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Today’s Agenda Chapter 4 – Internet Marketing Chapter 5 – Online Monetary Transactions Chapter 6 – Legal and Ethical Issue...
Chapter 4, Internet Marketing Outline 4.1 Introduction 4.2  Choosing a Domain Name 4.3  Internet Marketing Research 4.4  W...
Chapter 4, Internet Marketing 4.12.1  META Tags 4.12.2  Search Engine Registration 4.13  Partnerships 4.13.1  Affiliate Pr...
4.1 Introduction <ul><li>Internet   marketing campaigns </li></ul><ul><ul><li>Advertising, promotions, public relations, p...
4.2 Choosing a Domain Name <ul><li>Domain name </li></ul><ul><ul><li>The name used in the URL for a Web site </li></ul></u...
4.3 Internet Marketing Research <ul><li>Traditional: focus groups, interviews, paper and telephone surveys, questionnaires...
4.3 Internet Marketing Research <ul><li>Research current industry trends for e-commerce </li></ul><ul><ul><li>Forrester Re...
4.4 Web Design <ul><li>Low  switching costs </li></ul><ul><ul><li>The ability to select one product over another  </li></u...
4.5 E-mail Marketing <ul><li>Fast, cheap, far-reaching </li></ul><ul><li>Can arrive if recipients are busy or away </li></...
4.5 E-mail Marketing <ul><li>Define the  reach </li></ul><ul><ul><li>The span of people you would like to target, includin...
4.6 Promotions <ul><li>Online and offline e-business  promotions   </li></ul><ul><ul><li>Attract visitors to sites and may...
4.6 Promotions <ul><li>Offer discounts when purchases are made online </li></ul><ul><li>Offer free trials </li></ul><ul><l...
4.7 E-business Advertising <ul><li>Traditional: television, movies, newspapers and magazines  </li></ul><ul><li>Prime-time...
4.7.1 Banner Advertising <ul><li>Banner ads </li></ul><ul><ul><li>Located on Web pages, act like small billboards, usually...
4.7.1 Banner Advertising <ul><li>Inventive color schemes and movement </li></ul><ul><ul><li>Flashing, scrolling text,  pop...
4.7.2 Buying and Selling Advertising on the Web <ul><li>Buy advertising space on sites that receive a large number of hits...
4.7.2 Buying and Selling Advertising on the Web <ul><li>Selling advertising space  </li></ul><ul><ul><li>Provide appropria...
4.8 Webcasting and Interactive Advertising <ul><li>Webcasting   </li></ul><ul><ul><li>Involves using streaming media to br...
4.8 Webcasting and Interactive Advertising <ul><li>Bursting </li></ul><ul><ul><li>There is a substantial build up of conte...
4.9 E-business Public Relations <ul><li>Public relations   (PR)   </li></ul><ul><ul><li>Keeps customers and company curren...
4.9 E-business Public Relations <ul><li>Crisis management </li></ul><ul><ul><li>Another responsibility of PR, is conducted...
4.10 Customer Relationship Management <ul><li>Customer Relationship Management (CRM) system </li></ul><ul><ul><li>The aggr...
4.10.1 Keeping Track of Your Visitors <ul><li>Log file  analysis  </li></ul><ul><ul><li>Log files  consist of data generat...
4.10.1 Feature: WebTrends <ul><li>WebTrends   provides solutions for tracking visitors </li></ul><ul><ul><li>Offers produc...
4.10.1 Feature: WebTrends <ul><li>Offers free-trial versions of many of its products  </li></ul><ul><li>View reports in on...
4.10.2 Customer Registration <ul><li>Customer registration </li></ul><ul><ul><li>Requiring visitors to fill out a form wit...
4.10.3 Personalization <ul><li>Personalization </li></ul><ul><ul><li>The customization of a person’s interactions with a c...
4.10.3 Personalization <ul><li>Personalization versus privacy  </li></ul><ul><ul><li>Ethical implication of personalizatio...
4.11 Business-to-Business Marketing on the Web <ul><li>Emerging key to  business-to-business (B2B) e-commerce  is effectiv...
4.12 Search Engines <ul><li>Search-engine ranking  important to bring consumers to a site </li></ul><ul><ul><li>Method use...
4.12.1 META Tags <ul><li>META tag </li></ul><ul><ul><li>An HTML tag that contains information about a Web page </li></ul><...
4.12.2 Search Engine Registration <ul><li>Submit keywords and a description of business  </li></ul><ul><li>Search engine w...
4.13 Partnerships <ul><li>Partnering </li></ul><ul><ul><li>Forming a strategic union with another company </li></ul></ul><...
4.13.1 Affiliate Programs <ul><li>Affiliate program   </li></ul><ul><ul><li>An agreement between two parties that one will...
Chapter 5, Online Monetary Transactions Outline 5.1  Introduction 5.2  Credit-Card Transactions 5.9  Business-to-Business ...
5.1 Introduction <ul><li>The electronic transfer of funds is key to conducting e-business successfully </li></ul><ul><li>D...
5.2 Credit-Card Transactions <ul><li>Customers fear credit-card fraud </li></ul><ul><ul><li>Credit cards have been develop...
5.2 Credit-Card Transactions <ul><li>Companies enable merchants to accept credit-card payments online.  </li></ul><ul><ul>...
5.9 Business-to-Business (B2B) Transactions <ul><li>Business-to-business (B2B) transactions </li></ul><ul><ul><li>Fastest ...
5.9 Business-to-Business (B2B) Transactions <ul><li>eCredit  provides real-time, credit-transaction capabilities of B2B si...
5.9 Business-to-Business (B2B) Transactions <ul><li>Electronic consolidation and reconciliation of the business transactio...
5.11 Online Banking <ul><li>Internet-only banks  </li></ul><ul><ul><li>Offer convenience and lower rates to their customer...
5.11 Online Banking <ul><li>Claritybank .com    </li></ul><ul><ul><li>Internet-only bank that specializes in loans to new-...
5.11 Wells Fargo Feature <ul><li>Wells Fargo  provides of online banking services </li></ul><ul><ul><li>Services are broke...
5.11 NetBank Feature  <ul><li>Netbank  is the largest bank operating solely on the Internet </li></ul><ul><li>Customers be...
Chapter 6 – Legal and Ethical Issues; Internet Taxation Outline 6.1 Introduction 6.2 Legal Issues: Privacy on the Internet...
Chapter 6 – Legal and Ethical Issues; Internet Taxation 6.4 Social Issues: Online Communities 6.4.1 Online Communities: De...
6.1 Introduction <ul><li>Real space </li></ul><ul><ul><li>Our physical environment consisting of temporal and geographic b...
6.2 Legal Issues: Privacy on the Internet <ul><li>Difficulty of applying traditional law to the Internet </li></ul><ul><li...
6.2.1 Right to Privacy <ul><li>Implicit in the First, Fourth, Ninth and Fourteenth Amendment </li></ul><ul><li>Olmstead vs...
6.2.2 Internet and the Right to Privacy <ul><li>Self-regulated medium </li></ul><ul><ul><li>The Internet industry essentia...
6.2.3 Tracking Devices <ul><li>Tracking devices </li></ul><ul><ul><li>Identifies what activities and products are most pop...
6.2.4 Cookies <ul><li>Cookie   </li></ul><ul><ul><li>A text file stored by a Web site on an individual’s personal computer...
DoubleClick: Marketing with Personal Information <ul><li>Regulation of the Internet could limit a company’s efforts to buy...
6.2.5 Employer and Employee <ul><li>Keystroke cops </li></ul><ul><ul><li>Registers each keystroke before it appears on the...
Michael A. Smyth v. The Pillsbury Company <ul><li>Dismissed as regional operations manager </li></ul><ul><li>Questionable ...
6.2.6 Protecting Yourself as a User <ul><li>Anonimity and pseudonimity </li></ul><ul><ul><li>PrivacyX .com </li></ul></ul>...
6.2.7 Protecting Your Business: Privacy Issues <ul><li>Privacy policy </li></ul><ul><ul><li>The stated policy regarding th...
6.3 Legal Issues: Other Areas of Concern <ul><li>Defamation </li></ul><ul><li>Sexually explicit speech </li></ul><ul><li>C...
6.3.1 Defamation <ul><li>Defamation </li></ul><ul><li>The act of injuring another’s reputation, honor or good name through...
6.3.1 Defamation <ul><li>Good  Samaritan  provision,  Section 230 of the Telecommunications Act </li></ul><ul><ul><li>Prot...
Cubby vs. Compuserve and Stratton Oakmont vs. Prodigy <ul><li>Cubby vs. Compuserve </li></ul><ul><ul><li>Anonymous individ...
6.3.2 Sexually Explicit Speech <ul><li>Miller v. California (1973 ) </li></ul><ul><ul><li>The  Miller Test  identifies the...
United States vs. Thomas <ul><li>Thomas </li></ul><ul><ul><li>Internet business owner in California, owner of pornographic...
6.3.3 Children and the Internet <ul><li>Accessibility to information </li></ul><ul><li>Communications Decency Act of 1996 ...
6.3.4 Alternatives Methods of Regulation <ul><li>Blocking and filtering </li></ul><ul><ul><li>Allows users to select what ...
6.3.5 Intellectual Property: Patents and Copyright <ul><li>Copyright </li></ul><ul><ul><li>The protection given to the aut...
MP3: Raising Copyright Issues <ul><li>MPEG-1 Audio Layer 3  ( MP3) </li></ul><ul><ul><li>A compression method used to subs...
MP3: Raising Copyright Issues <ul><li>MP3.com </li></ul><ul><ul><li>Instant Listening TM   service allows users to immedia...
United States vs. Lamacchia <ul><li>Changed the face of copyright protection  (1994) </li></ul><ul><li>Posting of copyrigh...
6.3.5 Intellectual Property: Patents and Copyrights <ul><li>Digital Millennium Copyright Act of 1998  (DMCA)  </li></ul><u...
6.3.5 Intellectual Property: Patents and Copyright <ul><li>Fair use </li></ul><ul><ul><li>The use of a copyrighted work fo...
6.3.5 Intellectual Property: Patents and Copyright <ul><li>Patent </li></ul><ul><ul><li>Grants the  creator sole rights to...
6.3.6 Trademark and Domain Name Registration <ul><li>Parasite </li></ul><ul><ul><li>Selects a domain name based on common ...
6.3.7 Unsolicited Commercial E-mail (Spam) <ul><li>Cost is primarily incurred by the receiver and the ISP </li></ul><ul><l...
6.3.8 Online Auctions <ul><li>Question of government regulation </li></ul><ul><li>International regulation of auctions </l...
6.3.9 Online Contracts <ul><li>Electronic Signatures in Global and National Commerce Act of 2000  (E-Sign bill)  </li></ul...
6.4 Social Issues: Online Communities <ul><li>The Web allows larger and more diverse groups to communicate, share informat...
6.4.1 Online Communities: Defining the Difference <ul><li>Online users can move about the Web, not limited by g ender, rac...
6.4.2 Online Activism <ul><li>Social and political action on the Web </li></ul><ul><li>Online activism groups </li></ul><u...
6.4.3 Disabilities and the Web <ul><li>Enables disabled individuals to work in many new fields </li></ul><ul><ul><li>Voice...
6.5 Global Issues <ul><li>The Internet poses challenges to a world comprised of different cultures, attitudes, languages, ...
6.5 Global Issues <ul><li>European Union Directive on Data Protection   </li></ul><ul><ul><li>Agreement among its members ...
6.6 Internet Taxation <ul><li>The opposing arguments </li></ul><ul><ul><li>Permanent ban on Internet taxation </li></ul></...
6.6 Internet Taxation <ul><li>Problems with Internet taxation </li></ul><ul><ul><li>The definition of physical presence ( ...
6.6 Internet Taxation <ul><li>Problems with Internet taxation </li></ul><ul><ul><li>To appropriately meet the taxation req...
Chapter 7 – Computer and Network Security Outline 7.1 Introduction 7.2 Ancient Ciphers to Modern Cryptosystems 7.3 Secret-...
Chapter 7 – Computer and Network Security Outline 7.13 Steganography
7.1 Introduction <ul><li>Internet security </li></ul><ul><ul><li>Consumers entering highly confidential information </li><...
7.2 Ancient Ciphers to Modern Cryptosystems <ul><li>Cryptography </li></ul><ul><ul><li>Used to secure information, by encr...
7.2 Ancient Ciphers to Modern Cryptosystems <ul><ul><li>Transposition cipher </li></ul></ul><ul><ul><ul><li>Shifts the ord...
7.3 Secret-key Cryptography <ul><li>Secret-key cryptography </li></ul><ul><ul><li>Same key to encrypt and decrypt message ...
7.3 Secret-key Cryptography <ul><li>Encrypting and decrypting a message using a symmetric key </li></ul>
7.3 Secret-key Cryptography <ul><li>Distributing a session key with a key distribution center </li></ul>
7.4 Public Key Cryptography <ul><li>Public key cryptography </li></ul><ul><ul><li>Asymmetric  – two inversely related keys...
7.4 Public Key Cryptography <ul><li>Encrypting and decrypting a message using public-key cryptography </li></ul>
7.4 Public Key Cryptography <ul><li>Authentication with a public-key algorithm </li></ul>
7.5 Key Agreement Protocols <ul><li>Key agreement protocol </li></ul><ul><ul><li>Process by which parties can exchange key...
7.5 Key Agreement Protocols <ul><li>Creating a digital envelope </li></ul>
7.6 Key Management <ul><li>Key management </li></ul><ul><ul><li>Handling and security of private keys </li></ul></ul><ul><...
7.7 Digital Signatures <ul><li>Digital signature </li></ul><ul><ul><li>Authenticates sender’s identity </li></ul></ul><ul>...
7.8 Public Key Infrastructure, Certificates and Certification Authorities <ul><li>Public Key Infrastructure (PKI) </li></u...
7.9 Cryptoanalysis <ul><li>Crpytoanalysis </li></ul><ul><ul><li>Trying to decrypt ciphertext without knowledge of the decr...
7.10 Security Protocols <ul><li>Transaction security protocols </li></ul><ul><ul><li>Secure Sockets Layer (SSL) </li></ul>...
7.10.1 Secure Sockets layer (SSL) <ul><li>SSL </li></ul><ul><ul><li>Uses public-key technology and digital certificates to...
7.10.2 Secure Electronic Transaction™ (SET™) <ul><li>SET protocol </li></ul><ul><ul><li>Designed to protect e-commerce pay...
7.11 Security Attacks <ul><li>Types of security attacks </li></ul><ul><ul><li>Denial of service attacks </li></ul></ul><ul...
7.11 Security Attacks <ul><li>Types of viruses </li></ul><ul><ul><li>Transient virus </li></ul></ul><ul><ul><ul><li>Attach...
7.11 Security Attacks <ul><li>Anti-virus software </li></ul><ul><ul><li>Reactive  –  goes after already known viruses </li...
7.12 Network Security <ul><li>Network security </li></ul><ul><ul><li>Allow authorized users access </li></ul></ul><ul><ul>...
7.12.1 Firewalls <ul><li>Firewall </li></ul><ul><ul><li>Protects local area network (LAN) from outside intruders </li></ul...
7.12.2 Kerberos <ul><li>Kerberos </li></ul><ul><ul><li>Uses symmetric secret-key cryptography to authenticate users in a n...
Chapter 8 – Hardware, Software and Communications Outline 8.1 Introduction 8.2 Structure of the Internet 8.3 Hardware 8.3....
Chapter 8 – Hardware, Software and Communications Outline 8.6 Building a Web Site 8.6.1 Web-Site Construction Services 8.6...
8.1 Introduction <ul><li>Technological advances </li></ul><ul><ul><li>Computer and communications costs decreasing </li></...
8.2 Structure of the Internet <ul><li>Structure of the Internet </li></ul><ul><ul><li>Network of interconnected host compu...
8.3 Hardware <ul><li>Hardware </li></ul><ul><ul><li>Host computers </li></ul></ul><ul><ul><li>Communications media used to...
8.3.1 Servers <ul><li>Server </li></ul><ul><ul><li>Host that manages network resources </li></ul></ul><ul><ul><li>Fulfills...
8.3.2 Communications Media <ul><li>Communications medium </li></ul><ul><ul><li>Hardware that connects digital equipment to...
8.3.2 Communications Media <ul><ul><li>Opto-chip </li></ul></ul><ul><ul><ul><li>Converts photon into electric current </li...
8.3.3 Storage Area Networks (SANs) <ul><li>Storage Area Network (SAN) </li></ul><ul><ul><li>Provides high-capactity, relia...
8.4 Connecting to the Internet <ul><li>Internet Service Provider (ISP) </li></ul><ul><ul><li>Connect to Internet through p...
8.4.1 Digital Subscriber Lines (DSL) <ul><li>Digital Subscriber Line (DSL) </li></ul><ul><ul><li>High-bandwidth Internet a...
8.4.1 Digital Subscriber Lines (DSL) <ul><li>Integrated Access Device (IAD) </li></ul><ul><ul><li>Provides network connect...
8.4.2 Broadband <ul><li>Broadband </li></ul><ul><ul><li>High-bandwidth </li></ul></ul><ul><ul><li>Always connected, no nee...
8.4.3 Integrated Services Digital Network (ISDN) <ul><li>ISDN </li></ul><ul><ul><li>Speed up to 128 Kbps </li></ul></ul><u...
8.4.4 Wireless <ul><li>Wireless Internet access </li></ul><ul><ul><li>Manage information away from computer </li></ul></ul...
8.4.5 WebTV <ul><li>WebTV </li></ul><ul><ul><li>Low cost Internet connection through TV </li></ul></ul><ul><ul><li>Easy to...
8.5 Software <ul><li>Specialized software for Internet businesses </li></ul><ul><ul><li>Application service providers (ASP...
8.5.1 Application Service Providers (ASPs) <ul><li>ASPs </li></ul><ul><ul><li>Provide customized business software applica...
8.5.2 Operating Systems <ul><li>Operating system </li></ul><ul><ul><li>Software that manages computer’s resources </li></u...
8.5.3 Databases <ul><li>Database </li></ul><ul><ul><li>Integrated collection of data </li></ul></ul><ul><ul><li>Database m...
8.5.3 Databases <ul><li>Example of a relational database table </li></ul>
8.6 Building a Web Site <ul><li>Keys to Web site success </li></ul><ul><ul><li>Visual appearance </li></ul></ul><ul><ul><l...
8.6.1 Web-Site Construction Services <ul><li>Companies offer services and software for Web design </li></ul><ul><ul><li>Fr...
8.6.1 Web-Site Construction Services <ul><ul><li>Commerce One ( www.commerceone.com ) </li></ul></ul><ul><ul><ul><li>Buisn...
8.6.2 Web-Site Hosting <ul><li>Web-hosting </li></ul><ul><ul><li>Offer customers space on a Web server to build their site...
8.6.3 Domain Names <ul><li>Domain names </li></ul><ul><ul><li>Real estate of the Internet </li></ul></ul><ul><ul><li>Domai...
8.7 E-Commerce Consulting <ul><li>E-commerce consulting </li></ul><ul><ul><li>Hiring consulting firms to create and mainta...
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  1. 1. Today’s Agenda Chapter 4 – Internet Marketing Chapter 5 – Online Monetary Transactions Chapter 6 – Legal and Ethical Issues; Internet Taxation Chapter 7 – Computer and Network Security Chapter 8 – Hardware, Software and Communications
  2. 2. Chapter 4, Internet Marketing Outline 4.1 Introduction 4.2 Choosing a Domain Name 4.3 Internet Marketing Research 4.4 Web Design 4.5 E-mail Marketing 4.6 Promotions 4.7 E-business Advertising 4.7.1 Banner Advertising 4.7.2 Buying and Selling Advertising on the Web 4.8 Webcasting and Interactive Advertising 4.9 E-business Public Relations 4.10 Customer Relationship Management (CRM) 4.10.1 Keeping Track of Your Visitors 4.10.2 Customer Registration 4.10.3 Personalization 4.11 Business-to-Business Marketing on the Web 4.12 Search Engines
  3. 3. Chapter 4, Internet Marketing 4.12.1 META Tags 4.12.2 Search Engine Registration 4.13 Partnerships 4.13.1 Affiliate Programs 4.13.2 Creating an Affiliate Program 4.14 Marketing to the World
  4. 4. 4.1 Introduction <ul><li>Internet marketing campaigns </li></ul><ul><ul><li>Advertising, promotions, public relations, partnering, Customer Relationship Management (CRM) systems, affiliate programs and search engine registration </li></ul></ul><ul><li>Target market </li></ul><ul><ul><li>The group of people toward whom it is most profitable to aim your marketing campaign </li></ul></ul><ul><li>Use Internet marketing with traditional marketing to enhance overall corporate marketing strategies </li></ul>
  5. 5. 4.2 Choosing a Domain Name <ul><li>Domain name </li></ul><ul><ul><li>The name used in the URL for a Web site </li></ul></ul><ul><ul><li>Recognizable, easily typed, worldwide interpretations </li></ul></ul><ul><li>Dot-com (.com) Dot-net (.net) and Dot-org (.org) </li></ul><ul><li>Available domain names decreasing </li></ul><ul><ul><li>ICANN (Internet Corporation for Assigned Names and Numbers) considering new suffixes </li></ul></ul><ul><li>Registration </li></ul><ul><ul><li>Domain-it.com , register.com and Network Solutions </li></ul></ul>
  6. 6. 4.3 Internet Marketing Research <ul><li>Traditional: focus groups, interviews, paper and telephone surveys, questionnaires and secondary research </li></ul><ul><ul><li>Findings based on previously conducted investigations </li></ul></ul><ul><li>Internet: faster option for finding and analyzing industry, customer and competitor information </li></ul><ul><ul><li>Relaxed, anonymous setting for focus group discussions and questionnaire distribution </li></ul></ul>
  7. 7. 4.3 Internet Marketing Research <ul><li>Research current industry trends for e-commerce </li></ul><ul><ul><li>Forrester Research , Adknowledge , Jupiter Communications , Media Metrix </li></ul></ul><ul><li>Data collected from Web site provides valuable research </li></ul><ul><li>Technologies exist that can reveal consumer preferences </li></ul>
  8. 8. 4.4 Web Design <ul><li>Low switching costs </li></ul><ul><ul><li>The ability to select one product over another </li></ul></ul><ul><li>Appealing, user friendly, simple to navigate </li></ul><ul><li>Privacy policy </li></ul><ul><ul><li>Details intended uses of consumers’ private information </li></ul></ul><ul><li>Frequently asked questions (FAQs) link </li></ul><ul><ul><li>Links to answers of common questions </li></ul></ul><ul><li>Provide consumers with less complex technology with simpler but equally effective Web pages </li></ul><ul><li>Understanding customer preferences enables the creation of more effective Web sites </li></ul>
  9. 9. 4.5 E-mail Marketing <ul><li>Fast, cheap, far-reaching </li></ul><ul><li>Can arrive if recipients are busy or away </li></ul><ul><li>Receivers can read e-mails at their convenience </li></ul><ul><li>Telemarketing </li></ul><ul><ul><li>Can be more expensive than e-mailing </li></ul></ul><ul><ul><li>Offers benefit of being interactive </li></ul></ul><ul><ul><li>People likely to answer phone whereas can ignore e-mail </li></ul></ul><ul><li>Global businesses send translated e-mails </li></ul><ul><ul><li>Demonstrates they value international consumers </li></ul></ul><ul><ul><li>Logos and AltaVista </li></ul></ul>
  10. 10. 4.5 E-mail Marketing <ul><li>Define the reach </li></ul><ul><ul><li>The span of people you would like to target, including geographic locations and demographic profiles </li></ul></ul><ul><li>Determine the level of personalization </li></ul><ul><ul><li>Personalized direct e-mail targets consumers with specific information and offers by using customer names, offering the right products at the right time and sending promotions </li></ul></ul><ul><li>Response rate </li></ul><ul><ul><li>Shows campaign success or failure by measuring the percentage of responses generated from the target market </li></ul></ul>
  11. 11. 4.6 Promotions <ul><li>Online and offline e-business promotions </li></ul><ul><ul><li>Attract visitors to sites and may influence purchasing </li></ul></ul><ul><li>Frequent-flyer miles </li></ul><ul><ul><li>Offered to consumers for making online purchases </li></ul></ul><ul><ul><li>Increase brand loyalty, offers a reason return visits </li></ul></ul><ul><ul><li>ClickRewards allows customers to accumulate ClickMiles </li></ul></ul><ul><li>Points-based promotion </li></ul><ul><ul><li>Customer performs a prespecified action and receives points to be redeemed for products, services, rebates, discounts, etc. </li></ul></ul><ul><li>Increase brand exposure by giving away items that display company logo, Branders.com </li></ul>
  12. 12. 4.6 Promotions <ul><li>Offer discounts when purchases are made online </li></ul><ul><li>Offer free trials </li></ul><ul><li>Online coupons for online shopping </li></ul><ul><ul><li>Place coupons on sites to bring them to your site </li></ul></ul><ul><ul><li>Sites that advertise coupons include DirectCoupons , Coolsavings .com and valupage .com </li></ul></ul><ul><ul><li>Offer free promotional items: free.com , free2try. com and freeshop .com . </li></ul></ul><ul><li>Online promotional tutorial containing information on ways to promote your site found at Promotion World </li></ul>
  13. 13. 4.7 E-business Advertising <ul><li>Traditional: television, movies, newspapers and magazines </li></ul><ul><li>Prime-time television slots most expensive times to air commercials </li></ul><ul><ul><li>( monster.com advertisement ) </li></ul></ul><ul><li>Establish and continually strengthen branding </li></ul><ul><ul><li>Brand is a symbol or name that distinguishes a company and its products or services from its competitors and should be unique, recognizable and easy to remember </li></ul></ul><ul><li>Publicize URL on direct mailings and business cards </li></ul><ul><li>Online advertising: place links on other Web sites, register with search engines and directories </li></ul>
  14. 14. 4.7.1 Banner Advertising <ul><li>Banner ads </li></ul><ul><ul><li>Located on Web pages, act like small billboards, usually contain graphics and an advertising message </li></ul></ul><ul><ul><li>Benefits include: </li></ul></ul><ul><ul><ul><li>Increased brand recognition, exposure and possible revenue </li></ul></ul></ul><ul><ul><li>Created in different sizes and placed in various positions on a Web site </li></ul></ul><ul><ul><li>Banner advertisements are losing their effectiveness </li></ul></ul><ul><li>Strong branding </li></ul><ul><ul><li>Placing logo on banners, enhancing brand recognition </li></ul></ul>
  15. 15. 4.7.1 Banner Advertising <ul><li>Inventive color schemes and movement </li></ul><ul><ul><li>Flashing, scrolling text, pop-up boxes and color changes </li></ul></ul><ul><ul><ul><li>Pop-up box is a square screen containing an advertisement that appears separate from the screen the user is viewing, pops up randomly or as a result of user actions </li></ul></ul></ul><ul><li>Determine the best position on sites for a banner </li></ul><ul><ul><li>Web sites cluttered with ads annoy visitors </li></ul></ul><ul><li>Space can be more expensive during high traffic </li></ul><ul><li>Exchanging banners with another site </li></ul><ul><li>Adbility and BannerTips </li></ul>
  16. 16. 4.7.2 Buying and Selling Advertising on the Web <ul><li>Buy advertising space on sites that receive a large number of hits and target a similar market </li></ul><ul><li>Selling ad space on a site provides additional income </li></ul><ul><li>Monthly charges for online advertising rarely used today </li></ul><ul><li>CPM ( cost per thousand) </li></ul><ul><ul><li>A designated fee for every one thousand people who view the site on which your advertisement is located </li></ul></ul>
  17. 17. 4.7.2 Buying and Selling Advertising on the Web <ul><li>Selling advertising space </li></ul><ul><ul><li>Provide appropriate contact information on your Web site </li></ul></ul><ul><ul><li>Register with organizations that will sell your space for you </li></ul></ul><ul><ul><ul><li>These companies typically charge a percentage of the revenue you receive from the advertisements placed on your site: ValueClick , DoubleClick , AdSmart and LinkExchange </li></ul></ul></ul>
  18. 18. 4.8 Webcasting and Interactive Advertising <ul><li>Webcasting </li></ul><ul><ul><li>Involves using streaming media to broadcast an event over the Web </li></ul></ul><ul><ul><li>Streaming video simulates television, streaming delivers a flow of data in real time. </li></ul></ul><ul><ul><ul><li>Resource Marketing , Clear Digital , Navisite , Cyber-Logics , www.streamingmedia.com and Macromedia </li></ul></ul></ul><ul><ul><li>Many people have relatively slow Internet access </li></ul></ul><ul><ul><ul><li>The slower the connection, the more disconnected the video appears </li></ul></ul></ul><ul><ul><li>Victoria’s Secret Webcast most popular ever held on Web </li></ul></ul>
  19. 19. 4.8 Webcasting and Interactive Advertising <ul><li>Bursting </li></ul><ul><ul><li>There is a substantial build up of content at the receiving end, causing a video to appear smoother </li></ul></ul><ul><ul><ul><li>Burst.com </li></ul></ul></ul><ul><li>Interactive advertising </li></ul><ul><ul><li>Involves using a combination of rich media (such as audio, video, images and animations) and traditional advertising forms (such as print, television and radio advertisements) to execute an advertising campaign </li></ul></ul><ul><ul><li>Involve consumers in the advertising process </li></ul></ul><ul><ul><ul><li>Nike </li></ul></ul></ul><ul><ul><ul><li>WebRIOT, a game show on MTV </li></ul></ul></ul><ul><ul><ul><li>H2O Design and Lot21 </li></ul></ul></ul>
  20. 20. 4.9 E-business Public Relations <ul><li>Public relations (PR) </li></ul><ul><ul><li>Keeps customers and company current on latest information about products, services and internal and external issues such as company promotions and consumer reactions </li></ul></ul><ul><li>Methods </li></ul><ul><ul><li>Chat sessions </li></ul></ul><ul><ul><li>Bulletin board </li></ul></ul><ul><ul><li>Special events or functions on Web site </li></ul></ul><ul><ul><li>Trade shows and exhibitions </li></ul></ul><ul><ul><li>Press releases (can be delivered over Web, PR Web ) </li></ul></ul><ul><ul><ul><li>Printing and distribution, MediaMap </li></ul></ul></ul><ul><ul><ul><li>Add link that connects to all press releases </li></ul></ul></ul><ul><ul><li>Video clips </li></ul></ul><ul><ul><ul><li>PR Newswire and Business Wire </li></ul></ul></ul>
  21. 21. 4.9 E-business Public Relations <ul><li>Crisis management </li></ul><ul><ul><li>Another responsibility of PR, is conducted in response to problems the company is having </li></ul></ul>
  22. 22. 4.10 Customer Relationship Management <ul><li>Customer Relationship Management (CRM) system </li></ul><ul><ul><li>The aggregate of a company’s customer service solutions </li></ul></ul><ul><ul><li>Can include </li></ul></ul><ul><ul><ul><li>Call handling (the maintenance of out-bound and in-bound calls from customers and service representatives) </li></ul></ul></ul><ul><ul><ul><li>Sales tracking (the tracing and recording of all sales made) </li></ul></ul></ul><ul><ul><ul><li>Transaction support (the technology and personnel used for conducting transactions) as well as other functions </li></ul></ul></ul><ul><li>Tools used to improve solutions include log-file analysis, cookies and the use of infomediaries </li></ul><ul><ul><li>Companies that collect profiles on customers in exchange for the promise of more personalized Web experiences </li></ul></ul>
  23. 23. 4.10.1 Keeping Track of Your Visitors <ul><li>Log file analysis </li></ul><ul><ul><li>Log files consist of data generated by site visits, including each visitor’s location, IP address, time of visit, frequency of visits and many other indicators </li></ul></ul><ul><li>Cookie </li></ul><ul><ul><li>Technology that keeps a profile on each visitor </li></ul></ul><ul><li>Data gathered used to personalize each visitor’s experience, find trends in customer use and demonstrate Web site effectiveness </li></ul>
  24. 24. 4.10.1 Feature: WebTrends <ul><li>WebTrends provides solutions for tracking visitors </li></ul><ul><ul><li>Offers products allowing you to profile site visitors and measure the effectiveness of each of your Web pages </li></ul></ul><ul><li>After downloading a WebTrends product, the user must specify the source of the log files, types of reports and location where data is stored </li></ul><ul><li>The analysis is conducted automatically </li></ul><ul><ul><li>The program can be scheduled to analyze data during non-business hours in order to maximize its efficiency </li></ul></ul><ul><li>Collected information can be used to evaluate e-commerce methods, customer service and Web-site design </li></ul>
  25. 25. 4.10.1 Feature: WebTrends <ul><li>Offers free-trial versions of many of its products </li></ul><ul><li>View reports in one of many applications including Microsoft Word, Excel, HTML and text format </li></ul><ul><li>Will report its progress as it analyzes the data </li></ul><ul><li>View demographic and geographic data, technical analysis of the Web site’s effectiveness and top-referring sites </li></ul><ul><ul><li>Sites that most frequently refer visitors to your site   </li></ul></ul>
  26. 26. 4.10.2 Customer Registration <ul><li>Customer registration </li></ul><ul><ul><li>Requiring visitors to fill out a form with personal information that is then used to create a profile </li></ul></ul><ul><ul><li>Recommended when it will provide a benefit to the consumer </li></ul></ul><ul><li>Require only minimum information </li></ul><ul><li>Give customers an incentive to register </li></ul><ul><ul><li>Free-trial run or a free demonstration to familiarize the user </li></ul></ul><ul><li>After customer registration, send an e-mail including customer usernames </li></ul>
  27. 27. 4.10.3 Personalization <ul><li>Personalization </li></ul><ul><ul><li>The customization of a person’s interactions with a company’s products, services, Web site and employees </li></ul></ul><ul><ul><li>Involving customers in personalization process will make them feel more comfortable and more in control of site visits </li></ul></ul><ul><ul><li>Allaire , Blaze Software , NetGenesis and Personify </li></ul></ul><ul><li>Human-to-human contact </li></ul><ul><ul><li>E-mails that confirm purchases and offer new products </li></ul></ul><ul><ul><li>Calling customers personally </li></ul></ul><ul><ul><li>A link on your site to a live customer service representative, Adeptra , ClickiCall and LivePerson </li></ul></ul>
  28. 28. 4.10.3 Personalization <ul><li>Personalization versus privacy </li></ul><ul><ul><li>Ethical implication of personalization technology </li></ul></ul><ul><ul><li>Some customers are not aware that cookies are stored on their computers </li></ul></ul><ul><ul><li>Marketers must be careful how they use the personal information gained from data research </li></ul></ul><ul><li>Filtering </li></ul><ul><ul><li>Combing through content to determine what the consumer would like to access versus what the consumer does not want to receive </li></ul></ul><ul><ul><li>N2H2 </li></ul></ul>
  29. 29. 4.11 Business-to-Business Marketing on the Web <ul><li>Emerging key to business-to-business (B2B) e-commerce is effective Customer Relationship Management (CRM) </li></ul><ul><ul><li>In the context of B2B e-commerce, CRM includes integrating systems to combine selling, buying, marketing and front-end and back-end operations performed within a company and between companies </li></ul></ul><ul><li>B2B marketing versus B2C marketing </li></ul><ul><ul><li>When you sell your product to another business, you may be selling to someone who is not the direct user of your product </li></ul></ul><ul><li>Industry marketplaces </li></ul><ul><ul><li>Construction.com , W orldwideretailexchange .com </li></ul></ul><ul><ul><li>Connect Inc , Concur Technologies and Ariba </li></ul></ul>
  30. 30. 4.12 Search Engines <ul><li>Search-engine ranking important to bring consumers to a site </li></ul><ul><ul><li>Method used by search engines to rank your Web site will determine how &quot;high&quot; your site appears in search results </li></ul></ul><ul><li>Make sure all Web pages have been published on the Web and linked correctly </li></ul><ul><li>By registering with search engines a company will increase traffic to its site </li></ul>
  31. 31. 4.12.1 META Tags <ul><li>META tag </li></ul><ul><ul><li>An HTML tag that contains information about a Web page </li></ul></ul><ul><ul><li>Does not change how Web page is displayed </li></ul></ul><ul><ul><li>Can contain description of page, keywords and title of page </li></ul></ul><ul><li>Most search engines rank your site by sending out a spider to inspect the site </li></ul><ul><ul><li>The spider reads the META tags, determines the relevance of the Web page’s information and keywords and ranks the site according to that visit’s findings </li></ul></ul><ul><li>Examine competitors’ sites to see what META tags they are using </li></ul><ul><li>Top ten results </li></ul>
  32. 32. 4.12.2 Search Engine Registration <ul><li>Submit keywords and a description of business </li></ul><ul><li>Search engine will add information to its database </li></ul><ul><li>Registering will increase the possibility that a site will make an appearance in search-engine results </li></ul><ul><li>Many search engines do not charge a fee for registering </li></ul><ul><ul><li>AltaVista , Yahoo! , Lycos , Excite , Google and Ask Jeeves </li></ul></ul><ul><ul><ul><li>Ask Jeeves uses natural-language technology that allows people to enter their search subjects in the form of questions </li></ul></ul></ul>
  33. 33. 4.13 Partnerships <ul><li>Partnering </li></ul><ul><ul><li>Forming a strategic union with another company </li></ul></ul><ul><ul><li>legal contracts written to define the relationship precisely and to protect the interests of each company </li></ul></ul><ul><ul><li>E-business partnerships typically require some level of technical conformity </li></ul></ul><ul><li>Provides consumers with complementary services and products </li></ul><ul><li>Exchange technical research or customer information </li></ul><ul><li>Outsourcing part of a company’s operations to partners can help increase operation efficiency </li></ul>
  34. 34. 4.13.1 Affiliate Programs <ul><li>Affiliate program </li></ul><ul><ul><li>An agreement between two parties that one will pay the other a commission based on a designated consumer action </li></ul></ul><ul><ul><li>Establishes new income streams for affiliates </li></ul></ul><ul><li>When a person clicks through the merchant’s site via the link on the affiliate’s site and makes a purchase, a commission on the sale is typically awarded to the affiliate </li></ul><ul><li>Creates a &quot;win-win&quot; situation </li></ul><ul><li>Some programs pay commissions to affiliates for recruiting new affiliates </li></ul>
  35. 35. Chapter 5, Online Monetary Transactions Outline 5.1 Introduction 5.2 Credit-Card Transactions 5.9 Business-to-Business (B2B) Transactions 5.10 E-Billing 5.11 Online Banking
  36. 36. 5.1 Introduction <ul><li>The electronic transfer of funds is key to conducting e-business successfully </li></ul><ul><li>Discussion includes: </li></ul><ul><ul><li>How individuals and organizations perform monetary transactions on the Internet </li></ul></ul><ul><ul><li>Payments by credit card, cash, and check; payments to businesses; peer-to-peer payments; banking and bill paying </li></ul></ul><ul><ul><li>Companies who are developing online payment technology </li></ul></ul><ul><ul><li>Products, software, and services that these companies produce </li></ul></ul>
  37. 37. 5.2 Credit-Card Transactions <ul><li>Customers fear credit-card fraud </li></ul><ul><ul><li>Credit cards have been developed to accommodate online and offline payments </li></ul></ul><ul><ul><ul><li>The Prodigy Internet Mastercard guarantees online fraud protection </li></ul></ul></ul><ul><li>To accept credit-card payments, a merchant must have a merchant account with a bank </li></ul><ul><ul><li>Specialized Internet merchant accounts have been established to handle online credit-card transactions </li></ul></ul><ul><ul><ul><li>Transactions are processed by banks or third-party services </li></ul></ul></ul><ul><li>Traditional merchant accounts accept only POS (point-of-sale) transactions </li></ul><ul><ul><li>Those that occur when you present your credit card at a store </li></ul></ul>
  38. 38. 5.2 Credit-Card Transactions <ul><li>Companies enable merchants to accept credit-card payments online. </li></ul><ul><ul><li>These companies have established business relationships with financial institutions that will accept online credit-card payments for merchant clients. </li></ul></ul><ul><ul><li>CyberCash and iCat </li></ul></ul><ul><ul><li>Trintech </li></ul></ul>
  39. 39. 5.9 Business-to-Business (B2B) Transactions <ul><li>Business-to-business (B2B) transactions </li></ul><ul><ul><li>Fastest growing sector of e-commerce payments </li></ul></ul><ul><ul><li>Payments are often larger than B2C transactions and involve complex business accounting systems </li></ul></ul><ul><li>Paymentech TM </li></ul><ul><ul><li>Payment solution provider for Internet point-of-sale transactions </li></ul></ul><ul><ul><li>Brick-and-mortar and electronic merchants choose from transaction-processing options including debit cards, credit cards, checks and EBT authorization and settlement </li></ul></ul><ul><li>EBT (Electronic Benefits Transfer ) is defined by the USDA as the electronic transfer of government funds to retailers for the benefit of the needy </li></ul>
  40. 40. 5.9 Business-to-Business (B2B) Transactions <ul><li>eCredit provides real-time, credit-transaction capabilities of B2B size </li></ul><ul><li>Clareon facilitates B2B transactions by providing digital payment and settlement services </li></ul><ul><ul><li>Payment is digitally signed, secured and authenticated via digital payment authentication (DPA) </li></ul></ul><ul><ul><li>Compatible with all enterprise resource planning (ERP) systems and can adapt electronic records for companies, banks and each member of a given transaction   </li></ul></ul>
  41. 41. 5.9 Business-to-Business (B2B) Transactions <ul><li>Electronic consolidation and reconciliation of the business transaction process </li></ul><ul><ul><li>Companies can keep track of a transaction from order-to-cash settlement while reducing administrative costs, errors, waste and complexity in the supply chain </li></ul></ul><ul><ul><ul><li>eTime Capital </li></ul></ul></ul><ul><li>Order-fulfillment providers </li></ul><ul><ul><li>Companies attempting to bring supply chain expertise and logistical services to Internet businesses  </li></ul></ul><ul><li>Internet-based electronic B2B transactions will augment, but not replace, traditional Electronic Data Interchange (EDI) systems </li></ul>
  42. 42. 5.11 Online Banking <ul><li>Internet-only banks </li></ul><ul><ul><li>Offer convenience and lower rates to their customers </li></ul></ul><ul><ul><li>Establishing a physical presence </li></ul></ul><ul><li>The hybrid bank model </li></ul><ul><ul><li>Going online has become important for the survival and growth of small local banks </li></ul></ul><ul><ul><li>Smaller banks will usually partner with third-party service providers to make the transition to the Internet </li></ul></ul><ul><li>Glass-Steagle Act </li></ul><ul><ul><li>Prohibited financial institutions from engaging in multiple financial operations </li></ul></ul><ul><ul><li>Was repealed so now banks, brokerages and insurance companies are permitted to offer a wide range of financial services  </li></ul></ul>
  43. 43. 5.11 Online Banking <ul><li>Claritybank .com </li></ul><ul><ul><li>Internet-only bank that specializes in loans to new-economy firms </li></ul></ul><ul><ul><li>Offers a customized portal service and a B2B center </li></ul></ul><ul><li>OneCore .com </li></ul><ul><ul><li>Targets small businesses </li></ul></ul><ul><ul><li>Offers packages to businesses at different stages of growth </li></ul></ul><ul><ul><li>Offers financial-overview services </li></ul></ul><ul><ul><li>Payroll and 401K services, enabling of credit-card processing for would-be merchants and payables streamlining services </li></ul></ul><ul><ul><li>An &quot;electronic financial officer&quot; is available who will answer business financial questions via e-mail </li></ul></ul>
  44. 44. 5.11 Wells Fargo Feature <ul><li>Wells Fargo provides of online banking services </li></ul><ul><ul><li>Services are broken into three main sectors; personal finance, small business and commercial banking </li></ul></ul><ul><li>Offers customers personal banking, free bill-paying and checking-account comparisons </li></ul><ul><li>Planning to use its portal site as a financial aggregator </li></ul><ul><ul><li>allowing people to view information from all of their financial accounts in one place on the Internet </li></ul></ul><ul><li>Establishing specialized resource centers for students, retirees and those purchase cars or homes </li></ul>
  45. 45. 5.11 NetBank Feature <ul><li>Netbank is the largest bank operating solely on the Internet </li></ul><ul><li>Customers benefits </li></ul><ul><ul><li>Can open checking, savings and credit accounts </li></ul></ul><ul><ul><li>Can plan for retirement using IRAs and other investment accounts, conduct online trading, and obtain mortgage, car and business loans over the Web </li></ul></ul><ul><ul><li>Receive a line of credit, free online bill payment and presentment, ATM card and Visa credit card </li></ul></ul>
  46. 46. Chapter 6 – Legal and Ethical Issues; Internet Taxation Outline 6.1 Introduction 6.2 Legal Issues: Privacy on the Internet 6.2.1 Right to Privacy 6.2.2 Internet and the Right to Privacy 6.2.3 Tracking Devices 6.2.4 Cookies 6.2.5 Employer and Employees 6.2.6 Protecting Yourself as a User 6.2.7 Protecting your Business: Privacy Issues 6.3 Legal Issues: Other Areas of Concern 6.3.1 Defamation 6.3.2 Sexually Explicit Speech 6.3.3 Children and the Internet 6.3.5 Intellectual Property: Patents and Copyright 6.3.6 Trademark and Domain Name Registration 6.3.7 Unsolicited Commercial E-mail (Spam) 6.3.8 Online Auctions 6.3.9 Online Contracts
  47. 47. Chapter 6 – Legal and Ethical Issues; Internet Taxation 6.4 Social Issues: Online Communities 6.4.1 Online Communities: Defining the Difference 6.4.2 Online Activism 6.4.3 Disabilities and the Web 6.5 Global Issues 6.6 Internet Taxation
  48. 48. 6.1 Introduction <ul><li>Real space </li></ul><ul><ul><li>Our physical environment consisting of temporal and geographic boundaries </li></ul></ul><ul><li>Cyberspace </li></ul><ul><ul><li>the realm of digital transmission not limited by geography </li></ul></ul>
  49. 49. 6.2 Legal Issues: Privacy on the Internet <ul><li>Difficulty of applying traditional law to the Internet </li></ul><ul><li>Technology and the issue of privacy </li></ul>
  50. 50. 6.2.1 Right to Privacy <ul><li>Implicit in the First, Fourth, Ninth and Fourteenth Amendment </li></ul><ul><li>Olmstead vs. United States </li></ul><ul><ul><li>Telecommunication of alcohol sales during Prohibition era </li></ul></ul><ul><ul><li>New application of the Fourth Amendment </li></ul></ul><ul><li>Translation </li></ul><ul><ul><li>Interpreting the Constitution to protect the greater good </li></ul></ul>
  51. 51. 6.2.2 Internet and the Right to Privacy <ul><li>Self-regulated medium </li></ul><ul><ul><li>The Internet industry essentially governs itself </li></ul></ul><ul><li>Many Internet companies collect users’ personal information </li></ul><ul><ul><li>Privacy advocates argue that these efforts violate individuals’ privacy rights </li></ul></ul><ul><ul><li>Online marketers and advertisers suggest that online companies can better serve their users by recording the likes and dislikes of online consumers, </li></ul></ul><ul><li>Financial Services Modernization Act of 1999 </li></ul><ul><ul><li>Establishes a set of regulations concerning the management of consumer information </li></ul></ul>
  52. 52. 6.2.3 Tracking Devices <ul><li>Tracking devices </li></ul><ul><ul><li>Identifies what activities and products are most popular among consumers </li></ul></ul><ul><li>ID card </li></ul><ul><ul><li>Enables information to be sent to computer from a Web site </li></ul></ul><ul><li>Click-through advertisements </li></ul><ul><ul><li>Consumers can view the service or product by &quot;clicking&quot; on the advertisement </li></ul></ul><ul><li>Web Bugs or clear GIFs </li></ul><ul><ul><li>Embedded in an image on the screen </li></ul></ul>
  53. 53. 6.2.4 Cookies <ul><li>Cookie </li></ul><ul><ul><li>A text file stored by a Web site on an individual’s personal computer that allows a site to track the actions of its visitors </li></ul></ul><ul><ul><li>Record passwords for returning visitors </li></ul></ul><ul><ul><li>Keeps track of shopping-cart materials and register preferences </li></ul></ul><ul><ul><li>Helps businesses by allowing them to address their target market with greater accuracy </li></ul></ul><ul><li>Consumer Profile </li></ul><ul><ul><li>A direct advertising network of sites, combining information about a particular consumer </li></ul></ul>
  54. 54. DoubleClick: Marketing with Personal Information <ul><li>Regulation of the Internet could limit a company’s efforts to buy and sell advertising </li></ul><ul><li>DoubleClick </li></ul><ul><ul><li>Advertising network of over 1,500 sites where banner advertisements for 11,000 of their clients appear </li></ul></ul><ul><li>Abacus Direct Corp </li></ul><ul><ul><li>Names, addresses, telephone numbers, age, gender, income levels and a history of purchases at retail, catalog and online stores </li></ul></ul><ul><li>Digital redlining </li></ul><ul><ul><li>Skewing of an individual’s knowledge of available products by basing the advertisements the user sees on past behavior </li></ul></ul>
  55. 55. 6.2.5 Employer and Employee <ul><li>Keystroke cops </li></ul><ul><ul><li>Registers each keystroke before it appears on the screen </li></ul></ul><ul><li>Company time and company equipment versus the rights of employees </li></ul><ul><li>Determining factors </li></ul><ul><ul><li>Reasonable expectation of privacy </li></ul></ul><ul><ul><li>Legitimate business interests </li></ul></ul><ul><li>Reasons for surveillance </li></ul><ul><ul><li>Slower transmission times </li></ul></ul><ul><ul><li>Harassment suits </li></ul></ul><ul><ul><li>Low productivity </li></ul></ul>
  56. 56. Michael A. Smyth v. The Pillsbury Company <ul><li>Dismissed as regional operations manager </li></ul><ul><li>Questionable material in e-mail </li></ul><ul><li>Pennsylvania law </li></ul><ul><ul><li>“ an employer may discharge an employee with or without cause, at pleasure, unless restrained by some contract&quot; </li></ul></ul><ul><li>Public policy </li></ul><ul><ul><li>Reprimanding an employee called for jury duty </li></ul></ul><ul><ul><li>Denial of employment as a result of previous convictions </li></ul></ul><ul><li>Verdict awarded to Pillsbury </li></ul><ul><ul><li>No reasonable expectation of privacy </li></ul></ul><ul><ul><li>Legitimate business interests </li></ul></ul>
  57. 57. 6.2.6 Protecting Yourself as a User <ul><li>Anonimity and pseudonimity </li></ul><ul><ul><li>PrivacyX .com </li></ul></ul><ul><li>Platform for Privacy Preferences Project (P3P) </li></ul><ul><ul><li>Browser complies in accordance with users’ privacy preferences by allowing them to interact in specific ways </li></ul></ul><ul><li>Privacy services and software </li></ul><ul><ul><li>Junkbusters .com </li></ul></ul><ul><ul><li>PrivacyChoices .org </li></ul></ul><ul><ul><li>Center for Democracy and Technology </li></ul></ul><ul><ul><li>Electronic Frontier Foundation </li></ul></ul><ul><ul><li>Electronic Privacy Information Center </li></ul></ul><ul><ul><li>PrivacyRights . org </li></ul></ul>
  58. 58. 6.2.7 Protecting Your Business: Privacy Issues <ul><li>Privacy policy </li></ul><ul><ul><li>The stated policy regarding the collection and use of visitor’s personal information </li></ul></ul><ul><li>Privacy policy services and software </li></ul><ul><ul><li>PrivacyBot .com </li></ul></ul><ul><ul><li>TRUSTe </li></ul></ul><ul><li>Core Fair Information Practices </li></ul><ul><ul><li>Consumers should be made aware that personal information will be collected </li></ul></ul><ul><ul><li>The consumer should have a say in how this information will be used </li></ul></ul><ul><ul><li>The consumer should have the ability to check the information collected to ensure that it is complete and accurate </li></ul></ul><ul><ul><li>The information collected should be secured </li></ul></ul><ul><ul><li>The Web site should be responsible for seeing that these practices are followed </li></ul></ul>
  59. 59. 6.3 Legal Issues: Other Areas of Concern <ul><li>Defamation </li></ul><ul><li>Sexually explicit speech </li></ul><ul><li>Copyright and patents </li></ul><ul><li>Trademarks </li></ul><ul><li>Unsolicited e-mail </li></ul><ul><li>First Amendment </li></ul><ul><ul><li>&quot;Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble and to petition the Government for a redress of grievances.&quot; </li></ul></ul>
  60. 60. 6.3.1 Defamation <ul><li>Defamation </li></ul><ul><li>The act of injuring another’s reputation, honor or good name through false written or oral communication </li></ul><ul><li>Libel </li></ul><ul><ul><li>Written or are spoken in a context in which they have longevity and pervasiveness that exceed slander </li></ul></ul><ul><li>Slander </li></ul><ul><ul><li>Spoken defamation </li></ul></ul><ul><li>Proving defamation </li></ul><ul><ul><li>The statement must have been published, spoken or broadcast </li></ul></ul><ul><ul><li>There must be identification of the individual(s) through name or reasonable association </li></ul></ul><ul><ul><li>The statement must, in fact, be defamatory </li></ul></ul><ul><ul><li>There must be fault </li></ul></ul><ul><ul><li>there must be evidence of injury </li></ul></ul>
  61. 61. 6.3.1 Defamation <ul><li>Good Samaritan provision, Section 230 of the Telecommunications Act </li></ul><ul><ul><li>Protects ISPs from defamation lawsuits in the ISPs’ attempts to control potentially damaging postings </li></ul></ul><ul><ul><li>“ obscene, lewd, lascivious, filthy, excessively violent, harassing or otherwise objectionable&quot; </li></ul></ul>
  62. 62. Cubby vs. Compuserve and Stratton Oakmont vs. Prodigy <ul><li>Cubby vs. Compuserve </li></ul><ul><ul><li>Anonymous individual used a news service hosted by Compuserve to post an allegedly defamatory statement </li></ul></ul><ul><li>Distributor vs. publisher </li></ul><ul><ul><li>A distributor cannot be held liable for a defamatory statement unless the distributor has knowledge of the content </li></ul></ul><ul><ul><li>Compuserve was a distributor of content </li></ul></ul><ul><li>Stratton Oakmont vs. Prodigy </li></ul><ul><ul><li>Claimed responsibility to remove potentially defamatory or otherwise questionable material </li></ul></ul><ul><ul><li>Prodigy served as a publisher of the content </li></ul></ul>
  63. 63. 6.3.2 Sexually Explicit Speech <ul><li>Miller v. California (1973 ) </li></ul><ul><ul><li>The Miller Test identifies the criteria used to distinguish between obscenity and pornography </li></ul></ul><ul><ul><li>A ppeal to the prurient interest, according to contemporary community standards </li></ul></ul><ul><ul><li>When taken as a whole, lack serious literary, artistic, political or scientific value </li></ul></ul><ul><li>Challenge of community standards in cyberspace </li></ul>
  64. 64. United States vs. Thomas <ul><li>Thomas </li></ul><ul><ul><li>Internet business owner in California, owner of pornographic Web site from which merchandise could be ordered </li></ul></ul><ul><ul><li>Accessible by password </li></ul></ul><ul><ul><li>Acceptable by California community standards </li></ul></ul><ul><ul><li>Sold pornographic material to Tennessee resident (opposing community standards) </li></ul></ul><ul><li>Thomas found guilty </li></ul><ul><li>Non-content related means </li></ul><ul><ul><li>Effort to control the audience rather than controlling the material </li></ul></ul>
  65. 65. 6.3.3 Children and the Internet <ul><li>Accessibility to information </li></ul><ul><li>Communications Decency Act of 1996 (CDA) and Children’s Online Protection Act of 1998 (COPA) </li></ul><ul><ul><li>Designed to restrict pornography on the Internet, particularly in the interest of children </li></ul></ul><ul><ul><li>Overbroad </li></ul></ul><ul><ul><li>“ Patently offensive,” “indecent” and “harmful to minors” </li></ul></ul><ul><li>Chilling effect </li></ul><ul><ul><li>Limiting speech to avoid a lawsuit </li></ul></ul><ul><li>Children’s Online Privacy Protection Act of 2000 (COPPA) </li></ul><ul><ul><li>Prohibits Web sites from collecting personal information from children under the age of 13 </li></ul></ul>
  66. 66. 6.3.4 Alternatives Methods of Regulation <ul><li>Blocking and filtering </li></ul><ul><ul><li>Allows users to select what kinds of information can and cannot be received through their browsers </li></ul></ul><ul><li>Blocking and filtering software and services </li></ul><ul><ul><li>Surfwatch .com </li></ul></ul><ul><ul><li>Cybersitter .com </li></ul></ul><ul><ul><li>NetNanny .com </li></ul></ul><ul><li>Infringement of First Amendment rights </li></ul><ul><li>Parent’s counsel </li></ul><ul><ul><li>CyberAngels .com </li></ul></ul><ul><ul><li>GetNetWise .com </li></ul></ul><ul><ul><li>Parentsoup .com </li></ul></ul>
  67. 67. 6.3.5 Intellectual Property: Patents and Copyright <ul><li>Copyright </li></ul><ul><ul><li>The protection given to the author of an original piece, including “literary, dramatic, musical, artistic and certain other intellectual works” </li></ul></ul><ul><ul><li>Whether the work has been published or not </li></ul></ul><ul><ul><li>Protects only the expression or form of an idea and not the idea itself </li></ul></ul><ul><ul><li>Provides incentive to the creators of original material </li></ul></ul><ul><ul><li>Guaranteed for the life of the author plus seventy years </li></ul></ul>
  68. 68. MP3: Raising Copyright Issues <ul><li>MPEG-1 Audio Layer 3 ( MP3) </li></ul><ul><ul><li>A compression method used to substantially reduce the size of audio files with no significant reduction in sound quality </li></ul></ul><ul><ul><li>Facilitates the exchange of audio files over the Internet </li></ul></ul><ul><li>Napster </li></ul><ul><ul><li>Uses central servers to help users locate MP3 files stored on other Napster users’ hard drives </li></ul></ul><ul><ul><li>Napster members are then able to download these files to their own hard drives </li></ul></ul><ul><ul><li>The files are not stored on Napster’s servers </li></ul></ul><ul><ul><li>Napster.com suggests it cannot control the use (or misuse) of those files, and therefore it is not violating copyright laws </li></ul></ul>
  69. 69. MP3: Raising Copyright Issues <ul><li>MP3.com </li></ul><ul><ul><li>Instant Listening TM service allows users to immediately begin listening to music from CDs they have purchased online </li></ul></ul><ul><ul><li>When a user purchases a CD from a select online retailer, all of the songs from the purchased CDs are added to the user’s account on MyMP3.com </li></ul></ul><ul><ul><li>MP3.com did not have the rights to the music </li></ul></ul>
  70. 70. United States vs. Lamacchia <ul><li>Changed the face of copyright protection (1994) </li></ul><ul><li>Posting of copyrighted material </li></ul><ul><li>Not guilty under the Copyright Act of 1976 </li></ul><ul><ul><li>The violation must have been conducted &quot;willfully and for purposes of commercial advantage or private financial gain” </li></ul></ul><ul><li>LaMachhia did not profit from the copyright violations </li></ul><ul><li>LaMacchia was not convicted for his actions </li></ul>
  71. 71. 6.3.5 Intellectual Property: Patents and Copyrights <ul><li>Digital Millennium Copyright Act of 1998 (DMCA) </li></ul><ul><ul><li>Represents the rights of creative bodies to protect their work as well as the rights of educators and resource providers to receive access to this work </li></ul></ul><ul><ul><li>Makes it illegal to delete or otherwise alter the identifying information of the copyright owner. </li></ul></ul><ul><ul><li>Prevents the circumvention of protection mechanisms and/or the sale of such circumvention mechanisms </li></ul></ul><ul><ul><li>Protects the fair use of copyrighted material </li></ul></ul>
  72. 72. 6.3.5 Intellectual Property: Patents and Copyright <ul><li>Fair use </li></ul><ul><ul><li>The use of a copyrighted work for education, research, criticism, etc. </li></ul></ul><ul><ul><li>The purpose of the copyrighted work is examined </li></ul></ul><ul><ul><li>The nature of the copyrighted work is taken into account </li></ul></ul><ul><ul><li>The amount of the material that has been reproduced is reviewed </li></ul></ul><ul><ul><li>The effect is taken into consideration </li></ul></ul>
  73. 73. 6.3.5 Intellectual Property: Patents and Copyright <ul><li>Patent </li></ul><ul><ul><li>Grants the creator sole rights to the use of a new discovery </li></ul></ul><ul><ul><li>Protection for 20 years </li></ul></ul><ul><li>Opposing the length of a patent </li></ul><ul><ul><li>Does not foster the creation of new material </li></ul></ul><ul><li>Includes “methods of doing business” since 1998 </li></ul><ul><ul><li>Idea must be new and not obvious to a skilled person </li></ul></ul><ul><li>Amazon’s 1-Click patent </li></ul><ul><ul><li>September, 1999 </li></ul></ul><ul><ul><li>Huge advantage over competitors, as 65% of shopping carts are abandoned before purchase is complete </li></ul></ul><ul><ul><li>Refused barnesandnoble.com Express Lane </li></ul></ul>
  74. 74. 6.3.6 Trademark and Domain Name Registration <ul><li>Parasite </li></ul><ul><ul><li>Selects a domain name based on common typos made when entering a popular domain name </li></ul></ul><ul><li>Cybersquatter </li></ul><ul><ul><li>Buys an assortment of domain names that are obvious representations of a brick-and-mortar company </li></ul></ul><ul><li>Anticybersquatting Consumer Protection Act of 1999 (ACPA) </li></ul><ul><ul><li>Protects traditional trademarking in cyberspace </li></ul></ul><ul><ul><li>Protects trademarks belonging to a person or entity other than the person or entity registering or using the domain name </li></ul></ul><ul><ul><li>Persons registering domain names are protected from prosecution if they have a legitimate claim to the domain name </li></ul></ul><ul><ul><li>Domain names cannot be registered with the intention of resale to the rightful trademark owner </li></ul></ul>
  75. 75. 6.3.7 Unsolicited Commercial E-mail (Spam) <ul><li>Cost is primarily incurred by the receiver and the ISP </li></ul><ul><li>Organizations distributing spam </li></ul><ul><ul><li>Maintain anonymity and receivers cannot request to be taken off the organization’s mailing list </li></ul></ul><ul><ul><li>Present themselves as a legitimate company and damage the legitimate companies reputation </li></ul></ul><ul><li>Unsolicited Electronic Mail Act </li></ul><ul><ul><li>Mandates that the nature of the e-mail be made clear </li></ul></ul><ul><ul><li>In effect, this would require online marketers to know the policy of every ISP they encounter on the Web </li></ul></ul>
  76. 76. 6.3.8 Online Auctions <ul><li>Question of government regulation </li></ul><ul><li>International regulation of auctions </li></ul><ul><li>Copyright infringement and auction aggregation services </li></ul><ul><li>The Collections of Information Antipiracy Act (CIAA) </li></ul><ul><ul><li>Makes it easier to prosecute any group which takes listings from one organization and, in doing so, harms the original business </li></ul></ul><ul><li>Shill bidding </li></ul><ul><ul><li>Sellers bid for their own items in order to increase the bid price </li></ul></ul>
  77. 77. 6.3.9 Online Contracts <ul><li>Electronic Signatures in Global and National Commerce Act of 2000 (E-Sign bill) </li></ul><ul><ul><li>Designed to promote online commerce by legitimizing online contractual agreements. </li></ul></ul><ul><ul><li>Digital agreements will receive the same level of validity as hard-copy counterparts </li></ul></ul><ul><ul><li>Allows cooperating parties to establish their own contracts </li></ul></ul>
  78. 78. 6.4 Social Issues: Online Communities <ul><li>The Web allows larger and more diverse groups to communicate, share information and exchange opinions </li></ul><ul><li>Web sites are being created to accommodate a variety of individuals with different backgrounds, interests and ideas </li></ul>
  79. 79. 6.4.1 Online Communities: Defining the Difference <ul><li>Online users can move about the Web, not limited by g ender, race, creed, age and sexual orientation </li></ul><ul><li>Virtual communities </li></ul><ul><ul><li>Oxygen.com </li></ul></ul><ul><ul><li>Pleiades-net.com </li></ul></ul><ul><ul><li>PlanetOut .com </li></ul></ul><ul><ul><li>YouthPride .com </li></ul></ul><ul><ul><li>Match.com </li></ul></ul><ul><ul><li>Singles.com </li></ul></ul>
  80. 80. 6.4.2 Online Activism <ul><li>Social and political action on the Web </li></ul><ul><li>Online activism groups </li></ul><ul><ul><li>Institute for Global Communications </li></ul></ul><ul><ul><li>Student Environmental Action Coalition </li></ul></ul><ul><ul><li>Amnesty International </li></ul></ul><ul><ul><li>Peace Corps </li></ul></ul>
  81. 81. 6.4.3 Disabilities and the Web <ul><li>Enables disabled individuals to work in many new fields </li></ul><ul><ul><li>Voice activation, visual enhancers and auditory aids </li></ul></ul><ul><li>Americans with Disabilities Act (ADA) </li></ul><ul><ul><li>Protects the employment rights of Americans with disabilities </li></ul></ul><ul><li>Legal requirements of meeting the needs of people with disabilities </li></ul><ul><ul><li>Sites that are heavily laden with graphic images might have to simplify (or modify) their appearance </li></ul></ul>
  82. 82. 6.5 Global Issues <ul><li>The Internet poses challenges to a world comprised of different cultures, attitudes, languages, codes of conduct and government authorities </li></ul><ul><li>Various reactions to privacy, personalization and copyright </li></ul><ul><li>Felix Somm </li></ul><ul><ul><li>Held accountable under German law for providing German subscribers access to sexually explicit material </li></ul></ul><ul><ul><li>Compuserve was an internationally operating ISP, material posted in the United States was also accessible to Compuserve’s international members </li></ul></ul>
  83. 83. 6.5 Global Issues <ul><li>European Union Directive on Data Protection </li></ul><ul><ul><li>Agreement among its members on the regulations that apply to information exchange </li></ul></ul><ul><ul><li>Mandates that personal information be kept current and used in a lawful manner for its designated purpose </li></ul></ul><ul><ul><li>Compiled list of American Web sites that meet the criteria designated by the Directive </li></ul></ul><ul><ul><li>In the case of a violation of the directive, the case will be tried in the United States </li></ul></ul>
  84. 84. 6.6 Internet Taxation <ul><li>The opposing arguments </li></ul><ul><ul><li>Permanent ban on Internet taxation </li></ul></ul><ul><ul><li>Fair taxation of Internet sales </li></ul></ul><ul><li>Taxation methods </li></ul><ul><ul><li>If both a vendor and a consumer are located in the same state </li></ul></ul><ul><ul><li>If the vendor and the consumer are not located in the same state, then the sale is subject to a use tax </li></ul></ul><ul><ul><li>If the vendor has a physical presence, or nexus, then it is required to collect the tax; otherwise the vendor must assess the tax and pay it directly to the state </li></ul></ul>
  85. 85. 6.6 Internet Taxation <ul><li>Problems with Internet taxation </li></ul><ul><ul><li>The definition of physical presence ( location of the ISP, the location of the server or the location of the home page ) </li></ul></ul><ul><ul><li>States vary according to what transactions are subject to taxation </li></ul></ul><ul><ul><li>Sales tax revenues are the largest single source of a state’s revenue and are used to fund government-subsidized programs, including the fire department, the police and the public education systems </li></ul></ul><ul><ul><li>State and local governments further argue that removing taxation methods from their jurisdiction infringes upon state sovereignty, an element of the checks-and-balances system maintained by the United States Constitution </li></ul></ul>
  86. 86. 6.6 Internet Taxation <ul><li>Problems with Internet taxation </li></ul><ul><ul><li>To appropriately meet the taxation requirements of all parties in online transactions, e-businesses would be required to know and understand all these methods </li></ul></ul><ul><li>Internet Tax Commission </li></ul><ul><ul><li>Reviewed the issue of Internet taxation </li></ul></ul><ul><ul><li>Revision of state and local taxes to make taxing a feasible process for Internet businesses </li></ul></ul><ul><ul><li>Establish clearer definitions on the meaning of &quot;physical presence“ </li></ul></ul><ul><ul><li>Define universal taxation exemptions </li></ul></ul>
  87. 87. Chapter 7 – Computer and Network Security Outline 7.1 Introduction 7.2 Ancient Ciphers to Modern Cryptosystems 7.3 Secret-key Cryptography 7.4 Public Key Cryptography 7.5 Key Agreement Protocols 7.6 Key Management 7.7 Digital Signatures 7.8 Public Key Infrastructure, Certificates and Certification Authoritities 7.9 Cryptoanalysis 7.10 Security Protocols 7.10.1 Secure Sockets Layer (SSL) 7.10.2 Secure Electronic Transaction™ (SET™) 7.11 Security Attacks 7.12 Network Security 7.12.1 Firewalls 7.12.2 Kerberos 7.12.3 Biometrics
  88. 88. Chapter 7 – Computer and Network Security Outline 7.13 Steganography
  89. 89. 7.1 Introduction <ul><li>Internet security </li></ul><ul><ul><li>Consumers entering highly confidential information </li></ul></ul><ul><ul><li>Number of security attacks increasing </li></ul></ul><ul><ul><li>Four requirements of a secure transaction </li></ul></ul><ul><ul><ul><li>Privacy – information not read by third party </li></ul></ul></ul><ul><ul><ul><li>Integrity – information not compromised or altered </li></ul></ul></ul><ul><ul><ul><li>Authentication – sender and receiver prove identities </li></ul></ul></ul><ul><ul><ul><li>Non-repudiation – legally prove message was sent and received </li></ul></ul></ul><ul><ul><li>Availability </li></ul></ul><ul><ul><ul><li>Computer systems continually accessible </li></ul></ul></ul>
  90. 90. 7.2 Ancient Ciphers to Modern Cryptosystems <ul><li>Cryptography </li></ul><ul><ul><li>Used to secure information, by encrypting it </li></ul></ul><ul><ul><li>Transforms data by using a key </li></ul></ul><ul><ul><ul><li>Key is a string of digits that acts as a password and makes the data incomprehensible to those without it </li></ul></ul></ul><ul><ul><li>Plaintext – unencrypted data </li></ul></ul><ul><ul><li>Cipher-text – encrypted data </li></ul></ul><ul><ul><li>Cipher of cryptosystem – technique for encrypting messages </li></ul></ul><ul><li>Ciphers </li></ul><ul><ul><li>Substitution cipher </li></ul></ul><ul><ul><ul><li>Every occurrence of a given letter is replaced by a different letter </li></ul></ul></ul>
  91. 91. 7.2 Ancient Ciphers to Modern Cryptosystems <ul><ul><li>Transposition cipher </li></ul></ul><ul><ul><ul><li>Shifts the ordering of letters </li></ul></ul></ul><ul><ul><li>Modern cryptosystems </li></ul></ul><ul><ul><ul><li>Digital, based on bits not the alphabet </li></ul></ul></ul><ul><ul><ul><li>Key length – length of string used to encrypt and decrypt </li></ul></ul></ul>
  92. 92. 7.3 Secret-key Cryptography <ul><li>Secret-key cryptography </li></ul><ul><ul><li>Same key to encrypt and decrypt message </li></ul></ul><ul><ul><li>Sender sends message and key to receiver </li></ul></ul><ul><li>Problems with secret-key cryptography </li></ul><ul><ul><li>Key must be transmitted to receiver </li></ul></ul><ul><ul><li>Different key for every receiver </li></ul></ul><ul><ul><li>Key distribution centers used to reduce these problems </li></ul></ul><ul><ul><ul><li>Generates session key and sends it to sender and receiver encrypted with the unique key </li></ul></ul></ul><ul><li>Encryption algorithms </li></ul><ul><ul><li>Dunn Encryption Standard (DES), Triple DES, Advanced Encryption Standard (AES) </li></ul></ul>
  93. 93. 7.3 Secret-key Cryptography <ul><li>Encrypting and decrypting a message using a symmetric key </li></ul>
  94. 94. 7.3 Secret-key Cryptography <ul><li>Distributing a session key with a key distribution center </li></ul>
  95. 95. 7.4 Public Key Cryptography <ul><li>Public key cryptography </li></ul><ul><ul><li>Asymmetric – two inversely related keys </li></ul></ul><ul><ul><ul><li>Private key </li></ul></ul></ul><ul><ul><ul><li>Public key </li></ul></ul></ul><ul><ul><li>If public key encrypts only private can decrypt and vice versa </li></ul></ul><ul><ul><li>Each party has both a public and a private key </li></ul></ul><ul><ul><li>Either the public key or the private key can be used to encrypt a message </li></ul></ul><ul><ul><li>Encrypted with public key and private key </li></ul></ul><ul><ul><ul><li>Proves identity while maintaining security </li></ul></ul></ul><ul><li>RSA public key algorithm www.rsasecurity.com </li></ul>
  96. 96. 7.4 Public Key Cryptography <ul><li>Encrypting and decrypting a message using public-key cryptography </li></ul>
  97. 97. 7.4 Public Key Cryptography <ul><li>Authentication with a public-key algorithm </li></ul>
  98. 98. 7.5 Key Agreement Protocols <ul><li>Key agreement protocol </li></ul><ul><ul><li>Process by which parties can exchange keys </li></ul></ul><ul><ul><li>Use public-key cryptography to transmit symmetric keys </li></ul></ul><ul><li>Digital envelope </li></ul><ul><ul><li>Encrypted message using symmetric key </li></ul></ul><ul><ul><li>Symmetric key encrypted with the public key </li></ul></ul><ul><ul><li>Digital signature </li></ul></ul>
  99. 99. 7.5 Key Agreement Protocols <ul><li>Creating a digital envelope </li></ul>
  100. 100. 7.6 Key Management <ul><li>Key management </li></ul><ul><ul><li>Handling and security of private keys </li></ul></ul><ul><ul><li>Key-generation is the process by which keys are created </li></ul></ul><ul><ul><ul><li>Must be truly random </li></ul></ul></ul>
  101. 101. 7.7 Digital Signatures <ul><li>Digital signature </li></ul><ul><ul><li>Authenticates sender’s identity </li></ul></ul><ul><ul><li>Run plaintext through hash function </li></ul></ul><ul><ul><ul><li>Gives message a mathematical value called hash value </li></ul></ul></ul><ul><ul><ul><li>Hash value also known as message digest </li></ul></ul></ul><ul><ul><li>Collision occurs when multiple messages have same hash value </li></ul></ul><ul><ul><li>Encrypt message digest with private-key </li></ul></ul><ul><ul><li>Send signature, encrypted message (with public-key) and hash function </li></ul></ul><ul><li>Timestamping </li></ul><ul><ul><li>Binds a time and date to message, solves non-repudiation </li></ul></ul><ul><ul><li>Third party, timestamping agency, timestamps messags </li></ul></ul>
  102. 102. 7.8 Public Key Infrastructure, Certificates and Certification Authorities <ul><li>Public Key Infrastructure (PKI) </li></ul><ul><ul><li>Integrates public key cryptography with digital certificates and certification authorities </li></ul></ul><ul><ul><li>Digital certificate </li></ul></ul><ul><ul><ul><li>Digital document issued by certification authority </li></ul></ul></ul><ul><ul><ul><li>Includes name of subject, subject’s public key, serial number, expiration date and signature of trusted third party </li></ul></ul></ul><ul><ul><li>Verisign ( www.verisign.com ) </li></ul></ul><ul><ul><ul><li>Leading certificate authority </li></ul></ul></ul><ul><ul><li>Periodically changing key pairs helps security </li></ul></ul>
  103. 103. 7.9 Cryptoanalysis <ul><li>Crpytoanalysis </li></ul><ul><ul><li>Trying to decrypt ciphertext without knowledge of the decryption key </li></ul></ul><ul><ul><li>Try to determine the key from ciphertext </li></ul></ul>
  104. 104. 7.10 Security Protocols <ul><li>Transaction security protocols </li></ul><ul><ul><li>Secure Sockets Layer (SSL) </li></ul></ul><ul><ul><li>Secure Electronic Transaction ™ (SET ™) </li></ul></ul>
  105. 105. 7.10.1 Secure Sockets layer (SSL) <ul><li>SSL </li></ul><ul><ul><li>Uses public-key technology and digital certificates to authenticate the server in a transaction </li></ul></ul><ul><ul><li>Protects information as it travels over Internet </li></ul></ul><ul><ul><ul><li>Does not protect once stored on receivers server </li></ul></ul></ul><ul><ul><li>Peripheral component interconnect (PCI) cards </li></ul></ul><ul><ul><ul><li>Installed on servers to secure data for an SSL transaction </li></ul></ul></ul>
  106. 106. 7.10.2 Secure Electronic Transaction™ (SET™) <ul><li>SET protocol </li></ul><ul><ul><li>Designed to protect e-commerce payments </li></ul></ul><ul><ul><li>Certifies customer, merchant and merchant’s bank </li></ul></ul><ul><ul><li>Requirements </li></ul></ul><ul><ul><ul><li>Merchants must have a digital certificate and SET software </li></ul></ul></ul><ul><ul><ul><li>Customers must have a digital certificate and digital wallet </li></ul></ul></ul><ul><ul><li>Digital wallet </li></ul></ul><ul><ul><ul><li>Stores credit card information and identification </li></ul></ul></ul><ul><ul><li>Merchant never sees the customer’s personal information </li></ul></ul><ul><ul><ul><li>Sent straight to banks </li></ul></ul></ul><ul><li>Microsoft Authenticode </li></ul><ul><ul><li>Authenticates file downloads </li></ul></ul><ul><ul><li>Informs users of the download’s author </li></ul></ul>
  107. 107. 7.11 Security Attacks <ul><li>Types of security attacks </li></ul><ul><ul><li>Denial of service attacks </li></ul></ul><ul><ul><ul><li>Use a network of computers to overload servers and cause them to crash or become unavailable to legitimate users </li></ul></ul></ul><ul><ul><ul><li>Flood servers with data packets </li></ul></ul></ul><ul><ul><ul><li>Alter routing tables which direct data from one computer to another </li></ul></ul></ul><ul><ul><ul><li>Distributed denial of service attack comes from multiple computers </li></ul></ul></ul><ul><ul><li>Viruses </li></ul></ul><ul><ul><ul><li>Computer programs that corrupt or delete files </li></ul></ul></ul><ul><ul><ul><li>Sent as attachments or embedded in other files </li></ul></ul></ul><ul><ul><li>Worm </li></ul></ul><ul><ul><ul><li>Can spread itself over a network, doesn’t need to be sent </li></ul></ul></ul>
  108. 108. 7.11 Security Attacks <ul><li>Types of viruses </li></ul><ul><ul><li>Transient virus </li></ul></ul><ul><ul><ul><li>Attaches itself to specific program </li></ul></ul></ul><ul><ul><ul><li>Is run every time the program is run </li></ul></ul></ul><ul><ul><li>Resident virus </li></ul></ul><ul><ul><ul><li>Once loaded operates for duration of computer’s use </li></ul></ul></ul><ul><ul><li>Logic bomb </li></ul></ul><ul><ul><ul><li>Triggers when a given condition is met, such as clock on computer matching a specified time </li></ul></ul></ul><ul><ul><li>Trojan horse </li></ul></ul><ul><ul><ul><li>Malicious program that hides within a friendly program </li></ul></ul></ul><ul><li>Web defacing </li></ul><ul><ul><li>Hackers illegally change the content of a Web site </li></ul></ul>
  109. 109. 7.11 Security Attacks <ul><li>Anti-virus software </li></ul><ul><ul><li>Reactive – goes after already known viruses </li></ul></ul><ul><ul><li>www.mcafee.com </li></ul></ul><ul><ul><ul><li>VirusScan scans to search computer for viruses </li></ul></ul></ul><ul><ul><ul><li>ActiveShield checks all downloads </li></ul></ul></ul><ul><ul><li>www.symantec.com </li></ul></ul><ul><ul><ul><li>Another virus software distributor </li></ul></ul></ul><ul><li>Computer Emergency Response Team (CERT ® ) </li></ul><ul><ul><li>Responds to reports of viruses and denial of service attacks </li></ul></ul><ul><ul><li>Provides CERT Security Improvement Modules </li></ul></ul><ul><ul><li>www.cert.org </li></ul></ul>
  110. 110. 7.12 Network Security <ul><li>Network security </li></ul><ul><ul><li>Allow authorized users access </li></ul></ul><ul><ul><li>Prevent unauthorized users from obtaining access </li></ul></ul><ul><ul><li>Trade-off between security and performance </li></ul></ul>
  111. 111. 7.12.1 Firewalls <ul><li>Firewall </li></ul><ul><ul><li>Protects local area network (LAN) from outside intruders </li></ul></ul><ul><ul><li>Safey barrier for data flowing in and out </li></ul></ul><ul><ul><li>Prohibit all data not allowed or permit all data not prohibited </li></ul></ul><ul><li>Types of firewalls </li></ul><ul><ul><li>Packet-filtering firewalls </li></ul></ul><ul><ul><ul><li>Rejects all data with local addresses from outside </li></ul></ul></ul><ul><ul><ul><li>Examine only source not content </li></ul></ul></ul><ul><ul><li>Application level firewalls </li></ul></ul><ul><ul><ul><li>Attempt to scan data </li></ul></ul></ul>
  112. 112. 7.12.2 Kerberos <ul><li>Kerberos </li></ul><ul><ul><li>Uses symmetric secret-key cryptography to authenticate users in a network </li></ul></ul><ul><ul><li>Authenticates who a client computer is and if he has the right’s to access specific parts of the network </li></ul></ul>
  113. 113. Chapter 8 – Hardware, Software and Communications Outline 8.1 Introduction 8.2 Structure of the Internet 8.3 Hardware 8.3.1 Servers 8.3.2 Communications Media 8.3.3 Storage Area Networks (SANs) 8.4 Connecting to the Internet 8.4.1 Digital Subscriber Lines (DSL) 8.4.2 Broadband 8.4.3 Integrated Services Digital Network (ISDN) 8.4.4 Wireless 8.4.5 WebTV 8.5 Software 8.5.1 Applications Service Providers (ASPs) 8.5.2 Operating Systems 8.5.3 Databases
  114. 114. Chapter 8 – Hardware, Software and Communications Outline 8.6 Building a Web Site 8.6.1 Web-Site Construction Services 8.6.2 Web-Site Hosting 8.6.3 Domain Names 8.7 E-Commerce Consulting
  115. 115. 8.1 Introduction <ul><li>Technological advances </li></ul><ul><ul><li>Computer and communications costs decreasing </li></ul></ul><ul><ul><li>Computer power and speed increasing </li></ul></ul><ul><ul><li>Speed of data transfers virtually unlimited </li></ul></ul>
  116. 116. 8.2 Structure of the Internet <ul><li>Structure of the Internet </li></ul><ul><ul><li>Network of interconnected host computers </li></ul></ul><ul><ul><ul><li>Each host has unique address, IP address </li></ul></ul></ul><ul><ul><li>Communicate by sending packets of data across network </li></ul></ul><ul><ul><ul><li>Source address </li></ul></ul></ul><ul><ul><ul><li>Destination address </li></ul></ul></ul><ul><ul><ul><li>Sequencing information </li></ul></ul></ul><ul><ul><ul><li>Error-control information </li></ul></ul></ul><ul><ul><ul><li>Data </li></ul></ul></ul><ul><ul><li>Router </li></ul></ul><ul><ul><ul><li>Moves packets across Internet </li></ul></ul></ul><ul><ul><ul><li>Packets not sent directly, could pass through many routers </li></ul></ul></ul><ul><ul><ul><li>If one part of Internet fails, rest can still function </li></ul></ul></ul>
  117. 117. 8.3 Hardware <ul><li>Hardware </li></ul><ul><ul><li>Host computers </li></ul></ul><ul><ul><li>Communications media used to connect computers </li></ul></ul>
  118. 118. 8.3.1 Servers <ul><li>Server </li></ul><ul><ul><li>Host that manages network resources </li></ul></ul><ul><ul><li>Fulfills client requests </li></ul></ul><ul><ul><li>Many types </li></ul></ul><ul><ul><ul><li>Web servers, e-mail servers, database servers and file servers </li></ul></ul></ul><ul><li>Hypertext transfer protocol (HTTP) </li></ul><ul><ul><li>Requests and transfers pages from Web server </li></ul></ul><ul><li>Protocol </li></ul><ul><ul><li>Defines steps to communicate over Internet </li></ul></ul><ul><ul><li>Other examples </li></ul></ul><ul><ul><ul><li>File transfer protocol (FTP) </li></ul></ul></ul><ul><ul><ul><li>Post office protocol (POP) </li></ul></ul></ul><ul><ul><ul><li>Simple mail transfer protocol (SMTP) </li></ul></ul></ul>
  119. 119. 8.3.2 Communications Media <ul><li>Communications medium </li></ul><ul><ul><li>Hardware that connects digital equipment together </li></ul></ul><ul><ul><li>Bandwidth </li></ul></ul><ul><ul><ul><li>Measure of how much data can be transferred </li></ul></ul></ul><ul><ul><ul><li>High bandwidth more data </li></ul></ul></ul><ul><ul><ul><li>Measured in bits per second (bps), kilobits per second (Kbps) or megabits per second (Mbps) </li></ul></ul></ul><ul><ul><li>Copper wire </li></ul></ul><ul><ul><ul><li>Widely used, widely available, reliable and easy to install </li></ul></ul></ul><ul><ul><ul><li>Inadequate for high speed data transmission </li></ul></ul></ul><ul><ul><li>Fiber-optic cable </li></ul></ul><ul><ul><ul><li>Thinner and lighter than copper, higher bandwidth </li></ul></ul></ul><ul><ul><ul><li>Modulation </li></ul></ul></ul><ul><ul><ul><ul><li>Transfer data as light then demodulate </li></ul></ul></ul></ul>
  120. 120. 8.3.2 Communications Media <ul><ul><li>Opto-chip </li></ul></ul><ul><ul><ul><li>Converts photon into electric current </li></ul></ul></ul><ul><ul><li>Signal strength </li></ul></ul><ul><ul><ul><li>Decreases over distance </li></ul></ul></ul><ul><ul><ul><li>Repeaters – retransmit signals across copper wire or fiber-optic cable when they become weak </li></ul></ul></ul>
  121. 121. 8.3.3 Storage Area Networks (SANs) <ul><li>Storage Area Network (SAN) </li></ul><ul><ul><li>Provides high-capactity, reliable data storage and delivery on a network </li></ul></ul><ul><ul><li>Provide backup and recovery services </li></ul></ul><ul><ul><ul><li>Mirroring technology </li></ul></ul></ul>
  122. 122. 8.4 Connecting to the Internet <ul><li>Internet Service Provider (ISP) </li></ul><ul><ul><li>Connect to Internet through phone lines </li></ul></ul><ul><ul><li>Analog modem </li></ul></ul><ul><ul><ul><li>Converts digital signals into sound </li></ul></ul></ul><ul><li>Types of Internet connections </li></ul>
  123. 123. 8.4.1 Digital Subscriber Lines (DSL) <ul><li>Digital Subscriber Line (DSL) </li></ul><ul><ul><li>High-bandwidth Internet access over telephone lines </li></ul></ul><ul><ul><ul><li>Up to 55 Mbps </li></ul></ul></ul><ul><ul><li>Uses bandwidth not used for voice calls </li></ul></ul><ul><ul><li>Speed decreases rapidly over distance </li></ul></ul><ul><ul><ul><li>Only available up to 20,000 feet from central office </li></ul></ul></ul><ul><li>Types of DSL </li></ul><ul><ul><li>Asymmetric </li></ul></ul><ul><ul><ul><li>Sending data upstream slower than receiving downstream </li></ul></ul></ul><ul><ul><li>Symmetric </li></ul></ul><ul><ul><ul><li>Same upstream and downstream </li></ul></ul></ul>
  124. 124. 8.4.1 Digital Subscriber Lines (DSL) <ul><li>Integrated Access Device (IAD) </li></ul><ul><ul><li>Provides network connections for high-speed Internet </li></ul></ul><ul><ul><li>Transmits voice data to a gateway </li></ul></ul><ul><ul><li>Gateway takes voice data and sends it across telephone lines </li></ul></ul>
  125. 125. 8.4.2 Broadband <ul><li>Broadband </li></ul><ul><ul><li>High-bandwidth </li></ul></ul><ul><ul><li>Always connected, no need to dial </li></ul></ul><ul><ul><li>Can handle voice, data and video information </li></ul></ul><ul><li>Cable modem </li></ul><ul><ul><li>Translates digital signals for transmission over television cables </li></ul></ul><ul><ul><li>Bandwidth shared among many users </li></ul></ul><ul><ul><li>Downstream up to 1.5 Mbps, upstream of 128 Kbps </li></ul></ul>
  126. 126. 8.4.3 Integrated Services Digital Network (ISDN) <ul><li>ISDN </li></ul><ul><ul><li>Speed up to 128 Kbps </li></ul></ul><ul><ul><li>Terminal adaptor </li></ul></ul><ul><ul><li>Bandwidth divided into three channels </li></ul></ul><ul><ul><ul><li>Basic Rate Interface (BRI) </li></ul></ul></ul><ul><ul><ul><li>Two bearer (B) channels </li></ul></ul></ul>
  127. 127. 8.4.4 Wireless <ul><li>Wireless Internet access </li></ul><ul><ul><li>Manage information away from computer </li></ul></ul><ul><ul><li>Wireless Application Protocol (WAP) </li></ul></ul><ul><ul><li>Wireless Markup Language (WML) </li></ul></ul><ul><ul><ul><li>Language for designing Web content for wireless devices </li></ul></ul></ul><ul><ul><ul><li>Eliminates graphics and animations </li></ul></ul></ul><ul><ul><li>Microbrowsers </li></ul></ul><ul><ul><ul><li>Access the Web via wireless Internet </li></ul></ul></ul><ul><li>Limitations of wireless devices </li></ul><ul><ul><li>Unreliable connections and slow connection speeds </li></ul></ul><ul><ul><li>Future upgrades </li></ul></ul><ul><ul><ul><li>General packet radio services (GPRS) </li></ul></ul></ul><ul><ul><ul><li>Universal mobile telecommunications standard (UMTS) </li></ul></ul></ul>
  128. 128. 8.4.5 WebTV <ul><li>WebTV </li></ul><ul><ul><li>Low cost Internet connection through TV </li></ul></ul><ul><ul><li>Easy to add audio and video clips </li></ul></ul><ul><ul><li>Enhances television programming </li></ul></ul><ul><ul><li>Standard system </li></ul></ul><ul><ul><ul><li>Wireless keyboard </li></ul></ul></ul><ul><ul><ul><li>8.6 gigabyte hard drive </li></ul></ul></ul><ul><ul><ul><li>56 Kbps modem </li></ul></ul></ul>
  129. 129. 8.5 Software <ul><li>Specialized software for Internet businesses </li></ul><ul><ul><li>Application service providers (ASPs) </li></ul></ul><ul><ul><li>Operating systems </li></ul></ul><ul><ul><li>Databases </li></ul></ul>
  130. 130. 8.5.1 Application Service Providers (ASPs) <ul><li>ASPs </li></ul><ul><ul><li>Provide customized business software applications over Internet </li></ul></ul><ul><ul><li>Develop commonly used applications and provide customization </li></ul></ul><ul><ul><li>Applications maintained and updated by ASP </li></ul></ul><ul><ul><li>Able to provide applications with less development time </li></ul></ul><ul><li>Virtual private networks </li></ul><ul><ul><li>Allow businesses secure connections to their applications </li></ul></ul><ul><ul><li>Point-to-point tunneling protocol (PPTP) </li></ul></ul>
  131. 131. 8.5.2 Operating Systems <ul><li>Operating system </li></ul><ul><ul><li>Software that manages computer’s resources </li></ul></ul><ul><ul><li>Types of operating systems </li></ul></ul><ul><ul><ul><li>Multi-user, multi-processing, multi-tasking and multi-threading </li></ul></ul></ul><ul><ul><li>Software platform </li></ul></ul><ul><ul><ul><li>Provides basic services that applications need to run </li></ul></ul></ul><ul><ul><li>Major Operating systems </li></ul></ul><ul><ul><ul><li>Unix, Linux, Macintosh and Windows </li></ul></ul></ul><ul><li>Linux </li></ul><ul><ul><li>Popular for Web hosting </li></ul></ul><ul><ul><li>Open source </li></ul></ul><ul><ul><ul><li>Source code is readily available </li></ul></ul></ul>
  132. 132. 8.5.3 Databases <ul><li>Database </li></ul><ul><ul><li>Integrated collection of data </li></ul></ul><ul><ul><li>Database management system (DBMS) </li></ul></ul><ul><ul><ul><li>Data itself and software to control storage and retrieval </li></ul></ul></ul><ul><ul><li>Relational databases </li></ul></ul><ul><ul><ul><li>Structured Query Language (SQL) </li></ul></ul></ul><ul><ul><ul><li>Composed of tables </li></ul></ul></ul><ul><ul><ul><li>Relationships between data independent of data structures </li></ul></ul></ul><ul><ul><li>Model </li></ul></ul><ul><ul><ul><li>Rows are called records </li></ul></ul></ul><ul><ul><ul><li>Primary key used for referencing in the table </li></ul></ul></ul><ul><ul><ul><li>Columns represent fields or attributes </li></ul></ul></ul>
  133. 133. 8.5.3 Databases <ul><li>Example of a relational database table </li></ul>
  134. 134. 8.6 Building a Web Site <ul><li>Keys to Web site success </li></ul><ul><ul><li>Visual appearance </li></ul></ul><ul><ul><li>Usability </li></ul></ul><ul><ul><li>Functionality </li></ul></ul>
  135. 135. 8.6.1 Web-Site Construction Services <ul><li>Companies offer services and software for Web design </li></ul><ul><ul><li>Freemerchant.com </li></ul></ul><ul><ul><ul><li>Turnkey solution for building an online store </li></ul></ul></ul><ul><ul><ul><li>Hosting, sore-building capabilities and shopping cart model </li></ul></ul></ul><ul><ul><li>BigStep.com </li></ul></ul><ul><ul><ul><li>Walks user through building online store </li></ul></ul></ul><ul><ul><li>eCongo.com </li></ul></ul><ul><ul><ul><li>Free e-commerce site builder for building and maintaing online store </li></ul></ul></ul><ul><ul><ul><li>Marketing support </li></ul></ul></ul><ul><ul><li>tripod.com </li></ul></ul><ul><ul><ul><li>SiteBuilder – a tool for creating and building Web sites </li></ul></ul></ul>
  136. 136. 8.6.1 Web-Site Construction Services <ul><ul><li>Commerce One ( www.commerceone.com ) </li></ul></ul><ul><ul><ul><li>Buisness-to-business e-commerce solutions </li></ul></ul></ul><ul><ul><ul><li>BuySite – set up own B2B exchanges </li></ul></ul></ul><ul><ul><li>Virtual Spin ( www.virtualspin.com ) </li></ul></ul><ul><ul><ul><li>Designs and implements infrastructure to run an e-business </li></ul></ul></ul><ul><ul><li>Yahoo! Store (store.Yahoo.com) </li></ul></ul><ul><ul><ul><li>Charges monthly fee based on number of items being sold </li></ul></ul></ul><ul><ul><ul><li>Prepackaged product </li></ul></ul></ul><ul><ul><ul><li>Can create a demo account </li></ul></ul></ul>
  137. 137. 8.6.2 Web-Site Hosting <ul><li>Web-hosting </li></ul><ul><ul><li>Offer customers space on a Web server to build their site </li></ul></ul><ul><ul><li>Dedicated servers </li></ul></ul><ul><ul><ul><li>A server that serves a single customer’s Web site </li></ul></ul></ul><ul><ul><li>Co-location services </li></ul></ul><ul><ul><ul><li>Secure physical location for business’ server hardware </li></ul></ul></ul><ul><ul><li>DellHost is leader in Web-hosting </li></ul></ul>
  138. 138. 8.6.3 Domain Names <ul><li>Domain names </li></ul><ul><ul><li>Real estate of the Internet </li></ul></ul><ul><ul><li>Domain name system (DNS) </li></ul></ul><ul><ul><ul><li>Translates host names into IP addresses </li></ul></ul></ul><ul><ul><li>Three parts </li></ul></ul><ul><ul><ul><li>Host name – usually www </li></ul></ul></ul><ul><ul><ul><li>Domain name – name of company or key word or phrase </li></ul></ul></ul><ul><ul><ul><li>Top-level domain (TLD) – describes type of organization that owns the domain name </li></ul></ul></ul><ul><ul><ul><ul><li>com and org are widely used examples </li></ul></ul></ul></ul><ul><ul><li>Internet Corporation for Assigned Names and Numbers (ICANN) </li></ul></ul><ul><ul><ul><li>Regulates domain names and IP addresses </li></ul></ul></ul><ul><ul><ul><li>www.nwtworksolutions.com and register.com allow domain name registration </li></ul></ul></ul>
  139. 139. 8.7 E-Commerce Consulting <ul><li>E-commerce consulting </li></ul><ul><ul><li>Hiring consulting firms to create and maintain Web sites </li></ul></ul><ul><ul><li>List of top e-commerce consulting firms </li></ul></ul>
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