Overview
- 1. EMTM 553 Electronic Commerce Systems Insup Lee Department of Computer and Information Science University of Pennsylvania lee@cis.upenn.edu www.cis.upenn.edu/~lee 3/9/01 EMTM 553 1
- 2. Electronic Commerce (E-Commerce) • Commerce refers to all the activities the purchase and sales of goods or services. – Marketing, sales, payment, fulfillment, customer service • Electronic commerce is doing commerce with the use of computers, networks and commerce-enabled software (more than just online shopping) 3/9/01 EMTM 553 2
- 3. Brief History • 1970s: Electronic Funds Transfer (EFT) – Used by the banking industry to exchange account information over secured networks • Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-commerce within companies – Used by businesses to transmit data from one business to another • 1990s: the World Wide Web on the Internet provides easy- to-use technology for information publishing and dissemination – Cheaper to do business (economies of scale) – Enable diverse business activities (economies of scope) 3/9/01 EMTM 553 3
- 4. E-commerce applications • Supply chain management • Video on demand • Remote banking • Procurement and purchasing • Online marketing and advertisement • Home shopping • Auctions 3/9/01 EMTM 553 4
- 5. Ecommerce infrastructure • Information superhighway infrastructure – Internet, LAN, WAN, routers, etc. – telecom, cable TV, wireless, etc. • Messaging and information distribution infrastructure – HTML, XML, e-mail, HTTP, etc. • Common business infrastructure – Security, authentication, electronic payment, directories, catalogs, etc. 3/9/01 EMTM 553 5
- 6. The Main Elements of E- commerce • Consumer shopping on the Web, called B2C (business to consumer) • Transactions conducted between businesses on the Web, call B2B (business to business) • Transactions and business processes that support selling and purchasing activities on the Web – Supplier, inventory, distribution, payment management – Financial management, purchasing products and information 3/9/01 EMTM 553 6
- 7. Advantages of Electronic Commerce • Increased sales – Reach narrow market segments in geographically dispersed locations – Create virtual communities • Decreased costs – Handling of sales inquiries – Providing price quotes – Determining product availability • Being in the space 3/9/01 EMTM 553 7
- 8. Disadvantages of Electronic Commerce • Loss of ability to inspect products from remote locations • Rapid developing pace of underlying technologies • Difficult to calculate return on investment • Cultural and legal impediments 3/9/01 EMTM 553 8
- 9. The process of e-commerce 1. Attract customers – Advertising, marketing 1. Interact with customers – Catalog, negotiation 1. Handle and manage orders – Order capture – Payment – Transaction – Fulfillment (physical good, service good, digital good) 1. React to customer inquiries – Customer service – Order tracking 3/9/01 EMTM 553 9
- 10. Web-based E-commerce Architecture Tier 1 Tier 2 Tier 3 Tier N DMS Client Web Server Application Database Server Server 3/9/01 EMTM 553 10
- 11. E-commerce Technologies • Internet • Access security • Mobile technologies • Cryptographic security • Web architecture • Watermarking • Component programming • Payment systems • Data exchange • Multimedia • Search engines • Data mining • Intelligent agents 3/9/01 EMTM 553 11
- 12. Infrastructure for E-commerce • The Internet – system of interconnected networks that spans the globe – routers, TCP/IP, firewalls, network infrastructure, network protocols • The World Wide Web (WWW) – part of the Internet and allows users to share information with an easy-to-use interface – Web browsers, web servers, HTTP, HTML • Web architecture – Client/server model – N-tier architecture; e.g., web servers, application servers, database servers, scalability 3/9/01 EMTM 553 12
- 13. E-Commerce Software • Content Transport – pull, push, web-caching, MIME • Server Components – CGI, server-side scripting • Programming Clients • Sessions and Cookies • Object Technology – CORBA, COM, Java Beans/RMI • Technology of Fulfillment of Digital Goods – Secure and fail-safe delivery, rights management 3/9/01 EMTM 553 13
- 14. System Design Issues • Good architectural properties – Functional separation – Performance (load balancing, web caching) – Secure – Reliable – Available – Scalable 3/9/01 EMTM 553 14
- 15. Creating and Managing Content • What the customer see • Static vs. dynamic content • Different faces for different users • Tools for creating content • Multimedia presentation • Integration with other media • Data interchange • HTML, XML (Extensible Markup Language) 3/9/01 EMTM 553 15
- 16. Cryptography • Keeping secrets – Privacy: interceptor cannot use information – Authentication: sender’s identity cannot be forged – Integrity: data cannot be altered – Non-repudiation: sender cannot deny sending • How to evaluate cryptography • Secret key (symmetric) cryptography; e.g., DES • Public key (asymmetric) cryptosystems; e.g, RSA • Digital signatures, digital certificates • Key management; e.g., PKI 3/9/01 EMTM 553 16
- 17. Security • Concerns about security • Client security issues • Server security issues • Security policy, risk assessment • Authentication methods – Something you know: passwords – Something you have: smart card – Something you are: biometrics • Firewalls, proxy servers, intrusion detection • Denial of service (DOS) attacks, viruses, worms 3/9/01 EMTM 553 17
- 18. Payment Systems • Role of payment • Cash – properties: wide accept, convenient, anonymity, untraceability, no buyer transaction cost • Online credit card payment, Smart Cards – Secure protocols: SSL, SET • Internet payment systems – Electronic cash, digital wallets • Micro-payments • Wireless devices 3/9/01 EMTM 553 18
- 19. Transactions Processing • Transactions and e-commerce • Overview of transaction processing • Transaction processing in e-commerce • Keeping business records, audit, backup • High-availability systems • Replication and scaling • Implementation 3/9/01 EMTM 553 19
- 20. Other System Components • Taxes • Shipping and handling • Search engines • Data mining • Intelligent agents • Inventory management, enterprise resource planning (ERP) • Customer relation management (CRM) 3/9/01 EMTM 553 20
- 21. Course Outline • Overview of e-commerce • The Internet and the WWW • E-commerce software building blocks and tools • Scalability, high-performance servers, web caching • Basic cryptography • Security, watermarking, firewalls • Payment systems • Current and future directions 3/9/01 EMTM 553 21