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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.)
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.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
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;-)
;-(
:-#
:-D
:-0
:-@
:-&
orz
 Abbreviations
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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+
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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
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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
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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
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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
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Cultural challenges
Language challenges
Time and distance challenges
Infrastructure challenges
Currency challenges
Product and service challenges
State, regional, and national laws
Technical Limitations
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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:
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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
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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
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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
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Security and identification
Retrieving and sending Web pages
Web site tracking
Web site development
Web page construction
e-Commerce Software
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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
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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
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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
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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