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.

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Learning Objectives Learning Objectives

6. Understand the importance of providing and managing 1. Starting a new online business (functions of systems)

content and describe how to accomplish this.

2. Creating a new company or adding an online project
7. Evaluate websites on design criteria, such as appearance,
navigation, consistency, and performance. 3. Transforming to an e-business

8. Understand how search engine optimization may help a 4. Building or acquiring a website (classification of websites, steps in
website obtain high placement in search engines. building a website)

A successful
9. Understand how to provide some support e-services. online business
5. Content creation, delivery and management (primary and second
content,...)
and EC projects
10. Understand the process of building a webstore. 6. Website design

11. Understand building an e-commerce presence

7. Providing e-commerce support service (payment, SEO, CRM,…)

8. Opening a webstore

9. Building an e-commerce presence

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4.1 Getting into E-Commerce and Starting a new Online 4.1 Getting into E-Commerce and Starting a new Online
Business Business
 Getting into E-commerce  An E-startup is startup: To create a successful online
 Starting a new online business business
 Adding e-commerce initiative(s) to an existing business  To setup the website
 Transforming to an e-business  To get a domain name
 Opening a webstore  E-commerce
 Starting a new online business (success and failure)  To manage the website
 E-procurement  To manage accounting and running the online business
 Selling online …
 Additional marketing channel
…

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4.1 Getting into E-Commerce and Starting a new Online
Business
 Creating a new company or adding an online project
1. Identify a consumer or business need in the
marketplace. -> a good idea.
2. Investigate the opportunity. -> (Cost and revenue->
Business plan (feasibility and viability of a business
opportunity in the marketplace).
3. Determine the business owner’s ability to meet the
need. -> convert the opportunity into success,
business skills.
4.1 Getting into E-Commerce and Starting a new Online
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

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4.1 Getting into E-Commerce and Starting a new Online 4.1 Getting into E-Commerce and Starting a new Online
Business 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

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4.1 Getting into E-Commerce and Starting a new Online 4.2 Adding E-commerce initiatives or transforming to an e-
Business business
 Second Round Financing:  Adding EC initiatives to an existing
• Venture capital (VC) • A webstore (B2C and B2B)
Money invested in a business by an individual, a group • A portal -> for external and/or internal collaboration
of individuals (venture capitalists), or a funding and communication.
company in exchange for equity in the business
• E-procurement (purchase request, authorization,
 Additional Funding: A Large Partner order, delivery, payments)
 The Initial Public Offer (IPO) • Auctions and reverse auctions
• M-commerce
• Social commerce
• Others (e-training, e-CRM, e-PRM, Business model)

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4.2 Adding E-commerce initiatives or transforming to an e-
business
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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.
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4.2 Adding E-commerce initiatives or transforming to an e-
business
 Transformation to an e-business
 What Is Organizational Transformation?
• The organization’s ways of thinking and vision will
fundamentally change.
• There will be revolutionary changes to the process and
context involved in creating a new organizational vision and
rethinking business models and business strategy.
• The change must involve a substantial break from
previous ways of acting. It will likely involve discovering
and developing new opportunities and new ways of doing
things.
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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/Redesign (BPR)
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4.2 Adding E-commerce initiatives or transforming to an e- 4.2 Adding E-commerce initiatives or transforming to an e-
business 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

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4.2 Adding E-commerce initiatives or transforming to an e-

4.3 Building or acquiring a website
business
 Clasification of websites
 Informational website
A website that does little more than provide
information about the business and its products and
services
 Interactive website
A website that provides opportunities for the customers
and the business to communicate and share
information
 Attractors
Website features that attract and interact with visitors
in the target stakeholder group

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4.3 Building or acquiring a website
 Transactional website
A website that sells products and services
 collaborative website
A site that allows business partners to collaborate
 social-oriented website
A site that provides users online tools for
communication and sharing information on common
interests
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.

Buy a web host: https://azdigi.com/pro-hosting/

Buy domain name: https://tenten.vn/

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4.3 Building or acquiring a website 4.4 Content creation, delivery, and management

 Primary and Secondary Content

• cross-selling
Offering similar or complementary products and services
to increase sales
• up-selling
Offering an upgraded version of the product in order to
boost sales and profit
• Promotion
• Comment

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4.4 Content creation, delivery, and management 4.5 Website design

 Content management  Guidelines for a successful Website:

1. Build it for users (useful for the user, not
The process of adding, revising, and removing content
from a website to keep content fresh, accurate, necessarily the company).
compelling, and credible 2. Make it useful (e.g., usability test).
• Content Testing and Updating 3. Make information easy to find.
• Measuring Content Quality 4. Accommodate all users, including those with
• Pitfalls of Content Management disabilities.
• Content Removal 5. Build a comprehensive, responsive, and effective
• Content Management Software site.

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4.5 Website design 4.5 Website design

6. Measure the site against the best of its peer group.  information architecture
7. Build trust; be up front about security, privacy, and How the site and its Web pages are organized,
marketing policies. labeled, and navigated to support browsing and
8. Assign ownership to users, but work as a team with searching throughout the website
the technical people.
9. Set priorities; do the most beneficial stuff first.
10.Watch for new developments and encourage
innovation.

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4.5 Website design 4.5 Website design

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

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4.5 Website design 4.5 Website design

 PERFORMANCE (SPEED)
 COLORS AND GRAPHICS
 usability (of website)
The quality and usefulness of the user’s experience when
interacting with the website
• What Annoys EC Customers? (poor search,
obsolete content,…)

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4.6 Providing e-commerce support services 4.6 Providing e-commerce support services

 WHO BUILDS THE WEBSITE?  WEBSITE PROMOTION

 PAYMENTS: ACCEPTING CREDIT CARDS
• card-not-present (CNP) transaction
A credit card transaction in which the merchant
does not verify the customer’s signature
 Internal Website Promotion
• signature file
A simple text message an e-mail program
automatically adds to outgoing messages
• Web analytics
The measurement, collection, analysis, and
reporting of Internet data for the purposes of
understanding and optimizing Web usage

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4.6 Providing e-commerce support services 4.7 Opening a webstore

• search engine optimization (SEO)  OPTIONS FOR ACQUIRING WEBSTORES

The application of strategies intended to position a • Build them from scratch
website at the top of Web search engines • Build them from components
 CUSTOMER RELATIONSHIP MANAGEMENT • Build with templates (storebuilders)
• Using Content to Build Customer Relationships

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4.7 Opening a webstore 4.7 Opening a webstore
Building an E-commerce Site: A Systematic Approach
 Selecting a Development Option. Consider:
 Most important management challenges:
• Customers (target customers, customer loyalty,…)
• Merchandising (kinds of products or services) 1. Developing a clear understanding of business objectives
• Sales service (warranties, refund,…) 2. Knowing how to choose the right technology to achieve
those objectives
• Promotion (discounts, coupons,…)
 Main factors to consider
• Transaction processing (real time->taxes, shipping, • Management
payments,…) • Hardware architecture
• Marketing data and analysis (collect customer data - • Software
> advertising trends) • Design
• Branding (refinforce -> image of products) • Telecommunications
• Human resources

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4.7 Opening a webstore 4.7 Opening a webstore

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

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4.7 Opening a webstore 4.7 Opening a webstore
System Analysis, Business Objectives, System Functionalities, System Analysis, Business Objectives, System Functionalities,
and Information Requirements for a Typical E-commerce Site (1 and Information Requirements for a Typical E-commerce Site
of 2) (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 ID, 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

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4.7 Opening a webstore 4.7 Opening a webstore

Systems Design: Hardware and Software Platforms Building the System: In-House Versus Outsourcing
 System design specification:  Outsourcing: Hiring vendors to provide services involved in
• Description of main components of a system and their building site
relationship to one another  Build own versus outsourcing:
 Two components of system design: • Build your own requires team with diverse skill set; choice of
• Logical design software tools; both risks and possible benefits
• Data flow diagrams, processing functions, databases  Host own versus outsourcing
• Physical design • Hosting: Hosting company responsible for ensuring site is
• Specifies actual physical, software components, accessible 24/7, for monthly fee
models, and so on • Co-location: Firm purchases or leases web server (with control
over its operation), but server is located at vendor’s facility

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4.7 Opening a webstore 4.7 Opening a webstore

Figure 4.7 Choices in Building and Hosting Testing the System

 Testing
• Unit testing
• System testing
• Acceptance testing

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4.7 Opening a webstore 4.7 Opening a webstore

Implementation, Maintenance, and Optimization Total Cost of Ownership (TCO) Model

 Systems break down unpredictably • Analyzes direct and indirect costs
 Maintenance is ongoing • Hardware, software account for only about 20% of TCO
 Maintenance costs: Similar to development costs • Other costs: Installation, training, support, maintenance,
• A $40K e-commerce site may require $40K annually to infrastructure, downtime, space, and energy
upkeep • TCO can be reduced
 Benchmarking • Use of cloud services, greater centralization and
standardization of hardware and software resources

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4.8 Building an e-commerce presence 4.9 Một số điểm quan trọng về kinh doanh online
E-commerce Presence Map
2. Hệ
An e-commerce thống
presence requires
firms to consider the 1. Chiến
four different types of lược
presence, with
specific platforms and 3. Qui trình
activities associated kinh doanh
with each. online

4. Công
cụ

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4.9 Một số điểm quan trọng về kinh doanh online 4.9 Một số điểm quan trọng về kinh doanh online
 Chiến lược (chăm sóc khách hàng, chiến lược giá,
chiến lược marketing, chiến lược bán hàng,…)
 Website thương hiệu
FACE VIẾT BÀI ĐỂ LÊN MXH: HIỆN DIỆN+CHIA  10 - 100 site vệ tinh (Landing page)
ADS+ADWORDS+ SẺ GIÁ TRỊ=TÍN NHIỆM
TOP GOOGLE
SEO+ZALO  Email auto responder
 Fanpage Facebook + Remarketing
Hệ thống
 Youtube Chanel
 Pinterest
…

VIẾT BÀI CHO CL 5B: BẠN+BÀN+

KH->CHỐT SALE BAN+BÁN+BÈ

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4.9 Một số điểm quan trọng về kinh doanh online 4.9 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
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