THE INTERNET

• It began as government connection of universities.

• Internet service provider (ISP): Organization that has a permanent connection to the Internet and sells (leases) temporary connections to subscribers.

• No one owns it, no formal organization owns it. There is no no formal central control.

• It is based on the TCP/IP reference model.

INTERNET CAPABILITIES• E -MAIL: person -to-person messaging; document sharing• USERNET NEWSGROUPS: Worldwide discussion groups.

People can post messages on any topic on an electronic bulletin boards for discussion groups.

• LISTSERVs: If you find any LISTSERV topic interesting, you can subscribe. From then on, you will get all information about this topic through e-mail.

• CHATTING: It allows interactive conversations• TELNET: It allows to log on one computer, work on another.• FTP: It allows to transfer files from computer to computer• GOPHERS: It allows user to locate information stored on Internet

gopher servers using menus.

INTERNET CAPABILITIES

• ARCHIE: Search database for files to download.• VERONICA: Veronica is an additional capability for

searching gopher sites by using keywords• WIDE AREA INFORMATION SERVICE (WAIS):

locates files using key words• WORLD WIDE WEB: retrieve, format, display

information (text, audio, graphics, video) using hypertext links

INTERNET ADDRESS

ggalileo@univpisa.edu.it

INDIVIDUAL OR INDIVIDUAL OR ORGANIZATION NAMEORGANIZATION NAME

HOST HOST COMPUTERCOMPUTER

LOCATIONLOCATION

DOMAINDOMAIN

DOMAIN NAME

INTERNET TERMS

• HOME PAGE: WWW screen display that welcomes the user and explains the organization.

• WEB SERVER: Web pages are stored in Web servers.

• WEBMASTER: person in charge of Web site• UNIFORM RESOURCE LOCATOR (URL): address

of specific Internet resource. Web sites have a unique Internet address (URL).

INTERNET TERMS

• HYPERTEXT TRANSPORT PROTOCOL (http): communications standard (sets of rules) used to transfer Web pages stored in Web servers.

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

SURFING THE NET

• SEARCH ENGINE: tool for locating specific sites or information on WWW. Examples: AltaVista & Lycos

• HYPERLINK: spot on screen, when clicked shifts to a new page or site.

INTRANET

• Internal network• WWW technology• Firewall: security system (consists of hardware and

software placed between an organization’s internal network and an external network, including the internet) to prevent invasion of private networks.

• Overcomes computer platform differences• Often installed on existing network infrastructure

EXTRANET

• It allows authorized users outside organization to use its intranet.

• Authorized users can be:Customersbusiness partnersvendors

EXTRANET

INTERNET

CUSTOMER

SUPPLIER FIREWALL

DATABASES

SERVER

CLIENTS

BUSINESSPARTNER

INTERNET BENEFITS

• Increases global connectivity

• Reduces communications cost

• Lower transaction costs

• Reduces agency costs, the cost managing employee and coordinating their work

• Increases interactivity, flexibility, customization

• Accelerates knowledge

INTERNET & ELECTRONIC COMMERCE

• Easy to link with other businesses, customers.

• Can update product information, ordering, customer support

• On-line storefronts

• Enhances business forms

INTERNET & ELECTRONIC COMMERCE

• CUSTOMER-CENTERED RETAILING– disintermediation: removal of intermediate layers

streamlines process– reduced cost to buyer, seller

• HIT: each request for a file recorded in log file

INTERNET & ELECTRONIC COMMERCE

• DISINTERMEDIATION

Manufacturer Distributor Retailer Customer

Cost/Shirt

$48.50

Manufacturer Distributor Retailer Customer

Manufacturer Distributor Retailer Customer

$40.34

$20.45

INTERNET BUSINESS MODELS

• VIRTUAL STOREFRONT: sells goods, services on-line

• MARKETPLACE CONCENTRATOR: concentrates information from several providers

• INFORMATION BROKER: provides product, pricing, availability information

INTERNET BUSINESS MODELS

• TRANSACTION BROKER: buyers view rates, terms from various sources

• ELECTRONIC CLEARINGHOUSE: auction-like setting, products, prices, change in response to demand

INTERNET BUSINESS MODELS

• DIGITAL PRODUCT DELIVERY: sell, download software, other digital products

• CONTENT PROVIDER: creates revenue through providing client for a fee, and advertising

• ON-LINE SERVICE PROVIDER: provides service, support for hardware, software products

ELECTRONIC COMMERCE SUPPORT SYSTEMS

• WEB HOSTING SERVICES: provides large servers for Web sites of fee-paying customer

• ELECTRONIC PAYMENT SYSTEM: using Web for electronic funds transfers, credit , smart & debit cards

INTRANETS AND ELECTRONIC BUSINESS

• Electronic commerce services

• Benefits

• Group collaboration

• Functional applications

• Supply chain management

ELECTRONIC COMMERCE SERVICES:• ICAT: on-line catalog shopping, order

placement (Icat)

• NET.COMMERCE: merchant server supporting Secure Electronic Transactions protocol (IBM)

• MERCHANT SERVER: templates for storefronts, point-of-sales software (Microsoft)

ELECTRONIC COMMERCE SERVICES:

• MERCHANT SYSTEM: full set of retailing services (Netscape)

• OM-TRANSACT: modular structure for payment schemes (Open Market)

• PC-CHARGE: PC-based Web server credit card processing (Go Software)

BENEFITS OF INTRANETS:

• Increases connectivity

• Can be tied to legacy system & transaction processing

• Interactive applications with text, audio, video

• Scalable to larger or smaller systems as required

BENEFITS OF INTRANETS:

• Easy to use browser interface

• Low start-up costs

• Rich, responsive information environment

• Reduced information distribution costs

GROUP COLLABORATION:

• teamware: intranet-based applications allow teams to share ideas, documents, brainstorming, scheduling. similar to chat room.

• Internal newsletter• Ability to work at home• Share internet discoveries with colleagues

FUNCTIONAL APPLICATIONS:

• Finance & accounting

• Human resources

• Sales & marketing

• Manufacturing & production

FINANCE & ACCOUNTING:

• General ledger reporting

• Project costing

• Annual reports

• Budgeting

HUMAN RESOURCES:

• Corporate policies

• Employee savings plans

• Benefits enrollment

• On-line training

• Job posting

SALES & MARKETING:

• Competitor analysis

• Price updates

• Promotional campaigns

• Sales presentations

• Sales contracts

MANUFACTURING & PRODUCTION:

• Quality measurements

• Maintenance schedules

• Design specifications

• Machine output

• Order tracking

SUPPLY-CHAIN MANAGEMENT

INTRANETINTRANET

PRODUCTIONPLANNING

PROCUREMENT

INVENTORY

PRODUCTION &MANUFACTURING

CUSTOMERSERVICE

ACCOUNTING &FINANCE

MARKETING& SALES

SHIPPING &DISTRIBUTION

CU

ST

OM

ER

S

CHALLENGES

• Unproven business models

• Business process change requirements

• Channel conflicts

• Technology hurdles

• Legal issues

• Security & privacy