Strategic Planning for Web Technology

Report
Strategic Planning for Web
Technology
David Strom
[email protected]
Port Washington, NY, USA
+1 516 944 3407
Agenda
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Intranets and extranets
Guide to push technologies
Managing your web site
Introduction to eCommerce
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Topic 1: Intranets and extranets
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Intranets everywhere
Distinguishing characteristics
Factors that make a successful extranet
Tax News Network case study
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Intranets
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Intranets everywhere
Role of Lotus Notes
How to pick the right products
Other technologies required
Decision points on your first Intranet
How to manage the transition
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Intranets everywhere
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Mentioned hundreds of times in trade pubs
Now a "section" in most trade mags
Weekly conferences
Fedex example getting tiresome
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Inc.
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Some definitions
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Internet tools among family
Internet in a bottle
Non-public website for one corporation
Joy, concern, and sheer terror
Caracas 4/98 (c) 1998 David Strom,
Inc.
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How Intranets benefit
corporations
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Quick to deploy and assemble
Easy to mix and match components
Promote many-to-one communications
Enhance work flows
Fit in on both back end (data store) and
front end (query)
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Differences between Intranet and
the Internet
• Internal access prime reason
• Uses same technologies but for different
reasons
• Manage work flow and discussions, not just
billboards
• Group and project focus, rather than on the
individual
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Inc.
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Differences between Intranets
and extranets
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I: control desktop and plug-ins
E: communicate with customers
I: got lots of bandwidth to burn
E: better reach and influence
I: mailing lists and newsletter metaphor
E: TV channels
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Inc.
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Is Notes an Intranet spoiler or
promoter?
• (+) Domino a good way to give inbound
web access
• (+) A way to organize your web presence
• (-) Its own universe still
• (-) SMTP mail gateways only lately decent
quality
Caracas 4/98 (c) 1998 David Strom,
Inc.
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How to pick the right products
• First, pick your OS platform
• Then, determine how you will create
content
• Finally, where is your data and how will
you get to it?
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Inc.
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Picking the right Intranet
platform
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Ease of setup/configuration
Functionality of OS
Integration into existing file/print services
Scalability
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Availability of third-party tools
• Content creation tools stink
• 16 bit vs 32 bit
• Play catch up w/ new HTML tags: even
Netscape Gold!
• WSYIWIG isn't always desirable
• Graphic editors required highly skilled
operators
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Inc.
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Where is your data?
• Front end: what are your users comfortable
with? (Windows!)
• Back end: where does the data live and
thrive?
• Infrastructure: what connects them?
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Information delivery tools
mediocre
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Not everyone is networked
Remote access still tough
Mail replication issues
Dealing with dial-up parameters
IP not on every desktop
Gateways are still a bad word
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Choices for deploying enterprise
IP
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Every desktop, router, server
Only on NetWare servers (IP gateways)
Migrate to NT servers
What about SNA?
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"IP everywhere" issues
• Deploy DHCP
• Standardize on applications (mail, web,
news)
• Or buy a suite
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Inc.
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SNA IP issues
• TN3270
• Or inside web browsers (Simware,
Attachmate)
• Moving information out of the host
• via HTML
• via SQL
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Inc.
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Other Intranet technologies
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Web servers, of course
Graphics editor
Link checkers
Tracking visitors
Search tools
Animation tools
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Inc.
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Recommendations
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NT: WebSite, IIS web servers
Unix: Netscape web server
WebTrends for tracking visits
Verity's Topic for searching
Hold off on animation for as long as you
can
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Inc.
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Decision points on your first
Intranet
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What is your purpose?
Who is responsible for content?
How will servers be administered?
How do they scale?
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Inc.
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How to manage the transition
• IP deployment
• Open systems expertise
• Role of IS management
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Inc.
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What is your open systems
expertise?
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How much Unix?
Does your email run SMTP?
Where is your data stored?
How much HTML?
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Who takes the lead?
• IS
• Non-IS
• Technical vs political decisions
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Inc.
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For more information
• My own Intranet Information Page:
www.strom.com/pubwork/intrane
t.html
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Factors that make a successful
extranet
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Audience
Purpose
Design
Community
Architecture choices
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Know your audience
• Executives, middle management, staff?
• How well do you know these people?
• Intended for your customers? New
prospects?
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Understand your purpose
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Increase sales
Increase visibility
Communicate with clients
Enhance client relationships
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Consider these design points
• Keep the user in mind at all times!
• Ease of access
• Minimum of clutter, gratuitous graphics,
menus
• Site maps readily available
• Browser version, plug-in support
• Wide or narrow, deep or shallow content
• Membership or public access
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Inc.
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Members-only access
• Restrict to customers, staff,
management
• Keep competitors from downloading
your customer file
• Maintain customer privacy
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Inc.
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Create layers of information
• Different people need to know
different things
• Makes finding things simple
• Match user with appropriate content
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Inc.
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Create a sense of community
• Send email to group periodically
• Inform users of new content on site
• Take the right tone of voice in
communications and content
• Maintain discussion forums to engage
user participation
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Examine your web site from
the end-user perspective
• Can I really find the answers to my
questions?
• Do I get lost in web space?
• Can I easily search the site?
• Is the level of detail interesting and
informative?
• Will I come back to the site tomorrow?
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Integrate any back end
systems
• Do you already have databases to
publish?
• Where do you maintain your customer
lists?
• Where do you maintain your content?
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Choose the right path
• Buy a turnkey system
• Build in-house from scratch
• Leverage existing IT infrastructure
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Turnkey products
• Document management systems
– PC DOCS www.pcdocs.com
• Notes-based add-ons
– Domino www.lotus.com
• Intranet software
– Livelink www.opentext.com
– Intranetics www.intranetics.com
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Turnkey product issues
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Expensive (US$50,000+)
Not easy to customize
Don’t always work for your application
Not always easy to use and setup
Read my own reviews at
www.strom.com/pubwork/cworld.html
Caracas 4/98 (c) 1998 David Strom,
Inc.
37
Example of extranet done right
• Coopers and Lybrand Tax News
Network
• www.taxnews.com
• article:
www.datamation.com/PlugIn/issues/1997/november/
11extra.html
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Tax News Network
• Audience: corporate tax professionals
• Membership and staff sections
• Public access to small portion of site
Caracas 4/98 (c) 1998 David Strom,
Inc.
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TNN fee structure
• Public site is always free
• Members get first month for free
• Different tax association members get
discounts
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Inc.
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TNN content structure
• Leverages existing Notes and Informix
databases
• Replication and authentication taken from
existing IT applications
• Staff authors documents as they did before
the extranet
• Builds upon earlier DOS-based BBS
systems
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Questions?
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Topic 2: A guide to push
technologies
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Who’s left
Understanding the publishing process
Notable products
Microsoft, Netscape
Email is the answer, now what is the
question?
Caracas 4/98 (c) 1998 David Strom,
Inc.
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My present experiences with
push technologies
• Used several push technologies since day 1
(11/96) to publish my own newsletter
• Have uninstalled most of them
• Write and edit for a living
• Push CEO test: all opted for email
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Who’s out
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Ifusion
Intermind
Travelling Software
Individual, Inc.
Any off-line browser -- remember them?
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Impact of push on your network
• Bandwidth
• Budget
• Biology
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Inc.
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Bandwidth
• Need vendors’ proxy servers to really
deploy push widely
– PointCast Caching Manager, BackWeb server,
etc.
• Otherwise 20-30% of your bandwidth goes
away!
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Budget: push is pricey
• Most products start at US$10k, and up for
publishers
• Microsoft, Netscape are “free” for clients
– but then you have to configure and setup all
your browsers
• “User VAT” -- the more popular, the more
they cost
• Maintenance/support can cost +15% extra
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Biology: the process of push
• Mechanics of publishing your channel
• Platforms supported
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Inc.
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Understanding the publishing
process
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What is your business model?
How much gear is required?
What clients and servers supported?
What desktop software required?
What control do you have over update
delivery?
• What reports are available?
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Inc.
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Is this anyway to run a
publication:
• Can’t track subscribers
• Hard to peg costs for production,
distribution, sales
• Circulation estimates are way off
• Incompatible mailboxes thwart content
delivery
• No established advertising base, rate card,
etc.
Caracas 4/98 (c) 1998 David Strom,
Inc.
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What is the business model?
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Pervasive tuners
Extranets, high-end publishing
Intranets, custom publishing
Electronic software distribution
Remote desktop maintenance
Selling screensaver advertising
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Inc.
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But push vendors need to choose
• Vendors need to decide fast what business
they want to be in
• Otherwise MS and NSCP will be the only
ones left
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Inc.
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Common push elements
• Channel
• Desktop replacement for screen saver
• Push server
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Inc.
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What clients are supported?
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Win95, NT pretty much everyone
Win 3.1: BackWeb, Pointcast
Mac: Marimba, Pointcast, BackWeb
Solaris: Marimba
Java clients: Diffusion
Caracas 4/98 (c) 1998 David Strom,
Inc.
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What servers are needed?
• Usually NT, sometimes Solaris
• Sometimes more than one machine
(BackWeb, Diffusion)
Caracas 4/98 (c) 1998 David Strom,
Inc.
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What desktop software is
needed?
• Plug-in or add-or to browser (Intermind)
• Stand-alone player that runs in background
Caracas 4/98 (c) 1998 David Strom,
Inc.
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What control do you have over
update delivery?
• Intermind lets publisher do it
• Most give this control to the desktop
• Pointcast doesn’t have any controls for
public channels!
Caracas 4/98 (c) 1998 David Strom,
Inc.
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What kind of reports do you get?
• Range from crude to unusable
• Some just tell you subscribes to your
channel
• Mostly log files that aren’t human readable
Caracas 4/98 (c) 1998 David Strom,
Inc.
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My short list of notable products
• Backweb
• Marimba
• Wayfarer/Incisa
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Backweb
• Two businesses: distributing a broad tuner
for subscribing to public channels, and
developing a customizable Intranet product.
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Inc.
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The many Backweb pieces
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the server executable itself (faceless)
the console software (config, add channels)
the public BW client software.
the automation SDK (for web publishing)
the web publishing tool (creates Infopaks)
the forms creation tool
the authoring tool (scripting)
the proxy server (reduces bandwidth)
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Marimba
• Software distribution, first and foremost
• Very complex series of software too
• Self-installing, which is nice
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Incisa
• Combine external news headlines with
authoring your own content
• Target your audience better than the others
• Just two servers, feed (external) and dealer
• Reports still aren’t terrific
Caracas 4/98 (c) 1998 David Strom,
Inc.
64
Microsoft
• Channel Definition Format, part of v4 IE
client
• Used by PointCast Connections, uses XML
• Easy to setup channels
• No server tools to speak off, still
• Example syntax at
www.strom.com/pcn.html
Caracas 4/98 (c) 1998 David Strom,
Inc.
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CDF Example
<CHANNEL
Title = "DavidStrom"
LongName = "David Strom's Web Informant"
Abstract = "An almost-weekly series of essays “
InfoURI = "http://www.strom.com/bio.html"
SELF = "http://www.strom.com/pcn.cdf"
ContentID = "10565"
Frequency = "24"
Authenticate = "No"
Ratings = "(PICS-1.1)"
>
<ITEM
Title = "David Strom's Web Informant"
HREF = "http://www.strom.com/awards/previous.html"
Type = "HTML"
Show = "Channel,SmartScreen"
Precache = "Yes"
Authenticate = "No"
>
</ITEM>
Caracas 4/98 (c) 1998 David Strom,
Inc.
66
Netscape
• Netcaster, part of v4 Communicator client
• Used by Marimba, based on Java
• Needs some other software on client such as
Bongo libraries, Shockwave
• Example syntax at
www.strom.com/netcaster.html
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Conclusions
• Need MS/NSCP convergence before push
will be popular
• Authoring tools, publishing tools are still
very crude
• Push really needs a good directory
• Microsoft is too busy with Win 98, NT v5
• Netscape is too busy fighting Microsoft
• Push will fade and email will conquer!
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Whither email?
• Diffusion, Revnet taking the right approach
to extend email functionality
• Really all push is just better email
management
• CDF might take off, if the tools mature
• Otherwise, HTML email is most promising
thing to come from push
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Inc.
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For the complete list
• Push players, past and present
• See strom.com/imc/t4a.html
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Questions?
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Inc.
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Topic 3: Managing your web site
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Picking the right ISP
Tracking your visitors
Search engine strategies
Managing and developing web content
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Picking the right ISP
• US or non-US based
• Should I have a .com?
• Outsource the entire web, storefront, or just
access
• Place your equipment in-house or at the ISP
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Trying to figure out the fees
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Inbound, outbound charges
Per page or per megabyte
Monthly fees
Other charges: maintenance, upgrades,
scripts
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Inc.
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Look carefully at usage (variable)
charges
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KB/month/disk space
KB/Month transferred
eCommerce transactions
Hits surcharges
Other things: hidden charges
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Hidden charges
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Changing links from absolute to relative
File name changes
Adding user accounts
File transfer charges
Other administrative charges
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What to look for in an ISP
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Dedicated server
Backbone connection to US
Root access, CGIs
Number of webs they support
Staff experience
References
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Inc.
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Find an ISP
• More ISPs are offering eCommerce
solutions
• Have to use their software standards and
payment schemes
• Could be pricey
• Just catching on in USA
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Inc.
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Some US-based examples
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www.psi.net/web/ecommerce.shtml
www.Best.com/bizcomm.html
www.Brainlink.com/html/saleslink.htm
www.Earthlink.net/company/webservices.h
tml
IBM: mypage.ihost.com
www.Netcom.com
business.Mindspring.com/prod-svc/smbiz/
www.Mindrush.com/
www.outer.net/ONCommerce (OuterNet)
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Price Comparison for ISP hosting
P ro v id er
S etu p fee (U S $)
M o n th ly fee
(U S $)
IB M
260
55
E arth lin k
624
194
P rem iu m P lu s
N etco m
450
300
C o m m erce S ite,
cred it card s
M in d sp rin g
175
324
C o m m ercial
A d v an tag e,
cred it card s,
C y b ercash 80
Caracas 4/98 (c) 1998 David Strom,
Inc.
P lan n am e,
p ay m en t
o p tio n s
B ro n ze, cred it
card s
Price Comparison assumptions
• 10 Mb disk storage
• Single email account
• InterNIC US$100 fee included for “.com”
domain name
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Inc.
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Understanding your connection
• Do traceroute to microsoft.com
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Why switch from ISP to on-site
hosting?
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More direct control
Management needs vs. server access
Need for multiple servers
Combining Internet and intranets
No longer cost-effective
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Inc.
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My recommendation: split your
needs
• Access to the Internet
• Host your content
• Maintain your corporate identity
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Inc.
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Tracking your visitors
• Different types of logs
• Log formats
• Tools to use
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Inc.
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Different types of logs
• Access: contain IP address, date, time, page
elements viewed
• Error: server errors usually
• Referral: who links to your site and
downloads pages
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Inc.
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Different types of log formats
• Common log format
• Extended log format
• IIS log format
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Inc.
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Things you can learn from your
logs
• Hits per day
• Domain origins
• Path people (search engines) take to your
web
• Problem areas, broken links
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Inc.
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What you can’t learn from your
logs
• Who are these people, anyway?
• How long did they actually view a page?
• Were they really from IBM?
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Inc.
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Issues with logs
• No real user names, unless you require
logins
• Could be a program, not a person
• Just because they are from ibm.net
doesn’t mean they work there
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Inc.
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Tools available
• Built-in, bundled analyzers
• Sites that capture registrations
• Build your own from perl
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Inc.
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Recommended tools
• www.WebTrends.com
• www.MarketWave.com
• Microsoft Site Server Express w/ IIS
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Inc.
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Search engine strategies
• What are they
• Different tools available
• How they work and don’t work
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Inc.
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What is a search engine?
• Program, indexing tool
• Intelligent agent
• Not always accurate
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Inc.
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Different kinds of tools
• External tools wander through many sites
for the public
• Internal tools for your own purposes
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Inc.
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Dealing with search engine
behavior
• Some use <META>, some use <TITLE>
• Keep descriptions at top of your home page
short and sweet
• Web Review article:
webreview.com/97/10/17/webmaster
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Inc.
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Keep the bots out of your site
• Exclude cgi-bin, test directories
• Create a robots.txt file that starts with
– User-agent: *
– disallow: /cgi-bin/
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Inc.
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Managing and developing web
content
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Find a managing editor
Pick your plan for updates
Stage a test web
Consider other technologies
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Find a good managing editor
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Understands English syntax, grammar
Detail-oriented
Knows enough HTML to be dangerous
Understands the differences between print
and electronic publishing
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Inc.
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Standardize on the right content
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Navigation tools, icons
Images, colors, sizes
Type, backgrounds, white space usage
Contact info and placement of links
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Contact information is critical!
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Same format
Every page
So people can find you in the real world
Should include phone, fax, email, postal
address
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Inc.
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Pick the right content
management plan
• Divide and conquer: different departments
author different pages
• Control freak: one person responsible for
group of pages
• How do you implement change controls?
• What happens when you have multiple
webs and locations?
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Inc.
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Are HTML editors useful tools?
• Not really (tags, long file names, etc.)
• Do you want to learn another word
processor?
• I use a combination of Word and WordPad
• You still end up adjusting the code manually
• WYS is not always WYG!
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Inc.
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Staging a test web
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Check and validate your links, spelling
See your site from different browsers
Make sure navigation makes sense
Mirror your web locally for backup
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Inc.
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Maybe consider dynamic content
technologies
• Cold Fusion
• Active Server Pages
• Other database-driven webs
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Inc.
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Questions?
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Inc.
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Topic 4: Introduction to
eCommerce
• Advantages and disadvantages of Internet
marketing
• What becomes eCommerce success
• Five principles of good eCommerce sites
• Evaluating various eCommerce suites
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Internet Marketing
• Look good to the public,
– be on the cutting edge
• Supplement traditional channels,
– be real-time
• Focus on global niches,
– be high-content
• Avoid the trailing edge,
– the competition is already doing it
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Advantages
• Direct, one-to-one marketing opportunity
• Allows you to learn useful information and
build customer relationships
• Relatively inexpensive medium compared
to advertising, direct mail or telemarketing
• Capacity to be a major distribution channel
• Results are measurable, sometimes
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Challenges
• Most say that eCommerce is taking off, just
differ on the rate!
• How do we convince the general public that
they will really like eCommerce?
• Focus initially has been on business-tobusiness uses
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Obstacles to Wide Deployment
• Easy forms of payment
• Trust in the system
• Perceived benefits outweigh the risk
(What’s in it for me?)
• Technology and infrastructure still primitive
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Adoption Curves
•
•
•
•
•
Credit cards, ATMs: 10 years
Cell phones: 15 years
TV: 25 years
VCRs: 30 years
Internet usage: <10 years!!
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Different Types of Internet
Marketing
• Demand creation
• Consumer pull
• Provider push
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Demand Creation
• Product selection is costly, so we want to:
– reduce the time to find the product; and/or,
– increase the customization of the product
• A successful Internet presence:
– creates demand for more sales; and,
– these sales are incremental
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“Consumer Pull” Marketing
• Web sites are the Internet version of
infomercials:
– synchronous interaction, consumer initiated
• Great fun watching:
– sites trying to attract and retain viewers; and,
– folks trying to interpret click-throughs, hits, etc.
• Interactive and transactional ads become
more popular
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Inc.
115
“Provider Push” Marketing
• Some web sites do “upsells”, i.e.,
– interact with the consumer at checkout time to
buy more stuff
• The focus is on the current purchase,
– and “blue light” specials
• But, the next step requires an asynchronous
interaction...
Caracas 4/98 (c) 1998 David Strom,
Inc.
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More “Provider Push” Marketing
• E-mail provides the ability to do “outcalls”,
– interact with the consumer on a regular basis
• The focus is on purchase history
• The best consumer relationships are one-onone, hence the value of direct marketing
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Some Conclusions
• Consumer control of privacy is essential
– most folks simply want the choice of opting out
• The granularity of control must be fine, e.g.,
– over number and frequency;
– over categories of interests; and/or
– over (indirect) dissemination to third-parties
• Regardless, there are likely legal issues,
– when maintaining/using a consumer database
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What Becomes eCommerce
Success?
•
•
•
•
•
Overview of eCommerce market
Review physical storefront success factors
Propose some definitions
Define success for the web
Draw up five eCommerce principles
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Overview of eCommerce Market
• Predictions
• Success factors
• Five principles
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eCommerce Revenue Predictions
are Wide-Ranging
S ou rce
1996 (B $U S )
2000 est. (B $ U S )
ID C
$2.2
94
Forrester
1.4
117
Ju p iter
.7
15.6
D ataq u est
6.4
56
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Inc.
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And Not Very Believable
• IDC says the web will become a mass
market in the US by 12/98!
• With 100 million users!
• Let’s not confuse web users with
eCommerce BUYERS!
Caracas 4/98 (c) 1998 David Strom,
Inc.
122
Let’s Keep Our Perspective
• Size of US movie industry -- $6B!
• Size of adult video rentals - $6B!
• Total US music sales -- $6B!
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Inc.
123
Ticketmaster
• US$5 million/month via the web in sales
• Started 11/96
• Generating lots of new buyers, who
wouldn’t ordinarily use their service
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Inc.
124
Then there is Disney.com
• Web site Daily Blast signing up 15k
members/month
• Sales via web are equal to 3x-5x of physical
Disney store!
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Inc.
125
And of Course, There is the Porn
Industry
• “However, extensive interviews with adult
site owners yield a picture of a highly
charged market of approximately 10,000
sites generating about $1 billion in revenue
per year, most through electronic credit card
transactions.”
• From Interactive Week
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Sad State of Today’s eCommerce
Marketplace
•
•
•
•
•
Poor quality tools
Hard-to-find stores
Limited payment methods
Credit card snooping perceptions
Older browser versions can’t view latest
sites
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Case in Point: Buying a Bike
Rack
•
•
•
•
Item not carried: outdated catalog
Telesales not familiar with web
No cross-sell or substitutions online
Needed three phone calls to complete
purchase
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Let’s Learn From the “Real
World”
• Compare what works for physical stores
• Try to extend to the web
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Critical Success Factors for
Physical Storefronts
•
•
•
•
•
•
Location
Branding
Good service
Good product selection
Proper pricing and margins
Traffic
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First Problem:
• None of these translate on the ‘net!
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Now Try to Agree on Definitions
for Web Stores
• What determines a good location?
– Position on a search page
– Nearness to popular destination
– Ad on a popular server
• What determines branding?
– Memorable domain name
– Popular search category destination
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An Example of bad location:
Montana Meats
• www.imt.net/~lingerie/buffalo/buff
alo.html
• Can’t they afford their own domain name?
• www.company.com/~anything is BAD
NEWS!
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Inc.
133
Another Case: Buying Toner and
Batteries
• www.cartridgesusa.com,
www.batterybarn.com
• Catalog shows pictures of parts
• Easy to find relevant item
• But payment acknowledgement incomplete
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Inc.
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Determining Traffic
• Hard to do -- is it hits, page views,
registered users?
• [HITS = How Idiots Track Success]
• Hard to measure -- do you count gifs? Use
log files?
• No general agreement on any metrics!
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Inc.
135
Traditional Advertising Doesn’t
Apply Anymore
• Can’t measure anything
• Every site has its own banner sizes
• The Web is not TV
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Inc.
136
One Working Definition of
Success:
• SURVIVAL!
• If a site is still running after 12 months, and
getting more traffic, it is a success.
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137
Does a site actually have to sell
something?
• Many actual eCommerce sites don’t do the
complete transaction (Cisco)
• Require faxes or telephone calls!
• Some merely have catalogs
• A good example: Singapore Power Authority
www.spower.com.sg/readmeter.cgi?cmd=form
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Inc.
138
Good eCommerce Examples
•
•
•
•
•
Easy to find merchandize
Good service
Individual customization is key
Simple navigation
Business-to-business focus
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Inc.
139
AMP Connect
• Have customers in 100 countries
• Speak many languages
• Produce 400 catalogs covering 135,000
items
• Mailings cost US$7MM/yr
• Fax back cost US$800,000/yr
• But you can’t buy anything directly!
Caracas 4/98 (c) 1998 David Strom,
Inc.
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Solution: “Step Searching”
•
•
•
•
Saqqara.com software to enhance Oracle database
Provide user feedback as they type query
Show how many matches in the database
Different mechanisms for searching:
– by part number
– by alphabetical names
– by part family
– by picture even
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Inc.
141
AMP
connect.ampincorporated.com
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Inc.
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AMP Connect (con’t)
• And can set to list parts that are available in
specific countries!
• Updated daily with over 200 item changes
• Detailed drawings saves time for customers
to pick the right item
• Saved AMP over US$5MM in production
costs
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Inc.
143
Save in Translation Costs
• AMP catalog in several languages
• Translation cost was US$100,000
• Versus US$1.5MM to produce separate
translations of print editions
Caracas 4/98 (c) 1998 David Strom,
Inc.
144
Silicon Investor
www.techstocks.com
• Difficult to find anything
• Incomplete database of companies
• Companies are arranged poorly
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Inc.
145
First Principle of eCommerce:
• It is easy to find what you are selling!
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Inc.
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Amazon.com
• Services frequent readers with a variety of programs
– Editorial comments
– If you liked this book, you’ll like...
– Notification of new books by author, topic
– Simplified “1 Click” ordering
• Uses simple pages and email
• Associates program for commission kickbacks
• Gift certificates via email
• And ... lots of books to choose from
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Inc.
147
Amazon
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Update your directories!
• This one is almost a year old
• www.asiapage.com/alist.html#jewellery
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Inc.
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Non-secure servers
• Many SG sites collect credit cards on them
• www.asiapage.com/goodwood
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Inc.
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Second Principle of eCommerce:
• Deliver solid service!
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Dell
• Most notable site for computer buyers
• Customize the features you want via a web
form
• Simplifies and personalizes the shopping
experience
• WYSIWYB (buy)
• >US$1MM/day in sales!
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Inc.
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Dell
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Inc.
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Canadiantire.com
• eFlyer uses email notification along with
web forms
• Customize exactly what coupons and deals
are sent to you
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Inc.
154
Third Principle of eCommerce:
• Individual customization is key
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BMW Motors
•
•
•
•
Example of what not to do
Use gratuitous graphics
Cheesy low-res videos
Toys, not tools
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Inc.
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BMW
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Compare with Subaru
• Find specific information about each car
• Can price options to your particular needs
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Inc.
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How NOT to Design a Payment
Screen
• www.netmar.com/new/norderform.shtml
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Inc.
159
How NOT to take advantage of
bandwidth
• www.clickdiz.com
• Two different pages, one for SG ONE, one
for all others
• But SG ONE page has just heavy graphics - why?
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Inc.
160
A better example: fishing licenses
• Simple, quick, and does the job with a
minimum of clutter
• www.permit.com
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Fourth Principle of eCommerce:
• Make navigation simple!
• Use small graphics, site maps, indexes
• Avoid clutter, frames
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Int’l Commerce Exchange
System
• Matches overstocked sellers with buyers
• B2B exclusively
• Uses faxes to notify potential customers
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Inc.
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ICES www.icesinc.com
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Inc.
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Fifth Principle of eCommerce:
• Business-to-business focus
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Popular eCommerce Suites
V en d o r, P ro d u ct
V ersio n
P rice
P la tfo rm
IC a t
E lec C o m m S u ite
3 .0
$ 9 0 00
N T, 95
IB M
N et.C o m m erce
3 .0
$ 5 0 00
N T , A IX
M icro so ft
S iteS erv e r C o m m erce
3 .0
$ 5 0 00
NT
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Popular eCommerce Suites
(con’t)
V en d o r, P ro d u ct
V ersio n
P rice
P la tfo rm
O M T ra n sa ct
O p en M a rk et
2 .3
$ 2 5 0 ,0 0 0
U n ix
In tersh o p O n lin e
In tersh o p
3 .0
$ 5 0 00
NT
U n ix
W eb S ite P ro
O 'R eilly
2 .0
$800
N T, 95
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Inc.
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The Cold Hard Reality of Suites
• Suites are nothing more than collection of
products
• Lack integration among various elements
• Difficult to setup, customize, and use
• Require you to live “inside” their structure
• Limited payment options
• Sounds like early MS Office
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Payment Systems Included in
Each Suite
•
•
•
•
•
•
Microsoft: Verifone, Buy Now
IBM: Verifone, SET, eTill
iCat: None (but many third parties)
OpenMarket: Verifone
WebSite Pro: InternetSecure, CyberCash
Intershop: CyberCash, ICVerify, others
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Inc.
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Sample Stores Included in Each
Suite
• Microsoft: 4 stores
• IBM: eMall, simple and advanced sample
stores
• iCat: 1 hardware store
• OpenMarket: none
• WebSite Pro: 1 bookstore
• Intershop:3 stores
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Inc.
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Databases Supported in Each
Suite
•
•
•
•
•
Microsoft: SQL Server
IBM: DB2
iCat: 4D, Sybase SQL Anywhere
WebSite: Access
Intershop: Sybase SQL 11
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Inc.
171
Putting Together Your Own
Solution
•
•
•
•
•
•
Mercantec shopping cart
SQL Server database
ICVerify payment system
WebCatalog
IIS web server
Total price: <US$10,000
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Inc.
172
Don’t Forget the Process and
People
• Put together policies and procedures book
that describe what you did
• Gather forms for your business partners to
sign up for ISPs if needed
• Document how to make changes to your
product catalog via the web
• Approach your trading partners with
solutions, not problems!
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Inc.
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Thanks!
• Review
• Q&A
• David Strom
• +1 516 944 3407
• [email protected]
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Inc.
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