CASE: Implementing Success or Failure: It’s in the eye of the beholder Is it possible that some implementation problems cannot be easily foreseen or prevented? Give some examples. • Rapid change in outside environment • Unexpected shifts in market conditions • Mergers & Acquisitions That were not in place during system development
What could Indiana University have done differently to prevent this unfortunate event from occurring? Paid more attention to the following: • Lack of a “sponsor” • Lack of system “analysis” • Lack of Project Management experience, hence planning • Violated most principles of project management • Ignoring the Complexity of problem • Lack of • Apparent rush to implement the system • Ignore analysts warnings • Lack of testing & Training
Is there evidence to suggest that they learned from this experience? It appears they learned from their mistakes. • They were able to identify causes of failures – first step in correcting errors
E-Commerce roots • Electronic funds transfer (EFT): the oldest large-scale e-commerce root. Banks have been exchanging financial transactions through Automated Clearing Houses for decades. • Transaction automation (TA): consumers and businesses have been using TA in a variety of Point of Sales (POS) applications, like credit-cards, purchase scanning, etc. Verifone was the pioneer. • Inter Organizational Systems (IOS): business to business commerce over proprietary networks particularly for order entry and purchasing, using Electronic Data Interchange (EDI) technology and standards. • Electronic Commerce today: business to business (B2B), business to consumers (B2C), consumers to consumers (C2C).
E-Commerce Technologies • Traditional technologies • Operating Systems: scalability, portability, security, interoperability • Networking & telecommunications: bandwidth, reliability, scalability, security • Data bases: dynamic catalog management and display, order entry, fulfillment and delivery. • New technologies • HTML: Web Design and store-front tools • Web programming: Server management & CGI programming
Electronic Commerce • More than just buying and selling products online • Includes the entire online process of • Developing, marketing, selling, delivering, servicing and paying for products and services • Transacted on the internetworked global marketplaces of customers • With the support of a worldwide network of business partners
Access Control and Security • E-commerce processes must establish mutual trust and secure access • Between the parties in an e-commerce transaction • By authenticating users, authorizing access, and enforcing security features
Profiling and Personalizing • Gather data on you and your website behavior and choices • Build electronic profiles of your characteristics and preferences • Profiles are used to recognize you and provide you with a personalized view of the contents of the site with product recommendations and personalized advertising • One-to-one marketing strategy
Search Management • Search processes that helps customers find the specific product or service they want to evaluate or buy
Event Notification • Most e-commerce applications are event-driven • Respond to events such as customer’s first website access, payment, delivery • Event notification software monitors e-commerce processes • Records all relevant events including problem situations • Notifies all involved stakeholders
Electronic Payment Processes • Web PaymentProcesses • Shopping cart process • Credit card payment process • Other more complex payment processes • Electronic Funds Transfer (EFT) • Capture and process money and credit transfers between banks and businesses and their customers
Securing Electronic Payments • Network sniffers • Software that recognizes and intercepts credit card number formats • Security measures to combat • Encrypt (code and scramble) data between customer and merchant • Encrypt credit card authorizations • Take sensitive information off-line
e-Commerce Success Factors • Selection and Value • Attractive product selections, competitive prices, satisfaction guarantees, and customer support after the sale • Performance and Service • Fast, easy navigation, shopping, and purchasing, and prompt shipping and delivery • Look and Feel • Attractive web storefront, website shipping areas, multimedia product catalog pages, and shopping features
e-Commerce Success Factors • Advertising and Incentives • Targeted web page advertising and e-mail promotions, discounts and special offers, including advertising at affiliate sites
e-Commerce Success Factors • Personal Attention • Personal web pages, personalized product recommendations, Web advertising and e-mail notices, and interactive support for all customers • Community Relationships • Virtual communities of customers, suppliers, company representatives, and others via newsgroups, chat rooms, and links to related sites • Security and Reliability • Security of customer information and website transactions, trustworthy product information, and reliable order fulfillment
Developing a Web Store • Build website • Use simple website design tools • Predesigned templates • Build your own website or use outside contractor • Market website to attract visitors and transform them into loyal customers
Serving Customers • Serve customers by creating user profiles, personal Web pages and promotions that help develop a one-to-one relationship • Transact with customers by providing an attractive, friendly, and efficient Web store • Support customers with • Self-help menus, tutorials, FAQs • E-mail correspondence with customer service representatives
Managing a Web Store • Manage both the business and the website • Record and analyze traffic, inventory and sales • Link to accounting system • Operate twenty-four hours a day, seven days a week • Protect transactions and customer records, use firewalls, and repel hacker attacks
Strategic Areas: Marketing • design • presence • visibility • catalog development • price & availability • description, image • order entry • billing • credit cards, etc • customer service • FAQ • returns
Strategic Areas: Operations • supplier ordering and receiving • partners • JIT (just-in-time) • distribution centers • warehouse(s) • packing • shipping • order-tracking • internal • external • delivery services
Strategic Areas: Business models • extranet • firewall • tunneling • Web front-end + outsourcing • store-front tools • outsourcers • extranet + Web front-end + outsourcing • combination of above
B2B e-Commerce • B2B e-commerce is the wholesale and supply side of the commercial process, where businesses buy, sell, or trade with other businesses. • Factors for building a successful retail website also apply to websites for B2B e-commerce.
e-Commerce Marketplaces • One to Many – sell-side marketplaces host one major supplier who dictates product catalog offerings and prices • Many to One – buy-side marketplaces attract many suppliers that flock to these exchanges to bid on the business of a major buyer • Many to Many – auction marketplaces used by many buyers and sellers that can create a variety of buyers’ or sellers’ auctions to dynamically optimize prices
Clicks and Bricks • Should we integrate our e-commerce business operations with our traditional physical business operations • Or should we keep them separate?
e-Commerce Channel • The marketing or sales channel created by a company to conduct and manage its chosen e-commerce activities • Issue is whether the e-commerce channel should be integrated with traditional sales channel.
Checklist for Channel Development • What audiences are attempting to reach? • What action do we want these audiences to take? • Learn about us, give us information, make an inquiry, to buy something from website, or buy through another channel? • Who owns the e-commerce channel within the organization? • Is the e-commerce channel planned alongside other channels?
Checklist for Channel Development • Do we have a process for generating, approving, releasing, and withdrawing content? • Will our brands translate to the new channel or will they require modification? • How will we market the channel itself?
Cookies • Cookies: small text file that Web sites place on a visitor’s client computer every time they visit, and during the visit as specific pages are accessed. • Cookies provide Web marketers with a very quick means of identifying the customer and understanding his or her prior behavior • Location of cookie files on computer depends on browser version
Advertising Networks • Best known for ability to present users with banner advertisements based on a database of user behavioral data • DoubleClick best-known example • Ad server selects appropriate banner ad based on cookies, Web bugs, backend user profile databases
How eCommerce WORKS?http://www.online-commerce.com/tutorial.html
How eCommerce WORKS? BROWSE INITIATE ORDER MOVED to the online transaction server in an encrypted environment PLACE ORDER MOVED TO PROCESSING NETWORK ISSUING BANK COMPLETES/DENY THE TRANSACTION (With the addition of Secure Socket Layer technology, eCommerce is also a very safe way to complete transactions)
Developing an eCommerce Business? • Getting an Internet Merchant Bank Account • Web Hosting • Obtaining a Digital Certificate • Finding a Provider of Online Transactions • Creating or Purchasing a Shopping Cart Software
WEB HOSTING • Good uptime • Good technical support • Fast connection to the Net • Staff that is knowledgable about eCommerce • Compatibility with major eCommerce providers
Digital Certificate A digital certificate, also known as a SSL Server Certificate, enables SSL (Secure Socket Layer encryption) on the web server. Can use Your web hosting company’s or get your own
SHOPPING CART SOFTWARE An operating system that can be used to Allow people to purchase your items, Keep track of your accounts, Tie together all of the aspects of your eCommerce site into one cohesive whole.
SUMMARY • Investigate the web sites that are possible rivals and formulate a strategy for competing against them. • If you anticipate a lot of growth in the amount of orders coming through your site, figure out how you are going to cope with the increased load before you get swamped.
SUMMARY • If you know nothing about web design, it is probably a good idea to hire a designer. • Marketing your site is very important on the web. Here are some useful tips: - Submit your site to as many search engines as possible. - Try finding web sites with similar themes and make deals to create reciprocal links. - Create an advertising banner and purchase space from a popular website to display it. - Put your URL in the signature file of your email and the header of all business corespondence. - Word of mouth is very powerful on the Net; tell all of your friends about your page. - Avoid spamming - it is a sure way to get a very bad reputation.
Market Entry Strategies • For new firms: • Pure clicks/first mover • Mixed “clicks and bricks”/alliances • For existing firms: • Pure clicks/fast follower • Mixed “clicks and bricks”/brand extensions
GOOD WEB SITE DESIGN PRACTICES • Use small (byte-wise) graphics so graphics load more quickly in graphics-capable browsers. (It is not advisable to use GIFs for everything. • When using graphics, provide textual alternatives for image-disabled or text-only Web browsers and indexing agents • Test. Every visitor will see your pages differently. Test your pages with as many browsers and platforms as you can.
GOOD WEB SITE DESIGN PRACTICES • For the future, to add presentational effects and Web page style, validate documents at the HTML 4.0 level (for the cleanest possible markup) • Spell check and proof-read your documents. • Establish a routine for locating and fixing broken internal and external Web site links. • Include contact information and a copyright notice.
GOOD WEB SITE DESIGN PRACTICES • If your Web site URL or email address will change occasionally, consider using a service that provides email forwarding and URL redirection • Submit your Web site address to an appropriate newsgroup for a critical peer review • Promote your Web site by adding your Web address to search engine indices and subject directories. To ensure that people can easily find your Web site, it may be necessary to modify your pages to take best advantage of current search technologies
Generic Market Entry Strategies Figure 7.17, Page 408