L Ch8: Internet Learning Objectives

1. L Ch8: InternetLearning Objectives • DESCRIBE INTERNET, ITS CAPABILITIES • DEMONSTRATE HOW INTERNET USED FOR ELECTRONIC COMMERCE • DEMONSTRATE HOW INTERNET TECHNOLOGY USED FOR INTRA- AND INTERORGANIZATIONAL ELECTRONIC BUSINESS • CHALLENGES OF INTERNET TO BUSINESS & SOCIETY Sheu

2. THE INTERNET • BEGAN AS GOVERNMENT CONNECTION OF UNIVERSITIES • INTERNET SERVICE PROVIDER (ISP): organization connected to Internet, leases temporary connections to subscribers • NO ONE OWNS IT, NO FORMAL ORGANIZATION Sheu

3. INTERNET CAPABILITIES • E -MAIL:person -to-person messaging; document sharing • USERNET NEWSGROUPS:electronic bulletin boards for discussion groups • LISTSERVs:e-mail list servers for discussion groups • CHATTING:interactive conversations • TELNET:log on one computer, work on another • FTP:transfer files from computer to computer • GOPHERS:use menus to locate text material • ARCHIE:search database for files to download • VERONICA:speeds searching gopher sites by using keywords • WIDE AREA INFORMATION SERVICE (WAIS):locates files using key words • WORLD WIDE WEB:retrieve, format, display information (text, audio, graphics, video) using hypertext links Sheu

4. INTERNET TERMS • HOME PAGE: • WWW screen display welcomes user to organization’s page • WEBMASTER: • person in charge of Web site • UNIFORM RESOURCE LOCATOR (URL): • address of specific Internet resource • HYPERTEXT TRANSPORTPROTOCOL (http): • communications standard used to transfer Web pages • HYPERTEXT MARKUP LANGUAGE (HTML): • popular programming language for creating Web sites • SEARCH ENGINE: • tool for locating specific sites or information on WWW • “PUSH” TECHNOLOGY: • server streams relevant content to browser automatically. • Channel: Stream of info distributed thru PUSH technology. • HYPERLINK:spot on screen, when clicked shifts to a new page or site Sheu

5. INTRANET • INTERNAL NETWORK • WWW TECHNOLOGY • FIREWALL:Security System to Prevent Invasion of Private Networks • OVERCOMES COMPUTER PLATFORM DIFFERENCES • OFTEN INSTALLED ON EXISTING NETWORK INFRASTRUCTURE Sheu

6. EXTRANET ALLOWS SELECT USERS OUTSIDE ORGANIZATION TO USE ITS INTRANET: • CUSTOMERS • BUSINESS PARTNERS • VENDORS Sheu

7. EXTRANET Sheu

8. INTERNET BENEFITS • GLOBAL CONNECTIVITY • REDUCED COMMUNICATIONS COST • Internet Telephony (IP telephony) • LOWER TRANSACTION COSTS • REDUCED AGENCY COSTS • INTERACTIVITY, FLEXIBILITY, CUSTOMIZATION • ACCELERATED KNOWLEDGE Sheu

9. INTERNET & ELECTRONIC COMMERCE • EASY TO LINK WITH OTHER BUSINESSES, CUSTOMERS • CAN UPDATE PRODUCT INFORMATION, ORDERING, CUSTOMER SUPPORT • ON-LINE STOREFRONTS • ENHANCED BUSINESS FORMS Sheu

10. INTERNET & ELECTRONIC COMMERCE • CUSTOMER-CENTERED RETAILING • DISINTERMEDIATION: removal of intermediate layers streamlines process • REDUCED COST TO BUYER, SELLER • Example modes: • Direct sales over web. • Interactive marketing • Customer self-service • HIT:each request for a file recorded in log file Sheu

11. INTERNET BUSINESS MODELS • VIRTUAL STOREFRONT: • sells goods, services on-line • MARKETPLACE CONCENTRATOR: • concentrates information from several providers • INFORMATION BROKER: • provides product, pricing, availability information • TRANSACTION BROKER: • buyers view rates, terms from various sources • ELECTRONIC CLEARINGHOUSE: • auction-like setting, products, prices, change in response to demand • REVERSE AUCTION • Customer submit a bid to multiple sellers to buy goods or services at a buyer-specified price. • DIGITAL PRODUCT DELIVERY: • sell, download software, other digital products • CONTENT PROVIDER: • creates revenue through providing client for a fee, and advertising • ON-LINE SERVICE PROVIDER: • provides service, support for hardware, software products Sheu

12. ELECTRONIC COMMERCE SUPPORT SYSTEMS • WEB HOSTING SERVICES:provides large servers for Web sites of fee-paying customer • ELECTRONIC PAYMENT SYSTEM:using Web for electronic funds transfers, credit , smart & debit cards Sheu

13. INTRANETS AND ELECTRONIC BUSINESS • ELECTRONIC COMMERCE SERVICES • B2B: Business to business (EDI) • B2C: Business to customers • BENEFITS • GROUP COLLABORATION • FUNCTIONAL APPLICATIONS • SUPPLY CHAIN MANAGEMENT Sheu

14. ELECTRONIC COMMERCE SERVICES: • ICAT:on-line catalog shopping, order placement (Icat) • NET.COMMERCE:merchant server supporting Secure Electronic Transactions protocol (IBM) • MERCHANT SERVER: templates for storefronts, point-of-sales software (Microsoft) • MERCHANT SYSTEM:full set of retailing services (Netscape) • OM-TRANSACT:modular structure for payment schemes (Open Market) • PC-CHARGE: PC-based Web server credit card processing (Go Software) Sheu

15. BENEFITS OF INTRANETS: • CONNECTIVITY • CAN BE TIED TO LEGACY SYSTEM & TRANSACTION PROCESSING • INTERACTIVE APPLICATIONS WITH TEXT, AUDIO, VIDEO • SCALABLE TO LARGER OR SMALLER SYSTEMS AS REQUIRED • EASY TO USE BROWSER INTERFACE • LOW START-UP COSTS • RICH, RESPONSIVE INFORMATION ENVIRONMENT • REDUCED INFORMATION DISTRIBUTION COSTS Sheu

16. GROUP COLLABORATION: • TEAMWARE:intranet-based applications allow teams to share ideas, documents, brainstorming, scheduling. Similar to chat room. • INTERNAL NEWSLETTER • ABILITY TO WORK AT HOME • SHARE INTERNET DISCOVERIES WITH COLLEAGUES Sheu

17. FUNCTIONAL APPLICATIONS: • FINANCE & ACCOUNTING • HUMAN RESOURCES • SALES & MARKETING • MANUFACTURING & PRODUCTION Sheu

18. FINANCE & ACCOUNTING: • GENERAL LEDGER REPORTING • PROJECT COSTING • ANNUAL REPORTS • BUDGETING HUMAN RESOURCES: • CORPORATE POLICIES • EMPLOYEE SAVINGS PLANS • BENEFITS ENROLLMENT • ON-LINE TRAINING • JOB POSTING Sheu

19. SALES & MARKETING: • COMPETITOR ANALYSIS • PRICE UPDATES • PROMOTIONAL CAMPAIGNS • SALES PRESENTATIONS • SALES CONTRACTS MANUFACTURING & PRODUCTION: • QUALITY MEASUREMENTS • MAINTENANCE SCHEDULES • DESIGN SPECIFICATIONS • MACHINE OUTPUT • ORDER TRACKING Sheu

20. SUPPLY-CHAIN MANAGEMENT Sheu

21. CHALLENGES & OPPORTUNITIES • UNPROVEN BUSINESS MODELS • BUSINESS PROCESS CHANGE REQUIREMENTS • CHANNEL CONFLICTS • Own brand & OEM • Distributors & Direct sales • TECHNOLOGY HURDLES • LEGAL ISSUES • SECURITY & PRIVACY Sheu