Welcome to CMPE003 Personal Computers: Hardware and SoftwareDr. Chane FullmerFall 2002UC Santa Cruz

AssignmentsAssignment #5 Due November 8, 2002ProgrammingEdit a Java Script program fileIf you want more information about javascript, visit http://www.htmlgoodies.com. http://www.soe.ucsc.edu/classes/cmpe003/Fall02/hw5_javascript.html

Class InformationMidterm #2 Monday November 4, 2002.ID required.Covers Chapters 6 through 10.Book reading plus lectures.Multiple choiceRequires Scantron #F-1712-ERI-L (pink)~50 questionsNo makeups after the fact

The Internet in Business:Corporations, Businesses, and EntrepreneursChapter 9

ObjectivesDiscuss the pervasiveness and inevitability of business on the InternetExplain how money factors, especially advertising, affect the WebDescribe the likely success factors for Web entrepreneursDifferentiate between business-to-Consumer and Business-to-Business sitesExplain the importance of Internet transmission speed for business sitesDifferentiate between intranets, extranets and virtual private networks

E-CommerceElectronic CommerceBuying and selling over the Internet

E-CommerceRetail SitesRetail becomes etail

E-CommerceRetail SitesClothesOut-of-print biographyUsed carBargain airline ticketsMusic CDsVideosBaby equipmentJewelrySporting goodsOffice suppliesCosmeticsFlowersGiftsGroceriesWhats for Sale? EVERYTHING!

EtailAdvantage to ConsumerAny time shoppingNo need to dress and travel shop naked!!Saves timeProvides simple means to comparison-shopAnyplaceContributes to competition

EtailSavings to retail businessNo physical store buildingPeople time

The Commerce SiteLists and views of products and pricesContentProduct relatedUpdated regularlyWritten to interest visitors in returning to site to purchase in the future

Commerce vs. Content SitesCommerce adding contentContent adding products and sales informationDivision is no longer clear

E-Commerce AcceptanceOpposition to e-Commerce by in-person sales representativesStrategy to merge Etail and RetailWeb site prices may be higherCommission to sales representative on each Internet transaction regardless of their involvement with its originWeb site marketing followed by local store purchase

E-Commerce AcceptanceSuccessful web site may alienate others

Promoting a Web SiteUsers must find their way to the siteAdvertising neededTraditional ads on web pagesPortals

PortalsDefinition entry point to the rest of the InternetPresents content and links to variety of topicsCustomize the contentUser provides personal dataPortal provides related information and links Can become your home page

PortalsEarning MoneyFlat fee to be listed on portal based upon number of visitors to the sitePercentage of sale generated by a visitor who traveled to the affiliate via the portal

PortalsWho Are They?Yahoo!MSNSnap!ExciteNetscapeGo NetworkAmerica OnlineSearch engines that expanded their content and retail connections

AdvertisingPay a fee to the host siteDisadvantage of online AdsContain graphics and applets that load slowlyAds load first

AdvertisingTypes of Online AdsBanner adsClickableUsers reluctant to click through Live bannerDisplays sales pitchUser does not need to leave current siteWork slowlyExpensive to developContext-sensitiveAd is related to subject matter on web pageGreater click through and conversion

Web-based BusinessSimple to start-up of new businessesProvides access to people and global marketsMinimum investmentServer linkHome pageCompetitionNot a level playing fieldLarge advertising budgets of large companies get the word out

Web-based BusinessMake business look largeMany products can be offered since no inventoryNo physical space to reflect size

PaymentsFinalize order byPhoneFaxCall with credit card numberEnter credit card numberSecurityCommunication between buyer and retailer is encryptedUse SSL (Secure Sockets Layer) protocol and generate the message our secure server

TaxesAmerican Federal Law

Taxes due only on mail-orders within your stateActual presence of etail is debatable

TaxesInternet Tax Freedom Act 1998ProvisionsNo tax on Internet access chargesNo new tax on out-of-state businesses (insures that presence is not redefined)Creates temporary commission to study Internet taxesDemand that foreign governments keep Internet free of taxes and tariffsFree of taxes for three yearsCan impose same tax regulations as phone or mail orderProvisions extended through 2005

Success FactorsMaking a ProfitContentWhat you have to say and offerCannot be staticNews about product, scores, contest, searchesUniquenessNot offered elsewhereDifficult to obtainSelf-helpSearch for productOrder productCheck the status of an orderTrack a deliveryCommunityProvide sense of communitySharing between visitorsPrizesRepeat business needed

B2CBusiness-to-ConsumerActivity between business and individualUser makes purchase based upon personal decisionsGrowing$38 billion in 1998Over $800 billion by 2005Global trend more than online sales will be outside US by 2004

B2BBusiness-to-BusinessActivity of one business providing another with materials and suppliesAdvantages to buyersReduced costs of procurementConsider a larger number of suppliersProblemsSecurityAntitrust concernsGrowing$92 billion in 1998$2 trillion in 2004

Internet SpeedTrafficNot planned for current useVictim of its own successOriginal InternetLow-speedText-basedLimited sitesTodays Internet100s of Million of usersDownloading high-volume multimedia dataCauses slow transmission speedsCongestion on the links

Internet SpeedImpacts BusinessLarge companies use T1 and T3 lines and have servers capable of thousands of concurrent visitorsSmaller business connect via ISP or pay a company with high-speed connections to host their site

Internet SpeedSolutionsIncrease bandwidthSatelliteISDNDSLCable modemIncrease backbone capacityBackbone communication lines across geographical areasAdvances in technologyInvestment in new facilitiesChange Internet access fees

StreamingHear and see digitized content as it is downloadedAudioVideoAnimationUses substantial bandwidthQuality of contentSpeed of connectionInternet trafficPerformance will improve as bandwidth improvesContent is displayed using Plug-ins

StreamingRealPlayerFree download from RealNetworksBroadcast.comLive radioCanned television shows

Sharing FilesUnicastingSend multiple computers copies of files individuallyWastes bandwidth as you are sending the same file over and over

Sharing FilesBroadcastSend one copy of the file to every computer on the networkWasteful some users do not need the fileCompromises securityMulticastingSend one copy of the file and it is directed only to the appropriate recipients

Push TechnologyWebcastingSoftware that sends (pushes) information from the Internet to a users PCMakes business active participants in providing information to users

Push TechnologyHow it WorksUser provides consent by downloading and installing free push softwareUser selects channels to receiveUser sets update schedulePush software goes to the Internet on schedule and downloads updated information for the channels

Push TechnologyGood or Bad?Time-saver for user; no browsing requiredUses precious bandwidth to send graphics and advertisingExcellent candidate for multicasting

IntranetsInternal networkPrivate to a certain companyEasy and fast to setupInexpensive

IntranetSetting it UpSame components as needed for Internet

Computers for accessServerTCP/IPSoftware including a browser

IntranetWeb Pages for Employee UsePersonnel dataInternal job postingCorporate policy informationAvailable training coursesCafeteria menuNotices from management

Intranet, Internet, ExtranetInternetPublicIntranetPrivateCan be linked to InternetExtranetProvide access to Intranet to selected customer and suppliersReplacing EDI

VPNVirtual Private NetworksUse public Internet as a channel for private data communicationUse the Internet to access the company network rather than private linesSharing public linesLower cost

VPNBenefitsLower operating costsSimplifies communicationsNo 800 lines and long distance chargesReduces in-house management responsibilitiesCommunication needs handled by ISP

VPNTechnologyTunneling / encapsulationTransfer of data between two similar networks over an intermediate networkPoint-to-Point Tunneling Protocol (PPTP) proposed protocol for tunnelingEncloses packet of one protocol (PPTP) inside packet using different protocol (TCP/IP)EncryptionPackets are encrypted before encapsulationAuthentication software used

Consolidation of the WebConsolidation brings efficiency and uniformityOccurring quicklyLarge scale1999 AOL purchased NetscapeConglomerates moving in will control the majority of what we see