ec workshop presentation

Views:
 
Category: Education
     
 

Presentation Description

No description available.

Comments

By: Gramj (117 month(s) ago)

Though this presentation is targeted at online marketing businesses, there are many organizations like locum tenens general practice placement organizations which use predominantly online forums for positions. The portions regarding website design and graphics were particularly helpful and can be applied to almost any business venue. http://locumsgig.com

By: yoursachi88 (121 month(s) ago)

thanx sir for this effective presentation ... i want to download it for further reading. . will you please allow me to download it..

Presentation Transcript

Workshop in Electronic Commerce: 

Workshop in Electronic Commerce Presented by: Dr. Kelly Burke – UH Hilo School of Business Dr. Eric Jeschke – UH Hilo Computer Science Department Funded by: Department of Business, Economic Development, and Tourism University of Hawaii Hilo School of Business

Workshop in Electronic Commerce: 

Workshop in Electronic Commerce Objectives Business Problem EC Models Facts and Forces EC Levels The WWW Planning Getting Started Site Design Security Marketing Payment Infrastructure Site Performance Wrap Up

Workshop Objectives: 

Workshop Objectives You are planning to establish an eBusiness in the future Whether you intend to: Plan and develop the site yourself Have an employee plan and develop the site Plan the site and have an ISP/Host develop it Have an ISP/Host plan and develop the site You need to understand what Electronic Commerce is, how it works, how to plan and manage it.

Workshop Objectives: 

Workshop Objectives What is EC? What forms can EC take? How can EC help? How do I get started? How do I build a simple web page? What is involved in building a full web site?

Workshop Objectives: 

Workshop Objectives What are my options for doing E-Commerce? What software and hardware do I need? What makes a good web site? How do I market my site? What concerns should I have for security? How can I settle transaction payment? What future issues should I be aware of?

Defining Electronic Commerce: 

Defining Electronic Commerce Use of electronic communications facilities to conduct any part of a business (internal or external) transaction.

Business Problem: 

Business Problem The world is attracted to the possibility of doing EC Media frenzy (business publications) Appears easy (seems like every one has a computer) Appears glamorous (look at the tech IPOs) Everyone is doing it / we can’t afford to miss out!! Opportunity is SEDUCTIVE

Business Problem: 

Business Problem Gartner group advises online companies to beware Within 2 years, 95 % of online dot.coms will fail e.g., boo.com e-Toys layoffs Misuse or misreading of opportunity can be costly e.g., Nor-Cal EMS experience – long term “ill will” Lesson: opportunity without understanding and prioritization of objectives = problem Implementation and Integration with business processes ARE King e.g., Northwest and United Airlines fare wars

Models and Applications for E-Commerce: 

Models and Applications for E-Commerce

Models of Electronic Commerce: 

Models of Electronic Commerce Inter-organizational (B2B) EDI, supply-chain interaction, etc. Intra-organizational (B2E or BinB) E-portals, Lotus notes, etc. Business-to-consumer (B2C) Direct marketing, e-malls, etc.

Models of Electronic Commerce: 

Models of Electronic Commerce Consumer-to-consumer, peer-to-peer (C2C, P2P) Auctions, electronic flea markets, etc. E-marketplaces Exchanges Non-business On-line communities (Geocities), news groups

Taxonomy of Applied Business Models: 

Taxonomy of Applied Business Models Brokerage (http://globalsources.com/) Advertising (http://www.altavista.com/) Infomediary (http://www.job-search-engine.com/) Merchant (http://www.etoys.com/) Manufacturer (http://www.hp.com/) Affiliate (http://s1.amazon.com/) Community (http://geocities.yahoo.com/) Subscription (http://prodigy.com/) Utility (http://prodigy.com/)

E-Business Initiatives: 

E-Business Initiatives E-Commerce— selling more goods via the Web E-care for customers— providing all kinds of customer support on-line E-care for business partners— dedicated services providing faster, better information for these important groups E-care for employees— improving their effectiveness by making the right information and services available to them

E-Business Initiatives: 

E-procurement— working closely with customers and suppliers to improve the tendering process and to better administer the huge number of transactions involved E-marketing communications— using the Internet to better communicate marketing stance E-Business Initiatives

Electronic Commerce: Planning Framework: 

Electronic Commerce: Planning Framework Management Strategy, planning, resources, monitoring Infrastructure Business services, information transfer, content, networks, interfaces Environmental constituents People, policies, technical standards, stakeholder organizations Business applications Catalogs, banking, procurement, auctions

Planning Your EC Path: Levels* of E-Commerce Development: 

Planning Your EC Path: Levels* of E-Commerce Development Minimal online presence On-line catalog On-line transactions Automated value chain Market site Super market site *Adapted from www.dotcomadvisor.com – 2000

Slide17: 

Motivation General pressure to “get on the net” Promote business entity Information Financial HR Technology issues Simple, In-sourced Level I E-Commerce Development: Minimal *Adapted from www.dotcomadvisor.com – 2000

Slide18: 

Level I E-Commerce Development: Minimal *Adapted from www.dotcomadvisor.com – 2000

Slide19: 

Motivation Pressure from customers and competitors Information Product Service Technology issues Searching, maintenance (e.g., changing product information) Customer personalization On-line activity tracking Level II E-Commerce Development: On-line Catalog *Adapted from www.dotcomadvisor.com – 2000

Slide20: 

Level II E-Commerce Development: On-line Catalog *Adapted from www.dotcomadvisor.com – 2000

Slide21: 

Motivation Exploit Internet as new channel of distribution Information Catalog / order Technology issues Interactivity Integration of core businesses functions (e.g., sales and accounting) Business issues Order fulfillment capacity Building site traffic Level III E-Commerce Development: On-line Transactions *Adapted from www.dotcomadvisor.com – 2000

Slide22: 

Level III E-Commerce Development: On-line Transactions *Adapted from www.dotcomadvisor.com – 2000

Slide23: 

Motivation Customers and suppliers “want” more info Reduce cycle times and costs Information Manufacturing, purchasing, shipping Technology issues Systems integration Outsourcing Business issues Sharing operational information with external entities Level IV E-Commerce Development: Automated Value Chain *Adapted from www.dotcomadvisor.com – 2000

Slide24: 

Level IV E-Commerce Development: Automated Value Chain *Adapted from www.dotcomadvisor.com – 2000

Slide25: 

Motivation Product comparisons, e.g., http://www.amazon.com Information Competitor’s products/services Third-party product/service comparisons Technology issues Handling traffic loads Monitoring/mining traffic Business issues Corporate identity Objectivity of product comparisons Level V E-Commerce Development: Market Site *Adapted from www.dotcomadvisor.com – 2000

Slide26: 

Level V E-Commerce Development: Market Site Competitors

Slide27: 

Motivation Become the “preferred” one-stop shop (i.e., marketplace), e.g., http://www.sabre.com/ Information Complimentary products/services Technology issues Integrating associates systems/information Business issues Managing customer AND supplier suggestions and requirements Level VI E-Commerce Development: Super Market Site *Adapted from www.dotcomadvisor.com – 2000

Slide28: 

Level VI E-Commerce Development: Super Market Site

Facts and Forces in E-Commerce: 

Facts and Forces in E-Commerce

Benefits of E-Commerce: 

Benefits of E-Commerce Increase sales Distributed market exposure Target narrow segments Create virtual communities which become targets Reduce costs Sales inquiries Price quotes Product availability Enhance product value Benefits work both ways – selling or buying

Disadvantages of E-Commerce: 

Disadvantages of E-Commerce High ticket and perishables don’t work Costs / benefits can be hard to quantify Difficult to integrate with existing databases Fast pace of technology change Potential legal issues

Big Business Survey Results: 

Big Business Survey Results Have a systematic, strategic approach to internet-based initiatives with top-level executive involvement (69% ) Have full time units dedicated to e-business development (47%) Extent of e-business functionality isn’t beyond basic “brochure ware” (25%)

Big Business Survey Results: 

Big Business Survey Results E-business accounts for less than 5% of revenues (79%) Able to process payments online (25%) Creation of a convenient buying experience for customers on the Web is “extremely important” (80%)

On-line Transaction Completion : 

On-line Transaction Completion

Reasons for Abandoning On-line Purchases: 

Reasons for Abandoning On-line Purchases

Other Common Site Problems: 

Other Common Site Problems Navigation problem Finding information cdw.com Site too slow

Forces Driving Online C2C Shopping: 

Forces Driving Online C2C Shopping Convenience (75%) Cost (38%) Context – opportunity to buy at right time and right place (e.g., from work when I am thinking about that book)

The Typical Online Customer: 

The Typical Online Customer Age: 30-49 Gender: Male Family status: Married with children Household annual income: $60,000 Amount spent online per year: $460 Source: Harris Interactive, Nielson Netratings

The Typical Online Customer: 

The Typical Online Customer Completed online transactions: 10 Online sessions per week: 6 Unique sites visited per week: 6 Average surfing session: 31 minutes Time per site per week: 32 minutes Time online per week: 3 hours, 8 minutes Source: Harris Interactive, Nielson Netratings

The WWW and How it Works for E-Commerce: 

The WWW and How it Works for E-Commerce

The “Big Picture” In EC: 

The “Big Picture” In EC WWW architecture How the web works Internet protocol URLs / domain names Internet communication

Slide42: 

Client (Browser) Web Server Commerce Server Product Database Shopping Cart Secure Transaction Server Dynamic Static Pages Pages Pages Pages

How the Web Works: Uniform Resource Locators: 

How the Web Works: Uniform Resource Locators Browsers differ in the way they are programmed But if WWW is to be useful to many – we need standard way to identify a resource Example: http://www.hawaii.edu:2074/~kburke/494/ch_3.ppt URLs specify: protocol (e.g. http) host name (e.g., www.hawaii.edu) connection port on host (e.g. 2074) path on host to resource (494/ch_3.ppt)

How the Web Works: The Internet Protocol: 

How the Web Works: The Internet Protocol TCP / IP protocol for communicating IP addressing Network Information Center allocates blocks Class Address Network part Host part A 18.155.32.5 18 155.32.5 B 128.171.12.237 128.171 12.237 C 192.66.12.56 192.66.12 56

How the Web Works: Domain Names: 

How the Web Works: Domain Names IP addresses are unfriendly Assign a human readable name to IP addresses Placed in a distributed, hierarchical, lookup system (DNS) Domains and Hosts - pahuleka.uhh.hawaii.edu Host || Domain || Host_name Org_name_1 Org_name_2 Org_type pahuleka uhh hawaii edu

How the Web Works: Protocols and Infrastructure: 

How the Web Works: Protocols and Infrastructure Messages versus Packets i.e., connection vs. connectionless

Slide47: 

Client (Browser) Web Server Commerce Server (Storefront) Product Database Shopping Cart Secure Transaction Server Dynamic Static Pages Pages Pages Pages Back to Hosting

Planning for E-Commerce: 

Planning for E-Commerce

Planning Your EC Path: 

Planning Your EC Path Identify your organizational objectives Want to increase effectiveness of salesperson’s time Identify ways EC can help achieve the objectives Permit customers to order online / salesperson can spend time showing new products Determine what resources are required Need: website, database, computer to process orders, trained user to process orders Sample planning checklist

Planning Your EC Path: 

Planning Your EC Path Plan the implementation Select implementation strategies - e.g., http://strategis.ic.gc.ca/SSG/ir01580e.html#implementation Outsource web site creation / maintenance, plan content, train users Determine how you will monitor EC results / performance Require periodic site reports from ISP, measure increase in new product sales

Planning Your EC Path: Levels of E-Commerce Development: 

Planning Your EC Path: Levels of E-Commerce Development Minimal online presence On-line catalog On-line transactions Automated value chain Market site Super market site

Getting Started in E-Commerce: 

Getting Started in E-Commerce

Getting Started: 

Getting Started Identify appropriate business model Make or buy? Do it in house or use a web site service provider? Connecting to the internet DSL, ISDN, Fractional T1 Register a domain name Domain names are easier than IP addresses Search on Network Solutions' WhoIs directory http://www.networksolutions.com/cgi-bin/whois/whois

Obtaining a Domain Name: 

Obtaining a Domain Name Domain names are handled by DNS registrars There are many web-based services for looking up names and/or registering them Most of the popular names are taken, many by “squatters” Registration of a name requires an annual fee and agreements with third parties for name service referral

Domain Names.: 

Domain Names. Once you’ve registered a name, you have first right of renewal, unless… Disputes are arbitrated by ICANN; most established trademark names and brands are recognized

Getting Started: 

Getting Started Components of the Firm’s Business Model Customer value Scope of products/services Price of value delivered Revenue sources Connected activities Implementation Capabilities Sustainability of advantage

Getting Started: 

Getting Started “Do-it-yourself” website services http://www.bigstep.com/ http://store.yahoo.com/ Hosting Understanding what “hosting” means and your alternatives? Architecture? Target market? Market research

What is Involved in Establishing a Web Site?: 

Web site considerations The services wanted How much your company can contribute to the site, from manpower to electronic content Time to design your site Time to create and program your site Extra fees for software development Fees for off-the-shelf applications tools The size of the site Training requirements Installation and server maintenance Programming On corporate site hosting vs. off-site Secure Server for financial transactions Your bandwidth needs Your server capacity needs Location of your server at the Web company or ISP company location What is Involved in Establishing a Web Site?

Getting Started: Web Hosting: 

Identify what you have resources and time to do Identify what will be done “outside” the firm Identify which external parties will be involved e.g., designer, ISP, web host? commerce provider? Identify how you will assess their performance Decision metrics – e.g., are they reliable? On-going performance metrics – e.g., is their “uptime” what they claim? Getting Started: Web Hosting

Getting Started: The Marketing Process: 

Getting Started: The Marketing Process

Getting Started: Market Research: 

Getting Started: Market Research Define problem / research objectives Develop research plan Collect information Analyze information Present findings

Getting Started: Market Research Resources: 

Getting Started: Market Research Resources AMA www.ama.org CommerceNet www.commerce.net National Trade Data Bank http://www.stat-usa.gov/tradtest.nsf CIA World Factbook www.odic.gov/cia/publications On-line user survey data from Georgia Tech http://www.gvu.gatech.edu/user_surveys/

Getting Started: Resources: 

Getting Started: Resources Hawaii State website: http://www.cochawaii.com/ Dept. of commerce : http://www.state.hi.us/dcca/ Registering your business: http://www.businessregistrations.com/home.html Chamber of commerce: http://www.cochawaii.com/ Small businesses SBA: http://www.sba.gov/ SBA PRO-Net (procurement network): http://www.pro-net.sba.gov/

Getting Started: Resources : 

Getting Started: Resources Various (legal, articles, research, policies, etc.) http://www.gtlaw.com.au/ecomm/ Federal government policy http://www.ecommerce.gov/ Description of eFed (federal govt. interagency procurement system) http://www.sewp.nasa.gov/edi/hanson9711.html

Web Site Design Issues in E-Commerce: 

Web Site Design Issues in E-Commerce

Web Site Design: 

Web Site Design Navigation Intuitive, predictable, consistent Longer pages - fewer links Site map - especially smaller sites (VISIBLE - TOP?) Category names/descriptions MUST be meaningful Searchability - perhaps for large sites BUT 50% more likely to find information if no search - why? Searching can be imprecise and frustrating Easy to “quit” Links and “tabs” on top http://www.businessweek.com

Web Site Design: 

Web Site Design Must distinguish between graphics design and web site design Graphics design: your business image Web site design: what’s on your site Don’t get these confused!

Graphic Design: 

Graphic Design Don’t be tempted to skimp on developing your online image-your web site is your online storefront! Best to hire out the design of the graphics and layout, even if you are editing the pages yourself Some graphics design companies do web design, some do not yet; it may not matter. Vector graphics allow you to scale images for your use throughout the business: on and offline

Web Site Design: 

Web Site Design Planning - layout, mapping Purpose of site on home page What’s new section Content should fit the customer Style guide For consistent content design -especially over time Feedback mechanism(s) Mailto, forms, request routing, auto responses

Designing it Yourself: 

Designing it Yourself KISS philosophy rules: make the design easy to navigate! Avoid clutter Avoid lots of graphics Avoid cutesy clip art Avoid lots of fonts Avoid long pages Provide site navigation tools

Web Site Design: 

Web Site Design Loading time!!! Pictures of some products but not others Interactivity Forms, object manipulation, applet running Error handling - inform user about Being able to find out more about a particular item by a link in the cart Instructions - ordering, interacting, feedback

Web Site Design: 

Web Site Design Backgrounds - readability and colors Too much white space perceived as “complex” Be aware of screen resolution and position ISPs and design gurus use Unix workstations with monster monitors Typical users have 15” monitors Design for a “lowest common denominator” monitor

Web Site Design: 

Web Site Design Place items in frame to: Keep them on-screen and To make display more effective best banners on Netscape got 4% click-throughs Placed in frames generated 30% click-throughs e.g., Use of tables can simulate frames e.g., http://www.businessweek.com Examples of bad design e.g., http://www.webpagesthatsuck.com

Web Content Design: 

Web Content Design Content takes many shapes Will change dramatically More robust, comprehensive, and usable medium Challenges in developing a successful online storefront Choosing the right software solution for your site 3 options build your own software purchase a commercial software product rent from a Web host

Security Issues in E-Commerce: 

Security Issues in E-Commerce

Security Issues: 

Security Issues To maintain a successful online business, you MUST Secure your E-Commerce transactions Secure your servers and data Formulate, post and follow a customer privacy policy

Securing Transactions: 

Securing Transactions Need to secure communications between client (customer at a web browser) and server (your web site and beyond) What kinds of data need securing? Credit card data (card number, expiration date, etc.) Personal data (phone #, address, etc.) Order data Etc.

Secure Communications Mean: 

Secure Communications Mean Authentication: want to make sure that each side is actually dealing with the right host and not some impostor or "man-in-the-middle" Integrity: want to make sure that data is not altered during transit in any way Privacy: want to ensure that data is not snooped by a third party in transit Problem: how to achieve this on the insecure Internet?

Encryption: 

Encryption A secret "key" is used to encrypt ("scramble") and decrypt ("unscramble") any data passed between browser and server. The encryption technique and key are chosen so that it would be computationally infeasible to decipher the data without the key (i.e. break the code).

Encryption: 

If the key is kept secret, the "right" encrypted data can only be generated by the browser or the server. Encrypted data is meaningless to snoopers and cannot be altered without detection. This provides authentication, integrity and privacy. Encryption

Public Key Cryptography: 

Public Key Cryptography Message Digital Signature

Key Distribution Problem: 

Key Distribution Problem Problem: how to get the key to the other party over an insecure network like the Internet? Answer: public key encryption PKE uses two keys: whichever one is used to encrypt, the other one must be used to decrypt Typically, one key is made public, the other is kept secret. How does this help?

Session Keys: 

Session Keys If the browser can get the public key of the merchant, it could encrypt a one-time session key and send it over. Then the two sides could use the shared session key to encrypt and communicate securely. To get the merchant's public key, the server could send it over to the browser when it first connects. Problem: how does the browser know if it has the real public key and not a fraudulent one?

Digital Signatures: 

Digital Signatures A merchant's public key can be digitally signed. A digital signature is a token (a little bit of data) attached to the end of the key. Using encryption technology, it is possible to verify the authenticity of the key by examining the "signature". If you trust the key signer, you can trust that the key is valid. Who can be trusted to sign (vouch for) a merchant's public key?

Certificate Authority: 

Certificate Authority A certificate authority is a trusted third party that is in the business of signing public keys. A key signed by a CA is called a digital certificate. A merchant purchases a certificate and puts it on his server. When a browser makes a connection the certificate is downloaded. The browser verifies the signature on the certificate and extracts the public key. The browser encrypts a session key and sends it to the server. Both sides can now securely communicate.

Digital Certificates: 

Digital Certificates Certificates are available from a number of certificate authorities. One of the first, and biggest, is Verisign (www.verisign.com) Certificates start at about $150 and go up from there, depending on the expected use of the certificate. A certificate is dated and is only good for a certain time period. After that date a browser will reject it. To keep current, a merchant will need to purchase new certificates just before the old ones expire.

Certificate: 

Certificate Identifying the holder of a public key (Key-Exchange) Issued by a trusted certificate authority (CA)

Securing Your Site: 

Securing Your Site Disable all nonessential services, programs and user accounts Use complex passwords and change them reasonably often Keep up with the latest security bulletins (CERT) and software updates

Securing Your Site: 

Monitor logs for suspicious activity Consider installing a firewall, monitoring software and/or secure communications software Have a periodic professional security audit Does your “Host” provide all of this? Securing Your Site

Customer Privacy: 

Customer Privacy What does your company do with the data it collects from customers? Does not release customer data outside the company, under any circumstances, except to legal authorities makes names, addresses, etc. available to selected partners and third parties sells customer data to marketers These are all valid policies! Need to be up front: formulate a privacy policy, post it on your web site and follow it !

Payments in E-Commerce: 

Payments in E-Commerce

Electronic Payment Protection: 

Electronic Payment Protection Secure Sockets layer (SSL) or Secure Electronic Transaction (SET) protocols Certification Authority (e.g., http://www.verisign.com)

Secure Electronic Transaction (SET) Protocol: 

Secure Electronic Transaction (SET) Protocol Cardholder, merchant, CA, payment gateway All entities have certificates Cardholder keeps a security certificate with them Either in their computer - not mobile - or In the form of an “electronic wallet”

Secure Electronic Transaction (SET) Protocol: 

Cardholder requests purchase from merchant Merchant requests from payment gateway: Payment authorization Payment capture Payment gateway obtains Authorization from card issuer Payment capture information Secure Electronic Transaction (SET) Protocol

Slide95: 

Entities of SET Protocol in Cyber Shopping 95

Secure Electronic Transaction (SET) Protocol: 

Secure Electronic Transaction (SET) Protocol Merchant sends payment capture request to CA CA verifies information with acquiring (merchant’s) bank Merchant receives settlement from acquiring bank

SET vs. SSL: 

SET vs. SSL Secure Electronic Transaction (SET) Secure Socket Layer (SSL)

Electronic Payment: 

Electronic Payment Debit cards Used in B2C Electronic funds transfer (EFT) / E-checks Electronic version of paper checking Combines certificates and signatures with payment Used in B2B ePay by Visa, SafeCheck (see www.echeck.org)

eCheck Process Flow: 

eCheck Process Flow

Electronic Payment: 

Electronic Payment Stored-value cards, e-cash (e.g., Mondex, CyberCoin, VisaCash) permit cost-effective “micropayments” mondex smart cards battery operated card readers swipe card value transferred to retailer’s terminal no authorization required

Electronic Payment: 

Electronic Payment Electronic wallet (Fujitsu, Mondex) can be used for Internet transaction settlement handheld terminal values are transferred from customer’s account to customer’s card or to merchant’s account via either the card or a Web connection can store values for different currencies http://www.mondex.com/

Electronic Payment: 

Electronic Payment Closed e-cash system Values recharged (transferred) only by bank VisaCash Open e-cash system Values can be transferred between cards Mondex eMail-grams Pay money to or receive money from anyone with email e.g., www.Paypal.com

Marketing Issues in E-Commerce: 

Marketing Issues in E-Commerce

Marketing Your Web Site: 

Marketing Your Web Site One-to-one marketing Customer service Banner ads Search engines

One-to-One Marketing: 

One-to-One Marketing Relationship marketing “Overt attempt of exchange partners to build a long term association, characterized by purposeful cooperation and mutual dependence on the development of social, as well as structural, bonds” “Treat different customers differently” Able to change the manner its products are configured or its service is delivered, based on the individual needs of individual customers

One-to-One Marketing: 

One-to-One Marketing Customer loyalty Purchase behavior One of the most significant contributors to profitability Increase profits; strengthen market position; become less sensitive to price competition; increase cross-selling success; save cost, etc. Real world examples 1-800-FLOWERS Amazon.com Federal Express (FedEx)

One-to-One Marketing: 

One-to-One Marketing Building and maintaining customer loyalty Maintain continuous interactions between consumers and business Make a commitment to provide all aspects of the business online Build different sites for different levels of customers Willing to invest capital, both human and financial, in the information systems, to insure continuous improvement in the supporting technology as it becomes available

One-to-One Marketing: 

One-to-One Marketing Building and maintaining customer loyalty Make a commitment to use the information collected about customers in an ethical manner Realistic managerial expectations in the payback period and cost recovery Set acceptable standards for response time in customer service (24-48 hours); Use intelligent agents to expedite and standardize responses whenever possible Ability to change and customize information and services quickly and inexpensively is a must

One-to-One Marketing: 

Customer service A new look and feel Install Web servers which allow each customer to create individual web pages that can be customized to record purchases and preferences Put the burden on the customer to treat a problem or inquiry and receive information bit by bit One-to-One Marketing

One-to-One Marketing: 

One-to-One Marketing Customer service Information can be directed to the customer efficiently Creation of a database which records purchases, problems, and requests is facilitated Information can now be traced and analyzed for immediate response If customer service options and solutions do not maintain the same level of excitement and interaction as the advertising and sales presentations, the level of intensity declines and the vendor runs the risk of losing customers

Implementing Customer Service in Cyberspace: 

Implementing Customer Service in Cyberspace Product Life Cycle Phase 1. Requirements : assisting the customer to determine needs Phase 2. Acquisition : helping the customer to acquire a product or service Phase 3. Ownership : supporting the customer on an ongoing basis Phase 4. Retirement : helping the client to dispose of a service or product

Implementing Customer Service in Cyberspace: 

Types of Customer Service Functions Answering customer inquires Providing technical and other information Letting customers track accounts or order status Allowing customers to customize and order online Implementing Customer Service in Cyberspace

Implementing Customer Service in Cyberspace: 

Implementing Customer Service in Cyberspace

Tools of Customer Service: 

Tools of Customer Service Personalized Web Pages Used to record purchases and preference Direct customized information to customers efficiently Chat Room Discuss issues with company experts; with other customers E-mail Disseminate product information, conduct customer inquiry correspondence FAQs Not customized, no personalized feeling, no contribution to relationship marketing

Tools of Customer Service: 

Tools of Customer Service Help Desks and Call Centers A comprehensive customer service entity EC vendors take care of customer service issues communicated through various contact channels Telewebs combines Web channels, such as automated e-mail reply, Web knowledge bases and portal-like self service with call center agents or field service personnel Internet a medium of instant gratification demand for both prompt replies and proactive alerts

Marketing Your Web Site: Banner Ads: 

Marketing Your Web Site: Banner Ads People don’t scroll sideways Get everything on one screen width Studies find the lower right corner to be most effective location for an ad http://www.webreference.com/dev/banners/ Placing banners last is more effective than first Placing banners top and bottom is more effective than just top

Marketing Your Web Site: 

Marketing Your Web Site Web malls Host sites and provide shopping “portals” e.g., http://store.yahoo.com/ Search engines Passive strategy – “meta” tags e.g., www.sba.gov Active strategy – submit site to search engines e.g., http://www.submitit.com/ E-mail list rental Opt-in mailing lists (direct marketing) e.g., http://www.netcreations.com/main?page=welcome

Publicizing your site: 

Publicizing your site Simply registering your domain name will not bring people to your “door” The ugly reality of search engines: pay to play How to get found in a billion web pages? Get mentioned on TV Use your “bricks” to promote your “clicks” Develop relationships with other online sites

Infrastructure Issues in E-Commerce: 

Infrastructure Issues in E-Commerce

Infrastructure Requirements: 

Infrastructure Requirements Internet service Site content Site Design Site / Commerce functionality Database

Slide121: 

Client (Browser) Web Server Commerce Server (Storefront) Product Database Shopping Cart Secure Transaction Server Dynamic Static Pages Pages Pages Pages Back to Hosting

Web Hosting Issues: 

Web Hosting Issues Bandwidth Capabilities and specifications Firewall system Wireless delivery Buy, rent, or lease Maintenance, upgrade, and service of the equipment

Developing E-Commerce Infrastructure: 

Developing E-Commerce Infrastructure Hosting the site Obtaining a domain name Graphics design and web site design Web site programming Secure transactions and purchasing

Hosting: 

Hosting Where will the site be hosted? Your premises Leased space at an ISP Rack mounted server at a professional hosting company Managed host at a hosting co. Custom outsourced site “Template” outsourced site (e.g. Yahoo storefront)

Hosting: Doing it Yourself: 

Hosting: Doing it Yourself Buy servers and network equipment and lease bandwidth (“pipes”) from Telco Advantages: Complete control over all aspects of site, including security, functionality, integration with existing business systems Cost savings once level of online commerce reaches a certain threshold Disadvantages: IT costs to manage equipment, systems Initial capital investment Physical infrastructure impact

Hosting: Lease Space at an ISP: 

Hosting: Lease Space at an ISP Rent space for your equipment to be hosted at an ISP Pay bulk bandwidth charges to ISP Advantages: Complete control over site Smaller start up expenses Disadvantages: Must manage your own systems, usually remotely Cost of purchasing equipment Harder to integrate with existing business systems

Hosting: Lease Equipment at Hosting Vendor: 

Hosting: Lease Equipment at Hosting Vendor Rent equipment at a professional hosting company Pay bulk bandwidth charges (sometimes rolled into hosting package) Advantages: Aging equipment is not your problem Smaller start up costs Disadvantages: Must manage your own system

Hosting: Managed Host at Hosting Vendor: 

Hosting: Managed Host at Hosting Vendor Rent use of a system at a hosting vendor System is managed for you Can mix and match services (web, email, ordering, etc.) You are responsible for site content Advantages: System is managed for you You maintain control over site design, functionality Disadvantages: Ongoing expenses

Hosting: Custom Outsourced Site: 

Hosting: Custom Outsourced Site Outsource the development of the web site May be a different entity than hosting co. (e.g. consultant) Advantages: Custom designed site No web development or system management required on your part Disadvantages: Less control over costs

Hosting: Template Outsourced Site: 

Hosting: Template Outsourced Site Use pre-designed “templates” for building site from dot-coms catering to small business owners Advantages: Very low cost (some free!) Disadvantages: Cookie-cutter feel to sites Little control over site or design Customer service?

Web Programming: Implementing the Software Infrastructure: 

Web Programming: Implementing the Software Infrastructure Most E-Commerce sites are not a static collection of web pages, but dynamic interactive systems Need to develop the software infrastructure that drives the site: databases, business rules, secure ordering, web user interfaces, etc. Q: Do you need to interface your site to your existing IT infrastructure? Database?

Web Programming: Implementing the Software Infrastructure: 

Web Programming: Implementing the Software Infrastructure There are “turnkey” solutions for implementing some of this software infrastructure Unless you have a simple business, these probably won’t be satisfactory Reality check: custom software development takes time and money Programmers are not artists, and vice versa! Don’t hire programmers to write web pages and don’t hire webmasters to write sophisticated software. Don’t hire either one to design your corporate image!

Web Programming: Implementing the Software Infrastructure: 

Electronic storefront must contain: A merchant system or storefront that provides the merchant’s catalog with products, prices and promotions A transaction system for processing orders and payments and other aspects of the transaction A payment gateway that routes payments through existing financial systems primarily for the purpose of credit card authorization and settlement Web Programming: Implementing the Software Infrastructure

Web Programming: Implementing the Software Infrastructure: 

Web Programming: Implementing the Software Infrastructure Purchase a suite of software that claims to integrate storefront functions into a single box iCat Corp.’s Electronic Commerce Suite and Commerce Publisher Open Market’s Transact and LiveCommerce http://www.openmarket.com Microsoft Corp.’s Site Server Commerce Edition IBM Corp.’s Net. Commerce Pro Saqqara Systems’ StepSearch Professional

Web Programming: Implementing the Software Infrastructure: 

Electronic Commerce Suites Offer merchants greater flexibility, specialization, customization and integration in supporting complete front and back-office functionality Catalog Application Customer Management, Registration, Profiles, Service Order Capture, Completion Fulfillment Systems Payment Processing (SET & Purchase Order) Catalog Database Customer Database Order Database Payment Database Financial Network Web Browser Web Server Open Market E-Commerce Server Architecture Web Programming: Implementing the Software Infrastructure

Web Programming: Implementing the Software Infrastructure: 

Web Programming: Implementing the Software Infrastructure Making a Web catalog into a multimedia extravaganza Not easy and expensive Lower end systems : begin at $25,000 High end systems : $250,000 to $2 million

Secure Transactions and Ordering: 

Secure Transactions and Ordering Payment handling: one of the easiest things to outsource To handle it on your own web server, you need to obtain a certificate from a Certificate Authority (CA) Certificates allow authenticated, encrypted, trusted connections Certificates expire and must be renewed for an annual fee You probably should be concerned about secure transactions even if payment handling is outsourced

Review of E-Commerce Infrastructure: 

Review of E-Commerce Infrastructure Hosting the site Obtaining a domain name Graphics design and web site design Web site programming Secure transactions and purchasing

Review of E-Commerce Infrastructure: 

Putting together a successful E-Commerce web site requires different skills from different people: Graphics designer Webmaster Programmer(s) Other business entities: marketing, etc. Few people have all these effective skills Review of E-Commerce Infrastructure

Review of E-Commerce Infrastructure: 

The good news: there are many choices for hosting and outsourcing the infrastructure development Your choices will depend on: How central is the E-Commerce aspect of your business to the core focus of your business? What is your current investment in IT and existing infrastructure? What are your available resources for capital investment? Review of E-Commerce Infrastructure

Outsourcing: Pros and Cons: 

Outsourcing: Pros and Cons Pros Faster Resources readily available Competitive - many alternatives You can focus on what you do best You’ll learn as you go Cons Can be costly Always risky – need to do research before and monitor performance during and after

Monitoring Website Performance: 

Monitoring Website Performance Log details Server log Access log Visit details Hits What pages do they visit? How long do they spend on a page? What “areas” of a page did they scan? Relationship of hits/pages visited/orders Feedback survey

Future Developments to Watch For in E-Commerce: 

Future Developments to Watch For in E-Commerce

Future Developments in EC: 

Future Developments in EC Public portals Content Community Commerce e.g., http://www.ivillage.com Exchanges Industry sponsored Private Public

Future Developments in EC: 

Future Developments in EC Enterprise E-Portals E-Commerce systems and legacy systems focus on transactions, Auctions focus on bringing together buyers and sellers Operational systems track orders and inventory. E-Portals tie together all of these disparate systems Enabling the flow of information to employees, customers and partners

Future Developments in EC: 

Future Developments in EC Wireless / Mobile Web Access Technologies handhelds (e.g., http://www.palm.com/) Applications CRM, commerce Implications customer may shop your physical store, see long lines, order online for delivery to home (another state?) have to cross market EC capability (e.g., in store marketing)

authorStream Live Help