Chapter 4 – Building an E-Commerce Presence Essay

question

business models
answer

Portal, e-tailer, content provider, transaction broker, market creator, service provider, community provider
question

revenue models
answer

Advertising, subscriptions, transaction fees, sales, and affiliate revenue.
question

how do you determine the target audience?
answer

1. Demographics Age, gender, income, location 2. Behavior patterns (lifestyle) 3. Consumption patterns (purchasing habits) 4. Digital usage patterns 5. Content creation patterns (blogs, FB) 6. Buyer personas
question

How do you characterize the marketplace?
answer

Via: 1. demographics 2. size, growth, changes 3. structure: competitors, suppliers, substitutes 4. where the content is coming from (static vs dynamic)
question

How can you imagine your e-commerce presence?
answer

1. Know yourself – SWOT Analysis 2. Develop an EC presence map 3. Develop a timeline: milestones
question

How much does EC cost?
answer

simple web site: up to $5K small web start-up: $25-50K large corporate site: $100K – millions
question

SWOT
answer

Strengths Weaknesses Opps Threats
question

Type of presence:
answer

website e-mail social media offline media
question

web sites: platform
answer

traditional mobile tablet
question

web sites: activity
answer

search display affiliates sponsorships
question

e-mail: platform
answer

internal lists purchased lists
question

e-mail: activity
answer

newsletters updates sales
question

social media: platform
answer

FB Twitter Blogs
question

social media: activity
answer

conversation engagement sharing advice
question

offline media: platform
answer

print TV & radio
question

offline media: activity
answer

education exposure branding
question

most important mgt challenges in building a successful e-commerce site are:
answer

1. developing a clear understanding of bus objectives Req you to: build a plan for developing your firm’s site 2. knowing how to choose the right technology to achieve those objectives Req you to: understand some of the basic elements of EC infrastructure
question

areas where you need to make decisions in building a site
answer

1. HR & org capabilities – creating a team that has the skill set to build and manage a successful site 2. hardware 3. software 4. telecomm 5. site design
question

systems development life cycle
answer

methodology for understanding bus objectives of a sys and designing an approp soln
question

5 steps of SDLC
answer

1. Systems analysis/planning 2. systems design 3. Building the system 4. Testing 5. Implementation
question

web site systems development life cycle
answer

1. Systems Analysis/Planning 2. Systems Design 3. Building the System 4. Testing 5. Implementation System Delivery
question

Web site systems development best practices
answer

1. Continuous availability 99%+ 2. Design for scalability 3. Build in mgt for end-to-end delivery 4. Plan for growth 5. Design pages for high-speed performance 6. Understand and optimize workload on system
question

What are the 3 components of system analysis?
answer

1. business objectives 2. system functionality 3. information requirements
question

business objectives
answer

list of capabilities you want your site to have
question

system fxnalities
answer

List of IS capabilities needed to achieve business objectives
question

information requirements
answer

Info elements that system must produce to achieve bus objectives
question

What are the 9 basic business objectives?
answer

1. Display goods 2. Provide product info (content) 3. Personalize/customize product 4. Engage customers in conversations 5. Execute a transaxn 6. Accumulate customer info 7. Provide after-sale customer support 8. Coordinate marketing/advertising 9. Understand marketing effectiveness 10. Provide prodxn + supplier links
question

system design specification
answer

Description of main components of a system and their relationship to one another
question

2 components of sys design
answer

logical and physical
question

logical and physical design are all on paper!!!
answer

true.
question

logical design
answer

Data flow diagrams processing fxns databases
question

physical design
answer

1. translates logical –> physical components 2. Specifies actual physical, software components, models, etc.
question

outsourcing
answer

Hiring vendors to provide services involved in building site
question

Build own vs outsourcing
answer

Build your own requires team with diverse skill set; choice of software tools; both risks and possible benefits
question

Host own vs outsourcing: hosting
answer

Hosting company responsible for ensuring site is accessible 24/7, for monthly fee
question

host own vs outsourcing: co-location
answer

Firm purchases or leases Web server (with total control over its operation), but server is located at vendor’s facility
question

3 Types of testing
answer

unit testing system testing acceptance testing
question

unit testing
answer

involves testing the site’s program modules one at a time
question

system testing
answer

involves testing the site as a whole, in a way the typical user will use the site
question

acceptance testing
answer

verifies that the business objectives of the system as originally conceived are in fact working
question

benchmarking
answer

Comparing site to competitors in terms of response speed, quality of layout, and design
question

Costs of maintenance parallel to
answer

development costs
question

t/f: maintenance is ongoing
answer

true
question

factors in web site optimization:
answer

1. page generation 2. page delivery 3. page content Purpose of website is to deliver content to customers and to complete transaxns. The faster + more reliably this is met, the more effective the web site
question

page generation
answer

server response time device based accelerators efficient resource allocation resource utilization thresholds monitoring site performance
question

page delivery
answer

content delivery networks edge catching bandwidth
question

page content
answer

optimize html & images site architecture efficient page style
question

system architecture
answer

Arrangement of software, machinery, and tasks in an information system needed to achieve a specific functionality
question

2-Tier architecture
answer

Web server and database server
question

multi-tier architecture
answer

Web application servers Backend, legacy databases
question

all EC sites require basic web server software to answer HTTP requests from customers
answer

TRUE
question

Apache
answer

leading web server software (54% of mkt) Works only with UNIX, LINUX OSs
question

Microsoft’s Internet Info Server (IIS)
answer

2nd major web server software (25% of mkt) Windows based
question

Basic Fxnality Provided by Web Servers
answer

1. Processesing of HTTP requests 2. Security services (secure sockets layer) 3. File transfer protocol 4. Search engine 5. Data capture 6. E-mail 7. Site mgt tools
question

Basic site mgt tools
answer

included in all web servers verify that links on pages are still valid identify orphan files
question

3rd party software and services for advanced site mgt
answer

monitor customer purchases, mkting campaign effectiveness ex: WebTrends Analytics 10, Google Analytics
question

Dynamic page generation
answer

Contents of Web page stored as objects in db, rather than being hard-coded in HTML. When the user requests a Web page, the contents for that page are then fetched from the db
question

Common dynamic page gen tools:
answer

CGI = Common Gateway Interface ASP = Active Server Pages JSP = Java Server Pages
question

advantages of dynamic page gen tools
answer

1. lowers menu costs (costs incurred by merchants for changing prod dx + prices) 2. permits easy online mkt segmentation (ability to sell same product to diff mkts) 3. enables cost-free price discrimination (ability to sell the same product to diff customers @ diff prices) 4. enables web content sys (WCMS)
question

web app servers provide…
answer

specific business fxnality req for a website
question

application servers are…
answer

kind of middleware software that provides the glue connecting trad’l corporate systems to the customer as well as all the fxnality needed to conduct EC
question

2 types of app servers
answer

1. isolated business apps (from web servers + DBs) 2. single-fxn apps (which are increasingly being replaced by integrated software tools that combine all fxnality needed for EC site)
question

Fxns of app servers
answer

Do I Need to know this???
question

EC merchant server software provides…
answer

provides basic fxnality for online sales: -online catalog -shopping cart -credit card processing
question

merchant server software packages (EC suites) offer
answer

integrated environment with most of functionality needed
question

EC merchant services
answer

ex: Yahoo’s Small Business Merchant Solns
question

Open source web building tools
answer

ex: Apache web server, MySQL, PHP, PERL
question

key factors in selecting a package:
answer

-Fxnality -Support for diff business models -Bus process modeling tools -Visual site mgt + reporting -Performance + scalability -Connectivity to existing bus systems -Compliance with standards -Global + multicultural capability -Local sales tax + shipping rules
question

Hardware platform (for EC site)
answer

refers to all underlying computer equipment that system uses to achieve EC fxnality
question

Objective of choosing the hardware for an EC site:
answer

have enough platform capacity to meet peak demand but not so much that you waste money
question

Important to understand the different factors that affect 1, 2, 3 of a site
answer

1. speed 2. capacity 3. scalability
question

the most important factor affecting the speed of your site is…
answer

the demand that customers put on the site
question

Factors involved in overall demand:
answer

1. # of simultaneous users in peak periods 2. nature of customer requests (user profile) 3. type of content (dynamic vs static web pages) 4. req’d security 5. # of items in inventory 6. # of page requests 7. speed of legacy apps
question

scalability
answer

refers to ability of site to increase in size as demand warrants
question

ways to scale hardware:
answer

1. vertically – increase processing power of indiv components 2. horizontally – employ multiple computers to share workload 3. improve processing architecture of site
question

basic business considerations for web site design
answer

need design guidelines and software tools that can cost-effectively achieve req’d bus fxnality *enabling customers to find what they need, make purchase + leave
question

___% users say they would not revisit a web site that they found annoying to use
answer

75
question

widgets
answer

small pre-built chunk of code that executes automatically in an HTML web page
question

Mashups
answer

Pull fxnality/data from one program and include it in another
question

CGI (Common Gateway Interface)
answer

standards for cx b/w browser + program running on a server that allows for interaxn b/w user + server
question

ASP (Active server pages)
answer

Used to build dynamic pages with Microsoft’s IIS
question

Java
answer

Used to create interactivity and active content on client computer
question

JSP (Java Server Pages)
answer

Similar to CGI and ASP; allows developers to use HTML, JSP scripts, and Java to dynamically generate web pages
question

Javascript
answer

used to control objects on a web page and handle interaxns with browser
question

activeX
answer

invented by microsoft to compete with Java
question

VBScript
answer

invented by microsoft to compete with Javascript
question

ColdFUsion
answer

integrated server-side environment for developing interactive web apps
question

personalization
answer

ability to treat ppl based on their personal qualities and prior history with your site
question

customization
answer

ability to change the product to better fit then eeds of the customer
question

cookies
answer

small text file placed on the user’s client computer that can contain any kind of info about the customer (customer ID, purchases at the site) *PRIMARY METHOD FOR ACHIEVING PERSONALIZATION + CUSTOMIZATION)
question

privacy policy
answer

set of public statements declaring how site will treat customers’ personal info that is gathered by the site
question

accessibility rules
answer

set of design objectives that ensure disabled users can affectively access site
question

3 types of m-commerce software
answer

1. mobile web site (responsive web design) 2. Mobile web app 3. native app
question

planning + building mobile presence uses…
answer

systems analysis/design to identify unique and specific bus objectives
question

Most unique features that must be taken into account when designing a mobile web presence
answer

1. Hardware *smaller, more resource constraints in data storage +processing power 2. Connectivity *constrained by slower connection speeds 3. Displays *smaller + req simplicification (some are not good in sunlight either) 4. Interface *touch screen technology introduces new interaxn routines diff from tradl mouse and keyboard (not good data entry tool but can be a good navigational tool)
question

design considerations
answer

platform constraints: smartphone/tablet
question

performance + cost
answer

1. mobile web site (least expensive) 2. mobile app (can use browser API) 3. native app (most expensive, requires more programming)

Get instant access to
all materials

Become a Member