INFORMATION
SYSTEMS FOR
E-BUSINESS
(Week 10, Monday 10/24/2006)
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BUS3500 - Abdou Illia, Fall 2006
LEARNING GOALS
‡ Describe
the nature of e-business.
‡ Describe the basic e-business models.
‡ Discuss the technologies behind ebusiness
‡ Discuss the major issues that are
created by and affect e-business.
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What is E-Business?
‡
Conduct of commercial transactions with
the help of telecommunications systems
‡
E-Business took off in the 1990s with the
rise in popularity of the Internet and
WWW.
‡
Early forms of E-Business
„
Electronic data interchange (EDI)
‡
„
Transfer of commonly used business documents in
electronic form using a standard format
Electronic funds transfer (EFT)
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Webservice vs. E-Business
E-Business
Webservice
Native webserver
software
(HTML, IIS, Apache, etc.)
3rd party development software
(PHP, CGI, ASP, etc.)
E-Business
specific software
- online catalogs
- shopping cards
- checkout programs
- links to financial organizations
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E-Business Benefits
‡
‡
‡
‡
‡
‡
‡
The ability to tap into global marketplace
Business is open 24/7
Increased transactions and search speed
Convenience
The ability to offer customized products easily
Improved customer service
Consumers can become sellers
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E-Business Drawbacks
Security
Privacy
‡ Return on investment (ROI)
‡ Changing consumers’ habits of touch and
feel
‡ Inability to reach consumers who do not
have Internet access
‡
‡
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Who are you? How far you can go digital?
- What products/services?
- How customers find, purchase, pay prod./services?
- How products/services are delivered?
Who are your customers?
E-Business
Triangle
What kind of issues/concerns
you have to deal with?
What technologies would help
implement your E-Business model?
What technologies would
take care of my concerns?
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E-Business models
B2B
B2C
C2C
E-Government: G2B, G2C
E-Business
Triangle
E-Business Issues
E-Business Technologies
Copyright
Privacy
Security
Intellectual Property
Taxation
Trust
Jurisdiction
Web design
TCP/IP
Java
Firewalls
Electronic Payments,
Online Billing
Encryption
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Components of E-Business
‡
‡
Each component could be Physical or Digital.
The extent to which a Business is an e-Business
depends on the extent to which the components
are digital.
Processes: Process of finding the product, purchasing and paying.
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Bead Bar 1
‡
To what extent Bead Bar could be an e-Business?
Now
Product
Extent of e-biz
Physical
Processes Physical
Delivery
‡
Physical
What would the Bead Bar e-Business triangle look
like?
E-Business model
E-Business Technologies
E-Business issues
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E-Business Models
‡
Business-to-Consumer – B2C
‡
Business-to-Business – B2B
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Consumer-to-Consumer – C2C
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E-Government
„
„
„
„
„
Business sells products directly to the consumer.
Businesses sell to other businesses.
Consumers sell directly to other consumers.
Government provides services to businesses-G2B
Government provides services to citizens -G2C
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B2C Models
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Subscription
„
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Consumers pay to have regular access to site.
Online storefront
„
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Web site acts as intermediary between
manufacturer and consumer.
E.g. Amazon.com
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B2C Models (continued)
‡
Bricks-and-clicks
„
Combines a traditional retail outlet with an
online storefront
‡
‡
CircuitCity.com
Advertising
„
Sell advertising space on web site to other
companies
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Sports.yahoo.com
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B2C Models (continued)
‡
Internet presence
„
Use web presence to provide information about
products and services
‡
‡
Exxon.com
Intermediary
„
New types of intermediaries connect buyers
and sellers
‡
E-Trade.com
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The Bead Bar 2
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Visit Yahoo!Store at
http://smallbusiness.yahoo.com/merchant and
estimate the cost of a standard B2C Storefront
solution for the Bead Bar.
Setup fee
Monthly fees
Transaction fee
Domain name included?
‰ YES
‰ NO
Web site design included?
‰ YES
‰ NO
‰ YES
‰ NO
# e-mail account included
E-mail storage capacity
Shipping/Tracking included?
Site security provided
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B2B Models
‡
B2B is much larger than B2C
„
„
‡
Information exchanges
„
„
‡
Size estimates range from $543 Billion to $6.8 Trillion
Increase 50% per year
Exchange business documents over the Internet
EDI via the Internet
Direct sellers
„
Direct sales model, direct to other businesses
‡
‡
‡
Dell Premier pages
Cisco
New intermediaries
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Virtual hubs match buyers and sellers
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E-Hospitality
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C2C Models
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Online garage sales
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Online auctions
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„
‡
C2C services
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„
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Allows consumers to buy and sell goods with other
consumers
EBay.com
Sell expertise directly to other customers
Keen.com
Online communities
„
„
„
Allow people with similar interests to come together
Chat rooms
Discussion boards
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E-Government Business Models
‡
Government-to-citizen (G2C)
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Provide government services to citizens over the
Internet
‡
‡
‡
Vehicle registration renewal
Online voting
Government-to-business (G2B)
„
„
Helps government and business work together more
efficiently
Reduces paperwork and costs for business and
government
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E-Business Technology
Information technology (IT) puts the e in
e-business
‡ Web site functionality
‡
„
„
„
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Speed of loading Web pages
Good search feature so users can find what
they are looking for quickly
Properly used graphics
Simple checkout functions to close the sale
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Electronic Payments
‡
Send financial transaction information securely
over the Internet
‡
Mechanisms for electronic payments
‡
„
Money transfer services – Paypal.com
„
Digital wallet – Microsoft Passport
„
Smart cards
Online billing
„
Customers receive their bills and make payments online
„
WellsFargo.com
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Bead Bar 3
‡
The Chief Financial Officer at Bead Bar needs to
know if there is an E-Payment solution that could
allow the company to send and receive bills
online. Visit Intuit’s web site at www.intuit.com
and provide the CFO with an idea of the cost of
such a service. Note: Search Intuit’s QuickBooks
Online Edition.
Monthly fees (for up to
3 users/administrators)
Main features
‡……………………………………………………..
‡……………………………………………………..
‡……………………………………………………..
‡……………………………………………………..
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E-Business Issues
‡
E-Business raises a number of difficult legal,
social, and ethical issues
„
Protection of intellectual property
Taxation of e-business transactions
Jurisdiction – whose laws apply when a transaction
crosses many international boundaries
Trust (personal info., possible financial loss)
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Digital divide
„
„
„
‡
‡
TRUSTe
Security
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Security
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Hackers: who attempts to gain unauthorized
access to a computer system
Spoofing (spoof attacks)
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Denial of service attacks
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Replacing a legitimate web site by another web site
Type of security threats that could shut down a company's
e-business site. Example of Denial of service attackes:
‡
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Teardrop attacks
Ping of Death attacks (oversized packets)
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Public/Private Key Encryption protects data being transmission, NOT
the data stored on the computers.
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Summary Questions
Malaga
1) What are the three elements of the e-business
triangle?
2) (a) Which business model do online auction sites use?
(b) Which ones governments use?
3) (a) What is a Denial of service attack? What is a
spoof attack? What is a Ping of Death attack?
4) Does Public/Private Key encryption protect the data
stored on a server computer?
Notes
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(a) 17
(b) 18
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