eBusiness Assignment Autumn 2020
|Learning Outcomes assessed:||1 and 3|
The learning outcomes assessed in this assignment are as follows:
|Module Learning Outcome||Description|
|LO 1||Identify and justify clear objectives, formulate company and marketing strategies and evaluate the advantages and disadvantages of e-business for such strategies.|
|LO 3||Demonstrate a practical understanding of the costs, revenues and profitability of e-business|
There are FOUR (4) tasks set out below. Please complete all FOUR (4) tasks for your chosen organisation (see scenario/topic guidance above).
Task 1(25 marks)
Describe the two organisations and compare and contrast their business models. In your response you should consider:
Task 2(25 marks)
Considering Revolut, identify what you believe may be the most significant value for the organisation and their customers and explain why you believe this.
Considering how Revolut undertakes their activities, identify an e-business technology which your chosen financial organisation could benefit from adopting and explain how that can add value to their business.
Examples are needed to illustrate and support your ideas. Show how value is created compared to the more traditional ways which individuals and organisations can manage their finances. Evaluate how sustainable that added value is.
Task 3(25 marks)
For the e-business technology identified in task 2, use an academic framework to evaluate how the adoption of your recommended technology could impact on each element of the business model. Undertake a cost – benefit analysis to demonstrate the extent to which such a change could offer real value for money (cost of technology with regards to the realised benefits).
Task 4(25 marks)
For either Revolut or your chosen financial organisation, critically evaluate the advantages and disadvantages of an eProcurement strategy.
Select TWO (2) eProcurement technologies which would be beneficial and critically discuss the use and application of these techniques justifying why they could be appropriate for your chosen organisation. Choose TWO (2) further methods of eProcurement which you believe would NOT be beneficial and explain why.
Methods you can choose from include:
The two chosen organisation for this assessment are Revolut and Braintree. Both these companies are the financial organisations that have the potential to get benefit from the E-business activities. E-business activities include various activities such as manufacturing of products, processing of the products and communication. Revolut is a private company founded by Nikolay Storonsky and Vlad Yatsenko in the year 2015 (A better way to handle your money, 2020). The headquarters of this company is in London. However, on the other hand, Braintree is a payment service provider. It was founded in the year 2007, by Bryan Johnson. The headquarters of this company lies in Chicago, United States (Braintree | Online Payment Solutions and Global Payment Processor, 2020).
Both companies are in providing financial services. However, while analysing the business of the companies, it was found that the business model of both companies is very different. There are many differences between both the companies for marketing their products. The company Revolut believes that they do not need to invest a significant amount on marketing as they are solving the real problems of the customers (Diño & Ong, 2019). In using this technique, they will automatically come to the forefront of the customers. However, Braintree is organising marketing campaigns where they promote their company through their bold Ads. Hence, the marketing of products for both companies is different. This is how both companies are acquiring their potential customers.
Similarly, except this, there are other differences in both the companies. The value prepositions for both the companies are different. For the company, they propose the value by taking low fees by making the transactions frictionless. They want to provide fearless Foreign exchange globally. On the other hand, the Braintree has the offering of four main value prepositions that are accessibility, reduction of risk, pricing and customisation. Both their values are different, which refers to a completely different approach of conducting the business. The revenue stream of Revolut is a bit different from the other companies. They generate their revenues by selling subscriptions or packages to their customers. They have various subscription packages. (Bogaert, 2020) However, on the other hand, Braintree charges transaction fee from their customers which yields them with revenues. The Revolut provides interactive customer services where the customers can directly call the executives and question on their issues. However, in Braintree, the customers' relationships are primarily concerned with self-services with limited interaction with the employees.
The idea of Revolut is to provide fearless foreign exchange services to their customers. In recent days there are many scam payments gateways. In the era of frauds and Scams, Revolut has taken the initiative to provide frictionless services without any fear. It is one of the most significant values that any organisation in this industry wants to achieve.
The reason, I believe in this value is because the world needs a revolution. Moreover, with the help of making people technologically smart, the whole of humanity can be uplifted.
Revolut undertakes various financial activities in their company. However, there are much more technologies after the 4IR, which the companies can adopt in order to increase their benefits in the company (Storonsky, 2016). One such technology is the automated data collection system. This system will help the company to collect important data and store it in privacy. Data is the king of the modern world. Companies having more data can achieve success in no time. Hence, all companies need to store essential data. It can be used for marketing and making strategic plans. It can also be used to analyse the loopholes of the business to get the exact target customers the company require (Conway, 2019).
Google is having one of the biggest databases in the world. Hence, there is no other company which can beat them in terms of achieving success. It has become one of the most valued companies in recent times. (Google Cloud databases, 2020) Similarly, this e-business technology will help Revolut to understand who their actual customers are. In traditional times, companies used to make giant advertisements and bring mega starts in their platform to show people that they are not scammers. However, in modern times people believe in technology. Hence, innovation in Revolut is helping them to pace the world (Copeland, 2018). This value is sustainable as people need to be fearless while transacting their hard-earned money. Hence, companies need to achieve this value.
The TOE framework was developed in the year 1990, by Tornzatzky and Fleischer. It helps in assessing three aspects of the enterprise that influences the adoption and implementation of technological innovations (Baker, 2012). It is a theory that says that three elements of an organisation influence the adoption decision in the company.
The Technology- Organisation-Environment Framework
It is found that the TOE is developed significantly less after the original formation of this framework. Various theories are used in the IS research. In the TOE frameworks, it describes the three elements. In the technology context, both the internal and the external technology that is relevant to the firm are undertaken. This also includes the practices and the equipment, which are needed for conducting the assignment (Al-Hujran, Al-Lozi, Al-Debei and Maqableh, 2018). In the organisational context, it generally refers to the measures that are undertaken, such as the scopes. In the environmental context, it analyses the arena where the company is conducting its business. It includes industry, government and competitors.
This framework is adopted IT studies as it helps in the empirical support that is identified within these three contexts. It can vary with different studies. A cost-benefit analysis is analysed below for Revolut:
There is various cost associated with the implementation of the automated data collection in the company. However, there are tremendous benefits.
There are many procurement technologies in the market. However, the most beneficial technology in the market is the online-purchase orders and e-payments. For the company like Revolut, the technologies are to be used should be these.
In my opinion, these are the two procurements which can be beneficial for the company Revolut. However, there are two more procurements which will not be beneficial for the organisation. These are: