Chapter 1, Introduction to e-Business and e-Commerce

Outline 1.1 1.2 1.3 1.4 1.5 1.6 Introduction: Transitioning to the Web History of the Internet History of the Web Internet and World Wide Web Development e-Business and e-Commerce Overview A Word of Caution

2001 Prentice Hall, Inc. All rights reserved.

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

2001 Prentice Hall, Inc. All rights reserved.

1.2 History of the Internet

Advanced Research Projects Agency of the Department of Defense (ARPA)
Implemented the ARPAnet, the grandparent of todays 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
2001 Prentice Hall, Inc. All rights reserved.

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

2001 Prentice Hall, Inc. All rights reserved.

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

2001 Prentice Hall, Inc. All rights reserved.

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

2001 Prentice Hall, Inc. All rights reserved.

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

2001 Prentice Hall, Inc. All rights reserved.

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
2001 Prentice Hall, Inc. All rights reserved.

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 consumers knowledge Tracking of Internet activity Unauthorized access to credit-card numbers, medical history and criminal history
2001 Prentice Hall, Inc. All rights reserved.

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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

2001 Prentice Hall, Inc. All rights reserved.

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1.5 Campusfoods.com Feature

Campusfoods.com home page. (Courtesy of Campusfoods.com.)

2001 Prentice Hall, Inc. All rights reserved.

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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

2001 Prentice Hall, Inc. All rights reserved.