Chapter 8-- E-Commerce and Web 2.0

E-commerce is the buying and selling of goods and services over public and private computer networks.
Merchant companies take title to the goods they sell. They buy goods and resell the,.
Non-merchant companies arrange for the purchase and sale of goods without ever owning or taking title to those goods.
Business-to-consumer e-commerce(B2C) concerns sales between supplier and a retail customer(the consumer).
Business-to-business e-commerce(B2B)- refers to sales between companies.
Business-to government e-commerce(B2G) refers to sales between companies and governmental organizations.
E-commerce auctions match buyers and sellers by using an e-commerce version of a standard auction.
Clearinghouses- Provides goods and services at a stated price and arrange for the delivery of the goods, but they never take title.
Electronic exchange- matches buyers and sellers; the business process is similar to that of a stock exchange.
Disintermediation-is the elimination of middle layers of distributors and suppliers.
Price Elasticity measures the amount that demand rises or falls with changes in price.
Companies need to consider the following economic factors:
1. Channel Conflict
2.Price Conflict
3.Logistics expense
4. Customer-Service expense
Hypertext transfer protocol(HTTP)-communication between the user and server computers
A webpage is a document coded in one of the standard page markup languages, that is transmitted using HTTP.
Web servers- are programs that run on a server tier computer and that manage Http traffic by sending and receiving web pages to and from clients.
A browser is a computer program on the client computer that processes web pages.
A commerce server is an application program that runs on a server tier computer.
Hypertext Markup Language(HTML)- is the most common language for defining the structure and layout of web pages.
An HTML tag is a notation used to define a data element for display or other purposes.
Hyperlinks are pointers to other web pages.
Attribute- is a variable used to provide properties about a tag.
A supply chain is a network of organizations and facilities that transforms raw materials into products delivered to customers.
Supply chain profitability is the difference between the sum of the revenue generated by the supply chain and the sum of the costs that all organizations in the supply chain incur to obtain that revenue.
Bullwhip effect is a phenomenon in which the variability in the size and timing of order increases at each stage up the supply chain,from customer to supplier.
Web 2.0-refers to a loose grouping of capabilities,technologies,business models, and philosophies.
Beta program- is a pre-lease version of software that is used for testing;it becomes obsolete when the final version is released.
In a social networking group is an association of SN members related to a particular topic,event,activity, or other collective interest.
A social networking application-is a computer program that interacts with and processes information in a social network.
Crowdsourcing- is the process by which organizations involve their users in the design and marketing of their products.

Chapter 7--Business Process Management

Business Process Management(BPM) - systematic process of creating,assessing,and altering business processes.
As-is Model- documents the current situation and then change that model to make adjustments necessary to solve process problems.
Functional Processes-involve activities with a single department or function
Islands of automation- work in isolation from one another.
Cross-functional processes- involve activities among several or even many,business departments.
Object Management Group(OMG)- created a standard set of terms and graphical notations for documenting business processes.
Process designers can increase the performance of a business process in three fundamental ways:
1. they can add or remove resources to a given process without changing.
2. designers can change the structure of a process without changing resource allocations
3. Designers can do both.
A functional application is a computer program that supports or possibly automates the major activities in a functional process.
Operations applications are especially prominent for non-manufacturers such as distributors.wholesalers, and retailers.
Order-entry application obtains customer contact and shipping data,verifies customer credit,validates payment method, and enter the order into a queue for processing.
Order-management applications track the order through the fulfillment process,arrange for and schedule shipping,and process expectations.
Inventory applications support inventory control and inventory management.
Manufacturing planning applications help businesses allocate inventory and equipment to manufacturing processes.
A bill of materials(BOM) is a list of the materials that comprise a product.
Materials requirements planning- an application that plans the need for materials and inventories of materials used in the manufacturing process.
Manufacturing resource planning- a follow-up to MRP that includes the planning of materials,personnel,and machinery.
A customer relationship management is a cross-functional application that tracks all interactions with the customer from prospect through follow-up service and support.
Customer life cycle: marketing,customer acquisition,relationship management, and loss/churn.
Service is a repeatable task that a business needs to perform.
Encapsulation places the logic in one place,which is exceedingly desirable.

Chapter 6--Data Communication

A computer network is a collection of computers that communicate with one another over transmission lines or wireless.
A local area network(LAN)- connects computers that reside in a single geographic location on the premises of the company that operates the LAN.
Wide area networks(WANs)- connect computers at different geographic locations.
An internet is a network of networks. The most famous internet is "the Internet"... which is the collection of networks that you can use send email or access a web site.
A protocol is a set of rules that two communicating devices follow. A switch is a special-purpose computer that receives and transmits messages on LAN.
Network interface card(NIC)- connects the devices circuitry to the cable. The computers, printers,switches,and other devices on LAN are connected using one of two media.
Connections between switches can use UTP cable, but if they carry a lot of traffic or are far apart UTP cable may be replaced by Optic fiber cables.
Bluetooth is designed for transmitting data over short distances, replacing cables.
Internet Service Provider(ISP)- three important functions:
1. provides you with legitimate Internet address
2. Serves as a gateway to the Internet
3. Pay for the internet.
DSL(Digital Subscriber Line)- operates on the same lines as voice telephones, but they operate so that their signals do not interfere with voice telephone service.
Cable modems provide high-speed data transmission using cable television lines
Narrowband lines typically have transmission speeds less than 56kbps. Broadband lines have speeds in excess of 256kbps.
A router is a special-purpose computer that moves network traffic from one node on a network to another.
Public switched data network(PSDN) network of computers and leased lines that is developed and maintained by a vendor that leases time on the network to other organizations.
A virtual private network(VPN) uses the internet to create the appearance of private point-to-point connections.
Tunnel- is a virtual, private pathway over a public or shared network from the VPN client to the VPN server.
Key-number used to encrypt the data.
Symmetric encryption-same key is used to encode and to decode
Asymmetric encryption-different keys are used
Firewall- a computing device that prevents unauthorized network access.
Packet-filtering firewall- examines each part of a message and determines whether to let that part pass.
Access control list(ACL)- encodes the rules stating which addresses are to be allowed and which are to be prohibited.
Presence- term that means you'll know who is on the system.