Electronic Business: Concepts, Methodologies, Tools, and Applications (4-Volumes) P6 pot

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Cybercrime
Business organizations and consumers face major economic damages and increased threats when the
underlying information infrastructure is targeted or made vulnerable by unethical, illegal Internet activi-
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various forms of cybercrime is vital for the growth of e-business. Some of the cybercrimes include
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sites, cyber-terrorism, cyber-piracy, and viruses.
The characteristics of cybercriminals, cybercrime victims, and law enforcement agencies have a re-
inforcing effect on each other, leading to a vicious circle of cybercrime (Kshetri, 2006). Approaches to
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practices in different regions of the world, business organizations and law enforcement agencies need
to develop global cybercrime prevention and detection programs standards and a comprehensive ethics
policy. As the global nature of e-business accelerates, it will be also of great importance to promote
common ethical standards and practices across different countries on the Internet.
MANAGERIAL IMPACT OF ELECTRONIC BUSINESS
This section discusses e-business strategies and value creation opportunities.
E-Business Strategy
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gence of new business models, innovative technologies, strategies, and management practices (Thomson,
2006). As the e-business environment becomes more complex economically, socially, politically, and
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policy frontiers, and therefore need to proactively employ theories and methods integrating policy with
market and technology issues (Jarvenppa & Tiller, 1999).
Developing a sound e-strategy should be based on the enterprise plan, business strategy, and enter-
prise information technology plan. Firms need to understand failure factors as well as success factors to
counteract the forces that discourage the growth of e-business. A number of strategy development models
have been suggested to formulate e-strategy including SWOT (strengths, weaknesses, opportunities,
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competitive advantage; rethink business strategy; re-examine traditional business and revenue models,
re-engineer the corporation and Web site; and re-invent customer service (Lee, 2001). Realization of
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innovation, top management championship, strategic investment rationale, and extent of coordination
(Chatterjee et al., 2002).
Value Creation Opportunities
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complementarities, lock-in, and novelty (Amit and Zott, 2001). To explain the value creation potential
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of e-business, an integration of the received theoretical perspectives on value creation is needed and a
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portunity assessment for e-commerce organizations, and on innovative internal and external managerial
relationships and practices. Opportunity assessment for e-commerce organizations mediates the effects
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employee relationships, external networks, and new products and services.
The role of technological opportunism in the context of e-business adoption was studied to under-
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reluctant or unable to do so (Srinivasan et al., 2002). Technological opportunism is a capability that
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advocating new technologies, and by becoming more of an adhocracy culture and less of a hierarchy
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of technology adoption over and above those offered by existing constructs.
CRITICAL ISSUES IN ELECTRONIC BUSINESS
This section discusses privacy and security issues and channel coordination issues.
Privacy and Security Issues
Online privacy policies typically include an organization’s practices on customers’ data collection,
access, disclosure, and disposal. Consumers refer to website privacy policies to decide on the data pro-
vision, search activities, and purchasing decisions. Due to technological, managerial, and legal issues

of privacy and security, corporate online privacy and security have been a subject of in-depth study
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Kuilboer, 2005 Gould & Zhao, 2006). Privacy and security concerns are the number one reason online
users are not purchasing over the Web, since consumers are concerned about the potential for fraud and
the amount of personal information required to complete business transactions.
Privacy issues will become more important, as corporate marketing functions incorporate more web
applications into their marketing tool portfolio. For example, web personalization, one-to-one marketing,
mass customization, and web mining cannot be developed effectively without the privacy issues resolved
between marketers and customers. However, there is a notable discrepancy between what privacy policies
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information to Web merchants increased as the level of privacy guaranteed by the statements increased,
and the level of privacy promised by the statements interacted with respondents’ prior familiarity with
policy statements (Meinert et al., 2006). More recently, the values of two types of privacy assurance
(privacy statements and privacy seals) were investigated (Hui et al., 2007). Findings include: (1) the
existence of a privacy statement induced more subjects to disclose their personal information but that
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their online purchasing activities. An awareness of the security technologies may help consumers and
businesses to build trust in e-business (Furnell & Karweni, 1999). A number of technical protocols and
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methods have been proposed to resolve security issues. To enhance security, many e-commerce web
sites provide secure private channels over the Internet. The Secure Sockets Layer (SSL) protocol is the
most widely used security protocol. Role-based access control (RBAC) is a preferred method for security
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e-business and other cooperative computing environments, access control to shared resources should
allow users to automatically change roles under different contexts. An object-oriented organizational
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tion and role resolution in e-business applications (Cheng, 2000).
Announcing an Internet security breach is inversely related to the market value of the announcing

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market value within two days of the announcement. The security breaches transpired to security devel-
opers. The market value of the security developers is positively related to the announcement of security
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1.36 percent during the two-day period after the announcement. The study reveals that the cost of the
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Channel Coordination Issues
At click and mortar organizations, internal channel coordination is a critical issue to marketing strat-
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to customers through multiple channels can provide increased levels of customer choice and sales op-
portunity. As the online sales channel establishes itself as a strategic sales channel, managers are forced
to pay more attention to channel management to deal with a variety of challenging issues. These issues
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mix, creating synergies across channels, building strategic alliances, creating sustainable competitive
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necessary to attain well integrated multiple channels (Rosenbloom, 2007).
Manufacturers use Web to directly sell products and services to consumers. These direct marketers
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useful for the design of effective channel coordination between manufacturers and retailers. Some of
the analytical results showed that a reseller channel is not necessarily detrimental to the reseller, given
the associated adjustment in the manufacturer’s pricing, changes in wholesale pricing, payment to the
reseller a commission for diverting customers toward the direct channel, or concession of the demand
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A mobile channel is supported by the mobile devices and services and has been popular as a channel
for both sales and marketing communication. Nysveen et al. (2005) studied the effects of mobile chan-
nel additions on consumer-brand relationship dimensions. Surveys of three different brands revealed
positive effects of a mobile channel addition (SMS/MMS) on brand satisfaction, direct relationship
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consumers’ direct relationship investment in the mobile services can lead to increased consumption at
the brand’s main channel.
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EMERGING TRENDS IN ELECTRONIC BUSINESS
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(VoIP) and IP communications, and ubiquitous computing and u-commerce.
Web Services and Semantic Web
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operating between different software applications, running on a variety of platforms and/or frameworks.
Web services can be combined in a loosely coupled way in order to accelerate application development
and integration inside and outside the enterprise (Bose & Sugumaran, 2006). Programs providing simple
services can interact with each other in order to deliver sophisticated added-value services. Extensible
Markup Language (XML) plays a central role in the development of Web services by providing a data
interchange format that is independent of programming languages and operating systems.
The Web Services are based on a core set of enabling technologies, including XML, SOAP, WSDL, and
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Web services technologies are emerging as the platform that can universally standardize the communica-
tion of applications for automating both the provider and consumer ends of e-business transactions. In
order to connect systems, business partners, and customers cost-effectively, Web services let programs
invoke requests to other programs over the Internet via open protocols and standards businesses.
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processes that use Web services could drive the costs down by achieving automated code generation,
reuse, and interoperability (Selim et al., 2002). Web services have shown promising results such as
greater development productivity gains and easier and faster integration with trading partners. However,
despite the rapid development in the Web services area, many issues including security still remain to
be resolved in the context of e-commerce (Misra et al., 2007; Yau et al., 2007).
Search for appropriate Web services published in Universal Description, Discovery and Integration
(UDDI) registries should be effective in terms of time and uniform in terms of interfaces. A number of
search strategies for Web services have been suggested. Zhang et al. (2003) presented an XML-based

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services information in the UDDI registries. The engine processes a search request comprising multiple
queries, UDDI sources, search criteria, and aggregation operator. The UDDI Search Engine (AUSE)
aggregates search results from different UDDI registries to enable easy B2B integration. A single Inter-
net application can invoke many different Web services called composite Web services (Maamar et al.,
2005). Because users’ expectations and requirements constantly change, it is important to include their
preferences, such as quality-of-service and speed in the composition and provisioning of Web services. In
particular, the adoption of loosely coupled and distributed services will cause trustworthiness problems.
The degree of trustworthiness of all involved services in composite Web services need to be evaluated
by analyzing past experiences (Yang et al., 2006).
The Semantic Web has drawn attention from both industry and academia (Cannoy & Iyer, 2007; Joo
et al., 2007). The semantic web is an evolving extension of the World Wide Web in which information
and services on the web are rendered as means for computers and people to work in cooperation (Ber-
ners-Lee et al., 2001). The semantic web comprises the standards and tools of XML, XML Schema,
Resource Description Framework (RDF), RDF Schema, and Web Ontology Language (OWL). Using
semantic web technologies for e-business tasks such as product search or content integration requires
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ontologies for products and services. Ontologies can be used to describe products and services so that
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other parameters such as cost, security, etc. (Trastour et al., 2003). The semantic web can make e-com-
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message protocols (Li & Ling, 2007). .
One important semantic web application area is Web services. Evidence shows that semantic web
services are mandatory components of the semantic web, primarily because entities are more willing to
expose functionality than data in business settings (Hepp, 2006). Semantic web services aim to describe
and implement web services in order to make them more accessible to automated agents. Semantic web
services can support a service description language that can be used to enable an intelligent agent to
behave more like a human user in locating suitable Web services.
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DAML+OIL is an ontology language which consists of a rich set of primitives. If applications are to

exchange semantic information, they will need to use common ontologies. One such ontology which
has been designed for the purpose of describing web services is the DAML-S ontology written in
DAML+OIL. Li and Horrocks (2004) introduced the concept of service matchmaking for e-commerce,
assessed the requirements for a service description language and ontology, and argued that DAML+OIL
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While the development of Web services and semantic web has been impressive, numerous research
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ternal data integration, knowledge discovery, knowledge management, and service-oriented architectures.
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tool development to encourage the exploration and exploitation of the semantic web technologies, and
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web servers typically contain proprietary information from multiple sources, security control over server
access is essential. The best security measures for this purpose are yet to be determined.
Web 2.0
Web 2.0 is a new generation of Internet paradigm. With its promise of a more powerful, engaging,
and interactive user experience, Web 2.0 seems poised to revolutionize the way in which we interact
with information resources. As consumers are rapidly adopting Web 2.0 technologies and applications
like AJAX, mashup, Web logs, wikis, Really Simple Syndication (RSS), collective games, and social
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models and marketing tools. For example, social networking sites such as MySpace and Facebook have
grown tremendously in popularity in the past few years. Social networking services are a fast-growing
business in the Internet. However, it is unknown if online relationships and their growth patterns are the
same as in physical social networks.
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framework to understand how consumer perceptions, privacy, risk, trust, and attitudes affect the adop-
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sion-making process by means of Web 2.0 tools, generate values, and engage consumers in the value
generation process.
lv
Voice over IP (VoIP) and IP Communications

VoIP technologies have continued to evolve, including establishment of several important standards. The
integration of different modes of communication is already happening and the increasing reliability of
the network will foster the rate of adoption of VoIP. The driving forces for the individual and business
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by switching some or all of their voice services to VoIP. However, there are risks associated with VoIP
services which may impact quality and security of the phone system for voice communications. VoIP
communication may be subject to eavesdropping by anyone on the same LAN or a shared medium such
as neighborhood cable modem. If the VoIP user connects through an open wireless hotspot, there is also
an increased risk of eavesdropping.
The development of broadband and wireless connections has led to a wide diffusion of IP-related
applications for businesses. Currently, a large amount of different services and solutions are available
for business application: advanced IP telephony calls and management, Web, audio, video services,
YLGHRFRQIHUHQFLQJ LQVWDQW PHVVDJLQJ ¿OH VKDULQJ HPDLO ID[ DQG YRLFHPDLO DQG SHUVRQDO YLUWXDO
assistance. An IP communication-based network facilitates the convergence of different applications,
which in turn enhances service quality and decreases service costs at the same time. The prospects for
IP communication systems depend upon the interaction between demand and supply in the process of
evaluating innovative solutions.
As VoIP technology and IP communication technology are still in an early stage, it would be interest-
ing to investigate what factors are drivers and inhibitors for the adoption of these new technologies by
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interact with users’ characteristics. What are the technological and organizational issues of adopting
these new technologies?
Ubiquitous Computing and U-Commerce
Ubiquitous computing is a paradigm shift where technology becomes virtually invisible in our lives. The
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ing (Lyytinen et al., 2004). In a ubiquitous computing environment, computing devices, applications,
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anywhere” pervasive computing, organizational activities become more nomadic. The ubiquitous com-
puting environment will make possible new forms of organizing, communicating, working and living.

However, ubiquitous computing systems create new risks to security and privacy.
Ubiquitous computing has enabled a new paradigm of commerce which goes beyond any traditional
FRPPHUFH-XQJODV:DWVRQ7KLVW\SHRIFRPPHUFHLVFDOOHG³XELTXLWRXVFRPPHUFH´RUVLPSO\
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appear to be the biggest obstacle and social issue (Asif & Mandviwalla, 2005). The advancement of
technologies embedded and used in the u-commerce environment raises concerns of customers because
their personal information can not only be constantly accessed and continuously tracked, but can also be
easily disseminated and possibly used in ways unknown to them (Gunther & Spiekermann, 2005). From
the technical point of view, research needs to address the features of successful ubiquitous computing
applications. From an organizational and behavioral point of view, user interface design, perceptions,
satisfaction, security, and privacy issues need to be addressed.
CONCLUSION
,QWKHFXUUHQWWXUEXOHQWGLJLWDOHFRQRP\¿UPVDUHHDJHUWRH[SORUHDQGH[SORLWQHZWHFKQRORJLHVDQG
experiment with new business models to stay in business and be competitive. Due to the rapid tech-
nological advances in web technologies, managers are facing an unprecedented level of e-business
opportunities and challenges. However, the past and current research in e-business has been studied in
various disciplines and has not yet provided a comprehensive view of future e-business directions to
JXLGHUHVHDUFKHUVDQGSUDFWLWLRQHUV7KHSXUSRVHRIWKLVFKDSWHUZDVWRUHÀHFWRQWKHSDVWDQGFXUUHQW
e-business research and technological developments and to identify emerging trends and research issues
in e-business.
The major observations to be drawn from the past studies include: (1) the realization of operational
DQGVWUDWHJLFEHQH¿WVZDVIRXQGWREHFRQWLQJHQWXSRQHIIHFWLYHDVVLPLODWLRQRIHEXVLQHVVLQQRYDWLRQ
top management championship, strategic investment rationale, and the extent of coordination; (2) the
traditional IT development methodologies and infrastructure became inadequate in supporting the com-
SOH[FDSDELOLWLHVRIHEXVLQHVVDSSOLFDWLRQVWKDWQHHGWROHYHUDJHLQWHU¿UPSURFHVVDQGIURQWHQGDQG
back-end system integration; (3) privacy and security issues are critical for the success of e-business;
(4) m-commerce has enormous potential to become a dominant form of market mechanism; (5) virtual
communities and social networking are growing at an unprecedented rate, and have potential to become
prominent business models structured around user interests and needs. These observations should be

taken into account in the design of future research in emerging trends in e-business.
ACKNOWLEDGMENT
I thank three anonymous reviewers for their helpful comments.
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