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Steps in a project and costs of ecommerce (lecture)

Written by: Jonathan Briggs

December 2, 2005 [5698 views]

It is hard to estimate how much a project will cost without analysing the specific requirements and the environment in which the project is being implemented.

In this session we will explore the steps often found in a project and discuss the time involved in executing those steps

  1. Project planning including creative, technical, integration, budgeting, testing and promotion
  2. Setting and agreement of project goals and constraints
  3. Assembling and briefing the project team
  4. Brainstorming creative ideas
  5. Competitor and market analysis
  6. Analysis of business logic (selling, fulfilment, returns)
  7. Wireframing/diagramming of processes and functionality
  8. Agreement of functionality, specifications and plan within budget
  9. Selection of platform, tools and hosting environment
  10. Graphical design (within brand guidelines)
  11. Conversion of design into templates and style sheets
  12. Product modelling and database design
  13. Promotion design and logic
  14. Design of decision support tools to help shoppers select, choose and experience
  15. Writing of all text pages (Terms & Conditions, Privacy)
  16. Design and implementation of CRM integration
  17. Design of customer service processes and systems
  18. Design of testing regime and tools
  19. Implementation within shopping software, CMS or from scratch
  20. Integration with stock and ordering systems
  21. Integration with payment partner
  22. Photography
  23. Collection and manipulation of content
  24. Testing of business logic
  25. Testing with users
  26. Testing for DDA compliance
  27. Cross browser and platform testing
  28. Delivery and training (editorial and CMS)
  29. Promotions and shop management
  30. Design of reputation strategy
  31. Implementation of reputation strategy
  32. Design of PPC campaigns
  33. Implementation of PPC campaigns
  34. Integration of analytics and monitoring software
  35. Monitoring of SERPS and PPC
  36. Support and management of problems and issues
  37. Changes in requirements following feedback and experience
Not included
  1. Marketing
  2. Selling
  3. Contract negotiations
  4. Project management
  5. Meetings and reviews
  6. Iterations
  7. Client changes of requirements
  8. Technical roadblocks
Questions about budgets
  1. How long would you expect each of these steps to take?
  2. How many people would you expect to be involved with each step?
  3. Do less experienced people cost you less?
  4. What would you expect each person to cost per day?
  5. Is it possible to leave any of the steps out?
  6. Which parts of the project could be outsourced?
  7. How significant is the choice of software tools to this process?
  8. Which of these steps would you expect to be the most expensive?
  9. How can you make the project cheaper?
  10. How can you ensure that you make money on each step (if you are a supplier) or keep the budget under control (if you are a client)?
  11. What would be a typical budget for this sort of project?
  12. Which parts of this process are omitted by clients who choose to use systems such as OScommerce, Actinic Catalog and Amazon Marketplace?
How accurate is this budget?

The following is a fictitious budget open for full discussion but assumes integration with moderately complex back-office systems, strong branding guidelines and the need for an excellent customer experience. No software, database or other licensing costs are included and ongoing costs have only been estimated for the first 2-3 months.

The budget is shown in person days.

Project planning including creative, technical, integration, budgeting, testing and promotion

4

Setting and agreement of project goals and constraints

1

Assembling and briefing the project team

1

Brainstorming creative ideas

3

Competitor and market analysis

3

Analysis of business logic (selling, fulfilment, returns)

4

Wireframing/diagramming of processes and functionality

2

Agreement of functionality, specifications and plan within budget

2

Selection of platform, tools and hosting environment

1

Graphical design (within brand guidelines)

10

Conversion of design into templates and style sheets

5

Product modelling and database design

2

Promotion design and logic

2

Design of decision support tools to help shoppers select, choose and experience

2

Writing of all text pages (Terms & Conditions, Privacy)

4

Design and implementation of CRM integration

5

Design of customer service processes and systems

5

Design of testing regime and tools

3

Implementation within shopping software, CMS or from scratch

15

Integration with stock and ordering systems

10

Integration with payment partner

5

Photography

5

Collection and manipulation of content

10

Testing of business logic

3

Testing with users

3

Testing for DDA compliance

3

Cross browser and platform testing

3

Delivery and training (editorial and CMS)

2

Promotions and shop management

3

Design of reputation strategy

1

Implementation of reputation strategy

5

Design of PPC campaigns

1

Implementation of PPC campaigns

5

Integration of analytics and monitoring software

1

Monitoring of SERPS and PPC

2

Support and management of problems and issues

4

Changes in requirements following feedback and experience

5

TOTAL person days

145

Recent comments:

On December 8, 2005 at 11:01 PM, Onno wrote:

There is an API now for AdWords, there are some pretty neat stuff that can be done using it.

On December 9, 2005 at 12:30 PM, Mitul wrote:

Hi Jonathan,

I have a few questions re: the legalities of building a site

1: If the site does not comply with the Disability Discriminations Act, who is liable? (you or the client)

2: Any information on the site, which is offensive... i.e. Images used are copied from another site... who is liabile?

Jonathan replies: Liability in most things comes down to who has the most money and the best lawyers. I'm not sure that there has been a test case yet on the DDA but there are lots of publicity (to encourage compliance).

The same is really true of copyright and offense. Big companies like Disney are more likely to take you to court than the owners of small blogs.

On January 6, 2006 at 4:15 PM, Ben wrote:

I assume both questions from the case study 'Top level implementation plan' and 'Estimates for cost' both fall under this lecture! Is it possible to cover both questions by displaying a clear table to show 'hours, fixed costs, total costs and descriptions'?

Jonathan replies: That is certainly a good way to display the information inside your report. You may need to extract information and present it in a different way in the exam itself.

What do you think?







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