This document summarizes the key topics covered in an introduction to e-commerce class. It outlines the session objectives, assignments due, and discusses various aspects of developing e-commerce systems including the software development lifecycle, security considerations, online payment processes, and tools for ensuring website performance and security. The instructor engages students in exercises and discussions around these topics.

1. Management 265
Introduction to E-Commerce
Nicholas A. Davis
Session Two
09/22/2009

2. Objectives
• Software development lifecycle
• Build vs. buy decision
• Considerations in choosing appropriate hardware
and software
• Considerations for monitoring and improving
website performance
• Identify key security threats to e-commerce
• Describe tools used to ensure security
• Explain online payment processes
• Describe features of bill presentment and
payment

3. Assignments Due Today
• Read chapters 4 and 5 in the textbook
• Submit case study analysis
• Discuss an article related to cutting edge
technology used in e-commerce
• Submit ISP analysis
• Develop action plan for e-commerce paper

4. ISP Analysis
• Contact local ISP: Charter, TDS, AT&T
• Dialup, Cable (broadband), DSL
• Features
• Benefits
• Costs
• Drawbacks

5. Group Exercise
• Select a website where you like to shop
online
• You are in charge of developing a new e-
commerce website for this company
• Draw a diagram representing the System
Development Lifecycle

6. System Development
Lifecycle
• Systems Analysis/Planning
• Systems Design
• Building the System
• Testing
• Implementation/Service Delivery
• Let’s examine each

7. Best Practices – Systems
Analysis
• What do we want to do with e-commerce
and what can it do for our business?
• Let business decisions drive the
technology
• Identify objectives and then identify
technical functionality to meet those
objectives
• The real difference in planning for and e-
commerce store vs. a retail store

8. Best Practices – System
Design
• System design specification – simply a
description of the main components
• Logical Design is the data flow
• Physical Design translates the logical
design into physical components

9. Best Practices – Build vs.
Buy
• Outsourcing means that you hire an outside
vendor to provide services
• Lately, outsourcing has become a touchy subject,
a more politically correct term is “Co-Managed”
• Build: Out of the box, benefits, drawbacks
• Host: Benefits, drawbacks
• Build and Host
• Class’s opinion?
• Instructor’s opinion!

10. Best Practices - Testing
• Unit Testing – each module
• System Testing – everything together
• Acceptance Testing – Internal AS WELL as
external facing testing is important.

11. Best Practices -
Implementation
• Monitor
• Adapt
• Maintain
• Expensive!
• Benchmark to competitors: Speed, Quality,
Design, Pricing, Promotions, Keeping
Current

12. Software and Platform
Selection Considerataions
• Operating System – Commercial vs. Open
• Commercial benefits – More refined, mature,
supported
• Commercial drawbacks – Higher purchase cost,
more well known to hackers, may be less
robust….Less so currently
• Open Source benefits – cheaper (or free), lesser
known to hackers, may be more robust
• Open Source drawbacks – Less user friendly
(requires more expertise), little or no support, less
mature in some areas, so SLA available

13. E-Commerce Software Tools
Site Management Tools
• Identify dead links on your site
• Identify orphan files
• Traffic patterns

14. Dynamic Page Generation
Tools
• Original web pages had static content
• Webpage contents are now often stored as
objects in a database
• The advantage of modern architecture is
dynamic, user specific page generation
• Open Database Connectivity standard
(ODBC), means that a web server can
connect to virtually any backend database,
regardless of vendor

15. Discussion
• System Development Lifecycle
• Buy vs. Build decision making
• Software and Platform selection process
• E-commerce software tools

16. E-Commerce Security

17. E-Commerce Security
Threats
• Malicious code – such as SQL injection
• Virus: replicate file to file and deliver a
payload
• Worm: replicate computer to computer
• Trojan Horse: looks harmless, but isn’t
• Bot: waits and then executes commands
received from an external source, making
your computer a “zombie”

18. E-Commerce Threats
• Spyware, browser parasite is a form of
spyware
• Malware
• Phishing

19. E-Commerce Threats
• Internal staff
• Contractors
• Janitorial services
• Third party business partners

20. Class Exercise
• What do you believe are the major threats
to e-commerce?
• Which solutions can help mitigate these
risks?

21. Class Article Discussion
• Describe the article you found in summary
• Describe a leading edge technology that
may change e-commerce
• How will it change?
• Will it make it better or worse from the
viewpoint of the consumer and the service
provider?

22. E-Commerce Function Paper
• Introduce the company
• Introduce the industry sector
• Introduce the corporate website
• Identify the company mission and vision
• Identify methods used to create value for
its customers
• Describe the web application and function
being analyzed

23. E-Commerce Function Paper
(More Detail)
• Analyze the corporate website application
and describe the benefits to the
organization
• Critique the content, context and
infrastructure of the website from the
customer perspective
• Provide an overall critique of the website,
including a SWOT analysis
• Make recommendations for improvement

24. Class Exercise
• Have you changed your shopping and
banking habits over the past five years?
• Do you shop more online than you used
to?
• Do you use and trust PayPal? 1 to 10 scale
• What is your confidence level?

25. Payment Systems
• B2B = Business to Business
• B2G = Business to Government
• C2C = Consumer to Consumer
• G2B = Government to Business
• G2C = Government to Citizen
• C2B = Consumer to Business

26. B2B
• Business-to-business (B2B) describes commerce transactions
between businesses, such as between a manufacturer and a
wholesaler, or between a wholesaler and a retailer. Contrasting terms
are business-to-consumer (B2C) and business-to-government (B2G).
• The volume of B2B transactions is much higher than the volume of
B2C transactions. The primary reason for this is that in a typical
supply chain there will be many B2B transactions involving
subcomponent or raw materials, and only one B2C transaction,
specifically sale of the finished product to the end customer. For
example, an automobile manufacturer makes several B2B
transactions such as buying tires, glass for windshields, and rubber
hoses for its vehicles. The final transaction, a finished vehicle sold to
the consumer, is a single (B2C) transaction.

27. B2G
• Business-to-government (B2G) is a derivative of B2B
marketing and often referred to as a market definition of
"public sector marketing" which encompasses marketing
products and services to government agencies through
integrated marketing communications techniques such as
strategic public relations, branding, marcom, advertising,
and web-based communications.
• B2G networks allow businesses to bid on government
RFPs in a reverse auction fashion. Public sector
organizations (PSO's) post tenders in the form of RFP's,
RFI's, RFQ's etc. and suppliers respond to them.

28. C2C
• Consumer-to-consumer (C2C) (or citizen-to-citizen) electronic
commerce involves the electronically-facilitated transactions between
consumers through some third party. A common example is the
online auction, in which a consumer posts an item for sale and other
consumers bid to purchase it; the third party generally charges a flat
fee or commission. The sites are only intermediaries, just there to
match consumers. They do not have to check quality of the products
being offered.
• This type of e-commerce is expected to increase in the future
because it cuts out the costs of using another company. An example
on cited in Management Information Systems, is for someone having
a garage sale to promote their sale via advertising transmitted to the
GPS units of cars in the area. This would potentially reach a larger
audience than just posting signs around the neighborhood.

29. G2B
• Government-to-Business (abbreviated
G2B) is the online non-commercial
interaction between local and central
government and the commercial business
sector, rather than private individuals
(G2C). For example http://www.dti.gov.uk
is a government web site where
businesses can get information and advice
on e-business best practices

30. G2C
• Government-to-Citizen (abbreviated G2C)
is the online non-commercial interaction
between local and central Government and
private individuals, rather than the
commercial business sector G2B. For
example Government sectors become
visibly open to the public domain via a Web
Portal. Thus making public services and
information accessible to all. One such web
portal is Government Gateway.

31. • Consumer-to-business (C2B) is an electronic commerce business
model in which consumers (individuals) offer products and services to
companies and the companies pay them. This business model is a
complete reversal of traditional business model where companies
offer goods and services to consumers (business-to-consumer =
B2C).
• This kind of economic relationship is qualified as an inverted business
type. The advent of the C2B scheme is due to major changes:
• Connecting a large group of people to a bidirectional network has
made this sort of commercial relationship possible. The large
traditional media outlets are one direction relationship whereas the
internet is bidirectional one.
• Decreased cost of technology : Individuals now have access to
technologies that were once only available to large companies
( digital printing and acquisition technology, high performance
computer, powerful software)

32. Class Exercise
Draw and discuss diagrams
• 5.9, 5.10, 5.11
• Pages, 284, 287, 288 in textbook

33. Class Discussion
• Protecting privacy and intellectual property (encryption
and digital signing)
• Internet Protocols (http vs. https) Is https safe enough
(Hint, think about the ENTIRE system, including data in
TRANSIT as well as data at REST)
• Tools to ensure Internet security (Hint, host based tools
such as AV and Firewalls, Intrusion Detection, Intrusion
Prevention, Honeypots, Physical Security, Employee
training, Social Engineering
• Functional requirements for conducting financial
transactions on the web (Hint, Authentication,
Authorization, Securing data in transit, Securing data in
storage, data retention policies, PCI compliance

34. PayPal Case Study Analysis
Discussion
• What is the value propositions that PayPal
offers consumers? How about Merchants?
• What are some of the risks of using PayPal
when compared to credit cards and debit
cards?
• What strategy would you recommend that
PayPal pursue in order to maintain its
growth over the next five years?
• Why are cell phone networks a threat to
Paypal’s future growth?

35. Wow, That Was a Lot!
• My favorite area of e-commerce is security!
• Questions, comments, further discussion?
• Assignments for next session:
• Read chapters 6 to 8 in the textbook
• Submit Ethical Implications paper
• Select an article to discuss in class that involves
ethical or legal issues in e-commerce
• Project team, case study----you pick!
• Work on your e-commerce function paper

36. Additional Concerns