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Technology issues in Electronic Commerce Basic Networking: How does the internet work

Technology issues in Electronic Commerce Basic Networking: How does the internet work Web programming: JavaScript, PHP, SQL, XML Cryptography Other topics. What is e-Commerce?. Many definitions … Wide view: Electronically based (commercial) activities

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Technology issues in Electronic Commerce Basic Networking: How does the internet work

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

  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-businessInternet 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

  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

  4. Contributions to aggregate labour productivity growth Acceleration 1990-1995 to 1996-2002 Contributions to value added per person engaged, in percentage points 1.25 0.75 0.25 -0.25 Australia Canada Mexico Ireland US UK -0.75 Japan Germany -1.25 Total Change: 0.04 0.40 0.41 0.62 1.31 1.37 -0.73 -1.12 ICT-producing (manufacturing + services) ICT-using (services) Other activities Source: The Economic Impact of ICT. OECD, 2004. ECMM 6010, Fall 2005

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

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

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

  8. E-Commerce Exceeding Expectations $5,000.0 $4,000.0 Worldwide $3,000.0 1999 Estimates E-Commerce 2002 Estimates (U.S.$Billions) $2,000.0 $1,000.0 $- 1999 2000 2001 2002 2003 2004 2005 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

  9. E-Commerce Growth in Canada: A Near 400% Increase since 2000 Value of Online Sales 2000-2004 $B (Canadian) ECMM 6010, Fall 2005 Source: Statistics Canada, Survey of Electronic Commerce and Technology, April 2005

  10. Dot-com Stars are Still Around 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 2002 net income: $250 million 2003 net income: $442 million 2004 net income: $778 million 22 local language sites 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 2004 net income: $519 million 2003 net income: $238 million 2002 net income: $42 million Hosts more than 20,000 small businesses …to capture new markets ECMM 6010, Fall 2005

  11. E-Business has Entered the Economic Mainstream “E-commerce will continue to change every kind of business, offline as well as online…” The Economist, May 15 2004 “The Web players new assault should keep the productivity gains coming.” Business Week, May 10 2004 ECMM 6010, Fall 2005

  12. 80000 Windows Pop-up Spam Attacks Against CanCERT™ Networks 70000 August 2001 - March 2005 60000 Blaster/Nachi 50000 Agobot/Gaobot/Phatbot Number 40000 30000 Code Red I/II / Nimda Slammer 20000 10000 0 Jun 03 Oct 02 Jun 02 Oct 03 Jun 04 Oct 04 Oct 01 Apr 03 Apr 02 Apr 04 Aug 03 Feb 03 Aug 02 Feb 05 Feb 02 Dec 02 Dec 03 Feb 04 Dec 04 Aug 01 Aug 04 Dec 01 Internet Threats: Incidents are increasing In 2004, 1 in every 16 e-mails carried a virus CanCERT™ is Canada’s first national Computer Emergency Response Team (CERT) operated 24/7 by EWA-Canada since 1998. The above graph depicts the number of attacks per month against CanCERT™ networks during the period August 2001 to March 2005. ECMM 6010, Fall 2005 Source: MessageLabs, December 6, 2004

  13. Ongoing concerns about privacy and security Business Consumers • * 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. % of businesses identifying barrier as “significant” to adoption of e-business Source: Ekos, May 2005 Source: Ekos, January 2005 ECMM 6010, Fall 2005

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

  15. The costs of spam • 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 e-mail because of spam (Pew Foundation-2003) End: Simpson slides ECMM 6010, Fall 2005

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

  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

  18. E-Commerce I (1995-2000) Explosive growth, dot.com collapse E-Commerce II (2001-2005) Reassessment of e-commerce companies ECMM 6010, Fall 2005

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