1. 7/19: Internet & eCommerce How companies use the Internet –Collaboration (internal & external) –Communication (internal & external): Email, etc. –Gather information: competitors, etc. –eCommerce: Buy & sell products & services –Marketing & publishing information

2. Interactive Marketing Interactive Marketing: –Identify potential customers –Create advertising (WWW page) –Expose potential customers to ads –Interact with and learn from customers Pull marketing – traditional websites: customers are pulled to the advertising materials Push marketing – web broadcasts: PointCast, Castanet, BackWeb push material to customers’ computers

3. Business Value of the Internet Cost savings Customer service improvements Marketing Revenue generation (eCommerce) Strategic business value: –Global dissemination, –Interaction & Collaboration –Customization –eCommerce –Integration

4. Global Dissemination Email Electronic mailing lists World Wide Web sites New markets, customers, vendors

5. Interaction & Collaboration Email World Wide Web sites Discussion forums Chat rooms Interactive forms Groupware

6. eCommerce: a Definition Electronic commerce addresses the use of information technology to support how a business interacts with the marketplace, including developing, marketing, selling, delivering, servicing, and paying for products and services.

7. Business-to-Consumer (B2C) WWW storefronts Advertising, product information Online purchasing Secure payment systems www.buy.com www.sears.com www.amazon.com

8. B2C: Retailing Customer value: not just lowest price Quality of product Quality of service –Efficient layout of site –Efficient “checkout lines” –Personalization –Socialization –Attractive visuals –Incentives –Security & reliability

9. Business-to-Business (B2B) Electronic Data Interchange (EDI) –Standard: X.12 –Invoices, purchase orders, etc. –Saves time, money, reduces errors –Transmitted on private networks –Third-party solutions: GE, IBM, Sterling Electronic Funds Transfer (EFT) –Electronic payment authorization –Debits & credits accounts, passes through a ACH

10. B2B: Supply Chain Management Integrating the steps in the supply chain for products Changing the idea from “suppliers” to “partners” Supplier management Inventory & distribution management Push vs. pull supply chains

11. B2C/B: Secure Electronic Payments Issue: prevent information from getting waylaid, spied upon Options for solutions: –Encryption SSL: Secure Socket Layer for transmission SET: Secure Electronic Transaction Encryption upon storage of information –Remove transactions from Internet Call to order, call to register credit card info –Digital currency

12. Midterm Exam Essays: respond to two of three questions. –Expected length of response: ¾ - 1 page, double- spaced, per essay. Due at classtime on Monday, July 24 th.