Chapter 3McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
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CHAPTER THREE OVERVIEW
• 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
• 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
• 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
• 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• 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
• Four tools for accessing Internet information
1. 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
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PROVIDING INTERNET INFORMATION
• Three common forms of service providers1. Internet service provider (ISP) –provides
individuals and other companies access to the Internet
2. Online service provider (OSP) – offers an extensive array of unique Web services
3. 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
• Ebusiness model – an approach to conducting electronic business on the Internet
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ORGANIZATIONAL STRATEGIES FOR EBUSINESS
• Primary business areas taking advantage of ebusiness include: Marketing/sales Financial services Procurement Customer service Intermediaries
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MEASURING EBUSINESS SUCCESS
• 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
• Ebusiness benefits include: Highly accessible Increased customer
loyalty Improved information
content Increased convenience Increased global reach Decreased cost
• Ebusiness challenges include: Protecting consumers Leveraging existing
systems Increasing liability Providing security Adhering to taxation
rules
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EBUSINESS BENEFITS AND CHALLENGES
• 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
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EGOVERNMENT AND MCOMMERCE
• Mobile commerce - the ability to purchase goods and services through a wireless Internet-enabled device