Questions!

We both work in banks so we can both understand the seriousness of this kind of matter in regards to how much it would affect people if certain programs get hacked into. What measures are being taken in financial institutions to make sure that peoples' personal information remains safe? Where is the future of banking going, in regard to how many hackers are out there trying to steal identities and money?
The biggest and best measures banks have against online hackers are encryption and firewalls. Encryption is defined as “To alter (a file, for example) using a secret code so as to be unintelligible to unauthorized parties.” (American heritage dictionary, 2006) The first line of defense against hackers is your initial login. You sign in with your username and a password to an online site. Banks also set up firewalls and encryption codes on their own internal networks. They set these up so that even if hackers can get into the system, they will encounter multiple problems in their attempt to steal money or people’s identities. Banks take hacking very seriously.

What is the most likely purpose of hacking; to profit or to disrupt a system? And, I have never been the victim of any e-crimes. What is the probability that it will happen to me in the future?

Hacking actually has both purposes. An interesting phenomenon about hacking is that many companies will hire computer experts who have knowledge about hacking in order to prevent other hackers from getting into the system. (Cukier, 2006) There are hackers out there who want to hack for financial purposes, and there are ones who only want to hack for the accomplishment.

Do you think it's a combination of faster servers and peoples' increased reliance on the Internet that has allowed for businesses to thrive online? It seems like people these days are more prone to purchase online without the hassle of going out of their homes or offices...or is it just that broadband speed has made it so efficient and easy to purchase?
It has been a huge combination of sorts. With faster response times and larger databases to put more products into, the online business has boomed. As mentioned in the article, one of the biggest changes in online consumerism is the purging of abandoned shopping carts. One of the biggest things that slowed down processing speed was saving online shopping carts that potential buyers had set up. Now that they have the extra space to save them, and the knowledge of when to purge them. (Tan Moinzadeh & Mookerjee, 2005)

Amazon.com, eBay, Walmart.com, and others have efficiently designed websites. What design elements (like product presentation) improve sales, increase visitors, and enhance advertising on these sites compared to other inefficient company websites? What is working for them?
The best things online purchasing sites can offer are flashy, user-friendly interactions. These companies have a difficult time attracting customers over their other sites, so easy to use websites are a must. The most important thing in all sites, just as it is in regular business, is the quality of products. If you don’t have good products, you won’t see higher profits, no matter how pretty your website looks.


References
American heritage dictionary
Cukier, M. (2007). Watch That Passwd. Science, 315, 917.
Tan, Y., Moinzadeh, K., & Mookerjee, V. (2005). Optimal Processing Policies for an e-Commerce Web Server. INFORMS Journal on Computing, 17(1), 99-110.

references

Bechtold, V., & Donahue, M. (2000). Online business blooms thanks to collaboration. Advertising Age, 71(36), 20-20.

Liedtke, M. (2006, April 9). Now starring on the internet: YouTube.com. In USA Today. Retrieved from http://www.usatoday.com/tech/news/techinnovations/1006-04-09-youtube-popularity_x.htm.

Smith, A., & Rupp, W. (2004). Managerial implications of computer-based online/face-to-face business education: a case study. Online Information Review, 28(2), 100-109.

Smith, A. (2004). Cybercriminal impacts on online business and consumer confidence. Online Information Review, 28(3), 224-234.

Tan, Y., Moinzadeh, K., & Mookerjee, V. (2005). Optimal Processing Policies for an e-Commerce Web Server. INFORMS Journal on Computing, 17(1), 99-110.

Cyber Criminals

With the rise of Cyber business naturally the rise of cyber criminals will soon follow. When corporate resources are committed to an online world, retailers expect an increase in sales and public awareness of their company and products. However, with an increase in awareness, comes an increase in crime against that corporation. Many different types of cyber crime exist in today’s world. They range from identity theft to computer viruses. One of the more damaging viruses was the W32.Sobig.f@mm bug that damaged many computers in late 2003. In order to be a successful business, you must combat all potential threats to your business.
With the increase in cybercrime and the fragile trust in using e-commerce in the balance, many organizations, including governmental agencies, have taken steps to combat this growing problem and restore consumer confidence in the use of Web-enabled technologies. Government agencies tend to be less common to be attacked by hackers than private industries, most likely because there is much more of a monetary incentive by hacking businesses with more money than government agencies on a budget. Interestingly enough, approximately 70% of attacks take place on power and energy industries. (Smith 2004)
How do we combat cyber criminals? Strangely enough, it all is in your mind. If we believe that there are many fail-safe methods that will prevent hackers from stealing data, we are more likely to trust that online site. Also, if hackers believe that it is harder to break into a particular site, they are more likely to not try. “Expectancy Theory may be a useful perspective in examining current policies, procedures, and practices in place at corporations in order to study and add meaning and understanding of the impacts of cybercrimes and cybersecurity measures on consumer confidence and, ultimately, the role they play in the use of the Internet as a means of procurement of goods and services.” (Smith 2004) When it comes to successful business and successful cyber criminal combat, follow the old adage, “Its all in your head!”

Model of combat against cyber criminals


Smith, A. (2004). Cybercriminal impacts on online business and consumer confidence. Online Information Review, 28(3), 224-234.

this is an image of a computer hacker trying to crack a password.

Online Business Booms Due to Collaboration

Thanks to many factors, the growth of the internet has been phenomenal. With its ease of use, it’s no wonder that many popular commerce websites have sprung up. Can you imagine this world without eBay, or Amazon.com? How about not having the ability to go online and buy something from Walmart.com or target.com? How about a world where putting .com after a word meant nothing? It’s hard to believe that less than 2 decades ago all of this was true. “Five years ago, who would have imagined that millions of consumers would be buying their airline tickets via something called a ‘reverse auction’ from their desktops? Or that teen-agers in middle America would be less than cool if they didn't have a digital PCS device in the massive pockets of their baggy jeans? Or that the price of a state-of-the-art PC would fall to around the cost of a decent set of snow tires?” (Bechtold, V., & Donahue, M. 2000)
If you want to see how important online commerce is to the world, one can look at advertising revenue. “At the dawn of TV in 1950, less than 3% of total consumer advertising went to that medium. Five years later, TV was the new dominant medium for reaching the consumer, dominance in both mindshare and spending it has held ever since.” (Bechtold, V., & Donahue, M. 2000)
How did the internet become a mainstream fixture in society? It’s all because of collaboration. When problems arise, there are many different software companies that work together to solve technological problems. There is a commitment to provide the resources to get that job done. There is the diversity of perspective from both traditional and online advertisers to make that activity meaningful for everyone. Initial attempts for an “every man for himself” approach to digital marketing failed, and collaboration brought it back together.

Bechtold, V., & Donahue, M. (2000). Online business blooms thanks to collaboration. Advertising Age, 71(36), 20-20.

Want to start an online business?

Server and Processing speed

Now that our companies know how to use an online business, how can they effectively use it? From a technological standpoint, the most important thing to do is maintain your server. The last few years have observed an explosive growth in online business. As the number of internet users in the world continues to grow, so does the amount of online businesses. As of 2004, there were 945 million people around the world that have internet access, and online retail sales grew to $168 billion in 2005. However, a possible cause of slowing in this market is congestion of the servers. As alluded to before, to be successful, you must have the server space.
One such popular website was YouTube, which was not the first of its kind; however it was the first that offered enough bandwidth and server space in order to accommodate the massive amount of videos posted to its site each and every day. (Liedtke 2006) YouTube gained popularity because of its ability to keep from crashing. YouTube and other servers must avoid their site crashing due to wasted space used by consumers. On YouTube it might be a person posting the same video 3 times, or on retail sites it might be the approximate 66% of all online shopping carts that are abandoned. Those searches aren’t discarded instantly; rather they are saved on the server. With studies done in the late 1990’s, nearly 28% of all abandoned shopping carts came due to slow server speed. Every one of those abandoned carts is a loss of a potential sale.
One solution found to solving the problem of server speed is to divert internet traffic in different directions. Instead of having all commands go through one computer, it divides information into separate servers, and therefore improves response times. The initial web server (which in reality could be a collection of individual computers) handles front end tasks, such as browsing, comparing products, searching, and placing items in the shopping cart. Other servers will then handle checkout activities. With the two servers working separately, but together, much more is accomplished in the same amount of time. The faster your servers, the more profit will be made.

Tan, Y., Moinzadeh, K., & Mookerjee, V. (2005). Optimal Processing Policies for an e-Commerce Web Server. INFORMS Journal on Computing, 17(1), 99-110.

Learning about doing business online

Online business education is becoming more and more common in business and higher education institutions in the US and other countries. Many companies are realizing the importance of doing businesses online, mainly for its speed and how it covers distance like no other. “Allowing the public access to a common location via the Internet to exchange valuable information is the first step to gaining educational sponsorships and grants from industry leaders.” (Smith and Rupp 2004) More and more companies are starting to realize that learning how to effectively use e-systems can provide them with an edge over their competitors, and companies are incorporating it into their overall business strategies.
One of the most important skills taught for online businesses is distant learning. The building of collaborative relationships, learning about global thinking, and using technology resources to communicate are all important skills in today’s e-commerce world. Businesses today that do not integrate e-learning into their training classes today are left far behind. With companies today, it is not only doing business online with customers that are important, it is doing business internally over the internet. Companies are now so widespread over the world, that doing business over the telephone and regular mail are almost impossible. Without the speed and flexibility of the internet, companies would fall far behind their competitors.
Online education has its roots in the mid 1990’s, and as of 1995, one third of institutions of higher education offered some sort of distance learning. (Smith and Rupp 2004) Today, nearly all higher learning institutions offer online education. This class is a very good example of this, as of 1995, ASU offered no online courses, while today, there are a myriad of choices in online distance learning. The US Department of Education reported that total college enrolment increased to a record 15.3 million students by the end of 2001. In fact, by 2011, the number of bachelor's degrees is expected to reach a peak of 1.4 million, an increase of 13 percent over current numbers. Graduate student enrolment at the same time is expected to increase by 12 percent by 2011. It is this segment of the population that will have the most established comfort zone for the Internet and the customization associated with IT-intensive tools. This group will probably see online education as a requirement instead of an option in their learning strategies.

link
Smith, A., & Rupp, W. (2004). Managerial implications of computer-based online/face-to-face business education: a case study. Online Information Review, 28(2), 100-109.

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