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1
Chapter 7
E-Commerce
The Internet, Intranets, and Extranets
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What is the Internet?
The Internet connects millions of servers.
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• 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
What is the Internet?
World growth of the Internet
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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.
The number of Internet domain servers continues to grow
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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
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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
– Frames: Sections of a Web page that let a browser explore a site in different ways on the same page
– Cookies: Special file a Web site saves on the surfer’s hard disk so the site can remember something about the surfer later
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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
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Intranets and Extranets
intranet, an extranet, and the Internet from an individual user’s perspective
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Establishing a Web Site
• Site Name
• Points of Presence
• Line Capacity
• Site Maintenance
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Business on the Internet
• Business-to-Business Trading
• Electronic Data Interchange
• Exchanges and Auctions– E-catalogs
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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
Web-shopping benefits
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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.
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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
• Risks to Consumers– Eavesdropping and interception – Misrepresentation