Research on Electronic Commerce

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Research on Electronic Commerce
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Research on Electronic Commerce

• Travis Flood E-Commerce and Business Strategy
• Jeff Campbell Intermediaries and the Internet
• Piyanuch Chuasiripattana Payment Systems
• Matthew Janocko Intelligent Agents
• Kent Woodburn Role of Digital Signatures

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E-Commerce and Business Stragegy
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Strategic Relationship Model
Manufacturer/ Supplier
Customer
End Run
Marketplace
Bus to Cus
Bus to Bus
Intermediary
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Business to Customer

• Selling
• Transacting along Value Chain
• Communication
• Service

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Business to Business

• Selling
• Transacting along Value Chain
• Communication
• Service

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Marketplace

• Selling
• Transacting along Value Chain
• Communication
• Service

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End Run

• Selling
• Transacting along Value Chain
• Communication
• Service

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Intermediaries and the Internet
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Intermediaries and the Internet

• Intermediaries add costs
• wholesalers
• retailers
• The Internet allows companies to get closer to
  the end-user
• personalization
• global reach

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Intermediaries and the Internet

• Intermediaries add value
• items from multiple vendors in one location
• customization
• reduced logistics costs for producers

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Intermediaries and the Internet

• Cybermediary
• aggregate buyer demand or seller products to
  achieve economies of scale
• act as an agent of trust between buyer and seller
• facilitate the market by reducing operating costs
• match buyers to sellers

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Intermediaries and the Internet

• amazon.com
• search engine
• retains user preferences for orders
• Auto-By-Tel
• matches used car buyers to member agencies
• eBay
• matches multiple buyers to multiple sellers
• members provide feedback on participants

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Payment Systems
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Drivers in the development

• Type of Transaction
• Total cost of making payment should be
  cost-effective
• Payment system should be varied- depends on the
  value of the products and the cost of payments.

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2 major type of payments

• Centrally Account Payment
• Use SET (Secure Electronic Transaction)
  Standards.
• Electronic check, credit cards
• Cyber Wallet
• Electronic Cash Payments
• Stored Valued Cards
• Electronic Cash/Coin

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Future

• The trend that cyber wallet will become a part of
  web browser.
• Combine Cyber tokens, e-check, debit cards, and
  credit cards into Cyber Wallet.

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Intelligent Agents
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Intelligent Agents

• Intelligent Agent Definition
• An intelligent agent is an atomic software entity
  that takes autonomous action for the benefit of
  the owner, without constant human input and
  intervention.
• Intelligent Agents Uses / Examples
• Comparative Shopping
• Online Stock Monitoring and Trading

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Intelligent Agents in the Buying Process

• 1 Needs Identification
• Amazons Eyes www.amazon.com
• 2 Product Brokering
• Firefly www.firefly.com
• PersonaLogic www.personalogic.com
• Tete-a-Tete
• (www.ecommerce.media.mit.edu/tete-a-tete )

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Intelligent Agents in the Buying Process

• 3 Merchant Brokering
• Jango www.jango.excite.com
• Andersen Consultings Bargainfinder
  www.bf.estar.ac.com.bf
• 4 Negotiation
• Kasbah www.kasbah.media.mit.edu
• AuctionBot www.auction.eecs.umich.edu
• Tete-aTete www.ecommerce.media.mit.edu/tete-a-tete
  
• 5 Purchase and Delivery
• 6 Product Service and Evaluation

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Mobile Agents

• Dispatched to do owners business
• Made of code and parameter settings
• Can be active on foreign servers
• Use Java or XML class types
• Distributed Processing
• Security Features
• To Learn More Communications of the ACM

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Role of Digital Signatures
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Digital Signatures (Key Points)

• E-commerce is a rapidly growing marketpeople
  want security
• Digital Signatures are a way to get the needed
  securityPublic Key Encryption is the technique
  used
• Digital Certificates used to authenticate
  signatures
• The Legal Nature of the Signature
• An outlook on the future

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Digital Signatures

• E-commerce should generate 3.2 Trillion dollars
  by 2003
• 81 of internet users plan to buy on-line in 1999
• there needs to be a way to secure these
  transactions over the internet
• Digital signatures are one way to increase
  security

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Digital Signatures

• Provide sense of legality and security
• uses encryption to ensure security of
  transmission - Public Key Encryption
• due to electronic nature harder to forge or alter
  data
• allows for non-repudiation

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Public Key Encryption

• Prevents a document from being read, altered, or
  accepted by unauthorized party
• two keys - public private
• private - creates jumbled content
• public - returns jumbled content to original form

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Digital Certificates

• Will identify a party as a legitimate entity
• are issued by third party agents - certification
  authorities
• will include the partys name, serial no.,
  expiration date, the public key, and the
  certification authoritys signature

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Traditional Signature (A.B.A.)

• Signature acts as evidence
• Signature acts as ceremony
• Signature acts as approval
• Signature acts as efficiency
• Thus once signed, a document is attributable,
  legal, authorizing, and clarifying

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Digital Signature (A.B.A. )

• The digital signature has two additional
  attributes
• first, signer authentication - it will identify
  who signed will be hard to copy
• second, documentation authentication - identifies
  what has been signed makes it hard to alter
  content

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An Outlook

• The internet is the fastest growing market today
• digital signatures will become legally recognized
  as more states pass legislation
• e-commerce will become the American Express of
  the internet

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Questions??