E-Business Lecture Slides

E-business B. Ghansah Introduction to e-Business (definition, concept) Growth of e-Business Internet and e-Business E-business technology  Definitions Electronic business (e-business) can be defined as the use of the internet to network and empowe...

E-business B. Ghansah Introduction to e-Business (definition, concept) Growth of e-Business Internet and e-Business E-business technology  Definitions Electronic business (e-business) can be defined as the use of the internet to network and empower business processes, electronic commerce, organizational communication and collaboration within a company and with its customers, suppliers, and other stakeholders. Electronic business utilizes internet, intranets, extranets and other networks to support their commercial processes. Electronic commerce (e-commerce) is the buying and selling, marketing and servicing of products and services via computer networks.  Since e-business includes the process of transacting with suppliers and customers there is an overlap in activities with e-commerce. e-commerce can best be conceived as a subset of e- business. Where the two concepts overlap is in the buying and selling of products and services. Nv m vvvvvvvvhb aZS The relationship between e-business and e-commerce KEY DIFFERENCES BETWEEN OLD AND NEW ECONOMY ADVANTAGES OF USING THE INTERNET  E-business technology The development of the internet; The World Wide Web (WWW); Information infrastructure; Electronic Data Interchange (EDI); Program languages; Industry standards; Wireless technology; Interactive television; Payment systems.  The development of the internet Historical perspective  The World Wide Web (WWW); Perhaps the most significant development in bringing forward the application of business via the internet was the emergence of the World Wide Web (WWW). The usability of the internet was greatly enhanced after researcher Tim Berners Lee developed the hypertext transfer protocol (HTTP) at the CERN atomic research centre in Switzerland in 1993. Through HTTP it is possible to use a hypertext markup language (HTML) to design web pages with text, graphics and a range of other formatting techniques to create a visually appealing layout, as well as linking documents electronically to other documents.  Information infrastructure The information infrastructure is the support system that allows the internet to work. The main infrastructure support facilities exist in developed nations where access to the internet has moved beyond fixed location computers to incorporate mobile wireless computers and mobile phones.  Electronic Data Interchange (EDI) Electronic Data Interchange (EDI) describes the exchange of documents between organisations in standardised electronic form directly between computer applications. Many routine and procedural processes between organisations are automated and completed electronically using EDI. Purchase orders, invoices and material releases are just some examples of these processes where EDI can result in cost savings and increased efficiency  key features of EDI The use of an electronic transmission medium; The use of structured, formatted messages based upon agreed standards; The fast delivery of electronic documents from sender to receiver; The direct communication between applications and systems.  The key benefits associated with EDI include Lower costs in administration and processing; Lower costs in posting and preparation of transactions; Increased efficiency in transaction processing; Eliminating paper-handling tasks; Reducing errors; Quick exchange of documents which reduces the business cycle; Lower inventory costs; g Increased customer service.  Programming Languages Technology development lies at the heart of e-business. In order to communicate with others via a computer it is necessary to access a program language. A program language facilitates the development of a set of instructions from the programmer that constitutes a computer program. The instructions must be translated by a language translator into the computer’s own machine language before they can be processed. Generation of programming languages  Industry Standards The internet allows a wide range of applications and functions through a single interface. The quality of service is enhanced by developing an integrated system that allows the free flow of information between all parties in the supply chain. Despite the real benefits that integration would bring, an all- encompassing and universally acceptable system has yet to be developed. Although there are some technological reasons for the lack of a common standard most arguments revolve around business concerns in general and sustaining competitive advantage in particular.  The internet allows a wide range of applications and functions through a single interface. The quality of service is enhanced by developing an integrated system that allows the free flow of information between all parties in the supply chain. Despite the real benefits that integration would bring, an all- encompassing and universally acceptable system has yet to be developed. Although there are some technological reasons for the lack of a common standard most arguments revolve around business concerns in general and sustaining competitive advantage in particular. Key business capabilities of integrated e- marketplace systems  Wireless technology Wireless technology has been the catalyst for structural change in the internet economy since it first emerged as a viable e-business channel in the 1990s. The lack of mobility is a shortcoming of traditional e- business models (Ropers, 2001). Wireless technology is driving the emergence of new business models that exploit opportunities beyond the e- business paradigm  The emergence of mobile internet networks can be viewed as one of the most significant media opportunities presented to firms across a wide range of industry sectors. Enabling synchronous and asynchronous interconnections via many devices and multiple information Webs, the mobile internet is capable of broad-based applications in business including the tracking of assets, accessing customer information, initiation of transactions and the leveraging of brands off the ‘wired’ internet to widen connections with their customer base.  Interactive television Television as a medium has been enhanced by computer functions. Instead of competing with each other, television and computers have a vested interest in each other’s welfare. The exploitation of synergy between the two media has created new business opportunities for firms across the supply chain of multimedia. Interactive media is a prime example of new technology driving change across many industries including broadcasting, communications, manufacturing and advertising.  Interactive television applications Electronic programme guides (EPG) Interactive entertainment guides (IEG) Answer questions in real-time during interactive game shows Home shopping, banking, etc. Customised and localised information, e.g. traffic, weather View multiple screens simultaneously Interactive polls and surveys Interactive sports Gambling and betting Video-conferencing Interactive advertising Distance learning Photo display services Interactive music selection Instant messaging E-mail Direction control, e.g. switch cameras during a sports broadcast  Payment systems There are many payment service providers such as WorldPlay and Kaji, but it is PayPal that leads the market. Most businesses accept payments via their website and companies such as PayPal facilitate safe methods of transacting. Online traders can open a payment service by accessing the website of the payment service provider and simply click through for details relating to online trading. From there, online traders need only complete an application form to become a client of the payment service provider. Most providers offer some level of protection for their client’s customers should there be a problem with a transaction such as fraud or non-delivery of goods.  One of the most important aspects of secure payment systems for e-business and e- commerce is the authenticity of transactions. The most common software used for this purpose is Secure Sockets Layer (SSL) developed by Netscape. SSL makes use of digital certificates to authenticate transactions. Most credit card transactions are protected by SSL. Another authenticity system is Secure Electronic Transaction (SET). This is a payment mechanism for confirming authenticity of both buyer and seller. Each party to a transaction has to obtain a digital certificate from a registered certification authority (the post office and BT are two examples of these). The certificate is contained within a relevant machine, and the credit card details contained within it can only be decrypted by the issuing card company Thank you