ASSIGNMENT FRONT SHEET <No.

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Qualification Edexcel BTEC Level 5 HND Diploma in Computing and Systems Development

Unit number and title Unit 01: Business Skills for ECommerce

Assignment due 15-08-2016 Assignment submitted 23-09-2016

Learner’s name Assessor name

Learner declaration:
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.

Learner signature Date 23-09-2016

Grading grid
P1.1 P1.2 P2.1 P2.2 P3.1 P3.2 P3.3 P3.4 P3.5 M1 M2 M3 D1 D2 D3

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Assignment title ULKOM BICYCLE HIRE

In this assignment, you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.

Assessment criteria Expected evidence Task Assessor’s Feedback

no.

LO1. Understand the structure and aims of business organisations

1.1 assess an organisation’s What type of organization ULKOM is

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core business functions and what is their main aim?

1.2 evaluate an
organisation’s business aims A full SWOT analysis table.
and show how they relate to 1

stakeholders

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LO2. Understand the impact of e-Commerce

- The benefits to customers and to

2.1 analyse the impact, the organization of introducing the e-
including the risks, of Commerce solution.
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introducing an e-Commerce - The potential cost of implementing
system to an organisation the system, any support staff that
might be needed and what back-up
systems are required.
Your discussion should include a

2.2 discuss the global impact comparison of two countries across

the world. Consider for example, the 2
of e-Commerce on society
impact of e-Commerce in the US and
UK.

LO3. Be able to design e-Commerce solutions

3.1 investigate market

You must find organizations that are
potential for an e-Commerce 3
involved in the same kind of business.
opportunity

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3.2 evaluate current e-
Commerce systems in use by 3

organisations

3.3 discuss the financial

implications of an e- 3

Commerce solution

3.4 design an e-Commerce

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solution

Use block diagrams to fully design the

structure for the proposed system.

3.5 evaluate the suitability of

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an e-Commerce solution

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Assessment criteria Expected Evidence Feedback
(note on Merit/Distinction if applicable)
M1 Analyse concepts, theories or
principles to formulate own
responses to situations.
M2 Analyse own knowledge,
understanding and skills to define
areas for development.
M3 Exercise autonomy and
judgement when implementing
established courses of action.
D1 Evaluate approaches to develop
strategies in response to actual or
anticipated situations.

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D2 Evaluate and apply strategies to
develop own knowledge,
understanding and skills.
D3 Determine, direct and
Summative feedback
communicate new courses of
action.

Assessor’s Signature Date

IV Grading Check: Comments if any:

Agree
Disagree Modify grade to

IV Signature Date

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Taks 1:
1.1 Assess the organisation’s core business functions and conduct a SWOT analysis of the company in the
given scenario.
“ULKOM BICYCLE HIRE”- is a bicycle hire business for many years and their main aim is to help people can
hire a bicycle in a convenient way and their branches placed at London, Manchester and Cardiff. This aim
is good but the way thay deploy seems to be not effective and it’s hard to reach a higher revenue or widen
their business because all of their business process are doing by hand in spite of applying information
technology. They want to keep track on their customers, bicycles status and their bicycle status
immedately. That’s the point the company want to reach in order to managing their business effectively
and reducing any kind of risks occurred.
This is SWOT analysis of ULKOM company:
SWOT Analysis Positive Negative
Internal Strengths-S Weaknesses-W
 Experiences in this field for many  Don’t have an online payment
years  Lack of technology skill
 Existing customers  Working by hand
 Flexibility renting service:  Connect between three
Customers can rent bicycle and branches over the phone may
return it in a different branch cause errors and very slow
 Narutal disater(fire, flood,
accidents…)
External Opportunities-O Threats-T
 Expanding the system, get new  Lost information when
market. everything is managed by print
 Increasing of business activities, copy
apply new service  Lose or damage bicycles
 Cooperating with other companies.

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  The amount of booking is increasing
every year

1.2 Explain how the existing business strengths can aid the company to achieve the business aim.
Further, you should evaluate how this aim relates to the stakeholders and their interests (use the
SWOT table (i.e., the strengths and opportunities cell))
Business aims: ULKOM wants to build a new general database along with a webpage in order to reduce
management time and business operation errors, moreover the company wants to keep track on their
customers information.
Base on SWOT analysis above:
 Working experiences(hiring out bicycles): this is neither support nor conflict their business aim
 Existing customers: the company wants to reduce management time and errors in order to serve
customers better and get more customers’ satisfaction and that is what customers also want, in
this case there is no conflict between them.
 Flexibility hiring service: this factor support the company business aims
Stakeholders and their interests:
 Owners: They are interested in maximizing the profit the business makes and this support for the
business aim. On the other hand, the owners also want to minimize the management cost, this
conflict with their aim because of deploying a new system will be costly.
 Employees: They want to earn money and stay employed, by deploying new system, the company
will reduce management time and errors, employee will be trained new technology in order to
work more effectively, they will easy keep track on their customers, in this case, employees will
support for the business aim.
 Customers: They want the business to provide high-quality goods or services, base on SWOT above,
the company want to help keep track on their customers information in order to serve their
customers better products and services, in this case, this factor will support business aim. On ther

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 other hand, customers also want to purchase in a low cost, this will conflict with company business
aim.
 Suppliers: They want the business to continue to purchase from them or even increase sale,
moreover, supplier also want to supply products with higher price and higher quality, in this case
it will supports the business aim.
Task 2:
2.1 Evaluate the impact of introducing an e-Commerce system for ULKOM. Identify the risks involved to
implement the system
"ULKOM BICYCLE HIRE" is a small business of bicycles hiring in the UK and they want to appply e-
commerce application for the business. Here I will analyze the impact of e-commerce of this business:
Benefits to the organization:
By introducing an online system, the company now have an online marketing, now marketing is
not limited in a local scale, they can advertise in a global scale. In addition, not limited information, they
can introduce more information on the internet to customers who are interested in and it is easy to update
information immediately and costly. Internet advertising also cost much lower than traditional advertising
such as advertising on television, newspapers or magazines, etc…. Finally, the company have to spend a
small fee to maintain their website and database.
In e-commerce, customers are not just in a local scale, customers from other cities can rent bicycles
online at anytime, from anywhere, so that the number of customers will increase sharply along with 10
increasing revenue. But, be sure that the quality and the price of the products and services must be good
as much as possible or e-commerce won’t help them at all.
With e-commerce, the company can provide an online catalog, information, bicycles facilities,
customers can access to this data at any time, they can feel free to choose a bicycle they like. Moreover,
transaction time will be reduced as much as possible, customers don’t have to wait too long to get a
bicycles, that means the company will get more customers’ satisfastion. Quality services is an important
factor in getting and keeping cutomers in a long term.
Risks involved:

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Risk about data: The hackers can attack the data webpage to steal information or delete all the
information or even virus attacks. In some case, the company may get fake customers, fake booking, etc..
Loosing customers’ information: When customers is doing an transaction, hackers can attack and steal
customers’ information such as credit card information, bank account, etc..
Technological risks: The database can be harmed in some case such as power losing, fire attack, etc…..
The database can be destroyed or erased all data or formatted the system's hard drive.
Customer’s risks: People always scare of something they don’t know much , especially elderly, so if
ULKOM apply e-commerce to their business, they have to face of loosing some customers who are not
willing to use a computer to book a bicycle in spite of going to the store.

2.2 Discuss the economic and social impact of e-Commerce on society as a whole. Also, discuss the
impact of privacy issues on the use of e-Commerce solutions.
E-commerce has a huge impact on every corner, every sector of the society such as the economy,
education, health, etc… It changes the way we go selling or buying something. There are many advantages
which e-commerce offers over traditional method.
1. Wider range of choices
With e-commerce, the consumers have a wider range of choices for the needed products from
the variety of sellers. This possibly happens because at present, many sellers use Internet sites as
shop fronts
2. Products or services can be purchased from remote areas
With e-commerce, a local company not only competes with competitors in the region even other
competitors are remote from them, so that, the quality and price of goods will be the key point for
the company to success.
3. Price comparisons
E-commerce enables consumers to perform price comparison, so that they can make more
appropriate purchasing decisions.

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4. Save time
With e-commerce, consumers can save their time because they can have access to the web-
shopping at home through Internet with a simple computer.
5. Convenience
E-commerce can offer maximum convenient to consumers because they can visit various online
sites to compare prices and make purchases without having to leave their homes or offices.
An easy example we can see that is website Facebook.com, Facebook has changed the way people
contact with othes, it’s not just by using cellphone, email, or sms, etc…., Facebook also changes the
way we advertise our product to customers. With those impact on society, Facebook has promoted
the development of our life and the economy not just about us but our next generation also.

The privacy issue is the most concern for consumers and any concern for consumers must be treated
as a major concern for e-commerce providers. On the positive side, companies gather customers’
information in order to analyze and offert a suitable service to the customer, that will help the
company get more customers’s satisfastion. On the other hand, collecting customers’ information in
some case is used for bad purpose such as some companies collect customers’ email or phone number
and then they send an advertising to those emails, numbers. Seriously, in some case, hackers can steal
all information about credit card, payment online systems, etc…. So that, on e-commerce, privacy and
security must be considered the highest priority of the system.
Task 3:
3.1 Investigate the potential of the UK market for the e-Commerce solution of the company in the given
scenario.
Nowadays, cycling is not just riding a bicycle, it is about protecting the environment, reducing gas
pollution and it is also very good for our health, in the UK using a bicycle in spite of driving a car has
become a common trend in these recent years, especially in some big cities such as London,
Manchester, etc…. With the population is around 63.7 millions of people, internet users per year go to
82% of the population and revenue from online business is up to €110.5 billion in 2013 according to
IMRG/Capgemini, this must be one of the biggest online market all over the world and ULKOM should
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 catch up with the trend and they should apply e-commerce business as soon as possible. Internet has
grown very fast in many years in UK, almost traditional transactions have changed into online
transactions, it’s quickly and effectively. ULKOM has realized the important of e-commerce in the UK,
located in the UK is one of the first advantage and the statistic aim to the UK market is point to the
company to achieve. In addition, the potential is also related to customers, in UK people are familiar
with online transactions, so ULKOM e-commerce will easy to build without any negative reactions from
the market, one more thing, ULKOM has built an e-retailer sales plan for a long period so it will boost
the rebuild infrastructure process faster. Finally, UK has a few companies which have the same
functions like ULKOM, so the press of the competition is not much, especially by applying e-commerce,
it will help ULKOM be more special, unique, competitive, it will build a positive image to customers
and the company will get more customers in an easy way.
3.2 Evaluate the e-Commerce solutions used by three competitive organizations.
British Bike Hire:
They have a good e-Commerce solution. On their website we can see all the necessary of hiring out
bicycles that a company should have. Different with ULKOM, they have three branches to serve people in
London only. Especially, they often organize events such as a race to win a bicycle, this is very helpful to
define their brand to other competitives. The outstanding point of this company is that we can book
bicycles with one of group people at the same time which ULKOM doesn’t have
The Malvern Bike Hire Company:
This is a traditional business but they organize their business effectively by focusing on main
function like hiring. Moreover, they also have an additional service, they introduce some best places for
customers to travel with a beautiful scenery in a reasonable price. They have been voted for “Best View in
Britain” by Rambling Association. Comparing with ULKOM, this business can attract more customers than
ULKOM, their services is more attractive, it’s not just about hiring bicycle.
New Forest Cycle Hire:
Almost have main function like two other competitors. But they have a special function than
others, it is routine. This function can help people to make a schedule for all activities they want to do in
one week and the company will send suitable bicycles with their plan. ULKOM is simplier than this business,
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they don’t have a complete customers’ database which allows the company to do anything more
complicated than hiring bicycles, that’s why ULKOM needs a central database.
3.3 Discuss the financial impact of the e-Commerce solution to the company.
For the company, this is the revolution of all business operations and access to the whole sale and
retail market. It changes the whole things and creates new financial service and new business model. In
the transform process, the company needs to define which is advantage and disadvantage of financial
impact. At first, the company have to pay for the technical process(building a central database, a website)
this is just a small fee compare to others, after that the company also need to invest to marketing and
advertising online, this costs not much, ULKOM must have a good plan for a long term and effective.
Building a trusted and simple hiring system will make e-commerce work better, when hiring a bicycle is
just about a few mouse clicks then a lot of transactions will be created, the more transactions they get,
the more revenue they have. In addition, a payment system is very important in e-commerce, the company
must have a trusted one, customers can use their card such as master card, visa card or even online
payment gate way like PayPal.. Because it’s totally safe so that the customers will feel comfortable to hire
a bicycle online and the company’s revenue will grow dramatically.
Some of the main advantages of e-commerce for both the consumer and the company are:
1. Lower advertising and marketing costs
2. It is very convenient and customer friendly
3. Twenty Four hour access from any where
4. Targeting remote customers
Taks 4:
4.1 Design an e-Commerce solution for the company in the given scenario.
e-Business objective: The company wants to deploy ecommerce in order to reduce management time and
business operation errors, they also want to keep track on their customers’ information base on their
central database in order to serve their customers better.
Existing materials: The company has existing loyalty customers, their branches are located in 3 big cities,
moreover, each branch has their own database.

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Implementation:
1. Change management:
 Business process management: ULKOM has to change from working by hand to using infortmation
technology. Ssoftware tools is used to increase process efficiency by improving information flows
between people as they perform business tasks.
 Human resource requirements: e-business implementation requires specialist skills that may not
be present within ULKOM. Managers have a choice of building a new skills set for existing employees
or outsourcing and partnering with other organisations.
 Risk management:
o Identify risks, including their probabilities and impacts.
o Identify possible solutions to these risks.
o Implement the solutions, targeting the highest- impact, most likely risks.
o Monitor the risks to learn for future risk assessment.
 Customer management: Some customers may not adapt with ULKOM changes, ULKOM has to send
E-mail to customers to inform about their updating frequently. Moreover, the company should keep
track on their clients’ interests and activities based on their behaviors but must be sure that privacy
information is secured.
 e-Marketing: Marketing and advertising is now on a global scale, the company must have a good
plan for marketing in a long term, they have to decide about the products’ information and services
should be promoted to online customers, on the other hand, ULKOM should promote on some
popular websites such as Facebook, twitter, yahoo, etc…
2. Analysis and design:
Analysis for digital systems is concerned with understanding the business and user requirements for a
new system. Using analytical techniques to capture and summarise business and user requirements.
 Process modelling: analyze to identify the relationship between tasks within a business process. Every
process must be clearly defined purpose or objective and clearly defined inputs and outputs.
 User-centred site design and customer experience management: Design based on optimising the user
experience according to all factors, including the user interface, which affect this.
 Security design for digital business: Security is a prime concern of digital business managers. The
principal concern is the security of information: both about customers and internal company data about

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 finance, logistics, marketing and employees. These steps can help company improves security in
business:
o Network Security: ISP must have a fire wall built-in. If not then instal a proprietary firewall (for
example, from mainstream suppliers like Symantec, Sophos, Kaspersky, etc., which is often
included in a suite of software)
o Manage IT Access : Employ usernames and good passwords to control log-in. Good passwords
contain upper and lower case characters, numbers and symbols. Don’t write passwords down
or share them between users.
o The use of the cloud should be treated like any other outsourced provision and (ideally) be
subject to service level agreements. ULKOM can contact them and ask for a service level
agreement. Do ensure that the company knows where and how their data is stored on the cloud
and who is liable/responsible for that data.
 Website:
o Domain name: The domain name needs to be easy to remember and give a vision of the
compay, for example, ulkombike.com or hiring24h.com.
o Web-hosting: We can choose a web-hosting service which provides suitable package to the
company in a low cost, moreover, this service must allow us update and maintain the system
easily or even widen our system in the future.
o Build a website: an attractive design should be mainly forcus, especially using template for e-
Commerce related to bicycle renting. Another important step after front end design is creating
catalogs of the bicycles and bonus services with multiple images. The website also has to show
all the functions that the organization has such as booking, online payment, price checks, etc.
o Customer feedback: Ulkom must have a Contact page on the website which allows customers
to send feedbacks to the company. Those queries have to be collected and evaluated as usually
as possible to be able to implement a FAQ page.
o Payment processing: Customer can choose from multiple payment options either paying online
(e.g. via Paypal), credit/debit card or paying cash at the store. A booking fee must be paid in
advance which is 20% of the total hire cost.
o Delivery processing: When a customer receives the bicycle the booking status becomes “hired”.
The customer can hire bicycle at one store and return it to another branch.

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 3. Digital business service implementation and optimisation
 Managing web content: Managers need to be aware of some aspects of managing content through
content management systems:
 Testing: Testing has two main objectives: first, to check how the website works with the business and
user requirements, and, second, to identify bugs or errors. In other words, it checks that the site does
what users need and is reliable
 Changeover: changeover from a previous information system to a new system is particularly important
for ecommerce, it may have negative effects on customer experience or disruption to the supply chain.
The company must fully test the system in a controlled environment before it goes live and thus
minimise the risk of adverse publicity due to problems with the site.
4.2 Using CRM (Customer Relationship Management) approaches identify techniques that could be used
for retaining customers and increasing sales.
 Offert multiple services along with hiring out bicycle: In order to increase sales, we can offert
many other services such as GPS map for travellers, tour guides to some special places, protection
equipments, flash light using in the night, etc…. These offerts will help the company increase sales
not only hiring out bicyle
 Maintain friendly relation with customers: maintain a relationship with existing customers is very
important. We can give explanations before customers have any complains about our products or
services. Moreover, base on buying history, online time on website, we can update new products
– services or even ask for their demand in order to have a friendly relationship with customers.
 Building a personalize programs: Each employee in the company will focus on a group of
customers, this employee will have to contact with customers when they order, explain to them
before having any error, fix and maintain bicycles,….All activities of this employee just mainly serve
a small group customers, this employee will understand these customer most and he will offert the
best product, special services that is most suitable for only these customers, he is a connection
point between customers and company. These activities will make customers feel they are
respected and they will be with the company in a long term.

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