8. The Internet: Electronic Commerce & Electronic Business

THE INTERNET It began as government connection of universities. Internet service provider (isp): Organization that has a permanent connection to the Internet and sells (leases) temporary connections to subscribers. No one owns it, no formal organization owns it. There is no no formal central control. It is based on the TCP/IP reference model.

INTERNET CAPABILITIES E -MAIL: person -to-person messaging; document sharing USERNET NEWSGROUPS: Worldwide discussion groups. People can post messages on any topic on an electronic bulletin boards for discussion groups. LISTSERVs: If you find any LISTSERV topic interesting, you can subscribe. From then on, you will get all information about this topic through e-mail. CHATTING: It allows interactive conversations TELNET: It allows to log on one computer, work on another. FTP: It allows to transfer files from computer to computer GOPHERS: It allows user to locate information stored on Internet gopher servers using menus.

INTERNET CAPABILITIES ARCHIE: Search database for files to download. VERONICA: Veronica is an additional capability for 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

INDIVIDUAL OR ORGANIZATION NAME INTERNET ADDRESS ggalileo@univpisa.edu.it INDIVIDUAL OR ORGANIZATION NAME HOST COMPUTER DOMAIN LOCATION DOMAIN NAME

INTERNET TERMS HOME PAGE: WWW screen display that welcomes the user and explains the organization. WEBMASTER: person in charge of Web site UNIFORM RESOURCE LOCATOR (URL): address of specific Internet resource

INTERNET TERMS HYPERTEXT TRANSPORT PROTOCOL (http): communications standard (sets of rules) used to transfer Web pages HYPERTEXT MARKUP LANGUAGE (HTML): popular programming language for creating Web sites

SURFING THE NET SEARCH ENGINE: tool for locating specific sites or information on WWW. Examples: AltaVista & Lycos “PUSH” TECHNOLOGY: Method of getting relevant info. on networks by having a computer broadcast info directly to the user. Server streams Web page content from a Web server to a Web browser HYPERLINK: spot on screen, when clicked shifts to a new page or site.

INTRANET Internal network WWW technology Firewall: security system (consists of hardware and software placed between an organization’s internal network and an external network, including the internet) to prevent invasion of private networks. Overcomes computer platform differences Often installed on existing network infrastructure

EXTRANET It allows authorized users outside organization to use its intranet. Authorized users can: Customers business partners vendors

EXTRANET DATABASES CUSTOMER SERVER FIREWALL SUPPLIER BUSINESS PARTNER INTERNET SUPPLIER FIREWALL SERVER BUSINESS PARTNER CLIENTS

INTERNET BENEFITS Increases global connectivity Reduces communications cost Lower transaction costs Reduces agency costs Increases interactivity, flexibility, customization Accelerates knowledge

INTERNET & ELECTRONIC COMMERCE Easy to link with other businesses, customers. Can update product information, ordering, customer support On-line storefronts Enhances business forms

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

INTERNET & ELECTRONIC COMMERCE DISINTERMEDIATION Cost/Shirt Manufacturer Distributor Retailer Customer $48.50 Manufacturer Distributor Retailer Customer $40.34 Manufacturer Distributor Retailer Customer $20.45

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

INTERNET BUSINESS MODELS TRANSACTION BROKER: buyers view rates, terms from various sources ELECTRONIC CLEARINGHOUSE: auction-like setting, products, prices, change in response to demand

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

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

INTRANETS AND ELECTRONIC BUSINESS Electronic commerce services Benefits Group collaboration Functional applications Supply chain management

ELECTRONIC COMMERCE SERVICES: 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)

ELECTRONIC COMMERCE SERVICES: 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)

BENEFITS OF INTRANETS: Increases connectivity Can be tied to legacy system & transaction processing Interactive applications with text, audio, video Scalable to larger or smaller systems as required

BENEFITS OF INTRANETS: Easy to use browser interface Low start-up costs Rich, responsive information environment Reduced information distribution costs

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

FUNCTIONAL APPLICATIONS: Finance & accounting Human resources Sales & marketing Manufacturing & production

FINANCE & ACCOUNTING: General ledger reporting Project costing Annual reports Budgeting

HUMAN RESOURCES: Corporate policies Employee savings plans Benefits enrollment On-line training Job posting

SALES & MARKETING: Competitor analysis Price updates Promotional campaigns Sales presentations Sales contracts

MANUFACTURING & PRODUCTION: Quality measurements Maintenance schedules Design specifications Machine output Order tracking

SUPPLY-CHAIN MANAGEMENT MARKETING & SALES PRODUCTION PLANNING CUSTOMER SERVICE PROCUREMENT INTRANET CUSTOMERS INVENTORY ACCOUNTING & FINANCE SHIPPING & DISTRIBUTION PRODUCTION & MANUFACTURING

CHALLENGES & OPPORTUNITIES Unproven business models Business process change requirements Channel conflicts Technology hurdles Legal issues Security & privacy