ecommerce by nuhman10


									                                                       MISIT Inc.

            Proposal to Bluesblaster Inc.
          Plan for Ecommerce Implementation

                 Submitted by MISIT Inc,
                   November 9, 2000

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                                                                                    MISIT Inc.

                                       Business Concept
          The music business enables you to have the highest potential for success on the
Web. We realize this opportunity and are going to take full advantage of it with our
proposed business concepts. We want users to visit our site and have all the important
information needed to either purchase music products or to read up on music opinions. will give the consumer quick and easy access to purchasing tickets
and also have the ability to research a certain band and purchase their products. There
will be obvious success because we feel that this site gives a vast amount of information
on one site. Our products will include clothing, music, memorabilia, literature, online chat
rooms with other customers and even some of music’s most popular celebrities. All of
these items can be purchased online and include rebates if the customer receives a
“Bluesblaster account card”. We believe that these types of products will work because
they are the products that basic music consumers are looking for, and there are aspects
that cater to the collector type of music buff.
          All of our products will be organized into different sections of the web site. We will
have our own products that are bought from different manufacturers so we will receive
the sole profit of the purchase off of our web site. Some of the products such as CD’s,
will be subcontracted out from our company to a music store that is widely known. We
will capture a certain percentage of these purchases from a customer using their
Bluesblaster account card on the other company’s web site. We have worked out all of
the logistics of our account cards with the other web sites. As long as they receive the
business and a larger percentage of profit, they have agreed to give us a profit as well.
This agreement was made because we are the ones who attracted the customer in the
first place. In addition, we will sell Bluesblaster authentic CD’s, which will include a wide
variety of tracks that were recorded off of a tour concert (Pearl Jam in Italy, for example).
This type of music is very hard to find and purchase, but with there will
no longer be a hassle. There is also going to be a literature part of our web site, which
will include famous biographies of musicians that can be purchased as well as current
articles on a specific band with updates on their new accomplishments. There will be
books that were written on a band by famous authors that can be purchased.
Bluesblaster will also have a separate web section that will allow the collectors of music
to chat online with other customers and buy, sell or trade music memorabilia. We call
this the “Old School Section”, and it will promote access to any piece of music that a

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customer wants whether it is Clapton’s first vinyl with Cream or tickets to any upcoming
concerts. Of course, with the connections that we have here at Bluesblaster, we will
introduce a “Bluesblaster piece of the week” that online consumers can bid on to buy.
          Bluesblaster will have a deal for all consumers that visit the site. After a certain
number of purchases, you will be able to own a Bluesblaster account card which will give
you a variety of discounts on the products that we sell or with companies that we deal
with. This valuable card offers you discounts on concert tickets through Ticketmaster, 10
percent off any Bluesblaster purchase over 50 dollars and the chance to win concert
tickets to a variety of shows if your Bluesblaster card has made enough purchases. All of
these chances for discounts are just additional perks to what the customer is really
getting. With special promotions, access to any aspect of the music industry within one
web site, and having quality products, Bluesblaster will be the premier site on the

                                    Ecommerce sales in the US

                  Billions of
                                       1998            1999             2000

                                     Ecommerce Overview
          The Web is quickly becoming a leading source for commerce and business
transactions. The popularity and usefulness of the Internet has resulted in a staggering
amount of Ecommerce being conducted each day. Ecommerce stands for Electronic
Commerce and refers to the process of replacing physical transactions with electronic

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                                                                                   MISIT Inc.

transactions and sales over the Internet. The main component of Ecommerce involves
Web sites taking orders for products and services and selling them to consumers.
          A great deal of business is transacted over the Web. Ecommerce is expected to
reach over $15 billion this year in the U.S. alone and over $95 billion throughout the
world. These sales numbers are increasing dramatically each year, and it is estimated
that more than 183 million people will buy online by the year 2003. For business-to-
business transactions these statistics are even greater, and $300 billion in revenue will
be generated this year. There are a large number of Web sites involved in retail sales,
and most of these are based in the U.S. In fact, 90 percent of Ecommerce is generated
through U.S. based sites. This illustrates the competitiveness of Internet retailing and
indicates that a company must have a solid strategy to succeed.
          Retail web sites should develop a strategic plan in order to draw people’s
interest. There are three main steps fundamental for retail sites to attract and retain their
customers. You must first identify the customers’ goals and the company’s goals,
commit your business to building a great customer experience, and then monitor the
customer experience. Some of the specific approaches to draw and maintain traffic on
your web site are to advertise your domain name and the services you provide in search
engines, construct interesting and fresh content for visitors to interact with, and create a
unique and personalized experience that satisfies customers’ needs.
                 In order to retain clientele, retail web sites should provide value and
convenient service. This ability to make consumers return to a web site is often and stay
there for a long period of time is referred to as stickiness. Web sites must have both
high traffic and stickiness to receive high volume sales and loyal customers. Many sites
fail because they do not balance both of these elements.
          The BroadVision software package we have chosen for Bluesblaster will be able
to provide the technological support necessary to successfully carry out commerce on
your web site. The package includes many attributes that will accommodate potential
customers, and allow them to easily make transactions. Its features include payment
processing for credit, debit, and purchasing cards, order confirmation e-mail messages,
and safe encryption software to ensure that transactions are confidential and secure. It
also utilizes JavaScript technology to allow your web designers to create a more
dynamic and interactive commerce web site. A stylish page design along the ability to
make quick and secure transactions is what will create customer satisfaction and repeat
business for Bluesblaster.

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                                                                                  MISIT Inc.

          Personalization and online communities are other emerging innovations utilized
by many retail sites like Personalized web sites are designed to allow
shoppers to create member profiles, receive email updates on new products, customize
products, and browse for merchandise that is tailored to their interests. Therefore,
Bluesblaster could allow visitors to create a profile and preferences so they can
immediately view the products that appeal to them. The commerce software we have
chosen includes what is called a function called “retail intelligence”, which allows for this
type of user customization. You will also be able to build an online community in the
future to create a more interactive environment and help Bluesblaster build a common
network of customers.
          The commerce section on your site will need to constantly change because of
new products Bluesblaster will be offering, and to give customers original content to
view. We have already taken care of this with the high tech computers that were earlier
purchased for your web designers. We suggest that your company use outsourcing for
the server hardware because it would take some of the pressure off your company to
keep up on the latest hardware technology and allow a third party to maintain your
server. By outsourcing this function, Bluesblaster would have more time to concentrate
on the content and products that go on your site rather than trying to manage the traffic
and transactions that occur daily. However, the powerful web server we previously
chose for Bluesblaster would be able to handle large amount of traffic and purchase
orders that will accompany your new Ecommerce section if you decided against
outsourcing. No matter which option you decide to use, the hardware equipment will
work well with the software we have chosen to provide Bluesblaster’s customers with a
straightforward, yet enjoyable shopping experience.


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                                                                                   MISIT Inc.

                                    Website Hosting

What will be needed to host your proposed site on the web?
          First we need to come up with a domain name. With this name we can run your
business from this domain and we can register a unique name that coincides with your
business. For instance the domain could be ( With this domain we
will design a unique page built specially for your clientele to help navigate through the
site as simple as possible. With this domain we can provide the e-mail service through
the same domain, for example (

          To run this domain we can use the server we have come up with to host your site
or another possibility could be outsourcing to a strictly e-commerce development
company to host the site.

What are the advantages and disadvantages of outsourcing this function to a Web hosting firm?
          The advantages of outsourcing are very simple and easy to justify when
budgeting out expenses for the year. Basically, a web-hosting firm will take the initiative
to get to know your company. Create a relationship with your firm and create a web site
that uniquely identifies your business and gives your clients easy access and simplicity
to the site. They handle all the upgrading and storage space for your e-mail and web
page. They use their own servers and technology to create a fast site for your needs.
This can save you meaningless dollars needed while starting up your business.
          The disadvantages are small if you take the correct steps and register with a
competent and professional web-hosting firm. When looking for a company to host your
web site research must be done. You need to find a company and see what types of
clients they deal with and if they would be right for you. It wouldn’t even hurt to contact
some of their clients and see how well the company compliments their business.
Another disadvantage to this is not having complete control over your site, for instance if
their server is down then your site is down. However, we feel that outsourcing this
service will definitely save your business unwanted headaches and large amounts of

How do you obtain a domain name ( for your business?

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                                                                                   MISIT Inc.

          First I’ll go in more detail to explain what exactly is a domain name. A domain
name is a unique address for your business. For instance every computer has an
identity know as an IP address. Now instead of remembering a large grouping of
numbers you only need to remember a specific name. Domain names offer a more
intuitive way to name and find a web site. Each domain name replaces a string of
meaningless numbers (an IP address) with a simple word or expression.
          To obtain a domain name you can do of two things hire a web developing
company that we spoke of in the above paragraph or send an application yourself to the
InterNIC. The application for the InterNIC is a lengthy and in-depth registering
procedure so again we recommend to outsource this to another company. The InterNIC
takes care of site addresses on the web and it makes sure your site name is unique and
not uses by another business or individual.

                            Ecommerce software market share

                          Microsoft                             2.2%
                         Interworld                              2.4%
                            Intelysis                            2.7%
               Sterling Commerce
    Vender                       IBM
                          Intershop                                                5.2%
                      Open Market                                                     5.6%
                              Oracle                                                   5.6%
                               Ariba                                                            8.1%
                       BroadVision                                                                     9.4
           Netscape ECXpert Suite

What sorts of software do you need to conduct financial transactions on the web?
          If you decide to do your web page in-house, this is the recommendation we have
on software. For your software choice we are proposing buying BroadVision Retail

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                                                                                   MISIT Inc.

Commerce Suite. This package will take care of all of your financial needs. This suite
allows our valued customer to manage an account with us by transferring money to your
account during buying, review what is on their accounts are each time they buy, and
even enroll in events that you are advertising during that point in time. You the
consumer of this software will want to have great security on transactions, bill payment
options are based off of checkfree, and all other account problems can be solved using
this software.

What are the advantages and disadvantages of outsourcing this function?
          An advantage of outsourcing this function would be that you could spend more
time improving your product instead of always being your own accountant or web site
technician. A disadvantage is that you have to pay for the service to keep your web site
up and all your financial accounts in order based on someone else’s work on what is
coming in and where it is going. Also, if there is a problem, you will have to wait on
someone else to fix it at their leisure.
          When looking to buy software packages for ecommerce we should look at many
items such as cost, how compatible is the product with your platform, and most
important what functions can this software allow you to utilize. On comparison of
software products we first looked at Actinic’s Catalog 4.0. This product was cheap, but
was not up on technology. It did not allow us to create you an outstanding storefront. It
had its problems with registration, which prevented us from customizing the store for
each of your valued costumers. After that comparison, we decided on Broadvision
software because of all the user options and well as corporate options.

Compare and contrast some of the software packages (in-house) and application service providers
(outsourcing) for Internet transactions/Identification
          Outsourcing your business starts by picking your service provider. In
comparison, SmartAge was our first stop. SmartAge is basically a provider consulting
jobs for companies. Services provided include financial & legal, Marketing & Sales, etc.
With outsourcing a company comes in like we spoke of before with web hosting firms.
The outsourcing provider will mold the financial software for your company to meet all of
its e-commerce needs. This is where outsourcing pays off. With outsourcing the
software provided is based on your company and yours alone. They take the basic
ideas and needs of other software packages and go the extra step to provide a unique

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                                                                             MISIT Inc.

experience for your patrons. With commercial software however, it gives you the ability
to implement the software for your company but not uniquely set it alone from others.,10475,2636557,00.html

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