1)Internet technology is the key-enabling technology for the digital integration of the modern company.

Proprietary systems are inexpensive and based on technology standards that most companies can follow.

The Internet’s universal computing platform is the primary infrastructure for the emerging digital firm.

One advantage of using Internet technology is that it provides the infrastructure to allow information to flow seamlessly from one part of the organization to another.

The unbundling of information from traditional channels has enhanced old business models.

The Internet shrinks information asymmetry.

The time and money spent locating a suitable product and determining the best price for that product defines location costs.

Information asymmetry exists when one party in a transaction has more information for the transaction than the other party.

Dynamic pricing is online bidding.

A banner ad opens automatically and does not disappear until the user clicks on it.

A syndicator is a business that aggregates content or applications from multiple sources, packaging them for distribution, and reselling them to third-party Web sites.

Disintermediation provides major benefits to the distributor.

Web sites can gather bountiful detailed information about customer behavior and demographics.

It is unusual for companies to use Web pages to analyze customer information.

Amazon.com uses Web personalization as a major marketing tool.

Web sites cannot currently provide customers with Web page/call center interaction.

Private exchanges are currently the fastest growing type of B2B commerce.

Direct goods are not directly involved in the production process, and normally serve vertical markets.

Automobile manufacturing is an example of a vertical market.

Many third-party Net marketplaces provide vertical markets for a single industry.

Accumulated balance digital payment systems allow consumers to make instant online payments to merchants and other individuals based on conventional credit card payments.

Digital cash can be used for micropayments or larger purchases.

Sophisticated electronic commerce software has capabilities for processing credit card purchases on the Web.

Digital checks are less expensive than credit cards.

Digital checks are more expensive than credit cards but faster than paper-based checking.

Event-driven publishing allows organizations to respond more rapidly to changing conditions than paper-based publishing.

Intranets are useful in all the major functional areas of business.

Traditional TPS are the best way to bring detailed information together from many different sources for decision making and performance measurement.

One of the most popular applications for corporate intranets is the coordination of the activities of the sales force.

Major uses of the intranet for the sales and marketing departments are online training and order tracking.

TransCanada Pipeline employees use the company intranet to process timesheets and expense reports.

It is more difficult to develop intranets integrating manufacturing data under a uniform interface than to develop them in other functional areas.

Intranets and extranets can be used to electronically coordinate cross-functional processes inside and outside the organization.

Internet technology has changed value propositions and business models.

Because of its speed and efficiency, doing business on the Internet is always more cost-effective than traditional business methods.

Channel conflict can create negative repercussions, especially when commission sales to area sales representatives are involved.

In order for electronic commerce to flourish there must be an atmosphere of trust established among buyers, sellers, and other partners involved in online transactions.

The Web provides an unprecedented ability to learn about and target customers.

The unbundling of information from traditional channels has enhanced old business models.

Peer-to-peer payment systems are the principal payment systems for electronic commerce.