2. 10.1

3. LEARNING OBJECTIVES DESCRIBE INTERNET, ITS CAPABILITIESDESCRIBE INTERNET, ITS CAPABILITIES IDENTIFY INTERNET BENEFITS TO ORGANIZATIONSIDENTIFY INTERNET BENEFITS TO ORGANIZATIONS DEMONSTRATE HOW INTERNET USED FOR ELECTRONIC COMMERCEDEMONSTRATE HOW INTERNET USED FOR ELECTRONIC COMMERCE* 10.2

4. LEARNING OBJECTIVES DEMONSTRATE HOW INTERNET TECHNOLOGY USED FOR INTRA- AND INTERORGANIZATIONAL ELECTRONIC BUSINESSDEMONSTRATE HOW INTERNET TECHNOLOGY USED FOR INTRA- AND INTERORGANIZATIONAL ELECTRONIC BUSINESS EXAMINE CHALLENGES OF INTERNET TO BUSINESS & SOCIETYEXAMINE CHALLENGES OF INTERNET TO BUSINESS & SOCIETY* 10.3

5. MANAGEMENT CHALLENGES THE INTERNETTHE INTERNET INTERNET & ELECTRONIC COMMERCEINTERNET & ELECTRONIC COMMERCE INTRANETS & ELECTRONIC BUSINESSINTRANETS & ELECTRONIC BUSINESS CHALLENGES & OPPORTUNITIESCHALLENGES & OPPORTUNITIES* 10.4

6. THE INTERNET BEGAN AS GOVERNMENT CONNECTION OF UNIVERSITIESBEGAN AS GOVERNMENT CONNECTION OF UNIVERSITIES INTERNET SERVICE PROVIDER (ISP): organization connected to Internet, leases temporary connections to subscribersINTERNET SERVICE PROVIDER (ISP): organization connected to Internet, leases temporary connections to subscribers NO ONE OWNS IT, NO FORMAL ORGANIZATIONNO ONE OWNS IT, NO FORMAL ORGANIZATION* 10.5

7. INTERNET CAPABILITIES E -MAIL: person -to-person messaging; document sharingE -MAIL: person -to-person messaging; document sharing USERNET NEWSGROUPS: electronic bulletin boards for discussion groupsUSERNET NEWSGROUPS: electronic bulletin boards for discussion groups LISTSERVs: e-mail list servers for discussion groupsLISTSERVs: e-mail list servers for discussion groups CHATTING: interactive conversationsCHATTING: interactive conversations TELNET: log on one computer, work on anotherTELNET: log on one computer, work on another FTP: transfer files from computer to computerFTP: transfer files from computer to computer GOPHERS: use menus to locate text materialGOPHERS: use menus to locate text material* 10.6

8. INTERNET ADDRESS 10.7 http://www.prenhall.com/laudon PROTOCOL FOR THE WEB PROTOCOL FOR THE WEB HOST COMPUTER DIRECTORY EXTENSION DOMAIN NAME

9. INTERNET TERMS HOME PAGE: WWW screen display welcomes user to organization’s pageHOME PAGE: WWW screen display welcomes user to organization’s page WEBMASTER: person in charge of Web siteWEBMASTER: person in charge of Web site UNIFORM RESOURCE LOCATOR (URL): address of specific Internet resourceUNIFORM RESOURCE LOCATOR (URL): address of specific Internet resource* 10.8

10. INTERNET TERMS HYPERTEXT TRANSPORT PROTOCOL (http): communications standard used to transfer Web pagesHYPERTEXT TRANSPORT PROTOCOL (http): communications standard used to transfer Web pages HYPERTEXT MARKUP LANGUAGE (HTML): popular programming language for creating Web sitesHYPERTEXT MARKUP LANGUAGE (HTML): popular programming language for creating Web sites* 10.9

11. SURFING THE NET SEARCH ENGINE: tool for locating specific sites or information on WWWSEARCH ENGINE: tool for locating specific sites or information on WWW PORTAL: point of entry to WWWPORTAL: point of entry to WWW “PUSH” TECHNOLOGY: server streams relevant content to browser“PUSH” TECHNOLOGY: server streams relevant content to browser MULTICASTING: sending data to select groupMULTICASTING: sending data to select group* 10.10

12. INTRANET INTERNAL NETWORKINTERNAL NETWORK WWW TECHNOLOGYWWW TECHNOLOGY FIREWALL: Security System to Prevent Invasion of Private NetworksFIREWALL: Security System to Prevent Invasion of Private Networks OVERCOMES COMPUTER PLATFORM DIFFERENCESOVERCOMES COMPUTER PLATFORM DIFFERENCES OFTEN INSTALLED ON EXISTING NETWORK INFRASTRUCTUREOFTEN INSTALLED ON EXISTING NETWORK INFRASTRUCTURE* 10.11

13. EXTRANET ALLOWS SELECT USERS OUTSIDE ORGANIZATION TO USE ITS INTRANET: CUSTOMERSCUSTOMERS BUSINESS PARTNERSBUSINESS PARTNERS VENDORSVENDORS* 10.12

14. EXTRANET 10.13

15. INTERNET BENEFITS GLOBAL CONNECTIVITYGLOBAL CONNECTIVITY REDUCED COMMUNICATIONS COSTREDUCED COMMUNICATIONS COST LOWER TRANSACTION COSTSLOWER TRANSACTION COSTS REDUCED AGENCY COSTSREDUCED AGENCY COSTS INTERACTIVITY, FLEXIBILITY, CUSTOMIZATIONINTERACTIVITY, FLEXIBILITY, CUSTOMIZATION ACCELERATED KNOWLEDGEACCELERATED KNOWLEDGE* 10.14

16. INTERNET & ELECTRONIC COMMERCE EASY TO LINK WITH OTHER BUSINESSES, CUSTOMERSEASY TO LINK WITH OTHER BUSINESSES, CUSTOMERS CAN UPDATE PRODUCT INFORMATION, ORDERING, CUSTOMER SUPPORTCAN UPDATE PRODUCT INFORMATION, ORDERING, CUSTOMER SUPPORT ON-LINE STOREFRONTSON-LINE STOREFRONTS ENHANCED BUSINESS FORMSENHANCED BUSINESS FORMS* 10.15

17. INTERNET & ELECTRONIC COMMERCE CUSTOMER-CENTERED RETAILINGCUSTOMER-CENTERED RETAILING –DISINTERMEDIATION: removal of intermediate layers streamlines process –REDUCED COST TO BUYER, SELLER HIT: each request for a file recorded in log fileHIT: each request for a file recorded in log file* 10.16

18. INTERNET BUSINESS MODELS VIRTUAL STOREFRONT: sells goods, services on-lineVIRTUAL STOREFRONT: sells goods, services on-line MARKETPLACE CONCENTRATOR: concentrates information from several providersMARKETPLACE CONCENTRATOR: concentrates information from several providers INFORMATION BROKER: provides product, pricing, availability informationINFORMATION BROKER: provides product, pricing, availability information* 10.17

19. INTERNET BUSINESS MODELS TRANSACTION BROKER: buyers view rates, terms from various sourcesTRANSACTION BROKER: buyers view rates, terms from various sources ELECTRONIC CLEARINGHOUSE: auction-like setting, products, prices, change in response to demandELECTRONIC CLEARINGHOUSE: auction-like setting, products, prices, change in response to demand REVERSE AUCTION: buyer sets price, submits to multiple sellersREVERSE AUCTION: buyer sets price, submits to multiple sellers* 10.18

20. INTERNET BUSINESS MODELS DIGITAL PRODUCT DELIVERY: sell, download software, other digital productsDIGITAL PRODUCT DELIVERY: sell, download software, other digital products CONTENT PROVIDER: creates revenue through providing client for a fee, and advertisingCONTENT PROVIDER: creates revenue through providing client for a fee, and advertising ON-LINE SERVICE PROVIDER: provides service, support for hardware, software productsON-LINE SERVICE PROVIDER: provides service, support for hardware, software products* 10.19

21. ELECTRONIC COMMERCE SUPPORT SYSTEMS WEB HOSTING SERVICES: provides large servers for Web sites of fee-paying customerWEB HOSTING SERVICES: provides large servers for Web sites of fee-paying customer ELECTRONIC PAYMENT SYSTEM: using Web for electronic funds transfers, credit, smart & debit cardsELECTRONIC PAYMENT SYSTEM: using Web for electronic funds transfers, credit, smart & debit cards* 10.20

22. INTRANETS AND ELECTRONIC BUSINESS ELECTRONIC COMMERCE SERVERSELECTRONIC COMMERCE SERVERS BENEFITSBENEFITS GROUP COLLABORATIONGROUP COLLABORATION FUNCTIONAL APPLICATIONSFUNCTIONAL APPLICATIONS SUPPLY CHAIN MANAGEMENTSUPPLY CHAIN MANAGEMENT* 10.21

23. ELECTRONIC COMMERCE SERVERS: ICAT: on-line catalog shopping, order placement (Icat)ICAT: on-line catalog shopping, order placement (Icat) NET.COMMERCE: merchant server supporting Secure Electronic Transactions protocol (IBM)NET.COMMERCE: merchant server supporting Secure Electronic Transactions protocol (IBM) MerchantXpert:: search tools, order management, tax, payment, logistics modules (Netscape)MerchantXpert:: search tools, order management, tax, payment, logistics modules (Netscape)* 10.22

24. ELECTRONIC COMMERCE SERVICES: OPEN MARKET TRANSACT: customer authentication, order & payment processing, tax, multi- language customer service (Open Market)OPEN MARKET TRANSACT: customer authentication, order & payment processing, tax, multi- language customer service (Open Market) INTERNET COMMERCE SERVER: integrates orders, inventory, customer service, payments (Oracle)INTERNET COMMERCE SERVER: integrates orders, inventory, customer service, payments (Oracle)* 10.23

25. BENEFITS OF INTRANETS: CONNECTIVITYCONNECTIVITY CAN BE TIED TO LEGACY SYSTEM & TRANSACTION PROCESSINGCAN BE TIED TO LEGACY SYSTEM & TRANSACTION PROCESSING INTERACTIVE APPLICATIONS WITH TEXT, AUDIO, VIDEOINTERACTIVE APPLICATIONS WITH TEXT, AUDIO, VIDEO SCALABLE TO LARGER OR SMALLER SYSTEMS AS REQUIREDSCALABLE TO LARGER OR SMALLER SYSTEMS AS REQUIRED* 10.24

26. BENEFITS OF INTRANETS: EASY TO USE BROWSER INTERFACEEASY TO USE BROWSER INTERFACE LOW START-UP COSTSLOW START-UP COSTS RICH, RESPONSIVE INFORMATION ENVIRONMENTRICH, RESPONSIVE INFORMATION ENVIRONMENT REDUCED INFORMATION DISTRIBUTION COSTSREDUCED INFORMATION DISTRIBUTION COSTS* 10.25

27. GROUP COLLABORATION: TEAMWARE: intranet-based applications allow teams to share ideas, documents, brainstorming, scheduling. Similar to chat room.TEAMWARE: intranet-based applications allow teams to share ideas, documents, brainstorming, scheduling. Similar to chat room. INTERNAL NEWSLETTERINTERNAL NEWSLETTER ABILITY TO WORK AT HOMEABILITY TO WORK AT HOME SHARE INTERNET DISCOVERIES WITH COLLEAGUESSHARE INTERNET DISCOVERIES WITH COLLEAGUES* 10.26

28. FUNCTIONAL APPLICATIONS: FINANCE & ACCOUNTINGFINANCE & ACCOUNTING HUMAN RESOURCESHUMAN RESOURCES SALES & MARKETINGSALES & MARKETING MANUFACTURING & PRODUCTIONMANUFACTURING & PRODUCTION* 10.27

29. FINANCE & ACCOUNTING: GENERAL LEDGER REPORTINGGENERAL LEDGER REPORTING PROJECT COSTINGPROJECT COSTING ANNUAL REPORTSANNUAL REPORTS BUDGETINGBUDGETING* 10.28

30. HUMAN RESOURCES: CORPORATE POLICIESCORPORATE POLICIES EMPLOYEE SAVINGS PLANSEMPLOYEE SAVINGS PLANS BENEFITS ENROLLMENTBENEFITS ENROLLMENT ON-LINE TRAININGON-LINE TRAINING JOB POSTINGJOB POSTING* 10.29

31. SALES & MARKETING: COMPETITOR ANALYSISCOMPETITOR ANALYSIS PRICE UPDATESPRICE UPDATES PROMOTIONAL CAMPAIGNSPROMOTIONAL CAMPAIGNS SALES PRESENTATIONSSALES PRESENTATIONS SALES CONTRACTSSALES CONTRACTS* 10.30

32. MANUFACTURING & PRODUCTION : QUALITY MEASUREMENTSQUALITY MEASUREMENTS MAINTENANCE SCHEDULESMAINTENANCE SCHEDULES DESIGN SPECIFICATIONSDESIGN SPECIFICATIONS MACHINE OUTPUTMACHINE OUTPUT ORDER TRACKINGORDER TRACKING* 10.31

33. SUPPLY-CHAIN MANAGEMENT 10.32

34. CHALLENGES & OPPORTUNITIES UNPROVEN BUSINESS MODELSUNPROVEN BUSINESS MODELS BUSINESS PROCESS CHANGE REQUIREMENTSBUSINESS PROCESS CHANGE REQUIREMENTS CHANNEL CONFLICTSCHANNEL CONFLICTS TECHNOLOGY HURDLESTECHNOLOGY HURDLES LEGAL ISSUESLEGAL ISSUES SECURITY & PRIVACYSECURITY & PRIVACY* 10.33

35. Connect to the INTERNET PRESS LEFT MOUSE BUTTON ON ICON TO CONNECT TO THE LAUDON & LAUDON WEB SITE FOR MORE INFORMATION ON THIS CHAPTER 10.34

36. 10.35