E-Business Glossary

| A | B | C | D | E | F | G | H | I | J | L | M | N | O | P | R |

| S | T | U | V | W | X |

• 24/7
  

  The operation of a site or service 24 hours a day, seven days a week.

A

• acceptable use policy
  

  (AUP) An acceptable use policy outlines the conduct expected from a computer user. Businesses, schools, and ISPs create AUPs to prohibit spamming, piracy, pornography, and other inappropriate/illegal uses.

• ADSL
  

  (Asymmetric Digital Subscriber Line) A technology that allows more data to be sent over existing copper telephone lines. ADSL supports data rates of from 1.5 to 9 Mbps when receiving data (known as downstream rate) and from 16 to 640 Kbps when sending data (known as upstream rate).

• affiliate marketing
  

  Affiliates include descriptions, ratings, reviews, or other information about another firm’s product on their web site.

  In a pay-per-click model, affiliates receive a commission each time the client loads the seller’s page. In the pay-per conversion model, affiliates only receive commissions on qualified prospects or click-throughs that result in a sale.

• Alberta SuperNet
  

  Alberta SuperNet is a high-speed, high-capacity broadband network linking 4,700 government offices, schools, health-care facilities and libraries in 422 Alberta communities.

  The SuperNet will enable government, educators and health care workers to share and deliver information and services province-wide, and faster than ever before. ISPs can "piggyback" onto the Alberta SuperNet network and offer high-speed services to areas that, until now, have been too expensive or difficult to reach.

  Visit www.albertasupernet.ca for more information

• algorithm
  

  An algorithm is like a recipe; it provides a set of steps, or formula, to solve a particular problem. Search engines, for example, use an algorithm to rank web sites.

• ARPANET
  

  The ARPANET was the first name for the Internet, which was developed in 1969 by the United States Defense Advanced Research Project Agency (ARPA). At that time, the wide-area network (WAN) was used strictly for military and research purposes.

• ASP
  

  (application service provider) In essence, ASPs provide a way for companies to outsource some of their information technology needs (e.g., logistics, joint billing, digital asset management, online payment processing, online sales). You lease the use of your ASP’s software applications instead of building the software from scratch.

  Consider your home phone line, for example. You pay for access to a telecommunications network that someone else has built.

• authentication
  

  The process of identifying an individual, usually based on a username and password.

B

• B2B
  

  (Also B-to-B and business-to-business e-commerce) Business-to-business e-commerce refers to the exchange of services, information and/or products between businesses via the web. B2B e-commerce accounts for the lion’s share of sales online.

  (Compare with B2C e-commerce)

• B2C
  

  (Also e-tailing, B-to-C, selling online) Business-to-consumer e-commerce refers to the exchange of services, information and/or products from a business to a consumer via the web.

• backbone
  

  Part of the Internet that handles the major traffic and employs the highest transmission speeds. At one point, the Internet was actually called the M-Bone, but we digress ;)

• back end
  

  All of the processes and components that happen behind the scenes (e.g., database management system, server, server-side applications).

• bandwidth
  

  The amount of data that can pass through your Internet connection in a fixed period of time. Usually measured in bits per second (bps). Sometimes referred to as “pipe”.

• banner ad
  

  Rectangular ads often seen on web sites. Banner advertising remains a popular revenue model on information portals and e-commerce sites. Limited site traffic and click-throughs on many sites have led to mediocre success.

  Banner ads continue to evolve, particularly in terms of sizes, location on page, and interactivity (e.g., banners developed in Flash). Some sites will also display banners that are targeted for a particular user’s interests.

• blog
  

  Short form of weblog is a web-based publication consisting of original or cited articles. (e.g., www.efuture. ca/alberta/blog)

• bookmark
  

  If you see a web site you love (hint...hint...www.e-future.ca), bookmark it! Your web browser will allow you to bookmark a site, or save the site’s address, so you can easily visit the page at a later date.

• brick-and-mortar
  

  Refers to a traditional “brick-and-mortar” retail location, as opposed to a pure play or “clicks-and-mortar” retailer.

• broadband
  

  A type of data transmission in which a single medium (wire) can carry several channels at once. Cable TV, for example, uses broadband transmission.

• brochureware
  

  A basic web site that acts as an online brochure. Typical web content includes contact information, product/service overview, company information, a site map, privacy policy, and a FAQ section.

• buy-side application
  

  An online venue where one buyer buys from many sellers, frequently through reverse auctions or request for quote applications

  For example, the City of Red Deer might set up a buy-side application on their web site to post tenders or Request for Proposals (RFPs) and receive competitive bids from multiple suppliers.

C

• cable modem
  

  Cable modems are designed to operate over cable TV lines. Because the coaxial cable used by cable TV provides much greater bandwidth than telephone lines, a cable modem can be used to achieve extremely fast access to the World Wide Web. Cable modem speeds range from 500Kbps to 30Mbps.

  There is considerable difference in speed between a modem that operates on telephone lines and a cable modem. For instance, compare a standard modem that operates over telephone lines at about 56,000 bits per second to the slowest (first generation) cable modems, operating at 500,000 bits per second; there would be a difference of 444,000 bits per second.

• cache
  

  Pronounced cash. Cache basically refers to short-term computer memory for fast data access. Browsers can hold entire web pages or graphics in cache, so the web page loads more quickly.

• certification authority
  

  (CA) A trusted third-party organization or company that issues digital certificates used to create digital signatures and public-private key pairs. The role of the CA in this process is to guarantee that the individual granted the unique certificate is, in fact, who he or she claims to be.

  An individual wishing to send an encrypted message applies for a digital certificate from a Certificate Authority (CA). The CA issues an encrypted digital certificate containing the applicant's public key and a variety of other identification information. The CA makes its own public key readily available through print publicity or perhaps on the Internet.

• CGI
  

  (Common Gateway Interface) A specification for transferring information between a web server and a browser. Web forms often use CGI to interface with a back-end database. CGI enables users to receive dynamic content based, as opposed to static HTML pages.

• chargebacks
  

  A fraudulent purchase online will result in the credit card company charging back the purchase amount to the customer’s card. The merchant is responsible for a chargeback fee and for the loss of the merchandise.

• CIRA
  

  (Canadian Internet Registrar Authority) CIRA is a not-for-profit organization mandated to operate the dot-ca top-level domain. Registrars can become certified to sell dot-ca domain names through CIRA.

• clicks-and-mortar
  

  Clicks-and-mortar retailers sell products online and also have a physical, brick-and-mortar location (e.g., Chapters.ca).

• clickstream analysis
  

  Percentage of people who view a web page, click on one of its banner ads, and load the advertiser’s site.

• client-side applications
  

  Scripts or programs that are embedded in a web page and run on the client computer.

• co-location
  

  A server, usually a web server, that is located in a facility dedicated to web hosting, which include a secured cage or cabinet, regulated power, dedicated Internet connection, security and support. Most co-location facilities offer high security, including cameras, filtered power, fire detection, extinguishing devices, multiple connection feeds, and backup power generators.

• content management
  

  Software that enables businesspeople to create and maintain the content on their web site through template-driven pages, such as the home page, about us pages, product catalogue, and contact pages.

• cookie
  

  Cookies are messages that a web server transmits to a web browser so that the web server can keep track of the user's activity on a specific web site.

  Cookies are used to collect demographic information, personalize the user’s experience, and to monitor advertisements.

• countermeasures
  

  A physical or logical procedure that recognizes, reduces, or eliminates a potential Internet security threat.

• CPM
  

  An Internet advertising pricing metric that equals the dollar amount paid to display 1000 ad impressions. An impression refers to the display of an online ad.

• CRM
  

  (Customer relationship management) CRM entails all aspects of service and sales interactions a company has with its customer. CRM often involves personalizing online experiences, help-desk software, and e-mail organizers.

• cryptography
  

  The enciphering and deciphering of messages in secret code or cipher. Cryptography is used to protect e-mails, credit card information, and corporate data.

• CSS
  

  (cascading style sheets) Style sheets are predefined page displays of elements on a web page, such as headers, text, and navigation. CSS can help ensure consistency throughout a web site and simplify web programming.

• cyberlaw
  

  Body of law that deals with the Internet. Cyberlaw includes areas such as copyright, intellectual property, e-contracts, jurisdiction, defamation, privacy, software piracy, domain names vs trade-marks, and other issues.

• cybermall
  

  Equivalent of an online mall. Like traditional malls, merchants lease space to sell their products/services.

  Cybermalls often provide clients with payment processing, product display, and security features, plus the infrastructure needed to add, modify, and delete products, manage orders, and maintain a storefront.

• cybersquatting
  

  The illegal practice of registering a domain name that is the registered trade-mark of another company with the hope that the trade-mark owner will pay huge amounts of money for the domain rights.

D

• data mining
  

  Looking for hidden patterns and relationships in data to predict future behaviour.

• database
  

  Similar to an electronic filing system, a database is a collection of information organized for quick access. Databases are organized by fields (single piece of info), records (complete set of fields), and tables (list of records).

• deep linking
  

  A web link to a page on a web site other than its home page. Some companies oppose this practice, because of lost revenues due to visitors bypassing the advertising on the home page.

• digital certificate
  

  An attachment to an e-mail message or data embedded in a web page that verifies the identity of a sender or web site.

• digital signature
  

  A digital code that can be attached to an electronically transmitted message that uniquely identifies the sender.

• disintermediation
  

  The concept of removing intermediaries or middlemen (i.e., agents, distributors, retailers, wholesalers) and selling directly to customers.

• DNS
  

  (Domain Name System) An Internet service that translates domain names into IP addresses. For example, the domain name www.cbsc.org translates to 192.197.183.45. Both addresses will take you to the same web site. But it’s much easier for us to remember a word than a string of four numbers.

• domain name
  

  A name that identifies one or more IP addresses (e.g., www.e-future.ca). There are several domain name suffxies, called top-level domain names (TLDs), such as:

  .gov (government agencies)

  .mil (US military)

  .org (not-for-profit organizations)

  .com (commercial businesses)

  .ca (Canadian domain names)

  .net (network organizations)

• dot-com
  

  (.com) Often used to refer to an online retailer or Internet business and may have a negative connotation due to the highly publicized dot-com crash in 2000.

• download
  

  Downloading refers to copying documents or files from the Internet or a network server to your computer. The opposite of download is upload.

  If you have a web site, you need to upload files to your web server to make them available on the Internet.

• DSL
  

  (Digital Subscriber Line) DSL technologies allow data to be sent over copper, telephone wires.

• dynamically generated
  

  Refers to web content that changes each time it is viewed, based on user preferences, geographic location, time of day, previous pages viewed, or search criteria.The opposite of dynamically generated content is static web content.

E

• e-business
  

  (electronic business) The use of the Internet to facilitate the buying, selling, or exchanging of products and services. E-business extends beyond selling online and impacts management, marketing and sales, operations, and legal aspects of operating your business.

• e-business plan
  

  An e-business plan, like a traditional business plan, maps out your business’s strategy. Your e-business plan will pay more attention to the electronic aspect of your business:

  Describe the purpose of your e-business:
  Analysis of your target market, industry, and competition
  Map out your implementation plan. Include all relevant revenues and expenses (e.g., software, hardware, staffing, training, set-up fees)
  Indicate your e-business partners
  Outline your logistics and fulfillment, marketing, and operations strategy
• e-cash
  

  (Digital cash) The electronic equivalent of paper money or coins that enables the secure, anonymous purchase of low-priced items over the Internet.

• e-commerce
  

  E-commerce and e-business are often used as interchangeable terms. E-business is a broader term that refers to all areas of your e-business strategy — from marketing, finance, and legal issues to sales—while e-commerce refers exclusively to the transactional component.

• EDI
  

  (electronic data interchange) Exchange of computer-readable data in a standard format (e.g., purchase orders, invoices, confirmations, bills of lading) between business partners.

  EDI has been around for almost 30 years in the non-Internet environment. Well-known retailers, such as The Home Depot, Toys R Us, and Wal-Mart use EDI as an integral element of their business strategy.

• EDIFACT
  

  (Electronic Data Interchange For Administration, Commerce and Transport)

• EFT
  

  (electronic funds transfer) Electronic transfer of account exchange information over secure private communication networks.

• e-learning
  

  Use of the Internet to enhance teaching and learning styles. E-learning allows for collaboration, personalized learning options, distance learning, and self-study.

• electronic data interchange
  

  (See EDI)

• e-mail
  

  (electronic mail) Messages that are sent from one user to another (or multiple recipients) via e-mail programs (e.g., Microsoft Outlook, Eudora, Mail). There are also web-based mail services like AOL, Hotmail, Yahoo, and literally hundreds of others.

• e-marketing
  

  E-marketing is the promotion of a product, company, service, or web site online. E-marketing can include a variety of activities from online advertising, e-mail marketing, search engine optimization (improving the ranking of web sites on search engine results) to online networking.

• e-marketplace
  

  A system that enables multiple buyers and suppliers to interact and transact online.

• encryption
  

  Translation of data into a secret code. To decrypt and read an encrypted file, you need to have access to a secret key or password.

• e-procurement
  

  Online purchasing of goods and services through a web interface.

• ERP
  

  (enterprise resource planning) Business software that integrates all facets of a business, including planning, manufacturing, sales, and marketing. As businesses grow, functional silos and incompatibilities between systems develop. ERP software helps break eliminate these silos.

• ETA
  

  (Electronic Transactions Act) Alberta legislation related to e-commerce.

• e-tailing
  

  Selling products or services online.

• extranet
  

  A secure extension of a company’s intranet that allows business partners to access specific company data. A username and password would be required to gain access to information, such as training manuals, pricing and promotional materials, and operations plans.

• e-zine
  

  Internet magazine.

F

• FAQ
  

  (Frequently asked questions) The FAQ section of your web site provides answers to common questions related to your business.

• firewall
  

  Hardware or software that prevents unauthorized users from gaining access to a private network. The firewall acts almost as a traffic cop that examines and blocks messages that do not conform to the local security policy.

• Flash
  

  Have you seen animated graphics or cartoons on the Internet? Chances are they were built using Macromedia Flash, a vector-based animation technology.

  To view Flash files, users will need to download the free Flash plug-in for their browser.

• FTP
  

  (File Transfer Protocol) For a web site to be available on the Internet, you will need to plan, design, and program the web site and then transfer the files to a web host’s server. FTP is most commonly used to download files from a server or upload web pages and documents to a server.

G

• gateway
  

  A gateway computer determines the best path for data to travel on the Internet.

• GIF
  

  (Graphic Interchange Format) Pronounced giff or jiff. A compressed bit-mapped image format that supports 256 colours. Scanned images and illustrations are commonly saved as GIFs.

  JPEGs are the image format of choice for photos on the Internet.

• GUI
  

  (Graphical User Interface) Pronounced goo-ee. The GUI is the interface with which the client interacts. The GUI would include the navigation, buttons, graphic display, layout, design, and functionality.

  Your web site’s GUI should be intuitive and easy to use.

H

• hacker
  

  The term hacker was originally coined to refer to computer enthusiasts. In the late 1980s, however, the media used the term to describe anyone who broke into a computer system without permission.

• hit
  

  The retrieval of any item, such as web pages or graphics, from a web server. Hits are a poor measurement of web traffic. For example, if you load a web page that has five graphics on it, the site would record six hits (five graphics and one page file).

  It gets a little more complicated because you may actually be storing these graphics in your Internet cache, which means you wouldn’t have requested any files from the web server.

  Unique visitors, visitor sessions, file downloads, and average user session length provide far more useful data.

• horizontal portal
  

  (Also called a hortal, horizontal marketplace, and horizontal exchange) A marketplace that sells products and/or services that can be used in several industries such as office supplies and MROs (maintenance, repairs, and operations items).

• HTML
  

  (HyperText Markup Language) A simple scripting language used to create web pages. HTML defines the structure and layout of a web page by using a variety of tags and attributes (e.g., Bold tags).

• HTTP
  

  (HyperText Transfer Protocol) The Internet protocol responsible for transferring and displaying web pages. Through HTTP web servers and web browsers are able to communicate with each other.

• hyperlink
  

  An HTML tag that allows you to click on some text or an image and link within the document or to another document or web page. Hyperlinks are the most essential ingredient of the World Wide Web.

I

• ICANN
  

  (Internet Corporation for Assigned Names and Numbers) The non-profit corporation that was formed to assume responsibility for the IP address space allocation, protocol parameter assignment, domain name system management, and root server system management functions previously performed under U.S. Government contract by IANA and other entities.

• integration
  

  Refers to how well your web site integrates with legacy (old), database systems, financial systems, your offline strategy, your corporate culture, and proprietary third-party software and application service providers (ASPs).

• intellectual property
  

  Intellectual property refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce. Intellectual property issues associated with e-business include technology and content transfer licensing, copyright, trade-marks, domain names, trade secrets, and patents.

• intermediaries
  

  A third party between sellers and buyers (e.g., retailers, wholesalers, distributors, agents).

• Internet
  

  A self-regulated network connecting millions of computer networks around the globe.

• Internet auction
  

  There are several types of online auctions:

  English: Items sold to the highest bidder (also called ascending-price auction or open-outcry auction)

  Dutch: Bidding starts at a high price and drops until a bidder accepts a price (also called descending-price auctions). Popular for perishable food items

  Sealed-bid: Bidders submit their bids independently. The first (first-price sealed-bid auction) or second highest bidder wins (Vickrey auction)

  Yankee: Seller offers multiple identical items with a minimum bid. Winners pay the exact price of their winning bid.

• Internet directory
  

  Collection of data organized by topic (e.g., painters, universities, e-business providers, and so on).

  The key difference between getting listed in a directory or search engine is the human interaction. To be listed in a directory, you would request a listing and someone would approve it. Search engine, on the other hand, send out web robots to index and categorize millions of web sites.

• Internet marketing
  

  (Also e-marketing and IM) Marketing deals with the 4 Ps of your business: product, price, place, and promotion. Add an Internet element, and you’re involved in Internet marketing.

  Internet marketing can offer lower costs, increased tracking and measurability, 1:1 marketing (mass customization), and more interactivity.

  Here are some common e-marketing topics:

  • Search engine marketing
  • Banner advertising
  • Permission-based e-mail marketing
  • E-newsletters
  • E-zine advertising
  • Affiliate marketing
  • Viral marketing
  • Online PR (publication relations) & media relations

• Internet presence
  

  An Internet presence is a combination of:

  • a well-designed web site
  • ongoing site promotion
  • use of the Internet as a communications
  • medium with your customers
  • use of web tools and applications (e.g., e-mail)

• Internet registrar
  

  Usually not-for-profit organizations that operate top-level domains. CIRA.ca, for example, is the Internet registrar that operates the dot-ca (.ca) top-level domain.

  Your first step is to determine whether a particular domain names is available by searching the Internet registrar’s WHOIS database. Your next best bet is to conduct a trade-mark search.

• interoperability
  

  The ability of software and hardware on different machines from different vendors to share data.

• intranet
  

  A computer network operated within a single company or organization. An intranet’s web site usually shares information on operations, marketing, accounting, projects and initiatives, and client databases. Access is limited to company employees or others with authorization.

• IP address
  

  (Internet Protocol) IP by itself is something like the postal system. It allows you to address a package to be sent to another computer connected to the Internet.

• ISDN
  

  (Integrated Services Digital Network) High-grade telephone service that uses the DSL protocol to send voice, video, and other data over digital telephone lines or normal telephone wires. ISDN supports data transfer rates of up to 128 Kbps.

• ISP
  

  (Internet Service Provider) A company that provides you with access to the Internet for a monthly fee. If you have a modem and an account with your ISP, you will soon be browsing the web, sending e-mail, and buying online.

• IT
  

  (information technology) Broad subject related to managing and processing information within a company. IT staff include network administrators, database developers, web developers, consultants, security experts, and other computer professionals.

J

• JPEG
  

  (Joint Photographic Experts Group) Pronounced jay-peg. JPEG is a lossy compression technique that can reduce file sizes to about 5% of their original. This is the most common file format for pictures on the Internet.

  See also GIF.

L

• LAN
  

  (local area network) A small network of computers usually confined to a single building. Files can be shared through LANs, as well as peripheral devices, like laser printers and scanners. Several LANs can be connected via telephone lines, and you’ve got a WAN (wide area network).

• localization
  

  The process of adapting your web site for a particular country, taking into account local dialect variations, business and cultural practices, and other factors.

M

• META tags
  

  A special HTML tag that provides information about a web page. Unlike normal HTML tags, meta tags do not affect how the page is displayed. Instead, they provide information such as who created the page, how often it is updated, what the page is about, and which keywords represent the page's content.

• middleware
  

  Middleware acts as the glue between two different applications. It connects two different applications and passes data between them.

• mobile commerce
  

  (Also m-commerce) E-business in a wireless environment. For example, you might access resources such as stock quotes, directions, weather forecasts, and airline flight schedules through a wireless laptop or telephone.

• modem
  

  A modem is a device that enables your computer to send and receive data over telephone or cable lines. You will need a modem to get connected to the Internet.

• MRO
  

  (maintenance, repair, and operations supplies) Indirect materials, such as light bulbs or office supplies, used by most businesses in relatively small quantities.

N

• NDA
  

  (Non-disclosure agreement) A contract that restricts the disclosure of confidential information or proprietary knowledge under specific circumstances. Non-disclosure agreements are often signed by companies discussing a potential partnership or by new employees.

• network
  

  A group of two or more computers that are linked together. Computers on a network are sometimes called nodes. Computers that allocate resources for a network are called servers.

• nonrepudiation
  

  Verification that a transaction occurred. This prevents people denying a transaction’s validity or its existence.

O

• one-to-one marketing (1:1 marketing)
  

  A highly customized approach to offering products and services that match the needs of a particular customer.

• open source
  

  Software that can be downloaded and modified free of charge.

• operating system
  

  (OS) An operating system is the master control program of the computer. All programs must “talk” to the OS in order to run. It provides the user interface needed to adjust system settings, recognize input from the keyboard and mouse, and send output to the display screen.

  There are single-user OSs, such as DOS, Windows, and Mac OS X, as well as multi-user network operating systems you may have heard about like Windows NT, UNIX, and Linux.

• opt-in e-mails
  

  See permission-based marketing.

• order fulfillment
  

  All of the processes and systems required to deliver a product or service to a customer after the order has been received.

• outsourcing
  

  The hiring of another company to take care of part of your business processes (e.g., payroll, legal, web development, design, order fulfillment).

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