Electronic Commerce Notes
Introduction to Electronic Commerce
Commerce refers to the exchange of goods and services. Electronic commerce (e-commerce) is
commerce conducted over electronic systems such as the Internet. The e-commerce framework
includes infrastructure, services, and applications. Media convergence (TV, radio, Internet) plays a
major role in enabling e-commerce applications such as online shopping, banking, and digital
services.
The Network for Electronic Commerce
E-commerce requires a strong network for data transfer. The Information Highway (I-way) is
influenced by market forces like customer demand and competition. Components include network
access equipment (routers, modems) and global information distribution networks that enable
worldwide transactions.
The Internet as a Network Infrastructure
The Internet serves as the backbone for e-commerce. Key terms include IP, DNS, and TCP.
NSFNET was an early Internet backbone. Governance is handled by organizations like the Internet
Society (ISOC), ensuring open standards and coordination.
Network Security & Firewalls
Security is critical in client-server e-commerce systems. Threats include hacking, phishing, and
malware. Firewalls act as barriers between trusted and untrusted networks. Data security involves
encryption, while message security ensures safe communication via protocols like SSL/TLS.
Electronic Commerce & World Wide Web
The WWW provides the platform for most e-commerce applications. Its architecture involves clients
(browsers), servers, and protocols (HTTP/HTTPS). Web security involves SSL certificates,
authentication, and secure transactions.
Consumer Oriented Electronic Commerce
Consumer-focused e-commerce includes online shopping, auctions, and travel booking. Mercantile
models describe processes like catalog browsing, order placement, and payments. From the
merchant’s perspective, it includes inventory, order management, and delivery systems.
Electronic Payment Systems
Electronic payments allow digital transactions. Types include credit cards, debit cards, e-wallets,
and mobile payments. Token-based systems (like digital coins), smart cards, and credit card
networks are common. Threats include fraud, identity theft, and phishing.
Inter-organizational Commerce & EDI
Electronic Data Interchange (EDI) allows businesses to exchange data electronically. Applications
include supply chain management, billing, and logistics. Issues include legal frameworks, security,
and privacy. EDI forms the backbone of B2B e-commerce.
The Corporate Digital Library
A corporate digital library stores and manages digital resources. It supports knowledge
management with electronic documents, databases, and warehouses. Issues include storage,
access control, and document security. Data warehouses provide integrated storage for business
intelligence.