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Basic Technology for Electronic Commerce
Fan Fan
Email address: ffan95@tom.com
Lecture Outline
Learning Objectives
1. Technological system for e-commerce
2. Internet and network
3. Electronic data interchange
4. Electronic commerce hardware and software
5. Security Technology in Electronic Commerce
Learning Objectives
To understand the elements of technological system
that relate to e-commerce
To describe the architecture of network and Internet
that facilitate e-commerce
To explain the concept of EDI and how it works
To explore the kinds of e-commerce software
To identify security technology in e-commerce
E-Commerce today
Definition of e-commerce in three ways
So, instead of using mail, telephone or fax to send
catalogues, order forms, notes confirm of receipt, ecommerce uses electronic means of communication.
The purpose:
Providing a comprehensive descriptions and ideas of
basic technology for electronic commerce. We begin
by technological system for e-commerce, and then to
Internet and network, electronic data interchange,
electronic commerce hardware and software and
finally, to security technology in electronic
I. Technological System for E-Commerce
1.1 Structure of E-Commerce
Infrastructure services
Other two aspects
(Figure 1)
1.2 E-Technology Architecture
E-application rules
E-application distribution/ integration
1.3 Technologies Associated with E-Commerce
A web browser
Internet videoconferencing .
Internet phone
A discussion list or newsgroup
A web page and a website
II. Internet and Network
Computer networks and the Internet, which connect
computer networks around the world to each other,
from the basic technology structure that underlies all
electronic commerce.
2.1 Internet Protocols
ARPANET and Network Control Protocol (NCP).
--Should not require any internal change
--Retransmitted from their source network.
--Do not retain information
--No global control
2.2 TCP/IP
Transmission Control Protocol (TCP) and Internet
Protocol (IP).
The TCP control the disassembly of a message or a
file into packets before it is transmitted over the
The IP specifies the addressing details for each
packet, labeling each with the packet’s origination
and destination address.
2.3 World Wide Web
The part of the Internet known as the World Wide
Web, or more simply, the Web, is a subset of the
computers on the Internet that are connected to each
other in a specific way that makes them and their
contents easily accessible to each other.
2.4 Intranets and Extranets
Intranets are an excellent way to distribute internal
corporate information.
Extranets are networks that connect companies with
suppliers, business partners, or other authorized
Figure 3. Intranet and Logistics management
2.5 Internet Connection Options
Internet access providers (IAP or ISPs)
--Leased line
--Wireless Ethernet (Wi-Fi)
2.6 Seven Layers
1. Physical layer
2. Data link layer
3. Network layer
4. Transport layer
5. Session layer
6. Presentation layer
7. Application layer
2.7 LAN, WAN and Network
A network of computers that are located closed
together in the same building-is called a local area
network, or LAN.
Networks of computer that are connected over
greater distance are called wide area networks, or
Figure 4. LAN, WAN and Internet
2.8 Public and Private Networks
A public network is any computer network or
telecommunications network that is available to the
A private network is a private, leased-line connection
between two companies that physically connects
their intranets to one another.
2.9 Virtual Private Networks (VPN)
A virtual private network (VPN) is an extranet that
uses public networks and their protocols to send
sensitive data to partners, customers, suppliers and
employees using a system called IP tunneling or
III. Electronic Data Interchange
Electronic data interchange (EDI) is the collection of
standards for exchanging data between computers in
separate organization.
3.1 Broader EDI Standards
Commonly used ASCX12 transaction sets
Commonly used UN/EDIFACT transaction sets
3.2 How EDI Works
B2B, B2C
Figure 5. EDI and Purchase process
3.3 Value-Added-Networks
Direct connection or indirect connection.
Definition of VAN
Advantages and Disadvantages of VAN
Figure 6. Indirect connection EDI Through a VAN
3.4 EDI on the Internet
Reasons on the Internet
Open Architecture of the Internet and benefits.
IV. E - Commerce Hardware and Software
4.1 Web Server Hardware
Companies use a wide variety of computer brands,
types and sizes to host electronic commerce
4.1.1 Server Computers
Web server computers generally have more memory,
larger (and faster) hard disk drives, and faster
processors than the typical desktop or notebook PCs.
4.1.2 Web Hosting Choices
Shared hosting
Dedicated hosting
4.2 Software for Web Servers
Some Web server software can run on only one
computer operating system, while some can run on
several operating systems.
4.2.1 Operating Systems for Web servers
4.2.2 Web server Software
4.3 Functions of Electronic Commerce Software
4.3.1 Basic functions
Catalog Display
Shopping Cart
Transaction Processing
4.3.2 Advanced Functions
Advanced Functions cover the middleware,
application integration and Databases and integration
with ERP Systems.
V. Security Technology in Electronic Commerce
5.1 Internet Security Classifications and Policy
A security policy requirements: Six points
5. 2 Encryption and Decryption
Encryption is the coding of information by using a
mathematically based program and a secret key to
produce a string of characters that is unintelligible.
Figure 7. Encryption, Decryption and Purchase
5.3 Digital Certificates
A digital certificate is an attachment to an e-mail
message or a program embedded in a Web page that
verifies that the sender or We site is who or what it
claims to be.
A digital certificate includes six main elements.
5.4 Firewalls
Firewalls are computer and software combination
that is installed at the Internet entry point of
networked system.
Firewall computers have three characteristics:
Figure 8. Firewall and Internet
Electronic commerce technologies and strategies are
key factors for today’s e-commerce, as the Internet
continues to become more popular, electronic
commerce techniques will evolve to meet the
The End