Chap07 The internet , Intranets and Extranets

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
•Email
•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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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

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•Web portal
–Limited space and design control
•Electronic Storefront
–Cybermall
•Web Hosting Service
•Virtual Web Server
•Subdomain

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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

Chap07 The internet , Intranets and Extranets

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