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EC Final Course

Electronic Commerce

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Tahir Nadeem
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0% found this document useful (0 votes)
68 views104 pages

EC Final Course

Electronic Commerce

Uploaded by

Tahir Nadeem
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 104

Chapter 1

Overview of Electronic Commerce


 Website Collection of various different web pasges
 Webpage page available onlie which contains infor or data in the form of text
image audio or video
Electronic Commerce:
Definitions and Concepts
 electronic commerce (EC)
The process of buying, selling, or exchanging products, services, or
information via computer
 e-business
A broader definition of EC that includes not just the buying and selling of
goods and services, but also servicing customers, collaborating with business
partners, and conducting electronic transactions within an organization

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-3


Electronic Commerce:
Definitions and Concepts

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-4


Electronic Commerce:
Definitions and Concepts
 OTHER EC CONCEPTS
 Pure Versus Partial EC
 Physical Product Physical Delivery Traditional Commerce
 Digital Product Physical Delivery Partial E Commerce
 Digital Product Digital Delivery Pure E Commerce

 EC Organizations
 brick-and-mortar (old economy) organizations No online order no transaction just info.
Old-economy organizations (corporations) that perform their primary business off-line, selling physical products by
means of physical agents
 virtual (pure-play) organizations ali baba daraz food panda
Organizations that conduct their business activities solely online
 click-and-mortar (click-and-brick) organizations
Organizations that conduct some e-commerce activities, usually as an additional marketing channel

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-5


Electronic Commerce:
Definitions and Concepts
 electronic market (e-marketplace)
An online marketplace where buyers and sellers meet to exchange goods,
services, money, or information

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-6


Electronic Commerce:
Definitions and Concepts
 Interorganizational information systems (IOSs)
Communications systems that allow routine transaction processing and information
flow between two or more organizations
 Intraorganizational information systems
Communication systems that enable e-commerce activities to go on within
individual organizations

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-7


The Electronic Commerce Field:
Classification, Content, and History
 intranet
An internal corporate or government network that uses Internet tools, such
as Web browsers, and Internet protocols
 extranet
A network that uses the Internet to link multiple intranets

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-8


The Electronic Commerce Field:
Classification, Content, and History
 AN EC FRAMEWORK
 Five support areas for EC applications
 People buyer seller tcs
 Public policy favorable no tax on purchase etc.
 Marketing and advertisement olx hafeezcenter.pk zameen.com
 Support services banking corier cod
 Business partnerships exclusive service available on our wesite

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-9


The Electronic Commerce Field:
Classification, Content, and History
 EC IS CLASSIFIED BY THE NATURE AND DIRECTION OF
TRANSACTIONS AND INTERACTIONS
 business-to-business (B2B) Wholesale
E-commerce model in which all of the participants are
businesses or other organizations
 business-to-consumer (B2C) Retail
E-commerce model in which businesses sell to individual
shoppers Ali express daraz uber careem
 e-tailing
Online retailing, usually B2C retailing done online is called
retailing
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-10
The Electronic Commerce Field:
Classification, Content, and History
 business-to-business-to-consumer (B2B2C) Distribution involved,
E-commerce model in which a business provides some product or service to a client
business that maintains its own customers AOl
 consumer-to-business (C2B)
E-commerce model in which individuals use the Internet to sell products or services
to organizations or individuals who seek sellers to bid on products or services they
need

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-11


The Electronic Commerce Field:
Classification, Content, and History
 intrabusiness EC
E-commerce category that includes all internal organizational activities that
involve the exchange of goods, services, or information among various units and
individuals in an organization
 business-to-employees (B2E)
E-commerce model in which an organization delivers services, information, or
products to its individual employees

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-12


The Electronic Commerce Field:
Classification, Content, and History
 consumer-to-consumer(C2C)
E-commerce model in which consumers sell directly to other consumers
 collaborative commerce (c-commerce)
E-commerce model in which individuals or groups communicate or collaborate
online

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-13


The Electronic Commerce Field:
Classification, Content, and History
 e-learning
The online delivery of information for purposes of training or education
 e-government
E-commerce model in which a government entity buys or provides goods, services,
or information from or to businesses or individual citizens

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-14


E-Commerce 2.0: From Web 2.0 to Enterprise
Social Networking and Virtual Worlds

 social computing
An approach aimed at making the human-computer interface more natural
 Web 2.0
The second-generation of Internet-based services that let people collaborate
and share information online in new ways, such as social networking sites,
wikis, communication tools, and folksonomies

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-15


E-Commerce 2.0: From Web 2.0 to Enterprise
Social Networking and Virtual Worlds

 social network
A category of Internet applications that help connect friends, business
partners, or individuals with specific interests by providing free services such
as photo presentations,
e-mail, blogging, and so on using a variety of tools

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-16


Chapter 2
E-Marketplaces: Mechanisms, Tools, and Impacts of E-commerce
E-Marketplaces

 e-marketplace
An online market, usually B2B, in which buyers and sellers exchange goods or
services; the three types of e-marketplaces are private, public, and consortia
 marketspace
A marketplace in which sellers and buyers exchange goods and services for
money (or for other goods and services), but do so electronically

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-18


E-Marketplaces

 E-MARKETPLACE COMPONENTS AND PARTICIPANTS


 digital products
Goods that can be transformed to digital format and delivered over the Internet
 front end
The portion of an e-seller’s business processes through which customers interact,
including the seller’s portal, electronic catalogs, a shopping cart, a search engine,
and a payment gateway

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-19


E-Marketplaces

 back end
The activities that support online order fulfillment, inventory management,
purchasing from suppliers, payment processing, packaging, and delivery
 intermediary
A third party that operates between sellers and buyers

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-20


E-Marketplaces

 TYPES OF E-MARKETPLACES
 Private E-Marketplaces Owned and operated by a single company.
 sell-side e-marketplace b2c one to many
A private e-marketplace in which one company sells either standard and/or customized
products to qualified companies
 buy-side e-marketplace
A private e-marketplace in which one company makes purchases from invited suppliers
 Public E-Marketplaces b2b markets ofte owned by a 3rd party or by a group of
buying or selling companies serve many sellers and many buyers. Alo known as
Exchanges, e.g stock exhanges regulated by govt or the owner.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-21


Customer Interaction Mechanisms:
Storefronts, Malls, and Portals
 storefront
A single company’s Web site where products or services are sold
 e-mall (online mall)
An online shopping center where many online stores are located

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-22


Customer Interaction Mechanisms:
Storefronts, Malls, and Portals
 TYPES OF STORES AND MALLS
 General stores/malls large market places that sell all types of products
department and discount stores amazon.com aol yahoo,com
 Specialized stores/malls sell one or a few types of products, amazon started as a
specialized book store,
 Regional versus global stores
 Pure-play online organizations versus click-and-mortar stores
 Web portal
A single point of access, through a Web browser, to critical business
information located inside and outside (via Internet) of an organization

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-23


Customer Interaction Mechanisms:
Storefronts, Malls, and Portals
 Types of Portals
 Commercial (public) portal
 Corporate portals
 Publishing portals
 Personal portals
 mobile portal
A portal accessible via a mobile device
 voice portal
A portal accessed by telephone or cell phone
 Knowledge portals

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-24


Auctions, Bartering,
and Negotiating Online
 auction
A competitive process in which a seller solicits consecutive bids from buyers
(forward auctions) or a buyer solicits bids from sellers (backward auctions).
Prices are determined dynamically by the bids
 electronic auctions (e-auctions) used in b2c b2b c2c´g2b g2c and more
Auctions conducted online
 Innovative Auctions

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-25


Auctions, Bartering,
and Negotiating Online
 dynamic pricing
Prices that change based on supply and demand relationships at any given
time
 One Buyer, One Seller negititation bartering bargaining
 One Seller, Many Potential Buyers
 forward auction
An auction in which a seller entertains bids from buyers. Bidders increase price
sequentially

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-26


Auctions, Bartering,
and Negotiating Online
 reverse auction (bidding or tendering system)
Auction in which the buyer places an item for bid (tender) on a request for quote (RFQ)
system, potential suppliers bid on the job, with the price reducing sequentially, and the
lowest bid wins; primarily a B2B or G2B mechanism
 “name-your-own-price” model
Auction model in which a would-be buyer specifies the price (and other terms) he or she is
willing to pay to any willing and able seller. It is a C2B model that was pioneered by
Priceline.com

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-27


Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-28
Auctions, Bartering,
and Negotiating Online
 Many Sellers, Many Buyers
 double auction
An auction in which multiple buyers and their bidding prices are matched with multiple
sellers and their asking prices, considering the quantities on both sides

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-29

Copyright © 2009 Pearson Education,


Inc. Publishing as Prentice Hall
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-30
Auctions, Bartering,
and Negotiating Online
 Limitations of E-Auctions
 Minimal Security c2c credit card numbers stolen
 Possibility of Fraud buyer cannot see may get defective items
 Limited Participation by invitation only open to dealers only
 Impacts of Auctions
 Auctions as a Coordination Mechanism fro making price equilibrium. Auction for allocation
of telecom bandwidth
 Auctions as a Social Mechanism to Determine a Price
 Auctions as a Highly Visible Distribution Mechanism
 Auctions as an EC Component
 Auctions for Profit for Individuals

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-31


Auctions, Bartering,
and Negotiating Online
 ONLINE BARTERING
 bartering
The exchange of goods and services
 e-bartering (electronic bartering)
Bartering conducted online, usually in a bartering exchange
 bartering exchange
A marketplace in which an intermediary arranges barter transactions
 ONLINE NEGOTIATING

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-32


Web 2.0 Tools and Services:
From Blogs to Wikis
 BLOGGING (WEBLOGGING)
 blog
A personal Web site that is open to the public to read and to interact with;
dedicated to specific topics or issues
 vlog (or video blog)
A blog with video content

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2-33


Chapter 17 Dynamic Trading:
E-Auctions, Bartering, and Negotiations
Fundamentals of
Dynamic Pricing and E-Auctions
 auction
Market mechanism by which buyers make bids and sellers place offers;
characterized by the competitive and dynamic nature by which the final price
is reached
 electronic auctions (e-auctions)
Auctions conducted online
 dynamic pricing
Fluctuating prices that are determined based on supply and demand relationships
at any given time

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-35


Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-36
Fundamentals of
Dynamic Pricing and E-Auctions
 ONE BUYER, ONE SELLER
 ONE SELLER, MANY POTENTIAL BUYERS (FORWARD AUCTIONS)
 forward auction
An auction in which a seller offers a product to many potential buyers

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-37


Fundamentals of
Dynamic Pricing and E-Auctions
 sealed-bid auction
Auction in which each bidder bids only once; a silent auction, in which bidders do
not know who is placing bids or what the bid prices are
 Vickrey auction
Auction in which the highest bidder wins but pays only the second highest bid

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-38


Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-39
Fundamentals of
Dynamic Pricing and E-Auctions
 ONE BUYER, MANY POTENTIAL SELLERS
 reverse auction
Auction in which the buyer places an item for bid (tender) on a request for quote
(RFQ) system; potential suppliers bid on the job, with bid price reducing
sequentially, and the lowest bid wins; used mainly in B2B and G2B e-commerce
 B2B Reverse Auctions

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-40


Fundamentals of
Dynamic Pricing and E-Auctions
 C2C Reverse Auctions
 “name-your-own price” model
Auction model in which would-be buyers specify the price (and other terms) they are
willing to pay to any willing seller; a C2B model pioneered by Priceline.com
 MANY SELLERS, MANY BUYERS
 vertical auction
Auction that takes place between sellers and buyers in one industry or for one
commodity
 auction vortals
Another name for a vertical auction vertical portal

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-41


Benefits, Limitations, and
Strategic Uses of E-Auctions
 BENEFITS OF E-AUCTIONS
 Benefits to Sellers
 Larger reach and increased revenues
 Optimal price setting
 Removal of expensive intermediaries
 Liquidation
 Lower transaction costs
 Lower administrative costs
 Better customer relationships

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-42


Benefits, Limitations, and
Strategic Uses of E-Auctions
 Benefits to Buyers
 Opportunities to find unique items and collectibles
 Lower prices
 Anonymity
 Convenience
 Entertainment
 Benefits to E-Auctioneers
 Higher repeat purchases
 A stickier Web site
 Expansion of the auction business

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-43


Benefits, Limitations, and
Strategic Uses of E-Auctions
 LIMITATIONS OF E-AUCTIONS
 Possibility of fraud
 Limited participation
 Security
 Auction software
 Long cycle time
 Monitoring time
 Equipment for buyers
 Order fulfillment costs

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-44


Benefits, Limitations, and
Strategic Uses of E-Auctions
 STRATEGIC USES OF AUCTIONS AND PRICING MECHANISMS
 AUCTIONS FOR PUBLICITY

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-45


The “Name-Your-Own-Price” C2B Model
and Priceline.Com
 The “name-your-own-price” model, pioneered by Priceline.com enables
consumers to achieve significant savings by naming their own price for goods
and services
 The concept is that of a C2B reverse auction, in which vendors bid on a job by
submitting offers and the lowest priced vendor or the one that meets the
buyer’s requirements gets the job
 The buyer can place a request for travel or even housework they need done

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-46


E-Auction Fraud and Its Prevention

 Selling Reproductions as Originals


 Failure to Pay
 Failure to Pay the Auction House
 High Shipping Costs and Handling Fees
 Failure to Ship Merchandise
 Loss and Damage Claims
 Fake Escrow Services
 Switch and Return
 Other Frauds

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-47


E-Auction Fraud and Its Prevention

 PROTECTING AGAINST E-AUCTION FRAUD


 User Identity Verification
 Authentication Service
 Grading Services
 Insurance Policy
 Escrow Services
 Nonpayment Punishment

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-48


E-Auction Fraud and Its Prevention

 Appraisal Services
 Physical Inspection
 Item Verification
 Buyer Protections
 Spoof (Fraudulent) Web Site Protection
 eBay Security Center
 Feedback Forum and Analysis

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-49


Chapter 4
Internet Marketing, and Advertising
Web Advertising

• Advertising is an attempt to disseminate information in order to affect buyer–


seller transactions
– In traditional marketing, advertising was impersonal, one-way mass communication
that was paid for by sponsors
 interactive marketing
Online marketing, facilitated by the Internet, by which marketers and advertisers
can interact directly with customers, and consumers can interact with
advertisers/vendors

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-51


Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-52
Web Advertising

 The Advertising Cycle


 ad views
The number of times users call up a page that has a banner on it during a specific
period; known as impressions or page views
 button
A small banner that is linked to a Web site; may contain downloadable software
 page
An HTML (Hypertext Markup Language) document that may contain text, images,
and other online elements, such as Java applets and multimedia files; may be
generated statically or dynamically

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-53


Web Advertising

 click (click-through or ad click)


A count made each time a visitor clicks on an advertising banner to access the
advertiser’s Web site
 CPM (cost per thousand impressions)
The fee an advertiser pays for each 1,000 times a page with a banner ad is shown
 conversion rate
The percentage of clickers who actually make a purchase

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-54


Web Advertising

 click-through rate
The percentage of visitors who are exposed to a banner ad and click on it
 click-through ratio
The ratio between the number of clicks on a banner ad and the number of times it
is seen by viewers; measures the success of a banner in attracting visitors to click
on the ad
 hit
A request for data from a Web page or file

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-55


Web Advertising

 visit
A series of requests during one navigation of a Web site; a pause of a certain length
of time ends a visit
 unique visit
A count of the number of visitors entering a site, regardless of how many pages are
viewed per visit
 stickiness
Characteristic that influences the average length of time a visitor stays in a site

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-56


Web Advertising
 Advertising Online and Its Advantages
 Cost
 Richness of format
 Personalization
 Timeliness
 Location-basis
 Linking
 Digital branding
 advertising networks
Specialized firms that offer customized Web advertising, such as brokering
ads and targeting ads to select groups of consumers

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-57


Online Advertising Methods

 BANNERS
 banner
On a Web page, a graphic advertising display linked to the advertiser’s Web page
 keyword banners
Banner ads that appear when a predetermined word is queried from a search
engine
 random banners
Banner ads that appear at random, not as the result of the user’s action

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-58


Online Advertising Methods

 Benefits and Limitations of Banner Ads


 major benefit is users are transferred directly to an advertiser’s site, often the shopping
page
 major disadvantage of banners is their cost
 banner swapping
An agreement between two companies to each display the other’s banner ad on its
Web site
 banner exchanges
Markets in which companies can trade or exchange placement of banner ads on
each other’s Web sites

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-59


Online Advertising Methods

 POP-UP AND SIMILAR ADS


 pop-up ad
An ad that appears in a separate window before, after, or during Internet surfing or
when reading e-mail
 pop-under ad
An ad that appears underneath the current browser window, so when the user
closes the active window the ad is still on the screen
 E-MAIL ADVERTISING
 NEWSPAPER-LIKE AND CLASSIFIED ADS

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-60


Online Advertising Methods

 SEARCH ENGINE ADVERTISEMENT


 URL Listing
 Keyword Advertising
 search engine optimization (SEO)
The craft of increasing site rank on search engines; the optimizer uses the ranking
algorithm of the search engine (which may be different for different search
engines) and best search phrases, and tailors the ad accordingly

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-61


Online Advertising Methods

 GOOGLE—THE ONLINE ADVERTISING KING


 ADVERTISING IN CHAT ROOMS
 OTHER FORMS OF ADVERTISING
 Advertising in Online Newsletters
 Posting Press Releases Online
 Video Ads
 advergaming
The practice of using computer games to advertise a product, an organization, or a
viewpoint

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-62


Special Advertising
and Implementation Topics
 PERMISSION ADVERTISING
 spamming
Using e-mail to send unwanted ads (sometimes floods of ads)
 permission advertising (permission marketing)
Advertising (marketing) strategy in which customers agree to accept advertising
and marketing materials (known as opt-in)

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-63


Special Advertising
and Implementation Topics
 SOME IMPLEMENTATION ISSUES
 admediaries
Third-party vendors that conduct promotions, especially large-scale ones
 Ad Exchanges
 Advertisement as a Revenue Model
 Measuring Online Advertising’s Effectiveness

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-64


Chapter 10
E-Commerce Fraud and Security
The Information Security Problem

 WHAT IS EC SECURITY?
 Computer security refers to the protection of data, networks, computer programs,
computer power and other elements of computerized information systems
 CSI Computer Crime and Security Survey
Annual security survey of U.S. corporations, government agencies, financial and
medical institutions, and universities conducted jointly by the FBI and the
Computer Security Institute

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 10-66


Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 10-67
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 10-68
The Information Security Problem

 THE DRIVERS OF EC SECURITY PROBLEMS


 The Internet’s Vulnerable Design
 domain name system (DNS)
Translates (converts) domain names to their numeric IP addresses
 IP address
An address that uniquely identifies each computer connected to a network or the Internet

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 10-69


The Information Security Problem

 The Shift to Profit-Induced Crimes


 Internet underground economy
E-markets for stolen information made up of thousands of Web sites that sell credit
card numbers, social security numbers, other data such as numbers of bank
accounts, social network IDs, passwords, and much more
 keystroke logging (keylogging)
A method of capturing and recording user keystrokes

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 10-70


Basic E-Commerce
Security Issues and Landscape
 BASIC SECURITY TERMINOLOGY
 business continuity plan
A plan that keeps the business running after a disaster occurs. Each function in the
business should have a valid recovery capability plan
 cybercrime
Intentional crimes carried out on the Internet
 exposure
The estimated cost, loss, or damage that can result if a threat exploits a vulnerability
 fraud
Any business activity that uses deceitful practices or devices to deprive another of
property or other rights

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 10-71


Basic E-Commerce
Security Issues and Landscape
 malware (malicious software)
A generic term for malicious software
 phishing
A crimeware technique to steal the identity of a target company to get the
identities of its customers
 risk
The probability that a vulnerability will be known and used
 social engineering
A type of nontechnical attack that uses some ruse to trick users into revealing
information or performing an action that compromises a computer or network

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 10-72


Basic E-Commerce
Security Issues and Landscape
 spam
The electronic equivalent of junk mail
 vulnerability
Weakness in software or other mechanism that threatens the confidentiality,
integrity, or availability of an asset (recall the CIA model). It can be directly used
by a hacker to gain access to a system or network
 zombies
Computers infected with malware that are under the control of a spammer,
hacker, or other criminal

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 10-73


Chapter 10
Mobile Commerce
and Pervasive Computing
Nextbus:
A Superb Customer Service
 The Problem
 San Francisco buses have difficulty keeping up with the posted schedule,
especially during rush hours
 The scheduled times become meaningless

© Prentice
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Hall 2004
Nextbus (cont.)

 The Solution
 San Francisco implemented a system called NextBus (nextbus.com)
 The system tracks public transportation buses in real time
 NextBus calculates the estimated arrival time of the bus to each bus stop on the
route

© Prentice
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Hall 2004
Nextbus (cont.)

 Arrival times are displayed in real time on:


 Internet-enabled wireless device
 The Internet and on a public screen at each bus stop
 GPS satellites let the NextBus information center know where a bus is located
making it possible to calculate arrival times

© Prentice
77
Hall 2004
Nextbus (cont.)

© Prentice
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Hall 2004
Nextbus (cont.)

 The Results
 Worries about missing the bus are diminished
 A bus company can also use the system to improve scheduling, arrange for extra
buses when needed, and make its operations more efficient

© Prentice
79
Hall 2004
Nextbus (cont.)

 What we can learn…


 location-based e-commerce, a major part of mobile commerce
 EC services are provided to customers wherever they are located
 exemplifies pervasive computing—services are seamlessly blended into the
environment without the user being aware of the technology behind the scenes

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Mobile Commerce

 Mobile commerce (m-commerce,


m-business): Any e-commerce done in a wireless environment, especially via
the Internet
 A natural extension of e-business
 Mobile devices create an opportunity to deliver new services to existing
customers

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Mobile Commerce Generations

 1G: The first generation of wireless technology, which was analog based
 2G: The second generation of digital wireless technology; accommodates
mainly text

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Mobile Commerce
Generations (cont.)
 2.5G: Interim wireless technology that can accommodate limited graphics
 3G: The third generation of digital wireless technology; supports rich media
such as video clips

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Mobile Commerce (cont.)

Twelve applications of m-commerce


 Mobile financial applications  Proactive service
(B2C, B2B) management (B2C, B2B)
 Mobile advertising (B2C)  Product locating and
shopping (B2C, B2B)
 Mobile inventory
management (B2C, B2B)  Wireless reengineering (B2C,
B2B)

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Mobile Commerce (cont.)

Twelve applications of m-commerce


 Mobile auction or reverse  Mobile distance education
auction (B2C) (B2C)
 Mobile entertainment  Wireless data center (B2C,
services (B2C) B2B)
 Mobile office (B2C)  Mobile music/music-on-
demand (B2C)

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Mobile Commerce:
Attributes and Benefits
 Specific attributes of m-commerce
 Mobility
 Broad reach
 Benefits of value-added attributes
 Ubiquity
 Convenience
 Instant connectivity
 Personalization
 Localization of products and services

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Mobile Commerce (cont.)

 Drivers of m-commerce
 Widespread availability of devices
 No need for a PC
 The handset culture
 Vendors’ push
 Improvement of bandwidth

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Chapter 7
Innovative EC Systems:
From E-Government and E-Learning to
Consumer-to-Consumer E-Commerce
E-Government: An Overview

 e-government
E-commerce model in which a government entity buys or provides goods,
services, or information to businesses or individual citizens
 e-democracy (cyberdemocracy, digital democracy)
The use of EC and electronic communications technologies, such as the
Internet, in enhancing democratic processes within a democratic country

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7-89


E-Government: An Overview

 government-to-citizens (G2C)
E-government category that includes all the interactions between a
government and its citizens
 Electronic Voting
 Electronic Benefits Transfer

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7-90


Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7-91
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7-92
E-Government: An Overview

 government-to-business (G2B)
E-government category that includes interactions between governments and
businesses (government selling to businesses and providing them with services
and businesses selling products and services to government)

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7-93


E-Government: An Overview

 GOVERNMENT-TO-BUSINESS
 Government E-Procurement
 Group Purchasing
 Forward E-Auctions

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7-94


E-Government: An Overview

 government-to-government (G2G)
E-government category that includes activities within government units and
those between governments
 government-to-employees (G2E)
E-government category that includes activities and services between
government units and their employees
 Internal Efficiency and Effectiveness (IEE)

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7-95


Implementing E-Government

 THE TRANSFORMATION TO E-GOVERNMENT


 Stage 1: Information publishing/dissemination
 Stage 2: “Official” two-way transactions with one department at a time
 Stage 3: Multipurpose portals
 Stage 4: Portal personalization
 Stage 5: Clustering of common services
 Stage 6: Full integration and enterprise transformation
 Stage 7:Transition to social computing

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7-96


Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7-97
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 <form method="post" action="b1.asp">
<input name="ln" type="text" size="20" />
</td>
</tr>
<tr>
<td
height="38"><strong>Country:</strong><
/td>

<td><select name="cntry">
<option>Pakistan</option>
<option>America</option>
<option>China</option>
<option>Russsia</option>
<option>Germany</option>
</select></td>
<!DOCTYPE html>
<html>
<body>

<h2>Password field</h2>

<p>The <strong>input type="password"</strong> defines


a password field:</p>

<form action="/action_page.php">
<label for="username">Username:</label><br>
<input type="text" id="username"
name="username"><br>
<label for="pwd">Password:</label><br>
<input type="password" id="pwd" name="pwd"><br><br>
<input type="submit" value="Submit">
</form>

<p>The characters in a password field are masked (shown


as asterisks or circles).</p>

</body>
</html>
<input type="radio" id="male" name="gender"
value="male">
<label for="male">Male</label><br>

<form action="/action_page.php" method="get">


<input type="checkbox" name="vehicle1" value="Bike">

<label for="cars">Choose a car:</label>

<select name="cars" id="cars">
  <option value="volvo">Volvo</option>
  <option value="saab">Saab</option>
  <option value="mercedes">Mercedes</option>
  <option value="audi">Audi</option>
</select>

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