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March 27, 2000

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E-Commerce Platforms:
New Platform Options Fuel E-Commerce

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  • Personalization and content management: As online commerce itself becomes a commodity, businesses need new ways to differentiate themselves from their competitors. Personalization and content management are great ways to forge personal relationships with customers, and to ensure they are presented with dynamic information that's tailored to their own preferences or profiles. While vendors such as BroadVision Inc. have incorporated their own content-management engines, others are partnering with third-party vendors for capabilities such as ad management and one-to-one marketing.

  • Business-to-business commerce capabilities: As business-to-business E-commerce continues to expand, E-commerce platform vendors must start addressing the specialized needs of business trade. For example, E-commerce platforms must integrate directly with business applications such as enterprise resource planning systems, accounting systems, and production systems. In addition, such systems should integrate with outside suppliers and dealers, using supply-chain-management techniques to bring new efficiencies to the trading relationship. Finally, a company's E-commerce platform must be able to support different contract terms or purchasing agreements for different buyers.

  • Fulfillment and delivery: For most E-commerce sites, fulfillment was treated as an afterthought, with painful consequences (witness the fulfillment debacles of many retailers during the 1999 holiday-shopping season). A good E-commerce solution-- especially for business-to-business applications--must integrate with inventory systems, production systems, and shipping systems to ensure that the right goods make it to the right customer at the right time. In addition, many more sites need the ability to fulfill orders electronically, which requires real-time order validation and download for applications such as software or content sales.

  • Standards support: Integration is as critical as ever. E-commerce systems that don't integrate with legacy systems, back-end databases, and third-party applications are missing out on delivering on the real value of E-commerce. Middleware technologies and object-oriented programming are used extensively to address these needs. For this reason, standards compliance is a key need, as companies need open and common methods for tying existing systems into their commerce platforms. In particular, standards such as the Extensible Markup Language, Microsoft's Component Object Model, Enterprise JavaBeans, and Java 2 Enterprise Edition are emerging as major requirements that make large-scale integration feasible and help protect your investment in an E-commerce platform as your back-end technologies evolve.

    Mergers and acquisitions continue to occur at a rapid pace. Companies in the Net economy are using their stock value as currency to make acquisitions in order to show top-line growth to Wall Street. Brick-and-mortar companies in industries such as banking and insurance are consolidating faster than ever. Heavy emphasis is placed on standards compliance to ensure integration among disparate products. These common interfaces and standards let companies protect their investment and eventually provide the opportunity even to migrate to a different environment, if necessary--without excessive effort and in a reasonable time frame.

    Abstraction of the application into an n-tiered model, where there is distinct separation between the data layer, the business layer, and the presentation layer, is also becoming increasingly important. However, the challenge remains to separate "vaporware" from real solutions. There remains considerable variance among vendors with respect to the degree of compliance with such object standards. It is of paramount importance to get to the second and third levels of questioning with these providers of commerce solutions in order to architect solutions effectively for the long run.

    Finally, robustness and scalability are areas that all vendors claim to have addressed, but few have demonstrated. While evaluating architectures, companies should consider aspects such as load-balancing capability, connection pooling, clustering, and multiprocessing in order to determine whether the product has the ability to scale with their particular business requirements.

  • Time to deployment: As always, the time it takes to build and roll out an E-commerce solution is a chief concern for companies that need to get new solutions into production yesterday. Thus, it's important to look for E-commerce platforms with development environments that are flexible yet simple enough to support fast deployment, and easy enough to let individuals from marketing or line-of-business areas play a role in the development process. It's one thing to talk about all the capabilities that we think E-commerce platforms should have, but real-world testing may show us something unexpected.

    During the next several weeks, we'll be conducting thorough evaluations of as many as 15 E-commerce platforms to see what they offer. We'll also ask about the kinds of applications the vendors have in production and find out about their strategic direction for enhancing their products in the next year or so.

    So watch this space for the analysis of our E-commerce platform evaluation this summer. With so much riding on your E-commerce strategy, you can't afford to fall behind your competitors in taking advantage of what today's products can do for your business.

    Jeetu Patel is VP of research, Joe Fenner is a senior technical writer, and Lisa Matway is an analyst with Doculabs. Doculabs is an independent research and advisory firm that specializes in helping companies choose the right technologies for E-business. Vendors interested in participating in the upcoming benchmark evaluation of E-commerce platforms should contact Doculabs at 312-433-7793, www.doculabs.com, or info@doculabs.com.

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