Electronic Commerce Eighth Edition Chapter 9 Electronic Commerce Software
Learning Objectives <ul><li>In this chapter, you will learn about: </li></ul><ul><li>Finding and evaluating Web-hosting se...
Learning Objectives (cont’d.) <ul><li>Electronic commerce software for small and midsize businesses </li></ul><ul><li>Elec...
Web Hosting Alternatives <ul><li>Self-hosting </li></ul><ul><ul><li>Run servers in-house </li></ul></ul><ul><ul><li>Often ...
Web Hosting Alternatives (cont’d.) <ul><li>Commerce service providers (CSPs)  (cont’d.) </li></ul><ul><ul><li>Offer Web se...
Web Hosting Alternatives (cont’d.) <ul><li>Service provider hosting arrangements (cont’d.) </li></ul><ul><ul><li>Dedicated...
Web Hosting Alternatives (cont’d.) <ul><li>Service provider hosting arrangements (cont’d.) </li></ul><ul><ul><li>Co-locati...
Electronic Commerce, Eighth Edition
Web Hosting Alternatives (cont’d.) <ul><li>Comparing Web hosts </li></ul><ul><ul><li>HostIndex site </li></ul></ul><ul><li...
Basic Functions of Electronic Commerce Software <ul><li>Software and hardware products to build sites </li></ul><ul><ul><l...
Basic Functions of Electronic Commerce Software (cont’d.) <ul><li>All electronic commerce solutions must provide: </li></u...
Catalog Display <ul><li>Catalog organizes goods and services being sold </li></ul><ul><ul><li>Organizes offerings into dep...
Catalog Display (cont’d.) <ul><li>Large, well-known electronic commerce sites </li></ul><ul><ul><li>Include many features;...
Electronic Commerce, Eighth Edition
Shopping Cart <ul><li>Early days of electronic commerce </li></ul><ul><ul><li>Used forms-based shopping </li></ul></ul><ul...
Electronic Commerce, Eighth Edition
Shopping Cart (cont’d.) <ul><li>Electronic shopping carts </li></ul><ul><ul><li>Today: electronic commerce standard </li><...
Electronic Commerce, Eighth Edition
Electronic Commerce, Eighth Edition
Shopping Cart (cont’d.) <ul><li>Web is stateless  </li></ul><ul><ul><li>Unable to remember anything from one session to an...
Transaction Processing <ul><li>Occurs when shopper proceeds to virtual checkout counter </li></ul><ul><ul><li>Click checko...
Transaction Processing (cont’d.) <ul><li>Most companies use accounting software package </li></ul><ul><ul><li>Record sales...
Advanced Functions of Electronic Commerce Software <ul><li>Large company e-commerce operations </li></ul><ul><ul><li>May h...
Middleware <ul><li>Middleware  software </li></ul><ul><ul><li>Takes sales and inventory shipments information from electro...
Middleware (cont’d.) <ul><li>Middleware costs </li></ul><ul><ul><li>Primarily consulting fees to make software work </li><...
Enterprise Application Integration and Databases <ul><li>Application program  ( application software ,  application ) </li...
Enterprise Application Integration and Databases (cont’d.) <ul><li>Application integration  ( enterprise application integ...
Enterprise Application Integration and Databases (cont’d.) <ul><li>Types of application servers </li></ul><ul><ul><li>Page...
Enterprise Application Integration and Databases (cont’d.) <ul><li>Component-based application systems </li></ul><ul><ul><...
Enterprise Application Integration and Databases (cont’d.) <ul><li>Databases contain business logic information that appli...
Enterprise Application Integration and Databases (cont’d.) <ul><li>Distributed information systems </li></ul><ul><ul><li>L...
Electronic Commerce, Eighth Edition
Web Services <ul><li>Web services  (software tools) </li></ul><ul><ul><li>Application software in one organization communi...
Web Services (cont’d.) <ul><li>What Web services can do </li></ul><ul><ul><li>Offer improved customer service, reduced cos...
Web Services (cont’d.) <ul><li>How Web services work </li></ul><ul><ul><li>Key element </li></ul></ul><ul><ul><ul><li>Prog...
Web Services (cont’d.) <ul><li>How Web services work (cont’d.) </li></ul><ul><ul><li>First Web services  </li></ul></ul><u...
Web Services (cont’d.) <ul><li>SOAP, WSDL, and UDDI specifications </li></ul><ul><ul><li>Simple Object Access Protocol (SO...
Web Services (cont’d.) <ul><li>SOAP, WSDL, and UDDI specifications (cont’d.) </li></ul><ul><ul><li>Web Services Descriptio...
Web Services (cont’d.) <ul><li>SOAP, WSDL, and UDDI specifications (cont’d.) </li></ul><ul><ul><li>Software vendors embrac...
Web Services (cont’d.) <ul><li>The future of Web services </li></ul><ul><ul><li>Web services present a major change in bus...
Web Services (cont’d.) <ul><li>The future of Web services (cont’d.) </li></ul><ul><ul><li>Potential pitfalls </li></ul></u...
Integration with ERP Systems <ul><li>B2B interactions occur within large firms </li></ul><ul><ul><li>Complex systems requi...
Electronic Commerce, Eighth Edition
Electronic Commerce Software for Small and Midsize Companies <ul><li>Small and medium-sized businesses </li></ul><ul><ul><...
Basic Commerce Service Providers <ul><li>Service provider’s shared or dedicated hosting services </li></ul><ul><ul><li>Sta...
Basic Commerce Service Providers (cont’d.) <ul><li>CSPs offer free or low-cost e-commerce software </li></ul><ul><ul><li>E...
Basic Commerce Service Providers (cont’d.) <ul><li>CSP example: ValueWeb </li></ul><ul><ul><li>Offers comprehensive e-comm...
Electronic Commerce, Eighth Edition
Electronic Commerce, Eighth Edition
Mall-Style Commerce Service Providers  <ul><li>Mall-style CSPs services </li></ul><ul><ul><li>Internet connection </li></u...
Mall-Style Commerce Service Providers (cont’d.) <ul><li>Mall-style CSPs services (cont’d.) </li></ul><ul><ul><li>Shopping ...
Mall-Style Commerce Service Providers (cont’d.) <ul><li>Another example </li></ul><ul><ul><li>Online merchant selling thro...
Electronic Commerce, Eighth Edition
Mall-Style Commerce Service Providers (cont’d.) <ul><li>Basic and mall-style CSPs  </li></ul><ul><ul><li>Provide data-mini...
Estimated Operating Expenses for a Small Web Business <ul><li>Small business owner Web store </li></ul><ul><ul><li>Use eit...
Electronic Commerce, Eighth Edition
Estimated Operating Expenses for a Small Web Business (cont’d.) <ul><li>Self-hosting a Web site </li></ul><ul><ul><li>Comp...
Estimated Operating Expenses for a Small Web Business (cont’d.) <ul><li>Costs of larger sites: more difficult to estimate ...
Electronic Commerce Software for Midsize to Large Businesses <ul><li>Midrange electronic commerce software products </li><...
Web Site Development Tools <ul><li>Adobe Dreamweaver </li></ul><ul><ul><li>Includes integrated development environment </l...
Web Site Development Tools (cont’d.) <ul><li>Intershop Enfinity provides: </li></ul><ul><ul><li>Search and catalog capabil...
Web Site Development Tools (cont’d.) <ul><li>Intershop Enfinity provides: (cont’d.) </li></ul><ul><ul><li>Product inventor...
Web Site Development Tools (cont’d.) <ul><li>IBM WebSphere Commerce Professional Edition </li></ul><ul><ul><li>Set of soft...
Web Site Development Tools (cont’d.) <ul><li>IBM WebSphere Commerce Professional Edition (cont’d.) </li></ul><ul><ul><li>R...
Web Site Development Tools (cont’d.) <ul><li>IBM WebSphere Commerce Professional Edition (cont’d.) </li></ul><ul><ul><li>S...
Web Site Development Tools (cont’d.) <ul><li>Microsoft Commerce Server 2007 </li></ul><ul><ul><li>Tools included for: </li...
Web Site Development Tools (cont’d.) <ul><li>Microsoft Commerce Server 2007 (cont’d.) </li></ul><ul><ul><li>Customer-orien...
Web Site Development Tools (cont’d.) <ul><li>Microsoft Commerce Server 2007 (cont’d.) </li></ul><ul><ul><li>Includes: (con...
Electronic Commerce Software for Large Businesses <ul><li>Larger businesses need: </li></ul><ul><ul><li>Same advanced capa...
Electronic Commerce Software for Large Businesses (cont’d.) <ul><li>Enterprise-class software </li></ul><ul><ul><li>Commer...
Enterprise-Class Electronic Commerce Software <ul><li>Requires several dedicated computers, Web server system, and firewal...
Enterprise-Class Electronic Commerce Software (cont’d.) <ul><li>Provides standard electronic commerce activities </li></ul...
Enterprise-Class Electronic Commerce Software (cont’d.) <ul><li>Enterprise-class electronic commerce architecture </li></u...
Electronic Commerce, Eighth Edition
Enterprise-Class Electronic Commerce Software (cont’d.) <ul><li>Additional specialized software </li></ul><ul><ul><li>Acco...
Customer Relationship Management Software <ul><li>Goal </li></ul><ul><ul><li>Understand each customer’s specific needs  </...
Customer Relationship Management Software (cont’d.) <ul><li>Basic CRM </li></ul><ul><ul><li>Uses customer information to s...
Customer Relationship Management Software (cont’d.) <ul><li>CRM software source </li></ul><ul><ul><li>Companies create the...
Electronic Commerce, Eighth Edition
Customer Relationship Management Software (cont’d.) <ul><li>1996 to 2000 </li></ul><ul><ul><li>Early days of CRM software ...
Supply Chain Management Software <ul><li>Companies coordinate planning and operations: </li></ul><ul><ul><li>With industry...
Supply Chain Management Software (cont’d.) <ul><li>Two major firms offering SCM software </li></ul><ul><ul><li>i2 Technolo...
Supply Chain Management Software (cont’d.) <ul><li>JDA Software (cont’d.) </li></ul><ul><ul><li>2006: JDA Software purchas...
Content Management Software <ul><li>Content management software </li></ul><ul><ul><li>Controls large amounts of text, grap...
Content Management Software (cont’d.) <ul><li>Companies providing content management software </li></ul><ul><ul><li>As com...
Knowledge Management Software <ul><li>Systems that help manage knowledge itself </li></ul><ul><ul><li>Rather than document...
Knowledge Management Software (cont’d.) <ul><li>Includes tools to read: </li></ul><ul><ul><li>Electronic documents, scanne...
Summary <ul><li>Small, midsize, large businesses </li></ul><ul><ul><li>Electronic commerce  </li></ul></ul><ul><ul><ul><li...
Upcoming SlideShare
Loading in...5
×

9781423903055 ppt ch09

1,684
-1

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,684
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
140
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

9781423903055 ppt ch09

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

    Clipping is a handy way to collect important slides you want to go back to later.

×