Databases in Electronic Commerce

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Chapter 13

• Databases in Electronic Commerce
• Database Systems Design, Implementation, and
  Management, Sixth Edition, Rob and Coronel

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In this chapter, you will learn

• What electronic commerce (e-commerce) is
• About the effect of e-commerce and its benefits
  and disadvantages
• About the different electronic commerce styles
• About the Internet architectural components
  required to conduct electronic commerce

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In this chapter, you will learn (continued)

• About database design and implementation issues
  for electronic commerce applications
• What Extensible Markup Language (XML) is and why
  it is important

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Orbitz E-Commerce Web Site
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What is Electronic Commerce?

• Use of electronic networked computer-based
  technology to
• Bring new products, services, or ideas to market
• Support and enhance business operations
  (including sales of products/services over the
  Web)
• Most e-commerce transactions take place among
  businesses
• Now recognized as a prime revenue source

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The Road to Electronic Commerce

• Key to e-commerce is using computer networks,
  especially the Internet, to automate and
  streamline business transactions
• 1960s banks created private telephone network to
  do electronic funds transfers
• 1970s banks created services to provide
  afterhours services to their customers
• Late 1970s and early 1980s Electronic Data
  Interchange (EDI) emerged
• Communications protocol that enabled companies to
  exchange business documents over private phone
  networks

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The Road to Electronic Commerce (continued)

• Early 1980s and through the 1990s personal
  computer facilitated rapid expansion of the
  Internet and ultimately provided the spark that
  led to the explosive use of the World Wide Web
• Late 1990s and early 2000s networking
  technologies blossomed and expanded the reach,
  speed, and in some cases, security of
  Internet-based communications and transactions

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Amazon.com Home Page
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The Impact of E-commerce

• Majority of businesses have a presence on the Web
• Global market has attracted millions of
  businesses and organizations to the Internet and
  e-commerce
• E-commerce enables businesses to provide services
  to customers, partners, employees, and the
  general public
• Internet is driving the development of a new
  generation of information systems

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E-Commerce Benefits

• Easy comparison shopping
• Reduced costs and increased competition
• Convenience
• 24 7 365 operation
• Global access
• Lower entry barriers
• Increased market (customer) knowledge

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E-Commerce Disadvantages

• Hidden costs
• Vulnerability to technical failure
• Cost of staying in business
• Lack of security
• Invasion of privacy
• Low service levels
• Legal issues

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E-commerce Styles

• Transactions can be grouped according to the
  sellers and buyers
• Business to business (B2B)
• Electronic commerce between businesses
• Business to consumer (B2C)
• Electronic commerce between business and
  consumers
• Intra-business
• Internal electronic commerce activities, most of
  which involve interactions between employers and
  employees

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E-Commerce Styles
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E-Commerce Automation of Supply Chain
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Covisint.com Automotive B2B Marketplace
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Sample B2C Web Sites
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E-commerce Architecture

• Deployment of a well-planned architecture is
  necessary to support e-commerce business
  transactions, both internal and external
• E-commerce architecture can be divided into a
  series of layers
• Basic Internet services
• Business-enabling services
• E-commerce business services

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E-Commerce Architecture
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Internet Building Blocks and Basic Services
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Internet Building Blocks and Basic Services
(continued)
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Basic Internet Services
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Business-Enabling Services
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Business-Enabling Services (continued)
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Security

• Encompasses all the activities related to
  protecting data and other e-commerce components
  against accidental or intentional (usually
  illegal) access or use by unauthorized users
• Privacy
• Deals with the rights of individuals and
  organizations to determine the who, what, when,
  where, and how of data use

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Security (continued)

• Security (procedures and technology) must be
  maintained to
• Authenticate identity of transaction participants
  
• Protect transaction data from unauthorized
  modifications
• Protect resources (data and computers)

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A Sample E-Commerce Transaction

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Registering with a Certification Authority
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Web Browser Security Settings
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Web Browser Secure Session
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Web Browser Proxy Settings
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Web Payment Processing

• Key function of e-commerce Web sites is their
  ability to process online payments for products
  and/or services
• Digital cash
• Digital equivalent of hard currency
• Online credit card processing
• Electronic wallets
• Equivalent of a physical walletcan contain
  credit card information, digital cash, and other
  personal information such as shipping addresses,
  phone numbers, and e-mail addresses

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Setting Up a Microsoft Electronic Wallet
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Database Design for E-commerce Applications

• Define scope of database
• Establish some basic business rules and their
  effect(s) on the design
• Define tables required to support the e-commerce
  activities
• Identify basic attributes for each table

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Main Tables for E-Commerce Database
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CUSTOMER Table
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CUSTOMER Table (Continued)
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PRODUCT Table
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PRODUCT Table (Continued)
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PRODTYPE Table
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ORDER Table
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ORDER Table (Continued)
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ORDLINE Table
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SHOPCART Table
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PMTTYPE Table
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SHIPTYPE Table
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TAXRATE Table
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STATE Table
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PROMOTION Table
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PRICEWATCH Table
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PRODPRICE Table
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Extensible Markup Language (XML)

• Meta-language used to represent and manipulate
  data elements
• Designed to facilitate the exchange of structured
  documents such as orders or invoices over the
  Internet
• World Wide Web Consortium published the first XML
  1.0 standard definition in 1998

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Contents of the ProductList.xml Document
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Contents of the ProductList.dtd Document
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Contents of the ProductListv2.xml Document
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DTD and XML Documents for Order Data
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The XML Schema Document for the Order Data
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Framework for XML Transformations
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Displaying XML Documents in MSIE 5.0
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XML Data Binding in MSIE 5.0
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Summary

• E-commerce is the use of electronic
  computer-based technology to
• bring new products, services, or ideas to market,
  and to
• support enhanced business operations
• E-commerce enables companies to market and sell
  products and/or services to a global market of
  millions of users

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Summary (continued)

• Adoption of e-commerce technologies enables
  companies to provide rapid responses to
  competitive pressures by enhancing internal
  operations and facilitating business transactions
• E-commerce can be classified as business to
  business (B2B), business to consumer (B2C), and
  intra-business

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Summary (continued)

• E-commerce architecture provides a framework that
  describes the technical components of e-commerce
  Web sites and their interactions
• Security and privacy of business transactions and
  data are crucial for the success of e-commerce
• Credit card processing and digital cash are the
  most common ways to process payments on the
  Internet

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Summary (continued)

• E-commerce databases contain normalized
  structures that are similar to typical
  operational databases
• Extensible Markup Language (XML) facilitates the
  exchange of B2B data over the Internet