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E Commerce & Transaction Processing Systems
Inam Ul-HaqLecturer in Computer ScienceUniversity of Education Okara [email protected], [email protected]
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Learning Objectives1. Identify several Advantages of e-commerce.2. Identify some of the major Challenges companies must overcome
to succeed in e-commerce.3. Identify several e-commerce Applications.4. Outline the key components of Technology Infrastructure that
must be in place for e-commerce to succeed.5. Discuss the key features of the electronic Payments Systems
needed to support e-commerce.6. Identify the major Issues that represent significant Threats to the
continued growth of e-commerce.7. Identify the basic activities and business Objectives common to all
transaction processing systems.8. Discuss the importance of business resumption planning and
Disaster Recovery for key transaction processing systems.9. Define the term ERP System and discuss the advantages and
disadvantages associated with the implementation of such a system.
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E-Commerce (Examples)
• Business-to-Consumer• Example: Bookstore selling books to customers (amazon.com)• Annual online spending in 2002 was $85 billion
• Business-to-Business• Example: A data processing company handling data services for a
company (adp.com)• $5.3 trillion impact by 2005
• Consumer-to-Consumer• Example: A customer selling goods to another customer (e-bay.com)
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Why Use E-Commerce?
• Cut transaction costs• Speed flow of goods and information• Improve customer service• Coordinate manufacturers, suppliers, and customers• Improved order handling and shipment• Various Reports (customers, suppliers, employees, sales, delivery,
payments, taxes, discounts etc.)
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Supply Chain Management
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Value Chains in E-Commerce
• Conversion to e-commerce supply chain management provides businesses with an opportunity to:
• increase revenues or decrease costs by eliminating time-consuming and labor-intensive steps throughout the order and delivery process
• improve customer satisfaction by enabling customers to view detailed information about delivery dates and order status
• reduce inventory including raw materials, safety stocks, and finished goods
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Value Chains in E-Commerce
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Less Labor, Less time, Increased Revenue
Product and Information Flow for (HP Printers Ordered Over the Web)
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E-Commerce Applications
• Retail and Wholesale: www.ebay.com/
• Manufacturing: www.covisint.com/
• Marketing: www.doubleclick.com
• Investment and Finance: www.garanti.com.tr/
• Auctions: www.tradera.com
• Price comparison: www.pricerunner.se
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Model of an Electronic Exchange
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Web Sites Useful to Investors
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Popular Stock Tracker Web Sites
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Quicken.com: organizes all your financial information, together in one placeFool.com: provides financial solutions for investors, personal finance
Technology, Infrastructure, and Development
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Key E-Commerce Technical Components
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Hardware
• The amount of storage capacity and computing power required of the Web server depends primarily on two things:
• the software that must run on the server • the volume of e-commerce transactions that must be
processed
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Software (1)
• Web server software • Apache Server• Microsoft Internet Information Server
• Web site development tools• FrontPage, NetStudio
• Database management system• SQL Server• Oracle
• E-commerce software• Catalog software (e.g. catalog creator)• Product configuration software• Electronic shopping cart
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Catalog Management Software
• Combines product data formats into a standard format• Creates a central repository of product data• Catalog resides on a database• Amazon’s book, music catalog
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Catalog Management Software
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Product Configuration Software
• Allow buyers to build the products they want to buy• www.dell.com lets you choose parts of the computer
separately • Better customization, better sales
• E.g. Product Configurator
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Electronic Shopping Cart
• Track items selected for purchase• Let buyers modify their choices (add or delete items)• Let buyers “checkout” (begins a purchase transaction)• Wish list
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Electronic Shopping Cart
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Electronic Payment Systems
• Electronic cash• Money that is “computerized”• Used as cash in e-commerce transactions
• Electronic wallets• Holds credit card, e-cash, address information• Automatically handles checkout
• Credit, charge, debit, and smart cards(chip information)
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An Overview of Transaction Processing Systems
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Corporatedatabases
ofinternal
data
Databasesof
externaldata
Databasesof
validtransactions
Operational Databases
(CRM)
Transactionprocessingsystems
MIS
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Application databases
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App databasesEbay.com, photo.net uses OracleFacebook.com built over MySQL
Schematic View (Cont.)
TPS, MIS/DSS, and Special-Purpose Information Systems
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Traditional Transaction Processing Methods
• Batch processing – method of computerized processing in which business transactions are accumulated over a period of time and prepared for processing as a single unit
• On-line transaction processing (OLTP) - method of computerized processing in which each transaction is processed immediately and the affected records are updated
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Transaction Processing Activities
• Data collection: Capturing data necessary for the transaction• Data editing: Check validity and completeness• Data correction: Correct the wrong data• Data manipulation: Calculate, summarize • Data storage: Update transactions• Document production and reports: Create end results (paychecks)
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Data Processing Activities Common in Transaction Processing Systems
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Point-of-Sale Transaction System
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Systems that Support Order Processing
Order Processing System Purpose
Order entry Data for order
Sales configuration Ensure enough products
Shipment planning Which order from which location
Shipment execution Right products on time
Inventory control Reflect exact quantity
Invoicing and billing Generate customer invoice
Customer management Monitor customer contact
Routing and scheduling Best way to move products
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