1. Chapter 3 McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Chapter 3 3-2 CHAPTER THREE OVERVIEW SECTION 3.1 - BUSINESS AND THE INTERNET  Disruptive Technology  Evolution of the Internet  Accessing Internet Information  Providing Internet Information SECTION 3.2 - EBUSINESS  Ebusiness Basics  Ebusiness Models  Organizational Strategies for Ebusiness  Measuring ebusiness Success  Ebusiness Benefits and Challenges  New Trends in Ebusiness: Egovernment and Mcommerce

3. Chapter 3 3-3 DISRUPTIVE VERSUS SUSTAINING TECHNOLOGY Disruptive technology – a new way of doing things that initially does not meet the needs of existing customers Sustaining technology – produces an improved product customers are eager to buy

4. Chapter 3 3-4 EVOLUTION OF THE INTERNET The Internet began as an emergency military communications system operated by the Department of Defense Gradually the Internet moved from a military pipeline to a communication tool for scientists to businesses

5. Chapter 3 3-5 EVOLUTION OF THE WORLD WIDE WEB The Internet’s impact on information  Easy to compile  Increased richness and reach  Improved content The Internet makes it possible to perform business in ways not previously imaginable It can also cause a digital divide

6. Chapter 3 3-6 EVOLUTION OF THE WORLD WIDE WEB World Wide Web (WWW) – a global hypertext system that uses the Internet as its transport mechanism  Web 2.0  Mashups  Web 3.0 Hypertext transport protocol (HTTP) – the Internet standard that supports the exchange of information on the WWW

7. Chapter 3 3-7 ACCESSING INTERNET INFORMATION Four tools for accessing Internet information 1. Intranet – internalized portion of the Internet, protected from outside access, for employees 2. Extranet – an intranet that is available to strategic allies 3. Portal – website that offers a broad array of resources and services 4. Kiosk – publicly accessible computer system that allows interactive information browsing

8. Chapter 3 3-8 PROVIDING INTERNET INFORMATION Three common forms of service providers 1. Internet service provider (ISP) –provides individuals and other companies access to the Internet 2. Online service provider (OSP) – offers an extensive array of unique Web services 3. Application service provider (ASP) – offers access over the Internet to systems and related services that would otherwise have to be located in organizational computers

9. Chapter 3 3-9 EBUSINESS MODELS Ebusiness model – an approach to conducting electronic business on the Internet

10. Chapter 3 3-10 ORGANIZATIONAL STRATEGIES FOR EBUSINESS Primary business areas taking advantage of ebusiness include:  Marketing/sales  Financial services  Procurement  Customer service  Intermediaries

11. Chapter 3 3-11 MEASURING EBUSINESS SUCCESS Most companies measure the traffic on a website as the primary determinant of the website’s success Clickstream data tracks the exact pattern of a consumer’s navigation through a website Website metrics include visitor metrics, exposure metrics, visit metrics, and hit metrics

12. Chapter 3 3-12 EBUSINESS BENEFITS AND CHALLENGES Ebusiness benefits include:  Highly accessible  Increased customer loyalty  Improved information content  Increased convenience  Increased global reach  Decreased cost Ebusiness challenges include:  Protecting consumers  Leveraging existing systems  Increasing liability  Providing security  Adhering to taxation rules

13. Chapter 3 3-13 EBUSINESS BENEFITS AND CHALLENGES There are numerous advantages and limitations in ebusiness revenue models including:  Transaction fees  License fees  Subscription fees  Value-added fees  Advertising fees

14. Chapter 3 3-14 EGOVERNMENT AND MCOMMERCE

15. Chapter 3 3-15 EGOVERNMENT AND MCOMMERCE Mobile commerce - the ability to purchase goods and services through a wireless Internet-enabled device