Download as pdf or txt
Download as pdf or txt
You are on page 1of 34

E-BUSINESS in ORGANIZATION

Term Project

Subject- MIS205
Section- 04
Course Instructor- Adeyl khan (Ayn)

Submitted by-
Angela Hossain [163106363]
Shadman Shakib [1712018630]
Mashiat Tayara [1711557630]
Agami Rahman [1712164630]
Yasir Ahmed [1712576030]

Submitted to- Adeyl Khan


Submission date- 13.04.19
LETTER OF ACKNOWLEDGE

We would like to express our sincere gratitude to the managers of Shawpno for giving us
information about their website. We get so many information about their activities towards
customer through their customer care also. They have such organized activities that helps to
understand about their main works.
We sincerely thank the Department of Management of North South University for giving us such
a creative group work. It helps to learn many business things that we want more. And he also
teaches us basic concept about this assignment.
We express our warmest gratitude to our parents as they suggest us which product we should buy
for this assignment.

2
Table of Contents
EXECUTIVE SUMMARY ....................................................................................................................... 4
Introduction ...................................................................................................................................... 4
Requirement 1: E-business in organization ........................................................................................ 6
Introduce the business and its key business focus: ......................................................................... 6
Mission and vision of Swapno: ....................................................................................................... 6
Business model of Shwapno: ......................................................................................................... 7
Range of product and services: ...................................................................................................... 8
Consumer Segments: ..................................................................................................................... 9
Critical business process of Shwapno ........................................................................................... 10
Drivers of E-business adoption..................................................................................................... 11
Management of e-business/e-commerce..................................................................................... 12
Requirement 2: E-business revenue model ...................................................................................... 13
Revenue model of Shawpno ........................................................................................................ 14
Requirement 3: E-business platform/infrastructure ......................................................................... 15
E-business application- ................................................................................................................ 15
Supply Chain Management (SCM) Systems. ................................................................................. 15
Use of SCM Systems in Shawpno: ................................................................................................ 16
The Components of an ERP System: ............................................................................................. 16
How will CRM affect Shapwno? ................................................................................................... 17
Network technologies used in Shawpno: ..................................................................................... 19
Web technologies used in Shawpno:............................................................................................ 25
Requirement 4: Digital strategy for e-business................................................................................. 30
SWOT analysis ............................................................................................................................. 30
Opportunities and Threats ........................................................................................................... 31
Competitive Threats .................................................................................................................... 31
E-channel Structure ..................................................................................................................... 31
E-business structure .................................................................................................................... 32
Requirement 5: E-business Security ................................................................................................. 32
Conclusion....................................................................................................................................... 34
References ...................................................................................................................................... 34

3
EXECUTIVE SUMMARY

The report is fully based on E business where we have analyse different factors of an e- business.
Here, we have found out different ways, like how Shwapno basically operate in an online
platform. In addition, this project also has information based on managerial point of view of the
organization mentioned above, specifically on how the online businesses operate individually to
run the whole procedure starting from warehouse to consumer’s hand. And also we found out
how Shwapno’s manager can handle its internal and external factors.

Introduction
Retail trade is one of the conventional business practise of Bangladesh. Its extension is keeping
pace with populace development and changes in utilization designs, which are reliable with the
development of the economy. This extension has not been basically sorted out, on the grounds
that, as of not long ago, retailing had never been seen as an industry, yet rather as an individual
or privately-owned company element with an extremely restricted extent of composed
development. Practically no market data is accessible on the retail segment, however optional
sources demonstrate that the extent of the sustenance retail segment in Bangladesh could be
US$12-14 billion, and the quantity of retail basic need shops could associate with 1 million.
Retail is one of the greatest wellsprings of business (12 percent), and it contributed 13 percent
(discount and retail exchanging) to Bangladesh's GDP. Organized retail is blasting and making
enormous open door for ventures. Retailers however offer different organizations items work
out their own particular advertising procedures settling their own objective market towards
giving consumer loyalty independently. Retail locations regardless of product offering and
relative costs rise in all shape and sizes, for example, Specialty stores, Department stores,
Supermarkets, Superstore, Convenience stores, Discount stores and off-price stores. In
Bangladesh, the ranchers are paid ineffectively for similar harvests that are sold at to a great
degree high costs in the towns and urban communities. A major edge is taken away by the go
betweens and cartels who include little esteem. Understanding this esteem chain hole ACI
started two new organizations to be specific ACI Agribusiness and ACI Logistics, which by
expelling the mediators guaranteed sensible costs for the two agriculturists and customers. ACI
coordinations propelled Shwapno in 2008 a chain store which offered the retail involvement
with aggressive evaluating.

4
Items in SHWAPNO are isolated into three ace classes; Vegetable, Fruits, Meat and Grains,
Company Goods and Non Food difference. The organization has a huge number of stock
keeping units in their portfolio. To comprehend these SKUs, each article has its own
particular special number and portrayal. Also, each ace classification is additionally
subdivided into classification, subcategory and type class. These subdivisions awesome guide
the basic leadership of administration and help them to understand a great many different
SKUs. In the wake of arranging the items as per outlet request, the conveyance focuses
convey the requested items to all SHWAPNO outlets. Finally, every outlet creates and
conveys a Goods Received note to the applicable circulation focus recognizing the receipt of
products. SHWAPNO has a valuable business prospect, but it needs to overcome many
obstacles to fortify its place in the industry. It has entered too many unrelated markets
without proper expertise and preparation, it struggles with high employee turnover, its
management information system is in shambles, it is operating at a loss due to increasingly
compounding interest payments to banks for the funds acquired during its initial expansion
phase, it operates without standardized business process, its employees often lack job
descriptions, it suffers from system and real time stock mismatch, it has started many new
product categories that are lacking in product depth and product line, and lastly it suffers
from poor image in the market even though the present quality of service offered by the
company is way above industry standards. SHWAPNO can truly become a world class
organization if it overcomes all these hurdles in the near future. However, in terms of
revenue, ACI Logistics SHWAPNO currently holds third position behind ACI
pharmaceuticals and ACI consumer brands.

5
Requirement 1: E-business in organization

Introduce the business and its key business focus:

The buying pattern of urbanites has changed radically in the last decade. And this was more
so for the emergence of retail super chains in Bangladesh. Urban people prefer chain-
superstores over wet markets for ease of shopping. They can browse through the aisles filled
to the brim with everything from fresh tomatoes to household supplies. The reshaping of the
retail business story in Bangladesh did not happen overnight in Bangladesh largest retail
chain shwapno. Shwapno is a part of ACI Logistics. The ultimate objective of Shwapno is to
ensure access to a broader range of people of Bangladesh. It has a special focus to serve the
different income group of the country by providing services that are convenient, affordable
and reliable. This report mainly focuses on the retailer business as a whole and Shwapno
place in this competitive industry.

Business focus: Shwapno's plan for the future is to increase its purchases more from the
source. It currently receives 30 percent of its products directly from the source, while they
plan to take it to 100 percent. Shwapno is also planning to provide franchising opportunities
to small and medium enterprises across Bangladesh.

Mission and vision of Swapno:

Mission: Achieve business excellence through quality by understanding, accepting, meeting


and exceeding customer expectations. Following International Standards on Quality
Management System to ensure consistent quality of products and services to
achieve customer satisfaction.

Vision: At the heart of the Shwapno vision is the passion to make a positive impact on the
lives of many. From the beginning, Shwapno set off to drastically change the way in which
the mass consumer base in the country fulfills its daily needs, brining modern retail into the
lives of consumers that had for long relied on wet markets and other unsafe traditional
shopping channels. Beyond ensuring the quality of its own products, Shwapno has been a
major advocate in the movement for healthy living, carrying out numerous campaigns on
nutrition and food safety. To ensure it carries only the freshest fruits, vegetables, fish and
meat, ACI Logistics has developed a sourcing network with growers across the country, and
today 65% of Shwapno’s fresh produce is procured directly from source.

6
Business model of Shwapno:
Key Partners: Value Proposition Customer Customer Segments:
Key Activities: 
A ACI logistics * * High Quality and a
Wide Selection of Relationships: Medium Income
Inventory Management * Shop interaction * Urban Professionals
Direct supplier Products
* Supplier Management * Convenient Location* Facebook Group
* Manufacturers * Shrink Management
* Finance partners * Clean Environment* Call center
* Workforce Management
* PR/marketing firm
* VC/investor

Key Resources: Channels:


* Vendor Relationship/Network * Physical Stores
* Distribution System
* Supply Chain Software
* Prominent Location of the
Shops

7
Range of product and services:

Basically product range is a set of variations on a specific product made to appeal to


different market segments. A product mix is a blend of related products that can be
marketed together to similar market segments.
Shwapno sell loads of product through online. It does have lots of variations. These are:
1. Baby Food & Care

2. Pet Food / Care 9. Drinks

3. Chocolates & Candies -Mineral Water


-Juice
4. Fruits & Vegetables -Energy & Malted Drinks
-Fruits & Vegetables
-Soft Drinks
5. Meat & Fish -Tea & Coffee
-Meat
-Fish 10. Cooking Essentials
-Egg -Rice
6. Breads, Biscuit s & Cakes -Oil
-Breads -Spices
-Biscuits -Daal & Chola
-Cakes -Salt & Sugar
7. Milk & Dairy Products -Dry Vegetables (Ada, Roshun, Piyaj)
-Milk -Flour (Ata/Moyda) & Semolina (Shuji)
-Cheese
-Yogurt/Curd 11. Home Care & Cleaning
-Butter & Ghee
-Air Freshener
8. Snacks & Instant Foods -Cleaning Products
- Frozen Food -Pest Control
-Soups
-Chips, Nuts & Others
-Noodles, Pastas & Shemai 12. Fashion / Life Style
-Cereals
-Women
-Men
-Accessories
13. Sauces & Pickles
-Sauces
-Pickles

8
Consumer Segments:

Shwapno was initially focused on the price sensitive customer base, but after years of
steady growth of its conventional retail and other channels, the company now serves a diverse
market covering many segments. The Shwapno brand itself has evolved over this journey,
and today is shifting its focus from value to nurturing aspiration. By delivering excellent
service and through award winning communication campaigns, Shwapno has become the
most recognized and trusted retail name in the country, an achievement that was reflected
with the awarding of the Best Retail Brand award by Bangladesh Brand Forum in 2016.

Shwapno did understand about the needs of customers. They provide all kind of online
service through their e-business analysis. Shwapno provide customers everything through
their specific need group analysis. From those specific group of customers Shwapno will
analyse their most loyal customers. And based on that they basically develop unique value
propositions by segment. And then they do unique go-to market strategies by segments.

9
Critical business process of Shwapno

Figure 1: BUISNESS PROCESS OF SHWAPNO

a. ADD TO CART: First of all, when customer choose a product from the web page, they add
them to the cart
b. SHOPPING DETAILS: When the customer is ready to purchase, then the customer confirm
the purchase.
c. CONTROL OF PRODUCTS AVAILABILITY: Manager controls the availability of the
product and start processing for the customer.
d. COUPON CODE: Shwapno has provided a customer service which is having lots of sytem
for discount, customer when purchasing the product can enter the promo code to have the
discount.
e. PROCEED TO CHECKOUT: Customer proceeds to confirm the order and select the
payment system. Shwapno has lots of payment system which makes it easier to choose.
f. SHIPPING THE ORDER: Manager Start to proceeds the order received by the customer.
g. PREPARING THE INVOICE: They prepare an invoice to give to the customer.

10
h. NOTICE SENT TO CUSTOMER: they send a message about the order being dispatched.
i. FREE HOME DELIVERY: There is no need to pay for the home delivery since shwapno
do it for free.

Drivers of E-business adoption

a. OUTLETS: Shwapno has over 60 outlets hich are scattered all over the country in
Bangladesh. They have their own store in Dhaka, Chittagong, Sylhet, Gazipur and
Mymensing. This is to help the customer to reach the products and have all the things
they need at their doorstep. This also helps the customer to make an easy purchase in
online since they have their outlet in their own region.
b. PRODUCTS VARIETY: They have 100, 000 thousands of type of variety of
products which makes it easier for customers to order online and have always what
they need in one place. From baby foods to pets food, vegetables, meat, dairy
products, chocolate, spices etc.
c. 101+ OFFERS: Shwapno continue to provide with various types of offers and
discount to attract their customers. Especially when purchasing online products.
Various types of promo code and discounts are always available.
d. FREE HOME DELIVERY: Unlike other online store, Shwapno is providing a free
home delivery services for his customers who are living in Dhaka.
e. COST AND FRESH PRODUCT: The products of this online store are all
reasonable price which became more popular among the customers. Not only for this,
but also for the fresh products which they provide every day.
f. PAYMENT SYSTEM: Shwapno has different types of payment system which are,
VISA card, cash on delivery, debit card and credit card, bkash, masters card etc.
g. CUSTOMER SERVICE: For any problem, customer can contact the customer
service through heir hotline or through message, email. They are available every day
which make them available every day.

11
Management of e-business/e-commerce

a. Customer Relationship Management: Shwapno use software named EPS Mirror.


Through this software, manager can know about the new loyal customers that they
acquired, number of customer shopped in their online store, the ratio between
customer and loyal customer, amount of sale getting from the customers and amount
of sales getting from loyal customers.
http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/8629/13104011_BBA.pd
f?sequence=1&isAllowed=y

b. Supply Chain Management: Shwapno has a wide variety of items like; meat, fish,
dairy products, vegetables, pet`s food, clothes, skin products, baby products etc.
SCM of Shwapno has two types of sourcing, they are:

i. Direct sourcing:

Farmers/Suppliers Warehouse/
Distribution Center
(Contract)

Consumers Outlets

ii. Indirect Sourcing:

Land Lease Transportatio

Wet Markets/Bazar; Traders/Buying Team


Farmers
Karwan Bazar

Warehouse/ Distribution
Consumer Outlet
Center

12
Requirement 2: E-business revenue model

Value proposition: A value proposition is a guarantee of significant worth to be conveyed,


imparted, and recognized. It is additionally a conviction from the client about how esteem
(advantage) will be conveyed, experienced and obtained.

A value proposition can apply to a whole association, or parts thereof, or client records, or
items or administrations.

Making a value proposition is a piece of business system. Kaplan and Norton state "Procedure
depends on a separated client offer. Fulfilling clients is the wellspring of reasonable esteem
creation. Building up an incentive depends on a survey and examination of the advantages,
expenses, and esteem that an association can convey to its clients, imminent clients, and other
constituent gatherings inside and outside the association. It is additionally a situating of
significant worth, where Value = Benefits - (cost incorporates financial hazard).

Value proposition of Shwapno:

1. Fast and cheap delivery: Shawpno offers a very quick & cheap delivery to its
customers. For example, if a customer orders some item by 10.00 am in the morning,
that individual is likely to receive the product by 02.00 pm. It just takes hours to get the
product and the delivery cost is often very low. There’s offer available, if a customer
purchases above a particular amount, the delivery is free. Only the cost of product is to
be given which is very convenient for the customers as well.
2. Quality product: Shawpno always provides the fresh and quality product to its
customers. For instance, the daily necessaries like vegetables or fish/meat items, these
can’t be preserved even if it can, Shawpno always gives the fresh ones. And that’s why
products are higher in quality. Also, Shawpno offers the branded products to its
customers as opposed to the non-branded products. When coming to maintain quality,
Shawpno gives highest prority.
3. Flexibility: This is one of the major advantage an e commerce can have. Shawpno gives
much flexibility in terms of location of delivery, timing of delivery or payment methods
as well. A customer can choose to get the product at his/her home or anywhere else. At
which time the product should be delivered or which payment methods to choose (online
banking, credit card, mobile banking, cash on delivery etc.).

13
4. Wide selection: There are a broad range of product category for different brand loyal
customers. For instance, a particular customer wants soybean oil of Teer while others
want it of Rupchanda brand. For each product they can offer more than 7/8 brand and
also how much a customer want it. Is it going to be a family size or small pack etc. These
gives customers a lot of variation for choosing a particular product.

Revenue model of Shawpno

As per every e business, Shawpno also has its revenue model. A revenue model is a crucial
element of a business model. By this,we can understand how shawpno can generate revenues
like which revenue basis to implement how it adds value which can be offered i.e. might be
free delivery or great customer service it has. The revenue model also shows how it can set
prices for the products and who are those who will pay for the value added.

Online market place structure:


a) There are loads of ecommerce business which are in the market place, but among all
the 3 majors are Meena bazar,Agora and Chaldal.
b) These e commerce business like Shawpno or other e businesses can use many ways
with which they can effectively understand the customer segments.Firstly by
generating the behavior of the customer, the organization like Shawpno can generate
ideas how the marketing website should be based on their preferences.Next comes the
customer life cycle.By this many online businesses can track the potential customers
with whichthey have to retain and convert them into loyal customer.Thirdly,the most
common,by demographic analysis,customer segmentation can be easily

14
understood.Then comes the purchase history.By identifying that, Shawpno can
connect the buying behavior which leads the marketers to understand exactly which
marketing applies where.
c) There are many softwares like magento,shopify which the online businesses like
Shawpno, Agora can use as intermediaries
d) Location of trade in basically within Bangladesh these companies are national.But to
more specific, the tradings are between Dhaka mainly.
e) The portfolios for these types of online businesses like Shawpno,Agora is mainly the
grocery items that are the basic needs.But along with that fancy items like
electronics,house hold cutleries,cosmetics are also there as well.More or less all types
of products are there.
f) There are many revenue generating strategy which are applied like these types of
online businesses like different types of discounts,buy 1 get 1 free offer, other offers
as well.Also it keeps low price on each product which attracts these online shops
rather than the physical stores.

Requirement 3: E-business platform/infrastructure


E-business application-

Supply Chain Management (SCM) Systems: A Supply Chain Management (SCM) system
is an application system for planning, optimizing and controlling of volumes, due dates
and capacities along the whole Supply Chain.

The term Supply Chain Management can also be used as a synonym for Operations
Management.

SCM systems illustrate the processes within a company as well as processes between different
companies along the supply chain. Thereby processes of the company and processes of
suppliers, distributors, logistic service providers and customers could be monitored. Moreover,
with planning scenarios bottlenecks within the supply chain could be identified early.

An important pre-condition for a successful application of SCM tools are interfaces to the
existing Enterprise Resource Planning (ERP) and Production Planning and Control (PPC)
systems. SCM tools source master and transaction data from external ERP systems, process
them and return the results to the external systems.

15
Benefits of SCM Systems:

 Improvement of delivery dependability and customer orientation


 Reduction of stocks
 Cost reduction within the procurement, production and distribution network
 Decrease of processing time

Use of SCM Systems in Shawpno:

Shawpno is the electronic trade with goods and services. It provides various type of products
of different brands. So, by using SCM, Shawpno can easily sell out the products. It helps the
providers know about the existing stock and know about which one the demand has and which
has excessive supply and thus Shawpno can make a balance in the stock.

Enterprise Resource Planning (ERP) system: ERP refers to a software that brings together
all facets of an operation. These tools integrate functions like marketing, HR, logistics, and
customer service, all with the intention to make processes more efficient.

An ERP software automates the core processes by collecting orders, delivering reports on these
orders and gathering and storing information to make each of your departments effective.

In short, an Enterprise Resource Planning software has the ability to cut out unnecessary tasks
and jobs, essentially minimizing the amount of work each person in your organization has to
complete. This saves you money in the long run.

The Components of an ERP System:

 Payments made by customers


 Outstanding payments
 Shipment statuses
 Products and inventory
 Supplier relationships
 Details on customers and how your company targets them

16
How Shawpno uses ERP system:

ERP for Shawpno comes into play far more frequently than one might assume.

Let's say Shawpno sells gardening products through the online shop. Initially, the company
owns several software modules for completing various tasks throughout the sales and supply
chain process. For example, a customer comes to the store and checks out. The website sends
them a receipt and captures their email. Shawpno has both shipping and marketing processes
in place, but none of them connect with each other.

Therefore, an employee must check to see if the product is in stock, then mark the item as
bought so the warehouse or supplier can go and package it up.

Then, someone must notify the shipping company and send out a shipping confirmation email
with a tracking code.

Finally, Shawpno wants to bring the customer back to the store, so they have an email
marketing person who sends promotions to the list of emails in the database.

Customer Relationship Management (CRM): At its most fundamental level, CRM software
allows a company to manage business relationships and organize the data associated with these
partnerships. More specifically, a CRM platform stores both current customer and prospect
information collected in one centralized location. A CRM solution will greatly enhance the
internal visibility of the current operation and help company to keep track of partnerships and
potential sales opportunities on the back-end of business. If the ecommerce platform relies on
other businesses to operate, a CRM platform can significantly help organize a plethora of
customer information.

How will CRM affect Shapwno?

In addition to helping organize customer information and keep track of current sales
opportunities, CRM systems also improve collaboration between employees. Since most CRM
platforms are cloud-based, they can be accessed from nearly any location as long as you have
a secure Wi-Fi connection. Some systems even have apps for mobile device users, so they truly
are accessible from any location.

As a result, more visible and organized data will help provide products and services your
customers want. A CRM platform can benefit your online store in the following ways:

17
 Better develop an understanding of the customer
 Attract new customers
 Retain current customers
 Decrease customer management costs
 Integrate with an ecommerce platform

From a business partnership perspective, working relationships are heightened because


ecommerce companies with CRM platforms are able to more effectively provide quality
customer service.

Human Resource Management (HRM): Human resource professionals in the e-commerce


domain don’t have a ready-made proprietary model to follow or utilise as a fall-back
mechanism. Since e-commerce companies operate round the clock and all throughout the year,
HR personnel need to be agile, accessible and animated. The established rules of HR are
altering to correspond with the evolving hierarchies, new organisational alliances and
demographic characteristics. These changing workspace dynamics warrant a complete
overhaul of people, management, and policies. Institutionalising these practices, here is how
HR in e-commerce is modernising the conventions to be in sync with the contemporary
personnel and professions.

HR plays increasingly integral role in designing and supporting change of Shawpno:

 The general perspective is that bigger ecommerce firms more often than not have
spending plans that are more vulnerable to all choices. Since staff pros with e-business
learning and experience can be popular with the huge number of transitioning
organisations, it turns into a test for organisations to retain skilled people. It can
likewise turn out to be extremely costly as experts usually demand hefty salaries. The
importance of retaining solid performers becomes even more critical when time, money
and resources have gone into training them in new areas of skill development.
 Creating and holding such staff can be such a colossal test and potential budgetary
presentation, a developing pattern among organisations is to outsource the work. This
is commonly done in two positions: outside-in and back-to-front. The outside-in
configuration for e-commerce includes outsourcing a few tasks where there isn't
sufficient in-house learning or experience. As the ventures thrive, the organisation adds
to these abilities for future needs.

18
 It is critical for HR to be included in observing and cultivating both of these connections
to best address the organisation's issues. In addition, human resource departments must
establish a sense of collaboration and commonality among whatever system or
combination of systems is chosen. This can be done by not only making roles
challenging and stimulating, but also by sharing skills and cross training employees.
 Using the learning of SMEs (Subject Matter Experts) to help train other representatives
is an incredible approach to augment assets and expand aptitudes limit through broadly
educating endeavours. Giving the capacity to extend worker obligations and
opportunities through new learning encounters help to keep talented staff drawn in and
energetic about their work. Accordingly, the danger of losing a representative on
account of exhausting or commonplace day-by-day undertakings is reduced.

Network technologies used in Shawpno:

1. Infrastructure

Electronic commerce is built on top of a number of different technologies. These various


technologies created a layered, integrated infrastructure that permits the development and
deployment of electronic commerce applications. Each layer is founded on the layer below it
and cannot function without it.

Electronic commerce infrastructure

19
2. Electronic commerce topologies

There are three types of communication networks used for electronic commerce, depending on
whether the intent is to support cooperation with a range of stakeholders, cooperation among
employees, or cooperation with a business partner. Each of these topologies is briefly
described, and we discuss how they can be used to support electronic commerce.

Electronic commerce topologies-

Topology Internet Intranet Extranet

Extent Global Organizational Business partnership

Focus Stakeholder Employee information and Distribution channel


relationships communication communication

The Internet is a global network of networks. Any computer connected to the Internet can
communicate with any server in the system (see Exhibit 5). Thus, the Internet is well-suited to
communicating with a wide variety of stakeholders. Adobe, for example, uses its Web site to
distribute software changes to customers and provide financial and other reports to investors .

The Internet

20
Many organizations have realized that Internet technology can also be used to establish an
intra-organizational network that enables people within the organization to communicate and
cooperate with each other. This so-called intranet essentially a fenced-off mini-Internet within
an organization. A firewall (see See Firewall) is used to restrict access so that people outside
the organization cannot access the intranet. While an intranet may not directly facilitate
cooperation with external stakeholders, its ultimate goal is to improve an organization’s ability
to serve these stakeholders.

An Intranet

An extranet

The Internet and intranet, as the names imply, are networks. That is, an array of computers can
connect to each other. In some situations, however, an organization may want to restrict
connection capabilities. An extranet (see Exhibit 7) is designed to link a buyer and supplier to
facilitate greater coordination of common activities. The idea of an extranet derives from the
notion that each business has a value chain and the end-point of one firm’s chain links to the

21
beginning of another’s. Internet technology can be used to support communication and data
transfer between two value chains. Communication is confined to the computers linking the
two organizations. An organization can have multiple extranets to link it with many other
organizations, but each extranet is specialized to support partnership coordination.

The economies gained from low-cost Internet software and infrastructure mean many more
buyers and supplier pairs can now cooperate electronically. The cost of linking using Internet
technology is an order of magnitude lower than using commercial communication networks
for electronic data interchange (EDI) , the traditional approach for electronic cooperation
between business partners.

3. EDI

EDI, which has been used for some 20 years, describes the electronic exchange of standard
business documents between firms. A structured, standardized data format is used to exchange
common business documents (e.g., invoices and shipping orders) between trading partners. In
contrast to the free form of e-mail messages, EDI supports the exchange of repetitive, routine
business transactions. Standards mean that routine electronic transactions can be concise and
precise. The main standard used in the U.S. and Canada is known as ANSI X.12, and the major
international standard is EDIFACT. Firms following the same standard can electronically share
data. Before EDI, many standard messages between partners were generated by computer,
printed, and mailed to the other party that then manually entered the data into its computer. The
main advantages of EDI are:

 paper handling is reduced, saving time and money


 data are exchanged in real time;
 there are fewer errors since data are keyed only once;
 enhanced data sharing enables greater coordination of activities between business
partners;
 Money flows are accelerated and payments received sooner.

Despite these advantages, for most companies EDI is still the exception, not the rule. A recent
survey in the United States showed that almost 80 percent of the information flow between
firms is on paper. Paper should be the exception, not the rule. Most EDI traffic has been handled
by value-added networks (VANs) or private networks. VANs add communication services to

22
those provided by common carriers (e.g., AT&T in the U.S. and Telstra in Australia). However,
these networks are too expensive for all but the largest 100,000 of the 6 million businesses in
existence today in the United States. As a result, many businesses have not been able to
participate in the benefits associated with EDI. However, the Internet will enable these smaller
companies to take advantage of EDI.

Internet communication costs are typically less than with traditional EDI. In addition, the
Internet is a global network potentially accessible by nearly every firm. Consequently, the
Internet is displacing VANs as the electronic transport path between trading partners.

The simplest approach is to use the Internet as a means of replacing a VAN by using a
commercially available Internet EDI package. EDI, with its roots in the 1960s, is a system for
exchanging text, and the opportunity to use the multimedia capabilities of the Web is missed if
a pure replacement strategy is applied. The multimedia capability of the Internet creates an
opportunity for new applications that spawn a qualitatively different type of information
exchange within a partnership. Once multimedia capability is added to the information
exchange equation, then a new class of applications can be developed (e.g., educating the other
partner about a firm’s purchasing procedures).

4. Electronic money
When commerce goes electronic, the means of paying for goods and services must also go
electronic. Paper-based payment systems cannot support the speed, security, privacy, and
internationalization necessary for electronic commerce. In this section, we discuss four
methods of electronic payment:

 electronic funds transfer


 digital cash
 e cash
 credit card

There are four fundamental concerns regarding electronic money: security , authentication,
anonymity, and divisibility. Consumers and organizations need to be assured that their on-line
orders are protected, and organizations must be able to transfer securely many millions of
dollars. Buyers and sellers must be able to verify that the electronic money they receive is real;
consumers must have faith in electronic currency. Transactions, when required, should remain
confidential. Electronic currency must be spendable in small amounts (e.g., less than one-tenth
of a cent) so that high-volume, small-value Internet transactions are feasible (e.g., paying 0.1

23
cent to read an article in an encyclopedia). The various approaches to electronic money vary in
their capability to solve these concerns.

Characteristics of electronic money

Security Authentication Anonymity Divisibility

EFT High High Low Yes

Digital cash Medium High High Yes

Ecash High High High Yes

Credit card High High Low Yes

Any money system, real or electronic, must have a reasonable level of security and a high level
of authentication, otherwise people will not use it. All electronic money systems are potentially
divisible. There is a need, however, to adapt some systems so that transactions can be
automated. For example, you do not want to have to type your full credit card details each time
you spend one-tenth of a cent. A modified credit card system, which automatically sends
previously stored details from your personal computer, could be used for small transactions.

The technical problems of electronic money have not been completely solved, but many people
are working on their solution because electronic money promises efficiencies that will reduce
the costs of transactions between buyers and sellers. It will also enable access to the global
marketplace. In the next few years, electronic currency will displace notes and coins for many
transactions.

24
Web technologies used in Shawpno:

Name Category Description


Google Tag tag Google Tag Manager is a label the board framework made by Google
Manager management to oversee JavaScript and HTML labels utilized for following and
platform investigation on sites (variations of e-promoting labels, at times
alluded to as following pixels or web signals).

Google Plus Internet- Google+, articulated and once in a while composed as Google Plus, is
based social an Internet-based informal community claimed and worked by Google.
network The system propelled in June 2011 trying to test other interpersonal
organizations, for example, Facebook and Twitter and it is intended to
connect Google's items like YouTube

Mustache Web Mustache is a straightforward web layout framework with executions


template accessible for ActionScript, C++, Clojure, CoffeeScript, ColdFusion,
system Common Lisp, D, Dart, Delphi, Erlang, Fantom, Go, Haskell, Io, Java,
JavaScript, Julia, Lua, .NET, Objective-C, OCaml, Perl, PHP, Pharo,
Python, R, Racket, Ruby, Rust, Scala, Smalltalk, Swift, Tcl, CFEngine
and XQuery
Cloud Flare Reverse Cloudflare, Inc. is a U.S. organization that gives content conveyance
proxy arrange administrations, DDoS alleviation, Internet security and
circulated area name server administrations. Cloudflare's
administrations sit between the guest and the Cloudflare client's
facilitating supplier, going about as a switch intermediary for sites.

Web content management strategy:

A web content management system (WCMS), a utilization of a content management system


(CMS), is a set of tools that provides an organization with a way to manage digital information
on a website through creating and maintaining content without prior knowledge of web
programming or markup languages. Managing web content effectively can have useful
business applications in the enterprise, producing insights for decision-making and delivering
results, as well as value.

25
1. Updating data and content-

 Consider content AND the people that create your content

Halvorson, co-author of Content Strategy for the Web and one of the web’s first content
strategists, developed a framework that not only focuses on the actual content, but also the
people that create the content.

Her belief is that by keeping the workflow and governance factors in mind when developing a
content strategy, we can deliver more useful and more usable content to online audiences,
whilst meeting business objectives.

“Halvorson’s content strategy framework “The Quad” includes Content Components and
People Components”

Content Components:

 Substance – topics, tone, style, what message we need to communicate


 Structure – how we prioritize and break up the content into building blocks

People components:

 Workflow – the process, tools and resources we need to create and maintain content

26
 Governance – consistency, integrity and quality of the content

Bottom line: Considering content AND the people that create the content will help in meeting
users’ expectations and achieving business objectives.

 Match writing to the audience’s literacy level

Angela Colter from Electronic Ink did a series of user tests with people of varying literacy
levels. The results of her research shows that users with low literacy levels struggle to complete
basic tasks on websites that have content written for people with high literacy levels.

When using websites that require a low literacy level, lower literacy users completed their tasks
faster and with less frustration.

One incidental discovery from this research, however, was that users with high literacy levels
also scored much better when the language on the website was of a lower level.

Bottom line: Keep your language simple and clear. Your low and high literacy users will thank
you for it.

 The Five W’s (and H) of content marketing strategy

Anyone schooled in journalism will be familiar with the Five W’s and H of journalism: Who,
What, Why, When, Where and How.

Purists argue that a story isn’t complete unless all six questions are answered. It’s certainly
valid in a journalism sense, since omission of any of these questions will leave a hole in your
story.

So how does this relate to content strategy for the web? Rick Yagodich of Think Info has
reshuffled the sequence of the Five W’s (and H) to provide a checklist that online content
strategists can use to ensure their content strategy is watertight:

 Why – Know the business case and objectives. Why are you embarking on this project?
 What – What is the message?

27
 Who – Who is the audience?
 Where – Where will the message be read (location, device, context)?
 How – How should we present/structure the content?
 When – Timing of the process to create and publish the content.

Bottom line: The Five W’s (and H) provide a checklist to ensure your content strategy covers
all bases.

2. Increasing speed and responsiveness.

For speed-

 Use a Content Delivery Network (CDN)

A content delivery network is a set of web servers distributed across various geographical
locations that provide web content to end users with regard to their location. When you host
the website on a single server, all users requests are sent to the same hardware. For this reason,
the time needed to process each request increases. On top of that, the load time increases when
users are physically far from the server. With CDN, user requests are redirected to the nearest
server. As a result, the content is delivered to a user quicker and a website works faster. This
is a rather expensive, but quite effective way to optimize the load time.

 Move your website to a better host

There are three possible types of hosting:

 Shared hosting
 Virtual Private Servers (VPS) hosting
 Dedicated server

The most popular type of hosting that is used all over the world is sharing hosting. That’s the
cheapest way to get your site online in a short time and for a low fee. It’s essential to choose
the fast web host to ensure better optimization. With shared hosting, you share CPU, disk space,
and RAM with other sites that also use this server. This is the main reason why shared hosting
isn’t as fast as VPS or a dedicated server.

Virtual Private Servers and dedicated servers are much faster. VPS uses multiple servers for
content distribution. Having VPS you share the server with its other users and have your own

28
part of the virtual server where your configurations don’t influence other clients. If your
website has the average traffic or you have the eCommerce site with traffic spikes in some
periods, VPS will be the optimal solution for you.

The most expensive hosting option is to use a dedicated server which can be your own physical
server. In this case, you pay a server rent and hire a system administrator to maintain it.

Another approach is to rent dedicated cloud resource from AWS, Microsoft Azure, Google, or
other public cloud provider. Both approaches can also be combined into a hybrid cloud that we
discussed recently. With dedicated servers, all resources belong only to you and you get the
full control of it. Cloud infrastructures can also add unlimited and on-demand scalability under
a number of packages.

Serverless architecture is yet another option that removes maintenance and server set up
procedures altogether. Consider reading our separate article covering serverless architecture
specifics and benefits.

 Optimize the size of images on your website

Everyone loves eye-catching images. In the case of successful eCommerce sites, images are
the vital part. A lot of photos, images, and graphics on your product pages improve
engagement. The negative side of the image use is that they are usually large files that slow
down a website.

The best way to reduce the image size without compromising its quality is to compress images
using such tools as ImageOptim, JPEGmini, or Kraken. The procedure may take a bit of time
but it’s worth it. Another way to reduce the image size is to use the HTML responsive images
<secret> and <size> attributes that adjust image size based on user display properties.

 Reduce the number of plugins

Plugins are common components of each website. They add specific features suggested by
third parties. Unfortunately, the more plugins are installed, the more resources are needed to
run them. As a result, the website works slower and also security issues can appear. As time
passes, the number of plugins grows, while some of them may not be used anymore. We
recommend checking out all the plugins you have installed and deleting unnecessary ones.
First, run the performance tests on your page to find out which plugins are slowing down your

29
website. Not only does the website speed depend on the number of installed plugins but also
on their quality. Try to avoid plugins that load a lot of scripts and styles or generate a lot of
database queries. The best solution is to keep only the necessary ones and ensure that they are
kept up to date.

For responsiveness-

 Project management
 Business strategy assessment
 Keyword development
 Research and analysis
 User experience (UX) design
 Wireframe design
 Information Architecture (IA)
 User interface (UI) design
 Visual design
 Graphic design
 Programming/development
 CMS development
 Search engine optimization (SEO)

Requirement 4: Digital strategy for e-business

SWOT analysis

Strengths Weakness
 Investment in supply  Perishables product
chain  Competitors less outlet
 Lower cost and deeper  Contract farming
investment
 Capture higher share

30
Opportunities and Threats

Opportunities Threats
 Robust contract farming model  Political unrest
 Increasing demand  Price competition with competitors
 Increasing per capita  Increasing real rental cost

Competitive Threats

1. Pricing: Swapno face this problem of price war. Especially when other company
reduces their prices for the same product, the customers focus on the reduced price.
Sometimes, Swapno gets loss for reducing their own prices for selling. It is
unprofitable for them when this reduction of price is increasing.
2. Customer experience: Low customer satisfaction is very bad for any large company.
When customer gets more service then Swapno for any particular outlet, they go for
that outlet naturally. Offer list, card benefits, etc. are more preferable to the regular
customers. But now the increasing number of offers to another company creates
competition for Swapno. They also have to create many benefits for their customers
that are not always profitable for Swapno.

E-channel Structure

Events

E-buisness
Feedback
design

Knowledge
building and
capability
evaluation
Application
development Key
and objectives
deployment

E-buisness
blueprint

31
E-business structure

Enterprise discretionary
and non-discretionary
•Information requirements •Project architecture
architecture meta model
•Buisness arcitecture •Data architecture •enterprise architecture
•Delivery system
•Hardware, softwre,
communicatios

Feedback planning, organizing

Requirement 5: E-business Security

1. IT SECURITY RISK

32
a. PHISHING: There is a risk of fraudulent attempt of taking sensitive information like
username and passwords and credit cards details of customers which make it very much
dangerous for a person.
b. DATA ERRORS: There could be data error in case data storage, purchasing and selling
order, logistics, count of products in inventory etc.
c. UNPROTECTED ONLINE SERVICES: this may result into disclose of so many
information which could be a business secrets and information of customers which could
be personal.
d. CREDIT CARD FRAUD: so many customers may lose their money from their credit or
credit card which could be a huge problem both for the business and for the customers.
Even the business itself could lose lots of money.
e. HACKING: Through hacking, a business can lose their own valuable information their
business secrets through hacking which can result in to huge disaster.

2) As mentioned before we have seen there are many security risks that an e commerce
business like Shawpno can face.But among those, there are two major and severe risks which
can damage Shawpno massively.Firstly phishing attack that is taking fraudulent attempt to
take away internal information by the competitors in the online marketplace.In addition to
that another massive security risk can be hacking.
But a business like Shawpno cannot take risks that can lead to a massive distruction but on
the contrary,the organization also cannot avoid the risks as well.That is why to minimize the
risks there are some ways which can be implemented as well.
3. a) Prevention for phishing attack which can be used by Shawpno are, firstly use antivirus
software during every piece of work they are doing, Then it has to be aware of the random
pop ups which usually comes. Use of firewalls can also prevent Shawpno to not lose
information to the hackers. Then Shawpno has to have their browsers updated as soon as the
updates version comes.Shawpno can also train or hire those IT employees who knows the
best possible techniques of a phishing attack. But most importantly,Shawpno can install anti
phishing tool bar in every devices it is using for its online business.
b) Prevention for hacking which can be used for Shawpno are, firstly shawpno has to use a
strong secure ecommerce platform that uses sophisticated programming language, then it has
to immediately install secure connection for online works to prevent hacking. Shawpno can
also use strong address including a heavy verification card. Along with that usage of strong
passwords must be there. Another interesting prevention can be implemented that using
system alerts for suspicious activities. For example when a transaction is coming from the
same address at the same time or frequently then the IT officers can verify what actually is
happening. Might be a credit card fraud or information getting lost in some other devices etc.

33
Conclusion

In this term project we discussed overall ideal of an E-business named Shwapno. We tried to
find out the holistic things about Shwapno. For that we had to visit different webpages. We
had to search many things in Wikipedia. All the references are provided underneath.

We observed many diagrams and tried to provide it in the project and we had to go through
with the sequence of the project. We discussed about the mission and vision , revenue model,
infrastructure of Shwapno, Safety issues of the softwares, SWOT analysis and did analysis
too.

Through these over mentioned analysis we learnt so many things and also know how to solve
the e-business problems.

References

 https://www.cio.com/article/2384809/15-ways-to-protect-your-ecommerce-site-from-
hacking-and-fraud.html
 http://www.phishing.org/10-ways-to-avoid-phishing-scams
 https://www.google.com/search?ei=Xa6sXLKTBpK4mAXKyKDIBw&q=revenue+m
odel+&oq=revenue+model+&gs_l=psy-
ab.3..0l10.18591.20609..21394...0.0..1.520.2100.0j7j1j1j0j1......0....1..gws-
wiz.......0i71j0i22i30.j1OEpZgc0Sw
 https://www.google.com/search?q=customer+segments+of+e+commerce+business&h
l=en&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiE2qnvp8PhAhXdIaYKHe7K
BGAQ_AUIDigB&biw=1707&bih=781#imgrc=iK9XX_LiOgsWGM:
 https://www.slideshare.net/KajiulKhondoker/final-project-mgt-314-report-of
 https://www.shwapno.com/
 https://www.floship.com/10-inevitable-ecommerce-risks/
 https://www.smartinsights.com/ecommerce/ecommerce-strategy/7-risks-you-need-to-
know-when-launching-your-ecommerce-business-in-2018/

34

You might also like