Transcript INTERNET & WORLD WIDE WEB

Day 4 Agenda
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Assignment # 1 Due
Review of last week
MIT Forum
Lecture/Discuss WWW/Internet
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
MIT Enterprise Forum
• “Entrepreneurship in a Global Economy: An Examination
of Today’s Economic Environment”
– Professor Lester Thurow
• Dean Emeritus of the Sloan School of Business at MIT
• Professor of Economics and Management, MIT
– September 18, 2002 7-9 PM
• Nadeau Hall Teleconference Room
• Free to Public
• Possible 10 Extra Credit Points on next Exam
– 5 Points for attending
– 5 Points for answering a question correctly on the exam
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
INTERNET
& WORLD WIDE WEB
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Internet & WWW
OVERVIEW
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Introduction
Usage of Internet
Limitations
Ease of Searching Online
Bulletin Board Systems vs. Pay Services
Web Fundamentals
Internet Language
Implications for Management
WWW
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© 2002 Prentice Hall
Internet & WWW: Introduction
Introduction
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Significance of Internet
History of Internet Development
World Wide Web (WWW)
Internet Service Providers (ISPs)
Reliability & Stability of the Web
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© 2002 Prentice Hall
Comparison Of Technology
Integration
• Telephone
– Developed 1876 (126 years ago)
• Television
– Developed 1927 (75 years ago)
• Internet
– Developed 1960 (42 years ago)
• WWW
– Developed 1991 (11 years ago)
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© 2002 Prentice Hall
Introduction: Significance of Internet
Significance of Internet
• How much has Internet changed your
company’s infrastructure?
– Among 150 IT managers:
Very Little
17%
Other
6%
Significantly
34%
Som ew hat
43%
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Source: Informationweek, Apr. 3, 2000, p. 165.
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© 2002 Prentice Hall
Introduction: History of Internet Development
History of Internet Development
• 30-year History since 1969
– Pentagon & Cold War
• Original Use:
– Military installations
– Universities
– Business firms with defense department contracts
• Initial Goal:
– Design a network that maintains the safe transition of
data between military computers
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Introduction: History of Internet Development
Events
Date
Event
1969
ARPAnet
1984
MILNET & ARPANET (Internet)
1980s
National Science Foundation (NSF) controlled
Internet Access
NSF eased restrictions on Internet Access
1991
1995
U.S. government relaxed entry into Internet for the
public
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Introduction: History of Internet Development
Exponential Growth in
Network Bandwidth
Year
1969
1985
1987
Bandwidth
9.6 Kbps
54 Kbps
1.544 Mbps (T1 speed)
1989
1995
1997
45 Mbps (T3 speed)
155 Mbps
622 Mbps
1998
2000
1,024 Mbps
2,048 Mbps
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Growth rate:
> 210, 000 times
Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Introduction: World Wide Web
World Wide Web
• An organization of files designed around a
group of services on Internet
• Programmed to handle requests from browser
software resided on users’ PCs
– Browser: a program that allows pictures & texts
of a document to be viewed. E.g. Netscape & IE
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Introduction: World Wide Web
Events
Date
Event
03/89
WWW project was originated by Timothy Berners-Lee
11/90
A revised version of project by NeXT computer
03/91
Release of WWW for testing
09/93
10/93
Release of 1st version of Marc Andreessen’s Mosaic by
NCSA
> 500 known HTTP servers in operation
10/94
> 10,000 know HTTP servers in operation
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Introduction: World Wide Web
Internet Network Architecture
Backbone
e.g. High-Speed Backbone Network
operated by MCI
Network Access Points (NAPs)
e.g. New York (Sprint)
Regional Networks
e.g. AOL, AT&T
Regional ISPs
i.e. Local Providers
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User Level
e.g. University / Corporate Networks
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Introduction: Internet Service Providers
Internet Service Providers
• ISPs offer:
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Linking consumers & businesses to Internet
Payment system for online purchases
Monitoring & maintaining a customer’s website
Network management & system integration
Backbone access services for other ISPs
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© 2002 Prentice Hall
Introduction: Reliability & Stability of Web
Reliability & Stability of Web
• Internet Society
– Works with ISPs by providing information to
prospective users & attracts product developers
• Internet Architecture Board
– Focuses on TCP/IP & other protocols
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Internet & WWW: Usage of Internet
Usage of Internet
• Marketing & selling products / services
– E-commerce
• > $1 million sales
• B2B, Government Agencies, Universities, B2C
– Failures
• 2/3 out of 100,000 companies
• Speed of doing business
– 24/7
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Usage of Internet
Usage of Internet (Cont’d)
• Complimenting existing brick & mortar
business
– ‘Who we are’
• Sale promotion
• Customer awareness
• Gathering opinions & trying out new ideas
– Online Opinion Polls
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© 2002 Prentice Hall
Usage of Internet
Usage of Internet (Cont’d)
• Equal Opportunity for all Business
– Allow competitions with larger companies
• Mass Distribution
– ‘Marketing heaven’
– Ease of update
• Paper-free Environment
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Usage of Internet
Usage of Internet (Cont’d)
• Customer Service & Support Resource
– Use of FAQ
• Efficiency & Unequaled Cost-effectiveness
– For niche products / services
– Provide information
• Managerial Tool
– Use of e-mail
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© 2002 Prentice Hall
Usage of Internet
Usage of Internet (Cont’d)
• Logistics, Research & Development
– Chat rooms, online interactive sessions
– Market research firm
• Presence Triggers Business
– E.g. B2C, B2G
• Good Education & Information Tool
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© 2002 Prentice Hall
Usage of Internet: Who’s Online?
Who’s Online?
U.S. Population Online
60
48
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38
40
Million
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30
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51
56
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10
0
1996 1997 1998 1999 2000 2001 2002 2003
Year
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Awad –Electronic Commerce 1/e
21 Dec 6, 1999, p. R6
© 2002 Prentice Hall
Source: Peterson, Andrea, ‘Lost in the Maze.’ Wall Street Journal,
Day 5 Agenda
• http://web.mit.edu/entforum/www/SBS/
• I haven’t corrected Assignment # 1 yet but I
will do so this weekend.
• Assignment 2 will handed out next class.
• Quiz #1 will be on October 3
• Finish Discussion on Internet and WWW
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© 2002 Prentice Hall
Usage of Internet: Who’s Online?
Who’s Online? (Cont’d)
Percentage of Online Customers Who Buys the Following Products/Services
60%
50%
40%
30%
20%
10%
0%
Book
s
WWW
CDs
, Tap
Softw
a re
es , A
lbum
s
Air T
icket
s
Cloth
ing
Vide
o
s
Hote
l Res
ervat
ions
Awad –Electronic Commerce 1/e
23 Dec 6, 1999, p. R6
© 2002 Prentice Hall
Source: Peterson, Andrea, ‘Lost in the Maze.’ Wall Street Journal,
Limitations
Limitations
• Security & Privacy
– 20% met Federal Trade Commission (FTC)
standards for protecting consumer privacy
– 90% compliance rate by Internet companies for
posting their privacy policies
– FTC ‘Fair Information’ Principles:
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Notice/Awareness
Choice/Consent
Access/Participation
Security/Integrity
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24 Privacy.’
Source: Simpson, Glenn R., ‘FTC Finds Web Sites Fail to Guard
Wall Street Journal, May 11, 2000, p. B12
Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Limitations
Limitations (Cont’d)
• Rash of Fake IDs
– Online sale of fake identification documents
– Accounts for > 30% of all fake documents in U.S.
– Three levels of fake ID procurements:
• Sell real-looking documents in customer’s name
• Sell templates that allow customers to make their own
phony documents
• Do-it-yourself counterfeiter
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Source: Associate Press, May 20, 2000, p. A1ff
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Limitations
Limitations (Cont’d)
• Threats of Hackers & Viruses
– Threaten the integrity of Internet files &
transactions
– Hacking schools & Virus software
• Stressed Out Networks
– Pressure to upgrade & maintain more complex
networks
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Limitations
Limitations (Cont’d)
• Fulfillment
– Merchant’s link with vendor
– Responsiveness
• Struggling Small Business
– Cost of maintaining & upgrading
– Security
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Limitations
Limitations (Cont’d)
• Customer Relations
– Heavy demand on customer service
• Products Having No Online Demand
– E.g. Houses, cars
• Regulated Products
– E.g. Alcohol
• Shortage of E-literate People
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Internet & WWW: Ease of Searching Online
Ease of Searching Online
• Search Engines
– www.selfpromotion.com
• Bookmark
• Revisiting
– 8-second Rule
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Internet & WWW: BBS vs. Pay Services
Bulletin Board Systems
vs. Pay Services
• BBSes:
– Allow local people to exchange information
free of charge
– E.g. email, netnews
– Through subscription, e.g. AOL, Prodigy
• Pay Services:
– Provide email, interactive talking, etc.
– Include security software
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Internet & WWW: Web Fundamentals
Web Fundamentals
• World Wide Web (WWW)
– Global hypertext network of millions of Web
servers & browsers
– Connected by Hypertext Transfer Protocol (HTTP)
– Web pages can be designed by Hypertext Markup
Language (HTML)
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Web Fundamentals
Web Fundamentals (Cont’d)
• Uniform Resource Locator (URL)
– E.g. http://www.virginia.edu
– http:// - protocol designer
– www.virginia.edu - server name
• www means the network is located on a dedicated
web server somewhere
• virginia is the name of the web site requested
• edu indicates the site is an educational institution
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Web Fundamentals
Web Fundamentals (Cont’d)
• Security Protocols
– Secure Socket Layer (SSL)
• Most widely used
• Developed by Netscape Communications
– Secure HTTP (S-HTTP)
• Allows web clients and servers to specify privacy
capabilities independently of one another
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Internet & WWW: Internet Language
Internet Language
• Provider
– An organization providing an entrance ramp to
Internet
• Browser
– A software program loaded in a PC allowing
user to access Internet
• Server
– Destination point on Internet
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Internet Language
Internet Language (Cont’d)
• Telnet
– A basic Internet service allowing user to access
remote computers
• File Transfer Protocol (FTP)
– A standard protocol allowing user to copy files
from computer to computer on Internet
• Universal Resource Locator (URL)
– A standard way of giving the address of a
resources on Internet that is part of WWW
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Internet Language
Internet Language (Cont’d)
• Malicious Software
– Viruses
– Trojan horse
• A program on the surface seems to perform
legitimate work, but causes damage when executed
– Zombie
• A launching program residing in an Internetattached computer
– Worm
• A program replicating itself on a computer’s hard
disk, slowing down the computer’s performance
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Internet & WWW: Implications for Management
Implications for Management
• Surge of E-commerce
• IT Job Market
– 850,000 IT jobs go unfilled in 2001
– Job Loyalty
• First National Techies Day
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Internet & WWW
Summary
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Introduction
Usage of Internet
Limitations
Ease of Searching Online
Bulletin Board Systems vs. Pay Services
Web Fundamentals
Internet Language
Implications for Management
WWW
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Extra Stuff
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http://www.ecommercetimes.com/perl/story/18598.html
http://www.icecc.com/
http://itmanagement.earthweb.com/ecom
http://www.internetnews.com/ec-news/
http://live.emarketer.com/
http://web.mit.edu/entforum/www/SBS/
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall