Transcript Ch9 (L): The Internet: EC & EB

L Ch8: Internet
Learning Objectives
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DESCRIBE INTERNET, ITS CAPABILITIES
DEMONSTRATE HOW INTERNET USED FOR
ELECTRONIC COMMERCE
DEMONSTRATE HOW INTERNET
TECHNOLOGY USED FOR INTRA- AND
INTERORGANIZATIONAL ELECTRONIC
BUSINESS
CHALLENGES OF INTERNET TO BUSINESS &
SOCIETY
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THE INTERNET
BEGAN AS GOVERNMENT
CONNECTION OF UNIVERSITIES
 INTERNET SERVICE PROVIDER (ISP):
organization connected to Internet, leases
temporary connections to subscribers
 NO ONE OWNS IT, NO FORMAL
ORGANIZATION
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INTERNET CAPABILITIES
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E -MAIL: person -to-person messaging; document
sharing
USERNET NEWSGROUPS: electronic bulletin boards
for discussion groups
LISTSERVs: e-mail list servers for discussion groups
CHATTING: interactive conversations
TELNET: log on one computer, work on another
FTP: transfer files from computer to computer
GOPHERS: use menus to locate text material
ARCHIE: search database for files to download
VERONICA: speeds searching gopher sites by using keywords
WIDE AREA INFORMATION SERVICE (WAIS): locates files using
key words
WORLD WIDE WEB: retrieve, format, display information (text, audio,
graphics, video) using hypertext links
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INTERNET TERMS
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HOME PAGE:
• WWW screen display welcomes user to organization’s page
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WEBMASTER:
• person in charge of Web site
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UNIFORM RESOURCE LOCATOR (URL):
• address of specific Internet resource
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HYPERTEXT TRANSPORT PROTOCOL (http):
• communications standard used to transfer Web pages
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HYPERTEXT MARKUP LANGUAGE (HTML):
• popular programming language for creating Web sites
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SEARCH ENGINE:
• tool for locating specific sites or information on WWW
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“PUSH” TECHNOLOGY:
• server streams relevant content to browser automatically.
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Channel: Stream of info distributed thru PUSH technology.
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HYPERLINK: spot on screen, when clicked shifts to a new page or site
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INTRANET
 INTERNAL NETWORK
 WWW TECHNOLOGY
 FIREWALL:
Security System to Prevent
Invasion of Private Networks
 OVERCOMES COMPUTER PLATFORM
DIFFERENCES
 OFTEN INSTALLED ON EXISTING
NETWORK INFRASTRUCTURE
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EXTRANET
ALLOWS SELECT USERS OUTSIDE
ORGANIZATION TO USE ITS INTRANET:
 CUSTOMERS
 BUSINESS PARTNERS
 VENDORS
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EXTRANET
DATABASES
CUSTOMER
SUPPLIER
INTERNET
FIREWALL
SERVER
BUSINESS
PARTNER
CLIENTS
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INTERNET BENEFITS
GLOBAL CONNECTIVITY
 REDUCED COMMUNICATIONS COST
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• Internet Telephony (IP telephony)
LOWER TRANSACTION COSTS
 REDUCED AGENCY COSTS
 INTERACTIVITY, FLEXIBILITY,
CUSTOMIZATION
 ACCELERATED KNOWLEDGE
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INTERNET & ELECTRONIC COMMERCE
EASY TO LINK WITH OTHER
BUSINESSES, CUSTOMERS
 CAN UPDATE PRODUCT INFORMATION,
ORDERING, CUSTOMER SUPPORT
 ON-LINE STOREFRONTS
 ENHANCED BUSINESS FORMS
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INTERNET & ELECTRONIC
COMMERCE
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CUSTOMER-CENTERED RETAILING
• DISINTERMEDIATION: removal of
intermediate layers streamlines process
• REDUCED COST TO BUYER, SELLER
• Example modes:
– Direct sales over web.
– Interactive marketing
– Customer self-service
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HIT: each request for a file recorded in log
file
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INTERNET BUSINESS MODELS
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VIRTUAL STOREFRONT:
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MARKETPLACE CONCENTRATOR:
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INFORMATION BROKER:
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TRANSACTION BROKER:
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ELECTRONIC CLEARINGHOUSE:
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REVERSE AUCTION
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DIGITAL PRODUCT DELIVERY:
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CONTENT PROVIDER:
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ON-LINE SERVICE PROVIDER:
• sells goods, services on-line
• concentrates information from several providers
• provides product, pricing, availability information
• buyers view rates, terms from various sources
• auction-like setting, products, prices, change in response to demand
• Customer submit a bid to multiple sellers to buy goods or services at
a buyer-specified price.
• sell, download software, other digital products
• creates revenue through providing client for a fee, and advertising
• provides service, support for hardware, software products
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ELECTRONIC COMMERCE SUPPORT
SYSTEMS
WEB HOSTING SERVICES: provides large
servers for Web sites of fee-paying customer
 ELECTRONIC PAYMENT SYSTEM: using
Web for electronic funds transfers, credit ,
smart & debit cards
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INTRANETS AND ELECTRONIC
BUSINESS
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ELECTRONIC COMMERCE SERVICES
• B2B: Business to business (EDI)
• B2C: Business to customers
BENEFITS
 GROUP COLLABORATION
 FUNCTIONAL APPLICATIONS
 SUPPLY CHAIN MANAGEMENT
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ELECTRONIC COMMERCE SERVICES:
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ICAT: on-line catalog shopping, order placement
(Icat)
NET.COMMERCE: merchant server supporting
Secure Electronic Transactions protocol (IBM)
MERCHANT SERVER: templates for storefronts,
point-of-sales software (Microsoft)
MERCHANT SYSTEM: full set of retailing
services (Netscape)
OM-TRANSACT: modular structure for payment
schemes (Open Market)
PC-CHARGE: PC-based Web server credit card
processing (Go Software)
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BENEFITS OF INTRANETS:
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CONNECTIVITY
CAN BE TIED TO LEGACY SYSTEM &
TRANSACTION PROCESSING
INTERACTIVE APPLICATIONS WITH TEXT,
AUDIO, VIDEO
SCALABLE TO LARGER OR SMALLER
SYSTEMS AS REQUIRED
EASY TO USE BROWSER INTERFACE
LOW START-UP COSTS
RICH, RESPONSIVE INFORMATION
ENVIRONMENT
REDUCED INFORMATION DISTRIBUTION
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COSTS
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GROUP COLLABORATION:
TEAMWARE: intranet-based applications
allow teams to share ideas, documents,
brainstorming, scheduling. Similar to chat
room.
 INTERNAL NEWSLETTER
 ABILITY TO WORK AT HOME
 SHARE INTERNET DISCOVERIES WITH
COLLEAGUES
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FUNCTIONAL APPLICATIONS:
FINANCE & ACCOUNTING
 HUMAN RESOURCES
 SALES & MARKETING
 MANUFACTURING & PRODUCTION
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FINANCE & ACCOUNTING:
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GENERAL LEDGER REPORTING
PROJECT COSTING
ANNUAL REPORTS
BUDGETING
HUMAN RESOURCES:
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CORPORATE POLICIES
EMPLOYEE SAVINGS PLANS
BENEFITS ENROLLMENT
ON-LINE TRAINING
JOB POSTING
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SALES & MARKETING:
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COMPETITOR ANALYSIS
PRICE UPDATES
PROMOTIONAL CAMPAIGNS
SALES PRESENTATIONS
SALES CONTRACTS
MANUFACTURING & PRODUCTION:
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QUALITY MEASUREMENTS
MAINTENANCE SCHEDULES
DESIGN SPECIFICATIONS
MACHINE OUTPUT
ORDER TRACKING
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SUPPLY-CHAIN MANAGEMENT
CUSTOMERS
MARKETING
& SALES
PRODUCTION
PLANNING
CUSTOMER
SERVICE
PROCUREMENT
INTRANET
ACCOUNTING &
FINANCE
INVENTORY
PRODUCTION &
MANUFACTURING
SHIPPING &
DISTRIBUTION
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CHALLENGES & OPPORTUNITIES
UNPROVEN BUSINESS MODELS
 BUSINESS PROCESS CHANGE
REQUIREMENTS
 CHANNEL CONFLICTS
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• Own brand & OEM
• Distributors & Direct sales
TECHNOLOGY HURDLES
 LEGAL ISSUES
 SECURITY & PRIVACY
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