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Chapter 3Chapter 3

Electronic Commerce and Internet Technologies

Introduction to Information Systems

Judith C. Simon

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"Copyright © 2001 John Wiley & Sons, Inc. All rights reserved. "Copyright © 2001 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without in Section 117 of the 1976 United States Copyright Act without

the express written permission of the copyright owner is the express written permission of the copyright owner is unlawful. Request for further information should be addressed unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no and not for distribution or resale. The Publisher assumes no

responsibility for errors, omissions, or damages, caused by the responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information use of these programs or from the use of the information

contained herein."contained herein."

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Chapter 3 Major TopicsChapter 3 Major Topics

Electronic data interchangeElectronic data interchange Introduction to the InternetIntroduction to the Internet Business examples of Internet electronic Business examples of Internet electronic

commercecommerce Security issues of Internet electronic commerceSecurity issues of Internet electronic commerce Expected growth of Internet electronic commerceExpected growth of Internet electronic commerce Additional Internet technologiesAdditional Internet technologies

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Electronic Commerce (E-Commerce) OverviewElectronic Commerce (E-Commerce) Overview

Also called e-businessAlso called e-business Refers to commercial transactions in electronic Refers to commercial transactions in electronic

formform

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Communications SoftwareCommunications Software

Manages transmission of data between computers Manages transmission of data between computers (provides appropriate instructions to hardware)(provides appropriate instructions to hardware)

Used to transfer files and to send messages Used to transfer files and to send messages (electronic mail)(electronic mail)

Available with some operating systems, as well as Available with some operating systems, as well as with some related hardware such as a modem, or with some related hardware such as a modem, or as a separate purchaseas a separate purchase

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Electronic Data Interchange (EDI)Electronic Data Interchange (EDI)

Has been in use for several decades (longer than Has been in use for several decades (longer than business uses of the Internet have existed)business uses of the Internet have existed)

Purpose/use is to send data over communication Purpose/use is to send data over communication lines as secure, direct links between organizationslines as secure, direct links between organizations

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Internet IntroductionInternet Introduction

InternetInternet: international network of networks: international network of networks Overall cost of communication is considered low, Overall cost of communication is considered low,

but some parts of the world lack the needed but some parts of the world lack the needed technologytechnology

TCP/IPTCP/IP: set of protocols (rules) used for Internet : set of protocols (rules) used for Internet transmissionstransmissions

Security of messages and data continues to be a Security of messages and data continues to be a concernconcern

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Internet AccessInternet Access

ISPISP: Internet Service Provider, such as AOL: Internet Service Provider, such as AOL DomainDomain: Type of organization providing access, : Type of organization providing access,

such as .com (commercial) or .edu (educational)such as .com (commercial) or .edu (educational) Email address patternEmail address pattern: username@host.domain: username@host.domain

example: johndoe@aol.comexample: johndoe@aol.com example: janedoe@memphis.eduexample: janedoe@memphis.edu

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World Wide Web (WWW or “Web”)World Wide Web (WWW or “Web”)

Designed in 1989 to help researchers to Designed in 1989 to help researchers to collaborate over the Internetcollaborate over the Internet

HypertextHypertext: links that can take the user directly to : links that can take the user directly to other data stored locally or externallyother data stored locally or externally

HypermediaHypermedia: use of nontext media, such as : use of nontext media, such as images, sound, animationimages, sound, animation

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World Wide Web, continuedWorld Wide Web, continued

HTMLHTML: Hypertext markup language, the basic : Hypertext markup language, the basic code used developing for Web pagescode used developing for Web pages

HTTPHTTP: Hypertext transfer protocol, rules for : Hypertext transfer protocol, rules for distributing or transmitting hypertext files (Web distributing or transmitting hypertext files (Web pages)pages)

BrowserBrowser: software (e.g., Netscape, Internet : software (e.g., Netscape, Internet Explorer) used to retrieve HTML documents and Explorer) used to retrieve HTML documents and display them on a computer screen; has capability display them on a computer screen; has capability of interpreting code and handling hyperlinksof interpreting code and handling hyperlinks

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Management Concerns - World Wide WebManagement Concerns - World Wide Web

Is developing and maintaining a home page worth Is developing and maintaining a home page worth the time and expense involved to the organization?the time and expense involved to the organization?

Can business transactions be processed safely?Can business transactions be processed safely? Is employee access to the Web worth the expense? Is employee access to the Web worth the expense?

If so, which employees need access? Should If so, which employees need access? Should access be restricted or monitored?access be restricted or monitored?

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Security Issues of E-CommerceSecurity Issues of E-Commerce

Digital certificatesDigital certificates: used for identification and for : used for identification and for exchanging with another party for security of exchanging with another party for security of transactionstransactions

Both Both public and private certificatespublic and private certificates are available. are available. Public may be used for identification as a Public may be used for identification as a customer purchasing products online. Private is customer purchasing products online. Private is often used when access is limited to specified often used when access is limited to specified persons, who can be provided with the private persons, who can be provided with the private certificates. A combination of both types may be certificates. A combination of both types may be used for additional security.used for additional security.

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Electronic Mail (email)Electronic Mail (email)

EmailEmail: sending and receiving messages by : sending and receiving messages by computer system; very widely used in businesses computer system; very widely used in businesses and homesand homes

Electronic eavesdroppingElectronic eavesdropping: reading and perhaps : reading and perhaps storing (without permission) messages sent to storing (without permission) messages sent to someone elsesomeone else

Emoticon (emotional icon)Emoticon (emotional icon): used to indicate : used to indicate intended feelings, e.g., :-) = smile to indicate intended feelings, e.g., :-) = smile to indicate intended humorintended humor

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Electronic MailElectronic Mail

An advantage:An advantage: Messages can be sent and responses received very Messages can be sent and responses received very

quickly.quickly.

A disadvantage:A disadvantage: Confidentiality is not ensured: for example, a message Confidentiality is not ensured: for example, a message

intended to be private could be forwarded to 1000 intended to be private could be forwarded to 1000 additional persons.additional persons.

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Electronic Mail EmoticonsElectronic Mail Emoticons

How would you interpret these emoticons if seen How would you interpret these emoticons if seen in a message you received?in a message you received? :-K:-K :-@:-@ :’-(:’-( *:O)*:O) C=:-)C=:-) :-I:-I :-\:-\ ‘:-)‘:-)

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Electronic Mail EmoticonsElectronic Mail Emoticons

Typical intended meanings of certain emoticons:Typical intended meanings of certain emoticons: :-K :-K beats mebeats me :-@ :-@ screamingscreaming :’-(:’-( cryingcrying *:O) *:O) clowningclowning C=:-)C=:-) cookingcooking :-I :-I HmmmHmmm :-\:-\ skepticalskeptical ‘:-)‘:-) devilishdevilish

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Management Concerns - Electronic MailManagement Concerns - Electronic Mail

Are employees using email capabilities only for Are employees using email capabilities only for intended purposes?intended purposes?

Have procedures been provided identifying Have procedures been provided identifying specific usage policies?specific usage policies?

Should employee email messages be monitored?Should employee email messages be monitored?

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TelecommutingTelecommuting

TelecommutingTelecommuting: employee working at home and : employee working at home and transferring data to and from officetransferring data to and from office

TeleworkingTeleworking: form of telecommuting referring to : form of telecommuting referring to working away from the office but not necessarily working away from the office but not necessarily to home (“telecommuting” is sometimes used to to home (“telecommuting” is sometimes used to refer to this option, too)refer to this option, too)

Virtual officeVirtual office: seeming to be conducting business : seeming to be conducting business from an office, without needing to be in any one from an office, without needing to be in any one locationlocation

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Telecommuting, continuedTelecommuting, continued

Advantages include reduction in travel time and Advantages include reduction in travel time and travel cost, pollution, ability to work any time of travel cost, pollution, ability to work any time of day or night, reduction in needed office spaceday or night, reduction in needed office space

Disadvantages include problems with supervision Disadvantages include problems with supervision of employees, lack of social interaction, of employees, lack of social interaction, inappropriateness for some types of jobsinappropriateness for some types of jobs

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File Transfer Protocol (FTP)File Transfer Protocol (FTP)

FTPFTP: rules used to transfer files from one location : rules used to transfer files from one location to anotherto another

Software is available for this use, such as Software is available for this use, such as WS_FTP.WS_FTP.

Browsers can also be used to access files. Instead Browsers can also be used to access files. Instead of using HTTP:// preceding a desired Web of using HTTP:// preceding a desired Web address, FTP:// is used to indicate the rules to use address, FTP:// is used to indicate the rules to use preceding the name and location of the desired filepreceding the name and location of the desired file

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NewsgroupsNewsgroups

NewsgroupsNewsgroups: discussion areas available on a : discussion areas available on a continually expanding, wide range of topics. continually expanding, wide range of topics. People who access a newsgroup can simply read People who access a newsgroup can simply read information provided by others or can add (“post”) information provided by others or can add (“post”) their own information to the newsgroup.their own information to the newsgroup.

Newsgroups have several main categories of Newsgroups have several main categories of topics, as well as subcategories separated by dots, topics, as well as subcategories separated by dots, e.g., misc.jobs.offerede.g., misc.jobs.offered

FAQsFAQs: frequently asked questions; these should be : frequently asked questions; these should be read before contributing to a newsgroupread before contributing to a newsgroup

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Mailing ListsMailing Lists

Also called “Also called “LISTSERVsLISTSERVs”” Use email for discussions; messages go to Use email for discussions; messages go to

everyone who has subscribed. May be moderated everyone who has subscribed. May be moderated or unmoderated. If unmoderated, no one screens or unmoderated. If unmoderated, no one screens messages before they are transmitted to list.messages before they are transmitted to list.

SpammingSpamming: using mailing lists to send undesired : using mailing lists to send undesired materials such as advertisements to those on materials such as advertisements to those on mailing listmailing list

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IntranetsIntranets

IntranetIntranet: use of Internet technology for : use of Internet technology for communication within an organization. Web communication within an organization. Web pages are used to provide internal data. Usually pages are used to provide internal data. Usually quicker and less expensive to change/update than quicker and less expensive to change/update than printed materials. printed materials.

FirewallFirewall: form of security to prevent outsiders : form of security to prevent outsiders from accessing internal data or to restrict internal from accessing internal data or to restrict internal users to particular sectionsusers to particular sections

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ExtranetsExtranets

ExtranetExtranet: use of Internet technology for : use of Internet technology for communication between organizations, where the communication between organizations, where the outside organization has access to designated parts outside organization has access to designated parts of the intranet, e.g., for monitoring inventory and of the intranet, e.g., for monitoring inventory and the need for materials/suppliesthe need for materials/supplies

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