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The Internet and E-Business

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This unit is designed to for students to investigate for rise of the internet and
how businesses can utilise it to increase returns.

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1.1 Understand the difference between doing business with an individual and business to
Business
1.2 Describe the benefits of an online presence for a specific business
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2.1 Describe the central
2.2 Describe the benefits of email as opposed to traditional mail.
2.3 Explain the basics of HTML
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3.1 Understand the ways in which a business can sell its products through the internet.
3.2 Explain ways in which the internet can be used other than to generate revenue.
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4.1 Describe the parts of a web page that search engines will most likely utilize
4.2 Understand the features of a web page that appeal to the visitor
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A Title: E-Business and E-commerce
A uthor: David Chaffey
A
ublisher:
earsons Education Ltd

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A Homework assignments
±
roblem sets & hands-on assignments (10%)
±
resentation(15%)
A Class participation (5%)
A
ersonal assignment submission (70%)
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THE is dedicated to safeguarding the quality of qualifications. Comprehensive
internal and external moderation system are used to ensure the yardstick of
coursework submitted is to an appropriate standard. To view the full moderation
process go to $$$#)# 
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n abstract of your answer required
âA nswers must be clear and consistent
âA Majority of assignments should be own words
âA Explore and be critical (constructive and supportive) of researched information
âA Supporting evidence to the theories stated must be provided
âA Conclusion given must be that clearly stated and should give the outcome of
âresearch findings
âA sk a friend/relative to proof read before submitting the essay
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lagiarise, There are methods of detecting plagiarism i.e. Turn it in
Use words that could appear offensive or jargon
Give unnecessary criticism
Forget to answer the initial question (keep referring to the learning outcomes to make sure
you are on the right track)
Use only one resource (it is best to use a selection of resources as some may be biased or
incorrect)
Give a personal opinion without backing it up with referenced evidence. VERY
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network consists of 2 or more computers connected together, and they can

communicate and share resources (e.g. information/data/hardware/email
etc)

computer network is a communication network in which nodes are computers.

The purpose of the network is to serve users, which can be humans or processes.
Information exchanged can be represented in multiple media (audio, text, video,
images, etc.)
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A Business pplications
± resource sharing
± Servers, Clients
± communication medium: e-mail (electronic mail), videoconferencing
± e-commerce (electronic commerce)
A Home pplications
± ccess to remote information: surfing the World Wide Web for information or just
for fun.
±
erson-to-person communication /peer-to-peer communication (there are no
fixed clients and servers): E-mail , chat room, electronic gambling, using the
Internet to carry telephone calls, video phone, and Internet radio, telelearning.
± Interactive entertainment: video on demand , Live television .
± Electronic commerce: Home shopping, n-line auctions.
A Mobile Users
± Mobile computers, such as notebook computers and personal digital assistants
(
D s)/ wireless networks : to send and receive telephone calls, faxes, and
electronic mail, surf the Web, access remote files, and log on to remote
machines.
± m-commerce (mobile-commerce).
A Social Issues
±
olitics, Religion,
± Identity theft
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A n intranet is a private computer network that uses Internet
rotocol
technologies to securely share any part of an organization's information
or operational systems within that organization. 2





 



 






 






 

 


 
. Sometimes the term refers
only to the organization's internal website, but may be a more extensive
part of the organization's information technology infrastructure.
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n intranet can be understood as a private version of the Internet, or as a
private extension of the Internet confined to an organization. n intranet
is built from the same concepts and technologies used for the Internet,
such as client-server computing and the Internet
rotocol Suite
(TC
/I
).It is generally restricted to employees of the organization. n
organization's intranet does not necessarily have to provide access to
the Internet. When such access is provided it is usually through a
network gateway with a firewall, shielding the intranet from
unauthorized external access.
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A Increasingly, intranets' are being used to deliver tools and
applications, e.g., collaboration (to facilitate working in groups and
teleconferencing) or sophisticated corporate directories, sales and
customer relationship management tools, project management etc.,
to advance productivity.
A Intranets are also being used as corporate culture-change platforms
Intranet user-experience, editorial, and technology team¶s work
together to produce in-house sites.
A Most commonly, intranets are managed by the communications, HR
or CI departments of large organizations, or some combination of
these..
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I. With intranets, organizations can make more information available to

employees on a "pull" basis (i.e., employees can link to relevant
information at a time which suits them) rather than being deluged
indiscriminately by emails.

II. Business operations and management: Intranets are also being used
as a platform for developing and deploying applications to support
business operations and decisions across the internet worked
enterprise.

III.
romote common corporate culture: Every user is viewing the same
information within the Intranet. Enhance Collaboration: With
information easily accessible by all authorized users, teamwork is
enabled.
IV. Supports a distributed computing architecture: The intranet can also
be linked to a company¶s management information system, for
example a time keeping system.
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6 n extranet is a private network that uses Internet protocols and the
public telecommunication system to securely share part of a
business's information or operations with suppliers, vendors, partners,
customers, or other businesses.
6 n extranet can be viewed as part of a company's Intranet that is
extended to users outside the company.
6 The same benefits that Web technologies have brought to corporate
Intranets are now starting to accelerate business between businesses.
6 Extranets can be used to exchange large volumes of data, share
product catalogues, share news with trading partners, collaborate with
other companies on joint development efforts, jointly develop and
share training programs with other companies, provide or access
applications between companies, and much more.
6 Many people use extranets every day without realizing it--to track
packaged goods, order products from their suppliers or access
customer assistance from other companies
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First there was the Internet, which is available for everyone to use. Then
businesses got smart and started developing their own intranets that used the
same friendly Web interface but put up firewalls so that only employees could
see the information on the site. Finally, the extranet was created.
It finds itself somewhere in between²there's still a firewall, but you allow only
selected outsiders, such as business partners and customers, inside.
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âExtranets provide a safe way to allow transactional business-to-business activities and can save
your company some serious time and money.
âThe automotive industry uses extranets to cut down on its redundant ordering processes and keep
suppliers up to date on parts and design changes, allowing quicker response times to suppliers'
problems and questions.
âSuppliers can receive proposals, submit bids, provide documents, even collect payments through an
extranet site.
â n extranet has restricted (password-protected) access, so it may be connected directly to each
party's internal systems.
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The relationship between access to %, ,% and the @%

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A ndy Grove, Chairman of Intel, one of the early adopters of e-
commerce, has made a meteorological analogy with the Internet. He
says: Is the Internet a typhoon force, a ten times force, or is it a bit of
wind? r is it a force that fundamentally alters our business? (Grove,
1996)
A How many of you have purchased something on the Internet in the last
6 months?
A How many times have you used the Internet as an information source,
before buying offline?
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1% describes the process of buying, selling, transferring, or exchanging

products, services, and/or information via computer networks, including the Internet.
1& refers to a broader definition of e-commerce, not just the buying and
selling of goods and services, but also servicing customers, collaborating with business
partners, conducting e-learning, and processing electronic transactions.

 Electronic commerce can take several forms depending on the degree of

digitization (the transformation from physical to digital).

 The degree of digitization relates to:

 the product (service) sold
 the process
 the delivery agent (or intermediary).
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The distinction between buy-side and sell-side e-commerce

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Most e-commerce is done over the Internet. But EC can also be conducted on
private networks, such as




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), on local area networks
(L s) or wide area networks (W s)
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± Business to consumer (B2C)
± Business to business (B2B)
± Consumer to consumer (C2C)
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± Business to government (B2G)
± Mobile Commerce
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6 ffer directly to the customer an interface of activity,examples:nline book store

(e.g. amazon.com);nline car purchasing (e.g. automall.com):Booking and
purchase of airline tickets (e.g. ryanair.com) , egg
6 Correspond to retail sale i.e. Electronic storefront
6 nline advertising D nline service, i.e. Selling books, toys, computers,online stock trading
6 nline job markey, travel, real estate
6 new kind of B2C applications are the (&%

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A dvantages:
± llow company to extend existing services to customers
± llow company to increase its customers
± ffer a wider choice and allow cheaper prices
± May give to the company a worldwide visibility
± nline shops are accessible 22/7 (advertising online
A Disadvantages:
± Low order conversion rates
± High risk
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. Business ±to-business commerce conducted over the internet
B. Realize transactions needed to perform financial or commercial activities by
companies over the Internet, n example would be a company that uses a
network for ordering from its suppliers, receiving invoices and making payments.

Some typical applications:

± E-procurement
± E-Marketplace(websites where buyers and sellers come together to
communicate, exchange ideas, advertise, bid in auctions, conduct transactions,
and coordinate inventory and fulfillment)
A The turnover is much greater than that dealed with B2C applications
A There are varying business models depending on the key products and services
offered(transaction fees, advertising, software licensing etc)
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A dvantages:
± Help to automate communications between companies making them easier and
quicker
± llow to cut prices drastically
± Help in reducing mistakes
± Increases competition /globalization
± Financial opportunities
A Disadvantages:
± ften need legacy integration
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A Concern the consumers who run negotations with other consumers sometimes
utilizing as intermediary a company.Examples:Ebay; utotrader.com
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A dvantages
± llow consumers to interact directly among them
± Give to the consumers a new way of purchasing and selling services and goods
A Disadvantages
± Little earning capacity

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A E-Commerce with mobile devices (
D s, Cell
hones,
agers, etc.)
A Different than E-Commerce?
A o, but additional challenges:
± Security
± Usability
± Heterogeneous Technologies
± Business Model Issues
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A This category has not yet emerged.
A However, in the wake of a growth of both the 



 and


 
 
categories, governments may extend electronic
interaction to such areas as welfare payments and self-assessed tax returns

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 relational & product innovation to improve market reach and product range
A Customer development & e-marketing solutions

A E-business solutions to buy & sell services via Internet

A Customer service and support solutions

A @%±è 
 process & organizational innovation to improve production and management
A
roduct design and production solutions

A
rocurement and supply chain management

A Finance, online banking and accounting solutions

A eLearning solutions to upgrade employee skills

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Õ reduced advertising costs
Õ reduced delivery cost, notably for goods that can also be delivered
electronically
Õ reduced design and manufacturing cost
Õ improved market intelligence and strategic planning
Õ access to new markets
Õ customer involvement in product and service innovation
Õ more opportunity for niche marketing
Õ equal access to markets (i.e. for SMEs, larger corporations)

Companies are using the Web to:

A Buy parts and supplies from other companies, 24/7 trading
A Collaborate on sales promotions, and
A Do joint research.
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A Global accessibility and sales reach
A Widen the availability of information
A Closer relationship
A Enhance work integration up to the world level
A Free samples.
A Reduced cost.
A Media breaks.
A Time to market.
A Customer loyalty.
A Save time, movement, space and papers.

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. global choice
. global presence
B. quality of service
B. improved competitiveness
C. personalized products &
C. mass customization &
services
customerization
D. rapid response to needs
D. shorten or eradicate supply
chains E. substantial price reductions
E. substantial cost savings F. new products & services
F. novel business opportunities

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 The need for hiring or retraining of IT personal
 Set-up costs...
 Impact of staff... egative /positive
 Difficulty of changing processes; ongoing maintenance e.g. lack of
skill, security and protection concerns;
 Managing a 24/7 global marketplace response e.g. language,
demand
 Logistics: Means to provide goods/services to %place, time,
quantity, quality, price, language
 The importance of trust for e-business transactions

rofits uncertainty in the new global markets

erceived problems with internet security not seen with traditional
market
 Difficulty in gaining competitive advantages on the Internet

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Methods and role of physical security in e-business (Even though business is done online, the
building that houses the servers and computers must be protected and have limited access to employees and other
persons The room should contain a fire extinguisher in case of fire. The organization should have a fire plan in case
this situation arises)
e.g. c( i.e. passwords, )
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Methods and role of electronic security in e-business e.g. firewalls, anti-virus software
(1)digital Signatures(If a document has a digital signature on it, no one else is able to edit the information without
being detected. That way if it is edited, it may be adjusted for reliability after the fact. In order to use a digital
signature, one must use a combination of cryptography and a message digest. message digest is used to give the
document a unique value. That value is then encrypted with the sender¶s private key.)
(2)digital certificates(The point of a digital certificate is to identify the owner of a document. This way the receiver
knows that it is an authentic document. Companies can use these certificates in several different ways. They can be
used as a replacement for user names and passwords),

Impacts of national and international legislation e.g. staff training, taxation

In some countries some electronic business activities are regulated by the Federal
Trade Commission (FTC). These activities include the use of commercial e-mails,
online advertising and consumer privacy.. The Federal Trade Commission ct
regulates all forms of advertising, including online advertising, and states that
advertising must be truthful and non-deceptive.
  
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 Mobile computers,
such as notebook computers and personal digital assistants (
D s)/ wireless
networks : to send and receive telephone calls, faxes, and electronic mail, surf the
Web, access remote files, and log on to remote machines.




 
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 customer follow up system makes able to use the lifetime value
of your customers, so once you succeed to sell one of your products to a prospect and
deliver a great buying experience, you've won a customer for life. How is that possible?