describes the process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the internet.
somewhat broader concept than E-Commerce but in addition to the buying and selling of goods and services, this refers to servicing customers, collaborating with business partners, and performing electronic transactions within an organization
Brick and Mortar Organizations, Virtual Organizations, Click and Mortar Organizations
Degree of Digitization
purely physical organization
Brick and Mortar Organization
companies only engaged in E-Commerce
conduct some E-Commerce activities, yet their primary business is carried out in the physical world
Click and Mortar Organization
Business to Business, Business to Consumers, Consumer to Consumer, Business to Employee, Mobile Commerce, E-Government
Types of E-Commerce
both the seller and the buyer are business organizations. Comprises the cast majority to E-Commerce volume
Business to Business E-Commerce
the sellers organizations and the buyers are individuals
Business to Consumer
an individual sells products or services to other individuals. Auctions or classified ads
Consumer to Consumer
an organization uses E-Commerce internally to provide information and services to its employees
Business to Employee
refers to E-Commerce that is conducted entirely in wireless environment
is the use of Internet technology in general and E-Commerce in particular to deliver information and public services to citizens and to business partners and suppliers. An efficient way of conducting business transactions with citizens and businesses within the government themselves. Makes government more effective and efficient especially in delivery of public services.
Online Direct Marketing, Electronic Tendering System, Name Your-Own-Price, Find the Best Price, Affiliate Marketing, Viral Marketing, Group Purchasing, Online Auctions, Product Customization, Electronic Marketplaces, Bartering Online, Deep Discounters, Membership.
E-Commerce Business Models
manufactures or retailers sell directly to customers. Very efficient for digital products an services. Can allow for product or service customization. (Dell.com)
Online Direct Marketing (Business Model)
Businesses request quotes from suppliers. Uses Business to Business with a reverse auction system.
Electronic Tendering System (Business Model)
customers decide how much they are willing to pay. An intermediary tries to match a provider (Priceline.com)
Name-Your-Own-Price (Business Model)
Customers specify a need; an intermediary compares providers and shows the lowest price. Customers must accept the offer in a short time or they may lose the deal. (HotWire)
Find-the-Best-Price (Business Model)
vendors ask partners to place logos or banners on partner sites. If customers click on logo, go to vendors site, and buy, then the vendor pays a commission to the partner.
Affiliate Marketing (Business Model)
Receivers send information about your products to their friends.
Viral Marketing (Business Marketing)
(E-Coop) Small buyers aggregate demand to create a large volume; the group then conducts tendering or negotiating a low price.
Group Purchasing (Business Model)
Companies run auctions of various types on the internet. Very popular to Consumer to Consumer, but gaining ground on the other types of E-Commerce. (eBay)
Online Auctions (Business Model)
sellers solicit bids from many potential buyers. Sellers place items at sites for auction, and buyers bid continuously for them. Highest bidder wins.
one buyer, usually an organization, wants to purchase a product or service. The buyer posts a request for a quotation on its website or on a third party website. Interested suppliers study the request and submit bids electronically. Lowest bidder wins. Most common for large purchases. Government and large corporations use this approach, which may cause large savings.
customers use the internet to self configure products or services. Sellers then price them and fulfill them quickly. (Build to Order). (Jaguar. com)
Product Customization (Business Model)
Transactions are conducted efficiently (more information and exchanges to buyers and sellers, lower transaction’s cost) in electronic marketplaces (public or private).
Electronic Marketplaces (Business Model)
Intermediary administers online exchange or surplus products and or company receives “points” for contribution, which it can use to purchase needed items (bbu.com)
Bartering Online (Business Model)
company offers deep discounts. Appeals to customer who consider price only price in their purchasing decisions. (half.com)
Deep Discounters (Business Model)
only members can use the services provided including the access to certain information, conducting trades, etc. (egreetings.com)
Membership (Business Model)
Electronic Catalogs, Electronic Auctions, E-Storefronts, E-malls, E-Marketplaces
Major E-Commerce Mechanisms
consists of product database, a directory and search capabilities, and a presentation function. Backbone of E-Commerce.
competitive buying and selling process in which prices are determined dynamically by competitive bidding. Generally increase revenues for sellers by broadening the customer base and shortening the cycle time of the auction. Buyers benefit from E-auction because they can bargain for lower prices and no travel .
a website that represents a single store.
electronic mall, a collection of individual stores under on internet address. Closely associated with Business to Consumer electronic commerce.
is a central, virtual market space on the web where many buyers and many sellers can conduct E-Commerce and E-Business activities. Associated with Business to Business.
Electronic Checks, Electronic Cards, Person to Person Payments
Electronic Payment Mechanisms
Primarily used in Business to Business and are similar to regular checks. Customer must establish a checking account with the bank, must use an encrypted check to the seller, seller deposits the check in the bank account, and funds are transferred. These checks carry a signature that can be verified.
There are a variety of E-Cards, electronic credit cards, virtual credit cards, purchasing cards, store value money cards, and smart cards. Allows customers to make payments online. Used primarily for Business to Consumer and shopping by small-to-medium enterprises.
Allow you to use a fixed amount of prepaid money and then spend it necessary. Transportation, App Card, Telephone Card.
Store-Value Money Cards
contain a chip that can store a considerable amount of information. Multipurpose (credit, debit, store-value). Ideal for micropayments.
small payments of a few dollars or less
enables two individuals or an individual and a business, to transfer funds without using a credit card. (PayPal). Create a username and password to transfer funds from the bank to the new account.
1. National and International market are more accessible
2. Lowers costs of processing, distributing, and retrieving information.
3. Provides access to a vast number of products and services 24/7
4. deliver information, services, and products to people in cities, rural areas, and developing countries
Benefits of E-Commerce
1. Lack of universally accepted security standards
2. In less-developed countries telecommunications bandwidth is often insufficient, and web access is expensive
3. Perceptions that E-Commerce is insecure
4.Unresolved legal issues
5. lacks a critical mass of buyers and sellers
Limitations of E-Commerce
one of the most pressing issues with E-Commerce relating to online services. Elimination of intermediaries in electronic commerce.
involves conducting various banking activities from home, at a place of business, or on the road instead of at a physical banking location. Paying bills or applying for a loan.
Cheaper than a full service or discount broker. E-Trade, Ameritrade. Millions of people in the US use computers to trade stocks, bonds, and other financial instruments.
Online Securities Trading
thousands of companies and government agenicies advertise their positions, accept resumes , and take applications via the internet. (monster.com)
The Online Job Market
allow you to purchase airline tickets, reserve hotel rooms, and rent cars. (Expedia.com) “Mistake Fares” is an issue occurring with E-Commerce.
the practice of disseminating information in an attempt to influence buyer-seller transactions. Internet advertising redefines the advertising process making it the rich, dynamic, an interactive. (Interactive, Updated Quickly, and Cheaper)
banners, pop-up ads, pop under ads, spamming, permission marketing, viral marketing
simply electronic billboards. Contains small texts or graphical message to promote a product or vendor. Clickable to its transfers consumer websites.
customized for a target audience
Advantage to Banners
only convey small amounts of information and are often ignored
Disadvantage to Banners
appears in the front of the current window
Pop Up Ads
appears underneath the active window; when the users close the active window. Considered intrusive by users.
Pop Under Ads
the indiscriminate distribution of electronic ads without the permission of the receiver. Becoming worse over time.
asks customers to give their permission to voluntarily accept their online advertising and email. Customers may receive incentives and are often asked to fill out an advertising form that asks about their interests. (clickdough.com)
refers to online word-of-mouth marketing. Have people forward messages to friends, family members, and others.
Channel Conflict, Multi-channeling, Order Fulfillment
Issues with E-Tailing (3)
the alienation of existing distributors when a company decided to sell to customers directly online.
a process in which a company integrates its online and offline channels
a company that offers selling directly to the consumers has to complete the following tasks: find products to be shipped, pack items, arrange for them to be delivered, collect money, and possibly deal with returns and unwanted items
organizations attempt to sell their products or services to other organizations electronically from their own private E-Marketplaces website and or from a third party vendor. Similar to Business to Consumer.
model in which organizations attempt to procure needed products or services from other organizations electronically. Reverse Auction.
are independently owned by a third party, and they connect many sellers and buyers. (Vertical, Horizontal, and Functional)
connect buyers and sellers in a given industry. Frequently owned and managed by consortium (major players in the industry)
connects buyer and sellers across industries. Used primarily for MRO materials.
needed services such as temporary help or extra office space are traded on an “as needed” basis.
fraud on the internet, domain names, cybersquatting, taxes and other fees, copyright
Legal and Ethical Issues Specific to E-Commerce
are assigned by central non-profit organization that check for conflicts and possible infringement problems. Considered legal when a company or person has operated as a legit business under this name for quite some time. (Nissan)
Domain Names Ethical Issue
refers to the practice of registering or using a domain name for the purpose of profiting from the goodwill of the trademark that belongs to someone else. Not illegal, just unethical.
No taxation on E-Business, online retailers may be able to undercut prices of their non-internet competitors.
Taxes and Other Fees
protecting intellectual property rights in the E-Commerce style. This is difficult because there are 200 countries with different copyright laws.
1.small enough to easily carry or wear
2. sufficient to computing power to perform productive tasks.
3. communicate wirelessly with the internet and other devices
Major Advantages of Smartphones
workers can capture and transmit sensitive proprietary information
Disadvantages of Smartphones
transmits signals without wires
microwave, satellite, radio, and infrared
Major types of Wireless Media Channels
high bandwidth and relatively inexpensive
Advantages of Microwave
must have unobstructed view and is susceptible to environmental interferences
Disadvantages of Microwave
High bandwidth and large coverage area
Advantages to Satellite
expensive, requires unobstructed view. propagation delay, requires the use of encryption security
Disadvantages of Satellite
Geostationary Earth Orbit, Middle Earth Orbit, Low Earth Orbit
Three Basic Types of Telecommunication Satellites
Orbit of GEO
# of Satellites for GEO
1.satellites stationary relative to a point on the earth
2. few satellites needed for global coverage
3. transmission delay for . 25 seconds
4. most expensive to build and launch
5. longest orbital life (many years)
Characteristics of GEO
MEO # of Satellites
1. satellites move relative to a point on earth
2. moderate number needed for global coverage
3. requires medium-powered transmitters
4. negligible transmission delay
5. less expensive to build and launch
6. moderate orbital life (6-12 years)
Characteristics of MEO
1. satellites move rapidly relative to the point on the earth
2. large numbers needed for global coverage
3. requires low power transmitters
4. negligible transmission delay
5. least expensive to build and launch
6. shortest orbital life (5 years)
Characteristics of LEO
in many areas this is the only option for internet connections because installing cable is to expensive or physically impossible. Can be disturbed by environmental influences.
Internet Over Satellite (IOS)
a wireless system that utilizes satellites to enable users to determine their position anywhere on earth. Supported by 24 MEO
Global Positioning System (GPS)
1. waves travel normally through wall
2. inexpensive and easy to install
3. transmits at high speeds
Advantages to Radio
1. can create electrical interference problems
2. susceptible to snooping
3. when traveling signal fade and crackles
Disadvantages to Radio
red light that is not visible to the naked eye. Used with remote, DVD players, VCR, etc.
used in short connections
Advantages to Infrared
simplify the act of connecting one device to another. Eliminate wires ad enable users to use them all around the world. 100 ft or less. (Bluetooth, Ultra Wideband, Near-Field Communications)
Short Range Wireless Networks
an industry specification used to create small personal network. Low power consumption
a high bandwidth wireless technology with transmission speeds in excess of mbps. Good for streaming multimedia
has the smallest range of any short range wireless networks; Designed to be embedded in mobile devices.
Wi-Fi, Wireless Local Area Network, Wi-Fi Direct, MiFI, Super Wi-Fi, Wireless Mesh Networks
Medium Range Wireless Networks
medium range technology which is wired local area network but without cables
Wireless Fidelity (Wi-Fi)
1. Provides easy internet access
2. Low Cost
Advantages to Wi-Fi
Disadvantages to Wi-Fi
enables peer to peer communications so devices can connect directly. It allows users to transfer data through the wireless connection. Very compatible.
small, portable, wireless device that provides users with an permanent Wi-Fi hotspot wherever they go
term coined by the US Federal Communication Commission to describe the wireless network proposal that creates long-distance wireless internet. Uses lower frequency white spaces which enable signals to travel further and penetrate walls. Threatens cell phone carriers.
use multiple Wi-Fi access points to create a wide area network that is quite large. Wireless mesh networks in states have been implemented and failed.
Wireless Mesh Networks
first generation. Cellular used analog signals and had low bandwidth
second generation. Uses digital signals primarily for voice communication and provides communication up to kbps
Third generation. Uses digital signal and can transmit voice and data up to 384 kbps when the device is moving at walking pace, 128kpbs when in a moving car, 2 mbps in a fixed location. Supports video, web browsing, and instant messaging.
3G. Used by Verizon and Sprint.
Code Division Multiple Access-CDMA
a wireless broadband cellular radio standard
Evolution Data Optimized Technology-EV-DO
Global System for Mobile Communication-GSM
fourth generation. 100mps for high mobility in cars and trains, 1gbps for pedestrians. This system is expected to provide a secure IP based broadband for all devices.
Worldwide Inoperability for Microwave Access is the name for the IEEE standard 802.16. WiMAX has a range of 31 miles and data transfer up to 75mpbs. Secure offers video and voice.
refers to a real time connection between a mobile device and other computing environment.
2. Broad Reach
5. Localization of Products and Services
Mobility and Broad Reach 5 Value-Added Attributes
can provide information and connection regardless of location
know the consumers physical locations helps the company advertise its products and services. Mobile computing provides the foundation for mobile commerce.
Localization of Products and Services
electronic commerce on the mobile device
1. Widespread availability of mobile devices
2. Declining prices
3. Bandwidth improvement
Drivers of M-Commerce
1. Location Based Applications and Services
2. Financial Services
4. Accessing Information
Mobile Commerce Applications:
location based mobile commerce
1. request nearest gas station
2. receive traffic alerts
3. find friends
Location Based Applications and Services
1. Wireless Electronic
2. Mobile Banking
3. Wireless Bill Payments
4. Mobile Wallet
technologies that enable cardholders to make purchases with a single click from their mobile devices
small purchases that generally cost less than a dollar
most of todays m-commerce is done withng a company
1. accessing information
2. mobile portal
3. voice portal
aggregated and provides content and services for mobile users (NT DoCoMo)
a website with an audio interface. Not technically websites, translates information into a computer generated voice
the wireless transmission and receipt of data gathered from remote sensors. Has numerous computing applications
Ex. Medicine Monitor Patients, Automobile-OnStar, Find My iPhone
the world in which every object has processing power and is connected to a global network either via wireline or wirelessly. Pervasive Computing is invisible that is embedded in the objects around us.
1. Radio Frequency Identification
2. Wireless Sensor Networks
Pervasive and Ubiquitous Computing
provides infrastructure for pervasive computing. Technology that allows manufacturers to attach tags with antennas and computer chips on goods and then tracks their movements through radio signals.
1. RFID Tags
Radio Frequency Identification
developed to replace bar codes. Use tags with embedded microchips that transmit data over a short distance. Programmed with data that is unique to each one.
rely entirely on the readers for their power. Less expensive than active tags. Read up to 20 ft.. Applied to less expensive merchandise.
Passive RFID Tags
Use internal batteries for power and broadcast radio waves to the readers. More expensive that passive tags
Active RFID Tags
networks that are interconnected, battery powered, wireless sensors called motes that are placed in physical environment which collects data. Efficient and Reliable.
Wireless Sensor Networks
1. Rogue Access Points
2. War Driving
4. Radio Frequency Jamming
Four Major Threats to Wireless Security
unauthorized point to a wireless network. Harmless or Evil Twin
Rogue Access Points
the act of locating WLANs while driving of walking around a city. All you need is a Wi-Fi detector and a wirelessly enabled computer. Can obtain free internet and possibly data.
refers to efforts by unauthorized users to access data that are traveling over wireless networks
a person or device that is intentionally or unintentionally interfering with your wireless network transmissions
Radio Frequency Jamming
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