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

2. IntroductionsIntroductions  Richard Lucic  Office D 310 LSRC  660-6524  Lucic@cs.duke.edu Lucic@cs.duke.edu  Office Hours: W&F 3:00-5:00p or by appointment

3. CS Lab Staff  Jeff Wright  D136 LSRC  Jwright@cs.duke.edu Jwright@cs.duke.edu

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

5. 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

6. 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

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

8. 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!!!

9. 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)

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

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

12. Course Resources  Books  Texts - Laudon & Travers, Nelson & Nelson  Design - Web Pages That Suck http://www.webpagesthatsuck.com http://www.webpagesthatsuck.com  High Tech Start Up by John L. Nesheim http://www.startupweb.com http://www.startupweb.com  The Death of e and the Birth of the Real New Economy by Fingar and Aronica  Yale Web Style Guide  Class Sites  Course Site http://www.cs.duke.edu/courses/spring03/cps181s http://www.cs.duke.edu/courses/spring03/cps181s  BlackBoard http://courses.duke.edu http://courses.duke.edu

13. Course Resources…..  Other Sites  World Wide Web Consortium http://www.w3.org http://www.w3.org  ACM SIGecom http://www.acm.org/sigecom/exchanges/ http://www.acm.org/sigecom/exchanges/  Rappa/NCSU http://digitalenterprise.org/index.html http://digitalenterprise.org/index.html  Webmonkey http://www.webmonkey.com http://www.webmonkey.com  PCMagazine http://www.pcmag.com/category/0,2999,s%253D1504,00.asp http://www.pcmag.com/category/0,2999,s%253D1504,00.asp  C/net Web Building http://www.builder.com http://www.builder.com  Yale Web Style Guide http://info.med.yale.edu/caim/manual/contents.html http://info.med.yale.edu/caim/manual/contents.html  Creative Good http://www.creativegood.com http://www.creativegood.com  e-Business Best Practices http://www.zdnet.com/enterprise/e-business/bphome/ http://www.zdnet.com/enterprise/e-business/bphome/  Microsoft.Net http://msdn.microsoft.com http://msdn.microsoft.com  IBM e-Business http://www-3.ibm.com/e-business http://www-3.ibm.com/e-business  Java Developer Community http://www.jroundup.com http://www.jroundup.com

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

16. 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?

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

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

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

20. 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.

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

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

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

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

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

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

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

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

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

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

31. 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

32. Benefits of eCommerce

33. 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. 34 U.S. Online Population Forecasts by Researcher Population (Millions) Growth in Number of Internet Users

35. 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

36. Limitations of B2C Growth

37. 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

38. eCommerce I & II Compared

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

40. Assess Websites  Log into BlackBoard http://courses.duke.edu http://courses.duke.edu  Contrast the Effectiveness of  www.barneys.com www.barneys.com  www.honda.com www.honda.com  Email me your analysis lucic@cs.duke.edu

41. 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)

42. 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?