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ELC 200ELC 200Day 8Day 8
Agenda Questions? Assignment 2 Due Assignment 3 Posted
Due October 8 assignment3.pdf Discuss assignment on Thursday
Quiz 2 Oct 15 Finish Discussion on ECommerce Infrastructure Begin Discussion on Building an E-commerce Building an E-commerce
Presence: Web Sites, Mobile Sites, and AppsPresence: Web Sites, Mobile Sites, and Apps
Chapter 3Chapter 3E-commerce Infrastructure: The E-commerce Infrastructure: The
Internet, Web, and Mobile PlatformInternet, Web, and Mobile Platform
Copyright © 2014 Pearson Education, Inc.
Learning Objectives Discuss the origins of the Internet. Identify the key technology concepts behind the Internet. Describe the role of Internet protocols and utility programs. Discuss the impact of the mobile platform and cloud computing. Explain the current structure of the Internet. Describe the potential capabilities of the Internet of the future. Understand how the Web works. Describe how Internet and Web features and services support e-
commerce. Understand the impact of m-commerce applications.
Mobile Apps Use of mobile apps continues to explode in
2012 70% of mobile phone owners research products and
services, 35% have made purchase
Increased use/purchasing from tablets Platforms:
iPhone/iPad, Android, Blackberry
App marketplaces: Google Play, Apple’s App Store, RIM’s App World, Windows
Phone Marketplace
Copyright © 2014 Pearson Education, Inc. Slide 3-5Slide 3-5
Insight on Technology: Class Discussion
Apps for Everything: The App Ecosystem What are apps and why are they so popular? Do you use any apps regularly? Which ones,
and what are their functions? What are the benefits of apps? The
disadvantages? Are there any benefits/disadvantages to the
proprietary nature of the Apple platform?
Copyright © 2014 Pearson Education, Inc. Slide 3-6
Chapter 4Chapter 4Building an E-commerce Presence: Web Sites, Mobile Building an E-commerce Presence: Web Sites, Mobile
Sites, and AppsSites, and Apps
Copyright © 2014 Pearson Education, Inc.
Learning Objectives Understand the questions you must ask and answer, and steps
you should take in developing an e-commerce presence. Explain the process that should be followed in building an e-
commerce Web site. Describe the major issues surrounding the decision to
outsource site development and/or hosting. Identify and understand the major considerations involved in
choosing software and hardware for an e-commerce site. Identify additional tools that can improve Web site performance.
Understand the important considerations involved in developing a mobile Web site and building mobile applications.
Class Discussion
Tommy Hilfiger Replatforms What reasons were behind Hilfiger’s choice
of ATG for its Web site solution? Why did Hilfiger decide it needed to
replatform in 2011? What are some of the site-building options
for operators of smaller Web sites?
Copyright © 2014 Pearson Education, Inc. Slide 4-9
Imagine Your E-commerce Presence What’s the idea?
VisionMission statementTarget audienceIntended market spaceStrategic analysisInternet marketing matrixDevelopment timeline and preliminary budget
Copyright © 2014 Pearson Education, Inc. Slide 4-10
Imagine Your E-commerce Presence (cont.)
Where’s the money?Business model(s):
Portal, e-tailer, content provider, transaction broker, market creator, service provider, community provider
Revenue model(s): Advertising, subscriptions, transaction fees, sales,
and affiliate revenue.
Copyright © 2014 Pearson Education, Inc. Slide 4-11
Imagine Your E-commerce Presence (cont.)
Who and where is the target audience?Describing your audience
Demographics Age, gender, income, location
Behavior patterns (lifestyle) Consumption patterns (purchasing habits) Digital usage patterns Content creation patterns (blogs, Facebook) Buyer personas
Copyright © 2014 Pearson Education, Inc. Slide 4-12
Who is the target audience? https://www.jackthreads.com/ http://www.buick.com/ http://www.lincoln.com/ http://www.theinsite.org/ http://www.nature.com/ http://www.harley-davidson.com/
Copyright © 2014 Pearson Education, Inc. Slide 4-13
Imagine Your E-commerce Presence (cont.)
Characterize the marketplaceDemographicsSize, growth, changesStructure
Competitors Suppliers Substitute products
Where is the content coming from?Static or dynamic?
Copyright © 2014 Pearson Education, Inc. Slide 4-14
Imagine Your E-commerce Presence (cont.)
Know yourself—SWOT analysis Develop an e-commerce presence map Develop a timeline: Milestones How much will this cost?
Simple Web sites: up to $5000Small Web start-up: $25,000 to $50,000Large corporate site: $100,000+ to millions
Copyright © 2014 Pearson Education, Inc. Slide 4-15
SWOT Analysis
Figure 4.1, page 126
Copyright © 2014 Pearson Education, Inc. Slide 4-16
E-commerce Presence Map
Figure 4.2, page 127
Copyright © 2014 Pearson Education, Inc. Slide 4-17
Copyright © 2014 Pearson Education, Inc. Slide 4-18
Copyright © 2014 Pearson Education, Inc. Slide 4-19
Building an E-commerce Presence: A Systematic Approach
Most important management challenges:1. Developing a clear understanding of business
objectives What do you want to achieve?
2. Knowing how to choose the right technology to achieve those objectives What technologies will assist you in achieving your objectives?
Copyright © 2014 Pearson Education, Inc. Slide 4-20
Pieces of the Site-Building Puzzle Main areas where you will need to make
decisions:Human resources and organizational
capabilities Creating a team with the skill set needed to build and
manage a successful siteHardware/softwareTelecommunicationsSite design
Copyright © 2014 Pearson Education, Inc. Slide 4-21
The Systems Development Life Cycle (SDLC)
Methodology for understanding business objectives of a system and designing an appropriate solution
Five major steps: Systems analysis/planning Systems design Building the system Testing Implementation
Copyright © 2014 Pearson Education, Inc. Slide 4-22
Web Site Systems Development Life Cycle
Figure 4.5, Page 131
Copyright © 2014 Pearson Education, Inc. Slide 4-23
System Analysis/Planning Business objectives
List of capabilities you want your site to have
System functionalities List of information system capabilities needed
to achieve business objectives Emphasis on functions needed
Information requirements (data) Information elements that system must produce
in order to achieve business objectives
Copyright © 2014 Pearson Education, Inc. Slide 4-24
Table 4.2, page 132
Copyright © 2014 Pearson Education, Inc. Slide 4-25
Systems Design: Hardware and Software Platforms
System design specification Description of main components of a system and
their relationship to one another
Two components of system design:Logical design
Data flow diagrams, processing functions, databasesPhysical design
Specifies actual physical, software components, models, etc.
Copyright © 2014 Pearson Education, Inc. Slide 4-26
Logical Design for a Simple Web Site
Figure 4.6 (a), Page 134
Copyright © 2014 Pearson Education, Inc. Slide 4-27
Physical Design for a Simple Web Site
Figure 4.6 (b), Page 134
Copyright © 2014 Pearson Education, Inc. Slide 4-28
In-House vs. Outsourcing Outsourcing: Hiring vendors to provide
services involved in building site
Build own vs. outsourcing Build your own requires team with diverse skill set; choice of
software tools; both risks and possible benefits
Host own vs. outsourcing Hosting: Hosting company responsible for ensuring site is
accessible 24/7, for monthly fee Co-location: Firm purchases or leases Web server (with control
over its operation), but server is located at vendor’s facility
Copyright © 2014 Pearson Education, Inc. Slide 4-29
Copyright © 2014 Pearson Education, Inc. Slide 4-30
Choices in Building and Hosting
Copyright © 2012 Pearson Education, Inc. Slide 4-31
Copyright © 2012 Pearson Education, Inc. Slide 4-32
Finding web developers and web hosting solutions
Google Search is your friend (and occasionally your enemy)
A better way is find a web site you like See who did their web site (scroll to bottom or view source)
Get a referral
Copyright © 2014 Pearson Education, Inc. Slide 4-33
Insight on Business: Class Discussion
Curly Hair and Appillionaires
How does a small, niche Web site like NaturallyCurly.com become profitable?
Why has it never been cheaper to start an e-commerce company?
What is an Appillionaire? http://www.businessinsider.com/candy-crush-saga-daily-revenue-2013-7 http://www.forbes.com/sites/karstenstrauss/2013/10/15/mobile-
gaming-mega-deal-supercell/
Copyright © 2014 Pearson Education, Inc. Slide 4-34
Testing, Implementation, and Maintenance
Testing Unit testing System testing Acceptance testing
Implementation and maintenance Maintenance is ongoing Maintenance costs: Similar to development costs
If it costs $ 10,00 to build, it will cots $10,000/year to maintain
Benchmarking
Copyright © 2014 Pearson Education, Inc. Slide 4-35
Simple vs. Multi-tieredWeb Site Architecture
System architecture Arrangement of software, machinery, and tasks in an
information system needed to achieve a specific functionality
Two-tier Web server and database server
Multi-tier Web application servers Backend, legacy databases
Copyright © 2014 Pearson Education, Inc. Slide 4-36
Two-Tier E-commerce Architecture
Figure 4.8(a), Page 140
Copyright © 2014 Pearson Education, Inc. Slide 4-37
Multi-Tier E-commerce Architecture
Figure 4.8(b), Page 140
Copyright © 2014 Pearson Education, Inc. Slide 4-38
Web Server Software Apache
Leading Web server software (66% of market)Works with UNIX, Linux OSs
Microsoft’s Internet Information Server (IIS)Second major Web server software (16% of
market)Windows-based
Copyright © 2014 Pearson Education, Inc. Slide 4-39
Site Management Tools Basic tools
Included in all Web servers, e.g.: Verify that links on pages are still valid Identify orphan files
Third-party software for advanced managementMonitor customer purchases, marketing
campaign effectiveness, etc.WebTrends Analytics 10, Google Analytics
Copyright © 2014 Pearson Education, Inc. Slide 4-40
Dynamic Page Generation Tools Dynamic page generation:
Contents stored in database and fetched when needed
Common tools: CGI, ASP, JSP
Advantages Enables use of content management system (CMS)
Copyright © 2014 Pearson Education, Inc. Slide 4-41
Application Servers Web application servers
Provide specific business functionality required for a Web site
Type of middleware Connects traditional corporate systems to customers
Single-function applications being replaced by integrated software tools that combine all functionality needed for e-commerce site
Copyright © 2014 Pearson Education, Inc. Slide 4-42
E-commerce Merchant Server Software Provides basic functionality for sales
Online catalog List of products available on Web site
Shopping cart Allows shoppers to set aside, review, edit selections,
and then make purchaseCredit card processing
Typically works in conjunction with shopping cart Verifies card and puts through credit to company’s
account at checkout
Copyright © 2014 Pearson Education, Inc. Slide 4-43
Merchant Server Software Packages Integrated environment that includes most of
functionality needed Three general ranges of price and
functionality Basic: free, open sourceMidrangeHigh-end
Copyright © 2014 Pearson Education, Inc. Slide 4-44
Building Your Own E-commerce Site Options for small firms
Hosted e-commerce sites, e.g., Yahoo’s Merchant Solutions Site building tools E-commerce templates
Open-source merchant server software Enables you to build truly custom sites Requires programmer with expertise, time
Copyright © 2014 Pearson Education, Inc. Slide 4-45
The Hardware Platform Underlying computing equipment needed for
e-commerce functionality Right-sizing your hardware platform: the
demand side Number of simultaneous users
Right-sizing your hardware platform: the supply side Vertical scaling—improve individual components Horizontal scaling—share load with more computers
Copyright © 2014 Pearson Education, Inc. Slide 4-46
Table 4.5, Page 146
Copyright © 2014 Pearson Education, Inc. Slide 4-47
Table 4.6, Page 146
Copyright © 2014 Pearson Education, Inc. Slide 4-48
Other E-commerce Site Tools Web site design: Basic business considerations
Enabling customers to find and buy what they need
Tools for Web site optimization Search engine optimization
Metatags, titles, content Identify market niches, localize site Offer expertise Links Search engine ads Local e-commerce
Copyright © 2014 Pearson Education, Inc. Slide 4-49
Table 4.7, Page 147
Copyright © 2014 Pearson Education, Inc. Slide 4-50
Table 4.8, Page 147
Copyright © 2014 Pearson Education, Inc. Slide 4-51
Tools for Interactivity and Active Content
CGI (Common Gateway Interface) ASP (Active Server Pages) Java, Java Server Pages (JSP), and
JavaScript Web 2.0 design elements
Copyright © 2014 Pearson Education, Inc. Slide 4-52
Developing a Mobile Web Site and Building Mobile Applications
Three types of m-commerce softwareMobile Web site
Responsive web designMobile Web appNative app
Planning and building mobile presenceUse systems analysis/design to identify unique
and specific business objectives
Copyright © 2014 Pearson Education, Inc. Slide 4-53
Table 4.10, Page 153
Copyright © 2014 Pearson Education, Inc. Slide 4-54
Developing a Mobile Web Presence Design considerations
Platform constraints: Smartphone/tablet
Performance and costMobile Web site
Least expensiveMobile app
Can utilize browser APINative app
Most expensive; requires more programming
Copyright © 2014 Pearson Education, Inc. Slide 4-55
Insight on Technology: Class Discussion
Building a Mobile Presence What are the key differences between user
experience on a Web site and on a mobile device?
Why would a mobile Web site or app from the same merchant need different content or functionality?
In which cases would a merchant want to develop a mobile app over a mobile Web site?
Copyright © 2014 Pearson Education, Inc. Slide 4-56
Copyright © 2014 Pearson Education, Inc. Slide 4-57