E-Commerce Lecture Notes Flashcards

Flashcards covering key vocabulary and concepts from the e-commerce lecture notes.

E-commerce

Digitally enabled commercial transactions between and among organizations and individuals.

E-business

Digital enabling of transactions and processes within a firm, involving information systems under firm’s control.

Technological Building Blocks Underlying E-Commerce

The Internet, World Wide Web (HTML, Deep Web), and Mobile platform (Mobile apps)

Major Trends in E-Commerce

All forms of e-commerce show very strong growth; Mobile platform has made mobile e-commerce reality; Increased online social interaction and sharing

Unique Features of E-Commerce Technology

Ubiquity, Global reach, Universal standards, Information richness, Interactivity, Information density, Personalization/customization, Social technology

Types of E-Commerce

Business-to-Consumer (B2C), Business-to-Business (B2B), Consumer-to-Consumer (C2C), Mobile e-commerce (M-commerce), Social e-commerce, Local e-commerce

Precursors to E-Commerce

Baxter Healthcare modem-based system, Order entry systems, Electronic Data Interchange (EDI) standards, French Minitel

Reinvention of E-Commerce (2007-Present)

Rapid growth of Web 2.0 (including online social networks), Mobile platform, Local commerce, On-demand service economy

Internet

Interconnected network of thousands of networks and millions of computers linking businesses, educational institutions, government agencies, and individuals.

World Wide Web (Web)

One of the Internet’s most popular services providing access to billions (possibly trillions) of web pages.

Internet Definition

Uses IP addressing, Supports TCP/IP, Provides services to users (similar to telephone system)

Packet Switching

Slices digital messages into packets, sends packets along different communication paths, reassembles packets at destination, uses routers, and is less expensive/wasteful than circuit-switching.

Transmission Control Protocol (TCP)

Establishes connections among sending and receiving Web computers and handles assembly/reassembly of packets.

IPv4

32-bit number with four sets of numbers marked off by periods.

IPv6

128-bit addresses, able to handle up to 1 quadrillion addresses.

Domain name

IP address expressed in natural language.

Domain name system (DNS)

Allows numeric IP addresses to be expressed in natural language.

Uniform resource locator (URL)

Address used by Web browser to identify the location of content on the Web.

Client/Server Computing

Powerful personal computers connected in a network with one or more servers where servers perform common functions for the clients.

Internet 'Cloud Computing' Model

Firms and individuals obtain computing power and software over the Internet.

Hourglass Model of the Internet

Lower layer contains bit-carrying infrastructure and upper layer contains user applications, with transportation protocols in the narrow waist.

Internet Exchange Points (IXPs)

Regional hubs where Tier 1 ISPs physically connect with one another and with regional Tier 2 ISPs.

Intranet

TCP/IP network located within a single organization for communications and processing.

Reasons the Internet has boomed without Disruption

Hourglass, layered architecture, Network Technology Substrate, Transport Services and Representation Standards, Middleware Services, Applications

The Internet2 Project

Consortium of 450+ institutions collaborating to facilitate revolutionary Internet technologies.

First Mile

Backbone Internet services that carry bulk traffic over long distances.

Last Mile

From Internet backbone to user’s computer/smartphone.

Fiber-optic Cable

Hundreds of glass strands that use light to transmit data.

Wi-Fi

High-speed, fixed broadband wireless LAN with wireless access points.

Internet of Things (IoT)

Objects connected via sensors/RFID to the Internet.

Hypertext

Text formatted with embedded links connecting documents to one another with HTTP and URLs.

Hypertext Markup Language (HTML)

Fixed set of predefined markup tags used to format text and control the look/feel of web pages.

Extensible Markup Language (XML)

Designed to describe data/information with user-defined tags.

Web server software

Enables a computer to deliver web pages to clients by sending an HTTP request, with basic capabilities such as security services, FTP, search engine, and data capture.

Web client

Computing device attached to the Internet capable of making HTTP requests and displaying HTML pages.

Web client

Any computing device attached to the Internet that is capable of making HTTP requests and displaying HTML pages

Streaming technologies

Enables music, video, and other large files to be sent to users in chunks so that the file can play uninterrupted

Online Social Networks

Services that support communication among networks of friends / peers.

Blogs

Personal web page of chronological entries enabling web page publishing with no knowledge of HTML.

Wikis

Enables documents to be written collectively and collaboratively.

Virtual reality

Immersing users within a virtual world, typically using a head-mounted display (HMD)

Augmented reality

Overlaying virtual objects over the real world, via mobile devices or HMDs

Intelligent Digital Assistants

Computer search engine using natural language and situational awareness with a conversational interface to handle requests.

Outsourcing:

Hiring vendors to provide services involved in building a site

System design specification:

Description of main components of a system and their relationship to one another

Scalability:

Ability of site to increase in size as demand warrants

Website design:

Basic business considerations that enables customers to find and buy what they need

Site Management Tools

Basic tools included in all web servers to Verify that links on pages are still valid and identify orphan files.

Dynamic page generation:

Contents stored in database and fetched when needed

Web application servers:

Provides specific business functionality required for a website

E-Commerce Merchant Server Software

Provides basic functionality for sales - Online catalog, Shopping cart, Credit card processing

Personalization:

Ability to treat people based on personal qualities and prior history with site

Customization:

Ability to change the product to better fit the needs of the customer

Privacy policy:

Set of public statements declaring how site will treat customers’ personal information that is gathered by site

Responsive web design (RWD):

CSS site adjusts layout of site according to device screen resolutions

Adaptive web design (AWD):

Server delivers different templates or versions of site optimized for device

Encryption:

Transforms data into cipher text readable only by sender and receiver that secures stored information and information transmission

Sniffer

program monitoring networks and be used by criminals to steal proprietary information

Denial of service (DoS) attack:

Flooding website with pings and page request to overwhelm and can shut down site’s web servers

Distributed Denial of Service (DDoS) attack:

Uses hundreds or thousands of computers to attack target network

Phishing:

attempt to Obtain confidential information for financial gain

Secure Sockets Layer (SSL)/Transport Layer Security (TLS)

establishes secure, negotiated client–server session. Certificates play a key role in using SSL/TLS to establish a secure communications channel.

Virtual Private Network (VPN)

Allows remote users to securely access internal network via the Internet.

Firewall

Hardware or software that uses security policy to filter packets

Encryption

Transforms data into cipher text readable only by sender and receiver

Proxy servers (proxies)

Software servers that handle all communications from or sent to the Internet

E-Commerce Payment Systems:

In U.S., credit and debit cards are primary online payment methods

Business model

Set of planned activities designed to result in a profit in a marketplace.

Marketspace:

An area of actual or potential commercial value in which company intends to operate

Competitive Advantage:

What special advantages does your firm bring to the marketspace?

Organizational Development:

What types of organizational structures within the firm are necessary to carry out the business plan?

E-tailer

Online version of a traditional retailer.

Community Provider

Provides an online environment where people with similar interests can transact, share content, and communicate.

Content Provider

Digital content delivered on the Web.News, music, video, text, artwork

Portal

Search plus an integrated package of content and services

Transaction Broker:

Processes online transactions for consumers, saving time and money

Market Creator:

Creates digital environment where buyers and sellers can meet and transact

Service Provider:

Provides online services, valuable, convenient, time-saving, low-cost alternatives to traditional service providers

Industry Consortia:

Industry-owned vertical digital marketplace open to select suppliers

How E-Commerce Changes Business

Changes industry structure by changing: Rivalry among existing competitors, Barriers to entry, Threat of new substitute products, Strength of suppliers,Bargaining power of buyers

Business Strategy:

A plan for achieving superior long-term returns on capital invested: that is, profit

Search engine marketing (SEM):

Use of search engines for branding. paid inclusion, pay per click

Direct e-mail marketing

Messages sent directly to interested users

Viral marketing:

Marketing designed to inspire customers to pass message to others

Lead generation marketing:

Services and tools for collecting, managing, and converting leads

Social marketing and advertising:

Use of online social networks and communities to market to their users

Mobile marketing and advertising

The market to online users through use of mobile platform

Location-based marketing:

The targeting of messages to users based on location

Spam (junk) websites:

Collection of advertisements for other sites, which may contain malicious code

Outsourcing:

Involves Hiring vendors to provide services involved in building site

Esablishing Customer Relationship

Website functions to: Establish brand identity and customer expectations, Anchor the brand online, Inform and educate customer, Shape customer experience

Service Provider:

Online services that can have sales of services, subscription fees, advertising, sales of marketing data

Personalization:

Ability to treat people based on personal qualities and prior history with site Cookie

Privacy policy:

Set of public statements declaring how site will treat customers’ personal information that is gathered by site

Good E-Commerce Security

E-commerce security is multi- layered, and must take into account new technology, policies and procedures, and laws and industry standards

Digital Certificates

Used in e-commerce to assure the identity of transaction partners.

Hourglass Model of the Internet

The Internet can be characterized as an hourglass modular structure with a lower layer containing the bit-carrying infrastructure (including cables and switches) and an upper layer containing user applications such as e-mail and the Web

Mobile marketing

Mobile marketing that is aimed often at local audiences and is the fastest growing form of online marketing, followed closely by social marketing on social networks

The Social Marketing Process

The social marketing process has five steps

effectiveness of a Mobile Marketing Campaign

Internet marketing that can be measured by examining the number of Likes, posts, page views, time on site, and unique visitors.