ECMM 6010, Fall 2005 Intro 1 Technology issues in Electronic Commerce 1.Basic Networking: How does the internet work 2.Web programming: JavaScript, PHP, SQL, XML 3.Cryptography 4.Other topics

ECMM 6010, Fall 2005 Intro 2 What is e-Commerce? Many definitions … Wide view: Electronically based (commercial) activities Narrow view: Use of the internet to enable business transactions For example: ‘The use of the Internet and the web to transact business. More formally, digitally enabled commercial transactions between and among organizations and individuals.’ K. Laudon and C. Traves, E-commerce, Addison Wesley 2001 E-commerce and e-business Internet terminology is still in a state of flux; nowhere is this more evident than in the past use of the terms e-commerce and e-business. Both have been used to describe any business activity which uses the Internet. However, some consensus is emerging in that the terms are gradually being employed in a more focused way. The term e-commerce is increasingly being used to describe online retailing, for example the use of the Web to sell books. The term e-business is increasingly being used to describe all business activities using the Internet, not just online retailing. D. Ince, Developing Distributed and E-commerce Applications, Addison Wesley 2002

ECMM 6010, Fall 2005 Intro 3 E-Economy Richard Simpson, Director, Electronic Commerce Branch, Industry Canada “It’s not just about how the ICT sector has grown, it’s about how ICTs have stimulated productivity, trade and investment in all sectors. “ The following slides are an excerpt from Simpson’s EMEC Seminar 2005

ECMM 6010, Fall 2005 Intro 4 Total Change: Contributions to aggregate labour productivity growth Acceleration to Contributions to value added per person engaged, in percentage points Japan AustraliaCanada US MexicoIreland Germany UK ICT-producing (manufacturing + services) ICT-using (services)Other activities Source: The Economic Impact of ICT. OECD, 2004.

ECMM 6010, Fall 2005 Intro 5 Source: OECD, Information Technology Outlook 2004 Businesses with Internet Access and Web Site, 2003 (as a percentage of all firms)

ECMM 6010, Fall 2005 Intro 6 Broadband use continues to grow Broadband penetration per 100 inhabitants, top 10 countries Source: Statistics Denmark, 2005 Per 100 inhabitants

ECMM 6010, Fall 2005 Intro 7 Canadians are moving quickly to high-speed Source: Statistics Canada’s Household Internet Use Survey, 2004 Internet Use and Speed by Households

ECMM 6010, Fall 2005 Intro 8 E-Commerce Exceeding Expectations $- $1,000.0 $2,000.0 $3,000.0 $4,000.0 $5,000.0 Worldwide E- Commerce (U.S. $Billions) Estimates 2002 Estimates Note: Charts reflect "Internet Commerce", a subset of electronic commerce that includes the purchase or trade of goods and services via the Internet / World Wide Web, but excludes financial services' transactions Source: International Data Corporation, 1999 and 2002

ECMM 6010, Fall 2005 Intro 9 E-Commerce Growth in Canada: A Near 400% Increase since 2000 $B (Canadian) Source: Statistics Canada, Survey of Electronic Commerce and Technology, April 2005 Value of Online Sales

ECMM 6010, Fall 2005 Intro net income: $250 million 2003 net income: $442 million 2004 net income: $778 million 22 local language sites 2004 net income: $519 million 2003 net income: $238 million 2002 net income: $42 million Hosts more than 20,000 small businesses 2004 net sales: $6.92 billion 2003 net sales: $5.26 billion 2002 net sales: $3.93 billion 2001 net sales: $3.12 billion 2000 net sales: $2.76 billion …to capture new markets Jan.- July 2004 revenues: $1.35 billion Jan. - July 2003 revenues: $559.8 million Jan. - July 2004 net income: $143 million Jan. - July 2003 net income: $58 million Dot-com Stars are Still Around

ECMM 6010, Fall 2005 Intro 11 “The Web players new assault should keep the productivity gains coming.” Business Week, May “E-commerce will continue to change every kind of business, offline as well as online…” The Economist, May E-Business has Entered the Economic Mainstream

ECMM 6010, Fall 2005 Intro 12 In 2004, 1 in every 16 s carried a virus CanCERT™ is Canada’s first national Computer Emergency Response Team (CERT) operated 24/7 by EWA-Canada since The above graph depicts the number of attacks per month against CanCERT™ networks during the period August 2001 to March Attacks Against CanCERT™ Networks August March 2005 Blaster/Nachi Code Red I/II / Nimda Slammer Windows Pop-up Spam Agobot/Gaobot/Phatbot Aug 01 Oct 01 Dec 01 Feb 02 Apr 02 Jun 02 Aug 02 Oct 02 Dec 02 Feb 03 Apr 03 Jun 03 Aug 03 Oct 03 Dec 03 Feb 04 Apr 04 Jun 04 Aug 04 Oct 04 Dec 04 Feb 05 Number Internet Threats: Incidents are increasing Source: MessageLabs, December 6, 2004

ECMM 6010, Fall 2005 Intro 13 Source: Ekos, May 2005 Business Consumers Source: Ekos, January 2005 Ongoing concerns about privacy and security % of businesses identifying barrier as “significant” to adoption of e-business * Not willing to give my credit card information over the Internet to purchase from a well-known store ** I mind companies using information about me even if I know about it and can stop it.

ECMM 6010, Fall 2005 Intro 14 Spam, The Internet "KILLER" Source: Messagelabs, 2005

ECMM 6010, Fall 2005 Intro 15 Estimates of the annual cost of spam to the U.S. economy –$10 billion (Ferris Research) –$87 billion (Nucleus Research) Radicati Group and Message Labs estimate worldwide cost to businesses at $20.5 billion Loss of public confidence in Internet communications 25% of Internet users have curtailed their use of because of spam (Pew Foundation-2003) The costs of spam End: Simpson slides

ECMM 6010, Fall 2005 Intro 16 Technology Business Law & Policy eCommerce

ECMM 6010, Fall 2005 Intro 17 E-Commerce & Technology Technology should not be at the center of your business case. However, you need a good understanding of technology to enable your business

ECMM 6010, Fall 2005 Intro 18 E-Commerce I ( ) Explosive growth, dot.com collapse E-Commerce II ( ) Reassessment of e-commerce companies