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What role does ICT play in the business?

As an online business, ICT does, of course, play a vital role. The business does not exist without ICT. The 'shop' has no 'physical' presence and exists only in cyberspace. There are many benefits to being an online business but there are also disadvantages. Some of these are explored in Biz/ed's Business Online resource.

Image: The Spextacular Web site - ICT plays a vital role in the success of the business.

Back Office System

When running an e-tailer, it is important to have a 'Back Office' system which keeps all the customer details such as name, address, email details and order history. The system also sends out automatic email notifications of order status and supports the production of delivery notes and invoices through the database. This system also enables Chris to have detailed records about her customers and the ability to send them newsletters and vouchers as well as any other marketing promotions. Chris can use this to develop a relationship with her customers and encourage repeat purchases and recommendations.

Process Checks

The Back Office System also enables process checks to be built into the Web site. For example, customers cannot continue past certain parts of the Web site without completing particular information. This includes 'signing' to say they have read the Terms and Conditions or ensuring they enter their prescriptions.

Content Management System

The CMS (Content Management System) of the Web site is very important for a small business. This means that Chris is able to update all pages of the Web site herself on a WYSIWYG (What you see is what you get) basis and does not need specialised programming skills. This is an important aspect of e-tailing as the site needs to be kept fresh and new to encourage customers to visit it regularly.

Also Chris has to be able to add new products and/or to change the prices as necessary. She is also able to highlight special offers or promotions to encourage sales.

Merchant Account

Before Spextacular was able to take payments online via credit or debit cards, Chris had to set up a Merchant Account through one of the banks. Chris uses Streamline and Natwest for this facility. She has to take as much care as possible to avoid fraudulent transactions or she, as the trader, would have to bear the loss of any card misuse.

Payment Service Provider

As well as a merchant account, Chris also has to use a Payment Service Provider, Protx, who send transaction registration information in an encrypted form between her customers and herself.

It works in the following way:

• The customer decides to purchase from Spextacular so they submit their order and delivery details. When the customer hits 'pay', their browser sends an https post to Protx. This includes details of the amount spent; a description of the goods; a unique identification number and a notification URL (Protx return the data to this URL after the transaction).
• The customer is redirected to Protx's secure payment gateway where they enter their card details. Their system compiles transaction information (including foreign exchange details), and verifies this with the merchant's bank. Their system then redirects the customers browser to the notification URL at Spextacular.
• An email is sent to Spextacular and the customer to notify them of the transaction. At the end of the day, each transaction is included in a batch settlement.
• Protx then posts the settlement file to Chris's merchant bank.

Encrypted Security Systems

Spextacular takes every possible step to make sure that data is secure. They use Secure Socket Layers (SSL), an advanced Internet security system, to protect the data provided by customers. This means that all their ordering information (including name, address and credit card number) will be encrypted or jumbled up while it is in transit making it extremely difficult to read even if it is incorrectly intercepted. As a result, customer credit card and billing information is kept secure on its way to Spextacular. Most browsers support SSL.

Site Statistics

ICT also provides Chris with site statistics so she is able to monitor what is happening in terms of how many visitors she has to the site, how long they stay, how many hits there are, what the most popular times for visits to her site are, what countries visitors are from and other helpful data which Chris can use to try to increase visitor traffic.

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