Basic Technology for Electronic Commerce 

Fan FanEmail address: ffan95@tom.com

 GUANGXI UNIVERSITY BUSINESS SCHOOL

2005

Lecture Outline

Learning Objectives

Introduction

1. Technological system for e-commerce2. Internet and network3. Electronic data interchange 4. Electronic commerce hardware and software5. Security Technology in Electronic Commerce

Conclusion

Learning Objectives

To understand the elements of technological system that relate to e-commerce

To describe the architecture of network and Internet that facilitate e-commerce

To explain the concept of EDI and how it works

To explore the kinds of e-commerce software

To identify security technology in e-commerce

Introduction

E-Commerce today

Definition of e-commerce in three ways

So, instead of using mail, telephone or fax to send

catalogues, order forms, notes confirm of receipt, e-

commerce uses electronic means of communication.

The purpose:

Providing a comprehensive descriptions and ideas of basic technology for electronic commerce. We begin by technological system for e-commerce, and then to Internet and network, electronic data interchange, electronic commerce hardware and software and finally, to security technology in electronic commerce. 

I. Technological System for E-Commerce

1.1 Structure of E-Commerce

Application

Infrastructure services Messages Multimedia Network

Other two aspects

(Figure 1)

1.2 E-Technology Architecture

E-application rules

E-application distribution/ integration

E-data E-networks

(Figure 2)

1.3 Technologies Associated with E-Commerce

A web browser  

Internet videoconferencing .  E-mail

Internet phone A discussion list or newsgroup

A web page and a website

II. Internet and Network

Internet

Network

Computer networks and the Internet, which connect computer networks around the world to each other, from the basic technology structure that underlies all electronic commerce.

2.1 Internet Protocols  ARPANET and Network Control Protocol (NCP).

--Should not require any internal change --Retransmitted from their source network.--Do not retain information --No global control

 2.2 TCP/IP

Transmission Control Protocol (TCP) and Internet Protocol (IP).

The TCP control the disassembly of a message or a file into packets before it is transmitted over the Internet.

The IP specifies the addressing details for each packet, labeling each with the packet’s origination and destination address.

 2.3 World Wide Web  The part of the Internet known as the World Wide Web, or more simply, the Web, is a subset of the computers on the Internet that are connected to each other in a specific way that makes them and their contents easily accessible to each other.

 2.4 Intranets and Extranets Intranets are an excellent way to distribute internal corporate information.

Extranets are networks that connect companies with suppliers, business partners, or other authorized users.

Figure 3. Intranet and Logistics management

2.5 Internet Connection Options

Internet access providers (IAP or ISPs)

--Telephone--Broadband--Leased line--Wireless --Bluetooth--Wireless Ethernet (Wi-Fi)

 2.6 Seven Layers

1. Physical layer 2. Data link layer3. Network layer4. Transport layer 5. Session layer6. Presentation layer7. Application layer

 2.7 LAN, WAN and Network A network of computers that are located closed together in the same building-is called a local area network, or LAN.

Networks of computer that are connected over greater distance are called wide area networks, or WANs.

Figure 4. LAN, WAN and Internet

2.8 Public and Private Networks A public network is any computer network or telecommunications network that is available to the public.  

A private network is a private, leased-line connection between two companies that physically connects their intranets to one another.

2.9 Virtual Private Networks (VPN) A virtual private network (VPN) is an extranet that uses public networks and their protocols to send sensitive data to partners, customers, suppliers and employees using a system called IP tunneling or encapsulation.

   III. Electronic Data Interchange Electronic data interchange (EDI) is the collection of standards for exchanging data between computers in separate organization.

3.1 Broader EDI Standards

Commonly used ASCX12 transaction sets

Commonly used UN/EDIFACT transaction sets

3.2 How EDI Works

B2B, B2C   Figure 5. EDI and Purchase process 3.3 Value-Added-Networks Direct connection or indirect connection.

Definition of VAN

Advantages and Disadvantages of VAN  Figure 6. Indirect connection EDI Through a VAN

 3.4 EDI on the Internet Reasons on the Internet

Open Architecture of the Internet and benefits.

IV. E - Commerce Hardware and Software  4.1 Web Server Hardware Companies use a wide variety of computer brands, types and sizes to host electronic commerce operations.  4.1.1 Server Computers Web server computers generally have more memory, larger (and faster) hard disk drives, and faster processors than the typical desktop or notebook PCs.

4.1.2 Web Hosting Choices Self-hosting  Shared hosting

Dedicated hosting

 4.2 Software for Web Servers Some Web server software can run on only one computer operating system, while some can run on several operating systems.  

4.2.1 Operating Systems for Web servers 4.2.2 Web server Software

4.3 Functions of Electronic Commerce Software 4.3.1 Basic functions Catalog Display  Shopping Cart  Transaction Processing  4.3.2 Advanced Functions

Reasons Advanced Functions cover the middleware, application integration and Databases and integration with ERP Systems.

 V. Security Technology in Electronic Commerce 5.1 Internet Security Classifications and Policy Classifications: SecurityIntegrityNecessary

A security policy requirements: Six points 

5. 2 Encryption and Decryption

Encryption is the coding of information by using a mathematically based program and a secret key to produce a string of characters that is unintelligible.

Figure 7. Encryption, Decryption and Purchase Process

 5.3 Digital Certificates A digital certificate is an attachment to an e-mail message or a program embedded in a Web page that verifies that the sender or We site is who or what it claims to be.    A digital certificate includes six main elements.

5.4 Firewalls Firewalls are computer and software combination that is installed at the Internet entry point of networked system.

Functions

Firewall computers have three characteristics: Figure 8. Firewall and Internet

Conclusion  Electronic commerce technologies and strategies are key factors for today’s e-commerce, as the Internet continues to become more popular, electronic commerce techniques will evolve to meet the challenges.  References

The End