1. Copyright © 2010 Pearson Education, Inc.Copyright © 2007 Pearson Education, Inc. Slide 1-1 ELC 200 Day 5

2. Agenda Questions? Assignment 1 posted  Due Monday, September 19 @11:05 AM Next Class Upload in BlackBoard  assignment1.pdf assignment1.pdf Assignment 2 posted in BlackBoard  Due Monday, September 26 @ 11:05 AM  assignment2.pdf assignment2.pdf Finish E-Commerce Business Models and Concepts Begin Discussion on The Internet and the World Wide Web

3. Copyright © 2011 Pearson Education, Inc.Copyright © 2007 Pearson Education, Inc. Slide 1-3 Chapter 2 E-commerce Business Models and Concepts Copyright © 2011 Pearson Education, Inc.

4. Possible Bonus Points Questions History of the name “eBay”  1 st item sold on eBay  1,000,000 th item sold on eBay  The great lie on eBay origin Name and origin of   What does his name mean?  What does he look like all “grown up”? Copyright © 2010 Pearson Education, Inc. Slide 1-4

5. Objectives Explain the key business concepts and strategies applicable to e-commerce Copyright © 2010 Pearson Education, Inc. Slide 1-5

6. Copyright © 2011 Pearson Education, Inc. How the Internet and the Web Change Business E-commerce changes industry structure by changing:  Michael Porter’s Five Forces http://www.businessballs.com/portersfiveforcesofcompetition.htm  Basis of competition among rivals  Barriers to entry  Threat of new substitute products  Strength of suppliers  Bargaining power of buyers Slide 2-6

7. Copyright © 2010 Pearson Education, Inc. Slide 1-7

8. Copyright © 2010 Pearson Education, Inc. Industry Value Chains Set of activities performed by suppliers, manufacturers, transporters, distributors, and retailers that transform raw inputs into final products and services Internet reduces cost of information and other transactional costs Leads to greater operational efficiencies, lowering cost, prices, adding value for customers Slide 2-8

9. Copyright © 2010 Pearson Education, Inc. E-commerce and Industry Value Chains Figure 2.5, Page 103 Slide 2-9

10. Copyright © 2010 Pearson Education, Inc. Firm Value Chains Activities that a firm engages in to create final products from raw inputs Each step adds value Effect of Internet:  Increases operational efficiency  Enables product differentiation  Enables precise coordination of steps in chain Slide 2-10

11. Value Chain Primary Activities 1. Inbound logistics (get products or services) 2. Operations (make products or services) 3. Outbound logistics (deliver products or services) 4. Marketing and sales (sell products or services) 5. Service (deal with customer issues)

12. Value Chain Support Activities 1. Corporate infrastructure (management and support activities) 2. Human resources 3. Technology development 4. Procurement (get MRO & supplies)

13. Copyright © 2010 Pearson Education, Inc. E-commerce and Firm Value Chains Figure 2.6, Page 104 Slide 2-13

14. Analyzing Value Chain Activities What type of activity is being performed? Does it add value? Does it ensure the quality of other activities? How does the activity add value to the customer? Could the same activity be reconfigured or performed in a different way? What inputs are used? Is the expected output being produced? Is the activity vital? Could it be outsourced, deleted completely, or combined with another activity? How does information flow into and out of the activity? Is the activity a source of competitive advantage? Does the activity fit the overall goals of the organization?

15. 1-15 © 2007 Prentice-Hall, Inc

16. 1-16 © 2007 Prentice-Hall, Inc FBI Value Chain Source: http://www.nap.edu/books/0309092248/html/19.htmlhttp://www.nap.edu/books/0309092248/html/19.html

17. Value Chain for American Airlines

18. E-commerce Value Chain The E-commerce Value Chain means identifying:  The competitive forces within the company’s e- commerce environment  The business model it will use  Identifying the value activities that help the e- commerce value chain do its homework E-commerce views information technology as part of a company’s value chain

19. Copyright © 2010 Pearson Education, Inc. Firm Value Webs Networked business ecosystem Uses Internet technology to coordinate the value chains of business partners  Within an industry  Within a group of firms Coordinates a firm’s suppliers with its own production needs using an Internet-based supply chain management system Slide 2-19

20. Copyright © 2010 Pearson Education, Inc. Internet-Enabled Value Web Figure 2.7, Page 105 Slide 2-20

21. Copyright © 2010 Pearson Education, Inc. Business Strategy Plan for achieving superior long-term returns on the capital invested in a business firm Michael Porter’s Generic Strategies  http://www.quickmba.com/strategy/generic.shtml http://www.quickmba.com/strategy/generic.shtml Four generic strategies 1. Differentiation 2. Cost 3. Scope 4. Focus Slide 2-21

22. Copyright © 2011 Pearson Education, Inc. Chapter 3: The Internet and World Wide Web: E-commerce Infrastructure Copyright © 2007 Pearson Education, Inc. Slide 1-22 Chapter 3 The Internet and World Wide Web: E-commerce Infrastructure Copyright © 2011 Pearson Education, Inc.

23. Copyright © 2010 Pearson Education, Inc. The Internet: Technology Background Internet  Interconnected network of thousands of networks and millions of computers  Links businesses, educational institutions, government agencies, and individuals World Wide Web (Web)  One of the Internet’s most popular services  Provides access to around billions, possibly trillions, of Web pages Slide 3-23

24. Copyright © 2010 Pearson Education, Inc. Slide 1-24

25. Copyright © 2010 Pearson Education, Inc. The Evolution of the Internet 1961—The Present Innovation Phase, 1964–1974  Creation of fundamental building blocks Institutionalization Phase, 1975–1994  Large institutions provide funding and legitimization Commercialization Phase,1995–present  Private corporations take over, expand Internet backbone and local service  2002_0918_Internet_History_and_Growth.ppt 2002_0918_Internet_History_and_Growth.ppt Slide 3-25

26. 1-26 Source: http://www.glossar.de/glossar/1frame.htm?

27. Copyright © 2010 Pearson Education, Inc. The Internet: Key Technology Concepts Defined by Federal Networking Commission as network that:  Uses IP addressing  Supports TCP/IP  Provides services to users, in manner similar to telephone system Three important concepts: 1. Packet switching 2. TCP/IP communications protocol 3. Client/server computing Slide 3-27

28. Copyright © 2010 Pearson Education, Inc. Packet Switching Slices digital messages into packets Sends packets along different communication paths as they become available Reassembles packets once they arrive at destination Uses routers  Special purpose computers that interconnect the computer networks that make up the Internet and route packets  Routing algorithms ensure packets take the best available path toward their destination Less expensive, wasteful than circuit-switching Slide 3-28

29. Copyright © 2010 Pearson Education, Inc. Packet Switching Figure 3.3, Page 130 Slide 3-29 Packet Switching Demo http://www.pbs.org/opb/nerds2.0.1/geek_glossary/packet_switching_flash.html

30. Copyright © 2010 Pearson Education, Inc. TCP/IP Transmission Control Protocol (TCP):  Establishes connections between sending and receiving Web computers  Handles assembly of packets at point of transmission, and reassembly at receiving end Internet Protocol (IP):  Provides the Internet’s addressing scheme Four TCP/IP Layers (hourglass model) 1. Network Interface Layer 2. Internet Layer 3. Transport Layer 4. Application Layer Slide 3-30

31. Copyright © 2010 Pearson Education, Inc. The TCP/IP Architecture and Protocol Suite Figure 3.4, Page 132 Slide 3-31

32. Copyright © 2010 Pearson Education, Inc. Routing Internet Messages: TCP/IP and Packet Switching Figure 3.5, Page 133 Slide 3-32

33. Copyright © 2010 Pearson Education, Inc. Internet (IP) Addresses IPv4:  32-bit number  Expressed as series of four sets of separate numbers marked off by periods 201.61.186.227 or 130.111.67.244 Class B address: Network identified by first two sets, computer identified by last set Class C address: Network identified by first three sets, computer identified by last set  New version: IPv6 has 128-bit addresses, able to handle up to 1 quadrillion addresses (IPv4 can only handle 4 billion ) Slide 3-33

34. Checking your IP From start menu, type cmd in search box Under programs, click on cmd Type ipconfig Copyright © 2010 Pearson Education, Inc. Slide 3-34

35. Copyright © 2010 Pearson Education, Inc. Domain Names, DNS, and URLs Domain Name  IP address expressed in natural language  Tonyg.umfk.maine.edu  130.111.67.244 Domain Name System (DNS)  Allows numeric IP addresses to be expressed in natural language Uniform Resource Locator (URL)  Address used by Web browser to identify location of content on the Web  E.g., http://www.azimuth-interactive.com/flash_test  Protocol/server/file Slide 3-35

36. Copyright © 2010 Pearson Education, Inc. Slide 1-36

37. 1-37 How to Pick a Domain Name Pointers for picking domain names  If you sell bricks, pick a domain name containing a word like brick  Consider name length and ease of remembering the name  Hyphens to force search engines to see keywords in your domain name custom-bricks.com  Make sure the domain name is easy for Web users to remember and find  The domain name should suggest the nature of your product or service  The domain name should serve as a trademark  The domain name should be free of legal conflicts

38. 1-38 © 2007 Prentice-Hall, Inc Some memorable Internet names Good names  Amazon.com  Ebay.com  Yahoo.com  Google.com  Alibaba.com  Hotmail.com  qwerty.com Bad names  Yadayada.com  Doggles.com  ePet.com  Teacherstalk.com  “anything”online.com  llanfairpwllgwyngyllgogerychwyrndrob wyll-llantysiliogogogoch.com  Close to an existing name Gooogle.com Goggle.com

39. 1-39 © 2007 Prentice-Hall, Inc How to Register a Domain Name Check if the domain name you propose has been taken www.FasterWhois.com http://www.networksolutions.com/whois/index.jsp One of the most popular and reliable registration sites is www.internic.net/alpha.htmlwww.internic.net/alpha.html  I use www.godaddy.com and www.networksolutions.comwww.godaddy.comwww.networksolutions.com

40. Copyright © 2011 Pearson Education, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Pearson Education, Inc. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall