FlashMobz: Business Challenges, E-commerce Transition, and Growth

This report analyzes the business and technical challenges faced by FlashMobz, a mobile phone retailer, during its acquisition of PhonesRUs and transition to e-commerce. The report identifies key issues such as insufficient IT integration, data migration problems, and the high cost of transition, along with e-commerce specific challenges including lack of verification measures, product returns, and customer loyalty. It also explores barriers to e-commerce implementation, including cost justification, security concerns, and cultural diversity. The report provides recommendations for overcoming these challenges, including cloud solutions, improved customer service, and multi-factor authentication, to ensure successful business expansion in the European market and a smooth transition to e-commerce. Finally, it presents a persuasive argument to Asif, the owner of FlashMobz, emphasizing the importance of addressing these issues for sustainable growth.

FlashMobz

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Identification of key business and technical challenges faced by FlashMobz in acquisition
of PhonesRUs and transition to e-commerce..............................................................................3
2. Barriers to implementation and how they can be overcome...................................................6
3 Present an inclusive and persuasive argument to Asif.............................................................8
CONCLUSION..............................................................................................................................10
Recommendation:.....................................................................................................................10
Online collaborative technologies:............................................................................................10
Reflection: ................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Information system refers to organizational, formal and socio-technical system which is
designed for collection, processing, storing and distributing information. It is software which
aids in organization and analysation of data (Agboh, 2015). FlashMobz and PhonesRUs are
considered in this report. FlashMobz is mobile phone and accessories retailer organization. This
organization is present in England and owner of this organization is Asif. They have bought
PhonesRUs, which has three outlets. Asif is looking forward to expand their business and also
launching e-commerce arm to business. This report includes key business of FlashMobz and
technical challenges which they have faced to acquire PhonesRUs and transition to e-commerce.
Furthermore, barriers in implementation are analysed and different ways in which they can be
tackled. At last, comprehensive and persuasive argument is presented to Asif.
1. Identification of key business and technical challenges faced by FlashMobz in acquisition of
PhonesRUs and transition to e-commerce.
FlashMobz is a mobile phone organization which also deals with their accessories.
Owner of this organization is Asif. It is present in England. It started with a single shop which
was then grown into chain of eleven. In July 2014, they bought business named PhonesRUs. It
also deals in mobile phones but have different IT systems. Asif is further looking forward to
enhance their business in European market for which need to have a fresh warehouse.
Warehouse refers to a building which is used for storage of goods. They are used by importers,
exporters, manufacturers wholesalers, etc.
Technical challenges refer to those problems which can be resolved by usage of
knowledge of experts. In such challenges, definition of problem is clear and solution is provided
by experts or leaders. They can be easily resolved. With reference to FlashMobz, technical
challenges which they faced in acquisition of PhonesRUs are mentioned below:
 Insufficient IT integration: There is lack of synchronisation as both FlashMobz and
PhoneRUs are having different IT systems. It can cause difficulties in carrying out day to
day operations and reduces efficiency of business (Al-Ajam and Md Nor, 2015).

 Data integration: As both the organizations i.e. FlashMobz and PhoneRUs are small
scale, so they store their information in systems rather than cloud. Without effective
integration of information systems, FlashMobz cannot retrieve information which is
distributed. By this, it becomes difficult to offer services.
 Data migration: Both these (FlashMobz and PhoneRUs) organizations have different
information system. Due to this there can adverse challenges in migration due to different
formats.
 Cost of transition: Costs must be effectively planned so that usage of resources and
implementation of transition can be maintained. As integration of data migration and
information system needs extra cost (Aminu, 2013).
 Adverse change impact: Functioning of organization will have adverse impact if healthy
communication and training sessions with respect to latest technology changes are not
provided to employees.
These technical challenges can be resolved by making use of Cloud. This will enable
them to store their information within cloud and access it from anywhere at any moment of time.
Cloud can provide services to FlashMobz which they can use to have space from cloud vendors.
Apart from this, if they need to have access to any kind of application they can have them by
paying specific amount. Furthermore, Asif is thinking to have their e-commerce arm. E-
commerce refers to process of purchasing or merchandising products over internet. It is referred
to as electronic commerce like inventory management system, electronic data interchange, online
transaction processing, internet marketing and others. Challenges which are faced by FlashMobz
while transition in e-commerce. They are mentioned below:
 Lack of verification measures: When customer signs up within e-commerce portal then
portal is not aware about who is customer except information which they have entered.
This intensifies when customer opt for cash on delivery (COD) as business is not sure
about genuineness of customer. This can result FlashMobz in revenue loss as amount is
invested on packaging of products and delivery. For this, FlashMobz can opt for
automated calls when COD purchase is selected. This is done to validate details which
are provided (Asare, Gopolang and Mogotlhwane, 2012).
 Product returns and refunds: If products are returned by customers due to any reason,
then business can have heavy loss of reputation and shipment. In such kind of situation

FlashMobz can minimise cost of operation with with effective return management with
smooth interaction platform with logistics vendors and partners.
 Lack of integration: Experience of customers can be ruined if different applications like
order management, customer services, delivery services, tracking system, etc. are not
aligned. FlashMobz can synchronise all information systems by which it will be
displayed within same interface. Apart from this, customer services must be incorporated
with multiple systems (Daoud, Naqvi and Ahmad, 2014).
 Issues of customers are unnoticed: Customers are essential part of an organization as
they can take business to great heights within certain moment of time. E-commerce
business receives many interactions out of which around 75% are complaints. If these
complaints are ignore, then image of business and their growth will be ruined. For this
FlashMobz can provide their customers with interface and ticketing solutions where
employees can respond to feedback or complaints of customer after they did this a ticket
will be generated. Moreover, these tickets must have priorities, high priority tickets must
be addressed before others.
 Loyalty of customer: If services provided by business are not effective and do not
provide them with high quality then they will shift to other service providers. Customers
expect seamed and conformable channel. For this, FlashMobz can opt for customer
service experience solutions, in this interaction with customers is under observation. This
will help them to enhance retention of customers.
Some challenges as well as their solution is presented in terms of transition in e-
commerce. If FlashMobz opt for this solutions while acquiring PhonesRUs and
implementing e-commerce, then they can attain enhanced results. Though it will
be expensive but this will be of worth.
2. Barriers to implementation and how they can be overcome.
Major barrier which can be faced FlashMobz while implementing e-commerce are
elaborated below:
 Cost justification: It includes high of implementation of e-commerce. If individual is not
experienced in relevant domain then certain mistakes can arise which will again lead to
expand cost. Cost cannot be justified in case of tangible factors but in case of intangible

factors such as advertisements and customer services cost can be justified (Ghandour,
2015).
 Amount of sellers and buyers: This denotes number of individuals who are connected
with internet and opt for services via online medium. This will aid organization to expand
themselves in developed countries as they have high salaries.
 Skill dearth and deficiency of trained personal: Rapidly change in technology and
emerging skills like PHP, ASP and XML programming. FlashMobz needs to hire
employees who are skilled and have knowledge of different aspects of technology
(Goetsch, 2014).
 Security issues: Customers are not sure about whether information is secure or not.
Hackers can access information if that is not protected easily. Customer’s confidence will
be reduced. Some organizations do not give consideration to this aspect.
 Reliability issues: Application system and network infrastructure must be tuned,
upgraded and maintained at regular intervals. Sites can be vulnerable to denial of service
attack, virus and reduction in confidence of consumer.
 Privacy and security issues: Customers do not want to share their confidential data
which includes credit card number, identification number home address, etc. For this
reason they are unwilling to go for online products.
 Cultural diversity: Customisation process can be costly as it requires specific interface
with respect to English language to local language. As English may not be understood by
every individual.
 Lack of trust issues: Trust of customer is essential as they can recommend their friends
as per their experience and legislative infrastructure. Organization needs to establish
brand identity of their organization.
 Absence of touch and feel functions: This is the limitation which every e-commerce
industry undergoes through. Customers only go for products which offer reasonable
prices within e-commerce sites. They do not go for products which offer high prices.
Customers conduct research on products and make comparison between prices they are
offering (Meier and Stormer, 2012).
 Protection of intellectual property right issues: Digital media is heavy or compact,
there are high chances of being replicated, alteration and transmission. Different

countries have their own attitude towards intellectual property rights. Laws must be
formulated to secure original copyright attempt.
 Taxation issues: Collection of internet sales tax is complex with respect to offline
collection. Different structure is followed by different countries.
 Sales of products which are restricted by other country: Organizations must be
careful about what they are selling in which country. They must follow certain rules and
regulations of countries in which they are providing their services (Monteiro, Swatman
and Tavares, 2013).
 Legal validity of electronic transaction: In traditional business face to face meetings
are conducted, wet signature as verifier and paper documentation. Electronic documents
must be customised and they should provide legal validity similar to that of written
signature.
These are barriers which are linked with implementation of e-commerce within
organization. FlashMobz can overcome these barriers by providing the services at reasonable
prices. Providing training to employees based on technologies which they are using and they are
opting to go for. This will aid them to have trained employees who will enhance their
profitability. When security aspects arises then they need to keep it on priority as it can either
enhance their customer base or either reduce it. For security purposes they can have double
authentication and keep that information within systems and servers in encrypted form. They can
either go for multi-factor authentication (MFA), it is method for authentication which needs
more than one method for authentication to verify credentials of customers.
FlashMobz need to provide their customers with different language options by which
they can serve multiple customers from different countries. As they are extending their services
in European market, they need to make sure that their website has multiple language options by
which each individual who do not have knowledge of English language can also access that
website or application. FlashMobz must provide their customers with enhanced services and
effective customer care services so that in case if they feel any kind of problem in services
(which they are being offered) then they can easily contact with specific person. Apart from this,
they need to enhance quality of their services. By this their customers will be satisfied and
recommend their friends or people in their circle to opt for mobiles and accessories from

FlashMobz. This will lead to build trust of customers and also image of organisation (Rana and
Baria 2015).
Furthermore, FlashMobz must be careful about services they are offering and in which
country they are being delivered so that they may not fell into any kind of legal issue. They need
to provide their customers with e-bill with wet signature so that they can be legally validated.
3 Present an inclusive and persuasive argument to Asif.
FlashMobz is a retailer which is based in England. They provides services in mobile
phones and their accessories. They started with a single shop and expanded into eleven. Then
they acquired PhonesRUs which have three outlets and two of them were in Belgium. Now they
are looking forward to expand their business in European market. For this they need to have their
warehouse and launch e-commerce by which they can enhance their services.
In present scenario, Asif is operating their services through shops which means that
customers come to their shop and demand for services as per their requirements. But when Asif
wants to enhance their services then they need to implement technology within their current
scenario. In this context, argument can be presented that Asif needs to execute technology so that
they can effectively expand their business in other countries and also maximise their profits. For
expanding business Asif needs to keep in mind policies and laws of countries in which they are
opting to provide services. This will aid them to carry out their functionalities in effective ways.
As per researcher, Asif needs to use e-commerce, services offered by cloud and have a
warehouse. In this case persuasive and inclusive argument can be presented to justify why it is
essential for Asif to opt for this. E-commerce will aid FlashMobz to provide their services
geographically, obtain visibility of customers and cost is less. When perspective of customers is
considered then travelling cost and time can be eliminated, they can compare services with other
service providers and services will be available any time. When FlashMobz will opt for cloud
services then Asif will be free from capital expenditure and hardware cost of cloud computing is
also not so high, reliability in services will be available 24*7 and it will enable Asid to work
from anywhere. When warehouse is considered then it is necessary to manage that, it will enable
FlashMobz to have effective space, errors in delivery can be reduced which provides satisfaction
to customers and security vulnerabilities can also be reduced.

For this Asif must use technological acceptance model (TAM). This will assist Asif to
recognise ways in which trending technologies are received and used by the user. This will aid
them to implement e-commerce effectively and identify whether customers of particular country
are open for this technology or not. This model is illustrated here:
Technology acceptance model (TAM): This model is proposed by Richard Bagozzi and
Fred Davis. As per this model, acceptance of latest technology by customer is dependent on two
different factors (Rehman, 2012). They are as:
Perceived usefulness: This refers to extent up to which user has faith that particular technology
will aid them to enhance their performance. In case of FlashMobz, it is essential for them to
analyse requirements of their customers and give them knowledge with specific technology i.e.
e-commerce they have opted for. Apart from this, Asif can also gain knowledge about what
technology they (customers) feel safe to use. Now a days individuals are opting for online
services rather than going to shop and buying products. When Asif will opt for B2C e-commerce
then they can increase their customer base which will lead to increase in productivity.
Perceived ease of use: It refers to magnitude up to which customer feels easy to use attributes of
specific technology. With respect to, FlashMobz it will help to analyse whether customers are
open business to customer services or not. That means that customers will prefer to go for online
purchase (of mobile phones and their accessories) or not (Tan, 2013). It is easy for customers to
customers to opt for online services as they are addicted to smart phones. Apart from that it will
also easy for FlashMobz as extra cost of space can be saved.
These 2 factors will help Asif to identify attitude of customers for usage of particular
technology. This will lead Asif to provide enhanced services to their customers and gain vantage
in respective domain.

(Source:Marina, 2009)
This model will aid Asif to analyse what customers require and whether they are
comfortable in e-commerce or not. This will also help FashMobz to save their cost in
implementation of that technology which may not be acceptable by customers. Furthermore,
there are certain barriers which have been analysed above. It is essential for Asif to consider
them all so that security issues may not occur and confidential information of customers may not
be exposed. For this they can opt for different methods of authentication (Zaied, 2012).
CONCLUSION
From above it can be concluded that technology plays effective role in expansion of
business. This file includes FlashMobz organisation which provides its services in accessories of
mobile phones and cell phones themselves. They are using traditional ways to provide services to
their customers. But they are looking forward to expand their business in different countries.
Various technical challenges faced by Asif are analysed and transformation into e-commerce is
provided. Furthermore, barriers which are applicable to implementation of e-commerce are
presented and ways in which they can be overcome are identified. At last an argument is
presented to Asif in terms of what they need to do to identify requirements of customers and
technologies in which they will be comfortable.
Illustration 1: Technology Acceptance Model (TAM)

Recommendation:
They have acquired organisation PhoneRUs but if Asif has not opted for cloud services then it
will be costly as well as time consuming to share information between different individuals who
are part of FlashMobz. Asif must opt for cloud vendors like Amazon, Google or any vendor as
per their requirements. This will help to access information from web at anytime. Though they
have to pay for services but they will not face any kind of issues related with transfer of data and
information. It is essential to provide application in whose interface different languages are
present which will enhance their customer base and they will be able to provide services in
different section of countries.
Online collaborative technologies:
These are tools which can be used for providing heterogeneous types of software and online
services to individuals (Agboh, 2015). This enables people to work on shared goals, no matter
where they are located. It can be easy like email and sophisticated like software for project
management. It can be like a virtual environment where different people can interact with each
other. As FlashMobz is a small organisation then such kind of technology will make
communication easier, persuasive and productive. Groups can be created of people who share
similar interests otherwise it would not be possible to interact face to face. It will also reduce cost
and time by providing group work. Some technologies are wrike, trello, conceptboard,
messenger, zoho work drive nad many others. Asif can opt for Zoho Connect, it is a team
collaboration application in which resources i.e. either apps or people can be unified. Individuals
can share their ideas, real time discussions can be carried out, apps can be built and plans can be
managed (Rehman, 2012). This will assist FlashMobz to have effective communication with
customers and also take their review related to services they are offered and ways in which they
can be further enhanced.
Reflection:
As per case study of FlashMobz they want to expand their business in both respects which
includes offline as well as online. As per me, they need to analyse demands of customer and
analyse whether they are going for online services. As in this technological era almost everyone
is going for services which are provided online, so it’s necessary for them to make their services
available online. They need to have attractive website in which they must provide details about
every aspect which they are dealing with along with their prices. This will assist customers to

compare prices, features and other aspects of mobile phones and accessories with services which
are offered by other organisations. By this customers will get to know about services which are
being offered by them at what price with respect to others. Apart from this, they can have their
own application for smart phone users where customers can get details of every item from
ordering till it is delivered. This will assist customer to know about product.
Asif can have benefit from this as they will be able to provide enhanced services to their
customers, increase their customers by providing services in different parts of country as well as
enhance their profitability. Though there are various technological challenges which FlashMobz
need to phase in acquisition of other organisation and in implementation of e-commerce but this
will aid them. It will be like one time investment if they will be able to satisfy their customer by
providing quality services. If they are not able to satisfy then Asif need to look for alternatives
which can be expensive. For this Asif must ensure that they acknowledge what is requirement of
customers, what will be easy to them for use and system which can secure their information.

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