Prentice Hall, 2002 1 Chapter 12 Building E-Commerce Applications and Infrastructure.
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Transcript of Prentice Hall, 2002 1 Chapter 12 Building E-Commerce Applications and Infrastructure.
Prentice Hall, 2002 1
Chapter 12
Building E-Commerce Applications
and Infrastructure
Prentice Hall, 2002 2
Learning Objectives
Describe the landscape and framework of EC application developmentDescribe the major EC applications and list their major functionalitiesDescribe the EC architecture development processList the EC application development options and the approaches for option selection
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Learning Objectives (cont.)
Describe the major activities in system analysis and designDescribe the role of application service providers (ASPs)Describe catalogs, Web servers, carts, chatting, and telephony for EC
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Learning Objectives (cont.)
Understand the issue of connecting EC applications to databases, other applications and networks, and to business partnersDescribe site usability and managementDescribe the process of storefront developmentBuild a simple storefront using templates
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Basic Understand
There is a large variety of EC applicationsEC applications keep changing over timeThere are several options for developing EC applicationBuilding a complex applications from components is a viable strategyOne EC application may have many component from several different vendorsEC application may involve several business partners, including consultantsThe web sites and application can be developed in-house, outsourced or a combination of the two
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EC Application Development Process
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Landscape and Framework of EC Application Development
Development processStep 1: EC architecture creation--systems analysis approachStep 2: Select a development optionStep 3: Installing, connecting, and moreStep 4: DeploymentStep 5: Operation and maintenance
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Landscape and Framework of EC Application Development (cont.)
Project managementDevelopment process is complex and must be properly managedTeam formed to manage the process and vendorsCollaborations with business partners is criticalAppropriate management includes periodic evaluations of system performance
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Major EC Application
Storefronts (Sell-side)E-procurement (Buy-side)AuctionsEnterprise portal
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Major EC Functionalities
A storefront—built on seller’s serverB2C storefronts : The Buyer needs :
Discover, search and compare productsSelect product ad negotiate priceAid in evaluation of products and servicesPayment of purchase and order processing
The seller needs :Order confirmationGuest book for comments and contactsCredit verification system Arrange delivery (tracking)
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Major EC functioalities
The Seller needs (cont.)View a personalized page with a record of past purchaseVerify that the product has been shipped using a tracking systemRequest postsale support or feedbackView all lists in a secure user-friendlyProvide content updateConnect to inventory management module
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Storefront subsystems
Research from DeWire, 1998 proposed that EC must containt at least :
1. A merchant system (storefront) that provides the merchant’s catalog with
ProductsPricesPromotion
2. A transaction system for processing orders, payments and other aspects of the transaction
3. A payment gateway that route payment through existing financial system(for credit card and settlement)
•Include shopping cart
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Major EC Applicationsand Their Functionalities (cont.)
A storefront—built on seller’s serverSuppliers’ sell-side in B2B
Personalized catalogsB2B payment gateElectronic contract negotiationProduct configurationAbility to use m-commerceAffiliate program capabilitiesIntegration with corporate back-end systems
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Major EC Applicationsand Their Functionalities (cont.)
E-procurement and reverse auctionsReverse auction (tendering system)
Catalog of items to be tendered and content managementSearch enginePersonalized pages for potential large bidderReverse auction mechanism or real-timeFacility to help for providing RFQsCollaboration with trading partnersStandardization RFQsAutomatic business process workflowAutomatic matching of suppliers with RFQsAutomated language translationAbility for bidding via m-commerce
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Catalog requirements for e-procurement
Search engineComparison engine for alternative vendorsOrdering mechanism Budget and authorization featureUsage comparison (among various department)Payment mechanism
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Major EC Applicationsand Their Functionalities (cont.)
Personalized pagesSecurity and privacy protectionIntegration capabilitiesSearching and indexingModularity
Performance cachingOpennessPolls and evaluationsE-mail serviceServers
Enterprise portals
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Major EC Applicationsand Their Functionalities (cont.)
Collaboration servicesCommunity servicesWeb-automated workflowIntegrated business process solutionsData miningTransaction flow
Language translationCentral coordination of global logisticsIntegration servicesNegotiation mechanismsComprehensive links
Exchanges
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Developing an EC Architecture
The 6 steps of development are (Koontz 2000):Step 1: Define business goals and visionStep 2: Define the information architecture
Indentify the information available on each goalWhich information need to be digitizedUse a tool eg. DNA (Microsoft’s distributed internet architecture)
Step 3: Define data architectureWhat data and information needed to get from customersInvestigate all information that flows among the businesses
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Developing an EC Architecture
The 6 steps of development are (Koontz 2000):Step 4: Define your application architecture
Define the components that meet the data requirements from step 3To interface with legacy systems eg. ERP
Step 5: Define the EC technical architectureExamine the specific hardware and software to support the analysis in the previous stepExamine the middleware, language needed
Step 6: Define the organization architectureHuman resources and procedures required
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Development Strategies forEC Applications
AdvantagesAvailability of many off-the-shelf packagesSaves timeRequires few dedicated personnelNot the first and only user
DisadvantagesSoftware doesn’t exactly fit needsLoss of control over improvements and versionsDifficult to integrateVendors may drop product or go out of business
Buy the applications (turnkey approach)
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Development Strategies forEC Applications (cont.)
LeaseTypes of leasing vendors
Lease the application from an outsourcer and install it on company premisesUse an application system provider (ASP)
In-house development: insourcingDevelopment approaches
Build from scratchBuild from components
Prototyping methodology
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Development Strategies forEC Applications (cont.)
Other development optionsJoin an e-marketplace or exchangeJoin a third-party or reverse auctionJoint venturesJoin a consortiaHybrid approach
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Outsourcing and Applications Service Providers
Outsourcing : For a small company with a few IT staff and smaller budget using outside contractor
Internet malls: common look-and-feel mallISPs: hosting, secure transaction Telecommunication companies: hostingSoftware houses: from IBM->ariba (agent)Outsourcers and others: eg. EDS, EC services
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Applications Service Providers
ASP: agent/vendor who assembles the functions needed by enterprises and packages them with outsourced development, operation, maintenance and other services (Kern and Kreijger,2001)Benefits to the ASP vendor
Companies generate revenues from sources other than connectivity and transport
Lucrative Web site hostingWeb design consultingHosted applications with access charges
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Applications Service Providers (cont.)
Benefits to the leasing companiesSaves time and various expenses in the initial development stage (i.e., labor costs)Reduces software maintenance, upgrading applications, and training timeReduces time-to-marketEnhances ability to adapt to changing market conditions disadv.: Protection, theft of confidential information, virus
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Benefits and Risks of Using an ASP
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Criteria for Selecting a Development Approach
Functionalities of development packages and criteria of choiceInformation requirementsUser friendlinessHardware and software resourcesInstallationMaintenance services
SecurityVendor quality and track recordEstimating costsMeasuring benefitsPersonnelForecasting and planning for technology evolution
Criteria
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Criteria for Selecting a Development Approach (cont.)
ScalingSizingPerformance
Latency time(time to complete the task)throughput
ReliabilitySecurity
For ASP vendor :
Database format and portability
Application and data storage
Scope of service
Support services
Integration : ERP, CRM, SCM, accounting
Criteria (cont.)
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System Analysis Activities and Tools
Requirements analysisMethods for determining requirements
Joint Application Development (JAD) : by key users, managers, EC users, business partners via brainstorming->prototype
Modeling approaches may be based on:Activity/processUse case/object-orientedInterprocess
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System Analysis Activitiesand Tools (cont.)
Component-based developmentComponents evolved from objects of object-oriented methodologyThey are much larger than objects and now serve as plug-and-play building blocks for developing large complex systemsReasons for using components
Code reusabilitySupport for heterogeneous infrastructures and platformsRapid assembly of new business applications
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Components defined
Component is an executable unit of code that provides physical black-box encapsulation of related services or functions which can be accessed only through a consistent, published interface that includes an interaction standard. A component must be capable of being connected to other components to form an application (Allen and Frost, 1998)E.g. user interface icon, a GUI, online ordering tool(business component), Intranet component includes search engines, firewall, web server, browser and telecommunication protocol.
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Using components
Business Process ImprovementAccess business
needs
Provide solution From services
Usingcomponents
Legacy system Database Package Interface
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System Analysis Activitiesand Tools (cont.)
Enterprise application integrationAims to integrate applications (including internal applications) that have been developed by different organizationsIf source code is unavailable (altering the application is not possible), EAI becomes the glue between the applications
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Levels of Enterprise Integration
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Basic of Integration
Common Presentation
Presentation Presentation
Legacyapplication
Packagedapplication
Data Data
Middleware
Legacyapplication
Packagedapplication
Data Data
ApplicationLogic
Presentation
Legacyapplication
Packagedapplication
Data Data
Middleware
ApplicationLogic
Presentation
Presentation Integration model Data Integration model Function Integration model
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Electronic Catalogs, Shopping Carts
Electronic catalogs, shopping carts, and merchant servers
Templates or wizards for creating storefronts and catalog pagesE-shopping carts Web-based order formsDatabase for maintaining product descriptions, etc.Integration with 3rd party software—taxes, shipping, etc.
Electronic payment systems
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Web Chatting, Webcasting,and Internet Telephony
Web chattingCommunication centersCustomer serviceCommunity discussionVideo chat
Webcasting:internet based broadcasting
Text streamsAmbient Webcasts: clips transmitted at periodic intervalStreaming audio
Internet telephonyPc-to-pcPc-to-phonePhone-to-phone
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EC Suites
Suite—combined set of tools giving builder and users:
Greater flexibilitySpecializationCustomizationIntegration Support for complete functionality
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Open Market EC Server Architecture
Source: Interworld,com/solutions
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Commerce Suite
POSMarketplace
POSMarketplace
ProductMerchandising
ProductMerchandising
FulfillmentFulfillment
SCM,MRPWarehousing
SCM,MRPWarehousing
CustomerService
CustomerService
CAMCAM
ERPERP
Ordermanagement
Ordermanagement
information
Content
Transaction
workflow
BusinessIntelligent
BusinessIntelligent
From interworld.com
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EC Suites
IBM WebSphere Commerce SuiteWeb server for catalog managementApplication server for security
Reverse auctionsExchangesContracts
EC suite server sell-side ordering and auctionsDatabase serverHTTP interface
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IBM WebSphere Commerce Suite
Delivers an open, standards-based solution platform with integrated components for building e-marketplaceFacilitates operational efficiency and high return on investmentUses Java and XML technologies to aggregate sellers’ catalogsProvides optimal customization and flexibilityIncorporates e-marketplace functionality
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Connecting to Databases, Legacy Systems, and Business Partners
Connecting to business partnersCritical to success of EC, especially for B2B applicationsIssues to be dealt with:
ConnectivityCompatibilitySecurityScalability
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Web to Database Connection
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Integration example
Build N-Tier,multitier, C/S applicationBrowser tier : presentation of informationApplication server tier : execution of business rules Database server tier : Company’s data
BEA, Inc. used JDBC(Java Database Connectivity) and ODBC (Open Database Connectivity)
TIBCO : TIB(The Information Bus)
Microsoft : ASP (Active Server Pages) use ODBC connect to variety of databases
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Vendor and Software Selection
Steps in selecting software package (Martin et al, 2000)
1: Identification of suitable packages2: Determination of detailed evaluation criteria3: Evaluation of candidate packages4: Choosing a package5: Negotiating the contract
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Vendor and Software Selection (cont.)
Identification of suitable packagesSources of information about packages
Hardware vendorsUser groupsTechnical and trade publicationsConsultants experienced with an application area or industryFriends and competitors
Preliminary evaluation criteria to eliminate all but a few of the most promising packages
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Vendor and Software Selection (cont.)
Determination of evaluation criteriaMust determine in detail what one must know about the packages and how important each criteria is
Characteristics of the vendorFunctional requirements of the systemTechnical requirements the software must satisfyAmount and quality of documentation providedVendor support of package
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Vendor and Software Selection (cont.)
Determination of evaluation criteria (cont.)Requirements for purchase (RFP) is developed including:Information about the vendor
How long the vendor has been in the EC software businessNumber of employees, financial and location of its sales and support officesFirst release date of system being consideredDate of last revisionList of companies using the software to contact as references
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Vendor and Software Selection (cont.)
Determination of evaluation criteria (cont.)
Project team develops essential functional requirements the systems must satisfy (RFP)
Mandatory requirementsDesired featuresStated as questions about the characterizes of the packageEase with which software can be tailored to fit company’s current needs or enhanced in the future
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Vendor and Software Selection (cont.)
Evaluation of candidate packagesRFP is sent to short list of qualified vendors
Responses generate massive volumes of information for evaluation to determine
Gaps between the company’s needsCapabilities of the proposed application packages
To help determine which package, may use a table (see Table 12-2)
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Vendor and Software Selection (cont.)
Criteria Weights
System A
System B
System C
Support for Java standards
XML
SSL
Shoppingcart
Catalogs
Taxation
Personalization
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Vendor and Software Selection (cont.)
Choosing the package once the short list has been prepared
Determine how the packages might be modified to remove any discrepancies with the company’s desired EC applicationMost important factor is additional development effort required to tailor the system:
To company’s needs To integrate with company’s environment
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Vendor and Software Selection (cont.)
Choosing the package (cont.)People are likely to have to adapt to the software
Significant changes in how they do their jobs
Commitment is necessary for the system to succeed
Project team should verify that:Users of the system support the decision to buy the selected package and agree to make it workIS people who will support the system agree that the system will work in their environment and that they can support is satisfactorily
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Vendor and Software Selection (cont.)
Contract negotiation (EC managers and/or IS department)
Specifies the price of the softwareDetermines the type and amount of support to be providedIntegral part of purchase process
Company’s power is in being able to choose another vendor’s productConcessions from vendor must be negotiated before final decision on which package to buy
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Vendor and Software Selection (cont.)
Service level agreements (SLAs)Formal agreements regarding the division of work between a company and its vendorsSLA can achieve facilitation and coordination by:
Defining the partners’ responsibilitiesProviding a framework for designing support servicesAllowing the company to retain as much control as possible over their own system
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Vendor and Software Selection (cont.)
Service level agreements (SLAs) (cont.)Four steps for establishing SLA
Defining levelsDividing computing responsibility at each levelDesigning the details of the service levelsImplementing service levels
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Site Management and Usage Analysis
Implementation of evaluation devicesCollecting and analyzing statistics
Hits per pageviewWhat can you get from pageviews
Pageviews by time bucket (time slot)Pageviews by customer logging statusPageviews by referrerPageviews by visitor’s hardware platform, OS, browser Pageviews by visitor’s host
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Site Management andUsage Analysis (cont.)
Usability: the measure of quality of a user’s experience when interacting with a product or system
Ease of learningEfficiency of useMemorabilityError frequency and severitySubjective satisfaction
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Site Management andUsage Analysis (cont.)
E-commerce management toolsPatrol for e-business management
Measures Web response timeFirewall administrationApplication servers:
Patrol for MicrosoftOpen marketNetscape
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Site Management andUsage Analysis (cont.)
E-commerce management tools (cont.)MainView for e-business management
Manages mainframe-based EC applicationsMonitors mainframe network connectionsSystems administration
Service assurance center for e-business—methodology, products, and services designed to optimize performance and availability of business applications
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Process of Storefront Development
Issues to be addressed before choosing the proper solution include:
CustomersMerchandising(kind of products)Sales servicePromotionTransaction processingMarketing data and analysisBranding
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Process of Storefront Development (cont.)
Availability and fast loading Simplicity of site structureUse of shopping cartGood navigationGlobalizationMaximizing ways to order and pay
Establishing credibilityOffering personalized servicePre- and post sales supportRealistic pricing
Design guidelines