Imagine you pay USD 1,000 per year for an investment information service. Convenience is an essential value proposition associated with e-commerce. The major shortcoming of credit cards is that they do not support person-to-person transfers and do not have the privacy of cash. Faster, efficient and secure payment options have played a big role in driving the unprecedented growth of the e-commerce market in recent years. Organizations have always had sensitive data to which they want to limit access to a few authorized people. Two common approaches to electronic publishing are Adobe’s portable document format (PDF) and HTML. "We used to be a pizza company that sells online and we needed to become an e-commerce company that sells pizza," Dennis Maloney, Domino's chief … Reading, MA: Addison-Wesley. An IP address is a unique 32-bit number consisting of four groups of decimal numbers in the range 0 to 255 (e.g., 128.192.73.60). Humans can more easily remember addresses like aussie.mgmt.uga.edu. I would like to stress the importance and impact of data integration for retailers with an example... Chatbot. Electronic commerce poses additional security problems. Security is an eternal concern for organizations as they face the dual problem of protecting stored data and transported messages. The principal purpose of this layer is to support common business processes. IP Address, Protocol and Ports Web server can refer to either the hardware {the computer} or the software (the computer application) that helps to deliver web content that can be accessed through the Internet. The microprocessor can be programmed. Post-Modernism and the Web: Societal effects. Thus, the Internet is well-suited to communicating with a wide variety of stakeholders. In contrast to the free form of e-mail messages, EDI supports the exchange of repetitive, routine business transactions. The Rise of E-commerce Sites Think of a digital certificate as an electronic credit card. Finally, on top of all the other layers sits an application. For example, many search functions on … A public-key encryption system has two keys: one private and the other public. First, the intent of the Internet is to give people remote access to information. 0 E-Business. Often the person using the browser can specify how the information will be presented. Once multimedia capability is added to the information exchange equation, then a new class of applications can be developed (e.g., educating the other partner about a firm’s purchasing procedures). 41 East, 11th Street, New York NY10003, USA +1-877-777-6569, 2020 © Netscribes. Electronic data interchange (EDI), e-mail, and hypertext text transfer protocol (HTTP) are examples of messaging software. In addition, the Internet is a global network potentially accessible by nearly every firm. Internet technology can be used to support communication and data transfer between two value chains. Another screening rule is to restrict access to certain applications (e.g., Web pages). Payment modes tend to vary across regions, for instance, the U.S. and Canadian markets are dominated by credit card payments, while the European market is more partial towards debit cards and digital funds transfers. Electronic Commerce: The Strategic Perspective by Richard T. Watson (University of Georgia, USA) is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted. E-government (short for electronic government) is the use of technological communications devices, such as computers and the Internet to provide public services to citizens and other persons in a country or region. Implementing and managing a firewall involves a tradeoff between the cost of maintaining the firewall and the loss caused by unauthorized access. Instead of writing a check and mailing it, the buyer initiates an electronic checking transaction (e.g., using a debit card at a point-of-sale terminal). According to 2015 estimates, warehouse-focused companies increased investments by 8%, crossing $1 billion in total investments. In 2016, companies such as German online retailer Zalando had 90% of sales via its mobile app, while UK’s Shop Direct achieved 62% of total sales on the mobile platform. In the first chapter, we argued that organizations need to make a metamorphosis. The major advantage of packet switching is that it permits sharing of resources (e.g., a communication link) and makes better use of available bandwidth. And with the rolling out of 4G connectivity in mobile networks, users the world over are beginning to experience a faster and more reliable mobile internet experience – which in turn is giving rise to mobile commerce. It is imperative now for the vendors to embrace the existing trends and chose technology and process partner that can help them in maintaining a personalized, intuitive and easy-to-use E-commerce solution. When the card is used to pay for an item, it must be inserted in a reader. C) On-demand service firms are fueling the growth of local e-commerce. D) Growth rates for retail e-commerce are higher in Europe than in the United States. The future of e-commerce will use technology to do the same thing … smarter technology that provides a better experience. For e-commerce businesses, AI technology is becoming increasingly important since it holds the potential for dynamic and adaptable targeting, which helps companies get the right pitch, at the right time, to the right customer, on the right platform. Transmission Control Protocol/Internet Protocol (TCP/IP) is the communication network protocol used on the Internet. Digicash of Amsterdam has developed an electronic payment system called ecash that can be used to withdraw and deposit electronic cash over the Internet. Historically, such data have been stored in restricted areas (e.g., a vault) or encoded. The problem with digital cash, like real cash, is that you can lose it or it can be stolen. Applegate, L. M., C. W. Holsapple, R. Kalakota, F. J. Rademacher, and A. This layer is the bedrock of electronic commerce because all traffic must be transmitted by one or more of the communication networks comprising the national information infrastructure (NII). Electronic commerce topologies. Secure Electronic Transaction (SET) is a financial industry innovation designed to increase consumer and merchant confidence in electronic commerce. Twenty million smart cards are already in use in France, where they were introduced a decade earlier. To everybody else, it is gobbledygook. The combination of SSL and fraud-detection software has so far provided low-cost, adequate protection for electronic commerce. All electronic money systems are potentially divisible. Electronic checking is fast; transactions are instantaneous. Cookies have several uses. Credit cards are a safe, secure, and widely used remote payment system. While an intranet may not directly facilitate cooperation with external stakeholders, its ultimate goal is to improve an organization’s ability to serve these stakeholders. The major shortfall of EFT is that all transactions must pass through the banking system, which is legally required to record every transaction. The Automatic Teller Machine (ATM), credit cards, telephone backing etc are all technologies used within E-Commerce. All the Html, JavaScript, PHP files, databases, media files that make up the entire website are stored on this server. Anticipatory shipping definitely has the power to save the customer a lot of valuable time and effort as they are set free from mundane tasks such as shopping for household essentials and having to travel to markets. This barrier monitors and controls all traffic between the Internet and the intranet. Each layer is founded on the layer below it and cannot function without it. For instance, if you want to e-mail a confidential message, you can simply obtain the sender’s public key and encrypt your entire message prior to transmission. A firewall is usually located at the point where an intranet connects to the Internet, but it is also feasible to have firewalls within an intranet to further restrict the access of those within the barrier. Consider the message shown in Exhibit 10; the sender would hardly want this message to fall into the wrong hands. A means to accomplish this has been to use technology that drives a high degree of personalization, such that each customer is treated as an individual target segment, rather than a part of a generalized mass. This is further expected to give a boost to cashless payment modes and, in turn, lead to inflating e-commerce sales. In an earlier time, messages were sealed with the sender’s personal signet ring–a simple, but easily forged, method of authentication. Hackers can use computers to intercept network traffic and scan it for confidential information. The story of Amazon.com is an e-commerce dream. Researchers predict e-commerce will be 17 percent of U.S. retail sales by 2022, according to Digital Commerce 360. The security system is based on public-key cryptography and passwords. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business. HTML is a markup language , which means it marks a portion of text as referring to a particular type of information.6 HTML does not specify how this is to be interpreted; this is the function of the browser. Other servers can be enabled by using Netscape’s SSLRef program library, which can be downloaded for noncommercial use or licensed for commercial use. Each of these topologies is briefly described, and we discuss how they can be used to support electronic commerce. The application is a book catalog; encryption is used to protect a customer’s credit card number; the application is written in HTML; HTTP is the messaging protocol; and the Internet physically transports messages between the book seller and customer. According to recent estimates by eMarketer, worldwide retail sales are expected to reach $4 trillion by 2020. Cookies are a useful way of collecting data to provide visitors with better service. Traditional encryption, which uses the same key to encode and decode a message, has a very significant problem. Ecash can be used for everyday Internet transactions, such as buying software, receiving money from parents, or paying for a pizza to be delivered. | Privacy Policy | Cookie Policy | Terms of Use | Site Map, By continuing to browse this website, you agree to our use of cookies as described in our. The technology used in e-commerce is Both software and hardware technology must be included in your e-business plan. Consumers buy cards of standard denominations (e.g., USD 50 or USD 100) from a card dispenser or bank. In addition, consumers want assurance that the Web site with which they are dealing is not a bogus operation. E-commerce software 3. This software plug-in contains a consumer’s digital certificate, shipping and other account information. Two variants of digital cash are presently available: prepaid cards and smart cards. Either B2B or B2C, the role of technology is the base and the existential factor when it comes to E-commerce industry. Exhibit 8. Electronic funds transfer (EFT), introduced in the late 1960s, uses the existing banking structure to support a wide variety of payments.  As technology continues to evolve, expect the e-commerce industry to reach unmatched levels of growth by 2020. If senders and receivers cannot be sure that their communication is strictly private, they will not use the Internet. Nearly every business is concerned with collecting payment for the goods and services it sells. Unarguably, Shopify is one of the most popular and highly preferred web technologies … Computers can communicate with each other when they speak a common language or use a common communication protocol. A smart card, containing memory and a microprocessor, can store as much as 100 times more data than a magnetic-stripe card. The sender encrypts a message with the intended receiver’s public key, and upon receiving the message, the receiver applies her private key (see Exhibit 13). In Telekoopertion in Unternehmen , edited by F. Lehner and S. Dustdar. A digital signature is used to guarantee a message sender’s identity. To decipher a PDF file, the recipient must use a special reader, supplied at no cost by Adobe for all major operating systems. Promotion: Integrated Web communications, 5. PDF is an operating system independent and printer independent way of presenting the same text and images on many different systems. The U.S. will spend about $460 billion online in … Exhibit 13.: Encryption with a public-key system. Anticipatory shipping is the closest e-commerce can come towards clairvoyance. The two formats coexist. The creator of a Web site often wants to remember facts about you and your visit. Watson, R. T., P. G. McKeown, and M. Garfield. If the President indeed were in the habit of communicating electronically, it is likely that he would sign his messages so that the receiver could verify it. We respect your right to data privacy and security. Producing a PDF document is very similar to printing, except the image is sent to a file instead of a printer. This facility provides an additional level of security for consumers, banks, and credit card issuers, because it significantly reduces the ability of unscrupulous merchants to establish a successful Web presence. As the technology changing the transactions between the business and consumer, the consumer is accessing various tools to estimate prices, find alternatives, stores and obtain coupons. The Internet and intranet, as the names imply, are networks. Public-key cryptography ensures message confidentiality between parties in a financial transaction. Thus, the you may see an image somewhat different from what the designer intended. A sender’s private key is used to create a signed message . Shopping cart software 2. Mobile devices have changed the way we live in radical ways, contributing to every aspect of our daily existence, becoming an integral tool for day-to-day living. For instance, banks (which bear the brunt of the cost of credit card fraud) prefer credit card numbers to be hidden from prying electronic eyes. The application on the cardholder’s side is also called the digital wallet . PDF is a page description language that captures electronically the layout of the original document. To send and receive messages, communicators first need to create separate pairs of private and public keys and then exchange their public keys. When commerce goes electronic, the means of paying for goods and services must also go electronic. An extranet (see Exhibit 7) is designed to link a buyer and supplier to facilitate greater coordination of common activities. It will also enable access to the global marketplace. Any computer connected to the Internet can communicate with any server in the system (see Exhibit 5). The intruder cannot read the data without knowing the method of encryption and the key. Its purpose is to deliver a message from a server to a client. They have to abandon existing business practices to create new ways of interacting with stakeholders. Not only does it help connect sellers and customer on mobile and web platforms, but also enables the effective management of customer orders, deliveries, returns and payments of purchased goods. In the information age, we need electronic encryption and signing for the orderly conduct of business, government, and personal correspondence. As more people embrace digital technologies, companies are betting on innovative technologies to capture more customers and create differentiated experiences online. You must find another secure medium for transmitting the key. The receiver then applies the sender’s public key to verify the signature (see Exhibit 17). To counteract this possibility, encryption can be used to obscure the meaning of data. B. Whinston. The client is used to withdraw ecash from your bank account, and store it on your personal computer. The multimedia capability of the Internet creates an opportunity for new applications that spawn a qualitatively different type of information exchange within a partnership. E-government offers new opportunities for more direct and convenient citizen access to government, and for government provision of services directly to citizens. They realized that in order to promote electronic commerce, consumers and merchants would need a secure, reliable payment system. One of the most common roadblocks that online retailers haven’t completely overcome yet is... Data Integration. AI-powered technologies have great potential in optimizing search through … A banking system has one or more common clearinghouses that facilitate the flow of funds between accounts in different banks. Exhibit 6. The Internet Network Information Center (InterNIC) manages the assignment of unique IP addresses so that TCP/IP networks anywhere in the world can communicate with each other. This higher degree of digital security has bestowed customers with a new confidence, especially to those consumers who have been laggards in the online shopping segment due to security concerns. Exhibit 19. The technical problems of electronic money have not been completely solved, but many people are working on their solution because electronic money promises efficiencies that will reduce the costs of transactions between buyers and sellers. Routing is the process of determining the path a message will take from the sending to the receiving computer. Buyers and sellers must be able to verify that the electronic money they receive is real; consumers must have faith in electronic currency. Characteristics of electronic money. The payment gateway is the bridge between SET and the existing payment network. Shopify is a very popular SEO compliant and constantly evolving web technology for an e … The various approaches to electronic money vary in their capability to solve these concerns (see Exhibit 19). and then you make the pay… As long as the information is readable and presented clearly, the reader can be given control of how it is presented. Content is the key in order to get high rankings and therefore, it must … Coding or encryption techniques, as old as writing, have been used for thousands of years to maintain confidentiality. Either method is not completely secure and is time-consuming whenever the key is changed. The client part of SSL is part of Netscape’s browser. Consider the case of a book seller with an on-line catalog (see Exhibit 6). It can’t be sent with the message because if the message is intercepted, the key can be used to decipher it. Weisbaden, Germany: Deutscher Universitäts Verlag, 1-11. The reverse process, decryption, converts a seemingly senseless character string into the original message. In the next few years, electronic currency will displace notes and coins for many transactions. As smart cards are likely to have a unique serial number, consumers can limit their loss by reporting a stolen or misplaced smart card to invalidate its use. Web server Software. The two main methods for transporting data across a network are circuit and packet switching. The main advantages of EDI are: Despite these advantages, for most companies EDI is still the exception, not the rule. Many organizations have realized that Internet technology can also be used to establish an intra-organizational network that enables people within the organization to communicate and cooperate with each other.