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Chapter 3
CHAPTER THREE OVERVIEW
Chapter 3
• SECTION 3.1 - BUSINESS AND THE INTERNET
 Disruptive Technology
 Evolution of the Internet
 Accessing Internet Information
 Providing Internet Information
• SECTION 3.2 - EBUSINESS
 Ebusiness Basics
 Ebusiness Models
 Organizational Strategies for Ebusiness
 Measuring ebusiness Success
 Ebusiness Benefits and Challenges
 New Trends in Ebusiness: Egovernment and Mcommerce
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DISRUPTIVE VERSUS
SUSTAINING TECHNOLOGY
Chapter 3
• Disruptive technology – a new way of doing things
that initially does not meet the needs of existing
customers
• Sustaining technology – produces an improved
product customers are eager to buy
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EVOLUTION OF THE INTERNET
Chapter 3
• The Internet began as an emergency military
communications system operated by the
Department of Defense
• Gradually the Internet moved from a military
pipeline to a communication tool for scientists to
businesses
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EVOLUTION OF THE WORLD WIDE WEB
Chapter 3
•
The Internet’s impact on information
 Easy to compile
 Increased richness and reach
 Improved content
• The Internet makes it possible to perform business in
ways not previously imaginable
• It can also cause a digital divide
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EVOLUTION OF THE WORLD WIDE WEB
Chapter 3
• World Wide Web (WWW) – a global hypertext
system that uses the Internet as its transport
mechanism
 Web 2.0
 Mashups
 Web 3.0
• Hypertext transport protocol (HTTP) – the Internet
standard that supports the exchange of information
on the WWW
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ACCESSING INTERNET INFORMATION
Chapter 3
•
Four tools for accessing Internet information
Intranet – internalized portion of the Internet,
protected from outside access, for employees
2. Extranet – an intranet that is available to strategic
allies
3. Portal – website that offers a broad array of
resources and services
4. Kiosk – publicly accessible computer system that
allows interactive information browsing
1.
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PROVIDING INTERNET INFORMATION
Chapter 3
•
Three common forms of service providers
1.
2.
3.
Internet service provider (ISP) –provides individuals and
other companies access to the Internet
Online service provider (OSP) – offers an extensive array
of unique Web services
Application service provider (ASP) – offers access over the
Internet to systems and related services that would
otherwise have to be located in organizational computers
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EBUSINESS MODELS
Chapter 3
• Ebusiness model – an approach to conducting electronic
business on the Internet
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ORGANIZATIONAL STRATEGIES FOR
EBUSINESS
Chapter 3
• Primary business areas taking advantage of
ebusiness include:
 Marketing/sales
 Financial services
 Procurement
 Customer service
 Intermediaries
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MEASURING EBUSINESS SUCCESS
Chapter 3
• Most companies measure the traffic on a website as
the primary determinant of the website’s success
• Clickstream data tracks the exact pattern of a
consumer’s navigation through a website
• Website metrics include visitor metrics, exposure
metrics, visit metrics, and hit metrics
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EBUSINESS BENEFITS AND CHALLENGES
Chapter 3
• Ebusiness benefits
include:
• Ebusiness challenges include:
 Protecting consumers
 Highly accessible
 Leveraging existing systems
 Increased customer
 Increasing liability




loyalty
Improved information
content
Increased convenience
Increased global reach
Decreased cost
 Providing security
 Adhering to taxation rules
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EBUSINESS BENEFITS AND CHALLENGES
Chapter 3
• There are numerous advantages and limitations in
ebusiness revenue models including:
 Transaction fees
 License fees
 Subscription fees
 Value-added fees
 Advertising fees
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EGOVERNMENT AND MCOMMERCE
Chapter 3
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EGOVERNMENT AND MCOMMERCE
Chapter 3
• Mobile commerce - the
ability to purchase
goods and services
through a wireless
Internet-enabled device
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