How is commerce at UTM?

E-commerce

• (HI IAM DEVELOPING E-COMMERCE WEBSITE FOR BUSINESS I HAVE SOME QUESTIONS THAT I WOULD LIKE SOME ANSWERS TO.) please answer Q2, Q4, Q6, Q7 in detail. make sure that answer are directly related to the question provide diagrams and images were ever possible thank you" 1.)Describe the term e-commerce? Discuss the advantages and disadvantages that an e-business architecture may possess over its alternative corporal business set up. 2.)Provide and discuss facts and figures supporting the idea - E-Commerce is the trade of future. 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. 4.)In the light of discussion done for above question, examine and evaluate the incentives and initiatives are available to overcome the barriers to trading via e-commerce. 5.)Discuss in details the security measures that must be taken into consideration while setting up an e-commerce business with online shopping facility for customers. 6.)(a) 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. (b) Considering this website is to be designed for a small-scale 'software & hardware' selling organisation, discuss the impact on existing organisational culture. 7.)Evaluate the feasibility of outsourcing services (software & hardware) while setting up an E-Commerce website. 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. ---

• Answer:

  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 Google Search Strategy ecommerce definition future of ecommerce future of e commerce will ecommerce replace traditional storefronts? future revenues from e-commerce advantages of ebusiness compared to offline ethical and moral issues in business physical boundaries in ecommerce overcoming barriers to ecommerce b2c business model setting up an ecommerce website conflicts between ecommerce and brick and mortar designing a successful website impact of design on a website Incentives to bring business online benefits of software outsourcing outsourcing hardware development