|
 
The Maybank Group is the largest banking group in Malaysia, with over 260 branches of Maybank and well over 400 branches within the Group. They are dedicated to progress, innovation and excellence, which is why they are the leading financial services group. The Maybank Group has been leading the Malaysian banking industry for over three and a half decades. During this time, the group's achievements have risen to parallel Malaysia's ascent to international recognition and acclaim.
Maybank2u.com is a one-stop financial portal that promises a new, fast, convenient and safe banking environment. It attends to all customer banking needs, along with providing online services for insurance, stock trading, bill payment and e-procurement. In essence, customer can now do banking from anywhere and at anytime.
Besides, Maybank2u.com. is user friendly as all internet users can access to it. Customer can use the Online Financial services once they have one of the following:
1. Maybank ATM Card/Credit Card linked to your account
2. Maybank Credit Card with ATM facility
3. Maybank Account or Credit Card with Internet Banking facility
Also, if you are not a Maybank account holder, u can register as Maybank2u.com PayBills user. Business customers can also enjoy the online services applying for an Internet Banking facility at any of the branch.
In short, Maybank has a satisfactory outlook prospect that it has a potential room to improve as is forecasting that its online stock trading at its Maybank2U Internet portal to be doubled from the current transaction volume in six months time.
Reference (Review): http://ecommerze.blogspot.com/search/label/e-Tailing
A stored-value card represents money on deposit with the issuer, and is similar to a debit card. One major difference between stored value cards and debit cards is that debit cards are usually issued in the name of individual account holders, while stored value cards are usually anonymous.
The term stored value card does not necessarily mean the funds data is physically stored on the card. In many cases the data is maintained on computers affiliated with the card issuer. The value associated with the card can be accessed using
~ a magnetic stripe embedded in the card, on which the card number is encoded, ~ ratio-frequency identification (RFID), or ~ by entering a code number, printed on the card into a telephone or other numeric keypad.
 The Touch ‘n Go smart card is used by Malaysian toll express way and highway operators as the sole electronic payment system (EPS). The credit card sized smartcard is mainly used for toll way fares. It is designed to ease the queue congestion at toll plazas and some drivers use together with SmartTAG (a non-stop electronic toll collection system).
Besides, the card can be used as an integrated ticket in Kuala Lumpur public transport system. So far, there are 3 companies had implemented the card into their fare collection system which are Rapid KL, KTM Komuter, and KL Monorail. The Oyster card is a form of electronic ticketing used on:
~ Transport for London, and ~ some National Rail services within the Greater London area of the United Kingdom.
It is the same contactless smartcard as Touch ‘n Go card in Malaysia. The technology used for the oyster card is known as RFID, which is the same technology used in other electronic pass cards used all over the world, like Japan’s Suica fare cards.
 The Octopus card is a rechargeable contactless stored value smartcard used to transfer electronic payments in online or offline systems in Hong Kong. It is launched in September 1997, and has since grown into a widely used payment system for virtually all public transport in Hong Kong. It is also used for payment at convenience stores, supermarkets, fast food restaurants, on-street parking meters, car parks, and other point-of-sale applications such as service stations and vending machines.
It has been internationally recognized, winning the Chairman’s Award or the World Information Technology and Services Alliance’s 2006 Global IT Excellence Award for being the world’s leading complex automatic fare collection and contactless smartcard payment system, and for its innovative use of technologies.
In 2007 there were over 2.3 million bankruptcies, the majority caused by unmanageable credit card debt. Is this credit card holders did not realize when banks approved their credit card and established their credit limit? This is an alarming signal that should get everyone's attention. Below are some causes and prevention of credit card debts.
Causes 1) Less income but more expenses
It so happens that the main breadwinner of the family loses the job but monthly expenses are not cut down in line with the reduction in income. This obviously leads to a rise in debt as the family is forced to use their credit cards for groceries, utilities, and expenses.
2) Poor money management
Poor money management is one of the reasons why there is an accumulated of debts. Not having a monthly spending plan and not keeping track of the monthly bills will make us unaware of where the money is going. Sometimes we might overspend without realizing it. Also, we might purchase useless items that charging on the credit card, thus have to pay interest on these purchases every month.
3) Medical expenses
Nowadays, the medical expenses are increasing every year. This is because almost every doctor accepts credit cards payments as it is so convenient. Patients are used to make credit card payment when they need treatment although they do not have enough savings in the bank account.
4) Gambling
Most people hope to win the lottery but the chances of that happening are 0%. They spend tomorrow's saved money today just because they expect a promotion in the job or are expecting an inheritance income without need to work hard. They may use the credit card to make gambling payments and this will eventually burden their life as they have accumulated too many debts.
Prevention
1) Stop adding the credit card debts
To eliminate credit card debt stop adding to the problem. If there is thousands of money in debt and continue spending more on the credit cards than this make thing obviously to get worse. We must stop using credit card to borrow from tomorrow for what we want today.
2) Set up a budget
This can be a difficult exercise for many of us since easy access to credit cards allows us temporarily to hide the truth that we spend more than we make. Budgeting helps to highlight how much wasteful and unnecessary spending we engage in that can be curtailed without undue pain. Nondiscretionary items such as mortgage or rent, utilities, food and insurance take up the bulk of most household budgets but it's important to allow ourselves to have some savings if possible.
3) Use cash rather than credit cards when possible
There is a reason that casinos give chips to spend instead or requiring cash: People do not attach the same value to noncash substitutes and will spend and bet more freely. It's the same with credit cards, and retailers know it. People spend more when using a credit card versus cash for purchases. So, next time you buy pair of new shoes or the latest CD, just try to pay by cash.
4) Get a better rate on your existing credit card
If you have thousands in personal debt it can really help the monthly cash flow if you are able to transfer those balances onto a low interest credit card. Your credit rating will generally determine whether you can be eligible for the lowest rate offers but it could definitely be worth the effort. The low introductory "teaser" rate will last for only six to 12 months, but a smart consumer will use that time to aggressively paying down the debt, not running up more debt.
References:
1. http://www.fastweb.com/fastweb/resources/articles/index/102925
2. http://www.bankrate.com/brm/news/debt/debt_manage_2004/top-10-causes.asp
The president and CEO of the Federal Reserve Bank of Cleveland, says,” money in the 21st century are proved to be different form the money of the current century as our money is from the previous century. Just like fiat money replace specie backed paper currencies, electronically initiated debits and credits will become the dominant payment modes, creating the potential for private money to compete with government-issued currencies." In the era, new developments in electronic currency are emerging. Therefore new catchphrases such as smartcards, online banking and electronic currency are being used to discuss money. However, what are these new forms of money? Who will use them? And how do they work?
What is Electronic Currency?
Cash is known in various forms as a tool of exchange and of storing value Although the coins and banknotes that are now abundant in their basic form have existed for thousands of years, the first bank note of the Swiss Federal State, surprisingly did not appear until 1907.
Today, nearly all of the deposit currencies in the world's banking systems are handled electronically through a series of inter-bank computer networks. Although banks have been able to move currency electronically for decades, only recently has the average consumer had the capability to use electronic transfers in any meaningful way.
Electronic currency is essentially a system that allows a person to pay for goods or services by transmitting a number from one computer to another. . Thus, electronic currency is the digital representation of money, or more accurately, the digital representation of currency.
Further Reading: Has the time for electronic currency come?
Mobile Payments (M-Payments) Introduction
 M-payments are payments made using mobile handsets and other devices, either to directly purchase or to authorise payment for goods and services. Such devices are playing an increasing end evolving role in the wider development of electronic payment systems around Asia Pacific, which includes Malaysia.
Mobile network operators (MNOs) have played an important role in pushing the technology necessary for m-payments. In many cases, however, the early efforts to launch m-payment services were met by suspicion from financial institutions, including banks and card companies. Just a few years later, these stakeholders are now collaborating to trial a range of services including: ~ m-banking
~ m-wallet solutions that store credit or debit card information on a SIM chip
~ pay-as-you go or 'contactless card' technologies
~ text messaging systems that can facilitate or enable payments. MNOs are approaching m-payments strategically, in their bid to retain customers and develop wider sources of revenue from lines of business which can be strongly complementary. Fixed-mobile convergence is one manifestation of this, as it gives telecom operators an opportunity to unify their payments platforms on an internet protocol basis and offer discounts or loyalty points on m-payments as part of bundled service. M-Payments As A Channel The speed with which mobile technologies are being adopted shows no sign of relenting. The number of people using mobile phones overtook the number of fixed line phones. Even people without bank accounts often own mobile phones and have incorporated them into their way of life. Along with the spread of mobile networks globally, there have been major advances in technology, especially in the 'secure element' aspect of SIM cards. This has made financial institutions in particular feel more comfortable about the potential for adoption of m-payment systems. While banks are starting to explore opportunities in m-banking, other sectors are also embracing these new technologies. For example: ~ Transportation companies are offering 'touch and pay' access to ticket barriers where a stored-value card is either attached to the handset, or embedded in the SIM
~ Retailers are offering loyalty cards, using similar means of payment, as they seek to reduce the amount of cash they have to handle and carry
~ Credit card companies see mobile handsets as a means to widen their catchment of commercial transactions
~ Advertisers are building web-links into posters in trains and buses and on buildings which can be activated by 3G+ phones from short distance leading to more website visits and more purchases by mobile phone
~ Vending machine operators sell soft drinks and other consumables by enabling payment by phone
~ Content providers, including music and information sites, auction sites and rapidly growing Web 2.0 community sites such as MySpace and YouTube, become globally accessible to paying customers. These initiatives show that there is not only one comprehensive e-payments marketplace, but rather an increasingly diverse range of ecosystems. Payment platform companies such as PayPal can potentially link the vendors with these different ecosystems - but they can also operate quite independent of each other. Business Models And The M-Payments Value Chain There are five types of mobile payments, each driven by different incentives and revenue-earning opportunities. These are business-to-consumer (B2C), business-to-business (B2B), consumer-to-consumer (C2C), person-to-person (P2P) and remittance. These can be further categorised as commercial transactions (B2C, B2B and C2C) and private transactions between individuals (P2P, remittance).  Emerging Business ModelsMalaysia's m-payment market has developed more quickly, but less organically than the Thai market. Emerging services have received government support, but uptake in the market has been limited. Existing services are focused predominantly on bill payment and m-banking, growing slowly into m-wallet services, remittance and top-up/transfer offerings. Maxis and Maybank in Malaysia both provide a simple m-banking service for subscribers (bill payment, balance enquiries, fund transfers), which can also be used to top-up Maxis accounts, download Maxis content and pay for products such as pizzas and movie tickets. Maxis also began international remittance services, but only with Globe subsribers in the Philappines. Maxis customers are changed less than half of what the banks charge for sending money overseas.  
 Another Maxis competitor, Digi, is providing many of the same services - except that its remittance business is focused on Indonesia and it banking partner is Citi's Global Transaction Services.
An interesting twist on the payment gateway model has been provided by Mobile Money International (MMI), a samll Malaysian company, that focuses on enabling m-transfer functions (limited m-banking or m-wallet services). This is in contrast to the early Korean PG provider focus upon content and downloads - perhaps reflecting the more conservative, less digitally aware make-up of the Malaysian market. MMI's transaction fee is in contrast to the existing bank rate (depending on the merchant size). By 2007, MMI had some 12,000 partner merchants. The largest partner merchant is Tenaga Nasional Berhad (TNB), Malaysia's main energy provider, however, the vast majority of the merchants are small.  There are two possibilities for future development. The first is in the growth of P2P and remittace usage nationally. The second is in the development of content, or value-added, downloads - both of which could dramatically drive these markets.Industries Perspectives On M-Payments In recent years, companies from a wide range of sectors have adopted and participated in different tupes of m-payments. The transport industry, for example, is the champion of contactless or'tound-and-pay' solutions, whereas the retail industry has driven m-wallet applications. Each of these types of m-payment have different value chains. The industries most directly involved in the uptake of m-payments are telecommunications, banking, retail, transpostation, media and entertainment. Different mobile payments business type are being adopted by each industry: ~ Telecommunication: content downloads, top-up and m-wallets. ~ Banking: Mobile banking. ~ Retail: M-wallets, touch-and-pay, remittance and auction. ~ Transportation: Touch-and-pay and m-wallets. ~ Media and entertainment: Content downloads, payment gateways and m-wallets.  * Touch-and-pay = 'Touch-and-Go' (Touch 'n Go) transport smartcards, used for expressway tolls and public transport, are provided by Touch 'n Go Sdn Bhd (formerly known as Rangkaian Segar Sdn Bhd).
Reference:
 In the developed countries with all the high technological equipments and facilities, a number of reports showing that there is a dramatic increase in identity theft. For example, McAfee had shown a report of significant increase in computer security breaches leadi ng to the loss or potential loss of sensitive personal data. Research suggests that the numbers of key loggers, which are codes that put onto the computer without user’s knowledge and consent and tracks, records your keystrokes has increased two and a half times in just over two years. This means ALL keystrokes which are including your personal data, financial details and passwords. Identity theft is not benign and exerts a powerful and economically significant burden amongst businesses and individuals throughout the world. In Gartner’s study, there is about 15 million Americans were the victims of fraud that origin from identity theft which indicates there is an increase of more than 50 percent from what they estimated in year 2003. The figures actually came from 2 different sources, thus there are two different statistical and methodologies. At the same time, the research found out that identity theft victims are losing more money and getting less of it back. Besides, hackers nowadays are exploiting internet auctions, non-regulated money transmittal systems and other type of scams. However, there are some organizations being established in order to prevent the theft rate statistic risen and to stop all these threats and attacks incident widely spread. Reference (Review): http://ecommerze.blogspot.com/search/label/Internet%20Security
For more information: --> Fraud Watch International
Article Source: 1. http://EzineArticles.com/?expert=Eric_Hartwell\ 2. http://ezinearticles.com/?Increase-in-Identity-Theft-Reports&id=
 Many people deliberately limit the transactions they do online because they don’t fully trust the e-commerce process. These people simply fear for the security of personal and financial information transmitted over the Web. Gaining the trust of online customers is vital for the success of e-commerce. Based on recent online business statistics, some companies have earned that trust by having 3rd party certification programs. VeriSign is one of the widely used 3rd party certification programs in Malaysia. VeriSign can help your company establish or improve customer trust by securing a company’s Web site for business. VeriSign offers one of the strongest securities in the industry by protecting information exchange between Web servers and clients, from server to server, and even among other networking devices such as server load balancers or SSL (Secure Sockets Layer) accelerators. VeriSign solutions can provide complete cross-network security by protecting servers facing both the Internet and private intranets. Installing VeriSign SSL Certificates makes e-commerce transactions with the Web site safer and submitting sensitive information over the Internet easier. Browsers have built-in security mechanisms to prevent users from unconsciously submitting their personal information over insecure channels. If a user tries to submit information to an unsecured site (a site without an SSL Certificate), the browser will by default show a warning, which can lead the user to question the trustworthiness of this e-commerce site. Recently, VeriSign is offering a series of quick-start efforts, called Go Secure, that combine packaged software, consulting services, and detailed how-to directions. In other words, it is very simple to get and use the certificate after having Go Secure.
 Internet is a public network connecting millions of computers throughout the world. We need to fill in some personal information in order to register as a member of the website. The information is including name, date of birth, gender, address, telephone, e-mail address and so on. “Personal Financial Information” means any record containing a customer of a financial institution, whether in paper, electronic, or another form, that is handled on behalf of the institution. If online purchase, the company will record customer information such as names, addresses, phone numbers, bank and credit card account numbers and so on. Is it secure to protect customer been embezzled by other party? There is always a question in our mind whether the system is reliable? Here are a few approaches on how to safeguard our personal and financial data: Avoid using password that are easy for someone to guess, such as the date of birth. A strong password with a combination of letters, numbers and symbols will provide more security. Never write down the information and carry it in the wallet. Always remember to logout properly after using the financial data services. Remember to close the browser window after using the public computer such as in a public library, school computer lab or Internet cafe to prevent other users from reading your personal information and mail. Pay attention when using an ATM and keep your eyes peeled for anyone who seems a little too interested in your transactions. Use your free hand to shield the keypad when entering your PIN. Whenever you are out for shopping or eating, watch how the clerks handle your card. Then take the receipt with you and never throw it away in a public place. Avast,Symantec, Norton and AVG antivirus are popular software use by computer users. Its clean computer and protect personal information, financial data. Use as many tools as you can to guard your computer information from the nefarious. Failing to protect your computer is just as bad as leaving your door unlocked and invite the burglars to come in. This system can help to which limits actions that can be performed by an authenticated person or group. It determines who can use the network resource and what resource can be used. Only keep the ones you actually use and destroy any that you no longer use by shredding them. For example the mail-order and online purchases. It's all too easy for a dishonest party to use your credit card information. Also, it is advisable to keep the card to a low credit limit so that other party would not be able to rack up many bills. You can protect yourself against potential fraud or identity theft by eliminate your own paper trail. A basic desktop shredder will work for a few sheets at a time, but for large quantities you may want to contact a commercial shredder who will also handle household needs. Hopefully the above few ways can help to safeguarding our personal and financial data. Reference: Retrieved from
http://www.congressionalfcu.org/aboutus/securitycenter/Visa%20-%20Safeguard%20Your%20Personal%20Information.pdf
What is phishing? A growing Internet scam that has caught many people has been given the name "phishing". 'Phishing' is a term used to describe efforts to illegally gain access to banking or personal details. This usually involves an email that is made to look like it has been sent from a trusted source such as a government agency, bank or other company. The email is designed to trick users into revealing their personal or financial information like passwords, account usernames and others. Where does the term 'phishing' come from?The term 'phishing' is a play on the word 'fishing'. In this context, unwary users are baited into providing personal details. Example of phishing The most common example of phishing that most of the internet users facing now are an email claiming there is a problem processing a particular transaction or an issue with a computer system. You will then be asked to provide certain personal details so that the 'problem' can be fixed. Another form of email will be asking you to validate, or update your personal or financial details. You might be asked to reply by email or to click on a hyperlink and update your details over the Internet. Once you follow the hyperlink you are sent to a fake web page which usually designed to look like the legitimate web page. Any details entered on this false web page would be sent to the perpetrators and then most likely misused. Recently, banks have been a favorite target of "phishing". There is an example of a scam e-mail. 
Issue in phishing In 2003 many people received emails supposedly from eBay claiming that the user’s account was about to be suspended unless they clicked on the provided link and updated their credit card information. The scammers use mass-mailing methods and many of the recipients did not even have an eBay account. However, all it takes is 1 or 2 per cent responses for the con to result in a nice haul. Steps to minimize the risk of phishing Step 1: Do not click on any hyperlinks contained in emails asking you to confirm or update your details or to provide any personal or financial information. If you need to go to a web page to complete a transaction or supply information, ensure that it is a legal or correct internet address directly into your browser. Step 2: Be cautious and do not reply to, or follow any hyperlinks in an email if you have any concerns about the validity of it. Step 3: Contact organization that claimed to have sent a suspicious or unusual email. They should be able to confirm if it is real or not. Step 4: Always check the internet address of a hyperlink. The longer the internet address, the easier it is to cover up the fact that it is not legitimate. Step 5: You enter personal or financial details on a web page, make sure the web site is using encryption. Look for the small closed padlock icon in Internet Explorer's status bar
Cyber attacks or vulnerabilities fall under several general cat egories: I. Accidental actions II. Malicious attacks i. Computer viruses ii. Denial of service attacks iii. Distributed denial of service attacks III. Online fraud i. Identity theft ii. Data theft I. ACCIDENTAL ACTIONS Accidental actions contribute to a large number of computer security risks. This category encompasses problems arising from basic lack of knowledge about online security concepts and includes issues such as poor password choices, accidental or erroneous business transactions, accidental disclosure, and erroneous or outdated software. Related problems occur as a result of misconfigured security products and information leakage resulting from insecure information transfers. Education and prudence should be considered key defenses in limiting the frequency and extent of such events, since this form of cyber vulnerability is largely self-inflicted and avoidable. II. MALICIOUS ATTACKS Attacks that specifically aim to do harm are known as premeditated or malicious attacks. They can be further broken down into attacks caused by malicious code and those caused by intentional misrepresentation. Misrepresentation is most often seen with regard to on line fraud and identity theft (see below). Malicious code, on the other hand, is at the root of so-called "crackings" and "hackings" - notable examples of which include computer viruses, data theft, and Denial of Service (DOS) attacks. i. Computer Viruses The most common form of malicious code is a computer virus -- a  program or a fragment of code that replicates by attaching copies of itself to other programs. There are four main classes of viruses: 1. The first class consists of file infectors, which imbed themselves into ordinary executable files and attach to other system executables when the file is run. 2. The second category is system or boot-record infectors, which infect the first sector on a driver from which the operating system is booted-up. These viruses are not as prevalent now that floppy disks are less frequently used. 3. The third group of viruses is called macro viruses, which infect data files that include scripting "macros". 4. Finally, viruses that use more than one attack method are called multi-part viruses. The "Melissa" virus/worm of 1999, which caused about $80 million in damages worldwide, was malicious code imbedded in a Word® document that, when opened, would send itself out as an attachment to the first fifty people in an electronic mail client address book. The May 2000 "I LOVE YOU" virus was even simpler -- a small piece of code attached to electronic mail. Double-clicking on the executable caused it to send an e-mail to everyone in an address book, subsequently damaging victims' machines. Fast-spreading viruses like "I LOVE YOU" cause e-mail servers to overload and businesses to shut down email correspondence. For example, in one day, the "I LOVE YOU" virus caused over $100 million in United States damages and over $1 billion in worldwide losses. ii. Denial of Service Attacks Denial of service attacks, another form of malicious code, are carefully crafted and executed. Denial of Service Attacks is not new, yet they are growing in sophistication. Traditional DOS attacks usually involve one computer attacking another, but the use of multiple computers in a highly organized attack is becoming increasingly common. Such attacks, known as Distributed Denial of Service attacks (DDOS), were witnessed in a number of large corporate computer shutdowns in 2000. Understanding the technical components of a DDOS attack is important, since these attacks precisely reveal the vulnerabilities inherent to the Internet. A DDOS attack functions by overwhelming a server with a deluge of messages that appear to be normal. The DDOS attacker strategically builds an army of key players including: 1. One client machine for coordinating the attack. 2. Three to four host machines, which are battlefields under the attacker's direct control. 3. Potentially hundreds of broadcasters, which are the legions that run the code to generate the flood of packets that attack a target system (consisting of at least one machine). Broadcasters are recruited by port scanning software that determines the machines on which the attacker can gain root privileges. On these machines, the attacker can embed hidden programs that wait for instructions from the Host machines.  The attacker sends a list of the Internet Protocol (IP) addresses of the target machines via strong encryption. With all components ready, the attacker then instructs each machine to simultaneously send data packets against the given IP addresses using false source addresses, in a process known as "spoofing." Since the attack contains too much information to be processed and originates from too many different machines with fraudulent IP addresses, the target servers can survive the attack only by disconnecting from the Internet or by denying service indiscriminately to all clients sending incoming data. Hence, the Distributed Denial of Service attack is so-named in order to describe the resulting consequences of a multi-machine attack. Not surprisingly, for any business on line, a DDOS attack severely restricts its ability to maintain the availability of its commercial service. III. ONLINE FRAUD Online fraud is a broad term covering Internet transactions that involve falsified information. Some of the most common forms of online fraud are the sale via Internet of counterfeit documents, such as fake IDs, diplomas, and recommendation letters sold as credentials; offers of easy money, such as work-at-home offers that claim to earn individuals thousands of dollars for trivial tasks; prank calls, in which dial-up connections lead to expensive long distance charges; and charity facades, where donations are solicited for phony causes.  i. Identity Theft
Identity theft is a major form of online fraud, or misrepresentation. Personal identity theft on the Internet is the newest form of fraud that has been witnessed in traditional settings for many years. For example, in traditional settings, thieves open credit card accounts with a victim's name, address and social security number, or bank accounts using false identification. In the online world, electronic commerce information can be intercepted as a result of vulnerabilities in computer security. Thieves can then take this information (such as credit card numbers) and do with it what they will. This is one of the reasons for which it is critical that consumers and organizations avail themselves of appropriate computer security tools, which serve to prevent many such interceptions.
 Identity theft can also be undertaken on a large scale, as in the case of a company or even a city. For example, in January 2001, the entire municipality of Largo, Florida lost e-mail service for over a week when an unknown company based in Spain compromised its identity. The company hacked into the city's e-mail relay system to steal the Largo.com identity. Soon enough, e-mail spam seemingly from Largo.com addresses flooded the net, and many Internet Service Providers blacklisted all incoming and outgoing electronic messages from the city.
ii. Data Theft
 Data theft is the term used to describe not only the theft of information but also unauthorized perusal or manipulation of private data. Examples of data theft abound. In 1996, a 16-year-old British youth and an accomplice stole order messages that commanders sent to pilots in air battle operations from the Air Force's Rome Laboratory in New York. The two also used the Air Force's own computers to obtain information from NATO headquarters and South Korea's Atomic Research Institute.
In April 2001, two employees of Cisco Systems were indicted for obtaining unauthorized access to Cisco stock. These two men, who worked in the company's accounting division, broke into the computer system that handled stock distribution and were able to transfer stock shares to their private portfolios. The total value of their shares over two separate transfer attempts was nearly $6.3 million, according to the US Department of Justice. These are but a few examples. Anyone, young or old, whether inside or outside a company, can disrupt proper national and business activities by compromising systems in such a manner.
Revenue Model
Revenue model is a description of how the organization will earn revenue, produce profits, and produce a superior return on invested capital. The major revenue models are: Sales revenue model: A company gets the revenue by selling goods, information or services. Transaction fee revenue model: A company receives a commission for enabling or executing a transaction. It is based on the volume of transactions made. Advertising revenue model: A company provides a forum for advertisements and receives fees from the companies that advertise their products. Subscription revenue model: A company charges a subscription fee for the users that access to the content and services offered. Affiliate revenue model: A company receives commissions for referring customers to others web sites. Google’s Revenue Model
A major percentage of Google yearly income is generated by the advertising revenue model. Google advertising revenue model includes Google AdWords, Google AdSense and Froogle.
Google AdWords is pay per click advertising program of Google designed to allow the advertisers to present advertisement to people are looking for information related to what the advertiser has to offer. Google generates most of the revenue from Google AdWords.
Google AdSense is an ad serving program. Website owners can enroll in this program to enable text, image and, video advertisements on their sites. These ads can generate revenue on either a per-click or per-thousand-impressions basis. Froogle is a price engine website launched by Google. It is a service from Google that makes it easy to find information about products for sale online.
Besides, Google is currently testing a new advertising program that pays site owners based on a Cost-Per-Click model, called Cost-Per-Action. It differ from AdSense ads in that a site owner gets paid whenever a visitor clicks on an ad and performs a specific action, such as purchasing a product from the advertiser.
 Amazon.com's Revenue Model Amazon.com was one of the first major companies to sell goods by Internet. Amazon.com generates revenue primarily by selling books, videos, electronics, and kitchen equipment on domestic and international Web sites, such as Amazon Marketplace. Amazon Marketplace is Amazon.com’s fixed price online marketplace that allows sellers to offer their goods alongside Amazon’s offerings. Buyers can buy new and used items sold directly by a third party through Amazon.com using Amazon Marketplace. This sales strategy and program has been very profitable for Amazon.com. Amazon.com charges a commission rate based on the sale price, a transaction fee, and a variable closing fee. Which are sales revenue model and transaction fee revenue model. Moreover, Amazon.com also generates revenue by Affiliate revenue model. Amazon.com was one of the first online businesses to set up an affiliate marketing program. AStore is an Amazon.com affiliate product which website owners can use to create an online store on their site. The store does not allow website owners to sell their own products directly. Website owners pick products from Amazon.com’s store and earn referral fees on the products purchased by their readers. The fee structure is currently the same as for the other affiliate links and ranges from 4% to 10% of the product price.  ebay's Revenue Modelebay is an online auction and shopping website in which people and businesses buy and sell goods and services worldwide. Millions of collectibles, appliances, computers, furniture, equipment, vehicles, and other miscellaneous items are listed, bought, and sold daily. eBay generates revenue from a number of fees such as insertion fees, promotional fees, and final value fees.Insertion fees: When an item listed on ebay, this nonrefundable fee is charged. Promotional fees: Fees that charged for additional listing options that help attract attention for an item, such as highlighted or bold listings. Final value fees: Commission that charged to the seller at the end of the auction.Furthermore, ebay generate revenue by sales revenue model through its subsidiary, Half.com, offers fixed price, person-to-person selling of goods, including books, CDs, videos and games, charging a 15% commission on completed sales. Additionally, a portion of ebay’s revenue also comes from direct advertising on the site, as well as end to end service providers whose services increase the speed of transactions. The acquisition of PayPal, whose products allow the exchange of money over the Internet, brings additional transaction based fee revenue.
 Comparison: These three companies have showed a success in e-commerce by adopting different type of revenue model. Google are adopting advertising revenue model and access revenue model which can be show the major revenue of Google are contribute by advertising services. While Amazon.com are adopting sale revenue model by their selling activity throughout their website. On the other hand, eBay is adopting subscription revenue and transaction revenue by charging the seller on the item listed on their website and the commission charged on each completed sale transaction. References:
Due to the booming usage of internet, e-commerce is getting usual in our life. And now, its advantages will be discussed in this post. Generally, e-commerce can reduce cycle time, improve employees’ empowerment, and facilitate customer support.
Reduce cycle time
Everyone attempts to minimize the total time spend for every transaction. With e-commerce, transactions can be processed quicker as it allows people to carry out businesses without the barriers of time or distance. One can log on to the Internet at any point of time, be it day or night and purchase or sell anything one desires at a single click of the mouse. For instant, a Malaysian customer can manage to order the Korean products at midnight directly with an access to the internet. Hence, the customer does not need to travel to Korea and wait until the shop is operate.
Besides, electronic data exchange allows employees to access customer inventory data to decide whether to place order. As a result, it could reduce its cycle time from the stage of purchasing to delivery. Also, all these stages can be monitored, and the orders can be easily passed and processed to other related department like shipping department, warehouse, accounting department. Furthermore e-commerce reduces the traditional phone calling and snail mailing that used to be ways to process transaction. It fully utilizes the internet to facilitate the communication with strategy suppliers and internal customer. E-commerce allows the company to communicate with its customer even in public holidays. Eventually, it affects the whole transaction process and increase the efficiency.
Improve employees’ empowerment
Traditional businesses were hierarchical with a strict chain of command from the top level down to the management, and then to the employees. This chain of command has altered to some extent with the introduction of new media technologies like the internet.
Communication is particularly influenced in this regard. Communication patterns now can easily bypass those lines of the organization chart via email between employers and employees. This means that employees can more readily contract employers to voice their concerns and participate in decision making.
And now weblogs are a vital part of some companies’ intranets. They reach employees at their desks and are more likely to be read, listened to, and acted upon. In addition, weblogs enable organizations to consider internal communication primary by releasing important information or news to employees first.
Facilitate customer support
E-commerce provides customers with a platform to search product information through global markets with a wider range of choices, which makes comparison and evaluation easier and more efficient. Also, consumers are able to search for shops or perform other transactions anytime in almost location.
Cheaper goods and services is one of the benefits for buyers who purchase online. Buyer can save delivery time and costs when they purchase digital goods and services. Examples are e-books, music and audio clips, software, games, and distance education delivered via the Internet. Some build-to-order companies such as Dell Computer Corp can even provide a competitive advantage by inexpensive customization of products and services.
Non-profit organizations, including government services, also benefit from E-commerce by the online payment system which supports the payment of tax refunds and pensions quickly and securely. Public services such as health care, education, and public social service also benefit from E-commerce. For instance, rural doctors and nurses can access professional information and the latest health care technologies.
 Dell Computer Corporation is one of the largest firms con sisting of approximately 30,000 employees. They are located throughout the United States, containing high top quality supplies and security services. In order for a large company like Dell to grow with all the competitors in the industry, the organization must be willing to take chances, to expand the corporation. However, the risk a company chooses to take can either be detrimental or beneficial.
Dell’s success over the years has caused concern for the future of the young company. Dell’s business-to-business (B2B) exchange failed for a number of reasons. The primary reason is the lack of insight in the research and development area. A lack of knowledge in this area proved to be detrimental because the company was unprepared for the lack of cooperation that other businesses showed in this new idea. Some observers consider that Dell’s strong name and recognition may have worked against it, causing the company to be viewed as purely a computer manufacturer rather than a site also for alternative business products.
Even though the business-to-business sounded like a great new opportunity, Dell jumped too quickly at the new idea. The computer industry is extremely competitive with several B2B exchanges taking place on the Web, and also, only the strongest will survive. Dell and Ariba Inc. set up a B2B marketplace hoping to allow online consumer sales to flourish. This electronic marketplace would serve as a new way to easily obtain high quality products and have them readily available for sale. Their opportunist attitude towards company strategies left them with an unsuccessful venture. In turn Dell would not be the top choice for consumers. Therefore, in early January 2001, a Dell representative said the computer maker closed the B2B exchange because of a lack of demand and unwillingness of customers to participate. Beginning of the business just gave them only a short time frame to produce a profit. Dell gave up too early in the industry because their expected profits were not met. If the business allowed more time to prove itself, it might have been able to gain profits. It is predicted that B2B electronic trade will grow to be worth trillions of dollars over the next few years. They should have focused on showing consumers that they are not just a PC firm. One way to do this would be to advertise the B2B and demonstrate their reliability and value of their computers. This would target their faithful customers, aiming to enhance the loyalty in the Dell brand name.
Another downfall may have been due to Dell’s choice of suppliers. 3M, Motorola, and Pitney Bowes are second-rate firms compared to companies such as Compaq, Hewlett-Packard and Gateway. Last May, these three firms joined forces and formed an Internet-based exchange. These companies had an advantage over Dell because they had a broader array of established business partners and offered a wider variety of IT products.
Choosing the best-fit match partner in the business world may have been difficult. Maybe if Dell incorporated smaller companies, they would have had more support and the potential for a larger growth. On the other hand, if they were to select a well-known firm, closely related to the computer industry, it could have provided consumers with a high degree of reassurance. For example, combining with Canon or Epson may have been a better B2B E-commerce strategy. These companies are closely related and can all be used with a Dell computer. Dell’s best strategy would be to revaluate their suppliers. Thus suppose that Dell team up with Canon and Epson to insure and provide top quality computer/IT products. Dell was too rushed with the business . There is no such thing as “easy money” and with all the competition within the computer industry Dell should have thoroughly researched the positive and negative effects the corporation could receive. The B2B exchange is an opportunity for the future of the company, yet it needs to reinvest in research and development before it continues with this idea. Since other companies have been successful in this type of business, it is proven that this is a profitable business if the time and energy is invested properly. However, Dell recklessly jumped into this market and as a result failed after four months. They were not able to obtain the profits they originally predicted. Luckily Dell is a strong company and was able to survive after the loss. With the future of the B2B commerce looking very bright, it would be a good idea for Dell to continue on this project with an optimistic outlook.
Recently, come across with some articles which illustrating the success stories behind e-commerce. How e-commerce actually helped in creating business opportunities and ways in managing a business more efficiently. With the advanced high-technology components available around us now, most of the households all around the world online, e-commerce can slowly incorporate and becomes mainstream lifestyle.
There is one article stating that there are four areas or cornerstones on which e-commerce should rely in order to take Internet buying and selling to the next level. The areas are listed as follow:
1. Focus on Fulfillment
2. Place Compelling Ads
3. Keep making deals
4. Go mainstream
In the end of the article it gives a few examples of how actually E-Commerce can impart as part of the consumer’s life just by fulfilling their ultimate desires for the familiar and for doing things and business effectively and efficiently. However most importantly, it must be smart personalization of services that do not occur at the expense of a consumer’s privacy.
There are some E-commerce success stories such as e-Bay, Amazon.com and others. There is a website shows a number of small business E-Commerce success stories. Now, I would like to highlight to you a particular interesting business which is selling gourmet cookies online. It is known as TerrysGourmetCookies.com.
The owner of this is Terry Huey who has been baking cookies all of his life and with the help of his son, Justin Huey, the online manger, together they started an online business called Terry’s Gourmet Cookies in 2004. Their secret to success is due to this phrase, “I think that it is very crucial for everyone with an online business to realize that just because you are online but that doe not mean that you cannot seek offline marketing,” says Justin. He found out that marketing offline actually helps with online sales.  Besides, eBay is also another famous E-Commerce success story that everyone heard of till today. Almost everyone who has made a transaction on the Internet has used the global online marketplace that trades just about everything, either for the sale itself or to compare prices. However, there are still rooms of improvements such as overcoming the human software issues as well as sorting out the logistics impediments on a global scale will be key to the further growth of retail Internet commerce. There is a website where interviewed has been conducted with the spokesperson of eBay, Kevin Pursglove. Reference: http://www.ecommercetimes.com/story/2127.html
|
|
|
|
