E-Commerce (ITSP501 course)


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E-Commerce (ITSP501 course)

  1. 1. ITSP5.01Information Systems Principles
  2. 2.  E-Commerce is generally associated with buying and selling over the Internet. It is also associated with conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network
  3. 3.  A full definition is that "E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals" – Andam (2003)
  4. 4.  Offline Commerce:  Brick-and-mortar store to conduct trades  Products displayed on shelves, services explained by sales personnel  Product orders are built by taking the product off the shelf, and often placing in a shopping cart  Payments are generally made through an electronic card reader, or by handing over cash  Products are usually available to take from the store immediately following payment
  5. 5.  E-Commerce:  Online website to conduct trades  Images and descriptions display products and services  Orders are built through ‘shopping cart’ software  Payments are made through secure merchant gateways  Product trades are completed by shipping or download(see Rubman, 2010)
  6. 6.  B2B – e-commerce between businesses B2C – e-commerce between a business and a customer, where the business is the supplier B2G – e-commerce between a business and a government entity, where the business is the supplier C2C - e-commerce between customers C2B - e-commerce between a business and a customer, where the customer is the supplier
  7. 7.  Intel sells computer parts to computer sellers like Dell http://www.intel.com/
  8. 8.  Computer Lounge sells PC components and systems to customers http://www.computerlounge.co.nz/
  9. 9.  KBR provides defence, security and other services to government entities around the world http://www.kbr.com/
  10. 10.  Trade Me provides an online auction space for trading goods, which can include trades between 2 customers, and a customer selling to a business http://www.trademe.co.nz/
  11. 11.  Need a product or service to trade Need a website that enables trading Need to attract web-surfers to the website Need to be able to accept orders and payments Need to be able to fill orders Need to be able to accept returns and handle warranties Need to be able to provide customer service Needs to be secure(see Brain, n.d.)
  12. 12.  A website area to display products and services Shopping cart software to allow an order to be made Link to a merchant gateway, so payments can be made A download facility, if products are available for download A means to communicate with customers (e.g. online forms, email, account facility)(see Brain, n.d.; Rubman, 2010)
  13. 13.  Potential threats include:  Hackers / crackers  Denial of service attacks  Network snooping attacks  Viruses and other malicious software / code  Social engineering attacks (e.g. phishing)  Dishonest customers
  14. 14.  Mitigating these threats include:  Using firewalls  Using antivirus software  Using Secure Socket Layer (SSL) when exchanging order and payment data between sellers and buyers  Encrypt sensitive customer information stored  Apply software security patches when available  Use an external security consultant to analyse your system  Use intrusion detection software  Educate customers to keep their details private(see Khusial & McKegney, 2005)
  15. 15.  An open source web application content management system that can be used as a basis for creating an e-commerce website Free download from http://www.oscommerce.com/solutions/downloads Includes a shopping cart system Additional features can be downloaded from http://addons.oscommerce.com/ and added to an osCommerce website. These include security, payment and content structure features.
  16. 16.  Default osCommerce home page
  17. 17.  Default product information page
  18. 18.  Default product ordering page
  19. 19.  Default login page
  20. 20.  Default delivery information page
  21. 21.  Default payment information page
  22. 22.  Default order confirmation page
  23. 23.  E-Commerce is commonly associated with trading goods and services using electronic communications and digital information processing technology E-Commerce typically uses a website to conduct trades, where ‘shopping cart’ software is used to build orders, a secure merchant gateway is used to handle payments, and ordered goods are either shipped or downloaded Types of E-Commerce include B2B, B2C, B2G, C2C and C2B
  24. 24.  Potential threats can include hackers, crackers, denial of service attacks, network snooping attacks, malicious software or code, and social engineering attacks, dishonest customers Ways to mitigate these threats include firewalls, antivirus software, SSL, encryption, software security patches, external security consultants, intrusion detection software, educate customers osCommerce can be used as a basis for developing an e-commerce website
  25. 25.  Andam, Z.R. (2003). E-Commerce and E-Business. Retrieved 14 May, 2012, from: http://en.wikibooks.org/wiki/E-Commerce_and_E- Business Brain, M. (n.d.). How e-commerce works. Retrieved 21 May, 2012, from: http://money.howstuffworks.com/ecommerce.htm Khusial, D.; McKegney, R. (2005). e-Commerce security: attacks and preventive strategies. Retrieved 21 May, 2012, from: http://www.ibm.com/developerworks/websphere/library/te charticles/0504_mckegney/0504_mckegney.html Rubman, A. (2010). 4 key elements of e-commerce. Retrieved 21 May, 2012, from: http://www.marissaberger.com/blog/2010/05/26/4-key- elements-of-e-commerce