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E-Commerce: The Present and the Future

E-Commerce: The Present and the Future. By David Ríos. Today’s Points. What is E-Commerce? E-Business? B2B and B2C Models Emerging Business Models M-Commerce Hands on: eBook Reader, Japanese mobile phone Web 2.0 Design Technologies Hands on: Ajax (Carmax and Netflix)

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E-Commerce: The Present and the Future

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  1. E-Commerce: The Present and the Future By David Ríos

  2. Today’s Points • What is E-Commerce? E-Business? • B2B and B2C Models • Emerging Business Models • M-Commerce • Hands on: eBook Reader, Japanese mobile phone • Web 2.0 Design Technologies • Hands on: Ajax (Carmax and Netflix) • Marketing: Customer Relationship Mgmt (CRM) • Security and Encryption

  3. What is E-Commerce? • Definition: • Commercial transactions taking place over the internet and the world wide web • Examples: Amazon.com, eBay • Commercial transactions take place in the real world but… • the exchange of value is initiated over the web, and/or • the web application serves as a viable means of attracting significant numbers of customers • Example: CarMax.com

  4. What is not E-Commerce? • Web sites that simply introduce the company • Systems that manage procurement • Systems that manage supply chain and logistics • Customer Relationship Management Systems • Although they support E-Commerce, these are best described as E-Business

  5. Business-to-Consumer Models

  6. Business-To-Business

  7. Business-To-Business

  8. Which represents more money in annual sales? Business-To-Consumer or Business to Business? • In 2007, B2C E-Commerce totaled $225 billion dollars in sales • In 2007, B2B E-Commerce totaled $3.6 trillion dollars in sales

  9. Other Business Models B2B and B2C constitute about 75% of the E-Commerce Market

  10. M-Commerce • A small market in the US but growing fast • M-Commerce limited to purchases on laptops, PDAs, and now eBook readers • A BIG market in Europe, Japan, South Korea • Mobile phones contain credit cards • Train companies use RFID chip smart cards • Cell phones contain barcode scanners for ads

  11. Mobile Phone Security • Mobile phone and security key. • Must be within 2 meters of each other to work. • If the phone is stolen but not the key, the phone cannot be used to buy anything.

  12. Smart Cards • Suica card • JR Railway in Japan • Is a contactless smart card (debit) • Contains an RFID (Radio frequency ID) chip

  13. QR (Quick Response) Bar Code • Invented in Japan in 1994 • Stores addresses or URLs • Often included in ads • Are everywhere in Japan • Can be read with a cell phone • http://www.iuhw.ac.jp/m/

  14. E-Book Readers Amazon Kindle Barnes & Noble “Nook” http://www.barnesandnoble.com/nook/features/?cds2Pid=30195 • http://www.amazon.com/

  15. Web 2.0 Design Elements and Technologies • E-Commerce sites stages • Technology-centered (1995-2000) • Product-centered (2000-2005) • Customer-centered (2006-Today) • Today’s e-commerce site • More interactive • Uses audio, video, animation • Richer GUI with more features

  16. Technologies • Ajax (Asynchronous Javascript and XML) • Adobe Flex (Flash and Action Script) • Microsoft Silverlight, ASP.Net Ajax • Java FX • Java Server Faces • Adobe Integrated Runtime and Google Gears (for offline work – synchronized later) • APIs (Amazon web services), Mashups (Google Maps + real estate listings), Widgets, Gadgets

  17. Classic Web Application

  18. AJAX enabled web application

  19. Web 2.0 Ajax Websites Carmax.com: A no-haggle auto retailer that sells quality used cars in over 100 stores nationwide Netflix.com: An online DVD rental service with home delivery and no late fees

  20. Marketing • How and why do customers shop online? • Brick-and-Mortar Shopping/Browsing and Traditional Ads influence Online Shopping • Online Shopping/Browsing and Internet Ads influence Brick-and-mortar Shopping • Most people use search engines to find online retailers or go directly to a known site • Banner ads, Facebook ads (community sites), affiliate marketing • CRMs (a total view of the customer)

  21. Customer Relationship Management System (CRM) • Track all contact with the customer • Enable up-selling and cross selling • Create more sales opportunities • Enable all employees to provide unparalleled service.

  22. Security • Cybercrime is becoming a big problem. • The Internet and Web are increasingly vulnerable to large-scale attacks (February 2007 – Verisign). • The Internet has been business driven and grown faster than security measures and practices have. • The Internet was not originally designed to be a global marketplace.

  23. Why is the Web such a Tempting Target? • Products, services, cash and information are in abundance • It’s less risky b/c you can do it anonymously • The Web lacks basic security features found in older networks (broadcast TV, telephone)

  24. The Top 5 Cyber Crimes are… • #5 – Phishing • #4 – Laptop/Mobile device theft • #3 – Nigerian Letter Fraud • #2 – Virus • #1 – Insider Abuse

  25. Key Dimensions of E-Commerce Security

  26. Potential Threats • Viruses, worms, bots, Trojan horses • Spyware • Phishing • Denial of Service (DoS) • Distributed Denial of Service (DDoS) • Hackers • Spoofers (redirect your site)

  27. Two Main Lines of Defense • Technology Solutions • Encryption, Digital Signatures, Digital Envelopes • Secure Socket Layers (SSL) – encrypted session • Firewalls, Proxy Servers • Policy Solutions • Perform a risk assessment (rank your assets & risks) • Develop security policies • Develop an implementation plan • Create a security organization/team • Perform a security audit.

  28. Encryption • Reorganizes the content of a message so it can’t be understood • Uses a cipher or a key • Cipher: Substituting one symbol for another or transposing letters (easy to break) • Key: Mathematical formula that creates a string that must be decoded using the same key or another (harder to break)

  29. Types of Encryption Strategies • Symmetric Key: Uses the same key to encrypt and decrypt • Public Key Encryption: Uses a public and private key to encrypt (128 to 512 bits). • Digital Signature: uses hash digests and double encryption • Digital envelope: Encrypts a document with a symmetric key and a public key to encrypt the symmetric key • Digital Certificate: Issued by a third party that identifies you, contains your public key, a serial number, and an expiration date (to solve identity issues).

  30. Public Key Encryption

  31. Digital Signature

  32. Pros and Cons • Good security protects your customers • Attracts Customers • Keeps costs and bad publicity down • The more security, the more expensive • The more security, the more inconvenient

  33. Future of E-Commerce (my predictions) • Greater Security • Internet Content Providers (sell channels) • Product interaction online (cars, homes) • Interactive entertainment (Fahrenheit 451) • Ubiquitous E-Marketing (Minority Report) • Sale of B2C and C2C Services (i.e., Long Distance Education) will become global

  34. Getting a job in e-Commerce • Know one language or platform inside and out • Have a portfolio of at least one impressive project • Be focused on what you can give them • A technology degree isn’t of much value without knowledge and skills to back it up • Story: The MIS guy who didn’t get hired

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