Introduction to e commerce

2001 Prentice Hall, Inc. All rights reserved.

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Chapter 1, Introduction to e-Business and e-Commerce

Outline1.1 Introduction: Transitioning to the Web1.2 History of the Internet1.3 History of the Web1.4 Internet and World Wide Web Development1.5 e-Business and e-Commerce Overview1.6 A Word of Caution


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1.1 Introduction: Transitioning to the Web

• The Internet has changed the way people communicate, conduct business and manage their daily lives

• Technologies reviewed• Resources used


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1.2 History of the Internet

• Advanced Research Projects Agency of the Department of Defense (ARPA)– Implemented the ARPAnet, the grandparent of today’s

Internet

• Packet switching– Digital data is sent in small packages called packets

• Packets– Contain data, address information, error-control information

and sequencing information

• Transmission Control Protocol (TCP)– ensures that messages are properly routed from sender to

receiver and that those messages arrived intact


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1.2 History of the Internet

• Internetworking Protocol (IP) – Enabled the intercommunication of inter-organization and

intra-organization networks

• The Internet was initially limited to universities and research institutions

• Bandwidth– The information carrying capacity of communications lines


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1.3 History of the World Wide Web

• World Wide Web – Locate and view multimedia-based documents on almost any

subject

– Makes information instantly and conveniently accessible worldwide

– Possible for individuals and small businesses to get worldwide exposure

– Changing the way business is done


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1.4 Internet and World Wide Web Development

• Computer use is increasing in almost every field of endeavor

• Dramatic decrease in the cost of computing• Enhanced multimedia capabilities• Increased publishing and learning opportunities• Enhanced communication technologies


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1.5 e-Business and e-Commerce Overview

• Successful e-businesses are those that recognize the needs of their target audiences and match those needs with relevant content

• Seasoned professionals and young entrepreneurs• e-Commerce

– Involves exchanges among customers, business partners and the vendor

• e-Business – Includes operations that are handled within the business

itself


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• Intense competition• Businesses must adjust to new technologies and

implement new systems• Customized production capabilities• Finding and keeping key employees• 24-by-7 maintenance responsibilities• Must be reliable, fast, functional and user friendly• Brick-and-mortar businesses

– Businesses that have only a physical presence

• Click-and-mortar businesses – Businesses that have both an online and an offline presence


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• Virtual office– All communications are conducted via phone, voice mail,

fax, e-mail and the emerging capabilities of the Internet

• Personalization– Tailoring Web pages to users’ individual preferences and

letting users bypass irrelevant content

• Copyright infringement• Privacy invasion

– The sale of personal data to another organization without the consumer’s knowledge

– Tracking of Internet activity – Unauthorized access to credit-card numbers, medical history

and criminal history


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1.5 Campusfoods.com Feature

• Campusfoods.com• Developed by students at the University of

Pennsylvania• Serves approximately 150 colleges and

universities around the United States• Built on investments made by private investors,

family members and friends• Revenue is generated by a percentage taken from

transaction fees


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1.5 Campusfoods.com Feature

Campusfoods.com home page. (Courtesy of Campusfoods.com.)


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1.6 A Word of Caution

• Avoid– Poor management

– Ineffective marketing

– Ill-designed logistics

– Unrealistic expectations

• Recognize the difficulty of finding funding and going public

• Finding space• Hiring employees

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Introduction to e commerce