M.Sc. (Computer Science) / The terms "Electronic Commerce" and "Internet Commerce" are often used interchangeably to mean similar processes. By definition, electronic commerce (e-commerce) means any exchange of information that occurs electronically. There are various types of electronic commerce transactions to name a few; electronic data interchange (EDI), fax, electronic funds transfer, interorganisational systems, technical data and document exchange, customer credit approval systems, interaction with customers and vendors, etc ([151, p. 27). The term internet commerce evolved with the era of the Internet. It became evident that both business and consumers are gradually conducting business via the Internet. For the purpose of this dissertation the term e-commerce will be used to refer to both electronic commerce and Internet commerce. The aim of this dissertation is to give guidance to organisations or individuals wishing to build a secure electronic commerce environment. This will be achieved by presenting an incremental phase by phase reference model. The model gives guidance on how to establish a network (local area network) with the intention to expand it through various phases to a complete, secure electronic commerce environment in the future. The dissertation will be discussed in the ten chapters outlined below. These chapters are discussed in detail in chapter 1. Chapter 1 sets out the problem addressed in this dissertation, the main objective of the dissertation and its structure. Chapter 2 introduces the framework of the reference model. It presents the different phases of the e-commerce reference model. Chapters 3 to 8 outline the phases of the e-commerce reference model in detail.