Lecture E-commerce and e-business for managers - Chapter 3: Building an e-business: Design, development and management
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Chapter 3, Building an eBusiness: Design,
Development and Management
Outline
3.1
Introduction
3.2
Getting Started
3.2.1 Generating Business Ideas
3.2.2 Growth of eBusiness: Evaluating Risk
3.2.3
Finding Funding and Going Public
3.3
Putting Your Plan Into Action
3.3.1
Choosing a Domain Name
3.3.2
SupplyChain Management: Vendors, Distributors
and Shipment Providers
3.3.3
WebSite Hosting
3.3.4
Web Design
3.3.5
Enhancing the User Experience
3.3.6
Protecting Your eBusiness
3.3.7
Streaming Media: How Much Is Too Much?
3.3.8
Preparing for New Technologies
2001 Prentice Hall, Inc. All rights reserved.
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Chapter 3, Building an eBusiness: Design,
Development and Management
Outline
3.4
eBusiness Solutions
3.4.1
EndToEnd eBusiness Solutions
3.4.2
Other eBusiness Solutions
3.4.3
Maintaining and Monitoring Your Web Site
3.4.4
eCommerce Consulting
2001 Prentice Hall, Inc. All rights reserved.
3.1 Introduction
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• Turnkey solution
– A prepackaged ebusiness
• Ebusiness templates
– Outline the basic structure, but allow the design to be
determined by the owner
• Project outsourcing
– Available to businesses with substantial funding, alleviates
the need for businesses to complete projects inhouse
• Frontend system
– Portion of an ebusiness that is visible to consumers
• Backend system
– Database management, payment processing and logistics
2001 Prentice Hall, Inc. All rights reserved.
3.2 Getting Started
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• Building, Managing and Maintaining
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Advertising
Marketing
Customer relationship management
Content management
Accepting online payments
Recognizing cultural differences and legal parameters
Providing security features
2001 Prentice Hall, Inc. All rights reserved.
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3.2.1 Generating Business Ideas
• Products and services
– Discover what exists
– Decide how to improve it
• Develop a business plan
– Enables you to envision your ebusiness on paper for
evaluation purposes
– Serves as a presentation of your business’ objectives and
longterm expectations
2001 Prentice Hall, Inc. All rights reserved.
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3.2.1 Business Plan Layout
• Business plan layout
– Introduce your readers to the layout, what you will discuss
and when you will discuss it
– Provide an overview of the business premise including the
primary issues
– Headings and subheadings should categorize the content
– Focus on what makes the ebusiness unique
• Business plan services and software
– www.synrgistic.com/busplan/busplan.htm
– Mindspring Biz
– www.adarus.com/html/demos.html
2001 Prentice Hall, Inc. All rights reserved.
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3.2.1 Business Plan Layout
• Primary Purpose
– Define the purposes of your business
– What do you intend to sell
– What services will you provide
• Strategy
– Describe how your product or service fits in the market
– How is it different from existing products and services
– How will it be profitable
• Business model
– What model will you implement
– How will you conduct transactions
2001 Prentice Hall, Inc. All rights reserved.
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3.2.1 Business Plan Layout
• Support
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Provide evidence that supports the idea of your business
How will you justify these as support to the idea
Have you conducted research
Who are your customers
Who is on your management team and what are their
credentials
– How will you generate revenue
– What are your expenses
• Process
– List the steps necessary to build your ebusiness
– Does more research need to be conducted
– Inform investors of how money will be allocated
2001 Prentice Hall, Inc. All rights reserved.
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3.2.2 Growth of eBusiness:
Evaluating Risk
• Many Internet companies have experienced rapid
growth
• Many others have struggled to get off the ground,
find funding and make a profit
• Technological advancements usually lead to
growth in industry
• The Internet has produced new industries and
altered and enhanced existing industries
• Ebusinesses that target a specific market first
must be aware of the changing technologies and
their costs
2001 Prentice Hall, Inc. All rights reserved.
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3.2.3 Finding Funding and Going
Public
• Building an ebusiness can be expensive and risky
• Competition is intense
• Determining a market niche and reaching a target
audience often require significant financial
backing
• Internet incubator
– A company that specializes in the development of Internet
businesses
– Often will serve as the financiers, as well as work with the
development team
– Often receive a stake in the developing ebusiness
2001 Prentice Hall, Inc. All rights reserved.
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3.2.3 Finding Funding and Going
Public
• Internet incubators
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Camp Six
eCorporation
Idealab
eHatchery
• Venture capitalists
– Individuals or groups that generate the financial support of a
growing enterprise, usually in exchange for ownership in the
company
• Angel investors
– Wealthy investors with business experience
• Many ebusinesses look to make an Initial Public Offering
(IPO)
– Money generated from public investors can be used to grow the
company and establish it at the forefront of its market
2001 Prentice Hall, Inc. All rights reserved.
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3.2.3 Finding Funding and Going
Public
Rare Medium’s Incubation Methodology. (Courtesy of Rare Medium.)
2001 Prentice Hall, Inc. All rights reserved.
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3.3 Putting Your Plan Into Action
• After generating ideas, building a business plan
and finding funding, prepare to:
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Manage distribution
Manage shipping
Enhance the user experience through Web design
Prepare for new technologies
Purchase supporting hardware and software
Accept online payment
Market your Web site
Manage your consumers
2001 Prentice Hall, Inc. All rights reserved.
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3.3.1 Choosing a Domain Name
• Domain name
– The name used in the URL for a Web site
– Choose a concise name that people will be able to recognize
and type easily
– Consider how a domain name will be interpreted in many
different languages and cultures
• Fully qualified host name
– The host name, the domain name and the toplevel domain
(TLD)
– Most Web servers use www as the host name
– A domain name is often the name of the company that owns
a site or a word or phrase that otherwise describes the site
– The TLD usually describes the type of organization that
owns the domain name (.com, .org, .gov)
2001 Prentice Hall, Inc. All rights reserved.
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3.3.1 Choosing a Domain Name
• Available domain names with the dotcom (.com)
extension are becoming rare
• ICANN is considering the possibility of
introducing new suffixes, such as .movie, .inc,
.info and .web
• Registering a domain name
– Network Solutions, Register.com, Domainit.com
• Cost to register a domain name depends on
extension
• Usually, ownership of a domain name requires a
onetime registration fee followed by recurring
annual fees
2001 Prentice Hall, Inc. All rights reserved.
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3.3.2 SupplyChain Management
• Fulfillment
– Warehouse storage, shipping, inventory management and
return procedures
• Manufacturer
– The direct producer of the product
• Distributor
– The supplier who acts as a middleman to manufacturers and
vendors, often reducing the price of an item by buying in
bulk
• Allows businesses with Webenabled supply
chains to accept madetoorder requests (Dell)
2001 Prentice Hall, Inc. All rights reserved.
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3.3.2 SupplyChain Management
• Increased efficiency
– Web merchant can serve customers better by knowing the
status of each order
– Webbased fulfillment mechanisms will demonstrate if the
product is available, if it has left the warehouse or if it has
been delivered and who signed for it
– Wireless Internet access allows fulfillment status to be
checked from any location at any time
• Supplychain management services and software
– ChangePoint, GoCargo.com, Evolve, Atlas Commerce,
SubmitOrder.com
2001 Prentice Hall, Inc. All rights reserved.
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3.3.2 SupplyChain Management
GoCargo.com shipping bid. (Courtesy of GoCargo.com)
2001 Prentice Hall, Inc. All rights reserved.
3.3.3 WebSite Hosting
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• Web host
– Provides products, services and support for companies,
organizations and individuals to help them create and
maintain Web sites
– Offers customers space on a Web server where they can
build a Web site
• Dedicated server
– Assigned one specific purpose, ensuring that the function
that the server was intended to manage is not interrupted by
other responsibilities, offering consistent download times
• Colocation
– Includes a dedicated Internet connection and protection from
power outages, fire and other disasters
2001 Prentice Hall, Inc. All rights reserved.
3.3.3 WebSite Hosting
• Webhosting services
– Loudcloud
– Hostopia
– DedicatedHosting.com
– HostPro
– Global Crossing
– Exodus
– Digital Island
– Digex
– ValueWeb
2001 Prentice Hall, Inc. All rights reserved.
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3.3.3 WebSite Hosting
• Turnkey solutions
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Freemerchant
Yahoo! Store
BigStep.com
Tripod.com
Commerce One
Virtual Spin
AbleCommerce’s AuctionBuilder
Bidland.com
WebSiteForFree.com
Homestead
2001 Prentice Hall, Inc. All rights reserved.
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3.3.4 Web Design
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• Web site should be easy to navigate
• Content should be the foundation of the site and
updated regularly
• Design consistency
– Uniformity among the sections and pages
• Examples of welldesigned sites:
– Cooking.com
– Apple
– Crayola
– Amazon.com
– eBay
2001 Prentice Hall, Inc. All rights reserved.
3.3.4 Web Design
•
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•
•
•
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Strong branding
Easily located contact information
Consistent appearance of logos and color scheme
Easily located products and prices
Lowswitching costs
– The costs of changing vendors
2001 Prentice Hall, Inc. All rights reserved.
3.3.4 Web Design
WebSiteForFREE.com’s site design. (Courtesy of
WebSiteForFREE.com)
2001 Prentice Hall, Inc. All rights reserved.
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3.3.4 Web Design
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Homestead site tour. (Courtesy of Homestead.com © Incorporated. All
Rights Reserved.)
2001 Prentice Hall, Inc. All rights reserved.
