Related to Building E-Commerce Applications and Infrastructure but modified from Chapter 12 for Lo205 Judith Molka-Da

1. Related to Building E-Commerce Applications and Infrastructurebut modified from Chapter 12 for Lo205Judith Molka-Danielsen 26.02.02

2. Learning Objectives • E-Business Application Development: approach and applications • Requirement Definition: know your business needs; and where are the data (dbms). • Develop • Application service providers (ASP) (do it all) • Turnkey, (buy package, install self) • Write it – (labor costs, revisions, option OOP) • Buy it on a e-market, (evaluating packages, RFP) • Install, operate, maintain (self, outsource) • Service Level Agreements (SLA)

3. Figure 12-3EC Application Development Process

4. A Development approach • 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

5. As with any project management process • Form a Team to manage the process and vendors • Must Collaborate with business partners • Must Periodically evaluate system performance

6. Example of an EC Applications: A storefront • A storefront—built on seller’s server • B2C storefronts – required functionality • 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)

7. Another EC Applications – a storefront B2B • A storefront—built on seller’s 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 • auctions • E-procurement and reverse auctions • Personalized aggregation of catalogs

8. Personalized pages Security and privacy protection Integration capabilities Searching and indexing Modularity Performance caching Openness Polls and evaluations E-mail service Servers Major EC Applications - Enterprise portals – expected services

9. 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 Major EC Applications - Enterprise Exchanges- expected services

10. 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

11. Advantages Availability of many off-the-shelf packages Saves time Requires few dedicated personnel Not the first and only user Disadvantages Software doesn’t exactly fit needs Loss of control over improvements and versions Difficult to integrate Vendors may drop product or go out of business Development Strategies –buy applications (turnkey approach)

12. Development Strategies forEC Applications (cont.) • Lease (ASP provide the whole service) • 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 (make it) • Development approaches • Build from scratch • Build from components (XML, Visual Basic, Perl) • Prototyping methodology

13. Other Development Strategies forEC Applications (cont.) • Also buying services • Join an e-marketplace or exchange • Join a third-party or reverse auction • Joint ventures • Join a consortia • Hybrid approach

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

15. 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 • Benefits to the leasing companies • Saves time, expenses (labor) in development stage • Reduces software maintenance, upgrading, and training time • Reduces time-too-market • Enhances ability to adapt to changing market conditions

16. 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 Criteria for Selecting a Development Approach • Criteria

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

18. 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

19. 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

20. 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

21. Figure 12-6Levels of Enterprise Integration

22. 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 product descriptions, etc. • Integration with 3rd party software—taxes, shipping, etc. • Electronic payment systems

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

24. EC Suites • Suite—combined set of tools giving builder and users: • Greater flexibility • Specialization • Customization • Integration • Support for complete functionality

25. Figure 12-8Open Market EC Server Architecture Source: Interworld,com/solutions

26. 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

27. 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

28. Figure 12-10Web to Database Connection

29. 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!

30. Selecting a software package • 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

31. General category of packages • 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

32. Evaluation criteria • Detail what one must know about the package, and how important each criteria • 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

33. More selection criteria • 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

34. Developing the RFP • 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 company’s current needs or enhanced in the future

35. Evaluate candidates for RFP • RFP is sent to short list of qualified vendors • Responses generate massive volumes of information for evaluation to determine • Gaps between the company’s needs • Capabilities of the proposed application packages • To help determine which package, may use a table (see Table 12-2)

36. Vendor and Software Selection (cont.)

37. Choose the package fro the short list • Determine how the packages might be modified to remove any discrepancies with the company’s desired EC application • Most important factor is additional development effort required to tailor the system: • To company’s needs • To integrate with company’s environment (legacy systems)

38. Choose the package (cont.) • People have to adapt to the software • Significant changes in how they do their jobs • Need user Commitment to system to succeed • Project team should verify that: • Users of the system support the decision to buy the selected package • IS people who will support the system agree that the system will work in their environment and that they can support is satisfactorily

39. Contract negotiations • 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 • Company’s power is in being able to choose another vendor’s product • Concessions from vendor must be negotiated before final decision on which package to buy

40. Service Level Agreements • 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

41. 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

42. 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-business—methodology, products, and services designed to optimize performance and availability of business applications

43. 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

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

45. 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

46. Bob the builder: In-house or outsource?