Copyright © 2002 by Harcourt, Inc. All rights reserved. CHAPTER SEVEN ELECTRONIC COMMERCE: THE INTERNET AND ONLINE BUSINESS Text by Profs. Gene Boone &

Copyright © 2002 by Harcourt, Inc. All rights reserved.

CHAPTER SEVENCHAPTER SEVEN

ELECTRONIC COMMERCE: THE ELECTRONIC COMMERCE: THE INTERNET AND ONLINE INTERNET AND ONLINE

BUSINESSBUSINESS

Text by Profs. Gene Boone & David KurtzText by Profs. Gene Boone & David KurtzMultimedia Presentation byMultimedia Presentation byProf. Milton PressleyProf. Milton PressleyThe University of New OrleansThe University of New Orleans

[email protected]@uno.edu


THE INTERNET: KEY TO THE INTERNET: KEY TO BUSINESS SUCCESSBUSINESS SUCCESSTHE INTERNET: KEY TO THE INTERNET: KEY TO BUSINESS SUCCESSBUSINESS SUCCESS• Internet (or Net): worldwide network

of interconnected computers that lets anyone with access to a personal computer send and receive images and data anywhere

• World Wide Web: collection of resources on the internet that offers easy access to text, graphics, sound, and other multimedia resources

© PhotoDisc


THE INTERNET: KEY TO THE INTERNET: KEY TO BUSINESS SUCCESSBUSINESS SUCCESSTHE INTERNET: KEY TO THE INTERNET: KEY TO BUSINESS SUCCESSBUSINESS SUCCESS

• Web site: integrated document composed of electronic pages that integrate text, graphics, audio, and video elements, as well as hypertext links to other documents

• Domain Name: a Web site address

© PhotoDisc


How The Internet WorksHow The Internet WorksHow The Internet WorksHow The Internet Works• Remarkable System of cooperating

networks

Figure 7.1: How Information Travels on the Internet


How The Internet WorksHow The Internet WorksHow The Internet WorksHow The Internet Works

• Internet Service Provider (ISP) organization that provides access to the internet, usually via the public telephone network

• Digital Subscriber Line (DSL) a cable modem, or a satellite link to the internet which makes the data move at fast speeds


How The Internet WorksHow The Internet WorksHow The Internet WorksHow The Internet Works

• ISP’s Server: a larger, special computer that holds information, providing it to clients on request

• Client: another computer or device that relies on the resources of other servers to help with its own processing


WHO’S ON THE NET?WHO’S ON THE NET?WHO’S ON THE NET?WHO’S ON THE NET?

• Users on every continent• 43% of Internet Users in

the US• Share from other countries

is growing

© PhotoDisc


Figure 7.2: Top Ten Internet Users


• Once dominated by men• Gender gap has narrowed

• Women users now represent more than ½ in the U.S.

• Women users growing rapidly in other nations

WHO’S ON THE NET?WHO’S ON THE NET?WHO’S ON THE NET?WHO’S ON THE NET?

© PhotoDisc


Figure 7.3: Four Functions of the Internet

Using the Net’s Four FunctionsUsing the Net’s Four FunctionsUsing the Net’s Four FunctionsUsing the Net’s Four Functions


THE SCOPE OF ELECTRONIC THE SCOPE OF ELECTRONIC COMMERCECOMMERCETHE SCOPE OF ELECTRONIC THE SCOPE OF ELECTRONIC COMMERCECOMMERCE

• Electronic Commerce Electronic Commerce (E-Commerce):(E-Commerce): process process for online marketing of for online marketing of goods and services – goods and services – including product including product information, ordering, information, ordering, invoicing, and payment invoicing, and payment processes, and customer processes, and customer servicesservices

© PhotoDisc


Figure 7.6: Benefits of E-commerce


Figure 7.9: Top Five Products Purchased Online


Figure 7.10: Roadblocks to E-Commerce


MANAGING A WEB SITE: DOING MANAGING A WEB SITE: DOING BUSINESS ON THE INTERNETBUSINESS ON THE INTERNETMANAGING A WEB SITE: DOING MANAGING A WEB SITE: DOING BUSINESS ON THE INTERNETBUSINESS ON THE INTERNET

• Some key questions to consider in Some key questions to consider in developing a Web site are shown developing a Web site are shown on the next slide . . .on the next slide . . .

© PhotoDisc


Figure 7.13: Questions to Consider in Developing a Web Site


Figure 7.14: Macromedia: E-Commerce Web Site DeveloperFigure 7.14: Macromedia: E-Commerce Web Site Developer


ScreamingMedia.comScreamingMedia.com

Using ads like this to Using ads like this to convince firms to convince firms to contract with it’s contract with it’s experts to provide experts to provide customized content customized content

ScreamingMedia.comScreamingMedia.com

Using ads like this to Using ads like this to convince firms to convince firms to contract with it’s contract with it’s experts to provide experts to provide customized content customized content



• Content and Connections• Need interesting material• Who should host the site?• How to draw business to the

site?

Developing Successful Web Sites

© PhotoDisc



• Costs are highly variableCosts are highly variable• Development CostsDevelopment Costs• Web Host CostsWeb Host Costs• Keeping Web Site CurrentKeeping Web Site Current


Costs and Maintenance

© PhotoDisc



• Some measures of Some measures of effectiveness are shown on effectiveness are shown on the next slide . . .the next slide . . .


Costs and Maintenance

Measuring Web Site

Effectiveness

© PhotoDisc



Figure 7.15: Measures of Web Site Effectiveness

• Click-through rate: Click-through rate: the percentage of people the percentage of people presented with a Web banner ad who click on itpresented with a Web banner ad who click on it

• Conversion rate: Conversion rate: the percentage of visitors to a the percentage of visitors to a Web site who make a purchaseWeb site who make a purchase


THE GLOBAL ENVIRONMENT OF THE GLOBAL ENVIRONMENT OF E-COMMERCEE-COMMERCETHE GLOBAL ENVIRONMENT OF THE GLOBAL ENVIRONMENT OF E-COMMERCEE-COMMERCE• Internet creates an enormous pool of potential Internet creates an enormous pool of potential

customerscustomers• Firms can market their offerings internationally Firms can market their offerings internationally

and locate distribution sources and trading and locate distribution sources and trading partners onlinepartners online

• Customers can search for products and Customers can search for products and information convenientlyinformation conveniently

• Sites must consider both language and global Sites must consider both language and global cultural variationscultural variations

• E-commerce can heighten competitionE-commerce can heighten competition

© PhotoDisc


Figure 7.16: Importance of Considering the Internet’s Global PopulationFigure 7.16: Importance of Considering the Internet’s Global Population


WHAT’S AHEADWHAT’S AHEADWHAT’S AHEADWHAT’S AHEAD

• In upcoming chapters we’ll:In upcoming chapters we’ll:• Look at other trends that are reshaping Look at other trends that are reshaping

the business worldthe business world• Explore how companies:Explore how companies:

• Organize, lead, and manage their work Organize, lead, and manage their work processesprocesses

• Manage and motivate their employeesManage and motivate their employees• Empower their employeesEmpower their employees• Handle labor and workplace disputesHandle labor and workplace disputes• Create world-class goods and servicesCreate world-class goods and services

© PhotoDisc

Documents

Copyright © 2002 by Harcourt, Inc. All rights reserved. CHAPTER SEVEN ELECTRONIC COMMERCE: THE INTERNET AND ONLINE BUSINESS Text by Profs. Gene Boone &