Commerce (8000 B.C.) BUYER LOCATES SELLER SELECTION OF GOODS NEGOTIATION SALE PAYMENT DELIVERY POST-SALE ACTIVITY INFORMATION PHYSICAL
Electronic Commerce (2002) SOME TECHNOLOGIES USED: SOME INFORMATION GATHERED: SEARCH ENGINE SEARCH BEHAVIOR BUYER LOCATES SELLER ON-LINE CATALOG BROWSING BEHAVIOR RECOMMENDER AGENT CUSTOMER PREFERENCES CONFIGURATOR SELECTION OF GOODS EFFECTIVENESS OF PROMOTIONS SHOPPING BOT BARGAINING STRATEGIES AGGREGATOR PRICE SENSITIVITIES INTERNET NEGOTIATION AUTOMATED AGENTS PERSONAL DATA TRANSACTION PROCESSOR SALE MARKET BASKET DATA INTERCHANGE CREDIT/PAYMENT INFORMATION CRYPTOGRAPHY PAYMENT E-PAYMENT SYSTEMS DELIVERY REQUIREMENTS DELIVERY TRACKING AGENT ON-LINE PROBLEM REPORTS ON-LINE HELP POST-SALE ACTIVITY CUSTOMER SATISFACTION INFORMATION BROWSER SHARING FOLLOW-ON SALES OPPORTUNITIES PHYSICAL INTERNET TELEPHONY
The Electronic Marketplace BUYER LOCATES SELLER DIRECT SELL SELECTION OF GOODS CREDIT FILE BID PREP NEGOTIATION SALE ORDER TRACKING SECURE PAYMENT PAYMENT DELIVERY DELIVERY DATA ANALYSIS POST-SALE ACTIVITY CRM INSTALL
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 • Infrastructure • Electronic payments • Wireless technologies • Content delivery • Search engines • Intelligent agents • Access security • Data mining • Data interchange • Mass personalization • Security
E-Commerce Infrastructure • What worldwide structure is required to support e-Commerce? • 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 • 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
Server 2 responds to client 1 2 Client 1 requests service from server 2 1 Client 2 requests service from server 3 The Internet 3 Server 3 responds to client 2 Client/Server Architecture • 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
Network Topologies • More than two computers causes complications: • 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 1 2 4 5 3 LAN = LOCAL AREA NETWORK LAN BUS TOPOLOGY
Routers Routing Machine 2.16 Machine 1.35 wants to send a packet to Machine 3.249. Routers determine the path the packet will take. Machine 3.249 B A Machine 1.35 Router A can send the packet either way 4.1 5.9 NETWORK 4 & IT’S ROUTER NUMBER OF ROUTES ROUTING STATISTICS
Routers NORTEL 3COM CISCO
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.
http://www.site.com/index.htm Protocol Domain Name Web Page Verisign.com How can you get the URL that you want?
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 • 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 • 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: • Bozdogan@mercy.edu • 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 184.108.40.206. 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 • 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 2 Server TIER 1 TIER 3 Applications TIER 4 Database 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? • 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: • 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 Catalogs Quotations RFPs Purchase Orders Letters of Credit 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 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 • Automated clearing and settlement systems • Smart cards • Electronic cash, digital wallets • Micropayments • Electronic delivery of goods • Electronic bill presentment and payment • BlueGill
Intelligent Agents 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
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 • customers themselves • cookies • external databases • data matching • DoubleClick, etc. • Digital rights management tools (what we read and how much) • library records
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 • 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 • 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: • 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 OFFICEPRODUCTS SPORTING GOODS HOUSEWARES PRESENTATION ITEMS KITCHEN HUNTING GOLF LASER POINTERS TOASTERS RIFLES CLUBS LASER 1 LASER 2 LASER 3 CALLAWAY