The Internet in Business: Corporations, Businesses, and Entrepreneurs Topic 6 Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

OBJECTIVES Discuss the pervasiveness and inevitability of business on the Internet Explain how money factors, especially advertising, affect the Web Describe the likely success factors for Web entrepreneurs Differentiate between business-to-Consumer and Business-to-Business sites Differentiate between intranets, extranets and virtual private networks Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Contents E-Commerce Web-based Business Sharing Files Push Technology / Webcasting Intranets VPN Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Buying and selling over the Internet E-Commerce Electronic Commerce Buying and selling over the Internet Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

E-Commerce Retail Sites Retail becomes etail Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

E-Commerce Retail Sites Clothes Out-of-print biography Used car Bargain airline tickets Music CDs Videos Baby equipment Jewelry Sporting goods Office supplies Cosmetics Flowers Gifts Groceries What’s for Sale? EVERYTHING! Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Etail Advantage to Consumer Any time No need to dress and travel Saves time Provides simple means to comparison-shop Anyplace Contributes to competition Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Etail Savings to retail business No physical store building People time Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

The Commerce Site Lists and views of products and prices Content Product related Updated regularly Written to interest visitors in returning to site to purchase in the future Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Commerce vs. Content Sites Commerce adding content Content adding products and sales information Division is no longer clear Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

E-Commerce Acceptance Opposition to e-Commerce by in-person sales representatives Strategy to merge Etail and Retail Web site prices may be higher Commission to sales representative on each Internet transaction regardless of their involvement with its origin Web site marketing followed by local store purchase Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

E-Commerce Acceptance Successful web site may alienate others Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Advertising Pay a fee to the host site Disadvantage of online Ads Contain graphics and applets that load slowly Ads load first Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Advertising Types of Online Ads Banner ads Clickable Users reluctant to click through Live banner Content updates in real time Employ animation together with multimedia element Work slowly Expensive to develop Context-sensitive Ad is related to subject matter on web page Greater click through Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Example of Context-sensitive Ads Faculty of Business, Finance, and Hospitality School of Business

Web-based Business Simple to start-up of new businesses Provides access to people and global markets Minimum investment Server link Home page Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Web-based Business Make business look large Many products can be offered since no inventory No physical space to reflect size Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Payments Finalize order by Enter credit card number Security Phone Fax Call with credit card number Enter credit card number Security Communication between buyer and retailer is encrypted Use SSL (Secure Sockets Layer) protocol and generate the message “our secure server” Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Success Factors Making a Profit Content What you have to say and offer Cannot be static News about product, scores, contest, searches Uniqueness Not offered elsewhere Difficult to obtain Self-help Search for product Order product Check the status of an order Track a delivery Community Provide sense of community Sharing between visitors Prizes Repeat business needed Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

B2C Business-to-Consumer Activity between business and individual User makes purchase based upon personal decisions Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

B2B Business-to-Business Activity of one business providing another with materials and supplies Advantages to buyers Reduced costs of procurement Consider a larger number of suppliers Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Sharing Files Unicasting Send multiple computers copies of files individually Wastes bandwidth as you are sending the same file over and over Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Sharing Files Broadcast Multicasting Send one copy of the file to every computer on the network Wasteful – some users do not need the file Multicasting Send one copy of the file and it is directed only to the appropriate recipients Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Push Technology Webcasting Software that send (pushes) information from the Internet to a user’s PC Makes business active participants in providing information to users Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Intranet, Extranet, Internet Private Can be linked to Internet Extranet Provide access to Intranet to selected customer and suppliers Internet Public Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

VPN Virtual Private Networks Use public Internet as a channel for private data communication Use the Internet to access the company network rather than private lines Sharing public lines Lower cost Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

VPN Benefits Lower operating costs Simplifies communications Reduces in-house management responsibilities Communication needs handled by ISP Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida