ITECH3301: E-Business and E-Commerce - SOP Case Study Proposal Report

This report presents an e-business and e-commerce proposal for the SOP case study, focusing on transforming their existing website to generate increased revenue. It recommends a B2C and B2B e-commerce model, utilizing direct sales and subscription revenue models. The proposal outlines the necessary network and communication infrastructure, emphasizing security measures like encryption, firewalls, and regular updates. It also covers e-marketing strategies, payment systems, privacy and ethical concerns, and legal issues. The report further discusses customer service considerations and methods for measuring the success of the proposed system, including the adoption of a hybrid cloud model for enhanced scalability and security.

Running Head: E-BUSINESS, E-COMMERCE: SOP CASE STUDY 1
E-Business, E-Commerce: SOP Case Study
Name
Date

E-BUSINESS, E-COMMERCE: SOP CASE STUDY 2
Contents
E-Commerce business models.....................................................................................................................3
E-commerce revenues models.....................................................................................................................3
Network and communications infrastructure...............................................................................................4
Applications (hardware and software).........................................................................................................5
Security assurance.......................................................................................................................................6
E-marketing requirements...........................................................................................................................6
Payment systems to be used........................................................................................................................7
Privacy and ethical concerns.......................................................................................................................7
Legal issues.................................................................................................................................................8
Customer Service issues..............................................................................................................................8
Measuring success of proposed system.......................................................................................................9
References.................................................................................................................................................10

E-BUSINESS, E-COMMERCE: SOP CASE STUDY 3
E-Commerce business models
Looking at the SPO case; they already have a website, but need to generate increased
revenues, given that their revenue has been fluctuating because government grants are not
guaranteed, neither are they fixed. As such, SPO needs to implement an e-commerce website that
is based on the Business to Consumer (B2C) model. The B2C business model is related to
transactions that bind businesses and end consumers that purchase products and services from
the business. This is mainly a type of e-commerce retail trade that happen online (Sharma,
2016). This is a justified model for the company to use because nearly half of its revenues come
from installing renewable energy systems to individual consumers such as homes. SOP should
also have a business to business (B2B) e-commerce model in which they provide services to
other businesses, as this also constitute a portion of their client clientele and customers. The B2B
model is one in which electronic transactions are related to the services and goods between
companies and organizations. This will ensure that SOP is able to deal with, and meet the needs
of consumers (existing and attract new customers) while also providing services to other
businesses in order to increase their revenues. The B2B model can be used to provide training to
organizations and other players in the sector for a fee and the company can target a global market
(Sreedhar, 2018)
E-commerce revenues models
SOP will need to derive revenue from her customers; this will be achieved by using a
suitable revenue model that complements the adopted e-Commerce business models. The
revenue models that it should use include the direct sales revenue model and the subscription
model. The direct sales revenue model is the most prevalent and suitable for the B2B e-
commerce model in which the company sells products and services directly to their consumers.
Because it will upgrade its website to be a purpose built e-commerce one, they will sell services
and products to consumers in a single step transaction and increase their revenues. This model is
also suitable for use in the B2B business model where they sell products and services to other
businesses. In the subscription model, the company will have clients sign up for services and
products and then charge these subscribers at scheduled, regular intervals. This model will

E-BUSINESS, E-COMMERCE: SOP CASE STUDY 4
especially be useful in guaranteeing the company revenues and which can be used for planning
because once there is subscription; the revenues will keep rolling (Keillor & Wilkinson, 2011).
This is suitable for both the B2B and the B2C model, especially because it is planning to
start training sessions for the customers. Those seeking education and training from SOP will
subscribe so they are charged a regular fee for the duration of the training. Further, businesses
and individuals that need advice on energy use and how they can reduce their energy
consumption will also benefit from the use of the subscription revenue model. In both cases, the
most suitable model is used for each business model and depending on the product and service
that the company is selling. The subscription model can be used with the digital content revenue
model in which the company generates content; in this case, advise on energy use and then sells
them to customers (Kamel, 2006). The content can be customized to meet the needs of various
customers; for instance, a firm that seeks to lower energy costs will get specific content, similar
to a firm that wants to invest in renewable energy sources or those that are seeking to be carbon
neutral. Because it seeks to go global and is in the green energy business, SOP can have choice
retailers and vendors use its website to advertise its products and gain from advertising revenue
to further boost its own revenue and diversify revenue sources.
Network and communications infrastructure
Implementing an e-commerce business model requires investment in the relevant
infrastructure to make it work and reap the benefits. SOP will need to invest in a network that
meets the needs of e-commerce and will include networks as well as equipment. The
infrastructure will need to support payment processing from its website, which means it must
have the capability to process payment methods such as credit and debit cards, mobile wallets,
and other payment processors such as PayPal. Safety is a very important aspect of the
infrastructure; this is because the company will be handling sensitive client information,
including credit cards and their personal information. As such, what is required is an encrypted
network and IT resources infrastructure that ensures the safety of users. This is to be
complemented with security features including physical and software based firewalls and anti-
malware software installed in all its facilities because it also needs to ensure its internal

E-BUSINESS, E-COMMERCE: SOP CASE STUDY 5
infrastructure is safe. The website itself must be safe with encryption, meaning that it must have
an SSL certificate to assure users that it is safe (Sterling, 2011).
The company needs to have an infrastructure in which the e-commerce website remains
running (uptime)and that it can support even heavy use (a situation where there are many
requests and transactions in the website at the same time). Because the company will need to
have a record of all the transactions related to its business and, it will need an enterprise database
system; essentially, an e-commerce website requires to be database driven so that all transactions
and activities that happen on its website are stored (Saleh, 2012). The e-commerce website and
its enterprise system itself need to have a backup to ensure business process continuity even in
the event that the physical host is unable to work. To meet these needs, the best solution is for
SOP to adopt a cloud model, specifically, a hybrid cloud model consisting of its own private
cloud (data center) linked to pubic clouds through a bridge. In the public cloud domain, SOP will
use the service models of SaaS (software as a service), IaaS (infrastructure as a service), and
PaaS (platform as a service). The public cloud services will ensure that it has sufficient and
scalable infrastructure to host and provide its services and products, including advice and
education. The private cloud will host its data and critical and sensitive information it wants to
keep greater control of. The public cloud will also be used to provide a backup of its existing
private cloud and IT resources (Hurwitz, 2012).
Applications (hardware and software)
The cloud infrastructure is preferred because it will ensure the company does not have to
spend a lot of resources in purchasing all the IT equipment it needs, as well as the accompanying
software such as ERP (enterprise resource planning). Further, it will help save the company from
the need to spend money in managing and maintaining its IT resources and equipment. The
cloud architecture is also suitable for its needs because of scalability and the pay per use policy;
when there is a greater demand for resources, including when there are many requests to the site,
the resources are automatically scaled up, ensuring no loss or degradation of service quality. At
its data center, SOP will need to invest in modern IT equipment that can handle its envisaged
business at an international level. It needs purpose built enterprise servers with operating
systems; to cut costs, it can use Open Source server software’s such as Linux that are modified

E-BUSINESS, E-COMMERCE: SOP CASE STUDY 6
and customized to meet its performance and security needs. In addition, work stations will also
be required for the users; the servers will require virtualization software so that SOP can
virtualize its existing hardware resources to meet growing needs. The network swill require
routers and wireless access points for ease of access to internet resources by staff (Mahmood,
2014)
Security assurance
Security is paramount for the internal needs of SOP as well as that of clients; using the
cloud model will enhance security as public cloud services providers are able to offer better
security than the company itself would. To enhance security, SOP will first need to sensitize its
staff and IT resource users on security issues, especially because the biggest cause of IT
insecurity and breaches are internal, caused by errors and mistake or deliberate acts. After
educating and sensitizing staff, SOP will need to implement strict security policies; this implies
setting credentials to access certain company resources and cloud services. The company will use
cloud services that can be exposed to greater security risks; it should therefore implement strong
API’s to ensure access to the cloud based services remain safe and secure. Access to certain
resources will require two step authentications to enhance safety and security.
The internal networks will need to be isolated, with sensitize resources isolated to ensure
they remain safe in the event of an attack in its private cloud (Goetsch, 2014). The networks will
have physical and software based firewalls, in addition to anti-malware software installed at the
servers and all work stations. Networks provide an additional security risk; SOP will need to
ensure the routers are strengthened through strong encrypted passwords as well as have the
firmware for the routers regularly updated. To ensure they are in control, SOP will need a
security policy that addresses all security issues; this policy ought to be reviewed regularly. The
networks should have network monitors installed to monitor traffic and avoid or detect attacks
before they occur. The security policy should include the need for frequent updating of all
security software and patches; this relates to administrative functions.

E-BUSINESS, E-COMMERCE: SOP CASE STUDY 7
E-marketing requirements
The website will be used for e-marketing, including the use of social media handles for
marketing. The firm will use SEO (search engine optimization) to ensure it ranks high during
searches and this will be helped by a block back linked to the website to enhance ranking in
search engines. SOP will use paid up digital advertising, including Google ad sense and social
media advertising to promote its products and services.
Payment systems to be used
The payment systems to be used should be convenient for both SOP and customers; the
best model for payment for subscribed services is credit card; this is because the client’s account
will be changed whether they have money or not, as long as the date falls due. For one off
services, such as giving advice or installing some equipment, payment by card or even check is
suitable. Further, other model of payment to be used includes mobile wallets and online payment
processors; these are also suitable for one-off purchases and payments. For B2B clients,
electronic funds transfer is also an accepted means of payment; however, this will not be done
from the portal. The money will have to reflect in the SOP account, with the system accepting
the transaction number and details. For security reasons, this payment method will be used only
for trusted partner companies. The proposed payment systems are meant to give the customers
convenience (Liebana-Cabanillas, Muñoz-Leiva, Sánchez-Fernández, & Martínez, 2014)
Privacy and ethical concerns
SOP recognizes the need to safely store and secure customer data and details; this will
start from the first time a customer interacts with the website. The website will be encrypted and
forms on the webpage will also store and transport customer information in an encrypted form to
the cloud storage databases. Further, the use of a public cloud to store customer information will
enhance security; internal policies will be set to limit who can access customer details and at
what time, with only a few people allowed remote access to such information after a two-step
authentication (Lunka, 2017). SOP must recognize the need to protect customer data as per the
data protection act; customer information will not be used or disclosed to any third parties,
including business partners or government without direct customer authorization or a court order.
Further, SOP must not use customer information and data for monetary gain, such as selling it to

E-BUSINESS, E-COMMERCE: SOP CASE STUDY 8
advertisers. At the website, cookies policies will be explicitly explained and only used to meet
customer needs, not to sell it to advertisers for [promotional purposes (Nguyen, 2016).
Legal issues
To limit any liability, the company will be incorporated, in addition to having the
business legally registered in Australia with the trademark also registered. The new business
model will fully comply with government legal regulations in terms of having a registration
certificate and trading licenses with a physical address. A law firm will be hired to provide legal
advice and handle any legal issues that may arise in the process of operationalizing the business.
Any products used from suppliers will have their trademarks and/ or copyrights used under
license/ permission from the supplier company and clients will be duly notified of this (Nasir,
2004). Further, permission will be sought to use their copyright and trademark products at the
website as this pertains to public display of trademarks; the permission must be in writing, and if
necessary, be renewed when due. For the e-commerce website users, a click wrap agreement
will be put in place to ensure SOP has legal remedy in the process of selling products and
services to clients. This click wrap agreement ensures SOP will be paid; waive legal warranties
implied in law, that users are above age 18, the venue for dispute resolution is disclosed as far as
regions are concerned. SOP will also comply with regulations, including truthful advertising and
that e-commerce/ web sales comply with relevant regional and national laws (Silver, 2012).
Customer Service issues
This is a mainstay of the business; happy customers’ equal’s revenues and growth; the
website, as stated earlier, will also be a portal for providing customer service, in addition to using
social media handles for SOP for customer service. The e-commerce portal can be accessed
from any location at any time meaning assisting customers will be a huge challenge. Customers
will require shopping assistance, which is easy to provide in physical stores, but is a challenge
for the e-commerce website: given the presence of competitors, customer service must be done
excellently because competitors are just a click away. Aspects such as trust during the payment
process and customer gratification pose challenges for the e-commerce web store. The solutions
to these challenges and others lie in the creative and innovative use of technology (Grabowski,
2013). The e-commerce website will have a chat feature with an operator always present most of

E-BUSINESS, E-COMMERCE: SOP CASE STUDY 9
the time (especially during the day) to deal with customer issues and inquiries. Through this
chat, customer issues can be handled immediately and promptly.
The website is also designed to be interactive such that customers can post a query or
issue through a web based form where the issue will be captured and action taken by a customer
service staff at an opportune moment. This will allow the customer issue to be handled by e-mail.
The website will also have a phone number and phone line that customers can call to get prompt
attention and service. The chat service will be developed with artificial intelligence such that
basic customer issues can be handled by the robot so that the customer feels their needs and
issues are being attended to. The linked social media handles will also be used for customer
service; the user generated content will be monitored and analyzed to be used by SOP for better
product offering. In addition, the social media handles will have the chat bots connected to
answer customer issues whenever there is no human operator available; this will ensure customer
issues are handled as promptly as possible. SOP will also implement a post-sale interaction as
part of its customer service using the available channels and for installed products, a
representative will visit the client to explain issues and offer personalized support. Customer
service will be offered in the context of a customer centric organizational strategy with
personalized (human mediated) customer service as well as technology mediated customer
service.
Measuring success of proposed system
The success of the system will be measured form a project management point of view; it
must be delivered within budget and time schedule, within the defined scope. The success will be
measured in terms of return on investment, and business and financial performance; including
number of visitors to the site, how many register, and how many are converted into customers.
Metrics of customer number retention and new customers acquired as well as financial
performance (revenues, profits, operating expenses) when using the e-commerce website will be
measured

E-BUSINESS, E-COMMERCE: SOP CASE STUDY 10
References
Goetsch, K. (2014). ECommerce in the cloud. Sebastopol, CA: O'Reilly Media.
Grabowski, P. (2013, June 14). Customer Service in Ecommerce – Challenges and Solutions.
Retrieved from https://ecommerceinsiders.com/customer-service-ecommerce-challenges-
solutions-988/
Hurwitz, J. (2012). Hybrid cloud computing for dummies. Hoboken, NJ: Wiley.
Kamel, S. (2006). Electronic business in developing countries: Opportunities and challenges.
Hershey, PA: Idea.
Keillor, B. D., & Wilkinson, T. J. (2011). International business in the 21st century. Santa
Barbara, CA: Praeger.
Liebana-Cabanillas, F., Muñoz-Leiva, F., Sánchez-Fernández, J., & Martínez, F. M.
(2014).Electronic payment systems for competitive advantage in e-commerce.
Lunka, R. (2170, November 20). Ethical Issues in eCommerce: Are you violating any of them?
Retrieved from https://www.nchannel.com/blog/ethical-issues-in-ecommerce/
Mahmood, Z. (2014). Cloud Computing: Challenges, Limitations and R & D Solutions. (Cloud
Computing.) Cham: Springer International Publishing.
Nasir, M. A. (2004). Legal issues involved in E-commerce. Ubiquity, 2004(February), 2-2.
doi:10.1145/985610.985607
Nguyen, K. (2016). Business Ethics in E-commerce (Unpublished doctoral dissertation).
Seinajoki University of Applied Sciences , Seinäjoki, Finland.
Saleh, A. A. (2012). A Proposed Framework based on Cloud Computing for Enhancing E-

E-BUSINESS, E-COMMERCE: SOP CASE STUDY 11
Commerce Applications. International Journal of Computer Applications, 59(5), 21-25.
doi:10.5120/9544-3993
Sharma, C. (2016, June 11). Business to Business to Consumer Model. Retrieved from
https://www.linkedin.com/pulse/business-consumer-model-chandru-sharma
Silver, J. (2012, November 18). Legal Issues for eCommerce Business — SitePoint. Retrieved
from https://www.sitepoint.com/issues-ecommerce-business/
Sreedhar, G. (2018). Improving e-commerce web applications through business intelligence
techniques.
Sterling, D. (2011). Dancing on a cloud: A framework for increasing business agility.
Bloomington, Ind.: Xlibris Corp.