10.1

LEARNING OBJECTIVESLEARNING OBJECTIVES

• DESCRIBE INTERNET, ITS DESCRIBE INTERNET, ITS CAPABILITIESCAPABILITIES

• IDENTIFY INTERNET BENEFITS TO IDENTIFY INTERNET BENEFITS TO ORGANIZATIONSORGANIZATIONS

• DEMONSTRATE HOW INTERNET DEMONSTRATE HOW INTERNET USED FOR ELECTRONIC COMMERCEUSED FOR ELECTRONIC COMMERCE

**

10.2

LEARNING OBJECTIVESLEARNING OBJECTIVES

• DEMONSTRATE HOW INTERNET DEMONSTRATE HOW INTERNET TECHNOLOGY USED FOR INTRA- TECHNOLOGY USED FOR INTRA- AND INTERORGANIZATIONAL AND INTERORGANIZATIONAL ELECTRONIC BUSINESSELECTRONIC BUSINESS

• EXAMINE CHALLENGES OF EXAMINE CHALLENGES OF INTERNET TO BUSINESSINTERNET TO BUSINESS

& SOCIETY & SOCIETY

**10.3

MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

• THE INTERNETTHE INTERNET

• INTERNET & ELECTRONIC INTERNET & ELECTRONIC COMMERCECOMMERCE

• INTRANETS & ELECTRONIC INTRANETS & ELECTRONIC BUSINESSBUSINESS

• CHALLENGES & OPPORTUNITIESCHALLENGES & OPPORTUNITIES

**

10.4

THE INTERNETTHE INTERNET

• BEGAN AS GOVERNMENT CONNECTION BEGAN AS GOVERNMENT CONNECTION OF UNIVERSITIESOF UNIVERSITIES

• INTERNET SERVICE PROVIDER (ISP): INTERNET SERVICE PROVIDER (ISP): organization connected to Internet, leases organization connected to Internet, leases temporary connections to subscriberstemporary connections to subscribers

• NO ONE OWNS IT, NO FORMAL NO ONE OWNS IT, NO FORMAL ORGANIZATIONORGANIZATION

**

10.5

INTERNET CAPABILITIESINTERNET CAPABILITIES

• E -MAIL:E -MAIL: person -to-person messaging; person -to-person messaging; document sharingdocument sharing

• USERNET NEWSGROUPS:USERNET NEWSGROUPS: electronic bulletin electronic bulletin boards for discussion groupsboards for discussion groups

• LISTSERVs:LISTSERVs: e-mail list servers for discussion e-mail list servers for discussion groupsgroups

• CHATTING:CHATTING: interactive conversationsinteractive conversations• TELNET:TELNET: log on one computer, work on anotherlog on one computer, work on another• FTP:FTP: transfer files from computer to computertransfer files from computer to computer• GOPHERS:GOPHERS: use menus to locate text materialuse menus to locate text material

**

10.6

INTERNET ADDRESSINTERNET ADDRESS

10.7

http://www.prenhall.com/laudon

PROTOCOL FOR THE PROTOCOL FOR THE WEBWEB

HOST HOST COMPUTERCOMPUTER DIRECTORYDIRECTORY

EXTENSIONEXTENSION

DOMAIN NAME

INTERNET TERMSINTERNET TERMS

• HOME PAGE:HOME PAGE: WWW screen display WWW screen display welcomes user to organization’s pagewelcomes user to organization’s page

• WEBMASTER:WEBMASTER: person in charge of Web person in charge of Web sitesite

• UNIFORM RESOURCE LOCATOR (URL):UNIFORM RESOURCE LOCATOR (URL): address of specific Internet resourceaddress of specific Internet resource

**

10.8

INTERNET TERMSINTERNET TERMS

• HYPERTEXT TRANSPORTHYPERTEXT TRANSPORT PROTOCOL (http):PROTOCOL (http): communications communications standard used to transfer Web pagesstandard used to transfer Web pages

• HYPERTEXT MARKUP LANGUAGE HYPERTEXT MARKUP LANGUAGE (HTML):(HTML): popular programming popular programming language for creating Web siteslanguage for creating Web sites

**

10.9

SURFING THE NETSURFING THE NET

• SEARCH ENGINE:SEARCH ENGINE: tool for locating tool for locating specific sites or information on WWWspecific sites or information on WWW

• PORTAL:PORTAL: point of entry to WWW point of entry to WWW

• ““PUSH” TECHNOLOGY:PUSH” TECHNOLOGY: server streams server streams relevant content to browserrelevant content to browser

• MULTICASTING:MULTICASTING: sending data to select sending data to select groupgroup

**

10.10

INTRANETINTRANET

• INTERNAL NETWORKINTERNAL NETWORK• WWW TECHNOLOGYWWW TECHNOLOGY• FIREWALL:FIREWALL: Security System to Prevent Security System to Prevent

Invasion of Private NetworksInvasion of Private Networks• OVERCOMES COMPUTER PLATFORM OVERCOMES COMPUTER PLATFORM

DIFFERENCESDIFFERENCES• OFTEN INSTALLED ON EXISTING OFTEN INSTALLED ON EXISTING

NETWORK INFRASTRUCTURENETWORK INFRASTRUCTURE

**10.11

EXTRANETEXTRANET

ALLOWS SELECT USERS OUTSIDE ALLOWS SELECT USERS OUTSIDE ORGANIZATION TO USE ITS ORGANIZATION TO USE ITS

INTRANET:INTRANET:

• CUSTOMERSCUSTOMERS

• BUSINESS PARTNERSBUSINESS PARTNERS

• VENDORSVENDORS

**10.12

EXTRANETEXTRANET

10.13

INTERNET

CUSTOMER

SUPPLIER FIREWALL

DATABASES

SERVER

CLIENTS

BUSINESSPARTNER

INTERNET BENEFITSINTERNET BENEFITS

• GLOBAL CONNECTIVITYGLOBAL CONNECTIVITY• REDUCED COMMUNICATIONS COSTREDUCED COMMUNICATIONS COST• LOWER TRANSACTION COSTSLOWER TRANSACTION COSTS• REDUCED AGENCY COSTSREDUCED AGENCY COSTS• INTERACTIVITY, FLEXIBILITY, INTERACTIVITY, FLEXIBILITY,

CUSTOMIZATIONCUSTOMIZATION• ACCELERATED KNOWLEDGEACCELERATED KNOWLEDGE

**10.14

INTERNET & ELECTRONIC INTERNET & ELECTRONIC COMMERCECOMMERCE

• EASY TO LINK WITH OTHER EASY TO LINK WITH OTHER BUSINESSES, CUSTOMERSBUSINESSES, CUSTOMERS

• CAN UPDATE PRODUCT CAN UPDATE PRODUCT INFORMATION, ORDERING, INFORMATION, ORDERING, CUSTOMER SUPPORTCUSTOMER SUPPORT

• ON-LINE STOREFRONTSON-LINE STOREFRONTS

• ENHANCED BUSINESS FORMSENHANCED BUSINESS FORMS

**10.15

INTERNET & ELECTRONIC INTERNET & ELECTRONIC COMMERCECOMMERCE

• CUSTOMER-CENTERED RETAILINGCUSTOMER-CENTERED RETAILING– DISINTERMEDIATION: removal of

intermediate layers streamlines process– REDUCED COST TO BUYER, SELLER

• HIT:HIT: each request for a file recorded each request for a file recorded in log filein log file

**10.16

INTERNET BUSINESS MODELSINTERNET BUSINESS MODELS

• VIRTUAL STOREFRONT:VIRTUAL STOREFRONT: sells goods, sells goods, services on-lineservices on-line

• MARKETPLACE CONCENTRATOR:MARKETPLACE CONCENTRATOR: concentrates information from several concentrates information from several providersproviders

• INFORMATION BROKER:INFORMATION BROKER: provides provides product, pricing, availability informationproduct, pricing, availability information

**

10.17

INTERNET BUSINESS MODELSINTERNET BUSINESS MODELS

• TRANSACTION BROKER:TRANSACTION BROKER: buyers buyers view rates, terms from various sourcesview rates, terms from various sources

• ELECTRONIC CLEARINGHOUSE:ELECTRONIC CLEARINGHOUSE: auction-like setting, products, prices, auction-like setting, products, prices, change in response to demand change in response to demand

• REVERSE AUCTION:REVERSE AUCTION: buyer sets price, buyer sets price, submits to multiple sellerssubmits to multiple sellers

**

10.18

INTERNET BUSINESS MODELSINTERNET BUSINESS MODELS• DIGITAL PRODUCT DELIVERY:DIGITAL PRODUCT DELIVERY: sell, sell,

download software, other download software, other digital productsdigital products• CONTENT PROVIDER:CONTENT PROVIDER: creates revenue creates revenue

through providing client for a fee, and through providing client for a fee, and advertisingadvertising

• ON-LINE SERVICE PROVIDER:ON-LINE SERVICE PROVIDER: provides provides service, support for hardware, software service, support for hardware, software productsproducts

**

10.19

ELECTRONIC COMMERCE ELECTRONIC COMMERCE SUPPORT SYSTEMSSUPPORT SYSTEMS

• WEB HOSTING SERVICES:WEB HOSTING SERVICES: provides provides large servers for Web sites of fee-large servers for Web sites of fee-paying customerpaying customer

• ELECTRONIC PAYMENT SYSTEM:ELECTRONIC PAYMENT SYSTEM: using Web for electronic funds using Web for electronic funds transfers, credit , smart & debit cardstransfers, credit , smart & debit cards

**

10.20

INTRANETS AND INTRANETS AND ELECTRONIC BUSINESSELECTRONIC BUSINESS

• ELECTRONIC COMMERCE SERVERSELECTRONIC COMMERCE SERVERS

• BENEFITSBENEFITS

• GROUP COLLABORATIONGROUP COLLABORATION

• FUNCTIONAL APPLICATIONSFUNCTIONAL APPLICATIONS

• SUPPLY CHAIN MANAGEMENTSUPPLY CHAIN MANAGEMENT

**

10.21

ELECTRONIC COMMERCE ELECTRONIC COMMERCE SERVERS:SERVERS:• ICAT:ICAT: on-line catalog shopping, order on-line catalog shopping, order

placement (Icat)placement (Icat)

• NET.COMMERCE:NET.COMMERCE: merchant server merchant server supporting Secure Electronic supporting Secure Electronic Transactions protocol (IBM)Transactions protocol (IBM)

• MerchantXpert::MerchantXpert:: search tools, order search tools, order management, tax, payment, logistics management, tax, payment, logistics modules (Netscape)modules (Netscape)

**10.22

ELECTRONIC COMMERCE ELECTRONIC COMMERCE SERVICES:SERVICES:• OPEN MARKET TRANSACT:OPEN MARKET TRANSACT: customer customer

authentication, order & payment authentication, order & payment processing, tax, multi-language processing, tax, multi-language customer service (Open Market)customer service (Open Market)

• INTERNET COMMERCE SERVER:INTERNET COMMERCE SERVER: integrates orders, inventory, customer integrates orders, inventory, customer service, payments (Oracle)service, payments (Oracle)

**

10.23

BENEFITS OF INTRANETS:BENEFITS OF INTRANETS:

• CONNECTIVITYCONNECTIVITY

• CAN BE TIED TO LEGACY SYSTEM & CAN BE TIED TO LEGACY SYSTEM & TRANSACTION PROCESSINGTRANSACTION PROCESSING

• INTERACTIVE APPLICATIONS WITH INTERACTIVE APPLICATIONS WITH TEXT, AUDIO, VIDEOTEXT, AUDIO, VIDEO

• SCALABLE TO LARGER OR SCALABLE TO LARGER OR SMALLER SYSTEMS AS REQUIREDSMALLER SYSTEMS AS REQUIRED

**10.24

BENEFITS OF INTRANETS:BENEFITS OF INTRANETS:

• EASY TO USE BROWSER INTERFACEEASY TO USE BROWSER INTERFACE

• LOW START-UP COSTSLOW START-UP COSTS

• RICH, RESPONSIVE INFORMATION RICH, RESPONSIVE INFORMATION ENVIRONMENTENVIRONMENT

• REDUCED INFORMATION REDUCED INFORMATION DISTRIBUTION COSTSDISTRIBUTION COSTS

**

10.25

GROUP COLLABORATION:GROUP COLLABORATION:

• TEAMWARE:TEAMWARE: intranet-based applications intranet-based applications allow teams to share ideas, documents, allow teams to share ideas, documents, brainstorming, scheduling. Similar to chat brainstorming, scheduling. Similar to chat room.room.

• INTERNAL NEWSLETTERINTERNAL NEWSLETTER• ABILITY TO WORK AT HOMEABILITY TO WORK AT HOME• SHARE INTERNET DISCOVERIES WITH SHARE INTERNET DISCOVERIES WITH

COLLEAGUESCOLLEAGUES

**10.26

FUNCTIONAL APPLICATIONS:FUNCTIONAL APPLICATIONS:

• FINANCE & ACCOUNTINGFINANCE & ACCOUNTING

• HUMAN RESOURCESHUMAN RESOURCES

• SALES & MARKETINGSALES & MARKETING

• MANUFACTURING & PRODUCTIONMANUFACTURING & PRODUCTION

**

10.27

FINANCE & ACCOUNTING:FINANCE & ACCOUNTING:

• GENERAL LEDGER REPORTINGGENERAL LEDGER REPORTING

• PROJECT COSTINGPROJECT COSTING

• ANNUAL REPORTSANNUAL REPORTS

• BUDGETINGBUDGETING

**

10.28

HUMAN RESOURCES:HUMAN RESOURCES:

• CORPORATE POLICIESCORPORATE POLICIES

• EMPLOYEE SAVINGS PLANSEMPLOYEE SAVINGS PLANS

• BENEFITS ENROLLMENTBENEFITS ENROLLMENT

• ON-LINE TRAININGON-LINE TRAINING

• JOB POSTINGJOB POSTING

**

10.29

SALES & MARKETING:SALES & MARKETING:

• COMPETITOR ANALYSISCOMPETITOR ANALYSIS

• PRICE UPDATESPRICE UPDATES

• PROMOTIONAL CAMPAIGNSPROMOTIONAL CAMPAIGNS

• SALES PRESENTATIONSSALES PRESENTATIONS

• SALES CONTRACTSSALES CONTRACTS

**

10.30

MANUFACTURING & PRODUCTIONMANUFACTURING & PRODUCTION::

• QUALITY MEASUREMENTSQUALITY MEASUREMENTS

• MAINTENANCE SCHEDULESMAINTENANCE SCHEDULES

• DESIGN SPECIFICATIONSDESIGN SPECIFICATIONS

• MACHINE OUTPUTMACHINE OUTPUT

• ORDER TRACKINGORDER TRACKING

**

10.31

SUPPLY-CHAIN MANAGEMENTSUPPLY-CHAIN MANAGEMENT

INTRANETINTRANET

PRODUCTIONPLANNING

PROCUREMENT

INVENTORY

PRODUCTION &MANUFACTURING

CUSTOMERSERVICE

ACCOUNTING &FINANCE

MARKETING& SALES

SHIPPING &DISTRIBUTION

CU

ST

OM

ER

S

10.32

CHALLENGES & OPPORTUNITIESCHALLENGES & OPPORTUNITIES

• UNPROVEN BUSINESS MODELSUNPROVEN BUSINESS MODELS• BUSINESS PROCESS CHANGE BUSINESS PROCESS CHANGE

REQUIREMENTSREQUIREMENTS• CHANNEL CONFLICTSCHANNEL CONFLICTS• TECHNOLOGY HURDLESTECHNOLOGY HURDLES• LEGAL ISSUESLEGAL ISSUES• SECURITY & PRIVACYSECURITY & PRIVACY

**10.33

Connect to the INTERNETConnect to the INTERNET

PRESS LEFT MOUSE BUTTON ON ICON TO CONNECT TO THE LAUDON & LAUDON

WEB SITE FOR MORE INFORMATION ON THIS CHAPTER

10.34

10.35