How To Understand The Benefits Of An Online Business

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Cambridge TECHNICALS OCR LEVEL 2 CAMBRIDGE TECHNICAL CERTIFICATE/DIPLOMA IN IT DOING BUSINESS ONLINE Y/601/5083 LEVEL 2 UNIT 21 GUIDED LEARNING HOURS: 60 UNIT CREDIT VALUE: 10

DOING BUSINESS ONLINE Y/601/5083 LEVEL 2 AIM AND PURPOSE OF THE UNIT The number of businesses offering an online presence has increased over the last few years and in order for a business to succeed it has almost become essential that they offer their products or services online. Before a business considers going online they would need to be made aware of the issues and benefits of having an online presence. They would also require some kind of understanding of the types of business activities that could be available and what they would need to consider when setting up an online business. This unit will provide learners with the knowledge to understand the different online business activities, what is involved in planning to set up an online business and any risks involved with this. Finally, learners will understand the operational and financial issues around setting up and running an online business and how a small business can benefit from having an online presence. www.ocr.org.uk 2

Doing Business Online Level 2 Unit 21 ASSESSMENT AND GRADING CRITERIA Learning Outcome (LO) Pass Merit Distinction The learner will: The assessment criteria are the pass requirements for this unit. The learner can: To achieve a merit the evidence must show that, in addition to the pass criteria, the learner is able to: To achieve a distinction the evidence must show that, in addition to the pass and merit criteria, the learner is able to: 1 Know about different online business activities 2 Know what to consider when setting up an online business 3 Understand the operation of an online business 4 Understand the benefits of an online business presence P1 describe online business activities P2 outline the planning issues to consider when setting up a business online P3 describe the potential risks to an organisation when operating online P4 explain the operational and financial issues for an online business P5 explain how small businesses can benefit from a web presence M1 compare the purposes of different online businesses M2 identify how potential risks to an online business can be overcome M3 describe potential disadvantages from having a web presence D1 provide planning documentation for setting up an online business D2 compare antivirus software suitable for an online business website 3

TEACHING CONTENT The unit content describes what has to be taught to ensure that learners are able to access the highest grade. Anything which follows the i.e. details what must be taught as part of that area of content. Anything which follows an e.g. is illustrative, it should be noted that where e.g. is used, learners must know and be able to apply relevant examples to their work though these do not need to be the same ones specified in the unit content. LO1 Know about different online business activities business activities ecommerce government information marketing/advertising education/training communication financial, (e.g. online banking). purposes selling products online banking buying and selling (auctions) ebooks (reading) elearning (delivery training/teaching) chat to friends/make new friends. sectors retail education government social third sector financial. LO2 Know what to consider when setting up an online business planning domain name web server designs, (e.g. user interface requirements, ease of use) cost timescales developer, (e.g. professionally created or inhouse within the business) hardware software security, (e.g. antivirus, SSL, passwords) business objectives. documentation domain name example and availability web server provider a design for a web page cost estimate timescale estimates hardware examples software examples. LO3 Understand the operation of an online business potential risks security of data loss of data equipment and/or software failure hacking fraud. overcome risks antivirus software firewall passwords user rights backup. operational issues website updates staffing levels internet connection payment methods distribution capacity. financial issues cost of equipment, (e.g. hardware and software) development costs set up costs maintenance costs. Comparison of antivirus software price number of licences features help and support. www.ocr.org.uk 4

Doing Business Online Level 2 Unit 21 LO4 Understand the benefits of an online business presence benefits 24/7 global customer base less overheads convenience visual presence marketing. potential disadvantages cost of website maintenance, (e.g. updating information, keeping website up to date) downtime expertise staff training constant competition from other businesses on a global scale as opposed to local scale. 5

DELIVERY GUIDANCE Know about different online business activities Learners working as a group could be provided with a list of the different online business activities from the Teaching Content and asked to research real examples of each (e.g. an example of an ecommerce website would be Play.com). The examples could then be fed back to the group in order to check that they are correct. Learners should identify the purpose of the online businesses they have researched. Know what to consider when setting up an online business Learners could identify what would be required in order to create an online business presence. This could be done in the form of mind mapping in small groups where learners are encouraged to identify as many items as possible that they feel would be required to create an online business presence. This information could then be fed back to the group to ensure that they have identified all of the planning items as outlined in the Teaching Content. Learners will need to be taught how to find an appropriate domain name, check its availability and its cost. They would also need to be taught how to find examples of web servers and the costs involved in using them. Learners should be encouraged to carry out research in order to identify the kinds of hardware and software a business would need to use in order to create and maintain their online presence. They should also research the costs and design templates that might be available if a website development company was employed to create the website. Once the learners have done their research they could then feedback to the group so their research could be checked for accuracy. Learners could also be asked to consider the operational and financial issues that online businesses may face, with each group perhaps looking at different types of business or sector. This information could then be fed back to the group to ensure that they have identified all of the issues as listed in the Teaching Content. Learners require the skills to be able to compare different antivirus software products which are suitable for an online business. A selection of antivirus software products could be identified and then each product could be given to a different learner. After the learner has carried out some research they could be placed in small groups so they could discuss the price, number of licences, features and help and support for all of the products to see if they could identify the best product and why taking into consideration operational and financial issues. Understand the benefits of an online business presence Learners could work in small groups to identify the benefits and disadvantages of having an online presence. The information could then be fed back to the full group to ensure that they have identified the full list as provided in the Teaching Content. Learners will need to be taught about the requirements for planning documentation to include the required content. Understand the operation of an online business Learners could work in small groups to try to identify the kind of risks an online presence could have; and feed back to the group, ensuring all items in the Teaching Content have been covered. Learners working in small groups could be provided with a risk/threat (e.g. security of data, loss of data, equipment or software failure, hacking, fraud) and asked to research how they could prevent it. Once each group has identified at least two ways to prevent their risk/threat, then these could be fed back to the group to ensure they are correct. www.ocr.org.uk 6

Doing Business Online Level 2 Unit 21 SUGGESTED ASSESSMENT SCENARIOS AND TASK PLUS GUIDANCE ON ASSESSING THE SUGGESTED TASKS Assessment Criteria P1, M1 The assessment criterion P1 could be evidenced by the use of a report or presentation supported by tutor observation and/or recorded evidence. Learners should describe all of the online business activities as listed in the teaching content section. They could also provide examples of websites which demonstrate each of the business activities through selected screen prints from the sites. The merit criterion M1 requires the learner to compare the purposes of different online businesses. Learners should compare a range of (three or more) online businesses from different sectors to aid their comparison as detailed in the teaching content section. This could be presented in the form of a table, report or presentation with speaker notes or video evidence. Assessment Criteria P2, D1 The assessment criterion P2 could be evidenced by the use of a mind map, diagram, report or presentation. Learners should include in outline each of the planning considerations identified in the teaching content section. The merit criterion M3 could be evidenced in the report or presentation created for P5 as an extension to this activity. Learners should describe the potential disadvantages of having a web presence as outlined in the teaching content section. SUGGESTED SCENARIOS a local small business is thinking of having an online presence you are thinking of setting up a new online business. Resources learners will need access to appropriate software (word processing, spreadsheets) learners will also need access to the internet learners may require access to a scanner if they decide to create a hand drawn design of a webpage. The distinction criterion D1 should expand on their outline and provide evidence of the planning documentation for setting up an online business. Assessment Criteria P3, P4, M2, D2 The assessment criteria P3 and P4 could be evidenced by the use of a report, a leaflet or a presentation. P3; Learners must describe the potential risks, as outlined in the teaching content. P4; Learners must explain the operational and financial issues as outlined in the teaching content section. The merit criterion M2 should be an extension of the evidence presented for P3, P4 where learners must identify how the potential risks can be overcome. The distinction criterion D2 could be evidenced by the use of a table, report or leaflet on antivirus software or a presentation supported by tutor observation and/or recorded evidence. Learners are required to compare a range (three or more) of antivirus software, using the list detailed in the teaching content. Assessment Criteria P5, M3 The assessment criterion P5 could be evidenced by the use of a report or presentation and/or recorded evidence. Learners should explain how small businesses can benefit from having an online presence. They should explain each of the benefits as outlined in the teaching content section. 7

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Doing Business Online Level 2 Unit 21 MAPPING WITHIN THE QUALIFICATION TO THE OTHER UNITS Unit 9: Website development LINKS TO NOS 7.11: Supplier Management 9

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