Elias M. Awad Third Edition ELECTRONIC COMMERCE From Vision to Fulfillment 6-1© 2007 Prentice-Hall, Inc ELC 200 Day 15

6-2 © 2007 Prentice-Hall, Inc Agenda Assignment 4 Corrected –5 A’s, 6 B’s, 7 C’s –Answer ALL of the question Missing Q4 Missing narrative in Q% Assignment 5 –Due next Class March 22 Quiz 3 –April 10 –Chap 7, 8, 9, 10 & 11 ECommerce Initiative Frameworks –GuidelinesGuidelines –Due May 8 AM Finish Discussion on Internet Marketing Begin Discussion on Web Portals and Web Services

6-3 © 2007 Prentice-Hall, Inc New Format Brand Ads Skyscrapers Bulky boxes Buttons and “Big Impressions” Pop-up Ads

6-4 © 2007 Prentice-Hall, Inc Personalization - the fifth “P” –A technique that combines product and promotion for customers to receive information customized to their needs Technically detailed descriptions are presented to the level of the user’s knowledge Product presentations are customized to suit the user’s interests The user’s expectations are met regarding the amount of relevant information

6-5 © 2007 Prentice-Hall, Inc Important Personalization Rules Prevent resistance to personalization –No Forms –Take your time to gather info Consider any source of information State preferences of users through forms or similar procedures Focus on privacy in every way possible Make an effort to learn from every move

6-6 © 2007 Prentice-Hall, Inc Important Personalization Rules (Cont’d) Jump-start a personalization relationship by posing the user a set of questions. –Answers to question benefit user Sell the goodness of personalization. Make life easier for users to tell you what they want and what they hate. Make sure there is no delay in a personalization environment.

6-7 © 2007 Prentice-Hall, Inc Marketing Implications Power shift has occurred from the merchant to the consumer Consumer can access any information on virtually any topic Common-sense rules: –Content: Don’t bore your customers with unnecessary content. –Dynamic and attractive sites –Brands: Web site should be most important brand –Get to the point: Conciseness, clarity, and ease of navigation –Promotion –Online events –Free giveaways –Consistency

6-8 © 2007 Prentice-Hall, Inc How to Market Presence Promoting your site on your site Promoting your site on the web –Search engine is a program that uses a logic search to find sites based on a combination of keywords –Directory is an organized listing with specific categories such as yellow and white pages in a telephone directory –Spider is a program that explores the Web, collects keyword information, and stores it on a huge database Promoting your site on the Internet –Use to contact registered customers –Advertise through news groups and mailing lists –Use mobile marketing and wireless “yellow” pages

6-9 © 2007 Prentice-Hall, Inc Guidelines for Attracting Customers to your Site Keep the site content current so visitors continue to return for news Offer free information or products Implement a cross-selling strategy Ensure easy and quick navigation Introduce event marketing Enlist affiliates Try out viral marketing as a tool for getting noticed –Referrals

6-10 © 2007 Prentice-Hall, Inc Trends in Internet Use Useful to help predict buying behavior The online population is younger, more educated, and wealthier than the overall U.S. population. Most online consumers are white. –Most online users are Asian More than 40 percent reported spending more than 20 hours per week browsing on the Web from home. Most regular use for the Internet is for work and at work. The Internet is used regularly at home to read news and for entertainment.

6-11 © 2007 Prentice-Hall, Inc Personalization First step in personalization is identification –Establish a unique consumer Ways to add personalization to a Web site –Keywords Based on your usage and selection –collaborative filtering Based on many similar users –rule-based personalization User input to a rule based system

6-12 © 2007 Prentice-Hall, Inc Tracking Customers Gathering Web Data to Track Customers Log files are files on the Web server that keep track of domain types, time of access, keywords used, and search engines used –ex logex log Forms Cookies Clickstream data analysis of Web site visitors’ clicks, which leave footprints representing their behavior –Pinpoint a host of customer behaviors –Analysis to determine Why customer left site Why customer abandoned cart

6-13 © 2007 Prentice-Hall, Inc Common Clickstream Data Where a visitor first landed on the site How a visitor got to the site (where were they before) Number and sequence of pages viewed Number and cost of each product purchased Length of time the visitor stayed on each page and on the entire site Total cost of each visit Point on the site where the visitor clicked away

6-14 © 2007 Prentice-Hall, Inc The Business Case for E-Intelligence Integrates e-business operations into the traditional business environment Helps business users make informed decisions based on accurate and consistent e-business information Assists e-business applications in profiling and segmenting e-business customers to personalize the actual Web pages displayed Extends the business intelligence environment outside of the corporate firewall to trading partners Extends the business intelligence environment outside of the corporate firewall to key corporate clients Links together e-business applications with business intelligence and collaborate processing applications

6-15 © 2007 Prentice-Hall, Inc Shopbots Buyer agents –Autonomous software Does comparison shopping for the consumers –Consumer decides on Product and price –Shop returns web sites were product is available Examples – Find cheap textbooks – Multifunction laser Printer – –

6-16 © 2007 Prentice-Hall, Inc Customer Service Automation removes the human contact between buyer and merchant –Good or bad?? “Don’t annoy the customer” –You can only lose a customer once Botched logistics can spell disaster –Order taking is the easy part –Fulfillment is where the merchant promotes or destroys customer satisfaction Order tracking

6-17 © 2007 Prentice-Hall, Inc Main Goals of CRM Better customer service and customer revenues More efficient call center Faster closing of deals by sales staff More effective cross selling of products Simplified market and sales processes Discovering new customers and personalizing relationships to improve profitability and customer satisfaction Goal is to increase Customer Lifetime Value

6-18 © 2007 Prentice-Hall, Inc Overall Goal of CRM Identify what truly matters for the customer –First, notice what customers are doing –Second, remember what customers have done over time –Third, learn from what is remembered –Fourth, act on what has been learned

6-19 © 2007 Prentice-Hall, Inc Interrelated Elements of Customer Satisfaction

6-20 © 2007 Prentice-Hall, Inc Developing and Understanding Relationship with Customers

6-21 © 2007 Prentice-Hall, Inc E-CRM Indicators Complaining ability Privacy Policy Online product information Sire maps Contact Us – –Phone (toll-free) –Snail mail About Us Mailing list –Opt-in –Opt-out FAQs Order tracking Site customization Find branch location

6-22 © 2007 Prentice-Hall, Inc CRM-integrating Critical Processing

6-23 © 2007 Prentice-Hall, Inc Managing Implications An important implication for management is return on investment The future of the Internet and e-commerce lies in customer tracking and personalization Internet marketing allows firms to communicate with customers around the clock Companies should reconsider their approach to customer support E-commerce without e-service can be suicidal for a business Successful Internet marketing means high-level executive involvement

Elias M. Awad Third Edition ELECTRONIC COMMERCE From Vision to Fulfillment 6-24© 2007 Prentice-Hall, Inc Web Portals and Web Services

6-25 © 2007 Prentice-Hall, Inc The focus of this chapter is on several learning objectives The concept of Web portal How portals transform a business The main techniques and functionalities of an enterprise portal Knowledge portals and their uses Web services and portals Who is building and sponsoring enterprise portals How to select a portal product

6-26 © 2007 Prentice-Hall, Inc What Are Portals? A portal is a Web page that offers links to other Web sites. Portals can be broad or narrow, specific or general Vertical portals are electronic exchanges that combine upstream and downstream e-commerce activities of specialized products and/or services Google Define: portal

6-27 © 2007 Prentice-Hall, Inc Portals are Considered Virtual workplaces for the following functions: –Promoting knowledge sharing among different categories of end users –Providing access to structured data –Organizing unstructured data

6-28 © 2007 Prentice-Hall, Inc Portals Are Considered (Cont’d) Offering varieties such as –Portals on intranets –Customer-facing information portals –Supplier-facing information portals –Enterprise portals –The most promising tool for simplifying the access to data stored in various application systems –Facilitating collaboration among employees –Assisting the company in reaching its customers

6-29 © 2007 Prentice-Hall, Inc Portal Disadvantages Difficulty integrating with other applications Organizational and financial costs Culture shock The need for additional investment in technology The difficulty of retaining skilled staff Uncertainty of benefits Expense of technology Unprepared suppliers Incompatibility with existing IT infrastructure

6-30 © 2007 Prentice-Hall, Inc Portal Categories Horizontal Portal is an electronic exchange that focuses on many subjects (e.g. Enterprise Information Portal is a portal that ties together multiple, heterogeneous internal repositories and applications, as well as external content sources and services, into a single browser-based view that is individualized to a particular user’s task or role –Maine Street UMS portalMaine Street UMS portal

6-31 © 2007 Prentice-Hall, Inc Portal Categories (Cont’d) Knowledge portal is a Web page or a facility that offers a single, uniform point from which all of an enterprise’s data sources can be accessed –Knowledge worker is a person who transforms business and personal experience into knowledge through capturing, assessing, applying sharing, and disseminating it within the organization to solve specific problems or to create value –Knowledge producer interface –Knowledge consumer interface

6-32 © 2007 Prentice-Hall, Inc Knowledge Portals versus Information Portals

6-33 © 2007 Prentice-Hall, Inc Functions of a Knowledge Portal

6-34 © 2007 Prentice-Hall, Inc Search Engines Software agents whose task is to find information by looking at keywords or by following certain guidelines or rules Like Yellow Pages for online businesses Crawlers are computer-automated programs that scour the Internet for Web links Site content and relevance are integral parts of automated search engines No search engine is free of drawbacks DMOZ project

6-35 © 2007 Prentice-Hall, Inc The Business Challenge The explosion in the volume of key business information already captured in electronic documents has left many organizations losing their grip on information –The speed with which quantity and content are growing means rigorous internal discipline to mine and integrate the sources of enterprise knowledge –Companies realize that they must develop strategies and processes designed to best utilize intellectual resources at strategic and operational levels

6-36 © 2007 Prentice-Hall, Inc Role of Portals in Facing Business Pressures Business Integration vs. Information Integration or Application Integration Process Integration Application and Information Integration Enterprise Metadata Repository

6-37 © 2007 Prentice-Hall, Inc Key Functionalities of Portal Gathering Categorization Distribution Collaboration Publish Personalization Search/Navigate

6-38 © 2007 Prentice-Hall, Inc Collaboration The goal of the collaboration tool is to support information sharing Two or more people working together in a coordinated manner over time and space using electronic devices Asynchronous collaboration is human-to-human interaction via computer subsystems having no time or space constraints Synchronous collaboration is computer-based, human-to- human interaction that occurs immediately (within 5 seconds) using audio, video, or data technologies

6-39 © 2007 Prentice-Hall, Inc Requirements for Successful Collaboration Tools

6-40 © 2007 Prentice-Hall, Inc Content Management Also referred to as content management system (CMS); a system used to manage the content of a Web site Includes structured and unstructured internal information objects Complexity is handled by building sophisticated knowledge management taxonomy based on metadata CMS handles the way documents are analyzed, stored and categorized Extensible Markup Language (XML) is the specification developed by the W3C designed especially for Web documents

6-41 © 2007 Prentice-Hall, Inc Synchronous and Asynchronous Collaboration Tools Synchronous Collaboration Teleconferencing Computer Video/Teleconferencing Online Chat Forum Asynchronous Collaboration Electronic Mailing Lists Web-Based Discussion Forums Lotus Notes

6-42 © 2007 Prentice-Hall, Inc Sample XML Document Tove Jani Reminder Don’t forget me this weekend!

6-43 © 2007 Prentice-Hall, Inc Services of Intelligent Agents Customized customer assistance with online services Customer profiling Integrating profiles of customers into a group of marketing activities Predicting customer requirements Negotiating prices and payment schedules Executing financial transactions on the customer’s behalf

6-44 © 2007 Prentice-Hall, Inc Web Services and Portals Web services are essentially business services, composed of standards that allow different platforms, operating systems, and languages to exchange information or carry out a business process together Improve the ways a company conducts electronic transactions with trading partners A simple “packaging” technology accessible over the Internet that does not require any technology tied to a vendor’s platform Web services are mobile and interactive More about successful business strategy than technology

6-45 © 2007 Prentice-Hall, Inc Major Aspects of Web Services A service provider that provides an interface for software that can perform specified tasks A client that invokes a software service to provide business solution or service A repository that manages the service

6-46 © 2007 Prentice-Hall, Inc Web Services Framework

6-47 © 2007 Prentice-Hall, Inc Issues in Providing IT for Knowledge Sharing Responsiveness to user needs Content structure Content quality requirements Integration with existing systems Scalability Hardware-software compatibility Synchronization of technology with the capabilities of the user

6-48 © 2007 Prentice-Hall, Inc Planning and Developing an Enterprise Portal Identify the sore points in the business that a portal can help address. Identify the portal users and their role in the firm. Select, install, and incorporate portal technology and associated hardware.

6-49 © 2007 Prentice-Hall, Inc Chapter Summary A portal is a secure, Web-based interface that provides a single point of integration for and access to information, applications, and services for all people Portals have made their way into enterprises, bringing together not only information from the Internet, but in-house data as well The term data sources encompasses structured data and unstructured data, but also includes the data resulting from specific processes and enterprise applications

6-50 © 2007 Prentice-Hall, Inc Chapter Summary (Cont’d) Content management requires directory and indexing capabilities to manage automatically the ever-growing store of structured and unstructured data residing in data warehouses, Web sites, ERP systems, legacy applications Collaborative functionality can range from tracking to developing workplace communities