Systems that support electronically executed business transactions.

Transaction An exchange involving goods or services, such as buying medical supplies for a hospital or purchasing and downloading music on the Internet A transaction processing system (TPS) An information system used to support and record transactions such as paying for products or paying an employee.

The Transaction Processing Cycle Data Collection Original Data Data Editing Data Manipulation Data Storage Data Production Data Correction TPS Reports “Good” data“Bad” data Capture transaction-related data such as item number, quantity, and payment method Check validity of the data entered, such as whether item number and credit card number are valid Request correction if data editing reveals invalid data. Process the transaction data, calculate totals, tax, shipping, and so on. Store transaction-related data in the transaction database Data Output: Output receipts, picking lists for the warehouse, or other documents

Types of E-Commerce Business to consumer Connects individual consumers directly with sellers to purchase products.

Types of E-Commerce Business to Business Transactions between businesses Examples: Purchasing raw materials for production of products Purchasing tools, parts, and machinery for the production line Purchasing office furnishings, equipment, and products Purchasing transportation and shipping services

Types of E-Commerce Consumer to Consumer Uses the Web to connect individuals who wish to sell their personal belongings with people shopping for used items

Types of E-Commerce M-Commerce (Mobile commerce) Takes place over wireless mobile devices such as handheld computers and cell phones. Examples: Purchasing and downloading songs directly to your phone Buying and selling stocks from you Blackberry

“If You Build It, They Will Come” Simply creating a website for the purposes of e- commerce will not guarantee any business The 3C’s approach is used to build traffic to their website

3C’s Approach For capturing the interest of the online community: Content Community Commerce

3C’s Approach For capturing the interest of the online community: Example: Content: A Web site sponsored by a health food company might offer valuable suggestions for good health. It might also offer a calculator to keep track of calories to its visitors. Community: As customers make regular return visits to the site because of the content, a community is built. Perhaps, a free membership can be offered to encourage return visits. Commerce: Once a community is established, visitors may begin making health food and equipment purchases from the site.

Security Issues Digital Certificate A type of electronic business card that is attached to Internet transaction data to verify the sender of the data. Digital certificates are provided by certification authorities such as VeriSign

Security Issues A digital certificate contains the owner’s name, a serial number, an expiration date, and a public key. Encryption Uses high-level mathematical functions and computer algorithms to encode data so that it is unintelligible to all but the intended recipient.