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E-commerce case study - Online Music Bussiness.

Extracts from this document...

Introduction

´╗┐ASSIGMENT NAME: business skills for commerce. STUDENT ID: STU STUDENT NAME: 1. STRUCTURE AND BUSINESS AIMS 1.1 aims of jazz music Jazz music aim is to introduce to a web site to their business model and adopt e-commerce to their business. E-commerce will increase jazz music customer base and sales as customers will be able to buy music at any time of the day. They want to produce mp3 which will be then sold online through their website. This is in spite of its customers showing concern as mp3 has lower quality than the traditional formats. However the benefits of e-commerce are more than the drawbacks. To compete in today?s word jazz music need to adopt to new ways of doing business. 1.2 jazz music structure Figure 1: current jazz music structure. Jazz music is a small independent company owned by two partners. It has been in existence for 20 years. Its specialisation is producing music in vinyl and cd which are sold directly on the phone by retailers. The cd and vinyl are produced by outside parties. Recording equipment is hired to record the music. Invoicing and payment is done by manual process using a pc. Jazz music is a private organisation in partnership and therefore the reliability falls on both partners. Its stake holders are the users, artist, government, digital enables, hardware industry, public interest groups, retailers, and collecting societies. 1.2 .1 structure of music industry The diagram below shows a typical music industry structure, with an explanation of the different entities and explanations of how they relate to each other below it. Figure 2: the structure of music industry. Source: http://www.planetoftunes.com/industry/industry_structure.htm Artists and composers They are the creators and the ones who possess the talent for music. They perform in concerts and in recording studios. Artists need good songs to perform and sometimes they need composers to create or compose the songs. ...read more.

Middle

2.3 Cost of e-commerce Some of the costs for jazz music to implement e-commerce may be as follows: Cost of technology E-commerce needs a high speed connection to the internet and getting such may be expensive. The other cost will come from purchasing extra computers and software. Payment systems will be needed to handle the transaction which will be borrowed at a price. The most expensive being using an online bank. ( Addul, R. feasibility study-commerce [www.robabdul.com] [accessed October, 2011]) Cost of technological development The right expertise will required to design an e-commerce solution up to its implementation. However jazz music will have to obtain hosting services. These are sometime expensive to get. ( Addul, R. feasibility study-commerce [www.robabdul.com] [accessed October, 2011]) Cost in training employees Employees need to be trained in the new system. The company will have to train its employees by either doing it in house by hiring someone to train them, or enrol them on a course. All this will cost money. Running costs E-commerce systems need to be maintained constantly for improved performance. Jazz music will have to maintain the computers and printers in their office. This will be by finding an IT support company as opposed to hiring someone full time. This is bearing in mind that the system will normally break down once in while. (Addul, R. feasibility study-commerce [www.robabdul.com] [accessed October, 2011]) 3.0 ECOMMERCE SOLUTION 3.1 Business Objectives Before any business is launched the owner need to or must have some aims and a clear Idea of what he or she wants to accomplish. For example he would say ??I want to be the biggest retailer on online?? and then he would work towards this. So objectives are the listed targets to achieve success or aims in an e-commerce. It could also be a mission statement of what the business will stand for, in return this will be the basis stakeholders can measure themselves, be in productivity or performance. ...read more.

Conclusion

In addition there?s trading standards, freedom of information act and copyright legislation. 3.5 DESIGN EVALUATION The design meets the set requirements for e-commerce. however design has been tailored for ease of implementation and set up. For example, instead of getting a website developer to design the website from scratch, we have decided to use turn-key solutions instead. This approach may have the disadvantage of limiting customisation of the website but still it?s a cheaper way of quickly launching a website. An onsite server would be best for the design but this might cost more as well as the server will have to be bought and jazz music will have to employ someone to maintain and manage the server as well. The turn-key option includes all this in a package and hence it is probably the best for jazz music to adopt. The design has also talked about printers and has suggested two more computers to be bought. Jazz music has no printer at the moment and for e-commerce to work, printer may have to be purchased. One pc exits and it has been doing its job but it may not be enough in implementing the solution and hence the purchase of two more is adequate. For the security and back-end system, jazz music will have to buy trust services where by facilities like payment systems, secure transactions, servers? maintenance and communication are included in the bundle. Biography: Adam, Z.R (2003) E-commerce and e-business. Addul, R . Feasibility study-commerce [www.robabdul.com] [accessed October, 2011]) Chaffey, D. (2009) E-business and e-commerce. 4th ed. United Kingdom: FT prentice hall. http://www.microsoft.com/OEM/en/products/servers/Pages/windows_sbs_2011_standard_build.aspx. [Accessed November 2011] https://www.unibulmerchantservices.com/ecommerce-risk-management-guide,[accessed 11/10/2011] http://www.dell.com/uk/business/p/desktops-n-workstation. [Accessed October 2011] http://faculty.haas.berkeley.edu/meghan/299/Project_example_Music.pdf [accessed 04/11/11]. Korper, S et al. (2001) Building the e-commerce empire. 2nd ed. USA: academic press. Lubbe, S. (2004) The economic and social impacts of e-commerce. USA: Idea Group Publishing www.articlesbase.com [accessed on October 2011] www.cisco.com. [accessed October 2011] University of California Downloadable Music: How will it transform the Recording Industry? Pdf available at: http://faculty.haas.berkeley.edu/meghan/299/Project_example_Music.pdf [accessed November 2011]. www.articlesbase.com [accessed on October 2011] http://www.planetoftunes.com/industry/industry_structure.htm [accessed 27/05/12] ...read more.

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