Chapter 1, Introduction to e-Business
and e-Commerce
Outline
1.1
1.2
1.3
1.4
1.5
1.6
Introduction: Transitioning to the Web
History of the Internet
History of the Web
Internet and World Wide Web Development
e-Business and e-Commerce Overview
A Word of Caution
 2001 Prentice Hall, Inc. All rights reserved.
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1.1 Introduction: Transitioning to the
Web
• The Internet has changed the way people
communicate, conduct business and manage their
daily lives
• Technologies reviewed
• Resources used
 2001 Prentice Hall, Inc. All rights reserved.
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1.2 History of the Internet
• Advanced Research Projects Agency of the
Department of Defense (ARPA)
– Implemented the ARPAnet, the grandparent of today’s
Internet
• Packet switching
– Digital data is sent in small packages called packets
• Packets
– Contain data, address information, error-control information
and sequencing information
• Transmission Control Protocol (TCP)
– ensures that messages are properly routed from sender to
receiver and that those messages arrived intact
 2001 Prentice Hall, Inc. All rights reserved.
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1.2 History of the Internet
• Internetworking Protocol (IP)
– Enabled the intercommunication of inter-organization and
intra-organization networks
• The Internet was initially limited to universities
and research institutions
• Bandwidth
– The information carrying capacity of communications lines
 2001 Prentice Hall, Inc. All rights reserved.
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1.3 History of the World Wide Web
• World Wide Web
– Locate and view multimedia-based documents on almost any
subject
– Makes information instantly and conveniently accessible
worldwide
– Possible for individuals and small businesses to get
worldwide exposure
– Changing the way business is done
 2001 Prentice Hall, Inc. All rights reserved.
1.4 Internet and World Wide Web
Development
• Computer use is increasing in almost every field
of endeavor
• Dramatic decrease in the cost of computing
• Enhanced multimedia capabilities
• Increased publishing and learning opportunities
• Enhanced communication technologies
 2001 Prentice Hall, Inc. All rights reserved.
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1.5 e-Business and e-Commerce
Overview
• Successful e-businesses are those that recognize
the needs of their target audiences and match those
needs with relevant content
• Seasoned professionals and young entrepreneurs
• e-Commerce
– Involves exchanges among customers, business partners and
the vendor
• e-Business
– Includes operations that are handled within the business
itself
 2001 Prentice Hall, Inc. All rights reserved.
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1.5 e-Business and e-Commerce
Overview
• Intense competition
• Businesses must adjust to new technologies and
implement new systems
• Customized production capabilities
• Finding and keeping key employees
• 24-by-7 maintenance responsibilities
• Must be reliable, fast, functional and user friendly
• Brick-and-mortar businesses
– Businesses that have only a physical presence
• Click-and-mortar businesses
– Businesses that have both an online and an offline presence
 2001 Prentice Hall, Inc. All rights reserved.
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1.5 e-Business and e-Commerce
Overview
• Virtual office
– All communications are conducted via phone, voice mail,
fax, e-mail and the emerging capabilities of the Internet
• Personalization
– Tailoring Web pages to users’ individual preferences and
letting users bypass irrelevant content
• Copyright infringement
• Privacy invasion
– The sale of personal data to another organization without the
consumer’s knowledge
– Tracking of Internet activity
– Unauthorized access to credit-card numbers, medical history
and criminal history
 2001 Prentice Hall, Inc. All rights reserved.
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1.5 Campusfoods.com Feature
• Campusfoods.com
• Developed by students at the University of
Pennsylvania
• Serves approximately 150 colleges and
universities around the United States
• Built on investments made by private investors,
family members and friends
• Revenue is generated by a percentage taken from
transaction fees
 2001 Prentice Hall, Inc. All rights reserved.
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1.5 Campusfoods.com Feature
Campusfoods.com home page. (Courtesy of Campusfoods.com.)
 2001 Prentice Hall, Inc. All rights reserved.
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1.6 A Word of Caution
• Avoid
–
–
–
–
Poor management
Ineffective marketing
Ill-designed logistics
Unrealistic expectations
• Recognize the difficulty of finding funding and
going public
• Finding space
• Hiring employees
 2001 Prentice Hall, Inc. All rights reserved.