Chapter 4

Summary & Notes on Chapter 4: Building an E-commerce Presence

1. Learning Objectives
 Develop an e-commerce presence, addressing business goals, design,
software, hardware, and optimization.
 Build a systematic approach involving steps like analysis, design,
implementation, and maintenance.
2. Key Concepts of Building an E-commerce Presence
 Planning & Strategy:
 You need to have a vision of what you hope to accomplish and how you hope
to
accomplish it
o Vision: Includes mission, target audience, strategic analysis, and
budget.
o Business & Revenue Models: Portal, e-tailer, content provider,
transaction broker, etc.
o SWOT analysis: Essential to understand strengths, weaknesses,
opportunities, and threats.
o E-commerce presence map: Defines web, mobile, email, and social
media strategy.
o Cost estimation varies from simple sites (~$5,000) to large corporate
ones (up to millions).
3. Systems Development Life Cycle (SDLC)
 Stages:
1. Systems Analysis/Planning:
 Define business objectives, functionalities, and information
requirements.
2. Systems Design:
 Logical design (data flows, databases, security).
 Physical design (hardware and software specs).
3. Building the System:
 In-house vs. outsourcing decisions.
 Hosting options: self-hosted, outsourced, or co-located servers.
 4. Testing:
 Unit, system, acceptance, A/B, and multivariate testing for site
optimization.
5. Implementation, Maintenance, and Optimization:
 Continuous maintenance and benchmarking against
competitors.
4. Website Components & Features
 Hardware and Software:
o Web server software: Apache (open-source) vs. Microsoft IIS (Windows-
based).
o Management tools for site monitoring, link validation, customer
purchases, etc.
o Website optimization techniques: improving speed, layout, and content
relevance.
 Personalization & User Experience:
o Personalization: Tailoring user experience based on individual
behaviors.
o Customization: Allowing users to modify product offerings to meet their
needs.
o Critical to have clear privacy policies and accessibility rules for
inclusivity.
5. E-commerce Site Design Considerations
 User Experience Factors:
o Avoid features that frustrate users: excessive ads, pop-ups, slow load
times, etc.
o Ensure easy navigation, legible content, contact information, and a
clear returns policy.
o Key design factors: ease of use, trustworthiness, and responsiveness.

6. Tools for E-commerce Optimization

 Search Engine Optimization (SEO):
o Includes metatags, titles, content optimization, and market niche
identification.
o Social media integration and ad placement enhance site visibility and
traffic.
This chapter emphasizes a strategic, step-by-step approach to building and
managing a successful e-commerce presence, from conceptualization to ongoing
optimization and user engagement.

KEY CONCEPTS
■ Understand the questions you must ask and answer, and the steps you
should take, when developing an e-commerce presence.
• Questions you must ask and answer, and the steps you should take, when
developing an e-commerce presence include:
1. What is your vision and how do you hope to accomplish it?
2. What are your business and revenue models?
3. Who and where is the target audience?
4. What are the characteristics of the marketplace?
5. Where is the content coming from?
6. Conduct a SWOT analysis.
7. Develop an e-commerce presence map.
8. Develop a timeline.
9. Develop a detailed budget.
■ Explain the process that should be followed in building an e-commerce presence.
• Factors you must consider when building an e-commerce site include hardware,
software, telecommunications capacity, website and mobile platform
design, human resources, and organizational capabilities.
The systems development life cycle (a methodology for understanding the business
objectives of a system and
designing an appropriate solution) for building an e-commerce website involves five
major steps:
• Identify the specific business objectives for the site, and then develop a list of
system functionalities and information requirements. Basic business and system
functionalities for an e-commerce site include a digi-tal catalog, a product database,
customer tracking, a shopping cart/payment system, an on-site blog, a cus-tomer
database, an ad server, a site tracking and reporting system, and an inventory
management system.
• Develop a system design specification (both logical design and physical design).
• Build the site, either by in-house personnel or by outsourcing all or part of the
responsibility to out-side contractors. Advantages of building in-house include the
ability to change and adapt the site quickly as the market demands and the ability
to build a site that does exactly what the company needs. Disadvantages include
higher costs, greater risks of failure, a more time-consuming process, and a lon-ger
staff learning curve that delays time to market. Using design templates cuts
development time, but preset templates can also limit functionality. A similar
decision is also necessary regarding outsourcing the hosting of the site versus
keeping it in-house
• Test the system (unit testing, system testing, acceptance testing, A/B testing, and
multivariate testing).
• Implement and maintain the site.
• Alternative web development methodologies include prototyping, agile
development, DevOps, component-based development, and service-oriented
architecture (SOA) implemented using web services and microservices
Identify and understand the major considerations involved in choosing web server and e-
commerce merchant server software.
• Early websites used single-tier system architecture and consisted of a single
server computer that delivered static web pages to users making requests through
their browsers. The extended functionality of more complex websites requires a
multi-tiered systems architecture, which utilizes a variety of specialized web servers
as well as links to pre-existing backend or legacy corporate databases.
• All e-commerce sites require basic web server software. Apache, which works with
Linux and Unix operating systems, is the most commonly used.
• Web server software provides a host of services, including processing user
requests for HTML and XML pages, security services, file transfer, search services,
data capture, e-mail, and site management tools.
• Dynamic page generation tools allow sites to deliver dynamic content rather than
static, unchanging information. Web application server programs enable a wide
range of e-commerce functionality.
• E-commerce merchant server software offers an integrated environment that
provides most or all of the functionality and capabilities needed to develop a
sophisticated, customer-centric site. Factors to consider in choosing an e-commerce
software platform include its functionality, support for different business models,
visual site management tools and reporting systems, performance and scalability,
connectivity to existing business systems, compliance with standards, and global
and multicultural capability.

Understand the issues involved in choosing the most appropriate

hardware for an e-commerce site.
• Speed, capacity, and scalability are three of the most important considerations in
choosing the most appropriate hardware for an e-commerce site.
• To evaluate how fast the site needs to be, companies need to assess the number
of simultaneous users the site expects to see, the nature of their requests, the types
of information requested, and the bandwidth available to the site. The answers to
these questions will provide guidance regarding the hardware necessary to meet
customer demand. In some cases, additional processing power can increase
capacity, thereby improving system speed.
• Scalability is also an important issue. Scaling up to meet demand can be done
through vertical or horizontal scaling or by improving processing architecture
Identify additional tools that can improve website performance
. • In addition to providing a speedy website, companies must strive to have a well-
designed site that encourages visitors to buy. Building in interactivity improves site
effectiveness, as do personalization and customization techniques.
• Commonly used software tools for achieving high levels of website interactivity
and customer personalization include Java-based web apps and Java servlets,
JavaScript and tools based on JavaScript, ASP.NET, ColdFusion, PHP, Ruby on Rails
(RoR or Rails), and Django.
■ Understand the important considerations involved in developing a mobile website
and building mobile applications. • It is important to understand the difference
between a mobile website, native apps, mobile web apps, and hybrid apps when
you are developing a mobile presence.
• The first step is to identify business objectives because they help determine which
type of mobile presence is best.
• Design should take into account mobile platform constraints. Recent trends
include mobile first design, responsive web design, and adaptive web design.
• Developing a mobile website is likely to be the least expensive option; mobile web
apps require more effort and cost; native apps are likely to be the most expensive
to develop.

QUESTIONS
1. What are the main factors to consider in developing an e-commerce presence?
1. Main Factors to Consider in Developing an E-commerce Presence
 The main factors include:
o Management: Ensuring alignment of business objectives and
technical requirements.
o Hardware Architecture: Choosing suitable servers and networks.

o Software: Selecting appropriate platforms and applications.

o Design: Creating user-friendly interfaces.

o Telecommunications: Ensuring reliable connectivity.

o Human Resources: Building a capable team for site management

and operations

2. Define the systems development life cycle, and discuss the various steps
involved in creating an e-commerce site.

2. Systems Development Life Cycle (SDLC) and its Steps in E-commerce

Site Creation
  SDLC is a structured methodology for building systems to meet business
objectives.
 Steps involved:
1. Systems Analysis/Planning: Defining objectives, functionalities, and
information requirements.
2. Systems Design: Includes logical design (data flow, security) and
physical design (hardware/software specifications).
3. Building the System: Deciding on in-house development vs.
outsourcing.
4. Testing: Conducting unit, system, acceptance, A/B, and multivariate
testing.
5. Implementation: Deploying the site and ongoing maintenance
3. Discuss the differences between a simple logical and a simple physical website
design.
3. Differences between Simple Logical and Simple Physical Website Design
 Logical Design: Represents the data flow, processes, and system
components on an abstract level.
 Physical Design: Specifies the actual hardware and software components,
detailing how the system is built and implemented

4. Why is system testing important? Name the types of testing and their
relationship to each other.
4. Importance of System Testing & Types of Testing
 Importance: Ensures that the system functions as intended and meets
business objectives.
 Types of Testing:
o Unit Testing: Tests individual modules.

o System Testing: Evaluates the entire site as a unit.

o Acceptance Testing: Verifies that the site meets initial business

requirements.
o A/B Testing: Compares two versions of an element to determine
effectiveness.
o Multivariate Testing: Tests combinations of elements to find the best
performing mix
5. Compare the costs for system development and system maintenance. Which is
more expensive, and why?
5. System Development vs. System Maintenance Costs
 Comparison:
o Development costs include design, hardware, software, and initial
setup.
o Maintenance costs, which are ongoing, often match or exceed initial
development costs.
 Which is More Expensive: Maintenance can be more costly due to
continuous updates, server costs, and performance optimization needs

6. Why is a website so costly to maintain? Discuss the main factors that impact cost.
6. Why Website Maintenance is Costly & Main Cost Factors
 Reasons for High Costs: Continuous updates, server maintenance, security
improvements, and scalability requirements.
 Main Factors Impacting Cost:
o Performance optimization and benchmarking.

o Security updates and compliance with regulations.

o Content updates and user experience improvements

7. What are the main differences between single-tier and multi-tier site
architecture?
7. Differences between Single-tier and Multi-tier Site Architecture
 Single-tier: Combines all functions (interface, logic, and database) on one
platform.
 Multi-tier: Distributes functions across multiple layers, enhancing
performance and scalability
8. Name the basic functionalities that web server software should provide.
8. Basic Functionalities that Web Server Software Should Provide
 Web server software should offer:
o HTTP services: for client-server communication.

o Security: encryption and authentication mechanisms.

o Data management: logging, monitoring, and analytics capabilities

9. What are the main factors to consider in choosing the best hardware platform for
your website?
9. Factors to Consider in Choosing the Best Hardware Platform
 Considerations include:
o Scalability: Ability to handle increased traffic.

o Speed: Fast processing and load times.

o Reliability: Uptime and consistent performance.

o Cost: Balancing performance with budget constraints

10. What is DevOps and how does it relate to agile development?

10. DevOps and its Relation to Agile Development
 DevOps: Combines development and operations to enhance collaboration
and speed up delivery.
 Relation to Agile: Complements agile methodologies by focusing on rapid
iteration, automation, and continuous delivery of applications

11. Compare and contrast the various scaling methods. Explain why scalability is a
key business issue for websites.
11. Comparison of Scaling Methods & Importance of Scalability
 Scaling Methods:
o Vertical Scaling: Enhancing server capacity.

o Horizontal Scaling: Adding more servers to distribute the load.

 Why Scalability Matters: Ensures performance during traffic spikes and

supports business
12. What are the eight most important factors impacting website design, and how
do they affect a site’s operation?
12. Eight Important Factors Impacting Website Design & Their Effects
 Factors: ease of use, speed, aesthetics, navigation, security, personalization,
mobile compatibility, and feedback systems.
 Effects: Influence user satisfaction, conversion rates, and retention

13. What are Java and JavaScript? What role do they play in website design?
13. Java and JavaScript Roles in Website Design
 Java: Used for server-side programming, building complex applications.
 JavaScript: Primarily used for client-side interactions and enhancing user
interfaces

14. Name and describe three methods used to treat customers individually. Why are
they significant to e-commerce?
14. Three Methods to Treat Customers Individually
 Personalization: Customizes user experiences based on preferences.
 Customization: Allows users to adjust products/services to fit their needs.
 Cookies: Track user behavior for targeted marketing.
 Significance: Enhances user engagement and increases conversion rates
15. What are some of the policies e-commerce businesses must develop before
launching a site, and why must they be developed?
15. Policies Needed for E-commerce Launch & Their Importance
 Necessary policies include:
o Privacy: Handling user data securely.

o Accessibility: Ensuring the site is usable by all, including those with

disabilities.
 Importance: Build trust, ensure legal compliance, and improve user
experience
16. What are the advantages and disadvantages of mobile first design?
16. Advantages and Disadvantages of Mobile-First Design
 Advantages: Better mobile user experience, improved search engine
rankings.
 Disadvantages: May limit desktop features and complicate development
17. What is the difference between a mobile web app and a native app?
17. Difference between Mobile Web App and Native App
 Mobile Web App: Runs in web browsers; platform-independent.
 Native App: Built for specific platforms, offering better performance and
access to device features
18. In what ways does a hybrid mobile app combine the functionality of a mobile
web app and the functionality of a native app?
18. How Hybrid Mobile Apps Combine Web and Native Functionality
 Hybrid apps are built with web technologies but wrapped in a native shell,
offering device access while maintaining web capabilities

19. What is PHP, and how is it used in web development?

19. PHP in Web Development
 PHP: A server-side scripting language used for building dynamic websites,
handling forms, and interacting with databases
20. How does responsive web design differ from adaptive web design?
20. Responsive vs. Adaptive Web Design
 Responsive Design: Adapts fluidly to different screen sizes.
 Adaptive Design: Uses fixed layouts tailored to specific devices

E-commerce Development and Maintenance: A Concise Guide

1. E-commerce Presence Factors:
 Target audience: Who are you selling to?
 Products/services: What are you offering?
 Branding: What’s your unique identity?
 Marketing strategy: How will you reach customers?
 Budget: How much can you invest?
 Technology: What platform and tools will you use?
 Security: How will you protect customer data?
 Legal compliance: Are you following regulations?
2. Systems Development Life Cycle (SDLC):
A structured approach to building and maintaining systems.
Steps: Planning, Analysis, Design, Development, Testing, Implementation,
Maintenance.
3. Simple Logical vs. Physical Website Design:
 Logical: Conceptual structure of the site (navigation, content organization).
 Physical: Actual implementation using code (HTML, CSS) to create the visual
interface.
4. System Testing Importance:
Ensures the system functions correctly and meets requirements.
Types: Unit testing, integration testing, system testing, acceptance testing. These
build upon each other, progressing from individual components to the entire
system.
5. Development vs. Maintenance Costs:
Maintenance is typically more expensive long-term. Development is a one-time cost,
while maintenance involves ongoing updates, security patches, and support.
6. Website Maintenance Costs:
 Hosting: Server space and bandwidth.
 Software updates: Security patches, new features.
 Content management: Updating and creating content.
 Technical support: Troubleshooting issues.
 Marketing and SEO: Driving traffic to the site.
7. Single-Tier vs. Multi-Tier Architecture:
 Single-tier: All components (presentation, logic, data) on one server. Simple
but less scalable.
 Multi-tier: Components distributed across multiple servers. More complex
but offers better performance and scalability.
8. Web Server Software Functionalities:
 Process HTTP requests
 Handle static and dynamic content
 Manage security and access control
 Provide logging and analytics
9. Hardware Platform Considerations:
  Traffic volume
 Storage needs
 Processing power
 Scalability requirements
 Budget
10. DevOps and Agile Development:
DevOps emphasizes collaboration between development and operations teams to
streamline software delivery and improve efficiency. It complements Agile’s iterative
development approach.
11. Scaling Methods:
 Vertical scaling: Adding more resources to a single server.
 Horizontal scaling: Adding more servers to distribute the load.
 Cloud scaling: Utilizing cloud resources for flexible scalability.
Scalability is crucial for websites to handle traffic spikes and ensure
optimal performance as the business grows.
12. Website Design Factors:
 Functionality: Ease of use and navigation.
 Aesthetics: Visual appeal and branding.
 Content: Relevant, engaging, and informative.
 Navigation: Intuitive and user-friendly.
 Speed: Fast loading times.
 Mobile optimization: Responsive design.
 Security: Protecting user data.
 SEO: Optimizing for search engines.
13. Java vs. JavaScript:
 Java: General-purpose programming language used for server-side
development.
 JavaScript: Client-side scripting language used for interactive elements and
dynamic content.
14. Personalized Customer Treatment Methods:
 Personalized recommendations: Suggesting products based on browsing
history.
  Targeted promotions: Offering discounts on relevant items.
 Customized communication: Tailoring emails and messages.
Significance: Enhances customer experience, increases engagement, and drives
sales.
15. Essential E-commerce Policies:
 Privacy policy: How customer data is collected and used.
 Shipping policy: Shipping costs, methods, and delivery times.
 Return policy: Procedures for returning products.
 Terms of service: Rules and guidelines for using the site.
These policies build trust and transparency with customers.
16. Mobile-First Design:
Advantages: Improved mobile experience, faster loading times, better SEO.
Disadvantages: Limited screen space, potential for feature limitations on desktop.
17. Mobile Web App vs. Native App:
 Mobile web app: Website optimized for mobile devices, accessed through a
browser.
 Native app: Downloaded and installed on a device, can access device
features.
18. Hybrid Mobile App:
Combines elements of both web and native apps. Uses web technologies within a
native app container, allowing access to device features while maintaining cross-
platform compatibility.
19. PHP in Web Development:
PHP is a server-side scripting language used to create dynamic web pages. It’s often
used for server-side logic, database interactions, and e-commerce functionality.
20. Responsive vs. Adaptive Web Design:
 Responsive: One layout adapts fluidly to different screen sizes.
 Adaptive: Multiple fixed layouts optimized for specific screen sizes.

1. What are the stages of the System Development Life Cycle (SDLC) for
developing an E-commerce website?
 Answer: The stages include:
 1. System Analysis and Planning: Define requirements, including
functional, non-functional, and business objectives.
2. Planning: Estimate time and budget.
3. Design: Create logical design (e.g., class diagrams) and physical
design (e.g., component diagrams).
4. Implementation: Convert requirements and models into code using
templates.
5. Testing: Use test cases to verify output.
6. Deployment and Maintenance.
2. What is SWOT analysis, and why is it important in E-commerce
development?
 Answer: SWOT analysis evaluates the Strengths, Weaknesses,
Opportunities, and Threats of the E-commerce project. It is important for
understanding internal capabilities and external market conditions, guiding
strategy, and improving decision-making.
3. What is the difference between functional and non-functional
requirements?
 Answer:
o Functional Requirements: Services or features the website must
provide (e.g., user login, product search).
o Non-Functional Requirements: Constraints or quality attributes,
such as performance, security, and usability.
4. What are the two types of design in E-commerce website development?
 Answer:
o Logical Design: Includes class diagrams that represent the system’s
structure.
o Physical Design: Involves component diagrams showing how
elements are stored in the database.
5. What is benchmarking, and how is it used in E-commerce development?
 Answer: Benchmarking involves comparing the E-commerce site with
competitors' sites in terms of response speed, layout quality, and design. It
helps identify areas for improvement and ensures competitive performance.
6. What are the two main approaches to building an E-commerce website?
 Answer:
 o Outsourcing: Hiring an external company to develop the
software/website.
o In-house Development: The internal team is responsible for building
the website.
7. What is a component in the context of E-commerce system design?
 Answer: A component is a group of classes that work together to perform a
specific functionality within the system.
8. What is the purpose of creating diagrams (e.g., class, data flow) in
system design?
 Answer: Diagrams help describe the main components of the system and
their relationships, clarifying how data and processes interact within the
system.
9. What are some examples of functional requirements for a web store?
 Answer:
1. The webstore should allow users to add items to the cart.
2. Users should be able to create and manage accounts.
3. The system should support secure payment processing.
10. What is the difference between logical and physical design diagrams in
E-commerce development?
 Answer:
o Logical Design: Represents how classes and relationships are
structured.
o Physical Design: Shows how components interact and how data is
stored in databases.