Channel Integration Prince Dudhatra 9724949948

Channel Integration
Merging Online Sales

with
Offline Sales
Charles R. Jones
JHU Summer Session 2000
Information Systems Architecture
Presentation Overview
• PART I: Review e-business vs. bricks-and-mortar (B’nM)
shopping attributes (Ch 8)
• PART II: Summarize an interesting shopping mall example
(CIO Magazine, 7/15/2000) and discuss obvious issues
• PART III: Develop extrapolations
– Conceptual
– Hardware
– Software
– Issues
prince dudhatra-9724949948
PART I
Review e-business vs. bricks-and-mortar

(B’nM) shopping attributes (Ch 8)
What Are “Channels”?
• How products get ordered/purchased:
– B’nM Stores/Malls
– Online/Over the Internet
– Mail Order Catalogs/Magazines/Telephone/Fax
– Door to door sales/Amway/Mary Kay/Avon
– Wireless and TV/Cable
• PLUS: How products get
EFFIC
distributed/delivered/returned IENTL
CONV Y/CHEAP
ENIEN LY
TLY
Some Other Terms of Art
• Personal Digital Assistant (PDA)
• Point of Sale (POS)
• Value Added Networks (VAN)
s s a ri l y
• Business to Business (B2B) t n e ce
i s n o
• Businesserto: B ’n M
Customer (B2C) t he rs .
m i nd l e b y o
e
•RCustomer o tog n i za
Customerb (C2C)
rec
• Extensible Markup Language (XML)
• Electronic Data Interchange (EDI)
• Bar Codes
Advanced Terminology
• Automatic Data Capture (ADC)
Technologies (10 types)
– Two are Radio Frequency (RF) users:
• Radio Frequency Data Communications (RF/DC)
• Radio Frequency Identification (RF/ID)
– Others listed in a later slide
Advanced Terminology (Cont.)
XML related terms:
• Document Type Definitions (DTD)
• Extensible Stylesheet Language (XSL)
(More on these later)
It’s Only Good Business
• Good reputation over a long time
• Good products and services
• Good prices
• Secure transactions
• Customer interface important
• Customer satisfied or return product
• Full refunds
Skip over the basics?
Focus: Online vs. Bricks
• B’nM Purchases
• Online Orders
• Some of each?
• Both?
• Can we merge?
• Should we merge?
• How to merge?
B'nM Stores Are Characters
• Salespeople more effective

• Touch and try out/try on products
• Easy returns (if a B’nM purchase)
• Not always convenient (e.g., Australia)
• Hard to comparison shop
(cont.)
• Takes time - worth it for one item?
• Need transportation, parking, walking
• Limited store hours
• Limited selection/space limitations
• Seasonal inventory/space limitations
(cont.)
• Labor intensive: stocking/sales/cleanup

• Not geared for out of town shipping?
• Expensive commercial property lease
• Shoplifting/security staff
Online Context
• Online Capabilities: Sales/share

info/training/etc./etc.
• Sales:
– Fewer Impulse Purchases
– Comparison shopping easy
– Can’t try on clothes or hold products
– Hard to return merchandise
Online Context: Sales (cont.)
• Track purchases and market
accordingly
• Can do reminders for new SYN
N ER
purchases ET GIS
WO TI
• Online security issues RK C
S!
• Advertise related products/services
• Email option
Online Context: Sales (cont.)
• 24/7 service
• Recognize repeat customers
• Store credit card data
• Easy to add and delete/change mind before
purchase
• Do not have to haul stuff around - virtual
shopping cart
Online and Mail Order
Harder to return
merchandise?
• Shipping costs go up
• Customer hassle to ship back
• Still need to get the right product
Easier if can return at a

B'nM store?
Easier if can return online
purchase to a B'nM store?
• Depends on how well the online business
(manufacturer?) is integrated with the B'nM
store
• Have to cancel online purchase?
• Have to create new purchase?
• Many businesses/manufacturers,
and many stores (geometrically complex)
Cancel Online Transaction?
• Keep (or ship back) returned products?
– Defective or wrong size/color
• Refund to customer from what account?
• Sales incentives involved?
– Web site B2B referrals (e.g., Amazon.com)
• Full refund minus shipping?
– One or two directions?
– Apply to B'nM store purchase?
Create New B'nM Store
Transaction
• Same or related product?
• Same price?
• Sales tax?
• In stock?
• Entirely different product instead?
• Net impact on manufacturer feedback data?
Other Channel Merge Issues
• Returning B'nM store merchandise to the
bl em
Pr o
online channel could be even harder
p l ex
• Under Integrated Mall, might want to be
C om
able to return product to a different store
(Hechts instead of Sears) and get a different
product from a different manufacturer
• How much of this is worth tracking/doing?
Mall Business Integration
• Making 100 stores work together
• Competitive edge for mall?
• Too complicated and expensive? Training?
• Hardware needed? Automation challenge?
• Software needed? XML? XHTML?
• Done before? Examples? Did it work?
PART II
Summarize an interesting
shopping mall example
(CIO Magazine, 7/15/2000)
and discuss obvious issues
Real Life Example
of a Mall
Integration Project
• By Meredith Levinson, CIO magazine,

July 15, 2000; p115
• Integrating Mall Shopping (at Simon Property
Group malls) with Online Shopping
• Adult and Teenager Web sites
Objective
• Improving the customer's

experience in brick-and-mortar
shopping at an otherwise traditional
shopping mall
•New hardware and software applications

•Created/financed by a commercial real estate company
Problem or
Opportunity?
• The project's originating issue was that "…
customers didn't understand why they
couldn't return something to a store if they
bought it on the web site"
• Simon saw a synergistically strategic
opportunity for a mall landlord (B2B)
What Simon Did
• Established a spin-off company named
Clixnmortar to integrate malls with online
• Testing concepts at three Atlanta malls
• Mall-customers use hand held, bar-code
scanning computers (PDA) to facilitate
shopping
New Shopping Concept
• Customer scans bar code information into the
portable computer at any and all of the mall
stores
• Decides at anytime but at least on exiting the
mall whether to buy online or at the mall
• Accumulated bar code data input to the
customer's "personal" Web page (created just
for this purpose) for later access
New Shopping Concept
(Cont.)
• B2B Strategy: Being integrated with a
given landlord’s system makes it difficult
for a mall store to go shopping for another
mall (Solidifies micro business relationship)
• B2B Strategy: If successful, could capture
major retailer chain for new malls
(Creates a macro business opportunity)
OPPORTUNITIES ARE LIMITED!!
Skip over details?
Network
Hardware
• Clixnmortar’s “MerchantWired” hardware

infrastructure package developed
• Additional network hardware to connect to
the already installed business-specific
systems (??)
• LAN among WANs?
Mall LAN Connecting Mall Stores?
Borders
Books
Hechts Sears
My Mall
LAN
ta r
Da ome
Radio Shack Starbucks

st
Cu
Burger King
How about the prince dudhatra-9724949948

Internet?
Better to Connect to Internet?
WWW
Customers
Borders
Books
L , A N Y
Hechts
Y M A L Sears
A N A
ANY,Mall N Y
ST O R ELAN
T O M E R
CU S
ta r
Da ome
Radio Shack Starbucks

st
Cu
Burger King
How about the prince dudhatra-9724949948

Internet?
Internet
Software
• Tenant Connect.com: Clixnmortar Internet
connection service
• Temporary Web page for each customer
• Two related but different Web sites wisely
separate the teens (www.fastfrog.com) from
the adults (www.yoursherpa.com)
Stated Advantages
• Product and ordering information remains
available on personal Web site
• Customers can mix and match at different
stores in the mall (The mall effectively
becomes one big, integrated store)
• Tactical mall business advertising on PDAs
PART III
Develop extrapolations
Conceptual
Hardware
Software
Issues
Concept Extrapolations
• WWW Customers could share (network)
their shopping information with their
friends
• Networked opportunities with other
companies and consumer organizations
• Multi-Mall opportunities, too
Skip to Hardware
Concept Extrapolations (Cont.)
• Links to many/all businesses, all working
within the same shopping paradigm
• Horizontal (diverse) business mergers a
natural result
• My favorite flower shop, my favorite drug
store, my favorite book store….
Concept Extrapolations (Cont.)
• Highly targeted advertising: Current needs
and preferred sources for each customer
• Manufacturer connection: Could auction
surplus merchandise to customers already
identified as interested in specific products
• Wish lists: Public part of private Web
pages….
PART III
Conceptual
Hardware
Software
Issues
Hardware Extrapolations
(Rather Obvious?)
• Bar code readers
– Cost seems high (each customer; LAN)
– Unique and limited equipment
– Maintenance/replacement/recharge
– Not a self-serve operation
– Helpers at each door
• Need to combine with something else,
probably cell phones (obvious?)
Skip to Data Collection Systems
Cell Phone Sellers
• Competitive market/value added option
• Scan bar code data and upload indirectly to
cell phone company and then to personal web
site
• Probably a complex undertaking relative to
data stream (possibly frequent, short, and
sporadic to different cell phone systems)
• Expensive option
POS Hardware Options?
(Not as obvious as cell phone option)
• Each store could upload ADC personal Web
site data without the new mall-specific LAN
• Credit Card Uplink, chain store network, or
direct Internet connection
• Customer ID already on credit card
• Could also use bar code for ID and easy POS
navigation to personal web site
SOTA Options?
• There are other automatic data capture
(ADC) options to consider
• State of the art (SOTA) is changing rapidly
• ADC systems information available on Web
sites. Student insights at:
<www.frontlinemagazine.com/educate.htx>
Data Collection Systems
• Bar Codes
• Biometrics
• Card Technologies
• Contact Memory
• Electronic Data Interchange (EDI)
Data Collection Systems (Cont.)
• Machine Vision
• Optical Character Recognition (OCR)
• Radio Frequency Data Communications
(RF/DC)
• Radio Frequency Indentification (RF/ID)
• Speech Recognition
Terminology Link
Mall Hardware Gadgets
• Mall stores on mall network (plus own business
chain network?)
• Mall network compatible hand held
bar code readers
• Issued to customer at mall entrance
• Returned on departure
• Data/info uploaded to each customer’s personal
Web page provided by mall
Better Mall Hardware
Gadgets: Alternative Ideas
• Replace dedicated PDA with bar code
reading cell phone
• Replace customer-carried PDAs with
rack/shelf DAs
– Identify customer using bar code card or card
magnetic strip
– Upload to personal Web page
– Display all at checkout and at home
PART III
Conceptual
Hardware
Software
Issues
Better Software Ideas
• Shop at home and list on personal Web site

everything you want to find at the mall
• At the mall, using posted location bar
codes, get directions (on PDA or cell
phone) to closest store having one of your
numbered items
Better Software Ideas (Cont.)
• Regardless of where you park, you get an
optimal shopping sequence that minimizes
the number of steps
• Optionally, leave the heavy stuff to buy
near the end of the mall visit, making it
unnecessary to carry a heavy item around
any longer than needed.
Skip Languages
WWW/Internet Software
Web Page Languages
Old/New
• HTML - Hypertext Markup Language
• JAVA - Coffee
• JAVA Script - Coffee that can write
• Dynamic HTML - Cascading Style Sheets
• XML - Extensible Markup Language
• XHTML - Extensible HTML (Jan 2000)
HTML vs. X-Man
• HTML provides "best effort" presentation
– Browsers ignore what they do not understand
• XML and XHTML are less forgiving
– Accuracy is expected
XML Basics
• Transaction data are understood exactly,
including metadata/format and description
• Likely an Internet revolution for business
• Intel Corporation XML "network devices”
• Internet packet traffic on the Internet analyzed and
prioritized "on the fly”
• Can send different traffic to different routers or
back-end financial servers (for example)
• Can also "rollback" or reroute rejected XML traffic
(XML error control) "on-the-fly"
Skip XML Details
XML Basics (Cont.)
• XML Credibility
– Numbers of Players-- and Their Size
– Hundreds of companies (and all the big ones)
involved with and vigorously pursuing XML
opportunities
– Product example:
• WebMethods B2B e-commerce server
• Stores different document types
• Converts them into XML for delivery over the
Internet
XML Basics (Cont.)
• XML Data Exchange Infrastructure
– Defined business content (or any other
industry-defined content)
– Uses Document Type Definitions (DTD)
• Only needed for use in business-to-business data
exchanges
– Uses Extensible Stylesheet Language (XSL)
XML Basics (Cont.)
• Extensible Stylesheet Language (XSL)
– formatting and manipulations
– Interact with XML data, intelligently evaluating
data for conditional (e.g., greater than and less
than) actions
XML Basics (Cont.)
• Use for Java tools in the XML environment
– Assists in the integration of the XML and
HTML environments
– Use to manage and translate XML products
between vertical industry applications
– For example, can facilitate Oracle database
management in the XML environment
XML Basics (Cont.)
• XML and Legacy System Links
– XML-based software being developed
to look backward
– Many legacy databases are out there that are
XML-challenged
– Now can be fixed by XML and JAVA
programmers
XML Basics (Cont.)
• Customer communications equipment
• Some is still relatively archaic (telephones and
facsimile machines)
• XML can be used to capture any input device
content electronically (even verbal input and fax
images), including from third world countries
• Can transport that input either to the right person or
the right software for direct use (on screen, on
paper, or voice)
PART III
Conceptual
Hardware
Software
Issues
Issues
• There are many malls, so each customer
could end up with a Web page for each mall
• Maintenance, battery charging, and
replacement of PDAs is expensive
• Customers can be intimidated by computers
• Carrying around “one more thing”?
Issues (Cont.)
• People-intensive at each mall entrance/exit?
• Not everyone is on the Internet
• The need for an additional mall-specific
network seems invalid
– Many stores already on an Internet friendly
network with their parent companies
– Redundant/parallel data uploads to two
networks at POS registers
Issues and Concerns (Cont.)
• Too many players involved, making DBMS too
complex to manage transactions/updates
• Key players are the manufacturer and the
customer
– Underlying scenario is “Customer orders from
manufacturer, who sends product”
– Everyone else is a facilitator (or a delayer)
– Facilitators need to “see” and modify the single
customer/manufacturer database
Context Diagram
Manufacturer
Provides Product
Product
Sales Data?
N S
IO
Product Online
Sales
Integrated Mall A T Order
Data
C
Data?
Chain Stores
LI System
Internet
P
Carries Customer
Product Product
M
CO
Provides store Interest Page
info Data
Submits Order Data

NEED TO AGREE
ON THE OVERALL Customer
PARADIGM prince dudhatra-9724949948
Presentation Summary
• PART I: Reviewed e-business vs. bricks-and-mortar
(B’nM) shopping attributes (Ch 8)
• PART II: Summarized an interesting shopping mall
example (CIO Magazine, 7/15/2000) and discussed
obvious issues
• PART III: Developed extrapolations
– Conceptual
– Hardware
– Software
– Issues
Motivational Thoughts
• Still need a “compelling customer benefit”
• May have to gradually develop this benefit
in the customer’s busy world
• Only reputable companies need apply - no
room for crooks
• XML is far more difficult than HTML, so
this part of High Tech will be even higher!

Channel Integration Prince Dudhatra 9724949948

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Channel Integration

Merging Online Sales

Review e-business vs. bricks-and-mortar

(More on these later)

• Salespeople more effective

• Labor intensive: stocking/sales/cleanup

• Online Capabilities: Sales/share

Easier if can return at a

• By Meredith Levinson, CIO magazine,

• Improving the customer's

•New hardware and software applications

• Clixnmortar’s “MerchantWired” hardware

Radio Shack Starbucks

How about the prince dudhatra-9724949948

Radio Shack Starbucks

How about the prince dudhatra-9724949948

• Shop at home and list on personal Web site

Submits Order Data

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