Colin Drury Cost Accounting

E-commerce 2014
business. technology. society.

tenth edition
Kenneth C. Laudon
Carol Guercio Traver
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 4
Building an E-commerce Presence: Web
Sites, Mobile Sites, and Apps
Organize by QasimR-System Aynalist

Imagine Your E-commerce Presence
 What’s the idea?
 Vision | Future
 Mission statement | Now
 Target audience
 Intended market space
 Strategic analysis
 Internet marketing matrix
 Internet Marketing is also known as i-marketing, web marketing, online-marketing,
Search Engine Marketing (SEM) or e-Marketing.
 Development timeline and preliminary budget
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 4-3
Imagine Your E-commerce Presence (cont.)
 Where’s the money?
 Business model(s):
 Portal, e-tailer, content provider, transaction broker,
market creator, service provider, community
provider
 Revenue model(s):
 Advertising, subscriptions, transaction fees, sales,
and affiliate revenue
 Who and where is the target audience?
 Describing your audience
 Demographics
 Age, gender, income, location
 Behavior patterns (lifestyle)
 who buys, where, what, when and how
 Consumption patterns (purchasing habits)
 To truly understand trends in consumption patterns, one must first understand the
basic principles of economics. (To know, what customers want to buy, and why.)
 Digital usage patterns (mobile, smartphone – email, text, fb, twitter)
 Consumer media usage affects the way in which businesses need to adjust
their digital strategies. (Higher income users have access to more devices )
 Content creation patterns (blogs, Facebook)
 Buyer personas (user experience)
 Buyer personas are examples of the real buyers who influence or make decisions
about the products, services or solutions you market.
Intended market space
 Characterize the marketplace
 Demographics
 Size, growth, changes
 Structure
 Competitors
 Suppliers
 Substitute products
 Where is the content coming from?

 Static or dynamic?
 Know yourself—SWOT analysis ( See Fig.1)
 Develop an e-commerce presence map ( See Fig.2)
 Develop a timeline: Milestones (See Fig.3)
 How much will this cost?
 Simple Web sites: up to $5000
 Small Web start-up: $25,000 to $50,000
 Large corporate site: $100,000+ to millions
SWOT Analysis Strategic Analysis
Fig.1
E-commerce Presence Map Internet Marketing Matrix
Figure 4.2, page 190
Develop a timeline: Milestones
Microsoft Project Management 2013
Building an E-commerce Site:
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
Pieces of the Site-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 site
 Hardware/software
 Telecommunications
 Site design
The Systems Development Life Cycle
= IS
- IS (Information System) may deploy in any business organization

INFORMATION SYSTEM (IS)
 an arrangement of people, data, processes, and information technology
that interact to collect, process, store, and provide as output the
information needed to support an organization.
INFORMATION TECHNOLOGY(IT)
 Describes the combination of computer technology (hardware and
software) with telecommunications technology (data, image, and voice
networks).
The Systems Development Life Cycle
 Methodology for understanding business objectives of a
system and designing an appropriate solution
 Systems Development Lifecycle refers to a methodology for
developing systems (such as an e-commerce website).
The Seven major steps involved in the systems development life cycle for an
e-commerce site are:
 Initialization/planning
 Systems analysis
 Systems design
 Building the system
 Testing
 Implementation
 Maintenance
SDLC – Model Choice
Water Fall Model V-Model

OTHER MODELS
• Incremental model
• RAD model
• Agile model
• Iterative model
• Spiral model
Initial Investigation/Planning
 For starters, how do you find the system requirements,
 how do you calculate the cost?”
 finding the requirements of a system (ecommerce website)
it whole process on it own.
 You must go trough the company’s document’s and see how
it operates, talk to the employees on different things they;
 you might do that by using questioners or conducting
interviews.
 Then talk to the customers and everyone involved in the day
to day activity of the company.
 After you have gathered all the required information you
start analyzing it.
System Analysis
 The systems analysis step of the SDLC tries to answer the
question, “What do we want the e-commerce site to do for
our business?”
 To answer this, identify the specific business objectives for your site, and then
develop a list of system functionalities and information requirements.
 Business objectives:
 List of capabilities you want your site 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
After analysis it where you will come with a system that is suitable
for the company. You will know the type of equipment's they
need and software’s, then come up with an cost of putting the
system in place.
Systems Design:
Hardware and Software Platforms
 System design specification:
 In the system design step, you plan on how the system
functionality and requirements will be achieved.
 Description of main components of a system and their
relationship to one another
 Two components of system design:
 Logical design
 Data flow diagrams, processing functions, databases
 Physical design Specifies actual physical, software components,
models, and so on
Logical Design for a Simple Web Site
Figure 4.6 (a), Page 197
Logical Design for a Simple Website
Physical Design for a Simple Web Site
physical design - where the best hardware and software
components are selected to fulfill the plan.
Build/Host Your Own vs. Outsourcing
 Building Site from scratch or use Packages (as cms)
 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 vendor’s facility
Building The System
 In this phase the designs are translated
into code.
 In building the system, you perform the
programming of the system and gather
and implement any data needed.
Different high level programming
languages like C, JSP,PHP,ASP, Java are
used for coding.
Choices in Building and Hosting
Figure 4.7 Page 198
System Testing
 Once a site is built, and before it is released for general use, it
must be tested thoroughly. Testing is required whether the
system is outsourced or built in-house.
 Testing Technique’s and Acceptance
 Unit testing | Single Module/Component Testing
 http://demos.telerik.com/kendo-ui/websushi/?php
 System testing | As a whole System Testing
 Acceptance testing | Approval – System meet the required requirements.
(for example: -company's key managers — IT, Sales, Personnel,
Marketing, Finance, Production, etc. — verify that the system works to
their requirements).
System Implementation
 The final step, implementation

(Deploying the Hardware / Software (Result
of SDLC previous phases)), begins the systems
operational life. During implementation,

the system will need to be monitored,
checked, tested, and repaired on an
ongoing basis.
 It initialized the Maintenance Process
System Maintenance
 Later comes 'benchmarking', when the web team

compare the system's design, ease of use, speed of
response, etc. to those of competitors and the
industry generally.
 Software(Website) will definitely undergo change
once it is delivered to the customer .
Note:- This is not compulsory there is only seven step
in a SDLC but above are generic it varies from 3 to 26
according to organization structure or needs.
E-Commerce [Overview]
Online
shop
Mobile
Searching
App
Newsletter Marketing
Web
E-Mail
design
website
SEO Security
Blogging Forum
Revenue
Interface
Model
News Feed Strategy

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E-commerce 2014

business. technology. society.

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Organize by QasimR-System Aynalist

 Development timeline and preliminary budget

 Where is the content coming from?

Figure 4.2, page 190

Microsoft Project Management 2013

- IS (Information System) may deploy in any business organization

Water Fall Model V-Model

Figure 4.6 (a), Page 197

 Build | own vs. outsourcing:

 Host | own vs. outsourcing

Figure 4.7 Page 198

 The final step, implementation

operational life. During implementation,

 Later comes 'benchmarking', when the web team

News Feed Strategy

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