H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Learning Objectives
In this chapter, you will learn about:
• Finding and evaluating Web-hosting services
• Basic functions of electronic commerce software
• Advanced functions of electronic commerce
software
Electronic Commerce
Eighth Edition
Chapter 9
Electronic Commerce Software
Electronic Commerce, Eighth Edition
Learning Objectives (cont’
d.)
2
Web Hosting Alternatives
• Electronic commerce software for small and midsize
businesses
• Electronic commerce software for midsize to large
businesses
• Electronic commerce software for large businesses
that have an existing information technology
infrastructure
• Self-hosting
– Run servers in-house
– Often used by large companies
• Third-party Web-hosting service providers
– Offer Web services, electronic commerce functions
– Often used by midsize, smaller companies
• Commerce service providers (CSPs)
– Provide Internet access, Web-hosting services
– Offer hosting services
•Help companies conduct electronic commerce
Electronic Commerce, Eighth Edition
3
Electronic Commerce, Eighth Edition
4
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Web Hosting Alternatives (cont’
d.)
Web Hosting Alternatives (cont’
d.)
• Commerce service providers (CSPs) (cont’
d.)
• Service provider hosting arrangements (cont’
d.)
– Offer Web server management, rent application
software
– Also called:
– Dedicated hosting
•Client Web server available, and the…
•Server not shared with other clients
•Managed service providers (MSPs)
•Application service providers (ASPs)
– Service provider responsibilities (shared and
dedicated hosting)
•Owns server hardware, leased to client, and…
•Maintains Web server hardware, software
•Provides Internet connection through its routers, other
network hardware
• Service provider hosting arrangements
– Shared hosting
•Client's Web site on server hosting other Web sites
simultaneously
•Operated by service provider at its location
Electronic Commerce, Eighth Edition
5
Electronic Commerce, Eighth Edition
6
7
Electronic Commerce, Eighth Edition
8
Web Hosting Alternatives (cont’
d.)
• Service provider hosting arrangements (cont’
d.)
– Co-location service
•Service provider rents physical space to client
•Provides reliable power supply, Internet connection
•Clients install own server hardware, software; maintain
server
• Finding service providers
– Local telephone directory
– Web directories
•The List
•Google Directory of Web Host Directories
Electronic Commerce, Eighth Edition
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Basic Functions of Electronic
Commerce Software
Web Hosting Alternatives (cont’
d.)
• Comparing Web hosts
• Software and hardware products to build sites –a
company has choices:
– HostIndex site
• Web-hosting alternatives and services
– Inexpensive hosted stores with software tools, or,
– Expensive sophisticated electronic commerce
software suites
– TopHosts.com and HostSearch sites
• Major Web directories
• Electronic commerce software needs determined by:
– Google Directory of Web Host Directories
– Expected enterprise size, projected traffic, sales
– Budget
• Web server-hosting decision: main factor
– Scalable
•Online store creation is less expensive than building
retail store chain
•External or in-house host considerations
•Web server hardware, software combinations
adaptable to meet changing requirements when needs
of clients grow
Electronic Commerce, Eighth Edition
9
10
Catalog Display
Basic Functions of Electronic
Commerce Software (cont’
d.)
• Catalog organizes goods and services being sold
– Organizes offerings into departments
– Web store advantage
• All electronic commerce solutions must provide:
•Single product can be in multiple categories, e.g., sneakers
can be in footware and athletic wear
– Catalog display
– Shopping cart capabilities
– Transaction processing
• Catalog: listing of goods and services
• Static catalog: simple list written in HTML
• Larger complex sites may include:
– On Web page or series of Web pages
– Software
•Adding features, capabilities to basic commerce tools e.g., supply chain management software; middleware
that integrates the electronic commerce system with
existing company information systems that handle
inventory contro, order processing & accounting
Electronic Commerce, Eighth Edition
Electronic Commerce, Eighth Edition
11
• Dynamic catalog: item information stored in database
– Separate computer accessible to server running Web site
itself (usually). Can have multiple pictures of items,
detailed descriptions and search tools to allow customers
to search for an item.
Electronic Commerce, Eighth Edition
12
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Catalog Display (cont’
d.)
• Large, well-known electronic commerce sites
– Include many features; are professional looking
• Small electronic commerce site
– Simple, inexpensive electronic commerce software
– Few features, clean look
– Small Web stores (sell fewer than 100 items)
•Use simple list of products or categories (static)
•Item organization not particularly important
•Can provide item photo
• Good sites provide alternative ways to find products
– Search engine
Electronic Commerce, Eighth Edition
13
Electronic Commerce, Eighth Edition
14
15
Electronic Commerce, Eighth Edition
16
Shopping Cart
• Early days of electronic commerce
– Used forms-based shopping
•Shoppers selected items for purchase by filling out
online forms
•Awkward if ordering more than one or two items
– Problems
•Need to write down product codes, unit prices, other
information before ordering, because this information
was on a separate page
•Customers forgot whether submit button clicked
– Confusing and error prone
Electronic Commerce, Eighth Edition
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Shopping Cart (cont’
d.)
• Electronic shopping carts
– Today: electronic commerce standard
– Keep track of items customer selected
– Customer may view cart contents, add items, remove
items
– Figure 9-4
• Shopping cart software
– BIZNET Internet Services, SalesCart, WebGenie
Software
– Figure 9-5
Electronic Commerce, Eighth Edition
17
Electronic Commerce, Eighth Edition
18
Shopping Cart (cont’
d.)
• Web is stateless
– Unable to remember anything from one session to
another
– To retrieve shopping cart information later
•Information must be stored explicitly
•Use cookies
– If shopper’
s browser does not allow cookie storage
•Electronic commerce software automatically assigns
temporary number
•Example: ShopSite commerce software package
appends temporary number to end of URL to identify
the customer
Electronic Commerce, Eighth Edition
19
Electronic Commerce, Eighth Edition
20
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Transaction Processing
Transaction Processing (cont’
d.)
• Occurs when shopper proceeds to virtual checkout counter
• Most companies use accounting software package
– Click checkout button
– Record sales and inventory movements
• Electronic commerce software performs necessary
calculations
• Web browser software and seller’
s Web server software
switch into secure communication state –discussed in
chapter 10
• Most complex part of online sale
• Must compute sales taxes and shipping costs
– Software: update tax rates automatically
– FedEx and UPS
•Offer software integrating with electronic commerce
software
– Web server software must communicate with other software
running on seller’
s other computers, e.g., tax, shipping,
inventory, accounting
Electronic Commerce, Eighth Edition
• Other calculation complications
– Coupons, special promotions, time-sensitive offers
21
Electronic Commerce, Eighth Edition
Advanced Functions of Electronic
Commerce Software
22
Middleware
• Middleware software
• Large company e-commerce operations
– Takes sales and inventory shipments information
from electronic commerce software, and…
– Transmits to accounting and inventory management
software (in a format systems can read)
– May have substantial business activity
•Not related to electronic commerce, i.e., they do nononline business as well
– Exceptions: Amazon.com and Buy.com –online only
• Sources
• Important that such companies…
– Companies can write own middleware or…
– Purchase customized middleware
– Integrate electronic commerce activities into other,
non-online operations
• “Interoperability”means…
– Making information systems work together
– Important goal when installing middleware
Electronic Commerce, Eighth Edition
23
Electronic Commerce, Eighth Edition
24
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Enterprise Application Integration and
Databases
Middleware (cont’
d.)
• Middleware costs
• Application program (application software,
application)
– Primarily consulting fees to make software work
– Range: $50,000 to several million dollars
– Program performing specific function
• Application server (computer)
•Depending on complexity
• Major middleware vendors
– Takes request messages received by Web server
•Runs application program performing action based on
request message’
s contents
•Actions determined by business logic
– BEA Systems, Broadvision, Digital River, IBM Tivoli
Systems
• Business logic
– Rules used in the business
Electronic Commerce, Eighth Edition
25
Enterprise Application Integration and
Databases (cont’
d.)
26
Enterprise Application Integration and
Databases (cont’
d.)
• Types of application servers:
• Application integration (enterprise application
integration)
– Page-based and component-based systems
• Page-based application systems
– Creation of links among scattered applications
– Interconnects organization’
s business logic
– Accomplished by programs transferring information
– Return pages generated by scripts containing rules
for…
•Presenting data on Web page with the business logic
•From one application to another
– Work well for small, midsize Web sites
– Examples
– Various program data formats differ, so programs
must…
•Adobe ColdFusion
•JavaServer Pages (JSP)
•Microsoft Active Server Pages (ASP)
•Hypertext Preprocessor (PHP)
•Must edit and reformat data
•Increasingly, programmers are using XML data feeds
Electronic Commerce, Eighth Edition
Electronic Commerce, Eighth Edition
27
Electronic Commerce, Eighth Edition
28
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Enterprise Application Integration and
Databases (cont’
d.)
Enterprise Application Integration and
Databases (cont’
d.)
• Component-based application systems
• Databases contain business logic information that
application servers use
• Database manager (software)
– Separate presentation logic from business logic
– Preferred by larger businesses
– Each logic component created in its own module,
which makes…
– Stores information in highly structured way
– Database structure allows database manager
software to retrieve database information
– Smaller electronic commerce sites can use…
•Updating, changing system elements much easier
– Common Web component-based systems
•Enterprise JavaBeans (EJBs)
•Microsoft: Component Object Model (COM)
•Object Management Group: Common Object Request
Broker Architecture (CORBA)
Electronic Commerce, Eighth Edition
•Low-cost database (Microsoft Access)
– Larger electronic commerce sites
•Need power (e.g., IBM DB2, Microsoft SQL Server,
Oracle)
29
Electronic Commerce, Eighth Edition
30
31
Electronic Commerce, Eighth Edition
32
Enterprise Application Integration and
Databases (cont’
d.)
• “Distributed information systems”refers to…
– Large information systems storing data in many
different physical locations
• Distributed database systems
– Databases within distributed information systems
• Complexity leads to high cost
• MySQL database software
– Maintained by community of programmers
– Open source software: downloadable (free)
•Software source code freely available (“open”)
– Owned by Sun since 2008
Electronic Commerce, Eighth Edition
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Web Services (cont’
d.)
Web Services
• What Web services can do
• The idea of Web services (software tools) has
been extended to mean…
– Offer improved customer service, reduced costs
– Provide XML data feeds
• Flow from one application to another
– Provide data feeds between two different companies
– Application software in one organization
communicates with other applications
•Over a network using specific set of standard protocols
(SOAP, UDDI, WSDL) dicussed soon
•Web services (another definition)
– Self-contained, modular unit of application logic,
which…
– Provides business functionality to other applications
– Through Internet connection
Electronic Commerce, Eighth Edition
33
• Examples
– Information portal (J.P. Morgan Chase & Co.), which contains various
financial information
– Automating communications (Nationwide Building Society) – an English
mortgage company. It intakes mortgage requests from mortgage
application service companies. Results are sent back to these
companies.
– Generating Web pages (CUNA Mutual Group) –company provides
services to credit unions. They use older systems with a web services
layer which creates web pages.
Electronic Commerce, Eighth Edition
34
Web Services (cont’
d.)
Web Services (cont’
d.)
• How Web services work
– Key element
• How Web services work (cont’
d.)
•Programmers write software accessing business application
logic units without knowing details of how the logic unit is
implemented; you do know, however, what service it provides
and how to interface with it
– Machine-to-machine communication
•Allows programs written in different languages on different
platforms to communicate, accomplish transaction processing,
and perform other business tasks
•Originally accomplished with HTML
•More often implemented with XML today
Electronic Commerce, Eighth Edition
35
– First Web services
•Information sources
•Allowed programmers to incorporate information
sources into software applications, e.g., to put the
information into spreadsheets
– More advanced example
•Company uses Web services purchasing software to
obtain vendor price information
•Purchasing agent authorizes purchase using software
to submit order, track until shipment received
•Vendor's Web services software checks buyer’
s credit,
and contracts with freight company
Electronic Commerce, Eighth Edition
36
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Web Services (cont’
d.)
Web Services (cont’
d.)
• SOAP, WSDL, and UDDI specifications (cont’
d.)
• SOAP, WSDL, and UDDI specifications
– Web Services Description Language (WSDL)
– Simple Object Access Protocol (SOAP)
•Describes logical units characteristics making up
specific Web services
•Message-passing protocol defining how to send
marked up data from one software application to
another across a network
– More information
•W3CWeb Services Activity pages
– Full SOAP specification
– Universal Description, Discovery, and Integration
(UDDI) specification
•W3C SOAP Page
•Set of protocols identifying Web services locations’
associated WSDL descriptions
– More information
•UDDI Web site
Electronic Commerce, Eighth Edition
37
Electronic Commerce, Eighth Edition
Web Services (cont’
d.)
Web Services (cont’
d.)
• SOAP, WSDL, and UDDI specifications (cont’
d.)
• The future of Web services
– Software vendors embracing Web services idea in
new technology initiatives
– Web services present a major change in business
computing
– Historically:
•Microsoft .NET
•Sun Java 2 Platform, Enterprise Edition
•IT industry resisted standards; used programming
languages unable to communicate with each other
•Large businesses hired armies of programmers
– Advantage
•Less expensive to implement than older approaches
that required programmers to write or adapt multiple
middleware software programs
Electronic Commerce, Eighth Edition
38
– Today:
•Web services gaining momentum
•Web services are in 25 percent of current data
integration projects
39
Electronic Commerce, Eighth Edition
40
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Web Services (cont’
d.)
Integration with ERP Systems
• B2B interactions occur within large firms tend to be…
• The future of Web services (cont’
d.)
– Complex systems require security tools such as…
•Encryption and authentication
– Potential pitfalls
• Enterprise resource planning (ERP) software
packages
•Many variations of XML; data partners must agree
•Software applications becoming dependent on Web
services; must include reliable quality of service,
service-level agreements
•Still developing web services management standards;
subscriber needs detailed agreement with each web
services provider
– Business systems integrating all business facets
•Accounting, logistics, manufacturing, marketing, planning,
project management, treasury functions
• Two major ERP vendors are:
– Oracle and SAP
– Costs: between $2 million and $25 million
– Successful implementation: MSN Money
•ComStock Web services acknowledgment on page
Electronic Commerce, Eighth Edition
41
Electronic Commerce, Eighth Edition
42
Electronic Commerce Software for
Small and Midsize Companies
• For small and medium-sized businesses, there is…
– Software to implement online business Web sites
• Web site
– Stands alone in its business activities
– Does not coordinate completely with the business’
other activities
Electronic Commerce, Eighth Edition
43
Electronic Commerce, Eighth Edition
44
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Basic Commerce Service Providers
(cont’
d.)
Basic Commerce Service Providers
• Service provider’
s shared or dedicated hosting
services
• CSPs offer free or low-cost e-commerce software
– Staffing burden shifts from company to Web host
• CSPs (commerce service provider) hosting services
– Same advantages as ISPs
– Large Web site cost spread over several “renters”
– Low cost
•Host provider purchased and configured the server
•Host provider keeps server working through storms and
power outages
Electronic Commerce, Eighth Edition
45
– Electronic commerce sites kept on CSP’
s server
– Software built into CSP’
s site
– Cost: $20 per month
– Designed for small online businesses
•Selling few items (no more than 50)
•Relatively low transaction volumes (fewer than 20
transactions per day)
Electronic Commerce, Eighth Edition
46
Electronic Commerce, Eighth Edition
48
Basic Commerce Service Providers
(cont’
d.)
• CSP example: ValueWeb
– Offers comprehensive e-commerce hosting services
•Shared hosting, dedicated hosting, co-location services
• CSP example: ProHosting.com and 1&1 Internet
– Serving small, midsize company market
– Figure 9-8
• CSP example: Yahoo! Merchant Solutions
– Figure 9-9
Electronic Commerce, Eighth Edition
47
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Mall-Style Commerce Service
Providers
• Mall-style CSPs services offer:
– Internet connection,
– Web site creation tools,
– Little or no banner advertising clutter
– Costs
•Low monthly fee
•One-time setup fees
•Percentage of (or fixed) amount for each transaction
– Online store design tools, storefront templates, easyto-use interface, Web page-generation capabilities,
page maintenance
Electronic Commerce, Eighth Edition
49
Mall-Style Commerce Service
Providers (cont’
d.)
50
Mall-Style Commerce Service
Providers (cont’
d.)
• Mall-style CSPs services (cont’
d.)
• Another example
– Shopping cart software (or ability to use another
vendor’
s shopping cart software)
– Payment processing services
– Online merchant selling through Amazon.com
– Sells used items on same page that Amazon.com
lists new products
– Merchants display offerings product by product
– Amazon offers a Pro Merchant program for
businesses which sell many products
– Figure 9-10
•Allows online store to accept credit cards
• Main mall-style CSP: eBay stores
– Cost: less than $20 per month
– Small merchant has its own store
Electronic Commerce, Eighth Edition
Electronic Commerce, Eighth Edition
51
Electronic Commerce, Eighth Edition
52
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Mall-Style Commerce Service Providers
(cont’
d.)
• Basic and mall-style CSPs
– Provide data-mining capabilities
– Search through site data collected in log files
– Data mining
•Looks for hidden patterns in data, e.g.,
•Businesses find customers with common interests, or…
•Discover previously unknown relationships among data
– Reports indicate e.g.,:
•Problematic pages in store’
s design, such as:
•Number of pages average customer must load and
display before locating desired merchandise –if too
many pages have to be loaded until customer can find
product, may leave website without purchasing
Electronic Commerce, Eighth Edition
53
Electronic Commerce, Eighth Edition
54
55
Electronic Commerce, Eighth Edition
56
Estimated Operating Expenses for a
Small Web Business
• Small business owner Web store
– Use either basic CSP or mall-style CSP
– First-year expenses estimate
•See Figure 9-11
•Total omits payment processing charge
•Actual costs: somewhat lower or considerably higher
Electronic Commerce, Eighth Edition
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Estimated Operating Expenses for a
Small Web Business (cont’
d.)
Estimated Operating Expenses for a
Small Web Business (cont’
d.)
• Self-hosting a Web site
• Costs of larger sites: more difficult to estimate
– Comparable first year estimated costs
– Largest element
•Setup and Web site maintenance ($3000 to $20,000,
one time)
•High-bandwidth Internet connection ($1200 to $12,000
per year)
•Secure a small server room ($5000 a year)
•Technicians to monitor and maintain equipment
($50,000 to $100,000 annually)
•Total costs ($60,000 to $100,000)
•Subsequent years: costs about the same
Electronic Commerce, Eighth Edition
57
•Integrating Web site with existing systems
– Midsize businesses: start-up costs
•$100,000 to $500,000
•Recurring annual costs of about half that amount
– Large businesses: start-up costs
•Recurring yearly costs: 50 percent of the launch cost in
order to operate, maintain, improve site
Electronic Commerce, Eighth Edition
58
Web Site Development Tools
Electronic Commerce Software for
Midsize to Large Businesses
• Adobe Dreamweaver
– Includes integrated development environment
– Creates elements of dynamic Web pages as easily as
static Web pages
• Midrange electronic commerce software products
– Provide merchant control
• Microsoft Expression Web
•Merchandising choices, site layout, internal
architecture, remote and local management options
– Builds framework of functional midrange electronic
commerce site
– Differences
•Price, capability, database connectivity, software
portability, software customization tools, computer
expertise required
• After Web site creation
– Add purchased software elements
•Shopping carts, content management software (the
software used by companies to control the large
amount of text, graphics, & media files used in business
Electronic Commerce, Eighth Edition
59
Electronic Commerce, Eighth Edition
60
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Web Site Development Tools (cont’
d.)
• Intershop Enfinity provides:
Web Site Development Tools (cont’
d.)
• Intershop Enfinity provides: (cont’
d.)
– Search and catalog capabilities
– Electronic shopping carts
– Online credit card transaction processing
– Ability to connect to existing back-end business
systems and databases
– Setup wizards
– Good catalog and data management tools
– Built-in storefront templates
– Management and editing of a storefront
– Product inventory management module
•Tracks inventory levels, shows available item quantity
•Creates inventory transactions lists
•Enters new products into inventory
– Discount rules easy to enter
– Database management system bundled
•Alternative databases: IBM DB2 or Oracle databases
– Includes automated e-mail facility
– Support for secure transactions
– Site and customer reports available
•Through Web browser (local or remote)
Electronic Commerce, Eighth Edition
61
Web Site Development Tools (cont’
d.)
62
Web Site Development Tools (cont’
d.)
• IBM WebSphere Commerce Professional Edition
(cont’
d.)
• IBM WebSphere Commerce Professional Edition
– Set of software components
– Runs on many different operating systems
– Wizard used to create starter store
•Suitable for midsize to large businesses
•Selling goods and services on the Internet
•Can add more functionality as needed
– Includes:
– Large collection of functions, utility programs,
commands
•Catalog templates, setup wizards, advanced catalog
tools to create attractive and efficient sites
•Create customized online store experience
•JavaScript, Java, C++ expertise required
– Useful for B2B and B2C applications
– Smooth connection to existing corporate systems
– Connects to existing databases, other legacy systems
– Can administer several stores through one interface
•Inventory databases, procurement
Electronic Commerce, Eighth Edition
Electronic Commerce, Eighth Edition
63
Electronic Commerce, Eighth Edition
64
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Web Site Development Tools (cont’
d.)
• IBM WebSphere Commerce Professional Edition
(cont’
d.)
• Microsoft Commerce Server 2007
– Tools included for:
– Standard electronic commerce features
•User profiling and management
•Transaction processing
•Product and service management
•Target audience marketing
•Tools for a shopping cart
•E-mail notifications upon sale completion
•Secure transaction support
•Promotions and discounting
•Shipment tracking
•Links to legacy accounting systems
•Browser-based local and remote administration
– Wizards help users build site in several steps
– Not an out-of-the box solution
•Program code must be written for specific user needs
– Microsoft Visual Studio .NET tools bundled
– Costs ($20,000 to $200,000)
Electronic Commerce, Eighth Edition
•Allows site customization
65
Web Site Development Tools (cont’
d.)
• Microsoft Commerce Server 2007 (cont’
d.)
Electronic Commerce, Eighth Edition
66
Web Site Development Tools (cont’
d.)
• Microsoft Commerce Server 2007 (cont’
d.)
– Customer-oriented tools help:
– Includes: (cont’
d.)
•Engage customer (marketing and advertising)
•Complete order
•Analyze sales information (after the sale)
•E-mail confirmation for completed sales transactions
•Ability to support secure transactions
•Ability to connect to existing accounting systems
•Site administration through Web browser
– Includes:
•Predefined reports: analyzing site activities, product
sales data
•Storefront templates
•Wizards for setting up, initializing store
•Ability for database connections
•Shopping cart
Electronic Commerce, Eighth Edition
Web Site Development Tools (cont’
d.)
– Runs on Windows Server operating system and SQL
Server database system
– Costs: ($7000 to $20,000 per processor)
• Typical company cost usually between $20,000 and
$150,000
67
Electronic Commerce, Eighth Edition
68
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Electronic Commerce Software for
Large Businesses (cont’
d.)
Electronic Commerce Software for
Large Businesses
• Enterprise-class software
• Larger businesses need:
– Commerce software for large systems
– Same advanced capabilities as midsize firms, but
able…
– To handle higher transaction loads
– Dedicated software applications
• Enterprise
– Describes system serving multiple locations or divisions of one
company
– Encompasses all areas of the business
•To handle specific elements of their online business
• Software provides tools for B2B and B2C commerce
• Interacts with wide variety of existing systems
• Distinction between midrange and large-scale
electronic commerce software
– Database, accounting, ERP –Enterprise Resource Planning –
business software that integrates all facets of a business, including
planning, manufacturing, sales and marketing
– Price
– Extensive support for business-to-business
commerce
Electronic Commerce, Eighth Edition
• Costs: $100,000 to $10 million
69
Electronic Commerce, Eighth Edition
70
Enterprise-Class Electronic Commerce
Software
Enterprise-Class Electronic Commerce
Software (cont’
d.)
• Requires several dedicated computers, besides the
Web server system, and firewalls
• Enterprise-class products
• Provides standard automated electronic commerce
activities
– IBM WebSphere Commerce Enterprise, Oracle EBusiness Suite, products from Broadvision
• Provides tools for linking to and supporting supply,
purchasing activities
Electronic Commerce, Eighth Edition
71
– Secure transaction processing and fulfillment
– Interaction with firm’
s inventory system
– Making proper stock adjustment
– Issuing purchase orders for needed supplies
– Generating other accounting entries
– Placing orders explicitly
Electronic Commerce, Eighth Edition
72
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Enterprise-Class Electronic Commerce Software (cont’d.)
• Enterprise-class electronic commerce architecture
– Customers use Web browsers to…
•Locate and browse company’
s catalog
– For electronic goods: download directly or complete order
forms to get hard-copy shipped
– Web server linked to back-end systems
•Database management system, merchant server, application
server
•Purchasing history: way to provide customer recommendations
– Merchant server houses e-business system, key back-end
software, e.g., it processes payments, shipping & tax rates,
& sends messages to the fulfillment dep’
t to ship goods to
customer (see next slide)
Electronic Commerce, Eighth Edition
73
Enterprise-Class Electronic Commerce
Software (cont’
d.)
74
Customer Relationship Management
Software
• Goal
– Understand each customer’
s specific needs
– Customize product or service to meet those needs
• Additional specialized software
– Accomplishes particular objectives
– Example: deliver entertainment (music or videos)
directly to consumers’mobile devices
• Idea
– Customer whose needs met exactly will be…
•Willing to pay more for goods or services
•Use OpenMarket software product
• Customer relationship management (CRM) software
– Customer relationship management software
– Supply chain management software
– Software automatically managing and rotating Web
Site content - to keep it fresh
– Software which helps companies manage the
knowledge base they have
Electronic Commerce, Eighth Edition
Electronic Commerce, Eighth Edition
– Obtains data from operations software – that conducts
activities such as sales automation, customer service center
operations and marketing campaigns
– Gathers data about customer activities
– Uses data to conduct analytical activities
75
Electronic Commerce, Eighth Edition
76
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Customer Relationship Management
Software (cont’
d.)
Customer Relationship Management
Software (cont’
d.)
• CRM software source
• Basic CRM
– Companies create their own
•May use outside consultants and own IT staffs
– Uses customer information to sell more goods or
services
– Most companies likely to buy CRM software package
– Oracle Siebel CRM Applications
• Advanced CRM
•Leading CRM software provider
– Delivers extremely attractive, positive customer
experiences
– SAP CRM: another vendor
– Costs: $25,000 to millions of dollars
• CRM business importance
– Maintaining customer loyalty
– Maintaining positive, consistent contacts with multiple
employees at the purchasing company
Electronic Commerce, Eighth Edition
77
• New developments in CRM software market
– Companies offering software for use on their Web
site, rather than the user’
s web site
– Example: Salesforce.com
Electronic Commerce, Eighth Edition
78
Customer Relationship Management
Software (cont’
d.)
• 1996 to 2000
– Early days of CRM software implementation
– Tool for changing overall customer strategy
– Spent millions of dollars; had bad experiences because they
used CRM to revamp their overall customer strategy, rather than
use it to solve smaller, more specific problems
• 2000 through 2003
– CRM software sales dropped
• Since 2003
– CRM software sales resuming upward trend
– CRM used to solve smaller, more specific problems
– Popular target: call center operations
Electronic Commerce, Eighth Edition
79
Electronic Commerce, Eighth Edition
80
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Supply Chain Management Software
(cont’
d.)
Supply Chain Management Software
• Two major firms offering SCM software
• Companies coordinate planning and operations:
– i2 Technologies and JDA Software
– With industry supply chains partners
• Two general function types: planning and execution
• SCM planning software
– Develops coordinated demand forecasts using…
• i2 Technologies product: RHYTHM
– Components managing demand planning, supply
planning, demand fulfillment
• Most supply chain management software
•Information from each participant in supply chain
– Developed for manufacturing firms
• SCM execution software help with such…
– Tasks as warehouse and transportation management
•Manage inventory purchases, manufacturing processes
• JDA Software
– Successful line of software products for managing
retail order entry and sales side of inventory control
Electronic Commerce, Eighth Edition
81
Supply Chain Management Software
(cont’
d.)
82
Content Management Software
• JDA Software (cont’
d.)
• Content management software
– 2006: JDA Software purchased Manugistics – whose
software handled supply chain management
– Now JDA Software
•Manages every operation in the supply chain
– Controls large amounts of text, graphics, media files
• With the rise of wireless devices…
– Content management even more important
• Businesses customize Web pages
• Content management software
• Cost of SCM software implementations
– Varies tremendously
– Test the software before committing to it…
•Depends on number of locations in the supply chain
•Ensure straightforward software procedures for
performing regular maintenance
•Software should facilitate typical content creation tasks
– Example: retailer with 500 stores
•Pay between $3 million and $10 million
Electronic Commerce, Eighth Edition
Electronic Commerce, Eighth Edition
83
Electronic Commerce, Eighth Edition
84
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c
H
F-XC A N GE
H
F-XC A N GE
c u-tr a c k
N
y
bu
to
k
lic
Knowledge Management Software
Content Management Software
(cont’
d.)
• Companies providing content management software
– As components in other enterprise software packages
•IBM and Oracle
• Companies providing stand-alone content
management software
– EMC and Open Text Corporation
• Software costs
– Between $100,000 and $500,000
• Customization, configuration, implementation costs
• Systems that help manage knowledge itself
– Rather than documentary representations of that
knowledge
• Four main things knowledge management software should
do:
– Collect and organize information
– Share information among users
– Enhance ability of users to collaborate
– Preserve knowledge gained through information use
•For future users benefit from the learning of current
users
– Three or four times the cost of software
Electronic Commerce, Eighth Edition
85
Electronic Commerce, Eighth Edition
Knowledge Management Software
(cont’
d.)
Summary
• Includes tools to read:
• Small, midsize, large businesses
– Electronic documents, scanned paper documents, email messages, Web pages
• Includes powerful search tools
– Use proprietary semantic, statistical algorithms
• Collects knowledge elements by extracting them
from normal interactions users have with information
• Major software vendors: IBM, Microsoft SharePoint,
BMC Software, CustomerVision
• Costs: $10,000 to $1 million or more
Electronic Commerce, Eighth Edition
86
87
– Electronic commerce
•Software functions, selection decisions
•Host provider considerations
• Key elements of electronic commerce software
• Web services implementation
– Basic CSP and mall-style hosting services
– Electronic commerce software packages
• Special needs of midsize and larger business
Electronic Commerce, Eighth Edition
88
.d o
o
.c
m
C
m
w
o
.d o
w
w
w
w
w
C
lic
k
to
bu
y
N
O
W
!
PD
O
W
!
PD
c u-tr a c k
.c