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CSIT 72 Electronic Commerce Technologies

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Title: CSIT 72 Electronic Commerce Technologies


1
CSIT 72Electronic Commerce Technologies
  • Lecture 1 - Introduction to Electronic Commerce
  • (Adapted from Dr. Ahmad Kayed, Monash University)

2
Electronic Commerce Introduction
  • What is Electronic Commerce?
  • Why Electronic commerce?
  • The Internet and Electronic Commerce.
  • Electronic Commerce Technologies Why how?

3
Electronic Commerce
  • Electronic commerce describes the use of
    electronic means to pursue business objectives.
  • It relies on a wide range of modern technologies,
    such as the World Wide Web, telecommunications,
    database technologies,agent technologies business
    intelligence, multimedia and user interfaces.

4
Electronic Commerce
  • Electronic commerce includes the ability to
    order, track inventory, and invoice
    automatically the capability of designing,
    testing and delivering products designed with
    input from multiple partners and the opportunity
    to reduce cycle times, to operate in asynchronous
    geographic locations and time periods.
  • However, it goes beyond the traditional business
    models by introducing a new class of (digital)
    products and services and electronic delivery of
    information goods.

5
Electronic Commerce Technologies
  • Electronic Commerce

Technology
Business
6
What is Electronic Commerce?
7
Electronic Commerce is
  • " The process of conducting all forms of business
    activity between entities using appropriate
    electronic methodologies and procedures in order
    to achieve theorganisation's objectives"
  • Electronic Commerce Australia

8
Electronic Commerce is....
  • Doing business in a paperless fashion.For
    example
  • Use of Email (Electronic mail)
  • Paying bills by telephone
  • Computer to computer transactions(EFTPOS, EDI
    etc.)
  • Use of the Internet for business
  • Replacement of cash with smart cardsand
    electronic money

9
Electronic commerce is
  • a modern business methodology that addresses the
    needs of organizations, merchants, and consumers
    to cut costs while improving the quality of goods
    and services and increasing the speed of
    services.
  • EC covers any form of computerized buying and
    selling, both by customers and from company to
    company.
  • EC is associated with the buying and selling of
    information, products, and services via computer
    networks.

10
Key aspects of EC
  • Networks -Internet, Value added Network (VAN),
    any other network. For this reason many
    researchers differentiate between e-commerce and
    Internet-commerce.
  • Interactions or/and transactions - buying,
    selling, ordering, querying, etc.
  • Parties sellers, suppliers, retailers, buyers,
    mediators, brokers, individual, commercial
    objects, administration objects (governments),
    etc.
  • Interactions are done electronically and parties
    are communicating electronically.

11
Electronic Commerce is...
12
Electronic Commerce
  • UsingEmail, E-forms, EDI, Facsimile,
    Interactivevoice systems, Touch phone
    technology,Multimedia, Smart Cards, Bar
    codescanners, etc.
  • Via
  • The Internet (or its equivalent) and WWW
  • Value added networks, Private networks,Microwave,
    Cable TV, etc., etc.

13
Electronic Commerce
  • Why Transact Business Electronically?
  • Efficiency gains transactions can be processed
    quicker
  • Time exchange of information more timely
  • Accuracy errors from re-keying data eliminated
  • Productivity human resources can be
    re-allocated
  • Control manual controls over risks can be
    replacedwith more effective automated
    systemcontrols

14
Electronic Commerce
  • Electronic Commerce
  • Not
  • "whether
  • but
  • "when" and "how"

15
Electronic Commerce
16
Electronic Commerce Technologies Why and How?
  • Web information to support e-commerce activities.
  • New e-commerce tools and technologies.
  • New Web data models and query languages.
  • Web site management system.
  • Auction and negotiation issues.
  • The management of Web data
  • The advent of XML and other standards.

17
Technology of Internet Business
Some slides have taken from Technology of
Internet Business by Elaine Lawrence
18
History of eCommerce
  • Many terms electronic commerce (e-commerce),
    eCommerce, iCommerce, Internet commerce,
    e-business and digital commerce
  • M-commerce is business carried out on mobile
    phones and personal digital assistants (PDA) such
    as palm pilots

19
Internet
Internet
Firewall
Intranet
20
National Science Foundation
  • Internet established in 1960 in the US for
    non-profit organizations
  • Mid 1980s the NSF created high speed long
    distance telecommunications network into which
    other networks could be linked
  • By 1991 the NSF had dropped its restrictive usage
    policy

21
World Wide Web
  • Arrival of WWW caused the business community to
    take notice
  • Web is a graphical hypertext environment that
    operates within the Internet
  • The protocol that underpins the Web is Hypertext
    Transfer Protocol (HTTP)
  • E-businesses use Secure Hypertext Transfer
    protocol

22
Multi-Tier
Internal Corporate Network
ERP Mainframes
Legacy Systems
Database Servers
Secured Neutral Zone
Application Servers
Static Pages Dynamic Pages
Web Servers
Internet
Routers Load balancers Firewalls
Network
Internet
Browser Helper Applications
End User
Clients
PriceWaterhouse Coopers
23
Multi-Tier
  • Client (Browser, PDA, another server, Web TV)
  • Presentation to the user
  • Formatting (application of stylesheet, rendering
    of HTML)
  • User interface
  • Helper applications eg PDF, multimedia
  • Web server
  • Creation of the HTML, XML etc (ASP, JSP, PHP)
  • Single point of reference for the client
  • Formatting (creation of HTML)
  • Application Server
  • Business logic programs (COM, EJB)
  • Single point of reference for application logic
  • Database server
  • Data storage
  • Legacy and Corporate systems
  • ERP, MIS

PWC
24
New Technologies
  • Since the development of WWW, many new
    technologies and software applications have been
    released
  • These technologies include
  • Credit card processing
  • Interactive advertising
  • Image transmission
  • Audio and video streaming

25
The Advent of Electronic Commerce
  • Electronic Funds Transfer (EFT), Personal
    Computer (PC) banking and Automated Clearing
    House (ACH) are early versions of e-commerce
  • EFT utilizes computer and telecommunication
    components both to supply and to transfer money
    or financial assets

26
Overview of EDI
  • EDI is very expensive so it is mainly used by
    large companies
  • A clearing house collects the various EDI payment
    authorizations from customers and settles
    accounts once a day
  • Internet EDI integrates existing systems with
    up-to-date e-commerce packages

27
The Digital Economy
  • Entire Internet is accessible to users and is
    unrestricted
  • Businesses can be established on the Internet
    very quickly
  • Many Internet based businesses have been
    developed as overlays reducing start up costs
  • Early 2000 many dot.com companies collapsed

28
M-Commerce
  • m-commerce or w-commerce are terms for mobile or
    wireless e-commerce
  • WAP is emerging technology that is common in
    Europe mobile devices have web-ready
    micro-browsers
  • WAP is a set of communication protocols to
    standardize the way that wireless devices can be
    used for Internet access

29
M-Commerce
  • Smart phones, using bluetooth technologies, offer
    fax, email and phone
  • Bluetooth is a computing and telecommunications
    industry specification describing how devices
    interconnect using a short range wireless
    connection

30
M-Commerce
  • These areas utilize m-commerce
  • Financial services customers can use hand held
    devices to access accounts, pay bills
  • Telecommunications service changes, bill
    payments and account reviews can be conducted
    from a hand held device
  • 50 percent of Portuguese use ATM bill payment
    facilities to reload their mobile credit

31
M-Commerce
  • Service Retail allows customers to pay for
    services on the fly
  • Pilot schemes in Scandinavia allow for consumers
    to use their mobile phones to pay for unattended
    car parking, soft drinks in vending machines
  • Information Services delivery of financial news,
    sports figures and traffic updates to a mobile
    device

32
Types of Electronic Commerce
  • There are nine segments to e-commerce
  • B2C business to consumer
  • B2B Business to business
  • B2G Business to government
  • C2B consumer to business
  • C2C Consumer to consumer
  • C2G consumer to government
  • G2B government to business
  • G2G government to government
  • G2C government to consumer

33
Types of Electronic Commerce
  • B2B exchanges are considering shifting to peer to
    peer networks (P2P)
  • This allows participants to exchange information
    directly bypassing central exchanges
  • The basic technology for this paradigm shift is
    already available as seen in Gnutella
  • http//gnutella.wego.com/

34
Business to Consumer B2C
  • Growth of this sector is extremely fast as seen
    by sites such as Schwab, eTrade, Amazon
  • http//www.etrade.com.au
  • If it reaches critical mass, real world traders
    could experience problems
  • Online businesses are also under threat when
    there is an oversupply

35
Business to Business B2B
  • Businesses are using the Internet to hook up with
    suppliers distributors resellers consultants
    and contractors
  • These collaborative networks are called extranets

36
Consumer to Business C2B
  • www.priceline.com epitomizes this type of
    business
  • Developed the reverse auction model where bidders
    set their price for items and a seller decides
    whether to supply them

37
Consumer to Consumer C2C
  • Usually in the form of online auctions consumers
    trade with each other using sites such as eBay
  • http//www.ebay.com
  • http//www.ubid.com
  • http//www.safetytechnology.com/auctions.htm

38
Government to Government G2G
  • Particularly important in Australia using the
    Internet to communicate between federal and state
    governments
  • Australia has an office for government Online OGO
  • http//www.ogo.gov.au/

39
Government to Business and Government to Consumer
G2B and G2C
  • During the transition to the GST in July 2000 the
    Australian Taxation Office relied heavily on the
    Internet
  • http//www.ato.gov.au
  • Businesses were able to apply for their ABN over
    the web
  • Speeding tickets and traffic fines may be paid
    over the Internet

40
Technology for the New Age of BusinessThe
Internet
  • It is a public, cooperative, and self sustaining
    facility used by hundreds of millions of people
    worldwide
  • Uses a portion of the total resources of the
    currently existing public telecommunications
    network
  • What distinguishes the Internet is its use of a
    set of protocols called TCP/IP

41
Intranets
  • Privately developed networks that operate within
    organizations
  • Intranets operate as separate networks within the
    operations of the Internet

Intranet
42
Extranets
  • Links businesses to their suppliers using
    Internet technology
  • These networks are not always in the public
    domain
  • One example is SITA supporting booking systems of
    most airline companies

43
Extranet VPN
Internet
Firewall
Intranet
VPN
Extranet
44
Extranets
  • Wide Area Networks (WANs) can span a large
    geographical area
  • Nodes on the network may communicate via
    telephone wires or satellites
  • Local Area Networks are normally restricted to
    one geographic region or department such as a
    university department

45
Extranets
  • Groupware is software shared on extranets such as
    Lotus Notes and Microsoft Exchange
  • http//www.microsoft.com
  • Attention must be paid to appropriate security
    measures

46
Ultranets
  • This will exist once Internet tools mature into
    next phase
  • Building blocks for the Ultranet include
  • Java
  • Internet protocol version 6
  • Secure electronic transactions (SET)
  • Object orientated database management systems
    (OODBMS)
  • Extensible Markup Language (XML)

47
Hypertext Transport Protocol
  • HTTP is the most basic protocol by which HTML
    resources are fetched across network connections
  • Hypertext is software technology that allows for
    fast and flexible access to information

48
Transmission Control Protocol/Internet Protocol
  • TCP/IP is the set of communication protocols used
    by the Internet to connect dissimilar systems and
    control the flow of information
  • IP is a packet forwarding protocol that splits up
    packets automatically to send large messages
    across the networks, then reassembles them at
    destination

49
Bluetooth
  • Jini Initiative enables desktop computers, PDAs
    and mobile phones to collaborate
  • Bluetooth Wireless Personal Area Networking
    (WPAN) creates a bubble of wireless connectivity
    for personal electronic devices

50
Uniform Resource Locators
  • This is the unique address of a web page
  • Each URL defines
  • Internet protocol being used
  • The server on which the web site is stored
  • The path that will transmit the document
  • Internet uses a IP address to send data to a
    specific destination computer

51
Browsers
  • Web browsers are software packages enabling users
    to access sites
  • Technically a client program using HTTP to make
    requests of web servers throughout the Internet
    for the user
  • Netscape Navigator and Internet Explorer are
    highly competitive browsers
  • Opera new browser

52
Client/server Architecture
  • Refers to a pair of machines or a pair of role
    designations
  • A client requests services and a server provides
    them.

53
JAVA
  • The programming language used as a software
    development tool designed for use in a
    distributed environment
  • JAVA applets are small programs written in JAVA
    that are downloaded onto client machines where
    they execute

54
Search Engines
  • Assist the user in finding web pages
  • An alternative is exploring a structured
    directory
  • Resource Definition Format (RDF) is a highly
    flexible way of indexing collections of resources

55
EDI
  • EDI protocol allows
  • One way or simplex mode of data transmission
  • Two way or duplex mode
  • In most instances, transmission occurs in one
    direction or half duplex mode

56
How the Internet Works
  • Most basic protocol is TCP/IP
  • Other protocols used on the Internet
  • Point-to-point protocol (PPP)
  • Serial Line Internet Protocol (SLIP)
  • Post Office Protocol (POP)
  • The development of these types of protocol has
    enabled more complex operations on the web

57
How the Internet Works
  • Development of the WWW
  • Web allows the user to interchange between
    documents using hypertext
  • This allows the Internet to establish a link to
    another document using a hotlink or hyperlink
  • The protocol that enables these hotlinks is the
    Hypertext Transfer Protocol (HTTP)

58
SGML
  • In the 1980s the International Organization for
    Standardization release a standard generalized
    markup language (SGML)
  • Defines documents in plain text using tags
    embedded in the text to specify the definition

59
HTML HTTP
  • HTML is a form of SGML with a specified
    document-type definition
  • HTTP is a multimedia transport protocol
  • It does not process the packages of data it
    transmits, it allows users to search for data
  • It allows databases to interact and information
    to be manipulated

60
The Web
  • What defines the web and differentiates it from
    other networks
  • HTTP
  • The ability of servers to support it
  • The transmission of data within these pages
    relies on the simplicity and speed of HTTP

61
Other Protocols
  • In addition to the TCP/IP and HTTP protocols the
    Internet uses
  • FTP file transfer protocol
  • SMTP simple mail transfer protocol
  • MIME Multipurpose Internet Mail Extensions

62
Architecture of the WWW
  • The Web is based on three-part architecture.
  • HTML describes the contents of web pages on the
    Internet
  • HTTP allows servers and browsers to communicate
  • A Common Gateway Interface CGI used by a web
    server to run a separate program that contains
    dynamic information, format it to HTML and send
    it on to the web server

63
ISPs
  • There are many levels involved on the Internet
  • Individuals can connect directly and via an
    intranet to an ISP
  • ISP is connected to an Internet access provider
  • This is connected to a National Access Provider
  • This is connected to a very-high-speed backbone
    (or spine) network service (VBNS)

64
EMail
  • Most popular Internet application
  • Allows the transmission of messages and files
    over a computer network
  • IMAP Interactive Mail Access Protocol
  • Allows user to view subject and sender, as well
    as attachments before they download
  • An email address consists of a user name and a
    domain name

65
Information Systems and Internet Commerce
  • The connection can be explained by the following
    definitions
  • IS (information system) is the collection of
    technical and human resources that provide
    storage, computing, distribution and
    communication
  • IS (information services) is a name for an
    organization within an enterprise that is
    responsible for its data processing and
    information system or systems

66
Methodologies
  • Managing the change to electronic business models
    requires many information technology
    methodologies to be invoked
  • Rapid Application Development (RAD)
  • Joint Application Development (JAD)

67
eCommerce as a Management Tool
  • Unfortunately many managers are not technically
    literate
  • Organizations need to develop strategies that
    enable them to cope with rapid change and the
    accelerating nature of information flows
  • Internal bureaucracies are the natural enemies of
    electronic commerce they may stifle competition

68
Summary
  • Electronic business is experiencing phenomenal
    growth since its appearance
  • Arrival of the Internet and WWW have made
    business available globally which emphasizes the
    need for business to keep ahead
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