Electronic Commerce

1
Electronic Commerce

• Chapter 9

2
Strategize

• The basics of electronic commerce (EC)
• The evolution of e-commerce as well as the cost,
  benefits and barriers to implementation
• How e-commerce standards are used
• The key terms and languages used for e-commerce
  on the Internet

3
Strategize

• The security issues involved in e-commerce and
  their solutions
• The role of Value-Added Networks (VANs) and banks
  in e-commerce
• How the Internet can affect EC
• Learn how to calculate/prepare/interpret the
  following
• Price changes (discount) to compensate for
  earlier payment

4
Define 1

• A traditional form of e-commerce that utilizes
  structured electronic transactions in established
  standards to exchange data from one companys
  application to another companys application
  system

Electronic Data Interchange (EDI)
5
Define 2

• Internal networks that utilize browser
  technology to provide data and applications for
  users.

intranet
6
Define 3

• This comprises a set of internationally agreed
  upon standards, directories, and guidelines for
  the electronic interchange of structured data
  related to trade.

UN/EDIFACT Standards
7
Differentiate 1

• Differentiate between the two primary examples of
  electronic commerce applications developed as the
  result of the redesign of the finance functions
  or processes.

A payment method designed to eliminate the need
for a supplier to provide an invoice to the
customer and is based on the calculation of the
quantity actually received by the customer. The
process by which a payment record is created for
goods/services when they are used rather than
when they are shipped or delivered
evaluated receipts settlement
paid-on production
8
Describe 1

• Describe two basic types of electronic commerce.
• 1. Business-to-consumer e-commerce (B2C)
• 2. Business-to-business e-commerce (B2B)

9
Describe 2

• Describe five major benefits of e-commerce.
• 1. Improved productivity

2. Reduced cycle time
3. Lower error rates 4. Improved cash
forecasting 5. Improved communications
capabilities
10
Describe 3

• Describe seven costs that need to be considered
  in implementing EDI.
• 1. Software
• 2. Hardware
• 3. Communications
• 4. Security
• 5. Education and training

6. Trading partner selling and support 7. Negotiat
ing with trading partners
11
Describe 3

• Describe the six most commonly used NACHA
  standard formats for ACH payments.
• 1. Prearranged Payments and Deposits (PPD)
• 2. Cash Concentration or Disbursement (CCD)
• 3. CCD Plus Addenda (CCD)
• 4. Tax Payment Format (TXP)
• 5. Corporate Trade Exchange (CTX)

6. Re-Presented Check Entries (RCK)
12
Describe 4

• Describe three languages used to create Web pages
  on the Internet and other browser-based formats.
• 1. Hypertext Markup Language (HTML)

2. eXtensible Markup Language (XML)
3. Financial Services Markup Language (FSML)
13
Describe 5

• Describe four four key factors that security must
  provide.
• 1. Privacy
• 2. Authentication
• 3. Integrity

4. Non-repudiation
14
Describe 6 (1 of 2)

• Describe five key issues in the use of PKI.
• 1. It uses public/private key pairs based on RSA
  standard encryption technology
• 2. The private key is held in a secret, secure
  file that is protected with a password or
  personal identification number, while the
  corresponding public key is freely distributed to
  trading partners

3. Anyone can use public keys to encrypt a
message, while only the receiver with the proper
private key can open and read messages
15
Describe 6 (2 of 2)

• Describe five key issues in the use of PKI.

• 4. It definitely identifies a person or
  organization and allows for privacy
• 5. It is most often used in the form of digital
  signatures and digital certificates