E-business Model
| Goldman Sachs → |
Testing hypothesis in order to answer the question which e-business model will the company adopt and how will they implement the new e-business model in the most prudent manner that will effectively work for the company and its customers against its competitors? it is indispensable to test the following hypothesis. in each hypothesis, a test based on the 95% confidence level will be employed to reject or accept the null hypothesis (kanji, 1999).
1. The customer focused e-business model will help the company in realizing its main objective of becoming a leading merchant of household appliances and electronic gadgets. to test this hypothesis, sales will be recorded from the time the company start implementing the new e-business model for a period of 12 months. the data collected will be compared with the data when the business was operating under the old model (12 months before). the mean (average) sales will be computed from the two sets of data. testing this hypothesis will also require comparing the mean market share of the company before and 12 months after the implementation of the new e-business model. the means from the sets of data will be analyzed using z-test (kanji, 1999).
2. The customer focused e- business model will enhance efficiency of online business. testing this hypothesis will require comparison of records 12 months prior to implementation and 12 months after implementation of the new model. data on the following parameters will be analyzed: the number of customers who gave a positive feedback, average time taken to successful complete an online transaction loop and the volume of sales. the mean and standard deviation of these parameters will be computed from the two sets of data (prior and after implementation of the new model). the sets of data will be analyzed using the z-test (kanji, 1999).
3. The new model will give the company a competitive advantage over its rivals. to test this hypothesis, the following parameters will be measured 12 months prior to and after implementation of the new business model: average number of new customers gained, average number of loyal customers and the average market share. the means of from the sets of data will be evaluated using the z-test (kanji, 1999)..
4. The new model will increase the level of royal customers and promote volume of online sales. to test this hypothesis, the following parameters will be measured 12 MONTHS BEFORE AND AFTER IMPLEMENTATION OF THE NEW e-business model: the number of customers who are regular users of online services of the company and the number of customers retained. the mean and standard deviation from the two sets of data will be computed. the difference in the two means for each parameter will be evaluated using the z-test (kanji, 1999).
5. Although the model is associated with high initial expenses, it will improve financial performance and position of the company in the long run. testing this hypothesis will require comparison of the financial position in terms of profitability and cutting expenses 12 months before and 12 months after implementation of the new e-business model. the mean difference between the sets of data will be computed using the z-test (kanji, 1999).
6. The new model will promote effective communication between the company and its customers and this will ensure that wrong goods are not delivered and that orders are not delayed and consequently establish a close relationship with the customers that will be beneficial to the company. testing this hypothesis will require the organization to determine the following elements: the average time taken to complete a communication loop before and after implementation of the e-business model and the number of wrong goods delivered 12 MONTHS BEFORE AND AFTER IMPLEMENTATION OF THE NEW model. z-test will be employed in evaluation of the difference between the means for each parameter (kanji, 1999).
7. The new model will enhance network architecture of its e-business by creating new data center facilities that will help in effectively monitoring its online business. testing this hypothesis will require determining the number of customer served online 12 months before and after the new model and the number of number of data center facilities before and after implementation of the new e-business model.
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