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8/12/2019 Chapter 4, Ecommerce
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Copyright 2009 Pearson Education, Inc. Publishing as PrenticeHall
Slide 4-2
Copyright 2009 Pearson Education, Inc.
E-commerce
Kenneth C. LaudonCarol Guercio Traver
Business. technology. society.
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Copyright 2009 Pearson Education, Inc. Publishing as PrenticeHall
Slide 4-3
Copyright 2009 Pearson Education, Inc.
Chapter 4
Building an E-commerce Web Site
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Building an E-commerce Site:
A Systematic Approach
Most important management challengesin building a successful e-commerce site
are:Developing a clear understanding ofbusiness objectives
Knowing how to choose the righttechnology to achieve those objectives
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Pieces of the Site-Building Puzzle
Main areas where you will need to makedecisions in building a site include:
Human resources and organizational
capabilitiescreating a team that has theskill set to build and manage a successfulsite
HardwareSoftware
Telecommunications
Site desi n
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Copyright 2009 Pearson Education, Inc. Publishing as PrenticeHall
Slide 4-6
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Planning: The Systems
Development Life Cycle
Methodology for understandingbusiness objectives of a system anddesigning an appropriate solution
Five major steps in SDLC1. Systems analysis/planning
2. Systems design
3. Building the system
4. Testing
5. Implementation
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Web Site Systems Development Life CycleFigure 4.2, Page 203
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Identifying Business Objectives,
System Functionality, and
Information RequirementsBusiness objectives:
List of capabilities you want your site to have
System functionalities:
List of information system capabilities needed
to achieve business objectives
Information requirements:
Information elements that system must
produce in order to achieve business
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Business Objectives, System Functionality,
and Information Requirements for a Typical E-
commerce Site
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Systems Design: Hardware and
Software Platforms
System design specification:
Description of main components of a system
and their relationship to one another
Two components of system design:Logical design
Data flow diagrams, processing functions,
databases, backup procedure.Physical design
Translate logical design into physical
components.
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Logical Design for a Simple Web
SiteFigure 4.3 (a), Page 206
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ys ca es gn or a mp e eSite
Figure 4.3 (b), Page 206
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Building the System: In-House
versus Outsourcing
Outsourcing: Hiring vendors to provideservices involved in building site
Build own vs. outsourcing:
Build your own requires team with diverse skillset; choice of software tools; both risks andpossible benefits
Host own vs. outsourcing Hosting: Hosting company responsible for
ensuring site is accessible 24/7, for monthlyfee
Co-location: Firm purchases or leases Webserver (with control over its operation), but
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Choices in Building and Hosting
Figure 4.4, Page 207
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Testing
Unit testing
Testing suits program modules one at a time
System testing
Testing the site as a whole, in a way the typical user
will use
Acceptance testing
Verify according to business objectives
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Implementation, and
Maintenance
Implementation and maintenance:
Maintenance is ongoing
Costs of maintenance parallel todevelopment costs
Benchmarking: Comparing site to
competitors in terms of response
speed, quality of layout, and design
Slide 4-17
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Factors in Web Site Optimization
Figure 4.7, Page 213
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Websites Budgets
How much you spend on a website depends
on what you want to do it.
Si l M lti ti d W b
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Simple versus Multi-tiered Web
Site Architecture
System architecture:
Arrangement of software, machinery, and
tasks in an information system needed to
achieve a specific functionality
Two-tier architecture
Web server and database server
Multi-tier architecture
Web application servers
Backend, legacy databases
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Two-Tier E-commerce Architecture
Figure 4.9(a), Page 216
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Multi-tier E-commerce Architecture
Figure 4.9(b), Page 216
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Web Server Software
All e-commerce sites require basic Webserver software to answer HTTP requests
from customers
Apache
Leading Web server software (50% of
market)
Works only with UNIX, Linux OSs
Microsofts Internet Information Server (IIS)
Second major Web server software (35% of
B i F ti lit P id d b
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Basic Functionality Provided by
Web Servers
Table 4.3, Page 218
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Site Management Tools
Basic site management toolsIncluded in all Web servers
Verify that links on pages are still valid
Identify orphan files
Third-party software and services for
advanced site managementMonitor customer purchases, marketing
campaign effectiveness, etc.
e.g. WebTrends
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Dynamic Page Generation Tools
Dynamic page generation:Contents of Web page stored as objects in database
and fetched when needed
Common tools:
CGI (Common Gateway Interface)ASP (Active Server Pages)JSP (Java Server Pages)
AdvantagesLowers menu costsPermits easy online market segmentationEnables cost-free price discriminationEnables Web content management system (WCMS)
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Application Servers
Web application servers:
Provide specific business functionalityrequired for a Web site
Middleware
Isolate business applications from Web
servers and databasesSingle-function applications increasingly being
replaced by integrated software tools thatcombine all functionality needed for e-commerce site
Application Servers and Their
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Application Servers and Their
Functions
E M h t S
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E-commerce Merchant Server
Software Provides the basic functionality for online salesOnline catalog
Shopping cart
Credit card processing Merchant server software packages:
Offer integrated environment
E-commerce merchant servicese.g. Yahoos Small Business Merchant Solutions
Open source Web building tools:
e.g. Apache Web server, MySQL, PHP, PERL
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Online catalog
List of products available on a website
It allows shopper to set aside desired
purchases in preparation for checkout, review
what they have selected, edit their selections
as necessary, and then actually make thepurchase by clicking a button.
Shopping cart
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Choosing an E-commerce Suit
Key factors to consider are:
Functionality
Support for different business models
Business process modeling tools Visual site management tools and reporting
Performance and scalability
Connectivity to existing business systems
Compliance with standards
Global and multicultural capability
Local sales tax and shipping rules
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