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
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 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
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
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
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
Contact information is critical!
• 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
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?
• What happens when you have multiple webs and locations?
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Are HTML editors useful tools?
• Not really (tags, long file names, etc.) • Do you want to learn another word processor?
• I use a combination of Word and WordPad • You still end up adjusting the code manually • WYS is not always WYG!
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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
Maybe consider dynamic content technologies • Cold Fusion • Active Server Pages • Other database-driven webs Caracas 4/98 (c) 1998 David Strom, Inc. 105
Questions?
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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
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
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
Challenges • Most say that eCommerce is taking off, just differ on the rate!
• How do we convince the general public that they will really like eCommerce?
• Focus initially has been on business-to business uses Caracas 4/98 (c) 1998 David Strom, Inc. 110
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
Adoption Curves • Credit cards, ATMs: 10 years • Cell phones: 15 years • TV: 25 years • VCRs: 30 years • Internet usage: <10 years!!
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Different Types of Internet Marketing • Demand creation • Consumer pull • Provider push Caracas 4/98 (c) 1998 David Strom, Inc. 113
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
“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.
• Interactive and transactional ads become more popular Caracas 4/98 (c) 1998 David Strom, Inc. 115
“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...
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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
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
What Becomes eCommerce Success?
• 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
Overview of eCommerce Market • Predictions • Success factors • Five principles Caracas 4/98 (c) 1998 David Strom, Inc. 120
eCommerce Revenue Predictions are Wide-Ranging
Source 1996 (B$US) 2000 est. (B$ US) IDC Forrester Jupiter Dataquest $2.2
1.4
.7
6.4
94 117 15.6
56
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And Not Very Believable • IDC says the web will become a mass market in the US by 12/98!
• With 100 million users!
• Let’s not confuse web users with eCommerce BUYERS!
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Let’s Keep Our Perspective • Size of US movie industry -- $6B!
• Size of adult video rentals - $6B!
• Total US music sales -- $6B!
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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
Then there is Disney.com
• Web site Daily Blast signing up 15k members/month • Sales via web are equal to 3x-5x of physical Disney store!
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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.”
From Interactive Week
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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
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
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
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
First Problem: • None of these translate on the ‘net!
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Now Try to Agree on Definitions for Web Stores • What determines a good location?
– Position on a search page – Nearness to popular destination – Ad on a popular server • What determines branding?
– Memorable domain name – Popular search category destination Caracas 4/98 (c) 1998 David Strom, Inc. 132
An Example of bad location: Montana Meats •
www.imt.net/~lingerie/buffalo/buff alo.html
• Can’t they afford their own domain name?
• www.company.com/~anything is BAD NEWS!
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Another Case: Buying Toner and Batteries •
www.cartridgesusa.com, www.batterybarn.com
• Catalog shows pictures of parts • Easy to find relevant item • But payment acknowledgement incomplete Caracas 4/98 (c) 1998 David Strom, Inc. 134
Determining Traffic • Hard to do -- is it hits, page views, registered users?
• [HITS = How Idiots Track Success] • Hard to measure -- do you count gifs? Use log files? • No general agreement on any metrics!
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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
One Working Definition of Success: • SURVIVAL!
• If a site is still running after 12 months, and getting more traffic, it is a success.
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Does a site actually have to sell something?
• Many actual eCommerce sites don’t do the complete transaction (Cisco) • Require faxes or telephone calls!
• 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
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
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!
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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
AMP
connect.ampincorporated.com
Caracas 4/98 (c) 1998 David Strom, Inc. 142
AMP Connect (con’t) • And can set to list parts that are available in specific countries!
• 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
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
Silicon Investor
www.techstocks.com
• Difficult to find anything • Incomplete database of companies • Companies are arranged poorly Caracas 4/98 (c) 1998 David Strom, Inc. 145
First Principle of eCommerce: • It is easy to find what you are selling!
Caracas 4/98 (c) 1998 David Strom, Inc. 146
Amazon.com
• Services frequent readers with a variety of programs – Editorial comments – If you liked this book, you’ll like...
– 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
Amazon Caracas 4/98 (c) 1998 David Strom, Inc. 148
Update your directories!
• • This one is almost a year old
www.asiapage.com/alist.html#jewellery
Caracas 4/98 (c) 1998 David Strom, Inc. 149
Non-secure servers • • Many SG sites collect credit cards on them
www.asiapage.com/goodwood
Caracas 4/98 (c) 1998 David Strom, Inc. 150
Second Principle of eCommerce: • Deliver solid service!
Caracas 4/98 (c) 1998 David Strom, Inc. 151
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!
Caracas 4/98 (c) 1998 David Strom, Inc. 152
Dell Caracas 4/98 (c) 1998 David Strom, Inc. 153
Canadiantire.com
• 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
Third Principle of eCommerce: • Individual customization is key Caracas 4/98 (c) 1998 David Strom, Inc. 155
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
BMW Caracas 4/98 (c) 1998 David Strom, Inc. 157
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
How NOT to Design a Payment Screen •
www.netmar.com/new/norderform.shtml
Caracas 4/98 (c) 1998 David Strom, Inc. 159
How NOT to take advantage of bandwidth •
www.clickdiz.com
• Two different pages, one for SG ONE, one for all others • But SG ONE page has just heavy graphics - why?
Caracas 4/98 (c) 1998 David Strom, Inc. 160
A better example: fishing licenses • Simple, quick, and does the job with a • minimum of clutter
www.permit.com
Caracas 4/98 (c) 1998 David Strom, Inc. 161
Fourth Principle of eCommerce: • Make navigation simple!
• Use small graphics, site maps, indexes • Avoid clutter, frames Caracas 4/98 (c) 1998 David Strom, Inc. 162
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
ICES
www.icesinc.com
Caracas 4/98 (c) 1998 David Strom, Inc. 164
Fifth Principle of eCommerce: • Business-to-business focus Caracas 4/98 (c) 1998 David Strom, Inc. 165
Popular eCommerce Suites Vendor, Product Version Price Platform ICat Elec Comm Suite IBM Net.Commerce
Microsoft SiteServer Commerce 3.0
3.0
3.0
$9000 $5000 $5000 NT, 95 NT, AIX NT Caracas 4/98 (c) 1998 David Strom, Inc. 166
Popular eCommerce Suites (con’t) Vendor, Product Version Price Platform OM Transact Open Market Intershop Online Intershop WebSite Pro O'Reilly 2.3
3.0
2.0
$250,000 Unix $5000 $800 NT Unix NT, 95 Caracas 4/98 (c) 1998 David Strom, Inc. 167
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
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
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
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
Putting Together Your Own Solution • Mercantec shopping cart • SQL Server database • ICVerify payment system • WebCatalog • IIS web server • Total price: 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! Caracas 4/98 (c) 1998 David Strom, Inc. 173 • Review • Q&A • • • David Strom +1 516 944 3407 david@strom.com Caracas 4/98 (c) 1998 David Strom, Inc. 174Thanks!