Transcript Chapter 5
Chapter 5 The Internet and Electronic Commerce Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2002. All rights reserved . Chapter Objectives • To understand the basic building blocks of Internet technologies. • To determine how widespread the implementation and expansion of the Internet is. • To appreciate the tremendous potential for business applications of Internet technologies. • To understand some of the major issues raised by use of the Internet. 2 Evolution of the Internet • The Internet has been defined as – A network of networks. – Loose collection of related computer networks. • World Wide Web – – – – Is a subset of the Internet. Accessed through Web browsers. Email Usenet 3 General Framework Electronic Commerce Level 5 Electronic commerce applications Level 4 Common business services infrastructure Level 3 Messaging and information distribution Level 2 Multimedia content Level 1 Public Policy: Legal and Privacy 4 Growth of the Internet Date Number of Domains August-81 231 August-83 562 October-85 1,961 December-87 28,174 October-89 159,000 October-91 617,000 October-93 2,056,000 July-95 6,642,000 July-97 19,540,000 July-99 56,218,000 January-01 109,574,429 5 Evolution of the Internet • ARPANet – Advanced Research Projects Agency – US Defense Department. – Scientists, military personnel, and researchers. • MILNet – Military personnel • Bitnet – National Science Foundation 6 Service Providers • Internet Service Provider – Pay a flat fee to connect to the Internet. – Charge subscribers a subscription fee. – America Online, CompuServe, MSN. • On-line Service Provider – Offer additional service in addition to Internet access. • Wireless Service Provider – Companies that offer wireless access to the Internet. 7 Internet Building Blocks • Internet addressing – URL – uniform resource locator • • • • • • Protocol://domain-name:port/directory/filename http://www.rei.com/rei/help/orderhelp.html http://www.rei.com/rei/gearshop/index.jsp ftp://ftp.company.com http – hypertext transfer protocol ftp – file transfer protocol – IP Address • 152.17.101.11 – Domain Name System, translates the URL into an IP address. – Domain Name suffixes (.edu, com, .gov, .biz, .name). 8 Five Waves of Internet Technology & Use 1. Department of Defense funding Research Applications 2. Academic Use 3. Web and Web browsers 4. Telecommunications infrastructure 5. Mobile Internet platforms 9 Internet Applications • Email, message is composed and transmitted electronically – Listservs, distribute messages to individuals with common interests. • Newsgroups, forum for electronic discussion. • Telnet, allows access to other computers connected to the Internet. • FTP, file transfer protocol allows files to be transferred from a host site to your computer. 10 Internet Applications • World Wide Web (WWW) is a subset of the Internet used to store and retrieve hypertext and hypermedia files. – HTML, hypertext markup language is a set of tags that markup documents to be viewed in a web browser. – A web browser is a software program that is used to view web pages (Netscape Navigator, Microsoft Internet Explorer). – A web server is hardware and software used to store web pages (IIS, Apache) – Figure 5.6 11 Due to the limitations of HTML: • Java was introduced in 1995. – Sun Microsystems – Object Oriented Programming Language – Applets add animation • XML, eXtensible Markup Language was created in 1998 by the W3C. – – – – XML is a set of rules used to create a markup language. Rules ensure that the parser can process new language. Adds meaning to documents. Uses extensible style sheets. 12 Dynamic Web Pages • A database management system can help generate content for web pages. – Checking the price of a book on Amazon.com. – Personalized web pages. • Tools to create dynamic web pages. – VBScript with Active Server Pages. – Internet Information Server. 13 Search Engines • A search engine is designed to locate other pages (Yahoo, Google). 1. A spider, crawler, or bot are used to search the web. 2. Index, stores everything found in step 1. 3. Search engine utility returns a list of web pages that match the original request. 14 Intelligent Agents & Web Portals • An Intelligent agent is a software program that performs some action on behalf of a person or other entity. • A web portal is a customizable window on the web for individual users. 15 Business Opportunities • • • • Business-to-consumer Consumer-based markets Business-to-business Business-based markets 16 Business-to-consumer • Most visible form of E-commerce, associated first with the term E-commerce. • Internet based transactions involving the exchange of goods or services for money. • Also includes non-commercial applications. • Clicks-and-mortar – Wal-mart & ToysRUs. • Cookies are files used to store information on the customers computer --Amazon.com. 17 Consumer-based markets • A consumer-based market is an online market for consumers, analogous to a farmers market. • A group of individual get together online an offer their product or service. • Other individuals bid on those products or services. • Examples include eBay and Amazon. 18 Business-to-business • Business-to-business commerce is an online relationship between businesses. – Larger than the Business-to-consumer markets. – Relationships can be categorized as: • Transactional • Contractual • Partnership – EDI 19 Business-based markets • A business-based market is an online market for businesses. • Suppliers supply products or services to bid on. • Participants bid on those products or services. • Markets may use fixed or negotiable pricing. • Requirements, PC and Internet connection. 20 The Mobile Internet • Accessing the Internet through mobile devices such as PDAs, Cell Phones, and Laptop computers. • Challenges to the Mobile Internet – Physical limitations (bandwidth). – Protocol compatibility problems with HTML. – Technical capabilities of mobile devices. 21 Internet Issues • Security – Hackers may attempt to gain access to a vulnerable computer. – Hackers don’t have to gain access to cause damage, denial-of-service attacks. – Sniffer programs allow hackers to monitor activity on a network. – Pagejacking refers to a scheme to disrupt a website. 22 Internet Issues • Privacy – Profiling is used to understand customer preferences and interests. • Consumer Protection – Off-shore casinos – Online scams • Censorship – Who determines obscene or undesirable? • Intellectual property rights 23