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THE INTERNET • It began as government connection of universities. • Internet service provider (ISP): Organization that has a permanent connection to the Internet and sells (leases) temporary connections to subscribers. • No one owns it, no formal organization owns it. There is no no formal central control. • It is based on the TCP/IP reference model. INTERNET CAPABILITIES • E -MAIL: person -to-person messaging; document sharing • USERNET NEWSGROUPS: Worldwide discussion groups. People can post messages on any topic on an electronic bulletin boards for discussion groups. • LISTSERVs: If you find any LISTSERV topic interesting, you can subscribe. From then on, you will get all information about this topic through e-mail. • CHATTING: It allows interactive conversations • TELNET: It allows to log on one computer, work on another. • FTP: It allows to transfer files from computer to computer • GOPHERS: It allows user to locate information stored on Internet gopher servers using menus. INTERNET CAPABILITIES • ARCHIE: Search database for files to download. • VERONICA: Veronica is an additional capability for searching gopher sites by using keywords • WIDE AREA INFORMATION SERVICE (WAIS): locates files using key words • WORLD WIDE WEB: retrieve, format, display information (text, audio, graphics, video) using hypertext links INTERNET ADDRESS [email protected] INDIVIDUAL OR ORGANIZATION NAME HOST COMPUTER DOMAIN LOCATION DOMAIN NAME INTERNET TERMS • HOME PAGE: WWW screen display that welcomes the user and explains the organization. • WEB SERVER: Web pages are stored in Web servers. • WEBMASTER: person in charge of Web site • UNIFORM RESOURCE LOCATOR (URL): address of specific Internet resource. Web sites have a unique Internet address (URL). INTERNET TERMS • HYPERTEXT TRANSPORT PROTOCOL (http): communications standard (sets of rules) used to transfer Web pages stored in Web servers. • HYPERTEXT MARKUP LANGUAGE (HTML): popular programming language for creating Web sites SURFING THE NET • SEARCH ENGINE: tool for locating specific sites or information on WWW. Examples: AltaVista & Lycos • HYPERLINK: spot on screen, when clicked shifts to a new page or site. INTRANET • Internal network • WWW technology • Firewall: security system (consists of hardware and software placed between an organization’s internal network and an external network, including the internet) to prevent invasion of private networks. • Overcomes computer platform differences • Often installed on existing network infrastructure EXTRANET • It allows authorized users outside organization to use its intranet. • Authorized users can be: Customers business partners vendors EXTRANET DATABASES CUSTOMER SUPPLIER INTERNET FIREWALL SERVER BUSINESS PARTNER CLIENTS INTERNET BENEFITS • • • • Increases global connectivity Reduces communications cost Lower transaction costs Reduces agency costs, the cost managing employee and coordinating their work • Increases interactivity, flexibility, customization • Accelerates knowledge INTERNET & ELECTRONIC COMMERCE • Easy to link with other businesses, customers. • Can update product information, ordering, customer support • On-line storefronts • Enhances business forms INTERNET & ELECTRONIC COMMERCE • CUSTOMER-CENTERED RETAILING – disintermediation: removal of intermediate layers streamlines process – reduced cost to buyer, seller • HIT: each request for a file recorded in log file INTERNET & ELECTRONIC COMMERCE • DISINTERMEDIATION Cost/Shirt Manufacturer Distributor Manufacturer Distributor Manufacturer Distributor Retailer Retailer Retailer Customer Customer Customer $48.50 $40.34 $20.45 INTERNET BUSINESS MODELS • VIRTUAL STOREFRONT: sells goods, services on-line • MARKETPLACE CONCENTRATOR: concentrates information from several providers • INFORMATION BROKER: provides product, pricing, availability information INTERNET BUSINESS MODELS • TRANSACTION BROKER: buyers view rates, terms from various sources • ELECTRONIC CLEARINGHOUSE: auctionlike setting, products, prices, change in response to demand INTERNET BUSINESS MODELS • DIGITAL PRODUCT DELIVERY: sell, download software, other digital products • CONTENT PROVIDER: creates revenue through providing client for a fee, and advertising • ON-LINE SERVICE PROVIDER: provides service, support for hardware, software products ELECTRONIC COMMERCE SUPPORT SYSTEMS • WEB HOSTING SERVICES: provides large servers for Web sites of fee-paying customer • ELECTRONIC PAYMENT SYSTEM: using Web for electronic funds transfers, credit , smart & debit cards INTRANETS AND ELECTRONIC BUSINESS • • • • • Electronic commerce services Benefits Group collaboration Functional applications Supply chain management ELECTRONIC COMMERCE SERVICES: • ICAT: on-line catalog shopping, order placement (Icat) • NET.COMMERCE: merchant server supporting Secure Electronic Transactions protocol (IBM) • MERCHANT SERVER: templates for storefronts, point-of-sales software (Microsoft) ELECTRONIC COMMERCE SERVICES: • MERCHANT SYSTEM: full set of retailing services (Netscape) • OM-TRANSACT: modular structure for payment schemes (Open Market) • PC-CHARGE: PC-based Web server credit card processing (Go Software) BENEFITS OF INTRANETS: • Increases connectivity • Can be tied to legacy system & transaction processing • Interactive applications with text, audio, video • Scalable to larger or smaller systems as required BENEFITS OF INTRANETS: • • • • Easy to use browser interface Low start-up costs Rich, responsive information environment Reduced information distribution costs GROUP COLLABORATION: • teamware: intranet-based applications allow teams to share ideas, documents, brainstorming, scheduling. similar to chat room. • Internal newsletter • Ability to work at home • Share internet discoveries with colleagues FUNCTIONAL APPLICATIONS: • • • • Finance & accounting Human resources Sales & marketing Manufacturing & production FINANCE & ACCOUNTING: • • • • General ledger reporting Project costing Annual reports Budgeting HUMAN RESOURCES: • • • • • Corporate policies Employee savings plans Benefits enrollment On-line training Job posting SALES & MARKETING: • • • • • Competitor analysis Price updates Promotional campaigns Sales presentations Sales contracts MANUFACTURING & PRODUCTION: • • • • • Quality measurements Maintenance schedules Design specifications Machine output Order tracking SUPPLY-CHAIN MANAGEMENT CUSTOMERS MARKETING & SALES PRODUCTION PLANNING CUSTOMER SERVICE PROCUREMENT INTRANET ACCOUNTING & FINANCE SHIPPING & DISTRIBUTION INVENTORY PRODUCTION & MANUFACTURING CHALLENGES • • • • • • Unproven business models Business process change requirements Channel conflicts Technology hurdles Legal issues Security & privacy