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    03 Building an E-commerce Presence: Web Sites, Mobile Sites, and Apps slides 03 Building an E-commerce Presence: Web Sites, Mobile Sites, and Apps slides Document Transcript

    • eighth edition Kenneth C. Laudon Carol Guercio Traver Chapter 3Copyright © 2012 Pearson Education e-commerce business. technology. society. Building an E-commerce Presence: eighth edition Web Sites, Mobile Sites, and Apps 1
    • Tommy Hilfiger Right-Sizes Its Web Store Class Discussion n What are the factors you should take into account when sizing a Web site’s infrastructure? à # Web servers, # CPUs/server, DB server size, NW speed to Internet n Why are peak times an important factor to consider? à To keep customers satisfied with site response n What reasons were behind Hilfiger’s choice of ATG for its Web site solution? n How can operators of smaller sites deal with the right-sizing issue? àBuy Web hosting services, hire local professional designer/developer, do everything yourselfCopyright © 2012 Pearson Education Slide 3-3 Learning Objectives n Explain the process that should be followed in building an e- commerce Web site n Describe the major issues surrounding the decision to outsource site development and/or hosting n Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software n Understand the issues involved in choosing the most appropriate hardware for an e-commerce site n Identify additional tools that can improve Web site performance n Understand the important considerations involved in developing a mobile Web site and building mobile applicationsCopyright © 2012 Pearson Education Slide 3-4 2
    • Building an E-commerce Site: A Systematic Approach n Most important management challenges: v Developing a clear understanding of business objectives v Knowing how to choose the right technology to achieve those objectivesCopyright © 2012 Pearson Education Slide 3-5 Pieces of the Site-Building Puzzle n Main areas where you will need to make decisions: v Human resources and organizational capabilities n Creating team with skill set needed to build and manage a successful site v Hardware/ software v Telecommunications v Site designCopyright © 2012 Pearson Education Slide 3-6 3
    • Pieces of the E-Commerce Site-Building PuzzleCopyright © 2012 Pearson Education Slide 3-7 The Systems Development Life Cycle n Methodology for understanding business objectives of a system and designing an appropriate solution n Five major steps: 1. Systems analysis/ planning 2. Systems design 3. Building the system 4. Testing 5. ImplementationCopyright © 2012 Pearson Education Slide 3-8 4
    • Web Site Systems Development Life Cycle Figure 3.2, Page 185Copyright © 2012 Pearson Education Slide 3-9 System Analysis/Planning n Business objectives: v List of capabilities you want your site to have n System functionalities: v List of information system capabilities needed to achieve business objectives n Information requirements: v Information elements that system must produce in order to achieve business objectivesCopyright © 2012 Pearson Education Slide 3-10 5
    • Table 3.1, Page 186Copyright © 2012 Pearson Education Slide 3-11 Systems Design: Hardware and Software Platforms n System design specification: v Description of main components of a system and their relationship to one another n Two components of system design: v Logical design n Data flow diagrams, processing functions, databases v Physical design n Translatesfrom logical design into physical components (HW, SW, link capacity)Copyright © 2012 Pearson Education Slide 3-12 6
    • Logical Design for a Simple Web Site Figure 3.3 (a), Page 188Copyright © 2012 Pearson Education Slide 3-13 Physical Design for a Simple Web Site Figure 3.3 (b), Page 188Copyright © 2012 Pearson Education Slide 3-14 7
    • Build/Host Your Own vs. Outsourcing n Outsourcing: Hiring vendors to provide services involved in building site n Build own vs. outsourcing: v Build your own requires team with diverse skill set; choice of software tools; both risks and possible benefits n Host own vs. outsourcing v Hosting: Hosting company responsible for ensuring site is accessible 24/ 7, for monthly fee v Co-location: Firm purchases or leases Web server (with control over its operation), but server is located at vendor’s facilityCopyright © 2012 Pearson Education Slide 3-15 Choices in Building and Hosting Figure 3.4 Page 189Copyright © 2012 Pearson Education Slide 3-16 8
    • Economical but most Most expensive, but Cheapest anddifficult, achieve achieve desired “look simplest, butdesired “look and feel” and feel” and limited “look andand functionality, but functionality, and feel” andmost time consuming less time consuming functionalityCopyright © 2012 Pearson Education Slide 3-17Copyright © 2012 Pearson Education Slide 3-18 9
    • Copyright © 2012 Pearson Education Slide 3-19 Testing, Implementation, and Maintenance n Testing v Unit testing v System testing v Acceptance testing by key personnel in different departments n Implementation and maintenance: v Maintenance is ongoing v Need continual checking, testing, and repair v Maintenance costs: Similar to development costs v Benchmarking : Comparing site to competitors in terms of response speed, quality of layout, and designCopyright © 2012 Pearson Education Slide 3-21 10
    • Factors in Web Site Optimization Figure 3.7, Page 196Copyright © 2012 Pearson Education Slide 3-22 Web Site Budgets n From $5,000 to millions of dollars/year n Components of budget: v System maintenance v System development v Content design and development v Hardware v Telecommunications v SoftwareCopyright © 2012 Pearson Education Slide 3-23 11
    • Components of a Web Site Budget +Copyright © 2012 Pearson Education Slide 3-24 Simple vs. Multi-tiered Web Site Architecture n System architecture v Arrangement of software, machinery, and tasks in an information system needed to achieve a specific functionality n Two-tier v Web server responds to requests for Web pages and v Database server provides backend data storage n Multi-tier v Web server is linked to v Middle-tier layer – a series of application servers performing specific tasks, and also is linked to v Backend layer of existing corporate systems and legacy databasesCopyright © 2012 Pearson Education Slide 3-25 12
    • Two-Tier E-commerce Architecture Figure 3.9(a), Page 199Copyright © 2012 Pearson Education Slide 3-26 Multi-tier E-commerce Architecture Figure 3.9(b), Page 199Copyright © 2012 Pearson Education Slide 3-27 13
    • Web Server Software n All e-commerce sites require basic Web server software to answer HTTP requests from customers n Apache v Leading Web server software (66% of market) v Works with UNIX, Linux Oss (and Windows) n Microsoft’s Internet Information Server (IIS) v Second major Web server software (16% of market) v Windows-basedCopyright © 2012 Pearson Education Slide 3-28 Advantages of Each Web Server Software n Choice of Web server software has no effect on the look of Web pages delivered to customers n Advantages v Microsoft’s development suite: integrated, powerful, and easy to use v Unix’s suite: exceptionally reliable and stable, and supported by worldwide open software communityCopyright © 2012 Pearson Education Slide 3-29 14
    • Table 3.3, Page 200Copyright © 2012 Pearson Education Slide 3-30 Site Management Tools n Basic site management tools v Included in all Web servers, e.g., n Verify thatlinks on pages are still valid n Identify orphan files n Third-party software for advanced management v Monitor customer purchases, marketing campaign effectiveness, keeping track of standard hit counts and page visit info, etc. v E.g., WebTrends Analytics 10, Google AnalyticsCopyright © 2012 Pearson Education Slide 3-31 15
    • Copyright © 2012 Pearson Education Slide 3-32Copyright © 2012 Pearson Education Slide 3-33 16
    • Dynamic Page Generation Tools n Driven by the fact that it’s easier to change the contents of a database than it’s to change the code of an HTML page n Dynamic page generation: v Contents of Web page stored as objects in database and fetched when needed n Common tools: CGI, ASP, JSP, ODBC n Advantages v Lowers menu costs: costs for changing product descriptions and prices v Permits easy online market segmentation: can sell same product to different markets v Enables cost-free price discrimination: can sell same product to different customers at different prices v Enables Web content management system (WCMS)Copyright © 2012 Pearson Education Slide 3-34 Application Servers n Web application servers: v Provide specific business functionality required for a Web site v Type of middleware n Isolatebusiness applications from Web servers and databases v Single-function applications being replaced by integrated software tools that combine all functionality needed for e-commerce siteCopyright © 2012 Pearson Education Slide 3-35 17
    • Table 3.4, Page 204Copyright © 2012 Pearson Education Slide 3-36E-commerce Merchant Server Software n Provides basic functionality for online sales v Online catalog n List of products available on Web site v Shopping cart n Allows shoppers to set aside, review, edit selections, and then make purchase v Credit card processing n Typically works in conjunction with shopping cart n Verifies card and puts through credit to company’s account at checkoutCopyright © 2012 Pearson Education Slide 3-37 18
    • Merchant Server Software Packages n Offer integrated environment that includes most of functionality needed n Key factors in selecting a package v Functionality v Support for different business models v Business process modeling tools v Visual site management and reporting v Performance and scalability v Connectivity to existing business systems v Compliance with standards v Global and multicultural capability v Local sales tax and shipping rulesCopyright © 2012 Pearson Education Slide 3-38 Building Your Own E-commerce Site n Options for small firms v Hosted e-commerce sites, e.g., Yahoo’s Merchant Solutions, bigstep.com, entrabase.com, tripod.com, homestead.com n Site building tools n E-commerce templates v Open-source merchant server software n Enablesyou to build truly custom sites n Requires programmer with expertise, timeCopyright © 2012 Pearson Education Slide 3-39 19
    • Copyright © 2012 Pearson Education Slide 3-40 Choosing the Hardware for an E-commerce Site n Hardware platform: v Underlying computing equipment that system uses to achieve e-commerce functionality n Objective: v Enough platform capacity to meet peak demand without wasting money n Important to understand the factors that affect speed, capacity, and scalability of a siteCopyright © 2012 Pearson Education Slide 3-41 20
    • Right-Sizing Your Hardware Platform: The Demand Side n Demand is the most important factor affecting speed of site n Factors in overall demand: v Number of simultaneous users in peak periods v Nature of customer requests (user profile) v Type of content (dynamic vs. static Web pages) v Required security v Number of items in inventory v Number of page requests v Speed of legacy applicationsCopyright © 2012 Pearson Education Slide 3-42 Table 3.7, Page 209Copyright © 2012 Pearson Education Slide 3-43 21
    • Degradation in Performance as Number of Users Increases—Resource Utilization Figure 3.11(a), Page 211 Copyright © 2012 Pearson Education Slide 3-44 Degradation in Performance asNumber of Users Increases—Number of Connections Figure 3.11(b), Page 211 Copyright © 2012 Pearson Education Slide 3-45 22
    • Capacity of Static Page Web ServersCopyright © 2012 Pearson Education Slide 3-46 The Relationship of Bandwidth to Hits SOURCE: IBM, 2003. Figure 4.13, Page 236Copyright © 2012 Pearson Education Slide 3-47 23
    • Right-Sizing Your Hardware Platform: The Supply Side n Scalability: v Ability of site to increase in size as demand warrants n Ways to scale hardware: v Vertically n Increase processing power of individual components v Horizontally n Employ multiple computers to share workload v Improve processing architecture n Combine vertical and horizontal scaling and using artful design decisionsCopyright © 2012 Pearson Education Slide 3-48 Table 3.8, Page 213Copyright © 2012 Pearson Education Slide 3-49 24
    • Vertically Scaling a System Figure 3.13, Page 213Copyright © 2012 Pearson Education Slide 3-50 Horizontally Scaling a System Figure 3.14, Page 214Copyright © 2012 Pearson Education Slide 3-51 25
    • Table 3.9, Page 215Copyright © 2012 Pearson Education Slide 3-52 Other E-commerce Site Tools n Web site design: Basic business considerations v Enabling customers to find and buy what they need v 75% of users say they would not revisit a Web site that they found annoying to useCopyright © 2012 Pearson Education Slide 3-53 26
    • Table 3.10, Page 216Copyright © 2012 Pearson Education Slide 3-54 Table 3.11, Page 217Copyright © 2012 Pearson Education Slide 3-55 27
    • Tools for Web site optimization n Optimization: v How to attract lots of people to your site n Search engine placement v Metatags, titles, content – use keywords that accurately describe what you sell or do v Identify market niches, localize site – be more specific, e.g., “Victorian jewelry,” to attract small, specific groups who are intensely interested in period jewelry v Offer expertise – white papers, industry analyses, FAQ pages to build confidence on users v Links – encourage other sites to link to your site; list your site with Yahoo Directory; Build Facebook page for firm v Search engine ads – choose your keywords and buy direct exposure on search engines v Local e-commerce – if Web site or you products are attractive to local people, use keywords (e.g., “Vermont cheese” or “San Francisco blues music”)Copyright © 2012 Pearson Education Slide 3-56 Tools for Interactivity and Active Content n Web 2.0 design elements: v Widgets: Small pre-built chunk of code that executes automatically in an HTML Web page, e.g., weather, news headlines, clocks, calendars v Mashups: Pull functionality/ data from one program and include it in another, e.g., Google Maps mashups n CGI (Common Gateway Interface) n ASP (Active Server Pages) n Java, JSP, and JavaScript n ActiveX and VBScript n ColdFusionCopyright © 2012 Pearson Education Slide 3-57 28
    • Personalization Tools n Personalization v Ability to treat people based on personal qualities and prior history with site n Customization v Ability to change the product to better fit the needs of the customer n Cookies: v Primary method to achieve personalizationCopyright © 2012 Pearson Education Slide 3-58 The Information Policy Set n Privacy policy v Set of public statements declaring how site will treat customers’ personal information that is gathered by site n Accessibility rules v Set of design objectives that ensure disabled users can affectively access siteCopyright © 2012 Pearson Education Slide 3-59 29
    • Developing a Mobile Web Presence n Three types of mobile e-commerce software v Mobile Web site v Mobile Web app v Native app n Planning and building mobile presence v As with regular Web site, use systems analysis/ design to identify unique and specific business objectivesCopyright © 2012 Pearson Education Slide 3-60 Table 3.13, Page 228Copyright © 2012 Pearson Education Slide 3-61 30
    • Developing a Mobile Web Presence n Design considerations v Platform constraints: Smartphone/ tablet n Performance and cost v Mobile Web site: n Least expensive v Mobile app: n Can utilize browser API v Native app: n Most expensive; requires more programmingCopyright © 2012 Pearson Education Slide 3-62Copyright © 2012 Pearson Education Slide 3-64 31