10 1 LEARNING OBJECTIVES DESCRIBE INTERNET ITS CAPABILITIES

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LEARNING OBJECTIVES • DESCRIBE INTERNET, ITS CAPABILITIES • IDENTIFY INTERNET BENEFITS TO ORGANIZATIONS • DEMONSTRATE HOW INTERNET USED FOR ELECTRONIC COMMERCE * 10. 2

LEARNING OBJECTIVES • DEMONSTRATE HOW INTERNET TECHNOLOGY USED FOR INTRAAND INTERORGANIZATIONAL ELECTRONIC BUSINESS • EXAMINE CHALLENGES OF INTERNET TO BUSINESS & SOCIETY * 10. 3

MANAGEMENT CHALLENGES • THE INTERNET • INTERNET & ELECTRONIC COMMERCE • INTRANETS & ELECTRONIC BUSINESS • CHALLENGES & OPPORTUNITIES * 10. 4

THE INTERNET • BEGAN AS GOVERNMENT CONNECTION OF UNIVERSITIES • INTERNET SERVICE PROVIDER (ISP): organization connected to Internet, leases temporary connections to subscribers • NO ONE OWNS IT, NO FORMAL ORGANIZATION 10. 5 *

INTERNET CAPABILITIES • E -MAIL: person -to-person messaging; document sharing • USERNET NEWSGROUPS: electronic bulletin boards for discussion groups • LISTSERVs: e-mail list servers for discussion groups • CHATTING: interactive conversations • TELNET: log on one computer, work on another • FTP: transfer files from computer to computer • GOPHERS: use menus to locate text material * 10. 6

INTERNET ADDRESS http: //www. prenhall. com/laudon PROTOCOL FOR THE WEB EXTENSION HOST COMPUTER DIRECTORY DOMAIN NAME 10. 7

INTERNET TERMS • HOME PAGE: WWW screen display welcomes user to organization’s page • WEBMASTER: person in charge of Web site • UNIFORM RESOURCE LOCATOR (URL): address of specific Internet resource 10. 8 *

INTERNET TERMS • HYPERTEXT TRANSPORT PROTOCOL (http): communications standard used to transfer Web pages • HYPERTEXT MARKUP LANGUAGE (HTML): popular programming language for creating Web sites * 10. 9

SURFING THE NET • SEARCH ENGINE: tool for locating specific sites or information on WWW • PORTAL: point of entry to WWW • “PUSH” TECHNOLOGY: server streams relevant content to browser • MULTICASTING: sending data to select group 10. 10 *

INTRANET • • • INTERNAL NETWORK WWW TECHNOLOGY FIREWALL: Security System to Prevent Invasion of Private Networks • OVERCOMES COMPUTER PLATFORM DIFFERENCES • OFTEN INSTALLED ON EXISTING NETWORK INFRASTRUCTURE * 10. 11

EXTRANET • • • ALLOWS SELECT USERS OUTSIDE ORGANIZATION TO USE ITS INTRANET: CUSTOMERS BUSINESS PARTNERS VENDORS 10. 12 *

EXTRANET 10. 13

INTERNET BENEFITS • • • GLOBAL CONNECTIVITY REDUCED COMMUNICATIONS COST LOWER TRANSACTION COSTS REDUCED AGENCY COSTS INTERACTIVITY, FLEXIBILITY, CUSTOMIZATION • ACCELERATED KNOWLEDGE * 10. 14

INTERNET & ELECTRONIC COMMERCE • EASY TO LINK WITH OTHER BUSINESSES, CUSTOMERS • CAN UPDATE PRODUCT INFORMATION, ORDERING, CUSTOMER SUPPORT • ON-LINE STOREFRONTS • ENHANCED BUSINESS FORMS * 10. 15

INTERNET & ELECTRONIC COMMERCE • CUSTOMER-CENTERED RETAILING – DISINTERMEDIATION: removal of intermediate layers streamlines process – REDUCED COST TO BUYER, SELLER • HIT: each request for a file recorded in log file * 10. 16

INTERNET BUSINESS MODELS • VIRTUAL STOREFRONT: sells goods, services on-line • MARKETPLACE CONCENTRATOR: concentrates information from several providers • INFORMATION BROKER: provides product, pricing, availability information 10. 17 *

INTERNET BUSINESS MODELS • TRANSACTION BROKER: buyers view rates, terms from various sources • ELECTRONIC CLEARINGHOUSE: auction-like setting, products, prices, change in response to demand • REVERSE AUCTION: buyer sets price, submits to multiple sellers 10. 18 *

INTERNET BUSINESS MODELS • DIGITAL PRODUCT DELIVERY: sell, download software, other digital products • CONTENT PROVIDER: creates revenue through providing client for a fee, and advertising • ON-LINE SERVICE PROVIDER: provides service, support for hardware, software products 10. 19 *

ELECTRONIC COMMERCE SUPPORT SYSTEMS • WEB HOSTING SERVICES: provides large servers for Web sites of fee-paying customer • ELECTRONIC PAYMENT SYSTEM: using Web for electronic funds transfers, credit , smart & debit cards * 10. 20

INTRANETS AND ELECTRONIC BUSINESS • • • ELECTRONIC COMMERCE SERVERS BENEFITS GROUP COLLABORATION FUNCTIONAL APPLICATIONS SUPPLY CHAIN MANAGEMENT * 10. 21

ELECTRONIC COMMERCE SERVERS: • ICAT: on-line catalog shopping, order placement (Icat) • NET. COMMERCE: merchant server supporting Secure Electronic Transactions protocol (IBM) • Merchant. Xpert: : search tools, order management, tax, payment, logistics modules (Netscape) 10. 22 *

ELECTRONIC COMMERCE SERVICES: • OPEN MARKET TRANSACT: customer authentication, order & payment processing, tax, multilanguage customer service (Open Market) • INTERNET COMMERCE SERVER: integrates orders, inventory, customer service, payments (Oracle) * 10. 23

BENEFITS OF INTRANETS: • CONNECTIVITY • CAN BE TIED TO LEGACY SYSTEM & TRANSACTION PROCESSING • INTERACTIVE APPLICATIONS WITH TEXT, AUDIO, VIDEO • SCALABLE TO LARGER OR SMALLER SYSTEMS AS REQUIRED * 10. 24

BENEFITS OF INTRANETS: • EASY TO USE BROWSER INTERFACE • LOW START-UP COSTS • RICH, RESPONSIVE INFORMATION ENVIRONMENT • REDUCED INFORMATION DISTRIBUTION COSTS * 10. 25

GROUP COLLABORATION: • TEAMWARE: intranet-based applications allow teams to share ideas, documents, brainstorming, scheduling. Similar to chat room. • INTERNAL NEWSLETTER • ABILITY TO WORK AT HOME • SHARE INTERNET DISCOVERIES WITH COLLEAGUES 10. 26 *

FUNCTIONAL APPLICATIONS: • • FINANCE & ACCOUNTING HUMAN RESOURCES SALES & MARKETING MANUFACTURING & PRODUCTION * 10. 27

FINANCE & ACCOUNTING: • • GENERAL LEDGER REPORTING PROJECT COSTING ANNUAL REPORTS BUDGETING * 10. 28

HUMAN RESOURCES: • • • CORPORATE POLICIES EMPLOYEE SAVINGS PLANS BENEFITS ENROLLMENT ON-LINE TRAINING JOB POSTING * 10. 29

SALES & MARKETING: • • • COMPETITOR ANALYSIS PRICE UPDATES PROMOTIONAL CAMPAIGNS SALES PRESENTATIONS SALES CONTRACTS * 10. 30

MANUFACTURING & PRODUCTION: • • • QUALITY MEASUREMENTS MAINTENANCE SCHEDULES DESIGN SPECIFICATIONS MACHINE OUTPUT ORDER TRACKING * 10. 31

SUPPLY-CHAIN MANAGEMENT 10. 32

CHALLENGES & OPPORTUNITIES • UNPROVEN BUSINESS MODELS • BUSINESS PROCESS CHANGE REQUIREMENTS • CHANNEL CONFLICTS • TECHNOLOGY HURDLES • LEGAL ISSUES • SECURITY & PRIVACY * 10. 33

Connect to the INTERNET PRESS LEFT MOUSE BUTTON ON ICON TO CONNECT TO THE LAUDON & LAUDON WEB SITE FOR MORE INFORMATION ON THIS CHAPTER 10. 34

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