Types of E-commerce • Classified by market relationship o Business-to-Consumer (B2C) o Business-to-Business (B2B) o Consumer-to-Consumer (C2C) • Classified by technology used o Peer-to-Peer (P2P) o Mobile commerce (M-commerce) Features of E-Commerce Ubiquity Global reach Universal standards Information richness Interactivity Information density Personalization/customization Social technology Key concepts of the internet • Defined by Federal Networking Commission as network that: o Uses IP addressing o Supports TCP/IP o Provides services to users, in manner similar to telephone system Three important concepts: • Packet switching o Original Message digitized to bits o Bits broken to packets o Each packets get header information and control information, such as how many bits are in the total message and how many packets • TCP/IP communications protocol o IPv4 (32 bit) vs IPv6(128 bit) Examples for each layer: • Client/server computing Internet Network Architecture Internet protocols • HTTP • • E-mail: SMTP, POP3, IMAP
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o Business-to-Consumer (B2C) o...o Affiliate revenue model • Market opportunity • Competitive environment • Competitive advantage • Market strategy • Organizational development
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Types of E-commerce
• Classified by market relationship
o Business-to-Consumer (B2C)
o Business-to-Business (B2B)
o Consumer-to-Consumer (C2C)
• Classified by technology used
o Peer-to-Peer (P2P)
o Mobile commerce (M-commerce)
Features of E-Commerce
Ubiquity
Global reach
Universal standards
Information richness
Interactivity
Information density
Personalization/customization
Social technology
Key concepts of the internet
• Defined by Federal Networking Commission as
network that:
o Uses IP addressing
o Supports TCP/IP
o Provides services to users,
in manner similar to telephone system
Three important concepts:
• Packet switching
o Original Message digitized to bits
o Bits broken to packets
o Each packets get header information and
control information, such as how many
bits are in the total message and how
many packets
• TCP/IP communications protocol
o IPv4 (32 bit) vs IPv6(128 bit)
Examples for each layer:
• Client/server computing
Internet Network Architecture
Internet protocols
• HTTP
•
• E-mail: SMTP, POP3, IMAP
• FTP, Telnet, SSL
Utility programs
• Ping
• Tracert
ISP Services:
• Dial up
• Broadband
Limitations of current Internet
• Bandwidth limitations
• Quality of service limitations
• Network architecture limitations
• Language development limitations
• Wired Internet limitations
Internet and Web features on which the foundations
of e-commerce are built include:
• E-mail
• Instant messaging
• Search engines
• Intelligent agents (bots)
o Search bot
o Shopping bot
o Web monitoring bot
o News bot
o Chatter bot
• Online forums and chat
• Streaming media
• Cookies
Web 2.0 features:
• Social network
• Blog
• RSS
• Podcast
• Wiki
• Music & Video
• VoIP
• IP TV
• Video conferencing & telepresence
• Online software and web services
Main areas where you will need to make decisions:
• Human resources and organizational capabilities
• Hardware/software
• Telecommunications
• Site design
SDLC:
• Systems analysis/planning
• Systems design
• Building the system
• Testing
o Unit testing
o System testing
o Acceptance testing
• Implementation
Two components of system design:
• Logical design
• Physical design
Factors in website optimization:
Components of budget:
• System maintenance
• System development
• Content design and development
• Hardware
• Telecommunications
• Software
E-Commerce Website Architecture
Function of web servers
Ways to scale hardware:
• Vertically
o Increase processing power of individual
components
• Horizontally
o Employ multiple computers to share
workload
• Improve processing architecture
E-Commerce security environment
Dimensions of E-Commerce Security
Three key points of vulnerability in e-commerce
environment:
Client
Server
Communications pipeline (Internet communications
channels)
Common security threats:
• Malicious code
• Bots, botnets
• Unwanted programs
• Browser parasites
• Social engineering
• Phishing
• Hacking
• Cybervandalism
• Data breach
• Credit card fraud/theft
• Spoofing
• Pharming
• Spam/junk Web sites
• Denial of service (DoS) attack
• Distributed denial of service (DDoS) attack
• Sniffing
• Insider jobs
• Poorly designed server and client software
• Social network security
• Mobile platform threats
Tools to achieve site security:
Developing an e-commerce security plan
Business Model:
• Value proposition
• Revenue model
o Advertising revenue model
o Subscription revenue model
o Transaction fee revenue model
o Sales revenue model
o Affiliate revenue model
• Market opportunity
• Competitive environment
• Competitive advantage
• Market strategy
• Organizational development
• Management team
Business models:
• B2C Models:
o Portal
o E-Tailer
o Content provider
o Transaction Broker
o Market creator
o Service provider
o Community provider
• B2B business models:
o Net marketplaces
� E-distributor
� E-procurement
� Exchange
� Industry consortium
o Private industrial network
• Other business models
o Consumer-to-consumer (C2C)
� eBay, Craigslist
o Peer-to-peer (P2P)
� The Pirate Bay, Cloudmark
o M-commerce:
� Extends existing e-commerce
business models to service mobile
workforce, consumers
� Unique features include mobility,
cameras to scan product codes,
GPS
E-commerce changes industry structure by changing:
• Basis of competition among rivals
• Barriers to entry
• Threat of new substitute products
• Strength of suppliers
• Bargaining power of buyers
Effect of Internet in value chain:
• Increases operational efficiency
• Enables product differentiation
• Enables precise coordination of steps in chain
Four generic strategies
• Differentiation
• Cost
• Scope
• Focus
General model of consumer behavior:
Online model:
Stages in consumer decision process:
• Awareness of need
• Search for more information
• Evaluation of alternatives
• Actual purchase decision
• Post-purchase contact with firm
Two most important factors shaping decision to purchase