Topic 1 - Introduction to E-Commerce

1) Internet risks – give examples of four things that can go wrong with a transactional site?

• Trust and Authenticity: In e-commerce, the issue that attracting most attention is verifying the identity and authority of the (virtual) person. The technical perspective is mostly about electronic signatures, cryptography, secure authentication servers, etc... we can notice that there are many blackmail and fraud opportunities, which create a different set of issues for authenticity.
• Fraud: Fraud is a major issue when the transaction is made on the internet. One of the biggest concerns was the threat of credit cards being stolen through the online purchase procedure.  There is always an opportunity for this to occur.
• Security: Nowadays, many threats are spreading over the web such as Trojans, Viruses, Spywares, SPAM,...
• Hacking: Hacking is the process of gaining unauthorized access to a computer system. There are many ways this can be accomplished, but the three most common are:
  1. Exploiting preexisting bugs in the target system software to gain access.
  2. Taking advantage of a system's poorly configured software security protocols to gain access.

2) Write down a definition for each:

a) E-commerce is one specific aspect of an e-business focused on either buying or selling products or services over the Internet. 

b) E-business is about how organizations are using Internet technologies to fundamentally change the way they do business:

• How companies use the Internet to run themselves more efficiently.
• How companies use the Internet to interact with others (suppliers, customers, and partners) more efficiently.

3) What is the difference between buy side and sell side eCommerce?

• Sell-Side: focused specifically on selling products and services over the Internet typically through an electronic storefront or website.
• Buy-Side: focused specifically on consolidating purchasing for manufacturing components and MRO (Maintenance, Repairs & Operations) products over the Internet typically by using a Web-based supply chain and delivery solution.

4) Describe the different types of e-Business.

• B2B (Business to Business): A transaction that occurs between two companies, as opposed to a transaction involving a consumer. The term may also describe a company that provides goods or services for another company.
  
• B2C (Business to Consumer): A transaction that occurs between a company and a consumer. The term may also describe a company that provides goods or services for consumers.
• B2G (Business to Government): Feedback to government businesses and NGO's.
• C2B (Consumer to Business): Means through which consumers decide what they want to pay, and the vendors decide whether or not to accept.
• C2C (Consumer to Consumer): Means through which consumers interact with other consumers through, for example, online auctions.
• C2G (Consumer to Government): Feedback to government through pressure group or individual sites.
• G2B (Government to Business): Refers to a government agency communicating with or purchasing products or services from a business.
• G2C (Government to Consumer): The communication link between a government and private individuals or residents.
• G2G (Government to Government):  is the electronic sharing of data and/or information systems between government agencies, departments or organizations. The goal of G2G is to support e-government initiatives by improving communication, data access and data sharing.

5) Which digital technology has the highest penetration rate? Explain and source your answer.

The digital technology which has the highest penetration rate is mobile phones. The impressive growth in the number of mobile cellular subscribers is mainly due to developments in some of the world’s largest markets. The economies of Brazil, Russia, India and China are expected to have an increasingly important impact in terms of population, resources and global GDP share. These economies alone are expected to account for over 1.3 billion mobile subscribers by the end of 2008.


ITU recently published two regional reports for Africa and Asia, which indicate how mobile telephony is changing peoples’ lives. Apart from providing communication services to previously unconnected areas, mobile applications have opened the doors to innovations such as m-commerce to access pricing information for rural farmers and the use of mobile phones to pay for goods and services.

 

http://www.itu.int/newsroom/press_releases/2008/29.html

6) List: Four drivers to adoption of sell-side e-commerce by business.

The drivers to the adoption of sell-side e-commerce by businesses are:

• Free Marketing

The marketing cost are reduced due to the sales and advertising is done online.

• Expand their market

It is beneficial for businesses to utilize sell-side e-commerce to increase the amount of consumers they can target across a larger geographic area.

• Decrease amount of inventory needed/free-up capital

If a business were to utilize sell-side e-commerce, their customers would be able to make purchases online. Therefore the company would be able to implement a JIT distribution system reducing the amount of inventory they would need to store.

• Reduce the risk of loss

By doing business through sell-side e-commerce businesses will be able to reduce the risk of loss to the business. 

7) Four barriers to adoption of sell-side e-commerce by business.

• Identification of products or services can be tricky due to poor quality content which includes descriptions and images as well as poor searching capabilities. 
• Cultural barriers which includes internet accessibility and language barriers. 
• Customers fear of change. Some customer would be more inclined to use the internet as a way to purchase goods and services as opposed to others. Therefore the customer base could be reduced by the adoption of sell side E-Commerce however this could depend on the target market. 
• Lack of technical competency. The customer might not have technical knowledge or understanding to use the online store

8) Write a a paragraph or two describing the current importance of ICT in your professional life.


First of all, I have noticed that Internet facilitates many things in our lives in terms of communication. Nowadays, with the launch of the Web 2.0 people can share and spread there ideas, opinions, videos, music,...Thanks to this technology, many businesses make profits through the whole world and everyday there is new opportunity and new concepts in making a business.
In my opinion, ICT is a fundamental need for each of us. The communication's speed and quality is a gain of time and time is really important in our everyday life.