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Topic2E-COMMECETECHNOLOGY
FOUNDATIONS2LearningObjectiveslistandbrieflyoutlinethemaintechnologiesusedinthee-commercecontextDiscussenterprisesystemsbrieflytouchontechnologiesfore-commercesecurity(Topic11hasmoredetails)discussdevelopmentprocessofe-commercewebsites3GlobalGrid:everyoneandeverythingbecomesconnected?!Opportunities?!Challenges?!(seereading2.3)
4TheInternetofThings:AnEmergingBusinessTrend(seereading2.4)5E-commerceInfrastructure:IntroductionThereismoretoanECWebsitethanmeetstheeyeBehindthescenesofvirtuallyeverye-commercesite,anumberofhardwareandsoftwarecomponentsaresupportingtheseapplicationsresidingonnetworks.E-commerceinfrastructureincludes:hardware,softwareandnetworks.6E-commerceinfrastructureE-commerceisbuiltontopofanumberofdifferenttechnologiesNationalInformationInfrastructureElectronicCommerceApplicationsElectronicPublishingInfrastructureMessageDistributionInterfaceBusinessServicesInfrastructureInternetWebsitecatalogueHTMLHTTPEncryption(McKeown2000;Wastonetal.2001)7NationalInformationInfrastructureFormsthebaseofthee-commercemodelIncludessuchtechnologiesastelevision,publictelephonenetworks,Radionetworks,cable,cellularsystems,internet(WAN,LAN,VPN,Intranet,extranet),etc.Itiscriticalforgeneralcommunicationwithinacountry8TheInternetInternet:Ainterconnectednetworkofthousandsofnetworksandmillionsofcomputers,linkingbusinesses,educationalinstitutions,governmentagenciesandindividualsWorldWideWeb(Web):OneoftheInternet’smostpopularservices,providingaccesstoover6billionWebpages9PacketSwitchingAmethodofslicingdigitalmessagesintopackets,sendingthepacketsalongdifferentcommunicationpathsastheybecomeavailable,andthenreassemblingthepacketsoncetheyarriveattheirdestinationUsesrouters:specialpurposecomputersthatinterconnectthecomputernetworksthatmakeuptheInternetandroutepacketstotheirultimatedestinationandusecomputerprogramscalledroutingalgorithmstoensurepacketstakethebestavailablepathtowardtheirdestination10PacketSwitching:Example(Laudon&Traver2012)11RoutingInternetMessages:TCP/IPandPacketSwitching(Laudon&Traver2012)12TypesofProtocol(agreedrulesofhow
computerscommunicate)TCP(Transmissioncontrolprotocol):establishedtheconnectionsamongsendingandreceivingwebcomputers,handlestheassemblyofpacketsatthepointoftransmission,andtheirreassemblyatthereceivingendIP(Internetprotocol):providestheinternetaddressingschemeSMPT/POP:forsendingandretrievingemail HTTP:HypertexttransferprotocolFTP:Filetransferprotocol.EDI:Electronicdatainterchange.EDIallowscompaniestoautomaticallytransmitdocuments(esp,standarddocumentsrepetitively).ItismainlyforB-to-B.Itreduceshumaninvolvementthuscuttingdowntheoperatingcost.13(Turban06,reading2.1)14TheHourglassModeloftheInternet(Laudon&Traver2012)15WhattomoreaboutInternet?Seethearticle“Howinternetinfrastructureworks”at:/internet-infrastructure.htm/printable
Alsorefertoreading2.3ofGlobalGridandreading2.4ofTheInternetofThingsforemergingtrendsandinternetdevelopmentaroundtheworld.LimitationsofcurrentInternet
BandwidthlimitationsQualityofservicelimitationsLatency“Besteffort”QOSNetworkarchitecturelimitationsLanguagedevelopmentlimitationsHTMLWiredInternetlimitations1617TheInternet2?ProjectConsortiumof330memberinstitutionscollaboratingtofacilitaterevolutionaryInternettechnologiesPrimarygoals:Createleading-edgevery-highspeednetworkfornationalresearchcommunityEnablerevolutionaryInternetapplicationsDistributedandcollaborativecomputingenvironmentsforsciences,health,artsandhumanitiesinitiatives.FindMoreInformationonInternet2Projectat:.
18MessageDistributionInterfaceConsistsofsoftwareforsendingandreceivingmessagesItspurposeistodeliveramessageformaclienttoaserver,i.e.,EDI,E-mail,HTTPMessagescanbeformattedorunformatted19ElectronicPublishingInfrastructureWWWisagoodexampleofelectronicpublishinginfrastructure.Threekeyelementstotheweb;URLusedtoidentify/locateaserveruniquelyAnetworkprotocoltypicallyTCP/IPAstructuremark-uplanguageforpresentinginformation,egHTML,XML20BusinessServicesInfrastructureSupportscommonbusinessservicesSecuretransmissionofcreditcardnumbersandotherpaymentdataIncludesfacilitiesforencryptionandauthenticationSomeexamples:security,electronicpaymentsystems,Smartcards,etc21ElectronicCommerceApplicationsThisisthelayerwithwhichthecustomerinteracts!!TransactionstakesplaceatthislayerAllwebsitesthatparticipateine-commercehaveane-commerceapplication,i.e.,onlinecatalogue,onlinebanking,onlinetracking,etcTypicallyimplementedusingclient/serverarchitecture22MajorECApplicationsB2CStorefrontSupplierSell-sideB2BSitesE-procurementAggregatingcatalogsReverseauctionsandTenderingsystemsForwardauctionsExchangesPortals23(Turbanetal.2010)24(Turbanetal.2010)25(Turbanetal.2010)26CriteriaforSelectinga
DevelopmentApproachFlexibilityInformationrequirementsUserfriendlinessHardwareandsoftwareresourcesInstallationMaintenanceservicesVendorqualityandtrackrecord27CriteriaforSelectinga
DevelopmentApproach(cont.)EstimatingcostsPersonnelTechnologicalevolutionScaling Scalability:
Howbigasystemcangrowinvariousdimensionstoprovidemoreservice;measuredbytotalnumberofusers,numberofsimultaneoususers,ortransactionvolumeSizing28DevelopmentOptionsfor
ECApplicationsIn-housedevelopment:InsourcingBuytheapplications:TurnkeyapproachLeasingOutsourcingASPapproachesUtilityComputing29
Insourcing:In-housedevelopmentofapplications
Canbetime-consumingandcostlyMayleadtoECapplicationsthatbetterfitanorganization’sstrategyandvisionRequiresspecializedITresources30TurnkeyApproachTurnkeyapproachinvolves:BuyingacommercialpackageInstallingitStartingitupBuyingacommercialpackagerequiresmuchlesstimeandmoneythanin-housedevelopment31MajoradvantagesanddisadvantagesoftheturnkeyapproachAdvantagesManydifferenttypesofoff-the-shelfsoftwareareavailableItsavestimeandmoney(comparedtoin-housedevelopment)ItrequiresfewerpersonnelThecompanyknowswhatitisgettingbeforeitinvestsintheproductThecompanyisnotthefirstandonlyuserDisadvantagesSoftwaremaynotmeetthecompany’sneedsSoftwaremaybedifficultorimpossibletomodifyThecompanymayexperiencelossofcontroloverimprovementsandnewversionsOff-the-shelfapplicationscanbedifficulttointegratewithexistingsystemsVendorsmaydropaproductorgooutofbusiness32Leasing
LeasinganapplicationpackagecanresultinsubstantialcostandtimesavingsAdvantageousfor:Smalltomediumenterprises(SMEs)LargecompanywantstoexperimentwithapackageHowleasingcanbeaccomplishedLeasetheapplicationfromanoutsourcerandtheninstallitonthecompany’spremisesLeasetheapplicationfromanASPthathoststheapplicationatitsdatacenter33OutsourcingUseofoutsidecontractorsorexternalorganizationstoacquireECapplicationsOutsourcerscanperformanyorallthetasksinsystemsdevelopmentForSmallfirmswithsmallITstaffandsmallbudgetsForlargefirmswhentheywanttoexperimentnewECtechnologiestoavoidlargeup-frontinvestmentrequired&disruptiontointernalnetworksandtouseexpertsHaveadvantages(i.e.,costsaving,morestrategic&businessfocus,easiertransitiontonewtechnologies….)anddisadvantages(i.e.,lossofcontrol,highswitchingcost,security,reliability….).Offshoreoutsourcing(i.e.,toIndiaandChina)isrising,butbeawareoftherisksinvolved.34UseofApplicationServiceProvidersOnecommontypesofoutsourcingUserspayfortheuseofbusinessapplicationsthroughasubscription(i.e.,monthlyfee),licenseorperusebasis.Firms,especiallySMEs,willenjoythebenefitoflessneedforinternalISstaffandITinfrastructureinvestment.AlsoitiseasiertowalkawayfromunsatisfactorysystemssolutionsandisquickertorespondtomarketwithapplicationsavailablefromASP.Disadvantagesinclude:LesscontrolovertheapplicationsApplicationsfromASPtendtoaddressroutineproblemsthereisnotmuchattentioninhowaparticularproblemorganizationisfacingisaddressed(needcustomization)35Utility(on-demand)
ComputingUnlimitedcomputingpowerandstoragecapacitythatcanbeused,reallocatedandsharedforanyapplicationandbilledonapay-per-usebasis.Theideaistomakecomputingpowerintoanotherpay-as-you-goservice,likewaterorelectricity.Itshouldbeeconomicalandreliable.Formoreinformation,pleasevisit
/.
E-CommerceEnablers?????3637(Turbanetal.2008,p.512)GeneralSecurityIssuesatECSitesTwo-TierECArchitecture38(Laudon&Traver2012)Multi-TierECArchitecture39(Laudon&Traver2012)LogicalDesignforaSimpleWebSite40(Laudon&Traver2012)PhysicalDesignforaSimpleWebSite41(Laudon&Traver2012)FactorsInfluencingtheDemandonaSite42(Laudon&Traver2012)43(Laudon&Traver2012)CustomerandMerchantPerspectivesontheDifferentDimensionsofE-commerceSecuritySomeImportantFactorsofSuccessfulECWebsiteDesign44(Laudon&Traver2012)ECSiteFeaturesAnnoyingCustomers45(Laudon&Traver2012)46TechnologiestoAddressSecurityIssues:willhavemorec
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