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Chapter 12 Building E-Commerce Applications and Infrastructure

Chapter 12 Building E-Commerce Applications and Infrastructure. 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

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Chapter 12 Building E-Commerce Applications and Infrastructure

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  1. Chapter 12Building E-Commerce Applications and Infrastructure Prentice Hall, 2002

  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 Prentice Hall, 2002

  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 Prentice Hall, 2002

  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 Prentice Hall, 2002

  5. Building EC Applications:Some 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 Prentice Hall, 2002

  6. Building EC Applications:Some 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 program—customers receive selection of wines • Shipment management feature Prentice Hall, 2002

  7. Building EC Applications:Some 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 ShopperConnection—network of retail sellers with links among member sites (ShopperConnection no longer in business) Prentice Hall, 2002

  8. Building EC Applications:Some 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 Prentice Hall, 2002

  9. Figure 12-2GM’s TradeXchange Prentice Hall, 2002

  10. Building EC Applications:Some Examples (cont.) • General Motor’s TradeXchange • Participant in Commerce One’s Global Trading Web • TradeXchange uses Commerce One’s software and integrated components from other vendors • I2 Technology’s RHYTHM for better collaboration • VEO’s XML component for better communications Prentice Hall, 2002

  11. Building EC Applications:Some Examples (cont.) • General Motor’s 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 Prentice Hall, 2002

  12. Figure 12-3EC Application Development Process Prentice Hall, 2002

  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 Prentice Hall, 2002

  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 Prentice Hall, 2002

  15. Major EC Applicationsand Their Functionalities • A storefront—built on seller’s 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) Prentice Hall, 2002

  16. Major EC Applicationsand Their Functionalities (cont.) • 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 systems Prentice Hall, 2002

  17. Major EC Applicationsand Their Functionalities (cont.) • A storefront—built on seller’s server—sell-side auctions • E-procurement and reverse auctions • Personalized aggregation of catalogs Prentice Hall, 2002

  18. Personalized pages Security and privacy protection Integration capabilities Searching and indexing Modularity Performance caching Openness Polls and evaluations E-mail service Servers Major EC Applicationsand Their Functionalities (cont.) • Enterprise portals Prentice Hall, 2002

  19. 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 Applicationsand Their Functionalities (cont.) • Exchanges Prentice Hall, 2002

  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 Prentice Hall, 2002

  21. 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 forEC Applications Buy the applications (turnkey approach) Prentice Hall, 2002

  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 Prentice Hall, 2002

  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 Prentice Hall, 2002

  24. Outsourcing and Applications Service Providers • Outsourcing • Internet malls • ISPs • Telecommunication companies • Software houses • Outsourcers and others Prentice Hall, 2002

  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 Prentice Hall, 2002

  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 Prentice Hall, 2002

  27. Table 12-1Benefits and Risks of Using an ASP Prentice Hall, 2002

  28. 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 Prentice Hall, 2002

  29. 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.) Prentice Hall, 2002

  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 Prentice Hall, 2002

  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 Prentice Hall, 2002

  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 Prentice Hall, 2002

  33. Figure 12-6Levels of Enterprise Integration Prentice Hall, 2002

  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 software—taxes, shipping, etc. • Electronic payment systems Prentice Hall, 2002

  35. 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 Prentice Hall, 2002

  36. EC Suites • Suite—combined set of tools giving builder and users: • Greater flexibility • Specialization • Customization • Integration • Support for complete functionality Prentice Hall, 2002

  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 Prentice Hall, 2002

  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 Prentice Hall, 2002

  39. Figure 12-10Web to Database Connection Prentice Hall, 2002

  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! Prentice Hall, 2002

  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 Prentice Hall, 2002

  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 Prentice Hall, 2002

  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 Prentice Hall, 2002

  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 Prentice Hall, 2002

  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 company’s current needs or enhanced in the future Prentice Hall, 2002

  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 company’s needs • Capabilities of the proposed application packages • To help determine which package, may use a table (see Table 12-2) Prentice Hall, 2002

  47. Vendor and Software Selection (cont.) Prentice Hall, 2002

  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 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 Prentice Hall, 2002

  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 Prentice Hall, 2002

  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 • 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 Prentice Hall, 2002

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