B11-2 LEARNING OUTCOMES 1.Describe the four common tools an organization can use to access Internet information 2.Compare ISPs, OSPs, and ASPs. Be sure to include an overview of common services provided by each 3.Describe how marketing, sales, financial services, and customer service departments can use ebusiness to increase revenues or reduce costs
B11-3 LEARNING OUTCOMES 4.Explain why an organization would use metrics to determine a Web site’s success 5.Identify the different types of egovernment business models 6.Define m-commerce and explain how an egovernment could use it to increase its efficiency and effectiveness
B11-4 INTRODUCTION Pure play – an Internet retailer that has no physical store, such as Expedia.com and Amazon.com Ebusiness – conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners Ebusiness model – an approach to conducting electronic business through which a company can become a profitable business on the Internet
B11-5 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 – Web site that offers a broad array of resources and services 4.Kiosk – publicly accessible computer system that allows interactive information browsing
B11-6 Providing Internet Information Three common forms of service providers 1.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
B11-7 Providing Internet Information Common ISP services include: –Web hosting –Hard-disk storage space –Availability –Support
B11-8 Providing Internet Information Wireless Internet service provider (WISP)
B11-9 Providing Internet Information ISPs, OSPs, and ASPs use service level agreements (SLA) which define the specific responsibilities of the service provider and set the customer expectations Review Figure B11.3 for a listing of the top ISPs, OSPs, and ASPs
B11-10 Organizational Strategies for Ebusiness Primary business areas taking advantage of ebusiness include: –Marketing/sales –Financial services –Procurement –Customer service –Intermediaries
B11-11 MARKETING/SALES Generating revenue on the Internet: –Online ad (banner ad) - box running across a Web page that contains advertisements –Pop-up ad - a small Web page containing an advertisement –Associate programs (affiliate programs) - businesses generate commissions or royalties –Viral marketing - a technique that induces Web sites or users to pass on a marketing message –Mass customization - gives customers the opportunity to tailor products or services
B11-12 MARKETING/SALES Generating revenue on the Internet: –Personalization - occurs when a Web site can fashion offers that are more likely to appeal to that person –Blog - Web site in which items are posted on a regular basis and displayed in reverse chronological order –Real simple syndications (RSS) - a Web feed format used for Web syndication of content –Podcasting - the distribution of audio or video files, such as radio programs or music videos, over the Internet to play on mobile devices
B11-13 MARKETING/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 listings –Spamdexing - 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
B11-14 FINANCIAL SERVICES Online consumer payments include: –Financial cybermediary –Electronic check –Electronic bill presentment and payment (EBPP) –Digital wallet
B11-15 FINANCIAL SERVICES Online business payments include: –Electronic data interchange (EDI) Value-added network (VAN) –Financial EDI (financial electronic data interchange)
B11-17 PROCURMENT Maintenance, 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 activities –Eprocurement - the B2B purchase and sale of supplies and services over the Internet –Electronic catalog - presents customers with information about goods and services offered for sale, bid, or auction on the Internet
B11-18 CUSTOMER SERVICE Customer service is the business process where the most human contact occurs between a buyer and a seller Ebusiness strategists are finding that customer service via the Web is one of the most challenging and potentially lucrative areas of ebusiness The primary issue facing customer service departments using ebusiness is consumer protection
B11-21 INTERMEDIARIES Intermediaries – agents, software, or businesses that bring buyers and sellers together that provide a trading infrastructure to enhance ebusiness Reintermediation – using the Internet to reassemble buyers, sellers, and other partners in a traditional supply chain in new ways
B11-22 Measuring Ebusiness Success Most companies measure the traffic on a Web site as the primary determinant of the Web site’s success However, a large amount of Web site traffic does not necessarily equate to large sales Many organizations with high Web site traffic have low sales volumes
B11-23 Measuring Ebusiness Success Web site traffic analysis can include: –Cookie –Click-through –Banner ad –Interactivity
B11-24 Behavioral Metrics Clickstream data tracks the exact pattern of a consumer’s navigation through a Web site Clickstream data can reveal: –Number of pageviews –Pattern of Web sites visited –Length of stay on a Web site –Date and time visited –Number of customers with shopping carts –Number of abandoned shopping carts
B11-25 Behavioral Metrics Web site metrics include –Visitor metrics –Exposure metrics –Visit metrics –Hit metrics
B11-26 New 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
B11-27 New Trends in Ebusiness: Egovernment and Mcommerce
B11-28 New Trends in Ebusiness: Egovernment and Mcommerce Mobile commerce - the ability to purchase goods and services through a wireless Internet-enabled device.
B11-29 CLOSING CASE ONE Mail with PostalOne United States Postal Service’s (USPS) productivity has grown by only 11 percent over the past three decades USPS is pursuing several ebusiness projects to help increase growth including: –NetPost Mailing Online –Post Electronic Courier Service –NetPost.Certified –EBillPay
B11-30 CLOSING CASE ONE QUESTIONS 1.Do you think the USPS’s steps are far- reaching enough to ensure its relevance in ebusiness? 2.What other strategic alliances, akin to its partnership with CheckFree, can the Postal Service develop to stay competitive? 3.Why would the USPS compete in a market that private companies already serve well?
B11-31 CLOSING CASE ONE QUESTIONS 4.How can the USPS use portals to help grow its business? 5.How can the USPS use ebusiness sales and marketing techniques such as blogs, podcasts, and SEO to improve its business? 6.How can the USPS use ASPs to improve its business?
B11-32 CLOSING CASE TWO Made-To-Order Businesses Mass customization is a new trend in the retail business Lands’ End, Nike, and Stamps.com are a few of the companies using mass customization to enhance the way they do business
B11-33 CLOSING CASE TWO QUESTIONS 1.What role does ebusiness play in a mass customization business strategy? 2.How can Lands’ End use additional sales and marketing ebusiness techniques to improve its business? 3.How can Nike use ebusiness financial services to improve its business?
B11-34 CLOSING CASE TWO QUESTIONS 4.How can Stamps.com use ASPs and electronic bill payment to improve its business? 5.Choose one of the examples above and analyze its ebusiness approach. Would you invest $20,000 in the company? 6.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?