1. BUSINESS PLUG-IN B11
E-Business

2. LEARNING OUTCOMES
Describe the four common tools an organization can use to access Internet information
Compare ISPs, OSPs, and ASPs. Be sure to include an overview of common services provided by each
Describe how marketing, sales, financial services, and customer service departments can use ebusiness to increase revenues or reduce costs

3. LEARNING OUTCOMES
Explain why an organization would use metrics to determine a Web site’s success
Identify the different types of egovernment business models
Define m-commerce and explain how an egovernment could use it to increase its efficiency and effectiveness

4. INTRODUCTION
Pure play – an Internet retailer that has no physical store, such as Expedia.com and Amazon.com
Ebusiness – conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners
Ebusiness model – an approach to conducting electronic business through which a company can become a profitable business on the Internet

5. Accessing Internet Information
Four tools for accessing Internet information
Intranet – internalized portion of the Internet, protected from outside access, for employees
Extranet – an intranet that is available to strategic allies
Portal – Web site that offers a broad array of resources and services
Kiosk – publicly accessible computer system that allows interactive information browsing

6. Providing Internet Information
Three common forms of service providers
Internet service provider (ISP) –provides individuals and other companies access to the Internet
Online service provider (OSP) – offers an extensive array of unique Web services
Application service provider (ASP) – offers access over the Internet to systems and related services that would otherwise have to be located in organizational computers

7. Providing Internet Information
Common ISP services include:
Web hosting
Hard-disk storage space
Availability
Support

8. Providing Internet Information
Wireless Internet service provider (WISP)

9. Providing Internet Information
ISPs, OSPs, and ASPs use service level agreements (SLA) which define the specific responsibilities of the service provider and set the customer expectations
Review Figure B11.3 for a listing of the top ISPs, OSPs, and ASPs

10. Organizational Strategies for Ebusiness
Primary business areas taking advantage of ebusiness include:
Marketing/sales
Financial services
Procurement
Customer service
Intermediaries

11. MARKETING/SALES Generating revenue on the Internet:
Online ad (banner ad) - box running across a Web page that contains advertisements
Pop-up ad - a small Web page containing an advertisement
Associate programs (affiliate programs) - businesses generate commissions or royalties
Viral marketing - a technique that induces Web sites or users to pass on a marketing message
Mass customization - gives customers the opportunity to tailor products or services

12. MARKETING/SALES Generating revenue on the Internet:
Personalization - occurs when a Web site can fashion offers that are more likely to appeal to that person
Blog - Web site in which items are posted on a regular basis and displayed in reverse chronological order
Real simple syndications (RSS) - a Web feed format used for Web syndication of content
Podcasting - the distribution of audio or video files, such as radio programs or music videos, over the Internet to play on mobile devices

13. MARKETING/SALES Generating revenue on the Internet:
Search engine optimization (SEO) - a set of methods aimed at improving the ranking of a Web site in search engine listings
Spamdexing - uses a variety of deceptive techniques in an attempt to manipulate search engine rankings, whereas legitimate SEO focuses on building better sites and using honest methods of promotion

14. FINANCIAL SERVICES Online consumer payments include:
Financial cybermediary
Electronic check
Electronic bill presentment and payment (EBPP)
Digital wallet

15. FINANCIAL SERVICES Online business payments include:
Electronic data interchange (EDI)
Value-added network (VAN)
Financial EDI (financial electronic data interchange)

16. Electronic Trading Network
FINANCIAL SERVICES
Electronic Trading Network

17. PROCURMENT
Maintenance, repair, and operations (MRO) materials (also called indirect materials) – materials necessary for running an organization but do not relate to the company’s primary business activities
Eprocurement - the B2B purchase and sale of supplies and services over the Internet
Electronic catalog - presents customers with information about goods and services offered for sale, bid, or auction on the Internet

18. CUSTOMER SERVICE
Customer service is the business process where the most human contact occurs between a buyer and a seller
Ebusiness strategists are finding that customer service via the Web is one of the most challenging and potentially lucrative areas of ebusiness
The primary issue facing customer service departments using ebusiness is consumer protection

19. Consumer Protection

20. Consumer Protection Ebusiness security Encryption
Secure socket layer (SSL)
Secure electronic transaction (SET)

21. INTERMEDIARIES
Intermediaries – agents, software, or businesses that bring buyers and sellers together that provide a trading infrastructure to enhance ebusiness
Reintermediation – using the Internet to reassemble buyers, sellers, and other partners in a traditional supply chain in new ways

22. Measuring Ebusiness Success
Most companies measure the traffic on a Web site as the primary determinant of the Web site’s success
However, a large amount of Web site traffic does not necessarily equate to large sales
Many organizations with high Web site traffic have low sales volumes

23. Measuring Ebusiness Success
Web site traffic analysis can include:
Cookie
Click-through
Banner ad
Interactivity

24. Behavioral Metrics
Clickstream data tracks the exact pattern of a consumer’s navigation through a Web site
Clickstream data can reveal:
Number of pageviews
Pattern of Web sites visited
Length of stay on a Web site
Date and time visited
Number of customers with shopping carts
Number of abandoned shopping carts

25. Behavioral Metrics Web site metrics include Visitor metrics
Exposure metrics
Visit metrics
Hit metrics

26. New Trends in Ebusiness: Egovernment and Mcommerce
Egovernment - involves the use of strategies and technologies to transform government(s) by improving the delivery of services and enhancing the quality of interaction between the citizen-consumer within all branches of government

27. New Trends in Ebusiness: Egovernment and Mcommerce

28. New Trends in Ebusiness: Egovernment and Mcommerce
Mobile commerce - the ability to purchase goods and services through a wireless Internet-enabled device.

29. CLOSING CASE ONE Mail with PostalOne
United States Postal Service’s (USPS) productivity has grown by only 11 percent over the past three decades
USPS is pursuing several ebusiness projects to help increase growth including:
NetPost Mailing Online
Post Electronic Courier Service
NetPost.Certified
EBillPay

30. CLOSING CASE ONE QUESTIONS
Do you think the USPS’s steps are far-reaching enough to ensure its relevance in ebusiness?
What other strategic alliances, akin to its partnership with CheckFree, can the Postal Service develop to stay competitive?
Why would the USPS compete in a market that private companies already serve well?

31. CLOSING CASE ONE QUESTIONS
How can the USPS use portals to help grow its business?
How can the USPS use ebusiness sales and marketing techniques such as blogs, podcasts, and SEO to improve its business?
How can the USPS use ASPs to improve its business?

32. CLOSING CASE TWO Made-To-Order Businesses
Mass customization is a new trend in the retail business
Lands’ End, Nike, and Stamps.com are a few of the companies using mass customization to enhance the way they do business

33. CLOSING CASE TWO QUESTIONS
What role does ebusiness play in a mass customization business strategy?
How can Lands’ End use additional sales and marketing ebusiness techniques to improve its business?
How can Nike use ebusiness financial services to improve its business?

34. CLOSING CASE TWO QUESTIONS
How can Stamps.com use ASPs and electronic bill payment to improve its business?
Choose one of the examples above and analyze its ebusiness approach. Would you invest $20,000 in the company?
Choose one of the examples above and explain how the company is attempting to gain a competitive advantage with mass customization and personalization. How could this company use podcasts, blogs, and SEO to improve its business?