2004 Prentice Hall, Inc. All rights reserved. 1 Chapter 38 - e-Business & e-Commerce Outline 38.1 Introduction 38.2 e-Business Models 38.2.1 Storefront Model 38.2.2 Shopping-Cart Technology 38.2.3 Auction Model 38.2.4 Portal Model 38.2.5 Name-Your-Price Model 38.2.6 Comparison-Pricing Model 38.2.7 Bartering Model 38.3 Building an e-Business 38.4 e-Marketing 38.4.1 Branding 38.4.2 Marketing Research 38.4.3 e-Mail Marketing
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2004 Prentice Hall, Inc. All rights reserved. 1 Chapter 38 - e-Business & e-Commerce Outline 38.1 Introduction 38.2 e-Business Models 38.2.1 Storefront.
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• Verifies identity of sender and integrity of data
– Encapsulating security payload (ESP)• Encrypts packet to prevent reading while in transit
– Internet Key Exchange (IKE)• Authenticates encryption keys
• VPN shortcomings– Time consuming and complicated to initially set up
– Must be careful who is given access• VPN users essentially the same as LAN users
• Potentially have access to sensitive data
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38.6.8 Security Attacks
• Security of greater concern than ever before– Great variety of attacks to defend against
– Denial of Service (DoS) and Distributed DOS (DDoS)• Flood server or network with data packets
• Prevents any legitimate traffic from passing through
• DDoS occurs when attacker gains control of multiple machines
• Uses them all to coordinate massive attack
– Viruses• Malicious programs
• Attach to or overwrite legitimate programs
• Vary in severity from minor irritations to complete destruction of hard drive data
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38.6.8 Security Attacks
• Security of greater concern than ever before, cont.– Worms
• Similar to viruses
• Able to reproduce and spread over networks
• Generate extreme amount of traffic, slowing networks• CodeRed and ILOVEYOU two infamous worms
• Attackers commonly called hackers or crackers– Traditionally, terms not interchangeable
• Hacker is a skilled programmer and computer user
• Cracker maliciously attacks computers for personal gain
• In practice, hacker has become blanket term for computer criminals
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38.6.8 Security Attacks
• Protecting against attacks– Software exists to mitigate effects of these attacks
– Anti-Virus software• Detects and deletes viruses and worms before they execute
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38.6.9 Network Security
• Network security– Allow authorized users access they need
– Prevent unauthorized users from accessing and damaging network
– Firewall a vital tool for network security• Protects LANs from unauthorized traffic
• Placed between external Internet connection and computers on local network
• Blocks or allows traffic based on rules set by administrator
• Administrator must balance users’ needs for functionality against need for network security
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38.6.9 Network Security
• Network security, cont.– Intrusion detection systems (IDS)
• Detect that an attacker has penetrated the firewall
• Monitor network traffic and log files
• If intrusion detected, immediately closes that connection and alerts administrator through various means
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38.7 Legal Issues
• Internet poses new challenges to lawmakers– File-sharing could redefine copyright laws
– Marketing techniques clash with users’ desire for privacy
– Cyberspace requires rethinking many traditional legal ideas
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38.7.1 Privacy
• U.S. Constitution has no explicit right to privacy– Regardless, privacy is vital concern to many people
– Many sites track activity and personal information• Provides personalization and sometimes better service
• Balanced against desire for marketers to not follow one’s every move or steal valuable information
– Affects company employees as well as customers• Companies install key loggers or keystroke cops
• Monitor what employees do on their system
• Right of company to ensure employees doing their jobs versus employee desire for privacy and free-speech
– Idea of right to privacy still being created in courts
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38.7.2 Defamation
• Defamation– Consists of slander and libel
• Slander is spoken
• Libel is written or spoken in a broader context than slander
• Proving defamation– Plaintiff must:
• Show that statement was written, spoken or broadcast
• Reasonably identify individual responsible
• Show that the statement is indeed defamatory
• Show that the statement was intended to cause harm and known to be false
• Show evidence of injury or actual loss
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38.7.3 Sexually Explicit Speech
• Pornography is protected by First Amendment– Obscenity is not
– Miller test has been deciding factor between the two• Obscenity “appeals to the prurient interest”
• Lacks serious literary, artistic, political or scientific value
– In cyberspace, community standards are different• “Communities” not defined by physical location
• Issues of jurisdiction are unclear
– Problem of what standard to hold Internet to• Broadcast laws restrict content rather than audience
• Print laws use non-content-related means
• Restrict audience rather than content
• Either is possible on the Internet
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38.7.4 Spam
• E-mail marketing– Can be useful or harmful
– Unsolicited mass-mailings, or Spam, strongly frowned on• Many Internet users received hundreds per day
• Content often at best irrelevant and at worst highly offensive
• Possible for children to receive pornography, for example
– Legislation being created to deal with Spam epidemic
– Software to combat spam also exists
– Spammers constantly evolve to circumvent new measures
– One of the toughest usability and privacy issues with Internet today
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38.7.5 Copyrights and Patents
• Copyright– Protection given to author of original piece
• Protects an expression of idea, not idea itself
– Incentive to create by guaranteeing credit for work• Life of author plus 70 years
– Digital technology has made copyright gray area• Fair use vs. piracy
• Copies can be perfect, not cheap imitations
– Movies and MP3-encoded music files hottest area of debate• File-sharing programs lets users download copyrighted works
freely
• Costs distributors and artists money
• Users want to sample music, enjoy lower prices
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38.7.5 Copyrights and Patents
• Patents– Grant creator sole rights to a discovery
– Designed to foster invention and innovation• Guarantees new idea cannot be stolen from inventor
– Possible to patent method of doing business• Must be non-obvious to person skilled in relevant field
– Also contentious area• Some feel patents stifle rather than foster innovation
• 20-year duration may be too long in fast-paced software world
• Some companies file patents solely to profit from infringement lawsuits later on
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38.8 XML and e-Commerce
• Extensible Markup Language (XML)– One parent of XHTML
– Allows users to create customized tags to mark up data• Share data in standard, easily-used format worldwide
• Portable between multiple applications and platforms
– Some industries have standard XML formats already• MathML
• CML
• XMI
• OSD
– Facilitates Electronic Data Interchange (EDI)
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38.9 Introduction to Wireless Technology and m-Business
• Wireless technology– One of technology’s fastest growing sectors
– Brings communications and Internet everywhere
– Wireless devices support increasing number of features
– Convergence beginning to occur• Features of several distinct products combined into one
• PDAs merging with cell phones
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38.10 m-Business
• Mobile business– E-business enabled by wireless technology
– Relatively new, but rapidly growing
– Access critical business information anytime, anywhere• Employees can conduct their duties more easily
• Customers can interact with online businesses in new ways and locations
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38.11 Identifying User Location
• Location-identification technologies– Determine users’ physical location to within yards
– Useful in wireless marketing• Send promotion data when user is near relevant location
– Great benefits to emergency services• Quickly and accurately locate victims
– Made possible by relationships between wireless providers, networks and users
– Multipath errors can cause problems• Signals reflecting off nearby objects
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38.11.1 E911 Act
• Enhanced 911 Act– Standardize 911 service across mobile devices
– Improve response time to calls made from cell phones
– First phase requires cellular providers to disclose phone number of caller as well as location of nearest cell site
– Second phase requires disclosure of location of caller to within 125 meters
– Several benefits• Callers often do not know their exact location
• If call breaks up, emergency responders can still send help
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38.11.2 Location-Identification Technologies
• Methods of locating the user– Triangulation
• Analyze angle of signals from at least two fixed points
– Information presented as geocode• Latitude and longitude
– Different methods have varying degrees of accuracy
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38.11.2 Location-Identification Technologies
Technology Degree of Accuracy Cell of Origin (COO) Least accurate. User could be anywhere in tower’s range.
Meets only Phase I of E911 Act. Angle of Arrival (AOA) Fairly accurate. User is within the overlap of two towers’
cell sites. Used primarily in rural areas where there are fewer towers. Complies with Phase II of E911.
Time Difference of Arrival (TDOA)
Accurate. User’s location is determined by triangulating from three locations. Complies with Phase II of E911. Most effective when towers are close together.
Enhanced Observed Time Difference (E-OTD)
Accurate. User’s location is determined by triangulating from three locations. Complies with Phase II of E911.
Location Pattern Matching Accurate. User’s location is determined by analyzing multipath interference in a given area, making the method more effective for locating a device in an urban area.
Global Positioning Systems (GPS)
Highly accurate. Satellites determine a user’s location anywhere on earth. However, GPS is not as effective when the user is indoors.
Fig. 38.6 Location-identification technologies.
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38.12 Wireless Marketing, Advertising and Promotions