Chapter

4 Learning Objectives

1. Understand the fundamental requirements for

initiating an online business.
2. Describe the process of initiating and funding a startup
e-business or large e-project.
LAUNCHING A SUCCESSFUL ONLINE  3. Understand the process of adding EC initiatives to an
BUSINESS AND EC PROJECTS existing business.
4. Describe the issues and methods of transforming an
organization into an e-business.
5. Describe the process of acquiring websites and evaluate
building versus hosting options.

1 2

4.1 Getting into E-Commerce and Starting a new Online

Learning Objectives Business
6. Understand the importance of providing and managing  Getting into E-commerce
content and describe how to accomplish this.  Starting a new online business
7. Evaluate websites on design criteria, such as appearance,  Adding e-commerce initiative(s) to an existing business
navigation, consistency, and performance.  Transforming to an e-business
8. Understand how search engine optimization may help a  Opening a webstore
website obtain high placement in search engines.  Starting a new online business (success and failure)
9. Understand how to provide some support e-services.  E-procurement
10. Understand the process of building a webstore.  Selling online
11. Understand building an e-commerce presence  Additional marketing channel
…

3 4
4.1 Getting into E-Commerce and Starting a new Online 4.1 Getting into E-Commerce and Starting a new Online
Business Business
 An E-startup is startup: To create a successful online  Creating a new company or adding an online project
business 1. Identify a consumer or business need in the
 To setup the website marketplace.
 To get a domain name 2. Investigate the opportunity.
 E-commerce 3. Determine the business owner’s ability to meet the
 To manage the website need.
 To manage accounting and running the online business
…

5 6

4.1 Getting into E-Commerce and Starting a new Online 4.1 Getting into E-Commerce and Starting a new Online
Business Business
 Planning online business
 Business plan
A written document that identifies a company’s goals and
outlines how the company intends to achieve the goals and
at what cost
 Business case
A document that justifies the investment of internal,
organizational resources in a specific application or project

7 8
4.1 Getting into E-Commerce and Starting a new Online
Business
 FUNDING A NEW ONLINE BUSINESS
 First Round of Initial Funding
• Angel investor
A wealthy individual who contributes personal funds and
possibly expertise at the earliest stage of business
development
• Incubator
A company, university, or nonprofit organization that
supports businesses in their initial stages of development
4.1 Getting into E-Commerce and Starting a new Online
Business
 Second Round Financing:
• Venture capital (VC)
Money invested in a business by an individual, a group
of individuals (venture capitalists), or a funding
company in exchange for equity in the business
 Additional Funding: A Large Partner
 The Initial Public Offer (IPO)

9 10

4.2 Adding E-commerce initiatives or transforming to an e- 4.2 Adding E-commerce initiatives or transforming to an e-
business business
 Adding EC initiatives to an existing  Transformation to an e-business
• A webstore  What Is Organizational Transformation?
• A portal • The organization’s ways of thinking and vision will
fundamentally change.
• E-procurement (purchase request, authorization,
order, delivery, payments) • There will be revolutionary changes to the process and
context involved in creating a new organizational vision and
• Auctions and reverse auctions rethinking business models and business strategy.
• M-commerce • The change must involve a substantial break from
• Social commerce previous ways of acting. It will likely involve discovering
and developing new opportunities and new ways of doing
things.

11 12
4.2 Adding E-commerce initiatives or transforming to an e-
business
 Transformation to an e-business
 What Is Organizational Transformation?
• The change must permeate through and impact on the
behavior of a majority of organizational members.
• The change will involve creating new systems, procedures,
and structures that not only enable and dictate how new
processes function, but that will also impact on the deeply
embedded business models and understandings that drive
the organization.
13
4.2 Adding E-commerce initiatives or transforming to an e-
business
 Business process management (BPM): method for
business restructuring that combines workflow
systems and redesign methods; covers three process
categories—people-to-people, systems-to-systems, and
systems-to-people interactions
 Software Tools for Facilitating the Transformation
to E-Business
 Change Management
15
4.2 Adding E-commerce initiatives or transforming to an e-
business
 Transformation to an e-business
• How an Organization Can Be Transformed into an E-
Business
For an organization to transform itself into an e-
business, it must transform several major processes,
such as procurement, sales, customer relationship
management (CRM), and manufacturing, as well as
deal with change management.
• Business Process Reengineering (BPR)
14
4.2 Adding E-commerce initiatives or transforming to an e-
business
16
4.3 Building or acquiring a website 4.3 Building or acquiring a website

 Clasification of websites  Transactional website

 Informational website A website that sells products and services
A website that does little more than provide  collaborative website
information about the business and its products and A site that allows business partners to collaborate
services  social-oriented website
 Interactive website A site that provides users online tools for
A website that provides opportunities for the customers communication and sharing information on common
and the business to communicate and share interests
information
 Attractors
Website features that attract and interact with visitors
in the target stakeholder group

17 18

4.3 Building or acquiring a website 4.3 Building or acquiring a website

 Building a website
 Steps in Building a Website
1. Select a Web host.
2. Register a domain name.
3. Create and manage content.
4. Design the website.
5. Construct and test the website.
6. Market and promote the website.

19 20
4.5 Content creation, delivery, and management 4.5 Content creation, delivery, and management

 Primary and Secondary Content  content management

• cross-selling The process of adding, revising, and removing content from
Offering similar or complementary products and services a website to keep content fresh, accurate, compelling, and
to increase sales credible
• up-selling • Content Testing and Updating
Offering an upgraded version of the product in order to • Measuring Content Quality
boost sales and profit • Pitfalls of Content Management
• Promotion • Content Removal
• Comment • Content Management Software

21 22

4.6 Website design 4.6 Website design

 Guidelines for a successful Website:
1. Build it for users (useful for the user, not
necessarily the company).
2. Make it useful (e.g., usability test).
3. Make information easy to find.
4. Accommodate all users, including those with
disabilities.
5. Build a comprehensive, responsive, and effective
site.
6. Measure the site against the best of its peer group.
7. Build trust; be up front about security, privacy, and
marketing policies.
8. Assign ownership to users, but work as a team with
the technical people.
9. Set priorities; do the most beneficial stuff first.
10.Watch for new developments and encourage
innovation.

23 24
4.6 Website design 4.6 Website design

 information architecture
How the site and its Web pages are organized, labeled,
and navigated to support browsing and searching
throughout the website

25 26

4.6 Website design 4.6 Website design

 SITE NAVIGATION
• site navigation
Aids that help visitors find the information they
need quickly and easily
• Site Map and Navigation

27 28
4.6 Website design 4.7 Providing e-commerce support services

 PERFORMANCE (SPEED)  WHO BUILDS THE WEBSITE?

 COLORS AND GRAPHICS  PAYMENTS: ACCEPTING CREDIT CARDS
 usability (of website) • card-not-present (CNP) transaction
The quality and usefulness of the user’s experience when A credit card transaction in which the merchant
interacting with the website does not verify the customer’s signature
• What Annoys EC Customers? (poor search,
obsolete content,…)

29 30

4.7 Providing e-commerce support services 4.7 Providing e-commerce support services

 WEBSITE PROMOTION • search engine optimization (SEO)

 Internal Website Promotion The application of strategies intended to position a
• signature file website at the top of Web search engines
A simple text message an e-mail program  CUSTOMER RELATIONSHIP MANAGEMENT
automatically adds to outgoing messages • Using Content to Build Customer Relationships
• Web analytics
The measurement, collection, analysis, and
reporting of Internet data for the purposes of
understanding and optimizing Web usage

31 32
4.8 Opening a webstore 4.8 Opening a webstore

 OPTIONS FOR ACQUIRING WEBSTORES  Selecting a Development Option. Consider:

• Build them from scratch • Customers (target customers, customer loyalty,…)
• Build them from components • Merchandising (kinds of products or services)
• Build with templates (storebuilders) • Sales service (warranties, refund,…)
• Promotion (discounts, coupons,…)
• Transaction processing (real time->taxes, shipping,
payments,…)
• Marketing data and analysis (collect customer data -
> advertising trends)
• Branding (refinforce -> image of products)

33 34

4.9 Building an e-commerce presence 4.9 Building an e-commerce presence

E-commerce Presence Map Building an E-commerce Site: A Systematic Approach

An e-commerce
 Most important management challenges:
presence requires 1. Developing a clear understanding of business objectives
firms to consider the
2. Knowing how to choose the right technology to achieve
four different types of
those objectives
presence, with
specific platforms and  Main factors to consider
activities associated • Management
with each. • Hardware architecture
• Software
• Design
• Telecommunications
• Human resources

35 36
4.9 Building an e-commerce presence 4.9 Building an e-commerce presence

Planning: The Systems Development Life Cycle System Analysis/Planning

 Methodology for understanding business objectives of a system  Business objectives:
and designing an appropriate solution • List of capabilities you want your site to have
 Five major steps:  System functionalities:
• Systems analysis/planning • List of information system capabilities needed to achieve
• Systems design business objectives
• Building the system  Information requirements:
• Testing • Information elements that system must produce in order to
• Implementation achieve business objectives

37 38

4.9 Building an e-commerce presence 4.9 Building an e-commerce presence

Table 4.2 System Analysis, Business Objectives, System Table 4.2 System Analysis, Business Objectives, System
Functionalities, and Information Requirements for a Typical E- Functionalities, and Information Requirements for a Typical E-
commerce Site (1 of 2) commerce Site (2 of 2)
Business Objective System Functionality Information Requirements Business Objective System Functionality Information Requirements
Display goods Digital Catalog Dynamic text and graphics catalog Provide after-sale Sales database Customer I D, product, date,
Provide product information Product database Product description, stocking numbers, customer support payment, shipment date
inventory levels
Coordinate Ad server, e-mail Site behavior log of prospects and
Personalize/customize Customer on-site Site log for every customer visit; data marketing/advertising server, e-mail, customers linked to e-mail and
product tracking mining capability to identify common campaign manager, ad banner ad campaigns
customer paths and appropriate responses
banner manager
Engage customers in On-site blog; user Software with blogging and community
conversations forums forum functionality Understand marketing Site tracking and Number of unique visitors, pages
effectiveness reporting system visited, products purchased,
Execute a transaction Shopping Secure credit card clearing; multiple
identified by marketing campaign
cart/payment system payment options
Accumulate customer Customer database Name, address, phone, and e-mail for all Provide production and Inventory management Product and inventory levels,
information customers; online customer registration supplier links system supplier ID and contact, order
quantity data by product

39 40
4.9 Building an e-commerce presence
Systems Design: Hardware and Software Platforms
 System design specification:
• Description of main components of a system and their
relationship to one another
 Two components of system design:
• Logical design
• Data flow diagrams, processing functions, databases
• Physical design
• Specifies actual physical, software components,
models, and so on
41
4.9 Building an e-commerce presence
Figure 4.7 Choices in Building and Hosting
43
4.9 Building an e-commerce presence
Building the System: In-House Versus Outsourcing
 Outsourcing: Hiring vendors to provide services involved in
building site
 Build own versus outsourcing:
• Build your own requires team with diverse skill set; choice of
software tools; both risks and possible benefits
 Host own versus outsourcing
• Hosting: Hosting company responsible for ensuring site is
accessible 24/7, for monthly fee
• Co-location: Firm purchases or leases web server (with control
over its operation), but server is located at vendor’s facility
42
4.9 Building an e-commerce presence
Testing the System
 Testing
• Unit testing
• System testing
• Acceptance testing
44
4.9 Building an e-commerce presence 4.10 Một số điểm quan trọng về kinh doanh online

Implementation, Maintenance, and Optimization

2. Hệ
 Systems break down unpredictably thống
 Maintenance is ongoing
1. Chiến
 Maintenance costs: Similar to development costs lược
• A $40K e-commerce site may require $40K annually to
upkeep 3. Qui trình
 Benchmarking kinh doanh
online

4. Công
cụ

45 46

4.10 Một số điểm quan trọng về kinh doanh online 4.10 Một số điểm quan trọng về kinh doanh online
 Chiến lược
FACE
ADS+ADWORDS+ VIẾT BÀI ĐỂ LÊN MXH: HIỆN DIỆN+CHIA  Website thương hiệu
SEO+ZALO TOP GOOGLE SẺ GIÁ TRỊ=TÍN NHIỆM
 10 - 100 site vệ tinh (Landing page)
 Email auto responder
 Fanpage Facebook + Remarketing
Hệ thống
 Youtube Chanel
 Pinterest

VIẾT BÀI CHO

…
CL 5B: BẠN+BÀN+
KH->CHỐT SALE BAN+BÁN+BÈ

47 48
4.10 Một số điểm quan trọng về kinh doanh online 4.10 Một số điểm quan trọng về kinh doanh online
1. Lựa chọn thị trường ngách
 Nhu cầu đủ lớn 1. Phân tích
 Xu hướng tăng  Google Keyword Planner
 Ít cạnh tranh  Google trends
2. Thiết kế và xây dựng website  Google search box
 Tối ưu người dùng 2. Làm website/Landing page
 Website phải chuẩn SEO  Blogger
3. Viết bài PR bán hàng đạt chuẩn SEO  Wordpress
 Đăng lên Web 3. Email responder CSKH tự động
 Đăng lên diễn đàn  Webtin
Qui trình kinh doanh online  Đăng lên sàn thường mại điện tử Công cụ hỗ trợ  Madmimi
 Đăng lên Fanpage, G+ kinh doanh online  Get Response
4. Tăng TRAFFIC=Money 4. Quảng cáo
 Làm SEO  Face ADS + Remarketing
 Chạy QC Face  ADWORDS + Remarketing
 Chạy QC ADWORD 5. VIDEO
 Email marketing  Youtube
5. Chăm sóc KH: LEADS=Money  Viva Video
 Email autoresponder 6. Làm SEO
 Tương tác trên Face
6. Upsale; Email Auto
49 50

All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2012 Pearson Education, Inc.

Publishing as Prentice Hall

51