Slide 12.

LU 12
Digital Business Service
Implementation,
Optimisation & Challenges

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.2

Learning outcomes
• Produce a plan to minimise the risks involved
with the launch phase of a digital business
application
• Define a process for the effective
optimisation of a digital business system
• Create a plan to measure and improve the
effectiveness of sell-side digital business
applications using web analytics tools

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.3

Management Issues
• What actions can we take to minimise
the risks of implementation?
• How do we select the most
appropriate systems?
• How do we achieve transition from
previous systems to a new digital
business system?
• What techniques are available to
measure and optimise our services?
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.4

Optimisation of Digital
Business Services
• Optimisation suggests a rigorous, ongoing
approach to improving the effectiveness and
efficiency of digital business services.
• Managers need to continually revisit these
questions:
o Service effectiveness. Is the service meeting business goals?
Is the experience and service delivered satisfactory for
users? Are new technology approaches or information
available that could improve the experience?
o Service efficiency. Is the operation of the system measured
through speed of response, usability and cost appropriate
to lead to an effective service? Are new technology
approaches available that could improve the system
efficiency?
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.5

System Implementation
Issues
1. Acquisition options/ techniques
2. Site implementation tools
3. Content management and
updating
4. System changeover
5. Localisation
6. Evaluation and monitoring.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.6

1. Acquisition Options
• Bespoke development- The e-commerce
system is developed from scratch.
• Off-the-shelf (packaged) - An existing system is
purchased from a solution vendor.
• In the e-business context, this approach is often
achieved by external hosting via an applications
service provider.
• Hosted Software as a Service (SaaS) solution -
Businesses use this service by signing in to it.
• All applications and databases are maintained
and run on third-party servers.
• Tailored development -The off-the-shelf system is
tailored according to an organisation’s needs.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.7

Main Common Criteria

To Select Solution
1. Functionality - The features of the application.
Describes how well the digital business application
meets the business need.
2. Ease of use - Systems should be intuitive to minimise
the time needed to learn how to use them.
 A well- constructed piece of software will make it fast to
conduct common tasks.
3. Performance - The speed of the application to
perform different functions.
 This is measured by how long the user has to wait for
individual functions to be completed such as data retrieval,
calculation and screen display.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.8

Main Common Criteria

To Select Solution
4. Scalability - Scalability is related to performance; it
describes how well a system can adapt to higher
workloads which arise as a company grows.
5. Compatibility or interoperability - refers to how easy it
is to integrate the application with other
applications.
 E.g. does it have import and export facilities, does it support
transfer of data using XML?
6. Extensibility - describes how easy it is to add new
functions or features to a package by adding new
modules from the original vendor or other vendors.

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.9

Main Common Criteria

To Select Solution
7. Stability or reliability - All applications have errors or
bugs and applications vary in the number of times
they fail depending on how well they have been
tested since they were first introduced.
8. Security - Capabilities for restricting access to
applications should be assessed. This is particularly
important for hosted solutions.
9. Support - Levels of support and the cost of support
from the software vendor will vary.
 There is a risk that small companies may cease trading and
the product may no longer be supported.

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.10

A Content Update Review

Process

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Slide 12.11

An Example of a Content
Sharing Process and Tools for
Dave’s site SmartInsights.com

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.12

Typical
Structures of an
E-commerce
Site Steering
Group

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.13

Different Implementation
Methods - Advantages and
Disadvantages

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.14

Summary Of The Performance

Measurement Process

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.15

Management Issues With

Maintenance
• Deciding on the frequency and scope of
content updating
• Process for managing maintenance of the
site and responsibilities for updating
• Selection of content management system
• Testing and communicating changes
made
• Integration with monitoring and
measurement systems
• Managing content in the global
organisation.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.16

5 Diagnostic Categories for

E-marketing Measurement

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Slide 12.17

Attrition Through e-commerce

Site Activities

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.18

Multichannel Performance
Scorecard For a Retailer

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.19

A Framework For Different

Measures Used To Evaluate And
Manage Social Media Marketing

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.20

Examples Of Different Measures

Of Visitor Volume To A Website

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
 A Framework for Different
Slide 12.21

Measures Used to Evaluate

And Manage Social Media
Marketing

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
 Different Types of Data Within a
Slide 12.22

Performance Management
System for Online Marketing

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.23

National Express Page Assessed

Through Multivariate Testing

Source: www.national
express.com, National
Express Group PLC.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.24

Results of Multivariate Testing

for National Express

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.25

Digital Business
Implementation Issues
& Challenges

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.26

E-business Initiatives
Setting electronic commerce initiative
objectives
Consider strategic role of project, intended
scope, resources available
 Set measurable objectives
 Include intangible benefits
 Objectives vary with organization size
 Compare e-commerce risk to operational risk

 E-business activities measurement

 easy to measure, obvious, tangible,
 E.g. increased sales or reduced costs
 More difficult to measure -increased customer satisfaction
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.27

Website Benefits
1. Using Web sites to improve customer
service or after-sale support
Set goals of increased customer satisfaction
Reduce customer service or support costs
Example: Philips Lighting
Provided Web ordering system for smaller customers
Primary goal: reduce cost of processing smaller orders
Built pilot Web site and had smaller customers try it
Results: customer service phone calls from test group
dropped by 80%
E- Business, Ninth 27
Edition Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.28

Website Benefits
2. Using Web sites to build brands or enhance
existing marketing programs
Set goals in terms of increased brand awareness
Measured by market research surveys, opinion
polls
Complicated to measure brand awareness or
sales
Increase due to other things company doing
Increase due to time or general improvement in the
economy
E- Business, Ninth 28
Edition Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.29

Measuring Website Benefits

Metrics
Measurements companies make to assess value of
benefits
Use online surveys
Use estimates: length of time each visitor remains on site,
how often visitors return

Benefit unit of measure

Convert raw activity measurements to dollars
Can compare benefits to costs
Can compare net benefit of a particular initiative to net
benefits provided by other projects
Difficult29 to measure value in dollars
E- Business, Ninth
Edition Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.30

Identifying and Estimating

Costs
IT / E-business project costs
Difficult to estimate and control
Web development
i. Uses rapidly changing hardware and software
technologies
Hardware costs are downward – getting cheaper nowadays
ii. Increasing software sophistications
Provides ever-increasing demand for more newer, cheaper
hardware
Yields
30
net increase in overall hardware costs
E- Business, Ninth
Edition Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.31

Identifying and Estimating

Costs
1. Total cost of ownership (TCO)
 Includes all costs related to e-business activities
implementation, includes:
 Hardware costs, software costs, outsourced design work,
employee salaries and benefits, site maintenance
2. Opportunity cost
 Cost of not undertaking an initiative
 Largest and most significant costs associated with
electronic commerce initiative
 Foregone benefits that company could have
obtained 31
from electronic commerce initiative not
pursued
E- Business, Ninth
Edition Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.32

Identifying and Estimating

Costs
3. Web site costs
Total dollar amounts required to create and
operate a Web site
Varied over the years
Relative proportion of costs:
10%: computer hardware
10%: software
80%: labour
Annual cost of operating an online business Web
site
Remained stable
Ranges between 50% and 200% of site initial cost
Important element of annual Web site operating
cost 32
E- Business, Ninth
Edition Choice of Web hosting
Chaffey, Digital service
Business and E-commerce provider
Management th
Powerpoints on the Web, 6 edition © Marketing Insights Limited 2015
Slide 12.33

E-business costs Vs. Benefits

Analysis

E-business capital investments

Major investments in equipment, personnel, other
assets (Cost!)
Key parts of creating e-business initiatives
business plan
i. Identify potential benefits
ii. Identify costs required to generate benefits
iii. Evaluate whether benefits exceed costs

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.34

E-business costs Vs. Benefits

Analysis

Return on investment (ROI) techniques

Measures amount of income (return) provided by
specific current expenditure (investment)
 How much is the return for every $ invested?

Provides quantitative expression of comfortable

benefit-to-cost margin
ROI requires all costs, benefits be stated in $$ term
Not all can be quantify in $$ e.g. benefit

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.35

Monitoring Digital
Business & Challenges

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Slide 12.36

Web Site Design Issues

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User-centred Design
• Understanding the user
• Issues to be considered, e.g.:
o Who are the important users?
o What is their purpose for accessing the site?
o How frequently will they visit the site?
o Language suitability?
o What type of information are they looking for?
o What type of browsers will they use? How fast
will their communication links be?
o What are the effective links to lead them to the
website?

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.38

Site design issues

 Style and personality +  Content
design
o Engaging and
o Support the brand relevant.
 Site organization  Focus on security
o Fits audiences  Accessibility
information needs
Speed, resolution,
 Site navigation web browser
o Clear, simple, consistent support

 Page design
o Clear, simple, consistent
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.39

Aesthetics Fit the Brand!

Aesthetics = Graphics + Colour + Style + Layout + Typography

 Site personality
o How would you describe the site if it were a
person? E.g. Formal, Fun, Engaging,
Entertaining, Professional
 Site style
o Information vs graphics intensive
o Cluttered vs Clean
 Are personality and style consistent with
brand and customer orientation?
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
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Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
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Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.46

Make Navigation Easy

 To provide a good navigation website,
the following need to establish:
1. Where am I?
2. Where have I been?
3. Where do I want to go?
Context. Consistency. Simplicity.
 Use accepted standards for navigation
 Taking into account both the desktop
vs. mobile navigation ability
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.47

Web Accessibility
 Specifically to disable group
o Number of visually impaired people
Blind, Colour-blindness, Deaf, Motor skills/ co-
ordination (clicking very small target areas, timing
out), Photosensitive epilepsy, Cognitive problems?
 Number of users of less popular browsers
or variation in screen display resolution
 More visitors from natural listings of search
engines
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.48

Web Site Content

 Good content
o Clarity of content - was regarded by 88%
as ‘very important’.
o Good navigation - was regarded as very
important by 65%,
o Use of meaningful and clear hyperlinks
(63%).

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Slide 12.49

Digital Media Channel

Questions for marketers:

Which digital communications media
should we select for different types of
online campaign to increase our
business visibility?

EBusin
49
ess
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Slide 12.50

Emerging & Increasing

Trend of Online Activities
 New Business Models keep on developing
o Disrupting ‘traditional’ way of doing business
e.g.
transportation e.g. ride sharing – Grab, My Car, Jom
Ride, MULA, Dacsea, Riding Pink, DIFF etc.
- Uses mobile apps, Taxi services that ‘compete’ with current
taxis services
Cryptocurrency (e.g. Bitcoin vs. fiat money)
Accommodation e.g. Airbnb, Booking.com -
50 Busine
ss
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Slide 12.51

Mobile Wallet / E-wallet

Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 12.52

Emerging & Increasing

Trend of Online Activities

 The rise of online entrepreneurs

especially micro businesses
promoting their products through
online social network
Facebook, Instagram, Pinterest, Blogs

52
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Slide 12.54

Emerging & Increasing

Trend of Online Activities
 Crowdsourcing
o the process of getting work or
funding, usually online, from a crowd
of people.
o The word is a combination of the
words 'crowd' and 'outsourcing'.

54
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Slide 12.55

Crowdsoursing by Retailers
- user generated design
E.g. Bergdorf Goodman

55 E-Business

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Slide 12.56

Crowd-sourcing by
Automobile Industry

User
Generated
Design
e.g Citreon

56 E-Business

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Slide 12.57

Crowdsoursing by Brand
 Doritos Crash the Super Bowl campaign
through video advertisement
http://marketingland.com/doritos-takes-lead-search-crash-super-bowl-campaign-114100
http://www.adweek.com/news/advertising-branding/doritos-ending-its-crash-super-bowl-contest-not-one-
last-hurrah-166784

57 E-Business

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Slide 12.58

Emerging & Increasing Trend

of Online Activities
Use of Online Social Network for Social
Marketing – Volunteering Wave
– E.g. The Third Force
created spontaneously
since the big flood hit
Kelantan Dec 2014
lead by Raja Shamri by
posting pledge to
support the victims
through facebook
E-
Busine
ss
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Slide 12.59

Emerging & Increasing

Trend of online activities
Online Education e.g. Blended Learning, MOOC
More interactive learning compared to classroom
setting
Well known US universities starts to venture into
MOOC
Options for the community to pursue life long learning and
self learning activities

59
https://www.youtube.com/watch?v=0fDZEdfu5Gg
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Slide 12.60

Emerging & Increasing

Trend of Online Activities
Comparison sites e.g. Trivago, Traveloka
Mobile Applications – revenue
generation through mobile apps
Marketplace for Person to person selling
& buying e.g. Carousell, Carlist.my,
Shopee

60
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End of LU 12

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