Online Chapter 11

Online Chapter 11Online Chapter 11

Infrastructure for E-Infrastructure for E-CommerceCommerce

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Learning ObjectivesLearning Objectives

Discuss the major steps in Discuss the major steps in developing an EC application.developing an EC application.

Describe the major EC Describe the major EC applications and list their major applications and list their major functionalities.functionalities.

List the major EC application List the major EC application development options along with development options along with their benefits and limitations.their benefits and limitations.

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Learning Objectives Learning Objectives (cont.)(cont.)

1.1. Describe various EC application Describe various EC application outsourcing options.outsourcing options.

2.2. Discuss the major components Discuss the major components of an electronic catalog and EC of an electronic catalog and EC application suite.application suite.

3.3. Describe various methods for Describe various methods for connecting an EC application to connecting an EC application to back-end systems and back-end systems and databases.databases.

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1.1. Describe the criteria used in Describe the criteria used in selecting an outsourcing vendor selecting an outsourcing vendor and package.and package.

2.2. Discuss the value and technical Discuss the value and technical foundation of Web services in EC foundation of Web services in EC applications.applications.

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1.1. Understand the value and uses Understand the value and uses of EC application log files.of EC application log files.

2.2. Discuss the importance and Discuss the importance and difficulties EC application difficulties EC application maintenance.maintenance.

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Tracking United ParcelTracking United ParcelService ShipmentsService Shipments

The ProblemThe ProblemSince 1907 United Parcel Service Since 1907 United Parcel Service (UPS) has been in the package (UPS) has been in the package distribution business distribution business

It is the world’s largest package It is the world’s largest package distribution company, transporting distribution company, transporting over 3 billion parcels and documents over 3 billion parcels and documents each year in over 200 countries.each year in over 200 countries.

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Tracking United ParcelTracking United ParcelService Shipments Service Shipments (cont.)(cont.)

UPS provides the means for UPS provides the means for customers to track their shipments customers to track their shipments to determine the status and to determine the status and whereabouts of a particular packagewhereabouts of a particular package

In the past, this was done primarily In the past, this was done primarily over the telephoneover the telephone

Customers would call UPS with the Customers would call UPS with the tracking number of their shipmenttracking number of their shipment

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An operator would look up the status An operator would look up the status of the shipment in the UPS database of the shipment in the UPS database and relay the information to the and relay the information to the customercustomer

Servicing these calls cost an Servicing these calls cost an estimated $2 per callestimated $2 per call

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The SolutionThe SolutionUPS created a Web site (UPS created a Web site (ups.comups.com) ) that enabled customers to:that enabled customers to:

track their shipments onlinetrack their shipments online

determine the cost and transit time determine the cost and transit time for delivery of a packagefor delivery of a package

schedule a package for pickupschedule a package for pickup

locate the nearest drop-off facilitylocate the nearest drop-off facility

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These online facilities are accessed These online facilities are accessed from the UPS homepagefrom the UPS homepage

The customer clicks the “Tracking” The customer clicks the “Tracking” tab at the top of the homepagetab at the top of the homepageThis takes the customer to an This takes the customer to an online form where the customer online form where the customer simply enters the tracking number simply enters the tracking number and then hits the “Track” buttonand then hits the “Track” buttonThe customer receives precise The customer receives precise information about the location of information about the location of the designated shipmentthe designated shipment

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The front end of the UPS Web site The front end of the UPS Web site is simple, but the back-end is simple, but the back-end processing used to handle a processing used to handle a tracking request is more tracking request is more complicated complicated

Requests are handed off to one of a Requests are handed off to one of a handful of Web servers handful of Web servers

This server passes the request to This server passes the request to the appropriate application serve the appropriate application serve

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The application server passes the The application server passes the request to an IBM AS/400 computer request to an IBM AS/400 computer attached to the UPS tracking attached to the UPS tracking database (the largest transaction database (the largest transaction database in the world—20 terabytes database in the world—20 terabytes of data of data The mainframe performs the The mainframe performs the database search for the status database search for the status informationinformationThen it is passed back up the line Then it is passed back up the line through the various servers to the through the various servers to the customer’s browser customer’s browser

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The ResultsThe ResultsThe UPS site services over 4 million The UPS site services over 4 million online tracking requests per dayonline tracking requests per day

It keeps UPS competitive with other It keeps UPS competitive with other shipping companies that also offer shipping companies that also offer online tracking services and online tracking services and customer information (FedEx) customer information (FedEx)

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UPS now offers customers the option UPS now offers customers the option of tracking their packages through of tracking their packages through wireless devices (cell phones, PDAs, wireless devices (cell phones, PDAs, and Web-enabled pagers and Web-enabled pagers Web pages have been modified to Web pages have been modified to support the particular wireless support the particular wireless device being used device being used Specialized servers are used to Specialized servers are used to deliver the pages over the wireless deliver the pages over the wireless communication networks communication networks

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UPS (UPS (ec.ups.comec.ups.com) offers a set of e-) offers a set of e-commerce solutions and a commerce solutions and a technology infrastructure that technology infrastructure that enables other companies to enables other companies to incorporate UPS’ online:incorporate UPS’ online:

order entryorder entry

ShippingShipping

tracking capabilitiestracking capabilities

Example: Example: Amazon.comAmazon.com

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The company also offers e-The company also offers e-commerce tools and services for commerce tools and services for managing an enterprises’ overall managing an enterprises’ overall supply chain supply chain

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What we can learn …What we can learn …There is more to an EC Web site There is more to an EC Web site than meets the eyethan meets the eye

Behind the scenes of virtually every Behind the scenes of virtually every e-commerce site, a number of e-commerce site, a number of hardware and software components hardware and software components are supporting these applicationsare supporting these applications

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The Development ProcessThe Development Process

Several options are available for developing an EC site

The components making up a Web site come from a small number of vendors or from several different vendorsSmall storefronts with a few key components can be developed with HTML, Java, or another programming language

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The Development The Development Process Process (cont.)(cont.)

Application service provider Application service provider (ASP):(ASP): A company that provides A company that provides business applications to users for business applications to users for a small monthly feea small monthly feeThe cost of developing an EC site can run in the thousands of dollars

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To ensure success, a systematic development process is needed to create, implement, and maintain a siteA project team is also needed to manage the development process and the relationships with outside vendors and business partnersThe development process includes four steps

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Step 1:Step 1: Creating an EC Creating an EC architecturearchitecture

EC architecture:EC architecture: A plan for A plan for organizing the underlying organizing the underlying infrastructure and applications of a infrastructure and applications of a site site

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The plan includes:The plan includes:Business goals and vision for the Business goals and vision for the sitesiteInformation and data required to Information and data required to fulfill the goals and vision fulfill the goals and vision Application modules that will Application modules that will deliver and manage the information deliver and manage the information and data and data Specific hardware and software on Specific hardware and software on which the application modules will which the application modules will runrunHuman resources and procedures Human resources and procedures for implementing the architecturefor implementing the architecture

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Step 2:Step 2: Selecting a development Selecting a development option option

EC applications can be:EC applications can be:developed in-housedeveloped in-house

outsourced to another partyoutsourced to another party

some combination of both some combination of both

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An application built in-house can be An application built in-house can be built entirely from scratch or built entirely from scratch or commercial products can be used commercial products can be used and modified to meet specific needs and modified to meet specific needs

An outsourced application can be An outsourced application can be run:run:

entirely by an ASPentirely by an ASP

on a third-party marketplace on a third-party marketplace

on another company’s Web site on another company’s Web site

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A company needs to participate in A company needs to participate in the architectural designthe architectural design

At the end of this step, an At the end of this step, an application is built (or purchased) application is built (or purchased) and ready to be installedand ready to be installed

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Step 3:Step 3: Installing, testing, and Installing, testing, and deploying EC applicationsdeploying EC applications

Connecting the application to back-Connecting the application to back-end databases, to other end databases, to other applications, and to other Web sites applications, and to other Web sites

A series of tests is requiredA series of tests is required

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Unit testing:Unit testing: Testing application software Testing application software modules one at a timemodules one at a time

Integration testing:Integration testing: Testing the Testing the combination of application modules acting combination of application modules acting in concertin concert

Usability testing:Usability testing: Testing the quality of the Testing the quality of the user’s experience when interacting with a user’s experience when interacting with a Web siteWeb site

Acceptance testing:Acceptance testing: Determining whether Determining whether a Web site meets the original business a Web site meets the original business objectives and visionobjectives and vision

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Step 4:Step 4: Operation and Operation and maintenancemaintenance

A site is continually updated A site is continually updated new products need to be added to new products need to be added to the catalogthe catalogprices need to be changedprices need to be changednew promotions need to be run new promotions need to be run

These changes and updates undergo These changes and updates undergo the same testing procedures used the same testing procedures used during the installation process during the installation process

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Usage patterns and performance Usage patterns and performance need to be studied to determine need to be studied to determine which parts of the underlying which parts of the underlying applications should be modified or applications should be modified or eliminated from the siteeliminated from the site

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Major EC Applications and Major EC Applications and Their Functionalities Their Functionalities (cont.)(cont.)

Three interrelated subsystems of an Three interrelated subsystems of an electronic storefront:electronic storefront:– A shopping cart is usually A shopping cart is usually – A transaction system for processing A transaction system for processing

orders, payments, and other aspects of orders, payments, and other aspects of the transactionthe transaction

– A payment gateway that routes payments A payment gateway that routes payments through existing financial systems through existing financial systems primarily for the purpose of credit card primarily for the purpose of credit card authorization and settlementauthorization and settlement

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Supplier sell-side B2B sites Supplier sell-side B2B sites enable one business to purchase goods and services from another and include:

Personalized catalogs and Web pages for all major buyersA B2B payment gateElectronic contract negotiation featuresProduct configuration by customers (e.g., Cisco or Dell)Affiliate program capabilitiesBusiness alerts (e.g., special sales)

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E-procurementE-procurementAggregating catalogsAggregating catalogs

Search engine for locating items with particular characteristicsComparison engine for alternative vendorsOrdering mechanismBudget and authorization featureUsage comparisons (among various departments)Payment mechanism (e.g., use of a purchasing card)

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Reverse auctions Reverse auctions buyers list the items they wish to purchase and sellers bid to provide those items at the lowest priceSites provide:

CatalogSearch enginePersonalized pages for biddersReverse auction mechanismsFacilities to deal with request for quotes (RFQs)

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Reverse auction sReverse auction sites provide (cont.):

Ability to bid dynamicallyAutomatic vendor approval and workflowElectronic collaboration with trading partnersStandardization of RFQ writingSite mapMechanism for selecting suppliers

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Reverse auction sReverse auction sites provide (cont.):

Automatic matching of suppliers with RFQsAutomatic business process workflowAbility for bidders to use m-commerce for biddingAutomated language translation

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Exchanges are Exchanges are e-marketplaces that tie many buyers to many suppliers combining the functionalities of buy-side, e-procurement, and auction sites

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Capabilities of exchanges also Capabilities of exchanges also include:include:

Collaboration services Community servicesWeb-automated workflowIntegrated business process solutionsCentral coordination of global logisticsIntegration services

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Capabilities of exchanges also Capabilities of exchanges also include:include:

Data mining, customized analysis and reporting, real-time transactions, trend and customer behavior trackingTransaction flow managersNegotiation mechanismsLanguage translationComprehensive links to related resources

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Development Options forDevelopment Options forEC ApplicationsEC Applications

Insourcing: In-house development of applications

Can be time-consuming and costlyMay lead to EC applications that better fit an organization’s strategy and visionRequires specialized IT resources

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Development Options forDevelopment Options forEC Applications EC Applications (cont.)(cont.)

Buy the applications: turnkey approach involves:

Buying a commercial packageInstalling itStarting it up

Buying a commercial package requires much less time and money than in-house development

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Major advantages of the turnkey Major advantages of the turnkey approach:approach:

Many different types of off-the-shelf software are availableIt saves time and money (compared to in-house development)It requires fewer personnelThe company knows what it is getting before it invests in the productThe company is not the first and only user

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Major disadvantages of the turnkey Major disadvantages of the turnkey approach:approach:

Software may not meet the company’s needsSoftware may be difficult or impossible to modifyThe company may experience loss of control over improvements and new versionsOff-the-shelf applications can be difficult to integrate with existing systemsVendors may drop a product or go out of business

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Leasing Leasing an application package can result in substantial cost and time savings

Advantageous for:Small to medium enterprises (SMEs)

Large company Large company wants to experiment with a package

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How leasing can be How leasing can be accomplishedaccomplished

– Lease the application from an outsourcer and then install it on the company’s premises

– Lease the application from an ASP that hosts the application at its data center

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Other development optionsOther development optionsE-marketplaces, exchanges, auctions, or reverse auctionsJoint ventures and consortiaInternet mallsISPsTelecommunication companies

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Criteria for Selecting aCriteria for Selecting aDevelopment ApproachDevelopment Approach

FlexibilityInformation requirementsUser friendlinessHardware and software resourcesInstallationMaintenance servicesVendor quality and track record

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Criteria for Selecting aCriteria for Selecting aDevelopment Approach Development Approach

(cont.)(cont.)Estimating costsPersonnelTechnological evolutionScaling

Scalability:Scalability: How big a system can grow in How big a system can grow in various dimensions to provide more various dimensions to provide more service; measured by total number of service; measured by total number of users, number of simultaneous users, or users, number of simultaneous users, or transaction volumetransaction volume

Sizing

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(cont.)(cont.)Performance

Latency: The time required to complete an operation such as downloading a Web pageThroughput: The number of operations completed in a given period of time; indicates the number of users that a system can handle

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(cont.)(cont.)ReliabilitySecurity

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Third-Party EC Third-Party EC Components and SuitesComponents and Suites

Electronic catalog:Electronic catalog: The virtual-world The virtual-world equivalent of a traditional product equivalent of a traditional product catalog; contains product descriptions catalog; contains product descriptions and photos, along with information and photos, along with information about various promotions, discounts, about various promotions, discounts, payment methods, and methods of payment methods, and methods of deliverydelivery

Merchant server software:Merchant server software: Electronic Electronic catalogscatalogs

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Third-Party EC Third-Party EC ComponentsComponents

and Suites and Suites (cont.)(cont.)Merchant server software features:Merchant server software features:

Templates or wizards for creating a storefront and catalog pagesElectronic shopping cartsWeb-based order forms for making secure purchasesA database for maintaining product descriptions, pricing, and customer ordersIntegration with third-party software for calculating taxes and shipping costs and for handling distribution and fulfillment

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and Suites and Suites (cont.)(cont.)EC suites EC suites offer builders and users greater:

FlexibilitySpecializationCustomizationIntegration in supporting complete front- and back-office functionality

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and Suites and Suites (cont.)(cont.)EC suite functionality is distributed across a number of servers and databases instead of relying on a single server and database, as is done in merchant server systems

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and Suites and Suites (cont.)(cont.)Microsoft’s Commerce Server is a Microsoft’s Commerce Server is a comprehensive framework for building tailored EC solutions including:

Product Catalog SystemTargeting SystemProfiling SystemBusiness Processing Pipelines SystemBusiness Analytics System

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and Suites and Suites (cont.)(cont.)IBM’s WebSphere Commerce Suite IBM’s WebSphere Commerce Suite is designed to support B2C, B2B, or private exchange business models providing:

Order managementCollaborative filtersPortal capabilitiesLocalization supportE-couponsAdditional bundled products

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and Suites and Suites (cont.)(cont.)Oracle’s EC productsOracle’s EC products

Oracle iStoreOracle MarketingOracle iPaymentOracle QuotingOracle iSupportOracle Configurator

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Connecting to Databases Connecting to Databases and Other Enterprise and Other Enterprise

Systems Systems (cont.)(cont.)Multitiered application architecture:Multitiered application architecture: EC EC architecture consisting of four tiers: architecture consisting of four tiers: Web browsers, Web servers, Web browsers, Web servers, application servers, and database application servers, and database serversservers

Separation of functions makes it easier to change any tier (or layer) without impacting the other layersAn application server can be designed to interface or communicate with a wide variety of databases and database management systems

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Systems Systems (cont.)(cont.)

Several technologies can be used to integrate an EC application with a back-end databaseEC applications also require integration with a variety of other systems—ERP, CRM, SCM, EDI, data warehouses, and other important internal systems—both inside and outside the company

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Systems Systems (cont.)(cont.)

Enterprise application integration Enterprise application integration (EAI):(EAI): Class of software that Class of software that integrates large systems integrates large systems

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Rise of Web ServicesRise of Web Services

Most EC sites require the integration of software applications written in different programming languages and residing on different computer hardware distributed across the Internet

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Rise of Web Services Rise of Web Services (cont.)(cont.)

Existing technologies make the integration a difficult task for the following reasons:

Platform-specific objectsDynamic environmentSecurity barriers

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The role of XMLThe role of XMLWeb service:Web service: A software system identified A software system identified by a URI (uniform resource indicator), by a URI (uniform resource indicator), whose public interfaces and bindings are whose public interfaces and bindings are defined and described using XMLdefined and described using XMLBecause XML messages are text based, they can be sent over the Web using standard Web communication protocols

enhanced interoperabilityeasily passes through firewalls

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Key technologies in Web ServicesKey technologies in Web ServicesSimple Object Access Protocol Simple Object Access Protocol (SOAP):(SOAP): Protocol or message Protocol or message framework for exchanging XML data framework for exchanging XML data across the Internetacross the Internet

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Web Services Description Language Web Services Description Language (WSDL):(WSDL): An XML document that An XML document that defines the programmatic interfacedefines the programmatic interface—operations, methods, and —operations, methods, and parameters— for Web servicesparameters— for Web services

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Universal Description, Discovery, Universal Description, Discovery, and Integration (UDDI):and Integration (UDDI): An XML An XML framework for businesses to publish framework for businesses to publish and find Web services onlineand find Web services online

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A Web Service example—an A Web Service example—an airline Web site that provides consumers with the opportunity to purchase tickets online

The airline relies on car rental and hotel partners to provide Web service access to their systems allowing customers to rent cars and reserve hotel rooms by logging on to the airline site saving time and money

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Web Services platformsWeb Services platformsMicrosoft.NETMicrosoft.NET

IBM’s WebSphereIBM’s WebSphere

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Web Services in the mainstreamWeb Services in the mainstreamA survey of corporate IT buyers conducted in 2002 found that close to 80% of the respondents expected to be deploying Web services by the end of 2003Among these buyers, the total spending for Web services will reach an estimated $3 billion during that same time period

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Most of these services will be deployed on existing hardware and will provide interfaces to existing applicationsSome popular sites on the Web are turning to Web services as a way of providing access to their internal systems

GoogleAmazon.com

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Google’s Google’s Web services provide a range of possibilities including:

Issuing regularly scheduled search requests to monitor the Web for new information on a subjectPerforming market research by analyzing differences in the amount of information available on different subjects over timeSearching via non-HTML interfaces, such as the command line, pagers, or visualization applications

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Amazon.com associates can use Amazon.com associates can use Amazon.com’s Web services to:

Dynamically retrieve pricesGenerate lists of productsDisplay search resultsProduce recommendation listsAdd items to the Amazon.com shopping cart directly on their Web sites

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Advantages and HurdlesAdvantages and Hurdles

Advantages of Web ServicesAdvantages of Web ServicesRely on universal, open, text-based Rely on universal, open, text-based standards that simplify the problems standards that simplify the problems posed by interoperability and lower posed by interoperability and lower the IT costs of collaborationthe IT costs of collaboration

Enable software running on different Enable software running on different platforms to communicate platforms to communicate

Promote modular programming, Promote modular programming, which enables reuse by multiple which enables reuse by multiple organizationsorganizations

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Advantages Advantages and Hurdles and Hurdles (cont.)(cont.)

Advantages of Web Services Advantages of Web Services (cont.)(cont.)

Are easy and inexpensive to Are easy and inexpensive to implement because they operate on implement because they operate on the existing Internet infrastructurethe existing Internet infrastructure

Can be implemented incrementally, Can be implemented incrementally, rather than all at oncerather than all at once

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Advantages Advantages and Hurdles and Hurdles (cont.)(cont.)

Barriers inhibiting widespread adoption of Web Services:

The standards underlying Web services are still being definedOne area where the Web services standards are not well-defined is securityHigher-level standards for encoding data are still required, especially in B2B applications

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Vendor and Vendor and Software SelectionSoftware Selection

Few organizations, especially SMEs, have the time, financial resources, or technical expertise required to develop today’s complex e-business systemsA major aspect of developing an EC application revolves around the selection and management of vendors and their software offerings

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Vendor and Vendor and Software Selection Software Selection (cont.)(cont.)

Step 1: Identify potential vendors from:

Software catalogsLists provided by hardware vendorsTechnical and trade journalsConsultants experienced in the application areaPeers in other companiesWeb searches

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Step 2: Determine the evaluation criteria including:

Characteristics of the vendorFunctional requirements of the systemTechnical requirements the software must satisfyAmount and quality of documentation providedVendor support of the package

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Request for proposal (RFP):Request for proposal (RFP): Notice Notice sent to potential vendors inviting sent to potential vendors inviting them to submit a proposal them to submit a proposal describing their software package describing their software package and how it would meet the and how it would meet the company’s needscompany’s needs

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Step 3: Evaluate vendors and packages

Determine gaps between the company’s needs and the capabilities of the vendors and their application packagesVendors and packages are given an overall score by assigning an importance weight to each of the criteria, ranking the vendors on each of the weighted criteria and then multiplying the ranks by the associated weights

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Step 4: Choose the vendor and package

Negotiate with short list of vendors to determine how their packages might be modified to remove any discrepancies with the company’s desired EC applicationOpinions of the users who will work with the system and the IT personnel who will to support the system should be considered

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Step 5: Negotiate a contractThe contract The contract specifies the price of the software and determines the type and amount of support to be provided by the vendorThe contract must include detailed specifications of the modifications requiredThe contract should describe in detail the acceptance tests the software package must pass

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Step 6: Establish a service level agreement

service level agreement (SLA):service level agreement (SLA): A A formal agreement regarding the formal agreement regarding the division of work between a company division of work between a company and its vendorsand its vendors

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Usage Analysis Usage Analysis and Site Managementand Site Management

Access log:Access log: A record kept by a A record kept by a Web server that shows when a Web server that shows when a user accesses the server; kept in user accesses the server; kept in a common log file format, each a common log file format, each line of this text file details an line of this text file details an individual accessindividual access

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Usage Analysis Usage Analysis and Site Management and Site Management

(cont.)(cont.)Access logs provide statistics that can be used for analyzing and improving marketing and advertising strategies including pageviews by:

time slotcustomers’ log-in statusreferrersvisitor’s hardware platform, operating system, browser, and/or browser versionvisitor’s host

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Usage Analysis Usage Analysis and Site Management and Site Management

(cont.)(cont.)E-commerce management tools:E-commerce management tools:

Managing the performance of a Web site is a time-consuming and tedious administrative taskBMC Corp. (bmc.com) is a prominent vendor of IT and Web management tools is offers:

Patrol for e-business managementMainView for e-business management

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Managerial IssuesManagerial Issues

What is our business perspective?

Do we have a systematic development plan?

Insource or outsource?

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Managerial Issues Managerial Issues (cont.)(cont.)

1. How should Web services be deployed?

2. How should we choose a vendor/software?

3. Have we analyzed the data?

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SummarySummary

The major steps in developing an EC application.

The major EC applications and their major functionalities.

The major EC application development options along with their benefits and limitations.

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Summary Summary (cont.)(cont.)

1. EC application outsourcing options.

2. The major components of an electronic catalog and EC application suite.

3. Methods for connecting an EC application to backend systems and databases.

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Summary Summary (cont.)(cont.)

1. The rise of Web services.2. Criteria used in selecting an

outsourcing vendor and package.

3. The value and uses of EC application log files.

4. The importance and difficulties of EC application maintenance.

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Real World Case:Real World Case:Whirlpool’s Trading PortalWhirlpool’s Trading Portal

Whirlpool (Whirlpool (whirlpool.comwhirlpool.com) is a ) is a world leader in the manufacture world leader in the manufacture and marketing of major home and marketing of major home appliances appliances

Constantly improves the Constantly improves the efficiency of its operations while efficiency of its operations while still providing top-notch service to still providing top-notch service to members of its sales chainmembers of its sales chain

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Whirlpool’s Trading Portal Whirlpool’s Trading Portal (cont.)(cont.)

Relationships with its middle-tier Relationships with its middle-tier trade partners trade partners

25% of Whirlpool’s trading partners 25% of Whirlpool’s trading partners but only 10% of its revenues but only 10% of its revenues

Because of their size, these partners Because of their size, these partners had to submit their orders by phone had to submit their orders by phone or faxor fax

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Whirlpool developed a B2B trading-Whirlpool developed a B2B trading-partner portal that enables its middle-partner portal that enables its middle-tier sellers to order online using:tier sellers to order online using:

IBM WebSphere Application Server, IBM WebSphere Application Server, Advanced EditionAdvanced Edition

IBM Net.Commerce IBM Net.Commerce

IBM HTTP ServerIBM HTTP Server

IBM VisualAge for JavaIBM VisualAge for Java

IBM Commerce Integrator with IBM IBM Commerce Integrator with IBM MQSeries MQSeries


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The portal, called Whirlpool Web World The portal, called Whirlpool Web World allows middle-tier trade partners to allows middle-tier trade partners to select the goods they want to order by select the goods they want to order by checking off the appropriate SKUs and checking off the appropriate SKUs and indicating quantities indicating quantities

The portal has cut the cost per order to The portal has cut the cost per order to under $5-a savings of at least 80%under $5-a savings of at least 80%Whirlpool has also gained an extendable Whirlpool has also gained an extendable EC platform that it has leveraged for other EC platform that it has leveraged for other applicationsapplications


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The first-generation portal was The first-generation portal was developed to give the company a developed to give the company a chance to test the Web waters chance to test the Web waters

In the first 3 months, the amount of In the first 3 months, the amount of revenue that flowed through the revenue that flowed through the portal equaled expectations for the portal equaled expectations for the first 12 monthsfirst 12 months

The investment paid for itself in 8 The investment paid for itself in 8 monthsmonths

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Whirlpool chose IBM for its Whirlpool chose IBM for its second-generation portal second-generation portal because:because:

IBM had worked with Whirlpool on IBM had worked with Whirlpool on joint product development and with joint product development and with Whirlpool’s ERP system design and Whirlpool’s ERP system design and architecture architecture

An overwhelming number of An overwhelming number of Fortune Fortune 100100 companies use IBM e-business companies use IBM e-business solutions.solutions.

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Whirlpool also developed its Whirlpool also developed its e-business platform taking e-business platform taking advantage of Application advantage of Application Framework’s rapid development Framework’s rapid development cycles and associated cost cycles and associated cost reductions reductions A year later the suite of IBM tools A year later the suite of IBM tools enabled Whirlpool to get its enabled Whirlpool to get its applications to market much applications to market much faster faster

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