Rochester Institute of
MEMORANDUM
TO: Jack Cook, Associate Professor
FROM: Liying Wu, Federico
DATE: January 14, 2005
RE: Milestone 3, Paper Subtopic Selection (Digital Money)
Subtopic 1 (W.L.Y.): How should companies evaluate and choose digital money?
Research Questions: What specific utilities of digital money should companies focus on to choose the kind of digital money?
Intended Audience: CIOs and CFOs who are looking for the possibility in implementing digital money.
Possible Hypothesis: The positively impacts on company financial productivity through digital money
Journals: ACM Database
IEEE on Internet Banking
Electronic Markets -- International Journal of Electronic
Commerce and Business Media
Description:
Internet technology has created a new technology platform for doing business around the world and creating new business processes among the firms. Electronic commerce is a new transforming business process. It brings many new benefits and opportunities; but it also creates many new challenges. Electronic payment systems have been developed to pay for goods electronically on the Internet. Any firm who wants to sell products on this platform will need to select an electronic payment system that best fits it needs.
There are many different electronic payment systems in existence such as digital wallet, digital credit payment system, micropayment, smart card and the peer-to-peer payment system. The issue with electronic payment systems is that there are many independently operated platforms and companies do not have a full understanding of each one’s features, capabilities and costs.
In an effort to provide the correct type and level of service to the growing number of Internet businesses, we will analyze several of the electronic payment systems available in the digital marketplace. This in depth analysis will provide the management of Internet business with a better understanding of the advantages and disadvantages of each payment system. Based on needs of each company, their management should be able to determine which electronic payment system would be the best one for their particular needs.
Small companies will use simpler, less expensive payment systems. Large companies will use more complicated and sophisticated payment systems. Security and privacy will be the major two issues in the selection of which payment system to employ. Overall, we expect to help companies select the best electronic payment system that would allow them to conduct their business in the efficient, safe, secure and effective manner.
Subtopic 2 (F.F.E.): Why digital money is important and essential in keeping buyers anonymity and privacy when taking part in eCommerce or eBusiness?
Research Questions: What specific security, privacy, and safety features will digital money provide compared to traditional electronic and digital payment schemes?
Intended Audience: CIOs and CFOs who are looking at the possibility of implementing digital money.
Possible Hypothesis: Banks, financial institutions, merchants, clearing houses, and other firms might loose possible revenues if this technology is not adapted and implemented in conducting eCommerce or eBusiness.
Journals: ACM Database
IEEE on Internet Banking
The Computer Society
Description:
Today’s digital marketplace is becoming more insecure each and everyday. Mechanisms to provide customer’s anonymity and privacy while still maintaining proper payment schemes must be developed and introduced. Profits and sales could be lost if firms are not ready to respond to a new demand from customers requiring more secure means of transacting business and keeping their intellectual property safe along with their money.
Digital cash is a technology that can provide both customers and service providers with a solution to not only privacy issues but also help in stopping illegal distribution of intellectual property. By using digital cash, banks and other financial institutions can provide an additional service to its customers to make up for transaction fees that might no longer be needed to conduct eCommerce.
Digital does have a few technical and system glitches that need to be worked out in order to perform well, our paper will examine these issues at a deeper level, trying to determine how firms and customers alike can benefit mutually from this technology.
Expected Results:
The research approach/method we will be using is an evaluative deductive one, along with literature review and analysis. We expect to find out that digital cash systems will grow in demand and that primarily banks and financial institutions will be the first to adopt these new payment systems in order to make up for lost profits and revenues from transaction fees no longer in demand by customers.
In conclusion, our team feels that this subject is of important relevance to the way businesses will be conducted over digital channels in the near future and further research must take place in order to predict key trends in the electronic and digital marketplace.
FEF: ff
WLY: lw