Turnkey solution
A pre-packaged e-business
E-business templates
Outline the basic structure, but allow the design to be determined by the owner
Project outsourcing
Available to businesses with substantial funding, alleviates the need for businesses to complete projects in-house
Front-end system
Portion of an e-business that is visible to consumers
Back-end system
Database management, payment processing and logistics
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Chapter 3, Building an e-Business: Design, Development and ManagementOutline3.1 Introduction3.2 Getting Started 3.2.1 Generating Business Ideas 3.2.2 Growth of e-Business: Evaluating Risk 3.2.3 Finding Funding and Going Public3.3 Putting Your Plan Into Action 3.3.1 Choosing a Domain Name 3.3.2 Supply-Chain Management: Vendors, Distributors and Shipment Providers 3.3.3 Web-Site Hosting 3.3.4 Web Design 3.3.5 Enhancing the User Experience 3.3.6 Protecting Your e-Business 3.3.7 Streaming Media: How Much Is Too Much? 3.3.8 Preparing for New Technologies1Outline3.4 e-Business Solutions 3.4.1 End-To-End e-Business Solutions 3.4.2 Other e-Business Solutions 3.4.3 Maintaining and Monitoring Your Web Site 3.4.4 e-Commerce ConsultingChapter 3, Building an e-Business: Design, Development and Management23.1 IntroductionTurnkey solutionA pre-packaged e-businessE-business templatesOutline the basic structure, but allow the design to be determined by the owner Project outsourcingAvailable to businesses with substantial funding, alleviates the need for businesses to complete projects in-houseFront-end systemPortion of an e-business that is visible to consumersBack-end systemDatabase management, payment processing and logistics 33.2 Getting StartedBuilding, Managing and MaintainingAdvertisingMarketingCustomer relationship managementContent managementAccepting online paymentsRecognizing cultural differences and legal parametersProviding security features43.2.1 Generating Business IdeasProducts and servicesDiscover what existsDecide how to improve itDevelop a business planEnables you to envision your e-business on paper for evaluation purposes Serves as a presentation of your business’ objectives and long-term expectations 53.2.1 Business Plan LayoutBusiness plan layoutIntroduce your readers to the layout, what you will discuss and when you will discuss it Provide an overview of the business premise including the primary issues Headings and sub-headings should categorize the contentFocus on what makes the e-business uniqueBusiness plan services and softwarewww.synrgistic.com/busplan/busplan.htmMindspring Biz www.adarus.com/html/demos.html 63.2.1 Business Plan LayoutPrimary PurposeDefine the purposes of your business What do you intend to sellWhat services will you provideStrategyDescribe how your product or service fits in the marketHow is it different from existing products and servicesHow will it be profitableBusiness modelWhat model will you implementHow will you conduct transactions73.2.1 Business Plan LayoutSupportProvide evidence that supports the idea of your businessHow will you justify these as support to the ideaHave you conducted researchWho are your customersWho is on your management team and what are their credentialsHow will you generate revenueWhat are your expensesProcessList the steps necessary to build your e-businessDoes more research need to be conductedInform investors of how money will be allocated83.2.2 Growth of e-Business: Evaluating RiskMany Internet companies have experienced rapid growth Many others have struggled to get off the ground, find funding and make a profitTechnological advancements usually lead to growth in industry The Internet has produced new industries and altered and enhanced existing industriesE-businesses that target a specific market first must be aware of the changing technologies and their costs93.2.3 Finding Funding and Going PublicBuilding an e-business can be expensive and riskyCompetition is intense Determining a market niche and reaching a target audience often require significant financial backingInternet incubatorA company that specializes in the development of Internet businessesOften will serve as the financiers, as well as work with the development teamOften receive a stake in the developing e-business 103.2.3 Finding Funding and Going PublicInternet incubatorsCamp SixeCorporationIdealabeHatcheryVenture capitalistsIndividuals or groups that generate the financial support of a growing enterprise, usually in exchange for ownership in the company Angel investorsWealthy investors with business experienceMany e-businesses look to make an Initial Public Offering (IPO)Money generated from public investors can be used to grow the company and establish it at the forefront of its market 113.2.3 Finding Funding and Going PublicRare Medium’s Incubation Methodology. (Courtesy of Rare Medium.)123.3 Putting Your Plan Into ActionAfter generating ideas, building a business plan and finding funding, prepare to:Manage distributionManage shippingEnhance the user experience through Web designPrepare for new technologies Purchase supporting hardware and softwareAccept online paymentMarket your Web site Manage your consumers133.3.1 Choosing a Domain NameDomain nameThe name used in the URL for a Web siteChoose a concise name that people will be able to recognize and type easily Consider how a domain name will be interpreted in many different languages and cultures Fully qualified host nameThe host name, the domain name and the top-level domain (TLD)Most Web servers use www as the host nameA domain name is often the name of the company that owns a site or a word or phrase that otherwise describes the siteThe TLD usually describes the type of organization that owns the domain name (.com, .org, .gov)143.3.1 Choosing a Domain NameAvailable domain names with the dot-com (.com) extension are becoming rare ICANN is considering the possibility of introducing new suffixes, such as .movie, .inc, .info and .web Registering a domain nameNetwork Solutions, Register.com, Domainit.comCost to register a domain name depends on extension Usually, ownership of a domain name requires a one-time registration fee followed by recurring annual fees 153.3.2 Supply-Chain ManagementFulfillmentWarehouse storage, shipping, inventory management and return proceduresManufacturer The direct producer of the product DistributorThe supplier who acts as a middleman to manufacturers and vendors, often reducing the price of an item by buying in bulkAllows businesses with Web-enabled supply chains to accept made-to-order requests (Dell)163.3.2 Supply-Chain ManagementIncreased efficiency Web merchant can serve customers better by knowing the status of each order Web-based fulfillment mechanisms will demonstrate if the product is available, if it has left the warehouse or if it has been delivered and who signed for itWireless Internet access allows fulfillment status to be checked from any location at any timeSupply-chain management services and softwareChangePoint, GoCargo.com, Evolve, Atlas Commerce, SubmitOrder.com173.3.2 Supply-Chain ManagementGoCargo.com shipping bid. (Courtesy of GoCargo.com)183.3.3 Web-Site HostingWeb hostProvides products, services and support for companies, organizations and individuals to help them create and maintain Web sites Offers customers space on a Web server where they can build a Web site Dedicated serverAssigned one specific purpose, ensuring that the function that the server was intended to manage is not interrupted by other responsibilities, offering consistent download times ColocationIncludes a dedicated Internet connection and protection from power outages, fire and other disasters 193.3.3 Web-Site HostingWeb-hosting servicesLoudcloudHostopiaDedicatedHosting.comHostProGlobal CrossingExodusDigital IslandDigexValueWeb203.3.3 Web-Site HostingTurnkey solutionsFreemerchantYahoo! StoreBigStep.comTripod.comCommerce OneVirtual SpinAbleCommerce’s AuctionBuilderBidland.comWebSiteForFree.comHomestead213.3.4 Web DesignWeb site should be easy to navigateContent should be the foundation of the site and updated regularlyDesign consistencyUniformity among the sections and pagesExamples of well-designed sites:Cooking.comAppleCrayolaAmazon.comeBay223.3.4 Web DesignStrong brandingEasily located contact informationConsistent appearance of logos and color schemeEasily located products and pricesLow-switching costs The costs of changing vendors233.3.4 Web DesignWebSiteForFREE.com’s site design. (Courtesy of WebSiteForFREE.com)243.3.4 Web DesignHomestead site tour. (Courtesy of Homestead.com © Incorporated. AllRights Reserved.)253.3.5 Enhancing the User ExperienceAdding a search engineFreefindIntelligent agentsSoftware programs that communicate with end users and recognize the users’ preferences (Amazon.com)Enhancing visual experienceZOOM Server software ImagePumpCommunity-building toolsMyEvents.comFrequently Asked Questions (FAQs)263.3.5 Enhancing the User ExperienceImagePump Zoom Technology. (Courtesy of Xippix, Inc.)273.3.5 Enhancing the User ExperienceEnhanced view with the Magnifier. (Courtesy of Xippix, Inc.)283.3.5 Enhancing the User ExperienceMyEvents.com calendar feature. (Courtesy of MyEvents.)293.3.5 Enhancing the User ExperienceMyEvents.com contacts feature. (Courtesy of My Events.)303.3.6 Protecting Your e-BusinessTimely shipping and effective personalizationProtection from mistakes and misunderstandingsEgghead.comPrivacy policySecure AssureDisclaimers should be easy to locate and information should be presented in a clear and concise manner Offer protection against:Small spelling or editing errors Inaccurate statistics or product pricesDated information and inaccurate links 313.3.6 Protecting Your e-BusinessSecure Assure’s example of a Privacy Profile™ (Courtesy of Secure Assure, LLC.)323.3.7 Streaming MediaWhile multimedia such as streaming video and audio can enhance content, not all users have the capabilities to download this kind of information Provide consumers with simpler Web pages Test your Web site’s effectiveness by running trial downloads of your site through a standard dial-up connection prior to launch 333.3.8 Preparing for New TechnologiesKeep up with new technologyPlan for new technologies during initial building stagesCell phonePager Personal Digital Assistant (PDA)Employ new technologies to make your e-business accessible to mobile devices 343.4 e-Business SolutionsEnable good managers and business owners to build, manage and maintain an e-businessWeb-site building servicese-Consulting Marketing 353.4.1 End-to-End e-Business SolutionsEnd-to-end solution providerOffers services to build Web sites from conception to implementation Design, development and deployment services Payment capabilitiesWeb-site monitoring servicesBack-end adaptationFulfillmentData management363.4.1 End-to-End e-Business SolutionsEnd-to-end solution providersWebvisionMicrosoft’s bCentralROIDirect’s EcommerceDell E WorksGenuityInterlandAppnetSapientScientViantProxicomInforte373.4.2 Other e-Business SolutionsExist for e-business development, operation and management Solution providersOpenair.comIntacctBAport AccountingNetledger BizTone Financials Allaire Spectra Mediasurface InfoOffice ITKnowledge.comSM383.4.3 Maintaining and Monitoring Your Web Site Balanced ScorecardA method used to measure the success of a business by its performance in customer satisfaction, integration capabilities and potential for growth An e-business must also consider its use of current technologies for management and production purposes Monitoring software and servicesMercury Interactive, ebSure, Inc., Akamai, iSharp.com, Holistix, Keynote.com, Site Rock, Red Alert393.4.3 Maintaining and Monitoring Your Web SiteHolistix’s Web Manager. (Courtesy of Holistix, Inc.)403.4.4 e-Commerce ConsultingGuide developing e-businesses Consulting servicesAccenture (formerly Andersen Consulting)iPlanetSAPSun MicrosystemsKintanaXpediorErnst & YoungDeloitte & ToucheeRunwayAnswerthink Consulting Group41