Furthermore, people think nothing of handing over their card to a restaurant server, who could easily find time to write down the card’s details. Digital commerce growth is on the rise and is fast becoming an indispensable part of modern lives. C) On-demand service firms are fueling the growth of local e-commerce. Shopify. The main advantages of EDI are: Despite these advantages, for most companies EDI is still the exception, not the rule. Shopping cart software 2. There is still a need to consider addressability (i.e., a URL) and have a common language across the network (i.e., HTTP and HTML). Social media, mobile, and cloud technology are enhancing entrepreneurs' ability to get businesses off the ground faster. Watson, R. T., P. G. McKeown, and M. Garfield. First, the intent of the Internet is to give people remote access to information. However, these are built upon the previous layer, in the case of a URL, or at a higher level, in the case of HTML. They have to abandon existing business practices to create new ways of interacting with stakeholders. More elaborate screening rules can be implemented to decrease the ability of unauthorized people to access an intranet. Alternatively, a firm that wants to share sensitive data with selected customers may install a more complex firewall to offer a high degree of protection. In cases where the content of the message is not confidential, the receiver may still wish to verify the sender’s identity. Electronic commerce: building blocks for new business opportunity. There is always some chance that people will circumvent authentication controls and gain unauthorized access. Security is an eternal concern for organizations as they face the dual problem of protecting stored data and transported messages. Encryption is the process of transforming messages or data to protect their meaning. According to recent estimates by eMarketer, worldwide retail sales are expected to reach $4 trillion by 2020. Delivery (using drones to deliver shipments). The receiver’s private key, the only one that can decrypt the message, must be kept secret to permit secure message exchange. Content is the key in order to get high rankings and therefore, it must … This involves the transaction of goods and services, the transfer of funds and the exchange of data. The differences between HTML and PDF are summarized in Exhibit 7. Thus, as part of the subscription sign-up, subscribers have to supply their public key, and when using the service, sign all electronic messages with their private key. For example, consumers can establish monthly checking account deductions for utility bills, and banks can transfer millions of dollars. Cookies are a useful way of collecting data to provide visitors with better service. Secure Sockets Layer (SSL) was created by Netscape for managing the security of message transmissions in a network. The TCP part of TCP/IP is responsible for splitting a message from the sending computer into packets, uniquely numbering each packet, transmitting the packets, and putting them together in the correct sequence at the receiving computer. In effect, an electronic wallet stores a digital representation of a person’s credit card and enables electronic transactions. However, these networks are too expensive for all but the largest 100,000 of the 6 million businesses in existence today in the United States. The Internet Network Information Center (InterNIC) manages the assignment of unique IP addresses so that TCP/IP networks anywhere in the world can communicate with each other. An organization can have multiple extranets to link it with many other organizations, but each extranet is specialized to support partnership coordination. This lack of privacy can have serious consequences.7 Cash gives anonymity. Shopify is a very popular SEO compliant and constantly evolving web technology for an e … This layer consists of software for sending and receiving messages. A structured, standardized data format is used to exchange common business documents (e.g., invoices and shipping orders) between trading partners. Exhibit 13.: Encryption with a public-key system. The choice between HTML and PDF depends on the main purpose of the document. Producing a PDF document is very similar to printing, except the image is sent to a file instead of a printer. In fact, technology plays an important role throughout the e-commerce value chain, in areas such as recruitment, marketing, and advertising, among many others. Contact us at info@netscribes.com. Also, how do you know that the key’s receiver will protect its secrecy? All electronic money systems are potentially divisible. "We used to be a pizza company that sells online and we needed to become an e-commerce company that sells pizza," Dennis Maloney, Domino's chief … Circuit switching is commonly used for voice and package switching for data. Cookies have several uses. This is further expected to give a boost to cashless payment modes and, in turn, lead to inflating e-commerce sales. After encryption, the message is totally secure (see Exhibit 15). The sender encrypts a message with the intended receiver’s public key, and upon receiving the message, the receiver applies her private key (see Exhibit 13). Only the receiver, using his private key, can decode the message. One of the most common roadblocks that online retailers haven’t completely overcome yet is... Data Integration. Web server Software. Companies that create personalized customer experiences will be the ones that win in 2018 and beyond. Routing is the process of determining the path a message will take from the sending to the receiving computer. The technology used in e-commerce is Both software and hardware technology must be included in your e-business plan. An IP address is a unique 32-bit number consisting of four groups of decimal numbers in the range 0 to 255 (e.g., 128.192.73.60). Thus, the Internet is well-suited to communicating with a wide variety of stakeholders. This could be achieved in different ways by applying different technologies.Depending on your budget and business needs, you can choose from: 1. The Internet is a global network of networks. e-business is the application of information and communication technologies in support of all the activities of business. Internet in business is used for information exchange, media promotion, electronic mail, mailing lists, dialogue, discussions, consulting with consumers online. Emerging economies, on the other hand, are still based in cash, however, they too are rapidly moving towards digitization. Concerned with content, the Web is a very good example of this layer. PGP is a public domain implementation of public-key encryption. Exhibit 8. The provider might want to verify that any e-mail requests it receives are from subscribers. Other servers can be enabled by using Netscape’s SSLRef program library, which can be downloaded for noncommercial use or licensed for commercial use. Twenty million smart cards are already in use in France, where they were introduced a decade earlier. For e-commerce businesses, AI technology is becoming increasingly important since it holds the potential for dynamic and adaptable targeting, which helps companies get the right pitch, at the right time, to the right customer, on the right platform. According to Gartner, 50% of consumers in mature markets will use smartphones or wearable-tech for making mobile payments by 2018. Consumers buy cards of standard denominations (e.g., USD 50 or USD 100) from a card dispenser or bank. This means that, rather than just relying on inviting or reminding customers to repeat their purchases, Amazon is experimenting with a process that can predict a customer’s shopping list and deliver the products to their nearest fulfillment center – even before the order is placed. Austin, R. D., and M. Cotteleer. Reading, MA: Addison-Wesley. EDI, with its roots in the 1960s, is a system for exchanging text, and the opportunity to use the multimedia capabilities of the Web is missed if a pure replacement strategy is applied. Anticipatory shipping definitely has the power to save the customer a lot of valuable time and effort as they are set free from mundane tasks such as shopping for household essentials and having to travel to markets. The story of Amazon.com is an e-commerce dream. Technology is the backbone of e-commerce. Consumers and organizations need to be assured that their on-line orders are protected, and organizations must be able to transfer securely many millions of dollars. Finally, on top of all the other layers sits an application. Each of these topologies is briefly described, and we discuss how they can be used to support electronic commerce. This chapter will provide you with the wherewithal to understand the technology that enables an organization to make this transformation. PDF has been adopted by a number of organizations, including the Internal Revenue Service for tax forms. Backed by major credit card companies, MasterCard and Visa, SET is designed to offer a high level of security for Web-based financial transactions. It permits organizations to publish a full range of text and multimedia. Journal of Organizational Computing and Electronic Commerce 6 (1):1-10. Brand protection (invisible digital markers to help fight counterfeit products). Anticipatory shipping is the closest e-commerce can come towards clairvoyance. In Telekoopertion in Unternehmen , edited by F. Lehner and S. Dustdar. In the case of the Web, you have to configure your browser to invoke the Adobe Acrobat reader whenever a file with the extension pdf is retrieved. The elegance of the public-key system is that it totally avoids the problem of secure transmission of keys. Here you interact with the seller (Amazon), exchange data in form of pictures, text, address for delivery etc. Warehouse management (robot technology for collaborative automated order picking), Infrastructure (deploying drones to inspect bridges), and. Harvard Business School, 9-198-006. Before EDI, many standard messages between partners were generated by computer, printed, and mailed to the other party, that then manually entered the data into its computer. EFT is essentially electronic checking. However, the Internet will enable these smaller companies to take advantage of EDI. So, do you fax the key or phone it? Exhibit 5.: Electronic commerce infrastructure. Parts of the telephone system still operate as a circuit-switched network. 3. Given such radical innovations in technology, the boundaries between brick-and-mortar retailers and e-retailers are expected to blur even more. The two main methods for transporting data across a network are circuit and packet switching. For example, it could move an HTML file from a Web server to a client running Netscape. An extranet (see Exhibit 7) is designed to link a buyer and supplier to facilitate greater coordination of common activities. Exhibit 19. Credit card numbers are not the only sensitive information transmitted on the Internet. To send and receive messages, communicators first need to create separate pairs of private and public keys and then exchange their public keys. Public keys can be freely exchanged. Standards mean that routine electronic transactions can be concise and precise. iQCVAwUBMeRVVUblZxMqZR69AQFJNQQAwHMSrZhWyiGTieGukbhPGUNF3aB qm7E8g5ySsY6QqUcg2zwUr40w8Q0Lfcc4nmr0NUujiXkqzTNb 3RL41w5x fTCfMp1Fi5Hawo829UQAlmN8L5hzl7XfeON5WxfYcxLGXZcbUWkGio6/d4r 9Ez6s79DDf9EuDlZ4qfQcy1iA==G6jB. In the case of fraud in the U.S., banks already protect consumers, who are typically liable for only the first USD 50. The major advantage of packet switching is that it permits sharing of resources (e.g., a communication link) and makes better use of available bandwidth. At the same time, ecash provides the privacy of cash because the payer can remain anonymous. This so-called intranet (see Exhibit 10) is essentially a fenced-off mini-Internet within an organization. Want to keep track of emerging technology changes in a different industry? The simplest approach is to use the Internet as a means of replacing a VAN by using a commercially available Internet EDI package. PDF is a page description language that captures electronically the layout of the original document. The components of an NII include the TV and radio broadcast industries, cable TV, telephone networks, cellular communication systems, computer networks, and the Internet. You may unsubscribe from our communications at any time. TCP handles the transport of data, and IP performs routing and addressing. Historically, such data have been stored in restricted areas (e.g., a vault) or encoded. Public-key cryptography ensures message confidentiality between parties in a financial transaction. Digital supply chain. We respect your right to data privacy and security. Applegate, L. M., C. W. Holsapple, R. Kalakota, F. J. Rademacher, and A. Their wide-scale adoption could provide substantial benefits. E-Business is the term used to describe the information systems and applications … 997E018. The application on the cardholder’s side is also called the digital wallet . Secure transmission of information is necessary for electronic commerce to thrive. EDI, which has been used for some 20 years, describes the electronic exchange of standard business documents between firms. AI-driven personalization will not only lead to the conversion of one-time transactions but also drive personal and trust-based relationships between consumers and e-tailers, that effectively improve customer lifetime value. There are three types of communication networks used for electronic commerce (see Exhibit 8), depending on whether the intent is to support cooperation with a range of stakeholders, cooperation among employees, or cooperation with a business partner. Here are the five emerging technologies that will impact e-commerce the most. A banking system has one or more common clearinghouses that facilitate the flow of funds between accounts in different banks. Internet communication costs are typically less than with traditional EDI. While desktop still beats mobile devices as the primary method consumers use to make eCommerce purchases, that won’t last long. Web strategy: Attracting and retaining visitors, 4. The creator of a Web site often wants to remember facts about you and your visit. Port management (autonomous freight shuttle debuts). E-commerce originated in a standard for the exchange of business documents, such as orders or invoices, between suppliers and their business customers. SET is based on cryptography and digital certificates. A system may often use multiple authentication methods to control data access, particularly because hackers are often persistent and ingenious in their efforts to gain unauthorized access. A Domain Name Server (DNS) converts aussie.mgmt.uga.edu to the IP address 128.192.73.60. This trend is leading to the launch of new e-commerce apps, as e-tailers are encouraging their customers to shop via mobile-based apps. A proposed revision, due in 1999, will extend SET to support business-to-business transactions, such as inventory payments. It can’t be sent with the message because if the message is intercepted, the key can be used to decipher it. Here are some Oracle Commerce facts: Most companies that use Oracle Commerce are in the retail, computer software, and information technology niche. Societies have always needed secure methods of transmitting highly sensitive information and confirming the identity of the sender. Digicash of Amsterdam has developed an electronic payment system called ecash that can be used to withdraw and deposit electronic cash over the Internet. For instance, using the preference features of your browser, you can indicate the font and size for presenting information. Each link of a predetermined bandwidth is dedicated to a predetermined number of users for a period of time. As a result, many businesses have not been able to participate in the benefits associated with EDI. Thus, the business services layer supports secure transmission of credit card numbers by providing encryption and electronic funds transfer. eCommerce global trends indicate that mobile devices will become the central piece of technology used to discover, research, and purchase goods and services. There are several approaches to operating a firewall. And as mobile penetration increases, along with better quality services, this trend is assured to grow. Firms following the same standard can electronically share data. Another screening rule is to restrict access to certain applications (e.g., Web pages). Secure Electronic Transaction (SET) is a financial industry innovation designed to increase consumer and merchant confidence in electronic commerce. IP Address, Protocol and Ports Web server can refer to either the hardware {the computer} or the software (the computer application) that helps to deliver web content that can be accessed through the Internet. Here you can download the free lecture Notes of E Commerce Pdf Notes – EC Notes materials with multiple file links to download. In addition, a public-key encryption system can be used to authenticate messages. To everybody else, it is gobbledygook. AI-powered technologies have great potential in optimizing search through … The problem with special-purpose cards, such as phone and photocopy cards, is that people end up with a purse or wallet full of cards. Payment modes tend to vary across regions, for instance, the U.S. and Canadian markets are dominated by credit card payments, while the European market is more partial towards debit cards and digital funds transfers. The Internet and intranet, as the names imply, are networks. Inventory management (hack-proof RFID chips). Imagine you pay USD 1,000 per year for an investment information service. The system is inherently open, and traditional approaches of restricting access by the use of physical barriers are less viable, though organizations still need to restrict physical access to their servers. When the purported sender’s public key is applied to this message, the identity of the sender can be verified (it was not the President). A firewall is usually located at the point where an intranet connects to the Internet, but it is also feasible to have firewalls within an intranet to further restrict the access of those within the barrier. As the technology changing the transactions between the business and consumer, the consumer is accessing various tools to estimate prices, find alternatives, stores and obtain coupons. Find out what Amazon does, what makes it different from other e-commerce Web sites and how its technology infrastructure supports its multi-pronged approach to online sales. Visa and MasterCard founded SET as a joint venture on February 1, 1996. Paper handling costs are substantially reduced. In the next few years, electronic currency will displace notes and coins for many transactions. In an earlier time, messages were sealed with the sender’s personal signet ring–a simple, but easily forged, method of authentication. A smart card, containing memory and a microprocessor, can store as much as 100 times more data than a magnetic-stripe card. A payment gateway application translates SET messages for the existing payment system to complete the electronic transaction. Adobe’s Acrobat Exchange software permits any document created by a DOS, Macintosh, Windows, or Unix application to be converted to PDF. Two common approaches to electronic publishing are Adobe’s portable document format (PDF) and HTML. While an intranet may not directly facilitate cooperation with external stakeholders, its ultimate goal is to improve an organization’s ability to serve these stakeholders. Any computer connected to the Internet can communicate with any server in the system (see Exhibit 5). The microprocessor can be programmed. The transaction is then electronically transmitted to an intermediary (usually the banking system), which transfers the funds from the buyer’s account to the seller’s account. The advantage of SET is that a consumer’s credit card number cannot be deciphered by the merchant. Visitors who are concerned about the misuse of cookies can reject them totally, with the consequent loss of service. To use ecash, you need a digital bank account and ecash client software. Humans can more easily remember addresses like aussie.mgmt.uga.edu. A sender’s private key is used to create a signed message . People get used to typing the words or phrases into the search bar of search … For example, one of your friends may find it amusing to have some fun at your expense (see Exhibit 16). Bad checks are no longer a problem because the seller’s account balance is verified at the moment of the transaction. It is not as secure as the other alternatives, but most people are likely to carry only small amounts of digital cash and thus security is not so critical. The client part of SSL is part of Netscape’s browser. Researchers predict e-commerce will be 17 percent of U.S. retail sales by 2022, according to Digital Commerce 360. At Campus On Fire, the company I work at, we code on JavaScript, the main reasons why we use Node.js and Angular: 1. Without accurate information about people’s interest, it is very difficult to provide good service. Buyers and sellers must be able to verify that the electronic money they receive is real; consumers must have faith in electronic currency. Two variants of digital cash are presently available: prepaid cards and smart cards. The application is a book catalog; encryption is used to protect a customer’s credit card number; the application is written in HTML; HTTP is the messaging protocol; and the Internet physically transports messages between the book seller and customer. Artificial intelligence. B. Whinston. The successful management of extreme market and spiked-demand has, therefore, become the new focus area, optimizing the supply chain management process for these companies and playing a critical role in ensuring efficient and faster delivery models. Naturally, any messages between the service and the client should be encrypted to ensure that others do not gain from the information. Specifically, startups specializing in warehousing and logistics solutions are gaining traction as they offer great automation opportunities to e-commerce companies. and then you make the pay… Adobe, for example, uses its Web site to distribute software changes to customers and provide financial and other reports to investors. Of late, with the emergence of contactless payment options, such as Apple Pay and Google wallet, security levels have also reached an all-time high. All Rights Reserved. Electronic commerce poses additional security problems. There are also significant benefits to be gained because banks don’t have to hold as much cash on hand, and thus have more money available for investment. Ecash can be used for everyday Internet transactions, such as buying software, receiving money from parents, or paying for a pizza to be delivered. Amazon patented a “method and system for anticipatory shipping” in 2013. A signed message has additional encrypted text containing the sender’s signature (see Exhibit 18). Most word processors can generate HTML, PDF files are created using special software sold by Adobe that is more expensive than many HTML creator alternatives, Fingerprint, voiceprint, signature, hand size. Communication is confined to the computers linking the two organizations. Counting, moving, storing and safeguarding cash is estimated to be 4 percent of the value of all transactions. The multimedia capability of the Internet creates an opportunity for new applications that spawn a qualitatively different type of information exchange within a partnership. Many organizations have realized that Internet technology can also be used to establish an intra-organizational network that enables people within the organization to communicate and cooperate with each other. Consequently, the Internet is displacing VANs as the electronic transport path between trading partners. The economies gained from low-cost Internet software and infrastructure mean many more buyers and supplier pairs can now cooperate electronically. A means to accomplish this has been to use technology that drives a high degree of personalization, such that each customer is treated as an individual target segment, rather than a part of a generalized mass. Engagement with Content. A cookie is the mechanism for remembering details of a single visit or store facts between visits. 1997. Shopify. Forrester also predicts that in-person mobile payments will become a fast-growing segment, while remote mobile payments will constitute over 65% of mobile payments by 2021. Technologies are no doubt creating an impact on e-commerce businesses giving sellers various opportunities and advantages. Electronic Commerce: The Strategic Perspective by Richard T. Watson (University of Georgia, USA) is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted. According to Forrester’s mobile payments forecast 2016-2021, mobile payments in the EU-7 are expected to rise at a CAGR of 19% to reach $148 billion by 2021. If the intention is to inform the reader, then there is generally less concern with how the information is rendered. For example, the India-based AI company – Artificia, uses visual search and discovery tools to link individual images with a user’s interests to recommend products that they are more likely to purchase. In addition, credit card issuers sought the protection of more advanced anti-fraud measures. We still rely on personal signatures for checks and legal contracts, but how do you sign an e-mail message? VANs add communication services to those provided by common carriers (e.g., AT&T in the U.S. and Telstra in Australia). A public key can be freely distributed because it is quite separate from its corresponding private key. Mobile devices have changed the way we live in radical ways, contributing to every aspect of our daily existence, becoming an integral tool for day-to-day living. Because it is a general transport system for electronic information, the Internet can carry a wide range of confidential information (financial reports, sales figures, marketing strategies, technology reports, and so on). The simplest method is to restrict traffic to packets with designated IP addresses (e.g., only permit those messages that come from the University of Georgia–i.e., the address ends with uga.edu). A smart card can serve as personal identification, credit card, ATM card, telephone credit card, critical medical information record and as cash for small transactions. SSL uses public-key encryption to encode the transmission of secure messages (e.g., those containing a credit card number) between a browser and a Web server. Hackers can use computers to intercept network traffic and scan it for confidential information. The certificate authority issues and manages digital certificates, which are proofs of the identities for all parties involved in a SET transaction. Digital cash is an electronic parallel of notes and coins. Often the person using the browser can specify how the information will be presented. 41 East, 11th Street, New York NY10003, USA +1-877-777-6569, 2020 © Netscribes. Technology also enables enhanced search, customization, and personalization, which are fast becoming “must-have” capabilities for e-commerce success. London, Canada: University of Western Ontario. Electronic data interchange (EDI), e-mail, and hypertext text transfer protocol (HTTP) are examples of messaging software. Either B2B or B2C, the role of technology is the base and the existential factor when it comes to E-commerce industry. What’s more, tech features are giving entrepreneurs the ability to … An electronic commerce application. Post-Modernism and the Web: Societal effects. The intruder cannot read the data without knowing the method of encryption and the key. The main differences between an online shop and an ordinary website are the shopping cart and payment gateway features. Richard T. Watson (University of Georgia, USA), Electronic Commerce: The Strategic Perspective, Next: Web strategy: Attracting and retaining visitors, Creative Commons Attribution 4.0 International License, HTML files can be created by a wide variety of software. It is imperative now for the vendors to embrace the existing trends and chose technology and process partner that can help them in maintaining a personalized, intuitive and easy-to-use E-commerce solution. IP numbers are difficult to recall. The rapid growth of electronic commerce is clear evidence of the reliability and robustness of the underlying technology. HTML is a markup language , which means it marks a portion of text as referring to a particular type of information.6 HTML does not specify how this is to be interpreted; this is the function of the browser. A popular form of encryption, readily available to Internet users, goes by the name of Pretty Good Privacy (PGP) and is distributed on the Web. The security system is based on public-key cryptography and passwords. When the card is used to pay for an item, it must be inserted in a reader. The following set of steps illustrates SET in action. As more people embrace digital technologies, companies are betting on innovative technologies to capture more customers and create differentiated experiences online. The Rise of E-commerce Sites For instance, banks (which bear the brunt of the cost of credit card fraud) prefer credit card numbers to be hidden from prying electronic eyes. The various approaches to electronic money vary in their capability to solve these concerns (see Exhibit 19). Such technologies have the potential to take data analytics to the next level and allow companies such as Amazon to expand their customer base manifold while enhancing customer loyalty to a great degree.
2020 technology used in e commerce