Task 8: What is the value of XML in e-commerce? Give examples of its usage.

E-commerce Applications using XML

As e-commerce and network Technology continues to evolve, online payment to become an essential in the Development process platform. In this trading platform, and always have a great deal of data in mobile, how to use a new technology to manage these important data. This paper is the use of XML technology to achieve the data flow of the parties to the transaction more concerned about the problems - the safe and efficient flow of data.
  
Introduction

E-commerce is a combination of IT technology and business operation generated a new type of business transaction process is the use of advanced electronic technology to conduct business activities in general, it is through the network, the use of advanced Information processing tools to buyers and sellers of business information, product information, sales information, service information and e-payment and other business activities, with mutual recognition of trading standards to achieve.

XML is jointly organized by the Internet (W3C) to facilitate software developers to organize information on the web created a set of specifications, which aims not only to meet the growing demand for network applications, but also in order to ensure co-operation through the network to interact with good reliability and interoperability.
   

With the expansion of the scale of e-commerce transactions, the transaction data generated is increasing dramatically on these data; different subjects will be stored in different ways and management.

When these subjects use the Internet with the bank payment and settlement system, they will generate data on how to convert the problem, if the data in its original form on-line flow, not only reduces the data transmission speed, security is also very difficult to guarantee. The e-commerce system based on XML technology can solve the above problems, so you can guarantee that the data on the network of safe and efficient movement.
     

E-Commerce

E-commerce is simply about two or more parties exchanging information electronically for money. The primary objective of any kind of E-commerce activity is just business. E-Commerce is all about business, where you use Electronic data exchange to perform a business activity or transaction. Primarily only big businesses and banks have been involved in electronic transactions.

For example, the need to support credit card merchant services was primarily supported by ATM machines, which included exchange of information of account details between customers, offices and business organizations. As time went by, Internet gained popularity. This resulted in new business models, which was within the reach of small and medium sized organizations. People found a number of uses for electronic data exchange when it came within easy reach.

XML in Business

The traditional method of communication for large companies, who pioneered information exchange, is a solution known as EDI ( Electronic Data Interchange). However these systems were very expensive.

The Advent of Internet and XML changed the usage of costly systems like EDI for Electronic information exchange. The trend towards XML is expected to expand and diversify as more applications of available technologies are employed to gain advantage in the age of electronic information.

In addition to e-commerce, one of the major emerging trends is to share an increasing amount and variety of other enterprise and organizational information, an area that is currently being defined and implemented alongside the new e-commerce applications. This is termed as eBusiness.

There are basically three models for E-Commerce namely :-

·         Selling direct to customers, which is widely called B2C (Business to Customer) where the business directly interacts with the ultimate clienteles

·         Business to Business transactions or B2B, where businesses directly transact with other business organizations

·         Information sharing and content syndication, which involves making information, which would be useful in business transaction to be made available

Traditionally, people used to go to the place of business for business transaction. Now with the advent of Internet this trend has changed to such an extent that the customer can easily shop in the comfort of his residence or from anywhere in the world. This eliminates middlemen in the business thereby making the products cheaper to the consumers and making it more profitable for the business organizations.

 Customer                                                                     Retailer

 Browser                                                                         Website

             

 Customer                                                                     Manufacture

 Browser                                                                         Inventory

B2C is the most common E-Commerce model. This is the one that many people think of first when we talk about e-commerce. Typical examples are sites like Amazon.com and Fabmart.com.

In this model, we can directly go to the web site of the business organization using a standard web browser. The web site would display all the products of the business organization and we can even buy these products using our credit cards over the internet, which could be later delivered to our doors.

The B2C model has not only helped big businesses, it has also offered a lifeline to many small companies that make or sell specialist products to a small potential market. These small companies use the internet as direct sales channel. B2C is a process of traditional manufacturers hawking their wares directly to potential consumers online, bypassing the middleman. This eventually boosts up the profits of such organizations.

Business to Business

Initially, organizations used to communicate through middlemen for placing orders for trading purposes. This increased not only the costs but also the delivery time. The Internet has now helped the organizations working together in business for faster delivery and quick placing of orders thereby eliminating middlemen and thus, reducing time.

Customer                           Retailer                              Distributor

Browser or                          Website                               System

System

In my conclusion XML can offer tremendous potential for businesses, developers, and consumers involved in E-Commerce. However, as with any business application, XML does not by itself offer prescription for a successful E-Commerce venture. It is only a standard foundation on which solutions can be built. The basis of these solutions will only be realized when, along with leveraging XML technology in its different forms, the challenges currently being faced are taken into consideration.

Reference:

G.v.Huizen(2004)Using XML for JMS Messaging in E-Commence http://www2.syscon.com/itsg/virtualcd/Java/archives/0505/huizen/index.html [Online] Viewed at: [Accessed 26/12/2010]