22:010:622 Internet Technology and E-Business Dr. Peter R. Gillett - - PowerPoint PPT Presentation

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22:010:622 Internet Technology and E-Business Dr. Peter R. Gillett - - PowerPoint PPT Presentation

22:010:622 Internet Technology and E-Business Dr. Peter R. Gillett Associate Professor Department of Accounting & Information Systems Rutgers Business School Newark & New Brunswick Dr. Peter R Gillett February 19, 2003 1


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February 19, 2003

  • Dr. Peter R Gillett

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22:010:622 Internet Technology and E-Business

  • Dr. Peter R. Gillett

Associate Professor Department of Accounting & Information Systems Rutgers Business School – Newark & New Brunswick

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February 19, 2003

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Overview

Web-Based Tools for E-Commerce E-Marketing (continued from last week) E-Darwinism Characteristics of Internet B2B CGI JavaScript and Java Creating a Web Page

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Web-Based Tools for E-Commerce

Site type

Development Intranet Transaction processing: B2B and B2C Content delivery

Web server hardware

Self-host Dedicated host Shared host

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Web-Based Tools for E-Commerce

Web platform choices

Unix Linux Windows NT & 2000

Web server performance evaluation Web server software and tools

Apache HTTP Server Microsoft IIS iPlanet (Netscape) Enterprise Server

Web Server Architectures

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Web-Based Tools for E-Commerce

Search engines Intelligent Agents Web server software features

Core capabilities

Responding to HTTP requests Indexing & Searching Data analysis

Site management Link validation Remote Server Administration Dynamic content

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E-Marketing Credits

S.-Y. Choi, D. O. Stahl, and A. B. Whinston: The

Economics of Electronic Commerce.. MacMillan Technical Publishing, 1997.

  • D. R. Lehmann, S. Gupta, and J. H. Steckel:

Marketing Research, Addison Wesley, 1998.

  • E. Turban, J. Lee, D. King and H. M. Chung:

Electronic Commerce, A Managerial Perspective. Prentice Hall, 2000.

  • K. M. Bayne: The Internet Marketing Plan, 2nd
  • Edition. J. Wiley & Sons, 2000.
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February 19, 2003

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E-Marketing

Basic market research on the Web

Yahoo:how do they make money? Blue Martini?

Classical market research on the Web Who?

Customers Potential customers Competitive intelligence

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Collecting Consumer Data on the Internet: Pros

Fast Cheap On-line response Deep and complex calculations running

the on-line responses

Collaborative filtering Data mining Principal components

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Collecting Consumer Data on the Internet: Cons

Biases

Income Age Gender, race, etc.

Time good or bad? New nontraditional methods

Are they well understood? Comparison to old methods?

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Interviewing Errors and the Internet

Researcher error Sample Measurement process Instrument Respondent Control How does the Internet affect each of these?

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Interviewing Errors and the Internet

http://www.worldopinion.com/

Service Min % Max % Houses with a Phone 87.4 in Miss. 97.9 Mass. Unlisted Phone # 64.6 in Las Vegas, 61.7 in LA-Long Beach. Houses on the Internet About 65% of US Households

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Bayne’s Old Marketer’s Tales

If you have money, then you can do anything. Any web site is better than none. All Internet marketing activities must generate

sales.

Major Internet marketing objective is to copy

your competitors site.

If you know what you are looking for, then

you can find it on the Internet yourself.

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Bayne’s Old Marketer’s Tales

IT Should be Your primary contact for all Internet

development efforts.

I-Marketing gets faster results than traditional

marketing.

I-Marketing, should, can and will replace traditional

marketing.

Successful I-Marketing requires all Internet tools,

technologies and techniques.

Traditional marketing principles apply to I-Marketing.

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A model of product/service attributes

Price Offering Customer relationship Brand image How are these leveraged (differently) by

the Internet?

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Traditional Leverage on Sub-Attributes

Price: discount, coupons Quality: guarantees Delivery/Fulfillment: follow-up, free

delivery

Design: ergonomics Availability: marketing communications

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Internet Leverage on Sub-Attributes

Price: discount, coupons Quality: guarantees, E-Return Policy Delivery/Fulfillment: follow-up, free

delivery, in some cases instant e-delivery

Design: ergonomics, customizers,

configurators

Availability: marketing communications, e-

tracking, e-catalogues, etc.

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Other attribute enhancers

Offering: e-partnerships and alliances Relationship: now has 24/7 component Service: internet checking that products are

working even very far away, in some cases instant service

Custom Ingredient branding: “Intel Inside.”

Search engine powered by Inktomi.

What about “Manufacturing branding”? “Made

is USA.”, “Bottled in France”?

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B2B vs B2C

What differences do we have to be

prepared for in E-Marketing B2B vs. B2C?

B2B customers have integrated order

information, good tracking and bidding

Corporate buyers may have their own

price schedules, etc.

Corporate buyer behavior differs from

individual buyers - how?

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Percent of B2B on the Internet

0.2% of all B2B on Internet in 1997 2.1% in 2000 9.4% in 2003 What does this mean? This is likely mostly logistics - what about

marketing?

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Some Examples from Logistics

Purchasing Depts. run bidding on the

Internet

Wal-Mart's famous Extranet and their

shared inventory management

Boeing’s external purchase order bidding GE is another leader

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GE’s TPN for its Lighting Division (low value parts)

TPN = Trading Processing Network. Set up by GE to make the costs of procurement

cheaper

Labor in procurement process down 30% 60% of procurement staff re-deployed Faster times:

18-23 days to search for suppliers, set-up, etc. Now it takes 9 to 11 days

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GE’s TPN for its Lighting Division (low value parts)

Automatic invoice reconciliation with

Purchase Orders, etc.

GE’s procurement depts. share this info

and process.

GE will always keep the details of their

purchase process

Helps GE’s suppliers, etc. Other advantages?

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E-Darwinism

NY Times: 29-May-2000, E-Commerce Report,

by Bob Tedeschi, page C5.

“A digital Darwinism thins the numbers of online

toy and craft stores. But while the fittest survive, some worthy examples perish.”

Randomness seems necessary in Darwin’s

Theory of Evolution through natural selection?

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E-Darwinism

http://www.redherring.com/investor/2001/0213/in

v-mag-92-delisted021301.html

873 firms de-listed in 1999 from NASDAQ 700 firms de-listed in 2000 from NASDAQ Lag due to up to 6 months for de-listing process:

Trading less than $1 per share for 30 business days Less than $4 million tangible assets Market cap < $5 million

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Some recent(ish) bankruptcies

toysmart.com, toys on the internet boo.com, selling clothes in many

languages and currencies

craftshop.com drkoop.com Other notables? Why?

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Some recent(ish) bankruptcies

Name Financing Marketing Other Costs Apparent Problem Toysmart.com $45 million $25 million $20 million Bad timing from Disney. Boo.com $135 million $65 million to $85 million $50 million to $70 million Slow Modem Connections. Unmanaged

  • Expectations. Timing

and execution issues. CraftShop.com $3 to $5 million Less than 1% of visitors purchased. Bad timing and bad execution.

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The Fallout of IPO Madness?

In 1999 US firms spent $109 Billion on

direct mail and phone marketing

Got direct revenues of just over $1 Trillion

from this marketing

This is about 10% of revenue on

marketing

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Characteristics of Internet B2B

Areas covered

Product, specs., price, sales history Customer, sales history, forecasts, refining JIT Supplier, product lead times, sales terms and

conditions

Production process, capacities, commitments,

product plans

Transportation, carriers, lead times, tracking Inventory, level maintenance, carrying costs, location

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Characteristics of Internet B2B

Supply-chain alliance, key contracts, partner’s roles

and responsibilities, schedules

Competitors, benchmarks, competitive offerings,

market share issues

Sales and marketing, point of sale, promotions Supply chain process and performance, process

descriptions, performance measures, quality, delivery time, customer satisfaction

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Characteristics of Internet B2B

Supply Chain:

What is the value added for Internet

marketing for these pathways?

Upstream: manufacturing & suppliers and

service

Internal manufacturing and packaging,

targeting and marketing

Downstream: distribution & sale

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Characteristics of Internet B2B

The Virtual Corporation

Supply chain Partnering Compatibility!

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Characteristics of Internet B2B

Supplier-Oriented Marketplace

Reduce operating costs Enhance technical support Reduce technical support staff costs Special Case: reduce Software distribution

costs

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Characteristics of Internet B2B

Buyer-Oriented Marketplace Benefits to Buyer

Identifying partnerships and suppliers Strengthening relationships & streamlining source process with

current business partners

Rapidly distributing spec. information to partners Transmitting e-drawings, etc., to multiple suppliers

simultaneously

Cutting sourcing cycle times & reducing costs for goods/services Quickly receiving comparable bids from a large number of

suppliers, leads to better prices

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Characteristics of Internet B2B

Buyer-Oriented Marketplace Benefits to Seller

Boosted sales Expanded market research Lower costs for sales and marketing activity Shortened selling cycle Improved sales productivity Streamlined bidding process

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CGI Scripts (by T. Ziegler)

What? Common Gate Way Interface -

another protocol

Why CGI?

HTML’s weaknesses!

Some flavor of Unix Perl: a ‘scripting language’

Good: Easy to use Bad: runs on your server! Good or Bad: many ways to do things

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CGI Scripts (by T. Ziegler)

Guest book example:

<form method=POST action =

"http://your.host.com/cgi-bin/guestbook.pl”>

Your Name:<input type=text name=realname

size=30><br>

E-Mail: <input type=text name=username

size=40><br>

</form>

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CGI Scripts (by T. Ziegler)

What does “guestbook.pl” do? Where does it do it? Can this be a security problem? Other problems or issues?

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JavaScript (by Thau!)

Points out that CGI appears to work ‘semi-

interactively’

Form based Runs on someone’s server

JavaScript:

Runs on client machine! Gives much more interactivity and distribution

  • f computation
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JavaScript (by Thau!)

JavaScript is a complete programming

language and not a protocol

JavaScript is NOT Java (or even

particularly closely related)

Netscape & JavaScript ECMAScript , Microsoft & JScript

JavaScript runs in browsers, only! JavaScript intermingles with HTML directly

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<html> <head> <script language=“JavaScript> <!-- hide from old browsers JavaScript here // end JavaScript here ---> </script> </head> </html>

JavaScript (by Thau!)

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Java

Interpreted Object Oriented Programming

Language

OO Like C++ Interpreted like Basic or JavaScript Can work in browsers: Java Applets Can work on its own

Sun Microsystems and Bill Joy

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Java

Why is Java Interpreted?

Why is this very useful for the Web? Whose machine does an applet run on? What problems could this lead to? Run-time security

Why is Java Object Oriented?

Large scale development Large libraries of useful functions

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Java

Java is not public domain Java is largely machine independent

Java Byte Codes

JVM---Imagine a Java Virtual Machine on

every desk top

Interpreters and performance Security checks and performance

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Creating a Web Page

See the RUCS materials for fuller details Create a “HomePage” directory on your local machine Build your web pages:

WORD Netscape Composer FrontPage Hot Metal etc.

Name the top level page “index.html” Telnet to your home directory on eden/pegasus using

your account name and password

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Creating a Web Page

Create a subdirectory public_html:

md public_html

Enable public access:

chmod a+xr public_html

Logout ftp the content of the “HomePage” directory to

public_html

ftp ftp.eden.ruters.edu Login using your account name and password cd public_html put C:\HomePage\index.html etc.

Test! Test! Test!

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Creating a Web Page

Work incrementally Index Page

Set background color to a browser-safe color

  • #FFFFCC

Set your name as Heading 1 Add a hypertext reference to another page

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Creating a Web Page

Other page(s)

Use at least two levels of heading Add a hypertext reference to another part of the same

page

Add a hypertext reference to a page on another Web

Site

Use an unnumbered list Incorporate an image file Include text

In different colors In bold In italics

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Creating a Web Page

Add some PHP (!) Add some JavaScript Next week we will look at adding ASP . . .