Mon, 30 Dec 1996

'Big Blue' supports e-business in a big way

By Zatni Arbi

JAKARTA (JP): E-business, or e-commerce, looks set to be the next buzzword in the world of the Internet.

The Internet's potential revenue generator has been a hot topic since the early days of Net fever. Since then, many have succeeded in reaping substantial rewards through the Net, though many more again have failed dismally.

The question of security has been holding back customers and entrepreneurs alike from doing business on the Net. IBM ("Big Blue") has been actively providing technological and service supports to its customers for some time, to ensure that people can do business on the Net with confidence. With big players like IBM, Siemens, Hewlett-Packard and others providing improved technology and software, the benefits of the electronic marketplace may be realized sooner than many expected.

The requirements

The Internet has changed the way we live, work, learn and play, and it seems certain to continue to change our lives.

As we move from manufacturing-based industries to a service- based economy, the potential seems to be even more boundless. However, the electronic marketplace is in desperate need of fast and secure networks that will enable users to streamline processes, shorten delivery-to-market time, open new markets, attract new and retain old customers, connect with partners and suppliers, abolish barriers between teams and create new opportunities for growth.

Because of the Net's inherent complexity, no single technology can provide the answers to all business problems. What's needed are secure, reliable, integrated solutions, which are based on world class technology. These solutions should also be built out of a good understanding of the business needs that will turn e-business into reality.

Big Blue

The Global Services unit is an arm of IBM extending into 59 countries. With 100,000 professional employees, the unit has become IBM's fastest growing business, and the company's second- largest source of revenue. IBM's Global Industry Solutions unit, employing 30,000 professionals worldwide, develops tailored solutions to companies in 12 industry sectors including banking, insurance, health care, government, manufacturing and retailing.

As of today, IBM's offerings for e-business includes: (1) Domino, the new Web-enabled version of Lotus Notes software for groupwork; (2) Java Tools, a series of programs that optimize Java for e-business; (3) Cryptolope technology, software that will guarantee the security of document exchange and e-commerce; (4) CommercePOINT, a comprehensive family of services that streamlines online business-to-business and business-to-consumer transactions and (5) Web Object Manager (WOM), a series of technologies enabling the quick creation of dynamic, customized Web pages for transactional Web sites, and managing network traffic across multiple servers around the world.

In addition, the following tools are also available: (1) Net.Commerce Payment, which is a group of products based on the Secure Electronic Transactions (SET) standard allowing customers to use credit cards online and ensures security; (2) IBM SecureWay, which provides solutions for controlling network security; (3) Datamining solutions that enable businesses to analyze customer actions at the Web site and create one-on-one marketing relationship with customers; (4) Web enabled middleware, including CICS, DB2 and the MQ Series that enables businesses to integrate existing data into new, Web-based solutions and (5) All the necessary hardware such as servers and workstations.

The Cryptolope technology represents an interesting approach to security. Functioning much like an ordinary envelope, it is an electronic container that holds an encrypted version of text documents or electronic commodities such as music, film, art, software, graphics and multimedia products. It can be shipped through the networked universe faster than any courier service. While encrypted material remains snug and protected during the journey, a readable abstract -- describing the contents, price, and terms and conditions -- heralds the package's arrival.

Once the recipient has agreed to terms and conditions, they are able to open the container using special keys provided to registered users only. IBM, as the owner of the Cryptolope, will bill the buyer and remit payment to the content owner.

Web Commerce

Internet solutions designed for advanced Web Commerce already available on the Net include:

1. Energy Network Exchange, a service provided jointly by IBM and Siemens enabling electric utilities to sell excess electricity on the Net. It provides an electronic method for the purchase and distribution of wholesale electric power that complies with new U.S. Federal requirements. Pacific Gas and Electric was the first to take up this method.

2. PetroConnect is a new Web site which allows petroleum exploration professionals to exchange critical geologic information. Under this system, professionals can collaborate and take advantage of its capabilities for locating and accessing digital databases, such as maps, surveys, well logs and seismic data, as well as for acquiring research reports, statistical findings and industry standards.

3. World Avenue, an online shopping service on the World Wide Web. Here, consumers can navigate intuitively, viewing a selection of goods tailored to their needs and interests and make purchases quickly and securely. At the same time, retailers can create dynamic and highly customized interactive catalogs, using a merchant's toolkit. The available tools and technology allows retailers to capture key information about their customers' browsing and purchasing habits -- with the customers' consent. World Avenue enables retailers to analyze retail data quickly and simply for micro-merchandising purposes.

The World Avenue's address is http://worldavenue.com. At the moment you can order steaks and other gourmet foods from Omaha Steaks, although they may not arrive as fresh as you'd like them. Other retailers include Fragrance Counter, Gotschalk's and Avante Jewelry. More Cyber-stores will open their storefront business on the electronic avenue.

Many questions still linger. For instance, how will the rights of electronic buyers be protected? IBM says that the intelligent agents -- electronic "personal assistants" that create profiles of individual shoppers based on past purchases, demographic information and shopping preferences -- they have created ask for the shoppers' consent before asking for details. But who will see that this consent continues to be obtained before those agents get down to work? And who will be responsible for educating shoppers and informing them of their right not to give this information in the first place?

Nonetheless, it's clear that Big Blue's initiatives in e- business bring us closer to a time when we can confidently do business from the comfort of our home.