ACC4071 Week02 Ebizz

eBusiness and eCommerce
Chapter 3
2013 Pearson Education, Inc. Publishing as Prentice Hall, AIS, 11/e, by Bodnar/Hopwood
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Learning Objective 1
Describe various eCommerce applications
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eBusiness, eCommerce, and Web Commerce

Electronic Business (eBusiness) refers to the use
of information technologies in any aspect of business. Electronic Commerce (eCommerce) is defined as the use of IT in the exchange of products and services among organizations and individuals. Web Commerce involves using IT in the exchange of products and services among individuals and organizations over the Internet.
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Why Learn About Electronic and Mobile Commerce?

Electronic and mobile commerce:
Have transformed many areas of our lives and
careers One fundamental change has been: The manner in which companies interact with their suppliers, customers, government agencies, and other business partners
Systems, Edition 2013Information Pearson Education, Inc.Tenth Publishing as Prentice Hall, AIS, 11/e, by Bodnar/Hopwood
An Introduction to Electronic Commerce

Electronic commerce:
Conducting business activities electronically
over computer networks Business activities that are strong candidates for conversion to e-commerce: Paper based Time-consuming Inconvenient for customers
Business-to-Business (B2B) E-Commerce

Subset of e-commerce
All the participants are organizations

Useful tool for connecting business partners in a
virtual supply chain to cut resupply times and reduce costs An organization will use both: Buy-side e-commerce to purchase goods and services and Sell-side e-commerce to sell products to its customers
Business-to-Consumer (B2C) E-Commerce

Form of e-commerce in which customers deal
directly with an organization and avoid intermediaries Disintermediation: The elimination of intermediate organizations between the producer and the consumer
Consumer-to-Consumer (C2C) E-Commerce

Subset of e-commerce that involves consumers
selling directly to other consumers Popular sites: Bidzcom, Craigslist, eBid, Kijiji ePier, Ibidfree, Ubid, and Tradus Etsy is a C2C Web site that: Specializes in the buying and selling of handmade and vintage items Facilitates sales worth more than $10 million each month
Consumer-to-Consumer (C2C) E-Commerce (continued)
Multistage Model for E-Commerce (continued)
Information Systems, Tenth 2013 Pearson Education, Inc. Publishing as Prentice Hall, AIS, 11/e, by Bodnar/Hopwood Edition
Describe enterprise architecture and its domains.
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eBusiness and Enterprise Architecture

The enterprise architecture (EA) describes the
joint structure and behavior of the enterprise and its information system. Objectives of an EA:
Alignment of the organizations IT planning and
strategy with companys business goals Management of risks associated with the information system Optimal use of information systems resources Flexibility to adapt to the information system to changing business models and management needs.
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eBusiness and Enterprise Architecture

Enterprise Architecture (EA) involves four
enterprise architectural domains:

1. Business Architecture 2. Data Architecture 3. Applications Architecture 4. Technical Architecture
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Enterprise Architecture
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Business Architecture
Business architecture defines human
resources, processes, and infrastructure that a business needs to accomplish its business strategy.
Business architectures are described in terms of
business domains.
Business domains describe groups of business
functions, business processes, and concepts for which management may assign responsibility. Specific components of the typical business architecture:
Strategies, goals, objectives, general policies, business plan, plan of operations, organization structure Business processes, workflows, events
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Data Architecture
Data architecture defines the needed data, how
it is to be stored, how it is to be processed, how it is to be utilized, and how it integrates with other main architectural domains.
The database is the primary concept in data
architecture. Data model determines how the database is structured, as well as the operations that can be performed on its data. Structured Query Language (SQL) is a technology used to define, access, and manipulate data in a relational database. The relational data model structures data in two-dimensional tables.
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Data Architecture
The Corporate Information Factory
provides a logical architecture for the EA which is represented in a three-part model:

1. 2.
3.
Data acquisition data are acquired from various operations applications. Data management data are integrated into databases and are also transformed and stored in operational databases and data warehouses. Data delivery data are delivered to various data marts.
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Data Architecture
Operational databases store relatively current
transaction data in support of tactical decisions. Data warehouses store enormous volumes of current and historical data for use in research and analysis. Data marts contain subsets of the data contained in the operational database and data warehouse. Data mining warehouse may contain copies of subsets of the data warehouse. Online analytical processing (OLAP) involves complex analysis performed on data warehouses.
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Technical Architecture
Technical architecture describes the structure
and behavior of the IT infrastructure and defines standards, principles, procedures, and best practices to govern the IT architecture. Eight technical domains:
1. 2. 3. 4. 5. 6. 7. 8.
Applications Database Enterprise systems management Information Integration Network and telecommunications Platform Security
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Describe various ePayment applications
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Electronic Payment Systems

Electronic Bill Payment Systems the payer
sends electronic instructions to his or her bank detailing who, when, and amount to pay. Credit and Debit Card Systems the payer transmits a credit or debit card number to a secure server.
Secure server one in which the
communications link is protected by encryption.

Payment Intermediaries serves as an
intermediary between payer and payee (e.g., PayPal).

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Digital Cash (or e-cash or electronic money) is
created when a bank attaches a digital signature to a note promising to pay the bearer some amount of money.
Digital signature is an encrypted, digested
version of a document that can be used to verify the documents authorship and authenticity.
Virtual Cash based on an electronic wallet. Electronic wallet is a computer program that keeps track of the various items of information associated with electronic money.
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Virtual Cash in Electronic Cards: Smart card is a handheld electronic card that is used for payments. Four types:
1.
2.
3. 4.
Memory cards contain microchips that store information and contain hardware that provides PIN access to the cards contents. Possess weak security. Shared-key cards overcome the weakness of memory cards by using encryption for all communications between the card and cash register. Signature-transporting cards allow the user to spend digital cash. Signature-creating cards are capable of generating their own digital signatures.
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Electronic Payment Systems (continued)
Describe eCommerce challenges and issues
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E-Commerce Challenges
Dealing with consumer privacy concerns
Overcoming consumers lack of trust

Overcoming global issues
Dealing with Consumer Privacy Concerns

Identify theft:
Someone using your personally identifying
information without your permission to commit fraud Companies must be prepared to: Make a substantial investment to safeguard their customers privacy or run the risk of losing customers
Overcoming Consumers Lack of Trust

Lack of trust in online sellers:
One of the most frequently cited reasons that
some consumers are not willing to purchase online Online marketers must: Create specific trust-building strategies for their Web sites by analyzing their customers, products, and services
Overcoming Global Issues

These include:
Cultural challenges
Language challenges Time and distance challenges Infrastructure challenges Currency challenges State, regional, and national law challenges
Threats to Electronic and Mobile Commerce

Businesses must ensure that e-commerce and m-
commerce transactions are safe and consumers are protected
Security
Methods to increase security:
Address Verification System

Card Verification Number technique Visas Advanced Authorization process Federal Financial Institutions Examination
Councils Authentication in an Internet Banking Environment guidelines
Theft of Intellectual Property

Intellectual property:
Works of the mind that are distinct somehow
and are owned or created by a single entity Digital rights management (DRM): The use of any of several technologies to enforce policies for controlling access to digital media such as movies, music, and software
Legal Jurisdiction
When conducting e-commerce, sales must not
violate county, state, or country legal jurisdictions Examples: Selling stun guns and similar devices Selling cigarettes or alcohol to underage customers
End of Chapter 3
Some slides from Stair, R. and Reynold,G. (2012). Information Systems (10ed). Cengage Learning.
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eBusiness and eCommerce

Describe various eCommerce applications

eBusiness, eCommerce, and Web Commerce

Why Learn About Electronic and Mobile Commerce?

Have transformed many areas of our lives and

An Introduction to Electronic Commerce

Conducting business activities electronically

Business-to-Business (B2B) E-Commerce

All the participants are organizations

Business-to-Consumer (B2C) E-Commerce

Consumer-to-Consumer (C2C) E-Commerce

Consumer-to-Consumer (C2C) E-Commerce (continued)

Multistage Model for E-Commerce (continued)

Describe enterprise architecture and its domains.

eBusiness and Enterprise Architecture

eBusiness and Enterprise Architecture

enterprise architectural domains:

provides a logical architecture for the EA which is represented in a three-part model:

Describe various ePayment applications

Electronic Payment Systems

communications link is protected by encryption.

intermediary between payer and payee (e.g., PayPal).

Electronic Payment Systems

Electronic Payment Systems

Electronic Payment Systems (continued)

Describe eCommerce challenges and issues

Overcoming consumers lack of trust

Dealing with Consumer Privacy Concerns

Someone using your personally identifying

Overcoming Consumers Lack of Trust

One of the most frequently cited reasons that

Overcoming Global Issues

Threats to Electronic and Mobile Commerce

commerce transactions are safe and consumers are protected

Address Verification System

Councils Authentication in an Internet Banking Environment guidelines

Theft of Intellectual Property

Works of the mind that are distinct somehow

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