c h a p t e r

99THE INTERNET & THE INTERNET &

THE NEW THE NEW INFORMATION INFORMATION TECHNOLOGY TECHNOLOGY

INFRASTRUCTUREINFRASTRUCTURE

• DESCRIBE FEATURES OF DESCRIBE FEATURES OF INFRASTRUCTURE & CONNECTIVITY INFRASTRUCTURE & CONNECTIVITY STANDARDSSTANDARDS

• DESCRIBE INTERNET & ITS DESCRIBE INTERNET & ITS CAPABILITIESCAPABILITIES

• EVALUATE INTERNET EVALUATE INTERNET BENEFITSBENEFITS

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LEARNING OBJECTIVESLEARNING OBJECTIVES

• DESCRIBE TECHNOLOGIES FOR DESCRIBE TECHNOLOGIES FOR SUPPORTING ELECTRONIC SUPPORTING ELECTRONIC COMMERCECOMMERCE

• ANALYZE PROBLEMS OF NEW ANALYZE PROBLEMS OF NEW INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY (IT)(IT) INFRASTRUCTUREINFRASTRUCTURE

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LEARNING OBJECTIVESLEARNING OBJECTIVES

MANAGEMENT MANAGEMENT CHALLENGESCHALLENGES• NEW INFORMATION TECHNOLOGY NEW INFORMATION TECHNOLOGY

INFRASTRUCTUREINFRASTRUCTURE• THE INTERNETTHE INTERNET• THE WORLD WIDE WEBTHE WORLD WIDE WEB• SUPPORT TECHNOLOGIES FOR SUPPORT TECHNOLOGIES FOR

ELECTRONIC COMMERCE & ELECTRONIC ELECTRONIC COMMERCE & ELECTRONIC BUSINESSBUSINESS

• MANAGEMENT ISSUES & DECISIONSMANAGEMENT ISSUES & DECISIONS

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MANAGEMENT MANAGEMENT CHALLENGESCHALLENGES

1. BROADER PERSPECTIVE OF 1. BROADER PERSPECTIVE OF INFRASTUCTURE DEVELOPMENTINFRASTUCTURE DEVELOPMENT

2. SELECTING TECHNOLOGIES FOR 2. SELECTING TECHNOLOGIES FOR ITIT INFRASTUCTURE INFRASTUCTURE (CONNECTIVITY)(CONNECTIVITY)

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THE NEW INFORMATION THE NEW INFORMATION TECHNOLOGY TECHNOLOGY (IT) (IT) INFRASTRUCTUREINFRASTRUCTURE

• LINKS:LINKS: Workstations, network computers, Workstations, network computers, local area networks local area networks (LAN),(LAN), server server computerscomputers

• INFORMATION FLOWS FREELY INFORMATION FLOWS FREELY THROUGHOUT ORGANIZATIONTHROUGHOUT ORGANIZATION

• MAY BE LINKED:MAY BE LINKED: Kiosks, point-of-sales Kiosks, point-of-sales (POS)(POS) terminals, information appliances, terminals, information appliances, InternetInternet

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• ENTERPRISE NETWORKING:ENTERPRISE NETWORKING: Hardware, Hardware, software, networks, data resources. software, networks, data resources. Creates companywide network to speed Creates companywide network to speed processes, lower costsprocesses, lower costs

• INTERNETWORKING:INTERNETWORKING: Linking of Linking of separate networks in an outside of separate networks in an outside of organizationorganization

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THE NEW INFORMATION THE NEW INFORMATION TECHNOLOGY TECHNOLOGY (IT) (IT) INFRASTRUCTUREINFRASTRUCTURE

INTERNETWORKINGINTERNETWORKING

LINK NETWORKSLINK NETWORKS

EACH RETAINS IDENTITYEACH RETAINS IDENTITY

INTO INTERCONNECTED NETWORKINTO INTERCONNECTED NETWORK

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NETWORK A

NETWORK B

NETWORK C

CONNECTIVITYCONNECTIVITY

MEASURE OF ABILITY OF COMPUTING MEASURE OF ABILITY OF COMPUTING DEVICES TO PASS & SHARE DEVICES TO PASS & SHARE

INFORMATION WITHOUT HUMAN INFORMATION WITHOUT HUMAN INTERVENTIONINTERVENTION

OPEN SYSTEMS:OPEN SYSTEMS: Software able to Software able to function on different computer platforms. function on different computer platforms. Nonproprietary operating systems, Nonproprietary operating systems, applications, protocolsapplications, protocols

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REFERENCE MODEL DEVELOPED BY REFERENCE MODEL DEVELOPED BY DEPARTMENT OF DEFENSE IN 1972DEPARTMENT OF DEFENSE IN 1972

1. APPLICATION:1. APPLICATION: Provides screen presentations Provides screen presentations

2. TRANSMISSION CONTROL PROTOCOL (TCP):2. TRANSMISSION CONTROL PROTOCOL (TCP): Breaks data into datagramsBreaks data into datagrams

3. 3. INTERNET PROTOCOL (IP):INTERNET PROTOCOL (IP): Breaks, sends Breaks, sends datagrams as smaller IP packets; can repeat datagrams as smaller IP packets; can repeat transmission to increase reliabilitytransmission to increase reliability

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TRANSMISSION CONTROL TRANSMISSION CONTROL PROTOCOL / INTERNET PROTOCOL / INTERNET

PROTOCOL PROTOCOL (TCP / IP)(TCP / IP)

4. NETWORK INTERFACE:4. NETWORK INTERFACE: Handles Handles addressing and interface between addressing and interface between computer & networkcomputer & network

5. PHYSICAL NET:5. PHYSICAL NET: Defines electrical Defines electrical transmission characteristics for sending transmission characteristics for sending signal along networks to destinationsignal along networks to destination

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TRANSMISSION CONTROL TRANSMISSION CONTROL PROTOCOL / INTERNET PROTOCOL / INTERNET

PROTOCOL PROTOCOL (TCP / IP)(TCP / IP)

OPEN SYSTEM OPEN SYSTEM INTERCONNECT INTERCONNECT (OSI)(OSI)

INTERNATIONAL REFERENCE INTERNATIONAL REFERENCE MODELMODEL

FOR LINKING DIFFERENT TYPES FOR LINKING DIFFERENT TYPES OFOF

COMPUTERS & NETWORKSCOMPUTERS & NETWORKS

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THE INTERNETTHE INTERNET

BEGAN AS GOVERNMENT CONNECTION BEGAN AS GOVERNMENT CONNECTION OF UNIVERSITIESOF UNIVERSITIES

INTERNET SERVICE PROVIDER (ISP):INTERNET SERVICE PROVIDER (ISP): Organization connected to Internet, Organization connected to Internet,

leases temporary connections to leases temporary connections to subscriberssubscribers

NO ONE OWNS IT, NO FORMAL NO ONE OWNS IT, NO FORMAL ORGANIZATIONORGANIZATION

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INTERNET TERMSINTERNET TERMS

• HOME PAGE:HOME PAGE: WWW screen display WWW screen display welcomes user to organization’s pagewelcomes user to organization’s page

• WEBMASTER:WEBMASTER: Person in charge of Web Person in charge of Web sitesite

• UNIFORM RESOURCE LOCATOR (URL):UNIFORM RESOURCE LOCATOR (URL): Address of specific Internet resourceAddress of specific Internet resource

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EXAMPLES OF INTERNET EXAMPLES OF INTERNET

CLIENT PLATFORMSCLIENT PLATFORMS• PC:PC: General purpose, performs many General purpose, performs many

tasks, may be unreliable, complextasks, may be unreliable, complex• NET PC:NET PC: Minimal local storage & Minimal local storage &

processing, uses software, services processing, uses software, services delivered by Internetdelivered by Internet

• PAGER:PAGER: Handheld, provides limited e- Handheld, provides limited e-mail, browsingmail, browsing

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EXAMPLES OF INTERNET EXAMPLES OF INTERNET CLIENT PLATFORMSCLIENT PLATFORMS

• SMART PHONE:SMART PHONE: Handheld, has small Handheld, has small screen, keyboard, e-mail, browsing, screen, keyboard, e-mail, browsing, voicevoice

• GAME MACHINE:GAME MACHINE: Modem, keyboard, Modem, keyboard, Web accessWeb access

• PERSONAL DIGITAL ASSISTANT (PDA):PERSONAL DIGITAL ASSISTANT (PDA): Handheld personal digital assistantHandheld personal digital assistant

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EXAMPLES OF INTERNET EXAMPLES OF INTERNET CLIENT PLATFORMSCLIENT PLATFORMS

• E-MAIL MACHINE:E-MAIL MACHINE: Tablet, keyboard, Tablet, keyboard, text e-mail, requires e-mail servicetext e-mail, requires e-mail service

• SET TOP BOX:SET TOP BOX: Provides Web Provides Web surfing, e-mail, uses television set, surfing, e-mail, uses television set, wireless keyboardwireless keyboard

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CLIENT/ SERVER ON THE CLIENT/ SERVER ON THE INTERNETINTERNET

• CLIENT:CLIENT: Runs Web browser, other Runs Web browser, other software, connects to serversoftware, connects to server

• SERVER:SERVER: Has Web server Has Web server (HTTP)(HTTP), Simple , Simple Mail Transfer Protocol Mail Transfer Protocol (SMTP)(SMTP), Domain , Domain Name Serving Name Serving (DNS)(DNS), File Transfer , File Transfer Protocol Protocol (FTP)(FTP), Firewall (filters data to & , Firewall (filters data to & from Internet), Network News from Internet), Network News Transfer Protocol Transfer Protocol (NNTP)(NNTP)

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MAJOR INTERNET SERVICESMAJOR INTERNET SERVICES

• E -MAIL:E -MAIL: Person -to-person messaging; document Person -to-person messaging; document sharingsharing

• USERNET NEWSGROUPS:USERNET NEWSGROUPS: Electronic bulletin Electronic bulletin boards for discussion groupsboards for discussion groups

• LISTSERVs:LISTSERVs: e-mail list servers for discussion e-mail list servers for discussion groupsgroups

• CHATTING:CHATTING: Interactive conversationsInteractive conversations• TELNET:TELNET: Log on one computer, work on anotherLog on one computer, work on another• FTP:FTP: Transfer files from computer to computerTransfer files from computer to computer• GOPHERS:GOPHERS: Use menus to locate text materialUse menus to locate text material• WORLD WIDE WEB:WORLD WIDE WEB: Text, audio, graphics, video Text, audio, graphics, video

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INTERNET ADDRESSINTERNET ADDRESS

http://www.prenhall.com/laudon

PROTOCOL FOR THE PROTOCOL FOR THE WEBWEB

HOST HOST COMPUTERCOMPUTER DIRECTORYDIRECTORY

EXTENSIONEXTENSION

DOMAIN NAME

INTERNET TERMSINTERNET TERMS

• HYPERTEXT TRANSPORT HYPERTEXT TRANSPORT PROTOCOL (http):PROTOCOL (http): Communications Communications standard used to transfer Web pagesstandard used to transfer Web pages

• HYPERTEXT MARKUP LANGUAGE HYPERTEXT MARKUP LANGUAGE (HTML):(HTML): Popular programming Popular programming language for creating Web siteslanguage for creating Web sites

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SEARCHING THE WEB FOR SEARCHING THE WEB FOR INFORMATIONINFORMATION

• SEARCH ENGINE:SEARCH ENGINE: Tool for locating Tool for locating specific sites or information on WWWspecific sites or information on WWW

• PORTAL:PORTAL: Point of entry to WWW Point of entry to WWW

• ““PUSH” TECHNOLOGY:PUSH” TECHNOLOGY: Server streams Server streams relevant content to browserrelevant content to browser

• MULTICASTING:MULTICASTING: Sending data to select Sending data to select groupgroup

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NEXT GENERATION INTERNETNEXT GENERATION INTERNET

• BROADBAND:BROADBAND: Fiber optics and Fiber optics and related technology will provide much related technology will provide much higher delivery speed (target: 10 to higher delivery speed (target: 10 to 100 million bits per second to the 100 million bits per second to the desktop)desktop)

• INTERNET2INTERNET2

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NEXT GENERATION INTERNETNEXT GENERATION INTERNET• INTERNET2:INTERNET2: New protocols, New protocols, higher higher

transmission speed, interconnected transmission speed, interconnected gigapopsgigapops (regional high-speed points-of- (regional high-speed points-of-presence), connected to high-presence), connected to high-performance Backbone Network performance Backbone Network infrastructure. Will differentiate priorities infrastructure. Will differentiate priorities of messages, provide video portals for of messages, provide video portals for lifelike videolifelike video

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THE WIRELESS WEBTHE WIRELESS WEB• MOBILE COMMERCE MOBILE COMMERCE

(m-commerce)(m-commerce)

• ACCESS TO WEB ON THE GO:ACCESS TO WEB ON THE GO: Anywhere, any time, many functionsAnywhere, any time, many functions

• INFORMATION-BASED SERVICESINFORMATION-BASED SERVICES

• TRANSACTION-BASED SERVICESTRANSACTION-BASED SERVICES

• PERSONALIZED SERVICESPERSONALIZED SERVICES

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INTRANETINTRANET

• INTERNAL NETWORKINTERNAL NETWORK• WWW TECHNOLOGYWWW TECHNOLOGY• FIREWALL:FIREWALL: Security System to Prevent Security System to Prevent

Invasion of Private NetworksInvasion of Private Networks• OVERCOMES COMPUTER PLATFORM OVERCOMES COMPUTER PLATFORM

DIFFERENCESDIFFERENCES• OFTEN INSTALLED ON EXISTING OFTEN INSTALLED ON EXISTING

NETWORK INFRASTRUCTURENETWORK INFRASTRUCTURE

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EXTRANETEXTRANET

ALLOWS SELECT USERS OUTSIDE ALLOWS SELECT USERS OUTSIDE ORGANIZATION TO USE ITS ORGANIZATION TO USE ITS

INTRANET:INTRANET:

• CUSTOMERSCUSTOMERS

• BUSINESS PARTNERSBUSINESS PARTNERS

• VENDORSVENDORS

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EXTRANETEXTRANET

INTERNET

CUSTOMER

SUPPLIER FIREWALL

DATABASES

SERVER

CLIENTS

BUSINESSPARTNER

INTERNET BENEFITSINTERNET BENEFITS

• GLOBAL CONNECTIVITYGLOBAL CONNECTIVITY• REDUCED COMMUNICATIONS COSTREDUCED COMMUNICATIONS COST• LOWER TRANSACTION COSTSLOWER TRANSACTION COSTS• REDUCED AGENCY COSTSREDUCED AGENCY COSTS• INTERACTIVITY, FLEXIBILITY, INTERACTIVITY, FLEXIBILITY,

CUSTOMIZATIONCUSTOMIZATION• ACCELERATED KNOWLEDGEACCELERATED KNOWLEDGE

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E-COMMERCE E-COMMERCE SERVER SOFTWARESERVER SOFTWARE

• SET UP ELECTRONIC STOREFRONTSET UP ELECTRONIC STOREFRONT• DESIGN ELECTRONIC SHOPPING CARTDESIGN ELECTRONIC SHOPPING CART• MAKE SHIPPING ARRANGEMENTSMAKE SHIPPING ARRANGEMENTS• LINK TO ELECTRONIC PAYMENTLINK TO ELECTRONIC PAYMENT• DISPLAY PRODUCT AVAILABILITY & TRACK DISPLAY PRODUCT AVAILABILITY & TRACK

SHIPMENTSSHIPMENTS• CONNECT TO BACK-OFFICE SYSTEMSCONNECT TO BACK-OFFICE SYSTEMS• REPORT TRANSACTIONREPORT TRANSACTION

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CUSTOMERCUSTOMER TRACKING TOOLSTRACKING TOOLS

• COLLECT & STORE DATA ON BEHAVIORCOLLECT & STORE DATA ON BEHAVIOR• ANALYZE DATAANALYZE DATA• IDENTIFY TRENDSIDENTIFY TRENDS• CLICKSTREAM TRACKING:CLICKSTREAM TRACKING: Collects Collects

detailed customer data, stores in logdetailed customer data, stores in log• COLLABORATIVE FILTERING:COLLABORATIVE FILTERING: Combines Combines

data on similar customers, predicts future data on similar customers, predicts future behaviorbehavior

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ADDITIONALADDITIONALTOOLSTOOLS

• WEB CONTENT MANAGEMENT:WEB CONTENT MANAGEMENT: Assists Webmaster oversee large sitesAssists Webmaster oversee large sites

• WEB SITE PERFORMANCE WEB SITE PERFORMANCE MONITORING:MONITORING: Detects, analyzes, helps Detects, analyzes, helps correct problemscorrect problems

• WEB HOSTING SERVICE:WEB HOSTING SERVICE: Maintains Maintains large Web server for subscriberslarge Web server for subscribers

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POTENTIAL PROBLEMS WITH POTENTIAL PROBLEMS WITH ITIT INFRASTRUCTUREINFRASTRUCTURE

• CONNECTIVITY & APPLICATION CONNECTIVITY & APPLICATION INTEGRATIONINTEGRATION

• LOSS OF MANAGEMENT CONTROLLOSS OF MANAGEMENT CONTROL

• ORGANIZATIONAL CHANGEORGANIZATIONAL CHANGE

• HIDDEN COSTSHIDDEN COSTS

• NETWORK RELIABILITY, SECURITY, NETWORK RELIABILITY, SECURITY, BANDWIDTHBANDWIDTH

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c h a p t e r

99THE INTERNET & THE INTERNET &

THE NEW THE NEW INFORMATION INFORMATION TECHNOLOGY TECHNOLOGY

INFRASTRUCTUREINFRASTRUCTURE