السبت، 17 مايو 2014

Ethics and Privacy


Firstly, Ethical Issues:

n  Ethics

deals with what is considered to be right and wrong

Deciding what is right or wrong is not always easy or clear cut

n  Code of Ethics

A collection of principles that are intended to guide decision making by members of an organization.


Ethical Frameworks

n  Utilitarian Approach

An ethical action is the one that provides the most good or does the least harm

n  Rights Approach

An ethical action is the one that best protects and respects the moral rights of affected people

n  Moral Rights:

ü  The right to make your own choices

ü  The right to be told the truth

ü  The right of privacy

n  Fairness Approach

Ethical actions treat all human beings equally, or, if unequally, then fairly , based on some defensible standard.

n  Common good Approach

Highlights the interlocking relationships that underlie all societies.

This approach argues that respect and compassion for all is the basis for ethical actions

Fundamental Tenets of Ethics

n  Responsibility

means that you accept the consequences of your decisions and actions.

n  Accountability

a determination of who is responsible for actions that were taken

n  Liability

a legal concept meaning that individuals have the right to recover the damages done to them by other individuals, organizations, or systems

Consider the following decisions:

n  Should organizations monitor employees’ Web surfing and E-mail?

n  Should organizations sell customers’ information to other companies?

n  Should organizations audit employees’ computers for unauthorized software or illegal downloaded music or video files?

Second, Privacy:

1. Privacy Issues

Privacy is the right to be left alone and to be free of unreasonable personal intrusions.

Information Privacy: the right to determine when, and to what extent, information about yourself  can be gathered and/or communicated

The right of privacy is not absolute !.       

Ø  Your privacy must be balanced against the needs of society.

Ø  The public’s right to know is superior to the individual’s right

     of privacy.

2. Accuracy Issues

involve the authenticity, fidelity and accuracy of information that is collected and processed

3. Property Issues

involve the ownership and value of information.

4. Accessibility Issues

revolve around who should have access to information and whether they should have to pay for this access.

Threats to Privacy

 

n  Data aggregators

companies that collect public data (e.g., real estate records, telephone numbers) and nonpublic data (e.g., social security numbers, financial data, police records, motor vehicle records) and integrate them to produce digital dossiers

n  Digital dossiers

an electronic description of you and your habits

n  Profiling

use of computers to combine data from multiple sources and create digital dossiers of detailed information on individuals

n  NORA (nonobvious relationship awareness)

 new data analysis technique for even more powerful profiling
 

n  Electronic Surveillance

The tracking of people‘s activities ,online or offline,

with the aid of computers.

Ø  Cookies

Ø  URL filtering

  

Protecting Privacy

n  Personal Information in Databases

Information about individuals is being kept in many databases:

Ø  Banks

Ø  Utility companies

Ø  Government agencies

Ø  Credit reporting companies

  • Social Networking Sites


n  Privacy Codes and Policies

An organization’s guidelines with respect to protecting the privacy of customers, clients, and employees.

n  Opt-out Model

informed consent permits the company to collect personal information until the customer specifically requests that the data not be collected.

n  Opt-in Model

informed consent means that organizations are prohibited from collecting any personal information unless the customer specifically authorizes it.

 

الأحد، 11 مايو 2014

E-Commerce: Applications and Issues


First, Overview of E-Business and E-Commerce:

v  The dot-com era

v   Over 1.9 billion people are now connected to the Internet

v   More than 130 million people are buying online

v   E-commerce began in 1995

v   Marketplace →  Marketplace

E-Commerce (EC): describes the process of buying, selling, transferring or exchanging of products, services or information via computer networks, including the Internet.

E-business: is a broader definition of EC, including

ü   buying and selling of goods and services

ü   servicing customers

ü   collaborating with partners

ü   conducting e-learning

ü   conducting electronic transactions within an organization.

 

·         Pure versus Partial EC depends on the degree of digitization involved:

  • The product can be physical or digital.
  • The process can be physical or digital.
  • The delivery agent can be physical or digital

·         Brick-and-mortar: purely physical organizations

·         Click-and-mortar: organizations are those that conduct some EC activities, yet their business is primarily done in the physical world [multichannneling]

·         Pure Play: organizations that are engaged only in EC

Types of E-Commerce:

v  Business-to-Consumer (B2C): the sellers are organizations and the buyers are individuals

v  Business-to-Business (B2B): both the sellers and buyers are business organizations

v  Consumer-to-Consumer (C2C): both the sellers and buyers are individuals

v  Business-to-Employee (B2E): An organization uses e-commerce internally to provide information and services to its employees.

v  E-Government (E-Gov.): the use of Internet technology to deliver information about public services to citizens (Government-to-Citizen [G2C]), business partners and suppliers (called government-to-business [G2B]) and between governments [G2G].

ü  Mobile Commerce (m-commerce): e-commerce that is conducted using a mobile phone

E-Commerce Business Models :

ü  Online Direct Marketing: manufacturers sell directly to

o   customers

ü  Electronic Tendering System: businesses (or governments) request quotation from suppliers [uses B2B or G2B]   -[Example:  e-tendering The Tender Board ]

ü  E-auction – an auction which is held over the Internet

o                             www.ebay.com

ü  Forward Auction: the highest bidder wins the auction

ü  Reverse Auction: the lowest bidder wins the auction

 

ü  Name-your-own-price: customers decide how much they want to pay  www.priceline.com

 

ü  Find-the-best-price: customers specify a need and an intermediary compares providers and shows the lowest price 

ü  Viral marketing: receivers send information about your product to their friends.

ü   Group purchasing: small buyers aggregate demand to get a large volume discount [E-Coops]

ü  Product customization: customers use the Internet to self-configure products or services. Sellers then price them and fulfill them quickly.  



ü  Deep discounters: company offers deep price discounts. Appeals to customers who consider only price in their purchasing decisions

ü  Membership: only members can use the services provided, including access to certain information, conducting trade, etc.

Benefits of E-Commerce
 

·         Benefits to organizations

o   Makes national and international markets more accessible

o   Lowering costs of processing, distributing, and retrieving information

·         Benefits to customers

o   Access a vast number of products and services around the clock (24/7/365)

·         Benefits to Society

o   Ability to easily and conveniently deliver information, services and products to people in cities, rural areas and developing countries

Limitations of E-Commerce

v  Technological Limitations

o   Lack of universally accepted security standards

o   Insufficient telecommunications bandwidth

o   Expensive accessibility

v  Non-technological Limitations

o   Perception that EC is unsecure

o   Unresolved legal issues

o   Lacks a critical mass of sellers and buyers

Second, Business-to-Consumer B2C

Electronic retailing (E-tailing): the direct sale of products and services through the Internet

 E-marketplace: a central, virtual market space on the Web where many buyers and sellers can conduct E-commerce and E-Business activities

E-storefront: a Web site that represent a single store


E-mall/ Cybermall: a collection of individual shops under one Internet address  http://www.e-mall.com.sa/

- Referral Mall     www.bing.com/shopping

 

Online Service Industries:

A key issue is disintermediation


Cyberbanking: involves conducting banking activities from home, a place of business or on the road instead of at a physical bank location.
E-Bank / virtual Bank/ Cyber Bank: a bank that is dedicated only to Internet transactions
Online job market :The internet offers promising new environment for job seekers and for companies searching for hard-to-find employees.
Travel services :The internet is an ideal place to plan, explore and arrange almost any trip economically .

 

Issues in E-Tailing:
Channel conflict: occurs when manufacturers disintermediate their channel partners such as distributors, retailers, dealers, and sales representatives, by selling their products directly to consumers, usually over the Internet through e-commerce.
[Ford allows customers to configure a car online but requires them to pick it up from a dealer, where they arrange financing, warranties and services]
Multichanneling: is a process in which a company integrates its offline and online channels.
Order fulfillment: finding the product to be shipped; packaging the product; arrange for speedy delivery to the customer; and handle the return of unwanted or defective products.

Third,  Business-to-Business (B2B)

In B2B e-commerce, the buyers and sellers are organizations

There are several business models for B2B applications:

  • B2B Sell-Side Marketplace
  • B2B Buy-Side Marketplace
  • Electronic Exchanges
  • In the sell-side marketplace, organizations sell their products or services to other organizations electronically from their own Web site and/or from a third-party Web site.

 

This model is similar to the B2C model in which the buyer comes to the seller’s site, views catalogs, and places an order.  In the B2B sell-side marketplace, the buyers are organizations.

  • The buy-side marketplace is a model in which organizations buy needed products and services from other organizations electronically.

v  Exchanges independently own by a third party and connect many buyers and many sellers

  • Vertical Exchanges: connects buyers and sellers in a given industry


  • Horizontal Exchanges: connects buyers and sellers across many industries, and are used mainly for MRO materials


  • Functional Exchanges: needed services

such as temporary help or extra office

space are traded on an “as-needed” basis


Fourth, Electronic Payments

n  Implementing EC typically requires E-payment  

n  E-payment systems enable you to pay for goods and services electronically.

E-check: encrypted check with digital signature that is similar to a paper check, and is used mostly in B2B.

E-credit card: allows customers to charge online payments to their credit card account, and is used mostly in B2C.
 
Fifth, Ethical and Legal Issues:

v  Privacy: ecommerce provides opportunities for businesses to track online consumers using cookies or special spyware

v  Cybersquatting refers to the practice of registering domain names solely for the purpose of selling them later at a higher price.


The original owner of www.tom.com received $8 million for the name

v  Taxes and other Fees: when and where (and in some cases whether) electronic sellers should pay taxes

v  Copyright: protecting intellectual property in e-commerce and enforcing copyright laws is extremely difficult