Chapter 1 Introduction to eBusiness and eCommerce Outline

Chapter 1, Introduction to e-Business and e-Commerce Outline 1. 1 1. 2 1. 3 1. 4 1. 5 1. 6 Introduction: Transitioning to the Web History of the Internet History of the Web Internet and World Wide Web Development e-Business and e-Commerce Overview A Word of Caution 2001 Prentice Hall, Inc. All rights reserved. 1

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 2001 Prentice Hall, Inc. All rights reserved. 2

3 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 2001 Prentice Hall, Inc. All rights reserved.

4 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 2001 Prentice Hall, Inc. All rights reserved.

5 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 2001 Prentice Hall, Inc. All rights reserved.

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 2001 Prentice Hall, Inc. All rights reserved. 6

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 2001 Prentice Hall, Inc. All rights reserved. 7

1. 5 e-Business and e-Commerce Overview • 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 2001 Prentice Hall, Inc. All rights reserved. 8

1. 5 e-Business and e-Commerce Overview • 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 2001 Prentice Hall, Inc. All rights reserved. 9

10 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 2001 Prentice Hall, Inc. All rights reserved.

11 1. 5 Campusfoods. com Feature Campusfoods. com home page. (Courtesy of Campusfoods. com. ) 2001 Prentice Hall, Inc. All rights reserved.

12 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 2001 Prentice Hall, Inc. All rights reserved.