Strategic Planning for Web Technology

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Transcript Strategic Planning for Web Technology

Strategic Planning for Web Technology David Strom [email protected]

Port Washington, NY, USA +1 516 944 3407

Agenda • Intranets and extranets • Guide to push technologies • Managing your web site • Introduction to eCommerce Caracas 4/98 (c) 1998 David Strom, Inc. 2

Topic 1: Intranets and extranets • Intranets everywhere • Distinguishing characteristics • Factors that make a successful extranet • Tax News Network case study Caracas 4/98 (c) 1998 David Strom, Inc. 3

Intranets • 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. 4

Intranets everywhere • Mentioned hundreds of times in trade pubs • Now a "section" in most trade mags • Weekly conferences • Fedex example getting tiresome Caracas 4/98 (c) 1998 David Strom, Inc. 5

Some definitions • 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. 6

How Intranets benefit corporations • 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. 7

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 Caracas 4/98 (c) 1998 David Strom, Inc. 8

Differences between Intranets and extranets • 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 Caracas 4/98 (c) 1998 David Strom, Inc. 9

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. 10

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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Picking the right Intranet platform • Ease of setup/configuration • Functionality of OS • Integration into existing file/print services • Scalability Caracas 4/98 (c) 1998 David Strom, Inc. 12

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 Caracas 4/98 (c) 1998 David Strom, Inc. 13

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?

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Information delivery tools mediocre • 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. 15

Choices for deploying enterprise IP • 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 Caracas 4/98 (c) 1998 David Strom, Inc. 17

SNA IP issues • TN3270 • Or inside web browsers (Simware, Attachmate) • Moving information out of the host • via HTML • via SQL Caracas 4/98 (c) 1998 David Strom, Inc. 18

Other Intranet technologies • Web servers, of course • Graphics editor • Link checkers • Tracking visitors • Search tools • Animation tools Caracas 4/98 (c) 1998 David Strom, Inc. 19

Recommendations • 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 Caracas 4/98 (c) 1998 David Strom, Inc. 20

Decision points on your first Intranet • What is your purpose?

• Who is responsible for content? • How will servers be administered?

• How do they scale?

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How to manage the transition • IP deployment • Open systems expertise • Role of IS management Caracas 4/98 (c) 1998 David Strom, Inc. 22

What is your open systems expertise?

• 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 Caracas 4/98 (c) 1998 David Strom, Inc. 24

For more information • My own Intranet Information Page: www.strom.com/pubwork/intrane t.html

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Factors that make a successful extranet

• Audience • Purpose • Design • Community • Architecture choices Caracas 4/98 (c) 1998 David Strom, Inc. 26

Know your audience

• Executives, middle management, staff?

• How well do you know these people?

• Intended for your customers? New prospects?

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Understand your purpose

• Increase sales • Increase visibility • Communicate with clients • Enhance client relationships Caracas 4/98 (c) 1998 David Strom, Inc. 28

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 Caracas 4/98 (c) 1998 David Strom, Inc. 29

Members-only access

• Restrict to customers, staff, management • Keep competitors from downloading your customer file • Maintain customer privacy Caracas 4/98 (c) 1998 David Strom, Inc. 30

Create layers of information

• Different people need to know different things • Makes finding things simple • Match user with appropriate content Caracas 4/98 (c) 1998 David Strom, Inc. 31

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. 32

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?

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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?

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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. 35

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

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Turnkey product issues

• 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

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Example of extranet done right

• Coopers and Lybrand Tax News Network • www.taxnews.com

• article: www.datamation.com/PlugIn/issues/1997/november/ 11extra.html

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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. 39

TNN fee structure

• Public site is always free • Members get first month for free • Different tax association members get discounts Caracas 4/98 (c) 1998 David Strom, Inc. 40

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. 41

Questions?

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Topic 2: A guide to push technologies • Who’s left • Understanding the publishing process • Notable products • Microsoft, Netscape • Email is the answer, now what is the question?

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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. 44

Who’s out • Ifusion • Intermind • Travelling Software • Individual, Inc.

• Any off-line browser -- remember them?

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Impact of push on your network • Bandwidth • Budget • Biology Caracas 4/98 (c) 1998 David Strom, Inc. 46

Bandwidth • Need vendors’ proxy servers to really deploy push widely – PointCast Caching Manager, BackWeb server, etc.

• Otherwise 20-30% of your bandwidth goes away!

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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. 48

Biology: the process of push • Mechanics of publishing your channel • Platforms supported Caracas 4/98 (c) 1998 David Strom, Inc. 49

Understanding the publishing process • 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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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.

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What is the business model?

• Pervasive tuners • Extranets, high-end publishing • Intranets, custom publishing • Electronic software distribution • Remote desktop maintenance • Selling screensaver advertising Caracas 4/98 (c) 1998 David Strom, Inc. 52

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 Caracas 4/98 (c) 1998 David Strom, Inc. 53

Common push elements • Channel • Desktop replacement for screen saver • Push server Caracas 4/98 (c) 1998 David Strom, Inc. 54

What clients are supported?

• 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. 55

What servers are needed?

• Usually NT, sometimes Solaris • Sometimes more than one machine (BackWeb, Diffusion) Caracas 4/98 (c) 1998 David Strom, Inc. 56

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. 57

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!

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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. 59

My short list of notable products • Backweb • Marimba • Wayfarer/Incisa Caracas 4/98 (c) 1998 David Strom, Inc. 60

Backweb • Two businesses: distributing a broad tuner for subscribing to public channels, and developing a customizable Intranet product.

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The many Backweb pieces • 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. 62

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. 63

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

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CDF Example

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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

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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!

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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 Caracas 4/98 (c) 1998 David Strom, Inc. 69

For the complete list • Push players, past and present • See strom.com/imc/t4a.html

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Questions?

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Topic 3: Managing your web site • Picking the right ISP • Tracking your visitors • Search engine strategies • Managing and developing web content Caracas 4/98 (c) 1998 David Strom, Inc. 72

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. 73

Trying to figure out the fees • Inbound, outbound charges • Per page or per megabyte • Monthly fees • Other charges: maintenance, upgrades, scripts Caracas 4/98 (c) 1998 David Strom, Inc. 74

Look carefully at usage (variable) charges • KB/month/disk space • KB/Month transferred • eCommerce transactions • Hits surcharges • Other things: hidden charges Caracas 4/98 (c) 1998 David Strom, Inc. 75

Hidden charges • Changing links from absolute to relative • File name changes • Adding user accounts • File transfer charges • Other administrative charges Caracas 4/98 (c) 1998 David Strom, Inc. 76

What to look for in an ISP • Dedicated server • Backbone connection to US • Root access, CGIs • Number of webs they support • Staff experience • References Caracas 4/98 (c) 1998 David Strom, Inc. 77

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 Caracas 4/98 (c) 1998 David Strom, Inc. 78

Some US-based examples • • • •

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

Provider IBM Earthlink Setup fee (US$) Monthly fee (US$) 260 624 55 194 Plan name, payment options Bronze, credit cards Premium Plus Netcom Mindspring 450 175 300 324 Commerce Site, credit cards Commercial Advantage, credit cards, Cybercash

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Price Comparison assumptions • 10 Mb disk storage • Single email account • InterNIC US$100 fee included for “.com” domain name Caracas 4/98 (c) 1998 David Strom, Inc. 81

Understanding your connection • Do traceroute to microsoft.com

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Why switch from ISP to on-site hosting?

• More direct control • Management needs vs. server access • Need for multiple servers • Combining Internet and intranets • No longer cost-effective Caracas 4/98 (c) 1998 David Strom, Inc. 83

My recommendation: split your needs • Access to the Internet • Host your content • Maintain your corporate identity Caracas 4/98 (c) 1998 David Strom, Inc. 84

Tracking your visitors • Different types of logs • Log formats • Tools to use Caracas 4/98 (c) 1998 David Strom, Inc. 85

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 Caracas 4/98 (c) 1998 David Strom, Inc. 86

Different types of log formats • Common log format • Extended log format • IIS log format Caracas 4/98 (c) 1998 David Strom, Inc. 87

Things you can learn from your logs • Hits per day • Domain origins • Path people (search engines) take to your web • Problem areas, broken links Caracas 4/98 (c) 1998 David Strom, Inc. 88

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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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 Caracas 4/98 (c) 1998 David Strom, Inc. 90

Tools available • Built-in, bundled analyzers • Sites that capture registrations • Build your own from perl Caracas 4/98 (c) 1998 David Strom, Inc. 91

Recommended tools • www.WebTrends.com

• www.MarketWave.com

• Microsoft Site Server Express w/ IIS Caracas 4/98 (c) 1998 David Strom, Inc. 92

Search engine strategies • What are they • Different tools available • How they work and don’t work Caracas 4/98 (c) 1998 David Strom, Inc. 93

What is a search engine?

• Program, indexing tool • Intelligent agent • Not always accurate Caracas 4/98 (c) 1998 David Strom, Inc. 94

Different kinds of tools • External tools wander through many sites for the public • Internal tools for your own purposes Caracas 4/98 (c) 1998 David Strom, Inc. 95

Dealing with search engine behavior • Some use , some use • Keep descriptions at top of your home page short and sweet • Web Review article: webreview.com/97/10/17/webmaster Caracas 4/98 (c) 1998 David Strom, Inc. 96</p> <a id="p97" href="#"></a> <p>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/ Caracas 4/98 (c) 1998 David Strom, Inc. 97</p> <a id="p98" href="#"></a> <p>Managing and developing web content • Find a managing editor • Pick your plan for updates • Stage a test web • Consider other technologies Caracas 4/98 (c) 1998 David Strom, Inc. 98</p> <a id="p99" href="#"></a> <p>Find a good managing editor • Understands English syntax, grammar • Detail-oriented • Knows enough HTML to be dangerous • Understands the differences between print and electronic publishing Caracas 4/98 (c) 1998 David Strom, Inc. 99</p> <a id="p100" href="#"></a> <p>Standardize on the right content • Navigation tools, icons • Images, colors, sizes • Type, backgrounds, white space usage • Contact info and placement of links Caracas 4/98 (c) 1998 David Strom, Inc. 100</p> <a id="p101" href="#"></a> <p>Contact information is critical!</p> <p>• Same format • Every page • So people can find you in the real world • Should include phone, fax, email, postal address Caracas 4/98 (c) 1998 David Strom, Inc. 101</p> <a id="p102" href="#"></a> <p>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?</p> <p>• What happens when you have multiple webs and locations?</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 102</p> <a id="p103" href="#"></a> <p>Are HTML editors useful tools?</p> <p>• Not really (tags, long file names, etc.) • Do you want to learn another word processor?</p> <p>• I use a combination of Word and WordPad • You still end up adjusting the code manually • WYS is not always WYG!</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 103</p> <a id="p104" href="#"></a> <p>Staging a test web • Check and validate your links, spelling • See your site from different browsers • Make sure navigation makes sense • Mirror your web locally for backup Caracas 4/98 (c) 1998 David Strom, Inc. 104</p> <a id="p105" href="#"></a> <p>Maybe consider dynamic content technologies • Cold Fusion • Active Server Pages • Other database-driven webs Caracas 4/98 (c) 1998 David Strom, Inc. 105</p> <a id="p106" href="#"></a> <p>Questions?</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 106</p> <a id="p107" href="#"></a> <p>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 Caracas 4/98 (c) 1998 David Strom, Inc. 107</p> <a id="p108" href="#"></a> <p>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 Caracas 4/98 (c) 1998 David Strom, Inc. 108</p> <a id="p109" href="#"></a> <p>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 Caracas 4/98 (c) 1998 David Strom, Inc. 109</p> <a id="p110" href="#"></a> <p>Challenges • Most say that eCommerce is taking off, just differ on the rate!</p> <p>• How do we convince the general public that they will really like eCommerce?</p> <p>• Focus initially has been on business-to business uses Caracas 4/98 (c) 1998 David Strom, Inc. 110</p> <a id="p111" href="#"></a> <p>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 Caracas 4/98 (c) 1998 David Strom, Inc. 111</p> <a id="p112" href="#"></a> <p>Adoption Curves • Credit cards, ATMs: 10 years • Cell phones: 15 years • TV: 25 years • VCRs: 30 years • Internet usage: <10 years!!</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 112</p> <a id="p113" href="#"></a> <p>Different Types of Internet Marketing • Demand creation • Consumer pull • Provider push Caracas 4/98 (c) 1998 David Strom, Inc. 113</p> <a id="p114" href="#"></a> <p>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 Caracas 4/98 (c) 1998 David Strom, Inc. 114</p> <a id="p115" href="#"></a> <p>“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.</p> <p>• Interactive and transactional ads become more popular Caracas 4/98 (c) 1998 David Strom, Inc. 115</p> <a id="p116" href="#"></a> <p>“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...</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 116</p> <a id="p117" href="#"></a> <p>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-on one, hence the value of direct marketing Caracas 4/98 (c) 1998 David Strom, Inc. 117</p> <a id="p118" href="#"></a> <p>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 Caracas 4/98 (c) 1998 David Strom, Inc. 118</p> <a id="p119" href="#"></a> <p>What Becomes eCommerce Success?</p> <p>• Overview of eCommerce market • Review physical storefront success factors • Propose some definitions • Define success for the web • Draw up five eCommerce principles Caracas 4/98 (c) 1998 David Strom, Inc. 119</p> <a id="p120" href="#"></a> <p>Overview of eCommerce Market • Predictions • Success factors • Five principles Caracas 4/98 (c) 1998 David Strom, Inc. 120</p> <a id="p121" href="#"></a> <p>eCommerce Revenue Predictions are Wide-Ranging</p> <p><b>Source 1996 (B$US) 2000 est. (B$ US) IDC Forrester Jupiter Dataquest $2.2</b></p> <p><b>1.4</b></p> <p><b>.7</b></p> <p><b>6.4</b></p> <p><b>94 117 15.6</b></p> <p><b>56</b></p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 121</p> <a id="p122" href="#"></a> <p>And Not Very Believable • IDC says the web will become a mass market in the US by 12/98!</p> <p>• With 100 million users!</p> <p>• Let’s not confuse web users with eCommerce BUYERS!</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 122</p> <a id="p123" href="#"></a> <p>Let’s Keep Our Perspective • Size of US movie industry -- $6B!</p> <p>• Size of adult video rentals - $6B!</p> <p>• Total US music sales -- $6B!</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 123</p> <a id="p124" href="#"></a> <p>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 Caracas 4/98 (c) 1998 David Strom, Inc. 124</p> <a id="p125" href="#"></a> <p>Then there is Disney.com</p> <p>• Web site Daily Blast signing up 15k members/month • Sales via web are equal to 3x-5x of physical Disney store!</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 125</p> <a id="p126" href="#"></a> <p>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.”</p> <p><b>From Interactive Week</b></p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 126</p> <a id="p127" href="#"></a> <p>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 Caracas 4/98 (c) 1998 David Strom, Inc. 127</p> <a id="p128" href="#"></a> <p>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 Caracas 4/98 (c) 1998 David Strom, Inc. 128</p> <a id="p129" href="#"></a> <p>Let’s Learn From the “Real World” • Compare what works for physical stores • Try to extend to the web Caracas 4/98 (c) 1998 David Strom, Inc. 129</p> <a id="p130" href="#"></a> <p>Critical Success Factors for Physical Storefronts • Location • Branding • Good service • Good product selection • Proper pricing and margins • Traffic Caracas 4/98 (c) 1998 David Strom, Inc. 130</p> <a id="p131" href="#"></a> <p>First Problem: • None of these translate on the ‘net!</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 131</p> <a id="p132" href="#"></a> <p>Now Try to Agree on Definitions for Web Stores • What determines a good location?</p> <p>– Position on a search page – Nearness to popular destination – Ad on a popular server • What determines branding?</p> <p>– Memorable domain name – Popular search category destination Caracas 4/98 (c) 1998 David Strom, Inc. 132</p> <a id="p133" href="#"></a> <p>An Example of bad location: Montana Meats •</p> <p><b>www.imt.net/~lingerie/buffalo/buff alo.html</b></p> <p>• Can’t they afford their own domain name?</p> <p>• www.company.com/~anything is BAD NEWS!</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 133</p> <a id="p134" href="#"></a> <p>Another Case: Buying Toner and Batteries •</p> <p><b>www.cartridgesusa.com, www.batterybarn.com</b></p> <p>• Catalog shows pictures of parts • Easy to find relevant item • But payment acknowledgement incomplete Caracas 4/98 (c) 1998 David Strom, Inc. 134</p> <a id="p135" href="#"></a> <p>Determining Traffic • Hard to do -- is it hits, page views, registered users?</p> <p>• [HITS = How Idiots Track Success] • Hard to measure -- do you count gifs? Use log files? • No general agreement on any metrics!</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 135</p> <a id="p136" href="#"></a> <p>Traditional Advertising Doesn’t Apply Anymore • Can’t measure anything • Every site has its own banner sizes • The Web is not TV Caracas 4/98 (c) 1998 David Strom, Inc. 136</p> <a id="p137" href="#"></a> <p>One Working Definition of Success: • SURVIVAL!</p> <p>• If a site is still running after 12 months, and getting more traffic, it is a success.</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 137</p> <a id="p138" href="#"></a> <p>Does a site actually have to sell something?</p> <p>• Many actual eCommerce sites don’t do the complete transaction (Cisco) • Require faxes or telephone calls!</p> <p>• Some merely have catalogs • A good example: Singapore Power Authority www.spower.com.sg/readmeter.cgi?cmd=form Caracas 4/98 (c) 1998 David Strom, Inc. 138</p> <a id="p139" href="#"></a> <p>Good eCommerce Examples • Easy to find merchandize • Good service • Individual customization is key • Simple navigation • Business-to-business focus Caracas 4/98 (c) 1998 David Strom, Inc. 139</p> <a id="p140" href="#"></a> <p>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!</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 140</p> <a id="p141" href="#"></a> <p>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 Caracas 4/98 (c) 1998 David Strom, Inc. 141</p> <a id="p142" href="#"></a> <p>AMP </p> <p><b>connect.ampincorporated.com</b></p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 142</p> <a id="p143" href="#"></a> <p>AMP Connect (con’t) • And can set to list parts that are available in specific countries!</p> <p>• 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 Caracas 4/98 (c) 1998 David Strom, Inc. 143</p> <a id="p144" href="#"></a> <p>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</p> <a id="p145" href="#"></a> <p>Silicon Investor </p> <p><b>www.techstocks.com</b></p> <p>• Difficult to find anything • Incomplete database of companies • Companies are arranged poorly Caracas 4/98 (c) 1998 David Strom, Inc. 145</p> <a id="p146" href="#"></a> <p>First Principle of eCommerce: • It is easy to find what you are selling!</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 146</p> <a id="p147" href="#"></a> <p>Amazon.com</p> <p>• Services frequent readers with a variety of programs – Editorial comments – If you liked this book, you’ll like...</p> <p>– 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 Caracas 4/98 (c) 1998 David Strom, Inc. 147</p> <a id="p148" href="#"></a> <p>Amazon Caracas 4/98 (c) 1998 David Strom, Inc. 148</p> <a id="p149" href="#"></a> <p>Update your directories!</p> <p>• • This one is almost a year old</p> <p><b>www.asiapage.com/alist.html#jewellery</b></p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 149</p> <a id="p150" href="#"></a> <p>Non-secure servers • • Many SG sites collect credit cards on them</p> <p><b>www.asiapage.com/goodwood</b></p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 150</p> <a id="p151" href="#"></a> <p>Second Principle of eCommerce: • Deliver solid service!</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 151</p> <a id="p152" href="#"></a> <p>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!</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 152</p> <a id="p153" href="#"></a> <p>Dell Caracas 4/98 (c) 1998 David Strom, Inc. 153</p> <a id="p154" href="#"></a> <p>Canadiantire.com</p> <p>• eFlyer uses email notification along with web forms • Customize exactly what coupons and deals are sent to you Caracas 4/98 (c) 1998 David Strom, Inc. 154</p> <a id="p155" href="#"></a> <p>Third Principle of eCommerce: • Individual customization is key Caracas 4/98 (c) 1998 David Strom, Inc. 155</p> <a id="p156" href="#"></a> <p>BMW Motors • Example of what not to do • Use gratuitous graphics • Cheesy low-res videos • Toys, not tools Caracas 4/98 (c) 1998 David Strom, Inc. 156</p> <a id="p157" href="#"></a> <p>BMW Caracas 4/98 (c) 1998 David Strom, Inc. 157</p> <a id="p158" href="#"></a> <p>Compare with Subaru • Find specific information about each car • Can price options to your particular needs Caracas 4/98 (c) 1998 David Strom, Inc. 158</p> <a id="p159" href="#"></a> <p>How NOT to Design a Payment Screen •</p> <p><b>www.netmar.com/new/norderform.shtml</b></p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 159</p> <a id="p160" href="#"></a> <p>How NOT to take advantage of bandwidth •</p> <p><b>www.clickdiz.com</b></p> <p>• Two different pages, one for SG ONE, one for all others • But SG ONE page has just heavy graphics - why?</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 160</p> <a id="p161" href="#"></a> <p>A better example: fishing licenses • Simple, quick, and does the job with a • minimum of clutter</p> <p><b>www.permit.com</b></p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 161</p> <a id="p162" href="#"></a> <p>Fourth Principle of eCommerce: • Make navigation simple!</p> <p>• Use small graphics, site maps, indexes • Avoid clutter, frames Caracas 4/98 (c) 1998 David Strom, Inc. 162</p> <a id="p163" href="#"></a> <p>Int’l Commerce Exchange System • Matches overstocked sellers with buyers • B2B exclusively • Uses faxes to notify potential customers Caracas 4/98 (c) 1998 David Strom, Inc. 163</p> <a id="p164" href="#"></a> <p>ICES </p> <p><b>www.icesinc.com</b></p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 164</p> <a id="p165" href="#"></a> <p>Fifth Principle of eCommerce: • Business-to-business focus Caracas 4/98 (c) 1998 David Strom, Inc. 165</p> <a id="p166" href="#"></a> <p>Popular eCommerce Suites Vendor, Product Version Price Platform ICat Elec Comm Suite IBM Net.Commerce</p> <p>Microsoft SiteServer Commerce 3.0</p> <p>3.0</p> <p>3.0</p> <p>$9000 $5000 $5000 NT, 95 NT, AIX NT Caracas 4/98 (c) 1998 David Strom, Inc. 166</p> <a id="p167" href="#"></a> <p>Popular eCommerce Suites (con’t) Vendor, Product Version Price Platform OM Transact Open Market Intershop Online Intershop WebSite Pro O'Reilly 2.3</p> <p>3.0</p> <p>2.0</p> <p>$250,000 Unix $5000 $800 NT Unix NT, 95 Caracas 4/98 (c) 1998 David Strom, Inc. 167</p> <a id="p168" href="#"></a> <p>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 Caracas 4/98 (c) 1998 David Strom, Inc. 168</p> <a id="p169" href="#"></a> <p>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 Caracas 4/98 (c) 1998 David Strom, Inc. 169</p> <a id="p170" href="#"></a> <p>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 Caracas 4/98 (c) 1998 David Strom, Inc. 170</p> <a id="p171" href="#"></a> <p>Databases Supported in Each Suite • Microsoft: SQL Server • IBM: DB2 • iCat: 4D, Sybase SQL Anywhere • WebSite: Access • Intershop: Sybase SQL 11 Caracas 4/98 (c) 1998 David Strom, Inc. 171</p> <a id="p172" href="#"></a> <p>Putting Together Your Own Solution • Mercantec shopping cart • SQL Server database • ICVerify payment system • WebCatalog • IIS web server • Total price: <US$10,000 Caracas 4/98 (c) 1998 David Strom, Inc. 172</p> <a id="p173" href="#"></a> <p>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!</p> <p>Caracas 4/98 (c) 1998 David Strom, Inc. 173</p> <a id="p174" href="#"></a> <h2>Thanks!</h2> <p>• Review • Q&A • • •</p> <p><b>David Strom +1 516 944 3407 david@strom.com</b></p> <p>Caracas 4/98 (c) 1998 David 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