Mc leod ch03

© 2007 by Prentice Hall© 2007 by Prentice Hall Management Information Systems, 10/e RManagement Information Systems, 10/e Raymond McLeod and George Schell aymond McLeod and George Schell

11

Management Management Information Systems, Information Systems,

10/e10/eRaymond McLeod and George Raymond McLeod and George

Schell Schell

© 2007 by Prentice Hall© 2007 by Prentice Hall Management Information Systems, 10/e RManagement Information Systems, 10/e Raymond McLeod and George Schell aymond McLeod and George Schell

22

Chapter 3Chapter 3Using Information Technology Using Information Technology

to Engage in Electronic to Engage in Electronic Commerce Commerce

© 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

3

Learning ObjectivesLearning Objectives► Recognize the importance and advantages Recognize the importance and advantages

of electronic commerce.of electronic commerce.► Understand how electronic commerce is Understand how electronic commerce is

being blended into everyday business being blended into everyday business processes.processes.

► Understand the difference between Understand the difference between business-to-business electronic commerce business-to-business electronic commerce and business-to-commerce electronic and business-to-commerce electronic commerce.commerce.

► Be familiar with examples of good business-Be familiar with examples of good business-to-business electronic commerce and to-business electronic commerce and business-to-consumer electronic commerce.business-to-consumer electronic commerce.


4

Learning Objectives (Cont’d)Learning Objectives (Cont’d)► Know the role that Interorganizational Know the role that Interorganizational

systems, the Internet, and the world Wide systems, the Internet, and the world Wide Web play in electronic commerce.Web play in electronic commerce.

► Know what factors influence the adoption of Know what factors influence the adoption of Interorganizational systems.Interorganizational systems.

► Recognize the movement from electronic Recognize the movement from electronic data interchange to various Web-standard data interchange to various Web-standard data exchange practices.data exchange practices.

► Understand why many firms choose to have Understand why many firms choose to have both a virtual store and a physical store.both a virtual store and a physical store.


5

Electronic CommerceElectronic Commerce►Electronic Commerce (E-Electronic Commerce (E-

commerce)commerce) refers to a business refers to a business transaction that uses network access, transaction that uses network access, computer-based systems, and a Web computer-based systems, and a Web browser interface.browser interface.

►Business-to-consumer (B2C)Business-to-consumer (B2C) refers refers to transactions between a business to transactions between a business and the final consumer of the product.and the final consumer of the product.


6

E-commerce (Cont’d)E-commerce (Cont’d)►Business-to-business (B2B)Business-to-business (B2B) refers refers

to transactions between businesses in to transactions between businesses in which neither one is the final which neither one is the final consumer. consumer.

►Electronic Government (E-gov)Electronic Government (E-gov) refers to transactions between a refers to transactions between a government agency and typically a government agency and typically a citizen.citizen.


7

E-commerce (Cont’d)E-commerce (Cont’d)►Main benefits to firms:Main benefits to firms:

Improved customer service before, during, Improved customer service before, during, and after the sale.and after the sale.

Improved relationships with suppliers and Improved relationships with suppliers and the financial community.the financial community.

Increased economic return on stockholder Increased economic return on stockholder and owner investments. and owner investments.


8

E-commerce (Cont’d)E-commerce (Cont’d)►Main constraints to firms:Main constraints to firms:

High costs.High costs. Security concerns.Security concerns. Immature or unavailable software.Immature or unavailable software.

►Scope of E-commerceScope of E-commerce WWW.CENSUS.GOVWWW.CENSUS.GOV Link to the E-stats Web page to find the Link to the E-stats Web page to find the

most current e-commerce figures.most current e-commerce figures.

http://www.census.gov/


9

Table 3.1 E-commerce SalesTable 3.1 E-commerce Sales


10

Business IntelligenceBusiness Intelligence►Business Intelligence (BI)Business Intelligence (BI) is the activity is the activity

of gathering information about the elements of gathering information about the elements in the environment that interacts with the in the environment that interacts with the firm.firm.

► External databasesExternal databases are commercial are commercial databases that, usually for a fee, provide databases that, usually for a fee, provide information and analyses on virtually any information and analyses on virtually any subject. subject. WWW.LEISNEXIS.COMWWW.LEISNEXIS.COM, , WWW.DIALOG.COMWWW.DIALOG.COM, , WWW.GXS.COMWWW.GXS.COM, , WWW.THOMASNET.COMWWW.THOMASNET.COM

http://www.leisnexis.com/

http://www.dialog.com/

http://www.gxs.com/

http://www.thomasnet.com/


11

Business Intelligence (Cont’d)Business Intelligence (Cont’d)►Firms use these databases to gather BI Firms use these databases to gather BI

because it is faster and less expensive because it is faster and less expensive than trying to research a wide array of than trying to research a wide array of information sources.information sources.

►Government databasesGovernment databases offer a wide offer a wide range of topics for researchers in range of topics for researchers in many fields. many fields. WWW.LOC.GOVWWW.LOC.GOV, , WWW.CENSUS.GOVWWW.CENSUS.GOV, , WWW.BLS.GOVWWW.BLS.GOV

http://www.loc.gov/

http://www.census.gov/

http://www.bls.gov/


12

Business Intelligence (Cont’d)Business Intelligence (Cont’d)►Firms are more inclined to initiate their Firms are more inclined to initiate their

own external searches for market own external searches for market intelligence. intelligence.

►Search engines are the most popular Search engines are the most popular means for people to obtain information means for people to obtain information available from the Web.available from the Web.


13

Business Intelligence (Cont’d)Business Intelligence (Cont’d)► Search engineSearch engine is a special computer is a special computer

program that asks a user for a word or program that asks a user for a word or group of words to be found. group of words to be found. WWW.GOOGLE.COMWWW.GOOGLE.COM, , WWW.YAHOO.COMWWW.YAHOO.COM, , WWW.MSN.COMWWW.MSN.COM, , WWW.ASKJEEVES.COMWWW.ASKJEEVES.COM

► Searches the content of web sites on the Searches the content of web sites on the Internet to see if the word or words are on Internet to see if the word or words are on any Web sites.any Web sites.

►Makes it possible to scan large volumes of Makes it possible to scan large volumes of information quickly, easily, and thoroughly.information quickly, easily, and thoroughly.

http://www.google.com/

http://www.yahoo.com/

http://www.msn.com/

http://www.askjeeves.com/


14

Figure 3.1 Search EnginesFigure 3.1 Search Engines


15

E-commerce Strategy & E-commerce Strategy & Interorganizational SystemsInterorganizational Systems

► Interorganizational system (IOS)Interorganizational system (IOS) is the is the strategy in which a firm is linked with strategy in which a firm is linked with transmissions of electronic data with other transmissions of electronic data with other firms so that all of the firms work together firms so that all of the firms work together as a coordinated unit, achieving benefits as a coordinated unit, achieving benefits that each could not achieve alone.that each could not achieve alone. Participating firms are called Participating firms are called trading partnerstrading partners, ,

business partnersbusiness partners, or a , or a business alliancebusiness alliance..


16

E-commerce Strategy & IOS E-commerce Strategy & IOS (Cont’d)(Cont’d)

►E-commerceE-commerce is fundamental to IOSs. is fundamental to IOSs.►Electronic data interchange (EDI)Electronic data interchange (EDI)

is a means for achieving an IOS; a is a means for achieving an IOS; a subset.subset.

►E-commerce and EDI are the highways E-commerce and EDI are the highways of IOSs.of IOSs.

►ExtranetsExtranets are another alternative. are another alternative.


17

IOS BenefitsIOS Benefits►Comparative EfficiencyComparative Efficiency is obtained is obtained

by the IOS because the trading by the IOS because the trading partners can produce their goods and partners can produce their goods and services with greater efficiency and services with greater efficiency and provide their goods and services at provide their goods and services at lower costs to their customers. (lower costs to their customers. (price price advantage over competitors)advantage over competitors)


18

Comparative Efficiency Comparative Efficiency ImprovementsImprovements

► Internal efficiencyInternal efficiency within the firm’s own within the firm’s own operations.operations. Gather & analyze data quickly.Gather & analyze data quickly. Make decisions faster.Make decisions faster.

► Interorganizational efficiencyInterorganizational efficiency gained by gained by working with other firms.working with other firms. Offer more products and services.Offer more products and services. Serve more customers.Serve more customers. Shift certain work to suppliers or customers.Shift certain work to suppliers or customers. Gather environmental data more easily.Gather environmental data more easily.


19

IOS BenefitsIOS Benefits►Bargaining PowerBargaining Power is the ability of a is the ability of a

firm to resolve disagreements with its firm to resolve disagreements with its suppliers and customers to its own suppliers and customers to its own advantageadvantage


20

Bargaining Power Bargaining Power ImprovementsImprovements

► Unique product featuresUnique product features enable firms to enable firms to offer better service to their customers in the offer better service to their customers in the form of easier ordering, quicker shipments, form of easier ordering, quicker shipments, and faster response times to requests for and faster response times to requests for information.information.

► This better service becomes a feature of the This better service becomes a feature of the firm’s products, making them more firm’s products, making them more appealing that similar products offered by appealing that similar products offered by competitors. competitors.


21

Bargaining Power Bargaining Power ImprovementsImprovements

► Reduced search-related costsReduced search-related costs can reduce can reduce the firm’s “shopping” cost that its customers the firm’s “shopping” cost that its customers incur in searching for a supplier, identifying incur in searching for a supplier, identifying alternative products, and getting the lowest alternative products, and getting the lowest price.price.

► The firm is a customer of its suppliers, the The firm is a customer of its suppliers, the firm can realize the same shopping-cost firm can realize the same shopping-cost reductions when ordering from its suppliers.reductions when ordering from its suppliers.


22

Bargaining Power Bargaining Power Improvements (Cont’d)Improvements (Cont’d)

► Increased switching costs Increased switching costs is when a firm is when a firm makes it more expensive, in cost and/or makes it more expensive, in cost and/or convenience, for customers to switch to a convenience, for customers to switch to a competitor.competitor.

► Providing customers with such information Providing customers with such information resources as hardware, software, and data resources as hardware, software, and data communications channels that would have communications channels that would have to be replaced if products were purchased to be replaced if products were purchased from another firm.from another firm.


23

IOSIOS►Vendor stock replenishment Vendor stock replenishment is a special is a special

type of IOS in that the customer trusts the type of IOS in that the customer trusts the supplier enough to allow the supplier to supplier enough to allow the supplier to access its computer-based inventory access its computer-based inventory system.system.

► The supplier initiates the replenishment The supplier initiates the replenishment process by electronically monitoring the process by electronically monitoring the firm’s inventory levels.firm’s inventory levels.

►Wal-Mart uses the IOS strategy extensively.Wal-Mart uses the IOS strategy extensively.


24

EDIEDI►EDI consists of direct computer-to-EDI consists of direct computer-to-

computer transmissions of data in a computer transmissions of data in a machine-readable, structured format.machine-readable, structured format.

►Older technology, but majority of B2B Older technology, but majority of B2B commerce use.commerce use.

►Enables data to be transmitted and Enables data to be transmitted and received without rekeying.received without rekeying.


25

EDI (Cont’d)EDI (Cont’d)►Equipment (communications lines, Equipment (communications lines,

hardware, etc.) and support services hardware, etc.) and support services provided by telephone companies provided by telephone companies (AT&T, MCI, et. al.)(AT&T, MCI, et. al.)

►Value-added network (VAN)Value-added network (VAN) is when is when the services that operate and manage the services that operate and manage the communications line (circuit) are the communications line (circuit) are provided in addition to the line itself.provided in addition to the line itself.


26

EDI (Cont’d)EDI (Cont’d)►EDI is the dominant implementation of EDI is the dominant implementation of

an IOS.an IOS. More that 2/3More that 2/3rdrd of e-commerce is of e-commerce is

conducted using EDI compared to other conducted using EDI compared to other alternatives.alternatives.

More costly 5,000-30,000 per year with a More costly 5,000-30,000 per year with a single vendor or customersingle vendor or customer

More bulky than newer IOS systemsMore bulky than newer IOS systems


27

ExtranetExtranet► ExtranetsExtranets enable the sharing of sensitive enable the sharing of sensitive

computer-based information with other computer-based information with other firms using information technology over the firms using information technology over the internet.internet.

► Used in collaboration with trusted suppliers Used in collaboration with trusted suppliers and large customersand large customers..

► Security and privacy are serious concerns, Security and privacy are serious concerns, so extranets are generally secured behind a so extranets are generally secured behind a firewall and use encryption such as firewall and use encryption such as PGPPGP..


28

Extranet (Cont’d)Extranet (Cont’d)►Firewall permits only authorized users Firewall permits only authorized users

to access the firm’s information.to access the firm’s information.►Extranets allow for the same type of Extranets allow for the same type of

data exchange as EDI.data exchange as EDI.►Extranets incorporate the common Extranets incorporate the common

protocols and communication protocols and communication networks of the Internet which results networks of the Internet which results in a great cost savings (EDI is costly to in a great cost savings (EDI is costly to use). use).


29

IOS Adoption Influences IOS Adoption Influences ► Proactive and reactive business partnersProactive and reactive business partners► Adoption influencesAdoption influences

Competitive pressuresCompetitive pressures (HIGH, firm is reactive in (HIGH, firm is reactive in adopting IOS, usually EDI)adopting IOS, usually EDI)

Exercised powerExercised power (powerful firm is proactive in (powerful firm is proactive in adopting/demanding IOS)adopting/demanding IOS)

Internal needInternal need (firms see participation as a way to (firms see participation as a way to improve)improve)

Top management supportTop management support (ALWAYS influences (ALWAYS influences the decision)the decision)


30

Figure 3.2 IOS AdoptionFigure 3.2 IOS Adoption


31

IOS BenefitsIOS Benefits►Direct benefitsDirect benefits

Reduced data entry errorsReduced data entry errors Lower costsLower costs Increased operational efficiencyIncreased operational efficiency

► Indirect benefitsIndirect benefits Increased ability to competeIncreased ability to compete Improved relationships with trading partnersImproved relationships with trading partners Better customer serviceBetter customer service


32

Figure 3.3 IOS Direct & Indirect Figure 3.3 IOS Direct & Indirect BenefitsBenefits


33

B2C Strategies for E-B2C Strategies for E-commercecommerce

► Important to understand B2C StrategiesImportant to understand B2C Strategies More products and services are becoming More products and services are becoming

available for digital delivery.available for digital delivery. More consumers are overcoming their reluctance More consumers are overcoming their reluctance

to purchase using the Web.to purchase using the Web. Higher communication speeds in homes has Higher communication speeds in homes has

made delivery of digital products practical.made delivery of digital products practical. Fear of information theft has been replaced with Fear of information theft has been replaced with

acceptance.acceptance.


34

Digital ProductsDigital Products► Entertainment – songs, albums, movies, etc. Entertainment – songs, albums, movies, etc.

WWW.SONY.COMWWW.SONY.COM ► Computer programs & updates – virus Computer programs & updates – virus

protection software, tax software, etc.protection software, tax software, etc.► Services – Services – WWW.LENDINGTREE.COMWWW.LENDINGTREE.COM ► Can be consumed as soon as they are Can be consumed as soon as they are

downloadeddownloaded► Purchasers incur a substantial cost of the Purchasers incur a substantial cost of the

transaction in terms of computer cost, transaction in terms of computer cost, online connection fees, storage media, and online connection fees, storage media, and so on.so on.

http://www.sony.com/

http://www.lendingtree.com/


35

Physical ProductsPhysical Products►Must be transported to the consumer.Must be transported to the consumer.►Shipment has to be arranged.Shipment has to be arranged.►Traditional delivery methods are slow.Traditional delivery methods are slow.►Faster delivery time options are costly.Faster delivery time options are costly.►Mail/shipping companies offers Mail/shipping companies offers

services such as online tracking that services such as online tracking that allows more information and control allows more information and control over delivery.over delivery.


36

Virtual vs. Hybrid SalesVirtual vs. Hybrid Sales►Virtual salesVirtual sales are those made by a firm that are those made by a firm that

does not operate a physical storefront.does not operate a physical storefront. Customer can’t enter and purchase the product.Customer can’t enter and purchase the product.

►Hybrid salesHybrid sales occur when firms have both a occur when firms have both a physical storefront and a Web site where physical storefront and a Web site where customers can purchase products.customers can purchase products. Brick-and-clickBrick-and-click operations. operations.


37

Virtual Sales ChallengesVirtual Sales Challenges►Provide necessary product information Provide necessary product information

without overwhelming the customer.without overwhelming the customer.►Communicating image files from the Communicating image files from the

web site to the customer’s computer web site to the customer’s computer can take time.can take time.

►Payment over the Internet has Payment over the Internet has suffered bad press – credit card fraud.suffered bad press – credit card fraud.


38

Hybrid SalesHybrid Sales►Most firms had storefronts before sales Most firms had storefronts before sales

over the Internet were possible.over the Internet were possible.►Necessary to their business plans.Necessary to their business plans.►Stores act as showcases for products.Stores act as showcases for products.►Convenience of shopping over the Convenience of shopping over the

Web.Web.►B2C sales means less inventory at its B2C sales means less inventory at its

store; more sales floor space.store; more sales floor space.


39

Virtual Sales (Cont’d)Virtual Sales (Cont’d)►Limit images displayed response time, Limit images displayed response time,

WWW.OFFICEDEPOT.COMWWW.OFFICEDEPOT.COM. . ►Secure data transfer of credit card Secure data transfer of credit card

information.information.►VeriSignVeriSign►PayPalPayPal

http://www.officedepot.com/


40

The Next Step for E-The Next Step for E-commercecommerce

►Mobile commerce (m-commerce)Mobile commerce (m-commerce) is the is the use of cell phones and use of cell phones and personal digital personal digital assistants (PDAs)assistants (PDAs) to engage in wireless e- to engage in wireless e-commerce.commerce.

► Third generation (3G) Third generation (3G) telecommunicationstelecommunications is data-capable is data-capable wireless technologies.wireless technologies.

► Europe purchased 3G licenses in 2000; U.S. Europe purchased 3G licenses in 2000; U.S. in 2004.in 2004.

► $40 billion per year global industry by 2009.$40 billion per year global industry by 2009.


41

M-commerceM-commerce►Early applications included news Early applications included news

services, financial information services, financial information alert/transactions, and banking.alert/transactions, and banking.

►Movie ticket purchases, parking Movie ticket purchases, parking payments, etc. gaining acceptance.payments, etc. gaining acceptance.

► Japan is 1Japan is 1stst country to have a 3G country to have a 3G carrier (almost all Japanese have a cell carrier (almost all Japanese have a cell phone).phone).

►U.S. only about 40% have cell phone.U.S. only about 40% have cell phone.


42

The Next Step … (Cont’d)The Next Step … (Cont’d)►Wireless Internet Hot spotsWireless Internet Hot spots are created are created

using a wired connection (for high using a wired connection (for high communications speed) and then broadcast communications speed) and then broadcast via a wireless access point to an area via a wireless access point to an area approx. 100 meters, Starbucks.approx. 100 meters, Starbucks.

►Business-class wireless computingBusiness-class wireless computing would provide fast wireless communication would provide fast wireless communication everywhere over the same communications everywhere over the same communications carrier as cell phones, Verizon. carrier as cell phones, Verizon.


43

Using the InternetUsing the Internet►The origin of the Internet can be traced The origin of the Internet can be traced

to 1969, when the U.S. government to 1969, when the U.S. government established a network called ARPANET. established a network called ARPANET.

►ARPANET demonstrated that it was ARPANET demonstrated that it was possible for a person to request and possible for a person to request and receive data over a complex network receive data over a complex network that included many computers and that included many computers and network connections.network connections.


44

World Wide WebWorld Wide Web►World Wide Web (WWW)World Wide Web (WWW) efforts began in efforts began in

1989 when Tim Berners-Lee came up with a 1989 when Tim Berners-Lee came up with a idea for physicists to communicate.idea for physicists to communicate.

►HypertextHypertext - electronic documents that are - electronic documents that are linked together.linked together.

► Physicists would be able to click on words or Physicists would be able to click on words or phrases displayed on their computer phrases displayed on their computer screens and retrieve the hypertext.screens and retrieve the hypertext.


45

WWW (Cont’d)WWW (Cont’d)►Hypertext became a reality in 1992.Hypertext became a reality in 1992.►HypermediaHypermedia is to transmit multimedia is to transmit multimedia

consisting of text, graphics, audio, and video consisting of text, graphics, audio, and video over the WWW.over the WWW.

►WWW (Web)WWW (Web) is information accessible via is information accessible via the Internet whereby hypermedia the Internet whereby hypermedia documents (computer files) are stored and documents (computer files) are stored and then retrieved by means of a unique then retrieved by means of a unique addressing scheme.addressing scheme.


46

WWW TermsWWW Terms►Web siteWeb site – collection of Web pages. – collection of Web pages.►Hypertext linkHypertext link – pointer (text or a graphic) – pointer (text or a graphic)

used to access hypertext stored at a used to access hypertext stored at a Website.Website.

►Web pageWeb page – hypermedia file stored at a – hypermedia file stored at a unique Website address.unique Website address.

►Home pageHome page – first page of a Web site. – first page of a Web site.►BrowserBrowser – software designed to find and – software designed to find and

read files on the Internet written in read files on the Internet written in hypertext markup language (HTTP)hypertext markup language (HTTP)


47

WWW Terms (Cont’d)WWW Terms (Cont’d)► Uniform resource locator (URL)Uniform resource locator (URL) – unique – unique

address of a Web page.address of a Web page.► ProtocolProtocol – set of standards that govern – set of standards that govern

communication of data (HTTP, FTP, URL). communication of data (HTTP, FTP, URL). ► Domain nameDomain name – address of the website where a – address of the website where a

Web page is stored.Web page is stored.► PathPath – certain directory/subdirectory and file at the – certain directory/subdirectory and file at the

Website.Website.► File Transfer Protocol (FTP)File Transfer Protocol (FTP) users can copy files users can copy files

onto their computers from any web site.onto their computers from any web site.


48

Figure 3.5 WWW TerminologyFigure 3.5 WWW Terminology


49

Understanding the Difference Understanding the Difference ► InternetInternet is a global communications is a global communications

network that connects millions of network that connects millions of computers.computers. Provides the network architecture.Provides the network architecture.

►WebWeb is a collection of computers acting as is a collection of computers acting as content servers that host documents content servers that host documents formatted to enable viewing of text, formatted to enable viewing of text, graphics, and audio as well as allowing graphics, and audio as well as allowing linkages to other documents on the Web.linkages to other documents on the Web. Provides the method for storing and retrieving its Provides the method for storing and retrieving its

documents.documents.


50

Cyberspace & the Cyberspace & the Information SuperhighwayInformation Superhighway

►CyberspaceCyberspace11 a society that had a society that had become a slave to technology.become a slave to technology.

►Information SuperhighwayInformation Superhighway describes a positive force that gives describes a positive force that gives everyone access to the wealth of everyone access to the wealth of information that exists in modern information that exists in modern society.society.

1 Term coined in 1984, author William Gibson Neuromancer


51

Internet StandardsInternet Standards►Internet SocietyInternet Society (1992) promotes (1992) promotes

commercial internet use.commercial internet use.►Internet Engineering Task force Internet Engineering Task force

(IETF)(IETF) responsible for Internet responsible for Internet standards.standards.

►World Wide Web Consortium World Wide Web Consortium (W3C)(W3C) responsible for Web standards. responsible for Web standards.


52

E-commerce & Hospital E-commerce & Hospital Supply Chain ManagementSupply Chain Management

► Hospitals conduct most of their purchases online.Hospitals conduct most of their purchases online. Only 5 % benefit compared to manual purchasing.Only 5 % benefit compared to manual purchasing.

► Hospitals can use a standard protocol such as the Hospitals can use a standard protocol such as the Internet to replace EDI.Internet to replace EDI. Global Healthcare Exchange (WWW.GHX.COM) help Global Healthcare Exchange (WWW.GHX.COM) help

hospitals implement clinical commercial exchangehospitals implement clinical commercial exchange Hospitals have hundreds, sometimes thousands, of Hospitals have hundreds, sometimes thousands, of

vendors, the savings is substantial.vendors, the savings is substantial.► Speed and ease of connection to a new vendor for Speed and ease of connection to a new vendor for

e-commerce is a strong incentive for change.e-commerce is a strong incentive for change. Analyze purchase requests.Analyze purchase requests. Find less expensive substitute or less costly vendor.Find less expensive substitute or less costly vendor.


53

Business Applications of the Business Applications of the InternetInternet

► Retailing Operations Retailing Operations Most of the large retail chains have established a Web Most of the large retail chains have established a Web

presence.presence. Retailers make their home pages directly accessible Retailers make their home pages directly accessible

through the Web.through the Web.► Virtual mallVirtual mall combine with other stores in a combine with other stores in a

collection sites.collection sites.► Retailing organizations changing the face of Web Retailing organizations changing the face of Web

information.information. WWW.AUTOBYTEL.COMWWW.AUTOBYTEL.COM WWW.AMAZON.COMWWW.AMAZON.COM

► Over 70% of Internet users make a yearly online Over 70% of Internet users make a yearly online purchase.purchase.

http://www.autobytel.com/

http://www.amazon.com/


54

Suggestions for Successful Suggestions for Successful Internet UseInternet Use

► Make sure your Web site is robust.Make sure your Web site is robust.► Make sure your browser and database structure are Make sure your browser and database structure are

both flexible and intuitive.both flexible and intuitive.► Emphasize content.Emphasize content.► Update often.Update often.► Look beyond customers.Look beyond customers.► Target content to specific users’ needs.Target content to specific users’ needs.► Make interface intuitive.Make interface intuitive.► Be in the right Web location.Be in the right Web location.► Create a sense of community.Create a sense of community.► Get help if you need it.Get help if you need it.


55

Future Impact of the Internet Future Impact of the Internet on Businesson Business

►E-commerce is growing in the U.S. and E-commerce is growing in the U.S. and worldwide (15% annually past 5 worldwide (15% annually past 5 years).years).

►3G and even faster 4G phone service.3G and even faster 4G phone service.► Increase use of cellular phones for Increase use of cellular phones for

purchases.purchases.

Mc leod ch03

Education