E-commerce applications         Luisa Calcagno Course of Software Engineering 2          May 29th 2002
Plan of the talk• Introduction to e-commerce and e-  commerce applications• Issues in developing e-commerce  applications•...
A definition for e-commerce• A universally accepted definition does not  exist• Anything that uses electronic technology i...
The EU definition for e-commerce• “e-commerce is based on the electronic  processing and transmission of data. It  encompa...
Origins of e-commerce applications• E-commerce applications existed long  before Internet  – EDI (Electronic Data Intercha...
Taxonomy of e-commerceapplications• Three main categories:  – Business to consumer (B2C)  – Business to business (B2B)  – ...
B2C applications• Offer directly to the customer an interface of  activity   – Typical examples:      • Online book store ...
B2C applications:  advantages and disadvantages• Advantages:  – Allow company to extend existing services to    customers ...
B2B applications• Realize transactions needed to perform  financial or commercial activities by  companies over the Intern...
B2B applications:advantages and disadvantages• Advantages:  – Help to automate communications between     companies making...
C2C applications• Concern the consumers who run  negotations with other consumers  sometimes utilizing as intermediary a  ...
C2C applications:advantages and disadvantages• Advantages  – Allow consumers to interact directly among    them  – Give to...
B2G applications• Correspond to all kind of transactions  between company and public  administrator• Utilized mostly in th...
Mobile commerce applications• Concern doing businesses by means of  mobile wireless devices• Can be both B2B and B2C• Have...
Plan of the talk• Introduction to e-commerce and e-  commerce applications• Issues in developing e-commerce  applications•...
Issues in developing e-commerceapplications (1/2)• Many of the following issues:  –   Security  –   Flexibility  –   Scala...
Issues in developing e-commerceapplications (2/2)• A state-of-the-art application always fail if  people do not utilize it...
Security Issues• Security is a crucial feature  – Most transactions take place in a fully    automated way  – Restricted d...
Flexibility Issues• E-commerce systems are subject to  frequent structural changes because of  mutations of:  – Products a...
Scalability• Capability to support a certain number  of users (thousands, even millions)  without compromising performance...
Fault tolerance• A less fault-tolerant application will be  less available to the user• Every minute that a site is not av...
Integration• Always needed since no application offering  every commercial functionality can be  realized• Critical becaus...
User Interfaces• Must be intuitive,easily comprehensible  and of simple utilization• In the case of B2C must support  prof...
Multi-channel interfaces• Application interfaces must support  several kinds of connections:  – Web browsers  – Web TV  – ...
Time-to-market• Has greater importance than elsewhere• Emphasis on COTS and reuse
Plan of the talk• Introduction to e-commerce and e-  commerce applications• Issues in developing e-commerce  applications•...
Two-tier Architecture (client server)• Data reside on a server• Business logic and user interfaces reside on  clients• Dra...
Three-tier architecture• Separates the business logic of the  application from user interfaces and  from data access• Midd...
Three-tier architecture
Application server• Software that runs on the middle tier of  a three-tier environment• In multi-tier environments it is o...
Application Server-based  e-commerce platform architecture                             E-commerce platform                ...
Example: iPlanet architecture
Plan of the talk• Introduction to e-commerce and e-  commerce applications• Issues in developing e-commerce  applications•...
Domain Model
Use Case Model
Plan of the talk• Introduction to e-commerce and e-  commerce applications• Issues in developing e-commerce  applications•...
Future Perspectives (1/2)• “Electronic commerce is going to reduce a lot of  overhead in the economy”• “It will allow a pu...
Future Perspectives (2/2)• In spite of Bill’s words, people still lack trust in  e-commerce• However, in Europe there is a...
Trends in Mobile Commerce for theEU Markets: entertainment
Trends in Mobile Commerce for theEU Markets: banking and finance
Worldwide TLC markets by region
Plan of the talk• Introduction to e-commerce and e-  commerce applications• Issues in developing e-commerce  applications•...
References (1/4)• Introduction to e-commerce and the  development of e-commerce applications:  – Professional Java E-Comme...
References (2/4)• Electronic Data Interchange:  – Intodruction to EDI, vv.aa. ,DevEdge online• Cyberphobia and trends in e...
References (3/4)• Platforms for e-commerce:  – Building Applications in the Net Economy,    Netscape Communications Corpor...
References (4/4)• E-procurement and e-marketplaces:  – E-procurement white paper, Digital Union 2001 (    http://www.digit...
The End
Electronic Data Interchange (EDI)• Electronic exchange of  – Business documents  – Business data• In a standard format (AN...
Electronic Funds Transfer (EFT)• The banking equivalent of EDI• Denotes the transfer of :  – Electronic checks  – Customer...
Order conversion rates• Defined as:  – # of orders / # of contacts  – By month or year, four-month periods, etc.• Measure ...
E-procurement applications (1/3)• Automate enterprise purchasing  processes, i.e. perform all of the  activities related t...
E-procurement applications (2/3)• Automating procurement of indirect  goods can dramatically reduce costs  since:  – Lesse...
E-procurement applications(3/3)                                                                          4. Purchase order...
E-marketplace• An environment that brings buyers and  sellers together in a virtual space for e-  commerce, enabling them ...
Cybermalls• Include more virtual shops• Appear as web portals with links to  single e-shops grouped by different  product ...
Presentation Layer• Its purpose is to provide a user  interface to the end user of the  application• Controls the look-and...
Business Logic Layer• The heart of the application itself• Contains the business rules and /or  processes• Its components ...
Data & Legacy access Layer• Its purpose is to give to the business  logic components access to backend  data sources such ...
Horizontal services• Services provided by the application server  by means of an underlying technology  (CORBA, EJB, COM,e...
Session Management• Mantains the correlation among  requests generated by the same user
Resource Pooling• Caching the instances of used  resources (e.g. database connections)  improves performances
Load Balancing andFail Over• Make possible to distribute incoming  requests• Handle clients reconnection in the case  of s...
Cyberphobia and the .com crash•“Cyberphobia” is the market’s irrational fear of theInternet due to the several bankruptcie...
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  • A volte si usa (impropriamente) e-business per indicare e-commerce
  • On-line delivery of digital content: consegna on-line di prodotti digitali (es. un libro in formato .pdf, un video mpeg etc.) Electronic fund transfer: operazioni bancarie (trasferimento soldi) Electronic share trading: operazioni di borsa (acquisto di quote, azioni, etc)
  • EDI e EFT erano fatte soprattutto per le aziende Internet permette a tutti di condurre affari elettronicamente
  • Retail sale = vendita al dettaglio( caratterizzato dall’acquisto diretto di prodotti o servizi dell’attività da parte del consumatore) Automalll.com un sito che consente ai propri utenti discegliersi comodamente da casa il colore dell’ automobile,gli accessori dell’automobile,i pezzi di ricambio Cybermalls = centri commerciali virtuali
  • Turnover = volume di affari
  • Prezzi ridotti non solo per la riduzione della manodopera ,ma anche se uno aveva la rete privata tipo edi il passaggio a internet ha dimiuito le spese di manutenzione della rete .
  • Le società intermediarie devono trovare altri flussi di entrate non tradizionali che possono essere una piccola tassa sul servizio o una pubblicità o combinazioni di entrambe le cose
  • Le richieste di fornitura vengono pubblicizzate su internet e le imprese possono rispondere per via elettronica
  • Bisogna tenere conto del fatto che chi usa le interfacce non è un esperto di informatica
  • Middle-tier risiede la business logic
  • EJB permette di realizzare i servizi necessari e la logica di applicazione in maniera distribuita Microsoft Commerce Server nel Business Logic usa COM+
  • Dati su applicazioni di divertimento (la più grossa fetta di mercato)
  • Servizi bancari forniti in Mobile (dati fino al 2002, previsioni fino al 2006)
  • 1.9% è un dato irrisorio Si riferisce al secondo quadrimestre del 2000
  • Usando HTTP non si può tenere traccia dello stato di una certa operazione Per questo motivo c’è bisogno di un servizio di session management Esempio: per tenere traccia del contenuto del carrello
  • Connessione al database è un’operazione lunga il caching di una connessione velocizza l’applicazione
  • Ecom

    1. 1. E-commerce applications Luisa Calcagno Course of Software Engineering 2 May 29th 2002
    2. 2. Plan of the talk• Introduction to e-commerce and e- commerce applications• Issues in developing e-commerce applications• Architecture of e-commerce applications• Bookstore example• Perspectives for e-commerce• References
    3. 3. A definition for e-commerce• A universally accepted definition does not exist• Anything that uses electronic technology in order to do business can be intended as e- business• We can look at e-commerce as to a subset of e-business concerning commerce• Commerce is intended as the activity of exchanging goods and services with some kind of payment
    4. 4. The EU definition for e-commerce• “e-commerce is based on the electronic processing and transmission of data. It encompasses many diverse activities including electronic trading of goods and services, on-line delivery of digital content, electronic fund transfer, electronic share trading, public procurement.” (EU(97)/157)
    5. 5. Origins of e-commerce applications• E-commerce applications existed long before Internet – EDI (Electronic Data Interchange) – EFT (Electronic Funds Transfer)• Internet offered the general public the opportunity to conduct businesses online
    6. 6. Taxonomy of e-commerceapplications• Three main categories: – Business to consumer (B2C) – Business to business (B2B) – Consumer to consumer (C2C)• Other categories: – Business to government (B2G) – Mobile Commerce
    7. 7. B2C applications• Offer directly to the customer an interface of activity – Typical examples: • Online book store (e.g. amazon.com) • Online car purchasing (e.g. automall.com) • Booking and purchase of airline tickets (e.g. ryanair.com)• Correspond to retail sale• Growth of B2C applications thanks to Internet• A new kind of B2C applications are the Cybermalls
    8. 8. B2C applications: advantages and disadvantages• Advantages: – Allow company to extend existing services to customers – Allow company to increase its customers – Offer a wider choice and allow cheaper prices – May give to the company a worldwide visibility – Online shops are accessible 24h a day• Disadvantages: – Low order conversion rates – High risk (see Cyberphobia)
    9. 9. B2B applications• Realize transactions needed to perform financial or commercial activities by companies over the Internet• Some typical applications: – E-procurement – E-Marketplace• The turnover is much greater than that dealed with B2C applications
    10. 10. B2B applications:advantages and disadvantages• Advantages: – Help to automate communications between companies making them easier and quicker – Allow to cut prices drastically – Help in reducing mistakes• Disadvantages: – Often need legacy integration
    11. 11. C2C applications• Concern the consumers who run negotations with other consumers sometimes utilizing as intermediary a company – Examples: • Ebay • Autotrader.com
    12. 12. C2C applications:advantages and disadvantages• Advantages – Allow consumers to interact directly among them – Give to the consumers a new way of purchasing and selling services and goods• Disadvantages – Little earning capacity
    13. 13. B2G applications• Correspond to all kind of transactions between company and public administrator• Utilized mostly in the USA
    14. 14. Mobile commerce applications• Concern doing businesses by means of mobile wireless devices• Can be both B2B and B2C• Have a growing importance in the future of e- commerce applications• Will introduce completely new forms of electronic commerce – E.g. E-tickets• The development of such applications faces some of the greatest challenges in the security area to secure the trust of consumers
    15. 15. Plan of the talk• Introduction to e-commerce and e- commerce applications• Issues in developing e-commerce applications• Architecture of e-commerce applications• Bookstore example• Perspectives for e-commerce• References
    16. 16. Issues in developing e-commerceapplications (1/2)• Many of the following issues: – Security – Flexibility – Scalability – Fault tolerance – Integration – Interfaces (graphical and not) – Time-to-market are common to many applications, but they are all critical in the case of e-commerce because of its nature
    17. 17. Issues in developing e-commerceapplications (2/2)• A state-of-the-art application always fail if people do not utilize it – A constant attention must be payed to the users over the whole development process• A close integration with every business aspect is needed: – For an online buyer security and easy access to the informations are the primal needs – A manager will need a flexible application to adapt the business to the new trends in a faster way
    18. 18. Security Issues• Security is a crucial feature – Most transactions take place in a fully automated way – Restricted data are transmitted through a public network• Users must be sure that their money will not be lost or stolen
    19. 19. Flexibility Issues• E-commerce systems are subject to frequent structural changes because of mutations of: – Products and services provided by the firm – Commercial partnerships
    20. 20. Scalability• Capability to support a certain number of users (thousands, even millions) without compromising performances• It is important because a slow application often means to lose customers (especially in B2C) since they have very small patience
    21. 21. Fault tolerance• A less fault-tolerant application will be less available to the user• Every minute that a site is not available costs 1400$ to the company (survey on 400 major companies by Oracle)• It is easy to lose customers forever• It is necessary to redirect the users without they perceive it
    22. 22. Integration• Always needed since no application offering every commercial functionality can be realized• Critical because the commercial funcionalities are often realized by many different legacy and third-party applications – Examples: • ERP systems • Legacy systems
    23. 23. User Interfaces• Must be intuitive,easily comprehensible and of simple utilization• In the case of B2C must support profiling in order to anticipate the customer requests• They also need to be customizable
    24. 24. Multi-channel interfaces• Application interfaces must support several kinds of connections: – Web browsers – Web TV – Cellular phones (via WAP) – PDA
    25. 25. Time-to-market• Has greater importance than elsewhere• Emphasis on COTS and reuse
    26. 26. Plan of the talk• Introduction to e-commerce and e- commerce applications• Issues in developing e-commerce applications• Architecture of e-commerce applications• Bookstore example• Perspectives for e-commerce• References
    27. 27. Two-tier Architecture (client server)• Data reside on a server• Business logic and user interfaces reside on clients• Drawbacks : – Clients sustain the main load and consequently result to be monolithic and heavyweight – Excessive overhead – Simple but unsuitable for e-commerce applications
    28. 28. Three-tier architecture• Separates the business logic of the application from user interfaces and from data access• Middle tier can be furtherly divided• In this case we call it multi-tier architecture: – Easier to modify one component – Lower cost to deploy and maintain
    29. 29. Three-tier architecture
    30. 30. Application server• Software that runs on the middle tier of a three-tier environment• In multi-tier environments it is often a distributed and complex software• Commercial implementations exist: – Microsoft Commerce Server 2000 – Sun iPlanet – IBM WebSphere Application Server
    31. 31. Application Server-based e-commerce platform architecture E-commerce platform ERP Presentation Business Data & Legacy Layer Logic Layer Access Layer Legacy systems Resource Load Transactions Security Session Pooling balancing Horizontal Services Database Application ServerClient tier Server tier Data tier
    32. 32. Example: iPlanet architecture
    33. 33. Plan of the talk• Introduction to e-commerce and e- commerce applications• Issues in developing e-commerce applications• Architecture of e-commerce applications• Bookstore example• Perspectives for e-commerce• References
    34. 34. Domain Model
    35. 35. Use Case Model
    36. 36. Plan of the talk• Introduction to e-commerce and e- commerce applications• Issues in developing e-commerce applications• Architecture of e-commerce applications• Bookstore example• Perspectives for e-commerce• References
    37. 37. Future Perspectives (1/2)• “Electronic commerce is going to reduce a lot of overhead in the economy”• “It will allow a purchase order to go from being about a $75 cost to about $10”• “if you had to pick whos the big winner in all of this, youd definitely have to pick consumers”• “It lets you go out to the Internet and look at products and services of every kind, that never would have been available through traditional distribution channels”• (Bill Gates at the White House Conference on the New Economy, April 2000)
    38. 38. Future Perspectives (2/2)• In spite of Bill’s words, people still lack trust in e-commerce• However, in Europe there is a strong tendency towards the acceptance of Mobile Commerce• EITO (European Information Technology Observatory) 2002 highlights the growing importance of Mobile Commerce (see next page)
    39. 39. Trends in Mobile Commerce for theEU Markets: entertainment
    40. 40. Trends in Mobile Commerce for theEU Markets: banking and finance
    41. 41. Worldwide TLC markets by region
    42. 42. Plan of the talk• Introduction to e-commerce and e- commerce applications• Issues in developing e-commerce applications• Architecture of e-commerce applications• Bookstore example• References
    43. 43. References (1/4)• Introduction to e-commerce and the development of e-commerce applications: – Professional Java E-Commerce, M.Kerzner et al., Wrox Press, 2001• EU definition for e-commerce: – “A European Initiative in Electronic Commerce – Communication to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions” (COM(97)/157)
    44. 44. References (2/4)• Electronic Data Interchange: – Intodruction to EDI, vv.aa. ,DevEdge online• Cyberphobia and trends in e-commerce: – http://www.webmergers.com• Application Servers: – Introduction to iPlanet Application Server Architecture, Robert Schulteis, Sun Microsystems, 2002 – http://www.sun.com/developers/evangcentral
    45. 45. References (3/4)• Platforms for e-commerce: – Building Applications in the Net Economy, Netscape Communications Corporation White paper, 1997• Architectures for e-commerce: – Architetture, tecnologie e modelli funzionali nell’e- commerce, Castrogiovanni, Magliano, Sciarappa, Notiziario tecnico Telecom Italia, December 2001• Statement of Bill Gates – The White House Conference on the New Economy April 5, 2000
    46. 46. References (4/4)• E-procurement and e-marketplaces: – E-procurement white paper, Digital Union 2001 ( http://www.digitalunion.com)• European Information Technology Observatory (EITO): – http://www.eito.com• The Bookstore example: – UML for E-Commerce, Doug Rosenberg – http://www.iconixsw.com
    47. 47. The End
    48. 48. Electronic Data Interchange (EDI)• Electronic exchange of – Business documents – Business data• In a standard format (ANSI X12,EDIFACT)• Established between 1968 and 1975 in the transportation industries (U.S.)• Application-to-application communication without human intervention
    49. 49. Electronic Funds Transfer (EFT)• The banking equivalent of EDI• Denotes the transfer of : – Electronic checks – Customer accounts – Payment informations in automated way
    50. 50. Order conversion rates• Defined as: – # of orders / # of contacts – By month or year, four-month periods, etc.• Measure the capability of a certain B2C application to convert an user into a buyer• A survey carried out in August 2000 showed that order conversion rates in USA were of 1.9% (Boston Consulting Group and Shop.org)
    51. 51. E-procurement applications (1/3)• Automate enterprise purchasing processes, i.e. perform all of the activities related to generating an order on the buyer’s side• Purchased goods can be : – Direct goods (critical items in the supply chain) – Indirect goods (MRO –Maintenance Repair and Operations - such as office items)
    52. 52. E-procurement applications (2/3)• Automating procurement of indirect goods can dramatically reduce costs since: – Lessens maverick buying – Reduces supplier response time
    53. 53. E-procurement applications(3/3) 4. Purchase order is electronically placed 3. Order approvation compliant to company standards and procedures 2. Purchase request is performed by employees 5. Order is fulfilled by via a Web interface the supplier Indirect goods e-procurement 1. Product selection from available catalogues 6. Product delivery 8. Payment requestelectronically forwarded 7. Product receipt
    54. 54. E-marketplace• An environment that brings buyers and sellers together in a virtual space for e- commerce, enabling them to reach new customers and reduce transaction costs• E-marketplaces are becoming more fashionable
    55. 55. Cybermalls• Include more virtual shops• Appear as web portals with links to single e-shops grouped by different product categories (e.g. music or books)• Advantages for smaller businesses: – Reduced initial investment – Easily traceability through the mall’s brand
    56. 56. Presentation Layer• Its purpose is to provide a user interface to the end user of the application• Controls the look-and-feel of the application and responds to user events• Serves actually as the front-end of the application
    57. 57. Business Logic Layer• The heart of the application itself• Contains the business rules and /or processes• Its components link between presentation and data/legacy layers
    58. 58. Data & Legacy access Layer• Its purpose is to give to the business logic components access to backend data sources such as: – Databases – ERP systems – Other custom systems
    59. 59. Horizontal services• Services provided by the application server by means of an underlying technology (CORBA, EJB, COM,etc.)• Typical services: – Transactions – Security – Session Management – Resource pooling – Load balancing and fail over
    60. 60. Session Management• Mantains the correlation among requests generated by the same user
    61. 61. Resource Pooling• Caching the instances of used resources (e.g. database connections) improves performances
    62. 62. Load Balancing andFail Over• Make possible to distribute incoming requests• Handle clients reconnection in the case of system crash
    63. 63. Cyberphobia and the .com crash•“Cyberphobia” is the market’s irrational fear of theInternet due to the several bankruptcies occured inthe past years•B2C represent 75% of bankruptciesInternet shutdowns 2000 2001 2002 Jan-Apr 6 220 66 Source:Webmergers.com
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