Business Impact

Introduction

     Many businesses are recognizing opportunities in on-line activities. In newspapers and magazines, we constantly see URLs listed. For example, MasterCard International, Morgan Stanley Dean Witter and Toyota USA, is may look familiar of URLs. On television, we are flooded with URLs, such as Six Flags Theme Parks, Environment Defense Fund and Dell Computer Corporation. On the radio, you will hear announcers giving out URLs almost constantly. Some radio announcers still do not know how to read URL; nevertheless, they continue to try and most are getting the hang of it. Several large computer companies have television ads trying to convince you that it is safe. Consumers are worried that businesses are going to �find out everything about them�. Businesses are concerned, because they are not knowledgeable enough about the Internet. Business on the Web is still in its infancy, because many questions remain unanswered.

• On-line Businesses
  • The Internet functions nicely as a way to facilitate communications both within and between companies.
  • Internet also excellent venue for advertising and conducting trade with consumers.
  • It is currently possible to shop for goods and services through on-line catalogs, subscribe to on-line versions of magazines and newspapers.
  • Internet is transforming the marketplace into a global environment.
  • For companies, more potential customers; for consumers, that means a greater selection of services and products.

      The following are a few of the new and interesting business models on the Internet.

1. Advertising
2. Marketing
3. Partnership
4. Software

• Sample Companies
  • FedEx eBusiness Tools
  • ONSALE, Inc
  • Net Grocer

• On-line Business Hurdles
  
• Business and Safety or Security on the Web
  
• Legal Environment
• Instantaneous Communication
• Global Access
• Instantaneous Customization
• Always Open
• New Channels
• E-Shopping

On-line Business Hurdles

• Probably the most significant consumer concerns about doing business on-line are privacy and security.
• When disclosing personal information and revealing spending habits on-line, consumers want assurance that the information will go no further.
• It may be a bit unsettling to revisit a Web page and have them ask if you would like to pick up where you left off.
• Some users could also get nervous if their favorite on-line catalog remembers their hat sizes, shoe sizes and credit card numbers.
• These data are actually stored on hard disk in a file usually called cookies. They may also be stored in a cookies directory.

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Business and Safety or Security on the Web

• It is as safe to do business on-line as it is to conduct business in other ways.
• In reality, even the normal use of credit cards is not without similar risks. When ordering by credit card over the telephone, we trust the retailer to handle our information with care and confidentiality.
• Mechanisms for ensuring secure payments are currently being developed in the private sector.
• Secure Electronic Transactions (SET) is a new technical standard to be implemented by Visa and MasterCard to make credit payments over the Internet more secure.
• Other payment options being developed include electronic money.
• Business transactions over the Internet are becoming more widespread and also more secure.

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Legal Environment

• Secure payments may scare some potential on-line consumers; issues concerning the legal implications of doing business on-line have discouraged some companies from taking their businesses on-line.
• Consumers and businesses recognize that electronic commerce is new and uncharted territory.
• Without a predictable legal structure and without a guarantee that governments will not suddenly impose taxes and tariffs on trade conducted over the Internet, a number of companies find the risk too overwhelming.
• However, this number is probably small compared to the pragmatic and legitimate concerns that Web page visits will not translate into sales.

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