E-Commerce and
E-Business
Introduction to Computer Science
2007-2008

Aims
• Describing the phases a company goes
through using Internet for business
• Describing the forms of e-commerce
• Describing the purpose and uses of intranets
and extranets
• Describing the use od web sites to support
commercial transactions
• Describing the ethical issues of e-commerce
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Contents
1. E-Commerce in perspective
2. Intranets: internal business processes
3. Extranets: business alliances
4. B2C: customer-centered web design
5. Technical requirements for e-commerce
6. Ethical issues of e-commerce
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• Created in 1994
• Opened in July 1995
as a virtual book-stores
Jeff Bezos. Amazon founder
• 20 mill. customers
in 160 countries
• Survivor of .dot crises
• Powerful recommendation
system
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E-commerce in
Perspective
Sharing business information, maintaining business
relationships and conducting business
transactions through the use od telecomm.
networks
Involves reorganising business processes
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E-comm Transforms
Business
• .com companies (virtual)
• Essential, or at least important for the rest
• Increases speed and efficiency of business
processes
• Variants: e-commerce (electronic)
i-commerce (internet)
m-commerce (mobile)
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E-Comm Models
B C
business-to-business business-to-consumer
B (B2B) (B2C)
consumer-to-business consumer-to-consumer
C (C2B) (C2C)
Put examples of each case
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Intranets
• Basis for B2E: internet
supporting internal activties
• Improve comm. inside the
company
• Advantages
• cross-platform
• open standards
• minimal user training
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Characteristics of a B2E
Intranet
• physical tech: LAN with Ethernet
• middleware: software which handles
physical comm. (TCP/IP based)
• firewall sw for security
• standard web applications:
browsers, e-mail clients, file sharing
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How To Use B2E
Intranets
• Information access for employees:
centralised databases with a common interface
• Collaboration and teamwork:
distribute information, remote working groups
• Internal business transactions:
increase efficiency and reduces paperwork
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Extranets
Business Alliances
• Link intranets of different companies
(e-marketplaces)
• Activities between trusted business partners
Functionalities
• place orders
• check stock level
• confirm inoice status
• exchange business information
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Extranets
with Public Networks
• use public, open comm. lines without additional
security mechanisms
• low cost, but low security (and high risk)
• protection: firewalls and logons
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Extranets with VPN
• use public, open comm. lines
• an special protocol creates a virtual tunnel
across the intranets
• VPNs are becoming the preferred method:
economical and secure enough
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Extranets
with Private Networks
• physically attached lines (leased)
• high cost
• high security levels
• extent of access for external
users (only business partners)
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B2C
• Customer centered web design
• Often interactive features included
• CRM: customer relationship management
• critical without personal contact
• database with relevant information:
preferences, past purchases, communications...
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Features of Well
Designed Sites
• Speed of transactions
• Large, up-to-date selection (the ‘Long Tail’)
• Ease of use
• Secure transations
• After-sale features
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Technical Requirements:
Web Server
• Hw&Sw to store pages and
handle trafic
• Only large companies have
the know-how and the
capability to run their own
server
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Technical Requirements:
Hosting Service
• Provide space in their own servers and tools
to set up business web pages
• Handle almost all
transactions steps
(including payments)
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Technical Requirements:
Software
• Provides commercial services
• Database (catalogue)
+ front-end
• Capabilities: security, search
engine, data analysis
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Company Policies
A Code of Ethics
• Privacy policy of the organisation
• Permission to transmit people data
• How company inform customers about the use
of personal data
• Ownership about network posting and
communications
• Tracking of user behaviours
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