Prentice Hall, 2002 1 Chapter 12 Building E-Commerce Applications and Infrastructure

Prentice Hall, 2002 1

Chapter 12

Building E-Commerce Applications

and Infrastructure


Learning Objectives

Describe the landscape and framework of EC application developmentDescribe the major EC applications and list their major functionalitiesDescribe the EC architecture development processList the EC application development options and the approaches for option selection


Learning Objectives (cont.)

Describe the major activities in system analysis and designDescribe the role of application service providers (ASPs)Describe catalogs, Web servers, carts, chatting, and telephony for EC


Learning Objectives (cont.)

Understand the issue of connecting EC applications to databases, other applications and networks, and to business partnersDescribe site usability and managementDescribe the process of storefront developmentBuild a simple storefront using templates


Basic Understand

There is a large variety of EC applicationsEC applications keep changing over timeThere are several options for developing EC applicationBuilding a complex applications from components is a viable strategyOne EC application may have many component from several different vendorsEC application may involve several business partners, including consultantsThe web sites and application can be developed in-house, outsourced or a combination of the two


EC Application Development Process


Landscape and Framework of EC Application Development

Development processStep 1: EC architecture creation--systems analysis approachStep 2: Select a development optionStep 3: Installing, connecting, and moreStep 4: DeploymentStep 5: Operation and maintenance


Landscape and Framework of EC Application Development (cont.)

Project managementDevelopment process is complex and must be properly managedTeam formed to manage the process and vendorsCollaborations with business partners is criticalAppropriate management includes periodic evaluations of system performance


Major EC Application

Storefronts (Sell-side)E-procurement (Buy-side)AuctionsEnterprise portal


Major EC Functionalities

A storefront—built on seller’s serverB2C storefronts : The Buyer needs :

Discover, search and compare productsSelect product ad negotiate priceAid in evaluation of products and servicesPayment of purchase and order processing

The seller needs :Order confirmationGuest book for comments and contactsCredit verification system Arrange delivery (tracking)


Major EC functioalities

The Seller needs (cont.)View a personalized page with a record of past purchaseVerify that the product has been shipped using a tracking systemRequest postsale support or feedbackView all lists in a secure user-friendlyProvide content updateConnect to inventory management module


Storefront subsystems

Research from DeWire, 1998 proposed that EC must containt at least :

1. A merchant system (storefront) that provides the merchant’s catalog with

ProductsPricesPromotion

2. A transaction system for processing orders, payments and other aspects of the transaction

3. A payment gateway that route payment through existing financial system(for credit card and settlement)

•Include shopping cart


Major EC Applicationsand Their Functionalities (cont.)

A storefront—built on seller’s serverSuppliers’ sell-side in B2B

Personalized catalogsB2B payment gateElectronic contract negotiationProduct configurationAbility to use m-commerceAffiliate program capabilitiesIntegration with corporate back-end systems



E-procurement and reverse auctionsReverse auction (tendering system)

Catalog of items to be tendered and content managementSearch enginePersonalized pages for potential large bidderReverse auction mechanism or real-timeFacility to help for providing RFQsCollaboration with trading partnersStandardization RFQsAutomatic business process workflowAutomatic matching of suppliers with RFQsAutomated language translationAbility for bidding via m-commerce


Catalog requirements for e-procurement

Search engineComparison engine for alternative vendorsOrdering mechanism Budget and authorization featureUsage comparison (among various department)Payment mechanism



Personalized pagesSecurity and privacy protectionIntegration capabilitiesSearching and indexingModularity

Performance cachingOpennessPolls and evaluationsE-mail serviceServers

Enterprise portals



Collaboration servicesCommunity servicesWeb-automated workflowIntegrated business process solutionsData miningTransaction flow

Language translationCentral coordination of global logisticsIntegration servicesNegotiation mechanismsComprehensive links

Exchanges


Developing an EC Architecture

The 6 steps of development are (Koontz 2000):Step 1: Define business goals and visionStep 2: Define the information architecture

Indentify the information available on each goalWhich information need to be digitizedUse a tool eg. DNA (Microsoft’s distributed internet architecture)

Step 3: Define data architectureWhat data and information needed to get from customersInvestigate all information that flows among the businesses


Developing an EC Architecture

The 6 steps of development are (Koontz 2000):Step 4: Define your application architecture

Define the components that meet the data requirements from step 3To interface with legacy systems eg. ERP

Step 5: Define the EC technical architectureExamine the specific hardware and software to support the analysis in the previous stepExamine the middleware, language needed

Step 6: Define the organization architectureHuman resources and procedures required


Development Strategies forEC Applications

AdvantagesAvailability of many off-the-shelf packagesSaves timeRequires few dedicated personnelNot the first and only user

DisadvantagesSoftware doesn’t exactly fit needsLoss of control over improvements and versionsDifficult to integrateVendors may drop product or go out of business

Buy the applications (turnkey approach)


Development Strategies forEC Applications (cont.)

LeaseTypes of leasing vendors

Lease the application from an outsourcer and install it on company premisesUse an application system provider (ASP)

In-house development: insourcingDevelopment approaches

Build from scratchBuild from components

Prototyping methodology


Development Strategies forEC Applications (cont.)

Other development optionsJoin an e-marketplace or exchangeJoin a third-party or reverse auctionJoint venturesJoin a consortiaHybrid approach


Outsourcing and Applications Service Providers

Outsourcing : For a small company with a few IT staff and smaller budget using outside contractor

Internet malls: common look-and-feel mallISPs: hosting, secure transaction Telecommunication companies: hostingSoftware houses: from IBM->ariba (agent)Outsourcers and others: eg. EDS, EC services


Applications Service Providers

ASP: agent/vendor who assembles the functions needed by enterprises and packages them with outsourced development, operation, maintenance and other services (Kern and Kreijger,2001)Benefits to the ASP vendor

Companies generate revenues from sources other than connectivity and transport

Lucrative Web site hostingWeb design consultingHosted applications with access charges


Applications Service Providers (cont.)

Benefits to the leasing companiesSaves time and various expenses in the initial development stage (i.e., labor costs)Reduces software maintenance, upgrading applications, and training timeReduces time-to-marketEnhances ability to adapt to changing market conditions disadv.: Protection, theft of confidential information, virus


Benefits and Risks of Using an ASP


Criteria for Selecting a Development Approach

Functionalities of development packages and criteria of choiceInformation requirementsUser friendlinessHardware and software resourcesInstallationMaintenance services

SecurityVendor quality and track recordEstimating costsMeasuring benefitsPersonnelForecasting and planning for technology evolution

Criteria


Criteria for Selecting a Development Approach (cont.)

ScalingSizingPerformance

Latency time(time to complete the task)throughput

ReliabilitySecurity

For ASP vendor :

Database format and portability

Application and data storage

Scope of service

Support services

Integration : ERP, CRM, SCM, accounting

Criteria (cont.)


System Analysis Activities and Tools

Requirements analysisMethods for determining requirements

Joint Application Development (JAD) : by key users, managers, EC users, business partners via brainstorming->prototype

Modeling approaches may be based on:Activity/processUse case/object-orientedInterprocess


System Analysis Activitiesand Tools (cont.)

Component-based developmentComponents evolved from objects of object-oriented methodologyThey are much larger than objects and now serve as plug-and-play building blocks for developing large complex systemsReasons for using components

Code reusabilitySupport for heterogeneous infrastructures and platformsRapid assembly of new business applications


Components defined

Component is an executable unit of code that provides physical black-box encapsulation of related services or functions which can be accessed only through a consistent, published interface that includes an interaction standard. A component must be capable of being connected to other components to form an application (Allen and Frost, 1998)E.g. user interface icon, a GUI, online ordering tool(business component), Intranet component includes search engines, firewall, web server, browser and telecommunication protocol.


Using components

Business Process ImprovementAccess business

needs

Provide solution From services

Usingcomponents

Legacy system Database Package Interface


System Analysis Activitiesand Tools (cont.)

Enterprise application integrationAims to integrate applications (including internal applications) that have been developed by different organizationsIf source code is unavailable (altering the application is not possible), EAI becomes the glue between the applications


Levels of Enterprise Integration


Basic of Integration

Common Presentation

Presentation Presentation

Legacyapplication

Packagedapplication

Data Data

Middleware

Legacyapplication

Packagedapplication

Data Data

ApplicationLogic

Presentation

Legacyapplication

Packagedapplication

Data Data

Middleware

ApplicationLogic

Presentation

Presentation Integration model Data Integration model Function Integration model


Electronic Catalogs, Shopping Carts

Electronic catalogs, shopping carts, and merchant servers

Templates or wizards for creating storefronts and catalog pagesE-shopping carts Web-based order formsDatabase for maintaining product descriptions, etc.Integration with 3rd party software—taxes, shipping, etc.

Electronic payment systems


Web Chatting, Webcasting,and Internet Telephony

Web chattingCommunication centersCustomer serviceCommunity discussionVideo chat

Webcasting:internet based broadcasting

Text streamsAmbient Webcasts: clips transmitted at periodic intervalStreaming audio

Internet telephonyPc-to-pcPc-to-phonePhone-to-phone


EC Suites

Suite—combined set of tools giving builder and users:

Greater flexibilitySpecializationCustomizationIntegration Support for complete functionality


Open Market EC Server Architecture

Source: Interworld,com/solutions


Commerce Suite

POSMarketplace

POSMarketplace

ProductMerchandising

ProductMerchandising

FulfillmentFulfillment

SCM,MRPWarehousing

SCM,MRPWarehousing

CustomerService

CustomerService

CAMCAM

ERPERP

Ordermanagement

Ordermanagement

information

Content

Transaction

workflow

BusinessIntelligent

BusinessIntelligent

From interworld.com


EC Suites

IBM WebSphere Commerce SuiteWeb server for catalog managementApplication server for security

Reverse auctionsExchangesContracts

EC suite server sell-side ordering and auctionsDatabase serverHTTP interface


IBM WebSphere Commerce Suite

Delivers an open, standards-based solution platform with integrated components for building e-marketplaceFacilitates operational efficiency and high return on investmentUses Java and XML technologies to aggregate sellers’ catalogsProvides optimal customization and flexibilityIncorporates e-marketplace functionality


Connecting to Databases, Legacy Systems, and Business Partners

Connecting to business partnersCritical to success of EC, especially for B2B applicationsIssues to be dealt with:

ConnectivityCompatibilitySecurityScalability


Web to Database Connection


Integration example

Build N-Tier,multitier, C/S applicationBrowser tier : presentation of informationApplication server tier : execution of business rules Database server tier : Company’s data

BEA, Inc. used JDBC(Java Database Connectivity) and ODBC (Open Database Connectivity)

TIBCO : TIB(The Information Bus)

Microsoft : ASP (Active Server Pages) use ODBC connect to variety of databases


Vendor and Software Selection

Steps in selecting software package (Martin et al, 2000)

1: Identification of suitable packages2: Determination of detailed evaluation criteria3: Evaluation of candidate packages4: Choosing a package5: Negotiating the contract


Vendor and Software Selection (cont.)

Identification of suitable packagesSources of information about packages

Hardware vendorsUser groupsTechnical and trade publicationsConsultants experienced with an application area or industryFriends and competitors

Preliminary evaluation criteria to eliminate all but a few of the most promising packages



Determination of evaluation criteriaMust determine in detail what one must know about the packages and how important each criteria is

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



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 businessNumber of employees, financial and location of its sales and support officesFirst release date of system being consideredDate of last revisionList of companies using the software to contact as references



Determination of evaluation criteria (cont.)

Project team develops essential functional requirements the systems must satisfy (RFP)

Mandatory requirementsDesired featuresStated as questions about the characterizes of the packageEase with which software can be tailored to fit company’s current needs or enhanced in the future



Evaluation of candidate packagesRFP is sent to short list of qualified vendors

Responses generate massive volumes of information for evaluation to determine

Gaps between the company’s needsCapabilities of the proposed application packages

To help determine which package, may use a table (see Table 12-2)



Criteria Weights

System A

System B

System C

Support for Java standards

XML

SSL

Shoppingcart

Catalogs

Taxation

Personalization



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 applicationMost important factor is additional development effort required to tailor the system:

To company’s needs To integrate with company’s environment



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 workIS people who will support the system agree that the system will work in their environment and that they can support is satisfactorily



Contract negotiation (EC managers and/or IS department)

Specifies the price of the softwareDetermines the type and amount of support to be providedIntegral part of purchase process

Company’s power is in being able to choose another vendor’s productConcessions from vendor must be negotiated before final decision on which package to buy



Service level agreements (SLAs)Formal agreements regarding the division of work between a company and its vendorsSLA can achieve facilitation and coordination by:

Defining the partners’ responsibilitiesProviding a framework for designing support servicesAllowing the company to retain as much control as possible over their own system



Service level agreements (SLAs) (cont.)Four steps for establishing SLA

Defining levelsDividing computing responsibility at each levelDesigning the details of the service levelsImplementing service levels


Site Management and Usage Analysis

Implementation of evaluation devicesCollecting and analyzing statistics

Hits per pageviewWhat can you get from pageviews

Pageviews by time bucket (time slot)Pageviews by customer logging statusPageviews by referrerPageviews by visitor’s hardware platform, OS, browser Pageviews by visitor’s host


Site Management andUsage Analysis (cont.)

Usability: the measure of quality of a user’s experience when interacting with a product or system

Ease of learningEfficiency of useMemorabilityError frequency and severitySubjective satisfaction



E-commerce management toolsPatrol for e-business management

Measures Web response timeFirewall administrationApplication servers:

Patrol for MicrosoftOpen marketNetscape



E-commerce management tools (cont.)MainView for e-business management

Manages mainframe-based EC applicationsMonitors mainframe network connectionsSystems administration

Service assurance center for e-business—methodology, products, and services designed to optimize performance and availability of business applications


Process of Storefront Development

Issues to be addressed before choosing the proper solution include:

CustomersMerchandising(kind of products)Sales servicePromotionTransaction processingMarketing data and analysisBranding


Process of Storefront Development (cont.)

Availability and fast loading Simplicity of site structureUse of shopping cartGood navigationGlobalizationMaximizing ways to order and pay

Establishing credibilityOffering personalized servicePre- and post sales supportRealistic pricing

Design guidelines

Documents

Prentice Hall, 2002 1 Chapter 12 Building E-Commerce Applications and Infrastructure