Chapter 12
Building E-Commerce
Applications
and Infrastructure
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Learning Objectives
Describe the landscape and framework of EC
application development
Describe the major EC applications and list their
major functionalities
Describe the EC architecture development
process
List the EC application development options and
the approaches for option selection
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Learning Objectives (cont.)
Describe the major activities in system analysis
and design
Describe the role of application service providers
(ASPs)
Describe catalogs, Web servers, carts, chatting,
and telephony for EC
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Learning Objectives (cont.)
Understand the issue of connecting EC
applications to databases, other
applications and networks, and to business
partners
Describe site usability and management
Describe the process of storefront
development
Build a simple storefront using templates
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Building EC Applications:
Some Examples
Wine.com
Simple, straightforward navigation from one page
to the next
Electronic catalog of products searchable with a
variety of parameters
Virtual shopping cart
Live “get an answer to your question”
Secure payment
Credit card
CyberCash
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Building EC Applications:
Some Examples (cont.)
Wine.com (cont.)
Focus on content and customer convenience
Personal profiles so customers can view
records of their purchases
Search engine for finding products and prices
on the site
Monthly program—customers receive selection
of wines
Shipment management feature
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Building EC Applications:
Some Examples (cont.)
Wine.com (cont.)
Focus on content and customer convenience
Virtual sampler sets
Tasting charts provide graphic
representation of flavor profile for each
wine
Other services including expert advice
Member of ShopperConnection—network of
retail sellers with links among member sites
(ShopperConnection no longer in business)
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Building EC Applications:
Some Examples (cont.)
United Parcel Service (UPS) services the
masses
Online package tracking saved the company $2
per customer service phone call ($ millions
annually)
Site provides customers information on
Cost
Transit time
Location of nearest drop off facility
Scheduling package pickup
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Figure 12-2
GM’s TradeXchange
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Building EC Applications:
Some Examples (cont.)
General Motor’s TradeXchange
Participant in Commerce One’s Global Trading
Web
TradeXchange uses Commerce One’s software
and integrated components from other vendors
I2 Technology’s RHYTHM for better
collaboration
VEO’s XML component for better
communications
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Building EC Applications:
Some Examples (cont.)
General Motor’s TradeXchange (cont.)
CommerceBid for B2B auction and reverse
auctions
Partnership with Empowerment Foundation
and Direct Sourcing Solutions to help minorityowned suppliers compete
PriceWaterhouseCoopers to provide EC
services for the exchange
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Figure 12-3
EC Application Development Process
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Landscape and Framework of
EC Application Development
Development process
Step 1: EC architecture creation--systems
analysis approach
Step 2: Select a development option
Step 3: Installing, connecting, and more
Step 4: Deployment
Step 5: Operation and maintenance
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Landscape and Framework of
EC Application Development (cont.)
Project management
Development process is complex and must be
properly managed
Team formed to manage the process and
vendors
Collaborations with business partners is critical
Appropriate management includes periodic
evaluations of system performance
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Major EC Applications
and Their Functionalities
A storefront—built on seller’s server
B2C storefronts
Discover, search and compare products
Select product ad negotiate price
Aid in evaluation of products and services
Payment of purchase and order processing
Order confirmation
Guest book for comments and contacts
Credit verification system
Arrange delivery (tracking)
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Major EC Applications
and Their Functionalities (cont.)
A storefront—built on seller’s server
Suppliers’ sell-side in B2B
Personalized catalogs
B2B payment gate
Electronic contract negotiation
Product configuration
Ability to use m-commerce
Affiliate program capabilities
Integration with corporate back-end systems
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Major EC Applications
and Their Functionalities (cont.)
A storefront—built on seller’s server—sell-side
auctions
E-procurement and reverse auctions
Personalized aggregation of catalogs
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Major EC Applications
and Their Functionalities (cont.)
Enterprise portals
Personalized pages
Security and privacy
protection
Integration capabilities
Searching and indexing
Modularity
Performance caching
Openness
Polls and evaluations
E-mail service
Servers
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Major EC Applications
and Their Functionalities (cont.)
Exchanges
Collaboration services
Community services
Web-automated
workflow
Integrated business
process solutions
Data mining
Transaction flow
Language translation
Central coordination of
global logistics
Integration services
Negotiation
mechanisms
Comprehensive links
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Developing an EC Architecture
The 6 steps of development are:
Step
Step
Step
Step
Step
Step
1:
2:
3:
4:
5:
6:
Define
Define
Define
Define
Define
Define
business goals and vision
the information architecture
data architecture
your application architecture
the EC technical architecture
the organization architecture
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Development Strategies for
EC Applications
Buy the applications (turnkey approach)
Disadvantages
Advantages
Availability of many
off-the-shelf packages
Saves time
Requires few
dedicated personnel
Not the first and only
user
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Software doesn’t
exactly fit needs
Loss of control over
improvements and
versions
Difficult to integrate
Vendors may drop
product or go out of
business
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Development Strategies for
EC Applications (cont.)
Lease
Types of leasing vendors
Lease the application from an outsourcer and
install it on company premises
Use an application system provider (ASP)
In-house development: insourcing
Development approaches
Build from scratch
Build from components
Prototyping methodology
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Development Strategies for
EC Applications (cont.)
Other development options
Join an e-marketplace or exchange
Join a third-party or reverse auction
Joint ventures
Join a consortia
Hybrid approach
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Outsourcing and Applications
Service Providers
Outsourcing
Internet malls
ISPs
Telecommunication companies
Software houses
Outsourcers and others
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Applications Service Providers
Benefits to the ASP vendor
Companies generate revenues from sources
other than connectivity and transport
Lucrative Web site hosting
Web design consulting
Hosted applications with access charges
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Applications Service Providers (cont.)
Benefits to the leasing companies
Saves time and various expenses in the initial
development stage (i.e., labor costs)
Reduces software maintenance, upgrading applications,
and training time
Reduces time-too-market
Enhances ability to adapt to changing market conditions
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Table 12-1
Benefits and Risks of Using an ASP
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Criteria for Selecting a
Development Approach
Criteria
Functionalities of
development packages
and criteria of choice
Information
requirements
User friendliness
Hardware and software
resources
Installation
Maintenance services
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Security
Vendor quality and
track record
Estimating costs
Measuring benefits
Personnel
Forecasting and
planning for
technology evolution
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Criteria for Selecting a
Development Approach (cont.)
Criteria (cont.)
Scaling
Sizing
Performance
throughput
Reliability
Security
Database format and
portability
Application and data
storage
Scope of service
Support services
Integration
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System Analysis Activities and Tools
Requirements analysis
Methods for determining requirements
Joint Application Development (JAD)
Modeling approaches may be based on:
Activity/process
Use case/object-oriented
Interprocess
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System Analysis Activities
and Tools (cont.)
Component-based development
Components evolved from objects of object-oriented
methodology
They are much larger than objects and now serve as
plug-and-play building blocks for developing large
complex systems
Reasons for using components
Code reusability
Support for heterogeneous infrastructures and
platforms
Rapid assembly of new business applications
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System Analysis Activities
and Tools (cont.)
Enterprise application integration
Aims to integrate applications (including
internal applications) that have been
developed by different organizations
If source code is unavailable (altering the
application is not possible), EAI becomes the
glue between the applications
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Figure 12-6
Levels of Enterprise Integration
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Electronic Catalogs, Shopping Carts
Electronic catalogs, shopping carts, and
merchant servers
Templates or wizards for creating storefronts
and catalog pages
E-shopping carts
Web-based order forms
Database for maintaining product descriptions,
etc.
Integration with 3rd party software—taxes,
shipping, etc.
Electronic payment systems
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Web Chatting, Webcasting,
and Internet Telephony
Webcasting
Web chatting
Communication
centers
Customer service
Community
discussion
Video chat
Text streams
Ambient Webcasts
Streaming audio
Internet telephony
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EC Suites
Suite—combined set of tools giving builder
and users:
Greater flexibility
Specialization
Customization
Integration
Support for complete functionality
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EC Suites
IBM WebSphere Commerce Suite
Web server for catalog management
Application server for security
Reverse auctions
Exchanges
Contracts
EC suite server sell-side ordering and auctions
Database server
HTTP interface
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IBM WebSphere Commerce Suite
Delivers an open, standards-based solution
platform with integrated components for
building e-marketplace
Facilitates operational efficiency and high
return on investment
Uses Java and XML technologies to
aggregate sellers’ catalogs
Provides optimal customization and flexibility
Incorporates e-marketplace functionality
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Figure 12-10
Web to Database Connection
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Connecting to Databases, Legacy
Systems, and Business Partners
Connecting to business partners
Critical to success of EC, especially for B2B
applications
Issues to be dealt with:
Connectivity
Compatibility
Security
Scalability
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Vendor and Software Selection
Steps in selecting software package
1:
2:
3:
4:
5:
Identification of suitable packages
Determination of detailed evaluation criteria
Evaluation of candidate packages
Choosing a package
Negotiating the contract
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Vendor and Software Selection (cont.)
Identification of suitable packages
Sources of information about packages
Hardware vendors
User groups
Technical and trade publications
Consultants experienced with an application
area or industry
Friends and competitors
Preliminary evaluation criteria to eliminate all but
a few of the most promising packages
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Vendor and Software Selection (cont.)
Determination of evaluation criteria
Must determine in detail what one must know
about the packages and how important each
criteria is
Characteristics of the vendor
Functional requirements of the system
Technical requirements the software
must satisfy
Amount and quality of documentation
provided
Vendor support of package
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Vendor and Software Selection (cont.)
Determination of evaluation criteria (cont.)
Requirements for purchase (RFP) is developed
including:
Information about the vendor
How long the vendor has been in the EC
software business
Number of employees, financial and location
of its sales and support offices
First release date of system being considered
Date of last revision
List of companies using the software to
contact as references
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Vendor and Software Selection (cont.)
Determination of evaluation criteria (cont.)
Project team develops essential functional
requirements the systems must satisfy (RFP)
Mandatory requirements
Desired features
Stated as questions about the
characterizes of the package
Ease with which software can be tailored
to fit company’s current needs or
enhanced in the future
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Vendor and Software Selection (cont.)
Evaluation of candidate packages
RFP is sent to short list of qualified vendors
Responses generate massive volumes of
information for evaluation to determine
Gaps between the company’s needs
Capabilities of the proposed application
packages
To help determine which package, may use a
table (see Table 12-2)
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Vendor and Software Selection (cont.)
Criteria
Weights System A System B System C
Support for
Java standards
XML
SSL
Shoppingcart
Catalogs
Taxation
Personalization
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Vendor and Software Selection (cont.)
Choosing the package once the short list
has been prepared
Determine how the packages might be
modified to remove any discrepancies with the
company’s desired EC application
Most important factor is additional
development effort required to tailor the
system:
To company’s needs
To integrate with company’s environment
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Vendor and Software Selection (cont.)
Choosing the package (cont.)
People are likely to have to adapt to the software
Significant changes in how they do their jobs
Commitment is necessary for the system to succeed
Project team should verify that:
Users of the system support the decision to buy
the selected package and agree to make it work
IS people who will support the system agree
that the system will work in their environment
and that they can support is satisfactorily
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Vendor and Software Selection (cont.)
Contract negotiation (EC managers and/or IS
department)
Specifies the price of the software
Determines the type and amount of support to be
provided
Integral part of purchase process
Company’s power is in being able to choose
another vendor’s product
Concessions from vendor must be negotiated
before final decision on which package to buy
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Vendor and Software Selection (cont.)
Service level agreements (SLAs)
Formal agreements regarding the division of
work between a company and its vendors
SLA can achieve facilitation and coordination
by:
Defining the partners’ responsibilities
Providing a framework for designing
support services
Allowing the company to retain as much
control as possible over their own system
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Vendor and Software Selection (cont.)
Service level agreements (SLAs) (cont.)
Four steps for establishing SLA
Defining levels
Dividing computing responsibility at each
level
Designing the details of the service levels
Implementing service levels
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Site Management and Usage Analysis
Implementation of evaluation devices
Collecting and analyzing statistics
Hits per pageview
What can you get from pageviews
Pageviews by time bucket
Pageviews by customer logging status
Pageviews by referrer
Pageviews by visitor’s hardware platform,
OS, browser
Pageviews by visitor’s host
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Site Management and
Usage Analysis (cont.)
Usability: the measure of quality of a
user’s experience when interacting with a
product or system
Ease of learning
Efficiency of use
Memorability
Error frequency and severity
Subjective satisfaction
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Site Management and
Usage Analysis (cont.)
E-commerce management tools
Patrol for e-business management
Measures Web response time
Firewall administration
Application servers:
Patrol for Microsoft
Open market
Netscape
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Site Management and
Usage Analysis (cont.)
E-commerce management tools (cont.)
MainView for e-business management
Manages mainframe-based EC
applications
Monitors mainframe network connections
Systems administration
Service assurance center for e-business—
methodology, products, and services designed
to optimize performance and availability of
business applications
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Process of Storefront Development
Issues to be addressed before
choosing the proper solution include:
Customers
Merchandising
Sales service
Promotion
Transaction processing
Marketing data and analysis
Branding
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Process of Storefront Development (cont.)
Design guidelines
Availability and fast
loading
Simplicity of site
structure
Use of shopping cart
Good navigation
Globalization
Maximizing ways to
order and pay
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Establishing
credibility
Offering
personalized service
Pre- and post sales
support
Realistic pricing
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Managerial Issues
It is the business issues that count
In-house or outsource
Consider an ASP
Do a detailed EC architecture study
Security and ethics
Choosing a vendor/software
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