2LEARNING OUTCOMESDescribe the four common tools an organization can use to access Internet informationCompare ISPs, OSPs, and ASPs. Be sure to include an overview of common services provided by eachDescribe how marketing, sales, financial services, and customer service departments can use ebusiness to increase revenues or reduce costs
3LEARNING OUTCOMESExplain why an organization would use metrics to determine a Web site’s successIdentify the different types of egovernment business modelsDefine m-commerce and explain how an egovernment could use it to increase its efficiency and effectiveness
4INTRODUCTIONPure play – an Internet retailer that has no physical store, such as Expedia.com and Amazon.comEbusiness – conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partnersEbusiness model – an approach to conducting electronic business through which a company can become a profitable business on the Internet
5Accessing Internet Information Four tools for accessing Internet informationIntranet – internalized portion of the Internet, protected from outside access, for employeesExtranet – an intranet that is available to strategic alliesPortal – Web site that offers a broad array of resources and servicesKiosk – publicly accessible computer system that allows interactive information browsing
6Providing Internet Information Three common forms of service providersInternet service provider (ISP) –provides individuals and other companies access to the InternetOnline service provider (OSP) – offers an extensive array of unique Web servicesApplication service provider (ASP) – offers access over the Internet to systems and related services that would otherwise have to be located in organizational computers
7Providing Internet Information Common ISP services include:Web hostingHard-disk storage spaceAvailabilitySupport
8Providing Internet Information Wireless Internet service provider (WISP)
9Providing Internet Information ISPs, OSPs, and ASPs use service level agreements (SLA) which define the specific responsibilities of the service provider and set the customer expectationsReview Figure B11.3 for a listing of the top ISPs, OSPs, and ASPs
10Organizational Strategies for Ebusiness Primary business areas taking advantage of ebusiness include:Marketing/salesFinancial servicesProcurementCustomer serviceIntermediaries
11MARKETING/SALES Generating revenue on the Internet: Online ad (banner ad) - box running across a Web page that contains advertisementsPop-up ad - a small Web page containing an advertisementAssociate programs (affiliate programs) - businesses generate commissions or royaltiesViral marketing - a technique that induces Web sites or users to pass on a marketing messageMass customization - gives customers the opportunity to tailor products or services
12MARKETING/SALES Generating revenue on the Internet: Personalization - occurs when a Web site can fashion offers that are more likely to appeal to that personBlog - Web site in which items are posted on a regular basis and displayed in reverse chronological orderReal simple syndications (RSS) - a Web feed format used for Web syndication of contentPodcasting - the distribution of audio or video files, such as radio programs or music videos, over the Internet to play on mobile devices
13MARKETING/SALES Generating revenue on the Internet: Search engine optimization (SEO) - a set of methods aimed at improving the ranking of a Web site in search engine listingsSpamdexing - uses a variety of deceptive techniques in an attempt to manipulate search engine rankings, whereas legitimate SEO focuses on building better sites and using honest methods of promotion
14FINANCIAL SERVICES Online consumer payments include: Financial cybermediaryElectronic checkElectronic bill presentment and payment (EBPP)Digital wallet
15FINANCIAL SERVICES Online business payments include: Electronic data interchange (EDI)Value-added network (VAN)Financial EDI (financial electronic data interchange)
17PROCURMENTMaintenance, repair, and operations (MRO) materials (also called indirect materials) – materials necessary for running an organization but do not relate to the company’s primary business activitiesEprocurement - the B2B purchase and sale of supplies and services over the InternetElectronic catalog - presents customers with information about goods and services offered for sale, bid, or auction on the Internet
18CUSTOMER SERVICECustomer service is the business process where the most human contact occurs between a buyer and a sellerEbusiness strategists are finding that customer service via the Web is one of the most challenging and potentially lucrative areas of ebusinessThe primary issue facing customer service departments using ebusiness is consumer protection
21INTERMEDIARIESIntermediaries – agents, software, or businesses that bring buyers and sellers together that provide a trading infrastructure to enhance ebusinessReintermediation – using the Internet to reassemble buyers, sellers, and other partners in a traditional supply chain in new ways
22Measuring Ebusiness Success Most companies measure the traffic on a Web site as the primary determinant of the Web site’s successHowever, a large amount of Web site traffic does not necessarily equate to large salesMany organizations with high Web site traffic have low sales volumes
23Measuring Ebusiness Success Web site traffic analysis can include:CookieClick-throughBanner adInteractivity
24Behavioral MetricsClickstream data tracks the exact pattern of a consumer’s navigation through a Web siteClickstream data can reveal:Number of pageviewsPattern of Web sites visitedLength of stay on a Web siteDate and time visitedNumber of customers with shopping cartsNumber of abandoned shopping carts
25Behavioral Metrics Web site metrics include Visitor metrics Exposure metricsVisit metricsHit metrics
26New Trends in Ebusiness: Egovernment and Mcommerce Egovernment - involves the use of strategies and technologies to transform government(s) by improving the delivery of services and enhancing the quality of interaction between the citizen-consumer within all branches of government
27New Trends in Ebusiness: Egovernment and Mcommerce
28New Trends in Ebusiness: Egovernment and Mcommerce Mobile commerce - the ability to purchase goods and services through a wireless Internet-enabled device.
29CLOSING CASE ONE Mail with PostalOne United States Postal Service’s (USPS) productivity has grown by only 11 percent over the past three decadesUSPS is pursuing several ebusiness projects to help increase growth including:NetPost Mailing OnlinePost Electronic Courier ServiceNetPost.CertifiedEBillPay
30CLOSING CASE ONE QUESTIONS Do you think the USPS’s steps are far-reaching enough to ensure its relevance in ebusiness?What other strategic alliances, akin to its partnership with CheckFree, can the Postal Service develop to stay competitive?Why would the USPS compete in a market that private companies already serve well?
31CLOSING CASE ONE QUESTIONS How can the USPS use portals to help grow its business?How can the USPS use ebusiness sales and marketing techniques such as blogs, podcasts, and SEO to improve its business?How can the USPS use ASPs to improve its business?
32CLOSING CASE TWO Made-To-Order Businesses Mass customization is a new trend in the retail businessLands’ End, Nike, and Stamps.com are a few of the companies using mass customization to enhance the way they do business
33CLOSING CASE TWO QUESTIONS What role does ebusiness play in a mass customization business strategy?How can Lands’ End use additional sales and marketing ebusiness techniques to improve its business?How can Nike use ebusiness financial services to improve its business?
34CLOSING CASE TWO QUESTIONS How can Stamps.com use ASPs and electronic bill payment to improve its business?Choose one of the examples above and analyze its ebusiness approach. Would you invest $20,000 in the company?Choose one of the examples above and explain how the company is attempting to gain a competitive advantage with mass customization and personalization. How could this company use podcasts, blogs, and SEO to improve its business?