ADM2372 – Chapter 3
The Internet and E-Business
Business and the Internet
- Disruptive Technology
- Evolution of the internet
- Accessing and Providing Internet Information
- Business Basics
- E-Business Models
- Organizational Strategies for E-Business
- E-Business Benefits, Challenges and Success
- New Trends in E-Business: E-Government and M-Commerce
How can a company like Polaroid and Kodak go bankrupt?
- Lack of product diversification
- Implies that the organizations which cannot adapt to the new demands, will
Disruptive versus Sustaining Technology
- What do steamboats, transistor radios, and Intel’s 8088 processor all have in
o Disruptive technology – a new way of doing things that initially does
not meet the needs of existing customers.
They are not necessarily needed by customers, but they create
o Sustaining technology – produces an improved product customers
are eager to buy.
What is it? Was it a disruptive or sustaining technology?
• One of the biggest forces changing business is the Internet
• Organizations must be able to transform as markets, economic
environments, and technologies change
The internet is for learning, communicating, banking, purchasing, doing business
with organizations, downloading, uploading,
Evolution of the InternetWorld Wide Web (WWW)
Hypertext Transport Protocol (HTTP)
- The standard that supports the exchange of information on the WWW
HTTPS = Hypertext Transport Protocol Secure (Authenticated Secure website)
- The internet is a network of networks
- The world wide web is a global hypertext system, with hyperlinks. Internet
uses the world wide web to transport information.
What is the impact of the Internet on information?
- We used to access information before the Internet, using books,
- Now the credibility of information is questionable
- The quantity of information is much larger, and the depth (richness) of
information is also much higher.
- Now you can market coloured pictures, anywhere you want, and access
- The reach was limited before.
- Easy to compile
- Increased richness
- Increased reach
- Improved content
The internet makes it possible to perform business in ways not previously
It can also cause a digital divide, how?
Digital divide – when those with access to technology have great advantages over
those who don’t.
- Some people from third world countries for example, won’t have access to
the information on the internet.
- Cost and Infrastructure are lacking in certain regions.
- Small towns in India are now relying on bikes with computers and wireless
- It increases the gap between people who have internet, and not.
What is Web 2.0 User participation.
The key difference between Web 1.0 and 2.0 is that we used to download, now we
download and upload. User participation is more dynamic.
“New version” of the World Wide Wed.
- A set of economic, social, and technology trends that collectively form the
basis for the next generation of the Internet - Characterized by user participation, openness, and network effects.
- Britannica online vs. Wikipedia?
Accessing Internet Information
Four tools for accessing Internet information
• Intranet - Internalized portion of the internet, protected from outside access,
• Extranet - An intranet that is available to strategic allies
• Portal - Web site offering broad array of resources & services
• Kiosk - Publicly accessible computer system that allows interactive
information browsing. (Like Chapters)
Three common forms of service providers
- Internet service provider (ISP)
o Provides individuals and other companies access to the Internet
- Online service provider (OSP)
o Offers an extensive array of unique Web Services