1. Conceptual Design of an E- commerce System Min Ding Smeal College of Business Administration Pennsylvania State University

2. Today’s Topics Major Design Issues to be considered for an E-Com site  Security  Content  Transaction  Payment System  Architecture and Available Tools

3. Security Issues in E-Commerce  System security  Communication security  Data security  Authentication and authorization

4. Maintain Security Online  Security Socket Layer (SSL)  Secure HTTP (S-HTTP) SSL and S-HTTP could be implemented together (not mutually exclusive)  SHEN (similar to S-HTTP, avoid US export restrictions)

5. Creating and Managing Content Content Formats  Text  Lists  Images  Forms  Tables  Frames  Image Maps  Cascading Style Sheets (CSS)  …

6. Creating and Managing Content Tools Available  Desktop Publishing Tools (WYSIWYG)  Database Connectors (used to define a language for writing page templates)  Authoring Environments (complete package)

7. 3 Steps in Personalizing E-Commerce Site  Authentication and identity  User Profiles  User supplied information and browsing information  Storing profiles in browser cookie, database  Custom Content  Personal newspaper, custom catalog

8. Transaction Processing Four essential characteristics (ACID)  Atomicity  Consistency  Isolation  Durability

9. Types of money  Token  e.g.,  Notational  e.g.,  Most e-commerce systems today use notational money.

10. E-Commerce Payment Systems  Token Based Payment Systems  Notational Based Payment Systems

11. Electronic Cash  Trying to capture the characteristics of cash:  How does it work:  Deposit money with an e-cash provider;  Download digitally signed e-cash to your computer;  When you purchase, the e-cash will be upload to the merchant;

12. Electronic Cash (continued)  An example:  Digicash  sold to eCash in 1999  Potential Issues:  Double spending (easy to make copies of the e-cash)

13. Smart Cards  Cards with a chip  Example:  PSU ID card (online?)  VISA cash (accessed via a terminal on the side of your computer)

14. Electronic Check  Works exactly like regular checks;  Need a third party account server for each transaction;  Example:  NetCheque

15. Online Credit Card Payment  Secure Transmission  Secure HTTP and Secure Sockets Layer (SSL)  Encryption and authentication  Secure Electronic Transaction (SET)  Developed jointly by VISA and MasterCard

16. Handling Micropayments  Micropayments are small payments (relatively speaking)  e.g., 50 cents  Technical Solution – Software Systems:  Millicent (via a broker)  NetBill  Business Solution – Aggregation  Taxi meter approach  Parking meter approach

17. E-Commerce System Architecture  Content Server  Transaction Server  Secure link between content server and transaction server

18. Benefits of Modular Architecture  A small business (e.g., us) could develop the content server (relatively easier) and point to a transaction server to handle the transaction on a fee basis;  Easy to scale, upgrade;  Efficient (multiple divisions of a firm could use one transaction server).

19. E-commerce Application Tools  License Model:  BroadVision (major player)  Vignette  Open Market’s LiveCommerce  iCat’s Electronic Commerce Suite  Open Source and Free License Model  OpenSales  ArsDigita

20. Things to remember …  How security is handled;  Payment systems used in E-commerce;  Software needed to setup an e- commerce site is either free or could be bought.