ISQA 407 Building E-Commerce Applications and Infrastructure

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ISQA 407Building E-Commerce Applications and
Infrastructure

• Summer 2002
• Dr. Sergio Davalos

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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 ApplicationsSome 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 ApplicationsSome 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 programcustomers receive selection of
  wines
• Shipment management feature

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Building EC ApplicationsSome 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 ShopperConnectionnetwork of retail
  sellers with links among member sites
  (ShopperConnection no longer in business)

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Building EC ApplicationsSome 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 12-2GMs TradeXchange
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Building EC ApplicationsSome Examples (cont.)

• General Motors TradeXchange
• Participant in Commerce Ones Global Trading Web
• TradeXchange uses Commerce Ones software and
  integrated components from other vendors
• I2 Technologys RHYTHM for better collaboration
• VEOs XML component for better communications

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Building EC ApplicationsSome Examples (cont.)

• General Motors TradeXchange (cont.)
• CommerceBid for B2B auction and reverse auctions
• Partnership with Empowerment Foundation and
  Direct Sourcing Solutions to help minority-owned
  suppliers compete
• PriceWaterhouseCoopers to provide EC services for
  the exchange

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gtgtgtFigure 12-3EC Application Development Process
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gtgtgtLandscape 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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gtgtgtLandscape 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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gtgtgtMajor EC Applicationsand Their Functionalities

• A storefrontbuilt on sellers 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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gtgtgtMajor EC Applicationsand Their
Functionalities (cont.)

• A storefrontbuilt on sellers 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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gtgtgtMajor EC Applicationsand Their
Functionalities (cont.)

• A storefrontbuilt on sellers serversell-side
  auctions
• E-procurement and reverse auctions
• Personalized aggregation of catalogs

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gtgtgtMajor EC Applicationsand 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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gtgtgtMajor EC Applicationsand 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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gtgtgtDeveloping an EC Architecture

• The 6 steps of development are
• Step 1 Define business goals and vision
• Step 2 Define the information architecture
• Step 3 Define data architecture
• Step 4 Define your application architecture
• Step 5 Define the EC technical architecture
• Step 6 Define the organization architecture

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gtgtDevelopment Strategies forEC Applications

• Buy the applications (turnkey approach)

• Disadvantages
• Software doesnt exactly fit needs
• Loss of control over improvements and versions
• Difficult to integrate
• Vendors may drop product or go out of business

• Advantages
• Availability of many off-the-shelf packages
• Saves time
• Requires few dedicated personnel
• Not the first and only user

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gtgtDevelopment Strategies forEC 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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gtgtDevelopment Strategies forEC 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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gtgtOutsourcing and Applications Service Providers

• Outsourcing
• Internet malls
• ISPs
• Telecommunication companies
• Software houses
• Outsourcers and others

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gtgtApplications 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 12-1Benefits and Risks of Using an ASP
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gtgtgtCriteria 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

• 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.)

• Database format and portability
• Application and data storage
• Scope of service
• Support services
• Integration

• Scaling
• Sizing
• Performance
• throughput
• Reliability
• Security

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gtgtgtSystem 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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gtgtgtSystem Analysis Activitiesand 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 Activitiesand 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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gtgtgtFigure 12-6Levels of Enterprise Integration
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gtgtgtElectronic 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 softwaretaxes,
  shipping, etc.
• Electronic payment systems

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gtgtgtWeb Chatting, Webcasting,and Internet
Telephony

• Webcasting
• Text streams
• Ambient Webcasts
• Streaming audio
• Internet telephony

• Web chatting
• Communication centers
• Customer service
• Community discussion
• Video chat

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gtgtgtEC Suites

• Suitecombined set of tools giving builder and
  users
• Greater flexibility
• Specialization
• Customization
• Integration
• Support for complete functionality

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gtgtgtFigure 12-8Open Market EC Server Architecture
Source Interworld,com/solutions
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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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gtgtgtFigure 12-10Web to Database Connection
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gtgtgtConnecting 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

Critical!
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Vendor and Software Selection

• Steps in selecting software package
• 1 Identification of suitable packages
• 2 Determination of detailed evaluation criteria
• 3 Evaluation of candidate packages
• 4 Choosing a package
• 5 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
  companys 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 companys 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 companys
  desired EC application
• Most important factor is additional development
  effort required to tailor the system
• To companys needs
• To integrate with companys 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
• Companys power is in being able to choose
  another vendors 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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gtgtgtSite 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 visitors hardware platform, OS,
  browser
• Pageviews by visitors host

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gtgtgtSite Management andUsage Analysis (cont.)

• Usability the measure of quality of a users
  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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gtgtgtSite Management andUsage 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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gtgtgtSite Management andUsage 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-businessmethodolog
  y, products, and services designed to optimize
  performance and availability of business
  applications

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gtgtgtProcess 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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gtgtgtProcess of Storefront Development (cont.)

• Design guidelines

• Establishing credibility
• Offering personalized service
• Pre- and post sales support
• Realistic pricing

• 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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gtgtgtManagerial 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