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5/25/11 1 Chapter 13 Launching a Successful Online Business and EC Projects Chapter 13 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 1 Learning Objectives 1. Understand the fundamental requirements for initiating an online business. 2. Describe the process of initiating and funding a start- up e-business or large e-project. 3. Understand the process of adding EC initiatives to an existing business. 4. Describe the issues and methods of t ransforming an organization into an e-business. 5. Describe the process of acquiring Web sites and evaluating building versus hosting options. 6. Understand the importance of providing and managing content and describe how to accomplish this.
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Apr 14, 2018

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Lim Cia Chien
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Chapter 13

Launching a Successful Online

Business and EC Projects

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 1

Learning Objectives

1.  Understand the fundamental requirements for initiating an online business.

2.  Describe the process of initiating and funding a start-up e-business or large e-project.

3.  Understand the process of adding EC initiatives toan existing business.

4.  Describe the issues and methods of transforming anorganization into an e-business.

5.  Describe the process of acquiring Web sites andevaluating building versus hosting options.

6.  Understand the importance of providing andmanaging content and describe how to accomplishthis.

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 2

Learning Objectives

7.  Evaluate Web sites on design criteria, such asappearance, navigation, consistency, andperformance.

8.  Understand how search engine optimization canhelp a Web site obtain high placement in searchengines.

9.  Understand how to provide some major support e-

services.10.  Understand the process of building an online

storefront.

11.  Be able to build an online storefront with templates.

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 3

Getting into E-Commerce

  Almost any e-commerce initiative will require

support activities and services, as well as

plans for attracting visitors to a Web site

 Developing a Web site

 Hosting the Web site and selecting and registeringa domain name

 Developing, updating, and managing the content of a Web site

 Designing a Web site for maximum usability

 Providing support services

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 4

Starting a New Online Business

 AN E-START-UP IS A START-UP

 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

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 5

Starting a New Online Business

 ONLINE BUSINESS PLANNING

 business plan

 A written document that identifies acompany’s goals and outlines how the

company intends to achieve the goals andat what cost.

 business case

 A document that justifies the investment of internal, organizational resources in aspecific application or project.

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 6

Starting a New Online Business

 FUNDING A NEW ONLINE BUSINESS First Round of Initial Funding

 angel investor 

 A wealthy individual who contributes personal funds andpossibly expertise at the earliest stage of businessdevelopment.

 Second Round of Financing venture capital (VC)

Money invested in a business by an individual, a group of individuals (venture capitalists), or a funding company inexchange for equity in the business.

 Additional Funding: A Large Partner 

 The IPO 

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 7

Adding E-Commerce Initiatives of 

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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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 8

Adding E-Commerce Initiatives of Transforming to an E-Business

 TRANSFORMATION TO AN E-

BUSINESS

 What Is Organizational Transformation?

 How an Organization Can Be

Transformed into an E-Business

 Business Process Reengineering

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 9

Adding E-Commerce Initiatives of 

Transforming to an E-Business

 business process management (BPM)

Method for business restructuring that

combines workflow systems and redesign

methods; covers three process categories—

people-to-people, systems-to-systems, andsystems-to-people interactions.

 Software Tools for Facilitating

Transformation into E-Business

 Change Management

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 10

Adding E-Commerce Initiatives of Transforming to an E-Business

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 11

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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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 12

Building or Acquiring a Web Site

 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.

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 13

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 contentStep 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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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 14

Web Site Hosting andObtaining a Domain Name

 WEB HOSTING OPTIONS

 storebuilder service

 A hosting service that provides disk spaceand services to help small andmicrobusinesses build a Web site quicklyand cheaply.

 Web hosting service

 A dedicated Web site hosting company thatoffers a wide range of hosting services andfunctionality to businesses of all sizes.

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 15

Web Site Hosting and

Obtaining a Domain Name

 mirror site

 An exact duplicate of an original Web site

that is physically located on a Web server 

on another continent or in another country.

 co-location

 A Web server owned and maintained by the

business is given to a Web hosting service

that manages the server’s connection to the

Internet.

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 16

Web Site Hosting andObtaining a Domain Name

 ISP hosting service

 A hosting service that provides an

independent, stand-alone Web site for small

and medium-sized businesses.

 self-hosting

When a business acquires the hardware,software, staff, and dedicated

telecommunications services necessary to

set up and manage its own Web site.

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 17

Web Site Hosting and

Obtaining a Domain Name

 REGISTERING A DOMAIN NAME

 domain name

 A Web address that identifies a user (organization) via its Internet-connection

server. It creates the Uniform ResourcesLocator (URL).

 domain name registrar 

 A business that assists prospective Website owners with finding and registering thedomain name of their choice.

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 18

Content Creation,Delivery, and Management

 CATEGORIES AND TYPES OF

CONTENT

 dynamic Web content

Content that must be kept up-to-date.

 commodity content

Information that is widely available and

generally free to access on the Web.

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 19

Content Creation,

Delivery, and Management

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 20

Content Creation,Delivery, and Management

 Primary and Secondary Content

 cross-selling

Offering similar or complementary products and

services to increase sales.

 up-selling

Offering an upgraded version of the product in

order to boost sales and profit.

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 21

Content Creation,

Delivery, and Management

 CREATION OR ACQUISITION?

 Buying Content

 Buying from a Syndicator  syndication

The sale of the same good (e.g., digital content)to many customers, who then integrate it withother offerings and resell it or give it away free.

 Web syndication

 A form of syndication in which a section of aWeb site is made available for other sites to use.

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 22

Content Creation,Delivery, and Management

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 23

Content Creation,

Delivery, and Management

 Representative Content-Related Vendors

 Content Delivery Networks

 personalized content

Web content that matches the needs and

expectations of the individual visitor. e-newsletter 

 A collection of short, informative articles sent atregular intervals by e-mail to individuals who have

an interest in the newsletter’s topic.

 Writing Effective Content

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 24

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 and Updating

 Measuring Content Quality

 Pitfalls of Content Management

 Content Removal

 Content Management Software

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 25

Content Creation,

Delivery, and Management

 CATALOG CONTENT AND ITS

MANAGEMENT

 CONTENT MAXIMIZATION AND

STREAMING SERVICES

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 26

Web Site Design

 Navigation

 Consistency

 Response time

  Appearance

 Quality assurance

  Availability

 Interactivity

 Content

 Usability

 Security

 Scalability

 Web Site Design Criteria

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 27

Web Site Design

 information architecture

How the site and its Web pages are

organized, labeled, and navigated to

support browsing and searchingthroughout the Web site.

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 28

Web Site Design

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 29

Web Site Design

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 30

Web Site Design

 site navigation

 Aids that help visitors find the

information they need quickly and easily.

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 31

Web Site Design

 Site Map and Navigation

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 32

Web Site Design

 PERFORMANCE

 COLORS AND GRAPHICS

 usability (of Web site)

The quality of the user’s experience

when interacting with the Web site. 

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 33

Providing E-Commerce

Support Services

 WHO BUILDS THE WEB SITE?

 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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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 34

Providing E-CommerceSupport 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.

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 35

Providing E-Commerce

Support Services

 CUSTOMER RELATIONSHIP

MANAGEMENT

 Using Content to Build Customer 

Relationships

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 36

Opening a Web Storefront

 OPTIONS FOR ACQUIRING STOREFRONTS Build them from scratch

 Build them from components Build with templates (storebuilders)

 Selecting a Development Option Customers

 Merchandising

 Sales service Promotion

 Transaction processing

 Marketing data and analysis

 Branding

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 37

Opening a Web Storefront

  YAHOO! SMALL BUSINESS

 Take a Tour 

 Using the Templates

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 38

Managerial Issues

1.  What does it take to create a successfulonline business?

2.  Is creating a Web site a technical task or amanagement task?

3.  How do we attract visitors to the Web site?

4.  How do we turn visitors into buyers?

5.  Are best practices useful?6.  How much of my new business should wegive to funders?

7.  How do we save on Web hosting expenses?

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 39

Summary

1.  Fundamental requirements for initiating an

online business.

2.  Funding options for a start-up online

business.

3.   Adding e-initiatives.4.  Transformation into e-business.

5.  Web site hosting options for an online

business.

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Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 40

Summary

6.  Provide content that attracts and keeps Web

site visitors.

7.  Design a visitor-friendly site.

8.  High placement in search engines is key.

9.   Almost all EC sites need support services.

10. The process of building a storefront dependson the option of who builds it.

11.  Building an online storefront with templates.

Chapter 13

Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 41

 All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.