Hello, integrated-ga!
I have been at this for most of two full days and have tried to
provide some general answers to most of your questions. Your question
actually involves over fifteen individual components (including all
the barriers you mentioned). Each of these issues should really be
tackled in separate questions if you are looking for in-depth
information for each component.
It has been a difficult task to provide a cursory overview of each
aspect of your question and synthesize the information into a workable
answer. I hope I have been able to provide some insight and answers
without losing you in the muddle!
If you need more detail particular components of this question, you
might want to consider posting additional questions about these
individual issues so a researcher can explore them in more depth. (For
example..part 5 of your question asked for a detailed discussion of
security measures. I have provided reference to a question I answered
previously on that specific issue, which, for the price, allowed me to
focus on that one topic and explore it in depth)
***********************************
1.(A) Describe the term e-commerce
***********************************
Some Definitions:
"eCommerce (electronic commerce) is the buying and selling of goods
and services on the Internet, especially the World Wide Web. In
practice, this term and a newer term, e-business, are often used
interchangeably."
http://www.mariosalexandrou.com/glossary/ecommerce.asp
=
"An ecommerce definition? Selling online, with or through a website,
or by means of email. Ecommerce or electronic commerce is usually
subdivided into B2B (business to business: wholesale), B2C (business
to customer: retail) and C2C (customer to customer: auctions and
information portals)."
From "eCommerce Definition." Ecommerce Digest.
http://www.ecommerce-digest.com/ecommerce-definition.html
*******************************************************************************
1.(B) Discuss the advantages and disadvantages that an e-business
architecture may possess over its alternative (corporate) business
set-up.
*******************************************************************************
This is a difficult question to answer due to the very specific nature
of individual ebusinesses. Therefore, it can only be answered in a
very general sense.
From the Dr. Ecommerce website:
http://europa.eu.int/ISPO/ecommerce/drecommerce/answers/000256.html
Advantages:
* ability to reach a wider market
* ability to source products from a wider supplier-base
* ability to automate and cut costs in repetitive processes (for example,
automatically generating invoices based on forms filled out on the Internet)
* ability to give the impression you are a bigger business than you really are
* ability to respond to customer queries quickly and cheaply (this is
particularly true for companies based in developing countries and selling
internationally)
Disadvantages:
* expense of setting up or purchasing e-commerce systems
* finding staff with appropriate Internet experience
* risk of fraud (although it is consumers who are most afraid of fraud on the
Internet, it is in fact business that is most often the victim)
* inability to grow quickly if business is very successful
* marketing expense (there are millions of web sites out there - how do you
ensure yours is visited?)
To these, I would add:
Potential for website problems
Lack of good customer service
Loss of potential customers who have no internet access
==
Please read the following two papers that center on the issues of going online:
"Achieving eBusiness Success: It's not the Technology, It's the
Strategy. The Business Network. (2003)
http://www.businessnetwork.com/wp.pdf
"Adopting an eBusiness solution however, has rapidly become more than
a matter of opportunity. The dual pressures of competition and
customer demand have created a new mandate: businesses must get online
to survive. Manufacturers, distributors, resellers and VARs are
quickly realizing that they need an eBusiness solution thatprovides an
acceptable level of service to their customers......eBusiness is no
longer an option - it's a survival necessity."
=
"SME Business Case Studies - VLM." Enterprise Ireland.
http://www.enterprise-ireland.com/ebusiness/Case_studies/VLM/vlm.pdf
This case study profiles a printing company that took their business
online, ultimately making the customer experience more efficient.
Customers could accomplish all of their printing needs and customize
orders online, without any personal interaction with the company.
However, there were a certain number of customers that did not have
internet access, so they were put off by the new online offering.
* The paper also goes through the many issues involved in setting up
the online business.
*******************************************************************************
2. Provide and discuss facts and figures supporting the idea that
eCommerce is the trade of the future.
*******************************************************************************
B2C Revenue Predictions
-----------------------
"Numerous research firms are projecting that during the next decade,
U.S.-based business-to-consumer (B2C) e-commerce will grow from some
$20 billion to several hundred billion dollars. Research firm
eMarketer projects that B2C e-commerce worldwide will jump from about
$5 billion in 1997 to $100 billion in 2002."
Read "Digital TV: The Future of E-Commerce (Part IV)," by Seven
Caswell. E-Commerce News. (March 23, 2000)
http://www.ecommercetimes.com/perl/story/2802.html
B2B and B2C Revenue Predictions
-------------------------------
"Despite the adverse publicity, and the spectacular failures,
ecommerce is here to stay. At the last count, some 56% of B2C and 70%
of B2B ecommerce operations in the US were profitable, * and online
revenues may reach $218 billion by 2007."
Read "Defining eCommerce." Ecommerce Digest.
http://www.ecommerce-digest.com/ecommerce-definition.html
=
ECommerce - The Industrial Revolution of the 21st Century
---------------------------------------------------------
"According to a new study from the Center for Research in Electronic
Commerce, eCommerce will become the industrial revolution of the 21st
Century. The Internet economy continues to grow robustly, with both
new and established companies reaping profits online. eBusiness still
has huge untapped potential, according to Anitesh Barua, associate
professor of information systems at the center. He believes that its
effect on our industrial economy will be as significant as the shift
from the agricultural economy of the 17th Century."
"For example, large companies that implemented new Internet
technologies -- such as improved supply-chain processes - saw
improvements of * 13 percent to 21 percent in financial performance
measures. * For multibillion-dollar companies, that's a huge savings
that can improve the bottom line, as well as the economy as a whole."
"In the study, small businesses with annual revenues of less than $10
million saw average improvements of 40 percent to 50 percent in
financial performance."
"The U.S. Department of Commerce has also released statistics, which
document the increasing impact of eBusiness on our lives. The online
sales figures for the third quarter indicate that total online retail
sales reached nearly $6.4 billion for the quarter ended Sept. 30.
That's a 15.3 percent increase from the previous quarter, and the
biggest increase since the department started tracking eCommerce
numbers a year ago."
"The Future of ECommerce," by Riyaj Shaik. (Read all four pages)
http://www.iboost.com/manage/business/trends/20024.htm
*****************************************************************************
3. Discuss different barriers that may exist in the pathway for
developing a successful e-commerce business. Design and development
issues, Security, legal, ethical & moral issues. Physical boundaries,
Conflicts, traditional outlets vs. electronic outlets. Financial
resources, manpower & skills.
*****************************************************************************
I have provided short descriptions of the barriers you mentioned, and
the methods available to overcome these barriers are discussed in the
answer to Question 4.
Design and Development
----------------------
A poorly designed website will turn customers away!
"No matter how you measure success, the most important thing to
remember is that you have to work to be successful online. A website
needs to present information in a professional and easy to understand
manner, it needs to be continuously updated, marketed and promoted and
it needs to make the customer feel safe and secure in their business
transactions with you. In fact by understanding a few key points you
can dramatically increase the chances of your website achieving
success."
"The first thing that you should do is to determine what makes a
website successful for you and your stakeholders. Do you want a
website that promotes your company and gives your customers all manner
of information about you and your products. Or, a website that
generates business opportunities and genuine business enquiries. Or, a
business that directly markets your products and services thus
generating sales directly online 24/7/365. It is also worth noting
that potential customers may find their way to your premises by more
conventional means but may have first been initiated by visiting your
website."
"Does Your Website Work For You OR Are You Working For Your Website?,"
by Steve Cartwright. http://www.cyber-aspect.com/features/fa_043.htm
Security
---------
Security of information is probably the primary concern with
ecommerce. Whenever transactions are being processed between a vendor
and a customer, private information exchanges hands. One of the major
worries cited by ecommerce customers is the privacy of their personal
and financial information. Therefore, the implementation of security
measures by ecommerce vendors is a top priority for maintaining a
viable business. In fact, security issues have served as a major
thrust in initiating the development of businesses that center solely
on ecommerce security solutions.
"After the terrorist attacks of September 11th, another ITAA survey in
December, 2000 found that an overwhelming 70% of respondents were
concerned about cyber security and 74% worried that their personal
information could be stolen online (Burton, 2001). According to ITAA
President Harris N. Miller, the terrorist attacks have created
uncertainty and anxiety over internet security."
Read "Internet Security Concerns Affect E-Commerce and Small
Businesses," by Edana Sarty. Kauffman Center for Entrepreneurial
Leadership (Last updated 02/21/2003)
http://www.celcee.edu/publications/digest/Dig02-02.html
Legal Issues
------------
Be mindful that any transactions on your website are considered a
"contract". Therefore, all terms must be fulfilled.
"From the legal perspective your web site is considered an invitation
to make a contract. When a customer fills her shopping cart, checks
out, completes the form and hits the click-to-purchase button, she is
sending you a contract. When you acknowledge the order, you have
confirmed the contract. When you have delivered the product, you have
concluded the contract.
From "Learn on-line - Your web-site is an invitation to contract." JPB
Creative Co, Ltd (2001)
http://www.jpb.com/ecommerce/tutorials/000011.html
For concerns about legal issues and global ecommerce, read:
"The Environment of Electronic Commerce: International electronic
commerce." Intro to Electronic Commerce Online.
http://staff.niacc.edu/nthomes/econline/planning/
=
Ethical and Moral Issues
-------------------------
The same demand to conduct business in an ethical and moral manner
applies to ecommerce just as it does to an offline business. Just
because you cannot "see" your customer does not mean you have an
invitation to act in an unscrupulous manner.
See what the online company, 1SeoAvenue.com, says about their ethical
and moral responsibility to conduct business:
Our Code of Ethics
"As members of our chosen Profession, we recognize our serious moral
and ethical obligations to our Clients, fellow SEO Professionals,
Internet Search Engines, Directories and the Public and the Internet
Community. We are dedicated to exhibit the highest standards of
honesty and integrity and pledge to conduct ourselves responsibly,
ethically, and lawfully to enhance the honour, reputation, and value
of our Company and our Profession."
http://www.1seoavenue.com/?About+Us
Physical Boundaries
--------------------
The Internet and eCommerce have drastically changed the way we
businesses can operate. There are no longer physical boundaries that
separate markets from consumers. However, unless a company makes the
attempt to reach the global marketplace by designing multicultural
websites, their business will likely be restricted by language,
currency and trade issues.
Conflicts, traditional outlets vs. electronic outlets
-----------------------------------------------------
"The ability to adapt existing analog business models to the Web is
many times difficult and tumultuous because they can interfere and
compete with existing businesses methods. Manufacturers provide a
great example of the potential conflicts that can occur between an
existing channel of distribution using distributors and dealers or a
direct sales force and providing order taking over the Internet. In
these instances, distributors, dealers and direct sales forces feel
threatened by the new Internet based implementation and justifiably
so. When existing businesses develop an e-commerce strategy it is 70%
about adopting new business models and corporate cultural change and
only 30% about technology."
Read "The Difference Between E-Commerce and E-Business," by Brian Pitre.
http://www.dockside.net/articles/articles-dec1999.htm
Financial Resources, Manpower and Skills
-----------------------------------------
Training employees to adapt to online service is certainly a financial
commitment, but it is worth the investment if a company plans to
expand to the internet. Customer service is integral to a good online
company (as outlined in the section below)
******************************************************************************
4. In the light of discussion done for above question, examine and
evaluate the incentives and initiatives that are available to overcome
the barriers to trading via e-commerce.
*******************************************************************************
Companies can implement initiatives to overcome the barriers to
ecommerce and make their online business profitable and trustworthy.
The following article excerpts shed light on different issues that
should be considered.
The following Incentives are excerpted from the paper, "Economic and
Financial Impacts of Ecommercing," by Hussein Abdoh Tabrizi.
http://216.239.41.104/search?q=cache:qwtlfhVaSAIJ:www.abdoh.net/dbase/upload/ecommerce.ppt+ecommerce+AND+organizational+change&hl=en&ie=UTF-8
(If this link does not work, please cut and paste the title into your
search engine. The PPT file did not work)
Business incentives for ecommerce
---------------------------------
* Product promotion and customization through the direct connection to
consumers
* Developing and exploiting new sales channels (products, information,
advertising and transactions)
* Reduced costs of business transactions through a public shared infrastructure
* Reducing time to market for certain types of products
* Improving customer relationships with intelligent systems for service and
support
* Improving marketing and targeted advertising through the collection of
detailed customer information
* New corporate branding and image creation
* Using the net for R&D and product development
* Developing of new business models based on characteristics of the new
marketplace
==
The following initiatives highlighted in an older Canadian paper are
still applicable today.
From "OVERCOMING BARRIERS TO ELECTRONIC COMMERCE." Information
Technology Association of Ontario (November 1997)
http://www.itac.ca/client/ITAC/ITAC_UW_MainEngine.nsf/b6527beaf7c5cde9852566c100709f0c/fa8b7a99a62eac9c852566f0007a1bfb!OpenDocument
Predictable legal framework:
----------------------------
* "Electronic commerce can flourish only if there is a predictable
legal framework for electronic transactions."
Digital Signatures for Security:
---------------------------------
* "Digital signatures are at the core of trusted electronic commerce
in business to business transactions, as well as business to consumer
trade."
Provide for Information Security and Encryption:
-------------------------------------------------
* "The availability of effective technical tools for enhancing
information system security, such as encryption and cryptographic key
management technologies, is a pivotal prerequisite for acceptance and
growth of electronic commerce. Cooperation among countries, based on
the OECD Guidelines on Cryptography Policy, is essential to ensure
that cryptography policies do not cause obstacles to international
trade."
Privacy
--------
Legislation should be enacted which "guarantees rights to reasonable
levels of personal data protection and business information security,
and to avenues of legal redress."
Access
-------
Access to the internet and electronic commerce should be made readily
available and affordable to the general public.
Skills Training
----------------
"As a society we must ensure that a sufficient number of skilled
professionals are available to, for example, design and manage
electronic-commerce sites and systems. Among the mechanisms for
achieving this are a rapid introduction of innovative information
technology-based learning tools into Canadian homes, businesses, and
classrooms, and reinforcement of a culture of life-long learning."
==
Overcoming barriers to global ecommerce issues can involve the following:
---------------------------------------------------------------------------
* Language - Most ecommerce customers prefer to do business in their native
language
* Measurement differences (metric vs. imperial, for example) should be
tailored to the country site
* Time and date should be specified to the correct time zone for customer
support
* Use correct phone prefixes and country codes for customer access
(I would also add considerations for local currency to this list)
Read "Overcoming International Barriers Related To E-Commerce," by
Cosmin Smeu. ecommerce Trends.
http://ecommercetrends.com/ecommercetrends-56-20021031Overcoming-International-Barriers-related-to-e-Commerce.html
Have the good sense to design an excellent website from the beginning!
------------------------------------------------------------------------
Please read the following article which highlights the importance of
having your own domain Name, company and staff email addresses,
quality website hosting, excellent website design, web architecture
that allows for ease of navigation, customer interaction, the right
content, search engine optimization, and ongoing marketing efforts.
Read "Does Your Website Work For You OR Are You Working For Your
Website?" by Steve Cartwright.
http://www.cyber-aspect.com/features/fa_043.htm
Providing good customer service is key!
---------------------------------------
"According to Philippa Gamse, e-strategy consultant and president of
CyberSpeaker, customer service is the name of the game. "You really
have to think about who your markets are and how to target them," she
says. "People often don't buy based on price. They're more interested
in customer service and its components: product information, privacy,
and security. You have to understand what's going on in their minds."
" January 2000 report issued by Jupiter Communications found that 72
percent of online customers say customer service is a critical
component of their satisfaction with a merchant, yet only 41 percent
could say they experienced satisfactory customer service. Dot coms are
obviously not yet known for their top-notch customer service, but
those who do put the time and effort into service are more likely to
become the leaders in their field. More importantly, they are the ones
most likely to attract and retain valuable customers."
Read further....
"E-COMMERCE, AT YOUR SERVICE," by Amy C. Rea. WriteEdge
http://www.writeedge.com/articles/AtYourService.asp
***************************************************************************
5. Discuss in detail the security measures that must be taken into
consideration while setting up an e-commerce business with online
shopping facility for customers.
****************************************************************************
Please see my previous answer to a question about ecommerce security:
http://www.answers.google.com/answers/threadview?id=302961
I will simply put some links here, but you can read the answer in full.
The Canadian Revenue Service highlights a range of important ecommerce
security concerns and the steps that can be implemented to address
them. Encryption, Digital Signatures, Digital Certificates, Passwords,
Virus Protection and Firewalls are some of the measures that can
increase security for both the vendor and the customer.
(See the Canadian Revenue Service website) at:
http://www.ccra-adrc.gc.ca/notices/security_concerns-e.html
Encryption
----------
"Encryption uses a mathematical formula and an encryption key to
scramble information so that an unauthorized person cannot understand
the information. The scrambled information is decoded - or converted
back - into the original format using the same mathematical formula
and a decryption key so an authorized person can understand it. While
the information is encrypted, it cannot be viewed."
http://www.ccra-adrc.gc.ca/notices/security_tools-e.html#P203_20952
Digital Certificates and Digital Signatures
---------------------------------------------
"A digital certificate is an electronic credential that verifies the
identity of its holder....."A digital signature is a type of
electronic identification that can confirm the identity of the sender
of a message, whether the message
is encrypted or not.
http://www.ccra-adrc.gc.ca/notices/security_tools-e.html#P218_25059
Firewalls
----------
"A firewall acts as a barrier between internal and external computers
in a network, controlling the flow of information between the two.
When a computer outside the firewall tries to communicate with a
computer inside, it must first communicate with the firewall, which
drops, allows or denies requests before it passes them to the
destination computer. This process protects the destination computer
from unauthorized access."
http://www.ccra-adrc.gc.ca/notices/security_tools-e.html#P56_9882
Anti-Virus Software
-------------------
"Anti-virus software scans your computer and email messages for
viruses. You have to regularly update your anti-virus software to be
able to detect new viruses. Your anti-virus software helps protect the
data on your computer software and your operating system."
http://www.ccra-adrc.gc.ca/notices/security_tools-e.html#P52_9303
*******************************************************************************
6. Formulate a strategic model specifying various stages involved to
set up an e-commerce website. Take into account the influential
factors such as cost, time, and various resources.
*******************************************************************************
I cannot formulate your business model for you since you are the
person who knows all the intricacies of your company. However, the
following documents should provide some answers to the type of model
and the steps involved in setting up an ecommerce application.
A. In terms of placing a business on the internet, there is not a
tremendous amount of difference in the business decisions aside from
some technological decisions....how to implement and advertise your
online site, how to organize customer relationship management, and how
to perform secure transactions.
"The reality of the situation is that eCommerce is nothing more than
an eBusiness model for optimizing and extending existing business
processes. In fact, if it were not for the technology (as the first
group have demonstrated so successfully), there is very little new or
conceptually challenging about the Internet. The Internet is nothing
more than an amplified business tool that should be used as the
world's most sophisticated telephone."
Read "Achieving eBusiness Success: It's not the Technology, It's the
Strategy. The Business Network. (2003)
http://www.businessnetwork.com/wp.pdf
==
B. If your website will be selling Software and Hardware on a small
scale, your model will be along the line of a Business to Consumer
Merchant Model:
The merchant Model
-------------------
"A merchant is a wholesaler or retailer of goods and services. The
merchant provides a website with product information and an online
ordering mechanism. Users select the products they want to buy and
place an order. The product price can be fixed or negotiable. The
merchant makes his money the same way as traditional
"brick-and-mortar" shops: through the profit margin in the product
price. This model is mainly suited for physical goods and services,
such as books, computers or a pizza delivery service. The merchant can
directly reach end users and sell to them without needing wholesalers
or retailers."
Read "E-commerce business models." IUS Mentis. (Dec. 2001)
http://www.iusmentis.com/business/ecommerce/businessmodels/
C. The following document is extremely comprehensive. It not only
includes the various aspects which must be considered when developing
an online business model but also touches on many of the other aspects
of your multi-part question.
Some Excerpts:
The Merchandise Sales Model
----------------------------
"This is organized around the sales of goods or services in exchange
for money or other value given at the time of the transaction.
Examples are virtual storefronts and online catalogs. This model is
probably the most common type of on-line commerce today because of its
ease of use and familiarity to customers."
**
Issues to consider in setting up an Online Business Model include the following:
Revenue Balance
---------------
This includes revenue projections for the following years, thereby
providing some insight into the financial potential of an online
business.
Customer Loyalty
----------------
Includes strategies to build and maintain relationships with
customers, and the costs involved in marketing to potential customers.
Lock-In
-------
How will you get your customers to stay? What strategies can you
employ to make it hard for them to switch from your company to
another?
Partnerships
------------
Should new types of partnerships be developed with companies that are
both "synergistic" as well as those that are competitors?
Cost of Business
----------------
Considerations revolve around whether business costs can be lowered by
using the web, including the costs associated with Administration,
Sales, Customer Support, Advertising, Accounting, Human Resources and
Suppliers.
Organizational Models
---------------------
Contemplate ways in which the company will have to change the
organizational structure to accommodate an online business. New job
functions and workflow processes will need to be considered.
Customer Value
--------------
Consider the types of digital service that can add value for your
customers, partners and suppliers. Keep in mind new costs will be
generated to support the additional processes and work functions
involved in developing new services.
Some Cautionary Advice
-----------------------
Choose a high-quality hosting service that can deal with software,
hardware and security issues.
*** PLEASE SEE THE BUSINESS MODEL DEVELOPMENT DIAGRAM ***
From "ECommerce Business Models," by Brian L. Dos Santos. University of Louisville.
http://dossantos.cbpa.louisville.edu/courses/ecommerce/Records/Secure/EcommBizModels.pdf
D. Other Considerations for the Ecommerce Site
==============================================
A company should give a lot of thought to design of the website,
hosting of the website, what products to sell, shopping cart
implementation, payment policies and shipping options, security
measures and finding and training customer service personnel. The site
construction will likely be contracted out to a web design company
specializing in ecommerce implementation.
*******************************************************************************
6. (b) Considering this website is to be designed for a small-scale
'software & hardware' selling organisation, discuss the impact on
existing organisational culture.
*******************************************************************************
Whenever an offline company decides to create an online presence, the
organizational structure will undergo some changes. An ecommerce site
is virtual. Thus, many of the key players from suppliers up to company
managers do not have a personal, "in office relationship." The entire
culture of the business entity is different.
"Products can be delivered through a digital web of business
relationships with producers, financiers, distributors, consumers.
Producers, suppliers, warehouses, managers, administrator,
subcontractors are all linked through an extranet. Many functions can
be easily outsourced (accounting, personnel management, training,
public relations)."
From "Economic and Financial Impacts of Ecommercing," by Hussein Abdoh Tabrizi
http://216.239.41.104/search?q=cache:qwtlfhVaSAIJ:www.abdoh.net/dbase/upload/ecommerce.ppt+ecommerce+AND+organizational+change&hl=en&ie=UTF-8
==
The changeover to ecommerce requires some specific organizational strategies.
The following excerpts are from "A New Strategy for Crossing the Chasm
in Internet Commerce," by Randall Whiting, President and CEO of
CommerceNet.
http://www.businessforum.com/ecm01.html
(Please refer to article for complete coverage of each of these areas)
1. Executive empowerment - "The first step is to get executive
management involved and supportive of the project."
2. "Create a strategic Internet Commerce organization. - Once you have
gotten executive management on board, establish a strategic Internet
commerce organization. This organization should be made up of a small
staff of senior change agents."
3. "Stay independent from any specific functional area. - A source of
many conflicts within corporations comes when one functional area
gains power over another."
4. "Separate the strategic team from any and all production efforts. -
Production services have specific requirements and can significantly
hinder the strategic development of eCommerce."
5. "Participate in collaborative efforts across your industry and
other industries. - The strategic team needs to be both externally
focused as a business development function that works within the
industry, and internally focused when working on new business models
and approaches."
6. "Focus on testing new business models and approaches - not technology."
7. "Take the model to the market. - Often new models and approaches
require changes not only in your own business, but to the entire
marketplace. To really make an impact, Internet Commerce involves
changing not just your company, but changing the way customers,
partners, suppliers and maybe even your competitors do business."
8. "Drive technology innovation. - Drive innovation in the market
through new business models and approaches."
*******************************************************************************
7.(A) Evaluate the feasibility of outsourcing services (software &
hardware) while setting up an E-Commerce website.
*******************************************************************************
Outsourcing the development of the Software and Hardware necessary for
developing an ecommerce platform can be extremely beneficial if the
company has the channels to do so. It may actually be a necessity if
the company does not have it's own technical personnel. Outsourcing
can also provide significant financial savings to the company.
=
See the following excerpt from the Outsourcing Central Website:
http://www.e-zest.net/Outsourcing_Central/Software_outsourcing.htm
Outsourcing Software
====================
"Software development outsourcing can be defined as "Contracting (or
subcontracting) with an external organization for:
* The development of complete or partial software products /projects.
* The purchase of packaged or customized package software products.
* Activities to aid in the software development life cycle
The Benefits of Outsourcing
--------------------------
* Financial restructuring: Improving the business's financial position
while reducing or at least containing costs
* Core competence: Redirecting the business and IT into core competences.
* Technology Catalyst: Strengthening resources and flexibility in
technology and service to underpin the business strategic direction.
* Business transition: Facilitating and supporting major organization change.
* Business Innovation: Improving and innovating in processes, skills
and technology, while mediating financial risk through the vendor, in
order to achieve competitive advantage.
* New market: direct profit generation through joint ventures and vendor partner.
(See the website for descriptions of the "types" of software outsourcing.)
==
There can also be a downside to outsourcing, especially if it is an
offshore vendor.
Excerpts from the Outsourcing Central website
http://www.e-zest.net/Outsourcing_Central/outsourcing_risks.htm
Some Software development outsourcing risks:
---------------------------------------------
* Cost and Time over-runs for the project: Due to selection of wrong offshore
outsourcing vendor that lacks expertise for executing that particular
offshore project
* Cultural mismatch with outsourcing partner and Political or other
instability in outsourced country
* Data privacy
* Intellectual property rights
* Legal Standing and Access to Arbitration
=
For considerations about Hardware Outsourcing, read
"Outsourcing Customized Hardware Components: A Strategy to Consider,"
by James M. Bittman, BittWare, Inc.
http://www.bittware.com/products/app-specific/articles/custom.stm
What about Designing Your Own Ecommerce Site?
==============================================
"Designing a Successful Website - 1." Web Success Maker.
http://www.websuccessmaker.com/web_success_tutorials/designing_a_successful_website_1.htm
"One of the first decisions you're going to have to make is whether to
hire a professional webmaster to create and design your website or
whether to do it yourself. One factor that might influence your
decision here is the size and scope of your proposed venture. Are you
simply planning on having a theme based or single product mini site,
or are you planning something on a larger scale."
"If you're less than confident about your design ability or just
anxious to get started marketing, it's probably a good idea to bite
the bullet and get yourself some experienced help. Bear in mind that
your Website is your presence on the internet, and you need to make as
positive an impression as you can - or you might as well give up
before you begin. Professional Web design services can run you
anywhere from a few hundred to a few thousand dollars..."
Factors that might influence your decision:
* If you're site isn't up to professional standards, your visitors might well
infer that your business isn't up to professional standards.
* If you go with a professional service every time you want to change the
content of your site, add a headline, hyperlink, banner or link code, it's
probably going to cost you.
* If you use software or a do-it-yourself solution, you can make unlimited
changes and the only thing it is going to cost you is a bit of your time.
*If you want to have full control over your business you should have full
control over the site that represents it. So if you do decide to contract the
job out, make sure that you and your Webmaster reach an understanding and
that the site is ultimately registered in your name.
==
Plug and Play Applications
----------------------------
Setting up a ecommerce website is no longer as technologically
challenging as in the past. The newest applications allow even the
most novice of users to set up a website.
"First generation Internet commerce solutions were "home-grown"
solutions that were extensively customized, required a tremendous
amount of programming knowledge, were very costly, and took a long
time to install and administer. A second generation of solutions
appeared in the form of toolkits that were used to build rudimentary
catalogs and storefronts. Still, database management and HTML
expertise were required. In contrast, today's end user applications
are turnkey solutions. These plug-and-play applications offer
everything from set-up wizards and tutorials to functionality with
back-end accounting systems, permitting companies to develop a Web
store in a matter of hours. With these advanced offerings, the big
decision is no longer how to develop the Web store, but instead, how
soon can it be working."
From "What is e-Commerce." The Watters Group.
http://www.thewattersgroup.com/ecomerce/whatis.html
*******************************************************************************7.(B)
List a few companies that provide e-commerce set-up services,
highlighting what the services are relating them to the various stages
of setting up an e-commerce website.
*******************************************************************************
Intranet Solutions
-------------------
http://www.intranet-services.com/ecommercewebsites.html
"We offer a variety of programs to provide online ordering facilities
for our clients. Unlike the majority of shopping solutions our
softwares is designed to be totally customizable. A typical E-commerce
Solution includes the following development stages and components:
Specification development
Product Catalogue
Customers' section development:
- registration
- shopping cart
- product information
- product search
- SSL certificate integration
Administrator's section development:
- login
- access management
- order management
- product management
- product pictures upload
- discount algorithms and special offers
- shipping and sales tax settings
Credit card processing (if Required)
The Watters Group
------------------
http://www.thewattersgroup.com/index.html
Offers everything from initial consultation, design of website,
hosting of site, marketing, webmaster support, database development
and e-commerce services.
See example:
http://www.thewattersgroup.com/chiropractic.html
Expidite Media Group
---------------------
http://www.expeditemg.com/
Everything from initial design to ecommerce implementation.
===========
I have given you a lot to absorb. I hope it is helpful and not to overwhelming!
umiat
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physical boundaries in ecommerce
overcoming barriers to ecommerce
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designing a successful website
impact of design on a website
Incentives to bring business online
benefits of software outsourcing
outsourcing hardware development |
