Unit of competency details

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to evaluate e business models and strategies, and to incorporate the results of these evaluations into the design of an e business solution.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Application of the unit 

This unit applies to individuals who possess skills and knowledge in a specialist business area, as well as knowledge of software and other technologies. They apply these skills and knowledge in the evaluation, selection and implementation of new strategies for business, which incorporate e business solutions. They may be managers responsible for overseeing these tasks as well as technical or other knowledge experts.

Prerequisite units 

Employability skills 

This unit contains employability skills.

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

ELEMENT 

PERFORMANCE CRITERIA 

1. Investigate e business opportunities

1.1. Undertake a competitive analysis to determine the likely impact new capabilities  will have on industry sectors and competitors

1.2. Complete and assess value chain analysis  to identify processes and relationships  that may benefit from the adoption of e-business solutions

1.3. Identify threats and opportunities  to e-business implementation and evaluate potential contributions to the business 

1.4. Conduct resource analysis to identify cost and revenue implications in developing opportunities

1.5. Identify and evaluate legal and ethical issues relating to e-business opportunities

2. Evaluate e business models

2.1. Identify and analyse business -to -business , business -to -consumer , intra-organisational e-business applications and e -business models 

2.2. Rank compatible e-business models in terms of their strengths and weaknesses, considering resourcing, technical and security requirements of each

2.3. Assess cost implications of implementation of e-business models

2.4. Determine an e-business model most appropriate in relation to business plan

3. Design an e business

3.1. Formulate purpose, objectives and values for the e-business

3.2. Identify target market, and value chain structure in accordance with chosen e-business model

3.3. Identify and obtain technical needs and expertise  required to implement e-business model

3.4. Investigate and develop plan to address culture change issues to manage transition to an e-business

4. Implement an e business strategy

4.1. Develop policies and guidelines  to support customers, supply chain and staff to ensure successful implementation

4.2. Monitor performance of business goals and adjust policies and procedures to respond to changing needs of customers, staff and supply chain

4.3. Review e-business systems and models, seeking feedback from users and personnel responsible for e-business implementation

4.4. Incorporate evaluation results and feedback to improve future e-business strategies

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

Required skills 

• analytical and problem-solving skills to assess information and apply to identified business needs
• communication skills to collaborate with technical experts and other staff
• literacy skills to identify and interpret market and product information.

Required knowledge 

• features of a range of software and hardware systems
• key provisions of relevant legislation from all forms of government that may affect aspects of business operations, such as:

• anti-discrimination legislation
• ethical principles
• codes of practice
• privacy laws
• copyright
• occupational health and safety

• organisational policies and procedures relating to the systems, products and/or service being worked with.

EVIDENCE GUIDE 

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment 

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

Evidence of the following is essential:

• evaluation of e-business opportunities involving new business models and not simply electronic versions of existing businesses
• rationale and supporting evidence for choice of e-business solution
• knowledge of relevant legislation.

Context of and specific resources for assessment 

Assessment must ensure:

• access to an actual workplace or simulated environment
• access to office equipment and networked computers
• documentation relating to analysis and strategies/policies for implementation.

Method of assessment 

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

• direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
• review of authenticated documents from the workplace or training environment
• demonstration of techniques in a workplace or simulated environment.

Guidance information for assessment 

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

• BSBEBU502AImplement e-business solutions
• IT use units.

RANGE STATEMENT 

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

New capabilities  may include:

• 24-hour operation
• automated marketing efforts
• communication
• distribution channel
• global reach
• online customer service
• online inventory
• online payments
• online purchasing
• online sales systems
• supply chain

Value chain analysis  may include:

• an analysis of a series of primary activities, such as:

• inbound logistics
• marketing and sales
• operations
• outbound logistics
• service support

• and their support activities, such as:

• business infrastructure
• human resources management
• procurement
• technological development

Processes and relationships  may include:

• customer service
• delivery of core services
• delivery of government services
• delivery of products
• development of new products, services and markets
• organisational structures
• trading communities

Threats and opportunities  may include:

• business to government (B2G) opportunities where e-business is conducted between an enterprise and the government
• business-to-business (B2B) opportunities where e-business is conducted between companies
• business-to-consumer (B2C) opportunities where e-business is conducted between an enterprise and a customer
• competition legislation
• disintermediation threats/opportunities where the role of 'middlemen' or other middle supply chain elements is reduced or made redundant as newer more efficient supply chain technologies are implemented
• infrastructure requirements: disaster recovery, failsafe systems
• internal business opportunities that improve productivity utilising e-business development
• re-intermediation opportunities, where e-business creates new value between producers and consumers
• risk management: payments, fraud etc.

Contributions to the business  may include:

• effect on:

• customer satisfaction ratings
• growth
• market share
• profitability
• return on investment
• sales
• staff morale i.e. using efficient technologies to enhance workplace
• staff productivity and professional development

Business -to -business  may include:

• involves e-business between organisations
• may be B2G (business to government)

Business -to -consumer  may include:

• involves e-business between an enterprise and a customer

E -business models may  include:

• aggregator models
• collaboration partners
• competitor cooperation model
• e-auction
• e-government
• e-mall
• e-office
• e-procurement
• e-shop/e-tailing
• information brokers
• micro-payments business model
• multilevel marketing
• portal
• tender services
• third party marketplaces
• trust services
• value chain integrators
• value chain service providers
• virtual community
• web rings

Technical needs and expertise  may include:

• advice on existing business strategy and base business versus growth business
• advice on staffing arrangements
• advice on technology issues/compatibility
• banking information for electronic funds transfer
• contact person
• feedback loops
• new protocols relating to legal or security issues for e-business
• open and international standards e.g. EAN.UCC or UN/EDIFACT
• personal identification and password for online access to business processes e.g. purchasing or supply

Policies and guidelines  may include:

• business ethics
• confidentiality
• electronic communication
• fraud prevention and detection
• human resources management
• information management
• intellectual property
• legal issues e.g. jurisdiction, contract validity, taxation
• outsourcing
• performance management
• privacy
• risk management
• security

Unit sector 

Competency field 

Information and Communications Technology - E Business

Co-requisite units