1. INTRODUCTION 1. INTRODUCTION
Networks and Commercial Transactions – Internet and Other novelties Networks and Commercial Transactions – Internet and Other novelties –
– ElEl eectct rroonini c c TrTr anan ssacac ttiionon s s ToTo dday ay – – CoCo mmmmeerrcici al al TrTr anan ssacac ttiionon s s – – Est
Establablishishing ing TruTrust st – – IntInternernet et EnvEnviroironmnment ent – – IntInternernet et AdvAdvanantagtage e – – World Wide Web
World Wide Web Internet
Internet N
No o wwoorrlld d wwiidde e oorrggaanniizzaattiioon n rruunnnniinng g tthhe e IInntteerrnneett.. Rules have to be
Rules have to be followed which is defined by standard bodies.followed which is defined by standard bodies. Network
Network N
Neettwwoorrk k iis s aan n IInntteerrccoonnnneeccttiioon n oof f CCoompmp uutteerrss Commerce
Commerce C o
C om mm me re rc e c e i s i s a a d id iv iv is is io n o n o f o f tradetrade oor r p prroodduuccttiioonn w hw hi ci ch h d ed ea la ls s w iw it h t h t ht hee exchange
exchange oof f goodsgoods aanndd servicesservices fromfrom p prroodduucceer r t o t o f if in a ln a l consumer consumer . . IItt compr
comprises ises thethe tradingtrading o f o f s os om em et h it h in g n g o f o f econoeconomic mic valuvaluee s u cs u ch h a sa s goodsgoods,, services
services,, informationinformation oor r moneymoney b beettwweeeen n ttwwo o oor r mmoorre e eennttiittiieess.. E- Commerce
E- Commerce
The marketing buying and selling of products and services over electronic The marketing buying and selling of products and services over electronic systems such as the Internet and other
systems such as the Internet and other computer networkscomputer networks.. " E
" El el ec tc tr or on in ic c c oc om mm me re rc ec e" " o r o r " e" e- c- co mo mm em er cr ce " e " r er ef ef er s r s t o t o a la ll l c oc ommm em er cr ci ai all transactions in which one or more of the following stages are processed transactions in which one or more of the following stages are processed electronically:
electronically:
•
• advertising and product advertising and product promotionpromotion • • selectionselection • • orderingordering • • p paayymmeenntt • • deliverydelivery • • uussee
Dangers associated with
Dangers associated with electronic commerceelectronic commerce
One of the distinguishing features of e-commerce is use of the
One of the distinguishing features of e-commerce is use of the internet. Theinternet. The main problems can be broken
main problems can be broken down into three areas:down into three areas: Communication:
Communication:
In open networks communications can pass through many nodal points. The In open networks communications can pass through many nodal points. The user does not know how well messages are protected by other systems or user does not know how well messages are protected by other systems or network operators and there is a
network operators and there is a wide range of opportunities to read wide range of opportunities to read and/or and/or tamper with the
tamper with the communicaticommunication.on. Component security:
Component security:
All the components which are connected to the internet - whether a All the components which are connected to the internet - whether a u s
u se r e r P C P C o r o r a a r er et at ai li le re r' s ' s s es er vr ve r e r - - m um us t s t b e b e a da de qe qu au at et el y l y p rp ro to te ce ct et ed d a ga ga ia in sn stt p
poossssiibblle e aattttaacckkss, , iinncclluuddiinng g aaggaaiinnsst t llooccaal l aattttaacckkss. . TThhe e iinnsisi dderer s s aallsso o ccaauussee greatest danger to the company’s data for the reason of the personal gain. greatest danger to the company’s data for the reason of the personal gain. Establishment of identity
Establishment of identity:: A n
A no to th eh er r s es ec uc ur ir it y t y a sa sp ep ec t c t o f o f e -e -c oc om mm me re rc e c e s ys ys ts te me ms s i s i s t ht he e u n eu n eq uq ui vi vo co ca la l establishment of the identity of the persons one is communicating with. establishment of the identity of the persons one is communicating with. Similarly,
Similarly, it is it is easy to easy to falsify tfalsify the name he name that appearthat appears as ts as the sender he sender of an of an e- e-mail.
mail.
Therefore additional measures must be taken for mutual identification and Therefore additional measures must be taken for mutual identification and authentication.
authentication.
Benefits of
Benefits of e-commercee-commerce E-commer
E-commerce offers following benefits to ce offers following benefits to the companies:the companies:
•
• Reduction in cost due toReduction in cost due to
1 .
1 . C h eC h ea p ea p er I n tr I n te re rn e t pn e t pr ir ic e sc e s.. 2.
2. Less paLess paper worper work involk involved due to digived due to digitizattization of inforion of informatimation.on. 3.
3. ReusReusing the digiting the digitized infoized informarmation in many diftion in many differeferent ways. E.g.nt ways. E.g. catalog data stored in database can
catalog data stored in database can be presented electronicallybe presented electronically via web and also it can be
via web and also it can be printed in customized catalogprinted in customized catalogss targeted at specific market niches.
targeted at specific market niches. 4.
4. ReduReduction in suction in support stpport staff. E.gaff. E.g. compil. compiling and publing and publishiishingng Frequently Ask Questions (FAQ) can help user to get Frequently Ask Questions (FAQ) can help user to get thethe answer to these questions at their finger tips 24 hrs a day, 7 answer to these questions at their finger tips 24 hrs a day, 7 days a week.
5.
5. OutsOutsourciourcing of prong of products aducts and servnd services gices globallobally.ly.
•
• Improving the quality of goodsImproving the quality of goods
Direct contact with customers can help tracking Direct contact with customers can help tracking customer satisfaction, requesting more
customer satisfaction, requesting more customer customer feedback and p
feedback and p resenting custom solutions.resenting custom solutions.
•
• Increase in the speed of Increase in the speed of servicesservices
Because all the information is available right at Because all the information is available right at fingertips, and because only one medium is
fingertips, and because only one medium is involved,involved, everything right form
everything right form advertising, marketing, purchasingadvertising, marketing, purchasing to customer support can be done at the fastest rate.
to customer support can be done at the fastest rate.
•
• Increase in the market shareIncrease in the market share
It opens avenues for n
It opens avenues for n ew markets and new customers.ew markets and new customers. E.g. by expanding the
E.g. by expanding the business globally.business globally. Electronic commerce on different Perspectives (viewpoint) Electronic commerce on different Perspectives (viewpoint) Fro
From m a a CoCommmmuniunicatcation ion PerPerspespectictive ve :: E -E -C oC om m em m er cr ce e i s i s t h e t h e a b ia b il il it y t y t ot o deliver products , services, information or payments via networks such as deliver products , services, information or payments via networks such as the Internet and World Wide Web
the Internet and World Wide Web From an Interface Perspective:
From an Interface Perspective: E-CommeE-Commerce rce involves various involves various informatioinformationn and
and trantransactsaction ion exchaexchanges nges BusiBusiness ness to to BusiBusinessness, , busibusiness ness to to consuconsumermer,, consumer to consumer
consumer to consumer Fro
From m a a BuBusinsiness ess proprocescess s PerPerspespectictive ve :: E-commerE-commerce ce includes activitiesincludes activities t h a
t h at t d i rd i re ce ct l y t l y s u ps u pp o rp o rt t c oc om m em m er c e r c e e le le c te c tr o nr o ni c ai c al ll ly y b y b y m em ea n s a n s o f o f n e tn e tw o rw o rk e dk e d connections
connections
From an Online Perspective :
From an Online Perspective : E-commerce is an electronic environmentE-commerce is an electronic environment that makes it possible to buy
that makes it possible to buy and sell products, services and information onand sell products, services and information on the Internet. The products may be physical such as cars or services such as the Internet. The products may be physical such as cars or services such as news or consulting.
news or consulting.
From a Structural Perspective :
From a Structural Perspective : E-commerE-commerce involves ce involves various media datavarious media data t e x
t e xt , t , w ew eb b p a gp a ge se s, , I n tI n te re rn e t n e t t et el e pl e ph o nh o ny y o r o r I P I P t e lt e le p he p ho n y o n y o r o r v o iv o ic e c e o v eo v er r t h et h e Internet.
Internet.
VOI Products (Voice over the Internet) VOI Products (Voice over the Internet) Telephony applications:
Telephony applications:
IP connections availableIP connections available
Cool talk Cool talk
N NeetMtM eeeettiinngg
From a Market Perspective :
From a Market Perspective : E-commerce is a world wide network for E-commerce is a world wide network for doing business.
doing business.
INTERNET AND OTHER NOVELTIES INTERNET AND OTHER NOVELTIES
C u s
C u st o mt o me r e r c a n c a n g a ig a in n a c ca c ce se ss s t o t o a n a n I n tI n te re rn e t n e t m em er c hr c ha n ta n t’ s ’ s s y ss y st et em m a c ra c ro s s o s s t h et h e Internet without having to know anything about
Internet without having to know anything about the intervening Networksthe intervening Networks
Standard representation of the Internet is the Cloud to stress the fact that Standard representation of the Internet is the Cloud to stress the fact that t h e
t h er e r e i s i s s os om em et h it h in g n g g o ig o in g n g b eb et w et w ee n e n s y ss y st et em s m s c o mc o mm um un i cn i ca t ia t in g n g a c ra c ro s s o s s t h et h e Internet.The something encompasses any number
Internet.The something encompasses any number of intermediate computersof intermediate computers and networks. There are standard bodies for both network who defines the and networks. There are standard bodies for both network who defines the p
proro ttooccoolls s tto o bbe e uusseed d bby y aannyyoonne e ccoonnnneeccttiinng g tto o thth oosse e nneettwwoorrkk. . If If tthhe e rruullees s aarree p
proro ppeerrlly y iimmppllemem eenntteed d tthheen n tthhe e tteelleepphhoonne e oor r ccoompmp uutteer r wwiilll l bbe e aabblle e tto o ppaassss signals to and from the network.
signals to and from the network. E-COMMERCE DRIVERS E-COMMERCE DRIVERS Drivers promote E- Commerce. Drivers promote E- Commerce.
1.
1. DigDigital Convital Convergergence – All digitence – All digital deviceal devices can commus can communicatnicate with onee with one another.
another. Video,filVideo,film,documents,voim,documents,voice,data.ce,data. 2 .
2 . A nA ny ty ti mi me e a na ny wy wh eh er e r e a na ny oy on en e- - 2 42 4/ 7/ 7. I. It t t it ie s e s t ot og eg et ht he r e r tth e h e i ni nd ud us ts tr ir ia la l sector,mer
sector,merchants,the service chants,the service sector,sector, 3 .
3 . C h aC h an g en g es i n s i n o r go r ga n ia n iz a tz a ti o ni o n
ii.. ddoowwnnssiizziinng g oof f llaarrgge e oorrggaanniizzaattiioonn i i
i i.. o uo utts os ouurrc ic in g n g oof f ssp ep ecci ai alliiz ez ed d tta sa sk sk s i i
i ii .i . e ne nc oc ou ru ra ga gi ni ng c rg c ro so ss f us f un c tn c ti oi on an al b ul b us is in en es s ps s pr or oc ec es ss s all require
all require better communications.better communications. 4 .
4 . W iW id ed es p rs p re a d e a d a c ca c ce s s e s s t o It o ITT
The exponential increase in the number of PCs world wide means The exponential increase in the number of PCs world wide means greater for information and communication for business.
greater for information and communication for business. 5 .
5 . I nI nc rc re ae as e s e p rp re se ss us ur e r e o n o n o po pe re ra ta ti ni ng g c oc os ts ts s a na nd d p rp ro fo fi t i t m am ar gr gi ni ns s g lg lo bo ba la l company of products.
company of products. 6.
6. DemDemand for and for custcustomizeomized produd products ancts and serd servicesvices orga
organizatnization ion shoushould ld go go witwith h the the choichoice ce of of the the custcustomeomers. rs. CustCustomeromerss expect better quality and performance. If the firm does move with the expect better quality and performance. If the firm does move with the trend they will fail.
trend they will fail.
NETWORKS AND ELECTRONIC TRANSACTIONS TODAY NETWORKS AND ELECTRONIC TRANSACTIONS TODAY While considering online commerce, it is
While considering online commerce, it is importaimportant to nt to maintainmaintain 1 . 1 . P eP er sr sp ep ec tc ti vi vee Customer Customer Merchant Merchant The The Internet Internet
2.
2. DefiDefine a ne a contecontext (xt (circcircumstumstance)ance) Earlier Days
Earlier Days
•
• BroaBroadcastdcasting ing netwnetwork, ork, partparticulicularly arly teltelevisievision on was was useused d to to marmarketket
p
prroodduucctts s ((bbuut t oorrddeerrs s ccaannnnoot t bbe e ppllaacceed d uussiinng g tteelleevviissiioonn) ) oonne e wwaayy approach.
approach.
•
• Telephone lines were used for many Telephone lines were used for many by consumers and merchants for by consumers and merchants for
b
buussiinneesss s ttrraannssaaccttiioonnss((ppllaacciinng g oorrddeerrss,,eettcc))
•
• Payments have been made using credit cards Payments have been made using credit cards and cheques, etc.and cheques, etc. •
• Highly sensitive business transactions have been processed throughHighly sensitive business transactions have been processed through
ATM network. ATM network. Present Days
Present Days
Buying and selling of products in electronic market place will be
Buying and selling of products in electronic market place will be as simpleas simple and trusted as buying by phone or in p
and trusted as buying by phone or in p erson.erson.
A MODEL FOR COMMERCIAL TRANSACTIONS A MODEL FOR COMMERCIAL TRANSACTIONS
There will be differences between different types of transactions. Large There will be differences between different types of transactions. Large corporation buys raw material from its supplier is different from a child corporation buys raw material from its supplier is different from a child getting a candy from corner
getting a candy from corner store.store. S o m e i s s u e s i n v o l v e d i n E - S o m e i s s u e s i n v o l v e d i n E - C o m m e r c e :C o m m e r c e : Establishing Trust Establishing Trust Retail Store Retail Store •
• Before purchase can be made from a retail store, a customer mustBefore purchase can be made from a retail store, a customer must
enter it. enter it.
•
• Most shops are open to public and customer can walk in.Most shops are open to public and customer can walk in. •
• Merchant may control access to the goods Merchant may control access to the goods it offers in several waysit offers in several ways
It can sell to all comers through an open store frontIt can sell to all comers through an open store front
S e lS e ll i nl i ng g t o t o a a c e rc e rt at ai n i n c l ic l ie n te n te l e e l e ( w( wh o lh o le se sa l ea l er s r s s es el ll li n g i n g t o t o r er es e ls e ll e rl e rss only)
only)
Doing business only with Doing business only with referred customersreferred customers..
Degree of restrictions a merchant make on Degree of restrictions a merchant make on his product will dependhis product will depend upon his business.
upon his business.
o
o An automobile ask for license before a An automobile ask for license before a test drivetest drive o
o B oB oo k o k s ts to r e o r e d o nd o n’ t ’ t m im in d n d s ts tr a nr a ng e rg e rs s b r ob r ow s iw s in g n g t h rt h ro u go u gh h t h et h ei r i r
b
booookkss..
•
• Customer choice of doing a Customer choice of doing a transactiotransaction(buying a product)n(buying a product)
Whether the establishment carries the product being Whether the establishment carries the product being sought.sought.
P aP ay my me ne nt t m em et ht ho d o d d id is ps pl al ay ey ed d o n o n t ht he e s ts ti ci ck ek er s r s o f o f t ht he e d od oo ro r( o( on en e criteria)
criteria)
Both customer and merchant each establish a level of trust with each Both customer and merchant each establish a level of trust with each other.
other. M
Meerrcchhaanntt CCuussttoommeer r C
Cuussttoommeer r iis s a a ppootteennttiiaall p
puurrcchhaasserer ..
Merchant
Merchant is is a a reliable seller reliable seller C
Caap ap ab lb le e oof f s es elleec tc tiin g n g a na ndd p
paayyiinng g pprroodduucctts s iin n ttiimmee..
C
Ca pa pa ba bl e l e o f o f d ed el il iv ev er ir in g n g a na ndd sseerrvviinng g tthhe e pprroodduucct t iif f necessary.
necessary.
After confinement from both parties a higher level of
After confinement from both parties a higher level of trust is required.trust is required. Issues Concerned By Both Buyer And Seller
Issues Concerned By Both Buyer And Seller
Many products have distribution limits(to whom It can be given and whom Many products have distribution limits(to whom It can be given and whom not) not) e.g. e.g. P r eP r es c rs c ri p ti p ti o n i o n d r ud r ug s g s m am ay y n o t b e n o t b e d id is p es p en s en s ed d t o t o a n ya n yo n e o n e w iw it h ot h ou t u t aa legitimate
legitimate prescriptioprescription.n.
A lA lc oc oh oh ol il ic c b eb ev ev er ar ag eg es s m am ay y n on ot t b e b e s os ol d l d t o t o m im in on or s r s a na nd d m am ay y b eb e subject to other sales restrictions.(Nati
subject to other sales restrictions.(National holiday not to onal holiday not to be sold)be sold)
F iF ir er ea ra rm s m s a na nd d AAm mm mu nu ni ti ti oi on n a ra re e s us ub jb je ce ct t t o t o a a w iw id e d e r ar an gn ge e o f o f restrictions
restrictions
Tobacco-not to minors.Tobacco-not to minors. Esta
Establisblishing hing trustrust t betbetween ween partpartners ners in in a a commcommerciercial al transtransactiaction on takitakingng p
pllaacciinng g in in ppuubblliic c nneettwwoorrk k iis s vveerry y ddiiffffiiccuulltt.. Merchant Merchant M eM er cr ch ah an t n t c ac an n j uj ud gd ge e i n i n p ep er sr so n o n d ud ur ir in g n g t rt ra na ns as ac tc ti oi on (n (a n a n o lo ld md ma na n w h i t e h a i r e d c u s t o m e r n o t t o s h o w a n y I D t o b u y a s i x p a c k o f w h i t e h a i r e d c u s t o m e r n o t t o s h o w a n y I D t o b u y a s i x p a c k o f b beeeerr))
Online transaction offers no opportunity for Online transaction offers no opportunity for judgement.judgement.
Correlating identities on the Internet with actual individuals isCorrelating identities on the Internet with actual individuals is difficult.
difficult.
E-MerchantE-Merchants cannot afford to s cannot afford to trust everyone or even anyone.trust everyone or even anyone. Customer
Customer
How long a webpage of a company will exist?How long a webpage of a company will exist?
ConstructiConstructing a ng a counterfeit webpage representcounterfeit webpage representing itself as ing itself as a part of a part of large corporation
Trust is required between buyers and sellers. Trust is required between buyers and sellers. Negotiating A Deal (Try To Reach An
Negotiating A Deal (Try To Reach An Agreement By Discussion)Agreement By Discussion) Trivial matters in retail stores
Trivial matters in retail stores 1.
1. DetDetermiermining tning the ithe item tem to be po be purchurchasedased.. 2 .
2 . P rP ri ci ce t o be t o be c he c ha ra rg eg ed .d . Common method adopted: Common method adopted:
1 .
1 . S e lS e le c te c ts t hs t he d ee d es i rs i re d i te d i te me m.. 2.
2. PricPrice clee clearly arly markmarked ied in the n the produproduct.ct. 3 .
3 . D eD es i rs i re d e d p r op r od u cd u ct t n o t a v a in o t a v a il a bl a bl e l e ( c o( c ol o rl o r, , s is iz e , f l a vz e , f l a vo r v e r so r v e r si o n i s i o n i s n o t i nn o t i n stock)
stock) 4.
4. Retailer Retailer may have may have to order to order the product the product or offer or offer an alteran alternative deal.native deal. 5.
5. SpecSpecial pricial price is also apple is also applied for proied for productducts that are spes that are special but out of cial but out of stock.
stock.
R
Reettaaiil l ssttoorree EE--CCoomm V
Va la li di diitty y o f o f tth e h e mmeerrcch ah an tn t offering price
offering price
Req
Requireuired d specspecial ial mechmechanisanismm t o t o e n se n su ru re e t h at h at t b u yb u ye r e r p l ap l ac e dc e d an order. an order. I d e I d en t in t it y t y o f o f t h e t h e i ti te m e m d e sd e si r ei r edd b
by y thth e e ccuussttoommeerr..
S
Seelllleer r ooffffeerreed d tthhe e ssaammee p
prroodduucct t ffoor r thth e e spsp eecciiffiieedd p
prriiccee..
Ordering products over the Internet does not offer Ordering products over the Internet does not offer
a.
a. An expAn explicilicit mett method to rehod to refereference the ofnce the offerfering pring priceice b
b.. NNoor r aan n eexxpplliicciit t mmeetthhood d tto o rreeffeerreenncce e thth e e ooriri ggiinnaal l oorrddeerr.. Payment & Settlement
Payment & Settlement Heart of any transaction is
Heart of any transaction is the exchange of values(Money).the exchange of values(Money). Normal Procedure
Normal Procedure 1
1.. PPuurrcchhaasse e iitteem m iin n ppeerrssoonn.. 2 .
2 . B uB uy ey er s r s g ig iv e v e a a c ac as h s h o r o r c hc he qe qu eu es s o r o r c rc re de di t i t c ac ar dr d.. 3 .
3 . R eR ec ec ei vi ve s e s t ht he e p rp ro do du cu ct t i n i n r er et ut ur n r n a na nd d a a r er ec ec ei pi pt .t . Translating these actions into electronic form
Translating these actions into electronic form takes some procedures.takes some procedures.
There are mechanisms which allow payment information to be kept private There are mechanisms which allow payment information to be kept private b
by y eennccrryyppttiinng g iit t bby y kkeeeeppiinng g iit t enen ttiirreelly y oofffflliinne e oor r bby y uusisi nng g thth iirrd d ppaarrttiiees s ttoo settle
settle transactionstransactions.. In Internet
1 .
1 . U nU nl el es s ps s pr or od ud uc t ac t av av ai li la ba bl e dl e di gi gi ti ta la ll yl y, t h, t he b ue b uy ey er h ar h as t o ts t o tr ur us t ts t th e sh e se le ll el er r until goods are delivered.
until goods are delivered. 2 .
2 . CCu su stto mo meer r c ac an n a va vo io id d p rp ro bo blleemms s b y p a tb y p a trroon in iz iz in g t rn g t ru su st et ed d IIn tn teerrn en ett v e
v en dn do ro rs s ( a ( a p ep er sr so n o n g ig iv iv in g n g f if in an an cn ci ai al l o r o r o to th eh er r s us up pp po ro rt t t o t o a a p ep er sr so n o n o r o r organization)
organization) 3
3.. TTo o uusse e a a mmaajjoor r ccrreeddiit t ccaarrd d ccoommppaanny y tthhaat t wwiilll l bbaacck k uup p tthhee consumer in the event of a problem with the vendor.
consumer in the event of a problem with the vendor.
Vendor takes smaller risk. When selling online since credit cards are Vendor takes smaller risk. When selling online since credit cards are authenticated through automated connections.
authenticated through automated connections. Payment vehicles and currencies:
Payment vehicles and currencies: A great deal of
A great deal of attention is focused on the online attention is focused on the online transaction.transaction. The offline buyer has many options for
The offline buyer has many options for transactiotransaction exchanges.n exchanges. 1 .
1 . C oC om mm mo n o n a ra re ce ca sa shh 2
2.. PPrroovviiddiinng g aan n aauuddiit t ttrriiaal l aannd d a a ppaappeer r rreeccoorrd d oof f tthhee transaction( Personal check)(Claim of petrol
transaction( Personal check)(Claim of petrol allowance)allowance) 3 .
3 . C rC re de di t i t c ac ar dr dss E-Com
E-Com 1.
1. DigDigital ital currcurrencieencies ars are dee developveloped.ed. 2 .
2 . D iD ig ig it at al l s is ig ng na ta tu ru re e t et ec hc hn on ol ol og ig ie s e s p ep er mr mi t i t t ht he e a ua ut ht he ne nt it ic ac at it io n o n a na ndd certificatio
certification n of digital of digital transmitttransmitted documents.ed documents. Products of delivery:
Products of delivery: 1.
1. Any prodAny productsucts, food foot, food football or eveball or even a computen a computer can be deliver can be deliveredred p
phhyyssiiccaalllly y tto o thth e e ccuussttoommeerr.. 2.
2. Greater leGreater level of trvel of trust is ust is required required between mebetween merchant and rchant and customer.customer. 3.
Digital products: Digital products: D i D ig ig it at al l p rp ro do du cu ct s t s t ht ha t a t c ac an n b e b e d ed el il iv ev er er ed d e le le ce ct rt ro no ni ci ca la ll y l y a ra re e b eb ei ni ng g s os ol dl d electronically. electronically.
Online Accessibility and Sale of
Online Accessibility and Sale of Various Digital ProductsVarious Digital Products
Information products such as news articles information from databases and Information products such as news articles information from databases and other traditional text or data and all can be delivered immediately after other traditional text or data and all can be delivered immediately after p
puurrcchhaasse e oovveer r a a nneettwwoorrk k ccoonnnneeccttiioonn.. S/W Example of Digital Product S/W Example of Digital Product
Some vendors want to ensure that a third party cannot eaves drop on the Some vendors want to ensure that a third party cannot eaves drop on the p
proro dduucct t ttrraannssaaccttiioon n aannd d ggaaiin n uusse e oof f tthhe e mmaatteerriiaal l bbeiei nng g ssoolld d wwiitthhoouut t ppaayyiinngg for it
for it
THE INTERNET ENVIRONMENTS THE INTERNET ENVIRONMENTS On the personal side, Internet is
On the personal side, Internet is growing power they had never before.growing power they had never before. Email, Message goes quickly and cost is
Email, Message goes quickly and cost is almost zero.almost zero. On
On the the business business side, side, the the rise rise of of the the Internet Internet as as the the enabler enabler of of E- E-Commerce is changing how
Commerce is changing how companies manage their business.companies manage their business. The Internet is the
The Internet is the 1 .
1 . F aF as ts te se st gt gr or ow iw in gn g 2 .
2 . M oM os t us t us es er F rr F ri ei en dn dl yl y 3.
3. MosMost comt commermercialcially populy popular tlar technoechnologylogy.. Advantages of Internet Advantages of Internet News paper, 100, News paper, 100, 100 100 Digitised Photo, Digitised Photo, 300, 350 300, 350
Book (no Photo), Book (no Photo),
400, 600 400, 600 music CD, 375, music CD, 375, 700 700 Full Movie, 750, Full Movie, 750, 900 900 S/W, 1000, 800 S/W, 1000, 800 0 0 100 100 200 200 300 300 400 400 500 500 600 600 700 700 800 800 900 900 1000 1000 0 0 220000 440000 660000 880000 11000000 11220000 N
Ne w s pe w s paap ep err DDiiggiittiis es ed Pd Ph oh ot ot o BBo oo ok (k (n o n o PPh oh otto )o ) mmuus is ic Cc CDD FFuulll Ml Mo vo viiee SS/ W/ W
1. Marketing and selling products and services: 1. Marketing and selling products and services:
1.
1. AdveAdvertisrtisemeement reachint reaching custong customermers quickly and ches quickly and cheaply.aply. 2.
2. ReacReaching any one anhing any one anywheywhere witre without payhout paying exting extra for disra for distance or tance or duration.
duration. 3 .
3 . T hT he e I nI nt et er nr ne t e t i s i s h oh os t s t t ht ho uo us as an d s n d s o f o f e le le ce ct rt ro no ni c i c p up ub lb li ci ca ta ti oi on s n s t ht ha ta t p
proro vviidde e pprroommoottiioonnaal l ooppppoorrttuunniittiiees s ffoor r aanny y bbuussiinneessss.. 4.
4. WebWebsite attsite attractracts mills millions of reions of readers on a dailaders on a daily basisy basis.. 5 . 5 . C o mC o mp a np a ny y u s e I n t eu s e I n t er n er n et t t o s e n d e m a it o s e n d e m a il l m am as s m a i ls s m a i li n g t o i n g t o c u sc u st ot om em er r s u r s u rv ev ey s y s a r e a r e s e ns e nd d t o t o s es el el ec t ec t ed d c u sc u st ot om em er s , r s , n o tn o ti c ei c es s a b oa b ou t u t s p es p ec i ac i all cases. cases. 6.
6. ElecElectronitronic medic media are ala are also mucso much easih easier to uper to updatedate.. 2. Internet is open
2. Internet is open 1.
1. All the IntAll the Interneernet protoct protocols are opeols are open and publin and public and any one can usc and any one can usee t h e
t h em m t o t o w rw ri t e i t e s /s /w w i mi mp l ep l em em en t an t at i ot i on s n s t h at h at t c a n c a n i n ti n te re ro p eo p er a tr a te e w iw it ht h other computers and n
other computers and n etwork.etwork. 2 .
2 . A A w iw id e d e r ar an gn ge e o f o f i mi mp lp le me me ne nt at at it io n o n a va va ia il al ab lb le e f rf ro m o m f rf re e e e w aw ar e r e a na ndd share ware versions of the Internet.
share ware versions of the Internet. 3. Doing business fast
3. Doing business fast 1.
1. E-SeE-Sellilling is conducng is conducted in minuted in minutes rates rather thather than hours/n hours/daysdays.. 2.
2. WaitWaiting on ing on phone phone to plato place orce order is der is redreduced.uced. 3 .
3 . T hT hi s i s s ps pe ee ed d c oc om pm pr er es ss se s e s b ub us is in en es s s s p rp ro co ce se ss es es s a na nd d p rp ro mo mo to te s e s t ht hee growth of a customer base.
growth of a customer base.
4. Gathering opinions and trying out new ideas: 4. Gathering opinions and trying out new ideas:
1.
1. InteInternet is the idrnet is the ideal placeal place for trye for trying out new iding out new ideas at low coseas at low cost.t. 2.
2. OpiniOpinions cons can be gan be gatheathered frred from anom anywheywhere.re. 5. Promoting a paper free
5. Promoting a paper free environment:environment: 1 .
1 . C oC om pm pa na ny y m em em om os , s , h ah an dn db ob oo ko k, , c ac at at al ol og sg s, , p rp ro mo mo to ti oi on a l n a l m am at et er ir ia la l,, employee handbook, report can be placed on
employee handbook, report can be placed on the company intranetthe company intranet and retrieved or circulated electronically anytime by authorized and retrieved or circulated electronically anytime by authorized p
peerrssoonnnnelel .. 6. Providing a s
6. Providing a s uperior customer service and support resourceuperior customer service and support resource 1
1.. MMo so st t wweeb sb si ti tees s ggeen en erra ta te e c uc us ts toom em er r f ef eeed d b ab acck k iin n tth e h e wwa y a y o f o f comments, suggestions and complaints.
comments, suggestions and complaints. 2.
2. A commA common support on support resource resource is FAis FAQ (FreQ (Frequently Asquently Asked Qked Question).uestion). 3 .
3 . A A F AF AQ Q e l ie l im i nm i na t ea t es s h a vh a vi n g s t ai n g s t af f a n s wf f a n s we r t h e e r t h e s a ms a me e q u eq u es ts ti o n s o v ei o n s o v er r and over again.
and over again. 4.
5.
5. UsinUsing emailg email, custom, customer supporer support also freet also frees company pers company personnesonnel froml from b
beeiinng g ttiieed d to to a a tteelleepphhoonnee..
7. Efficiency and unequaled cost effectiveness 7. Efficiency and unequaled cost effectiveness
1.
1. MajoMajor corporr corporatioation are spendin are spending hundreng hundreds of millds of million of dollion of dollars onars on sales promotion.
sales promotion. 2.
2. Cost of estaCost of establisblishing and mainthing and maintainiaining even sophisng even sophisticaticated websted websiteite for that purpose is affordable.
for that purpose is affordable.
8. Supporting Managerial functions, spreading ideas, Ease of Technical 8. Supporting Managerial functions, spreading ideas, Ease of Technical support
support
The traditional managerial function of The traditional managerial function of
1 1.. PPllaan nn niinngg 2 . 2 . O rO rg ag an in iz iz in gn g 3 . 3 . DDiir er ec tc tiin gn g 4 . 4 . C oC on tn tr or olll il in gn g
All the above requires managers to All the above requires managers to
CollectCollect
EvaluateEvaluate
Distribute management informationDistribute management information In organization with branches worldwide, In organization with branches worldwide,
1.
1. InteInternet sendrnet sends busines business inforss informatimation througon through a h a compcompany’s netany’s network work and across network around the
and across network around the globe.globe. 2.
2. EmaiEmail is convenil is convenient tool for maent tool for managenagers to reach emplrs to reach employeeoyees, bossess, bosses,, customers and supplies quickly and at no
customers and supplies quickly and at no charge.charge. 3 .
3 . T hT he e I nI nt et er nr ne t e t h ah as s s ps pa wa wn en ed d d id is cs cu su ss is io n o n g rg ro uo up s p s c hc ha t a t r or oo mo ms , s , a na ndd online interactive session in which technical and managerial staff online interactive session in which technical and managerial staff e v a e v al ul ua t ea t es s p r op r od u cd u ct s t s a n d a n d p r op r oc e sc e ss es es s a n d a n d a r ra r ri v ei v es s a t a t v a lv a lu e u e a d da d de de d decisions. decisions. 4 . 4 . B e tB e tt et er r t et ec h nc h ni c ai c al l s u ps u pp o rp o rt t i s o n e o f i s o n e o f t h e k e y b e n et h e k e y b e n ef i tf i ts s o f l i n ko f l i n ki n g t oi n g t o the Internet. the Internet. Example Example I B I BM M o fo ff ef er s r s c uc us ts to mo me re rs s a na nd d t et ec hc hn in ic ac al l s us up pp po ro rt t f if ix ex es s b ub ug s g s a na nd d h ah an dn dl el ess software upgrades on the Internet.
software upgrades on the Internet.
1000 of free software programs available for anyone to
1000 of free software programs available for anyone to download.download.
Internet continues to deliver thousand of database of research dataInternet continues to deliver thousand of database of research data from medicine, vehicles, and food preparation to hundreds of R&D from medicine, vehicles, and food preparation to hundreds of R&D discussion group.
discussion group.
F o r F o r t h ot h ou s au s an d s n d s o f o f r er es e as e ar cr ch h j o uj o ur n ar n al s , l s , a u ta u to m ao m at et ed d s es ea r ca r ch e s h e s t h rt h ro u go u ghh current and back issues are
current and back issues are available in minutes.available in minutes.
C oC om p am p an y n y r er es e as e ar cr ch , h , t h et h ey y u su se s e s I n tI n te re rn e t n e t t o t o s e es e ek k i n fi n fo ro rm am at i ot i on n a b oa b ou tu t customer tastes and preferences to profile a customer base for a new customer tastes and preferences to profile a customer base for a new p
9. Triggering New Businesses 9. Triggering New Businesses
Given the world wide networking of business and commerce, mere Given the world wide networking of business and commerce, mere p
prreesseenncce e iis s bboouunnd d tto o ttrriiggggeer r oonne e ttyyppe e oof f bbuussiinneesss s aaccttiivviitty y oor r aannoothth eerr.. E
Egg..
T iT in y n y c o mc o mm em er c ir c ia l a l f i lf i lt et er r m a km a ke s e s i n i n L y nL y nc h bc h bu r g u r g V iV ir gr gi n ii n ia a l al an d en d ed d $ 6$ 6 million contract with government of Saudi arabia from the Internet. million contract with government of Saudi arabia from the Internet.
A A s ts ta r ta r tu p u p c o mc o mp a np a ny y o w no w ne d e d b y b y s ts tu d eu d en t s n t s g e ng e ne re ra t ea t ed d $ 1 1 $ 1 1 m i lm i ll i ol i on n i ni n revenues in 1999 from selling used books
revenues in 1999 from selling used books nationwide.nationwide. Internet is truly moving from novelty to necessity.
Internet is truly moving from novelty to necessity. Limitations Limitations 1 . 1 . S eS ec uc ur ir it y & pt y & pr ir iv av ac yc y 2 . 2 . F aF ak ek es & fs & fo ro rg eg er ir ie se s 3.
3. OtheOther threatr threats (Hackes (Hackers, wormrs, worms, viruss, viruses, Troes, Trojan horsejan horse)) WORLD WIDE WEB
WORLD WIDE WEB
World wide web is the fastest World wide web is the fastest
1 .
1 . g rg ro w io w in g n g m am ar k er k et pt pl al ac e .c e . 2 .
2 . R eR es es ea ra rc h f ac h f ac ic il il it yt y 3.
3. ComCommunicmunicatioation ton tools ols in tin the whe worldorld.. Internet:
Internet:
It is an infrastructure that links hundreds and thousands of network It is an infrastructure that links hundreds and thousands of network to one another.
to one another. World Wide Web: World Wide Web:
It is the whole constellation of resources that can be accessed using It is the whole constellation of resources that can be accessed using tools such as FTP,HTTP and TELNET.
tools such as FTP,HTTP and TELNET.
An organization of files designed around a group of servers on the An organization of files designed around a group of servers on the Internet, programmed to handle requests from browser software that
Internet, programmed to handle requests from browser software that residesresides on user pc’s.
on user pc’s. 1.
1. WorWorld wide weld wide web is not limib is not limited to texted to text & graphit & graphics, liscs, listenitening of Auding of Audio&o& video files is also possible.
video files is also possible. 2.
2. UseUsers must firrs must first downlst download the file anoad the file and then use a s/w applid then use a s/w applicatication to playon to play the file.
the file.
TCP/IP- A set of protocols that provide the
TCP/IP- A set of protocols that provide the basis for operating the Internet.basis for operating the Internet. TCP/IP does not include any ability to control the speed or consultancy at TCP/IP does not include any ability to control the speed or consultancy at which information is transferred. Some packets may more quickly while which information is transferred. Some packets may more quickly while other are slowed down because of
Stream
Streaming ing TechTechnolognologyy h ah as s p rp ro vo vi di de d e d a n a n a da de qe qu au at e t e b ub ut t f af ar r f rf ro m o m i di de ae all solution to the audio and
solution to the audio and video streaming application begin playing the filevideo streaming application begin playing the file a s
a s i t i t i s i s b eb ei ni ng g d od ow nw nl ol oa da de d e d r ar at ht he r e r t ht ha n a n w aw ai ti ti ni ng g u nu nt it il l t ht he e e ne nt it ir e r e f if il e l e i si s received. This means that the user does not have to wait for the file to the received. This means that the user does not have to wait for the file to the completely downloaded.
completely downloaded.
WORLD WIDE WEB STANDARDS WORLD WIDE WEB STANDARDS
1.
1. The www is deThe www is definefined by handful of prd by handful of protocootocol specil specificatfications.ions. 2 .
2 . S o fS o ft wt wa r e a r e d e vd e ve l oe l op e rp e rs s u s e u s e t ht he s e e s e s p es p ec ic if i cf i ca ta ti o ni o ns s t o t o i mi mp l ep l em em en t s n t s t h et h e web browser & web server programs.
web browser & web server programs. 3
3. . bbrroowwsseer r HTTPHTTP Server. Server. Interaction Interaction between between server server andand b
brroowwsser er aarre e mmaadde e tthhrroouuggh h HTHT TTPP. . wwww w w iis s a a cclliieennt t sseerrvveer r sysy sstteemm.. Content is held by web servers and requested by clients of web Content is held by web servers and requested by clients of web b
brroowwsserer ss.. 4 .
4 . UURRLL( U( Un in iffo ro rm m RReesso uo urrc e c e LLo co ca ta to ro r) ) p rp ro to to co co l o l ssp ep ec ic iffi ei es s h oh oww individual resources( files, documents or even a specific location individual resources( files, documents or even a specific location of a document) are to be identified with www.
of a document) are to be identified with www. 5.
5. Web browWeb browsers users use these se these URL iURL in HTTP n HTTP requests requests to remto remote serveote servers.rs. 6 .
6 . W eW eb b d od oc uc um em en tn ts s s ts to ro re d e d o n o n t ht he e s es er vr ve r e r t ht ha t a t h ah av e v e b eb ee n e n s ps pe ce ci ai al ll lyy tagged using HTML tags.
tagged using HTML tags. 7.
7. Tags allTags allows difows differeferent parts of a docunt parts of a document to bement to behave difhave differeferentlyntly.. Most important are the abilities of text & graphics to behave as Most important are the abilities of text & graphics to behave as p
pooiinntterer s s tto o oothth eer r ppaarrtts s oof f a a ddooccuummeenntt.. Web Page:
Web Page:
A document on the web is called a webpage. A document on the web is called a webpage. Home Page:
Home Page:
The first page in a series of related documents or a site is called a The first page in a series of related documents or a site is called a homepage.
homepage. Browser: Browser:
A browser is a software program loaded on a pc that allows the user A browser is a software program loaded on a pc that allows the user to read or
to read or access information stored on the Internet.access information stored on the Internet. It is a
It is a vehicle that enables the user vehicle that enables the user to interface with the Internet.to interface with the Internet. T h e b r o w s e r t a k e s t h e u s e r i n s t r u c t i o n s a n d c o n v e r t s t h e m i n t o a T h e b r o w s e r t a k e s t h e u s e r i n s t r u c t i o n s a n d c o n v e r t s t h e m i n t o a language and a format that can be sent to
language and a format that can be sent to remote site and executed.remote site and executed. Web server:
Web server:
A web server is the destination point on the Internet to offer web A web server is the destination point on the Internet to offer web s e
s er vr vi ci ce se s, , a a c oc om pm pu tu te r e r m um us t s t b e b e c oc on n en n ec tc te d e d t o t o t ht he e I nI nt et er nr ne te t, , b e b e r ur un n in n in g n g aa webserver program and have
