LEARNING OBJECTIVES
• Describe Internet and its capabilities
• Identify Internet benefits to
organizations
• Demonstrate how Internet used for
Electronic Commerce (EC)
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LEARNING OBJECTIVES
• Demonstrate how Internet
Technology used for Intra- and Interorganizational E-Business
• Examine challenges of Internet to
business & society
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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
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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
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INTERNET CAPABILITIES
• 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 (Web): retrieve, format,
display information (text, audio, graphics, video)
using hypertext links
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Internet Address
ggalileo@univpisa.edu.it
INDIVIDUAL OR
ORGANIZATION NAME
HOST
COMPUTER
DOMAIN
LOCATION
DOMAIN NAME
Internet Address
• IP Address: 147.222.29.54
Gonzaga University
Jepson Center
My laptop
Internet Terms
• Home Page: the default screen display
welcomes user to organization’s page
• Web Page: all other html pages
• Webmaster: person in charge of Web site
• Uniform Resource Locator (URL): address
of specific Internet resource
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Internet Terms
• Hypertext Transport Protocol (http):
communications standard used to
transfer Web pages
• Hypertext Markup Language (HTML):
popular programming language for
creating Web sites
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SURFING THE NET
• SEARCH ENGINE: tool for locating
specific sites or information on
WWW
• “PUSH” TECHNOLOGY: server
streams relevant content to browser
• HYPERLINK: spot on screen, when
clicked shifts to a new page or site
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INTRANET
• Internal Network
• Use browser technology to overcome
“platform” differences
• FIREWALL: Security System to
Prevent Invasion of Private Networks
• Chmod 640?
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EXTRANET
ALLOWS SELECT USERS OUTSIDE
ORGANIZATION TO USE ITS
INTRANET:
• CUSTOMERS
• BUSINESS PARTNERS
• VENDORS
See Electronic Data Interchange, Chapter 8
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EXTRANET
DATABASES
CUSTOMER
SUPPLIER
INTERNET
FIREWALL
SERVER
BUSINESS
PARTNER
CLIENTS
EXTRANET
• ATT Server to the World ambition
• An office networked via phone line
on the wall
• Connect through ATT Central
Computer
• Low maintenance cost; no hassle
Application Service
Provider (ASP)
• Rent instead of own
• Someone else handles upgrading
problems
• Some applications are too expensive
for one company to own (availability)
• Technical support from ASPs
(expertise)
Internet & E-Commerce
• EASY TO LINK WITH OTHER
BUSINESSES, CUSTOMERS
• CAN UPDATE PRODUCT
INFORMATION, ORDERING,
CUSTOMER SUPPORT
• ON-LINE STOREFRONTS
• ENHANCED BUSINESS FORMS
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Internet & E-Commerce
• CUSTOMER-CENTERED RETAILING
– DISINTERMEDIATION: removal of
intermediate layers streamlines process
– REDUCED COST TO BUYER, SELLER
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INTERNET BUSINESS MODELS
• Virtual Storefront: sells goods, services
on-line (Amazon.com)
• Marketplace Concentrator: concentrates
information from several providers
(Portals)
• Information Broker: provides product,
pricing, availability information (E-bay)
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INTERNET BUSINESS MODELS
• Transaction Broker: buyers view
rates, terms from various sources
(Lendingtree.com)
• Electronic Clearinghouse: auctionlike setting, products, prices, change
in response to demand (E-bay)
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INTERNET BUSINESS MODELS
• Digital Product Delivery: sell, download
software, other digital products
• Content Provider: creates revenue
through providing client for a fee, and
advertising (www.wsj.com)
• On-line Service Provider: provides
service, support for hardware, software
products
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INTRANETS AND
ELECTRONIC BUSINESS
• ELECTRONIC COMMERCE
SERVICES
• BENEFITS
• GROUP COLLABORATION
• FUNCTIONAL APPLICATIONS
• SUPPLY CHAIN MANAGEMENT
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E-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)
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E-Commerce Services:
• 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)
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SUPPLY-CHAIN MANAGEMENT
CUSTOMERS
MARKETING
& SALES
PRODUCTION
PLANNING
CUSTOMER
SERVICE
PROCUREMENT
INTRANET
ACCOUNTING &
FINANCE
SHIPPING &
DISTRIBUTION
INVENTORY
PRODUCTION &
MANUFACTURING
CHALLENGES &
OPPORTUNITIES
• UNPROVEN BUSINESS MODELS
• BUSINESS PROCESS CHANGE
REQUIREMENTS
• CHANNEL CONFLICTS
• TECHNOLOGY HURDLES
• LEGAL ISSUES
• SECURITY & PRIVACY
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