ELECTRONIC BUSINESS, INTRANETS
& EXTRANETS
ELECTRONIC COMMERCE
The ________ exchange of goods, services, and
money among firms, and between ________
and their customers
5-2
TYPES OF ELECTRONIC COMMERCE
________
________
________
________
5-3
REVENUE PARADIGMS
________
- Cost of goods sold
Gross margin
- Expenses
________
• Margin * ________
(SP – cost) * ________
4
• How do we make a buck?
BUSINESS ADVANTAGES OF B2B INCLUDE:
Managing ________ more efficiently
 Adjusting more quickly to customer demand


Getting ________ to market faster

Obtaining ________ prices on supplies
Sales
- Cost of goods sold
Gross margin
- Expenses
Net income
5
Ebake.com
BUSINESS ADVANTAGES OF B2C INCLUDE:
Access to a ________ selection of products and services
 Access to ________ at lower costs
 Convenience for transactions or for obtaining information
 Access to a wider selection of products and services
 Access to ________ at lower costs
 Convenience for transactions or for obtaining information

Sales
- Cost of goods sold
Gross margin
- Expenses
Net income
6
INTERNET &WORLD WIDE WEB CAPABILITIES
Information
Dissemination
Transaction
Support
________
World Wide Web
Interactive
Communication
________
Mass
Customization
5-7
6%
IMPACT OF THE WEB: ________
Manufacturer
or
Service
Provider
Intermediary
(Middleman)
Customer
(Consumer
or
Business)
5-8
________
Removal of the ________ ________ in a sale.
• Companies can sell directly to customers (retail or
wholesale) without assistance using the Internet
6%
 Are
there any downsides to
disintermediation for a manufacturer or
primary creator of services?

If yes , what are the disadvantages?
 If
no, why don’t all “manufacturers
disintermediate their distribution channel?
ELECTRONIC COMMERCE BUSINESS STRATEGIES
Business Strategies come in one of the following three
types. All require a sound business model to be successful
chapters
Amazon
KEY INGREDIENTS OF A BUSINESS MODEL
5-11
CLICK-ONLY STRATEGY
5-12
STAGES OF BUSINESS-TO-CONSUMER
TRANSACTIONS
5-13
(e.g. Electronic
_________)
(e.g. displaying a
_______balance)
(e.g. ______
a book)
Working 24//7
__________ COMMERCE
__________ commerce (m-commerce) relies on the use
of wireless devices, such as personal digital assistants,
cell phones, and smart phones, to place orders and
conduct business
 Issues confronting m-commerce

User-friendliness of the wireless device
 __________ speed
 Security
 __________ of life

14
M-COMMERCE AND THE KEY DRIVERS FOR
GROWTH
Any electronic transaction or information interaction conducted
using a wireless, mobile device, and mobile networks, that leads
to transfer of real or perceived value in exchange for
information, service, or goods
Driver One: __________ in the Internet
Driver Two: __________ of High Speed Networks
Driver Three: __________ in Mobile Devices
5-15
HOW M-COMMERCE DIFFERS FROM GENERAL EB
5-16
INTRANETS
5-17
Intranets
• An________, private network using Web technologies to
securely transmit information within the organization.
• This ________ internal Web limits viewing access to authorized
users within the organization
Intranet Benefits
• Improved ________access to authorized user
• Improved ________and accuracy of information
• Global reach allowing employees access from anywhere
• Cross-________integration
• Low ________deployment
• Positive________on investment
INTRANET APPLICATIONS
________
5-18
________
Intranet Hub
Application
Integration
Online Entry of
Information
Real-time Access
To Information
EXTRANETS – BUSINESS TO BUSINESS
ECOMMERCE
• Extranets enable two
or more firms to use
the Internet to do
business together
5-19
ELECTRONIC DATA INTERCHANGE (EDI)
Electronic Data Interchange
• The ________ of electronic business forms between business
partners (e.g. purchase order)
• Typically used by large organizations…very expensive
• The internet has opened this technology to smaller firms
How it works
• EDI transactions are system generated by the sender and then
transmitted to the receiver by a ________
• VAN (Value Added Network) providers are private network
operators that provide guaranteed delivery
Standards
• Document types and formats are universally standardized
• Two standards exist: ANSI X.12 and UN/EDIFACT
5-20
ELECTRONIC DATA INTERCHANGE (EDI) EXAMPLE
5-21
EXTRANETS
________
secure networks that provide customers, suppliers, and
employees with access to internal systems
• replaced ________for smaller firms
Extranet Benefits
• timeliness &accuracy of communications, reducing errors &
misunderstandings
• Allows ________management of documents allowing single
updates
• Uses standard web protocols
• Easy to use, requires little training
• Used to automate transactions, reducing cost and cycle time
5-22
Virtual private network (VPN): a secure
connection between two points across the Internet
________: the process by which VPNs
transfer information by encapsulating
traffic in IP packets over the Internet

23
EXTRANET APPLICATIONS
Supply Chain
Management
Real-Time
Info Access
Procurement
Portals
Exchanges
________
________
Portals
________Portals
5-24
EXTRANET APPLICATIONS: EXCHANGES AND
PORTALS
5-25
e.g. SciQuest.com
e.g. Premier.Dell.com
e.g. Ford Supplier Portal)
NEW TECHNOLOGIES FOR B2B ELECTRONIC
COMMERCE
XML - Extensible Markup Language
EBRL - Extensible Business Reporting Language
5-26
NEW TECHNOLOGIES FOR B2B ELECTRONIC COMMERCE
_____________ - Radio Frequency Identification
• Used for tagging and tracking physical items
• _____________ system uses a transceiver and antenna to
transfer information to a processing device from an RFID tag
_____________ Benefits
• RFID is more powerful than bar-code technology because it
does not require visual line-of-sight reading
• _____________ tags can be placed anywhere (e.g. clothes,
pets, cars, parts, store items, etc.)
_____________ Issues
• Deployment is growing rapidly but it is still expensive
• There is no clear set of data standards
• Global radio frequencies differ between countries
5-27
RFID LIBRARY EXAMPLE