1. An E-DSS for Strategic Planning of
E-Commerce Website Development
Ranjit Bose
Associate Professor of MIS
Anderson School of Management
University of New Mexico
Albuquerque, NM 87131
USA
E-mail: bose@anderson.unm.edu
ABSTRACT help the information technology managers
and professionals who are considering
In this new millennium, entirely new construction of such a DSS for their
markets, products, and services are organization.
emerging from digital technologies such as
Internet based businesses or e-commerce.
Strategic planning of e-commerce website
development is one of the critical activities of 1. INTRODUCTION
an organization within the context of its e-
commerce investment and success. The Today’s e-commerce environment is
unstructured nature of this problem-solving increasingly becoming complex, the focus is
activity makes it an appropriate candidate towards using “The Web” and its enabling
for decision support systems (DSS) based technologies to strategically create a web
solution design. In this paper, we propose presence or website that can provide value-
the development of such a DSS, which we added capabilities and integration in all
call an e-DSS, since it is Internet based. The aspects of a business’s functional and
purpose of this research is to analyze the operational areas. More businesses are
requirements for creating the e-DSS. The moving toward these electronic processes
research findings are organized and and procedures that use e-commerce,
presented as detailed requirements and pushing the rest of the businesses to take
content assessment of each of the e-DSS action or be “e-lagers,” that is, left behind.
components, which include the user For example, Lai and Yang (2000) predict
interface, model base and database. In that, “total value of goods and services
particular, these findings will immensely traded over the web in the United States

2. alone will reach US$327 billion in the year needed. The unstructured nature of the above
2002, an average annual growth rate of problem makes it appropriate for a DSS
110%.” Interestingly, Ince (2000) notes that, based solution. The e-DSS would be able to
“only about half of small businesses even provide alternative strategies, as well as
have Internet access. Of those, only a small facilities to analyze and evaluate these
percentage has continuous Internet access. strategies for selecting the best strategy for
To really open up this market, you have to an organization for its e-commerce website
get people to understand that the Internet is development. The implications of such a
something that can be useful to their system are, first, the e-DSS would bring
business.” together new models, new data as well as
information, and expert e-commerce
E-commerce can be defined as internal knowledge that many individual
and external operations of businesses that are organizations and researchers have
performed at high speed and response rate to successfully utilized and are seen as critical
satisfy the customers, who expect real time in such development. Second, the e-DSS
communication and guaranteed satisfactory would provide the decision-makers such as
outcomes in products and services. The marketing managers, IS managers, and
foundation of e-commerce, in an executives the expectations, investment
organization, relies on developing resources, threats, risks, costs, and
appropriate websites based on its business opportunities of e-commerce website
strategies. It is then critical for decision- development.
makers to strategically plan the e-commerce
website development, as well as for them to The purpose of this research is to
know what tools and technologies could be analyze the requirements for creating the e-
used, and how they could be used to analyze DSS. The research findings are organized
and to act effectively on this new paradigm. and presented as detailed requirements and
content assessment of each of the e-DSS
In an unprecedented manner, today’s e- components, which include the user
commerce requirements are placing interface, model base and database. In
increasing strain on decision-makers to have particular, these findings will immensely
the channels available and the infrastructure help the information technology managers
visible and effective. Therefore, a specific and professionals who are considering
Internet-based DSS which would provide construction of such a DSS for their
insight into the critical and complex activity organization.
of strategic planning of e-commerce website
development could be quite beneficial to a
range of companies from startup to Fortune
500. The decisions that would be made based 2. CHALLENGES AND ISSUES FOR
on the strategic planning of e-commerce E-DSS
website development will directly impact the
ability to satisfy customers, suppliers, and Creating a strategic website for e-
key stakeholders. commerce has many challenges and impact
on an organization’s functional, managerial,
This research contends that in this “e- and strategic levels. Specifically, the major
era,” a specific Internet-based DSS for groups impacted are strategic planning, IS
strategic planning of e-commerce website departments and marketing. Although, other
development, which we call an e-DSS, is groups, such as accounting, operations and

3. procurement could be included. For the testing process of middleware technologies
purpose of this research, only the major are also critical. One of the critical tasks of
groups have been studied and analyzed. the IS departments in organizations is
prioritization of the above issues.
Strategic planners such as small Furthermore, they are challenged with
business owners, CEO, CFO, and VP selecting algorithms, design models, agent
marketing are continuously looking to technologies, and doing analysis of business
improve business but are also inherently risk and market planning.
adverse which in itself creates challenges in
web development and e-commerce From the marketing perspective the
integration. In this technology era challenge of e-commerce website
organizations are more prone to demand risk, development is to define the Internet
innovation risk, and inefficiency risk, the customer prior to establishing an Internet
goal would be to use the web to reduce these presence (Kiang, Raghu and Shang, 2000).
risks and have a clear risk analysis. “Firstly, how many existing or potential
Therefore, at the same time there has to be customers are likely to be Internet users? If a
controls and audits in place for websites significant proportion of a firm’s customers
development and e-commerce projects are Internet users, and the search cost for the
before hand. Creating a web environment products and services are reasonably (even
will impact current customers, suppliers, moderately) high, then clearly an
partners, B2B (business to business) organization should have a presence;
(Papazoglou and Tsalgatidou, 2000), and otherwise, it is missing an opportunity to
B2C (business to consumer) relationships. inform and interact with its customers… If a
Opportunities for focused, quality, high- firm does not have a website, there is a risk
speed communications products and that potential customers, who are web savvy,
components for communications could fulfill will flow to competitors who have a web
the need or concept of immediacy; where presence. Also, what is the information
customers, partners, banks, etc. want intensity of a company’s products and
everything right now. Therefore, the services?” (Watson, Zinkhan and Pitt, 2000).
challenge is to know how to strategically go Marketing then has to answer the question,
about integrating websites and e-commerce what web enabling technologies are geared
into the business functions that currently for their target market? The website must be
exist to solve business problems. Such able to identify and target customer groups
critical success factors can impact what and individuals, personalize and give
decision-makers must take into consideration guidance in the buying process, use
and how they should take them into innovative ways of packaging information
consideration when investing in developing and services, such as video clips. Although,
new or redeveloping existing website the “marketing goal will be the same as ever:
infrastructure. deliver the right product to the right
customer at the right time,” (Kenny and
The IS department deals with issues Marshall, 2000). The question then is what
such as the development and resources of new marketing models can be followed to
websites that include high performance and create an effective website.
high availability, web design, security risks,
authentication and privacy issues. The The complexity and unstructured nature
challenges of maintaining user-friendly of the problem-solving process for
websites and their applications, and the addressing the above challenges and issues,

4. clearly indicate that an e-DSS is needed. The system does exactly as it is titled. Its function
e-DSS, like any DSS, would consist of the is to provide decision support. It does not
following components: (a) the users, (b) the make decisions for the user, nor does it
user interface, (c) the model base, and (d) the simply supply reports.
database. A brief review of DSS is provided
in the next section, which is followed by DSS assist managers in assessing the
sections that identify the detailed future impact of current decisions. The
requirements and contents of each of the system provides this support by returning
above components of the e-DSS results based on “what if?” questions, or
respectively. assumptions about future conditions.
Through an iterative process, a DSS can
provide the following types of information to
decision makers: (a) decision objectives or
3. DSS BACKGROUND criteria, (b) decision alternatives or
strategies, and (c) consequences of decision
Decision support systems (DSS) allow alternatives. In deriving these results, the
people at many different levels to process may be either model-oriented or
systematically analyze problems before data-oriented. Model-oriented processes
making a decision (Turban 2001). In the make comparisons and perform analyses
process, these systems extend the range and based on an objective model. The model is a
capability of the decision-making process, coordinated set of parameters or conditions
increasing its effectiveness. DSS are and their relationships. Models usually are
especially useful in supporting semi- derived from analysis of historical data and
structured and unstructured problems. DSS trends. Data-oriented processes focus on
are very different from traditional responses for specific inquiries and data
information systems that are based on fixed analysis. While models deal with sets of
logic patterns and are mainly report conditions, data inquiries and data analysis
generators. In contrast, DSS are customized are concerned with specific questions.
management systems that support non-
routine decision-making and evaluation by
offering a variety of options to develop
various logic methodologies. 4. E-DSS USERS
DSS are integrated multi-platform The users of the e-DSS would include
system focused on specific decisions that but not limited to the following members:
combines corporate data, models, and strategic planners, VP of marketing
interactive, user-friendly software into a communications, project leader of web
single powerful support system under user development, marketing design team leader,
control. DSS occupy a wide band in the technical IS managers, programming leaders,
spectrum of data versus model-oriented web server managers, and database
systems. DSS are always a combination of administrators. Other decision-makers that
both data and models, but one system will might be involved would be project auditors,
differ in emphasis from another. The human resource managers, enterprise
interactive and user-friendly software in DSS business application leaders who may need
is designed to be as easy to use as possible. It large application integration to systems such
is geared primarily toward corporate users as Peoplesoft, Oracle Financials, SAP
who are not very computer-oriented. The systems, and procurement.

5. 5. E-DSS USER INTERFACE such as Action Technologies might be
integrated with project task applications and
Given that the e-DSS itself is Internet vote and ranking process to facilitate the
based, the user interface would have to be decision-maker’s progress. Additionally, an
very user friendly. The e-DSS would be a EDM system such as WebFileShare, where
true example of what a website might “documents in an electronic form are
ultimately provide (Conway and Koehler, provided by a single repository (typically a
2000). The user interface must be “adaptable web server), only the current version needs
to different users’ needs and communicate to be provided. Access can be restricted as is
consistent commands to the internal required. Essentially, electronic document
components of the DSS,” (Hoffman and management (EDM) system provide
Novak, 2000). In order for the user interface information to decision-makers in a usable
to be adaptable, at the level mentioned format, much like an executive information
above, it must incorporate collaborative system,” (Turban, 2001). This would be ideal
technology capabilities and integration for the formation of website strategic
facilities and additionally, be able to provide planning, proposals, audits, ranking
each of the major user groups, specific evaluations, and executive acceptance
abilities and functions for them to carry out. documents. The user interface must also be
able to provide input to web models that are
In order for the market planners to within the model base.
generate ideas, that could use animation and
video clips, to facilitate marketing products,
the e-DSS must be able to display these
utilities in a general format so as to help 6. E-DSS MODEL BASE
these market planners in the determination of
whether such technology might be included It is increasingly becoming difficult for
in their own site. Data capturing samples organizations to adjust their business models
from web server logs, and agents or to accommodate emerging e-commerce
algorithms should be provided to assess what technologies that could potentially provide
type of critical data must be captured for sources for business opportunities. The e-
marketing analysis. Additionally, the user DSS model base would provide a
interface must allow the users to use the representation of models that organizations
models interactively, for example, use of would use to understand and analyze the
cost models must be web form based so that domain problems and their possible
variables could be easily inputted by solutions. In the model base, the models
strategic decision makers; what-if scenarios would include traditional strategic,
could be analyzed and saved for later marketing, and IS models that have been
decision ranking by the user group. time-tested and proved to be effective such
Integration, for example, with MS FrontPage as SWOT (strength, weakness, opportunity
and Netscape enterprise Web Server could and threat) analysis, CBB (customer buying
allow web designers and web programmers behavior), Systems Life Cycle analysis,
to jointly create prototypes, then have the Feasibility analysis, decision tree analysis,
group vote or rank website prototypes or costing models, NPV analysis, ROI analysis,
integration functions. etc. Additional models, obtained from
research literature, that are specific to
Collaborative utilities such as different aspects of the strategic planning of
brainstorming engine and workflow engine e-commerce website development process

6. would also be included in the model base. perspective of the planned system,” (Larsen
These models can be categorized, by the and Bloniarz, 2000).
major user groups’ involvement in the
decision process, into three categories: The decision-makers, using this model,
strategic planning, marketing and IS. could then look at the cost and benefits
analysis, or use a more formal project cost or
resource allocation methods, or a
6.1 Strategic planning models combination of traditional project
evaluations such as multiple attribute utility
Research was conducted to find new models. Advantages of this model was that it
strategic planning models that have a clear was simple and straightforward to
focus towards expected costs, benefits or understand, and it also provided the
expectations, and ability to narrow options opportunity to organizations that were
for developing e-commerce websites. Three considering expanding their websites with
of the most critical strategic planning models additional services or upgrades or integration
found are described below. with B2B functions and e-business
functionality. It captured the critical
Larsen and Bloniarz (2000) developed a information from the planner and gave a
model called “the cost-performance model,” detailed process of evaluation and use.
(see Figure 1), that is very insightful for the
purpose. This model consists of three tools. Fellenstein and Wood (2000) provide
two models for strategic planning. The
“The first tool – the system features and graphical representations of these models as
functionality worksheet – helps identify the shown in Figures 2 and 3, help understand
business goals a web service has to serve, as where an organization might be and what
well as the delivery mechanisms that will be direction it wants its website development to
used to support the service (see Table 1). go. “The new business strategies” model
This tool provides a framework for making shows what critical factors such as human
decisions supported by the model. The resources, marketing, partnerships, and
second tool – called the performance knowledge acquisitions are required. The
worksheet – identifies the important factors “importance of the value chain” model
defined through the first tool (see Table 2). shows how multiple enterprises have
These factors are fleshed out as performance relationships focused on integrating
variables, measures, and targets. The factors information flows to exploit information and
give an organization a method for defining in knowledge for strategic business objectives.
detail the goals of a service, as well as a It focuses on increasing value through
framework for measuring whether the internal relations among firms. A dynamic
service meets these goals after its market configuration involves a market-
implementation. The third tool – the cost mediated set of relations focused on
worksheet – helps address comprehensive set increasing flexibility and opportunity for
of cost areas and calculates a rough estimate strategic business objectives (Gray, 2000). It
of the system’s costs (see Table 3). Though is interesting to see that all three strategic
any one of the three tools can be used alone models above greatly emphasize knowledge
or be customized to fit a specific and data management prior to and during the
organization’s process of system operation of a website.
development, the three together are
complementary, providing a comprehensive

7. 6.2 Marketing models matches appropriate web technologies such
as search engines, audio, video, FTP,
Extensive, new marketing models were NewWire, VR, etc., with important market
found from literature for website attributes such as atmospherics (retail
development. Marketing on the web environment), personalization experience,
emphasizes on seeing where revenue can be advertising, culture and news. This enables
developed. These new marketing models are organizations to promote differentiation,
fundamentally designed to derive revenue develop new markets, create one-to-one
from new sources that have not been thought customized interaction, facilitate product
of before. Examples of these models are: development, diversify new products to new
New imaginative models that focus on markets, and be continuously innovative.
finding innovative combinations for
advertising – like subscription fees,
transaction costs, and referral fees. Affiliate 6.3 Information systems models
models, use other websites to bring
customers to the organization’s site. Internet Information systems models for e-
realities models – focus on wide distribution commerce website development focus on
that can allow companies to keep customers, project management, web performance,
suppliers, and personnel informed of latest network traffic pricing for high availability
changes, thereby lowering costs and and security. Technology assessments models
improving customer satisfaction. E-branding provide project management in comparing
market models – focus on branding strategies technologies by having host and control
to immerse customers in an experience that projects. This is similar to having
can reinforce and amplify the organization’s production, quality, and development regions
brand thereby securing repeat customers to for moving new technologies such as
their website. middleware, upgrades, and patches to
production systems. Congestion is a problem
Another useful marketing model, called for web performance and therefore, is a
I2 M (see Figure 4), provides a detailed critical factor in each of the web
structured approach of determining what development phases. Capacity planning
types of companies would be effective in encompasses many models such as
using the Internet for coordination of their workload, prediction, and performance
planned marketing strategy. The model models. Experts have developed probability
defines using a grid, what types of industries density functions, mathematical structures by
should be using the Internet as a tool, using the use of fractal models, and LRU stack
two parameters: proportion of customers models to characterize workload. The
with web access, and information content of technology of proxy servers has been derived
product. Organizations that fall on the top- from many expert studies (see Figure 5),
right quadrant are prime candidates because where caching has proven to be very cost-
many of their customers have Internet access effective because of its ability of adjusting
and their products have a high-information the rate at which files are pre-fetched, and of
content. Whereas, firms falling on the other minimizing the network load (Menasce,
quadrants, particularly on the low-small 2000). Predicting web performance can be
quadrant, have less need to invest in e- done through simulation models where web
commerce websites (Watson, Zinkhan and server transactions, requests, and load testing
Pitt, 2000). More importantly, this model are mocked. Also, there are analytical
provides a matrix (I2 M Matrix) which models, which encompass formulas and

8. algorithms that can relate server and work policy, resource allocation, and competitive
load parameters. advantage, mainly because different parts of
a network are owned by different entities and
The QN (queuing network) models are at any given time a customer’s transaction or
important models to understand and use for request travels through multiple networked
making informed decisions on sizing web infrastructures. The idea of QOS (quality of
servers and the underlining infrastructures. service) models have come into play in web
services, by providing different customers
“QN models represent each resource by with their request rates of network service
a queue composed of the resource and a class or performance level. For example, in
waiting queue for the resource. A request this model a customer who pays for higher
may visit a given resource more than once class gets to have a priority in transmission
during its execution. For example, an HTTP than other service classes. Interestingly, this
request may require several I/O operations model was proved by simulation, and it
on a given disk. The total time spent by a showed that significant performance
request obtaining service from a resource is enhancement and monetary benefits can be
called the service demand. Service demands achieved by using dynamic prices as
do not include any queuing and constitute compared to the two other standard pricing
one of the important types of input approaches: fixed charges and time based
parameters to QN models. In queuing charges (Gupta, Stahl and Whinston, 1999).
network terminology, the entity that flows Models like QOS are needed in the model
from one network terminology, the entity base to study and understand possible future
that flows from one queue to another is a directions of network management pricing
customer. Customers may represent HTTP policies.
requests, database transactions, and remote
file service request. A customer is the model Web design is extremely critical for any
representation of the workload unit of work. website. Web programmer models that are
Since a system may contain many different currently available are geared more toward
types of workloads contending for resources, what not to do and what principles to follow.
a QN model may contain many different A model called TAM (technology
classes of customers. For example, different acceptance model), which has been
classes of customers in a QN may model validated, shows the perceived usefulness,
requests for small text documents and large perceived ease of use, perceived attitude
image files store at a web server since they towards use, and behavioral intention of use
represent substantially different usage of of an IS system, could be very useful
server and network resources,” (Ince, 2000). (Lederer, Maupin, Sena and Zhuang, 2000).
The IS group often has to find answer to the
These models provide critical insights question, what makes a website useful and
that become useful in making decisions easy to use? Eight critical principles such as
regarding network topology speaking the user’s language, consistency,
interconnections, proxy servers (see Figure minimization of the user’s memory load,
6), and the needed infrastructure of servers, flexibility and efficiency of use, aesthetics
routers, and LANs for optimal performance and minimalist design, chunking, progressive
of a website. levels of detail, and navigational feedback,
used in the TAM model, are needed in a
Network management and pricing website’s ability to make it more useful and
models are available in the areas of taxation easy to use. Understanding the culture of the

9. audience is also critical but there were no security procedures has been greatly argued.
specific models found in this area. For example, the use of SET versus SSL.
SET uses “digital certificates to verify the
Use of new web intelligent agents is identity of both consumer and the merchant,”
important for IS to understand and be able to (Demarais, 2000). Although, it requires
apply. The website must have many different supporting APIs on both sides to work but
agents that are able to work anonymously “with the backing of the two largest credit-
and collaboratively to provide both what card organizations, Visa and MasterCard,
marketing wants as one-to-one and SET is poised to become the standard means
customized web serving personalization. for credit-card transactions via the Internet,”
“The personalized, continuously-running (Stalling, 2000).
autonomous nature of agents make them
well-suited for mediating those consumer Rohm and Pernul (2000) have
behaviors involving information filtering and developed the COPS security model. They
retrieval, personalized evaluations, complex note, “users want to have integrated tools
coordination and time-based interactions,” guaranteeing privacy, security, and fair trade,
(Guttman, Moukas and Maes, 1998). The that are embedded in a legal system which
model, called “system architecture for protects from criminal behavior and
intelligent browsing on the web,” created by technical failure. On the other hand, users,
Lai and Yang (2000) describes the use of especially suppliers, want to freely chose and
agents that IS developers can follow. Their eventually change after sometime the market
website system architecture (see Figure 7) structure in which they are trading their
can provide insight into how agents can digital goods.” This model can explain five
capture and help the customer by enhancing market players and the three common
the experience as they are browsing on the practice market transactions of information
website. Specifically, it includes a DSS phase, negotiation phase and the execution
within the agent itself and defines five phase that would possibly provide security
separate agents that could be used for solutions. The model focuses on four
personalization. components: (a) a framework of the designer
of a market transaction, (b) an execution
Computer security, at all levels of IS, is environment for specified market
important and it is also difficult to determine transactions, (c) different basic (trusted and
the legal level of security and the way in non-trusted) services in the network, and (d)
which that level is to be achieved (Shaw, appropriate security mechanisms provided
1998). Most security procedures are varied through an API. Ideally the model should
and can include a combination of algorithms have a method such as a workflow engine to
for encryptions such as the use of private key collaborate between the phases.
or public key certifications that are used as
digital signatures to ensure privacy, use of Each of the models that are mentioned
SSL (secure socket layer), integration with in this section will need specific data that
EDI (electronic data interchange) and having need to be collected, stored and used for
the intelligent agents provide negotiation analysis by the e-DSS. Therefore, the next
processing. The key to security is that each section will focus on the database component
organization must formulate a combination of the e-DSS. The database component must
and an objective plan that it would require have the ability to communicate with the
from file locking through the use of SSL models, which will reside in the model base,
transmission. The idea of standardization of for providing the values of variables and

10. parameters in them for analysis. descriptions, prices, and inventory levels.
IS would also require up to date data on
different technology uses and methods.
7. E-DSS DATA BASE Much of these data that will be needed by the
e-DSS would come from the web itself such
The data that will be required for as from web performance logs, from web
supporting the strategic planning of e- servers, IP, router information from network
commerce website development can be utilities to determine throughput, disk and
categorized into three main categories: CPU usage.
strategic planning data requirements,
marketing data requirements, and IS data Additionally, the e-DSS metadata and
requirements. Strategic planning data would data objects would also need to be stored.
mainly be internal data such as each of the The e-DSS would in itself need to be able to
cost elements for the organization’s website. store user profile information of its users
This would consist of proposed and/or actual such as managerial preferences.
cost of developing the web page process, Furthermore, metadata about the decision
networking or Internet service provider, making processes, ranking results, time laps
security, business and management such as for each of the decision processes, version
accounting functions for the web project, control for integration to other packages or
marketing budgets, overall IS middleware middleware also need to be stored. Lastly,
components, IS project development, the e-DSS should be able to store metadata
maintenance, computer systems, and on what data was most used by the
outsourcing. Additionally, data from vendors organization in the decision-making sessions
would also be required. by its different decision-makers.
The required marketing data is extensive In order to store and organize these vast
compared to the other two categories mainly amounts of data, a data warehouse will be
due to the need for continuous data capture necessary. A data warehouse is a
related to the customers or target audience. “centralized repository that must support
To be able to have a website that focuses and complex decision support queries at high
redefines the marketing strategy, it will need performance. A data warehouse typically
to “continue to acquire and analyze huge utilizes relational database technology due to
volumes of information on millions of the maturity of this technology,”
consumers to enable delivery across multiple (Rundensteiner, Koeller and Zhang, 2000). A
channels,” (Powell, 2000). Intelligent agents data warehouse such as an Oracle 8i RDMS
need to be used to collect both users’ profile would have to be one of the core members of
and site contents. The users’ profile would the database component of the e-DSS.
contain background information such as web
user’s name, gender, preferences, location, e- “In data warehousing, data from
mail address, time of web surfing, operational systems and other external
information about the process on what and systems are periodically extracted and
how a user followed the site path such as transformed by data warehouse generation
transaction processing logs. The site tools and loaded into a data warehouse. After
database would contain the site relationship extraction, the transformation process
data, metadata about the site, and actual includes the following activities: (1) filtering
contents of the site such as product content, the data to eliminate unnecessary details or

11. fields; (2) cleaning the data to remove the investments. Clearly, a cohesive decision
duplicate records, correct typographical support system, such as the e-DSS, can help
errors in strings, and add missing field organizations start out with an effective
values; (3) converting and translating the website and continuously use the system to
extracted operational data to the OLAP improve and integrate the website with new
database format; (4) consolidating and technologies, partners, suppliers and
aggregating the data from multiple sources; ultimately satisfy their stakeholders and
and (5) loading the data into the data customers. This research analyzed the
warehouse,” (Bose and Sugumaran, 1999). requirements for creating the e-DSS.
Two of the most important abilities in To construct a successful e-DSS for
the warehouse should be OLAP (on-line planning e-commerce website development
analytical processing) and data mining, both for an organization, there are several
of which allow decision-makers the ability to implementation steps which need to be
structure the data for greater analysis and addressed. These steps include: (a)
findings that would not be possible evaluating the needs, (b) examining the
otherwise. OLAP is a utility that is tightly technology and process capabilities, (c)
integrated with a modern RDMS such as assessing the website security requirements,
Oracle 8i (Karpain and Myers, 2000). Data and (d) determining the related hardware and
mining would use intelligent agents, AI software. The research findings provided the
technologies and possibly an expert system specifications for these steps for each of the
module that will contain algorithms to e-DSS components, which included the user
extract unknown relationships from within interface, model base and database. These
the data warehouse, to help the decision- findings should be of immense help to the
maker. “The data mining tasks can involve information technology managers and
the discovery of association rules, sequential professionals who are considering
patterns, pagesview clusters, user clusters or construction of such a DSS for their
any other pattern discovery method in a organization.
website,” (Mobasher, Cooley and Srivastava,
2000). Both OLAP and data mining abilities More research must be done to
require mass preprocessing tasks; however, incorporate all areas of business that should
they are increasingly becoming very participate in creating an effective strategic
important in web environment for providing plan for e-commerce website development,
problem-solving capabilities such as the ones that is integrated with the organization’s
identified for the e-DSS. business strategy. For example,
incorporating HR (human resource) for
allocating the core competencies skills,
supply chain model dynamics and the new
8. CONCLUSION CRM (customer relationship management)
models. Another important area of research
Why do some e-commerce websites will be analyzing the dynamics of B2B and
deliver real benefits to both buyers and how partnership models can impact website
suppliers while others struggle to establish development. Research should also be done
their “offerings?” Because an organization on how manufacturing relationships and web
needs to have a strategic plan for e- mining technologies and EDI technologies
commerce website development that is in be integrated for capturing critical data.
line with its business strategy before it makes

12. REFERENCES
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***

14. COST-PERFORMANCE MODEL
Figure 1: The cost-performance model Table 1: Worksheet for system features and functionality.
Modest Moderate Elaborate
Identification
System features Who are your customers?
and functionality
What information-based
Identification services will you provide?
Identificatio
Benefits and
n Costs
Performance
How will customers get
access to these services?
What will customers be
able to do?
Modest
Moderate What system features will
be included?
Elaborate What information sources
(internal and external)
Benefit/Cost Multiple Attribute must be coordinated?
Analysis Utility Model What security and
confidentiality measures
must be implemented?
Resource
Allocation
Method
What activities will be
Decision outsourced?
Source: Larsen, K.A and Bloniarz, P. ./ Cost Performance Model

15. Cost-Performance Worksheet
Table 2: Cost Worksheet
MODEST MODERATE ELABORATE
First Year Subseq. First Year Subseq. First Year Subseq.
Cost Annual Cost Annual Cost Annual
Organizational Readiness
Training for Technology Awareness 1
Planning for Internet Presence 2
Access for Staff and Other Users
Hardware for End Users 3
Software for End Users 4
Network and Internet Access for End Users 5
Other Vendor Services 6
Human Resources
Start-up Process for Equipment Procurement 7
Establish and Manage Vendor and ISP Contracts 8
Content Development and Maintenance
Hardware for Content Developers 14
Software for Content Developers 15
Network and Internet Access for Content Developers 16
Other Vendor Services 17
Human Resources
Start-up Process for Equipment Procurement 18
Establish and Manage Vendor Contracts 19
Development and Delivery of Staff Training 20
Staff Time in Training 21
Webmaster 22
Editorial Review 23
Content Creation and Coordination 24
Web Site Design and Development 25
Staff Support for Service 26
Programming Support 27
Database Administration 28

16. Table 3:
Cost-Performance Form
Host of Site Infrastructure
Hardware 31
Software 32
Network and Internet Access 33
Other Vendor Services 34
Human Resources
Front-end Research and Technical Evaluation 35
Start-up Process for Equipment Procurement 36
Establish and Manage Vendor and ISP Contracts 37
Development and Delivery of Staff Training 38
Staff Time in Training 39
Network and Systems Administration 40
Web Server Management 41
Operations Support 42
Clerical Support 43
INFRASTRUCTURE AND OTHER SUBTOTAL
HUMAN RESOURCES SUBTOTAL
TOTAL COSTS

17. New Business Strategies
Interacting with Consumers
Across Micro Market
Manage Multi-
Enterprises BTB Commerce firm Value Mass Custom
Nets
Sense & Responds
Behavior
Within the
Enterprise
Develop Strong
Brands Extranet
Enterprise
Build &
Manage Core Intranet
Competencies Enterprise
Knowledge Management
Figure 2:

18. Materials Data
Finance
Process
Supplier Information
Trading
Partners
Customer
Marketing
Figure 3: Distribution

19. Figure 4: Internet Presence Grid With Illustrative Examples
Information content of products
Low High
Large
Office Industrial
Proportion Supplies Products
of
Customers
with Web
Access Food and Consumer
Beverages Electronics
Small
Figure 5: An Intranet with a Proxy Server: Menasce
Proxy External
Server Web
Servers
router
Internet
LAN (10 MBps Ethernet)

20. Figure 6: QN Model Corresponding to the Intranet: Menasce
Clients LAN router outgoing link
ISP
Internet
web server
cpu
cpu incoming
link
disk
proxy cache server