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RV College world
of
Engineerin Department of MCA
g
E-Commerce
Unit-2
Building an E-Commerce
presence 18MCA22

Dr.Usha J Mr.Vishal C
Professor Asst.Prof

Date Department of MCA, RVCE 1/8

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Building an E-Commerce presence

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The Visioning Process(What’s the
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Idea?)

The vision includes not just a statement of mission, but also

identification of the target audience, characterization of the market
space, a strategic analysis, an Internet marketing matrix, and a
development timeline
It starts with a dream of what’s possible, and concludes with a timeline
and preliminary budget for development of the Web presence.
Example:For Amazon, it’s to become the largest marketplace on
earth.
For Facebook, it’s to make the world more open and connected.
For Google, it’s to organize the world’s information and make it
universally accessible and useful.

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Business and Revenue
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Model(Where’s the Money)

 Develop a preliminarly idea of your business and revenue models. You

don’t need detailed revenue and cost projections at this point. Instead, you
need a general idea of how your business will generate revenues.

The basic revenue model alternatives are advertising, subscriptions,
transaction fees, sales, and affiliate revenue. There’s no reason to adopt a
single business or revenue model, and in fact, many firms have multiple
models.

Example:the New York Times digital business model is to both sell
subscriptions and sell ad space. In addition, they sell unique photographs
and gifts.

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Target Audience(Who and Where is)

 Without a clear understanding of your target audience, you will not have a
successful Web presence.

Your target audience can be described in a number of ways:demographics,
behavior patterns (lifestyle), current consumption patterns (online vs. offline
purchasing), digital usage patterns, content creation preferences
(blogs,social networks, sites like Pinterest), and buyer personas (profiles of
your typical customer).

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Characterize the marketplace

 Enter into a declining market filled with strong competitors, and you will
multiply your chances of failure.

Enter into a market that is emerging, growing, and has few competitors,
and you stand a better chance.

Enter a market where there are no players, and you will either be rewarded
handsomely with a profitable monopoly on a successful product

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The Contents

 The content is why your customers visit your site and either purchase
things or look at ads that generate revenue for you.

Therefore, the content is the single most important foundation for your
revenue and ultimate success.

There are generally two kinds of content: static and dynamic.

Static content is text and images that do not frequently change, such as
product descriptions, photos,or text that you create to share with your
visitors.

Dynamic content is content that changes regularly, say, daily or hourly.

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Swot Analysis

 A SWOT analysis is a simple but powerful method for strategizing about

your business and understanding where you should focus your efforts.

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Understanding SWOT

 Strengths: Anything the business is currently good at, or that which

could be described as its “strength”.

Weaknesses: Anything the business currently struggles with.
 Opportunities: Current opportunities in the market that the business
could exploit with its existing resources or skills.

Threats: Market forces, such as a competitor or external factors (such
as a change in local laws) that could threaten the business.

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To run a successful SWOT analysis

 Time: Depending on the size of your business, it might take anywhere from
a few days to several months to do a complete SWOT analysis. Keep this
in mind before you start the analysis.

Data (subjective and objective): A competent SWOT analysis requires lots
of data. You’ll need objective data like traffic figures, inventory totals,
financial details, etc. as well as subjective data like customer interviews,
internal audits, etc.
 Benchmarks: Though not necessary, it’s good to have some industry
benchmarks to audit your performance. After all, you can’t claim that traffic
generation is your “strength” if you can’t meet industry standards.

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SWOT ANALYSIS

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Develop an E-commerce Presence
Map

E-commerce has moved from being a PC-centric activity on the

Web to a mobile and tablet-based activity as well. While 80% or
more of eommerce today is conducted using PCs, increasingly
smartphones and tablets will be used for purchasing.

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Building an E-commerce Site:

A Systematic Approach

Most important management
challenges:
 Developing a clear understanding of
business objectives
 Knowing how to choose the right
technology to achieve those objectives

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Pieces of the Site-Building Puzzle


Most important management
challenges:
 Developing a clear understanding of
business objectives
 Knowing how to choose the right
technology to achieve those objectives

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The Systems Development Life

Cycle
Methodology for understanding business
objectives of a system and designing an
appropriate solution
Five major steps:
Systems analysis/planning
Systems design
Building the system
Testing

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Web Site Systems Development Life Cycle

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System Analysis/Planning

Business objectives:
List of capabilities you want your site to have
System functionalities:
List of information system capabilities needed to achieve
business objectives
Information requirements:
Information elements the system must produce in order to
achieve business objectives

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Systems Design:
Hardware and Software Platforms

System design specification:

Description of main components of a system and their
relationship to one another
Two components of system design:
Logical design
Data flow diagrams, processing functions, databases
Physical design
Specifies actual physical, software components, models, and so on

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Logical Design for a Simple Web Site

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Physical Design for a Simple Web Site

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Build/Host Your Own vs. Outsourcing

Outsourcing: Hiring vendors to provide services involved

in building site
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 monthly fee
Co-location: Firm purchases or leases Web server (with control over its operation), but
server is located at vendor’s facility

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Choices in Building and Hosting

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Testing, Implementation, and

Maintenance

Testing
Unit testing
System testing
Acceptance testing
Implementation and maintenance:
Maintenance is ongoing
Maintenance costs: Similar to development costs
Benchmarking

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The Hardware Platform

The hardware platform refers to all the underlying

computing equipment that the system uses to
achieve its e-commerce functionality.
 The Demand Side
Right-Sizing Your Hardware Platform

Demand on a Web site is fairly complex and depends
primarily on the type of site you are operating

The number of simultaneous users in peak periods,
the nature of customer requests

The type of content

The required security

The speed of legacy applications that

may be needed to supply data to the Web pages
 The Supply Side
Scalability refers to the ability of a site to increase in size as demand
warrants.
Three steps you can take to meet the demands for service at your site

Scale hardware vertically-(refers to increasing the processing

power of individual components)

Scale hardware horizontally- (refers to employing multiple
Computers to share the workload and increase the “footprint” of
the installation)

Improve the processing architecture of the site (scale your site
vertically by upgrading the servers from a single processor to
multiple processors)
 Implementation and Maintenance
Continual checking, testing, and repair. Systems
maintenance is vital, but sometimes not budgeted for. In
general, the annual system maintenance cost will roughly
parallel the development cost.
 TOOLS FOR WEB SITE
OPTIMIZATION
Metatags, titles, page contents:
Search engines “crawl” your site and identify keywords as well as
title pages and then index them for use in search arguments
Identify market niches: specific groups who are intensely
interested in period jewelry and closer to purchasing.
Offer expertise:White papers, industry analyses, FAQ pages,
guides, and histories are excellent ways to build confidence on
the part of users
 Cont...
Get linked up: Encourage other sites to link to your site; build a
blog that attracts people and who will share your URL with others and
post links in the process.
Buy ads: Complement your natural search optimization efforts with paid
search engine keywords and ads. Choose your keywords and
purchase direct exposure on Web pages.
Local e-commerce: Developing a national market can take a long time.
 Developing a Mobile Web Site and
Building Mobile Application
A mobile Web site is a version of a regular Web
site that is scaled down in content and
navigation so that users can find what they want
and move quickly to a decision or purchase.
A new trend in the development of mobile Web
sites is the use of responsive Web design
tools and design techniques
 Cont...
A mobile Web app is an application built to run
on the mobile Web browser built into a
smartphone or tablet computer.
A native app is an application designed
specifically to operate using the mobile device’s
hardware and operating system.
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Thank You