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Enabling Mechanisms The main enabler that has made teletrade possible is the wide spectrum of available information and communications technologies. This page is concerned with the technologies and other enabling mechanisms. Today's technologies include the Internet (and its various tools such as electronic mail and the World Wide Web), EDI (Electronic Data Interchange). Other important mechanisms are ways of handling authenticated and secure transactions, online payments, and developing appropriate strategies and online skills. We would like to thank the Federation of the Electronics Industries for their contribution to the Further Information sections. This page also highlights some emerging technologies and pilot projects being carried out as part of the ACTS (Advanced Communications and Teelecommunications Services) Programme. The Internet The World Wide Web (WWW) Electronic Data Interchange (EDI) Authenticated and Secure Transactions Online Payments Emerging Technologies and Pilot Projects The Internet The Internet is a network of networks that provides an important foundation for teletrade. It is essentially a set of protocols that allow communications over links provided by telecommunications operators. While teletrade takes place over other 'closed' networks, the Internet has been growing rapdily in popularity for teletrade because of these advantages: It is 'open' - any computer using the Internet protocol standards can join the network It is accessible - over 30 million people can access the Internet through their corporate gateways or via Internet Service Providers (ISPs) Routing is adaptive - if some comuters on the route from sender to receiver go down, the Internet will find a way of delivering It has a wide and growing range of software tools, including electronic mail and the World Wide Web It is low cost - from a standard PC, the basic cost of using the Internet is a one off cost of a modem (200ECU) and software (this varies but most packages cost under 100ECU and much is free), an ongoing fees to a service provider (10-30ECU a month), the cost of telephone connection time used. In a nutshell it provides cost-effective communications with connected companies and individuals around the world. It also enables effective information dissemination, and with the appropriate software can handle commercial transactions. Concerns about the Internet are: Its capacity to grow to accommodate increasing volume, caused by both growth in user numbers and in the sizes of data they transmit (e.g. caused by multi-media applications) Security - being an 'open' network, this means that there may be less safeguards than on a closed network Reliable access - there are frequent complaints of engaged lines, poor service provision and unreliable connections Universal access - are we creating a society of the haves (who have access, perhaps from their home computer) and have nots (which could be that they are 'beyond the end of the wires or cable' for reliable or high bandwidth connection, or simply cannot afford the PC and services)? The level of skill needed. Its ease of use for the avarage person had not yet reached that of a domestic appliance. These are issues and concerns that will be monitored by the ETD initiative, who are currently producing a status report for each EU country. Further Information Basics of the Internet - A management oriented overview in some detail (43K) from Management Technology Associates. It describes its origins, applications, benefits and issues. An associated page gives an overview of the various tools - email, the Web etc. Guide to Internet Resources - A useful guide to the different Internet tools provided by the semi-offical body EARN. It includes basic descriptions on what they are, how they work: The World Wide Web (WWW) - what you are using now! USENET (NETNEWS) - newsgroups (discussion lists), which you access via a newsreader. But you will need to look at a list to find out what newsgroups there are. List Server - email distribution list mechanism. Unlike newsgroups postings are emailed to you automatically. Internet for Beginners - This contribution from UKINDEX has brief introductions to the World Wide Web, email, collecting files, tools and facilities, jargon, and good manners. World Wide Web (WWW) If you are reading this on a computer screen, the World Wide Web needs little introduction. It hosts over 40 million 'pages' of information held at Web servers around the world. Its obvious benefits are its simple point and click hypertext links where you can navigate around information space without knowing where the computer holding the information is located. For teletrade, there are many effective uses of the Web: It can hold product and service information e.g. in an electronic catalogue Applications and support information can be 'on tap', for example offering user search facilities Classified directories or resources sites can help buyer meet seller - effectively creating electronic trading places Forms can be used to register prospective customer details (helping relationship marketing) and for taking orders The Web can act as a front end to existing transaction and database systems on other computers (in this project we are recording your information from the registration form into a database; we are also developing a database of telework and teletrade resources that can be accessed via a search form front end) What is often not realised is that the Web can act as a repository for any computer file, which readers can download and run in their own machine. This Web site has Word documents (see for example Telework 96 - Note: 569K) and presentations. Innovative uses of the Web are appearing all the time. Companies can offer samples of their 'information' based products, such as music, or distribute video and sound clips. To develop a Web site you need three things - 1) A Web server (often provided by a service provider); 2) A way of generating Web pages (they are written in a code called HTML - Hypertext Mark Up Language), such as an editor and 3) The skills to design an effective Web presence. A growing number of service providers can offer all these facilities. Further Information Basic Introductions to the World Wide Web can be found at the EARN site, UKINDEX. WWW - Frequently Asked Questions - with answers! One of several such sites listing common questions from newcomers, such as "What is the Web?", "How does it work?" etc. Another one is from the University of Geneva. Principles of Good Web Design - developed by the Information Design Unit. They describe an approach to creating an effective presence on the Web. Publishing on the Web - Webcom's comprehensive guide for doing it from first principles. Contains lots of helpful information - using the Web, writing HTML (the code for generating Web pages), publishing and publicising. EDI (Electronic Data Interchange) EDI (Electronic Data interchange" focuses on the more formal aspects of transactions between companies once they have decided to do business with each other. It is essentially computer-computer communication without human intervention. For this to work effectively each computer has to work to common standards, for the nature of the records being transferred and the actions required to be taken (e.g. pay an invoice). Such standards are EDIFACT, ODETTE etc. EDI has been an important feature of high volume transactions between established suppliers and their customers. Each two-way relationship incurs certain setting up costs. Special software, often costing thousands of ECUs, is also need. To date, it has not been suited to ad-hoc transactions, though many providers of EDI are now looking at how EDI functions (that provide authentification, security etc.) can be bolted onto the Internet. In terms of teletrade it represents one small part of the overall range of mechanisms. It is often said that there are nearly 30 informal communications between buyer and seller for every structured formal transaction that takes place. Further Information EDI Standards - A page provided by the Open Information Interchange initiative. List standards such as EDIFACT and those used in healthcare, travel etc. Provides links. Understanding EDI - A good introduction including What is EDI?, EDI standards and a glossary of EDI. EDI Initiatives in Europe - A paragraph giving an outline of what is planned. Currently lacks contact details. Also interesting is the following paragraph on EDIforum Italia (which does give contact details!). EDITIE (UN EDIFACT) - About one of the main EDI standards Payment Mechanisms Making payments over the Internet should be no more difficult than for any other 'distant' transaction, such as ordering by phone. However, the Internet's global reach and concerns about security make many people feel you cannot place orders or make payments. The reality is somewhat different: Every day people buy goods and services over the Internet - orders are placed via Web forms or email. Payment may be done through conventional means e.g. via invoicing Sending a credit card number over the Internet is probably no less risky than giving it out over the telephone or losing sight of it in a conventional outlet, such as a restaurant (it is probably even more secure in transmission, when using encrypted messsages, such as may be offered on a secure commercial server and using the appropriate Web browser) However, the ease with which other aspects of teletrade can take place, means that ideally people would like to make payment as effortlessly as sending an email, and without incurring hefty bank charges, for funds transfer of foreign currency conversion. Ideas are on the drawing board for enhancements to the HTTP protocol (used for sending Web pages) that could make the cost of payment transactions fractions of an ECU. Current methods essentially fall into three categories - secure transfer of data (e.g. for bank, credit card details), validated data using 'keys' held by a trusted third party (e.g. a virtual bank), and direct Digital funds transfer (including electronic cash and electronic wallets). This field is changing rapidly so we suggest you review some of the other sources of information on the subject. Further Information on Payment Mechanisms Network Payment Mechanisms and Digital Cash - a useful and well presented set of pointers and pages by Michael Peirce, at the Trinity College Dublin site Electonic Payment Methods - By the Open Information Interchange Initiative. Gives short descriptions of each methods including secure protocols such as SET (Secure Electronic Transaction) and MPTP (Micro Payment Transfer Protocol) Two European companies active in the electronic payments field are DigiCash (E-Cash) and Mondex. Internet Banking White Paper (30k) by Webtech, Inc. suggesting reasons why retail banks need to worry about and respond to the potential of "Internet Banking". Authentification and Security At one level, security over open networks is no different from that on your own computer. It is a case of understanding (and quanitifying) the issues, having a plan to address them, implementing appropriate technical solutions, but above all (and the cause of most security problems) having good business and management practices (such as changing passwords frequently). For teletrade the main issues are authentification of the transaction (did this high value order or instruction really come from who it appears to?), concerns about misrouting or interception (e.g. diverting electronic funds), and hacking (e.g. into your computer while connected to the Internet, or into files that made be held on a server at your Internet Service Provider). There are an increasing number of solutions to each of these concerns. The teletrader has to balance the cost of implementaiton vs. the cost of damage or loss. Thus, also there are encryption methods like PGP (Pretty Good Security) very few people actually use them, since the cost of learning about them, setting up a 'key' and then using it, often outweighs the perceived risk of other reading the mail or file transmitted. On the other hand, making part of your Web site password protected or inserting 'firewalls' may well be worthwhile to protect commercially sensitive information or to restrict access to particaulr people (e.g. paying customers). One development attracting a lot of interest is that of electronic signatures and also their legal status. The EU Electronic Commerce Memorandum of Understanding also provides guidelines for handling some of these issues and invites major companies to follow certain prinicples for teletrade. Further Information UK Department of Trade and Industry has put forward some views on security matters. Frequently Asked Questions on Security - 70 commons questions including "What to worry about?" and risks and precautions, but mostly from a perspective of having your own (Web) server on the Internet, as opposed to having some service provider run it offsite for you. PGP (Pretty Good Privacy) - Frequently Asked Questions PGP is widely used to protect the security of email messages and attachments - If you want your email to be more secure, this could be a good place to start. Internet Security - Details of the (US) Office of the Vice President's Federal Networking Council working group on Internet Security. Policy issues in layman's language. New Techologies and Pilot Projects There are various projects within the ACTS (Advanced Communications Technologies and Services) programme and othe EU funded research and development programmes that are moving forward the technology frontiers that will enhance teletrade. For example: TELESHOPPE - Teleshopping services using virtual reality and interactive multimedia The main objectives of TELESHOPPE are to investigate how the use of advanced multimedia technologies and virtual reality can stimulate the "touch and feel of physical shopping in a telepresence shopping experience, and to incorporate this research in a series of demonstrators and field trials using broadband ISDN and ATM networks. Other project summaries can be found on the INFOWIN server. Europe's contribution to the G7 Inventory - Electronic Commerce: Inventory of Initiatives -gives outlines of over 20 projects (not just those in EC programmes) in banking (Bolero), E-Cash, involvement of SMEs (Small and Medium Enterprises), SEMPER (Secure Electronic Marketplace for Europe), Swebizz (Swedish sales and marketing).