Reference no: EM132994402 , Length: 2500 Words

BSBTEC601 Review organisational digital strategy - International House Sydney

Task summary
This assessment is to be completed using the Bounce Fitness simulated work environment.
There are four parts to this assessment:
Part A requires you to develop a digital strategy review plan (using Appendix A)
Part B requires you to collect and analyse the information (using Appendix A)
Part C requires to determine review findings and outcomes (using Appendix B)
Part D: requires you to distribute outcomes and document recommendations of review (using Appendix C)

Task - Written Report

Case Study: Bounce Fitness Group
Bounce Fitness Company has now accepted that increasing their cash flow is important for sustained growth and to support a wider strategic goal of global market penetration. To this end they are looking to move further on their customer engagement strategy by exploring the potential revenue opportunities within their digital space (website and Facebook). As you have already explored social media, including paid, owned, and earned media as well as the user experience project around improving the usability of their digital assets. You have also highlighted a potential new eBusiness product ‘Micro-Loans"; the Board of Directors feels you are best placed to offer advice in this matter.

You have been asked to research the opportunities to turn their online presence into a revenue stream generating $1 million in profit in the first year. You are also instructed to act on behalf of Bounce Fitness Company to explore merchant accounts and payment facilities with financial institutions to support the digital strategy.

The project will include:
1. Research and develop a digital proposal; and
2. Negotiate a Merchant Account and Payment Gateway with a financial institution.

The Board of Directors have forecasted the following Key Performance Indicators (KPIs) for the digital strategy:

» Average $ sale per microloan: $1000
» Gross Profit Margin: 15%
» Conversion Rate: 0.12%

In addition to the relevant organisational policies and procedures contained on the Bounce Fitness simulated website, Case Study Organisation resources folder in Canvas and the background information about this topic you have learned throughout your term, there are a range of other documents and templates found in the Appendix section of this document to assist you complete the tasks.

Part A - Digital strategy review plan
For this task, Bounce Fitness company has asked you to design a way forward on setting up a payment facility for their products page on their website. Bounce Fitness requires you to conduct some research and provide them a digital strategy proposal they can review at the next Board meeting. You will be required to present your research findings using the Appendix A Digital Strategy Review Template.
You will find it useful to refer to the learning and activities in this module as they have sufficiently prepared you for this assessment task. You will also need to conduct some more research for certain areas of this proposal.

1 Channel Analysis (100 words)
By way of introduction to your proposal, prepare a convincing argument that outlines the opportunities for monetisation of the digital channel for Micro-Loans for Bounce Fitness.
Access Bounce Fitness various policies, procedures and review the course materials to determine which three of the following reasons are the most compelling (and why).
• Create new revenue streams for Bounce Fitness and therefore improve Cash flow
• Increased reach for a fitness business - taking advantage of global connectivity by reaching customers located outside Bounce Fitness geographic target
• Offer new solutions to customer needs
• Increase ROI on the Digital Channel
• Increase customer engagement
• Sell more products and services

1.1 Channel Strategy - The Monetization for Bounce Fitness (50 words)
Articulate the existing and proposed addition to Bounce Fitness channel strategy. Identify at least one potential digital channel from the list below and give reasons for the consideration. You may want to consider devices in your answer.
• Company website
• Facebook
• Instagram
• EBay
• Fishpond
• Other social sites or intermediary (you must research and provide information)
• Devices (e.g., mobile, tablet, smart watches, PDAs, etc.)

1.2 Digital Marketing Considerations (100 words)
What Digital Marketing considerations exist? Include an assessment of paid, owned, and earned engagement opportunities for the new micro-loans business idea and ideally the role each of these including the opportunity you identify to enhance the monetization of the digital channel for Bounce Fitness Company.

1.3 Bounce Fitness Digital Ecosystem (100 words)
Consider the elements of a Digital Ecosystem from the course materials and prepare a discussion around Bounce Fitness Group's Digital Ecosystem. Consider in your answer:
• How the monetisation of the Digital Channel may impact Digital Content, Customer Contact Management, Social Media, and Digital Marketing.
• The date and time when the digital strategy review plan was shared with stakeholders.
• The date when the plan was approved.

Part B - Review Prior Experience

2.1.1 Internal Research - ROI on Existing Sales (50 words)
Calculate the ROI of Bounce Fitness Group's Marketing Activity for microloans using the formula covered in this course (you must show your working out). Compare your answer to the ROI for the broader business. You should refer to the financial reports for Bounce Fitness as well as the information in this module.

2.1.2 Internal Research - Review Site Analytics (50 words)
Outline your approach to Site Analytics for Bounce Fitness. Include how Analytics can be accessed and what the reports can provide.

2.1.3 Internal Research - Review Inventory Management (100 words)
What approach would be appropriate for the management of inventory of fitness product stock availability. How does this approach cater for peak periods of customer purchasing which is expected with online payment facilities? Include in your answer what brand and financial risks become apparent here.

2.1.4 Internal Research - Review Resource Management (50 words)
How does monetization of digital channels impact our human capital (employees)? Does this strategy require more staff? Less staff? Staff with different skill sets? What are the impacts on other teams such as operations, customer service, finance, marketing, and product buying teams?

2.1.5 Internal Research - Review Cash Flow (50 words)
Does Bounce Fitness have the liquidity to handle seasonal peaks and troughs in online purchases? What KPI in this monetization strategy will work towards offsetting the initial costs incurred for this strategy?

2.2
Conduct External Research
2.2.1 External Research - Competitive Intelligence (50 words)
Who will our competitors be in the micro-loan market? What sources of information can we tap into to remain abreast of competitive information like this?

2.2.2 External Research - Research Partners (50 words)
Identify three sources of research information which could help Bounce Fitness in the analysis and ongoing development of the micro-loan business and that market segment generally.

2.2.3 Legal Considerations and Organisational Policy (100 words)
What are Bounce Fitness Transaction Obligations, Service Obligations, Marketing Obligations, Privacy Obligations in relation to this monetization project? Identify issues related to digital strategy in the organisational documents accessed. Consider the World Wide Web Consortium (WC3) - what considerations should Bounce Fitness's organisational policies and procedures have in this regard?

2.3 Identify Potential issues or barriers to Streamlined Transactions (100 words)
What are three issues to streamlined transactions and how could Bounce Fitness overcome them?

2.4 Benchmarking
2.4.1 SEO (100 words)
Using Google Keywords Planner Tool, locate high and low performing search terms for a micro-loans business. Identify long tail search terms (including number of searches per month, and competitiveness of each term as high or low). Are there any terms that could be a Key Opportunity for Bounce Fitness? You should include a screen shot of your keywords report.
2.4.2 Engagement (100 words)
Conduct an assessment on the current customer engagement using these methods:
1. Time spent on website and significant landing pages
2. Time spent on social media
3. Customers responses to posts, infographics, videos, and other content
4. Rates of customers sharing, tweeting and general social involvement
5. Sales opportunities
Include in your answer the concept of ‘social listening'. How can this be incorporated into benchmarking engagement and are there any social listening tools that you recommend?

2.4.3 Existing Website Traffic (30 words)
What approach to website traffic tracking and management would be appropriate for this monetization strategy? What key data points would be applicable (e.g., repeat visitors etc.)? Is this an opportunity to increase geographical reach (how and why)?

2.4.4 Establish KPIs (150 words)
When generating sales online, what are the 5 Important Considerations? How is this linked to Optimisation and provide an example based on the known criteria of $1Million profit?

3 Development Plan (Select & Implement Tools and Technologies)
3.1 Organisational Impact
3.1.1 An Agile Team (150 words)
Is there a need for an Agile approach? Explain Agile methodologies as they impact marketers. What are the benefits? Include the key benefits of taking an Agile approach over a Waterfall approach.

3.2 Development Plan
3.2.1 Customer Trust (100 words)
What is customer trust in this project and why is it important? What are three consumer recommended approaches to building trust? Are there any specific KPIs relating to retention and loyalty that could be considered important?

3.2.2 Ensuring Sales Success (100 words)
What are three methods for improving point-of-sale content with the purpose of closing the sale in the context of Bounce Fitness? What highlights can you draw upon from the existing Bounce Fitness? Is the website customer-centric (why)?

3.2.3 Content Strategy (150 words)
What recommendations do you have regarding content strategy as it relates to this monetization strategy? Should it be its own project or strategy or part of this project? How does content strategy planning affect transaction enablement in this monetization project? Can you provide a short example of a Content Plan? You may need to conduct some research to complete this section.

3.2.4 Project Plan (50 words)
Using a simple excel spreadsheet, develop a Website Development Plan with a timeline on Bounce Fitness website development in line with this monetization strategy. You may need to conduct some research to complete this section.

3.2.5 Testing and Stabilisation Plan (50 words)
Outline your approach to Alpha/Beta Testing (A/B Testing). Include in your answer at least three common errors that impede sales.

3.3 Transaction Enablement Partners (100 words)
Draw a flow chart/schematic showing the user journey and process between the customer and ETG for online purchase. Ensure you include the following elements:
• Customer
• Order process
• Online store
• Payment Gateway
• Payment Processor
• Bank
• Merchant (Bounce Fitness)

3.3.1 Payment Gateway (100 words)
Drawing from your ‘Compare Payment Gateway' activity in this module, what is your recommendation for a particular payment gateway product? Include in your answer a comparison table such as that in your learning materials. As well as a rationale of why you selected that payment gateway product.

3.3.2 Financial Institution (50 words)
Conduct some research on Merchant Accounts taking into consideration:
• Volume Commitments
• Contract Terms
• Settlement Terms
• EFTPOS considerations
• Interchange rates and fees
And how all these relate to sales volume of Bounce Fitness company.

3.3.3 eCommerce Platform (150 words)
Conduct some research on eCommerce vendors. Provide a short evaluation of the platforms available and select one that is suitable to large enterprises like Bounce Fitness. Outline why this is suitable to Bounce Fitness's monetization project.

3.3.4 Authentication & Security Considerations (100 words)
Explain authentication and security requirements and why is it important factor to the monetization of Bounce Fitness's digital channels? Specify the authentication and security requirements for the Payment Gateway you selected.

3.3.5 Analytics (100 words)
Outline your approach to analytics relating to transaction data. Provide a summary of three systems that can be used and the data available for analysis.

Part C - Determine review findings and outcomes

This part provides you an opportunity to display your ability to negotiate with a financial institution for the purposes of merchant account and payment gateway facilities.
Case Study: Bounce Fitness Company
As part of your research and to ensure you have sufficient information to assist in your final evaluation report to come later, you are required to engage with a financial institution to determine review findings and outcomes and seek advice on merchant account and payment gateway options for Bounce Fitness.

A meeting has been arranged between yourself and Martin from First Choice Bank. Martin is a Business Banking Consultant at First Choice Bank who specialises in SME and Corporate clients. His role involves understanding customer's business banking needs and matching products and services to the needs and requirements of business customers.

For Martin to put together a Merchant Customer Proposal and prepare recommendations for actions to improve digital strategy, he will need some information about Ethical Trading company's commercial operations and their needs in relation to merchant accounts and payment gateways.

As you are representing Bounce Fitness it is also a condition and expectation that you will present yourself professionally.

For this activity, you will be simulating a negotiation meeting with a financial institution wherein you will discuss preliminary findings and provide the Bank with relevant information pertaining to Bounce Fitness, identified issues, its operations and monetization plans to help ascertain the best Merchant Account and Payment Facility for the project.
There are five (5) recordings available under additional resources for Task 2 on Canvas that you must listen to and write your response in the space provided. A Transcript of each recording is in Appendix B. Write your response to each recording in the space provided using Appendix B. (Approx. 300 words)
Recording 1
a) Listen to Recording 1 from the Banker at the financial institution.
b) In your own words respond to the Banker's question. Ensuring your response includes information about:
o Bounce Fitness and its organisational structure
o Projected revenue for the year
o Outline of the Micro-loan project
o Forecasted revenue of the Micro-loan business
o Purpose of the meeting - seeking information to advise Bounce Fitness Board of Directors
o Annual Profit KPI of the Micro-Loan Business
o Reason why you are engaging a financial institution
Recording 2
a) Listen to Recording 2 from the Banker at the financial institution.

b) In your own words respond to the Banker's question. Ensuring your response includes information about:
o Answers for both lines of business (retail and digital channel)
o Includes number of transactions per month, average dollar value for each sale
o Potential for repeat transactions, conversion rates and margin
Recording 3
a) Listen to Recording 3 from the Banker at the financial institution.
b) In your own words respond to the Banker's question. Ensuring your response includes information about:
o Transaction rates
o Fees and charges
o Interchange charge rates
o Settlement of funds clearance times
o Account Contract term
If you have time, it would be great to find out:
o POS or EFTPOS support available and Terminal charges
o Foreign exchange transaction charges
o Payment Gateway services on offer and security features
o Request a sample of a bank statement for merchant accounts
Recording 4
a) Listen to Recording 4 from the Banker at the financial institution.
b) In your own words respond to the Banker's question. Ensuring your response includes information about:
o Whether there are savings for Bounce Fitness by brining other business to the bank
o Non-contact charges applicable
o Reinforcing the Internet Merchant account that offers EFTPOS facilitates for retail stores and any applicable rates
o Focus is on online payment gateways but whether further savings can be made with the adoption of retail outlet EFTPOS facilities

Recording 5
a) Listen to Recording 5 from the Banker at the financial institution.
b) In your own words respond to the Banker's question. Ensuring your response includes information about:
o If rates can be gained that are not published on their advertising (internet and brochures)
o If revenue increases are further savings possible
o Interest rate on funds in the account and how/when they are paid
o What payment gateways integrate with the account and any API for this
o Wholesale rates can we buy funds from your bank
o What payment gateways do you offer

Part D: Performance Evaluation & Distribution Plan

Use Appendix C to complete Part D.

1 Reporting and Evaluation Process
1.1 Recommended Process for reporting and Evaluation
1.1.1 Method (150 words)
Considering the data sources that you evaluated in the last section of your proposal (Analytics), what ERP solution is suitable for Bounce Fitness?

1.1.1 Timing (150 words)
Outline your approach to the frequency of distributing and reporting financials (including your rationale). Ensure your answer includes company financial reporting patterns as well as the regularity of sales reporting. Can you draw links with Australian government requirements for financial and accounting reporting?

1.2 Tools for Data Collection and Analysis (150 words)
Expand on the ERP solution from the ‘method' section of this assessment. Outline the data points or analytics it can provide and how this is of benefit to the performance evaluation process for this project.

1.3 Plan for Gap Analysis and Improvement
1.3.1 Monetization Vision and Goals (100 words)
Based on the revenue target, the ROI you calculated in the proposal, and the data you gathered regarding potential opportunities and projected sales etc., summarise these in a vision statement with key metrics for the following:
• Profit
• Marketing ROI
• Leads
• Conversion rate
• Repeat Purchases
• Micro-loan Revenue
• Marketing Budget
• Gross Profit (GP)

1.3.2 Gap Analysis (150 words)
Consider the Marketing ROI for the Microloan business against the rest of the business, what does a Gap Analysis identify? Is this in front or behind the benchmarks? What is the target-spend for marketing? How can improvement be gained?

1.3.3 Roadmap (150 words)
Draw a table that shows the current state and future state (goals) with suggested target improvements in conversion and margin achieving a stronger ROI.

1.4 Digital Dashboard (150 words)
The Board of Directors are considering bringing in electronic reporting dashboards to assist in the monitoring and reporting of the project's effectiveness. Draw a picture/schematic of a Digital Dashboard showing the KPIs and Benchmarked data for the Microloan business ensuring you include all the data points and transaction and sales data you have recommended and included in your proposal and this performance evaluation and improvement plan. As a minimum you should include:
• Sales data
• Geographic reach
• KPIs
o Profit
o Marketing ROI
o Leads
o Conversion Rate
o Repeat Business
o Microloan revenue
• Marketing budget
• Web traffic
• Engagement
• Best performing keywords
• Best performing advertisements
• Other data you feel is important

Attachment:- Review organisational digital strategy.rar