Wednesday, April 2, 2008
Chapter 10 Key Concepts
- Biometric Security Device-is a device that uses an element of a person’s biological make up to perform the identification.
- Privacy-is the protection of individual rights to nondisclosure.
- Sniffer Programs-provide the means to record information that passes through a computer or router that is handling Internet traffic.
- Backdoors-electronic holes found by security experts.
- Active Wiretapping-exists when an unauthorized party can alter a message stream of information.
- Cybervandilism-is the electronic defacing of an existing Web site’s page.
- Masquerading or Spoofing-pretending to be someone you are not, or representing a web site as an original when it is a fake; it is a means of disrupting Web sites.
- Domain Name Servers (DNSs)-are the computers on the internet that maintain directories that link domain names to IP addresses.
- Phishing Expeditions-exploits that capture confidential customer information.
- Necessity Threat/Delay/Denial/Denial of Service (DoS)-used to disrupt normal computer processing, or deny processing entirely.
- Wardrivers-some cities have large concentrations of wireless networks, attackers drive around in cars using their wireless equipped laptop computers to search for open accessible networks, these attackers are called wardrivers.
- Warchalking-when wardrivers find an easily accessible network they mark the building to let other wardrivers know.
- Encryption Program-a program that transfers plaint text (normal text) into cipher text (the unintelligible string of characters).
- Cryptography-the science that studies encryption.
- Encryption Algorithm-the logic behind an encryption program that includes the mathematics used to do the transformation from plaint text to cipher text.
- Hash Coding-is a process that uses a hash algorithm to calculate a number, called a hash value, from a message of any length.
- Asymmetric Encryption or Public Key Encryption-encodes messages by using two mathematically related numeric keys.
- Symmetric Encryption or Private Key Encryption-encodes a message with one of several available algorithms that use a single numeric key, to encode and decode data.
- Pretty Good Privacy (PGP)-one of the most popular technologies used to implement public key encryption today.
- Data Encryption Standard (DES)-is a set of encryption algorithms adopted by the US government for encrypting sensitive or commercial information.
- Triple Data Encryption Standard (Triple DES or 3DES)-a stronger version of the DES used by the US government today. Can’t be cracked even with today’s supercomputers.
- Advanced Encryption Standard (AES)-the US governments National Institute of Standards and Technology (NIST) developed this latest encryption standard designed to keep government information secure.
- Secure Sockets Layer (SSL)-a system developed by Netscape Communications and the Secure Hypertext Transfer Protocol (S-HTTP) developed by CommerceNet are two protocols that provide secure information transfer through the internet.
- Session Key-is a key used by an encryption algorithm to create cipher text from plain text during a single secure session.
- Secure Envelope-encapsulates a message and provides secrecy, integrity, and client/server authentication.
- Integrity Violation-occurs whenever a message is altered while in transit between the sender and receiver.
- Message Digest-an encryption program converts text into a message digest; it is a small integer number that summarizes the encrypted information.
- Digital Signature-an encrypted message digest (message hash value).
- Dictionary Attack Programs-cycle through an electronic dictionary, trying every word in the book as a password.
- Buffer-is an area of memory set aside to hold data read from a file or database.
- Buffer Overflow/Overrun-programs that fill buffers can malfunction and overfill the buffer, spilling the excess data outside the designated buffer memory area.
- Mail Bomb-occurs when hundreds or thousands of people each send a message to a particular address.
- Access Control List (ACL)-is a list or database of files and other resources and the usernames of people who can access the files and other resources.
- Firewall-is software or a hardware and software combination that is installed in a network to control the packet traffic moving through it.
- Trusted-networks within the firewall.
- Untrusted-networks outside the firewall.
- Packet Filter Firewalls-examine all data flowing back and forth between the trusted network (within the firewall) and the Internet.
- Gateway Servers-are firewalls that filter traffic based on the application requested.
- Proxy Server Firewalls-are firewalls that communicate with the Internet on the private network’s behalf.
- Intrusion Detection Systems-are designed to monitor attempts to login to servers and analyze those attempts for patterns that might indicate a cracker’s attack is underway.
Chapter 9 Key Concepts
Chapter 9 - Electronic Commerce Software
· Self Hosting-when companies need to incorporate electronic commerce components; they may opt to run servers in house.
· Shared Hosting-means that the client’s web site is on a server that hosts other web sites simultaneously and is operated by the service provider at its location.
· Dedicated Hosting-the server provider makes a Web server available to the client, but the client does not share the server with other clients of the service provider.
· Collocation Service-the service provider rents a physical space to the client to install its own server hardware.
· Scalable-the best hosting services provide Web server hardware and software combinations that are scalable; which means they can be adapted to meet changing requirements when their clients grow.
All Electronic Commerce solutions must at least provide (CST):
· A catalogue display
· Shopping cart capabilities
· Transaction processing
· Catalogue-is a listing of goods and services.
· Static Catalogue-is a simple list, written in HTML that appears on a Web page or a series of web pages.
· Dynamic Catalogue-stores the information about times in a database, usually on a separate computer that is accessible to the server that is running the descriptions, and a search tool that allows customers to search for an item and determine its availability.
· Interoperability-is making a company’s information systems work together.
o Middleware-a software program that larger companies use to establish the connections between their electronic commerce software and their existing accounting system.
· Application Program/Software-a program that performs a specific function, such as creating invoices, calculating payroll, or processing payments received from customers.
· Application Server-is a computer that takes the request messages received by the Web server and runs application programs that perform some kind of action based on the contents of the request message.
· Database Manager-is software that stores information in a highly structured way.
· Distributed Information Systems-large information systems that store the same data in many different physical locations; and the databases within those systems are called distributed database systems.
· Web Services-a combination of software tools that let application software in one organization communicate with other applications over a network by using a specific set of standard protocols known by their acronyms.
· Simple Object Access Protocol (SOAP)-is a message passing protocol that defines how to send marked up data from one software application to another across a network.
· Web Services Description Language (WSDL)-the characteristics of the logic units that make up specific web services are described using WSDL.
· Universal Description, Discovery, and Integration (UDDI) Specification-the set of protocols that identify locations of Web services and their associated WSDL descriptions.
· Enterprise Resource Planning (ERP)-these software packages are business systems that integrate all facets of a business, including accounting, logistics, manufacturing, marketing, planning, project management, and treasury functions.
· Data Mining-looking for hidden patterns in data; can help businesses find customers with common interests and discover previously unknown relationships amongst the data.
· Customer Relationship Management (CRM) Software-must obtain data from operations software that conducts activities such as sales automation, customer service centre operations, and marketing campaigns.
· Content Management Software-helps companies control the large amounts of text, graphics, and media files that have become a key part of doing business.
· Knowledge Management (KM) Software-the software that has been developed to meet the goal of managing the knowledge within documents.
o Helps to do 4 main things (C PES):
§ (1) Collect and organize information
§ (2) Share the information amongst users
§ (3) Enhance the ability of users to collaborate
§ (4) Preserve the knowledge gained through the use of information so that future users can benefit from the learning of current users.
· Computer Security-is the protection of assets from unauthorized access, use, alternation, or destruction.
· Physical Security-includes tangible protection devices, such as alarms, guards, fireproof doors, security fences, safes or vaults, and bombproof buildings.
· Logical Security-protection of assets using non-physical means.
· Threat-any act or object that poses a danger to computer assets.
· Countermeasure-is the general name for a procedure, either physical or logical, that recognizes, reduces, or eliminates a threat.
· Eavesdropper-in this context is a person or device that can listen in on a copy Internet transmission.
· Crackers/Hackers-people who write programs or manipulate technologies to obtain unauthorized access to computers and networks. White hat hacker and black hat hacker are the differences between good and bad hackers.
· Secrecy-refers to protecting against unauthorized data disclosure and ensuring the authenticity of the data source.
· Integrity-refers to preventing unauthorized data modification.
· Necessity-refers to preventing data delays or denials.
· Security Policy-is a written statement describing which assets to protect and why they are being protected, who is responsible for that protection, and which behaviours are acceptable and which are not.
· Stateless Connection-each transmission of information is independent; that is, no continuous connections (also called an open session) are maintained between any client and server over the Internet.
· Session Cookies-exist until the web client ends the connection or session.
· Persistent Cookies-remain on the clients computer indefinitely.
· Web Bug-is a tiny graphic that a third party web site places on another site’s web page.
· Active Content-refers to programs that are embedded transparently in web pages and that cause action to occur.
· Applet-a small application program.
· Trojan Horse-is a program hidden inside another program or Web page that masks its true purpose.
· Zombie-is a Trojan horse that secretly takes over another computer for the purpose of launching attacks on other computers.
· Javascript-a scripting language developed by Netscape to enable Web page designers to build active content.
· activeX-an activeX control is an object that contains programs and properties that Web designers place on Web pages to perform particular tasks.
· Plug Ins-are programs that enhance the capabilities of browsers and handle web content that a browser cannot handle.
· Multivector Virus-named this because they can enter a computer system through several different ways (vectors).
· Antivirus Software-detects viruses and worms and either deletes them or isolates them on the client computer so they cannot run.
· Digital Certificate or Digital ID-is an attachment to an email message or program embedded in a Web page that verifies that the sender or Web site is who or what it claims to be.
· Steganography-describes the process of hiding information within another piece of information.
· Self Hosting-when companies need to incorporate electronic commerce components; they may opt to run servers in house.
· Shared Hosting-means that the client’s web site is on a server that hosts other web sites simultaneously and is operated by the service provider at its location.
· Dedicated Hosting-the server provider makes a Web server available to the client, but the client does not share the server with other clients of the service provider.
· Collocation Service-the service provider rents a physical space to the client to install its own server hardware.
· Scalable-the best hosting services provide Web server hardware and software combinations that are scalable; which means they can be adapted to meet changing requirements when their clients grow.
All Electronic Commerce solutions must at least provide (CST):
· A catalogue display
· Shopping cart capabilities
· Transaction processing
· Catalogue-is a listing of goods and services.
· Static Catalogue-is a simple list, written in HTML that appears on a Web page or a series of web pages.
· Dynamic Catalogue-stores the information about times in a database, usually on a separate computer that is accessible to the server that is running the descriptions, and a search tool that allows customers to search for an item and determine its availability.
· Interoperability-is making a company’s information systems work together.
o Middleware-a software program that larger companies use to establish the connections between their electronic commerce software and their existing accounting system.
· Application Program/Software-a program that performs a specific function, such as creating invoices, calculating payroll, or processing payments received from customers.
· Application Server-is a computer that takes the request messages received by the Web server and runs application programs that perform some kind of action based on the contents of the request message.
· Database Manager-is software that stores information in a highly structured way.
· Distributed Information Systems-large information systems that store the same data in many different physical locations; and the databases within those systems are called distributed database systems.
· Web Services-a combination of software tools that let application software in one organization communicate with other applications over a network by using a specific set of standard protocols known by their acronyms.
· Simple Object Access Protocol (SOAP)-is a message passing protocol that defines how to send marked up data from one software application to another across a network.
· Web Services Description Language (WSDL)-the characteristics of the logic units that make up specific web services are described using WSDL.
· Universal Description, Discovery, and Integration (UDDI) Specification-the set of protocols that identify locations of Web services and their associated WSDL descriptions.
· Enterprise Resource Planning (ERP)-these software packages are business systems that integrate all facets of a business, including accounting, logistics, manufacturing, marketing, planning, project management, and treasury functions.
· Data Mining-looking for hidden patterns in data; can help businesses find customers with common interests and discover previously unknown relationships amongst the data.
· Customer Relationship Management (CRM) Software-must obtain data from operations software that conducts activities such as sales automation, customer service centre operations, and marketing campaigns.
· Content Management Software-helps companies control the large amounts of text, graphics, and media files that have become a key part of doing business.
· Knowledge Management (KM) Software-the software that has been developed to meet the goal of managing the knowledge within documents.
o Helps to do 4 main things (C PES):
§ (1) Collect and organize information
§ (2) Share the information amongst users
§ (3) Enhance the ability of users to collaborate
§ (4) Preserve the knowledge gained through the use of information so that future users can benefit from the learning of current users.
· Computer Security-is the protection of assets from unauthorized access, use, alternation, or destruction.
· Physical Security-includes tangible protection devices, such as alarms, guards, fireproof doors, security fences, safes or vaults, and bombproof buildings.
· Logical Security-protection of assets using non-physical means.
· Threat-any act or object that poses a danger to computer assets.
· Countermeasure-is the general name for a procedure, either physical or logical, that recognizes, reduces, or eliminates a threat.
· Eavesdropper-in this context is a person or device that can listen in on a copy Internet transmission.
· Crackers/Hackers-people who write programs or manipulate technologies to obtain unauthorized access to computers and networks. White hat hacker and black hat hacker are the differences between good and bad hackers.
· Secrecy-refers to protecting against unauthorized data disclosure and ensuring the authenticity of the data source.
· Integrity-refers to preventing unauthorized data modification.
· Necessity-refers to preventing data delays or denials.
· Security Policy-is a written statement describing which assets to protect and why they are being protected, who is responsible for that protection, and which behaviours are acceptable and which are not.
· Stateless Connection-each transmission of information is independent; that is, no continuous connections (also called an open session) are maintained between any client and server over the Internet.
· Session Cookies-exist until the web client ends the connection or session.
· Persistent Cookies-remain on the clients computer indefinitely.
· Web Bug-is a tiny graphic that a third party web site places on another site’s web page.
· Active Content-refers to programs that are embedded transparently in web pages and that cause action to occur.
· Applet-a small application program.
· Trojan Horse-is a program hidden inside another program or Web page that masks its true purpose.
· Zombie-is a Trojan horse that secretly takes over another computer for the purpose of launching attacks on other computers.
· Javascript-a scripting language developed by Netscape to enable Web page designers to build active content.
· activeX-an activeX control is an object that contains programs and properties that Web designers place on Web pages to perform particular tasks.
· Plug Ins-are programs that enhance the capabilities of browsers and handle web content that a browser cannot handle.
· Multivector Virus-named this because they can enter a computer system through several different ways (vectors).
· Antivirus Software-detects viruses and worms and either deletes them or isolates them on the client computer so they cannot run.
· Digital Certificate or Digital ID-is an attachment to an email message or program embedded in a Web page that verifies that the sender or Web site is who or what it claims to be.
· Steganography-describes the process of hiding information within another piece of information.
Friday, March 7, 2008
Ch. 8 Key Concepts
Ch. 8 Key Concepts
Web Server Hardware and Software
· Dynamic Page-a web page who’s content is shaped by a program in response to user requests.
· Static Page-an unchanging page retrieved from a disk.
· Dynamic Content-is nonstatic information constructed in response to a web client’s request.
· Server-any computer used to provide (or “serve”) files or make programs available to other computers connected to it through a network such as a LAN or a WAN.
· Server Software-the software that a server computer uses to make server files and programs available to other computers.
· Database Server-the server computer on which database management software runs.
· Request Message-the message that a Web client sends to request a file or files from a Web server. A typical request message from a client to a server consists of 3 major parts (HBL).
o Request Line-contains a command, the name of the target resource, and the protocol name and version number.
o Optional Request Headers-can contain information about the types of files that the client will accept in response to this request.
o Optional Entity Body-sometimes used to pass bulk information to the server.
Electronic Mail (E-mail):
· Benefits-quickly transfers information within seconds; can send all sorts of different documents such as word, pictures, movies, worksheets, etc.
· Drawbacks-the amount of time business people spend replying to email
· Virus-a program that attaches itself to another program and can cause damage when the host program is activated.
· Black List Spam Filter-a list that looks for “From” addresses in incoming messages that are known to be spammers.
· White List Spam Filter-examines “From” addresses and compares them to a list of known good sender addresses.
· Packet Internet Groper (PING)-tests the connectivity between two computers connected to the internet.
· File Transfer Protocol (FTP)-is part of the TCP/IP rules that defines the formats used to transfer files between TCP/IP-connected computers.
· Full Privilege Protocol (FTP)-it’s an FTP connection to a computer on which the user has an account.
· Anonymous FTP-allows the user to log on as a guest.
· Link Checker-examines each page on the site and reports any URL’s that are broken, seem broken, or are in some way incorrect.
· Orphan File-is a file on the Web site that is not linked to any page.
· Dead Link-when clicked, displays an error message rather than a Web page.
· Reverse Link Checker-checks on sites with which a company has entered a link exchange program and ensures that link exchange partners are fulfilling their obligation to include a link back to the company’s web site.
· Blade Server-a recent innovation in server computer design is to put small server computers on a single computer board and then install many of those boards into a rack mounted frame.
· Virtual Server or Virtual Host-is a feature that maintains more than one server on one machine.
· Throughput-is the number of HTTP requests that a particular hardware and software combination can process in a unit of time.
· Response Time-is the amount of time a server requires to process one request.
· Server Architectures-the different ways that servers can be connected to each other and to related hardware, such as routers and switches.
· Server Farms-large collections of servers; called farms because servers are often lined up in large rooms, row after row, like crops in a field.
· Centralized Architecture-uses a few very large and fast computers
· Distributed/Decentralized Architecture-using large numbers of less powerful computers and dividing the workload amongst them.
· Load Balancing Switch-is a piece of network hardware that monitors the workloads of servers attached to it and assigns incoming Web traffic to the server that has the most available capacity at that instant in time.
Web Server Hardware and Software
· Dynamic Page-a web page who’s content is shaped by a program in response to user requests.
· Static Page-an unchanging page retrieved from a disk.
· Dynamic Content-is nonstatic information constructed in response to a web client’s request.
· Server-any computer used to provide (or “serve”) files or make programs available to other computers connected to it through a network such as a LAN or a WAN.
· Server Software-the software that a server computer uses to make server files and programs available to other computers.
· Database Server-the server computer on which database management software runs.
· Request Message-the message that a Web client sends to request a file or files from a Web server. A typical request message from a client to a server consists of 3 major parts (HBL).
o Request Line-contains a command, the name of the target resource, and the protocol name and version number.
o Optional Request Headers-can contain information about the types of files that the client will accept in response to this request.
o Optional Entity Body-sometimes used to pass bulk information to the server.
Electronic Mail (E-mail):
· Benefits-quickly transfers information within seconds; can send all sorts of different documents such as word, pictures, movies, worksheets, etc.
· Drawbacks-the amount of time business people spend replying to email
· Virus-a program that attaches itself to another program and can cause damage when the host program is activated.
· Black List Spam Filter-a list that looks for “From” addresses in incoming messages that are known to be spammers.
· White List Spam Filter-examines “From” addresses and compares them to a list of known good sender addresses.
· Packet Internet Groper (PING)-tests the connectivity between two computers connected to the internet.
· File Transfer Protocol (FTP)-is part of the TCP/IP rules that defines the formats used to transfer files between TCP/IP-connected computers.
· Full Privilege Protocol (FTP)-it’s an FTP connection to a computer on which the user has an account.
· Anonymous FTP-allows the user to log on as a guest.
· Link Checker-examines each page on the site and reports any URL’s that are broken, seem broken, or are in some way incorrect.
· Orphan File-is a file on the Web site that is not linked to any page.
· Dead Link-when clicked, displays an error message rather than a Web page.
· Reverse Link Checker-checks on sites with which a company has entered a link exchange program and ensures that link exchange partners are fulfilling their obligation to include a link back to the company’s web site.
· Blade Server-a recent innovation in server computer design is to put small server computers on a single computer board and then install many of those boards into a rack mounted frame.
· Virtual Server or Virtual Host-is a feature that maintains more than one server on one machine.
· Throughput-is the number of HTTP requests that a particular hardware and software combination can process in a unit of time.
· Response Time-is the amount of time a server requires to process one request.
· Server Architectures-the different ways that servers can be connected to each other and to related hardware, such as routers and switches.
· Server Farms-large collections of servers; called farms because servers are often lined up in large rooms, row after row, like crops in a field.
· Centralized Architecture-uses a few very large and fast computers
· Distributed/Decentralized Architecture-using large numbers of less powerful computers and dividing the workload amongst them.
· Load Balancing Switch-is a piece of network hardware that monitors the workloads of servers attached to it and assigns incoming Web traffic to the server that has the most available capacity at that instant in time.
Monday, February 25, 2008
Friday, February 8, 2008
Thursday, February 7, 2008
Chapter 5 Key Concepts
B2B Strategies
Purchasing and Logistics
Procurement:
Identify Vendors
Evaluate Vendors
Select Product
Place orders
Track receipt
Process payment
Direct vs. Indirect Materials:
MRO – maintenance, repair and operations
Anything that goes into creating your final product (Raw Materials, MRO)
Logistics Management:
Requires understanding of accounting processes and logistics
Support Services & KM:
Value added services/support services throughout the entire process (supply chain)
Knowledge Management – of ‘captured’ information learned throughout all support service processes
Electronic Data Interchange
How EDI works:
Paper based transfer
EDI-based transfer
ANSI ASC X12
UN EDIFACT
Direct vs. VAN’s:
Value Added Network creates an audit trail (security)
Intermediary for business documents
Internet EDI
Security Issues associated with the fact that EVERYTHING is on the web
Financial EDI
Exchange of money ACH – automated clearing house intermediary
Supply Chain Management (SCM)
Upstream Management:
What goes into making a product?
Downstream Management:
What goes into getting that product to your customer?
Advantages:
Share customer demand info
Notify or design modifications
Exchange design schematics
Increase processing speed
Reduce handling costs
Reduce human (re-key) error
Reduce and inform of defects
Challenges:
Trust with partners
Being cost-effective
B2B Models and e-Marketplaces
Private Stores
Customer Portals
For individual customers and small businessesIndustry Marketplaces
Consortium Marketplaces
Aggregated demand from groups of businesses
Private Company Marketplaces
Purchasing and Logistics
Procurement:
Identify Vendors
Evaluate Vendors
Select Product
Place orders
Track receipt
Process payment
Direct vs. Indirect Materials:
MRO – maintenance, repair and operations
Anything that goes into creating your final product (Raw Materials, MRO)
Logistics Management:
Requires understanding of accounting processes and logistics
Support Services & KM:
Value added services/support services throughout the entire process (supply chain)
Knowledge Management – of ‘captured’ information learned throughout all support service processes
Electronic Data Interchange
How EDI works:
Paper based transfer
EDI-based transfer
ANSI ASC X12
UN EDIFACT
Direct vs. VAN’s:
Value Added Network creates an audit trail (security)
Intermediary for business documents
Internet EDI
Security Issues associated with the fact that EVERYTHING is on the web
Financial EDI
Exchange of money ACH – automated clearing house intermediary
Supply Chain Management (SCM)
Upstream Management:
What goes into making a product?
Downstream Management:
What goes into getting that product to your customer?
Advantages:
Share customer demand info
Notify or design modifications
Exchange design schematics
Increase processing speed
Reduce handling costs
Reduce human (re-key) error
Reduce and inform of defects
Challenges:
Trust with partners
Being cost-effective
B2B Models and e-Marketplaces
Private Stores
Customer Portals
For individual customers and small businessesIndustry Marketplaces
Consortium Marketplaces
Aggregated demand from groups of businesses
Private Company Marketplaces
Monday, February 4, 2008
Friday, January 25, 2008
Monday, January 21, 2008
Catch Up – Key Concepts Ch. 1
What is E-commerce?
Business activities conducted using electronic data transmissions over the internet and the World Wide Web.
Second Wave E-commerce:
After a major downturn that occurred from the years 2000-2003, electronic commerce began to show signs of new life in which companies were experiencing mass sales growth and even profits through electronic mediums.
E-Business Defined:
The transformation of key business processes through the use of internet technologies. (Another term for Electronic Commerce)
Categories of Electronic Commerce:
B2C – Consumer shopping on the web – Dell Computers
B2B – Transactions conducted between businesses on the web – Wal Mart
C2C – Individuals who buy and sell amongst themselves on the web – Ebay
B2G – Business transactions with government agencies – paying taxes, filing reports
Some Uses for Electronic Commerce:
EFT’s – Electronic Fund Transfers over private communication networks
EDI’s – Electronic Data Interchange transmits computer-readable data in a standard format
Disintermediation – gets rid of the middle man or unnecessary intermediaries. This is very helpful for all categories of E Commerce.
First Wave – Predominantly a US phenomenon with web pages primarily in English on commerce sites.
Second Wave – offers an international scope with sellers doing business in multiple countries and in multiple languages.
Advantages to Electronic Commerce:
- Can increase profits due to lower operating margins
- Advertising reaches a global market
- Can reach customers in geographically scattered regions
- Increases selling and buying opportunities
- Offers wider range of choice for buyers
- Available all the time
- Instant access to detailed information regarding sales or purchases
- Internet can be used as a medium to deliver digital products
- LOWERS COST
Disadvantages to Electronic Commerce:
- Some business process may not be compatible with electronic commerce processes (perishable food, custom jewelery, etc.)
- Compatibility between traditional processes and internet processes creates major difficulty
- Calculation of ROI very difficult for businesses looking to commit to new technologies
- Issues with technology and software that produce cultural and legal obstacles for business conducting electronic business.
Economic Forces Facing Electronic Commerce:
- Transaction Costs: total of all costs that a buyer and seller incur as they gather information and negotiate a purchase-sale transaction
- Markets and Hierarchies: market negotiated transactions
- Reducing Transaction Costs: improving flow of information and increasing coordination of actions
- Network Economic Structures: companies coordinate their strategies, resources, and skill sets by forming long-term, stable relationships with others based on shared purposes.
- Network Effects: as more people begin to use such networks, the value of the network increases to the individual.
International Nature of Electronic Commerce:
- Trust Issues on the Web: businesses on the web must establish trust relationships with customers in order for customers to feel secure when purchasing.
- Language Issues: to do business on a global level, businesses must incorporate multiple languages in their web pages.
- Culture Issues: an important element of business trust as the business must know how a potential customer will act in different cultural situations.
- Culture and Government: some countries’ governments put strict controls on what may or may not be communicated over the web
- Infrastructure Issues: dealing with inadequacies of infrastructures throughout the world.
Business activities conducted using electronic data transmissions over the internet and the World Wide Web.
Second Wave E-commerce:
After a major downturn that occurred from the years 2000-2003, electronic commerce began to show signs of new life in which companies were experiencing mass sales growth and even profits through electronic mediums.
E-Business Defined:
The transformation of key business processes through the use of internet technologies. (Another term for Electronic Commerce)
Categories of Electronic Commerce:
B2C – Consumer shopping on the web – Dell Computers
B2B – Transactions conducted between businesses on the web – Wal Mart
C2C – Individuals who buy and sell amongst themselves on the web – Ebay
B2G – Business transactions with government agencies – paying taxes, filing reports
Some Uses for Electronic Commerce:
EFT’s – Electronic Fund Transfers over private communication networks
EDI’s – Electronic Data Interchange transmits computer-readable data in a standard format
Disintermediation – gets rid of the middle man or unnecessary intermediaries. This is very helpful for all categories of E Commerce.
First Wave – Predominantly a US phenomenon with web pages primarily in English on commerce sites.
Second Wave – offers an international scope with sellers doing business in multiple countries and in multiple languages.
Advantages to Electronic Commerce:
- Can increase profits due to lower operating margins
- Advertising reaches a global market
- Can reach customers in geographically scattered regions
- Increases selling and buying opportunities
- Offers wider range of choice for buyers
- Available all the time
- Instant access to detailed information regarding sales or purchases
- Internet can be used as a medium to deliver digital products
- LOWERS COST
Disadvantages to Electronic Commerce:
- Some business process may not be compatible with electronic commerce processes (perishable food, custom jewelery, etc.)
- Compatibility between traditional processes and internet processes creates major difficulty
- Calculation of ROI very difficult for businesses looking to commit to new technologies
- Issues with technology and software that produce cultural and legal obstacles for business conducting electronic business.
Economic Forces Facing Electronic Commerce:
- Transaction Costs: total of all costs that a buyer and seller incur as they gather information and negotiate a purchase-sale transaction
- Markets and Hierarchies: market negotiated transactions
- Reducing Transaction Costs: improving flow of information and increasing coordination of actions
- Network Economic Structures: companies coordinate their strategies, resources, and skill sets by forming long-term, stable relationships with others based on shared purposes.
- Network Effects: as more people begin to use such networks, the value of the network increases to the individual.
International Nature of Electronic Commerce:
- Trust Issues on the Web: businesses on the web must establish trust relationships with customers in order for customers to feel secure when purchasing.
- Language Issues: to do business on a global level, businesses must incorporate multiple languages in their web pages.
- Culture Issues: an important element of business trust as the business must know how a potential customer will act in different cultural situations.
- Culture and Government: some countries’ governments put strict controls on what may or may not be communicated over the web
- Infrastructure Issues: dealing with inadequacies of infrastructures throughout the world.
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