book

Designing Systems for Internet Commerce, Second Edition

Name: Designing Systems for Internet Commerce, Second Edition
ISBN: 0201760355

by G. Winfield Treese, Lawrence C. Stewart

October 2002

Intermediate to advanced

496 pages

12h 55m

English

Addison-Wesley Professional

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Copyright
Dedication
Preface
Changes in the Second EditionAcknowledgments
1. Introduction
Why the Internet and Why Now?Access to a Global MarketDramatic Reduction in Distribution CostsStrategic IssuesConcentration Versus EmpowermentNew Competitive ChallengesWhat Do We Mean by “Internet Commerce”?Other Types of Electronic CommerceBusiness Issues in Internet CommerceTechnology Issues in Internet CommerceWho Owns Internet Commerce in an Organization?Structure of the BookPart One: The Business of Internet CommercePart Two: The Technology of Internet CommercePart Three: Systems for Internet Commerce
One. The Business of Internet Commerce
2. The Commerce Value Chain
Introducing the Commerce Value ChainComponents of the Commerce Value ChainAttract CustomersInteract with CustomersAct on Customer InstructionsOrder ProcessingPaymentFulfillmentReact to Customer InquiriesWho Is the Customer?Developing Customer Relationships with Internet CommerceMarketing on the InternetThe Internet Is Different from Other MediaThe Internet Is the Same as Other MediaUnderstanding the DemographicsOne-to-One MarketingAdvertisingDoing Business InternationallyInternational SoftwareInternational ContentPrivacyThe Legal EnvironmentTaxationDigital SignaturesRegulation of CryptographyDenied PartiesThe Problem of UncertaintySummary
3. Internet Business Strategy
Commerce and Technology RevolutionsA Historical AnalogyThe Internet Value PropositionTransforming Customer RelationshipsDisplacing the Sources of ValueFour StrategiesChannel MasterExample: Cisco SystemsCustomer MagnetExample: YahooValue Chain PirateExample: AutowebDigital DistributorExample: Monster.comNew Competitive ThreatsNew Competitive OpportunitiesDisintermediation and ReintermediationSummary
4. Business Models—Some Case Studies
Introduction to Business SegmentsSegment Granularity, Market Size, and TimingSegment Similarities and DifferencesCommerce Value ChainConsumer RetailValue PropositionSystem FunctionalityAttract—Advertising and MarketingInteract—ContentAct—Order ProcessingAct—PaymentCashCreditCheckDebit CardsCredit and Charge CardsSummaryAct—FulfillmentRelationship Between Payment and FulfillmentReact—Customer ServiceOpportunities for Improved ServiceOpportunities for Reduced CostsBusiness-to-Business ModelsValue PropositionDifferences in Relation to Consumer RetailAttract—Advertising and MarketingInteract—ContentSearching Is EssentialCustom CatalogsAct—Order ProcessingApprovals and WorkflowDelegationAct—PaymentPurchase OrdersProcurement CardsElectronic Funds TransfersAct—FulfillmentReact—Customer ServiceInformation CommerceValue PropositionBusiness ModelsAdvertiser SupportSubscription ServicesBundling ArrangementsDocument SalesUsage-Based ChargingInformation MarketplaceDifferences in Relation to Consumer Retail and Business-to-Business CatalogingRequirements for Customer SystemsInteract—ContentAct—Order ProcessingAct—PaymentElectronic CashMicrotransactions and TokensTransaction AggregationAct—FulfillmentDownloadingSubscriptionsPush ContentReact—Customer ServiceCopy Protection and Rights ManagementSummary
5. Conflicting Goals and Requirements
Goals of the ParticipantsBuyersRetail CustomersBusiness CustomersSellersFinancial ProcessorsGovernmentThe Role of StandardsLate Versus Early StandardizationLate StandardizationEarly StandardizationStandards for Internet CommerceStandards of Good PracticePrivacy Versus MerchandisingPlatform for Privacy PreferencesCookiesWhat Are Cookies?What Are the Benefits?What Is the Downside?Summary
6. Functional Architecture
What Is Architecture?Core Architectural IdeasUnderstanding of RolesDecomposition of FunctionsLinking Content to TransactionsTrust ModelsRolesCustomer RolesBusiness RolesRoles and RealityComponentsCustomer Components and ClientsSeller Components and ServersExamples of System ArchitectureWeb Server with Order FormOpen Market Distributed Commerce ArchitectureFederated Commerce SystemBusiness-to-Business PurchasingTransaction Flow in the OBI ModelSummary
7. Implementation Strategies
Organizing for Internet CommercePlanning the ImplementationOutsourcingCustom DevelopmentPackaged ApplicationsWorking with System IntegratorsThe Roles of Internet Service ProvidersCommunications ServicesHosting ServicesApplication Service ProvidersCommerce Service ProvidersWeb ServicesProject ManagementStaying Up-to-DateIssues for the BusinessIssues for the CustomersThe Role of Standards24/7 OperationSecurity DesignMultiorganization OperationSummary

Two. The Technology of Internet Commerce
8. The Internet and the World Wide Web
The Technology of the InternetDevelopment of the InternetDesign Principles of the InternetCore Network ProtocolsPhysical LayerInternet Protocol (IP)Unreliable Datagram Protocol (UDP)Transmission Control Protocol (TCP)Domain Name System (DNS)The World Wide WebWeb FundamentalsUniform Resource LocatorsWeb ProtocolsHyperText Transfer Protocol (HTTP)Secure Sockets Layer (SSL) and Transport Layer Security (TLS)Other Web ToolsAgentsIntranetsExtranetsConsumer Devices and Network ComputersThe Future of the Internet: Protocol EvolutionSummary
9. Building Blocks for Internet Commerce
Components in an Internet Commerce SystemContent TransportPull ContentProtocol VariationsCachingEffects of Caching on Commerce ApplicationsOffline BrowsersPush ContentPeer-to-Peer NetworkingExtension MechanismsMIME TypesPlug-insScriptingAppletsControlsClient Software RequirementsMedia and Application IntegrationE-Mail and the WebTelevision and the WebPrint and the WebServer ComponentsThe Common Gateway Interface (CGI)Beyond CGIServer APIsFastCGIServer-Side ScriptingDatabase-Driven TemplatesProgramming ClientsScriptingJavaActiveXSessions and CookiesWhy Sessions Are ImportantState and SessionsState Kept in DatabaseState Kept in ApplicationState Kept in ClientSession and Client State MechanismsAuthentication MechanismsDynamic URLsCookiesFormsAppletsObject TechnologyCORBACOMJavaBeans/RMIWeb ServicesImplications of Object Technology for Internet CommerceApplication ServersCommerce Client TechnologyAdvantages of Clients for CommerceDisadvantages of Clients for CommerceClient FunctionalityCommerce Client ExamplesDelivering Digital GoodsSecuring DeliveryFailure RecoveryAuditabilityRights ManagementSecure Container TechnologyFingerprinting and WatermarksSummary
10. System Design
The Problem of DesignA Philosophy of DesignUnderstanding the Customer's RequirementsPlanning for EvolutionStarting SmallKeeping Options OpenDeveloping an ArchitectureAn Architectural ApproachPerformance and ScalingReliabilityTransactionsManaging StateSecurityDesign Principles Versus Technology FadsSummary
11. XML and Web Services
What Is XML?XML Content for PeopleXML as an Interchange FormatWhy XML Is SuccessfulOrigins of XMLOther OptionsBasic XML Standards and TechnologiesXMLNamespaces and SchemasDOM and SAXXPathXLink and XPointerXSL and XSLTXML for PresentationXML for Data ExchangeOAGIebXMLRosettaNetXML for Communications—Web ServicesThe Vision of Web ServicesRemote Procedure CallsSOAPWSDLUDDIXML for ApplicationsXML Data StorageXML ProcessingXML TransformationXML Data AccessSummary
12. Creating and Managing Content
What the Customers SeeBasic ContentBasic FormattingTextListsImagesFormsAdvanced FormattingTablesFramesImage MapsControlling AppearanceWeb Pages and FormsImagesImage MapsMultimediaOther Types of ContentVRMLPDFFlash and ShockwaveTools for Creating ContentDesktop Publishing ToolsDatabase ConnectorsManaging ContentCreationEditingStaging and TestingContent TestingLink TestingCommerce TestingIndexingEditorial ReviewProductionArchivingMultimedia PresentationPersonalizationAuthentication and IdentityBrowser CookieName and Password for a Single SiteCentral Authentication Database with DelegationPersonal Digital CertificatesUser ProfilesRegistration InformationOptional User-Supplied InformationLinked InformationBrowsing InformationStoring ProfilesCustom ContentPersonal NewspaperCustom CatalogMerchandisingSummaryIntegration with Other MediaURLs in AdvertisingCD-ROMs and DVDsE-Mail and the WebWireless and Mobile DevicesSummary
13. Cryptography
Keeping SecretsTypes of CryptographyAlgorithms, Modes, Protocols, and Key ManagementHow to Evaluate CryptographyCryptographic StrengthOperational ChoicesKey LengthKey UpdatesOne-Time PadsSecret-Key (Symmetric) CryptographyBlock Ciphers and Stream CiphersSecret-Key CryptosystemsPublic-Key (Asymmetric) CryptographyA Public-Key Cryptography ExamplePublic-Key CryptosystemsRSAElliptic CurvesModesElectronic Codebook ModeCipher Block Chaining ModeCipher Feedback ModeOutput Feedback ModeProtocolsCommunicationsMessage Digests and Hash FunctionsMessage Authentication CodesDigital SignaturesTimestampsCertificatesKey ExchangeSecret SharingKey ManagementKey GenerationKey StorageKey DestructionKey DistributionCertificates and Certificate AuthoritiesSummary
14. Security
Concerns About SecurityWhy We Worry About Security for Internet CommerceThe Physical World Does Worry About SecurityOur Computers Are ConnectedThe Network Is PublicThe Network Is DigitalComputers Collect DataComputers Can Be ProgrammedWithout Good Security, Computer Fraud Is UntraceableComputers Are Not Perfect Replacements for HumansThe Internet Seems Anonymous and DistantInformation Commerce Is DifferentThe Legal System Must Catch UpThere Are Proven Paths of AttackBecause We CanRisk of the UnknownThinking About SecurityTechnologyPolicies and ProceduresPeopleSecurity DesignCreating the Security PolicyDesigning the EnvironmentDesigning the Application Security MechanismsMonitoring and AuditingAnalyzing RiskAdversariesThreatsBasic Computer SecurityKey Security IssuesSecurity PrinciplesBasic Internet SecurityClient Security IssuesMethods of Attack on Client ComputersPhysical Access to the ComputerOpportunistic Introduction of Software (Viruses)Network Security ProblemsDirected Attack over the NetworkProtocol AttacksTempestPurposes of Attacks on Client ComputersAnnoyanceUse of ResourcesDestruction of InformationTheft of InformationUse of CredentialsServer Security IssuesMethods of Attack on Server ComputersLogging in as an Ordinary UserExploiting Bugs in ApplicationsExploiting Incorrectly Set Security ControlsPurposes of Attacks on Server ComputersAccess to InformationAlteration of InformationAccess to Security CredentialsDenial of ServiceAchieving Application SecurityFirewallsAuthenticationPasswordsChoosing PasswordsChanging PasswordsUsing Passwords at Multiple SitesPassword StorageDefault PasswordsOther Authentication TechnologiesOne-Time PasswordsHardware Tokens and Smart CardsAuthentication on the WebDirect AuthenticationBasic AuthenticationDigest AuthenticationLogin FormsClient CertificatesIndirect AuthenticationServer AuthenticationWeb SessionsSummary
15. Payment Systems
The Role of PaymentA Word About MoneyReal-World Payment SystemsCashCredit Cards, Charge Cards, and Debit CardsPackaging a Payment SystemHow Credit Card Transactions WorkRisk ManagementInternational IssuesChecksElectronic Funds Transfer (EFT) and Automated Clearinghouse (ACH)Purchase OrdersAffinity ProgramsPrivate-Label CardsMoney OrdersCorporate Purchasing CardsCouponsGift CertificatesSmart CardsOnline Credit Card PaymentSecure CommunicationSecure Electronic Transactions (SET)3D SecureElectronic CashCash CardsDigiCashMicropaymentsBusiness Models for MicropaymentsTechnical Micropayments SystemsMilliCentNetBillTransaction AggregationPeer-to-Peer Payment SystemsPayment in the AbstractBusiness-to-Business CommerceInformation CommerceSummary
16. Shopping Carts and Order Management
OverviewShopping CartsServer-Side Shopping CartsClient-Side Shopping CartsProtocol-Based Shopping CartsManaging Shopping CartsItem SelectionSaved Shopping CartsPurchase Order Information FlowBusiness-to-Consumer CommerceOrder Processing SubsystemsOrder ValidationTaxesShippingInventoryBusiness-to-Business CommerceBacking ERP SystemOpen Buying on the InternetThe Internet as a Replacement for EDIShopping Cart PresentationAbandoned Shopping CartsSummary
17. Transaction Processing
Transactions and Internet CommerceOverview of Transaction ProcessingTwo-Phase CommitTransaction Processing in Internet CommerceIntegrating External Systems with TransactionsImplementing TransactionsDatabase EnginesTransaction Processing MonitorsApplication ServersApplication CodeClient SoftwareImplementing Transaction Processing SystemsFilesDatabasesTP MonitorsKeeping Business RecordsCore Business RecordsCollateral Business RecordsGovernment RecordsRecord Life CycleDesign Implications of Record KeepingMutable and Immutable RecordsFailure and Transaction SemanticsAccess PatternsLoggingAuditsSummary
18. Integration with Enterprise Applications
The Details Behind the ScenesEnterprise Systems ArchitectureIntegration PitfallsMiddlewareLayers of MiddlewareTypes of MiddlewareMessage-Oriented MiddlewareRemote Procedure CallPublish-SubscribePlanning Considerations for MiddlewareNamingSecurityExternal CommunicationsEnterprise Resource Planning SystemsTaxesSales Tax in the United StatesSeller InformationBuyer InformationProduct InformationTransaction InformationCanadian Goods and Services TaxValue-Added TaxLogistics, Shipping, and HandlingPricing of Shipping and HandlingInternational TransportCustoms DutiesPaperworkTransport and TrackingPrivacyAnonymityTracking NumbersAdvanced LogisticsWarehouse SelectionThe Virtual CorporationInventory ManagementThe Virtual WarehouseCatalog InterfacesTransaction InterfacesMerchant InterfacesEnterprise Resource Planning InterfacesAdministrative InterfacesExample: SAP IntegrationGeneral ScenarioSummary
19. Reliable and Scalable Systems
OverviewEnterprise-Class ConceptsReliabilityAvailabilityHigh-Availability SystemsApproaches to High AvailabilityBuilding Highly Available SystemsBasic Reference ArchitectureRedundant Web ServersStandby Database ServersMirrored Storage SystemOperational IssuesReplication and ScalingBackup and Disaster RecoverySummary
20. Mobile and Wireless Systems
Overview of Mobile and Wireless TechnologiesA Range of DevicesWireless PDAsOne-Way PagersTwo-Way PagersMobile PhonesSmart PhonesSome Detailed ExamplesPalm VIIEarthLink Wireless: Palm Vx with Novatel ModemSprint PCS Wireless WebRIM BlackBerryWireless LAN TechnologySecurity and the Wireless LANThe Mobile User ExperienceOutsourcingSummary
Three. Systems for Internet Commerce
21. Putting It All Together
Building Complete SystemsFederated Commerce SystemConsumer ServicesValue-Added ServicesWho Pays Whom?System FunctionalityWalking Through a TransactionDigital GoodsSubscriptionsSystem ArchitectureSeparating Content from TransactionsReduction of Operational CostsEnabling of Service ProvidersProvision of Security ContainmentSupporting a Broad Range of ApplicationsSupporting System ScalingSupporting System EvolutionFunctional EvolutionTechnological EvolutionTransaction EngineBuyer Applications: User Interface and APIsBuyer Applications with User InterfaceBuyer APIsSeller Applications and APIsSeller ApplicationsSeller APIsOperator Applications and APIsOperator ApplicationsOperator APIsSystem FunctionalityBusiness-to-Business CommerceBusiness-to-Consumer CommerceInformation CommerceCase Study: Business-to-Business SystemThe UsersContent SystemsProduct DatabaseCatalogConfiguratorTransaction SystemOrder SourcesOrder DestinationsCase Study: Business-to-Consumer SystemOverall System ArchitectureContent SystemsCatalogContent ManagementContentBusiness LogicAnalyticsTransaction EngineCase Study: Information CommerceContent ServersSubscription ServerSummary
22. The Future of Internet Commerce
TrendsHardware Technology TrendsSoftware Technology TrendsSoftware Development and Standardization TrendsInfrastructure TrendsApplication TrendsDiscontinuitiesStaying Up-to-DateStrategic Imperatives
Resources and Further Reading
Chapter 1—IntroductionChapter 2—The Commerce Value ChainChapter 3—Internet Business StrategyChapter 8—The Internet and the World Wide WebChapter 9—Building Blocks for Internet CommerceChapter 10—System DesignChapter 11—XML and Web ServicesChapter 12—Creating and Managing ContentChapter 13—CryptographyChapter 14—SecurityChapter 15—Payment SystemsChapter 17—Transaction ProcessingChapter 18—Integration with Enterprise ApplicationsChapter 19—Reliable and Scalable SystemsChapter 20—Mobile and Wireless SystemsChapter 22—The Future of Internet Commerce

Overview

Thanks to advances in Internet commerce, every enterprise—even the smallest home-based business—now has the power to create a global presence. Each day, more businesses are drawn to the promise of increased access to customers, combined with dramatic cost reductions. However, consumer expectations and demands seem to increase daily. The major challenge in building successful Internet commerce sites continues to be how to use Internet technology most effectively to deliver added value to customers.

Written by two of the leading authorities in the field of Internet commerce, Designing Systems for Internet Commerce, Second Edition, explores the core issues surrounding the construction of successful Internet commerce systems. It provides a solid foundation, focusing on best practices and approaches for Internet architecture and design. This significant new edition reflects lessons learned since the late 1990s, explaining how and why essential technologies and commerce issues have evolved and how those changes have resulted in a new era for commerce systems. Topics covered include:

Extensible markup language (XML)

The evolution of shopping carts and order management

Integration with enterprise applications

Development of reliable and scalable systems

Mobile and wireless systems and technologies

Designing Systems for Internet Commerce is your key to building a commerce site that will meet your business needs and satisfy demanding customers.

With a focus on problem solving, the authors share their mastery with you as they explore the major challenges and obstacles related to Internet commerce architecture and strategy. This comprehensive coverage includes:

Core Internet business strategy

Retail and B2B systems

Information commerce business models with case studies

Functional architecture

Implementation strategies, such as outsourcing, custom development, packaged applications, project management, 7x24 operation, and multiorganization operation

The building blocks of Internet commerce, including media and application integration, sessions and cookies, object technology, and application servers

Proven strategies for system design

Creating and managing content

Essential considerations in cryptography and system security

Payment systems and transaction processing

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