The Internet and E-Commerce

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The Internet and E-Commerce

• Chapter 1

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The Dell Situation

• 50 million-a-day online distribution channel
• Equivalent to five Amazon.coms
• Using channels to market other products

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What do you think???

• Is Dell, as an e-business, running any
  differently than a traditional bricks-and-mortar
  business?

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History Lesson

• 1454
• German Inventor Johann Gutenberg develops the
  printing press
• 1800
• Alessandro Volta develops the first batteries
• 1876
• Alexander Graham Bell files patent application
  for the first telephone

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History Lesson

• 1908
• Henry Ford introduces the Model T
• 1969
• July 20, Neil Armstrong relays the first message
  from the moon
• 1972
• Larry Roberts writes the first e-mail management
  program to list, read and receive messages

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The Internet

• Internet
• A global network of computers, communication
  tools, and information resources
• Where is the Internet located?

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Where it all began

• Advanced Research Projects Agency (ARPA)
• A segment of the U.S. Department of Defense
• Developed ARPANET - 1969
• Connected 4 major computers
• Stanford
• Univ. of California at LA
• Univ. of California at Santa Barbara
• Univ. of Utah
• Originally developed to allow ongoing
  communication in the event of a nuclear war

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The child begins to grow

• By 1973
• Expanded to dozens of universities
• Over 2,000 users
• First International connection
• University College in London
• Royal Establishment in Norway

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Growth Spurt

• 1980s
• Internet expands beyond the original purpose as a
  research and scientific resource
• Commercial activity increases

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Maturity

• Today
• File sharing and discussions among educational
  and research institutions
• Businesses
• Government organizations internationally
• Over 170 million users in the US
• 544 Million users globally

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Ground Control to Major Tom

• Why controls the Internet?
• There is no one authority that controls the
  Internet.
• Governing groups comprised of companies,
  governments, and individuals work together to
  define new technologies and how to implement them

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Internet anatomy

• Internet Technology
• Transfer documents
• View graphical files
• Log on to remote computers
• Participate in virtual discussions

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TCP/IP ???

• Transmission Control Protocol / Internet Protocol
• The common language or protocol through which
  systems communicate on the Internet
• The translator that allows all applications and
  devices to speak the same language

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TCP/IP

• Two-layer program
• Transmission Control Protocol
• Manages the assembling of messages or files into
  smaller packets that are transmitted over the
  Internet and received by a TCP layer that
  reassembles the packets into the original
  messages or files
• Internet Protocol
• Handles the address part of each packet to ensure
  it reaches the correct destination

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World Wide Web

• A uniform organizational structure was needed
  before the Internet could become as big and
  sophisticated as it is today
• The WWW went live in 1991 bringing structure and
  organization to the boundless information
  available online
• The Web is the most widely used segment of the
  Internet

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WWW or Internet

• The two terms are NOT interchangeable
• The Internet is the global system of networks
  that supports the collection of resources known
  as the World Wide Web

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Pickup or Delivery???

• Web Browser
• A program such as Safari, Internet Explorer or
  Firefox that is used to view, surf, download or
  access Web documents
• Hypertext Transfer Protocol (HTTP or http//)
• The language that moves hypertext files across
  the Internet and defines the rules for
  transferring those files
• May include, text, graphic images, sound video
  and other multimedia

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Its all Greek to Me

• Web browsers read pages coded in a standard
  language such as
• Hypertext Markup Language (HTML)
• This language uses tags to structure text into
  headings, paragraphs and links.
• Standard language for a Web browser

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Whats the address?

• Millions of computers, each with its own
  identification
• Internet Protocol or IP address attached to each
  computer
• Domain Name
• Used in replacement of IP address
• Addressing scheme employing words and phrases to
  identify and locate computers on the Internet

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Its you domain

• Uniform Resource Locator (URL)
• Indicates the address of a Web site
• Two Parts
• Hypertext Transfer Protocol
• Domain or server
• Suffix
• Identifies the category of a Web site

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Most commonly used domain name extensions
Extension Type of Organization Example
.edu Educational Institutions albany.edu Univ. of Albany
.com Commercial Entities homedepot.com The Home Depot
.org Nonprofit organizations redcross.org American red Cross
.net Internet administrative entities earthlink.net EarthLink Internet service provider
.gov Government sites census.gov U.S. Census Bureau
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The demise of the USPS?

• E-Mail
• Electronic mail
• Quickly becoming the preferred method of
  communication throughout the world
• FTP
• File Transfer Protocol
• Allows a user to obtain files over the Internet

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Pop Quiz hot shot

1. Who monitors the operations of the Internet
2. What is a Web browser and what does it do?
3. What can you tell about a site from the domain
   name?
4. What is ARPANET, who created it, and what was its
   original purpose?

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Connecting to, Searching, and Using the Internet
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ISPs and Web Hosting Services

• Internet Service Provider (ISP)
• A company that provides other companies or
  individuals with access to or a presence on the
  Internet
• Web host providers
• Allow customers to house their Web-site documents
  on the companys servers

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ISPs

• Over 7,000 Worldwide
• More than 60 are US Companies
• Choosing an ISP
• Reliable service
• Type of connection needed

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Getting Connected

• Dial-up Connections
• Most commonly used when the Internet first became
  accessible to the public
• Uses an analog modem to transmit computer
  (digital) data over phone lines
• Pros
• Available to more people
• Cons
• Slower speeds
• Phone not available during use

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Broadband Connections

• Digital Subscriber Line (DSL)
• Provided by phone company
• Operates over standard phone lines
• Pros
• 10 times faster than standard dial-up modem
• Phone line still available during use
• Cons
• More expensive
• Availability limited in some areas
• Also known as a T line

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Broadband Connections

• Cable Modem Service
• Requires Cable modem and network interface
• Pros
• Faster speeds
• Higher quality audio/video streaming quality
• Cons
• More expensive
• Limited availability in some areas

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Broadband Connections

• Integrated Services Digital Network (ISDN)
• Oldest form of Broadband
• Operates over phone lines and fiber optic circuts
• Pros
• 4-times faster than dial-up
• Most reliable
• Cons
• Can cost up to 100 per month

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Broadband Connections

• Satellite Broadband Connection
• Uses a satellite to transfer data through a dish
  or antenna at home or in a business
• Pros
• Available in more rural areas
• 10 to 20 times faster than dial-up
• Cons
• Expensive
• More equipment

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Wireless Internet

• Wireless Internet
• Uses radio waves to transmit data
• Ranges of several hundred feet indoors to ten
  mile outdoors
• Wireless Internet Service Providers (WISP)
• Examples Boingo and Pronto
• Offer wireless Internet access to the public

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Search Engines

• The phonebooks of the Internet
• Use key words to access lists of documents
  containing the key words
• Search Tips

Symbol Function Example
Finds pages with all words NPRcar talk
-- Finds first key word, but not second Dreamweaver-XM 2004
Find a specific phrase Colorado River Rafting
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Search Tools

• Internet Directory
• A comprehensive listing of Web sites
• Examples Yahoo and MSN
• Crawler-based Search Engine
• Use an automated computer programs to scan
  Internet databases in search of new or revised
  Web pages
• Example Google

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Pop Quiz Part Deux

1. Why would someone choose a cable modem over a
   dial-up connection?
2. Where can you find a Wireless ISP? How can you
   access one?
3. Why would you use the more heavily trafficked
   search engines?
4. Name and describe the two types of Internet
   search tools.

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Finally, eCommerce
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It all goes back to Fundamentals

• Buying something new?
• How do you make your decisions?
• Electronic Commerce (eCommerce)
• The conducting of business and communication
  transactions by electronic means.
• This makes it possible to save time and in most
  cases, save money.

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Say What?

• Simply put
• eCommerce refers to purchases made from online
  stores, also referred to as virtual or cyber
  stores.
• Examples
• Buying a book from Amazon
• Lowes purchases power tools through the
  manufacturers web site
• You participate in an online auction

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Evolution

• Electronic Communication
• Samuel F.B. Morse
• 1866
• 1960s
• Satellite Transmissions
• 1991
• National Science Foundation lifted restrictions
  on commercial use of the Internet

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Evolution

• e-Commerce is to the Information Revolution what
  the railroad was to the Industrial Revolution.
• -Peter F. Drucker

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Characteristics of e-Commerce

• Transcends geographic boundaries
• Levels the playing field
• Provides avenues for new methods of advertising,
  selling, and distribution
• Example A custom jewelry maker in Ireland can
  now sell to customers in the U.S.

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Characteristics of e-commerce

• Many businesses have developed an online presence
  
• Bricks-and-Mortar Business
• A business with an actual physical location or
  storefront
• Multichannel Retailer
• A retailer that sells its products via
  traditional channels as well as online

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Characteristics of e-Commerce

• Pure-play retailers
• Sell primarily through the internet

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Why so popular?

• Companies reported increases in sales in the
  hundreds of percents after taking their business
  online.
• e-Commerce is the fastest growing form of
  commerce in the world
• Major changes in
• Markets
• Industries
• Individual businesses
• Society

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Purpose of e-Commerce

• Basic goal reach and transact customers using
  electronic means.
• Supplement revenues
• Increase product recognition
• Reach new customers
• Increase efficiency
• Transmitting orders
• Transaction processing
• Payment processing
• Communication with customers on order status

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Pop quiz 3 ½

1. How can the introductory and permeation stages of
   the computer revolution be differentiated?
2. How has e-Commerce changed business?
3. What jobs have been created by e-Commerce?