Introduction to eCommerce Technology

Objectives of the second half of Autumn Term

Better understand Friedman’s argument! To place eCommerce within the context of

eBusiness and define the differences To introduce the key information

technologies that are used in eCommerce and their relationship to one another

Set the scene for the Summer term!

Objective of the Course

When you have completed this part of the course, you will: Have a developing understanding of the

technical infrastructure required for eCommerce

Have hands-on experience using Access database (using open courseware material)

What is eCommerce

In your Buzz Group: Define eCommerce Define bBusiness What is the difference? Write up in the ‘ning’ forums!

What is E-Commerce?Business Perspective

Commerce is all about buying and selling.

Everything has two prices:

The difference is either ‘profit’ or ‘loss’

Buy Low

Sell High

£ Markup £

What is eCommerce?

Initial Definition (c.1998): eCommerce - The application of information technologies to enable commercial transactions between two parties.

The Internet

Why has eCommerce become so important?

eCommerce has evolved to mean more than just buying and selling. Info sharing (Web catalogues, ads,

communities) Ordering (email, eforms) Payment (traditional, credit cards, EDI, digital

cash) Fulfillment (Web-site, email, fax, phone) Service & support (Web notes, FAQs, bulletin

boards, e-mail)

Why has eCommerce become so important?

The Driving Force The Internet Economy To reach 50,000,000 users

Radio took 38 years Computers took over 16 years TV took 13 years The Internet took 4 years!

Over 61% of (15.2M) UK homes are Internet connected, compard to 54% in 2006

Sources: http://news.bbc.co.uk/1/hi/technology/6966632.stm

National Statistics http://www.statistics.gov.uk/statbase/Product.asp?vlnk=6645

Why has eCommerce become so important?

The Driving Force T Int rn t I onomIhe e e c The pattern!

The Internet Economy Business Growth

297,000 small businesses(30% of total)

77,000 medium businesses(50% of tota l)

6,000 large businesses(100% of total)

100

1996 20001998

80

60

40

20

Businesses(thousands)

300

Companies connecting

Source:Forrester

The Internet Economy Global Forecast

£1.6T

£500

£1,000

£1,500

0

Sales (billions)

1998 1999 2000 2001 2002 2003

£40 £90 £190 £480 £1,000 £1,600Source: Forrester

Hyper-growth begins

£75B

1998 – 111M users2000 – 320M users2005 – 720M users

Commerce threshold

1998 1999 2000 2001 2002 2003 2004 2005

U.S. U.S.

Canada Canada

UK UK

Japan Japan

France France

Italy Italy

The Internet Economy: The Race is On

Hyper-growth begins

GermanyGermany

Source: Forrester

By 2003: Over half of allInternet transactions aremade by non-PC devices.

eCommerce & eBusiness

eBusiness is defined as the process of using electronic technology to do business

eCommerce can be defined as a

subset of eBusiness, and is the subset of eBusiness that focuses on commerce

The Emergence of eBusiness

EnterpriseResourcePlanning

SupplyChain

Management

CustomerRelationshipManagement

SellingChain

Management

ProcurementManagement

KnowledgeManagement

SuppliersServices

CustomersDistributersCustomers

Partners

GovernmentAgentsPartners

So Where’sthe eCommerce?

So, what is our definition of eCommerce?

eCommerce: The application of information technologies to enable business activity between two or more parties.

The Internet

The Internet

B2C, B2B, C2CB2C, B2B, C2C

Whats all this “E-”

“E-” or “e-” has been added to almost everything

email eprocurement ecare egovernment elearning others …

Recently we have started to see the same with “M-” or “m-”.

M-Commerce

M-Commerce is E-Commerce over wireless communications and typically to smaller handheld devices

Mlearning – using a mobile device to access learning materials

The Benefits of eCommerce

Opens new markets Shortens business cycles Reduces processing/paperwork Extends reach beyond physical

outlets Permits customized

products/service

Limitations of eCommerce

Customer authentication Web-site navigation Web differentiation Integration of Internet with other

customer service channels (telephone, counter, kiosk, etc.)

What Is eCommerce?Technology Perspective

SQLHTTP

Servlets

HTMLServers

Applets

BrowsersTCP/IP

CGI

Cookies

POP

Database

JSPs

Java

MIMEDW/DM

SMTP

FTP

Authentication

EncryptionWireless PervasiveComputing

Smart Cards

XML

URL

e-Payment SSL

What is eCommerce?Technology Perspective

Mobile-Phone

PDA

Laptop

Desktop

WebApplication

Servers

Data and Transaction

Servers

EdgeServer

The Hardware

The Software

Introducing the One Minute Paper

On a card:

Write down: Write down:

1. The most important point of the lecture1. The most important point of the lecture

2. The least clear point of the class; 2. The least clear point of the class;

(you would like further explanation)(you would like further explanation)