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Internet and E-Commerce History of the Internet Components of the Internet Transmission Control Protocol (TCP) Transport-layer protocol that most Internet applications use with IP Backbone One of the Internet’s high-speed, long-distance communications links Uniform Resource Locator (URL) An assigned address on the Internet for each computer Domain Name System IP addresses are difficult to remember and use With DNS, users can employ alphanumeric names that are easy to remember, such as www.cpe.eng.cmu.ac.th Domain Name System (Contd.) .com (for commercial businesses) .org (for nonprofit organizations) .edu (for educational institutions) .gov (for the U.S. government) .mil (for the U.S. military) .net (for networks) .int (for international entities) Domain Name System (Contd.) Internet Corporation for Assigned Names and Numbers (ICANN) Responsible for managing IP addresses and Internet domain names Has authority to resolve domain name disputes Cyber-squatters Register domain names in the hope of selling them to corporations or people Uniform Resource Locators A string of characters associated with a specific information resource, such as www.google.com, www.cmu.ac.th, and so on Many URLs relate to Web access via HTTP, but note that URLs also apply to many other Internet protocols and information resources Instead of “http,” the first part of a URL could include “ftp” for File Transfer Protocol, “news” for Usenet news, or other Internet resource types Uniform Resource Locators (Contd.) How the Internet Works? Internet Open Issues The Internet has been accompanied by a host of economic and social policy questions: Should online sales be taxed? Should voice services that use Internet telephony (VoIP) be regulated and taxed, like other more traditional services? How might a major Internet outage or cyberterrorist attack affect nations economically? Internet Open Issues (Contd.) Some countries restrict or prohibit Internet access for political or religious reasons Whose laws should apply, and how should they apply to a network that transcends national boundaries? In what ways will the Internet intersect with politics? What are the ramifications of the international digital divide, in which some countries have widespread Internet access and computing resources, and others have limited resources? Case Study: The 2014 Leak Scandal Source of pictures iCloud Security flaw Find My iPhone How? The application allows users to input password as many times as they want The hacker(s) used “brute force” password hacking Results Private pictures from at least 21 celebrity, hundreds of pictures, more than 500MB in size total (and still growing), are now spread on the Internet Internet Application The World Wide Web Collection of tens of millions of server computers that work together as one in an Internet Hyperlink Highlighted text or graphics in a Web document that, when clicked, opens a new Web page Web browser Web client software such as Internet Explorer, Firefox, Safari, Opera, and Google Chrome used to view Web pages The World Wide Web (Contd.) Hypertext Markup Language (HTML) Standard page description language for Web pages HTML tags Let the browser know how to format text Extensible Markup Language (XML) Markup language for Web documents containing structured information Cascading Style Sheet (CSS) File or portion of an HTML file that defines the visual appearance of content in a Web page Web Programming Languages Java HTML5 Other platforms Asynchronous JavaScript and XML (AJAX) Hypertext Preprocessor (PHP) Adobe Flash, Microsoft Silverlight, IBM Worklight Sample HTML5 Websites The Wilderness Downtown http://www.thewildernessdowntown.com/ Heart of the Attic http://heartofthearctic.ca/ Three Dreams of Black http://www.ro.me/ Enjoy Your Privacy http://www.enjoyyourprivacy.com/ Google Play Music Tour http://play.google.com/about/music/tour/ Source: http://www.ebizmba.com/articles/best-html5-websites Content Management Systems An emerging technology to help customizing web sites Joomla Wordpress Drupal Content Management Systems (Contd.) Internet and Web Applications Search engines and Web research Search engines Have become important to businesses as a tool to drive visitors to the business’ Web site Search Engine Optimization (SEO) has become a valuable marketing tool Real-time search will be a future for search engines Sample Services from Google Services What It Does Code Tools and resources for developers Docs Cloud office Images Search for images on the web Maps View maps and get directions News News stories Translate Language translation Scholar Search through academic articles Shopping Find the best deal on consumer products E-Mail Text messages Sound, images & videos Files Instant Messaging Online, real-time communication between two or more people who are connected to the Internet Can share files and other activities Instant Expressions and Abbreviations Expressions ;-) ;-( :-# :-D :-0 :-@ :-& orz Abbreviations AFK BRB BTW IMHO LOL OIC TY OMGWTFBYOBBQ InW Leet Language Also known as “leetspeak” It uses various combinations of ASCII characters to replace letters. 1f u c4n r34d th1s u r3411y n33d t0 g37 141d Internet Phone and Videoconferencing Services Internet phone service Relatively inexpensive, especially for international calls Voice-over-IP (VoIP) technology Network managers can route phone calls and fax transmissions over the same network they use for data Internet videoconferencing Supports both voice and visual communications Skype Google Hangout Social Networks Facebook, Google+ Social networking platform Social application Authentication system Media sharing PR, CRM & Advertising Twitter News sharing PR, CRM & Advertising Facebook Google+ Twitter Source: Google Ad Planner (2010) Age Distribution on Social Network Media Sharing YouTube Video sharing Marketing Instagram, Flickr, Shutterfly Photo sharing Getty Images, Shutterstock Photo stocking YouTube Flickr Shutterstock File Sharing Allow people to share files in P2P mod Bittorent Bittorent Social Bookmarking Purpose To provide a view of the most popular Web sites, videos, blog articles, or other Web content at any given moment Popular social bookmarking sites delicious.com Digg delicious.com Digg Web Auctions Web auction A way to connect buyers and sellers eBay Popular auction site Easy to use and includes thousands of products and services in many categories Auction sites Cannot always determine whether the people and companies listing products and services are legitimate eBay Music, Radio, Video, and TV on the Internet Radio broadcasts are now available on the Internet Video and TV are also becoming available Internet Protocol Television (IPTV) protocol Used to put TV programming on the Internet Office on the Web Internet office Web site that contains files, phone numbers, email addresses, an appointment calendar, and more Allows your desktop computer, phone books, appointment schedulers, and other important information to be with you wherever you are Google Drive Internet Storage Allow users to store, retrieve and manipulate files in the “cloud”. Popular internet storages Dropbox SugarSync http://dl.dropbox.com/u/1621542/03%20%20Internet%20and%20E-Commerce.ppt Dropbox Wikis A wiki is a website that allows the easy creation and editing of any number of interlinked Web pages WYSIWYG Wikipedia Global Internet Traffic Online Language Populations Using Internet for Business Process Improvement Marketing Manufacturing Investment and finance Internet for BPI: Marketing Market segmentation Identification of specific markets to target them with advertising messages Technology-enabled relationship management Use of detailed information about a customer’s behavior, preferences, needs, and buying patterns to customize the entire relationship with that customer Internet for BPI : Manufacturing Electronic exchange Electronic forum where manufacturers, suppliers, and competitors buy and sell goods, trade market information, and run back-office operations Business center is not a physical building but a network-based location where business interactions occur Internet for BPI : Investment and Finance The Internet Has revolutionized the world of investment and finance Electronic bill presentment Eliminates all paper, down to the bill itself e-Commerce Electronic Commerce Conducting business activities electronically over computer networks Business activities that are strong candidates for conversion to e-commerce Paper based Time-consuming Inconvenient for customers Traditional VS Online Commerce Source: http://www.cirrusabs.com Benefits of e-Commerce Increase sales and profits Decrease costs Expand the size of the market Increase productivity Improve customer services Market equity Accessibility to market Modes of e-Commerce B2B B2C C2C Business-to-Business (B2B) e-Commerce Subset of e-commerce All the participants are organizations Useful tool for connecting business partners in a virtual supply chain to cut resupply times and reduce costs Business-to-Consumer (B2C) e-Commerce Form of e-commerce in which customers deal directly with an organization and avoid intermediaries Disintermediation The elimination of intermediate organizations between the producer and the consumer Consumer-to-Consumer (C2C) eCommerce Subset of e-commerce that involves consumers selling directly to other consumers Popular sites Bidzcom, Craigslist, eBid ePier, Ibidfree, Ubid, and Tradus Highly popular among college students e-Government Use of information and communications technology to Simplify the sharing of information Speed formerly paper-based processes Improve the relationship between citizen and government e-Government (Contd.) Forms of e-Government Government-to-consumer (G2C) Government-to-business (G2B) Government-to-government (G2G) Government-to-employee (G2E) Example of e-Government applications e-Auction UN e-Government Survey 2014 e-Government Development Index 2014 (2012) 1. South Korea (1) 2. Australia (12) 3. Singapore (10) 4. France (6) 5. Netherlands (2) 6. Japan (18) 7. USA (5) 21. Germany (17) 70. China (78) 95. Philippines (88) 99. Viet Nam (83) 102. Thailand (92) 106. Indonesia (97) 118. India (124) 152. Laos (153) 139. Cambodia (155) Based on: Scope and quality of online services Telecommunication connectivity Human capacity Customer Relationship Management Involves managing every aspect of an organization’s interactions with its customers or clients including Marketing and advertising Sales Customer service after the sale Programs to retain loyal customers e-Commerce Challenges Defining an effective e-commerce model and strategy Dealing with consumer privacy concerns Overcoming consumers’ lack of trust Security of transactions Global Challenges for e-Commerce Cultural challenges Language challenges Time and distance challenges Infrastructure challenges Currency challenges Product and service challenges State, regional, and national laws Technical Limitations Costs of a technological solution Unfamiliar protocols Reliability Insufficient bandwidth Evolution of software tools Limitation of internet accessibility Some Preliminary Cautions for e-Commerce Unrealistic expectations Inappropriate application Incomplete installation Establishing an E-Commerce Strategies for Successful E-Commerce Companies must develop effective Web sites that include the following characteristics: Easy to use Accomplish the goals of the company Safe and secure Affordable to set up and maintain High accessibility Defining the Web Site Functions Decide which tasks the site must accomplish Create an attractive presence for the company Meet the needs of its visitors Example: Obtaining information about the organization and its products Redefining your site’s basic business model to capture new business opportunities Establishing a Web Site Web site hosting companies Allow you to set up a Web page and conduct ecommerce within a matter of days Little up-front cost Storefront broker Company that acts as an intermediary between your Web site and online merchants who have the products and retail expertise Building Traffic to Your Web Site Obtain and register a domain name Make your site search-engine-friendly Include a meta tag in your store’s home page Use Web site traffic data analysis software Provide quality, keyword-rich content Customer Behaviour The way people find products & information Links from other sites 88% Search engines 82% Printed media 63% Word of mouth 58% Email 48% Newsgroups 32% Television 32% Books 28% Source: Marketing Sherpa, 2005 Search Engine Statistics Source: ClickyMedia, http://www.clicky.co.uk/, 2014 Search Engine Attraction Techniques Put keywords on your page title <TITLE> Put and bold keywords on your content <B> Name and describe your pictures <ALT> Create a site map Avoid the use of flash Avoid the use of frameset Encourage link exchange Source: www.seo.in.th Top Global Internet Browsers Source: Softpedia, Jan 2014 Maintaining and Improving Your Web Site Personalization Tailoring Web pages to specifically target individual consumers Explicit personalization Captures user-provided information Implicit personalization Captures data from customer Web sessions Hardware Storage capacity and computing power required of the Web server depends on: Software that will run on the server Volume of e-commerce transactions Key decision facing new e-commerce companies Whether to host their own Web site or to let someone else do it Web Server Software Security and identification Retrieving and sending Web pages Web site tracking Web site development Web page construction e-Commerce Software Catalog management Product configuration Shopping cart Web services Electronic Payment Systems Digital certificate Attachment to an e-mail message or data embedded in a Web site that verifies the identity of a sender or Web site Certificate authority (CA) Trusted third-party organization or company that issues digital certificates Secure Sockets Layer (SSL) Electronic cash Credit, charge, debit, and smart cards Payments using cell phones Advertising Banner Stands out to the users Usually positioned at the top middle of the page Most expensive Sidebar Able to put details Positioned at the left or right of the page Pop-up and Floating Ads Force users to click to close the ads Users often misclick and forced to open the link Advertising (Contd.) Warm Warm Cold Navigation Bar Hot Warm Hot Hot Hot Primary Content Warm Cold Warm Warm Page Footer Cold Advertising: tarad.com Advertising: manager.co.th Banner Size A1 (728x90 Pixels) Baht/Week Baht/Month Impression only A2 (728x90 Pixels) 30,000 108,000 B1 (300x250 Pixels) 60,000 216,000 B2 (300x250 Pixels) 55,000 198,000 B3 (300x250 Pixels) 55,000 198,000 B4 (300x250 Pixels) 55,000 198,000 C1 (180x150 Pixels) 30,000 108,000 C2 (180x150 Pixels) 25,000 90,000 C3 (180x150 Pixels) 20,000 72,000 C4 (180x150 Pixels) 20,000 72,000 D (300x110 Pixels) 60,000 216,000 Advertising: bloggang.com Advertising: dek-d.com Pay Per Click An Internet advertising model used on search engines, advertising networks, and content sites Advertisers typically bid on keyword phrases relevant to their target market Pay Per Click (Contd.) PPC search engines Ask.com Baidu.com Business.com Google Looksmart MSN/Live Search (Microsoft adCenter) Yahoo! (Yahoo! Search Marketing) Google Ads Google AdWords For advertisers The advertisers are charged only if someone clicks the ad, not when the ad is displayed Activation fee: 200.00 Baht Minimum cost per click (CPC): 0.35 Baht Minimum cost per thousand impressions (CPM): 10.00 Baht Google Ads (Contd.) Google AdSense For site owners Display targeted Google ads on the web pages and earn from valid clicks or impressions Available for contents, search, mobile content, feeds, video, domains, and mobile applications Earnings: CPC ads: Site owners earn when the users click on the ads CPM ads: Site owners earn when the ad appears to a user viewing the site Web Statistics Collect information Visitors, time of visits, time spent, origins, browsers, etc Shape the business strategies Web Statistics (Contd.) Google Analytics Executive summary E-commerce summary Conversion summary Marketing summary Content summary Marketing optimisation Content optimisation In-Class Assignment Creative Thinking Form into a group of 5 persons Discuss how can the following emerging information technology be used to improve supply chain management and logistics Cloud computing Augmented reality Social networking Five minutes presentation