Transcript lecture 20 IT

Internet & e-commerce
PART 2
LEARNING OBJECTIVES
• Web 1.0 - Ebusiness
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Disruptive Technologies and Web 1.0
Advantages of Ebusiness
Ebusiness Models
The Challenges of Ebusiness
• Web 2.0 – Business 2.0
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Web 2.0: Advantages of Business 2.0
Networking Communities with Business 2.0
Business 2.0 Tools for Collaborating
The Challenges of Business 2.0
• Internet Basics
Disruptive Technologies
• Disruptive technology – A new way of doing things that
initially does not meet the needs of existing customers
WEB 1.0 – THE CATALYST FOR
EBUSINESS
• Ecommerce – Buying and selling of goods and
services over the Internet
Pure Vs. Partial Ecommerce
– Three dimensions:
• the product (service) sold [physical / digital];
• the process [physical / digital]
• the delivery (intermediary) agent [physical / digital]
– Traditional commerce
• all dimensions are physical
– Pure EC
• all dimensions are digital
– Partial EC
• all other possibilities include a mix of digital and physical
dimensions
Dimensions of Ecommerce
PROCESS
PRODUCT
VIRTUAL
DIGITAL
VIRTUAL
DIGITAL
PHYSICAL
PHYSICAL
DELIVERY AGENT
PHYSICAL
DIGITAL
VIRTUAL
Ecommerce Strategies
• Brick-and-mortar
• Traditional, physical companies
• Click-only (“virtual”) companies
• Online only
• Click-and-mortar (or “Brick & Click”)
• Both physical and virtual
– Challenge: increased IS complexity
BUSINESS TO BUSINESS EC:
B2B Sell-Side Marketplace
Key mechanisms:
electronic catalogs
and forward auctions
(sell to highest bid
price)
In the sell-side marketplace,
organizations sell their products or
services to other organizations
Electronically from their own Web
site and/or from a third-party Web
site.
This model is similar to the B2C
model in which the buyer comes to
the seller’s site, views
catalogs, and places an order.
In the B2B sell-side marketplace,
the buyers are organizations.
BUSINESS TO BUSINESS EC:
B2B Buy-Side Marketplace
Key mechanism:
reverse auctions
(buy from lowest bid
price)
The buy-side marketplace is a
model in which organizations buy
needed products and
services from other organizations
electronically.
BUSINESS TO BUSINESS EC:
Electronic Exchanges
B2B Ebusiness
Linking Value Chain & Value Systems
• With Internet and WWW, B2B now available
to companies of all sizes
– Intranet – internal, private network using Web
technologies to facilitate transmission of
proprietary information within the organization
– Extranet – two or more firms using the Internet to
do business together
Internet, Intranet, Extranet
Intranet
• Intranet System Architecture
– Firewalls – hardware devices with special
software that prevent unauthorized access
– An intranet server is placed behind the
firewall
– Packets are never routed outside the firewall,
but remain within the organizations network
Intranet System Architecture
Intranet Applications
Collaboration
Training
Intranet Hub
Application
Integration
Online Entry of
Information
Real-time Access
To Information
Benefits of Intranets
Improved information access to authorized user
Improved timeliness and accuracy of information
Global reach allowing employees access from
anywhere
Cross-platform integration
Low cost deployment
Positive return on investment
Extranets
• New, more affordable alternative to EDI
(private network)
• Advantages
– Improved timelines and accuracy of
information
– Central management of documents
– Cross-platform nature
– Low cost of adoption
– No specific user training required
Extranet System Architecture
Extranet Applications
Supply Chain
Management
Real-Time
Info Access
Procurement
Portals
Exchanges
Distribution
Portals
Collaboration
Enterprise
Portals
Benefits of Extranets
Improves timeliness and accuracy of
communications reducing errors and
misunderstandings
Allows central management of documents allowing
single updates which are then available to all
interested parties
Uses standard web protocols allowing disparate
computing platforms to communicate without
additional investments
Easy to use, requires little training
Used to automate transactions, reducing cost and
cycle time
TYPES OF C2C E-COMMERCE
E-Auctions
• Forward auction
– Sellers post goods or services for sale
– Buyers bid on these items
– Highest bid wins
• Reverse auction
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Buyers post a request for quote (RFQ)
Seller proposes a bid
Lowest seller bid wins
Used frequently in B2B e-commerce
E-Auction Fraud
• E-auctions marred with more fraud than any
other Internet activity
– 42% of all Internet-fraud related complaints
– Average loss: $1,155
• Types of e-Auction fraud
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Bid luring
Reproductions
Bid shielding
Shipping fraud
Payment failure
Nonshipment
E-GOVERNMENT
• Providing information
about public services
– To citizens
– To organizations
– To other governmental
agencies
• 1998 – Government
Paperwork Elimination
Act
Government-to-Citizens
• Interactions between
the government and
its constituents
– IRS – e-filing
– Grants.gov
– e-voting initiatives
Government-to-Business
• Relationships between
businesses and the
government
– E-procurement
– Forward auctions
• Businesses buy surplus
government equipment
• Auctionrp.com
– Online application for
export licenses
Government-to-Government
• Interactions between
countries
– Regulations.gov
– Export.gov
• Interactions between
different levels of
government
Summary of Ebusiness Models
MBUSINESS:
Supporting Anywhere Business
• Mobile business - The ability to purchase goods and
services through a wireless Internet-enabled device
WEB 2.0: ADVANTAGES OF
BUSINESS 2.0
• Web 2.0 – The next generation of Internet use –
a more mature, distinctive communications
platform characterized by three qualities
– Collaboration
– Sharing
– Free
Web 2.0 is a set of economic, social, and
technology trends that collectively form the basis
for the next generation of the Internet—a more
mature, distinctive medium characterized by user
participation, openness, and network effects.
Although the term suggests a new version of the
World Wide Web, it does not refer to an update to
Web technical specifications; instead, it refers to
changes in the ways software developers and endusers use the Web as a platform.
Characteristics of Business 2.0
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Content sharing through open
sourcing
User-contributed content
Collaboration inside the
organization
Collaboration outside the
organization
Content Sharing Through Open
Sourcing
• Open system – Nonproprietary hardware and
software based on publicly known standards that
allows third parties to create add-on products to plug
into or interoperate with the system
• Source code – contains instructions written by a programmer
specifying the actions to be performed by computer software
• Open source – any software whose source code is made
available free for any third party to review and modify
User-contributed Content
• User-contributed content – Created and updated by
many users for many users
– Reputation system – Where buyers post feedback on
sellers
Collaboration Inside The
Organization
• Collaboration system – Set of tools that supports the
work of teams or groups by facilitating the sharing and
flow of information
• Collective intelligence – Collaborating and tapping into
the core knowledge of all employees, partners, and
customers
• Knowledge management - Involves capturing,
classifying, evaluating, retrieving, and sharing
information assets in a way that provides context for
effective decisions and actions
Collaboration Inside The
Organization
• Knowledge-based assets fall into two
categories
– Explicit knowledge – Consists of anything that can
be documented, achieved, and codified, often with
the help of IT
– Tacit knowledge – Knowledge contained in people’s
heads
Collaboration Outside The
Organization
• Crowdsourcing – the wisdom of the crowd
– Asynchronous communication
– Synchronous communication
• Asynchronous communication such as email
in which the message and the response do
not occur at the same time.
• Synchronous communications that occur at
the same time such as IM or chat.
Networking Communities
With Business 2.0
• Social media – Websites that rely on user participation and
user-contributed content
• Social network – An application that connects people by
matching profile information
• Social networking – The practice of expanding your business
and/or social contacts by a personal network
Social Tagging
• Tags – Specific keywords or phrases incorporated
into website content for means of classification or
taxonomy
– Social tagging
– Folksonomy
– Website bookmark
– Social bookmarking
Business 2.0 Tools
For Collaborating
• Blog – Online journal that allows users to
post their own comments, graphics, and
video
– Microblogging
– Real simple syndication
Business 2.0 Tools
For Collaborating
• Wiki – Collaborative Web page that
allows users to add, remove, and
change content, which can be easily
organization and reorganized as
required
– Network effect – Describes how products
in a network increase in value to users as
the number of users increases
Business 2.0 Tools
For Collaborating
• Mashup – Website or Web application that uses
content from more than one source to create a
completely new product or service
– Application programming interface
– Mashup editor
The Challenges Of Business 2.0
• Technology dependence
• Information vandalism
• Violations of copyright and plagiarism
WEB 3.0
The Next Generation
• Web 3.0 – Based on “intelligent” Web applications using
natural language processing, machine-based learning
and reasoning, and intelligence applications
• Semantic Web – A component of Web 2.0 that describes
things in a way that computers can understand
• Integration of legacy devices, open technologies for
integration, worldwide online database …
INTERNET BASICS
• Web Domain Names and Addresses
– Uniform Resource Locator (URL)
– Common domain extensions
• .edu .org .mil .com .net
• .ca .th .no (country codes)
– IP (Internet Protocol) Addresses
URL / Internet Address example
http://www.csun.edu/~dn58412/is312/Lec312_05.ppt
Protocol
Host name
Account name
Folder name
Document name
The Internet . . .
• Who Manages the Internet?
– The Internet Registry – acts as a central
repository for Internet-related information and
which provides central allocation of network
system identifiers
– Domain Name System (DNS) – a system used to
associate Internet host names with their Internet
IP addresses
– Internet Corporation for Assigned Names and
Numbers (ICANN) – a non-profit corporation
manages IP addresses, domain names, and root
server system management
– InterNIC Registration Service – assigns Internet
addresses
The Internet . . .
• How to connect to the Internet
– Internet Service Providers (ISPs)
– Network Access Points (NAPs)
– Internet Backbone
Internet Network Architecture
ISP
ISP
ISP
ISP
NAP
NAP
ISP
ISP
NAP
NAP
ISP
ISP
ISP
ISP
Internet Backbone
Internet in the U.S.
The Internet . . .
• Internet Connections
– Plain Old Telephone Service (POTS)
– Integrated Services Digital Network (ISDN)
– Digital Subscriber Line (DSL)
– Cable Modems
– Satellite Connections
– T1 Lines
– Asynchronous Transfer Mode (ATM)
The Internet . . .
• Security in the Internet
– Encryption
– Firewalls
– Authentication
The Internet . . .
• Internet Tools
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E-mail
Telnet
File transfer
Listserv
Usenet
Archie
WAIS
– Gopher
– Voice over IP
World Wide Web
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Web browser (Explorer, Firefox, etc…)
Hypertext
Hyperlinks
Hypertext Markup Language (HTML)
Web servers
Hypertext Transfer Protocol (HTTP)
Uniform Resource Locator (URL)
WWW Architecture
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