What’s more, tech features are giving entrepreneurs the ability to … They are issued by banks or clearinghouses and kept in registries so that authenticated users can look up other users’ public keys. Nearly every business is concerned with collecting payment for the goods and services it sells. However, these networks are too expensive for all but the largest 100,000 of the 6 million businesses in existence today in the United States. 0 E-Business. The international payment clearing system, consisting of more than 100 financial institutions, handles more than one trillion dollars per day. To everybody else, it is gobbledygook. After encryption, the message is totally secure (see Exhibit 15). It contains a person’s name, a serial number, expiration date, a copy of the certificate holder’s public key (used for encrypting and decrypting messages and verifying digital signatures), and the digital signature of the certificate-issuing authority so that a recipient can verify that the certificate is real. 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. Many of the pieces necessary to facilitate electronic commerce are mature, well-tested technologies, such as public-key encryption. A variety of authentication mechanisms may be used (see Exhibit 12). Similarly, Infinite Analytics delivers AI-powered personalization solutions by interacting with users through text and voice messages, while also being able to identify and find products based on pictures. Web strategy: Attracting and retaining visitors, 4. Coding or encryption techniques, as old as writing, have been used for thousands of years to maintain confidentiality. For example, one of your friends may find it amusing to have some fun at your expense (see Exhibit 16). Brand protection (invisible digital markers to help fight counterfeit products). Twenty million smart cards are already in use in France, where they were introduced a decade earlier. So when you log into your Amazon and purchase a book, this is a classic example of an e-commerce transaction. Data access control , the major method of controlling access to stored data, often begins with some form of visitor authentication, though this is not always the case with the Web because many organizations are more interested in attracting rather than restricting visitors to their Web site. Secure transmission of information is necessary for electronic commerce to thrive. The advantage of SET is that a consumer’s credit card number cannot be deciphered by the merchant. Companies that create personalized customer experiences will be the ones that win in 2018 and beyond. The simplest approach is to use the Internet as a means of replacing a VAN by using a commercially available Internet EDI package. These methods of restricting access and encoding are still appropriate. Exhibit 8. Firms following the same standard can electronically share data. Kalakota, R., and A. Applegate, L. M., C. W. Holsapple, R. Kalakota, F. J. Rademacher, and A. Computers can communicate with each other when they speak a common language or use a common communication protocol. This layer consists of software for sending and receiving messages. 1997. This trend is leading to the launch of new e-commerce apps, as e-tailers are encouraging their customers to shop via mobile-based apps. For instance, using the preference features of your browser, you can indicate the font and size for presenting information. 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). In addition, credit card issuers sought the protection of more advanced anti-fraud measures. 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. When commerce goes electronic, the means of paying for goods and services must also go electronic. This chapter will provide you with the wherewithal to understand the technology that enables an organization to make this transformation. This could be achieved in different ways by applying different technologies.Depending on your budget and business needs, you can choose from: 1. Exhibit 13.: Encryption with a public-key system. Both Internet Explorer and Netscape Navigator allow surfers to set options for various levels of warnings about the use of cookies. The U.S. will spend about $460 billion online in … Electronic commerce topologies. At the same time, ecash provides the privacy of cash because the payer can remain anonymous. Hackers can use computers to intercept network traffic and scan it for confidential information. That is, an array of computers can connect to each other. The web server runs on a Windows or Linux operating system. Communication is confined to the computers linking the two organizations. Here you can download the free lecture Notes of E Commerce Pdf Notes – EC Notes materials with multiple file links to download. A web server is used to host an e-commerce website. And as mobile penetration increases, along with better quality services, this trend is assured to grow. Think of a digital certificate as an electronic credit card. Consider the case of a book seller with an on-line catalog (see Exhibit 6). It is not as secure as the other alternatives, but most people are likely to carry only small amounts of digital cash and thus security is not so critical. Journal of Organizational Computing and Electronic Commerce 6 (1):1-10. E-commerce has come a … B) About 200 million U.S. consumers use mobile apps. Its purpose is to restrict the access of outsiders to the intranet. The major shortfall of EFT is that all transactions must pass through the banking system, which is legally required to record every transaction. A Domain Name Server (DNS) converts aussie.mgmt.uga.edu to the IP address The payment gateway is the bridge between SET and the existing payment network. For example, many search functions on … One of the most common roadblocks that online retailers haven’t completely overcome yet is... Data Integration. If the intention is to inform the reader, then there is generally less concern with how the information is rendered. 997E018. 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. Convenience is an essential value proposition associated with e-commerce. The creator of a Web site often wants to remember facts about you and your visit. The simplest method is to restrict traffic to packets with designated IP addresses (e.g., only permit those messages that come from the University of Georgia–i.e., the address ends with uga.edu). Technology also enables enhanced search, customization, and personalization, which are fast becoming “must-have” capabilities for e-commerce success. The problem with digital cash, like real cash, is that you can lose it or it can be stolen. Electronic checking is fast; transactions are instantaneous. All electronic money systems are potentially divisible. Thus, as part of the subscription sign-up, subscribers have to supply their public key, and when using the service, sign all electronic messages with their private key. A public-key encryption system has two keys: one private and the other public. In some situations, however, an organization may want to restrict connection capabilities. Those origins date to the 1948–49 Berlin blockade and airlift with a system of ordering goods primarily via telex. Cisco Systems Inc.: managing corporate growth using an Intranet. Although this phenomenon is still in its experimental stage, we can easily see its disruptive potential should it be implemented on an industry-wide scale. Redefining the Consumer Shopping Experience: E-commerce industry has … Thus, the business services layer supports secure transmission of credit card numbers by providing encryption and electronic funds transfer. 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. London, Canada: University of Western Ontario. Any computer connected to the Internet can communicate with any server in the system (see Exhibit 5). They have to abandon existing business practices to create new ways of interacting with stakeholders. The combination of SSL and fraud-detection software has so far provided low-cost, adequate protection for electronic commerce. 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. TCP/IP has two parts. You need a password to access your account and electronic transactions are encrypted. Characteristics of electronic money. Its purpose is to deliver a message from a server to a client. Adobe’s Acrobat Exchange software permits any document created by a DOS, Macintosh, Windows, or Unix application to be converted to PDF. The successful management of extreme market and spiked-demand has, therefore, become the new focus area, optimizing the supply chain management process for these companies and playing a critical role in ensuring efficient and faster delivery models. Security is an eternal concern for organizations as they face the dual problem of protecting stored data and transported messages. To decipher a PDF file, the recipient must use a special reader, supplied at no cost by Adobe for all major operating systems. Topologies for electronic cooperation. Cookies have several uses. The differences between HTML and PDF are summarized in Exhibit 7. Forrester also predicts that in-person mobile payments will become a fast-growing segment, while remote mobile payments will constitute over 65% of mobile payments by 2021. Parent, M. 1997. EDI, with its roots in the 1960s, is a system for exchanging text, and the opportunity to use the multimedia capabilities of the Web is missed if a pure replacement strategy is applied. In the case of fraud in the U.S., banks already protect consumers, who are typically liable for only the first USD 50. The story of Amazon.com is an e-commerce dream. The TCP part of TCP/IP is responsible for splitting a message from the sending computer into packets, uniquely numbering each packet, transmitting the packets, and putting them together in the correct sequence at the receiving computer. To send and receive messages, communicators first need to create separate pairs of private and public keys and then exchange their public keys. Internet technology can be used to support communication and data transfer between two value chains. The main function of the web server is to deliver Technologies are no doubt creating an impact on e-commerce businesses giving sellers various opportunities and advantages. E-Business is the term used to describe the information systems and applications … Find out what Amazon does, what makes it different from other e-commerce Web sites and how its technology infrastructure supports its multi-pronged approach to online sales. The rapid growth of electronic commerce is clear evidence of the reliability and robustness of the underlying technology. While not all markets may be as technologically advanced in the retailing areas as China and South Korea, many retail and manufacturing businesses around the world can benefit from a more proactive e-commerce strategy, as technology enabled solutions become even more sought after and preferred. The system is designed to provide secure payment between computers using e-mail or the Internet. eCommerce global trends indicate that mobile devices will become the central piece of technology used to discover, research, and purchase goods and services. E-commerce software 3. 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. Ensuring on-time delivery is a key differentiating factor for companies in the e … Internet messages can pass through many computers on their way from sender to receiver, and there is always the danger that a sniffer program on an intermediate computer briefly intercepts and reads a message. Any money system, real or electronic, must have a reasonable level of security and a high level of authentication, otherwise people will not use it. An organization can have multiple extranets to link it with many other organizations, but each extranet is specialized to support partnership coordination. In addition, a public-key encryption system can be used to authenticate messages. Here are the five emerging technologies that will impact e-commerce the most. A banking system has one or more common clearinghouses that facilitate the flow of funds between accounts in different banks. Visa and MasterCard founded SET as a joint venture on February 1, 1996. Warehouse management (robot technology for collaborative automated order picking), Infrastructure (deploying drones to inspect bridges), and. Messages can be sent from one computer to another only when every server on the Internet is uniquely addressable. Although encryption is primarily used for protecting the integrity of messages, it can also be used to complement data access controls. Exhibit 17.: Signing with a public-key system. The cost of linking using Internet technology is an order of magnitude lower than using commercial communication networks for electronic data interchange (EDI) , the traditional approach for electronic cooperation between business partners. A firewall (see See Firewall) is used to restrict access so that people outside the organization cannot access the intranet. 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. Other servers can be enabled by using Netscape’s SSLRef program library, which can be downloaded for noncommercial use or licensed for commercial use. PDF is an operating system independent and printer independent way of presenting the same text and images on many different systems. The sniffer program, looking for a typical credit card number format of four blocks of four digits (e.g., 1234 5678 9012 3456), copies your message before letting it continue its normal progress. Two common approaches to electronic publishing are Adobe’s portable document format (PDF) and HTML. The Automatic Teller Machine (ATM), credit cards, telephone backing etc are all technologies used within E-Commerce. Oracle Commerce holds 0.36% of the ecommerce market share. Web server Software. E-commerce originated in a standard for the exchange of business documents, such as orders or invoices, between suppliers and their business customers. They realized that in order to promote electronic commerce, consumers and merchants would need a secure, reliable payment system. Consumers and organizations need to be assured that their on-line orders are protected, and organizations must be able to transfer securely many millions of dollars. PDF is a page description language that captures electronically the layout of the original document. A modified credit card system, which automatically sends previously stored details from your personal computer, could be used for small transactions. Paper should be the exception, not the rule. The economies gained from low-cost Internet software and infrastructure mean many more buyers and supplier pairs can now cooperate electronically. Electronic data interchange (EDI), e-mail, and hypertext text transfer protocol (HTTP) are examples of messaging software. Post-Modernism and the Web: Societal effects. An organization that simply wants to publicize its products and services may operate a simple firewall with limited screening rules. Technology is the backbone of e-commerce. There is a need, however, to adapt some systems so that transactions can be automated. Digital supply chain. 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. For example, it could move an HTML file from a Web server to a client running Netscape. Paper handling costs are substantially reduced. Routing is the process of determining the path a message will take from the sending to the receiving computer. 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. EFT is flexible; it can handle high volumes of consumer and commercial transactions, both locally and internationally. 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. | 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. Ensuring on-time delivery is a key differentiating factor for companies in the e-commerce space. According to recent estimates by eMarketer, worldwide retail sales are expected to reach $4 trillion by 2020. Digital certificates uniquely identify the parties to a transaction. Electronic funds transfer (EFT), introduced in the late 1960s, uses the existing banking structure to support a wide variety of payments. In cases where the content of the message is not confidential, the receiver may still wish to verify the sender’s identity. There is still a need to consider addressability (i.e., a URL) and have a common language across the network (i.e., HTTP and HTML). Bad checks are no longer a problem because the seller’s account balance is verified at the moment of the transaction. A cookie is a small file (not more than 4k) stored on your hard disk by a Web application. We still rely on personal signatures for checks and legal contracts, but how do you sign an e-mail message? Inventory management (hack-proof RFID chips). Exhibit 5.: Electronic commerce infrastructure. The microprocessor can be programmed. In today’s hyper-commoditized market, where differentiating a business from the likes of giants like Amazon, Alibaba, and Flipkart, is becoming increasing difficult; e-commerce vendors are focusing on providing a superior customer experience. Often the person using the browser can specify how the information will be presented. The fidelity of the original document is maintained–text, graphics, and tables are faithfully reproduced when the PDF file is printed or viewed. 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. A second layer of defense can be a firewall , a device (e.g., a computer) placed between an organization’s network and the Internet. Here you interact with the seller (Amazon), exchange data in form of pictures, text, address for delivery etc. VANs add communication services to those provided by common carriers (e.g., AT&T in the U.S. and Telstra in Australia). Specifically, startups specializing in warehousing and logistics solutions are gaining traction as they offer great automation opportunities to e-commerce companies. Societies have always needed secure methods of transmitting highly sensitive information and confirming the identity of the sender. The phonecard, the most common form of prepaid card, was first issued in 1976 by the forerunner of Telecom Italia. Circuit switching is commonly used for voice and package switching for data. The Internet and intranet, as the names imply, are networks. The principal purpose of this layer is to support common business processes. These various technologies created a layered, integrated infrastructure that permits the development and deployment of electronic commerce applications (see Exhibit 9). The transaction is then electronically transmitted to an intermediary (usually the banking system), which transfers the funds from the buyer’s account to the seller’s account. Unarguably, Shopify is one of the most popular and highly preferred web technologies … Port management (autonomous freight shuttle debuts). Shopify is a very popular SEO compliant and constantly evolving web technology for an e … As a result, many businesses have not been able to participate in the benefits associated with EDI. To use ecash, you need a digital bank account and ecash client software. 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. This involves the transaction of goods and services, the transfer of funds and the exchange of data. A structured, standardized data format is used to exchange common business documents (e.g., invoices and shipping orders) between trading partners. Cookies are a useful way of collecting data to provide visitors with better service. As more people embrace digital technologies, companies are betting on innovative technologies to capture more customers and create differentiated experiences online. The elegance of the public-key system is that it totally avoids the problem of secure transmission of keys. The Rise of E-commerce Sites IP numbers are difficult to recall. In the first chapter, we argued that organizations need to make a metamorphosis. A sender’s private key is used to create a signed message . Another screening rule is to restrict access to certain applications (e.g., Web pages). If a Web site is using a Netscape server, SSL can be enabled and specific Web pages can be identified as requiring SSL access. Only the bank and card issuer can decode this number. The future of e-commerce will use technology to do the same thing … smarter technology that provides a better experience. Concerned with content, the Web is a very good example of this layer. In order to succeed, SET must displace the current standard for electronic transactions, SSL, which is simpler than SET but less secure. Also, a number of leading software companies are working on extensions to HTML that will give the creator greater control of the rendering of HTML (e.g., specifying the font to be used). Digicash of Amsterdam has developed an electronic payment system called ecash that can be used to withdraw and deposit electronic cash over the Internet. A recent survey in the United States showed that almost 80 percent of the information flow between firms is on paper. The main differences between an online shop and an ordinary website are the shopping cart and payment gateway features. Also, how do you know that the key’s receiver will protect its secrecy? Weisbaden, Germany: Deutscher Universitäts Verlag, 1-11. TCP handles the transport of data, and IP performs routing and addressing. Harvard Business School, 9-198-006. Organizations have always had sensitive data to which they want to limit access to a few authorized people. Thus, the you may see an image somewhat different from what the designer intended. The intruder cannot read the data without knowing the method of encryption and the key. The following set of steps illustrates SET in action. 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. Custom e-commerce platform developmentLet's have a When the customer places an order, the Web browser should automatically encrypt the order prior to transmission–this is not the customer’s task. On the merchant side, a merchant server accepts electronic credit card payments. Internet in business is used for information exchange, media promotion, electronic mail, mailing lists, dialogue, discussions, consulting with consumers online. This is further expected to give a boost to cashless payment modes and, in turn, lead to inflating e-commerce sales. A public key can be freely distributed because it is quite separate from its corresponding private key. The name is self-explanatory, it is the meeting of buyers and sellers on the internet. In effect, an electronic wallet stores a digital representation of a person’s credit card and enables electronic transactions. If senders and receivers cannot be sure that their communication is strictly private, they will not use the Internet. 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. Now, the owner of the rogue program can use your credit card details to purchase products in your name and charge them to your account. C) On-demand service firms are fueling the growth of local e-commerce. Faster, efficient and secure payment options have played a big role in driving the unprecedented growth of the e-commerce market in recent years. Reading, MA: Addison-Wesley. iQCVAwUBMeRVVUblZxMqZR69AQFJNQQAwHMSrZhWyiGTieGukbhPGUNF3aB qm7E8g5ySsY6QqUcg2zwUr40w8Q0Lfcc4nmr0NUujiXkqzTNb 3RL41w5x fTCfMp1Fi5Hawo829UQAlmN8L5hzl7XfeON5WxfYcxLGXZcbUWkGio6/d4r 9Ez6s79DDf9EuDlZ4qfQcy1iA==G6jB. It will also enable access to the global marketplace. At Campus On Fire, the company I work at, we code on JavaScript, the main reasons why we use Node.js and Angular: 1. Either B2B or B2C, the role of technology is the base and the existential factor when it comes to E-commerce industry. 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. Traditional encryption, which uses the same key to encode and decode a message, has a very significant problem. A smart card, containing memory and a microprocessor, can store as much as 100 times more data than a magnetic-stripe card. Paper-based payment systems cannot support the speed, security, privacy, and internationalization necessary for electronic commerce. The certificate authority issues and manages digital certificates, which are proofs of the identities for all parties involved in a SET transaction. Adobe, for example, uses its Web site to distribute software changes to customers and provide financial and other reports to investors. While desktop still beats mobile devices as the primary method consumers use to make eCommerce purchases, that won’t last long. Watson, R. T., P. G. McKeown, and M. Garfield. Want to keep track of emerging technology changes in a different industry? The two formats coexist. People get used to typing the words or phrases into the search bar of search … The reverse process, decryption, converts a seemingly senseless character string into the original message. 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 problem with special-purpose cards, such as phone and photocopy cards, is that people end up with a purse or wallet full of cards. Exhibit 19. The various approaches to electronic money vary in their capability to solve these concerns (see Exhibit 19). You must find another secure medium for transmitting the key. The exponential growth of the Internet will eventually result in a shortage of IP addresses, and the development of next-generation IP (IPng) is underway. Without accurate information about people’s interest, it is very difficult to provide good service. According to trade analysts, 90% of all people keep their mobile phone within reach at all times. B. Whinston. This lack of privacy can have serious consequences.7 Cash gives anonymity. 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). 7 Emerging eCommerce Technology Innovations Digitizing the Storefront. The receiver’s private key, the only one that can decrypt the message, must be kept secret to permit secure message exchange. So, do you fax the key or phone it? A cookie is the mechanism for remembering details of a single visit or store facts between visits. Finally, on top of all the other layers sits an application. 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). 1997. e-business is the application of information and communication technologies in support of all the activities of business. In addition, the Internet is a global network potentially accessible by nearly every firm.
2020 technology used in e commerce