• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18
  19. 19
  20. 20
  21. 21

Analyse the contribution IT makes to the delivery of physical products from online retailers and discuss how this relates to the requirements of the consumer.

Extracts from this document...


Managing Information and Operations ASSIGNMENT TWO - MG5085 Date of submission: 10th January 2005 Tutor: Mr Mark Henry Compiled by: Prerna Thakkar Student Number: 0428819 Table of Contents Page Introduction 2 The Reality of E-Commerce 4 Internet Commerce 5 Convenience of Online Shopping 5 Consumer's Demands 7 IT Contribution 8 The Details Behind the Scenes 12 The Customer Perspective 15 Innovation v/s Technological Progress 16 Conclusion 17 Bibliography 19 Word Count 19 Topic A: Analyse the contribution IT makes to the delivery of physical products from online retailers and discuss how this relates to the requirements of the consumer. Introduction: The 'dot-com' era is now fast receding into the past. But, throughout the world, managers are still grappling with turning the e-business concept into a business reality. Companies in some sectors have demonstrated success. In Europe, the low cost airlines such as easyJet and Ryanair have succeeded in migrating the majority of their customers to online booking in the space of a few years, while acquiring many new customers. Other companies have used the internet to gain competitive advantage. For example, the supermarket Tesco has launched a market-leading e-commerce service for customers and also uses the internet extensively for purchasing (Tesco Information Exchange). Although many start-up companies which adopted innovative business models, have now failed, some are now achieving profitability. For example, now operating profitability across many countries in Europe include lastminute (main focus travel: www.lastminute.com), Kelkoo (consumer retail: www.kelkoo.com) and Wanadoo (Internet Service Provider: www.wanadoo.com). In some traditional industries, the impact of the internet has been immense. Banking, for example, shows that in a seven and half year period (May 1995 - December 2002), the number of households using online banking worldwide increased to 100 million as around 6,000 different financial institutions offered web based banking. (Source: Online Banking Report, Number 89, 10 December 2002). Meanwhile, many business-business companies and governments have found encouraging their customers to use their online services to be much more challenging. ...read more.


The web site is then connected to the back office system where the payments are processed and the fulfilment of the order is actioned. The e-shop having taken an order needs to ensure that the goods that have already been paid for are despatched rapidly and reliably. The basic requirement for the back office is a warehouse with appropriate arrangements for the despatch of goods, replenishment of stock and processing of returns. Different servers are required which combine the applications logic and database storage for different requirements. These may be physically separate servers or may be combined. This can be clearly explained with the help of the following diagram1: E-Business Architecture for the B2C Company Payment Catalogue ERP Web Browser Web Merchant INTERNET Personalisation CRM The purpose of each of the servers is as follows: Web server - manages HTTP (Hypertext Transfer Protocol) requests from the customer and acts as a passive broker to other servers. Returns or serves web pages. Merchant server - This is the main location of the application logic which integrates the entire application by making requests to the other servers. Personalisation server - provides tailored content and may be part of commerce server functionality. Payment server - manages payment systems and secure transactions Catalogue server - A document management server that displays detailed product information and technical specifications. CRM server - stores information on all customer contacts ERP server - required for information on stock availability and pricing from the customer. This is also accessed for sales order processing and histories along with logistics for distribution. Once the order is placed by the customer, EDI transfers the structured data from one business information to another computer system. The typical example would be supermarkets that use the EDI to replenish their warehouses. EDI has also enabled the online retailers to move to just-in-time providing faster speed of transaction, error reduction and cost cutting. ...read more.


Offering a tailored design to the customer account and personalising it could attract the customer to re-visit the website. Retailers can also provide discounted offers to their patrons based on the shopping patterns captured on earlier purchases. Besides offering the above, the retailer must be innovative in its approach to sell the products by adopting smarter and more efficient technologies to make the user experience a memorable one. Innovation could further take the form of technological enhancements enabling the consumer to access the sites to make purchases from a PDA (personal digital assistant) or GPRS enabled mobile phones. This would enable customers to make productive use of their time whilst on the move. With these and many more innovations lined up the possibilities are endless. Conclusion: Information Technology brings a combination of new opportunities, challenges, changing cost structures, new customers, and faster response times. E-commerce has already demonstrated its great benefit for both consumers and merchants. As time goes on, the growth of domestic Internet access, and the increasing involvement of mobile devices (m-commerce) will yield more potential customers. Nonetheless, security clearly represents a significant concern given the range of potential threats and the limited extent to which suitable precautions are followed in some cases. While e-retailing is less turbulent than in previous years, we can conclude that the future of e-retailing will largely be in the hands of the multi-channel operators. The onus is upon operators to make appropriate use of technologies to reduce risk, and to assist in improving customer awareness of genuine risks in order to increase their confidence in using the services. Learning from the dynamics of population growth, entrepreneurs can evaluate the market they are attempting to enter, determine which stage on the evolutionary model dominates the environment and then understand where the competitive pressures will lie. The IMRG says that by 2009, a quarter of all UK shopping will be conducted via the internet or mobile devices, in a market worth �80bn. A further 20% of purchases will be influenced by online research. The question is what kind of growth we will see. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Internet section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Internet essays

  1. Marked by a teacher

    Benefits of an Online Business Presence

    3 star(s)

    Customers can check stocks online. If an item is currently out of stock many businesses put a note on the site and email the customer when stocks are replenished. One example of a business that has this benefit is ebuyer.com.

  2. Marked by a teacher

    ict online service

    To send people messages you have to have their email address. Also you can attach files which allow you to send photos, music, work, etc. This is very useful as you don't have to meet up with the person you can just simply send them the work.

  1. An explanation of the impact of availability of electronic information on individuals and society.

    The college will be closed. A reason why some people may not want internet access may be because they are scared as they may not understand the internet or because of the cost. And argument which is often used by the elderly is that they have got so far through life without it they can manage a little bit longer.

  2. Evaluation of Two Commercial Multimedia products. oth products are professional animations which have ...

    The text made the story easy to understand which makes the animation suitable for its audience and informative. I will include to text in my animation to inform the story and to make my animation suitable for its audience. Overall the presentation of the story is very professional and the

  1. The Digital Native generation. The main themes of this report are how young ...

    Young people use a wide range of options to communicate such as instant message, chat, phone, SMS and face-to-face. They have been surrounded by digital media as they have grown up using computers, the internet, mobile phones and digital video games.

  2. Online Business Activity

    Virtual property tours The user can take a virtual tour of many places online. It enables anyone thinking of moving or renting accommodation to see exactly what the property looks like. The user can check the out city apartments. The virtual tower tours use modern graphical techniques to persuade the customer.

  1. Potential Disadvantages of an Online Business Presence

    The online presence can lose customers and there is chance that they never contact it again in the future. An online presence that may suffer such problem are zonepoint.co.uk Vulnerability to hostile attack Large businesses are threatened by phishing, spoof websites or denial of service attacks.

  2. ICT - services

    able to keep track of all payments that have been made and al future payments that will be made. There are plenty of advantages when people use online banking such as customers now hardly have to go into the bank for anything other than paying cheques, as people can now

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work