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Electronic Commerce and Database Issues

Electronic Commerce and Database Issues. Serge Abiteboul INRIA EDBT Summer School -- April 1999. Overview. 1. Introduction 2. Business models Web-catalog, procurement, auctions Portals 3. Enabling technologies Digital currency, cryptography, EDI 4. Active Views

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Electronic Commerce and Database Issues

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  1. Electronic Commerce and Database Issues Serge Abiteboul INRIA EDBT Summer School -- April 1999

  2. Overview 1. Introduction 2. Business models • Web-catalog, procurement, auctions • Portals 3. Enabling technologies • Digital currency, cryptography, EDI 4. Active Views 5. Conclusions and bibliography Electronic commerce - Serge A.

  3. 1. INTRODUCTION

  4. Electronic commerce Commerce n. buying and selling, all forms of trading, including banking, insurance, etc. [the Oxford dictionary] Electronic commerce Commerce using computers and networks [my definition] Electronic commerce - Serge A.

  5. Introduction: Goals Increase the speed, efficiency of business transactions Improve services and customer support Decrease costs using computers and network technology In short: increase profit Electronic commerce - Serge A.

  6. Introduction: Web catalog Software to allow customers to buy some products on the Web • All kinds of goods • Must manage everything • customer search for product • provide all information about product • ordering, billing, payment • delivery • customer support, etc. Electronic commerce - Serge A.

  7. Main goals of Web catalog • facilitate search for product • enable small business to reach out • marketing, promotions • personalized for more efficiency • promote new brand/product • fast reaction: adapt to market, reduce inventory, get ride of old stuff Electronic commerce - Serge A.

  8. Introduction: procurement Process for a company of acquiring all products it needs • Based on special deals with specific partners • Based on the rules of the companies (and regulations for the government) • Search, order, approval, delivery, (internal/external) billing, support, etc. Electronic commerce - Serge A.

  9. Introduction: procurement • Reduce processing costs • Reduce processing time • Reduce errors • EC means connection between the computerized applications of all parties in business transactions all virtual / paperless business transactions Electronic commerce - Serge A.

  10. What kind of data? • Catalog: large amount of multimedia data • Distributed data • Transaction data, e.g. orders • Stock management • User profile, temporal data • Knowledge: on products and customers Electronic commerce - Serge A.

  11. Legacy data and interoperability • Inventory and pricing: Relational Databases • Customer data: Specific Application • Catalog: textual format • Payment systems: off the shelf boxes allowing a variety of payment modes • Existing ordering system Electronic commerce - Serge A.

  12. Simplified product data Product-basic all products category=electronic, subcategory=sound, name=Gismo223, code=F2GHYYRF, selling-price=1200FF Product-specific for Gismos voltage=list(110,220), Gismo-norm=GHTF333 External resources description=http://m.ec.fr/cat/Gismo reviews=http://reviews.com/Gismo Private data buying-price=100$, quantity-in-stock=20000, supplier=Camif, authorized-discount=30% relational database XML repository Web resources other database Electronic commerce - Serge A.

  13. Same data in XML <product> <basic> <cat> electronic <subcat >sound </subcat><cat> <n>Gismo223 </n><c>F2GHYYRF</c> <sp currency=French-franc>1200</sp> </basic> <specific> <v>110</v><v>220</v> <Gismo-norm>=GHTF333</Gismo-norm></specific> <external> … </external> <private> <bp currency=dollar>100</bp> <qis>20000</qis>, <s>Camif</s> <ad>30</ad></private><\product> Electronic commerce - Serge A.

  14. What kind of data processing? • On Line Transaction Processing • On Line Analytical Processing • Data Warehouse • Data Mining • Workflow Management • Subscription, publishing, push technology Electronic commerce - Serge A.

  15. 2. BUSINESS MODELS

  16. Business Models • B2C business to customer • e.g., Web catalog • B2B business to business • e.g., procurement • B2G business to government • restrictive due to regulations Electronic commerce - Serge A.

  17. Search Order Delivery Billing payment 2.1 Some business modelsB2C: Web catalog Customer Vendor Third party (bank) Electronic commerce - Serge A.

  18. More on Web catalogs • Product description and search. Branch out to external resources (news articles), annotations by customers, chat rooms • Interactivity. At least emails. Talks • Dynamic updates: adjust prices in real time, advertisements, promotions, etc. • Personalized • Logging Electronic commerce - Serge A.

  19. Search Order Billing Delivery payment B2C: E-Mall Customer E-Mall Third party (bank) Vendor Third party (bank) Vendor Third party (bank) Vendor Third party (bank) Vendor Third party (bank) Vendor Electronic commerce - Serge A.

  20. B2C: Comparative Shopping http://www.addall.com • 24 bookstores searched in about 10 seconds • between $42 and $78 • that’s why people will use them! Electronic commerce - Serge A.

  21. B2B or B2C: Auction Public sale in which each article is sold to highest bidder • Based on trust: auctioneer and 3rd party • Both B2C and B2B • Integration in corporate business process • B2B predicated large growth • Automatic selection of bids: game theory Electronic commerce - Serge A.

  22. Bidding Bidding Bidding Search Notify Delivery Billing Register Payment Auction Bidding Customer Auctioneer Third party (bank) Vendor Vendor Vendor Vendor Many kinds of auctions: classic, Dutch, candle... Electronic commerce - Serge A.

  23. More Complex Models • Transaction attributes: quantity, packaging, delivery, support, insurance…payment attributes • Coupons, frequent flyers, promotions, cash back offers, 2 for 1, free trials, free samples, cross sales, upsales, contests, subscription, loyalty awards Many more to be invented Electronic commerce - Serge A.

  24. 2.2 Situation • B2B • still limited to large companies • large potential for growth • must adapt to business rules of all partners • growth with complex models such as auctions • B2G • very big growth under pressure of US, EC, etc • US: all bidding use EDI by 1999 Electronic commerce - Serge A.

  25. hard to install & need more personalization about 400% growth per year last 4 years Virtual: electronic magazines, X, insurance... Products computer products 32% travel 24% entertainment 19% gifts & flowers 10% food & drinks 5% Situation -- B2C Electronic commerce - Serge A.

  26. B2C • Stores • big chains like wal-mart (US), camif (France) • very dynamic SME’s • Services • traditional banks, insurance, etc. • new “virtual” ones (banks without physical counters) • Virtual malls Electronic commerce - Serge A.

  27. 2.4 Portals One stop shopping for any information inside or outside the company (shopping mall for knowledge) • Enterprise information portal • Web portal (my.netscape.com or my.yahoo.com) Electronic commerce - Serge A.

  28. Portals • Heterogeneity reports (word,ps,html,..), newsgroup, email, spreadsheets, newspapers, analytic tools, etc. • Data integration Electronic commerce - Serge A.

  29. Web access Portals Publish&subscribe engine Crawler&filter engine Security manager Request broker Business intelligence Output/Delivery Data Warehouse Web browsers OLAP Web browsers Web server Image video Web browsers reports Information repository Electronic commerce - Serge A.

  30. Designed for casual users Intuitive classification and searching Collaborative sharing Intelligent routing Integrated tools: query, report, olap, drill through to data Server-based (many concurrent users) API access Security & flexible permissioning Easy to deploy (thin client) Easy to customize and personalize Some Portal Rules [from Wayne Eckerson] Electronic commerce - Serge A.

  31. Wrapper technology -- data conversion Mediator technology -- data integration Data Warehouse -- consistency maintenance Fast data loading Management of replication, update propagation Query rewriting & query optimization Standard issues:Data conversion and integration Electronic commerce - Serge A.

  32. Less standard issues • Task sequencing : looking for a biblio ref • check first some selected sites • if no success, look in others • transform the biblio in BibTex format and add to personal bibliography • propose a search for the report in other resources • Change control: Query subscription zoom Electronic commerce - Serge A.

  33. 99/09/09 99/02/01 description 01/05/03 very nice Query subscription: changes Changes in label graphs : as in DOEM Catalog code Gismos78 product sub category electronic price £234 £278 Electronic commerce - Serge A.

  34. Query subscription: changes • Change value of atomic vertex value • Creation of new vertex • Addition/removal of an edge • Change of the label on an edge: add/remove • Move a vertex: add/remove • annotations on edges and vertexes Electronic commerce - Serge A.

  35. Query subscription: queries select P.code, P.description from Catalog.product P where P.price <changed>Q vertex annotation where P.<added>description edge annotation where P.price data in annotation <changed <old=Q’, date T>>Q and Q - Q’ > 100 and T > “99/04/03” Electronic commerce - Serge A.

  36. Query subscription: examples • On the first of each month, send me the list of all products in my interest list such that their price increased by more than 10% • Each time there are ten new employees, send me their names and departments • Notify me if the price of this house decreases • similarity on event when condition do action Electronic commerce - Serge A.

  37. Query subscription: management • Detect the event • date, changes, combined changes • Evaluate the condition • incremental evaluation • Perform the action • Combined evaluation for thousands of customers Electronic commerce - Serge A.

  38. Goals: in all cases personalization fast deployment robustness and correctness Electronic commerce - Serge A.

  39. 3. ENABLING TECHNOLOGIES

  40. 3.1 EDI -- B2B EDI= Electronic Data Interchange • Standard for business data exchange • 2 standards: • ANSI X12 in US • EDIFACT in world - UN committee • Collect elements in databases translate  EDI  transmit • 90% of fortune 100; 10% others Electronic commerce - Serge A.

  41. Electronic commerce - Serge A.

  42. <!DOCTYPE Book-Order PUBLIC "-//Editor//DTD Book Order Message//EN"> <Book-Order Supplier="4012345000094" Send-to="http://www.bic.org/order.in"> <title>Editor Lite-EDI Book Ordering</title> <Order-No>967634</Order-No> <Message-Date>19961002</Message-Date> <Buyer-EAN>5412345000176</Buyer-EAN> <Order-Line Reference-No="0528837"> <ISBN>0316907235</ISBN> <Author-Title>Labaln, Brian/Chrome</Author-Title> <Quantity>2</Quantity> </Order-Line> <Order-Line Reference-No="0528838"> <ISBN>0856674427</ISBN> <Author-Title>Parry, Linda (ed)/William Morris</Author-Title> <Quantity>1</Quantity> </Order-Line><input type="checkbox" name="partial" value="allowed"/> <text>Tick here if a delayed/partial supply of order is acceptable</text> <input type="checkbox" name="confirmation" value="requested"/> <text>Tick here if Confirmation of Acceptance of Order is to be returned by e-mail</text> <input type="checkbox" name="DeliveryNote" value="required"/> <text>Tick here if e-mail Delivery Note is required to confirm details of delivery</text> <E-Address>E-mail address: <input name="e-address" size="25"></input></E-Address> <Language>Please respond in:<select name="response-language"> <option value="EN" selected>English</option><option value="FR">Fran&ccedil;ais</option> <option value="DE">Deutsch</option> <option value="ES">Espagnol</option> <option value="IT">Italian</option> </select></language> <input type="submit" value="Press here to send completed form to supplier"> </Book-Order> This data in XML/EDI Electronic commerce - Serge A.

  43. EDI • layers • business application level (specific to company ’s software) • EDI standard layer -- data exchange • communication layer (email, point to point/telnet, www) • typically moving from email to www Electronic commerce - Serge A.

  44. EDI messages • Data element: purchase order number, quantity, unit price • Data segment: Group of data element that convey information. E.g., invoice term, shipping information • Transaction set: business document. E.g., purchase order (made of segments) Electronic commerce - Serge A.

  45. 3.2 Digital Currency • Relies on network for transmission • Relies on cryptography for security in open network environment • Relies on connections with standard financial system • Goal: reduce costs, improve services Electronic commerce - Serge A.

  46. Digital Currency • « smart cards » • require accounts • credit card billing at end of billing cycle • debit card/ payment at end of billing cycle • debit card/ deposit $ deduct at each purchase • electronic money • micro/mini payment Electronic commerce - Serge A.

  47. Electronic Money • Digital cash or E-token • should be bank certified • exchangeable with other forms of payment • tamper resistant • storable • transactions via 3rd party (e.g., First virtual) • Bearer certificate (like cash) - whoever holds the certificate holds the value Electronic commerce - Serge A.

  48. Micro and Mini Payments • More than 80% of purchases are less than 20$ • Micro < 0.15$ • Issue is cost: Standard payment such as credit card cost too much for those • Digicash, Netbill, Millicent, Payword, MicroMint, Agora... Electronic commerce - Serge A.

  49. Smart card • Processor, e.g. Java card • Capable of loading/running several applications -- one card with bank + digicash + frequent fliers + agenda + address book ... • Cryptography • Personal data • Mobile computing Electronic commerce - Serge A.

  50. 3.3 Cryptography • Public Key Encryption • 2 keys: public pK and secret sK • to send a message M : send e(pK,M) • sK is needed to decrypt the message, i.e., d(sK,e(pK,M)) = M • no need to send keys over the network • Rivest-Shamir-Adlemam : prime numbers Electronic commerce - Serge A.

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