Electronic Commerce

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Electronic Commerce

• "Any sufficiently advanced technology is
  indistinguishable from magic."
• -Arthur C. Clarke

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What is Electronic Commerce?

• Technology-mediated exchanges between parties
  (individuals or organizations) as well as the
  electronically based intra- and
  inter-organizational activities that facilitate
  such exchanges
• Rayport and Jaworski, 2001

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In the beginning...
MAINFRAME
Dumb Terminals
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Then came the PC...
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Local Area Networks (LANs)
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Why not connect branches around the country?
College Park, MD
Seattle, WA
gateway
gateway
gateway
gateway
Albany, NY
New Haven, CT
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Why not link the world?
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And so it came to be...

• The Internet
• a global network of networks connecting millions
  of users
• networks connected via gateways
• standard grammar (or protocol) for communicating
  with one another (TCP/IP)
• common addressing system (URL)
• most commonly used for email

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URLs

• Need to keep the computers straight
• Each assigned a unique IP address
• Example 151.118.43.18
• Four sets of octets
• Can take values between 0 and 255
• IP addresses stored as domain names for easy
  recall
• Domain Name Server maintains the mapping between
  IP address and domain name

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The Internet What does it look like?

• 1985 NSF funded 5 supercomputer centers around
  the country
• Cornell Theory Center, Cornell University
• National Center for Supercomputing Applications
  (NCSA), University of Illinois, Urbana-Champaign
• Pittsburgh Supercomputing Center, University of
  Pittsburgh
• San Diego Supercomputer Center, University of San
  Diego
• Jon von Neumann Center, Princeton University

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The Original Internet

• Five centers linked by 56kbps lines
• Unexpectedly large volumes of traffic
• Not only used for research but also for email and
  file transfers
• 1987 NSF awarded Merit Networks Inc. (Ann Arbor,
  MI) contract to upgrade the NSFnet backbone

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The Original Internet (contd.)

• Merit upgraded the lines to T-1 (1.544 Mbps)
• 8 more nodes added (making 13)
• The purpose of NSFnet now was to interconnect
  these regional networks

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The Original Internet (contd.)

• 1991 The lines interconnecting networks was
  upgraded to T-3 (45 Mbps)
• Over 3500 regional networks were interconnected
• The original 1983 concept of the Internet was
  that of interconnecting networks
• 10 years later, being on the Internet meant
  being connected to the NSFnet backbone

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The New Internet Architecture

• April, 1995 NSF shut down its NSFnet backbone
• Radical new architecture consisting of four
  network access points (NAPs)
• San Francisco (PacBell)
• Chicago (Ameritech and Bellcore)
• New York (Sprint)
• Washington D.C. (Metropolitan Fiber Systems)

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Todays Internet
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WWWhat in the WWWorld is the World Wide Web?
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The World Wide Web (WWW)

• The multimedia arm of the Internet
• WWW is an information system that uses
• the internet
• uniform addressing schemes (URL)
• common grammar (HTTP protocols)
• hypertext (written in a language called HTML)
• web servers
• web browsers

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World Wide Web
Browser client
URL
www.travel.net.br
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What is Electronic Commerce?

• Technology-mediated exchanges between parties
  (individuals or organizations) as well as the
  electronically based intra- and
  inter-organizational activities that facilitate
  such exchanges
• Rayport and Jaworski, 2001

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Ripples
Business Originating From.
Consumer
Business
B2B
C2B
Publisher orders paper supplies from paper
companies
Potter fans band together for bulk purchase from
Amazon
Business
Amazon orders extra copies from publisher
Selling to.
B2C
C2C
Consumers buy thousands of Harry Potter books
from Amazon
Consumers resell Harry Potter books on eBay
Consumer