UNIT 29: Internet and E-Business

This report provides a comprehensive analysis of Ocado.com's e-business model within the context of UNIT 29: Internet and E-Business. It examines the environment in which e-business is conducted, detailing various transaction types (B2C, B2B, C2C, C2B) and their advantages and barriers. The report addresses safety and legislative issues faced by Ocado, outlining security measures and relevant legislation like the Electronic Communications Act 2000 and Data Protection Act 1998. Different communication modes employed by Ocado are discussed, including formal communications (terms and conditions) and informal methods (FAQs, online chat). The importance of internet technologies (TCP/IP, client/server computing, packet switching) and the features of HTML are explained. The report also analyzes the utility of client-server systems and search engines, along with the use of intranets and extranets. Different e-business models (affiliate, e-distributor, e-procurement, auction, exchange) are explored, with a focus on Ocado's affiliate model. The report concludes with a discussion of future developments in e-business models, emphasizing personalized services and the increasing importance of social media and mobile applications. Finally, key elements of good web design and their impact on e-business success are analyzed, along with issues concerning website usability.

UNIT 29. INTERNET AND E-
BUSINESS

INTRODUCTION
Electronic business refers to operating the business on digital platform and administering
the entire process through internet. It is often referred to in conjunction with e-commerce,
however it is inclusive of both sale of goods as well as services. It is important to note that e-
business also provides for technical assistance and customer support services through the
medium of internet. All the payments to suppliers, recruitment, management of production and
so on are undertaken online and in a speedy manner.
In today's world majority of corporations develop their strategies and operations while
considering the option of internet. The primary rationale behind the same is wide reach of
internet as well as its availability, frequently changing capabilities and such other processes
which have made various processes simpler and convenient. Hence, in the present report focuses
on the scope of e-business in respect to Ocado.com and the available e-business models to the
management.
TASK 1
1.1 Environment in which e-business is conducted and types of business
transaction
E-business is the result of advancement in modern technologies and must a large extent
replaced the traditional forms of businesses. It has also enabled the companies to expand globally
without physically moving out of own country. In addition, it has also made the internal
operations of the company simpler and convenient. For instance, with the use of Intranet,
organisations can establish an effective communication system for transmission and safeguarding
the data as well as information.
Another advantage which accompanies this process is that all the operations and functions
could be undertaken in a faster and precise manner (Oliveira and Martins, 2010). It is interesting
to note that the UK retail sector has reflected a progression of 70% and has attained the position
of one of the largest and effective methods of revenue generation. Also, it has a direct impact on
the society in the form of patterns of customer behaviour, which can be witnessed from online
sales demand. Different business transaction types which can be pursued by online businesses
are:
4

• Business-to-consumer (B2C): Under this model of business the organisations directly
sell their respective products or services to the consumer. There is no role of intermediary
in such business models. In respect to e-business if a company is engaged in selling its
own products through its own website directly to the end users, then this model could be
said to have followed. Ocado has adopted a unique business model in pursuance to which
it is selling its own products through the official website along with the products of other
brands (Ocado at a glance, 2017).
• Business to Business (B2B): This process refers to interaction of two businesses for sale
or purchase of goods/services, and the medium of this interaction is internet (Veit and et.
al., 2014). In such business models a supply chain may witness multiple transactions. An
effective commercial channel is developed through this model of business.
• Consumer to Consumer (C2C): The transactions under this model of business are
undertaken directly between consumers. Thus, through the medium of internet a
consumer is enabled to sell its products directly to another consumer, with no interference
from the side of middleman.
• Consumer to Business (C2B): This is the newest forms of business which has found
great significance with e-businesses. In pursuance to this model, consumers or end users
create value or demand of a product through the means of e-business.
1.2 Advantages and Barriers for e-businesses
Like any other business type, e-businesses are also prone to both benefits and barriers,
which the organisations are required to consider while pursuing the decision to go online. Some
of the significant benefits which Ocado.com has realised are:
• Reduced cost of transaction: Selling the products online or procuring them through an
online platform reduces the cost which is incurred is respect to transactions by the
businesses as well as the consumers.
• Increasing market share: A business organization can reach to a wider set of consumers
as it can reach to people at distant places through internet. With the assistance of this
platform increasing number of potential consumers can be reached (Andam, 2014).
Moreover, the consumers can also make a purchase as per their convenience.
5

• Increase the effectiveness of promotional offers: Different form of promotional
activities shall produce enhanced effect and have a potential to reach an increased
number of potential consumers.
However, this process is also prone to barriers which may pose certain difficulties for the
businesses to mark their presence online:
• Skilled Recruitment: All the employees shall be appraised with the concept of e-
business and shall be capable to conduct operations on this platform. Hence, it may pose
to be a difficulty to find employees with such specific skills and capabilities.
• Constant Maintenance: There is a high cost which is required to be incurred towards
constant maintenance of the online platform. The website requires constant monitoring
and modifications with change in different aspects.
• Trust for e-business transactions: There are still consumers which do not trust the
online payment modes and find it difficult to make payments using such medium
(Oliveira and Martins, 2010). Thus, there shall be a loss of customers in light of this fact.
1.3 Safety and Legislative issues faced by Ocado.com
Ocado.com has undertaken various measures for protection of its data and confidential
information with assistance of varied methods. This implies that both the business and the
consumers are impacted by the security issues which are prevalent in this sector. Lack of privacy
or trust issues could affect both customers and businesses as it may be difficult for them to verify
each other. Exchange of data may be impacted by viruses or malware programs and so on. To
deal with these issues Ocado has undertaken the following measures:
• Firewalls: Installation of firewall shall restrict the accessibility of untrusted networks,
• Digital Signature: This is an encryption technique which enables the business to verify
the authenticity of consumers and provide evidence for establishing contractual relations.
• Digital Certificates: This authorizes e-businesses to secure e-commerce and undertake
communication with the use of internet platform. Hence, both the company and their
consumers are enabled to make use of security applications in respect to Public Key
Infrastructure (PKI).
Some of the legislative initiatives for securing this process of e-business can also be
found in the statutes of Electronic Communications Act, 2000 (Ifinedo, 2011). The primary
objective of this act is ensuring the authenticity of digital signatures and other related
6

communications. Further, Data Protection Act 1998 imposed an obligation on the businesses to
secure all the data and manage the same in an effective manner.
Disadvantages of security and legislation
 Security enhances the burden of the company and it also directs the entity to adopt new
procedure.
 Security aspects needs to have constant vigilance; hence it becomes difficult to manage.
 Legislation needs to be managed in such a manner so that it can reduce the legal aspects;
however lack of such thing can impose other burden of the company.
1.4 Modes of Communication
While undertaking an e-business the business enterprise is required to communicate with
the consumers at various instances, which can be formal or informal in nature. Some of the
specific methods which has been adopted by Ocado are:
• Terms and conditions: This is one of the formal communications which is made by the
company to its consumers in the form of a document. Through this mode, the consumer is
informed about all the terms and conditions on the basis of which products shall be sold
and the services shall be provided to the consumers.
• Shopping Cart: This option of the website acts as an actual cart in a shopping mall
wherein the consumers can drop all the selected items to be purchase and review the
same before finally buying them (Combe, 2012).
• Customer follow up: This communication is either through an option of the website or
personal emails, wherein the consumers are required to give their feedback on the way
services have been provided.
• FAQs: This is one of the most common method of communication wherein the users are
free to post their query which shall be responded by the representatives of Ocado. This is
the means of communicating with other customers as well who may have a similar query
and hence, is reflects all the questions and their answers.
Further, online chat, social media and emails are the most prominent sources that can be
used in the domain of communication. Hence, Ocado can use such sources so that to
communicate information from one source to another. The sources are also essential in terms
of adopting new things in company’s practices and operations. Such sources can also be used
for formal and informal communication aspects.
7

TASK 2
2.1 Importance of Internet technologies
There are various internet technologies which are being used by Ocado for providing
efficient services and maintaining confidentiality of the data. Moreover, these internet
technologies act as an interface between different users and allow accessibility as well as
exchange of relevant information between two sources (Gloor, 2012). Internet refers to a
network, which recognizes each computer system with a different IP address. A domain name
server (DNS) represents the IP Address.
• Transmission Control Protocol and Internet Protocol (TCP/IP): This enables the
company to consistently transmit reliable data over a network between client and the
server. Hence, when any information is received by the system then it is saved in the
name of IP address. Moreover, it becomes convenient for the recipient user to categorize
the all the data received and manage all the data.
• Client/Server Computing: This represents association which is established between two
distinct computer systems. In this setup, one of the programs act as a client for generating
requests in relation to a service, whereas the other acts as a server. This ensures effective
management of resources (Srivastava and Teo, 2010.)
• Packet Switching in Internet: It has been observed that internet users have been
increasing daily and in order to manage this ever-increasing traffic Ocado has adopted
packet switching in internet.
2.2 Features of HTML
The Hypertext Markup Language (HTML) is the medium through which a document is
created to be read by special software programs. To access HTML documents the first browser
was created in the name of WorldWide Web. The general structure of these documents
comprises of Title head and Body, wherein the former consists of a Title to identify the initial
part of the coded document and the latter in the section where most of the work in the form of
text, images and such elements are undertaken. Some of the features of HTML are:
• Context Menus: It assists in formation of context menus in applications and varied web
pages.
8

• Eliminate requirement of href: The need to place anchor on web applications is
eliminated and use of tags is allowed (Kloch, Petersen and Madsen, 2011).
• HTML new form types: The specifications of datetime, month, week, email is present in
the form of standard inputs.
• Canvas: This enables addition of images and graphs, apart from other elements on the
web page.
 <head>: This is useful in terms of defining information about the document
 <meta>: This defines metadata about an HTML document
 <basefont>: This is useful in specifying a default color, size and font for all text in a
document.
Thus, all the tags are useful for different purposes as per the requirement of the information.
https://www.google.co.uk/search?
q=html+codes&espv=2&source=lnms&tbm=isch&sa=X&ved=0ahUKEwi8n4bJmojTAhXDLM
AKHfhrCXoQ_AUIBigB&biw=1366&bih=599#tbm=isch&q=html+tags&*&imgrc=CRLWO1n
_lZMSRM:
9

2.3 Utility of client server or web browser and the function of search engine
The web browser or server both together legal act is as a client-server system and create
the connection between server and client. All the designed and database maintained in the central
part of a computer which is known as a server. Further, it can be used by a single person who
designed the websites. While the client is those who use websites, which is designed by the
server. There are many clients of single websites but its server is only one (Bordonaba-Juste,
Lucia-Palacios, and Polo-Redondo, 2012).
The basic function of client-server and browser is to works a client to a website request
and get data and information of any specific websites, then it provides access to over them. On
the other hand, purpose of the browser is to transfer information on WWW (World wide web)
network and respond the present information. Browser converts all the data which was taken
from the server into an understandable information.
Function of search engine: Search Engine function is to allow its internet users to search
particular information from web based keywords which is entered by user. Further its function is
to locate, store, and rank the value of data and show it to users.
10

https://www.google.co.uk/search?
q=client+server+network&espv=2&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjf1LqJm4jT
AhWHB8AKHZ_hAJ4Q_AUIBigB&biw=1366&bih=599#imgrc=Hqsa8KJtz11oaM:
sThere is some important role of search engine that it stores information from all the
websites. After storing information, it can be searched by user them it a form of history and
bookmarks.
2.4 Used of intranet and extra-net
Modes of connectivity discussed as Intranet and extranet mode they are the different tools
of connectivity which is different from the internet. Intranet can be being easily connected
anywhere till its limit which set by a firm per its preference. Apart from network internet, it has
separate information technology infrastructure and it is also a restricted type of computer
network (Gloor, 2012).
On the other hand, an extranet is can connect two or more internets at very limited extent
because it is also a restricted computer network. There are high security and internet network not
followed the extranet. It helps different type of organization in making cooperation when then
work together on any project. It also connects different stakeholder with the organization safely
and securely.
11

Advantage and disadvantage of intranet
 advantage of intranet is that it offers chance to keep every concerned single informed
about the regardless of the location
disadvantage of intranet
 one of the major disadvantage is that it there is risk of security corporate information
resources. It is quite risky for keeping information on intranet.
 Advantage of extranet is that it increase the speed of all transaction for be complete and
their is less chance of mistake.
 disadvantage of extranet is that time is needed for training the employee for using its
tools of network
TASK 3
3.1 Different e-business model
There are various e-business models which can be adopted by a company for generation
of maximum revenue and thereby earning profits. The following are some of the e-business
model:
• Affiliate Model: Under this business model the concerned businesses operate to receive
recommendation fees or a percentage of sales revenue. The primary focus of these
entities is on development of effective relationship. Ocado is operating based on this
model.
• E-distributor model: These businesses are engaged in delivering the goods or services
which have been ordered by the customers online.
• E-Procurement Model: in pursuance to this model an individual consumer is enabled to
make a purchase in bulk and enjoy a group discount (Bordonaba-Juste, Lucia-Palacios
and Polo-Redondo, 2012).
• Auction Model: Sellers and bidders are enabled to come on a single platform to offer
prices which are dynamic in nature.
• Exchange Model: this model offers a broad range of services for undertaking transaction
which ranges from market valuation of products to concessions.
In addition to this, it can be described the development models such as the e-business, e
distributor plays very significance role because it consider a common source for generating
12