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What is e-commerce? The use of the internet and the web to transact business. More formally, digitally enabled commercial transactions between and among organization and individuals. What is e-business? The digital enabling of transactions and processes within a firm, involving information systems under the control of the firm. What is the difference between e-commerce and e-business? E-commerce primarily involves transactions that cross firm boundaries E-business primarily involves the application of digital technologies to business processes within the firm. Why study e-commerce? understand the differentiation of technology with more powerful than other understand the digital markets, fundamental and unprecedented shift in commerce. Eight unique features of e-commerce technology Ubiquity Global reach Universal standards Richness Interactivity Information density Personalization and customization Social technology Major types of e-commerce Business-to-consumer (B2C): Online business selling to individual consumers. Ex: eBay Business-to-business (B2B): Online business selling to other business. Consumer-to-consumer (C2C): Consumer selling to other consumers. Peer-to-peer (P2P): Use of peer-to-peer technology, which enables internet users to share files and computer resources directly without having to go through a central Web server, in e-commerce. Ex: bitTorrent. Mobile commerce (M-commerce): use of wireless digital devices to enable transactions on the web. What is business model? A set of planned activities designed to result in a profit in a marketplace. What is business plan? A document that describes a firms business model. What is e-commerce business model? A business model that aims to use and leverage the unique qualities of the internet and the World Wide Web. Eight key element of a business model Value proposition Revenue model Market opportunity Competitive environment Competitive advantage Market strategy Organizational development Management team Major business-to-consumer (B2C) business models Portal E-tailer Content provider Transaction broker Market creator Service provider Community provider Business models in emerging e-commerce areas C2C business models P2P business models M-commerce business models E-commerce enablers How the internet and the web change business: strategy, structure, and process Industry structure Industry value chains Firm value chains Business strategy What is business strategy? The set of plans for achieving superior long-term returns on the capital invested in a firm by offering unique ways to differentiate products, obtain cost advantages, compete globally, or compete in a narrow market or product segment. What is the internet? An interconnected network of thousands of networks and millions of computers linking businesses, educational institutions, government agencies, and individuals. Why consumers choose the online channel? Can shop at any time of day Can research many products at the same times Can find products that are not available in stores Do not need to deal with salespeople Can get better information on web sites than its to find in store employees to help Prices are better online Products are usually in stock.

17. Why internet users major concerns about purchasing online? Uneasy about online credit card use Concerns about privacy of data Shipping charges No need to purchase online Prefer to touch and feel product before purchase Returning a product too difficult Not seen anything online interested in buying. 18. What is marketing? The strategies and actions firms take to establish a relationship a relationship with a consumer and encourage purchases of its products or services. 19. What is internet marketing? Using the web as well as traditional channels to develop a positive, long term relationship with customers, thereby creating a competitive advantage for the firm by allowing it to charge a higher price for products or services than its competitors can charge. 20. The major issues raised by e-commerce can be loosely categorized into four major dimensions Information rights Properly rights Governance Public safety and welfare 21. Understand basic concepts related to privacy Privacy Information privacy Due process 22. The retail industry is composed of many different types of firms. The retail industry divides into nine segments Clothing Durable goods General merchandise Groceries Specialty stores Gasoline and fuel Eating and Drinking Moto Online retail firms 23. There are six key dimensions to e-commerce security Integrity: ensures that information displayed on a web site or sent or received via the internet has not been altered in any way by an unauthorized party. Non-repudiation: ensure that e-commerce participants do not deny (repudiate) their online actions. Authenticity: verifies an individuals or businesss identity. Confidentiality: determines whether information shared online, such as through e-mail communication or an order process, can be viewed by anyone other than their intended recipient. Privacy: deals with the use of information shared during an online transaction consumers want to limit their extent to which their personal information can be divulged to other organizations, while, merchants want to protect such information from falling into the wrong hand. Availability: determines whether a web site is accessible and operational at any given moment. 24. The nine most common and most damaging forms of security threats to ecommerce sites include: Malicious code Unwanted programs (adware, spyware, etc.) Phishing Hacking and cyber-vandalism Spoofing Denial of service attacks Sniffing Insider jobs Poorly designed server and client software. 25. How technology helps protect the security of messages sent over the internet? Message integrity -Non-repudiation Authentication -Confidentiality