University of Toronto School of Continuing Studies A ... · “Thinking Beyond the Box” Case Study Series: nCisco Systems Inc. lWhat is a router? What is a switch? lFrom what we

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


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


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


LogicComponents


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


n Financial and Information Services Scenarios (B2C)

l Account information retrieval

l Site personalization

l Transaction management


n Corporate Purchasing and Procurement (B2B)

Reference: MSDN Training - Understanding E-Commerce Architecture with Microsoft® Technologies


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n Value Chain Integration (B2B)


Page 96, E-commerce – Business. Technology. Society. By Kenneth C. Laudon and Carol Guercio Traver


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?

Documents

University of Toronto School of Continuing Studies A ... · “Thinking Beyond the Box” Case Study Series: nCisco Systems Inc. lWhat is a router? What is a switch? lFrom what we