INFORMATION SYSTEMS FOR E-BUSINESS

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1 INFORMATION SYSTEMS FOR E-BUSINESS (Week 10, Monday 10/24/2006) BUS Abdou Illia, Fall LEARNING GOALS Describe the nature of e-business. Describe the basic e-business models. Discuss the technologies behind e- business Discuss the major issues that are created by and affect e-business. 2 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) 3 d h h l k d l 1

2 Webservice vs. E-Business E-Business Native webserver software (HTML, IIS, Apache, etc.) Webservice 3 rd party development software (PHP, CGI, ASP, etc.) E-Business specific software - online catalogs - shopping cards - checkout programs - links to financial organizations 4 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 5 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 6 2

3 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? 7 E-Business models B2B B2C C2C E-Government: G2B, G2C E-Business Issues Copyright Privacy Security Intellectual Property Taxation Trust Jurisdiction E-Business Triangle E-Business Technologies Web design TCP/IP Java Firewalls Electronic Payments, Online Billing Encryption 8 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. 9 3

4 Bead Bar 1 To what extent Bead Bar could be an e-business? Product Processes Delivery Now Physical Physical Physical Extent of e-biz What would the Bead Bar e-business triangle look like? E-Business model E-Business Technologies E-Business issues 10 E-Business Models Business-to-Consumer B2C Business sells products directly to the consumer. Business-to-Business B2B Businesses sell to other businesses. Consumer-to-Consumer C2C Consumers sell directly to other consumers. E-Government Government provides services to businesses-g2b Government provides services to citizens -G2C 11 B2C Models Subscription Consumers pay to have regular access to site. Online storefront Web site acts as intermediary between manufacturer and consumer. E.g. Amazon.com 12 4

5 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 Sports.yahoo.com 13 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 14 The Bead Bar 2 Visit Yahoo!Store at and estimate the cost of a standard B2C Storefront solution for the Bead Bar. Setup fee Monthly fees Transaction fee Domain name included? Web site design included? # account included storage capacity Shipping/Tracking included? Site security provided YES YES YES NO NO NO 15 5

6 B2B Models B2B is much larger than B2C Size estimates range from $543 Billion to $6.8 Trillion Increase 50% per year Information exchanges 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 Virtual hubs match buyers and sellers E-Hospitality 16 C2C Models Online garage sales Online auctions Allows consumers to buy and sell goods with other consumers EBay.com C2C services Sell expertise directly to other customers Keen.com Online communities Allow people with similar interests to come together Chat rooms Discussion boards 17 E-Government Business Models Government-to-citizen (G2C) 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 18 6

7 E-Business Technology Information technology (IT) puts the e in e-business Web site functionality 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 19 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 20 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 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

8 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) TRUSTe Digital divide Security Security Hackers: who attempts to gain unauthorized access to a computer system Spoofing (spoof attacks) Replacing a legitimate web site by another web site Denial of service attacks Type of security threats that could shut down a company's e-business site. Example of Denial of service attackes: Teardrop attacks Ping of Death attacks (oversized packets) 24 8

9 Public/Private Key Encryption protects data being transmission, NOT the data stored on the computers. 25 Summary Questions Malaga Notes 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? 8 (a) 17 (b)

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