e-Business and e-CommerceFOR

MANAGERS

Deitel Books, Cyber Classrooms and Complete Training Coursespublished by

Prentice HallFor Managers Series e-Business and e-Commerce for Managers How to Program Series e-Business and e-Commerce How to Program Internet and World Wide Web How to Program Visual Basic 6 How to Program XML How to Program Perl How to Program Java How to Program, 3/E C How to Program, 3/E C++ How to Program, 3/E Multimedia Cyber Classroom Series e-Business and e-Commerce Multimedia Cyber Classroom Internet and World Wide Web Multimedia Cyber Classroom Visual Basic 6 Multimedia Cyber Classroom XML Multimedia Cyber Classroom Perl Multimedia Cyber Classroom Java Multimedia Cyber Classroom, 3/E C++ Multimedia Cyber Classroom, 3/E The Complete Training Course Series The Complete e-Business and e-Commerce Programming Training Course The Complete Internet and World Wide Web Programming Training Course The Complete Visual Basic 6 Training Course The Complete XML Training Course The Complete Perl Training Course The Complete Java 2 Training Course, 3/E The Complete C++ Training Course, 3/E Visual Studio Series Visual Basic 6 How to Program Getting Started with Microsoft Visual C++ 6 with an Introduction to MFC Getting Started with Microsoft Visual J++ 1.1 For continuing updates on Prentice Hall and Deitel & Associates, Inc. publications visit the Prentice Hall Web site www.prenhall.com/deitel To communicate with the authors, send email to: deitel@deitel.com For information on corporate on-site seminars and public seminars offered by Deitel & Associates, Inc. worldwide, visit: www.deitel.com

e-Business and e-CommerceFOR MANAGERSH. M. Deitel P. J. Deitel

Deitel & Associates, Inc.

Deitel & Associates, Inc.

K. Steinbuhler

Deitel & Associates, Inc.

PRENTICE HALL Upper Saddle River, New Jersey 07458

Library of Congress Cataloging-in-Publication Data E-business and e-commerce for managers / H.M. Deitel, P.J. Deitel, K. Steinbuhler p. cm. Includes bibliographical references and index. ISBN 0-13-032364-0 1. Electronic Commerce. 2. Business enterprises--Computer networks--Management I. Title: E-business and e-commerce for managers. II. Deitel, Paul J. III. Steinbuhler, K. (Kate) IV. Title. HF5548.32 .D45 2000 658.84--dc21 00-051667 Vice President and Editorial Director, ECS: Marcia Horton Acquisitions Editor: Petra J. Recter Assistant Editor: Sarah Burrows Project Manager: Crissy Statuto Editorial Assistant: Karen Schultz Vice President of Production and Manufacturing, ESM: David W. Riccardi Executive Managing Editor: Vince OBrien Managing Editor: David A. George Senior Production Editor: Camille Trentacoste Production Editor: Penny Cox Director of Creative Services: Paul Belfanti Creative Director: Carole Anson Art Director: Heather Scott Chapter Opener and Cover Designer: Tamara Newnam Cavallo Manufacturing Manager: Trudy Pisciotti Manufacturing Buyer: Pat Brown Marketing Manager: Jennie Burger 2001 by Prentice-Hall, Inc. Upper Saddle River, New Jersey 07458 The authors and publisher of this book have used their best efforts in preparing this book. These efforts include the development, research, and testing of the theories and programs to determine their effectiveness. The authors and publisher make no warranty of any kind, expressed or implied, with regard to these programs or to the documentation contained in this book. The authors and publisher shall not be liable in any event for incidental or consequential damages in connection with, or arising out of, the furnishing, performance, or use of these programs. Many of the designations used by manufacturers and sellers to distinguish their products are claimed as trademarks and registered trademarks. Where those designations appear in this book, and Prentice Hall and the authors were aware of a trademark claim, the designations have been printed in initial caps or all caps. All product names mentioned remain trademarks or registered trademarks of their respective owners. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Printed in the United States of America 10 9 8 7 6 5 4 3 2 1

ISBN 0-13-032364-0Prentice-Hall International (UK) Limited, London Prentice-Hall of Australia Pty. Limited, Sydney Prentice-Hall Canada Inc., Toronto Prentice-Hall Hispanoamericana, S.A., Mexico Prentice-Hall of India Private Limited, New Delhi Prentice-Hall of Japan, Inc., Tokyo Pearson Education Asia Pte. Ltd., Singapore Editora Prentice-Hall do Brasil, Ltda., Rio de Janeiro

To Michael M. Tulman: Thank you for your love of business, and for your love of teaching and writing that you shared with us. We dedicate this book to you, our friend and mentor, to whom we owe our teaching and writing careers. Harvey and Paul Deitel To my parents for their love, innite patience and support. Kate Steinbuhler

Contents

Preface

xxvii

Part 1 Introduction1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8

1

Introduction: Transitioning to the Web History of the Internet History of the World Wide Web Internet and World Wide Web Development e-Business and e-Commerce Overview A Word of Caution Tour of the Book Internet and World Wide Web Resources

Introduction to e-Business and e-Commerce

3 5 6 7 7 12 12 20

2

Part 2 Constructing an e-Business2.1 2.2

2

Introduction Storefront Model 2.2.1 Shopping-Cart Technology 2.2.2 Online Shopping Malls

e-Business Models

2728 28 29 31

Contents

VII

2.3 2.4 2.5

2.6 2.7 2.8

Auction Model Portal Model Dynamic-Pricing Models 2.5.1 Name-Your-Price Model 2.5.2 Comparison-Pricing Model 2.5.3 Demand-Sensitive Pricing Model 2.5.4 Bartering Model 2.5.5 Rebates 2.5.6 Offering Free Products and Services B2B E-Commerce and EDI Click-and-Mortar Businesses Internet and World Wide Web Resources

32 35 37 38 39 40 40 40 40 41 44 46

33.1 3.2

3.3

3.4

3.5

Introduction Getting Started 3.2.1 Generating e-Business Ideas 3.2.2 Growth of e-Business: Evaluating Risk 3.2.3 Finding Funding and Going Public Putting Your Plan Into Action 3.3.1 Choosing a Domain Name 3.3.2 Supply-Chain Management: Distributors, Vendors and Shipment Providers61 3.3.3 Web-Site Hosting 3.3.4 Web Design 3.3.5 Enhancing the User Experience 3.3.6 Protecting Your e-Business 3.3.7 Streaming Media: How Much Is Too Much? 3.3.8 Preparing for New Technologies e-Business Solutions 3.4.1 End-to-End e-Business Solutions 3.4.2 Other e-Business Solutions 3.4.3 Maintaining and Monitoring Your Web Site 3.4.4 e-Commerce Consulting Internet and World Wide Web Resources

Building an e-Business: Design, Development and Management

54

55 56 56 57 57 60 60

62 67 69 72 73 73 73 74 76 77 79 80

4

4.1 4.2 4.3 4.4 4.5 4.6

Online Monetary Transactions

Introduction Credit-Card Transactions 4.2.1 Anatomy of an Online Credit-Card Transaction 4.2.2 Credit-Card Transaction Enablers Online Credit-Card Fraud Digital Currency e-Wallets Alternate Consumer Payment Options

91

92 92 94 95 96 97 98 99

VIII

Contents

4.7 4.8 4.9 4.10 4.11 4.12 4.13

Peer-to-Peer Payments Smart Cards Micropayments Business-to-Business (B2B) Transactions e-Billing Developing Payment Standards Internet and World Wide Web Resources

100 101 102 104 108 111 112

Part 3 e-Business and e-Commerce55.1 5.2 5.3 Introduction Structure of the Internet Hardware 5.3.1 Servers 5.3.2 Communications Media 5.3.3 Storage Area Networks (SANs) Connecting to the Internet 5.4.1 Digital Subscriber Line (DSL) 5.4.2 Broadband 5.4.3 Integrated Services Digital Network (ISDN) 5.4.4 T-1 and T-3 Lines Internet2 Software 5.6.1 Application Service Providers (ASPs) 5.6.2 Databases Operating Systems 5.7.1 UNIX 5.7.2 Microsoft Windows 5.7.3 Linux 5.7.4 Mac OS X Enhancing Business Communication 5.8.1 Intranets and Extranets 5.8.2 Streaming Audio and Video 5.8.3 Internet Telephony 5.8.4 Webcasting and Web Conferencing Internet and World Wide Web Resources Introduction Wireless Devices m-Business Wireless Internet Access

Internet Hardware, Software and Communications

123124 125 125 126 126 127 127 128 130 130 130 131 131 131 132 133 133 134 135 136 138 138 138 139 140 141 152 152 153 156

5.4

5.5 5.6 5.7

5.8

5.9 6.1 6.2 6.3 6.4

6

Wireless Internet and m-Business

151

Contents

IX

6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12

Wireless Web Technology 6.5.1 Web Clipping 6.5.2 WAP and WML Software Applications for Wireless Devices Wireless Local Area Networks (WLANs) Bluetooth Wireless Communications Location Tracking 6.10.1 Global Positioning System (GPS) 6.10.2 E911 Act Future of Wireless Internet 6.11.1 Implications for Disabled People 6.11.2 Ultimate Wireless Device Internet and World Wide Web Resources Introduction Ancient Ciphers to Modern Cryptosystems Secret-key Cryptography Public-key Cryptography Key Agreement Protocols Key Management Digital Signatures Public-key Infrastructure, Certificates and Certification Authorities Cryptanalysis Security Protocols 7.10.1 Secure Sockets Layer (SSL) 7.10.2 Secure Electronic Transaction (SET) Security Attacks Network Security 7.12.1 Firewalls 7.12.2 Kerberos 7.12.3 Biometrics Steganography Internet and World Wide Web Resources

158 158 160 163 166 167 168 168 168 169 170 170 170 171

7

Internet Security

181

7.13 7.14

182 183 184 186 188 188 189 191 193 193 193 194 196 199 199 200 201 201 203

Part 4 Internet Marketing88.1 8.2 8.3 8.4

Internet Marketing

Introduction Branding Internet Ma\rketing Research e-Mail Marketing

218219 220 220 222

X

Contents

8.5 8.6

8.7 8.8 8.9 8.10 9.1 9.2 9.3

Promotions e-Business Advertising 8.6.1 Banner Advertising 8.6.2 Buying and Selling Banner Advertising 8.6.3 Media-Rich Advertising 8.6.4 Wireless Advertising e-Business Public Relations Business-to-Business (B2B) Marketing on the Web Search Engines 8.9.1 META Tags 8.9.2 Search-Engine Registration Internet and World Wide Web Resources Introduction How an Affiliate Program Works Selecting An Affiliate-Program Reward Structure 9.3.1 Pay-Per-Click Model 9.3.2 Pay-Per-Lead Model 9.3.3 Pay-Per-Sale Model 9.3.4 Multi-Tiered Model 9.3.5 Hybrid Model 9.3.6 CPM (Cost-Per-Thousand) Model Attracting Affiliates Monitoring An Affiliate Program Affiliate Solution Providers 9.6.1 Commission Junction 9.6.2 LinkShare 9.6.3 Be Free 9.6.4 ClickTrade 9.6.5 PlugInGo.com Web-site Stickiness Becoming an Affiliate Examples of Affiliate Programs Examples of Affiliate Programs by Industry Costs and Taxation of Affiliate Programs Affiliate-Program Directories and Search Engines Internet and World Wide Web Resources Introduction Tracking and Analyzing Data 10.2.1 Log-File Analysis 10.2.2 Data Mining 10.2.3 Customer Registration 10.2.4 Cookies

224 225 226 228 230 231 232 233 234 234 234 236

9

Affiliate Programs

246

9.4 9.5 9.6

9.7 9.8 9.9 9.10 9.11 9.12 9.13 10.1 10.2

247 248 248 249 249 249 249 250 250 251 251 252 252 253 254 254 256 256 257 260 261 265 265 266

10

e-Customer Relationship Management

272273 274 275 275 278 278

Contents

XI

10.3 10.4

10.5 10.6 10.7

Personalization 10.3.1 Intelligent Agents 10.3.2 Personalization vs. Privacy Contact Centers 10.4.1 Frequently Asked Questions (FAQs) 10.4.2 e-Mail 10.4.3 Online Text Chatting 10.4.4 Speech Synthesis and Recognition; Natural Language Processing 10.4.5 Voice Communications 10.4.6 Sales-Force Automation Business-to-Business e-CRM Complete e-CRM Solutions Internet and World Wide Web Resources

279 280 280 280 281 282 282 283 285 287 289 289 290

Part 5 Legal, Ethical, Social and Global Issues11.1 11.2

11

11.3

11.4 11.5 11.6

Introduction Legal Issues: Privacy on the Internet 11.2.1 Right to Privacy 11.2.2 Internet and the Right to Privacy 11.2.3 Network Advertising Initiative 11.2.4 Employer and Employee 11.2.5 Protecting Yourself as a User 11.2.6 Protecting Your Business: Privacy Issues Legal Issues: Other Areas of Concern 11.3.1 Defamation 11.3.2 Sexually Explicit Speech 11.3.3 Children and the Internet 11.3.4 Alternative Methods of Regulation 11.3.5 Intellectual Property: Copyright and Patents 11.3.6 Trademark and Domain Name Registration 11.3.7 Unsolicited Commercial e-Mail (Spam) 11.3.8 Online Auctions 11.3.9 Online Contracts 11.3.10 User Agreements Cybercrime Internet Taxation Internet And World Wide Web Resources

Legal and Ethical Issues; Internet Taxation

302303 303 304 304 306 307 309 310 311 312 313 314 315 316 320 321 322 323 323 324 324 327

12

12.1 12.2

Globalization

Introduction Regulating the Internet on an International Level

339

340 341

XII

Contents

12.2.1 Accounting for Legal and Cultural Differences 12.2.2 International Internet Regulations 12.3 Creating an e-Business with Global Capabilities 12.3.1 Choosing an International Market 12.3.2 Obtaining a Local Internet Address 12.3.3 Internationalization and Localization 12.3.4 Partnering and Hiring 12.3.5 Payment Systems 12.3.6 Distribution 12.3.7 Legal and Taxation Systems 12.3.8 Promotions 12.4 Canada 12.5 Mexico and Central and South America 12.6 Europe 12.7 Africa 12.8 Middle East 12.9 Asia 12.10 Australia 12.11 Future of Global e-Business 12.12 Internet and World Wide Web Resources

341 342 344 344 346 346 352 353 354 355 356 357 358 359 360 361 362 363 364 364

13

13.1 13.2

13.3 13.4 13.5

13.6 13.7 14.1 14.2 14.3 14.4 14.5

Introduction Health, Social Interaction and the Internet 13.2.1 Social Health 13.2.2 Children and the Internet Socio-Economic Segregation New Economic Workplace Online Communities 13.5.1 Online Communities: Defining the Difference 13.5.2 Communication Tools 13.5.3 Online Activism Online Charities and Non Profit Organizations on the Web Internet and World Wide Web Resources Introduction Web Accessibility Web Accessibility Initiative Providing Alternatives for Multimedia Content 14.4.1 Readability 14.4.2 Using Voice Synthesis and Recognition with VoiceXML Accessibility in Microsoft Windows 2000 14.5.1 Tools for Visually Impaired People 14.5.2 Tools for Hearing-Impaired People 14.5.3 Tools for Users Who Have Difficulty Using the Keyboard

Social and Political Issues

375

376 376 376 377 378 379 380 380 383 385 388 389

14

Accessibility

397

398 398 400 400 401 401 402 402 406 407

Contents

XIII

14.6 14.7

14.5.4 Microsoft Narrator 14.5.5 Microsoft On-Screen Keyboard 14.5.6 Accessibility Features in Microsoft Internet Explorer 5.0 Other Accessibility Tools Internet and World Wide Web Resources

411 413 413 415 417

Part 6 e-Business and e-Commerce Case Studies15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18

15

Introduction Retailing on the Web Medical Services Online; Health and Nutrition Online Travel Transportation and Shipping Online Automotive Sites Energy Online Selling Brainpower Online Online Art Dealers Online Grocery Stores Online Real Estate Online Legal Services Government Online Insurance Online Children Online Purchasing Event Tickets Online Genealogy Online Internet and World Wide Web Resources

Online Industries

424

425 425 426 428 429 431 432 434 435 436 437 441 442 443 444 446 447 447

16

16.1 16.2 16.3 16.4

16.5 16.6 16.7

Introduction Online Banking Services 16.2.1 Hybrid Banks 16.2.2 Internet-Only Banks Online Loans How the Web Is Changing the Investment Community 16.4.1 Electronic Communication Networks (ECNs) 16.4.2 Online Trading 16.4.3 Online Bond Trading Merging Financial Services Financial Aggregation Services Wireless Banking and Trading

Online Banking and Investing

455456 456 457 459 461 463 463 465 472 472 473 474

XIV

Contents

16.8 16.9

Financial Planning Online Internet and World Wide Web Resources

477 478

17

17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10

e-Learning

Introduction e-Learning Technologies and Infrastructure. e-Learning Overview E-Learning Solution Providers Training Marketplaces Information Technology (IT) Training Online Traditional Education Online Studying Online Educational Supplies and Resources Online Internet and World Wide Web Resources

489

490 491 492 493 495 495 499 501 503 503

18

18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12

e-Publishing

Introduction Electronic Publishing Self-Publishing Print on Demand e-Publishing: Related Hardware and Technologies 18.5.1 XrML 18.5.2 e-Books Online News Sources e-Zines and Online Magazines Future of e-Publishing Internet and World Wide Web Resources

511

512 512 515 518 519 519 520 521 521 523 525 531 532 533 534 534 536 537 537 538 540 541 542 544 545 545 545 547

19

Introduction Online Entertainment Entertainment and Technology MP3 and File-Transfer Technology Amateur and Independent Artist Opportunities Interactive Web TV Music and the Web Web Radio Sports on the Web Comedy on the Web Online Games Online Hollywood 19.12.1 Talent Scouting 19.12.2 Screen Writing 19.12.3 Distribution and Supplies 19.13 The Future of Entertainment 19.14 Internet and World Wide Web Resources

Online Entertainment

530

Contents

XV

20.1 20.2 20.3

20

20.4

20.5

Introduction Resources for the Job Seeker Online Opportunities for Employers 20.3.1 Posting Jobs Online 20.3.2 Problems with Recruiting on the Web 20.3.3 Diversity in the Workplace 20.3.4 Recruiting Services 20.3.5 Testing Potential Employees Online Career Sites 20.4.1 Comprehensive Career Sites 20.4.2 Technical Positions 20.4.3 Contracting Online 20.4.4 Executive Positions 20.4.5 Students and Young Professionals 20.4.6 Other Online Career Services Internet and World Wide Web Resources

Online Career Services

553554 555 556 558 560 560 562 563 563 564 565 566 567 568 569 569

Part 7 AppendicesA.1

A

Introduction to the Internet Explorer 5.5 Web Browser A.1.1 Connecting to the Internet A.1.2 Features of Internet Explorer 5.5 A.1.3 File Transfer Protocol (FTP) A.1.4 Outlook Express and Electronic Mail A.1.5 Outlook Express and Newsgroups A.1.6 NetMeeting and MSN Messenger Service A.1.7 Controlling the Details

Microsoft Internet Explorer 5.5

578579 579 580 583 585 589 591 594

B.1 B.2 B.3

B Building an e-Business: Internet and Web Programming

B.4

Introduction Problem Statement ThreeTier Architecture B.3.1 Top Tier: The User Interface B.3.2 Middle Tier: Business Processes (The Server) B.3.3 Bottom Tier: Database Introduction to the Bug2Bug.com Bookstore

599

600 600 600 601 601 602 602

XVI

Contents

CC.1 C.2 C.3 C.4 C.5 C.6 C.7 C.8 C.9 C.10 C.11 D.1 D.2 D.3 D.4 D.5 D.6

Introduction Markup Languages Editing HTML Common Tags Headers Text Styling Linking Images Formatting Text With Special Characters, Horizontal Rules and More Line Breaks Internet and WWW Resources

Introduction to HyperText Markup Language 4 (HTML 4)

614

615 615 616 617 619 620 622 625 629 631 634 640 640 643 646 649 655 661 661 661 665 666

D

Intermediate HTML 4

Introduction Basic HTML Tables Intermediate HTML Tables and Formatting Basic HTML Forms More Complex HTML Forms Internet and WWW Resources Introduction Introduction to HTML Introduction to ASP Introduction to XML Introduction to JavaScript

639

E

E.1 E.2 E.3 E.4 E.5

Introduction to HTML, ASP, XML and JavaScript Syntax660

F

F.1 F.2 F.3

The Client Tier: The User InterfaceThe Client Tier HTML XML and XSL

672673 674 679

G.1 G.2 G.3 G.4 H.1 H.2 H.3

G

The Middle Tier: Business ProcessesIntroduction Active Server Pages (ASP) Adding and Viewing Cart contents Check Out

685686 686 701 707 723 723 723

H

The Bottom Tier: The DatabaseIntroduction Bottom Tier: Database Access Database

722

Contents

XVII

I

I.1 I.2 I.3 I.4 I.5 I.6 I.7 7.6

Accessibility Programming

Introduction Providing Alternatives for Multimedia Content Maximizing Readability by Focusing on Structure Accessibility in HTML Tables Accessibility in HTML Frames Accessibility in XML Using Voice Synthesis and Recognition with VoiceXML Internet and World Wide Web Resources

725

726 726 729 729 733 733 734 741

J K

Installing a Web Server Setting Up a Microsoft ODBC Data Source Glossary Index

746 747 748 770

Illustrations

Part 1 Introduction1.1 1.2 1.3

1

Works cited. Campusfood.com home page. (Courtesy of Campusfood.com, Inc.) Growth on the Internet. (Courtesy of Jupiter Research, Spring 2000.)

Introduction to e-Business and e-Commerce

4 9 10

Part 2 Constructing an e-Business22.1 2.2 2.3 2.4 eBay home page. (These materials have been reproduced by Prentice Hall with the permission of eBay, Inc. COPYRIGHT EBAY, INC. ALL RIGHTS RESERVED.) 33 Placing a bid on eBay. (These materials have been reproduced by Prentice Hall with the permission of eBay, Inc. COPYRIGHT EBAY, INC. ALL RIGHTS RESERVED.) 34 Customers have the benefit of comparison shopping at Yahoo! Shopping. (Reproduced with Permission of Yahoo! by Yahoo! Inc. YAHOO! and the YAHOO! logo are trademarks of Yahoo! Inc.) 37 A sampling of B2B exchange sites by industry. (Reprinted by Permission of Forbes Magazine 2000 Forbes 2000.) 44

e-Business Models

Illustrations

XIX

33.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15

Building an e-Business: Design, Development and ManagementBusiness plan overview. Rare Mediums incubation methodology. (Courtesy of Rare Medium.) e-Commerce based shipping options. GoCargo.com shipping bid. (Courtesy of GoCargo.com.) Web-site hosts. Websiteforfree.coms Web-site design. (Courtesy of WebsiteforFREE.com.) Homestead site tour. (Courtesy of Homestead.com Incorporated. All Rights Reserved.) ImagePump zoom technology. (Courtesy of Xippix, Inc.) Enhanced view with the Magnifier. (Courtesy of Xippix, Inc.) MyEvents.com calendar feature. (Courtesy of MyEvents.) MyEvents.com contacts feature. (Courtesy of MyEvents.) Secure Assures example Privacy Profile. (Courtesy of Secure Assure, LLC.) Other e-business solution providers. Holistix Web Manager. (Courtesy of Holitix, Inc.) e-Business consulting companies

57 59 62 63 63 67 68 70 70 71 71 72 75 78 79 94 96 98 100 103 106 107 109

4

4.1 4.2 4.3 4.4 4.6 4.7 4.8 4.9

Basic steps in an online credit-card transaction. CyberCash FraudPatrol. (Courtesy of CyberCash Inc. CyberCash is a trademark or registered trademark of CyberCash Inc., in the United States and other countries.) Using eCash on the Web. (Courtesy of eCash Technologies, Inc. and 2000 eCash.) EntryPoint Internet Toolbar. (Courtesy of EntryPoint Incorporated.) QPass transaction process. (Courtesy of QPass, Inc.) TradeCard contract. (Courtesy of TradeCard Inc.) Clareon online transaction service. (All Rights Reserved, Clareon Corporation 2000.) PAYTRU$T SmartBalance screen shot. (Courtesy of Paytrust, Inc.)

Online Monetary Transactions

Part 3 e-Business and e-Commerce55.1 5.2 5.3 5.4

Internet Hardware, Software and CommunicationsInternet connection comparison chart. (Courtesy of GLINK, LLC.) Internet Service Providers (ISPs) that offer free Internet access. Table of a relational database. Popular Linux vendors.

128 129 133 137

XX

Illustrations

5.5

RealPlayer dialog. (Copyright 1995-2000 RealNetworks, Inc. All Rights Reserved. RealNetworks, Real.com, RealPlayer are trademarks or registered trademarks of RealNetworks, Inc.) BlackBerry home page. (Courtesy of Research In Motion Limited. The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties of, and trademarks of Research In Motion Limited, used by permission.) Palm Web clipping applications library. (Courtesy of Palm, Inc.) Palm VII handheld. (Courtesy of Palm, Inc.) Rendering a WML document using Nokias browser. ( 2000 Nokia Mobile Phones.) Microsoft Pocket PC devices. (Courtesy of Microsoft Corporation, Casio Computer Co., Ltd., Compaq Corporation, Hewlett Packard and Symbol Technologies, Inc.) Microsofts Pocket Internet Explorer. (Courtesy of Microsoft Corporation and Compaq Corporation.) Demo of a video delivered to a wireless device using PacketVideo. (Courtesy of PacketVideo Corporation.) Encrypting and decrypting a message using a symmetric secret key. Distributing a session key with a key distribution center. Encrypting and decrypting a message using public-key cryptography. Authentication with a public-key algorithm Creating a digital envelope. A portion of the VeriSign digital certificate. (Courtesy of VeriSign, Inc.) Example of a conventional watermark. (Courtesy of Blue Spike, Inc.) An example of steganography: Blue Spikes Giovanni digital watermarking process. (Courtesy of Blue Spike, Inc.)

139

6.1

6

Wireless Internet and m-Business

6.2 6.3 6.5 6.6 6.7 6.8

154 159 160 162 164 165 166 184 185 187 188 189 191 202 203

7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8

7

Internet Security

Part 4 Internet Marketing8.1 8.2 8.3 8.4 9.1

8

Banner advertisements. (Courtesy of GaryCohn.com Marketing.) Example of a panel ad. (Courtesy of Venture Capital Online, Inc.) ValueClicks home page. (Courtesy of ValueClick, Inc.) Search engines and their registration processes.

Internet Marketing

218

226 227 229 235 248

9

Affiliate Programs

Affiliate-program operation for a program that pays commissions on sales.

Illustrations

XXI

9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10

Diagram of a two-tiered affiliate-program model. LinkShares home page. (Courtesy of LinkShare Corporation.) Be Frees performance-marketing page for merchants. (Courtesy of Be Free, Inc.) Be Free demonstration: How promotions work, step 1. (Courtesy of Be Free, Inc.) Sample store from vstore.com. (Courtesy of Vcommerce Corporation.) Adbilitys specific segments within an industry. (Courtesy of Adbility.com.) Adbilitys listing of affiliate programs for books in the general segment. (Courtesy of Adbility.com.) Companies that use affiliate programs. Associate-It home page (Courtesy of iSeed Inc.) WebTrends home page. (Courtesy of 2000 WebTrends Corporation. All rights reserved. WebTrends is a registered trademark of WebTrends Corporation.) Example analysis from a WebTrends product. (Courtesy of 2000 WebTrends Corporation. All rights reserved. WebTrends is a registered trademark of WebTrends Corporation.) CLICKiCHATs online text chatting. (Courtesy of StartCall Corporation.) Ask Jeeves home page with a sample query. (Courtesy of Ask Jeeves, Inc.) Ask Jeeves results page from sample query. (Courtesy of Ask Jeeves, Inc.) RealCall Alert Demonstration. (Courtesy of RealCall, Inc.)

250 253 255 255 258 259 260 262 266

10

10.1 10.2 10.3 10.4 10.5 10.6

e-Customer Relationship Management

276 277 284 285 286 288

Part 5 Legal, Ethical, Social and Global Issues11.1 11.2 11.3 11.4

11

PrivacyBot.com. (Courtesy of Invisible Hand Software, LLC.) Net Nanny home page. (Courtesy of Net Nanny Software International Inc.) FTC dummy site for NordiCaLite. (Courtesy of Federal Trade Commission.) FTC warning page. (Courtesy of Federal Trade Commission.) Type of information found at Global Reachs Web site. (Courtesy of Global Reach.) Logos dictionary query page with sample query. (Courtesy of Logos Group, Italy.) Logos query results page with sample query result. (Courtesy of Logos Group, Italy.)

Legal and Ethical Issues; Internet Taxation

311 315 325 326

12

12.1 12.2 12.3

Globalization

345 347 348

XXII

Illustrations

12.4 12.5 12.6 12.7 12.8 12.9 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22

Aquarius.net translator search. (Courtesy of Language Networks BV.) eBays Chinatown site uses a red background signifying celebration and good luck. (These materials have been reproduced with the permission of eBay Inc. COPYRIGHT EBAY INC. ALL RIGHTS RESERVED.) Various America Online icons. (AOL screenshots copyright 2000 America Online, Inc. Used with permission.) First Tuesday provides jobs in the European Information Technology market. (Courtesy of First Tuesday, Ltd.) Africa Online Ghana site. (Courtesy of Africa Online, Inc.) Australias InFARMation (Courtesy of inFARMation.com.au.) Ethnic Web communities. Interest-based online communities Sample of gender-specific sites on the Internet. Person-to-person and conference calls through Firetalk. (Courtesy of FireTalk Communications, Inc.) Firetalks Instant Messaging interface. (Courtesy of FireTalk Communications, Inc.) Firetalk Web-based tour. (Courtesy of FireTalk Communications, Inc.) YouthActivism home page. (Courtesy of Activism Project 2000.) Non-profit organizations online. Acts designed to protect access to the Internet for people with disabilities. We Media home page. (Courtesy of We Media Inc.) Text Size dialog. Display Settings dialog. Accessibility Wizard initialization options. Scroll Bar and Window Border Size dialog. Setting window element sizes. Display Color Settings options. Accessibility Wizard mouse cursor adjustment tool. SoundSentry dialog. Show Sounds dialog. StickyKeys dialog. BounceKeys dialog. ToggleKeys dialog. Extra Keyboard Help dialog. MouseKeys window. Mouse Button Settings window. Mouse Speed dialog. Set Automatic Timeouts. Saving new accessibility settings with the Save Settings to File dialog. Narrator window. Narrator reading Notepad text.

349 350 351 353 361 363 381 381 382 384 384 385 386 388 399 399 403 403 404 404 405 405 406 406 407 408 408 409 409 410 410 411 411 412 412 413

13

Social and Political Issues

14

Accessibility

Illustrations

XXIII

14.23 14.24 14.25 14.26

Microsoft On-Screen Keyboard. Microsoft Internet Explorer 5.0s Accessibility options. Advanced accessibility settings in Microsoft Internet Explorer 5.0. Accessing the Text Size menu in Microsoft Internet Explorer 5.0.

414 414 415 415

Part 6 e-Business and e-Commerce Case Studies1515.1 15.2 15.3 15.4 15.5 15.6 15.7 WebMD Home page (Copyright 2000 WebMD Corporation. Reprinted with permission.)427 Travelocity Home page. (Courtesy of Travelocity.) 431 Webvan Home page. (Courtesy of Webvan Group, Inc.) 437 Apartments.com can help you find an apartment. (Courtesy of Apartments.com.) 440 The CyberSettle Home Page (Courtesy of Cybersettle.com) 442 ebix.com Home page (Courtesy of ebix.com, Inc.). 445 Ticketmaster.com Home page. (Used under permission of Ticketmaster Online-CitySearch, Inc.) 446

Online Industries

Internet-only banks and online banking information sites. E-LOANs E-TRACK demo. (Courtesy of E-LOAN, Inc.) Archipelago order routing and execution example. (Courtesy of Archipelago Holdings, L.L.C.) 16.4 E*TRADE offers investing and financial services. (Courtesy of E*TRADE Securities, Inc.) 16.5 Dollar-based investing through ShareBuilder. (Courtesy of Netstock Corporation.) 16.6 ShareBuilder example of sample investments. (Courtesy of Netstock Corporation.) 16.7 Online Brokerages. 16.8 Tradebonds.coms zero coupon bond query. (Courtesy of Tradebonds.com.) 16.9 Example of Yodlees service through Citibanks myciti. (Courtesy of Yodlee, Inc.) 16.10 Example of Yodlees charting capability. (Courtesy of Yodlee, Inc.) 17.1 17.2 17.3

16.1 16.2 16.3

16

Online Banking and Investing

460 462 465 467 469 469 470 473 475 476 490 494 496

17

e-Learning SWOT analysis. e-learning solution providers. Online IT training.

e-Learning

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Illustrations

17.4 17.5 17.6 17.7 17.8

Quisic Corporate Programs. (Courtesy of Quisic. All Rights Reserved.) PreMBA Course Outline. (Courtesy of Quisic. All Rights Reserved.) Graduate and professional degrees available online. Examples of online ventures by college and universities. Tutor.coms whiteboard. (Courtesy of tutor.com, Inc.) Analysis of e-publishing. Steven King self published his second e-Book, The Plant. (Courtesy of Stephen King.) Mightywords gives authors a chance to publish their works online. (Courtesy of MightyWords.com, Inc.) eBook is one of many electronic book readers available. (Courtesy of Gemstar-TV Guide International.) E Ink is made up of microcapsules. (Courtesy of E Ink Corporation - October 2000.) Entertainment activities have varied among online adults in the summer of 2000. Note: chat data reflects the period beginning 30 days prior to initial publication. All other data reflects the three month period prior to publication.3 (Reprinted by permission of The Industry Standard.) Superhero Roommate is just one of many original series at icebox.com.(Courtesy of Icebox, Inc.) WindowsMedia.com allows you to find your favorite radio station. (Courtesy of FNX Radio Network and Microsoft Corporation). You never know what to expect at the Onion.com. (Courtesy of Onion, Inc.) The Hollywood Stock Exchange. (Courtesy of the Hollywood Stock Exchange. Copyright 1996-2000. All Rights Reserved.) The Inside.com home page. (Courtesy of Powerful Media Inc./Inside.com.)

497 498 500 501 502 514 516 517 520 524

18

18.1 18.2 18.3 18.4 18.5

e-Publishing

19

19.1

Online Entertainment

19.2 19.3 19.4 19.5 19.6

533 535 539 540 542 544

20

20.1 20.2 20.3 20.4 20.5 20.6 20.7

The Monster.com home page. (Courtesy of Monster.com.] FlipDog.com job search. (Courtesy of FlipDog.com.) List of a job seekers criteria. Career opportunities at BlackVoices. (Courtesy of BlackVoices.com.) Advantage Hiring, Inc.s Net-Interview service. (Courtesy of Advantage Hiring, Inc.) Cruel World online career services. (Courtesy of Cruel World, Inc.) eLance.com request for proposal (RFP) example. (Courtesy of eLance, Inc.]

Online Career Services

556 557 559 561 562 565 567

Illustrations

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Part 7 AppendicesA.1 A.2 A.3 A.4 A.5 A.6 A.7 A.8 A.9 A.10 A.11 A.12 A.13 A.14 A.15 A.16

A

Using the Internet Connection Wizard to get on the Internet. Deitel & Associates, Inc., Web site. (Courtesy of Deitel & Associates, Inc.) Capturing a picture from a Web site. (Courtesy of Pearson Education.) AutoComplete address-bar options. History options. (Courtesy of Pearson Education.) Using IE5.5 to access FTP sites. Outlook Express opening screen and the Internet Accounts dialog box. Adding e-mail and news accounts in Outlook Express. Outlook Express e-mail main screen. Adding and modifying names in your Address Book. E-mail message in Outlook Express. Using Outlook Express to browse newsgroups. Using NetMeeting to speak with people on the Internet. Chatting using MSN Messenger. Changing your Internet Options in IE5.5. (Courtesy of Pearson Education.) The Deitel Buzz newsletter, displayed with Adobe Acrobat. (Courtesy of Pearson Education.) Three-tier architecture for the Bug2Bug.com online bookstore. Technologies used by Bug2Bug.com and their descriptions. Bug2Bug.coms home page (Welcome.html). List of available books (books.asp). Visual Basic information page (book1.asp). Contents of the shopping cart (viewCart.asp). User attempting to submit order with empty field (order.html). User trying to submit order with State field empty (order.html). User attempting to check-out form with an invalid state abbreviation (order.html). Order confirmation (process.asp). Table of books on back order (backOrder.xml). Shopping cart documents and their interactions. Summary of Bug2Bug.coms documents. Basic HTML file. Header elements H1 through H6. Stylizing text on Web pages. Linking to other Web pages.

Microsoft Internet Explorer 5.5

580 581 582 583 584 585 586 587 588 589 590 591 592 593 594 596 601 603 604 605 605 606 607 608 609 610 610 611 611 617 619 621 623

B.1 B.2 B.3 B.4 B.5 B.6 B.7 B.8 B.9 B.10 B.11 B.12 B.13 C.1 C.2 C.3 C.4

B

Building an e-Business: Internet and Web Programming

C

Introduction to HyperText Markup Language 4 (HTML 4)

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Illustrations

C.5 C.6 C.7 C.8 C.9 C.10 D.1 D.2 D.3 D.4 D.5

Linking to an email address. Placing images in HTML files. Using images as link anchors. Using the FONT element to format text. Inserting special characters into HTML. Using horizontal rules.

624 625 627 629 631 632 640 643 646 650 652 661 662 663 664 665 665 666 667 669 673 674 677 680 681

D

Intermediate HTML 4

HTML table. A complex table with formatting and color. Simple form with basic fields and a text box. Form including textareas, password boxes and checkboxes. HTML form including radio buttons and pulldown lists.

E

E.1 E.2 E.3 E.4 E.5 E.6 E.7 E.8 E.9 F.1 F.2 F.3 F.4 F.5

Introduction to HTML, ASP, XML and JavaScript SyntaxEnter button of welcome.html. List of available books from books.asp. View of shopping cart contents from viewCart.asp. Some VBScript variant subtypes. Some VBScript functions. Listing of backOrder.xml HTML table created by values from backOrder.xml. A first program in JavaScript. Validation script and output windows from order.html.

F

The Client Tier: The User Interface

Bug2Bug.com documents presented in this appendix. Listing for welcome.html. HTML output generated by books.asp. Listing for backOrder.xml. Listing for books.xsl.

G.1 G.2 G.3 G.4 G.5 G.6 G.7 G.8 G.9 G.10

G

Bug2Bug.com documents presented in this appendix. Some built-in ASP objects. Listing for books.asp. Two ADO object and collection types. Two SQL keywords. Listing for book1.asp. Listing for addToCart.asp. Listing for viewCart.asp. Listing for order.html. Listing for process.asp.

The Middle Tier: Business Processes

687 687 688 693 694 696 701 703 707 717

Illustrations

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H.1 I.1 I.2 I.3 I.4 I.5 I.6

H

Products table for the Bug2Bug.com Access database.

The Bottom Tier: The Database

724 727 730 731 734 736 740

I

Accessibility Programming

Using the alt attribute of the img tag. HTML table without accessibility modifications. Table optimized for screen reading using attribute headers. A home page written in VoiceXML. Publication page of Deitels VoiceXML page. Elements in VoiceXML.

Preface

Live in fragments no longer. Only connect. Edward Morgan Forster

Welcome to the exciting world of the Internet, the World Wide Web, e-business and e-commerce. This book is by an old guy, a young guy, a young lady and the Deitel & Associates, Inc. writing team she heads, known collectively as The PACK. The old guy (HMD; Massachusetts Institute of Technology 1967) has been in the computer field for 40 years. The young guy (PJD; MIT 1991) has been programming and/or teaching programming for 19 years. The young lady (Kate Steinbuhler; Boston College 2000) majored in English and communications and studied Web development. Kates team, the PACKfor Paul, Abbey, Christy and Kateconsists of Paul Brandano (Boston College School of Management 2000; majored in marketing), Abbey Deitel (Carnegie Mellon University 1995; majored in industrial administration), Christy Connolly (Boston College School of Management; majored in marketing and finance), and, of course Kate Steinbuhler. Together, our experience includes Internet, World Wide Web, e-business and e-commerce software technologies, as well as academic study and industry experience in computer science, information technology, finance, marketing, management, English and communications. Ideally, we want this book to speak to students in all areas of interest; we hope you will find it informative, challenging and entertaining. This is not a computer programming book, but it does include an optional case study (in Appendices B through H) on building a storefront e-business that sells books online. E-business and e-commerce are evolving rapidly, if not explosively. This creates tremendous challenges for us as authors, for our publisher (Prentice Hall), for instructors, for students and for professional people. This book, e-business & e-commerce for Managers, is designed to meet these challenges.

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Why We Wrote e-Business and e-Commerce for ManagersToday, e-business and e-commerce are exploding; businesses everywhere are creating Web presences and reaching their markets in ways that were never before possible. College professors are eager to incorporate e-business and e-commerce into their undergraduate and graduate Internet, Web and business curricula. Professionals are eager to incorporate ebusiness and e-commerce technology into their organizations. Students want to learn these leading-edge technologies that will be immediately useful to them as they leave the college environment and head into a world where the Internet and World Wide Web have a massive prominence. Our goal was clear: produce a textbook for college-level courses in e-business and ecommerce for students with little or no programming experience, and to explore the tremendous opportunities afforded by the Web. To meet this goal, we produced a comprehensive book that explains the different elements of e-business and e-commerce and provides abundant real-world applications to encourage students to learn from examples currently on the Web. We performed extensive research for this book and located hundreds of Internet and Web resources to help students learn about building and managing e-businesses. These links include general information, tutorials and demonstrations. Many of the demos are fun, such as the E*TRADE investing game in which students can win cash prizes for participating. The resources also point students to lots of free stuff on the Internet, including free Internet access. This book is appropriate for students and professionals who wish to create their own e-businesses. Many of the Internet and Web resources we include point students to turnkey solutions (some for a fee and others for free) for creating e-businesses. Students will also be able to use the programming technologies presented in the appendices to create e-businesses themselves (they will also need to set up merchant accounts with banks and use an industrial-strength database system). The tour of the book in Chapter 1 outlines the elements we present for building real e-businesses.

Teaching Approache-Business and e-Commerce for Managers contains a rich collection of examples, exercises and projects drawn from many fields to gives students an opportunity to solve interesting realworld problems. The book concentrates on the principles of good e-business management, and provides opportunities for class discussion and scores of Web-based exercises. The text emphasizes good pedagogy. World Wide Web Access The installation instructions for the case study for e-Business and e-Commerce for Managers (and our other publications) is free for download at the Deitel & Associates, Inc. Web site:www.deitel.com

Objectives Each chapter begins with a statement of Objectives. This tells students what to expect and gives them an opportunity, after reading the chapter, to determine if they have met these objectives.

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Quotations The learning objectives are followed by quotations. Some are humorous, some are philosophical and some offer interesting insights. Our students enjoy relating the quotations to the chapter material. Many of the quotations are worth a second look after reading each chapter. Outline The chapter Outline helps students approach the material in top-down fashion. This, too, helps students anticipate what is to come and set a comfortable and effective learning pace. Illustrations/Figures The illustrations and figures provide visual examples of business concepts, or feature actual businesses on the Web. Charts and tables offer lists of additional resources, and break information into an organized, easy-to-read format. e-Facts The e-Facts offer the student an interesting break from the text. They are tied into the current discussion, providing interesting facts and statistics on the effects of the Internet, current trends and future projections. Summary Each chapter ends with additional pedagogical devices. We present a thorough, bullet-liststyle Summary of each chapter, to help the student review and reinforce key concepts. Terminology We include in the Terminology section an alphabetized list of the important terms defined in the chapteragain for further reinforcement. Self-Review Exercises and Answers Self-Review Exercises and Answers are included for self-study. This gives the student a chance to build confidence with the material and prepare for the regular exercises. Students should attempt all the self-review exercises and check their answers. Exercises The chapter exercises include simple recall of important terminology and concepts, issues for class discussion, Web-based demonstrations and group and semester projects. The large number of exercises across a wide variety of areas enables instructors to tailor their courses to the unique needs of their audiences, and to vary course assignments each semester. Instructors can use these exercises to form homework assignments, short quizzes and major examinations. The solutions for most of the exercises are included in the Instructors Manual. [NOTE: Please do not write to us requesting the instructors manual. Distribution of this publication is strictly limited to college professors teaching from the book. Instructors may obtain the solutions manual only from their regular Prentice Hall representatives. We regret that we cannot provide the solutions to professionals.] Optional Case Study Using the Deitel Live-Code Approach The optional case study, Building an e-Business, in the appendices completely implements a simplified version of an e-business storefront that sells books. Please take a moment now and read about this case study in the Tour of the Book at the end of Chapter 1; the case

XXX

study is summarized in the descriptions of Appendices B through H. In the case study, each new concept is presented in the context of a complete, working program immediately followed by one or more windows showing the programs input/output dialog. We call this style of teaching and writing our live-code approach. We use real, working programs to teach programming languages. Reading these programs is much like entering and running them on a computer. All the code in the case study is free for download at our Web site, www.deitel.com. If you choose to do the case study, please download this code and carefully read the installation and setup instructions in Appendices J and K on our Web site. Glossary The extensive glossary summarizes the key terms in each chapter to provide a quick reference for students while working on a homework assignment or preparing for an exam. Index Entries We have included an extensive Index at the back of the book. This helps the student find any term or concept by keyword. The terms in the Terminology sections generally appear in the Index (along with many more index items from each chapter). Students can use the Index in conjunction with the Terminology sections to be sure they have covered the key material of each chapter. Recommended Readings An extensive bibliography of books, articles and online documentation is included at the close of several chapters to encourage further reading.

AcknowledgmentsOne of the great pleasures of writing a textbook is acknowledging the efforts of the many people whose names may not appear on the cover, but whose hard work, cooperation, friendship and understanding were crucial to the production of the book. Many other people at Deitel & Associates, Inc. devoted long hours to this book. Barbara Deitel managed the preparation of the manuscript, coordinated the production of the book with Prentice Hall and spent long hours researching the quotations at the beginning of each chapter. She did all this in parallel with handling her extensive financial and administrative responsibilities at Deitel & Associates, Inc., including serving as Chief Financial Officer. Abbey Deitel, a graduate of Carnegie Mellon Universitys Industrial Management program, and President of Deitel & Associates, Inc., co-authored Chapters 5, 6, 7 and Appendix A and actively participated in the development of the other chapters. Paul Brandano, a graduate of the Boston College Carroll School of Management, and Director of Marketing and Corporate Training at Deitel & Associates, Inc., co-authored Chapters 2, 15, 18 and 19 and actively participated in the development of the other chapters. He would like to thank, Mr. Tom Pollock who provided insights for Chapter 19. Christine Connolly, a graduate of Boston College Carroll School of Management and Director of Public Relations and Advertising at Deitel & Associates, Inc., coauthored Chapters 8, 9, 10 and 16 and actively participated in the development of

XXXI

the other chapters. She would like to acknowledge Vicky Crittenden, Chair and Associate Professor of Marketing at the Carroll School of Management at Boston College, for support as a mentor and friend. Peter Brandano, a graduate of Boston College with a major in computer science, co-authored Chapter 14 and Appendix I, and validated the case study in Appendices B through H. Sean Santry, a computer science and philosophy graduate of Boston College, and Director of Software Development at Deitel & Associates, Inc., co-authored Chapter 5 and served as an advisor on the programming appendices. We would also like to acknowledge contributions of several people who contributed to the case study in Appendices B through H. Tem Nieto, a graduate of the Massachusetts Institute of Technology, and the Director of Product Development at Deitel & Associates, Inc., was the chief architect of the case study appendices. He has co-authored several books and multimedia packages with the Deitels and has contributed over the years to virtually every Deitel & Associates, Inc. publication. Matt R. Kowalewski, a graduate of Bentley College with a major in accounting information systems, was the chief implementer and writer of the programming appendices. He also co-authored Chapter 5. Carlo Garcia, a senior majoring in computer science at Boston University, participated in the development of the programming appendices. Marina Zlatkina, a senior majoring in computer science at Brandeis University, edited the case study. Peter Lavalle, a junior majoring in computer information systems at Bentley College, edited the case study.

Jacob Ellis, a freshman at the University of Pennsylvania, and David Gusovsky, a freshman at Berkeley, co-authored with us Chapters 3 and 4 in our Internet and World Wide Web How to Program book. Appendices C and D evolved from these chapters. The Deitel & Associates, Inc. College Internship Program offers a limited number of salaried positions to Boston-area college students majoring in Computer Science, Information Technology, Marketing, English and technical writing. Students work at our corporate headquarters in Sudbury, Massachusetts full-time in the summers and/or part-time during the academic year. Full-time positions are available to college graduates. For more information about this competitive program, please contact Abbey Deitel at deitel@deitel.com and check our Web site, www.deitel.com. Deitel & Associates, Inc. student interns who worked on this book include: Neil Agarwal, a Harvard student majoring in Mathematics, co-authored Chapter 7. Rudolf Faust, a freshman at Stanford University, co-authored Chapter 1 and the Preface. Jaimee Lederman, a graduate of Brown University, co-authored Chapter 4.

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Lauren Trees, a senior majoring in English at Brown University, co-authored Chapter 12. We would especially like to thank Lauren for her extraordinary research efforts and participation in designing the outline of the book. Jeni Jefferson, a senior at Boston College, helped research the quotes and co-authored the glossary. Melissa Jordan, a senior majoring in graphic design at Boston University, created the artwork for the chapters. Jason Rosenfeld, a junior majoring in computer science at Northwestern University, edited Chapter 14 and Appendix I. Christina Carney, a senior at Framingham State College, researched the quotes and helped develop the glossary. Fletcher Boland, a senior at Lincoln-Sudbury Regional High School, researched many of the Internet and World Wide Web Resource sections.

We are fortunate to have been able to work on this project with the talented and dedicated team of publishing professionals at Prentice Hall. We especially appreciate the extraordinary efforts of our computer science editor, Petra Recter, our project manager, Crissy Statuto, our assistant editor, Sarah Burrows, and their bossour mentor in publishingMarcia Horton, Editor-in-Chief of Prentice-Halls Engineering and Computer Science Division. Vince OBrien and Camille Trentacoste did a marvelous job managing production. We owe special thanks to the creativity of Tamara Newnam Cavallo (smart_art@earthlink.net) who did the art work the cover, the chapter-opener art and the e-Fact icon. We wish to acknowledge the efforts of our reviewers and to give a special note of thanks to Crissy Statuto of Prentice Hall who managed this extraordinary review effort: Graham Peace (Duquesne University) Kenton Walker (University of Wyoming) Jane Mackay (Texas Christian University) Elizabeth Erickson (University of San Francisco) Ted Pawlicki (University of Rochester) Anne Marie Smith (La Salle University) Bobbie Hyndman (West Texas A&M University) Clint Bickmore (Front Range Community College) Shirley Becker (Florida Institute of Technology) Q. B. Chung (Villanova University) Edmund Lam (University of California) Jeff Laird (Northeast Technical Community College) Richard Platt (University of West Florida) Clive Sanford (University South Florida) Robert Mills (Utah State University) Joe Bell (University of Northern Colorado) Peter Alexander (University of California) Phillip Gordon (University of California- Berkeley) Biao Wang (Boston University)

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Roger Rongxin Chen (University of San Francisco) Mark Cannice (University of San Francisco) Stuart Brian (Holy Family College) Peter Cammick (University of Tampa) Antonis Stylianou (University of North Carolina at Charlotte) Gopal Iyer (Florida Atlantic University) Babita Gupta (California State University at Monterey Bay) Ken Tachibana (iMind Education Systems) Stephen Cocconi (Los Medanos College) Marios Koufaris (Baruch College) Scott Schneberger (University of West Ontario) Frank Fish (Auto Leisure Products) Steve Burnett (RSA Security) Duke Butler (marchFirst) John Daly (Verizon Wireless) Brian ODonahue (Verizon Wireless) Jeremy Kurtz (Stark State College of Technology) Jonathan Earl (Technical Training and Consulting) Craig Peterson (Utah State University) Under a tight time schedule, these reviewers scrutinized the text and made countless suggestions for improving the accuracy and completeness of the presentation. We would sincerely appreciate your comments, criticisms, corrections and suggestions for improving the text. Please address all correspondence to our email address:deitel@deitel.com

We will respond immediately. Well, thats it for now. Our best wishes to you as you enter the exciting world of e-business and e-commerce.Dr. Harvey M. Deitel Paul J. Deitel Kate Steinbuhler

About the AuthorsDr. Harvey M. Deitel, CEO of Deitel & Associates, Inc., has 40 years in the computing field including extensive industry and academic experience. He is one of the worlds leading computer science instructors and seminar presenters. Dr. Deitel earned B.S. and M.S. degrees from the Massachusetts Institute of Technology and a Ph.D. from Boston University. He has 20 years of college teaching experience including earning tenure and serving as the Chairman of the Computer Science Department at Boston College before founding Deitel & Associates, Inc. with Paul J. Deitel. He is author or co-author of several dozen books and multimedia packages and is currently writing many more. With translations published in Japanese, Russian, Spanish, Elementary Chinese, Advanced Chinese, Korean, French, Polish and Portuguese, Dr. Deitel's texts have earned international recognition. Dr. Deitel has delivered professional seminars internationally to major corporations, government organizations and various branches of the military.

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Paul J. Deitel, Executive Vice President of Deitel & Associates, Inc., is a graduate of the Massachusetts Institute of Technologys Sloan School of Management where he studied Information Technology. Through Deitel & Associates, Inc. he has delivered Internet and World Wide Web courses and programming language classes for industry clients including Compaq, Sun Microsystems, White Sands Missile Range, Rogue Wave Software, Computervision, Stratus, Fidelity, Cambridge Technology Partners, Lucent Technologies, Adra Systems, Entergy, CableData Systems, NASA at the Kennedy Space Center, the National Severe Storm Laboratory, IBM and many other organizations. He has lectured on for the Boston Chapter of the Association for Computing Machinery, and has taught satellite-based courses through a cooperative venture of Deitel & Associates, Inc., Prentice Hall and the Technology Education Network. He and his father, Dr. Harvey M. Deitel, are the worlds best-selling Computer Science textbook authors. Kate Steinbuhler, Editorial Director at Deitel & Associates, Inc. and a graduate of Boston College with majors in English and communications, served as project manager and primary author of Chapters 3, 11, 12, 17 and 20. She co-authored Chapters 1, 4, 12 and 14, and served as project manager and co-author for six business chapters in e-Business and eCommerce for Managers sister book, e-Business and e-Commerce How To Program. She would like to acknowledge the other members of the PACK (the PACK consists of Paul Brandano, Abbey Deitel, Christy Connolly and Kate Steinbuhler) for their hard work and devotion to the project, and extend a special thank you to Greg Friedman and Alyssa Clapp for their support. She would also like to thank Dale Herbeck, Chair and Associate Professor of Communications at Boston College, who provided insights for Chapter 11. The Deitels are co-authors of the best-selling introductory college computer-science programming language textbooks, Internet and World Wide Web How to Program and eBusiness and e-Commerce How to Program. The Deitels are also co-authors the Internet and World Wide Web Programming Multimedia Cyber Classroom and the e-Business and e-Commerce Programming Multimedia Cyber Classroom. The Deitels are authors of the worlds #1 selling college text books in Java, C and C++.

e-Business and e-Commerce How to Program: A Sister Book Intended for Programming Coursese-Business & e-Commerce for Managers is one of two e-Business/e-Commerce books that we developed for Prentice Hall this year; this bookintended primarily for managers and nonprogrammersand its sister book, e-Business & e-Commerce How to Programis intended for information technology and computer science majors. Here is the table of contents for e-Business & e-Commerce How to Program: Chapter 1 Introduction to Computers, the Internet and the Web Chapter 2 Introduction to Internet Explorer 5 and the World Wide Web Chapter 3 e-Business Models Chapter 4 Internet Marketing Chapter 5 Online Monetary Transactions Chapter 6 Legal, Ethical and Social Issues; Internet Taxation Chapter 7 Computer and Network Security Chapter 8 Hardware, Software and Communications

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Chapter 9 Introduction to Hypertext Markup Language 4 (HTML 4) Chapter 10 Intermediate HTML 4 Chapter 11 Ultimate Paint Chapter 12 Microsoft Frontpage Express Chapter 13 JavaScript/ JScript: Introduction to Scripting Chpater 14 JavaScript/ JScript: Control Structures I Chapter 15 JavaScript/ JScript: Control Structures II Chapter 16 JavaScript/ JScript: Functions Chapter 17 JavaScript/ JScript: Arrays Chapter 18 JavaScript/ JScript: Objects Chapter 19 Dynamic HTML: Cascading Style Sheets (CSS) Chapter 20 Dynamic HTML: Object Model and Collections Chapter 21 Dynamic HTML: Event Model Chapter 22 Dynamic HTML: Filters and Transitions Chapter 23 Dynamic HTML: Data Binding with Tabular Data Control Chapter 24 Dynamic HTML: Client-Side Scripting with VBScript Chapter 25 Active Server Pages (ASP) Chapter 26 ASP Case Studies Chapter 27 XML (Extensible Markup Language) Chapter 28 Case Study: An Online Bookstore Chapter 29 Perl 5 and CGI (Common Gateway Interface) Chapter 30 Dynamic HTML: Structured Graphics ActiveX Control Chapter 31 Dynamic HTML: Path, Sequencer and Sprite ActiveX Controls Chapter 32 Multimedia: Audio, Video, Speech Synthesis and Recognition Chapter 33 Macromedia Flash: Building Interactive Animations Chapter 34 Accessibility Appendix A: HTML Special Characters Appendix B: HTML Colors Appendix C: ASCII Character Set Appendix D: Operator Precedence Charts

e-Business and e-Commerce Programming Multimedia Cyber Classroom: An Interactive Multimedia Version of e-Business and e-Commerce How to ProgramWe have prepared an optional, interactive CD-ROM-based, software version of e-Business and e-Commerce How to Program called the e-Business and e-Commerce Programming Multimedia Cyber Classroom. It is loaded with features for learning and reference. The Cyber Classroom is wrapped with the textbook at a discount in The Complete e-Business and e-Commerce Programming Training Course. If you already have the book and would like to purchase the e-Business and e-Commerce Programming Multimedia Cyber Classroom separately, please call 1-800-811-0912 and ask for ISBN# 0130895407. The CD has an introduction with the authors overviewing the Cyber Classrooms features. The 258 live-code example Web documents in the textbook truly come alive in the Cyber Classroom. If you are viewing a document and want to execute it, simply click on the lightning bolt icon and the document will be loaded into a Web browser and rendered.

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You will immediately seeand hear for the audio-based multimedia Web pagesthe programs outputs. If you want to modify a document and see and hear the effects of your changes, simply click the floppy-disk icon that causes the source code to be lifted off the CD and dropped into one of your own directories so that you can edit the document and try out your new version. Click the speaker icon for an audio that talks about the document and walks you through the code. The Cyber Classroom also provides navigational aids including extensive hyperlinking. The Cyber Classroom remembers in a history list recent sections you have visited and allows you to move forward or backward in that history list. The thousands of index entries are hyperlinked to their text occurrences. You can key in a term using the find feature and the Cyber Classroom will locate occurrences of that term throughout the text. The Table of Contents entries are hot, so clicking a chapter name takes you to that chapter. Students like the hundreds of solved problems from the textbook that are included with the Cyber Classroom. Studying and running these extra programs is a nice way for students to enhance their learning experience. Students and professional users of our Cyber Classrooms tell us they like the interactivity and that the Cyber Classroom is an effective reference because of the extensive hyperlinking and other navigational features. We recently had an e-mail from a person who said that he lives in the boonies and cannot take a live course at a university, so the Cyber Classroom was a good solution to his educational needs. Professors tell us that their students enjoy using the Cyber Classroom, spend more time on the course and master more of the material than in textbook-only courses. Also, the Cyber Classroom helps shrink lines outside professors offices during office hours. We have also published the C++ Multimedia Cyber Classroom (3/e), the Visual Basic 6 Multimedia Cyber Classroom, the Java 2 Multimedia Cyber Classroom (3/e) and the Internet and World Wide Web Programming Multimedia Cyber Classroom.

About Deitel & Associates, Inc.Deitel & Associates, Inc. is an internationally recognized corporate training and content creation organization specializing in Internet/World Wide Web software technology, ebusiness/e-commerce software technology and computer programming languages education. Deitel & Associates, Inc. is a member of the World Wide Web Consortium. The company provides courses on Internet and World Wide Web programming, e-business and ecommerce programming, Object Technology and major programming languages. The pricipals of Deitel & Associates, Inc. are Dr. Harvey M. Deitel and Paul J. Deitel. The companys clients include many of the worlds largest computer companies, government agencies, branches of the military and business organizations. Through its publishing partnership with Prentice Hall, Deitel & Associates, Inc. publishes leading-edge programming textbooks, professional books, interactive CD-ROM-based multimedia Cyber Classrooms, satellite courses and Web-based training courses. Deitel & Associates, Inc. and the authors can be reached via email atdeitel@deitel.com

To learn more about Deitel & Associates, Inc., its publications and its worldwide corporate on-site curriculum, see the last few pages of this book and visit:

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www.deitel.com

Individuals wishing to purchase Deitel books, Cyber Classrooms, Complete Training Courses and Web-based training courses can do so throughwww.deitel.com

Bulk orders by corporations and academic institutions should be placed directly with Prentice Hall. See the last few pages of this book for worldwide ordering details.

The World Wide Web Consortium (W3C)Deitel & Associates, Inc. is a member of the World Wide Web Consortium (W3C). The W3C was founded in 1994 to develop common protocols for the evolution of the World Wide Web. As a W3C member, we hold a seat on the W3C Advisory Committee (our Advisory Committee representative is our Chief Technology Officer, Paul Deitel). Advisory Committee members help provide strategic direction to the W3C through meetings around the world (the Spring 2000 meeting was held in Amsterdam). Member organizations also help develop standards recommendations for Web technologies (such as HTML, XML and many others) through participation in W3C activities and groups. Membership in the W3C is intended for companies and large organizations. For information on becoming a member of the W3C visit www.w3.org/Consortium/Prospectus/Joining.

Part 1IntroductionOutlineChapter 1 Introduction to e-Business and e-Commerce

Introduction to e-Business and e-CommerceObjectives To examine the growth of e-business and ecommerce. To explore the opportunities and challenges to creating an online business. To understand how the Internet and World Wide Web are revolutionizing business. To explore the success of an Internet entrepreneur. To issue a word of caution to aspiring online entrepreneurs. To present a tour of the book.From the most ancient subject we shall produce the newest science. Ebbinghaus, Hermann The simple opposition between the people and big business has disappeared because the people themselves have become so deeply involved in big business. Walter Lippmann By 2010, the only big company will be an e-company. John Chambers, CEO Cisco Systems1 Cautiousness in judgment is nowadays to be recommended to each and every one: if we gained only one incontestable truth every ten years from each of our philosophical writers the harvest we reaped would be sufcient. G. C. Lichtenberg

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Outline1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Introduction: Transitioning to the Web History of the Internet History of the World Wide Web Internet and World Wide Web Development e-Business and e-Commerce Overview A Word of Caution Tour of the Book Internet and World Wide Web Resources

Summary Terminology Self-Review Exercises Answers to Self-Review Exercises Exercises Works Cited

1.1 Introduction: Transitioning to the WebWelcome to the World of e-business and e-commerce. In the last decade, the Internet and World Wide Web have changed the way people communicate, conduct business and manage their daily lives. This text, e-Business & e-Commerce for Managers is designed to offer a clear perspective on the new Internet economy and introduce the basic principles of ebusiness and e-commerce. We have worked hard to create a text that is user-friendly to both business students and non-business students. The book offers extensive Web resources, connecting readers to some of the most important businesses on the Web. These resources include companies offering turnkey solutions to help entrepreneurs set up full-scale e-business Web sites, as well as examples of companies that have used the Web to reach global markets. We have included solutions that are suitable to the needs of multinational corporations, as well as to start-up ebusinesses. For those who want to build an e-business site from scratch, we have included an optional, extensive programming appendix, which offers an introduction to some of the most widely used Web technologies. These technologies include HTML, XML, XSL, JavaScript, Structured Query Language (SQL), ActiveX Data Objects (ADO), HTTP Protocol, VBScript and Active Server Pages (ASP). The appendix is designed for the nonprogrammer and provides a detailed overview of each topic. Each line of programming code is accompanied by a thorough explanation to ensure even nonprogrammers understand each concept. Once you have finished the case study, you will have built a basic shopping-cart-enabled e-business. More experienced programmers may consider using our book e-Business & e-Commerce How to Program (Prentice Hall, 2001) and other programming texts. We have worked hard to include the latest and most important developments in ebusiness and e-commerce. We have conducted extensive research to ensure that we approach each issue accurately and that the information is timely. We reference scores of newspapers, journals, case studies and academic publications (Fig 1.1). In many cases we have included Web links to demonstrations and product walk-throughs to give readers an opportunity for deeper understanding. We have also included extensive World Wide Web resources in each of the chaptersthe reader is strongly encouraged to visit these Web sites.

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In this chapter, we introduce the terms e-business and e-commerce and discuss how the Internet has revolutionized business. We explore the online success of a young entrepreneur who began his e-business from a college campus. We issue a healthy dose of caution in light of the many e-business ventures that have failed, but we remain upbeat and optimistic.

Resources

Afliate Selling (John Wiley & Sons) Boston Business Journal Building Cyberstores (McGraw-Hill) Business 2.0 Business Week C@LL CENTER CRM Solutions Certication Magazine Chattanooga Times Code and Other Laws of Cyberspace (Basic Books) Computer Reseller News Computer Shopper Computer World Customers.com Cyber Rules: Strategies for Excelling At E-Business (Doubleday) Digital Age e-Business Advisor eCompany ENT eWeek Fast Company Financial Times Forbes Fortune Small Business Global Business Technology Information Hiding: Techniques for Steganography and Digital Watermarking (Artech House) Information Week Infoworld Inside Technology Training Fig. 1.1 Works cited (part 1 of 2).

Intelligent Enterprise Inter@ctive Week Internet.com InternetWeek Legal Backgrounder Drudge Manifesto (New American Library) Mass High Tech Messaging Magazine Money Net Commerce Magazine Network World Newsweek Operating Systems, Second Edition PC Magazine PC Novice PC Week Performance Computing Presentations Principles of Internet Marketing (SouthWestern College Publishing) Programming Application With the Wireless Application Protocol (John Wiley and Sons) Revolution RSA Security, Inc. Siliconindia Technology Review The Boston Globe The Complete Guide to Associate and Afliate Programs on the Net (McGraw-Hill) The Denver Post The Independent (London) The Industry Standard

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Resources

The New York Times The One to One Field Book: The Complete Toolkit for Implementing a 1 to 1 Marketing Program (Bantam Doubleday Dell Publishing Group) The Portable MBA The Wall Street Journal Time Fig. 1.1 Works cited (part 2 of 2).

Toronto Star Understanding WAP (Artech House) Upside USA Today Webtechniques Yahoo! Internet Life ZDNet

1.2 History of the InternetIn the late 1960s, one of the authors (HMD) was a graduate student at MIT. His research at MITs Project Mac (now the Laboratory for Computer Sciencethe home of the World Wide Web Consortium) was funded by ARPAthe Advanced Research Projects Agency of the Department of Defense. ARPA sponsored a conference at which several dozen ARPA-funded graduate students were brought together at the University of Illinois at Urbana-Champaign to meet and share ideas. During this conference, ARPA rolled out the blueprints for networking the main computer systems of about a dozen ARPA-funded universities and research institutions. They were to be connected with communications lines operating at a then-stunning 56KB (1K=1024 bits per second; a bit is a single piece of dataeither a zero or a one), at a time when most people (of the few who could be) were connecting over telephone lines to computers at a rate of 110 bits per second. HMD vividly recalls the excitement at that conference. Researchers at Harvard talked about communicating with the Univac 1108 supercomputer across the country at the University of Utah to handle calculations related to their computer graphics research. Many other intriguing possibilities were raised. Academic research was about to take a giant leap forward. Shortly after this conference, ARPA proceeded to implement what quickly became called the ARPAnet, the grandparent of todays Internet. Things worked out differently than originally planned. Although the ARPAnet did enable researchers to share each others computers, its chief benefit proved to be the capability of quick and easy communication via what came to be known as electronic mail (email). This is true even today on the Internet, with e-mail facilitating communication among hundreds of millions of people worldwide. e-Fact 1.1Statistics suggest that e-mail usage is now ten times greater than postal mail.21.1

One of ARPAs primary goals for the network was to allow multiple users to send and receive information at the same time over the same communications paths (such as phone lines). The network operated with a technique called packet switching in which digital data was sent in small packages called packets. The packets contained data, address information, error-control information and sequencing information. The address information was used

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to route the packets of data to their destination, and the sequencing information was used to help reassemble the packets (whichbecause of complex routing mechanismscould actually arrive out of order) into their original order for presentation to the recipient. This packet-switching technique greatly reduced transmission costs from those of dedicated communications lines. The network was designed to operate without centralized control. This meant that if a portion of the network should fail, the remaining working portions would still be able to route packets from senders to receivers over alternate paths. The protocols for communicating over the ARPAnet became known as TCPthe Transmission Control Protocol. TCP ensured that messages were properly routed from sender to receiver and that those messages arrived intact. In parallel with the early evolution of the Internet, organizations worldwide were implementing their own networks for both intra-organization (i.e., within the organization) and inter-organization (i.e., between organizations) communication. A huge variety of networking hardware and software appeared. One challenge was to get these to intercommunicate. ARPA accomplished this with the development of IPthe Internetworking Protocol), truly creating a network of networks, the current architecture of the Internet. The combined set of protocols is now commonly called TCP/IP. Initially, use of the Internet was limited to universities and research institutions; then the military became a big user. Eventually, the government decided to allow access to the Internet for commercial purposes. Initially there was resentment among the research and military communitiesit was felt that response times would become poor as the net became saturated with so many users. In fact, the exact opposite has occurred. Businesses rapidly realized that, by making effective use of the Internet they could tune their operations and offer new and better services to their clients, so they started spending vast amounts of money to develop and enhance the Internet. This generated fierce competition among the communications carriers and hardware and software suppliers to meet this demand. The result is that bandwidth (i.e., the information carrying capacity of communications lines) on the Internet has increased tremendously and costs have plummeted. It is widely believed that the Internet has played a significant role in the economic prosperity that the United States and many other industrialized nations have enjoyed over the last decade and are likely to continue enjoying for many years.

1.3 History of the World Wide WebThe World Wide Web allows computer users to locate and view multimedia-based documents (i.e., documents with text, graphics, animations, audios and/or videos) on almost any subject. Even though the Internet was developed more than three decades ago, the introduction of the World Wide Web was a relatively recent event. In 1990, Tim Berners-Lee of CERN (the European Laboratory for Particle Physics) developed the World Wide Web and several communication protocols that form the backbone of the World Wide Web. The Internet and the World Wide Web will surely be listed among the most important and profound creations of humankind. In the past, most computer applications ran on standalone computers, i.e., computers that were not connected to one another. Todays applications can be written to communicate among the worlds hundreds of millions of computers. The Internet mixes computing and communications technologies. It makes our work easier.

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It makes information instantly and conveniently accessible worldwide. It makes it possible for individuals and small businesses to get worldwide exposure. It is changing the nature of the way business is done.

1.4 Internet and World Wide Web DevelopmentComputer use is increasing in almost every field of endeavor. In an era of steadily rising costs, computing costs have decreased dramatically because of the rapid developments in both hardware and software technology. Computers that might have filled large rooms and cost millions of dollars just two decades ago can now be inscribed on the surfaces of silicon chips smaller than a fingernail, costing perhaps a few dollars each. Ironically, silicon is one of the most abundant materials on earthit is an ingredient in common sand. Silicon-chip technology has made computing so economical that hundreds of millions of general-purpose computers are in use worldwide, helping people in business, industry, government and in their personal lives. That number could easily double in a few years. Advances in hardware and software have led to the explosion of the Internet and World Wide Web. Propelling the wave of innovation is a constant demand for new and improved technology. People want to transmit pictures and they want those pictures to be in color. They want to transmit voices, sounds and audio clips. They want to transmit full-motion color video. And at some point, they will insist on three-dimensional, moving-image transmission. Our current flat, two-dimensional televisions will eventually be replaced with three-dimensional versions that turn our living rooms into theaters-in-the-round or sports stadiums. Our business offices will enable 3D video conferencing among colleagues half a world apart as if they were sitting around one conference table. Consumers who want to buy products from electronic storefronts will be able to see perfect 3D images of these products beforehand. The possibilities are intriguing and the Internet is sure to play a key role in making many of these possibilities become reality. There have been predictions that the Internet will eventually replace the telephone system. Why stop there? It could also replace radio and television as we know them today. It is not hard to imagine the Internet and the World Wide Web replacing newspapers with completely electronic news media. Many newspapers and magazines already offer Webbased versions, some fee based and some free. Over 95 percent of printed material is currently not online, but in the future it may be. The e-book, an electronic text that is encryption-protected by the publisher, is on the rise and could well supplant the paper book. With a chemistry e-book, students could watch animations of chemical reactions, and a history e-book could be updated to include current events. Increased bandwidth is making it possible to stream good quality audio and video over the Web. Companies and even individuals already run their own Web-based radio and television stations. Just a few decades ago, there were only a few television stations. In a few more years, we will have access to thousands of stations broadcasting over the Web worldwide. This textbook you are reading may someday appear in a museum alongside radios, TVs and newspapers in an early media of ancient civilization exhibit.

1.5 e-Business and e-Commerce OverviewWe have recently entered the Age of Knowledge. Often you might hear the phrases, knowledge is power and content is king when discussing business on the Internet. Events in the short course of e-business and e-commerce history have demonstrated that successful

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e-businesses are those that recognize the needs of their target audienceS and match those needs with relevant content. Building an e-business to accomplish this is not limited to seasoned professionalsmany successful online ventures have been started by students on college campuses (see the Campusfood.com feature). The terms e-business and e-commerce, often confused with one another, are different. According to Andrew Bartel, vice president and research leader of e-commerce trends at Giga Information Group, Inc., e-commerce involves exchanges among customers, business partners and the vendor. For example, a supplier interacts with a manufacturer, customers interact with sales representatives and shipment providers interact with distributors. E-business is composed of these same elements, but also includes operations that are handled within the business itself. For example, production, development, corporate infrastructure and product management.3 E-business and e-commerce have increased the speed and ease of business transactions and, as a result, competition is intense. Businesses must adjust constantly to new technologies, integrate newer and faster systems and meet the needs of people around the world. Inventories are no longer kept in preparation for orders; rather, products are prepared specifically for consumers. Good employees are hard to find and even harder to keep. Competing entities must now collaborate to survive, and must realize that customers do not have far to go to buy from the next available vendor.

Campusfood.com: Meeting the Needs of the College Campus 5,5Originally launched to serve the students at the University of Pennsylvania, Campusfood.com now serves students from approximately 150 universities and colleges around the United States (Fig. 1.2). The site provides interactive menus to local eating establishments, allowing students to place orders over the Internet. Students receive discounts on local restaurants, and can easily find restaurant contact information including hours of operation, locations and phone numbers. Digitally transmitted orders also reduce mistakes, benefitting both restaurants and students. Founder Michael Saunders began developing the site while a junior at the University of Pennsylvania. With the help of some classmates, the site was launched in 1998. Almost immediately after graduation, the Campusfood.com team began visiting universities on the East coast in an effort to build their customer base. This involved registering schools, attracting students and generating a list of the local restaurants from which the students could order food to be delivered. Currently, this activity is outsourced to a marketing firm and schools nationwide are being added to the list. Financed through private investors, friends and family members, the site was built on an investment of less than one million dollars. Another company, with services also reaching the college-student market, has investments totaling upwards of $100 million. Revenue is generated through transaction fees; the site takes a 5 percent commission on each order. Still under development is an electronic payment system that will work like a debit account on a students meal plan. Students can browse registered schools and order online by visiting www.campusfood.com.

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Campusfood.com: Meeting the Needs of the College Campus 5,5

Fig. 1.2

Campusfood.com home page. (Courtesy of Campusfood.com, Inc.)

As more people begin using the Web, all companies, whether they are currently established online or planning to conduct some of their business transactions online, must consider the impact that Web-enabled business will have on them. Women, the elderly and people with modest incomes are appearing online.6 Figure 1.3, further demonstrates the growth of e-business and e-commerce. For a look at the Internet, its history and its population, visit the Web site: www.gccgroup.com/internet/facts1.htm. Setting up and running an e-business, especially one that processes a large number of transactions, requires technical, marketing and advertising expertise. Customers want access to products and services on a 24-by-7 basis (24 hours-per-day, 7 days-per-week) and the easiest way to provide that is to move operations online. The businesses that provide the most reliable, most functional, most user-friendly and fastest services will be the ones that succeed.

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Before

After

In 1999, 54.5 million users were ages 19-49. Users over the age of 50 numbered 17.3 million in 1996. By the end of 1999, 45.4 million households were online. In 1999, teenagers spent $129 million online.

By 2005, users between the ages of 19-49 are expected to number 84.0 million. Jupiter Research estimates 49.6 million Internet users will by over the age of 50 in 2005. More than 80.2 million households will be online by 2005. By 2002, research estimates that teenagers will spend approximately $1.2 billion online.

Fig. 1.3

Growth on the Internet. (Courtesy of Jupiter Research, Spring 2000.)

Banks are moving all their operations online, as it becomes clear that the Web, unconstrained by geographic boundaries, is a more efficient vehicle for their services and allows them to operate on a truly global scale. Real-time trading in foreign markets has been made possible, as has instantaneous currency conversion. Soon, global data on financial activity will be available online in real time and global transactions through the Internet will become the norm. People can pay their bills, write and cash checks, trade stocks, take out loans, mortgage the