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Electronic Commerce: An Overview

This overview explores the intersection of telecommunications technology and electronic commerce (EC) and how it enhances linkages among business functions such as design, production, and distribution. It examines the traditional use of Electronic Data Interchange (EDI), focusing on data exchange between companies, standardized business documents, and formats that support cost savings and efficiency. Additionally, it highlights critical security measures including authentication and encryption, as well as the evolution of media convergence and customer presentation in the digital landscape.

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Electronic Commerce: An Overview

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  1. Electronic Commerce:An Overview John R. Durrett ISQS 6343

  2. EC • The use of telecommunications technology to facilitate the linkages among the functions of commerce. • Design, production, display, acquisition, & distribution • Traditionally meant EDI

  3. EDI acceptance driven by Information Processing Needs • Intra & inter-company data flows • direct computer to computer information exchange • structured business documents • Standardized formats • Cost savings, Speed, Error reduction, Security

  4. EDI standardization process • Company agreement • applications • format • communication link • EDI software • translate data to/from EDI standard format • Begin exchange process

  5. General Standards required • Standard bodies (ANSI, EDIFACT, Merg) • Applications • General Business Transaction sets Invoice Payment Order/Remittance Advice Price Sales Catalog Request for Quotation Response to RFQ, etc • Transaction set specifications • Transmission & Addressing standards

  6. EDI Purchase Order GS*PO*612410984*3134346666*8706171232*00223*X ST*850*000123 BEG*00*SA*3655167*00*00*870617*12341234*AC N1*BY*MFG CO N2*ST Simone*MO PER*BD*A. Mittenhaur N1*SF*ABC ENGINES N2*Harmony*VA PO1*1*100.00*EA*290.50*CA*PI*123*VP*1234

  7. BEG*00*SA*3655167*00*00*870617*12341234*AC • BEG -begin segment • 00 -transaction purpose • SA -po type • 36551671 -po number • 01 -release number • 00 -change order seq. • 870617 -po date

  8. Broader EC boundaries represents expansion of standards • Consumer Presentation facilities • Information gathering tools • Interface & messaging standards • Authentication & security framework • Transport infrastructure

  9. Transport • on-line, virtual private networks • cable, wireless, ATM, gigabit ethernet • CD-ROM, DVD • requires standardized network protocols • Technology convergence • Telephone, TV, Computer, set top box • Politics of the “last mile”

  10. Authentication & Security (State of Web Commerce) • Ensuring private communications • Verification of message content • Authentication of server & client • Authentication of content author • Requires: • symmetric & Asymmetric encryption • secure hashing algorithms • Certificates and Trust Hierarchies

  11. Interface & messaging • email • web • The future of client - server • cgi • applets & servlets • CORBA/DCOM • telephony

  12. Information gathering • indexes • web searches • bots, spiders, brokers, wanders, etc. • Collaborative filtering • www.firefly.com • information brokerages

  13. Consumer presentation • Media convergence • multimedia, vrml, video-on-demand • more natural communication than EDI • targeted to specific audiences • Barnes & Noble on-line • www.Amazon.com • Ubiquitous access

  14. Social standards • privacy • legality • digital documents vs. Fax • cultural mores • bandwidth availability

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