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The Internet: Information Technology Infrastructure for the Digital Firm

Chapter 9

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Objectives

1. How does the Internet work? What are its major capabilities and benefits to business?

2. What is the World Wide Web? How can organizations benefit from using the Web and Web technology?

3. What wireless technologies can be used for accessing the Web? What are the principal Wireless Web applications?

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Objectives

4. What are the principal technologies for supporting electronic commerce and electronic business?

5. What management problems are raised by Internet computing and technologies for digital integration? How can businesses solve these problems?

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Management Challenges

1. Taking a broader perspective on infrastructure development

2. Creating appropriate business standards for digital integration

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Perhaps the most well-known and the largest

implementation of internetworking, linking

hundreds of thousands of individual networks all

over the world

The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

What is the Internet?

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

Internet Service Provider (ISP)

• Commercial organization with a permanent connection to Internet

• Sells temporary connections to subscribers

What is the Internet?

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

Information Appliance

• Device customized to perform few specialized computing tasks with minimal user effort

What is the Internet?

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

Client/server computing on the Internet

Figure 9-1

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

• Electronic Mail (E-Mail): Person to person messaging; document sharing

• Usenet Newsgroups: Discussion groups on electronic bulletin boards

• LISTSERVs: Discussion groups using e-mail mailing list servers

Communication on the Internet

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

• Chatting: Live, interactive conversations over a public network

• Instant Messaging: Chat service that allows participants to create their own private chat channels

Communication on the Internet

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

• Telnet: Logging on to one computer system and doing work on another

• FTP: Transferring files from computer to computer

• World Wide Web: Retrieve, format, and display information using hypertext links

Communication on the Internet

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

Components of an Internet E-Mail Address

• Domain Name: The name identifying a unique node on the Internet

• Internet Protocol (IP) Address: Four-part numeric address including a unique computer location on the Internet

• Domain Name System (DNS): A hierarchical system of servers maintaining databases enabling the conversion of domain names to their IP addresses

Communication on the Internet

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

Analysis of an Internet address

Figure 9-2

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

• Internet Telephony: Technologies that use the Internet Protocol’s packet-switched connections for voice service

• Voice over IP (VoIP): Facilities for managing the delivery of voice information using the Internet Protocol (IP)

Communication on the Internet

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

How IP telephony works

Figure 9-3

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

• Virtual Private Network (VPN): A secure connection between two points across a public network to transmit corporate data. Provides a low-cost alternative to a private network.

Communication on the Internet

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

A virtual private network (VPN) using the Internet

Figure 9-4

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

IP Virtual Private Networks Provide New Services and Savings

• What are the management benefits of using VPNs?

• How do VPNs provide value for the organization?• What management, organization, and technology

issues should be addressed when deciding to use an Internet-based VPN?

Window on Management

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The Internet: Information Technology Infrastructurefor E-Commerce and E-Business

Internet2 and Next Generation Networks

• Research networks with new protocols and transmission speeds

• Provide infrastructures for supporting high bandwidth Internet applications

Next-Generation Networks and Internet2

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The World Wide Web

• Based on a standard hypertext language called hypertext markup language (HTML)

• Combines text, hypermedia, graphics, and sound

• Handles all types of digital communication

• Uses graphical user interfaces for easy viewing

Overview

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The World Wide Web

• Home Page: A World Wide Web text and graphical screen display that welcomes the user and explains the organization that has established the page

• Webmaster: The person in charge of an organization’s Web site

Overview

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• Uniform Resource Locator (URL): The address of a specific resource on the Internet

• Hypertext Transport Protocol: The communications standard used to transfer pages on the Web. Defines how messages are formatted and transmitted.

The World Wide Web

Overview

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The World Wide Web

• Search Engine: A tool for locating specific sites or information on Internet

• Search-based Advertising: Payment to a search service to display a sponsored link to a company’s Web site as a way of advertising that company

• Shopping Bot: Software with varying levels of built-in intelligence to help electronic commerce shoppers locate and evaluate products or services

Searching for Information on the Web

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The World Wide Web

Is Asking Jeeves the Answer for Novartis?

• What are Novartis’s business benefits to using Jeeves Solutions?

• What management, organization, and technology issues and costs would using Jeeves Solutions create for Novartis?

Window on Technology

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The World Wide Web

• “Push” technology: Method of obtaining relevant information on networks by having a computer broadcast directly to the user based on prespecified interests

• Multicasting: Transmission of data to a selected group of recipients

Searching for Information on the Web

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The World Wide Web

• Firewall: Hardware or software placed between an organization’s internal network and external network to prevent outsiders from invading private networks

• Extranets: Private intranets extended to authorized users outside the company

Intranets and Extranets

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The World Wide Web

Model of an extranet

Figure 9-5

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The World Wide Web

Customer personalization with the ubiquitous Internet

Figure 9-6

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The World Wide Web

Two Main Standards for Accessingthe Web from Mobile Devices:

1. Wireless Application Protocol (WAP): System of protocols and technologies that lets cell phones and other wireless devices with tiny displays, low-bandwidth connections, and minimal memory access Web-based information and services

The Wireless Web and Mobile Computing

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The World Wide Web

Two Main Standards for Accessingthe Web from Mobile Devices:

2. I-mode: Standard developed by Japan’s NTT DoCoMo mobile phone network for enabling cell phones to receive Web-based content and services

The Wireless Web and Mobile Computing

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The World Wide Web

Wireless Application Protocol (WAP) versus I-mode

Figure 9-7

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Support Technology for Electronic Commerceand Electronic Business

• Hit: Entry into Web server’s log file generated by each request to the server for a file

• Electronic commerce server software: Provides functions essential for running e-commerce Web sites

Web Servers and Electronic Commerce Servers

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Support Technology for Electronic Commerceand Electronic Business

• Collecting and storing data on the behavior of online customers, and combining that data with data already stored in the company’s back office systems

• Analyzing the data to better understand the behavior of online customers

• Identifying customer preferences and trends

Customer Tracking and Personalization Tools

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Support Technology for Electronic Commerceand Electronic BusinessWebsite visitor tracking

Figure 9-8

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Support Technology for Electronic Commerceand Electronic Business

• Software to facilitate the collection, assembly, and management of content on Web site, intranet, or extranet

Web Content Management Tools

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Support Technology for Electronic Commerceand Electronic Business

• Software tools for monitoring the time to download Web pages, perform Web transactions, identify broken links between Web pages, and pinpoint other Web site problems and bottlenecks

Web Site Performance Monitoring Tools

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Support Technology for Electronic Commerceand Electronic Business

• Company with large Web server computers to maintain Web sites of fee-paying subscribers

Web Hosting Services

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Management Issues and Decisions

• Loss of management control

• Connectivity and application integration challenges

• Organizational change requirements

• Hidden costs

• Scalability, reliability, and security

The Challenge of Managing Internet Computing and Digital Integration

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Management Issues and Decisions

• Managing the change

• Education and training

• Data administration disciplines

• Planning for connectivity and application integration

Some Solutions

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Chapter 9 Case Study

1. Evaluate Worldspan using the value chain and competitive forces models.

2. What is the relationship of information systems to Worldspan’s business model? Why did Worldspan have to change its business model?

Can Worldspan Fly with Online Travel?

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Chapter 9 Case Study

3. How did information systems and technology support Worldspan’s new business model? What is the role of the Internet?

4. Do you think Worldspan’s strategy has been successful? Why or why not?

5. Do you believe Worldspan will be successful in the future? Explain your answer.

Can Worldspan Fly with Online Travel?