The document provides an overview of the internet, intranets, and extranets, detailing their definitions, uses, and differences. It discusses technologies such as HTTP, FTP, RSS, and various applications including blogging, podcasting, and instant messaging. Additionally, it explains e-commerce types and practices, particularly focusing on B2B and B2C interactions, highlighting their market impact and technological support.

1. 1

2. Basic Definitions of Internet

3. What Is the Internet?
 The vast collection of computer networks which form
and act as a single huge network for transport of data
and messages across distances which can be anywhere
from the same office to anywhere in the world.

4. 4
Use of the Internet

6. Web Technologies
• HTTP
• HTML and XML
• File transfer protocol (FTP)
• RSS
• Blogs
• Podcasting
• Instant messaging
• Cookies
• Proprietary technologies
6

7. HTTP &HTML
• Hypertext Transfer Protocol (HTTP) is the protocol used to transfer and
download Web information.
– Uniform Resource Locator (URL) is a literal address given to a Web
server that corresponds to the IP address
– http://www.uhs.edu.pk/index.php
• Hypertext Markup Language (HTML) is the language for creating Web
pages viewable with a Web browser. HTML determines the look and
structure of Web pages.
– HTML
• <font size =“2”>Oz enterprises, Ltd.</font>
• <b>610-555-1234</b>
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8. FTP, RSS, and Blogs
 FTP (file transfer protocol) is a common way of transmitting files from one
computer to another. You use this when you download files are attach
files to an email.
 RSS (rich site summary) An RSS service is installed on a site to enable
users to check updates to the site. Users can also instruct a Web site with
RSS to automatically send new information (often used on news
Websites).
 A blog (contraction of “Web log”) is a Web page that invites visitors to
post opinions and images on a particular topic. Blogs usually have links
to sites of interest.
 Advertising
 Market research
 Sample blog sites
 www.commonsenseblog.org
 www.diabetesblognetwork.com
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9. Podcasting and Instant Messaging
• Podcasting is like blogging but enables users to post sound on a Web site
so that people can download it.
– Users can subscribe to a podcast site that uses RSS and be notified of
new audio files
– Files are usually in an MP3 format.
• Instant messaging (IM) is a service that offers users the ability to
determine whether other persons using the service are online. Users
can do this in groups (chat rooms) or with one person. Some
applications permit video conferencing and FTP.
– AOL Instant Messenger, MSN Messenger
– Viber, WhatsApp, Skype, Facebook messenger, Yahoo Messenger
9

10. Cookies
• Cookies
– Small files a Web site places on a visitor's hard
drive so the site can retrieve information later
– Cookie contains a unique identifier and data
collected from prior visits
• Spyware includes cookies and other techniques that
are installed on your computer unbeknownst to you
that transmit information about you while you are
online.
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11. 11
The Intranets
Intranet is corporate LAN and/or Wide Area Network
(WAN) that is secured behind company’s firewalls and it
uses Internet technologies. Although intranets are
developed using the same TCP/IP protocol as the
Internet, they operate as private networks with limited
access. Only employees who are issued passwords and
access codes are able to use them. So, intranets are
limited to information pertinent to the company and
contain exclusive and often proprietary and sensitive
information. Firewalls protect intranets from
unauthorized outside access.

12. Public/External
Internet Users
Intranet
Clients
Servers
ERP
Legacy
systems
E-mail
servers
Web
servers
Databases
Firewalls
12
The Intranet (cont.)

13. Intranets
 An intranet is a computer network within an organization
that uses Internet technologies for members of the
organization only
 If a company has an existing network, than establishing an
intranet is very inexpensive. All that is required is the server
software and browsers for clients.
 Most of the technologies mentioned earlier are all available
at no charge
13

14. Information Most Frequently Found in
Corporate Intranets
• Customer databases
• Corporate policies and procedures
• Corporate phone directories
• Human resource forms
• Training programs
• Product catalogs and manuals
• Data warehouse and decision support access
• Internal purchase orders
• Travel reservations
• Knowledge management databases
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15. Functional Applications of
the Intranet Idea
15

16. Extranets
• An extranet is similar to an intranet but it enables the firm’s
business partners (e.g., suppliers or customers) to access
the firm’s intranet
• Once an organization links its network to the Internet
theoretically anyone can access the firm’s network. With
respect to an extranet, firms want to restrict access to
business partners. A virtual private network provides the
security mechanism for accomplishing this. A VPN uses a
combination of public and private lines to build a secure
extranet. The link between the firm’s network and the
Internet is often called a “tunnel.” A VPN provides a secure
tunnel.
• VPNs are also required for firms with extensive intranets
(multi-site firms)
16

17. Extranet Applications
• Managing the supply chain
• Collaborating with other organizations in the development
of new products/services
• Sharing product catalogs exclusively with wholesalers
• Sharing news and other information of shared interest
exclusively with business partners (e.g., production
schedules, forecasts)
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18. Tunneling Internet
Extranet
Intranet
Firewall
Intranet
Firewall
18
The Extranet (cont.)
Suppliers
VPN
Distributors VPN
Customers
VPN

19. Enterprise
Consumers
Suppliers
Clients
Business Partners
Distributors
VPN
Internet
Intranet
Extranet
Intranet
Intranet
Intranet
Intranet
VPN VPN
VPN
VPN
Remote
Employees
Basic Concept of Extranets

20. Elements of Extranets
 Components of Extranets
 Intranets
 Web sever
 Firewalls
 Internet Service Provider (ISP)
– Tunneling
technology
– Interface software
– Business application
• Methods to configure Extranets
– They can be implemented using a direct leased line with
full control over it, linking all intranets.
– A secure link can be created across the Internet, which
can be used by the corporation as a virtually private
network (VPN).

21. 21
Summary : Internet, Intranet, and
Extranet
Network Typical Type of
Type Users Access Information
Internet Any individual
with dial-up
access or LAN
Unlimited
Public; no
Restrictions
General, public
and advertorial
Intranet Authorized
employees
ONLY
Private and
Restricted
Specific,
Corporate and
Proprietary
Extranet Authorized
groups from
collaborating
companies
Private and
Outside
Authorized
Partners
Shared in
Authorized
Collaborating
Group

22. Types of E-Commerce
• B2B (seller and buyer are business entities)
• B2C (seller is business; buyer is consumer)
• Other types
– C2C (seller and buyer are consumers; not covered
in our outline; eBay)
– G2C, G2B, G2G
22

23. Main Ideas in B2B E-Commerce
• Buying and selling in B2B
– Auctions support dynamic pricing (bidding)
– Exchanges support dynamic and negotiated prices
• Supporting technologies for buying/selling
– VAN EDI and Web enabled EDI
– Electronic funds transfer
– Digital signature and digital certificates
• Activities other than buying and selling
– Alliances
– Sharing of supply chain information
– Sharing of product designs, logistics, forecasts
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24. Size of the B2B Market
• By 2004 market may reach $10 trillion; much larger than B2C
market
• In the US 40 percent of all B2B transactions are done on-line
• B2B commerce is about 10 times as great as B2C commerce
24

25. Classifying Auctions/Exchanges Overview
• Public or private
– Auctions tend to be public; exchanges tend to be
private
• Number of participants
– Sell side one seller
– Buy side one buyer (GE or ChoiceBuy)
– Many sellers and many buyers (ChemConnect)
• Ownership
– Industry giant
– Neutral third party
– Consortium 25

26. Sell-Side with One Seller
• Sellers may be click-and-mortar manufacturer or
intermediaries
• Use the Internet to sell through electronic catalogs
– Cisco, Dell, Staples
– Separate pages and catalogs for major buyers
• Boeing sponsors a website for which airlines can find
maintenance and parts
26

27. Buy-Side with One Buyer
• This model arises from the procurement needs of firms
where procurement involves the purchase of goods and
services needed to accomplish the mission of the business
• In this model a buyer opens an electronic market on its own
server and invites potential suppliers to bid on the items the
buyer needs. The invitation is called a request for quote
(RFQ). This process is called the reverse auction of bidding
mode.
• GE was one of the first to do this
• Online directories exist for suppliers that list open RFQs
27

28. Exchanges with Many Buyers and Sellers
• In these exchanges buyers and sellers may be interested in
both long term contracts or one-time transactions at
prevailing prices.
• Examples
– ChemConnect
– Alibaba.com
– Converge.com (spot market for electric,
networking and computer components)
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29. Classifying Exchanges/Auctions (cont)
Ownership of Exchanges
• Industry giant
– IBM established an exchange for selling patents
(delphion.com)
• Neutral entrepreneur
– ChemConnect.com
• The consortia or co-op
– Covisint (automobile)
– Orbitz (airlines)
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30. Services Provided by Intermediaries in an
Auction/Exchange
• Services for buyers
– Automate buying, contract management,
purchase orders, requisitions, business rules
enforcement, and payment
• Services for sellers
– Catalog creation and content management, order
management, invoicing, and settlement
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31. Other B2B E-commerce Practices:
Alliances and Sharing Information
• Alliances
– Online business alliances of airlines such as Orbitz
(www.orbitz.com) and Star Alliance
– Covisint is an alliance of major automobile makers
– In real estate (MLS)
• Sharing of information (collaborative commerce)
– Extranet idea
– Sharing of supply chain information
– Joint design
31

32. Technologies that Support B2B
• VAN and Web-enabled EDI
• Electronic funds transfer (EFT)
• Digital signatures and certificates
– Ways to authenticate online messages similar to physical signatures
on paper.
32

33. Major Benefits of B2B to Business
• Reduction of paper and administrative costs
• Reduces cycle time (time compression)
• Reduces search costs and time for buyers and sellers
• Reduces inventory levels and costs
• Reduction in errors and/or improved quality of service
• Enables JIT and production flexibility
• Expands the marketplace
33

34. An Overview of B2C E-commerce Practices
• Growth of B2C (see graph in textbook); over 50% of US is
online
• E-tail revenues doubled from 2002 to 2005
• Types of e-retailers (e-tailers)
– Pure-play versus bricks-and-mortar
– Clicks-and-bricks
– Catalogue retailers
34

35. E-tailing
• Fulfillment concept (picking, packing, and shipping
• Advantages to the seller
– Lower inventory by routing orders directly to
manufacturer
– Lower labor costs (no registers)
– Lower building costs
• Advantages to the buyer
– Convenience and time savings
– Search mechanisms and comparison shopping
– Selection and product reviews
35

36. E-tailing Practices
• Consumer profiling and one-to-one marketing; both
concepts relate to knowing the consumer better so that the
business can serve consumers more effectively at lower cost
to the business
– Cookies, clickstream tracking
– Buying and selling information from third parties
• Affiliate programs
– Location of the link versus target of link
– Compensation schemes
• Cooperation among competitors
– Amazon example
• Conversion rates
– Pure-play beats clicks and bricks companies
• Mass-customization
• Reverse auctions (Priceline.com) 36

37. Digital Products and Services
• Digital products include products like software,
photographs, music, movies, or text that can be
delivered over the Internet
– regards.com (greeting cards) and
photodisc.com (photographs)
– Why are these products special?
• Digital services
– Application service providers (renting
software)
– Renting storage space (rackspace.com)
– Online banking (direct.com) 37

38. Pure-play Business Models
• Virtual storefront: Sells goods or services online
(Amazon.com)
• Information broker: Provides information on products or
services (Edmunds.com)
• Transaction broker: Provides online transaction facility
(eTrade.com, Expedia.com)
• Online marketplace: Provides a trading platform for
individuals and firms (eBay.com, alibaba.com)
38

39. More Pure-play Business Models
• Content provider: Creates revenue by providing content
(WSJ.com, TheStreet.com, mp3.com)
• Online service provider: Provides online services, including
search service. (Google.com, Xdrive.com)
• Virtual community: Provides an online community to
focused groups (Friendster.com, iVillage.com)
• Portal: Provides initial point of entry to Web, specialized
content, services (Yahoo.com, MSN.com)
39

40. M-Commerce
• M-commerce concerns the ability of mobile devices to
reach the Internet and the ability of merchants to locate a
mobile device.
• Mobile devices must have GPS capability
• Competitive position of US relative to Japan/Korea
• Consumer services
– Information based services – instant
messaging, email, search for information
– Transaction based services – purchase stocks,
concert tickets, music, or search for price
– Location based services –anticipate what you
want based on your location or data profile
(beam coupons for nearby restaurants)
• Business services
40

41. Practices (rules) that Attract and Retain Customers
(both B2B and B2C)
• Use of affiliate programs to target the right customer (links
with related sites)
• Use cookies and CRM software to analyze customer
behavior
• Use CRM software to develop customer profiles and
personalize shopping
• Shorten the business cycle; fill orders quickly
• Empower customers to help themselves; see text for
examples
• Be proactive; capture the customer’s email address and
use it to bring the customer back; de-commoditize
• E-commerce is every commerce
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42. Ethical and Societal Issues
• Online annoyances
– Spamming
• Advertisers viewpoint
• Consumers viewpoint
– Pop-up windows
– Adware and spyware
– Phishing
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