Elias M. Awad Third Edition ELECTRONIC COMMERCE From Vision to Fulfillment 12-1© 2007 Prentice-Hall, Inc ELC 200 Day 18

6-2 © 2007 Prentice-Hall, Inc Agenda Assignment 6 will corrected this weekend Assignment 7 posted –Due Nov 11:05 PM –1 more assignment after this one Quiz 3 will Nov. 10 (next class) –Chaps 7-12 –20 M/C and 4 Short Essays Discussion on Chap 16 “Going Online” –Chapter 16 provides the framework for the eCommerce Initiative paper that is due at the end of the semester.

Schedule for rest of semester Nov 6 –Chap 16 Nov 10 –Quiz 3 –Assignment 7 due Nov 13 –Chap 13 Nov 17 –Chap 13 Nov 20 –Chap 14 Nov 24 –Chap 14 Dec 1 –No class –Assignment 8 due Dec 4 –Chap 15 Dec 8 –Chap 15 Dec 11 –Quiz 4 –Assignment 9? Dec 10 AM –Presentation of eCommerce Initiative 6-3 © 2007 Prentice-Hall, Inc

Elias M. Awad Third Edition ELECTRONIC COMMERCE From Vision to Fulfillment 12-4© 2007 Prentice-Hall, Inc Going Online

12-5 © 2007 Prentice-Hall, Inc The focus of this chapter is on several learning objectives How to build a business on the Internet - from beginning to end What it takes to plan effectively The hardware, software, security, and setup considerations in e-commerce infrastructure The critical elements in the design of an e- business How to market e-presence How to manage customer feedback

12-6 © 2007 Prentice-Hall, Inc Building an Internet Business - The Life Cycle

12-7 © 2007 Prentice-Hall, Inc Business Planning and Strategizing (1) What is the best way to launch the business on the Internet? How much of the company’s business should be on the Internet? Requirements –Top management support –A champion in top management to sponsor the push to the Internet

12-8 © 2007 Prentice-Hall, Inc Business Planning and Strategizing (Cont’d) When should the business go on the Web? Strategize the following areas: –Vision –Resources –Culture –What is the key product or service at stake? –What is the main goal of going online?

12-9 © 2007 Prentice-Hall, Inc Traditional Business versus E-business

12-10 © 2007 Prentice-Hall, Inc Developing the Online Strategic Plan The most critical part of going online is the plan - the blueprint An online plan is a tool with communication, management, and planning in mind The plan helps you track, monitor, and evaluate your progress The plan guides you through various phases of the business

12-11 © 2007 Prentice-Hall, Inc Strategic Planning Questions to Consider 1.How familiar are you with the Internet? 2.Who will buy the product? 3.Are you planning to be a short-term presence or a long-term presence? 4.Who are your competitors? 5.How good will your products look? 6.How will you present your products offers? 7.How will you manage and process transactions? 8.How will the product be shipped? 9.How will you handle unexpected change? 10.How will you handle CRM?

12-12 © 2007 Prentice-Hall, Inc Capacity Planning Determining in advance the capacity of the bandwidth (pipeline) that will accommodate the traffic to and from the Web site Planning for scalability The objective is to ensure that your customers do not go somewhere else

12-13 © 2007 Prentice-Hall, Inc Going Global Strategic planning means considering the politics of going global A global strategy means setting up foreign distribution with IT talent abroad Think like a local Make sure your Web content is not misinterpreted Can your IT infrastructure handle your international traffic?

12-14 © 2007 Prentice-Hall, Inc Deciding on Type of Web Site Clearly defined goals keep your priorities in perspective Some main goals for Web sites are: –Marketing –Online sales and service –Information delivery –Customer support

12-15 © 2007 Prentice-Hall, Inc Types of E-Commerce Strategies

12-16 © 2007 Prentice-Hall, Inc Technology Infrastructure (2) What hardware will you need?? What Software will you need? Find an ISP. How will you deal with security? How will you staff your company?

12-17 © 2007 Prentice-Hall, Inc Software Issues eCommerce on the Internet requires basic software –File transfer protocol (FTP) –Remote Console VNC – – –Search capabilities –NetNews -- RSS feeds – –Broadband connection (DSL, Cable, or Wireless) –A browser IE, FireFox, Opera, Safari

12-18 © 2007 Prentice-Hall, Inc

12-19 © 2007 Prentice-Hall, Inc Security Security is the critical backdrop that must be in place for every step to work Security is the protection of data, software, or hardware against accidental or intentional damage from a defined threat Three types of security risk: –Document security entails the integrity of the Web site and its information –Customer privacy has to do with embedding devices in the visitor’s hard disk to track site usage –System security deals with the way the network, the Web server, and the e-commerce infrastructure prevent unauthorized access and tampering with e-commerce traffic

12-20 © 2007 Prentice-Hall, Inc Security Rules Control access to the Web server Update server software and encode security measures to ensure server - Web site integrity Use firewalls to protect the merchant’s internal network Monitor the traffic and detect irregularities in time to minimize damage Ensure a hot standby for every piece of hardware and software

12-21 © 2007 Prentice-Hall, Inc Design Phase (3) Design, build and host the web site What makes a good web site? Will you outsource? What services will you offer? What components will you need for your website??

12-22 © 2007 Prentice-Hall, Inc Attributes of the Web Storefront Customers should be able to find the product quickly The site should have mechanisms to process the order and send it to the fulfillment center for quick and secure packing and shipping The site should have mechanisms to generate a summary of the order and produce a printable receipt The site should have mechanisms to send a confirming to customers

12-23 © 2007 Prentice-Hall, Inc Software Program Cluster Components Database server Catalog builder Shopping cart Order-processing system

12-24 © 2007 Prentice-Hall, Inc Doing It Yourself? or Outsourcing? Should the IT department of the business design the Web site? Should the Web site design be assigned to an outside Web designer? Control versus Speed & Expertise How much $ do you have?

12-25 © 2007 Prentice-Hall, Inc Web Site Design Issues User control and freedom Consistency and standards Recognition rather than recall Efficient design Recovery from error Help desk

12-26 © 2007 Prentice-Hall, Inc The Marketing Phase (4) Providing good site service Advertising Know your customer Making the sale –Stock control –Collecting the cash Delivering the goods and following up

12-27 © 2007 Prentice-Hall, Inc The Marketing Phase

12-28 © 2007 Prentice-Hall, Inc The Fulfillment Phase (5) Fulfillment is what happens after a sale is made –Packing up the merchandise –Shipping the merchandise –Answering questions about the order –Sending out the bill or verifying e-payment –Following up to see if the customer is satisfied Fulfillment is honoring a commitment to deliver goods or services after payment has been assured To the customer order fulfillment is the most important business activity of all

12-29 © 2007 Prentice-Hall, Inc Fulfillment Issues Product availability Matching the products for sale to the products in the inventory Out-of-stock notice Back orders Processing orders Controls

12-30 © 2007 Prentice-Hall, Inc The Maintenance and Enhancement Phase (6) Maintenance means keeping a system or business on course, based on the initial design or plan The goal of maintenance is to ensure the usability of the Web site Enhancement means implementing upgrades or changes that are designed to improve the system’s productivity The goal of enhancement is to upgrade the Web site and the business-to-consumer connection to meet the latest standards and customer expectations

12-31 © 2007 Prentice-Hall, Inc Important Tips for Managing Customer Feedback Set up a list of frequently asked questions and post the list in a prominent location on the homepage Make sure the information can be accessed easily and quickly Make sure any page downloads within eight seconds and test it on slow, older computers Avoid unnecessarily large images or bandwidth-hogging elements Answer

12-32 © 2007 Prentice-Hall, Inc Important Items for Managing Customer Service Updating orders Order status Technical support Localization Handling customer expectations

12-33 © 2007 Prentice-Hall, Inc SWOT initiative framework guidlines.pdf An analytic method used to determine competitive advantage –Strengths –Weakness –Opportunities –Threats

12-34 © 2007 Prentice-Hall, Inc STRENGHTS (internal) Define areas you excel in –What will your initiative do better than others? –What are your core competencies (things you are good at)? –Do you have a clear strategic direction? –What resources do you have that competitors may not have?

12-35 © 2007 Prentice-Hall, Inc WEAKNESSES (internal) Evaluate your liabilities –Where are you weak in relation to your competitors? –What skills and resources are you lacking? –What needs to be improved in your initiative? –Why were not able to improve the weaknesses you discovered?

12-36 © 2007 Prentice-Hall, Inc OPPORTUNITIES (external) Analyze your customers and market potential –Identify favorable market conditions –Identify emerging technologies in support of your initiative –Identify changes in legislation and public policy that will have a supporting effect on your initiative

12-37 © 2007 Prentice-Hall, Inc THREATS (external) Analyze potential challenges –What are your obstacles? –What are your competitors doing? –Identify changes in legislation and public policy that will have an adverse effect on your initiative.

12-38 © 2007 Prentice-Hall, Inc SWOT Analysis

12-39 © 2007 Prentice-Hall, Inc Chapter Summary Launching a business on the Internet involves a life cycle Strategizing means evaluating a company’s position and the competition, setting a course for the years ahead, and determining how to get it done Specific goals need to be considered when planning e-business

12-40 © 2007 Prentice-Hall, Inc Chapter Summary (Cont’d) The hardware, software, security, and set-up phase focuses on: –Hardware to buy –Software to buy –Where to buy Four essentials of launching a business on the Internet are –Security –Shopping carts –Payments –Marketing Behind every Web site are programs stored on a Web server

12-41 © 2007 Prentice-Hall, Inc Chapter Summary (Cont’d) In Web design, the focus is on –user control and freedom –Consistency and standards –Recognition –Aesthetic design –Recovery from error –Help desk to handle customer queries and complaints Marketing phase includes: –Advertising –Knowing the customer –Making the sale –Getting the goods –Follow-up procedures after the sale

12-42 © 2007 Prentice-Hall, Inc Chapter Summary (Cont’d) Fulfillment phase typically includes: –Packing up the merchandise –Shipping the goods –Answering questions about the order –Sending out the bill or a copy of the bill Maintenance and Enhancement Phase addresses the need to keep the Web storefront up to date and to make any changes that will enhance the use and effectiveness of the Web site