2. E-Business in Rural Communities
What is the Internet?
– The Internet is the sum total of devices
interconnected using the Internet Protocol
We use the Internet with applications such as:
• Usenet - A distributed discussion system (newsgroups)
• E-mail - Electronic communication, fast and broad
• WWW - World Wide Web
• FTP - Transfer files between computers
Source: Hofacker, 2001
3. E-Business in Rural Communities
What is the Internet?
– Aren’t they all the Web?
• Technically, no. The Web represents that
portion of the Internet that is used through the
use of hyperlinks. However, an effective
Internet business strategy will use more than
just the Web.
Source: Hofacker, 2001
4. E-Business in Rural Communities
What is the Internet?
– What is E-Commerce?
• The use of diverse applications of the Internet
such as Email, Usenet, Chat, FTP, World Wide
Web, to conduct business operations.
Source: Hofacker, 2001
5. E-Business in Rural Communities
How has it evolved?
The purpose of the Internet is to allow
communication in the event of a catatrosphic
disaster.
6. E-Business in Rural Communities
How has it evolved?
– 1969 first message sent over the net
– 1976 Queen Elizabeth II sends an e-mail
– 1984 domain name system introduced
– 1986 backbone speed is 56K
– 1989 number of hosts exceeds 100,000
– 1991 WWW developed
– 1995 dial up service, $50 domain name
– 1996 browser war
– 1999 the WWW is DOT.COM
– 2000 DOT.COMs are accountable
7. E-Business in Rural Communities
How has it evolved?
– How many are online?
What do people do online?
Where is E-Commerce going?
14. E-Business in Rural Communities
• In 2000, the Internet economy generated
$830 billion in revenue; created 3 million jobs
• Of the $830 billion, Internet commerce accounted
for about $254 billion of the total and over
1 million of the 3 million jobs
Reference: University of Texas Center for Research in Electronic Commerce; "The Internet Economy Indicators" - January 2001; www.internetindicators.com
15. E-Business in Rural Communities
PC industry -
zero to $100 billion in ten years
“the greatest legal accumulation of wealth in history”
Internet economy -
zero to $800 billion in five years
“new business model called Dynamic Trade is
fundamentally altering the creation, delivery and
pricing of products and services”
Reference: University of Texas Center for Research in Electronic Commerce; "The Internet Economy Indicators" - January 2001; www.internetindicators.com
16. E-Business in Rural Communities
U.S. e-commerce retail sales ...
$26 billion in 2000
Approximately .8% of total retail sales
Reference: U.S. Department of Commerce; January 2001
17. E-Business in Rural Communities
What people are buying on the Web . . .
• Airline tickets
• Hotel reservations
• Computer hardware
• Apparel
• Consumer electronics
• Car rental
• Health/Beauty
• Books
• Music
• Computer software
• Jewelry
• Toys/Video games
• Food/Beverage
• Office supplies
• Flowers
• Linens/Home decorations
• Sporting goods
• Videos
• Appliances
• Furniture
• Tools/Hardware
• Footwear
• Small appliances
Reference: Forrester
18. E-Business in Rural Communities
Reasons Why People Shop the Web . . .
• Easy to place an order - 83%
• Large selection of products - 63%
• Cheaper prices - 63%
• Faster service and delivery - 52%
• Detailed and clear product information - 40%
• No sales pressure - 39%
• Easy payment procedure - 36%
www.useit.com/alertbox/990207.html
19. E-Business in Rural Communities
Name recognition by consumers . . .
Amazon - 60%
Priceline - 55%
eBay - 46%
E-Trade - 43%
20. E-Business in Rural Communities
Mega-selling Web sites . . .
Cisco
Amazon
QVC
36. E-Business in Rural Communities
Know why you are on the Web???Know why you are on the Web???
37. .com
Static
Interactive
Transactional
Integrated
Access
Advertising
Marketing
Information
No
Capability
No company web site
Can access other sites
Registration
Forms
E-mail
Online orders, payments
Order tracking, queries
Funds transfer
End-to-end
Fulfillment
Workflow
E-Commerce Roadmap
Legend
- Functions at Level
♦ - Requirements to achieve next level
♦ Internet access through ISP
♦ Email accounts
♦ Web site
♦ Content development & updates
♦ Web site connectivity to database
application(s) and email accounts
♦ Secure transaction processing
♦ Online payment authorization
♦ Authentication and validation
♦ Seamless connectivity
to back-end system(s)
♦ Minimize/eliminate
manual input on
transactions.
♦ B2B automated
processes
Level 1
Level 2
Level 3
Level 4
Level 5
Adapted from:www.mepcenters.nist.gov/public/ecommerce-summit.nsf
While developing an E-
Commerce presence, it
is important to know
where you are now as
well as the appropriate
destination for your
business.
39. E-Business in Rural Communities
Who is going to design, build, and maintain the site???Who is going to design, build, and maintain the site???
In-house vs. Outsourcing
40. E-Business in Rural Communities
What do you need for an e-commerce site . . .
• Domain name
• Web site/store
• Web server/host
• Site marketing
43. E-Business in Rural Communities
www.register.com
www.networksolutions.com
Domain name registration services:
44. E-Business in Rural Communities
What do you need for an e-commerce site . . .
• Domain name
• Web site/store
• Web server/host
• Site marketing
45. E-Business in Rural Communities
What do you need for an e-commerce site???
• Web store
• Online product catalog
• Shopping model/Ordering system
• Merchant account/Payment processing
• Customer communication system
• Tracking system
46. E-Business in Rural Communities
What do you need for an e-commerce site . . .
• Domain name
• Web site/store
• Web server/host
• Site marketing
51. E-Business in Rural Communities
What are the costs . . .
• Domain name
•set-up fee
•annual fee
• Web site
•in-house
•outsource
• Web server/host
•set-up fee
•monthly fee
52. E-Business in Rural Communities
What are the costs . . .
• Merchant account/processing
•set-up fee
•transaction fee
•monthly/annual fee
•percentage of sales
• Other
•marketing fee
53. E-Business in Rural Communities
Service Brochure
Site
Storefronts
Setup fee $25-50 $50-100
Web site design $200-1000 $1500-6500
Web site hosting &
maintenance
$15-25/mo $100-500/mo
Secure server N/A $50/mo
Secure server certif. N/A $125
Domain name $3-4/mo $3-4/mo
Total setup cost $225-1050 $1675-6725
Total monthly fees $18-29 $153-5541
54. E-Business in Rural Communities
ISP SERVICE Cost1
Setup $50
Simultaneous Web access for up to 10 users $99/month
Domain registration $70
E-mail for up to 10 users Included
Web hosting, 30MB server space $50 start-up fee,
$30/month
24/7 telephone support Included
Starter e-commerce storefront including credit
card authorization
$50 start-up fee,
$80/month
Miscellaneous charges (e.g., Web design
consultancy fees)
$300 and up
First-year total $3028 and up
1
Based on the average cost of several national ISPs' services.
55. E-Business in Rural Communities
What do you need for an e-commerce site . . .
• Domain name
• Web site/store
• Web server/host
• Site marketing
56. E-Business in Rural Communities
Advertising and Promoting
Your Web Site
Build It And They Will Come???
58. E-Business in Rural Communities
The key is consumer confidence . . .
• Fun and easy to navigate sites
• Pages that appear professional
• Clear and accurate product information
and representation
• Real time answers through self help
features, e-mail, and a toll-free telephone
number
59. E-Business in Rural Communities
The key is consumer confidence . . .
• Good prices and clear representation
of all charges
• Payment options
• Secure transactions
• Easy to use return or exchange policy
• Quick processing time and delivery
60. E-Business in Rural Communities
The key is consumer confidence . . .
• Shopper privacy
• Eliminate the unknowns
62. E-Business in Rural Communities
Elements to consider . . .
• Bandwidth
• Browser compatibility
• Color palette
• Continuity
• Frames
• Homepage
63. E-Business in Rural Communities
Elements to consider . . .
• User Interface
• Screen compatibility
• Readability
• Text only default
• Accessibility
64. E-Business in Rural Communities
Designing Web Usability
The Practice of Simplicity
by
Jakob Nielsen
www.useit.com
65. E-Business in Rural Communities
The Bottom Line . . .
Getting customers to come to your site,
Getting customers to make a purchase
once they get to your site, and
Getting customers to return to your site and
purchase again, again, and again!
66. Will technology be the great equalizer
or
will it deepen the digital divide?
67. E-Business in Rural Communities
For the society, the impact will be good or bad, depending mainly
on the question: Will to be 'online' be a privilege or a right? If only
a favored segment of the population gets a chance to enjoy the
advantages … the network may exaggerate the discontinuity in the
spectrum of intellectual opportunity.
. . . . . Written in 1968 by Robert Taylor, director of the
Defense Department agency that created original Internet.
68. E-Business in Rural Communities
Americans with more education are more likely to be connected.
Americans with more money are more likely to be connected.
Whites are more likely to be connected than Black non-Hispanics.
Urban Americans are more likely to be connected than rural Americans.
Connectivity . . .
69. E-Business in Rural Communities
E-commerce is the new business model.
Participation is largely dependent on access to
and adoption of IT.
Access to IT is influenced by education,
money, race, and residence.
The Issues . . .
70. E-Business in Rural Communities
Rural businesses need to position themselves
now for a IT driven future.
Businesses cannot afford to let barriers hold
them back.
Lack of unbiased educational information
and technical assistance.
The Challenges . . .
71. E-Business in Rural Communities
All people and all businesses must have the opportunity to be
connected to the Internet.
Businesses need access to educational and technical expertise.
States must educate, recruit and retain people with technical
expertise in the region.
State and local policymakers must take a comprehensive and
strategic look at e-commerce from an economic development perspective.
What is needed . . .
72. E-Business in Rural Communities
The Critical Role of Education . . .
Are colleges and universities in the
South prepared to address e-commerce
issues effectively?
73. E-Business in Rural Communities
Extension’s Outreach Role . . .
Is Extension in the South prepared to
address e-commerce issues effectively?
74. E-Business in Rural Communities
Providing campus wide leadership in e-commerce
MSU E-Commerce Research, Development, and Outreach Task Force
www.msu-ecommerce.org
Grant proposals
Providing e-commerce educational programs for small businesses
Electronic Retailing: Selling on the Internet conference
www.ext.msstate.edu/registration/ecommerce.html
E-Biz workshops
Web site analysis
In Mississippi . . .
75. E-Business in Rural Communities
Providing e-commerce educational programs for small businesses
E-Commerce seminars
County extension offices
SBDC’s
Special interest groups
Consultations
Electronic publications
www.msucares.com/business_assistance/homebusiness/ecommerce.html
Providing in-service education for agents
Working on multi-state collaborations
In Mississippi . . .
76. E-Business in Rural Communities
“Unless efforts are undertaken to close the
divide, the South will continue to lag
behind, and perhaps fall even further
behind the rest of the country.”
77. Beth Duncan, Ph.D.
Small Business Specialist
Mississippi State University Extension Service
bethd@ext.msstate.edu
