Midterm Review

1
Midterm Review

• Chapter 1-3, 5, 6

2
Ch -1 learning objectives

• Identify the components of E-Business
• Describe how E-Business fits into the traditional
  environment
• Explain the significant reasons why businesses
  enter into e-business

3
Identify the components of e-business. (ch-1)

• Classified into the buy-side and sell-side built
  around the supply chain
• Other components include Supply chain
  management, enterprise resource planning

4
Identify the components of e-business. (ch-1)

• Underlying all these systems is business
  intelligence which involves the gathering of data
  useful for business strategy

5
Describe how e-business fits into traditional
business environment

• E-Business provides
• A new sales channel
• A chance to streamline the supply chain
• Better productivity
• Faster time to market
• Lower costs
• Businesses often have to adopt new strategies
  that transform their business model

6
More significant reasons why businesses enter
into e-business

• Increase sales (market reach)
• Improve customer service
• Reduce costs by streamlining the supply chain
• May be forced to due to competitive pressure
• Many of the security concerns have been addressed

7
Chapter 02 Business Models and Strategies

• Define e-business models and strategy
• Describe how e-business models reflect strategy
• Identify the components of e-business models
• Identify and evaluate the e-business strategies
  followed by businesses
• Explain why e-business models and strategies are
  important to successful e-business

8
Define e-business models and strategy

• Model The manner in which a business organizes
  itself to achieve its objectives
• Strategy Actions a business takes to achieve its
  objectives

9
Describe how e-business models reflect strategy

• An internet based model involves the strategic
  use of the internet as a tool for implementing a
  business model.
• Nine generic web business models
• The business strategy is defined by the models or
  combination of models selected

10
Identify the components of e-business models

• The structure of the product or service
• Sources of revenue and related information flows
  that accompany the production process
• A description of the market and the stakeholders
  involved, and the benefits to the various
  stakeholders

11
Identify and evaluate the e-business strategies
followed by businesses

• The strategy of a business is largely defined by
  its choice of the nine generic business models
• E-business strategies must be consistent with the
  rest of the business
• Must be integrated with the business as a whole
• Must be integrated with the IT strategy

12
Why e-business models strategies are important
to successful e-business

• They identify how businesses will be viable in
  the long term
• The dot com bust was largely due to the fact that
  a number of businesses did not have viable
  business models for generating profits

13
Chapter 03 The Internet, Intranets and
Extranets

• Describe the Internet, its history, and its
  overall significance
• Describe how the Internet is appropriate for
  e-business
• Identify the components of the Internet
• Identify the relationship between the Internet,
  extranets and intranets
• Evaluate the situations in which the Internet,
  extranets and intranets are used for e-business
  strategies
• Explain why the Internet, extranets and intranets
  are important to successful e-business

14
Describe the Internet, its history, and overall
significance.

• Established by creating standard protocols that
  are used to transfer data from computer to
  computer
• Initially a defense project
• Invention of browsers made widespread use
  possible
• Is now the key enabler of e-business

15
Describe how the Internet is appropriate for
e-business.

• Gives business a platform independent means of
  establishing communications with partners or
  customers on a global scale
• Cost effective
• Infrastructure already exists

16
Identify the components of the Internet.

• TCP/IP
• HTML
• CGI
• HTTP
• web browsers
• XML

17
Relationship between the Internet, extranets, and
intranets.

• All make use of the same technologies
• Internet worldwide network of networks
• Intranets confined to an individual company
• Extranets set up by individual companies, but
  involve external users

18
Situations where the Internet, extranets
intranets are used for e-business strategies

• Internet used for communication between a
  company and the rest of the world
• Extranet Useful for conducting business with
  selected outside parties
• Intranet Used to share information within a
  given company

19
Why Internet, extranets, and intranets are
important to successful e-business.

• The use of the Internet, extranets, and intranets
  widen the range of available strategies,
  enhancing the chances of strategic success.

20
Chap 05 Security and Controls

• Identify the Security Risks of Internet-based
  business
• Describe generally how e-business is made secure
• Identify the major components of security systems
  for e-business
• Explain the major issues in implementing good
  security
• Describe the significant types of security tools
  available

21
Identify the security risks of Internet-based
business.

• The internet is a public network with a large
  number of users
• Much greater risk that unauthorized persons may
  access or change data
• Products available on the internet may be stolen
  by users

22
Describe generally how e-business is made secure

• Security policies and procedures adopted by a
  company
• Software with security features built-in
• An administrative structure that allows routine
  security checks to be carried out
• Setting access privileges
• Changing passwords

23
Identify the major components of security systems
for e-business

• Firewalls
• Single point of access from the internet
• Encryption
• Data is unreadable without the key to decrypt it

24
Explain the major issues in implementing good
security

• Appropriate resources must be allocated to
  maintaining security
• The tone regarding the adherence to a security
  policy within an organization is crucial
• Requires buy in from both the staff and
  management of an organization

25
Describe the significant types of security tools
available

• Logical
• Software that limits access to programs including
  network security that detects intrusions and
  viruses
• Physical
• Protects the network physically with doors,
  locks, guards, alarms, fences

26
Chapter 06 Billing and Payment Systems

• Describe the techniques for billing and payment
  over the Internet
• Describe how billing and payment techniques
  relate to corporate strategy
• Identify the advantages and disadvantages of
  these techniques
• Evaluate the suitability of billing and payment
  methods for various e-business scenarios
• Explain why many previous techniques have not
  succeeded
• Indicate the trends most likely to prevail in the
  future

27
Describe the techniques for billing and payment
over the Internet.

• There are systems that look to emulate systems
  that already exist
• Digital cheques
• Various forms of digital cash
• Credit cards
• Using advanced security
• Electronic bill payment (e-post)
• Banking transactions (account balances)

28
How billing payment techniques relate to
corporate strategy.

• Billing techniques used by a company will vary
  depending on
• The type of products the company sells
• Who its customers are
• The sales channel used
• If the customers are large regular customers EDI
  or digital cheques might be used
• If the customers are random customers coming to a
  site then credit cards or a system like PayPal
  might be used

29
Identify advantages and disadvantages of the
techniques

• Depend on the qualities of the payment options
• Some of the qualities to consider
• Anonymity
• Immediate transfer of value
• Credit risk to the vendor
• Portability for the consumer
• Acceptability

30
Suitability of billing payment methods for
various e-business scenarios

• Suitability of a given method depends on
• The business strategy
• The nature of the products
• The availability of an infrastructure is
  important
• Mondex does not have broad support because of a
  lack of infrastructure
• On the other hand payment systems organized by
  the banks have gained acceptance

31
Why many previous techniques have not succeeded

• Security issues
• Lack of support from
• Banks
• Consumers
• Inadequate infrastructure

32
Indicate the trends most likely to prevail in the
future

• Billing and payment systems supported by the
  banks
• Already the most popular methods are those
  supported by financial institutions
• The use of PDAs to make payments using infra-red
  technology