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©Bowen Hui, Beyond the Cube Consulting Services Ltd.1
ACS 3907E-Commerce
Lecture 4-1
Instructor: Kerry Augustine
©Bowen Hui, Beyond the Cube Consulting Services Ltd.
© 2014 Pearson Education, Inc. Publishing as Prentice Hall 2
• Develop clear understanding of your business objectives– What information needs to be conveyed?
– Who are your clients?
– Who are your sponsors/stakeholders?
– Who needs to use the site?
– How will these users use the site?
• Knowing how to choose right technologies to achieve objectives– In-house development, open-source, commercial
– Outsourcing considerations
– E-Commerce technology architecture including hardware, software, database options
Building an E-commerce Site: A Systematic Approach
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Imagine Your E-commerce Presence
• What’s the idea?
– Vision
– Mission statement
– Target audience
– Intended market space
– Strategic analysis
– Internet marketing matrix
– Development timeline and preliminary budget
3
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Imagine Your E-commerce Presence (cont.)
• Where’s the money?
– Business model(s): • Portal, e-tailer, content provider, transaction broker, market
creator, service provider, community provider
– Revenue model(s): • Advertising, subscriptions, transaction fees, sales, and affiliate
revenue
4
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Imagine Your E-commerce Presence (cont.)
• Who and where is the target audience?
– Describing your audience• Demographics
– Age, gender, income, location
• Behavior patterns (lifestyle)
• Consumption patterns (purchasing habits)
• Digital usage patterns
• Content creation patterns (blogs, Facebook)
• Buyer personas
5
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Imagine Your E-commerce Presence (cont.)
• Characterize the marketplace
– Demographics
– Size, growth, changes
– Structure• Competitors
• Suppliers
• Substitute products
• Where is the content coming from?
– Static or dynamic?
6
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Imagine Your E-commerce Presence (cont.)
• Know your business—SWOT analysis
• Develop an e-commerce presence map
• Develop a timeline: Milestones
• How much will this cost?
– Simple Web sites: up to $5000
– Small Web start-up: $25,000 to $50,000
– Large corporate site: $100,000+ to millions
7
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SWOT Analysis
• Figure 4.1, page 189
8
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E-commerce Presence Map
• Figure 4.2, page 190
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Design Considerations
• Key players – who’s involved?– Owner
– Employees (Hierarchical? Management?)
– Suppliers
– Stakeholders
• High-level processes – how do the key players interact? What kind of information is exchanged between the key players?
• Functionality and applications – what kinds of features are made available by your site, and how are they organized into applications?
• Expected traffic – site/page traffic, seasonal deadlines?
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Budget Planning
Operational costs are generally budgeted between 20% - 25% of the entire project.
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Example Design Scenarios
• Sell text books using online catalog– Categories of books?
– Pricing options?
– Multiple sellers and buyer interaction?
• Service that connects tutors and students– How is a match initiated?
– Student-to-student or tutor-to-tutor interaction?
– Recommendation or rating system?
• Distributor of dog products to pet stores– Types of products?
– Storage and delivery options?
– Local, regional, national, global distribution?
– Support for expansion to individual customers?
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Pieces of the Site-Building Puzzle
• Main areas where you will need to make decisions:
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The Systems Development Life Cycle (SDLC)
• Methodology for understanding business objectives of a system and designing an appropriate solution
• Five major steps:
– Systems analysis/planning
– Systems design
– Building the system
– Testing
– Implementation
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Web Site Systems Development Life Cycle (SDLC)
• Figure 4.5
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System Analysis/Planning
• Business objectives:
– List of capabilities you want your site to have
• System functionalities:
– List of information system capabilities needed to achieve business objectives
• Information requirements:
– Information elements that system must produce in order to achieve business objectives
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• Table 4.2
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Essential Applications and Functions
• Digital catalog – display goods using text, graphics
• Product database – product description, stock number, inventory level
• Customer on-site tracking – site log per customer visit, personalization, common customer paths and destinations
• Shopping cart/payment system – ordering system, secure credit card clearing, other payment options
• Customer database – customer name, address, phone, email
• Sales database – customer ID, product purchased, date, payment, shipment, fulfillment
• Ad server – tracks site behaviour, prospective customers
• Site tracking and reporting system – monitors unique visitors, page visits, products purchased
• Inventory management system – manages product inventory levels, supplier ID and contact, order quantity data by product
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Additional Application Examples
• Invoice system – internal accounting
• Security – user authentication, secure protocols, encryption
• Customer relationship management – customer feedback, reminder system, case management
• Supply chain and inventory management – supply and demand analysis, inventory forecasting
• Human resource management – time logs, workload analysis, scheduling, resource allocation
• Financial planning system – basic accounting, cash flow analysis, forecasting
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Systems Design: Logical and Physical
• System design specification: – Description of main components of a system and their
relationship to one another
• Two components of system design:– Logical design = description of flow of information and
major processes and relationships involved
• E.g., major system components and data flow
– Physical design = mapping of logical design to physical components
• E.g. actual servers to purchase
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© 2014 Pearson Education, Inc. Publishing as Prentice Hall 22
Logical Design for a Simple Web Site
• Figure 4.6 (a), Page 197
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Physical Design for a Simple Web Site
• Figure 4.6 (b), Page 197
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Build/Host Your Own vs. Outsourcing
• Outsourcing: Hiring vendors to provide services involved in building site
• Build own vs. outsourcing:– Build your own requires team with diverse skill set; choice of software
tools; both risks and possible benefits
• Host own vs. outsourcing– Hosting: Hosting company responsible for ensuring site is accessible
24/7, for monthly fee
– Co-location: Firm purchases or leases Web server (with control over its operation), but server is located at vendor’s facility
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Choices in Building and Hosting
Figure 4.7 Page 198
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Building Own vs. Outsourcing
• Build from scratch– Long development time (requires skilled staff)
– Risk of reinventing the wheel
– Highly customized solution possible
• Use pre-built packages + customize– Easy to start
– Could get costly to change/upgrade/maintain
– Limited in functionality and design
• Outsourcing + design requirements/input– Need to be clear on what you want
– Don’t have to think about design and technical details
– Costs may involve development costs, management costs, ongoing support costs, your input time
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© 2014 Pearson Education, Inc. Publishing as Prentice Hall 27
Testing, Implementation, and Maintenance
• Testing
– Unit testing
– System testing
– Acceptance testing
• Implementation and maintenance:
– Maintenance is ongoing
– Maintenance costs: Similar to development costs
– Benchmarking
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Personalization Tools
• Personalization
– Ability to treat people based on personal qualities and prior history with site
• Customization
– Ability to change the product to better fit the needs of the customer
• Cookies
– Primary method to achieve personalization
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The Information Policy Set
• Privacy policy
– Set of public statements declaring how site will treat customers’ personal information that is gathered by site
• Accessibility rules
– Set of design objectives that ensure disabled users can affectively access site
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Designing Your E-Commerce Solution
• Unified Modeling Language (UML)
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Tools for Building Your Design
• Content Management Systems (CMS)
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Content Management Systems (CMS)
• CMS = content management system
• Software to create content of websites on-the-fly by users
• No programming knowledge required by users
• No need to download editing software
• Allows multiple users to contribute to the site
• Independence from webmaster
• Fast prototyping – put up framework and plug in content later
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How CMS Works
• Additional functionality available via plugins
(requires more technical knowledge)
• Plugin = self-contained software component that can be added to create larger, integrated application
• Design follows the same template format as rest of site
• Separation of content from functionality and design
• Can function as intranet management system
(non-website)
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© 2014 Pearson Education, Inc. Publishing as Prentice Hall 34
Example Features
• Text, graphics, menus, links, etc.
• User accounts and access control levels
• Variety of professional design templates available
• Plugins:– Gallery/album
– Scheduling tool (calendar, appointment requests)
– Feedback/contact forms
– Shopping cart
– Credit card authentication
• Web statistics (http://www.google.com/analytics/index.html)
• Standards compliant (http://validator.w3.org/)
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CMS Example – Word Press
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Exercises
• Purpose:– Getting used to vague specifications
– Multiple implementations to satisfy the same business objective
• Constraints:– 2-3Teams
– 15 minutes of discussion and decision making
– Everyone focus on one of the previous scenarios
• Outcomes:– 5 minute presentation and rough e-commerce presence map
– Identification of major system functional requirements and application components
– Description of one user interaction scenario
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© 2014 Pearson Education, Inc. Publishing as Prentice Hall 39
Team Exercises
Round 1 Team Exercise (3)
Round 2 Team Exercise (3)