MGT 410 Homework Set 3 Provide a short answer to each of the following questions. 1. Use a cause and effect diagram to develop a list of potential causes for each of the following: a. Failure to earn an A on an examination. b. You consistently arrive late for class or work. c. You consistently slice when hitting a golf ball with your driver. d. Your table lamp fails to light when you turn the switch on. 2. Prepare a flow chart for getting to work or school in the morning. Discuss areas for improvement revealed by the flow chart. 3. You have collected the following data from customer comment cards at your restaurant. Construct a Pareto diagram to show which of the problems should be investigated first. Show the cumulative frequency line on your diagram. CommentFrequency Dirty dishes 11 Dirty silverware 18 Inattentive service 98 Cold food 23 Wrong order 5 Overpriced 35 Long wait 4 4. Use the following data to construct a scatter diagram. Does there appear to be a relationship between hours of overtime and number of rejects? Discuss. Hours of OvertimeNumber of Rejects 127 33 90 25 95 23 160 40 10 9 80 19 27 14 103 28 48 19 65 31 5. Your boss has asked you to evaluate the reject percentage for the past year on one of the production lines. Use the following data to construct a run chart. Does there appear to be a pattern in the change in reject rate over the year? MonthReject % January 3.7 February 3.3 March 3.1 April 3.5 May 3.3 June 2.7 July 3.0 August 2.3 September 2.5 October 2.2 November 1.6 December 1.7 Quality Management and Improvement Module 6 Discussion Explain the concept of the control chart and identify out-of-control signals on a control chart. Explain what would you do if you were a Quality Manager ? Finance Module 6 Discussion Cash flow projections are a central component to the analysis of new investment ideas. In most firms, the person responsible for making these projections is not the same person who generated the investment idea in the first place. Why?     Course Review   Required Text Schneider, G. (2012). Electronic Commerce (10th edition), Course Technology Cengage learning. Boston, MA ISBN: 978-1-133-52682-7 The expansion of the Internet, increased bandwidth and advancements in information systems has increased the practicality and usability of Ecommerce. “For many people the term “Electronic commerce” means shopping on the part of the Internet called the World Wide Web (the Web)” (Schneider, 2013, p. 5). These advancements in technology have brought Ecommerce from the first wave, the beginning of Ecommerce, to the portable mobile devises that are now at the forefront of the Ecommerce third wave (Schneider, 2013). There are three main elements of Ecommerce: Business processes that support selling and purchasing activities. Business-to-consumer electronic commer ...

1. MGT 410
Homework Set 3
Provide a short answer to each of the following questions.
1. Use a cause and effect diagram to develop a list of potential
causes for each of the following:
a. Failure to earn an A on an examination.
b. You consistently arrive late for class or work.
c. You consistently slice when hitting a golf ball with your
driver.
d. Your table lamp fails to light when you turn the switch on.
2. Prepare a flow chart for getting to work or school in the
morning. Discuss areas for improvement revealed by the flow
chart.
3. You have collected the following data from customer
comment cards at your restaurant. Construct a Pareto diagram to
show which of the problems should be investigated first. Show
the cumulative frequency line on your diagram.
CommentFrequency
Dirty dishes 11
Dirty silverware 18
Inattentive service 98
Cold food 23
Wrong order 5
Overpriced 35
Long wait 4
4. Use the following data to construct a scatter diagram. Does
there appear to be a relationship between hours of overtime and
number of rejects? Discuss.
Hours of OvertimeNumber of Rejects

2. 127 33
90 25
95 23
160 40
10 9
80 19
27 14
103 28
48 19
65 31
5. Your boss has asked you to evaluate the reject percentage for
the past year on one of the production lines. Use the following
data to construct a run chart. Does there appear to be a pattern
in the change in reject rate over the year?
MonthReject %
January 3.7
February 3.3
March 3.1
April 3.5
May 3.3
June 2.7
July 3.0
August 2.3
September 2.5
October 2.2
November 1.6
December 1.7
Quality Management and Improvement
Module 6 Discussion
Explain the concept of the control chart and identify out-of-
control signals on a control chart. Explain what would you do if

3. you were a Quality Manager ?
Finance
Module 6 Discussion
Cash flow projections are a central component to the analysis of
new investment ideas. In most firms, the person responsible for
making these projections is not the same person who generated
the investment idea in the first place. Why?
Course Review
Required Text
Schneider, G. (2012). Electronic Commerce (10th edition),
Course Technology Cengage learning. Boston, MA
ISBN: 978-1-133-52682-7

4. The expansion of the Internet, increased bandwidth and
advancements in information systems has increased the
practicality and usability of Ecommerce.
“For many people the term “Electronic commerce” means
shopping on the part of the Internet called the World Wide Web
(the Web)” (Schneider, 2013, p. 5). These advancements in
technology have brought Ecommerce from the first wave, the
beginning of Ecommerce, to the portable mobile devises that are
now at the forefront of the Ecommerce third wave (Schneider,
2013).
There are three main elements of Ecommerce:
Business processes that support selling and purchasing
activities.
Business-to-consumer electronic commerce
Business-to Business electronic commerce (Schneider, 2013,
figure 1-1, p. 7).
Additionally, there are Consumer-to-Consumer (C2C) activities
such as EBay transactions between consumers, and Business to
Government (B2G) activities such as tax transactions. While
there are many online transactions suitable for Ecommerce, not
all business processes are suitable for Ecommerce. Figure 1-5 of
Schneider, 2013, p. 17 provides a summary of business
processes the their suitability to Ecommerce.
Chapter 1 Intro to Ecommerce and Ecommerce infrastructure
Some Business processes may never fully adapt to Ecommerce
such as the grocery industry. While some major grocery chains
offer online ordering and delivery, the companies that are in the
online grocery business are small and tend to favor metropolitan
areas where there is a mass market that supports the Ecommerce

5. grocery industry (Schneider, 2013, p. 20). There are additional
issues that can curtail Ecommerce in certain business processes
such as cost, technology issues, Cultural and legal concerns
(Schneider, 2013, p. 21).
“Transaction costs are the total of all cost that a buyer and
seller incur . . . [for a] transaction” (Schneider, 2013, p. 23).
Figure 1.6 of Schneider, 2013, p. 24 provides a notional flow of
an Ecommerce market and the transactions where the
Ecommerce process may incur cost. Moving into the Ecommerce
market is not without risk and any company interested in
pursuing Ecommerce opportunities should conduct a Strength,
Weakness, Opportunity and Threats (SWOT) analysis to
determine the practicality of entering into the Ecommerce
market (Schneider, 2013, Figure 1.11 p. 33 and Figure 1-12 p.
34). Trust is paramount in Ecommerce. The ability to develop a
reputation based on product, delivery, and security satisfaction
is essential to maintaining Ecommerce clients.
International Ecommerce has unique attributes that can be
challenging for International Ecommerce. Language, cultural,
Government and Infrastructure issues can complicate the
Ecommerce model. Figure 1.6 of Schneider, 2013, p. 24
provides a notional flow of International trade transactions.
The origin of the Internet, the infrastructure that makes
Ecommerce possible, is the United State Department of Defense
that developed a method of linking computers together for
command and control of missile systems using large mainframe
computers (Schneider, 2013, p. 55). “In 1969, a Defense
Department researcher in the Advanced Research Projects

6. Agency (ARPA) . . . connect[ed] four computers at [UCLA],
SRI International, [UC Santa Barber], and the University of
Utah” (Schneider, 2013, p. 56). This connection was the first
instance of a network that eventually became the World Wide
Web (WWW). The first Email list followed in 1979 and through
the 1970’s and 80’s network software and applications
developed mainly in the University sector (Schneider, 2013).
By the late 1980s and 1990s, private sector growth began
through the introduction of public Internet Providers and the
development of network software and Internet Protocol (IP)
addresses. As the number of Internet Hosts (Computers directly
connected to the internet) grew so did the number of people who
were using the Internet (Schneider, 2013, figure 2-1, p. 58).
Chapter 2. Technology Infrastructure and WWW
In addition to the Intranet, there are certain applicati ons that
require special types of Internet connectivity. These nets are
termed Intranet net as opposed to Internet and Extranet.
Intranets are Internets that remain within an the organization
and Extranet is a dedicated internet hat communicates with
specific entities and business (Schneider, 2013, p. 61). Intranets
and Extranets are specific purpose Internets generally
established to reduce cost and increase efficiency.
Internet protocols evolved to two main protocols, Transmission
Control Protocol (TCP) and Internet Protocol (IP) commonly
referred to as TCP/IP. The addresses scheme for the Internet
Protocol is based on the binary system of 1’s and 0’s, the
fundamental language of the computer. Each 1 and 0 referred to
as a bit provides for a on “1” or off “0” state of a binary bit. To
this end, a string of bits make up a computer address. Defining
the bits as either 1 or 0 in a specific pattern makes for a unique
address. The more bits the more addresses are available. As the

7. Internet has grown, different versions of TCP/IP addresses are
introduced to accommodate the growing number of addresses to
accommodate the growing number of individuals and companies
on the Internet. The first non-developmental version of TCP/IP
was version 4 and contained 32 bits. The new version 6 (there
was no version 5) contains 128 bits. 32 bits produces a potential
4,294,967,296.00 Internet addresses where 128 bits produces a
potential
340,282,366,920,938,000,000,000,000,000,000,000,000.00
Internet addresses. There is a great demand for the Internet.
Packet switching net works provided a means of making the
Internet practical by providing an organized means of
transferring data for email and other data through a standard
protocol. This enabled the Internet to connect and be configured
into Local Area Networks (LANs) and Wide Area Networks
(WANs). Schneider, 2013, figure 2-2, p. 60 provides a notional
rendering of LANs and WANs and how they may connect to the
Internet.
The World Wide Web evolved from a few computers to many
computers connected to the Internet essentially forming a web
of computers that circles the globe. The ability to search the
textural information on the web is a result of the work of the
scientific community that developed hypertext and eventually
Hyper-Text Markup Language (HTML) (Schneider, 2013, pp.
66-67). Markup languages are essential for viewing web page
content as the text markup language specifies a set of tags that
are inserted into the [webpage] text. These markup tags . . .
provide formatting instructions that Web client software can
understand . . . as it renders the text and [web] page elements
(Schneider, 2013, pp. 70-71).
Standard Generalized Markup Language (SGML) is the germinal

8. standard first derived in 1986. From this standard, the Mark Up
languages of HTML, XML, and XHTML were developed all
with the same basic intent of rendering tagged information on
Web site for various purposes. Figure 2-5 on page 71 of
Schneider, 2013, provides a hierarchical flow of these
standards.
Connectivity to the Internet may be established in several
different manners; however, all rely on specific Band Width.
“Band Width” is the amount of data that can travel through a
communications medium [wire or wireless] per unit of time”
(Schneider, 2013, p. 84). “Figure 2-15 Internet connection
options” (Schneider, 2013, figure 2-1, p. 91) provides an
overview of Internet services (connection options) and
capabilities in relation to startup and operational cost.
With the original ARPANET now the Internet and World Wide
Web, scientists have developed an Internet2 for purposes of
research and development which is separate from the Internet.
The Internet2 is mainly a research tool for technology
development in areas of bandwidth and Internet speed
(Schneider, 2013, p. 91).
Semantic web is a project that is used for conducting research
on the development of advanced methods of reading information
from the Internet. Semantic Web development is research into
making the entire World Wide Web a searchable database based
on XML by tagging webpages to understand the meaning of the
words and to collect data from several web sites based on the
users search criteria (Schneider, 2013, p. 91).

9. The Revenue Model for Ecommerce is rooted in the
development of the catalog beginning in 1872 (Schneider, 2013,
p. 107). The catalog concept allows shoppers to view what the
want to buy and the cost of the each item. Ecommerce web sites
are similar in that they provide information, pictures and prices
for items for purchase. Discounts and shipping information are
also provided (Schneider, 2013, p. 112).
Fee for content Ecommerce sells the rights to access
information. Such webs sites provide Legal, academic, business,
technical content, Electronic books, online music and video
(Schneider, 2013, pp. 112-113). Figures 3-2 on page 116 and
figure 3-3 on page 119 provides examples of revenue models
(Schneider, 2013).
Chapter 3 Selling on the web Marketing on the web
Creating effective web presences are essential. Figure 3-5 on
page 133 (Schneider, 2013) list the objectives and strategies for
effective web presences. Establishing an effective brand image
is essential such as Coke and Pepsi (Schneider, 2013, p. 133).
Building flexibility into the web site is the best way to meet the
needs of all clients (Schneider, 2013). Some visually impaired
clients may use special web browser software for reading text
from web sites. “The W3C web accessibility initiative includes
a number of useful links to information regarding these issues”
(Schneider, 2013, p. 137). Visit the W3C web site at
http://www.w3.org/WAI/ for more information.
Connecting with customers may be accomplished in a
combination of three ways; Mass media is a one-to-many model,
the web, a many-to-one and many-to-many model and personal
contact, a one-to-one model (Schneider, 2013, figure 3-9, p.
143).

10. Effectively communicating with different web segments
requires identifying potential customer groups. Media selection
that a particular customer group may identify with is essential.
Due to consumer becoming desensitized to many TV
commercials, mass media messages are not as effective as they
once were. Developing a loyal following for a web site is
critical and mass media type banners and advertising is may be
effective for web sites if the banners are not intrusive. Building
customer loyalty is essential. Schneider, 2013, figure 4-4, (p.
166) provide an illustration of the relationship between
customer level of loyalty and time.
Technology-enabled Relationship Management is a form of
managing customers relationship with a company when the
company . . . “obtains detailed information about a customers
behavior, preferences, needs, and buying patterns, and uses that
information to set prices, negotiate terms, tailor promotions,
add product features, and otherwise customize its entire
relationship with the customer” (Schneider, 2013, p. 180). This
process is refined into Customer Relationship Management
(CRM). The CRM process is illustrated in figure 4-9 of
Schneider, 2013, (p. 183).
Chapter 4 Marketing on the web
Viral marketing through social media is a departure from the
traditional marketing model that has companies communicating
directly with customers or through an intermediary. Social
media provide a means in which the customers can promote, or

11. demote, products and services from companies on the web by
tagging and connecting to friends and family through social
media. Figure 4-1, (Schneider, 2013, p. 187) illustrates viral
marketing through social media.
Domain selection and positioning within search engines are
critical for potential customers to find your web site and
products on the web. Paid search engine placement varies in
price and can be expensive depending on the name and domain.
Figure 4-14 on page 193 (Schneider, 2013) lists Domain names
that sold for over $2 Million. A more affordable means of
advertising on the web is available through purchasing banner
time for advertising on more popular web sites.
Purchasing, logistics and business processes include many steps
and sequences to complete the business flow from identification
of needs to completing transactions. Figure 5-1 of Schneider,
2013 (p. 210) illustrated the typical business process.
Information systems and the Internet have improved the
efficiency of the business process through enhancing
information systems and Internet based processes through the
implementation of Electronic Data Interchange (EDI). EDI
invokes a set of standards for common business transactions to
make the business process more efficient. See figure 5-5
Schneider, 2013 (p. 219) for an example of common EDI
transactions. Compare the information flow in a paper process
as illustrated in Schneider, 2013 (Figure 5-6 p. 220) with the
Information flow in an EDI process as illustrated in figure 5-7
Schneider, 2013 (p.222).
Chapter 5 Business –to-Business Activities; Improving
efficiency and reducing cost.

12. Electronic marketplaces and portals started in the 1990s with
industry and market specific hub or portals. The specific nature
of these hubs limits the business of the hubs to certain markets.
In the 2000s Internet business grew and so did the need for
more diverse hubs that would align to more than one specific
market (Schneider, 2013). While these portals are also available
in the private sector, Business-to-Business (B2B) portals
provide for an industry consortium market place. Figure 5-13
(Schneider, 2013, p. 235) provides an illustration of the
characteristics of the B2B market.
The prominence of Social Networking is such that it has become
a dominant market venue for an online mobile social society.
The development of Social networking sites, as illustrated in
figure 6-1, Schneider, 2013, (p. 249) underscores the demand
for social media and the response from the technological
community to support. Figure 6-2 Schneider, 2013, (p. 249)
illustrates, essentially, the market available through social
media in that nearly the entire northern hemisphere is connected
via some form of social media.
Chapter 6 Social networking, mobile commerce and online
auctions
Smart phones have changed the marketing scheme by providing
a device that connects consumers to the Internet remotely
providing for a mobile social market. The operating systems

13. that power these devices have evolved as the need for getting
and staying connected to a global social market increases.
Figure 6-5 Schneider, 2013, (p. 256) illustrated the changes in
Smart Phone operating systems market share. Note the decline
of the Black Berry operating system share from 2006 to 2011 as
Black Berry remained more of a business application as did
windows while Android and Apple focused more on the social
connectivity aspect of the market. The social mobile market has
many aspects including Social Networking web sites for
shoppers, Idea-based Social Networking and virtual learning
networks (Schneider, 2013, (p. 251). These mobile devices,
networks and markets represent the third wave in Ecommerce.
Ecommerce has been placed in the consumer’s hands through
the implementation of auction web sites. Web sites such as eBay
solve the most basic of business problems, “How do I get to
market?” Auction webs sits provide the means to open a global
market to anyone with Internet access.
Ethics and laws are mainly a function of culture (Schneider,
2013) and as such, a balance between the culture and the power,
which is essentially a form of control, is necessary to establish
an environment that is legal and ethical in the Ecommerce
world. “Physical geographical boundaries lead to legal
boundaries” (Schneider, 2013, Figurer 7-2 p. 286) and define
the relationship between Power, Effects, Legitimacy and Notice.
Establishing jurisdiction on the Internet is more difficult then in
the actual world as there are no physical or geographical
boundaries on the Internet. Contracts between buyers and
sellers are an essential part of the commerce and Ecommerce is
no exception. Ecommerce Web Sites provides invitations for
offers of merchandise. Adding items to an online shopping cart
is an indication of acceptance of the price and is the beginning
of entering into a legal contract to purchase. When the

14. purchases are finalized and paid for with a credit card or online
secure payment system, the consumer has entered into a contract
to make payment and accept the terms of the sale as indicated
on the web site. Figure 7-4 on page 292 of Schneider, 2013
illustrates the contracting process online for Ecommerce.
Chapter 7 The environment if Electronic Commerce legal,
ethical and tax issues
Protecting copyrights and intellectual property on the Web is
essential as access to the protected information on the web is
pervasive. Web site copyrights are obtained from the
government as filed by the appropriate paperwork to establish
the official legal protection for a given individuals work, web
site content included. Many webs sites proved copy write
information at the bottom of the main page. The copy write
information not only serves to protect the content on the web
site it is also useful in citing the web site information in
academic writing.
A digital form of a watermark also protects intellectual property
such as images and music. The digital watermark “ . . . is a
digital code or stream embedded undetectably in a digital image
or music file” (Schneider, 2013, p. 302). These digital
watermarks are steams identify the legal owner the material.
Online crime includes many of the same crimes that take place
in the physical world such as “ . . . theft, stalking, distribution
of pornography and gambling” (Schneider, 2013, p. 306).
Jurisdiction makes combatting online crime difficult for many
law enforcement organizations as the laws vary by region and

15. culture around the world.
Warfare and terrorism has increased online as the World Wide
Web expands, the access to technology is increasingly less
difficult to obtain and Internet access is now reaching to remote
areas of the world. “The US department of Home Land Security
and international police agencies such as [INTERPOL] are
devoting considerable resources to monitoring terrorists
activities online” (Schneider, 2013, p. 309). The Internet also
has proven to be a formidable communications network for
terrorist activities. Conversely, the Internet has provided a
means to support warfare for the US and its allies as evident
from the use of information systems to conduct a cyber attack
on Iraq during the first Iraq war, Desert Storm (Lewis, 2010).
Ethical business practices are essential online as many online
consumers communicate with each other through the Internet,
social media and mobile devices. As the propensity for online
sales continues to grow, online merchants must adhere to an
ethical code of conduct that provides for a secure enjoyable
online experience. The use of system generated emails based on
user internet activity can be an ethical issue if the uses does not
have the opportunity to either opt-in or opt-out of emails for
products and services. Figure 7-10 page 313 and figure 7-11
page 314 of Schneider, 2013, provide illustrations of the
mechanization of opt-in and opt-out selectable options on a web
site.
Collecting and paying taxes on the web is possible through
software that connects to the Internal Revenue Service (IRS).
When companies establish a connection between “. . . a tax
paying entity and the government . . . [a] nexus [is formed]”
(Schneider, 2013, p. 317). This nexus requires the payment of
state sales tax. This tax is essentially a use tax based on a sales

16. transaction (Schneider, 2013, p. 319). Companies that conduct
business on the web where a nexus is established between the
state government and the business requires the payment of the
use tax by the company and as such, this cost is passed on to the
consumer.
There are many types of computer platforms around the world
connected to the Internet. What makes these connections
possible is “ . . . platform neutrality . . .” (Schneider, 2013, p.
335). Figure 8-1, page 335 Schneider, 2013 illustrates the
nature of the Internet and platform neutrality. The basic
functionality of the Internet is based on the client-server
architecture where HTTP protocol provides for exchanges
between client and server by use of the TCP/IP Internet
protocol. The exchange between a web client and a single web
server is a termed a two-tier network. Exchanges between a web
client and two or more web servers are known as a three-tire
network and are common when linking web users to databases
to provide additional information such as a catalog. Figure 8-2
page 338 and figure 8-3 page 340 of Schneider, 2013 provides
illustrations of the two and three tier web client and web server
exchange processes.
Chapter 8 Web server hardware and software
A majority of Internet software is provided from Apache
[HTTP] web server and Microsoft Internet Information Server
(IIS) (Schneider, 2013, p. 341). Email makes up a large
percentage web usage and spam “(unsolicited commercial e-mail

17. or bulk mail Electronic junk mail” Schneider, 2013, p. 553) has
become a burden to corporations as many resources are used to
deter, detect and eradicate viruses that may accompany the
spam. Schneider, 2013 figure 8-5 page 344 illustrates the
increase over the years of spam as a percentage of companies
emails.
Like Internet service providers, Ecommerce has Internet
providers that cater to the needs of Ecommerce. Commerce
Service Providers (CSPs), Managed Service Providers (MSPs)
and Application Service Providers (ASPs) provide internet
hosting services that are not limited to internet access but also
provide, in addition to Internet access, services that support
Ecommerce.
Basic functions of Ecommerce software include, Catalogs,
Shopping carts, Web services, Enterprise Resources Planning
(ERP) Integration, and Supply chain management. Schneider,
2013, p. 374).
Small and mid-size companies use service providers rather than
building an expensive Internet hosting network of their own.
“Mall-style commerce service provides (CSPs) provide small
business with a Internet connection, Web site creation tools and
little or no banner advertising clutter” Schneider, 2013, p. 388.
The advantage to using these CSPs is the relatively low cost to
establish an Ecommerce presence on the inter net. Figure 9-8
page 389 of Schneider, 2013 provides a summary of estimated
cost for establishing a small store online.
Chapter 9 Ecommerce software

18. Mid to large companies have the resources to invest in Internet
development tools and Ecommerce software that connects to
database systems for catalogs that can be easily maintained
when products or services change or are updated. Some of the
software systems available are Intershop Enfinity, IBM
WebSpere Commerce Professional and Microsoft Commerce
server (Schneider, 2013 pp. 391-392).
Large Business that have an existing information system
infrastructure can benefit from Enterprise-class Ecommerce
software. Enterprise-class Ecommerce software includes
features for linking supply and purchasing functions along with
B2B activities (Schneider, 2013 p. 393). Figure 9-9 of
Schneider, 2013 illustrates a typical enterprise-class Ecommerce
system.
“Computer security is the protection of assets from
unauthorized access, use, alteration or destruction” (Schneider,
2013, p. 410). Understanding the risks involved with computer
security is essential. Figure 10-1 (Schneider, 2013, p. 410),
provides an illustration of the risks an impacts associated with
computer security.
Security for client computers requires the ability to protect the
client “ . . . computer from threats that originate in software
and data that are downloaded to the client computer from the
Internet” (Schneider, 2013, p. 413). Cookies are small files that
identify returning visitors to particular web sites. The cookies
contain private information about the client and the only means
of protecting the client’s information completely is to disable
the cookies. “The problem with this approach is that the useful
cookies are blocked along with the others requiring visitors to
enter information each time they visit the website” (Schneider,

19. 2013, p. 414).
Chapter 10 Electronic Commerce Security
Communication channel security entails security between
communications layers. The Internet is not meant to be secure
(Schneider, 2013) and therefore layers of security must be in
place to keep Ecommerce transactions secure. Threats to
secrecy, integrity, necessity, physical communications and
wireless communications require encryption as a means of
keeping data and information secure. Encryption algorithms
transform “ . . . plan text into cipher text (the unintelligible
string of character) . . . “ (Schneider, 2013, p. 433). The
encrypted text provides for a mathematical pattern that is very
difficult to transcribe and thus, renders the information secure.
This form of security is essential for both physical and wireless
networks.
Payment methods require the secure transfer of information.
Payment cards make up the majority of online payment methods
(Schneider, 2013, figure 11-1 p. 464). Digital wallets provide
means of holding credit card numbers or electronic cash
(Schneider, 2013) and making the credit card number or
electronic cash securely accessible for online purchases.
Stored value cards include Magnetic strip and smart cards.
Stored value cards provide a means of storing information
related to financial accounts that can produce funds when funds
are available. The difference between magnetic strip cards and
smart cards is that the information in a smart card is stored in

20. an encrypted microchip, as magnetic strip cards cannot be
encrypted making smart cards more secure that magnetic strip
cards.
Banking industries provide technologies for secure storage and
transfer of funds and check processing functions. Increased
activity from Mobile banking from smart phones and portable
electronic devices are requiring banks to add services and
security to support these activities. Banks also provide
protection from identity theft.
Chapter 11 Payment Systems for Ecommerce
Planning for Ecommerce requires an understanding of the
elements of project management such as cost of the initiative
(project), the technical aspects of the initiative and the schedule
in which the initiative is to be implemented. Estimating
initiatives cost is best demined by researching similar
initiatives. The benefits of Ecommerce initiatives are
summarized in Figure 12-1, Schneider, 2013, p. 501.
Strategies for developing Ecommerce Web Sites includes
Internal Development that requires the expertise to design,
construct, and manage the project from internal means. This can
include a great deal of risk if the project scope is
underestimated. Outsourcing can mitigate risk by employing the
services of a company that specializes in website development,
has the proper resources available and the experience to
understand the design development and implementation.
Managing Ecommerce implementation requires project
management skills and expertise. Project management software
provides for control of essential aspects of project management
including cost, technical and schedule. Selecting the correct
means of controlling the project upfront will allow for a
comprehensive analysis of the project as the project progresses.

21. Project plans are also essential and should include as a
minimum processes for estimating and controlling cost, staffing,
outsourcing, long-term maintenance and scalability.
Chapter 12 Planning for Electronic Commerce
Lewis, J., A. (2010). Thresholds for cyber war. Center for
strategic and international studies. Available from
http://csis.org/files/publication/101001_ieee_insert.pdf
Microsoft MSDN. (2013). IPv6 Addresses. Available from
http://msdn.microsoft.com/en-us/library/aa921042.aspx
Schneider, G. (2012). Electronic Commerce (10th edition),
Course Technology Cengage learning. Boston, MA
References