What is Electronic Commerce?

Learning Objectives

• Internet, Intranet, Extranet• Technology Infrastructure

– How packet-switched networks are combined to form the Internet

– Internet protocols and Internet addressing– The history and use of markup languages on

the Web, including SGML, HTML, and XML• E-commerce• Advantages vs. Disadvantages of EC• Main concerns of EC

The InternetThe Internet

CompanyCompany

IntranetsIntranets

IntranetsIntranets

IntranetsIntranets

IntranetsIntranets

CustomerCustomer SupplierSupplier

Intranet

Other Company Locations

ExtranetExtranet

ExtranetExtranet

Internetworked EnterpriseInternetworked Enterprise

Technology Infrastructure:

The Internet and the World Wide Web

Types of Networks

• A local area network (LAN) is a network of computers close together.

• A wide area network (WAN) is a network of computers connected over a great distance.

Switched Networks

• The Internet uses packet switching• Files are broken down into small pieces

(called packets) that are labeled with their origin, sequence, and destination addresses.

Routing Packets• The computers that decide how best to

forward each packet in a packet-switched network are called ‘routers’.

• The programs on these routers use ‘routing algorithms’ to determine the best path to send each packet.

• These routers and the telecommunication lines connecting them are referred to as ‘the Internet backbone’.

Internet Protocols (IP)

• A protocol is a collection of rules for formatting, ordering, and error-checking data sent across a network.

• ARPANET is the earliest packet-switched network.

• The open architecture of this experimental network used Network Control Protocol (NCP) which later became the core of the Internet.

TCP/IP

• The Transmission Control Protocol (TCP) and the Internet Protocol (IP) are the two protocols that support the Internet operation (commonly referred to as TCP/IP).

• The TCP controls the disassembly of a message into packets before it is transmitted over the Internet and the reassembly of those packets when they reach their destination.

• The IP specifies the addressing details for each packet being transmitted.

Domain Names

• To make the numbering system easier to use, an alternative addressing method that uses words was created.

• An address, such as www.course.com, is called a domain name.

URL (Uniform Resource Locator)

• Internet address• Three parts

• Protocol (how file will be sent)• Domains (computer path to file)• File pathname (folders and filename)

Sample URL

http://www.petrozello.com/petrozello/index.html

protocol (HyperText

Transfer Protocol)

domains

file pathname

folder fileextension

Hypertext Markup Language

• HTML is a simplified subset of SGML (Standard Generalized Markup Language) that includes tags defining the format and style of text elements in a document.

• HTML now includes tags for tables, frames, and other features that help Web designers create more complex page layouts.

HTML Tags• Tags are codes that are used to define

where an HTML element starts and (if necessary) where it ends.

• In an HTML document, each tag is enclosed in brackets (<>).

• A two-sided tag set has an opening tag and a closing tag.

Nested Information• Tags work in pairs• Nest the pairs

<B><I><u> for emphasis </I></B></u>

Unknown results!

<B><I><u> for emphasis</u> </I></B>

for emphasis

Scripting Language and Style Sheet Capabilities

• Web designers can use the OBJECT tag to embed scripting language codes in HTML pages (this is also called client-side scripting).

• Scripts can execute programs on computers that display those pages.

• Cascading Style Sheets (CSS) let designers define formatting styles that can be reapplied to multiple Web pages.

Electronic Commerce

Electronic CommerceElectronic Commerce

Manufacturingand

Production

Engineering,and

Research

Accounting, Finance, andManagement

Suppliers and Other Business Partners

Consumer and Business Customers

Procurement, Distribution, and Logistics

Advertising Sales Customer Service

The Internet

Extranets Company Boundary

Intranets

Intranets

Extranets

Electronic Commerce

• Electronic Funds Transfers (EFTs) have been used by banks for many years.

• Electronic Data Interchange (EDI) occurs when one business transmits computer-readable data in a standard format to another business.

Notify orders

GM

Notify bank to transfer money to USX’s account

Purchase orders to order steel for production

Billing

Example of Using EDI

USX

USX Shipping Department

Bank

Notify shipments

Electronic Data Interchange (EDI)

The primary goals of EDI are: Cut the transaction costSpeed up the ordering process

There are two important considerations:Establishing the physical linkTransferring data in a format compatible to all users

Advantages of E-Commerce

• Cut data handling cost• Easier to search for data and compare

offerings• Electronic commerce increases sale

opportunities for the seller. Web advertising reaches a large amount of potential customers throughout the world.

Disadvantages of E-Commerce

• Some business processes are difficult to be implemented through electronic commerce.

• Computers are needed - Computers are not as portable as catalog

• There are concerns about security provisions on the internet

• Businesses face cultural and legal obstacles to conducting electronic commerce.

Main Concern for E-Commerce

• Enough suppliers available• Method to take orders• Method to deliver product• Method and quality of customer

interaction• Method of information transmittance• Level of work willing to invest

Creating a Web Page

Learning Objectives

• Web presence, Portal• Good web design techniques• HTML used by browser for

formatting• Web site editor

Web Presence

• Business has website– Pure e-business

• Only method of public interaction

– Bricks-and-mortar• Traditional company in existing buildings• Website needed to remain competitive

Portal

• A web site that gives a lot of information about various topics and lets the users customize the page.

Web Page Authoring Programs

• WYSIWYG text editor• Allows you to view a document as it will

appear in the final product and to edit the elements directly within that view

• There is no need to know HTML, but you can still modify the HTML code, if necessary

FrontPage

Dreamweaver

Advance Web Sites

Learning Objectives

• Applying a Theme• Inserting a Bookmark• Building a Web Page with Frames• Working with Navigation View• Inserting a Page Banner• Share Borders and a Navigation Bar

What is a Website?• Web page

– Single page displayed at a website

• Website– Collection of related and linked pages– Infinite number of pages– Usually common visual design theme

Applying a Theme

Creating a Web Site with Frames

Using Frames

• Frame– Independent window within web page– Usual number kept to three– Each has own scroll bars

• Appear only when needed

• Position– Horizontally or vertically

Frames Pages Templates

Frames Page

Banner Frame

Main Frame

Contents Frame

Controlling a Frame

• Frame Properties dialog box– Can set preferences

• Scroll bars displayed• Frames resizable

Frame Properties

Creating a Web Site with Page Banner,Share

Borders and Navigation Bars

Navigation View

Navigation View

A page needs to be put under the navigation view in order to use:– Page Banner– Share Border– Navigation Bar

Page Banner

Share Borders anda Navigation Bar

Either one, not both

Marketing and Planning for an Online Business

Learning Objectives

• What is a business & marketing plan?

• How to start a plan?• How to describe the business• How to analyze the market

Potential Readers

• Bankers– conventional money lenders

• Angels– wealthy individuals providing seed

money

• Venture capitalists– firms willing to assume higher risk for

equity in stock

Potential Readers

• Strategic Partners– Businesses you might want for

alliances• Potential Employees

– Talented people you wish to attract and hire

• Current Employees– People working with you who will find

motivation in plan

Business Plan Structure

• Executive summary• Business description• Marketplace• Sales and marketing• Management• Financial information

Executive Summary

• Summary of all important concepts from each section

• Should be written last

Marketing Mix

Place

Product

Promotion

Price

Goods and servicesavailable to customers

What customersare charged

Messages sent tocustomers

How products andservices are distributed

Product Life Cycle• Other products/services in pipeline to

augment or replace current line?– Pipeline

•metaphor for process to bring product from idea to reality

Bottom Line: How much money?

• The estimate cost with a summary of potential profit

• Outline– How much money business needs– Type of funding you want and when– Exit strategy

• Indicates how investors can recoup if business fails