1. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-1 THE INTERNET AND ELECTRONIC COMMERCE LESSON 10

2. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-2 LESSON OVERVIEW  CONCEPT OF INTERNET  REQUIREMENTS FOR CONNECTING TO INTERNET  DEFINITION OF E-COMMERCE  E-COMMERCE BUSINESS OPERATIONS  BARRIERS TO BUSINESS AND CONSUMER TARGET MARKETS

3. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-3 CONCEPT OF INTERNET  The Internet is a computer connected to another computer through a phone line or cable communicating with each other.  The Internet or the Net is a collection of computers, all linked together, to share information globally.

4. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-4 REQUIREMENTS FOR CONNECTING TO INTERNET  Computer  Modem  Browser Software  ISP

5. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-5 BASIC CONCEPTS When working on a website there are a couple of key concepts that need to be understood. Some of them are  Local computer  Remote computer  Hypertext Markup Language, HTML  Protocols

6. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-6 DEFINITION OF e-COMMERCE  It is online shopping via the Internet.  It is any commercial activity conducted electronically, particularly via private or open networks, such as the Internet.  It is a confluence of business operations with electronic and network technologies.  The core of e-Commerce is network technologies and especially open networks such as the Internet.

7. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-7 SOME OF e-COMMERCE BUSINESS OPERATIONS  Information exchange  Goods or services trading  Sales promotion and advertising  Online digital content delivery  Electronic share trading  Collaborative work interaction  Manufacturing management  Accounts settlement  Online sourcing  Public procurement  Direct consumer marketing  Inventory management  Post-sales service  Commercial auctions.  Electronic funds transfers and transaction processing  ]Electronic bills of lading processing

8. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-8 e-COMMERCE IMPLEMENTATION Every e-Commerce implementation will differ. Most Short and Medium Enterprises focus operations on:  Product promotion via online catalogues  Transaction processing (exchanging digitized monetary information)  Customer Support

9. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-9 CONFIGURATION OF AN e-COMMERCE OPERATION It is determined by two dynamic factors:  The company's business goals  The capabilities of the supportive technology

10. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-10 GUIDELINE FOR DESIGNING AN e-COMMERCE OPERATION  The technology should support the services.  Select tools and technologies that serve business goals.  Do not define services according to the features and functionality of the technologies.

11. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-11 BENEFITS OF e-COMMERCE In Small Business  Extend the range of sales territory  Streamline communication to suppliers and clients  Expand reach to new clients  Improve service to existing clients  Reduce paperwork and time spent on correspondence  Track customer satisfaction  Expedite billing 1 of 3

12. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-12 BENEFITS OF e-COMMERCE In Small Business  Improve collaboration on work projects  Expand markets beyond geographical, national boundaries  Leverage legacy data  Improve inventory control, order processing  Establish position in emerging e-Commerce marketplace 2 of 3

13. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-13 BENEFITS OF e-COMMERCE In Small Business  Lower costs of overhead  Realize economies of scale by increasing sales volume to new markets  Monitor competition and industry trends  Improve or expand product lines - locate new suppliers, products that could be included in catalogue. 3 of 3

14. COMPUTER SYSTEM FUNDAMENTAL Copyright @ Genetic Computer School 2008 10-14 BARRIERS TO BUSINESS AND CONSUMER TARGET MARKETS  Internet Not Yet Fully Established  Low Confidence In Security Technologies  Legal Issues