E-Commerce

Introduction to Internet

• A network of networks that connects computers across the world.

• It is growing rapidly:– Host computers– Users– Information

• It is a network that follows the TCP/IP protocol (packet switch network).

Internet protocol

– Transmission Control Protocol – handles communications between applications.

• A message is divided into pieces called packets.• Packets are numbered and may be transmitted by different

routes.

– Internet Protocol – handles communications between network addresses.

• A computer on the internet is assigned an unique address, IP address, which consists of 4 numbers (each number is less than 256) separated by period. Exanple, 158.104.1.10

Domain Name System

• Domain:– .com, .net, .org, ..edu, .int, .gov– .info, .biz, .name, .etc.

• Domain names are the familiar, easy-to-remember names for computers on the Internet.– Yahoo.com

• Each domain name correlates to assigned IP address:– Yahoo.com – 66.218.71.102

Organizations that Regulate Internet

• ICANN (Internet Corporation for Assigned Names and Numbers):have responsibilities in Internet Protocol addresses and domain names.

• Domain name registry

Examples of Internet Services

• World Wide Web:– A system of interlinked, hypertext documents

that runs over the Internet. – Web publishing and browsing

• Email• FTP - File Transfer• Telnet

Intranet

• It is a corporate network that functions with Internet technologies, such as browsers, using Internet protocols.

• Major applications:– Corporate/department/individual web pages– Database access– Interactive communication– Document distribution

Extranet

• It is a network that links the intranets of business partners over the Internet by Virtual Private Network.

• Virtual Private Network:– A secure network that uses the Internet as its main

backbone network to connect the intranets of a company’s different locations, or establish extranet links between business partners.

• Improved communications between business partners

E-Commerce

• Buying and selling, and marketing and servicing of products and services, and information via computer networks.

Broad Band & Economy

• According to the study released by Connected Nation, A 7 percent increase in broadband adoption would:– create 2.4 million jobs across the U.S;– save $6.4 billion in vehicle mileage– U.S. residents would save 3.8 billion hours a year by

conducting transactions online, at a cost-savings of $35.2 billion, according to the study.

– http://www.nga.org/Files/pdf/0812BROADBANDCONNECTED.PDF

• U.S. is behind other nations– http://arstechnica.com/tech-policy/news/2009/06/us-20th-in-

broadband-penetration-trails-s-korea-estonia.ars

Retail E-Commerce forecast• U.S.A:http://www.emarketer.com/Reports/All/

Emarketer_2000565.aspx

• Asia:http://www.marketresearch.com/product/display.asp?productid=2657315

• Gas Price Impact: http://www.thestreet.com/story/11105900/1/higher-gas-prices-pressure-on-consumers-is-building.html?puc=tsczacks&cm_ven=tsczacks

• Impact of population density:– Hong Kong: http://blogs.wsj.com/hong-kong/2011/05/05/hong-kong-

internet-economy-lags-behind-south-korea-japan/

• Impact of E-Commerce Security:– http://www.abs-cbnnews.com/business/05/03/11/54-asian-

consumers-still-wary-online-shopping

E-Commerce Models• B2C: Storefront model

– E-tailing (electronic retailing)– Shopping cart, on-line shopping mall

• B2B: – Electronic Data Interchange (EDI)– Electronic Exchange: An electronic forum where manufacturers,

suppliers, and competitors buy and sell goods.• Example: Global Sources and WorldWide Retail Exchange (WWRE) • http://wwre.globalsources.com/

• C2C:– Auction model: e-Bay

• Etc.

Channel Conflict• For example, a manufacturing company may have

a large, established dealer network. The channel conflict exists, when the companies tries to open another channel, such as an online store where customers can purchase goods directly from the company. This may alienate existing dealers, since they may feel that they are bypassed.

• Web presence without online store– Obagi Skin Care

• http://obagiskincare.net/index.php?n=1&id=1

– Anthon Berg Chocolate• http://toms.dk/default.aspx?AreaID=25

E-Payment Methods

• Online credit card transaction:– Card-not-present transaction

• PayPal: https://www.paypal.com/

• Google Checkout:– https://checkout.google.com/support/?hl=en_US

M-Business

• E-Business enabled by wireless communication.– Cell phone, PDA

Location Based Services

• Location-Identification Technologies:– Geocode: Longitude, latitude

• Global Positioning System (GPS)• Cell phone

– Angle of Arrival (AOA)

E-Learning

• Electronic learning or eLearning is a general term used to refer to computer-enhanced learning.

• Many higher education, for-profit institutions, now offer on-line classes.

• The Sloan report, based on a poll of academic leaders, says that students generally appear to be at least as satisfied with their on-line classes as they are with traditional ones.

• Example: GIS online course– http://www.ruraltech.org/video/2005/acrview/index.asp

e-Government

• It refers to government’s use of information technology to exchange information and services with citizens, businesses, and other arms of government.

Increase Traffic to Website

• Search engine optimization:– http://en.wikipedia.org/wiki/Search_engine_optimization

• Tips:– http://www.2createawebsite.com/ebook/TrafficBuildingTips.pdf

• Grow your business with Google– Google AdWords

• Yahoo!'s Open Search Platform– http://tools.search.yahoo.com/newsearch/open.html

Internet Security

• Authenticity: Is the sender/receiver of a message who they claim to be?

• Privacy: Are the contents of a message secret and only known to the sender and receiver?

• Integrity: Have the contents of a message been modified during transmission?

• Nonrepudiation: Can the sender of a message deny that they actually sent the message?

Encryption (Cryptography)

• Plain text: the original message in human-readable form.

• Ciphertext:the encrypted message

• Encryption algorithm: the mathematical formula used to encrypt the plain text.

• Key: the secret key used to encrypt and decrypt a message.

Certificate

• A certificate is a digital document issued by a trusted third-party certificate authority (CA).

• A certificate contains records such as a serial number, user’s name, owner’s public key, name of CA, etc.

• Example of CA: VeriSign, U.S. Postal Service.

Online Transaction Security Protocol

• Secure Sockets Layer (SSL)– Developed by Netscape– SSL implements public key technology using

the RSA algorithm and digital certificate to authenticate the server in a transaction and protect private information.

Tech heavyweights join OpenID Foundation board

• IBM, Google, Microsoft, Yahoo and VeriSign have joined the board of the OpenID Foundation, which puts consumers a little closer to being able to use a single sign-on when they surf the Web.

• It is simpler: People no longer have to remember multiple passwords or re-enter their personal information every time they visit a new site.

• It is also more secure because it protects against certain types of online attacks.

• http://openid.net/

Cookies• Designed to hold information about a user.

– Personalized web page

• Created by a web site and saved on the visitor’s machine.

• It contains:– Web site that sets the cookie.– One or more pieces of data.– Expiration date for this cookie.

• Cookies directory:• Browser sends cookie with the URL when you

visit the site that issued the cookie.