Professional Documents
Culture Documents
Objectives
38.1 Introduction
38.2 e-Business Models
• e-business
– Expansion of old technologies and techniques
• Electronic Funds Transfers, for example
– Requires new business models and categories
– Pioneered by early e-businesses
• Amazon.com, eBay, Yahoo among others
38.2.1 Storefront Model
38.2.2 Shopping-Cart Technology
• Shopping-cart metaphor
– Holds items a user has selected to buy
– Merchant server contains database of available items
– User puts all desired items in the cart
– When finished, user “checks out”
• Prices totaled
• Shipping, tax and other charges applied
• Shipping and payment details gathered
• Order confirmed
32.2.3 Auction Model
• Online auctions
– Buyers bid on items made available by various sellers
• No fixed price
– Very attractive to customers
• Often able to get lower prices on goods than traditional stores
– Site is searchable to allow easy location of desired items
– Site receives a commission on each sale
– Model also employed in business-to-business transactions
– www.eBay.com is the leading auction site
38.2.3 Auction Model
Fig. 38.1 eBay home page. (These materials have been reproduced with the permission of eBay Inc.
COPYRIGHT © EBAY INC. ALL RIGHTS RESERVED.)
38.2.3 Auction Model
Fig. 38.2 Placing a bid on eBay. (These materials have been reproduced with the permission of eBay Inc.
COPYRIGHT © EBAY INC. ALL RIGHTS RESERVED.)
38.2.4 Portal Model
• Portal sites
– Combine many services into one page
• News
• Sports
• Weather
• Web searches
– Horizontal portals
• Search engines
• Aggregate information on broad range of topics
– Vertical portals
• Information on narrow range of topics
– Convenient, centralized access to information
38.2.5 Name-Your-Price Model
38.2.6 Comparison-Pricing Model
38.2.7 Bartering Model
38.3 Building an e-Business
• Multiple approaches
– Turnkey solutions
• Ready-made e-Business sites
– e-Business templates
• Outline business’ structure
• Design details left open to owner
– Outsource control entirely to a specialized firm
• Expensive
• Little hassle, lets experts control it while you control your
business
– Build original, custom solution
• Allows maximum control, makes your site unique
• Most expensive, involves “reinventing the wheel”
38.4 e-Marketing
• Marketing campaign
– Marketing your site through multiple means
– Market research
– Advertising
– Promotions
– Branding
– Public Relations (PR)
– Search engines
38.4.1 Branding
• Brand
– Name, logo or symbol that defines company’s products or
services
• Unique
• Recognizable
• Easy to remember
– Brand equity
• “Value” of the brand
• Customer perception and loyalty
– Companies with existing brand may more easily establish
their brand on the Internet
• New companies must work to establish trust in their brand
38.4.2 Marketing Research
• Marketing research
– Marketing mix
• Product or service details
• Pricing
• Promotion
• Distribution
– Focus groups
– Interviews
– Surveys and questionnaires
– Secondary research
• Reviewing pre-existing data
38.4.2 Marketing Research
38.4.3 e-Mail Marketing
• e-Mail marketing
– Part of the reach of the campaign
• Span of people who marketing should target
– Direct mail vs. indirect mail
• Direct mail is personalized to the individual recipient
• Direct is often more effective
• Offers right product at right time
• Tailor mailing to customer’s interests
– Opt-in e-Mail lists
• Customer chooses to subscribe
• Send newsletters with information on offers and promotions
38.4.3 e-Mail Marketing
38.4.4 Promotions
• Promotions
– Attract visitors
– Encourage purchasing
– Increase brand loyalty
– Should not be only reason people purchase from your
company
• Sign of weak product or brand
– Be sure cost of promotion is not so great that no profit is
ever seen
38.4.5 Consumer Tracking
• Consumer tracking
– Keep user profiles
– Record visits
– Analyze results of advertising and promotion
– Helps define target market
• Group toward whom it is most profitable to target marketing
resources
– Log files contain many useful details
• IP address
• Time and frequency of visits
38.4.5 Consumer Tracking
38.4.6 Electronic Advertising
• Advertising
– Establish and strengthen branding
– Publish URL in all advertising
• Internet advertising becoming important
– Links and banners on sites viewed often by target market
• Can be interactive or animated
– Allow advertising on your site in return for payment
– Pop-up ads
• Appear in a separate window when page loads
• Often extremely irritating to customers
• Actually decrease interest in advertised product due to
negative association with pop-up ad
38.4.6 Electronic Advertising
38.4.7 Search Engines
• Search engines
– Scan websites for desired content
– Being highly ranked in search results important
• People tend not to browse results too deeply
– Some sites base your ranking on meta tags
• Hidden XHTML tags that contain information about site
• Keywords, title, summary
– Others simply “spider” the site
• Program reads content and decides what is important
38.4.7 Search Engines
38.4.8 Affiliate Programs
• Affiliate programs
– Company pays other sites to be affiliates
• Advertise the company’s products
• When their ad leads to purchases from the company, affiliate
site receives a commission
– Increases exposure and number of site visits
– Amazon.com has large, successful affiliate program
38.4.9 Public Relations
• Public relations
– Provide customers with latest information
• Products and services
• Sales
• Promotions
– Press releases
– Presentations and speeches
– e-Mail
– Crisis management
• Issue statements regarding company problems
• Minimize damage to company, brand and reputation
38.4.10 Customer Relationship Management
38.4.10 Customer Relationship Management
• Aspects of CRM
– Call handling
• Management of calls between customers and service
representatives
– Sales tracking
– Transaction support
• Support for people and technology involved in keeping
transactions running smoothly
– Personalization of customer experience
38.5 Online Payments
38.5.1 Credit-Card Payment
38.5.2 Digital Cash and e-Wallets
• Digital cash
– Stored electronically
– Analogous to traditional bank account
• Customers deposit money
– Overcomes drawbacks of credit cards
• Digital cash accounts often allow deposits in form of checks or
bank transfers
• Allows merchants to accept customers without credit cards
• e-Wallets
– Store billing and shipping information
– Fill out forms at compatible sites in one click
38.5.3 Micropayments
• Micropayments
– Merchants often charged fee for credit card transactions
• For small items, fee can exceed cost of item
– Micropayments allow merchants to avoid this problem
• Add together all small transactions and pay percentage of that
– Similar to concept of phone bill
• Pay one large sum monthly rather than tiny sum per each use
38.5.4 Smart Cards
• Smart cards
– Memory cards
• Only allow for storage of information
– Microprocessor cards
• Like tiny computers
• Can do processing in addition to storing data
– Contact interface
• Card inserted into reading device for use
– Contactless interface
• Data transmitted via wireless device inside card
– Data and money protected by personal identification number
(PIN)
38.6 Security
38.6.1 Public-Key Cryptography
• Cryptography
– Transforms data using cipher or cryptostream
– Key acts as password that combined with cipher will decrypt
encoded message into original message
– Early cryptography relied on symmetric cryptography
• Same key used to encrypt and decrypt
• Problem of how to securely transmit key itself arose
– Solution was public-key cryptography
• Two related but different keys used
• Sender uses receiver’s public key to encode
• Receiver decodes with private key
• Keys long enough that guessing or cracking them takes so
much time it is not worth the effort
38.6.1 Public-Key Cryptography
Fig. 38.3 Encrypting and decrypting a message using public-key cryptography.
38.6.1 Public-Key Cryptography
• Digital signatures
– Same concept as physical written signatures
• Authenticate signer
• Difficult to forge
– Part of public-key cryptography
– Generated by running phrase through hash function
• Returns hash value
– Hash value for a phrase is over 99% guaranteed unique
• ie., two different phrases very unlikely to generate same value
38.6.1 Public-Key Cryptography
Fig. 38.4 Authentication with a public-key algorithm.
38.6.1 Public-Key Cryptography
38.6.1 Public-Key Cryptography
• PKI implementations
– More secure than standard point-of-sale (POS) transactions
• Strong encryption can take decades to crack using current
technology
– RSA encryption popular choice for PKI
• Developed at MIT in 1977
– Pretty Good Privacy (PGP)
• Implementation of PKI
• Very popular way to encrypt e-mail
• Operates using web of trust
38.6.2 Cryptanalysis
38.6.2 Cryptanalysis
• Preventative measures
– Key expiration dates
• If attacker breaks or steals key, only useful for limited time
– Exchange secret keys securely with public-key cryptography
38.6.3 Key-Agreement Protocols
38.6.3 Key-Agreement Protocols
Fig. 38.5 Creating a digital envelope.
38.6.4 Key Management
38.6.5 Secure Sockets Layer (SSL)
38.6.5 Secure Sockets Layer (SSL)
38.6.5 Secure Sockets Layer (SSL)
• SSL
– Layer on top of TCP/IP
– Implements public-key encryption using RSA algorithm
– Generates secret key referred to as session key
• Rest of transaction encrypted using this key
– Messages still sent through TCP/IP after encryption step
– Generally used for point-to-point connections
• One computer communicating with another directly
– Transport Layer Security (TLS) another similar technology
38.6.5 Secure Sockets Layer (SSL)
• SSL, cont.
– SSL does not protect data stored on server
• Only data that is currently traveling across network
– Stored data should be encrypted by another means
– Always take standard precautions against cracker attacks
• Making SSL more efficient
– Encryption taxing on server resources
– Dedicated SSL encoding/decoding hardware exists
• Peripheral component interface (PCI) cards
• Offload these tasks from CPU
38.6.6 WTLS
38.6.8 Security Attacks
38.6.8 Security Attacks
38.6.8 Security Attacks
38.6.9 Network Security
• Network security
– Allow authorized users access they need
– Prevent unauthorized users from accessing and damaging
network
– Firewall a vital tool for network security
• Protects LANs from unauthorized traffic
• Placed between external Internet connection and computers on
local network
• Blocks or allows traffic based on rules set by administrator
• Administrator must balance users’ needs for functionality
against need for network security
38.6.9 Network Security
38.7 Legal Issues
38.7.1 Privacy
38.7.2 Defamation
• Defamation
– Consists of slander and libel
• Slander is spoken
• Libel is written or spoken in a broader context than slander
• Proving defamation
– Plaintiff must:
• Show that statement was written, spoken or broadcast
• Reasonably identify individual responsible
• Show that the statement is indeed defamatory
• Show that the statement was intended to cause harm and
known to be false
• Show evidence of injury or actual loss
38.7.3 Sexually Explicit Speech
38.7.4 Spam
• E-mail marketing
– Can be useful or harmful
– Unsolicited mass-mailings, or Spam, strongly frowned on
• Many Internet users received hundreds per day
• Content often at best irrelevant and at worst highly offensive
• Possible for children to receive pornography, for example
– Legislation being created to deal with Spam epidemic
– Software to combat spam also exists
– Spammers constantly evolve to circumvent new measures
– One of the toughest usability and privacy issues with
Internet today
38.7.5 Copyrights and Patents
• Copyright
– Protection given to author of original piece
• Protects an expression of idea, not idea itself
– Incentive to create by guaranteeing credit for work
• Life of author plus 70 years
– Digital technology has made copyright gray area
• Fair use vs. piracy
• Copies can be perfect, not cheap imitations
– Movies and MP3-encoded music files hottest area of debate
• File-sharing programs lets users download copyrighted works
freely
• Costs distributors and artists money
• Users want to sample music, enjoy lower prices
38.7.5 Copyrights and Patents
• Patents
– Grant creator sole rights to a discovery
– Designed to foster invention and innovation
• Guarantees new idea cannot be stolen from inventor
– Possible to patent method of doing business
• Must be non-obvious to person skilled in relevant field
– Also contentious area
• Some feel patents stifle rather than foster innovation
• 20-year duration may be too long in fast-paced software world
• Some companies file patents solely to profit from infringement
lawsuits later on
38.8 XML and e-Commerce
38.10 m-Business
• Mobile business
– E-business enabled by wireless technology
– Relatively new, but rapidly growing
– Access critical business information anytime, anywhere
• Employees can conduct their duties more easily
• Customers can interact with online businesses in new ways
and locations
38.11 Identifying User Location
• Location-identification technologies
– Determine users’ physical location to within yards
– Useful in wireless marketing
• Send promotion data when user is near relevant location
– Great benefits to emergency services
• Quickly and accurately locate victims
– Made possible by relationships between wireless providers,
networks and users
– Multipath errors can cause problems
• Signals reflecting off nearby objects
38.11.1 E911 Act
38.11.2 Location-Identification Technologies
38.11.2 Location-Identification Technologies
38.13 Wireless Payment Options
38.14 Privacy and the Wireless Internet
38.14 Privacy and the Wireless Internet
• CITA
– Cellular Telecommunications and Internet Association
– Group that has created guidelines for consumer privacy
– Outlined four guidelines
• Alert consumers when location being identified
• Always use opt-in marketing
• Consumers able to access their own information
• Same protections offered by all devices and carriers