Digital Wallet

Accumulated Balance

Stored Value

Digital Cash

P2P Payment

Digital Checking

Electronic Bill Payment

eCommerce Payment Systems

Digital Wallet

electronic storage of...

ID & Digital Cash

- ex. -

Google checkout

eCommerce Payment Systems

micro-payments

- ie. -

monthly telephone bills

eCommerce Payment Systems

pre-payment of funds

debited on use

- ex. -

Husky card, gift cards, etc.

eCommerce Payment Systems

electronic currency

transferrable over the web

- ex. - 

Linden Dollar

eCommerce Payment Systems

Interpersonal transfer of funds

- ex. - 

PayPal, text-pay-me

eCommerce Payment Systems

eChecks w/ digital signatures

used most often in B2B commerce

eCommerce Payment Systems

online bill paying by consumers

- ex. - 

Bank of America online

Characteristics of Online Prices (x2)

vs. physical prices

↓  Price

↑ Price Sensitivity - consumers can see more prices, quicker

 ↑ Menu Price - online prices are easier to change online

Affective processing - consumers have stronger tie to g/s...(vs. online cognitive processing)

Transaction Costs - visible online...(prices have to be ↓ to compensate)

Delayed Gratification - online goods have to be shipped

Online Price Wars: Direct Effects

↓ profit margins

g/s become commodities

↓ customer loyalty

reputation damaged by price unfairness (...from previous years higher prices)

Reasons for ↓ Prices

Information

↑ info

- easy price comparisons

- info on quality, features, etc.

- proprietary info

Reasons for ↓ Prices

↓ risk premium = ↓ differences between prices

influenced by ↑ info

Reasons for ↓ Prices

buyers & sellers meet more efficiently

↓ transaction costs

Reasons for ↓ Prices

created by "buyer-led" pricing

buyers bid

→ seller accepts

 → buyers influenced to bid lower

 → eventually seller will not sell...price floor

- ex. -

Reverse, Dutch, auctions

Reasons for ↓ Prices

cognitive processing

↓ impulse buys

buyers are more likely to think about a deal, sellers must make deals better

Physical shopping = affective...emotions

Reasons for ↓ Prices

difficult to segment e-commerce by physical location

sellers must create new segmentation strategies

versioning

Reasons for ↓ Prices

↓ price to gain loyal customers

- ex. - 

free cell phone, charge for service

buyers will tolerate ↑ prices to stay anonymous

- ex. - 

Viagra

↑ Fixed costs

↓ Variable costs

...expensive to produce the 1st copy...little, to no cost for further copies

- ex. -

Making a movie & printing to DVD

variations of the same good

enables price discrimination

easy for info goods

strip away features of BEST good → create LESSER versions

Versioning

examples (x6)

Convenience - AOL membership

Comprehensiveness - WSJ.com

Data Manipulation - Lexis-Nexis

Annoyance - WinRar ads

Speed - Comcast

Bonus Features - Special Edition DVDs

Versioning

Rationale for "Free" versions (x6)

Awareness - of new products

Follow-up sales - 30-day virus protection

Network - Adobe suite

Advertising - File sharing sites

Competitive Advantage - Internet Explorer

Build Customer Base

Versioning

Extreme Aversion

You want to sell #2

...create low-end #1, & high-end #3

...people will buy #2 to avoid extremes

Conversions

Binary → Decimal

Conversions

Decimal → Binary...Top-Down

Conversions

Decimal → Binary...Bottom-Up

Twisted Wire

Coaxial Cable

Fiber Optics

Wireless

Modem

Function

&

Modulation

[image]

converts digital binary → analog (sound) for phone lines

Amplitude Modulation -big wave = 1, small wave = 0

Frequency Modulation -fast wave = 1, slow wave= 0

shared tech. resources

platform for IS applications

devices & software required to operate the firm

Computer Hardware

Operating Systems

Enterprise Software

Networking / Telecommunications

Consultants

Data Management & Storage

Internet Platforms

Early 1990s - Computing ...compute!

Mid 1990s - Connectivity...connect!

Late 1990s - Bandwith...collaborate!

describes types of costs eroded

1930-50: acctg machines

1959-present: mainframe & mini-computers

 1981-present: PCs

1983-present: client/server

1992-present: enterprise, internet computing

BIG, expensive calculators

Only used by accountants

mini-computers link to mainframe

mainframe does all computing

Client computer links to servers through internet

Servers host info

Microprocessor performance

Processing power, 2x every 18 months

                Costs, ↓50%  "       "

      # transistors, 2x

Nodes = network size

As nodes ↑, network value ↑

Search for

Extra-

Terrestrial

Intelligence

Uses PCs across country to duplicate power of super-computer

separates info onto multiple servers

avoids congestion

- ex. - 

using 520 to commute vs. placing MS jobs in Seattle

** On-Demand Computing

& 

** Autonomic Computing

On-Demand Computing

Autonomic Computing

self-updating

self-debugging

Local AN (LAN)

500m, 1/2 mile, office or 1 floor

network of computers, etc. w/ unique addresses

based on Internet Protocol...TCP, IP, etc.

***Major Internet Services

e-mail

p2p messaging

document sharing

***Major Internet Services

discussion groups

electronic bulletin boards

***Major Internet Services

discussion groups

e-mail list servers

***Major Internet Services

***Major Internet Services

Telnet

Logging into 1 computer → physically working on another

- ex. - 

Mainframe computers

***Major Internet Services

"File Transer Protocol"

Transferring files

computer → computer

***Major Internet Services

retrieves, formats, & displays info

uses hypertext links

converts IP addresses → English-like domain names

domain name = 32-bit IP address

DNS servers hold databases linking...

domain names → IPs

#.#.#.#

NOTE

# = 0-255

32 bit string = 4 bytes

up to 4 billion addresses

EXAMPLE

132.23.45.255

Domain Names...structure

unique

computer name(s) + domain name

Beginning: 6 top-level domains (domain nams)

.edu, .com, .gov, .mil, .org, & .net

Country Codes: (included if accessing foreign site)

.ca, .au, .uk, .de, .cn, .ch, .su

processing power = small "client computers

clients linked by network server

Network Server

links clients

sets communication rules

assigns unique addresses

Messages

→ broken down into small "packets"

→ Sent along various routes

→ reassembled @ destination

↑ efficiency

comm. protocol used by internet & all its devices

enables packet switching

begins data movement between computers

Packet Switching

establishes connection

sequences packet transfers

acknowledges packets sent

Packet Switching

Delivery of packets

Disassembles & reassembles packets

light speed

no physical medium

propogates in all directions

Used By

radios, analog TVs, phones, lasers, etc.

16 byte, 128-bit address

+ Quadrillion unique addresses

needed to address shrinking IPv4 addresses

electromagnetic wave: 30-3000mhz

Properties

penetrates walls

↓ attenuation...long-distance travel

↑ battery life

reused in multiple locations

very valuable natural resource

Digital (DTV) uses ↓ Prime Spectrum = ↑ efficient

480i

480 horizontal lines...interlaced

odd lines on 1 frame, even on the other

can access websites w/ IP or Domain Name

...if website works w/ IP, but not words

→ DNS error

GSM - Global System for Mobile Communication

T-Mobile & ATT

CDMA - Code Division Multiple Access

Sprint & Verizon

1G - Analog cell networks...voice comm

2G - Digital wireless networks...voice & limited data transmission

2.5G - interim step → 3G

3G - High-speed, video media, always-on (email), web browsing, IMs, etc.

Global Wireless Network Standards

IEEE 802.15

Bluetooth

Personal Area Network (PAN)

IEEE 802.11

Wi-Fi

Local Area Network (LAN)

link up to 8 devices

10 meter area

wireless

↓ power

IEEE 802.11a

5 GHz band

avg. 20 Mbps, up to 54Mbps

IEEE 802.11b

2.4 GHz band

11 Mbps

IEEE 802.11g

2.4 GHz band

OFDM encoding

54 Mbps

uses wireless mobile devices & internet

purchases g/s

transmit messages

enables internet access

any location

- ex. -

cell phones

PDAs

etc.

Info-Based

searches for info

IMs, e-mail, etc

Transaction-Based

buying g/s online or physically

Personalized

anticipates wants based on profile, location, etc.

ex. - beaming coupons for close restaurants

[image]

No website can be the best at all 3

Placement of "." depends on individual site

- ex. - 

Bank website would want ↑ security

*** Compromised Aspects

Confidentiality

improper disclosure of info

- ex. -

steal other peoples' grades

*** Compromised Aspects

improper modification of data

- ex. -

changing your grades

*** Compromised Aspects

denial of service to data

- ex. -

shutting down MyUW

pretending to be a legitimate site or person

takes data, etc. by appearing legitimate

- ex. -

nissan.com

"rich person in Africa" trick

physical attack

→ someone steals cookies

→ goes to legitimate sites

→ uses your data to impersonate you

- ex. - 

Amazon.com "one-click shopping" w/ stored credit-card info

"Denial of Service"

attacks site "availability"

Types

Crashes

Floods

[image]

Sender searches recipient's public key

→encrypts w/ that key

→Receiver decrypts w/ private key

Encryption based on moving a set distance across the alphabet

- ex. -

A=Z, B=Y

or

A=D, B=E

Wi-Fi Mode

Infrastructure

communicate w/ LAN through access points

access points link to wired networks

Wi-Fi Mode

Ad Hoc

p2p

direct communication between wireless devices

do not use access points