E-Commerce Giorgio Giudice

What is E-Commerce? Is a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet It allows consumers to electronically exchange goods and services with no barriers of time or distance

3 Options When planning an e-commerce architecture, analysts can examine: in-house development packaged solutions service providers

In-House Development PROS: The company has more freedom to integrate with customers and suppliers and is less dependent on vendor-specific solutions The company has a complete control over the organization of the site, the number of pages, and the size of the files The company will have a scalable structure to handle increases in sales and product offerings in the future CONS: requires a greater initial investment more responsibilities Too expensive for small companies Example:

Packaged Solutions Small paragraph in our book, probably the most important architecture today! PROS: Solution for small and medium and large-sized firms Cheap or Free It’s an expanding model CONS: Less Customizable Less secure Example:

Market Share source:

Service Providers An application service provider (ASP) is a firm that delivers a software application, or access to an application, by charging a usage or subscription fee. An ASP provides more than a license to use the software; it rents an operational package to the customer.

What about Ebay? Business-to-Consumer (B2C) Companies sell their online goods to consumers who are the end users of their products or services. For Example: AMAZON Business-to-Business (B2B) Companies sell their online goods to other companies. For example, manufacturers selling to distributors. Consumer-to-Business (C2B) Consumers usually post their products or services online on which companies can post their bids. For example, ELANCE. Consumer-to-Consumer (C2C) Consumers sell their online goods to other consumers. FOR EXAMPLE: EBAY, ETSY, CRAIGSLIST

PROCESSING METHODS An online system handles transactions when and where they occur and provides output directly to users. Because it is interactive, online processing avoids delays and allows a constant dialog between the user and the system. (For example, airline reservations systems) Batch processing means that data is managed in groups, or batches. That was an acceptable choice in the 1960s, and for most firms, it was the only choice. Today, all businesses need realtime information to operate, and batch processing is not practical. However, batch methods can be efficient and convenient in some situations.

ONLINE SYSTEMS PROS: Performant: the system processes transactions completely when and where they occur. Customizable: Users interact directly with the information system and they can access data randomly. CONS: Security concerns More expensive than batch processing

Batch Processing – Why is it still there? Batch programs that require major network resources can run at times when costs, and impact on other traffic, will be lowest. A batch method is well-suited to address security, audit, and privacy concerns, because it runs in a relatively controlled environment. Tasks can be planned and run on a predetermined schedule, without user involvement.

COOL EXAMPLE: Grocery store BATCH PROCESSING: Updates the inventory Produces output on the POS Prints the receipt When the store closes, the system produces the daily sales report