Transcript Document

Chapter 2:
Understanding
E-Business Technology
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 2 Slide: 1
LEARNING OBJECTIVES(1):
•
•
•
•
•
Explain the importance of infrastructures.
Discuss how the Internet was developed.
Justify the importance of standards.
Describe how the Internet works.
Compare and contrast the last mile connections to
the Internet.
• Explain the implications of lack of access for
individuals.
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Chapter 2 Slide: 2
LEARNING OBJECTIVES(2):
• Describe the threats to Internet security and how
these can be addressed.
• Explain the role that governments are taking to
foster the growth of the Internet and e-business.
• Discuss the role of an Internet service provider.
• Explain how the World Wide Web works.
• Speculate on the future of the World Wide Web.
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Chapter 2 Slide: 3
Vignette:
Developing Infrastructure
• Thinking Strategically
– Speculate on how a consumer’s life would be different
if there was no national highway system.
– Speculate on how a business would have to operate
differently if there was no national highway
infrastructure.
– Determine what other infrastructures are important to a
consumer’s life and business efficiency.
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Chapter 2 Slide: 4
Telecommunication
Infrastructure
•
•
•
•
Telephone lines and exchanges
Cable TV lines and broadcasters,
Satellite and cellular broadcasters
The Internet backbone.
– Data lines, routers, switches, servers, and the
local system used to send or view information
at a user's site such as a PC with a Web
browser.
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Chapter 2 Slide: 5
THE INTERNET
(Interconnected Network)
• The original 1969 project was called the
ARPANET.
• 1986 the National Science Foundation
develops the NSFNET.
• 1995 main Internet traffic routed through
interconnected network providers.
Additional History Lines:
http://www.govtech.net/publications/gt/1998/oct/untangling/history.shtm
http://info.isoc.org/guest/zakon/Internet/History/HIT.html
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Chapter 2 Slide: 6
Figure 2.1: Global Internet Traffic Map
Map Courtesy of: TeleGeography, Inc., ©TeleGeography, Inc. 2001 (www.telegeography.com)
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Chapter 2 Slide: 7
Telecommunication Standards
• Open standards: Open standards such as Transport
Control Protocols (TCP) and Internet Protocols (IP)
(combined: TCP/IP) are not owned by a single company
allowing different computer systems (Windows, UNIX,
Macintosh, etc.) to develop and read the same content.
• This has allowed individuals, entrepreneurs, and
businesses to not be locked into one single company's
communication system.
• This has fostered innovation, and ease of use is leading
businesses to adopt these standards for internal and
external communication.
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Chapter 2 Slide: 8
Table 2.2: Internet Governing
Organizations
Term
ICANN
Meaning
Internet Corporation for
Assigned Names and
Numbers
(www.icann.org)
ANSI
American National
Standards Institute
(www.ansi.org)
Internet Society
(www.isoc.org)
Internet Engineering Task
Force (www.ietf.org)
World Wide Web
Consortium (www.w3.org)
ISOC
IETF
W3C
Used For
Oversees the domain name
registration system under the
auspices of the Internet Assigned
Numbers Authority (IANA:
www.iana.org)
Represents U.S. interests related to
the Internet.
Nonprofit organization for standards,
education, etc.
An open group that influences the
standards set for the Internet.
Governs the set of World Wide Web
protocols.
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Chapter 2 Slide: 9
Internet Service Provider
• All users need to link to the Internet
backbone. Business users can use an ISP or,
depending upon their size and capabilities,
link to a Network Access Provider.
• Each server that is hooked up to the Internet
is a Host.
Links to maps:
http://www.geog.ucl.ac.uk/casa/martin/atlas/atlas.html
www.telegeography.com
www.cs.bell-labs.com/~ches/map/
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Chapter 2 Slide: 10
Bandwidth
• Bandwidth is an indication of the size of the
pipe through which electronic information
must move.
• Bandwidth is measured in bits per second or
bps. Bps is counted in thousands (kilo bits
per second: Kbps), millions (mega bits per
second: Mbps), and billions (giga bits per
second: Gbps).
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Chapter 2 Slide: 11
Table 2.2: Internet Infrastructure Symbols
Symbol
Meaning
Used For
Server
Computer that holds content and “serves” it to
the Internet as requested.
ISP
ISPs use server farms (multiple networked
servers {hosts}) or very large servers or to
handle large number of users or content.
Data Line
This is the line (twisted pair, coaxial, fiber, etc.)
that carries the electronic Internet signal.
The wider the line, the more data carried.
Web
Content
This includes the files that are sent to the
individual’s browser.
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Chapter 2 Slide: 12
Table 2.2: Internet Infrastructure Symbols
Symbol
Meaning
Used For
Web
Browser
This is the access device (PC, iTV, wireless
device, etc.) that displays Web content.
Internet
Backbone
This is the broadband, high-speed network of
telecommunication lines that make up the
Internet.
Data Packet
A “packet” or set of data that is part of a larger
file. These are routed around the Internet and
reassembled at the users access device.
Router
This transfers, or switches the route of data
around a network. Internet routers route packets
of information throughout the Internet.
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Chapter 2 Slide: 13
How the I-Way Works
Network
Access Provider
Content
Provider
Internet
Backbone
"The Last
Mile"
Local
ISP
Network
Access Provider
End User’s
Internet
Browsing Device
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Chapter 2 Slide: 14
How the I-Way Works (XP)
Network
Access Provider
Content
Provider
Internet
Backbone
"The Last
Mile"
Local
ISP
Network
Access Provider
End User’s
Internet
Browsing Device
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Chapter 2 Slide: 15
Last Mile Lines (1)
• Twisted Pair: Two copper wires are used for
analog telephones.
– Turned into a digital signal for the computer by using a
modem
– Twisted pair lines to directly send digital signals through
digital subscriber lines (DLS).
• Phone companies have twisted pair lines running
into most homes in the United States and have the
ability to operate with both downstream to the user,
and upstream from the user to a host.
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Chapter 2 Slide: 16
Last Mile Lines (2)
• Coaxial: Cable televisions systems most often use
coaxial cables. In most cases cable companies can
broadcast signals downstream to homes, but do
not have the ability to switch signals or to receive
upstream signals, this needs to be done over phone
lines.
• Fiber Optic: These pure digital lines carry very
high bandwidth.
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Chapter 2 Slide: 17
Wireless Last Miles
• Wireless: Wireless Internet access to home users
can be provided over satellite broadcast systems
and cellular telephone systems.
– In countries where landlines do not exist or are too
expensive to build wireless telecommunications
connections are growing.
Wireless sites:
Hughes Network Systems Inc. www.hns.com
Teledesic www.teledesic.com
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Chapter 2 Slide: 18
Figure 2.3: U.S. Broadband Access
(homes in thousands)
16000
14000
12000
10000
8000
6000
4000
2000
0
1999
Satellite
Wireless
DSL
Cable
2000
2001
2002
2003
Source: Roger o. Crockett and Andy Reinhardt, “Where To Find Warp Speed,” Business Week, October 18, 1999.
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Chapter 2 Slide: 19
Wireless Cellular Systems
• Pagers, cellular telephones, and handheld
devices are linking to the Internet giving
access to email and Web pages.
– Lack of standards has limited the growth of
cellular access.
– G3 digital communication system will enable up
to 2 megabits per second, enough bandwidth to
allow cellular phones to provide
videoconferencing.
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Chapter 2 Slide: 20
Figure 2.4: Mobile Commerce Revenues
(U.S. dollars in billions)
25
20
Asia
Western Europe
North America
15
10
5
0
2000 2001 2002
2003 2004 2005
Source: Rajat Paharia, Laura Pfeifer, and Thomas J Kosnik, “Should you be thinking Wireless?”
1to1 Magazine, Man/June 2001, pp. 34-37.
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Chapter 2 Slide: 21
Case 2.1: Streaming Video
• Thinking Strategically
– Consider the importance of streaming video.
– Determine how this will change the nature of
communication over the Internet.
– Decide what types of devices will need to be
used to maximize the use of streaming video.
– Explain how this will effect business and
marketing practice.
Streaming video content: Broadcast.com http://broadcast.com/
RealNetworks www.realnetworks.com
SportsLine http://cbs.sportsline.com
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Chapter 2 Slide: 22
Digital Convergence
• Digital convergence implies that multiple
technologies will be used to access the Internet.
– Telephones will use IP standards to send and receive
email and Web page data, televisions will be able to
access the Net, and computers will be accessible from
other independent IP devices.
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Chapter 2 Slide: 23
Security
• Firewalls are security measures designed to
prevent hackers from gaining access
through a server to a Web site.
• Virtual private networks (VPN) connect
businesses by using dedicated lines
(communication lines that are not open to
outside users) that are connected to ISPs.
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Chapter 2 Slide: 24
Cybercrime (1)
• Cybercrime: criminal activity on the Net.
– Hackers are individuals who attempt to break
through online firewalls for pleasure or profit.
• Infrastructure attack occurs when an individual
interferes with the operations of a computer system.
• Economic Espionage occurs when individuals steal
intellectual property. They "hack" their way into
computer networks.
– Companies defend against hacking by using
firewalls and ethical hackers.
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Chapter 2 Slide: 25
Access and Equity
• Digital divide: the inequity between the information rich
and the information poor.
• In the United States the digital divide has been narrowing.
– Families earning less than $20 thousand per year have only one
quarter of the computers of families owning over $75 thousand per
year.
– World-wide 88% of Internet users live in industrialized countries
that represent only 2% of the world’s population.
– There are more Internet accounts in London than in all of Africa.
• U.S. E-rate program: provides funding for universal
service for schools and libraries.
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Chapter 2 Slide: 26
Case 2.2 : Fingered on the Net
• Thinking Strategically
– Describe some of the damage that could result from
the creation of the Melissa virus.
– Explain why an individual would want to create a
virus and release it on the Internet.
– Describe the damage the resulted from the
threatening email messages sent to the high school.
– Explain why an individual would want to send such
an email.
– Explain how the publicity about the rapid capture of
these individuals may effect future attacks over the
Internet.
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Chapter 2 Slide: 27
The Role of an Internet Service Provider
• Application service provider (ASP)
– Uses the Internet to replace or supplement applications
and services that a business would normally provide for
itself to an outsourced subscription bases.
• Mirrored site
– Allows a Web site to be placed on more than one ISP,
allowing less congestion and faster delivery of content.
• Cybercafe
– A small business that offers Internet access. This may
be for a fee or as a draw to a business that offers coffee
or food.
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Chapter 2 Slide: 28
Figure 2.5: U.S. Home Market ISP Share
America
Online
24%
MSN
6%
All Others
(< 2% share)
54%
United Online
(NetZero &
Juno Online)
6%
Prodigy
3%
@Home
3%
EarthLink
4%
Source: Patricia Fusco, “Top U.S. ISPs by Subscriber: Q3 2001,” Compaq ISP Planet, November
2, 2001, <http://isp-planet.com/research/rankings/usa.html>.
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Chapter 2 Slide: 29
Political Environment
• Governments serve and protect constituencies:
– Constituencies are those people that are involved
with or served by an organization.
• To avoid regulation, the Internet industry is in
favor of self-regulation and software solutions
rather than government intervention.
– Internet constituencies include: governments,
businesses, customers, ISPs, schools, families,
children, and others impacted by changes in
telecommunications.
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Chapter 2 Slide: 30
National Telecommunications and
Information Administration (1)
• The U.S. NTIA has set forth five primary
principles for global electronic commerce:
– The private sector should take the lead in
developing Internet based commerce.
– Governments should avoid undue restrictions
on Internet based commerce.
– Governments should recognize that the Internet
is a unique medium and should not have the
same regulations as other media.
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Chapter 2 Slide: 31
National Telecommunications and
Information Administration (2)
• The U.S. NTIA has set forth five primary
principles for global electronic commerce:
– Government intervention should be focused on
ensuring competition, protecting intellectual property
and privacy, preventing fraud, fostering transparency,
supporting commercial transactions, and facilitating
dispute resolution.
– Electronic commerce should be facilitated on a global
basis.
www.ntia.doc.gov
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Chapter 2 Slide: 32
Table 10.1: U. S. Laws
Governing the Internet (1)
Law
The Internet Tax
Freedom Act
The Child Online
Protection Act
The Child Protection
and Sexual Predator
Punishment Act
Description
This sets a national policy against interfering
with interstate commerce over the Internet and
imposes a 3-year moratorium on taxes for
online services.
Online distributors of material harmful to
minors must restrict access to minors. Web site
operators must check visitors IDs or face
$50,000 in fines and six months in prison for
each access by a minor.
Imposes penalties for using the Internet to send
obscene material to a person under 16 or to
sexually solicit minors. ISPs must report child
pornography once it is made aware of it.
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Chapter 2 Slide: 33
Table 10.1: U. S. Laws
Governing the Internet (2)
Law
The Children's
Online Privacy
Protection Act of 1998
The Government
Paperwork
Elimination Act
The Digital
Millennium
Copyright Act
Description
Establishes a framework for regulating the
unfair collection of personal information from
children over the Internet.
Makes it possible to use electronic signatures
for forms submitted to federal agencies.
Sets rules for copyrighted material online. It
helps limit ISPs liability for copyright
infringements by their customers. Outlaws
technology that can crack copyright protection
devices.
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Chapter 2 Slide: 34
Case 2.3: The Race to Wire the World
•Thinking Strategically
–
–
–
–
–
Determine how this will effect the content that is
available online.
If customers around the world are able to access the
Internet, decide how important it is to have an Internet
presence for a business.
Consider what will be the language of the Web.
Decide if a company needs to have Web sites designed
for multiple languages.
Speculate on the social impact of the Internet when the
world is connected.
Use sites: www.nua.ie/surveys/analysis/graphs_charts/comparisons/index.html
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Chapter 2 Slide: 35
THE WORLD WIDE WEB
• Developed the WWW in 1990 at the Particle Physics
Laboratory in Geneva, Switzerland by Tim Berners-Lee.
• The Web architecture was designed to emulate the human
brain by allowing the linkage of random associations.
• Uses the Internet backbone to send information from
servers, or repositories of file information, to browsers or
software designed to display the files.
• The Web allows for the transfer of hypermedia-based files
allowing for linking to other pages, places, or applications.
Tim Berners-Lee's Web site: http://www.w3.org/People/Berners-Lee
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Chapter 2 Slide: 36
Figure 2.6: World Share of
Internet Users
Canada &
USA
35%
Latin
America
5%
Middle East
1%
Africa
1%
Asia/Pacific
28%
Europe
30%
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Chapter 2 Slide: 37
The Browser
• The browser is the interface between the Web content and
the user taking text, codes, and instructions and then
displays the requested design on a screen.
• New versions of code requires new that browsers be
redesigned to read the latest codes.
• When a hyperlink is clicked, the browser pulls up the
associated file to "play" through the browser.
• Plug-ins allow rich content files such as video, radio
programs, and other multimedia content to play through
browsers.
• Browser can act as an operating system for Web devices.
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Chapter 2 Slide: 38
Server Browser Interactions
Web Browser
Request
Server
Text file
Graphic Files
Plug-in
Flash or media file.
Multimedia
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Chapter 2 Slide: 39
Web Address Structure
• The Internet addressing system locates IP addresses and
domain names.
• The current IP address structure consists of four numbers
separated by dots (.) or decimals (such as 111.222.333.4).
• Most sites uses a unique domain name for a Web site such
as www.name.extension.
• The domain name is part of the URL (Universal Resource
Locator) address.
Links to Domain name sites:
VeriSign: www.verisign.com
ICANN: http://www.icann.org/registrars/accredited-list.html
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Chapter 2 Slide: 40
URL Structure
http://www.mssc.edu/pages/mssc.htm
Hypertext
Protocol
WWW Page Host Group
(Domain Name)
File Path File Name
File Type (HTML)
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Chapter 2 Slide: 41
Top Level Domains
Top Level
Domains
.com
.edu
.gov
.org
.net
.fr
.de
.ca
Meaning
Commercial
Educational
Government
Nonprofit organizations
Network companies
National Examples
France
Germany
Canada
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Chapter 2 Slide: 42
Future Of The Web
• Three major changes impacting Internet
technology.
– The first is the movement toward highbandwidth delivery.
– The second is the movement of the Internet to
devices other than the PC.
– The third force is the growth of wireless.
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Chapter 2 Slide: 43
Exercise 2.1
Chasing the Net Connection
• Web users must have access to the Internet.
– Track a single Web connection starting with an Internet
device such as a PC or WebTV. What is used to connect
to the last mile: a modem, coaxial cable, or fiber-optic
wire?
– Describe how the speed of the connection influences
how the Web is used.
– Determine how the last mile is connected to the
backbone. Is it running through an ISP?
– Use the ISP’s Web page or call the ISP to investigate
how it is linked online.
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Chapter 2 Slide: 44
Exercise 2.2 Web Devices
• Explore your home and determine what benefits
there could be in connecting different appliances
to the Net.
• Explain how an individual’s life could be better if
remote access to appliances was possible.
• Speculate on which companies, such as utility
companies, could benefit by accessing information
from a home or a business.
• Determine how these connections would be made.
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Chapter 2 Slide: 45
Competitive Exercise 2.3:
Which Line to Invest In?
• Assume your company has asked your team to evaluate an
investment in companies that provide Internet backbone lastmile lines. Your firm will be investing considerable amounts of
money in these companies.
– Evaluate the alternative last-mile connections.
– Indicate if your company should invest in technologies that are
dominant now or ones that may be dominant in the future. Keep in
mind that if all teams recommend investing in the same
technologies, then there may be too much capacity and therefore
lower prices and returns.
• Develop your arguments based on the issues surfaced in this
chapter.
– Consider both global access questions and digital divide questions.
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Chapter 2 Slide: 46