1. 10. THE INTERNET: ELECTRONIC COMMERCE & ELECTRONIC BUSINESS
10.1

2. LEARNING OBJECTIVES DESCRIBE INTERNET, ITS CAPABILITIES
IDENTIFY INTERNET BENEFITS TO ORGANIZATIONS
DEMONSTRATE HOW INTERNET USED FOR ELECTRONIC COMMERCE *
10.2

3. LEARNING OBJECTIVES
DEMONSTRATE HOW INTERNET TECHNOLOGY USED FOR INTRA- AND INTERORGANIZATIONAL ELECTRONIC BUSINESS
EXAMINE CHALLENGES OF INTERNET TO BUSINESS & SOCIETY *
10.3

4. MANAGEMENT CHALLENGES
THE INTERNET
INTERNET & ELECTRONIC COMMERCE
INTRANETS & ELECTRONIC BUSINESS
CHALLENGES & OPPORTUNITIES *
10.4

5. THE INTERNET BEGAN AS GOVERNMENT CONNECTION OF UNIVERSITIES
INTERNET SERVICE PROVIDER (ISP): organization connected to Internet, leases temporary connections to subscribers
NO ONE OWNS IT, NO FORMAL ORGANIZATION *
10.5

6. INTERNET CAPABILITIES
E -MAIL: person -to-person messaging; document sharing
USERNET NEWSGROUPS: electronic bulletin boards for discussion groups
LISTSERVs: list servers for discussion groups
CHATTING: interactive conversations
TELNET: log on one computer, work on another
FTP: transfer files from computer to computer
GOPHERS: use menus to locate text material *
10.6

7. INTERNET ADDRESS http://www.prenhall.com/laudon PROTOCOL FOR THE WEB
HOST COMPUTER
DIRECTORY
EXTENSION
DOMAIN NAME
10.7

8. INTERNET TERMS
HOME PAGE: WWW screen display welcomes user to organization’s page
WEBMASTER: person in charge of Web site
UNIFORM RESOURCE LOCATOR (URL): address of specific Internet resource *
10.8

9. INTERNET TERMS
HYPERTEXT TRANSPORT PROTOCOL (http): communications standard used to transfer Web pages
HYPERTEXT MARKUP LANGUAGE (HTML): popular programming language for creating Web sites *
10.9

10. SURFING THE NET
SEARCH ENGINE: tool for locating specific sites or information on WWW
PORTAL: point of entry to WWW
“PUSH” TECHNOLOGY: server streams relevant content to browser
MULTICASTING: sending data to select group *
10.10

11. INTRANET INTERNAL NETWORK WWW TECHNOLOGY
FIREWALL: Security System to Prevent Invasion of Private Networks
OVERCOMES COMPUTER PLATFORM DIFFERENCES
OFTEN INSTALLED ON EXISTING NETWORK INFRASTRUCTURE *
10.11

12. ALLOWS SELECT USERS OUTSIDE ORGANIZATION TO USE ITS INTRANET:
EXTRANET
ALLOWS SELECT USERS OUTSIDE ORGANIZATION TO USE ITS INTRANET:
CUSTOMERS
BUSINESS PARTNERS
VENDORS *
10.12

13. EXTRANET
10.13

14. INTERNET BENEFITS GLOBAL CONNECTIVITY REDUCED COMMUNICATIONS COST
LOWER TRANSACTION COSTS
REDUCED AGENCY COSTS
INTERACTIVITY, FLEXIBILITY, CUSTOMIZATION
ACCELERATED KNOWLEDGE *
10.14

15. INTERNET & ELECTRONIC COMMERCE
EASY TO LINK WITH OTHER BUSINESSES, CUSTOMERS
CAN UPDATE PRODUCT INFORMATION, ORDERING, CUSTOMER SUPPORT
ON-LINE STOREFRONTS
ENHANCED BUSINESS FORMS *
10.15

16. 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 *
10.16

17. INTERNET BUSINESS MODELS
VIRTUAL STOREFRONT: sells goods, services on-line
MARKETPLACE CONCENTRATOR: concentrates information from several providers
INFORMATION BROKER: provides product, pricing, availability information *
10.17

18. INTERNET BUSINESS MODELS
TRANSACTION BROKER: buyers view rates, terms from various sources
ELECTRONIC CLEARINGHOUSE: auction-like setting, products, prices, change in response to demand
REVERSE AUCTION: buyer sets price, submits to multiple sellers *
10.18

19. 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 *
10.19

20. 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 *
10.20

21. INTRANETS AND ELECTRONIC BUSINESS
ELECTRONIC COMMERCE SERVERS
BENEFITS
GROUP COLLABORATION
FUNCTIONAL APPLICATIONS
SUPPLY CHAIN MANAGEMENT *
10.21

22. ELECTRONIC COMMERCE SERVERS:
ICAT: on-line catalog shopping, order placement (Icat)
NET.COMMERCE: merchant server supporting Secure Electronic Transactions protocol (IBM)
MerchantXpert:: search tools, order management, tax, payment, logistics modules (Netscape) *
10.22

23. ELECTRONIC COMMERCE SERVICES:
OPEN MARKET TRANSACT: customer authentication, order & payment processing, tax, multi-language customer service (Open Market)
INTERNET COMMERCE SERVER: integrates orders, inventory, customer service, payments (Oracle) *
10.23

24. BENEFITS OF INTRANETS:
CONNECTIVITY
CAN BE TIED TO LEGACY SYSTEM & TRANSACTION PROCESSING
INTERACTIVE APPLICATIONS WITH TEXT, AUDIO, VIDEO
SCALABLE TO LARGER OR SMALLER SYSTEMS AS REQUIRED *
10.24

25. BENEFITS OF INTRANETS:
EASY TO USE BROWSER INTERFACE
LOW START-UP COSTS
RICH, RESPONSIVE INFORMATION ENVIRONMENT
REDUCED INFORMATION DISTRIBUTION COSTS *
10.25

26. 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 *
10.26

27. FUNCTIONAL APPLICATIONS:
FINANCE & ACCOUNTING
HUMAN RESOURCES
SALES & MARKETING
MANUFACTURING & PRODUCTION *
10.27

28. GENERAL LEDGER REPORTING PROJECT COSTING ANNUAL REPORTS BUDGETING *
FINANCE & ACCOUNTING:
GENERAL LEDGER REPORTING
PROJECT COSTING
ANNUAL REPORTS
BUDGETING *
10.28

29. EMPLOYEE SAVINGS PLANS BENEFITS ENROLLMENT ON-LINE TRAINING
HUMAN RESOURCES:
CORPORATE POLICIES
EMPLOYEE SAVINGS PLANS
BENEFITS ENROLLMENT
ON-LINE TRAINING
JOB POSTING *
10.29

30. PROMOTIONAL CAMPAIGNS SALES PRESENTATIONS SALES CONTRACTS *
SALES & MARKETING:
COMPETITOR ANALYSIS
PRICE UPDATES
PROMOTIONAL CAMPAIGNS
SALES PRESENTATIONS
SALES CONTRACTS *
10.30

31. MANUFACTURING & PRODUCTION:
QUALITY MEASUREMENTS
MAINTENANCE SCHEDULES
DESIGN SPECIFICATIONS
MACHINE OUTPUT
ORDER TRACKING *
10.31

32. SUPPLY-CHAIN MANAGEMENT
10.32

33. CHALLENGES & OPPORTUNITIES
UNPROVEN BUSINESS MODELS
BUSINESS PROCESS CHANGE REQUIREMENTS
CHANNEL CONFLICTS
TECHNOLOGY HURDLES
LEGAL ISSUES
SECURITY & PRIVACY *
10.33

34. Connect to the INTERNET
PRESS LEFT MOUSE BUTTON ON ICON TO CONNECT TO THE LAUDON & LAUDON WEB SITE FOR MORE INFORMATION ON THIS CHAPTER
10.34

35. 10. THE INTERNET: ELECTRONIC COMMERCE & ELECTRONIC BUSINESS
10.35