Managing e-Business & High Technology (9)

Managing e-Business & High Technology (9) Last time – Purchasing and inbound logistics • The rôle of Procurement • E-Procurement • Assignment workshop – some specific guidance This Week • Submitting your assignment • Designing an integrated supply-chain (Chaffey Chapter 11) • Focus group activity – experiences as an e-purchaser • Undertake analysis of e-business systems • Identify key elements of approaches to improve interface & security design of e-commerce systems • Re-using legacy applications

Assignment 1 • Make sure you cover the points that attract marks: • Executive Summary – write it last, place it first • Make the executive want to “buy” your proposal • For example: “If you do this it will cost X and pay for itself in Y months, yielding an extra profit of Z over six years” • Introduction and description of your project • Market analysis – environment and opportunity • Revenue and savings • Costs • Analysis of Business Case – back up assertions you made • Hand in your printed report with standard cover sheet • Also use Turnitin to send me the file you printed • Don’t worry if there are hand-drawn bits missing from file

Using Turnitin • You should have received an e-mail from • To sign on, use your University e-mail address and the temporary password supplied, for example: • F.j.nerk@winchester.ac.uk • Wot8Funn1pw • The system will make you change your password to one you can remember, and let you update your details • You are now set up to submit your report • Turnitin will eventually generate a “Similarity report” highlighting any content that matches stuff in its database • It’s not a perfect process, so don’t expect 0% similarity • E-Mail me if you have difficulty submitting http://www.submit.ac.uk/static_jisc/ac_uk_index.html

What Does B2C e-Commerce Require? Getting the Interface right Building the systems to ensure that promises are kept • Let’s review our experiences as e-purchasers

Activity: Summarize your experiences • Goal: to examine experiences as buyers to find out what: • Delights online purchasers • Puts them off using an online vendor • Goes wrong • Would make things better • Methodology • Form 2 or 3 groups and make a list of your thoughts • We’ll then consolidate your lists and evaluate each point • Outcome • Some design criteria we can apply to the business

Positive factors(things you’ve liked about an on-line vendor) 1 2 3 4 5 Negative factors(things that have put you off returning to a vendor) 1 2 3 4 5 Work-sheet 1

Errors to guard against(what went wrong) 1 2 3 4 5 6 Potential improvements(things you’d like to see adopted by vendors) 1 2 3 4 5 Work-sheet 2

Positive factors(things you’ve liked about an on-line vendor) FAQs Global wide range of choice Good online support / live chat Competitive pricing Speed of purchase action User feedback/reviews Up to date stock position Good contact details Others from earlier years Easy navigation (matches user model, or has good search) Extras (reviews, recipes, newsletters, tech info…) Convenience (don’t go out) Negative factors(things that have put you off returning to a vendor) Query/ticket black hole Security worse than appears Hidden/misleading Ts&Cs No choice of shipper Poor after-sales supportBuck-passing Courier damage en route Others from earlier years Pop-ups and adverts No way to get human response Unreliable or slow site Navigation non-intuitive – can’t find what I want to buy or to know Frustration with repeated input Work-sheet 1 (Previous years)

Errors to guard against(what went wrong) Unconfirmed orders (did I pay or not?) Crash halfway through Arcane editing rules or No feedback on user error Empties form on error Choice not on drop-down Others from earlier years Complacency (no enhancement) Not holding customer data but asking for it again Lack of live link to LoB system Wrong Goods supplied (fraudulently or in error) Late delivery Potential improvementsto be adopted by vendors Courier Service warns of delivery Choice of courier Ability to have goods left Clarity & usability Good search facilities Clear shipping cost and VAT Navigation matches buyer’s view of the world Order/shipment tracking “Goodwill repair” Others from earlier years Better Images of products Confidence in Security Work-sheet 2 (Previous years)

Benyon-Davies (p.436) sees this as a complex process Consumers depend on IT system, which is funded by business, which is funded by consumers Consumers see front-end system.. ..and judge you on them, but revenue depends on robust back-end systems The same model holds for intranets (internal customers) Key thing is to understand the consumers Issues of Web-Based Development ICT system Production Consumption Investment Producer Consumer From Benyon-Davies (2004) E-Business, p.437

Workflow Management is key component • To understand workflow, we need to analyse stakeholder requirements and expectations • Then devise the simplest approach to meeting them… • …not forgetting that not every interaction will fit our model,and that we need to consider how to put errors right • Flow of work will therefore include exception flows • Serious problems arise if you get it wrong: • Kent CC investment in crashing Icelandic bank(paid consultant for warnings on credit rating changes, but warning email went only to officer who was on leave) • HBOS systemic ignoring of letters(scanned in OK, but nobody charged with answering them)

Real Business is Event-driven Activities can be classified as • Reactive or Event-driven • We react to an EVENT by starting a PROCESS • For example: phone rings, we talk to a customer and begin an enquiry or order process • Self-driven – a chain of related actions • Automatically proceed from one task to another • For example: classic production-line, or • continuous process of steel-rolling • Typically we do a mixture of the two: • Each event interrupt starts a process of several stages

A Business Process in an Estate Agent • Trigger is approach by potential vendor • Speed is essential, but process must be thorough • Once listing is complete, new processes can occur • Produce “particulars” • Match to registered buyers and inform them • Post listing on web and distribute particulars • Negotiate inspections… Chaffey Fig.11.1

Plan for the Week’s Learning • Undertake analysis of e-business systems • Start with a simple mail-driven scenario • Think about how it would be handled by software • Identify key elements of approaches to improve interface design of e-commerce systems • Requires understanding of stake-holders • and their different tolerance and requirements • Identify security requirements and map them on software facilities Some symbols(Chaffey: Fig.11.2)

Main Operations for Workflow Software Taken from Chaffey: Fig.11.3

Event-driven Process Chain (EPC) model from Chaffey: Fig.11.4

Understanding our Data • Many of the data-objects persist through the chain • Each activity exists to change data, or to • Provide it to one of the humans or other systems involved • Normally we use a database as the glue between actions, and perform Data Modelling • First stage is to identify ENTITIES – groupings of data that usually apply to something or somebody in the real world • Entities could include Customers, Employees, Orders… • Properties of the object are handled as ATTRIBUTES of the Entity • Then we look at the RELATIONSHIP between entities • Result is an Entity-Relationship model (BS2907)

Generic B2C Entity-Relationship diagram Taken from Chaffey: Fig.11.5

System Architecture for e-Business • Usual structure is Client-Server • Server holds shared data centrally • Client software interacts with user of system • Client can be generic, like a web-browser, orspecial-purpose, like a proprietary EDI client • Server could be one or more systems • Web servers are often single layer (even if duplicated) • Anything more secure will be layered • Internet-connected server handles incoming user request • Checks requests then passes them to an application… • Which itself may use a database server • Fact: Applications fail, standard software is more reliable

Three-tier Client Server for e-Business Taken from Chaffey: Fig.11.6

e-Business Architecture Firewall goes here modified from Chaffey: Fig.11.7

Usability • ISO Standards • 9241-11: Guidance on Usability (1998)Usability: the extent to which a product can be used by specified users to achieve specified goals with effectiveness, efficiency and satisfaction in a specified context of use. • 13407 covers Human-centred design processes for interactive systems • TR 16982: Usability methods supporting HC design • Source: Bevan, N International Standards for HCI and Usability in International Journal of Human Computer Studies, 55(4), 533-552 (online at http://www.usabilitynet.org/papers/HCI-Usability_standards.pdf • Also by Bevan: http://www.usabilitynet.org/trump/

General Considerations • Bevan proposes some approaches in the diagram below • Deep analysis is needed between stakeholder meeting and first prototype • Use-case analysis is a popular way to achieve this From http://www.usabilitynet.org/trump/

Use-Case Analysis Approach • Identify Actors • These are objects or people that interact with the system • But are not part of the system • Identify Use-cases • The different things actors may want to do with the system • Typically activities that are part of the actor-system dialogue, such as starting it, amending data… • Relate Actors to use-cases • Try to ensure that any actor can do anything relevant • Develop use-case scenarios • Start with pre-condition (e.g. user active on web-site) • Then define a task to be completed (e.g. Register) Schneider and Winters (1998) cited by Chaffey

Actors and Use-cases Chaffey: Fig.11.8

Use-case Scenario for Purchase Cycle Taken from Chaffey: Fig.11.9

Primary Scenario for Register use-case Taken from Chaffey: Fig.11.10

Development of User Community • Some of our users are internal, or may be employed to use the system • Customers are not – they’ll not visit unless there’s something in it for them • We may be able to improve experience by personalizing it • Though some customers may see that as intrusive • Others may have commercial reasons to use our system • User familiarity with the Internet is also a factor • In the early stages, you can scare users away(only problem when you target a new demographic) • Later they’ll have expectations and leave if they’re not met

Different types of audience Taken from Chaffey: Fig.11.14

Development of Internet user familiarity Taken from Chaffey (2003): Fig.11.13

I want to... I want to... I want to... I want to... Patricia Seybold, The Customer Revolution Successful Outcome: Customer Customer scenarios and service quality • A customer scenario is a set of tasks that a particular customer wants or needs to do in order to accomplish his or her desired outcome • Example: • New customer – open online account • Existing customer – transfer account online • Existing customer – find additional product From Chaffey, online resource

Site Navigation Schemes • It’s usually held to be a good thing if every page is available with the minimum number of clicks, but: • This implies larger number of choices at each level… • and so more reading before the click • In reality, we should seek to minimize time taken to find required information • Needs good understanding of users’ view of the site • Which will not be the same as the company’s • Optimization involves a shared taxonomy • Sections of site should have mutually understood purpose • Users select a coherent section from options as needed • Each section organized to match user expectations

Site Design Background • Assume that web users are fickle and impulsive • Leave your site if they can’t quickly figure it out • So make it easy to enter site and get some value out • Navigation must be clear, simple and consistent • Organization of site must match users’ expectations • Site is part of your organization’s branding • Style, aesthetics and personality must support the brand • Usually implies need for consistency • Content must be engaging and relevant • “Users spend most of their time on other sites. This means that users prefer your site to work the same way as all the other sites they already know”Jakob Nielsen

Site Design Principles • Follow standards and emulate best-of-breed • Support Marketing Objectives • Support Communication Objectives • Recognize customers’ familiarity (or lack of it) • with Internet, company, products, and this web-site • Minimize technology pre-requisites • Connection speed, screen resolution, browser, plug-ins • Aesthetics: Graphics, colour, layout, typography, clutter • Structure – not too deep or too shallow • Navigation • Where am I? Where next? How do I get there (or back)?

Deep and Shallow Site Organizations Shallow hierarchy Deep hierarchy Taken from Chaffey: Fig.11.15

Security Being covered in more depth in BS3909

Misuse of Information Systems Chaffey: Fig.11.19 Chaffey: Fig.11.17

Slammer Worm – the first half hour Chaffey: Fig.11.18

Do you Trust the Internet? • Any packet you send can be inspected enroute • Some form of encryption is vital for privacy • e-mail is in clear, so don’t include credit card information • e-Commerce depends on Public Key Cryptography • Messages are encrypted with a public key, but can only be decrypted by a corresponding private key • You can also do the opposite – encrypt with a private key so the messages can be decrypted with a public key – useful for authentication as nobody but you can encrypt • SSL (secure sockets layer) makes this easy to use • These approaches can be combined into a Secure Electronic Transaction

Security requirements for e-commerce • Authentication – are parties to the transaction who they claim to be? • Privacy and confidentiality – is transaction data protected? • Consumer may want to make an anonymous purchase • Are all non-essential traces of a transaction removed from the public network and all intermediary records eliminated? • Integrity – is whole message sent and not corrupted? • Non-repudiability – ensures sender cannot deny sending message • Availability and reliability – how can we eliminate threats to continuity & performance?

Public-key Cryptography Taken from Chaffey: Fig.11.24

1a 1b 5b Chaffey (2003): Fig.11.19 5a 3 4a 4b Secure Electronic Transaction (SET)

For B2C, we usuallyhave separate relationswith each vendor On B2B, there could becomplex networks oftrade One proposed way tostandardize is this OpenBuying Model from Visa,MasterCard, Microsoft… Another is the “OpenTrading Protocol”, but this has done littlesince 1998 Open Buying model for B2B Chaffey: Fig.11.20

Legacy Applications • Term used to describe stuff that works • Sometimes it’s very old • Over 30 years in some cases (CICS announced in 1969) • We may have lost the source code, but that’s not a major problem if nothing has gone wrong for the last ten years • Components have been working together well • BUT: typically designed for a pre-Windows world • Often efficient to put a modern interface on to it • Web interactions are passed to legacy code on server • Most application environments contain web interfaces to bridge to legacy applications • Legacy systems integrated in Waterstone’s Case Study

Summary • Understanding on-line customers isn’t easy • But we need to try to do it well • Use-case analysis is a valuable technique • It can help us maximize user satisfaction,and even get an optimal site navigation scheme • Security of e-Commerce is essential • Most implementation rely on public key cryptography • SSL is part of the protocol stack of all major Operating systems – make sure it’s set to 128-bit encryption • Secure Electronic Transactions supported by banks • Front ends to legacy applications help with reliability

Invitation from IBM Hursley • Smarter Cities Night event on the 9th May 2011 from 16:00 to 18:30 at the IBM Innovation Centre, Hursley (Near Winchester) • http://www.youtube.com/watch?v=_6b_ztbpRaw&feature=related • During the evening we will provide to you a deep dive into IBM's vision for Smarter Cities, the current and future city challenges, and insights into how technology can serve citizens' needs. • This event has been specifically tailored and organised for an academic audience. • The evening concludes with a Panel Discussion • Please register at http://ibm.co/smartercitiesnight

Managing e-Business & High Technology (9)