Internet and E-Commerce

History of the Internet

Components of the InternetTransmission Control Protocol (TCP)Transport-layer protocol that most Internet applications use with IPBackboneOne of the Internets high-speed, long-distance communications linksUniform Resource Locator (URL)An assigned address on the Internet for each computer

Domain Name SystemIP addresses are difficult to remember and useWith DNS, users can employ alphanumeric names that are easy to remember, such as www.cpe.eng.cmu.ac.th

Domain Name System (Contd.).com (for commercial businesses).org (for nonprofit organizations).edu (for educational institutions).gov (for the U.S. government).mil (for the U.S. military).net (for networks).int (for international entities)

Domain Name System (Contd.)Internet Corporation for Assigned Names and Numbers (ICANN)Responsible for managing IP addresses and Internet domain namesHas authority to resolve domain name disputesCyber-squattersRegister domain names in the hope of selling them to corporations or people

Uniform Resource LocatorsA string of characters associated with a specific information resource, such as www.google.com, www.cmu.ac.th, and so on

Many URLs relate to Web access via HTTP, but note that URLs also apply to many other Internet protocols and information resources

Instead of http, the first part of a URL could include ftp for File Transfer Protocol, news for Usenet news, or other Internet resource types

Uniform Resource Locators (Contd.)

How the Internet Works?

Internet Open IssuesThe Internet has been accompanied by a host of economic and social policy questions:Should online sales be taxed?Should voice services that use Internet telephony (VoIP) be regulated and taxed, like other more traditional services?How might a major Internet outage or cyberterrorist attack affect nations economically?

Internet Open Issues (Contd.)Some countries restrict or prohibit Internet access for political or religious reasonsWhose laws should apply, and how should they apply to a network that transcends national boundaries?In what ways will the Internet intersect with politics?What are the ramifications of the international digital divide, in which some countries have widespread Internet access and computing resources, and others have limited resources?

Case Study: The 2014 Leak ScandalSource of picturesiCloudSecurity flawFind My iPhoneHow?The application allows users to input password as many times as they wantThe hacker(s) used brute force password hackingResultsPrivate pictures from at least 21 celebrity, hundreds of pictures, more than 500MB in size total (and still growing), are now spread on the Internet

Internet Application

The World Wide WebCollection of tens of millions of server computers that work together as one in an Internet HyperlinkHighlighted text or graphics in a Web document that, when clicked, opens a new Web page Web browserWeb client software such as Internet Explorer, Firefox, Safari, Opera, and Google Chrome used to view Web pages

The World Wide Web (Contd.)Hypertext Markup Language (HTML)Standard page description language for Web pagesHTML tagsLet the browser know how to format text Extensible Markup Language (XML)Markup language for Web documents containing structured informationCascading Style Sheet (CSS)File or portion of an HTML file that defines the visual appearance of content in a Web page

Web Programming LanguagesJavaHTML5Other platformsAsynchronous JavaScript and XML (AJAX)Hypertext Preprocessor (PHP)Adobe Flash, Microsoft Silverlight, IBM Worklight

Sample HTML5 WebsitesThe Wilderness Downtownhttp://www.thewildernessdowntown.com/Heart of the Attichttp://heartofthearctic.ca/Three Dreams of Blackhttp://www.ro.me/Enjoy Your Privacyhttp://www.enjoyyourprivacy.com/Google Play Music Tourhttp://play.google.com/about/music/tour/

Source: http://www.ebizmba.com/articles/best-html5-websites

Content Management SystemsAn emerging technology to help customizing web sitesJoomlaWordpressDrupal

Content Management Systems (Contd.)

Internet and Web ApplicationsSearch engines and Web researchSearch enginesHave become important to businesses as a tool to drive visitors to the business Web siteSearch Engine Optimization (SEO) has become a valuable marketing toolReal-time search will be a future for search engines

Sample Services from Google

ServicesWhat It DoesCodeTools and resources for developersDocsCloud officeImagesSearch for images on the webMapsView maps and get directionsNewsNews storiesTranslateLanguage translationScholarSearch through academic articlesShoppingFind the best deal on consumer products

E-MailText messagesSound, images & videosFiles

Instant MessagingOnline, real-time communication between two or more people who are connected to the InternetCan share files and other activities

Instant Expressions and AbbreviationsExpressions;-);-(:-#:-D:-0:-@:-&orzAbbreviationsAFKBRBBTWIMHOLOLOICTYOMGWTFBYOBBQInW

Leet LanguageAlso known as leetspeakIt uses various combinations of ASCII characters to replace letters.

1f u c4n r34d th1s u r3411y n33d t0 g37 141d

Internet Phone and Videoconferencing ServicesInternet phone serviceRelatively inexpensive, especially for international callsVoice-over-IP (VoIP) technologyNetwork managers can route phone calls and fax transmissions over the same network they use for dataInternet videoconferencingSupports both voice and visual communications

Skype

Google Hangout

Social NetworksFacebook, Google+Social networking platformSocial applicationAuthentication systemMedia sharingPR, CRM & AdvertisingTwitterNews sharingPR, CRM & Advertising

Facebook

Google+

Twitter

Age Distribution on Social NetworkSource: Google Ad Planner (2010)

Media SharingYouTubeVideo sharingMarketingInstagram, Flickr, ShutterflyPhoto sharingGetty Images, ShutterstockPhoto stocking

YouTube

Flickr

Shutterstock

File SharingAllow people to share files in P2P modBittorent

Bittorent

Social BookmarkingPurposeTo provide a view of the most popular Web sites, videos, blog articles, or other Web content at any given momentPopular social bookmarking sitesdelicious.comDigg

delicious.com

Digg

Web AuctionsWeb auctionA way to connect buyers and sellerseBayPopular auction siteEasy to use and includes thousands of products and services in many categoriesAuction sites Cannot always determine whether the people and companies listing products and services are legitimate

eBay

Music, Radio, Video, and TV on the InternetRadio broadcasts are now available on the InternetVideo and TV are also becoming available Internet Protocol Television (IPTV) protocolUsed to put TV programming on the Internet

Office on the WebInternet officeWeb site that contains files, phone numbers, e-mail addresses, an appointment calendar, and moreAllows your desktop computer, phone books, appointment schedulers, and other important information to be with you wherever you are

Google Drive

Internet StorageAllow users to store, retrieve and manipulate files in the cloud.Popular internet storagesDropboxSugarSynchttp://dl.dropbox.com/u/1621542/03%20-%20Internet%20and%20E-Commerce.ppt

Dropbox

WikisA wiki is a website that allows the easy creation and editing of any number of interlinked Web pagesWYSIWYG

Wikipedia

Global Internet Traffic

Online Language Populations

Using Internet for Business Process ImprovementMarketingManufacturingInvestment and finance

Internet for BPI: MarketingMarket segmentationIdentification of specific markets to target them with advertising messagesTechnology-enabled relationship managementUse of detailed information about a customers behavior, preferences, needs, and buying patterns to customize the entire relationship with that customer

Internet for BPI : ManufacturingElectronic exchangeElectronic forum where manufacturers, suppliers, and competitors buy and sell goods, trade market information, and run back-office operationsBusiness center is not a physical building but a network-based location where business interactions occur

Internet for BPI : Investment and FinanceThe Internet Has revolutionized the world of investment and financeElectronic bill presentmentEliminates all paper, down to the bill itself

e-Commerce

Electronic CommerceConducting business activities electronically over computer networksBusiness activities that are strong candidates for conversion to e-commercePaper basedTime-consumingInconvenient for customers

Traditional VS Online CommerceSource: http://www.cirrusabs.com

Benefits of e-CommerceIncrease sales and profitsDecrease costsExpand the size of the marketIncrease productivityImprove customer servicesMarket equityAccessibility to market

Modes of e-CommerceB2BB2CC2C

Business-to-Business (B2B) e-CommerceSubset of e-commerceAll the participants are organizationsUseful tool for connecting business partners in a virtual supply chain to cut resupply times and reduce costs

Business-to-Consumer (B2C) e-CommerceForm of e-commerce in which customers deal directly with an organization and avoid intermediariesDisintermediationThe elimination of intermediate organizations between the producer and the consumer

Consumer-to-Consumer (C2C) e-CommerceSubset of e-commerce that involves consumers selling directly to other consumersPopular sitesBidzcom, Craigslist, eBidePier, Ibidfree, Ubid, and TradusHighly popular among college students

e-GovernmentUse of information and communications technology to Simplify the sharing of informationSpeed formerly paper-based processesImprove the relationship between citizen and government

e-Government (Contd.)Forms of e-GovernmentGovernment-to-consumer (G2C)Government-to-business (G2B)Government-to-government (G2G)Government-to-employee (G2E)Example of e-Government applicationse-Auction

UN e-Government Survey 2014e-Government Development Index 2014 (2012)1. South Korea (1)2. Australia (12)3. Singapore (10)4. France (6)5. Netherlands (2)6. Japan (18)7. USA (5)21. Germany (17)Based on: Scope and quality of online services Telecommunication connectivity Human capacity70. China (78) 95. Philippines (88)99. Viet Nam (83)102. Thailand (92)106. Indonesia (97)118. India (124)152. Laos (153)139. Cambodia (155)

Customer Relationship ManagementInvolves managing every aspect of an organizations interactions with its customers or clients including Marketing and advertisingSalesCustomer service after the salePrograms to retain loyal customers

e-Commerce ChallengesDefining an effective e-commerce model and strategyDealing with consumer privacy concernsOvercoming consumers lack of trustSecurity of transactions

Global Challenges for e-CommerceCultural challengesLanguage challengesTime and distance challengesInfrastructure challengesCurrency challengesProduct and service challengesState, regional, and national laws

Technical LimitationsCosts of a technological solution Unfamiliar protocolsReliabilityInsufficient bandwidth Evolution of software toolsLimitation of internet accessibility

Some Preliminary Cautions for e-CommerceUnrealistic expectationsInappropriate applicationIncomplete installation

Establishing an E-Commerce

Strategies for Successful E-CommerceCompanies must develop effective Web sites that include the following characteristics:Easy to useAccomplish the goals of the companySafe and secureAffordable to set up and maintainHigh accessibility

Defining the Web Site FunctionsDecide which tasks the site must accomplishCreate an attractive presence for the companyMeet the needs of its visitorsExample: Obtaining information about the organization and its products Redefining your sites basic business model to capture new business opportunities

Establishing a Web SiteWeb site hosting companiesAllow you to set up a Web page and conduct e-commerce within a matter of daysLittle up-front costStorefront brokerCompany that acts as an intermediary between your Web site and online merchants who have the products and retail expertise

Building Traffic to Your Web SiteObtain and register a domain nameMake your site search-engine-friendly Include a meta tag in your stores home pageUse Web site traffic data analysis softwareProvide quality, keyword-rich content

Customer BehaviourThe way people find products & information

Source: Marketing Sherpa, 2005

Links from other sites88%Search engines82%Printed media63%Word of mouth58%Email48%Newsgroups32%Television32%Books28%

Search Engine StatisticsSource: ClickyMedia, http://www.clicky.co.uk/, 2014

Search Engine Attraction TechniquesPut keywords on your page title Put and bold keywords on your content Name and describe your pictures Create a site mapAvoid the use of flashAvoid the use of framesetEncourage link exchangeSource: www.seo.in.th

Top Global Internet BrowsersSource: Softpedia, Jan 2014

Maintaining and Improving Your Web SitePersonalizationTailoring Web pages to specifically target individual consumersExplicit personalizationCaptures user-provided information Implicit personalizationCaptures data from customer Web sessions

HardwareStorage capacity and computing power required of the Web server depends on:Software that will run on the serverVolume of e-commerce transactionsKey decision facing new e-commerce companiesWhether to host their own Web site or to let someone else do it

Web Server SoftwareSecurity and identificationRetrieving and sending Web pagesWeb site trackingWeb site developmentWeb page construction

e-Commerce SoftwareCatalog managementProduct configurationShopping cartWeb services

Electronic Payment SystemsDigital certificate Attachment to an e-mail message or data embedded in a Web site that verifies the identity of a sender or Web siteCertificate authority (CA) Trusted third-party organization or company that issues digital certificatesSecure Sockets Layer (SSL)Electronic cashCredit, charge, debit, and smart cardsPayments using cell phones

AdvertisingBannerStands out to the usersUsually positioned at the top middle of the pageMost expensiveSidebarAble to put detailsPositioned at the left or right of the pagePop-up and Floating AdsForce users to click to close the adsUsers often misclick and forced to open the link

Advertising (Contd.)

Advertising: tarad.com

Advertising: manager.co.th

Banner SizeBaht/WeekBaht/MonthA1 (728x90 Pixels)Impression onlyA2 (728x90 Pixels)30,000108,000B1 (300x250 Pixels)60,000216,000B2 (300x250 Pixels)55,000198,000B3 (300x250 Pixels)55,000198,000B4 (300x250 Pixels)55,000198,000C1 (180x150 Pixels)30,000108,000C2 (180x150 Pixels)25,00090,000C3 (180x150 Pixels)20,00072,000C4 (180x150 Pixels)20,00072,000D (300x110 Pixels)60,000216,000

Advertising: bloggang.com

Advertising: dek-d.com

Pay Per ClickAn Internet advertising model used on search engines, advertising networks, and content sitesAdvertisers typically bid on keyword phrases relevant to their target market

Pay Per Click (Contd.)PPC search enginesAsk.com Baidu.com Business.com GoogleLooksmart MSN/Live Search (Microsoft adCenter) Yahoo! (Yahoo! Search Marketing)

Google AdsGoogle AdWordsFor advertisersThe advertisers are charged only if someone clicks the ad, not when the ad is displayedActivation fee: 200.00 BahtMinimum cost per click (CPC): 0.35 BahtMinimum cost per thousand impressions (CPM): 10.00 Baht

Google Ads (Contd.)Google AdSenseFor site ownersDisplay targeted Google ads on the web pages and earn from valid clicks or impressionsAvailable for contents, search, mobile content, feeds, video, domains, and mobile applicationsEarnings:CPC ads: Site owners earn when the users click on the adsCPM ads: Site owners earn when the ad appears to a user viewing the site

Web StatisticsCollect informationVisitors, time of visits, time spent, origins, browsers, etcShape the business strategies

Web Statistics (Contd.)Google AnalyticsExecutive summaryE-commerce summaryConversion summaryMarketing summaryContent summaryMarketing optimisationContent optimisation

In-Class Assignment

Creative ThinkingForm into a group of 5 personsDiscuss how can the following emerging information technology be used to improve supply chain management and logisticsCloud computingAugmented realitySocial networking Five minutes presentation