9. THE INTERNET: ELECTRONIC COMMERCE, ELECTRONIC BUSINESS

1
10. THE INTERNET ELECTRONIC COMMERCE
ELECTRONIC BUSINESS
10.1
2
LEARNING OBJECTIVES

• DESCRIBE INTERNET, ITS CAPABILITIES
• IDENTIFY INTERNET BENEFITS TO ORGANIZATIONS
• DEMONSTRATE HOW INTERNET USED FOR ELECTRONIC
  COMMERCE

10.2
3
LEARNING OBJECTIVES

• DEMONSTRATE HOW INTERNET TECHNOLOGY USED FOR
  INTRA- AND INTERORGANIZATIONAL ELECTRONIC
  BUSINESS
• EXAMINE CHALLENGES OF INTERNET TO BUSINESS
  SOCIETY

10.3
4
MANAGEMENT CHALLENGES

• THE INTERNET
• INTERNET ELECTRONIC COMMERCE
• INTRANETS ELECTRONIC BUSINESS
• CHALLENGES OPPORTUNITIES

10.4
5
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

10.5
6
INTERNET CAPABILITIES

• 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

10.6
7
INTERNET ADDRESS
http//www.prenhall.com/laudon
10.7
8
INTERNET TERMS

• HOME PAGE WWW screen display welcomes user to
  organizations page
• WEBMASTER person in charge of Web site
• UNIFORM RESOURCE LOCATOR (URL) address of
  specific Internet resource

10.8
9
INTERNET TERMS

• HYPERTEXT TRANSPORT PROTOCOL (http)
  communications standard used to transfer Web
  pages
• HYPERTEXT MARKUP LANGUAGE (HTML) popular
  programming language for creating Web sites

10.9
10
SURFING THE NET

• SEARCH ENGINE tool for locating specific sites
  or information on WWW
• PORTAL point of entry to WWW
• PUSH TECHNOLOGY server streams relevant
  content to browser
• MULTICASTING sending data to select group

10.10
11
INTRANET

• INTERNAL NETWORK
• WWW TECHNOLOGY
• FIREWALL Security System to Prevent Invasion of
  Private Networks
• OVERCOMES COMPUTER PLATFORM DIFFERENCES
• OFTEN INSTALLED ON EXISTING NETWORK
  INFRASTRUCTURE

10.11
12
EXTRANET

• ALLOWS SELECT USERS OUTSIDE ORGANIZATION TO USE
  ITS INTRANET
• CUSTOMERS
• BUSINESS PARTNERS
• VENDORS

10.12
13
EXTRANET
10.13
14
INTERNET BENEFITS

• GLOBAL CONNECTIVITY
• REDUCED COMMUNICATIONS COST
• LOWER TRANSACTION COSTS
• REDUCED AGENCY COSTS
• INTERACTIVITY, FLEXIBILITY, CUSTOMIZATION
• ACCELERATED KNOWLEDGE

10.14
15
INTERNET ELECTRONIC COMMERCE

• EASY TO LINK WITH OTHER BUSINESSES, CUSTOMERS
• CAN UPDATE PRODUCT INFORMATION, ORDERING,
  CUSTOMER SUPPORT
• ON-LINE STOREFRONTS
• ENHANCED BUSINESS FORMS

10.15
16
INTERNET ELECTRONIC COMMERCE

• CUSTOMER-CENTERED RETAILING
• DISINTERMEDIATION removal of intermediate layers
  streamlines process
• REDUCED COST TO BUYER, SELLER
• HIT each request for a file recorded in log file

10.16
17
INTERNET BUSINESS MODELS

• VIRTUAL STOREFRONT sells goods, services on-line
• MARKETPLACE CONCENTRATOR concentrates
  information from several providers
• INFORMATION BROKER provides product, pricing,
  availability information

10.17
18
INTERNET BUSINESS MODELS

• TRANSACTION BROKER buyers view rates, terms
  from various sources
• ELECTRONIC CLEARINGHOUSE auction-like setting,
  products, prices, change in response to demand
• REVERSE AUCTION buyer sets price, submits to
  multiple sellers

10.18
19
INTERNET BUSINESS MODELS

• DIGITAL PRODUCT DELIVERY sell, download
  software, other digital products
• CONTENT PROVIDER creates revenue through
  providing client for a fee, and advertising
• ON-LINE SERVICE PROVIDER provides service,
  support for hardware, software products

10.19
20
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

10.20
21
INTRANETS AND ELECTRONIC BUSINESS

• ELECTRONIC COMMERCE SERVERS
• BENEFITS
• GROUP COLLABORATION
• FUNCTIONAL APPLICATIONS
• SUPPLY CHAIN MANAGEMENT

10.21
22
ELECTRONIC COMMERCE SERVERS

• ICAT on-line catalog shopping, order placement
  (Icat)
• NET.COMMERCE merchant server supporting Secure
  Electronic Transactions protocol (IBM)
• MerchantXpert search tools, order management,
  tax, payment, logistics modules (Netscape)

10.22
23
ELECTRONIC COMMERCE SERVICES

• OPEN MARKET TRANSACT customer authentication,
  order payment processing, tax, multi-language
  customer service (Open Market)
• INTERNET COMMERCE SERVER integrates orders,
  inventory, customer service, payments (Oracle)

10.23
24
BENEFITS OF INTRANETS

• CONNECTIVITY
• CAN BE TIED TO LEGACY SYSTEM TRANSACTION
  PROCESSING
• INTERACTIVE APPLICATIONS WITH TEXT, AUDIO, VIDEO
• SCALABLE TO LARGER OR SMALLER SYSTEMS AS REQUIRED

10.24
25
BENEFITS OF INTRANETS

• EASY TO USE BROWSER INTERFACE
• LOW START-UP COSTS
• RICH, RESPONSIVE INFORMATION ENVIRONMENT
• REDUCED INFORMATION DISTRIBUTION COSTS

10.25
26
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

10.26
27
FUNCTIONAL APPLICATIONS

• FINANCE ACCOUNTING
• HUMAN RESOURCES
• SALES MARKETING
• MANUFACTURING PRODUCTION

10.27
28
FINANCE ACCOUNTING

• GENERAL LEDGER REPORTING
• PROJECT COSTING
• ANNUAL REPORTS
• BUDGETING

10.28
29
HUMAN RESOURCES

• CORPORATE POLICIES
• EMPLOYEE SAVINGS PLANS
• BENEFITS ENROLLMENT
• ON-LINE TRAINING
• JOB POSTING

10.29
30
SALES MARKETING

• COMPETITOR ANALYSIS
• PRICE UPDATES
• PROMOTIONAL CAMPAIGNS
• SALES PRESENTATIONS
• SALES CONTRACTS

10.30
31
MANUFACTURING PRODUCTION

• QUALITY MEASUREMENTS
• MAINTENANCE SCHEDULES
• DESIGN SPECIFICATIONS
• MACHINE OUTPUT
• ORDER TRACKING

10.31
32
SUPPLY-CHAIN MANAGEMENT
10.32
33
CHALLENGES OPPORTUNITIES

• UNPROVEN BUSINESS MODELS
• BUSINESS PROCESS CHANGE REQUIREMENTS
• CHANNEL CONFLICTS
• TECHNOLOGY HURDLES
• LEGAL ISSUES
• SECURITY PRIVACY

10.33