Intro 1

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• Technology issues in Electronic Commerce
• Basic Networking How does the internet work
• Data representation XML
• Web programming JavaScript, PHP, SQL
• Cryptography
• Other topics

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What is e-Commerce?
Many definitions Narrow view Use of the
internet to enable business transactions Wide
view Electronically based (commercial)
activities For example The use of the Internet
and the web to transact business. More
formally, digitally enabled commercial
transactions between and among organizations and
individuals. K. Laudon and C. Traves,
E-commerce, Addison Wesley 2001
E-commerce and e-businessInternet terminology is
still in a state of flux nowhere is this more
evident than in the past use of the terms
e-commerce and e-business. Both have been used to
describe any business activity which uses the
Internet. However, some consensus is emerging in
that the terms are gradually being employed in a
more focused way. The term e-commerce is
increasingly being used to describe online
retailing, for example the use of the Web to sell
books. The term e-business is increasingly being
used to describe all business activities using
the Internet, not just online retailing. D.
Ince, Developing Distributed and E-commerce
Applications, Addison Wesley 2002
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E-Economy

• Richard Simpson, Director, Electronic Commerce
  Branch, Industry Canada
• Its not just about how the ICT sector has
  grown, its about how ICTs have stimulated
  productivity, trade and investment in all
  sectors.

The following slides are an excerpt from
Simpsons EMEC Seminar 2005
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Contributions to aggregate labour productivity
growth Acceleration 1990-1995 to
1996-2002 Contributions to value added per person
engaged, in percentage points
1.25
0.75
0.25
-0.25
Australia
Canada
Mexico
Ireland
US
UK
-0.75
Japan
Germany
-1.25
Total Change 0.04 0.40 0.41
0.62 1.31 1.37
-0.73 -1.12
ICT-producing (manufacturing services)
ICT-using (services)
Other activities
Source The Economic Impact of ICT. OECD, 2004.
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Businesses with Internet Access and Web Site,
2003 (as a percentage of all firms)
Source OECD, Information Technology Outlook 2004
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Broadband use continues to grow
Broadband penetration per 100 inhabitants, top 10
countries
Per 100 inhabitants
Source Statistics Denmark, 2005
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Canadians are moving quickly to high-speed
Internet Use and Speed by Households
Source Statistics Canadas Household Internet
Use Survey, 2004
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E-Commerce Exceeding Expectations
Note Charts reflect "Internet Commerce", a
subset of electronic commerce that includes the
purchase or trade of goods and services via the
Internet / World Wide Web, but excludes financial
services' transactions Source International
Data Corporation, 1999 and 2002
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E-Commerce Growth in Canada A Near 400 Increase
since 2000
Value of Online Sales 2000-2004
B (Canadian)
Source Statistics Canada, Survey of Electronic
Commerce and Technology, April 2005
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Dot-com Stars are Still Around
2004 net sales 6.92 billion 2003 net sales
5.26 billion 2002 net sales 3.93 billion 2001
net sales 3.12 billion 2000 net sales 2.76
billion
2002 net income 250 million 2003 net income
442 million 2004 net income 778 million 22
local language sites
Jan.- July 2004 revenues 1.35 billion Jan. -
July 2003 revenues 559.8 million Jan. - July
2004 net income 143 million
Jan. - July 2003 net income
58 million
2004 net income 519 million 2003 net
income 238 million 2002 net income 42
million Hosts more than 20,000 small businesses
to capture new markets
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E-Business has Entered the Economic Mainstream
E-commerce will continue to change every kind of
business, offline as well as online
The Economist, May 15 2004
The Web players new assault should keep the
productivity gains coming. Business Week, May 10
2004
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Internet Threats Incidents are increasing
In 2004, 1 in every 16 e-mails carried a virus
CanCERT is Canadas first national Computer
Emergency Response Team (CERT) operated 24/7 by
EWA-Canada since 1998. The above graph depicts
the number of attacks per month against CanCERT
networks during the period August 2001 to March
2005.
Source MessageLabs, December 6, 2004
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Ongoing concerns about privacy and security
Business
Consumers

• Not willing to give my credit card information
  over the Internet to purchase from a well-known
  store
• I mind companies using information about me
  even if I know about it and can stop it.

of businesses identifying barrier as
significant to adoption of e-business
Source Ekos, May 2005
Source Ekos, January 2005
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Spam, The Internet "KILLER"
Source Messagelabs, 2005
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The costs of spam

• Estimates of the annual cost of spam to the U.S.
  economy
• 10 billion (Ferris Research)
• 87 billion (Nucleus Research)
• Radicati Group and Message Labs estimate
  worldwide cost to businesses at 20.5 billion
• Loss of public confidence in Internet
  communications
• 25 of Internet users have curtailed their use of
  e-mail because of spam (Pew Foundation-2003)

End Simpson slides
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Business
eCommerce
Law Policy
Technology
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E-Commerce Technology

• Technology should not be at the center of your
  business case.
• However, you need a good understanding of
  technology to enable your business

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E-Commerce I (1995-2000) Explosive growth,
dot.com collapse E-Commerce II (2001-2005) Reasses
sment of e-commerce companies