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E-Business Models

E-Business Models. Take Aways. Understand e-Business models & challenges Understand issues associated with information system security Understand mixed referencing using Excel Understand how to run Web queries in Excel

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E-Business Models

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  1. E-Business Models

  2. Take Aways • Understand e-Business models & challenges • Understand issues associated with information system security • Understand mixed referencing using Excel • Understand how to run Web queries in Excel • Understand when and how to use basic functions in Excel including PMT, FV, IPMT, PPMT, Logical, and Vlookup • Where was the yo-yo invented? • Philippines. The yo-yo was first used by hunters as weapons. They were wooden disks on strings. In the 1920s, a man from the U.S. named Donald Duncan made the yo-yo into a toy after he visited the Philippines.

  3. Introduction • Pure play – an Internet retailer that has no physical store, such as Expedia.com and Amazon.com • E-business– conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners • E-business model – an approach to conducting electronic business through which a company can become a profitable business on the Internet

  4. E-BUSINESS MODELS • Business-to-business (B2B) • Business-to-consumer (B2C) • Consumer-to-business (C2B) • Consumer-to-consumer (C2C)

  5. BUSINESS-TO-BUSINESS (B2B) MODELS Systematic sourcing– involves buying through prenegotiated contracts with qualified suppliers Spot sourcing– businesses buy transaction-oriented commodity-like products and rarely involves a long-term or ongoing relationship between buyers and sellers

  6. BUSINESS-TO-BUSINESS (B2B) MODELS Marketplace classifications • MRO hubs • Yield managers • Catalog hubs • Exchanges

  7. Buyer Model (Few Buyers, Many Sellers) Reverse auction – the winning bid is the lowest, rather than the highest English auction – the highest bid offer wins

  8. INTERMEDIARIES Intermediaries – agents, software, or businesses that bring buyers and sellers together that provide a trading infrastructure to enhance e-business Reintermediation – using the Internet to reassemble buyers, sellers, and other partners in a traditional supply chain in new ways

  9. INTERMEDIARIES Types of Intermediaries

  10. E-MARKETPLACE BENEFITS AND REVENUE MODELS Advantages and limitations of various e-marketplace revenue models

  11. Future Trends: E-Channels, E-Portals, and E-Government Extended E-Business Models

  12. Web Site Metrics Clickstream data tracks the exact pattern of a consumer’s navigation through a Web site Clickstream data can reveal: • Number of pageviews • Pattern of Web sites visited • Length of stay on a Web site • Date and time visited • Number of customers with shopping carts • Number of abandoned shopping carts

  13. PROTECTING INTELLECTUAL ASSETS Organizational information is intellectual capital - it must be protected Information security – the protection of information from accidental or intentional misuse by persons inside or outside an organization E-business automatically creates tremendous information security risks for organizations

  14. THE FIRST LINE OF DEFENSE - PEOPLE • Organizations must enable employees, customers, and partners to access information electronically • The biggest issue surrounding information security is not a technical issue, but a people issue • 33% of security incidents originate within the organization • Insiders – legitimate users who purposely or accidentally misuse their access to the environment and cause some kind of business-affecting incident

  15. THE SECOND LINE OF DEFENSE-TECHNOLOGY There are three primary information technology security areas • Authentication and authorization • Prevention and resistance • Detection and response

  16. Authentication and Authorization Authentication – a method for confirming users’ identities Authorization – the process of giving someone permission to do or have something The most secure type of authentication involves: • Something the user knows such as a user ID and password • Something the user has such as a smart card or token • Something that is part of the user such as a fingerprint or voice signature

  17. Something That Is Part Of The User Such As a Fingerprint or Voice Signature This is by far the best and most effective way to manage authentication • Biometrics – the identification of a user based on a physical characteristic, such as a fingerprint, iris, face, voice, or handwriting Unfortunately, this method can be costly and intrusive

  18. Prevention and Resistance Downtime can cost an organization anywhere from $100 to $1 million per hour Technologies available to help prevent and build resistance to attacks include: • Content filtering • Encryption • Firewalls

  19. Content Filtering Organizations can use content filtering technologies to filter e-mail and prevent e-mails containing sensitive information from transmitting and stop spam and viruses from spreading. • Content filtering – occurs when organizations use software that filters content to prevent the transmission of unauthorized information • Spam – a form of unsolicited e-mail • Corporate losses caused by Spam

  20. Encryption - scrambles the contents of a file so that you can’t read it without having the right decryption key.

  21. Firewalls Sample firewall architecture connecting systems located in Chicago, New York, and Boston

  22. Detection and Response If prevention and resistance strategies fail and there is a security breach, an organization can use detection and response technologies to mitigate the damage Antivirus software is the most common type of detection and response technology

  23. Detection and Response Hacker - people very knowledgeable about computers who use their knowledge to invade other people’s computers • White-hat hacker (Steve Wozniak: Co-founder of Apple) • Black-hat hacker (Jonathan James: At 16 broke into Pentagon Computers – stole the International Space Station’s source code)

  24. Detection and Response • Script kiddies or script bunnies (Michael Calce: DOS to Yahoo, eBay, CNN, etc.) • Cracker (Kevin Poulson: hacked Into FBI) • Cyberterrorist (Younis Tsouli: plotted terrorist attack using Internet Sites)

  25. What is a Bot? Software bot- malicious code that turns PCs and servers into remotely controlled “zombies” Bot “bitten” organizations- Department of Defense, Argonne National Library, Alabama Supercomputer Network, Arkansas Department of Information Systems, Iowa Communications Network, Connecticut’s Department of IT

  26. Detection and Response Virus-software written with malicious intent to cause annoyance or damage BOTS: • Worm(A computer worm is a self-replicating computer program. It uses a network to send copies of itself to other nodes (computers on the network) and it may do so without any user intervention) • Denial-of-service attack (DoS) • Distributed denial-of-service attack (DDoS) • Trojan-horse virus (A term used to describe malware that appears to the user to perform a desirable function but, in fact, facilitates unauthorized access to the user's computer system) • Backdoor program (method of bypassing normal authentication, securing remote access to a computer, obtaining access to plaintext, and so on, while attempting to remain undetected)

  27. What does a Bot do? Bots can remain dormant for weeks or months at a time 60% of bots are used to send spam The other 40% for more destructive reasons: including phishing, pharming, click fraud, distributing adware or malware, denial-of-service attacks, data theft, and temporarily storing illegal malicious, or stolen files

  28. How do you get a Bot? Most bots are installed due to Human Error. • Through Operating system or application vulnerabilities from not updating security. • Dictionary attacks that guess passwords • Files downloaded via Email • Instant Messaging • Peer-to-Peer applications for downloading • Pre-existing back doors created by viruses • Exploit code aimed at specific networks like: • PC’s • Cell Phones • Ipods • Once bots are installed they can update themselves or install other malicious software.

  29. Thinking of Making Money Using Bots? Think Again Jeanson James Ancheta Downey, California 20 years old Made a worm that let him turn computers into bots for profit ($60,00) Bot infected China Lake Naval Air Weapons Station in California Now faces 25 years in prison and a $1 Million dollar fine Do the math: $1,000,000 > $60,000

  30. People Who Didn’t Do the Math? Anthony Scott Clark (21 years old from Beaverton, Oregon): Attacked eBay (DOS) - 10 Years in Prison and $250,00 in fines Saad Echouafni (head of a satellite communications company): Disrupted Homeland Security • Fugitive since 2004 and on FBI’s Most Wanted Jefferey Lee Parson (18 years old): Infected 48,000 home PC’s • 14 – 18 month sentence

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