Unit 1 Business Skills for e-commerce
To enable learners to apply the business skills needed to design an e-Commerce solution for an organization.
· Unit abstract
Organizations of all sizes, structures, and aims can benefit from the opportunities made available by the intelligent application of communication-based technologies and there will always be a need for practitioners who have a good understanding of those technologies. E-Commerce has become a vital part of an organization’s ability to reach out to the marketplace and position itself to maximize commercial returns on investment.
Poor choices of technology and processes will result in poorly managed opportunities which could loss of business, market position, and profitability. Learners will investigate the values of business skills by exploring current, topical examples of e-Commerce practices. Learners will consider how to design an e-commerce solution to the best advantage of the organization and its stakeholders (for example employees, suppliers, and customers). Learners will explore current legislation concerning e-Commerce based trading, organizational responsibilities, and finance/payment systems.
The first part of the unit considers the structure and aims of organizations to better understand how they could benefit from an e-Commerce structure. Then follows an opportunity to investigate and evaluate the impact of e-Commerce systems on organizations and their stakeholders. Once these areas have been studied the learner will be in a position to examine the process of the development of an e-Commerce presence followed by the opportunity to design an e-Commerce system.
Unit 1 Business Skills for e-Commerce
· Learning outcomes
ON SUCCESSFUL COMPLETION OF THIS UNIT A LEARNER WILL:
- Understand the structure and aims of business organizations
- Understand the impact of e-Commerce
- Be able to design e-Commerce solutions.
Unit 1 Business Skills for e-Commerce
UNIT CONTENT
1 UNDERSTAND THE STRUCTURE AND AIMS OF BUSINESS ORGANISATIONS
Organizations: type eg private, public, voluntary, charitable business organizations; aims eg profit, market share, Return on Capital Employed (ROCE), sales; growth, customer service; Political, Economic, Social and Technological (PEST) analysis
Stakeholders: identification of stakeholders; satisfying stakeholder objectives; pluralist perspectives; the concept of corporate mission objectives and policies
Business functions: key internal business functions eg marketing, sales, accounting, administration; Management Information Systems (MIS), operations
Unit 1 Business Skills for e-Commerce
2 UNDERSTAND THE IMPACT OF E-COMMERCE
Consumer impact: empowered customers eg online sales, direct communication with customers, greater choice, lower prices, availability of new products; global markets; new marketing models; on-line advertising
Business impact: global business and consumer markets; issues eg challenge of new technology, security issues, impact and implications of dealing with customers on-line, creating new distribution channels, greater competition, the challenge to monopoly power, re-training of staff, lower overheads, new selling chains; legislation
Unit 1 Business Skills for e-Commerce
3 BE ABLE TO DESIGN E-COMMERCE SOLUTIONS
Objectives: business idea eg unique selling proposition, business-to-business opportunities, business to consumer markets; domain name
Market research: the purpose of research eg identifying information sources, online and offline competition; types of research eg primary, secondary
Target markets: market analysis eg size, characteristics, dynamics, competitors, historical background, emerging trends, market share, market segmentation
Key processes: technology requirements eg hardware, software, security, maintenance, back end systems; supply sources; distribution channels
e-Commerce: payment systems eg electronic cheque, PayPal, NoChex, credit or debit cards; start-up capital; working capital; funding sources
Security: key areas eg prevention of hacking, viruses, identity theft, firewall, impact on site performance, Secure Sockets Layer (SSL), Secure HTTP (HTTPS), digital certificates, strong passwords, alternative authentication methods
Legislation: relevant legislation eg Data Protection Act 1998, Computer Misuse Act 1990, Consumer Credit Act 1974, Trading Standards, Freedom of Information Act 2000, copyright legislation
Unit 1 Business Skills for e-Commerce
Learning outcomes and assessment criteria
| Learning outcomes On successful completion of this unit a learner will: | Assessment criteria for passing The learner can: |
| LO1 Understand the structure and aims of business organizations | assess an organization’s core business functions evaluate an organization’s business aims and show how they relate to stakeholders |
| LO2 Understand the impact of e-Commerce | analyze the impact, including the risks, of introducing an e-commerce system to an organization discuss the global impact of e-Commerce on society |
| LO3 Be able to design e-Commerce solutions | investigate the market potential for an e-Commerce opportunity evaluate current e-Commerce systems in use by organizations discuss the financial implications of an e-Commerce solution design an e-Commerce solution evaluate the suitability of an e-Commerce solution. |
Unit 1 Business Skills for e-Commerce
Guidance
LINKS TO NATIONAL OCCUPATIONAL STANDARDS, OTHER BTEC UNITS, OTHER BTEC QUALIFICATIONS, AND OTHER RELEVANT UNITS AND QUALIFICATIONS
The learning outcomes associated with this unit are closely linked with:
| Level 3 | Level 4 | Level 5 |
| Unit 3: Information Systems | Unit 16: e-Commerce Technologies | Unit 29: e-Commerce Strategy |
| Unit 8: e-Commerce | Unit 30: Information Systems in Organisations | |
| Unit 33: Exploring Business Activity | Unit 2 Computer Systems | |
| Unit 34: Business Resources |
This unit has links to the Level 4 and Level 5 National Occupational Standards for IT and Telecoms Professionals, particularly the areas of competence of:
- Systems Analysis
- Systems Design
- Systems Development
- Change and Release Management
- Supplier Management.
ESSENTIAL REQUIREMENTS
Learners must have access to a wide range of material covering current and proposed
e-Commerce implementations encompassing a number of organizations from small start-ups to large multi-nationals. The material can be sourced online, for example, organization websites, journals, newspapers, broadcast material, and visiting speakers who are experts in their subject area.
RESOURCES
BOOKS
Chaffey D – E-business and E-Commerce Management, Fourth Edition (FT Prentice Hall, 2009) ISBN 0273719602
Courtland B, Thill J – Business in Action (Pearson, 2010) ISBN 0132546884
Hall D, Jones R, Raffo C, Anderton A, Chambers I and Gray D – Business Studies (Causeway Press, 2008) ISBN 1405892315
Laudon K, Guercio Traver C – E-Commerce 2010: International Version: Business, Technology, Society (Pearson, 2009) ISBN 0135090784
Malmsten E, Leander K, Portanger E, and Drazin C – Boo Hoo: A Dot.com Story from Concept to Catastrophe (Arrow Books Ltd, 2002) ISBN 0099418371
Rich J – Design and Launch an eCommerce Business in a Week (Entrepreneur Magazine’s Click Starts) (Entrepreneur Press, 2008) ISBN 1599181835
Ridderstrale J and Nordstrom K – Funky Business Forever (Prentice Hall, 2007) ISBN 0273714139
Stanwick P, Stanwick S – Understanding Business Ethics (Prentice Hall, 2008) ISBN 013173542X
Vise D – The Google Story (Pan, 2008) ISBN 0330508121
Wood G and Mellahi K – The Ethical Business: Possibilities, Challenges, and Controversies
(Palgrave Macmillan, 2002) ISBN 0333949935
JOURNALS
Business Review Magazine (Phillip Allan Publishers – see www.phillipallan.co.uk)
The Economist (The Economist Newspaper Group, Inc)
EMPLOYER ENGAGEMENT AND VOCATIONAL CONTEXTS
Any opportunity to study an existing e-Commerce implementation, either developing or mature would be advantageous.
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