Chapter 4 Flashcards
Conducting business activities electronically over computer networks
Electronic commerce
Business activities that are strong candidates for conversion to e-commerce: (3)
Paper based
Time-consuming
Inconvenient for customers
E-Commerce Challenges
Dealing with consumer privacy concerns
Overcoming consumers’ lack of trust
Overcoming global issues
Someone using your personally identifying information without your permission to commit fraud
Identify theft
Advantages of Electronic and Mobile Commerce
Reduce costs
Speed up the flow of goods and information
Increase accuracy
Improve customer service
Direct sale from business to consumer through electronic storefronts
Electronic retailing (e-tailing)
Single Web site that offers many products and services at one Internet location
Cybermall
Electronic forum where manufacturers, suppliers, and competitors buy and sell goods, trade market information, and run back-office operations
Electronic exchange
Owned and operated by a single company
Private exchanges
Owned and operated by industry groups
Public exchanges
Methods to increase security (4)
-Address Verification System
-Card Verification Number technique
-Visa’s Advanced Authorization process
-Federal Financial Institutions Examination Council’s “Authentication in an Internet Banking Environment” guidelines
Works of the mind that are distinct somehow and are owned or created by a single entity eg: copyright
Intellectual property
The use of any of several technologies to enforce policies for controlling access to digital media such as movies, music, and software
Digital rights management (DRM)
Sending bogus messages to pry personal information from customers by convincing them to go to a “spoof” Web site
Phishing
Can arise in a pay-per-click online advertising environment when additional clicks are generated beyond those that come from actual, legitimate users
Click fraud
Attachment to an e-mail message or data embedded in a Web site that verifies the identity of a sender or Web site
Digital certificate
Trusted third-party organization or company that issues digital certificates
Certificate authority (CA)
-Capture and process detailed data necessary to update records about fundamental business operations
-Include order entry, inventory control, payroll, accounts payable, accounts receivable, general ledger, etc.
-Provide valuable input to:
Management information systems, decision support systems, and knowledge management systems
Transaction processing systems (TPSs)
Data processing in which business transactions are:
Accumulated over a period of time
Prepared for processing as a single unit or batch
Payroll transactions and billing are typically done via batch processing.
Batch processing system
Data processing in which each transaction is processed immediately, consequently, at any time, the data in an online system reflects the current status.
This type of processing is essential for businesses that require access to current data such as airlines, ticket agencies, and stock investment firms.
Online transaction processing (OLTP)
Transaction processing cycle (6)
- Data collection
- Data editing
- Data correction
- Data manipulation
- Data storage
- document production
