1copyright © prentice hall 2000 the internet in business chapter 8 corporations, small businesses,...

1Copyright © Prentice Hall 2000

The Internet in Business

Chapter 8Chapter 8

Corporations, Small Corporations, Small Businesses, and Businesses, and EntrepreneursEntrepreneurs


Business Sites

Ice pageIce page - a page in which the primary - a page in which the primary content has a fixed width and is “frozen” content has a fixed width and is “frozen” to the left marginto the left margin

Jello pageJello page - fixed width but “wiggles and - fixed width but “wiggles and jiggles” to center itself on the screenjiggles” to center itself on the screen

Liquid pageLiquid page - a web page that will re-flow - a web page that will re-flow to fit no matter what you “pour” it intoto fit no matter what you “pour” it into


E-Commerce: Retail Sites

Electronic commerceElectronic commerce - buying and - buying and selling over the Internet. selling over the Internet.

Retail sites allow the purchase of Retail sites allow the purchase of practically anything over the practically anything over the Internet.Internet.


Adding Content

Retail sites are now adopting Retail sites are now adopting contentcontent to attract visitors and to attract visitors and boost sales. boost sales.

The difference between content and The difference between content and commerce sites is quickly commerce sites is quickly becoming narrower. becoming narrower.


Only Flirting With the Internet

Though manufacturers know the Internet Though manufacturers know the Internet could be an effective sales tool, they could be an effective sales tool, they fear that selling from their own site will fear that selling from their own site will alienate sales representatives and alienate sales representatives and stores with whom they have stores with whom they have connections.connections.

Jittery corporate strategists are trying to Jittery corporate strategists are trying to venture onto the Net without alienating venture onto the Net without alienating physical sales as well.physical sales as well.


Portals and Advertising

Like television, radio, etc., the networks Like television, radio, etc., the networks collect revenue from advertising.collect revenue from advertising.

Web sites often wish to be a visitor’s Web sites often wish to be a visitor’s portalportal to the Internet, to attract first-stop visitors to the Internet, to attract first-stop visitors who use the site to venture forth on the who use the site to venture forth on the Web.Web.


Getting Personal

A good portal site supplies the visitor with A good portal site supplies the visitor with many links to different subjects of interest many links to different subjects of interest (i.e., film, entertainment, business, etc.)(i.e., film, entertainment, business, etc.)

Portal sites often have means of visitor Portal sites often have means of visitor personalization to attract repeat visitspersonalization to attract repeat visits

Some portals go further and offer Some portals go further and offer instructions on how to make the portal instructions on how to make the portal site the default page loaded by a browser.site the default page loaded by a browser.


Another Source of Money

The portal web site offers the news and The portal web site offers the news and other features from other features from affiliatesaffiliates, which , which the portal chooses.the portal chooses.

The affiliates pay for the privilege.The affiliates pay for the privilege.

The portal gets a portion of the profits The portal gets a portion of the profits made by their affiliates’ sales.made by their affiliates’ sales.

The ultimate goal of each portal is to The ultimate goal of each portal is to make its site your one-stop site on the make its site your one-stop site on the Internet.Internet.


More Advertising

Most Web advertisement is in the form of Most Web advertisement is in the form of banner adsbanner ads, so named for their horizontal-, so named for their horizontal-rectangle shape.rectangle shape.

Banners do not work as well as advertisers would Banners do not work as well as advertisers would hope because visitors are often reluctant to hope because visitors are often reluctant to leave sites of interest.leave sites of interest.

One solution to this is the One solution to this is the live bannerlive banner, which , which gives a user more information than a gives a user more information than a conventional banner.conventional banner.


Payments and Taxes

You want to make a purchase on an E-You want to make a purchase on an E-commerce site, but you may have commerce site, but you may have questions:questions:– How will you pay for it?How will you pay for it?– Will you have to pay taxes on your Will you have to pay taxes on your

purchase?purchase?

The next two sections will likely provide The next two sections will likely provide you with answers.you with answers.


E-Commerce Payments

Some retail sites allow you to phone or Some retail sites allow you to phone or fax your order.fax your order.

Though Internet transactions involve Though Internet transactions involve submitting one’s credit card, it would submitting one’s credit card, it would take a skilled programmer to undo the take a skilled programmer to undo the encryption.encryption.

The de facto standard for online The de facto standard for online transaction payments is the transaction payments is the Secure Secure Sockets Layer (SSL) Sockets Layer (SSL) protocol.protocol.


E-Commerce Taxes

Taxation of E-commerce has long been Taxation of E-commerce has long been debatable; Internet business “presence” debatable; Internet business “presence” in any land is a difficult concept.in any land is a difficult concept.


E-Commerce Taxes

The The Internet Tax Freedom ActInternet Tax Freedom Act has four has four components:components:– Prohibits state, local government Prohibits state, local government

from imposing tax on Internet access from imposing tax on Internet access chargescharges

– Prohibits tax from being imposed on Prohibits tax from being imposed on out-of-state business through defined out-of-state business through defined concept of “presence”concept of “presence”


E-Commerce Taxes

– Creates temporary commission to Creates temporary commission to study taxation of E-commerce and study taxation of E-commerce and report to Congress on whether report to Congress on whether Internet ought to be taxedInternet ought to be taxed

– Calls on executive branch to demand Calls on executive branch to demand foreign governments keep Internet foreign governments keep Internet free of taxes, tariffs.free of taxes, tariffs.


Entrepreneurs

Individuals can gain access to people, Individuals can gain access to people, markets - even global markets - not markets - even global markets - not readily affordable/available elsewhere.readily affordable/available elsewhere.

Even though anyone can get in on E-Even though anyone can get in on E-business, the Internet is not a level business, the Internet is not a level playing field. playing field.


Success Factors

The body of your site is the The body of your site is the contentcontent; ; what does the site offer?what does the site offer?

A recommendation for success is to have A recommendation for success is to have a a specialtyspecialty, something not offered , something not offered anywhere elseanywhere else

Self-help featuresSelf-help features are both useful and a are both useful and a winning strategy. winning strategy.

A sense of A sense of communitycommunity is the key to a is the key to a commercial site’s success.commercial site’s success.


My Mother, the Conglomerate

Mom-and-pop businesses have learned Mom-and-pop businesses have learned that, on the Web, anybody can look like that, on the Web, anybody can look like a conglomerate.a conglomerate.

The same is true for teenagers, college The same is true for teenagers, college students, stay-at-homes, and anyone students, stay-at-homes, and anyone else who is operating a business from a else who is operating a business from a den or garage.den or garage.

Success online is never automatic - but it Success online is never automatic - but it is always a possibility.is always a possibility.


Traffic Jams

Numerous solutions to the Internet Numerous solutions to the Internet speed problem are proposed, such as speed problem are proposed, such as expanding “the pipes” with expanding “the pipes” with alternatives to 56K modem:alternatives to 56K modem:– Satellite transmission - wireless, Satellite transmission - wireless,

widely available, but expensive and widely available, but expensive and potentially clogged at peak hours.potentially clogged at peak hours.


Traffic Jams, cont.

– Integrated Services Digital NetworkIntegrated Services Digital Network (ISDN) is very speedy and widely available, (ISDN) is very speedy and widely available, transmitting data at up to 128,000 bps. It transmitting data at up to 128,000 bps. It requires special equipment and is complicated requires special equipment and is complicated to set up and somewhat expensive.to set up and somewhat expensive.

– Digital subscriber linesDigital subscriber lines (DSL) use advanced (DSL) use advanced electronics to send data over conventional electronics to send data over conventional telephone wires, operating much like telephone wires, operating much like modems. However, DSL lacks industry modems. However, DSL lacks industry standards, and various manufacturers are standards, and various manufacturers are imposing their own variations.imposing their own variations.


Traffic Jams, cont.

– Cable modemCable modem is another approach, is another approach, using the coaxial television cables using the coaxial television cables already in place without interrupting already in place without interrupting normal cable reception. Some cable normal cable reception. Some cable modems can be as fast as 10 modems can be as fast as 10 millionmillion bps. bps.


Streaming

StreamingStreaming, the downloading of live , the downloading of live audio/video/animation content, is the audio/video/animation content, is the most notable bandwith user.most notable bandwith user.

Streamed sound, images usually appear Streamed sound, images usually appear via browser plug-in, greatly accelerating via browser plug-in, greatly accelerating streaming to mere seconds at times.streaming to mere seconds at times.


Multicasting

Suppose you work for a company that Suppose you work for a company that develops documentary packages. You develops documentary packages. You have written a report to be shown to a have written a report to be shown to a few dozen select individuals. Your few dozen select individuals. Your options for transmission:options for transmission:– Unicasting - sending a separate copy of a Unicasting - sending a separate copy of a

file from your computer to each desired file from your computer to each desired recipient, one at a time. This wastes recipient, one at a time. This wastes bandwidth unnecessarily and is bandwidth unnecessarily and is inconvenient.inconvenient.


Multicasting, cont.

– Broadcasting - sending only one copy Broadcasting - sending only one copy of the file, but sending it to every of the file, but sending it to every computer on the network, regardless computer on the network, regardless of who it was intended for. This is of who it was intended for. This is wasteful and compromises security. wasteful and compromises security.

– Multicasting - sending only one copy Multicasting - sending only one copy of each file, but dropping it off only of each file, but dropping it off only with appropriate recipients. The best with appropriate recipients. The best method by far.method by far.


Push Technology

Push technology refers to E-commerce that Push technology refers to E-commerce that delivers, or delivers, or pushespushes, the goods , the goods to you,to you, as as opposed to opposed to pullpull, such as , such as you goingyou going to the to the newsstand to get a newspaper.newsstand to get a newspaper.

This concept also refers to Web sites and This concept also refers to Web sites and Web software that bring requested Web software that bring requested information information toto you, as opposed to you, as opposed to youyou having to navigate many web pages to having to navigate many web pages to get your information. get your information.


Intranets

IntranetIntranet - an internal, private, Internet-like - an internal, private, Internet-like network of computers, common network of computers, common throughout companies in the workplace.throughout companies in the workplace.

Every Fortune 500 company either has an Every Fortune 500 company either has an intranet or is planning one.intranet or is planning one.


Setting Up an Intranet

The TCP/IP protocols must be in place.The TCP/IP protocols must be in place.

The server needs its own software.The server needs its own software.

Each access computer needs a browser.Each access computer needs a browser.

The pages must be well designed and The pages must be well designed and easy to follow (function over glitz)easy to follow (function over glitz)


Intranets at Work

A well-designed intranet can be used by A well-designed intranet can be used by most employees from day one. For most employees from day one. For example:example:– Employees can easily access information Employees can easily access information

they desire or require (i.e. benefits status)they desire or require (i.e. benefits status)– Rather than mass-E-mailing employees, Rather than mass-E-mailing employees,

Managers can post notices or other Managers can post notices or other information on their own web site for information on their own web site for employees to check.employees to check.


The Internet Too

An intranet can remain private, but can An intranet can remain private, but can still be linked to the Internet.still be linked to the Internet.

Companies may choose to link some parts Companies may choose to link some parts of their intranets together. Such a of their intranets together. Such a hookup is called an hookup is called an extranetextranet..


Virtual Private Networks

Virtual private network (VPN)Virtual private network (VPN) - provides - provides technology that uses the public Internet technology that uses the public Internet backbone as a channel for private data backbone as a channel for private data communication.communication.

A VPN essentially carves out a private A VPN essentially carves out a private passageway through the Internet. passageway through the Internet.

TunnelingTunneling - a.k.a. - a.k.a. encapsulationencapsulation, a way , a way to transfer data between two similar to transfer data between two similar networks over an intermediate network.networks over an intermediate network.


Virtual Private Networks

Microsoft, 3Com, and several other Microsoft, 3Com, and several other companies have proposed a standard companies have proposed a standard tunneling protocol called tunneling protocol called Point-to-Point-to-Point Tunneling Protocol (PPTP)Point Tunneling Protocol (PPTP). . (The original protocol was the Internet (The original protocol was the Internet TCP/IP protocol.)TCP/IP protocol.)

Before encapsulation takes place, the Before encapsulation takes place, the TCP/IP packets are encrypted so the TCP/IP packets are encrypted so the data cannot be read by outsiders. data cannot be read by outsiders.


Consolidation of the Web

The WWW started out as - and still is - a The WWW started out as - and still is - a freewheeling place where anyone with a web freewheeling place where anyone with a web page could participate.page could participate.

Today, the Net is a trillion-dollar industry, with Today, the Net is a trillion-dollar industry, with business changes occurring at a blinding pace.business changes occurring at a blinding pace.

The Internet represents a new and important The Internet represents a new and important business model, a whole new way of looking at business model, a whole new way of looking at industry and commerce.industry and commerce.

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