Lecture 7 ref: Chapter 15 Launching a Successful Online Business And EC Projects 1 Copyright © 2010 Pearson Education, Inc.

Learning Objectives 1. Understand the fundamental requirements for initiating an online business. 2. Describe the process of initiating and funding a start-up e-business or large e-project. 3. Understand the process of adding EC initiatives to an existing business. 4. Describe the issues and methods of transforming an organization into an e-business. 5. Describe the process of acquiring Web sites and evaluating building versus hosting options. 6. Understand the importance of providing and managing content and describe how to accomplish this. 15-2

Copyright © 2010 Pearson Education, Inc. Learning Objectives 7. Evaluate Web sites on design criteria, such as appearance, navigation, consistency, and performance. 8. Understand how search engine optimization may help a Web site obtain high placement in search engines. 9. Understand the process of building an online storefront. 10. Know how to build an online storefront with templates. 15-3

Copyright © 2010 Pearson Education, Inc Getting into E-Commerce and Starting a New Online Business CREATING A NEW COMPANY OR ADDING AN ONLINE PROJECT ( 3 steps ) 1. Identify a consumer or business need in the marketplace 2. Investigate the opportunity 3. Determine the business owner’s ability to meet the need 15-4

Copyright © 2010 Pearson Education, Inc. – Some Tips for Success 1. Do your homework 2. Aim for excitement 3. Whittle, shape, iterate, repeat 4. Get real 5. Avoid creating a gizmo Getting into E-Commerce and Starting a New Online Business

Copyright © 2010 Pearson Education, Inc.  PLANNING ONLINE BUSINESSES business plan A written document that identifies a company’s goals and outlines how the company intends to achieve the goals and at what cost business case A document that justifies the investment of internal, organizational resources in a specific application or project Getting into E-Commerce and Starting a New Online Business

Copyright © 2010 Pearson Education, Inc. FUNDING A NEW ONLINE BUSINESS First Round of Initial Funding : Angel Investors and Incubators – angel investor A wealthy individual who contributes personal funds and possibly expertise at the earliest stage of business development – incubator A company, university, or nonprofit organization that supports businesses in their initial stages of development Getting into E-Commerce and Starting a New Online Business

Copyright © 2010 Pearson Education, Inc. Second Round Financing : Venture Capital venture capital (VC) Money invested in a business by an individual, a group of individuals (venture capitalists), or a funding company in exchange for equity in the business Additional Funding : A Large Partner The IPO: An IPO is an initial public offering of stock to the investment community and individual investors at large Getting into E-Commerce and Starting a New Online Business

Copyright © 2010 Pearson Education, Inc. Which EC initiatives are brick-and-mortar organizations most likely to add? A storefront A portal E-procurement Auctions and reverse auctions M-commerce Enterprise social networks and Web 2.0 tools Adding E-Commerce Initiatives or Transforming to an E-Business

Copyright © 2010 Pearson Education, Inc.  TRANSFORMATION TO AN E-BUSINESS What Is Organizational Transformation? Organizational transformation is a comprehensive concept that implies a major organizational change Transformation is not only a major change, but also a sharp break from the past  How an Organization Can Be Transformed into an E- Business? issues involved in transforming to an e-business: legacy systems and processes, resistance from staff, and costs & time to implement new systems and processes Adding E-Commerce Initiatives or Transforming to an E-Business

Copyright © 2010 Pearson Education, Inc. o Business Process Reengineering and business process management are two systems to evaluate and improve business activities to create efficiency and increase organizational effectiveness. – Business Process Reengineering The analysis and design of workflows and processes within an organization Adding E-Commerce Initiatives or Transforming to an E-Business

Copyright © 2010 Pearson Education, Inc. – business process management (BPM) Method for business restructuring that combines workflow systems and redesign methods; covers three process categories: people-to-people systems-to-systems systems-to-people interactions – Software Tools for Facilitating Transformation to E-Business special methodologies, cost, time – Change Management change business process, people work,communication, managing Adding E-Commerce Initiatives or Transforming to an E-Business

Copyright © 2010 Pearson Education, Inc Building or Acquiring a Web Site  CLASSIFICATION OF WEB SITES informational Web site A Web site that does little more than provide information about the business and its products and services interactive Web site A Web site that provides opportunities for the customers and the business to communicate and share information such as, Feedback form, contact address, online surveys

Copyright © 2010 Pearson Education, Inc. attractors Web site features that attract and interact with visitors in the target stakeholder group like games, puzzles, prize giveaways. transactional Web site A Web site that sells products and services collaborative Web site A site that allows business partners to collaborate Building or Acquiring a Web Site

six steps in building a Web site. Copyright © 2010 Pearson Education, Inc

Copyright © 2010 Pearson Education, Inc Web Site Hosting and Obtaining a Domain Name  WEB HOSTING OPTIONS storebuilder service : A hosting service that provides disk space and services to help small and microbusinesses build a Web site quickly and cheaply, such as Yahoo!Yahoo! Storebuilder services are quick and inexpensive, but generally lack customization and strong branding

Web hosting service A dedicated Web site hosting company that offers a wide range of hosting services and functionality to businesses of all sizes  mirror site An exact duplicate of an original Web site that is physically located on a Web server on another continent or in another country Copyright © 2010 Pearson Education, Inc Web Site Hosting and Obtaining a Domain Name

Copyright © 2010 Pearson Education, Inc. ISP Hosting Combined with Web Designer  ISP hosting service A hosting service that provides an independent, stand- alone Web site for small and medium-sized businesses ISP hosted sites can offer customization and strong branding, but may be more expensive and difficult to deploy. self-hosting When a business acquires the hardware, software, staff, and dedicated telecommunications services necessary to set up and manage its own Web site Web Site Hosting and Obtaining a Domain Name

 What criteria should an online business consider in choosing a Web hosting service? Service quality Services offered Price Copyright © 2010 Pearson Education, Inc Web Site Hosting and Obtaining a Domain Name

 REGISTERING A DOMAIN NAME domain name A name-based address that identifies an Internet- connected server. Usually it refers to the portion of the address to the left of.com and.org, etc. Domain Name System (DNS) A hierarchical naming system for computers, services, or any resource participating in the Internet; it is like a directory  How are domain names controlled in order to avoid duplication? Domain names are controlled centrally by ICANN ( Internet Corporation For Assigned Names And Numbers ) to avoid any duplication Web Site Hosting and Obtaining a Domain Name

Copyright © 2010 Pearson Education, Inc Content Creation, Delivery, and Management  content The text, images, sound, and video that make up a Web page  CATEGORIES AND TYPES OF CONTENT dynamic Web content Content that must be kept up-to-date Personalized Content Web content that is prepared to match the needs and expectations of the individual visitor 15-21

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 Primary Content : information about the product  Secondary Content : cross-selling Offering similar or complementary products and services to increase sales up-selling Offering an upgraded version of the product in order to boost sales and profit Promotion coupon and discount that increase sales Comment review, expert advice, further explanation about product Content Creation, Delivery, and Management

Copyright © 2010 Pearson Education, Inc.  CREATION OR ACQUISITION OF CONTENT Buying Content Content can be purchased or licensed Buying from a Syndicator  syndication The sale of the same good (e.g., digital content) to many customers, who then integrate it with other offerings and resell it or give it away free Content Creation, Delivery, and Management

Copyright © 2010 Pearson Education, Inc. personalized content Web content that matches the needs and expectations of the individual visitor Delivering Content by E-Newsletter e-newsletter A collection of short, informative articles sent at regular intervals by to individuals who have an interest in the newsletter’s topic Content Creation, Delivery, and Management

Copyright © 2010 Pearson Education, Inc.  CONTENT MANAGEMENT AND MAINTENANCE content management The process of adding, revising, and removing content from a Web site to keep content fresh, accurate, compelling, and credible Content Testing and Updating Check for accuracy, clarity, misspelling words. Measuring Content Quality Comparing the content to quality standards, must meet copy right requirement and language translation needs Content Creation, Delivery, and Management

Copyright © 2010 Pearson Education, Inc. Content Removal Removing old, out-of-date pages from the web server. Content Management Software Allow non technical staff to create, edit, and delete content on the website Content Creation, Delivery, and Management

Copyright © 2010 Pearson Education, Inc Web Site Design  Guideline for a successful Web site: 1. Build it for users (useful for the user, not necessarily the company) 2. Make it useful (e.g. usability test) 3. Make information easy to find 4. Accommodate all users, including those with disabilities 5. Build a comprehensive, responsive, and effective site 15-28

Copyright © 2010 Pearson Education, Inc. Guideline for a successful Web site: 6. Measure the site against the best of its peer group 7. Build trust; be up front about security, privacy, and marketing policies 8. Assign ownership to users, but work as a team with the technical people 9. Set priorities; do the most beneficial stuff first 10. Watch for new developments and encourage innovation Web Site Design

Copyright © 2010 Pearson Education, Inc.  information architecture How the site and its Web pages are organized, labeled, and navigated to support browsing and searching throughout the Web site Web Site Design

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Copyright © 2010 Pearson Education, Inc.  site navigation Aids that help visitors find the information they need quickly and easily site navigation aids. Navigation bar Navigation column Site map Searchable Web site Web Site Design

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Copyright © 2010 Pearson Education, Inc.  PERFORMANCE (SPEED) Performance affects the amount of time a user may stay on the site. Slow performance can come from many sources including incorrect code and excessive images/media. Download time can be decreased by streamlining the code and media used  COLORS AND GRAPHICS the use of culturally correct colors to match the product, as well as a blend of colors that enhances readability of the site. Graphics should complement the site and be quick- loading Web Site Design

Copyright © 2010 Pearson Education, Inc.  usability (of Web site) is a measure of the ease-of-use of a site by its audience. Factors involved include: Ease of learning Efficiency of use Memorability Error frequency & severity Subjective satisfaction Web Site Design

Copyright © 2010 Pearson Education, Inc Providing E-Commerce Support Services WHO BUILDS THE WEB SITE?  three options for Web site construction. 1. Internal development(Internal stuff) 2. External development(Outside contractor) 3. Partnering PAYMENTS: ACCEPTING CREDIT CARDS An online business that wants to accept credit cards for payment generally has to: 1. Open a merchant account 2. Purchase credit card processing software 3. Integrate the credit card processing software into the transaction system 15-36

Copyright © 2010 Pearson Education, Inc.  WEB SITE PROMOTION Internal Web Site Promotion signature file A simple text message an program automatically adds to outgoing messages Web analytics The measurement, collection, analysis, and reporting of Internet data for the purposes of understanding and optimizing Web usage Providing E-Commerce Support Services

Copyright © 2010 Pearson Education, Inc. search engine optimization (SEO) The application of strategies intended to position a Web site at the top of Web search engine results  CUSTOMER RELATIONSHIP MANAGEMENT Using Content to Build Customer Relationships Providing E-Commerce Support Services

Copyright © 2010 Pearson Education, Inc Opening a Web Storefront OPTIONS FOR ACQUIRING STOREFRONTS 1. Build them from scratch 2. Build them from components 3. Build with templates (storebuilders) 15-39

Copyright © 2010 Pearson Education, Inc Opening a Web Storefront Example: YAHOO! SMALL BUSINESS – Getting Started – Take a Tour and See the Videos – Using the Templates 15-40