E-commerce &

E-commerce &

Java
How Java Professionals can
tap into the largest ecommerce opportunity
Agenda
The
E-commerce Boom
Focus Areas for companies
The E-Commerce platform
Implementation Options
The Solution Providers
The Opportunity
Emerging trends
The E-Commerce
Boom
In the US and in India
E-commerce Boom US
Census view
Total sales via e-commerce in the US have grown

from $27.6 billion in 2000 to $143.4 billion in
2009, a compound annual growth rate (CAGR) of
20.11%
As of Q2, 2010, according to the US census
bureau, about 4.7% of the total sales are
attributable to e-commerce related activities.
From Q4 2009 to Q2 2010, it was seen that growth
in e-commerce was 14% - which is double the
percentage of growth for total sales during that
same period.
However, the % growth has declined considerably
over the years though the overall numbers are
high.
% change from the same

Quarter a year ago
Quarter
Total sales
E-commerce
Q4 2009
2.1
14.6
Q1 2010
6.3
14.3
Q2 2010
7.5
14.0
Source:
http://dstevenwhite.com
E-commerce Boom
Forrester view
Forrester estimates the 2007 e-commerce

revenue at $175 billion and projects that
it would grow to $335 billion by 2012.
This is in part due to the fact that sales
are shifting away from stores.
It is also partly due to the fact that online
shoppers are less influenced by adverse
economic conditions in a survey of
online shoppers, only 20% stated that
they would cut back on online spending
while a survey in 2008 on the entire
population indicated that more than
2/3rds would cut down their spending due
to the economic crisis.
According to Forrester, the E-commerce
contribution to sales became 6% in 2007.
The projection for 2012 is that 10.7% of
the entire shopping would be online.
If we exclude autos and food that account
for 50% of all sales, the penetration is
more than 13% i.e. 1 out of $7 that is
spent, is spent online in the US.
Around 88% of people in the US state
that they have purchased online in the
past.
Source Forrester
E-commerce Boom in
India
Internet and mobile association of India states that e-commerce in India is growing at the
rate of 70% annually and has grown 500% since 2007!
Estimate for 2010 was $6.79 Billion up from $1.75 Billion in 2007.
Online travel dominates market share at 80%
Increased 3G coverage is expected to boost the digital downloads share from mobile phones.
Focus Areas
For E-commerce sites
Develop Online Brand

Equity
According to Forrester, majority of online customers:
Had a product and website in mind
Shopped only with one retailer before buying the product
Hence it is important to:
Attract customers to your site i.e. develop an online brand
Drive existing customers to quickly close on the sale.
E-commerce Focus areas

Customer acquisition
Customer retention
Sales in other channels
Brand awareness
The Universe of new buyers is huge hence many e-commerce sites focus on
customer acquisition.
Retention of existing customers is next since customers dont typically shop at
too many retailers before buying.
Mobile, especially, opens up new frontiers to e-commerce.
Brand awareness brings in a customer to a website.
E-Commerce
Platform
Functional & Technical vision
Re-platforming trends
Why re-platform?
Better User Experience

Better business management
with tools such as CMS,
Analytics etc.
Better monitoring of
platforms.
Better backend integration
Drive increased multi channel
support.
Landscape for customer

chat
Store
locator
shop
User reviews
& feedback
communit
y
Expert
opinions
suppor
t
Landscape for
Management
User
ID &
Roles
Collates
feedback
Takes
order
s
Does
content
manageme
nt
Shows
store
locations
Allows
chat
Maintain
s
E-commerce
Application
Fosters a
community
User
Personalizes
user experience
Records user
behavior
Integrates
Other apps
The Options
For E-commerce
implementations
Products/Frameworks in
use
DEPENDENCY
MANAGEMENT
AOP
FRONT END CONTROLLERS
MODEL
VIEWS
JAVA SCRIPT
CROSS BROWSER COMPATIBILITY
MULTI CHANNEL
DI
PORTAL
E-COMMERCE
PACKAGE
FORUMS
DISCUSSIONS
STACK
PERSONALIZATION/
PROMOTION
TYPICAL WEB APP COMPONENT WEB ANALYTICS ANALYTICS

ENTERPRISE APP COMPONENT
E-COMMERCE APP COMPONENT
IM
CHAT ROOMS
PRESENCE
COMMUNITY
BLOGS
SOA
USER BEHAVIOR
TRACKING
WAREHOUSING
SHOPPING CART
PRODUCT CATALOG
PRICING
CROSS SELL/UPSELL
CHAT
MVC
ORDER
ORDER FULFILLMENT
INVENTORY
MANAGEMENT
ORDER TRACKING
SHIPPING
WEB SERVICES
ASYNCH MESSAGING
REST
UNIFIED SIGN IN
COMMON THEMES
COMMON LAYOUTS
(HEADER/FOOTER)
SSO
CMS
PAYMENT
GATEWAY
TEMPLATES
PAYMENT
DYNAMIC USER GEN CONTENT
PROCESSING
MULTIMEDIA
PUBLISHING WORKFLOWS
RULES
PROFILE BASED
PERSONALIZATION
PERIODIC PROMOTION
SINGLE SIGN ON
AUTHENTICATION
AUTHORIZATION
ID MANAGEMENT
E-commerce Options for

organizations
Outsourced
Fully hosted store and
fulfillment providers
Provide end to end
from e-commerce
store front to order
management to
fulfillment.
Easy set up with
minimal customization
Expensive with the
cost being a
percentage of the
sales. (can be as high
as 10%)
Examples include
Amazon, Frys, Digital
River and GSI
SaaS Software as a
service
Vendor provides a
store that can be
customized along with
hosting.
Faster time to market
with lesser upfront cost
Business logic
customization is limited
Few vendors have
demonstrated the ability
to scale in this space
Examples of vendors
include Digital River,
MarketLive and
Demandware.
Hybrid Solutions
Fully functional
package offerings
from the likes of ATG
and IBM who mix
their powerful
solutions with hosted
solutions.
Shortens
implementation times.
Ability to leverage a
powerful product.
The model has not
been proven yet.
Customized
Fully customized solution
Provides a fully
customized solution with
complete control.
Powerful e-commerce
packages are available
with the full ability to
customize
The organization owns
the complete solution
without any requirement
for revenue sharing.
Large upfront investment
can be a huge flipside.
Large licensing,
infrastructure, QA, product
support costs.
Players include ATG, IBM,
Microsoft
The Outliers:
There are companies such as Amazon, E-bay etc. whose scale is so substantial that no Out of the box
packages fit their needs. They have their own highly customized e-commerce implementations.
On the other hand of the spectrum, there are companies that invest in the development of their own ecommerce solutions or invest in open source offerings such as Magento and CMS such as Alfresco.
The Solution
Providers
Key Players
Key Players
As of Q4 2010 Forrester research identified
the key E-Commerce vendors and put them
into their famous quadrant as shown here:
ATG, WCS, Hybris, iCongo, Fry and
Demandware emerge as market leaders in
both their current offering and strategy for
the future.
Demandware, Fry and iCongo have been
more of platform based solutions whilst
ATG, Hybris and WCS are licensed software
solutions.
Surprisingly, Microsoft despite its strong
market presence does not score high
because it is an incomplete solution and
needs to be matched with their Share point
and BizTalk offerings.
The Java Stack

ATG
Hybris
WCS
Customer base
400
Over 300
1200
Features
Large scale implementations,

B2C, Retail, Media,
Entertainment, Data Anywhere
architecture, personalization,
targeters etc.
Core platform enhanced with
extended capabilities like
natural language search,
business intelligence, Web
analytics, customer service,
and chat
Great for B2C weak in B2B
Strong multichannel abilities.
Strong 2010 with significant

updates to business user
management tools and
scalability.
Strong product content
management tools.
Strong catalog management,
enterprise integration and
globalization/internationalizatio
n.
Extremely extensible.
Rich set of ecommerce

capabilities supplemented with
great integration features.
IBM Management Center is a
great industry leading business
user tool.
Add on modules include a rich
call center application, a
natural language search
engine, and a multichannel gift
registry
Strong marketing and
campaign management
features
Lacks content management and
sophisticated reporting and
analytics.
The Body Shop, Bulgari,

Ericsson, Henkel,
Adidas,Conrad, Berner
Sony, Barnes & Nobel,

REI, IKEA, Sears, Dillards,
LL Bean, Abercombie &
Fitch
Integrates with LiveHelp to

provide click to call, click to
chat and email response.
Customers
Best Buy, American Eagle,

Neiman Marcus, Nike, J
Crew, Cabelas, AllState
The Opportunity
For Software Professionals
Kind of work
System
Integration
Demanding
NFRs
Portals
Make multiple systems

work
Synch/Asynch batch
processing
High scalability
High security
Uniform Layout
Consistent themes
Single Sign On (SSO)
Personalization
Same menus across apps
Self learning
Seasonal
Promotions
Analytics integration
Cross-sell/up-sell
CMS
Flexibility to add to the site

Flexible customization of
the site
Product descriptions, labels
in various languages
Core
E-commerce
Catalog management
Browse/search functionality
Shopping cart/checkout
Payment gateways
Fulfillment integration
Developer Skills In
Demand
CMS
E-commerce
Knows
Knows
CMS package.
Creates CMS templates
Publishes CMS workflows
Integrates CMS with other
systems
ETL
Expertise in batch processing.
Can do translations from one
format to the other. Might have
an expertise on XML if required.
Performance
Knows all about profiling.
Query & ORM optimization
Caching
Monitoring
E-commerce
package(s).
Knows to handle product
catalogs, shopping carts, pricing,
integration etc.
E-commerce
site
Infrastructure
Infrastructure design and set
up
Topology design.
Infrastructure tuning and
monitoring
Scripting.
Deployment and environment
setup.
SOA
Knows web services
May have expertise in REST
Knows about messaging,
Enterprise Service Bus etc.
Database
DBA
Data modeler.
Adept at writing SQL.
Fine tune databases.
Can understand ORM and make
sense out of relationships.
Build & Release
Writing build scripts
Configuration Management
IDE setup and integration
Continuous integration set up
Automated testing set up.
Release management
Trends
For the future a perspective
Emerging Trends
Multi channel commerce is the biggest trend.

Of late, T-Commerce E-commerce in tablets is gaining popularity
with around 50% of mobile purchases being made via Tablets. 7.6%
of US population is expected to be on tablets by end 2012.
Visual searches would rise. Statistics from Bing state that people
are able to process video + text 30% faster than just text. Hence ecommerce content with visual content that can be searched for is
very powerful.
Cross channel. Sometimes a user might have a predilection towards
one channel rather than another one. A user with an abandoned
shopping cart from one channel might be presented with an
alternate form of purchase through another channel. Ex: If a user
adds a shirt to a shopping cart and abandons it, it is possible that
he or she be presented with the nearest store where that shirt is
available.
Questions?
Thank you
Send comments to
[email protected]

Uploaded by

Uploaded by

E-commerce &

Total sales via e-commerce in the US have grown

% change from the same

Forrester estimates the 2007 e-commerce

Develop Online Brand

E-commerce Focus areas

Better User Experience

Landscape for customer

TYPICAL WEB APP COMPONENT WEB ANALYTICS ANALYTICS

E-commerce Options for

The Java Stack

Large scale implementations,

Strong 2010 with significant

Rich set of ecommerce

The Body Shop, Bulgari,

Sony, Barnes & Nobel,

Integrates with LiveHelp to

Best Buy, American Eagle,

Make multiple systems

Flexibility to add to the site

Multi channel commerce is the biggest trend.

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