Chapter 5 A New Medium of Communication E-commerce and Information Technology in Hospitality and Tourism Copyright 2004 by Zongqing Zhou, PhD Niagara University

LEARNING OBJECTIVES After you complete your study of this chapter, you should be able to: After you complete your study of this chapter, you should be able to: Understand why the Internet is a new medium of communication. Understand why the Internet is a new medium of communication. Know the different Internet communication platforms. Know the different Internet communication platforms. Understand what Intranets can do to enhance communication inside a business. Understand what Intranets can do to enhance communication inside a business. Explain the difference between Intranets and Extranets. Explain the difference between Intranets and Extranets. Know the various kinds of Internet communication tools. Know the various kinds of Internet communication tools.

5.1 Introduction Three major barriers to communication Three major barriers to communication Time Time Speed Speed Space Space Improving communication to: Improving communication to: Increase understanding Increase understanding Effectiveness of socialization Effectiveness of socialization Accumulation of knowledge Accumulation of knowledge

5.2 The Internet: A New Medium of Communication Virtual communities or e-communities Virtual communities or e-communities A way to communicate with people from all over the world, from the safety and security of your own home. A way to communicate with people from all over the world, from the safety and security of your own home. Today’s businesses are following the technology trends and are updating their systems and services to better suit the needs of the consumer. Today’s businesses are following the technology trends and are updating their systems and services to better suit the needs of the consumer. Example: International e-Commerce, Inc. has integrated its advanced interactive television services with core hotel services to deliver broadband Internet to each hotel room- interactive TV, e-commerce, e- mail and videos on demand, as well as room service, housekeeping, and checkout, all from the guest Television in their room. Example: International e-Commerce, Inc. has integrated its advanced interactive television services with core hotel services to deliver broadband Internet to each hotel room- interactive TV, e-commerce, e- mail and videos on demand, as well as room service, housekeeping, and checkout, all from the guest Television in their room.

5.3. Internet Communications Platforms Applications of Internet communications Applications of Internet communications Intranets Intranets B2B online (and through VPN, virtual private network) B2B online (and through VPN, virtual private network) B2C online. B2C online. C2C online C2C online C2B online C2B online

5.3 Internet Communications Platforms (cont.) The purpose of Internet Communication for business: The purpose of Internet Communication for business: Sales and marketing Sales and marketing Human resource management (online manuals, forms and directories, and recruitment, and application) Human resource management (online manuals, forms and directories, and recruitment, and application) Manufacturing and operations Manufacturing and operations Customer service and support Customer service and support Finance and accounting Finance and accounting Customer service Customer service Customer relationship management (CRM) Customer relationship management (CRM) Public relations and information distribution Public relations and information distribution Employee knowledge sharing and dissemination Employee knowledge sharing and dissemination Employer-employee communication Employer-employee communication

Classification: Classification: Internet (communication within the business) Internet (communication within the business) Extranet and Internet (B2B communication, B2B online and/or through VPN) Extranet and Internet (B2B communication, B2B online and/or through VPN) Internet and Extranet: (B2C online, C2B and C2C) Internet and Extranet: (B2C online, C2B and C2C) Examples: Examples: Putting forms on the internet, web-based discussion forum, live chat. Putting forms on the internet, web-based discussion forum, live chat. Information sharing, collaboration, customer service, B2B transactions. Information sharing, collaboration, customer service, B2B transactions. Communication and E- commerce Communication and E- commerce

5.4 Intranet: Enabling Communications Inside A Business EXTRANET: B2B AND B2C COMMUNICATIONS EXTRANET: B2B AND B2C COMMUNICATIONS An Extranet is a private network that not only connects to the Internet but also uses the same special set of rules (protocol) for communication. It can be considered part of a company’s Intranet that is extended to users outside the company. An Extranet is a private network that not only connects to the Internet but also uses the same special set of rules (protocol) for communication. It can be considered part of a company’s Intranet that is extended to users outside the company. The purpose of an Extranet is to securely share part of a business’s information or operations with suppliers, vendors, partners, customers, or other businesses. The purpose of an Extranet is to securely share part of a business’s information or operations with suppliers, vendors, partners, customers, or other businesses. An Extranet requires security and privacy. An Extranet requires security and privacy. A firewall is a set of related programs, located at a network gateway server that protects the resources of a private network from users on other networks. A firewall is a set of related programs, located at a network gateway server that protects the resources of a private network from users on other networks.

5.4 Intranet: Enabling Communications Inside A Business The Benefits of Using Intranet The Benefits of Using Intranet WYSWIG- what you see is what you get, is the new buzz word in technology. WYSWIG- what you see is what you get, is the new buzz word in technology. Provide a common communication platform for the exchange and sharing of private corporation information. Provide a common communication platform for the exchange and sharing of private corporation information. Opportunity to take advantage of all the functions the web is capable of. Opportunity to take advantage of all the functions the web is capable of. Information can be provided in multimedia format to increase communication and effectiveness. Information can be provided in multimedia format to increase communication and effectiveness. Convenient communication channel Convenient communication channel

5.4 Intranet: Enabling Communications Inside A Business Internet/Intranet Communications Tools Internet/Intranet Communications Tools E-newsletters E-newsletters Mailing Lists Mailing Lists mailing lists mailing lists Discussion forums and FAQs Discussion forums and FAQs Live online chat Live online chat Webcasting Webcasting

5.4 Intranet: Enabling Communications Inside A Business The benefits of using the Internet communications tools are: The benefits of using the Internet communications tools are: Reduce call center loads and backlogs Reduce call center loads and backlogs Empower customers to find their own answers and share information across the organization Empower customers to find their own answers and share information across the organization Reduce service response time Reduce service response time Cut employee training time and costs Cut employee training time and costs Create ongoing customer dialogue Create ongoing customer dialogue Improve customer satisfaction and loyalty Improve customer satisfaction and loyalty

5.5 Extranet: B2B and B2C Communications Extranet: Extranet: is a private network that not only connects to the internet but also uses the same special set of rules (protocol) for communication. is a private network that not only connects to the internet but also uses the same special set of rules (protocol) for communication. Purpose: Purpose: Securely share part of the business's information or operations with suppliers, vendors, partners, customers, or other businesses. Securely share part of the business's information or operations with suppliers, vendors, partners, customers, or other businesses.

Extranet Internet Computer Server Firewall computer Allow authorized access Do not allow any outside access Internet

5.6 Internet Communications Tools Internet technology can help companies to accomplish: Internet technology can help companies to accomplish: Reduce call center loads and backlogs Reduce call center loads and backlogs Empower customers to find their own answers and share information across the organization Empower customers to find their own answers and share information across the organization Reduce service response time Reduce service response time Cut employee training time and costs Cut employee training time and costs Create ongoing customer dialogue Create ongoing customer dialogue Improve customer satisfaction and loyalty Improve customer satisfaction and loyalty

5.6 Internet Communications Tools The benefits of using The benefits of using One of the best things about is that you can access it anywhere you go, as long as you can gain access to a computer with an Internet connection. One of the best things about is that you can access it anywhere you go, as long as you can gain access to a computer with an Internet connection. Another advantage of is that it allows you to personalize your message to your customers. The personalization can apply to either a group or an individual. Another advantage of is that it allows you to personalize your message to your customers. The personalization can apply to either a group or an individual. It is inexpensive and convenient It is inexpensive and convenient Readership of s can be tracked using tracking technologies. Readership of s can be tracked using tracking technologies.

Table 5.3 A Selected List of Desktop Programs Programs: Programs: Microsoft Office Microsoft Office ArialSoft Enterprise, ArialSoft Enterprise, MailWorkz HTML- MailWorkz HTML- Gammadyne Mailer- Gammadyne Mailer-

5.6 Internet Communications Tools E-newsletter Advantages: Advantages: E-newsletters are mostly subscription-based and therefore ensure a certain degree of loyalty in readership. E-newsletters are mostly subscription-based and therefore ensure a certain degree of loyalty in readership. Newsletters are sent on a predetermined schedule, providing a high degree of consistency in terms of content and format. Newsletters are sent on a predetermined schedule, providing a high degree of consistency in terms of content and format.

5.6 Internet Communications Tools Mailing List Differences between the Mailing List and mailing list Differences between the Mailing List and mailing list Mailing List contains addresses of the people who typically share the same interests and who subscribe voluntarily to the list. Mailing List contains addresses of the people who typically share the same interests and who subscribe voluntarily to the list. These subscribers with common interests tend to form what is called virtual communities. These subscribers with common interests tend to form what is called virtual communities. A Mailing List allows all subscribers to send messages to the list. In other words, not only can the company that owns the Mailing List send marketing and other types of information to the subscribers of the list. A Mailing List allows all subscribers to send messages to the list. In other words, not only can the company that owns the Mailing List send marketing and other types of information to the subscribers of the list. Every subscriber can also send messages to the list to express his or her views. Every subscriber can also send messages to the list to express his or her views.

5.6 Internet Communications Tools Mailing List How to keep subscribers on the Mailing List: How to keep subscribers on the Mailing List: you should send only valuable information and tips that you know your subscribers will want. you should send only valuable information and tips that you know your subscribers will want. You should also include a concise privacy statement to ensure that protecting collected personal information is a top priority. You should also include a concise privacy statement to ensure that protecting collected personal information is a top priority. Your Mailing List should allow users to be removed, and you need to faithfully carry out your promise. Your Mailing List should allow users to be removed, and you need to faithfully carry out your promise. In each message you send out, you should include a brief explanation of how the recipient signed up for your Mailing List and provide quick and easy instructions on how to unsubscribe. In each message you send out, you should include a brief explanation of how the recipient signed up for your Mailing List and provide quick and easy instructions on how to unsubscribe. You should never send out to someone who has not requested to be on your List. You should never send out to someone who has not requested to be on your List.

Table 5.4 Examples of Privacy Statements for Mailing Lists Example 1: To subscribe, send any message to To unsubscribe, forward this message to leave- Example 1: To subscribe, send any message to To unsubscribe, forward this message to leave- Example 2: To unsubscribe, send a message to with only “unsubscribe leave-Johndoe” (without quotes) in the message body. We will not sell, rent, or disclose your address to third parties. Any exception to this policy will be made only with your permission. Example 2: To unsubscribe, send a message to with only “unsubscribe leave-Johndoe” (without quotes) in the message body. We will not sell, rent, or disclose your address to third parties. Any exception to this policy will be made only with your permission.

5.6 Internet Communications Tools Mailing List An mailing list is like a traditional mailing list that is used to send messages and information to everyone on the list at the same time. An mailing list is like a traditional mailing list that is used to send messages and information to everyone on the list at the same time. There are many ways you can acquire an mailing list. There are many ways you can acquire an mailing list. place a sign-up option on your Web site for your customers or visitors. place a sign-up option on your Web site for your customers or visitors. ask for addresses when you send out traditional communication materials, such as flyers, newsletters or catalogs. ask for addresses when you send out traditional communication materials, such as flyers, newsletters or catalogs. Finally, you can buy mailing lists from vendors who collect such lists by various means. It is important that you check the credibility of vendors before you buy the list. Finally, you can buy mailing lists from vendors who collect such lists by various means. It is important that you check the credibility of vendors before you buy the list.

5.6 Internet Communications Tools Discussion Forums And Faqs Discussion forums are a convenient way to collect your customers’ opinions, input, concerns and comments in one central place. Discussion forums are a convenient way to collect your customers’ opinions, input, concerns and comments in one central place. Benefits of having FAQs (frequently asked questions) Benefits of having FAQs (frequently asked questions) Can be viewed 24/7, saving a lot of time and labor. Can be viewed 24/7, saving a lot of time and labor. The answers to the questions should be: The answers to the questions should be: simple and easy to understand. simple and easy to understand. Most of all, the questions must be ones that customers are concerned with. Most of all, the questions must be ones that customers are concerned with. Either based on your own expectations or selected from questions submitted to you by customers. Either based on your own expectations or selected from questions submitted to you by customers.

5.6 Internet Communications Tools Live Online Chat Live online chat has become an increasingly popular means of instant communication with customers and online visitors. Live online chat has become an increasingly popular means of instant communication with customers and online visitors. Use live online chat for business that requires instant communications and to keep online visitors to your site by giving them instant feedback. Use live online chat for business that requires instant communications and to keep online visitors to your site by giving them instant feedback.

5.6 Internet Communications Tools Webcasting Webcasting or Web conference is an technology that enables you to view streaming videos and interact with the conference attendants live on the Web. Webcasting or Web conference is an technology that enables you to view streaming videos and interact with the conference attendants live on the Web. Streaming video is a means of communication that allows you to play sound or video in real time as it is downloaded from the Internet. Streaming video is a means of communication that allows you to play sound or video in real time as it is downloaded from the Internet. The difference between streaming and downloaded media lies in the fact that downloaded media are sent to the online visitor’s local computer as a readable file to play later, while streaming media play the data as they are being transferred to the local computer. The difference between streaming and downloaded media lies in the fact that downloaded media are sent to the online visitor’s local computer as a readable file to play later, while streaming media play the data as they are being transferred to the local computer.

5.6 Internet Communications Tools Webcasting A plug-in is required to play streaming video. A plug-in decompresses and plays the data as they are transferred to the local computer over the Web. A plug-in is required to play streaming video. A plug-in decompresses and plays the data as they are transferred to the local computer over the Web. Some examples of plug-ins include Some examples of plug-ins include Apple’s QuickTime Apple’s QuickTime RealPlayer’s RealPlayer RealPlayer’s RealPlayer