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EC5001 Introduction to eCommerce Technology Overview

EC5001 Introduction to eCommerce Technology Overview. o e-commerce process o e-commerce technologies o computer networks and internet. Process of Commerce. Buyers find what they want, sellers advertise their goods and services Advertising, marketing Dealers, distributors, representatives

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EC5001 Introduction to eCommerce Technology Overview

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  1. EC5001 Introduction to eCommerce Technology Overview o e-commerce process o e-commerce technologies o computer networks and internet

  2. Process of Commerce • Buyers find what they want, sellers advertise their goods and services • Advertising, marketing • Dealers, distributors, representatives • Cutting best deal – Negotiation • Transaction • Contract (purchase order) • Transaction processing • Payment (fund transfer) • Order fulfillment • Inventory, Delivery EC5001 Sem A 2012/13

  3. Process of Commerce (cont’d) • Post-sales activities • Customer services and support • Inventory control • Accounting • Data Analysis • Who buy what? • Profitability • Trends • Discovered relationships EC5001 Sem A 2012/13

  4. The Electronic Supply Chain Plan Source Make Deliver Deliver Deliver Make Source Make Deliver Source Supplier Customer Customer’sCustomer Your Organization (internal or external) (internal or external) MS6721 Supply Chain Management EC5001 Sem A 2012/13

  5. EC5001 Introduction to eCommerce o e-commerce process o e-commerce technologies o computer networks and internet

  6. Requirements on Technologies • Ubiquitous reachability • Any process can communicate with any other process • Network, global Internet, mobile technologies • Applications and processing support • Machine and software • Database, search engine • Transaction processing EC5001 Sem A 2012/13

  7. Requirements on Technologies (cont’d) • Need for contents development and data interchange • Authoring tools • Multimedia tools • Document description languages (HTML, XML) and data interchange languages and protocols (EDI, XML, Web Services) • Protection and security requirements • Protecting data • Protecting transactions • Protecting intellectual property EC5001 Sem A 2012/13

  8. Applying Technologies What technologies can be applied to assist/enhance the process of commerce? • Buyers and sellers finding each other • Advertisement and marketing • Using the Web and e-mail • Electronic shop fronts, catalogues • Auction sites • Search engines • Social networking • Social bookmarking • Forums • Video sharing site • Main technologies: Web, Multimedia, Search engine, Database, intelligent agent EC5001 Sem A 2012/13

  9. Applying Technologies (cont’d) • Negotiation • Auction bidding • Using email • Using Intelligent agents • Transaction • Electronic shop fronts – order capture • Purchase order processing EC5001 Sem A 2012/13

  10. Applying Technologies (cont’d) • Payment • Credit cards/SSL (Visa 3D Secure, Mastercard SecureCode) • Electronic payment protocols (e.g., SET) • Digital cash • Electronic cheques • Electronic bill presentment and payment (EBPP) • Person-to-Person (P2P) Payment Service (e.g., PayPal, Google Checkout, Amazon Flexible Payments Service) • Order fulfillment • Delivery • Inventory and order tracking system • Supply chain management EC5001 Sem A 2012/13

  11. Applying Technologies (cont’d) • Post sales activities • Customer service (through Web, e-mail, or interactive agent like Conversagent), Customer Relationship Management (CRM) • Automatic inventory management • Accounting • Transaction processing • Interoperability (on-line system, legacy systems) • Data Analysis • Data Mining – Discovering trends and useful information for planning Data WarehousingData Mining Data Information Knowledge Management Knowledge EC5001 Sem A 2012/13

  12. Challenges • Access and transactions can be done anywhere (mobility), anytime • Linking everything together into a coherent system • Requires protocol standards, data interchange technologies EC5001 Sem A 2012/13

  13. THE ELECTRONIC ENTERPRISE SUPPLY CHAIN MANAGEMENT ENTERPRISE RESOURCE PLANNING CUSTOMER RELATIONSHIP MANAGEMENT SCM ERP CRM S2S Voice (IVR, ACD) Demand Planning Strategic Planning Industry- Specific Solutions Svc.Auto. Mfg. Exec. Collab. Planning Distrib. Planning MarketingAuto. Conf. Product Mgmt. Employee Systems Legacy Systems Order Mgmt. SalesAuto. Supply Planning WH Mgmt. E-Mail Mfg. Finance HR Logistics Collaborative CRM WebStorefront Collaborative SCM Mfg. Planning Mobile Sales (Prod. CFG) Portal/ Extranet Fact. HH Devices Employee SS Trans. Mgmt. Trans. Planning Web/ Intranet FieldService E-Mail EDI Operational Closed-Loop Processing (EAI Toolkits, ETLM Tools, Embedded Mobile Agents) Direct Interaction Conf. DW ACD = AUTOMATIC CALL DISTRIBUTOR CFG = CONFIGURATION DM = DATA MINING DW = DATA WAREHOUSE ETLM = EXTRACT, TRANSFORM, LOAD & MANAGE HH = HAND-HELD IVR = INTERACTIVE VOICE RESPONSE KM/CM Cust. DM Financ. DM HR DM Order DM Prod.DM Analytical Source: Meta Group EC5001 Sem A 2012/13

  14. Progress of Underlying Technologies EC5001 Sem A 2012/13

  15. Progress of Underlying Technologies (cont’d) EC5001 Sem A 2012/13

  16. Key eCommerce Technologies • Infrastructure • Networking technologies • Security technologies • Mobile technologies CS5222 Computer Networks & Internets, CS5285 Information Security for eCommerce EC5001 Sem A 2012/13

  17. Tools Client and server components Content development and Interchange (HTML, XML) Internet programming Multimedia Database Search engine Data mining Applications Payment protocols Auctioning Voting File sharing Intelligent agents Mass personalization etc. Key eCommerce Technologies (cont’d) EC5001 Sem A 2012/13

  18. Tools – Content Development • Content authoring • HTML, DHTML, XHTML • Document Presentation description/rendering • Content description • XML • Content language description: XML • Document structure description: DTD, XML Schema • Format description: XSL • Facilitate data interchange • Abstract data types • ISO ASN.1 • Encoding rules • ISO BER EC5001 Sem A 2012/13

  19. Tools – Content Development (cont’d) • Multimedia • Representation, transmission requirements • Text, graphics, speech, music, video, movies, virtual reality. • Formats: GIF, JPEG, MPEG, FLV, … • Tools to create multimedia contents • Capture, editing, display • Manipulation with web programming tools CS5185 Multimedia Technologies & Applications EC5001 Sem A 2012/13

  20. Tools (cont’d) • Internet Programming • Client-side programming • JavaScript, Java Applets, Adobe Flash/Flex, Microsoft SilverLight, rich Internet applications, etc. • Server-side programming • Perl/PHP/Python, Java EE, Ruby on Rails, ASP.Net, component technologies • Database • Connection, query languages CS5281 Internet Application Development EC5001 Sem A 2012/13

  21. Tools (cont’d) • Data Mining • Web navigation information • Server logs, cookies • Transaction records • Extracting “hidden” relationships from large datasets • Discovering patterns • Useful for predicting the future CS5483 Data Warehousing and Data Mining EC5001 Sem A 2012/13

  22. Tools (cont’d) • Search Engines • Query interface • Simplicity vs Descriptive power • Retrieval methods • Indexing, Document ranking • Document clustering • Multilingual issues • Multimedia retrieval • Discovering web pages • Registration, Crawlers and spiders CS5286 Algorithms and Techniques for Web Searching CS6280 Algorithms and Protocols for Internet Market EC5001 Sem A 2012/13

  23. EC5001 Introduction to eCommerce o e-commerce process o e-commerce technologies o computer networks and internet

  24. Computer Networks and Internet • Computer Networks • Local area networks • Limited geographic scope • Low per port cost • Operated by individual or organization • Wide area networks • Wide geographic scope • Public network shared by users and operated by carrier company EC5001 Sem A 2012/13

  25. Computer Networks and Internet (cont’d) • Local Area Network • Design Goals • Low per port cost • High link speed • Ease of maintenance • Proven Technologies • Ethernet (IEEE 802.3) • Predominant for “departmental” LAN • Token passing ring (IEEE 802.5) • Required for some real-time systems • Used in some organization backbone network (FDDI) • Wireless LAN (802.11a/b/g/n) • Next Generation of Wireless Networks (802.16, WiMAX) EC5001 Sem A 2012/13

  26. Network Structure • Ethernet • Initially invented at Xerox PARC for sharing printers and disks. • Access protocol : CSMA/CD • Limitation: • Traffic congestion at high traffic level • Non-deterministic access delay { shared bus topology } EC5001 Sem A 2012/13

  27. Network Structure (cont’d) { Physical topology: Star } hub • Maintenance ease • High speed: 100 Mpbs, 1000 Mbps • Limited distance: 100 m (Solution: join smaller LANs) • Switched Ethernet (logically star as well) • Hub becomes a switch (switching hub), no bus contention. • higher total throughput EC5001 Sem A 2012/13

  28. Network Structure (cont’d) • Token passing ring • Controlled transmission. • Can configure for access delay bound – suitable for real-time applications. • Often used in organization backbone (FDDI) networks. • Performance characteristics • No congestion, deterministic access delay EC5001 Sem A 2012/13

  29. Organization Network • Design paradigm • Build small departmental LANs • Connect them together with network connection devices (router or bridges) Router Router Router EC5001 Sem A 2012/13

  30. Organization Network (cont’d) • Switched network • ATM switching • IP switching • Current trend • Can have multiple levels switch Departmental LAN’s EC5001 Sem A 2012/13

  31. Global Internet Ideal: One network with global coverage accessible from anywhere. Reality: Many heterogeneous networks Solution: interconnect these networks together (with routers) EC5001 Sem A 2012/13

  32. Global Internet (cont’d) • Station connects to (organization’s) network • Networks connected together by routers Router Internet Router EC5001 Sem A 2012/13

  33. TCP/IP Protocol Stack • Machines on local network N communicate using network N (native) protocol • Machines on Internet communicate using IP IP IP IP IP N1 N1 N’ N” NR NR machine router remote router remote machine EC5001 Sem A 2012/13

  34. IP Address • Station identified by a unique address. • IP version 4 address: 32 bits. • Network id assigned centrally (by ICANN). • Host id assigned by network administration. • IP address space not utilized efficiently – running out of addresses. • IP version 6 uses 128-bit addresses. • 2128 > 1038, world population  6 x 1010 > 232 7 x 109. • adequate for every human and device in the world. Larry Seltzer. Market Solutions to the IP Address Squeeze. EC5001 Sem A 2012/13

  35. TCP • Provides reliable connection oriented communication service • User process (on a host machine or router) addressed by a (16-bit) TCP port number • Process (service) address: 144.214.56.2080 IP address port number • Multiple application processes can reside on one machine (one IP address) using different port numbers • Used by application oriented protocols: FTP, Telnet, HTTP, SMTP, POP, etc. List of Common TCP/IP port numbers EC5001 Sem A 2012/13

  36. Domain Names • IP addresses • Contain routing information (network id) – physical location. • Difficult to memorize by human. • Domain names • Reflects administrative organization. • Easier to memorize (internationalized domain names and new generic top-level domains). • Name space arranged as a (DNS) tree structure. • Naming authority is distributed. • Translation from domain names to IP addresses handled by a distributed Domain Name Service (DNS). • WHOIS – determine the owner of a domain and an IP address. EC5001 Sem A 2012/13

  37. Domain Name System com edu gov net org … uk hk cn 中国 ibm hp cmu berkeley com edu idv kmb cityu cuhk hku cschlee Chinese language top-level domains win ICANN approval EC5001 Sem A 2012/13

  38. ICANN (Internet Corp for Assigned Names & Numbers) • ICANN is an non-profit organization. • Oversees Internet core technology management. • IP address space allocation (through RIRs (Regional Internet Registries)). • Protocol parameters assignment • Domain Name System policy management and root server system management. • Accreditation of domain name registrars (RIRs). • Company accredited can offer registration service. TLD: Top Level Domain ccTLD: country code TLD Source: The Domain Name Industry Brief. EC5001 Sem A 2012/13

  39. Domain Name Registration • Basic registration rules • Very few rules • FCFS (back-order takes 3 months) • May lose right to a name if it crashes with one with “superior” trademark rights • Get name from your ISP and register (preferably) in your name • HKDNR (Hong Kong Domain Name Registration Co. Ltd.) • Replaced JUCC to administer the Hong Kong Network Information Centre ("HKNIC"). • Registration of 2nd and 3rd level Internet domain names, such as, com.hk, org.hk, gov.hk, edu.hk, net.hk, and idv.hk • Registration of Chinese domain names, such as 公司. hk • “Non-profit” organization EC5001 Sem A 2012/13

  40. Internet Structure • Complexity handled by hierarchical structure NAP National Service Provider Tier 1 ISP Tier 2 ISP Regional ISP/Carrier Tier 3 ISP Local ISP Router Organization’s network EC5001 Sem A 2012/13

  41. Overall Internet Structure • Level 1 (interconnect level, NAPs) • Network Access Point (NAP) interconnects Tier 1 ISP’s operated by different companies. • Operated by public carrier companies. • Level 2 (national backbone) • Tier 1 ISP (also called National Service Provider NSP) operated by national carrier (e.g., Sprint, MCI in US). • Tier 1 ISP connects to other Tier 1 ISP (by peering agreement) or connects to NAP. • Level 3 (regional ISP) • Tier 2 ISP (regional ISP) connects to Tier 1 ISP or to NAP. • Level 4 (local ISP) • Tier 3 ISP (local IPS) connects to Tier 2 ISP. • In HK, some ISPs act as both regional and local ISP, e.g., PCCW/Netvigator, I-Cable. • Level 5 (companies, individuals) EC5001 Sem A 2012/13

  42. Overall Internet Structure (cont’d) • HKIX (Hong Kong Internet Exchange) functions like an NAP • Support Intra-IAP (IAP: Internet Access Provider  ISP) within Hong Kong EC5001 Sem A 2012/13

  43. Internet Domain Survey Host Count Source: The ISC Domain Survey (https://www.isc.org/solutions/survey) EC5001 Sem A 2012/13

  44. Digital Access Index (DAI) Source: ITU Digital Access Index (http://www.itu.int/ITU-D/ict/dai) BRIC EC5001 Sem A 2012/13

  45. Accessing the Internet • Direct connection to LAN • LAN is connected to a local ISP. • LAN can be wireless. • Connection to an ISP • Dial-up (or leased line) to a remote access server of an organization network or an ISP (see details) • Broadband connection • Asymmetric Digital Subscriber Line (ADSL) (e.g., Netvigator) • Cable Modem (e.g., i-Cable) • Potential alternative: Broadband Power Line (PLB) (e.g., PowerCom Network Hong Kong Limited) • Wireless • Cellular services • Circuit switched data (2G, like using a dial-up phone line) • Packet switched service. • 2.5G (GPRS, 2001), 3G (2003), HSPA (SmarTone-Vodafone) • Soon: LTE and Wireless LAN type access 802.16 “WiMAX”. EC5001 Sem A 2012/13

  46. Internet Development • Current problems • Bandwidth limited • Wide variations in delays • Not suitable for iso-synchronous data, e.g., digitized audio or video • Last (broadband) mile to the home • Broadband penetration in many countries (e.g. US) is still low • WiMAX may solve ‘last mile’ problem for broadband access • Address space being exhausted • Slowed with NAT (network address translation) • May have ~5 years before exhaustion EC5001 Sem A 2012/13

  47. Next Generation Internet • IP version 6 • US assigned 70% of (4.3 billion) IP verson 4 IP addresses. • Final block of IPv4 addresses were allocated on February 3, 2011. • More urgent needs in Asian countries with large Internet populations: China, India, Korea, etc. • Japan upgraded to IPv6 in 2005, US government in June 2008. • Google and Facebook added IPv6 support. • June 8, 2011 was ‘World IPv6 Day’ – participating organizations switch on IPv6 support on their main web sites. Source: 2009 APNIC Annual Report EC5001 Sem A 2012/13

  48. Readings • Read up the linked pages in the notes. • Optionally: Chapter 3.1 in E-Commerce: Business,Technology, Society, 4th edition. By K Laudon and C Traver, Prentice Hall 2008 EC5001 Sem A 2012/13

  49. Summary Technologies for eCommerce Finding buyers/sellers Search engines, forums, e-advertisements, electronic shop front, etc Negotiating Auction, email, intelligent agents, etc Transacting Shopping cart, payment system, order fulfillment, etc Support Customer services, CRM, data analysis, etc. EC5001 Sem A 2012/13 49

  50. Summary (Cont’d) Fundamental Requirements Networking Foundation infrastructure Contents authoring tools Building contents of pages/sites Interchange of ecommerce data Application development tools Building ecommerce applications Legal and regulatory environment Protect intellectual properties and ecommerce transactions Fast pace of technologies Understanding fundamental principles is important EC5001 Sem A 2012/13 50

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