Electronic Commerce Lifecycle
Why Take a Life Cycle Perspective?
A life cycle perspective on EC is useful for two reasons.
First, a client may have a problem or an opportunity that clearly
falls at a specific life cycle stage. In this case its useful to
go right to the resources that are useful at that stage. As an
example:
| Clients who ask
|
need help with: |
| What is the Web good for in my business? |
awareness |
| What EDI do I need to exchange data with my customers
and suppliers |
requirements analysis |
| How do I get my LAN installed |
implementation. |
Second, consultants often need to help clients think through
all the implications of moving into an EC environment. Both in
terms of finding resources and showing the client what is
involved, the life cycle view can be invaluable.
Life Cycle
See ECOTS for details about the supply chain integration project
in which the utility of these stages was tested.
Below are the seven stages of the EC life cycle. Each is
linked to resources that are useful in managing this stage.
(1) Awareness training is done to give key
people in a company a basic understanding of what a technology
is, what it can do for them, and where resources can be found
(e.g. consultants, training) to make decisions about
implementation. Working at this stage assumes that people know
nothing or little about the technology and feel a need to know
more. It provides people with a framework for intelligent
discussion and planning about a particular form of EC.
(2) Business Analysis Once there is
awareness it is all to easy to jump to the detailed planning of
stage 3 - requirements analysis. But business analysis is
critical if EC is to provide maximum value to an organization.
The worst case is that without business analysis, EC will be
counterproductive. The more likely possibility is that without
deliberate business analysis EC will have some benefits, but with
greater expense and less return than should be the case. The goal
of business analysis is to move a company toward the best case,
i.e. an EC environment that will make the company more efficient,
more productive, and more competitive. One impetus for business
analysis might involve technology, as in:
A second starting point may be a more general
business need, into which EC can be factored as part of the
solution, as in:
(3) Requirements Analysis is
identification of the EC system that will meet the previously
defined business needs. As an example a business need may be to
keep customers informed of ever changing products availability,
costs, and terms. The requirement to meet this need might be a
Web based catalogue linked to a data base on prices and
availability; and set in a new organization where a single group
maintains a common data base for the Sales and Purchasing
Departments. Requirements analysis can be seen as a "wish
list", or as an envelope of EC system functioning within
which solutions can meet business need. In the real world it is
impractical to build systems that will meet all
requirements. On the other hand it is impossible to build a
system that will meet any requirements unless those
requirements are clearly articulated.
(4) Design is an activity which sets out
the specifics of system. Questions to be resolved at this stage
include:
- What will the system do?
- What is the system's design?
- Who are my potential vendors?
- By when do I need different parts of the
system up and running?
- What tasks need to be done, and by when, to
get the system implemented?
- What will the system cost?
- How will the system be integrated into
other existing systems?
- What people have to be involved in the
process, and for how long a time?
- What are the needs for training?
- What teams need to be formed to implement
the system?
- What organizational changes are needed to
take advantage of the system?
(5) Implementation The purpose of the
implementation phase is to acquire and implement the system. This
is the phase when new technology comes in the door, training is
conducted, reporting relationships change, and new EC processes
begin to function. Making this work involves careful management
of activities and resources to move from the previously developed
"paper-based" plans to the reality of implementing new
systems in a company that at the same time is trying to satisfy
its customers and respond to ever changing business conditions.
(6) Integration and Validation Testing
makes sure that the system performs in accordance with its
specifications. In other words, that it does what it is supposed
to do and does not do what it is not supposed to do. First,
individual modules are tested in isolation. Then integration
testing begins as modules are hooked together. Finally the entire
system is tested with the participation of the users. At this
point the system may be put into service, but testing can be said
to continue for a few months to assure that users are able to
accept the system as a tool to assist in their routine work.
(7) Maintenance, the last phase of the
project life cycle, is what happens to the system after it has
become operational. It includes changes to the hardware,
software, and procedures for using the system. This phase
includes keeping the system going, adapting it to unforeseen
circumstances, and planning for the evolution to new systems to
meet changing business needs and the potential offered by new
technology.
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