Lecture 7 E-Commerce Life Cycle & Development

1. Lecture Lecture 7E-Commerce Life Cycle & Development Electronic Commerce

2. This Lecture • Systems approach to development • Systems development life cycle • Methodologies for development • Techniques and tools • Web application considerations • Evaluation

3. Systematic Approach Systems should not be built “ad-hoc” but should be developed following a systematic approach

4. Systems Theory “The trans-disciplinary study of abstract organisation of phenomena, independent of their substance, type, or spatial or temporal scale of existence. It investigates both the principles common to all complex entities, and the models which can be used to describe them.” Francis Heylighten & Cliff Joslyn in Cambridge Dictionary of Philosophy

5. FEASIBILITY STUDY· establish feasibility & business case Systems Development Life Cycle (SDLC) · client (sponsor) · system analyst SYSTEM ANALYSIS · determine system requirements · understand old system and problems · logical view of the system · system analyst · managers · users SYSTEM DESIGN · physical design the system · system analyst · developers IMPLEMENTATION · install and test· train users · documentation & user manuals · system analyst · developers · users POST INSTALLATION & REVIEW · fix errors · maintain program · add enhancements · developers · users

6. Worlds in System Development Subject World Make sense of usage world? Represent Information? Requirements model Analysis Model System World Usage World Systems Specification Design Model Scenarios Design System? Justify System? Development World Computer System Source: Hawryszkiewycz (2001) p.83

7. Strategic Design SWOT Business Model Rich picturesScenarios System Model Structured systems analysisObject modelling Implementation Model Programs & databases Models in Development

8. Major Strategies forSystems Development • Modern Structured Analysis • Information Engineering • Object-oriented Analysis • Rapid Application Development • Evolutionary Design & Prototyping • Joint Application Development • Business Process Redesign/Re-engineering • Modular and Component Development • Reverse and Reengineering • Combination

9. Modern Structured Analysis • Systems and business analysts draw a series of process models called data flow diagrams that depict the essential processes of a system along with inputs, outputs, and files. • The models are structured pictures which define business requirements and information system designs. • The model (the logical design for the system) becomes the design blueprint for constructing the final system

10. A Process Model Data Flow Diagram

11. Information Engineering (IE) • Information engineering is a data-centered, but process-sensitive technique that is applied to the organization as a whole (or a significant part therefore – such as a division), rather than on an ad-hoc, project-by-project basis (as in structured analysis). • In addition to data models, information engineers also draw process models similar to those drawn in structured analysis • The basic concept of information engineering is that information systems should be engineered like other products.

12. A Data Model placed by; is enrolled under; Member Agreement Member places applies to Order established by; sells; generates; established is sold on generated by sponsors; is featured in; Club Product Promotion is sponsored by features Entity Relationship Diagram

13. Prototyping • Prototyping is a technique used to develop partial, but functional versions of a system or applications. • When extended to system design and construction, a prototype can evolve into the final, implemented system. • Evolutionary Prototyping

14. Joint Application Development (JAD) • Uses highly organized and intensive workshops to bring together system stakeholders to jointly define and design systems. • A systems analyst usually plays the role of facilitator for a workshop. • A JAD workshop will typically run from 3-5 full working days. • This workshop may replace months of traditional interviews and follow-up meetings.

15. Rapid Application Development (RAD) • Aims at delivering systems solutions fast • Combines five techniques • Evolutionary Prototyping • CASE tools with code generation • Specialists with Advanced Tools (SWAT) • Interactive JAD • Timeboxing

16. Business Process Re-engineering “the fundamental rethinking and radical design of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality service, and speed” Source: Hammer, M. (1993) The Promise of Reengineering, Fortune, 3 May, p.95

17. Business Process Redesign (BPR) • Business process redesign (also called business process reengineering) is the application of systems analysis (and design) methods to ….. the goal of dramatically changing and improving the fundamental business processes of an organization, independent of information technology.

18. Object-Oriented Analysis (OOA) • Data and the processes that act upon that data are combined or encapsulated into things called objects. • The only way to create, delete, change, or use the data in an object (called properties) is through one of its encapsulated processes (called methods). • used to • (1) study existing objects to see if they can be reused or adapted for new uses • (2) define new or modified objects that will be combined with existing objects into a useful business computing application.

19. Reverse Engineering NewSystem Legacy System Forward Engineering Reverse Engineering Required Model Reference Model/Blueprint

20. System Development Phases

21. SWOT analysis Business Plans Requirement modelling Rich Pictures Scenarios Use Cases Entity Relationship Diagrams Hierarchy Charts Normalisation Object Model Diagrams Data Flow Diagrams Workflow Diagrams Pseudocode, Structured English Transitions Diagrams Interaction or Sequence Diagrams Decision Tables & Trees Flowcharts Prototypes Network and Infrastructure diagrams Database schema Form, screen & report layouts Techniques in Development

22. Tools • Diagramming software • eg Visio, ABC Flowchart, Smartdraw • Code and Application generators • eg MyFirstStore, EziStore, ColdFusion • Computer Aided Software Engineering (CASE) Tools • System Architect, Visible Analyst

23. Choosing the right approach • This is influenced by the nature of the problem or opportunity • May be based on • Degree of system structure • Familiarity with technology • The project size

24. Cross Life Cycle Activities • Activities that overlap many or all phases of the methodology are known as cross life cycle • Activities include: • fact finding • documentation and presentation • estimation and measurement • feasibility analysis • project & process management

25. Project Management Gantt Chart

26. Systems Support • System support is the ongoing maintenance of a system after it has been placed into operation. • Systems support consists of activities including: • Fixing software ‘bugs’. • Recovering the system. • Assisting users. • Adapting the system to new requirements.

27. Implementation EC Plan • Starts with organising a project team • Undertake a few pilot projects (help discover problems early) => Prototyping • Implementing EC • Redesigning existing business processes • Back-end processes must be automated as much as possible • Company must set up workflow applications by integrating EC into existing accounting and financial back-ends

28. Uncovering Specific ECOpportunities and Application • Understand: • How digital markets operate • How Internet customers behave • How competition is created and what infrastructure • is needed • What are the dynamics of EC • Map opportunities that match current competencies and markets • Many opportunities to create new products and services

29. Finding IT Applications • Brainstorming by a group of employees • Soliciting the help of experts, such as consultants • Review what the competitors are doing • Ask the vendors to provide you with suggestions • Read the literature to find out what’s going on • Use analogies from similar industries or business processes • Use a conventional IS requirement analysis approach

30. Building System Infrastructure Business Process Reengineering Web Page Design Security and Control Marketing Finance Accounting Information Technology Organization and Staffing • Define the roles and responsibilities of: • Senior management • Web champion • Webmaster • Gatekeepers • Web team EC Project Team

31. Analysts Project Manager Network specialists Database administrator Programmers Technical and professional communicators Security Experts System Integrators Graphic artists Multimedia designers User Interface Designers Legal experts Managers Users E-Business Development Team

32. Evaluating Outsourcing • Factors to consider: • Ease of configuration and setup • Database and scripting support • Payment mechanism • Sample storefronts • Workflow management • Documented database support • Integration into existing accounting and financial back ends

33. Web Hosting • Hosting Internally Vs. Hosting Using ISP • System Cost • bandwidth • capabilities and specifications • firewall system • wireless delivery • buy, rent, or lease • maintenance, upgrade, and service of the equipment

34. Web Hosting (cont.) • Purchase a suite of software that claims to integrate storefront functions into a single box • iCat Corp.’s Electronic Commerce Suite and Commerce Publisher • Open Market’s Transact and LiveCommerce • Microsoft Corp.’s Site Server Commerce Edition • IBM Corp.’s Net. Commerce Pro • Saqqara Systems’ StepSearch Professional • AT&T

35. Web Hosting (cont.) • Making a Web catalog into a multimedia extravaganza • Not easy and expensive • Lower end systems : begin at $25,000 USD • May not link to existing systems • High end systems : $250,000 to $2 million

36. Web Content Design • Content takes many shapes • Will change dramatically • More robust, comprehensive, and usable medium • Challenges in developing a successful online storefront • Choosing the right software solution for your site • 3 options • build your own software • purchase a commercial software product • rent from a Web host

37. The services wanted How much your company can contribute to the site, from manpower to electronic content The time to design your site The time to create and program your site Extra fees for software development Fees for off-the-shelf applications tools The size of the site The amount of traffic the site generates Vs. flat rate Training requirements Installation and server maintenance Programming On corporate site hosting Vs. off-site Secure Server for financial transactions Your bandwidth needs Your server capacity needs Location of your server at the Web company or ISP company location Web content design considerations

38. Electronic shopping mall Unique URL Electronic commerce/financial transactions Shopping cart software Online catalogs Direct order procedures Dynamic databases Static databases Multimedia Telephony Audio Video FTP Forms Chat rooms VRML Statistics Customer tracking E-mail response and forwarding Java applications Animation Security Web Application Features

39. Evaluate the EC Project • Perform a post-implementation review • Collect information • Measure results • Determine success • Are the goals and requirements being met • Is return on investment being achieved • Overall project cost • Suggest improvements or correction

40. Strategy Reassessment • Webs grow in unexpected ways — • e.g. Genentec and Lockheed Martin • Reasons for a not having a worthwhile project • The goals were unrealistic • The web server was inadequate to handle traffic • The actual cost savings were not as much as expected • Important • Develop a checklist • Project Team compiles statistics that can be tracked • CIOs and other executives are trying to extract the business value from their investment in information technologies

41. Management Issues • Considering the strategic value of EC • Conducting strategic planning • Considering the risks • Integration • Existing data bases & legacy applications • Development approach & implementation • Pilot project

42. Summary • Systems approach to development • Systems development life cycle • Methodologies for development • Techniques and tools • Web application considerations • Evaluation

43. Private Study • Question ?