Kip Becker, Ph.D.Kip Becker, Ph.D.

Boston UniversityBoston University

Introduction to the World Wide WebIntroduction to the World Wide Web

GOGLOBAL@BU.EDUHTTP://WWW.BU.EDU/GOGLOBAL

EE--commerce Interactionscommerce Interactions Technology: Development and mastery of

digital computing and communications technology

Business: New technologies present businesses and entrepreneurs with new ways of organizing production and transacting business

Society: Intellectual property, individual privacy, and public policy

Consumers RuleConsumers Rule Information cost low Information cost low Information AvailableInformation Available Compete in real time rather than in Compete in real time rather than in ““cycle timecycle time”” Operate in a world characterized by low barriers Operate in a world characterized by low barriers

to entry, nearto entry, near--zero variable costs of operation zero variable costs of operation and shifting competitionand shifting competition

Large is no longer scaryLarge is no longer scary

WHAT ARE SOME NEW WHAT ARE SOME NEW ECONOMYCONCEPTSECONOMYCONCEPTS

ANYWHERE - ANYTIME

WEBONOMICS

Technology-mediated exchanges between parties

Electronically-based intra- or inter-organizational activities that facilitate such exchanges

LETS TAKE A LOOK AT DIFERENT ATTRIBUTES

IS EBUSINESS A BRIDGE IS EBUSINESS A BRIDGE FROM OLD WAY OF FROM OLD WAY OF

BUSINESS TO NEW OR BUSINESS TO NEW OR JUST ANOTHER TOOL?JUST ANOTHER TOOL?

IN GROUPS

ECommerce Transaction typesECommerce Transaction types business -to- business business -to- customer business - to - government Individual - to- government Customer -to- business Customer -to- customer Peer -to- peer

P2P HAS HAD ACCEPTANCE P2P HAS HAD ACCEPTANCE PROBLEMSPROBLEMS

Legitimated VS. Pirated music sales, 2006Legitimated VS. Pirated music sales, 2006

Pirated 40%

Legitimate 60%

A VERY BRIEF HISTORYA VERY BRIEF HISTORY• Internet’s beginnings traced to memos written in 1962

MIT’s Joseph Carl Robnett Licklider outlining the galactic networking conceptgalactic networking concept

• Great advances made in network technology 1960s

• To connect computers &permit transfer of information locally, many organizations installed Local Area Networks. LAN technology limited distance

• To allow computers and networks separated by larger distance to communicate ARPA (Advanced Research Projects Agency) developed a Wide Area Network (WAN) called the ARPANET

• (WHY DO THIS ?)WHY DO THIS ?)

THE WEB PROGRESSES 1989–1991: Web “invented” - Tim Berners-

Lee at CERN

1993: Marc Andreesen /Others at NCSA create Mosaic, Web browser with GUI that runs on Windows, Macintosh, or Unix

1994: Andreessen, Jim Clark found Netscape; create first commercial Web browser, Netscape Navigator

August 1995: Microsoft introduces Internet Explorer, its version of Web browser

Lets take a look at some of the early players

Communication Formats similar Development WWWCommunication Formats similar Development WWW• Like internet radioradio began as communication medium

Really the first WWW• Early medium known as wireless telegraphy/ telephony; radio’s

point-to-point wireless messaging ARMY CONTROL• Demand for radio broadcasting surged in 1922 - shifted from a

point-to-point communication tool to broadcast medium

• During 1920s, all 48 states in the US had at least one radio station• By 1925, 27 of the original 48 stations were out of business

• Revenue sources such as programming subsides from radio-set sales, radio taxes, generalized goodwill for corporate sponsors and advertising emerged as new revenue generation models

• The pay for service revenue model allowed radio to compete with telegraph and cut the price of telegraph by 30% FAMILIAR ?

BUT THEN WHAT HAPPENED?

2

Radio Stations Opened and Closed, 1921-24

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25

50

75

100

21-Sep 22-Feb 22-Jul 22-Dec 23-May 23-Oct 24-Mar 24-Aug

Stations OpenedStations Closed

Source: Hanson, Ward. “The Original WWW: Web Lessons from the Early Days of Radio. 7/15/96.

1912 Titanic WW1 US Navy rights to airwaves

1919 RCA - Revenue Model

1922 576 stations - open to all - By 1925?

NOT ONLY THE DOT COM’S HAD DIFFICULTIES

IN 90S The Web Got Ahead of ItselfIN 90S The Web Got Ahead of Itself

BUT first quarter of 2001, online sales only about 1 percent of all retail sales

WHAT ARE SOME REASONS why Americans weren’t ready to do more Web business:

– Poor service and high prices

– Too much to choose from

– Inconsistent technology

NETWORKS TO NETWORKSOR

ORGANIZED CHAOS

THE INTERNETINFRASTRUCTURE

Who Runs It?How does it Run?

DIGITAL INFRASTRUCTURE

If you were to design a system thatIf you were to design a system thatallows computers to interrelateallows computers to interrelate

What is necessary?What is necessary?Infrastructure?Infrastructure?

Communications?Communications?

1. A global networked environment is known as the

2. A counterpart within organizations, is called an

3. An extends intranets so that they can be accessed by business partners.

EC CONNECTIONS EC CONNECTIONS

– Is INTERNET and W3 same thing?

Internet

Intranetextranet

– Electronic data interchange (EDI)over Value Added Networks (VANs)

– Electronic funds transfer (EFT)– Integrated messaging systems– Electronically-supported supply chain

management

Even Local Small Business (NPR _ farmers)

Interorganizational Systems

E-commerce Revenue--- Traditional EDI and Internet -- Actual and Forecast

0

5000

10000

15000

20000

25000

30000

35000

40000

1997 1998 E 1999 E 2000 E 2001 E 2002 E

Electronic CommerceProfessionalServices

Internet CommerceApps

EDI Softw are andServices

What are Characteristics allow shared access of data What are Characteristics allow shared access of data 1. Unique identification each computer

network of millions of computers - thousands networks.. Important each computer be uniquely identifiedInternet Protocol(IP) address. 198.108.95.145

2. Human-friendly addressingDomain Name System(DNS) gave address recognizable letters & words instead of IP address. http://www.bu.edu/GoGlobal

3. Packet SwitchingRemedy delays associated unequally sized data transfers, instead of transferring files in their entirety, whole files broken into data packets before transferred over network

4. RoutingDedicated, special-purpose computers which serve as an intermediary between networks. Route packets efficiently through networks and are building blocks of the internet. Packets used TCP software insures safe delivery of packets

TCP StandardizationTCP Standardization

Networking technologies are not inherently compatible.Before the development of internetworking technology an organization with networks had two options:

• One Alternative- allow groups to have network technology best suited to them, which was not flexible

• Other alternative – have a standardnerdsoninternet

ONE OF THE MOST IMPORTANT PROTOCOLS ONE OF THE MOST IMPORTANT PROTOCOLS

TCP/IP TCP/IP Solves the global internetworking problemSolves the global internetworking problem

Transmission Control Protocol (TCP)– Ensures that 2 computers can communicate with

one another in a reliable fashion

Internet Protocol (IP)– Formats the packets and assigns addresses

packets are labeled with the addresses of the sending and receiving computers

Functions of TCP/IPFunctions of TCP/IP

• Prevents loss of data• Checks packets• Eliminates duplicate packets• Sends confirmation when the packet is received• If confirmation is not received, then the packet is

retransmitted• Enables reliable and error-free communication

over the net

Internet ProtocolsInternet Protocols Protocols - A set of rules that determine how two computersA set of rules that determine how two computers

communicate with one another over a networkcommunicate with one another over a network– The protocols embody a series of design principles

InterInter--operableoperable— the system supports computers and software from different vendors. For e-commerce this means that the customers or businessesare not required to buy specific systems in order to conduct business.

LayeredLayered— the collection of Internet protocols work in layers with each layer building on the layers at lower levels.

SimpleSimple— each of the layers in the architecture provides only a few functions or operations. This means that application programmers are hidden from the complexities of the underlying hardware.

EndEnd--toto--EndEnd— the Internet is based on “end-to-end” protocols. This means that the interpretation of the data happens at the application layer and not at the network layers. It’s much like the post office.

NETWORK OF NETWORKSNETWORK OF NETWORKSWHAT CONSITITUTES THE NETWORKS?WHAT CONSITITUTES THE NETWORKS?

NSPs– “BACKBONE” NETWORK SERVICE PROVIDERS\ MCI, PSINET ETC.

NAPs– NETWORK ACCESS POINTS/ PACIFIC BELL NAP IN

SANFRANCISCO & AMERITEC NAP CHICAGO ISPs

– INTERNET SERVICE PROVIDERS– EXCHANGE DATA NSPs AT NAPs

ROUTERS MAPS TO INTERNET FOR PACKETS TO FOLLOW/ CISCO MAJOR

PROVIDER OF HIGH SPEED ROUTERS

Internet Network ArchitectureInternet Network Architecture

NAP

NAPNAP

NAP

ISP

ISPISP

ISP

ISP ISP

ISP

ISP

ISP

ISP

you

BackboneNSPs

5

2001: Jan 30 Egypt lost 70% + 2001: Jan 30 Egypt lost 70% + ½½ western western India's outbound crashed downing India's outbound crashed downing outsourcing industry. 75m from Algeria to outsourcing industry. 75m from Algeria to Bangladesh disrupted or cut off. Feb 1 Cable Bangladesh disrupted or cut off. Feb 1 Cable cut west of Dubai Middle East service again cut west of Dubai Middle East service again severly disrupted.severly disrupted.

Warriors of the WEB

RELAX, TAKE A BREAK RELAX, TAKE A BREAK