lecture slides 7 introduction to information technology e-business (c) 2006 jim janossy and laura...

Lecture Slides 7Lecture Slides 7

Introduction to Introduction to Information TechnologyInformation Technology

E-BusinessE-Business

(C) 2006 Jim Janossy and Laura McFall, Information Technology Workbook(C) 2006 Jim Janossy and Laura McFall, Information Technology Workbook

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PowerPoint presentations, podcasts, and web PowerPoint presentations, podcasts, and web links for readings are available atlinks for readings are available at

www.ambriana.com > IT Workbook > IT Workbook

Print slides at 6 slides per pagePrint slides at 6 slides per page

Homework, quizzes and final exam are based Homework, quizzes and final exam are based on slides, lectures, readings and podcastson slides, lectures, readings and podcasts

Course resourcesCourse resources

http://www.ambriana.com/

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Topics Topics

• Definitions: e-business, value chain, B2B, B2C

• Internet era I, collapse, era II• Marketing selling before the web, now• Seven unique features of e-commerce• E-commerce business models• Internet irritations and dangers

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Definitions Definitions

• E-business: the use of the internet and web to transact business (limited definition)

• E-business: any business process empowered by an information system (broader definition)

• Business processes along the whole value chain

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Definitions Definitions

• Value chain: the generic value-adding activities of an organization.

• Manufacturing: purchasing, production processes, packaging, sales and marketing, order processing, customer service, maintenance

• Internet supports multiple parts of the value chain

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Types of E-commerceTypes of E-commerce

Distinct types of E-commerceDistinct types of E-commerce

B2CB2C

B2BB2B

C2CC2C

P2PP2P

Business to consumer is web sales to retail consumers. Largest market in terms of quantity of customers, but only 10% of e-commerce revenue.

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B2CB2C

B2BB2B

C2CC2C

P2PP2P

In 2001, was only 1% of the revenue of the entire retail market! There is huge opportunity for growth in B2C!


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B2CB2C

B2BB2B

C2CC2C

P2PP2P

Business to business is web sales between firms. Total 2001 revenue of $12 trillion but only $700 billion was on web, so LOTS of room to grow!


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B2CB2C

B2BB2B

C2CC2C

P2PP2P

Types:Inter-business exchangese-distributorsservice providersmatchmakersinfomediaries


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B2CB2C

B2BB2B

C2CC2C

P2PP2P

Consumer to consumer, auctions such as e-bay.com. Consumer prepares product for sale, relies on market maker for catalog, search engine, payment handling.


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B2CB2C

B2BB2B

C2CC2C

P2PP2P

Generic market maker functions:

product displayproduct discoveryproduct payment


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B2CB2C

B2BB2B

C2CC2C

P2PP2P

Peer to peer, sharing of files without a central web server, like Napster, Gnutella. May be applied to sharing of other computer resources in future.


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B2C vs. B2B B2C vs. B2B

• B2C: business-to-consumer 10%

• B2B: business-to-business 90%

• B2C is most visible to the majority of the population but it is actually dwarfed by business-to-business transactions

• B2B via the internet/web is overtaking EDI (electronic data interchange)

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E-commerce E-commerce

• 1994: $ 0 2000: 60 billion B2C

• 700 billion B2B

• 1994: Internet use growing 2300% / yr

• Enormous changes in firms, markets, consumer behavior

• Fastest growing type of commerce

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E-commerce growth E-commerce growth

• 1994: $ 0 2000: 60 billion B2C

• 700 billion B2B

• 2006: 250 billion B2C

• 5,400 billion B2C

• 4,000,000,000 web pages exist 2003

• 7,000,000 web pages added daily

+420%

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E-commerce growth E-commerce growth

• 1994: $ 0 2000: 60 billion B2C

• 700 billion B2B

• 2006: 250 billion B2C

• 5,400 billion B2C

• 4,000,000,000 web pages now exist

• 7,000,000 web pages added daily

+770%

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Growth compared to other Growth compared to other technologies technologies

B2C e-commerce:B2C e-commerce:

Radio took Radio took 38 years38 years to achieve 30% to achieve 30% household penetration (1920-58)household penetration (1920-58)

Television took Television took 17 years17 years to achieve 30% to achieve 30% household penetration (1946-63)household penetration (1946-63)

Web took only Web took only 7 years7 years to achieve 30% to achieve 30% household penetration (1994-2001)household penetration (1994-2001)

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Internet Era IInternet Era I1995 to 2000 1995 to 2000

• Pieces of underlying technology were all in place by 1994; browsers were last piece; Mosaic triggered explosion in users

• Overly-confident “cowboy” dot.coms

• Lots of swashbuckling investors

• Much dot.com activity in B2C area

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Internet Era IInternet Era I1995 to 2000 - Why? 1995 to 2000 - Why?

Pattern of technological revolutions, as with Pattern of technological revolutions, as with electricity, telephone, radio, TV, carselectricity, telephone, radio, TV, cars

1. 1. Explosion Explosion of entrepreneurial activity paves of entrepreneurial activity paves the way (“first mover” start-ups)the way (“first mover” start-ups)

2. 2. RetrenchmentRetrenchment: weaker, less organized : weaker, less organized players exit while stronger take overplayers exit while stronger take over

3. 3. Continued exploitation Continued exploitation by established by established firmsfirms

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9/11

Internet Era I II

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Internet Era I Internet Era I collapse factors collapse factors

1. Many tech companies profited from Y2K 1. Many tech companies profited from Y2K efforts, suffered when clients were Y2K’defforts, suffered when clients were Y2K’d

2. Telecomm industry overbuilt capacity2. Telecomm industry overbuilt capacity

3. Christmas 1999 had less sales growth 3. Christmas 1999 had less sales growth than expected, shows high tech is hard!than expected, shows high tech is hard!

4. Valuations of dot.com’s too high, 400 x 4. Valuations of dot.com’s too high, 400 x earnings (typical companies 10-15 x); many earnings (typical companies 10-15 x); many never showed never showed ANYANY profit! profit!

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Fallacy of the Fallacy of the “first mover” notion “first mover” notion

Common idea in Era I - “Common idea in Era I - “first moversfirst movers” can ” can gain the market, will lose money first, gain the market, will lose money first, then dominate; but it doesn’t work that then dominate; but it doesn’t work that way!way!

Reality: being first isn’t enough. Reality: being first isn’t enough. You You need to have a good business plan, act need to have a good business plan, act on it, and need much greater financial on it, and need much greater financial strength to develop mature marketsstrength to develop mature markets

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Plus… some ideas Plus… some ideas just aren’t so good! just aren’t so good!

Some innovative ideas sounded good but Some innovative ideas sounded good but just just weren’t viableweren’t viable (wishful thinking) (wishful thinking)

There are some things that people feel There are some things that people feel comfortable buying at a distance, and comfortable buying at a distance, and some things people buy in personsome things people buy in person

Some services are handy, some are Some services are handy, some are too too much trouble or inconvenient onlinemuch trouble or inconvenient online

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B2C E-commerce now… B2C E-commerce now…

is alive and well:is alive and well:

““...has moved into the mainstream life of ...has moved into the mainstream life of established business concernsestablished business concerns that that have the market brands and financial have the market brands and financial muscle required for long-term deployment muscle required for long-term deployment of e-commerce technologies and of e-commerce technologies and methods.”methods.”

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““EstablishedEstablished companies” companies”

““Bricks and clicks”Bricks and clicks” companies companies

Existing companies with traditionally-Existing companies with traditionally-developed and serviced markets, developed and serviced markets, traditional productstraditional products

Web Web adds new dimensionadds new dimension to their marketing to their marketing and customer attraction/retention optionsand customer attraction/retention options

““Pure play”Pure play” are new Web-only companies are new Web-only companies

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Need to understand:Need to understand:

Relationships between Relationships between e-commercee-commerce

business interestsbusiness intereststechnologytechnologysocial and legal contextssocial and legal contexts

SuppliersCustomersCompetitorsPartners

How do we: locate suppliers and itemsorderdiscover prices?

To understand To understand e-commerce... e-commerce...

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SuppliersCustomersCompetitorsPartners

How do we: market productsadvertiseuse brands?


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How to reduce supply chain costs?How to increase production efficiency?How to tighten relationship with customers?


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Payment systemsSecurityMarketingB2BRetail


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PrivacyIntellectual propertySovereigntyWeb governanceFair accessPublic welfare


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Amazon.comAmazon.com

Founding ideas:Founding ideas:

• Audience expanding (Web growth)Audience expanding (Web growth)

• Less need to touch and feel books to buy Less need to touch and feel books to buy them than many other itemsthem than many other items

• Large source of supply (2,500 publishers)Large source of supply (2,500 publishers)

• Largest stores had only 12% of marketLargest stores had only 12% of market

• Major distributors stock books; no need for Major distributors stock books; no need for local inventorylocal inventory

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Founding determinations:Founding determinations:

• Market existsMarket exists

• Books can be sold at a distanceBooks can be sold at a distance

• No one else owns the source of supplyNo one else owns the source of supply

• Competition is not unifiedCompetition is not unified

• Distributors hold inventory; few premises Distributors hold inventory; few premises needed, few employees: lower costneeded, few employees: lower cost


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Compelling factors for customers:Compelling factors for customers:

Selection:Selection: Million titles (books, CDs, DVDs) Million titles (books, CDs, DVDs)

Convenience:Convenience: anytime, anywhere,simplified anytime, anywhere,simplified ordering (“1-click”)ordering (“1-click”)

Price:Price: discounts from regular retail price discounts from regular retail price

Service:Service: order confirmation e-mails, order confirmation e-mails, notifications of out of stock situations, notifications of out of stock situations, affiliate (used book) vendorsaffiliate (used book) vendors


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Amazon.com Amazon.com performance performance

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Yet despite it’s diversification into other Yet despite it’s diversification into other product lines, in 2005 sales of books, product lines, in 2005 sales of books, CDs and DVDs still accounted for 70% CDs and DVDs still accounted for 70% of Amazon sales! of Amazon sales!

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Information asymmetry is. . .Information asymmetry is. . .

Any disparity in relevant market Any disparity in relevant market information among the parties in a information among the parties in a transaction.transaction.

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Mass marketingMass marketing

Salesforce drivenSalesforce driven

Consumers seen as Consumers seen as passive targetspassive targets

Campaigns and brandsCampaigns and brands aimed to influence aimed to influence consumers product perceptions and consumers product perceptions and purchasing behaviorpurchasing behavior

Consumers trapped by geographical and Consumers trapped by geographical and social boundariessocial boundaries

Information asymmetry

Marketing and sellingMarketing and sellingbefore the webbefore the web

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Information asymmetryInformation asymmetry

Consumers unable to search widely for best Consumers unable to search widely for best price and qualityprice and quality

Information about…Information about…pricespricescostscostsfeesfees

…could be hidden from consumer!…could be hidden from consumer!

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Podcast 44: Internet Podcast 44: Internet advantages for advantages for consumersconsumers

• Search for competing products and Search for competing products and competing vendors and prices: easier, competing vendors and prices: easier, more comprehensive “due diligence”more comprehensive “due diligence”

• Can learn of other’s experiences with the Can learn of other’s experiences with the products and vendorsproducts and vendors

• Disintermediation: better prices because Disintermediation: better prices because “middlemen” may be eliminated“middlemen” may be eliminated

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Podcast 45: Internet Podcast 45: Internet advantages for advantages for sellerssellers

• Publish larger catalog (more products)Publish larger catalog (more products)

• Reach consumers all hour, everywhereReach consumers all hour, everywhere

• Adjust prices instantlyAdjust prices instantly

• Disintermediation: cut costs, price more Disintermediation: cut costs, price more competitively competitively

• New ways to market, customize offerings New ways to market, customize offerings

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Marketing and selling - nowMarketing and selling - now

Altered by 7 unique features of e-commerceAltered by 7 unique features of e-commerceUbiquityUbiquityGlobal reachGlobal reachUniversal standardsUniversal standardsRichnessRichnessInteractivityInteractivityInformation densityInformation densityPersonalization / customizationPersonalization / customization

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“Marketspace” extends everywhere, including mobile. Shopping is 24x7 and shopper costs are reduced.


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Commerce enabled across borders without modification


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One set of communication technology, namely, Internet TCP/IP, HTML, browsers


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Message is not limited to text or audio; video, audio, and text all possible, with visual cues


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Consumer is engaged in a dialog, as a co-participant in discovering goods


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Currency, timeliness, accuracy of information increases; price transparency


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Messages possible to individuals not just groups; dialog can be tailored to appeal to individuals


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Thinking of many was:Thinking of many was:Universal accessUniversal accessInfo asymmetry reducedInfo asymmetry reducedMiddlemen disappearMiddlemen disappearExtraordinary profitsExtraordinary profitsEasy to segment marketEasy to segment marketProfit from efficienciesProfit from efficienciesDeconstruct traditional distributionDeconstruct traditional distribution

Everyone would have a computer, web access, quickly

ConcurrentConcurrentEra I visionsEra I visions

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Friction-free commerce, huge number of suppliers


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Disintermediation; manufacturers deal directly with consumers


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Lots of ways to profit from large new markets and marketing strategies


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Identify groups with different needs and price sensitivities


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Price very low to grab market share, enable low pricing through new efficiencies


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Gain visibility fast, “first movers” seek to replace traditional distribution channels


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Internet Era IIInternet Era II

• 2001 and onward

• New technological capabilities

• E-commerce learns from failures and successes of Era 1

• Predictions for the future?

• The impact of wireless (WiFi) access?

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Understandings neededUnderstandings needed

• Nature of electronic markets

• E-commerce business models

• Firm and industry value chains

• Consumer behavior in e-markets

• Privacy, regulation, taxation issues

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Business model Business model

• Set of Set of planned activitiesplanned activities designed to designed to make a profitmake a profit

• Business models apply to all types of Business models apply to all types of business, not just e-commerce business, not just e-commerce

• 8 ingredients8 ingredients of all business models of all business models

• Business plan:Business plan: document describing document describing the business modelthe business model

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1. Value proposition1. Value proposition2. Revenue model2. Revenue model3. Market opportunity3. Market opportunity4. Competitive environment4. Competitive environment5. Competitive advantage5. Competitive advantage6. Market strategy6. Market strategy7. Organizational development7. Organizational development8. Management team8. Management team

All factors of theAll factors of the business business modelmodel are are important to important to document in adocument in a business planbusiness plan

Business plan Business plan

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1. 1. Value propositionValue proposition2. Revenue model2. Revenue model3. Market opportunity3. Market opportunity4. Competitive environment4. Competitive environment5. Competitive advantage5. Competitive advantage6. Market strategy6. Market strategy7. Organizational development7. Organizational development8. Management team8. Management team

Heart of model.Heart of model.How the product How the product or service fulfills or service fulfills the needs of the needs of customers.customers.What is unique?What is unique?Why use us?Why use us?


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1. Value proposition1. Value proposition2. 2. Revenue modelRevenue model3. Market opportunity3. Market opportunity4. Competitive environment4. Competitive environment5. Competitive advantage5. Competitive advantage6. Market strategy6. Market strategy7. Organizational development7. Organizational development8. Management team8. Management team

How will the How will the business earn business earn revenue, revenue, generate profit, generate profit, produce a return?produce a return?


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Five major E-commerce Five major E-commerce revenue modelsrevenue models

Advertising modelAdvertising model

Subscription modelSubscription model

Transaction fee modelTransaction fee model

Sales modelSales model

Affliliate modelAffliliate model

Site content and Site content and services draw hits.services draw hits.Sell advertising, Sell advertising, banners, links.banners, links.User retention is User retention is called “stickiness”.called “stickiness”.One of earliest One of earliest models, now models, now copied and diluted.copied and diluted.

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Subscription Subscription charge for content charge for content or service.or service.Content must Content must have high added have high added valuevalue, not readily , not readily available available elsewhere, no easy elsewhere, no easy substitutes.substitutes.


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Fee for enabling Fee for enabling or executing a or executing a transaction.transaction.Like Ebay.com for Like Ebay.com for auction, or auction, or E-trade.com for a E-trade.com for a stock buy or sell.stock buy or sell.


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Sell goods.Sell goods.Physical:Physical: office office supplies, books, supplies, books, crafts, foods, crafts, foods, anything that could anything that could be sold mail order.be sold mail order.Electronic:Electronic: product product is downloaded. is downloaded. Services:Services: software software usage is “rented”usage is “rented”


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Referral fee or % Referral fee or % commission for commission for steering hits to a steering hits to a site.site.Maybe give Maybe give “points” incentive to “points” incentive to customers to shop customers to shop via the site links via the site links instead of directly instead of directly to sites.to sites.


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1. Value proposition1. Value proposition2. Revenue model2. Revenue model3. 3. Market opportunityMarket opportunity4. Competitive environment4. Competitive environment5. Competitive advantage5. Competitive advantage6. Market strategy6. Market strategy7. Organizational development7. Organizational development8. Management team8. Management team

Intended Intended marketspace.marketspace.Realistic Realistic opportunity opportunity defined by defined by revenue potential revenue potential of eachof each niche. niche.


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1. Value proposition1. Value proposition2. Revenue model2. Revenue model3. Market opportunity3. Market opportunity4.4. Competitive environment Competitive environment5. Competitive advantage5. Competitive advantage6. Market strategy6. Market strategy7. Organizational development7. Organizational development8. Management team8. Management team

How many How many competitors?competitors?How large?How large?Market share?Market share?How profitable?How profitable?Their price?Their price?


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1. Value proposition1. Value proposition2. Revenue model2. Revenue model3. Market opportunity3. Market opportunity4.4. Competitive environmentCompetitive environment5.5. Competitive advantage Competitive advantage6. Market strategy6. Market strategy7. Organizational development7. Organizational development8. Management team8. Management team

Having a:Having a:superior superior product,product,lower price,lower price,wider market, wider market, branding.branding.


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1. Value proposition1. Value proposition2. Revenue model2. Revenue model3. Market opportunity3. Market opportunity4. Competitive environment4. Competitive environment5. Competitive advantage5. Competitive advantage6.6. Market strategy Market strategy7. Organizational development7. Organizational development8. Management team8. Management team

Plan that Plan that shows how shows how you intend to you intend to enter a new enter a new market and market and attract attract customers.customers.Partnering?Partnering?Advertising?Advertising?Samples?Samples?


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1. Value proposition1. Value proposition2. Revenue model2. Revenue model3. Market opportunity3. Market opportunity4. Competitive environment4. Competitive environment5. Competitive advantage5. Competitive advantage6.6. Market strategyMarket strategy7. 7. Organizational developmentOrganizational development8. 8. Management teamManagement team

Plan that shows Plan that shows how the business how the business is going to be is going to be staffed as it staffed as it grows, and how grows, and how management management leads.leads.


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• B2C - business to consumer

• B2B -business to business

• C2C - consumer to consumer

• P2P - peer to peer

Let’s look at these Internet Let’s look at these Internet business models business models

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B2C B2C

1. 1. Portal Portal 2. E-tailer2. E-tailer3. Content provider3. Content provider4. Transaction broker4. Transaction broker5. Market creator5. Market creator6. Service provider6. Service provider7. Community provider7. Community provider

Integrated package Integrated package of content and of content and services, also ISP. services, also ISP. E-mail, news, chat E-mail, news, chat rooms, personals, rooms, personals, shopping. No shopping. No longer a “longer a “gatewaygateway” ” but a but a destinationdestination..

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1. Portal1. Portal2. 2. E-tailerE-tailer3. Content provider3. Content provider4. Transaction broker4. Transaction broker5. Market creator5. Market creator6. Service provider6. Service provider7. Community provider7. Community provider

Online retail store. Online retail store. Convenience of larger Convenience of larger selection, shop as selection, shop as needed at home or needed at home or work, ease of work, ease of searching and locating searching and locating vendors. vendors. Clicks and Clicks and mortarmortar (BestBuy) or (BestBuy) or pure playpure play (I-Tunes, (I-Tunes, Amazon)Amazon)

B2C B2C

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1. Portal1. Portal2. E-tailer2. E-tailer3. 3. Content providerContent provider4. Transaction broker4. Transaction broker5. Market creator5. Market creator6. Service provider6. Service provider7. Community provider7. Community provider

Digital news, photos, Digital news, photos, video, artwork. Almost video, artwork. Almost 15% of total online 15% of total online sales in 2000. sales in 2000. Revenue from Revenue from subscription fee. subscription fee. WSJ.com, e-zines.WSJ.com, e-zines.

B2C B2C

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1. Portal1. Portal2. E-tailer2. E-tailer3. Content provider3. Content provider4. 4. Transaction brokerTransaction broker5. Market creator5. Market creator6. Service provider6. Service provider7. Community provider7. Community provider

Financial services, Financial services, travel services, job travel services, job placement, retail placement, retail stock transactions. stock transactions. Web vs. phone. Web vs. phone. Convenience and Convenience and currency. Revenue currency. Revenue per transaction.per transaction.

B2C B2C

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1. Portal1. Portal2. E-tailer2. E-tailer3. Content provider3. Content provider4. Transaction broker4. Transaction broker5. 5. Market creatorMarket creator6. Service provider6. Service provider7. Community provider7. Community provider

eBay auctions, or eBay auctions, or reverse auctions like reverse auctions like PriceLine.com, PriceLine.com, where buyers where buyers proactively indicate proactively indicate interest to buy and interest to buy and what they are willing what they are willing to pay, negotiate, to pay, negotiate, tradeoff, “deal”.tradeoff, “deal”.

B2C B2C

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1. Portal 1. Portal 2. E-tailer2. E-tailer3. Content provider3. Content provider4. Transaction broker4. Transaction broker5. Market creator5. Market creator6.6. Service provider Service provider7. Community provider7. Community provider

Advice and consulting Advice and consulting service, grocery service, grocery shopping like PeaPod, shopping like PeaPod, vacation or vacation or investment planning. investment planning. Subscription fees, Subscription fees, one-time charge, or one-time charge, or commission; commission; micropayments micropayments (PayPal)(PayPal)

B2C B2C

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1. Portal1. Portal2. E-tailer2. E-tailer3. Content provider3. Content provider4. Transaction broker4. Transaction broker5. Market creator5. Market creator6.6. Service providerService provider7. 7. Community providerCommunity provider

Establish Establish communities of communities of people through a people through a common interest, common interest, like parenting, like parenting, gender, technology gender, technology forums, like forums, like specialized chat specialized chat rooms, blog sites.rooms, blog sites.

B2C B2C

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1. 1. Marketplace / Exchange (hub)Marketplace / Exchange (hub)

2. E-distributor2. E-distributor

3. Service provider3. Service provider

4. Matchmaker4. Matchmaker

5. Infomediary5. Infomediary

Digital marketplace,Digital marketplace,Like open air marketLike open air marketHorizontal - by productHorizontal - by productVertical - by industryVertical - by industryEg., Covisint (auto parts)Eg., Covisint (auto parts)

B2B B2B

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1. Marketplace / Exchange (hub)1. Marketplace / Exchange (hub)

2. 2. E-distributorE-distributor




Like an e-tailer, but the Like an e-tailer, but the customer audience is customer audience is other companies who other companies who buy in quantity at buy in quantity at wholesale. Catalog wholesale. Catalog online, orders and online, orders and payment arrangements payment arrangements are more complex.are more complex.

B2B B2B

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3. 3. Service providerService provider



TraditionalTraditional

Accounting, financial Accounting, financial services, HR services, HR management, payroll management, payroll outsourcing.outsourcing.

B2B B2B

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4. 4. MatchmakerMatchmaker


Transaction broker, hooks Transaction broker, hooks buyers up with sellers, buyers up with sellers, much like a real estate much like a real estate broker. Find cheapest broker. Find cheapest shipper, like iShip.com, or shipper, like iShip.com, or other commodity or unique other commodity or unique item online; Amazon used item online; Amazon used book links.book links.

B2B B2B

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5. 5. InfomediaryInfomediary

Custodian of customer Custodian of customer information, providing it information, providing it to others as requested. to others as requested. Now also includes firms Now also includes firms that gather customer that gather customer data and provide it to data and provide it to others for marketing.others for marketing.

B2B B2B

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1. B2C - business to consumer1. B2C - business to consumer2. B2B -business to business2. B2B -business to business3. 3. C2C - consumer to consumerC2C - consumer to consumer4. P2P - peer to peer4. P2P - peer to peer Consumer sells to Consumer sells to

consumer, facilitated consumer, facilitated by market creator like by market creator like eBay.com or eBay.com or Half.com. Profitable.Half.com. Profitable.

Business models Business models

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1. B2C - business to consumer1. B2C - business to consumer2. B2B -business to business2. B2B -business to business3. C2C - consumer to consumer3. C2C - consumer to consumer4. 4. P2P - peer to peerP2P - peer to peer Information sharing Information sharing

between consumers. between consumers. Runs into legal Runs into legal problems when problems when sharing things that sharing things that don’t belong to you!don’t belong to you!

Business models Business models

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Internet dangersInternet dangers

• Con artists exploiting the gullible, innocent, or “unaware”

• Real dangers of encouraging naïve users (“newbies”) to reveal too much personal information

• “The world’s biggest bathroom wall.”

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Internet dangersInternet dangers

• Blogs, “community” sites easily exploited by criminals

• How is this to be prevented?

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Spam, spoofing, phishingSpam, spoofing, phishing

• Spam: unsolicited advertising e-mail

• Spoofing: manipulating the apparent sender’s name to make spam look like

• Phishing: spam that spoofs an address of a bank or organization and asks you to “confirm” account details by entering personal information

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Opt-in, permission marketingOpt-in, permission marketing

• Opt-in: you agree to receive advertising, sales promotions, e-mails from a preferred vendor

• Permission marketing: a synonym for this phenomenon

• Term was coined 1997 by Seth Godin in a book of this name

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Opt-out, dangersOpt-out, dangers

• Opt-out: offers you a way to stop receiving more of the same

• Believable from a reputable vendor, especially one you have opted-in with

• Dangerous to accept the “opt out” button click on spam, since it just confirms that your address is “live”!

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Internet inequalitiesInternet inequalities

• “Digital Divide” is the gap between those who can participate meaningfully in the digitized world and those who are isolated from it

• What are the impacts of lack of access?

• What are the cultural impacts of modernization?

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Internet displacementsInternet displacements

• State governments and cities derive a portion of their revenues from sales taxes on goods sold; vendors collect and remit to state

• Commerce “hides” from state taxes

• As e-commerce has grown, has negatively affected sales tax revenue

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EndEnd

lecture slides 7 introduction to information technology e-business (c) 2006 jim janossy and laura...

Documents

value chain slide

ecommerce growth

definitions ebusiness

growing type of commerce

business transactions

b2b b2c

web sales

b2c internet era