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Invitation to Computer Science 5th Edition
Chapter 14
Electronic Commerce and Databases
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Objectives
In this chapter, you will learn about:
• E-commerce
• Databases
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Introduction
• E-commerce world– Financial transactions are conducted by electronic
means
• E-business – Orders are processed, credit is verified, transactions
are completed, debits are issued, shipping is alerted, and inventory is reduced, all electronically
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E-Commerce
• Do you want to:– Broaden your customer base?– Recapture customers you are losing to competitors
with online stores?– Better serve your existing customer base?– Better integrate departments/functions within your
existing business?
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The Vision Thing
• Risks involved with moving into e-commerce– Will you just move your in-store customers online
and achieve no overall gain?– When you expose yourself to online competition, will
you have something unique to offer?– Does your existing customer base need or want
anything that you don’t or can’t provide in your traditional business environment?
– Are the employees in your Shipping and Accounting departments in agreement with this idea?
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The Vision Thing (continued)
• Costs involved– Do you have all the necessary hardware
(computers), software, and infrastructure (network connectivity) to host a business Web site?
– Do you have the personnel and skills you need to build and maintain a Web site?
– Do you know the potential costs of diverting resources away from your existing traditional business?
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Decisions, Decisions
• First major decision – Choose between in-house development and
outsourcing– Are you going to use your existing staff to develop
this e-business– Will you lease space on someone else’s commercial
Web server
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Anatomy of a Transaction
• Goals– Draw potential customers to your site– Keep them there– Set up optimum conditions for them to complete a
purchase
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Figure 14.1 A Typical Online Transaction in Nine Steps
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Step 1: Getting There
• How does your potential customer learn your URL?– Conventional advertising– Obvious domain name– Search engine– Portal
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Step 2: Do I Know You?
• Cookie – Small text file that Web server sends to user’s
browser that gets stored on the user’s hard drive
• Stateless– No information about the exchange is permanently
retained by the server
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Step 3: Committing to an Online Purchase
• Encryption – Encodes data to be transmitted into a scrambled
form
• Authentication – Process of verifying the identity of the receiver of the
data
• Spoofing – Practice of impersonating a legitimate site for the
purposes of stealing money or stealing identity
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Figure 14.2 Secure Site Assurance
Steps 4 and 5: Payment Processing
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Steps 6–9: Order Fulfillment
• Step 6– Once customer’s credit is approved, order entry
system must alert inventory system
• Step 7– Contact shipping system
• Step 8– Shipping system works with the shipping company
• Step 9– Pick up and deliver the purchase to the customer
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Designing Your Web Site
• Taxonomy– How information is classified and organized so
customers can easily find what they want
• Site map or a navigation bar – Can provide a high-level overview of your site
architecture
• CRM (customer relationship management) strategy– Improve customer satisfaction– Build customer relationships– Bring people back to your Web site time and time
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Behind the Scenes
• Middleware– Software that allows separate, existing programs to
communicate and work together seamlessly
• Disaster recovery strategy– What are your plans for backing up critical data? – What is your plan to keep your online business open
even when your server fails?– What will you do if a hacker breaks into your Web
site and steals customer information?
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Databases
• Bit– Most basic unit of data– Combined into groups of eight called bytes
• Fields– Group of bytes
• Record– Collection of related fields
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Databases (continued)
• Data file– Stores related records
• Database– Made up of related files
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Figure 14.3 Data Organization Hierarchy
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Figure 14.4 Records and Fields in a Single File
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Figure 14.5 One Record in the Rugs-For-You Employees File
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Database Management Systems
• Manage the files in a database
• Entity– Fundamental distinguishable component
• Attribute– Category of information
• Primary key– Attribute or combination of attributes that uniquely
identifies a tuple
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Figure 14.6 Employees Table for Rugs-For-You
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Database Management Systems (continued)
• Query languages– Enable user or another application program to query
the database, in order to retrieve information
• Composite primary key – Needed to identify a tuple uniquely
• Foreign key– Key from another table that refers to a specific key,
usually the primary key
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Figure 14.7 Insurance Policies Table for Rugs-For-You
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Figure 14.8 Three Entities in the Rugs-For-You Database
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Other Considerations
• Performance issues – Affect the user’s satisfaction with a database
management system
• To significantly reduce access time:– Create additional records to be stored along with the
file
• Distributed databases – Allow the physical data to reside at separate and
independent locations that are electronically networked together
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Summary
• E-business– Every part of a financial transaction is handled
electronically
• Opening an online store– Requires a significant amount of planning
• Database– Allows data items to be stored, extracted, sorted, and
manipulated
• Relational database model– Conceptual model of a file as a two-dimensional table
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