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Chapter 7 E-Commerce: The Internet, Intranets, and Extranets

Chapter 7 E-Commerce: The Internet, Intranets, and Extranets. Learning Objectives. Explain how the Internet functions List the features for information exchange that can be conducted over the World Wide Web Explain how the Web facilitates electronic commerce

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Chapter 7 E-Commerce: The Internet, Intranets, and Extranets

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  1. Chapter 7E-Commerce: The Internet, Intranets, and Extranets Management Information Systems, 4th Edition

  2. Learning Objectives • Explain how the Internet functions • List the features for information exchange that can be conducted over the World Wide Web • Explain how the Web facilitates electronic commerce • Explain basic business models on the Web Management Information Systems, 4th Edition

  3. What is the Internet? • The Development of the Internet • ARPANET was open system designed for the free flow of information, but available only to members of academic institutions and some in the defense industry. • U.S. government decided to split the network into a civilian one and a military one • Civilian network became the Internet • Internet is now a network of networks Management Information Systems, 4th Edition

  4. What is the Internet? (Cont.) Management Information Systems, 4th Edition

  5. Growth of the Internet • Number of servers • 147 million in mid-2003 • Number of users • More than 600 million; 10 percent of the world population Management Information Systems, 4th Edition

  6. Growth of the Internet (Cont.) Management Information Systems, 4th Edition

  7. Growth of the Internet (Cont.) Management Information Systems, 4th Edition

  8. Growth of the Internet Management Information Systems, 4th Edition

  9. How the Internet Works • Definitions • Uniform Resource Locator (URL) • Hypertext Transfer Protocol (HTTP) • Domain Name • Hypertext Markup Language (HTML) • Top Level Domain (TLD) Management Information Systems, 4th Edition

  10. How the Internet Works (Cont.) Management Information Systems, 4th Edition

  11. Internet Domains • IP Number • Domain Naming System (DNS) • A domain name is assigned to each IP address • Domain names are registered by one of a group of companies authorized to assign unique names Management Information Systems, 4th Edition

  12. Internet Domains (Cont.) Management Information Systems, 4th Edition

  13. Internet Addressing Management Information Systems, 4th Edition

  14. Static and Dynamic IP Numbers • Static: • Servers and many other computers and devices are assigned a permanent IP number • Dynamic: • A computer connected to the Internet intermittently may be assigned a temporary IP number for the duration of its connection only Management Information Systems, 4th Edition

  15. Common Internet Applications • Email • File Transfer • Newsgroups and Blogs • Instant Messaging • Internet Telephoning • Web Browsers Management Information Systems, 4th Edition

  16. The World Wide Web • Web Software • HTML and XML • Web Page Editors • Java, JavaScript, and ActiveX • Web-Application-Interfaces • VRML • Cookies Management Information Systems, 4th Edition

  17. The World Wide Web (Cont.) Management Information Systems, 4th Edition

  18. Intranets and Extranets • Intranet • A within-organization computer network that uses Internet technologies to communicate • Extranet • Uses Internet technologies to facilitate communication and trade between an organization and its business partners, such as suppliers Management Information Systems, 4th Edition

  19. Intranets and Extranets (Cont.) Management Information Systems, 4th Edition

  20. Intranets and Extranets (Cont.) Management Information Systems, 4th Edition

  21. Intranets and Extranets (Cont.) Management Information Systems, 4th Edition

  22. Establishing an E-CommerceWeb Site • Several Options • Installing their own server • Contracting with an ISP • Contracting with a Web portal • Establishing an electronic storefront • Contracting with a Web hosting service • Using a virtual Web server • Setting up a subdomain Management Information Systems, 4th Edition

  23. Establishing an E-CommerceWeb Site (Cont.) • Dedicated Server • Expensive option with the greatest degree of control • Requires expertise • Specialists needed maintain the server • Load balancing transfers visitor inquiries from a busy server to a less busy server Management Information Systems, 4th Edition

  24. Establishing an E-CommerceWeb Site (Cont.) • ISP Site • Low-fee or free space for individual or business Web sites. • Many small businesses avoid this option • Can give the appearance that such online businesses are ephemeral Management Information Systems, 4th Edition

  25. Establishing an E-CommerceWeb Site (Cont.) • Web portal • Limited space and design control • Electronic Storefront • Cybermall • Web Hosting Service • Virtual Web Server • Subdomain Management Information Systems, 4th Edition

  26. Establishing an E-CommerceWeb Site (Cont.) Management Information Systems, 4th Edition

  27. Establishing an E-CommerceWeb Site (Cont.) Management Information Systems, 4th Edition

  28. Business-to-Business Trading • Electronic Data Interchange • Exchanges and Auctions • Online Business Alliances • Application and Storage Service Providers Management Information Systems, 4th Edition

  29. Business-to-Consumer Trading • Advertising • Unique visitors per month • Unique visitor pages • Reach percentage • Banners Management Information Systems, 4th Edition

  30. Business-to-Consumer Trading (Cont.) Management Information Systems, 4th Edition

  31. Business-to-Consumer Trading (Cont.) • E-retailing • Customer Relationship Management (CRM) • Consumer Profiling • Auctions and Reverse Auctions • Content Providers • Software Sales • Stock Trading • Distributed R&D Management Information Systems, 4th Edition

  32. Business-to-Consumer Trading (Cont.) Management Information Systems, 4th Edition

  33. Rules for Successful Online Business Transactions • Target the right customer • Own the customer’s total experience • Personalize the service • Shorten the business cycle • Let the customers help themselves • Be proactive Management Information Systems, 4th Edition

  34. Successful Business Models • Niche Retailing • Selling Hard-to-obtain information • Click-and-mortar retailing • Rules for Successful Web Page Design • E-Government • M-Commerce Management Information Systems, 4th Edition

  35. E-Commerce Practices on the Internet Management Information Systems, 4th Edition

  36. Management Challenges and Solutions • Reduced Control over Information Resources • Reduced Budgetary Control • Cost/Benefit Analysis • Scalability • Security • Education Management Information Systems, 4th Edition

  37. E-Commerce is Every Commerce • Web technologies have been integrated into the business world • Information that flows inside an organization actually uses the Internet segments of intranets • Businesses not yet on the Internet will eventually be there Management Information Systems, 4th Edition

  38. Online Annoyances • Spam • Pop up Windows • Adware and Spyware Management Information Systems, 4th Edition

  39. Summary • How the Internet functions • Information exchange over the Internet • The web facilitates electronic commerce • Business models on the Web Management Information Systems, 4th Edition

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