e-Commerce in Regional Australia Update 2001 19 June, 2001

E-Commerce Enabling Technologies

Wayne Pease
Lecturer
Division of Information Systems
Faculty of Business & Commerce
Wide Bay Campus
University of Southern Queensland

Introduction

Electronic commerce allows businesses and consumers to purchase goods and services, and
exchange information on business transactions online. The growth of the Internet as a viable
business vehicle for conducting these transactions is one of the phenomena of modern
information technology and has already had a significant impact on the business community,
providing new methods of conducting business on a global basis (Jutla, Bodorik, Hajnal &
Davis 1999).

Several technologies must be in place for electronic commerce to exist. The most obvious
one is the Internet, which is revolutionising the way commerce is performed. Beyond that
system of interconnected networks, many other sophisticated software and hardware
components are needed to provide the support structure: operating systems, distributed
computing environments, middleware, user-interface technologies, server-side facilities and
services, languages, software development methodologies, and of course the World Wide
Web.

In general, requirements imposed on these basic technologies are numerous and result from
the unique nature of electronic commerce, which is characterised by distributed, autonomous,
and heterogeneous information sources, vast amounts of hypermedia data, a wide range of
users’ specialities and abilities, and the need to support a range of business transactions
(Adam & Yesha 1998).

The rate of change is rapid for all elements that support electronic commerce. They evolve
and change daily. The purpose of this paper is to briefly examine these various technologies
and their inter-relationship, examine a conceptual model of e-commerce architecture and
identify major technology research areas that will affect the growth or nongrowth of
electronic commerce in the immediate future. Major research areas of interest are wireless
technology, and autonomous agents.

Overview of Internet Technologies

In its simplest form the Internet exists to facilitate the reading of ordinary documents that are
physically located on other people’s computers. With the emergence of electronic commerce,
the Internet has evolved into an infrastructure capable of supporting major commerce enabled
applications. To understand this transition it is necessary to review the basic mechanics of
the Internet and its major application, the World Wide Web (WWW).

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Static Web Content

The set of protocols that underlie the basic operation of the Internet are the Transmission
Control Protocol (TCP) and the Internet Protocol (IP). The common acronym TCP/IP refers
to the two protocols. The Hypertext Transfer Protocol (HTTP) is the Internet protocol
responsible for transferring and displaying Web pages. HTTP runs in the application layer of
the TCP/IP model and employs a client/server architecture in which the user’s web browser
(the client) opens an HTTP session and sends a request for a web page to a web server (see
figure 1). The format of the web page is controlled by the Hypertext Markup Language
(HTML), a document production language that includes a set of tags that define the
appearance and style of a document. This combination of technologies provides the
fundamental mechanism for the retrieval and display of information on the Web (Schneider
& Perry 2000).

Scripts/
Web Server Programs

Web
Browser
requests a Internet
web page TCP/IP Web Server
trans fers a
web page

Web Browser

Figure 1: Static Web Content

Dynamic Web Content

The preceding description is concerned with static content, which is permanently stored on a
web server. Static content does not have the ability to personalise the end-user’s web
experience. This experience is provided by server side applications which produce
dynamically generated web content.

The primary technology that enabled the development of dynamic pages was the creation of
HTML forms. These forms facilitate user input through a simple graphical user interface that
web browsers render and process, based on specifications contained in the web pages. Forms
themselves are not dynamic, but their ability to call and pass parameters to automated scripts
or programs on the server make them an integral part of the solution for providing dynamic
web pages (Micro Modelling Associates 1999). Typical web application architecture with
dynamic content is shown in figure 2.

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Web Server Program

Database

Web
Browser
requests a Internet
web page TCP/IP Web Server
trans fers a
web page

Web Browser

Figure 2: Web application architecture with dynamic content

The significant limitation with HTML is that it determines how a page will be displayed
without specifying content and structure. The Extensible Markup Language (XML)
represents an industry-wide effort to define which data are displayed on a web page (Roy &
Ramanujan 2000). A non-proprietary specification, XML is a project of the World Wide
Web Consortium (W3C). XML adds context and gives meaning to data and allows the
creation of customised tags, called elements, for describing the documents structure. This
facilitates the electronic transfer of structured business data from point to point (business to
business), independent of the programming platform. It is possible using XML to integrate
knowledge management systems into a myriad of e-business solutions (Usidin & Graham
1998; Ritter 1999; Shim, Pendyala, Sundaram & Gao 2000; Tiwana & Ramesh 2001).

Web Client/Server Architecture

The division of labour between web clients and web servers is quite distinct and is an
example of a client/server architecture. This type of architecture allows the distribution of
computing tasks between two or more computing resources. Essentially the client requests a
service that is provided by the server. These clients can be browsers running on personal
computers, network devices, personal digital assistants, cell phones, and other pervasive
computing devices. The static web content system (see figure 1) is a basic two-tier system
with all communications (using HTTP) occurring between the client and the web server.

In the case of dynamic web content (see figure 2), a three-tiered client/server architecture is
used (see figure 3), consisting of a thin client layer (often, but not always a web browser), an
application server layer and a data layer which holds the databases and data stores for the
application. Interactions between the client and the server operate the same way as they do in
a two-tier system. The third tier provides comprehensive data services, including database
operations, enterprise resource planning software services, and any other services needed to
support a robust electronic commerce server (Schneider & Perry 2000). This type of
architecture holds many advantages over simple client/server architecture, including the easy
deployment and maintenance of the thin client layer and the inherent scalability of the middle
and data layers.

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The application servers in the mid-tier are responsible for:

• Process management
Running different application modules in different processes, passing data between
them and distributing them across physical processors and machines. Good process
management is key to a high performance, high throughput application.
• Access and security
Authenticating users (or connecting processes) and customising the interface to
application services according to the user's profile.
• Transaction management
Grouping data updates in transactions and ensuring that they are properly committed
to the data layer.
• Session management
Web browsers and servers are essentially stateless, but if for example you want the
user’s shopping trolley to keep filling up as they select items to buy, then the state of
the user session has to be maintained between mouse clicks in the browser.
• Application Logic
The processing and logic that makes up the core of the application is executed in the
mid-tier, isolated from the thin client and the data access layers.

Backend Layer Mid-tier Layer Web Server Layer

E-Commerce
servers

Mainframe Load- Internet

balancing
DNS

Router

ERP
System

Analysis and
decision support
interface

Catalog Database

Figure 3: Three-tiered architecture.

Reproduced with permission from Techknowledge Australia © 2000

The three-tiered model is being replaced with a multi-tiered model, where the third tier is
modified to consist of an integration server and any number of specific back-end applications
(see figure 4). This change results in a business web site with improved scalability and

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robustness. The impetus behind multi-tiered architectures is the same one that popularised
client-server development in the first place: the need to put specialized processing and
applications within an appropriate computing and network environment. The major
disadvantage associated with this type of system is the higher level of complexity, which
requires a well-disciplined development and testing environment for effective
implementation.

A multi-tiered, as opposed to a three-tiered architecture, splits the application layer into any
number of separate tiers, which may be just a logical separation or may reflect a physical
separation between processors or machines. Multi-tiered architectures are important for web-
based applications generally, but even more so for applications involving XML. In XML
applications, the XML processing can take place in the application server layers, rather than
in the desktop browser.
Mechanism
Security

Web App
Server Server Other
Data

Integration Server

Backend Apps

Figure 4: Multi-tiered architecture.

Reproduced with permission from Techknowledge Australia © 2000

Conceptual Model of Electronic Commerce Technology Architecture

Electronic commerce architectures use web technologies to implement mission-critical e-

business applications. These architectures use small-footprint clients to access services
provided by resource managers that can be accessed across a strong and reliable network.
The e-business architecture is more than just a collection of technologies and products. It
consists of several architectural models and will adapt to changing business and technology
requirements.

Koushik and Joodi (2000) identify the following key elements that influence e-business
architecture:
• The organisation’s overall business strategies;

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• A range of business drivers;

• IT environment;
• IT vision, objectives and strategies;
• Organisational constraints; and
• New and emerging technologies.

The process of developing an effective strategy for implementing an operational system

requires a clear understanding of both the systems requirements and constraints, and must be
based on a conceptual model that provides a layout of the basic architectural components that
deliver the services required to support e-business applications. The EC Technology
Architecture, a five layered application model, developed by Techknowledge Australia
provides such a basis (see figure 5).

Relationship Layer
USER INTERFACE
4
COMPONENT TOOLKIT
EC Application Layer
APPLICATION - SPECIFIC LOGIC
3
COMPONENT TOOLKIT
Middleware Layer
APPLICATION
2 MIDDLEWARE SERVER

Internal Applications Layer

ERP LEGACY
1

Foundation Layer
OPERATING
NETWORK DATABASE SYSTEMS
0

Figure 5: EC Technology Architecture™

Reproduced with permission from Techknowledge Australia © 2000

Layer 0 – Foundation Layer

This forms the basic platform on which the e-business operational system is built. The
foundation layer includes all of the infrastructure hardware and its associated hardware
management equipment. Infrastructure hardware consists of, at least, the payments systems
hardware (eg credit card reader), security hardware (eg proxy servers) and networking
hardware (eg routers).

A range of software is also associated with this layer including the infrastructure software for
the payment system and security system, operating systems software and any associated
database management software.

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Layer 1 – Internal Applications Layer

Provides an access interface to the various applications systems (eg data warehousing system,
legacy systems requiring data translation) required to provide functionality to the e-business
system. These interfaces often play the role of proxy for individual transactions within back-
end legacy systems and shield other components from the proprietary technologies used by
these systems.

Included in this level is the enterprise resource planing (ERP) applications used to provide
management of the operational business processes (eg product planning, purchasing,
inventory management).

Layer 2 – Middleware Layer

Middleware is a framework for building (typically distributed) application systems.

Middleware frameworks provide common services, such as network communication
primitives (eg RPC and distributed objects) naming and locating services and security
support. Middleware is meant to abstract away the underlying environment from applications
and present a homogeneous interface to application programmers and users (Milojicic 1999).
Examples of middleware frameworks include OSF DCE, Microsoft DCOM, Java RMI, and
OMG CORBA.

Layer 3 – EC Application Layer

Based at this level is the online e-business application. Software is required for two distinct
purposes, the commerce server and the web server. The web server provides online access to
the commerce server. The commerce server will require a range of software to implement
and manage the actual storefront.

Layer 4 – Relationship Layer

The presentation mechanism such as a browser based front end to accept and process user
input data. This layer interacts with visual components to handle presentation related tasks
and with non-visual components to handle the interface with back-end applications.

Future Trends in Electronic Commerce Technology

Electronic commerce applications are by definition dynamic and must be prepared to react
and incorporate (if appropriate) new and emerging technologies. Mobile electronic
commerce and the use of agent software are two such technologies.

Mobile Electronic Commerce

According to the Gartner Group, by 2004 at least 40% of business-to-consumer electronic

commerce will come from smart phones using the wireless application protocol (WAP)
(Haskin 1999). WAP focuses on applications tailored to the capabilities of cell phones and
the needs of the user. WAP uses the Wireless Markup Language (WML) to display text and
icons on the telephones screen (Goodman 2000). WAP thus creates an information web for
cellular phones, distinct from the PC-centric web. WAP functions well in the low-data-rate
low-power environment of the present cellular systems.

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The major obstacle for the future development of WAP is its operating environment, which is
under the full commercial control of the various cellular operating companies, and as such
application development is limited. Varshney, Vetter and Kalakota (2000) identified four
groups of potential mobile applications:
• Mobile inventory management that tracks the location of goods, services and
possibly even people;
• Product location which allows consumers to find an item with certain specifications
in a particular area;
• Proactive service management which collects information on user needs then signal
vendors to provide services; and
• Mobile auctions, entertainment and other services.

Mobile computing is now seeing the development of mobile devices with sufficient memory,
an appropriate display and communication functionalities. Several devices are now available
including the PalmPilot, a personal digital assistant (PDA) with a wireless modem and the
Nokia Communicator, a mobile phone with computing functions.

Electronic commerce applications make use of mobile middleware as an enabling layer of

software (see figure 6) to connect with different mobile networks and operating systems
without introducing mobility awareness (Varshney, Vetter & Kalakota 2000). ExpressQ from
Nettech (www.nettechRf.com) is a mobile messaging middleware product.

Applications

Middleware Mobile Middleware

Wired Wireless Network

Network

Figure 6: Mobile middleware for application and content adaption

Recent evidence from both Japan and Scandinavia would indicate that the general public are
taking advantage of digitally networked portable devices (Feldman 2000).

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Agents

Griss and Pour (2001) describe an agent as “a proactive software component that interacts
with its environment and other agents as a surrogate for its user, and reacts to significant
changes in the environment”. A software component (program) is considered to be an agent
if it exhibits a combination or several of the following characteristics: autonomous, adaptable,
knowledgeable, mobile, collaborative and persistent.

Examples of agents currently in use include:

• shopbots and pricebots, which monitor product availability and price, then negotiate
and complete sales of goods and stocks to optimise business-to-business and business-
to-consumer interactions (Huhns 2000);
• personal agents which interact directly with a user, presenting some personality or
character, monitoring and adapting to the users ‘s activities (eg Microsoft Office
Assistant) (Griss & Pour 2001); and
• mobile agents sent to visit remote sites and collect information (eg network
management agents, Internet spiders) (Griss & Pour 2001).

Agents are typically designed using increasingly pervasive message-based middleware and
component technologies, Java, XML and HTTP to create agent-based enterprise software
systems. A simple agent-environment interaction model (Vidal, Buhler & Huhns 2001) is
shown in figure 7.

Agent Sensors

What the world

is like now
Environment

Condition-action What action

rules should I do now

Effectors

Figure 7: Simple agent-environment interaction

The Internet is moving toward an open, friction-free marketplace in which software agents
will manage the buying and selling of goods. In the near term, agents’ major role will occur
in the general economy of goods and services where they will link the supplier and consumer
and contribute by reducing communication and interaction costs (Huhns 2000).

Conclusion

The global economy, through Internet-based commerce, continues to transform industry and
commerce; the “cyber rush” persists. Technological innovation and the global expansion of
commerce are the forces combining to contribute to the further growth of electronic
commerce. The Internet and its technologies increasingly influence the way industries work

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and how businesses and customers interact. Building the infrastructure to do business on the
Web will ultimately give way to a more mature, methodical approach to exploiting this new
sales, marketing and customer-service channel while continuing to nurture and develop
existing ones.

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