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Presentation Overview

PART I: Review e-business vs. bricks-and-mortar (BnM)

shopping attributes (Ch 8)

PART II: Summarize an interesting shopping mall example(CIO Magazine, 7/15/2000) and discuss obvious issues

PART III: Develop extrapolations Conceptual

Hardware

Software

Issues

prince dudhatra-9724949948


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PART I

Review e-business vs. bricks-and-mortar

(BnM) shopping attributes (Ch 8)



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What Are Channels?

How products get ordered/purchased:

BnM Stores/Malls

Online/Over the InternetMail Order

Catalogs/Magazines/Telephone/Fax

Door to door sales/Amway/Mary Kay/Avon

Wireless and TV/Cable

PLUS: How products get

distributed/delivered/returnedprince dudhatra-9724949948


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Some Other Terms of Art

Personal Digital Assistant (PDA) Point of Sale (POS)

Value Added Networks (VAN)

Business to Business (B2B)

Business to Customer (B2C)

Customer to Customer (C2C)

Extensible Markup Language (XML)

Electronic Data Interchange (EDI)

Bar Codesprince dudhatra-9724949948


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Advanced Terminology Automatic Data Capture (ADC)

Technologies (10 types)

Two are Radio Frequency (RF) users:

Radio Frequency Data Communications (RF/DC)

Radio Frequency Identification (RF/ID)

Others listed in a later slide



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Advanced Terminology (Cont.)XML related terms:

Document Type Definitions (DTD)

Extensible Stylesheet Language (XSL)

(More on these later)



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Its Only Good Business Good reputation over a long time

Good products and services

Good prices

Secure transactions

Customer interface important Customer satisfied or return product

Full refunds

Skip over the basics?prince dudhatra-9724949948


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Focus: Online vs. Bricks BnM Purchases

Online Orders

Some of each?

Both?

Can we merge?

Should we merge? How to merge?



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B'nM Stores Are Characters

Salespeople more effective

Touch and try out/try on products

Easy returns (if a BnM purchase)

Not always convenient (e.g., Australia)

Hard to comparison shop



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(cont.)

Takes time - worth it for one item?

Need transportation, parking, walking

Limited store hours

Limited selection/space limitations

Seasonal inventory/space limitations



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(cont.)

Labor intensive: stocking/sales/cleanup

Not geared for out of town shipping?

Expensive commercial property lease

Shoplifting/security staff



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Online Context

Online Capabilities: Sales/share

info/training/etc./etc. Sales:

Fewer Impulse Purchases

Comparison shopping easy

Cant try on clothes or hold products

Hard to return merchandise



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Online Context: Sales (cont.) Track purchases and market

accordingly

Can do reminders for new

purchases

Online security issues

Advertise related products/services

Email option



15/65

Online Context: Sales (cont.) 24/7 service

Recognize repeat customers

Store credit card data

Easy to add and delete/change mind before

purchase

Do not have to haul stuff around - virtual

shopping cart



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Online andMailOrder

Harder to returnmerchandise?

Shipping costs go up

Customer hassle to ship back

Still need to get the right product

Easier if can return at a

B'nM store?



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Easier if can return online

purchase to a B'nM store?

Depends on how well the online business

(manufacturer?) is integrated with the B'nM

store

Have to cancel online purchase?

Have to create new purchase?

Many businesses/manufacturers,

and many stores (geometrically complex)prince dudhatra-9724949948


18/65

Cancel Online Transaction? Keep (or ship back) returned products?

Defective or wrong size/color

Refund to customer from what account? Sales incentives involved?

Web site B2B referrals (e.g., Amazon.com)

Full refund minus shipping? One or two directions?

Apply to B'nM store purchase?



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Create New B'nM StoreTransaction

Same or related product?

Same price?

Sales tax?

In stock?

Entirely different product instead?

Net impact on manufacturer feedback data?



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Other Channel Merge Issues Returning B'nM store merchandise to the

online channel could be even harder

UnderIntegrated Mall, might want to be

able to return product to a differentstore

(Hechts instead of Sears) and get a different

product from a different manufacturer How much of this is worth tracking/doing?



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Mall Business Integration Making 100 stores work together

Competitive edge for mall?

Too complicated and expensive? Training?

Hardware needed? Automation challenge?

Software needed? XML? XHTML? Done before? Examples? Did it work?



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PART II

Summarize an interesting

shopping mall example

(CIO Magazine, 7/15/2000)and discuss obvious issues



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By Meredith Levinson, CIO magazine,

July 15, 2000; p115

Integrating Mall Shopping (at Simon PropertyGroup malls) with Online Shopping

Adult and Teenager Web sites

Real Life Exampleof a Mall

Integration Project



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Objective

Improving the customer's

experience in brick-and-mortarshopping at an otherwise traditional

shopping mall

New hardware and software applications

Created/financed by a commercial real estate company



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Problem or

Opportunity?

The project's originating issue was that

"customers didn't understand why theycouldn't return something to a store if they

bought it on the web site"

Simon saw a synergistically strategic

opportunity for a mall landlord (B2B)



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What Simon Did

Established a spin-off company named

Clixnmortar to integrate malls with online

Testing concepts at three Atlanta malls

Mall-customers use hand held, bar-code

scanning computers (PDA) to facilitate

shopping



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New Shopping Concept Customer scans bar code information into

the portable computer at any and all of the

mall stores

Decides at anytime but at least on exiting

the mall whether to buy online or at the mall

Accumulated bar code data input to thecustomer's "personal" Web page (created

just for this purpose) for later accessprince dudhatra-9724949948


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New Shopping Concept

(Cont.) B2B Strategy: Being integrated with a

given landlords system makes it difficult

for a mall store to go shopping for anothermall (Solidifies micro business relationship)

B2B Strategy: If successful, could capture

major retailer chain for new malls(Creates a macro business opportunity)

OPPORTUNITIES ARE LIMITED!!

Skip over details?prince dudhatra-9724949948


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Network

Hardware

Clixnmortars MerchantWired hardware

infrastructure package developed

Additional network hardware to connect to

the already installed business-specific

systems (??) LAN among WANs?



30/65

Mall LAN Connecting Mall Stores?

SearsHechts

Starbucks

Burger King

Borders

Books

Radio Shack

My Mall

LAN

How about the

Internet?prince dudhatra-9724949948


31/65

Better to Connect to Internet?

SearsHechts

Starbucks

Burger King

Borders

Books

Radio Shack

ANY Mall

LAN

How about the

Internet?

WWW

Customers



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Internet

Software Tenant Connect.com: Clixnmortar Internet

connection service

Temporary Web page for each customer

Two related but differentWeb sites wisely

separate the teens (www.fastfrog.com) from

the adults (www.yoursherpa.com)



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Stated Advantages Product and ordering information remains

available on personal Web site

Customers can mix and match at different

stores in the mall (The mall effectively

becomes one big, integrated store)

Tactical mall business advertising on PDAs



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PART III

Develop extrapolations

Conceptual

HardwareSoftware

Issues



35/65

Concept Extrapolations WWW Customers could share (network)

their shopping information with their

friends

Networked opportunities with other

companies and consumer organizations

Multi-Mall opportunities, too

Skip to Hardwareprince dudhatra-9724949948


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Concept Extrapolations (Cont.) Links to many/all businesses, all working

within the same shopping paradigm

Horizontal (diverse) business mergers anatural result

My favorite flower shop, my favorite drug

store, my favorite book store.



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Highly targeted advertising: Current needs

and preferred sources for each customer

Manufacturer connection: Could auction

surplus merchandise to customers already

identified as interested in specific products

Wish lists: Public part of privateWebpages.

Concept Extrapolations (Cont.)



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PART III


Conceptual

HardwareSoftware

Issues



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Hardware Extrapolations

(Rather Obvious?) Bar code readers

Cost seems high (each customer; LAN)

Unique and limited equipment

Maintenance/replacement/recharge

Not a self-serve operation

Helpers at each door

Need to combine with something else,

probably cell phones (obvious?)

Skip to Data Collection Systemsprince dudhatra-9724949948


40/65

CellP

hone Sellers Competitive market/value added option

Scan bar code data and upload indirectly to

cell phone company and then to personal

web site

Probably a complex undertaking relative to

data stream (possibly frequent, short, andsporadic to different cell phone systems)

Expensive optionprince dudhatra-9724949948


41/65

POS Hardware Options?(Not as obvious as cell phone option)

Each store could upload ADC personalWeb

site data without the new mall-specific LAN

Credit Card Uplink, chain store network, or

direct Internet connection

Customer ID already on credit card

Could also use bar code for ID and easy

POS navigation to personal web site



42/65

SOTA Options? There are otherautomatic data capture

(ADC) options to consider

State of the art (SOTA) is changing rapidly

ADC systems information available onWeb

sites. Student insights at:



43/65

Data Collection Systems Bar Codes

Biometrics

Card Technologies

Contact Memory

Electronic Data Interchange (EDI)



44/65

Data Collection Systems (Cont.)

Machine Vision

Optical Character Recognition (OCR)

Radio Frequency Data Communications(RF/DC)

Radio Frequency Indentification (RF/ID)

Speech Recognition

Terminology Link



45/65

Mall Hardware Gadgets Mall stores on mall network(plus own

business chain network?)

Mall network compatible hand held

bar code readers

Issued to customer at mall entrance

Returned on departure

Data/info uploaded to each customers

personalWeb page provided by mallprince dudhatra-9724949948


46/65

Replace dedicated PDA with bar code

reading cell phone

Replace customer-carried PDAs with

rack/shelf DAs

Identify customer using bar code card or card

magnetic strip Upload to personalWeb page

Display all at checkout and at home

Better Mall Hardware

Gadgets: Alternative Ideas



47/65

PART III


ConceptualHardware

Software

Issues



48/65

Better Software Ideas

Shop at home and list on personalWeb site

everything you want to find at the mall At the mall, using posted location bar codes,

get directions (on PDA or cell phone) to

closest store having one of your numbered

items



49/65

Better Software Ideas (Cont.)

Regardless of where you park, you get an

optimal shopping sequence that minimizes

the number of steps

Optionally, leave the heavy stuff to buy

near the end of the mall visit, making it

unnecessary to carry a heavy item aroundany longer than needed.

Skip Languagesprince dudhatra-9724949948


50/65

WWW/Internet Software

Web Page LanguagesOld/New

HTML - Hypertext Markup Language JAVA - Coffee

JAVA Script - Coffee that can write

Dynamic HTML - Cascading Style Sheets XML - Extensible Markup Language

XHTML - Extensible HTML (Jan 2000)prince dudhatra-9724949948


51/65

HTML vs. X-Man

HTML provides "best effort" presentation

Browsers ignore what they do not understand

XML and XHTML are less forgiving

Accuracy is expected



52/65

XML Basics

Transaction data are understood exactly,

including metadata/format and description

Likely an Internet revolution for business

Intel Corporation XML "networkdevices

Internet packet traffic on the Internet analyzed and

prioritized "on the fly

Can send different traffic to different routers orback-end financial servers (for example)

Can also "rollback" or reroute rejected XML traffic

(XML error control) "on-the-fly"

Skip XML Details



53/65

XML Basics (Cont.)

XML Credibility

Numbers ofPlayers-- and Their Size

Hundreds of companies (and all the big ones)

involved with and vigorously pursuing XML

opportunities

Product example:

WebMethods B2B e-commerce server Stores different document types

Converts them into XML for delivery over the

Internetprince dudhatra-9724949948


54/65

XML Data Exchange Infrastructure

Defined business content (or any other

industry-defined content)

Uses Document Type Definitions (DTD)

Only needed for use in business-to-business data

exchanges

Uses Extensible Stylesheet Language (XSL)

XML Basics (Cont.)



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Extensible Stylesheet Language (XSL)

formatting andmanipulations

Interact with XML data, intelligently evaluating

data for conditional (e.g., greater than and less

than) actions

XML Basics (Cont.)



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Use for Java tools in the XML environment

Assists in the integration of the XML and

HTML environments

Use to manage and translate XML products

between vertical industry applications

For example, can facilitate Oracle databasemanagement in the XML environment

XML Basics (Cont.)



57/65

XML and Legacy System Links

XML-based software being developed

tolookbackward

Many legacy databases are out there that are

XML-challenged

Now can be fixed by XML and JAVAprogrammers

XML Basics (Cont.)



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Customer communications equipment

Some is still relatively archaic (telephones and

facsimile machines) XML can be used to capture any input device

content electronically (even verbal input and fax

images), including from third world countries

Can transport that input either to the right person orthe right software fordirect use (on screen, on

paper, or voice)

XML Basics (Cont.)



59/65

PART III


ConceptualHardware

Software

Issues



60/65

Issues

There are many malls, so each customer

could end up with a Web page for each mall

Maintenance, battery charging, and

replacement ofPDAs is expensive

Customers can be intimidated by computers

Carrying around one more thing?



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Issues (Cont.)

People-intensive at each mall entrance/exit?

Not everyone is on the Internet

The need for an additional mall-specific

network seems invalid

Many stores already on an Internet friendly

network with their parent companies Redundant/parallel data uploads to two

networks at POS registers



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Issues and Concerns (Cont.)

Too many players involved, making DBMS

too complex to manage transactions/updates

Key players are the manufacturer and the

customer

Underlying scenario is Customer orders from

manufacturer, who sends product Everyone else is a facilitator (or a delayer)

Facilitators need to see and modify the single

customer/manufacturer databaseprince dudhatra-9724949948


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Context Diagram

Integrated Mall

System

Customer

Manufacturer

InternetChain Stores

Submits Order Data

Carries

Product

Customer

Product

Interest Page

Data

Provides Product

OnlineOrder

Data

Product

Sales Data?

Product

Sales

Data?

Provides store

info

NEED TO AGREE

ON THE OVERALL

PARADIGM prince dudhatra-9724949948


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Presentation Summary

PART I: Reviewed e-business vs. bricks-and-mortar

(BnM) shopping attributes (Ch 8)

PART II: Summarized an interesting shopping mall

example (CIO Magazine, 7/15/2000) and discussedobvious issues

PART III: Developed extrapolations

Conceptual

Hardware

Software

Issues



65/65

Motivational Thoughts

Still need a compelling customer benefit

May have to gradually develop this benefit

in the customers busy world

Only reputable companies need apply - no

room for crooks

XML is far more difficult than HTML, sothis part of High Tech will be even higher!


Documents

Channel Integration Prince Dudhatra 9724949948