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Is Electronic Commerce still alive?
Yes! Just in a post-natal depression
Overview
• The course• Definition of Electronic Commerce (EC)• Framework and Context of EC• Key Issues in EC• IT for EC• Examples of EC
The course
1. Introduction2. Process modelling3. Representation and integration of data for EC4. Virtual markets and interactions5. Personalisation, searching and agents
Process modelling
a. trade proceduresb. modelling toolsc. Verification of trade procedures (basics)d. Verification applications
Representation and integration of data for e-commerce
a. XMLb. XML and XSLTc. PHPd. Data integratione. Catalogues
Virtual markets & interactions
a. Virtual markets, infrastructure and protocolls
b. Auctionsc. Negotiations d. EDI and OpenEDI
Personalisation, searching and agents
a. Searching and comparing in contextb. Personalisationc. Agents in e-commerce
Definition (?)
Electronic Commerce is:
Any form of business transaction in which theparties interact electronically rather than by physical exchanges or direct physicalcontact
Benefits of EC
supplier opportunity• global presence• improved competitiveness• mass customisation &
"customerisation"• shorten or eradicate supply
chains• substantial cost savings• novel business opportunities
customer benefit• global choice• quality of service• personalised products &
services• rapid response to needs
• substantial price reductions• new products & services
CommerceInformation exchange
Product/service/… exchange
Information exchange
• Partner/product search• negotiation, market, auction• contract• contract fulfilment (directives)• legal information• etc.
Product/service exchange
• (micro-)payment• (intangible) product• logistics of products and services• subscription mechanisms
EC affects two things
2. Structure within organisations
1. Transactions between organisations and consumers
Stages of Business Transactions
Information stage Negotiation stage Fulfillment stage Satisfaction stage
Business Transaction
Stages
Support for stages
Information stage Negotiation stage Fulfillment stage Satisfaction stage
-Trade relations
-Chambers ofcommerce
-product andcompany databases(e.g. Dun &Bradstreet)
-WWW
- EDI-translators
- Standards(e.g. EDIFACT,ANSI X.12)
-EBXML
-SET (Secureelectronic trading)
-WWW
Business Transaction
Trusted Third Parties
Stages
Supportfor
stages
Electronic market places• Provide matchmaking facilities• Provide standard price discovery
mechanisms• Facilitate payment and delivery
• E.g. Stock market!
EC is a part of a more general development
1. Production (efficiency) focused companya) Logistics, planning, etc.
2. Innovation focused companya) Research and marketing
3. Client focused companya) Internet, knowledge management, etc.b) Relation management
Development in BusinessFrom
operational excellence relational excellence
To
operational excellence
Products and info logistics
management staff
purchase R&D production marketingsales
directors
suppliers
customers
Relational orientedProducts and info logistics
directors
Marketingsales
production
R&D
purchasing
CRM is important
Developments in the supply chain
“The 5 Day Car”
CAR SHOWROOM
?
FINANCE HOUSE
CAR MANUFACTURER
ACCEPT ORDER
CONFIRM FINANCE
PRODUCTION PLAN
CONFIRM DELIVERY DATE
MRP/MRPII
SUPPLIERS
SEND ORDERS
PRODUCTION SCHEDULE
CONFIRM DELIVERYDATES/TIME
PARTS ARRIVE“JUST-IN-TIME”
PRODUCTION LINE
ELECTRONICWORK ORDERS
DELIVERYDETAILS
DELIVER TO SHOWROOM
“Co-operative Sales Training”Dynamic Design Team - IPR creators
certificationauthoritiesbanksproducers-suppliers
marketplace
producers-designersmarketplace
Open/light EDI
collaborativedesign
Lifecycle management
buyers-producersmarketplace
furniture buyer
Web/EDI
trust&
security
“From Forest to Chair”
‘New’ Business Modelsfrom pilots and actual business
Sing
lefu
nctio
n
Mul
tiple
func
tions
/in
tegr
ated
e-shop
e-procurement
info brokerage
collaboration platform
value chain integrator
third party marketplace
e-mallvirtual business community
Degree of innovation
Func
tiona
lin
tegr
atio
n
lower higher
value chain service provider
e-auction
trust services
Business Models - ExamplesSi
ngle
func
tion
Mul
tiple
func
tions
/in
tegr
ated
e-shop
e-procurement
info brokerage
collaboration platform
value chain integrator
3rd party marketplace
e-mall
virtual community
Degree of innovation
Func
tiona
lin
tegr
atio
n
lower higher
value chain service provider
e-auction
trust services
Industry.Net
SCS/Infomar
CitiusTradeZone
GEN/ICS
FedEx InternetshipMarshall on Internet
Amazon.com
MarshallNet/PartnerNet
Belsign
Yahoo
FleuropTravelocity
JAL
Key Issues
• Organisational problems– Electronic marketing– Added business value
• Legal problems– Trust– Compatibility of legal systems
• Technical problems– Interoperability
Commerce needs trust!
• Trusted product/company information• clear negotiation protocols• secure contracts• safe transactions (including payments)• logging of transactions
Trusted Third Parties
• System installed at Trusted parties• Provide trusted information• Procedure perspicuous and monitored• trusted payment system
Secure Electronic Transaction(SET)
• Standard developed by Visa and Mastercard• Electronic substitute for creditcards• Public key based• Has some privacy
Using SET
Alice Bob Shop
Internet
Want to buyCoat XYZ
Ok Alice,that’s $500
Send Coat XYZto Alice street;my Credit# is:
1234 5678 9100
Bank
Yes
Bob Shop knows too much about Alice!
Bank: hasAlice $500 Credit on #:
1234 5678 9100?
$ $ $
Alice Bob Shop
Internet
Bank
Order Info:$500, TransIDCoat XYZto Alice streetEncShop
Payment Info:$500, Hash(OI)My Credit# is:1234 5678 9100EncBank
$ $ $
Alice Bob Shop
Internet
Bank
Order Info:$500, TransIDCoat XYZto Alice streetEncShop
Payment Info:$500, Hash(OI)My Credit# is:1234 5678 9100EncBank
Can I have $500on Hash(OI)?
$ $ $
Exchange means translate!(Interoperability)
• Translate company/product info• translate messages• translate contract• etc.
Technologies in EC
• EDI• WWW• Multimedia• Work Flow Management• Agents• Electronic payment, smart cards, etc.• ...
Issues for CS
• Process modeling• Security and trust• Electronic market places• Knowledge management• Data mining (Customer response
management)
Process modeling
• Redesign procedures to fit customer focus• Check trustworthiness of procedures• Electronic contracts• Document management
Knowledge management• How to integrate all types of information?• How to manage the information? Who is
responsible?• Communication process more important
than production process!• Which information should be available for
whom?• Solutions through e.g. information agents
EC Applications
• Supply chain management• Home shopping• Remote banking• On-line marketing and advertising• Distant learning• Procurement and purchasing• Video on demand
Examples of EC (B-C)• Retail
– Internet bookshop
– CDNow
– Shopping malls
– Auctions
– Collective buying
Examples of EC (B-C)
• Finance
– ESI (stock market)
– Electronic banking
Publishing
Examples of EC (B-B) • Business to business support
– Maxtrad (business information)– MEMO (Mediating and Monitoring EC)– Secure contracts (ICC)– Bolero (electronic document support)
• Markets– Automotive industry (collective buying)– Retail world– Insurance private exchange of virtual products
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