CS155a: E-Commerce - Yale Universityzoo.cs.yale.edu/classes/cs155/fall01/lecture11.pdf ·...
Transcript of CS155a: E-Commerce - Yale Universityzoo.cs.yale.edu/classes/cs155/fall01/lecture11.pdf ·...
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CS155a: E-Commerce
Lecture 11: October 11, 2001
The VeriSign Story andan Introduction to B2B
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http://www.bob-soft.com
P( ){ . . .} SP
SP = signature(P, SKbob)
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Bob-soft: PKbob
Sue-soft: PKsue
.
.
.
Bob-soft PKbob
Alice: Verify (P, PKbob, SP)
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New Potential Problem
• Is PKbob the “Right Key”?
• What does “Right” mean?
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Traditional MeaningBob-soft �� PK bob
Accurate?
Traditional Solution
Alice’s Computer
PK CA
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Bootstrapping Trust
(Bob-soft, PKbob) SKCA
Signature Algorithm
CERTbob
Name1, PK1, CERT1
Name2, PK2, CERT2. . .
. . .
. . .
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VeriSign: An Internet “Trust Services” Company
• Full name: VeriSign, Inc.
• Employees: 2300
• Stock Price (VRSN):– $47.67 as of 10/8/01, 2pm
– 52 week range: 26.25 - 196.75
• Earnings Per Share: -76.41
• Provides Internet security certificates, payment services, and domain registration.
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VeriSign History
• Opened headquarters in Mountain View, CA, in 4/1995.
• Founding mission: “Enable everyone, everywhere to use the Internet with confidence.”
• Stratton Sclavos, current CEO, became president in 7/1995.
• IPO in 1/1998 at $3.50/share.• Merged with Network Solutions (most
prominent domain registrar) 6/2000.
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VeriSign (VRSN) Stock ChartSource: Quicken.com (10/8/2001)
[S] = Stock Split
All-time high2/00
Merger with NSIapproved, 6/00
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VeriSign Quarterly RevenuesSource: VeriSign Corporate Press Releases
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$ M
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VeriSign Services
• Domain Registration: Network Solutions is the active registrar for 15.5 million domain names in .com, .net, .org, and .tv.
• Website Security: Digital certificates, e.g., to use SSL. Installed base of 305,000 certificates.
• Payment Services: Credit-card processing capability and other e-commerce tools. 19,000 active online merchants.
• Global Registry: Maintains top-level domains and global databases for DNS lookup. The directory contains over 30 million addresses and serves over 2 million lookups per day.
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Electronic Commerce Definitions
Electronic commerce is a set of technologies, applications, and business processes that link business, consumers, and communities.– For buying, selling, and delivering
products and services
– For integrating and optimizing processes within and between businesses.
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Definitions (continued)
• B2B Commerce: “Interactions relating to the purchase and sale of goods and services between businesses.” Estimated to be 70% of the US economy!
• B2B electronic marketplaces (“B2Bs”):Systems of suppliers, distributors, customers and infrastructure and service providers that use the Internet for communications and transactions.
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Business Models for Electronic Commerce
• Stores and malls
• Virtual communities
• Purchasing center
• Auctions and reverse auctions
�Value-chain service provider
�Value-chain integrator
�Collaboration and concurrent engineering
• Information brokerage
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Traditional Enterprise-Centric View
Enterprise
SupplyChain
IndirectProcurement
Customers
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Internet Business Models and Integration Requirements
The Internet enables new models for marketplaces, trading communities, outsourcing, open sourcing, buying consortia, supply chain integration and “virtual enterprises” that are fundamentally different.
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Networks of Commerce Communities
ProcurementOutsourcing
AssemblyOutsourcing
Enterprise
Markets
Supply Chain
Indirect Procurement
Customers
Distribution
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Specific B2B Tasks
• Search
• Source
• Specify
• Negotiate and bid
• Order
• Receive goods and services
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“Horizontal” B2Bs
• Serve many different industries.
• “Product focus” is broad.
• Examples– HotOffTheWire (consumer goods for small and
midsized retailers)
– NTE (National Transportation Exchange, which sells unused trucking capacity to businesses)
– equalFooting (obtains volume discounts for small businesses through “virtual aggregation”)
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“Vertical” B2Bs
• Serve a single industry• Product focus is on “the supply chain of
one product category” or on “expertise and in-depth content knowledge for one industry.”
• Examples– Covisint (automotive)– MetalSite– BuyProduce
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Revenue Models
• Transaction-related fees– Per-transaction– Flat (e.g., monthly, yearly)– Value-based
• Membership/Subscription fees• Value-added service fees
– Logistics (e.g., shipping)– Financing
• Advertising and Marketing�Sales of Data and Information
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Participant Ownership
• Advantages– Economies of scale– Technical expertise and content knowledge– Incentive to maintain high-volume participation
• Disadvantages– Barriers to niche-player and new-player entry
Anti-trust Issues
• Alternatives– Ownership by technology firms– Ownership by 3rd party investors, e.g., venture
capitalists
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Reminder: Exam October 16
The first hour exam will be given in class on Tuesday, October 16.
This exam counts for 20% of your course grade.