Transcript Week 3 - Mercy College

E-Commerce Technology
e-Commerce Technology Overview
Commerce (8000 B.C.)
BUYER
LOCATES
SELLER
SELECTION
OF GOODS
NEGOTIATION
SALE
PAYMENT
DELIVERY
INFORMATION
PHYSICAL
POST-SALE
ACTIVITY
Electronic Commerce (2002)
SOME TECHNOLOGIES USED:
SEARCH ENGINE
ON-LINE CATALOG
RECOMMENDER AGENT
SOME INFORMATION GATHERED:
BUYER
LOCATES
SELLER
SEARCH BEHAVIOR
BROWSING BEHAVIOR
CUSTOMER PREFERENCES
CONFIGURATOR
SHOPPING BOT
SELECTION
OF GOODS
EFFECTIVENESS OF PROMOTIONS
BARGAINING STRATEGIES
AGGREGATOR
AUTOMATED AGENTS
TRANSACTION PROCESSOR
NEGOTIATION
PRICE SENSITIVITIES
PERSONAL DATA
SALE
MARKET BASKET
DATA INTERCHANGE
CRYPTOGRAPHY
PAYMENT
E-PAYMENT SYSTEMS
TRACKING AGENT
CREDIT/PAYMENT INFORMATION
DELIVERY REQUIREMENTS
DELIVERY
ON-LINE PROBLEM REPORTS
ON-LINE HELP
INFORMATION
PHYSICAL
BROWSER SHARING
INTERNET TELEPHONY
POST-SALE
ACTIVITY
CUSTOMER SATISFACTION
FOLLOW-ON SALES OPPORTUNITIES
The Electronic Marketplace
BUYER
LOCATES
SELLER
CREDIT FILE
SELECTION
OF GOODS
NEGOTIATION
ORDER
TRACKING
INSTALL
BID PREP
SALE
PAYMENT
DATA
ANALYSIS
DIRECT
SELL
SECURE
PAYMENT
DELIVERY
DELIVERY
POST-SALE
ACTIVITY
CRM
The eCommerce Process
• Buyers and sellers find each other
– Communication (via Networking, the Internet, and
Web-Based Information Architectures)
– Human-Computer Interaction, Multimedia
– Intermediaries
• Negotiation
The eCommerce Process
• Transaction
– Transaction processing, Databases
– Electronic Payment Systems,
– Computer Security,
– eCommerce Architecture
• Order fulfillment
– Manufacture (manufacturing systems)
– Delivery (tracking systems)
– Supply Chain Management
The eCommerce Process
• Post-sale events
– Customer Service and Help Facilities
– Reorder, restock
• Accounting
– Transaction processing
– Interoperability between online and legacy
systems
• Data analysis
– Data Mining
eCommerce Technology
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Infrastructure
Wireless technologies
Search engines
Access security
Data interchange
• Security
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Electronic payments
Content delivery
Intelligent agents
Data mining
Mass personalization
E-Commerce Infrastructure
• What worldwide structure is required to support eCommerce?
• Network
• Machines
• Protocols
• Security
• Payment
The Internet
• The fundamental technology linking business and
people around the world in less than 1 second
– Nothing competes with it
• How does it work?
• How big is it?
• Who owns it? Who governs it?
• How does it grow? How big can it get?
• What architecture allows this?
• What are the limitations?
Internet Infrastructure
Mercy
College
Internet
Server
It is a global collection of networks, both big and small.
These networks connect together in many different ways to form the single entity that we know as the Internet.
In fact, the very name comes from this idea of interconnected networks.
Large ISP, UUNET
Most large communications
companies have their own
dedicated backbones
connecting between
various regions.
In each region, the company
has a
Point of Presence (POP).
The POP is a place for local
users to access the
company's network,
often through a local phone
number or dedicated line
What are Fiber Optics
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Fiber optics (optical
fibers) are long, thin
strands of very pure glass
about the diameter of a
human hair. They are
arranged in bundles called
optical cables and used to
transmit light signals over
long distances.
It has following parts:
•core - thin glass center of the fiber where the light travels
•cladding - outer optical material surrounding the core that reflects the light back into the core
•buffer coating - plastic coating that protects the fiber from damage and moisture
Client/Server Architecture
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Fundamental Internet structure
Client requests service; server provides it
Data exchanged only through real-time messages
Server may become a client to a different server
1
Server 2
responds
to client 1
Client 1 requests
service from server 2
The Internet
2
Client 2 requests
service from server 3
3
Server 3 responds
to client 2
Network Topologies
• More than two computers causes complications:
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2
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4
LAN BUS TOPOLOGY
5
LAN = LOCAL AREA
NETWORK
• Each machine on a network must have a unique
address
• If machine 2 sends a message to machine 4, what
tells 1, 3 and 5 to ignore it, but 4 to listen?
• Ethernet protocol
Routing
Machine 1.35 wants to send a
packet to Machine 3.249.
Machine
2.16
Routers
Routers determine the path
the packet will take.
Machine
1.35
B
A
Router A can send
the packet either way
NUMBER OF ROUTES
ROUTING STATISTICS
Machine
3.249
4.1
NETWORK 4 &
IT’S ROUTER
5.9
Routers
NORTEL
3COM
CISCO
Web Server Basics
Internet Server
• The server is the heart of the technical
architecture, receiving requests from Internet
users, retrieving the information locally or
from networked devices and replying.
• Selection and sizing of this machine is critical
task, typically presenting a tradeoff between
performance and cost.
Web Server
Web server - A Web server is a piece of computer software
that can respond to a browser's request for a page, and deliver
the page to the Web browser through the Internet.
You can think of a Web server as an apartment complex, with
each apartment housing someone's Web page.
In order to store your page in the complex, you need to pay
rent on the space.
Pages that live in this complex can be displayed to and
viewed by anyone all over the world.
Your landlord is called your host, and your rent is usually
called your hosting charge.
Every day, there are millions of Web servers delivering pages
to the browsers of tens of millions of people through the
network we call the Internet.
Server Workflow
http://www.site.com/index.htm
Protocol Domain Name
Verisign.com
How can you get the URL that you want?
Web Page
Lets Display
http://www.site.com
/index.htm
/dir1/dir2/index.htm (Directory structure)
/cgi-win/maillist.exe (Evoking a mail list
perform a function and than put the result on
the web)
UNIX v.s. Windows
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The two basic options are
– UNIX based platforms(IBM, Sun, HP)
– Microsoft NT based, Intel platforms
MS products generally cost less than UNIX platforms.
UNIX is a more mature OS than Windows based servers. As a result it
delivers a better performance for the same hardware configuration.
UNIX administration, requires more complex skills.
If you don’t have in-house UNIX expertise, investing in an UNIX based
server may require a large maintenance cost.
Client / Server
In general, all of the machines on the Internet can be categorized
as two types:
• Server
• Clients
Those machines that provide services (like Web servers or FTP servers) to other machines
are servers.
And the machines that are used to connect to those services are clients.
When you connect to Yahoo at www.yahoo.com to read a page, Yahoo is providing a machine
(probably a cluster of very large machines), for use on the Internet, to service your request.
Yahoo is providing a server.
Your machine, on the other hand, is probably providing no services to anyone else on the Internet.
Therefore it is a user machine, also known as a client.
It is possible and common for a machine to be both a server and a client, but for our
purposes here you can think of most machines as one or the other
Domain Name Servers
• If you spend any time on the Internet sending email
or browsing the web, then you use Domain Name
Servers without even realizing it.
• Domain Name Servers, or DNS, are an incredibly
important but completely hidden part of the Internet,
and they are fascinating!
• The DNS system forms one of the largest and most
active distributed databases on the planet, and
without DNS the Internet would shut down very
quickly.
The Basic Idea
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When you use the web or send an email message, you use a domain
name to do it. For example, the following URL:
– http://www.mercy.edu
Contains the domain name mercy.edu. So does this email address:
– [email protected]
Human-readable names like mercy.edu are easy for human beings to
remember, but they don't do machines any good. All of the machines
use names called IP Addresses to refer to one another. For example,
the machine that humans refer to as www.mercy
.edu has an IP address of 216.27.61.137. Every time you use a domain
name, you use the Internet's domain name servers (DNS) to translate
the human-readable domain name into the machine-readable IP
address.
During a day of browsing and emailing, you might access the domain
name servers hundreds of times!
The Internet
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Protocols (TCP/IP, HTTP)
Addressing schemes
Domain names, Domain Name servers
URLs
Browsers
Programming
– HTML,Perl, Common Gateway Interface (CGI)
– Java, …
• Web architecture
– What web systems look like
Web Architecture
How are web sites constructed?
TIER 4
Database
TIER 3
Applications
TIER 2
Server
TIER 1
SOURCE: INTERSHOP
Firewall
• The firewall is typically a hardware/software
combination that controls the traffic between
your internal network and the public internet.
• Although a firewall can be directly
incorporated into an Internet server, it is most
commonly a specialized computer.
• The configuration is a challenging task and
should be performed by experts.
Firewall
As you can see all inbound and outbound Internet traffic must pass through the firewall
Would you leave your companies
front door unlocked at night?
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Obviously not, so why leave doors to your network open? If your network is
connected to the Internet a firewall is an absolute must. Some of the reasons
companies do not currently have a firewall in place:
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They feel the threat of an attack to their system(s) is low
They think that a firewall is difficult to set up and maintain
They think that the implementation of a firewall solution would be a significant
investment
They are un-informed about the many ways their system(s) can be compromised and
the amount of freely available tools the average person can use to do so
Would you leave your companies
front door unlocked at night?
• There are many firewall solutions available today ranging in
price from under $1000 to tens of thousands of dollars. Typically
a firewall is either a standalone device or a software package
that usually requires a dedicated machine or server to run on.
eCommerce Data Exchange Needs
RFPs
Catalogs
Letters of Credit
Quotations
Purchase Orders
Ship Notices
Electronic Payments
Invoices
Data Interchange
• How can sites exchange information without
prior agreement?
– What do the data fields mean? price, extended
price, unit price, prix, цена, τιμή, 값, X’AC12’
– XML: Extensible Markup Language
Invoice Example
<UnitPrice>6.05</UnitPrice>
SOURCE: PROF. JEROME YEN
Electronic Payment Systems
Electronic Payments
• Forms of money
– token (cash), notational (bank account), hybrid (check)
• Money does not move on the Internet
• Credit-card transactions
– Secure protocols: SSL, SET
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Automated clearing and settlement systems
Smart cards
Electronic cash, digital wallets
Micropayments
Electronic delivery of goods
Electronic bill presentment and payment
– BlueGill
Intelligent Agents
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Programs to perform tasks on your behalf
Metasearchers, shopping bots, news agents, stock
agents, auction bots, bank bots
How to make agents “intelligent”
– Rule-based systems
– Knowledge representation
Agents that learn
– Inductive inference
Negotiation agents
Avatars (characters in human form)
SYLVIE from VPERSON
Shopping Agents
Data Mining
• Extracting previously unknown relationships from
large datasets
• Discovery of patterns
• Predicting the future
– past behavior best predictor of future purchasing
• Market basket analysis
– diapers/beer
Data Mining Tools
• Visualization (“seeing” the data) Table Lens
• Predictive Modeling
• Database Segmentation
– Classify the users
• Link Analysis
– Associations discovery
• Deviation Detection
– Are any of the data unusual? Fraud detection
Data Mining
• Extracting previously unknown relationships from
large datasets
– discover trends, relationships, dependencies
– make predictions
– target customers
• In eCommerce, data comes from
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customers themselves
cookies
external databases
data matching
DoubleClick, etc.
Digital rights management tools (what we read and how
much)
– library records
Mass Personalization
Outline
• What is personalization?
• Personalization is based on data
• How can data about people be acquired?
– From people themselves
– From their clickstream
– From outside data sources
• How can data be used
– To improve the customer’s experience?
– To help the company?
Mass Personalization
• Treating each user as an individual
– key is INFORMATION
• How to acquire and store information about
customers
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Cookies
Question and response
Clickstream analysis
External databases.
• How to use information effectively and instantly
What is Personalization?
• Addressing customers by name and remembering their
preferences
• Showing customers specific content based on who they are and
their past behavior
• Empowering the customer. Examples: Land’s End, llbean
• Product tailoring. Example: dell.com
• Connecting to a human being when necessary.
CallMe
– Adeptra TeleBanner
• Allowing visitors to customize a site for their specific purposes
• Users are 20%-25% more likely to return to a site that they tailored
(Jupiter Communications, Inc.)
Need For Personalization
• In the real-world
– Customer relationship is mediated by people
– Personalization is critical: PEOPLE are PEOPLE
• On the Web
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Too many customers; too few employees
Orders are entered by machine; follow-up is by machine
Customer relationship is mediated by machines
Personalization is critical
• Uniqueness (everyone is different)
• Efficiency (everyone has limited time)
Store Visitors in the Real World
• Customer:
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buys something
pays cash
uses a credit card
uses a store charge card
DATA COLLECTED
ONLY IF VISITOR
BUYS SOMETHING
Click Behavior
CASUAL VISITOR
STORE
HOME PAGE
OFFICE
PRODUCTS
HOUSEWARES
PRESENTATION
ITEMS
LASER
POINTERS
LASER
1
LASER
2
KITCHEN
TOASTERS
LASER
3
SPORTING
GOODS
HUNTING
RIFLES
GOLF
CLUBS
CALLAWAY
Click Behavior
PROSPECTING VISITOR
STORE
HOME PAGE
OFFICE
PRODUCTS
HOUSEWARES
PRESENTATION
ITEMS
LASER
POINTERS
LASER
1
LASER
2
KITCHEN
TOASTERS
LASER
3
SPORTING
GOODS
HUNTING
RIFLES
GOLF
CLUBS
CALLAWAY