Matakuliah
Tahun
Versi
: F0662/ Web Based Accounting
: 2005
: 1/0
Pertemuan 3
The History and Technical Aspects of
eBusiness
1
Chapter 8: Electronic Data Interchange (EDI)
2
EDI trade cycle
Search
Pre-Sale
Negotiate
Order
Deliver
EDI
Execution
Invoice
Payment
After Sales
Settlement
After Sale
• Regular, repeat transactions between
commercial trading partners
• Examples:
– Supermarkets replenishing stocks
– Vehicle assemblers purchasing components
3
EDI definition
• Summarised as:
‘Paperless Trading’
• Defined as:
‘The transfer of structured data,
by agreed message standards,
from one computer system to
another,
by electronic means.’
4
EDI definition
Structured data
• Standardised Document
– e.g. Order/Invoice
• Codes
– e.g. Product Code/Customer Code
– (preferably using a common standard
e.g. ANA/UPC)
5
• Values
EDI definition
Structured data – an order
ORDER
ORDER
From:
From:
To:
To:
J.J.Smiths
and Sons
Smiths and Sons
Packaging
PackagingSolutions
Solutions
257
Manchester
257 ManchesterRoad
Road
Blackburn
Blackburn
Lancashire
Lancashire
Address
AddressCode:
Code:1149646
1149646
Pens
Pensand
andThings
Things
123
123London
LondonRoad
Road
Kendal
Kendal
Cumberland
Cumberland
Address
AddressCode:
Code:6464326
6464326
Order
OrderRef:
Ref: AC6464
AC6464
Order
Date:
15.03.2000
Order Date: 15.03.2000
Qty
Qty
Description
Description
Product
ProductCode
Code
1,600
1,600
1,200
1,200
Case:
Case:Executive
ExecutiveElite
Elite––Red
Red
Case:
Case:Executive
ExecutiveElite
Elite––Silver
Silver
PT-1073-R
PT-1073-R
PT-1073-S
PT-1073-S
end
endofoforder
order
6
EDI definition
Agreed message standards
• Sectorial standards
e.g. Odette
• National standards
e.g. ANSI X12, Tradercoms
• International standards
i.e. EDIFACT
7
EDI definition
Agreed message standards – EDIFACT example
UNH+000001+ORDERS:2:932:UN'
UNH+000001+ORDERS:2:932:UN'
BGM+220+AC6464'
BGM+220+AC6464'
DTM+4:20000305:102'
DTM+4:20000305:102'
NAD+BY+6464326::91'
NAD+BY+6464326::91'
NAD+SU+1149646::91'
NAD+SU+1149646::91'
UNS+D'
UNS+D'
LIN+1++PT-1073-R:VP'
LIN+1++PT-1073-R:VP'
QTY+21:1600'
QTY+21:1600'
LIN+2++PT-1073-S:VP'
LIN+2++PT-1073-S:VP'
QTY+21:1200'
QTY+21:1200'
UNT+11+000001'
UNT+11+000001'
… for the example order.
8
EDI definition
From one computer system to another
• EDI messages are (properly) sent:
– From one computer’s application,
e.g. the customer’s Purchasing System.
– To a second computer’s application,
e.g. the supplier's Order Processing System.
– There is no need read or re-key the data into
9
EDI definition
By electronic means
• Transmission by:
– data communications network
– or possibly physical transfer of:
• magnetic tape or
• floppy disc
10
Benefits of EDI
Shortened ordering time
a posted order …
print Ô
envelope Ô
post room Ô
Ó postal service
Ó supplier
Ó post room
key-into order processing system
Customer
Supplier
… say 7 days between two large organisations
an EDI order …
Customer
Î EDI transmission Î
Supplier
… one day, one hour, as quick as you like
11
Benefits of EDI
Cutting costs
• Stationery
• Postage
• Staff:
– order entry
– invoice matching
– payment checking
• the principle saving is staff costs
t ff
i
b
i ifi
12
t
Benefits of EDI
Elimination of errors
• no keying errors
• (but no manual check for silly mistakes)
Fast response
• immediate acknowledgement and status
report
• (available but not always implemented)
13
Benefits of EDI
Accurate invoicing
• automatic matching to orders
• elimination of queries and delays
EDI payments
• rapid settlement
• automatic matching to invoices
14
Benefits of EDI
Reduced stock holding
• Just-in-time for manufacture
• Quick response supply for retail
• Less (or no) cost of stock in hand
• Less (or no) warehousing costs
• Elimination of double handling of goods
• Less damage / deterioration of stock
15
Cash flow
Benefits of EDI
Business opportunities
• Access to Customers that require EDI
Customer lock-in
• Switching costs – setting-up an EDI
system with a new supplier
16
Chapter 10: EDI and business
17
Organisations that use EDI
• Bhs
– UK and European multiple apparel retailer.
– Bhs deals with about 400 suppliers using EDI.
• Lucas Rist
– Manufacture the wiring loom for car maker.
– Confirmed EDI orders for delivery to track
side within 10 hours.
• TeleOrdering
– The EDI system for the UK book trade
18
EDI trading patterns
• Hubs and Spokes
– The Hub: the major manufacturer or retailer
– Spokes: suppliers to the hub.
• EDI can be a condition of trade:
‘Therefore, when it [the Hub] says, “thou
shall trade electronically”, the suppliers
have little option but to reply “anything you
say, Sir”.’
EDI or DIE
19
EDI trading patterns
Hubs and Spokes
Spoke
order
Spoke
order
invoice
Hub
invoice
order
Spoke
invoice
order
invoice
Spoke
20
EDI trading patterns
Overlapping user communities
Super
Food
Top
Pop
Best
Bread
Freshest
Fruit
Sava
Store
Save on
Food
Nuts
Now
Mighty
Meat
Very
Veg
Nan’
Ham
21
EDI trading patterns
Extended supply network
Super
Food
Top
Pop
Best
Bread
Freshest
Fruit
Ready
Raisin
Sava
Store
Save on
Food
Fred’s
Flour
Nuts
Now
Mighty
Meat
Avril’s
Apples
Very
Veg
Nan’
Ham
Pete’s
Pears
22
EDI trading patterns
Wholesaler network
Andy
Agent
Instant
Insurance
Kent
Council
Benny
Bank
Sue
Shop
Henry’s
Office Supply
Wholesale
Penny’s
Pens
Pete’s
Paper
Pam’s
Pencils
23
EDI trading patterns
Open User Community
• Networks:
– Trading partners use differing VADS (possibly
in different countries).
• EDI Standards:
– Trading partners using differing EDI
standards.
– Hubs defining subsets or dialects of EDI
standards.
• Product Coding:
24
EDI transactions
EDI Trade Exchanges
• The main execution and settlement
exchanges of the trade cycle are:
– The Customer sends an Order to the
Supplier.
– The Supplier sends the goods and a Delivery
Note.
– The Supplier follows up the delivery note with
an Invoice.
– The Customer makes payment against the
25
Invoice and sends a Payment Advice.
EDI transactions
EDI trade exchanges
Customer
EDI
Supplier
order
delivery note
invoice
payment
26
EDI transactions
Order
• The order (purchase order) is a contract
for one specific consignment of goods.
• It specifies:
– What is wanted (product code)
– In what quantity (quantity and unit of issue)
– Where it is to be delivered (delivery address
code)
– Who will pay (invoice address code)
– etc.
• Also needed – the amendment orders
27
EDI transactions
Delivery Note
• Goods arriving at a customer’s door should have
documentation to indicate who they are from
and why they have been sent.
• It normally specifies:
– The product and quantity
• It should specify
– The order it fulfils
• The delivery note can be sent by EDI. This
saves:
T
i
i
h d li
d
il
28
EDI transactions
Invoice
• When goods or services have been
delivered, the supplier issues an invoice.
• This says:
– What has been supplied
– For which order(s)
– Total cost (which we would now like paying)
• Invoices need checking against the
original orders and deliveries EDI
29
EDI transactions
Payment and Payment Advice
• With EDI, both payment and payment
advice can be electronic:
– Payment can be sent to the bank either using
an EDI payment message or EFT system
(BACS in the UK)
– The payment advice can be sent to the
supplier and is readily matched to the
30
Alternative EDI trade cycles
Order Message:
• Delegated Ordering
– Responsibility of maintaining stocks is given
over to the supplier
• Self Invoicing (self billing)
– The customer pays for goods received without
an invoice being sent.
• Invoice Only
– Ordering is informal but invoicing is EDI
31
EDI adoption and EDI maturity
Business System Evolution
Business
Applications
Integrated Business
Systems
Inter-organisational
Systems
Internet enabled
Systems
32
EDI adoption and EDI maturity
EDI Maturity
Discovery
Introductory
Integration
Operational
Strategic
Innovative
33
EDI adoption and EDI maturity
EDI Maturity
• Discovery Stage
• An organisation choosing to adopt EDI to:
– Gain competitive advantage
– Solve an administrative problem
– Copy competitors who are adopting EDI
• An organisation having to adopt EDI
b
i ifi
t
t
i i t
34
EDI adoption and EDI maturity
EDI Maturity
• Introductory Stage
• Organisations setting out on the EDI path:
– Start with a pilot scheme.
• This stage:
– requires investment.
– Does not result in any cost saving or
ffi i
i
35
EDI adoption and EDI maturity
EDI Maturity
• Integration Stage
• Interface the EDI software with the
business application:
– Messages can be transferred electronically
and automatically between the two systems.
• This stage:
Often expensive (writing interface system)
36
EDI adoption and EDI maturity
EDI Maturity
• Operational Stage
– A significant number of trading partners
and/or commonly used trade transactions are
converted to EDI – a ‘critical mass’.
– The volume of electronic trading gives cost
savings – the staff dealing with manual
transactions can be redeployed.
37
EDI adoption and EDI maturity
EDI Maturity
• Strategic Stage
– The opportunity to make changes to
established business practice.
– For example:
• Revising the sequence of trade documents.
• Just-in-time (JIT) manufacture
• Quick response supply.
38
EDI adoption and EDI maturity
EDI Maturity
• Innovative Stage
– The possibility of changing the nature of
the product or the provision of new
services.
– Example are:
• Producing cars to order
(as opposed to producing for stock).
• Bicycles built to a customer specification.
39
IOS and industry sector organisation
(Inter-organisational System)
• EDI has, for many sectors, becoming
‘the normal way that business in done’.
• The closer co-operation between
customer and suppliers of which IOS is
a part is also having a subtle effect on
the market. It is argued that it is no
longer just a manufacturer or a retailer
that is competing for the customer but40
it is these companies in conjunction
IOS, EDI and Internet e-Commerce
• EDI and Internet e-Commerce
complement each other:
• Internet e-Commerce provides for
searching for products and for once-off
purchases.
EDI
• EDI is an application to application
interface for repeated and standardised
Internet
transactions.
e-Commerce
Materials
Supplier
Product
Supplier
Manufacturer /
Retailer
Customer
41
Chapter 13: The Internet
42
The Internet
• ‘The web is a big place, and tens of
thousands of people have put hundreds of
thousands of hours into making it
enjoyable. The vast majority of them
haven’t made any money from their work
yet, and many did it for the joy of starting
something new.’
(Hoffman, 1995)43
The Internet
• The Internet is a strange phenomenon:
– It had its origins as a military project in 1969;
– It was adopted by the research and academic
community;
– Became the tool (or toy) of computer nerds
around the world;
and then:
– it became the engine that, it is claimed, is to
propel the world into the information age and
the twenty-first century.
44
The Internet
• The Internet is an interesting
phenomenon:
– Nobody owns it.
– Technically it is defined by its communications
protocol:
• Transmission Control Protocol/Internet Protocol
(TCP/IP).
– At another level it is defined by:
• The people who use it – individuals, institutions
and companies that make information available,
send messages, access web sites and, in the case45
of e-Commerce, buy and sell.
The development of the Internet (1)
• The origins of the Internet are commonly
traced back to a US military project, the
ARPAnet:
– Commissioned in 1969.
– Explored packet switching technology (to
ensure resilience in the case of attack).
• Further early developments:
– CSNet (Computer Science Network) – 1981.
– Military split from the ARPAnet – 1983.
46
– JANET, Joint Academic Network (UK – 1984).
The development of the Internet (2)
• The TCP/IP protocol was established
in 1982:
– Introduced on the ARPAnet in 1983.
– Application protocols used in TCP/IP
include:
• File transfer system (FTP),
• e-mail protocol (SMTP),
• Remote login facility (Telnet).
– Nodes on network identified by IP
Address.
• The World Wide Web can be traced
back to 1989:
I iti ll d
l
d CERN
47
The development of the Internet (3)
• Other developments:
– Server software e.g. Apache.
– Common Gateway Interface (CGI)
– e.g. Perl programs.
– Web Programming, e.g. using JAVA
• Size of the web:
– 1994 – aprox 500 web sites.
– 1995 – nearly 10,000 sites
– and it grows and grows.
48
TCP/IP (1)
• Transmission Control Protocol/Internet
Protocol – TCP/IP.
– packet switching protocol:
• Messages are split up into segments (packets)
with:
– Source and destination addresses
– A package sequence number
– Other header and trailer information
• The route a packet takes through the
network is determined within the network
49
TCP/IP (2)
• Transmission Control Protocol/Internet
Protocol – TCP/IP.
– TCP provides the transport protocol.
– IP provides the routing mechanism.
– IP addresses have this form 192.9.1.20.
– Used for the sending network (netid)
and the destination computer (hostid)
– Port number for the application, e.g. 80 for the
WWW.
– The TCP/IP protocol stack has five layers:
• Application Layer
• Transport Layer
• Network Layer
50
TCP/IP – Application Layer
• The application is the program that
initiates the transfer (user’s own program,
application package or TCP/IP
applications)
• FTP
• SMTP
Protocol:
• Telnet
File Transfer Protocol:
Simple Mail Transfer
Remote login facility.
51
• The message, IP address and port
number are passed to the transport layer
TCP/IP – Transport Layer
• TCP establishes a logical connection
with the receiving computer and
determines the size of the segments to
be sent.
• TCP then divides up the message into
segments and attaches a header
specifying:
– The source port
– The destination port
– Segment sequence number
52
• UDP is an alternative to TCP that is
TCP/IP – Network Layer
• Responsible for routing the packet
from source station to its final
destination station, specified by the
MAC address.
• If the MAC address is not already
available then:
– An ARP (Address Resolution Protocol)
request is broadcast to the network
– The machine with that IP address
responds with its MAC address.
53
• The Network Layer may fragment the
TCP/IP – Data Link Layer
• Interface with the network to be used, e.g.
Ethernet, or X25.
• The network protocol will typically add its
own header (Nh) and trailer (Nt) that
incorporate the MAC address.
• The packet is then passed onto the
medium, the physical network layer.
54
TCP/IP – Physical Layer
• The cables used for transmission.
55
TCP/IP Protocol
Application Layer
FTP, SMTP, Telnet
or application,
DNS / WINS
server
IP address
port number
data message
Transport Layer
(TCP or UDP)
IP address
TCP head data packet
Network Layer
Target
ARP’d
IP
MAC Addr
IP head
TCP head datagram
Data Link Layer
Nh IP head
Ethernet, etc.
TCP head datagram
Nt
Physical Layer
56
Internet Components
• Client
– World Wide Web
– e-Mail
• Internet Service Provider
• Server
– Web Server
– Mail Server
• Intranets
57
• Extranets
Governance of the Internet
• Co-ordination and development of the
Internet is provided by a number of
voluntary committees.
• These include:
– Internet Society
– Internet Engineering Task Force
– Internet Research Task Force
• The whole arrangement works well.
58
Uses of the Internet
• Personal Messaging (e-Mail)
• Data Interchange (EDI)
• Teleworking
• Distance Education
• Entertainment
59
Internet Age Systems
• Seddon (1997) suggested that the evolution
of information systems can be divided into
periods of 20 years as follows:
1955–1974
The Electronic Data
Processing (EDP) era.
1975–1994
The Management Information
Systems (MIS) era.
1995– The Internet era.
• EDP – essentially batch – controlled by the
60
DP professionals – used at the
‘organisational level’
Internet Age Systems
Electronic Data
Processing (EDP)
Management Information
Systems (MIS)
Internet Era
Syetems
61
Chapter 14: A Page on the
Web
H
a
p
p
y
Birthday toyou
click
62
HTML
• The basic building block of any web page
is HTML:
Hypertext Markup Language
• Hypertext:
– A system of linking between documents –
click the link and the required document is
selected and displayed.
• Markup:
63
HTML on the Web
• The HTML page is stored on the web
server system, connected to the Internet.
• Users access the web page via a web
browser on their own systems, the client
systems.
• The web page, HTML tags andWeb
‘content’,
Server
are downloaded from the server to the
Web Page
browser and displayed in the required
(HTML)
format. Client
Server
Browser
Internet
Software
64
Dynamic Web Pages
• HTML provides for the display of static
information – and nothing more.
• To go beyond the basics requires:
– Server Side Scripting:
Functionality executed on the server:
• Data from a database added to a web page
• Data from the user processed and filed
• CGI/Pearl scripts are example technologies
– Client Side Scripting:
Logic included on the web page and executed
on the client system:
• Moving data/buttons
V lid ti
t dd t
65
Introduction to HTML (1)
• This introduction explains enough HTML
to create a web page for this book.
• The same subset of HTML can be used to
create a personal web page.
(We know that you can use a web editor but do it from
scratch and learn some basic HTML)
• HTML involves inserting markup tags, e.g.:
66
<H1> First level Headings
Introduction to HTML (2)
• Headings:
<H1>Electronic Commerce by
David
Whiteley</H1>
• The HTML tags that specify the formatting
are:
– <H1> Start of major (level 1) heading
– </H1> End of major (level 1) heading
67
Introduction to HTML (3)
• Headings – and to add further effects:
<CENTER><H1>ElectronicCommerce</H1></CENTER>
<CENTER><H3>by <I>David
Whiteley</I></H3></CENTER>
• Additional HTML tags are:
–
–
–
–
–
–
<H3>
</H3>
<CENTER>
</CENTER>
<I>
</I>
Start of level 3 heading
End of level 3 heading
Start centred text
End centred text
Start italic text
End italic text
68
Introduction to HTML (4)
• Text:
<P><B>Electronic Commerce</B> (eCommerce) has ... field of eCommerce.</P>
• The new HTML tags that have been used
are:
– <P>
– </P>
– <B>
– </B>
Start paragraph
End paragraph
Start bold text
End bold text
69
Introduction to HTML (5)
• List:
<UL>
<LI>deals with ... and EDI;
<LI>treats the ... jargon;
<LI>takes a ... exercises.
</UL>
• The HTML tags for the unordered list are:
– <UL>
– </UL>
– <LI>
Start unordered list
End unordered list
List item (no end tag required)
70
Introduction to HTML (6)
• A Picture:
<CENTER>
<IMG SRC="ec-cover.gif">
</CENTER>
• The HTML tag for the picture is:
– <IMG>
Image.
– The SRC attribute specifies the url of the image file to be displayed.
71
Introduction to HTML (7)
• A Link:
<P>Follow these ... publisher
<A HREF="http://www.mcgrawhill.co.uk">McGraw-Hill </A> and the
author <A HREF="http://www.doc.mmu.
ac.uk/STAFF/D.Whiteley">David
Whiteley</A>.</P>
• The HTML tags for the links are:
– <A>
Start hypertext link (A for anchor).
– </A>
End hypertext link.
– The HREF attribute specifies the url of the link
72
Introduction to HTML (7)
• Page Header and Footer:
<HTML>
<HEAD>
<TITLE>e-Commerce by D Whiteley
(McGraw-Hill)
</TITLE>
</HEAD>
<BODY>
The content of the web page.
</BODY>
</HTML>
73
Introduction to HTML (8)
• Page Header and Footer (contd.):
• The first part of the document is the
header:
– <HEAD>
– </HEAD>
– <TITLE>
– </TITLE>
Start header
End header
Start title
End title
• The second part of the document is the:
<BODY>
Start body
74
Introduction to HTML (9)
• The Example Page
<HTML>
<HEAD>
<TITLE>e-Commerce by D Whiteley
(McGraw
Hill)</TITLE>
</HEAD>
<BODY>
<CENTER><H1>Electronic
Commerce</H1></CENTER>
<CENTER><H3>by <I>David
Whiteley</I>
75
The Example Page (contd.):
<UL>
<LI>deals with ... and EDI;
<LI>treats the ... jargon;
<LI>takes a ... exercises.
</UL>
<P>
<CENTER>
<IMG SRC="ec-cover.gif">
</CENTER>
<P>Follow these ... Publisher
<A HREF="http://www.mcgraw-hill.co.uk">
McGraw-Hill</A> and the author
<A
HREF="http://www.doc.mmu.ac.uk/STAFF/D.W
76
hiteley"> David Whiteley</A>.</P>
Further HTML
• Tables:
<TABLE Border=1>
<TR><TD></TD><TD>CW</TD>
<TD>Exam</TD></TR>
<TR><TD>Susan</TD><TD>56%</TD>
<TD>40%</TD></TR>
<TR><TD>Yousif</TD><TD>79%</TD>
<TD>67%</TD></TR>
<TR><TD>John</TD><TD>28%</TD>
CW
Exam
<TD>34%</TD></TR>
Susan 56%
40%
Yousif 79%
67%
</TABLE>
John
28%
34%
77
Further HTML
• Frames:
– Frames are a way of dividing up the browser
window into a number of sub-windows each
displaying a separate HTML file.
• Forms:
– Forms are a way of asking the user to input
information.
• Both Frames and Forms can be quite
complex and the detail is not explained
h
78
Client Side Scripting
• The standard ‘technology’ for Client Side
Scripting is the JavaScript.
• Essentially a JavaScript is a program,
usually a small program, that is embedded
in the HTML source, downloaded with the
HTML source and executed on the client
(the user’s) machine.
• The JavaScript is normally used to change
the screen in some way. Examples are:
– To open an additional window,
– Adding a message in the status bar,
79
Server Side Scripting
• A Server Side Script is a small program that
is run on the server.
• The traditional form is a Common Gateway
Interface (CGI) script.
• In an e-Commerce application CGI scripts
could be used to:
– Access the product database
– Accept the user data input on forms
• CGI scripts have typically been written in
Perl.
80
HTML Editors and Editing
• An HTML file can be created using any
text editor; for PC users, Notepad will
do.
• In order to avoid having to remember
the different tags and having to type
them in, an HTML Editor can be used.
• Some standard desk-top packages
also include HTML formatting facilities
• Once written, an HTML file can be
81
Learning Outcomes
Pada akhir pertemuan ini, diharapkan mahasiswa
akan mampu :
• Mutu/keandalan laporan akuntansi keuangan
dalam eBusiness environment (TIK-13)
• Paradigma baru sistem akuntansi (TIK-13)
• Dampak eBusiness pada Profesi akuntan (TIK-13)
82
Outline Materi
• Materi 1 Financial statement in eBusiness
• Materi 2 New Forms of Assurance to
facilitate eBusienss
• Materi 3 EBusiness and Accounting
Professional
83
Principles
• E-commerce is a new way of conducting business, and
as with any other new application of technology, it
presents both opportunities for improvement and
potential problems.
• E-commerce requires the careful planning and
integration of a number of technology infrastructure
components.
• An organization’s transaction processing system (TPS)
must support the routine, day-to-day activities that occur
in the normal course of business and help a company
add value to its products and services.
84
Introduction to Electronic
Commerce
85
Electronic Commerce
• Business-to-consumer (B2C) e-commerce
• Business-to-business (B2B) e-commerce
• Consumer-to-consumer (C2C) e-commerce
86
Supply Chain Management
87
Value Chains in E-Commerce
• Conversion to e-commerce supply chain
management provides businesses with an
opportunity to:
– increase revenues or decrease costs by eliminating
time-consuming and labor-intensive steps throughout
the order and delivery process
– improve customer satisfaction by enabling customers
to view detailed information about delivery dates and
order status
– reduce inventory including raw materials, safety
stocks, and finished goods
88
Product and Information Flow for HP Printers Ordered
Over the Web
89
E-Commerce Applications
90
Session 14
Crystal ball gazing the Future?
91
The New Millennium
92
EC Issues for The New Millennium
What Are They ????
93
Internet Today
• Internet doubles in size every 11 months
• WWW doubles every 33 days
• Commercial use of Internet for sales,
advertising is being considered by nearly all
companies
• Newer applications,Cheaper and faster
computers and modems, Connection via cable
TV line is bringing Connectivity to households
94
Internet Today – Problems
• The rapid growth and interest has introduced or
amplified many problems
–
–
–
–
–
–
Security concerns
Bandwidth and server saturation
Demand for faster access to multimedia information
Not enough IP addresses to cope with demand
Controlling access to certain types of information
Protecting the work of authors – copyright issues
95
Solutions and Future Trends
• Software companies are trying to find solutions to
meeting demand for commercial use of the Internet
New Protocols (VDP, HTTP/1, HTTP-NG, cheaper lines and
caching being used to deal with bandwidth and faster access to
multimedia information
IP-NG and IPv6 will try to solve problems related to inadequate IP
addresses
PICS (protocol for Internet Content Solution to enable Internet
content providers to tag their data providing a control mechanism
Cryptographic envelopes (proposed by IBM) is being investigated
as a mechanism for protecting electronic content from copyright
abuses
96
She said,
“What’s that?”
She said,
“What does it
do?”
He said,
“The World Wide
Web.”
He said, “I
don’t know, it’s
not finished
yet.”
97
The New Millennium
• Gauge the problem of looking forward by
looking backward
• Five years ago...
• or even twenty years ago…
• Or even thirty years ago...
98
A Long Time Ago
• ENIAC - 1946.
– General purpose computer.
– Weighed 30 tons.
– Cost $486,804.22.
– Had 19.000 vacuum tubes, 1.500 relays
hundreds of thousands of resistors, capacitors
and inductors.
– Consumed 200 kilowatts of electrical power.
99
IBM Mainframes
• When first brought out it was estimated
that there would be enough world demand
for six of them.
100
“Computers in the future may
weigh no more than 1.5 tons”
Popular Mechanics magazine , 1949
“There is no reason
anyone would want a
computer in their
home.”
Ken Olson, Digital Equipment, 1977
101
The result is uncertainty
The future?
It’s in the future!
102
What is E-commerce?
• Covers a wide range of commercial
activities performed by means of an
electronic web that can connect trading
partners
103
E-commerce includes
• EDI (Electronic Data Interchange)
• Support for interpersonal communication
• The transfer of money
• The sharing of databases in the conduct of
business
Milosevic and Bond 1996
http://aleph.ac.upc.es/HMP/PAPER/096/html/096.html
104
The Internet Economy
• Q1 1999 to Q1 2000
– 64 % increase
– $174 Billion
• Q2 2000
– $201 Billion
Overall Internet
105
Economy
The Internet Economy
• 2.3 million jobs in Q1 1999
• 2.37 million jobs in Q1 2000
• 2.46 million in Q2 2000
Internet
Economy106
Jobs
The Internet Economy
• $830 Billion Internet Economy (+58%)
• B-2-B Sector will generate $6.3 trillion alone by
2005
• 42% of B-2-B activity
• Concentrated in five categories
– Aerospace & defense,
chemicals, computers and IT
electronics, auto parts
•
•
•
•
The 1999 US GDP increased
by $340billion of which
$200 Billion was Internet
related
GDP Percentage
107
Issues for The New Millennium
• Globalization
USA
Germany
Poland
Nigeria
Socio-Economic Status
– Beyond communication links and into
cultural harmony
108
Issues for The New Millennium
• Contractual agreements
– Harmonizing contract law
•
•
•
Language of agreement
Courts of adjudication
Specifics of performance
109
Issues for The New Millennium
• Financial Agreements
– Payment confirmation, tax issues
OECD
moved
to freeze
Low
to
Medium
value
Low
to
Medium
value
High
Medium
value
all
efforts
at tax
High to
to
Medium
value
transactions
payment
transactions
payment
transactions
payment
provisions
EU policy
transactions
payment until
system-European
CIT
system-European
CIT
system--European
CIT
was
developed.
system--European
CIT
focusing
on
“electronic
focusing
on “electronic
searches
for
method
to
Switzerland
searches
for
method
to moved
purse”
for
B2C
purse”
for B2C
transfer
large
sums
of
independently
to establish
transfer
large
sums
of
transactions
transactions
money
policy
money
110
Issues for The New Millennium
• Ownership
– Copyright and intellectual property rights
Some harmonization needed
World-Wide
Enforcement
111
Issues for The New Millennium
• Privacy
– Trust, a perception issue
EU
Directive on
Personal
Data in 1995
112
Issues for The New Millennium
• Security
– A procedural issue
113
Issues for The New Millennium
• Interconnectivity
– Infrastructure for broad global access
114
WAP Technology
115
Issues for The New Millennium
• Interoperability
– Systems design for seamless operation
116
Issues for The New Millennium
• Interoperability
148 m Engl.
32%
of
EU
61% of EU
have 2+
128 m nonare B2B
languages
English
276 million
43% of NA
2.3 mil
Internet
are B2C
Polish
users
117
Well?
• XML – making sense of data
• Dot Com failures
– economic viability, re-intermediation
• Portals
– G2C - Government to Customer
– B2E – Business to Employee
– E-learning – Corporate Universities
• Bandwidth, Digital broadcasting
• Physical barriers
– WAP – is it usable?
– VR – need to breach the touchy/feely barrier
– Speech recognition
• Last word on Copyright problems
118
Extensible Markup Language
XML - 1
“Is a language for creating markup
languages that describe data" (Sall, 1999).
• Uses a similar tag structures to HTML.
– HTML defines how elements are displayed.
• Designers can create their own tags with
XML.
• Can be used with HTML.
119
XML – an example
<EMPLOYEE>
<NAME>
<FIRST>John</FIRST>
<MIDDLE>Q</MIDDLE>
<LAST>Public</LAST>
</NAME>
Source: Sall. Ken (1999) An Introduction to XML,
http://idm.internet.com/articles/200002/xml1b.html
120
XML - 2
• Designers create a “document type
definition (DTD) that lays out the
acceptable tags (& their structure) for a
particular type of document” (Weinberger,
2000).
– (Remember that HTML is just on DTD)
• Style sheets tell the browser how to
interprete these tags.
121
XML - 3
• The problem is reaching agreement with
trading partners on the meaning of tags.
– One solution is industry wide DTDs.
– Another solution is Extensible Stylesheet
Language Transformations (XSLT).
122
XSLT
• Extensible Stylesheet Language
Transformations, “presents a standard
way to map tag sets to one another and
even to handle two differing tree
structures” (Weinberger, 2000).
– Can be used to convert an XML document
into HTML.
• e.g.. the tag in the aircraft document called
"Section_Heading" could be translated into a
HTML tag - H2 (Weinberger, 2000).
123
cXML
• “cXML (Commercial XML) from Ariba &
CBL (Common Business Library) from
Commerce One are the first XML
vocabularies for business data” (XML,
2000).
124
ebXML
•
•
•
•
(A.F.R. 22/9/00)
The United Nations Centre for Facilitation of Trade and Electronic
Business (UN/CEFACT) and the Organization for the Advancement
of Structured Information Standards (OASIS) have joined forces to
initiate a worldwide project, the Electronic Business XML initiative
(ebXML), to standardize XML business specifications.
Standards Australia have announced their support.
The Global Commerce Initiative (GCI), representing 85,000 retailers
and manufacturers, will provide the protocol for the use of ebXML.
A primary objective of ebXML is to lower the barrier of entry to
electronic business in order to facilitate trade, particularly with
respect to small- and medium-sized enterprises (SMEs) and
developing nations.
125
Depressing figures on Dot
Com failures
• Green’s research, (cited in Simeon, 1999;
301) has proved that most web sites do
not recover their costs.
– For instance, only 30% of US web sites were
profitable in 1994.
– In 1997, this figure has increased to 46%.
• A European Conference predicted 75% of
all e-business projects will fail by 2001
(Horey, 1999A; 10).
126
Reasons why Dot Coms fail - 1
Siegel (1999) and Nielsen’s (2000) research
identified a number of factors which
contributed to the demise of web sites.
These are:
1. Not taking the web seriously
– Too many companies perceive web site’s as
brochureware or just a catalogue.
2. Trying to meet everyone’s needs
– It is impossible for sites to meet every users
needs.
127
Reasons why Dot Coms fail - 2
3. Technology for technology sake
– Too many times, companies are led by
technology which is a bottomless pit (Siegel,
1999).
4. Marketing and information overload
– Experts frequently fall into the trap of
providing too much information (note how
amazon.com gets customers to review
books).
128
Reasons why Dot Coms fail - 3
5. Organisational versus customer needs
– Too many sites are developed in
accordance with organisational structures
(Siegel, 1999; Nielsen, 2000).
– It’s rare to find sites which don’t mirror
structures.
– Users will not bookmark second level pages
(too confusing).
129
Reasons why Dot Coms fail - 4
6. Ignoring your target audience
– Hiring the greatest web site designer will not
guarantee results.
– Designers must focus on user needs;
– If companies do not know who their target
audience is, who do you think will get the
blame when the site fails?
130
Reasons why Dot Coms fail - 5
7. Page Design
– Creating pages which look great on an
internal network, but suffer in the real world
(Nielsen, 2000).
8. Content
– Too many authors do not write text which is
conducive to the Internet. Remember, most
users scan text (Nielsen, 2000).
131
Reasons Why Dot Coms fail - 6
9. Linking Strategies
– Too many designers do not provide
external links as they fear users will not
return to their site (Nielsen, 2000).
132
Re-intermediation After disintermediation
• Portals “a dynamic trade ecosystem”
– Value chain services,
– Functional integrators
133
G2C - Government to
Customer
• Functional integration of existing services
– one-stop shops
• Local, state and federal Government
134
B2E – Business to Employee
• Intranets
135
E-learning (Weekend
Australian 14-15/10/00)
• Corporate Universities
– Training and Certification
• IBM to Deliver Red Hat Training and Certification Programs
– http://www.redhat.com/about/2000/press_ibm3.html
• MS http://www.microsoft.com/trainingandservices/
– Commercial ventures, partnerships
•
•
•
•
Deakin Australia
ECU + Scottish Learning (sponsored by News Ltd.)
Notre Dame (uni-u International at http://www.uni-u.com)
Curtin’s e-Project?
– Possible partnering with Pearsons, FT Knowledge, …
136
What is Broadband?
• information capacity of a communication channel usually
means bandwidth higher than 2 Mbps.
• doesn't have to be fibre optic cable.
– cable (fibre optic) is a problem in Perth as the carriers found it
was too expensive to lay here so only part of the metro area was
covered.
– consumers could not get fast cable modem access to the
Internet, though this is available in metro areas in the Eastern
States.
• Amcom have fibre-optic cabled the Perth Metro area.
Concentration of broadband is Brisbane, Sydney,
Melbourne, Canberra.
137
Broadband
(cont.)
• other technologies can deliver broadband, but it can be
expensive.
• non-metro broadband can be accessed via satellite.
– BigPond direct has now lowered prices for both metro and
regions and there are other offerings.
• a big help for Electronic Commerce - broadband is faster
and allows features such as multimedia and quick
interaction.
– Ericsson is pushing mobile e-commerce with 3rd generation cell
networks likely to deliver broadband services in the future to
mobile phones and other mobile devices. At the moment, the
bandwidth is not yet there so there are limitations on mobile
devices.
138
Digital broadcasting
• Replacing analog signals with a new digital
method of broadcasting and receiving television
and radio services.
• Has the potential to provide higher quality
services as well as an extended range of
services to viewers.
• Promises a clearer, sharper picture with a
reduction in the interference and ghosting that
currently affect many viewers in built-up areas or
hilly terrain.
139
Broadband
• Will be used for entertainment systems,
multimedia services and Internet to your
mobile.
140
Overcoming physical barriers
• WAP – is it usable?
– VR – need to breach the touchy/feely barrier
– Speech recognition
141
WAP
• the foundation for wireless communication with the
Internet via a mobile phone.
• mobile executives will no longer have to carry laptop
computers to access the Internet, collect e-mails and
obtain updated time-sensitive information such as share
prices.
• Cable & Wireless Optus became the first
telecommunications supplier to launch WAP in
November 1999.
• National Australia Bank has approached Cable &
Wireless Optus to develop WAP banking services which
will provide account balances, funds transfers and Bpay
capabilities.
142
WAP – is it usable?
• Wireless Communication, yes, but
–
–
–
–
Keyboard too small
Screen too small
Security?
Speed?
• So what will we use it for?
• Mobile payments can also be made from your
phone and debited to your mobile phone
account (eg concert tickets)
143
Virtual Reality
• Not mainstream yet
– dependent on bandwidth
• Current sites usage:
– auctions
– real estate
– museums
• Other sensations?
144
Voice recognition
• At the moment, people with hand
impediments are disadvantaged on the
net.
• Voice activated browsers will be the future.
• Why shouldn’t browsers be able to read
out web pages to people (Nielsen, 2000)?
145
Multi-linguistics
• With the web being a truly
international medium, why should
pages be written only in English?
• Sites will need to develop multilingual
capabilities.
146
Rendered 3-D
served on Internet
QuickTime™ and a
Cinepak decompressor
are needed to see this picture.
,
Seat Sales
147
Virtual Reality
San Francisco’s New Baseball Stadium
Selected Seat View
148
Internet – Final words
• Internet has democratised access to
information and changed the way we see
the world
• There is a need for openness and
standards compliance by software
compliance by software manufactures
• Newer and more efficient protocols are
needed to met the demands for faster
access to resources.
149
Last words
• Mostly More, but Less
– More bandwidth
– Less sites (more integration)
• Big will keep on getting bigger
– Gartner predicts the Internet will represent 25% of world
trade.
– Gartner believes by 2005, America will capture 50% of
Internet trade (Barrow, 1999).
• Attracting users
– The one fundamental issue:
• How is your site going to “attract your target market, turn these
visitors into regular users and keep them satisfied” (Horey,
1999).
– see www.webpagesthatsuck.com for what not to do!
• Copyright - publishers will fix the Napster problem!
150
E-Commerce Applications
•
•
•
•
•
Retail and Wholesale
Manufacturing
Marketing
Investment and Finance
Auctions
151
Retail and Wholesale
• Electronic retailing - the direct sale from
business to consumer through electronic
storefronts
• Cybermall - a single Web site that offers many
products and services at one Internet location
152
Model of an Electronic Exchange
153
Questions 1
1. Identify several advantages of e-commerce.
2. Identify some of the major challenges
companies must overcome to succeed in ecommerce.
3. Identify several e-commerce applications.
154
Technology, Infrastructure, and
Development
155
Key E-Commerce Technical Components
156
Hardware
• The amount of storage capacity and computing
power required of the Web server depends
primarily on two things:
– the software that must run on the server
– the volume of e-commerce transactions that must be
processed
157
Software
•
•
•
•
•
•
Web site development tools
Web page construction software
E-commerce software
Catalog software
Product configuration software
Electronic shopping cart
158
Electronic Shopping Cart
159
Electronic Payment Systems
• Electronic cash
• Electronic wallets
• Credit, charge, debit, and smart cards
160
Questions 2
1. Outline the key components of technology
infrastructure that must be in place for ecommerce to succeed.
2. Discuss the key features of the electronic
payments systems needed to support ecommerce.
3. Identify the major issues that represent
significant threats to the continued growth of
e-commerce.
161
Summary
• Mahasiswa diwajibkan membuat summary
162