CHAPTER 1: OVERVIEW OF E-COMMERCEConcept and characteristics of E-commerce

What Is E-commerce?

– Use of Internet and Web to transact business– More formally:

Digitally enabled commercial transactions between and among organizations and individuals

Characteristics – E-commerce market is a market without borders.– The parties conducting transactions in e-commerce is not in direct contact

with each other. Most transactions conducted through electronic devices.– E-commerce activities are the participation of at least three entities, which

are indispensable network service providers, certification bodies.Limitations, benefits and impact of E-commerce

Benefits For society:– Restoration of habitats.– Improving the living standards of the people.– Increased access to products and services of developing countries to

poorer countries.– Promote the provision of public services.

For Business:– Expanding global markets– Cut down the costs– Strengthening relations custumers– Improved distribution system– Other benefits: facilitates launch new business projects and improve

business reputation, promoting specialization and help SMEs overcome these disadvantages ...

For Consumers:– Offered products and services varied, abundant, exceeding the limit of

space and time.– Reduced spending, saving time shopping.– Conditional impact and support each other in the community of e-

commerce businessLimitations Technical Limitations:

- The reliability and safety of the whole system.- Internet connection .- E-commerce servers, tools, software development.- Combining e-commerce software and other application software.

Commerce limitations:- Difficulties in changing consumer habits.- Laws, policies, taxes have not been finalized. -Safety and security is not absolute, increasing fraud.- The number of people involved in e-commerce is not large enough to achieve advantages of scale.

Impact of E-commerce

– Altering market nature.– Impact on production and business operations and administration.– Especially impact on marketing activities..

Levels and types of E-commerce transactions

Levels of E-commerce

Level 1: I-Commerce: Information commerceLevel 2: t-commerce: Transaction CommerceLevel 3: c-business c=collaborating, connecting

Types of E-commerce transations

The parties in E-commerce:– G (Government)– B (Business) – C (Consumer)

Main types of E-commerce transations

B2B (Business-to-Business)B2C (Business-to-ConsumerC2C (Consumer-to-Consumer)

The development of E-commerce in Viet

Overall situation: – E-commerce applications of business achieved good results.– E-commerce has grown in all localities of the country.

1

Nam – Online public services continue to be a positive development.– Online training has been formed and developed.

CHAPTER 2: E-COMMERCE BUSINESS MODELS E-commerce Business Models

Business model Set of planned activities designed to result in a profit in a marketplaceBusiness plan Describes a firm’s business modelE-commerce business model

Uses/leverages unique qualities of Internet and Web

Eight Key Elements of a Business Model

Value Proposition How does the product or service fulfill customer needs?E-commerce value propositions:

– Personalization/customization– Convenience– Price/No shipping cost– Quick delivery– Unparalleled Selection– Product/service quality

Revenue Model How will the company earn money Major types of revenue models:

Advertising revenue model- Facebook Subscription revenue model –Consumer Reports Transaction fee revenue model- ebay Sales revenue model – AmazonMP3 Affiliate revenue model – airlines/car rentals/hotels

Market Opportunity The intended Marketspace of the company Marketspace: Area of actual or potential commercial value in which

company intends to operate Realistic market opportunity: Defined by revenue potential in each

market niche in which company hopes to compete Market opportunity typically divided into smaller niches

Competitive Environment

Who else occupies your intended marketspace? Other companies selling similar products in the same marketspace Includes both direct and indirect competitors

Influenced by: Number and size of active competitors Each competitor’s market share Competitors’ profitability Competitors’ pricing

Competitive Advantage

The special advantages of a firm Superior product or cheaper product than competitors What makes a product superior?

Important concepts: Asymmetries exist when one competitor has more resources than the

others First-mover advantage, complementary resources Unfair competitive advantage results from factors that are hard to

duplicate or acquire (brands, natural resources, capital investments) Leverage using your vast resources to move in other markets –

leveraging a large customer base Perfect markets

Market Strategy How do you plan to promote your products or services to attract the target audience

Details how a company intends to enter market and attract customers Best business concepts will fail if not properly marketed to potential

customers.Organizational Development

The types of organizational structures within the firm necessary to carry out the business plan

2

Describes how firm will organize work Typically, divided into functional departments As company grows, hiring moves from generalists to specialists

Management Team “What kind of backgrounds should the company’s leaders have?” A strong management team:

Can make the business model work Can give credibility to outside investors Has market-specific knowledge Has experience in implementing business plans

Categorizing E-commerceBusiness Models

No one correct way (explained on upcoming slides) Text categorizes according to:

E-commerce sector (e.g., B2B) E-commerce technology (e.g., m-commerce)

Similar business models appear in more than one sector Some companies use multiple business models (e.g., eBay)

B2C Business Models

- E-tailer: Amazon.com, Walmart.com, Dell.com- Portal: Yahoo.com, msn.com, ZING.vn- Community Provider: Facebook.com, twitter.com, cyworld.vn- Content provider: CNN.com, vnexpress.net, bbc.com- Service provider: VisaNow.com, dropbox.com- Transaction broker: Hotels.com, monster.com, vietnamhotels.vn- Market creator: Priceline.com, ebay.com, vatgia.com

B2B Business Models

Net marketplaces E-distributor E-procurement Exchange (Alibaba.com) Industry consortium

Private industrial network Single firm Industry wide

Others EC Business Models

– Customer-to-business(C2B)– Business-to-business-to-consumer (B2B2C)– Customer-to-customer (C2C)– Business-to-employees (B2E)– Collaborative commerce (c-commerce)– E-government– M-commerce– F-commerce

CHAPTER 3: BUILDING E-COMMERCE BUSINESS PLAN

Analyzing the factors affecting the integration of e-commerce

Analysis environmental

The micro-environment: business areas, products, competitors, customers…The macro-environment : technology, economic factors, political and legal, cultural, social, geographic ...

The elements inside and outside the enterprise

Inside: organizational structure, human resources, products, culture within businesses ...Outside: pressure from buyers, suppliers, the role of government, other related organizations …

SWOT AnlysisBuilding e-commerce business plan

Identifying the business premises of the enterprise

– Business purposes: startup, business reforms under the e-commerce business model or builds more e-commerce model…

– Business objectives: the number of website visitors, market share, revenue ...

– Business areas, products: the group in line with the online business (products, services), specialized product or combination of products ...

– Markets and customers: domestic, international, target audience (age,

3

gender, occupation, income)– Business capabilities: human resources, organizational structure, financial

capabilities, IT infrastructure (Web server, sales software, support services software, security technology ...)

– Technology Solutions: hire external services or self-designed and managed ...

FORMING A BUSINESS PLANThe basic components and requirements of e-commerce business plan:

• Strategic objectives• Business models and revenue• Make a difference and brand positioning• Product development and market• Supply Chain Management• Implementation plan• The evaluation criteria• Risk assessment

Things to note in building business plan

• Using the advice of experts in e-commerce• Must have the participation of business leaders• Plans and results of research, market analysis, decision to buy / sell and

customer credibility• Consider cost, price issues• Considering the human resources, management and training• Focus on marketing

Assessment and evaluation:

Economic – Social perspective : contributing to GDP growth, the state budget revenues, create jobs, promote the development of other sectors ...

Investor perspective: safety for capital and financial efficiency, promote the brand, enhance corporate reputation ...

Identifying e-commerce business model

What is e-commerce business model?Eight key elements of an e-commerce business modelThe typical e-commerce business models

Implementing e-commerce activities

CHAPTER 4: E-COMMERCE INFRASTRUCTURE The type of computer networks

LAN o LAN (Local Area Network): – Is the network of computers are connected together within a small range.LAN

is commonly used within the office, computer room, school ...– Lets have more access on a broadband connection.– Administration is relatively simple.– LAN models:

Client/ Server model: One or more computers act as provide resources and services to the network (Server)The remaining computers will use the resources and services provided by Server

4

(Client)• Peer-to-peer model:

Is a group of computers connected to each other and have the authority handled equally well as requirements. Self each user will manage resources on your local computer without an administrator.

MAN MAN (Metropolitan Area Network): Connect LANs through various transmission media within a city or a nation.

WAN WAN (Wide Area Network): As networks connect computers on a large geographical area. WAN can be connected two or more LANs are far apart, can also be connected to the MAN network between cities, nations.

The concept of networking with organizations

Intranet Exclusive internal network of an organization, on which to run those applications only for the organization itself

Extranet Intranet + allow partners outside the organization access.THE INTERNET Internet IAP - Internet Access Provider

ISP (Internet Service Provider) ICP (Internet Content Provider) PSTN (Public Switched Telephone Network)

Internet – TCP/IP protocol

– TCP (Transmission Control Protocol): Establishes connections among sending and receiving Web computersHandles assembly of packets at point of transmission, and reassembly at receiving end

– IP (Internet Protocol): Provides the Internet’s addressing scheme and determine the route to transfer information from source to destination

IP addresses và Domain Names

IPv4:Is a 32-bit number - the only Internet address to determine the location of the device on the network.IP address form: X.X.X.X (X has a value from 0 to 255)Example: 192.168.1.65

IPv6:Is a 128-bit numbers - expressed as hexadecimal clusters separated by a ':'128-bit addresses, able to handle up to 1 quadrillion addresses (IPv4 can handle only 4 billion)Example: 2001:0db8:0000:0000:0000:ff00:0042:8329

Domain Names: Is the only name on the Internet to express their own name an organization or an individual. It is understandable that the name of the computer on the Each domain name corresponds to a numeric IP address to locate a computer on the networkClassify:Classification by level: the top-level domains (.com, .org, .vn), second-level domain names (.edu.vn, .abc.com), 3-level domains (.ctu.edu.vn, .thanhnien .com).Classified by sectors: commercial (.com), education (.edu.vn), government (.gov.vn), organizations (.org) .......Classification by geographic location: .vn Vietnam (.vn), United State (.us), Canada (.ca) ......

Cloud Computing Firms and individuals obtain computing power and software over Internet. Example: Google AppsFastest growing form of computingRadically reduces costs of:

– Building and operating Web sites– Infrastructure, IT support– Hardware, software

The Mobile Platform

In a few years, primary Internet access will be through:– Tablets

Supplementing PCs for mobile situations– Smartphones

Disruptive technology: Shift in processors, operating systems.33% of all cell phones

5

E-COMMERCE WEBSITE

Functions and classify

Function: Gallery: introduce the information, images, products and services of the business.Monitoring and management: goods, transaction information, prices, customers, orders, billing; delivery ...

Classify: Providing information WebsiteInteractive WebsiteTrading WebsiteCooperation Website

Construction Steps 1. Domain Registration and Hosting2. Create and manage content Website3. Website design4. Construction, testing and maintenance of Website5. Promote Website

CHAPTER 5: PAYMENT IN E-COMMERCE

Introduction Payment

Payment methods

Online payment: the whole process of payment will occur on the networkOffline Payment: traditional payment

Purchasing process with payment

Shopping Cart The software automatically recorded orders and calculate the amount that customers pay.Payment gateway

A software program transfer data transactions from the seller website to the payment credit card center.

6

Merchant account

Special account allows merchants to receive online payments from customers.Conditions:

– The compatibility of the account: the ability and time to receive money from accounts– Compatibility with Website: server, shopping cart software, payment services, and

Merchant account must be synchronized.– Discount rate: transaction fees, subscription fees, administrative fees

PSP – Payment Service Provider

A trusted third-party, providing connectivity services seller's e-commerce system with an appropriate payment bank.

PSP must be registered with the card organizations which they support.

E-commerce Payment Systems

Credit cards42% of online payments in 2013 (United States)

Debit cards29% online payments in 2013 (United States)

Limitations of online credit card paymentSecurity, merchant riskCostSocial equity

7

How an Online Credit Transaction Works

Alternative Online Payment Systems

Online stored value systems: Based on value stored in a consumer’s bank, checking, or credit card accountExample: PayPal

Other alternatives: Amazon PaymentsGoogle CheckoutBill Me LaterWUPay, Dwolla, Stripe

Mobile Payment Systems

Use of mobile phones as payment devices established in Europe, Japan, South KoreaNear field communication (NFC)

- Short-range (2”) wireless for sharing data between devicesExpanding in United States

- Google Wallet: Mobile app designed to work with NFC chips- PayPal- Square

Digital Cash and Virtual Currencies

Digital cash Based on algorithm that generates unique tokens that can be used in “real” worldExample: Bitcoin

Virtual currencies

Circulate within internal virtual worldExample: Linden Dollars in Second Life, Facebook Credits

Electronic Billing Presentment and Payment (EBPP)

Online payment systems for monthly bills50% of all bill paymentsTwo competing EBPP business models:

- Biller-direct (dominant model)- Consolidator or 3rd party like your bank

Both models are supported by EBPP infrastructure providersVấn đề xử lý thẻ tín dụng

Xử lý tức thời: bên bán xử lý ngay khi nhận được thông tin tín dụng phía người mua Rắc rối trong tranh chấp sau thanh toán, tốn kém trong việc mua thiết bị.Xử lý theo lô: xử lý theo định kỳ (theo thời gian, số lần giao dịch, số tiền)

RISKS AND MITIGATE RISKS IN PAYMENT

Risks of payment card

- Card issuing bank: the cardholder uses than quota allows, give your card to someone else to use abroad, report the loss but still use the card, using fake cards ...

- Bank payments: Errors in licensing, does not provide timely lists Bulletin ...- Card acceptance place: insufficient detection expired card, accept overpayment, fix the

amount on the bill ...- For cardholders: the loss, revealing the PIN ...

MITIGATE RISKS IN

- Use the address detection systems AVS (Address Verification System) to detect fraud in the transaction address (billing address).

8

PAYMENT - Use the test card on CVN (Card Verification Number) detection of fraudulent credit card numbers.

- Shipping address and billing address must match each other.- Beware of unusual orders.- Call the customer if any doubt.- Disclosure security system- Signed to 1 anti-fraud services

CHAPTER 6: E-COMMERCE SECURITYOverview of E-commerce security

E-commerce security

- The set of policy, processes, activities.- Ensure that the e-commerce transactions be implemented fully and promptly, to

ensure usability, benefit to all who are engaged in e-commerce.- Safety is always only approximate.

What needs protecting?

DataResourcesBrand

Risk classification in EC

The risk that accidents, incidents beyond the control of people and caused damage to the parties involved in the process of conducting transactions in e-commerceRisks are divided into 4 groups:

Risk data Risk technological Risk procedural and transaction processes of the organization Legal risks and technological standards

Dimensions of E-commerce security

Data Integrity Ensures that info sent and received has not been altered by unauthorized party

Authentication Ability to identify the person’s identity with whom you are dealing with over the internet

Nonrepudiation Ability to ensure that participants do not deny (repudiate)

Reliability/ privacy

Authorized to be seen by those who should view itAbility to control who sees your info

Availability E-commerce site functions as intended

Security Threats in E-commerce Environment

The common types of attacks

Direct attacksUsing malicious programs such as viruses, worms, macros, Trojans, adware, spyware ... taking advantage of an error or OS application programs to steal credit card numbers, passwords of customers.Example: Virus, Trojan, Worm, SpywareCheat: Do not admit, deny what was transactions.Phishing Attacks: A deceptive practices in order to steal information, transaction accounts customers or business, by sending false information, making the user misconceptions and provide the account information.Sniffer: Sniffer is a form of eavesdropping program, monitoring the movement of information across the network.

Email snooping Keylogger Data packet sniffing: Man In Middle

Deny of service attack: DoS, DDoS, DRDoS:DoS: Machine Attack transmitted deformed requirements, many requests makes

server refused to serveDDoS: is a type of DOS attack where multiple compromised systems, which are

often infected with a Trojan, are used to target a single system causing a Denial of Service (DoS) attack.

DRDoS: Distributed Reflection Denial of Service (DRDoS), a type of attempt to

9

disrupt a computer networkSocial network security issuesAttack from internal business:

- The threat stems from the members working in the business. Cause: subjective + objective

Hackers and other malicious programs

Source Routing: Hacker setup your computer into the router.ICMP flooding: send large volumes squeeze packet transmission rate.ICMP redirect: altering the routing table computer system.Segment IP: IP packet error segmented so that total> 65536 bytes.IP address spoofing: borrow the IP address of the other computer.

Classification attacker

Passers: whether to break into network systems is one form of entertainment.Vandals: intentional sabotage the system.Who scored: want to assert themselves through these new types of attacks, the number of systems have been infiltrated.Espionage: stealing data to serve for the purpose of sale or exchange.

LIMIT RISKS IN E-COMMERCE

Encryption: Encryption: altering plain text so that it cannot be read by anyone other than the sender & receiver

- Symmetric key both sender and receiver use the same key to encrypt and decrypt the message. The key is sent over a secure line or exchanged in person.

- Public Key (Asymmetric key) there are two mathematically related keys, a public key and private key. Private key key secretly by owner and public key disseminated to the public. Both keys are used to encrypt and decrypt the message.

Digital signature - Digital signature is a signed cipher text sent over the internet. A valid digital signature gives a recipient reason to believe that the message was created by a known sender, that the sender cannot deny having sent the message (authentication and non-repudiation), and that the message was not altered in transit (integrity).

Securing channels of communication

SSL (Secure Socket Layer): a secure negotiated session is a client server session in which the URL of the requested doc, its contents, and cookies are encrypted through a series of communication handshakes between computers. A unique symmetric encryption session key is chosen for each sessionDigital certificate (DC) issues by trusted 3rd party known as certification authority that contains (the subject name, public key, digital cert serial #, exp date, issuance date and digital signature)

- There are various types of certs (personal, institutional, web server, software publ, and Cas)

- Verisign, Post office, Fed Reserve issue certsFirewalls are hard/software that filters comm packets and prevent unauthorized accessProxy servers are software servers handle comm by acting as a spokesperson and body guard for the organization. To local computers, proxy servers are known as a gateway, but to external servers known as mail server. Proxy servers sit betw users and back end systems. They may be used to restrict access by employees.

10

Protecting networks and customer computers:

The control of the operating system: provide a name and password when you want to access the system.Install anti-virus software: simple methods and least costly.Intrusion detection system: detection and identification tools that hackers commonly use, detect suspicious activity.

CHAPTER 7: E-MARKETING

The concept and benefits of e-Marketing

Concept: Electronic marketing is understood as marketing activities are conducted via and telecommunication networks.

Benefits: Global marketingShorten the distanceSave timeCost savings

Marketing E- Marketing

Using mass media

Using the Internet and digital devices

Limited space Unlimited space

Take a long time Respond immediately

Do not choose a specific audience

Direct access to a specific audience

High cost Low cost and can control cost

Difficult to store information

Easy to store information

4P IN E-MARKETING

Product:- Creating products / services such as digital products, online services.- Adding value to the product / service traditions such as product

differentiation, online auctions, online customer support…Price:

- Customers get the information better.- Cut costs, the new transaction forms change price policy.- Diverse and modern forms of payment.

Place: - Improved distribution system, coordination between the members of the

distribution channels through the Internet, Web ...- Save time, costs for delivering digital products.

Promotion- Advertising: Logo, website, banner ads, e-zine, newsletter - Sales Promotion: Discounts, gifts, cross-selling products with discounts,

bundled services …- Public Relations: activities to crowd or protected images, the product of the

company before the community. Workshops (over the network), sponsored electronic newsletter, the

agent program ...

11

- Direct Marketing: Website, Email, Fax…- Personal Selling: The auto answer email systems, chat room, FAQ…

Building e-Marketing plan

1. Situation analysis 2. E-marketing strategy planning 3. Objectives4. E-marketing strategy5. Implementation plan6. Budget7. Evaluation plan

e-Marketing Methods

Search engine marketing

The search engine looking for the Web site according to the topics identified.- SEM (Search Engine Marketing) - SEO (Search Engine Optimization)- PPC (Pay Per Click)

Social Media New media environment based on Web 2.0 support collaboration, post content, share connect people together.Example: Forum, Blog, Flickr, Youtube, Social network (facebook, myspace), Wikipedia…

Email Marketing 1. Email advertising: newsletters, ad messages, introduce products / services to entice customers

2. Email transaction: order confirmation, payment, shipping notices ...3. Email customer retention: keeping in touch with customers, survey after

purchase, offer promotions and price cuts …Pros: the ability to navigate and highly customizable, cost-effective, measurable.Cons: the number of businesses and individuals that use email marketing is increasing, being marked as spam, requiring ingenuity and differences with opponents

Remarketing

Online advertising In this method, companies buy advertising space on the site are owned by other 12

companies in order to attract consumers.Such as:Banner advert; Pop - ups and Pop – unders; Wallpaper advert; Floating advert; In text advert; Sponsor a Website or an e-newsletter

Affiliate Marketing Build agents or online sales association based on a percentage agreed upon commission.

Pros: costs are paid according to effective marketing, sales and brand development to grow the same time, there are very few barriers to entry for owners and agents.

Cons: lose control of your brand, very few regulations or contracts.PR online A maximum of benefit mentioned image, brand, product or company's website on third

party websites that target customers can visit.• Communication with the online media (journalism)• Exchanging links and editing (anchor text)• Blogs, forums and RSS (Really Simple Syndication)• Create rumors (buzz) Viral marketing• Management "reputation" online

Forms of fee Flat Rate (mức phí cố định cho một thời gian nhất định)CPM (Cost Per Thousand Impressions - tính phí theo số lượt quảng cáo được xem) CPC (Cost Per Click - trả tiền theo số click)CPA (Cost Per Action hay còn gọi là Pay Per Lead, tức trả tiền theo hành động người dùng, như mua hàng, đăng ký làm thành viên hoặc download phần mềm). 

Notes in e-Marketing

Implementation principles of E-marketing Message content Professionalism Frequency Marketing Cost and efficiency

Things to avoid in the implementation e-Marketing:• Using free or cheaply Web Hosting service.• Web page contains too many graphics, java, music• No regular keep in touch customers and are not interested in

feedback from customers.• Not exploited effectively use the tools of the Internet and other

support (eg. managing email systems ineffective).• Underplayed the role of Marketing or Strategic Marketing

inappropriate.

CHAPTER 8: Ethical and Legal in E-commerce

Ethical Issues in E-Commerce

Privacy and protection of privacy

- Privacy is a fundamental right of individuals to be free from supervision or intervention from individuals or organizations, including government.

- VN 2014 80% now have policies to protect personal information (73% in 2013)- Personal information may be collected by many different forms!- 5 business principles to follow to ensure privacy for ustomers

Prior Notice Consent Access Integrity / safety Coercive / compensation

Intellectual property and copyright

Intellectual property is intangible assets by an individual or company created and protected as copyright, trade secret or patent

1. Copyright is a statutory fixed contract allows the creation of intellectual property ownership in 28 years.

2. Trade secrets as intellectual achievements such as the business plan, the company's secrets.

3. The patent is a document that allows the holder to legally invention has the monopoly for 17 years.

Fraud and protect The common form of fraud in e-commerce:13

Consumers - Seller 1. Online auction cheat2. Stocks on the internet deception3. The other type of financial deception: business opportunities ghost, fake investment

opportunities, raising capital ...4. The other type of deception in e-commerce: goods and services received poor

quality, late, to pay the amount the seller to bearAdvice for consumers:

1. Brand reputation, the right website2. Check the address, contact information if website stranger3. Track information on online.gov.vn seller4. Survey, quality testing of service5. Compare prices of the same type6. Imagine the scenario occurs7. Rights of the buyer

Seller prevent the following issues:1. Refuse orders2. Customers resell the software or copyrighted digital products3. Pay less than the value provided4. Abusing names

E-commerce Legally in Viet Nam

Model Law on E-commerce UNCITRAL

1996: United Nations Commission on International Trade Law (UNCITRAL) has prepared a Model Law on E-transactionsForming the regulations form for the recognition of the legal validity of data messagesModel Law can be used as a reference for countries in the process of building its e-commerce law3 factors to ensure trust and transparency:

- Clarity: website sellers must have the terms to buy, sell clear- Reliability:

• Information published: truthful news• Electronic transactions: safety technology• operating system: do not cause errors• authentication problems: such as electronic signatures

- Confidentiality and privacy: must be respected and secure information important as credit cards, email, phone, customer ...

Overview of the legal basis for e-commerce in Vietnam

– Before 2000, the term e-commerce is still new in VN– 1/2002, the Ministry of Trade is responsible for building e-commerce Ordinance to

establish a comprehensive legal basis for e-commerce– 09/15/2005 Prime Minister signed the "decision approving the Master Plan for e-

commerce development for 2006-2010" (222/2005 / QD-TTg)– "Electronic Transactions Law" by Eleventh National Assembly, 8th session on

29/11/2005– 09.06.2006 The Prime Minister issued the "Decree on e-commerce" (57/2006 / ND-

CP)– And decrees and circulars instructed otherwise, ...

14

Introduction E-Transactions Law

The nature of the law on e-commerce is ... Recognition of electronic transactions exist legally as traditional

transactions (written)The effect of a law on e-commerce

Create confidence for the user -> encourage them to participate in e-commerceLegal basis resolve disputes

29/11/2005 laws were passed, there are 8 chapters and 54 articles.Main content:

The legal validity of data messages; The legal validity of electronic signatures and electronic authentication

market; Electronic contracts; E-transactions of state agencies; Confidential, safety and security;

Law recognizes the legal validity of data messages Recognition of electronic signatures have legal validity as a handwritten

signature. To ensure safety for electronic signatures, responsibilities, obligations of

electronic signatures, the recipientElectronic signature authentication (S):

Electronic signature certification service activities The content of the e-certificate Rights and obligations of organizations and service providers of electronic

signature certification The conditions for service providers of electronic signature certification

The documents guiding the implementation of laws

Decree on Electronic Commerce (52/2013 / ND-CP)- Was issued on 16.5.2013- Specific regulations on the operation of e-commerce as well as the management of

the state in this area,• The prohibited acts in e-commerce• The procedures for registration and notification when setting

sales website or e-commerce services organizations, traders and individuals

• Responsibilities of organizations, merchants and individuals engaged in e-commerce

• E-commerce portal www.online.gov.vnDecree on sanctioning of administrative violations in the field of trade (185/2013 / ND-CP)

- Was issued on 15.11.2013- Specific regulations on the handling of administrative sanctions for violations in the

field of e-commerce under Decree 52/2013 from Article 81 to 85• Doubling the fine level organizations and traders

15

• A fine from 5-30 million: Set up e-commerce websites do not announced

• A fine of between 40-50 million: fraud actions on e-commerce websites

• Additional: 6-12 months suspended operations, withdraw the domain name ".vn"

Joint Circular No. 10/2012/TTLT-BCA-BQP-BTP-BTT&TT-VKSNDTC-TANDTC– Guidance applicable regulations of the Criminal Code of some criminals in the field

of information technology and telecommunications– The instructions on the order, procedures and specify the level of damages

constitute penalty range helps solve the most basic problems so far in dealing with crimes of a complex field and crime nontraditional as e-commerce

Electronic Contract

Electronic contract is a contract is set up as a data message under the provisions of the Law of electronic transactions. Has the following characteristics:

Shown with: Data message Electronic devices: create, send and archive Signed wide range Technical complexity Governing Law isn’t systematic and detailed

CHAPTER 9: Building an E-commerce Presence: Web Sites, Mobile Sites, and Apps E-commerce Presence Map

Building an E-commerce Site: A Systematic Approach

Most important management challenges:- Developing a clear understanding of business objectives- Knowing how to choose the right technology to achieve those objectives

Pieces of the Site-Building Puzzle

Main areas where you will need to make decisions:- Human resources and organizational capabilities

Creating team with skill set needed to build and manage a successful site- Hardware/software- Telecommunications- Site design

The Systems Development Life Cycle

Methodology for understanding business objectives of a system and designing an appropriate solutionFive major steps:

• Systems analysis/planning• Systems design• Building the system• Testing• Implementation

16

System Analysis/Planning

Business objectives: - List of capabilities you want your site to have

System functionalities: - List of information system capabilities needed to achieve business objectives

Information requirements: - Information elements the system must produce in order to achieve business objectives

Systems Design: Hardware and Software Platforms

System design specification: - Description of main components of a system and their relationship to one another

Two components of system design:- Logical design: Data flow diagrams, processing functions, databases- Physical design: Specifies actual physical, software components, models, and so on

Build/Host Your Own vs. Outsourcing

Outsourcing: Hiring vendors to provide services involved in building site Build own Build your own requires team with diverse skill set; choice of software tools; both risks and possible benefitsHost own Hosting: Hosting company responsible for ensuring site is accessible 24/7, for monthly fee

- Co-location: Firm purchases or leases Web server (with control over its operation), but server is located at vendor’s facility

Testing, Implementation, and Maintenance

Testing• Unit testing• System testing• Acceptance testing

Implementation and maintenance: • Maintenance is ongoing• Maintenance costs: Similar to development costs • Benchmarking

Factors in Web Site Optimization

Simple vs. Multi-tieredWeb Site Architecture

System architecture - Arrangement of software, machinery, and tasks in an information system needed to achieve a

specific functionalityTwo-tier

- Web server and database serverMulti-tier

- Web application servers- Backend, legacy databases

Web Server Software Apache• Leading Web server software (52% of market)• Works with UNIX, Linux operating systems

Microsoft’s Internet Information Server (IIS)

17

• Second major Web server software (20% of market)• Windows-based

Site Management Tools

Basic tools- Included in all Web servers

• Verify that links on pages are still valid • Identify orphan files

Third-party software for advanced management• Monitor customer purchases, marketing campaign effectiveness, and so on• WebTrends Analytics 10, Google Analytics

Application Servers Web application servers: – Provide specific business functionality required for a Web site– Type of middleware

Isolate business applications from Web servers and databases on the back end– Single-function applications being replaced by integrated software tools that combine all

functionality needed for e-commerce siteE-commerce Merchant Server Software

Provides basic functionality for online sales- Online catalog

• List of products available on Web site- Shopping cart

• Allows shoppers to set aside, review, edit selections, and then make purchase- Credit card processing

• Typically works in conjunction with shopping cart• Verifies card and puts through credit to company’s account at checkout

Web Services and Open-Source Options

Options for small firms- Hosted e-commerce sites

• Offer site building tools and templates• Example: Yahoo’s Merchant Solutions

- Open-source merchant server software• Enables you to build truly custom sites• Requires programmer with expertise, time

The Hardware Platform

Hardware platform: - Underlying computing equipment needed for

e-commerce functionalityObjective:

- Enough platform capacity to meet peak demand without wasting moneyImportant to understand the factors that affect speed, capacity, and scalability of a site

Personalization Tools Personalization- Ability to treat people based on personal qualities and prior history with site

Customization- Ability to change the product to better fit the needs of the customer

Cookies - Primary method to achieve personalization

Developing a Mobile Web Site and Building Mobile Applications

Three types of m-commerce software- Mobile Web site

• Responsive Web design- Mobile Web app built for a mobile web browser of a smart device (phone, tablet)- Native app designed specifically for mobile device

Planning and building mobile presence- Use systems analysis/design to identify unique and specific business objectives

Developing a Mobile Web Presence

Design considerations- Platform constraints: Smartphone/tablet

Performance and cost- Mobile Web site: Least expensive- Mobile app: Can utilize browser API- Native app: Most expensive; requires more programming

18