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Internet and E-Commerce
History of the Internet
Components of the Internet
Transmission Control Protocol (TCP) Transport-layer protocol that most Internet applications
use with IP Backbone
One of the Internet’s high-speed, long-distance communications links
Uniform Resource Locator (URL) An assigned address on the Internet for each computer
Domain Name System
IP addresses are difficult to remember and use With 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 names Has authority to resolve domain name disputes
Cyber-squatters Register domain names in the hope of selling
them to corporations or people
Uniform Resource Locators
A 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 Issues
The 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 reasons Whose 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 Scandal
Source of pictures iCloud
Security flaw Find My iPhone
How? The application allows users to input password as many
times as they want The hacker(s) used “brute force” password hacking
Results Private 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 Web
Collection of tens of millions of server computers that work together as one in an Internet
Hyperlink Highlighted text or graphics in a Web document that,
when clicked, opens a new Web page Web browser
Web 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 pages
HTML tags Let the browser know how to format text
Extensible Markup Language (XML) Markup language for Web documents containing
structured information Cascading Style Sheet (CSS)
File or portion of an HTML file that defines the visual appearance of content in a Web page
Web Programming Languages
Java HTML5 Other platforms
Asynchronous JavaScript and XML (AJAX) Hypertext Preprocessor (PHP) Adobe Flash, Microsoft Silverlight, IBM Worklight
Sample HTML5 Websites
The Wilderness Downtown http://www.thewildernessdowntown.com/
Heart of the Attic http://heartofthearctic.ca/
Three Dreams of Black http://www.ro.me/
Enjoy Your Privacy http://www.enjoyyourprivacy.com/
Google Play Music Tour http://play.google.com/about/music/tour/
Source: http://www.ebizmba.com/articles/best-html5-websites
Content Management Systems
An emerging technology to help customizing web sites Joomla Wordpress Drupal
Content Management Systems (Contd.)
Internet and Web Applications
Search engines and Web research Search engines
Have become important to businesses as a tool to drive visitors to the business’ Web site
Search Engine Optimization (SEO) has become a valuable marketing tool
Real-time search will be a future for search engines
Sample Services from Google
Services What It Does
Code Tools and resources for developers
Docs Cloud office
Images Search for images on the web
Maps View maps and get directions
News News stories
Translate Language translation
Scholar Search through academic articles
Shopping Find the best deal on consumer products
Text messages Sound, images & videos Files
Instant Messaging
Online, real-time communication between two or more people who are connected to the Internet
Can share files and other activities
Instant Expressions and Abbreviations
Expressions ;-) ;-( :-# :-D :-0 :-@ :-& orz
Abbreviations AFK BRB BTW IMHO LOL OIC TY OMGWTFBYOBBQ InW
Leet Language
Also known as “leetspeak” It uses various combinations of ASCII
characters to replace letters.
1f u c4n r34d th1s u r3411y n33d t0 g37 141d
Internet Phone and Videoconferencing Services
Internet phone service Relatively inexpensive, especially for international calls
Voice-over-IP (VoIP) technology Network managers can route phone calls and fax
transmissions over the same network they use for data Internet videoconferencing
Supports both voice and visual communications
Skype
Google Hangout
Social Networks
Facebook, Google+ Social networking platform Social application Authentication system Media sharing PR, CRM & Advertising
Twitter News sharing PR, CRM & Advertising
Google+
Age Distribution on Social NetworkSo
urce
: Goo
gle
Ad P
lann
er (2
010)
Media Sharing
YouTube Video sharing Marketing
Instagram, Flickr, Shutterfly Photo sharing
Getty Images, Shutterstock Photo stocking
YouTube
Flickr
Shutterstock
File Sharing
Allow people to share files in P2P mod Bittorent
Bittorent
Social Bookmarking
Purpose To provide a view of the most popular Web sites,
videos, blog articles, or other Web content at any given moment
Popular social bookmarking sites delicious.com Digg
delicious.com
Digg
Web Auctions
Web auction A way to connect buyers and sellers
eBay Popular auction site Easy to use and includes thousands of products and
services in many categories Auction sites
Cannot always determine whether the people and companies listing products and services are legitimate
eBay
Music, Radio, Video, and TV on the Internet
Radio broadcasts are now available on the Internet
Video and TV are also becoming available Internet Protocol Television (IPTV) protocol
Used to put TV programming on the Internet
Office on the Web
Internet office Web site that contains files, phone numbers, e-
mail addresses, an appointment calendar, and more
Allows your desktop computer, phone books, appointment schedulers, and other important information to be with you wherever you are
Google Drive
Internet Storage
Allow users to store, retrieve and manipulate files in the “cloud”.
Popular internet storages Dropbox SugarSynchttp://dl.dropbox.com/u/1621542/03%20-
%20Internet%20and%20E-Commerce.ppt
Dropbox
Wikis
A wiki is a website that allows the easy creation and editing of any number of interlinked Web pages
WYSIWYG
Wikipedia
Global Internet Traffic
Online Language Populations
Using Internet for Business Process Improvement
Marketing Manufacturing Investment and finance
Internet for BPI: Marketing
Market segmentation Identification of specific markets to target them
with advertising messages Technology-enabled relationship
management Use of detailed information about a customer’s
behavior, preferences, needs, and buying patterns to customize the entire relationship with that customer
Internet for BPI : Manufacturing
Electronic exchange Electronic forum where manufacturers, suppliers,
and competitors buy and sell goods, trade market information, and run back-office operations
Business center is not a physical building but a network-based location where business interactions occur
Internet for BPI : Investment and Finance
The Internet Has revolutionized the world of investment and
finance Electronic bill presentment
Eliminates all paper, down to the bill itself
e-Commerce
Electronic Commerce
Conducting business activities electronically over computer networks
Business activities that are strong candidates for conversion to e-commerce Paper based Time-consuming Inconvenient for customers
Traditional VS Online Commerce
Source: http://www.cirrusabs.com
Benefits of e-Commerce
Increase sales and profits Decrease costs Expand the size of the market Increase productivity Improve customer services Market equity Accessibility to market
Modes of e-Commerce
B2B B2C C2C
Business-to-Business (B2B) e-Commerce
Subset of e-commerce All the participants are organizations Useful tool for connecting business partners in
a virtual supply chain to cut resupply times and reduce costs
Business-to-Consumer (B2C) e-Commerce
Form of e-commerce in which customers deal directly with an organization and avoid intermediaries
Disintermediation The elimination of intermediate organizations
between the producer and the consumer
Consumer-to-Consumer (C2C) e-Commerce
Subset of e-commerce that involves consumers selling directly to other consumers
Popular sites Bidzcom, Craigslist, eBid ePier, Ibidfree, Ubid, and Tradus
Highly popular among college students
e-Government
Use of information and communications technology to Simplify the sharing of information Speed formerly paper-based processes Improve the relationship between citizen and
government
e-Government (Contd.)
Forms of e-Government Government-to-consumer (G2C) Government-to-business (G2B) Government-to-government (G2G) Government-to-employee (G2E)
Example of e-Government applications e-Auction
UN e-Government Survey 2014
e-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 capacity
70. 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 Management
Involves managing every aspect of an organization’s interactions with its customers or clients including Marketing and advertising Sales Customer service after the sale Programs to retain loyal customers
e-Commerce Challenges
Defining an effective e-commerce model and strategy
Dealing with consumer privacy concerns Overcoming consumers’ lack of trust Security of transactions
Global Challenges for e-Commerce
Cultural challenges Language challenges Time and distance challenges Infrastructure challenges Currency challenges Product and service challenges State, regional, and national laws
Technical Limitations
Costs of a technological solution Unfamiliar protocols Reliability Insufficient bandwidth Evolution of software tools Limitation of internet accessibility
Some Preliminary Cautions for e-Commerce
Unrealistic expectations Inappropriate application Incomplete installation
Establishing an E-Commerce
Strategies for Successful E-Commerce
Companies must develop effective Web sites that include the following characteristics: Easy to use Accomplish the goals of the company Safe and secure Affordable to set up and maintain High accessibility
Defining the Web Site Functions
Decide which tasks the site must accomplish Create an attractive presence for the company Meet the needs of its visitors
Example: Obtaining information about the organization and its products
Redefining your site’s basic business model to capture new business opportunities
Establishing a Web Site
Web site hosting companies Allow you to set up a Web page and conduct e-
commerce within a matter of days Little up-front cost
Storefront broker Company that acts as an intermediary between
your Web site and online merchants who have the products and retail expertise
Building Traffic to Your Web Site
Obtain and register a domain name Make your site search-engine-friendly Include a meta tag in your store’s home page Use Web site traffic data analysis software Provide quality, keyword-rich content
Customer Behaviour
The way people find products & informationLinks from other sites 88%
Search engines 82%
Printed media 63%
Word of mouth 58%
Email 48%
Newsgroups 32%
Television 32%
Books 28%Source: Marketing Sherpa, 2005
Search Engine Statistics
Source: ClickyMedia, http://www.clicky.co.uk/, 2014
Search Engine Attraction Techniques
Put keywords on your page title <TITLE> Put and bold keywords on your content <B> Name and describe your pictures <ALT> Create a site map Avoid the use of flash Avoid the use of frameset Encourage link exchangeSource: www.seo.in.th
Top Global Internet Browsers
Source: Softpedia, Jan 2014
Maintaining and Improving Your Web Site
Personalization Tailoring Web pages to specifically target
individual consumers Explicit personalization
Captures user-provided information Implicit personalization
Captures data from customer Web sessions
Hardware
Storage capacity and computing power required of the Web server depends on: Software that will run on the server Volume of e-commerce transactions
Key decision facing new e-commerce companies Whether to host their own Web site or to let
someone else do it
Web Server Software
Security and identification Retrieving and sending Web pages Web site tracking Web site development Web page construction
e-Commerce Software
Catalog management Product configuration Shopping cart Web services
Electronic Payment Systems
Digital certificate Attachment to an e-mail message or data embedded in a Web site
that verifies the identity of a sender or Web site Certificate authority (CA)
Trusted third-party organization or company that issues digital certificates
Secure Sockets Layer (SSL) Electronic cash Credit, charge, debit, and smart cards Payments using cell phones
Advertising
Banner Stands out to the users Usually positioned at the top middle of the page Most expensive
Sidebar Able to put details Positioned at the left or right of the page
Pop-up and Floating Ads Force users to click to close the ads Users often misclick and forced to open the link
Advertising (Contd.)
PrimaryContent
Warm Warm ColdNavigation Bar
Warm
Cold
Page Footer
ColdWarm
Hot
Hot
Hot
Hot
Warm
Warm
Advertising: tarad.com
Advertising: manager.co.th
Banner Size Baht/Week Baht/Month
A1 (728x90 Pixels) Impression only
A2 (728x90 Pixels) 30,000 108,000
B1 (300x250 Pixels) 60,000 216,000
B2 (300x250 Pixels) 55,000 198,000
B3 (300x250 Pixels) 55,000 198,000
B4 (300x250 Pixels) 55,000 198,000
C1 (180x150 Pixels) 30,000 108,000
C2 (180x150 Pixels) 25,000 90,000
C3 (180x150 Pixels) 20,000 72,000
C4 (180x150 Pixels) 20,000 72,000
D (300x110 Pixels) 60,000 216,000
Advertising: bloggang.com
Advertising: dek-d.com
Pay Per Click
An Internet advertising model used on search engines, advertising networks, and content sites
Advertisers typically bid on keyword phrases relevant to their target market
Pay Per Click (Contd.)
PPC search engines Ask.com Baidu.com Business.com Google Looksmart MSN/Live Search (Microsoft adCenter) Yahoo! (Yahoo! Search Marketing)
Google Ads
Google AdWords For advertisers The advertisers are charged only if someone clicks the ad,
not when the ad is displayed Activation fee: 200.00 Baht Minimum cost per click (CPC): 0.35 Baht Minimum cost per thousand impressions (CPM): 10.00 Baht
Google Ads (Contd.)
Google AdSense For site owners Display targeted Google ads on the web pages and earn fr
om valid clicks or impressions Available for contents, search, mobile content, feeds,
video, domains, and mobile applications Earnings:
CPC ads: Site owners earn when the users click on the ads CPM ads: Site owners earn when the ad appears to a user viewing
the site
Web Statistics
Collect information Visitors, time of visits, time spent, origins,
browsers, etc Shape the business strategies
Web Statistics (Contd.)
Google Analytics Executive summary E-commerce summary Conversion summary Marketing summary Content summary Marketing optimisation Content optimisation
In-Class Assignment
Creative Thinking
Form into a group of 5 persons Discuss how can the following emerging
information technology be used to improve supply chain management and logistics Cloud computing Augmented reality Social networking
Five minutes presentation
