2.  A group of two or more computers linked by cable or telephone lines. Workstation Connecting Hub Server

3.  A group of two or more networks Workstation Server Workstation Server

4.  User in one network making business transactions with another network Workstation Server Workstation Home Network Sales Company

5.  E-Commerce: Buying and selling products and services on the Internet  E-Business: The broader spectrum of business activities that are conducted over the Internet

6.  Increased sales opportunities  Decreased transaction costs  Operate 24/7  Reach narrow market segments which are widely distributed geographically  Access to global markets  Increased speed and accuracy of information  Bring together buyers and sellers in one marketplace

7.  Wider product availability  Customized and personalized information and buying options  Shop 24/7  Easy comparison shopping and one-stop shopping  Access to global marketplaces  Quick delivery of digital products

8.  Rapidly changing technology  Insufficient telecommunications capacity or bandwidth  Difficulty integrating with existing systems  Problems maintaining security and reliability  Global market issues: language, politics, currency conversions  Conflicted legal environment  Shortage of skilled technical employees

9.  Concern over transaction security and privacy  Lack of trust when dealing with unfamiliar sellers  Desire to touch and feel products before purchase  Resistance to unfamiliar buying processes, paperless transactions, electronic money

10. ModelDescriptionExample B2CBusiness-to-Consumer: Business which sells directly to consumers amazon.com eDiets.com B2BBusiness-to-Business Business which sells to other businesses, or which brings together businesses in a common marketplace HoustonStreet.com Chemdex (out of business) B2GBusiness-to-Government Business which sells to government agencies iGov.com C2CConsumer-to-Consumer Consumers which sell directly to other consumers eBay.com C2BConsumer-to-Business Consumers name prices which business can accept or decline. priceline.com