1. Copyright © 2002 by Harcourt, Inc. All rights reserved. CHAPTER SEVEN ELECTRONIC COMMERCE: THE INTERNET AND ONLINE BUSINESS Text by Profs. Gene Boone & David Kurtz Multimedia Presentation by Prof. Milton Pressley The University of New Orleans milton.pressley@uno.edu

2. Copyright © 2002 by Harcourt, Inc. All rights reserved. THE INTERNET: KEY TO BUSINESS SUCCESS Internet (or Net): worldwide network of interconnected computers that lets anyone with access to a personal computer send and receive images and data anywhere World Wide Web: collection of resources on the internet that offers easy access to text, graphics, sound, and other multimedia resources © PhotoDisc

3. Copyright © 2002 by Harcourt, Inc. All rights reserved. THE INTERNET: KEY TO BUSINESS SUCCESS Web site: integrated document composed of electronic pages that integrate text, graphics, audio, and video elements, as well as hypertext links to other documents Domain Name: a Web site address © PhotoDisc

4. Copyright © 2002 by Harcourt, Inc. All rights reserved. How The Internet Works Remarkable System of cooperating networks Figure 7.1: How Information Travels on the Internet

5. Copyright © 2002 by Harcourt, Inc. All rights reserved. How The Internet Works Internet Service Provider (ISP) organization that provides access to the internet, usually via the public telephone network Digital Subscriber Line (DSL) a cable modem, or a satellite link to the internet which makes the data move at fast speeds

6. Copyright © 2002 by Harcourt, Inc. All rights reserved. How The Internet Works ISP’s Server: a larger, special computer that holds information, providing it to clients on request Client: another computer or device that relies on the resources of other servers to help with its own processing

7. Copyright © 2002 by Harcourt, Inc. All rights reserved. WHO’S ON THE NET? Users on every continent 43% of Internet Users in the US Share from other countries is growing © PhotoDisc

8. Copyright © 2002 by Harcourt, Inc. All rights reserved. Figure 7.2: Top Ten Internet Users

9. Copyright © 2002 by Harcourt, Inc. All rights reserved. Once dominated by men Gender gap has narrowed Women users now represent more than ½ in the U.S. Women users growing rapidly in other nations WHO’S ON THE NET? © PhotoDisc

10. Copyright © 2002 by Harcourt, Inc. All rights reserved. Figure 7.3: Four Functions of the Internet Using the Net’s Four Functions

11. Copyright © 2002 by Harcourt, Inc. All rights reserved. THE SCOPE OF ELECTRONIC COMMERCE Electronic Commerce (E-Commerce): process for online marketing of goods and services – including product information, ordering, invoicing, and payment processes, and customer services Electronic Commerce (E-Commerce): process for online marketing of goods and services – including product information, ordering, invoicing, and payment processes, and customer services © PhotoDisc

12. Copyright © 2002 by Harcourt, Inc. All rights reserved. Figure 7.6: Benefits of E-commerce

13. Copyright © 2002 by Harcourt, Inc. All rights reserved. Figure 7.9: Top Five Products Purchased Online

14. Copyright © 2002 by Harcourt, Inc. All rights reserved. Figure 7.10: Roadblocks to E-Commerce

15. Copyright © 2002 by Harcourt, Inc. All rights reserved. MANAGING A WEB SITE: DOING BUSINESS ON THE INTERNET Some key questions to consider in developing a Web site are shown on the next slide... Some key questions to consider in developing a Web site are shown on the next slide... © PhotoDisc

16. Copyright © 2002 by Harcourt, Inc. All rights reserved. Figure 7.13: Questions to Consider in Developing a Web Site

17. Copyright © 2002 by Harcourt, Inc. All rights reserved. Figure 7.14: Macromedia: E-Commerce Web Site Developer

18. Copyright © 2002 by Harcourt, Inc. All rights reserved. ScreamingMedia.com Using ads like this to convince firms to contract with it’s experts to provide customized content Copyright © 2002 by Harcourt, Inc. All rights reserved.

19. Content and Connections Need interesting material Who should host the site? How to draw business to the site? Developing Successful Web Sites © PhotoDisc MANAGING A WEB SITE: DOING BUSINESS ON THE INTERNET

20. Copyright © 2002 by Harcourt, Inc. All rights reserved. Costs are highly variable Costs are highly variable Development Costs Development Costs Web Host Costs Web Host Costs Keeping Web Site Current Keeping Web Site Current Developing Successful Web Sites Costs and Maintenance © PhotoDisc MANAGING A WEB SITE: DOING BUSINESS ON THE INTERNET

21. Copyright © 2002 by Harcourt, Inc. All rights reserved. Some measures of effectiveness are shown on the next slide... Some measures of effectiveness are shown on the next slide... Developing Successful Web Sites Costs and Maintenance Measuring Web Site Effectiveness © PhotoDisc MANAGING A WEB SITE: DOING BUSINESS ON THE INTERNET

22. Copyright © 2002 by Harcourt, Inc. All rights reserved. Figure 7.15: Measures of Web Site Effectiveness Click-through rate: the percentage of people presented with a Web banner ad who click on it Click-through rate: the percentage of people presented with a Web banner ad who click on it Conversion rate: the percentage of visitors to a Web site who make a purchase Conversion rate: the percentage of visitors to a Web site who make a purchase

23. Copyright © 2002 by Harcourt, Inc. All rights reserved. THE GLOBAL ENVIRONMENT OF E-COMMERCE Internet creates an enormous pool of potential customers Internet creates an enormous pool of potential customers Firms can market their offerings internationally and locate distribution sources and trading partners online Firms can market their offerings internationally and locate distribution sources and trading partners online Customers can search for products and information conveniently Customers can search for products and information conveniently Sites must consider both language and global cultural variations Sites must consider both language and global cultural variations E-commerce can heighten competition E-commerce can heighten competition © PhotoDisc

24. Copyright © 2002 by Harcourt, Inc. All rights reserved. Figure 7.16: Importance of Considering the Internet’s Global Population

25. Copyright © 2002 by Harcourt, Inc. All rights reserved. WHAT’S AHEAD In upcoming chapters we’ll: In upcoming chapters we’ll: Look at other trends that are reshaping the business world Look at other trends that are reshaping the business world Explore how companies: Explore how companies: Organize, lead, and manage their work processes Organize, lead, and manage their work processes Manage and motivate their employees Manage and motivate their employees Empower their employees Empower their employees Handle labor and workplace disputes Handle labor and workplace disputes Create world-class goods and services Create world-class goods and services © PhotoDisc