MGT 8520

Managing Telecommunications and Electronic Commerce

MBA 8520

TelecommunicationsSoftware

1

2 3

4

52

End UserTerminals Computers

TelecommunicationsChannels and Media

TelecommunicationsProcessors

Telecom System Components

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SignalsChannelsComputers/ProcessorsData Com Software

Communication System Components

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Telecommunications Media

Multiplexer

MultiplexerGateway

Modem

EarthStation Earth

Station

Coaxialcable

Fiberopticcable

HostComputer

MicrowaveLink

MicrowaveLink

SatelliteRegional

Office

WirelessLAN

SatelliteCentralOffice

End User Workstation

Satellite

MBA 8520

Trends in Telecommunications

More collaborative computing, online businessoperations via telecommunications networks

More vendors, carriers, alliances, and telecommunications network services

More interconnected local and global digital networks and improved transmission channels

Industry Trends

Technology Trends

Application Trends

MBA 8520

Future of Telecom• Organizations use a hybrid collection of networks• Scope of networks is broader

– Internet2 coming!• Wireless and cable technology will continue to

expand– bottleneck at consumer’s house will be broken

• Phone, PC, and TV convergence– note: BroadCom chips

MBA 8520

Evolving PC, TV, and Phone Relationships

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Internet2 (I2)• Collaborative effort of 120+ schools to develop

next generation Internet technology and applications.

• Goal is to enhance not replace current Internet infrastructure

• Coalition of government, education, and commercial sectors

• Some project members are already communicating using I2 technology

MBA 8520

1. Content Movies TV shows Shopping Entertainment Data & Information Educational Programming

Increase in Bandwidth Helps:

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2. Data Compression & Storage• Content must be digitized

1 movie = 100 GB• and compressed for storage

= 4 GB (approx. 9.3 MB/sec)

Bandwidth Implications

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Internet GrowthHow big is the Internet?

• Internet 1980 - 200 computers

• Internet 1998– 100 million people in

194 countries– 15 million US

households– 33,000 new users each

day; 75%/month growth

– predicted to be 1Billion by 2005

MBA 8520

Internet Growth

Internet traffic — the number of bytes transmitted from one Internet host computer to another.

Terabyte — 1,000,000,000,000 bytes

Exabyte — a quintillion (10 18) bytes

NOTE: Internet traffic exceeded 100 terabytes a week by 1997.

MBA 8520

Internet TechnologyHow does data travel over the Internet?

The Internet backbone in the US provides many pathways for data .

DS3=

T3=

OC3=

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Internet TechnologyHow does data travel over the Internet?

Your computer establishes a dialup connection to an ISP

The ISP connects to the Internet backbone

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URLsWhat’s the difference between a domain name and a URL?

Components of a URL:

http://www.fooyong.com/information/specials.html

Protocol Web server name Folder name Document name and filename extension

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Internet MailHow does Internet e-mail reach it’s destination?

Components of an Internet mail address:

wgibson@ bcnet.com

User ID Domain name of mail server

“at” symbol

MBA 8520

Streaming media — sends a small segment of media file to your computer and begins to play it. Your computer plays a media file while continuing to receive it.

In-place multimedia technology — plays a media element as a seamless part of a Web page.

Multimedia overlay technology — adds a separate window to the current Web page where multimedia elements appear.

MBA 8520

Internet Multimedia

In-place multimedia technology

An animated GIF runs in place as part of a Web page.

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Some multimedia plays in a window that overlays the Web page.

Multimedia overlay technology

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• Media player — a software program that provides you with controls to start, stop, and rewind media segments

• Plug-in or viewer — a software module that adds a specific feature to a system or browser; examples:

Acrobat Reader Shockwave Real Audio -see text description of start-up VoxChat Cool Talk

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Push and Pull

Pull technology — used to request information from Web pages and ‘pull’ them into view.

Push technology — used to send information that was not directly requested from a Web site to users. Examples include personalized newspapers and Webcasts.

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Push and Pull

Pushed information usually appears in a scrolling box.

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Interorganizational System (IOS)• Transcend boundaries of the firm

– Automated teller machines– Online reordering systems– Customer reservation systems

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IOS Interaction• One to one

– buyer seller system• reorder system

• One to many– marketing or purchasing system

• AMTRAK CRS• GM parts acquisition

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Interaction

• Many to Many– electronic marketplace– AHS and Sabre evolved into this type of

interaction• The Web is a special case of M-M IOS

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Levels of IOS Control• Data control

– enter and receive data– one way or interactive

• Process control– integration of inventory management with reorder system

• Network control– manage the network for others to use

• MAC• Compuserve network for SABRE

MBA 8520

Firm Infrastructure

Human Resource Management

Technology Development

Procurement of Resources

InboundLogistics Operations Outbound

LogisticsMarketing

andSales

Service

Competitive

Adva

ntag

e

How Do We Transform the Value Chain with E-Commerce?

MBA 8520

Interaction between opportunities and threats

Threat of new entrants

Bargaining Power of Buyers

Bargaining Power of Suppliers

Threat of Substitute Products or Services

Rivalry Among Existing Competitors

How Do We Apply the 5-Force Model in E-Commerce?

MBA 8520

Innovative Uses of the Web

• Pioneer new business and personal services• Blend unique new technologies, such as

Java applets or VRML 3-D• Provide new experiences• Make the world smaller• Bring people together to form e-

communities

MBA 8520

Examples: Retail• On-line shopping: Cybermalls

– Internet Shopping Network (www.isn.com)• largest internet mall for computers• more than 35,000 products

– Brandpoint (www.brandpoint.com)• over 500 retailers, catalogs manufacturers and services

– Onsale Inc. (www.onsale.com)• online silent auction, of computers, as a game-like experience• attracts about 750,000 visitors each week

MBA 8520

Examples: Retail (cont.)

• On-line shopping: Others– WebLocator

(www.comsortium.com/weblocator.html)• interactive chain store location service

– Virtual Vineyards (www.virtualvin.com)• online buying service for fine wines and gourmet food

– Amazon.Com Inc. (www.amazon.com)• online database of over 1.1 million book titles

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Examples: Shipping

• Federal Express (www.fedex.com)– allows users to:

• arrange package pickup• track delivery status• order merchandise online• request free shipping and tracking software

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Examples: Banking

• Wells Fargo Bank (wellsfargo.com)– view account balances and history– transfer funds between accounts– set up auto bill payment– review upcoming scheduled payments to make

changes or cancel– send money anywhere in the US

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Examples: Banking (cont.)

• Security First Network Bank (www.sfnb.com)– individual checking account transactions– purchase CDs– open moneymarket accounts– open joint checking accounts

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Examples: Insurance

• InsureMarket (www.insuremarket.com)– information and quotes– interactive support to select insurance

• e.g., customer shopping for auto insurance– probability of theft– injury rates– cost, etc.

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Examples: Investment Services• Stock, bond, and mutual fund trading

– E*Trade Securities Inc. (www.etrade.com)– Charles Schwab Corp. (www.eschwab.com)– Lombard Brokerage (www.lombard.com)

• Investor’s SuperSite (www.wallstreetcity.com)– stock and mutual fund information, w/ interactive,

customizable stock ticker (written in Java)• Quote.com (www.quote.com)

– real-time financial market data, business news, etc.

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Examples: Entertainment and Education

• Distance Learning– University of Phoenix Online Campus

(www.uophx.edu/online/)– Louisiana College

(www.lacollege.edu/lconline.html)– Microsoft Online Institute (MOLI)– IBM’s Global Campus program

MBA 8520

Examples: Travel• Internet Travel Network (www.itn.net)

– unique feature: • users build and email a travel profile • email response when requirements are met

– generates 7 hits per second• MapQuest (www.mapquest.com)

– search engine to locate any map of the world• Preview Vacations (www.vacations.com)

– live video of travel destinations, including virtual reality tours

MBA 8520

Lessons from Cases• Build internal capabilities

– AHS, AA, GEIS• Penetrate quickly and leverage community

– RealNetworks, Yahoo, Intuit– Note “Life event” internet portal strategies

• Exploit value of information– reusable– time-valued– customizable– create new or enhance old products

MBA 8520

Lessons from Internet Securities

• Evolving Information Arbitrage Strategy– Information Broker– Content Specialist– E-Market Facilitator