E-Commerce Web Sites

Transcription

1 A Business-to-Consumer Perspective

2 Electronic Commerce Landscape: Obligatory Marketing Fluff Business to Consumer Success Criteria: Where the Rubber Meets the Road High Availability, High Performance and Near Linear Scalability: Pipe Dream or Reality Payment System Integration: Show Me the Money Summary: Great, Now What Can I DO!

3 Obligatory marketing fluff

4 Yesterday Content publishing Today Business applications Attributes Easy publishing Easy info access Rich content Sample applications Employee Handbook Sales reports Price list Rapidly evolving Web technology Increasing user demands Attributes Ability to act on info Manageability TCO Best practices Sample applications E-Commerce Benefits management Sales force automation Source: Microsoft

5 EC Infrastructure (financial systems, payment processing) WEB STOREFRONT BACK OFFICE Consumers / Business Purchasers

6 MRO & Production Procurement EC Enablement of ERP ERP/Storefront integration Supply Chain Management

7 ! E-Commerce Web Sites targeted to grow from 350,000 to 1.2M by Year Merchants Benefit New Global Sales Channel Enhanced target marketing ability Faster information and product updates Virtual Inventories Cost Effective Sales Channel Provides enhanced customer service Buyers Benefit Enables customized information presentation Merchant can track purchase history Increases shopping convenience while decreasing purchase time. Facilitates efficient product comparisons Cost Effective Sales Channel Provides enhanced customer service Non E-Comm Web Sites E-Comm Web Sites Source: Interactive Week, IS Manager Survey, September IS managers polled at commercial sites of varying size CAGR = 48% CAGR = 81% 900 1,

8 " Market is in early adopter stage ISVs and online retail companies proving concept No single market leader for comprehensive EC solutions Plans for Web based retailing (business-to-consumer) growing 44% of companies plan to sell over the Internet in the next 24 months (Source: Zona Survey, 1998) 53% of US business Web sites reporting sales activity (Source: Direct Magazine online survey. 2/23/98) 30% of worldwide Web retail sites are profitable (Source: ActivMedia, Inc.) US retailers offering online shopping programs: %, % (Source: CSC and Retail Info Systems News IS Execs at Major Retailers.)

9 " Where the Rubber Meets the Road

10 #" $ Transactional Security Administration Shipping Services Tax Services Storefront Traditional Enterprise Solutions Order Tracking Services Payment Systems Database Fulfillment Services

11 % &% ' Transactional Security Store/System Administration Shipping Services Tax Calculation Tools/Services Business Process Integration Order Tracking Order Fulfillment Back Office Integration Payment Systems Database Connectivity

12 ( $ Content maintenance, inventory management, fulfillment, customer service, order status, sales tracking, accounting integration, etc. Many early adopters using manual integration Automatic or fax for order fulfillment Little/no on-line order status capability Doesn t take full advantage of technology Rapid growth can result in process breakdown Reduced cost and speed of entry Should plan for rapid transition to full integration Full integration is preferred - may be barrier to entry High Systems Engineering value add potential Commerce Server features simplify the job

13 ") *+, ( ( Product Information This stage contains components that retrieve product information. If information is not available, components at this stage can mark the item for deletion. Deletion occurs at the end of this stage. This stage fills in the Items List of the Order Form. Shopper Information Item Price Information about the customer/shopper is added to the Order Form at this stage. The most current Regular Price information for each product in the Item List is initialized and verified. Item Adjust Price Inventory This stage initializes the Current Price for each product in the Item List. This is where sales or promotions or discounts are handled. Every product in the Item List is checked against known inventory. If a product is not in inventory, it is flagged in the Item List.

14 ") *+,(( Product Information This stage iterates through the Item List retrieving/verifying Product Information. If an item cannot be retrieved it is deleted at the end of the stage. Merchant Information Static Merchant Information is retrieved and written to the Order Form. Shopper Information Shopper Information is retrieved/verified at this stage. Order Initialization This stage sets initial order information and verifies the Order ID. Order Check Verification that the order can be processed is done at this stage. If necessary and possible, the order is altered to correct any problems. Continued

15 ")*+, ((*, Item Price The most current Regular Price for each item in the Item List is set/verified here. Handling The total handling charge is computed and stored in the Order Form. Item Adjust Price Order Adjust Price Order Subtotal Any promotions or discounts for each item are set in this stage as the Current Price. This stage sets the adjusted price of each item. It handles quantity price adjustments and overall order price adjustments. This stage calculates the Order Subtotal and stores it in the Order Form. Tax Order Total This stage computes sales tax for each item in the order and writes totals to the Order Form. This stage sums the subtotal (less any discount), shipping, handling, and tax and sets the order total. Shipping The total shipping charge for the order is computed and stored in the Order Form. Inventory This stage verifies each item in order is in inventory or flags item.

16 ")*+, ( ( Purchase Check Payment Accept This stage verifyies the address and credit-card information provided meets certain validation criteria. Credit-card payments are approved in this stage. If other types of payments are supported, verification of the payment is done here. This stage handles the complete order, including initiating order tracking, generating purchase orders, inventory updates, etc.

17 $ (( The CIP Transmit Pipeline packages and transmits a Business Data Object to a business partner. The CIP Transmit Pipeline consists of the six stages depicted here. Map Add Header Digitally Sign Encrypt Audit Transport This stage converts the Business Data Object into a transmissible format and stores it in the working data. SSCE includes components to generate a XML encoding and a text based Purchase Order based on a PO template. Elements are added or removed from the Transport Dictionary including sender/receiver addresses, receipt requests, a transaction ID, date and time. This stage determines the type of digital signature and digitally signs the Business Data Object. SSCE includes support for PKCS7 and S/MIME. The type of encription is determined and executed on the Business Data Object using certificates. Microsoft's CryptoAPI is supported along with PKCS7 and S/MIME. Various values from the Business Data Object are written to the audit database. The Business Data Object is transmitted to its destination. Several 3rd parties provide EDI and like transport components. SSCE includes components to send working data via DCOM to a remote CIP, send working data via HTTP POST, send working data via SMTP, and send the Transport Dictionary to a remote CIP.

18 $ (+ ( The CIP Receive Pipeline receives a Business Data Object from a business partner and presents this data to an application to complete the reception of the business partner's data. The CIP Receive Pipeline consists of the seven stages shown here. Decrypt Verify Digital Signature Open Header Generate Receipt Map Audit Application Integration The type of encryption is determined. The Business Data Object is decrypted using certificates. PKCS7 and S/MIME are supported. This stage determines the type of digital signature and verifyies the signature. SSCE includes S/MIME and PKCS7 support. Elements are added or removed from the Transport Dictionary including sender/receiver addresses and receipt requests. This stage unpacks the data added in the Add Header stage of the Transmit Pipeline. Return receipt is generated in this stage, if requested, by creating a return receipt business object and invoking a transmit pipeline to send. This stage converts working data into a Business Data Object. Can include regeneration of the Business Data Object from XML. Various values from the Business Data Object or receipt are written to the audit database. This stage maps the Business Data Object to a format readable by the target application then executes the application. The application may place data in a database or export a transaction to some order processing system, etc.

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21 +($ /)"( " Browser IIS 3.0 or Higher ASP/ DCOM/ ADO / MTS Windows NT SAP R/3 DCOM Component Connector MTS/ DCOM RFC SAP R/3 Database Server SAP R/3 Application Server Traditional SAP R/3 System

22 "" Commerce Server is a comprehensive Internet server, optimized for Windows NT Server with Internet Information Server, that enables businesses to cost-effectively engage and transact with customers and partners online. Development and deployment environment for electronic business applications. Database schema independent - ODBC compliance provides flexibility for housing product catalogs. Supports Active Server Pages (ASP) - Wide support for development of ASP applications including VBScript. Sample Sites Included - Starter sites and Site Authoring Tools enable faster time to deployment. Order Processing Pipelines - Series of stages for working through the payment, taxing, shipping, and fulfillment processes.

23 "" Commerce Server is a comprehensive Internet server, optimized for Windows NT Server with Internet Information Server, that enables businesses to cost-effectively engage and transact with customers and partners online. Extensible architecture - Pipelines support integration of additional components including COM and DCOM components. Ad Server - The ability to host, manage, and present customized online advertising. Intelligent CrossSell - Recommend products of interest to customers based on historical trends and transaction information Purchase and Order History - Shoppers and merchants can review orders. Site Builder Wizard - Create custom storefronts quickly and easily using a step-by-step approach.

24 ")" " Ability to address merchant considerations for creating, deploying, and maintaining an EC storefront Business Process Integration Performance, scalability, and availability of storefront solutions Selection and integration of components to build and/or enhance storefront Secure processing of on-line credit card transactions

25 0%0( 1" Pipe Dream or Reality

26 " 2 / Without the right architecture, success means failure What s the plan for handling expected/unexpected temporary traffic spikes? What s the long term scalability plan? You never get a second chance to make a first impression 10 seconds is the response time limit for keeping the user s attention Web users do not have to tolerate poor quality

27 ( " &333 Store Performance on a ProLiant Relative ASP Performance Volcano Coffee Clock Peddler 4

28 (.( )# "" ASP/second R 128 M RAM 850R 128 M RAM 850R 160 M RAM

29 &$" *&$", 5( Linear Scalability Easily add ASP capacity with inexpensive industry standard servers Capable of handling extremely high loads High Availability Gracefully accommodates hardware and software failures No single points of failure High Value More performance and availability per dollar than alternatives Leverages all the price/performance benefits of industry standard platforms without compromising on scalability and availability Compatibility with Prevailing Web Applications Works with Microsoft Active Server Pages, Microsoft Commerce Server, CGIs, Allaire Cold Fusion, NetDynamics, HAHT Software HAHTsite, and Netscape Application Server

30 #&$" Balancing load across multiple application servers is preferred over deploying a single server with lots of memory and processors Centralizing content on amply configured, clustered servers is preferred over replicating it on application servers Use redundancy at all potential single points of failure Build applications so that user state information is not maintained on a single application server

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32 J e f f P l a n k " Database/File Server Single IIS/Commerce Servers Separate Database/File Server Established a platform for growth Easier backup and recovery of database and files. IIS/Commerce Server Internet Router

33 J e f f P l a n k " Database/File Server Multiple IIS/Commerce Servers Spreads HTTP requests across multiple platforms. Switch to facilitate access to files Scalable as load increases Internet Load Balancer Router

34 J e f f P l a n k " Multiple IIS/Commerce Servers Multiple Database/File Servers - Cluster Ready Provides highly-available database/file server. J e f f Internet P l a n k Load Balancer Router

35 ". ("" &$" ProLiant 850 Entry Configuration Upgrade Path START ProLiant 6500 Single Server Configuration+ Two Server Configuration DISA Configuration

36 " " Multiple ProLiant 850Rs as Compute Server (IIS/Commerce Server) One ProLiant 6500 for Database and File Server Backend DNS Round Robin Used for Load Balancing Normalized Performance Shown (Single Proliant 850R = baseline of 1.0) Normalized Performance CS6 CS5 CS4 CS3 CS2 CS Web Site Configuration

37 &$"! " The DISA architecture is the only effective approach for scaling up this particular application The DISA architecture handles failure events with minimal performance impact and little or no downtime Current NT Clustering technology can significantly improve availability (but not scalability) While nothing beats an inexpensive standalone server for value alone, DISA delivers the best price/performance for highly available, highly scalable systems With the DISA architecture, industry standard platforms can provide uncompromising availability, scalability, value, and manageability for Microsft Commerce Server Storefronts

38 &$"! "*, Key trends show that scalability and availability of Internet/Intranet applications is an increasingly important concern The DISA architecture allows enterprises and ISPs to build bulletproof, high performing Internet applications using industry standard platforms Compaq testing confirms that the Distributed Internet Server Array (DISA) Architecture delivers linear scalability and extremely high availability for Commerce Server storefronts

39 ("$ Show Me the Money

40 (" Provide an end to end method of enabling online transactions over the Web. Technology mimics the components in the physical world with client side wallets, web server POSs, and payment approval networks The main emphasis of payment software consists of connecting a Web Storefront to a payment network via some gateway.

41 (" "?! # $ "! Internet Private Networks

42 (" There are several critical factors to consider in selecting your payment system: Compatibility with Acquiring (Merchant s) Bank Location of the Internet Gateway Security method (SET or SSL) Fault Tolerance and Performance Expansion Integration with Commerce Server 3.0

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44 " *"6, SET is an open, published protocol enabling secure card payments via the Internet Current/future solutions that implement SET helping to address barriers to widespread acceptance of SET standard Broad implementation of SSL for secure transactions Interoperability of SET solutions Benefits of SET Utilizes existing financial infrastructure Authenticates each participant in the transaction Reduced transaction processing costs Reduced consumer and merchant fraud Reduced transaction fees for merchants Increased overall buyer confidence

45 " (1 Seller To decrease fraud and card-processing fees and to embrace Internet revenue Buyer To have a secure and trusted environment Card brands Card brands To expand card use and revenue via the Internet while assuring fraud control Financial Institutions To reduce fraud rate, increase transaction/ interest revenue, enhance/retain payment franchise, and open new revenue opportunities

46 " Consumer must have bank issued wallets with a certificate vouching for the consumer identity Merchant Side SET Certificates Required Credit Card Numbers not visible to the merchant Merchandise purchased not visible to the bank Bank assured of both customer and merchant identities.

47 "" Public Key Encryption to the Web Server - no client certificate required Merchant Side Certificates Required Credit Card Numbers visible to the merchant No proof that card number matches with consumer submitting the request Encryption based on type of payment system Bank has proof of Merchant identity but not of consumer

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51 $! "839!" # Testing Completed Cybercash PaylinX ITP Payserver Testing in Process Verifone ICVerify Buyway $ % Cybersource DataCash LTD (Europe) GC Tech Litle Net Tellan Software Inc. Trintech (US & Europe) *

52 ( Understanding the banking process Selecting the security method (SSL / SET) Selecting the type of payment solution Selecting the appropriate hardware configuration to support it Leverage activeanswers for planning, deployment, and operations information

53 " Great, Now What Can I DO!

54 " Electronic Commerce market is exploding Success requires integration of business processes with technology to handle a variety of functions Without a flexible, highly available, scalable deployment architecture, success WILL lead to failure - Commerce Server on DISA Storefronts generate revenue streams - Transaction Security/Payment System Integration and scalability of the payment solution are key

55 "*, Every customer visit could be an Electronic Commerce opportunity - What to look for... Web presence without on-line transactions or Existing product/inventory database or Point of sale system with accounting interface or Desire to expand sales volume and/or geography... Could be an opportunity to create Commerce Server storefront leveraging off of existing IT investment Are you ready to play in this market?

56 -%1!$&: Acquire the knowledge DISA concepts and components of the DISA architecture Active Server Page scripting language (VBScript, JavaScript/JScript), HTML, COM/DCOM development Database design and development Commerce Server pipelines and third party components Leverage the knowledge to... Create new markets for your business: New Account opportunities are abundant in Electronic Commerce Upsell existing clients Migrate business customers to the Web Turn Web presence sites into revenue generating sites Move manufacturers and distributors to direct sales Add Web Storefront to older technology Leverage database or legacy systems as Data Resources

57 Available today Compaq: Leading the Electronic Business Market Electronic Business: Merchant Considerations for Web Storefronts Microsoft Commerce Server Planning Deployment and Operations Compaq Proliant E-Commerce Servers Coming Soon Overview of Payment Systems Integration of specific payment systems in DISA architecture (Cybercash, PayLinx, itp Pay Server, Verifone, etc.) Managing a DISA deployment of Commerce Server Securing a DISA deployment of Commerce Server Microsoft Site Server Commerce Edition Integration with SAP Merchandising, Promotion, and Customer Loyalty Futures - Business to Business solutions with Commerce Server