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Part 9: Electronic Trade Programming

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  1. Chapter 9:Electronic Commerce Software

  2. Objectives In this chapter, you will learn about: • Finding and evaluating Web hosting services • Basic functions of electronic commerce software • Advanced functions of electronic commerce software • Electronic commerce software for small and midsize businesses • Electronic commerce software for midsize to large businesses • Electronic commerce software for large businesses that have an existing information technology infrastructure

  3. Web Hosting Alternatives • Self-hosting • Running servers in-house • Commerce service providers (CSPs) • Provide Internet access to companies and individuals • Offer Web server management and the renting of application software

  4. Web Hosting Alternatives • Shared hosting • Client’s Web site is on a server that hosts other Web sites simultaneously • Dedicated hosting • Service provider makes a Web server available to a client • Co-location • Service provider rents a physical space to the client to install its own server hardware

  5. Basic Functions of Electronic Commerce Software • Electronic commerce solutions should, at a minimum, provide: • A catalog display • Shopping cart capabilities • Transaction processing

  6. Basic Functions of Electronic Commerce Software • Additional software components can include: • Middleware • Enterprise application integration • Web services • Integration with enterprise resource planning (ERP) software • Supply chain management (SCM) software • CRM • Content Management Software • Knowledge Management Software

  7. Catalog Display • Catalog • Listing of goods and services • Static catalog: Simple list written in HTML that appears on a Web page • Dynamic catalog: Stores information about items in a database

  8. Shopping Cart • Early shopping carts relied on forms for submitting orders. • Problems with forms-based shopping: • Shoppers have to write down product information before going to the order form • Customers sometimes forgot whether they had clicked the submit button • Confusing and error prone

  9. Shopping Cart (continued) • Forms-based method of ordering has given way to electronic shopping carts • Shopping cart • Keeps track of items a customer has selected • Allows customers to view contents of their carts, add new items, or remove items

  10. Transaction Processing • Transaction processing occurs when a shopper proceeds to the virtual checkout counter by clicking a checkout button • The server must then perform any necessary calculations • Computing taxes and shipping costs • Provisions for coupons, special promotions, and time-sensitive offers

  11. Advanced Functions of Electronic Commerce Software • Middleware • Establishes a connection between electronic commerce software and, for example, an accounting system

  12. Enterprise Application Integration and Databases • Application program • Program that performs a specific function • Application server • Computer that takes request messages received by the Web server and runs application programs • Business logic • Rules used in the business

  13. Enterprise Application Integration and Databases • Page-based application systems • Return pages generated by scripts • Component-based application systems • Separate presentation logic from business logic • Database manager • Software that stores information in a highly structured way

  14. Enterprise Application Integration and Databases • Distributed information systems • Large information systems that store the same data in many different physical locations • Distributed database systems • Databases within distributed information systems

  15. Web Services • Combination of software tools that let application software in one organization communicate with other applications over a network • Companies are using Web services to offer improved customer service and reduce costs

  16. SOAP, WSDL, and UDDI Specifications • Simple Object Access Protocol (SOAP) • A message-passing protocol that defines how to send marked up data from one application to another across a network • A protocol for exchanging XML-based messages

  17. SOAP, WSDL, and UDDI Specifications • Web Services Description Language (WSDL) • Describes characteristics of logic units that make up specific Web services • Universal Description, Discovery, and Integration (UDDI) specification • Set of protocols that identify locations of Web services and their associated WSDL descriptions

  18. Electronic Commerce Software for Small and Midsize Companies • Commerce Service Providers (CSPs) • Have same advantages as ISP hosting services • Low cost is biggest single advantage • Offer free or low-cost electronic commerce software for building electronic commerce applications • • •

  19. Mall-Style Commerce Service Providers • Provide small businesses with: • Internet connection • Web site creation tools • Little or no banner advertising clutter • shopping cart software • Example CSPs • eBay Stores •

  20. Mall-Style Commerce Service Providers • Bigstep received many industry awards for its CSP offering • It provides two different storefront packages • Reports • Provide data-mining capabilities • Data mining • Looking for hidden patterns in data

  21. Electronic Commerce Software for Midsize to Large Businesses • Midrange packages allow a merchant to have explicit control over: • Merchandising choices • Site layout • Internal architecture • Remote and local management options

  22. Intershop Enfinity • Intershop Enfinity MultiSite provides: • Search and catalog capabilities • Electronic shopping carts • Online credit card transaction processing • The ability to connect to existing back-end business systems and databases

  23. IBM WebSphere Commerce Professional Edition • Set of software components that provides software suitable for midsize to large businesses • Includes: • Catalog templates • Setup wizards • Advanced catalog tools

  24. Microsoft Commerce Server 2002 • Allows businesses to sell products or services on the Web using the following tools: • User profiling and management • Transaction processing • Product and service management • Target audience marketing • Provides many predefined reports for analyzing site activities and product sales data

  25. Electronic Commerce Software for Large Businesses • Examples of enterprise-class products that can be used to run a large online business: • IBM WebSphere Commerce Business Edition • Oracle E-Business Suite • Broadvision One-To-One Commerce • Enterprise-class software • Typically provides good tools for linking to and supporting supply and purchasing activities

  26. Customer Relationship Management Software • Must obtain data from operations software that conducts activities such as: • Sales automation • Customer service center operations • Marketing campaigns • Must also gather data about customer activities on the company’s Web site and any other points of contact

  27. Supply Chain Management Software • Helps companies to coordinate planning and operations with their partners in the industry supply chains • Performs two general types of functions: • Planning • Execution

  28. Content Management Software • Helps companies control large amounts of text, graphics, and media files • EMC Software • Vignette • WebMethods

  29. Knowledge Management Software • Helps companies do four main things: • Collect and organize information • Share information among users • Enhance ability of users to collaborate • Preserve knowledge gained through the use of information

  30. Summary • A company must first choose between paying a service provider to host the site and self-hosting • External hosting options • Shared hosting, dedicated hosting, and co-location • Key elements of electronic commerce software • Catalogs, shopping carts, and transaction processing capabilities

  31. Summary • Commerce service provider (CSP) • Used by small enterprises just starting an electronic commerce initiative • If a company already has computing equipment and staff in place, purchasing a midrange electronic commerce software package provides more control over a site • Large enterprises with high transaction rates need to invest in larger, more customizable systems