What is the Internet?

The Internet, commonly referred to as the 'NET', derives its' name from INTERnational NETwork and encompasses a range of services including, the World Wide Web, e-mail and newsgroups.

It was adapted for commercial use from a project by the US governments' Advanced Project Research Agency (ARPA), whose mission was to create a means of communication for the military that would still function, even if parts of it were destroyed in war or natural disaster.

Today however, the Internet has become the most independent, accessible and truly global means of communication available. It never sleeps, it crosses borders, and as a result is now part of the everyday business environment.

Current estimates show 350 million users worldwide will be on-line by the end of 2001. In the UK alone customers and suppliers are coming on-line at the rate of 11,000 everyday and businesses are embracing the Internet at a similar rate.

As the Internet audience grows unsurpassed, businesses are quickly realising that access to this medium and its vast potential of growth cannot be ignored. The focus of the Internet is becoming an invaluable part of any company and in some cases entire businesses depend on it.

The Internet allows businesses to compete more effectively both locally, nationally and internationally, whatever their size and nature. Not only does it provide access to a powerful promotional channel and target audience, but it can also improve customer service, expand customer databases, reduce overheads and gain access to new markets.

The resultant use of this new technology is creating a competitive advantage for those who grasp it. Increasingly businesses are being left with little or no choice but to develop and increase their Internet presence, otherwise competitors can emerge from nowhere and quickly become a dominant force in virtually any market.


What is e-commerce?

E-commerce is the buying and selling of goods over the Internet between a vendor and individual members of the public. This may involve a third-party for credit-card authorisation. In practice this term and the term e-business, are often used interchangeably.

One of the first exponents of e-commerce is Amazon, the US bookseller. Amazon were one of the first to capture huge market share in the Business-to-Consumer (B2C) market, using a website and warehouse, avoiding the associated overheads of running high street shops.


What is e-business?

E-business encompasses and enables on-line buying and selling (e-commerce), but more importantly, e-business is the involvement of web technologies to aid and improve business communications and transactions between companies along the supply chain. This improves performance with customers, whilst at the same time can reduce costs.


SET (Secure Electronic Transactions)

Mastercard and Visa have agreed on a common security standard: SET (Secure Electronic Transactions). This standard, which will continue to evolve, makes use of technology from Netscape (SSL, or Secure Sockets Layer), Microsoft's STT, (or Secure Transaction Technology), and Terisa System's S-HTTP (Secure Hypertext Transfer Protocol).

Assuming that a customer has a SET-enabled browser such as Netscape or Microsoft's Internet Explorer and that the transaction provider (eg: Amazon), has a SET-enabled server (usually identified by a padlock in the right hand bottom corner of your screen), then a secure transaction may be attempted.

Glossary