Polytechnic University of the Philippines

COLLEGE OF BUSINESS ADMINISTRATION

DEPARTMENT OF OFFICE ADMINSTRATION
Sta. Mesa, Manila
E-mail: cba@pup.edu.ph

(Trunkline) 716-7832 to 45 loc. 267/324

Office Administration e-Learning Approach

OFAD 3143

PLANNING THE ELECTRONIC

COMMERCE PROJECT

Reported By:
Angeline P. Macabenta

Submitted to:
Prof. Ronnie A. Idian

January 2017

BUSINESS PLANS FOR IMPLEMENTING ELECTRONIC COMMERCE

Planning the Electronic Commerce Project
A successful business plan for an electric commerce initiative should identify the initiatives
objectives, manage the implementation of those objectives, and manage the continuing
operations of the initiative once it is launched.
Objectives for electronic commerce initiatives should include expected benefits and expected
costs. Benefit objectives may include building brand awareness or enhancing existing marketing
and promotional programs. Some companies plan to sell products, services and adverting, while
others establish online auctions or create virtual communities and Web portals. Other common
organizational objectives are related to purchasing functions and supply chain management, as
well as improving after-sale supportive services.
Purchasing Management/Functions Objectives

the right quantity and quality

at the best price

from suppliers who are reliable and provide good service

to provide an uninterrupted flaw of materials and services for company operations

to find reliable alternative sources of supply

to buy at the most economic order quantities

to buy the best value: a combination of right quality at the best price with the best
supplier service

to maintain good relations with vendors

It is often helpful to state the goals of purchasing for your business. In this way, you will never
lose sight of the purpose of the purchasing function and will be able to make more intelligent
purchasing decisions.

Supply chain management

Supply chain management involves the coordination of production, inventory, location, and
transportation among the participants in the supply chain.

After-sale service is an important source of revenue and profit for your business. After-sale
service also helps to build strong customer relationships and can prove to be an effective
differentiator for your business. Your after-sale improvement plan should concentrate on
identifying new services that are important to your customers, reducing your service delivery
costs, ensuring service quality and increasing revenue and profit from after-sale services.
No matter which set of strategic objectives an organization selects for its electronic commerce
initiative, the cost budget is frequently used to make this kind of analysis.
Managing Cost
IT projects are often difficult to estimate and control

o E.g. web development technologies change rapidly, thus it is difficult for

managers to estimate cost
Even though hardware cost tend to decrease, new software often demands new hardware,
thus increase cost
Cost of outsourced design work
Salaries and benefits for employees
Cost of maintaining the site once operational
In addition to hardware and software costs, the project budget must include the cost of hiring,
training and motivating the staff responsible for the web site design, operation and maintenance.
The project budget is a detailed estimate of all the costs required to complete project tasks.
The project budget must include:

Hardware and software cost

o Cost of hardware (servers, routers, firewalls and load balancing devices)
o Cost of software (licenses for operating systems, Web server software, database
software, and application software)

Costs of hiring, training and paying personnel

Web site designers, developers, content providers, operators and maintainers.

Staffing costs can consume over 75 % of the sites total budget. The capital acquisition budget
for an electronic commerce Web site requires more managerial judgment of the real value
intangible assets such as customer satisfaction or public recognition of brand names than
traditional business investments. The nature of intangible benefits associated with commercial
Web site is related to the virtual nature of the Web.

E-Commerce Software

Catalog management
-

Contact information

Logos and or other branding

Some product information

Product Configuration

Shopping Cart Facilities

E-commerce transaction processing

-

Connects participants in the e-commerce economy and enables

communication between trading partners, regardless of their technical
infrastructure

Web traffic data analysis

-

processes and analyzes data from the Web log file to provide useful
information to improve Web site performance

ANGELINE P. MACABENTA

JANUARY 2017

BSOA CT 4-3D

OFAD 3143

QUESTIONS:
1. Give at least 3 objectives for electronic commerce initiative:

o Purchasing functions
o Supply chain management
o Project budget
o Hardware and software cost
o Costs of hiring, training and paying personnel
2. It is a detailed estimate of all the costs required to complete project tasks?
o Project Budget
3. An Electronic commerce software consists of:
o Catalog management
o Product Configuration
o Shopping Cart Facilities
o E-commerce transaction processing
o Web traffic data analysis
4. It involves the coordination of production, inventory, location, and transportation among
the participants in the supply chain.
o Supply Chain Management
5. It to provide an uninterrupted flaw of materials and services for company operations?
o Purchasing Function