Electronic Commerce

1
Electronic Commerce

• Yong Choi
• School of Business
• CSU, Bakersfield

2
Definition of EC

• Electronic commerce (EC) is an emerging concept
  that describes the buying and selling of
  products, services and information via and the
  Internet and computer networks (EDI).
• E-Business?

3
History of EC

• 1970s Electronic Funds Transfer (EFT)
• Used by the banking industry to exchange account
  information over secured networks
• Late 1970s and early 1980s Electronic Data
  Interchange (EDI) for e-commerce within companies
• Used by businesses to transmit data from one
  business to another
• 1990s the World Wide Web on the Internet
  provides easy-to-use technology for information
  publishing and dissemination
• Cheaper to do business (economies of scale)
• Enable diverse business activities (economies of
  scope)

4
Why business is interested in EC?

• Not just save cost and increase productivity
• Paper check Vs. E-check
• Change the nature of competition
• Etrade.com / Amazon.com
• Create new businesses
• Citrix.com / Priceline.com

5
Ecommerce infrastructure

• Information superhighway infrastructure
• Internet, LAN, WAN, routers, etc.
• telecom, cable TV, wireless, etc.
• Messaging and information distribution
  infrastructure
• HTML, XML, e-mail, HTTP, etc.
• Common business infrastructure
• Security, authentication, electronic payment,
  directories, catalogs, etc.

6
E-COMMERCE BUSINESS MODELS
5-6
7
Some examples

• B2B GM and suppliers (SCM)
• B2C Amazon
• C2B Priceline
• C2C ebay
• G2C Paying tax, Vehicle registration
• B2G Lockheed (prodcuts/services to DoD)

8
E-Commerce Security

• Cryptography
• Encryption and decryption of information
• Secret Key (symmetric) Cryptography
• Public Key (asymmetric) Cryptography
• Digital Signature

9
Cryptography

• Any information (such as order) in cyberspace
  must be delivered securely using cryptography
  technology.
• History of Cryptography
• Rewrite contents (encryption) so that they cannot
  be read without key
• Encrypting function Produces encrypted message
• Decrypting function Extracts original message
• Method
• Secret key Cryptography
• Public key Cryptography
• Digital signature

10
Secret Key Cryptography

• Use a single key
• Key a set of random numbers to encrypt/decrypt
  information
• Known as symmetric encryption or private key
  encryption
• The same key is used by sender and receiver
• Easy to use, suitable when only two distinctive
  parties are involved
• Less secure (than public key cryptography), when
  many parties are involved

11
Secret Key Cryptography (symmetric)
12
Public Key Cryptography

• Use a pair of key (public and private)
• Known as asymmetric encryption
• The public key
• Known to all authorized users
• The private key
• Known only to keys owner
• Easy to use, more secure (than secret key
  cryptography), suitable when many parties are
  involved
• Requires sharing of both keys

13
Public Key Cryptography Mechanism
Message
14
Digital Signature

• Public key cryptography problem
• Receiver cannot ensure that a message is actually
  coming from sender.
• Your subordinate can send a fake message using
  your email system - which looks originated from
  YOU! - to partner.

15
Digital Signature

• Goal
• Guarantee that message must have originated with
  a certain entity (increase security)
• Idea
• Encrypt digital signature with private key
• Decrypt digital signature with public key
• Only owner of private key could have generated
  original signature

16
Digital Signature
Digital Signature
17
Developing a Web site

• Define the objective of the web site
• Identify your target audience
• Have a statement of purpose
• Know your main objectives
• Have a concise outline of the information your
  site will contain.
• Determine the web sites contents
• Design the web site
• Build the web site
• Test the web site

18
Planning Analysis of the Web Site

• Objective
• Develop marketing corporate web site that
  provides relevant company information and allows
  consumers to place orders
• Web site contents
• Company description
• List of products and prices
• List of available job positions
• Feedback, Order, and Search forms
• Travel Discussion and Web DB Table

19
Design of the SMP website
Home Page
Employment
Products
Links
Travel Service
Feedback
Search
Banner
Contents
Drink Gift Packs
Fruit Gift Packs
Gifts Baskets
Ordering Information
Order Form
20
(No Transcript)
21
Example of EC Website

• BPA
• Yong Choi

22
(No Transcript)
23
(No Transcript)
24
(No Transcript)
25
(No Transcript)
26
(No Transcript)
27
(No Transcript)
28
(No Transcript)
29
To publish the Web Site

• You are creating so called disk-based website,
  which means your web site will not display all
  the components and functions properly unless you
  publish thru web server.