Basic Technology for Electronic Commerce

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Basic Technology for Electronic Commerce 
Fan FanEmail address ffan95_at_tom.com GUANGXI
UNIVERSITY BUSINESS SCHOOL 2005
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Lecture Outline Learning ObjectivesIntroductio
n1. Technological system for e-commerce2.
Internet and network3. Electronic data
interchange 4. Electronic commerce hardware and
software5. Security Technology in Electronic
CommerceConclusion
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Learning ObjectivesTo understand the elements
of technological system that relate to
e-commerceTo describe the architecture of
network and Internet that facilitate
e-commerceTo explain the concept of EDI and how
it worksTo explore the kinds of e-commerce
softwareTo identify security technology in
e-commerce
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Introduction

• E-Commerce today
• Definition of e-commerce in three ways
• So, instead of using mail, telephone or fax to
  send
• catalogues, order forms, notes confirm of
  receipt, e-
• commerce uses electronic means of communication.

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The purpose Providing a comprehensive
descriptions and ideas of basic technology for
electronic commerce. We begin by technological
system for e-commerce, and then to Internet and
network, electronic data interchange, electronic
commerce hardware and software and finally, to
security technology in electronic commerce. 
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I. Technological System for
E-Commerce1.1 Structure of E-CommerceApplicati
onInfrastructure services Messages
Multimedia NetworkOther two
aspects(Figure 1)
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1.2 E-Technology Architecture

E-application rules E-application
distribution/ integration E-data E-networks
(Figure 2)
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1.3 Technologies Associated with E-CommerceA
web browser  Internet videoconferencing .
 E-mail Internet phone A discussion list or
newsgroup A web page and a website
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II. Internet and NetworkInternet Network
Computer networks and the Internet, which
connect computer networks around the world to
each other, from the basic technology structure
that underlies all electronic commerce.
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2.1 Internet Protocols  ARPANET and Network
Control Protocol (NCP). --Should not
require any internal change --Retransmitted
from their source network.--Do not retain
information --No global control
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 2.2 TCP/IPTransmission Control Protocol
(TCP) and Internet Protocol (IP). The TCP
control the disassembly of a message or a file
into packets before it is transmitted over the
Internet. The IP specifies the addressing
details for each packet, labeling each with the
packets origination and destination address.
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 2.3 World Wide Web  The part of the Internet
known as the World Wide Web, or more simply, the
Web, is a subset of the computers on the Internet
that are connected to each other in a specific
way that makes them and their contents easily
accessible to each other.
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 2.4 Intranets and Extranets Intranets are an
excellent way to distribute internal corporate
information. Extranets are networks that
connect companies with suppliers, business
partners, or other authorized users. Figure 3.
Intranet and Logistics management
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2.5 Internet Connection OptionsInternet access
providers (IAP or ISPs)--Telephone--Broadband-
-Leased line--Wireless --Bluetooth--Wireless
Ethernet (Wi-Fi)
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 2.6 Seven Layers 1. Physical layer 2. Data
link layer3. Network layer4. Transport layer
5. Session layer6. Presentation layer7.
Application layer
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 2.7 LAN, WAN and Network A network of
computers that are located closed together in the
same building-is called a local area network, or
LAN. Networks of computer that are connected
over greater distance are called wide area
networks, or WANs.Figure 4. LAN, WAN and
Internet
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2.8 Public and Private Networks A public
network is any computer network or
telecommunications network that is available to
the public.  A private network is a private,
leased-line connection between two companies that
physically connects their intranets to one
another.
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2.9 Virtual Private Networks (VPN) A virtual
private network (VPN) is an extranet that uses
public networks and their protocols to send
sensitive data to partners, customers, suppliers
and employees using a system called IP tunneling
or encapsulation.
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   III. Electronic Data Interchange Electroni
c data interchange (EDI) is the collection of
standards for exchanging data between computers
in separate organization.3.1 Broader EDI
StandardsCommonly used ASCX12 transaction sets
Commonly used UN/EDIFACT transaction sets
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3.2 How EDI WorksB2B, B2C   Figure 5. EDI and
Purchase process 3.3
Value-Added-Networks Direct connection or
indirect connection.Definition of
VANAdvantages and Disadvantages of VAN
 Figure 6. Indirect connection EDI Through a
VAN
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 3.4 EDI on the Internet Reasons on the
InternetOpen Architecture of the Internet and
benefits.
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IV. E - Commerce Hardware and Software  4.1 Web
Server Hardware Companies use a wide variety of
computer brands, types and sizes to host
electronic commerce operations.  4.1.1 Server
Computers Web server computers generally have
more memory, larger (and faster) hard disk
drives, and faster processors than the typical
desktop or notebook PCs.
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4.1.2 Web Hosting Choices Self-hosting
 Shared hosting Dedicated hosting
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 4.2 Software for Web Servers Some Web server
software can run on only one computer operating
system, while some can run on several operating
systems.   4.2.1 Operating Systems for Web
servers 4.2.2 Web server Software
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4.3 Functions of Electronic Commerce
Software 4.3.1 Basic functions Catalog
Display  Shopping Cart  Transaction Processing
 4.3.2 Advanced Functions Reasons Advanced
Functions cover the middleware, application
integration and Databases and integration with
ERP Systems.
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 V. Security Technology in Electronic
Commerce 5.1 Internet Security Classifications
and Policy Classifications SecurityIntegrity
Necessary A security policy requirements Six
points 
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5. 2 Encryption and DecryptionEncryption is the
coding of information by using a mathematically
based program and a secret key to produce a
string of characters that is unintelligible.
Figure 7. Encryption, Decryption and Purchase
Process
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 5.3 Digital Certificates A digital
certificate is an attachment to an e-mail message
or a program embedded in a Web page that verifies
that the sender or We site is who or what it
claims to be.    A digital certificate
includes six main elements.
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5.4 Firewalls Firewalls are computer and
software combination that is installed at the
Internet entry point of networked system.
Functions Firewall computers have three
characteristics Figure 8. Firewall and
Internet
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Conclusion  Electronic commerce technologies
and strategies are key factors for todays
e-commerce, as the Internet continues to become
more popular, electronic commerce techniques will
evolve to meet the challenges.  References
The End