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Instructor’sManual:
Chapter1
IntroductiontoE-commerce
TeachingObjectives
∙Definee-commerceanddescribehowitdiffersfrome-business.
∙Identifyanddescribetheuniquefeaturesofe-commercetechnologyanddiscusstheirbusinesssignificance.
∙RecognizeanddescribeWeb2.0applications.
∙Describethemajortypesofe-commerce.
∙Discusstheoriginsandgrowthofe-commerce.
∙Explaintheevolutionofe-commercefromitsearlyyearstotoday.
∙Identifythefactorsthatwilldefinethefutureofe-commerce.
∙Describethemajorthemesunderlyingthestudyofe-commerce.
∙Identifythemajoracademicdisciplinescontributingtoe-commerce.
KeyTerms
e-commerce,p.47
e-business,p.47
informationasymmetry,p.49
marketplace,p.49
ubiquity,p.49
marketspace,p.49
reach,p.49
universalstandards,p.51
richness,p.51
interactivity,p.52
informationdensity,p.52
personalization,p.53
customization,p.53
Web2.0,p.54
Business-to-Consumer(B2C)e-commerce,p.56
Business-to-Business(B2B)e-commerce,p.56
Consumer-to-Consumer(C2C)e-commerce,p.57
Peer-to-Peer(P2P)e-commerce,p.58
mobilecommerce(m-commerce),p.58
Internet,p.58
WorldWideWeb(Web),p.59
disintermediation,p.68
friction-freecommerce,p.68
firstmover,p.69
networkeffect,p.69
BriefChapterOutline
OpeningCase:
Facebook:
TheNewFaceofE-commerce?
1.1E-commerce:
TheRevolutionIsJustBeginning
TheFirstThirtySeconds
WhatIsE-commerce?
TheDifferencebetweenE-commerceandE-business
WhyStudyE-commerce?
EightUniqueFeaturesofE-commerceTechnology
Web2.0:
PlayMyVersion
TypesofE-commerce
GrowthoftheInternetandtheWeb
OriginsandGrowthofE-commerce
TechnologyandE-commerceinPerspective
InsightonTechnology:
SpiderWebs,BowTies,Scale-FreeNetworks,andtheDeepWeb
PotentialLimitationsontheGrowthofB2CE-commerce
1.2E-commerce:
ABriefHistory
E-commerce1995-2000:
Innovation
InsightonBusiness:
‘Noodlenomics’GuidesInternetInvestmentin2010
E-commerce2001-2006:
Consolidation
E-commerce2006-Present:
Reinvention
AssessingE-commerce:
Successes,Surprises,andFailures
PredictionsfortheFuture:
MoreSurprises
1.3UnderstandingE-commerce:
OrganizingThemes
Technology:
Infrastructure
Business:
BasicConcepts
Society:
TamingtheJuggernaut
InsightonSociety:
WhoReallyCaresAboutOnlinePrivacy?
AcademicDisciplinesConcernedwithE-commerce
1.4CaseStudy:
ThePirateBay:
StealingMediavs.StreamingMedia
1.5Review
KeyConcepts
Questions
Projects
Chapter2
BusinessModelsforE-Commerce
TeachingObjectives:
∙Identifythekeycomponentsofe-commercebusinessmodels.
∙DescribethemajorB2Cbusinessmodels.
∙DescribethemajorB2Bbusinessmodels.
∙Describebusinessmodelsinotheremergingareasofe-commerce.
∙Explainthekeybusinessconceptsandstrategiesapplicabletoe-commerce.
businessmodel,p.319
businessplan,p.319
e-commercebusinessmodel,p.319
valueproposition,p.320
revenuemodel,p.320
advertisingrevenuemodel,p.321
subscriptionrevenuemodel,p.321
transactionfeerevenuemodel,p.321
salesrevenuemodel,p.321
affiliaterevenuemodel,p.322
marketopportunity,p.322
marketspace,p.322
competitiveenvironment,p.324
competitiveadvantage,p.324
asymmetry,p.324
first-moveradvantage,p.325
complementaryresources,p.325
unfaircompetitiveadvantage,p.325
perfectmarket,p.325
leverage,p.325
marketstrategy,p.326
organizationaldevelopment,p.326
managementteam,p.326
portal,p.331
e-tailer,p.333
barrierstoentry,p.337
intellectualproperty,p.338
contentprovider,p.338
transactionbroker,p.339
marketcreator,p.340
serviceprovider,p.340
communityprovider,p.342
e-distributor,p.343
e-procurementfirm,p.343
B2Bserviceprovider,p.344
applicationserviceprovider(ASP),p.344
scaleeconomies,p.344
exchange,p.345
industryconsortia,p.345
privateindustrialnetworks,p.346
industrystructure,p.353
industrystructuralanalysis,p.352
valuechain,p.353
firmvaluechain,p.357
valueweb,p.358
businessstrategy,p.359
profit,p.359
differentiation,p.360
commoditization,p.360
TweetTweet:
What’sYourBusinessModel?
5.1E-commerceBusinessModels
Introduction
EightKeyElementsofaBusinessModel
CategorizingE-commerceBusinessModels:
SomeDifficulties
InsightonBusiness:
OnlineGrocers:
FindingandExecutingtheRightModel
5.2MajorBusiness-to-Consumer(B2C)BusinessModels
Portal
E-tailer
InsightonTechnology:
CanBingBongGoogle?
ContentProvider
TransactionBroker
MarketCreator
ServiceProvider
CommunityProvider
5.3MajorBusiness-to-Business(B2B)BusinessModels
E-distributor
E-procurement
Exchanges
IndustryConsortia
PrivateIndustrialNetworks
5.4BusinessModelsinEmergingE-commerceAreas
Consumer-to-Consumer(C2C)BusinessModels
Peer-to-Peer(P2P)BusinessModels
M-commerceBusinessModels
WhereRU?
NotHere!
E-commerceEnablers:
TheGoldRushModel
5.5HowtheInternetandtheWebChangeBusiness:
Strategy,Structure,andProcess
IndustryStructure
IndustryValueChains
FirmValueChains
FirmValueWebs
BusinessStrategy
5.6CaseStudy:
PandoraandtheFreemiumBusinessModel
5.7Review
Chapter5
E-commerceSecurityandPayment
∙Understandthescopeofe-commercecrimeandsecurityproblems.
∙Describethekeydimensionsofe-commercesecurity.
∙Understandthetensionbetweensecurityandothervalues.
∙Identifythekeysecuritythreatsinthee-commerceenvironment.
∙DescribehowtechnologyhelpsprotectthesecurityofmessagessentovertheInternet.
∙IdentifythetoolsusedtoestablishsecureInternetcommunicationschannelsandprotectnetworks,servers,andclients.
∙Discusstheimportanceofpolicies,procedures,andlawsincreatingsecurity.
∙Describethefeaturesoftraditionalpaymentsystems.
∙Explainthemajore-commercepaymentmechanisms.
∙Describethefeaturesandfunctionalityofelectronicbillingpresentmentandpaymentsystems.
integrity,p.245
nonrepudiation,p.245
authenticity,p.246
confidentiality,p.247
privacy,p.247
availability,p.247
maliciouscode(malware),p.248
virus,p.250
worm,p.251
Trojanhorse,p.251
bot,p.252
botnet,p252
browserparasite,p.254
spyware,p.254
phishing,p.254
hacker,p.256
cracker,p.256
cybervandalism,p.256
whitehats,p.257
blackhats,p.257
greyhats,p.257
spoof,p.258
DenialofService(DoS)attack,p.259
distributedDenialofService(dDos)attack,p.259
sniffer,p.259
encryption,p.262
ciphertext,p.262
key(cipher),p.262
substitutioncipher,p.262
transpositioncipher,p.262
symmetrickeyencryption(secretkeyencryption),p.263
DataEncryptionStandard(DES),p.264
AdvancedEncryptionStandard(AES),p.264
publickeycryptography,p.265
hashfunction,p.266
digitalsignature(e-signature),p.266
digitalenvelope,p.268
digitalcertificate,p.269
certificationauthority(CA),p.269
publickeyinfrastructure(PKI),p.269
PrettyGoodPrivacy(PGP),p.270
securenegotiatedsession,p.273
sessionkey,p.273
SecureHypertextTransferProtocol(S-HTTP),p.275
virtualprivatenetwork(VPN),p.275
Point-to-PointTunnelingProtocol(PPTP),p.275
firewall,p.275
proxyserver(proxy),p.276
riskassessment,p.278
securitypolicy,p.279
implementationplan,p.279
securityorganization,p.380
accesscontrols,p.380
authenticationprocedures,p.380
biometrics,p.380
authorizationpolicies,p.380
authorizationmanagementsystem,p.380
securityaudit,p.380
CERTCoordinationCenter,p.383
US-CERT,p.384
cash,p.286
float,p.286
checkingtransfer,p.286
creditcard,p.287
creditcardassociation,p.287
issuingbank,p.287
processingcenter(clearinghouse),p.287
stored-valuepaymentsystem,p.287
debitcard,p.287
accumulatingbalancepaymentsystem,p.288
merchantaccount,p.291
digitalwallet,p.293
digitalcash,p.293
onlinestoredvaluepaymentsystem,p.294
smartcard,p.294
radiofrequencyidentification(RFID),p.295
digitalaccumulatingbalancepaymentsystem,p.295
digitalcheckingpaymentsystem,p.296
electronicbillingpresentmentandpayment(EBPP)system,p.297
Chapter6
E-commerceMarketing
∙IdentifythekeyfeaturesoftheInternetaudience.
∙Discussthebasicconceptsofconsumerbehaviorandpurchasingdecisions.
∙Explainhowconsumersbehaveonline.
∙DescribethebasicmarketingconceptsneededtounderstandInternetmarketing.
∙Identifyanddescribethemaintechnologiesthatsupportonlinemarketing.
∙Identifyanddescribebasice-commercemarketingandbrandingstrategies.
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