BDM3202 Chapter4

E-commerce Presence Overview

  • E-commerce Development: Building an e-commerce presence requires understanding key questions and steps.

Learning Objectives

  1. Questions to Consider: Essential inquiries and steps for developing e-commerce presence.

  2. Building Process: Outline the process to establish an e-commerce site.

  3. Server and Software: Major considerations for choosing web server and e-commerce software.

  4. Hardware Choices: Issues to address when selecting hardware for an e-commerce site.

  5. Performance Tools: Additional tools to enhance website performance.

  6. Mobile Development: Key factors in creating a mobile website and applications.

Case Study: Scratch's Online Presence

  • Objectives: Discuss Scratch's e-commerce goals and optimal conditions for their presence.

  • Adaptation: Analyze how Scratch caters to mobile device user needs.

Planning Your E-commerce Presence

Core Components

  • Vision Elements:

    • Mission statement

    • Target audience

    • Intended market space

    • Strategic analysis

    • Marketing matrix

    • Development timeline

    • Preliminary budget

Financial Considerations

  • Business/Revenue Models: Identify effective business and revenue models.

  • Target Audience Analysis: Assess demographics and consumption patterns.

  • Marketplace Characterization: Size, growth, demographics, and structure analysis.

SWOT Analysis Framework

  • Strengths: Unique approach, easy navigation, growing customer base.

  • Weaknesses: Limited financial resources, lack of prior experience, and media attention.

  • Opportunities: Potential to meet large unmet market needs and develop sites.

  • Threats: Risk of competitors copying approach and rapid tech advancement.

E-commerce Presence Map

Types of Presence

  • Online Presence Platforms:

    • Website, mobile apps, social media engagement through platforms like Facebook and Instagram.

Engagement Activities

  • Customer conversations, sharing, advisories, and offline branding initiatives.

Systematic Approach to Building E-commerce Sites

Management Challenges

  • Understanding business objectives, selecting appropriate technology.

Major Factors

  • Management, architecture, software, design, telecommunications, human resources.

Systems Development Life Cycle (SDLC)

  1. Systems analysis/planning

  2. Systems design

  3. Building the system

  4. Testing

  5. Implementation

System Analysis/Planning

  • Objectives: Define capabilities and required system functionalities for business goals.

Common Business Objectives and Functionalities

  • Objectives: Display goods, provide information, personalize products, execute transactions.

  • Functionalities: Digital catalog, product databases, customer tracking, shopping cart systems.

System Design

Hardware and Software Components

  • Distinguish between logical and physical design specifications.

Building the System: In-house vs. Outsourcing

  • Outsourcing: Hiring external vendors versus building in-house with a skilled team.

  • Hosting: Definitions and differences between hosting, co-location, and outsourcing.

Testing E-commerce Systems

Testing Types

  • Unit testing, system testing, acceptance testing, A/B, and multivariate testing.

Maintenance and Optimization

  • Ongoing system maintenance, costs akin to initial development expenses.

Website Optimization Factors

  • Content delivery, page generation, server response time, efficient resource use.

Web Development Methodologies

  • Overview of prototyping, Agile development, DevOps, and web services.

Website Architectures

Two-Tier vs. Multi-Tier Modeling

  • Two-Tier: Simplistic architecture with a web server and database server.

  • Multi-Tier: Involves layered structure with application servers.

Server Software for E-commerce

Major Platforms

  • Apache and Microsoft’s IIS overview, features, and use cases.

Site Management Tools

  • Basic verification tools, third-party software for analytics and campaign effectiveness.

Dynamic Page Generation Tools

  • Advantages of using DHTML and dynamic content customization.

E-commerce Merchant Software

Basic Functionality

  • Contains catalog listings, shopping cart, and credit card processing functionalities.

Platform Options

  • Solutions available for various business sizes, including Shopify and Adobe Commerce.

Key Selection Factors

  • Consider functionality, scalability, compliance, and global capabilities.

Hardware Considerations

Demand Factors Affecting Performance

  • Number of users, content type, required security, and legacy application interactions.

Scalability Techniques

  • Vertical and horizontal approaches to increase performance.

Optimizing Processing Architecture

  • Separate static vs. dynamic content and optimize database schema.

E-commerce Tools

Design Considerations

  • Effective design principles to enhance customer purchasing experience.

Customer Annoyances on E-commerce Websites

  • List of common website features viewed unfavorably by customers.

Key Factors in Successful E-commerce Design

  • Functionality, ease of navigation, and purchase capabilities.

Interactive and Active Content Tools

Programming Languages

  • Overview of Java, JavaScript frameworks, and other development tools.

Personalization Tools

Impact of Personalization

  • Use of cookies and sophisticated methods for better customer engagement.

Information Policy Set

  • Rules regarding customer privacy and accessibility for users with disabilities.

Mobile E-commerce Development

Types of Platforms

  • Native apps, hybrid apps, and mobile websites discussed.

Design Considerations for Mobile Presence

  • Hardware constraints, mobile-first design, and responsive web design methodologies.

Mobile App Development Tools

  • Overview of Objective C, Java, and various open-source development alternatives.

Cost Considerations for Mobile Presence

  • Cost implications of different mobile development approaches reviewed.

Careers in E-commerce

  • Positions, qualification expectations, and preparatory advice for job seekers.