How do you do business on the Net?

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1 How do you do business on the Net? Objectives: be sure you understand: Basic issues of EC Designing Web pages 1 Internet Issues Facing Electronic Commerce (EC) Some Basic Concepts Businesses conducive to the web Customer Service Life Cycle Demand, Innovation & Inefficiency risks & how EC can help address Electronic Data Interchange (EDI) Security Electronic Payment Issues Integrated Internet Marketing 2 EC in the workflow process Material Supplier Manufacturer Transportation Warehousing Retail Consumers Source: EDI Council

2 Which Businesses can pursue Electronic Commerce? Are your customers oriented towards the web? Are your products conducive to the web? Exploit the web through the customer life cycle. requirements, acquisition, ownership, retirement 4 Three Risks of Business Demand Risk Smith Corona typewriters Innovation Risk Internet and Travel Agents Inefficiency Risk Flower shops 5 EDI Definition Company to company electronic exchange of transactions based on an agreed upon standardized data format. Benefits save cost and time from: no rekeying of data acknowledgment reduced paper increased customer service expand customer or supplier base Risks Security / Interception Who pays for noncompletion? 6 2

3 EC and Security Encryption Cryptography Public vs. private keys Firewalls Proxies anonymity filters manage bandwidth 7 EC and Encryption Cryptography (mathematical key is or Public key versus Private key Anne Encrypted Message Internet Bob Anne Bob s public key Encrypted Message Internet Bob s private key Bob 8 Emoney Payment Issues Authorizing Validating How pay for stuff? Credit cards and security 9 3

4 Nature of Electronic Marketing Technology of: Mass Marketing Storyboards and desktop publishing Direct Marketing Databases and statistical tools Interactive Marketing Information Servers, Client browsers, Bulletin Boards, Software Agents Objective Volume Sales Bounded Sales and data for analysis One-to-one marketing Data for analysis, customer relationships, new product ideas, volume sales 10 Integrated Internet Marketing the coordination of Internet facilities to market products and services e.g., Reykjavik Advertising uses its logo for web paging directions e.g. TidBITS, a Macintosh aficionados electronic newsletter wide range of services with minimal administration 11 Internet Advertising Different approach to revenues payment when advertisement is clicked payment when page impression is viewed reciprocal payments for showing each others advertisements pay more for more timely information delayed stock quotes cheaper than up-to-the-minute ones 12 4

5 Guidelines for Internet Advertising Don t send intrusive messages Don t sell consumer data without express permission Focus advertising to related news groups and list servers Full disclosure on promotions or direct-selling Informed consent for consumer research Data gathering should not be hidden 13 Leveling the Playing Field Creativity and Innovation Company size not as important Techniques Buying Mailing lists on CD-ROM Network on the Net Send Customers the Fax Get Thee to a Home Page Brew the Right Mix 14 Designing a Web site... What makes a site appealing or not appealing? What works for you? What do the experts say? 15 5

6 DESIGNING WEB SITES Potentially 40 million people will see your product... State purpose clearly & concisely. Make your web site easy to navigate. Remember bandwidth issues. Offer a benefit to the viewer. Don t let your web site go stale. Potentially 40 million people will see your mistakes. 16 New Data Structures 1 megabyte of digital information is about: 5 pictures Graphics a 700 page book Text Images Multimedia Numerical Data Hologram Animation Audio Video 50 spoken words 3 seconds of video 17 Some concluding thoughts... Internet is here to stay. The network is the computer telecommunications will be a vital component. Electronic commerce will be a hot area for the future. Is this good??? 18 6

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