Chapter 7

Shopping and ORM Solutions

Agenda

• Online Shopping

• Electronic Software Distribution

• Configurator Tools

• Operational Resources Management

• Pricing on Internet

Online Shopping

• Business requirements

• Setting up consideration

• Tracking customers

• Process orders

• Administration

• Software feature

• Software selection

Business Requirements

• Select products

• Proper image of the online shop

• Cross-selling and cross-promotion

• Implementing method– In house– Outsourcing– ISP hosting

Setting Up Consideration

• Competent employees• Tracking customer• Proper logistics partner and bank• Software selection• Additional features

– Auto-responder– Chat room– Newsgroup– Automatic search engine– configurator

Tracking Customers

• Basic authentication– Login and password

• Cookies• Domain name• IP address• Personalized URLs• Strong authentication

– Digital certificates

Process Order

• Shopping basket– Add and delete items

– Change amount

• Order method– Web page

– E-mail

– Fax

– Telephone

– Normal mail

Process Order

• Payment System– Security for credit card: secure socket layer (SSL) and

secure electronic transaction (SET)

– Paper and electronic cheques

– Invoice

– Cash on demand

• Automatic acknowledgements– E-mail

– Fax

Process Order

• Discount calculation

• Tracking– Order status– Customer feedback

Administration

• Update product & price– Online– Off line

• Database integration– Entire buying process– Marketing research– Inventory management

• Availability – Peak time

• Prioritization– Customers

Software Feature• Database• Shopping basket• Order and payment process• Payment• Reporting• Search engine• Web design templates• Terms and conditions• Interfaces

– Existing databases– Enterprise and legacy applications

Software Selection

• Criteria– Type: hosting or product– Platform– Price– Feature– Others?

• Product– HP Emporium– IBM Net.Commerce– Microsoft Commerce Server

Agenda

• Online Shopping

• Electronic Software Distribution

• Configurator Tools

• Operational Resources Management

• Pricing on Internet

Electronic Software Distribution

• Benefit

• Problem & strategy

Benefit

• Reduce cost– Shipping– Duplication– Delivery– Inventory

• Flexible pricing strategy– Concurrent licenses: database management systems– Licensed periods: shareware or tryware or digital

certificates– Licensed session or time: hotel installation

Problem & Strategy

• Pirating• Digital infrastructure strategy

– Compression format (FlashPix)– Copy prevention (cSafe)– Devices (ImageLock)

• Implementing consideration– Easy to use (no. of installation, updating)– No additional hardware

Agenda

• Online Shopping

• Electronic Software Distribution

• Configurator Tools

• Operational Resources Management

• Pricing on Internet

Configurator Tools

• Help customer to configure the desired product• Benefits

– Reduce technical people in pre-sales and sales

– Reduce the return rate

– Reduce time requirement

• Products– BT Squared Technologies

– Trilogy

Agenda

• Online Shopping

• Electronic Software Distribution

• Configurator Tools

• Operational Resources Management

• Pricing on Internet

Operational Resource Management• Digitizing the paper based operational resource

management• Benefits

– Reduce transaction cost and price– Track order– Centralized control

• Features – Administration tool: non technical person– Catalogue support: multiple suppliers– Search engine– Enterprise integration– Localization: price and product– Reporting– Workflow

Operational Resource Management

• Products– Commerce Chain by Commerce One– Netscape CommerceXpert

Agenda

• Online Shopping

• Electronic Software Distribution

• Configurator Tools

• Operational Resources Management

• Pricing on Internet

Pricing on Internet

• Advertising pays the product

• Buyer’s willingness to pay

• Transaction costs based billing

• How do you use ESD and configurator in your organization to improve operation efficiency?

• Can you think the major features which are needed when you select a ORM tool?

• How does these new Internet pricing affect the traditional business?

Points to Remember

• Online Shopping

• Electronic Software Distribution

• Configurator Tools

• Operational Resources Management

• Pricing on Internet