Chaffey, E-Business and E-Commerce, Third edition, Instructors
ManualEbusiness and Ecommerce Management 4th edition
Self assessment questions for students at the end of each
chapter.
Note, that answers to in-chapter activities and other questions
are only available to lecturers who register via the Pearson site
at www.pearsoned.co.uk/chaffey. Chapter 1Self-assessment
questions1. Distinguish between e-commerce and e-business.This can
best be explained by referring to different elements shown in
Figure 1.1 i.e.sell-side e-commercebuy-side e-commerceinternal use
of electronic communications to support business processes.
E-business is generally understood to include all three
elements. E-commerce is commonly used to refer to either the first
one or first two of these elements, but less commonly the third.
E-business is broader in scope than e-commerce.
2. Explain what is meant by buy-side and sell-side
e-commerce.Again refer to Figure 1.1. Buy-side e-commerce is using
communications technology to support the upstream supply chain from
procurement to inbound logistics. Sell-side refers to selling and
distributing products and services from an organization to its
customers.
3. Describe the different services that can be offered to
customers via a web presence.This is covered in more detail in
Chapter 5 where stage models are referred to (p214):outline
information services on company and productsdetailed information
services on products, e.g. technical infosheetstransactional
e-commerce purchases can be made onlinetransactional customer
service questions can be asked and answers supplied online
4. Summarize the consumer and business adoption levels in your
country. What seem to be the main barriers to adoptionClickz
(www.clickz.com/stats) is a good source of country information. For
business, the main barriers are highlighted by the DTI (2000)
survey:lack of imperative;security risks.
For consumers, the Which report highlights fears about security
and privacy as well as the lack of a perceived need.
5. Outline the reasons why a business may wish to adopt
e-commerce. The 6Cs are a good framework here:Cost reduction less
use of physical resources and staff.New Capability e.g. to sell
into an overseas market.Improved communication internal and
external.Control better visibility/information for managers of
trading relationships.Customer service more detailed information,
faster response can be provided 24 hours, and 7 days a
week.Competitive advantage any of the above factors may provide
this, but it is likely to be short lived.
6. What are the main differences between business-to-business
and business-to-consumer e-commerce?
Refer also to the section in Chapter 2 (p43). In terms of volume
of transactions B2B dwarfs B2C. B2C transactions will typically be
smaller and less frequent for a trading relationship, but this is a
generalization.
7. Summarize the impact of the introduction of e-business on
different aspects of an organization.The McKinsey 7S model is a
useful framework for looking at the different aspects of a business
that may be affected by the move to e-business.Strategy new
strategic responses are requiredStructure new structures and
responsibilities may be requiredSystems new information systems and
new processes will be requiredStyle less likely to change, but some
organizational styles are more responsive to changeStaff new
responsibilitiesSkills new skillsSuperordinate goals higher level
aims may be updated depending on the business.8. What is the
relevance of intermediary sites such as Kelkoo (www.kelkoo.com) to
the B2C company?
Companies must think about whether they are represented on such
intermediaries. If they are not, they may lose potential business.
They also need to consider the positioning of their products
relative to competitors who also use the intermediary.
Note that Mondus wound down operations in 2002. Another example
is Clearly Business, a joint venture between Barclays and
Freeserve. Chapter 2
1.Outline the main options for trading between businesses and
consumers.These are:B2C retail to consumersB2B
interorganizationalC2C consumer interactions e.g. auctionsC2B
customer make offers to businesses, e.g. Priceline2.Explain the
concept of disintermediation and reintermediation with reference to
a particular industry; what are the implications for a company
operating in this industry?Example air travel. A carrier has the
option of:distintermediation selling direct from its web
sitereintermediation selling via new online intermediaries with new
pricing models such as Priceline, Lastminute or Expedia3.Describe
the three main alternative locations for trading within the
electronic marketplace.From companys own web siteFrom an
intermediary web site or marketplaceBy making bids after reviewing
customers web sites4.What are the main types of commercial
transactions that can occur through the Internet or in traditional
commerce?See Table 2.5:Commercial (trading) mechanism1. Negotiated
deal2. Brokered deal3. Auction4. Fixed-price sale5. Pure markets6.
Barter5.E-business involves re-evaluating value-chain activities.
What types of changes can be introduced to the value chain through
e-business?Improve speed of information flow between primary
activities of value chainIncrease depth of information shared
between activitiesReduce costs of information processing6.List the
different business models identified by Timmers (1999).Timmers
(1999) identifies no less than 11 different types of business model
that can be facilitated by the web as follows:1. E-shop marketing
of a company or shop via web.2. E-procurement electronic tendering
and procurement of goods and services.3. E-malls a collection of
e-shops such as Barclays Square (www.barclays-square.com). 4.
E-auctions these can be both for B2C and B2B as is the case with
eBay.5. Virtual communities these can be B2C communities such as
Xoom (www.xoom.com) or B2B communities such as Vertical Net
(www.vertical.net); these are important for their potential in
e-marketing and are described in the Focus on Online Communities
section in Chapter 9.6. Collaboration platforms these enable
collaboration between businesses or individuals e.g. E-groups
(www.egroups.com), now part of Yahoo! (www.yahoo.com) services.7.
Third-party marketplaces Marketplaces are described in the Focus On
section of Chapter 7.8. Value-chain integrators offer a range of
services across the value chain.9. Value-chain service providers
specialize in providing functions for a specific part of the value
chain such as the logistics company UPS (www.ups.com).10.
Information brokerage providing information for consumers and
businesses, often to assist in making the buying decision or for
business operations or leisure.11. Trust and other services
examples of trust services include Which Web Trader
(www.which.net/webtrader) or TRUSTE (www.truste.org) that
authenticate the quality of service provided by companies trading
on the web.Timmers, P. (1999) Electronic commerce strategies and
models for business-to-business trading John Wiley series in
information systems. Chichester, England.These can grouped as shown
in Figure 2.11.7.Describe some alternative revenue models for a web
site from a magazine publisher.See Figure 2.11.Subscription:
per-month paymentPay per view: pay for each article, or articles up
to a valueAdvertising revenue for advertising space on
siteAffiliate revenue for referral to other sites leading to
sale8.Draw a diagram summarizing the different types of online
marketplaceRefer to Figure 2.9.
Chapter 3
1.What is the difference between the Internet and the World Wide
Web?Use TV analogy: Internet is the network for transmitting data
globally, web is the method of delivering the content
(channels).The InternetThe Internet refers to the physical network
that links computers across the globe. It consists of the
infrastructure of network servers and communication links between
them that are used to hold and transport information between the
client PCs and web servers. 2.Describe the two main functions of an
Internet Service Provider (ISP). How do they differ from
Applications Service Providers?Internet Service Provider (ISP)A
provider enabling home or business users a connection to access the
Internet (1). They can also host web-based applications.ASPs can
host specific business applications.Application serverAn
application server provides a business application on a server
remote from the user.3.Distinguish between intranets, extranets and
the Internet.Internet is public, intranet restricted to
organizations employees, extranet has restricted access beyond
company.IntranetA private network within a single company using
Internet standards to enable employees to share information using
e-mail and web publishing.
ExtranetFormed by extending the intranet beyond a company to
customers, suppliers and collaborators. 4.Describe the standards
involved when a web page is served from a web server to a users web
browser.Request page and deliver page (HTTP), transfer request and
information (TCP/IP), render page in browser (HTML).TCP/IPThe
Transmission Control Protocol is a transport layer protocol that
moves data between applications. The Internet protocol is a network
layer protocol that moves data between host computers.
HTTP (Hypertext transfer protocol)HTTP or Hypertext transfer
protocol is a standard which defines the way information is
transmitted across the Internet between web browsers and web
servers.
HTML (Hypertext Markup Language)HTML is a standard format used
to define the text and layout of web pages. HTML files usually have
the extension .HTML or .HTM.5.What are the management issues
involved with enabling staff access to a web site.Cost of
access.Time spent in access lost from main activities.Access to
illegal material.6.Explain the following terms:HTMLHTTPXMLFTPHTML
(Hypertext Markup Language)HTML is a standard format used to define
the text and layout of web pages. HTML files usually have the
extension .HTML or .HTM.
HTTP (Hypertext transfer protocol)HTTP or Hypertext transfer
protocol is a standard which defines the way information is
transmitted across the Internet between web browsers and web
servers.
XML or eXtensible Markup LanguageA standard for transferring
structured data, unlike HTML which is purely presentational.File
Transfer Protocol (FTP)Standard used for uploading and downloading
files to and from web servers7.What is the difference between
static web content written in HTML and dynamic content developed
using a scripting language such as JavaScript?Static content
appears the same to all users. Dynamic content can be updated to
reflect the environment, e.g. time or personal preferences.8.What
software and hardware are required to access the Internet from
home?Software: web browser, operating system, TCP/IP stack.
Hardware: PC plus modemChapter 4
1.Why is environmental scanning necessary?It is necessary at a
macro-level to understand new constraints on conducting business
such as legal and technical constraints. These may also present
opportunities. On a micro-level it is important to be responsive to
customers needs and competitors actions.2.Give an example how each
of the macro-environment factors may directly drive the content and
services provided by a web site. social localized content for
different cultures legal privacy statement economic funding and
awards may be possible from governmental sources political same as
above technological the incorporation of personalization3.Summarize
the social factors that govern consumer access to the Internet. How
can companies overcome these influences once people venture online?
Cost of access technology Cost of online access per minute Peer
pressure Security fears Perception of need for online
accessCompanies should clearly communicate the benefits of online
trading and make reassurances about the threats.4.What actions can
e-commerce managers take to safeguard consumer privacy and
security?Privacy statements should explain the actions taken to the
customers. Firewalls should be maintained to minimize the risk of
unauthorized access to customer data. The relevant data protection
act should be followed.5.What are the general legal constraints
that a company acts under in any country?See Table 4.2. Includes
Consumer data protection and privacy laws Copy promoting goods
Sales of goods/returns Trademark law Intellectual property law
Disability and discrimination6.How do governments attempt to
control the use of the Internet?They control through policies to
promote its use and through monitoring messages through
ISPs.7.Summarize adoption patterns across the continents.Refer to a
source such as the International Telecommunications Union
(www.itu.int) for the latest statistics.
8.How should innovation be managed?It should be managed by
frequent review of new opportunities, achieving balance between
adopting all new technologies and conservative non-adoption and
careful selection of technologies that will achieve competitive
advantage.
Chapter 5
1.What are the key characteristics of an e-business strategy
model?All strategy models should: Be based on assessment of
internal and external environment Have clearly defined SMART
objectives backed up by vision Have strategies, tactics and
implementation that select the best techniques to achieve these
strategies Have monitoring and control that assess whether the
objectives are being achieved and a feedback loop to ensure
corrective action occurs.For e-business in particular, the strategy
objectives should define the balance of online and offline trading
with customers, suppliers and distributors. The tactics should look
at how investment in information systems and revising business
processes should occur to hit these targets.2.Select a retailer or
manufacturer of your choice and describe what the main elements of
its situation analysis should comprise.Situation analysis is
summarized in Figure 5.6, p213. It includes evaluation of the
external environment as described in Chapter 4 (SLEPT or PEST) and
internal resources using techniques such as SWOT, application
portfolio analysis and also demand and competitor analysis.3.For
the same retailer or manufacturer suggest different methods and
metrics for defining e-business objectives.Objectives should be
SMART (Chapter 12). Examples of metrics are in Table 5.4, p227,
e.g. Revenue amount Revenue source (which geographical markets,
segments and products) Acquisition and retention of particular
segments New product development Cost and lead-times that are part
of the supply chain4.For the same retailer or manufacturer assess
different strategic options to adopt for e-business.This refers to
the types of decisions outlined in the strategy section of this
chapter. i.e. Decision 1 E-business channel priorities Decision 2
Organizational restructuring and capabilities Decision 3 Business,
service and revenue models Decision 4 Marketplace restructuring
Decision 5 Market and product development strategies Decision 6
Positioning and differentiation strategiesChapter 6
1.Define supply chain management, how does it relate to:
logistics; the value chain concept; value networks?Supply chain
management (SCM)The coordination of all supply activities of an
organization from its suppliers and partners to its
customers.Logistics large overlap according to definition from
Institute of Logistics and Transport:Logistics is the time-related
positioning of resource, or the strategic management of the total
supply chain. The supply chain is a sequence of events intended to
satisfy a customer. It can include procurement, manufacture,
distribution and waste disposal, together with associated
transport, storage and information technology.Value chain concept
has similar components such as inbound and outbound logistics,
production and sales and marketing. Different orientation which is
how to deliver customer value. Plus separate identification of
secondary activities such as HR and IS.Value networks interactions
between different value chains of a range of organizations.2.What
is the difference between a push orientation to the value chain and
pull orientation.A change in supply chain thinking, and also in
marketing communications thinking is the move from push models of
selling to pull models or combined push-pull approaches. The push
model is illustrated by a manufacture who perhaps develops an
innovative product and then identifies a suitable target market. A
distribution channel is then created to push the product to the
market. This situation is shown in Figure 6.3 (a) where it can be
characterized by the statement This is a great product, now who
shall we sell it to? or the quip about the original model T Ford
you can have any colour, so long as it is black. The typical
motivation for a push approach is to optimize the production
process for cost and efficiency.3.How can information systems
support the supply chain?Information systems are used to increase
the efficiency of information flow by:delivering more information
(e.g. sales data in Tesco TIE system)analysing information (e.g.
alerting a large order)delivering it more rapidly (e.g. reduced
lead times in e-procurement)4.What are the key strategic options in
supply chain management?How to restructure supply chain (vertical
integration/disintegration/virtual integration)How to restructure
(disintermediation, reintermediation, countermediation)How to
restructure relationships in a value networkNew procurement models
e.g. auctions and B2B exchanges
Chapter 7
1Outline the two main methods how companies purchase supplies
and the two broad divisions of supplies needed.There are two broad
categories of procurement; those that relate to manufacturing of
products (production-related procurement) and operating or
non-production-related procurement that supports the operations of
the whole business and includes office supplies, furniture,
information systems, MRO goods and a range of services from
catering, buying travel or professional services such as consulting
and training. Raw materials for the production of goods and MRO
goods are particularly important since they are critical to the
operation of a business.2Taking your answer from one, give examples
of B2B exchanges that have been created to meet these purchasing
needs.Production-related procurement examples include Vertical Net
(www.vertical.net), sites such as www.oilandgas.com,
Industry-to-Industry (www.itoi.com) which trades petrochemicals,
and in pharmaceuticals (www.chemdex.com).MRO type sites include the
Staples example from Schlumberger.3Draw a sketch that shows the
main stages and people involved in traditional procurement and
e-procurement. This is Figure 7.1 on p289.4Outline the main reasons
for e-procurement.Cost reductionReduced lead time Better quality
See also the five rights of procurement on p289.5What is maverick
purchasing? What safeguards need to be introduced into
e-procurement to avoid this?This is where purchasing is poorly
controlled and users within departments may order products that are
not from a favoured supplier, do not meet company standards (e.g.
of software) or are unnecessary. E-procurement enables checks such
as limits on purchasing or from preferred sources.6Explain the
differences between the buy-side, sell-side and marketplace options
for e-procurement.Buy-side Buyer invites bids through tender placed
on its own site.Sell-side Buyer goes to supplier web site to
purchase.Marketplace Buyer goes to a neutral marketplace to
purchase.7Outline the benefits and disadvantages of each of the
options in 6.Buy-side Only suits really large buyers, but displaces
work to suppliers. Key suppliers may be missed if unaware of
tender. Can specify integration with IT systems.Sell-side Effort
placed on buyer to find sources. Integration with IT systems
potentially more difficult.Marketplace Theoretically gives widest
range of suppliers and if integrated with a standard exchange which
gives a standard method of data exchange and flexibility to move
suppliers. Difficulty in choosing exchange with critical mass.8What
are the organizational implications of introducing
e-procurement?Less staff time involved with procurement requires
making staff redundant or re skilling.Education and training needed
to sell system to the staff using it.Better control of purchasing
(reduce maverick purchasing).Chapter 8
1Explain the link between e-marketing and e-business and why
they may be considered separately.E-marketing is a subset of
e-business focusing on sell-side e-commerce and delivering value to
customers. Adding value does also need to consider the upstream
supply chain since this influences cycle time and product
quality.2Outline the stages in a strategic e-marketing planning
processes, for each stage noting two aspects that are of particular
importance for e-marketing.Situation where are we now? 1. External
(customers, competitors, PEST), 2. Internal resourcesObjectives
where do we want to be? Online revenue contribution, complementary
vs. replacementStrategy how do we get there? Market and product
positioningTactics how exactly do we get there? 6Ps, in particular,
promotion and placeAction what is our plan? Project planning and
resourcingControl did we get there? Marketing research3What is the
Internet contribution and what is its relevance to e-marketing
strategy?Can consider a direct and indirect form:Direct Online
revenue contributionAn assessment of the direct contribution of the
Internet or other digital media to sales, usually expressed as a
percentage of overall sales revenue.Indirect Online promotion
contributionAn assessment of the proportion of customers (new or
retained) who use the online information sources and are influenced
as a resultThis is useful for objective setting, highlighting the
importance of the new channel.4What factors will govern the
Internet contribution that is set for a given organization?Deciding
on the objective can use a form of Kumar or de Kare-Silver test
i.e.Kumar: high if:1customer access to the Internet is high;2the
Internet can offer a better value proposition than other media
(i.e. propensity to purchase online is high);3the product can be
delivered over the Internet (it can be argued that this is not
essential for replacement, so it is not shown in the figure);4the
product can be standardized (user does not usually need to view to
purchase).De Kare-Silver: high if:1Product characteristics
2Familiarity and confidence 3Consumer attributes5Why and how should
a company approach benchmarking of online competitors?Why rapidly
evolving marketplace new entrants and new services give competitive
advantage.Approaches companies should review: well known local
competitors (e.g. UK/European competitors for British companies);
well known international competitors; new Internet companies local
and worldwide (within sector and out of sector).Can use
three-criteria test:1Business effectiveness (online revenue,
profitability). 2Marketing effectiveness. Outcomes such as leads
and sales. 3Internet effectiveness. Effectiveness of web site as a
communications tool.
6Describe what is meant by a complementary and replacement
Internet channel strategy and give examples of products for which
companies follow a particular approach. Complementary Internet is
additional channel, but less significant than others high value
products and services with complex buying decision or strong
channel. Replacement Internet becomes main channel to market for
sales and support typically lower value product, or straightforward
buying decision (commodities).7Summarize new opportunities to vary
the marketing mix that arise through deploying the Internet.Use 6Ps
as frameworkProduct (New digital products and value-adds)Price
(Price reduction, new pricing models)Place (New representation on
intermediaries, direct-selling)Promotion (Integration of online and
off-line techniques)People, Processes and Physical evidence (New
forms of service delivery)8How can online and off-line techniques
be used in the control stage of strategy?This question is about
marketing research aspect of control. Refer to Chapter 12.Online
techniques server log file analysis, pop-up surveys, e-mail
auditsOff-line techniques traditional surveys of customer
service.Chapter 9
1.What are the goals of acquisition and retention in an online
context?Customer acquisitionTechniques used to gain new
customersObtain leads via e-mail, qualify via profiling and convert
to salesCustomer retentionMaintain relationships with existing
customers through maintaining a dialogue via e-mail and
web-site2.Outline the differences between permission marketing and
interruption marketing including reference to the terms opt-in and
opt-out.Permission marketingCustomers agree (opt-in) to be involved
in an organizations marketing activities usually as a result of an
incentiveInterruption marketingMarketing communications that
disrupt customers activities, for example, telesales call, and is
not explicitly opt-in.3.Summarize the main types of online
marketing communications for traffic building.Search engine
registrationLink buildingBanner advertising and
sponsorshipPRE-mailAffiliate marketing4.Explain why mixed-mode
buying needs to be understood by those managing an e-commerce
site.Many buying decisions are complex they are not only made
online, but using a combination of online and offline. To influence
the decision companies need to be active both online and offline in
influencing a range of mixed-mode buying scenarios.5.Explain a
range of techniques for attracting repeat visits to a web
site.Direct e-mail with
incentive/offerPersonalizationCommunity/newsCompetitions and
promotions6.What is the difference between personalization and mass
customization?Personalization is generally considered to be
one-to-one marketing where the customer selects their choices. Mass
customization also involves tailoring, but from a limited number of
options. There is overlap between the two concepts.7.How can an
e-commerce site be used to achieve extension in CRM?Customer
extensionTechniques to encourage customers to increase their
involvement with an organizationSee Question 5.8.What are the
management issues in managing data and applications integration in
CRM?Cost of integrationDisruption to service during integrationData
transfer from legacy to new systemsSingle vendor or multi-vendor
sourcingChapter 10
1.Summarize the main types of change that need to be managed
during introduction of e-business.Business level change new
business processesTechnological change new systemsOrganizational
structure changeOrganizational culture changeOrganizational
strategy changePeople change new roles and working practices2.What
approaches must managers take to successfully achieve change
management?Support from senior managementEducation explain why the
system is required by the business and its impact on
staffInvolvement involve employees in specification and
testingTraining explain new procedures and operation of
softwareRisk management assessing problems and putting solutions in
place3.Outline the main stages of a sell-side e-commerce
implementation.InitiationAnalysis/market researchSpecification of
business objectives and application requirementsDesign of solution
including selecting implementation platformIntegrate different
applications and build interfaceMigrate data about customers and
products to the systemTestSystem liveMaintenance4.Explain the role
of prototyping in developing a sell-side e-commerce
solution.PrototypingPrototyping is an iterative process where web
site users suggest modifications before further prototypes and the
live version of the site is developed.The main benefits are as
follows:It prevents major design or functional errors being made
during the construction of the web site that may be costly and time
consuming to fix once the site becomes live and may also damage the
brand. Such errors will hopefully be identified early on and then
corrected.It involves the team responsible for the web site and
ideally the potential audience of the web site in proactively
shaping the web site. This should result in a site that more
closely meets the needs of the users.The iterative approach is
intended to be rapid and a site can be produced in a period of
months or weeks.5.Describe four different approaches to retaining
staff.Various elements of a benefits packageIncrease
remunerationTraining and reskillingShare optionsPensions,
etc.6.What alternative approaches are there to structuring
e-commerce within an organization?1.A separate operating company.
Example Prudential and Egg (www.egg.com).2.A separate business unit
with independent budgets. Example RS Components Internet Trading
Company (www.rswww.com) 3.A separate committee or department
manages and coordinates e-commerce. Example, Derbyshire Building
Society (www.derbyshire.co.uk). 4.No formal structure for
e-commerce. Examples: Many small businesses and the Retail and
Engineering Company.7.Which type of organizational culture is most
amenable to e-business related change?The four types of culture
described in the text are as follows:1.Survival (outward-looking,
flexible) the external environment plays a significant role (an
open system) in governing company strategy. The company will likely
be driven by customer demands and will be an innovator. It may have
a relatively flat structure.2.Productivity (outward-looking,
ordered) interfaces with the external environment are well
structured and the company is typically sales-driven and is likely
to have a hierarchical structure.3.Human relations (inward-looking,
flexible) this is the organization as family, with interpersonal
relations more important than reporting channels, a flatter
structure and staff development and empowerment are thought of
important by managers.4.Stability (inward-looking, ordered) the
environment is essentially ignored with managers concentrating on
internal efficiency and again managed through a hierarchical
structure.Of these, 1 and 3 are the preferred approaches7. What are
some of the risks of e-business change, and how can they be
managed.8. See table (above in Activity 10.5 answer) for a
suggested solutionChapter 11
1What are the risks if analysis and design are not completed
adequately?For an e-commerce servicePoor user interfaceWrong type
of customer services (content and data)Slow performanceBusiness
processes inefficientPoor security2Distinguish between process
analysis and data analysis.Process analysis reviews the sequence
and speed of events in a business transaction such as ordering or
customer service. Data analysis reviews the data requirements and
structure needed to support this process.3What are workflow
analysis and workflow management systems?Workflow
ManagementWorkflow Management (WFM) is the automation of
information flows and provides tools for processing the information
according to a set of procedural rules.4What is legacy data and
what are the options for incorporation into an e-commerce
system.Legacy data is typically from ageing financial, order entry
and accounting systems. This old data is often not integrated and
it is difficult to get a single view of customer or financial data.
It is incorporated into e-commerce systems using middleware or
enterprise application integration.5What are the four requirements
of a secure e-commerce site?1. Authentication (customer needs to
avoid fraud from customer, alternatively customer needs to check
reputable company)2. Privacy and confidentiality (main aspect is to
protect customer privacy)3. Integrity (applies equally to both)4.
Non-repudiability (required by company)6Explain the concepts of
digital keys and digital signatures and how they relate.Digital
certificates (keys)Consist of keys made up of large numbers that
are used to uniquely identify individuals.
Digital signaturesA method of identifying individuals or
companies using public key encryption.Digital certificates are used
to encrypt digital signatures to achieve identification of
individuals.7Explain the notation used for use-case analysis.Figure
11.8 shows the notation for actors (people) and use-cases
(activities in a sequence).8Summarize the characteristics of a
usable web site according to Jakob Nielsen (www.useit.com).Customer
orientationSite navigation and structurePage designContent
designChapter 121Summarize how the activities involved with
implementation and maintenance relate to analysis and design
activities in previous chapters.Figure 12.1 on p514 explains this.
For a prototyping approach, analysis precedes design which precedes
implementation and maintenance. However, these are repeated
consecutively in the iterative approach of prototyping.2What are
the risks of launching a new e-commerce site if implementation is
not conducted effectively?Low conversion rate to outcomes, high
attrition rate (due to inadequate testing of design)Low repeat
visits (due to inadequate testing of design)Data errorsErrors and
site downtimeSecurity breaches3Distinguish between static and
dynamic content and methods of achieving them.Static web contentIt
is a web page view that is identical every time it is loaded. This
is typically achieved through static HTML.Dynamic web contentIt is
a web page view that varies according to user preferences or
environment constraints. This is typically achieved through dynamic
access of databases according to user requirements.4What are the
objectives of testing? How do these relate to an e-commerce
site?Identify errors in requirements analysis, e.g. poor interface
design, wrong information or services availableIdentify technical
errors (bugs), e.g. financial transactions5Summarize the advantages
and disadvantages of the different changeover methods.Table
Advantages and disadvantages of the different methods of
implementationMethodMain advantagesMain disadvantages
1 Immediate cutoverStraight from old system to new system on a
single dateRapid, lowest costHigh risk. Major disruption if serious
errors with system
2 Parallel runningOld system and new system run side-by-side for
a periodLower risk than immediate cutoverSlower and higher cost
than immediate cutover
3 Phased implementationDifferent modules of the system are
introduced sequentiallyGood compromise between methods 1 and
2Difficult to achieve technically due to interdependencies between
modules
4 Pilot system Trial implementation occurs before widespread
deploymentEssential for multinational or national rolloutsHas to be
used in combination with the other methods
6What are the issues for managers of content
management?Frequency of update or event that prompts updateChecking
quality of update (review process)Tools used for update7What are
the main elements of an e-commerce site measurement plan?The
framework described in the text is:Channel promotionChannel
behaviourChannel satisfactionChannel outcomesChannel
profitability8What are the elements of a budget for an e-commerce
site enhancement?Tangible business benefits:1Reduced
costs2Increased revenueIntangible business benefits:3Faster time to
market4Improved customer satisfaction/brand equityTangible
costs:1Physical costs2Planning costs3Implementation costs including
staff, hardware and software4Operational costs including staff,
hardware and software