Download Chapter 6. Contemporary Information Systems Issues

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
• Uses a common protocol to
communicate
• Not owned by a single person,
organization, or country
Growth in Internet Servers
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
Internet Services
The World Wide Web
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
Internet Services
• E-Mail
• 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)
– Created with Hypertext Markup Language
– Use hypertext to link to other pages
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
Electronic Commerce
• The on-line exchange of goods,
services, and money
• It has no geographical or time
limitations
• EDI available for over a decade
• Internet based transactions overtaking
EDI
A Model of Electronic
Commerce
Three Modes of Electronic
Commerce
Exploiting Internet-based
Electronic Commerce
• New rules of electronic commerce
– Web site must be aesthetically pleasing
– Web site must be easy to use and fast
– Web site must motivate people to visit,
stay, and return
– Advertise your presence on the Web
– Learn from your Web site
Intranets as First Step into
Electronic Commerce
• Using the Internet for internal operations
• Unwanted users blocked from entry
• Reasons for popularity
– Provides inexpensive, quick, international
telecommunications infrastructure
– Improves product/service quality and
decreases costs and cycle time
– Is a wise intermediate step in preparing for
full electronic commerce
From EDI to Internet-based
Extranets
• Using the Internet to support dealings
with other firms
• Trend toward Extranets rather than EDI