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MIS 301
Information Systems in Organizations
Dave Salisbury
[email protected] (email)
http://www.davesalisbury.com/ (web site)
What We Will Cover:
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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)
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Your investment of time and effort in this course will
result in your being able to answer these questions:
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How has e-commerce evolved over the years to provide
ever-increasing business value?
Why do many businesses still rely on first generation ecommerce 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
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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
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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.
E-commerce Generations
First Generation: Establishing a Web
Presence
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Basic technologies are still used:
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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.
Client/Server Network
Web Browsers
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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
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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
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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.
HTML Example
Second Generation: Providing
Interaction
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Providing interaction between the Web page and user requires
dynamic content based on user input and programming
instructions.
The process is:
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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
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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
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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
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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.
A Cookie File
Making the Client-Side Dynamic and
Interactive
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To make the interaction with the client machine be dynamic,
some sort of programming is required. This can occur on the
client-side or the server-side.
Scripting languages like JavaScript are built into the Web page
to add dynamic interaction such as data validation.
For more complex tasks, specialized components such as
Microsoft’s ActiveX technology, Java applets, and browser plugins are used.
ActiveX technology is used for sharing information among
different technologies.
An applet is a small program that a browser can download and
execute.
A browser plug-in is a small software module that can work with
the browser.
Server-side Programming
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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:
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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
Server-Side Technologies
Server-side
Technology
Programming
Languages
Description
GCI (Common
Gateway Interface)
Perl
First server-side technology
often written in Perl; provided
first standards
PHP (PHP Hypertext
Processor)
PHP
A free scripting language
used primarily on Linux Web
Servers
Microsoft .Net
VB .Net, CSharp .Net, and
others
Microsoft’s family of
development languages. ASP.
NET is used
Java Servlets and
Javaserver Pages
Java
Java servlets are written in
Java and execute on server
faster than CGI.
The n-Tier Infrastructure
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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.
A 4-Tier Structure
Carrying out a Transaction
1. An HTTP request for a Web page is sent from your
browser.
2. Web server receives request and determines how to
respond (almost always sending a Web page.)
3. If request requires a dynamic response, Web server
acts as controller routing messages between client
and application server.
4. When needed, the database server is queried.
5. Results of an executed application are formulated
into a Web page.
6. The Web server includes dynamically generated
page in HTTP response which is sent to browser.
Third Generation: Supporting
Transactions
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In the third generation of e-commerce,
businesses recognized that they must
deal with three issues to be successful:
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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
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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?
The Search Engine Process
Order and Payment Systems
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All e-commerce sites must have components for processing
orders and accepting payments.
The four primary components of a typical e-commerce site are:
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The
The
The
The
shopping and ordering system
merchant account
payment gateway
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
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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 ecommerce site to the banking system.
The processor accepts data from the shopping cart, formats it,
and enters it into the banking network.
Linking the E-commerce site to the
Banking Network