ch07 - Chapter 7 Doing Business on the Internet Managing...

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1 Chapter 7 Doing Business on the Internet Managing and Using Information Systems: A Strategic Approach, 2 nd ed.
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2 INTRODUCTION E-business occurs when buyers and sellers interact electronically. While this area is changing so rapidly that text-based materials are usually out of date before they are used, it is also a field that is too important to ignore. Chapter 7 therefore provides a basic understanding of the ideas used in discussions on current Internet activities.
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3 OVERVIEW OF THE INTERNET
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4 Some Definitions Internet : Interconnected network of millions of individual computers with no central computer. World Wide Web : Popular method for accessing Internet information, utilizes hypertext to link documents. WWW not synonymous with Internet Information Superhighway : High-speed, global communications network – arguably synonymous with the Internet. (Not invented by Al Gore) Intranet : Internet-style information used exclusively within an organization, inaccessible by outsiders. Extranet : A company’s inter-organizational information unavailable to users of its intranet or to the wider Internet community .
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5 TCP/IP TCP/IP (Transmission Control Protocol/Internet Protocol) was the breakthrough technology making interoperability between networks possible and thus allowing the Internet to work Protocols “are the specifications for the interface between 2 computers, and they set standards to define how computers communicate with each other to accomplish specific tasks” IP “defines a connectionless service through which data is delivered from computer to computer”
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6 TCP/IP Packet HEADER DATA TRAILER Computer Address of Sender Computer Address of Receiver Packet Length Data Checksum Regular Mail Return Address Address Letter Figure 7.1 Comparison of Letter and TCP/IP Packet
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7 E-Marketplaces E-Marketplace: special type of network that brings different companies together. Sometimes called net-markets, they are typically built by a consortium of businesses in a market, or by an e-business interested in providing the marketplace. Both vertical and horizontal e-marketplaces exist.
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8 Types of E-Businesses Pure-plays exist only in the virtual space. Extensions of an existing physical business that have transitioned to the virtual space and offer a similar product line. Extensions that have evolved into businesses distinct from their physical counterparts. Partners that exist on another business website such as Toys ‘R Us on e-Bay
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9 EVOLUTION OF E-BUSINESS
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10 Electronic Data Interchange (EDI) Is the direct computer-to-computer transfer of business information between two businesses using a standardized format (e.g., ANSI X12) EDI automates the information flow (next slide) and facilitates management of a business process, such as purchasing, shipping and payment However, EDI never lived up to early growth projections due to the set-up effort required
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11 Electronic Funds Transfers (EFT)
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This note was uploaded on 07/31/2011 for the course ISM 4300 taught by Professor Staff during the Fall '08 term at University of South Florida - Tampa.

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ch07 - Chapter 7 Doing Business on the Internet Managing...

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