1. Management Information Systems, Second Edition Effy Oz Chapter 7 The Internet, Intranets, and Extranets

2. 2 Learning Objectives When you finish this chapter, you will  Know what the Internet is.  Know the features for information exchange that can be conducted over the World Wide Web.  Understand how the Web facilitates electronic commerce.  Be able to generate basic ideas for new business ventures utilizing the Web.  Appreciate the major risks and limitations of using the Web for business activities.

3. 3 What is the Internet? The Development of the Internet  ARPANET was an open system designed for the free flow of information, but available only to members of academic institutions and some of the defense industry.  U.S. government decided to split the network into a civilian one and a military one.  Civilian network became the Internet  Internet is now a network of networks.

4. 4 What is the Internet? Figure 7.1 The Internet connects millions of servers.

5. 5 What is the Internet? Growth of the Internet  Number of servers  From a few hundred in 1993, to more than 43,000,000 by mid-1999  Number of users  More than 200 million; increased rapidly during 1999 Commercial Online Services  Companies like America Online provide “online” service to paying subscribers on their private networks.

6. 6 What is the Internet? Figure 7.2 World growth of the Internet

7. 7 What is the Internet? Figure 7.3 The number of Internet domain servers continues to grow

8. 8 Internet Domains A domain name is assigned to each IP number. Internet servers are grouped into different domains. Domain names are registered by one of a group of companies authorized to assign unique names.

9. 9 Internet Domains Figure 7.4 Examples of Internet address suffixes

10. 10 Internet Domains What’s on the Internet?  E-mail and file transfer  News groups  Internet Relay Chat (IRC)  Telephoning on the Web

11. 11 The World Wide Web Hypertext transfer protocol (HTTP)  Allows shared communication of text, full- color graphics, tables, forms, video, and animation Hypertext Mark-Up Language (HTML)  Code for tagging Web files for display Browsers  Software to access the Web

12. 12 The World Wide Web Creating Web Files  HTML  System of standardized “tags” that format elements text, graphics, and animation  Web page editors  Translate well-known or intuitive commands into code  Java, ActiveX, and XML  Web scripting languages  Common Gateway Interfaces (CGI) and Forms  Allow a computer that is accessing a particular Web site to have some similar functions

13. 13 The World Wide Web Figure 7.5 How a CGI works

14. 14 The World Wide Web  Frames  Sections of a Web page that let a browser explore a site in different ways on the same page  VRML (Virtual Reality Modeling Language)  Standard for describing interactive three-dimensional scenes delivered across the Internet  Cookies  Special file a Web site saves on the surfer’s hard disk so the site can remember something about the surfer later  Creating Your Own Web Pages  Search the Web for HTML tutorials  View and study the source document of a Web page

15. 15 Intranets and Extranets Intranet  A within-organization computer network that uses Internet technologies to communicate Extranet  Uses Internet technologies to facilitate communication and trade between an organization and its business partners, such as suppliers

16. 16 Intranets and Extranets Figure 7.6 An intranet, an extranet, and the Internet from an individual user’s perspective

17. 17 Intranets and Extranets Figure 7.7 Internet, intranet, and extranet potential for productivity enhancement

18. 18 Intranets Figure 7.8 Savings resulting from the Internet, intranet, and extranet e-commerce

19. 19 Establishing a Web Site Site Name Points of Presence Line Capacity Site Maintenance

20. 20 Establishing a Web Site Figure 7.9 Transfer times of a 10-MB file by different media

21. 21 Business on the Internet Business-to-Business Trading Electronic Data Interchange Exchanges and Auctions  E-catalogs

22. 22 Business on the Internet Business-to-Consumer Trading  Advertising  Portals  Free Internet applications  E-Shopping  E-Payment  Auctions and reverse auctions  Selling content  Selling software  Data push  Stock trading for all

23. 23 Business on the Internet Figure 7.10 Web-shopping benefits

24. 24 Figure 7.11 Estimated unique visitors to individual Web sites during 8/09/99-8/15/99 Business on the Internet Web Demographics

25. 25 Business Considerations Web Costs  The least costly sites are those constructed simply to showcase the company’s products or services.  The most expensive sites are those designed to enable electronic commerce.

26. 26 Business Considerations Figure 7.12 The average cost to a company offering a Web site for electronic commerce

27. 27 Business Considerations Figure 7.13 Do’s and Don’ts in Web site construction for commercial purposes

28. 28 Business Considerations Risks to Organizations  Computer viruses  Interception of passwords and codes by an unauthorized hacker  Interception of charge account numbers  Illegal or socially objectionable use of a site  Potential misrepresentation Risks to Consumers  Eavesdropping and interception  Misrepresentation

29. 29 The Nations: Who is on the Net? While the U.S. is leading in developing new technologies for the Net, other nations are not far behind.  Finland has the highest ratio of Internet servers to users.  Israeli companies are heavily involved in developing high-quality Internet phone software.  Singapore’s government has invested over $2 billion in state-of-the-art technology infrastructure.

30. 30 Figure 7.14 The number of citizens per Internet server around the world Finland25Japan470 U.S.50Taiwan850 Australia60South Africa930 Canada70South Korea1,550 Netherlands90Brazil8,000 Singapore125Thailand15,000 Britain130Indonesia87,000 Germany180China561,000 Israel185India1,200,000 Hong Kong310 Source: Network Wizards;Killen & Associates, 1997. The Nations: Who is on the Net?

31. 31 Ethical and Societal Issues Road Bumps on the Electronic Superhighway Free Speech  From the advent of the Web, ‘inappropriate’ material has been posted and disseminated throughout the world.  There have been calls to sensor what is transmitted, especially pornography, violence, and racial slurs. Spamming  Flooding a party’s e-mail box with messages as a means of protest is disruptive.