Web Developer Foundations: Using XHTML

1. Web Developer Foundations: Using XHTML Chapter 12 Key Concepts

2. Learning Outcomes • In this chapter, you will learn how to: • Describe E-Commerce • Identify benefits and risks of E-Commerce • Describe E-Commerce business models • Describe E-Commerce Security and Encryption • Describe EDI (Electronic Data Interchange) • Describe trends and projections for E-Commerce • Describe issues related to E-Commerce • Describe order and payment processing • Describe E-Commerce solution options

3. What isE-Commerce? • The integration of communications, data management, and security technologies to allow individuals and organizations to exchange information related to the sale of goods and services. • Major functions of E-Commerce include: • the buying of goods, • the selling of goods, and • performance of financial transactions on the Internet.

4. E-Commerce Advantages for Businesses • Reduced Costs • Increased Customer Satisfaction • More Effective Data Management • Potentially Higher Sales

5. E-Commerce Advantages for Consumers • Convenience • Easier Comparison Shopping • Wider Selection of Goods

6. E-Commerce Risksfor Businesses • Need for a robust, reliable web site • Fraudulent transactions • Customer reluctance to purchase online • Increased competition

7. E-Commerce Risksfor Consumers • Possible Security Issues • Possible Privacy Issues • Purchasing from photos & descriptions • Possible difficulty with returns

8. E-CommerceBusiness Models • B2C – Business-to-Consumer • B2B – Business-to-Business • C2C – Consumer-to-Consumer • B2G – Business-to-Government

9. Electronic Data Interchange (EDI) • EDI is the transfer of data between different companies using networks. • This facilitates the exchange of standard business documents including purchase orders and invoices. • EDI is not new; it has been in existence since the 1960s. • Organizations that exchange EDI transmissions are called trading partners. • Newer technologies such as XML and Web Services are replacing traditional EDI by allowing trading partners virtually unlimited opportunities to customize their information exchange over the Internet.

10. E-CommerceStatistics Source:Forrester Research as reported on http://www.nua.com/surveys/

11. Typical InternetUser • A recent study by Harris Interactive discussed on Clickz.com (http://www.clickz.com/stats/sectors/geographics/article.php/5911_1011491) found that the typical Internet user in the U.S. now mirrors the U.S. population. Male 49% Female 51% Household Income $40,816 Adults 18-49 74%

12. E-CommerceIssues • Intellectual Property • Security • Fraud • Taxation • International Commerce

13. E-CommerceSecurity • Encryption • Used to ensure privacy within an organization and on the Internet. • The conversion of data into an unreadable form, called a ciphertext. This ciphertext cannot be easily understood by unauthorized individuals. • Decryption • The process of converting the ciphertext back into its original form, called plaintext or cleartext, so it can be understood. • The encryption/decryption process requires an algorithm and a key.

14. E-Commerce SecurityEncryption Types Secure E-Commerce transactions make use of the encryption technologies below: • Symmetric-key Encryption • Asymmetric-key Encryption • Hash Encryption These technologies are used as part of SSL (Secure Sockets Layer) – the technology that helps to make commerce on the Internet secure.

15. E-Commerce SecurityTypes of Encryption(1) Symmetric-Key Encryption • Also called single-key encryption. • Both the encryption and decryption use the same key. • Since the key must be kept secret from others, both the sender and receiver must know the key before communicating using encryption. • An advantage of symmetric-key encryption is speed.

16. E-Commerce SecurityTypes of Encryption(2) Asymmetric-Key Encryption • Also called public-key encryption. • There is no shared secret. • Instead, two keys are created at the same time. • This key pair contains a public key and a private key. • Public-key encryption is much slower than symmetric-key encryption.

17. E-Commerce SecurityTypes of Encryption(3) Hash Encryption • A hash algorithm transforms a string of characters into a usually shorter fixed-length value or key that represents the original string, called a digest. • Hash encryption is one-way encryption. • Hash encryption is used for information that will not be read or decrypted. • The function of hash encryption is to verify the integrity of information.

18. Secure Sockets Layer(SSL) • SSL is a protocol that allows data to be privately exchanged over public networks. • SSL was developed by Netscape and is used to encrypt data sent between a client (usually a web browser) and a web server. • SSL utilizes both symmetric and asymmetric keys. • SSL uses the “https” protocol instead of the “http” protocol • Most browsers display a “lock” icon when SSL is being used.

19. Secure Sockets Layer(SSL) • SSL provides secure communication between a client and server by using: • Server and (optionally) client digital certificates for authentication • Symmetric-key cryptography using a "session key" for bulk encryption • Public-key cryptography for transfer of the session key • Message Digests (hash encryption) to verify the integrity of the transmission

20. SSL in Action

21. SSL & DigitalCertificate • SSL enables two computers to securely communicate by using a digital certificate for authentication. • A digital certificate is a form of an asymmetric key that also contains information about the certificate, the holder of the certificate, and the issuer of the certificate.

22. Digital Certificate • The contents of a digital certificate include: • The public key • Effective date of the certificate • Expiration date of the certificate • Details about the Certificate Authority -- the issuer of the certificate • Details about the certificate holder • A digest of the certificate content

23. Certificate Authority • A Certificate Authority is a trusted third-party organization or company that issued digital certificates. • Well-known Certificate Authorities: • Verisign • http://www.verisign.com • Thawte • http://www.thawte.com

24. Obtaininga Digital Certificate • Request a certificate from a Certificate Authority and pay the application fee. • The Certificate Authority: • verifies your identity, • issues your Certificate, • and supplies you with a public/private key pair. • Store the certificate in your software - such as a web server, web browser, or e-mail application. • The Certificate Authority makes your certificate publicly known.

25. SSL & Digital Certificates • When you visit an e-commerce site that uses SSL, a number of steps are involved in the authentication process. • The web browser and web server go through initial handshaking steps using the server certificate and keys. • Once trust is established, the web browser encrypts the single secret key (symmetric key) that will be used for the rest of the communication. • From this point on, all data is encrypted using the secret key.

26. Checkpoint 12.1 • Describe three advantages of e-commerce for an entrepreneur just starting a business. • Describe three risks that businesses face when engaging in e-commerce. • Define SSL. Describe how an online shopper can tell that an e-commerce site is using SSL.

27. Order &Payment Processing • E-Commerce Payment Models: • Cash • Check • Credit • Smart Card • Micropayments

28. Credit Card OrderProcessing Flow

29. E-CommerceStorefront Solutions • Instant Online Storefront • Yahoo!, Bigstep, Earthstores, FreeMerchant • Off-The-Shelf Shopping Cart Software • Miva Merchant, Mercantec • Custom Built Solution • IBM's WebSphere Commerce Suite, Microsoft's Commerce Server • Visual Studio.NET, Macromedia Dreamweaver MX, IBM’s WebSphere Commerce Studio • Semi-Custom Built Solutions on a Budget • E-Commerce add-ons for FrontPage and Dreamweaver • Paypal order processing • Free shopping cart scripts

30. Checkpoint 12.2 • List three payment models commonly used on the Web. Which one is the most popular, why? • Have you purchased online? If so, think of the last item that you purchased. • Why did you purchase it online instead of at a store? • Did you check to see if the transaction was secure? Why or why not? • How will your shopping habits be different in the future? • Describe three types of e-commerce solutions available. Which provides the easiest entry to e-commerce? Explain.

31. Summary This chapter introduced you to basic e-ommerce concepts and implementations. Consider taking an E-Commerce course to continue your study of this dynamic and growing area of web development.