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SAINT LOUIS UNIVERSITY

School of Accountancy, Management, Computing and Information Studies

Custom-made Website for Elma’s Online Shopping


In partial fulfillment of the requirements for GIT

By:
Magdaong, Jason
Lacaden, Sam
Miravalles, Ariel
Montes, Lambert
Olimon, Vhinz Angelo
Pascual, John Patrick
Valiente, Jasper

DATE OF SUBMISSION
March 2021
Table of Contents
CHAPTER 1: COMPANY OVERVIEW 3
Business Profile 3
Mission and Vision3
History 3
Business Rules 4
Business Process 4
CHAPTER 2: SYSTEM ANALYSIS 5
Problems Encountered 5
Proposed Solution 5
Functional Requirement 6
Non-Functional Requirement 6
Scope 7
Delimitation 7
Functional Requirement 7
Feasibility Analysis 7
Schedule 8
Technical Feasibility 8
Operational Requirement 8
Economic Feasibility 9
Return of Investment 10
Payback Period 11
Benefits 12
CHAPTER 3: DESIGN 13
Decomposition Diagram 13
Context Diagram 13
Level Diagram 14
Prototype 14
Conclusion and Recommendation 16
Bibliography 16
Appendices17

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CHAPTER 1: COMPANY OVERVIEW
Bussiness Profile
Elma Pallay Ligmayo is the owner of Elma’s Online Shopping, a solopreneur who
sells different kinds of items acquiring it from her suppliers. Supplying every customer’s
desired items. The business undertakes retail service of clothes for babies to adults,
whose target customers are interested on the item clothes and bags to develop their
fashion to the next level. And toys to provide fulfillment and entertainment. It is a
business where in it sells quality products to their buyers.
Elma’s Online Shopping is a small business where in it only compromises only
one staff which is the owner herself. The owner is also the one who manages the items,
checks stocks, sales and the payments of the customers. The business started on the
year of 2020, middle of the pandemic, so the business is somewhat new. The online
business is only found in Facebook and Instagram platform, where the products are
posted online containing the images and its description.
Being in the business, it sees itself in coming years to (1) Increase enlargement
of business to enhance in digital marketing gaining (2) good reputation to the business,
(3) organized products or items and able to (4) enter to new market where the
business will expand and provide more products to customers to satisfy their needs.

Mission and Vison


Mission: Elma’s Online Shopping strives to sell our customers the best quality thrifted
clothes and provide the best clothing selection with lowest possible prices and deliver
them at their utmost convenience.
Vision: To be one of the best Online Thrift stores in Baguio City, where our customers
can find and discover clothes that provides comfort, style and long-lasting durability to
them.

HISTORY
Elma’s Online Shopping is an online business, was started by Elma Pallay
Ligmayo. Due to COVID-19 pandemic, the impact led to many negative outcomes
including economy’s normal flow and financial markets. Reduction of income, increase
of unemployment, delaying of transportation and services are included on outcomes of
alleviation of COVID-19 spreading (Pak A., et al. 2020). The workforce is already been
affected and Ms. Elma is one of the workers who are affected. This gave her the

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opportunity to make her online business to meet her financial needs. The owner was
introduced to the suppliers to provide the items that may be sold. The products of the
business are in the ff:
 Clothes
 Bags
 Shoes
 Toys

BUSINESS RULES
1. Always have a record of purchased items or receipt in case of situations.
2. Always entertain and answer question from any customers.
3. Only posted items will be purchased by the customers.
4. Always provide descriptions and price of the items.
5. There is no returning of products once it is purchased

BUSINESS PROCESS
The business will start once the customer informs the seller that he/she will
inquire their desired items from the provided post on the Facebook. The seller
responds provide the basic information and the inquiries products need by the
customer. The seller will ask the confirmation of the customer purchase. The seller will
prepare the item, then delivering the product to the dropping area. The payment will be
deposited to the partner stores where the product will be dropped for pick up. The
customer will proceed to the dropping area and give his/her payment exchange of the
product and receipt. The partner store will give the receipt to the seller, the seller will
record the purchased item to its record notebook. The seller will collect and compute
the sales inventory collection.

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BUSSINESS PROCESS DESIGN

CHAPTER 2: SYSTEM ANALYSIS


Problems Encountered
The Elma’s Online Shopping uses facebook where the seller post the images and
writes the description every single settlement on products to add supplies, update and
record.
1.) Miscounting of supplies/purchased items
2.) Disorganize product display
3.) Bogus customers
4.) Lack of product information

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Proposed solution
The aim of the proposed CUSTOM-MADE WEBSITE is to level up the operation
of displaying of products and makes it more convenient for the customers to buy
products. The website will help the seller to be more accessible, organized, update and
inspect on day-to-day suitable for the business. With the usage of this website, it can
be a highly effective marketing tool that can be very cost-efficient.
Functional Requirements
The website will give Elma’s Online Shopping the ability to connect with their
costumers more convenient. The website will make the online transactions easy and
hassle free to prevent numerous problems. The functional requirement of the owner is
different from the costumers. These are:
Owner
 The User stories will give the website admin to have the ability to post videos,
images, and comments the will be posted on the website feed.
 The user can add, delete, or archive a post of an item that are available, not
available, or on-hold products in theirs stock respectively.
 The sales system should allow the user to record costumer sales
 For additional functions are push notifications, to notify the seller whether there’s
a message, an item is checked out, paid, cancelled, and other cases that needs
attention.
Costumer
 When the user opens the website the first page is seen where the product sales
or posts are sorted by its trendiness are seen. Here they can interact with a post
and add it to cart or check it out and add a comment.
 The user can select their own styles and taste and the website will lead the users
directly to the product that they are looking for.
 For additional functions are push notifications, to notify the costumer whether
there’s a message from the seller, the item is shipped and all of the data to keep
the user updated of their item, and other cases that needs attention.
Non-Functional Requirements:
 The website should perform well in low latency conditions. Show website content
with the smallest delay possible
 The website is accessible through any browsing apps
 The website has detailed protocols for authentication to make sure there are no
bogus buyers

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 Encryption of private messages to keep all transactions private and safe.
Scope and Delimitation
This study compromises the function of the website such as displaying,
operating, monitoring, inspecting, reviewing, organizing and recording the
supplies/items of Elma’s Online Shopping, making the website to be the platform of the
business.
 ADVERSE PUBLICITY
The website is open for all customer’s feedback, but also open for the people
who are unfavorable in the business, falsely accusing the business gaining
negative reputation to the business making the business to not function well
leading to decrease of business sales or maybe bankruptcy.
 SPAM
Spam defines to a broad range of unwanted pop-ups, links, data and emails that
we face in our daily interactions on the web. Spam can be simply unwanted, but
it can also be harmful, misleading and problematic for the website in a number
of ways.
 CRASH
One of the biggest problems of ecommerce is when the store’s website crashes,
no one will buy from your store if your site crashes.
 COMPETITION
With increased use of the Internet to buy goods and services. The business is no
longer just competing with neighbours, but competing with other e-commerce
business.
 CUSTOMER SERVICE
The customers can’t try before buying the product, because of lack of interaction
personally, the seller wont able to make service to the customers.
Feasibility Analysis

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Schedule

Technical Feasibility
Software Requirements

Building Requirements
Web Developer Fee
Web hosting fee

Operational Requirement
The Online bussiness uses only Facebook as a platform for selling their products.
And the owner uses pen and notebook to record all the sales and supplies manually.
Although Facebook provides a large user base that a bussiness can potentially cultivate,
it is still just another member of the Facebook community. Facebook is the master of its
own domain and can change the rules at any time, either increasing the cost of
advertising, tweaking its privacy policies or deleting your page without warning. A lack
of control and customization can restrain the business, making it difficult to turn your

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followers into dedicated customers. Facebook pages require a lot of maintenance.
whether that's interacting with users, deleting spam or removing false or malicious
content. Negative or aggressive comments from other users could mistakenly be
associated with the business or could drive the audience away through their
offensiveness. Users could also flood the Facebook page with spam, reducing the
effectiveness of the message and making the brand seem less professional.
Furthermore, using pen and notebook to manually record the sales and supplies is time
consuming, it is also prone to human errors which the seller is recording mistakenly.
We proposed a software which is a custom-made website, which the owner will
able to control the bussiness 24/7. The website will undergo in web hosting, web
hosting is the process of renting or buying space to house a website on a server to be
viewable online which payable in every year. The website will automatically sort the
products and its description once the products are posted, it will be sorted depending
on its designated group such as bags, clothes, toys and etc. making it organize in the
platform, so that customers will able to choose without confusion and not time
consuming. The website will automatically record all the information of every
transaction has made to reduce human errors and missing purchased/unpurchased
sales. Feedbacks and comment boxes are available to the website for better
improvement of the bussiness.
Economic Feasibility
Current System:

Specifications Source Unit Price Total Price (in


(in Php) Php)
Logbooks
Valiant Record Book National
(500 sheets) Bookstore
-(2 logbooks/month x 12
months x 52.00 each) 52.00 1, 248.00
Ball pen
HBW .5- Black (3 National
pieces/month x 12months x Bookstore
5.00 each)

5.00 180.00
Calculator
Casio-Mx-12B National
Bookstore

449.00 449.00

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Electricity Cost
Power Consumption 27.25 watts/ hour
(phone) BENECO 5 hours
Multiplied by: Working 7 days
hours/day 52 weeks
Multiplied by: Working 1000 watts
days/week 3.85
Multiplied by: Weeks in a
year
Divided by: watt/ kilowatt
Multiplied by: BENECO Rate
Total Electricity Cost 190.94
TOTAL COST OF THE 2, 067.94
CURENT SYSTEM

Proposed System:

Specification Source Amount (in Php)


Website Cost Mr. Clark Jerome F. 35, 000.00
Fee of creating a website Cabulera
according to Mr. Cabulera (IT Consultant)

Electricity Cost
Power Consumption 27.25 watts/ hour
(phone) BENECO 5 hours
Multiplied by: Working 7 days
hours/day 52 weeks
Multiplied by: Working 1000 watts
days/week 3.85
Multiplied by: Weeks in a
year
Divided by: watt/ kilowatt
Multiplied by: BENECO Rate
Total Electricity Cost 190.94
Web Hosting
Web Hosting Fee/month: www.hostinger.ph 1, 908.00
159.00 x 12months
TOTAL COST OF THE 37, 098.94
PROPOSED SYSTEM

Return of Investment (ROI)


Net Profit – Total Investment / Total Investment *100

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Net Profit = Total Revenue – Total Expenses
= Estimated Costumers Daily (10 Costumers)
= Php 750 (a day) x 30 (working days in a month)
= Php 750 x 12 months
= Php 108, 000 (Total Revenue) – Php 37, 098.94 (Total Expenses)
Net Profit = Php 70, 901.06
Php 70, 901.06 (Net Profit) - 37, 098.94 (Total Investment) / 37, 098.94 (Total
Investment) *100
ROI = 91.11%

Payback Period
Initial Investment / Annual Cash Inflow
Php 37, 098.94 / Php 108, 000
PP = 0.344 years

Benefits
Tangible Benefits:
● Cost Efficient
Having the website cuts the cost of labor staff wages, rental and utilities
because the owner itself can do the taks all by his/herself (Parachute, 2020).
Eliminating these overheads will also allow the business to lower their prices, giving
their business that real competitive edge. With this, the owner can invest more in
products rather than on the said components.
● Gains Profit
In order for a business to gain profit it needs to stay visible and connected to
its potential customers all the time (York, 2019). Having the website can reach a wider
audience and can attract more possible customers and be able to connect to its
customers 24/7. More customers lead to more income thus, can make the business gain
profit and grow.
● Accurate reports

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With the feature of properly displaying and organizing products this can help the
owner/seller to make accurate results in tallying the total sales and inventory of the
business. It can lessen the said problems encountered by the business.
● Reach Wider Audience/ Customers
The proposed website's most obvious advantage to the business is the potential
for reaching a wider audience/customer. The business may be local but the website can
potentially attract more customers and be more connected to them.

Intangible Benefits:
• More customers informed
Less time will be spent by staff explaining the basics of a product or service to
inquiring customers. The owner can directly refer them to the website if they have any
additional questions. Also, before purchasing, the customers will be able to do as much
advance reading on product info as they want.
• Decision Making
The website can give the owner the privilege in seeing the mostly sold
products and products that are not usually sold. Thus, it can be a tool for decision
making in what products the owner should get since it produces information quickly
for reporting and makes better projections.
• Makes the business accessible at all times
The website is available and accessible 24/7, 365 days a year (Zambas, 2017). It
provides the customers with the convenience of reviewing the products and services
when the business is closed.
• Time Saver
The website reduces the time to manually send the products to the
customers when they ask. Also, with the help of the information present in the
website, the time consumed in doing inventory will be lessened.
• Look professional/Credibility
Rather than just being an online thrift store, having a website gives the
impression that the business is serious, and ready to transact with all kinds of
customers (Zambas, 2017). This gives the business a reputation and a good
customer satisfaction.

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CHAPTER 3:DESIGN
Decomposition Diagram

Context Diagram

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Level 0 Diagram

Prototype

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Conclusion and Recommendations
As a result of having a website for Elma’s Online Shopping, this has given the
owner a massive impact on the competition of online selling because it makes detailed
shopping more convenient for costumers. With the help of this website, the owner and
the costumers save time as the transactions are easier and quicker than direct
messages or private messages which are prone to misunderstandings and problems. In
this kind of system, The Elma’s Online Shopping can achieve customer satisfaction
because of the excellent method the company used.
The researchers recommend to improve the business’s need to make the website
a user-friendly wherein, it updates automatically, it notifies the owner and costumers
with no buffers and delay, and protection from viruses and trojans that can put the
business into serious problems.
Use a referral program or paid sponsorships to attract costumers surfing through
the internet. This strategy encourages costumers to spread the word. Offering an
inducement to costumers in the form of rewards such as vouchers and discounts
through a referral program. For the costumers to receive these rewards when a
costumer refers a new costumer. This is a good strategy for the business to sell more
or even more marketing opportunities.

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Bibliography
Bakos Y., et. Al (2005) The Impact of E-Commerce on Competition in the Retail
Brokerage Industry. Information Systems Research. Vol. 16, No. 4. Retrieved
from https://pubsonline.informs.org/doi/abs/10.1287/isre.1050.0064
Editor. (2020, February 12). Non-functional requirements: Examples, types, how to
approach. Retrieved March 11, 2021, from https://www.altexsoft.com/blog/non-
functional-requirements/
Ferreira N.M. (2019). 20 ECOMMERCE ADVANTAGES AND DISADVANTAGES YOU NEED
TO KNOW. Retrieved from https://www.oberlo.com/blog/20-ecommerce-
advantages-and-disadvantages
Khurana A. (2019). E-Commerce Competition Is Intense but You Can Win. Retrieved
from https://www.thebalancesmb.com/ecommerce-competition-is-intense-but-
you-can-win-1141575
Retrieved from https://www.exai.com/blog/websites -crash#:~:text=The%20resources
%20you%20have%20on,and%20expired%20domain%2C%20among%20others.
Retrieved from https://www.siteuptime.com/blog/2017/08/24/website-crashes-the-true-
cost-for-transport-companies/
Retrieved from https://xplaind.com/849768/payback-period
Pak A., et al. (2020). Economic Consequences of the COVID-19 Outbreak: The Need for
Epidemic Preparedness. PERSPECTIVE ARTICLE. 1, 1. Retrieved from
https://www.frontiersin.org/articles/10.3389/fpubh.2020.00241/full#:~:text=The
%20COVID%2D19%20pandemic%20has,disruptions%20and%20closures%20of
%20factories.
Parachute. (2020). Top 10 benefits of having a website. Retrieved from
https://www.parachute.net/insights/top-10-benefits-of-having-a-website
Pavlou P. & Gefen D. (2005). Psychological Contract Violation in Online Marketplaces:
Antecedents, Consequences, and Moderating Role. Information Systems
Research. Vol. 16, No. 4. Retrieved from
https://pubsonline.informs.org/doi/10.1287/isre.1050.0065
York, M. (2019). 6 ways to increase profits for your small business. Retrieved from
https://www.thebalancesmb.com/steps-to-increase-small-business-profits-
1200720
Zambas, J. (2017). 15 Key Benefits of Having a Website for Your Business. Retrieved
from https://www.careeraddict.com/business-website-benefits

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Appendices
Proposal and Interview Letter
February 26, 2021
Mrs. Elma Ligmayo
Owner
Elma’s Online Shopping

Dear Mrs. Elma Ligmayo,

The names shown below are BS Civil Engineering and BS Architecture students from the
school of Saint Louis University. We are currently enrolled in the class called Living in
the IT era. As a partial requirement of course, we are assigned to make a business
case.
The project claims to conduct a business case where in we, the students will investigate
technological problems of your business and we will provide a proposal that can help
the development of your business. That is, if the owner would want the business
proposal for future enhancement.
We will present to you the details and scope of the proposal.
The information or data gathered in this project will be kept confidential and solely for
the purpose of the project only.
We would highly appreciate the time and generosity you would be extending.
Thank you very much.
Respectfully yours,

Prof. Wilfred B. Bambico, PhD (SciEd)


wbbambico@slu.edu.ph
GIT Instructor

Magdaong, Jason
Lacaden, Sam
Miravalles, Ariel
Montes, Lambert
Olimon, Vhinz Angelo
Pascual, John Patrick

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Valiente, Jasper
Facebook platform of Elma’s Online Shopping
https://www.facebook.com/ElmaPallay

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Questionnaire and answers
BUSINESS CASE INTERVIEW QUESTION: Elma’s Online Shopping
HISTORY OF THE COMPANY
 When and how did the business open? What made the owner start this kind of
business?
The bussiness was opened during covid pandemic in 2019 where in I was having
a problem with financial needs
COMPANY INFORMATION
 What are the basic rules of the bussiness?
BUSINESS RULES
6. I always have a record of purchased items or receipt in case of situations.
7. I entertain and answer question from any customers.
8. Only posted items will be purchased by the customers.
9. I always provide descriptions and price of the items.
10.There is no returning of products once it is purchased
 How many employees does bussiness have?
Only me and my supplier
SERVICES
 What kind of service does your business do?
Endorsing and selling products such as bags, clothes, toys and shoes.
 What is the timeframe for deliveries?
8:00 am – 5:00 pm delivery of items
SITUATION
 Does the business have encountered any problems? What are these problems?
Unorganized recording of items, causing the items to lose
Damaged items
Miscounting of items
Bogus costumers
 In case of any accidents that might happen, how can you deal with the problem?
How will you know who is responsible for the said incident?
In case the items are damaged, I will look at the receipt to confirm and replace
another same item.

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 Is your company only online based or can it be done through pick-ups or take in
orders possible?
Yes, it is online based
 What is your action in case that the deliverer will be lost and unable to find the
location of the costumer?
That would be the costumer’s fault

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