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Electronic Commerce and the Internet

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

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Electronic Commerce and the Internet

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  1. Electronic Commerceand the Internet Chapter 6

  2. 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

  3. 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

  4. Growth in Internet Servers

  5. 34.5a

  6. 34.5b

  7. 12 Most Wired Countries Source: http://www.c-i-a.com/200103iu.htm

  8. Source: http://www.cybergeography.org/atlas/arpanet1.gif

  9. Source: http://www.cybergeography.org/atlas/arpanet2.gif

  10. September 1971 Source: http://www.cybergeography.org/atlas/arpanet3.gif

  11. ARPANET, October 1980 Source: http://www.cybergeography.org/atlas/arpanet4.gif

  12. Circa 1989 Source: http://www.cybergeography.org/atlas/ansmap.jpg

  13. http://www.cs.bell-labs.com/who/ches/map/gallery/wired.gif

  14. What You Will Findon the Internet • Information • Text, video, audio, graphics • Databases, technical services, software • People • Electronic mail • Newsgroups

  15. How Does the Internet Work? • Packet-Switching Technology • Connecting Independent Networks • TCP/IP

  16. 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

  17. Packet Switching

  18. 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

  19. 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 @ • smith@csulb.edu

  20. Routers Enable Different Paths between Networks

  21. 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

  22. 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

  23. Telnet File Transfer Protocol (FTP) Listserv Usenet Archie WAIS Gopher Other Services on the Internet

  24. The World Wide Web • The most powerful Internet tool • Accessed via a Browser • A simple user-friendly interface

  25. 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

  26. Total Number of Web Servers as of 8/00 20M - 10M - Apache Microsoft iPlanet Other Source: Netcraft

  27. 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.

  28. 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 .“

  29. 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"

  30. A Model of Electronic Commerce A Model of Electronic Commerce Information Service Ordering Payment Fulfillment Gathering and Support

  31. 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

  32. SUPPLY “CHAINS” Suppliers Manufacturer Warehouses Retailers Consumers

  33. Internet services sport scores books data bases magazines movies music stock quotes financial services Web pages technical publishing (legal, engineering) travel services online education Information Goods: Goods and services that can be totally digitized: migrating from atoms to bits.

  34. Products Services Steel, Cement Automotive Consumer Goods Office Eqpt Restaurants Retailing Construction Material Books, Magazines Newspapers Music CD’s Videos On-line Data Television Education Consulting Information [from U. Karmarkar, 2000]

  35. 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.”

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