![Page 1: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/1.jpg)
Management Information Systems, 4th Edition
1
Chapter 7E-Commerce: The Internet,
Intranets, and Extranets
![Page 2: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/2.jpg)
Management Information Systems, 4th Edition
2
Learning Objectives
• Explain how the Internet functions
• List the features for information exchange that can be conducted over the World Wide Web
• Explain how the Web facilitates electronic commerce
• Explain basic business models on the Web
![Page 3: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/3.jpg)
Management Information Systems, 4th Edition
3
What is the Internet?• The Development of the Internet
– ARPANET was open system designed for the free flow of information, but available only to members of academic institutions and some in the defense industry.
– U.S. government decided to split the network into a civilian one and a military one
• Civilian network became the Internet
– Internet is now a network of networks
![Page 4: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/4.jpg)
Management Information Systems, 4th Edition
4
What is the Internet? (Cont.)
![Page 5: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/5.jpg)
Management Information Systems, 4th Edition
5
Growth of the Internet• Number of servers
– 147 million in mid-2003
• Number of users
– More than 600 million; 10 percent of the world population
![Page 6: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/6.jpg)
Management Information Systems, 4th Edition
6
Growth of the Internet (Cont.)
![Page 7: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/7.jpg)
Management Information Systems, 4th Edition
7
Growth of the Internet (Cont.)
![Page 8: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/8.jpg)
Management Information Systems, 4th Edition
8
Growth of the Internet
![Page 9: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/9.jpg)
Management Information Systems, 4th Edition
9
How the Internet Works
• Definitions
– Uniform Resource Locator (URL)
– Hypertext Transfer Protocol (HTTP)
– Domain Name
– Hypertext Markup Language (HTML)
– Top Level Domain (TLD)
![Page 10: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/10.jpg)
Management Information Systems, 4th Edition
10
How the Internet Works (Cont.)
![Page 11: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/11.jpg)
Management Information Systems, 4th Edition
11
• IP Number
• Domain Naming System (DNS)
• A domain name is assigned to each IP address
• Domain names are registered by one of a group of companies authorized to assign unique names
Internet Domains
![Page 12: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/12.jpg)
Management Information Systems, 4th Edition
12
Internet Domains (Cont.)
![Page 13: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/13.jpg)
Management Information Systems, 4th Edition
13
Internet Addressing
![Page 14: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/14.jpg)
Management Information Systems, 4th Edition
14
• Static:
– Servers and many other computers and devices are assigned a permanent IP number
• Dynamic: – A computer connected to the Internet intermittently
may be assigned a temporary IP number for the duration of its connection only
Static and Dynamic IP Numbers
![Page 15: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/15.jpg)
Management Information Systems, 4th Edition
15
Common Internet Applications
• File Transfer
• Newsgroups and Blogs
• Instant Messaging
• Internet Telephoning
• Web Browsers
![Page 16: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/16.jpg)
Management Information Systems, 4th Edition
16
The World Wide Web• Web Software
– HTML and XML
– Web Page Editors
– Java, JavaScript, and ActiveX
– Web-Application-Interfaces
– VRML
– Cookies
![Page 17: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/17.jpg)
Management Information Systems, 4th Edition
17
The World Wide Web (Cont.)
![Page 18: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/18.jpg)
Management Information Systems, 4th Edition
18
Intranets and Extranets– Intranet
• A within-organization computer network that uses Internet technologies to communicate
– Extranet
• Uses Internet technologies to facilitate communication and trade between an organization and its business partners, such as suppliers
![Page 19: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/19.jpg)
Management Information Systems, 4th Edition
19
Intranets and Extranets (Cont.)
![Page 20: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/20.jpg)
Management Information Systems, 4th Edition
20
Intranets and Extranets (Cont.)
![Page 21: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/21.jpg)
Management Information Systems, 4th Edition
21
Intranets and Extranets (Cont.)
![Page 22: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/22.jpg)
Management Information Systems, 4th Edition
22
Establishing an E-CommerceWeb Site
• Several Options1. Installing their own server2. Contracting with an ISP3. Contracting with a Web portal4. Establishing an electronic storefront5. Contracting with a Web hosting service6. Using a virtual Web server7. Setting up a subdomain
![Page 23: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/23.jpg)
Management Information Systems, 4th Edition
23
• Dedicated Server
– Expensive option with the greatest degree of control
– Requires expertise
– Specialists needed maintain the server
• Load balancing transfers visitor inquiries from a busy server to a less busy server
Establishing an E-CommerceWeb Site (Cont.)
![Page 24: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/24.jpg)
Management Information Systems, 4th Edition
24
• ISP Site
– Low-fee or free space for individual or business Web sites.
– Many small businesses avoid this option
– Can give the appearance that such online businesses are ephemeral
Establishing an E-CommerceWeb Site (Cont.)
![Page 25: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/25.jpg)
Management Information Systems, 4th Edition
25
• Web portal– Limited space and design control
• Electronic Storefront– Cybermall
• Web Hosting Service
• Virtual Web Server
• Subdomain
Establishing an E-CommerceWeb Site (Cont.)
![Page 26: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/26.jpg)
Management Information Systems, 4th Edition
26
Establishing an E-CommerceWeb Site (Cont.)
![Page 27: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/27.jpg)
Management Information Systems, 4th Edition
27
Establishing an E-CommerceWeb Site (Cont.)
![Page 28: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/28.jpg)
Management Information Systems, 4th Edition
28
Business-to-Business Trading
• Electronic Data Interchange
• Exchanges and Auctions
• Online Business Alliances
• Application and Storage Service Providers
![Page 29: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/29.jpg)
Management Information Systems, 4th Edition
29
• Advertising
– Unique visitors per month
– Unique visitor pages
– Reach percentage
– Banners
Business-to-Consumer Trading
![Page 30: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/30.jpg)
Management Information Systems, 4th Edition
30
Business-to-Consumer Trading (Cont.)
![Page 31: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/31.jpg)
Management Information Systems, 4th Edition
31
• E-retailing– Customer Relationship Management (CRM)– Consumer Profiling
• Auctions and Reverse Auctions• Content Providers• Software Sales• Stock Trading• Distributed R&D
Business-to-Consumer Trading (Cont.)
![Page 32: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/32.jpg)
Management Information Systems, 4th Edition
32
Business-to-Consumer Trading (Cont.)
![Page 33: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/33.jpg)
Management Information Systems, 4th Edition
33
• Target the right customer
• Own the customer’s total experience
• Personalize the service
• Shorten the business cycle
• Let the customers help themselves
• Be proactive
Rules for Successful Online Business Transactions
![Page 34: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/34.jpg)
Management Information Systems, 4th Edition
34
• Niche Retailing
• Selling Hard-to-obtain information
• Click-and-mortar retailing
• Rules for Successful Web Page Design
• E-Government
• M-Commerce
Successful Business Models
![Page 35: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/35.jpg)
Management Information Systems, 4th Edition
35
E-Commerce Practices on the Internet
![Page 36: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/36.jpg)
Management Information Systems, 4th Edition
36
Management Challenges and Solutions
• Reduced Control over Information Resources
• Reduced Budgetary Control
• Cost/Benefit Analysis
• Scalability
• Security
• Education
![Page 37: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/37.jpg)
Management Information Systems, 4th Edition
37
E-Commerce is Every Commerce
• Web technologies have been integrated into the business world
• Information that flows inside an organization actually uses the Internet segments of intranets
• Businesses not yet on the Internet will eventually be there
![Page 38: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/38.jpg)
Management Information Systems, 4th Edition
38
Online Annoyances
• Spam
• Pop up Windows
• Adware and Spyware
![Page 39: Chapter 7 E-Commerce: The Internet, Intranets, and Extranets](https://reader033.vdocument.in/reader033/viewer/2022061517/56812a45550346895d8d7e29/html5/thumbnails/39.jpg)
Management Information Systems, 4th Edition
39
Summary
• How the Internet functions
• Information exchange over the Internet
• The web facilitates electronic commerce
• Business models on the Web