Download 9. THE INTERNET: ELECTRONIC COMMERCE, ELECTRONIC …

10.1
LEARNING OBJECTIVES
• DESCRIBE INTERNET, ITS
CAPABILITIES
• IDENTIFY INTERNET BENEFITS TO
ORGANIZATIONS
• DEMONSTRATE HOW INTERNET
USED FOR ELECTRONIC
COMMERCE
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10.2
LEARNING OBJECTIVES
• DEMONSTRATE HOW INTERNET
TECHNOLOGY USED FOR INTRAAND INTERORGANIZATIONAL
ELECTRONIC BUSINESS
• EXAMINE CHALLENGES OF
INTERNET TO BUSINESS
& SOCIETY
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10.3
MANAGEMENT CHALLENGES
• THE INTERNET
• INTERNET & ELECTRONIC
COMMERCE
• INTRANETS & ELECTRONIC
BUSINESS
• CHALLENGES & OPPORTUNITIES
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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
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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
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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
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INTERNET TERMS
• HYPERTEXT TRANSPORT
PROTOCOL (http): communications
standard used to transfer Web pages
• HYPERTEXT MARKUP LANGUAGE
(HTML): popular programming
language for creating Web sites
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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
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INTRANET
• INTERNAL NETWORK
• WWW TECHNOLOGY
• FIREWALL: Security System to Prevent
Invasion of Private Networks
• OVERCOMES COMPUTER PLATFORM
DIFFERENCES
• OFTEN INSTALLED ON EXISTING
NETWORK INFRASTRUCTURE
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10.11
EXTRANET
ALLOWS SELECT USERS OUTSIDE
ORGANIZATION TO USE ITS
INTRANET:
• CUSTOMERS
• BUSINESS PARTNERS
• VENDORS
*
10.12
EXTRANET
DATABASES
CUSTOMER
SUPPLIER
INTERNET
FIREWALL
SERVER
BUSINESS
PARTNER
CLIENTS
10.13
INTERNET BENEFITS
•
•
•
•
•
GLOBAL CONNECTIVITY
REDUCED COMMUNICATIONS COST
LOWER TRANSACTION COSTS
REDUCED AGENCY COSTS
INTERACTIVITY, FLEXIBILITY,
CUSTOMIZATION
• ACCELERATED KNOWLEDGE
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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
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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
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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
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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
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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
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10.20
INTRANETS AND
ELECTRONIC BUSINESS
•
•
•
•
•
ELECTRONIC COMMERCE SERVERS
BENEFITS
GROUP COLLABORATION
FUNCTIONAL APPLICATIONS
SUPPLY CHAIN MANAGEMENT
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10.21
ELECTRONIC COMMERCE
SERVERS:
• ICAT: on-line catalog shopping, order
placement (Icat)
• NET.COMMERCE: merchant server
supporting Secure Electronic
Transactions protocol (IBM)
• MerchantXpert:: search tools, order
management, tax, payment, logistics
modules (Netscape)
10.22
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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)
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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
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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
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FUNCTIONAL APPLICATIONS:
•
•
•
•
FINANCE & ACCOUNTING
HUMAN RESOURCES
SALES & MARKETING
MANUFACTURING & PRODUCTION
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10.27
FINANCE & ACCOUNTING:
•
•
•
•
GENERAL LEDGER REPORTING
PROJECT COSTING
ANNUAL REPORTS
BUDGETING
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10.28
HUMAN RESOURCES:
•
•
•
•
•
CORPORATE POLICIES
EMPLOYEE SAVINGS PLANS
BENEFITS ENROLLMENT
ON-LINE TRAINING
JOB POSTING
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10.29
SALES & MARKETING:
•
•
•
•
•
COMPETITOR ANALYSIS
PRICE UPDATES
PROMOTIONAL CAMPAIGNS
SALES PRESENTATIONS
SALES CONTRACTS
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10.30
MANUFACTURING & PRODUCTION:
•
•
•
•
•
QUALITY MEASUREMENTS
MAINTENANCE SCHEDULES
DESIGN SPECIFICATIONS
MACHINE OUTPUT
ORDER TRACKING
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10.31
SUPPLY-CHAIN MANAGEMENT
CUSTOMERS
MARKETING
& SALES
CUSTOMER
SERVICE
PROCUREMENT
INTRANET
ACCOUNTING &
FINANCE
SHIPPING &
DISTRIBUTION
10.32
PRODUCTION
PLANNING
INVENTORY
PRODUCTION &
MANUFACTURING
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
10.35