1. 12
E-Commerce Overview

2. Learning Outcomes Define E-commerce
Identify Benefits & Risks of E-Commerce
Describe E-Commerce Business Models
Describe E-Commerce Security & Encryption
Describe Issues Related to E-Commerce

3. E-Commerce In Relation to the Sale of Goods & Services:
Allow Individuals & Organizations to Exchange Information
Integrate Communications, Data Management, & Security
Major Functionality:
Buying of Goods
Selling of Goods
Performance of Financial Transactions over the Internet.

4. Advantages Business Consumer Reduced Costs
Increased Customer Satisfaction
More Effective Data Management
Potentially Higher Sales
Consumer
Convenience
Easier Comparison Shopping
Wider Selection of Goods

5. Risks Business Consumer Need for a Robust, Reliable Web Site
Fraudulent Transactions
Customer Reluctance to Purchase Online
Increased Competition
Consumer
Possible Security Issues
Possible Privacy Issues
Purchasing from Photos & Descriptions

6. Issues Intellectual Property Security Fraud Taxation
International Commerce

7. Trends Positive Negative Bigger Product Images More Robust Reviews
Glean More Detail
More Robust Reviews
Useful Coupons
Negative
Smaller and Hidden Product Descriptions
Fail to Give Feedback After Adding Items to the Cart

8. E-Commerce Business Models
B2C (Business-to-Consumer)
B2B (Business-to-Business)
C2C (Consumer-to-Consumer)
B2G (Business-to-Government)

9. Web Services Transmit Data Between Companies Using the Internet
Software System
Support Interoperable Machine-to-machine Interaction
Other Systems Interact Using HTTP with XML

10. Security Encryption Decryption
Ensures Privacy within Organization & on Internet
Converts Data into an Unreadable Format
Ciphertext
Decryption
Process of Converting Ciphertext Back into its Original Form
Plaintext or Cleartext
Encrypt/Decrypt Process Requires Algorithm & Key

11. Symmetric-Key Encryption
AKA Single-key Encryption
Encryption & Decryption Use Same Key
Sender & Receiver Must Know Key
Before Communicating Using Encryption
Advantage: Speed

12. Asymmetric-Key Encryption
AKA Public-key Encryption
Two Keys are Created at the Same Time
Public Key
Private Key
Much Slower than Symmetric-key Encryption

13. Hash Encryption Purpose is to Verify Integrity of Information
Hash Algorithm Transforms String of Characters
Creates “Digest”
Shorter Fixed-length Value or Key that Represents Original String
One-way Encryption
For Information that Will Not be Read or Decrypted

14. Secure Sockets Layer (SSL)
Protocol that Allows Data to be Privately Exchanged
Over Public Networks
Developed by Netscape
Encrypts Data Sent Between Client & Server
Utilizes Both Symmetric & Asymmetric Keys
https Protocol
Browsers Display a “Lock” Icon

15. Secure Sockets Layer (SSL)
Server & (Optionally) Client Digital Certificates
For Authentication
Symmetric-key Cryptography
Using a "Session Key" for Bulk Encryption
Public-key Cryptography for Transfer of Session Key
Hash Encryption to Verify Integrity of Transmission

16. Digital Certificate Form of an Asymmetric Key
Used by SSL to Authenticate Identity of Web Server
Contents of a Digital Certificate Include:
Public Key
Effective Date of Certificate
Expiration Date of Certificate
Details About Certificate Authority (Issuer)
Details About Certificate Holder
A Digest of Certificate Content

17. Digital Certificate Obtaining
Request Certificate from a Certificate Authority
Pay Application Fee
Certificate Authority:
Verifies Your Identity
Issues Your Certificate
Supplies You With a Public/Private Key Pair
Store Certificate In Server, Browser, or Application
Certificate Authority Makes Your Certificate Publicly Known