eBusiness / eCommerce Innovations in 2002

Discussion led by Bruce Brorson June 18th, 2002

About this Workshop

Intended Audience

Business and Government Leaders, Entrepreneurs, Internet Service Providers and Developers, Individuals interested in the Internet as a business platform. To examine the impact of the Internet on our personal and business lives. To provide a glimpse of the eBusiness trends and technology innovations that will impact individuals and businesses in upcoming months. To take time to discuss the interests of workshops participants and examine topics to guide interaction through the workshop.

Objectives

The Internet

As of March 2002 603 million household computers were in use worldwide 50.4% of all US households, 49.9% of Western European households and 38.3% of all Asian/Pacific households. Number of Internet users worldwide? 533 million - as of May of 2002 445 million have access at home. The United States alone has 149 million Internet users. As of April of 2002, more than 25.2 million surfers at-home in the United States accessed the Internet via cable modem, DSL, broadband wireless, or high speed satellite services. That number represents a 79% growth from April of 2001 and the growth is accelerating. 17% of all Internet users in the US access by broadband.
Statistics Available at http://www.cyberatlas.com http://www.cyberatlas.com

The Internet the Business Numbers

IDC recently reported that online ecommerce sales in 2001 topped $680 billion (a 68% increase from 2000) and that projections for 2002 are that ecommerce transactions will top $1 trillion. Most (but not all) top etailers now have their roots in a traditional business model.
1. 2. 3. 4. 5. 6. 7. eBay Amazon.com Columbia House ToysRUs Barnes and Noble Apple Computer Best Buy.

In 2001, eMarketer found 78 percent, or 5.9 million, of all U.S. small businesses are connected to the Internet and nearly half have active purposeful Web sites.
Statistics Available at http://www.cyberatlas.com http://www.cyberatlas.com

The Internet More Business Numbers

Of the 501 small business owners/managers with less than 100 employees that were surveyed for the OPEN Small Business Network 2002 Monitor from American Express, 66 percent revealed that they have integrated the Internet as a tool to help them run their businesses.

Common online business activities included: Making travel plans / purchasing office supplies, equipment or other business services (tied at 36 percent) Conducting industry or market research (34 percent) Marketing or advertising (29 percent) Networking with other entrepreneurs (24 percent) Purchasing goods from wholesalers (22 percent) Managing accounts and making payments (16 percent)

Statistics Available at http://www.cyberatlas.com http://www.cyberatlas.com

Why have companies installed Internet and eBusiness technologies?

Evolving business relationships

To meet increased demands for rapid response customer service and improved communications with the sales channel To facilitate accelerated supplier communication To enhance internal departmental integration

Cost effective telecommunications The need for access to information

(internal and external) for decision making Expanded marketing opportunities .many others.

What technologies and business models are emerging to reinvigorate the Internet as a business platform?

Email The World Wide Web eMarketing Sites Business to Consumer Sales Center

What technologies and business models are emerging to reinvigorate the Internet as a business platform? More in 2002
1. 2. Expanded Broadband Telecommunication Services Stabilizing Standards for the Exchange of B2B data/application Web Services.

- XML, ebXML, WSDL, UDDI, and others prepared to deliver Web Services applications with the tools of Microsoft.NET and Suns J2EE. Everything from secure email, networking and internetworking infrastructure, full financial application service, enterprise resource planning, sales force automation, customer relationship management, project management, and much more. Email, voice mail, fax services, instant messaging, peer to peer workflow support, plus more..

1.

Growth in Outsourced Internet Business Services

1.

Increased Deployment of Unified Messaging Systems

Whats the common thread of the current Internet landscape?

Technology applications blending with

services. Enhanced cost effectiveness. Accelerated business processes. Improved business interaction and communications. more

More in 2002 Expanded Broadband Telecommunication Services

Broadband = a term for high-speed transmission, on a
single line, carrying a multitude of communications services including data, voice, and video.

transmission speeds of at least 200 kilobits/second as defined by the Advanced Telecommunications in Rural America report of the National Telecommunications and Information Administration and the Rural Utilities Service in the Spring of 2000. Available at http://www.ntia.doc.gov/reports.html.

Broadband Providers
Telephone Companies providers of xDigital Subscriber Line (xDSL) service

Capable of simultaneous Internet, television, and voice/fax capabilities over a single telephone line. Ongoing dedicated connection no dial-up and always connected. Monthly flat-rate fee for service Star-based technology results in data security that exceeds competing technologies.

Cable Companies providers of cable/modem/router services

Capable of simultaneous Internet, telephone, and television over a single cable line. Ongoing dedicated connection no dial-up and always connected. Monthly flat-rate fee for service Bus-based delivery technology

Broadband Providers
Wireless Companies capable for being rapidly deployed can operate unregulated

Ability to deliver into remote locations Capable of speeds up to 100 megabit speeds Comparatively inexpensive to deploy

Geostationary (GEO) Satellite Service Companies - began deployment of 1st generation in 2001. DirectTV and StarBand will add higher speed services in the years to come. Low and Medium Earth Orbit (L/MEO) Satellite Service Companies

Holds promise for connection transportability http://www.teledesic.com will offer speeds capable of up to 720 megabit downlink and 100 megabit uplink 2005 for full deployment 12 original and then 18 satellites to follow http://www.skybridgesatellite.com will off the same services with a deployment of 80 satellites.

A Telecommunications and Broadband Technology Simulation

The new landscape: Interconnected Businesses Governments - Homes

More in 2002 Growth in the Use of Outsourced Internet Services

As information technology requirements become more and more sophisticated, companies are examining alternatives to continued investment and reinvestment in infrastructure. Quality and cost effective programs of Application Service Providers (ASP) are now more appealing than ever, after the .com collapse. Services that are often considered for outsourcing:
1) 2) 3)

4) 5)

Email Website / eCommerce Hosting Customer Relationship Management Sales Force Automation Human Resource Management Enterprise Resource Planning Financial Systems Applications Complete Systems (back-end) Infrastructure much more

More in 2002 Growth in the Use of Outsourced Internet Services

The diversity and specialization in the available of services is

increasing all the time. http://www.asp-directory.com/ is a good reference on the services that you can examine.

Advantages of Using as ASP: By outsourcing IT services to an ASP, one can connect multiple office sites across remote geographies to a comprehensive, highperformance computing and application capability via the Internet or a private network. Best of all, one would generally pay for applications and information provided on demand with a fixed monthly subscription bill. By utilizing an ASP, a company can reduce the growing maintenance burden that is placed upon in-house IT staff. Internal IT staff can effectively become more free to focus on delivery and use of critical management information instead of focusing on technology maintenance and upgrades.

Internet Services - Business to Consumer eCommerce

Online eTail Stores http://www.amazon.com - http://www.cdw.com
http://www.crutchfield.com

Online auctions http://www.ebay.com Travel services http://www.expedia.com - http://www.priceline.com http://www.nwa.com

Financial Services http://www.schwab.com - http://www.ml.com Personal Services

Employment http://www.monster.com http://www.techies.com Legal http://www.techlawjournal.com - http://www.law.com Medical http://www.webmd.com Publishing - http://www.ecommercetimes.com many others.

Internet Services - Business to Business eCommerce

Sales Channel Interfacing Sales Support Centers
Dealership Extranet username and password required http://www.netledger.com Group Selling and Two-way RFP Channels http://www.onvia.com

Virtual Marketplaces - Procurement Aggregators - Supply Chain Application Services

Integrated, Comprehensive EDI / XML on the Internet http:// www.rosettanet.org for document definitions that will be used as standards Acquisition Group Buying http://www.buyerzone.com Requisition Intranet http://www.oraclesmallbusiness.com

Hosted Applications
Accounting Applications http://www.quickbooks.com Project Management Applications http://www.onproject.com

Technical Services
Design collaboration http://www.toolwire.com Meeting Facilitation http://www.placeware.com Application Service http://www.greatplains.com

Internet Services - Business to Government

Information Service Centers
Virtually all City, County, State or Federal Agencies the Internet will be a critical tool for data collection as well as data dissemination. Commerce Business Daily http://www.fedbizopps.gov/ Federal Electronic Commerce Program Office http://ec.fed.gov Small Business Administration http://www.sba.gov

Online Sales Centers licenses, tickets, assorted governmental products. eProcurement Centers -http://nais.nasa.gov/fedproc/home.html Application Services
Internal Revenue Service http://www.irs.gov

More in 2002 Increased Deployment of Unified Messaging Systems

Unified messaging is the integration of several communications

media, so that users will be able to retrieve and send voice, fax, and e-mail messages from a single interface, whether it be a wireline phone, wireless phone, or an Internet-enabled PC.
Companies are now understanding they must meet the needs of

both PC-centric and Telephone-centric users. UM seeks to bring a common interface to:

Email with calendaring and scheduling Telephone Fax Pager Instant Messaging others???

More in 2002 Unified and Instant Messaging Systems

While market delivery of many UM systems may be months and

some cases years away, telecommunications technologies are rapidly moving to consolidate Internet communications services.
Todays leading trend Instant Messaging Problem still no Internet/IETF standard. Products from AOL, Microsoft, Yahoo and others are often not interoperable. Security is still a concern IM uses Port 80 Enterprise class systems are under development Exchange 2000 and Lotus Notes already include components. Offers Powerful Real-time Customer Support and Employee Interaction capabilities Is being deployed on a variety of devices from a full PC to a cellular telephone.

More in 2002 Unified and Instant Messaging Systems

Tomorrows trend Voice over IP Protocols are becoming more stable. Both H.323 and SIP (Session Initiation Protocol) have gained a significant acceptance and SIP is included as a standard protocol in Windows XP as well as the newest versions of Linux. Will be integrated with existing PBX systems and local/wide are TCP/IP data networks. Has the potential to significantly reduce overall telecommunications costs while at the same time improving service. The novelty appeal of current Voice over IP products will disappear one telecommunications providers begin to package this service. Unified Messaging Systems will be built around todays corporate

messaging platforms from IBM Lotus Notes, Novell Groupwise, and Microsoft Exchange.

Additional Thoughts

an eBusiness growth stage is just around the corner

Additional Information
Bruce Brorson
University of Minnesota, Crookston Center for Business and Technology Information Technology Management Dowell Hall 217 2900 University Avenue Crookston, MN 56716
On the Web http://www.brucebrorson.net By phone at 1-218-281-8196 Fax at 1-218-281-8457 Bruce Brorson Email Address mailto:bbrorson@umn.edu