Chapter 16
Launching a Successful
Online Business and EC Project
Electronic Commerce Prentice Hall? 2006 2
Starting a New Online Business
Creating a New Company or Adding an Online
Project
– Step 1,Identify a consumer or business need in the
marketplace
– Step 2,Investigate the opportunity
– Step 3,Determine the business owner’s ability to
meet the need
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Starting a New Online Business
Online Business Planning
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 is used to justify the investment of
internal,organizational resources in a specific
application or project
Electronic Commerce Prentice Hall? 2006 4
Starting a New Online Business
Initial Funding of a New Online Business
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
Electronic Commerce Prentice Hall? 2006 5
Starting a New Online Business
Secondary Funding a New Online Business
venture capital (VC)
Money invested in a business by an individual
or a group of individuals (venture capitalists) in
exchange for equity in the business
– Additional Funding,A Large Partner
– The IPO
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Adding EC Initiatives and
Transforming to an E-Business
Adding EC Initiatives to an Existing Business
– A storefront
– A portal
– E-procurement
– Auctions and reverse auctions
– Other initiatives
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Adding EC Initiatives and
Transforming to an E-Business
Transformation to an E-Business
– What is organizational transformation?
– How an organization can be transformed into an
e-business
– Software tools for facilitating transformation to
e-business
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Exhibit 16.1 Roadmap to Becoming an
E-Business
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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
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Building or Acquiring a Web Site
Classification of Web Sites
attractors
Web site features that attract and interact with visitors
in the target stakeholder group
transactional Web site
A Web site that sells products and services
collaborative Web site
A site that allows business partners to collaborate
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Building or Acquiring a Web Site
Building a Web Site
– Step 1—Select a Web host
– Step 2—Register a domain name
– Step 3—Create and manage content
– Step 4—Design the Web site
– Step 5—Construct the Web site and test
– Step 6—Market and promote the Web site
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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 micro businesses build a
Web site quickly and cheaply
ISP hosting service
A hosting service that provides an independent,
stand-alone Web site for small and medium-sized
businesses
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Web Site Hosting and
Obtaining a Domain Name
A Pure Hosting Service
Web hosting service
A dedicated Web site hosting company that
offers a wide range of hosting services and
functionality to businesses of all sizes
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Web Site Hosting and
Obtaining a Domain Name
A Pure Hosting Service
mirror site
An exact duplicate of an original Web site that is
physically located on a Web server on another
continent
co-location
A Web server owned and maintained by the business
is placed in the hands of a Web hosting service that
manages the server’s connection to the Internet
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Web Site Hosting and
Obtaining a Domain Name
Web Hosting Options
self-hosting
When a business acquires the hardware,
software,staff,and dedicated
telecommunications services necessary to set
up and manage its own Web site
Electronic Commerce Prentice Hall? 2006 16
Web Site Hosting and
Obtaining a Domain Name
Registering a Domain Name
domain name
A name-based address that identifies an Internet-
connected server
domain name registrar
A business that assists prospective Web site owners
with finding and registering the domain name of their
choice
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Content Creation,
Delivery,and Management
content
The text,images,sound,and video that make
up a Web page
dynamic Web content
Content that is updated infrequently
commodity content
Information that is widely available and
generally free to access on the Web
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Exhibit 16.3 Digital Content Delivery
Life Cycle
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Content Creation,
Delivery,and Management
Content Creation and Acquisition
cross-selling
Offering similar or related products and services to
increase sales
up-selling
Offering an upgraded version of the product in order
to boost sales and profit
– Promotion (e.g.,coupon,rebate,discount)
– Comment (e.g.,reviews,testimonials expert advice)
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Content Creation,
Delivery,and Management
– Creating Content:
Content is usually created by the site’s owners and
developers
– Buying Content:
Content that is acquired from outside sources
should be supplemental content,not primary
content
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Content Creation,
Delivery,and Management
– 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
RSS (“Rich Site Summary,”,RDF site
summary,” or,Really Simple Syndication”)
An XML format for syndicating Web content
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Exhibit 16.4 The Syndication Supply Chain
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Content Creation,
Delivery,and Management
Content Creation and Acquisition
– Content Providers and Networks
premium content
Content not available elsewhere on the Web
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Content Creation,
Delivery,and Management
Content Creation and Acquisition
– Representative Content-Related Vendors
Content Delivery Networks
personalized content
Web content that is prepared to match the needs and
expectations of the individual visitor
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Content Creation,
Delivery,and Management
Content Creation and Acquisition
– Delivering Content by E-Newsletter
e-newsletter
A collection of short,informative articles sent at
regular intervals by e-mail to individuals who have
an interest in the newsletter’s topic
– Writing Effective Content
Delivering effective content involves not only what is said,
but how it is said
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Content Creation,
Delivery,and Management
content management
The process of adding,revising,and removing
content from a Web site to keep content fresh,
accurate,compelling,and credible
– Content Testing
– Measuring Content Quality
– Pitfalls of Content Management
– Content Removal
– Content Management Software
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Content Creation,
Delivery,and Management
Catalog Content and Its Management
– For buyers who aggregate suppliers’ catalogs on their
own Web sites,content management begins with
engaging suppliers and then collecting,standardizing,
classifying,hosting,and continually updating their
catalog data
Translation of Content to Other Languages
– The primary problems with language customization
are cost and speed
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Content Creation,
Delivery,and Management
Content Maximization and Streaming Services
– Many companies provide media-rich content,such as
video clips,music,or Flash media,in an effort to
reach their target audience with an appealing
marketing message
– These and other content providers are concerned
about the download time from the user’s perspective
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Web Site Design
information architecture
How the site and its Web pages are organized,
labeled,and navigated to support browsing and
searching throughout the Web site
deep linking
Entry into a Web site via the site’s interior pages,
not the homepage,typically through search
engines or external links
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Exhibit 16.6 A Simple Hierarchical
Web Site Structure
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Web Site Design
site navigation
Aids that help visitors find the information they
need quickly and easily
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Web Site Design
Site Map and Navigation
frame
An HTML element that divides the browser window
into two or more separate windows
Exhibit 16.7 A Generic Navigation Bar
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Web Site Design
Consistency
look and feel
The elements,including layout,typeface,colors,
graphics,and navigation aids,that visually
distinguish a site from any other
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Exhibit 16.8 A Web Page Layout Grid
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Web Site Design
Performance
– Speed ranks at or near the top of every list of
essential design considerations,for good reason
– Visitors who have to wait more than a few seconds for
a Web page to load are likely to hit the ―stop‖ or
―back‖ button and go somewhere else
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Web Site Design
Colors and Graphics
– The key to effective use of color and graphics is to
design the site to match the expectations of the target
audience
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Web Site Design
Quality Assurance
– Quality assurance is about making sure the Web site
design is properly tested before it is launched and
ensuring that it continues to perform up to
expectations after launch
– A lesson most Web designers can learn from total
quality management (TQM) principles is to design the
site for easy maintenance
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Providing EC Support Services
Who Builds the Web Site?
– Do It Yourself
internal Web site development
The process of building and/or maintaining the
Web site with company staff
– Outsource
external Web site development
When the business hires another firm to build
and/or maintain the Web site
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Providing EC Support Services
– Hybrid
partnering Web site development
When a mixture of internal and external
development is used to build and/or maintain a
Web site
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Providing EC Support Services
Web site construction
The initial content creation,design,
programming,and installation phases of a Web
site’s development
Web site maintenance
The on-going process of keeping the Web site open
for business,managing content,fixing problems,and
making incremental additions to the site
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Providing EC Support Services
Managing Web Site Construction
– Start with a plan
– Set goals early and stick to them
– Use a fixed-price contract
– Justify graphics and features
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Providing EC Support Services
Payments,Accepting Credit Cards
card-not-present (CNP) transaction
A credit card transaction in which the merchant
does not verify the customer’s signature
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Providing EC Support Services
Web Site Promotion
– Internal Web Site Promotion
signature file
A simple text message an e-mail program
automatically adds to outgoing messages
search engine optimization (SEO)
The application of strategies intended to position a
Web site at the top of Web search engines
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Providing EC Support Services
Customer Relationship Management
– Listening to Customers
e-mail discussion list
A group of people who share a common interest and who
communicate with each other via e-mail messages
managed by e-mail list software
electronic discussion (e-forum)
A portion of the Web site where visitors can post
questions,comments,and answers
chat group
A portion of the Web site where visitors can communicate
synchronously
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Opening a Web Storefront
Options for Acquiring Storefronts
– Build them from scratch
– Build them from components
– Build with templates
– Use someone else’s storefront
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Opening a Web Storefront
Options for Acquiring Storefronts
– Selecting a Development Option
Customers
Merchandising
Sales service
Promotion
Transaction processing
Marketing data and analysis
Branding
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Summary
1,Fundamental requirements for initiating an online
business.
2,Funding options for a start-up online business.
3,Adding e-initiatives.
4,Transformation to e-business.
5,Web site hosting options for an online business.
6,Web site construction options for an online business.
7,Provide content that attracts and keeps Web site visitors.
8,Design a visitor-friendly site.
9,High placement in search engines is key.