Chapter 7
 Discuss
Intranet and its benefits
 Discuss
e-commerce and various forms of e-commerce
 Discuss
the security issues in the e-commerce environment.
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 Since
the inception of Internet, virtually all the industries have
seen new levels of competition.
 In
order to survive in this competitive environment,
organizations must perform their business at unprecedented
level of effectiveness.
 Internet
has also made it possible for organizations to
effectively collaborate with other organizations worldwide.
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 Shortened
product lifecycle: Time to market is becoming an ever-
significant factor on the ability to achieve market share,
profitability, and even survival as product lifecycle continue to
become shorter.
 Increased
cost pressures: The need control cost, with the
corresponding desire to improve productivity, continue unabated
with renewed emphasis on the productivity of the knowledge
workers.
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
Increased demand for quality and customer service: As competition builds, the
increase in customer’s expectation for responsiveness and personalized
support is beginning to change the culture and operation of many industries.

Changing Markets: The need and ability to respond to ever-changing market
forces continue to push the need to adapt and implement technology to be
able to rapidly react.

New business model: Internet has facilitated new models of performing
business; tele-working, supply chain management and virtual corporations.
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
Universal communication: Any organization on the Internet can
communicate with any other organization/ individual.

Performance: On a high level bandwidth network, the ability to transmit
the audio and video files increases the level and effectiveness of
communication.

Reliability: Internet technologies are proven, highly robust and reliable.

Cost: Internet technology cost are very low.

Standards: Internet standards (protocols) allow speedy and effective
intercommunication between organizations/ departments.
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 Organization
are using Intranet more and more for the
following reasons:
Publications of corporate documents
Access into searchable directories
Corporate/ department/ individual pages
Simple groupware applications
Mail/ e-mail
Software distribution.
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 E-commerce
is a dynamic set of technologies, applications
and business processes that link enterprise, consumers, and
communities through electronic transactions.
 E-commerce
facilitates the electronic and physical exchange
of goods, services, information, and capital.
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
E-commerce improves commerce through the use of many core
technology tools:
 The Web
 Electronic data interchange
 Electronic mail
 Electronic fund transfer
 Electronic benefits transfer
 Electronic catalogs
 Credit cards
 Smart cards
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 E-commerce
strategies allow businesses to use electronic
alliances to speed the delivery of product and services to
market.
 E-commerce
involves buying and selling goods and services
online, usually in the form of business-to-business (B2B),
business-to-commerce (B2C), consumer-to-consumer (C2C)
and government-to-consumer (G2C).
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 B2C
is a form of e-commerce where the business
organizations directly interact with the customer.
 Biggest
advantage of B2C is the disintermediation. In B2C,
there is no need to worry about inventory, warehouse,
wholesale issues.
 Example:
Buying Dell computer from www.dell.com
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 B2B
enables the business to reengineer their supply chain
and establish a stronger partnership.
 Cisco
is the best example of B2B. Cisco uses its extranet for
online sales and electronic purchasing, thus reducing the
marketing, administrative costs.
 ERP
packages play a very important role in B2B
environment.
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 The
global connectivity of the Internet and the interface of
WWW supports transactions directly between consumers.
 Example
www.ebay.com
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 G2C
uses improved Internet technologies to make it easy for
citizens and businesses to interact with the government.
 Examples
of G2C include electronic utility bill payments,
providing speedy services to government services etc.
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 M-commerce
is an extension of e-commerce, it involves
selling of goods and services through wireless devices such
as smart-phones and tablets.
 Example:
checking bank account information via your smart-
phone, online purchase via the smart-phone.
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
There are four distinct business/ revenue models for doing business on
the Internet.
 Direct selling: a manufacturer directly selling the product on the Internet.
 Selling advertising space: companies can generate revenues by selling
adverting space on their websites.
 Charging for content: news/ media companies charge subscription fees for
online content.
 Charging for service: yahoo.com charging for email services.
 Telephone service (VoIp): users can make phone calls by using broadband
Internet connect. Example: Skype
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 Electronic
fund transfer and electronic data transfer are the
two important functions in e-commerce and m-commerce.
 Since
transfer of money and information over public network
is unsecure, some security measures are needed to increase
the security of e-commerce and m-commerce applications.
 In
e-commerce and m-commerce applications, security can
be implemented via web seals.
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 Portals
are a Web application that uses a common interface and
technology to tie together multiple related, but independent,
content pieces or transactional applications.
 There
are some important aspects about a portal,
Common interface
Related
Independent
 Example:
iGoogle
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