1.  2001 Prentice Hall, Inc. All rights reserved. 1 Chapter 1, Introduction to e-Business and e-Commerce Outline 1.1Introduction: Transitioning to the Web 1.2History of the Internet 1.3History of the Web 1.4Internet and World Wide Web Development 1.5e-Business and e-Commerce Overview 1.6A Word of Caution

2.  2001 Prentice Hall, Inc. All rights reserved. 2 1.1 Introduction: Transitioning to the Web The Internet has changed the way people communicate, conduct business and manage their daily lives Technologies reviewed Resources used

3.  2001 Prentice Hall, Inc. All rights reserved. 3 1.2 History of the Internet Advanced Research Projects Agency of the Department of Defense (ARPA) –Implemented the ARPAnet, the grandparent of today’s Internet Packet switching –Digital data is sent in small packages called packets Packets –Contain data, address information, error-control information and sequencing information Transmission Control Protocol (TCP) –ensures that messages are properly routed from sender to receiver and that those messages arrived intact

4.  2001 Prentice Hall, Inc. All rights reserved. 4 1.2 History of the Internet Internetworking Protocol (IP) –Enabled the intercommunication of inter-organization and intra-organization networks The Internet was initially limited to universities and research institutions Bandwidth –The information carrying capacity of communications lines

5.  2001 Prentice Hall, Inc. All rights reserved. 5 1.3 History of the World Wide Web World Wide Web –Locate and view multimedia-based documents on almost any subject –Makes information instantly and conveniently accessible worldwide –Possible for individuals and small businesses to get worldwide exposure –Changing the way business is done

6.  2001 Prentice Hall, Inc. All rights reserved. 6 1.4 Internet and World Wide Web Development Computer use is increasing in almost every field of endeavor Dramatic decrease in the cost of computing Enhanced multimedia capabilities Increased publishing and learning opportunities Enhanced communication technologies

7.  2001 Prentice Hall, Inc. All rights reserved. 7 1.5 e-Business and e-Commerce Overview Successful e-businesses are those that recognize the needs of their target audiences and match those needs with relevant content Seasoned professionals and young entrepreneurs e-Commerce –Involves exchanges among customers, business partners and the vendor e-Business –Includes operations that are handled within the business itself

8.  2001 Prentice Hall, Inc. All rights reserved. 8 1.5 e-Business and e-Commerce Overview Intense competition Businesses must adjust to new technologies and implement new systems Customized production capabilities Finding and keeping key employees 24-by-7 maintenance responsibilities Must be reliable, fast, functional and user friendly Brick-and-mortar businesses –Businesses that have only a physical presence Click-and-mortar businesses –Businesses that have both an online and an offline presence

9.  2001 Prentice Hall, Inc. All rights reserved. 9 1.5 e-Business and e-Commerce Overview Virtual office –All communications are conducted via phone, voice mail, fax, e-mail and the emerging capabilities of the Internet Personalization –Tailoring Web pages to users’ individual preferences and letting users bypass irrelevant content Copyright infringement Privacy invasion –The sale of personal data to another organization without the consumer’s knowledge –Tracking of Internet activity –Unauthorized access to credit-card numbers, medical history and criminal history

10.  2001 Prentice Hall, Inc. All rights reserved. 10 1.5 Campusfoods.com Feature Campusfoods.com Developed by students at the University of Pennsylvania Serves approximately 150 colleges and universities around the United States Built on investments made by private investors, family members and friends Revenue is generated by a percentage taken from transaction fees

11.  2001 Prentice Hall, Inc. All rights reserved. 11 1.5 Campusfoods.com Feature Campusfoods.com home page. (Courtesy of Campusfoods.com.)

12.  2001 Prentice Hall, Inc. All rights reserved. 12 1.6 A Word of Caution Avoid –Poor management –Ineffective marketing –Ill-designed logistics –Unrealistic expectations Recognize the difficulty of finding funding and going public Finding space Hiring employees