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CHAPTER THREE OVERVIEW

CHAPTER THREE OVERVIEW. SECTION 3.1 - BUSINESS AND THE INTERNET Disruptive Technology Evolution of the Internet Accessing Internet Information Providing Internet Information SECTION 3.2 - EBUSINESS Ebusiness Basics Ebusiness Models Organizational Strategies for Ebusiness

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CHAPTER THREE OVERVIEW

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  1. CHAPTER THREE OVERVIEW • SECTION 3.1 - BUSINESS AND THE INTERNET • Disruptive Technology • Evolution of the Internet • Accessing Internet Information • Providing Internet Information • SECTION 3.2 - EBUSINESS • Ebusiness Basics • Ebusiness Models • Organizational Strategies for Ebusiness • Measuring ebusiness Success • Ebusiness Benefits and Challenges • New Trends in Ebusiness: Egovernment and Mcommerce

  2. DISRUPTIVE VERSUS SUSTAINING TECHNOLOGY • Disruptive technology – a new way of doing things that initially does not meet the needs of existing customers • Sustaining technology – produces an improved product customers are eager to buy

  3. EVOLUTION OF THE INTERNET • The Internet began as an emergency military communications system operated by the Department of Defense • Gradually the Internet moved from a military pipeline to a communication tool for scientists to businesses

  4. EVOLUTION OF THE WORLD WIDE WEB • The Internet’s impact on information • Easy to compile • Increased richness and reach • Improved content • The Internet makes it possible to perform business in ways not previously imaginable • It can also cause a digital divide

  5. EVOLUTION OF THE WORLD WIDE WEB • World Wide Web (WWW) – a global hypertext system that uses the Internet as its transport mechanism • Web 2.0 • Mashups • Web 3.0 • Hypertext transport protocol (HTTP) – the Internet standard that supports the exchange of information on the WWW

  6. ACCESSING INTERNET INFORMATION • Four tools for accessing Internet information • Intranet – internalized portion of the Internet, protected from outside access, for employees • Extranet – an intranet that is available to strategic allies • Portal – website that offers a broad array of resources and services • Kiosk – publicly accessible computer system that allows interactive information browsing

  7. PROVIDING INTERNET INFORMATION • Three common forms of service providers • Internet service provider (ISP) –provides individuals and other companies access to the Internet • Online service provider (OSP) – offers an extensive array of unique Web services • Application service provider (ASP) – offers access over the Internet to systems and related services that would otherwise have to be located in organizational computers

  8. EBUSINESS MODELS • Ebusiness model – an approach to conducting electronic business on the Internet

  9. ORGANIZATIONAL STRATEGIES FOR EBUSINESS • Primary business areas taking advantage of ebusiness include: • Marketing/sales • Financial services • Procurement • Customer service • Intermediaries

  10. MEASURING EBUSINESS SUCCESS • Most companies measure the traffic on a website as the primary determinant of the website’s success • Clickstream data tracks the exact pattern of a consumer’s navigation through a website • Website metrics include visitor metrics, exposure metrics, visit metrics, and hit metrics

  11. EBUSINESS BENEFITS AND CHALLENGES • Ebusiness benefits include: • Highly accessible • Increased customer loyalty • Improved information content • Increased convenience • Increased global reach • Decreased cost • Ebusiness challenges include: • Protecting consumers • Leveraging existing systems • Increasing liability • Providing security • Adhering to taxation rules

  12. EBUSINESS BENEFITS AND CHALLENGES • There are numerous advantages and limitations in ebusiness revenue models including: • Transaction fees • License fees • Subscription fees • Value-added fees • Advertising fees

  13. EGOVERNMENT AND MCOMMERCE

  14. EGOVERNMENT AND MCOMMERCE Mobile commerce - the ability to purchase goods and services through a wireless Internet-enabled device

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