Chapter 8.
INTERNET
Computer Technology
Information Tecnology Faculty UAZ
OBJECTIVE
General Objective:
Evaluate the use of the Internet
from a data communications and a
business applications viewpoint
with strong emphasis on its use in
e-Commerce
Detailed Objectives
Define the Internet and describe in outline its
historical development
Show how the Internet is based on underlying
communication protocols
Evaluate at least three different business models for
the application of the Internet in business
Evaluate possible directions in which e-commerce
is likely to develop
Internet
Definition
Internet an internet is a collection of networks
interconnected by computers
An internet (lowercase i) is a way of connecting
networks
The Internet (capital I) is an example of an internet
in fact the only example that really matters in our
discussion
Internet History
1960s
Computer scientists research techniques to connect
systems on a shared network
1969
ARPANET (DoD Advanced Research Project
Agency) connects UCLA, University of California
at Santa Barbara, University of Utah, and Stanford
Research Institute
Internet History
1975
Management of the Internet is transferred to the U.S.
Defence Communications Agency
1979
USENET begins offering its worldwide broadcast
conferencing system of newsgroups
Internet History
1981
BITNET (Because It's Time Network) begins offering email and list servers for information distribution. CSNET
(Computer Science Network) offers dial-up service for email. People can now access the Internet using desktop
computers
1982
TCP/IP (Transmission Control Protocol/Internet Protocol)
becomes the standard for network communications on
ARPANET
Internet History
1983
MILNET and DDN (Defence Data Network) split off
from ARPANET.
1984
The Domain Name Server (DNS) system is
introduced.
1986
The Cleveland FreeNet starts operation.
Internet History
1987
The National Science Foundation (NSF) signs a
$14 million, five-year agreement with IBM,
MCI, and the Michigan Educational Research
Information Triad to manage the network.
1988
Robert Morris, Jr. releases a "worm" into the
Internet. Many computers grind to a halt.
Internet History
1990
CERN (the European Particle Physics Laboratory in
Switzerland) develops the World Wide Web.
1991
NSF lifts the restrictions against commercial use of
the Internet. DoDDS starts using CC:Mail.
Internet History
1992
Congress establishes the National Research and
Education Network (NREN) as a vision of a
national network to serve the educational and
research communities. NREN has not been funded
1993
President Clinton becomes the first head of state to
use the Internet for electronic messaging. His
address is [email protected]
Internet History
1994
Digital video and audio transmit over the Internet.
1995
The DoDDS schools in Okinawa establish Internet
connections.
Internet in business
Electronic commerce (e-commerce) is doing
business online
Using the power of digital information to
understand the needs and preferences of each
customer and each partner to customize
products and services for them, and then to
deliver the products and services as quickly
as possible
E-Business Models
An e-business model is simply the approach
a company takes to become a profitable
business on the Internet
Business models:
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Business-to-Employee (B2E)
Consumer-to-Consumer (C2C)
Consumer-to-Business (C2B)
E-Business Models
Business-to-Consumer (B2C)
Involves customer-oriented processes: online
catalogs, shopping cart schemes, and payment
authorization schemes.
Example: amazon.com, 911gifts.com
RedEnvelope Gifts Inc., launched in 1997 as
911gifts.com, began as a last-minute gift site,
but now markets more than 5,000 items that are
unique to the site
Business to Business
(B2B)
Internet brings together people, governments, and
businesses and facilitate the flow of information
among them
Example: automatic inventory reordering and the
exchange of electronic documents (purchase
orders, invoices, and so on)
B2B may integrate EDI (Electronic Data
Interchange)
Example: buyerzone.com, busytrade.com,
ec21.com
Business-to-Employee (B2E)
A B2E system is part way between a B2C system and a
B2B system. It has many of the facets of a B2C system
(web user interface, mix of information and
functionality) but differs in audience and mechanisms.
The audience for a B2E system is fixed as a set of
employees in another company.
AKA: e-procurement system, B2B collaboration,
extranet
Example: Microsoft's MS Market e-procurement
system
Consumer-to-Consumer (C2C)
A C2C site is primarily intended to facilitate interaction
between customers or users who wish to exchange
information, data, or goods and services (auction sites).
These sites will tend to use web front ends, or small
applications with extended functionality that enable
specific types of exchange over Internet protocols.
AKA: auction site, peer-to-peer (in some guises)
Examples: www.friendsreunited.com,
www.napster.com, www.ebay.com
Consumer-to-Business (C2B)
A C2B site lets customers club together and create a
demand for a particular product or service at a
particular price. This need can then be filled by a
supplier willing to meet that price. Again, a web
front end is the usual way of accessing such sites.
AKA: reverse auction site
Example: www.letsbuyit.com
