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ENABLING TECHNOLOGY POSITION PAPER BPOL 579 James Thompson Nick Bowden Database management systems ("DBMS") control the organization, storage, retrieval, security and integrity of data in a database. By managing user read/write authorizations, the DBMS also allows concurrent access to the stored data by multiple users without corrupting the underlying data. Many experts believe that technological advances, as a result of the commercialization of the Internet, will lead to increasingly sophisticated customer requirements for data storage and management beyond the functionality offered by conventional RDBMS products. In recent years, the types and quantities of data required to be stored and managed has grown increasingly complex and includes audio, video, text and three dimensional graphics in addition to conventional character data I. Origins and Evolution of Database Technology The first databases were file oriented systems developed to computerize paper-based record keeping and operational functions. The searching mechanisms were sequential, in other words, starting with the first file every one had to be inspected until the desired information was found. Eventually, a limited random access model emerged based on indexing, for example, partitioning the database in to parts related to a specific attribute such as the first letter of ones last name. The limitations of this technology were data redundancy, data inconsistency, inadequate data manipulation, and interdependence between programs and data. The interdependence issue was of particular significance because program applications had to be custom designed and written for use with each distinct brand of database. The next breakthrough came in the form of a hierarchical database. Data relationships in each file were modeled as hierarchies or top down tree-like structures. Think of the breakdown of duties in a bureaucracy. Individual records in the each tree structure were tied together with pointers, and each record could be associated with an arbitrary number of records or children below it but only one record or parent above it. Think of a pointer as a hyperlink embedded in a web page, it is a pointer that takes you to another page. The deeper one moved into the tree the more specific the data would get. Unfortunately, not all relationships could be modeled as hierarchies which resulted in data loss and poor data manipulation. The advent of the network model changed the tree structure to a web structure. Every record in a file could be associated with an arbitrary number of other records. No distinction between parent and child record types. Individual records of each file were still held together by pointers. This database model still made ad-hoc queries difficult due to the pre-determined relationships defined by the pointers. Current databases use the relational model where all data is represented in tables, or relations, made up of rows and columns. The logical relationships between the tables facilitate ad-hoc queries by non-technical users. Data manipulation is based on logical characteristics rather than on physical pointers. Examples of relational database technology include Oracle, Sybase, and Informix. Today’s databases also are transparent to the user, as the application on a PC usually acts as the intermediary between the user and the database, therefore, usability of databases is much higher than in the past. Current technology also emphasizes the non-reliance on proprietary hardware and software with the goal of open systems and inter-operability. Object Database Connectivity (ODBC) software facilitates this inter-operability. Internet sites are created either statically or dynamically. In creating a static site, each page must be created and maintained individually, therefore, the larger the site the higher the maintenance costs. Each time a consumer visits a static web site they will see the same exact pages until the content is physically changed by the webmaster. Conversely, a dynamic Internet site requires the construction of a few template pages and the services of a relational database to customize each web page to fulfill specific consumer queries. The traditional way of creating web pages “on the fly” , as shown in the diagram below, is to use a Common Gateway Interface (CGI) to facilitate communication between the web database and the web server. The web server stores the template pages, and populates these pages with data from the web server. Queries are sent to the web server from the web browser and repackaged into CGI scripts or instructions which are relayed to the database server. The results of the database query are then sent to the web server which uses the data to populate the appropriate template page and serve to the end users web browser. Today, most e-commerce Internet sites are dynamically rather than statically created. The use of databases for e-commerce makes it easier to maintain a web site. It is much easier to add products for sale or update prices to one’s Internet site by updating a few data or object fields in a database than to reformat and re-post countless pages because of an incremental change. There is a much larger chance of error when updating a static site than when updating a dynamic site, because the data is spread out on a static site rather than centralized and organized on a dynamic site. I. Major Players The database software industry is estimated to generate $10 Billion in 1999 revenues. Although a majority of this revenue comes from traditional networked database management, an everincreasing focus has been applied to the database needs of e-commerce. Put simply, the demands of ERP systems are expected to fall as Y2K issues are addressed, and the potential of e-commerce has many database software companies trying to gain a foothold. Provided below are a list of some of the main players in this segment. Oracle: Product: Oracle 11, 8I, Oracle Intermedia According to Larry Ellison, CEO of Oracle, “nine out of ten e-commerce site are powered by Oracle databases.” The company supplies the databases for such web businesses as Amazon.com, Egghead.com and Excite. Oracle has made a big bet on the web. A long time advocate of distributed computing Oracle has leveraged its solid position in the ERP business and is now offering its database solutions accessible via the web. This enables the client to communicate easily with customers, partners, employees and suppliers. In directly targeting e-commerce customers, Oracle offers commerce products and applications developed to facilitate buy-side commerce, sell-side commerce, and customer service. Buy-side commerce products address non-production procurement, such as maintenance, repair and operations (MRO); selling, general, and administrative focus on improving relationships with customers, distributors, and brokers, for example, and address the delivery of services before and after the sale. Products addressing customer service provide for customized, unassisted sales and service. In addressing the multimedia needs of e-commerce, Oracle has tamed up with ISLIP Media to offer Oracle Intermedia to manage text, documents, images, audio and video. IBM: Product: DB2 & Net.Data In 1999 IBM regained #1 market share in enterprise-wide database software. For IBM its ecommerce solution centers around electronic presentation of goods and services, online order taking and bill presentment, automated customer account inquiries and online payment and transaction handling . The company has built up broad industry expertise working with banks, utility companies, governments, manufacturers, and merchants big and small. IBM offers commerce software solutions (Web servers, applications servers) Services for consulting, systems integration Integration/IFS relationship, Billing & payment server solutions Payments expertise through Banking ISU (wholesale/retail/payment instruments) In taking a one-stop shop approach to e-commerce, IBM’s Net.Data is an integral part of a group of IBM and IBM Business Partner products that delivers an end-to-end-solution for developing new business applications and redefining existing client/server applications for the Internet. With Net.Data, Web application developers can build applications that leverage the features and functions of DB2 databases, as well as the other open database connectivity (ODBC) data sources. Microsoft: Product: SQL Server 7.0 & Biz Talk In delivering e-commerce database solutions, Microsoft’s hope is to build on the success of company’s existing database management product SQL Server 7.0. Because it is designed to integrate with Microsoft Windows NT and Microsoft BackOffice, the company is trying to provide a full-service solution to Internet, intranet, and electronic commerce needs. Because of its ability to “bundle” products, Microsoft has a cost advantage over its rivals. While competing head-to-head with SQL, rivals must also simultaneously develop their products to work on the Windows NT platform, creating a unique competitive environment. Recently, Microsoft has announced a new service called BizTalk, a product solution enabling small businesses to quickly build a site, promote their business and sell their products on the Web. For the IT manager, this service promises a more scalable and robust commerce platform utilizing the Windows 2000 Active Directory & Microsoft SQL 7.0. Informix: Product: Dynamic Server, iReach & iSell Long a second-tier player, Informix, like many of its competitors, has recognized the competitive barriers in the traditional ERP market and has refocused itself on the e-commerce market. Informix has created a new division, iInformix, focused exclusively on delivering industrial strength, database-driven solutions for the Internet. Informix is trying to leverage its expertise in transaction engines (OLTP) and data warehousing solutions to create end-to-end Web and ecommerce solutions that can be implemented rapidly. Informix’s product offering includes iReach a web site solution for Internet or intranets, providing a single repository to maintain and distribute content. By enabling content owners to easily publish and maintain their own content, Informix claims iReach can reduce the cost of maintaining Web sites tenfold. Informix iSell, Informix's electronic storefront solution, integrates award-winning database and application server technology with e-commerce software, tools, consulting, and services to provide a complete, rapidly deployable e-commerce solution. As an additional data mining supplement, iSell enables the merchant to use data on customer history to sell goods more effectively. Sybase: Product: Adaptive Server Enterprise 11.5 Not unlike its competitors, Sybase’s strategy is to leverage its existing strengths in enterprise data management and enterprise application development to focus on delivering solutions in three markets: mobile and embedded computing, business intelligence and Internet applications. Sybase’s historical strength has been in the financial services industry, and as that industry continue to expand online the company wants to be the provider. Management recognizes that although they have experienced some setback in the ERP database strategy, financial services firms with existing systems have high switching costs. As this industry further embraces the net as an viable business model, Sybase hopes to build on existing relationships and solve their ecommerce needs Through its combination of its application development tools, application servers, industry specific applications servers, database servers, and middleware, Sybase (Like many of its competitors) enables companies to design, develop and deploy enterprise Internet applications that can integrate with various legacy and mainframe-based data sources. II. Industry Impact Most experts agree that any company contemplating a move online must address the associated database requirements. In order to adequately leverage the medium, database software is critical. Instead of listing each industry and the related impact of database software for e-commerce, we have provided two examples (business-to-consumer and business-to-business) of company’s that have had to address the database needs of their e-commerce strategies IBM & Duckhead Clothing Inc. In November of 1998, Duck Head Apparel Company, Inc., a leading supplier of khakis, golf shirts and sport clothing, announced that it was now selling its casual sportswear online at www.duckhead.com. Duckhead worked with IBM to completely engineer the company’s online launch. The company’s internet strategy has provided Duck Head with an additional storefront without the cost of a physical store outside of its traditional geographic area. Customers can browse an initial selection of men's and boy's pants, golf shirts and T-shirts, place orders, and arrange for shipping. Duck Head will offer its entire catalog of more than 2,000 products on its Web site. Future plans call for the accommodation of international orders, enabling a basically regional player to become a force in the global marketplace. The Duck Head web site design incorporated IBM software, hardware and services, including IBM's commerce server software, IBM Net.Commerce and IBM Net.Data. The site is supported by two IBM AS/400 servers: one that hosts the Web site and stores the Duck Head catalog in an IBM DB2 database for AS/400, and one that handles the EDI transactions and back-end production. Informix & Express Scripts/ValueRx Express Scripts/ValueRx is a medical management company that develops patient-focused clinical programs for employers, managed care organizations, insurance carriers, public sector clients, unions, and workers compensation programs. These programs help improve patient care while containing overall healthcare costs. The company chose Informix Dynamic Server to build its online transaction processing (OLTP) system called VNet, which today processes a large percentage of all Express Scripts/ValueRx prescription claims on line. VNet communicates with over 50,000 pharmacies to manage the claims adjudication process, validating as many as 250,000 prescription claims a day (one to two seconds to process each claim) — 80 million claims per year—checking claims against records held in the Informix database to authenticate contract numbers, confirm patient benefits, and calculate payments. The company believes it has achieved this by extending its Informix-based information architecture to include an enterprise data warehouse and multiple data marts using a traditional hub and spoke architecture. Specifically, the company has chosen to standardize on Informix Dynamic Server running on HP 9000 V-class servers, using INFORMIX®-4GL and Sagent tools for data mart development. III. Outlook for the Future The outlook for the future of database technology hinges on the advances made in e-commerce areas such as xML and bandwidth. The emergence of xML and object database technology has the potential to speed data queries, increase the variety of data that can be accessed, and synchronize information exchange between partners and within the company. The ease and speed of information exchange between a company and its supplier(s) has implications on the efficiency of supply chain management practices. The advent of xML, a markup language similar to but more powerful than HTML, will hasten the inclusion of the web server into the web database. XML will render the CGI layer redundant, as the web database will have the ability to understand queries generated by xML. Therefore, the elimination of the CGI layer coupled with the incorporation of the web server into the web database will result in faster and more efficient responses to queries. As bandwidth increases the demand for web pages with more text, graphics, data files, applets, audio streams, and multiple video streams. Bandwidth is almost exclusively touted at the barrier here, but the ability of the database to store, search for and distribute such diverse content to multiple users in a timely manner is arguably as constraining a bottleneck. Advances in object database technology, the ability of a relational database to manipulate data as well as objects, will be of paramount importance to the e-commerce community. The software company that provides the best object solution and service will become the dominant database provider in the Internet space.