L
Learning
i Obj
Objectives
ti
In this chapter, you will learn about:
• Finding and evaluating Web
Web-hosting
hosting services
• Basic functions of electronic commerce software
• Advanced functions of electronic commerce
software
E-Business
E
Business
Eighth
g
Edition
Chapter 9
Electronic Commerce Software
E-Business, Eighth Edition
L
Learning
i Obj
Objectives
ti
((cont’d.)
t’d )
2
W b Hosting
Web
H ti Alt
Alternatives
ti
• Electronic commerce software for small and midsize
businesses
• Electronic commerce software for midsize to large
b i
businesses
• Electronic commerce software for large businesses
that have an existing information technology
infrastructure
• Self-hosting
– Run servers in
in-house
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
E-Business, Eighth Edition
3
E-Business, Eighth Edition
4
W b Hosting
Web
H ti Alt
Alternatives
ti
((cont’d.)
t’d )
W b Hosting
Web
H ti Alt
Alternatives
ti
((cont’d.)
t’d )
• Commerce service providers (CSPs) (cont’d.)
• Service provider hosting arrangements (cont’d.)
– Offer Web server management
management, rent application
software
– Also
Al called:
ll d
– Dedicated hosting
• Client Web server available
• Server
S
nott shared
h d with
ith other
th clients
li t
• Managed service providers (MSPs)
• Application service providers (ASPs)
– Service provider responsibilities (shared and
d di
dedicated
dh
hosting)
i )
• Owns server hardware, leased to client
• Maintains Web server hardware, software
• Provides Internet connection through its routers, other
network hardware
• Service provider hosting arrangements
– Shared hosting
• Client's
Client s Web site on server hosting other Web sites
simultaneously
• Operated
p
by
y service p
provider at its location
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5
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6
7
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8
W b Hosting
Web
H ti Alt
Alternatives
ti
((cont’d.)
t’d )
• Service provider hosting arrangements (cont’d.)
– Co-location
Co location service
• Service provider rents physical space to client
• Provides
P id reliable
li bl power supply,
l IInternet
t
t connection
ti
• Clients install own server hardware, software; maintain
server
• Finding service providers
– Local telephone directory
– Web directories
• The List
• Google Directory of Web Host Directories
E-Business, Eighth Edition
Basic Functions of Electronic
Commerce Software
W b Hosting
Web
H ti Alt
Alternatives
ti
((cont’d.)
t’d )
• Comparing Web hosts
• Software and hardware products to build sites
– HostIndex site
– IInexpensive
i hosted
h t d stores
t
with
ith software
ft
tools
t l
– Expensive sophisticated electronic commerce
software suites
• Web-hosting alternatives and services
– TopHosts.com
T H t
and
dH
HostSearch
tS
h sites
it
• Major Web directories
• Electronic commerce software needs determined by:
y
– Google Directory of Web Host Directories
– Expected enterprise size, projected traffic, sales
– Budget
• Web server
server-hosting
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,
hardware software combinations
adaptable to meet changing requirements when needs
of clients grow
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9
E-Business, Eighth Edition
Basic Functions of Electronic
Commerce Software (cont’d.)
10
C t l Display
Catalog
Di l
• Catalog organizes goods and services being sold
• All electronic commerce solutions must provide:
– Organizes
g
offerings
g into departments
p
– Web store advantage
– Catalog display
– Shopping cart capabilities
– Transaction processing
• Single product in multiple categories
• Catalog: listing of goods and services
• Static
St ti catalog:
t l
simple
i l lilistt written
itt iin HTML
• Larger
g complex
p
sites may
y include:
– Software
– On Web page or series of Web pages
• Adding features,
features capabilities to basic commerce tools
• Dynamic catalog: item information stored in
database
– Separate computer accessible to server running Web
site itself (usually)
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11
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12
C t l Display
Catalog
Di l ((cont’d.)
t’d )
• Large, well-known electronic commerce sites
– Include manyy features;; are professional
p
looking
g
• Small electronic commerce site
– Simple,
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
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13
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14
15
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16
Sh
Shopping
i C
Cartt
• Early days of electronic commerce
– Used forms
forms-based
based shopping
• Shoppers selected items for purchase by filling out
online forms
• Awkward if ordering more than one or two items
– Problems
P bl
• Need to write down product codes, unit prices, other
i f
information
ti before
b f
ordering
d i
• Customers forgot whether submit button clicked
– Confusing and error prone
E-Business, Eighth Edition
Sh
Shopping
i C
Cartt ((cont’d.)
t’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
pp g cart software
– BIZNET Internet Services, SalesCart, WebGenie
Software
– Figure 9-5
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17
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18
Sh
Shopping
i C
Cartt ((cont’d.)
t’d )
• Web is stateless
– Unable to remember anything from one session to
another
– To
T retrieve
ti
shopping
h
i cartt iinformation
f
ti later
l t
• 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
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19
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20
T
Transaction
ti Processing
P
i
T
Transaction
ti Processing
P
i ((cont’d.)
t’d )
• Occurs when shopper proceeds to virtual checkout
counter
• Most companies use accounting software package
– Record sales and inventory movements
– Click checkout button
• Must compute sales taxes and shipping costs
• El
Electronic
i commerce software
f
performs
f
necessary
calculations
• Web browser software and seller’s Web server
software switch into secure communication state
• Most complex part of online sale
– Software: update tax rates automatically
– FedEx and UPS
• Offer software integrating with electronic commerce
software
• Other calculation complications
– Coupons,
Coupons special promotions
promotions, time-sensitive offers
– Web server software must communicate with other
software running on seller’s other computers
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21
E-Business, Eighth Edition
Advanced Functions of Electronic
Commerce Software
22
Middleware
Middl
• Middleware software
• Large company e-commerce operations
– Takes sales and inventoryy shipments
p
information
from electronic commerce software
– Transmits to accounting and inventory management
software (format systems can read)
– May have substantial business activity
• Not related to electronic commerce
– Exceptions:
E
ti
Amazon.com
A
and
dB
Buy.com
• Important
• Sources
– Integrate electronic commerce activities into other
operations
p
– Companies can write own middleware
– Purchase
P h
customized
i d middleware
iddl
• Interoperability
– Making information systems work together
– Important goal when installing middleware
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23
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24
Enterprise
p
Application
pp
Integration
g
and
Databases
Middl
Middleware
((cont’d.)
t’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
A li i
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
y
• Business logic
– Rules used in the business
E-Business, Eighth Edition
25
Enterprise
p
Application
pp
Integration
g
and
Databases (cont’d.)
26
Enterprise
p
Application
pp
Integration
g
and
Databases (cont’d.)
• Types of application servers
• Application integration (enterprise application
integration)
– Page
Page-based
based and component-based
component based systems
• Page-based application systems
– Creation of links among scattered applications
– Interconnects
I t
t organization’s
i ti ’ business
b i
llogic
i
– Accomplished by programs transferring information
– Return pages generated by scripts containing rules
• Present data on Web page with the business logic
– Work well for small,
small midsize Web sites
– Examples
• From one application to another
– Various p
program
g
data formats differ
•
•
•
•
• Must edit and reformat data
• Increasingly using XML data feeds
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E-Business, Eighth Edition
27
Ad b ColdFusion
Adobe
C ldF i
JavaServer Pages (JSP)
Microsoft Active Server Pages (ASP)
Hypertext Preprocessor (PHP)
E-Business, Eighth Edition
28
Enterprise
p
Application
pp
Integration
g
and
Databases (cont’d.)
Enterprise
p
Application
pp
Integration
g
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
– Logic component created in its own module
– Stores information in highly structured way
– Database structure allows database manager
software to retrieve database information
– Smaller electronic commerce sites
• Updating, changing system elements much easier
– Common Web component-based systems
• Enterprise
p
JavaBeans ((EJBs))
• Microsoft: Component Object Model (COM)
• Object Management Group: Common Object Request
Broker Architecture (CORBA)
E-Business, Eighth Edition
• Low-cost database (Microsoft Access)
– Larger electronic commerce sites
• Need power (IBM DB2, Microsoft SQL Server, Oracle)
29
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30
31
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32
Enterprise
p
Application
pp
Integration
g
and
Databases (cont’d.)
• Distributed information systems
– Large
g information systems
y
storing
g data in many
y
different physical locations
• Distributed database systems
– Databases within distributed information systems
• Complexity
C
l it lleads
d tto hi
high
h costt
• MySQL database software
– Maintained by community of programmers
– Open source software: downloadable (free)
• Software source code freely available (“open”)
– Owned by Sun since 2008
E-Business, Eighth Edition
W b Services
Web
S i
W b Services
Web
S i
((cont’d.)
t’d )
• Web services (software tools)
• What Web services can do
– Application software in one organization
communicates with other applications
– Offer improved customer service,
service reduced costs
– Provide XML data feeds
• Over a network using specific set of standard protocols
(SOAP, UDDI, WSDL)
• Web
W b services
i
((another
th definition)
d fi iti )
– Information portal (J
(J.P.
P Morgan Chase & Co
Co.))
– Automating communications (Nationwide Building
Society)
– Generating Web pages (CUNA Mutual Group)
33
W b Services
Web
S i
((cont’d.)
t’d )
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34
W b Services
Web
S i
((cont’d.)
t’d )
• How Web services work (cont’d.)
• How Web services work
– First Web services
– Key element
• Information sources
• Allowed programmers to incorporate information
sources into software applications
• Programmers write software accessing business
application logic units without knowing details
– Machine-to-machine communication
– More advanced example
• All
Allows programs written
itt in
i diff
differentt llanguages on
different platforms to communicate, accomplish
transaction processing,
processing and perform other business
tasks
• Originally accomplished with HTML
• Implemented with XML today
E-Business, Eighth Edition
– Provide data feeds between two different companies
• Examples
– Self-contained, modular unit of application logic
– Provides business functionality to other applications
– Through
g Internet connection
E-Business, Eighth Edition
• Flow from one application to another
• Company uses Web services purchasing software to
obtain vendor price information
• Purchasing agent authorizes purchase using software
to submit order,
order track until shipment received
• Vendor's Web services software checks buyer’s credit,
contracts with freight company
35
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36
W b Services
Web
S i
((cont’d.)
t’d )
W b Services
Web
S i
((cont’d.)
t’d )
• SOAP, WSDL, and UDDI specifications (cont’d.)
• SOAP, WSDL, and UDDI specifications
– Web Services Description
p
Language
g g (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
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37
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W b Services
Web
S i
((cont’d.)
t’d )
38
W b Services
Web
S i
((cont’d.)
t’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:
Hi t i ll
• Microsoft .NET
NET
• Sun Java 2 Platform, Enterprise Edition
• IT industry resisted standards; used programming
l
languages
unable
bl tto communicate
i t with
ith each
h other
th
• Large businesses hired armies of programmers
– Advantage
Ad
• Less expensive to implement than older approaches
– Today:
• Web services gaining momentum
• Web services are in 25 percent of current data
integration projects
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39
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40
W b Services
Web
S i
((cont’d.)
t’d )
I t
Integration
ti with
ith ERP Systems
S t
• B2B interactions occur within large firms
• The future of Web services (cont’d.)
– Complex systems require security tools
– Potential pitfalls
• Encryption and authentication
• Many variations of XML; data partners must agree
• Software
S ft
applications
li ti
becoming
b
i d
dependent
d t on W
Web
b
services; must include reliable quality of service,
service level agreements
service-level
• Still developing management standards; subscriber
needs detailed agreement
• Enterprise resource planning (ERP) software
packages
– Business systems integrating all business facets
• Accounting, logistics, manufacturing, marketing,
planning, project management, treasury functions
• Two major ERP vendors
– Successful implementation: MSN Money
– Oracle and SAP
– Costs: between $2 million and $25 million
• ComStock Web services acknowledgment on page
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41
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42
Electronic Commerce Software for
Small and Midsize Companies
• Small and medium-sized businesses
– Software to implement online business Web sites
• Web site
– Stands alone in its business activities
– Does not coordinate completely
p
y with business’ other
activities
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43
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44
Basic Commerce Service Providers
(cont’d.)
B i C
Basic
Commerce S
Service
i P
Providers
id
• 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
CSP h
hosting
i services
i
– 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
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45
Electronic commerce sites kept on CSP’s
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)
y low transaction volumes ((fewer than 20
• Relatively
transactions per day)
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46
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48
Basic Commerce Service Providers
(cont’d.)
• CSP example: ValueWeb
– Offers comprehensive e
e-commerce
commerce hosting services
• Shared hosting, dedicated hosting, co-location services
• CSP
CS example: ProHosting.com and 1&1
& Internet
– Serving small, midsize company market
– Figure 9-8
• CSP example: Yahoo! Merchant Solutions
– Figure 9-9
E-Business, Eighth Edition
47
Mall-Style
y Commerce Service
Providers
• Mall-style CSPs services
–
–
–
–
Internet connection
Web site creation tools
Littl or no banner
Little
b
advertising
d ti i clutter
l tt
Costs
• Low monthly fee
• One-time setup fees
• Percentage of (or fixed) amount for each transaction
– Online store design tools, storefront templates, easyeasy
to-use interface, Web page-generation capabilities,
page
p
g maintenance
E-Business, Eighth Edition
49
Mall-Style
y Commerce Service
Providers (cont’d.)
50
Mall-Style
y 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
P
t processing
i services
i
– Online merchant selling through Amazon
Amazon.com
com
– Sells used items on same page that Amazon.com
li t new products
lists
d t
– Merchants display offerings product by product
– Amazon offers a Pro Merchant program
– Figure
g
9-10
• Allows online store to accept credit cards
• Main mall-style CSP: eBay stores
– Cost: less than $20 p
per month
– Small merchant has its own store
E-Business, Eighth Edition
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51
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52
Mall-Style
y Commerce Service
Providers (cont’d.)
• Basic and mall-style CSPs
– Provide data
data-mining
mining capabilities
– Search through site data collected in log files
– Data mining
• Looks for hidden patterns in data
• Businesses find customers with common interests
• Discover previously unknown relationships among data
– Reports indicate:
• Problematic pages in store’s
store s design
• Number of pages average customer must load and
display
p y before locating
g desired merchandise
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53
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54
55
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56
Estimated Operating
p
g Expenses
p
for a
Small Web Business
• Small business owner Web store
– Use either basic CSP or mall
mall-style
style CSP
– First-year expenses estimate
• See Figure 9-11
• Total omits payment processing charge
• Actual costs: somewhat lower or considerably higher
E-Business, Eighth Edition
Estimated Operating
p
g Expenses
p
for a
Small Web Business (cont’d.)
Estimated Operating
p
g Expenses
p
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
($60 000 to $100,000)
$100 000)
• Subsequent years: costs about the same
E-Business, Eighth Edition
57
Electronic Commerce Software for
Midsize to Large Businesses
• Integrating Web site with existing systems
– Midsize
Mid i b
businesses:
i
start-up
t t
costs
t
• $100,000 to $500,000
• Recurring annual costs of about half that amount
– Large businesses: start-up costs
• Recurring yearly costs: another 50 percent of the
launch (operate, maintain, improve site)
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58
W b Site
Web
Sit Development
D
l
tT
Tools
l
• Midrange electronic commerce software products
• Adobe Dreamweaver
– Provide merchant control
– Includes integrated development environment
– Creates elements of dynamic Web pages as easily as
static
t ti Web
W b pages
• Merchandising choices, site layout, internal
architecture remote and local management options
architecture,
– Differences
• Microsoft Expression Web
• P
Price,
i
capability,
bilit d
database
t b
connectivity,
ti it software
ft
portability, software customization tools, computer
expertise required
– Builds framework of functional midrange electronic
commerce site
• After Web site creation
– Add purchased software elements
• Shopping carts, content management software
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60
W b Site
Web
Sit Development
D
l
t Tools
T l (cont’d.)
(
t’d )
• Intershop Enfinity provides:
–
–
–
–
–
–
–
–
• Intershop Enfinity provides: (cont’d.)
Search and catalog
g capabilities
p
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)
E-Business, Eighth Edition
61
W b Site
Web
Sit Development
D
l
t Tools
T l (cont’d.)
(
t’d )
E-Business, Eighth Edition
62
W b Site
Web
Sit Development
D
l
t Tools
T l (cont’d.)
(
t’d )
• IBM WebSphere Commerce Professional Edition
(cont d.)
(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
S lli goods
d and
d services
i
on th
the IInternet
t
t
• Can add more functionality
– Includes:
–L
Large collection
ll ti off ffunctions,
ti
utility
tilit 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
g corporate
p
systems
y
– Connects to existing databases, other legacy systems
– Administer several stores through
g one interface
• Inventory databases, procurement
E-Business, Eighth Edition
W b Site
Web
Sit Development
D
l
t Tools
T l (cont’d.)
(
t’d )
63
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64
W b Site
Web
Sit Development
D
l
t Tools
T l (cont’d.)
(
t’d )
• IBM WebSphere Commerce Professional Edition
(cont d.)
(cont’d.)
• Microsoft Commerce Server 2007
– Tools included for:
– Standard electronic commerce features
•
•
•
•
•
•
•
•
•
•
•
Tools for a shopping cart
E-mail notifications upon sale completion
Secure transaction support
Promotions and discounting
Shi
Shipment
t ttracking
ki
Links to legacy accounting systems
Browser-based local and remote administration
• Program code must be written for specific user needs
– Microsoft Visual Studio .NET tools bundled
• Allows site customization
65
W b Site
Web
Sit Development
D
l
t Tools
T l (cont’d.)
(
t’d )
• Microsoft
Mi
ft C
Commerce S
Server 2007 (cont’d.)
(
t’d )
E-Business, Eighth Edition
66
W b Site
Web
Sit Development
D
l
t Tools
T l (cont’d.)
(
t’d )
• Microsoft Commerce Server 2007 (cont’d.)
– Customer-oriented tools help:
– Includes: (cont’d
(cont d.))
• Engage customer (marketing and advertising)
p
order
• Complete
• Analyze sales information (after the sale)
•
•
•
•
– Includes:
• Predefined reports: analyzing site activities, product
sales data
• Storefront templates
up initializing store
• Wizards for setting up,
• Ability for database connections
• Shopping cart
E-Business, Eighth Edition
User profiling and management
Transaction processing
Product and service management
Target audience marketing
– Wizards help users build site in several steps
– Not an out-of-the box solution
– Costs ($20,000 to $200,000)
E-Business, Eighth Edition
W b Site
Web
Sit Development
D
l
t Tools
T l (cont’d.)
(
t’d )
E-mail confirmation for completed sales transactions
Abilit tto supportt secure ttransactions
Ability
ti
Ability to connect to existing accounting systems
Site administration through Web browser
– Runs on Windows Server operating system and SQL
Server database system
– Costs: ($7000 to $20,000 per processor)
• Usually between $20,000 and $150,000
67
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68
Electronic Commerce Software for
Large Businesses
Electronic Commerce Software for
Large Businesses (cont’d.)
• Larger businesses need:
• Enterprise-class software
– Same advanced capabilities as midsize firms
– To handle higher transaction loads
– Dedicated software applications
– Commerce software for large systems
• Enterprise
– Describes system serving multiple locations of one
company
– Encompasses all areas of the business
• To handle specific elements of their online business
• Distinction between midrange and large-scale
electronic commerce software
• Software provides tools for B2B and B2C commerce
• Interacts with wide variety of existing systems
– Price
– Extensive support for business
business-to-business
to business
commerce
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– Database,
D t b
accounting,
ti
ERP
• Costs: $100,000 to $10 million
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Enterprise-Class
p
Electronic Commerce
Software
Enterprise-Class
p
Electronic Commerce
Software (cont’d.)
• Requires several dedicated computers, Web server
system and firewalls
system,
• Enterprise-class products
• Provides standard electronic commerce activities
– IBM WebSphere Commerce Enterprise, Oracle EBusiness Suite, products from Broadvision
• Provides tools for linking to and supporting supply,
purchasing
p
g activities
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–
–
–
–
–
–
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
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Enterprise-Class
p
Electronic Commerce
Software (cont’d.)
• Enterprise-class electronic commerce architecture
– Customers use Web browsers
• Locate and browse company’s catalog
– Electronic goods: download directly or complete order
forms
– Web server linked to back
back-end
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
back-end
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Enterprise-Class
p
Electronic Commerce
Software (cont’d.)
74
Customer Relationship
p Management
g
Software
• Goal
• Additional specialized software
– Understand each customer’s
customer s specific needs
– Customize product or service to meet those needs
– Accomplishes particular objectives
– Example: deliver entertainment (music or videos)
di tl tto consumers’’ mobile
directly
bil d
devices
i
• Idea
– Customer whose needs met exactly
• Use OpenMarket software product
• Willing to pay more for goods or services
– Customer relationship management software
– Supply chain management software
– Software automatically managing and rotating Web
Site content
– Knowledge management software
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E-Business, Eighth Edition
• Customer relationship management (CRM)
software
– Obtains data from operations software
– Gathers
G th
data
d t about
b t customer
t
activities
ti iti
– Uses data to conduct analytical activities
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Customer Relationship
p Management
g
Software (cont’d.)
Customer Relationship
p Management
g
Software (cont’d.)
• CRM software source
• Basic CRM
– Companies
p
create their own
– Uses customer information to sell more goods or
services
• May use outside consultants and own IT staffs
– Most companies likely to buy CRM software package
– Oracle Siebel CRM Applications
• Advanced
Ad
d CRM
– Delivers extremely attractive, positive customer
experiences
• Leading CRM software provider
– SAP CRM: another vendor
– Costs: $25,000 to millions of dollars
• CRM business importance
p
– Maintaining customer loyalty
– Maintaining positive,
positive consistent contacts at the
purchasing company
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• New developments
p
in CRM software market
– Companies offering software for use on their Web site
– Example: Salesforce.com
Salesforce com
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Customer Relationship
p Management
g
Software (cont’d.)
• 1996 to 2000
– Early days of CRM software implementation
– Tool for changing overall customer strategy
– Millions of dollars; bad experience
• 2000 through
g 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
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Supply
pp y Chain Management
g
Software
(cont’d.)
S
Supply
l Ch
Chain
i M
Managementt S
Software
ft
• Two major firms offering SCM software
• Companies coordinate planning and operations:
– i2 Technologies
g
and JDA Software
– With industry supply chains partners
• Two general function types: planning and execution
• SCM planning software
– Develops
p coordinated demand forecasts
• i2 Technologies product: RHYTHM
– Components managing demand planning,
planning supply
planning, demand fulfillment
• Most
M t supply
l chain
h i managementt software
ft
• Information from each participant in supply chain
– Developed for manufacturing firms
• SCM execution software
• Manage inventory purchases, manufacturing processes
– Tasks: warehouse and transportation management
• JDA Software
– Successful line of software products for managing
retail order entry and sales side of inventory control
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Supply
pp y Chain Management
g
Software
(cont’d.)
82
C t t Management
Content
M
t Software
S ft
• JDA Software (cont’d.)
• Content management software
– 2006: JDA Software purchased Manugistics
– Now JDA Software
– Controls large amounts of text
text, graphics
graphics, media files
• Rise of wireless devices
• Manages every operation in the supply chain
– Content management even more important
• Cost of SCM software implementations
• Businesses customize Web pages
p g
• Content management software
– Varies tremendously
• Depends on number of locations in the supply chain
– Test before committing
– Example: retailer with 500 stores
• Ensure straightforward software procedures for
performing regular maintenance
• Software should facilitate typical content creation tasks
• Pay between $3 million and $10 million
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84
Content Management
g
Software
(cont’d.)
K
Knowledge
l d M
Managementt S
Software
ft
• Companies providing content management software
– As components in other enterprise software packages
• IBM and Oracle
• Systems that help manage knowledge itself
– Rather than documentary representations of that
knowledge
• Four
F
main
i things
thi
• C
Companies providing stand-alone content
management software
–
–
–
–
– EMC and Open Text Corporation
• Software costs
– Between $100,000 and $500,000
Collect and organize information
Share information among users
Enhance ability of users to collaborate
Preserve knowledge gained through information use
• For future users benefit
• Customization,
C t i ti
configuration,
fi
ti
iimplementation
l
t ti costs
t
– Three or four times the cost of software
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E-Business, Eighth Edition
Knowledge
g Management
g
Software
(cont’d.)
Summary
• Includes tools to read:
• Small, midsize, large businesses
– Electronic documents
documents, scanned paper documents
documents, e
email messages, Web pages
• Includes
I l d powerful
f l search
h ttools
l
– 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,
Software CustomerVision
• Costs: $10,000 to $1 million or more
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87
– Electronic commerce
• Software functions, selection decisions
• Host
H t provider
id considerations
id ti
• Key elements of electronic commerce software
• Web services implementation
– Basic CSP and mall-style
mall style hosting services
– Electronic commerce software packages
• Special
S
i l needs
d off midsize
id i and
d llarger b
business
i
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