Transcript Lecture #16 -- Chapter 9 - Courses

Welcome to CMPE003
Personal Computer
Concepts: Hardware and
Software
Winter 2003
UC Santa Cruz
Instructor: Guy Cox
Class Information
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Midterm #2
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Monday – February 24, 2002.
ID required.
Covers Chapters 5, 7, 9, 10 and 12.
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Multiple choice
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Book reading plus lectures.
Requires Scantron #F-1712-ERI-L (pink)
~50 questions
No make-ups after the fact
January 23, 2003
2
Assignments
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Assignment #5 – Due February 28, 2003
Programming
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Edit a Java Script program file
If you want more information about
javascript,
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visit http://www.htmlgoodies.com.
http://www.soe.ucsc.edu/classes/cmpe003/Winter03/hw5_javascript.h
tml
January 23, 2003
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The Internet in Business:
Corporations, Businesses, and
Entrepreneurs
Chapter 9
Objectives
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Discuss the pervasiveness and inevitability of business on
the Internet
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Explain how money factors, especially advertising, affect
the Web
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Describe the likely success factors for Web entrepreneurs
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Differentiate between business-to-Consumer and
Business-to-Business sites
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Explain the importance of Internet transmission speed for
business sites
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Differentiate between intranets, extranets and virtual
private networks
January 23, 2003
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E-Commerce
Electronic Commerce
Buying and selling over the Internet
January 23, 2003
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E-Commerce: Retail Sites
Retail becomes etail
January 23, 2003
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E-Commerce: Retail Sites
Clothes
Out-of-print biography
Used car
Bargain airline tickets
Music CDs
Videos
Baby equipment
Jewelry
Sporting goods
Office supplies
Cosmetics
Flowers
Gifts
Groceries
What’s for Sale?
EVERYTHING!
January 23, 2003
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Etail: Advantage to Consumer
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Any time shopping
No need to dress and
travel
Saves time
Provides simple means
to comparison-shop
Anyplace
Contributes to
competition
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Etail: Savings to retail business
No physical store front
People time
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The Commerce Site
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Lists and views of products and prices
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Content
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Product related
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Updated regularly
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Written to interest visitors in returning to site to purchase in
the future -- designed for transactions
January 23, 2003
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Commerce vs. Content Sites
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Commerce adding content
Content adding products and sales information
Division is no longer clear
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E-Commerce Acceptance
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Opposition to e-Commerce by in-person sales
representatives
Strategy to merge Etail and Retail
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Web site prices may be higher
Commission to sales representative on each Internet
transaction regardless of their involvement with its origin
Web site marketing followed by local store purchase
January 23, 2003
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E-Commerce Acceptance
Successful web site may alienate others
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Promoting a Web Site
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Users must find their way to the site
Advertising needed
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Traditional ads on web pages
Portals
Search Engines
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Portals
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Definition – entry point to the rest of the Internet
Presents content and links to variety of topics
Customize the content
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User provides personal data
Portal provides related information and links
Can become your home page
January 23, 2003
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Portals: Earning Money
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Flat fee to be listed on portal based upon number
of visitors to the site
Percentage of sale generated by a visitor who
traveled to the affiliate via the portal
January 23, 2003
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Portals: Who Are They?
Yahoo!
MSN
Snap!
Excite
Netscape
Go Network
America
Online
Search engines that expanded their content
and retail connections
January 23, 2003
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Advertising
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Pay a fee to the host site
Disadvantage of online Ads
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Contain graphics and applets that load slowly
Ads load first
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Advertising: Types of Online Ads
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Banner ads
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Live banner
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Clickable
Users reluctant to click through
Displays sales pitch
User does not need to leave current site
Work slowly
Expensive to develop
Context-sensitive
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Ad is related to subject matter on web page
Greater click through and conversion
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Web-based Business
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Simple to start-up of new businesses
Provides access to people and global markets
Minimum investment
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Server link
Home page
Competition
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Not a level playing field
Large advertising budgets of large companies “get the
word out”
January 23, 2003
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Web-based Business
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Make business
look large
Many products
can be offered
No physical
space to reflect
size
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Payments
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Finalize order by
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Phone
Fax
Call with credit card number
Enter credit card number
Security
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Communication between buyer and retailer is encrypted
Use SSL (Secure Sockets Layer) protocol and generate
the message “our secure server”
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Taxes
American Federal Law
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Taxes due only on mail-orders within your state
Actual ‘presence’ of etail is debatable
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Taxes
Internet Tax Freedom Act – 1998
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Provisions
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No tax on Internet access charges
No new tax on out-of-state businesses (insures that presence
is not redefined)
Creates temporary commission to study Internet taxes
Demand that foreign governments keep Internet free of taxes
and tariffs
Free of taxes for three years
Can impose same tax regulations as phone or mail order
Provisions extended through 2005
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Success Factors: Making a Profit
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Content
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What you have to say and
offer
Cannot be static
News about product,
scores, contest, searches
Uniqueness
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Not offered elsewhere
Difficult to obtain
Self-help
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Search for product
Order product
Check the status of an
order
Track a delivery
Community
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Provide sense of
community
Sharing between visitors
Prizes
Repeat business is needed
January 23, 2003
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B2C: Business-to-Consumer
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Activity between business and individual
User makes purchase based upon personal
decisions
Growing
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$38 billion in 1998
Over $800 billion by 2005
Global trend – more than ½ online sales will be
outside US by 2004
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B2B: Business-to-Business
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Activity of one business providing another with
materials and supplies
Advantages to buyers
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Problems
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Reduced costs of procurement
Consider a larger number of suppliers
Integration of supply chain
Security
Antitrust concerns
Growing
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$92 billion in 1998
$2 trillion in 2004
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Internet Speed: Traffic
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Not planned for current use
Victim of its own success
Original Internet
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Low-speed
Text-based
Limited sites
Today’s Internet
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100’s of Million of users
Downloading high-volume multimedia data
Causes slow transmission speeds
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January 23, 2003
Congestion on the links…
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Internet Speed: Impacts Business
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Large companies use T1 and T3 lines and have
servers capable of thousands of concurrent
visitors
Smaller business connect via ISP or pay a
company with high-speed connections to host
their site
January 23, 2003
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Internet Speed: Solutions
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Increase bandwidth
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Increase backbone capacity
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Satellite
ISDN
DSL
Cable modem
Backbone – communication lines across
geographical areas
Advances in technology
Investment in new facilities
Change Internet access fees
January 23, 2003
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Streaming
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Hear and see digitized content as it is
downloaded
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Uses substantial bandwidth
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Audio
Video
Animation
Quality of content
 Speed of connection
 Internet traffic
Performance will improve as bandwidth improves
Content is displayed using Plug-ins
January 23, 2003
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Streaming: RealPlayer
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Free download from
RealNetworks
Broadcast.com
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Live radio
Canned television shows
January 23, 2003
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Sharing Files
Unicasting
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Send multiple computers copies of files
individually
Wastes bandwidth as you are sending the
same file over and over
January 23, 2003
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Sharing Files
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Broadcast
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Send one copy of the file to every computer on
the network
Wasteful – some users do not need the file
Compromises security
Multicasting
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January 23, 2003
Send one copy of the file and it is directed only
to the appropriate recipients
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Push Technology: Webcasting
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Software that sends (pushes) information from the
Internet to a user’s PC
Makes business active participants in providing
information to users
January 23, 2003
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Push Technology: How it Works
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User provides consent by downloading and
installing free push software
User selects channels to receive
User sets update schedule
Push software goes to the Internet on
schedule and downloads updated
information for the channels
January 23, 2003
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Push Technology: Good or Bad?
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Time-saver for user; no browsing required
Uses precious bandwidth to send graphics and
advertising
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Excellent candidate for multicasting
January 23, 2003
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Intranets
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Internal network
Private to a certain company
Easy and fast to setup
Inexpensive
January 23, 2003
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Intranet: Setting it Up
Same components as needed for Internet
Computers for access
Server
TCP/IP
Software including a browser
January 23, 2003
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Intranet: Web Pages for Employee
Use
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Personnel data
Internal job posting
Corporate policy information
Available training courses
Cafeteria menu
Notices from management
January 23, 2003
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Intranet, Internet, Extranet
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Internet
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Intranet
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Public
Private
Can be linked to Internet
Extranet
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January 23, 2003
Provide access to Intranet to selected customer and
suppliers
Replacing EDI
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VPN: Virtual Private Networks
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Use public Internet as a channel for private data
communication
Use the Internet to access the company network
rather than private lines
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January 23, 2003
Sharing public lines
Lower cost
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VPN: Benefits
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Lower operating costs
Simplifies communications
No 800 lines and long distance charges
Reduces in-house management responsibilities
Communication needs handled by ISP
January 23, 2003
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VPN: Technology
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Tunneling / encapsulation
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Transfer of data between two similar networks over an
intermediate network
Point-to-Point Tunneling Protocol (PPTP) – proposed
protocol for tunneling
Encloses packet of one protocol (PPTP) inside packet
using different protocol (TCP/IP)
Encryption
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Packets are encrypted before encapsulation
Authentication software used
January 23, 2003
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Consolidation of the Web
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Consolidation brings efficiency and uniformity
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Occurring quickly
Large scale
1999 AOL purchased Netscape
Conglomerates “moving in” will control the
majority of what we see
January 23, 2003
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