Introduction to the
Internet
Definitions
internet,TCP/IP, protocol, packet
switching, WWW, NAP, Information
Superhighway, B2B, B2C, ASP
The Internet
The World Wide Web (WWW)
Intranets and Extranets
The New Economy
Objectives
1. To describe major characteristics of the
Internet
2. To describe the role of protocols for the
Internet
3. To describe major characteristics of the World
Wide Web
4. To describe major drivers of the Net/Web
5. To describe major models in the New Economy
6. To distinguish between Internet, intranet and
extranet
Objectives: Buyers, Sellers,
and Electronic Markets
1. Be able to describe the major characteristics in
the buyer, seller and electronic market models
of Electronic Commerce
2. Discuss segmentation of electronic distribution
channels
3. Discuss assumptions for electronic marketplace
4. Discuss the impact of e-commerce on
intermediaries
5. Describe the new e-commerce intermediaries
6. Discuss the factors leading to the success of
new intermediaries
The Internet Today
Metanetwork - network made up of
interconnected networks
Hard to shut down (because of
interconnectivity)
Connected around the world via special
computers called routers and hubs
Connected over a grid called the
backbone
Traffic funneled into backbone via network
access points (NAPs)
The Internet Today
A network of networks
Largest decentralized computer network
in the world
Phenomenal growth rate
Internet protocol: TCP/IP (Transmission
Control Protocol/Internet Protocol)
Packet switching (hot potato routing)
Peer-to-peer communications
Traffic funneled into backbone via network
access points (NAPs)
TCP/IP Protocols
Define how data is subdivided into
packets
Provide functionality for productive
networking
Packets: fundamental grouping of data for
transmission on a digital network
Internet Protocol (IP): address space for
internetworks
Transmission Control Protocol (TCP):
packet size
Internet - Early Days
ARPANET (1969) - network connecting
university, military and defense
contractors; funded by Advanced
Research Projects Agency of US Dept. of
Defense
DARPA Internetting project (1973) project to link networks
Internet (1983) - original ARPANET split
into MILNET (for military communications
& CSNET (networking research)
Internet History
NSF backbone connects 6 sites by 56
KBPS data circuits (1987); 13 nodes with
T1 connections (1.5 Mbps)(1988); T3
connections (45 MBPS) (1992)
ARPANET decommissioned (1990)
NSF gets out of backbone business (1993)
and NAPs (private commercial backbone
operators) directly connect to NSFNET at
a series of single points (San Francisco,
Chicago, Washington DC,Pennsauken)
Internet Governance
Not controlled by one body
No Internet police to enforce standards
Internet Society (ISOC)
Professional society
Voluntary organization
Concerned with growth and evolution of
worldwide Internet
Has subgroups
National Science
Foundation (NSF) Policy
NSF footed bill for US backbone
Had Acceptable Usage Policy (AUP)
Relaxed policy in 1991
New policies allow, “announcements of new
products or services for use in research or
instruction, but not advertising of any kind”
Fantastic growth in commercial users and
providers
The Information
Superhighway
Also called the Net or the I-Way
Phrase used by newbies and Gore
High-speed global communications network
Many-to-many vs. one-to-one
communications
Encompasses voice, data, telephony, cable
television, satellite systems
Internet: The Big Picture
http://navigators.com/internet_architecture.html
What is the Web?
World Wide Web, the Web, WWW
A way of looking at the Internet
Adds hypertext capabilities (HTML)
Incorporates multimedia - pictures, text,
animation, sound
Format that is easy to learn and use
Accessed by browsers - Netscape, Mosaic,
Explorer
The WWW Today
Most WWW servers and sites run by
commercial providers
Businesses charged for storage and
throughput
Governments subsidize the Web
Very stable
Number of web sites doubles every 53 days
E-commerce on WWW is rapidly evolving
Driving Forces for
WWW/Net
Change in NSF policies
Convergence of communication-related
industries
Publishing
Entertainment
Computing
Communications
Digitalization: text, documents, graphics,
video, audio
Globalization
Driving Forces (continued)
Virtualization
Increasing competition and cooperation
Critical mass
E-mail
PC’s
Falling cost and improved technology
Computers
Networking
Products
(Millions of Dollars)
P ro d u ct
1997
1999
2001
863
2 ,2 3 4
3 ,7 6 0
654
2 ,8 1 0
7 ,4 4 3
298
1 ,1 4 3
2 ,6 7 8
158
504
1 ,0 8 4
149
413
802
92
245
514
Forrester Research, 1997
Definitions
Intranets - networks using TCP/IP exclusively
within an organization; inaccessible to outsiders
Extranets - A company’s interorganizational
information unavailble to users of its intranet or
to the wider internet community
Value-added networks (VANs)- non-internet
network maintained privately
Virtual private networks (VPNs) -corporate
networks run over the Internet to replace leased
phone lines between offices
Intranet Features
Easy navigation
Accessible to most computing platforms
Can integrate into distributed computing
systems
Scaleable (start small and grow)
Extensible to many media types
Can be tied to legacy systems
Event driven vs. calendar driven
Great for B2E
Value of E-Commerce
“The value of e-commerce transactions
while still small relative to the size of the
economy continues to grow at a
remarkable rate. More significant than
the dollar amount of these transactions
are the new business processes and
models that e-commerce enables.”
Alan Greenspan
Internet Economy
Small but growing at a phenomenal rate
The total US Internet economy more than
doubled between 1996 and 1997 ---$15.5B to
$38.8B
Revenues grew 68% last year: $507B (up $200B
from last year) USA Today10/27/99
Jobs grew from 1.6 million to 2.3 million in 1999
Business to Business (B2B) e-commerce -largest share of the Internet economy
Internet economy is going through stages
Stage 1 (1995-1999): B2C
Websites
$180- $300 billion
Business evolution on Internet (Kosiur)
Publishing
Interactivity
Transactions
Fulfillment settlement workflow
Survey Results: Very
Important for Ideal Site
F e a tu re
Id e a l
Own
S e cu re
78%
50%
F a st
50%
26%
E a sy to n a vig ate
60%
22%
S e rvice -o rie n ted
42%
18%
In te g rate d
28%
17%
In te ra ctive
17%
8%
Lo ca lize d (to la n g u a g e s)
16%
10%
P e rso n alize d
14%
8%
Agenda'99
Stage 2 (now): Business
Transformation - B2B
$1.8 to $3.2 Trillion in 2003
Focus on improving core activities
Dynamic pages
Gateways to legacy systems
IBM Procurement example
maverick buyers vs. economies of scale
30 days to 1 day for generating PO
tell valued suppliers about out-of-line pricing
Total savings (1999): $6 billion
Stage 3 (2000-2005):
Industry Restructuring
Empowers users and providers
New intermediaries
New players
Some disintermediation
Inter and intranet mergers
Focus on transforming and leveraging
Steps in Buyer/Seller
Models
P R E S A LE
S E LLE R S
BUYERS
D istrib u tio n
S e a rch /A sk
fo r p ro d u ct
D isco ve r
p ro d u ct
C o m p a re
p ro d u cts
N e g o tia te
te rm s
P ro m o tio n
D isp la y
P ricin g p o licy
Steps in Buyer/Seller
Models
S E LLE R S
BUYERS
R e ce ive o rd e r
P la ce o rd e r
S A LE A u th o rize p a ym e n t
R e ce ive a ckn o w lg m t
S ch e d u le o rd e r
C o m p a re p ro d u cts
B u ild o r re trie ve
fro m in ve n to ry
S h ip p ro d u ct
R e ce ive p ro d u ct
P O S T R e ce ive p a ym e n t
S A LE S u p p o rt p ro d u cts
M a rke t re se a rch
R e q u e st su p p o rt
G ive fe e d b a ck
Electronic Marketplace
Assumptions
There are many buyers and sellers
none of the buyers or sellers represents a
significant fraction of total demand or supply
The goods or service to be transacted is
homogenous or standardized
doesn’t have standardized or idiosyncratic
features
Buyers and sellers are well-informed
about quality and price
Virtual Marketplace
Principles
Intermediaries can reduce uncertainty of
transaction
Order-of Magnitude factor helps shift
paradigms
Markets will do business with other markets
Virtual marketplace may disrupt/destroy old
value chains and enable new forms of value
Value chains will be extended to explore B2B
relationship/process changes
Electronic Marketplace:
Implications?
Customer-centered
Pricing
Fraud
Quality
Intermediaries
Impact of E-Commerce on
Intermediaries?
Will middlemen be disintermediated in ecommerce environments?
New IntermediariesMarket Makers
Market makers (brokers) -bring buyers
and sellers together
ONSALE
eBay
priceline
Dangers of online auctions
poor quality
overpaying
nondelivery
New Intermediaries Buyer and Seller Agents
Seller agents - make markets more
accessible to providers
Firefly (customer profiles)
Buyer agents - perform search and
evaluation tasks on goods and services for
purchasers (more examples of these
agents)
Amazon.com
Auto-By-Tel
New Intermediaries
Context Providers - help buyers and
sellers by simplifying the virtual terrain
ISPs - America Online
Portals- Yahoo!, Excite
Online communities - GeoCities
Payment enablers -handle purchase
transactions and their related funds
transfers, as well as risk management
CyberCash
Verisign
New Intermediaries Fulfillment specialists
Fulfillment specialists - handles the
transfer and storage of goods and
coordinate allied information, such as the
management of shipping logistics
Fed Ex
UPS
E-commerce has helped their business
Disintermediation
Enables more efficient and effective
interaction between companies and their
end customers
Also called compression
May create problems between established
distributors and online distribution
channels
Disintermediation may be a threat to
some enterprises, but it creates
opportunities for others
Descargar

Definition of Electronic Commerce