CPS 181s Principles of Effective eCommerce Tuesday & Thursday 3:50 - 5:05p LSRC D 240

IntroductionsIntroductions  Richard Lucic  Office D 310 LSRC    Office Hours: W&F 3:00-5:00p or by appointment

CS Lab Staff  Jeff Wright  D136 LSRC 

IntroductionsIntroductions  Name  Year  Major  What you hope to get out of the course

Course Overview  Curriculum 2000 Research & Writing Requirements  Business Oriented  Student-centric Learning  Writing & Class Discussion Assignments  Case Studies  In-class Labs  Guest Lectures  Team Semester Project

Writing Assignments  Journal Entry (BlackBoard)  Writing Teams  Explore New Ideas  Express Opinions & Thoughts  Conduct Critical Analysis  Express Opinions, Challenge Contradictions  Focus on Ideas and Concepts  500 Words - Bring Hardcopy to Class on Discussion Day

Writing Assignments….  Case Studies  One Original Entry and One Response  Response Rotations  Start New Thread for Original, Responses Follow Previous Author’s Thread

Team Semester Project  Select Team Members  Propose a Market Opportunity  Develop Business Model  Develop Customer Interface Strategy  Mid-Term Progress Report  Design & Implement eCommerce Site and Customer Interface  Propose Implementation Strategy & Success Metrics  Final Project Presentation to “Venture Capital Investors” Plan your semester!!!

Tools Provided  A Dell PII Server for Each Team  Microsoft Windows XP Pro  Microsoft Office  Microsoft Access  Microsoft Visual Studio 6.0  VisNetic Website Server (installed in class)  Dreamweaver MX  Terminal Services (remote terminal access)  Adobe Acrobat Reader  RealPlayer/Flash/Shockwave (players)

Team Servers  Don’t Break It!  Don’t Compromise Your Security!  Make Backups Often!

GradingGrading  20% Class Participation  30% Weekly Writing Assignments & Responses  10% Midterm Team Project Report  40% Semester Team Project

Course Resources  Books  Texts - Laudon & Travers, Nelson & Nelson  Design - Web Pages That Suck  High Tech Start Up by John L. Nesheim  The Death of e and the Birth of the Real New Economy by Fingar and Aronica  Yale Web Style Guide  Class Sites  Course Site  BlackBoard

Course Resources…..  Other Sites  World Wide Web Consortium  ACM SIGecom  Rappa/NCSU  Webmonkey  PCMagazine  C/net Web Building  Yale Web Style Guide  Creative Good  e-Business Best Practices  Microsoft.Net  IBM e-Business  Java Developer Community

eCommerce Framework - Part 1 CPS 181s Jan 9, 2003

QuestionsQuestions  What is eCommerce?  What are the distinct categories of eCommerce?  How is eCommerce different from traditional commerce?  Why study eCommerce?  What is the eCommerce decision-making process?

Strategic Framework  eCommerce Strategy Process  Framing the market  Defining the business model  Customer interface  Market communications  Branding, implementation, and evaluation

Strategic Framework  eCommerce Platforms  Network infrastructure  Convergence of media

What is eCommerce?  Exchanged of digitized information  Technology-enabled transactions  Technology-mediated relationships  Intra- and Inter-organizational activities

DefinitionDefinition  eCommerce can be formally defined as… technology-mediated exchanged between parties (individuals, organizations, or both) as well as the electronically based intra- or inter-organizational activities that facilitate such exchanges.

B-2-BB-2-B  Business-to-Business (B-2-B)  New cooperation, merger, consortiums

B-2-CB-2-C  Business-to-Consumer (B-2-C)  Front office frequently tracked

C-2-CC-2-C  Consumer-to-Consumer (C-2-C)  Between and among  Auction exchanges

C-2-BC-2-B  Consumer-to-Business (C-2-B)  Economically motivated or social advocacy

Four Categories of eCommerce B2B B2C C2B C2CConsumers Business And selling to... Business originating from... Business Consumers

eCommerce / Traditional Commerce  Core strategic decisions are technology-based  Real-time competitive responsiveness  First Mover Advantage  24 X 7

Technology-Based Customer Interface  Screen-to-face interaction  Monitors  ATMs  PDAs  WAP

Technology-Based Customer Interface  Screen-to-face interaction   sales   costs  organizational and technology costs

Customer Interaction  Customer  Time controlled by customer  Seller  Entices, influences, and targets  Uses history and demographics

Customer Behavior  Third-party measurement firms  Extensive tracking capabilities  Real-time financial estimates

Network Economics  Metcalf’s Law  the value of a network to a user is proportional to the number of users squared  Network economics  positive feedback  increased returns

Benefits of eCommerce

Nontraditional Performance Metrics and Emergent Valuation Models  No widely acceptable methods to measure eCommerce business performance  Historic measurements not full measurements  Some new methods are being devised

34 U.S. Online Population Forecasts by Researcher Population (Millions) Growth in Number of Internet Users

The Internet Becomes Pervasive  Host Growing at 45% per Year  Time to Reach 30% of Households  Radio – 38 Years  TV – 17 Years  Internet/Web – 8 Years

Limitations of B2C Growth

eCommerce I & II  eCommerce I  Explosive Growth Starting in 1995  Widespread Use of Web to Advertise Products  Ended in 2000 When dot.com’s Began to collapse  eCommerce II  Began in January 2001  Reassessment of eCommerce by Companies

eCommerce I & II Compared

Select Team Members  3 4-Member Teams  1 3-Member Team

Assess Websites  Log into BlackBoard  Contrast the Effectiveness of    me your analysis

Case Study Discussion Leaders  Jan 14 – Amazon.com  Jan 21 – Planetall.com  Jan 28 – Virtual Vineyards  Feb 4 – Frontgate Catalog  Feb 18 – Monster.com  March 6 – Startup.com  March 18 – Tom.com  April 8 – James Boyle Paper (IP/Copyright Issues)

Amazon.com Case Study 1.Evaluate the Amazon.com website. What aspects of the interface design, features, and functionality represent key strengths and weaknesses? 2.How would you account for Amazon.com’s success in becoming the Web’s most prominent retail site and one of its best known brands? 3.How is information captured on the Amazon.com site? How does Amazon.com use that information to create value for users? 4.What role do virtual communities play in enhancing users’ experiences at Amazon.com? Are virtual communities central or peripheral to the site’s efficiency and effectiveness as an online retailer?