Transcript The Internet in Business

Welcome to CMPE003
Personal Computers:
Hardware and
Software
Dr. Chane Fullmer
Fall 2002
UC Santa Cruz
Assignments
Assignment #5 – Due November 8, 2002
 Programming



Edit a Java Script program file
If you want more information about
javascript,

visit http://www.htmlgoodies.com.
http://www.soe.ucsc.edu/classes/cmpe003/Fall02/hw5_javascript.html
October 28, 2002
2
Class Information
 Midterm



Monday – November 4, 2002.
ID required.
Covers Chapters 6 through 10.


Book reading plus lectures.
Multiple choice



#2
Requires Scantron #F-1712-ERI-L (pink)
~50 questions
No makeups after the fact
October 28, 2002
3
The Internet in Business:
Corporations, Businesses, and
Entrepreneurs
Chapter 9
Objectives

Discuss the pervasiveness and inevitability of business on the
Internet

Explain how money factors, especially advertising, affect the
Web

Describe the likely success factors for Web entrepreneurs

Differentiate between business-to-Consumer and Business-toBusiness sites

Explain the importance of Internet transmission speed for
business sites

Differentiate between intranets, extranets and virtual private
networks
October 28, 2002
5
E-Commerce
Electronic Commerce
Buying and selling over the Internet
October 28, 2002
6
E-Commerce
Retail Sites
Retail becomes etail
October 28, 2002
7
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!
October 28, 2002
8
Etail
Advantage to Consumer






Any time shopping
No need to dress and
travel – shop naked!!
Saves time
Provides simple means
to comparison-shop
Anyplace
Contributes to
competition
October 28, 2002
9
Etail
Savings to retail business
No physical store building
People time
October 28, 2002
10
The Commerce Site

Lists and views of products and prices

Content

Product related

Updated regularly

Written to interest visitors in returning to site to
purchase in the future
October 28, 2002
11
Commerce vs. Content Sites



Commerce adding content
Content adding products and sales information
Division is no longer clear
October 28, 2002
12
E-Commerce Acceptance


Opposition to e-Commerce by in-person
sales representatives
Strategy to merge Etail and Retail



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
October 28, 2002
13
E-Commerce Acceptance
Successful web site may alienate others
October 28, 2002
14
Promoting a Web Site


Users must find their way to the site
Advertising needed


Traditional ads on web pages
Portals
October 28, 2002
15
Portals



Definition – entry point to the rest of the
Internet
Presents content and links to variety of
topics
Customize the content



User provides personal data
Portal provides related information and links
Can become your home page
October 28, 2002
16
Portals
Earning Money


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
October 28, 2002
17
Portals
Who Are They?
Yahoo!
MSN
Snap!
Excite
Netscape
Go Network
America
Online
Search engines that expanded their content
and retail connections
October 28, 2002
18
Advertising
Pay a fee to the host site
 Disadvantage of online Ads



Contain graphics and applets that load
slowly
Ads load first
October 28, 2002
19
Advertising
Types of Online Ads

Banner ads



Live banner
•
•
•
•

Clickable
Users reluctant to click through
Displays sales pitch
User does not need to leave current site
Work slowly
Expensive to develop
Context-sensitive


Ad is related to subject matter on web page
Greater click through and conversion
October 28, 2002
20
Web-based Business



Simple to start-up of new businesses
Provides access to people and global markets
Minimum investment



Server link
Home page
Competition


Not a level playing field
Large advertising budgets of large companies “get
the word out”
October 28, 2002
21
Web-based Business



Make business
look large
Many products
can be offered
since no
inventory
No physical
space to reflect
size
October 28, 2002
22
Payments

Finalize order by





Phone
Fax
Call with credit card number
Enter credit card number
Security


Communication between buyer and retailer is
encrypted
Use SSL (Secure Sockets Layer) protocol and
generate the message “our secure server”
October 28, 2002
23
Taxes
American Federal Law


Taxes due only on mail-orders within your
state
Actual ‘presence’ of etail is debatable
October 28, 2002
24
Taxes
Internet Tax Freedom Act – 1998

Provisions







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
October 28, 2002
25
Success Factors
Making a Profit

Content




What you have to say
and offer
Cannot be static
News about product,
scores, contest, searches
Uniqueness



Not offered elsewhere
Difficult to obtain
Self-help





Search for product
Order product
Check the status of an
order
Track a delivery
Community



Provide sense of
community
Sharing between visitors
Prizes
Repeat business needed
October 28, 2002
26
B2C
Business-to-Consumer



Activity between business and individual
User makes purchase based upon personal
decisions
Growing



$38 billion in 1998
Over $800 billion by 2005
Global trend – more than ½ online sales will
be outside US by 2004
October 28, 2002
27
B2B
Business-to-Business


Activity of one business providing another with
materials and supplies
Advantages to buyers



Problems



Reduced costs of procurement
Consider a larger number of suppliers
Security
Antitrust concerns
Growing


$92 billion in 1998
$2 trillion in 2004
October 28, 2002
28
Internet Speed
Traffic



Not planned for current use
Victim of its own success
Original Internet




Low-speed
Text-based
Limited sites
Today’s Internet



100’s of Million of users
Downloading high-volume multimedia data
Causes slow transmission speeds

Congestion on the links…
October 28, 2002
29
Internet Speed
Impacts Business


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
October 28, 2002
30
Internet Speed
Solutions

Increase bandwidth





Increase backbone capacity




Satellite
ISDN
DSL
Cable modem
Backbone – communication lines across geographical areas
Advances in technology
Investment in new facilities
Change Internet access fees
October 28, 2002
31
Streaming

Hear and see digitized content as it is
downloaded




Uses substantial bandwidth



Audio
Video
Animation
Quality of content
 Speed of connection
 Internet traffic
Performance will improve as bandwidth improves
Content is displayed using Plug-ins
October 28, 2002
32
Streaming
RealPlayer


Free download from
RealNetworks
Broadcast.com


Live radio
Canned television
shows
October 28, 2002
33
Sharing Files
Unicasting


Send multiple computers copies of files
individually
Wastes bandwidth as you are sending the
same file over and over
October 28, 2002
34
Sharing Files

Broadcast




Send one copy of the file to every
computer on the network
Wasteful – some users do not need the file
Compromises security
Multicasting

Send one copy of the file and it is directed
only to the appropriate recipients
October 28, 2002
35
Push Technology
Webcasting


Software that sends (pushes) information
from the Internet to a user’s PC
Makes business active participants in
providing information to users
October 28, 2002
36
Push Technology
How it Works
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

October 28, 2002
37
Push Technology
Good or Bad?


Time-saver for user; no browsing required
Uses precious bandwidth to send graphics
and advertising

Excellent candidate for multicasting
October 28, 2002
38
Intranets
Internal network
 Private to a certain company
 Easy and fast to setup
 Inexpensive

October 28, 2002
39
Intranet
Setting it Up
Same components as needed for Internet
Computers for access
Server
TCP/IP
Software including a browser
October 28, 2002
40
Intranet
Web Pages for Employee Use
Personnel data
 Internal job posting
 Corporate policy information
 Available training courses
 Cafeteria menu
 Notices from management

October 28, 2002
41
Intranet, Internet, Extranet

Internet


Intranet



Public
Private
Can be linked to Internet
Extranet


Provide access to Intranet to selected customer
and suppliers
Replacing EDI
October 28, 2002
42
VPN
Virtual Private Networks


Use public Internet as a channel for private
data communication
Use the Internet to access the company
network rather than private lines


Sharing public lines
Lower cost
October 28, 2002
43
VPN
Benefits





Lower operating costs
Simplifies communications
No 800 lines and long distance charges
Reduces in-house management
responsibilities
Communication needs handled by ISP
October 28, 2002
44
VPN
Technology

Tunneling / encapsulation




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


Packets are encrypted before encapsulation
Authentication software used
October 28, 2002
45
Consolidation of the Web

Consolidation brings efficiency and uniformity




Occurring quickly
Large scale
1999 AOL purchased Netscape
Conglomerates “moving in” will control the
majority of what we see
October 28, 2002
46
October 28, 2002
47