Managing Telecommunications and Electronic Commerce

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Managing Telecommunications and Electronic
Commerce
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Telecom System Components
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Communication System Components

• Signals
• Channels
• Computers/Processors
• Data Com Software

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Telecommunications Media
Satellite
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Trends in Telecommunications
More vendors, carriers, alliances, and
telecommunications network services
Industry Trends
More interconnected local and global digital
networks and improved transmission channels
Technology Trends
More collaborative computing, online
business operations via telecommunications
networks
Application Trends
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Future of Telecom

• Organizations use a hybrid collection of networks
• Scope of networks is broader
• Internet2 coming!
• Wireless and cable technology will continue to
  expand
• bottleneck at consumers house will be broken
• Phone, PC, and TV convergence
• note BroadCom chips

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Evolving PC, TV, and Phone Relationships
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Internet2 (I2)

• Collaborative effort of 120 schools to develop
  next generation Internet technology and
  applications.
• Goal is to enhance not replace current Internet
  infrastructure
• Coalition of government, education, and
  commercial sectors
• Some project members are already communicating
  using I2 technology

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Increase in Bandwidth Helps

• 1. Content
• Movies
• TV shows
• Shopping
• Entertainment
• Data Information
• Educational Programming

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Bandwidth Implications

• 2. Data Compression Storage
• Content must be digitized
• 1 movie 100 GB
• and compressed for storage
• 4 GB (approx. 9.3 MB/sec)

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Internet Growth
How big is the Internet?

• Internet 1980 - 200 computers
• Internet 1998
• 100 million people in 194 countries
• 15 million US households
• 33,000 new users each day 75/month growth
• predicted to be 1Billion by 2005

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Internet Growth

• Internet traffic the number of bytes
  transmitted from one Internet host computer to
  another.
• Terabyte 1,000,000,000,000 bytes
• Exabyte a quintillion (10 18) bytes
• NOTE Internet traffic exceeded 100 terabytes a
  week by 1997.

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Internet Technology
How does data travel over the Internet?
The Internet backbone in the US provides many
pathways for data .
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Internet Technology
How does data travel over the Internet?
The ISP connects to the Internet backbone
Your computer establishes a dialup connection to
an ISP
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URLs
Whats the difference between a domain name and a
URL?
Components of a URL
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Internet Mail
How does Internet e-mail reach its destination?
Components of an Internet mail address
Page 8-8
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• Streaming media sends a small segment of media
  file to your computer and begins to play it. Your
  computer plays a media file while continuing to
  receive it.
• In-place multimedia technology plays a media
  element as a seamless part of a Web page.
• Multimedia overlay technology adds a separate
  window to the current Web page where multimedia
  elements appear.

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Internet Multimedia
In-place multimedia technology
An animated GIF runs in place as part of a Web
page.
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Multimedia overlay technology
Some multimedia plays in a window that overlays
the Web page.
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• Media player a software program that provides
  you with controls to start, stop, and rewind
  media segments
• Plug-in or viewer a software module that adds a
  specific feature to a system or browser
  examples
• Acrobat Reader
• Shockwave
• Real Audio -see text description of start-up
• VoxChat
• Cool Talk

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Push and Pull

• Pull technology used to request information
  from Web pages and pull them into view.
• Push technology used to send information that
  was not directly requested from a Web site to
  users.
• Examples include personalized newspapers and
  Webcasts.

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Push and Pull
Pushed information usually appears in a scrolling
box.
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Interorganizational System (IOS)

• Transcend boundaries of the firm
• Automated teller machines
• Online reordering systems
• Customer reservation systems

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IOS Interaction

• One to one
• buyer seller system
• reorder system
• One to many
• marketing or purchasing system
• AMTRAK CRS
• GM parts acquisition

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Interaction

• Many to Many
• electronic marketplace
• AHS and Sabre evolved into this type of
  interaction
• The Web is a special case of M-M IOS

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Levels of IOS Control

• Data control
• enter and receive data
• one way or interactive
• Process control
• integration of inventory management with reorder
  system
• Network control
• manage the network for others to use
• MAC
• Compuserve network for SABRE

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How Do We Transform the Value Chain with
E-Commerce?
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How Do We Apply the 5-Force Model in E-Commerce?
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Innovative Uses of the Web

• Pioneer new business and personal services
• Blend unique new technologies, such as Java
  applets or VRML 3-D
• Provide new experiences
• Make the world smaller
• Bring people together to form e-communities

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Examples Retail

• On-line shopping Cybermalls
• Internet Shopping Network (www.isn.com)
• largest internet mall for computers
• more than 35,000 products
• Brandpoint (www.brandpoint.com)
• over 500 retailers, catalogs manufacturers and
  services
• Onsale Inc. (www.onsale.com)
• online silent auction, of computers, as a
  game-like experience
• attracts about 750,000 visitors each week

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Examples Retail (cont.)

• On-line shopping Others
• WebLocator (www.comsortium.com/weblocator.html)
• interactive chain store location service
• Virtual Vineyards (www.virtualvin.com)
• online buying service for fine wines and gourmet
  food
• Amazon.Com Inc. (www.amazon.com)
• online database of over 1.1 million book titles

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Examples Shipping

• Federal Express (www.fedex.com)
• allows users to
• arrange package pickup
• track delivery status
• order merchandise online
• request free shipping and tracking software

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Examples Banking

• Wells Fargo Bank (wellsfargo.com)
• view account balances and history
• transfer funds between accounts
• set up auto bill payment
• review upcoming scheduled payments to make
  changes or cancel
• send money anywhere in the US

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Examples Banking (cont.)

• Security First Network Bank (www.sfnb.com)
• individual checking account transactions
• purchase CDs
• open moneymarket accounts
• open joint checking accounts

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Examples Insurance

• InsureMarket (www.insuremarket.com)
• information and quotes
• interactive support to select insurance
• e.g., customer shopping for auto insurance
• probability of theft
• injury rates
• cost, etc.

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Examples Investment Services

• Stock, bond, and mutual fund trading
• ETrade Securities Inc. (www.etrade.com)
• Charles Schwab Corp. (www.eschwab.com)
• Lombard Brokerage (www.lombard.com)
• Investors SuperSite (www.wallstreetcity.com)
• stock and mutual fund information, w/
  interactive, customizable stock ticker (written
  in Java)
• Quote.com (www.quote.com)
• real-time financial market data, business news,
  etc.

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Examples Entertainment and Education

• Distance Learning
• University of Phoenix Online Campus
  (www.uophx.edu/online/)
• Louisiana College (www.lacollege.edu/lconline.html
  )
• Microsoft Online Institute (MOLI)
• IBMs Global Campus program

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Examples Travel

• Internet Travel Network (www.itn.net)
• unique feature
• users build and email a travel profile
• email response when requirements are met
• generates 7 hits per second
• MapQuest (www.mapquest.com)
• search engine to locate any map of the world
• Preview Vacations (www.vacations.com)
• live video of travel destinations, including
  virtual reality tours

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Lessons from Cases

• Build internal capabilities
• AHS, AA, GEIS
• Penetrate quickly and leverage community
• RealNetworks, Yahoo, Intuit
• Note Life event internet portal strategies
• Exploit value of information
• reusable
• time-valued
• customizable
• create new or enhance old products

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Lessons from Internet Securities

• Evolving Information Arbitrage Strategy
• Information Broker
• Content Specialist
• E-Market Facilitator