EC-Introduction-2001 by zhangyun


									               Eθνικό Μετσόβιο Πολςτεσνείο
             Μεταπτςσιακό Τμήματορ ΗΜ & ΜΥ
                      (Άνοιξη - 2001)

         Δίκτςα Πποστιθέμενηρ Αξίαρ EDI και
         Ευαπμογέρ Ηλεκτπονικού Εμποπίος

          Εισαγωγή στο Ηλεκτρονικό
         Εμπόριο / Επιχειρείν (Electronic
             Commerce / Business)
Δ.Μ.Π.            Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 1
• Τν κάζεκα εμεηάδεη ην ζέκα ηνπ Ηιεθηξνληθνύ
  Δκπνξίνπ / Ηιεθηξνληθνύ Δπηρεηξείλ θαη ηωλ Γηθηύωλ
  Πξνζηηζέκελεο Αμίαο Electronic Data Interchange
  (EDI) από πνιιέο πιεπξέο.
• Παξνπζηάδεηαη ε ζπκβνιή ηωλ Γηθηύωλ Υπνινγηζηώλ
  ζηηο Δθαξκνγέο Ηιεθηξνληθνύ Δκπνξίνπ (Γίθηπα
  πξνζηηζέκελεο αμίαο OSI - Φ.400, TCP/IP - Internet,
• Δμεηάδνληαη ζέκαηα αζθάιεηαο θαη πξνζηαζία ηωλ
  πιεξνθνξηώλ      (κεραληζκνί    πξόζβαζεο       θαη
  πηζηνπνίεζεο, αθεξαηόηεηα θαη απζεληηθόηεηα
 Δ.Μ.Π.         Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 2
                  ΣΥΝΟΨΗ (2)

• Παξνπζηάδνληαη Πεξηβάιινληα Λνγηζκηθνύ γηα
  Δθαξκνγέο Ηιεθηξνληθνύ Δκπνξίνπ (απηνκαηνπνίεζε
  ζπλαιιαγώλ, πξόηππα ινγηζκηθνύ).
• Παξνπζηάδεηαη ε αξρηηεθηνληθή ηωλ πιεξνθνξηαθώλ
  ζπζηεκάηωλ γηα εθαξκνγέο Ηιεθηξνληθνύ Δκπνξίνπ
  (νθέιε, επίδξαζε ζηελ νξγάλωζε ηεο παξαγωγήο θαη
  δηαθίλεζε αγαζώλ, εθαξκνγέο κεηαμύ επηρεηξήζεωλ -
  πηζηωηηθώλ θνξέωλ - δεκνζίνπ - πνιηηώλ, λνκηθό -
  θαλνληζηηθό πιαίζην, δηεζλήο θαη ειιεληθή εκπεηξία).

   Δ.Μ.Π.         Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 3
               ΣΥΝΟΨΗ (3)
• Δμεηάδνληαη ζέκαηα δνκήο θαη ηππνπνίεζεο
  κελπκάηωλ EDI θαη νη δηαδηθαζίεο ηππνπνίεζεο /
  πηζηνπνίεζεο EDI ζηελ Διιάδα.
• Τέινο παξνπζηάδεηαη ε ζπκβνιή ηωλ Βάζεωλ
  Γεδνκέλωλ γηα εθαξκνγέο Ηιεθηξνληθνύ Δκπνξίνπ
  (Web-based data bases, ειεθηξνληθά ζεκεία
  ζπλαιιαγώλ, δηαιεηηνπξγηθόηεηα Βάζεωλ Γεδνκέλωλ,
  εθαξκνγέο ηειεζπλεξγαζίαο - θαηαλεκεκέλν
  workflow) θαζώο θαη ε Οινθιήξωζε Τερλνινγηώλ
  Ηιεθηξνληθνύ Δκπνξίνπ, δειαδή ε αξρηηεθηνληθή
  ελνπνηεκέλνπ ινγηζκηθνύ.

 Δ.Μ.Π.        Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 4
  Introduction: what is electronic commerce?

• Electronic Commerce (E-Commerce) is the process of two or more parties
  making business transactions via computer and some type of network.
        - The Electronic Commerce Guide: Expert Advice.
                                               Mecklermedia Corporation, 1998.
• The business practices and technologies known collectively as Electronic
  Commerce (E-Commerce) include:
    – Using E-mail for business communication
    – Using Electronic Funds Transfer (EFT) with your bank, your suppliers, and your
    – Establishing a Website to market your products or services
    – Implementing an Internet-based retail business
    – Implementing Electronic Data Interchange (EDI) with your suppliers and clients
    – Integrating EDI with your in-house financial systems

   Δ.Μ.Π.                 Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 5
          Introduction: what is electronic commerce? (cont.)

  – Implementing Technical Data Interchange (TDI) to exchange engineering
  – Implementing compatible E-Commerce practices throughout your
    acquisition to distribution supply network
  – Creating a "virtual enterprise" that fully integrates the design,
    manufacturing, finance, inventory control, distribution and maintenance
    systems in your business

  – Carrying out business activities that lead to an
    exchange of value across telecommunications
 Δ.Μ.Π.               Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 6
            Typical Classification

• Business-to-Business (B2B)
• Business-to-Public Body (e.g.,
• Business-to-Individual / Consumer (B2C)
• Individual-to-Public Body

Δ.Μ.Π.      Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 7
         ECommerce: islands (of automation) in the sun

Δ.Μ.Π.             Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 8
         Introduction: the exploding growth of the market

                                                 350                                                65%    70%
                                                                     Web Users
     E-Commerce                                  300                 Web Buyers           54%              60%
        growth is                                250                                                       50%

                                                                                                                 Percentage of Buyers
                         In Millions of Useers

       more than                                 200                              32%                      40%
        150% per                                 150                                                       30%
        year or 4                                100        6%                                             20%
      times faster                               50                                                        10%
         than the                                  0                                                       0%
          overall                                         1998       1999        2000     2001    2002
                                                       Source : Forrester Research, IDC
Δ.Μ.Π.               Ι. Βαζηιείνπ --- Electronic Commerce                                 Δηζαγωγή --- 9
         Introduction: the exploding growth of the market



    The Real            300
                                                        360 Billion**
Revenue Growth          250
                                                          By 2000
in E-Commerce           200

   has not yet          150

   happened             100            32 Billion*
                          50             Now
                                    1997               1998              1999              2000
                                     Source: Yankee Group, IDC, Forrester Research
                    * 22% from consumer transactions and 78% from business-to-business transactions.

                    ** A more conservative estimation of “only” 294 billion in revenue by 2002, was given
                    by the West Chester Electronic Commerce Resource Center. 8.8% out of the revenue from
                    consumer transactions and 91.2% from business-to-business transactions.

Δ.Μ.Π.              Ι. Βαζηιείνπ --- Electronic Commerce                     Δηζαγωγή --- 10
             Introduction: a changing demographic

           E-Commerce is                           To new, mainstream
          moving from the                           users. Including 1st
          technologist and                           time buyers and
            hobbyists, the                        larger percentages of
         “computer literate”                              women

                           Source: IDC, Forrester Research
Δ.Μ.Π.             Ι. Βαζηιείνπ --- Electronic Commerce      Δηζαγωγή --- 11
                    Introduction: major players

 •       Dell                       •    18 Billion (1 billion Web)
 •       Gateway                    •    7.4 Billion (550 million Web)
 •       CompUSA                    •    5.3 Billion (357 million Web)
 •       Amazon                     •    600 Million
 •       NECX                       •    406 Million         The Expected
                                                               Growth for
 •       Egghead                    •    293 Million
 •                    •    120 Million
                                                             companies in
 •                 •    57 Million         2001 is at least
 •                •    23 Million              150%
 •               •    15 Million *
                                                               purchased by Compaq for
                                                                   230 million dollars

Δ.Μ.Π.                  Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 12
             Integrated technology:
                  an example

            IBM’s Net.Commerce
         Examples of E-Businesses
              Getting Started
              Shopping Flow
         The Net.Commerce Product

Δ.Μ.Π.        Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 13
                 E-Commerce technology

• Includes tools for a company to set up its E-Business.
• We will review IBM’s Net.Commerce as an example
  of what one can get from state-of-the-art technology.
• Net.Commerce allows the setting of a generic E-
  Business without much knowledge of the web, HTML,
  Java and the like.

 Δ.Μ.Π.         Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 14
                        Example E-Businesses

• West Food Mart is a retail store selling groceries. The store features
  are simple, allowing a customer to get in and out with a few clicks.
  Notes: This type of store is appropriate for businesses which target
  customers, products are familiar, shoppers usually know what to buy,
  shoppers often buy many items of the same kind.
• The Office Window. This is a wholesale store selling furniture and
  computer equipment. This store groups customers into categories,
  offers them different offices, I.e., lists of offerings, prices etc. Here
  each customer must register and is classified by the office
• Metro Mall. Contains several stores, offers generic functionality for
  payment, shipping, security etc., which they can all use.

Δ.Μ.Π.                 Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 15
                               Getting Started

• Determine a site administrator. She is responsible for setting up and
  managing the high level functions associated with the site, including:
  store or mall creation, adding/removing stores to a mall, maintaining a list
  of shipping carriers,…
• Determine a store administrator, who is responsible for day-to-day
  activities associated with running a store, including: entering, updating
  and deleting data; creating and updating store pages; creating new
  commands, or replacing overridable functions (which are activated by the
  site administrator)
• For a single-store site, the two positions will usually be filled by one
• Link up to one or more databases, or create new ones. These store
  product, customer and other information.

 Δ.Μ.Π.                 Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 16
                              Storing Models

There are three types of store models to choose from:
• One-stop shop -- shoppers can quickly find and order the product; no
   registration facility is provided, and only shipping information is required;
• Personal delivery shop -- also has a simple navigation structure, but has
   features for personalizing shopping; shoppers register and have shopping
   carts; their selections (buying, or placing product in cart) are recorded;
   shoppers can also have an address book for places they send stuff to;
• Business-to-business store model -- this is intended for corporate
   purchasing; now merchant can group clients into shopper groups (called
   offices) and offer them different prices; before making a purchase, a client
   must register and receive approval from an office manager

Δ.Μ.Π.                 Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 17
                    Creating a store (or mall)

• Choose a store model (among existing models, or create your own)
• [To actually build your store or mall, you can start from a sample and
  customize it your requirements, or start from scratch.]
• [If you are building a store within a mall, you may use the functions
  provided by the mall, or override them and build your own for your
• Create a store record, including information about the store and
  merchant; set up tax rates and define access control.
• Set up tasks; a task is a process that you want to customize, such as
  checking inventory, calculating the price of an item, or handling an
• Specify shipping providers.

Δ.Μ.Π.               Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 18
                 Store management information

 Includes, among other things:
 • Currency and contact information;
 • Store tax rates -- very important, because you can have across-the-
    border shopping;
 • Category information -- the store’s merchandise is organized into
 • Shipping services -- shipping services, options and charges;
 • Product information -- for products and items (variant products),
    including SKU#, price, thumbnail and full-size image,…
 • Discount information;
 • Shopper groups -- different groups may get different discounts;

Δ.Μ.Π.               Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 19
                           Creating the shopping flow

                                        registerForm                      Registration
                                                                          Order status
    Category                           ItemAdd/
     Display                            Display

Category                   Product                      Interest
 pages                      pages                          list

         Product                                          OrderItemList
            OrderItemDisplay            order

Shipping            List   Place                     Check                    Confirmation
 details                   order                      out                        page
                                        Order                       Order
                                        Display                    Process
Δ.Μ.Π.                      Ι. Βαζηιείνπ --- Electronic Commerce          Δηζαγωγή --- 20
Net.Commerce features

• Single or multiple store and storefront support.
• Scalability -- server and databases can run on one or more machines.
• Multiple platform support -- from laptops to clusters of RS/6000 AIX
  machines; supports several operating systems including Windows NT
  and Unix.
• System integration support -- with existing systems and databases.
• Dynamic page generation -- pages generated dynamically, revised
  when data change.
• Supports multiple natural languages.
• Product advisor support -- allows merchant to build a knowledge base
  of sales questions and answers

Δ.Μ.Π.              Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 21
Net.Commerce capabilities

• Customer buying groups -- allows some customization of
  what is offered to whom and at what price.
• Reorders -- customers can reorder, instead of always
  ordering from scratch.
• Customer enrolment
• Buyer account administration
• Product organization
• Multiple navigation paths
• Tax calculation function
• Shipping selection and charges function

Δ.Μ.Π.           Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 22
                               Net.Commerce START

          Net.Commerce                     Net.Commerce Server
          Store creator                           Commands
          Sample stores                           Tasks
          Site manager                            Overridable fcns
          Store manager                           Macros
          Template designer

                Dynamic Page           Web Server            Utilities
                                       Lotus Go            Mass import
                   Cache               Domino              DB cleanup...


         Suppliers                      Shoppers                           Merchants

Δ.Μ.Π.                        Ι. Βαζηιείνπ --- Electronic Commerce            Δηζαγωγή --- 23
                           Net.Commerce PRO

                    Supplier/Seller Business Systems
         Order mgmt               Pricing                  Product/Catalog
         Fulfillment              Sales tax                Customer service
         Inventory                Accounting               Make to order
                                  Payment                  Data mining
         Supply chain

          Supply Chain           System                Product Advisor
          Interfaces             Interfaces            Product exploration
          EDI                    CICS                  Catalog builder
          SAP R/3                IMS                   Sales assistant
                                                       Product comparison
                                                       Shopping metaphor

Δ.Μ.Π.                  Ι. Βαζηιείνπ --- Electronic Commerce         Δηζαγωγή --- 24
               Historical Development
• E-Commerce
         – Electronic Data Interchange (EDI)
            • business-to-business e-commerce for the delivery of
              structured business messages (since 1980)
            • Standards:
               –   ANSI X.12
               –   EDIFACT (ISO)
               –   UN / GTDI (United Nations for Tradacom - an EDI net)
               –   SWIFT (propietary by 3600 financial institutions)
               –   CALS (Department of Defense - USA)

         – e-mail
            • X.400 Standard
            • cc:mail (de facto for business-to-business)
Δ.Μ.Π.                   Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 25
           Historical Development
• Automated Teller Machines (ATMs)
   – widespread for information and cash delivery
   – electronic point-of-sale data used by retailers
   – funds transfer methods supported (credit cards, digital
     money, etc.)
   – Minitel in FRANCE, BTX in GERMANY
• Internet Commerce
   – following major technological developments
Δ.Μ.Π.             Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 26
• Business-to-Business Opportunities
         • Supply Chain: Each member adds value to a product and sells
           it to the next supplier until it reaches the customer
         • Example: Raw Material Supplier, Manufacturer, Retailer,
           Consumer ALL participate in the supply-chain through the
           Internet and also use Banking Services
         • Today: mostly FAX or regular Post are used

• Business-to-Consumer Opportunities
         • New channel merchants have to reach the customers
         • targeting consumer groups

• Business-to-Government Opportunities
         • More restrictive because of rigid regulations
Δ.Μ.Π.                Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 27

• DRIVERS for the Uptake of E-Commerce
   – Time-to-market
          • fast supply-chain
   – Customer Relationships
          • loyal, happy customers
   – Reduced Costs
          • no storage, no intermediaries
   – Access to the Global Market

 Δ.Μ.Π.                Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 28
              EC OBJECTIVES

• Streamlining Procurement Processes;
• decrease costs
• Decrease length of production cycles
• Achieve closer customer - vendor relationship
• Enhance Competitiveness and Economic Growth
• Enable Enterprises to Conduct Business with distant
• Empower Small Businesses
    Δ.Μ.Π.       Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 29
          + variable mark-up            + variable mark-up

PRODUCT       Distribution                   Retailer
OWNER         Company                        Company              CONSUMER


                                Standard Cost


OWNER                                                               CONSUMER

Δ.Μ.Π.           Ι. Βαζηιείνπ --- Electronic Commerce        Δηζαγωγή --- 30
                       LEGAL ISSUES

                   Multimedia                    Agents

                    OSI         ATM           TCP/IP

                                                  Bidding /
           Search Engines                         Negotiations

PRODUCT                                                              Retailer
OWNER                                                                Company

Δ.Μ.Π.           Ι. Βαζηιείνπ --- Electronic Commerce        Δηζαγωγή --- 31
         Changes in Organizations -- Transition
         – positioning for e-commerce
            • implementing an Intranet (internal communications
              for a good infrastructure)
            • links with new suppliers
            • adapting the legacy systems to a new e-commerce
              oriented environment
         – re-engineering the business
            • adapt organization processes for an e-commerce
              environment (e.g., changing or even deleting them)
         – re-defining the business
            • outsourcing (even core activities!)
            • virtual companies
Δ.Μ.Π.                 Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 32
               Critical Success factors
• Critical Factors for Success
         – Security
              • Encryption and other security technologies (firwalls,
                smart cards, protocols, etc.)
         –   Acceptance of new payment methods
         –   Availability of infrastructure and bandwidth
         –   Cost to business and consumers
         –   Legal and regulatory issues
              • IPR, consumer protection, security regulation,
                content regulation, cross-border regulation, etc)
         – Linguistic and cultural issues
Δ.Μ.Π.                   Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 33
         Technological Infrastructure

Δ.Μ.Π.   Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 34
  – high performance, interoperability, protocols, support for
    interactivity - interoperability, tele conferencing, etc.
  – privacy, security, trust, smartcards
  – (financial) data interchange, business processes, business re-
    engineering, electronic money, regulation, etc.
  – vast amount of multimedia data, image exchange,
    compression, user interfaces
 Δ.Μ.Π.             Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 35

• Two main methods are used for transferring
  ECommerce data:
         – VAN (Value Added Networks)
         – Internet

Δ.Μ.Π.             Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 36
             VAN: Value Added Network
• A VAN is a company that provides a telecommunication service
  in a common form and allows delivery and receipt of electronic
  transmissions between companies (the equivalent of the US
  Postal Service in the “old days.”)
• The most famous VAN is GEISCO - GE Information Services
  Company (Pronounced Guys Co).
• Activities:
   – Initialization: VAN will set up the trading partners with Mailboxes.
   – The Buyer and Seller put transactions into and retrieve transactions from
     their mailboxes on a schedule.
   – The VAN will sort each parties’ mail and place it in the correct mailbox.
     On most VAN's this process takes around thirty minutes to an hour.
• Heterogeneous VAN communication is common.

  Δ.Μ.Π.                Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 37
                        Communication management:
                              an example

• The TCP/IP protocol:
         – Developed by a Department of Defense (DOD) research project to
           generate a network of networks (the "Internet").
         – IP (Internet Protocol): Part of the Network layer of the OSI model,
           Uses a four byte destination address (the IP number, e.g.
         – Numbers are assigned by the Internet authorities and granted by the
           organization. An IP router decides where a packet is sent next, by the
           "clockwise" algorithm, by alternating among algorithms or by identifying
           least busy links.
         – TCP (Transmission Control protocol): Part of the transport layer,
           responsible for verifying the correct delivery of data from client to server;
           the TCP packet has a header with meta-information about the packet; a
           socket is a package of subroutines that provide access to TCP/IP on most

Δ.Μ.Π.                      Ι. Βαζηιείνπ --- Electronic Commerce     Δηζαγωγή --- 38
         Πλεονεκτήματα από το Internet

Δ.Μ.Π.         Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 39




Δ.Μ.Π.        Ι. Βαζηιείνπ --- Electronic Commerce    Δηζαγωγή --- 40
                Security, authentication, and privacy

• In order to provide a trust-worthy
  ECommerce, a network should provide the
  following three capabilities:
         – Security: the transfer of data is protected from
           observation or alteration by external parties.
         – Authentication: the identity of a participant
           should be authenticated, to prevent frauds.
         – Privacy: the identity of the customer possibly
           remains anonymous.

Δ.Μ.Π.                Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 41
                 Electronic Data Interchange (EDI)

• EDI is a standard of computer to computer interchange of business
  documents in a machine-readable form.
• Leading EDI standards: EDIFACT [BERGE91] (Europe) and ANSI X12
  [HAMILTON93] (North-America).
• A common EDI scenario:
   – A customer sends an EDI purchase order to a provider (transaction 850).
   – The provider returns a purchase order acknowledgment to the customer
     (transaction 855).
   – At ship time, the provider sends the customer an EDI advance ship notice
     (ASN) stating the goods to be shipped (transaction 856).
   – Once the goods have been shipped and billing has been processed, the provider
     sends the customer an EDI invoice (transaction 810).
   – The customer sends payment information to its bank, which wires funds to the
     provider’s bank through electronic funds transfer (EFT) or financial EDI.

 Δ.Μ.Π.                 Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 42
                       EDI (semi) structure

• Components of an EDI message:
     – data element: a datum identified by a reference number.
       Examples: date, price, purchase order number, quantity
       on order.
     – data segment (or: segments): a sequence of data
       elements. For example, a purchase order segment
       consists of part number, part description, quantity, unit
       of measure and cost.
     – transaction set (or message): a set of data segments. For
       example, an invoice (ASC X12 set number 810).
     – functional group: a set of similar transactions.
     – Syntax rules: specifying the grammar for EDI dialogue.

Δ.Μ.Π.              Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 43
                     Expressing EDI messages

• EDI can be expressed using OEM [PAPAKONSTANTINOU95].
• Each functional group is represented as a graph:
   – internal nodes are complex values (e.g., transaction sets).
   – leaf nodes are atomic values of data elements.
   – edges represent semantic relationships and are labeled for naming
• An example
     <RFQ, REQUEST, “912-111”, “03-01-1999”, “{524-32, Terrycloth,
     1000, yd} {524-31, Linencloth, 2000, yd}, “FOB port of call”, “David
     Richmond”, “(201)222-4444”>

Δ.Μ.Π.                Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 44
  – distributed - autonomous and heterogeneous information
    sources, web databases, electronic catalogues, directories,
    middleware, servers, etc.
  – CSCW, collaborative work, interoperability, intelligent
    agents, workflows, e-mail
  – Intellectual Property Rights (IPR), electronic copyright,
  – Consumer Protection --- Linguistic and Cultural Issues
  – Regulation for: Security, Content, Cross-Border
Δ.Μ.Π.             Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 45
                                     Data sources

• E-Commerce involves massive data transfer among systems.
• This data is stored, in an electronic form, in data sources.
• There are several ways to classify the different types of data sources
  that might participate in the provision of data in E-Commerce:
         – Structure of the information source:
             • Fully structured data, e.g. databases
             • Semi-structured data, e.g, HTML files, source code files
             • Unstructured data, e.g. books in electronic form
         – Basic operations provided for each source:
             • Query facility:
                        fetch all items x where P(x)
             • Similarity-based retrieval:
                        fetch items x that are similar to y
             • Classification:
                        classify x near similar items

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                                 Structured data

• A database is a collection of data items, whose structure is
  defined by a schema (e.g., a relational schema).
• A Database Management System (DBMS) is a generic
  system, which supports the construction and access of a
  database; in particular:
         – sets up a scalable implementation
         – provides a data model (e.g., a relational data model) for defining
           the schema of a database
         – provides a basic set of operations for accessing and updating the
           database (e.g., relational algebra).
         – offers a variety of other services, such as concurrency control and
           error recovery.

Δ.Μ.Π.                    Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 47
                             Semi-structured data

• Here data have some structure, for example,

         – HTML/DHTML/XML files -- consist of text interleaved with
           HTML formatting commands
         – Literature files -- have a syntax for references, but the “atoms” of
           that syntax, such as paper titles, are text
         – Source code files -- based on the syntax of some programming
         – Electronic Data Interchange transmission -- based on standards.

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                E-catalogs --- Definition
• Any GUI, typically a Web page, that
          • online shopping, ordering and payment
   – A gateway to a gigital version of the
     business itself (more than a list of
   – Presents a new medium with new
 Δ.Μ.Π.             Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 49
                E-catalogs -- TYPES

• Stand-alone
  – Independent Web site, primarily for online retailing (e.g.,
• E-mall
  – Collection of catalogs for different merchants                      (e.g.,
    Internet shopping network)
• Embedded
  – Part of a large corporate web site
  – Primarily for non-retail (e.g., marketing, customer support)
  – Corporations using it include HP, Bank of America, etc.

  Δ.Μ.Π.            Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 50
           E-catalogs vs. Traditional catalogs
• Interactivity
  – Allow two-way communication channel between Business and
    Consumer in real time
  – Allow for the development of new and closer relationships
    between Business and Consumer
• Dynamic Updating Capabilities
  – quickly adapt to market conditions by adapting prices,
    repackaging, re-channeling, etc.
• Global Presence
  – SMEs can enter the global E-marketplace transcending
    traditional limitations

  Δ.Μ.Π.            Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 51
            E-catalogs -- Functional Features
• Content
   – SCOPE: products, services, pricing info, detailed descriptions, links to other
      resources, etc.
• Presentation
   – LAYOUT: spatial arrangement of the catalog and MM use
   – UI and HCI (Human Computer Interaction)
• Back-end Processing
   – Level of Integration (with Company’s databases and legacy systems, with
      financial institutions) and Interoperability
• Usage Tracking
   – Data Warehousing and Data Mining
• Computational Services
   – Scalability and Efficiency
   Δ.Μ.Π.                 Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 52
                        Architecture for Data Integration

•   Applications:
     – Inf. brokers
     – Neg. brokers
•   Architecture:
     – Controller
     – WfMS
     – CoopWARE
•   Infrastructure:
     – EDI
     – HTTP
     – VAN
•   Data mgmt:
     – DBMS                                                          Communication:
     – HTML                                                                 TCP/IP
     – flat files                                                       UNIX sockets

       Δ.Μ.Π.         Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 53
           BUSINESS MODELS -- Current State

• Most EC Business today are
         – An online version of traditional models
         – An extension of physical businesses that are
           able to reduce cost and improve customer
         – follow a vertical and rigid supply chain

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          BUSINESS MODELS -- Emerging

• Virtual Companies and markets
   – a consortium of companies build on each others’
     businesses to exploit opportunities
• Open buyer centric markets
   – comparison shopping
• Coalition and outsourcing
   – e.g. in REAL ESTATE: brokers, banks, escrow
     (εγγπεηέο) , lawyers (for title inspection)
• Supply chain ---- SUPPLY WEB
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Δ.Μ.Π.          Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 56

VIRTUAL STOREFRONT: sells goods, services on-
  line (Amazon, Virtual Vineyards, etc.)

  concentrates information from several providers
  InsureMarket, DealerNet, etc.)

• INFORMATION BROKER: provides product,
  pricing, availability information Auto-by-Tel,
  PartNet, etc)
Δ.Μ.Π.         Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 57

 • TRANSACTION BROKER: buyers view rates,
   terms from various sources (E*Trade, Ameritrade)

   setting, products, prices, change in response to
   demand (, OnSale, etc.)

 • REVERSE AUCTION: buyer sets price, submits
   to multiple sellers (

Δ.Μ.Π.         Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 58

   download software, other digital products
   (SonicNet, Build-a-Card, etc.)

 • CONTENT PROVIDER: creates revenue through
   providing client for a fee, and advertising Tripod,
   Wall Street Journal, etc.)

   service, support for hardware, software products
   CyberMedia, Tune Up, etc.)

Δ.Μ.Π.          Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 59

  large servers for Web sites of fee-paying

  using Web for electronic funds transfers,
  credit , smart & debit cards
Δ.Μ.Π.          Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 60
             Electronic Commerce Servers

• ICAT: on-line catalog shopping, order placement

• NET.COMMERCE: merchant server supporting
  Secure Electronic Transactions protocol (IBM)

• MerchantXpert:: search tools, order management,
  tax, payment, logistics modules (Netscape)

• Microsoft - Commerce Server 2000

Δ.Μ.Π.        Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 61
              Electronic Commerce Services

  authentication, order & payment processing, tax,
  multi-language customer service (Open Market)

  orders, inventory, customer service, payments

 Δ.Μ.Π.          Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 62
                     Supply-Chain Management

                MARKETING                          PRODUCTION
                 & SALES                            PLANNING



               ACCOUNTING &                                       INVENTORY

                SHIPPING &                       PRODUCTION &
               DISTRIBUTION                     MANUFACTURING

Δ.Μ.Π.                 Ι. Βαζηιείνπ --- Electronic Commerce     Δηζαγωγή --- 63
           Interoperable Commerce
   – All suffer from one or more of the following limitations:
     too expensive, too dumb, a private language between 2 partners, a
     formatting language
• Need an OPEN framework for Electronic Commerce
   – Standards is one approach - others include:
     negotiation protocols, mappings from one to another
• Need to have a common means to EXCHANGE information
  between applications required to support EC process flow and
  fully utilize such components as Databases, EDI, Browsers,
  Agents, Catalogs, etc...
   – Users need to be able to search for products using catalogs from multiple

  Δ.Μ.Π.                Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 64
                  Requirements for Interoperable Catalogs
                       [Commerce Net Report 1998]

• Community Management
   – enable and control access to the procurement system with authorizations
• Content Management
   – enable buyers to find desired items from a very broad and diverse set
   – create «shopping carts» compatible with general ledger practices
   – enable procurement officials to review the product ino for compliance
• Requisition Management (approval of «shopping carts» )
• Order and Document Management
   – convert the «shopping cart» to an order which is transmitted electronically the
     the right vendors and reconcilliation of accounts
• Management Reporting
   – meet reporting needs by end users, professional buyers, supplier personnel
    Δ.Μ.Π.                 Ι. Βαζηιείνπ --- Electronic Commerce   Δηζαγωγή --- 65

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