1. ELC 200 Day 19
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2. Agenda
Assignment 7Due
Assignment 8 (last one) will be posted later this week
Quiz 3 Scores
3 A’s, 4 B’s and 1 C
NEW Course Schedule
Finish Discussion on E-core values
Begin discussion on Going On-line
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3. New schedule Apr 21 Apr 7 Getting the money Finish eCore values
Going on line
Assignment 7 due
Apr 10
eSecurity
Apr 14
Encryption
Apr 17
Apr 21
Getting the money
Assignment 8 due
Apr 24
Quiz 4
Apr 28
Presentations
Optional Assignment 9 due
May 1
Framework Paper due
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4. ETS Major Discipline Testing
WHO: Seniors in Business Mgmt., eCommerce and Comp. Apps with business concentration
WHERE: OMS 100
WHEN: Wednesday April 22 from 8:00 am to 11:00
WHY: Quality control and assessment for UMFK programs
BENEFIT to Student: provides a comparison of students knowledge in their discipline to other students in US
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5. E-Core Values: Ethical, Legal, Taxation, and International Issues

6. Intellectual Property
Intellectual property describes the ideas, inventions, technologies, music, and literature that are intangible when created and are converted into tangible products for market consumption
IP laws and cultural norms vary from country to country
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7. Copyrights, Trademarks, and Trade Names
Intellectual property: includes software, books, music, videos, trademarks, copyrights, and Web pages
Copyright: ownership of an original work created by an author
Copyright law is a law that gives the author or creator of a tangible product the right to exclude others from using the finished work
Protected works include:
Graphic works
Web sites
Good for the life of its author plus an additional 70 years after the author’s death
The Digital Millennium Copyright Act (DMCA)
Trademark: registration of a company’s trade name so that others cannot use it; a word or a symbol that distinguishes a good from other goods in the market (registered with Patent Office)
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8. Guidelines Regarding Domain Names and Trademarks
Find out whether the proposed domain name infringes on any trademarks
Secure federal trademark registration of the proposed name
Register the proposed domain name with InterNIC,
In the event of a poached domain name, bring a lawsuit to force InterNIC to reassign the name to the original owner
Get permission before linking to other Web sites
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9. Taxation Issues Sales tax is a very controversial issue
On the Internet, tax collection is not easy
The rules for taxation differ by country, state, county and town
All indicators suggest that sales-tax revenue loss is projected to increase exponentially unless something is done to collect the tax
Internet Tax Freedom Act
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10. Taxation Issues (Cont’d)
Internet Tax Freedom Act
A three-year moratorium on special, multiple, or discriminatory taxes on the Internet that would be imposed by any state or local governments
An advisory committee to explore different issues relating to Internet taxes, government Internet policy, and its effects on e-commerce
The federal government is barred from taxing the Internet or any transaction that takes place through it
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11. Internet Taxation TodayUS
ITFA extended on October 30, 2007 for 7 more years
Sales Tax Fairness and Simplification Act (H.R. 3396) in hearings
EU VAT still in place
WTO – no internet taxes
More Info
More information on Internet taxation
Internet_taxation.ppt
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12. Jurisdiction The legitimate scope of government power
Whose laws apply?
State and federal laws limit a court’s jurisdiction over a defendant from another state
International jurisdiction is especially complex and controversial
In an international dispute over e-commerce, whose laws apply?
Violations of Intellectual Property
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13. International Issues
What right does any one country have to determine the materials that should be available on the Internet?
Can a country regulate an entity in cyberspace, but not on the soil of that country?
World Intellectual Property Organization (WIPO) succeeded in two treaties to adapt copyright rules for e-commerce
EU’s Electronic Commerce Directive gave online business firms assurance, in 2000, that the firms would have to comply with laws only where the firms are based, not in any other country in the union
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14. International Issues (Cont’d)
Digital Millennium Copyright Act of 1998
EU’s Rome II Directive hopes to allow consumers to sue e-businesses in their home country
Hague Convention drafted a treaty in 1992 designed to set global standards for defamation, copyright, and libel on the Internet
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15. Management Implications
Legal rules that define the Internet are yet to be clarified
Long-range effect of Internet patents, especially those held by e-companies like Amazon.com that cover fundamental online business practices
Ultimate goal in doing business on the Internet is to promote standards that everyone can accept or adopt
Management must focus on legal and consumer protection issues surrounding B2C e-commerce
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16. Chapter Summary
Legal and ethical implications of the Internet are attracting attention in industries and governments around the world
Question of ethics in e-commerce is the current challenge confronting U.S. organizations
Several threats to ethics
Privacy is a basic American value
Many of the legal questions that arise in e- commerce are not settled due to lack of specific laws or legal guidelines
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17. Chapter Summary (Cont’d)
Internet copyright and trademark violations fall under intellectual property laws
The question of whether a Web site is a product or a service elicits varied opinions
On the Internet, tax collection is not easy
The ultimate goal of doing business on the Internet is to promote ethics through standards that everyone can accept or adopt
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18. Going Online

19. The focus of this chapter is on several learning objectives
How to build a business on the Internet - from beginning to end
What it takes to plan effectively
The hardware, software, security, and setup considerations in e-commerce infrastructure
The critical elements in the design of an e- business
How to market e-presence
How to manage customer feedback
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20. Building an Internet Business - The Life Cycle
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21. Business Planning and Strategizing (1)
What is the best way to launch the business on the Internet?
How much of the company’s business should be on the Internet?
Requirements
Top management support
A champion in top management to sponsor the push to the Internet
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22. Business Planning and Strategizing (Cont’d)
When should the business go on the Web?
Strategize the following areas:
Vision
Resources
Culture
What is the key product or service at stake?
What is the main goal of going online?
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23. Traditional Business versus E-business
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24. Developing the Online Strategic Plan
The most critical part of going online is the plan - the blueprint
An online plan is a tool with communication, management, and planning in mind
The plan helps you track, monitor, and evaluate your progress
The plan guides you through various phases of the business
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25. Strategic Planning Questions to Consider
How familiar are you with the Internet?
Who will buy the product?
Are you planning to be a short-term presence or a long-term presence?
Who are your competitors?
How good will your products look (online)?
How will you present your products offers?
How will you manage and process transactions?
How will the product be shipped?
How will you handle unexpected change?
How will you handle CRM?
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26. Capacity Planning
Determining in advance the capacity of the bandwidth (pipeline) that will accommodate the traffic to and from the Web site
Planning for scalability
The objective is to ensure that your customers do not go somewhere else
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27. Going Global
Strategic planning means considering the politics of going global
A global strategy means setting up foreign distribution with IT talent abroad
Think like a local
Make sure your Web content is not misinterpreted
Can your IT infrastructure handle your international traffic?
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28. Deciding on Type of Web Site
Clearly defined goals keep your priorities in perspective
Some main goals for Web sites are:
Marketing
Online sales and service
Information delivery
Customer support
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29. Types of E-Commerce Strategies
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30. Technology Infrastructure (2)
What hardware will you need??
What Software will you need?
Find an ISP.
How will you deal with security?
How will you staff your company?
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31. Software Issues eCommerce on the Internet requires basic software
File transfer protocol (FTP)
Remote Console
VNC
Search capabilities
NetNews -- RSS feeds
Broadband connection (DSL, Cable, or Wireless)
A browser
IE, FireFox, Opera, Safari
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32. © 2007 Prentice-Hall, Inc

33. Security
Security is the critical backdrop that must be in place for every step to work
Security is the protection of data, software, or hardware against accidental or intentional damage from a defined threat
Three types of security risk:
Document security entails the integrity of the Web site and its information
Customer privacy has to do with embedding devices in the visitor’s hard disk to track site usage
System security deals with the way the network, the Web server, and the e-commerce infrastructure prevent unauthorized access and tampering with e-commerce traffic
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34. Security Rules Control access to the Web server
Update server software and encode security measures to ensure server - Web site integrity
Use firewalls to protect the merchant’s internal network
Monitor the traffic and detect irregularities in time to minimize damage
Ensure a hot standby for every piece of hardware and software
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35. Design Phase (3) Design, build and host the web site
What makes a good web site?
Will you outsource?
What services will you offer?
What components will you need for your website??
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36. Attributes of the Web Storefront
Customers should be able to find the product quickly
The site should have mechanisms to process the order and send it to the fulfillment center for quick and secure packing and shipping
The site should have mechanisms to generate a summary of the order and produce a printable receipt
The site should have mechanisms to send a confirming to customers
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37. Software Program Cluster Components
Database server
Catalog builder
Shopping cart
Order-processing system
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38. Doing It Yourself? or Outsourcing?
Should the IT department of the business design the Web site?
< or >
Should the Web site design be assigned to an outside Web designer?
Control versus Speed & Expertise
How much $ do you have?
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39. Web Site Design Issues User control and freedom
Consistency and standards
Recognition rather than recall
Efficient design
Recovery from error
Help desk
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40. The Marketing Phase (4) Providing good site service Advertising
Know your customer
Making the sale
Stock control
Collecting the cash
Delivering the goods and following up
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41. The Marketing Phase
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42. The Fulfillment Phase (5)
Fulfillment is what happens after a sale is made
Packing up the merchandise
Shipping the merchandise
Answering questions about the order
Sending out the bill or verifying e-payment
Following up to see if the customer is satisfied
Fulfillment is honoring a commitment to deliver goods or services after payment has been assured
To the customer order fulfillment is the most important business activity of all
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43. Fulfillment Issues Product availability
Matching the products for sale to the products in the inventory
Out-of-stock notice
Back orders
Processing orders
Controls
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44. The Maintenance and Enhancement Phase (6)
Maintenance means keeping a system or business on course, based on the initial design or plan
The goal of maintenance is to ensure the usability of the Web site
Enhancement means implementing upgrades or changes that are designed to improve the system’s productivity
The goal of enhancement is to upgrade the Web site and the business-to-consumer connection to meet the latest standards and customer expectations
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45. Important Tips for Managing Customer Feedback
Set up a list of frequently asked questions and post the list in a prominent location on the homepage
Make sure the information can be accessed easily and quickly
Make sure any page downloads within eight seconds and test it on slow, older computers
Avoid unnecessarily large images or bandwidth-hogging elements
Answer
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46. Important Items for Managing Customer Service
Updating orders
Order status
Technical support
Localization
Handling customer expectations
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47. SWOT initiative framework guidlines.pdf
An analytic method used to determine competitive advantage
Strengths
Weakness
Opportunities
Threats
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48. STRENGHTS (internal) Define areas where you excel
What will your initiative do better than others?
What are your core competencies (things you are good at)?
Do you have a clear strategic direction?
What resources do you have that competitors may not have?
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49. WEAKNESSES (internal)
Evaluate your liabilities
Where are you weak in relation to your competitors?
What skills and resources are you lacking?
What needs to be improved in your initiative?
Why were not able to improve the weaknesses you discovered?
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50. OPPORTUNITIES (external)
Analyze your customers and market potential
Identify favorable market conditions
Identify emerging technologies in support of your initiative
Identify changes in legislation and public policy that will have a supporting effect on your initiative
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51. THREATS (external) Analyze potential challenges
What are your obstacles?
What are your competitors doing?
Identify changes in legislation and public policy that will have an adverse effect on your initiative.
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52. SWOT Analysis
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53. Chapter Summary
Launching a business on the Internet involves a life cycle
Strategizing means evaluating a company’s position and the competition, setting a course for the years ahead, and determining how to get it done
Specific goals need to be considered when planning e-business
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54. Chapter Summary (Cont’d)
The hardware, software, security, and set-up phase focuses on:
Hardware to buy
Software to buy
Where to buy
Four essentials of launching a business on the Internet are
Security
Shopping carts
Payments
Marketing
Behind every Web site are programs stored on a Web server
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55. Chapter Summary (Cont’d)
In Web design, the focus is on
user control and freedom
Consistency and standards
Recognition
Aesthetic design
Recovery from error
Help desk to handle customer queries and complaints
Marketing phase includes:
Advertising
Knowing the customer
Making the sale
Getting the goods
Follow-up procedures after the sale
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56. Chapter Summary (Cont’d)
Fulfillment phase typically includes:
Packing up the merchandise
Shipping the goods
Answering questions about the order
Sending out the bill or a copy of the bill
Maintenance and Enhancement Phase addresses the need to keep the Web storefront up to date and to make any changes that will enhance the use and effectiveness of the Web site
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