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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Web Site Design
Chapter 13
Copyright © 2009 Pearson Education,Inc. Publishing as Prentice Hall 29
Web Site Design
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Chapter 13
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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
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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
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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.