E-Commerce Web Sites

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(2) A Business-to-Consumer Perspective.

(3) • 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!.

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(6) Obligatory marketing fluff.

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(10) Yesterday. Today. Content publishing. 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.

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

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(15) MRO & Production Procurement. EC Enablement of ERP . ERP/Storefront integration. Supply Chain Management.

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(17) ! • E-Commerce Web Sites targeted to grow from 350,000 to 1.2M by Year 2000 1 • Merchants Benefit. CAGR = 48%. Non E-Comm Web Sites. • New Global Sales Channel. CAGR = 81%. E-Comm Web Sites. • Enhanced target marketing ability • Faster information and product updates • “Virtual” Inventories • Cost Effective Sales Channel • Provides enhanced customer service. 900. • Buyers Benefit. 770. • 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 1. 580. 1,200. 455 630 195. 1997. 350. 1998. Source: Interactive Week, IS Manager Survey, September 1997 225 IS managers polled at commercial sites of varying size. 1999. 2000.

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(19) • 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: 1996 - 11%, 1997 - 20% (Source: CSC and “Retail Info Systems News” 293 IS Execs at Major Retailers.).

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(22) " Where the Rubber Meets the Road.

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(26) Transactional Security. Administration. Shipping Services. Storefront. Order Tracking Services. Payment Systems. Database. Tax Services. Traditional Enterprise Solutions. Fulfillment Services.

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(33) ' • • • • • • • • • •. 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.

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(36) • Content maintenance, inventory management, fulfillment, customer service, order status, sales tracking, accounting integration, etc. • Many early adopters using manual integration – – – – – –. Automatic email 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.

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(39) ( 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. Information about the customer/shopper is added to the Order Form at this stage.. Item Price. The most current Regular Price information for each product in the Item List is initialized and verified.. Item Adjust Price. This stage initializes the Current Price for each product in the Item List. This is where sales or promotions or discounts are handled.. Inventory. 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..

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(41) " ) *+ ,(( 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.

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

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(46) " )*+ , ( ( 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..

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(48) $ ( ( 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. 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.. Add Header. Elements are added or removed from the Transport Dictionary including sender/receiver addresses, receipt requests, a transaction ID, date and time.. Digitally Sign. This stage determines the type of digital signature and digitally signs the Business Data Object. SSCE includes support for PKCS7 and S/MIME.. Encrypt. 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.. Audit. Various values from the Business Data Object are written to the audit database.. Transport. 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..

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(50) $ ( + ( 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. The type of encryption is determined. The Business Data Object is decrypted using certificates. PKCS7 and S/MIME are supported.. Verify Digital Signature. This stage determines the type of digital signature and verifyies the signature. SSCE includes S/MIME and PKCS7 support.. Open Header. 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.. Generate Receipt. Return receipt is generated in this stage, if requested, by creating a return receipt business object and invoking a transmit pipeline to send.. Map. This stage converts working data into a Business Data Object. Can include regeneration of the Business Data Object from XML.. Audit. Various values from the Business Data Object or receipt are written to the audit database.. Application Integration. 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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(53) Browser. IIS 3.0 or Higher. ASP/ DCOM/ ADO / MTS. +($

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(56) " . 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.

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(60) " " 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..

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(65) 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..

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(70) )" " • 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.

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(72) 1 " Pipe Dream or Reality.

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(75) / • 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.

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(78) & 333 Store Performance on a ProLiant 850 6 5 4. Volcano Coffee. 3 2 1 0. Clock Peddler. Relative ASP Perform ance. 4

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(83) . ASP/second 16 14 12 10 8 6 4 2 0 1850R 128 M RAM. 850R 128 M RAM. 850R 160 M RAM.

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(87) •. •. •. •. 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.

(88) #&$" • 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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(94) . . Data Resource . . 1.

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(96) . Database/File Server J e f f P l a n k. • 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.

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(98) . 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.

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(100) 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.. Internet. J e f f P l a n k. Load Balancer. Router.

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

(105) " " • 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. 8.0. 7.0 1.2 1.1. 6.0. 1.0. 0.9 1.1. 5.0. CS6 1.2. 1.3 4.0. 1.0. CS5 CS4. 1.2. CS3 1.1. 3.0. 2.0. 1.1. 1.0. 1.1. 1.1. 1.0. 1.0. 1.4. 1.1. 1.1. 1.2. 1.0. 1.0 1.3. 1.1. 1.3. 1.1. 1.0. 7. 6. 5. 4. 3. 2. 1. 0.0 Web Site Configuration. CS2 CS1. 1.1.

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(107) " • 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.

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(110) , • 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.

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(112) Show Me the Money.

(113) ( " • 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..

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(115) . ". . . # $ . Internet. ! . ". . ?. . . . !. . Private Networks.

(116) ( " • 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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(123) *"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.

(124) " ( 1 Seller To decrease fraud and card-processing fees and to embrace Internet revenue. Card brands To expand card use and revenue via the Internet while assuring fraud control Buyer To have a secure and trusted environment. Financial Institutions To reduce fraud rate, increase transaction/ interest revenue, enhance/retain payment franchise, and open new revenue opportunities.

(125) ". •. 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..

(126) "". •. 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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(147) !" # • 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). *http://www.microsoft.com/siteserver/commerce/partners/paymentsolutions.asp.

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(150) • • • •. 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.

(151) " Great, Now What Can I DO!.

(152) " • 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.

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(154) , • 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?.

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(156) ! $&: • 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.

(157) • 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.

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