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Chapter 6. Contemporary Information Systems Issues

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    August 2018
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Electronic Commerce and the Internet Chapter 6 Chapter Objectives • Describe what the Internet is and how it works • Explain packet-switching and TCP/IP • Describe basic Internet services and the World Wide Web • Explain the differences between – Internet-based electronic commerce – Intranet-based electronic commerce – Extranet-based electronic commerce The Internet • A worldwide network of networks • Uses a common protocol to communicate • Not owned by a single person, organization, or country Growth in Internet Servers What You Will Find on the Internet • Information – Text, video, audio, graphics – Databases, technical services, software • People – Electronic mail – Newsgroups How Does the Internet Work? • • • • • Packet-Switching Technology Connecting Independent Networks TCP/IP Internet Services The World Wide Web Packet-Switching Technology • Data sent in small standard sized chunks called “packets” • Packets have headers with addresses of sending and receiving computers • Users take turns sending packets • Packets reassembled by the receiver Packet Switching Connecting Independent Networks • Router: fundamental building block of the Internet – Has a processor, memory, and network interface – Has no software – Connects LANs to backbone WANs – Forwards packets from one network to another – Determines best routes for packets to travel TCP/IP • Transmission Control Protocol – Breaks information into data packets – Reassembles packets when received – Checks for lost packets • Internet Protocol – Each computer given a unique IP address – User name and IP address separated by @ • [email protected] Routers Enable Different Paths between Networks Internet Services • E-Mail • Telnet • File Transfer Protocol (FTP) • Listserv • • • • Usenet Archie WAIS Gopher The World Wide Web • The most powerful Internet tool • Accessed via a Browser – A simple user-friendly interface • Web pages – Identified by a URL (Uniform Resource Locator) – Created with Hypertext Markup Language – Use hypertext to link to other pages Technologies Enabling Internet Communication • ISDN (Integrated Services Digital Network) – International standard for digital data communications – Uses existing twisted pair cable • T1 Service – Leased lines from long-distance carriers • ATM (Asynchronous Transfer Mode) – Method of transmitting voice, video, and data over high speed LANs Electronic Commerce • The on-line exchange of goods, services, and money • It has no geographical or time limitations • EDI available for over a decade • Internet based transactions overtaking EDI A Model of Electronic Commerce Three Modes of Electronic Commerce Exploiting Internet-based Electronic Commerce • New rules of electronic commerce – Web site must be aesthetically pleasing – Web site must be easy to use and fast – Web site must motivate people to visit, stay, and return – Advertise your presence on the Web – Learn from your Web site Intranets as First Step into Electronic Commerce • Using the Internet for internal operations • Unwanted users blocked from entry • Reasons for popularity – Provides inexpensive, quick, international telecommunications infrastructure – Improves product/service quality and decreases costs and cycle time – Is a wise intermediate step in preparing for full electronic commerce From EDI to Internet-based Extranets • Using the Internet to support dealings with other firms • Trend toward Extranets rather than EDI