E-Commerce Software an industry perspective… …Sunil Bhargava Contract CTO

E-Commerce SoftwareE-Commerce Software

an industry perspective…

…Sunil Bhargava

Contract CTO

Personal BackgroundPersonal Background

Started undergrad at GWU at 15– BS – Computer Engineering, 1987– MS – Software and Systems, 1989– D.Sc. – Computer Science, abandoned in 1992

CTO for many web-technology companies– Spent last year at OneSoft, local e-commerce

software and application services provider

Contact: Sunil@bhargava.com

What is e-CommerceWhat is e-Commerce

e-Commerce has become e-Business

Business automation– Web-based by definition– Application by nature

Involving the whole commerce chain– manufactures and customers– suppliers and buyers

The more traditional definitions?The more traditional definitions? Retail (B2C) - Sell-side

– Market peaked last year and still dropping– Bill presentation and payment on the rise

Procurement (B2B) - Buy-side or Sell-side– Market plateau’d last year but stable– Different from when business act as consumers

Collaborative Commerce (B2B2C) - Sell-side– Exploiting and assist the existing channels

Market places - Buy-side and sell-side– Emulate all benefits of real-world, single-product marketplaces

Retail (B2C)Retail (B2C)

Value Proposition– Disinter-mediate the retail channel– Better shopping experience

Personalized up sells Comparison shipping

– Evaporating myth Wider net (anytime; anywhere); lower cost; viral sales

Technical Challenges – International commerce– Multi-lingual content management– Cost effective distribution and fulfillment

Procurement (B2B) Procurement (B2B)

Value Proposition – Disinter-mediate brokers and traders– Buy side

Implementers are large customers Saves money by reducing inventory and purchase costs

– Sell side Implementers are targeting their medium customers Reduces cost of sale and increases revenue per customer

Technical Challenges– International commerce – Automation of custom, non-uniform processes

Collaborative Commerce Collaborative Commerce (B2B2C)(B2B2C)

Value Proposition– Exploit and extend existing channels

Direct market the brand but sell thru traditional channels Enable B2C solutions for franchises and dealers

– Complex selling Value added products and services combinations

Technical Challenges– Managing conflict with e-initiatives of the channel– Supporting variety of business processes, logic, and rules

Market Places (Bs2Bs)Market Places (Bs2Bs)

Value Proposition– Private exchanges

Bring Shopping to the traditionally Buying focus

– Public exchanges Exponential growth in the market place

Technical Challenges– Custom catalog management– Custom and dynamic price management– Complex payment processing support

What is e-commerce Software?What is e-commerce Software?

Front-end– For Visitors and Customers

Web-based by definition

Backend– For enterprise business managers

Merchandisers, Account Mangers, Customer Support, etc.

Middleware– To interface with existing systems

Customer, Inventory, Credit, Payment and Order Processing systems

e-Commerce Front-ende-Commerce Front-end

Web Application Server

Functionality– Personalization and Profiling– Complex, Dynamic Content Presentation

Process Support– Shopping Process– Buying Process

e-Commerce Backende-Commerce Backend

Content Management– Merchandizing– Catalog management– Price and on-line collateral management

Process Support– Customer Support– Anomaly management

Payment or Order processing hiccups

e-Commerce Middlewaree-Commerce Middleware

Payment Processing– Customer specific credit, purchase orders, etc. – Electronic payment including EDI and credit cards

Order Processing– Interface to proprietary, custom enterprise systems– e-enabled systems of large warehouses– e-Services that provide Order Distribution

Inventory Management– Soft and hard reserve functionality– Direct access to specific inventory

The critical success factorsThe critical success factors

Backend System Management Functionality– Support for workflow and process management– Appropriate use of technology for process support– Access control in content management– Business rules in anomaly management

On-line collateral Management– Images, Audio, or Video; for virtual examination– Structured; for comparison shopping

What’s missing?What’s missing?

Community – Polls, Message Boards, Chats, etc.

Services– Fee email, Consumer news and information, etc.

Marketing Campaign Management– Referrals, Affiliates, Banner ads, Emails, etc.

Hot features of the day– ‘Amazon innovations’– Mobile commerce– Shopping robots

What about services?What about services?

Shopping PortalsProcess Re-engineeringe-Services

– Branding– On-line collateral development and management– Search engine placement optimization– Efficiency improvements in web delivery

The e-commerce leadersThe e-commerce leaders

Almost everyone does almost anything

Retail– BroadVision, ATG, Blue Martini, MS Commerce Server

Procurement (buy-side)– CommerceOne, Clarus

Procurement (sell-side)– I2, Manugistics

Collaborative (sell-side)– Click Commerce

Market places– Ariba, VerticalNet

Other important software playersOther important software players Net Perceptions

– Business intelligence for Commerce

eShare– Community and Customer Communication

TaxWare– Almost universal Tax Computations

CyberSource, CyberCash– Credit card authorization with value-added services

webMethods– With ActiveWorks a formidable middleware vendor

Other important service playersOther important service players

OrderTrust– Payment and Order routing

Double-click– Banner ad provider

VeriSign– SSL encryption certificaties

Core Solution RequirementsCore Solution Requirements

Database– Oracle– Microsoft SQL Server

Application Servers– With integrated or separate web server– General purposes AppServers

BEA’s WebLogic, IBM’s WebSphere, Microsoft’s ASP

– Specific AppServers BroadVision, ART Technology Group, Oracle

The vender we love to hateThe vender we love to hate

Front-end: IIS– Web Server– Application Server (ASP)

Choice of languages but scripted

– .Net support Easier deployment of services; complied code

Middleware: BizTalk– Standards (XML) based inter-application

communication broker

Microsoft ContinuedMicrosoft Continued

Backend: Commerce Server– Catalog Management– Customer (profile Management)– Targeting Content to Customers– BizDesk

Campaign management Catalog, Customers, Content management Order Processing including shipping, tax, returns

processing, etc. Traffic, Product view, and product purchase analysis

Important TechnologiesImportant Technologies Everything from the two 400 lbs gorillas

– Oracle– Microsoft

DHTML– Microsoft won the browser wars in e-business

XML– Microsoft’s and IBM’s support for SOAP is promising– webMethods is proving the value in inter-application

communications

Java– Server side – J2EE, JavaBeans, JSP

QuestionsQuestions

Responses

Parting thoughtsParting thoughts

Understand the business behind e-business

It is business application development for users outside the implementer’s company

The line between software or service is blurring