Welcome to CMPE003 Personal Computers: Hardware and Software

1. Welcome toCMPE003Personal Computers: Hardware and Software Dr. Chane Fullmer Fall 2002 UC Santa Cruz

2. Assignments • Assignment #5 – Due November 8, 2002 • Programming • Edit a Java Script program file • If you want more information about javascript, • visit http://www.htmlgoodies.com. http://www.soe.ucsc.edu/classes/cmpe003/Fall02/hw5_javascript.html

3. Class Information • Midterm #2 • Monday – November 4, 2002. • ID required. • Covers Chapters 6 through 10. • Book reading plus lectures. • Multiple choice • Requires Scantron #F-1712-ERI-L (pink) • ~50 questions • No makeups after the fact

4. The Internet in Business:Corporations, Businesses, and Entrepreneurs Chapter 9

5. Objectives • Discuss the pervasiveness and inevitability of business on the Internet • Explain how money factors, especially advertising, affect the Web • Describe the likely success factors for Web entrepreneurs • Differentiate between business-to-Consumer and Business-to-Business sites • Explain the importance of Internet transmission speed for business sites • Differentiate between intranets, extranets and virtual private networks

6. E-Commerce Electronic Commerce Buying and selling over the Internet

7. E-CommerceRetail Sites Retail becomes etail

8. Clothes Out-of-print biography Used car Bargain airline tickets Music CDs Videos Baby equipment Jewelry Sporting goods Office supplies Cosmetics Flowers Gifts Groceries E-CommerceRetail Sites What’s for Sale? EVERYTHING!

9. EtailAdvantage to Consumer • Any time shopping • No need to dress and travel – shop naked!! • Saves time • Provides simple means to comparison-shop • Anyplace • Contributes to competition

10. EtailSavings to retail business No physical store building People time

11. The Commerce Site • Lists and views of products and prices • Content • Product related • Updated regularly • Written to interest visitors in returning to site to purchase in the future

12. Commerce vs. Content Sites • Commerce adding content • Content adding products and sales information • Division is no longer clear

13. E-Commerce Acceptance • Opposition to e-Commerce by in-person sales representatives • Strategy to merge Etail and Retail • Web site prices may be higher • Commission to sales representative on each Internet transaction regardless of their involvement with its origin • Web site marketing followed by local store purchase

14. E-Commerce Acceptance Successful web site may alienate others

15. Promoting a Web Site • Users must find their way to the site • Advertising needed • Traditional ads on web pages • Portals

16. Portals • Definition – entry point to the rest of the Internet • Presents content and links to variety of topics • Customize the content • User provides personal data • Portal provides related information and links • Can become your home page

17. PortalsEarning Money • Flat fee to be listed on portal based upon number of visitors to the site • Percentage of sale generated by a visitor who traveled to the affiliate via the portal

18. Yahoo! MSN Snap! Excite Netscape Go Network America Online PortalsWho Are They? Search engines that expanded their content and retail connections

19. Advertising • Pay a fee to the host site • Disadvantage of online Ads • Contain graphics and applets that load slowly • Ads load first

20. AdvertisingTypes of Online Ads • Banner ads • Clickable • Users reluctant to click through • Live banner • Displays sales pitch • User does not need to leave current site • Work slowly • Expensive to develop • Context-sensitive • Ad is related to subject matter on web page • Greater click through and conversion

21. Web-based Business • Simple to start-up of new businesses • Provides access to people and global markets • Minimum investment • Server link • Home page • Competition • Not a level playing field • Large advertising budgets of large companies “get the word out”

22. Web-based Business • Make business look large • Many products can be offered since no inventory • No physical space to reflect size

23. Payments • Finalize order by • Phone • Fax • Call with credit card number • Enter credit card number • Security • Communication between buyer and retailer is encrypted • Use SSL (Secure Sockets Layer) protocol and generate the message “our secure server”

24. Taxes American Federal Law • Taxes due only on mail-orders within your state • Actual ‘presence’ of etail is debatable

25. Taxes Internet Tax Freedom Act – 1998 • Provisions • No tax on Internet access charges • No new tax on out-of-state businesses (insures that presence is not redefined) • Creates temporary commission to study Internet taxes • Demand that foreign governments keep Internet free of taxes and tariffs • Free of taxes for three years • Can impose same tax regulations as phone or mail order • Provisions extended through 2005

26. Content What you have to say and offer Cannot be static News about product, scores, contest, searches Uniqueness Not offered elsewhere Difficult to obtain Self-help Search for product Order product Check the status of an order Track a delivery Community Provide sense of community Sharing between visitors Prizes Success FactorsMaking a Profit Repeat business needed

27. B2CBusiness-to-Consumer • Activity between business and individual • User makes purchase based upon personal decisions • Growing • $38 billion in 1998 • Over $800 billion by 2005 • Global trend – more than ½ online sales will be outside US by 2004

28. B2BBusiness-to-Business • Activity of one business providing another with materials and supplies • Advantages to buyers • Reduced costs of procurement • Consider a larger number of suppliers • Problems • Security • Antitrust concerns • Growing • $92 billion in 1998 • $2 trillion in 2004

29. Internet SpeedTraffic • Not planned for current use • Victim of its own success • Original Internet • Low-speed • Text-based • Limited sites • Today’s Internet • 100’s of Million of users • Downloading high-volume multimedia data • Causes slow transmission speeds • Congestion on the links…

30. Internet SpeedImpacts Business • Large companies use T1 and T3 lines and have servers capable of thousands of concurrent visitors • Smaller business connect via ISP or pay a company with high-speed connections to host their site

31. Internet SpeedSolutions • Increase bandwidth • Satellite • ISDN • DSL • Cable modem • Increase backbone capacity • Backbone – communication lines across geographical areas • Advances in technology • Investment in new facilities • Change Internet access fees

32. Streaming • Hear and see digitized content as it is downloaded • Audio • Video • Animation • Uses substantial bandwidth • Quality of content • Speed of connection • Internet traffic • Performance will improve as bandwidth improves • Content is displayed using Plug-ins

33. StreamingRealPlayer • Free download from RealNetworks • Broadcast.com • Live radio • Canned television shows

34. Sharing Files Unicasting • Send multiple computers copies of files individually • Wastes bandwidth as you are sending the same file over and over

35. Sharing Files • Broadcast • Send one copy of the file to every computer on the network • Wasteful – some users do not need the file • Compromises security • Multicasting • Send one copy of the file and it is directed only to the appropriate recipients

36. Push TechnologyWebcasting • Software that sends (pushes) information from the Internet to a user’s PC • Makes business active participants in providing information to users

37. Push TechnologyHow it Works • User provides consent by downloading and installing free push software • User selects channels to receive • User sets update schedule • Push software goes to the Internet on schedule and downloads updated information for the channels

38. Push TechnologyGood or Bad? • Time-saver for user; no browsing required • Uses precious bandwidth to send graphics and advertising • Excellent candidate for multicasting

39. Intranets • Internal network • Private to a certain company • Easy and fast to setup • Inexpensive

40. IntranetSetting it Up Same components as needed for Internet Computers for access Server TCP/IP Software including a browser

41. IntranetWeb Pages for Employee Use • Personnel data • Internal job posting • Corporate policy information • Available training courses • Cafeteria menu • Notices from management

42. Intranet, Internet, Extranet • Internet • Public • Intranet • Private • Can be linked to Internet • Extranet • Provide access to Intranet to selected customer and suppliers • Replacing EDI

43. VPNVirtual Private Networks • Use public Internet as a channel for private data communication • Use the Internet to access the company network rather than private lines • Sharing public lines • Lower cost

44. VPNBenefits • Lower operating costs • Simplifies communications • No 800 lines and long distance charges • Reduces in-house management responsibilities • Communication needs handled by ISP

45. VPNTechnology • Tunneling / encapsulation • Transfer of data between two similar networks over an intermediate network • Point-to-Point Tunneling Protocol (PPTP) – proposed protocol for tunneling • Encloses packet of one protocol (PPTP) inside packet using different protocol (TCP/IP) • Encryption • Packets are encrypted before encapsulation • Authentication software used

46. Consolidation of the Web • Consolidation brings efficiency and uniformity • Occurring quickly • Large scale • 1999 AOL purchased Netscape • Conglomerates “moving in” will control the majority of what we see

47. Have A Great Day!!