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

e-commerce
business. technology. society.
Kenneth C. Laudon
Carol Guercio Traver
Building an E-commerce Presence:
Web Sites, Mobile Sites, and AppsWeb Sites, Mobile Sites, and Apps
eighth edition
eighth edition
Copyright © 2012 Pearson Education
Chapter 3
1

Class Discussion
Tommy Hilfiger Right-Sizes Its Web Store
What are the factors you should take into account
when sizing a Web site’s infrastructure?when sizing a Web site’s infrastructure?
Why are peak times an important factor to
consider?
What reasons were behind Hilfiger’s choice of ATG
for its Web site solution?
How can operators of smaller sites deal with the
right-sizing issue?
Learning Objectives
Explain the process that should be followed in building an e-
commerce Web site
Describe the major issues surrounding the decision to
outsource site development and/or hosting
Identify and understand the major considerations involved in
choosing Web server and e-commerce merchant server
software
Understand the issues involved in choosing the most
appropriate hardware for an e-commerce siteappropriate hardware for an e-commerce site
Identify additional tools that can improve Web site
performance
Understand the important considerations involved in
developing a mobile Web site and building mobile applications
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Copyright © 2012 Pearson EducationCopyright © 2012 Pearson Education
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# Web servers, # CPUs/server, DB server size, NW speed to Internet
To keep customers satisfied with site response
Buy Web hosting services, hire local professional designer/developer,
do everything yourself
2

Building an E-commerce Site:
A Systematic Approach
Most important managementMost important management
challenges:
Pieces of the Site-Building Puzzle
Main areas where you will need to
make decisions:
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Developing a clear understanding of business
objectives
Knowing how to choose the right technology to
achieve those objectives
Human resources and organizational
capabilities
Creating team with skill set needed to build and
manage a successful sitemanage a successful site
Hardware/ software
Telecommunications
Site design
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Pieces of the E-Commerce Site-Building Puzzle
The Systems Development Life Cycle
Methodology for understanding
business objectives of a system and
designing an appropriate solution
Five major steps:
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1. Systems analysis/ planning1. Systems analysis/ planning
2. Systems design
3. Building the system
4. Testing
5. Implementation
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Web Site Systems Development Life Cycle
Figure 3.2, Page 185
System Analysis/Planning
Business objectives:
System functionalities:
Information requirements:
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List of capabilities you want your site to have
List of information system capabilities needed
to achieve business objectivesto achieve business objectives
Information elements that system must
produce in order to achieve business objectives
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Table 3.1, Page 186
Systems Design:
Hardware and Software Platforms
System design specification:
Two components of system design:
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Description of main components of a system
and their relationship to one another
Logical design
Data flow diagrams, processing functions, databases
Physical design
Translates from logical design into physical
components (HW, SW, link capacity)
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Logical Design for a Simple Web Site
Figure 3.3 (a), Page 188
Physical Design for a Simple Web Site
Figure 3.3 (b), Page 188
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7

Build/Host Your Own vs. Outsourcing
Outsourcing: Hiring vendors to provide
services involved in building site
Build own vs. outsourcing:
Host own vs. outsourcing
Choices in Building and Hosting
Figure 3.4 Page 189
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Build your own requires team with diverse skill set; choice of
software tools; both risks and possible benefits
: Hosting company responsible for ensuring site is
accessible 24/ 7, for monthly fee
: Firm purchases or leases Web server (with control
over its operation), but server is located at vendor’s facility
Hosting
Co-location
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Cheapest and
simplest, but
limited “look and
feel” and
functionality
Economical but most
difficult, achieve
desired “look and feel”
and functionality, but
most time consuming
Most expensive, but
achieve desired “look
and feel” and
functionality, and
less time consuming
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Testing, Implementation, and
Maintenance
Testing
Implementation and maintenance:Implementation and maintenance:
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Unit testing
System testing
Acceptance testing by key personnel in different
departments
Maintenance is ongoing
Need continual checking, testing, and repair
Maintenance costs: Similar to development costs
Benchmarking : Comparing site to competitors in
terms of response speed, quality of layout, and design
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Factors in Web Site Optimization
Web Site Budgets
From $5,000 to millions of dollars/year
Components of budget:
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System maintenance
System development
Content design and developmentContent design and development
Hardware
Telecommunications
Software
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Components of a Web Site Budget
Simple vs. Multi-tiered
Web Site Architecture
System architecture
Two-tier
Multi-tier
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Arrangement of software, machinery, and tasks in an
information system needed to achieve a specific functionality
Web server responds to requests for Web pages and
Database server provides backend data storageDatabase server provides backend data storage
Web server is linked to
Middle-tier layer – a series of application servers performing
specific tasks, and also is linked to
Backend layer of existing corporate systems and legacy
databases
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Two-Tier E-commerce Architecture
Figure 3.9(a), Page 199
Multi-tier E-commerce Architecture
Figure 3.9(b), Page 199
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13

Web Server Software
All e-commerce sites require basic Web
server software to answer HTTP requests
from customersfrom customers
Apache
Microsoft’s Internet Information Server (IIS)
Advantages of Each Web Server Software
Choice of Web server software has no
effect on the look of Web pages
delivered to customers
Advantages
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Leading Web server software (66% of market)
Works with UNIX, Linux Oss (and Windows)
Second major Web server software (16% of
market)
Windows-based
Microsoft’s development suite: integrated,Microsoft’s development suite: integrated,
powerful, and easy to use
Unix’s suite: exceptionally reliable and stable,
and supported by worldwide open software
community
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Table 3.3, Page 200
Site Management Tools
Basic site management tools
Third-party software for advanced
managementmanagement
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Included in all Web servers, e.g.,
Verify that links on pages are still valid
Identify orphan files
Monitor customer purchases, marketing
campaign effectiveness, keeping track of
standard hit counts and page visit info, etc.
E.g., WebTrends Analytics 10, Google Analytics
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Dynamic Page Generation Tools
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
Dynamic page generation:Dynamic page generation:
Common tools: CGI, ASP, JSP, ODBC
Advantages
Application Servers
Web application servers:
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Contents of Web page stored as objects in database and fetched
when needed
Lowers menu costs: costs for changing product descriptions and
prices
Permits easy online market segmentation: can sell same product to
different markets
Enables cost-free price discrimination:can sell same product to
different customers at different prices
Enables Web content management system (WCMS)
Provide specific business functionality required
for a Web site
Type of middleware
Isolate business applications from Web servers and
databasesdatabases
Single-function applications being replaced by
integrated software tools that combine all
functionality needed for e-commerce site
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Table 3.4, Page 204
E-commerce Merchant Server Software
Provides basic functionality for online salesn
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Online catalog
List of products available on Web site
Shopping cart
Allows shoppers to set aside, review, edit selections,
and then make purchaseand then make purchase
Credit card processing
Typically works in conjunction with shopping cart
Verifies card and puts through credit to company’s
account at checkout
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Merchant Server Software Packages
Offer integrated environment that includes
most of functionality needed
Key factors in selecting a packageKey factors in selecting a package
Building Your Own E-commerce Site
Options for small firms
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Functionality
Support for different business models
Business process modelingtools
Visualsite management and reporting
Performance and scalability
Connectivityto existing business systems
Compliance with standards
Globaland multiculturalcapability
Localsales tax and shipping rules
Hosted e-commerce sites, e.g., Yahoo’s
Merchant Solutions, bigstep.com,
entrabase.com, tripod.com, homestead.com
Site building tools
E-commerce templates
Open-source merchant server software
Enables you to build truly custom sites
Requires programmer with expertise, time
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Choosing the Hardware for an
E-commerce Site
Hardware platform:
Objective:
Important to understand the factors that
affect speed, capacity, and scalability of a site
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Underlying computing equipment that system uses to
achieve e-commerce functionality
Enough platform capacity to meet peak demand
without wasting money
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Right-Sizing Your Hardware Platform:
The Demand Side
Demand is the most important factor
affecting speed of siteaffecting speed of site
Factors in overall demand:
Table 3.7, Page 209
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Number of simultaneous users in peak periods
Nature of customer requests (user profile)
Type of content (dynamic vs. static Web pages)
Required security
Number of items in inventory
Number of page requests
Speed of legacy applications
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Degradation in Performance as
Number of Users Increases—Resource Utilization
Figure 3.11(a), Page 211
Degradation in Performance as
Number of Users Increases—Number of Connections
Figure 3.11(b), Page 211
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Capacity of Static Page Web Servers
The Relationship of Bandwidth to Hits
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SOURCE: IBM, 2003.

Right-Sizing Your Hardware Platform:
The Supply Side
Scalability:
Ways to scale hardware:
Table 3.8, Page 213
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Ability of site to increase in size as demand
warrantswarrants
Vertically
Increase processing power of individual components
Horizontally
Employ multiple computers to share workload
Improve processing architecture
Combine vertical and horizontal scaling and using artful
design decisions
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Vertically Scaling a System
Horizontally Scaling a System
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Table 3.9, Page 215
Other E-commerce Site Tools
Web site design: Basic business
considerations
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Enabling customers to find and buy what they need
75% of users say they would not revisit a Web site that
they found annoying to use
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Table 3.10, Page 216
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Tools for Web site optimization
Optimization:
Search engine placement
Tools for Interactivity and
Active Content
Web 2.0 design elements:
CGI (Common Gateway Interface)CGI (Common Gateway Interface)
ASP (Active Server Pages)
Java, JSP, and JavaScript
ActiveX and VBScript
ColdFusion
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How to attract lots of people to your site
Metatags,titles, content – use keywords that accuratelyMetatags,titles, content – use keywords that accurately
describe what you sell or do
Identify market niches, localize site – be more specific, e.g.,
“Victorian jewelry,” to attract small, specific groups who are
intensely interested in period jewelry
Offer expertise – white papers, industry analyses, FAQpages
to build confidence on users
Links – encourage other sites to link to your site; list your
site with Yahoo Directory; Build Facebook page for firm
Search engine ads – choose your keywords and buy direct
exposure on search engines
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”)
Widgets: Small pre-built chunk of code that executes
automatically in an HTMLWeb page, e.g., weather, news
headlines, clocks, calendars
Mashups: Pull functionality/ data from one program and
include it in another, e.g., Google Maps mashups
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Personalization Tools
Personalization
Customization
Cookies:
The Information Policy Set
Privacy policy
Accessibility rulesAccessibility rules
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Ability to treat people based on personal
qualities and prior history with sitequalities and prior history with site
Ability to change the product to better fit the
needs of the customer
Primary method to achieve personalization
Set of public statements declaring how site will
treat customers’personal information that is
gathered by site
Set of design objectives that ensure disabled
users can affectively access site
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Developing a Mobile Web Presence
Three types of mobile e-commerce
software
Planning and building mobile presence
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Mobile Web site
Mobile Web app
Native app
As with regular Web site, use systems
analysis/ design to identify unique and specific
business objectives
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Developing a Mobile Web Presence
Design considerations
Performance and cost
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Platform constraints: Smartphone/ tablet
Mobile Web site:
Least expensive
Mobile app:
Can utilize browser API
Native app:
Most expensive; requires more programming
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03 Building an E-commerce Presence: Web Sites, Mobile Sites, and Apps slides

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