Chap07 The internet , Intranets and Extranets
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Transcript of Chap07 The internet , Intranets and Extranets
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Management Information Systems, 4th Edition
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Chapter 7
E-Commerce: The Internet,
Intranets, and Extranets
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Learning Objectives
• Explain how the Internet functions
• List the features for information exchange that can
be conducted over the World Wide Web
• Explain how the Web facilitates electronic commerce
• Explain basic business models on the Web
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What is the Internet?
• The Development of the Internet
– ARPANET(1950s) was open system designed for the free flow of information, but available only to members of academic institutions and some in the defense industry.
– U.S. government decided to split the network into a civilian one and a military one
• Civilian network became the Internet
– Internet is now a network of networks
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What is the Internet? (Cont.)
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Growth of the Internet (Cont.)
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How the Internet Works
• Definitions
– Uniform Resource Locator (URL)
– Hypertext Transfer Protocol (HTTP)
– Domain Name
– Hypertext Markup Language (HTML)
– Top Level Domain (TLD)
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How the Internet Works (Cont.)
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• IP Number
• Domain Naming System (DNS)
• A domain name is assigned to each IP address
• Domain names are registered by one of a group of
companies authorized to assign unique names
• IP v4 Vs. IPv6 (32bit Vs. 128bit)
Internet Domains
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Internet Domains (Cont.)
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• Static:
– Servers and many other computers and devices are
assigned a permanent IP number
• Dynamic:
– A computer connected to the Internet intermittently
may be assigned a temporary IP number for the
duration of its connection only
Static and Dynamic IP Numbers
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Common Internet Applications
• File Transfer
• Newsgroups and Blogs
• Instant Messaging
• Internet Telephoning
• Web Browsers
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The World Wide Web
• Web Software
– HTML and XML
– Web Page Editors
– Java, JavaScript, and ActiveX
– Web-Application-Interfaces
– VRML
– Cookies
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The World Wide Web (Cont.)
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Intranets and Extranets
– Intranet
• A within-organization computer network that uses Internet technologies to communicate
– Extranet
• Uses Internet technologies to facilitate communication and trade between an organization and its business partners, such as suppliers
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Intranets and Extranets (Cont.)
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Intranets and Extranets (Cont.)
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Intranets and Extranets (Cont.)
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Establishing an E-Commerce
Web Site
• Several Options
1. Installing their own server
2. Contracting with an ISP
3. Contracting with a Web portal
4. Establishing an electronic storefront
5. Contracting with a Web hosting service
6. Using a virtual Web server
7. Setting up a subdomain
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• Dedicated Server
– Expensive option with the greatest degree of
control
– Requires expertise
– Specialists needed maintain the server
• Load balancing transfers visitor inquiries from a
busy server to a less busy server
Establishing an E-Commerce
Web Site (Cont.)
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• ISP Site
– Low-fee or free space for individual or business
Web sites.
– Many small businesses avoid this option
– Can give the appearance that such online
businesses are ephemeral
Establishing an E-Commerce
Web Site (Cont.)
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• Web portal
– Limited space and design control
• Electronic Storefront
– Cybermall
• Web Hosting Service
• Virtual Web Server
• Subdomain
Establishing an E-Commerce
Web Site (Cont.)
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Establishing an E-Commerce
Web Site (Cont.)
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Establishing an E-Commerce
Web Site (Cont.)
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Business-to-Business Trading
• Electronic Data Interchange
• Exchanges and Auctions
• Online Business Alliances
• Application and Storage Service Providers
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• Advertising
– Unique visitors per month
– Unique visitor pages
– Reach percentage
– Banners
Business-to-Consumer Trading
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• E-retailing
– Customer Relationship Management (CRM)
– Consumer Profiling
• Auctions and Reverse Auctions(C2B)
• Content Providers
• Software Sales
• Stock Trading
• Distributed R&D
Business-to-Consumer Trading
(Cont.)
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Business-to-Consumer Trading
(Cont.)
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• Target the right customer
• Own the customer’s total experience
• Personalize the service
• Shorten the business cycle
• Let the customers help themselves
• Be proactive
Rules for Successful Online
Business Transactions
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• Niche Retailing
• Selling Hard-to-obtain information
• Click-and-mortar retailing
• Successful Web Page Design
• E-Government
• M-Commerce
Successful Business Models
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E-Commerce Practices on the
Internet
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E-Commerce is Every Commerce
• Web technologies have been integrated into the
business world
• Information that flows inside an organization
actually uses the Internet segments of intranets
• Businesses not yet on the Internet will eventually
be there
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Online Annoyances
• Spam
• Pop up Windows
• Adware and Spyware
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Summary
• How the Internet functions
• Information exchange over the Internet
• The web facilitates electronic commerce
• Business models on the Web