E-Commerce Application Development - Coursework Example

E-Commerce Application Development Table of Contents Table of Contents 2 Introduction 3 2- Contemporary E-Commerce Models 4 3- Online payment systems 6 4- Promoting or marketing e-commerce 8 5- Security threats and precautions 10 In this section I will outline some online business security threats and precautions we can take regarding better online business management. First of all, I will outline few problems that are related to the e-payment system. I will try to elaborate these problems in scenario of different online transaction. Having an online deal also requires the online payment. In pervious few years this concern has turned out to be great confront for the online customers. There are lots of cases regarding the online business that have been registered; these embrace online fraud, credit card password theft and prohibited credit transfer (Onlineshoppingrights, 2009). There are lots of other security threats we can face regarding the online business information theft. The hacker hacks the business information and cause a huge damage. This valuable business information can be its customer record or deal/sales record. In this case business customer can have less confidence on the business policies; this will be a great danger for the business (Norton, 2001) and (Shelly, Cashman, & Vermaat, 2005). 10 Next main security threat we have is regarding computer virus attacks on the business network or computer system. These viruses can delete damage or destroy the business system and stop the overall business operation that is really problematic for the business. In the scenario business customer can leave the business (Norton, 2001) and (Shelly, Cashman, & Vermaat, 2005). 10 Here I will suggest some online business security management initiatives those can offer some better business security management and handling. Initially for an online business we need to establish a security policy that defines the possible security threats and initiates to counter those security breaches. Next we need to make available the customer privacy policy on the web. This will offer the customer to recognize the main security initiatives that business has taken to secure mange and control the business and customer information. The next step we need to take is regarding the business information security management about the business network security. Here we implement a network firewall that protects the business from some external attacks. Here we also need to install anti virus, anti spy and anti phishing system to ensure the business network security and integrity (Norton, 2001) and (Shelly, Cashman, & Vermaat, 2005). 11 6- Conclusion 11 7- Bibliography 11 1- Introduction With the passage of time e-commerce technologies have been swiftly emerging. The people using Internet for shopping of products and services are growing day by day. The Internet and especially the growing development of electronic commerce in the mid-1990s made business-to-customer and business-to-business relationships more attractive and appropriate for comprehensive businesses and international organizations. This brought transformations in customer behaviors and thoughts regarding worldwide goods and services using incorporated and shared supportive ways for information distribution and retrieval. The growth of the Internet, which drastically augmented the utilization of e-commerce by businesses or organizations during the mid-1990s, offered a key role in diminishing distribution expenditures, therefore, it facilitated lower the ratio of fixed costs in the cost structure (Burger, 2006), (Yue & Wang, 2009), and (Kim, Kim, & Shin, 2009). No doubt, the Internet has turned out to be an essential part of how we exchange information or communicate by others and how we manage business. The rapidity as well as ease of the online experience makes it a superlative means intended for customers and businesses. This report will outline online business and different related aspects of electronic commerce. This report will discuss different contemporary e-commerce models with real world applications. This report will also discuss different options and technologies for the online payment. After that, there will be discussion about the options for promoting or marketing e-commerce. And in the last section the main security threats to our business website will be discussed. 2- Contemporary E-Commerce Models The e-commerce model is a modern approach for businesses to generate revenue or earn money and enlarge their customer base (Jeanty, 2009). The e-commerce models mainly clarify diverse methods for earning profits. The e-commerce model describes the main business earnings and its relation to the sales of products or services. This can be both for selling straightly from the main or, dealer of the service in the course of a mediator who will obtain a cut of the selling cost (Carter, 2009). There are numerous ways for the online revenue generation: (Turban, Leidner, McLean, & Wetherbe, 2005, p. 179): E-Commerce Business Models Electronic Commerce Model Description Online direct marketing Electronic tendering systems Name-your-own-price Find-the-best-price Affiliate marketing Viral marketing Online auctions Electronic marketplaces and exchanges Value-chain service providers Information brokers Deep discounters Membership Supply chain improvers Manufacturers or retailers use this model to sell openly to customers. This model is very competent for digital products and services. This model can facilitate for customization. Mostly software development firms use this model. Organizations asking bids from suppliers perform online tendering, utilize B2B reverse auctions method. Customers make a decision how much they are able to give. Priceline.com is the example of this model. Customers mention their requirement. A mediator for instance, Hotwire.com compares suppliers and presents the desirable price. Vendors invite associate to add logos or ad on their web site. In this way, If customers click, come to vendors, and buy, vendors pay commission to partners. Applications of this model are electronic currency sellers and buyers. Examples are: https://secure.me-gold.com/e-currency_affiliate.php and http://www.incrementalgold.com/contact_us.php Distribute company’s brand or ad on the web site such as forum by word-of-mouth. Viewers will transfer that information to their friends. Carrying out auctions of an assortment of the web sites. This is very well-liked in C2C, but gaining ground in other types of EC. Develop virtual marketplaces (which can be private or public) where transactions can be carried out in an proficient way (less transaction cost, more information to buyers and sellers) For example Paypal.com Offer specialized service in supply-chain operations for instance Offering logistics or payment services. Offer services and Electronic commerce information for instance trust, evaluating vendors and products, content, matching buyers and sellers. Increase market share by means of deep discounts, for instance Half.com for customers who believe only price in their buying decisions. Only members are allowed to use the services offers, such as access to specific information, conducting trades, etc. for instance, Egreetings.com. Reorganize supply chains to hubs, or additional configuration. Augment partnership; diminish delays, and smooth supply-chain flows. 3- Online payment systems Payments are an essential element for conducting business, whether in the customary means or online. Unluckily, in many cases customary payments methods are not successful for electronic commerce, especially for B2B (Turban, Leidner, McLean, & Wetherbe, 2005, p. 208). Figure 1E-Commerce Services, Image Source: (Turban, Leidner, McLean, & Wetherbe, 2005, p. 209) Here are few methods used for e-commerce: (Turban, Leidner, McLean, & Wetherbe, 2005, pp. 210-212) Electronic Checks: Electronic checks (e-checks) are like usual paper checks. People used them generally in B2B. In the first step, the customer opens an account with a bank. When the customer buys a product or a service, he or she e-mails an encoded electronic check to the seller. The seller submits the check in a bank account, and money is transferred from the buyer’s account into the seller’s account (see Echecksecure from etroqgroup.com and eccho.org for details) (Turban, Leidner, McLean, & Wetherbe, 2005, pp. 210-212). Electronic Credit Cards: This service makes it achievable to charge online payments to one’s credit card account. For security, only encoded credit cards should be used. Credit card details can be encoded by using the SSL protocol in the buyer’s computer (available in standard browsers) (Turban, Leidner, McLean, & Wetherbe, 2005, pp. 210-212). Purchasing Cards: The B2B comparable to electronic credit cards is purchasing cards. In many countries organizations pay other firms mainly through purchasing cards, instead of paying by paper checks. In addition, purchasing cards normally are utilized for accidental B2B purchases, and organizations usually restrict the amount per purchase (normally $1,000 to $2,000) (Turban, Leidner, McLean, & Wetherbe, 2005, pp. 210-212). Electronic Cash: Electronic commerce sellers and some buyers like better electronic cash. Electronic cash (e-cash) comes into view different major forms: Smart Cards: These cards are normally versatile; they can be utilized as a, debit card, credit card, or stored-value money card. Also, when used in department store chains, they can hold the buying information of users) (Turban, Leidner, McLean, & Wetherbe, 2005, pp. 210-212). Person-to-Person Payments: are a type of e-cash that allow the money transfer between two individuals, or between an individual and an organization, devoid of using a credit card. Now I will outline some main issues regarding the online payment system we are going to implement for our online business. In pervious few years security issues have turned out to be big problem for the online customers. There are lots of cases regarding the online frauds that have been registered; these involve online fraud, credit card password theft and prohibited credit transfer (Shandilya, 2007) & (eTrust , 2007)& (Russell, 2009) & (Oak, 2008). In this way it is necessary to use the most convenient and secure method. We will implement electronic cash method, because it can be used in diverse ways and different security methods can be applied to make the transaction secure. 4- Promoting or marketing e-commerce Marketing for the web based platform or ecommerce is all about attracting web users to our website if he once there, to becoming a customer. As we previously familiar to marketing that it is linked to the traditional business. For the traditional business marketing have need of substantial endeavor to attract the customer and bring them to our business location. This process takes more energy and money for the overall marketing process (webtransitions, 2009). In contrast, on Internet the marketing process is less costly and also requires fewer endeavors. Through a single mouse click we can bring customers to our business place. However it requires lot of research, effort and development to develop an effective marketing policy and offer a better business attraction to attract the customer (webtransitions, 2009). In case of development of some effective promotion or marketing policy for our web based business we need to implement lot different online marketing techniques, these can be following: The most important step toward the e-commerce marketing and promotion is the website structure. The website should be good looking, offer attractive feature, user centric design, navigation, dialog structure and operating all ads to business website marketing and promotion. The main and fundamental step towards the web based marketing is about creating an effective and simple Website. Through the development of the attentive business website, a customer will come to the business website and make sure that user will again visit or use the website. The next main approach or technique I have selected for the business is the website business blogs. This incorporates the concept of getting business products and service feedback. I have selected the technique of the blogging through which we can distribute the positive and best aspects of our business website and services. Web based ads are also better option for our business marketing. In this technique we will place some attractive ads on different websites those are viewed more. These websites can be Yahoo, Google, Youtube or FaceBook. Customer will see the ad and shift to our business platform through a single click. Another effective way of marketing which I will suggest is email based business marketing. In the technique we will send some ad and promotion based marketing emails to some online community. Through this technique we can have targeted, effective, less costly and more efficient marketing. 5- Security threats and precautions In this section I will outline some online business security threats and precautions we can take regarding better online business management. First of all, I will outline few problems that are related to the e-payment system. I will try to elaborate these problems in scenario of different online transaction. Having an online deal also requires the online payment. In pervious few years this concern has turned out to be great confront for the online customers. There are lots of cases regarding the online business that have been registered; these embrace online fraud, credit card password theft and prohibited credit transfer (Onlineshoppingrights, 2009). There are lots of other security threats we can face regarding the online business information theft. The hacker hacks the business information and cause a huge damage. This valuable business information can be its customer record or deal/sales record. In this case business customer can have less confidence on the business policies; this will be a great danger for the business (Norton, 2001) and (Shelly, Cashman, & Vermaat, 2005). Next main security threat we have is regarding computer virus attacks on the business network or computer system. These viruses can delete damage or destroy the business system and stop the overall business operation that is really problematic for the business. In the scenario business customer can leave the business (Norton, 2001) and (Shelly, Cashman, & Vermaat, 2005). Here I will suggest some online business security management initiatives those can offer some better business security management and handling. Initially for an online business we need to establish a security policy that defines the possible security threats and initiates to counter those security breaches. Next we need to make available the customer privacy policy on the web. This will offer the customer to recognize the main security initiatives that business has taken to secure mange and control the business and customer information. The next step we need to take is regarding the business information security management about the business network security. Here we implement a network firewall that protects the business from some external attacks. Here we also need to install anti virus, anti spy and anti phishing system to ensure the business network security and integrity (Norton, 2001) and (Shelly, Cashman, & Vermaat, 2005). . 6- Conclusion E-commerce is the most prevalent application of Internet. At the present, almost every organization or business offers the facility of e-commerce to their customers. In this report I have presented detailed analysis of the web based system implementation. In this report I have discussed some online business website revenue models, web based payment technologies, main marketing strategy and security threats and their effective management. I hope this report will offer a deep insight into the overall business and corporate online business development. 7- Bibliography 1. Burger, A. K. 2006. The B2B Renaissance, Part 2: Solutions in a Global Economy. Available at: http://www.ecommercetimes.com/story/54069.html [Accessed 05 December 2009]. 2. Carter, B. 2009. The 5 Best Revenue Models in E-Commerce History. Available at: http://ezinearticles.com/?The-5-Best-Revenue-Models-in-E-Commerce-History&id=102842 [Accessed 05 December 2009]. 3. couponwinner. 2009. Differtent type of online payment. Available at : http://couponwinner.com/different-types-of-payment.aspx [Accessed 05 December 2009]. 4. DuNg, A. (2009, June 12). Revenue model for Google, Amazon.com and EBay. 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