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Chapter 12

Chapter 12. Business Plans for Implementing Electronic Commerce. Electronic Commerce. Objectives. Setting objectives for the benefits and costs of electronic commerce initiatives Deciding which electronic commerce project elements to outsource Selecting Web hosting services

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Chapter 12

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  1. Chapter 12 Business Plans for Implementing Electronic Commerce Electronic Commerce

  2. Objectives • Setting objectives for the benefits and costs of electronic commerce initiatives • Deciding which electronic commerce project elements to outsource • Selecting Web hosting services • Use project management techniques to plan and control e-commerce initiatives • Staffing e-commerce activities

  3. Planning the ElectronicCommerce Project • A successful business plan for an e-commerce initiative includes • Identifying the initiative’s objectives • Managing the implementation of those objectives • Overseeing the continuing operations of the initiative once it is launched

  4. Setting Objectives • Should include expected benefits and expected costs • Measuring both benefits and costs is becoming increasingly important • Companies often create a pilot Web site to test an idea

  5. Setting Objectives • Benefit objectives • Online surveys are used to gather data from visitors to the Web site • Statistical software is used to measure length of visit, return visits, etc. • Companies try to convert benefits of its Web site into dollar amounts, which often yield only rough approximations

  6. Setting Objectives • Cost Objectives • Web development often uses new hardware and software, which makes it difficult to project the exact costs • Hiring, training, and paying the personnel involved with the Web site accounts for over 75% of the site’s total budget • Annual cost to maintain a site is often between 50% and 100% of its initial cost

  7. Comparing Benefits to CostsFigure 12-1

  8. Internal Developmentvs. Outsourcing • First step in any e-commerce project is to create an internal team who will be responsible for the project. Members should be • Knowledgeable about the Internet and its technologies • Creative thinkers • Successful individuals, respected by their peers

  9. Internal Developmentvs. Outsourcing • Early outsourcing • Company’s information systems professionals work closely with the outsourcing team and learn the new technology before becoming responsible for the project • Late outsourcing • Company’s information systems professionals design, implement, and operate the system, then outsource once it is established

  10. Internal Developmentvs. Outsourcing • Partial outsourcing • Company identifies specific portions of the projects that can be completely designed, developed, implemented, and operated by another firm that specializes in that function • Selecting a hosting service • Factors to consider include reliability, bandwidth, security, and cost

  11. Managing Electronic CommerceImplementations • Project Management • A collection of formal techniques for planning and controlling the activities undertaken to achieve a specific goal • Software products, such as Microsoft Project and Primavera Project Planner give managers an array of built-in tools • Project Management Institute is devoted to the promotion of professional project management practices

  12. Project Management Institute Home Page Figure 12-2

  13. Staffing the Operation • Most important areas of staffing and e-commerce initiative include • Business management • Application specialists • Customer service • Systems administration • Network operations • Database administration

  14. Post-Implementation Audits • A formal review of a project after it is up and running • Gives managers a chance to examine the specifics for the project outlined in the planning stage and compare them to what actually happened • Raises questions about the project’s objectives and provides feedback on strategies

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