e-commerce and e-business

Introduction to Computer Science2007-2008

E-Commerce andE-Business

4626. Introd to Computer Science

Aims

• Describing the phases a company goes through using Internet for business

• Describing the forms of e-commerce

• Describing the purpose and uses of intranets and extranets

• Describing the use od web sites to support commercial transactions

• Describing the ethical issues of e-commerce


Contents

1. E-Commerce in perspective

2. Intranets: internal business processes

3. Extranets: business alliances

4. B2C: customer-centered web design

5. Technical requirements for e-commerce

6. Ethical issues of e-commerce


• Created in 1994

• Opened in July 1995as a virtual book-stores

• 20 mill. customersin 160 countries

• Survivor of .dot crises

• Powerful recommendation system

Jeff B

ezos. A

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on founder


E-commerce in Perspective

Sharing business information, maintaining business relationships and conducting business transactions through the use od telecomm. networks

Involves reorganising business processes


E-comm Transforms Business

• .com companies (virtual)

• Essential, or at least important for the rest

• Increases speed and efficiency of business processes

• Variants: e-commerce (electronic) i-commerce (internet) m-commerce (mobile)


E-Comm Models

B C

B

C

business-to-business(B2B)

business-to-consumer(B2C)

consumer-to-business(C2B)

consumer-to-consumer(C2C)

Put examples of each case


Intranets

• Basis for B2E: internet supporting internal activties

• Improve comm. inside the company

• Advantages

• cross-platform

• open standards

• minimal user training


Characteristics of a B2E Intranet

• physical tech: LAN with Ethernet

• middleware: software which handles physical comm. (TCP/IP based)

• firewall sw for security

• standard web applications:browsers, e-mail clients, file sharing


How To Use B2E Intranets

• Information access for employees: centralised databases with a common interface

• Collaboration and teamwork: distribute information, remote working groups

• Internal business transactions: increase efficiency and reduces paperwork


ExtranetsBusiness Alliances

• Link intranets of different companies(e-marketplaces)

• Activities between trusted business partners

Functionalities

• place orders

• check stock level

• confirm inoice status

• exchange business information


Extranets with Public Networks

• use public, open comm. lines without additional security mechanisms

• low cost, but low security (and high risk)

• protection: firewalls and logons


Extranets with VPN

• use public, open comm. lines

• an special protocol creates a virtual tunnel across the intranets

• VPNs are becoming the preferred method: economical and secure enough


Extranets with Private Networks

• physically attached lines (leased)

• high cost

• high security levels

• extent of access for external users (only business partners)


B2C

• Customer centered web design

• Often interactive features included

• CRM: customer relationship management

• critical without personal contact

• database with relevant information:preferences, past purchases, communications...


Features of Well Designed Sites

• Speed of transactions

• Large, up-to-date selection (the ‘Long Tail’)

• Ease of use

• Secure transations

• After-sale features

http://www.wired.com/wired/archive/12.10/tail.html

http://www.wired.com/wired/archive/12.10/tail.html


Technical Requirements:Web Server

• Hw&Sw to store pages and handle trafic

• Only large companies have the know-how and the capability to run their own server


Technical Requirements:Hosting Service

• Provide space in their own servers and tools to set up business web pages

• Handle almost all transactions steps (including payments)


Technical Requirements:Software

• Provides commercial services

• Database (catalogue) + front-end

• Capabilities: security, search engine, data analysis


Company PoliciesA Code of Ethics

• Privacy policy of the organisation

• Permission to transmit people data

• How company inform customers about the use of personal data

• Ownership about network posting and communications

• Tracking of user behaviours