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Commerce
Commerce refers to all the activities the purchase and sales of goods or services.
eCommerce
ecommerce is more then just an online shop selling goods. Businesses make huge savings by more efficient interaction with their suppliers or buyers.
A local pharmacist orders 60% of his supplies from an overseas pharmaceutical suppliers website and saves 5% in his purchases - is this ecommerce? A remote Fiji resort attracts guests from the USA after several exchanges of email. Is this ecommerce?
Brief History
Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-commerce within companies
Used by businesses to transmit data from one business to another
1990s: the World Wide Web on the Internet provides easy-to-use technology for information publishing and dissemination
Cheaper to do business (economies of scale) Enable diverse business activities (economies of scope)
Features of E-Commerce
1. Payment - credit card, smart cards, E-money 2. Service availability - business among enterprises, customers, suppliers and employees anytime, anywhere. 3. Advertising and marketing-advertising products and services. 4. Sales- Generating orders for the product. 5. Fulfillment Processing the order and delivering the product. 6. Secure Communications-Fast, efficient, reliable communication with customers and partners.
Increased sales
Reach narrow market segments in geographically dispersed locations Create virtual communities
Decreased costs
Handling of sales inquiries Providing price quotes Determining product availability
Attract customers
Advertising, marketing
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Security Schemes
Encryption
Digital Signatures
Digital signatures are a means of ensuring authentication of electronic information. A digital signature is an electronic signature whose authenticity is guaranteed through encryption and a password.
Private Key- A unique combination known only to the signer. It is used to encrypt the message. Message Digest-The encrypted message that is created with the help of the Private key- A code sent to the receiver separately to enable decryption of the message digest. It is also available on the web site of the certification Authority
Security Certificate
Just as a passport is a universal way to establish your identity and gain entry to another country, a digital or security Certificate provides identification in the electronic world. Certificate authorities (CAS) are organizations that issue security certificates.
Fire wall
The ICSA (International Computer Society Association) defines firewall as a system or group of systems that enforces an access control policy between two computer networks.
Conclusion
Electronic business methods enable companies to link their internal and external data processing systems more efficiently and flexibly, to work more closely with suppliers and partners, and to better satisfy the needs and expectations of their customers. E-Business systems naturally have greater security risks than traditional business systems, therefore it is important for e-business systems to be fully protected against these risks. A far greater number of people have access to e-businesses through the internet than would have access to a traditional business.
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