Slide 3-1 Chapter 3 Electronic Commerce and Internet Technologies Introduction to Information Systems Judith C. Simon

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Slide 3-3 Chapter 3 Major Topics ä Electronic data interchange ä Introduction to the Internet ä Business examples of Internet electronic commerce ä Security issues of Internet electronic commerce ä Expected growth of Internet electronic commerce ä Additional Internet technologies

Slide 3-4 Electronic Commerce (E-Commerce) Overview ä Also called e-business ä Refers to commercial transactions in electronic form

Slide 3-5 Communications Software ä Manages transmission of data between computers (provides appropriate instructions to hardware) ä Used to transfer files and to send messages (electronic mail) ä Available with some operating systems, as well as with some related hardware such as a modem, or as a separate purchase

Slide 3-6 Electronic Data Interchange (EDI) ä Has been in use for several decades (longer than business uses of the Internet have existed) ä Purpose/use is to send data over communication lines as secure, direct links between organizations

Slide 3-7 Internet Introduction ä Internet: international network of networks ä Overall cost of communication is considered low, but some parts of the world lack the needed technology ä TCP/IP: set of protocols (rules) used for Internet transmissions ä Security of messages and data continues to be a concern

Slide 3-8 Internet Access ä ISP: Internet Service Provider, such as AOL ä Domain: Type of organization providing access, such as.com (commercial) or.edu (educational) ä address pattern: ä example: ä example:

Slide 3-9 World Wide Web (WWW or “Web”) ä Designed in 1989 to help researchers to collaborate over the Internet ä Hypertext: links that can take the user directly to other data stored locally or externally ä Hypermedia: use of nontext media, such as images, sound, animation

Slide 3-10 World Wide Web, continued ä HTML: Hypertext markup language, the basic code used developing for Web pages ä HTTP: Hypertext transfer protocol, rules for distributing or transmitting hypertext files (Web pages) ä Browser: software (e.g., Netscape, Internet Explorer) used to retrieve HTML documents and display them on a computer screen; has capability of interpreting code and handling hyperlinks

Slide 3-11 Management Concerns - World Wide Web ä Is developing and maintaining a home page worth the time and expense involved to the organization? ä Can business transactions be processed safely? ä Is employee access to the Web worth the expense? If so, which employees need access? Should access be restricted or monitored?

Slide 3-12 Security Issues of E-Commerce ä Digital certificates: used for identification and for exchanging with another party for security of transactions ä Both public and private certificates are available. Public may be used for identification as a customer purchasing products online. Private is often used when access is limited to specified persons, who can be provided with the private certificates. A combination of both types may be used for additional security.

Slide 3-13 Electronic Mail ( ) ä sending and receiving messages by computer system; very widely used in businesses and homes ä Electronic eavesdropping: reading and perhaps storing (without permission) messages sent to someone else ä Emoticon (emotional icon): used to indicate intended feelings, e.g., :-) = smile to indicate intended humor

Slide 3-14 Electronic Mail ä An advantage: ä Messages can be sent and responses received very quickly. ä A disadvantage: ä Confidentiality is not ensured: for example, a message intended to be private could be forwarded to 1000 additional persons.

Slide 3-15 Electronic Mail Emoticons ä How would you interpret these emoticons if seen in a message you received? ä ä :’-(*:O) ä C=:-):-I ä :-\‘:-)

Slide 3-16 Electronic Mail Emoticons ä Typical intended meanings of certain emoticons: ä :-K beats screaming ä :’-(crying*:O) clowning ä C=:-)cooking:-I Hmmm ä :-\skeptical‘:-)devilish

Slide 3-17 Management Concerns - Electronic Mail ä Are employees using capabilities only for intended purposes? ä Have procedures been provided identifying specific usage policies? ä Should employee messages be monitored?

Slide 3-18 Telecommuting ä Telecommuting: employee working at home and transferring data to and from office ä Teleworking: form of telecommuting referring to working away from the office but not necessarily to home (“telecommuting” is sometimes used to refer to this option, too) ä Virtual office: seeming to be conducting business from an office, without needing to be in any one location

Slide 3-19 Telecommuting, continued ä Advantages include reduction in travel time and travel cost, pollution, ability to work any time of day or night, reduction in needed office space ä Disadvantages include problems with supervision of employees, lack of social interaction, inappropriateness for some types of jobs

Slide 3-20 File Transfer Protocol (FTP) ä FTP: rules used to transfer files from one location to another ä Software is available for this use, such as WS_FTP. ä Browsers can also be used to access files. Instead of using preceding a desired Web address, FTP:// is used to indicate the rules to use preceding the name and location of the desired file

Slide 3-21 Newsgroups ä Newsgroups: discussion areas available on a continually expanding, wide range of topics. People who access a newsgroup can simply read information provided by others or can add (“post”) their own information to the newsgroup. ä Newsgroups have several main categories of topics, as well as subcategories separated by dots, e.g., misc.jobs.offered ä FAQs: frequently asked questions; these should be read before contributing to a newsgroup

Slide 3-22 Mailing Lists ä Also called “LISTSERVs” ä Use for discussions; messages go to everyone who has subscribed. May be moderated or unmoderated. If unmoderated, no one screens messages before they are transmitted to list. ä Spamming: using mailing lists to send undesired materials such as advertisements to those on mailing list

Slide 3-23 Intranets ä Intranet: use of Internet technology for communication within an organization. Web pages are used to provide internal data. Usually quicker and less expensive to change/update than printed materials. ä Firewall: form of security to prevent outsiders from accessing internal data or to restrict internal users to particular sections

Slide 3-24 Extranets ä Extranet: use of Internet technology for communication between organizations, where the outside organization has access to designated parts of the intranet, e.g., for monitoring inventory and the need for materials/supplies

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