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.
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Evolution of the Internet
• The Internet has been defined as
– A network of networks.
– Loose collection of related computer networks.
• World Wide Web
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Is a subset of the Internet.
Accessed through Web browsers.
Email
Usenet
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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
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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
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Evolution of the Internet
• ARPANet – Advanced Research Projects
Agency
– US Defense Department.
– Scientists, military personnel, and researchers.
• MILNet – Military personnel
• Bitnet – National Science Foundation
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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.
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Internet Building Blocks
• Internet addressing
– URL – uniform resource locator
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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).
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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
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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.
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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
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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.
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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.
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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.
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Search Engines
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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.
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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.
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Business Opportunities
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Business-to-consumer
Consumer-based markets
Business-to-business
Business-based markets
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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.
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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.
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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
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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.
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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.
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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.
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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
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