E-commerce security is important for online transactions. There are risks of payment card fraud from card issuing banks, merchants and cardholders. To mitigate risks, businesses can use address and card verification systems to detect fraudulent addresses and numbers. They should also monitor for unusual orders and call customers if suspicious. Signing up for anti-fraud services also helps improve security.

1. CHAPTER 1: OVERVIEW OF E-COMMERCE
Concept and
characteristics of E-
commerce
What Is E-
commerce?
– Use of Internet and Web to transact business
– More formally:
Digitally enabled commercial transactions between and among organizations and
individuals
Characteristics – E-commerce market is a market without borders.
– The parties conducting transactions in e-commerce is not in direct contact
with each other. Most transactions conducted through electronic devices.
– E-commerce activities are the participation of at least three entities, which
are indispensable network service providers, certification bodies.
Limitations, benefits
and impact of E-
commerce
Benefits • For society:
– Restoration of habitats.
– Improving the living standards of the people.
– Increased access to products and services of developing countries to
poorer countries.
– Promote the provision of public services.
• For Business:
– Expanding global markets
– Cut down the costs
– Strengthening relations custumers
– Improved distribution system
– Other benefits: facilitates launch new business projects and improve
business reputation, promoting specialization and help SMEs overcome
these disadvantages ...
• For Consumers:
– Offered products and services varied, abundant, exceeding the limit of
space and time.
– Reduced spending, saving time shopping.
– Conditional impact and support each other in the community of e-
commerce business
Limitations  Technical Limitations:
- The reliability and safety of the whole system.
- Internet connection .
- E-commerce servers, tools, software development.
- Combining e-commerce software and other application software.
 Commerce limitations:
- Difficulties in changing consumer habits.
- Laws, policies, taxes have not been finalized.
-Safety and security is not absolute, increasing fraud.
- The number of people involved in e-commerce is not large enough to achieve
advantages of scale.
Impact of E-
commerce
– Altering market nature.
– Impact on production and business operations and administration.
– Especially impact on marketing activities..
Levels and types of
E-commerce
transactions
Levels of E-
commerce
Level 1: I-Commerce: Information commerce
Level 2: t-commerce: Transaction Commerce
Level 3: c-business
c=collaborating, connecting
Types of E-
commerce
transations
 The parties in E-commerce:
– G (Government)
– B (Business)
– C (Consumer)
Main types of E-
commerce
transations
B2B (Business-to-Business)
B2C (Business-to-Consumer
C2C (Consumer-to-Consumer)
The development of
E-commerce in Viet
Overall situation: – E-commerce applications of business achieved good results.
– E-commerce has grown in all localities of the country.
1

2. Nam – Online public services continue to be a positive development.
– Online training has been formed and developed.
CHAPTER 2: E-COMMERCE BUSINESS MODELS
E-commerce
Business Models
Business model Set of planned activities designed to result in a profit in a marketplace
Business plan Describes a firm’s business model
E-commerce
business model
Uses/leverages unique qualities of Internet and Web
Eight Key
Elements of a
Business Model
Value Proposition How does the product or service fulfill customer needs?
E-commerce value propositions:
– Personalization/customization
– Convenience
– Price/No shipping cost
– Quick delivery
– Unparalleled Selection
– Product/service quality
Revenue Model  How will the company earn money
 Major types of revenue models:
 Advertising revenue model- Facebook
 Subscription revenue model –Consumer Reports
 Transaction fee revenue model- ebay
 Sales revenue model – AmazonMP3
 Affiliate revenue model – airlines/car rentals/hotels
Market Opportunity  The intended Marketspace of the company
 Marketspace: Area of actual or potential commercial value in which
company intends to operate
 Realistic market opportunity: Defined by revenue potential in each
market niche in which company hopes to compete
 Market opportunity typically divided into smaller niches
Competitive
Environment
 Who else occupies your intended marketspace?
 Other companies selling similar products in the same marketspace
 Includes both direct and indirect competitors
 Influenced by:
 Number and size of active competitors
 Each competitor’s market share
 Competitors’ profitability
 Competitors’ pricing
Competitive
Advantage
 The special advantages of a firm
 Superior product or cheaper product than competitors
 What makes a product superior?
 Important concepts:
 Asymmetries exist when one competitor has more resources than the
others
 First-mover advantage, complementary resources
 Unfair competitive advantage results from factors that are hard to
duplicate or acquire (brands, natural resources, capital investments)
 Leverage using your vast resources to move in other markets –
leveraging a large customer base
 Perfect markets
Market Strategy  How do you plan to promote your products or services to attract the
target audience
 Details how a company intends to enter market and attract customers
 Best business concepts will fail if not properly marketed to potential
customers.
2

3. Organizational
Development
 The types of organizational structures within the firm necessary to carry
out the business plan
 Describes how firm will organize work
 Typically, divided into functional departments
 As company grows, hiring moves from generalists to specialists
Management Team  “What kind of backgrounds should the company’s leaders have?”
 A strong management team:
 Can make the business model work
 Can give credibility to outside investors
 Has market-specific knowledge
 Has experience in implementing business plans
Categorizing E-
commerce
Business Models
 No one correct way (explained on upcoming slides)
 Text categorizes according to:
 E-commerce sector (e.g., B2B)
 E-commerce technology (e.g., m-commerce)
 Similar business models appear in more than one sector
 Some companies use multiple business models (e.g., eBay)
B2C Business
Models
- E-tailer: Amazon.com, Walmart.com, Dell.com
- Portal: Yahoo.com, msn.com, ZING.vn
- Community Provider: Facebook.com, twitter.com, cyworld.vn
- Content provider: CNN.com, vnexpress.net, bbc.com
- Service provider: VisaNow.com, dropbox.com
- Transaction broker: Hotels.com, monster.com, vietnamhotels.vn
- Market creator: Priceline.com, ebay.com, vatgia.com
B2B Business
Models
 Net marketplaces
 E-distributor
 E-procurement
 Exchange (Alibaba.com)
 Industry consortium
 Private industrial network
 Single firm
 Industry wide
Others EC
Business Models
– Customer-to-business(C2B)
– Business-to-business-to-consumer (B2B2C)
– Customer-to-customer (C2C)
– Business-to-employees (B2E)
– Collaborative commerce (c-commerce)
– E-government
– M-commerce
– F-commerce
CHAPTER 3: BUILDING E-COMMERCE BUSINESS PLAN
Analyzing the
factors affecting
the integration of
e-commerce
Analysis
environmental
The micro-environment: business areas, products, competitors, customers…
The macro-environment : technology, economic factors, political and legal,
cultural, social, geographic ...
The elements inside
and outside the
enterprise
Inside: organizational structure, human resources, products, culture within
businesses ...
Outside: pressure from buyers, suppliers, the role of government, other related
organizations …
SWOT Anlysis
Building e-
commerce
business plan
Identifying the
business premises of
the enterprise
– Business purposes: startup, business reforms under the e-commerce
business model or builds more e-commerce model…
– Business objectives: the number of website visitors, market share,
revenue ...
3

4. – Business areas, products: the group in line with the online business
(products, services), specialized product or combination of products ...
– Markets and customers: domestic, international, target audience (age,
gender, occupation, income)
– Business capabilities: human resources, organizational structure, financial
capabilities, IT infrastructure (Web server, sales software, support services
software, security technology ...)
– Technology Solutions: hire external services or self-designed and
managed ...
 FORMING A BUSINESS PLAN
The basic
components and
requirements of e-
commerce business
plan:
• Strategic objectives
• Business models and revenue
• Make a difference and brand positioning
• Product development and market
• Supply Chain Management
• Implementation plan
• The evaluation criteria
• Risk assessment
Things to note in
building business
plan
• Using the advice of experts in e-commerce
• Must have the participation of business leaders
• Plans and results of research, market analysis, decision to buy / sell and
customer credibility
• Consider cost, price issues
• Considering the human resources, management and training
• Focus on marketing
Assessment and
evaluation:
• Economic – Social perspective : contributing to GDP growth, the state
budget revenues, create jobs, promote the development of other sectors ...
• Investor perspective: safety for capital and financial efficiency, promote the
brand, enhance corporate reputation ...
Identifying e-
commerce
business model
What is e-commerce business model?
Eight key elements of an e-commerce business model
The typical e-commerce business models
Implementing e-
commerce
activities
CHAPTER 4: E-COMMERCE INFRASTRUCTURE
The type of
computer
networks
LAN o LAN (Local Area Network):
– Is the network of computers are connected together within a small range.LAN
is commonly used within the office, computer room, school ...
– Lets have more access on a broadband connection.
– Administration is relatively simple.
– LAN models:
 Client/ Server model:
4

5. One or more computers act as provide resources and services to the network (Server)
The remaining computers will use the resources and services provided by Server
(Client)
• Peer-to-peer model:
Is a group of computers connected to each other and have the authority handled equally
well as requirements.
Self each user will manage resources on your local computer without an administrator.
MAN MAN (Metropolitan Area Network): Connect LANs through various transmission
media within a city or a nation.
WAN WAN (Wide Area Network): As networks connect computers on a large geographical
area. WAN can be connected two or more LANs are far apart, can also be connected to
the MAN network between cities, nations.
The concept of
networking with
organizations
Intranet Exclusive internal network of an organization, on which to run those applications only
for the organization itself
Extranet Intranet + allow partners outside the organization access.
THE INTERNET Internet IAP - Internet Access Provider
ISP (Internet Service Provider)
ICP (Internet Content Provider)
PSTN (Public Switched Telephone Network)
Internet – TCP/IP
protocol
– TCP (Transmission Control Protocol):
Establishes connections among sending and receiving Web computers
Handles assembly of packets at point of transmission, and reassembly at receiving end
– IP (Internet Protocol):
Provides the Internet’s addressing scheme and determine the route to transfer
information from source to destination
IP addresses và
Domain Names
 IPv4:
Is a 32-bit number - the only Internet address to determine the location of the device on
the network.
IP address form: X.X.X.X (X has a value from 0 to 255)
Example: 192.168.1.65
 IPv6:
Is a 128-bit numbers - expressed as hexadecimal clusters separated by a ':'
128-bit addresses, able to handle up to 1 quadrillion addresses (IPv4 can handle only 4
billion)
Example: 2001:0db8:0000:0000:0000:ff00:0042:8329
 Domain Names:
Is the only name on the Internet to express their own name an organization or an
individual. It is understandable that the name of the computer on the Each domain
name corresponds to a numeric IP address to locate a computer on the network
Classify:
Classification by level: the top-level domains (.com, .org, .vn), second-level domain
names (.edu.vn, .abc.com), 3-level domains (.ctu.edu.vn, .thanhnien .com).
Classified by sectors: commercial (.com), education (.edu.vn), government (.gov.vn),
organizations (.org) .......
Classification by geographic location: .vn Vietnam (.vn), United State (.us), Canada
(.ca) ......
Cloud Computing Firms and individuals obtain computing power and software over Internet. Example:
Google Apps
Fastest growing form of computing
Radically reduces costs of:
– Building and operating Web sites
– Infrastructure, IT support
– Hardware, software
The Mobile
Platform
In a few years, primary Internet access will be through:
– Tablets
Supplementing PCs for mobile situations
– Smartphones
5

6. Disruptive technology: Shift in processors, operating systems.
33% of all cell phones
E-COMMERCE
WEBSITE
Functions and
classify
 Function:
Gallery: introduce the information, images, products and services of the business.
Monitoring and management: goods, transaction information, prices, customers, orders,
billing; delivery ...
 Classify:
Providing information Website
Interactive Website
Trading Website
Cooperation Website
Construction Steps 1. Domain Registration and Hosting
2. Create and manage content Website
3. Website design
4. Construction, testing and maintenance of Website
5. Promote Website
CHAPTER 5: PAYMENT IN E-COMMERCE
Introduction
Payment
Payment
methods
Online payment: the whole process of payment will occur on the network
Offline Payment: traditional payment
Purchasing
process with
payment
Shopping Cart The software automatically recorded orders and calculate the amount that customers pay.
Payment
gateway
A software program transfer data transactions from the seller website to the payment credit card
center.
6

7. Merchant
account
Special account allows merchants to receive online payments from customers.
Conditions:
– The compatibility of the account: the ability and time to receive money from accounts
– Compatibility with Website: server, shopping cart software, payment services, and
Merchant account must be synchronized.
– Discount rate: transaction fees, subscription fees, administrative fees
PSP – Payment
Service
Provider
 A trusted third-party, providing connectivity services seller's e-commerce system with an
appropriate payment bank.
 PSP must be registered with the card organizations which they support.
E-commerce
Payment
Systems
 Credit cards
42% of online payments in 2013 (United States)
 Debit cards
29% online payments in 2013 (United States)
 Limitations of online credit card payment
Security, merchant risk
Cost
Social equity
7

8. How an Online
Credit
Transaction
Works
Alternative
Online
Payment
Systems
 Online stored value systems:
Based on value stored in a consumer’s bank, checking, or credit card account
Example: PayPal
 Other alternatives:
Amazon Payments
Google Checkout
Bill Me Later
WUPay, Dwolla, Stripe
Mobile
Payment
Systems
Use of mobile phones as payment devices established in Europe, Japan, South Korea
Near field communication (NFC)
- Short-range (2”) wireless for sharing data between devices
Expanding in United States
- Google Wallet: Mobile app designed to work with NFC chips
- PayPal
- Square
Digital Cash
and Virtual
Currencies
Digital cash Based on algorithm that generates unique tokens that can be used in “real” world
Example: Bitcoin
Virtual
currencies
Circulate within internal virtual world
Example: Linden Dollars in Second Life, Facebook Credits
Electronic
Billing
Presentment
and Payment
(EBPP)
Online payment systems for monthly bills
50% of all bill payments
Two competing EBPP business models:
- Biller-direct (dominant model)
- Consolidator or 3rd
party like your bank
Both models are supported by EBPP infrastructure providers
Vấn đề xử lý
thẻ tín dụng
Xử lý tức thời: bên bán xử lý ngay khi nhận được thông tin tín dụng phía người mua  Rắc rối
trong tranh chấp sau thanh toán, tốn kém trong việc mua thiết bị.
Xử lý theo lô: xử lý theo định kỳ (theo thời gian, số lần giao dịch, số tiền)
RISKS AND
MITIGATE
RISKS IN
PAYMENT
Risks of
payment card
- Card issuing bank: the cardholder uses than quota allows, give your card to someone
else to use abroad, report the loss but still use the card, using fake cards ...
- Bank payments: Errors in licensing, does not provide timely lists Bulletin ...
- Card acceptance place: insufficient detection expired card, accept overpayment, fix the
amount on the bill ...
- For cardholders: the loss, revealing the PIN ...
MITIGATE
RISKS IN
- Use the address detection systems AVS (Address Verification System) to detect fraud in
the transaction address (billing address).
8

9. PAYMENT - Use the test card on CVN (Card Verification Number) detection of fraudulent credit card
numbers.
- Shipping address and billing address must match each other.
- Beware of unusual orders.
- Call the customer if any doubt.
- Disclosure security system
- Signed to 1 anti-fraud services
CHAPTER 6: E-COMMERCE SECURITY
Overview of E-
commerce
security
E-commerce
security
- The set of policy, processes, activities.
- Ensure that the e-commerce transactions be implemented fully and promptly, to
ensure usability, benefit to all who are engaged in e-commerce.
- Safety is always only approximate.
What needs
protecting?
Data
Resources
Brand
Risk classification
in EC
The risk that accidents, incidents beyond the control of people and caused damage to the
parties involved in the process of conducting transactions in e-commerce
Risks are divided into 4 groups:
 Risk data
 Risk technological
 Risk procedural and transaction processes of the organization
 Legal risks and technological standards
Dimensions of E-
commerce
security
Data Integrity Ensures that info sent and received has not been altered by unauthorized party
Authentication Ability to identify the person’s identity with whom you are dealing with over the
internet
Nonrepudiation Ability to ensure that participants do not deny (repudiate)
Reliability/
privacy
Authorized to be seen by those who should view it
Ability to control who sees your info
Availability E-commerce site functions as intended
Security Threats
in E-commerce
Environment
The common types
of attacks
Direct attacks
Using malicious programs such as viruses, worms, macros, Trojans, adware, spyware ...
taking advantage of an error or OS application programs to steal credit card numbers,
passwords of customers.
Example: Virus, Trojan, Worm, Spyware
Cheat: Do not admit, deny what was transactions.
Phishing Attacks: A deceptive practices in order to steal information, transaction accounts
customers or business, by sending false information, making the user misconceptions and
provide the account information.
Sniffer: Sniffer is a form of eavesdropping program, monitoring the movement of
information across the network.
 Email snooping
 Keylogger
 Data packet sniffing: Man In Middle
Deny of service attack: DoS, DDoS, DRDoS:
DoS: Machine Attack transmitted deformed requirements, many requests makes
server refused to serve
DDoS: is a type of DOS attack where multiple compromised systems, which are
often infected with a Trojan, are used to target a single system causing a Denial of Service
(DoS) attack.
DRDoS: Distributed Reflection Denial of Service (DRDoS), a type of attempt to
9

10. disrupt a computer network
Social network security issues
Attack from internal business:
- The threat stems from the members working in the business.
 Cause: subjective + objective
Hackers and other
malicious
programs
Source Routing: Hacker setup your computer into the router.
ICMP flooding: send large volumes squeeze packet transmission rate.
ICMP redirect: altering the routing table computer system.
Segment IP: IP packet error segmented so that total> 65536 bytes.
IP address spoofing: borrow the IP address of the other computer.
Classification
attacker
Passers: whether to break into network systems is one form of entertainment.
Vandals: intentional sabotage the system.
Who scored: want to assert themselves through these new types of attacks, the number of
systems have been infiltrated.
Espionage: stealing data to serve for the purpose of sale or exchange.
LIMIT RISKS IN
E-COMMERCE
Encryption: Encryption: altering plain text so that it cannot be read by anyone other than the sender &
receiver
- Symmetric key both sender and receiver use the same key to encrypt and decrypt
the message. The key is sent over a secure line or exchanged in person.
- Public Key (Asymmetric key) there are two mathematically related keys, a public
key and private key. Private key key secretly by owner and public key
disseminated to the public. Both keys are used to encrypt and decrypt the
message.
Digital signature - Digital signature is a signed cipher text sent over the internet.
A valid digital signature gives a recipient reason to believe that the message was created
by a known sender, that the sender cannot deny having sent the message (authentication
and non-repudiation), and that the message was not altered in transit (integrity).
Securing channels
of communication
SSL (Secure Socket Layer): a secure negotiated session is a client server session in which
the URL of the requested doc, its contents, and cookies are encrypted through a series of
communication handshakes between computers. A unique symmetric encryption session
key is chosen for each session
Digital certificate (DC) issues by trusted 3rd
party known as certification authority that
contains (the subject name, public key, digital cert serial #, exp date, issuance date and
digital signature)
- There are various types of certs (personal, institutional, web server, software publ,
and Cas)
- Verisign, Post office, Fed Reserve issue certs
Firewalls are hard/software that filters comm packets and prevent unauthorized access
Proxy servers are software servers handle comm by acting as a spokesperson and body
guard for the organization. To local computers, proxy servers are known as a gateway, but
to external servers known as mail server. Proxy servers sit betw users and back end
systems. They may be used to restrict access by employees.
10

11. Protecting
networks and
customer
computers:
The control of the operating system: provide a name and password when you want to
access the system.
Install anti-virus software: simple methods and least costly.
Intrusion detection system: detection and identification tools that hackers commonly use,
detect suspicious activity.
CHAPTER 7: E-MARKETING
The concept and
benefits of e-
Marketing
Concept: Electronic marketing is understood as marketing activities are conducted via and
telecommunication networks.
Benefits: Global marketing
Shorten the distance
Save time
Cost savings
Marketing E- Marketing
Using mass
media
Using the Internet and digital devices
Limited space Unlimited space
Take a long time Respond immediately
Do not choose a
specific audience
Direct access to a specific audience
High cost Low cost and can control cost
Difficult to store
information
Easy to store information
4P IN E-
MARKETING
Product:
- Creating products / services such as digital products, online services.
- Adding value to the product / service traditions such as product
differentiation, online auctions, online customer support…
Price:
- Customers get the information better.
- Cut costs, the new transaction forms  change price policy.
- Diverse and modern forms of payment.
Place:
- Improved distribution system, coordination between the members of the
distribution channels through the Internet, Web ...
- Save time, costs for delivering digital products.
Promotion
- Advertising: Logo, website, banner ads, e-zine, newsletter
- Sales Promotion: Discounts, gifts, cross-selling products with discounts,
bundled services …
- Public Relations: activities to crowd or protected images, the product of the
company before the community.
• Workshops (over the network), sponsored electronic newsletter, the
agent program ...
- Direct Marketing: Website, Email, Fax…
11

12. - Personal Selling: The auto answer email systems, chat room, FAQ…
Building e-
Marketing plan
1. Situation analysis
2. E-marketing strategy planning
3. Objectives
4. E-marketing strategy
5. Implementation plan
6. Budget
7. Evaluation plan
e-Marketing
Methods
Search engine
marketing
The search engine looking for the Web site according to the topics identified.
- SEM (Search Engine Marketing)
- SEO (Search Engine Optimization)
- PPC (Pay Per Click)
Social Media New media environment based on Web 2.0 support collaboration, post content, share
 connect people together.
Example: Forum, Blog, Flickr, Youtube, Social network (facebook, myspace),
Wikipedia…
Email Marketing 1. Email advertising: newsletters, ad messages, introduce products / services to
entice customers
2. Email transaction: order confirmation, payment, shipping notices ...
3. Email customer retention: keeping in touch with customers, survey after
purchase, offer promotions and price cuts …
Pros: the ability to navigate and highly customizable, cost-effective, measurable.
Cons: the number of businesses and individuals that use email marketing is increasing,
being marked as spam, requiring ingenuity and differences with opponents
Remarketing
Online advertising In this method, companies buy advertising space on the site are owned by other
companies in order to attract consumers.
12

13. Such as:Banner advert; Pop - ups and Pop – unders; Wallpaper advert; Floating advert;
In text advert; Sponsor a Website or an e-newsletter
Affiliate Marketing Build agents or online sales association based on a percentage agreed upon
commission.
 Pros: costs are paid according to effective marketing, sales and brand
development to grow the same time, there are very few barriers to entry for
owners and agents.
 Cons: lose control of your brand, very few regulations or contracts.
PR online A maximum of benefit mentioned image, brand, product or company's website on third
party websites that target customers can visit.
• Communication with the online media (journalism)
• Exchanging links and editing (anchor text)
• Blogs, forums and RSS (Really Simple Syndication)
• Create rumors (buzz)  Viral marketing
• Management "reputation" online
Forms of fee Flat Rate (mức phí cố định cho một thời gian nhất định)
CPM (Cost Per Thousand Impressions - tính phí theo số lượt quảng cáo được xem)
CPC (Cost Per Click - trả tiền theo số click)
CPA (Cost Per Action hay còn gọi là Pay Per Lead, tức trả tiền theo hành động người
dùng, như mua hàng, đăng ký làm thành viên hoặc download phần mềm).
Notes in e-
Marketing
Implementation principles of E-marketing
 Message content
 Professionalism
 Frequency Marketing
 Cost and efficiency
Things to avoid in the implementation e-Marketing:
• Using free or cheaply Web Hosting service.
• Web page contains too many graphics, java, music
• No regular keep in touch customers and are not interested in
feedback from customers.
• Not exploited effectively use the tools of the Internet and other
support (eg. managing email systems ineffective).
• Underplayed the role of Marketing or Strategic Marketing
inappropriate.
CHAPTER 8: Ethical and Legal in E-commerce
Ethical Issues
in E-
Commerce
Privacy and
protection of privacy
- Privacy is a fundamental right of individuals to be free from supervision or intervention
from individuals or organizations, including government.
- VN 2014 80% now have policies to protect personal information (73% in 2013)
- Personal information may be collected by many different forms!
- 5 business principles to follow to ensure privacy for ustomers
• Prior Notice
• Consent
• Access
• Integrity / safety
• Coercive / compensation
Intellectual property
and copyright
Intellectual property is intangible assets by an individual or company created and protected
as copyright, trade secret or patent
1. Copyright is a statutory fixed contract allows the creation of intellectual property
ownership in 28 years.
2. Trade secrets as intellectual achievements such as the business plan, the company's
secrets.
3. The patent is a document that allows the holder to legally invention has the
monopoly for 17 years.
Fraud and protect The common form of fraud in e-commerce:
13

14. Consumers - Seller 1. Online auction cheat
2. Stocks on the internet deception
3. The other type of financial deception: business opportunities ghost, fake investment
opportunities, raising capital ...
4. The other type of deception in e-commerce: goods and services received poor
quality, late, to pay the amount the seller to bear
Advice for consumers:
1. Brand reputation, the right website
2. Check the address, contact information if website stranger
3. Track information on online.gov.vn seller
4. Survey, quality testing of service
5. Compare prices of the same type
6. Imagine the scenario occurs
7. Rights of the buyer
Seller prevent the following issues:
1. Refuse orders
2. Customers resell the software or copyrighted digital products
3. Pay less than the value provided
4. Abusing names
E-commerce
Legally in
Viet Nam
Model Law on E-
commerce
UNCITRAL
1996: United Nations Commission on International Trade Law (UNCITRAL) has prepared a
Model Law on E-transactions
Forming the regulations form for the recognition of the legal validity of data messages
Model Law can be used as a reference for countries in the process of building its e-
commerce law
3 factors to ensure trust and transparency:
- Clarity: website sellers must have the terms to buy, sell clear
- Reliability:
• Information published: truthful news
• Electronic transactions: safety technology
• operating system: do not cause errors
• authentication problems: such as electronic signatures
- Confidentiality and privacy: must be respected and secure information important
as credit cards, email, phone, customer ...
Overview of the legal
basis for e-commerce
in Vietnam
– Before 2000, the term e-commerce is still new in VN
– 1/2002, the Ministry of Trade is responsible for building e-commerce Ordinance to
establish a comprehensive legal basis for e-commerce
– 09/15/2005 Prime Minister signed the "decision approving the Master Plan for e-
commerce development for 2006-2010" (222/2005 / QD-TTg)
– "Electronic Transactions Law" by Eleventh National Assembly, 8th session on
29/11/2005
– 09.06.2006 The Prime Minister issued the "Decree on e-commerce" (57/2006 / ND-
CP)
– And decrees and circulars instructed otherwise, ...
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15. Introduction E-
Transactions Law
The nature of the law on e-commerce is ...
 Recognition of electronic transactions exist legally as traditional
transactions (written)
The effect of a law on e-commerce
 Create confidence for the user -> encourage them to participate in e-
commerce
Legal basis resolve disputes
29/11/2005 laws were passed, there are 8 chapters and 54 articles.
Main content:
 The legal validity of data messages;
 The legal validity of electronic signatures and electronic authentication
market;
 Electronic contracts;
 E-transactions of state agencies;
 Confidential, safety and security;
Law recognizes the legal validity of data messages
 Recognition of electronic signatures have legal validity as a handwritten
signature.
 To ensure safety for electronic signatures, responsibilities, obligations of
electronic signatures, the recipient
Electronic signature authentication (S):
 Electronic signature certification service activities
 The content of the e-certificate
 Rights and obligations of organizations and service providers of electronic
signature certification
 The conditions for service providers of electronic signature certification
The documents
guiding the
implementation of
laws
Decree on Electronic Commerce (52/2013 / ND-CP)
- Was issued on 16.5.2013
- Specific regulations on the operation of e-commerce as well as the management of
the state in this area,
• The prohibited acts in e-commerce
• The procedures for registration and notification when setting
sales website or e-commerce services organizations, traders and
individuals
• Responsibilities of organizations, merchants and individuals
engaged in e-commerce
• E-commerce portal www.online.gov.vn
Decree on sanctioning of administrative violations in the field of trade (185/2013 / ND-CP)
- Was issued on 15.11.2013
- Specific regulations on the handling of administrative sanctions for violations in the
field of e-commerce under Decree 52/2013 from Article 81 to 85
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16. • Doubling the fine level organizations and traders
• A fine from 5-30 million: Set up e-commerce websites do not
announced
• A fine of between 40-50 million: fraud actions on e-commerce
websites
• Additional: 6-12 months suspended operations, withdraw the
domain name ".vn"
Joint Circular No. 10/2012/TTLT-BCA-BQP-BTP-BTT&TT-VKSNDTC-TANDTC
– Guidance applicable regulations of the Criminal Code of some criminals in the field
of information technology and telecommunications
– The instructions on the order, procedures and specify the level of damages
constitute penalty range helps solve the most basic problems so far in dealing with
crimes of a complex field and crime nontraditional as e-commerce
Electronic
Contract
Electronic contract is a contract is set up as a data message under the provisions of the Law
of electronic transactions. Has the following characteristics:
 Shown with: Data message
 Electronic devices: create, send and archive
 Signed wide range
 Technical complexity
 Governing Law isn’t systematic and detailed
CHAPTER 9: Building an E-commerce Presence: Web Sites, Mobile Sites, and Apps
E-commerce Presence
Map
Building an E-
commerce Site:
A Systematic
Approach
Most important management challenges:
- Developing a clear understanding of business objectives
- Knowing how to choose the right technology to achieve those objectives
Pieces of the Site-
Building Puzzle
Main areas where you will need to make decisions:
- Human resources and organizational capabilities
Creating team with skill set needed to build and manage a successful site
- Hardware/software
- Telecommunications
- Site design
The Systems
Development Life
Cycle
Methodology for understanding business objectives of a system and designing an appropriate solution
Five major steps:
• Systems analysis/planning
• Systems design
• Building the system
• Testing
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17. • Implementation
System
Analysis/Planning
Business objectives:
- List of capabilities you want your site to have
System functionalities:
- List of information system capabilities needed to achieve business objectives
Information requirements:
- Information elements the system must produce in order to achieve business objectives
Systems Design:
Hardware and
Software Platforms
System design specification:
- Description of main components of a system and their relationship to one another
Two components of system design:
- Logical design: Data flow diagrams, processing functions, databases
- Physical design: Specifies actual physical, software components, models, and so on
Build/Host Your Own
vs. Outsourcing
Outsourcing: Hiring vendors to provide services involved in building site
Build own Build your own requires team with diverse skill set; choice of software tools; both risks and
possible benefits
Host own Hosting: Hosting company responsible for ensuring site is accessible 24/7, for monthly fee
- Co-location: Firm purchases or leases Web server (with control over its operation), but server is
located at vendor’s facility
Testing,
Implementation, and
Maintenance
Testing
• Unit testing
• System testing
• Acceptance testing
Implementation and maintenance:
• Maintenance is ongoing
• Maintenance costs: Similar to development costs
• Benchmarking
Factors in Web Site
Optimization
Simple vs. Multi-tiered
Web Site Architecture
System architecture
- Arrangement of software, machinery, and tasks in an information system needed to achieve a
specific functionality
Two-tier
- Web server and database server
Multi-tier
- Web application servers
- Backend, legacy databases
Web Server Software Apache
• Leading Web server software (52% of market)
• Works with UNIX, Linux operating systems
Microsoft’s Internet Information Server (IIS)
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18. • Second major Web server software (20% of market)
• Windows-based
Site Management
Tools
Basic tools
- Included in all Web servers
• Verify that links on pages are still valid
• Identify orphan files
Third-party software for advanced management
• Monitor customer purchases, marketing campaign effectiveness, and so on
• WebTrends Analytics 10, Google Analytics
Application Servers Web application servers:
– Provide specific business functionality required for a Web site
– Type of middleware
• Isolate business applications from Web servers and databases on the back end
– Single-function applications being replaced by integrated software tools that combine all
functionality needed for e-commerce site
E-commerce Merchant
Server Software
Provides basic functionality for online sales
- Online catalog
• List of products available on Web site
- Shopping cart
• Allows shoppers to set aside, review, edit selections, and then make purchase
- Credit card processing
• Typically works in conjunction with shopping cart
• Verifies card and puts through credit to company’s account at checkout
Web Services and
Open-Source Options
Options for small firms
- Hosted e-commerce sites
• Offer site building tools and templates
• Example: Yahoo’s Merchant Solutions
- Open-source merchant server software
• Enables you to build truly custom sites
• Requires programmer with expertise, time
The Hardware
Platform
Hardware platform:
- Underlying computing equipment needed for
e-commerce functionality
Objective:
- Enough platform capacity to meet peak demand without wasting money
Important to understand the factors that affect speed, capacity, and scalability of a site
Personalization Tools Personalization
- Ability to treat people based on personal qualities and prior history with site
Customization
- Ability to change the product to better fit the needs of the customer
Cookies
- Primary method to achieve personalization
Developing a Mobile
Web Site and Building
Mobile Applications
Three types of m-commerce software
- Mobile Web site
• Responsive Web design
- Mobile Web app built for a mobile web browser of a smart device (phone, tablet)
- Native app designed specifically for mobile device
Planning and building mobile presence
- Use systems analysis/design to identify unique and specific business objectives
Developing a Mobile
Web Presence
Design considerations
- Platform constraints: Smartphone/tablet
Performance and cost
- Mobile Web site: Least expensive
- Mobile app: Can utilize browser API
- Native app: Most expensive; requires more programming
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