1. Chapter 5 The Internet and Electronic Commerce The McGraw-Hill Companies, Inc. 2002. All rights reserved. Irwin/McGraw-Hill

2. 2 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.

3. 3 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

4. 4 General Framework Electronic Commerce Level 5Electronic commerce applications Level 4Common business services infrastructure Level 3Messaging and information distribution Level 2Multimedia content Level 1Public Policy: Legal and Privacy

5. 5 DateNumber of Domains August-81231 August-83562 October-851,961 December-8728,174 October-89159,000 October-91617,000 October-932,056,000 July-956,642,000 July-9719,540,000 July-9956,218,000 January-01109,574,429 Growth of the Internet

6. 6 Evolution of the Internet ARPANet – Advanced Research Projects Agency –US Defense Department. –Scientists, military personnel, and researchers. MILNet – Military personnel Bitnet – National Science Foundation

7. 7 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.

8. 8 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).

9. 9 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

10. 10 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.

11. 11 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

12. 12 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.

13. 13 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.

14. 14 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.

15. 15 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.

16. 16 Business Opportunities Business-to-consumer Consumer-based markets Business-to-business Business-based markets

17. 17 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.

18. 18 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.

19. 19 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

20. 20 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.

21. 21 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.

22. 22 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.

23. 23 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