CHAPTER 3  EBUSINESS

CHAPTER 3 EBUSINESS PowerPoint PPT Presentation


  • 484 Views
  • Uploaded on
  • Presentation posted in: General

Chapter Three Overview. SECTION 3.1 - BUSINESS AND THE INTERNETDisruptive TechnologyEvolution of the InternetAccessing Internet InformationProviding Internet InformationSECTION 3.2 - EBUSINESSEbusiness BasicsEbusiness ModelsOrganizational Strategies for EbusinessMeasuring ebusiness SuccessEbusiness Benefits and ChallengesNew Trends in Ebusiness: Egovernment and Mcommerce.

Download Presentation

CHAPTER 3 EBUSINESS

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


1. This is a good time to recall the opening case and discuss how Amazon’s ebusiness strategy disrupted the bookselling industry Amazon.com – Not Your Average Bookstore There was an interesting article in Business 2.0, July 2006 – The 50 Who Matter Now. Jeff Bezos ranked 42 out of 50. The article offers a different view of Amazon focusing on its needs to be more creative in its business structure. Read the below passage to your students when introducing the Amazon case. This will give your students a different perspective of Amazon and will allow you to initiate a classroom discussion or debate depending on your student’s view of Amazon. “Amazon, the "biggest store on earth," is indeed the biggest non-OEM retailer on the Net. So why does Bezos rank so much lower on the list than representatives from the rest of the Internet's so-called Big Five? As a brand, Amazon is up there with eBay, Google, Microsoft, and Yahoo. But as a business, it has yet to show an ability to keep pace with the rest. Amazon's A9 search engine has not made it a major player in search, and compared with all-virtual retail players like eBay or even Barry Diller's InterActiveCorp, Amazon's physical inventory and infrastructure look increasingly like a ball and chain. Still, Bezos is not to be underestimated. His mantra from day one: Ignore other people's expectations and create a successful business one step at a time. If Bezos has a plan to restore Amazon's reputation as an innovator, he needs to show it soon.” This is a good time to recall the opening case and discuss how Amazon’s ebusiness strategy disrupted the bookselling industry Amazon.com – Not Your Average Bookstore There was an interesting article in Business 2.0, July 2006 – The 50 Who Matter Now. Jeff Bezos ranked 42 out of 50. The article offers a different view of Amazon focusing on its needs to be more creative in its business structure. Read the below passage to your students when introducing the Amazon case. This will give your students a different perspective of Amazon and will allow you to initiate a classroom discussion or debate depending on your student’s view of Amazon. “Amazon, the "biggest store on earth," is indeed the biggest non-OEM retailer on the Net. So why does Bezos rank so much lower on the list than representatives from the rest of the Internet's so-called Big Five? As a brand, Amazon is up there with eBay, Google, Microsoft, and Yahoo. But as a business, it has yet to show an ability to keep pace with the rest. Amazon's A9 search engine has not made it a major player in search, and compared with all-virtual retail players like eBay or even Barry Diller's InterActiveCorp, Amazon's physical inventory and infrastructure look increasingly like a ball and chain. Still, Bezos is not to be underestimated. His mantra from day one: Ignore other people's expectations and create a successful business one step at a time. If Bezos has a plan to restore Amazon's reputation as an innovator, he needs to show it soon.”

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 Section 3.1 begins by discussing disruptive technology with the Internet causing complete business disruption Section 3.1 then focuses on how the Internet began, and how to access and provide information on the Internet Section 3.2 discusses ebusiness models and how departments can use ebusiness to enhance performance Ask your students how many of them have Internet access. How are they accessing the Internet? Soon Internet access will be offered through electrical outlets How will this type of technology change the way people and businesses use the Internet? Section 3.1 begins by discussing disruptive technology with the Internet causing complete business disruption Section 3.1 then focuses on how the Internet began, and how to access and provide information on the Internet Section 3.2 discusses ebusiness models and how departments can use ebusiness to enhance performance Ask your students how many of them have Internet access. How are they accessing the Internet? Soon Internet access will be offered through electrical outlets How will this type of technology change the way people and businesses use the Internet?

3. One-hour film processing and digital cameras both contributed to the demise of Polaroid, a solid company that had an innovative technology and a captive customer base. The dilemma that faced Polaroid is a dilemma that most organization face – the criteria an organization uses to make business decisions for its present business could possibly create issues for its future business. Essentially, what is best for the current business could ruin it in the long term. In the past few years, ebusiness seems to have permeated every aspect of daily life. In just a short time, both individuals and organizations have embraced Internet technologies to enhance productivity, maximize convenience, and improve com­munications globally. This chapter focuses on the disruptive technology, the Internet, and ebusiness processes that are changing the nature of the buyer-seller relationship, the role of information technology (IT), and organizational structures and tasks. The chapter also discusses the opportunities and advantages found with developing ebusinesses. Specific relationships have been developed in the chapter between disruptive technologies and ebusinesses.One-hour film processing and digital cameras both contributed to the demise of Polaroid, a solid company that had an innovative technology and a captive customer base. The dilemma that faced Polaroid is a dilemma that most organization face – the criteria an organization uses to make business decisions for its present business could possibly create issues for its future business. Essentially, what is best for the current business could ruin it in the long term. In the past few years, ebusiness seems to have permeated every aspect of daily life. In just a short time, both individuals and organizations have embraced Internet technologies to enhance productivity, maximize convenience, and improve com­munications globally. This chapter focuses on the disruptive technology, the Internet, and ebusiness processes that are changing the nature of the buyer-seller relationship, the role of information technology (IT), and organizational structures and tasks. The chapter also discusses the opportunities and advantages found with developing ebusinesses. Specific relationships have been developed in the chapter between disruptive technologies and ebusinesses.

4. LEARNING OUTCOMES Compare disruptive and sustaining technologies Explain how the Internet caused disruption among businesses Define the relationship between the Internet and the World Wide Web 3.1 Compare disruptive and sustaining technologies. Disruptive technology – a new way of doing things that initially does not meet the needs of existing customers Disruptive technologies redefine the competitive playing fields of their respective markets and tend to open new markets and destroy old ones Disruptive technologies typically cut into the low end of the marketplace and eventually evolve to displace high-end competitors and their reigning technologies Sustaining technology – produces an improved product customers are eager to buy, such as a faster car or larger hard drive Sustaining technologies tend to provide us with better, faster, and cheaper products in established markets and virtually never lead in markets opened by disruptive technologies 3.2 Explain how the Internet caused disruption among businesses. The Internet has completely disrupted the way businesses operate, employees communicate, and products are developed and sold. Here are a few examples: Travel site Expedia.com is now the biggest leisure-travel agency, with higher profit margins then even American Express $35 billion annual online music downloads are wrecking the traditional music business Dell increases profit margins while cutting prices by using the Internet to link suppliers and customers eBay is one of the nation’s top 15 retailers 3.3. Define the relationship between the Internet and the World Wide Web. The Internet is a global public network of computer networks that pass information from one to another using common computer protocols. The World Wide Web is a global hypertext system that uses the Internet as its transport mechanism. The World Wide Web operates on the Internet. 3.1 Compare disruptive and sustaining technologies. Disruptive technology – a new way of doing things that initially does not meet the needs of existing customers Disruptive technologies redefine the competitive playing fields of their respective markets and tend to open new markets and destroy old ones Disruptive technologies typically cut into the low end of the marketplace and eventually evolve to displace high-end competitors and their reigning technologies Sustaining technology – produces an improved product customers are eager to buy, such as a faster car or larger hard drive Sustaining technologies tend to provide us with better, faster, and cheaper products in established markets and virtually never lead in markets opened by disruptive technologies 3.2 Explain how the Internet caused disruption among businesses. The Internet has completely disrupted the way businesses operate, employees communicate, and products are developed and sold. Here are a few examples: Travel site Expedia.com is now the biggest leisure-travel agency, with higher profit margins then even American Express $35 billion annual online music downloads are wrecking the traditional music business Dell increases profit margins while cutting prices by using the Internet to link suppliers and customers eBay is one of the nation’s top 15 retailers 3.3. Define the relationship between the Internet and the World Wide Web. The Internet is a global public network of computer networks that pass information from one to another using common computer protocols. The World Wide Web is a global hypertext system that uses the Internet as its transport mechanism. The World Wide Web operates on the Internet.

5. LEARNING OUTCOMES Describe the different methods an organization can use to access information Compare the three different types of service providers 3.4 Describe the different methods an organization can use to access information. An organization can use four common tools to access Internet information Intranet – an internalized portion of the Internet, protected from outside access, that allows an organization to provide access to information and application software to only its employees Extranet – an intranet that is available to strategic allies (such as customers, suppliers, and partners) Portal – a website that offers a broad array of resources and services, such as email, online discussion groups, search engines, and online shopping malls Kiosk – a publicly accessible computer system that has been set up to allow interactive information browsing 3.5 Compare the three different types of service providers. There are three common forms of service providers including: Internet service provider (ISP) – a company that provides individuals and other companies access to the Internet along with additional related services, such as website building Online service provider (OSP) – offers an extensive array of unique services such as its own version of a Web browser Application service provider (ASP) – a company that offers an organization access over the Internet to systems and related services that would otherwise have to be located in personal or organizational computers3.4 Describe the different methods an organization can use to access information. An organization can use four common tools to access Internet information Intranet – an internalized portion of the Internet, protected from outside access, that allows an organization to provide access to information and application software to only its employees Extranet – an intranet that is available to strategic allies (such as customers, suppliers, and partners) Portal – a website that offers a broad array of resources and services, such as email, online discussion groups, search engines, and online shopping malls Kiosk – a publicly accessible computer system that has been set up to allow interactive information browsing 3.5 Compare the three different types of service providers. There are three common forms of service providers including: Internet service provider (ISP) – a company that provides individuals and other companies access to the Internet along with additional related services, such as website building Online service provider (OSP) – offers an extensive array of unique services such as its own version of a Web browser Application service provider (ASP) – a company that offers an organization access over the Internet to systems and related services that would otherwise have to be located in personal or organizational computers

6. DISRUPTIVE TECHNOLOGY How can a company like Polaroid go bankrupt? Digital Darwinism – implies that organizations which cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction CLASSROOM OPENER GREAT BUSINESS DECISIONS – Edwin Land Develops the Polaroid Camera In 1937, Edwin Land started a company that made a polarizing plastic and named it Polaroid. The business boomed. Land was taking family pictures on his vacation in 1943 when his three-year-old daughter asked why they had to wait so long to see the developed photographs. Land was struck with the idea of combining the polarization technology with developing films. By 1950, Land had a camera that produced black-and-white images and by 1963, he released a camera that produced color pictures. The Polaroid camera took off and by the late 1960s, it was estimated that 50 percent of American households owned one. If Polaroid executives had used Porter’s Five Forces analysis would they have discovered the threat of substitute products of the digital camera? What could they have done to combat this threat?   CLASSROOM EXERCISE First Movers that Flopped The right technology at the wrong time. This slideshow displays ten products that were first movers but that failed to move beyond that status. http://etech.eweek.com/slideshow/index.php?directory=first_movers Ask your students if they can list any additional first movers that flopped CLASSROOM OPENER GREAT BUSINESS DECISIONS – Edwin Land Develops the Polaroid Camera In 1937, Edwin Land started a company that made a polarizing plastic and named it Polaroid. The business boomed. Land was taking family pictures on his vacation in 1943 when his three-year-old daughter asked why they had to wait so long to see the developed photographs. Land was struck with the idea of combining the polarization technology with developing films. By 1950, Land had a camera that produced black-and-white images and by 1963, he released a camera that produced color pictures. The Polaroid camera took off and by the late 1960s, it was estimated that 50 percent of American households owned one. If Polaroid executives had used Porter’s Five Forces analysis would they have discovered the threat of substitute products of the digital camera? What could they have done to combat this threat?   CLASSROOM EXERCISE First Movers that Flopped The right technology at the wrong time. This slideshow displays ten products that were first movers but that failed to move beyond that status. http://etech.eweek.com/slideshow/index.php?directory=first_movers Ask your students if they can list any additional first movers that flopped

7. Disruptive versus Sustaining Technology What do steamboats, transistor radios, and Intel’s 8088 processor all have in common? 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 What do steamboats, transistor radios, and Intel’s 8088 processor all have in common? They are all disruptive technologies CLASSROOM EXERCISE Disrupting the Classroom Break your students into groups and ask them to identify the primary differences between disruptive and sustaining technologies, along with several current examples of each Disruptive technologies: Disruptive technologies redefine the competitive playing fields of their respective markets Disruptive technologies tend to open new markets and destroy old ones Disruptive technologies typically cut into the low end of the marketplace and eventually evolve to displace high-end competitors and their reigning technologies Sustaining technologies: Sustaining technologies tend to provide us with better, faster, and cheaper products in established markets Sustaining technologies virtually never lead in markets opened by new and disruptive technologies What do steamboats, transistor radios, and Intel’s 8088 processor all have in common? They are all disruptive technologies CLASSROOM EXERCISE Disrupting the Classroom Break your students into groups and ask them to identify the primary differences between disruptive and sustaining technologies, along with several current examples of each Disruptive technologies: Disruptive technologies redefine the competitive playing fields of their respective markets Disruptive technologies tend to open new markets and destroy old ones Disruptive technologies typically cut into the low end of the marketplace and eventually evolve to displace high-end competitors and their reigning technologies Sustaining technologies: Sustaining technologies tend to provide us with better, faster, and cheaper products in established markets Sustaining technologies virtually never lead in markets opened by new and disruptive technologies

8. Disruptive versus Sustaining Technology The above figure only displays the top four and bottom four companies. To review the entire figure please refer students to the text. This figure displays companies that are expecting future growth to occur from new investments (disruptive technologies) and companies that are expecting future growth to occur from existing investment (sustaining technologies) Ask your students to list additional companies, not mentioned in the figure, that depend mostly on new investments (disruptive technologies) for profits Ask your students to list additional companies, not mentioned in the figure, that depend mostly on existing investments (sustaining technologies) for profitsThe above figure only displays the top four and bottom four companies. To review the entire figure please refer students to the text. This figure displays companies that are expecting future growth to occur from new investments (disruptive technologies) and companies that are expecting future growth to occur from existing investment (sustaining technologies) Ask your students to list additional companies, not mentioned in the figure, that depend mostly on new investments (disruptive technologies) for profits Ask your students to list additional companies, not mentioned in the figure, that depend mostly on existing investments (sustaining technologies) for profits

9. Disruptive versus Sustaining Technology Innovator’s Dilemma - discusses how established companies can take advantage of disruptive technologies without hindering existing relationships with customers, partners, and stakeholders The Innovator’s Dilemma is a book by Clayton M. Christensen Companies like Xerox, IBM, Sears, and DEC all listened to existing customers, invented aggressively in technology, had their competitive antenna up, and still lost their market-dominate positions Christensen believes that these companies placed too great an emphasis on satisfying customers’ current needs, while forgetting to adopt new disruptive technology that will meet customers’ future needs, thus causing the companies to eventually fall behind Ask your student to identify several additional companies that fell victim to the innovator’s dilemma CLASSROOM EXERCISE Clayton in the Classroom Show your student’s the video on MIT highlighting Clayton Christensen http://mitworld.mit.edu/video/108/ The Innovator’s Dilemma is a book by Clayton M. Christensen Companies like Xerox, IBM, Sears, and DEC all listened to existing customers, invented aggressively in technology, had their competitive antenna up, and still lost their market-dominate positions Christensen believes that these companies placed too great an emphasis on satisfying customers’ current needs, while forgetting to adopt new disruptive technology that will meet customers’ future needs, thus causing the companies to eventually fall behind Ask your student to identify several additional companies that fell victim to the innovator’s dilemma CLASSROOM EXERCISE Clayton in the Classroom Show your student’s the video on MIT highlighting Clayton Christensen http://mitworld.mit.edu/video/108/

10. Disruptive versus Sustaining Technology CLASSROOM EXERCISE Capitalized Companies Take each of the nine companies listed above and distribute them to your students either in groups or individually Ask your students to determine if the company is still gaining a competitive advantage from its use of disruptive technology? If not, what happened? CLASSROOM EXERCISE Capitalized Companies Take each of the nine companies listed above and distribute them to your students either in groups or individually Ask your students to determine if the company is still gaining a competitive advantage from its use of disruptive technology? If not, what happened?

11. The Internet – Business Disruption One of the biggest forces changing business is the Internet Organizations must be able to transform as markets, economic environments, and technologies change Focusing on the unexpected allows an organization to capitalize on the opportunity for new business growth from a disruptive technology Do your students agree that the Internet is an example of a disruptive technology? When it was first introduced would they consider it a form of disruptive technology? CLASSROOM EXERCISE Finding Innovation Innovation, new ideas, and new technology are exciting. It is currently estimated that everything we know technically will represent 1 percent of all technology in 2050. Break your students into groups and ask them to search the Internet for the most exciting form of innovation that is going to hit our market and change our lives over the next ten years. Have your students present their findings to the class and offer a small prize to the winner. A few examples include: Computers that offer smells, click on a perfume and the scent permeates from your computer, movie theatres will offer smells that correspond to the movie Electronic toilets – analyze output and let you know if you getting sick days before the cold actually hits. Great for rest homes and hospitals Planes the size of small ships that offer shopping and restaurants Ships the size of small cities where you can purchase an apartment What's For Dinner? Just Call Your Refrigerator – show your student’s the kitchen of the future http://www.geconsumerproducts.com/pressroom/press_releases/company/company/kitchenoffuture_article_06.htm Do your students agree that the Internet is an example of a disruptive technology? When it was first introduced would they consider it a form of disruptive technology? CLASSROOM EXERCISE Finding Innovation Innovation, new ideas, and new technology are exciting. It is currently estimated that everything we know technically will represent 1 percent of all technology in 2050. Break your students into groups and ask them to search the Internet for the most exciting form of innovation that is going to hit our market and change our lives over the next ten years. Have your students present their findings to the class and offer a small prize to the winner. A few examples include: Computers that offer smells, click on a perfume and the scent permeates from your computer, movie theatres will offer smells that correspond to the movie Electronic toilets – analyze output and let you know if you getting sick days before the cold actually hits. Great for rest homes and hospitals Planes the size of small ships that offer shopping and restaurants Ships the size of small cities where you can purchase an apartment What's For Dinner? Just Call Your Refrigerator – show your student’s the kitchen of the future http://www.geconsumerproducts.com/pressroom/press_releases/company/company/kitchenoffuture_article_06.htm

12. The Internet – Business Disruption Estimates predict more than 3 billion Internet users by 2010 There were 1 billion Internet users in 2005 How will 2 billion additional Internet users change the competitive landscape for businesses over the next few years? Greater access to a larger number of customers More competitors Location and distance becomes a smaller factor for businessesThere were 1 billion Internet users in 2005 How will 2 billion additional Internet users change the competitive landscape for businesses over the next few years? Greater access to a larger number of customers More competitors Location and distance becomes a smaller factor for businesses

13. The Internet – Business Disruption Estimates predict more than 3 billion Internet users by 2010 There were 1 billion Internet users in 2005 How will 2 billion additional Internet users change the competitive landscape for businesses over the next few years? Greater access to a larger number of customers More competitors Location and distance becomes a smaller factor for businessesThere were 1 billion Internet users in 2005 How will 2 billion additional Internet users change the competitive landscape for businesses over the next few years? Greater access to a larger number of customers More competitors Location and distance becomes a smaller factor for businesses

14. The Internet – Business Disruption The Internet has had an impact on almost every industry including: Travel Entertainment Electronics Financial services Retail Automobiles Education and training Industry Business Changes Due to Technology Travel Travel site Expedia.com is now the biggest leisure-travel agency, with higher profit margins than even American Express. Thirteen percent of traditional travel agencies closed in 2002 because of their inability to compete with online travel. Entertainment The music industry has kept Napster and others from operating, but $35 billion annual online downloads are wrecking the traditional music business. U.S. music unit sales are down 20 percent since 2000. The next big entertainment industry to feel the effects of ebusiness will be the $67 billion movie business. Electronics Using the Internet to link suppliers and customers, Dell dictates industry profits. Its operating margins have risen from 7.3 percent in 2002 to 8 percent in 2003, even as it takes prices to levels where rivals cannot make money. Financial services Nearly every public e-finance company left makes money, with online mortgage service Lending Tree growing 70 percent a year. Processing online mortgage applications is now 40 percent cheaper for customers. Retail Less than 5 percent of retail sales occur online. eBay is on track this year to become one of the nation’s top 15 retailers, and Amazon.com will join the top 40. Wal-Mart’s ebusiness strategy is forcing rivals to make heavy investments in technology. Automobiles The cost of producing vehicles is down because of SCM and Web-based purchasing. eBay has become the leading U.S. used-car dealer, and most major car sites are profitable. Education and training Cisco saved $133 million last year by moving training sessions to the Internet, and the University of Phoenix online college classes please investors. CLASSROOM EXERCISE Business Disruption Break your students into groups and assign them each a different industry from above Ask them to review the Figure which displays the Internet’s impact on each industry and have them update how new technologies are changing these industries even furtherIndustry Business Changes Due to Technology Travel Travel site Expedia.com is now the biggest leisure-travel agency, with higher profit margins than even American Express. Thirteen percent of traditional travel agencies closed in 2002 because of their inability to compete with online travel. Entertainment The music industry has kept Napster and others from operating, but $35 billion annual online downloads are wrecking the traditional music business. U.S. music unit sales are down 20 percent since 2000. The next big entertainment industry to feel the effects of ebusiness will be the $67 billion movie business. Electronics Using the Internet to link suppliers and customers, Dell dictates industry profits. Its operating margins have risen from 7.3 percent in 2002 to 8 percent in 2003, even as it takes prices to levels where rivals cannot make money. Financial services Nearly every public e-finance company left makes money, with online mortgage service Lending Tree growing 70 percent a year. Processing online mortgage applications is now 40 percent cheaper for customers. Retail Less than 5 percent of retail sales occur online. eBay is on track this year to become one of the nation’s top 15 retailers, and Amazon.com will join the top 40. Wal-Mart’s ebusiness strategy is forcing rivals to make heavy investments in technology. Automobiles The cost of producing vehicles is down because of SCM and Web-based purchasing. eBay has become the leading U.S. used-car dealer, and most major car sites are profitable. Education and training Cisco saved $133 million last year by moving training sessions to the Internet, and the University of Phoenix online college classes please investors. CLASSROOM EXERCISE Business Disruption Break your students into groups and assign them each a different industry from above Ask them to review the Figure which displays the Internet’s impact on each industry and have them update how new technologies are changing these industries even further

15. 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 Internet Protocol Internet – computer networks that pass information from one to another using common computer protocols Protocol – standards that specify the format of data as well as the rules to be followed during transmission CLASSROOM EXERCISE Where the Internet Really Started Ask students, “How did the Internet (really) get started.” A few responses might include: Al Gore (“Information Superhighway”), or the Department of Defense (ARPANET), or even Bill Gates (Microsoft) Ask students to “Imagine an almost instantaneous communication system that would allow people and governments all over the world to send and receive messages about politics, war, illness, and family events. The government has tried and failed to control it.” Was it the Internet? Nope, the humble telegraph fit this bill way back in the 1800s. The parallels between the now-ubiquitous Internet and the telegraph are amazing, offering insight into the ways new technologies can change the very fabric of society within a single generation. Emphasize the history of the telegraph: Begin with the funny story of a mile-long line of monks holding a wire and getting simultaneous shocks in the interest of investigating electricity, and ending with the advent of the telephone (this is the true scenario) Discuss the early “online” pioneers: Samuel Morse, Thomas Edison, and a seemingly endless parade of code-makers, entrepreneurs, and spies who helped ensure the success of this communications revolution With the invention of the telegraph, the world of communications was forever changed. The telegraph gave rise to creative business practices and new forms of crime. Romances blossomed over its wires. In addition, attitudes toward everything from news gathering to war had to be completely rethought. The saga of the telegraph offers many parallels to that of the Internet in our own time, and is a remarkable episode in the history of technology. Internet – computer networks that pass information from one to another using common computer protocols Protocol – standards that specify the format of data as well as the rules to be followed during transmission CLASSROOM EXERCISE Where the Internet Really Started Ask students, “How did the Internet (really) get started.” A few responses might include: Al Gore (“Information Superhighway”), or the Department of Defense (ARPANET), or even Bill Gates (Microsoft) Ask students to “Imagine an almost instantaneous communication system that would allow people and governments all over the world to send and receive messages about politics, war, illness, and family events. The government has tried and failed to control it.” Was it the Internet? Nope, the humble telegraph fit this bill way back in the 1800s. The parallels between the now-ubiquitous Internet and the telegraph are amazing, offering insight into the ways new technologies can change the very fabric of society within a single generation. Emphasize the history of the telegraph: Begin with the funny story of a mile-long line of monks holding a wire and getting simultaneous shocks in the interest of investigating electricity, and ending with the advent of the telephone (this is the true scenario) Discuss the early “online” pioneers: Samuel Morse, Thomas Edison, and a seemingly endless parade of code-makers, entrepreneurs, and spies who helped ensure the success of this communications revolution With the invention of the telegraph, the world of communications was forever changed. The telegraph gave rise to creative business practices and new forms of crime. Romances blossomed over its wires. In addition, attitudes toward everything from news gathering to war had to be completely rethought. The saga of the telegraph offers many parallels to that of the Internet in our own time, and is a remarkable episode in the history of technology.

16. Evolution of the World Wide Web World Wide Web (WWW) – a global hypertext system that uses the Internet as its transport mechanism Hypertext transport protocol (HTTP) – the Internet standard that supports the exchange of information on the WWW Are the Internet and the WWW synonymous? People often interchange the terms Internet and the World Wide Web, but these terms are not synonymous The Internet is a global public network of computer networks that pass information from one to another using common computer protocols The World Wide Web is a global hypertext system that uses the Internet as its transport mechanism The World Wide Web operates on the Internet CLASSROOM EXERCISE The 13 Most Embarrassing Web Moments The Internet is the most efficient information distribution system ever known. But if you're not careful, it's also the perfect way to embarrass yourself in front of the entire world. http://www.pcworld.com/article/id,127823-page,1/article.html Are the Internet and the WWW synonymous? People often interchange the terms Internet and the World Wide Web, but these terms are not synonymous The Internet is a global public network of computer networks that pass information from one to another using common computer protocols The World Wide Web is a global hypertext system that uses the Internet as its transport mechanism The World Wide Web operates on the Internet CLASSROOM EXERCISE The 13 Most Embarrassing Web Moments The Internet is the most efficient information distribution system ever known. But if you're not careful, it's also the perfect way to embarrass yourself in front of the entire world.http://www.pcworld.com/article/id,127823-page,1/article.html

17. Evolution of the World Wide Web Reasons for growth of the WWW Microcomputer revolution Advancements in networking Easy browser software Speed, convenience, and low cost of email Web pages easy to create and flexible What are the two primary reasons for growth of the WWW? Two events changed the history of the Internet On August 6, 1991 Tim Berners-Lee built the first website Marc Andreesen built and distributed Mosaic CLASSROOM EXERCISE VIDEO INTERVIEW The big talk at the WWW2006 conference is about the semantic web with its promise of an "intelligent" net Pallab Ghosh caught up with Sir Tim Berners-Lee - the man who invented the world wide web back in 1991 http://news.bbc.co.uk/nolavconsole/ukfs_news/hi/newsid_5010000/newsid_5014600/nb_wm_5014644.stm What are the two primary reasons for growth of the WWW? Two events changed the history of the Internet On August 6, 1991 Tim Berners-Lee built the first website Marc Andreesen built and distributed Mosaic CLASSROOM EXERCISE VIDEO INTERVIEW The big talk at the WWW2006 conference is about the semantic web with its promise of an "intelligent" net Pallab Ghosh caught up with Sir Tim Berners-Lee - the man who invented the world wide web back in 1991 http://news.bbc.co.uk/nolavconsole/ukfs_news/hi/newsid_5010000/newsid_5014600/nb_wm_5014644.stm

18. Evolution of the World Wide Web The Internet’s impact on information Easy to compile Increased richness Increased reach Improved content What is the difference between information richness and information reach? Information richness refers to the depth and breath of information transferred between customers and business Instead of a company catalog with a simple text box and perhaps a small photo, the Web allows companies to post 3-dimensional photos, video, customer reviews, newspaper and magazine articles, product comparisons including price, etc. Information reach refers to the number of people a business can communicate with, on a global basis Companies can now reach customers around the world, not just customers who can physically travel to their store Internet’s Impact on Information Easy to compile - Searching for information on products, prices, customers, suppliers, and partners is faster and easier when using the Internet. Increased richness - refers to the depth and breadth of information transferred between customers and business. Businesses and customers can collect and track more detailed information when using the Internet. Increased reach - refers to the number of people a business can communicate with, on a global basis. Businesses can share information with numerous customers all over the world. Improved content - A key element of the Internet is its ability to provide dynamic relevant content. Buyers need good content descriptions to make informed purchases, and sellers use content to properly market and differentiate themselves from the competition. Content and product description establish the common understanding between both parties to the transaction. As a result, the reach and richness of that content directly affects the transaction. What is the difference between information richness and information reach? Information richness refers to the depth and breath of information transferred between customers and business Instead of a company catalog with a simple text box and perhaps a small photo, the Web allows companies to post 3-dimensional photos, video, customer reviews, newspaper and magazine articles, product comparisons including price, etc. Information reach refers to the number of people a business can communicate with, on a global basis Companies can now reach customers around the world, not just customers who can physically travel to their store Internet’s Impact on Information Easy to compile - Searching for information on products, prices, customers, suppliers, and partners is faster and easier when using the Internet. Increased richness - refers to the depth and breadth of information transferred between customers and business. Businesses and customers can collect and track more detailed information when using the Internet. Increased reach - refers to the number of people a business can communicate with, on a global basis. Businesses can share information with numerous customers all over the world. Improved content - A key element of the Internet is its ability to provide dynamic relevant content. Buyers need good content descriptions to make informed purchases, and sellers use content to properly market and differentiate themselves from the competition. Content and product description establish the common understanding between both parties to the transaction. As a result, the reach and richness of that content directly affects the transaction.

19. Evolution of the World Wide Web File formats offered over the WWW For the reasons discussed in the previous slide, information reach and information richness, companies want to be able to post audio, video, graphic and text files to help run their businesses CLASSROOM EXERCISE Formatting the Web Ask your students their majors – accounting, finance, marketing, management, human resources, information technology, etc. List the different majors on the board and ask them how each one can use the different file formats to improve the way they achieve tasks Accounting – video and audio files for audits Marketing – all formats for website sales and marketing campaigns Finance – video and audio files for training on new tax laws or training new employees how to use the systems Human Resources – video and audio files for training and demonstration of sexual harassment or unethical behavior that is not tolerated by the companyFor the reasons discussed in the previous slide, information reach and information richness, companies want to be able to post audio, video, graphic and text files to help run their businesses CLASSROOM EXERCISE Formatting the Web Ask your students their majors – accounting, finance, marketing, management, human resources, information technology, etc. List the different majors on the board and ask them how each one can use the different file formats to improve the way they achieve tasks Accounting – video and audio files for audits Marketing – all formats for website sales and marketing campaigns Finance – video and audio files for training on new tax laws or training new employees how to use the systems Human Resources – video and audio files for training and demonstration of sexual harassment or unethical behavior that is not tolerated by the company

20. Evolution of the World Wide Web The Internet makes it possible to perform business in ways not previously imaginable It can also cause a digital divide Digital divide – when those with access to technology have great advantages over those without access to technology People living in the village of Siroha, India, must bike five miles to find a telephone. For over 700 million rural people living in India, the digital divide was a way of life, until recently. Media Lab Asia sells telephony and e-mail services via a mobile Internet kiosk mounted on a bicycle, which is known as an “info-thelas.” The kiosk has an onboard computer equipped with an antenna for Internet service and a specially designed all-day battery. Over 2,000 villages have purchased the kiosk for $1,200, and another 600,000 villages are interested What impact does the digital divide have on society? How is MIT’s $100 laptop program going to help the digital divide?People living in the village of Siroha, India, must bike five miles to find a telephone. For over 700 million rural people living in India, the digital divide was a way of life, until recently. Media Lab Asia sells telephony and e-mail services via a mobile Internet kiosk mounted on a bicycle, which is known as an “info-thelas.” The kiosk has an onboard computer equipped with an antenna for Internet service and a specially designed all-day battery. Over 2,000 villages have purchased the kiosk for $1,200, and another 600,000 villages are interested What impact does the digital divide have on society? How is MIT’s $100 laptop program going to help the digital divide?

21. WEB 2.0 Web 2.0 - a set of economic, social, and technology trends that collectively form the basis for the next generation of the Internet Web 2.0 is a set of economic, social, and technology trends that collectively form the basis for the next generation of the Internet—a more mature, distinctive medium characterized by user participation, openness, and network effects. Although the term suggests a new version of the World Wide Web, it does not refer to an update to Web technical specifications; instead, it refers to changes in the ways software developers and end-users use the Web as a platform. According to Tim O’Reilly, “Web 2.0 is the business revolution in the computer industry caused by the move to the Internet as platform, and an attempt to understand the rules for success on that new platform.” The text figures displays the move from Web 1.0 to Web 2.0, and the timeline of Web 1.0 and Web 2.0. CLASSROOM EXERCISE The Web’s Most Useful Sights You have lots of stuff to get done. And these next-generation services can help with everything from wrangling passwords to throwing a party. http://tech.msn.com/products/article.aspx?cp-documentid=2521180 Will these sites be useful in Web 2.0? How will these sites be different in Web 2.0? Web 2.0 is a set of economic, social, and technology trends that collectively form the basis for the next generation of the Internet—a more mature, distinctive medium characterized by user participation, openness, and network effects. Although the term suggests a new version of the World Wide Web, it does not refer to an update to Web technical specifications; instead, it refers to changes in the ways software developers and end-users use the Web as a platform. According to Tim O’Reilly, “Web 2.0 is the business revolution in the computer industry caused by the move to the Internet as platform, and an attempt to understand the rules for success on that new platform.” The text figures displays the move from Web 1.0 to Web 2.0, and the timeline of Web 1.0 and Web 2.0. CLASSROOM EXERCISE The Web’s Most Useful Sights You have lots of stuff to get done. And these next-generation services can help with everything from wrangling passwords to throwing a party. http://tech.msn.com/products/article.aspx?cp-documentid=2521180 Will these sites be useful in Web 2.0? How will these sites be different in Web 2.0?

22. WEB 2.0 More than just the latest technology buzzword, Web 2.0 is a transformative force that is propelling companies across all industries toward a new way of doing business. Those who act on the Web 2.0 opportunity stand to gain an early-mover advantage in their markets. What is causing this change? Consider the following raw demographic and technological drivers: One billion people around the globe now have access to the Internet. Mobile devices outnumber desktop computers by a factor of two. Nearly 50 percent of all U.S. Internet access is now via always-on broadband connections. Combine these drivers with the fundamental laws of social networks and lessons from the Web’s first decade, and you get Web 2.0, the next-generation, user-driven, intelligent Web: In the first quarter of 2006, MySpace.com signed up 280,000 new users each day and had the second most Internet traffic of any web site. By the second quarter of 2006, 50 million blogs were created—new ones were added at a rate of two per second. In 2005, eBay conducted 8 billion API-based Web services transactions. More than just the latest technology buzzword, Web 2.0 is a transformative force that is propelling companies across all industries toward a new way of doing business. Those who act on the Web 2.0 opportunity stand to gain an early-mover advantage in their markets. What is causing this change? Consider the following raw demographic and technological drivers: One billion people around the globe now have access to the Internet. Mobile devices outnumber desktop computers by a factor of two. Nearly 50 percent of all U.S. Internet access is now via always-on broadband connections. Combine these drivers with the fundamental laws of social networks and lessons from the Web’s first decade, and you get Web 2.0, the next-generation, user-driven, intelligent Web: In the first quarter of 2006, MySpace.com signed up 280,000 new users each day and had the second most Internet traffic of any web site. By the second quarter of 2006, 50 million blogs were created—new ones were added at a rate of two per second. In 2005, eBay conducted 8 billion API-based Web services transactions.

23. Mashups Web mashup - a website or web application that uses content from more than one source to create a completely new service Application programming interface (API) - a set of routines, protocols, and tools for building software applications Mashup editor - WSYIWYGs (What You See Is What You Get) for mashups A Web mashup is a website or web application that uses content from more than one source to create a completely new service. The term is typically used in the context of music; putting Jay-Z lyrics over a Radiohead song makes something old become new. The Web version of a mashup allows users to mix map data, photos, video, news feeds, blog entries and so on. Content used in mashups is typically sourced from an application programming interface (API), which is a set of routines, protocols, and tools for building software applications. Mashup editors are WSYIWYGs (What You See Is What You Get) for mashups. They provide a visual interface to build a mashup, often allowing the user to drag and drop data points into a Web application 1001 Secret Fishing Holes: Over a thousand fishing spots in national parks, wildlife refuges, lakes, campgrounds, historic trails etc. (Google Maps API). 25 Best Companies to Work For: Map of the 100 best U.S. companies to work for as rated by Fortune magazine. (Google Maps API). Album Covers: Uses the Amazon API and an Ajax-style user interface to retrieve CD/DVD covers from the Amazon catalog (Amazon eCommerce API). Gawker: A handy mashup for keeping up with celebrity sightings in New York City. Readers are encouraged to e-mail as soon as the celeb is spotted (Google Maps API). Gigul8tor: Provides a data entry page where bands can enter information about upcoming gigs and venues. Gigul8tor displays a list of possible locations depending on the venue engine and enters event information right into Eventful in an interface designed just for bands. It shows how different user interfaces could be built in front of Eventful with mashup techniques. GBlinker: A Google pin wired to a serial port so it flashes when e-mail arrives. OpenKapow: Offers a platform for creating Web-based APIs, feeds, and HTML snippets from any Web site, taking mashup possibilities way beyond the move than 300 APIs offered on ProgrammableWeb. The Hype Machine: Combines blog posts from a set of curated music blogs with Amazon sales data and upcoming events. The Hype Machine tracks songs and discussion posted on the best blogs about music. It integrates with iTunes to take customers right from the Web page to the track they are interested in. If the customer prefers buying through Amazon, The Hype Machine figures out what CD page to display. A Web mashup is a website or web application that uses content from more than one source to create a completely new service. The term is typically used in the context of music; putting Jay-Z lyrics over a Radiohead song makes something old become new. The Web version of a mashup allows users to mix map data, photos, video, news feeds, blog entries and so on. Content used in mashups is typically sourced from an application programming interface (API), which is a set of routines, protocols, and tools for building software applications. Mashup editors are WSYIWYGs (What You See Is What You Get) for mashups. They provide a visual interface to build a mashup, often allowing the user to drag and drop data points into a Web application 1001 Secret Fishing Holes: Over a thousand fishing spots in national parks, wildlife refuges, lakes, campgrounds, historic trails etc. (Google Maps API). 25 Best Companies to Work For: Map of the 100 best U.S. companies to work for as rated by Fortune magazine. (Google Maps API). Album Covers: Uses the Amazon API and an Ajax-style user interface to retrieve CD/DVD covers from the Amazon catalog (Amazon eCommerce API). Gawker: A handy mashup for keeping up with celebrity sightings in New York City. Readers are encouraged to e-mail as soon as the celeb is spotted (Google Maps API). Gigul8tor: Provides a data entry page where bands can enter information about upcoming gigs and venues. Gigul8tor displays a list of possible locations depending on the venue engine and enters event information right into Eventful in an interface designed just for bands. It shows how different user interfaces could be built in front of Eventful with mashup techniques. GBlinker: A Google pin wired to a serial port so it flashes when e-mail arrives. OpenKapow: Offers a platform for creating Web-based APIs, feeds, and HTML snippets from any Web site, taking mashup possibilities way beyond the move than 300 APIs offered on ProgrammableWeb. The Hype Machine: Combines blog posts from a set of curated music blogs with Amazon sales data and upcoming events. The Hype Machine tracks songs and discussion posted on the best blogs about music. It integrates with iTunes to take customers right from the Web page to the track they are interested in. If the customer prefers buying through Amazon, The Hype Machine figures out what CD page to display.

24. THE FUTURE – WEB 3.0 Semantic web encompasses the following: Transforming the web into a database An evolutionary path to artificial intelligence The realization of semantic web and SOA Evolution toward 3D Transforming the Web into a Database The first step toward a Web 3.0 is the emergence of the data-driven Web as structured data records are published to the Web in formats that are reusable and able to be queried remotely. Because of the recent growth of standardized query language for searching across distributed databases on the Web, the data-driven Web enables a new level of data integration and application interoperability, making data as openly accessible and linkable as Web pages. The data-driven Web is the first step on the path toward the full semantic Web. In the data-driven Web phase, the focus is on making structured data available using databases. The full semantic Web stage will widen the scope such that both structured data and even what is traditionally thought of as unstructured or semistructured content (such as Web pages, documents, email, etc.) will be widely available in common formats. An Evolutionary Path to Artificial Intelligence Web 3.0 has also been used to describe an evolutionary path for the Web that leads to artificial intelligence that can reason about the Web in a quasi-human fashion. Some skeptics regard this as an unobtainable vision. However, companies such as IBM and Google are implementing new technologies that are yielding surprising information, such as predicting hit songs by mining information on college music Web sites. There is also debate over whether the driving force behind Web 3.0 will be intelligent systems, or whether intelligence will emerge in a more organic fashion, from systems of intelligent people, such as via collaborative filtering services like del.icio.us, Flickr, and Digg that extract meaning and order from the existing Web and how people interact with it. The Realization of the Semantic Web and SOA Related to the artificial intelligence direction, Web 3.0 could be the realization of a possible convergence of the semantic Web and service-oriented architecture (SOA). Companies have longed to integrate existing systems in order to implement information technology support for business processes that cover the entire business value chain. The main drivers for SOA adoption are that it links computational resources and promotes their reuse. Enterprise architects believe that SOA can help businesses respond more quickly and cost-effectively to changing market conditions. This style of architecture can simplify interconnection to—and usage of—existing IT (legacy) assets. Evolution Toward 3D Another possible path for Web 3.0 is toward the three-dimensional vision championed by the Web3D Consortium. This would involve the Web transforming into a series of 3D spaces, taking the concept realized by Second Life further. This could open up new ways to connect and collaborate using 3D shared spaces. Transforming the Web into a Database The first step toward a Web 3.0 is the emergence of the data-driven Web as structured data records are published to the Web in formats that are reusable and able to be queried remotely. Because of the recent growth of standardized query language for searching across distributed databases on the Web, the data-driven Web enables a new level of data integration and application interoperability, making data as openly accessible and linkable as Web pages. The data-driven Web is the first step on the path toward the full semantic Web. In the data-driven Web phase, the focus is on making structured data available using databases. The full semantic Web stage will widen the scope such that both structured data and even what is traditionally thought of as unstructured or semistructured content (such as Web pages, documents, email, etc.) will be widely available in common formats. An Evolutionary Path to Artificial Intelligence Web 3.0 has also been used to describe an evolutionary path for the Web that leads to artificial intelligence that can reason about the Web in a quasi-human fashion. Some skeptics regard this as an unobtainable vision. However, companies such as IBM and Google are implementing new technologies that are yielding surprising information, such as predicting hit songs by mining information on college music Web sites. There is also debate over whether the driving force behind Web 3.0 will be intelligent systems, or whether intelligence will emerge in a more organic fashion, from systems of intelligent people, such as via collaborative filtering services like del.icio.us, Flickr, and Digg that extract meaning and order from the existing Web and how people interact with it. The Realization of the Semantic Web and SOA Related to the artificial intelligence direction, Web 3.0 could be the realization of a possible convergence of the semantic Web and service-oriented architecture (SOA). Companies have longed to integrate existing systems in order to implement information technology support for business processes that cover the entire business value chain. The main drivers for SOA adoption are that it links computational resources and promotes their reuse. Enterprise architects believe that SOA can help businesses respond more quickly and cost-effectively to changing market conditions. This style of architecture can simplify interconnection to—and usage of—existing IT (legacy) assets. Evolution Toward 3D Another possible path for Web 3.0 is toward the three-dimensional vision championed by the Web3D Consortium. This would involve the Web transforming into a series of 3D spaces, taking the concept realized by Second Life further. This could open up new ways to connect and collaborate using 3D shared spaces.

25. 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 – website that offers a broad array of resources and services Kiosk – publicly accessible computer system that allows interactive information browsing Which access methods does your college provide? Intranet – student or faculty and staff sites such as Blackboard or WebCT Extranet – for potential students and partners Portal – a place where students or faculty and staff can access all of their applications such as registration, billing, grades, Blackboard or WebCT, and email Kiosk – places around the campus where students can logon to the Internet If your college does not provide each type of access why might it want to start? What benefits can be added to your college through the use of kiosks or portals?Which access methods does your college provide? Intranet – student or faculty and staff sites such as Blackboard or WebCT Extranet – for potential students and partners Portal – a place where students or faculty and staff can access all of their applications such as registration, billing, grades, Blackboard or WebCT, and email Kiosk – places around the campus where students can logon to the Internet If your college does not provide each type of access why might it want to start? What benefits can be added to your college through the use of kiosks or portals?

26. 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 Internet service provider (ISP) – a company that provides individuals and other companies access to the Internet along with additional related services, such as website building. Many but not all ISPs are telephone companies. ISPs provide services such as Internet transit, domain name registration and hosting, dial-up or DSL access, leased line access, and collocation. ISPs mostly provide access to the Internet and charge a monthly access fee to the consumer. Online service provider (OSP) – offers an extensive array of unique services such as its own version of a Web browser. An OSP offers services such as access to private computer networks and information resources such a bulletin boards, downloadable programs, news articles, chat rooms, and electronic mail services. Application service provider (ASP) – a company that offers an organization access over the Internet to systems and related services that would otherwise have to be located in personal or organizational computers. Software offered using an ASP model is also sometimes called On-demand software. The most limited sense of this business is that of providing access to a particular application program (such as medical billing) using a standard protocol such as HTTP. The need for ASPs has evolved from the increasing costs of specialized software that have far exceeded the price range of small to medium sized businesses. As well, the growing complexities of software have lead to huge costs in distributing the software to end-users. Through ASPs, the complexities and costs of such software can be cut down. In addition, the issues of upgrading have been eliminated from the end-firm by placing the onus on the ASP to maintain up-to-date service.Internet service provider (ISP) – a company that provides individuals and other companies access to the Internet along with additional related services, such as website building. Many but not all ISPs are telephone companies. ISPs provide services such as Internet transit, domain name registration and hosting, dial-up or DSL access, leased line access, and collocation. ISPs mostly provide access to the Internet and charge a monthly access fee to the consumer. Online service provider (OSP) – offers an extensive array of unique services such as its own version of a Web browser. An OSP offers services such as access to private computer networks and information resources such a bulletin boards, downloadable programs, news articles, chat rooms, and electronic mail services. Application service provider (ASP) – a company that offers an organization access over the Internet to systems and related services that would otherwise have to be located in personal or organizational computers. Software offered using an ASP model is also sometimes called On-demand software. The most limited sense of this business is that of providing access to a particular application program (such as medical billing) using a standard protocol such as HTTP. The need for ASPs has evolved from the increasing costs of specialized software that have far exceeded the price range of small to medium sized businesses. As well, the growing complexities of software have lead to huge costs in distributing the software to end-users. Through ASPs, the complexities and costs of such software can be cut down. In addition, the issues of upgrading have been eliminated from the end-firm by placing the onus on the ASP to maintain up-to-date service.

27. PROVIDING INTERNET INFORMATION Common ISP services include: Web hosting Hard-disk storage space Availability Support Service level agreements (SLA) - define the specific responsibilities of the service provider and sets customer expectations Common ISP Services Web hosting. Housing, serving, and maintaining files for one or more websites is a widespread offering. Hard-disk storage space. Smaller sites may need only 300 to 500 MB (megabytes) of website storage space, whereas other ebusiness sites may need at least 10 GB (gigabytes) of space or their own dedicated Web server. Availability. To run an ebusiness, a site must be accessible to customers 24x7. ISPs maximize the availability of the sites they host using techniques such as load balancing and clustering many servers to reach 100 percent availability. Support. A big part of turning to an ISP is that there is limited worry about keeping the Web server running. Most ISPs offer 24x7 customer service. Discuss the Figure in the text which displays the top ISPs, OSPs, and ASPs Why is it important to have an SLA? What could happen to a business that did not have an SLA with its ASP? CLASSROOM EXERCISE Service Please Break your students into groups and ask them what different types of services are offered from the various ISPs http://www.webhostinginspector.com/ for a look at the top ten different types of ISP hosting services Which ISPs do your students use? How did they choose their ISP vendor? Which factors would they recommend a friend research when looking for an ISP vendor? Common ISP Services Web hosting. Housing, serving, and maintaining files for one or more websites is a widespread offering. Hard-disk storage space. Smaller sites may need only 300 to 500 MB (megabytes) of website storage space, whereas other ebusiness sites may need at least 10 GB (gigabytes) of space or their own dedicated Web server. Availability. To run an ebusiness, a site must be accessible to customers 24x7. ISPs maximize the availability of the sites they host using techniques such as load balancing and clustering many servers to reach 100 percent availability. Support. A big part of turning to an ISP is that there is limited worry about keeping the Web server running. Most ISPs offer 24x7 customer service. Discuss the Figure in the text which displays the top ISPs, OSPs, and ASPs Why is it important to have an SLA? What could happen to a business that did not have an SLA with its ASP? CLASSROOM EXERCISE Service Please Break your students into groups and ask them what different types of services are offered from the various ISPs http://www.webhostinginspector.com/ for a look at the top ten different types of ISP hosting services Which ISPs do your students use? How did they choose their ISP vendor? Which factors would they recommend a friend research when looking for an ISP vendor?

28. PROVIDING INTERNET INFORMATION Wireless Internet service provider (WISP) Wireless Internet service provider (WISP)– an ISP that allows subscribers to connect to a server at designated hotspots or access points using a wireless connection How can your college use a WISP to improve service? Which areas do you recommend the WISP be accessible? Just buildings? Outside? What are the additional security threats your college would need to be aware of if it implemented a WISP? The world's largest software maker, Microsoft, has been briefing record companies on its roll out of a portable digital music player, an apparent bid to capture a slice of the market now dominated by the iPod. The proposed device would play digital music and video files and carry wireless technology, enabling users to download music without linking to a computer, according to executives who spoke on condition of anonymity because plans for the player have not been made public. How would Microsoft's new device be used in conjunction with a wireless interest service provider? Wireless Internet service provider (WISP)– an ISP that allows subscribers to connect to a server at designated hotspots or access points using a wireless connection How can your college use a WISP to improve service? Which areas do you recommend the WISP be accessible? Just buildings? Outside? What are the additional security threats your college would need to be aware of if it implemented a WISP? The world's largest software maker, Microsoft, has been briefing record companies on its roll out of a portable digital music player, an apparent bid to capture a slice of the market now dominated by the iPod. The proposed device would play digital music and video files and carry wireless technology, enabling users to download music without linking to a computer, according to executives who spoke on condition of anonymity because plans for the player have not been made public. How would Microsoft's new device be used in conjunction with a wireless interest service provider?

29. OPENING CASE QUESTIONS Amazon How has Amazon used technology to revamp the bookselling industry? Is Amazon using disruptive or sustaining technology to run its business? How is Amazon using intranets and extranets to run its business? How could Amazon use kiosks to improve its business? OPENING CASE QUESTIONS Amazon.com – Not Your Average Bookstore 1. How has Amazon used technology to revamp the bookselling industry? Amazon is one of the largest book distributors in the world and one of the most innovative. Using personalization on its website, customers are offered suggestions for other titles. Jeff Bezos is using technology to predict what his customers want to buy next before they even know it. 2. Is Amazon using disruptive or sustaining technology to run its business? In the beginning Amazon was using disruptive technology to sell its books – the Internet. The Internet is no longer a disruptive technology, but Amazon is still finding ways to use it to disrupt the way it does business. 3. How is Amazon using intranets and extranets to run its business? Amazon uses intranets to help its employees perform their jobs, find corporate information, and communicate with each other more effectively. Amazon uses extranets to partner with third-party providers who are interested in selling products through Amazon’s website, such as zShops and the Amazon.com Marketplace. 4. How could Amazon use kiosks to improve its business? Amazon could place a kiosk outside physical bookstores allowing customers to check Amazon inventory to compare prices prior to making a purchase. Amazon could also place kiosks in airports allowing passengers to browse Amazon’s inventory while waiting for their flight.OPENING CASE QUESTIONS Amazon.com – Not Your Average Bookstore 1. How has Amazon used technology to revamp the bookselling industry? Amazon is one of the largest book distributors in the world and one of the most innovative. Using personalization on its website, customers are offered suggestions for other titles. Jeff Bezos is using technology to predict what his customers want to buy next before they even know it. 2. Is Amazon using disruptive or sustaining technology to run its business? In the beginning Amazon was using disruptive technology to sell its books – the Internet. The Internet is no longer a disruptive technology, but Amazon is still finding ways to use it to disrupt the way it does business. 3. How is Amazon using intranets and extranets to run its business? Amazon uses intranets to help its employees perform their jobs, find corporate information, and communicate with each other more effectively. Amazon uses extranets to partner with third-party providers who are interested in selling products through Amazon’s website, such as zShops and the Amazon.com Marketplace. 4. How could Amazon use kiosks to improve its business? Amazon could place a kiosk outside physical bookstores allowing customers to check Amazon inventory to compare prices prior to making a purchase. Amazon could also place kiosks in airports allowing passengers to browse Amazon’s inventory while waiting for their flight.

30. CLASSROOM OPENER GREAT BUSINESS DECISIONS – Jeff Bezos Decides to Sell Books over the Internet Jeff Bezos owns 41 percent of Amazon and is estimated to be worth over $900 million. Bezos graduated from Princeton and was the youngest Vice President at Banker’s Trust in New York. Bezos had to make a decision to stay and receive his 1994 Wall Street bonus or leave and start a business on the Internet. “I tried to imagine being eighty years old, looking back on my life. I knew that I would hardly regret having missed the 1994 Wall Street bonus. But having missed being part of the Internet boom – that would have really hurt,” stated Bezos. The first books ordered through Amazon were dispatched in the fall of 1994 (personally packaged by Bezos and his wife). Amazon.com is now the biggest bookstore on the planet. It is the exemplar of electronic business. CLASSROOM EXERCISE 25 Startups to Watch It's getting crowded on the web 2.0 frontier, but there are still some startups that truly stand out. Business 2.0 Magazine identifies the ones most likely to strike gold in 2007. http://money.cnn.com/galleries/2007/biz2/0702/gallery.nextnet.biz2/index.html   I like to discuss the funding for these start-ups. For example, the average funding for enterprise ebusiness start-ups were $33 million. It is a great way to show students how much money is being invested in ITCLASSROOM OPENER GREAT BUSINESS DECISIONS – Jeff Bezos Decides to Sell Books over the Internet Jeff Bezos owns 41 percent of Amazon and is estimated to be worth over $900 million. Bezos graduated from Princeton and was the youngest Vice President at Banker’s Trust in New York. Bezos had to make a decision to stay and receive his 1994 Wall Street bonus or leave and start a business on the Internet. “I tried to imagine being eighty years old, looking back on my life. I knew that I would hardly regret having missed the 1994 Wall Street bonus. But having missed being part of the Internet boom – that would have really hurt,” stated Bezos. The first books ordered through Amazon were dispatched in the fall of 1994 (personally packaged by Bezos and his wife). Amazon.com is now the biggest bookstore on the planet. It is the exemplar of electronic business. CLASSROOM EXERCISE 25 Startups to Watch It's getting crowded on the web 2.0 frontier, but there are still some startups that truly stand out. Business 2.0 Magazine identifies the ones most likely to strike gold in 2007. http://money.cnn.com/galleries/2007/biz2/0702/gallery.nextnet.biz2/index.html   I like to discuss the funding for these start-ups. For example, the average funding for enterprise ebusiness start-ups were $33 million. It is a great way to show students how much money is being invested in IT

31. LEARNING OUTCOMES Compare the four types of ebusiness models Describe how an organization’s marketing, sales, accounting, and customer service departments can use ebusiness to increase revenues or reduce costs Explain why an organization would use metrics to determine a website’s success 3.6. Compare the four types of ebusiness models. Business-to-business (B2B) Applies to businesses buying from and selling to each other over the Internet. Business-to-consumer (B2C) Applies to any business that sells its products or services to consumers over the Internet. Consumer-to-business (C2B) Applies to any consumer that sells a product or service to a business over the Internet. Consumer-to-consumer (C2C) Applies to sites primarily offering goods and services to assist consumers interacting with each other over the Internet. The primary difference between B2B and B2C are the customers; B2B customers are other businesses while B2C markets to consumers. Overall, B2B relations are more complex and have higher security needs; plus B2B is the dominant ebusiness force, representing 80 percent of all online business 3.7. Describe how an organization’s marketing, sales, accounting, and customer service departments can use ebusiness to increase revenues or reduce costs. Marketing and sales departments can use Internet marketing strategies such as online ads, associate programs, viral marketing, mass customization, personalization, blogs, and podcasting to increase the company’s visibility. These types of marketing techniques provide an easy way to penetrate a new geographic territory and extend global reach. Large, small, or specialized businesses can use their online sales sites to sell on a worldwide basis with little extra cost. Accounting departments can use ebusiness to help distribute information with greater convenience and richness than is currently available. They can also offer a variety of online payment methods such as financial cybermediaries, electronic checks, electronic bill presentment and payment, electronic data interchange, financial EDI, and digital wallets. Customer service departments can use ebusiness to enable customers to help themselves with the communications capability of a traditional customer response system available 24x7 over the Internet. 3.8. Explain why an organization would use metrics to determine a website’s success. Without metrics there is no way to determine if a website is successful. website metrics allow an organization to determine the efficiency and effectiveness of its site. Interactivity measures the visitors interactions with the target ad. Such interaction measures include the duration of time the visitor spends viewing the ad, the number of pages viewed, and even the number of repeat visits to the target ad. 3.6. Compare the four types of ebusiness models. Business-to-business (B2B) Applies to businesses buying from and selling to each other over the Internet. Business-to-consumer (B2C) Applies to any business that sells its products or services to consumers over the Internet. Consumer-to-business (C2B) Applies to any consumer that sells a product or service to a business over the Internet. Consumer-to-consumer (C2C) Applies to sites primarily offering goods and services to assist consumers interacting with each other over the Internet. The primary difference between B2B and B2C are the customers; B2B customers are other businesses while B2C markets to consumers. Overall, B2B relations are more complex and have higher security needs; plus B2B is the dominant ebusiness force, representing 80 percent of all online business 3.7. Describe how an organization’s marketing, sales, accounting, and customer service departments can use ebusiness to increase revenues or reduce costs. Marketing and sales departments can use Internet marketing strategies such as online ads, associate programs, viral marketing, mass customization, personalization, blogs, and podcasting to increase the company’s visibility. These types of marketing techniques provide an easy way to penetrate a new geographic territory and extend global reach. Large, small, or specialized businesses can use their online sales sites to sell on a worldwide basis with little extra cost. Accounting departments can use ebusiness to help distribute information with greater convenience and richness than is currently available. They can also offer a variety of online payment methods such as financial cybermediaries, electronic checks, electronic bill presentment and payment, electronic data interchange, financial EDI, and digital wallets. Customer service departments can use ebusiness to enable customers to help themselves with the communications capability of a traditional customer response system available 24x7 over the Internet. 3.8. Explain why an organization would use metrics to determine a website’s success. Without metrics there is no way to determine if a website is successful. website metrics allow an organization to determine the efficiency and effectiveness of its site. Interactivity measures the visitors interactions with the target ad. Such interaction measures include the duration of time the visitor spends viewing the ad, the number of pages viewed, and even the number of repeat visits to the target ad.

32. LEARNING OUTCOMES Describe ebusiness along with its benefits and challenges Define mcommerce and explain how an egovernment could use it to increase its efficiency and effectiveness 3.9. Describe ebusiness along with its benefits and challenges. ebusiness is the conducting of business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners. 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 3.10 Define mcommerce and explain how an egovernment could use it to increase its efficiency and effectiveness. Mobile commerce, or mcommerce, is the ability to purchase goods and services through a wireless Internet-enabled device. 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(s). egovernments could use mcommerce to facilitate the exchange of goods and services between the different branches of government and citizens. People could pay their taxes through an mcommerce device or receive a disability payment or social security payment to their mcommerce device making the process of receiving and distributing payments more efficient and effective for everyone.3.9. Describe ebusiness along with its benefits and challenges. ebusiness is the conducting of business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners. 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 3.10 Define mcommerce and explain how an egovernment could use it to increase its efficiency and effectiveness. Mobile commerce, or mcommerce, is the ability to purchase goods and services through a wireless Internet-enabled device. 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(s). egovernments could use mcommerce to facilitate the exchange of goods and services between the different branches of government and citizens. People could pay their taxes through an mcommerce device or receive a disability payment or social security payment to their mcommerce device making the process of receiving and distributing payments more efficient and effective for everyone.

33. EBUSINESS BASICS How do ecommerce and ebusiness differ? Ecommerce – the buying and selling of goods and services over the Internet Ebusiness – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners Ask your students to differentiate between ecommerce and ebusiness Ecommerce refers only to online transactions Ebusiness refers to online transactions, serving customers and collaborating with business partners On July 18,2005 media conglomerate News Corp. (NWS ) bought Intermix Media (MIX ), the company that owns MySpace and about 30 other sites, for $580 million in cash. Los Angeles-based Intermix owns 53% of MySpace and plans to buy the rest. It will become part of News Corp.'s new Fox Interactive Media unit, which was created on July 15, 2005 and also is based in L.A. Since MySpace is a social networking site, why would a business conglomerate such as News Corporation want to purchase it for $580 million?   CLASSROOM EXERCISE Jeff Bezos Video on Ebusiness Innovation The dot-com boom-and-bust is often compared to the 1849 Gold Rush, and Amazon.com founder Jeff Bezos offers historical evidence showing how similar they were: from the riches made by pioneers to the media hype that attracted luckless speculators. But a better analogy can be found in the early days of the electric industry, he shows us. His conclusion in 2003: "I believe there's more innovation ahead of us than behind us." http://www.ted.com/index.php/talks/view/id/105 Ask your students to differentiate between ecommerce and ebusiness Ecommerce refers only to online transactions Ebusiness refers to online transactions, serving customers and collaborating with business partners On July 18,2005 media conglomerate News Corp. (NWS ) bought Intermix Media (MIX ), the company that owns MySpace and about 30 other sites, for $580 million in cash. Los Angeles-based Intermix owns 53% of MySpace and plans to buy the rest. It will become part of News Corp.'s new Fox Interactive Media unit, which was created on July 15, 2005 and also is based in L.A. Since MySpace is a social networking site, why would a business conglomerate such as News Corporation want to purchase it for $580 million?   CLASSROOM EXERCISE Jeff Bezos Video on Ebusiness Innovation The dot-com boom-and-bust is often compared to the 1849 Gold Rush, and Amazon.com founder Jeff Bezos offers historical evidence showing how similar they were: from the riches made by pioneers to the media hype that attracted luckless speculators. But a better analogy can be found in the early days of the electric industry, he shows us. His conclusion in 2003: "I believe there's more innovation ahead of us than behind us."http://www.ted.com/index.php/talks/view/id/105

34. EBUSINESS BASICS Industries Using Ebusiness CLASSROOM EXERCISE ebusiness Business Ask your students to list the types of companies they want to work for when they graduate List the companies on the board and categorize them by industry Assign each industry to a group, or assign the industry to each individual depending on the company they want to work for, and have the students research how the different industries are using ebusiness Manufacturing and Retail: RFID, online payments and orders, sales via the Internet, customer service via the Internet Financial: online banking, online mortgages, online loans Telecommunications: Voice over the Internet (VoIP) Healthcare: digital hospitals, pharmacy orders via the Internet Travel: online reservations, Travelocity, Expedia CLASSROOM EXERCISE ebusiness Business Ask your students to list the types of companies they want to work for when they graduate List the companies on the board and categorize them by industry Assign each industry to a group, or assign the industry to each individual depending on the company they want to work for, and have the students research how the different industries are using ebusiness Manufacturing and Retail: RFID, online payments and orders, sales via the Internet, customer service via the Internet Financial: online banking, online mortgages, online loans Telecommunications: Voice over the Internet (VoIP) Healthcare: digital hospitals, pharmacy orders via the Internet Travel: online reservations, Travelocity, Expedia

35. EBUSINESS MODELS Ebusiness model – an approach to conducting electronic business on the Internet Can a business operate with more than one ebusiness model? Yes, eBay and Amazon are prime examples. eBay and Amazon’s ebusiness models change depending on who is posting the goods for sale and who is buying the goods for sale? Can a business operate with more than one ebusiness model? Yes, eBay and Amazon are prime examples. eBay and Amazon’s ebusiness models change depending on who is posting the goods for sale and who is buying the goods for sale?

36. EBUSINESS MODELS This is a new service by Google that allows customers to checkout - Google ebusiness http://checkout.google.com/seller/demo.html This is a new service by Google that allows customers to checkout - Google ebusiness http://checkout.google.com/seller/demo.html

37. EBUSINESS MODELS Can you define a business the operates in each segment? B2B: Electronic marketplace, Google search marketing B2C: Progressive insurance, Carfax, Best Buy, Amazon C2B: eBay, Amazon C2C: eBay, Amazon Can you define a business the operates in each segment? B2B: Electronic marketplace, Google search marketing B2C: Progressive insurance, Carfax, Best Buy, Amazon C2B: eBay, Amazon C2C: eBay, Amazon

38. Business-to-Business (B2B) Electronic marketplace (emarketplace) – interactive business communities providing a central market where multiple buyers and sellers can engage in ebusiness activities Electronic marketplaces, or emarketplaces, present structures for conducting commercial exchange, consolidating supply chains, and creating new sales channels Their primary goal is to increase market efficiency by tightening and automating the relationship between buyers and sellers Existing emarketplaces allow access to various mechanisms in which to buy and sell almost anything, from services to direct materialsElectronic marketplaces, or emarketplaces, present structures for conducting commercial exchange, consolidating supply chains, and creating new sales channels Their primary goal is to increase market efficiency by tightening and automating the relationship between buyers and sellers Existing emarketplaces allow access to various mechanisms in which to buy and sell almost anything, from services to direct materials

39. Business-to-Consumer (B2C) Common B2C ebusiness models include: Eshop – a version of a retail Emall – consists of a number of eshops Business types include: Brick-and-mortar business Pure-play business Click-and-mortar business Business Types: Brick-and-mortar business - operates in a physical store without an Internet presence. Pure-play (virtual) business - a business that operates on the Internet only without a physical store. Examples include Amazon.com and Expedia.com. Click-and-mortar business – a business that operates in a physical store and on the Internet. Examples include REI and Barnes and Noble. Can you name a company that operates in each of the different business types? Brick-and-mortar business – local book store, college book store (there are not many today) Pure-play business – Amazon.com, eBay Click-and-mortar business – Barnes and Noble Business Types: Brick-and-mortar business - operates in a physical store without an Internet presence. Pure-play (virtual) business - a business that operates on the Internet only without a physical store. Examples include Amazon.com and Expedia.com. Click-and-mortar business – a business that operates in a physical store and on the Internet. Examples include REI and Barnes and Noble. Can you name a company that operates in each of the different business types? Brick-and-mortar business – local book store, college book store (there are not many today) Pure-play business – Amazon.com, eBay Click-and-mortar business – Barnes and Noble

40. Consumer-to-Business (C2B) Priceline.com is an example of a C2B ebusiness model The demand for C2B ebusiness will increase over the next few years due to customer’s desire for greater convenience and lower prices CLASSROOM EXERCISE Trip to a trip Have your students create a trip itinerary for a 7 day trip to Paris with a nice hotel and rental car on Priceline.com and Expeida.com Which site did they like best? Which site had the best website? Which site will they continue to use?CLASSROOM EXERCISE Trip to a trip Have your students create a trip itinerary for a 7 day trip to Paris with a nice hotel and rental car on Priceline.com and Expeida.com Which site did they like best? Which site had the best website? Which site will they continue to use?

41. Consumer-to-Consumer (C2C) Online auctions Electronic auction (eauction) - sellers and buyers solicit bids and prices are determined dynamically Forward auction - a selling channel to many buyers and the highest bid wins Reverse auction - buyers use to purchase a product or service, selecting the seller with the lowest bid eBay is the Internet’s most successful C2C site and is now ranked in the top 15 retailers in the United States Which products or services would they want to purchase using an online auction? Which type of auction would they use? Car Boat Vacation Bicycle Coat DVDs Pet grooming service Dog walking service Wedding catering eBay is the Internet’s most successful C2C site and is now ranked in the top 15 retailers in the United States Which products or services would they want to purchase using an online auction? Which type of auction would they use? Car Boat Vacation Bicycle Coat DVDs Pet grooming service Dog walking service Wedding catering

42. Consumer-to-Consumer (C2C) C2C Communities Communities of interest - People interact with each other on specific topics, such as golfing and stamp collecting Communities of relations - People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts Communities of fantasy - People participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan If you could start a new ebusiness, which community would you address to ensure a successful launch? How would you address the community?If you could start a new ebusiness, which community would you address to ensure a successful launch? How would you address the community?

43. ORGANIZATIONAL STRATEGIES FOR EBUSINESS Primary business areas taking advantage of ebusiness include: Marketing/sales Financial services Procurement Customer service Intermediaries CLASSROOM EXERCISE “The Competitive Nature of Websites” Have students team up with two or three classmates to select and compare websites of two retailers that are in the same business (as an example jcrew.com vs. abercrombie.com, or Amazon.com vs. bn.com). Have students use the list of "do's and don'ts" from http://www.efuse.com/Design/top_10_do_s_and_don_ts.html to compare the two sites, along with other criteria you might like to add. Have students review the range of information resources and services used in the sites and the ways in which they are organized, de­signed, and presented. The basic question the groups should attempt to an­swer is how well the sites support the conduct of ebusiness. After analyzing the sites, have students compare the strengths and weak­nesses of the two sites. Students should be able to draw a conclusion as to which one they think does the best job of attracting customers to the website and retaining them once they get there. Also, have students comment on how well they think each site… Offers a fast and convenient shopping experience Provides access to help or additional information Selects desirable products and displays them and describes them in an attractive and easy-to­ understand manner Describes its method for getting purchases to customers promptly Uses online ads, affiliate programs, viral marketing, and email marketingCLASSROOM EXERCISE “The Competitive Nature of Websites” Have students team up with two or three classmates to select and compare websites of two retailers that are in the same business (as an example jcrew.com vs. abercrombie.com, or Amazon.com vs. bn.com). Have students use the list of "do's and don'ts" from http://www.efuse.com/Design/top_10_do_s_and_don_ts.html to compare the two sites, along with other criteria you might like to add. Have students review the range of information resources and services used in the sites and the ways in which they are organized, de­signed, and presented. The basic question the groups should attempt to an­swer is how well the sites support the conduct of ebusiness. After analyzing the sites, have students compare the strengths and weak­nesses of the two sites. Students should be able to draw a conclusion as to which one they think does the best job of attracting customers to the website and retaining them once they get there. Also, have students comment on how well they think each site… Offers a fast and convenient shopping experience Provides access to help or additional information Selects desirable products and displays them and describes them in an attractive and easy-to­ understand manner Describes its method for getting purchases to customers promptly Uses online ads, affiliate programs, viral marketing, and email marketing

44. 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 program (affiliate program) - businesses generate commissions or royalties Viral marketing - a technique that induces websites or users to pass on a marketing message Mass customization - gives customers the opportunity to tailor products or services CLASSROOM EXERCISE Viral Marketing Video Clip From Spam to Viral Marketing from John Cleese One B2B marketer used a lot of silliness to increase its web traffic tenfold and generate thousands of sales leads starting a viral phenomenon which went from a wacky idea to revenue-generating success. Great John Cleese video on the backup trauma institute. I like to use this video when introducing IT Architectures. This is also one of the first examples of a successful viral marketing campaign. http://www.backuptrauma.com/video/default2.aspx An online ad (often called banner ad) is a box running across a web page that is often used to contain advertisements. The banner generally contains a link to the advertiser’s website. Web-based advertising services can track the number of times users click the banner, generating statistics that enable advertisers to judge whether the advertising fees are worth paying. Banner ads are like living, breathing classified ads. A pop-up ad is a small web page containing an advertisement that appears on the web page outside of the current website loaded in the web browser. A pop-under ad is a form of a pop-up ad that users do not see until they close the current web browser screen. Associate programs (affiliate programs) allow businesses to generate commissions or royalties from an Internet site. For example, a business can sign up as an associate of a major commercial site such as Amazon. The business then sends potential buyers to the Amazon site using a code or banner ad. The business receives a commission when the referred customer makes a purchase on Amazon. Viral marketing is a technique that induces websites or users to pass on a marketing message to other websites or users, creating exponential growth in the message’s visibility and effect. One example of successful viral marketing is Hotmail, which promotes its service and its own advertisers’ messages in every user’s email notes. Viral marketing encourages users of a product or service supplied by an ebusiness to encourage friends to join. Viral marketing is a word-of-mouth type advertising program. Mass customization is the ability of an organization to give its customers the opportunity to tailor its products or services to the customers’ specifications. For example, customers can order M&M’s with customized sayings such as “Marry Me.”  CLASSROOM EXERCISE Viral Marketing Video Clip From Spam to Viral Marketing from John Cleese One B2B marketer used a lot of silliness to increase its web traffic tenfold and generate thousands of sales leads starting a viral phenomenon which went from a wacky idea to revenue-generating success. Great John Cleese video on the backup trauma institute. I like to use this video when introducing IT Architectures. This is also one of the first examples of a successful viral marketing campaign. http://www.backuptrauma.com/video/default2.aspx An online ad (often called banner ad) is a box running across a web page that is often used to contain advertisements. The banner generally contains a link to the advertiser’s website. Web-based advertising services can track the number of times users click the banner, generating statistics that enable advertisers to judge whether the advertising fees are worth paying. Banner ads are like living, breathing classified ads. A pop-up ad is a small web page containing an advertisement that appears on the web page outside of the current website loaded in the web browser. A pop-under ad is a form of a pop-up ad that users do not see until they close the current web browser screen. Associate programs (affiliate programs) allow businesses to generate commissions or royalties from an Internet site. For example, a business can sign up as an associate of a major commercial site such as Amazon. The business then sends potential buyers to the Amazon site using a code or banner ad. The business receives a commission when the referred customer makes a purchase on Amazon. Viral marketing is a technique that induces websites or users to pass on a marketing message to other websites or users, creating exponential growth in the message’s visibility and effect. One example of successful viral marketing is Hotmail, which promotes its service and its own advertisers’ messages in every user’s email notes. Viral marketing encourages users of a product or service supplied by an ebusiness to encourage friends to join. Viral marketing is a word-of-mouth type advertising program. Mass customization is the ability of an organization to give its customers the opportunity to tailor its products or services to the customers’ specifications. For example, customers can order M&M’s with customized sayings such as “Marry Me.”  

45. Marketing/Sales Generating revenue on the Internet (cont.) Personalization - occurs when a website can fashion offers that are more likely to appeal to that person Blog - website 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 CLASSROOM EXERCISE Video Clip: Personalization I use this clip for the beginning of my mass-customization and personalization lecture. http://www.youtube.com/watch?v=vAdjn1_pppY Personalization occurs when a website can know enough about a person’s likes and dislikes that it can fashion offers that are more likely to appeal to that person. Personalization involves tailoring a presentation of an ebusiness website to individuals or groups of customers based on profile information, demographics, or prior transactions. Amazon uses personalization to create a unique portal for each of its customers. A blog (the contraction of the phrase “Web log”) is a website in which items are posted on a regular basis and displayed in reverse chronological order. Like other media, blogs often focus on a particular subject, such as food, politics, or local news. Some blogs function as online diaries. A typical blog combines text, images, and links to other blogs, Web pages, and other media related to its topic. Since its appearance in 1995, blogging has emerged as a popular means of communication, affecting public opinion and mass media around the world. Real simple syndications (RSS) is a family of Web feed formats used for Web syndication of programs and content. RSS is used by (among other things) news websites, blogs, and podcasting, which allows consumers and journalists to have news constantly fed to them instead of searching for it. In addition to facilitating syndication, RSS allows a website’s frequent readers to track updates on the site. Podcasting is the distribution of audio or video files, such as radio programs or music videos, over the Internet to play on mobile devices and personal computers. Podcasting’s essence is about creating content (audio or video) for an audience that wants to listen when they want, where they want, and how they want. Podcasters’ websites also may offer direct download of their files, but the subscription feed of automatically delivered new content is what distinguishes a podcast from a simple download or real-time streaming. Usually, the podcast features one type of show with new episodes either sporadically or at planned intervals such as daily, weekly, etc. CLASSROOM EXERCISE Video Clip: Personalization I use this clip for the beginning of my mass-customization and personalization lecture. http://www.youtube.com/watch?v=vAdjn1_pppY Personalization occurs when a website can know enough about a person’s likes and dislikes that it can fashion offers that are more likely to appeal to that person. Personalization involves tailoring a presentation of an ebusiness website to individuals or groups of customers based on profile information, demographics, or prior transactions. Amazon uses personalization to create a unique portal for each of its customers. A blog (the contraction of the phrase “Web log”) is a website in which items are posted on a regular basis and displayed in reverse chronological order. Like other media, blogs often focus on a particular subject, such as food, politics, or local news. Some blogs function as online diaries. A typical blog combines text, images, and links to other blogs, Web pages, and other media related to its topic. Since its appearance in 1995, blogging has emerged as a popular means of communication, affecting public opinion and mass media around the world. Real simple syndications (RSS) is a family of Web feed formats used for Web syndication of programs and content. RSS is used by (among other things) news websites, blogs, and podcasting, which allows consumers and journalists to have news constantly fed to them instead of searching for it. In addition to facilitating syndication, RSS allows a website’s frequent readers to track updates on the site. Podcasting is the distribution of audio or video files, such as radio programs or music videos, over the Internet to play on mobile devices and personal computers. Podcasting’s essence is about creating content (audio or video) for an audience that wants to listen when they want, where they want, and how they want. Podcasters’ websites also may offer direct download of their files, but the subscription feed of automatically delivered new content is what distinguishes a podcast from a simple download or real-time streaming. Usually, the podcast features one type of show with new episodes either sporadically or at planned intervals such as daily, weekly, etc.

46. Marketing/Sales Generating revenue on the Internet (cont.) Search engine optimization (SEO) - a set of methods aimed at improving the ranking of a website 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 CLASSROOM EXERCISE Click Fraud Give your students the following articles: In Challenge To Google, Microsoft Pays $6 Billion For Online Advertising Firm Microsoft is trying to grab a larger piece of the online advertising market, which represents a $40 billion opportunity that will grow 20% per year until 2010. http://www.informationweek.com/news/showArticle.jhtml?articleID=199601932 Fair Isaac Claims Pay-Per-Click Fraud Is 10% To 15%. Google disputes the figures and has consistently taken issue with the methodology and motives of those reporting significant levels of click fraud. http://www.informationweek.com/news/showArticle.jhtml?articleID=199601726   Ask your students the following additional questions: What do you think about paying $6 billion for an Online Advertising Firm and why should Microsoft be worried about Click Fraud (especially with the number of people who dislike Microsoft)? Search engine optimization (SEO) is a set of methods aimed at improving the ranking of a website in search engine listings. Search engines display different kinds of listings in the search engine results pages (SERPs), including: pay-per-click advertisements, paid inclusion listings, and organic search results. SEO is primarily concerned with advancing the goals of websites by improving the number and position of organic search results for a wide variety of relevant keywords. SEO strategies can increase the number of visitors and the quality of visitors, where quality means visitors who complete the action the site intends (e.g., purchase, sign up, learn something). SEO, or “white hat SEO,” is distinguished from “black hat SEO,” or spamdexing by methods and objectives. 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. What constitutes an honest, or ethical, method is an issue that has been the subject of numerous debates. CLASSROOM EXERCISE Click Fraud Give your students the following articles: In Challenge To Google, Microsoft Pays $6 Billion For Online Advertising Firm Microsoft is trying to grab a larger piece of the online advertising market, which represents a $40 billion opportunity that will grow 20% per year until 2010. http://www.informationweek.com/news/showArticle.jhtml?articleID=199601932 Fair Isaac Claims Pay-Per-Click Fraud Is 10% To 15%. Google disputes the figures and has consistently taken issue with the methodology and motives of those reporting significant levels of click fraud. http://www.informationweek.com/news/showArticle.jhtml?articleID=199601726   Ask your students the following additional questions: What do you think about paying $6 billion for an Online Advertising Firm and why should Microsoft be worried about Click Fraud (especially with the number of people who dislike Microsoft)? Search engine optimization (SEO) is a set of methods aimed at improving the ranking of a website in search engine listings. Search engines display different kinds of listings in the search engine results pages (SERPs), including: pay-per-click advertisements, paid inclusion listings, and organic search results. SEO is primarily concerned with advancing the goals of websites by improving the number and position of organic search results for a wide variety of relevant keywords. SEO strategies can increase the number of visitors and the quality of visitors, where quality means visitors who complete the action the site intends (e.g., purchase, sign up, learn something). SEO, or “white hat SEO,” is distinguished from “black hat SEO,” or spamdexing by methods and objectives. 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. What constitutes an honest, or ethical, method is an issue that has been the subject of numerous debates.

47. Financial Services Online consumer payments include: Financial cybermediary Electronic check Electronic bill presentment and payment (EBPP) Digital wallet Online Consumer Payments Financial cybermediary - an Internet-based company that facilitates cybermediary payments over the Internet. PayPal is the best-known example of a financial cybermediary. Electronic check - a mechanism for sending a payment from a checking or savings account. There are many implementations of electronic checks, with the most prominent being online banking. Electronic bill presentment and payment (EBPP) - a system that sends presentment and bills over the Internet and provides an easy-to-use mechanism (such as payment (EBPP) clicking on a button) to pay the bill. EBPP systems are available through local banks or online services such as Checkfree and Quicken. Digital wallet - both software and information—the software provides security for the transaction and the information includes payment and delivery information (for example, the credit card number and expiration date). There is currently a move towards converging and consolidating Finance provisions into shared services within an organization. Rather than an organization having a number of separate Finance departments performing the same tasks from different locations a more centralized version can be created. Information systems will greatly help the achievement of this goal. As a consumer, which type of payment do you use the most on the Internet? What will be the driving force that changes online consumer payments in the future? Security Ease of use Common formatsOnline Consumer Payments Financial cybermediary - an Internet-based company that facilitates cybermediary payments over the Internet. PayPal is the best-known example of a financial cybermediary. Electronic check - a mechanism for sending a payment from a checking or savings account. There are many implementations of electronic checks, with the most prominent being online banking. Electronic bill presentment and payment (EBPP) - a system that sends presentment and bills over the Internet and provides an easy-to-use mechanism (such as payment (EBPP) clicking on a button) to pay the bill. EBPP systems are available through local banks or online services such as Checkfree and Quicken. Digital wallet - both software and information—the software provides security for the transaction and the information includes payment and delivery information (for example, the credit card number and expiration date). There is currently a move towards converging and consolidating Finance provisions into shared services within an organization. Rather than an organization having a number of separate Finance departments performing the same tasks from different locations a more centralized version can be created. Information systems will greatly help the achievement of this goal. As a consumer, which type of payment do you use the most on the Internet? What will be the driving force that changes online consumer payments in the future? Security Ease of use Common formats

48. Financial Services Online business payments include: Electronic data interchange (EDI) Value-added network (VAN) Financial EDI (financial electronic data interchange) Online Business Payments Electronic data interchange (EDI) - a standard format for exchanging business data. One way an organization can use EDI is through a value-added network. Value-added network (VAN) - a private network, provided by a third party, for exchanging information through a high-capacity connection. VANs support electronic catalogs (from which orders are placed), EDI-based transactions (the actual orders), security measures such as encryption, and EDI mailboxes. Financial EDI (financial electronic data interchange) is a standard electronic process for B2B market purchase payments. National Cash Management System is an automated clearinghouse that supports the reconciliation of the payments. Why do businesses use different forms of online payments than consumers? Business payments are typically much larger than consumer payments and need additional security With supply chain management systems online business payments are automated using EDIOnline Business Payments Electronic data interchange (EDI) - a standard format for exchanging business data. One way an organization can use EDI is through a value-added network. Value-added network (VAN) - a private network, provided by a third party, for exchanging information through a high-capacity connection. VANs support electronic catalogs (from which orders are placed), EDI-based transactions (the actual orders), security measures such as encryption, and EDI mailboxes. Financial EDI (financial electronic data interchange) is a standard electronic process for B2B market purchase payments. National Cash Management System is an automated clearinghouse that supports the reconciliation of the payments. Why do businesses use different forms of online payments than consumers? Business payments are typically much larger than consumer payments and need additional security With supply chain management systems online business payments are automated using EDI

49. Financial Services Electronic trading network What do you think are the competitive services offered by Electronic Trading Networks? A recent report has concluded that the providers of Electronic Trading Networks (ETN) are most competitive over, and often share different opinions on, three areas of ETN services: Speed of implementation Services provided, including overall service and integration management Product applicability to small and medium-size enterprisesWhat do you think are the competitive services offered by Electronic Trading Networks? A recent report has concluded that the providers of Electronic Trading Networks (ETN) are most competitive over, and often share different opinions on, three areas of ETN services: Speed of implementation Services provided, including overall service and integration management Product applicability to small and medium-size enterprises

50. Procurement 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 Web-based procurement of maintenance, repair, and operations (MRO) supplies is expected to reach more than $200 billion worldwide by the year 2009 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. Typical MRO goods include office supplies (such as pens and paper), equipment, furniture, computers, and replacement parts. Name a few types of MRO goods? Office supplies Equipment Furniture ComputersWeb-based procurement of maintenance, repair, and operations (MRO) supplies is expected to reach more than $200 billion worldwide by the year 2009 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. Typical MRO goods include office supplies (such as pens and paper), equipment, furniture, computers, and replacement parts. Name a few types of MRO goods? Office supplies Equipment Furniture Computers

51. 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 What benefits can an organization receive from online customer service? Availability 24x7 to help customers Detailed customer service information can cut down on phone calls to the company More convenient for the customer How often do you use online customer service? How can your college use online customer service to help students?What benefits can an organization receive from online customer service? Availability 24x7 to help customers Detailed customer service information can cut down on phone calls to the company More convenient for the customer How often do you use online customer service? How can your college use online customer service to help students?

52. Consumer Protection Issues for consumer protection Unsolicited goods and communications Illegal or harmful goods, services, and content Insufficient information about goods Invasion of privacy Cyberfraud and cybercrime Identity theft is already so common that there are entire units within law enforcement that deal with this issue every day There are toll-free numbers, websites and documents that clearly define incident response procedures CLASSROOM EXERCISE Protecting Customers Identity theft is rising and there are great examples on the Internet Ask your students to compile a listing of identity theft and phising scams by researching the Internet to find examples Discuss all of the examples to help spread awareness to your students What can a company do to help prevent identity theft and phising scams? Identity theft is already so common that there are entire units within law enforcement that deal with this issue every day There are toll-free numbers, websites and documents that clearly define incident response procedures CLASSROOM EXERCISE Protecting Customers Identity theft is rising and there are great examples on the Internet Ask your students to compile a listing of identity theft and phising scams by researching the Internet to find examples Discuss all of the examples to help spread awareness to your students What can a company do to help prevent identity theft and phising scams?

53. Consumer Protection Ebusiness security Encryption Secure socket layer (SSL) Secure electronic transaction (SET) Which type of ebusiness security would you recommend a business implement? Why? Ebusiness Security Encryption - scrambles information into an alternative form that requires a key or password to decrypt. Encryption is achieved by scrambling letters, replacing letters, replacing letters with numbers, and other ways. Secure socket layer (SSL) - (1) creates a secure and private connection between a client and server computer, (2) encrypts the information, and (3) sends the information over the Internet. SSL is identified by a website address that includes an “s” at the end—https. Secure electronic transaction (SET) - a transmission security method that ensures transactions are secure and legitimate. Similar to SSL, SET encrypts information before sending it over the Internet. However, SET also enables customer authentication for credit card transaction. SETs are endorsed by major ecommerce players including MasterCard, American Express, Visa, Netscape, and Microsoft. Which type of ebusiness security would you recommend a business implement? Why? Ebusiness Security Encryption - scrambles information into an alternative form that requires a key or password to decrypt. Encryption is achieved by scrambling letters, replacing letters, replacing letters with numbers, and other ways. Secure socket layer (SSL) - (1) creates a secure and private connection between a client and server computer, (2) encrypts the information, and (3) sends the information over the Internet. SSL is identified by a website address that includes an “s” at the end—https. Secure electronic transaction (SET) - a transmission security method that ensures transactions are secure and legitimate. Similar to SSL, SET encrypts information before sending it over the Internet. However, SET also enables customer authentication for credit card transaction. SETs are endorsed by major ecommerce players including MasterCard, American Express, Visa, Netscape, and Microsoft.

54. 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 Discuss the Figure from the text which highlights the different types of intermediaries Explain the relationship between intermediaries and reintermediation Reintermediation occurred because of intermediaries Discuss the Figure from the text which highlights the different types of intermediaries Explain the relationship between intermediaries and reintermediation Reintermediation occurred because of intermediaries

55. MEASURING EBUSINESS SUCCESS Most companies measure the traffic on a website as the primary determinant of the website’s success However, a large amount of website traffic does not necessarily equate to large sales Many organizations with high website traffic have low sales volumes An organization must measure more than just traffic to determine the efficiency and effectiveness of its websites Ask your students what types of things an organization can monitor to determine the efficiency and effectiveness of its websites Ans: Revenue generated by Web traffic Number of new customers acquired by Web traffic Reductions in customer service calls resulting from Web traffic The Yankee Group reports that 66 percent of companies determine website success solely by measuring the amount of traffic New customer acquisition ranked second Revenue generation ranked thirdAn organization must measure more than just traffic to determine the efficiency and effectiveness of its websites Ask your students what types of things an organization can monitor to determine the efficiency and effectiveness of its websites Ans: Revenue generated by Web traffic Number of new customers acquired by Web traffic Reductions in customer service calls resulting from Web traffic The Yankee Group reports that 66 percent of companies determine website success solely by measuring the amount of traffic New customer acquisition ranked second Revenue generation ranked third

56. MEASURING EBUSINESS SUCCESS Website traffic analysis can include: Cookie Click-through Banner ad Interactivity website traffic analysis can include: Cookie – a small file deposited on a hard drive by a website containing information about customers and their Web activities Click-through – a count of the number of people who visit one site and click on an advertisement that takes them to the site of the advertiser Banner ad – a small ad on one website that advertises the products and services of another business, usually another dot-com business Interactivity – visitor interactions with the target ad Analyzing website traffic is one way organizations can understand the effectiveness of Web advertising Ask your students how interactivity is a giant advancement in the advertising industry Ans: Prior to computers there was no way for the advertiser to know if the customer actually read or even looked at an ad in a newspaper or magazine Interactivity measures allow advertisers to know exactly how long a customer spends viewing an ad Ask your students about privacy and how do these types of Web traffic analysis tools invade user privacywebsite traffic analysis can include: Cookie – a small file deposited on a hard drive by a website containing information about customers and their Web activities Click-through – a count of the number of people who visit one site and click on an advertisement that takes them to the site of the advertiser Banner ad – a small ad on one website that advertises the products and services of another business, usually another dot-com business Interactivity – visitor interactions with the target ad Analyzing website traffic is one way organizations can understand the effectiveness of Web advertising Ask your students how interactivity is a giant advancement in the advertising industry Ans: Prior to computers there was no way for the advertiser to know if the customer actually read or even looked at an ad in a newspaper or magazine Interactivity measures allow advertisers to know exactly how long a customer spends viewing an ad Ask your students about privacy and how do these types of Web traffic analysis tools invade user privacy

57. Website Metrics Clickstream data tracks the exact pattern of a consumer’s navigation through a website Clickstream data can reveal: Number of pageviews Pattern of websites visited Length of stay on a website Date and time visited Number of customers with shopping carts Number of abandoned shopping carts Click-stream data can reveal a number of basic data points on how consumers interact with websites Ask your students what an organization can learn from understanding click-stream data For example, what does number of abandoned shopping carts tell an organization?Click-stream data can reveal a number of basic data points on how consumers interact with websites Ask your students what an organization can learn from understanding click-stream data For example, what does number of abandoned shopping carts tell an organization?

58. Website Metrics Website metrics include: Visitor metrics Exposure metrics Visit metrics Hit metrics Review each section of the website metrics Figure for a detailed listing of visitor, exposure, visit, and hit metrics CLASSROOM EXERCISE Measuring Metrics Break your students into groups and assign each group one of the four categories found in the above Figure Have your students detail each category explaining how each metric can be used to help an organization improve its operations Ask your students to share their answers with the classReview each section of the website metrics Figure for a detailed listing of visitor, exposure, visit, and hit metrics CLASSROOM EXERCISE Measuring Metrics Break your students into groups and assign each group one of the four categories found in the above Figure Have your students detail each category explaining how each metric can be used to help an organization improve its operations Ask your students to share their answers with the class

59. EBUSINESS BENEFITS AND CHALLENGES Ebusiness benefits include: Highly accessible Increased customer loyalty Improved information content Increased convenience Increased global reach Decreased cost ebusiness benefits include: Highly Accessible - Businesses can operate 24 hours a day, 7 days a week, 365 days a year Increased Customer Loyalty - Additional channels to contact, respond to, and access customers helps contribute to customer loyalty Improved Information Content- In the past, customers had to order catalogs or travel to a physical facility before they could compare price and product attributes. Electronic catalogs and Web pages present customers with updated information in real-time about goods, services, and prices Increased Convenience - ebusiness automates and improves many of the activities that make up a buying experience Increased Global Reach - Businesses, both small and large, can reach new markets Decreased Cost - The cost of conducting business on the Internet is substantially smaller than traditional forms of business communication Which benefit would you pick if asked to identify the most important ebusiness benefit? Would it change depending on the industry? Would it change depending on the company? Would it change depending on the customer? ebusiness benefits include: Highly Accessible - Businesses can operate 24 hours a day, 7 days a week, 365 days a year Increased Customer Loyalty - Additional channels to contact, respond to, and access customers helps contribute to customer loyalty Improved Information Content- In the past, customers had to order catalogs or travel to a physical facility before they could compare price and product attributes. Electronic catalogs and Web pages present customers with updated information in real-time about goods, services, and prices Increased Convenience - ebusiness automates and improves many of the activities that make up a buying experience Increased Global Reach - Businesses, both small and large, can reach new markets Decreased Cost - The cost of conducting business on the Internet is substantially smaller than traditional forms of business communication Which benefit would you pick if asked to identify the most important ebusiness benefit? Would it change depending on the industry? Would it change depending on the company? Would it change depending on the customer?

60. EBUSINESS BENEFITS AND CHALLENGES Ebusiness challenges include: Protecting consumers Leveraging existing systems Increasing liability Providing security Adhering to taxation rules Review the figure for a full listing of ebusiness challenges Which challenge would you pick if asked to identify the most difficult ebusiness challenge? Would it change depending on the industry? Would it change depending on the company? Would it change depending on the customer?Review the figure for a full listing of ebusiness challenges Which challenge would you pick if asked to identify the most difficult ebusiness challenge? Would it change depending on the industry? Would it change depending on the company? Would it change depending on the customer?

61. 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 Review the benefits and challenges Figure for a detailed listing of the various advantages and limitations in the ebusiness revenue model Which type of revenue model would an ASP find most lucrative? Which type of revenue model would an ISP find most lucrative? Which type of revenue model would an online auction website find most lucrative? Which type of revenue model would an online search engine such as Google find most lucrative? Review the benefits and challenges Figure for a detailed listing of the various advantages and limitations in the ebusiness revenue model Which type of revenue model would an ASP find most lucrative? Which type of revenue model would an ISP find most lucrative? Which type of revenue model would an online auction website find most lucrative? Which type of revenue model would an online search engine such as Google find most lucrative?

62. 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 The chapter discussed many ways that businesses are growing and increasing profits through ebusiness How can egovernment use some of the trends discussed throughout the chapter to help reduce costs and increase revenue?The chapter discussed many ways that businesses are growing and increasing profits through ebusiness How can egovernment use some of the trends discussed throughout the chapter to help reduce costs and increase revenue?

63. NEW TRENDS IN EBUSINESS: EGOVERNMENT AND MCOMMERCE Review the website http://firstgov.gov/ - the official U.S. gateway to all government information This website is a catalyst for a growing electronic government Ask your students to review the following websites to further understand the progress being made in egovernment C2G – eGov.com B2G – lockheedmartin.com G2B – export.gov G2C – medicare.gov G2G – disasterhelp.gov Review the website http://firstgov.gov/ - the official U.S. gateway to all government information This website is a catalyst for a growing electronic government Ask your students to review the following websites to further understand the progress being made in egovernment C2G – eGov.com B2G – lockheedmartin.com G2B – export.gov G2C – medicare.gov G2G – disasterhelp.gov

64. NEW TRENDS IN EBUSINESS: EGOVERNMENT AND MCOMMERCE Mobile commerce - the ability to purchase goods and services through a wireless Internet-enabled device CLASSROOM EXERCISE Mobile Mania Ask your students to develop a product or service that could be used in the mcommerce market A device to download music and videos through wireless Purchase goods and services through a cell phone CLASSROOM EXERCISE Mobile Mania Ask your students to develop a product or service that could be used in the mcommerce market A device to download music and videos through wireless Purchase goods and services through a cell phone

65. OPENING CASE QUESTIONS Amazon What is Amazon’s ebusiness model? How can Amazon use mcommerce to influence its business? Which metrics could Amazon use to assess the efficiency and effectiveness of Amazon’s website? What are some of the business challenges facing Amazon? 5. What is Amazon’s ebusiness model? This is somewhat of a trick question, because the answer is that Amazon.com is a B2B, C2C, and a B2C. Amazon.com does business with other businesses (B2B), such as Borders, Target, and Office Depot. Amazon.com also supports a huge business-to-consumer model with their main website interface. Amazon also supports customers doing business with other customers (C2C). 6. How can Amazon use mcommerce to influence its business? mcommerce enables consumers to buy on the fly, from handheld devices and mobile phones. Using Amazon.com’s one-click, customers could search for and buy any of Amazon's offerings, from DVDs and CDs to books and toys, and do it anywhere. Which means customers would have the use of shopping in a traditional brick-and-mortar store, use comparative shopping methods, search Amazon.com for its price, and make a purchasing decision accordingly. 7. Which metrics could Amazon use to assess the efficiency and effectiveness of Amazon’s website? Amazon could use the following metrics to asses its website. Click-through – to determine how many customers visit the site from another site, banner-ad – to determine how many customers visit the site from a banner ad on another site, the number of page views to determine the number of pages presented to a visitor, the pattern of websites visited, including most frequent exit page and most frequent prior website, length of stay on the website, dates and times of visits to determine customer spending habits, number of abandoned shopping carts to determine why customers are leaving the site, identified visitors who purchase recommended products to determine if personalization is working 8. What are some of the business challenges facing Amazon? There are several challenges facing Amazon including protecting its customers from unsolicited goods and illegal or harmful communication. Amazon offers a number of third-party services and it must ensure those parties are operating as expected. If a customer purchases a product from a third-party seller on Amazon and the goods are never shipped, Amazon is held responsible. It must also deal with security issues such as identity theft if there was a breach in its customer systems since it maintains customer credit card numbers. It must also ensure it is adhering to tax laws.5. What is Amazon’s ebusiness model? This is somewhat of a trick question, because the answer is that Amazon.com is a B2B, C2C, and a B2C. Amazon.com does business with other businesses (B2B), such as Borders, Target, and Office Depot. Amazon.com also supports a huge business-to-consumer model with their main website interface. Amazon also supports customers doing business with other customers (C2C). 6. How can Amazon use mcommerce to influence its business? mcommerce enables consumers to buy on the fly, from handheld devices and mobile phones. Using Amazon.com’s one-click, customers could search for and buy any of Amazon's offerings, from DVDs and CDs to books and toys, and do it anywhere. Which means customers would have the use of shopping in a traditional brick-and-mortar store, use comparative shopping methods, search Amazon.com for its price, and make a purchasing decision accordingly. 7. Which metrics could Amazon use to assess the efficiency and effectiveness of Amazon’s website? Amazon could use the following metrics to asses its website. Click-through – to determine how many customers visit the site from another site, banner-ad – to determine how many customers visit the site from a banner ad on another site, the number of page views to determine the number of pages presented to a visitor, the pattern of websites visited, including most frequent exit page and most frequent prior website, length of stay on the website, dates and times of visits to determine customer spending habits, number of abandoned shopping carts to determine why customers are leaving the site, identified visitors who purchase recommended products to determine if personalization is working 8. What are some of the business challenges facing Amazon? There are several challenges facing Amazon including protecting its customers from unsolicited goods and illegal or harmful communication. Amazon offers a number of third-party services and it must ensure those parties are operating as expected. If a customer purchases a product from a third-party seller on Amazon and the goods are never shipped, Amazon is held responsible. It must also deal with security issues such as identity theft if there was a breach in its customer systems since it maintains customer credit card numbers. It must also ensure it is adhering to tax laws.

66. CLOSING CASE ONE eBay – The Ultimate ebusiness eBay is one of the only major Internet “pure plays” to consistently make a profit from its inception. What is eBay’s ebusiness model and why has it been so successful? Other major websites, like Amazon.com and Yahoo!, have entered the emarketplace with far less success than eBay. How has eBay been able to maintain its dominant position eBay has long been an emarketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set up shop on eBay? 1. eBay is one of the only major Internet “pure plays” to consistently make a profit from its inception. What is eBay’s ebusiness model and why has it been so successful? eBay began in the C2C space, using the brokerage value model and collecting transaction fees in consumer-to-consumer auctions. Rapid user growth created community, content, and search value streams, which in turn created the critical mass for substantial advertising revenue. B2B followed by offering the Small Business Exchange. In addition, there is nothing that would prevent eBay from licensing its technology in the B2B space, for industry-specific auctions. eBay could potentially expand into the B2C space, providing firms the option of auctioning merchandise directly to consumers using the eBay infrastructure. Finally, while this would be the greatest stretch for eBay, it could choose to move into the C2B space, allowing consumers to “name their own price” for merchandise and services. 2. Other major websites, like Amazon.com and Yahoo!, have entered the emarketplace with far less success than eBay. How has eBay been able to maintain its dominant position. The obvious answer is that eBay's first-mover advantage allowed it to dominate the online auction space. eBay also has an excellent reputation for superior customer service. Two priorities dominate eBay's operational strategy: keeping its buyer/seller community happy, and keeping its massive website up and running. Consumers flock there because of the great product selection. The result is a juggernaut that has vanquished latecomers, such as Yahoo! Auctions and Amazon Auctions. Both of those operations are still in business, but they have reduced expectations and make relatively small contributions to their parent companies' balance sheets. 3. eBay has long been an emarketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set up shop on eBay? Student’s response should refer to critical mass. The so-called "network effect" has bred a critical mass of customers, a group divided into buyers and sellers. Large and small merchants gravitate to eBay because that is where buyers are clustered.1. eBay is one of the only major Internet “pure plays” to consistently make a profit from its inception. What is eBay’s ebusiness model and why has it been so successful? eBay began in the C2C space, using the brokerage value model and collecting transaction fees in consumer-to-consumer auctions. Rapid user growth created community, content, and search value streams, which in turn created the critical mass for substantial advertising revenue. B2B followed by offering the Small Business Exchange. In addition, there is nothing that would prevent eBay from licensing its technology in the B2B space, for industry-specific auctions. eBay could potentially expand into the B2C space, providing firms the option of auctioning merchandise directly to consumers using the eBay infrastructure. Finally, while this would be the greatest stretch for eBay, it could choose to move into the C2B space, allowing consumers to “name their own price” for merchandise and services. 2. Other major websites, like Amazon.com and Yahoo!, have entered the emarketplace with far less success than eBay. How has eBay been able to maintain its dominant position. The obvious answer is that eBay's first-mover advantage allowed it to dominate the online auction space. eBay also has an excellent reputation for superior customer service. Two priorities dominate eBay's operational strategy: keeping its buyer/seller community happy, and keeping its massive website up and running. Consumers flock there because of the great product selection. The result is a juggernaut that has vanquished latecomers, such as Yahoo! Auctions and Amazon Auctions. Both of those operations are still in business, but they have reduced expectations and make relatively small contributions to their parent companies' balance sheets. 3. eBay has long been an emarketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set up shop on eBay? Student’s response should refer to critical mass. The so-called "network effect" has bred a critical mass of customers, a group divided into buyers and sellers. Large and small merchants gravitate to eBay because that is where buyers are clustered.

67. CLOSING CASE ONE eBay – The Ultimate ebusiness What are the three different types of online auctions and which one is eBay using? What are the different forms of online payment methods for consumers and business? How might eBay’s customers benefit from the different payment methods? Which metrics would you use if you were hired to assess the efficiency and effectiveness of eBay’s website? 4. What are the three different types of online auctions and which one is eBay using? Electronic auction - sellers and buyers solicit consecutive bids from each other and prices are determined dynamically. Forward auction - auction that sellers use as a selling channel to many buyers and the highest bid wins. Reverse auction - an auction that buyers use to purchase a product or service, selecting the seller with the lowest bid. eBay provides a forward auction where the highest bid wins. 5. What are the different forms of online payment methods for consumers and business? How might eBay’s customers benefit from the different payment methods? Consumer forms of online payments include: Credit card. A financial cybermediary is an Internet-based company that facilitates payments over the Internet. PayPal is the best-known example of a financial cybermediary. An electronic check is a mechanism for sending a payment from a checking or savings account. There are many implementations of electronic checks, with the most prominent being online banking. An electronic bill presentment and payment (EBPP) is a system that sends bills over the Internet and provides an easy-to-use mechanism (such as clicking on a button) to pay the bill. EBPP systems are available through local banks or online services such as Checkfree and Quicken. A digital wallet is both software and information—the software provides security for the transaction and the information includes payment and delivery information (for example, the credit card number and expiration date). Business forms of online payments include: Electronic data interchange (EDI) - a standard format for exchanging business data. One way an organization can use EDI is through a value-added network. A value-added network (VAN) is a private network, provided by a third party, for exchanging information through a high capacity connection. VANs support electronic catalogs (from which orders are placed), EDI-based transactions (the actual orders), security measures such as encryption, and EDI mailboxes. Financial EDI (financial electronic data interchange) - a standard electronic process for B2B market purchase payments. National Cash Management System is an automated clearinghouse that supports the reconciliation of the payments. 6. Which metrics would you use if you were hired to assess the efficiency and effectiveness of eBay’s website? eBay could use the following metrics to asses its website. Click-through – to determine how many customers visit the site from another site, banner-ad – to determine how many customers visit the site from a banner ad on another site The average spending per customer, the pattern of websites visited, including most frequent exit page and most frequent prior website, length of stay on the website, dates and times of visits to determine customer spending habits, average number of items posted for auction by a customer, average number of items purchased by a customer, number of inactive customer accounts 4. What are the three different types of online auctions and which one is eBay using? Electronic auction - sellers and buyers solicit consecutive bids from each other and prices are determined dynamically. Forward auction - auction that sellers use as a selling channel to many buyers and the highest bid wins. Reverse auction - an auction that buyers use to purchase a product or service, selecting the seller with the lowest bid. eBay provides a forward auction where the highest bid wins. 5. What are the different forms of online payment methods for consumers and business? How might eBay’s customers benefit from the different payment methods? Consumer forms of online payments include: Credit card. A financial cybermediary is an Internet-based company that facilitates payments over the Internet. PayPal is the best-known example of a financial cybermediary. An electronic check is a mechanism for sending a payment from a checking or savings account. There are many implementations of electronic checks, with the most prominent being online banking. An electronic bill presentment and payment (EBPP) is a system that sends bills over the Internet and provides an easy-to-use mechanism (such as clicking on a button) to pay the bill. EBPP systems are available through local banks or online services such as Checkfree and Quicken. A digital wallet is both software and information—the software provides security for the transaction and the information includes payment and delivery information (for example, the credit card number and expiration date). Business forms of online payments include: Electronic data interchange (EDI) - a standard format for exchanging business data. One way an organization can use EDI is through a value-added network. A value-added network (VAN) is a private network, provided by a third party, for exchanging information through a high capacity connection. VANs support electronic catalogs (from which orders are placed), EDI-based transactions (the actual orders), security measures such as encryption, and EDI mailboxes. Financial EDI (financial electronic data interchange) - a standard electronic process for B2B market purchase payments. National Cash Management System is an automated clearinghouse that supports the reconciliation of the payments. 6. Which metrics would you use if you were hired to assess the efficiency and effectiveness of eBay’s website? eBay could use the following metrics to asses its website. Click-through – to determine how many customers visit the site from another site, banner-ad – to determine how many customers visit the site from a banner ad on another site The average spending per customer, the pattern of websites visited, including most frequent exit page and most frequent prior website, length of stay on the website, dates and times of visits to determine customer spending habits, average number of items posted for auction by a customer, average number of items purchased by a customer, number of inactive customer accounts

68. CLOSING CASE TWO EBIZ What other ways could you use the Internet to raise money? What types of businesses could benefit from trading on the Internet? Can you think of any other disruptive or non-traditional ways that you could use the Internet? 1. What other ways could you use the Internet to raise money? There are numerous ways you can use the Internet to raise money. Revenue models such as transaction fees, subscription fees, licensing fees, advertising fees, and many other models can be used to generate revenue on the Internet.   This is an excellent video to inspire your students! Not so long ago, teen Ashley Qualls lived in a one-bedroom apartment with her mom and sister. But with her computer and savvy business sense she made a better life for all of them.  Ashley Qualls doesn't sound like a typical high school student. Maybe that's because the 17-year-old is the CEO of a million-dollar business. http://potw.news.yahoo.com/s/potw/52250/teen-millionaire 2. What types of businesses could benefit from trading on the Internet? Any type of business can benefit including B2B, B2C, C2C, C2B, B2G, G2C, C2G, G2B. 3. Can you think of any other disruptive or non-traditional ways that you could use the Internet? This is a great question to get your students thinking. Be sure to bring up Second Life as virtual businesses are beginning to take off and make money. Here are a few examples you can show in your class. 1. What other ways could you use the Internet to raise money? There are numerous ways you can use the Internet to raise money. Revenue models such as transaction fees, subscription fees, licensing fees, advertising fees, and many other models can be used to generate revenue on the Internet.   This is an excellent video to inspire your students! Not so long ago, teen Ashley Qualls lived in a one-bedroom apartment with her mom and sister. But with her computer and savvy business sense she made a better life for all of them.  Ashley Qualls doesn't sound like a typical high school student. Maybe that's because the 17-year-old is the CEO of a million-dollar business.http://potw.news.yahoo.com/s/potw/52250/teen-millionaire 2. What types of businesses could benefit from trading on the Internet? Any type of business can benefit including B2B, B2C, C2C, C2B, B2G, G2C, C2G, G2B. 3. Can you think of any other disruptive or non-traditional ways that you could use the Internet? This is a great question to get your students thinking. Be sure to bring up Second Life as virtual businesses are beginning to take off and make money. Here are a few examples you can show in your class.

69. CLOSING CASE THREE How Do You Value Friendster? How could you use ebusiness metrics to place a value on Friendster? Why would a venture capital company value Friendster at $53 million when the company has yet to generate any revenue? Why would Google be interested in buying Friendster for $30 million when the company has yet to generate any revenue Identify Friendster’s ebusiness model and explain how the company can generate revenue Explain the ebusiness benefits and challenges facing Friendster 1. How could you use ebusiness metrics to place a value on Friendster? Metrics such as number of hits and number of visitors could help determine the size of Friendster’s market for advertising initiatives. Information on visitors such as age and gender could provide marketing target information. 2. Why would a venture capital company value Friendster at $53 million when the company has yet to generate any revenue? Since the company has yet to generate a dime in revenue, it is impossible to determine how the VC company estimated Friendster at $53 million. Be sure to ask your students if they would invest in a company that has yet to earn any revenues. 3. Why would Google be interested in buying Friendster for $30 million when the company has yet to generate any revenue. Again, since the company has yet to generate a dime in revenue, it is impossible to determine how Google has estimated the value of Friendster at $30 million. 4. Identify Friendster’s ebusiness model and explain how the company can generate revenue. Friendster’s ebusiness model is C2C and could generate revenue from advertising and marketing. Having an audience of 16 to 30 year olds is an attractive marketing for product manufacturers. Many businesses will pay top dollar to advertise on Friendster. Affiliate marketing programs might also be a viable option for Friendster. 5. Explain the ebusiness benefits and challenges facing Friendster. Friendster has several benefits and its primary is its large customer base. Access to its customer base is coveted by many businesses, hence its large venture capital offers. There are several challenges facing Friendster, the largest is protecting its customers from unsolicited goods and illegal or harmful communication. Such as the many occurrences of social issues on the popular MySpace website, Friendster must protect its young clientele from potentially harmful communications. It must also deal with security issues such as identity theft if there was a breach in its customer systems.1. How could you use ebusiness metrics to place a value on Friendster? Metrics such as number of hits and number of visitors could help determine the size of Friendster’s market for advertising initiatives. Information on visitors such as age and gender could provide marketing target information. 2. Why would a venture capital company value Friendster at $53 million when the company has yet to generate any revenue? Since the company has yet to generate a dime in revenue, it is impossible to determine how the VC company estimated Friendster at $53 million. Be sure to ask your students if they would invest in a company that has yet to earn any revenues. 3. Why would Google be interested in buying Friendster for $30 million when the company has yet to generate any revenue. Again, since the company has yet to generate a dime in revenue, it is impossible to determine how Google has estimated the value of Friendster at $30 million. 4. Identify Friendster’s ebusiness model and explain how the company can generate revenue. Friendster’s ebusiness model is C2C and could generate revenue from advertising and marketing. Having an audience of 16 to 30 year olds is an attractive marketing for product manufacturers. Many businesses will pay top dollar to advertise on Friendster. Affiliate marketing programs might also be a viable option for Friendster. 5. Explain the ebusiness benefits and challenges facing Friendster. Friendster has several benefits and its primary is its large customer base. Access to its customer base is coveted by many businesses, hence its large venture capital offers. There are several challenges facing Friendster, the largest is protecting its customers from unsolicited goods and illegal or harmful communication. Such as the many occurrences of social issues on the popular MySpace website, Friendster must protect its young clientele from potentially harmful communications. It must also deal with security issues such as identity theft if there was a breach in its customer systems.

70. BUSINESS DRIVEN BEST SELLERS The Innovator’s Solution, by Clayton Christensen and Michael Raynor Roughly one company in every 10 is able to sustain the kind of growth that translates into an above-average increase in shareholder returns over more than a few years. Once a company’s core business has matured, the pursuit of new platforms for growth entails daunting risk. To put it simply, most companies have no idea how to grow, and pursuing growth the wrong way can be worse than no growth. In The Innovator’s Dilemma, Clayton Christensen displayed how companies that focus on high-end products for profitable customers can be blindsided by “disruptive technologies” from new competitors—innovations that target low-end customers seeking cheaper products. In The Innovator’s Solution, Christensen and co-author Michael Raynor show how established companies can create disruptions rather than being destroyed by them and how to turn innovative ideas into new disruptive products that will lead to long-term profitable growth.Roughly one company in every 10 is able to sustain the kind of growth that translates into an above-average increase in shareholder returns over more than a few years. Once a company’s core business has matured, the pursuit of new platforms for growth entails daunting risk. To put it simply, most companies have no idea how to grow, and pursuing growth the wrong way can be worse than no growth. In The Innovator’s Dilemma, Clayton Christensen displayed how companies that focus on high-end products for profitable customers can be blindsided by “disruptive technologies” from new competitors—innovations that target low-end customers seeking cheaper products. In The Innovator’s Solution, Christensen and co-author Michael Raynor show how established companies can create disruptions rather than being destroyed by them and how to turn innovative ideas into new disruptive products that will lead to long-term profitable growth.

71. BUSINESS DRIVEN BEST SELLERS Purple Cow, by Seth Godin Following the traditional rules of marketing is not enough anymore. Consumers are simply inundated with information channels from newspapers and magazines to blogs and email. In today’s competitive market, companies must create a remarkable new product to make customers to notice. According to marketing guru Seth Godin, such a product is a Purple Cow, a product or service that is worth making a remark about. The impact of advertising in newspapers and magazines is fading as people are overwhelmed with information and have stopped paying attention to most media messages. To create a Purple Cow product, Godin advises companies to stop advertising and start innovating. Godin recommends that marketers target a niche, and he explains different ways to spread an idea to consumers who are most likely to purchase the product. Godin claims there is not a shortage of remarkable ideas—every business has opportunities to do great things—but there is a shortage of the will to execute those ideas. Following the traditional rules of marketing is not enough anymore. Consumers are simply inundated with information channels from newspapers and magazines to blogs and email. In today’s competitive market, companies must create a remarkable new product to make customers to notice. According to marketing guru Seth Godin, such a product is a Purple Cow, a product or service that is worth making a remark about. The impact of advertising in newspapers and magazines is fading as people are overwhelmed with information and have stopped paying attention to most media messages. To create a Purple Cow product, Godin advises companies to stop advertising and start innovating. Godin recommends that marketers target a niche, and he explains different ways to spread an idea to consumers who are most likely to purchase the product. Godin claims there is not a shortage of remarkable ideas—every business has opportunities to do great things—but there is a shortage of the will to execute those ideas.

  • Login