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7 Chapter 7 The Internet, Intranets, and Extranets Management Information Systems, Second Edition Effy Oz Learning Objectives When you finish this chapter, you will Know what the Internet is. 7 Know the features for information exchange that can be conducted over the World Wide Web. Understand how the Web facilitates electronic commerce. Be able to generate basic ideas for new business ventures utilizing the Web. Appreciate the major risks and limitations of using the Web for business activities. 2 What is the Internet? The Development of the Internet 7 ARPANET was an open system designed for the free flow of information, but available only to members of academic institutions and some of the defense industry. U.S. government decided to split the network into a civilian one and a military one. Civilian network became the Internet Internet is now a network of networks. 3 What is the Internet? 7 Figure 7.1 The Internet connects millions of servers. 4 What is the Internet? Growth of the Internet Number of servers 7 From a few hundred in 1993, to more than 43,000,000 by mid-1999 Number of users More than 200 million; increased rapidly during 1999 Commercial Online Services Companies like America Online provide “online” service to paying subscribers on their private networks. 5 What is the Internet? 7 Figure 7.2 World growth of the Internet 6 What is the Internet? 7 Figure 7.3 The number of Internet domain servers continues to grow 7 Internet Domains A domain name is assigned to each IP number. 7 Internet servers are grouped into different domains. Domain names are registered by one of a group of companies authorized to assign unique names. 8 Internet Domains Figure 7.4 Examples of Internet address suffixes 7 9 Internet Domains What’s on the Internet? E-mail and file transfer 7 News groups Internet Relay Chat (IRC) Telephoning on the Web 10 The World Wide Web Hypertext transfer protocol (HTTP) 7 Allows shared communication of text, fullcolor graphics, tables, forms, video, and animation Hypertext Mark-Up Language (HTML) Code for tagging Web files for display Browsers Software to access the Web 11 The World Wide Web Creating Web Files HTML 7 System of standardized “tags” that format elements text, graphics, and animation Web page editors Translate well-known or intuitive commands into code Java, ActiveX, and XML Web scripting languages Common Gateway Interfaces (CGI) and Forms Allow a computer that is accessing a particular Web site to have some similar functions 12 The World Wide Web 7 Figure 7.5 How a CGI works 13 The World Wide Web Frames Sections of a Web page that let a browser explore a site in different ways on the same page 7 VRML (Virtual Reality Modeling Language) Standard for describing interactive three-dimensional scenes delivered across the Internet Cookies Special file a Web site saves on the surfer’s hard disk so the site can remember something about the surfer later Creating Your Own Web Pages Search the Web for HTML tutorials View and study the source document of a Web page 14 Intranets and Extranets Intranet 7 A within-organization computer network that uses Internet technologies to communicate Extranet Uses Internet technologies to facilitate communication and trade between an organization and its business partners, such as suppliers 15 Intranets and Extranets 7 Figure 7.6 An intranet, an extranet, and the Internet from an individual user’s perspective 16 Intranets and Extranets 7 Figure 7.7 Internet, intranet, and extranet potential for productivity enhancement 17 Intranets 7 Figure 7.8 Savings resulting from the Internet, intranet, and extranet e-commerce 18 Establishing a Web Site Site Name 7 Points of Presence Line Capacity Site Maintenance 19 Establishing a Web Site 7 Figure 7.9 Transfer times of a 10-MB file by different media 20 Business on the Internet Business-to-Business Trading 7 Electronic Data Interchange Exchanges and Auctions E-catalogs 21 Business on the Internet Business-to-Consumer Trading Advertising 7 Portals Free Internet applications E-Shopping E-Payment Auctions and reverse auctions Selling content Selling software Data push Stock trading for all 22 Business on the Internet 7 Figure 7.10 Web-shopping benefits 23 Business on the Internet Web Demographics 7 Figure 7.11 Estimated unique visitors to individual Web sites during 8/09/99-8/15/99 24 Business Considerations Web Costs 7 The least costly sites are those constructed simply to showcase the company’s products or services. The most expensive sites are those designed to enable electronic commerce. 25 Business Considerations 7 Figure 7.12 The average cost to a company offering a Web site for electronic commerce 26 Business Considerations 7 Figure 7.13 Do’s and Don’ts in Web site construction for commercial purposes 27 Business Considerations Risks to Organizations 7 Computer viruses Interception of passwords and codes by an unauthorized hacker Interception of charge account numbers Illegal or socially objectionable use of a site Potential misrepresentation Risks to Consumers Eavesdropping and interception Misrepresentation 28 The Nations: Who is on the Net? 7 While the U.S. is leading in developing new technologies for the Net, other nations are not far behind. Finland has the highest ratio of Internet servers to users. Israeli companies are heavily involved in developing high-quality Internet phone software. Singapore’s government has invested over $2 billion in state-of-the-art technology infrastructure. 29 The Nations: Who is on the Net? 7 Finland U.S. Australia Canada Netherlands Singapore Britain Germany Israel Hong Kong 25 50 60 70 90 125 130 180 185 310 Japan Taiwan South Africa South Korea Brazil Thailand Indonesia China India 470 850 930 1,550 8,000 15,000 87,000 561,000 1,200,000 Source: Network Wizards; Killen & Associates, 1997. Figure 7.14 The number of citizens per Internet server around the world 30 Ethical and Societal Issues Road Bumps on the Electronic Superhighway Free Speech 7 From the advent of the Web, ‘inappropriate’ material has been posted and disseminated throughout the world. There have been calls to sensor what is transmitted, especially pornography, violence, and racial slurs. Spamming Flooding a party’s e-mail box with messages as a means of protest is disruptive. 31