Shop Online is a UK based e-commerce business, which is like an Auction
site. Customers need to have an account to either purchase, bid or advertise on
items. Products are not delivered to customers own address but are distributed
to renowned stores for collection. It only operates in the UK but they would
like to expand their business into other European countries to increase
customers and also to get an advantage over the other businesses that are
similar. The business IT objectives are to redesign the website, implementation
of new information system and fix existing systems. The campaign objective is
linking more organizations and understand the approach to gain buyers and

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The Company
Shop Online would like to remodel the existing E-auctioning
website to guarantee that users can navigate easily and options be fully functional.
E-Auctioning also called online auction is service on the internet that
involves users and participants to sell, bid or buy products and services from
different locations (Techopedia, 2015). Derived from (Tutorial Point, 2015) Functional
requirements are clearly detailed statements on what the Auctioning system
should be able to do the description of the auction website services.


1.1.1.    Sellers website Functions

·       Create/register an Account

·       Add products

·       Create a description of the product- properties, shipping cost, about,
stocks, tags for category

·       Add media showcasing items

·       Either to have buy now feature or a bid feature

·       Set a start to end bid date or time period

·       View all bid made by purchasers

·       View status of products that are being sold (highest bid made,
purchases, number of bids, bid that are closed

1.1.2.    Purchasers web functions

·       Create/register an Account

·       Search for products

·       Search by category

·       Flag a product as inappropriate

·       Bid for and item 

·       View bids made

·       View item details

·       Checkout cart if auctions is won

·       Cancel bids


1.1.3.    Staff and Management website functions

·       Stop an auction early

·       Remove and block a user

·       Add, modify, or remove products

·       View all items that have been flagged by users 

·       View all auctions currently in progress, and include sorting capability
so that auctions ending soonest can be displayed first

·       Track user when they placed the bid





Sellers will be able to track and keep an account of their items for
sale when they log into their accounts. Sellers should also have the option to
display and explain the products that they are selling such as description of the
item, pictures, video overview of item, specs if electronic. The sellers can
also set the biding timeframe. He should also have the option for customers to
bid or buy the product without bidding. When bids are made, sellers should be
able to see who bids on the item, the highest bid that was made, items that
were purchased and bid that were closed.


Customers or purchasers can
search for products of their interest in search bar. They can also filter the
products by type, which gives them advantage to locate the items they need
faster. Viewing description options helps the customer understand the
specifications of the product. If an item is inappropriate or breaches the
terms of shop online the customer can flag the item to protect other customers
who come across the item. Customers can see the bids or purchases that they
have made. If accidental bids are made it can be canceled


Staff will have power over the
accounts of sellers and customers. Items that have been flagged by customers can
be viewed and if seen to be unsuitable for shop online can be cancelled or
removed by staff to uphold the terms of the business. If customers or sellers
post inappropriate items or make comments can be suspended from using their
profile or IP blocked.




















Derived from (Nielsen, 1995) A Heuristic
Evaluation is a usability inspection done by usability experts using a set of
guidelines to evaluate the user interface of a product. There are ten (10)
principles for this evaluation. The following are:

Visibility of System Status

Shop Online users should
always be kept informed by the system on what is taking place within a
reasonable timeframe

Match between System and the Real World

The system should speak the
users language such as words and phrases that are known to the user

User Control and Freedom

When the users accidentally
select a function they should be able to undo the mistake that was done

Consistency and Standards

Shop online Users should not wonder
whether different words, situations, or actions has the same meaning.

Error Prevention

The design of the product
should be designed so that no errors occur in the first place by eliminating
the errors or double-checking for user and then give the user an option to
confirm their actions.

Recognition Rather Than Recall

Recalling information should
be easy for the user by making there pass input dialogues visible so they can
easily retrieve it when needed

Flexibility & Efficiency of Use

Users of level of experiences
should be catered for in the business

Aesthetic and Minimalist Design

All information in dialogues
should be important or impact the user at shop online

Help Users Recognize, Diagnose, and Recover
From Errors

Errors should be displayed and
explained in an understandable language. It should also give a solution or
some assistance to solve the current error.

10.  Help
and Documentation

All documentation should be
easy to search for, digital or presented to them. The steps of help should
also be easier to search for and should be concise and helpful 




Derived from (Scholes, 2006) Strategy is high-level plan of action created
by organisation to achieve one or more business goal. A Successful strategy can
cause growth of business, high position in market and high income when it meets
the necessities of the market and stakeholder. Derived from (Bristoll, 2015) For the business to become successful
and have a high competitive advantage over others there are three levels of
strategies that are used that are the corporate, business and operational/
functional levels strategies.

·       Corporate Strategy is done by the
owner who outlines the objective of the organization and the action dealing
with reaching the objective with the best performance. Larger the business the
more complex the strategy will be.

·       Business Level Strategy deals with
the market and customers. This entails being different from other competitors
by getting types of products to satisfying customers and meeting their needs to
be at the top.

·       Functional or Operational Strategy involves
reaching objectives for each part of the business carries out operations, such
as marketing, production, finance, IT, human resources etc., on a daily basis.
It also involves the setting of resources for each function of the business.

The mission of Shop online is the
enlarging the business and expanding to another location which is Europe.  While expanding their major objective is
increasing the customer base. SO has two plans to further their business by
having an IT and Marketing strategy. The IT strategy entails redesigning of the
website so it can be more user friendly and secure, create a new information
system and enhance the system that is being used currently. The marketing strategy
is collecting supplies by creating a business-to-business relationship with
more stores and acquire more buyer & sellers to register.

Derived from (Porter, 1985) porter describes how business try to
gain a competitive advantage in their specific market area by using three
strategies that are Cost Leadership, Differentiation and Focus. He then divided
focus strategy in to two parts that are cost focus and differentiation
focus.  Cost Strategy is done by reduces
prices to a level below competitors own which stills creates a profit. Differentiation
strategy is putting out a product that is different and unique to all other
competitors that will gain customers. Focus strategy is achieving the other
strategies, Cost and Differentiation, in smaller markets so that market will
not be available to other competitors.


Derived from (Martinez, 2015) An Information
system or IS are accumulation of hardware, software and human resources used to
collect, store, organize, and distribute data throughout the
organization. Stated by (Euromed Marseille School of Management, 2014).

Figure 1:
Anthony’s Triangle showing the Different Types of Information System


Derived from (Ghaebi, 2016) There four main types of IS in an
organization and these fit in a hierarchical form of a pyramid which is named
the Anthony’s Triangle.  These are :

Executive Information Systems is located at the top of the pyramid, also known
as the strategic level, is used to assist high-ranking executives in making
decisions. It presents data and information to help achieve the strategic goals
of the business by predicting future state of it.




and Graphical simulations


of the business




Decision Support Systems this is an interactive system that provides information, diagrams and
data tools to help decision making in the company based on analytics.
Information can be simulated to see the outcome of the simulation or it can use
the actual data from the business to foresee the direction of the business.
When this is done decisions can be made


and statistical data


and statistical data


to queries made by staff




Management Information System is one of the systems that extracts data from
the TPS and turns into reports for the top managers for strategic decisions,
Middle managers for tactical decisions and operational managers for the
operation decisions in the business. It provides proper and accurate feedback
so the all the managers can monitor and direct their part of the organization


of Transaction Data from TPS


Low level analysis






Some examples of MIS are :

·       Sales Management

·       Inventory control

·       Staff Performance

Transaction Processing Systems- is the operational that is the last level of
the pyramid. This computerized system performs daily routine transactions
necessary to the conduct of the business.




Listing, Merging, updating, calculating 


reports, Summaries, Lists


Operational Manager  


 Some examples of TPS are:

·       Stock Control

·       Payroll

·       Billing


Importance of a Balanced Portfolio

A Balanced portfolio is
a method that is used to try balancing risk and returns on the market that
allows the investor or the owner to take advantage of the market. With this SO
can spread the risk by selling multiple products so if one fails the sales will
be continue on other products. When a range of products are sold the business will
generate enough returns.  





2.3. Marketing Information System for Shop Online

According to (Bernstein, 2017)  Marketing Information System or MkIS is
software and tools that allows the user to collect, arrange, analyse, access
and distribute data from different processes of the business such as sales,
productions cost and employee work output. When business owners examine the
data, it is then compared to old data and can change their strategies to profit
from the decisions.

Derived from (Bhasin, 2017)  Gaining
the competitive advantage in the new and growing markets is a priority. The
MkIS system has some advantages to achieve that which are:

1)     Organizing Data- Multiple types of
data can be gathered from markets and then organized to help with the
productivity of the business

2)     Storage- information is important in
all businesses. The MkIS stores data and without that data being stored
decisions will not be executed due to lack of resources.

3)     Avoiding Crisis- MkIS help to track
the past performance and profits. It will give points how to advert risks
before it happens

Disadvantages of the Marketing
Information System are

1)     Maintenance- price to update or do
any servicing may be expensive and may involve temporarily disrupting the
services that it provides

2)     The MkIS is complex and setting up
it is a challenge and lengthy

3)     The system can be fed wrong
information and throw of the review data and will become a task to solve that

2.4.  Purchasing VS Leasing

Derived from (S, 2016)
Purchasing is an arrangement where, in this case the MkIS, the seller who
creates or owns the product sells the product for a called price by owner. This
product then becomes yours and all risks and rewards follow with the ownership.

Leasing is defined as an arrangement
between the owner or the lessor and a lessee which is allowing the use of the
product for an agreed rental payment for each times scheduled by lessor. The
risks and rewards that are linked to the ownership are not transferred to the
lessee. At the end of the lese, the product is returned to the owner.

Buying the product would be suitable
for SO due to it being a long term and wanting to expand the business. When
they buy the product they will not have to depend on anyone to get a product
and even though there might be risk the business will get the rewards. If
leasing for a long term the rent would accumulate to the same amount the price
of the product or even more after a few years while in business.

Advantages of Purchasing

·       Money can be saved over the long

·       No penalties, you can do as you
please with the product

·       The product can be sold if it is not

Disadvantages of Leasing

·       You don’t own the product

·       Lessing has a contract or limit

·       The accumulation of the rent will be
more than price of the product in the long term


3.1.  Structural and Process Changes

According to (Cliff Notes, 2016) Changes in organizations can happen due
to either internal or external factors. Most of the time change happens to have
competitive advantage or just changing to the new tech and trends. There are
different type of changes that can happen in a company that are Strategic, structural,
Process Oriented and People centred.

·       Structural Change – This is the
Change of the hierarchical structure of the business that are the authority,
goals, administration processes and managements system. Change in management is
the change of structure in the business.

·       Process-Oriented Change – This is
redesigning of processes or implementing processes to achieve better
performance in the business. In other words these are work practices that are
values, ethics and culture in the workplace


3.1.1.     Structural Changes

Structural changes that would be
seen are:

·       Staff would be properly divided into
HR, Marketing, Customer Support, Logistics and IT staff which would include
Database administrators and Web developers

·       There would be a head for each
department who would relate information back to the CEO of the business 

·       There would be an increase of staff
members in departments due to the expansion of the business 

·       Offices would be made in each
country that SO is implemented for outputting packaging to customers

Process Changes

Process or work practice changes
would be seen are:

·       All process may turn automated

·       Staff roles and responsibilities
would change

·       The work hours for the Staff members
would be flexible and might be changed due to automation


3.2. Information System improving Processes and

Derived from (Bain & Company guide, 2017)Business Process
Re-engineering or BPR is where the processes are analysed, simplified and
upgraded. Utilizing the Information technology and information system,
businesses can re-examine and streamline their business procedures to enhance
speed, administration and quality. BPR revamps work processes and removes
repetitive task. It may even remove some jobs that are being done in the
business that would no longer be needed and would be labelled unproductive if
an Information system were implemented.

There are steps in undertaking the
BPR process quoted by (Bain & Company guide, 2017) that are:

“Refocus company values on customer
“Redesign core processes, often using
information technology to enable improvements”
“Reorganize a business into
cross-functional teams with end-to-end responsibility for a process”
“Rethink basic organizational and
people issues”
“Improve business processes across the

if shop online implements BPR in their business are:

·       Some of the complex processes can be
reduced or even eliminated

·       Serval jobs can be combined into one
due to simplification

·       Customers will be pleased with the
service that SO is outputting and would have the competitive edge in the market

·       More processes will be automated


3.3. Positive Impact of Information System on Shop

System benefits users by have the ability to get information to accomplish a





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