MIS 301 Information Systems in Organizations. Dave Salisbury firstname.lastname@example.org (email) http://www.davesalisbury.com/ (web site). What We Will Cover:. The Stages of E-Commerce First Generation E-Commerce Technologies: Establishing a Web Presence
MIS 301Information Systems in Organizations Dave Salisbury email@example.com (email) http://www.davesalisbury.com/ (web site)
What We Will Cover: • The Stages of E-Commerce • First Generation E-Commerce Technologies: Establishing a Web Presence • Second Generation E-Commerce Technologies: Providing Interaction • Third Generation E-Commerce Technologies: Supporting Transactions • Fourth Generation E-Commerce Technologies: Transforming Process
Student ROI (Return on Investment) • Your investment of time and effort in this course will result in your being able to answer these questions: • How has e-commerce evolved over the years to provide ever-increasing business value? • Why do many businesses still rely on first generation e-commerce technologies? • How do the second-generation e-commerce technologies provide businesses with more effective customer relationship management? • How do the third-generation e-commerce technologies support business transactions. • How the fourth-generation e-commerce technologies contribute to strategic alliances.
The Stages of E-commerce • Previously you were introduced to the applications of e-commerce. Now, you will be introduced to the underlying technologies support e-commerce. • In its short history, e-commerce has gone through several distinct generations of growth.
Four Generations of E-commerce • First generation: static content such as company information, online marketing, and company brochures. • Second generation: dynamic content where Web page changes depending on a number of factors such as time and date, user profile, or browser location. • Third generation: growth in businesses’ ability to support transactions on the Web. • Fourth generation: increasing integration with external partners on the Web including allowing transactions between Web applications.
First Generation: Establishing a Web Presence • Basic technologies are still used: • Client/server networks: the networks over which data travel. • Browser: the application software that lets users request and view Web pages. • HTTP protocol: the standardized rules for exchanging data over the Web. • HTML: the language that guides the display of a requested page.
Web Browsers • A Web browser is the software that allows you to navigate the Web and to view content you find there. • It responds to the URL you enter or the hyperlink you click by displaying a hypertext-based file. • Hypertext organizes content into units that are connected using associations called links. • Browsers typically include a graphical user interface (GUI) that make them easy to use. • Browsers have multimedia capabilities that enhance the information a business conveys. • Browsers all work similarly presenting a common interface to all users.
HTTP: Hypertext Transfer Protocol • HTTP comprises a set of rules for formatting and transmitting messages over the Web. • HTTP is connectionless and stateless meaning it forgets about requests and responses after they are complete. • This feature of HTTP requires work-arounds to support e-commerce.
HTML: Hypertext Markup Language • Hypertext Markup Language (HTML) is the primary language for creating Web pages. • The browser interprets the HTML through the use of tags which are used to format the content of the Web page. • The tags,enclosed in angle brackets (< and >) mark the placement and appearance of page components.
Second Generation: Providing Interaction • Providing interaction between the Web page and user requires dynamic content based on user input and programming instructions. • The process is: • Obtain input data • Pass data to Web server • Hold data in memory • Execute the programming instructions to process the data • Input data comes from several sources • Web page header information about user • Server resources like the system clock • Stored data about the user from a cookie • Data input using an HTML form
HTML Forms • The primary method of data input into a Web site is the HTML Form which is composed of one or more HTML controls. • These controls must match the data needs of the transaction and minimize chance of data errors.
Storing Data on the Client Side • To be able to carry out e-commerce transactions, it is necessary to store data about the customer on the client side. • One way to do this is to use a cookie which is small bit of data stored on the client machine and passed back and forth between it and the Web server. • Typical data on a cookie include information about the client machine, the domain name of the server that created it, and so on. • When data remain on the client machine for a period of time, this is a persistent cookie. • Cookies do create privacy concerns when they are used to track browsing habits.
Server-side Programming • When programs run on the Web server to provide dynamic interaction, this is known as server-side programming. • It is more powerful than client-side scripting and allows the Web page owner to retain control over the programs. • With server-side programming, a business can: • Deliver content that it customized for each user. • Dynamically modify content for any page. • Access data stored on a server-side database and send it to the client’s browser. • Take action on queries and data sent from client. • Provide access control and security for a Web site • Optimally manage traffic to the site
The n-Tier Infrastructure • An e-commerce system is composed of various layers or tiers with the number of tiers depending on what components are used. • A typical system is the 4-tier system with a client tier (you and your browser), a Web server tier, an application server tier, and a database server tier. • For a really large system, there will be multiple computers set up to handle the processing at each server tier.
Carrying out a Transaction • An HTTP request for a Web page is sent from your browser. • Web server receives request and determines how to respond (almost always sending a Web page.) • If request requires a dynamic response, Web server acts as controller routing messages between client and application server. • When needed, the database server is queried. • Results of an executed application are formulated into a Web page. • The Web server includes dynamically generated page in HTTP response which is sent to browser.
Third Generation: Supporting Transactions • In the third generation of e-commerce, businesses recognized that they must deal with three issues to be successful: • Making it possible for customers to find information about companies, products, and services. • Making it possible for customers to order and paying online for goods and services. • Providing secure and private transactions.
Search Engines • Internet search engines make it possible for customers to find information—probably too much information • When you search the Web, you are really searching a database that was created from previous Web searches. • The main difference in search engines is how the database of Web locations is created and organized. • Web sites are found by a Web crawler and are submitted by humans. • An important consider is how the database organizes or indexes the Web data. Which pages are shown first when you submit search criteria?
Order and Payment Systems • All e-commerce sites must have components for processing orders and accepting payments. • The four primary components of a typical e-commerce site are: • The shopping and ordering system • The merchant account • The payment gateway • The security system • Most e-commerce systems use a secure HTML order form or an in-house shopping cart system. • Smaller businesses often use third party merchant accounts like that available from PayPal. • The shopping cart system is the most popular e-commerce system for larger businesses where a customer wants to buy multiple products usually using a credit card.
Merchant Accounts • An important aspect of any e-commerce systems is a merchant account which is a bank account that allows the merchant to receive the proceeds of credit card purchases. • A secure gateway provider is a company that provides a network to process encrypted transactions from a merchant’s Web site. It then passes the transactions on to the issuing banks for credit card approval. • A secure gateway provider will usually provide a payment gateway and a processor. The payment gateway links the e-commerce site to the banking system. • The processor accepts data from the shopping cart, formats it, and enters it into the banking network.