Electronic & Mobile Commerce

Advancement in Technology

E-commerce: An Introduction

E-commerce provides global reach which is its greatest advantage. There is no restriction by geographical boundaries what so ever. Time restrictions too can be overcome with the help of e-commerce. Hence it gives people an opportunity to look for the best deals around the globe at their convenience. E Commerce reduces the costs of a business by reducing the costs associated with marketing, customer care and inventory management.This Reduction in cost means more profit and better customer care.

How Ecommerce Websites Work

Most ecommerce websites consist of two halves the public side and the admin side. The public side is what your customers see and where they can view and purchase your products. The admin side is only seen by you, the store owner. This is where you check your orders, add or remove products, change prices etc. A user name and password is required to access the admin side of your ecommerce shop and only you know what these are, so only you can make any changes or see customer and order information.

How Ecommerce Works For the Customers

The customers will go to the website by either typing in the website address or searching for products on Google and other search engines. Once on the website they are able to browse through the products by viewing pictures ,details etc. When the Customers see a product they want to purchase they add it to their basket usually done by clicking a button next to the product and once they have chosen everything they want, they pay for their products by using a credit or debit card. Some of the main benefits of ecommerce for your customers are: The customers can shop from the comfort of their own home 24 hours a day. The customers can view all the products, pictures and details in their own time

Threats to E-Commerce

Threats to e-commerce systems can be either malicious or accidental. The procedures and controls must be put in place to protect website from both.

Threats

Malicious

Accidental

Money Theft

Identity Theft

Threats to the System

Human Errors

Lack of Proper Knowledge

Lack of Proper Infrastructure

Malicious Threats

Types of Threats

Hackers attempting to penetrate a system to read or alter sensitive data. Burglars stealing a server or laptop that has unprotected sensitive data on its disk Imposters posing as legitimate users and even creating a website similar to yours Authorised users downloading a webpage or receiving an email with hidden active content that attacks your systems or sends sensitive information to unauthorised people Human Errors Lack of knowledge Lack of proper infrastructure

Accidental Threats

Solutions to threats
From A Wireless Perspective: Authentication-The Use of Secure Sockets Layer Encryption-The Use of Secure Shell Tunneling-The Use of Virtual Private Networks From A Hard Wired Perspective: The Use of Network Intrusion Devices The Use of Firewalls The Use of Routers

Mobile Commerce: Overview

Mobile commerce (M-commerce) is a type of ecommerce conducted through mobile devices such as mobile phones, personal digital assistants (PDAs,Tablets) and other devices with a wireless connection. It is quite different from traditional of Ecommerce.

Mobile commerce from the Customers point of view

The customer wants to access information, goods and services any time and in any place on his mobile device. He can use his mobile device to purchase tickets for events or public transport, pay for parking, download content and even order books and CDs. He should be offered appropriate payment methods. They can range from secure mobile micropayment to service subscriptions.

Mobile commerce from the Providers point of view

The future development of the mobile telecommunication sector is heading more and more towards value-added services. Analysts forecast that soon half of mobile operators revenue will be earned through mobile commerce.

Consequently operators as well as third party providers will focus on value-added-services. To enable mobile services, providers with expertise on different sectors will have to cooperate.
Innovative service scenarios will be needed that meet the customers expectations and business models that satisfy all partners involved.

M-Commerce Terminology

Generations 1G: 1979-1992 wireless technology 2G: current wireless technology; mainly accommodates text 2.5G: interim technology accommodates graphics 3G: 3rd generation technology (2001-2005) supports rich media (video clips) 4G: will provide faster multimedia display (2006-2010)

Terminology and Standards

GPS: Satellite-based Global Positioning System PDA: Personal Digital Assistanthandheld wireless computer SMS: Short Message Service EMS: Enhanced Messaging Service MMS: Multimedia Messaging Service WAP: Wireless Application Protocol SmartphonesInternet-enabled cell phones with attached applications

Attributes of M-Commerce and Its Economic Advantages

Mobilityusers carry cell phones or other mobile devices Broad reachpeople can be reached at any time Ubiquityeasier information access in real-time Conveniencedevices that store data and have Internet, intranet, extranet connections Instant connectivityeasy and quick connection to Internet, intranets, other mobile devices, databases Personalizationpreparation of information for individual consumers Localization of products and servicesknowing where the user is located at any given time and match service to them

Mobile Service Applications

Financial Services. Entertainment. Shopping.

Information Services.
Payment. Advertising. And more ...

Early content and applications have all been geared around information delivery but as time moves on the accent will be on revenue generation.
Entertainment Music Games Graphics Video Communications Short Messaging Multimedia Messaging Unified Messaging e-mail Chatrooms Video - conferencing

M- commerce
Transactions Banking Broking Shopping Auctions Betting Booking & reservations Mobile wallet Mobile purse Information News City guides Directory Services Maps Traffic and weather Corporate information Market data

Classes of M-Commerce Applications

Mobile Payment for M-Commerce

Mobile Payment can be offered as a stand-alone service.

Mobile Payment could also be an important enabling service for other m-commerce services (e.g. mobile ticketing, shopping, gambling) : It could improve user acceptance by making the services more secure and user-friendly. In many cases offering mobile payment methods is the only chance the service providers have to gain revenue from an m-commerce service.

Mobile Payment
Customer requirements: a larger selection of merchants with whom they can trade a more consistent payment interface when making the purchase with multiple payment schemes, like: Credit Card payment Bank Account/Debit Card Payment Merchant benefits: brands to offer a wider variety of payment Easy-to-use payment interface development Bank and financial institution benefits to offer a consistent payment interface to consumer and merchants

Payment via Internet Payment Provider

WAP GW/Proxy
Browsing (negotiation)
Merchant

MeP
User
GSM Security SMSC
SSL tunnel

IPP

Mobile Wallet CC/Bank

Payment via integrated Payment Server

WAP GW/Proxy
Browsing (negotiation)

Mobile Commerce Server

User
GSM Security
SMSC
SSL tunnel ISO8583 Based

Merchant

CP
CC/Bank

VPP IF Mobile Wallet

Voice PrePaid

Usability Problem small size of mobile devices (screens, keyboards, etc) limited storage capacity of devices hard to browse sites Technical Limitations lack of a standardized security protocol insufficient bandwidth 3G liscensesTechnical Limitations transmission and power consumption limitations poor reception in tunnels and certain buildings multipath interference, weather, and terrain problems and distance-limited connections WAP Limitations Speed Cost Accessibility

Limitations of M-Commerce

Platform Risks

Without a secure OS, achieving security on mobile devices is almost impossible Learned lessons:

Memory protection of processes Protected kernel rings File access control Authentication of principles to resources Differentiated user and process privileges Sandboxes for untrusted code Biometric authentication

New Security Risks in M-Commerce

Abuse of cooperative nature of ad-hoc networks
An adversary that compromises one node can disseminate false routing information.

Malicious domains
A single malicious domain can compromise devices by downloading malicious code

Roaming
Users roam among non-trustworthy domains

New Security Risks

Launching attacks from mobile devices
With mobility, it is difficult to identify attackers

Loss or theft of device

More private information than desktop computers Security keys might have been saved on the device Access to corporate systems

Bluetooth provides security at the lower layers only: a stolen device can still be trusted

New Privacy Risks

Monitoring users private information
Offline telemarketing Who is going to read the legal jargon Value added services based on location awareness (LocationBased Services)

Concluion

Mobile commerce (m-commerce) is a natural extension of electronic commerce (e-Commerce) and represents a new channel through which users can interact wirelessly with other people or businesses. This provides m-Consumers with significant convenience and flexibility through an anytime/anywhere mode of interaction. Businesses hoping to take advantage of this potentially lucrative market must strive to fully understand the concerns of the m-Consumer regarding privacy and security, so as not to repeat the same mistakes that led to the slow down in e-Commerce success. Privacy, security, and legislation combined with education can facilitate strong privacy protection practices, maintaining the consumers interest in mind while benefiting all m-Commerce market players.