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Electronic commerce fundamentals ch12

Chapter 12

12

Business Plans for
Implementing
Electronic Commerce

Electronic Commerce

1


Objectives
Setting objectives for the benefits and
costs of electronic commerce initiatives
◆ Deciding which electronic commerce
project elements to outsource
◆ Selecting Web hosting services
◆ Use project management techniques to
plan and control e-commerce initiatives

◆ Staffing e-commerce activities


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2


Planning the Electronic
Commerce Project


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A successful business plan for an
e-commerce initiative includes
● Identifying

the initiative’s objectives
● Managing the implementation of those
objectives
● Overseeing the continuing operations of
the initiative once it is launched

3


Setting Objectives
Should include expected benefits and
expected costs
◆ Measuring both benefits and costs is
becoming increasingly important
◆ Companies often create a pilot Web
site to test an idea


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4



Setting Objectives


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Benefit objectives
● Online

surveys are used to gather data
from visitors to the Web site
● Statistical software is used to measure
length of visit, return visits, etc.
● Companies try to convert benefits of its
Web site into dollar amounts, which often
yield only rough approximations
5


Setting Objectives


Cost Objectives
● Web

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development often uses new
hardware and software, which makes it
difficult to project the exact costs
● Hiring, training, and paying the personnel
involved with the Web site accounts for
over 75% of the site’s total budget
● Annual cost to maintain a site is often
between 50% and 100% of its initial cost
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Comparing Benefits to Costs
Figure 12-1

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7


Internal Development
vs. Outsourcing


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First step in any e-commerce project is
to create an internal team who will be
responsible for the project. Members
should be
● Knowledgeable

about the Internet and its

technologies
● Creative thinkers
● Successful individuals, respected by their
peers
8


Internal Development
vs. Outsourcing


Early outsourcing
● Company’s

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information systems professionals
work closely with the outsourcing team and
learn the new technology before becoming
responsible for the project



Late outsourcing
● Company’s

information systems professionals
design, implement, and operate the system,
then outsource once it is established

9


Internal Development
vs. Outsourcing


Partial outsourcing
● Company

identifies specific portions of the
projects that can be completely designed,
developed, implemented, and operated by
another firm that specializes in that
function

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Selecting a hosting service
● Factors

to consider include reliability,
bandwidth, security, and cost
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Managing Electronic Commerce
Implementations


Project Management
● A collection

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of formal techniques for
planning and controlling the activities
undertaken to achieve a specific goal
● Software products, such as Microsoft
Project and Primavera Project Planner
give managers an array of built-in tools
● Project Management Institute is devoted to
the promotion of professional project
management practices
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Project Management Institute Home Page
Figure 12-2

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Staffing the Operation


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Most important areas of staffing and
e-commerce initiative include
● Business

management
● Application specialists
● Customer service
● Systems administration
● Network operations
● Database administration
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Post-Implementation Audits
A formal review of a project after it is up
and running
◆ Gives managers a chance to examine
the specifics for the project outlined in
the planning stage and compare them
to what actually happened
◆ Raises questions about the project’s
objectives and provides feedback on
strategies


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