Designing EDA/SQL middleware systems to integrate web database and legacy database systems for e-business in an electric utility company.
Kim, Hakyun ; Lee, C. Christopher
INTRODUCTION
The Internet is a new cyber space for commercial online services
and data sharing. It is also a new system for transforming information
that people search and exchange throughout the world. The terms
"web workstyle" and "web lifestyle" have been used
to emphasize the effectiveness of corporations and customers using those
digital accesses. Especially, "web workstyle" is giving rise
to the revolution of commerce entirely. As a result, companies are
restructuring knowledge management systems and business operating
systems. Thus, this paper researches the electronic commerce system in
terms of electric utility service, and provides a framework to develop
e-business systems for the new digital generation customers. Many
electric utility companies may have temporarily overlooked what they
could accomplish if they established a presence on the Internet. Several
utilities and industry service companies are using their home pages as
repositories of information related to business deals such as
procurement activities, equipment sales, power purchase agreement
buyouts, and various other offerings. Online business, however, is still
in its infancy, and much remains to be done in order to establish the
web as a valid transaction medium.
Recent developments in the utility industry report that fifteen of
the America's largest electric and gas companies have formed a
consortium to build an Internet business exchange with suppliers. The
exchange will be open to use by any firm in the energy and utilities
industry, but the independent company will initially be owned by the
founding utilities. As the technology for web-enabled wireless devices
continues to evolve, utilities are being forced to consider strategies
for the deployment of wireless applications. In addition, utilities are
being forced to roll them out so they may cut costs or establish new
service revenues.
Managers in an electric utility firm may be a step behind the
Internet revolution, but in one key respect, they may have an advantage
over anyone else building an e-business web portal for
business-to-business (B2B) procurement. Executives in utility firms do
not fear government regulation, as they are already caught in the net.
That affinity may in fact prove downright useful. The possibility of the
Federal Trade Commission (FTC) taking a more active role in overseeing
B2B platforms is of particular interest for many e-procurement ventures
by the electric utilities industry. FTC rulings on e-business
marketplaces also may affect the scores of energy trading platforms
being constructed by utilities and power marketers.
E-business, electric trades that connect public organizations with
private customers, as yet, is not running at full capacity, even in
developed nations where it could be an enormous contribution to society.
Expected contributions are: (1) preexisting confidence, (2)
predictability, (3) reliability, and (4) convenient payment. Preexisting
confidence is defined as customers (demanders) trusting suppliers since
they trade with public organizations (other suppliers). Thus, the
customers have strong confidence buying public goods. The next
contribution, predictability, is enhanced by the following factors: the
price of each good is always based on both the details of the contract
which is made when customers apply for the first time, and on the
user's meters being measured monthly. In addition, the price of
each unit is fixed by the contract. There is no extra process to trade
because the same condition of contract and the same goods complete the
supplement and consumption of every month periodically and permanently.
Reliability is the third contribution. Other procedures to deliver the
services or products are not required. The goods can simply be delivered
by wires which are provided through public organizations and the
equipment of each customer. Consequently, consumers do not worry about
the time aspect, or whether they can use the products right now or in
the future, as public products are limitless. Lastly, convenient
payments play a significant role in the e-business. Electricity is
served periodically, continuously, and permanently to the same customer
at the same place and conditions. Thus, e-business of utility products
like electricity certainly enjoys the convenience when paying the bill.
The structure of the electric commerce system and the prototypes on
the web for e-business will be addressed next, along with the
contributions of e-business by the new system and directions for future
study. Lastly, a conclusion will be drawn.
LITERATURE REVIEW
Mullen (2000) insists that established energy companies are
extending their web infrastructures beyond basic information
presentation adding online customer service features such as electronic
bill payment, access to account information, and historical energy use.
Kennedy and Sabin (1999) reports a more cost-effective way to use the
web for the utility company. Some utility companies have found that the
Internet provides a cost-effective way to disseminate the information to
key customers. Monitoring and reporting systems tied to the Internet can
be linked to just a few or a few hundred power quality monitors. Size
and scope is dictated by the monitoring needs of the power provider and
its customers. At the heart of such a monitoring system, is a server
computer, optimized for database management and analysis. The server
provides file management, database administration and access to
databases via access to the World Wide Web. Seine (2000) explained that
the e-commerce light bulb has suddenly flashed on in the utility
industry. After a slow start, many utility companies are stampeding into
the e-business world in an effort to cut costs, improve service and lure
potential new customers in deregulated markets to their web sites. To
maintain their competitive edge, many utility firms are offering a
variety of front-end capabilities to customers on Web sites. Potential
back-end office savings are behind the March 2000 decision by 15 major
US electric and natural gas utilities forming an Internet-based
business-to-business procurement exchange to coordinate the purchase of
billions of dollars of products and services. However, web exchanges are
not the only e-business play in the utility industry. Many of the
existing examples of e-business are simple front-end operations.
Dysart (2000) explains the hacker attacks on electric utility
company. With the Internet community still unnerved by the demonstrated
vulnerability of the Net to hacker attacks, each utility firm should be
taking precautions to bulletproof its Web site. Now that more
electric-utility mainframes, networks, and PCs are linked to the Net via
high-speed always-on Internet connections, hackers may enjoy a 24-hr
window of opportunity breaking into Internet-based systems. It is
difficult for Internet system administrators to stay current with the
latest Internet security options. John Cox (2000) cites security of
middleware as one example. An e-business application that moves data
between clients and servers on the Internet can traverse scores of
computers, which offer the chance for compromising the data. Mallde and
Gavurin (1999) conclude that to Web-enable a legacy system, the
following issues should be considered: (1) OS and platform, (2)
middleware and component model, and (3) network performance and
security. Architectural options, which are discussed in detail, should
include: (1) web-enabled terminal emulation, (2) web-capability using
middleware and component models, and (3) web access to legacy data
stores and warehouses.
Harmon and Matthews (1999) developed the Internet application and
application server. Application servers are designed to support
applications with transaction processing or with complex decision
processing requirements and should be termed enterprise application
servers for clarity. The enterprise applications servers are discussed
in detail. Slater (2000) explains the needs of middleware. Essentially,
middleware is software that connects applications allowing them to
exchange data. Different types of applications and integration needs are
best served by different middleware systems. Spinner (1998) researches
various middleware solutions. Recently, trading desks and portfolio
management organizations have begun implementing various middleware
solutions allowing market data as well as transactional data to be
integrated and delivered to a plethora of mission-critical applications.
Now, the challenge is to determine how to manage many different
fragmented forms of middleware in order to ensure that data are rapidly
distributed to the correct applications in the proper format and that
data integrity is maintained. Middleware functions aimed at transforming
and distributing data are being quickly incorporated into common
database platforms.
E-BUSINESS SYSTEMS ARCHITECTURE FOR ELECTRIC UTILITY SERVICE
The cycle of e-business for electric utility service is a cycle of
measuring, computing, billing, and paying on the web. On the Internet,
customers can easily find out exactly how much energy they have used
during a certain period by pointing their web browser to the electric
utility company's web server. Also, customers can request
information related to their usage of goods and obtain the results
themselves. Moreover, customers can measure the amount of electricity
used on their own meters and enter the result on the Internet. If the
web and the consumer database are connected, both the amount of products
used and the price per month are computed. In addition, the used amount
and the computed price are updated after the customers approve the
output. The systems offer the customers several convenient ways to pay
the bill. Finally, the electric bill is paid as the customer chooses.
This study focuses on how to link business on the web to the
existing customer DB. In order to enable users to look up stored data on
the existing DB and manage a large quantity of the information
efficiently, many researchers are currently attempting to develop the
technologies of integrating the web and the existing DB systems.
Client/server technology can smoothly connect multi-clients with
multi-DB servers that are widely and locally distributed. As network
technologies and web technologies have developed tremendously, the
interests in both the client/server technology and the connection of
multi-DBs follow increasingly. To integrate the web and the existing DB
systems, this paper proposes a middleware systems which apply Enterprise
Data Access (EDA)/SQL technology.
EDA/SQL is an enterprise middleware system handling mainframe as
well as super-parallel servers. It supports client/server systems
development. EDA/SQL allows end-users to use user-friendly applications
software such as Microsoft Excel and Access. Also, EDA/SQL employs SQL,
an industry standard, which enables multi-data access among DBs
regardless of their DB architectures (relational or non-relational DB
architecture). When users connect their private web browsers with the
web server, the nature of the request is transmitted to the EDA client.
EDA clients link to the EDA server and then call for the process from
the EDA server to IMS. During the treatment of IMS DB, SQL commands
should be used. Next, the result from IMS is returned to the EDA server
again, to the EDA client, to the user's web server, and finally to
the user's PC in reverse order.
EMBODYING A PROTOTYPE OF E-BUSINESS FOR ELECTRICITY
The prototype concept of Electric Exchange System (EES) is proposed
in this study. A system of e-business called Electric Exchange System is
opened to enable authorized users to register. When an end-user
registers as a customer, an electronic customer number called a PIN is
provided. The customer can also register his own password and manage the
account. At the same time, the customer's bank account or credit
card number is also required for electronic payments. A mailing address
and telephone number is requested to offer information about products
including new services, complaints, or abnormal conditions which may
occur later. A separate server, equipped with firewall and acting as an
authorization server in the EES architecture, should operate the data
process for customer registration.
After completing the authorization process successfully, customers
can browser their personal information, historical records, detailed
report on their current electric usage and bill payments. In addition,
they can ask questions and request information including explanation of
billing rates, terms of service, etc. If a customer's request comes
through a web browser, the contents are moved to IMS via EDA/SQL. IMS
settles the asking and returns the results to a separated screen of the
EES.
When customers calculate their bill or settle their accounts due to
regularly scheduled reading or moving, they can record the amount of
electricity used and enter it through their web browser. Through this
process, the types of reading errors are reflected in the program in
advance. And the users can confirm the amount of the error if an invalid
reading is recorded. When the user inputs the amount read, the customer
enters only the value of each factor in accordance with the basic
information. Then, the data necessary to calculate a bill is called from
the customer database automatically by the EDA/SQL. Next, the amount
actually used by the customer and the accompanying price are computed by
pre-programmed formulas with data from the customer DB and the user
entered data in the EES. Finally, the output is displayed on the screen.
The customers receive the detailed record on the current usage, and
checks for the bill on the screen.
If the bill is correct and the customer would like to make a
payment, it is possible for the user to make the payment on the screen.
The master database is updated, accordingly. The customers prefer to not
update the database. The result of processing is for the customer's
reference only and avoids updating the database. When the customer makes
the payment on the screen, the contents of the entire process are
reserved and saved to another separated database. This process protects
the customer and the company from incorrect transactions.
It is convenient for the customer to make from which screen
displays the electronic payment, online billing, and automatic transfer.
Customers have two ways to pay bills, either by choosing the previous
way or by electronic payment. If electronic payment is chosen, the
system is linked to an electronic payment system where the payment is
completed by the electronic method the user chooses using a credit card
or debit card.
CONCLUSION
If the proposed e-business system is used, the following
contributions are expected to occur: first, less disputes and less
customer inquiries will occur due to "exact billing" in
accordance with the amount "actually used." Higher consumer
confidence about electric bills will occur because customers will
receive a detailed report on the current electricity usage which can be
obtained at anytime through the web browser. Also, the customer may
choose the payment method. Lastly, the customers may have additional
discounts and value-added service available through company incentive
programs.
The contribution to the electric utility firm will include (1) the
company can reduce large amount of fixed costs such as the expenses of
meter readings and mailing bills. As a result, improved management is
expected in proportion to the increase in the customer's rate. (2)
As the customer's data can be used immediately, the response time
for management will be faster and information quality will be enhanced
in terms of reliability. (3) The electronic payment results in better
cash flow since the collection period is shorter, especially, since
companies can often receive payment the same day via electronic
transfer.
If a remote automatic measuring system is developed and linked to
this system, the cycle of the electric trade, meter reading, bill
delivery and bill payment may be completed totally by automation on the
web. Consequently, the system will contribute to the innovation of
management techniques.
Concerns to be expected when the system is used are imperfect
computer access/internet access by customers and security which can be
controlled with a strong security system. Also, the users can change
their password. Fraud/wrong input data by customers is covered by a
company's manual check-up once or twice a year.
The key factor in deciding whether the system is considered
successful is to encourage more and more customers to use it. However,
customers may avoid using the proposed e-business system for the
following reasons: (1) the imperfect computer access/internet access,
(2) uncertainty of the system and procedures on the web, and (3) complex
steps to register and input the amount measured. Thus, incentives for
customers are strongly suggested. The more informed customers are, the
more they will participation in value-added service. Finally, the
attempt to connect public sectors with private sectors in e-business has
been examined.
REFERENCES
Bruno, L. (1999). Network Software. Data Communications, 28(1),
36-37.
Chiu, C. (2000). Reengineering Information Systems with XML.
Information Systems Management, 17(4), 40-54.
Cox, J. (2000). E-commerce Changing the Face of Databases. Network
World, 17(31), 38-40.
Engler, N. & Sulivan, C. (1999). On-line Design Resources.
Consulting Specifying Engineer, 5457.
Eskow D. (1999). The Middleware Market: Gluing Together Enterprises
and the Net. Upside, 11(3), 54-58.
Gilbert, A. (2000). Electric Shock. InformationWeek, 4-10.
Harmon P. and Matthews J. (1999). Spilling the "Beans"
About Enterprise Application Servers. Software Magazine, 19(2), 58-61.
Karpinski, R. (1999). Utility Sells Power Entirely on Web.
InternetWeek, 19-21.
Kennedy, B., & Sabin D. (1999). Use the Internet for Power
Quality Reporting. Electrical World, 64-66.
Kim, S. (1999). Global E-commerce. InformationWeek, 88-92.
Kufaht, P. (2000). Electric Companies Make Their Mark. Utility
Business, 14-20
Lang, S. (1999). Navigating IT in the Midst of Major Change.
Insurance & Technology, 24(9) 2325.
Lawton, G. (2000). Project Management Tools help Utilities.
Electrical World, 48-49.
Leibowitz, A. (2000). News: Energy Co. Partners with Internet
Agent. Venture Capital Journal, 1-5.
Mallder, S. & Gavurin, S. (1999). Web-enabling Legacy
Applications. Business Communications Review, 29(10), 51-58.
Mediate J. (2000). Integration Gives Utilities an Edge. American
Gas, 10-15.
Mitnick, S. (2000). Hometown Hubs: Local Profits via the Global
Web. Public Utilities Fortnightly, 20-23.
Morrissey, P. (2000). The Next Best Thing. Network Computing,
11(20), 151-154.
Nikola, S. (1999). Web Computing Framework. Journal of Systems
Architecture, 45(15), 1293-1306.
Ogden, J. (1998). Middleware in Trading. Global Finance, 12(8),
30-32.
Senia, A. (2000). Utilities Power up on the Internet. Utilities
Business, 28-32.
Sioshansi, F. (1998). E-Commerce Electrifies Utility Industry.
Communication News, 72-74.
Sioshansi, F. (1998). Information Requirements of Electric
Companies in the Competitive Environment. The Electricity Journal,
65-70.
Slater, D. (2000). The Integrated Enterprise: Middleware
Demystified CIO. Information Systems Management, 13(15), 126-132.
Stavros, R. (2000). E-commerce Collusion, the Trustbusters Take
Aim. Public Utilities Fortnightly, 48-55.
Suri, A. (1998). Extending the Enterprise: Taking EDI into the
Future. Business Communications Review, 28, 43-48.
Weil, M. (1998). Web-housing Wonders. Manufacturing Systems, 16(1),
60-66.
Zimmerman, D. (1999). A Web-based Platform for Experimental
Investigation of Electric Power Auctions. Decision Support Systems,
193-206.
Hakyun Kim, Pukyong National University
C. Christopher Lee, Central Washington University