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Transcript of Lesson Three General Comments on Harrah’s Discuss Ben and Jerry’s Chapters 5 and 6 Review Mid...
Lesson Three
General Comments on Harrah’s Discuss Ben and Jerry’s Chapters 5 and 6 Review Mid Term Time for Group Project
WHAT’S REPLACING THE DAY AFTER THANKSGIVING FOR SHOPPING SALES?
Black Friday is traditionally a big day for retailers
It’s when Christmas shoppers spend a lot of money, moving retailers out of the red and into the black
But Black Friday may soon be replaced by Cyber Monday
Cyber Monday is the Monday after Thanksgiving when people go back to work and buy products online
B2B E-Commerce
Business to Business (B2B) e-commerce – when a business sells products and services to customers who are primarily other businesses Where all the e-commerce money is Basically, it’s about businesses doing business
with other businesses Supply chain management (from Chapter 2) is
a big part of B2B e-commerce
B2C E-Commerce
Business to Consumer (B2C) e-commerce – when a business sells products and services to customers who are primarily individuals B2C is the glitzy e-commerce like iTunes,
eBay, etc B2C is a primary focus of the later sections in
this chapter
C2B E-Commerce
Consumer to Business (C2B) e-commerce – when an individual sells products and services to a business True economic inversion of the B2C model Fotolia is a good example (www.fotolia.com) There you can post photos and videos and businesses
will pay you a royalty to use them (if they like what you offer)
You can also advertise businesses on your personal Web site (called an affiliate program) and receive monies for visitors who jump from your site to the business’ Web sites
C2C E-Commerce
Consumer to Consumer (C2C) e-commerce – when an individual sells products and services to another individual. You selling to another person (or the reverse) Usually occurs through an intermediary such as
eBay
B2G E-Commerce
Business to Government (B2G) e-commerce – when a business sells products and services to a government entity. Lockheed providing products and services to
DoD Fairly large e-commerce model in terms of
revenue Most U.S. government entities (for sure at the
federal level) won’t do business with your business if you can’t do it electronically
G2C E-Commerce
Government to Consumer (G2C) e-commerce – e-commerce activities performed between a government and its citizens Does not fit well at all within the traditional
supply-and-demand e-commerce notion Paying taxes, registering vehicles, etc
Examples:
www.amazon.com www.kayak.com www.alibaba.com www.ebay.com www.crowdspring.com www.topcoder.com www.threadless.com www.mystarbucksidea.com www.groupon.com www.woot.com www.krn.com
B2B: Horizontal Versus Vertical
B2B e-commerce takes advantage of e-marketplaces
Electronic marketplace (e-marketplace) – interactive business providing a central market where multiple buyers and sellers can engage in e-commerce Horizontal e-marketplaces Vertical e-marketplaces
B2C Marketing Mix Tools
SEO/SEM Online ads Viral marketing Affiliate programs Social Media
Affiliate Programs
B2C Payment Systems
Credit cards Financial cybermediaries Electronic checks Electronic Bill Presentment and Payment Smart cards
Financial Cybermediaries
Financial cybermediary – Internet-based company that makes it easy for one person to pay another person or organization over the Internet PayPal (www.paypal.com) is the most well-
known
Financial Cybermediaries
Security: The Pervading Concern
Security is very important when moving money
Some security measures… Encryption Secure Sockets Layers Secure Electronic Transactions Many, many others
Encryption
Encryption – scrambles the contents of a file so that you can’t read it without having the right decryption key
Often through public key encryption (PKE) – uses two keys: a public key for everyone and private key for only the recipient of the encrypted information
Public Key Encryption
Secure Sockets Layers
Secure Sockets Layer (SSL)… Creates a secure connection between a Web
client and server Encrypts the information Sends the information over the Internet
Denoted by lock icon on browser or https:// (notice the “s”)
Secure Sockets Layers
The “s” in https and the padlock
Secure Electronic Transactions
Secure Electronic Transaction (SET) – transmission method that ensures transactions are legitimate as well as secure Helps verify use of a credit card, for example,
by sending the transaction to the credit issuer as well as the seller/supplier
E-Business Trend – M-Commerce
Class-show iphone
E-Business Trend – Long Tail
Long Tail – first offered by Chris Anderson; explains e-commerce profitability in terms of a sales curve
Brick-and-mortar businesses carry limited inventory, inventory that is popular
E-businesses can carry huge amounts of “niche” inventory that may only sell a couple of times a year
E-Business Trend – Long Tail
Old Style Software Development
Phase 1: Planning
Sample Project Plan
Phase 2: Analysis
Two primary analysis activities:1. Gather the business requirements
Business requirements - the detailed set of knowledge worker requests that the system must meet in order to be successful
Business requirements address the “why” and “what” of your development activities
Joint application development (JAD) - knowledge workers and IT specialists meet, sometimes for several days, to define or review the business requirements for the system
Phase 2: Analysis
2. Prioritize the requirements Requirements definition document – prioritizes
the business requirements and places them in a formal comprehensive document
Again, you probably can’t do everything, so prioritizing is important
Users sign off on this document which clearly sets the scope for the project
Phase 2: Analysis
Take time during analysis to get the business requirements correct. If you find errors, fix them immediately. The cost to fix an error in the early stages of the SDLC is relatively small. In later stages, the cost is huge.
Phase 3: Design
Design phase - build a technical blueprint of how the proposed system will work
Two primary design activities:1. Design the technical architecture
Technical architecture - defines the hardware, software, and telecommunications equipment required to run the system
Phase 4: Development
Development phase - take all of your detailed design documents from the design phase and transform them into an actual system
Two primary development activities:1. Build the technical architecture
2. Build the database and programs Both of these activities are mostly performed by IT
specialists
Phase 5: Testing
Testing phase - verifies that the system works and meets all of the business requirements defined in the analysis phase
Two primary testing activities:1. Write the test conditions
Test conditions - the detailed steps the system must perform along with the expected results of each step
Component-Based Development Methodologies Rapid application development (RAD) Extreme programming (XP) Agile methodology
Rapid Application Development (RAD)
Rapid application development (RAD) (also called rapid prototyping) - emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process
Prototypes are models of the software components The development team continually designs,
develops, and tests the component prototypes until they are finished
Rapid Application Development (RAD)
Build new software
components
Use already-existing software
components
Extreme Programming (XP)
Extreme programming (XP) - breaks a project into tiny phases and developers cannot continue on to the next phase until the first phase is complete
Agile Methodology
Agile methodology - a form of XP, aims for customer satisfaction through early and continuous delivery of useful software components
PROTOTYPING
Prototype – a model of a proposed product, service, or system
Prototyping - the process of building a model that demonstrates the features of a proposed product, service, or system Proof-of-concept prototype - used to prove
the technical feasibility of a proposed system Selling prototype - used to convince people of
the worth of a proposed system
The Prototyping Process
The prototyping process involves four steps:1. Identify basic requirements
2. Develop initial prototype
3. User review
4. Revise and enhance the prototype
The Prototyping Process
Advantages of Prototyping
Encourages active user participation Helps resolve discrepancies among users Gives users a feel for the final system Helps determine technical feasibility Helps sell the idea of a proposed system
Disadvantages of Prototyping
Leads people to believe the final system will follow
Gives no indication of performance under operational conditions
Leads the project team to forgo proper testing and documentation
OUTSOURCING
Outsourcing – the delegation of specified work to a third party for a specified length of time, at a specified cost, and at a specified level of service
The third “who” option of systems development, after insourcing and selfsourcing
OUTSOURCING
The main reasons behind the rapid growth of the outsourcing industry include the following: Globalization The Internet Growing economy and low unemployment rate Technology Deregulation
Outsourcing – RFP
Request for proposal (RFP) – formal document that describes in excruciating detail your logical requirements for a proposed system and invites outsourcing organizations (vendors) to submit bids for its development
In outsourcing, you must tell another organization what you want developed; you do that with an RFP
Therefore, the RFP must be very detailed and complete
Some RFPs can take months or even years to develop
Outsourcing – SLA
Service level agreement (SLA) - formal contractually obligated agreement between two parties
In outsourcing, it is the legal agreement between you and the vendor and specifically identifies what the vendor is going to do (and by when) and how much you’re going to pay
Supporting SLA documents – service level specifications and service level objectives – contain very detailed numbers and metrics
Offshore Outsourcing
Primary outsourcing countries are: India China Eastern Europe (including Russia) Ireland Israel Philippines
The Advantages and Disadvantages of Outsourcing Advantages:
Focus on unique core competencies Exploit the intellect of another organization Better predict future costs Acquire leading-edge technology Reduce costs Improve performance accountability
The Advantages and Disadvantages of Outsourcing Disadvantages:
Reduces technical know-how for future innovation
Reduces degree of control Increases vulnerability of your strategic
information Increases dependency on other organizations