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University of Toronto School of Continuing Studies
A Conceptual Overview of E-Business Technologies
Day 1 - Conceptual Overview of E-Business Technologies
n Business Overview of an E-Business System
l What is E-Commerce and why?
l Different Form of Internet Services
l Type of E-Commerce: B2B vs. B2C vs. C2C
l Four B2B and B2C E-Commerce Scenarios
l Considerations for Becoming an E-Business
n Technical Overview of an E-Business System
l Typical Technical Challenges Facing E-Commerce Sites
l Around the four B2B and B2C E-Commerce Scenarios
Business Overview of an E-Business System
What is E-Commerce?
n A working definition of E-Commerce:
l The conducting of business activities using the Internet platform and in particular the Web
l The Web runs over the Internet platform and uses the hypertext transfer protocol
Reference: e-Business and e-Commerce Infrastructure
Why E-Commerce?
n Fundamentally, electronic commerce incorporates one or more of the following attributes:
l Doing business online
l Communicating with customers and business partners over the Internet
l Supporting an organization's digital system.
Reference: MSDN Training - Understanding E-Commerce Architecture with Microsoft® Technologies
Different Form of Internet Services
n E-Tailing – Electronic Retailing e.g. Chapters Indigo
n E-Auction – Online Merchandise Bidding e.g. E-Bay
n E-Logistics – International Checkout / Logistics Service e.g. Canada Post
n E-Procurement – Electronic Procurement e.g. Grand & Toy
n E-Support – Online Post-Sell Support Centre
l e.g. Microsoft, HP, Canada Post
n E-Catalogue – Online catalogue with detailed information about products sold e.g. Honda, BMW, IKEA
n E-Training – Online Learning Center with individual performance tracking e.g. Isopia / SUN Microsystems
n E-Recruiting – Online Human Resource Center
l e.g. Workopolis, Monster.ca
Type of E-Commerce
n Business-to-Consumer (B2C) E-Commerce
n Business-to-Business (B2B) E-Commerce
n Consumer-to-Consumer (C2C) E-Commerce
Type of E-Commerce (cont.)
n Business-to-Consumer (B2C) E-Commerce
l Allows the general public to do business with your company
l Involves shopping activities like promotion, ordering, payment, after-sales support
n Examples of B2C sites
l Portal – Yahoo, MSN, AOL
l E-Tailer – Amazon, Indigo, FutureShop, Bay, Sears
l Content Provider – Globe&Mail, Canada.com
l Transaction Broker – BMO InvestorLine, TD EasyWeb
l Auction – eBay
Type of E-Commerce (cont.)
n Business-to-Business (B2B) E-Commerce
l Allows your partners to do business with your company
l Involves procurement activities like procuring supplies, raw materials and manufacturing equipment
n Examples of B2B sites
l E-Distributor – Staples, Grand & Toy
l E-Procurement – CommerceOne, Ariba, Click2Procure
l Exchanges – GEPolymerland.com, ChemConnect.com
l Private Industrial Exchange – Wart-Mart, FundSERV
l Industry-wide network – UCCnet.org, WorldWideRetailExchange.org
Type of E-Commerce (cont.)
n Consumer-to-Consumer (C2C) E-Commerce
l Allows consumers to sell goods to any consumers
l Involves postings of information about selling goods and how to obtain the selling goods
n Examples of C2C sites
l eBay.com
l Half.com
l Craigslist.com
E-Commerce Scenarios
n Business to Customer (B2C)
l Direct Marketing, Selling, and Service
l Financial and Information Services
n Business to Business (B2B)
l Corporate Purchasing and Procurement
l Value Chain Integration
B2C - Direct Marketing, Selling, and Service
n Personalized Content
n Integrated Sales Processing
n Automated Customer Service Features
n Marketing through Web Advertising
B2C - Financial and Information Services
n Online Banking
n Online Billing
n Secure Information Distribution
B2B - E-Procurement
n E-Procurement activities may include:
l Sourcing office supplies
l Creating contracts to hire vendors
l Enforcing purchase approval and policies
l Updating and centralization of supplier catalog
l Transferring of purchase orders
l Ordering tracking and fulfillment
B2B - Value Chain Integration
n E-Commerce Industry and Firm Value Chain Integration:
Page 98-99, E-commerce – Business. Technology. Society. By Kenneth C. Laudon and Carol Guercio Traver
Industry Value Chain
Firm Value Chain
Benefits of E-Commerce
Centralize information access (reduce information costs and raise quality)
Information Density
Allow personalized information and customized products and services
Personalization / Customization
Work interactively with usersInteractivityMultimedia messages: video, audio and textRichnessOne set of standard used across the globeOne StandardReachable across national boundariesGlobal ReachAccessible everywhereUbiquity
n Unique Features of E-Commerce Technology
Benefits of E-Commerce (cont.)
n Enabling Businesses
l Cheaper cost to reach a broader market
l Increased efficiency and accuracy
l Reduced labor costs
l Better customer service and support
l Instant communication with consumers and trading partners
l Improved profit margins through automated supply-chain management
l Better forecasting of customer needs for goods and services
Benefits of E-Commerce (cont.)
n Advantages and Disadvantages in Web Advertising
l AdvantagesWeb is an interactive mediumWeb experience can be tailored to each user Web is a participatory tool
l DisadvantagesLimited capability due to bandwidth constraintsCPM (Cost per Thousand [1000 = M in Latin]) –traditional advertising and measurement model becomes not quite applicable
CPC – Cost per Click, CPA – Cost per Action
Considerations for Becoming an E-Business
n Consumer Perspectives
n Operational Perspectives
Considerations for Becoming an E-Business (cont.)
n Consumer Aspects: 4Cs
l Cost, Choice, Convenience, Customization
Considerations for Becoming an E-Business (cont.)
n Operational Aspects
l Cost
l Security
l Leverage Existing Systems
l Interoperability
Changing E-Commerce Trend
Everybody knows what Internet can doFirst mover advantages
Mixed “clicks and bricks” strategiesPure online strategies
Big middle-man to aggregate content, products, services
Simple source of content, products, services
Large traditional firmsEntrepreneurial
Stronger regulation and governance (like privacy, legislation)
Ungoverned
Traditional financingVenture capital financing
Sustainable earnings and profits emphasis
Revenue growth emphasis
Business-drivenTechnology-driven
After Year 2000…Before Year 2000…
Technical Overview of an E-Business System
Technical Environment of an E-Business System
n Logical Components
l Storefront Portion- Programmatic Components of an E-Commerce site- Site-Map of an E-Commerce site
l BackOffice Portion- BackOffice Components of a E-Commerce site
n E-Commerce System Architecture - Logical
n E-Commerce System Architecture – Physical
n Typical Three-Tier Application Architecture for Internet Applications
Programmatic Components of an E-Commerce site
n Product Catalogue Component
n Merchandising Component
n Product Configuration Component
n Shopping Basket Component
n Tax Calculator Component
n Shipping Charges Calculator Component
n Payment System Component
Site-Map of an E-Commerce site
n Product Catalogue
l Product Technical Details
l Product Marketing Information
n Order Processing
l Order Placement
l Price Quotation
l Item Configuration
l Order Tracking
n Customer Service
l Technical Support
l FAQ Pages
l Problem Solvers
n Administration
l Invoicing
l Billing History
l Account Summary
l Unresolved Issues
n Communication
l Event
l Workshop/ Training
l Promotion/ Programs
l Press Release
BackOffice Components of an E-Commerce site
n Supply Chain Management (SCM)l Logistics / Distribution Planning / Demand Planning
and forecasting / Warehouse Managementn Enterprise Management Planning (ERP)l Finance / Procurement / Human Resources / Product
Management / Research and Development / Inventory Control
n Customer Relation Management (CRM)l Sales Channel Management / Marketing Automation /
Customer Database / Personalizationn Database Servicesl Decision Support System / Data Warehouse / Report
Services / Business Intelligence
E-Business System Architecture - Logical
StoreFront System
Product CatalogueComponent
Customers
Overview of E-Commerce System Architecture
MerchandisingComponent
Product ConfigurationComponent
Shopping BasketComponent
Tax CalculatorComponent
Shipping ChargesCalculator Component
Payment SystemComponent
BackOffice Systems
Order Processing /Fulfillment Management
Inventory ControlManagement
Warehouse/ LogisticsManagement
Customer RelationManagement
Accounting System
Database Services
Decision Support System
Data Feeds fromVendors
Credit CardCompanies
Internet CreditCard Broker
Inte
rnet
- a
s a
med
ium
E-Business System Architecture – Physical
Internet
Web Serverwith Business
LogicComponents
A Typical E-Commerce System Architecture
SQL Databaseon a high-
performanceRAID system
SecondaryNode
DatabaseServer
ProcessInter-
connect
Router/ LoadBalancer
Firewall
Web Serverwith Business
LogicComponents
Web Serverwith Business
LogicComponents
A number of Web serv ersf orming a Web Farm
Only databasetraffic (between Webservers and Database
servers) canpenetrate the firewall
Only HTTP trafficcan penetrate
this router
Primary Node
Secured Network
Unsecured Networkor De-militarized Zone (DMZ)
Database Cluster
Typical Internet Application Architecture
CorporateClient Presentation
Services
Data Services
ApplicationServices
Database Server
Data
Application Server
Web BrowserBased
ApplicationsUser Interface
Middleware /ApplicationServices
BusinessRules / Logic
DatabaseManagement
SystemData Storage
What Do These Technical Matters Mean?
Typical Technical Challenges Facing:
n Direct Marketing, Selling, and Service Scenarios (B2C)
l Catalog searching and indexing
l Managing the shopping basket
l Placing orders
Typical Technical Challenges Facing:
n Financial and Information Services Scenarios (B2C)
l Account information retrieval
l Site personalization
l Transaction management
Typical Technical Challenges Facing:
n Corporate Purchasing and Procurement (B2B)
Reference: MSDN Training - Understanding E-Commerce Architecture with Microsoft® Technologies
Typical Technical Challenges Facing:
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n Value Chain Integration (B2B)
Typical Technical Challenges Facing:
Page 96, E-commerce – Business. Technology. Society. By Kenneth C. Laudon and Carol Guercio Traver
Typical Technical Challenges Facing:
n Technical Challenges facing any B2B systems:
l Secure login and password authentication
l Secure exchange of business information between trading partners
l Integration with back-end financial and/or inventory-management systems
l Rapid and actual catalog management
l Price calculation depending on classes of accounts, purchase history, credit, territory, and so on
Similarities and Differences between B2B and B2C E-Commerce Sites
n Similarities between B2C and B2B systems
l Browse, basket, user identification, feedback, customization
n Differences between B2C and B2B systems
l Trust or contractual relationship
Considerations of the differences
n Between B2C and B2B systems
l Integrating E-Commerce Pipeline Workflow
l Extending into Other Organizations
l The Mechanics of Calling the Supplier
Technical Issues related to all E-Commerce Sites
n Integrating a solution with existing systems
n Security issues
l Authentication
l Authorization and access control
l Confidentiality
l Levels of Security
l Data Integrity
l Non-repudiation
l Auditing
Solutions to Internet Security
n Internet security technologies to resolve security and auditing issues:
l Encryption
l Digital signing
l Public Key Infrastructure (PKI)
l Secure log-in
Decisions for each E-Commerce implementation
n How can the systems communicate?
l Through VPN, PPTP, with RPC or DCOM calls in between pages?
n What sorts of data need to be transmitted?
l Follow the standard MS or IBM e-Commerce pipeline
n What data formats do the supplier systems expect?
l In HTML or XML
n What authentication mechanisms are needed?
l NTLM, CHAP, Digital signatures
n How can sensitive data be protected in transit?
l SSL, or IPSec
How Would This Course Help?
n Provide all the fundamentals and conceptual overview around each individual technology element
Information Technology Platform
E-Commerce and E-Business (Day 1)
Software Solutions (Day 5-7)Web Language (HTML and XML)
Search EnginesSoftware Agents
Multimedia and WebcastingPackage Solutions for E-Business
Networking Infrstructure (Day 2 / 3)Networking FundamentalsCommunication Protocols
Network SecurityEncryption and Digital Payment
Server Platforms (Day 4)
Home Readings
n E-Commerce - Business, Technology, Society
l Chapter 1, 2
l Case: Cisco Systems Inc. - Managing Corporate Growth Using an Intranet
l Preview for Next Class: Chapter 3
Course PowerPoint Download
n http://individual.utoronto.ca/andyli/scs0086
“Thinking Beyond the Box” Case Study Series:
n Cisco Systems Inc.
l What is a router? What is a switch?
l From what we learn about CEC – Cisco Employee Connection, what makes a “good” corporate intranet and what role does Information Technology play in executing Cisco corporate strategy?
l What are the critical management issues surrounding intranets? What are the true “costs” and “benefits” of an intranet?
l How would an Intranet Employee Portal enhance your company’s productivity and efficiency?