Chapter 1, Introduction to e-Business and e-Commerce Outline 1.1 Introduction: Transitioning to the Web 1.2 History of the Internet 1.3 History of the Web 1.4 Internet and World Wide Web Development 1.5 e-Business and e-Commerce Overview 1.6 A Word of Caution

Introduction: Transitioning to the Web The Internet has changed the way people communicate, conduct business and manage their daily lives Technologies reviewed Networking Communication Internet, etc… Resources used

History of the Internet Advanced Research Projects Agency of the Department of Defense (ARPA) Implemented the ARPAnet, the grandparent of today’s Internet Packet switching Digital data is sent in small packages called packets Packets Contain data, address information, error-control information and sequencing information Transmission Control Protocol (TCP) ensures that messages are properly routed from sender to receiver and that those messages arrived intact

History of the Internet Internetworking Protocol (IP) Enabled the intercommunication of inter-organization and intra-organization networks The Internet was initially limited to universities and research institutions Bandwidth The information carrying capacity of communications lines

History of the World Wide Web Locate and view multimedia-based documents on almost any subject Makes information instantly and conveniently accessible worldwide Possible for individuals and small businesses to get worldwide exposure Changing the way business is done

Internet and World Wide Web Development Computer use is increasing in almost every field of endeavor Dramatic decrease in the cost of computing Enhanced multimedia capabilities Increased publishing and learning opportunities Enhanced communication technologies

Age of Knowledge Knowledge is power and content is King

e-Business and e-Commerce Overview Successful e-businesses are those that recognize the needs of their target audiences and match those needs with relevant content Not limited to seasoned professionals Young entrepreneurs are doable

e-Business and e-Commerce Overview Involves exchanges among customers, business partners and the vendor A supplier interacts with a manufacture Customers interact with sales representatives Shipment providers interact with distributors e-Business Have all the elements of e-commerce Also includes operations that are handled within the business itself Production Development Corporate infrastructure Product management

e-Business and e-Commerce Overview E-Business and e-Commerce have increased the speed and ease of business transactions  Intense competition Businesses must adjust to new technologies and implement new systems Customized production capabilities Finding and keeping key employees 24-by-7 maintenance responsibilities Must be reliable, fast, functional and user friendly All companies have to consider the impact that Web-enabled business will have on them.

e-Business and e-Commerce Overview Brick-and-mortar businesses Businesses that have only a physical presence No single brick-and-mortar store can offer 50,000 products E.g. The traditional stores Click-and-mortar businesses Businesses that have both an online and an offline presence Can offer a limitless number of products The transaction from brick-and-mortar business to click-and-mortar business is happening in all of the economy.

e-Business and e-Commerce Overview Virtual office All communications are conducted via phone, voice mail, fax, e-mail and the emerging capabilities of the Internet Personalization Tailoring Web pages to users’ individual preferences and letting users bypass irrelevant content Tracking customers’ behaviors through Internet Make it easier and more pleasant for many people to surf the Internet and find what they want. Copyright infringement

e-Business and e-Commerce Overview Privacy invasion The sale of personal data to another organization without the consumer’s knowledge Tracking of Internet activity Unauthorized access to credit-card numbers, medical history and criminal history Many privacy protection algorithm E.g. PGP (Pretty Good Privacy)

Campusfoods.com Feature Developed by students at the University of Pennsylvania Serves approximately 150 colleges and universities around the United States Built on investments made by private investors, family members and friends Revenue is generated by a percentage taken from transaction fees

Campusfoods.com Feature Campusfoods.com home page. (Courtesy of Campusfoods.com.)

A Word of Caution Avoid Poor management Ineffective marketing Ill-designed logistics Unrealistic expectations Recognize the difficulty of finding funding and going public Finding space Hiring employees