Flexible, Generic Tools

   

e-Commerce

e-Commerce is one of my pet topics. In 1997, with three colleagues, I founded the XML/EDI Group (http://www.xmledi.com). We believed that an open , extensible, standard format was required for business-to-business e-commerce.

I have debated this point at length in various forums (one of the most recent examples is at http://www.pineapplesoft.com/newsletter/20000601_ecommerce.html). Let me try to summarize it for you.

One of the fundamental laws of a capitalist economy is that the transparent market, one in which every player has access to all product and pricing information, is the ideal market. The transparent market will, over time, converge toward the best pricing for the best products with the best level of services.

That's the economic theory, at least. In practice, creating transparent markets is very difficult. The stock market and, possibly, eBay are the best approximations in existence. Yet, the theory is useful in guiding our actions. For example, anti-trust laws are derived directly from this theory.

When it comes to the Internet, you can read this law in many interesting ways, and XML is one of the most interesting readings . The Internet has proven such a fertile soil for the development of e-commerce and the so-called new economy because it is a good basis on which to build a relatively transparent market.

To achieve a transparent market, it is essential that every actor, no matter how big or small it is, no matter which operating system it uses, and no matter which accounting package it has installed, can participate.

In the consumer space, HTML fits the bill. HTML is a neutral format that enables buyers and sellers to meet and conduct business activities electronically .

However, because HTML is a formatting language, it is appropriate only for low volumes of transactions. As we saw in Chapter 5, to handle larger volumes (as required in business-to-business e-commerce), HTML is not appropriate. Instead we need a more structured format, such as XML.

I'm often asked, "Why XML? Why not [insert a format name here]?" One of the reasons is that XML is a standard. It is not only a formal standard maintained by the W3C but, more importantly, it is an industry standard. It is used and adopted by most e-commerce players.

The second reason is that it is an open standard. As discussed before, it is crucial that every business ”no matter how small or how exotic their operating systems ”can participate. If you are curious , I am running Windows, but it does not mean I don't want to do business with Linux, Mac, and Palm users.

Furthermore, the solution must be cheap. Expensive solutions are accessible only to large businesses. To reach a more transparent market, a cheap solution is necessary ”a solution that is affordable for large and small businesses.

Frankly, at the time of writing, we're not there yet. Chapter 7 is an e-commerce application, and, although it is not complex, it remains costly to build and costly to deploy.

However, I am confident that we will witness the same evolution as we have in the consumer arena. Until 1996 or 1997, if you had come to me and inquired about building an online shop, I would have fired up my programmer's editor and written one for you. Few businesses could afford it, though.

In 1997, I would have sold you a product. I don't remember the exact figures, but depending on the options, the cost was between $3,500 and $10,000. That was still expensive.

Today, most ISPs offer shopping carts for $50 “$200 per month. In addition, HTML editors, such as NetObjects, enable you to edit and manage your shop from your desktop.

At the time of writing, XML is similar to what HTML was like in 1996. It requires a lot of custom programming, but the first generation of products (the expensive ones) is appearing on the market.

I would be surprised if prices don't go down. In a couple of years , most ISPs will offer an XML-based e-commerce module as part of their standard package. At that point, we'll have a more transparent market.

I hope this book succeeded in teaching you how to write applications for this new market.

   


Applied XML Solutions
Applied XML Solutions
ISBN: 0672320541
EAN: 2147483647
Year: 1999
Pages: 142

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