Teaching Objectives

COMP 6350 eCommerce Systems

Explain the process that should be followed in building an ecommerce system.

Describe the major issues surrounding the decision to
outsource site development and/or hosting.
Identify and understand the major considerations in
choosing Web server and e-commerce merchant server
software.
Explain the issues involved in choosing the most
appropriate hardware for an e-commerce site.
Identify additional tools that can improve Web site
performance.
Explain the important considerations involved in developing
a mobile Web site and building mobile applications.

4. Building eCommerce
system

Alexander Nikov

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Tommy Hilfiger Right-Sizes Its Web Store

Outline

Class Discussion

What are the factors you should take into

account when sizing a Web sites infrastructure?
Why are peak times an important factor to
consider?

1.
2.
3.
4.
5.
6.

Building eCommerce system: A systematic approach

Choosing software for eCommerce system
Choosing hardware for eCommerce system
Other eCommerce system tools
Developing mobile system
Building eCommerce system: A customer-oriented approach

What reasons were behind Hilfigers choice of

ATG for its Web site solution?
How can operators of smaller sites deal with the
right-sizing issue?
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Building an eCommerce system:

A Systematic Approach

1.1. Pieces of the system-Building Puzzle

Main areas where you will need to make
decisions:

Most important management challenges:

Developing a clear understanding of business
objectives

Human resources and organizational capabilities

Creating team with skill set needed to build and manage a
successful system

Knowing how to choose the right technology to

achieve those objectives

Hardware
Software
Telecommunications
system design
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1.2. The Systems Development Life Cycle

Methodology for understanding business
objectives of a system and designing an
appropriate solution
Five major steps:
1. Systems analysis/planning
2. Systems design
3. Building the system
4. Testing
5. Implementation
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Web Site Systems Development Life Cycle

1.3. System Analysis

Business objectives:
List of capabilities you want your system to have

System functionalities:
List of information system capabilities needed to
achieve business objectives

Information requirements:
Information elements that system must produce in
order to achieve business objectives

Figure 4.2, Page 203

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1.4. Systems Design:

Hardware and Software Platforms

System design specification:

Description of main components of a system and

their relationship to one another

Two components of system design:

1. Logical design

Data flow diagrams, processing functions, databases

2. Physical design

Specifies actual physical, software components, models, etc.

Table 4.1, Page 204

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Logical Design for a Simple Web Site

Physical Design for a Simple Web Site

Figure 4.3 (b), Page 206

Figure 4.3 (a), Page 206

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1.5. Build/Host Your Own versus Outsourcing

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Choices in Building and Hosting

Outsourcing: hiring vendors to provide services

involved in building site
Build own vs. outsourcing:
Build your own requires team with diverse skill set; choice of software
tools; both risks and possible benefits

Host own vs. outsourcing

Hosting: hosting company responsible for ensuring site is accessible
24/7, for monthly fee
Co-location: firm purchases or leases Web server (with control over its
operation), but server is located at vendors facility

Figure 4.4, Page 207

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1.6.Testing, Implementation, and Maintenance

Testing
Unit testing
System testing
Acceptance testing

Implementation and maintenance:

Maintenance is ongoing
Maintenance costs: parallel to development costs
Benchmarking

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1.7. Factors in Web Site Optimization

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1.8.Web Site Budgets

From $5,000 to millions of dollars/year
Components of budget:
System maintenance
System development
Content design & development
Hardware
Telecommunications
Software

Figure 4.7, Page 214

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Outline
1. Building eCommerce system: A systematic approach

2. Choosing software for eCommerce system

3.
4.
5.
6.

Choosing hardware for eCommerce system

Other eCommerce system tools
Developing mobile system
Building eCommerce system: A customer-oriented approach

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2.1. Simple versus Multi-tiered Web Site

Architecture

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Two-Tier eCommerce Architecture

System architecture
Arrangement of software, machinery, and tasks in an information
system needed to achieve a specific functionality

Two-tier
Web server and database server

Multi-tier
Web application servers
Backend, legacy databases

Figure 4.9(a), Page 217

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Multi-tier eCommerce Architecture

2.2. Web Server Software

Apache
Leading Web server software (66% of market)
Works only with UNIX, Linux OSs

Microsofts Internet Information Server (IIS)

Second major Web server software (16% of market)
Windows-based

Figure 4.9(b), Page 217

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Site Management Tools

Basic tools
Included in all Web servers
Verify that links on pages are still valid
Identify orphan files

Third-party software and services for advanced

site management
Monitor customer purchases, marketing campaign
effectiveness, etc.
E.g. WebTrends Analytics 10, Google Analytics
Table 4.3, Page 218

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Dynamic Page Generation Tools

2.3. Application Servers

Dynamic page generation:

Web application servers:

Contents of Web page stored as objects in database and fetched

when needed

Common tools: CGI, ASP, JSP, ODBC

Provide specific business functionality required for a

Web site
Type of middleware

Advantages

Isolate business applications from Web servers and

databases

Lowers menu costs

Permits easy online market segmentation

Single-function applications increasingly being

replaced by integrated software tools that combine all
functionality needed for eCommerce site

Enables cost-free price discrimination

Enables Web content management system (WCMS)

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2.4. eCommerce Merchant Server Software

Provides basic functionality for online sales
Online catalog
List of products available on Web site

Shopping cart
Allows shoppers to set aside, review, edit selections, and
then make purchase

Credit card processing

Typically works in conjunction with shopping cart
Verifies card and puts through credit to companys account at
checkout
Table 4.4, Page 222

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2.5. Merchant Server Software Packages

Options for small firms

Integrated environment with most or all of

functionality needed
Key factors in selecting a package

2.6. Building Your Own eCommerce system

Hosted eCommerce sites, e.g., Yahoos Merchant
Solutions

Functionality
Support for different business models
Business process modeling tools
Visual site management and reporting
Performance and scalability
Connectivity to existing business systems
Compliance with standards
Global and multicultural capability
Local sales tax and shipping rules

Site building tools

E-commerce templates
Open-source merchant server software
Enables you to build truly custom site
Requires programmer with expertise, time

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Outline

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Choosing the Hardware for an

eCommerce system

1. Building eCommerce system: A systematic approach

2. Choosing software for eCommerce system

Hardware platform:

3. Choosing hardware for eCommerce system

4. Other eCommerce system tools
5. Developing mobile system
6. Building eCommerce system: A customer-oriented approach

Underlying computing equipment that system uses to

achieve eCommerce functionality

Objective:
Enough platform capacity to meet peak demand
without wasting money

Important to understand the different factors that

affect speed, capacity, and scalability of a site
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3.1. Right-Sizing Your Hardware

Platform: The Demand Side
Demand is the most important factor affecting speed of site
Factors in overall demand:

Number of simultaneous users in peak periods

Nature of customer requests (user profile)
Type of content (dynamic versus static Web pages)
Required security
Number of items in inventory
Number of page requests
Speed of legacy applications

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Degradation in Performance as
Number of Users IncreasesResource Utilization

Table 4.7, Page 227

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Degradation in Performance as
Number of Users IncreasesNumber of Connections

Figure 4.11 (b), Page 229

Figure 4.11 (a), Page 229

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3.2.Right-Sizing Your Hardware Platform:

The Supply Side
Scalability:
Ability of site to increase in size as demand warrants

Ways to scale hardware:

Vertically
Increase processing power of individual components

Horizontally
Employ multiple computers to share workload

Improve processing architecture

Table 4.8, Page 231

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Horizontally Scaling a System

Vertically Scaling a System

Figure 4.14, Page 231

Figure 4.15, Page 232

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Outline
1. Building eCommerce system: A systematic approach
2. Choosing software for eCommerce system
3. Choosing hardware for eCommerce system

4. Other eCommerce system tools

5. Developing mobile system
6. Building eCommerce system: A customer-oriented approach

Table 4.9, Page 233

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4.1.Other eCommerce system Tools

Web site design: Basic business considerations
Enabling customers to find and buy what they need

Tools for Web site optimization

Search engine placement
Metatags, page titles, content
Identify market niches, localize site
Expertise
Links
Search engine ads
Local eCommerce

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Table 4.10, Page 234

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4.3.Tools for Interactivity and

Active Content
Web 2.0 design elements: Widgets, Mashups
CGI (Common Gateway Interface)
ASP (Active Server Pages)
Java, JSP, and Javascript
ActiveX and VBScript
Coldfusion

Table 4.11, Page 235

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4.5.The Information Policy Set

4.4.Personalization Tools
Personalization

Privacy policy

Ability to treat people based on personal qualities and

prior history with site
Customization
Ability to change the product to better fit the needs of
the customer
Cookies

Set of public statements declaring how site will treat

customers personal information that is gathered by
site
Accessibility rules
Set of design objectives that ensure disabled users
can affectively access site

Primary method to achieve personalization

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Outline
1.
2.
3.
4.

Developing a Mobile Web Presence

Three types of mobile e-commerce software
Mobile Web system
Mobile Web app
Native app
Planning and building mobile presence
As with regular Web site, use systems analysis/design to
identify unique and specific business objectives

Building eCommerce system: A systematic approach

Choosing software for eCommerce system
Choosing hardware for eCommerce system
Other eCommerce system tools

5. Developing mobile system

6. Building eCommerce system:
A customer-oriented approach

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Developing a Mobile Web Presence

Design considerations
Platform constraints: Smartphone/tablet
Performance and cost
Mobile Web system:
Least expensive
Mobile app:
Can utilize browser API
Native app:
Most expensive; requires more programming

Table 4.13, Page 246

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Outline
1.
2.
3.
4.
5.

What Does a Web Site Do?

Web site is a virtual storefront
The customers are cyber-customers
Emphasis is on
Need
Efficiency
Good response time
Availability of procedures that expedite a sale

Building eCommerce system: A systematic approach

Choosing software for eCommerce system
Choosing hardware for eCommerce system
Other eCommerce system tools
Developing mobile system

6. Building eCommerce system:

A customer-oriented approach

A Web site is basically a series of pages with links to other

pages or other sites

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Key Components of a Web Site

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Web Site Benefits

Reach millions of customers quickly and reliably

Homepage is the first page of a site that appears when one visits a URL
address

Web page is a carrier of information reached by clicking a button on a

homepage

Link is a connector that makes it possible to go to another Web page on

the site or on the Internet, or go back to the homepage

Reduce the cost of serving customers

Banner is a graphic display on a Web page, usually used for advertising

Reach international markets and customers

Establish a presence in cyberspace

Leverage advertising costs

Promote public relations

Test-market new product or services

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5.1. Site Building Life Cycle

Objectives of a Customized Web Site

Speed up the interactive process
Reduce human intervention to a minimum
Save time
Make buying and selling through the site cost-effective

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Define the Audience and the Competition

Planning Stage

Provide for quick application development and deployment

Determining your audience, their goals and objectives

Define sites goals

Determine who will be involved in defining the goals
Determine if there is time or a need for formal definition

Generate a list of intended audiences

Identify what prospective customers want

Goal is to enhance site visitors experience

Escorting them quickly to the merchandise
Speed and responsiveness are crucial
The seven-second rule

See how well the site matches users needs

Competitive analysis

Decide on the sites mission

Who is the intended audience?

Why will people want to visit the stage?

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Build Site Content

Define the Site Structure

What the site will contain

Content inventory is a list of the company activities (contents) that make

up the Web site

Determine the order of priority of each function or department

The designer needs to determine the feasibility of each function

Content and functional requirements

Site structure is an organized layout of a merchants

departments or functions that becomes the basis for the
Web site
Easy site navigation
Well-laid-out pages and templates
The structure that holds the entire site together

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Architectural Blueprints of Site Contents

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Develop the Visual Design

Find main goal, attracting and retaining visitors

Use a layout grid to show how well the elements fit together

Branding companys logo on each page

Content is the critical part of a page

Establish look and feel of the site via page mock-ups

Personalization
Tracking the users behavior
Cookies are bits of code that sit in a users browser memory and
identify the visitor to the Web site

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Design Languages

5.2.Constructing Your Web Site

Hypertext Markup Language (HTML)

Text-based
Standards

Storefront Building Service

Web-Hosting Service
Web host representative meets with you and explains the aspects of
Web design
The web host begins to collect content from you to build a custom
Web site
Once the website passes the test, the firm begins to write the
keywords and metatags and submits the Web site to leading search
engines, Web directories, and industry sites
A reputable web host also supports maintenance and future
enhancements in a yearly contract or a long term agreement

Do It Yourself

Java is another popular language for designing

Multimedia-enriched content
Macromedia Flash and Shockwave
Extensible Markup Language (XML)
Vector Markup Language (VML)

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5.3.Web Navigation Design

5.4.Design Criteria

Appearance and quality design

Quality assurance (QA) is a process used to check the readiness of a site before it is
loaded on the Web
Style guide is a template designed to measure the materials used to build the Web
site

Using scenarios
Scenario is a situation that helps you view the navigation process
and the site as a point of entry

Public exposure

Viewability and Resolution

What about cultural differences?

Consistency

Design a user-friendly site

Scalability

Security

Design guidelines

Performance

Navigation and interactivity

Creating user profiles

Customer profile is a brief study of the type of person who might visit
your Web site

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DISCUSSION QUESTIONS

Why Web Site Projects Fail?

1. Discuss some of the unique features that must be taken into account when designing a
mobile Web presence.
2. Name the six main pieces of the e-commerce site puzzle.
3. Why is system testing important? Name the three types of testing and their relation to each
other.
4. Compare the costs for system development and system maintenance. Which is more
expensive, and why?
What are the three main factors to consider when choosing the best platform for your Web
site?
5. Why is Web server bandwidth an important issue for eCommerce sites?
6. What are the eight most important factors impacting Web site design, and how do they
affect a sites operation.
7. What are some of the policies eCommerce businesses must develop before launching a site
and why?
8. Discuss the differences between a simple logical and simple physical Web site design.
9. Why is a Web site so costly to maintain?
Discuss the main factors that impact cost?
10. What are the three main factors to consider when choosing the best platform for your Web
site?

Unrealistic deadlines
Incompetent or inadequate staffing
Poor quality design
Changing requirements of the client
Filling Web positions

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2. Name the six main pieces of the ecommerce site puzzle.

1. Discuss some of the unique features that must be

taken into account when designing a mobile Web
presence.

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Designing a mobile Web presence is somewhat different from designing a

Web site that will be accessed via a traditional desktop computer.
For instance, mobile hardware is smaller, and there are more resource
constraints on data storage and processing power.
The mobile platform is also constrained by slower connection speeds than
provided by traditional desktop computers. As a result, file sizes should be
keep smaller, and the number of files sent to the user reduced.
Mobile displays are much smaller and require simplification, and some
screens are not as easily visible in sunlight.
Touch screen technology also introduces new interaction routines that are
different from the traditional mouse and keyboard. The mobile platform is
not as easy to use as a data entry tool, and therefore choice boxes and lists
should be used more frequently so that the user can easily scroll and touchselect options, rather than type them in.

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The six main pieces of the e-commerce site puzzle are:

the organizational capabilities and human resources you
will need to build and manage the site,
the hardware,
the software,
the telecommunications infrastructure you will need to
meet the demands of your customers, and
the site design you will need to implement your business
objectives.

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4. Compare the costs for system development

and system maintenance. Which is more
expensive, and why?

3. Why is system testing important? Name the three

types of testing and their relation to each other.
System testing is important because there can be up to
thousands of different pathways within a typical e-commerce
Web site and you must make sure that customers can find
what they want easily and quickly and, most importantly, that
they can complete a purchase without a hitch.
The three types of testing that must be completed are:
unit testing, which involves checking each program module;
system testing, which includes testing the site as a whole in
the way a typical user might navigate and make requests for
functionality;
and acceptance testing, which requires the firms key
personnel and managers to use the system to verify that the
business objectives as originally conceived are being met.

The costs for system maintenance for an e-commerce

Web site, can run anywhere from 50 to 100% per year,
of the original systems development costs.
For small sites the annual maintenance cost can parallel
the development costs, with larger sites achieving some
economies of scale.
Maintenance is more expensive because e-commerce
sites are always in a process of change, improvement,
and correction. E-commerce sites are in fact, never
finished. They are always in the process of being built
and rebuilt.
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5. What are the three main factors to consider

when choosing the best platform for your Web
site?

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6. Why is Web server bandwidth an important

issue for eCommerce sites?
The three factors discussed in question 6, will help to
determine the telecommunications link you will need for
your site.
Web server bandwidth is another important
consideration because the larger the bandwidth
available, the more customers that can hit your site
simultaneously. Most ISPs or other site-hosting providers
are obligated to provide enough bandwidth so that your
site can meet peak demands. By the end of 2008, about
75 million American households had broadband cable or
DSL access to the Internet and this will present
additional demands for more dynamic content and
additional site capacity.

In choosing the best platform to use for your Web site,

the three main factors to consider are:
the anticipated number of simultaneous users who will
likely visit your site,
the customer user profile with their expected requests
and behaviour while at the site,
and the nature of the content on your site.
The more visitors you have, the greater the demand will
be on your system. If the users will be viewing dynamic
pages and large multimedia files, far more capacity will
be required.
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8. What are some of the policies eCommerce

businesses must develop before launching a site
and why?

7. What are the eight most important factors impacting Web site
design, and how do they affect a sites operation.

The eight most important factors impacting Web site design are:
Functionality: The site must have pages that load quickly, perform correctly,
and send the user to the requested information about the product offerings.
2.
Informational: The site must have links that the customer can find easily in
order to obtain information about the company and the products it offers.
3.
Ease of use: The site must have a simple foolproof navigation scheme.
4.
Redundant navigation: The site must have alternative paths to reach the
same content.
5.
Ease of purchase: There should be no more than one or two clicks required
for the purchasing procedure.
6.
Multi-browser functionality: The site should work with the popular browsers.
7.
Simple graphics: The site should not use distracting graphics and/or sounds
that the user cannot control.
8.
Legible text: The site should avoid the use of backgrounds that distort text or
make it difficult to read.

Failure to pay attention to these factors will adversely affect the operation of
a site because users will find the site frustrating to navigate and view, they
will have difficulty obtaining information about the products, and they will
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determine that making a purchase will be far too complicated
1.

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10.Why is a Web site so costly to maintain?

Discuss the main factors that impact cost?

9. Discuss the differences between a simple logical and

simple physical Web site design.

A simple, logical design for a Web site describes the flow of information at the site
including the processing functions that must be performed and the databases that
will provide information.

It also includes a description of the security and emergency backup procedures and
the controls that will be used in the system.

A simple physical design, on the other hand, translates the logical design into the
physical components that will be needed such as the servers, software, and size of
the telecommunications link, backup servers, and security system.

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Some of the policies that an e-commerce business site

must develop prior to launching are:
a privacy policy,
accessibility rules, and
financial reporting policies.
The privacy policy is a public statement detailing to
customers how the personal information that is gathered at
the site will be treated. Accessibility rules are a set of design
objectives that ensure disabled users can effectively access
a site.

Web sites are so costly to maintain because code must be debugged, hyperlinks
must be tested and repaired continually; emergencies must be handled; reports,
data files and links to backend databases must be maintained and updated as
necessary.
General administrative tasks of the site require attention including updating the
products and prices.
Changes and enhancements to the system are also continually being made so that
the site is always adapting to changing market conditions.
All of this requires a Web team that includes programmers, designers, and
business managers from the marketing, sales support, and production
departments.
This will ensure timely response to customer feedback and that the site is
adequately monitored for correct prices and links with updated page display.

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11. What are the three main factors to consider when

choosing the best platform for your Web site?

anticipated number of simultaneous users who will likely visit your site,
the customer user profile with their expected requests and behavior while
at the site, and
the nature of the content on your site.
The more visitors you have, the greater the demand will be on your system.
If the users will be viewing dynamic pages and large multimedia files, far
more capacity will be required.

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