The Internet in Business:: Corporations, Businesses, and Entrepreneurs
The Internet in Business:: Corporations, Businesses, and Entrepreneurs
The Internet in Business:: Corporations, Businesses, and Entrepreneurs
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 Explain the importance of Internet transmission speed for business sites Differentiate between intranets, extranets and virtual private networks
Contents
E-Commerce Promoting a Web Site Web-based Business Internet Speed Streaming Sharing Files Push Technology / Webcasting Intranets VPN Consolidation of the Web
E-Commerce
Electronic Commerce
Buying and selling over the Internet
Content
Product related Updated regularly Written to interest visitors in returning to site to purchase in the future
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
E-Commerce Acceptance
Successful web site may alienate others
Portals
Definition entry point to the rest of the Internet
Presents content and links to variety of topics Customize the content
User provides personal data Portal provides related information and links
Snap!
Excite
America Online
Advertising
Pay a fee to the host site Disadvantage of online Ads
Contain graphics and applets that load slowly Ads load first
Live banner
Displays sales pitch User does not need to leave current site Work slowly Expensive to develop
Context-sensitive
Ad is related to subject matter on web page Greater click through and conversion
Web-based Business
Simple to start-up of new businesses
Provides access to people and global markets Minimum investment
Server link Home page
Competition
Not a level playing field Large advertising budgets of large companies get the word out
Web-based Business
Make business look large
Many products can be offered since no inventory No physical space to reflect size
Payments
Finalize order by
Phone Fax Call with credit card number
Taxes
American Federal Law
Taxes due only on mail-orders within your state
Presence of etail is debatable
Taxes
Internet Tax Freedom Act 1998
Provisions
No tax on Internet access charges No new tax on out-of-state businesses (insures that presence is not redefined) Creates temporary commission to study Internet taxes Demand that foreign governments keep Internet free of taxes and tariffs
Free of taxes for three years Can impose same tax regulations as phone or mail order Provisions extended through 2005
Self-help
Search for product Order product Check the status of an order Track a delivery Provide sense of community Sharing between visitors Prizes
Uniqueness
Not offered elsewhere Difficult to obtain
Community
B2C Business-to-Consumer
Activity between business and individual User makes purchase based upon personal decisions Growing
$38 billion in 1998 Over $800 billion by 2005
B2B Business-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 Security Antitrust concerns $92 billion in 1998 $2 trillion in 2004
Problems
Growing
Todays Internet
Million of users Downloading high-volume multimedia data Causes slow transmission speed
Streaming
Hear and see digitized content as it is downloaded
Audio Video Animation
Quality of content Speed of connection Internet traffic Performance will improve as bandwidth improves
Streaming RealPlayer
Free download from RealNetworks
Broadcast.com
Live radio Canned television shows
Sharing Files
Unicasting
Send multiple computers copies of files individually Wastes bandwidth as you are sending the same file over and over
Sharing Files
Broadcast
Send one copy of the file to every computer on the network Wasteful some users do not need the file Compromises security
Multicasting
Send one copy of the file and it is directed only to the appropriate recipients
Intranets
Internal network Private to a certain company
Intranet Setting it Up
Same components as needed for Internet
Intranet
Private Can be linked to Internet
Extranet
Provide access to Intranet to selected customer and suppliers Replacing EDI
Use the Internet to access the company network rather than private lines
Sharing public lines Lower cost
VPN Benefits
Lower operating costs Simplifies communications
VPN Technology
Tunneling / encapsulation
Transfer of data between two similar networks over an intermediate network Point-to-Point Tunneling Protocol (PPTP) proposed protocol for tunneling Encloses packet of one protocol (PPTP) inside packet using different protocol (TCP/IP)
Encryption
Packets are encrypted before encapsulation Authentication software used