Electronic Commerce Software

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31 Οκτ 2013 (πριν από 4 χρόνια και 8 μήνες)

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Chapter 9

Electronic Commerce

Learning Objectives

In this chapter, you will learn about:

Basic functions of electronic commerce software

Characteristics to look for in an externally hosted
electronic commerce solution

Electronic store models

Software for small electronic commerce sites

Learning Objectives (cont.)

Software for medium
sized to large electronic
commerce sites

Electronic commerce solutions for large
organizations with an existing infrastructure

Supply chain management software

Customer relationship management software

Automated content management software

Electronic Commerce Software Basics

The expected size of the enterprise and its projected
traffic and sales


Determine your target commerce audience.

Use a full
service ISP or host the electronic commerce
site in

Electronic Commerce Software

A catalog display

Shopping cart capabilities

Transaction processing

Tools to populate the store catalog and to maintain
the catalog

Tools to create and edit other site content

Catalog Display

A small commerce site can have a simple catalog,
which is a static listing of goods and services.

Larger catalogs have photos of items, descriptions,
and a search feature.

For example, “MP3.com” is a large commerce

site and “Women in Music” is a small site.

Catalog Display

Shopping Cart

Online forms were used for online shopping.

A new way of online shopping is by using shopping

SalesCart is one company that makes this type of
shopping cart software.

Based Method

Electronic Shopping Cart

Shopping Cart

The Web is a stateless system unable to remember
anything from one transmission or session to

It must distinguish from shopper from another.

One way to uniquely identify users and to store
information about their choices is to create and store

Transaction Processing

Transaction processing occurs when the shopper
proceeds to the virtual checkout counter.

Transaction processing is the trickiest part of the
electronic sale.

Software needs to calculate price, volume discounts,
sales tax, and shipping costs.

Sales tax may vary in different states.

Transaction Processing

Some electronic commerce software provides
connections to accounting software so that Web sales
can be entered simultaneously.

Connections between electronic commerce software
and the accounting software are handled by a
separate type of software called middleware.

Major middleware vendors include BEA Systems,
Broadvision, Digital River, and IBM Tivoli Systems.

Electronic Commerce Tools

Inexpensive storefronts are offered by established
portals, such as Yahoo!

Robust software suites run on large, dedicated
computers and interact with database systems, such
as Oracle.

B2B systems must be able to connect to existing
legacy systems, including ERP software packages.

Application Servers

A group of electronic software packages known as
application servers give these companies the power
and flexibility they need.

An application server is software that takes the
request messages received by the Web server and
performs some kind of action based on the contents
of these messages.

The actions that the application server software
perform are determined by the rules used in the

These rules are called business logic.

Application Servers

Application server software is grouped into two types:
based and component

A page
based application server returns pages
generated by scripts that include the rules for
presenting data on the Web page with the business

Common page
based systems include Macromedia’s
Coldfusion, Java server pages, Microsoft’s Active
server pages, and PHP.

Application Servers

A component
based application server separates the
presentation logic from the business logic.

Each component of logic is created in its own module.

Common component
based systems include
Enterprise JavaBeans, Microsoft’s Component Object
Model, and the Common Object Request Broker

Application Servers

Application server software licenses range in cost
from $2,000 to $35,000.

Companies selling products in this category include
Borland’s AppServer, Hewlett
Packard’s Total
eServer, iPlanet’s Application Server, IBM’s
WebSphere Application Server, Oracle’s Oracle
Application Server, and Sybase’s EAServer.

Application Servers

Application servers usually obtain the business logic
information that they use to build Web pages from

A database manager is software that stores
information in a highly structured way.

Large information systems that store the same data in
many different locations are called distributed
information systems.

Application Servers

Many B2B commerce systems must be able to
connect to existing information systems, such as
enterprise resource planning (ERP) software.

Application Servers

Content Management Tools

Most commerce software comes with wizards and
other automated methods for creating template

A number of companies offer content management

Some of these tools are extensions of Web site
creation tools.

Macromedia Spectra is one such tool and it works
with Dreamweaver and Dreamweaver UltraDev.

Commerce Hosting Services

The total cost of setting up your own in
house Web
commerce site is expensive.

Web hosting services allow businesses to start
electronic commerce inexpensively.

Web hosting services provide all the services that an
ISP does.

Basic Electronic Commerce

Software Packages

Basic packages are free or low
cost electronic
commerce software supplied by the Web host for
building electronic commerce sites that will be kept
on the host’s server.

Services in this category usually cost less than a few
hundred dollars per month, and the software is
available on the host site, allowing companies to
immediately begin building and storing a storefront
on the host’s server.

Basic Host Services

Hosting services in this class offer adequate space
for a Web store and for forms
based shopping, but do
not provide shopping carts.

Often, they do not include transaction

Examples of these types of hosts are BizLand.com
and HyperMart.

Customer purchase transactions are handled by e
mail in this host service.

Shared Mall
Style Hosting

Shared hosting sites provide online stores with good
services, good Web creation tools, and little or not
banner advertising clutter.

Web hosts in this group charge a monthly fee, a setup
fee, and may also charge a percentage for fixed
amount for each customer transaction.

style hosts provide shopping cart software or the
ability to use another vendor’s shopping cart

Shared Mall
Style Hosting

style hosting also offers transaction
through one of a few merchant services.

These merchant services allow customers to choose
to purchase their goods and services with a credit
card, electronic cash, or other form of payment.

Quality Web hosts in this category include Bigstep,
Yahoo! Store, FedEx eCommerce Builder, and eBay

Shared Mall
Style Hosting

Electronic commerce stores get a variety of services
for a low monthly fee.

Web hosting customers have their own domain name
and IP address.

Advantages of a shared Web host over dedicated
hosting or self

Low setup fee

No staff and capital costs

Free technical support

Yahoo! Store

Yahoo! Store is a good value among full
shared hosting sites.

Merchants can create, change, and maintain their
Yahoo! storefronts through a Web browser.

On its own site, Yahoo! holds all the stores’ pages in
a proprietary format.

Yahoo’s management page contains many
management, reporting, and global site setting tools.


Bigstep.com provides a well
designed storefront
package without charging hosting fees.

Bigstep.com enables merchants to create, change,
and maintain a storefront through a Web browser.

Bigstep.com’s reports provide data mining

Data mining can help business find customers with
common interests.


Bigstep.com’s reports can answer the following

How many visitors are coming to the site?

What is the average length of stay for each visitor
on each page?

Which pages lead to purchases?

What advertisements or links have brought
qualified visitors to the page or site?

What is average number of pages that each visitor

Are repeat customers attracted to this site?

Estimated Operating Expenses

Operating Costs

Cost Estimate

Initial site setup fee


Annual maintenance fee (12 x $100)


Domain name registration


Scanner for photo conversion or digital camera


Photo editing


Occasional HTML and design help


Merchant credit card setup fee


Total first
year cost


Estimated Operating Expenses

The first
year operating costs can vary depending on
the Web host selected.

A good guideline for processing fees is to multiply
your expected annual gross sales by 3%.

Setup and Web site maintenance costs include:
equipment, communications, physical location and

Midrange Packages

Midrange packages allow the merchant to have
explicit control over merchandising choices, site
layout, internal architecture, and remote and local
management options.

Midrange software has connectivity with database
systems and the store’s catalog information.

INTERSHOP enfinity, WebSphere, and Commerce
Server 2000 are examples of this type of software.


INTERSHOP enfinity is produced by INTERSHOP
Communications Inc.

This software provides:

search and catalog capabilities

electronic shopping carts

online credit card transaction processing

connection to existing business systems and
databases, such as DB2 and Oracle

It has setup wizards and catalog and data management

WebSphere Commerce Suite

IBM produces the WebSphere Commerce Suite.

It comes complete with catalog templates, setup
wizards, and advanced catalog tools.

It can be used both for B2B and B2C applications.

This system runs on AIX, Solaris, and Windows NT
operating systems.

Commerce Server 2000

Microsoft creates the Commerce Server 2000.

Commerce Server 2000 provides tools for:

User profiling and management

Transaction processing

Product and service management

Target audience marketing

Commerce Server 2000

Microsoft pipelines model a series of business

The Commerce Interchange Pipeline for B2B

The Order
processing Pipeline for B2C

Commerce Server 2000 has tools for advertising,
promotions, cross
selling and customer targeting and

Solutions for Large Firms

level commerce software is called e
business software.

business software interacts with a wide variety of
existing back office systems, including database,
accounting, and ERP systems.

Enterprise Solutions for Large Firms

An enterprise
scale solution requires:

a Domain Name Server (DNS)

an SMTP system to handle e

an HTTP server

an FTP server for upload and download

a database server

Enterprise Solutions for Large Firms

Examples of e
business systems:

IBM’s WebSphere Commerce Suite, Pro Edition

Netscape’s Netscape CommerceXpert

Oracle’s iStore

Pandesic Web Business solution (Intel and SAP)

Typical Large e

System Architecture

Customer Relationship

Management Software

The goal of CRM is to understand each customer’s
specific needs and then customize a product or
service so that it meets those needs.

CRM software must obtain data from operations
software that conducts activities, such as sales
automation, customer service center operations, and
marketing campaigns.

Siebel Systems’ E
Business 7 is one of the leading
comprehensive CRM packages.

Oracle Global CRM, PeopleSoft CRM, and MySAP
CRM are other CRM products.