The Internet in Business: Corporations, Businesses, and Entrepreneurs

The Internet in Business:Corporations, Businesses, and Entrepreneurs Topic 6 Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

OBJECTIVES • Discuss the pervasiveness and inevitability of business on the Internet • Explain how money factors, especially advertising, affect the Web • Describe the likely success factors for Web entrepreneurs • Differentiate between business-to-Consumer and Business-to-Business sites • Differentiate between intranets, extranets and virtual private networks Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Contents • E-Commerce • Web-based Business • Sharing Files • Push Technology / Webcasting • Intranets • VPN Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

E-Commerce Electronic Commerce Buying and selling over the Internet Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

E-CommerceRetail Sites Retail becomes etail Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Clothes Out-of-print biography Used car Bargain airline tickets Music CDs Videos Baby equipment Jewelry Sporting goods Office supplies Cosmetics Flowers Gifts Groceries E-CommerceRetail Sites What’s for Sale? EVERYTHING! Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

EtailAdvantage to Consumer • Any time • No need to dress and travel • Saves time • Provides simple means to comparison-shop • Anyplace • Contributes to competition Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

EtailSavings to retail business No physical store building People time Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

The Commerce Site • Lists and views of products and prices • Content • Product related • Updated regularly • Written to interest visitors in returning to site to purchase in the future Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Commerce vs. Content Sites • Commerce adding content • Content adding products and sales information • Division is no longer clear Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

E-Commerce Acceptance • Opposition to e-Commerce by in-person sales representatives • Strategy to merge Etail and Retail • Web site prices may be higher • Commission to sales representative on each Internet transaction regardless of their involvement with its origin • Web site marketing followed by local store purchase Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

E-Commerce Acceptance Successful web site may alienate others Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Advertising • Pay a fee to the host site • Disadvantage of online Ads • Contain graphics and applets that load slowly • Ads load first Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

AdvertisingTypes of Online Ads • Banner ads • Clickable • Users reluctant to click through • Live banner • Content updates in real time • Employ animation together with multimedia element • Work slowly • Expensive to develop • Context-sensitive • Ad is related to subject matter on web page • Greater click through Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Example of Context-sensitive Ads Faculty of Business, Finance, and Hospitality School of Business

Web-based Business • Simple to start-up of new businesses • Provides access to people and global markets • Minimum investment • Server link • Home page Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Web-based Business • Make business look large • Many products can be offered since no inventory • No physical space to reflect size Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Payments • Finalize order by • Phone • Fax • Call with credit card number • Enter credit card number • Security • Communication between buyer and retailer is encrypted • Use SSL (Secure Sockets Layer) protocol and generate the message “our secure server” Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Content What you have to say and offer Cannot be static News about product, scores, contest, searches Uniqueness Not offered elsewhere Difficult to obtain Self-help Search for product Order product Check the status of an order Track a delivery Community Provide sense of community Sharing between visitors Prizes Success FactorsMaking a Profit Repeat business needed Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

B2CBusiness-to-Consumer • Activity between business and individual • User makes purchase based upon personal decisions Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

B2BBusiness-to-Business • Activity of one business providing another with materials and supplies • Advantages to buyers • Reduced costs of procurement • Consider a larger number of suppliers Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Sharing Files Unicasting • Send multiple computers copies of files individually • Wastes bandwidth as you are sending the same file over and over Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Sharing Files • Broadcast • Send one copy of the file to every computer on the network • Wasteful – some users do not need the file • Multicasting • Send one copy of the file and it is directed only to the appropriate recipients Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Push TechnologyWebcasting • Software that send (pushes) information from the Internet to a user’s PC • Makes business active participants in providing information to users Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

Intranet, Extranet, Internet • Intranet • Private • Can be linked to Internet • Extranet • Provide access to Intranet to selected customer and suppliers • Internet • Public Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

VPNVirtual Private Networks • Use public Internet as a channel for private data communication • Use the Internet to access the company network rather than private lines • Sharing public lines • Lower cost Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

VPNBenefits • Lower operating costs • Simplifies communications • Reduces in-house management responsibilities • Communication needs handled by ISP Faculty of Business, Finance, and Hospitality School of Business Prepared By: Normy Rafida

The Internet in Business: Corporations, Businesses, and Entrepreneurs