Workshop in Electronic Commerce Presented by Dr Kelly

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Workshop in Electronic Commerce Presented by: Dr. Kelly Burke – UH Hilo School of Workshop in Electronic Commerce Presented by: Dr. Kelly Burke – UH Hilo School of Business Dr. Eric Jeschke – UH Hilo Computer Science Department Funded by: Department of Business, Economic Development, and Tourism University of Hawaii Hilo School of Business

Workshop in Electronic Commerce Objectives The WWW Payment Business Problem Planning Marketing EC Models Workshop in Electronic Commerce Objectives The WWW Payment Business Problem Planning Marketing EC Models Getting Started Infrastructure EC Levels Site Design Site Performance Facts and Forces Security Wrap Up Previous Next Kelly Burke University of Hawaii at Hilo

Workshop Objectives You are planning to establish an e. Business in the future l Workshop Objectives You are planning to establish an e. Business in the future l Whether you intend to: l Ø Ø l Plan and develop the site yourself Have an employee plan and develop the site Plan the site and have an ISP/Host develop it Have an ISP/Host plan and develop the site You need to understand Ø Ø Ø what Electronic Commerce is, how it works, how to plan and manage it. Previous Next Kelly Burke University of Hawaii at Hilo

Workshop Objectives l l l What is EC? What forms can EC take? How Workshop Objectives l l l What is EC? What forms can EC take? How can EC help? How do I get started? How do I build a simple web page? What is involved in building a full web site? Previous Next Kelly Burke University of Hawaii at Hilo

Workshop Objectives l l l l What are my options for doing E-Commerce? What Workshop Objectives l l l l What are my options for doing E-Commerce? What software and hardware do I need? What makes a good web site? How do I market my site? What concerns should I have for security? How can I settle transaction payment? What future issues should I be aware of? Previous Next Kelly Burke University of Hawaii at Hilo

Defining Electronic Commerce Use of electronic communications facilities to conduct any part of a Defining Electronic Commerce Use of electronic communications facilities to conduct any part of a business (internal or external) transaction. Previous Next Kelly Burke University of Hawaii at Hilo

Business Problem l The world is attracted to the possibility of doing EC Ø Business Problem l The world is attracted to the possibility of doing EC Ø Ø l Media frenzy (business publications) Appears easy (seems like every one has a computer) Appears glamorous (look at the tech IPOs) Everyone is doing it / we can’t afford to miss out!! Opportunity is SEDUCTIVE Previous Next Kelly Burke University of Hawaii at Hilo

Business Problem l Gartner group advises online companies to beware Ø Ø Ø l Business Problem l Gartner group advises online companies to beware Ø Ø Ø l Within 2 years, 95 % of online dot. coms will fail e. g. , boo. com e-Toys layoffs Misuse or misreading of opportunity can be costly Ø e. g. , Nor-Cal EMS experience – long term “ill will” Lesson: opportunity without understanding and prioritization of objectives = problem l Implementation and Integration with business processes ARE King l Ø e. g. , Northwest and United Airlines fare wars Previous Next Kelly Burke University of Hawaii at Hilo

Models and Applications for E-Commerce Models and Applications for E-Commerce

Models of Electronic Commerce l Inter-organizational (B 2 B) Ø l Intra-organizational (B 2 Models of Electronic Commerce l Inter-organizational (B 2 B) Ø l Intra-organizational (B 2 E or Bin. B) Ø l EDI, supply-chain interaction, etc. E-portals, Lotus notes, etc. Business-to-consumer (B 2 C) Ø Direct marketing, e-malls, etc. Previous Next Kelly Burke University of Hawaii at Hilo

Models of Electronic Commerce l Consumer-to-consumer, peer-to-peer (C 2 C, P 2 P) Ø Models of Electronic Commerce l Consumer-to-consumer, peer-to-peer (C 2 C, P 2 P) Ø l E-marketplaces Ø l Auctions, electronic flea markets, etc. Exchanges Non-business Ø On-line communities (Geocities), news groups Previous Next Kelly Burke University of Hawaii at Hilo

Taxonomy of Applied Business Models l l l l l Brokerage (http: //globalsources. com/) Taxonomy of Applied Business Models l l l l l Brokerage (http: //globalsources. com/) Advertising (http: //www. altavista. com/) Infomediary (http: //www. job-search-engine. com/) Merchant (http: //www. etoys. com/) Manufacturer (http: //www. hp. com/) Affiliate (http: //s 1. amazon. com/) Community (http: //geocities. yahoo. com/) Subscription (http: //prodigy. com/) Utility (http: //prodigy. com/) Previous Next Kelly Burke University of Hawaii at Hilo

E-Business Initiatives E-Commerce— selling more goods via the Web l E-care for customers— providing E-Business Initiatives E-Commerce— selling more goods via the Web l E-care for customers— providing all kinds of customer support on-line l E-care for business partners— dedicated services l providing faster, better information for these important groups l E-care for employees— improving their effectiveness by making the right information and services available to them Previous Next Kelly Burke University of Hawaii at Hilo

E-Business Initiatives l E-procurement— working closely with customers and suppliers to improve the tendering E-Business Initiatives l E-procurement— working closely with customers and suppliers to improve the tendering process and to better administer the huge number of transactions involved l E-marketing communications— using the Internet to better communicate marketing stance Previous Next Kelly Burke University of Hawaii at Hilo

Electronic Commerce: Planning Framework l Management Ø l Infrastructure Ø l Business services, information Electronic Commerce: Planning Framework l Management Ø l Infrastructure Ø l Business services, information transfer, content, networks, interfaces Environmental constituents Ø l Strategy, planning, resources, monitoring People, policies, technical standards, stakeholder organizations Business applications Ø Catalogs, banking, procurement, auctions Previous Next Kelly Burke University of Hawaii at Hilo

Planning Your EC Path: Levels* of E-Commerce Development l l l Minimal online presence Planning Your EC Path: Levels* of E-Commerce Development l l l Minimal online presence On-line catalog On-line transactions Automated value chain Market site Super market site *Adapted from www. dotcomadvisor. com – 2000 Previous Next Kelly Burke University of Hawaii at Hilo

Level I E-Commerce Development: Minimal l Motivation Ø Ø l Information Ø Ø l Level I E-Commerce Development: Minimal l Motivation Ø Ø l Information Ø Ø l General pressure to “get on the net” Promote business entity Financial HR Technology issues Ø Ø Simple, In-sourced *Adapted from www. dotcomadvisor. com – 2000 Previous Next Kelly Burke University of Hawaii at Hilo

Level I E-Commerce Development: Minimal Human Resources Purchasing - Production - Sales Finance *Adapted Level I E-Commerce Development: Minimal Human Resources Purchasing - Production - Sales Finance *Adapted from www. dotcomadvisor. com – 2000 Previous Next Kelly Burke University of Hawaii at Hilo

Level II E-Commerce Development: On-line Catalog l Motivation Ø l Information Ø Ø l Level II E-Commerce Development: On-line Catalog l Motivation Ø l Information Ø Ø l Pressure from customers and competitors Product Service Technology issues Ø Ø Ø Searching, maintenance (e. g. , changing product information) Customer personalization On-line activity tracking *Adapted from www. dotcomadvisor. com – 2000 Previous Next Kelly Burke University of Hawaii at Hilo

Level II E-Commerce Development: On-line Catalog Human Resources Purchasing - Production - Sales Marketing Level II E-Commerce Development: On-line Catalog Human Resources Purchasing - Production - Sales Marketing Finance *Adapted from www. dotcomadvisor. com – 2000 Previous Next Kelly Burke University of Hawaii at Hilo

Level III E-Commerce Development: On-line Transactions l Motivation Ø l Information Ø l Catalog Level III E-Commerce Development: On-line Transactions l Motivation Ø l Information Ø l Catalog / order Technology issues Ø Ø l Exploit Internet as new channel of distribution Interactivity Integration of core businesses functions (e. g. , sales and accounting) Business issues Ø Ø Order fulfillment capacity Building site traffic *Adapted from www. dotcomadvisor. com – 2000 Previous Next Kelly Burke University of Hawaii at Hilo

Level III E-Commerce Development: On-line Transactions Human Resources Purchasing Production Sales Marketing Finance *Adapted Level III E-Commerce Development: On-line Transactions Human Resources Purchasing Production Sales Marketing Finance *Adapted from www. dotcomadvisor. com – 2000 Previous Next Kelly Burke University of Hawaii at Hilo

Level IV E-Commerce Development: Automated Value Chain l Motivation Ø Ø l Information Ø Level IV E-Commerce Development: Automated Value Chain l Motivation Ø Ø l Information Ø l Manufacturing, purchasing, shipping Technology issues Ø Ø l Customers and suppliers “want” more info Reduce cycle times and costs Systems integration Outsourcing Business issues Ø Sharing operational information with external entities *Adapted from www. dotcomadvisor. com – 2000 Previous Next Kelly Burke University of Hawaii at Hilo

Level IV E-Commerce Development: Automated Value Chain Human Resources Purchasing Production Sales Marketing Finance Level IV E-Commerce Development: Automated Value Chain Human Resources Purchasing Production Sales Marketing Finance *Adapted from www. dotcomadvisor. com – 2000 Previous Next Kelly Burke University of Hawaii at Hilo

Level V E-Commerce Development: Market Site l Motivation Ø l Information Ø Ø l Level V E-Commerce Development: Market Site l Motivation Ø l Information Ø Ø l Competitor’s products/services Third-party product/service comparisons Technology issues Ø Ø l Product comparisons, e. g. , http: //www. amazon. com Handling traffic loads Monitoring/mining traffic Business issues Ø Ø Corporate identity Objectivity of product comparisons *Adapted from www. dotcomadvisor. com – 2000 Previous Next Kelly Burke University of Hawaii at Hilo

Level V E-Commerce Development: Market Site Human Resources Reverse Marketing Purchasing Production Sales Marketing Level V E-Commerce Development: Market Site Human Resources Reverse Marketing Purchasing Production Sales Marketing Finance Competitors Previous Next Kelly Burke University of Hawaii at Hilo

Level VI E-Commerce Development: Super Market Site l Motivation Ø l Information Ø l Level VI E-Commerce Development: Super Market Site l Motivation Ø l Information Ø l Complimentary products/services Technology issues Ø l Become the “preferred” one-stop shop (i. e. , marketplace), e. g. , http: //www. sabre. com/ Integrating associates systems/information Business issues Ø Managing customer AND supplier suggestions and requirements *Adapted from www. dotcomadvisor. com – 2000 Previous Next Kelly Burke University of Hawaii at Hilo

Level VI E-Commerce Development: Super Market Site Complimentors Human Resources Reverse Marketing Purchasing Production Level VI E-Commerce Development: Super Market Site Complimentors Human Resources Reverse Marketing Purchasing Production Sales Marketing Finance Competitors Previous Next Kelly Burke University of Hawaii at Hilo

Facts and Forces in E-Commerce Facts and Forces in E-Commerce

Benefits of E-Commerce l Increase sales Ø Ø Ø l Distributed market exposure Target Benefits of E-Commerce l Increase sales Ø Ø Ø l Distributed market exposure Target narrow segments Create virtual communities which become targets Reduce costs Ø Ø Ø Sales inquiries Price quotes Product availability Enhance product value l Benefits work both ways – selling or buying l Previous Next Kelly Burke University of Hawaii at Hilo

Disadvantages of E-Commerce l l l High ticket and perishables don’t work Costs / Disadvantages of E-Commerce l l l High ticket and perishables don’t work Costs / benefits can be hard to quantify Difficult to integrate with existing databases Fast pace of technology change Potential legal issues Previous Next Kelly Burke University of Hawaii at Hilo

Big Business Survey Results Have a systematic, strategic approach to internet-based initiatives with top-level Big Business Survey Results Have a systematic, strategic approach to internet-based initiatives with top-level executive involvement (69% ) l Have full time units dedicated to e-business development (47%) l Extent of e-business functionality isn’t beyond basic “brochure ware” (25%) l Previous Next Kelly Burke University of Hawaii at Hilo

Big Business Survey Results E-business accounts for less than 5% of revenues (79%) l Big Business Survey Results E-business accounts for less than 5% of revenues (79%) l Able to process payments online (25%) l Creation of a convenient buying experience for customers on the Web is “extremely important” (80%) l Previous Next Kelly Burke University of Hawaii at Hilo

On-line Transaction Completion Previous Next Kelly Burke University of Hawaii at Hilo On-line Transaction Completion Previous Next Kelly Burke University of Hawaii at Hilo

Reasons for Abandoning On-line Purchases Previous Next Kelly Burke University of Hawaii at Hilo Reasons for Abandoning On-line Purchases Previous Next Kelly Burke University of Hawaii at Hilo

Other Common Site Problems Navigation problem l Finding information l Ø l cdw. com Other Common Site Problems Navigation problem l Finding information l Ø l cdw. com Site too slow Previous Next Kelly Burke University of Hawaii at Hilo

Forces Driving Online C 2 C Shopping Convenience (75%) l Cost (38%) l Context Forces Driving Online C 2 C Shopping Convenience (75%) l Cost (38%) l Context – opportunity to buy at right time and right place (e. g. , from work when I am thinking about that book) l Previous Next Kelly Burke University of Hawaii at Hilo

The Typical Online Customer l l l Age: 30 -49 Gender: Male Family status: The Typical Online Customer l l l Age: 30 -49 Gender: Male Family status: Married with children Household annual income: $60, 000 Amount spent online per year: $460 Source: Harris Interactive, Nielson Netratings Previous Next Kelly Burke University of Hawaii at Hilo

The Typical Online Customer l l l Completed online transactions: 10 Online sessions per The Typical Online Customer l l l Completed online transactions: 10 Online sessions per week: 6 Unique sites visited per week: 6 Average surfing session: 31 minutes Time per site per week: 32 minutes Time online per week: 3 hours, 8 minutes Source: Harris Interactive, Nielson Netratings Previous Next Kelly Burke University of Hawaii at Hilo

The WWW and How it Works for E-Commerce The WWW and How it Works for E-Commerce

The “Big Picture” In EC l l l WWW architecture How the web works The “Big Picture” In EC l l l WWW architecture How the web works Internet protocol URLs / domain names Internet communication Previous Next Kelly Burke University of Hawaii at Hilo

Client (Browser) Static Web Server Pages Product Database Previous Commerce Server Shopping Cart Next Client (Browser) Static Web Server Pages Product Database Previous Commerce Server Shopping Cart Next Dynamic Secure Transaction Server Kelly Burke University of Hawaii at Hilo

How the Web Works: Uniform Resource Locators Browsers differ in the way they are How the Web Works: Uniform Resource Locators Browsers differ in the way they are programmed l But if WWW is to be useful to many – we need standard way to identify a resource l Example: l Ø l http: //www. hawaii. edu: 2074/~kburke/494/ch_3. ppt URLs specify: Ø Ø protocol (e. g. http) host name (e. g. , www. hawaii. edu) connection port on host (e. g. 2074) path on host to resource (494/ch_3. ppt) Previous Next Kelly Burke University of Hawaii at Hilo

How the Web Works: The Internet Protocol TCP / IP protocol for communicating l How the Web Works: The Internet Protocol TCP / IP protocol for communicating l IP addressing l Network Information Center allocates blocks l Ø Class Address A 18. 155. 32. 5 B 128. 171. 12. 237 C 192. 66. 12. 56 Previous Next Network part 18 128. 171 192. 66. 12 Host part 155. 32. 5 12. 237 56 Kelly Burke University of Hawaii at Hilo

How the Web Works: Domain Names IP addresses are unfriendly l Assign a human How the Web Works: Domain Names IP addresses are unfriendly l Assign a human readable name to IP addresses l Placed in a distributed, hierarchical, lookup system (DNS) l Domains and Hosts - pahuleka. uhh. hawaii. edu l Ø Host || Domain || Host_name Org_name_1 Org_name_2 Org_type pahuleka uhh hawaii edu Previous Next Kelly Burke University of Hawaii at Hilo

How the Web Works: Protocols and Infrastructure l Messages versus Packets Ø i. e. How the Web Works: Protocols and Infrastructure l Messages versus Packets Ø i. e. , connection vs. connectionless HTTP Message (example: Page) HTTP TCP Packet 3 Packet 2 Packet 1 TCP IP Packet IP Previous Next Kelly Burke University of Hawaii at Hilo

Client (Browser) Static Web Server Pages Product Database Previous Commerce Server (Storefront) Shopping Cart Client (Browser) Static Web Server Pages Product Database Previous Commerce Server (Storefront) Shopping Cart Next Dynamic Secure Transaction Server Back to Hosting Kelly Burke University of Hawaii at Hilo

Planning for E-Commerce Planning for E-Commerce

Planning Your EC Path l Identify your organizational objectives Ø l Identify ways EC Planning Your EC Path l Identify your organizational objectives Ø l Identify ways EC can help achieve the objectives Ø l Want to increase effectiveness of salesperson’s time Permit customers to order online / salesperson can spend time showing new products Determine what resources are required Ø Ø Need: website, database, computer to process orders, trained user to process orders Sample planning checklist Previous Next Kelly Burke University of Hawaii at Hilo

Planning Your EC Path l Plan the implementation Ø Ø l Select implementation strategies Planning Your EC Path l Plan the implementation Ø Ø l Select implementation strategies - e. g. , http: //strategis. ic. gc. ca/SSG/ir 01580 e. html#imple mentation Outsource web site creation / maintenance, plan content, train users Determine how you will monitor EC results / performance Ø Require periodic site reports from ISP, measure increase in new product sales Previous Next Kelly Burke University of Hawaii at Hilo

Planning Your EC Path: Levels of E-Commerce Development l l l Minimal online presence Planning Your EC Path: Levels of E-Commerce Development l l l Minimal online presence On-line catalog On-line transactions Automated value chain Market site Super market site Previous Next Kelly Burke University of Hawaii at Hilo

Getting Started in E-Commerce Getting Started in E-Commerce

Getting Started Identify appropriate business model l Make or buy? l Ø l Connecting Getting Started Identify appropriate business model l Make or buy? l Ø l Connecting to the internet Ø l Do it in house or use a web site service provider? DSL, ISDN, Fractional T 1 Register a domain name Domain names are easier than IP addresses Ø Search on Network Solutions' Who. Is directory http: //www. networksolutions. com/cgi-bin/whois Ø Previous Next Kelly Burke University of Hawaii at Hilo

Obtaining a Domain Name Domain names are handled by DNS registrars l There are Obtaining a Domain Name Domain names are handled by DNS registrars l There are many web-based services for looking up names and/or registering them l Most of the popular names are taken, many by “squatters” l Registration of a name requires an annual fee and agreements with third parties for name service referral l Previous Next Kelly Burke University of Hawaii at Hilo

Domain Names. Once you’ve registered a name, you have first right of renewal, unless… Domain Names. Once you’ve registered a name, you have first right of renewal, unless… l Disputes are arbitrated by ICANN; most established trademark names and brands are recognized l Previous Next Kelly Burke University of Hawaii at Hilo

Getting Started l Components of the Firm’s Business Model Ø Ø Ø Ø Customer Getting Started l Components of the Firm’s Business Model Ø Ø Ø Ø Customer value Scope of products/services Price of value delivered Revenue sources Connected activities Implementation Capabilities Sustainability of advantage Previous Next Kelly Burke University of Hawaii at Hilo

Getting Started l “Do-it-yourself” website services Ø Ø l Hosting Ø Ø l http: Getting Started l “Do-it-yourself” website services Ø Ø l Hosting Ø Ø l http: //www. bigstep. com/ http: //store. yahoo. com/ Understanding what “hosting” means and your alternatives? Architecture? Target market? Ø Market research Previous Next Kelly Burke University of Hawaii at Hilo

What is Involved in Establishing a Web Site? l Web site considerations Ø Ø What is Involved in Establishing a Web Site? l Web site considerations Ø Ø Ø Ø The services wanted How much your company can contribute to the site, from manpower to electronic content Time to design your site Time to create and program your site Extra fees for software development Fees for off-the-shelf applications tools The size of the site Previous Next Ø Ø Ø Ø 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 Kelly Burke University of Hawaii at Hilo

Getting Started: Web Hosting Identify what you have resources and time to do l Getting Started: Web Hosting Identify what you have resources and time to do l Identify what will be done “outside” the firm l Identify which external parties will be involved l Ø l e. g. , designer, ISP, web host? commerce provider? Identify how you will assess their performance Ø Ø Decision metrics – e. g. , are they reliable? On-going performance metrics – e. g. , is their “uptime” what they claim? Previous Next Kelly Burke University of Hawaii at Hilo

Getting Started: The Marketing Process Traditional Process Make Product Sell Product Design, Procure, Make Getting Started: The Marketing Process Traditional Process Make Product Sell Product Design, Procure, Make Value Creation Choose Value Segmentation, Selection, Value Positioning Previous Price, Sell, Promote Provide Value Distribute, Service Communicate Value Develop Product, Price, Source, Distribute, Service Next Promote Kelly Burke University of Hawaii at Hilo

Getting Started: Market Research Define problem / research objectives Develop research plan Collect information Getting Started: Market Research Define problem / research objectives Develop research plan Collect information Analyze information Present findings Previous Next Kelly Burke University of Hawaii at Hilo

Getting Started: Market Research Resources l AMA Ø l Commerce. Net Ø l http: Getting Started: Market Research Resources l AMA Ø l Commerce. Net Ø l http: //www. stat-usa. gov/tradtest. nsf CIA World Factbook Ø l www. commerce. net National Trade Data Bank Ø l www. ama. org www. odic. gov/cia/publications On-line user survey data from Georgia Tech Ø http: //www. gvu. gatech. edu/user_surveys/ Previous Next Kelly Burke University of Hawaii at Hilo

Getting Started: Resources l Hawaii Ø Ø l State website: http: //www. cochawaii. com/ Getting Started: Resources l Hawaii Ø Ø l State website: http: //www. cochawaii. com/ Dept. of commerce : http: //www. state. hi. us/dcca/ Registering your business: http: //www. businessregistrations. com/home. html Chamber of commerce: http: //www. cochawaii. com/ Small businesses Ø Ø SBA: http: //www. sba. gov/ SBA PRO-Net (procurement network): • http: //www. pro-net. sba. gov/ Previous Next Kelly Burke University of Hawaii at Hilo

Getting Started: Resources l Various (legal, articles, research, policies, etc. ) Ø l Federal Getting Started: Resources l Various (legal, articles, research, policies, etc. ) Ø l Federal government policy Ø l http: //www. gtlaw. com. au/ecomm/ http: //www. ecommerce. gov/ Description of e. Fed (federal govt. interagency procurement system) Ø http: //www. sewp. nasa. gov/edi/hanson 9711. html Previous Next Kelly Burke University of Hawaii at Hilo

Web Site Design Issues in E-Commerce Web Site Design Issues in E-Commerce

Web Site Design l Navigation Ø Ø Ø Intuitive, predictable, consistent Longer pages - Web Site Design l Navigation Ø Ø Ø Intuitive, predictable, consistent Longer pages - fewer links Site map - especially smaller sites (VISIBLE - TOP? ) • Category names/descriptions MUST be meaningful Ø Searchability - perhaps for large sites BUT 50% more likely to find information if no search - why? • Searching can be imprecise and frustrating Ø Ø Easy to “quit” Links and “tabs” on top • http: //www. businessweek. com Previous Next Kelly Burke University of Hawaii at Hilo

Web Site Design Must distinguish between graphics design and web site design l Graphics Web Site Design Must distinguish between graphics design and web site design l Graphics design: your business image l Web site design: what’s on your site l Don’t get these confused! l Previous Next Kelly Burke University of Hawaii at Hilo

Graphic Design Don’t be tempted to skimp on developing your online image-your web site Graphic Design Don’t be tempted to skimp on developing your online image-your web site is your online storefront! l Best to hire out the design of the graphics and layout, even if you are editing the pages yourself l Some graphics design companies do web design, some do not yet; it may not matter. l Vector graphics allow you to scale images for your use throughout the business: on and offline l Previous Next Kelly Burke University of Hawaii at Hilo

Web Site Design l l l Planning - layout, mapping Purpose of site on Web Site Design l l l Planning - layout, mapping Purpose of site on home page What’s new section Content should fit the customer Style guide Ø l For consistent content design -especially over time Feedback mechanism(s) Ø Mailto, forms, request routing, auto responses Previous Next Kelly Burke University of Hawaii at Hilo

Designing it Yourself l l l l KISS philosophy rules: make the design easy Designing it Yourself l l l l KISS philosophy rules: make the design easy to navigate! Avoid clutter Avoid lots of graphics Avoid cutesy clip art Avoid lots of fonts Avoid long pages Provide site navigation tools Previous Next Kelly Burke University of Hawaii at Hilo

Web Site Design Loading time!!! l Pictures of some products but not others l Web Site Design Loading time!!! l Pictures of some products but not others l Interactivity l Ø Forms, object manipulation, applet running Error handling - inform user about l Being able to find out more about a particular item by a link in the cart l Instructions - ordering, interacting, feedback l Previous Next Kelly Burke University of Hawaii at Hilo

Web Site Design Backgrounds - readability and colors l Too much white space perceived Web Site Design Backgrounds - readability and colors l Too much white space perceived as “complex” l Be aware of screen resolution and position l Ø Ø Ø ISPs and design gurus use Unix workstations with monster monitors Typical users have 15” monitors Design for a “lowest common denominator” monitor Previous Next Kelly Burke University of Hawaii at Hilo

Web Site Design l Place items in frame to: Ø Ø Keep them on-screen Web Site Design l Place items in frame to: Ø Ø Keep them on-screen and To make display more effective • best banners on Netscape got 4% click-throughs • Placed in frames generated 30% click-throughs Ø l Use of tables can simulate frames Ø l e. g. , http: //www. businessweek. com Examples of bad design Ø e. g. , http: //www. webpagesthatsuck. com Previous Next Kelly Burke University of Hawaii at Hilo

Web Content Design l Content takes many shapes Ø Ø l Will change dramatically Web Content Design l Content takes many shapes Ø Ø l Will change dramatically More robust, comprehensive, and usable medium Challenges in developing a successful online storefront Ø Ø Choosing the right software solution for your site 3 options • build your own software • purchase a commercial software product • rent from a Web host Previous Next Kelly Burke University of Hawaii at Hilo

Security Issues in E-Commerce Security Issues in E-Commerce

Security Issues l To maintain a successful online business, you MUST Ø Secure your Security Issues l To maintain a successful online business, you MUST Ø Secure your E-Commerce transactions Ø Secure your servers and data Ø Formulate, post and follow a customer privacy policy Previous Next Kelly Burke University of Hawaii at Hilo

Securing Transactions Need to secure communications between client (customer at a web browser) and Securing Transactions Need to secure communications between client (customer at a web browser) and server (your web site and beyond) l What kinds of data need securing? Ø Credit card data (card number, expiration date, etc. ) Ø Personal data (phone #, address, etc. ) Ø Order data Ø Etc. l Previous Next Kelly Burke University of Hawaii at Hilo

Secure Communications Mean Authentication: want to make sure that each side is actually dealing Secure Communications Mean Authentication: want to make sure that each side is actually dealing with the right host and not some impostor or "man-in-the-middle" l Integrity: want to make sure that data is not altered during transit in any way l Privacy: want to ensure that data is not snooped by a third party in transit l Problem: how to achieve this on the insecure Internet? l Previous Next Kelly Burke University of Hawaii at Hilo

Encryption l A secret Encryption l A secret "key" is used to encrypt ("scramble") and decrypt ("unscramble") any data passed between browser and server. l The encryption technique and key are chosen so that it would be computationally infeasible to decipher the data without the key (i. e. break the code). Previous Next Kelly Burke University of Hawaii at Hilo

Encryption l If the key is kept secret, the Encryption l If the key is kept secret, the "right" encrypted data can only be generated by the browser or the server. Encrypted data is meaningless to snoopers and cannot be altered without detection. l This provides authentication, integrity and privacy. Previous Next Kelly Burke University of Hawaii at Hilo

Public Key Cryptography Public Keyreceiver Message Original Message Scrambled Message Private Keyreceiver Internet Scrambled Public Key Cryptography Public Keyreceiver Message Original Message Scrambled Message Private Keyreceiver Internet Scrambled Message Sender Receiver Private Keysender Digital Original Signature Message Scrambled Message Sender Previous Original Message Public Keysender Internet Scrambled Message Original Message Receiver Next Kelly Burke University of Hawaii at Hilo

Key Distribution Problem l l l Problem: how to get the key to the Key Distribution Problem l l l Problem: how to get the key to the other party over an insecure network like the Internet? Answer: public key encryption PKE uses two keys: whichever one is used to encrypt, the other one must be used to decrypt Typically, one key is made public, the other is kept secret. How does this help? Previous Next Kelly Burke University of Hawaii at Hilo

Session Keys If the browser can get the public key of the merchant, it Session Keys If the browser can get the public key of the merchant, it could encrypt a one-time session key and send it over. l Then the two sides could use the shared session key to encrypt and communicate securely. l To get the merchant's public key, the server could send it over to the browser when it first connects. l Problem: how does the browser know if it has the real public key and not a fraudulent one? l Previous Next Kelly Burke University of Hawaii at Hilo

Digital Signatures l l l A merchant's public key can be digitally signed. A Digital Signatures l l l A merchant's public key can be digitally signed. A digital signature is a token (a little bit of data) attached to the end of the key. Using encryption technology, it is possible to verify the authenticity of the key by examining the "signature". If you trust the key signer, you can trust that the key is valid. Who can be trusted to sign (vouch for) a merchant's public key? Previous Next Kelly Burke University of Hawaii at Hilo

Certificate Authority A certificate authority is a trusted third party that is in the Certificate Authority A certificate authority is a trusted third party that is in the business of signing public keys. A key signed by a CA is called a digital certificate. l A merchant purchases a certificate and puts it on his server. l When a browser makes a connection the certificate is downloaded. The browser verifies the signature on the certificate and extracts the public key. l The browser encrypts a session key and sends it to the server. Both sides can now securely communicate. Kelly Burke l Previous Next University of Hawaii at Hilo

Digital Certificates are available from a number of certificate authorities. One of the first, Digital Certificates are available from a number of certificate authorities. One of the first, and biggest, is Verisign (www. verisign. com) l Certificates start at about $150 and go up from there, depending on the expected use of the certificate. l A certificate is dated and is only good for a certain time period. After that date a browser will reject it. l To keep current, a merchant will need to purchase new certificates just before the old ones expire. l Previous Next Kelly Burke University of Hawaii at Hilo

Certificate Ø Ø Identifying the holder of a public key (Key-Exchange) Issued by a Certificate Ø Ø Identifying the holder of a public key (Key-Exchange) Issued by a trusted certificate authority (CA) Name : “Richard” key-Exchange Key : Signature Key : Serial # : 29483756 Other Data : 10236283025273 Expires : 6/18/96 Signed : CA’s Signature Previous Next Kelly Burke University of Hawaii at Hilo

Securing Your Site l Disable all nonessential services, programs and user accounts l Use Securing Your Site l Disable all nonessential services, programs and user accounts l Use complex passwords and change them reasonably often l Keep up with the latest security bulletins (CERT) and software updates Previous Next Kelly Burke University of Hawaii at Hilo

Securing Your Site l Monitor logs for suspicious activity l Consider installing a firewall, Securing Your Site l Monitor logs for suspicious activity l Consider installing a firewall, monitoring software and/or secure communications software l Have a periodic professional security audit l Does your “Host” provide all of this? Previous Next Kelly Burke University of Hawaii at Hilo

Customer Privacy l What does your company do with the data it collects from Customer Privacy l What does your company do with the data it collects from customers? Ø Does not release customer data outside the company, under any circumstances, except to legal authorities Ø makes names, addresses, etc. available to selected partners and third parties Ø sells customer data to marketers These are all valid policies! l Need to be up front: formulate a privacy policy, post it on your web site and follow it ! l Previous Next Kelly Burke University of Hawaii at Hilo

Payments in E-Commerce Payments in E-Commerce

Electronic Payment Protection Secure Sockets layer (SSL) or Secure Electronic Transaction (SET) protocols l Electronic Payment Protection Secure Sockets layer (SSL) or Secure Electronic Transaction (SET) protocols l Certification Authority (e. g. , http: //www. verisign. com) l Previous Next Kelly Burke University of Hawaii at Hilo

Secure Electronic Transaction (SET) Protocol l Cardholder, merchant, CA, payment gateway Ø l All Secure Electronic Transaction (SET) Protocol l Cardholder, merchant, CA, payment gateway Ø l All entities have certificates Cardholder keeps a security certificate with them Ø Ø Either in their computer - not mobile - or In the form of an “electronic wallet” Previous Next Kelly Burke University of Hawaii at Hilo

Secure Electronic Transaction (SET) Protocol Cardholder requests purchase from merchant l Merchant requests from Secure Electronic Transaction (SET) Protocol Cardholder requests purchase from merchant l Merchant requests from payment gateway: l Ø Ø l Payment authorization Payment capture Payment gateway obtains Ø Ø Authorization from card issuer Payment capture information Previous Next Kelly Burke University of Hawaii at Hilo

IC Card Reader Customer y Customer x With Digital Wallets Certificate Authority Electronic Shopping IC Card Reader Customer y Customer x With Digital Wallets Certificate Authority Electronic Shopping Mall Merchant A Merchant B Payment Gateway Protocol X. 25 Credit Card Brand Entities of SET Protocol in Cyber Shopping 95

Secure Electronic Transaction (SET) Protocol Merchant sends payment capture request to CA l CA Secure Electronic Transaction (SET) Protocol Merchant sends payment capture request to CA l CA verifies information with acquiring (merchant’s) bank l Merchant receives settlement from acquiring bank l Previous Next Kelly Burke University of Hawaii at Hilo

SET vs. SSL Secure Electronic Transaction (SET) Secure Socket Layer (SSL) Complex Simple SET SET vs. SSL Secure Electronic Transaction (SET) Secure Socket Layer (SSL) Complex Simple SET is tailored to the credit card payment to the merchants. SSL is a protocol for generalpurpose secure message exchanges (encryption). SSL protocol may use a certificate, but there is no payment gateway. So, the merchants need to receive both the ordering information and credit card information, because the capturing process should be initiated by the merchants. SET protocol hides the customer’s credit card information from merchants, and also hides the order information to banks, to protect privacy. This scheme is called dual signature. Previous Next Kelly Burke University of Hawaii at Hilo

Electronic Payment l Debit cards Ø l Used in B 2 C Electronic funds Electronic Payment l Debit cards Ø l Used in B 2 C Electronic funds transfer (EFT) / E-checks Ø Ø Electronic version of paper checking Combines certificates and signatures with payment Used in B 2 B e. Pay by Visa, Safe. Check (see www. echeck. org) Previous Next Kelly Burke University of Hawaii at Hilo

e. Check Process Flow Previous Next Kelly Burke University of Hawaii at Hilo e. Check Process Flow Previous Next Kelly Burke University of Hawaii at Hilo

Electronic Payment l Stored-value cards, e-cash (e. g. , Mondex, Cyber. Coin, Visa. Cash) Electronic Payment l Stored-value cards, e-cash (e. g. , Mondex, Cyber. Coin, Visa. Cash) Ø Ø permit cost-effective “micropayments” mondex smart cards • • battery operated card readers swipe card value transferred to retailer’s terminal no authorization required Previous Next Kelly Burke University of Hawaii at Hilo

Electronic Payment l Electronic wallet (Fujitsu, Mondex) Ø Ø Ø can be used for Electronic Payment l Electronic wallet (Fujitsu, Mondex) Ø Ø Ø can be used for Internet transaction settlement handheld terminal values are transferred from customer’s account to customer’s card or to merchant’s account via either the card or a Web connection can store values for different currencies http: //www. mondex. com/ Previous Next Kelly Burke University of Hawaii at Hilo

Electronic Payment l Closed e-cash system Ø Ø l Open e-cash system Ø Ø Electronic Payment l Closed e-cash system Ø Ø l Open e-cash system Ø Ø l Values recharged (transferred) only by bank Visa. Cash Values can be transferred between cards Mondex e. Mail-grams Ø Ø Pay money to or receive money from anyone with email e. g. , www. Paypal. com Previous Next Kelly Burke University of Hawaii at Hilo

Marketing Issues in E-Commerce Marketing Issues in E-Commerce

Marketing Your Web Site One-to-one marketing l Customer service l Banner ads l Search Marketing Your Web Site One-to-one marketing l Customer service l Banner ads l Search engines l Previous Next Kelly Burke University of Hawaii at Hilo

One-to-One Marketing l Relationship marketing Ø l “Overt attempt of exchange partners to build One-to-One Marketing l Relationship marketing Ø l “Overt attempt of exchange partners to build a long term association, characterized by purposeful cooperation and mutual dependence on the development of social, as well as structural, bonds” “Treat different customers differently” Ø Able to change the manner its products are configured or its service is delivered, based on the individual needs of individual customers Previous Next Kelly Burke University of Hawaii at Hilo

One-to-One Marketing l Customer loyalty Ø Ø Purchase behavior One of the most significant One-to-One Marketing l Customer loyalty Ø Ø Purchase behavior One of the most significant contributors to profitability Increase profits; strengthen market position; become less sensitive to price competition; increase crossselling success; save cost, etc. Real world examples • 1 -800 -FLOWERS • Amazon. com • Federal Express (Fed. Ex) Previous Next Kelly Burke University of Hawaii at Hilo

One-to-One Marketing l Building and maintaining customer loyalty Ø Ø Maintain continuous interactions between One-to-One Marketing l Building and maintaining customer loyalty Ø Ø Maintain continuous interactions between consumers and business Make a commitment to provide all aspects of the business online Build different sites for different levels of customers Willing to invest capital, both human and financial, in the information systems, to insure continuous improvement in the supporting technology as it becomes available Previous Next Kelly Burke University of Hawaii at Hilo

One-to-One Marketing l Building and maintaining customer loyalty Ø Ø Make a commitment to One-to-One Marketing l Building and maintaining customer loyalty Ø Ø Make a commitment to use the information collected about customers in an ethical manner Realistic managerial expectations in the payback period and cost recovery Set acceptable standards for response time in customer service (24 -48 hours); Use intelligent agents to expedite and standardize responses whenever possible Ability to change and customize information and services quickly and inexpensively is a must Previous Next Kelly Burke University of Hawaii at Hilo

One-to-One Marketing l Customer service Ø A new look and feel Put the burden One-to-One Marketing l Customer service Ø A new look and feel Put the burden on the customer to treat a problem or inquiry and receive information bit by bit Previous Next Install Web servers which allow each customer to create individual web pages that can be customized to record purchases and preferences Kelly Burke University of Hawaii at Hilo

One-to-One Marketing l Customer service Ø Ø Information can be directed to the customer One-to-One Marketing l Customer service Ø Ø Information can be directed to the customer efficiently Creation of a database which records purchases, problems, and requests is facilitated Information can now be traced analyzed for immediate response If customer service options and solutions do not maintain the same level of excitement and interaction as the advertising and sales presentations, the level of intensity declines and the vendor runs the risk of losing customers Previous Next Kelly Burke University of Hawaii at Hilo

Implementing Customer Service in Cyberspace l Product Life Cycle Ø Ø Phase 1. Requirements Implementing Customer Service in Cyberspace l Product Life Cycle Ø Ø Phase 1. Requirements : assisting the customer to determine needs Phase 2. Acquisition : helping the customer to acquire a product or service Phase 3. Ownership : supporting the customer on an ongoing basis Phase 4. Retirement : helping the client to dispose of a service or product Previous Next Kelly Burke University of Hawaii at Hilo

Implementing Customer Service in Cyberspace l Types of Customer Service Functions Ø Ø Answering Implementing Customer Service in Cyberspace l Types of Customer Service Functions Ø Ø Answering customer inquires Providing technical and other information Letting customers track accounts or order status Allowing customers to customize and order online Previous Next Kelly Burke University of Hawaii at Hilo

Implementing Customer Service in Cyberspace Companies understand their customers’ needs and buying habits better Implementing Customer Service in Cyberspace Companies understand their customers’ needs and buying habits better Companies customize their future marketing efforts Doing business via Web Previous Next Kelly Burke University of Hawaii at Hilo

Tools of Customer Service l Personalized Web Pages Ø Ø l Chat Room Ø Tools of Customer Service l Personalized Web Pages Ø Ø l Chat Room Ø l Discuss issues with company experts; with other customers E-mail Ø l Used to record purchases and preference Direct customized information to customers efficiently Disseminate product information, conduct customer inquiry correspondence FAQs Ø Not customized, no personalized feeling, no contribution to relationship marketing Previous Next Kelly Burke University of Hawaii at Hilo

Tools of Customer Service l Help Desks and Call Centers Ø Ø Ø A Tools of Customer Service l Help Desks and Call Centers Ø Ø Ø A comprehensive customer service entity EC vendors take care of customer service issues communicated through various contact channels Telewebs • combines Web channels, such as automated e-mail reply, Web knowledge bases and portal-like self service with call center agents or field service personnel Ø Internet • a medium of instant gratification • demand for both prompt replies and proactive alerts Previous Next Kelly Burke University of Hawaii at Hilo

Marketing Your Web Site: Banner Ads l People don’t scroll sideways Ø l Get Marketing Your Web Site: Banner Ads l People don’t scroll sideways Ø l Get everything on one screen width Studies find the lower right corner to be most effective location for an ad Ø http: //www. webreference. com/dev/banners/ Placing banners last is more effective than first l Placing banners top and bottom is more effective than just top l Previous Next Kelly Burke University of Hawaii at Hilo

Marketing Your Web Site l Web malls Ø Ø l Host sites and provide Marketing Your Web Site l Web malls Ø Ø l Host sites and provide shopping “portals” e. g. , http: //store. yahoo. com/ Search engines Ø Passive strategy – “meta” tags • e. g. , www. sba. gov Ø Active strategy – submit site to search engines • e. g. , http: //www. submitit. com/ l E-mail list rental Ø Ø Opt-in mailing lists (direct marketing) e. g. , http: //www. netcreations. com/main? page=welcome Previous Next Kelly Burke University of Hawaii at Hilo

Publicizing your site l l l Simply registering your domain name will not bring Publicizing your site l l l Simply registering your domain name will not bring people to your “door” The ugly reality of search engines: pay to play How to get found in a billion web pages? Get mentioned on TV Use your “bricks” to promote your “clicks” Develop relationships with other online sites Previous Next Kelly Burke University of Hawaii at Hilo

Infrastructure Issues in E-Commerce Infrastructure Issues in E-Commerce

Infrastructure Requirements l l l Internet service Site content Site Design Site / Commerce Infrastructure Requirements l l l Internet service Site content Site Design Site / Commerce functionality Database Previous Next Kelly Burke University of Hawaii at Hilo

Client (Browser) Static Web Server Pages Product Database Previous Commerce Server (Storefront) Shopping Cart Client (Browser) Static Web Server Pages Product Database Previous Commerce Server (Storefront) Shopping Cart Next Dynamic Secure Transaction Server Kelly Burke University of Hawaii at Hilo Back to Hosting

Web Hosting Issues l l l Bandwidth Capabilities and specifications Firewall system Wireless delivery Web Hosting Issues l l l Bandwidth Capabilities and specifications Firewall system Wireless delivery Buy, rent, or lease Maintenance, upgrade, and service of the equipment Previous Next Kelly Burke University of Hawaii at Hilo

Developing E-Commerce Infrastructure l l l Hosting the site Obtaining a domain name Graphics Developing E-Commerce Infrastructure l l l Hosting the site Obtaining a domain name Graphics design and web site design Web site programming Secure transactions and purchasing Previous Next Kelly Burke University of Hawaii at Hilo

Hosting l Where will the site be hosted? Ø Ø Ø Your premises Leased Hosting l Where will the site be hosted? Ø Ø Ø Your premises Leased space at an ISP Rack mounted server at a professional hosting company Managed host at a hosting co. Custom outsourced site “Template” outsourced site (e. g. Yahoo storefront) Previous Next Kelly Burke University of Hawaii at Hilo

Hosting: Doing it Yourself Buy servers and network equipment and lease bandwidth (“pipes”) from Hosting: Doing it Yourself Buy servers and network equipment and lease bandwidth (“pipes”) from Telco l Advantages: l Ø Ø Complete control over all aspects of site, including security, functionality, integration with existing business systems Cost savings once level of online commerce reaches a certain threshold Disadvantages: l Ø Ø Ø IT costs to manage equipment, systems Initial capital investment Physical infrastructure impact Previous Next Kelly Burke University of Hawaii at Hilo

Hosting: Lease Space at an ISP Rent space for your equipment to be hosted Hosting: Lease Space at an ISP Rent space for your equipment to be hosted at an ISP l Pay bulk bandwidth charges to ISP l Advantages: l Ø Ø Complete control over site Smaller start up expenses Disadvantages: l Ø Ø Ø Must manage your own systems, usually remotely Cost of purchasing equipment Harder to integrate with existing business systems Previous Next Kelly Burke University of Hawaii at Hilo

Hosting: Lease Equipment at Hosting Vendor Rent equipment at a professional hosting company l Hosting: Lease Equipment at Hosting Vendor Rent equipment at a professional hosting company l Pay bulk bandwidth charges (sometimes rolled into hosting package) l Advantages: l Ø Ø l Aging equipment is not your problem Smaller start up costs Disadvantages: Ø Must manage your own system Previous Next Kelly Burke University of Hawaii at Hilo

Hosting: Managed Host at Hosting Vendor Rent use of a system at a hosting Hosting: Managed Host at Hosting Vendor Rent use of a system at a hosting vendor System is managed for you Can mix and match services (web, email, ordering, etc. ) You are responsible for site content Advantages: l l l Ø Ø System is managed for you You maintain control over site design, functionality Disadvantages: l Ø Ongoing expenses Previous Next Kelly Burke University of Hawaii at Hilo

Hosting: Custom Outsourced Site Outsource the development of the web site l May be Hosting: Custom Outsourced Site Outsource the development of the web site l May be a different entity than hosting co. (e. g. consultant) l Advantages: l Ø Ø Custom designed site No web development or system management required on your part Disadvantages: l Ø Less control over costs Previous Next Kelly Burke University of Hawaii at Hilo

Hosting: Template Outsourced Site Use pre-designed “templates” for building site from dot-coms catering to Hosting: Template Outsourced Site Use pre-designed “templates” for building site from dot-coms catering to small business owners l Advantages: l Ø Very low cost (some free!) Disadvantages: l Ø Ø Ø Cookie-cutter feel to sites Little control over site or design Customer service? Previous Next Kelly Burke University of Hawaii at Hilo

Web Programming: Implementing the Software Infrastructure Most E-Commerce sites are not a static collection Web Programming: Implementing the Software Infrastructure Most E-Commerce sites are not a static collection of web pages, but dynamic interactive systems l Need to develop the software infrastructure that drives the site: databases, business rules, secure ordering, web user interfaces, etc. l Q: Do you need to interface your site to your existing IT infrastructure? Database? l Previous Next Kelly Burke University of Hawaii at Hilo

Web Programming: Implementing the Software Infrastructure l l l There are “turnkey” solutions for Web Programming: Implementing the Software Infrastructure l l l There are “turnkey” solutions for implementing some of this software infrastructure Unless you have a simple business, these probably won’t be satisfactory Reality check: custom software development takes time and money Programmers are not artists, and vice versa! Don’t hire programmers to write web pages and don’t hire webmasters to write sophisticated software. Don’t hire either one to design your corporate image! Previous Next Kelly Burke University of Hawaii at Hilo

Web Programming: Implementing the Software Infrastructure l Electronic storefront must contain: Ø Ø Ø Web Programming: Implementing the Software Infrastructure l Electronic storefront must contain: Ø Ø Ø A merchant system or storefront that provides the merchant’s catalog with products, prices and promotions A transaction system for processing orders and payments and other aspects of the transaction A payment gateway that routes payments through existing financial systems primarily for the purpose of credit card authorization and settlement Previous Next Kelly Burke University of Hawaii at Hilo

Web Programming: Implementing the Software Infrastructure l Purchase a suite of software that claims Web Programming: Implementing the Software Infrastructure l Purchase a suite of software that claims to integrate storefront functions into a single box Ø Ø Ø i. Cat Corp. ’s Electronic Commerce Suite and Commerce Publisher Open Market’s Transact and Live. Commerce http: //www. openmarket. com Microsoft Corp. ’s Site Server Commerce Edition IBM Corp. ’s Net. Commerce Pro Saqqara Systems’ Step. Search Professional Previous Next Kelly Burke University of Hawaii at Hilo

Web Programming: Implementing the Software Infrastructure Ø Electronic Commerce Suites • Offer merchants greater Web Programming: Implementing the Software Infrastructure Ø Electronic Commerce Suites • Offer merchants greater flexibility, specialization, customization and integration in supporting complete front and back-office functionality Internet Catalog Application Customer Management, Registration, Profiles, Service Order Capture, Completion Web Browser Web Server Payment Processing (SET & Purchase Order) Open Market E-Commerce Server Architecture Previous Next Catalog Database Customer Database Order Database Fulfillment Systems Payment Database Financial Network Kelly Burke University of Hawaii at Hilo

Web Programming: Implementing the Software Infrastructure l Making a Web catalog into a multimedia Web Programming: Implementing the Software Infrastructure l Making a Web catalog into a multimedia extravaganza Ø Not easy and expensive Ø Lower end systems : begin at $25, 000 Ø High end systems : $250, 000 to $2 million Previous Next Kelly Burke University of Hawaii at Hilo

Secure Transactions and Ordering l l l Payment handling: one of the easiest things Secure Transactions and Ordering l l l Payment handling: one of the easiest things to outsource To handle it on your own web server, you need to obtain a certificate from a Certificate Authority (CA) Certificates allow authenticated, encrypted, trusted connections Certificates expire and must be renewed for an annual fee You probably should be concerned about secure transactions even if payment handling is outsourced Previous Next Kelly Burke University of Hawaii at Hilo

Review of E-Commerce Infrastructure l l l Hosting the site Obtaining a domain name Review of E-Commerce Infrastructure l l l Hosting the site Obtaining a domain name Graphics design and web site design Web site programming Secure transactions and purchasing Previous Next Kelly Burke University of Hawaii at Hilo

Review of E-Commerce Infrastructure l Putting together a successful E-Commerce web site requires different Review of E-Commerce Infrastructure l Putting together a successful E-Commerce web site requires different skills from different people: Ø Ø l Graphics designer Webmaster Programmer(s) Other business entities: marketing, etc. Few people have all these effective skills Previous Next Kelly Burke University of Hawaii at Hilo

Review of E-Commerce Infrastructure The good news: there are many choices for hosting and Review of E-Commerce Infrastructure The good news: there are many choices for hosting and outsourcing the infrastructure development l Your choices will depend on: l Ø Ø Ø How central is the E-Commerce aspect of your business to the core focus of your business? What is your current investment in IT and existing infrastructure? What are your available resources for capital investment? Previous Next Kelly Burke University of Hawaii at Hilo

Outsourcing: Pros and Cons l Pros Ø Ø Ø l Faster Resources readily available Outsourcing: Pros and Cons l Pros Ø Ø Ø l Faster Resources readily available Competitive - many alternatives You can focus on what you do best You’ll learn as you go Cons Ø Ø Can be costly Always risky – need to do research before and monitor performance during and after Previous Next Kelly Burke University of Hawaii at Hilo

Monitoring Website Performance l Log details Ø Ø l Visit details Ø Ø Ø Monitoring Website Performance l Log details Ø Ø l Visit details Ø Ø Ø l Server log Access log Hits What pages do they visit? How long do they spend on a page? What “areas” of a page did they scan? Relationship of hits/pages visited/orders Feedback survey Previous Next Kelly Burke University of Hawaii at Hilo

Future Developments to Watch For in E-Commerce Future Developments to Watch For in E-Commerce

Future Developments in EC l Public portals Ø Ø l Content Community Commerce e. Future Developments in EC l Public portals Ø Ø l Content Community Commerce e. g. , http: //www. ivillage. com Exchanges Ø Ø Ø Industry sponsored Private Public Previous Next Kelly Burke University of Hawaii at Hilo

Future Developments in EC l Enterprise E-Portals Ø Ø Ø E-Commerce systems and legacy Future Developments in EC l Enterprise E-Portals Ø Ø Ø E-Commerce systems and legacy systems focus on transactions, Auctions focus on bringing together buyers and sellers Operational systems track orders and inventory. E-Portals tie together all of these disparate systems Enabling the flow of information to employees, customers and partners Previous Next Kelly Burke University of Hawaii at Hilo

Future Developments in EC l Wireless / Mobile Web Access Ø Technologies • handhelds Future Developments in EC l Wireless / Mobile Web Access Ø Technologies • handhelds (e. g. , http: //www. palm. com/) Ø Applications • CRM, commerce Ø Implications • customer may shop your physical store, see long lines, order online for delivery to home (another state? ) • have to cross market EC capability (e. g. , in store marketing) Previous Next Kelly Burke University of Hawaii at Hilo




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