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Designing Systems for Internet Commerce, 2nd Edition

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Designing Systems for Internet Commerce, 2nd Edition


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  • New material on integrating enterprise applications.
  • More in-depth coverage of reliable and scalable systems.
  • Describes Internet system architectures which best delivers value to customers.


  • Copyright 2003
  • Dimensions: 7-1/4" x 9-1/4"
  • Pages: 496
  • Edition: 2nd
  • Book
  • ISBN-10: 0-201-76035-5
  • ISBN-13: 978-0-201-76035-4

This new edition reflects experience gained with Internet commerce systems over the last four years. It explains the new technologies that have emerged, including the wide-spread use of XML, the growing use of web services, evolution in content management systems, the importance of integration with other enterprise information systems, and the growth of mobile and wireless systems. The core focus is on how to use the technology to deliver value to customers, and the essential role of system architecture in achieving that goal.

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Functional Architecture for Internet Commerce Systems

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Table of Contents


1. Introduction.

Why the Internet and Why Now?

Strategic Issues.

What Do We Mean by Internet Commerce?

Business Issues in Internet Commerce.

Technology Issues in Internet Commerce.

Who Owns Internet Commerce in an Organization?

Structure of the Book.

Part One The Business of Internet Commerce

2. The Commerce Value Chain.

Introducing the Commerce Value Chain.

Components of the Commerce Value Chain.

Who Is the Customer?

Marketing on the Internet.

Doing Business Internationally.

The Legal Environment.


3. Internet Business Strategy.

Commerce and Technology Revolutions.

A Historical Analogy.

The Internet Value Proposition.

Four Strategies.

New Competitive Threats.

New Competitive Opportunities.

Disintermediation and Reintermediation.


4. Business Models-Some Case Studies.

Introduction to Business Segments.

Consumer Retail.

Business-to-Business Models.

Information Commerce.


5. Conflicting Goals and Requirements.

Goals of the Participants.

The Role of Standards.

Privacy Versus Merchandising.


6. Functional Architecture.

What Is Architecture?

Core Architectural Ideas.



Examples of System Architecture.


7. Implementation Strategies.

Organizing for Internet Commerce.

Planning the Implementation.


Custom Development.

Packaged Applications.

Working with System Integrators.

The Roles of Internet Service Providers.

Project Management.

Staying Up-to-Date.

The Role of Standards.

24/7 Operation.

Security Design.

Multiorganization Operation.


Part Two The Technology of Internet Commerce.

8. The Internet and the World Wide Web.

The Technology of the Internet.

Development of the Internet.

Design Principles of the Internet.

Core Network Protocols.

The World Wide Web.




Consumer Devices and Network Computers.

The Future of the Internet: Protocol Evolution.


9. Building Blocks for Internet Commerce.

Components in an Internet Commerce System.

Content Transport.

Media and Application Integration.

Server Components.

Programming Clients.

Sessions and Cookies.

Object Technology

Application Servers.

Commerce Client Technology.

Delivering Digital Goods.


10. System Design.

The Problem of Design.

A Philosophy of Design.

An Architectural Approach.


Design Principles Versus Technology Fads.


11. XML and Web Services.

What Is XML?

Basic XML Standards and Technologies.

XML for Data Exchange

XML for Communications-Web Services.

XML for Applications.


12. Creating and Managing Content.

What the Customers See.

Basic Content.

Tools for Creating Content.

Managing Content.

Multimedia Presentation.


Integration with Other Media.


13. Cryptography.

Keeping Secrets.

Types of Cryptography.

How to Evaluate Cryptography.

Operational Choices.

One-Time Pads.

Secret-Key (Symmetric) Cryptography.

Public-Key (Asymmetric) Cryptography.



Key Management.

Certificates and Certificate Authorities.


14. Security.

Concerns About Security.

Why We Worry About Security for Internet Commerce

Thinking About Security.

Security Design.

Analyzing Risk.

Basic Computer Security.

Basic Internet Security.

Client Security Issues.

Server Security Issues.

Achieving Application Security.


Authentication on the Web.

Web Sessions.


15. Payment Systems.

The Role of Payment.

A Word About Money.

Real-World Payment Systems.

Smart Cards.

Online Credit Card Payment.

Electronic Cash.


Peer-to-Peer Payment Systems.

Payment in the Abstract.


16. Shopping Carts and Order Management.


Shopping Carts.

Managing Shopping Carts.

Purchase Order Information Flow.

Shopping Cart Presentation.

Abandoned Shopping Cart.


17. Transaction Processing.

Transactions and Internet Commerce.

Overview of Transaction Processing.

Transaction Processing in Internet Commerce.

Client Software.

Implementing Transaction Processing Systems.

Keeping Business Records.



18. Integration with Enterprise Applications.

The Details Behind the Scenes.

Enterprise Systems Architecture.

Integration Pitfalls.


Enterprise Resource Planning Systems.


Logistics, Shipping, and Handling.

Inventory Management.

Example: SAP Integration.


19. Reliable and Scalable Systems.


Enterprise-Class Concepts.



High-Availability Systems.

Building Highly Available Systems.

Replication and Scaling.

Backup and Disaster Recovery.


20. Mobile and Wireless Systems.

Overview of Mobile and Wireless Technologies.

A Range of Devices.

Wireless LAN Technology.

Security and the Wireless LAN.

The Mobile User Experience.



Part Three Systems for Internet Commerce.

21. Putting It All Together.

Building Complete Systems.

Federated Commerce System.

System Functionality.

System Architecture.

Transaction Engine.

System Functionality.

Case Study: Business-to-Business System.

Case Study: Business-to-Consumer System.

Case Study: Information Commerce.


22. The Future of Internet Commerce.



Staying Up-to-Date.

Strategic Imperatives.

Resources and Further Reading.

Index. 0201760355T04282003



In 1994, The Economist ranked the Internet between the telephone and the printing press in its long-term impact on the world. Just as those inventions transformed society, so the Internet has already begun a transformation--one that is happening much faster than the earlier revolutions. Commerce, of course, is one arena already feeling the effects of the Internet. In the past few years, we have seen dramatic changes in some businesses, the creation of new businesses, and significant effects on others.

In the nineteenth century, fast transportation--the railroad--fundamentally changed commerce. At the end of the twentieth century, the Internet is making fundamental changes to commerce for the next century. We are just at the beginning of the revolution. It is a revolution made possible by technology, offering a tremendous variety of new business opportunities. The technology will continue to change, and change at a rapid pace. New markets will appear and old ones will be transformed or disappear entirely. The short-term changes in technology and markets are important, but the reaction to them must be balanced with a long-term business vision. The challenge is using the technology effectively to achieve business goals.

The audience for this book is what we call the "Internet commerce team." This team includes people responsible for business and those responsible for technology. It includes those who develop the strategic vision for a company and those who put the strategy into action. In other words, the Internet commerce team is the group of people who work to make Internet commerce happen, from vision to implementation.

Our focus is on making Internet commerce happen and making it successful over the long term. In some ways, Internet commerce seems deceptively simple: companies think, "Let's put up a Web site and watch the money roll in." A year later they're wondering what happened and why it wasn't successful. As anyone involved in running a business knows, nothing is ever that easy. The basic rules of business haven't changed, but the Internet does change the playing field. It offers new markets, new ways to get close to customers, and new ways to work with partners.

For some, the excitement over Internet commerce has created a "credibility gap" between grand visions of change and the day-to-day problems of running computer systems for a business. It is easy to paint an exciting vision of the future, yet often difficult to figure out how to get there. This book aims to help bridge this gap, grounding the vision of change with what is possible for businesses to achieve with the changing technology.

Throughout the book, we emphasize both practice and principles--the what and the why. Practices are the actions--the specific ideas for specific circumstances. Principles are the general rules--the elements on which practices are built. As technology changes (or, for that matter, as business models change), the practices will need to change. The principles, in contrast, change more slowly and can be applied in a wide variety of circumstances. When a team understands the principles underlying what they do, they can adapt to changing circumstances and develop new practices for it. Without that understanding, they can become incapacitated when the situation changes and different practices are needed to be successful.

What the technology brings is a combination of new opportunities, changing cost structures, new customers, and faster response times. The technology opportunities must be combined with and tempered by the business goals. This book is about that combination--designing computer systems for doing business on open networks.

When we say this book is about design, we mean that it is intended to help with the design process. It doesn't give all the answers; the actual design for your business requirements is likely to be very different from someone else's. Nonetheless, we can explore some of the common issues and critical questions to ask when planning any system for Internet commerce. In the process, we look at some of the key technologies of today and apply those technologies in several examples.

A word of warning: at times it may seem that we are overly concerned with potential problems--the things that can go wrong. These are not reasons to avoid Internet commerce. Rather, we think it is important to approach Internet commerce as you would any other business proposition, understanding the downside as well as the upside, the risks as well as the benefits. On balance, using the Internet for commerce can be a tremendous asset for businesses. Doing everything possible to maximize the chances for success is merely good business.

We have created a Web site for this book at http://www.treese.org/Commerce/.

Win Treese
Newton, MA

Larry Stewart
Burlington, MA



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