Rob Oshana Southern Methodist University

1. E-Commerce: Architectures and Technologies Rob Oshana Southern Methodist University

2. Who am I ? • Robert Oshana • Adjunct Professor at SMU, School of Engineering and Applied Science, Graduate Software Engineering Program • Engineering Manager, Texas Instruments

3. Syllabus

4. Syllabus • Web page: • http://www.seas.smu.edu/eets/8392 • Times • 0900 - 1200 • Location • SMU Main campus • Instructor • Rob Oshana

5. Syllabus • Office hours; after/before class or by appointment • Phone • 214-415-9690 or 281-274-3211 • Internet • oshana@airmail.net • Book: “Scaling for E-Business”, by Daniel A. Menasce and Virgilio A.F. Almeida, Prentice Hall, ISBN 0-13-086328-9

6. 08/26/00 Introduction What is internet commerce? E-Commerce technologies Strategic Issues Case Studies 09/02/00 Internet technologies and infrastructure Business to Business Business to Consumer Models for E-Business Course Outline

7. Course Outline • 09/09/00 • System Design Issues • Network protocols • Intranets/Extranets • Client/Server • Design Principles • 09/16/00 • Customer Behavior Models • CBMG • CVM • Anatomy of E-Business functions

8. Course Outline • 09/23/00 • Infrastructure for Electronic Business • Quantitative analysis of authentication services and payment systems • 09/30/00 • Capacity planning for E-Business • Performance modeling concepts

9. Course Outline • 10/07/00 • Performance models for E-Business sites • Modeling contention for software servers • 10/14/00 • Midterm Exam

10. Course Outline • 10/21/00 • Characterizing E-Business workloads • Preparing for E-Business waves of demand • 10/28/00 • E-Commerce Technologies • HTML • DHTML • Images, links, and URLs

11. 11/04/00 E-Commerce Technologies XML Cookies CGI personalization 11/11/00 E-Commerce Technologies Java Applets Java Platform Java Security Course Outline

12. 11/18/00 E-Commerce Technologies JINI Technology Building Blocks Enterprise Java Beans Active X 11/25/00 Thanksgiving Vacation Course Outline

13. 12/02/00 E-Commerce tools and building blocks 12/09/00 Final Exam Course Outline

14. Student Evaluation • The course grade will be computed as follows: • Midterm Exam 40% • Final Exam 40% • Homework/Project 20%

15. Questions so far?

16. The World of E-Commerce

17. Internet Economy We Are Moving Towards a Worldof a BillionConnectedComputersand a Trillion Connected Dollars

18. Business processes automated among networked computers Once in a generation change in the way business is transacted mechanical support for intellectual and human-centered activities of business strategy marketing customer relations Services Education Industry Government Home E-Business

19. Sales transactions completed on the Internet (agreement and payment) Business to Consumer (B2C) personal payment, personal information, trust Business to Business (B2B) processes, documents, ongoing relationships Marketplaces (exchanges, etc) many B and C meeting together to do business E-Commerce

20. Phases of Public Excitement • B2C • Portals • B2B • e-Marketplaces • e-Business • Pervasive e-commerce • Service-oriented Commerce

21. Phases of Public Excitement - Challenges • B2C; storefront, images, payment, auction, authentication, privacy • Portals; content, collaboration • B2B; protocols, processes, robustness • e-Marketplaces; negotiation, services, databases

22. Phases of Public Excitement - Challenges • e-Business; business processes, models, stability, inter-organizational federated computing • Pervasive e-commerce; scale, user experience, application and content adaptation • Service-oriented Commerce; highly distributed computing, management

23. Fundamental Business Problem Make it known to potential buyers Something to sell Accept payment Deliver the goods or services Provide appropriate service

24. Why the internet and why now? • The top line • ability to reach new customers • create more intimate relationship with all customers • every business has a global presence • computing and information technology allows us to know more about our customers • use it to improve relationships and create sales

25. Why the internet and why now? • The bottom line • drastic cost reductions for distribution and customer service • internet lowers distribution costs for information • improves ability to keep information current • customers demanding more and more information about products and services • information may be the product

26. Key properties of the internet • Internet is interoperable • a computer is connected to the Internet if it can communicate with any other computer connected to the Internet • standardized protocols • universal naming, addressing, routing • no prearranged agreements

27. Key properties of the internet • The Internet is global • based on universal connectivity • used to distribute software • worldwide base of users with a common set of software • broad base of potential users

28. Key properties of the internet • The Web makes it easy • highly functional multimedia content easily available to users worldwide • connection possible for people with little or no computer experience

29. Key properties of the internet • Costs of network shared across multiple applications and borne by end users • most businesses and consumers connected to Internet pay for their own connection • network then free to use for various purposes

30. Key properties of the internet • provider of information does not need to pay for a distribution system • users of service pay for distribution • cost amortized by many applications and many users

31. Access to a global market • Internet accelerating globalization • worldwide high-bandwidth communications • cost is the same whether next door or around the world • everybody on the internet has a global presence

32. Access to a global market • still must deal with international issues • payment • currency • shipping • national,regional, local regulations

33. Dramatic Reduction in Distribution Costs • Printed brochures can cost several dollars for each recipient • “Brochureware” on web site is basically free (small one time setup charge) • up to the minute • more for less • accurate • searchable

34. “Digital” goods • Selling information or software in-line • delivered over the net cheaply and efficiently • no expensive packaging • boxed • CD-ROMs • packing material • cost is the same for customers everywhere

35. Strategic Issues • Concentration vs Empowerment • great concentration of suppliers? • thousands of small and medium sized suppliers in global niche markets? • probably both • few large music supersites • market serving critical mass for antique buggy whips

36. Strategic Issues • New competitive challenges • not necessary to create an expensive distribution channel to enter a new territory • formerly disjoint enterprises in direct competition now • selling financial instruments • done by banks and brokerages • publishers provided comparitive information • internet blurs these lines • is publisher in the trading business or is brokerage now a publisher? • who owns the customer relationship?

37. What is “Internet Commerce”? • “The use of the global Internet for purchase and sales of goods and services, including service and support after the sale” • “Electronic commerce” is more general • longer history (behind the scenes) • includes the use of computing and communication technology in financial business, on-line reservation systems, order processing, inventory management, etc

38. What is “Internet Commerce”? • Electronic Data Interchange (EDI) • umbrella term for many different types of activities • specialized for a perticular trading relationship • often a long process • message types • data formats • EDI and the Internet do not exclude one another • EDI specifies types of messages • Internet is a way of moving data

39. What is “Internet Commerce”? • Internet commerce transcends many of the restrictions of EDI • communication over shared public network rather then building a specialized network • spontaneous business transactions with no prior relationship • once a relationship develops, EDI (or another method) can be used to work more effectively

40. Business Issues in Internet Commerce • Must have a clear idea of business goals • technology cannot help you achieve those • goals can change to take advantage of technology • Internet may allow a company to achieve those goals in way that would have been too expensive or difficult to achieve without it

41. Questions businesses must ask of any new idea • How does it fit with our strategy? Should our strategy change? • What does it mean to our competitive situation? • Do we expect return in the short term, or is this a long-term investment? • How much will it cost? What do we expect to accomplish?

42. Questions businesses must ask of any new idea • How will we measure the success? • How does this affect our sales channels, our partners, our suppliers? Internet should not be exempted from such thinking!!

43. Investment can vary • Cost of getting started may be low • big difference between a few static web pages and real-time catalog updating, customer profiling, etc • Getting a web site up and running as soon as possible vs planning for growth and evolution • Don’t wait until you build the perfect system • takes too long and technology changes too fast

44. Technology Issues in Internet Commerce • 1. How to apply Internet technology to business problems • Web • databases • high-speed networking • cryptographic algorithms • multimedia

45. Technology Issues in Internet Commerce • putting all these technologies together can be challenging • toolkits and packaged application software now available to help

46. Technology Issues in Internet Commerce • 2. Pace of change • fact of life on the internet • no end in sight • successful sights must be able to incorporate new technologies quickly • coherent system architecture • focus on the ends and the fundamental principles • packaged software helps by amortizing cost over many customers

47. Who owns internet commerce in an Organization? • Sales and marketing? • MIS group? • Accounts receivable group? • Answer is critical to success • Confusion results when more than one group thinks it is responsible • duplicate efforts and investments

48. Who owns internet commerce in an Organization? • A combined effort • strengths of many groups required • sales and marketing; effective presentation of products/services on the Net • MIS; operating/outsourcing 24/7 commerce systems • etc

49. Buyer/Seller Transactions Information flow Seller Buyer • Digital data and • documents • Multimedia content • Software programs • Products/services • Digital Products • Services • Information Online transactions Payment flow

50. Product type Transactions Producers Consumer • Digital data and • documents • Multimedia content • Collateral • information • Customer • participation • Digital Products • Services • Processed orders Online production process