COMP 3121 EBusiness and Ecommerce Technologies Richard Henson

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COMP 3121 E-Business and E-commerce Technologies Richard Henson University of Worcester September 2011

COMP 3121 E-Business and E-commerce Technologies Richard Henson University of Worcester September 2011

Week 1: On-line Trading Processes and underpinning Technologies n Objectives: ØClarify concepts of e-business

Week 1: On-line Trading Processes and underpinning Technologies n Objectives: ØClarify concepts of e-business and e-commerce ØExplain the basic processes required for a business transaction to take place ØTranslate a business transaction into its on-line equivalent processes ØIdentify the technologies required to service each business process on-line ØProduce a web page to sell a product online

E-commerce and E-business n n n Much misunderstanding about these terms E-commerce is about

E-commerce and E-business n n n Much misunderstanding about these terms E-commerce is about using digital technologies to sell products online E-business is about going beyond this, and using digital technologies for: Ø putting business information selectively on the web Ø engaging selectively with information systems of partner organisations Ø e-marketing Ø managing customer relationships online

Focussing on E-commerce… n n n E-business is fascinating, and is the main growth

Focussing on E-commerce… n n n E-business is fascinating, and is the main growth area for existing, successful, on-line businesses However, for many businesses to first stage is to be able to trade online This means developing an e-commerce website… Ø To create an illusion of a face-face equivalent transaction VIA COMPUTER SCREEN!!!

Breaking Down a Business Transaction n In a nutshell: Ø 1. Ø 2. Ø

Breaking Down a Business Transaction n In a nutshell: Ø 1. Ø 2. Ø 3. Buyer selects goods or service Buyer and seller agree a price Buyer makes payment

Business Transactions – why use technology? n Historically, the transaction is agreed: Øface to

Business Transactions – why use technology? n Historically, the transaction is agreed: Øface to face Øif people were unable to/didn’t want to meet, via third party n Early intervention of Technology: the telephone: ØAdvantage: “face-face” transactions were possible over any distance

Fast Forward… The Digital Revolution n Early 1990 s business information: Ø stored digitally

Fast Forward… The Digital Revolution n Early 1990 s business information: Ø stored digitally Ø processed by digital computer n n Late 1990 s, www - Objective: need a virtual equivalent of face-face interaction Requirement: business processes of a manual transaction need to have Ø effective behind-the-screens processing Ø effective on-line data input-output through interactive screens – designed to be appropriate for all users Ø rapid-response on-line database support n Challenge for e-commerce technologies…

Pre E-commerce computerized business processes n n B 2 B communications mostly paper-based Electronic

Pre E-commerce computerized business processes n n B 2 B communications mostly paper-based Electronic Information systems for INTERNAL use only Electronic -> paper and vice versa for communications between businesses OBVIOUSLY wasteful…

Activities involved in B 2 B ecommerce (1) n n The business develops, builds,

Activities involved in B 2 B ecommerce (1) n n The business develops, builds, nurtures a good working relationship with its suppliers. This will initially be face-face, not online Trusted suppliers provide secure access to parts of their information systems/Intranets to all for checking for product availability, etc. Supplier Business

Activities involved in B 2 B e-commerce (2) n n n In return, the

Activities involved in B 2 B e-commerce (2) n n n In return, the business provides secure access to parts of its information systems/Intranet to trusted suppliers business Suppliers can send invoices supplier The business can make payments…

B 2 C E-commerce (www selling direct to the customer) n n Business markets

B 2 C E-commerce (www selling direct to the customer) n n Business markets products via website and the Internet Business communicates information relating to ordering and payment electronically directly to the customer via secure Internet line Secure Internet link E-Business - seller Consumer - buyer

Basics of Web-based on-line Transactions (apply to B 2 B and B 2 C)

Basics of Web-based on-line Transactions (apply to B 2 B and B 2 C) n Need create web-compliant IT processes that emulate the four basic processes of buying: 1. buyer finds goods/service on web pages within vendor’s website; compares with other vendors 2. buyer makes selections with assistance of a shopping cart and support software 3. buyer selects an electronic method of payment 4. once payment has been authorised, the product or service is supplied

The challenge of online trading n n n Degree of challenge will depend on

The challenge of online trading n n n Degree of challenge will depend on the size of the business and current level of IT use… Large companies will certainly have a sophisticated IT setup “Others” tend to be known as SMEs Ø SME = Small & Medium Sized Enterprise n Level of IT use by an SME will depend on the type of business and “enterprise” of the SMT/board) As compared to: Ø a large company (>250 employees) Ø A microbusiness (<5 employees)

Issues for SMEs wishing to trade on-line n HUGE range of take up of

Issues for SMEs wishing to trade on-line n HUGE range of take up of IT Ø many businesses were computerised in the 80 s and early 90 s – but that’s as far as they went… » unless updated, system not compatible with the www » only larger and more enterprising businesses used e-commerce before the web was available… n Ø some may even now still be paper-based! Where to start with an e-commerce system? Ø Of particular interest if creating one for an independent study… Ø First stop…. SYSTEMS ANALYSIS » need to systematically establish and agree what the existing processes are!!!

SMEs and Systems Analysis n By now, larger businesses have effective e-commerce and e-business

SMEs and Systems Analysis n By now, larger businesses have effective e-commerce and e-business systems Øotherwise would be out of business… n Existing SMEs or new businesses… Ømay not be familiar with close analysis of their business processes Ømay be initially reluctant to disclose information…

Discussion (in small Groups) n Why are SMEs more likely to keep their business

Discussion (in small Groups) n Why are SMEs more likely to keep their business processes to themselves?

Issues with Existing System? n n Learning from “mistakes” In practice, systems do not

Issues with Existing System? n n Learning from “mistakes” In practice, systems do not always work as expected… Ø makes sense to establish strengths/weaknesses and failures of existing system n Make use of this information when developing the new system…

Issues for Businesses thinking of on-line trading n Considerable issues and initial costs involved

Issues for Businesses thinking of on-line trading n Considerable issues and initial costs involved Øwhy bother? Will there be a sufficient ROI? ØUseful to conduct a risk analysis – starting by looking at how different parts of the business will be affected when making such a bold change…

Question 1 for SME: How much of existing information system can/will still be used?

Question 1 for SME: How much of existing information system can/will still be used? n Obviously it saves time and effort if existing digital data can be reused Ø If system is paper-based data will have to be inputted but there will still be a system. What is it? Ø If system has an internal computerised system? » which part(s) are/are not www compatible » which part(s) are/are not secure

If existing system paperbased? (still true for some microbusinesses) n n Costs involved in

If existing system paperbased? (still true for some microbusinesses) n n Costs involved in setting up and managing an all singing all dancing system will be huge! May be best just carry on with a paper-based system as before, but can go to the first stage of on-line trading by: Ø receiving orders via email Ø printing out such orders and processing them through the existing paper-based system Ø ask business to think about a digital information system…

If existing system paperbased? (continued) n SME still needs a web site Ø to

If existing system paperbased? (continued) n SME still needs a web site Ø to display products Ø to provide an email address for orders n n n Still need email to receive orders Still need web hosting and website management Still need to advertise web presence

If existing information system is computerised, but not www compatible n Three choices: Ø

If existing information system is computerised, but not www compatible n Three choices: Ø keep the new web-based operation separate from any existing internal computerised system? Ø integrate internal information system with new webbased operation Ø keep separate initially and integrate later n In each case, website will be much more sophisticated than the simple products list & email address that may be acceptable to a previously paper-based SME!

SME chooses keep www system & Internal system separate… n n n Web based

SME chooses keep www system & Internal system separate… n n n Web based system completely new Existing computerised information system remains as it is, separate from the Internet! But… the systems need to communicate… Ø EITHER print out and re-key » retrograde step? » labour intensive and expensive? Ø OR develop a computerised interface » major software project? » very expensive but ultimately saves on labour costs (ROI)

The FULL WORKS! Integrated Int & Ext Systems n Not a light undertaking! Need

The FULL WORKS! Integrated Int & Ext Systems n Not a light undertaking! Need to: Ø develop new www-based link to the Internet Ø provide a www-based user interface (Intranet) Ø re-engineer the internal computerised system into www format n Disadvantages: Ø may be expensive/time consuming to implement Ø Could compromise security of internal systems Ø will be disruptive to staff in the short term n Advantages: Ø should be inexpensive to run (ROI) Ø reduces/minimises unit cost per transaction (ROI)

Other Issues for SMEs n n May lack computer expertise (especially if mostly paper-based

Other Issues for SMEs n n May lack computer expertise (especially if mostly paper-based at the moment) May be concerned about exposing their information to the world On-line payment systems may be perceived as inherently not secure May not think it is worth the expense! Ø would the reduction in transaction costs be enough to justify their technology investment n May be also worried about… ?

Group Exercise on SME Issues One plays the role of SME boss n Others

Group Exercise on SME Issues One plays the role of SME boss n Others pull out issues that may concern him/her regarding on-line trading n One person makes a note of issues discussed… n

B 2 C: the consumer end of the Internet revolution! n SMEs could now

B 2 C: the consumer end of the Internet revolution! n SMEs could now conduct direct businessconsumer transactions (B 2 C e-commerce) Ø impossible before this date because consumers simply didn’t possess the technology Ø technology that makes B 2 C possible had been building for at least 10 years Ø Leapt into the public domain in 1995 -6 (US), two years later (UK) Ø now sometimes the case that consumers have more technology in their homes (including small networks!) than the small business!

Activities EXPECTED by B 2 C consumers n Business produces a website, available worldwide

Activities EXPECTED by B 2 C consumers n Business produces a website, available worldwide 24/7, via the Internet Ø provides information about products/services Ø gives customers options to buy its products Ø collects information about its customers n Website has a built-in system that includes: Ø On-line ordering Ø On-line payment via credit card/switch, etc. Ø Payment in a range of currencies Ø Automatic handling of taxation issues

Scope of this module n NOT an introductory e-commerce module Ø COMP 2113 looked

Scope of this module n NOT an introductory e-commerce module Ø COMP 2113 looked at the business processes, and wider issues involved n Seeks to integrate relevant business data from an existing system with a web-based ecommerce system Ø a MUCH more complex undertaking!!! n Even so, security issues are not covered in depth Ø if you want to cover this as well, try COMP 3123…

BREAK… (20 minutes)

BREAK… (20 minutes)

From now on, it gets Technical!!! n Prior knowledge requirements: Ø relational databases Ø

From now on, it gets Technical!!! n Prior knowledge requirements: Ø relational databases Ø HTML, and VB/Java scripting Ø basics of client-server networks n Covered only as revision and knowledge equivalent to the following will be assumed: Ø Web Design COMP 1141 pref COMP 2121 Ø Database COMP 1112 pref. COMP 2001 n Programming and scripting experience, e. g. COMP 1131 or 1132 will also be very useful…

What makes up the Internet? 900 million Server computers!

What makes up the Internet? 900 million Server computers!

Internet Servers Very powerful n Managed 24 hours a day n Secure operating system,

Internet Servers Very powerful n Managed 24 hours a day n Secure operating system, MUST BE properly configured … n Øbreed of UNIX (e. g. LINUX) ØWindows Server (2000? /2003/2008) n Should therefore be impossible for such persons to access private data

Security of Internet Servers 900 million Internet server n Security depends on management and

Security of Internet Servers 900 million Internet server n Security depends on management and configuration… n Øare there enough trustworthy UNIX and Windows Server experts Øto manage all access to the 900 million computers properly (? ) Øto protect the servers (and their data) against hackers/cyberterrorists, etc. (? )

Essential Technologies underpinning B 2 C E-commerce n n Internet and www infrastructure (governed

Essential Technologies underpinning B 2 C E-commerce n n Internet and www infrastructure (governed by International bodies) Web Server software Ø Web Site hosting systems that will support static and dynamic web pages Ø Interaction with managed data storage n Web Browser software Ø Environment for HTML, CSS, programming scripts that give the user their browsing experience

Essential Technologies underpinning B 2 C E-commerce n n n Database – Web Server

Essential Technologies underpinning B 2 C E-commerce n n n Database – Web Server connectivity software Database Management System & system for recording and retrieving customer information System for recording customer behaviour whilst browsing website Ø controversial – cookies outlawed by French government as an infringement of privacy!

Internet Protocols n Networks are very complex, and so is the software (protocols) used

Internet Protocols n Networks are very complex, and so is the software (protocols) used to manage them! n A simplified model of network protocols regards communication as taking place through 4 software layers (actually 7): Ø Application layer - FTP, HTTP, SMTP, POP 3 Ø Transport or Host-Host - TCP protocol Ø Internet layer - IP protocol Ø Physical Network access layer

Application Layer Internet Protocols and the WWW n n n The application layer give

Application Layer Internet Protocols and the WWW n n n The application layer give the Internet its functionality The www makes use of HTTP (hypertext transfer protocol) Other important application layer protocols: Ø FTP (file transfer protocol) » to upload/download files between user computer and a remote computer via the Internet Ø SMTP (Simple Mail Transfer Protocol) » Used for sending email messages through the Internet

More about the World Wide Web n More than 8 billion interlinked web pages

More about the World Wide Web n More than 8 billion interlinked web pages Øeach created using the HTML language standard ØHTTP protocol used for linking and transferring web pages n Uniform Resource Locator (URL) system used for uniquely identifying individual web pages

Web Server Software n Runs on a Unix or Windows server n Østores web

Web Server Software n Runs on a Unix or Windows server n Østores web pages Ømakes web pages available to remote computers using either HTTP or other application layer protocols Øexercises control over who accesses those web pages, and who can edit/delete them Øruns scripts and provides database interaction

Web Browser n Software Øtranslates HTML code into a visual screen output Øexecutes programs

Web Browser n Software Øtranslates HTML code into a visual screen output Øexecutes programs written in given programming languages e. g. » Java. Script » VBScript » “run-time” code (Active. X) Øinteracts with web server using the HTTP (and FTP) protocol

How a Static Web Page gets displayed n First of all, the relevant HTML

How a Static Web Page gets displayed n First of all, the relevant HTML document must be retrieved: Ø user types the URL into a one-line text window in browser Ø Browser passes the text to the remote web server (via default Internet gateway)

How a Static Web Page gets displayed (2) n Web server locates the file

How a Static Web Page gets displayed (2) n Web server locates the file for that web page in its own storage folders n File containing HTML etc code copied back to default gateway and routed to the IP address of the local computer

How a Static Web Page gets displayed (3) n File suffix checked by browser…

How a Static Web Page gets displayed (3) n File suffix checked by browser… n If. htm or. html suffix: Ø HTML etc. code is read & processed by local CPU using a program called an interpreter Ø Results of processing passed to graphics card CPU

How a Static Web Page gets displayed (4) n results of conversion converted into

How a Static Web Page gets displayed (4) n results of conversion converted into binary display signals by the CPU and graphics card n Signals transmitted to screen and the converted HTML data is displayed

Client-side scripting & dynamic Web Pages n Berners-Lee’s original intention for the HTML model

Client-side scripting & dynamic Web Pages n Berners-Lee’s original intention for the HTML model was to use text, links, and graphics Ø soon became even more sophisticated: » embedded Java. Script, VBScript, or code from other languages » HTML forms allowed interaction with databases » templates and Cascading Style Sheets provide scope for a huge range of formatting options n Now possible to display virtually anything Ø very wide range of multimedia and special effects available… Ø Relational databases allow query and retrieval of complex data structures

Server-side Scripts & dynamic Web pages n This time, the programming code is sent

Server-side Scripts & dynamic Web pages n This time, the programming code is sent to and runs at the web server end… Ø creates a web page for the client end with a table to display the data n If the data picked up from the server has been changed (e. g. by use of SQL query)… Ø the client display is changed Ø web pages become “dynamic” » i. e. readily changeable without changing the web page code n Effect: Ø by triggering SQL commands on the server, local web page appears to interact with a database

All of these skills will be explored in this module over the coming weeks

All of these skills will be explored in this module over the coming weeks n n n Practical for this week: static web pages in the Visual Studio environment… Then (fun bit!) creating something dynamic with embedded scripting See you next week, and we’ll take this a little further…?