• Describe the types of cybercrimes facing organizations and critical infrastructures, explain the motives of cybercriminals, and evaluate the financial

• Explain both low-tech and high-tech methods used to gain access to a company’s networks and databases, the vulnerabilities of information systems, and cybercrime symptoms. • Describe the critical role of senior management, acceptable use policies, security procedures, and IT for defense-in-depth.
• Describe types and characteristics of fraud, the role of corporate governance, and IT tools to detect fraudulent activities.
• Explain general, administrative, and endpoint controls needed to secure information systems, networks, and wireless devices; and to manage risk.
• Describe network security measures needed to protect the endpoints or wired and wireless networks and deny unauthenticated access.
• Describe the role of the internal control environment in deterring fraud and complying with regulations.
• Explain the benefits of business continuity and disaster recovery planning methods and why audits are an important part of control systems.
Quick Look Case 1, Opening Case: Managing BYOD Security Risks • 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations • 5.2 IT Vulnerabilities and Threats • 5.3 Defending Against Fraud • 5.4 Information Assurance and Risk Management • 5.5 Network Security • 5.6 Internal Control and Compliance • 5.7 Business Continuity and Auditing Key Terms Chapter 5 Link Library • Evaluate and Expand Your Learning • IT and Data Management Decisions • Questions for Discussion & Review • Online Activities • Collaborative Work • Case 2, Business Case: Army Deploys Androids, Securely • Case 3, Video case: Cars, Appliances Could Be Hack Targets • Data Analysis & Decision Making: Financial Impact of • Breached Protected Health Information References

• 1. Explain the pressures driving the BYOD trend.
• 2. Why had organizations initially rejected the idea?
• 3. What contributed to BYOD acceptance?
• 4. Identify and discuss four key challenges of BYOD.
• 5. How does AT&T Toggle attempt to resolve the challenges you identified in question #4?
• 6. With just a smartphone, users can conduct nearly all their banking business at any time.
The level of flexibility and convenience opens up new avenues for fraud and cybercrime.
• To what extent are users willing to give up convenience for their own security? And for the security of their companies?

• Manage and monitor employee access to company resources.
• Add, update, and delete business applications on employees’ personal devices.
• Wipe all corporate data stored in work mode if an employee leaves the company or loses the device.

• 7. View the brief video titled “Learn More About AT&T Toggle.” Find the link in the Chapter 5 Link Library on the book’s web site, or visit wireless.att.com and search for the title (wireless.att.com/businesscenter/popups/video/learn-more-about-toggle.jsp).
•

a. How is access to the work container protected? What determines the strength of this protection?
•

b. Would you feel confident that your privacy was protected using Toggle?
Debate • . How do you achieve the right balance to protect the enterprise’s security and the employee’s privacy? What is the right balance of security and privacy?

• Make data and documents available and accessible 24/7 while simultaneously restricting access • Implement and enforce procedures and acceptable use policies (AUPs) for data, networks, hardware, and software that are company-owned or employee-owned as discussed in the opening case • Promote secure and legal sharing of information among authorized persons and partners • Insure compliance with government regulations and laws • Prevent attacks by having network intrusion defenses in place • Detect, diagnose, and respond to incidents and attacks in real time • Maintain internal controls to prevent unauthorized alteration of data and records • Recover from business disasters and disruptions quickly Business policies, procedures, training, and disaster recovery plans as well as hardware and software technologies play critical roles in cybersecurity.

• 1. Define national critical infrastructure. Give three examples.
• 2. Why are cyberattacks on critical infrastructure particularly dangerous?
• 3. Explain why hackers and corporate spies use social engineering.
• 4. Explain why advanced persistent threat (APT) attacks are one of the most dangerous cyber threats.
• 5. What are the motives of LulzSec and Anonymous?
• 6. Why do most data breaches go unreported?
• 7. Why are government agencies and organizations imposing do-not-carry rules?

• 1. Mistakes or human error • 2. Malfunctioning systems • 3. Misunderstanding the effects of adding incompatible software to an existing system

• 1. Explain confidentiality, integrity, and availability.
• 2. What is the purpose of passwords, firewalls, and intrusion-detection systems (IDS)?
• 3. Give an example of a weak and a strong password.
• 4. What is time-to-exploitation?
• 5. What is a service pack?
• 6. Explain phishing.
• 7. Why is money laundering a national security threat?
• 8. What is an acceptable use policy (AUP)?
• 9. Why do companies need an enforced AUP?
• 10. Define and give two examples of an unintentional threat.
• 11. Define and give two examples of an intentional threat.
• 12. Define botnet and explain its risk.

• 1. Define fraud and insider occupational fraud.
• 2. How can internal fraud be prevented?
• 3. How can internal fraud be detected?
• 4. Explain why data on laptops and computers should be encrypted.
• 5. Explain how identity theft can occur

• Appropriately selecting, training, and supervising employees, especially in accounting and information systems • Fostering company loyalty • Immediately revoking access privileges of dismissed, resigned, or transferred employees • Requiring periodic modification of access controls (such as passwords)
• Developing programming and documentation standards (to make auditing easier and to use the standards as guides for employees)
• Insisting on security bonds or malfeasance insurance for key employees • Instituting separation of duties, namely, dividing sensitive computer duties among as many employees as economically feasible in order to decrease the chance of intentional or unintentional damage • Holding periodic random audits of the system

• 1. What are the major objectives of a defense strategy?
• 2. What are general controls?
• 3. Define access control.
• 4. What are biometric controls? Give two examples.
• 5. What is endpoint security?

• 1. What are network access control (NAC) products?
• 2. Define perimeter security.
• 3. Define authorization.
• 4. What can firewalls not protect against?
• 5. How can wireless APs put a company at risk?
• 6. What should organizations do to reduce risks from wireless networks?

• Reliability of financial reporting • Operational efficiency • Compliance with laws • Regulations and policies • Safeguarding of assets

• Missing the documents • Delayed bank deposits • Holes in accounting records • Numerous outstanding checks or bills • Disparity between accounts payable and receivable • Employees who do not take vacations or go out of their way to work overtime • A large drop in profits • A major increase in business with one particular customer • Customers complaining about double billing • Repeated duplicate payments

• 1. What is the purpose of an internal control?
• 2. How does SOX Section 302 attempt to deter fraud?
• 3. List three symptoms or red flags of fraud that can be detected by internal controls.

• The purpose of a business continuity plan is to keep the business running after a disaster occurs. Each function in the business should have a valid recovery capability plan.
• Recovery planning is part of asset protection. Every organization should assign responsibility to management to identify and protect assets within their spheres of functional control.
• Planning should focus first on recovery from a total loss of all capabilities.
• Proof of capability usually involves some kind of what-if analysis that shows that the recovery plan is current.
• All critical applications must be identified and their recovery procedures addressed in the plan.
• The plan should be written so that it will be effective in case of disaster, not just in order to satisfy the auditors.
• The plan should be kept in a safe place; copies should be given to all key managers, or it should be available on the intranet.The plan should be audited periodically.

• Are there sufficient controls in the system? Which areas are not covered by controls?
• Which controls are not necessary?
• Are the controls implemented properly?
• Are the controls effective? That is, do they check the output of the system?
• Is there a clear separation of duties of employees?
• Are there procedures to ensure compliance with the controls?
• Are there procedures to ensure reporting and corrective actions in case of violations of controls?

• 1. Why do organizations need a business continuity plan?
• 2. List three issues a business continuity plan should cover.
• 3. Identify two factors that influence a company’s ability to recover from a disaster.
• 4. Explain why business continuity/disaster recovery (BC/DR) is not simply an IT security issue.
• 5. Why should Web sites be audited?
• 6. How is expected loss calculated?
• 7. What is the doctrine of due care?

• IT and Data Management Decisions • 1. Managers need to determine how much their companies need to invest in cybersecurity to meet their legal obligations.
Since there is no such thing as perfect security (i.e., there is always more that you can do), some degree of risk will remain.
•

a. When are a company’s security measures sufficient to comply with its obligations? For example, does installing a firewall and using virus detection software satisfy a company’s legal obligations?
•

b. Assume your company has implemented a BYOD solution. Does your company have to encrypt all data that is accessible on employees own devices?
• 2. Assume that the daily probability of a major earthquake in Los Angeles is .07 percent.The chance of your computer center being damaged during such a quake is 5 percent. If the center is damaged, the average estimated damage will be $1.2 million.
•

a. Calculate the expected loss (in dollars).
•

b. An insurance agent is willing to insure your facility for an annual fee of $15,000. Analyze the offer, and discuss whether to accept it.
• 3. Should an employer notify employees that their computer usage and online activities are being monitored by the company? Why or why not?
• 4. Twenty-five thousand messages arrive at an organization each year. Currently there are no firewalls. On the average there are 1.2 successful hackings each year. Each successful hack attack results in loss to the company of about $130,000. • A major firewall is proposed at a cost of $66,000 and a maintenance cost of $5,000.The estimated useful life is 3 years.The chance that an intruder will break through the firewall is 0.0002. In such a case, the damage will be $100,000 (30 percent), or $200,000 (50 percent), or no damage.There is an annual maintenance cost of $20,000 for the firewall.
•

a. Would you invest in the firewall? Explain.
•

b. An improved firewall that is 99.9988 percent effective and that costs $84,000, with a life of 3 years and annual maintenance cost of $16,000, is available.
Should this one be purchased instead of the first one?
Questions for Discussion & Review • 1. What are the dangers of BYOD to work, and how can they be minimized?
• 2. Many firms concentrate on the wrong questions and end up throwing a great deal of money and time at minimal security risks while ignoring major vulnerabilities.Why?
• 3. Discuss the shift in motivation of criminals.
• 4. How can the risk of insider fraud be decreased?
• 5. Why should information control and security be a top concern of management?
• 6. Explain what firewalls protect and what they do not protect.
• 7. Why is cybercrime expanding rapidly? Discuss some possible solutions.
Evaluate and Expand Your Learning • 8. Some insurance companies will not insure a business unless the firm has a computer disaster recovery plan.
Explain why.
• 9. Explain why risk management should involve the following elements: threats, exposure associated with each threat, risk of each threat occurring, cost of controls, and assessment of their effectiveness.
• 10. Discuss why the Sarbanes–Oxley Act focuses on internal control. How does that focus influence infosec?
Online Activities • 1. Review theWall Street Journal interactive graphic of “China Hackers Hit U.S. Chamber, Attacks Breached Computer System of Business-Lobbying Group; E-mails Stolen” dated December 21, 2011.The link is posted in the Chapter 5 Link Library and is shown here:
http://online.wsj.com/article/SB10001424052970204058404 577110541568535300.html#project%3DCHAMBER122111%
26articleTabs%3Dinteractive.
•

a. Explain the importance and the role of social engineering in this intrusion and cybertheft.
•

b. What can be done to prevent this type of intrusion from occurring again?
• 2. View the video “China Hackers Attack U.S. Chamber of Commerce” dated December 21, 2011.The WSJ details a cyber attack against the U.S. Chamber of Commerce in which e-mails were stolen. http://online.wsj.com/video/
china-hackers-attack-us-chamber-of-commerce/
A4DF072E-BD65-4063-ABFF-ECB6A9C0312C.html.
•

a. Briefly describe the key issues about the intrusion mentioned in the video.
•

b. Draft a list of 3 cybersecurity warnings based on the video.
•

c. How serious was the intrusion, and when did it occur?
•

d. What or whom did the hackers focus on? Why?
•

e. What information could the hackers have gleaned from the intrusion of the Chamber?
•

f. What did the Chamber do to increase cybersecurity after learning of the intrusion and cybertheft?
• g. Explain why cars and appliances can be hack targets.
• h. What other resources are at risk?
• i. Does this incident indicate about how widespread hacking is? Explain your answer.
Collaborative Work • 1. Research a botnet attack. Explain how the botnet works and what damage it causes.What preventive methods are offered by security vendors?
• 2. The SANS Institute publishes the Top CyberSecurity Risks at sans.org/top-cyber-security-risks/.
•

a. Which risks would be most dangerous to financial institutions?
•

b. Which risks would be most dangerous to marketing firms?
•

c. Explain any differences.

• 1. In your opinion, will the outcome of these Army and NSA projects have a big impact throughout government? On the private sector as well?
• 2. What are the top three concerns of the DoD?
• 3. Do you agree that the Army and NSA deciding to allow the use of mobile technologies and to figure out how best to limit risks is encouraging news to the private sector?
• Explain your answer.
• 4. Research and describe the latest developments in the Army or NSA’s mobile strategy. Does the Army still restrict their mobile strategy to Androids?

• 1. Explain why cars, appliances, and other devices not commonly associated with hacking can be hack targets.
• 2. What other resources are at risk? Why?
• 3. What are the concerns of the Department of Homeland Security (DHS)?
• 4. Why is encryption needed?
• 5. Explain how the capability to remotely control machines creates a vulnerability or a problem in cyberwarfare?

 • Explain how e-business processes improve productivity, efficiency and competitive advantage for business organizations and the public sector (government and nonprofit organizations.)
• Describe five key challenges faced by online retail businesses in the business-to-consumer (B2C) marketplace.
• Identify various ways that e-businesses are facilitating trade between buyers and sellers in the business-to-business (B2B) marketplace.
• Describe how government agencies are making use of cloud computing and mobile technologies to enhance government services.
• Identify some of the ethical and legal issues that regularly confront e-businesses

• Gmail—a free, advertising supported e-mail service.
• Blogger—a blog publishing service.
• Google Maps—a web mapping service that powers many map-based services such as the Google Maps web site, Google Maps mobile apps, and many third-party mashup applications through the Google Maps API, the most popular Application Programming Interface on the Internet today. (You read more about mashups and APIs in Chapter 8.)
• Google Earth—a global mapping service that combines satellite imagery, 3D images of buildings and terrain, street-level photographs, user-submitted photos, and Google search.
• Google Analytics—a program for tracking and monitoring metrics and analytics associated with web site traffic.
• YouTube—acquired in 2006, YouTube is now the largest video-sharing site on the Internet.
• Google Docs—a web-based document editor and collaboration tool.
• Google Reader—one of the most popular RSS aggregators for subscribing to blogs and other syndicated web content.
• Picasa—a photo organizing, editing and sharing service • Android Mobile Operating System—developed in partnership with other companies that form the Open Handset Alliance. Android is the most popular mobile OS globally (See Chapter 7).
• Google and Orkut—two social networking services. Orkut is very popular in countries like India and Brazil. Google is viewed by many as a direct competitor to Facebook (read more about Google in Chapter 8).

• “Deceptive display: Steering users toward its own products by displaying them at the top or in the middle of the results page in ways that suggest to consumers that they are natural search results, rather than links to Google’s own sites;
• Search manipulation: Manipulating its search algorithm to exclude or penalize competing sites, effectively “disappearing” them from the Internet;
• Unauthorized content scraping: Stealing content developed by other web sites, such as user reviews, without permission and displaying that content on its own pages, sometimes even without attribution;
• Unfair treatment of advertisers: Manipulating advertisers’ quality scores to inflate ad prices and placing restrictions on its “must buy” ad platform that inhibit customers from using competing platforms; and • Exclusionary conduct in mobile: Buying up companies in the mobile search area that present a nascent competitive threat, and imposing exclusivity restrictions in its Android licensing agreements to maintain and expand its dominance.”

• 1. How does Google’s advertising business require it to operate from the perspective of both a B2B and a B2C company?
• 2. Explain how Google’s PageRank™ algorithm led to search results that users found more helpful that those from earlier search engines.
• 3. Describe how Google’s advertising model offers advertisers superior targeting capabilities compared to traditional advertising channels (e.g., television, radio, and print media).
• 4. Why is Google increasingly blamed for antitrust violations? Cite examples of business practices that are of concern to antitrust regulators around the world.

• 5. Is Google’s collection of data for its Street View program unethical? What specific Street View data collection actions have created concern for users and regulatory agencies around the world?
• 6. When Google cooperates with governments like China by restricting access to information available through its search engine, is it guilty of human rights violations (e.g., freedom of speech)? Is Google contradicting its own motto, “Don’t be Evil,” in these situations?
• 7. Is Google infringing on the rights of authors and publishers when it includes their copyrighted work in its searchable database of books?
• 8. Is Google wrong to set limits on the use of public domain books it has digitized and stored in its database? Is this an example of anticompetitive behavior? Is it unethical?

• 9. What kinds of information were you surprised to learn that Google collected about users?
• 10. Does the policy clearly describe the way Google uses the information it collects?
• 11. Do you feel that the policy describes practices that are a violation of personal privacy?
• 12. Finally, what actions can users take to limit the information that Google collects about them and do you think options to limit information collection by Google are adequate?

• 1. What was the dot-com bubble? What lessons were learned from it?
• 2. List some benefits of operating as an e-business.
• 3. What are the requirements and challenges of e-business?
• 4. What is the importance of PCI DSS compliance?
• 5. Define the term “business model” and list five e-business models.

• 1. How did ING Direct become the world’s largest online bank?
• 2. Why did ING Direct use both online and offline marketing campaigns?
• 3. What attracted customers to online banking at ING Direct?
• 4. What attracted brick-and-mortar banks into the online banking segment?

• 1. Build the marketing plan around the customer, rather than on products • 2. Monitor progress toward the one-year vision for the business in order to be able • to identify when adjustments are needed, and then be agile enough to respond • 3. Identify all key assumptions in the marketing plan.When there is evidence that those assumptions are wrong, identify the new assumptions and adjust the plan.
• 4. Make data-driven, fact-based plans.

• 1. Describe how digital content and services can lead to significantly lower costs.
• 2. What general features make the delivery of online services successful for both sellers and buyers?
• 3. How has Amazon maintained its competitive edge?
• 4. How did ING Direct attract customers to become the world’s largest online bank?
• 5. List the major issues relating to e-tailing.
• 6. List three online marketing planning recommendations.

• 1. What are the benefits of e-government?
• 2. What is the advantage of using cloud computing as the platform for e-government?
• 3. What is the purpose of Apps for Democracy?
• 4. How do e-government apps help fight drunken driving?

• e-markets: marketing and advertising • e-communities: citizens, audiences, and business partners • e-services: CRM, PRM, and directory services • e-content: supplied by content providers

• 1. What are the major e-commerce support services?
• 2. List the security requirements for e-commerce.
• 3. Describe the issues in e-commerce order fulfillment.
• 4. Describe the different types of online advertising • 5. What are the key differences in the CPM, CPC, and CPA methods of paying for advertising?
• 6. What is the difference between SEO and PPC search engine marketing?

• 1. Identify a set of possible alternative e-business models that could be considered for a textbook exchange site.
• 2. List the pro’s and con’s of each e-business model.
Consider factors like how each model might impact students’ willingness to use the site, the complexity of implementing each model, and the potential for generating revenue.
• 3. Prepare a brief memo summarizing your findings to #1 and #2 above and then make a recommendation as to the most likely e-business model that would lead to success for the textbook exchange.
Questions for Discussion & Review • 4. Discuss the reasons for having multiple e-commerce business models in one company.
• 5. Distinguish between business-to-business forward auctions and buyers’ bids for RFQs.
• 6. Discuss the benefits to sellers and buyers of a B2B exchange.
• 7. What are the major benefits of e-government? How are they changing?
• 8. Discuss the various ways to pay online in B2C.
• 9. Why is order fulfillment in B2C difficult?
• 10. Discuss the reasons for e-commerce failures.
• 11. Describe some key ethical issues related to e-commerce.
• . Why is cyber security a growing concern to business and • government agencies? What steps is the government taking to protect the IT infrastructure from cyber-attacks?
• 13. What are the two different forms of search engine marketing?
How are they different?
• 14. Describe the different ways listed in the chapter for e-businesses to advertise.
Online Activities • 15. Assume you’re interested in buying a car.You can find information about cars at autos.msn.com or autobytel.com for information about financing and insurance.
• Decide what car you want to buy. Configure your car by going to the car manufacturer’s web site. Finally, try to find the car from autobytel.com.What information is most supportive of your decision-making process? Was the experience pleasant or frustrating?
• 16. Visit amazon.com and identify at least three specific elements of its personalization and customization features.
Browse specific books on one particular subject, leave the site, and then go back and revisit the site.What do you see?• Are these features likely to encourage you to Evaluate and Expand Your Learning purchase more books in the future from Amazon.com?
Check the One-Click feature and other shopping aids provided. List the features and discuss how they may lead to increased sales.
• 17. Go to nacha.org.What is the National Automated Clearing House Association (NACHA)? What is its role?
What is the ACH? Who are the key participants in an ACH e-payment? Describe the pilot projects currently underway at ACH.
• 18. Visit espn.com. Identify at least five different ways it makes revenue.
• 19. Visit manyeyes.alphaworks.ibm.com/manyeyes/. Select visualizations from the left-side menu bar. Generate two visualizations. How does visualization improve understanding of the data sets?
• 20. Read Google’s new Privacy Policy at http://www.google.
com/policies/privacy/.What types of information does Google collect about people who use its services? How can people either restrict or avoid having Google collect information about them? How does Google say it uses the information it collects about people who use its services?
Collaborative Work • 21. Have each team study a major bank with extensive e-commerce offerings. For example,Wells Fargo Bank is well on its way to being a cyberbank. Hundreds of brickand-
mortar branch offices are being closed. In Spring 2003, the bank served more than 1.2 million cyberaccounts (see wellsfargo.com). Other banks to look at are Citicorp, Netbank, and HSBC (Hong Kong). Each team should attempt to convince the class that its e-bank activities are the best.
• 22. Assign each team to one industry. Each team will find five real-world applications of the major business-tobusiness models listed in the chapter. (Try success stories of vendors and e-commerce–related magazines.)
• Examine the problems the applications solve or the opportunities they exploit.
• 23. Have teams investigate how B2B payments are made in global trade. Consider instruments such as electronic letters of credit and e-checks.Visit tradecard.com and examine their services to SMEs. Also, investigate what • Visa and MasterCard are offering. Finally, check Citicorp and some German and Japanese banks.
• 24. Conduct a study on selling diamonds and gems online.
Each group member investigates one company such as bluenile.com, diamond.com, thaigem.com, tiffany.com, or jewelryexchange.com.
•

a. What features are used in these sites to educate buyers about gemstones?
•

b. How do the sites attract buyers?
•

c. How do the sites increase trust for online purchasing?
•

d. What customer service features are provided?
•

e. Would you buy a $5,000 diamond ring online? Why, or why not?

• 1. Why are government agencies increasingly interested in using cloud and mobile technologies to accomplish their missions?
• 2. Why is security even more important for government agencies than businesses in the private sector?
• 3. What is the purpose of the new federal government IT dashboard?
• 4. Visit the e-commerce set up to showcase cloud-based solutions to government agencies at Apps.gov. How could this site be improved to do an even better job of promoting cloud technologies to government agencies?

• A. Ease of navigation and use.
• B. Quality of the search engine tool for generating a list of homes that fit your criteria.
• C. Features for getting information about homes (e.g., mapping services, photos, videos, price and tax information, etc.).
• D. Advice and tips on the home buying process.
• E. Social features—does the web site have a blog, discussion board or other ways that home buyers can talk to one another about their experiences and questions?

• 1. Based on your experience, which web site does the best job of helping home buyers identify homes they might like to purchase?
• 2. What were the biggest strengths of the sites you visited?
• What were the biggest weaknesses?
• 3. How well did each site do in terms of educating you about the home buying process? Did the information provided seem objective and helpful, or did it appear to be biased toward getting you to call a real estate agent?
• 4. Finally, if you were really faced with the prospect of buying a home, would you use one or more of these sites, or would you spend most of your time working with a real estate agent? Explain your answer.

• 1. Then select recent data set that has been uploaded to Many Eyes.The link in the “data” column takes you to a view of the data set itself.The blue “Visualize” button lets you visualize the data.
• 2. Read the other sections of “Learn More.”
• 3. Create 4 different visualizations and save each to a file, or print your results. Many Eyes uses Java applet technology.
• n a few browsers, you may need to download Sun’s Java Plugin to see the visualizations.
• 4. Review and compare your results.
• 5. What is the value of visualization?
© Images

• Understand the three primary components of mobile technology:
mobile devices, mobile operating systems and software, and wireless networks.

• Describe how mobile technologies are creating opportunities for new forms of commerce in established industries.
 • Recognize how mobile payment methods benefit both consumers and retailers.
 • Describe how location-aware features of mobile devices create opportunities for new services, new approaches to advertising, and valuable benefits for mobile device users.

Identify ways that business organizations are using mobile technologies to become more efficient, productive, and profitable.

• 1. Describe how each of Macy’s mobile retail strategies enhances the in-store shopping experience for customers.
• 2. What will most customers think about Target’s attempt to make mobile price comparison more difficult?
• 3. How does Macy’s benefit from the use of location-based apps like Foursquare and Shopkick?
• 4. Why is it important that Macy’s get customers to opt in to their program before sending promotional text messages?

• 5. Does Macy’s Backstage Pass Program really add value to the customer or is it just a gimmick with short-term benefits?

• Traditional retailers spend a considerable amount of money to maintain an inventory of products and provide sales people to service in-store customers. Is it unethical for customers to “showroom” these retailers, taking advantage of their services but then ultimately purchasing the product online from a retailer that doesn’t provide these services?

• 1. Research the release of Apple’s new products and services.
Build a timeline showing those releases.
• 2. Based on your research, discuss how Apple has shaped the future of at least two industries.
• 1. What are the three technological foundations of mobile computing?
• 2. List the reasons why it can be difficult to categorize mobile devices.
• 3. What factors have led to the recent growth of the smartphone market?
• 4. Why is mobile computing now almost synonymous with wireless computing?
• 5. Why is developing mobile web sites more difficult than developing standard web sites?
• Relatively primitive mobile devices (compared to modern smartphones and tablets)
• Concerns about privacy and security • Slow network connection speeds • Limited market size • Limited and inconvenient mobile payment options • Lack of technological standardization (devices, OSs, browsers, etc.)

• 1. Why did established companies like Nintendo and Sony fail to gain an early position in the growing mobile gaming market?
• 2. How are mobile games different from traditional video games?
What advantages do mobile game apps have over traditional game makers?
• 3. Gaming is the most popular mobile app category in the U.S.
• Social Media apps are the third-largest category. What do you think this says about the role of mobile devices in the lives of U.S. consumers?
• 4. Since most gaming apps are free, how do developers make money in this category?

• Account alerts, security alerts, and reminders • Account balances, updates, and history • Customer service via mobile • Branch or ATM location information • Bill pay (e.g., utility bills), deliver online payments by secure agents, and mobile phone client apps • Funds transfers • Transaction verification • Mortgage alerts MOBILE BANKING AND FINANCIAL SERVICES • Mobile banking is generally defined as carrying out banking transactions and other related activities via mobile devices.The services offered include bill payments and money transfers, account administration and check book requests, balance inquiries and statements of account, interest and exchange rates, and so on.
Banks and other financial institutions let customers use mobile devices for a wide range of services (see Table 7.2).
• People access financial services using a combination of mobile media channels including Short Message Service (SMS), mobile web browsers, and customized apps.
• Mobile banking is a natural extension of online banking services, which have grown in popularity over the last decade (see Figure 7.16).
Throughout Europe, the U.S., and Asia, an increasing percentage of banks offer mobile access to financial and account information. In 2009, ABI Research evaluated 29 U.S. banks on accessibility of their mobile banking services. Six of the banks received top marks:BB&T, Eastern Bank,Fifth Third Bank, Northeast Bank,USAA,and Wells Fargo. Bank of American and Chase also received positive evaluations.
In Sweden, Merita Bank has pioneered many services and The Royal Bank of • Scotland offers mobile payment services. Banamex, one of Mexico’s largest banks, is a strong provider of wireless services to customers. Many banks in Japan allow all banking transactions to be done via cell phone. Experts predict that growth in the mobile banking services sector could reach between 894 million and 1.5 billion customers globally by 2015. The Asia-Pacific region is expected to emerge as the predominant market for mobile banking services (Berg Insights, 2010; Global Industry Analysts, 2010).

• 1. Location. Determining the basic position of a person or a thing (e.g., bus, car, or boat), at any given time • 2. Navigation. Plotting a route from one location to another • 3. Tracking. Monitoring the movement of a person or a thing (e.g., a vehicle or package)
along the route • 4. Mapping. Creating digital maps of specific geographical locations • 5. Timing. Determining the precise time at a specific location L-COMMERCE TECHNOLOGIES Providing location-based services requires the following location-based and network technologies.
• Position Determining Equipment (PDE). This equipment identifies the location of the mobile device either through GPS or by locating the nearest base station.The position information is sent to the mobile positioning center.
• Mobile Positioning Center (MPC). The MPC is a server that manages the location information sent from the PDE.
• Location-based technology. This technology consists of groups of servers that combine the position information with geographic- and location-specific content to provide an l-commerce service. For instance, location-based technology could present a list of addresses of nearby restaurants based on the position of the caller, local street maps, and a directory of businesses. It is provided via the content center via the Internet.
• Geographic content. Geographic content consists of digitized streets, road maps, addresses, routes, landmarks, land usage, Zip codes, and the like.This information must be delivered in compressed form for fast distribution over wireless networks.
• Location-specific content. Location-specific content is used in conjunction with the geographic content to provide the location of particular services.Yellow-pages directories showing the location of specific business and services are examples of this type of content.

• 1. What is the role of the wireless component of this system?
• 2. Outline the consumer benefits described in this story compared to traditional toll road systems. Describe the benefits of the system to the government or agencies operating the toll road.
• 3. Describe how the technology being used by 91 Express Lanes might be used in other kinds of business situations.

• Supporting salespeople while they are waiting on customers • Supporting field employees doing repairs or maintenance on corporate premises or for clients • Supporting traveling or off-site executives, managers, or other employees • Supporting employees while they do work inside the enterprise, but where there is no easy access to desktop computers; e.g., in a warehouse, outdoor facilities, or large retail stores • Employees involved in logistical operations such as driving trucks or delivery vehicles, or working in remote warehouses or storage facilities Investments in mobile enterprise apps are made to provide employees with communication and collaboration tools, and access to data, information, and people inside the organization.

• 1. Describe how mobile devices and apps are being used inside organizations.
• 2. Describe some ways that sales people are benefiting from mobile technology.
• 3. Describe how retailers improve the shopping experience for their customers using mobile technology.
• 4. How is mobile technology being used to improve inventory management within companies?
• 5. Describe some benefits to companies using Mobile Supply Chain Management (MSCM) programs Questions for Discussion & Review • 1. Explain how mobile computing technology is being used by brick and mortar retailers to enhance the in-store shopping experience.
• 2. Describe some of the latest advances in mobile computing devices.What trends do you see in the development of this equipment? Speculate on how future devices might look or function.
• 3. Based on how other industries have developed over time, what do you predict will occur in the area of mobile device operating systems? (Hint: How does this market compare to the operating system market for personal computers?)
• 4. Describe some of the key developments in wireless network technology that have take place in the last few years.
• 5. How are people using mobile devices to conduct banking and other financial services?
• 6. Evaluate the various mobile electronic payment processes described in the chapter.Which ones do you think are likely to emerge as the dominate method for mobile payment? Explain your answer.
• 7. What are some of the risks faced by consumers who use mobile devices for banking and other financial transactions?
• 8. What are the key benefits of using a mobile wallet? Do you think new improvements to this mobile application will make it more attractive to end users?
• 9. How has mobile computing changed the retail shopping behavior of consumers?
• 10. Describe the mobile entertainment market and ways people can use their mobile devices to have fun.
• 11. Why is mobile social networking expected to grow dramatically in the next few years?
• 12. How is mobile computing creating an attractive opportunity for advertisers? Will consumers be receptive to this type of communication? Why or why not?
• 13. List some location-based services, and explain their value to mobile device users.
• 14. How are businesses, governments, and other organizations using mobile computing to enhance their productivity, efficiency and profitability?
Online Activities • 1. Conduct research on the relative advantages/disadvantages of Apple’s iOS vs. Android OS developed by Google and the Open Handset Alliance. Based on your research, predict which system will ultimately become the most popular with mobile device users.
• 2. Take a poll among your classmates and friends to see how many are using feature phones vs. smartphones.
Briefly interview a handful of people in each group to identify their reasons for owning the kind of phone they do. Summarize your findings in a brief report.
• 3. Investigate how your college or university is using mobile computing technology (note: you make have to speak to several different people). Specific areas you should examine include admissions, instructional uses, operations, and information services. Conduct research to see how other campuses employ mobile technology.
Prepare a brief report comparing your campus with others.
• 4. Prepare a brief report comparing Apple’s iPad with various Android-based tablets (e.g., Asus Eee Pad, Samsung Galaxy Tab, Sony Tablet S). How do these products compare with the iPad? What are the strengths and weaknesses of each product?
• 5. Conduct research on the way telecommunications companies are charging for mobile access to the Internet.
Identify providers that offer fixed or flat rate pricing vs.
those that charge based on usage.
• 6. Visit ME, a news site for the mobile entertainment industry (mobile-ent.biz/). Select an entertainment category and study recent developments in that area.
Prepare a report summarizing the current status and predictions of future development in the category.
• 7. Using Youtube.com or any other video-sharing site, watch examples of augmented reality handhelds and promotional campaigns. Write a brief report describing your reaction to this new technology, and predict if it will become more commonplace in the future.
• 8. If you have a smartphone and an appropriate mobile network access plan, download handhelds for Pandora.com and Grooveshark.com. Use these two services for a few days to listen to music. Prepare a presentation that compares the services, listing the strengths and weaknesses of each. (Caution—these services use a lot of bandwidth, so you should check with your cell phone carrier prior to using these handhelds to make sure you won’t incur unexpected expenses on your phone bill)
• . If you have a smartphone, download the shopping app Shopkick.com. Use the app for a few weeks, and then prepare a report or presentation about your experience.
• Describe how Shopkick uses behavioral reinforcement to encourage specific kinds of shopping behaviors (e.g., store visits, looking for promotional products, participating in marketing surveys, etc.) Explain whether or not you think you will continue using application.
• 10. If you have a Facebook account, download the Facebook mobile handheld, and use it for approximately one week.
Prepare a report describing how your mobile experience on the social networking site compares with your experience using a personal computer. Do you think you could use the

• 1. Along with a group of students, sign up for an account at foursquare.com. Make connections with your group members on the service. Use Foursquare for a week or two, checking into the retail locations you visit. At the conclusion of this experience, meet with your group and compare reactions.Was it fun? Did the group gain valuable information from each other? Was the experience compelling enough that you’ll want to maintain your account?
• 2. Yelp.com is a social networking directory service. It helps people find local business based on location, ratings, and recommendations from friends.With a group of students from your class, sign up for an account on Yelp, and download their mobile handheld.
• Connect with your classmates (and other friends) on the Yelp service. Use Yelp for two weeks, and then prepare a presentation with your group on the advantages and disadvantages of this new service.
• 3. Have each member of your group contact their bank to identify what mobile banking services, if any, are offered. Create a table that lists the mobile banking services offered by each bank. Finally, have the team discuss how receptive they are to the idea of banking on their mobile devices. Identify the reasons why people want to engage in mobile banking and reasons why they are reluctant.
• 4. Dropbox.com and box.net are two cloud-based document-sharing services that make it easier for collaborative teams to share documents. Each service has a mobile app.Working in a small group of three to five people, experiment using each of these services and prepare a brief report on the strengths and weaknesses of each mobile document-sharing service.

• 2. Go to Chegg.com to view a demo of its e-Textbook reader. After reviewing the service, evaluate if you think the reader will motivate students to obtain their textbooks from Chegg instead of using alternative textbook suppliers.
• 3. How does Chegg’s mobile price comparison service provide benefit to college students? Do you think it helps to increase rentals and purchases from Chegg?
• 4. What other ways could Chegg use mobile technologies to provide further value to college students?
• 5. Using a mobile device, check the purchase and/or rental prices of the textbooks you are using this semester.
Compare these with prices from alternative vendors (e.g., your college bookstore, Amazon.com, half.com, etc.). Prepare a table comparing your overall cost from each supplier. Based on your findings, do you plan to change the way you obtain textbooks in the future?

• 1. Evaluate the mobile features of Chegg’s textbook program.
• Do they offer services that are truly helpful to college students, or are they just a gimmick?

• 2. Get the latest news and information about MVS by searching on the phrase “Mobile Visual Search” using Google or some other popular search engine.
• 3. Compare and contrast MVS with marketing strategies using QR codes.
• 4. If consumers begin to use MVS on a widescale basis, how should businesses adjust their marketing practices to take advantage of this technology?
• 5. Based on the videos and additional research, how do the MVS services of Goggles (Google), Shopgate (PixlinQ.com), and Shortcut (Koobaba) differ from one another?

 • explain the interactive nature of Web 2.0 and its business applications.
• Identify trends in virtual communities and social networks and assess their impact on business.
• Describe how organizations use Web 2.0 apps to improve business functions.
 • Explain metrics used to evaluate the effectiveness of social media strategies and tactics.
• Describe semantic technologies and tools that improving interactivity and interoperability of Web apps.

• 1. How does social media represent a threat to companies who limit their support services to traditional channels?
• 2. When customers have a negative experience with a company, what are the various ways they can use social media to tell others about their experience?
• 3. Explain why companies can no longer afford to limit their customer service channels to traditional channels (e.g., call centers).
• 4. What are some of the frustrations customers encounter when seeking customer service support from a company?
• 5. What are the benefits for companies that offer customer service support through social channels like Twitter and Facebook?

• 7. Search YouTube and Twitter for customer complaints about Comcast. Some are straightforward complaints about service while others can perhaps be described as angry rants, containing profanity, threats, and highly emotional tirades. Debate: Should companies attempt to respond to all types of negative sentiment expressed on social platforms?
• If no, what should the criteria be for deciding when and when not to respond? If yes, how should companies respond to these highly emotional expressions of customer angst?

• Markets are conversations.
• Markets consist of human beings, not demographic sectors.
• These networked conversations are enabling powerful new forms of social organization and knowledge exchange to emerge.
• As a result, markets are getting smarter, more informed, more organized. Participation in a networked market changes people fundamentally.
• People in networked markets have figured out that they get far better information and support from one another than from vendors. So much for corporate rhetoric about adding value to commoditized products.
• Corporations do not speak in the same voice as these new networked conversations.
To their intended online audiences, companies sound hollow, flat, and inhuman.
• Companies need to realize their markets are often laughing. At them.
• Most marketing programs are based on the fear that the market might see what’s really going on inside the company.
• Networked markets can change suppliers overnight. Networked knowledge workers can change employers over lunch.Your own “downsizing initiatives” taught us to ask the question: “Loyalty? What’s that?

• 1. How has Web 2.0 changed the behavior of Internet users?
• 2. What are the basic tools or applications that characterize Web 2.0?
• 3. Why is Web 2.0 referred to as the Social Web?
• 4. What are some of the benefits or advantages that web developers gain from using AJAX technologies?
• 5. What are some of the most important messages for business organizations in the Cluetrain Manifesto?
• 6. What is feature convergence? Give some examples of this trend with regard to social media apps.

• Selling goods and services • Promoting products to prospective customers; e.g., advertising.
• Prospecting for customers • Building relationships with customers and prospective customers • Identifying customer perceptions by “listening” to conversations • Soliciting ideas for new products and services from customers • Providing support services to customers by answering questions, providing information, etc.
• Encouraging customers to share their positive perceptions with others; e.g., word of mouth • Gathering information about competitors and marketplace perceptions of competitors • Identifying and interacting with prospective suppliers, partners and collaborators See Enterprise 2.0 in the next section

• Posting pictures of people on social networking sites without their permission.
• Tricking people into disclosing credit or bank account information or investing in “Work at Home” scams.
• Sharing information about members with advertisers without the users’ knowledge or consent.
• Disclosing an employer’s proprietary information or trade secrets on social networking sites.
• Posting information on social networking sites that could compromise people’s safety or make them targets for blackmail • Employees with the same address or telephone number as a vendor

• Don’t post private data. Nothing, absolutely nothing you put on a social networking site is private. You should avoid posting personal information including full birth date, home address, phone number, etc. This information is used for identity theft.
• Be smart about who you allow to become part of your network.
It is not uncommon for teenagers to “friend” hundreds of individuals on their Facebook accounts. With this many contacts, there is no way to protect profile or other information.
• Don’t rely on current privacy policies. Social networking sites change their privacy policies regularly. Many have accused Facebook of doing this specifically to wear down user vigilance with regard to maintaining desired privacy settings. Regularly review your social network service privacy policies. Set your privacy settings at the level offering maximum protection—operating as if you have no privacy whatsoever.
• Minimize your use of applications, games, and third-party programs on social networking sites until you have carefully investigated them. They can expose you to malicious programs or viruses. Do not automatically click on links that look like they were sent to you by members of your network.

• 1. Which of these guidelines is the easiest to follow? Which is the toughest? Explain why.

• 1. What are the major differences between Social Networking Services and older online communities?
• 2. What is the basic difference between the Social Graph and Berners-Lee’s concept of the Giant Global Graph?
• 3. Explain Facebook’s Open Graph initiative and how they plan to expand their influence across the World Wide Web.
• 4. What are some potential ways that business organizations can take advantage of Second Life’s unique virtual world interface?
• 5. Why would a business want to create a private SNS? What are some of the challenges associated with doing this?

• Identify potential candidates among your existing network of professionals.
• Ask your network to identify or recommend candidates for a position.
• Evaluate potential employees based on references and referrals from your existing network.
• Actively search for candidates among LinkedIn users using key words or qualifications from their profiles.
• Ask current employees to search among their LinkedIn Networks for potential candidates.
Recruiters Use Professional Networking Sites • For a fee, you can post job openings on LinkedIn.
• Request introductions to potential candidates through your existing network of professionals.
• Use Inmail (the internal LinkedIn e-mail system) to contact potentially qualified individuals.
It is clear that recruiters have come to embrace LinkedIn as an effective and cost-efficient way of generating qualified candidates.
• As LinkedIn’s global presence grows, this will provide an important benefit to companies who need to fill positions internationally.
Sources: Compiled from Heathfield (2012) and LinkedIn.com.
• 1. Why have monster.com, Careerbuilder.com and Craigslist.com lost their effectiveness?
• 2. Why have HR departments turned to professional networking sites like LinkedIn?
• 3. Why is it so essential for career-minded workers to build a professional social network? What can this network do for you?

• 1. BlendTec’s videos are certainly fun to watch, but content isn’t the only thing that has led to the viral nature of their campaign.
What other elements of social media does the company use to optimize the success of their strategy?
• 2. How is BlendTec’s video campaign any different from a television advertising campaign? What are the advantages for the company and the consumer?
• 3. Review the varying popularity of BlendTec’s videos (YouTube shows the number of times a video has been viewed). Can you identify any factors that might explain why some are more popular than others? What recommendations would you make to the company for future Will it Blend videos?
• 4. For Further Exploration: Read Dan Ackerman Greenberg’s tips on how to make a video go viral (techcrunch.com/2007/11/22/
the-secret-strategies-behind-many-viral-videos/), then visit the BlendTec web site. How many of Greenberg’s strategies are employed by the blender company?

• 1. How does a professional social networking service like LinkedIn fundamentally differ from Facebook or MySpace?
• 2. Identify some specific ways in which managers or leaders of organizations will need to change in response to the opportunities and challenges presented by social media.
• 3. Explain why social media tools are likely to make supply chains more efficient and productive in the future.
• 4. What are some specific ways in which workers will rely on social media tools to be more productive in their professions?• Number of Conversation-Relevant Posts on the Site • Number of Links to Conversation-
Relevant Posts on the Site • Earliest Post Date for Conversation-
Relevant Posts • Latest Post Date for Conversation-
Relevant Posts • Duration between Earliest and Last Post Date for Conversation-Relevant Posts • Mean-time between Conversation Relevant Posts • Unique visitors • Cost per unique visitor • Page Views • Return Visits • Proportion of visitors who interact with an ad or application.
• Time Spent on Site • Activity metrics related to:
• - Contest/Sweeps Entries -• Coupons downloaded/redeemed • - Uploads (e.g., images, videos)
• - Messages sent (e.g., Bulletins, • Updates, E-mails, Alerts)
- Invites sent - Newsfeed items posted - Comments posted • Number of application installations • Number of Active Users • Audience Profile—User demographics from self-reported profile information • Unique User Reach • Percentage of users who have installed application among the total social media audience • Growth of users within a specific time frame • Influence—Average number of friends among users who have installed application.