Lesson 12: E-Commerce Practices

moonlightmidgeInternet and Web Development

Nov 18, 2013 (3 years and 10 months ago)

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Lesson 12:

E
-
Commerce Practices

Lesson 12 Objectives


Compare e
-
commerce to traditional commerce


Discuss the three e
-
commerce models


Discuss common business operations that use Web technologies


Identify the relationship between Internet marketing and search
engine optimization (SEO)


Discuss e
-
commerce information
-
formatting technologies


Identify payment models used in e
-
commerce


Identify ways to protect private transactions


Identify issues related to working in a global environment


Identify ways to build e
-
commerce relationships using Web
-
based technology






Traditional Commerce

vs. E
-
Commerce


Similarities


Both aim to deliver a valued product or service


Both want to serve a large audience


Both strive to quickly deliver products and services


Differences


E
-
commerce customers expect shorter fulfillment time


E
-
commerce customers must understand Web
-
based
technologies


E
-
commerce provides a global audience


E
-
commerce orders are processed without human interaction
or travel to a store location


E
-
commerce relies upon encryption for security

E
-
Commerce Models


Business to consumer (B2C)


Targets consumers or end users, and sells
products and/or services


Amazon.com, small business sites


Business to business (B2B)


Helps organizations to manage relationships and
transactions with other businesses


B2Bxchange


Consumer to consumer (C2C)


Consumers buy and sell products or services to
other consumers



eBay, Craigslist

E
-
Commerce Models


Business to consumer (B2C)


Targets consumers or end users, and sells
products and/or services


Amazon.com, small business sites


Business to business (B2B)


Helps organizations to manage relationships and
transactions with other businesses


B2Bxchange


Consumer to consumer (C2C)


Consumers buy and sell products or services to
other consumers



eBay, Craigslist

Business and Internet
Technologies


Traditional businesses also use e
-
commerce


Not an either/or proposition


Web technologies make traditional business
more efficient


E
-
commerce concepts:


Supply chain management


Enterprise resource planning (ERP)


B2B information sharing

Supply Chain Management (SCM)


The ability to manage the process that
generates a product and distributes it to
customers


You must manage the process that begins with
raw materials and ends with a product delivered
to a consumer


Customer can be:


An end user


Another business that resells your product after adding
value to it, known as a Value Added Reseller (VAR)

Supply Chain Management (SCM)
(cont'd)


Traditional supply chain management model


Professionals running e
-
commerce sites
increasingly need to understand this model

Supply Chain Management (SCM)
(cont'd)


Supply chain management involves the
following business aspects:


Product demand


Information flow


Finance management


Essential supply chain management terms


Upstream and downstream


Capacity requirements plan


Additional terms found in coursebook

Enterprise Resource Planning (ERP)


Use of software to create an automated plan
for company operations


ERP goal


enhance communication among all
company departments and divisions through
software automation


Accomplished through automation of tasks and
reporting


All company/organization departments
involved


Common terms:


Bolt
-
on system


Application programming interface (API)


Library


B2B Information Sharing

with XML


XML allows information to be indexed
once, then used in many different
applications and companies


DTD limitations


XML schema

Internet Marketing and

Search Engine Optimization (SEO)


Marketing terms


Internet marketing consists of:


Search engine optimization (SEO)


Pay per click (PPC)


Web analytics

Search Engine Optimization (SEO)



SEO
improves the volume and quality of traffic
to a Web site by structuring content to
improve search engine ranking



An SEO expert must:


Learn about and consider the factors that search
engines take into account as they rank sites


Try to create and edit Web pages accordingly



Common SEO tactics



Writing quality Web copy


Pay Per Click (PPC)



PPC


list your site high in search engine
rankings by advertising on keywords that
describe your product or service



You simply pay to have your page listed as
highly as possible



Most Internet marketing campaigns combine
SEO and PPC strategies


Web Analytics



Web analytic

types:


On
-
site analytics


Use trend analysis software to analyze server
logs


Tag pages


Off
-
site analytics


Identify the size of your market


Identify competitors


Determine your market penetration


Conduct surveys


Consult market research sources

Complete Internet Marketing



A successful marketing campaign involves:



A competent leader


A team effort


Continued effort


Follow
-
up

E
-
Commerce

Information
-
Formatting Technologies



When businesses need to exchange
information, they must agree upon
universal information
-
formatting
methods


The two most common ways to format
information are:


Electronic Data Interchange (EDI)


Open Buying on the Internet (OBI)

Electronic Data Interchange (EDI)


A universal method for formatting information so
it can be transferred among organizations


In place for over 20 years


Useful for exchanging:


Invoices


Bills


Purchase orders


Inventory lists


Supply chain information


EDI implementation and drawbacks


EDI and XML



Open Buying on the Internet (OBI)


Designed as an alternative to EDI


Developed to target high
-
volume, low
-
cost transactions


These account for almost 80 percent of
most companies' purchasing activities


OBI components


OBI transactions


OBI and EDI

E
-
Commerce

Payment Technologies


Payment technologies include:


Electronic Funds Transfer (EFT)


Payment gateways


Secure Electronic Transactions (SET)


Open Trading Protocol (OTP)


Secure Sockets Layer (SSL) / Transport Layer
Security (TLS)

Electronic Funds Transfer (EFT)


A generic term that describes the ability to
transfer funds using computers rather than
paper


Also known as wire transfer


EFT systems must ensure:


Confidentiality of payment information


Integrity of payment information


Merchant authentication


Interoperability


Automated Clearing House (ACH)


Governed in the United States by the National
Automated Clearing House Association


Used in EFT

Payment Gateway


Mediates between a merchant and a
merchant bank


Once the merchant receives payment from a
customer, the merchant uses the payment
gateway to transmit credit card information
to the bank


Responsibilities:


Forwarding information


Authenticating participants


Ensuring confidentiality


Ensuring data integrity


Payment gateway companies

Secure Electronic

Transactions (SET)


Uses digital certificates to secure financial
transactions


Public and private keys ensure encryption,
data confidentiality and non
-
repudiation


Designed to allow both simple and complex
transactions


History of SET



SET example


SET vs. conventional transactions


Open Trading Protocol (OTP)


Alternative to SET


An open standard (RFC 2802)


Used for both B2C and B2B


Often used with XML


OTP features:


Provides trading protocol options to control the way
that the trade occurs


Provides a record of a particular trade


Supports real and virtual delivery of goods and
services (payment tracking)

Secure Sockets Layer (SSL) /

Transport Layer Security (TLS)


Not
transaction methods


Used to secure transactions


Services provided:


Authentication



Data confidentiality



Data integrity

SSL/TLS and

Public Key Infrastructure (PKI)


You need a certificate to enable host
authentication before you can begin an
SSL session


Public Key Infrastructure (PKI)


A collection of individuals, networks and
machines that comprise the ability to
authoritatively confirm the identity of a
person, host or organization

PKI Elements


PKI elements include:


Digital certificate


Certificate authority (CA)


Registration authority (RA)



Certificate server



Certification chain


Digital Certificates and X.509


Digital certificates used in PKI conform to the ITU
X.509 standard


X.509 describes how to format digital certificates

PKCS Standards


Public
-
Key Cryptography Standards
(PKCS)


Used to store and transport certificates


PKCS #7


Used to secure e
-
mail certificates


PKCS #10


Used to generate a certificate request to a
certificate authority (CA)

Certificate Life Cycle



Certificates usually have a limited life (e.g., 1 month, 2 years, 6
years)


Life cycle helps reduce the likelihood of fraud


Terms include:


Certificate policy


Certificate Practice Statement (CPS)



Certificate expiration



Certificate revocation


Certificate s
uspension


Certificate r
enewal


Certificate destruction


Certificate revocation list (CRL)


Online Certificate Status Protocol (OCSP)

Additional SSL/TLS Concepts


The SSL/TLS handshake


Common applications


Beginning an SSL/TLS session


Encryption begins after authentication


Issues:


Different host name


Certificate expired


Certificate date not yet valid


Invalid certificate format


Certificate presented by the server not signed by a
recognized CA


Incompatible encryption settings

Working in a Global Environment



By placing your business on the Web, you expand
your audience to include anyone in the world
with a browser and Internet access


Consider the level to which you will
accommodate potential customers from
countries outside yours


Issues to consider include:


Currency differences


International shipping


Language concerns


Relationship management

Currency and Trade



Each country (e.g., China) and economic block
(e.g., European Union) uses its own currency


Businesses and organizations must be able to:


Automatically calculate exchange rates for the day
of the transaction


Calculate taxes and tariffs on goods


Taxes, tariffs and trade


International Shipping



Consider the following issues:


Customs searches


Costs incurred by customs


Delays caused by customs


All tariffs


Legal and regulatory issues:


A product you sell legally in one country
may be illegal in another


A product you sell may be heavily regulated



Language Concerns


As you develop an e
-
commerce site,
consider the following issues:


The language(s) used by the target audience



The characters necessary (e.g.,
alphanumeric, mathematical or currency
symbols)


Character sets and languages


Computers can use different character sets


Unicode

Relationship Management


Building trust


Quality customer service


Frequent contact


Customer self
-
service


Automatic order tracking



Unattended choice



Order customization

Lesson 12 Summary


Compare e
-
commerce to traditional commerce


Discuss the three e
-
commerce models


Discuss common business operations that use Web technologies


Identify the relationship between Internet marketing and search
engine optimization (SEO)


Discuss e
-
commerce information
-
formatting technologies


Identify payment models used in e
-
commerce


Identify ways to protect private transactions


Identify issues related to working in a global environment


Identify ways to build e
-
commerce relationships using Web
-
based
technology

Site Development Foundations


Introduction to Web Site Development


Markup Language and Site Development Essentials


XHTML Coding


Horizontal Rules and Graphical Elements


Hyperlinks


HTML Tables


Web Forms


Image Techniques


HTML Frames


GUI HTML Editors


Advanced Web Technologies


E
-
Commerce Practices