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Chapter 12 Building E-Commerce Applications and Infrastructure

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Title: Chapter 12 Building E-Commerce Applications and Infrastructure


1
Chapter 12Building E-Commerce Applications and
Infrastructure
2
Learning Objectives
  • Describe the landscape and framework of EC
    application development
  • Describe the major EC applications and list their
    major functionalities
  • Describe the EC architecture development process
  • List the EC application development options and
    the approaches for option selection

3
Learning Objectives (cont.)
  • Describe the major activities in system analysis
    and design
  • Describe the role of application service
    providers (ASPs)
  • Describe catalogs, Web servers, carts, chatting,
    and telephony for EC

4
Learning Objectives (cont.)
  • Understand the issue of connecting EC
    applications to databases, other applications and
    networks, and to business partners
  • Describe site usability and management
  • Describe the process of storefront development
  • Build a simple storefront using templates

5
Building EC ApplicationsSome Examples
  • Wine.com
  • Simple, straightforward navigation from one page
    to the next
  • Electronic catalog of products searchable with a
    variety of parameters
  • Virtual shopping cart
  • Live get an answer to your question
  • Secure payment
  • Credit card
  • CyberCash

6
Building EC ApplicationsSome Examples (cont.)
  • Wine.com (cont.)
  • Focus on content and customer convenience
  • Personal profiles so customers can view records
    of their purchases
  • Search engine for finding products and prices on
    the site
  • Monthly programcustomers receive selection of
    wines
  • Shipment management feature

7
Building EC ApplicationsSome Examples (cont.)
  • Wine.com (cont.)
  • Focus on content and customer convenience
  • Virtual sampler sets
  • Tasting charts provide graphic representation of
    flavor profile for each wine
  • Other services including expert advice
  • Member of ShopperConnectionnetwork of retail
    sellers with links among member sites
    (ShopperConnection no longer in business)

8
Building EC ApplicationsSome Examples (cont.)
  • United Parcel Service (UPS) services the masses
  • Online package tracking saved the company 2 per
    customer service phone call ( millions annually)
  • Site provides customers information on
  • Cost
  • Transit time
  • Location of nearest drop off facility
  • Scheduling package pickup

9
Figure 12-2GMs TradeXchange
10
Building EC ApplicationsSome Examples (cont.)
  • General Motors TradeXchange
  • Participant in Commerce Ones Global Trading Web
  • TradeXchange uses Commerce Ones software and
    integrated components from other vendors
  • I2 Technologys RHYTHM for better collaboration
  • VEOs XML component for better communications

11
Building EC ApplicationsSome Examples (cont.)
  • General Motors TradeXchange (cont.)
  • CommerceBid for B2B auction and reverse auctions
  • Partnership with Empowerment Foundation and
    Direct Sourcing Solutions to help minority-owned
    suppliers compete
  • PriceWaterhouseCoopers to provide EC services for
    the exchange

12
Figure 12-3EC Application Development Process
13
Landscape and Framework of EC Application
Development
  • Development process
  • Step 1 EC architecture creation--systems
    analysis approach
  • Step 2 Select a development option
  • Step 3 Installing, connecting, and more
  • Step 4 Deployment
  • Step 5 Operation and maintenance

14
Landscape and Framework of EC Application
Development (cont.)
  • Project management
  • Development process is complex and must be
    properly managed
  • Team formed to manage the process and vendors
  • Collaborations with business partners is critical
  • Appropriate management includes periodic
    evaluations of system performance

15
Major EC Applicationsand Their Functionalities
  • A storefrontbuilt on sellers server
  • B2C storefronts
  • Discover, search and compare products
  • Select product ad negotiate price
  • Aid in evaluation of products and services
  • Payment of purchase and order processing
  • Order confirmation
  • Guest book for comments and contacts
  • Credit verification system
  • Arrange delivery (tracking)

16
Major EC Applicationsand Their Functionalities
(cont.)
  • A storefrontbuilt on sellers server
  • Suppliers sell-side in B2B
  • Personalized catalogs
  • B2B payment gate
  • Electronic contract negotiation
  • Product configuration
  • Ability to use m-commerce
  • Affiliate program capabilities
  • Integration with corporate back-end systems

17
Major EC Applicationsand Their Functionalities
(cont.)
  • A storefrontbuilt on sellers serversell-side
    auctions
  • E-procurement and reverse auctions
  • Personalized aggregation of catalogs

18
Major EC Applicationsand Their Functionalities
(cont.)
  • Enterprise portals
  • Personalized pages
  • Security and privacy protection
  • Integration capabilities
  • Searching and indexing
  • Modularity
  • Performance caching
  • Openness
  • Polls and evaluations
  • E-mail service
  • Servers

19
Major EC Applicationsand Their Functionalities
(cont.)
  • Exchanges
  • Collaboration services
  • Community services
  • Web-automated workflow
  • Integrated business process solutions
  • Data mining
  • Transaction flow
  • Language translation
  • Central coordination of global logistics
  • Integration services
  • Negotiation mechanisms
  • Comprehensive links

20
Developing an EC Architecture
  • The 6 steps of development are
  • Step 1 Define business goals and vision
  • Step 2 Define the information architecture
  • Step 3 Define data architecture
  • Step 4 Define your application architecture
  • Step 5 Define the EC technical architecture
  • Step 6 Define the organization architecture

21
Development Strategies forEC Applications
  • Buy the applications (turnkey approach)
  • Disadvantages
  • Software doesnt exactly fit needs
  • Loss of control over improvements and versions
  • Difficult to integrate
  • Vendors may drop product or go out of business
  • Advantages
  • Availability of many off-the-shelf packages
  • Saves time
  • Requires few dedicated personnel
  • Not the first and only user

22
Development Strategies forEC Applications (cont.)
  • Lease
  • Types of leasing vendors
  • Lease the application from an outsourcer and
    install it on company premises
  • Use an application system provider (ASP)
  • In-house development insourcing
  • Development approaches
  • Build from scratch
  • Build from components
  • Prototyping methodology

23
Development Strategies forEC Applications (cont.)
  • Other development options
  • Join an e-marketplace or exchange
  • Join a third-party or reverse auction
  • Joint ventures
  • Join a consortia
  • Hybrid approach

24
Outsourcing and Applications Service Providers
  • Outsourcing
  • Internet malls
  • ISPs
  • Telecommunication companies
  • Software houses
  • Outsourcers and others

25
Applications Service Providers
  • Benefits to the ASP vendor
  • Companies generate revenues from sources other
    than connectivity and transport
  • Lucrative Web site hosting
  • Web design consulting
  • Hosted applications with access charges

26
Applications Service Providers (cont.)
  • Benefits to the leasing companies
  • Saves time and various expenses in the initial
    development stage (i.e., labor costs)
  • Reduces software maintenance, upgrading
    applications, and training time
  • Reduces time-too-market
  • Enhances ability to adapt to changing market
    conditions

27
Table 12-1Benefits and Risks of Using an ASP
28
Criteria for Selecting a Development Approach
  • Criteria
  • Functionalities of development packages and
    criteria of choice
  • Information requirements
  • User friendliness
  • Hardware and software resources
  • Installation
  • Maintenance services
  • Security
  • Vendor quality and track record
  • Estimating costs
  • Measuring benefits
  • Personnel
  • Forecasting and planning for technology evolution

29
Criteria for Selecting a Development Approach
(cont.)
  • Criteria (cont.)
  • Database format and portability
  • Application and data storage
  • Scope of service
  • Support services
  • Integration
  • Scaling
  • Sizing
  • Performance
  • throughput
  • Reliability
  • Security

30
System Analysis Activities and Tools
  • Requirements analysis
  • Methods for determining requirements
  • Joint Application Development (JAD)
  • Modeling approaches may be based on
  • Activity/process
  • Use case/object-oriented
  • Interprocess

31
System Analysis Activitiesand Tools (cont.)
  • Component-based development
  • Components evolved from objects of
    object-oriented methodology
  • They are much larger than objects and now serve
    as plug-and-play building blocks for developing
    large complex systems
  • Reasons for using components
  • Code reusability
  • Support for heterogeneous infrastructures and
    platforms
  • Rapid assembly of new business applications

32
System Analysis Activitiesand Tools (cont.)
  • Enterprise application integration
  • Aims to integrate applications (including
    internal applications) that have been developed
    by different organizations
  • If source code is unavailable (altering the
    application is not possible), EAI becomes the
    glue between the applications

33
Figure 12-6Levels of Enterprise Integration
34
Electronic Catalogs, Shopping Carts
  • Electronic catalogs, shopping carts, and merchant
    servers
  • Templates or wizards for creating storefronts and
    catalog pages
  • E-shopping carts
  • Web-based order forms
  • Database for maintaining product descriptions,
    etc.
  • Integration with 3rd party softwaretaxes,
    shipping, etc.
  • Electronic payment systems

35
Web Chatting, Webcasting,and Internet Telephony
  • Webcasting
  • Text streams
  • Ambient Webcasts
  • Streaming audio
  • Internet telephony
  • Web chatting
  • Communication centers
  • Customer service
  • Community discussion
  • Video chat

36
EC Suites
  • Suitecombined set of tools giving builder and
    users
  • Greater flexibility
  • Specialization
  • Customization
  • Integration
  • Support for complete functionality

37
EC Suites
  • IBM WebSphere Commerce Suite
  • Web server for catalog management
  • Application server for security
  • Reverse auctions
  • Exchanges
  • Contracts
  • EC suite server sell-side ordering and auctions
  • Database server
  • HTTP interface

38
IBM WebSphere Commerce Suite
  • Delivers an open, standards-based solution
    platform with integrated components for building
    e-marketplace
  • Facilitates operational efficiency and high
    return on investment
  • Uses Java and XML technologies to aggregate
    sellers catalogs
  • Provides optimal customization and flexibility
  • Incorporates e-marketplace functionality

39
Figure 12-10Web to Database Connection
40
Connecting to Databases, Legacy Systems, and
Business Partners
  • Connecting to business partners
  • Critical to success of EC, especially for B2B
    applications
  • Issues to be dealt with
  • Connectivity
  • Compatibility
  • Security
  • Scalability

Critical!
41
Vendor and Software Selection
  • Steps in selecting software package
  • 1 Identification of suitable packages
  • 2 Determination of detailed evaluation criteria
  • 3 Evaluation of candidate packages
  • 4 Choosing a package
  • 5 Negotiating the contract

42
Vendor and Software Selection (cont.)
  • Identification of suitable packages
  • Sources of information about packages
  • Hardware vendors
  • User groups
  • Technical and trade publications
  • Consultants experienced with an application area
    or industry
  • Friends and competitors
  • Preliminary evaluation criteria to eliminate all
    but a few of the most promising packages

43
Vendor and Software Selection (cont.)
  • Determination of evaluation criteria
  • Must determine in detail what one must know about
    the packages and how important each criteria is
  • Characteristics of the vendor
  • Functional requirements of the system
  • Technical requirements the software must satisfy
  • Amount and quality of documentation provided
  • Vendor support of package

44
Vendor and Software Selection (cont.)
  • Determination of evaluation criteria (cont.)
  • Requirements for purchase (RFP) is developed
    including
  • Information about the vendor
  • How long the vendor has been in the EC software
    business
  • Number of employees, financial and location of
    its sales and support offices
  • First release date of system being considered
  • Date of last revision
  • List of companies using the software to contact
    as references

45
Vendor and Software Selection (cont.)
  • Determination of evaluation criteria (cont.)
  • Project team develops essential functional
    requirements the systems must satisfy (RFP)
  • Mandatory requirements
  • Desired features
  • Stated as questions about the characterizes of
    the package
  • Ease with which software can be tailored to fit
    companys current needs or enhanced in the future

46
Vendor and Software Selection (cont.)
  • Evaluation of candidate packages
  • RFP is sent to short list of qualified vendors
  • Responses generate massive volumes of information
    for evaluation to determine
  • Gaps between the companys needs
  • Capabilities of the proposed application packages
  • To help determine which package, may use a table
    (see Table 12-2)

47
Vendor and Software Selection (cont.)
Criteria Weights System A System B System C
Support for Java standards
XML
SSL
Shoppingcart
Catalogs
Taxation
Personalization

48
Vendor and Software Selection (cont.)
  • Choosing the package once the short list has been
    prepared
  • Determine how the packages might be modified to
    remove any discrepancies with the companys
    desired EC application
  • Most important factor is additional development
    effort required to tailor the system
  • To companys needs
  • To integrate with companys environment

49
Vendor and Software Selection (cont.)
  • Choosing the package (cont.)
  • People are likely to have to adapt to the
    software
  • Significant changes in how they do their jobs
  • Commitment is necessary for the system to succeed
  • Project team should verify that
  • Users of the system support the decision to buy
    the selected package and agree to make it work
  • IS people who will support the system agree that
    the system will work in their environment and
    that they can support is satisfactorily

50
Vendor and Software Selection (cont.)
  • Contract negotiation (EC managers and/or IS
    department)
  • Specifies the price of the software
  • Determines the type and amount of support to be
    provided
  • Integral part of purchase process
  • Companys power is in being able to choose
    another vendors product
  • Concessions from vendor must be negotiated before
    final decision on which package to buy

51
Vendor and Software Selection (cont.)
  • Service level agreements (SLAs)
  • Formal agreements regarding the division of work
    between a company and its vendors
  • SLA can achieve facilitation and coordination by
  • Defining the partners responsibilities
  • Providing a framework for designing support
    services
  • Allowing the company to retain as much control as
    possible over their own system

52
Vendor and Software Selection (cont.)
  • Service level agreements (SLAs) (cont.)
  • Four steps for establishing SLA
  • Defining levels
  • Dividing computing responsibility at each level
  • Designing the details of the service levels
  • Implementing service levels

53
Site Management and Usage Analysis
  • Implementation of evaluation devices
  • Collecting and analyzing statistics
  • Hits per pageview
  • What can you get from pageviews
  • Pageviews by time bucket
  • Pageviews by customer logging status
  • Pageviews by referrer
  • Pageviews by visitors hardware platform, OS,
    browser
  • Pageviews by visitors host

54
Site Management andUsage Analysis (cont.)
  • Usability the measure of quality of a users
    experience when interacting with a product or
    system
  • Ease of learning
  • Efficiency of use
  • Memorability
  • Error frequency and severity
  • Subjective satisfaction

55
Site Management andUsage Analysis (cont.)
  • E-commerce management tools
  • Patrol for e-business management
  • Measures Web response time
  • Firewall administration
  • Application servers
  • Patrol for Microsoft
  • Open market
  • Netscape

56
Site Management andUsage Analysis (cont.)
  • E-commerce management tools (cont.)
  • MainView for e-business management
  • Manages mainframe-based EC applications
  • Monitors mainframe network connections
  • Systems administration
  • Service assurance center for e-businessmethodolog
    y, products, and services designed to optimize
    performance and availability of business
    applications

57
Process of Storefront Development
  • Issues to be addressed before choosing the proper
    solution include
  • Customers
  • Merchandising
  • Sales service
  • Promotion
  • Transaction processing
  • Marketing data and analysis
  • Branding

58
Process of Storefront Development (cont.)
  • Design guidelines
  • Establishing credibility
  • Offering personalized service
  • Pre- and post sales support
  • Realistic pricing
  • Availability and fast loading
  • Simplicity of site structure
  • Use of shopping cart
  • Good navigation
  • Globalization
  • Maximizing ways to order and pay

59
Managerial Issues
  • It is the business issues that count
  • In-house or outsource
  • Consider an ASP
  • Do a detailed EC architecture study
  • Security and ethics
  • Choosing a vendor/software
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