INTERNET IN BUSINESSINTERNET IN BUSINESS

The InternetThe Internet Browsing:Browsing:

– Range of choices on the screenRange of choices on the screen– Pre-selection of possible choices to pick onePre-selection of possible choices to pick one– Professionals Professionals

Retailers, Real Estate Professionals and Jewelers etcRetailers, Real Estate Professionals and Jewelers etc

Business Sites:Business Sites:– Selling a product or serviceSelling a product or service– Sites representing Sites representing conglomeratesconglomerates and and entrepreneursentrepreneurs– Screen Resolution & Window SizeScreen Resolution & Window Size

Ice PageIce PageThe primary content is fixed and is ‘frozen to the left margin’.The primary content is fixed and is ‘frozen to the left margin’.

Jello PageJello PageHas a fixed width but ‘wiggles and jiggles’ to center itself on Has a fixed width but ‘wiggles and jiggles’ to center itself on screen.screen.

BabyCenter, an online retail company Vitesse, a semiconductor manufacturer

UPS (United Parcel Service), a delivery service

Eli Lilly, a pharmaceutical manufacturer

GE (General Electric), electrical products manufacturer

Merrill Lynch, a stock broker

Liquid PageLiquid PageWill re-flow to fit no matter what size window you ‘pour’ it into.Will re-flow to fit no matter what size window you ‘pour’ it into.

The images shown here are wide because they look this way on a wide screen

The InternetThe Internet

E-Commerce: Retail SitesE-Commerce: Retail Sites

A new economic order: Buying and Selling over A new economic order: Buying and Selling over the Internet (the Internet (retail retail etail etail))– BuyBuy used items used items– CompareCompare prices prices– Buy collections from Buy collections from anywhere in the worldanywhere in the world– Shopping can Shopping can rangerange from some exotic items like a from some exotic items like a

custom-made sports car to mundane items like custom-made sports car to mundane items like CDs, CDs, videos, clothes, computers cosmetics, flowers--with just videos, clothes, computers cosmetics, flowers--with just a few clicks a few clicks

Adding ContentAdding Content– Something of more general interest to attract visitorsSomething of more general interest to attract visitors– Adventure talesAdventure tales

E-Commerce: Retail SitesE-Commerce: Retail Sites

Flirting with the InternetFlirting with the Internet– Online commerce is seen as a menace by those who do Online commerce is seen as a menace by those who do

in-person business --- a sabotage to traditional sales in-person business --- a sabotage to traditional sales channelschannels

– But, a successful web site can alienate others --- Dave But, a successful web site can alienate others --- Dave Smith Motors’ web site attracted many dealers.Smith Motors’ web site attracted many dealers.

The customers would have to configure a vehicle, pick a dealer, and request a price quote

Portals and AdvertisingPortals and Advertising

PortalPortal– Many started out as search engines and then expanded their Many started out as search engines and then expanded their

content and retail connections, e.g. content and retail connections, e.g. Yahoo, Infoseek, America Yahoo, Infoseek, America OnlineOnline. .

– Web sites carrying Web sites carrying advertisements chargeadvertisements charge for them at rates that are for them at rates that are directly related to the directly related to the number of visitorsnumber of visitors

– They want to persuade you to use them as your guideThey want to persuade you to use them as your guide

Getting PersonalGetting Personal– The The portal site needs some information from you that it can use to portal site needs some information from you that it can use to

personalizepersonalize your use of the site, e.g. your use of the site, e.g. my.yahoo.commy.yahoo.com– They can supply data like local weather conditions, local news and They can supply data like local weather conditions, local news and

sports scores, and even a portfolio of stocks you ownsports scores, and even a portfolio of stocks you own– They can also offer instructions on how to make the portal site your They can also offer instructions on how to make the portal site your

‘home page’‘home page’

Portals and AdvertisingPortals and Advertising Another Source of MoneyAnother Source of Money

– Many portal sites have a significant revenue stream in the form of a Many portal sites have a significant revenue stream in the form of a referral feereferral fee

– The affiliates, based on deals made with portal, pay for the privilegeThe affiliates, based on deals made with portal, pay for the privilege

More AdvertisingMore Advertising– Advertisements on the web sites are Advertisements on the web sites are in the form of in the form of banner adsbanner ads or or

little applets, showing some sort of motion to get our attention little applets, showing some sort of motion to get our attention – Users are often Users are often reluctant to click throughreluctant to click through --- one solution is to have --- one solution is to have

a a live bannerlive banner– The most effective Web advertisements are The most effective Web advertisements are context-sensitivecontext-sensitive;; that that

is, the ad is related to the subject matter on the screen is, the ad is related to the subject matter on the screen – The disadvantage of these ads is that these graphics and applets The disadvantage of these ads is that these graphics and applets

take time to load or the ads load first --- site manager wants to take time to load or the ads load first --- site manager wants to make sure that you see the advertisements before you go clicking make sure that you see the advertisements before you go clicking off somewhere else off somewhere else

Banner ads. Major traffic sites carry banner advertisements strategically placed to match the subject matter. (a) The Lycos site, which is a search engine as well as a portal, opens with an extensive list of categories. If you click Computers, you will see the screen shown here, which includes three computer-related ads (only one of them in the actual shape of a banner). (b) Starting with the HotBot search engine/portal, click Travel to see the screen shown here, which has three travel-related ads.

Portals and AdvertisingPortals and Advertising

Payments and TaxesPayments and Taxes E-Commerce PaymentsE-Commerce Payments

– Some retail sites give you the option of phoning or faxing your Some retail sites give you the option of phoning or faxing your orderorder as as some people are leery of submitting their credit-card some people are leery of submitting their credit-card numbers over the network numbers over the network

– Messages between the buyer and the online retailer are Messages between the buyer and the online retailer are encrypted encrypted ---encoded---encoded. It would take a skilled programmer to undo the . It would take a skilled programmer to undo the encryption encryption

– The The standard for online transaction payments is the standard for online transaction payments is the Secure Secure Sockets Layer (SSL)Sockets Layer (SSL) protocol protocol

http://www.apache-ssl.org/http://www.apache-ssl.org/ https://www.verisign.com/https://www.verisign.com/

E-Commerce TaxesE-Commerce Taxes– A law was passed in October 1998, called the A law was passed in October 1998, called the Internet Tax Internet Tax

Freedom ActFreedom Act. . – The act provides that the Internet be free of new taxes for three The act provides that the Internet be free of new taxes for three

years while a committee determines if taxes should be imposed years while a committee determines if taxes should be imposed and, if so, how to do so in a uniform wayand, if so, how to do so in a uniform way

Payments and TaxesPayments and Taxes

E-Commerce TaxesE-Commerce Taxes– State and local governments are allowed to impose sales State and local governments are allowed to impose sales

taxes on Internet sales, provided that the tax is the same taxes on Internet sales, provided that the tax is the same as that which would be imposed on the transactions if they as that which would be imposed on the transactions if they were conducted in a more traditional manner were conducted in a more traditional manner

EntrepreneursEntrepreneurs

– Individuals can gain Individuals can gain access to people and markets--including access to people and markets--including global marketsglobal markets

– For a minimum investment, far less than that needed for a physical For a minimum investment, far less than that needed for a physical store or office, you can have a server link and a smashing home store or office, you can have a server link and a smashing home page that exactly expresses the nature of your business page that exactly expresses the nature of your business

– Everybody has a chance, but it is not a level playing fieldEverybody has a chance, but it is not a level playing field

Success FactorsSuccess Factors– The key success factor for any commercial web site is repeat The key success factor for any commercial web site is repeat

business business – Some primary success factors are:Some primary success factors are:

ContentContent

The site must offer something--preferably several things--to keep The site must offer something--preferably several things--to keep interest up. An example can be The Motley Fool which lets investors interest up. An example can be The Motley Fool which lets investors ask questions and share knowledge ask questions and share knowledge

EntrepreneursEntrepreneurs

UniquenessUniqueness

Something not offered elsewhere, e.g. Cdnow and HotHotHot Something not offered elsewhere, e.g. Cdnow and HotHotHot

A successful entrepreneur site. One of the hallmarks of the Motley Fool web site is that it has ever-changing content, which brings investors to the site again and again, many of them daily or even hourly.

Success FactorsSuccess Factors Self-HelpSelf-Help

There should be a There should be a search enginesearch engine. Customers should be able to . Customers should be able to configure and order products, troubleshoot problems, check on the configure and order products, troubleshoot problems, check on the status of an order, or track a delivery status of an order, or track a delivery

CommunityCommunity

A key to the success of a commercial site is a sense of A key to the success of a commercial site is a sense of community.community. An An outstanding example of this is the outstanding example of this is the Amazon Books siteAmazon Books site

The ConglomeratesThe Conglomerates– Visitors at the College Depot site, which sells college-type Visitors at the College Depot site, which sells college-type

merchandise, may be surprised to learn that the business merchandise, may be surprised to learn that the business is based in the Gleeson family home in Trumbull, is based in the Gleeson family home in Trumbull, Connecticut. The Gleesons want to convey the image that Connecticut. The Gleesons want to convey the image that they are a substantial company because they think it helps they are a substantial company because they think it helps to build trust. to build trust.

– The success is not automatic. The success is not automatic.

EntrepreneursEntrepreneurs