WIRELESS TECHNOLOGIES IN B-TO-B AND B-TO-C E-COMMERCE PROCESSES

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1 WIRELESS TECHNOLOGIES IN B-TO-B AND B-TO-C E-COMMERCE PROCESSES Viviana Filip Vlad Nicolae Dumitru Dumitru Ionut Costache Valahia University Targoviste Abstract - In a rapidly transforming economy, the need for a well designed infrastructure is growing in more and more business areas. Companies are now looking towards new field applications in e-commerce, using new wireless technologies over the Internet combined with the old-fashioned Intranet - Extranet solutions. This paper is intended to explain just how much can companies depend on the old infrastructure and why they should upgrade their business to meet the challenges of the new era. Keywords- infrastructure, applications in e- commerce, wireless technologies millions WWW Population Internet Population Fig Internet and WWW Population 2. BRIEF HIS TORY OF E-COMMERCE 1. INTRODUCTION TO E-COMMERCE E-commerce is rapidly transforming businesses as enterprises of all sizes join the new Internet economy. Using the Internet to enter new markets, increase supply chain efficiency, create new value chains and meet the challenges of increased competition and global markets, the majority of ITbased businesses consider B-to-B (Business to Business) and B-to-C (Business to Consumer) e - commerce as critical to their economic survival. Talking about the benefits of e-commerce, many companies consider that streamlined internal processes, increased customer loyalty, increased sales, improved relationships with partners and increased employee productivity are on top of their list. In terms of lowering expenses, companies experienced cutbacks in marketing, sales and distribution costs as a result of their Web initiatives so far. Going forward, companies will strive for results from external and customer-facing initiatives and will rely more heavily on the Internet to improve business activities. One of the most contentious e-commerce issues is in the number of users, which is directly influenced by the size of the Internet user population. There are continued speculations about the accuracy of those figures. A recent research shows the number of Internet users in direct connection with World W ide Web population. The growth rate is estimated at about 20% a year, so in 2005 we should expect a population about 350 millions users. How did e-commerce start and when? It is difficult to answer such a question because of the different opinions circulating these days. Some people say that e-commerce is 6 to 8 years old, others have a different opinion that e-commerce actually started in the late 40s. One thing is sure: in 1946, American Airlines developed the industry's first electrical/mechanical device for controlling seat inventory. It was called The Availability Reservisor, and it applied basic computer file technology to the task of tracking seats and flights. Even though it could not sell the seat or cancel a reservation, the system represented a miles - tone in adapting electronics to airline reservations. In 1952, the same company added basic computer file technology to their flight control system this was actually a random access memory drum with arithmetic capabilities called The Magnetronic Reservisor. Using it, a reservations agent could check seat availability and automatically sell or cancel seats on the electronic drum. In 1959, the intensive research (worth over 40 millions dollars) in the development of data processing systems made possible the construction of a new system that would create a complete reservation and make all the data available to any location throughout American Airlines system. Made in collaboration with IBM, The Semi- Automated Business Research Environment nowadays known as SABRE appeared. Consequently, the ancestor of e-commerce was, in fact, a system created to control seat reservations for American Airlines. 1 The Romanian Review Precision Mechanics, Optics & Mecatronics 2005 (15), No

2 During the 60 s and the 70 s, e-commerce had a very slow growth. A number of forward thinking companies pioneered various techniques for transferring data in formats which would be processed on receipt. The most important realisation was the common data formats, needed for transfers of documents between communities of traders. This led to the creation of communication standards bodies in Europe and the United States. During the 80 s, a large number of Value Added Network (VAN) services were created to provide secure communication channels for business usage. Along with the help provided by the communication standards bodies, they have determined the appearance of users communities in a variety of business sectors. The next step was the creation of EDI (Electronic Data Interchange) a breakthrough in e- commerce s life and in the way of doing business. Using it, companies could send and receive documents without human intervention (see technologies EDI). With the appearance of the Internet, e-commerce suffered major modifications in its basic definition, its functions and application and also into its strategies and investment rates. Simple online stores first appeared in They were virtual catalogues, simply listing products for sale. Ordering was made offline, through , phone or fax. Not much later, Internet technology advanced enough to produce virtual stores with shopping carts, client accounts and, with the development of protocols such as Secure Socket Layer (SSL), enabled customers to order and pay for their purchase online directly by credit card. E-commerce quickly became popular with consumers and suppliers. For customers, it was fast, easy and efficient, allowing them to compare products, prices and services before purchasing. For suppliers, it allowed them to reach an unlimited international audience, 24 hours a day, 7 days a week at reduced costs. That is why e-commerce now means all the stages of an e-business process, form design and production to delivery and sales, but also any exchange of information in an organisation and between them, through a specially designed network (Internet or Intranet). 3. TECHNOLOGIES INTRANET & EXTRANET SOLUTIONS Intranet & Extranet environments are just another part of e-business information management. Building integrated Intranet/Extranet environments provides solutions that enable easy Web access to information by staff and clients without continual intensive work converting andmanaging Web information. An Intranet is a network within an organisation that uses Internet technologies to enable users to find, use, and share documents and Web pages. In some large companies Intranets are used as the primary way for employees to obtain and share work-related documents, share knowledge, collaborate on designs, access e-learning and learn about company news. That kind of interconnectivity allows instant access, either at home or at the office for any required informat ion or service and allows employees to e- mail requests for service or quotes from anywhere. Intranets use traditional Internet protocols, TCP/IP (Trans mission Control Protocol/Internet Protocol) and HTTP (Hyper Text Transmission Protocol), to transfer data. They usually reside behind firewalls, for security, and are not limited by physical location - anyone around the world can be on the same Intranet. Intranets can also link users to the outside Internet, and with the proper security in place may use public networks to transfer data. According to a recent study, the primary purpose of Intranet sites is to streamline internal processes (35%), provide information (like company directories, shared documents, etc.) to employees (21%) and to provide customers with profit information (18%). More than 83% of the companies consider that the Intranet environment is important or critical to their overall business strategy, while the rest of 17% consider it of little to no importance. 26% 18% 17% 21% 35% Internal processes Work related information Profit information Other Fig Opinion about Intranet s use 83% Critical No importance Fig Opinion about Intranet s importance 438 1, 2 ttp:// The Romanian Review Precision Mechanics, Optics & Mecatronics 2005 (15), No. 2 7

3 An Extranet is a private network that uses Internet protocols and the public telecommunication system to securely share part of a business' information or operations with suppliers, vendors, partners, customers, or with other businesses. It can be viewed as part of a company's Intranet that is extended to users outside the company. It has restricted (password-protected) access, so it may be connected directly to each party's internal systems. Extranets can be used to exchange large volumes of data, share product catalogues, share news with trading partners, collaborate with other companies on joint development efforts, develop training programs with other companies, provide or access applications between companies, cut down redundant ordering processes and keep suppliers up to date, to allow quicker response times to suppliers' problems and questions, even to collect or make payments. Although many large companies still prefer EDI instead of Extranets, the last ones are more userfriendly because of their Web interface, much more easy to implement, use and administrate and also much cheaper. Being a part of the company s Intranet, the only serious problem raised by an Extranet is the security one: this takes more than 80% of the time and money spent for it. The benefits of Extranets are: reduced time to market; reduced cost of doing business; faster access to partner s information; remotely access to its own information. 4. IMPROVING NETWORK INFRAS TRUCTURE Although current network solutions seem very stable, robust and reliable, there is a world wide race into improving the existing ones, and also developing new solutions. As a result of e-commerce requirements for better performance (faster connections, improved servers, bullet-proof security, higher storage capacity...), combined with intensive research, new elements into e-commerce infrastructure appeared: Data and transaction servers are computers that cannot go down, capable to manage complex, data-intensive transactions combined with extreme requirements into data and transactions integrity; Web-servers capable to handle highvolume transactions combined with an increased level of security; Edge servers: computers located outside a normal network that are meant to handle repetitive, high-volume tasks like caching and security functions; Network attached storage (NAS), a self-contained storage environment, attached directly to a LAN (Local Area Network); Storage area network (SAN), which is a high-speed, high-bandwidth network of storage devices, linked together to enable all systems to reach any data at any time; Standard based middleware is as communication layer all operating systems and applications within an organisation, enabling communications, integrations and transactions both within and across the value chain; Improved security measures. Another part into improving network infrastructures is the art of combining (connecting) new technologies with existing ones without damaging them or lowering their performances, and also the ability of choosing the perfect hardware solutions for every organisation or business in particular but that is why IT s pecialists exist. 5. A WIRELESS WORLD The next stage in e-commerce will involve the transformation of existing business models using wireless technology. This will enable the companies to coordinate decisions with inventory and transport requirements and match those decisions to market needs. It will also enable workers to gain access to needed information more easily and faster. But this is likely to disrupt existing power structures and decision-making processes within organisations. In the final stage, entirely new business models will emerge that would not have been possible without wireless. At present, adoption of mobile Internet technology makes more sense in some industries than others. Not surprisingly, it appears mostly in firms with mobile workforces. The early adopters are the same users that first adopted laptops in the early 90 s: sales forces in financial services, health care and pharmaceuticals, field workers for utilities... There are many directions for the wireless devices: from G3 (third generation) mobile phones, with WAP (Wireless Access Protocol), to handheld devices and to laptops. Surely most mobile workers already have laptops and mobile phones. But wireless handheld devices have a number of advantages. Laptops have complicated operating system software, plus a whole lot of additional software loaded on top. Also, booting in front of a potential customer may prove not to be good for business, leaving the impression that the user is not always in control. There is a problem with the mobile phones too: they are mostly for personal use, like searching a WAP portal for quotes, information and so on, and not for business, for receiving a large amount of The Romanian Review Precision Mechanics, Optics & Mecatronics 2005 (15), No

4 informat ion fro m the main server of a wireless - oriented company. Also, even if it is possible to send or receive e -mails, it is very hard to write and takes a lot of time, because of the screen and keyboard limitations (3-5 text lines and multiple-letter keys). That is why handheld computers are much simpler machines, with almost nothing to go wrong. As seen in the picture below, they usually have a small keyboard (touch-screen or a normal one) and an always-on wireless data connection, which allow users to send and receive on the move as though they were sitting in front of their desktop PCs. Also, they can complete all kinds of form (from work-related to shopping lists), access information from company s servers, but also from the Internet... Main benefits in using a wireless device are: Cost savings into transmitting data; Increased customer convenience; Increased productivity; Low implementation prices. 6. ELECTRONIC DATA INTERCHANGE EDI (Electronic Data Interchange) has an established history as a way of doing businesses between companies electronically, but it is expensive, closed, proprietary and available only to the largest of companies. EDI is the computer-to-computer exchange of structured data, sent in a form that allows for automatic processing with no manual intervention. This way, trade messages are simplified by the use of unambiguous, international identification numbers for all goods, services and locations, and agreed formats for the presentation of data. Electronic messages are usually sent via a value added network service (VANs) or the Internet that allows data to be sent or retrieved for processing at any time. The speed and certainty that EDI brings to the supply chain can enable companies to concentrate on their core trading activities and provide the ability to respond to customer's demands more accurately and confidently than ever before. If EDI communications are then integrated with accurate product identification, using global trade identification numbers (GTIN's) and data carriers, they can provide the foundation for a much more responsive and effective trading cycle. Whatever its position in the supply chain, any company can benefit from appropriate and timely information about the demand and supply of its products and services. Using international standards for product identification and EDI co mmun ications means intercorporate barriers are removed, offering significant improvements to the trading cycle. 7. XML THE NEXT GENERATION IN E- BUSINESS As e-business continues to develop, various technologies associated with computing evolve. Currently, the Java programming language and platform, the Extensible Markup Language (XML) and transcoding are emerging as major technologies for performing e-business functions, leading to future Web services. A Web service is an encapsulated package of data that is self-contained and modular, self-describing, using XML standards and dynamically accessible over networks using standardised mechanisms. XML is a major data-environment technology and an open standard. Its flexibility in data description satisfies the requirements of the Web application development for storing, exchanging, and managing the data. Therefore, XML is widely accepted for e- commerce infrastructure development. Part of a family of mark-up languages just like HTML (Hyper Text Mark-up Language) that is used to display texts on the web browser. However XML is significantly different to HTML as it was designed to describe complex data. If HTML is used to describe complex business documents it would soon become apparent that the limited number of pre-defined tags in HTML cannot describe the semantics, only presentation. XML does not have a pre-defined set of tags. In fact the user is free to define tags as she/he sees fit. What this means is that the user is able to define tags which can be used to describe semantics. The flexibility provided means that users are rapidly able to build XML documents (files) which describe business semantics. By making its general data available via XML-based Web services, a business can greatly extend its reach to customers. The network economy is driving the evolution of e-business from rigid to flexible application design, from static to dynamic interaction between partners, and from technology integration to business integration. The growth of XML standards from the transport layer all the way to the programming business application layer has greatly accelerated the development of e-commerce in general. Also, the growth of open standards creates new opportunities for designers and developers of applications and services, by writing XML e- commerce applications. 8. E-COMMERCE SOLUTIONS PROVIDERS In the revolutionary age of e-business, organisations of all sizes must find solutions to problems that do not come with clear-cut answers. To capitalise on new opportunities, every organisation needs broadbased expert assistance to plan, design, and manage 440 The Romanian Review Precision Mechanics, Optics & Mecatronics 2005 (15), No. 2 7

5 systems that will empower its business in the Internet Age. The key to success is speed-to-market. To win competitive marketplace advantages, you need to rapidly deploy new solutions. The largest communication network on the planet, the Internet, as well as the adoption of corporate Intranets has led to a number of significant business advancements. Those new Web-based applications simplify, automate, integrate and administrate the majority of tasks related to company s e-business in general. Also, companies must be able to leverage emerging Internet technologies to transform existing business processes such as resource management, product cycle time, customer service and sales to new e- business solutions. And so, fro m the needs of e-commerce based organisations, the business solutions companies emerged. They offer a complex package of services from market analysis to already built, complete Web-based e-commerce applicati ons. Fro m widearea solutions, built for general use, to particular ones, specially designed for each company. Those organisations mostly consist of IT employees (software and web-sites developers), but also of experts in the required economical fields, which use their experience to help analyse, create and implement e-commerce systems. Here are some examples of e-commerce specific services, provided by these types of organisations: Applications development based on the creation of new, specially designed, software packages; Customer Relationship Management includes comprehensive customer relationship solutions, integrated into that particular company systems and allowing automation of many operations for better efficiency; Enterprise Solutions and Applications Integration offers solutions for better market efficiency and also for combining different types of software application into a single, robust one; Strategy and Management Consulting combines strategic, technical, operational and organisational expertise with proven, disciplined approaches; Supply Chain Management combines software applications and Internet with all activities required to deliver products to the customer (designing products, receiving orders, producing materials, marketing, manufacturing, logistics, customer service, receiving payments, etc.); IT Infrastructure Solution includes all IT services available, from hardware implementation to network administration software R&D IN E-COMMERCE Like in any other domain, a very important piece of the future is research. Every year billions and billions of dollars are invested into development of new, faster and more reliable technologies that will empower companies to reduce their cost and shipping time of products, but also to increase the quality. There are two ways to improve the current way of doing business: by improving the technical side or the economical one. That is why not only economists, but also IT specialists are involved in this struggle. 10. REFERENCES 1. Sorin Zaharia, Viviana Filip, Claudia Mateoiu, e-mechanics, 5th International Conference on Information Technology Based Higher Education and Training: ITHET 04 31th May - 2nd June 2004, Istanbul, Turkey m/research/intranet/intranet_ sites The Romanian Review Precision Mechanics, Optics & Mecatronics 2005 (15), No