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Unit 3
 Process Models for Web Application Development
         RUP
         Agile methods


 Business Models for Electronic Commerce




dsbw 2011/2012 q1                                  1
Process Models
 A web/software development process model has four roles:
       Provide guidance about the order of a team's activities.
      Specify artifacts that should be developed.
      Direct the tasks of individual developers and the team as a whole.
      Offer criteria for monitoring and measuring the project's products
        and activities.
   The process model should define the workflows, activities, artifacts, and
    roles in the development process
   A workflow is set of activities—requirements, analysis, design,
    implementation, testing, and deployment—that ultimately produce
    tangible and observable results: artifacts
   An artifact is any persistent piece of information that is produced during
    the process: models, source code, documents, etc.
   Artifacts often undergo significant change during the process, resulting in
    series of versions that should be controlled and traceable.

dsbw 2011/2012 q1                                                                 2
The Rational Unified Process (RUP)‫‏‬




 Goal: to support the development of a high-quality product
    within a fixed period of time and at a fixed price.
                     Use case driven
 Key aspects:       Architecture-centric
                     Iterative and incremental

dsbw 2011/2012 q1                                              3
RUP: Overview


         Analyze
      business and
       perceived
        problems
                       Analyze
                                     Develop           Develop
                         the                                                                                 Deploy
                                      vision           project         Iterate
                     understood                                                                              system
                                    document            plan
                      problem




                                                                                 [Pass acceptance critera]
        Develop
        domain
         model                                                                                               Maintain
                                                                 <<defines>>                                 system




                            Manage artifact versions




dsbw 2011/2012 q1                                                                                                 4
RUP: Iterate

                    UP Phases
                    Incept ion   Elaborat ion   Const ruct ion    Transit ion   Product ion

     Workflows

 Requirements


       Analy sis


         Design


Implementation


           Test

       Support

       Iterations   #1      #2                                   #n-1      #n



dsbw 2011/2012 q1                                                                             5
RUP Models: Dependencies and traceabilities


       Project
     Management
       Model
                    Requirements
                     Engineering
                       Model                 Test
                                            Model
       Domain
        Model


                       Analysis    Design           Implementation
                        Model      Model                Model




                                                     Deployment
                                                       Model




dsbw 2011/2012 q1                                                    6
Artifacts in the Requirements Engineering Model

  Vision Document (revised)‫‏‬
  Functional requirements

  Non-functional requirements:
        Business requirements: standards, legislations, regulations
        Architectural requirements: acceptable response times,
         acceptable Web browser versions, etc.
 
New!    User experience (UX) document:
        Defines the targeted look-and-feel for the application, the
         emotion that the application is trying to establish with the user
        The user experience (UX) team is responsible for both
         developing and implementing this document .



 dsbw 2011/2012 q1                                                           7
Artifacts in the Analysis Model
 Use Case Model
         Use Case diagrams
 Conceptual Model
       Domain class diagrams
       Textual integrity constraints

 System Behavior Model
       System’s sequence diagrams
       System’s operation contracts

 State Model
         State diagrams



dsbw 2011/2012 q1                       8
Artifacts in the Design Model
 Physical Architecture
         Description of architectural tiers, processes, protocols, etc.


 Logical Architecture:
         Web Presentation Layer:
               External Design (UX Model)‫‏‬
               Internal Design
                   Class Diagrams using the Web Application Extension for
                    UML
                   Sequence Diagrams
       Domain Layer
       Data Access Layer
       Database Design


dsbw 2011/2012 q1                                                            9
The Process Model should be tailored considering …

 The development team:
     Large vs. small teams
      
    Heterogeneous vs homogeneous teams
    Skill level
 The nature of the application
    Human-critical applications: medical devices, spacecraft systems,
     thermonuclear controls, etc.
    Web applications: they are not human-critical. Still, other factors
     should be considered:
               Evolving technologies
               Greater emphasis on nonfunctional requirements: security, availability,
                accessibility, etc.
 Priorities:
         Fast vs. complete
         Fast vs. correct
dsbw 2011/2012 q1                                                                         10
Another way of building software is possible …

 Most process models are too “heavy”
         Too many things are done with no direct relation with
          programming software.
 Traditional process models are too rigid
       The do not fit well when requirements are incomplete and
        unstable.
       They are not appropriate when frequent releases and short
        development iterations are required.
 Customers should participate more actively
         Lesser focus on the process and more on people


                       Alternative: Agile methods

dsbw 2011/2012 q1                                                   11
Agile Methods
 Examples:
         Agile Modeling
         Agile Unified Process (AUP)
         Agile Data Method
         DSDM
         Essential Unified Process (EssUP)
         Extreme Programming (XP)
         Feature Driven Development (FDD)
         Open Unified Process (OpenUP)
         Scrum
         Lean software development
 All of them are adhered to the Agile Alliance
    (www.agilealliance.org) and its Manifesto
dsbw 2011/2012 q1                                 12
Manifesto for Agile Software Development

               We are uncovering better ways of developing
               software by doing it and helping others do it.
                Through this work we have come to value:


     Individuals and interactions over processes and tools
     Working Software over comprehensive documentation
       Customer Collaboration over contract negotiation
         Responding to Change over following a plan

          That is, while there is value in the items on the right,
                   we value the items on the left more.

dsbw 2011/2012 q1                                                    13
The Twelve Principles of Agile Development

1)    Customer satisfaction through early and continuous delivery of
      valuable software
2)    Welcome changing requirements, even late in development
3)    Deliver working software frequently (2 weeks – 2 months)‫‏‬
4)    Business people and developers must work together daily
5)    Build projects around motivated individuals
6)    Face-to-face conversation
7)    Working software is the primary measure of progress
8)    Agile processes promote sustainable development
9)    Continuous attention to technical excellence and good design
10)   Simplicity
11)   Self-organizing teams.
12)   Regular adaptation to changing circumstances

dsbw 2011/2012 q1                                                      14
eXtreme Programming (XP)‫‏‬
 The four variables to be controlled
         Cost, Time, Quality, and Scope

 The five values to be promoted:
         Communication, Simplicity, Feedback, Courage and Respect

 The five principles that should guide us:
         Rapid feedback, Assuming simplicity, Incremental changes,
          Embracing change, Quality work

 The twelve practices:
         Planning game, small releases, simple designs, automated
          testing, continuous integration, refactoring, pair programming,
          collective ownership, 40-hour week, on-site customer, coding
          standard, metaphor

dsbw 2011/2012 q1                                                           15
The XP Process



          [changed/new requirement] [next iteration]

                                                                       [project end]
            Release              Iteration                   Publication
            Planning                          [all acceptance
                                             tests successful]


                                       [otherwise]




dsbw 2011/2012 q1                                                                      16
XP Iteration




dsbw 2011/2012 q1   17
Scrum


                              Sprint: 2 – 4 weeks




                     SCRUM
                    PROCESS




dsbw 2011/2012 q1                                   18
Scrum Roles
 Pigs
       Product Owner: The person responsible for maintaining the
        Product Backlog by representing the interests of the
        stakeholders.
       Scrum Master: The person responsible for the Scrum process,
        making sure it is used correctly and maximizes its benefits.
       Scrum Team: A cross-functional group of people (5 – 9)
        responsible for managing itself to develop the product.
 Chickens
       Stakeholders (customers, vendors): They are only directly
        involved in the process during the sprint reviews.
       Managers: People who will set up the environment for the
        product development organizations.

dsbw 2011/2012 q1                                                      19
Scrum Artifacts
 Product Backlog
       A list of product requirements – functional and non-functional -
        prioritized by organizational value
       Each Product Backlog will decompose into several Sprint
        Backlogs
 Sprint Backlog
       A prioritized list of tasks to be completed during the sprint.
       Tasks should last between 4 and 16 hours of work

 Sprint Burnout chart
       publicly displayed chart
        showing remaining work in
        the sprint backlog
       Updated every day

dsbw 2011/2012 q1                                                        20
Scrum Ceremonies
 Spring Planning Meeting
       At the beginning of the sprint cycle, the Team selects items
        from the product backlog they can commit to completing
       Sprint backlog is generated

 Daily Scrum
       15 minutes, stand up, at the same location and same time
       All are welcome, but only pigs speak to answer the three
        questions:
          What have you done since yesterday?

          What are you planning to do today?

          Is anything in your way?

       Helps avoid other unnecessary meetings


dsbw 2011/2012 q1                                                      21
Scrum Ceremonies (cont.)
 At the end of a sprint cycle, two meetings are held: The Sprint
    Review Meeting and The Sprint Retrospective
 Sprint Review Meeting (The Demo)
         Team presents to management, customers, users and the Product
          Owner the product increment that has been built during the Sprint
         All product backlog items selected for Sprint are included in the demo
         Afterward, product backlog might be re-arranged, or decision made
          to release early (or fail fast)
 Sprint Retrospective:
         Team, Scrum Master, and (optionally) Product Owner reflect on the
          past sprint:
            What went well?

            What can be improved?




dsbw 2011/2012 q1                                                              22
Agile vs. Heavyweight: A comparison

                                Agile Methods        Heavyweight Methods
Approach                Adaptive                    Predictive
Success                 Business Value              Conformation to plan
Measurement
Project Size            Small                       Large
Management Style        Decentralized               Autocratic
Perspective to Change   Change Adaptability         Change Sustainability
Culture                 Leadership-Collaboration    Command-Control
Documentation           Low                         Heavy
Emphasis                People-Oriented             Process-Oriented
Cycles                  Numerous                    Limited
Domain                  Unpredictable/Exploratory   Predictable
Team Size               Small/Creative              Large
Upfront Planning        Minimal                     Comprehensive
Return on Investment    Early in the project        End of the project
dsbw 2011/2012 q1                                                           23
Agile vs. Heavyweight: When they should be used

                             Agile Methods              Heavyweight Methods
Objective             Rapid Value                  High Assurance
Scope (requirements)‫ ‏‬Subject to change            Well Known
                      Largely emergent             Largely Stable
                      Unknown, Uncertain
Resources (money,     Uncertain budget             Sufficient Budget
infrastructure)‫‏‬      Money tight
Time                  Unclear & Not well Defined   Clear & Defined Milestones
                      Milestones
Risks                 Unknown risks                Well understood risks
                      Major Impact New             Minor Impact
                      Technology
Architecture          Design for current needs     Design for current and future
                                                   needs
Developers            Agile, co-located,           Process-oriented, Adequately
                      collaborative                Skillful
Customers             Collaborative, dedicated,    Knowledgeable, representative,
                      co-located, knowledgeable    collaborative
Refactoring/Cost of   Inexpensive                  Expensive
Change
dsbw 2011/2012 q1                                                                   24
From Agile to Heavyweight




dsbw 2011/2012 q1           25
The Business Process Engineering Hierarchy

 Information strategy planning (ISP)‫‏‬
       strategic goals defined
       success factors/business rules identified
       business model created

                       Business area analysis (BAA)‫‏‬
                          processes/services modeled
                          interrelationships of processes and data


                                 (Web) Application Engineering
                                    modeling applications/procedures that
                                     address (BAA) and constraints of ISP




dsbw 2011/2012 q1                                                            26
Business Models
 Business Model
         A set of planned activities (sometimes referred to as business
          processes) designed to result in a profit in a marketplace.


 E-commerce Business Model
         A business model focused to use the characteristics and
          opportunities of Internet and the Web in a strategic way




dsbw 2011/2012 q1                                                          27
E-commerce Business Model Categories
 Business-to-Consumer (B2C)‫‏‬
 Business-to-Business (B2B)‫‏‬

 Consumer-to-Consumer (C2C)‫‏‬

 Peer-to-Peer (P2P)‫‏‬

 Mobile commerce (M-commerce)‫‏‬




dsbw 2011/2012 q1                      28
B2C Models (1/3)‫‏‬
 Portal
         Offers an integrated package of services and content such as search,
          news, e-mail, chat, downloads, etc.
         Variants:
            Horizontal/General: Yahoo.com, MSN.com

            Vertical/Specialized (Vortal): Universia.es

         Revenue model: Advertising, subscription fees, transaction fees.
 E-tailer (Electronic retailer)‫‏‬
         Online version of retail store.
         Variants:
            Virtual merchant: Amazon.com

            Click-and-mortar: capraboacasa.com

            Online mall: fashionmall.com

            Manufacturer-direct: dell.com

         Revenue model: Sales of goods, transaction fees.

dsbw 2011/2012 q1                                                                29
B2C Models (2/3)‫‏‬
 Content Provider
         Information and entertainment providers such as newspapers, sports
          sites, etc.
         Revenue model: Advertising, subscription fees, affiliate referral fees.
 Transaction broker
         Processors of online sales transactions, such as stockbrokers and
          travel agents.
         Revenue model: transaction fees
 Market creator
         Creators of virtual markets that bring buyers and sellers together.
         Variant: online auctions (eBay.com)‫‏‬
         Revenue model: transaction fees



dsbw 2011/2012 q1                                                               30
B2C Models (3/3)‫‏‬
 Service provider:
       Companies that make money by selling a service, rather than a
        product.
       Revenue model: sales of services.

 Community Provider
       Sites where individuals with particular interests, hobbies and
        common experiences can come together and compare notes.
       Revenue model: Advertising, subscription, affiliate referral fees.




dsbw 2011/2012 q1                                                        31
B2B Models
 B2B Hub: Brings buyers and sellers together to reduce
  procurement costs.
 E-Distributor: Connecting businesses directly with other
  businesses, reducing sales cycles and mark-up.
 B2B Service Provider
         Traditional: Supports companies through online business services.
         Application Service Provider (ASP): Rents Internet-based software
          applications to businesses.
 Matchmaker: Helps businesses find what they want and need on
  the Web
 Infomediary
         Audience Broker: Gathers information about consumers and uses it to
          help advertisers find the most appropriate audience
         Lead Generator: Gathers customer data, and uses it to direct vendors
          to customers.
dsbw 2011/2012 q1                                                             32
Emergent Business Models
 Consumer-to-Consumer (C2C)‫‏‬
       Electronically-facilitated transactions between consumers
        through some third party
       Existent model: Market Creator (B2C)‫‏‬

 Peer-to-Peer (P2P)‫‏‬
         Use of P2P networks for business: besides File Sharing,
          companies are also interested in Distributing Computing,
          Content Distribution, e-market place, Distributed Search
          engines, Groupware and Office Automation via P2P network.
 M-commerce
         A new distribution channel: mobile devices



dsbw 2011/2012 q1                                                     33
References
 CONALLEN, J. Building Web Applications with UML Second
    Edition. Addison-Wesley 2002.
 KAPPEL, Gerti et al: Web Engineering. Wiley, 2006. Chapter
    10
 KHAN, Ali. A Tale of two Methodologies: Heavyweight versus
    Agile. Minor Research Project in IS 615-690, University of
    Melbourne, 2004.
 R. G. Pressman, D. Lowe: Web Engineering. A Practitioner’s
    Approach. McGraw Hill, 2008. Chapters 2-3.
 Agile Software Process Models:
    http://www.rspa.com/spi/process-agile.html


dsbw 2011/2012 q1                                                34

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Unit03: Process and Business Models

  • 1. Unit 3  Process Models for Web Application Development  RUP  Agile methods  Business Models for Electronic Commerce dsbw 2011/2012 q1 1
  • 2. Process Models  A web/software development process model has four roles:  Provide guidance about the order of a team's activities.  Specify artifacts that should be developed.  Direct the tasks of individual developers and the team as a whole.  Offer criteria for monitoring and measuring the project's products and activities.  The process model should define the workflows, activities, artifacts, and roles in the development process  A workflow is set of activities—requirements, analysis, design, implementation, testing, and deployment—that ultimately produce tangible and observable results: artifacts  An artifact is any persistent piece of information that is produced during the process: models, source code, documents, etc.  Artifacts often undergo significant change during the process, resulting in series of versions that should be controlled and traceable. dsbw 2011/2012 q1 2
  • 3. The Rational Unified Process (RUP)‫‏‬  Goal: to support the development of a high-quality product within a fixed period of time and at a fixed price.  Use case driven  Key aspects:  Architecture-centric  Iterative and incremental dsbw 2011/2012 q1 3
  • 4. RUP: Overview Analyze business and perceived problems Analyze Develop Develop the Deploy vision project Iterate understood system document plan problem [Pass acceptance critera] Develop domain model Maintain <<defines>> system Manage artifact versions dsbw 2011/2012 q1 4
  • 5. RUP: Iterate UP Phases Incept ion Elaborat ion Const ruct ion Transit ion Product ion Workflows Requirements Analy sis Design Implementation Test Support Iterations #1 #2 #n-1 #n dsbw 2011/2012 q1 5
  • 6. RUP Models: Dependencies and traceabilities Project Management Model Requirements Engineering Model Test Model Domain Model Analysis Design Implementation Model Model Model Deployment Model dsbw 2011/2012 q1 6
  • 7. Artifacts in the Requirements Engineering Model  Vision Document (revised)‫‏‬  Functional requirements  Non-functional requirements:  Business requirements: standards, legislations, regulations  Architectural requirements: acceptable response times, acceptable Web browser versions, etc.  New! User experience (UX) document:  Defines the targeted look-and-feel for the application, the emotion that the application is trying to establish with the user  The user experience (UX) team is responsible for both developing and implementing this document . dsbw 2011/2012 q1 7
  • 8. Artifacts in the Analysis Model  Use Case Model  Use Case diagrams  Conceptual Model  Domain class diagrams  Textual integrity constraints  System Behavior Model  System’s sequence diagrams  System’s operation contracts  State Model  State diagrams dsbw 2011/2012 q1 8
  • 9. Artifacts in the Design Model  Physical Architecture  Description of architectural tiers, processes, protocols, etc.  Logical Architecture:  Web Presentation Layer:  External Design (UX Model)‫‏‬  Internal Design  Class Diagrams using the Web Application Extension for UML  Sequence Diagrams  Domain Layer  Data Access Layer  Database Design dsbw 2011/2012 q1 9
  • 10. The Process Model should be tailored considering …  The development team: Large vs. small teams   Heterogeneous vs homogeneous teams  Skill level  The nature of the application  Human-critical applications: medical devices, spacecraft systems, thermonuclear controls, etc.  Web applications: they are not human-critical. Still, other factors should be considered:  Evolving technologies  Greater emphasis on nonfunctional requirements: security, availability, accessibility, etc.  Priorities:  Fast vs. complete  Fast vs. correct dsbw 2011/2012 q1 10
  • 11. Another way of building software is possible …  Most process models are too “heavy”  Too many things are done with no direct relation with programming software.  Traditional process models are too rigid  The do not fit well when requirements are incomplete and unstable.  They are not appropriate when frequent releases and short development iterations are required.  Customers should participate more actively  Lesser focus on the process and more on people Alternative: Agile methods dsbw 2011/2012 q1 11
  • 12. Agile Methods  Examples:  Agile Modeling  Agile Unified Process (AUP)  Agile Data Method  DSDM  Essential Unified Process (EssUP)  Extreme Programming (XP)  Feature Driven Development (FDD)  Open Unified Process (OpenUP)  Scrum  Lean software development  All of them are adhered to the Agile Alliance (www.agilealliance.org) and its Manifesto dsbw 2011/2012 q1 12
  • 13. Manifesto for Agile Software Development We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Individuals and interactions over processes and tools Working Software over comprehensive documentation Customer Collaboration over contract negotiation Responding to Change over following a plan That is, while there is value in the items on the right, we value the items on the left more. dsbw 2011/2012 q1 13
  • 14. The Twelve Principles of Agile Development 1) Customer satisfaction through early and continuous delivery of valuable software 2) Welcome changing requirements, even late in development 3) Deliver working software frequently (2 weeks – 2 months)‫‏‬ 4) Business people and developers must work together daily 5) Build projects around motivated individuals 6) Face-to-face conversation 7) Working software is the primary measure of progress 8) Agile processes promote sustainable development 9) Continuous attention to technical excellence and good design 10) Simplicity 11) Self-organizing teams. 12) Regular adaptation to changing circumstances dsbw 2011/2012 q1 14
  • 15. eXtreme Programming (XP)‫‏‬  The four variables to be controlled  Cost, Time, Quality, and Scope  The five values to be promoted:  Communication, Simplicity, Feedback, Courage and Respect  The five principles that should guide us:  Rapid feedback, Assuming simplicity, Incremental changes, Embracing change, Quality work  The twelve practices:  Planning game, small releases, simple designs, automated testing, continuous integration, refactoring, pair programming, collective ownership, 40-hour week, on-site customer, coding standard, metaphor dsbw 2011/2012 q1 15
  • 16. The XP Process [changed/new requirement] [next iteration] [project end] Release Iteration Publication Planning [all acceptance tests successful] [otherwise] dsbw 2011/2012 q1 16
  • 18. Scrum Sprint: 2 – 4 weeks SCRUM PROCESS dsbw 2011/2012 q1 18
  • 19. Scrum Roles  Pigs  Product Owner: The person responsible for maintaining the Product Backlog by representing the interests of the stakeholders.  Scrum Master: The person responsible for the Scrum process, making sure it is used correctly and maximizes its benefits.  Scrum Team: A cross-functional group of people (5 – 9) responsible for managing itself to develop the product.  Chickens  Stakeholders (customers, vendors): They are only directly involved in the process during the sprint reviews.  Managers: People who will set up the environment for the product development organizations. dsbw 2011/2012 q1 19
  • 20. Scrum Artifacts  Product Backlog  A list of product requirements – functional and non-functional - prioritized by organizational value  Each Product Backlog will decompose into several Sprint Backlogs  Sprint Backlog  A prioritized list of tasks to be completed during the sprint.  Tasks should last between 4 and 16 hours of work  Sprint Burnout chart  publicly displayed chart showing remaining work in the sprint backlog  Updated every day dsbw 2011/2012 q1 20
  • 21. Scrum Ceremonies  Spring Planning Meeting  At the beginning of the sprint cycle, the Team selects items from the product backlog they can commit to completing  Sprint backlog is generated  Daily Scrum  15 minutes, stand up, at the same location and same time  All are welcome, but only pigs speak to answer the three questions:  What have you done since yesterday?  What are you planning to do today?  Is anything in your way?  Helps avoid other unnecessary meetings dsbw 2011/2012 q1 21
  • 22. Scrum Ceremonies (cont.)  At the end of a sprint cycle, two meetings are held: The Sprint Review Meeting and The Sprint Retrospective  Sprint Review Meeting (The Demo)  Team presents to management, customers, users and the Product Owner the product increment that has been built during the Sprint  All product backlog items selected for Sprint are included in the demo  Afterward, product backlog might be re-arranged, or decision made to release early (or fail fast)  Sprint Retrospective:  Team, Scrum Master, and (optionally) Product Owner reflect on the past sprint:  What went well?  What can be improved? dsbw 2011/2012 q1 22
  • 23. Agile vs. Heavyweight: A comparison Agile Methods Heavyweight Methods Approach Adaptive Predictive Success Business Value Conformation to plan Measurement Project Size Small Large Management Style Decentralized Autocratic Perspective to Change Change Adaptability Change Sustainability Culture Leadership-Collaboration Command-Control Documentation Low Heavy Emphasis People-Oriented Process-Oriented Cycles Numerous Limited Domain Unpredictable/Exploratory Predictable Team Size Small/Creative Large Upfront Planning Minimal Comprehensive Return on Investment Early in the project End of the project dsbw 2011/2012 q1 23
  • 24. Agile vs. Heavyweight: When they should be used Agile Methods Heavyweight Methods Objective Rapid Value High Assurance Scope (requirements)‫ ‏‬Subject to change Well Known Largely emergent Largely Stable Unknown, Uncertain Resources (money, Uncertain budget Sufficient Budget infrastructure)‫‏‬ Money tight Time Unclear & Not well Defined Clear & Defined Milestones Milestones Risks Unknown risks Well understood risks Major Impact New Minor Impact Technology Architecture Design for current needs Design for current and future needs Developers Agile, co-located, Process-oriented, Adequately collaborative Skillful Customers Collaborative, dedicated, Knowledgeable, representative, co-located, knowledgeable collaborative Refactoring/Cost of Inexpensive Expensive Change dsbw 2011/2012 q1 24
  • 25. From Agile to Heavyweight dsbw 2011/2012 q1 25
  • 26. The Business Process Engineering Hierarchy  Information strategy planning (ISP)‫‏‬  strategic goals defined  success factors/business rules identified  business model created  Business area analysis (BAA)‫‏‬  processes/services modeled  interrelationships of processes and data  (Web) Application Engineering  modeling applications/procedures that address (BAA) and constraints of ISP dsbw 2011/2012 q1 26
  • 27. Business Models  Business Model  A set of planned activities (sometimes referred to as business processes) designed to result in a profit in a marketplace.  E-commerce Business Model  A business model focused to use the characteristics and opportunities of Internet and the Web in a strategic way dsbw 2011/2012 q1 27
  • 28. E-commerce Business Model Categories  Business-to-Consumer (B2C)‫‏‬  Business-to-Business (B2B)‫‏‬  Consumer-to-Consumer (C2C)‫‏‬  Peer-to-Peer (P2P)‫‏‬  Mobile commerce (M-commerce)‫‏‬ dsbw 2011/2012 q1 28
  • 29. B2C Models (1/3)‫‏‬  Portal  Offers an integrated package of services and content such as search, news, e-mail, chat, downloads, etc.  Variants:  Horizontal/General: Yahoo.com, MSN.com  Vertical/Specialized (Vortal): Universia.es  Revenue model: Advertising, subscription fees, transaction fees.  E-tailer (Electronic retailer)‫‏‬  Online version of retail store.  Variants:  Virtual merchant: Amazon.com  Click-and-mortar: capraboacasa.com  Online mall: fashionmall.com  Manufacturer-direct: dell.com  Revenue model: Sales of goods, transaction fees. dsbw 2011/2012 q1 29
  • 30. B2C Models (2/3)‫‏‬  Content Provider  Information and entertainment providers such as newspapers, sports sites, etc.  Revenue model: Advertising, subscription fees, affiliate referral fees.  Transaction broker  Processors of online sales transactions, such as stockbrokers and travel agents.  Revenue model: transaction fees  Market creator  Creators of virtual markets that bring buyers and sellers together.  Variant: online auctions (eBay.com)‫‏‬  Revenue model: transaction fees dsbw 2011/2012 q1 30
  • 31. B2C Models (3/3)‫‏‬  Service provider:  Companies that make money by selling a service, rather than a product.  Revenue model: sales of services.  Community Provider  Sites where individuals with particular interests, hobbies and common experiences can come together and compare notes.  Revenue model: Advertising, subscription, affiliate referral fees. dsbw 2011/2012 q1 31
  • 32. B2B Models  B2B Hub: Brings buyers and sellers together to reduce procurement costs.  E-Distributor: Connecting businesses directly with other businesses, reducing sales cycles and mark-up.  B2B Service Provider  Traditional: Supports companies through online business services.  Application Service Provider (ASP): Rents Internet-based software applications to businesses.  Matchmaker: Helps businesses find what they want and need on the Web  Infomediary  Audience Broker: Gathers information about consumers and uses it to help advertisers find the most appropriate audience  Lead Generator: Gathers customer data, and uses it to direct vendors to customers. dsbw 2011/2012 q1 32
  • 33. Emergent Business Models  Consumer-to-Consumer (C2C)‫‏‬  Electronically-facilitated transactions between consumers through some third party  Existent model: Market Creator (B2C)‫‏‬  Peer-to-Peer (P2P)‫‏‬  Use of P2P networks for business: besides File Sharing, companies are also interested in Distributing Computing, Content Distribution, e-market place, Distributed Search engines, Groupware and Office Automation via P2P network.  M-commerce  A new distribution channel: mobile devices dsbw 2011/2012 q1 33
  • 34. References  CONALLEN, J. Building Web Applications with UML Second Edition. Addison-Wesley 2002.  KAPPEL, Gerti et al: Web Engineering. Wiley, 2006. Chapter 10  KHAN, Ali. A Tale of two Methodologies: Heavyweight versus Agile. Minor Research Project in IS 615-690, University of Melbourne, 2004.  R. G. Pressman, D. Lowe: Web Engineering. A Practitioner’s Approach. McGraw Hill, 2008. Chapters 2-3.  Agile Software Process Models: http://www.rspa.com/spi/process-agile.html dsbw 2011/2012 q1 34