E-Commerce

1. E-Commerce Dr.R.BASKARAN Senior Lecturer Department of Computer Science and Engineering, Anna University, Chennai – 600025. baaski@cs.annauniv.edu Dr.R.BASKARAN,DCSE

2. UNIT V Online Commerce Environment Dr.R.BASKARAN,DCSE

3. Electronic payments (e-payment) • E-payments: payments made electronically rather than by paper (cash, checks, vouchers, etc) • Electronic payments methods expedite payments online and reduces processing costs, but must it must be safe and trusted by users. • The major methods of e-payments in use includes, Dr.R.BASKARAN,DCSE

4. Electronic Payments Methods • Electronic payment cards (credit, debit, charge) • Virtual credit cards • E-wallets (or e-purses) • Smart cards • Electronic cash (several variations) • Wireless payments • Stored-valued cards payment • Loyalty cards • Person-to person payment cards • Payments made electronically at kiosk • Other methods used mostly for B2B payments • Electronic checks • Purchasing cards • Electronic letters of credit • Electronic funds transfer (ETF) • Electronic benefit transfer (EBT) • Etc • The underling similarity is the ability to transfer or make a payment from one person or party to another person or party over a network without face-to-face interaction. Dr.R.BASKARAN,DCSE

5. Electronic payments (e-payment) Electronic cards: are plastic cards that contain digitized information, that can be used for payment and for other purposes such as identification and access to secure locations. • Payment cards: electronic cards that contains information that can be used for payment purposes. there three types of payment cards • Credit cards: providers the holder with a credit to make purchases up to a limit fixed by the issuers. (users normally don’t pay any fee for using it, just a high interest on their unpaid balance) • Charge cards: are like monthly loans given to the user, that he/she is required to pay back in full at the end of the month or upon receipt of monthly statement. (usually no interest is paid on such cards, just an annual fee and or severe penalty for failure to pay balance in full) • Debit cards: with a card the money for a transact comes directly from the users account Dr.R.BASKARAN,DCSE

6. Electronic payments (e-payment) • Virtual credit cards: a payment system in which the issuer gives a special transaction number that can be used online in place of a regularly credit card number. • E-wallets: is a software component in which a user stores credit card numbers and other information; when shopping online, the user simply clicks the e-wallet to automatically fill in information needed to make a purchase. Dr.R.BASKARAN,DCSE

7. Electronic payments (e-payment) • Electronic cash: the digital equivalent of paper currency and coins, which enables secure and anonymous purchase of low-priced items. • E-cash has various variations; • Wireless payments • Stored-value cards • E-loyalty • P2P payment: e-payment schemes that allows the transfer of funds between two individuals • Payment made electronically at kiosk; customers acting as cashiers and checking themselves out. Dr.R.BASKARAN,DCSE

8. Electronic payments (e-payment) Smart Cards: an electronic card contains an embedded microchip that enables predefined operations or the addition, deletion, or manipulation of information on the card. Some applications of smart cards: Loyalty cards; retailers are using loyalty cards to identify their loyal customers and reward them Financial application; financial institutions, payment associations, credit cards, debit cards, charge card issuers are all using smart cards to extend the traditional card payment services Transportation Identification; smart cards fits perfectly in the identification market Dr.R.BASKARAN,DCSE

9. Smart Cards • Smart card – plastic card (the size of a credit card) that contains an embedded chip on which digital information can be stored and updated • Debit cards are an implementation Dr.R.BASKARAN,DCSE

10. Smart Cards • Stored-value cards • Can hold private user data, such as financial facts • Can store about 100 times more information than a magnetic strip plastic card • Safer than conventional credit cards Dr.R.BASKARAN,DCSE

11. Smart Card Reader • Device that plugs into your PC • Insert your card and go • All account information is stored on card • Authorize transactions with only a PIN number • No more long Billing and Shipping forms to fill out. • Upload options from your card to “smart Space” or download options and applications to the card through Merchants, Visa, or other locations. • Readers being built into hardware like keyboards and monitors. Dr.R.BASKARAN,DCSE

12. Compaq Smart Card Reader Dr.R.BASKARAN,DCSE

13. Ecommerce before Digital Cash • Transactions still based on paper money or credit cards • Couldn’t order products via the Internet • Phone in orders • Consumers could only visit the stores Web site, but still had to go to the store to order products. Dr.R.BASKARAN,DCSE

14. Minimum Requirements for Digital Cash • Atomicity • Transactions occur completely or not at all • Consistency • All parties must agree on critical factors of exchange • Isolation • Transactions should not overlap • Durability • If computer crashed money should still be there Dr.R.BASKARAN,DCSE

15. Additional Features • Secure – unable to alter or reproduce • Anonymous – untraceable • Portable – physical independence • Infinite Duration – until destroyed • Two-way – peer to peer transactions are possible • Off-line capable – availability • Divisible – change can be made • Wide acceptability – trust • User Friendly – simple • Unit-of-value freedom – non-political • (never happen) Dr.R.BASKARAN,DCSE

16. The Internet • International network of networks • Universal technology platform: Any computer can communicate with any other computer • World Wide Web and Web sites Dr.R.BASKARAN,DCSE

17. What You Can Do on the Internet? • Communicate and collaborate • Access information • Participate in discussions • Supply information • Find entertainment • Exchange business transactions Dr.R.BASKARAN,DCSE

18. Internet Strategies • Strategy Objectives • Promote the brand internationally • Support global, Field organization building • Enable efficient e-commerce Dr.R.BASKARAN,DCSE

19. Promote the Brand Internationally • About the company • – Brand message • – Region/country message • – Public information • About the opportunity • – Stories/testimonials • – How to get started • • About the products • – Categories/local specifics • – Science • – Marketing • – How to purchase or promote Dr.R.BASKARAN,DCSE

20. Support Field Organization Building • Lead generation/conversion • • Contact management • – Collect, organize and mine information • – Leverage web technologies • Training and communication • – Electronic documentation and presentation • – Leverage web technologies Dr.R.BASKARAN,DCSE

21. Enable Efficient E-Commerce • Cost and operational interaction • – Global reach • – Self-service • – Process integration • • Information for business management • – Personnel • – Product transactions • • Marketing • – To distributors • – To ultimate users Dr.R.BASKARAN,DCSE

22. What is e-commerce Software? • Front-end • For Visitors and Customers • Web-based by definition • Backend • For enterprise business managers • Merchandisers, Account Mangers, Customer Support, etc. • Middleware • To interface with existing systems • Customer, Inventory, Credit, Payment and Order Processing systems Dr.R.BASKARAN,DCSE

23. e-Commerce Front-end • Web Application Server • Functionality • Personalization and Profiling • Complex, Dynamic Content Presentation • Process Support • Shopping Process • Buying Process Dr.R.BASKARAN,DCSE

24. e-Commerce Backend • Content Management • Merchandizing • Catalog management • Price and on-line collateral management • Process Support • Customer Support • Anomaly management • Payment or Order processing hiccups Dr.R.BASKARAN,DCSE

25. e-Commerce Middleware • Payment Processing • Customer specific credit, purchase orders, etc. • Electronic payment including EDI and credit cards • Order Processing • Interface to proprietary, custom enterprise systems • e-enabled systems of large warehouses • e-Services that provide Order Distribution • Inventory Management • Soft and hard reserve functionality • Direct access to specific inventory Dr.R.BASKARAN,DCSE

26. Web Server Basics • Main job of a Web server computer is to respond to requests from Web client computers • Three main elements of a Web server • Hardware • Operating system software • Web server software Dr.R.BASKARAN,DCSE

27. Web Server Software • Most popular Web server programs • Apache HTTP Server • Microsoft Internet Information Server (IIS) • Sun Java System Web Server (JSWS) Dr.R.BASKARAN,DCSE

28. Microsoft Internet InformationServer • Comes bundled with current versions of Microsoft Windows Server operating systems • Used on many corporate intranets • Supports the use of • ASP • ActiveX Data Objects • SQL database queries Dr.R.BASKARAN,DCSE

29. Microsoft Commerce Server2002 • Allows businesses to sell products or services on the Web using the following tools • User profiling and management • Transaction processing • Product and service management • Target audience marketing • Provides many predefined reports for analyzing site activities and product sales data Dr.R.BASKARAN,DCSE

30. Electronic Data Interchange (EDI) “ The electronic interchange of formatted data between computer applications using agreed message standards” Preceded Web-based Electronic Commerce Is appropriate for the exchange of structured business documents orders, invoices, delivery notes Links suppliers, customers and banks Dr.R.BASKARAN,DCSE

31. EDI Supplier CRP, Purchase order, purchase order change, Retailer Purchase order acknowledgement, invoices Payment authorization Electronic Transfer of funds Retailer’s Bank Supplier’s Bank Dr.R.BASKARAN,DCSE