entrepreneurship & commerce in it - 10 - the internet today and how to build an e-commerce...

Entrepreneurship & Commerce in IT

10

Sachintha Gunasena MBCShttp://lk.linkedin.com/in/sachinthadtg

Recap so far…

Last Week’s Discussion

• The Internet and World Wide Web• Evolution of the Internet• Key Technology Concepts of the Internet

• Internet Protocols• Email• FTP• Telnet• Ping• Tracert

Today…

Today’s Discussion

• The Internet Today• Building an E-Commerce Website

The Internet Today

The Internet Backbone

• principal data routes between large, strategically interconnected networks and core routers on the Internet

• a very high-speed data transmission line that provides networking facilities to relatively small but high-speed Internet Service Providers all around the world.

• require high-speed bandwidth connections and high-performance servers/routers.

• Backbone networks are primarily owned by commercial, educational, government and military entities because they provide a consistent way for Internet service providers (ISPs) to keep and maintain online information in a secure manner.

The Internet Backbone Cont.d

Internet

Home

ISP

NAP/IXP(Network Access Point/ Internet

eXchange Point)

Business

PC1 PC2 PC3PC

POP(Point of Presence)

RouterModem/ Router

Backbone

T1 LinePhone / DSL

/ Cable Modem

T3 Line

The Internet Backbone Cont.d

• Internet• a global system of interconnected computer networks that use the Internet protocol suite

(TCP/IP) to link several billion devices worldwide• NAP

• a public network exchange facility where Internet service providers (ISPs) connected with one another in peering arrangements (old)

• IXP - Internet eXchange Point• a physical infrastructure through which ISPs and CDNs exchange Internet traffic between

their networks (new)• ISP

• an organization that provides services for accessing, using, or participating in the Internet

• POP - Point of Presence• an access point to the Internet

The Internet Backbone Cont.d

• first packet-switched computer network was the ARPANET. • It used a backbone of routers called Interface Message Processors• National Science Foundation created NSFNET in 1986 by funding six

networking sites using 56kbit/s interconnecting links and peering to the ARPANET

• In 1987, this new network was upgraded to 1.5Mbit/s T1 links for thirteen sites.

• IBM, MCI and Merit upgraded the backbone to 45Mbit/s bandwidth (T3) in 1991

• combination of the ARPANET and NSFNET became known as the Internet.

• dominance of the NSFNet backbone became dominant • redundant ARPANET infrastructure was decommissioned in 1990.

The Internet Backbone Cont.d

• The Internet backbone is a conglomeration of multiple, redundant networks owned by numerous companies. It is typically a fiber optic trunk line.

• The trunk line consists of many fiber optic cables bundled together to increase the capacity.

• The backbone is able to reroute traffic in case of a failure.• The data speeds of backbone lines have changed with the times.• In 1998, all of the United States backbone networks had utilized the slowest data rate

of 45 Mbit/s. • However the changing technologies allowed for 41 percent of backbones to have

data rates of 2,488 Mbit/s or faster by the mid 2000s.• Fiber-optic cables are the medium of choice for Internet backbone providers for many

reasons. • Fiber-optics allow for fast data speeds and large bandwidth; they suffer relatively

little attenuation, allowing them to cover long distances with few repeaters; they are also immune to crosstalk and other forms of electromagnetic interference which plague electrical transmission.

Building an E-Commerce Website

Website Design Lifecycle

• Planning• System Analysis• System Design• Building the System• Testing• Implementation

Planning• Planning an e-commerce web site is

essential for business.• the complexities of running an online

business can be the reason for not planning a site

• a website is a business’s window to the world

• can be the difference between having a successful online presence or not.

things to remember• The e-commerce website is not for you, it must meet the

expectations and needs of your customers/clients.• An e-commerce website is

• a flexible, • extensible

• communications instrument that reflects, • positively • or negatively,

• on the business.

E-Commerce Website Design

Objectives

Primary Objective• To establish and promote your businesses credibility.• To increase exposure.• To describe your products or services.• To offer online transactions, purchasing (e-commerce) or

information on how to buy products and services.• To provide customer service and/or support.• To communicate business identity or branding.• To decrease print and sending costs.• To compete with competitors.

Secondary Objectives• To make your e-commerce website search engine

friendly.• To generate repeat visitors and/or custom.• To encourage visitors to recommend the website to

others.• To create an online community.• To offer a newsletter or members section.• To encourage visitors to stay and visit parts of the

site.

Website Design

Design Guidelines• Target Audience• Website Design : Look & Feel• Logo & Branding• Content• Web Pages• Search Engine Optimisation & Promotion• Site Technical Details• Project Timeline• Unanswered Questions

Target Audience• Who is your target audience?• What is your target audience looking for?• Will people find you by search engines or will you

provide them with your domain name via printed material and/or emails and/or social networks?

• What questions are your customers and/or clients always asking you?

• What can you offer your customers and/or clients that would save them time?

Site Design: Look & Feel• Look at other websites to gather ideas of what you would like on your

website.• Which features and layout styles do you like best and feel that your

business will benefit?• Do you need to decide on a colour scheme or overall theme?• What kind of image do you want your website to portray for your business?• Navigation and Menus – Single, Multiple, Dropdowns?• Graphics and Photographs -   Do you have electronic or favoured choices or

are you looking to find royalty free stock or custom photos?• Are you interested in animation graphics or videos for the website?• Do you need to take photos of you, your staff, your services, or your

products?• Do you have any vendor supplied photos or graphics you are authorized to

use?

Logo & Branding• Do you have a logo for your business?

• Do you have a high resolution digital copy of it?• Do you need a logo or would a stylized text of your

business name be sufficient?• Do you need to design and develop a brand image and

logo for your business?• If yes, how would you describe your business in one

sentence?• Do you have an idea for the logo in mind

Content• Do you have existing written material which can be used? • If not, put together the content required or have a good indication to what you require so that

you may either • request copywriting services • use the content management facility to insert the content

• Do you have information in electronic format which can be used? For example,• Brochures• Presentations• Flyers• Case studies• Testimonials• Business timeline history• Previous or current website (if any)

Web Pages• Home• Our Services• Our Products• About Us• Why Choose Us• Testimonials• Frequently Asked Questions (also known as FAQ’s)• Discussion Forum• Documents / Downloads• Our Blog• Members Area• Links or resources• Make a booking• Contact us• Other (specific to your business)

Search Engine Optimisation & Promotion

• How will people find you: by name, keywords, products, services, etc.

• Resource linking:  if you don’t offer it, who does? Would you like to link to them?

• Keyword orientated content and web page names• Ensure you research your keywords and/or request keyword

research to ensure the best use of keywords in accordance to your specific industry and competitor analysis.

• Monitor your websites ranking in the various major search engines frequently and modify your website as often as possible based on your discoveries.

Site Technical Details• Have you registered a domain name?

• If not, what are the options that work for you?• Hosting Plans:  do you already have adequate hosting?

• If not, what are the options that work for you?• Do you have your control panel access information for

domains and hosting if already acquired?• Do you have the expertise to carry out maintenance on your

website should your website face any technical difficulty?• If not, what are the options that work for you?

Project Timeline• What is your deadline for the website?

• Beginning when • finishing when?

• Is your launch date tied to a product or service that you are introducing?

• Is your business dependant on seasonal, social or financial timeframes?

Unanswered Questions

• If you are left with questions after going through the checklist, have you made a note of them so that you can discuss them with an expert?

• If not, you should do so as it may prove vital in obtaining a website designed and developed with the right content & features for your target audience.

System Analysis

Systems Analysis• Business Objectives

• list of capabilities that should be in the site• System Functionalities

• list of information system capabilities needed to achieve business objectives

• Information Requirements• information elements that the system should

produce in order to achieve business objectives

BUSINESS OBJECTIVES, SYSTEM FUNCTIONALITY, AND INFORMATION

REQUIREMENTS FOR A TYPICAL E-COMMERCE SITE

Business Objective System Functionality Information Requirements

Display products Digital catalog Dynamic text & graphic catalog

Provide product information Product database product description, stocking numbers, inventory levels,

Personalize/customize product Customer on-site tracking

Site log for every customer visit; data mining capability to

identify common customer paths and appropriate

responses

Execute a transaction Shopping cart/payment system Secure credit card clearing; multiple payment options

Accumulate customer information Customer database

Name, address, phone, and e-mail for all customers; online

customer registration

BUSINESS OBJECTIVES, SYSTEM FUNCTIONALITY, AND INFORMATION

REQUIREMENTS FOR A TYPICAL E-COMMERCE SITE

Business Objective System Functionality Information Requirements

Provide after-sale customer support Sales database Customer ID, product, date,

payment, shipment date

Coordinate marketing/advertising program

Ad server, e-mail server, e-mail campaign manager, ad banner

manager

Site behavior log of prospects and customers linked to e-mail

and banner ad campaigns

Understand marketing effectiveness

Site tracking and reporting system

Number of unique visitors, pages visited, products purchased, identified by

marketing campaign

Provide production and supplier links Inventory management system

Product and inventory levels, supplier ID and contact, order

quantity data by product

System Design

Hardware & Software Platforms

• System design specification• describe the main components of the system and their relationship to

one another• System Design Components

• Logical Design• dataflow diagrams• processing functions• databases

• Physical Design• specifies actual physical, software components, models, etc.

Logical DesignSite

CustomerVerify Login

Ship Products

Purchase Products

Display Catalog Pages

Customer DB

Catalog DB

Order DB

HTTP Request Customer Information

Accept/Reject Visitor

Fullfil Order

Order Shipped

Confirmation

Physical Design

Customer’s Device

E-Commerce Suite

WebsiteHostingInternet

Ad Server

SQL DB

Shopping Cart

Online Catalog

Mail Server

Web ServerHDD

Bandwidth

T1 highspeedinternet

connection

cabledslt1

Building the System

In-house vs. Outsourcing

• requires team with diverse skill set; • choice of software tools; • both risks • and possible benefits

Hosting the System

In-house 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 vendor’s facility

System Testing• Unit testing

• individual units of source code, sets of one or more computer program modules together with associated control data, usage procedures, and operating procedures, are tested to determine whether they are fit for use

• System testing• testing conducted on a complete, integrated system to

evaluate the system's compliance with its specified requirements

• Acceptance testing• determine if the requirements of a specification or contract

are met

Implementation and Maintenance

• Maintenance is ongoing• Maintenance costs: parallel to development

costs• Benchmarking

• the process of comparing one's business processes and performance metrics to industry bests or best practices from other companies

Website Optimization Factors

• Page Generation• server response time• device based accelerators• efficient resource allocation• resource utilisation thresholds• monitoring site performance

Website Optimization Factors

• Page Delivery• content delivery networks• edge caching• bandwidth

Website Optimization Factors

• Page Content• optimize HTML• optimize images• site structure• efficient page style

Choosing Server Software

• 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

Two-Tier

webserveruser

dynamic database

Multi-TierWeb Server Layer

Backend Layer

Middle-tier Layer

Web Servers

E-Commerce ServersApplication ServersDatabase Servers

Ad ServersMail Servers

Corporate ApplicationsFinance

Production MRPEnterprise Systems

HR Systems

incoming internet requests

Choosing Server Software

• Apache• Leading Web server software• Works with UNIX, Linux operating

systems• Microsoft’sInternetInformationServer(IIS)

• Second major Web server software• Windows-based

Functionality of Web Servers

Functionality DescriptionProcessing HTTP requests Receive and respond to client requests for

HTML pages

Security Services (SSL)Verify username & password; process certificates and private/public key information for credit card

processing

FTP Transfer very large files from server to server

Search Engine Indexing of site content; keyword search capability

Data Capture Log file of all visits, time, duration, referral source

E-Mail send, receive, store emails

Site Management Tools statistics, check links, etc

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. Google Analytics

Dynamic Page Generation Tools

• Dynamic page generation• contents of web pages are stored as objects in the database and fetched when

needed• Common Tools

• CGI, ASP, JSP, ODBC, JDBC• Advantages

• lowers menu costs (cost of changing prices)• permits easy online market segmenting• enable cost-free discrimination

• identical or largely similar goods or services are transacted at different prices by the same provider in different markets

• enables content management systems (CMS)

Application Servers• Web Application Servers• Provide specific business functionality required for

a Web site• Type of middleware

• Isolate business applications from Web servers and databases

• Single-function applications increasingly being replaced by integrated software tools that combine all functionality needed for eCommerce site

Application Servers Functionality

Application Server Functionality

Catalog display provides a db for product descriptions and prices

Transaction Processing ( Shopping Cart) accepts orders and clears payments

List Servercreates and serves email lists,

manages online marketing campaigns

Proxy Server monitor and control access to main web server, firewall

Mail Server manages internet email

Audio/Video Server stores and delivers media content

Chat Servercreates an environment for online text and audio interactions with

customers

Application Servers Functionality Cont.d

Application Server Functionality

News Server provides connectivity and displays internet news feeds

Fax Server fax reception and sending via web server

Groupware Server create workgroup environments for online collaboration

Database Server store customer, product, price information

Ad Servermaintains web-enabled DB of advertising banners that permits customised targeted ads based on consumer

behaviour

Auction Server provides transaction environment for online auctions

B2B Serverimplements buy, sell and link marketplaces for commercial

transactions

E-Commerce Merchant Server Software

Functionality• 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 company’s account at

checkout

Merchant Server Software Packages

• Integrated environment with most or all of functionality needed• Key factors in selecting a package

• 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

Choosing the Right Hardware for Your E-

Commerce Site• Hardware Platform• underlying computing equipment that 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

Right-Sizing Your Hardware Platform

• Customer Demand• most important factor affecting speed

• Factors in overall demand• number of simultaneous users in peak periods• nature of customer requests (user profile)• type of content (dynamic vs. static web pages)• required security• number of items in inventory• number of page requests• speed of legacy applications

Right-Sizing Your Hardware Platform Cont.d• Scalability

• ability of the site to increase in size as needed• Ways to scale hardware

• Vertically• increase processing power of individual components

• Horizontally• employ multiple computers to share workload

• Improve Processing architecture

Right-Sizing Your Hardware Platform Cont.d

• Will share some notes later.

Other E-Commerce Site Development Tools

• Website Design: Basic business considerations• enabling customers search and buy what they need

• Tools for website optimisation• Search Engine Placement

• meta tags, page titles, content• identify market niches, localise site• expertise• links• search engine ads (SEM)• local e-commerce

Personalization Tools• Personalisation

• ability to treat people based on personal preferences and prior history with site

• Customisation• ability to change product to better fit to an

individual customers needs• Cookies

• primary method to achieve personalization

Case Studies

System Analysis: Case Study 1• Requirement:

• E-Commerce site to enable members to buy and sell Portals/Domains

• A robust but user-friendly site was what the customer desired.

• Analysis:• A site of this concept would attract advanced and frequent

visitors. • User’s sole intentions to benefit from the deals are to be

assured by securing the site well. • This should however not be a very restrictive site

considering the growth potential.

System Analysis: Case Study 1 Cont.d

• Design:• Restrict Buy/Sell activities to members only.• Take a Legally binding agreement signed by members who want to put up ads

as well as Buy• Extensive usage of Client-side scripting to guide users at all point.• Database incorporating best of RDBMS concepts with Referential integrity

among various tables.• Enable Session state and identify user at all stages and give a definite time to

make page unavailable after that time.• Use Site-Map to allow target browsing, by advanced users.• Check the Domain names with an Admin and allow listing.• Usage of E-Mail components to inform user of developments.

System Analysis: Case Study 2

• Requirement: • Develop an Educational web site which will cater to the needs of

students in the age group of 6 –17.• To make user-friendly interfaces and implement sturdy system to

with stand errors by ignorant users.• Solution: key areas to focus.

• Understanding existing system of teaching and possible modification.

• Content Designing and allow Automatic Updating• Selection of Web Technology and Application Development.• Cost benefit analysis, for site owner and users as well

System Analysis: Case Study 2 Cont.d

• Design:• Develop and deploy database of MS SQL Server.• Proper management of table spaces, Segments, Buffers and security

options.• Develop Administration tool using ASP technology for uploading and

manipulating content in site.• Studying & developing site module wise like registration, Content

Management, Questions module, Admin and Tutor module• Develop Credit card processing system.• Modularity with the help of ActiveX Custom Component for data retrievals.• Allow Index searching system• A sturdy chat-server system to enhance interactivity among students and

teachers.

Next Up…

• Security and Encryption

References• https://en.wikipedia.org/wiki/Internet_backbone• http://www.entrepreneur.com/article/225961• https://www.geotrust.com/resources/guides/creating-ecommer

ce-website.pdf• http://e-commercewebsitedesign.me.uk/planning-an-e-commer

ce-website/• http://gantecusa.com/case9.htm• http://www.prenhall.com/behindthebook/0132240858/pdf/Kend

all_Feature1_Why_We_Wrote_This_Book.pdf• http://www.rhicsstudios.com/e-commerce-development-report.

pdf

Thank you.

Sachintha Gunasena MBCShttp://lk.linkedin.com/in/sachinthadtg