SCCA-MJMC-CD-LMAG ✓ Structure
E-Commerce ❖ Competitors
❖ Suppliers
Chapter 3: Building an E-Commerce Presence ❖ Substitute products
Where is the content coming from?
3.1 Imagine your E-commerce Presence ❖ Static or dynamic?
What's the idea? (The visioning process)
❖ Mission-Vision Statement Where's the content coming from?
❖ Target Audience Know yourself: Conduct a SWOT Analysis
❖ Intended Market Space
❖ Strategic Analysis
❖ Marketing Matrix
❖ Development Timeline and Preliminary
Budget
Where’s the Money: Business and Revenue
Model
Business Model Revenue Model
✓ Content Portal ✓ Advertising
✓ E-taile Provider ✓ Subscriptions
✓ Transaction Broker ✓ Transaction fees
✓ Market Creator ✓ Sales
✓ Service Provider ✓ Affiliate Revenues
✓ Community provider
(Social network)
Develop an E-Commerce Map
Who and where is the Target Audience?
Describing your audience
❖ Demographics
✓ Age, gender, income, location
❖ Behavior patterns (lifestyle)
❖ Consumption patterns (purchasing habits)
❖ Digital usage patterns
❖ Content creation patterns (blogs,
Facebook)
❖ Buyer personas
What is the Ballpark? Characterize the
Marketplace
Characterize the marketplace
❖ Demographics
✓ Size, growth, changes
Develop a Timeline: Milestones
3.2 Building an E-commerce Presence
Most important management challenges:
❖ Developing a clear understanding of
business objectives.
❖ Knowing how to choose the right technology
to achieve those objectives.
How much will this Cost?
The System Development Life Cycle
1. Systems Analysis/Planning:
Identify Business Objectives, System
Main areas where you will need to make Functionality, and Information Requirements
decisions: ❖ “What do we want this e-commerce
❖ Human resources and organizational site or app to do with our business?”
capabilities ➢ Creating team with skillset ✓ Business objectives – capabilities you want
needed to build and manage a successful your site to have
site ✓ System functionalities – types of
❖ Hardware/software information systems capabilities you will
❖ Telecommunications need to achieve your business objective
❖ Site design ✓ Information requirements – the information
elements that the system must produce in
The System Development Life Cycle (SDLC) order to achieve the business objectives
✓ is a methodology for understanding the
business objectives of any system and
designing an appropriate solution.
3. Building the System: In-house Versus
Outsourcing
✓ Outsourcing: Hiring vendors to provide
services involved in building sit
✓ Build own vs outsourcing: Build your own
requires team with diverse skill set; choice of
software tools; both risks and possible
benefits
✓ Host own vs outsourcing.
❖ Hosting: Hosting company responsible
for ensuring site is accessible 24/7, for
2. System Design: monthly fee
❖ Hardware and Software platforms ❖ Co-location: Firm purchases or leases
✓ System design specification – a web server (with control over its
description of the main components in the operation), but server is located at
system and their relationship to one another vendor's facility
✓ Logical design – includes a data flow
diagram that describes the flow of
information at your e-commerce site
✓ Physical design – translates the logical
design into physical components (specific
model of server to be purchased; the
software to be used, etc.)
4. Testing
✓ Unit testing
✓ System testing
✓ Acceptance testing
✓ A/B testing (split testing)
✓ Multivariate testing
5. Implementation, Maintenance, and
Optimization
✓ Systems break down unpredictably
✓ Maintenance is ongoing
✓ Maintenance costs: Similar to development
costs
- A $40K e-commerce site may require $40K
annually to upkeep
✓ Benchmarking
