ISP500 Topic 4 E-Business and E Commerce_C7

Chapter Overview

  • Title: E-Business and E-Commerce

  • Course: ISP500 Foundation of Information Systems of ISP SECURITY 500

  • Instructor: Nur Suhailavani Subaimill

Learning Objectives

  • Describe the six common types of e-commerce.

  • Describe the various online services of business-to-consumer (B2C) commerce.

  • Identify the ethical and legal issues related to electronic commerce.

Chapter Outline

  • Overview of E-Business and E-Commerce

  • Business-to-Consumer (B2C) Electronic Commerce

  • Business-to-Business (B2B) Electronic Commerce

  • Ethical and Legal Issues in E-Business

Definitions and Concepts

Electronic Commerce (E-Commerce)

  • Definition: The process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet.

Electronic Business (E-Business)

  • Definition: A broader concept that includes not only the buying and selling of goods and services but also servicing customers, collaborating with business partners, and performing electronic transactions within an organization.

Major E-Commerce Mechanisms

  • Electronic Catalogs:

    • Consist of a product database and presentation functions; backbone of most e-commerce sites.

    • Example: IKEA catalog.

  • Electronic Auctions:

    • Competitive buying/selling process with dynamic price setting.

    • Types:

      • Forward Auctions: Sellers solicit bids from potential buyers (e.g., eBay).

      • Reverse Auctions: Buyer seeks bids from sellers (e.g., government procurement).

  • E-Storefronts:

    • A website that represents a single store (e.g., IKEA.com).

  • E-Malls:

    • Collection of individual shops under one Internet address (e.g., Amazon.com).

  • E-Marketplaces:

    • A central virtual market for multiple buyers and sellers; typically associated with B2B e-commerce.

Electronic Payment Mechanisms

  • Overview: Enables electronic payment for goods and services, including various mechanisms:

    • Electronic Checks (E-Checks): Similar to paper checks for B2B transactions.

    • Electronic Cards: Include credit, virtual, purchasing, and smart cards.

    • Person-to-Person Payments: Allow fund transfers without a credit card (e.g., PayPal).

    • Digital Wallets: Applications for financial transactions on smartphones (e.g., GrabPay).

Types of E-Commerce

Business-to-Consumer (B2C)

  • In B2C, organizations sell to individuals.

  • Examples: Amazon, eBay.

  • Key Issues: Channel conflict, order fulfillment.

Business-to-Business (B2B)

  • B2B involves businesses selling to other businesses.

  • Major Models: Sell-side marketplaces, buy-side marketplaces, electronic exchanges.

Consumer-to-Consumer (C2C)

  • Individuals sell goods or services to other individuals (e.g., eBay).

Business-to-Employee (B2E)

  • Organizations use e-commerce to provide services to employees, like benefits management.

E-Government

  • Use of Internet technology to deliver public services (G2C, G2B).

  • Example: Electronic benefits transfer.

Ethical and Legal Issues in E-Business

Ethical Issues

  • Privacy Concerns: Potential invasion of buyer’s privacy.

  • Job Loss: Automation of e-business affecting employment.

Legal Issues Specific to E-Commerce

  • Internet Fraud: Rapid growth of fraudulent activities online.

  • Domain Name Issues: Competition and conflicts over domain registration.

  • Cybersquatting: Registering domain names to profit from others' trademarks.

  • Tax Legislation: Complexity of taxation in interstate and international e-commerce.

  • Copyright: Protection of intellectual property and misuse of software.