Ecommerce 2015 business technology society eleventh edition global

Chapter 3 Building an E-commerce Presence Copyright © 2015 2016 Pearson Education, Inc. Ltd.

Class Discussion USA Today Redesigns n What were USA Today’s objectives in redesigning its e-commerce presence? n What considerations, if any, unique to the newspaper business were involved? n What did USA Today do to meet the needs of mobile device users? Copyright © 2016 Pearson Education, Ltd. Slide 1 -3

Imagine Your E-commerce Presence n What’s the idea? v Vision v Mission statement v Target audience v Intended market space v Strategic analysis v Marketing matrix v Development timeline v Preliminary budget Copyright © 2016 Pearson Education, Ltd. Slide 1 -4

Imagine Your E-commerce Presence (cont. ) n Where’s the money? v Business model(s): n Portal, e-tailer, content provider, transaction broker, market creator, service provider, community provider (social networks) v Revenue model(s): n Advertising, subscriptions, transaction fees, sales, and affiliate revenue Copyright © 2016 Pearson Education, Ltd. Slide 1 -5

Imagine Your E-commerce Presence (cont. ) n Who and where is the target audience? v Describing your audience n Demographics v Age, gender, income, location n Behavior patterns (lifestyle) n Consumption patterns (purchasing habits) n Digital usage patterns n Content creation patterns (blogs, Facebook) n Buyer personas Copyright © 2016 Pearson Education, Ltd. Slide 1 -6

Imagine Your E-commerce Presence (cont. ) n Characterize the marketplace v Demographics v Size, growth, changes v Structure n Competitors n Suppliers n Substitute products n Where is the content coming from? v Static or dynamic? Copyright © 2016 Pearson Education, Ltd. Slide 1 -7

Imagine Your E-commerce Presence (cont. ) n Know yourself—SWOT analysis n Develop an e-commerce presence map n Develop a timeline: Milestones n How much will this cost? v Simple Web sites: up to $5000 v Small Web start-up: $25, 000 to $50, 000 v Large corporate site: $100, 000+ to millions Copyright © 2016 Pearson Education, Ltd. Slide 1 -8

SWOT Analysis Figure 3. 1, page 177 Copyright © 2016 Pearson Education, Ltd. Slide

E-commerce Presence Map Figure 3. 2, page 178 Copyright © 2016 Pearson Education, Ltd.

Building an E-commerce Site: A Systematic Approach n Most important management challenges: v. Developing a clear understanding of business objectives v. Knowing how to choose the right technology to achieve those objectives Copyright © 2016 Pearson Education, Ltd. Slide 1 -11

Pieces of the Site-Building Puzzle n Main areas where you will need to make decisions: v Human resources and organizational capabilities n Creating team with skill set needed to build and manage a successful site v Hardware/software v Telecommunications v Site design Copyright © 2016 Pearson Education, Ltd. Slide 1 -12

The Systems Development Life Cycle n Methodology for understanding business objectives of a system and designing an appropriate solution n Five major steps: v Systems analysis/planning v Systems design v Building the system v Testing v Implementation Copyright © 2016 Pearson Education, Ltd. Slide 1 -13

Web Site Systems Development Life Cycle Figure 3. 5, Page 182 Copyright © 2016

System Analysis/Planning n Business objectives: v List of capabilities you want your site to have n System functionalities: v List of information system capabilities needed to achieve business objectives n Information requirements: v Information elements that system must produce in order to achieve business objectives Copyright © 2016 Pearson Education, Ltd. Slide 1 -15

Table 3. 2, page 183 Copyright © 2016 Pearson Education, Ltd. Slide 4 -16

Systems Design: Hardware and Software Platforms n System design specification: v Description of main components of a system and their relationship to one another n Two components of system design: v Logical design n Data flow diagrams, processing functions, databases v Physical design n Specifies actual physical, software components, models, and so on Copyright © 2016 Pearson Education, Ltd. Slide 1 -17

Logical Design for a Simple Web Site Figure 3. 6 (a), Page 185 Copyright

Physical Design for a Simple Web Site Figure 3. 6 (b), Page 185 Copyright

Build/Host Your Own vs. Outsourcing n Outsourcing: Hiring vendors to provide services involved in building site n Build own vs. outsourcing: v Build your own requires team with diverse skill set; choice of software tools; both risks and possible benefits n Host own vs. outsourcing Hosting: Hosting company responsible for ensuring site is accessible 24/7, for monthly fee v Co-location: Firm purchases or leases Web server (with control over its operation), but server is located at vendor’s facility v Copyright © 2016 Pearson Education, Ltd. Slide 1 -20

Choices in Building and Hosting Figure 3. 7 Page 186 Copyright © 2016 Pearson

Insight on Business: Class Discussion Weebly Makes Creating Web Sites Easy n What value does Weebly offer to small businesses? n Are there any drawbacks to using Weebly to create an e-commerce presence? n How are service providers like Weebly changing the nature of e-commerce? Copyright © 2016 Pearson Education, Ltd. Slide 1 -22

Testing, Implementation, and Maintenance n Testing v Unit testing v System testing v Acceptance testing n Implementation and maintenance: v Maintenance is ongoing v Maintenance costs: Similar to development costs v Benchmarking Copyright © 2016 Pearson Education, Ltd. Slide 1 -23

Factors in Web Site Optimization Figure 3. 10, Page 193 Copyright © 2016 Pearson

Simple vs. Multi-tiered Web Site Architecture n System architecture v Arrangement of software, machinery, and tasks in an information system needed to achieve a specific functionality n Two-tier v Web server and database server n Multi-tier v Web application servers v Backend, legacy databases Copyright © 2016 Pearson Education, Ltd. Slide 1 -25

Two-Tier E-commerce Architecture Figure 3. 11(a), Page 195 Copyright © 2016 Pearson Education, Ltd.

Multi-Tier E-commerce Architecture Figure 3. 11(b), Page 195 Copyright © 2016 Pearson Education, Ltd.

Web Server Software n Apache v Leading Web server software (51% of market) v Works with UNIX, Linux operating systems n Microsoft’s Internet Information Server (IIS) v Second major Web server software (12% of market) v Windows-based Copyright © 2016 Pearson Education, Ltd. Slide 1 -28

Table 3. 4, Page 196 Copyright © 2016 Pearson Education, Ltd. Slide 4 -29

Site Management Tools n Basic tools v Included in all Web servers n Verify that links on pages are still valid n Identify orphan files n Third-party software for advanced management v Monitor customer purchases, marketing campaign effectiveness, and so on v Webtrends Analytics 10, Google Analytics Copyright © 2016 Pearson Education, Ltd. Slide 1 -30

Dynamic Page Generation Tools n Dynamic page generation: v Contents stored in database and fetched when needed n Common tools: v CGI, ASP, JSP, ODBC, JDBC n Advantages v Lowers menu costs v Permits easy online market segmentation v Enables cost-free price discrimination v Enables content management system (CMS) Copyright © 2016 Pearson Education, Ltd. Slide 1 -31

Application Servers n Web application servers: v Provide specific business functionality required for a Web site v Type of middleware n Isolate business applications from Web servers and databases v Single-function applications being replaced by integrated software tools that combine all functionality needed for e-commerce site Copyright © 2016 Pearson Education, Ltd. Slide 1 -32

E-commerce Merchant Server Software n Provides basic functionality for sales v Online catalog n List of products available on Web site v Shopping cart n Allows shoppers to set aside, review, edit selections, and then make purchase v Credit card processing n Typically works in conjunction with shopping cart n Verifies card and puts through credit to company’s account at checkout Copyright © 2016 Pearson Education, Ltd. Slide 1 -33

Merchant Server Software Packages n Integrated environment that includes most of functionality needed n Key factors in selecting a package v v v v v Functionality Support for different business models, including (m-commerce) Business process modeling tools Visual site management and reporting Performance and scalability Connectivity to existing business systems Compliance with standards Global and multicultural capability Local sales tax and shipping rules Copyright © 2016 Pearson Education, Ltd. Slide 1 -34

Web Services and Open-Source Options n Options for small firms v Hosted e-commerce sites n Offer site building tools and templates n Example: Yahoo’s Stores Professional v Open-source merchant server software n Enables you to build truly custom sites n Requires programmer with expertise, time Copyright © 2016 Pearson Education, Ltd. Slide 1 -35

Choosing Hardware n Hardware platform: v Underlying computing equipment needed for e-commerce functionality n Objective: v Enough platform capacity to meet peak demand without wasting money n Important to understand the factors that affect speed, capacity, and scalability of a site Copyright © 2016 Pearson Education, Ltd. Slide 1 -36

Right-Sizing Your Hardware Platform: The Demand Side n Customer demand: v Most important factor affecting speed of site n Factors in overall demand: v v v v Number of simultaneous users in peak periods Nature of customer requests (user profile) Type of content (dynamic vs. static Web pages) Required security Number of items in inventory Number of page requests Speed of legacy applications Copyright © 2016 Pearson Education, Ltd. Slide 1 -37

Right-Sizing Your Hardware Platform: The Supply Side n Scalability: v Ability of site to increase in size as demand warrants n Ways to scale hardware: v Vertically n Increase processing power of individual components v Horizontally n Employ multiple computers to share workload v Improve processing architecture Copyright © 2016 Pearson Education, Ltd. Slide 1 -38

Table 3. 8, Page 207 Copyright © 2016 Pearson Education, Ltd. Slide 4 -39

Table 3. 9, Page 208 Copyright © 2016 Pearson Education, Ltd. Slide 4 -40

Other E-commerce Site Tools n Web site design: Basic business considerations v Enabling customers to find and buy what they need n Tools for Web site optimization v Search engine placement n Metatags, titles, content n Identify market niches, localize site n Offer expertise n Links n Buy ads n Local e-commerce Copyright © 2016 Pearson Education, Ltd. Slide 1 -41

Table 3. 10, Page 209 Copyright © 2016 Pearson Education, Ltd. Slide 4 -42

Table 3. 11, Page 210 Copyright © 2016 Pearson Education, Ltd. Slide 4 -43

Tools for Interactivity and Active Content n CGI (Common Gateway Interface) n ASP (Active Server Pages)/ASP. NET n Java, JSP, and Java. Script n Active. X and VBScript n Cold. Fusion n PHP, Ruby on Rails, Django n Web 2. 0 design elements: v Widgets, mashups Copyright © 2016 Pearson Education, Ltd. Slide 1 -44

Personalization Tools n Personalization v Ability to treat people based on personal qualities and prior history with site n Customization v Ability to change the product to better fit the needs of the customer n Cookies v Primary method to achieve personalization Copyright © 2016 Pearson Education, Ltd. Slide 1 -45

The Information Policy Set n Privacy policy v Set of public statements declaring how site will treat customers’ personal information that is gathered by site n Accessibility rules v Set of design objectives that ensure disabled users can effectively access site Copyright © 2016 Pearson Education, Ltd. Slide 1 -46

Insight on Society: Class Discussion Designing for Accessibility Why might some merchants be reluctant to make their Web sites accessible to disabled Americans? n How can Web sites be made more accessible? n Should all Web sites be required by law to provide “equivalent alternatives” for visual and sound content? n What additional accessibility problems do mobile devices pose? n Copyright © 2016 Pearson Education, Ltd. Slide 1 -47

Developing a Mobile Web Site and Building Mobile Applications n Three types of m-commerce software v Mobile Web site n Responsive Web design v Mobile Web app v Native app v Hybrid app n Runs inside native container n App distribution n Based on HTML 5, CSS, Javascript Copyright © 2016 Pearson Education, Ltd. Slide 1 -48

Planning and Building a Mobile Presence n Identify business objectives, system functionality, and information requirements n Choice: v Mobile Web site or mobile Web app n Less expensive v Native app n Can use device hardware, available offline Copyright © 2016 Pearson Education, Ltd. Slide 1 -49

Table 3. 13, Page 220 Copyright © 2016 Pearson Education, Ltd. Slide 4 -50

Mobile Presence Design Considerations n Platform constraints v Graphics, file sizes n Mobile first design v Desktop Web site design after mobile design n Responsive Web design (RWD) v CSS site adjusts layout of site according to device screen resolutions n Adaptive Web design (AWD) v Server delivers different templates or versions of site optimized for device Copyright © 2016 Pearson Education, Ltd. Slide 1 -51

Cross-Platform Mobile App Development Tools n Objective C, Java n Low cost, open-source alternatives v Appery. io v Codiqua v Phone. Gap v Mo. Synch v Appcelerator Copyright © 2016 Pearson Education, Ltd. Slide 1 -52

Performance and Cost Considerations n Mobile first design: Most efficient n Mobile Web site: v Resizing existing Web site for mobile access is least expensive n Mobile Web app: v Can utilize browser API n Native app: v Most expensive; requires more programming Copyright © 2016 Pearson Education, Ltd. Slide 1 -53

Insight on Technology: Class Discussion Building a Mobile Presence n What are the key differences between user experience on a Web site and on a mobile device? n Why would a mobile Web site or app from the same merchant need different content or functionality? n In which cases would a merchant want to develop a mobile app over a mobile Web site? Copyright © 2016 Pearson Education, Ltd. Slide 1 -54