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  • 1. An E-DSS for Strategic Planning of E-Commerce Website Development Ranjit Bose Associate Professor of MIS Anderson School of Management University of New Mexico Albuquerque, NM 87131 USA E-mail: bose@anderson.unm.edu ABSTRACT help the information technology managers and professionals who are considering In this new millennium, entirely new construction of such a DSS for their markets, products, and services are organization. emerging from digital technologies such as Internet based businesses or e-commerce. Strategic planning of e-commerce website development is one of the critical activities of 1. INTRODUCTION an organization within the context of its e- commerce investment and success. The Today’s e-commerce environment is unstructured nature of this problem-solving increasingly becoming complex, the focus is activity makes it an appropriate candidate towards using “The Web” and its enabling for decision support systems (DSS) based technologies to strategically create a web solution design. In this paper, we propose presence or website that can provide value- the development of such a DSS, which we added capabilities and integration in all call an e-DSS, since it is Internet based. The aspects of a business’s functional and purpose of this research is to analyze the operational areas. More businesses are requirements for creating the e-DSS. The moving toward these electronic processes research findings are organized and and procedures that use e-commerce, presented as detailed requirements and pushing the rest of the businesses to take content assessment of each of the e-DSS action or be “e-lagers,” that is, left behind. components, which include the user For example, Lai and Yang (2000) predict interface, model base and database. In that, “total value of goods and services particular, these findings will immensely traded over the web in the United States
  • 2. alone will reach US$327 billion in the year needed. The unstructured nature of the above 2002, an average annual growth rate of problem makes it appropriate for a DSS 110%.” Interestingly, Ince (2000) notes that, based solution. The e-DSS would be able to “only about half of small businesses even provide alternative strategies, as well as have Internet access. Of those, only a small facilities to analyze and evaluate these percentage has continuous Internet access. strategies for selecting the best strategy for To really open up this market, you have to an organization for its e-commerce website get people to understand that the Internet is development. The implications of such a something that can be useful to their system are, first, the e-DSS would bring business.” together new models, new data as well as information, and expert e-commerce E-commerce can be defined as internal knowledge that many individual and external operations of businesses that are organizations and researchers have performed at high speed and response rate to successfully utilized and are seen as critical satisfy the customers, who expect real time in such development. Second, the e-DSS communication and guaranteed satisfactory would provide the decision-makers such as outcomes in products and services. The marketing managers, IS managers, and foundation of e-commerce, in an executives the expectations, investment organization, relies on developing resources, threats, risks, costs, and appropriate websites based on its business opportunities of e-commerce website strategies. It is then critical for decision- development. makers to strategically plan the e-commerce website development, as well as for them to The purpose of this research is to know what tools and technologies could be analyze the requirements for creating the e- used, and how they could be used to analyze DSS. The research findings are organized and to act effectively on this new paradigm. and presented as detailed requirements and content assessment of each of the e-DSS In an unprecedented manner, today’s e- components, which include the user commerce requirements are placing interface, model base and database. In increasing strain on decision-makers to have particular, these findings will immensely the channels available and the infrastructure help the information technology managers visible and effective. Therefore, a specific and professionals who are considering Internet-based DSS which would provide construction of such a DSS for their insight into the critical and complex activity organization. of strategic planning of e-commerce website development could be quite beneficial to a range of companies from startup to Fortune 500. The decisions that would be made based 2. CHALLENGES AND ISSUES FOR on the strategic planning of e-commerce E-DSS website development will directly impact the ability to satisfy customers, suppliers, and Creating a strategic website for e- key stakeholders. commerce has many challenges and impact on an organization’s functional, managerial, This research contends that in this “e- and strategic levels. Specifically, the major era,” a specific Internet-based DSS for groups impacted are strategic planning, IS strategic planning of e-commerce website departments and marketing. Although, other development, which we call an e-DSS, is groups, such as accounting, operations and
  • 3. procurement could be included. For the testing process of middleware technologies purpose of this research, only the major are also critical. One of the critical tasks of groups have been studied and analyzed. the IS departments in organizations is prioritization of the above issues. Strategic planners such as small Furthermore, they are challenged with business owners, CEO, CFO, and VP selecting algorithms, design models, agent marketing are continuously looking to technologies, and doing analysis of business improve business but are also inherently risk and market planning. adverse which in itself creates challenges in web development and e-commerce From the marketing perspective the integration. In this technology era challenge of e-commerce website organizations are more prone to demand risk, development is to define the Internet innovation risk, and inefficiency risk, the customer prior to establishing an Internet goal would be to use the web to reduce these presence (Kiang, Raghu and Shang, 2000). risks and have a clear risk analysis. “Firstly, how many existing or potential Therefore, at the same time there has to be customers are likely to be Internet users? If a controls and audits in place for websites significant proportion of a firm’s customers development and e-commerce projects are Internet users, and the search cost for the before hand. Creating a web environment products and services are reasonably (even will impact current customers, suppliers, moderately) high, then clearly an partners, B2B (business to business) organization should have a presence; (Papazoglou and Tsalgatidou, 2000), and otherwise, it is missing an opportunity to B2C (business to consumer) relationships. inform and interact with its customers… If a Opportunities for focused, quality, high- firm does not have a website, there is a risk speed communications products and that potential customers, who are web savvy, components for communications could fulfill will flow to competitors who have a web the need or concept of immediacy; where presence. Also, what is the information customers, partners, banks, etc. want intensity of a company’s products and everything right now. Therefore, the services?” (Watson, Zinkhan and Pitt, 2000). challenge is to know how to strategically go Marketing then has to answer the question, about integrating websites and e-commerce what web enabling technologies are geared into the business functions that currently for their target market? The website must be exist to solve business problems. Such able to identify and target customer groups critical success factors can impact what and individuals, personalize and give decision-makers must take into consideration guidance in the buying process, use and how they should take them into innovative ways of packaging information consideration when investing in developing and services, such as video clips. Although, new or redeveloping existing website the “marketing goal will be the same as ever: infrastructure. deliver the right product to the right customer at the right time,” (Kenny and The IS department deals with issues Marshall, 2000). The question then is what such as the development and resources of new marketing models can be followed to websites that include high performance and create an effective website. high availability, web design, security risks, authentication and privacy issues. The The complexity and unstructured nature challenges of maintaining user-friendly of the problem-solving process for websites and their applications, and the addressing the above challenges and issues,
  • 4. clearly indicate that an e-DSS is needed. The system does exactly as it is titled. Its function e-DSS, like any DSS, would consist of the is to provide decision support. It does not following components: (a) the users, (b) the make decisions for the user, nor does it user interface, (c) the model base, and (d) the simply supply reports. database. A brief review of DSS is provided in the next section, which is followed by DSS assist managers in assessing the sections that identify the detailed future impact of current decisions. The requirements and contents of each of the system provides this support by returning above components of the e-DSS results based on “what if?” questions, or respectively. assumptions about future conditions. Through an iterative process, a DSS can provide the following types of information to decision makers: (a) decision objectives or 3. DSS BACKGROUND criteria, (b) decision alternatives or strategies, and (c) consequences of decision Decision support systems (DSS) allow alternatives. In deriving these results, the people at many different levels to process may be either model-oriented or systematically analyze problems before data-oriented. Model-oriented processes making a decision (Turban 2001). In the make comparisons and perform analyses process, these systems extend the range and based on an objective model. The model is a capability of the decision-making process, coordinated set of parameters or conditions increasing its effectiveness. DSS are and their relationships. Models usually are especially useful in supporting semi- derived from analysis of historical data and structured and unstructured problems. DSS trends. Data-oriented processes focus on are very different from traditional responses for specific inquiries and data information systems that are based on fixed analysis. While models deal with sets of logic patterns and are mainly report conditions, data inquiries and data analysis generators. In contrast, DSS are customized are concerned with specific questions. management systems that support non- routine decision-making and evaluation by offering a variety of options to develop various logic methodologies. 4. E-DSS USERS DSS are integrated multi-platform The users of the e-DSS would include system focused on specific decisions that but not limited to the following members: combines corporate data, models, and strategic planners, VP of marketing interactive, user-friendly software into a communications, project leader of web single powerful support system under user development, marketing design team leader, control. DSS occupy a wide band in the technical IS managers, programming leaders, spectrum of data versus model-oriented web server managers, and database systems. DSS are always a combination of administrators. Other decision-makers that both data and models, but one system will might be involved would be project auditors, differ in emphasis from another. The human resource managers, enterprise interactive and user-friendly software in DSS business application leaders who may need is designed to be as easy to use as possible. It large application integration to systems such is geared primarily toward corporate users as Peoplesoft, Oracle Financials, SAP who are not very computer-oriented. The systems, and procurement.
  • 5. 5. E-DSS USER INTERFACE such as Action Technologies might be integrated with project task applications and Given that the e-DSS itself is Internet vote and ranking process to facilitate the based, the user interface would have to be decision-maker’s progress. Additionally, an very user friendly. The e-DSS would be a EDM system such as WebFileShare, where true example of what a website might “documents in an electronic form are ultimately provide (Conway and Koehler, provided by a single repository (typically a 2000). The user interface must be “adaptable web server), only the current version needs to different users’ needs and communicate to be provided. Access can be restricted as is consistent commands to the internal required. Essentially, electronic document components of the DSS,” (Hoffman and management (EDM) system provide Novak, 2000). In order for the user interface information to decision-makers in a usable to be adaptable, at the level mentioned format, much like an executive information above, it must incorporate collaborative system,” (Turban, 2001). This would be ideal technology capabilities and integration for the formation of website strategic facilities and additionally, be able to provide planning, proposals, audits, ranking each of the major user groups, specific evaluations, and executive acceptance abilities and functions for them to carry out. documents. The user interface must also be able to provide input to web models that are In order for the market planners to within the model base. generate ideas, that could use animation and video clips, to facilitate marketing products, the e-DSS must be able to display these utilities in a general format so as to help 6. E-DSS MODEL BASE these market planners in the determination of whether such technology might be included It is increasingly becoming difficult for in their own site. Data capturing samples organizations to adjust their business models from web server logs, and agents or to accommodate emerging e-commerce algorithms should be provided to assess what technologies that could potentially provide type of critical data must be captured for sources for business opportunities. The e- marketing analysis. Additionally, the user DSS model base would provide a interface must allow the users to use the representation of models that organizations models interactively, for example, use of would use to understand and analyze the cost models must be web form based so that domain problems and their possible variables could be easily inputted by solutions. In the model base, the models strategic decision makers; what-if scenarios would include traditional strategic, could be analyzed and saved for later marketing, and IS models that have been decision ranking by the user group. time-tested and proved to be effective such Integration, for example, with MS FrontPage as SWOT (strength, weakness, opportunity and Netscape enterprise Web Server could and threat) analysis, CBB (customer buying allow web designers and web programmers behavior), Systems Life Cycle analysis, to jointly create prototypes, then have the Feasibility analysis, decision tree analysis, group vote or rank website prototypes or costing models, NPV analysis, ROI analysis, integration functions. etc. Additional models, obtained from research literature, that are specific to Collaborative utilities such as different aspects of the strategic planning of brainstorming engine and workflow engine e-commerce website development process
  • 6. would also be included in the model base. perspective of the planned system,” (Larsen These models can be categorized, by the and Bloniarz, 2000). major user groups’ involvement in the decision process, into three categories: The decision-makers, using this model, strategic planning, marketing and IS. could then look at the cost and benefits analysis, or use a more formal project cost or resource allocation methods, or a 6.1 Strategic planning models combination of traditional project evaluations such as multiple attribute utility Research was conducted to find new models. Advantages of this model was that it strategic planning models that have a clear was simple and straightforward to focus towards expected costs, benefits or understand, and it also provided the expectations, and ability to narrow options opportunity to organizations that were for developing e-commerce websites. Three considering expanding their websites with of the most critical strategic planning models additional services or upgrades or integration found are described below. with B2B functions and e-business functionality. It captured the critical Larsen and Bloniarz (2000) developed a information from the planner and gave a model called “the cost-performance model,” detailed process of evaluation and use. (see Figure 1), that is very insightful for the purpose. This model consists of three tools. Fellenstein and Wood (2000) provide two models for strategic planning. The “The first tool – the system features and graphical representations of these models as functionality worksheet – helps identify the shown in Figures 2 and 3, help understand business goals a web service has to serve, as where an organization might be and what well as the delivery mechanisms that will be direction it wants its website development to used to support the service (see Table 1). go. “The new business strategies” model This tool provides a framework for making shows what critical factors such as human decisions supported by the model. The resources, marketing, partnerships, and second tool – called the performance knowledge acquisitions are required. The worksheet – identifies the important factors “importance of the value chain” model defined through the first tool (see Table 2). shows how multiple enterprises have These factors are fleshed out as performance relationships focused on integrating variables, measures, and targets. The factors information flows to exploit information and give an organization a method for defining in knowledge for strategic business objectives. detail the goals of a service, as well as a It focuses on increasing value through framework for measuring whether the internal relations among firms. A dynamic service meets these goals after its market configuration involves a market- implementation. The third tool – the cost mediated set of relations focused on worksheet – helps address comprehensive set increasing flexibility and opportunity for of cost areas and calculates a rough estimate strategic business objectives (Gray, 2000). It of the system’s costs (see Table 3). Though is interesting to see that all three strategic any one of the three tools can be used alone models above greatly emphasize knowledge or be customized to fit a specific and data management prior to and during the organization’s process of system operation of a website. development, the three together are complementary, providing a comprehensive
  • 7. 6.2 Marketing models matches appropriate web technologies such as search engines, audio, video, FTP, Extensive, new marketing models were NewWire, VR, etc., with important market found from literature for website attributes such as atmospherics (retail development. Marketing on the web environment), personalization experience, emphasizes on seeing where revenue can be advertising, culture and news. This enables developed. These new marketing models are organizations to promote differentiation, fundamentally designed to derive revenue develop new markets, create one-to-one from new sources that have not been thought customized interaction, facilitate product of before. Examples of these models are: development, diversify new products to new New imaginative models that focus on markets, and be continuously innovative. finding innovative combinations for advertising – like subscription fees, transaction costs, and referral fees. Affiliate 6.3 Information systems models models, use other websites to bring customers to the organization’s site. Internet Information systems models for e- realities models – focus on wide distribution commerce website development focus on that can allow companies to keep customers, project management, web performance, suppliers, and personnel informed of latest network traffic pricing for high availability changes, thereby lowering costs and and security. Technology assessments models improving customer satisfaction. E-branding provide project management in comparing market models – focus on branding strategies technologies by having host and control to immerse customers in an experience that projects. This is similar to having can reinforce and amplify the organization’s production, quality, and development regions brand thereby securing repeat customers to for moving new technologies such as their website. middleware, upgrades, and patches to production systems. Congestion is a problem Another useful marketing model, called for web performance and therefore, is a I2 M (see Figure 4), provides a detailed critical factor in each of the web structured approach of determining what development phases. Capacity planning types of companies would be effective in encompasses many models such as using the Internet for coordination of their workload, prediction, and performance planned marketing strategy. The model models. Experts have developed probability defines using a grid, what types of industries density functions, mathematical structures by should be using the Internet as a tool, using the use of fractal models, and LRU stack two parameters: proportion of customers models to characterize workload. The with web access, and information content of technology of proxy servers has been derived product. Organizations that fall on the top- from many expert studies (see Figure 5), right quadrant are prime candidates because where caching has proven to be very cost- many of their customers have Internet access effective because of its ability of adjusting and their products have a high-information the rate at which files are pre-fetched, and of content. Whereas, firms falling on the other minimizing the network load (Menasce, quadrants, particularly on the low-small 2000). Predicting web performance can be quadrant, have less need to invest in e- done through simulation models where web commerce websites (Watson, Zinkhan and server transactions, requests, and load testing Pitt, 2000). More importantly, this model are mocked. Also, there are analytical provides a matrix (I2 M Matrix) which models, which encompass formulas and
  • 8. algorithms that can relate server and work policy, resource allocation, and competitive load parameters. advantage, mainly because different parts of a network are owned by different entities and The QN (queuing network) models are at any given time a customer’s transaction or important models to understand and use for request travels through multiple networked making informed decisions on sizing web infrastructures. The idea of QOS (quality of servers and the underlining infrastructures. service) models have come into play in web services, by providing different customers “QN models represent each resource by with their request rates of network service a queue composed of the resource and a class or performance level. For example, in waiting queue for the resource. A request this model a customer who pays for higher may visit a given resource more than once class gets to have a priority in transmission during its execution. For example, an HTTP than other service classes. Interestingly, this request may require several I/O operations model was proved by simulation, and it on a given disk. The total time spent by a showed that significant performance request obtaining service from a resource is enhancement and monetary benefits can be called the service demand. Service demands achieved by using dynamic prices as do not include any queuing and constitute compared to the two other standard pricing one of the important types of input approaches: fixed charges and time based parameters to QN models. In queuing charges (Gupta, Stahl and Whinston, 1999). network terminology, the entity that flows Models like QOS are needed in the model from one network terminology, the entity base to study and understand possible future that flows from one queue to another is a directions of network management pricing customer. Customers may represent HTTP policies. requests, database transactions, and remote file service request. A customer is the model Web design is extremely critical for any representation of the workload unit of work. website. Web programmer models that are Since a system may contain many different currently available are geared more toward types of workloads contending for resources, what not to do and what principles to follow. a QN model may contain many different A model called TAM (technology classes of customers. For example, different acceptance model), which has been classes of customers in a QN may model validated, shows the perceived usefulness, requests for small text documents and large perceived ease of use, perceived attitude image files store at a web server since they towards use, and behavioral intention of use represent substantially different usage of of an IS system, could be very useful server and network resources,” (Ince, 2000). (Lederer, Maupin, Sena and Zhuang, 2000). The IS group often has to find answer to the These models provide critical insights question, what makes a website useful and that become useful in making decisions easy to use? Eight critical principles such as regarding network topology speaking the user’s language, consistency, interconnections, proxy servers (see Figure minimization of the user’s memory load, 6), and the needed infrastructure of servers, flexibility and efficiency of use, aesthetics routers, and LANs for optimal performance and minimalist design, chunking, progressive of a website. levels of detail, and navigational feedback, used in the TAM model, are needed in a Network management and pricing website’s ability to make it more useful and models are available in the areas of taxation easy to use. Understanding the culture of the
  • 9. audience is also critical but there were no security procedures has been greatly argued. specific models found in this area. For example, the use of SET versus SSL. SET uses “digital certificates to verify the Use of new web intelligent agents is identity of both consumer and the merchant,” important for IS to understand and be able to (Demarais, 2000). Although, it requires apply. The website must have many different supporting APIs on both sides to work but agents that are able to work anonymously “with the backing of the two largest credit- and collaboratively to provide both what card organizations, Visa and MasterCard, marketing wants as one-to-one and SET is poised to become the standard means customized web serving personalization. for credit-card transactions via the Internet,” “The personalized, continuously-running (Stalling, 2000). autonomous nature of agents make them well-suited for mediating those consumer Rohm and Pernul (2000) have behaviors involving information filtering and developed the COPS security model. They retrieval, personalized evaluations, complex note, “users want to have integrated tools coordination and time-based interactions,” guaranteeing privacy, security, and fair trade, (Guttman, Moukas and Maes, 1998). The that are embedded in a legal system which model, called “system architecture for protects from criminal behavior and intelligent browsing on the web,” created by technical failure. On the other hand, users, Lai and Yang (2000) describes the use of especially suppliers, want to freely chose and agents that IS developers can follow. Their eventually change after sometime the market website system architecture (see Figure 7) structure in which they are trading their can provide insight into how agents can digital goods.” This model can explain five capture and help the customer by enhancing market players and the three common the experience as they are browsing on the practice market transactions of information website. Specifically, it includes a DSS phase, negotiation phase and the execution within the agent itself and defines five phase that would possibly provide security separate agents that could be used for solutions. The model focuses on four personalization. components: (a) a framework of the designer of a market transaction, (b) an execution Computer security, at all levels of IS, is environment for specified market important and it is also difficult to determine transactions, (c) different basic (trusted and the legal level of security and the way in non-trusted) services in the network, and (d) which that level is to be achieved (Shaw, appropriate security mechanisms provided 1998). Most security procedures are varied through an API. Ideally the model should and can include a combination of algorithms have a method such as a workflow engine to for encryptions such as the use of private key collaborate between the phases. or public key certifications that are used as digital signatures to ensure privacy, use of Each of the models that are mentioned SSL (secure socket layer), integration with in this section will need specific data that EDI (electronic data interchange) and having need to be collected, stored and used for the intelligent agents provide negotiation analysis by the e-DSS. Therefore, the next processing. The key to security is that each section will focus on the database component organization must formulate a combination of the e-DSS. The database component must and an objective plan that it would require have the ability to communicate with the from file locking through the use of SSL models, which will reside in the model base, transmission. The idea of standardization of for providing the values of variables and
  • 10. parameters in them for analysis. descriptions, prices, and inventory levels. IS would also require up to date data on different technology uses and methods. 7. E-DSS DATA BASE Much of these data that will be needed by the e-DSS would come from the web itself such The data that will be required for as from web performance logs, from web supporting the strategic planning of e- servers, IP, router information from network commerce website development can be utilities to determine throughput, disk and categorized into three main categories: CPU usage. strategic planning data requirements, marketing data requirements, and IS data Additionally, the e-DSS metadata and requirements. Strategic planning data would data objects would also need to be stored. mainly be internal data such as each of the The e-DSS would in itself need to be able to cost elements for the organization’s website. store user profile information of its users This would consist of proposed and/or actual such as managerial preferences. cost of developing the web page process, Furthermore, metadata about the decision networking or Internet service provider, making processes, ranking results, time laps security, business and management such as for each of the decision processes, version accounting functions for the web project, control for integration to other packages or marketing budgets, overall IS middleware middleware also need to be stored. Lastly, components, IS project development, the e-DSS should be able to store metadata maintenance, computer systems, and on what data was most used by the outsourcing. Additionally, data from vendors organization in the decision-making sessions would also be required. by its different decision-makers. The required marketing data is extensive In order to store and organize these vast compared to the other two categories mainly amounts of data, a data warehouse will be due to the need for continuous data capture necessary. A data warehouse is a related to the customers or target audience. “centralized repository that must support To be able to have a website that focuses and complex decision support queries at high redefines the marketing strategy, it will need performance. A data warehouse typically to “continue to acquire and analyze huge utilizes relational database technology due to volumes of information on millions of the maturity of this technology,” consumers to enable delivery across multiple (Rundensteiner, Koeller and Zhang, 2000). A channels,” (Powell, 2000). Intelligent agents data warehouse such as an Oracle 8i RDMS need to be used to collect both users’ profile would have to be one of the core members of and site contents. The users’ profile would the database component of the e-DSS. contain background information such as web user’s name, gender, preferences, location, e- “In data warehousing, data from mail address, time of web surfing, operational systems and other external information about the process on what and systems are periodically extracted and how a user followed the site path such as transformed by data warehouse generation transaction processing logs. The site tools and loaded into a data warehouse. After database would contain the site relationship extraction, the transformation process data, metadata about the site, and actual includes the following activities: (1) filtering contents of the site such as product content, the data to eliminate unnecessary details or
  • 11. fields; (2) cleaning the data to remove the investments. Clearly, a cohesive decision duplicate records, correct typographical support system, such as the e-DSS, can help errors in strings, and add missing field organizations start out with an effective values; (3) converting and translating the website and continuously use the system to extracted operational data to the OLAP improve and integrate the website with new database format; (4) consolidating and technologies, partners, suppliers and aggregating the data from multiple sources; ultimately satisfy their stakeholders and and (5) loading the data into the data customers. This research analyzed the warehouse,” (Bose and Sugumaran, 1999). requirements for creating the e-DSS. Two of the most important abilities in To construct a successful e-DSS for the warehouse should be OLAP (on-line planning e-commerce website development analytical processing) and data mining, both for an organization, there are several of which allow decision-makers the ability to implementation steps which need to be structure the data for greater analysis and addressed. These steps include: (a) findings that would not be possible evaluating the needs, (b) examining the otherwise. OLAP is a utility that is tightly technology and process capabilities, (c) integrated with a modern RDMS such as assessing the website security requirements, Oracle 8i (Karpain and Myers, 2000). Data and (d) determining the related hardware and mining would use intelligent agents, AI software. The research findings provided the technologies and possibly an expert system specifications for these steps for each of the module that will contain algorithms to e-DSS components, which included the user extract unknown relationships from within interface, model base and database. These the data warehouse, to help the decision- findings should be of immense help to the maker. “The data mining tasks can involve information technology managers and the discovery of association rules, sequential professionals who are considering patterns, pagesview clusters, user clusters or construction of such a DSS for their any other pattern discovery method in a organization. website,” (Mobasher, Cooley and Srivastava, 2000). Both OLAP and data mining abilities More research must be done to require mass preprocessing tasks; however, incorporate all areas of business that should they are increasingly becoming very participate in creating an effective strategic important in web environment for providing plan for e-commerce website development, problem-solving capabilities such as the ones that is integrated with the organization’s identified for the e-DSS. business strategy. For example, incorporating HR (human resource) for allocating the core competencies skills, supply chain model dynamics and the new 8. CONCLUSION CRM (customer relationship management) models. Another important area of research Why do some e-commerce websites will be analyzing the dynamics of B2B and deliver real benefits to both buyers and how partnership models can impact website suppliers while others struggle to establish development. Research should also be done their “offerings?” Because an organization on how manufacturing relationships and web needs to have a strategic plan for e- mining technologies and EDI technologies commerce website development that is in be integrated for capturing critical data. line with its business strategy before it makes
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  • 14. COST-PERFORMANCE MODEL Figure 1: The cost-performance model Table 1: Worksheet for system features and functionality. Modest Moderate Elaborate Identification System features Who are your customers? and functionality What information-based Identification services will you provide? Identificatio Benefits and n Costs Performance How will customers get access to these services? What will customers be able to do? Modest Moderate What system features will be included? Elaborate What information sources (internal and external) Benefit/Cost Multiple Attribute must be coordinated? Analysis Utility Model What security and confidentiality measures must be implemented? Resource Allocation Method What activities will be Decision outsourced? Source: Larsen, K.A and Bloniarz, P. ./ Cost Performance Model
  • 15. Cost-Performance Worksheet Table 2: Cost Worksheet MODEST MODERATE ELABORATE First Year Subseq. First Year Subseq. First Year Subseq. Cost Annual Cost Annual Cost Annual Organizational Readiness Training for Technology Awareness 1 Planning for Internet Presence 2 Access for Staff and Other Users Hardware for End Users 3 Software for End Users 4 Network and Internet Access for End Users 5 Other Vendor Services 6 Human Resources Start-up Process for Equipment Procurement 7 Establish and Manage Vendor and ISP Contracts 8 Content Development and Maintenance Hardware for Content Developers 14 Software for Content Developers 15 Network and Internet Access for Content Developers 16 Other Vendor Services 17 Human Resources Start-up Process for Equipment Procurement 18 Establish and Manage Vendor Contracts 19 Development and Delivery of Staff Training 20 Staff Time in Training 21 Webmaster 22 Editorial Review 23 Content Creation and Coordination 24 Web Site Design and Development 25 Staff Support for Service 26 Programming Support 27 Database Administration 28
  • 16. Table 3: Cost-Performance Form Host of Site Infrastructure Hardware 31 Software 32 Network and Internet Access 33 Other Vendor Services 34 Human Resources Front-end Research and Technical Evaluation 35 Start-up Process for Equipment Procurement 36 Establish and Manage Vendor and ISP Contracts 37 Development and Delivery of Staff Training 38 Staff Time in Training 39 Network and Systems Administration 40 Web Server Management 41 Operations Support 42 Clerical Support 43 INFRASTRUCTURE AND OTHER SUBTOTAL HUMAN RESOURCES SUBTOTAL TOTAL COSTS
  • 17. New Business Strategies Interacting with Consumers Across Micro Market Manage Multi- Enterprises BTB Commerce firm Value Mass Custom Nets Sense & Responds Behavior Within the Enterprise Develop Strong Brands Extranet Enterprise Build & Manage Core Intranet Competencies Enterprise Knowledge Management Figure 2:
  • 18. Materials Data Finance Process Supplier Information Trading Partners Customer Marketing Figure 3: Distribution
  • 19. Figure 4: Internet Presence Grid With Illustrative Examples Information content of products Low High Large Office Industrial Proportion Supplies Products of Customers with Web Access Food and Consumer Beverages Electronics Small Figure 5: An Intranet with a Proxy Server: Menasce Proxy External Server Web Servers router Internet LAN (10 MBps Ethernet)
  • 20. Figure 6: QN Model Corresponding to the Intranet: Menasce Clients LAN router outgoing link ISP Internet web server cpu cpu incoming link disk proxy cache server