Electronic commerce

Electronic Commerce, Fourth Edition is a complete introduction to the world of electronic commerce, including balanced coverage of technical and business topics. Case studies and plentiful business examples complement conceptual coverage to provide a real-world context. Implementation strategies are analyzed, using examples of both successful and unsuccessful implementations.

Preface	p. xviii
Introduction
Chapter 1 Introduction to Electronic Commerce	p. 2
Traditional Commerce and Electronic Commerce	p. 4
Traditional Commerce	p. 7
Electronic Commerce	p. 12
International Electronic Commerce	p. 17
Economic Forces and Electronic Commerce	p. 18
Transaction Costs	p. 19
Markets and Hierarchies	p. 20
The Role of Electronic Commerce	p. 21
Network Economic Structures	p. 22
Network Effects	p. 23
Value Chains in Electronic Commerce	p. 24
Strategic Business Unit Value Chains	p. 24
Industry Value Chains	p. 26
SWOT Analysis: Evaluating Business Unit Opportunities	p. 28
The Role of Electronic Commerce	p. 29
Chapter 2 Technology Infrastructure: The Internet and the World Wide Web	p. 37
The Internet and World Wide Web	p. 38
Origins of the Internet	p. 39
New Uses for the Internet	p. 40
Commereial Use of the Internet	p. 40
Growth of the Internet	p. 41
Emergence of the World Wide Web	p. 42
Packet-Switched Networks	p. 45
Routing Packets	p. 46
Internet Protocols	p. 47
TCP/IP	p. 48
IP Addressing	p. 48
Domain Names	p. 50
Web Page Request and Delivery Protocols	p. 51
Electronic Mail Protocols	p. 51
Markup Languages and the Web	p. 53
Standard Generalized Markup Language	p. 54
Hypertext Markup Language (HTML)	p. 55
Extensible Markup Language (XML)	p. 61
HTML and XML Editors	p. 66
Intranets and Extranets	p. 68
Intranets	p. 68
Extranets	p. 68
Public and Private Networks	p. 69
Virtual Private Network (VPN)	p. 69
INTERNET Connection Options	p. 71
Connectivity Overview	p. 71
Voice-Grade Telephone Connections	p. 71
Broadband Connections	p. 71
Leased-Line Connections	p. 74
Wireless Connections	p. 74
Internet2 and the Semantic Web	p. 77
Business Strategies For Electronic Commerce
Chapter 3 Selling on the Web: Revenue Models and Building a Web Presence	p. 88
Revenue Models for Selling on the Web	p. 89
Web Catalog Revenue Models	p. 89
Digital Content Revenue Models	p. 97
Advertising-Supported Revenue Models	p. 99
Advertising-Subscription Mixed Revenue Models	p. 103
Fee-for-Transaction Revenue Models	p. 104
Fee-for-Service Revenue Models	p. 111
Revenue Models in Transition	p. 113
Subscription to Advertising-Supported Model	p. 114
Advertising-Supported to Advertising-Subscription Mixed Model	p. 114
Advertising-Supported to Fee-for-Services Model	p. 114
Advertising-Supported to Subscription Model	p. 115
Multiple Transitions	p. 115
Revenue Strategy Issues	p. 117
Channel Conflict and Cannibalization	p. 117
Strategic Alliances and Channel Distribution Management	p. 118
Creating an Effective Web Presence	p. 121
Identifying Web Presence Goals	p. 121
Achieving Web Presence Goals	p. 122
Web Site Usability	p. 127
How the Web is Different	p. 127
Meeting the Needs of Web Site Visitors	p. 128
Trust and Loyalty	p. 130
Rating Electronic Commerce Web Sites	p. 131
Usability Testing	p. 132
Connecting With Customers	p. 135
The Nature of Communication on the Web	p. 135
Chapter 4 Marketing on the Web	p. 146
Web Marketing Strategies	p. 148
Product-Based Marketing Strategies	p. 149
Customer-Based Marketing Strategies	p. 151
Communicating with Different Market Segments	p. 153
Trust and Media Choice	p. 153
Market Segmentation	p. 154
Market Segmentation on the Web	p. 156
Offering Customers a Choice on the Web	p. 158
Beyond Market Segmentation: Customer Behavior and Relationship Intensity	p. 159
Segmentation Using Customer Behavior	p. 159
Customer Relationship Intensity and Life-Cycle Segmentation	p. 162
Acquisition, Conversion, and Retention of Customers	p. 165
Advertising on the Web	p. 167
Banner Ads	p. 167
Other Web Ad Formats	p. 171
E-mail Marketing	p. 172
Permission Marketing	p. 173
Technology-Enabled Customer Relationship Management	p. 174
CRM as a Source of Value in the Marketspace	p. 175
Creating and Maintaining Brands on the Web	p. 177
Elements of Branding	p. 177
Emotional Branding vs. Rational Branding	p. 178
Brand Leveraging Strategies	p. 179
Brand Consolidation Strategies	p. 179
Costs of Branding	p. 180
Affiliate Marketing Strategies	p. 180
Viral Marketing Strategies	p. 182
Search Engine Positioning and Domain Names	p. 183
Search Engines and Web Directories	p. 183
Web Site Naming Issues	p. 185
Chapter 5 Business-to-Business Strategies: From Electronic Data Interchange to Electronic Commerce	p. 195
Purchasing, Logistics, and Support Activities	p. 197
Purchasing Activities	p. 197
Direct vs. Indirect Materials Purchasing	p. 199
Logistics Activities	p. 200
Support Activities	p. 201
E-Government	p. 203
Network Model of Economic Organization	p. 205
Electronic Data Interchange	p. 206
Early Business Information Interchange Efforts	p. 206
Emergence of Broader EDI Standards	p. 207
How EDI Works	p. 209
Value-Added Networks	p. 213
EDI on the Internet	p. 216
Open Architecture of the Internet	p. 216
Financial EDI	p. 217
Supply Chain Management	p. 219
Value Creation in the Supply Chain	p. 219
Internet Technologies and the Supply Chain	p. 220
Building and Maintaining Trust in the Supply Chain	p. 223
Electronic Marketplaces and Portals	p. 224
Industry Marketplaces	p. 224
Private Stores and Customer Portals	p. 227
Private Company Marketplaces	p. 227
Industry Consortia-Sponsored Marketplaces	p. 228
Chapter 6 Web Auctions, Virtual Communities, and Web Portals	p. 237
Auction Overview	p. 238
Origins of Auctions	p. 239
English Auctions	p. 239
Dutch Auctions	p. 240
First-Price Sealed-Bid Auctions	p. 240
Second-Price Sealed-Bid Auctions	p. 241
Open-Outery Double Auctions	p. 241
Sealed-Bid Double Auctions	p. 241
Web Auctions and Related Businesses	p. 243
General Consumer Auctions	p. 243
Specialty Consumer Auctions	p. 249
Business-to-Business Auctions	p. 252
Auction-Related Services	p. 255
Seller-Bid (Reverse) Auctions	p. 256
Group Purchasing Sites	p. 258
Virtual Community and Portal Strategies	p. 259
Mobile Commerce	p. 259
Electronic Marketplaces	p. 260
Intelligent Software Agents	p. 261
Push Technology	p. 263
Virtual Communities	p. 263
Early Web Communities	p. 264
Web Community Consolidation	p. 265
Web Portal Strategies	p. 265
Chapter 7 The Environment of Electronic Commerce: International, Legal, Ethical, and Tax Issues	p. 275
International Nature of Electronic Commerce	p. 276
Trust and Culture on the Web	p. 277
Language Issues	p. 278
Culture Issues	p. 281
Infrastructure Issues	p. 287
The Legal Environment of Electronic Commerce	p. 290
Borders and Jurisdiction	p. 290
Jurisdiction on the Internet	p. 293
Contracting and Contract Enforcement in Electronic Commerce	p. 296
Web Site Content Issues	p. 302
Web-Based Crime, Terrorism, and Warfare	p. 307
Ethical Issues	p. 308
Ethics and Web Business Policies	p. 309
Privacy Rights and Obligations	p. 309
Communications with Children	p. 312
Taxation and Electronic Commerce	p. 314
Nexus	p. 314
Income Taxes	p. 314
Sales Taxes	p. 316
Technologies for Electronic Commerce
Chapter 8 Web Server Hardware and Software	p. 326
Web Server Basics	p. 327
Types of Web Sites	p. 328
Web Clients and Web Servers	p. 329
Dynamic Content	p. 330
Various Meanings of "Server"	p. 331
Web Client/Server Communication	p. 331
Two-Tier Client/Server Architecture	p. 332
Three-Tier and N-Tier Client/Server Architectures	p. 334
Software for Web Servers	p. 335
Operating Systems for Web Servers	p. 335
Web Server Software	p. 337
Finding Web Server Software Information	p. 342
Web Site and Internet Utility Programs	p. 343
Finger and Ping Utilities	p. 343
Tracert and Other Route-Tracing Programs	p. 344
Electronic Mail	p. 345
Telnet and FTP Utilities	p. 347
Indexing and Searching Utility Programs	p. 349
Data Analysis Software	p. 349
Link-Checking Utilities	p. 350
Remote Server Administration	p. 351
Web Server Hardware	p. 352
Server Computers	p. 352
Web Server Performance Evaluation	p. 354
Web Server Hardware Architectures	p. 356
Web Hosting Choices	p. 359
Chapter 9 Electronic Commerce Software	p. 368
Basic Functions of Electronic Commerce Software	p. 369
Catalog Display	p. 370
Shopping Cart	p. 371
Transaction Processing	p. 375
Advanced Functions of Electronic Commerce Software	p. 376
Middleware	p. 376
Application Integration and Databases	p. 377
Web Services	p. 379
Integration with ERP Systems	p. 381
Electronic Commerce Software for Small and Mid-Sized Companies	p. 382
Basic Commerce Service Providers	p. 384
Mall-Style Commerce Service Providers	p. 386
Estimated Operating Expenses for a Small Web Business	p. 389
Electronic Commerce Software for Medium-Sized to Large Businesses	p. 390
Web Site Development Tools	p. 390
Intershop Enfinity	p. 391
IBM WebSphere Commerce Professional Edition	p. 392
Microsoft Commerce Server 2002	p. 393
Electronic Commerce Software for Large Businesses	p. 394
Enterprise-Class Electronic Commerce Software	p. 395
Customer Relationship Management Software	p. 397
Supply Chain Management Software	p. 397
Content Management Software	p. 398
Knowledge Management Software	p. 399
Chapter 10 Security Threats to Electronic Commerce	p. 406
Internet Security Issues Overview	p. 407
Computer Security Classifications	p. 409
Security Policy and Integrated Security	p. 409
Intellectual Property Threats	p. 411
Cybersquatting	p. 411
Name Changing	p. 413
Name Stealing	p. 413
Threats to the Security of Client Computers	p. 414
Active Content	p. 414
Steganography	p. 425
Threats to the Security of Communication Channels	p. 425
Secrecy Threats	p. 426
Integrity Threats	p. 429
Necessity Threats	p. 429
Threats to the Physical Security of Internet Communications Channels	p. 430
Threats to Wireless Networks	p. 430
Threats to the Security of Server Computers	p. 431
Web Server Threats	p. 431
Database Threats	p. 434
Common Gateway Interface Threats	p. 434
Other Programming Threats	p. 435
Threats to the Physical Security of Web Servers	p. 436
Organizations that Promote Computer Security	p. 437
Chapter 11 Implementing Electronic Commerce Security	p. 445
Electronic Commerce Security Objectives	p. 446
History of Security in Computer Information Systems	p. 446
Security Requirements for Electronic Commerce	p. 447
Protecting Intellectual Property	p. 448
Protecting Privacy of Web Site Customers	p. 451
Protecting Client Computers	p. 454
Digital Certificates	p. 454
Client Security in Microsoft Internet Explorer	p. 457
Client Security in Netscape Navigator	p. 460
Using Antivirus Software	p. 462
Protecting Electronic Commerce Communication Channels	p. 462
Encryption	p. 463
Encryption Algorithms and Standards	p. 467
Secure Sockets Layer (SSL) Protocol	p. 468
Secure HTTP (S-HTTP)	p. 472
Ensuring Transaction Integrity with Hash Functions	p. 474
Ensuring Transaction Integrity with Digital Signatures	p. 474
Guaranteeing Transaction Delivery	p. 476
Protecting the Web Server	p. 476
Access Control and Authentication	p. 478
Operating System Controls	p. 480
Firewalls	p. 481
Computer Forensics and Ethical Hacking	p. 483
Physical Security	p. 484
Chapter 12 Payment Systems for Electronic Commerce	p. 490
Online Payment Basics	p. 492
Payment Cards	p. 494
Advantages and Disadvantages of Payment Cards	p. 495
Payment Acceptance and Processing	p. 496
Electronic Cash	p. 499
Holding Electronic Cash: Online and Offline Cash	p. 502
Advantages and Disadvantages of Electronic Cash	p. 502
How Electronic Cash Works	p. 503
Providing Security for Electronic Cash	p. 504
Electronic Cash Systems	p. 505
Electronic Wallets	p. 512
Microsoft .NET Passport	p. 514
Yahoo! Wallet	p. 515
W3C Micropayment Standards Development Activity	p. 516
The ECML Standard	p. 517
Stored-Value Cards	p. 519
Magnetic Strip Cards	p. 520
Smart Cards	p. 520
Integration
Chapter 13 Planning for Electronic Commerce	p. 532
Planning Electronic Commerce Initiatives	p. 533
Identifying Objectives	p. 533
Linking Objectives to Business Strategies	p. 534
Measuring Benefit Objectives	p. 535
Measuring Cost Objectives	p. 536
Comparing Benefits to Costs	p. 541
Return on Investment (ROI)	p. 541
Strategies for Developing Electronic Commerce Web Sites	p. 543
Internal Development vs. Outsourcing	p. 544
Selecting a Hosting Service	p. 547
New Methods for Implementing Partial Outsourcing	p. 548
Managing Electronic Commerce Implementations	p. 550
Project Management	p. 550
Project Portfolio Management	p. 552
Staffing for Electronic Commerce	p. 552
Post-Implementation Audits	p. 554
Glossary	p. 562
Index	p. 595

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