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Chapter 7 E-Commerce: The Internet, Intranets, and Extranets Learning Objectives When you finish this chapter, you will Know what the Internet is. Know the features for information exchange that can be conducted over the World Wide Web.

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Chapter 7 e commerce the internet intranets and extranets l.jpg

Chapter 7E-Commerce: The Internet, Intranets, and Extranets

Management Information Systems, 3rd Edition

Effy Oz


Learning objectives l.jpg

Learning Objectives

  • When you finish this chapter, you will

    • Know what the Internet is.

    • Know the features for information exchange that can be conducted over the World Wide Web.

    • Understand how the Web facilitates electronic commerce.

    • Be able to generate basic ideas for new business ventures utilizing the Web.

    • Appreciate the major risks and limitations of using the Web for business activities.

Management Information Systems, 3rd Edition

Effy Oz


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What is the Internet?

  • The Development of the Internet

    • ARPANET was an open system designed for the free flow of information, but available only to members of academic institutions and some in the defense industry.

    • U.S. government decided to split the network into a civilian one and a military one.

      • Civilian network became the Internet

    • Internet is now a network of networks.

Management Information Systems, 3rd Edition

Effy Oz


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Figure 7.1 The Internet connects millions of servers.

What is the Internet?

Management Information Systems, 3rd Edition

Effy Oz


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What is the Internet?

  • Growth of the Internet

    • Number of servers

      • From a few hundred in 1991, to more than 115,000,000 by mid-2000

    • Number of users

      • More than 200 million; increased rapidly during 1999

  • Commercial Online Services

    • Companies like America Online provide “online” service to paying subscribers on their private networks.

Management Information Systems, 3rd Edition

Effy Oz


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Figure 7.2 World growth of the Internet

What is the Internet?

Management Information Systems, 3rd Edition

Effy Oz


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Figure 7.3 The number of Internet domain servers continues to grow

What is the Internet?

Management Information Systems, 3rd Edition

Effy Oz


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Internet Domains

  • A domain name is assigned to each IP address.

  • Domain names are registered by one of a group of companies authorized to assign unique names.

Management Information Systems, 3rd Edition

Effy Oz


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Internet Domains

  • What’s on the Internet?

    • E-mail and file transfer

    • News groups

    • Internet Relay Chat (IRC)

    • Telephoning on the Web

Management Information Systems, 3rd Edition

Effy Oz


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The World Wide Web

  • Hypertext transfer protocol (HTTP)

    • Allows shared communication of text, full-color graphics, tables, forms, video, and animation

  • Hypertext Mark-Up Language (HTML)

    • Code for tagging Web files for display

  • Browsers

    • Software to access the Web

Management Information Systems, 3rd Edition

Effy Oz


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The World Wide Web

  • Creating Web Files

    • HTML

      • System of standardized “tags” that format elements text, graphics, and animation

    • Web page editors

      • Translate well-known or intuitive commands into code

    • Java, ActiveX, and XML

      • Web scripting languages

    • Common Gateway Interfaces (CGI) and Forms

      • Allow a computer that is accessing a particular Web site to have some similar functions

Management Information Systems, 3rd Edition

Effy Oz


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Figure 7.6 How a CGI works

The World Wide Web

Management Information Systems, 3rd Edition

Effy Oz


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The World Wide Web

  • Frames

    • Sections of a Web page that let a browser explore a site in different ways on the same page

  • VRML (Virtual Reality Modeling Language)

    • Standard for describing interactive three-dimensional scenes delivered across the Internet

  • Cookies

    • Special file a Web site saves on the surfer’s hard disk so the site can remember something about the surfer later

  • Creating Your Own Web Pages

    • Search the Web for HTML tutorials

    • View and study the source document of a Web page

Management Information Systems, 3rd Edition

Effy Oz


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Intranets and Extranets

  • Intranet

    • A within-organization computer network that uses Internet technologies to communicate

  • Extranet

    • Uses Internet technologies to facilitate communication and trade between an organization and its business partners, such as suppliers

Management Information Systems, 3rd Edition

Effy Oz


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Figure 7.7 An intranet, an extranet, and the Internet from an individual user’s perspective

Intranets and Extranets

Management Information Systems, 3rd Edition

Effy Oz


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Figure 7.8 Internet, intranet, and extranet potential for productivity enhancement

Intranets and Extranets

Management Information Systems, 3rd Edition

Effy Oz


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Establishing a Web Site

  • Site Name

  • Points of Presence

  • Line Capacity

  • Site Maintenance

Management Information Systems, 3rd Edition

Effy Oz


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Business on the Internet

  • Business-to-Business Trading

  • Electronic Data Interchange

  • Exchanges and Auctions

    • E-catalogs

Management Information Systems, 3rd Edition

Effy Oz


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Business on the Internet

  • Business-to-Consumer Trading

    • Advertising

      • Portals

      • Free Internet applications

    • E-Shopping

      • E-Payment

      • Auctions and reverse auctions

      • Selling content

      • Selling software

      • Data push

      • Stock trading for all

Management Information Systems, 3rd Edition

Effy Oz


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Figure 7.14 Web-shopping benefits

Business on the Internet

Management Information Systems, 3rd Edition

Effy Oz


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Business Considerations

  • Web Costs

    • The least costly sites are those constructed simply to showcase the company’s products or services.

    • The most expensive sites are those designed to enable electronic commerce.

Management Information Systems, 3rd Edition

Effy Oz


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Figure 7.16 Do’s and Don’ts in

Web site construction for commercial purposes

Business Considerations

Management Information Systems, 3rd Edition

Effy Oz


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Business Considerations

  • Risks to Organizations

    • Computer viruses

    • Interception of passwords and codes by an unauthorized hacker

    • Interception of charge account numbers

    • Illegal or socially objectionable use of a site

    • Potential misrepresentation

Management Information Systems, 3rd Edition

Effy Oz


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Business Considerations

  • Risks to Consumers

    • Eavesdropping and interception

    • Misrepresentation

Management Information Systems, 3rd Edition

Effy Oz


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The Nations:Who is on the Net?

  • While the U.S. is leading in developing new technologies for the Net, other nations are not far behind.

    • Finland has the highest ratio of Internet servers to users.

    • Israeli companies are heavily involved in developing high-quality Internet phone software.

    • Singapore’s government has invested over $2 billion in state-of-the-art technology infrastructure.

Management Information Systems, 3rd Edition

Effy Oz


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Ethical and Societal IssuesRoad Bumps on the Electronic Superhighway

  • Free Speech

    • From the advent of the Web, ‘inappropriate’ material has been posted and disseminated throughout the world.

    • There have been calls to sensor what is transmitted, especially pornography, violence, and racial slurs.

  • Spamming

    • Flooding a party’s e-mail box with messages as a means of protest is disruptive.

  • Management Information Systems, 3rd Edition

    Effy Oz


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