InformationWeek
Defining The Business Value Of Technology
June 21, 1999
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Legacy apps, back-end systems, and security top the to-do list
By Oliver Rist
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xperienced network and IT managers who don't blink at designing and running complex infrastructures often panic when charged with a critical electronic-business initiative. Is it really that different?From a technical point of view, E-business is much the same as any other network expansion project--but that doesn't mean it's simple. More than just a fast Web server platform has to be considered; the bigger challenge comes when back-end business functions need to be integrated into the system. Often, an automated workflow system is required between the E-business installation and legacy system software. In addition, the rule today is to keep a site running at all costs, which goes beyond basic server redundancy; it includes the ability for high-speed Internet connections to fail over. Airtight security and a hard look at Internet traffic planning, therefore, are also high on the to-do list.
"Most people fail to realize that competitive E-commerce is very complicated," says Sidnie Feit, chief scientist at research firm the Standish Group. The biggest problem Feit sees is integrating existing legacy systems with Web technologies. "IS managers fail to realize how much muscle is required on the back end," she says. For example, Feit points to old custom legacy applications or back-end systems that rely on complex software platforms, such as an existing Oracle database application or an old general-ledger application that can "foul up an E-commerce ef-fort." Migrating these systems adds to development time, since custom-coded middleware is needed and it can increase costs as well.
Nevertheless, designing an E-commerce infrastructure is possible if IT managers consider several critical technology factors. Besides back-end integration and redundancy, transaction speed is the paramount hardware infrastructure goal. That's closely followed by workflow automation, security, payment considerations, and hosting options.
One-stop deals from hosting services make E-commerce sound simple. It's not. While a few Web-only businesses may have an easy time getting started this way, most large businesses should consider E-business as a totally new model. Even in businesses that don't do direct sales--say, an insurance company providing online claims services--processes and systems will need an overhaul.
Offerings such as a multivendor solution recently released by iMall.com Inc., a service provider for online storefronts, in conjunction with IBM and First Data Corp., an online merchant service provider, can help if customers just need a no-hassle storefront. The iMall solution uses IBM's Home Page Creator service, First Data's electronic-payment services, and iMall's www.stuff.com E-commerce portal. But they're the just the first stage.
When you're moving to a round-the-clock model, Web and transaction servers need to be fast enough to handle large user loads, but they also need to be backed up by an electronic order and payment system that can function largely unattended during off hours. Hosting services provide Web startups with redundancy and even payment systems, but they're mostly designed for simple storefront E-commerce sites. At the high end, MCI WorldCom, PSINet, and Sprint offer connectivity to high-speed Internet backbones. Redundancy is already factored in, so the next step is more sophisticated hosting services, such as collocation, round-the-clock remote hardware management, and EDI/EFT data services.
Barnesandnoble Writes The Book
Barnesandnoble.com LLC--which recently issued an initial public offering as an independent business from the brick-and-mortar retail bookseller--faced these issues when it began operation. "Our major worry was legacy conversion from the retail business," says CIO Gary King.
Barnesandnoble.com has a database of 1.85 million books and has grown from $14 million in revenue in 1997 to more than $100 million in 1998. Its retail stores have some of the same back-end requirements as the online business, King says, but the implementation process changed once it moved to E-business. For example, a retail store may go to wholesalers to find out-of-stock books, but the online business requires different search technologies, including new queries and back-end database work.
continued...page 2, 3
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