Transcript Information Systems Technology

Internet & Digital Economy
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What is Internet?
What is Electronic Commerce?
A Framework for EC
Benefits of EC
Categories of EC Applications
Internet Shopping Malls
Electronic Payment Systems
Agent Technology
What is Internet?
ARPANET created in 1969 by DOD
 Evolved into a worldwide network linking
educational,
research,
business
and
governmental organizations
 Based on TCP/IP communications protocol
 Open network architecture
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Services Available on Internet
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electronic mail
– allows for exchange of personal messages between individuals
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FTP (File Transfer Protocol)
– uploads/downloads files
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telnet
– permits log-ins to access resources in remote locations
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usenet (user’s network)
– designed to let user groups exchange information of their interest
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WWW (Worldwide Web)
– uses a graphically-oriented user interface to share multi-media info.
Company Uses of the Web for Electronic Commerce
1.Market place awareness
http:/www.fritolay.com/; http:/www.gatorade.com/
2.Customer Support
http://www.developer.ibm.com/ ; http://netwire.novell.com/servsup/
3.Sales
1) Indirect
http://www.jcpenney.com/; http://www.ultranet.com/~adamo/CA_Gold/products.htm
2) Direct
http://www.800flowers.com/shop/index.html;
http://www.midcoast.com/cybermall/indexcm.htm
3) Virtual Companies
http://www.condom.com/; http://www.nwpros.com/Mall/mall.html
4.Advertising
http://www.publicita.com/homepage.html; http://www.ultimate.org/;
http://www.wp.com/CYBERPAGE/
5.Electronic Information Services
1) Subscription-Based
http://www.espnnet.com/; http://www.mids.com/
2) Non Subscription-Based
http://www.disneychannel.com/
3) Local/Regional Broadcast Stations (TV/Radio)
http://www.kzps.com/kzps; http://www.kxas.com/
Electronic Commerce
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EC is defined as the buying and selling of
products, services, and information via
computer networks, including the Internet.
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Evolution of EC
– EFT
– EDI or e-mail (VAN-based)
– Internet
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Categories of EC transactions:
– business-to-business
– business-to-consumer
A Framework for EC
EC Applications
People
Infra:
Public
Policy
Public
Policy
Organizations
(1) Common Business Services Infra. (security smart cards, electronic payment)
(2) Messaging and Info. Distribution Infra. (EDI, e-mail, Hypertext)
(3) Multimedia Content and Network Publishing Infra. (HTML, JAVA, WWW, VRML)
(4) Network Infra. (Telecom, CATV, wireless, Internet)
(5) Interfacing Infra. (to DB, customers, applications)
Benefits of EC
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Benefits to Organizations
– EC decreases the cost of creating, processing, distributing, storing,
and retrieving paper-based info, as well as telelcom cost
– EC allows reduced inventories and overhead by facilitating SCM
– EC allows small businesses to compete against larger ones
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Benefits to Consumers
– EC provides consumers with more choices (more vendors/products)
– EC keeps the costs of products and services down
– EC provides the opportunity to shop 365 days a year, 24 hours a day
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Benefits to Society/Economy
– EC decreases the need to travel for business transactions
– EC lowers the prices of merchandise, allowing poor people to buy
more and improve their quality of living
B-to-B EC Applications
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EDI(Electronic Data Interchange):
– defined as the electronic movement of specially formatted standard
business documents, such as orders, bills, and confirmations sent between
businesses
– document formatting standards: X12, EDIFACT, etc.
– widely used by retailers, manufacturers, insurance companies, and other
paperwork-intensive organizations
– can significantly lower paperwork-related cost and speed up transactions
There has been a shift from VAN-based EDI
to Internet-based EDI
 e.g., KTNET(Korea Trade Network)
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B-to-C EC Applications
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Advertising and Online Publishing
– websites of most large corporations
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Cyberbanking, Personal Finance, and Stock Trading
– online decision support tools
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Travel and Real Estate
– digital photos
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Retailers & Internet Shopping Malls
– electronic catalogs
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Auctions
– can invite and collect many bids over the Internet
How Electronic Auction Works
Cyber Auction Site
(ebay .com)
Buyer
AA
구매자
Selection of the
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successful bidder
„
Buyer
BB
구매자
Buyer
AC
구매자
Notification
of the
successful
bidder
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Item
Registration
Seller
Categories of Internet Shopping Malls
Selling Method
Indirect
Multiple
Product
Categories
Single
Direct
Direct Sale, Multiple Products
Indirect Sale, Multiple Products
Direct Sale, Single Product
Indirect Sale, Single Product
Electronic Payment Systems
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Smart Cards
– The value is stored on a card; can be either online or offline
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Credit Cards
– S.E.T. standard developed jointly by Visa & MasterCard
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Electronic Cash
– Money is drawn at the time of a transaction
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Electronic Checks
– Money is drawn some time after the time of a transaction
Intelligent Agents
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A technology designed to alleviate the information
overflow problem and facilitate EC
special software that travel from site to site, performing
tasks useful for the user
Functions of intelligent agents:
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information access and navigation
decision support and empowerment
repetitive office activity
routine personal activity
search and retrieval
domain experts
mySimon.com: an Agent to Aid in Shopping