Lecture 5 (Chapter 9, G. Schneider) Web Hosting and E ...

Lecture 5 (Chapter 9, G. Schneider) Web Hosting and E ...

Lecture 7 (Chapter 9, G. Schneider) Web Hosting and E-Business Software Md Mahbubul Alam, PhD Professor Learning Objectives Find and evaluate web-hosting services Basic and advanced functions of electronic commerce software How the size of a business affects its choice of electronic commerce software Electronic commerce software for small, midsize and large businesses 03/01/2020 2

2 Hosting Shared hosting Client's Web site is on a server that hosts other Web sites simultaneously Operated by the service provider at its location Dedicated hosting Client Web server not shared with other clients Service provider owns server hardware, leases hardware to client Maintains Web server hardware, software and provides Internet connection Co-location service Service provider rents physical space to client Provides reliable power supply, Internet connection Clients install server hardware and software; maintain server 03/01/2020

3 Hosting Arrangement Decision Electronic commerce software needs determined by: Expected enterprise size Projected traffic and sales Budget Consider online store creation costs versus brick and mortar costs Consider external or in-house host costs 03/01/2020 4 Basic Functions of Electronic Commerce Software (contd) All electronic commerce solutions must provide Catalog display

Shopping cart capabilities Transaction processing 03/01/2020 5 Catalog Display Catalog organizes goods and services being sold Organizes offerings into departments Web store advantage Single product may appear in multiple categories Catalog: listing of goods and services Static catalog o Simple list written in HTML that appears on a Web page or a series of Web pages o To change or add or delete item, one must edit the HTML of one or more pages Dynamic catalog: o Stores the information about items in a database,

o Allow multiple photos of each item, detailed descriptions and a search tool for customers 03/01/2020 6 Catalog Display (contd) Large, well-known electronic commerce sites Include many features; professional looking Use dynamic catalog aides and tools Small online stores (sell fewer than 100 items) Require simple products or categories list Item organization not important Can provide item photos with links Use a static catalog Good sites provide alternative ways to find products Search engine

Never Stand in the way of a customer who wants to buy something. 03/01/2020 7 Shopping Cart Electronic commerce early days Used forms-based shopping Shoppers selected items by filling out online forms Awkward if ordering more than one or two items Problems Need to write down product codes, unit prices, other information before ordering Customers forgot whether submit button clicked

Confusing and error prone 03/01/2020 8 Shopping Cart (contd) Electronic shopping carts Now the standard method for processing sales Keep track of items customer selected May view cart contents, add items, remove items Ordering requires a simple click Item details stored automatically in cart Button click executes the purchase transaction Screen asks for billing and shipping information 03/01/2020

9 Shopping Cart (contd) Web: stateless system Unable to remember anything from one transmission or session to another How does shopping cart retrieve information later? Use cookies Allows information to be stored explicitly Allows unique user identification If browser does not allow cookie storage Electronic commerce software automatically assigns temporary number e.g., ShopSite 03/01/2020 10

Transaction Processing Transaction processing occurs when shopper proceeds to virtual checkout counter by clicking a checkout button Electronic commerce software performs necessary calculations, e.g., discounts, tax, shipping costs. Fig. Basic electronic commerce Web site architectur Web browser software and sellers Web server software switch into 03/01/2020

11 Transaction Processing (contd) Most companies use accounting software package Records sales and inventory movements Requires integration with accounting software that runs on other computers Web sites use software to update tax rates FedEx and UPS shipping rate software integrates with e-commerce software Other calculations Coupons, special promotions, time-sensitive offers e.g., purchase a round-trip ticket before the end of the month and receive a 50 percent discount Large companies Integration may be complex

03/01/2020 12 Advanced Functions of Electronic Commerce Software 1. 2. 3. 4. 5. Databases Middleware Enterprise Application Integration Integration with ERP Systems Web Services 03/01/2020

13 Databases Database Collection of information Stored on a computer in a highly structured way Business rules How the company does business Database manager (database management software), is a software that Makes it easy for users to: o Enter, edit, update, retrieve information in the database Examples: Microsoft Access, IBM DB2, Microsoft SQL Server, Oracle 03/01/2020 14

Middleware Middleware is a software takes sales and inventory shipments information from electronic commerce software and transmits to accounting and inventory management software Companies can write own middleware or purchase customized middleware Interoperability Making information systems work together (e.g., integrate electronic commerce software with accounting and inventory management databases or applications) o Middleware cost range: $50,000 to several million dollars o Major middleware vendors: BEA Systems, Broadvision, Digital River, IBM Tivoli Systems, Informatica 03/01/2020 15 Enterprise Application Integration

Application program (application software, application) o A program that performs specific function o e.g., creating invoices, calculating payroll, processing payments Application server, a computer that o Takes request messages received by the Web server o Runs application program that performs action based on request messages contents Actions determined by business logic o Business logic o Rules used in the business

03/01/2020 16 Enterprise Application Integration (contd) Application integration (enterprise application integration) o Creation of links among scattered applications o Interconnects organizations business logic Accomplished by programs transferring information o From one application to another Transferring information from order entry systems in several different divisions to a single accounts receivable Sales system that integrates all enterprise-wide sales activity Various program data formats differ Must edit and reformat data before transferring it Increasingly using XML data feeds to move data from one application to another 03/01/2020

17 Enterprise Application Integration (contd) Types of application servers: Page-based and component-based systems Page-based application systems Component-based application system o Return pages generated by scripts o Separates presentation logic from business logic containing rules o Present data on Web page with the o Preferred by larger businesses o Logic component created and business logic maintained separately o Hard to revise once the system reach a higher level of complexity o Updating, changing system elements much easier Examples for small, midsized Web Common Web component-based

sites systems o Adobe ColdFusion o Enterprise JavaBeans (EJBs) o JavaServer Pages (JSP) o Microsoft Component Object Model o Microsoft Active Server Pages (ASP) 03/01/2020 18 (COM) o Hypertext Preprocessor (PHP) Integration with ERP Systems Enterprise resource planning (ERP) software packages Business systems integrating all facets of a business Accounting, logistics, manufacturing, marketing,

planning, project management, treasury functions Two major ERP vendors: Oracle and SAP ERP software installation costs Between $2 million and $25 million 03/01/2020 19 Web Services: What? Internet is used to connect specific software applications at one organization directly to software applications at other organizations Software systems supporting interoperable machine-to-machine interaction over a network Set of software and technologies allowing computers to use the Web to interact with each other directly without humans directing the specific interactions Application program interface (API): programs interconnect with each other

Web Service Specifications: SOAP (Simple Object Access Protocol) REST and RESTful (Representational State Transfer ) 03/01/2020 20 Electronic Commerce Software for Small and Midsize Companies 1. Basic Commerce Service Providers (CSPs) free or low-cost e-commerce software Cost: less than $20 per month Software built into CSPs site Selling few items (no more than 50) Incurring relatively low transaction volumes (fewer than 20 transactions per day)

e.g., ValueWeb, ProHosting.com, 1&1 Internet, Yahoo! 03/01/2020 21 Electronic Commerce Software for Small and Midsize Companies (contd) 2. Mall-style Commerce Service Providers o Online store design tools and storefront templates o Easy-to-use interface o Web page-generation capabilities o Page maintenance o Shopping cart software capabilities o Payment processing services o Data mining capabilities o e.g., eBay (cost less than $20 per month), Amazon.com (transaction fee plus percentage of the selling price)

03/01/2020 22 Electronic Commerce Software for Midsize to Large Businesses Web Site Development Tools After Web site creation programmers can add purchased software elements, such as shopping cart and content management software Create the middleware More expensive than using a CSP $2000 to $50,000 Three midrange electronic commerce systems Intershop Enfinity WebSphere Commerce Suite by IBM Commerce Server by Microsoft 03/01/2020

23 Electronic Commerce Software for Large Businesses Enterprise-class software Commerce software for large-scale systems Requirements Several dedicated computers, Web server system, firewalls Enterprise Describes system serving multiple locations of one company Encompasses all areas of the business or enterprise

Enterprise-class product examples IBM WebSphere Commerce Enterprise, Oracle E-Business Suite, Broadvision products Software provides tools for B2B and B2C commerce Interacts with wide variety of Provides tools for linking to existing systems and supporting supply, Database, accounting, ERP purchasing activities Costs: $100,000 to $10 million 03/01/2020 24

Enterprise-Class Electronic Commerce Software (contd) Provides standard electronic commerce activities o Secure transaction processing and fulfillment o Interaction with firms inventory system o Making proper stock adjustment o Issuing purchase orders for needed supplies o Generating other accounting entries 03/01/2020 25

Customer Relationship Management Software (CRM) Goal CRM business importance Understand each customers Maintaining customer loyalty specific needs Maintaining positive, consistent Customize product or service to contacts at the purchasing company meet those needs If customer needs met exactly they will pay more for goods or services Oracle Siebel CRM Applications Leading CRM software provider SAP CRM: another vendor CRM software Costs: $25,000 to millions of dollars

Obtains data from operations Newer CRM: buyer does not have to software install CRM software on its own Gathers data about customer servers activities Example: Salesforce.com Uses data to conduct analytical activities 03/01/2020 26 Supply Chain Management Software (SCM) Helps companies coordinate planning and operations with

industry partners Two general function types: planning and execution SCM planning software Develops coordinated demand forecasts Uses information from each supply chain participant SCM execution software Helps with warehouse and transportation management 03/01/2020 Two major firms offering SCM software i2 Technologies and JDA Software i2 Technologies product: RHYTHM

o Manages demand planning, supply planning, demand fulfillment JDA Software o Originally managed retail order entry and sales side of inventory control 27 Content Management Software Help firms to control large amounts of text, graphics, media files Why important? Increased use of smart phones, netbook computers, pad computing devices, social media Companies needing many different ways to access corporate information IBM and Oracle

o Provide software as components in other enterprise software packages o Software costs o Between $100,000 and $500,000 o 3 to 4 times higher costs in case of customized software 03/01/2020 28 Knowledge Management Software Systems managing knowledge itself Rather than documentary representations of that knowledge Four main tasks Collect and organize information Share information among users Enhance ability of users to collaborate Preserve knowledge gained through information use Major software vendors: IBM, Microsoft SharePoint, BMC Software, CustomerVision Costs: $10,000 to $1 million or more

03/01/2020 29 Cloud Computing New force in the software industry Allows companies to gain the benefits of software without having to install computing hardware and maintain it. Users do not need to upgrade or reconfigure their servers Vendor maintains the entire software installation at its sites. Software users pays a subscription fee (few hundred dollars per user per year) Popular cost-reduction strategy Company can gain flexibility in launching new operations 03/01/2020 30 Questi

on Please ? Acknowledgement: E-business by Gary Schneider 03/01/2020 Prepared & Presented by Md. Mahbubul Alam, PhD 31

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