E-commerce Advantages, Disadvantages, and Threats

Study Notes

Enables buying and selling of goods and services from home or business premises.
Facilitates transactions anytime and anywhere, enhancing convenience.
Consumers can easily find the lowest prices for products or services.
Allows businesses to tap into a global market and establish international partnerships.
Reduces order processing costs, making transactions more efficient.
Accelerates electronic funds transfers, enhancing payment processes.
Simplifies supply chain management, allowing tracking and ordering from multiple vendors.

Electronic Data Interchange (EDI) can be costly for small businesses to implement.
Internet security issues, such as viruses and hacking, pose risks to e-commerce operations.
Privacy concerns exist, with no guarantee that e-transactions remain confidential.
Shopping experience may feel impersonal due to the lack of face-to-face interactions.

Hackers may target e-commerce sites to steal data or disrupt services.
Risk of server breaches and theft of customer information.
Impersonation attacks through cloned e-commerce sites to deceive customers.
Insider threats from detractors within the organization who may sabotage systems.
Identifying potential threats from competitors and former employees is crucial for security.

Ubiquity: Market access everywhere through mobile devices, enhancing convenience and reducing shopping costs.
Delivery Logistics: Involves coordinating order receipts, warehouses, carriers for product delivery, and invoicing systems.
Returns Management: Establishes processes for handling defective or surplus goods returned by customers.

Performance assessed on cost reduction and value enhancement; vital for managing operational budgets.
Efficiency: Focuses on minimizing costs through lower inventory levels and higher turnover rates.
Responsiveness: Concerns rapid adjustment to market demands, balancing inventory costs with sales opportunities.
Effectiveness: Pertains to the value creation for customers, emphasizing "value chains" over mere cost reduction.

Speed: Quick response to market changes contributes to competitive advantage.
Cost Efficiency: Utilizes the Internet to decrease operational costs within the supply chain.
Flexibility: Easier adaptation to changes in supply and demand, shortening the supply chain duration.

Facilitates standardized electronic communication of business information.
EDI reduces transaction costs and enhances partner relationships.
EDI is a component of broader electronic commerce, improving information exchange with trading partners.

Semantic Layer: Defines business applications and required information exchanges (e.g., purchase orders).
Standards Translation Layer: Standardizes communication formats (ANSI X12 vs. EDIFACT).
Transport Layer: Specifies the methods of data transmission (email, postal services).
Physical Network Layer: Includes the infrastructure for data transfer (Internet, dial-up lines).

Privacy: Ensures that information is accessed only by authorized individuals through encryption methods.
Authorization: Determines whether a user has the right to request or perform specific actions, often linked with authentication processes.

SSE-CMM: Provides models for security management in IT systems.
COBIT: Focuses on creating clear IT security policies and practices.
ISO 17799: Outlines guidelines for implementing security management frameworks across various security domains.

A network security system that controls traffic based on set rules, creating barriers between secure internal networks and external threats.
Available as both software applications and hardware appliances, enhancing network protection.
Basic firewall functions are often integrated into personal computer operating systems and routers.