E-Commerce: The Second Wave, Fifth Edition

E-Commerce: The Second Wave Fifth Annual Edition Chapter 9:Electronic Commerce Software

E-Commerce: The Second Wave, Fifth Annual Edition

ObjectivesIn this chapter, you will learn about:Finding and evaluating Web hosting servicesBasic functions of electronic commerce softwareAdvanced functions of electronic commerce software


ObjectivesElectronic commerce software for small and midsize businessesElectronic commerce software for midsize to large businessesElectronic commerce software for large businesses that have an existing information technology infrastructure


Web Hosting AlternativesSelf-hostingRunning servers in-houseCommerce service providers (CSPs)Provide Internet access to companies and individualsOffer Web hosting services Web server management and the renting of application software


Web Hosting Alternatives (Continued)Shared hostingClients Web site is on a server that hosts other Web sites simultaneously Dedicated hostingService provider makes a Web server available to clientCo-locationService provider rents a physical space to the client to install its own server hardware


The List Web Host Directory


Basic Functions of Electronic CommerceAll electronic commerce solutions must provideA catalog displayShopping cart capabilitiesTransaction processing


Basic Functions of Electronic Commerce (Continued)Additional software componentsMiddleware Application integrationWeb servicesIntegration with enterprise resource planning (ERP) softwareSupply chain management (SCM) software


Catalog DisplayCatalogListing of goods and servicesStatic catalogSimple list written in HTML that appears on a Web page Dynamic catalogStores information about items in a database


Small Electronic Commerce Site


Shopping CartProblems with forms-based shoppingShoppers had to write down product information before going to order formCustomers sometimes forgot whether they had clicked the submit buttonConfusing and error prone


Using a Form to Enter an Order


Shopping Cart (Continued)Forms-based method of orderingHas given way to electronic shopping cartsShopping cartKeeps track of items customer has selected Allows customers to view contents of their carts, add new items, or remove items


Typical Shopping Basket Page


Transaction ProcessingOccurs when shopper proceeds to virtual checkout counter by clicking a checkout buttonCalculation complicationsComputing taxes and shipping costsProvisions for coupons, special promotions, and time-sensitive offers


Advanced Functions of Electronic Commerce SoftwareMiddlewareEstablishes connection between electronic commerce software and accounting systemInteroperabilityMaking a companys information systems work togetherEnterprise application integrationAttempt to tie all of companys existing systems to each other and to companys Web site


BEA Technology Solutions Page


Application Integration and DatabasesApplication programProgram that performs a specific functionApplication serverComputer that takes request messages received by the Web server and runs application programs Business logicRules used in the business


Application Integration and Databases (Continued)Page-based application systems Return pages generated by scripts Component-based application system Separates presentation logic from business logicDatabase managerSoftware that stores information in a highly structured way


Application Integration and Databases (Continued)Distributed information systemsLarge information systems that store the same data in many different physical locationsDistributed database systemsDatabases within distributed information systems


Web ServicesCombination of software tools that let application software in one organization communicate with other applications over networkCompanies are using Web services To offer improved customer service and reduce costs


Soap, UDDI, and WSDLSimple Object Access Protocol (SOAP) Message-passing protocol Web Services Description Language (WSDL)Describes characteristics of logic units that make up specific Web servicesUniversal Description, Discovery and Integration (UDDI) specificationSet of protocols that identify locations of Web services and their associated WSDL descriptions


Integration with ERP SystemsEnterprise resource planning (ERP) Software packages Business systems that integrate all facets of a businessMajor ERP vendorsBaan, Oracle, PeopleSoft, and SAPTypical installation of ERP software Costs between $2 million and $25 million


ERP System Integration with EDI


Electronic Commerce Software for Small and Midsize CompaniesCSPsHave same advantages as ISP hosting servicesLow cost is biggest single advantage Offer free or low-cost electronic commerce software for building electronic commerce sites


Interland Web Hosting Services Home Page


Mall-Style Commerce Service ProvidersProvide small businesses with Internet connectionWeb site creation toolsLittle or no banner advertising clutterProvide shopping cart software CSPs that offer mall-style commerce serviceseBay Stores and Yahoo! Store


Yahoo! StoreServes as the business Web host forKennedy Space Center Space ShopThe Sharper ImagePalmPilotGearMerchants Can create, change, and maintain their Yahoo! storefronts through a Web browser


BigstepReceived many industry awards for its CSP offeringProvides series of four different storefront packages Reports Provide data-mining capabilitiesData miningLooking for hidden patterns in data


Electronic Commerce Software for MidSize to Large BusinessesMidrange packagesAllow merchant to have explicit control over Merchandising choicesSite layoutInternal architectureRemote and local management options


Intershop EnfinityIntershop Enfinity MultiSite provides Search and catalog capabilitiesElectronic shopping cartsOnline credit card transaction processingThe ability to connect to existing back-end business systems and databases


IBM WebSphere Commerce Professional EditionSet of software components that provides software suitable for midsize to large businesses Includes Catalog templatesSetup wizardsAdvanced catalog tools


Microsoft Commerce Server 2002Allows businesses to sell products or services on the Web using the following toolsUser profiling and managementTransaction processingProduct and service managementTarget audience marketingProvides many predefined reports for analyzing site activities and product sales data


Electronic Commerce Software for Large BusinessesExamples of enterprise-class products that can be used to run a large online businessIBM WebSphere Commerce Business EditionOracle E-Business SuiteBroadvision One-To-One CommerceEnterprise-class softwareTypically provides good tools for linking to and supporting supply and purchasing activities


Typical Enterprise-Class Electronic Commerce Architecture


Customer Relationship Management SoftwareMust obtain data from operations software that conducts activities such asSales automationCustomer service center operationsMarketing campaignsMust also gather data about Customer activities on the companys Web site and any other points of contact


Supply Chain Management SoftwareHelps companies To coordinate planning and operations with their partners in the industry supply chains Performs two general types of functionsPlanningExecution


Content Management SoftwareShould be tested before making a commitmentEmployees Should find softwares procedures for performing regular maintenance to be straightforwardHelps companies control the large amounts of text, graphics, and media files


Documentum Content Management Web Site


Knowledge Management SoftwareHelps companies do four main thingsCollect and organize informationShare information among usersEnhance ability of users to collaboratePreserve knowledge gained through use of information


Summary Company Must first choose between paying a service provider to host the site and self-hostingExternal hosting options Shared hosting, dedicated hosting, and co-locationKey elements of electronic commerce softwareCatalogs, shopping carts, transaction processing capabilities


SummaryCommerce service provider (CSP)Used by small enterprises just starting an electronic commerce initiative If a company already has computing equipment and staff in placePurchasing a midrange electronic commerce software package provides more control over siteLarge enterprises with high transaction ratesNeed to invest in larger, more customizable systems


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E-Commerce: The Second Wave, Fifth Edition

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