Download Ch6

Electronic Commerce
and the Internet
Chapter 6
Chapter Objectives
• Describe what the Internet is and how it works
• Explain packet-switching and TCP/IP
• Describe basic Internet services and the
World Wide Web
• Explain the differences between
– Internet-based electronic commerce
– Intranet-based electronic commerce
– Extranet-based electronic commerce
The Internet
• A worldwide network of networks
• Not owned by a single person,
organization, or country
• Internet Society (ISOC): All About The
Internet
• A Brief History of the Internet
Growth in Internet Servers
34.5a
34.5b
12 Most Wired Countries
Top Countries in Internet Use at Year-End 1999
Rank Country
Internet Users (1,000s)
1 U.S.
110,825
2 Japan
18,156
3 U.K.
13,975
4 Canada
13,277
5 Germany
12,285
6 Austrailia
6,837
7 Brazil
6,790
8 China
6,308
9 France
5,696
10 South Korea
5,688
11 Taiwan
4,790
12 Italy
4,745
Source: http://www.c-i-a.com/200103iu.htm
Source: http://www.cybergeography.org/atlas/arpanet1.gif
Source: http://www.cybergeography.org/atlas/arpanet2.gif
September 1971
Source: http://www.cybergeography.org/atlas/arpanet3.gif
ARPANET, October 1980
Source: http://www.cybergeography.org/atlas/arpanet4.gif
Circa 1989
Source: http://www.cybergeography.org/atlas/ansmap.jpg
http://www.cs.bell-labs.com/who/ches/map/gallery/wired.gif
What You Will Find
on the Internet
• Information
– Text, video, audio, graphics
– Databases, technical services, software
• People
– Electronic mail
– Newsgroups
How Does the Internet Work?
• Packet-Switching Technology
• Connecting Independent Networks
• TCP/IP
Packet-Switching Technology
• Data sent in small standard sized
chunks called “packets”
• Packets have headers with addresses
of sending and receiving computers
• Users take turns sending packets
• Packets reassembled by the receiver
Packet Switching
Connecting Independent
Networks
• Router: fundamental building block of the
Internet
– Has a processor, memory, and network
interface
– Has no software
– Connects LANs to backbone WANs
– Forwards packets from one network to another
– Determines best routes for packets to travel
TCP/IP
• Transmission Control Protocol
– Breaks information into data packets
– Reassembles packets when received
– Checks for lost packets
• Internet Protocol
– Each computer given a unique IP address
– User name and IP address separated by @
• [email protected]
Routers Enable Different
Paths between Networks
Technologies Enabling
Internet Communication
• ISDN (Integrated Services Digital Network)
– International standard for digital data communications
– Uses existing twisted pair cable
• T1 Service
– Leased lines from long-distance carriers
• ATM (Asynchronous Transfer Mode)
– Method of transmitting voice, video, and data over high
speed LANs
Services on the Internet
• E-Mail
– BBC News | DOT LIFE | H@ppy
birthday to you
– Los Angeles Times: E-Mail Capability
Changes Lives of Sailors Far Away
– The Core Rules of Netiquette
Other Services on the Internet
• Telnet
• File Transfer
Protocol (FTP)
• Listserv
•
•
•
•
Usenet
Archie
WAIS
Gopher
The World Wide Web
• The most powerful Internet tool
• Accessed via a Browser
– A simple user-friendly interface
Web pages
– Identified by a URL (Uniform Resource
Locator)
• http://www.w3.org/Addressing/Addressing.html
– Created with Hypertext Markup Language
• Dave Raggett's Introduction to HTML
• The Bare Bones Guide to HTML
20M -
Total Number of Web Servers as of 8/00
10M -
Apache
Source: Netcraft
Microsoft
iPlanet
Other
eBusiness: Electronic Business
• Dell Computers lets customers configure
their own PCs online and track assembly and
shipping status.
• Trucking companies will tap directly into
ordering system for earlier visibility on
shipping schedules.
• Retailers & manufacturers will monitor
inventory databases instead of placing orders
through sales.
eBusiness
• Pfizer, Inc. sends electronic version of drug
applications to FDA: approval timetable ~ one
year  6 months.
• Intel, Inc.: 200 sales clerks from order entry
to data analysis & customer relations.
• Cisco Systems: 75% sales are online; 45%
of the orders never touch an employee's
hands.
• Ford: international collaboration on the Web
~ “design chain management .“
XML: A Simple Example
<customer-details id="AcPharm39156">
<name>Acme Pharmaceuticals
Co.</name> <address country="US">
<street>7301 Smokey
Boulevard</street>
<city>Smallville</city>
<state>Indiana</state>
<postal>94571</postal> </address>
</customer-details>
Source: Short Overview of W3C, XML, and RDF - slide "XML: A Simple Example"
A Model of Electronic
Commerce
A Model of Electronic Commerce
Information
Gathering
Ordering
Payment
Fulfillment
Service
and Support
Supply Chains
• “… one of the most loudly trumpeted
keys to eBusiness success”, and
• “eBusiness is perhaps the most
sweeping transformation of the
corporate landscape in decades.”
--Business Week
• Supply chains  Supply web
SUPPLY “CHAINS”
Suppliers
Manufacturer
Warehouses
Retailers
Consumers
Information Goods:
•
•
•
•
•
•
•
Goods and services that can be totally digitized:
migrating from atoms to bits.
Internet services
• stock quotes
sport scores
• financial services
books
• Web pages
data bases
• technical publishing
(legal, engineering)
magazines
• travel services
movies
• online education
music
Products
Material
Information
Steel, Cement
Automotive
Consumer Goods
Office Eqpt
Books, Magazines
Newspapers
Music CD’s
Videos
[from U. Karmarkar, 2000]
Services
Restaurants
Retailing
Construction
On-line Data
Television
Education
Consulting
Information Goods
• Costly to produce but cheap to reproduce.
• They do not need to be inventoried.
• Once the first copy has been produced, most
costs are “sunk” and cannot be recovered.
• Multiple copies can be produced at roughly
the constant per unit cost.
• There are no capacity limits for additional
“copies.”