Disclaimer: This is part of a third year tertiary project

1. ITSP5.01
Information Systems Principles

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.  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.  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.  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.  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.  Intel sells computer parts to computer sellers like Dell
 http://www.intel.com/

8.  Computer Lounge sells PC components and
systems to customers
 http://www.computerlounge.co.nz/

9.  KBR provides defence, security and other services
to government entities around the world
 http://www.kbr.com/

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.  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.  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.  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.  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.  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.  Default osCommerce home page

17.  Default product information page

18.  Default product ordering page

19.  Default login page

20.  Default delivery information page

21.  Default payment information page

22.  Default order confirmation page

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.  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.  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