WEB BASED TOOLS FOR

ECOMMERCE

3.1 Web Server Basics

The main job of a Web server computer is to respond

to requests from Web client computers.
The three main elements of a Web server are the:

Hardware
Operating system software
Web server software

Types of Web Sites

An important first step in planning a Web server is to
determine what the company wants to accomplish
with the server.
The company must estimate how many visitors will be
connecting to the Web site and what types of files will
be delivered through the site.
Companies create Web sites in a wide variety of forms
including simple development sites, intranets,
information-only sites for customers, business-tobusiness portals, storefronts, or content-delivery
sites.

3.2 Web Server Performance Evaluation

Benchmarking is a form of testing used to compare

the performance of hardware and software.
Hardware and operating systems are key areas for
benchmarking.
The speed of its connection can affect a Web servers
performance.
Throughput and response time can be used to
measure a servers Web page delivery capability.

3.3 Web Server Software Feature Set

Operating Systems for Web Servers

A computer must have an operating system to run programs

as well as keep track of multiple users logged on to the
system to ensure that they do not interfere with one another.

The most common operating systems for Web servers from

Microsoft are: Windows NT Server, Windows 2000 Advanced
Server, and Microsoft .NET.

Unix-based products are also popular: Linus, Solaris, and

FreeBSD

Web Server Software

The most popular Web server programs in use

today:

Apache
HTTP Server
Microsoft Internet Information Server (IIS)
iPlanet Enterprise Server

Apache HTTP Server

Free and performs efficiently.
Runs on many operating systems and the
hardware that supports them.
Has a built-in search engine and HTML authoring
tools and supports FTP.
Can be managed from either a server console or
a Web server.

Microsoft Internet Information Server (IIS)

Comes bundled with Microsofts Windows

2000 Server operating systems.
Includes an integrated search engine.
Permits administration from a remote server.
Combines HTML pages, ActiveX components,
and scripts to produce dynamic pages.

Sun ONE (iPlanet, Netscape) Web

Server
Formerly sold under the names Netscape
Enterprise Server and iPlanet Enterprise
Server.
Runs on many operating systems, including
HP-UX, Solaris, and Windows.
Its management tools allow administrators to
manage users and monitor server activity
interactively.

3.4 Web Server Software & tools

All e-commerce sites require basic Web server
software to answer HTTP requests from
customers
Apache is the leading Web server software;
works only with UNIX operating systems
Microsofts Internet Information Server (IIS) is the
second major Web server software

Copyright 2007
Pearson Education, Inc.

Slide 4-10

Basic Functionality Provided by Web Servers

Table 4.3, Page 209

Copyright 2007
Pearson Education, Inc.

Slide 4-11

Site Management Tools

All Web servers contain basic site management
tools that verify that links on pages are still valid
and also identify orphan files
Additional site management software and
services such as those provided by Webtrends
can be purchased

Copyright 2007
Pearson Education, Inc.

Slide 4-12

Dynamic Page Generation Tools

Dynamic page generation: contents of Web page
are stored as objects in a database rather than
being hard-coded in HTML, and are fetched when
needed from database
Tools include CGI (Common Gateway Interface),
ASP (Active Server Pages), JSP (Java Server
Pages), etc.
Lowers menu costs, permits easy online market
segmentation, and enables cost-free price
discrimination

Copyright 2007
Pearson Education, Inc.

Slide 4-13

Tools for Interactivity and Active Content

CGI (Common Gateway Interface): Set of standards for
communication between a browser and a program running on a
server that allows for interaction between the user and the server
ASP (Active Server Pages): Enables programmers using
Microsofts IIS package to build dynamic pages
Java: Allows programmers to create interactivity and active content
on the client computer
JSP (Java Server Pages): Similar to CGI and ASP; allows
developers to use a combination of HTML, JSP scripts, and Java to
dynamically generate Web pages in response to user requests
JavaScript: Programming language invented by Netscape that is
used to control objects on a Web page and handle interactions with
browser

Copyright 2007
Pearson Education, Inc.

Slide 4-14

Tools for Interactivity and Active Content

(contd)
ActiveX: Programming language invented by
Microsoft to compete with Java
VBScript: Programming language invented by
Microsoft to compete with JavaScript
ColdFusion: An integrated server-side
environment for developing interactive Web
applications

Copyright 2007
Pearson Education, Inc.

Slide 4-15

Personalization Tools
Personalization: Ability to treat people based on
their personal qualities and prior history with
your site
Customization: Ability to change the product to
better fit the needs of the customer
Cookies the primary method for achieving
personalization and customization

3.5 Web Protocol

The Internet relies on a number of protocols in
order to function properly.
A protocol is simply a standard for enabling the
connection, communication, and data transfer
between two places on a network. Here are some
of the key protocols that are used for transferring
data across the Internet.

3.6 Search Engine

Positioning
Potential customers find Web sites in many different
ways.
Some site visitors will be referred by a friend, others
by affiliates, some will see the sites URL in a print
advertisement or on television.
Many site visitors will be directed to the site by a
search engine.

Search Engine Positioning

A search engine helps people find things on the Web.
A search engine has three major parts
The first part is called a spider, a crawler, or a robot
The second part is called its index or database
The third part of the search engine is the search
utility

Search Engine Positioning

Marketers want to make sure that when a potential
customer enters search items that relate to their
products or services, their companies Web site URL
appears among the first 10 returned listings.
The combined art and science of having a particular
URL listed near the top of a search engine results is
called search engine positioning.
Search engine positioning is also called:

Search engine optimization

Search engine placement

Web Site Naming Issues

The legal and marketing aspects of Web site naming
can be complicated.
Obtaining identifiable names to use for branded
products on the Web is important.
URL brokers sell or auction domain names.
The Internet Corporation for Assigned Names and
Numbers (ICANN) maintains a list of accredited
domain name registrars.

3.7 Intelligent Agents

Some companies use intelligent software agents
(also called software robots or bots), which are
programs that search the Web and find items for
sale that meet a buyers specifications. In
addition to finding product item matches, some
software agents they find the lowest price for an
item.

3.8 Electronic Commerce Software

Basic functions of electronic commerce software
Advanced functions of electronic commerce
software
Electronic commerce software for small and midsized businesses
Electronic commerce software for medium-sized
to large businesses
Electronic commerce software for large
businesses that have an existing information
technology infrastructure

Basic Functions
All electronic commerce solutions must at least
provide:
A catalog display
Shopping cart capabilities
Transaction processing

Catalog Display
A static catalog is a simple list written in HTML that
appears on a Web page or series of Web pages.
A dynamic catalog stores the information about items in
a database.
Besides a catalog, many sites provide a search engine
that allows customers to enter descriptions to quickly
find an item.
Rule of e-commerce: Never stand in the way of a
customer who wants to buy something!

Catalog Display

Shopping Cart
Online forms were used for online shopping.
A new way of online shopping is by using shopping
carts.
SalesCart is one company that makes this type of
shopping cart software.

Forms-Based Method

Electronic Shopping Cart

Shopping Cart
The Web is a stateless system unable to remember
anything from one transmission or session to another.
It must distinguish one shopper from another.
One way to uniquely identify users and to store
information about their choices is to create and store
cookies.

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.

Application Servers
A program that performs a specific function, such as
creating invoices, is called an application program,
application software, or an application.
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 business.
These rules are called business logic.

Application Servers
Application server software is grouped into two types:
page-based and component-based.
A page-based application server returns pages
generated by scripts that include the rules for
presenting data on the Web page with the business
logic.
Common page-based systems include Macromedias
ColdFusion, Java Server Pages, Microsoft 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 Component Object
Model, and the Common Object Request Broker
Architecture.

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

Web Services
Web services are a self-contained, modular unit
of application logic that provides some
businesses functionality to other applications
through an Internet connection.
They use a specific set of standards known by
their acronyms:
SOAP
UDDI
WSDL

E-commerce Software for Small and

Mid-Sized Companies
One alternative to ISP hosting services are CSPs, or
ASPs, which provide a connection to the Internet just
as ISPs do.
They also provide application server software,
database management software, and electronic
commerce expertise.
ValueWeb is an example of a CSP.

E-commerce Software for Small and

Mid-Sized Companies
Basic CSPs offer free or low-cost e-commerce
software.
These are for sites with fewer than 50 for-sale items
and have relatively low transaction volumes.
Examples include BizLand.com and HyperMart.

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 hosts 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 hosts server.

Shared Mall-Style Hosting

Shared hosting sites provide online stores with good
services, good Web creation tools, and little or no
banner advertising clutter.
Web hosts in this group charge a monthly fee, a setup
fee, and may also charge a percentage of or fixed
amount for each customer transaction.
Mall-style hosts provide shopping cart software or the
ability to use another vendors shopping cart
software.

Shared Mall-Style Hosting

Mall-style hosting also offers transaction-processing
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
Stores.

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-hosting:

Low setup fee

No staff and capital costs
Free technical support

E-commerce Software for Medium-Sized

to Large Businesses
Medium-sized 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 stores catalog information.
Intershop Enfinity, WebSphere, and Commerce Server
2000 are examples of this type of software.

Intershop Enfinity

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

tools.

IBM 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, Linux, OS/400, Solaris,
Windows 2000, and Windows NT operating systems.

Commerce Server 2002

Microsoft created Commerce Server 2002.

Commerce Server 2002 provides tools for:
User profiling and management
Transaction processing
Product and service management
Target audience marketing

E-commerce Software for Large

Businesses
Enterprise-level commerce software is called ebusiness software.
E-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-mail
an HTTP server
an FTP server for upload and download capabilities
a database server

Enterprise Solutions for Large Firms

Examples of e-business systems:

IBMs WebSphere Commerce Business Edition
Oracles E-Business Suite
Broadvision One-To-One Commerce
Transact

Typical Large e-Business

System Architecture

Customer Relationship
Management Software
The goal of CRM is to understand each customers
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.

Supply Chain Management Software

SCM software helps companies to coordinate
planning and operations with their partner in the
industry supply chains of which they are members.
The 2 major firms that offer SCM software are:
i2 Technologies: includes components that
manage demand planning, supply planning, and
demand fulfillment
Manugistics: includes a constraint-based master
planning module that controls the other elements
of the system

Content Management Software

Content management software helps
companies control the large amounts of text,
graphics, and media files that have become a
key part of doing business.
The 3 leading companies that provide these
tools are:
Documentum
Vignette
webMethods

Knowledge Management Software

KM software helps manage knowledge, rather
than the documentary representations of that
knowledge.
It helps companies do 4 main things:

Collect and organize information

Share the information among users
Enhance the ability of users to collaborate
Preserve the knowledge gained through the
use of information so that future users benefit

3.9 Web Hosting Choices

When making Web server hosting decisions, a
company should ask whether the hardware, or
platform and software combination, can be upgraded
when the traffic on its site increases.
Using a service providers shared or dedicated
hosting services instead of building an in-house
server or using a co-location service means that the
staffing burden shifts from the company to the Web
host.

Building the System: In-House versus

Outsourcing
Outsourcing: hiring an outside vendor to provide services
involved in building the site
The build your own versus outsourcing decision:
Build your own requires team with diverse skill set;
choice of software tools; both risks and possible
benefits
Host your own versus outsourcing
Hosting: hosting company is responsible for ensuring
site is accessible 24/7, for monthly fee
Co-location: firm purchases or leases a Web server
(with control over its operation), but server is located
in at vendors physical facility

Choices in Building and Hosting

3.10 Cost Analysis

Many changes in the cost of hardware are downward.

The increasing sophistication of software provides an
ever-increasing demand for newer hardware.
The project budget must include the cost of hiring,
training, and personnel.

Measuring Cost Objectives

Based on data collected in separate recent surveys,

International Data Corporation and the GartnerGroup
both estimated that the cost for a large company to
build and implement an adequate entry-level
electronic commerce site was about $1 million.
About 79% of that cost was labor related
10% was the cost of software
11% was the cost of hardware

Measuring Cost Objectives

Recent estimates of the cost to build small Web sites

have continued to increase as more companies
establish themselves on the Web.
Expensive features, such as shopping carts and
search engines, have become standard on even the
most basic sites.
Analysts have estimated the minimum dollar amount
needed to open an entry level electronic commerce
Web site at $150,000.

Measuring Cost Objectives

Measuring Cost Objectives

The McKinsey study estimated costs for two types of
magazine sites: a full portal site that would serve as a
destination in itself and a more limited magazine
companion site.
The full portal site cost estimate was $2.4 million to
build and $4.3 million per year to maintain, with a staff
of 35 people.
The companion site cost estimate was $150,000 to
build and $270,000 per year to maintain, with a staff of
two people.

Measuring Cost Objectives

Kmarts Web store, Blue-Light.com, cost more than

$140 million to create.
The site is certainly well-designed and highly
functional, but the typical visitor would never guess
how much this site cost.

Comparing Benefits to Costs

If the benefits exceed the cost of a project by a

comfortable margin, the company invests in the
project.
Companies should evaluate each element of their
electronic commerce strategies using this cost/benefit
approach.
Managers often use return on investment (ROI) to
evaluate any capital investment.

Comparing Benefits to Costs

Newspaper Web sites are a good example of this
desire to establish a foothold in the online market
space.
Profitable electronic commerce initiatives in the
newspaper business, such as Gannets USA Today
and The Wall Street Journals WSJ.com sites, are few.