04 ecs lect building ecommerce system

COMP 6350 eCommerce Systems

Alexander Nikov

4. Building eCommerce system

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Explain the process that should be followed in building an e-commerce system.

Describe the major issues surrounding the decision to outsource site development and/or hosting.

Identify and understand the major considerations in choosing Web server and e-commerce merchant server software.

Explain the issues involved in choosing the most appropriate hardware for an e-commerce site.

Identify additional tools that can improve Web site performance.

Explain the important considerations involved in developing a mobile Web site and building mobile applications.

Teaching Objectives

Tommy Hilfiger Right-Sizes Its Web StoreClass Discussion

What are the factors you should take into account when sizing a Web sites infrastructure?

Why are peak times an important factor to consider?

What reasons were behind Hilfigers choice of ATG for its Web site solution?

How can operators of smaller sites deal with the right-sizing issue?

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Outline

1. Building eCommerce system: A systematic approach2. Choosing software for eCommerce system3. Choosing hardware for eCommerce system4. Other eCommerce system tools5. Developing mobile system6. Building eCommerce system: A customer-oriented approach

Building an eCommerce system: A Systematic Approach

Most important management challenges:

Developing a clear understanding of business objectives

Knowing how to choose the right technology to achieve those objectives

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1.1. Pieces of the system-Building Puzzle

Main areas where you will need to make decisions: Human resources and organizational capabilities

Creating team with skill set needed to build and manage a successful system

Hardware

Software

Telecommunications

system design

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1.2. The Systems Development Life Cycle

Methodology for understanding business objectives of a system and designing an appropriate solution

Five major steps:1. Systems analysis/planning2. Systems design3. Building the system4. Testing5. Implementation

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Web Site Systems Development Life Cycle

Figure 4.2, Page 2034-9

1.3. System Analysis

Business objectives: List of capabilities you want your system to have

System functionalities: List of information system capabilities needed to

achieve business objectives

Information requirements: Information elements that system must produce in

order to achieve business objectives

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Table 4.1, Page 2044-11

1.4. Systems Design: Hardware and Software Platforms

System design specification: Description of main components of a system and

their relationship to one another Two components of system design:

1. Logical design Data flow diagrams, processing functions, databases

2. Physical design Specifies actual physical, software components, models, etc.

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Logical Design for a Simple Web Site

Figure 4.3 (a), Page 2064-13

Physical Design for a Simple Web Site

Figure 4.3 (b), Page 2064-14

1.5. Build/Host Your Own versus Outsourcing

Outsourcing: hiring vendors to provide services involved in building site

Build own vs. outsourcing: Build your own requires team with diverse skill set; choice of software

tools; both risks and possible benefits

Host own vs. outsourcing Hosting: hosting company responsible for ensuring site is accessible

24/7, for monthly fee Co-location: firm purchases or leases Web server (with control over its

operation), but server is located at vendors facility

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Choices in Building and Hosting


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1.6.Testing, Implementation, and Maintenance

Testing Unit testing System testing Acceptance testing

Implementation and maintenance: Maintenance is ongoing Maintenance costs: parallel to development costs Benchmarking

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1.7. Factors in Web Site Optimization


1.8.Web Site Budgets

From $5,000 to millions of dollars/year Components of budget:

System maintenance System development Content design & development Hardware Telecommunications Software

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Outline


2.1. Simple versus Multi-tiered Web Site Architecture

System architecture Arrangement of software, machinery, and tasks in an information

system needed to achieve a specific functionality

Two-tier Web server and database server

Multi-tier Web application servers Backend, legacy databases

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Two-Tier eCommerce Architecture

Figure 4.9(a), Page 2174-24

Multi-tier eCommerce Architecture

Figure 4.9(b), Page 2174-25

2.2. Web Server Software Apache

Leading Web server software (66% of market) Works only with UNIX, Linux OSs

Microsofts Internet Information Server (IIS) Second major Web server software (16% of market) Windows-based

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Table 4.3, Page 2184-27

Site Management Tools Basic tools

Included in all Web servers

Verify that links on pages are still valid

Identify orphan files

Third-party software and services for advanced site management Monitor customer purchases, marketing campaign

effectiveness, etc.

E.g. WebTrends Analytics 10, Google Analytics

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Dynamic Page Generation Tools

Dynamic page generation: Contents of Web page stored as objects in database and fetched

when needed

Common tools: CGI, ASP, JSP, ODBC Advantages

Lowers menu costs

Permits easy online market segmentation

Enables cost-free price discrimination

Enables Web content management system (WCMS)

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2.3. Application Servers

Web application servers: Provide specific business functionality required for a

Web site

Type of middleware Isolate business applications from Web servers and

databases

Single-function applications increasingly being replaced by integrated software tools that combine all functionality needed for eCommerce site

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Table 4.4, Page 2224-31

2.4. eCommerce Merchant Server Software

Provides basic functionality for online sales Online catalog

List of products available on Web site

Shopping cart Allows shoppers to set aside, review, edit selections, and

then make purchase

Credit card processing Typically works in conjunction with shopping cart

Verifies card and puts through credit to companys account at checkout

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2.5. Merchant Server Software Packages

Integrated environment with most or all of functionality needed

Key factors in selecting a package Functionality Support for different business models Business process modeling tools Visual site management and reporting Performance and scalability Connectivity to existing business systems Compliance with standards Global and multicultural capability Local sales tax and shipping rules

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2.6. Building Your Own eCommerce system

Options for small firms

Hosted eCommerce sites, e.g., Yahoos Merchant Solutions

Site building tools

E-commerce templates

Open-source merchant server software

Enables you to build truly custom site

Requires programmer with expertise, time

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Outline


Choosing the Hardware for an eCommerce system

Hardware platform:

Underlying computing equipment that system uses to achieve eCommerce functionality

Objective:

Enough platform capacity to meet peak demand without wasting money

Important to understand the different factors that affect speed, capacity, and scalability of a site

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3.1. Right-Sizing Your Hardware Platform: The Demand Side

Demand is the most important factor affecting speed of site

Factors in overall demand: Number of simultaneous users in peak periods Nature of customer requests (user profile) Type of content (dynamic versus static Web pages) Required security Number of items in inventory Number of page requests Speed of legacy applications

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Degradation in Performance as Number of Users IncreasesResource Utilization

Figure 4.11 (a), Page 2294-39 4-40

Figure 4.11 (b), Page 229

Degradation in Performance as Number of Users IncreasesNumber of Connections

3.2.Right-Sizing Your Hardware Platform: The Supply Side

Scalability: Ability of site to increase in size as demand warrants

Ways to scale hardware: Vertically

Increase processing power of individual components

Horizontally Employ multiple computers to share workload

Improve processing architecture

4-41Table 4.8, Page 231

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Vertically Scaling a System


Horizontally Scaling a System


Table 4.9, Page 2334-45 4-46

Outline


4.1.Other eCommerce system Tools

Web site design: Basic business considerations Enabling customers to find and buy what they need

Tools for Web site optimization Search engine placement

Metatags, page titles, content Identify market niches, localize site Expertise Links Search engine ads Local eCommerce

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Table 4.11, Page 235 4-49

4.3.Tools for Interactivity and Active Content

Web 2.0 design elements: Widgets, Mashups

CGI (Common Gateway Interface)

ASP (Active Server Pages)

Java, JSP, and Javascript

ActiveX and VBScript

Coldfusion

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4.4.Personalization Tools Personalization

Ability to treat people based on personal qualities and prior history with site

Customization

Ability to change the product to better fit the needs of the customer

Cookies

Primary method to achieve personalization

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4.5.The Information Policy Set

Privacy policy

Set of public statements declaring how site will treat customers personal information that is gathered by site

Accessibility rules

Set of design objectives that ensure disabled users can affectively access site

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Outline

1. Building eCommerce system: A systematic approach2. Choosing software for eCommerce system3. Choosing hardware for eCommerce system4. Other eCommerce system tools5. Developing mobile system6. Building eCommerce system:

A customer-oriented approach

Developing a Mobile Web Presence

Three types of mobile e-commerce software Mobile Web system Mobile Web app Native app

Planning and building mobile presence As with regular Web site, use systems analysis/design to

identify unique and specific business objectives

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Table 4.13, Page 246 4-55

Developing a Mobile Web Presence

Design considerations Platform constraints: Smartphone/tablet

Performance and cost Mobile Web system:

Least expensive Mobile app:

Can utilize browser API Native app:

Most expensive; requires more programming

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Outline

1. Building eCommerce system: A systematic approach2. Choosing software for eCommerce system3. Choosing hardware for eCommerce system4. Other eCommerce system tools5. Developing mobile system6. Building eCommerce system:

A customer-oriented approach

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What Does a Web Site Do?

Web site is a virtual storefront The customers are cyber-customers Emphasis is on

Need Efficiency Good response time Availability of procedures that expedite a sale

A Web site is basically a series of pages with links to other pages or other sites

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Key Components of a Web Site

Homepage is the first page of a site that appears when one visits a URL address

Web page is a carrier of information reached by clicking a button on a homepage

Link is a connector that makes it possible to go to another Web page on the site or on the Internet, or go back to the homepage

Banner is a graphic display on a Web page, usually used for advertising

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Web Site Benefits

Reach millions of customers quickly and reliably

Establish a presence in cyberspace

Leverage advertising costs

Reduce the cost of serving customers

Promote public relations

Reach international markets and customers

Test-market new product or services

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5.1. Site Building Life Cycle

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Objectives of a Customized Web Site

Speed up the interactive process

Reduce human intervention to a minimum

Save time

Make buying and selling through the site cost-effective

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Planning Stage

Provide for quick application development and deployment

Define sites goals Determine who will be involved in defining the goals Determine if there is time or a need for formal definition

Decide on the sites mission

Who is the intended audience?

Why will people want to visit the stage?

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Define the Audience and the Competition

Determining your audience, their goals and objectives

Generate a list of intended audiences

Identify what prospective customers want

Goal is to enhance site visitors experience Escorting them quickly to the merchandise Speed and responsiveness are crucial The seven-second rule

See how well the site matches users needs

Competitive analysis

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Build Site Content

What the site will contain

Content inventory is a list of the company activities (contents) that make up the Web site

Determine the order of priority of each function or department

The designer needs to determine the feasibility of each function

Content and functional requirements

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Define the Site Structure

Site structure is an organized layout of a merchants departments or functions that becomes the basis for the Web site

Easy site navigation Well-laid-out pages and templates The structure that holds the entire site together

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Architectural Blueprints of Site Contents

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Develop the Visual Design

Find main goal, attracting and retaining visitors

Use a layout grid to show how well the elements fit together

Branding companys logo on each page

Content is the critical part of a page

Establish look and feel of the site via page mock-ups

Personalization Tracking the users behavior Cookies are bits of code that sit in a users browser memory and

identify the visitor to the Web site

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Design Languages

Hypertext Markup Language (HTML) Text-based Standards

Java is another popular language for designing

Multimedia-enriched content Macromedia Flash and Shockwave Extensible Markup Language (XML) Vector Markup Language (VML)

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5.2.Constructing Your Web Site

Storefront Building Service

Web-Hosting Service Web host representative meets with you and explains the aspects of

Web design The web host begins to collect content from you to build a custom

Web site Once the website passes the test, the firm begins to write the

keywords and metatags and submits the Web site to leading search engines, Web directories, and industry sites

A reputable web host also supports maintenance and future enhancements in a yearly contract or a long term agreement

Do It Yourself

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5.3.Web Navigation Design

Creating user profiles Customer profile is a brief study of the type of person who might visit

your Web site

Using scenarios Scenario is a situation that helps you view the navigation process

and the site as a point of entry

What about cultural differences?

Design a user-friendly site

Design guidelines

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5.4.Design Criteria

Appearance and quality design Quality assurance (QA) is a process used to check the readiness of a site before it is

loaded on the Web Style guide is a template designed to measure the materials used to build the Web

site

Public exposure

Viewability and Resolution

Consistency

Scalability

Security

Performance

Navigation and interactivity

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Why Web Site Projects Fail?

Unrealistic deadlines

Incompetent or inadequate staffing

Poor quality design

Changing requirements of the client

Filling Web positions

DISCUSSION QUESTIONS

1. Discuss some of the unique features that must be taken into account when designing a mobile Web presence.

2. Name the six main pieces of the e-commerce site puzzle.3. Why is system testing important? Name the three types of testing and their relation to each

other.4. Compare the costs for system development and system maintenance. Which is more

expensive, and why?What are the three main factors to consider when choosing the best platform for your Web site?

5. Why is Web server bandwidth an important issue for eCommerce sites?6. What are the eight most important factors impacting Web site design, and how do they

affect a sites operation. 7. What are some of the policies eCommerce businesses must develop before launching a site

and why?8. Discuss the differences between a simple logical and simple physical Web site design.9. Why is a Web site so costly to maintain?

Discuss the main factors that impact cost?10. What are the three main factors to consider when choosing the best platform for your Web

site?

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1. Discuss some of the unique features that must be taken into account when designing a mobile Web

presence. Designing a mobile Web presence is somewhat different from designing a

Web site that will be accessed via a traditional desktop computer. For instance, mobile hardware is smaller, and there are more resource

constraints on data storage and processing power. The mobile platform is also constrained by slower connection speeds than

provided by traditional desktop computers. As a result, file sizes should be keep smaller, and the number of files sent to the user reduced.

Mobile displays are much smaller and require simplification, and some screens are not as easily visible in sunlight.

Touch screen technology also introduces new interaction routines that are different from the traditional mouse and keyboard. The mobile platform is not as easy to use as a data entry tool, and therefore choice boxes and lists should be used more frequently so that the user can easily scroll and touch-select options, rather than type them in.

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2. Name the six main pieces of the e-commerce site puzzle.

The six main pieces of the e-commerce site puzzle are: the organizational capabilities and human resources you

will need to build and manage the site, the hardware, the software, the telecommunications infrastructure you will need to

meet the demands of your customers, and the site design you will need to implement your business

objectives.

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3. Why is system testing important? Name the three types of testing and their relation to each other.

System testing is important because there can be up to thousands of different pathways within a typical e-commerce Web site and you must make sure that customers can find what they want easily and quickly and, most importantly, that they can complete a purchase without a hitch.

The three types of testing that must be completed are: unit testing, which involves checking each program module; system testing, which includes testing the site as a whole in

the way a typical user might navigate and make requests for functionality;

and acceptance testing, which requires the firms key personnel and managers to use the system to verify that the business objectives as originally conceived are being met.

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4. Compare the costs for system development and system maintenance. Which is more

expensive, and why?

The costs for system maintenance for an e-commerce Web site, can run anywhere from 50 to 100% per year, of the original systems development costs.

For small sites the annual maintenance cost can parallel the development costs, with larger sites achieving some economies of scale.

Maintenance is more expensive because e-commerce sites are always in a process of change, improvement, and correction. E-commerce sites are in fact, never finished. They are always in the process of being built and rebuilt.

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5. What are the three main factors to consider when choosing the best platform for your Web

site?

In choosing the best platform to use for your Web site, the three main factors to consider are:

the anticipated number of simultaneous users who will likely visit your site,

the customer user profile with their expected requests and behaviour while at the site,

and the nature of the content on your site. The more visitors you have, the greater the demand will

be on your system. If the users will be viewing dynamic pages and large multimedia files, far more capacity will be required.

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6. Why is Web server bandwidth an important issue for eCommerce sites?

The three factors discussed in question 6, will help to determine the telecommunications link you will need for your site.

Web server bandwidth is another important consideration because the larger the bandwidth available, the more customers that can hit your site simultaneously. Most ISPs or other site-hosting providers are obligated to provide enough bandwidth so that your site can meet peak demands. By the end of 2008, about 75 million American households had broadband cable or DSL access to the Internet and this will present additional demands for more dynamic content and additional site capacity.

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7. What are the eight most important factors impacting Web site design, and how do they affect a sites operation.

The eight most important factors impacting Web site design are:1. Functionality: The site must have pages that load quickly, perform correctly,

and send the user to the requested information about the product offerings.2. Informational: The site must have links that the customer can find easily in

order to obtain information about the company and the products it offers.3. Ease of use: The site must have a simple foolproof navigation scheme.4. Redundant navigation: The site must have alternative paths to reach the

same content.5. Ease of purchase: There should be no more than one or two clicks required

for the purchasing procedure.6. Multi-browser functionality: The site should work with the popular browsers.7. Simple graphics: The site should not use distracting graphics and/or sounds

that the user cannot control.8. Legible text: The site should avoid the use of backgrounds that distort text or

make it difficult to read. Failure to pay attention to these factors will adversely affect the operation of

a site because users will find the site frustrating to navigate and view, they will have difficulty obtaining information about the products, and they will determine that making a purchase will be far too complicated 4-81

8. What are some of the policies eCommerce businesses must develop before launching a site

and why?

Some of the policies that an e-commerce business site must develop prior to launching are:

a privacy policy, accessibility rules, and financial reporting policies. The privacy policy is a public statement detailing to

customers how the personal information that is gathered at the site will be treated. Accessibility rules are a set of design objectives that ensure disabled users can effectively access a site.

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9. Discuss the differences between a simple logical and simple physical Web site design.

A simple, logical design for a Web site describes the flow of information at the site including the processing functions that must be performed and the databases that will provide information.

It also includes a description of the security and emergency backup procedures and the controls that will be used in the system.

A simple physical design, on the other hand, translates the logical design into the physical components that will be needed such as the servers, software, and size of the telecommunications link, backup servers, and security system.

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10.Why is a Web site so costly to maintain? Discuss the main factors that impact cost?

Web sites are so costly to maintain because code must be debugged, hyperlinks must be tested and repaired continually; emergencies must be handled; reports, data files and links to backend databases must be maintained and updated as necessary. General administrative tasks of the site require attention including updating the products and prices.

Changes and enhancements to the system are also continually being made so that the site is always adapting to changing market conditions.

All of this requires a Web team that includes programmers, designers, and business managers from the marketing, sales support, and production departments.

This will ensure timely response to customer feedback and that the site is adequately monitored for correct prices and links with updated page display.

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11. What are the three main factors to consider when choosing the best platform for your Web site?

anticipated number of simultaneous users who will likely visit your site, the customer user profile with their expected requests and behavior while

at the site, and the nature of the content on your site. The more visitors you have, the greater the demand will be on your system. If the users will be viewing dynamic pages and large multimedia files, far

more capacity will be required.

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04 ecs lect building ecommerce system

Documents

ecommerce system

components of system

system functionalities

ecommerce system tools5

mobile web site

web site solution

building site build

web site performance