Kip Becker, Ph.D. Boston University Introduction to the World Wide Web GOGLOBAL@BU.EDU HTTP://WWW.BU.EDU/GOGLOBAL
E-commerce Interactions Technology: Development and mastery of digital computing and communications technology Business: New technologies present businesses and entrepreneurs with new ways of organizing production and transacting business Society: Intellectual property, individual privacy, and public policy
WHAT ARE SOME NEW ECONOMYCONCEPTS Consumers Rule Information cost low Information Available Compete in real time rather than in cycle time Operate in a world characterized by low barriers to entry, near-zero variable costs of operation and shifting competition Large is no longer scary
ANYWHERE - ANYTIME
Technology-mediated exchanges between parties WEBONOMICS Electronically-based intra- or interorganizational activities that facilitate such exchanges LETS TAKE A LOOK AT DIFERENT ATTRIBUTES
IN GROUPS IS EBUSINESS A BRIDGE FROM OLD WAY OF BUSINESS TO NEW OR JUST ANOTHER TOOL?
ECommerce Transaction types business -to- business -to- business - to - Individual - to- Customer -to- Customer -to- Peer -to- business customer government government business customer peer
P2P HAS HAD ACCEPTANCE PROBLEMS Legitimated VS. Pirated music sales, 2006 Pirated 40% Legitimate 60%
A VERY BRIEF HISTORY Internet s beginnings traced to memos written in 1962 MIT s Joseph Carl Robnett Licklider outlining the galactic networking concept Great advances made in network technology 1960s To connect computers &permit transfer of information locally, many organizations installed Local Area Networks. LAN technology limited distance To allow computers and networks separated by larger distance to communicate ARPA (Advanced Research Projects Agency) developed a Wide Area Network (WAN) called the ARPANET (WHY DO THIS?)
THE WEB PROGRESSES 1989 1991: Web invented - Tim Berners- Lee at CERN 1993: Marc Andreesen /Others at NCSA create Mosaic, Web browser with GUI that runs on Windows, Macintosh, or Unix 1994: Andreessen, Jim Clark found Netscape; create first commercial Web browser, Netscape Navigator August 1995: Microsoft introduces Internet Explorer, its version of Web browser Lets take a look at some of the early players
Communication Formats similar Development WWW Like internet radio began as communication medium Really the first WWW Early medium known as wireless telegraphy/ telephony; radio s point-to-point wireless messaging ARMY CONTROL Demand for radio broadcasting surged in 1922 - shifted from a point-to-point communication tool to broadcast medium During 1920s, all 48 states in the US had at least one radio station By 1925, 27 of the original 48 stations were out of business Revenue sources such as programming subsides from radio-set sales, radio taxes, generalized goodwill for corporate sponsors and advertising emerged as new revenue generation models The pay for service revenue model allowed radio to compete with telegraph and cut the price of telegraph by 30% FAMILIAR? BUT THEN WHAT HAPPENED?
Radio Stations Opened and Closed, 1921-24 NOT ONLY THE DOT COM S HAD DIFFICULTIES 100 Stations Opened Stations Closed 75 50 25 0 21-Sep 22-Feb 22-Jul 22-Dec 23-May 23-Oct 24-Mar 24-Aug 1912 Titanic WW1 US Navy rights to airwaves 1919 RCA - Revenue Model 1922 576 stations - open to all - By 1925? Source: Hanson, Ward. The Original WWW: Web Lessons from the Early Days of Radio. 7/15/96. 2
IN 90S The Web Got Ahead of Itself BUT first quarter of 2001, online sales only about 1 percent of all retail sales WHAT ARE SOME REASONS why Americans weren t ready to do more Web business: Poor service and high prices Too much to choose from Inconsistent technology
ORGANIZED CHAOS NETWORKS TO NETWORKS THE INTERNET OR INFRASTRUCTURE Who Runs It? How does it Run?
DIGITAL INFRASTRUCTURE If you were to design a system that allows computers to interrelate What is necessary? Infrastructure? Communications?
EC CONNECTIONS 1. A global networked environment is known as the Internet 2. A counterpart within organizations, is called an Intranet 3. An extranet extends intranets so that they can be accessed by business partners. Is INTERNET and W3 same thing?
Interorganizational Systems Electronic data interchange (EDI) over Value Added Networks (VANs) Electronic funds transfer (EFT) Integrated messaging systems Electronically-supported supply chain management Even Local Small Business (NPR _ farmers)
E-commerce Revenue--- Traditional EDI and Internet -- Actual and Forecast 40000 35000 30000 25000 20000 15000 10000 Electronic Commerce Professional Services Internet Commerce Apps EDI Softw are and Services 5000 0 1997 1998 E 1999 E 2000 E 2001 E 2002 E
What are Characteristics allow shared access of data 1. Unique identification each computer network of millions of computers - thousands networks.. Important each computer be uniquely identified Internet Protocol(IP) address. 198.108.95.145 2. Human-friendly addressing Domain Name System(DNS) gave address recognizable letters & words instead of IP address. http://www.bu.edu/goglobal 3. Packet Switching Remedy delays associated unequally sized data transfers, instead of transferring files in their entirety, whole files broken into data packets before transferred over network 4. Routing Dedicated, special-purpose computers which serve as an intermediary between networks. Route packets efficiently through networks and are building blocks of the internet. Packets used TCP software insures safe delivery of packets
TCP Standardization Networking technologies are not inherently compatible. Before the development of internetworking technology an organization with networks had two options: One Alternative- allow groups to have network technology best suited to them, which was not flexible Other alternative have a standard nerdsoninternet
ONE OF THE MOST IMPORTANT PROTOCOLS TCP/IP Solves the global internetworking problem Transmission Control Protocol (TCP) Ensures that 2 computers can communicate with one another in a reliable fashion Internet Protocol (IP) Formats the packets and assigns addresses packets are labeled with the addresses of the sending and receiving computers
Prevents loss of data Checks packets Functions of TCP/IP Eliminates duplicate packets Sends confirmation when the packet is received If confirmation is not received, then the packet is retransmitted Enables reliable and error-free communication over the net
Internet Protocols A set of rules that determine how two computers communicate with one another over a network The protocols embody a series of design principles Inter-operable operable the system supports computers and software from Protocols - A set of rules that determine how two computers different vendors. For e-commerce this means that the customers or businesses are not required to buy specific systems in order to conduct business. Layered the collection of Internet protocols work in layers with each layer building on the layers at lower levels. Simple each of the layers in the architecture provides only a few functions or operations. This means that application programmers are hidden from the complexities of the underlying hardware. End-to to-end the Internet is based on end-to-end protocols. This means that the interpretation of the data happens at the application layer and not at the network layers. It s much like the post office.
NETWORK OF NETWORKS WHAT CONSITITUTES THE NETWORKS? NSPs BACKBONE NETWORK SERVICE PROVIDERS\ MCI, PSINET ETC. NAPs NETWORK ACCESS POINTS/ PACIFIC BELL NAP IN SANFRANCISCO & AMERITEC NAP CHICAGO ISPs INTERNET SERVICE PROVIDERS EXCHANGE DATA NSPs AT NAPs ROUTERS MAPS TO INTERNET FOR PACKETS TO FOLLOW/ CISCO MAJOR PROVIDER OF HIGH SPEED ROUTERS
Internet Network Architecture Backbone NSPs ISP ISP ISP you ISP ISP NAP NAP NAP NAP ISP ISP ISP ISP ISP 5
2001: Jan 30 Egypt lost 70% + ½ western India's outbound crashed downing outsourcing industry. 75m from Algeria to Bangladesh disrupted or cut off. Feb 1 Cable cut west of Dubai Middle East service again severly disrupted.
Warriors of the WEB
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