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    9781423903055 ppt ch09 9781423903055 ppt ch09 Presentation Transcript

    • Electronic Commerce Eighth Edition Chapter 9 Electronic Commerce Software
    • Learning Objectives
      • In this chapter, you will learn about:
      • Finding and evaluating Web-hosting services
      • Basic functions of electronic commerce software
      • Advanced functions of electronic commerce software
      Electronic Commerce, Eighth Edition
    • Learning Objectives (cont’d.)
      • Electronic commerce software for small and midsize businesses
      • Electronic commerce software for midsize to large businesses
      • Electronic commerce software for large businesses that have an existing information technology infrastructure
      Electronic Commerce, Eighth Edition
    • Web Hosting Alternatives
      • Self-hosting
        • Run servers in-house
        • Often used by large companies
      • Third-party Web-hosting service providers
        • Offer Web services, electronic commerce functions
        • Often used by midsize, smaller companies
      • Commerce service providers (CSPs)
        • Provide Internet access, Web-hosting services
        • Offer hosting services
          • Help companies conduct electronic commerce
      Electronic Commerce, Eighth Edition
    • Web Hosting Alternatives (cont’d.)
      • Commerce service providers (CSPs) (cont’d.)
        • Offer Web server management, rent application software
        • Also called:
          • Managed service providers (MSPs)
          • Application service providers (ASPs)
      • Service provider hosting arrangements
        • Shared hosting
          • Client's Web site on server hosting other Web sites simultaneously
          • Operated by service provider at its location
      Electronic Commerce, Eighth Edition
    • Web Hosting Alternatives (cont’d.)
      • Service provider hosting arrangements (cont’d.)
        • Dedicated hosting
          • Client Web server available
          • Server not shared with other clients
        • Service provider responsibilities (shared and dedicated hosting)
          • Owns server hardware, leased to client
          • Maintains Web server hardware, software
          • Provides Internet connection through its routers, other network hardware
      Electronic Commerce, Eighth Edition
    • Web Hosting Alternatives (cont’d.)
      • Service provider hosting arrangements (cont’d.)
        • Co-location service
          • Service provider rents physical space to client
          • Provides reliable power supply, Internet connection
          • Clients install own server hardware, software; maintain server
      • Finding service providers
        • Local telephone directory
        • Web directories
          • The List
          • Google Directory of Web Host Directories
      Electronic Commerce, Eighth Edition
    • Electronic Commerce, Eighth Edition
    • Web Hosting Alternatives (cont’d.)
      • Comparing Web hosts
        • HostIndex site
      • Web-hosting alternatives and services
        • TopHosts.com and HostSearch sites
      • Major Web directories
        • Google Directory of Web Host Directories
      • Web server-hosting decision: main factor
        • Scalable
          • Web server hardware, software combinations adaptable to meet changing requirements when needs of clients grow
      Electronic Commerce, Eighth Edition
    • Basic Functions of Electronic Commerce Software
      • Software and hardware products to build sites
        • Inexpensive hosted stores with software tools
        • Expensive sophisticated electronic commerce software suites
      • Electronic commerce software needs determined by:
        • Expected enterprise size, projected traffic, sales
        • Budget
          • Online store creation is less expensive than building retail store chain
          • External or in-house host considerations
      Electronic Commerce, Eighth Edition
    • Basic Functions of Electronic Commerce Software (cont’d.)
      • All electronic commerce solutions must provide:
        • Catalog display
        • Shopping cart capabilities
        • Transaction processing
      • Larger complex sites may include:
        • Software
          • Adding features, capabilities to basic commerce tools
      Electronic Commerce, Eighth Edition
    • Catalog Display
      • Catalog organizes goods and services being sold
        • Organizes offerings into departments
        • Web store advantage
          • Single product in multiple categories
      • Catalog: listing of goods and services
      • Static catalog: simple list written in HTML
        • On Web page or series of Web pages
      • Dynamic catalog: item information stored in database
        • Separate computer accessible to server running Web site itself (usually)
      Electronic Commerce, Eighth Edition
    • Catalog Display (cont’d.)
      • Large, well-known electronic commerce sites
        • Include many features; are professional looking
      • Small electronic commerce site
        • Simple, inexpensive electronic commerce software
        • Few features, clean look
        • Small Web stores (sell fewer than 100 items)
          • Use simple list of products or categories (static)
          • Item organization not particularly important
          • Can provide item photo
      • Good sites provide alternative ways to find products
        • Search engine
      Electronic Commerce, Eighth Edition
    • Electronic Commerce, Eighth Edition
    • Shopping Cart
      • Early days of electronic commerce
        • Used forms-based shopping
          • Shoppers selected items for purchase by filling out online forms
          • Awkward if ordering more than one or two items
        • Problems
          • Need to write down product codes, unit prices, other information before ordering
          • Customers forgot whether submit button clicked
        • Confusing and error prone
      Electronic Commerce, Eighth Edition
    • Electronic Commerce, Eighth Edition
    • Shopping Cart (cont’d.)
      • Electronic shopping carts
        • Today: electronic commerce standard
        • Keep track of items customer selected
        • Customer may view cart contents, add items, remove items
        • Figure 9-4
      • Shopping cart software
        • BIZNET Internet Services, SalesCart, WebGenie Software
        • Figure 9-5
      Electronic Commerce, Eighth Edition
    • Electronic Commerce, Eighth Edition
    • Electronic Commerce, Eighth Edition
    • Shopping Cart (cont’d.)
      • Web is stateless
        • Unable to remember anything from one session to another
        • To retrieve shopping cart information later
          • Information must be stored explicitly
          • Use cookies
        • If shopper’s browser does not allow cookie storage
          • Electronic commerce software automatically assigns temporary number
          • Example: ShopSite
      Electronic Commerce, Eighth Edition
    • Transaction Processing
      • Occurs when shopper proceeds to virtual checkout counter
        • Click checkout button
      • Electronic commerce software performs necessary calculations
      • Web browser software and seller’s Web server software switch into secure communication state
      • Most complex part of online sale
        • Web server software must communicate with other software running on seller’s other computers
      Electronic Commerce, Eighth Edition
    • Transaction Processing (cont’d.)
      • Most companies use accounting software package
        • Record sales and inventory movements
      • Must compute sales taxes and shipping costs
        • Software: update tax rates automatically
        • FedEx and UPS
          • Offer software integrating with electronic commerce software
      • Other calculation complications
        • Coupons, special promotions, time-sensitive offers
      Electronic Commerce, Eighth Edition
    • Advanced Functions of Electronic Commerce Software
      • Large company e-commerce operations
        • May have substantial business activity
          • Not related to electronic commerce
        • Exceptions: Amazon.com and Buy.com
      • Important
        • Integrate electronic commerce activities into other operations
      Electronic Commerce, Eighth Edition
    • Middleware
      • Middleware software
        • Takes sales and inventory shipments information from electronic commerce software
        • Transmits to accounting and inventory management software (format systems can read)
      • Sources
        • Companies can write own middleware
        • Purchase customized middleware
      • Interoperability
        • Making information systems work together
        • Important goal when installing middleware
      Electronic Commerce, Eighth Edition
    • Middleware (cont’d.)
      • Middleware costs
        • Primarily consulting fees to make software work
        • Range: $50,000 to several million dollars
          • Depending on complexity
      • Major middleware vendors
        • BEA Systems, Broadvision, Digital River, IBM Tivoli Systems
      Electronic Commerce, Eighth Edition
    • Enterprise Application Integration and Databases
      • Application program ( application software , application )
        • Program performing specific function
      • Application server (computer)
        • Takes request messages received by Web server
          • Runs application program performing action based on request message’s contents
          • Actions determined by business logic
      • Business logic
        • Rules used in the business
      Electronic Commerce, Eighth Edition
    • Enterprise Application Integration and Databases (cont’d.)
      • Application integration ( enterprise application integration )
        • Creation of links among scattered applications
        • Interconnects organization’s business logic
        • Accomplished by programs transferring information
          • From one application to another
        • Various program data formats differ
          • Must edit and reformat data
          • Increasingly using XML data feeds
      Electronic Commerce, Eighth Edition
    • Enterprise Application Integration and Databases (cont’d.)
      • Types of application servers
        • Page-based and component-based systems
      • Page-based application systems
        • Return pages generated by scripts containing rules
          • Present data on Web page with the business logic
        • Work well for small, midsize Web sites
        • Examples
          • Adobe ColdFusion
          • JavaServer Pages (JSP)
          • Microsoft Active Server Pages (ASP)
          • Hypertext Preprocessor (PHP)
      Electronic Commerce, Eighth Edition
    • Enterprise Application Integration and Databases (cont’d.)
      • Component-based application systems
        • Separate presentation logic from business logic
        • Preferred by larger businesses
        • Logic component created in its own module
          • Updating, changing system elements much easier
        • Common Web component-based systems
          • Enterprise JavaBeans (EJBs)
          • Microsoft: Component Object Model (COM)
          • Object Management Group: Common Object Request Broker Architecture (CORBA)
      Electronic Commerce, Eighth Edition
    • Enterprise Application Integration and Databases (cont’d.)
      • Databases contain business logic information that application servers use
      • Database manager (software)
        • Stores information in highly structured way
        • Database structure allows database manager software to retrieve database information
        • Smaller electronic commerce sites
          • Low-cost database (Microsoft Access)
        • Larger electronic commerce sites
          • Need power (IBM DB2, Microsoft SQL Server, Oracle)
      Electronic Commerce, Eighth Edition
    • Enterprise Application Integration and Databases (cont’d.)
      • Distributed information systems
        • Large information systems storing data in many different physical locations
      • Distributed database systems
        • Databases within distributed information systems
      • Complexity leads to high cost
      • MySQL database software
        • Maintained by community of programmers
        • Open source software: downloadable (free)
          • Software source code freely available (“open”)
        • Owned by Sun since 2008
      Electronic Commerce, Eighth Edition
    • Electronic Commerce, Eighth Edition
    • Web Services
      • Web services (software tools)
        • Application software in one organization communicates with other applications
          • Over a network using specific set of standard protocols (SOAP, UDDI, WSDL)
      • Web services (another definition)
        • Self-contained, modular unit of application logic
        • Provides business functionality to other applications
        • Through Internet connection
      Electronic Commerce, Eighth Edition
    • Web Services (cont’d.)
      • What Web services can do
        • Offer improved customer service, reduced costs
        • Provide XML data feeds
          • Flow from one application to another
        • Provide data feeds between two different companies
      • Examples
        • Information portal (J.P. Morgan Chase & Co.)
        • Automating communications (Nationwide Building Society)
        • Generating Web pages (CUNA Mutual Group)
      Electronic Commerce, Eighth Edition
    • Web Services (cont’d.)
      • How Web services work
        • Key element
          • Programmers write software accessing business application logic units without knowing details
        • Machine-to-machine communication
          • Allows programs written in different languages on different platforms to communicate, accomplish transaction processing, and perform other business tasks
          • Originally accomplished with HTML
          • Implemented with XML today
      Electronic Commerce, Eighth Edition
    • Web Services (cont’d.)
      • How Web services work (cont’d.)
        • First Web services
          • Information sources
          • Allowed programmers to incorporate information sources into software applications
        • More advanced example
          • Company uses Web services purchasing software to obtain vendor price information
          • Purchasing agent authorizes purchase using software to submit order, track until shipment received
          • Vendor's Web services software checks buyer’s credit, contracts with freight company
      Electronic Commerce, Eighth Edition
    • Web Services (cont’d.)
      • SOAP, WSDL, and UDDI specifications
        • Simple Object Access Protocol (SOAP)
          • Message-passing protocol defining how to send marked up data from one software application to another across a network
        • Full SOAP specification
          • W3C SOAP Page
      Electronic Commerce, Eighth Edition
    • Web Services (cont’d.)
      • SOAP, WSDL, and UDDI specifications (cont’d.)
        • Web Services Description Language (WSDL)
          • Describes logical units characteristics making up specific Web services
        • More information
          • W3CWeb Services Activity pages
        • Universal Description, Discovery, and Integration (UDDI) specification
          • Set of protocols identifying Web services locations’ associated WSDL descriptions
        • More information
          • UDDI Web site
      Electronic Commerce, Eighth Edition
    • Web Services (cont’d.)
      • SOAP, WSDL, and UDDI specifications (cont’d.)
        • Software vendors embracing Web services idea in new technology initiatives
          • Microsoft .NET
          • Sun Java 2 Platform, Enterprise Edition
        • Advantage
          • Less expensive to implement than older approaches
      Electronic Commerce, Eighth Edition
    • Web Services (cont’d.)
      • The future of Web services
        • Web services present a major change in business computing
        • Historically:
          • IT industry resisted standards; used programming languages unable to communicate with each other
          • Large businesses hired armies of programmers
        • Today:
          • Web services gaining momentum
          • Web services are in 25 percent of current data integration projects
      Electronic Commerce, Eighth Edition
    • Web Services (cont’d.)
      • The future of Web services (cont’d.)
        • Potential pitfalls
          • Many variations of XML; data partners must agree
          • Software applications becoming dependent on Web services; must include reliable quality of service, service-level agreements
          • Still developing management standards; subscriber needs detailed agreement
        • Successful implementation: MSN Money
          • ComStock Web services acknowledgment on page
      Electronic Commerce, Eighth Edition
    • Integration with ERP Systems
      • B2B interactions occur within large firms
        • Complex systems require security tools
          • Encryption and authentication
      • Enterprise resource planning (ERP) software packages
        • Business systems integrating all business facets
          • Accounting, logistics, manufacturing, marketing, planning, project management, treasury functions
      • Two major ERP vendors
        • Oracle and SAP
        • Costs: between $2 million and $25 million
      Electronic Commerce, Eighth Edition
    • Electronic Commerce, Eighth Edition
    • Electronic Commerce Software for Small and Midsize Companies
      • Small and medium-sized businesses
        • Software to implement online business Web sites
      • Web site
        • Stands alone in its business activities
        • Does not coordinate completely with business’ other activities
      Electronic Commerce, Eighth Edition
    • Basic Commerce Service Providers
      • Service provider’s shared or dedicated hosting services
        • Staffing burden shifts from company to Web host
      • CSPs hosting services
        • Same advantages as ISPs
        • Large Web site cost spread over several “renters”
        • Low cost
          • Host provider purchased and configured the server
          • Host provider keeps server working through storms and power outages
      Electronic Commerce, Eighth Edition
    • Basic Commerce Service Providers (cont’d.)
      • CSPs offer free or low-cost e-commerce software
        • Electronic commerce sites kept on CSP’s server
        • Software built into CSP’s site
        • Cost: $20 per month
        • Designed for small online businesses
          • Selling few items (no more than 50)
          • Relatively low transaction volumes (fewer than 20 transactions per day)
      Electronic Commerce, Eighth Edition
    • Basic Commerce Service Providers (cont’d.)
      • CSP example: ValueWeb
        • Offers comprehensive e-commerce hosting services
          • Shared hosting, dedicated hosting, co-location services
      • CSP example: ProHosting.com and 1&1 Internet
        • Serving small, midsize company market
        • Figure 9-8
      • CSP example: Yahoo! Merchant Solutions
        • Figure 9-9
      Electronic Commerce, Eighth Edition
    • Electronic Commerce, Eighth Edition
    • Electronic Commerce, Eighth Edition
    • Mall-Style Commerce Service Providers
      • Mall-style CSPs services
        • Internet connection
        • Web site creation tools
        • Little or no banner advertising clutter
        • Costs
          • Low monthly fee
          • One-time setup fees
          • Percentage of (or fixed) amount for each transaction
        • Online store design tools, storefront templates, easy-to-use interface, Web page-generation capabilities, page maintenance
      Electronic Commerce, Eighth Edition
    • Mall-Style Commerce Service Providers (cont’d.)
      • Mall-style CSPs services (cont’d.)
        • Shopping cart software (or ability to use another vendor’s shopping cart software)
        • Payment processing services
          • Allows online store to accept credit cards
      • Main mall-style CSP: eBay stores
        • Cost: less than $20 per month
        • Small merchant has its own store
      Electronic Commerce, Eighth Edition
    • Mall-Style Commerce Service Providers (cont’d.)
      • Another example
        • Online merchant selling through Amazon.com
        • Sells used items on same page that Amazon.com lists new products
        • Merchants display offerings product by product
        • Amazon offers a Pro Merchant program
        • Figure 9-10
      Electronic Commerce, Eighth Edition
    • Electronic Commerce, Eighth Edition
    • Mall-Style Commerce Service Providers (cont’d.)
      • Basic and mall-style CSPs
        • Provide data-mining capabilities
        • Search through site data collected in log files
        • Data mining
          • Looks for hidden patterns in data
          • Businesses find customers with common interests
          • Discover previously unknown relationships among data
        • Reports indicate:
          • Problematic pages in store’s design
          • Number of pages average customer must load and display before locating desired merchandise
      Electronic Commerce, Eighth Edition
    • Estimated Operating Expenses for a Small Web Business
      • Small business owner Web store
        • Use either basic CSP or mall-style CSP
        • First-year expenses estimate
          • See Figure 9-11
          • Total omits payment processing charge
          • Actual costs: somewhat lower or considerably higher
      Electronic Commerce, Eighth Edition
    • Electronic Commerce, Eighth Edition
    • Estimated Operating Expenses for a Small Web Business (cont’d.)
      • Self-hosting a Web site
        • Comparable first year estimated costs
          • Setup and Web site maintenance ($3000 to $20,000, one time)
          • High-bandwidth Internet connection ($1200 to $12,000 per year)
          • Secure a small server room ($5000 a year)
          • Technicians to monitor and maintain equipment ($50,000 to $100,000 annually)
          • Total costs ($60,000 to $100,000)
          • Subsequent years: costs about the same
      Electronic Commerce, Eighth Edition
    • Estimated Operating Expenses for a Small Web Business (cont’d.)
      • Costs of larger sites: more difficult to estimate
        • Largest element
          • Integrating Web site with existing systems
        • Midsize businesses: start-up costs
          • $100,000 to $500,000
          • Recurring annual costs of about half that amount
        • Large businesses: start-up costs
          • Recurring yearly costs: another 50 percent of the launch (operate, maintain, improve site)
      Electronic Commerce, Eighth Edition
    • Electronic Commerce Software for Midsize to Large Businesses
      • Midrange electronic commerce software products
        • Provide merchant control
          • Merchandising choices, site layout, internal architecture, remote and local management options
        • Differences
          • Price, capability, database connectivity, software portability, software customization tools, computer expertise required
      Electronic Commerce, Eighth Edition
    • Web Site Development Tools
      • Adobe Dreamweaver
        • Includes integrated development environment
        • Creates elements of dynamic Web pages as easily as static Web pages
      • Microsoft Expression Web
        • Builds framework of functional midrange electronic commerce site
      • After Web site creation
        • Add purchased software elements
          • Shopping carts, content management software
      Electronic Commerce, Eighth Edition
    • Web Site Development Tools (cont’d.)
      • Intershop Enfinity provides:
        • Search and catalog capabilities
        • Electronic shopping carts
        • Online credit card transaction processing
        • Ability to connect to existing back-end business systems and databases
        • Setup wizards
        • Good catalog and data management tools
        • Built-in storefront templates
        • Management and editing of a storefront
          • Through Web browser (local or remote)
      Electronic Commerce, Eighth Edition
    • Web Site Development Tools (cont’d.)
      • Intershop Enfinity provides: (cont’d.)
        • Product inventory management module
          • Tracks inventory levels, shows available item quantity
          • Creates inventory transactions lists
          • Enters new products into inventory
        • Discount rules easy to enter
        • Database management system bundled
          • Alternative databases: IBM DB2 or Oracle databases
        • Includes automated e-mail facility
        • Support for secure transactions
        • Site and customer reports available
      Electronic Commerce, Eighth Edition
    • Web Site Development Tools (cont’d.)
      • IBM WebSphere Commerce Professional Edition
        • Set of software components
          • Suitable for midsize to large businesses
          • Selling goods and services on the Internet
        • Includes:
          • Catalog templates, setup wizards, advanced catalog tools to create attractive and efficient sites
        • Useful for B2B and B2C applications
        • Smooth connection to existing corporate systems
          • Inventory databases, procurement
      Electronic Commerce, Eighth Edition
    • Web Site Development Tools (cont’d.)
      • IBM WebSphere Commerce Professional Edition (cont’d.)
        • Runs on many different operating systems
        • Wizard used to create starter store
          • Can add more functionality
        • Large collection of functions, utility programs, commands
          • Create customized online store experience
          • JavaScript, Java, C++ expertise required
        • Connects to existing databases, other legacy systems
        • Administer several stores through one interface
      Electronic Commerce, Eighth Edition
    • Web Site Development Tools (cont’d.)
      • IBM WebSphere Commerce Professional Edition (cont’d.)
        • Standard electronic commerce features
          • Tools for a shopping cart
          • E-mail notifications upon sale completion
          • Secure transaction support
          • Promotions and discounting
          • Shipment tracking
          • Links to legacy accounting systems
          • Browser-based local and remote administration
        • Costs ($20,000 to $200,000)
      Electronic Commerce, Eighth Edition
    • Web Site Development Tools (cont’d.)
      • Microsoft Commerce Server 2007
        • Tools included for:
          • User profiling and management
          • Transaction processing
          • Product and service management
          • Target audience marketing
        • Wizards help users build site in several steps
        • Not an out-of-the box solution
          • Program code must be written for specific user needs
        • Microsoft Visual Studio .NET tools bundled
          • Allows site customization
      Electronic Commerce, Eighth Edition
    • Web Site Development Tools (cont’d.)
      • Microsoft Commerce Server 2007 (cont’d.)
        • Customer-oriented tools help:
          • Engage customer (marketing and advertising)
          • Complete order
          • Analyze sales information (after the sale)
        • Includes:
          • Predefined reports: analyzing site activities, product sales data
          • Storefront templates
          • Wizards for setting up, initializing store
          • Ability for database connections
          • Shopping cart
      Electronic Commerce, Eighth Edition
    • Web Site Development Tools (cont’d.)
      • Microsoft Commerce Server 2007 (cont’d.)
        • Includes: (cont’d.)
          • E-mail confirmation for completed sales transactions
          • Ability to support secure transactions
          • Ability to connect to existing accounting systems
          • Site administration through Web browser
        • Runs on Windows Server operating system and SQL Server database system
        • Costs: ($7000 to $20,000 per processor)
          • Usually between $20,000 and $150,000
      Electronic Commerce, Eighth Edition
    • Electronic Commerce Software for Large Businesses
      • Larger businesses need:
        • Same advanced capabilities as midsize firms
        • To handle higher transaction loads
        • Dedicated software applications
          • To handle specific elements of their online business
      • Distinction between midrange and large-scale electronic commerce software
        • Price
        • Extensive support for business-to-business commerce
      Electronic Commerce, Eighth Edition
    • Electronic Commerce Software for Large Businesses (cont’d.)
      • Enterprise-class software
        • Commerce software for large systems
      • Enterprise
        • Describes system serving multiple locations of one company
        • Encompasses all areas of the business
      • Software provides tools for B2B and B2C commerce
      • Interacts with wide variety of existing systems
        • Database, accounting, ERP
      • Costs: $100,000 to $10 million
      Electronic Commerce, Eighth Edition
    • Enterprise-Class Electronic Commerce Software
      • Requires several dedicated computers, Web server system, and firewalls
      • Enterprise-class products
        • IBM WebSphere Commerce Enterprise, Oracle E-Business Suite, products from Broadvision
      • Provides tools for linking to and supporting supply, purchasing activities
      Electronic Commerce, Eighth Edition
    • Enterprise-Class Electronic Commerce Software (cont’d.)
      • Provides standard electronic commerce activities
        • Secure transaction processing and fulfillment
        • Interaction with firm’s inventory system
        • Making proper stock adjustment
        • Issuing purchase orders for needed supplies
        • Generating other accounting entries
        • Placing orders explicitly
      Electronic Commerce, Eighth Edition
    • Enterprise-Class Electronic Commerce Software (cont’d.)
      • Enterprise-class electronic commerce architecture
        • Customers use Web browsers
          • Locate and browse company’s catalog
        • Electronic goods: download directly or complete order forms
        • Web server linked to back-end systems
          • Database management system, merchant server, application server
          • Purchasing history: way to provide customer recommendations
        • Merchant server houses e-business system, key back-end software
      Electronic Commerce, Eighth Edition
    • Electronic Commerce, Eighth Edition
    • Enterprise-Class Electronic Commerce Software (cont’d.)
      • Additional specialized software
        • Accomplishes particular objectives
        • Example: deliver entertainment (music or videos) directly to consumers’ mobile devices
          • Use OpenMarket software product
        • Customer relationship management software
        • Supply chain management software
        • Software automatically managing and rotating Web Site content
        • Knowledge management software
      Electronic Commerce, Eighth Edition
    • Customer Relationship Management Software
      • Goal
        • Understand each customer’s specific needs
        • Customize product or service to meet those needs
      • Idea
        • Customer whose needs met exactly
          • Willing to pay more for goods or services
      • Customer relationship management (CRM) software
        • Obtains data from operations software
        • Gathers data about customer activities
        • Uses data to conduct analytical activities
      Electronic Commerce, Eighth Edition
    • Customer Relationship Management Software (cont’d.)
      • Basic CRM
        • Uses customer information to sell more goods or services
      • Advanced CRM
        • Delivers extremely attractive, positive customer experiences
      • CRM business importance
        • Maintaining customer loyalty
        • Maintaining positive, consistent contacts at the purchasing company
      Electronic Commerce, Eighth Edition
    • Customer Relationship Management Software (cont’d.)
      • CRM software source
        • Companies create their own
          • May use outside consultants and own IT staffs
        • Most companies likely to buy CRM software package
        • Oracle Siebel CRM Applications
          • Leading CRM software provider
        • SAP CRM: another vendor
        • Costs: $25,000 to millions of dollars
      • New developments in CRM software market
        • Companies offering software for use on their Web site
        • Example: Salesforce.com
      Electronic Commerce, Eighth Edition
    • Electronic Commerce, Eighth Edition
    • Customer Relationship Management Software (cont’d.)
      • 1996 to 2000
        • Early days of CRM software implementation
        • Tool for changing overall customer strategy
        • Millions of dollars; bad experience
      • 2000 through 2003
        • CRM software sales dropped
      • Since 2003
        • CRM software sales resuming upward trend
        • CRM used to solve smaller, more specific problems
        • Popular target: call center operations
      Electronic Commerce, Eighth Edition
    • Supply Chain Management Software
      • Companies coordinate planning and operations:
        • With industry supply chains partners
      • Two general function types: planning and execution
      • SCM planning software
        • Develops coordinated demand forecasts
          • Information from each participant in supply chain
      • SCM execution software
        • Tasks: warehouse and transportation management
      Electronic Commerce, Eighth Edition
    • Supply Chain Management Software (cont’d.)
      • Two major firms offering SCM software
        • i2 Technologies and JDA Software
      • i2 Technologies product: RHYTHM
        • Components managing demand planning, supply planning, demand fulfillment
      • Most supply chain management software
        • Developed for manufacturing firms
          • Manage inventory purchases, manufacturing processes
      • JDA Software
        • Successful line of software products for managing retail order entry and sales side of inventory control
      Electronic Commerce, Eighth Edition
    • Supply Chain Management Software (cont’d.)
      • JDA Software (cont’d.)
        • 2006: JDA Software purchased Manugistics
        • Now JDA Software
          • Manages every operation in the supply chain
      • Cost of SCM software implementations
        • Varies tremendously
          • Depends on number of locations in the supply chain
        • Example: retailer with 500 stores
          • Pay between $3 million and $10 million
      Electronic Commerce, Eighth Edition
    • Content Management Software
      • Content management software
        • Controls large amounts of text, graphics, media files
      • Rise of wireless devices
        • Content management even more important
      • Businesses customize Web pages
      • Content management software
        • Test before committing
          • Ensure straightforward software procedures for performing regular maintenance
          • Software should facilitate typical content creation tasks
      Electronic Commerce, Eighth Edition
    • Content Management Software (cont’d.)
      • Companies providing content management software
        • As components in other enterprise software packages
          • IBM and Oracle
      • Companies providing stand-alone content management software
        • EMC and Open Text Corporation
      • Software costs
        • Between $100,000 and $500,000
      • Customization, configuration, implementation costs
        • Three or four times the cost of software
      Electronic Commerce, Eighth Edition
    • Knowledge Management Software
      • Systems that help manage knowledge itself
        • Rather than documentary representations of that knowledge
      • Four main things
        • Collect and organize information
        • Share information among users
        • Enhance ability of users to collaborate
        • Preserve knowledge gained through information use
          • For future users benefit
      Electronic Commerce, Eighth Edition
    • Knowledge Management Software (cont’d.)
      • Includes tools to read:
        • Electronic documents, scanned paper documents, e-mail messages, Web pages
      • Includes powerful search tools
        • Use proprietary semantic, statistical algorithms
      • Collects knowledge elements by extracting them from normal interactions users have with information
      • Major software vendors: IBM, Microsoft SharePoint, BMC Software, CustomerVision
      • Costs: $10,000 to $1 million or more
      Electronic Commerce, Eighth Edition
    • Summary
      • Small, midsize, large businesses
        • Electronic commerce
          • Software functions, selection decisions
          • Host provider considerations
      • Key elements of electronic commerce software
      • Web services implementation
        • Basic CSP and mall-style hosting services
        • Electronic commerce software packages
      • Special needs of midsize and larger business
      Electronic Commerce, Eighth Edition