1. 8.
The Internet:
Electronic Commerce &
Electronic Business

2. 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.

3. 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 .
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.

4. 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

5. INDIVIDUAL OR ORGANIZATION NAME
INTERNET ADDRESS
INDIVIDUAL OR ORGANIZATION NAME
HOST COMPUTER
DOMAIN
LOCATION
DOMAIN NAME

6. 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

7. 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

8. 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.

9. 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

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

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

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

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

14. 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

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

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

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

18. 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

19. 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

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

21. 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)

22. 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)

23. 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

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

25. 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

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

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

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

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

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

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

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