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Launching a Successful Online Business and EC Projects
Learning Objectives
1. Understand the fundamental requirements for initiating
an online business.
2. Describe the process of initiating and funding a startup e-
business or large e-project.
3. Understand the process of adding EC initiatives to an
existing business.
4. Describe the issues and methods of transforming an
organization into an e-business.
5. Describe the process of acquiring websites and evaluate
building versus hosting options.
Copyright © 2012 Pearson Education 10-1
Learning Objectives
6. Understand the importance of providing and managing
content and describe how to accomplish this.
7. Evaluate websites on design criteria, such as appearance,
navigation, consistency, and performance.
8. Understand how search engine optimization may help a
website obtain high placement in search engines.
9. Understand how to provide some support e-services.
10. Understand the process of building a webstore.
11. Know how to build a webstore with templates.
Copyright © 2012 Pearson Education 10-2
Getting into E-Commerce and
Starting a New Online Business
GETTING INTO E-COMMERCE
STARTING A NEW ONLINE BUSINESS
AN E-STARTUP IS A STARTUP
CREATING A NEW COMPANY OR ADDING AN
ONLINE PROJECT
1. Identify a consumer or business need in the
marketplace.
2. Investigate the opportunity.
3. Determine the business owner’s ability to meet the
need.
Copyright © 2012 Pearson Education 10-3
Getting into E-Commerce and
Starting a New Online Business
Some Tips for Success
1. Do your homework.
2. Aim for excitement.
3. Whittle, shape, iterate, repeat.
4. Get real.
5. Avoid creating a gizmo.
Cloning
Copyright © 2012 Pearson Education 10-4
Getting into E-Commerce and
Starting a New Online Business
PLANNING ONLINE BUSINESSES
business plan
A written document that identifies a company’s goals
and outlines how the company intends to achieve the
goals and at what cost
business case
A document that justifies the investment of internal,
organizational resources in a specific application or
project
Copyright © 2012 Pearson Education 10-5
Copyright © 2012 Pearson Education 10-6
Getting into E-Commerce and
Starting a New Online Business
FUNDING A NEW ONLINE BUSINESS
First Round of Initial Funding
angel investor
A wealthy individual who contributes personal funds and
possibly expertise at the earliest stage of business
development
incubator
A company, university, or nonprofit organization that
supports businesses in their initial stages of development
Copyright © 2012 Pearson Education 10-7
Getting into E-Commerce and
Starting a New Online Business
Second Round Fina
venture capital (VC)
Money invested in a business by an individual, a group of
individuals (venture capitalists), or a funding company in
exchange for equity in the business
Additional Funding: A Large Partner
The Initial Public Offer (IPO)
Copyright © 2012 Pearson Education 10-8
Adding E-Commerce Initiatives
or Transforming to an E-Business
ADDING EC INITIATIVES TO AN EXISTING
BUSINESS
A webstore
A portal
E-procurement
Auctions and reverse auctions
M-commerce
Social commerce
Copyright © 2012 Pearson Education 10-9
Adding E-Commerce Initiatives
or Transforming to an E-Business
TRANSFORMATION TO AN E-BUSINESS
What Is Organizational Transformation?
How an Organization Can Be Transformed into an
E-Business
Business Process Reengineering (BPR)
Copyright © 2012 Pearson Education 10-10
Adding E-Commerce Initiatives
or Transforming to an E-Business
business process management (BPM)
Method for business restructuring that combines
workflow systems and redesign methods; covers three
process categories—people-to-people, systems-to-
systems, and systems-to-people interactions
Software Tools for Facilitating the Transformation
to E-Business
Change Management
Copyright © 2012 Pearson Education 10-11
Copyright © 2012 Pearson Education 10-12
Building or Acquiring a Website
CLASSIFICATION OF WEBSITES
informational website
A website that does little more than provide information
about the business and its products and services
interactive website
A website that provides opportunities for the customers
and the business to communicate and share information
attractors
Website features that attract and interact with visitors in
the target stakeholder group
Copyright © 2012 Pearson Education 10-13
Building or Acquiring a Website
transactional website
A website that sells products and services
collaborative website
A site that allows business partners to collaborate
social-oriented website
A site that provides users online tools for
communication and sharing information on common
interests
Copyright © 2012 Pearson Education 10-14
Building or Acquiring a Website
BUILDING A WEBSITE
Steps in Building a Website
1. Select a Web host.
2. Register a domain name.
3. Create and manage content.
4. Design the website.
5. Construct and test the website.
6. Market and promote the website.
Copyright © 2012 Pearson Education 10-15
Copyright © 2012 Pearson Education 10-16
Website Hosting
and Obtaining a Domain Name
WEB HOSTING OPTIONS
storebuilder service
A hosting service that provides disk space and services to help
small and microbusinesses build a website quickly and
cheaply
A Dedicated Hosting Service
Web hosting service
A dedicated website hosting company that offers a wide range of
hosting services and functionality to businesses of all sizes
mirror site
An exact duplicate of an original website that is physically located
on a Web server on another continent or in another country
Copyright © 2012 Pearson Education 10-17
Website Hosting
and Obtaining a Domain Name
ISP Hosting Combined with Web Designer
ISP hosting service
A hosting service that provides an independent, stand-alone
website for small and medium-sized businesses
self-hosting
When a business acquires the hardware, software, staff,
and dedicated telecommunications services necessary to
set up and manage its own website
Copyright © 2012 Pearson Education 10-18
Website Hosting
and Obtaining a Domain Name
REGISTERING A DOMAIN NAME
domain name
A name-based address that identifies an Internet-
connected server; usually it refers to the portion of the
address to the left of .com and .org, etc.
Domain Name System (DNS)
A hierarchical naming system for computers, services, or
any resource participating in the Internet; it is like a
directory
Copyright © 2012 Pearson Education 10-19
Content Creation,
Delivery, and Management
content
The text, images, sound, and video that make up a
Web page
CATEGORIES AND TYPES OF CONTENT
dynamic Web content
Content that must be kept up-to-date
Copyright © 2012 Pearson Education 10-20
Copyright © 2012 Pearson Education 10-21
Content Creation,
Delivery, and Management
Primary and Secondary Content
cross-selling
Offering similar or complementary products and services to
increase sales
up-selling
Offering an upgraded version of the product in order to boost
sales and profit
Promotion
Comment
Copyright © 2012 Pearson Education 10-22
Content Creation,
Delivery, and Management
CREATION OR ACQUISITION OF CONTENT
Buying Content
syndication
The sale of the same good (e.g., digital content) to many
customers, who then integrate it with other offerings and
resell it or give it away free
Web syndication
A form of syndication in which a section of a website is
available for other sites to use
Copyright © 2012 Pearson Education 10-23
Content Creation,
Delivery, and Management
Really Simple Syndication (RSS)
A family of Web-feed formats used to publish frequently
updated digital content
Copyright © 2012 Pearson Education 10-24
Content Creation,
Delivery, and Management
podcast
A media file that is distributed over the Internet using
syndication feeds for playback on mobile devices and
personal computers; as with the term radio, it can mean
both the content and the method of syndication
A collection of audio files in MP3 format
Representative Content-Related Vendors
Content Delivery Networks
Copyright © 2012 Pearson Education 10-25
Content Creation,
Delivery, and Management
personalized content
Web content that matches the needs and expectations of
the individual visitor
e-newsletter
A collection of short, informative articles sent at regular
intervals by e-mail to individuals who have an interest in
the newsletter’s topic
Copyright © 2012 Pearson Education 10-26
Content Creation,
Delivery, and Management
content management
The process of adding, revising, and removing content
from a website to keep content fresh, accurate,
compelling, and credible
Content Testing and Updating
Measuring Content Quality
Pitfalls of Content Management
Content Removal
Content Management Software
Copyright © 2012 Pearson Education 10-27
Content Creation,
Delivery, and Management
CATALOG CONTENT AND ITS MANAGEMENT
CONTENT MAXIMIZATION AND STREAMING
SERVICES
Content for Large EC Sites
Copyright © 2012 Pearson Education 10-28
Copyright © 2012 Pearson Education 10-29
Website Design
Guidelines for a successful Website:
1. Build it for users (useful for the user, not necessarily
the company).
2. Make it useful (e.g., usability test).
3. Make information easy to find.
4. Accommodate all users, including those with
disabilities.
5. Build a comprehensive, responsive, and effective site.
Copyright © 2012 Pearson Education 10-30
Website Design
6. Measure the site against the best of its peer group.
7. Build trust; be up front about security, privacy, and
marketing policies.
8. Assign ownership to users, but work as a team with the
technical people.
9. Set priorities; do the most beneficial stuff first.
10. Watch for new developments and encourage
innovation.
Copyright © 2012 Pearson Education 10-31
Website Design
information architecture
How the site and its Web pages are organized, labeled,
and navigated to support browsing and searching
throughout the website
Copyright © 2012 Pearson Education 10-32
Copyright © 2012 Pearson Education 10-33
Copyright © 2012 Pearson Education 10-34
Website Design
SITE NAVIGATION
site navigation
Aids that help visitors find the information they need
quickly and easily
Site Map and Navigation
Copyright © 2012 Pearson Education 10-35
Copyright © 2012 Pearson Education 10-36
Website Design
PERFORMANCE (SPEED)
COLORS AND GRAPHICS
usability (of website)
The quality and usefulness of the user’s experience
when interacting with the website
What Annoys EC Customers?
Copyright © 2012 Pearson Education 10-37
Providing
E-Commerce Support Services
WHO BUILDS THE WEBSITE?
PAYMENTS: ACCEPTING CREDIT CARDS
card-not-present (CNP) transaction
A credit card transaction in which the merchant does
not verify the customer’s signature
Copyright © 2012 Pearson Education 10-38
Providing
E-Commerce Support Services
WEBSITE PROMOTION
Internal Website Promotion
signature file
A simple text message an e-mail program automatically adds
to outgoing messages
Web analytics
The measurement, collection, analysis, and reporting of
Internet data for the purposes of understanding and
optimizing Web usage
Copyright © 2012 Pearson Education 10-39
Providing
E-Commerce Support Services
search engine optimization (SEO)
The application of strategies intended to position a
website at the top of Web search engines
CUSTOMER RELATIONSHIP MANAGEMENT
Using Content to Build Customer Relationships
Copyright © 2012 Pearson Education 10-40
Opening a Webstore
OPTIONS FOR ACQUIRING WEBSTORES
Build them from scratch
Build them from components
Build with templates (storebuilders)
Copyright © 2012 Pearson Education 10-41
Opening a Webstore
Selecting a Development Option. Consider:
Customers
Merchandising
Sales service
Promotion
Transaction processing
Marketing data and analysis
Branding
Copyright © 2012 Pearson Education 10-42
Opening a Webstore
YAHOO! SMALL BUSINESS
Getting Started
Take a Tour and See the Videos
Using the Templates
Copyright © 2012 Pearson Education 10-43
Managerial Issues
1. What does it take to create a successful online business?
2. Is creating a website a technical task or a management
task?
3. How do we attract visitors to the website?
4. How do we turn visitors into buyers?
5. Are best practices useful?
6. What should my new business give to funders?
7. What are important factors for successful Web
management?
Copyright © 2012 Pearson Education 10-44
Summary
1. Fundamental requirements for initiating an online
business
2. Funding options for a startup online business
3. Adding e-initiatives
4. Transformation to e-business
5. Website hosting options for an online business
Copyright © 2012 Pearson Education 10-45
Summary
6. Provide content that attracts and keeps website
visitors.
7. Design a visitor-friendly site.
8. High placement in search engines is key.
9. Provision of support services.
10. The process of building a webstore.
11. Using templates to build a webstore.
Copyright © 2012 Pearson Education 10-46
Copyright © 2012 Pearson Education 10-47
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2012 Pearson Education

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launching a successful online business and ec projects

  • 1. Launching a Successful Online Business and EC Projects
  • 2. Learning Objectives 1. Understand the fundamental requirements for initiating an online business. 2. Describe the process of initiating and funding a startup e- business or large e-project. 3. Understand the process of adding EC initiatives to an existing business. 4. Describe the issues and methods of transforming an organization into an e-business. 5. Describe the process of acquiring websites and evaluate building versus hosting options. Copyright © 2012 Pearson Education 10-1
  • 3. Learning Objectives 6. Understand the importance of providing and managing content and describe how to accomplish this. 7. Evaluate websites on design criteria, such as appearance, navigation, consistency, and performance. 8. Understand how search engine optimization may help a website obtain high placement in search engines. 9. Understand how to provide some support e-services. 10. Understand the process of building a webstore. 11. Know how to build a webstore with templates. Copyright © 2012 Pearson Education 10-2
  • 4. Getting into E-Commerce and Starting a New Online Business GETTING INTO E-COMMERCE STARTING A NEW ONLINE BUSINESS AN E-STARTUP IS A STARTUP CREATING A NEW COMPANY OR ADDING AN ONLINE PROJECT 1. Identify a consumer or business need in the marketplace. 2. Investigate the opportunity. 3. Determine the business owner’s ability to meet the need. Copyright © 2012 Pearson Education 10-3
  • 5. Getting into E-Commerce and Starting a New Online Business Some Tips for Success 1. Do your homework. 2. Aim for excitement. 3. Whittle, shape, iterate, repeat. 4. Get real. 5. Avoid creating a gizmo. Cloning Copyright © 2012 Pearson Education 10-4
  • 6. Getting into E-Commerce and Starting a New Online Business PLANNING ONLINE BUSINESSES business plan A written document that identifies a company’s goals and outlines how the company intends to achieve the goals and at what cost business case A document that justifies the investment of internal, organizational resources in a specific application or project Copyright © 2012 Pearson Education 10-5
  • 7. Copyright © 2012 Pearson Education 10-6
  • 8. Getting into E-Commerce and Starting a New Online Business FUNDING A NEW ONLINE BUSINESS First Round of Initial Funding angel investor A wealthy individual who contributes personal funds and possibly expertise at the earliest stage of business development incubator A company, university, or nonprofit organization that supports businesses in their initial stages of development Copyright © 2012 Pearson Education 10-7
  • 9. Getting into E-Commerce and Starting a New Online Business Second Round Fina venture capital (VC) Money invested in a business by an individual, a group of individuals (venture capitalists), or a funding company in exchange for equity in the business Additional Funding: A Large Partner The Initial Public Offer (IPO) Copyright © 2012 Pearson Education 10-8
  • 10. Adding E-Commerce Initiatives or Transforming to an E-Business ADDING EC INITIATIVES TO AN EXISTING BUSINESS A webstore A portal E-procurement Auctions and reverse auctions M-commerce Social commerce Copyright © 2012 Pearson Education 10-9
  • 11. Adding E-Commerce Initiatives or Transforming to an E-Business TRANSFORMATION TO AN E-BUSINESS What Is Organizational Transformation? How an Organization Can Be Transformed into an E-Business Business Process Reengineering (BPR) Copyright © 2012 Pearson Education 10-10
  • 12. Adding E-Commerce Initiatives or Transforming to an E-Business business process management (BPM) Method for business restructuring that combines workflow systems and redesign methods; covers three process categories—people-to-people, systems-to- systems, and systems-to-people interactions Software Tools for Facilitating the Transformation to E-Business Change Management Copyright © 2012 Pearson Education 10-11
  • 13. Copyright © 2012 Pearson Education 10-12
  • 14. Building or Acquiring a Website CLASSIFICATION OF WEBSITES informational website A website that does little more than provide information about the business and its products and services interactive website A website that provides opportunities for the customers and the business to communicate and share information attractors Website features that attract and interact with visitors in the target stakeholder group Copyright © 2012 Pearson Education 10-13
  • 15. Building or Acquiring a Website transactional website A website that sells products and services collaborative website A site that allows business partners to collaborate social-oriented website A site that provides users online tools for communication and sharing information on common interests Copyright © 2012 Pearson Education 10-14
  • 16. Building or Acquiring a Website BUILDING A WEBSITE Steps in Building a Website 1. Select a Web host. 2. Register a domain name. 3. Create and manage content. 4. Design the website. 5. Construct and test the website. 6. Market and promote the website. Copyright © 2012 Pearson Education 10-15
  • 17. Copyright © 2012 Pearson Education 10-16
  • 18. Website Hosting and Obtaining a Domain Name WEB HOSTING OPTIONS storebuilder service A hosting service that provides disk space and services to help small and microbusinesses build a website quickly and cheaply A Dedicated Hosting Service Web hosting service A dedicated website hosting company that offers a wide range of hosting services and functionality to businesses of all sizes mirror site An exact duplicate of an original website that is physically located on a Web server on another continent or in another country Copyright © 2012 Pearson Education 10-17
  • 19. Website Hosting and Obtaining a Domain Name ISP Hosting Combined with Web Designer ISP hosting service A hosting service that provides an independent, stand-alone website for small and medium-sized businesses self-hosting When a business acquires the hardware, software, staff, and dedicated telecommunications services necessary to set up and manage its own website Copyright © 2012 Pearson Education 10-18
  • 20. Website Hosting and Obtaining a Domain Name REGISTERING A DOMAIN NAME domain name A name-based address that identifies an Internet- connected server; usually it refers to the portion of the address to the left of .com and .org, etc. Domain Name System (DNS) A hierarchical naming system for computers, services, or any resource participating in the Internet; it is like a directory Copyright © 2012 Pearson Education 10-19
  • 21. Content Creation, Delivery, and Management content The text, images, sound, and video that make up a Web page CATEGORIES AND TYPES OF CONTENT dynamic Web content Content that must be kept up-to-date Copyright © 2012 Pearson Education 10-20
  • 22. Copyright © 2012 Pearson Education 10-21
  • 23. Content Creation, Delivery, and Management Primary and Secondary Content cross-selling Offering similar or complementary products and services to increase sales up-selling Offering an upgraded version of the product in order to boost sales and profit Promotion Comment Copyright © 2012 Pearson Education 10-22
  • 24. Content Creation, Delivery, and Management CREATION OR ACQUISITION OF CONTENT Buying Content syndication The sale of the same good (e.g., digital content) to many customers, who then integrate it with other offerings and resell it or give it away free Web syndication A form of syndication in which a section of a website is available for other sites to use Copyright © 2012 Pearson Education 10-23
  • 25. Content Creation, Delivery, and Management Really Simple Syndication (RSS) A family of Web-feed formats used to publish frequently updated digital content Copyright © 2012 Pearson Education 10-24
  • 26. Content Creation, Delivery, and Management podcast A media file that is distributed over the Internet using syndication feeds for playback on mobile devices and personal computers; as with the term radio, it can mean both the content and the method of syndication A collection of audio files in MP3 format Representative Content-Related Vendors Content Delivery Networks Copyright © 2012 Pearson Education 10-25
  • 27. Content Creation, Delivery, and Management personalized content Web content that matches the needs and expectations of the individual visitor e-newsletter A collection of short, informative articles sent at regular intervals by e-mail to individuals who have an interest in the newsletter’s topic Copyright © 2012 Pearson Education 10-26
  • 28. Content Creation, Delivery, and Management content management The process of adding, revising, and removing content from a website to keep content fresh, accurate, compelling, and credible Content Testing and Updating Measuring Content Quality Pitfalls of Content Management Content Removal Content Management Software Copyright © 2012 Pearson Education 10-27
  • 29. Content Creation, Delivery, and Management CATALOG CONTENT AND ITS MANAGEMENT CONTENT MAXIMIZATION AND STREAMING SERVICES Content for Large EC Sites Copyright © 2012 Pearson Education 10-28
  • 30. Copyright © 2012 Pearson Education 10-29
  • 31. Website Design Guidelines for a successful Website: 1. Build it for users (useful for the user, not necessarily the company). 2. Make it useful (e.g., usability test). 3. Make information easy to find. 4. Accommodate all users, including those with disabilities. 5. Build a comprehensive, responsive, and effective site. Copyright © 2012 Pearson Education 10-30
  • 32. Website Design 6. Measure the site against the best of its peer group. 7. Build trust; be up front about security, privacy, and marketing policies. 8. Assign ownership to users, but work as a team with the technical people. 9. Set priorities; do the most beneficial stuff first. 10. Watch for new developments and encourage innovation. Copyright © 2012 Pearson Education 10-31
  • 33. Website Design information architecture How the site and its Web pages are organized, labeled, and navigated to support browsing and searching throughout the website Copyright © 2012 Pearson Education 10-32
  • 34. Copyright © 2012 Pearson Education 10-33
  • 35. Copyright © 2012 Pearson Education 10-34
  • 36. Website Design SITE NAVIGATION site navigation Aids that help visitors find the information they need quickly and easily Site Map and Navigation Copyright © 2012 Pearson Education 10-35
  • 37. Copyright © 2012 Pearson Education 10-36
  • 38. Website Design PERFORMANCE (SPEED) COLORS AND GRAPHICS usability (of website) The quality and usefulness of the user’s experience when interacting with the website What Annoys EC Customers? Copyright © 2012 Pearson Education 10-37
  • 39. Providing E-Commerce Support Services WHO BUILDS THE WEBSITE? PAYMENTS: ACCEPTING CREDIT CARDS card-not-present (CNP) transaction A credit card transaction in which the merchant does not verify the customer’s signature Copyright © 2012 Pearson Education 10-38
  • 40. Providing E-Commerce Support Services WEBSITE PROMOTION Internal Website Promotion signature file A simple text message an e-mail program automatically adds to outgoing messages Web analytics The measurement, collection, analysis, and reporting of Internet data for the purposes of understanding and optimizing Web usage Copyright © 2012 Pearson Education 10-39
  • 41. Providing E-Commerce Support Services search engine optimization (SEO) The application of strategies intended to position a website at the top of Web search engines CUSTOMER RELATIONSHIP MANAGEMENT Using Content to Build Customer Relationships Copyright © 2012 Pearson Education 10-40
  • 42. Opening a Webstore OPTIONS FOR ACQUIRING WEBSTORES Build them from scratch Build them from components Build with templates (storebuilders) Copyright © 2012 Pearson Education 10-41
  • 43. Opening a Webstore Selecting a Development Option. Consider: Customers Merchandising Sales service Promotion Transaction processing Marketing data and analysis Branding Copyright © 2012 Pearson Education 10-42
  • 44. Opening a Webstore YAHOO! SMALL BUSINESS Getting Started Take a Tour and See the Videos Using the Templates Copyright © 2012 Pearson Education 10-43
  • 45. Managerial Issues 1. What does it take to create a successful online business? 2. Is creating a website a technical task or a management task? 3. How do we attract visitors to the website? 4. How do we turn visitors into buyers? 5. Are best practices useful? 6. What should my new business give to funders? 7. What are important factors for successful Web management? Copyright © 2012 Pearson Education 10-44
  • 46. Summary 1. Fundamental requirements for initiating an online business 2. Funding options for a startup online business 3. Adding e-initiatives 4. Transformation to e-business 5. Website hosting options for an online business Copyright © 2012 Pearson Education 10-45
  • 47. Summary 6. Provide content that attracts and keeps website visitors. 7. Design a visitor-friendly site. 8. High placement in search engines is key. 9. Provision of support services. 10. The process of building a webstore. 11. Using templates to build a webstore. Copyright © 2012 Pearson Education 10-46
  • 48. Copyright © 2012 Pearson Education 10-47 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2012 Pearson Education