1 Chapter 4: EC - Framework and components IT357 Electronic Commerce

27 June 2008IT Chapter 42 EC - Framework and components 1.An EC framework 2.Policy and regulatory issues in EC 3.EC requirements and services 4.Components of EC

27 June 2008IT Chapter 43 An EC framework

27 June 2008IT Chapter 44 Cont’d: An EC framework The Information Super highway A mixture of high speed networks –Land based telephone networks –Air based wireless –Modem based PC –Satellite based systems –Internet The players: information transport providers –Telecom companies –Cable TV companies –Satellite networks Includes –Hardware and software tools that provide interfaces to the various networks –Customer premise equipment –TV set top boxes –Hubs, routers and digital switches

27 June 2008IT Chapter 45 Cont’d: An EC framework Multimedia content and network publishing WWW - The most prevalent architecture that enables network publishing. Uses HTML. Messaging and information distribution Information created and transferred across the networks consist of a variety of formats Middleware – a special messaging and information distribution agents that carry the contents across the network.

27 June 2008IT Chapter 46 Cont’d: An EC framework Business services infrastructure Includes processes for facilitating on-line business transactions –e.g. Visa's Secure Electronic Transaction (SET)

27 June 2008IT Chapter 47 Cont’d: An EC framework Other Key Support Layers Public Policy related to EC –Encompasses such issues as privacy, universal access and information pricing –Information traffic policy deals with Cost of accessing information Regulation to protect consumer from fraud na right to privacy Policing global information to detect information piracy and pornography Standards –Ensures compatibility in information publishing tools, user interfaces and transportation of information

27 June 2008IT Chapter 48 Components of EC EDI –“The interorganisational computer-to-computer exchange of structured information in a standard machine processable format” Intranet –internal corporate web server- a secure collection of websites belonging to a group Extranet –could involve two or more intranets that are linked together and accessible to each other's members and made possible through an agreement between the partners Digital Currency –electronic "digital cash" and stored-value "smart cards" Electronic catalogues –any graphical user interface (a WWW) that presents information on products and services offered by a commercial entity

27 June 2008IT Chapter 49 Cont’d: Components of EC EDI EDI messages are created and delivered through four steps –Mapping Process of identifying the elements within the database needed to create an EDI message –Extraction Process of collecting the pre-identified data and placing them into a usable format Data is extracted from the database and restructured into a flat file Structure of the flat file is specified by the translation software –Translation From the flat file format actual EDI message is generated using a translation software The software arranges the data in the exact structure necessary to meet EDI requirements –Communication Actual transmission of the message Controlled by communication software that : –maintains a list of phone numbers of trading partners –performs automatic dialing and up/downloads –produces an activity log Each EDI message is enclosed in an envelope with: –Destination address –EDI transaction type as header –Error checking codes - check sum as trailer

27 June 2008IT Chapter 410 Cont’d: Components of EC EDI - Barriers to EDI Implementation Restricted to large companies due to high investment costs Smaller players squeezed out in favor of large ones. Inflexible standards used ( X12 and EDIFACT) Addition of new transaction types is tedious because it has to go through a standards committee before the translation software can be updated

27 June 2008IT Chapter 411 Cont’d: Components of EC Intranet Internal corporate web server Provides: – facilities –On-line publishing of corporate documents –Online searches and application distribution Extranet The facilities of the intranet can be extended to business partners through an extranet. Refers to an extended intranet. Involves two or more intranets that are linked together and accessible to each other’s members through an agreement.

27 June 2008IT Chapter 412 Cont’d: Components of EC Digital currency Intended to permit the users to move funds electronically within an environment. Involve “tokens” of value expressed in digital form Designed to function as their paper equivalents With the same attributes - anonymity and liquidity Characteristics: –Depends on cryptography for security –Requires loading from funds held within a financial system –Similar to transferring of cash to a smart card using an ATM machine. Classified as: –Electronic digital cash –Stored value “smart cards”.

27 June 2008IT Chapter 413 Cont’d: Components of EC Digital currency Electronic Cash Refers to money exchanged electronically E.g. Singapore’s NETS Stored value cards –Portable storage and retrieval of data –Components - microprocessors, non static RAM, ROM and EPROM –Mondex International - the world’s leading manufacturer of smart cards, a subsidiary of MasterCard –Octopus Card

27 June 2008IT Chapter 414 Cont’d: Components of EC Electronic Catalogues The earliest commercial applications designed for the web. A graphical user interface that presents information on products and services offered by a commercial entity. Supports on-line shopping, ordering and payment processing. Features –Interactivity –Dynamic updating capability –“Hypertextuality” –Global presence Functionalities –Content –Presentation –Back-end processing –Computational services –Usage tracking Types –Stand Alone e.g. amazon.com –Electronic Mall e.g. asia1.com.sg –Embeddede.g. hp.com