ITAB - UNIT 4 (MID)

• Internet (international network) is a large network used by business organizations to establish e-business and e-commerce websites.
• World wide web provides unrestricted access to and publishing of information over the internet using web browsers
• E-business refers to any online-run business
• E-business considered as a technique used by business organizations to improve business strategy and be more productive and profitable through the use of IT.
• Computer network refers to the connection between computers to share information and resources
• Personal area network used to allow communication between devices close to each other. Examples are printers, scanners, personal digital assistants and game console
• Personal area network allowable distance for these devices to connect ranges from 20 to 30 feet
• Local area network is one of the most commonly used computer networks that cover a small area such as house, room, building
• Campus area network is specifically used for academic institutions
• Metropolitan area network is within the area of a town or city
• Wide area network used within regional or national areas
• International network considered the largest computer network that allow users to access without restrictions
• Intranet is the internal network of a business, meaning only authorized users can access through the internet
• Intranet uses web browsers and file transfer applications, under supervision and control of the business
• Extranet is the network of business that has limited scope, giving access only to trusted entities
• Internet is the largest network consisting of interconnected government, private, public, academic, and business entities
• Internet is offered and managed by service providers
• E-business has the ability to transmit and transform business information and use it to achieve competitive advantage
• Evans and Wurster - Strategies and the New Economics of Information
• Three basic characteristic of information - reach, richness, affiliation
• Reach is the potential number of local and international customers of a business that can interact with each other
• Reach is the number of categories and products that can be covered in a consumer interface
• Richness is the information that business can share to their consumers
• Affiliation is the effectiveness of the linkages between businesses
• Risk of e-business are strategic and practical risk
• Strategic risk - business makes a wrong decision to invest in e-business
• Practical risk - poor customer service, problems with online orders
• Electronic commerce, also known as e-commerce, are commercial transactions executed online using the internet
• Features of e-commerce - ubiquity, global reach and security, universal standards, richness, interactivity, information density
• Ubiquity - marketable transactions are accessible anytime, anywhere in the world
• Global reach and security - allows company to get customers anywhere in the world
• Global reach - also know as worldwide access, is the maximum number of possible consumers a business can reach
• Security - essential when working globally
• Universal standards - website that can be operated on a standard platform which follows identified methods and systems
• Universal standards - employs an easy-to-use e-commerce website with a simple design and content
• Richness - volume of the content of the website and the way it is used by consumers
• Interactivity - relationship between a consumer and an e-commerce website
• Information density - amount of products that can fit on a computer screen
• Business-to-business - businesses provide products or services to other businesses
• Business-to-business - example is wholesaler selling products toa retailer