Internet and E-Commerce

History of the Internet

Components of the Internet

Transmission Control Protocol (TCP) Transport-layer protocol that most Internet applications

use with IP Backbone

One of the Internet’s high-speed, long-distance communications links

Uniform Resource Locator (URL) An assigned address on the Internet for each computer

Domain Name System

IP addresses are difficult to remember and use With DNS, users can employ alphanumeric

names that are easy to remember, such as www.cpe.eng.cmu.ac.th

Domain Name System (Contd.)

.com (for commercial businesses) .org (for nonprofit organizations) .edu (for educational institutions) .gov (for the U.S. government) .mil (for the U.S. military) .net (for networks) .int (for international entities)

Domain Name System (Contd.)

Internet Corporation for Assigned Names and Numbers (ICANN) Responsible for managing IP addresses and

Internet domain names Has authority to resolve domain name disputes

Cyber-squatters Register domain names in the hope of selling

them to corporations or people

Uniform Resource Locators

A string of characters associated with a specific information resource, such as www.google.com, www.cmu.ac.th, and so on

Many URLs relate to Web access via HTTP, but note that URLs also apply to many other Internet protocols and information resources

Instead of “http,” the first part of a URL could include “ftp” for File Transfer Protocol, “news” for Usenet news, or other Internet resource types

Uniform Resource Locators (Contd.)

How the Internet Works?

Internet Open Issues

The Internet has been accompanied by a host of economic and social policy questions: Should online sales be taxed? Should voice services that use Internet telephony

(VoIP) be regulated and taxed, like other more traditional services?

How might a major Internet outage or cyberterrorist attack affect nations economically?

Internet Open Issues (Contd.)

Some countries restrict or prohibit Internet access for political or religious reasons Whose laws should apply, and how should they apply to a

network that transcends national boundaries? In what ways will the Internet intersect with politics? What are the ramifications of the international digital

divide, in which some countries have widespread Internet access and computing resources, and others have limited resources?

Case Study: The 2014 Leak Scandal

Source of pictures iCloud

Security flaw Find My iPhone

How? The application allows users to input password as many

times as they want The hacker(s) used “brute force” password hacking

Results Private pictures from at least 21 celebrity, hundreds of

pictures, more than 500MB in size total (and still growing), are now spread on the Internet

Internet Application

The World Wide Web

Collection of tens of millions of server computers that work together as one in an Internet

Hyperlink Highlighted text or graphics in a Web document that,

when clicked, opens a new Web page Web browser

Web client software such as Internet Explorer, Firefox, Safari, Opera, and Google Chrome used to view Web pages

The World Wide Web (Contd.)

Hypertext Markup Language (HTML) Standard page description language for Web pages

HTML tags Let the browser know how to format text

Extensible Markup Language (XML) Markup language for Web documents containing

structured information Cascading Style Sheet (CSS)

File or portion of an HTML file that defines the visual appearance of content in a Web page

Web Programming Languages

Java HTML5 Other platforms

Asynchronous JavaScript and XML (AJAX) Hypertext Preprocessor (PHP) Adobe Flash, Microsoft Silverlight, IBM Worklight

Sample HTML5 Websites

The Wilderness Downtown http://www.thewildernessdowntown.com/

Heart of the Attic http://heartofthearctic.ca/

Three Dreams of Black http://www.ro.me/

Enjoy Your Privacy http://www.enjoyyourprivacy.com/

Google Play Music Tour http://play.google.com/about/music/tour/

Source: http://www.ebizmba.com/articles/best-html5-websites

Content Management Systems

An emerging technology to help customizing web sites Joomla Wordpress Drupal

Content Management Systems (Contd.)

Internet and Web Applications

Search engines and Web research Search engines

Have become important to businesses as a tool to drive visitors to the business’ Web site

Search Engine Optimization (SEO) has become a valuable marketing tool

Real-time search will be a future for search engines

Sample Services from Google

Services What It Does

Code Tools and resources for developers

Docs Cloud office

Images Search for images on the web

Maps View maps and get directions

News News stories

Translate Language translation

Scholar Search through academic articles

Shopping Find the best deal on consumer products

E-Mail

Text messages Sound, images & videos Files

Instant Messaging

Online, real-time communication between two or more people who are connected to the Internet

Can share files and other activities

Instant Expressions and Abbreviations

Expressions ;-) ;-( :-# :-D :-0 :-@ :-& orz

Abbreviations AFK BRB BTW IMHO LOL OIC TY OMGWTFBYOBBQ InW

Leet Language

Also known as “leetspeak” It uses various combinations of ASCII

characters to replace letters.

1f u c4n r34d th1s u r3411y n33d t0 g37 141d

Internet Phone and Videoconferencing Services

Internet phone service Relatively inexpensive, especially for international calls

Voice-over-IP (VoIP) technology Network managers can route phone calls and fax

transmissions over the same network they use for data Internet videoconferencing

Supports both voice and visual communications

Skype

Google Hangout

Social Networks

Facebook, Google+ Social networking platform Social application Authentication system Media sharing PR, CRM & Advertising

Twitter News sharing PR, CRM & Advertising

Facebook

Google+

Twitter

Age Distribution on Social NetworkSo

urce

: Goo

gle

Ad P

lann

er (2

010)

Media Sharing

YouTube Video sharing Marketing

Instagram, Flickr, Shutterfly Photo sharing

Getty Images, Shutterstock Photo stocking

YouTube

Flickr

Shutterstock

File Sharing

Allow people to share files in P2P mod Bittorent

Bittorent

Social Bookmarking

Purpose To provide a view of the most popular Web sites,

videos, blog articles, or other Web content at any given moment

Popular social bookmarking sites delicious.com Digg

delicious.com

Digg

Web Auctions

Web auction A way to connect buyers and sellers

eBay Popular auction site Easy to use and includes thousands of products and

services in many categories Auction sites

Cannot always determine whether the people and companies listing products and services are legitimate

eBay

Music, Radio, Video, and TV on the Internet

Radio broadcasts are now available on the Internet

Video and TV are also becoming available Internet Protocol Television (IPTV) protocol

Used to put TV programming on the Internet

Office on the Web

Internet office Web site that contains files, phone numbers, e-

mail addresses, an appointment calendar, and more

Allows your desktop computer, phone books, appointment schedulers, and other important information to be with you wherever you are

Google Drive

Internet Storage

Allow users to store, retrieve and manipulate files in the “cloud”.

Popular internet storages Dropbox SugarSynchttp://dl.dropbox.com/u/1621542/03%20-

%20Internet%20and%20E-Commerce.ppt

Dropbox

Wikis

A wiki is a website that allows the easy creation and editing of any number of interlinked Web pages

WYSIWYG

Wikipedia

Global Internet Traffic

Online Language Populations

Using Internet for Business Process Improvement

Marketing Manufacturing Investment and finance

Internet for BPI: Marketing

Market segmentation Identification of specific markets to target them

with advertising messages Technology-enabled relationship

management Use of detailed information about a customer’s

behavior, preferences, needs, and buying patterns to customize the entire relationship with that customer

Internet for BPI : Manufacturing

Electronic exchange Electronic forum where manufacturers, suppliers,

and competitors buy and sell goods, trade market information, and run back-office operations

Business center is not a physical building but a network-based location where business interactions occur

Internet for BPI : Investment and Finance

The Internet Has revolutionized the world of investment and

finance Electronic bill presentment

Eliminates all paper, down to the bill itself

e-Commerce

Electronic Commerce

Conducting business activities electronically over computer networks

Business activities that are strong candidates for conversion to e-commerce Paper based Time-consuming Inconvenient for customers

Traditional VS Online Commerce

Source: http://www.cirrusabs.com

Benefits of e-Commerce

Increase sales and profits Decrease costs Expand the size of the market Increase productivity Improve customer services Market equity Accessibility to market

Modes of e-Commerce

B2B B2C C2C

Business-to-Business (B2B) e-Commerce

Subset of e-commerce All the participants are organizations Useful tool for connecting business partners in

a virtual supply chain to cut resupply times and reduce costs

Business-to-Consumer (B2C) e-Commerce

Form of e-commerce in which customers deal directly with an organization and avoid intermediaries

Disintermediation The elimination of intermediate organizations

between the producer and the consumer

Consumer-to-Consumer (C2C) e-Commerce

Subset of e-commerce that involves consumers selling directly to other consumers

Popular sites Bidzcom, Craigslist, eBid ePier, Ibidfree, Ubid, and Tradus

Highly popular among college students

e-Government

Use of information and communications technology to Simplify the sharing of information Speed formerly paper-based processes Improve the relationship between citizen and

government

e-Government (Contd.)

Forms of e-Government Government-to-consumer (G2C) Government-to-business (G2B) Government-to-government (G2G) Government-to-employee (G2E)

Example of e-Government applications e-Auction

UN e-Government Survey 2014

e-Government Development Index 2014 (2012)1. South Korea (1)2. Australia (12)3. Singapore (10)4. France (6)5. Netherlands (2)6. Japan (18)7. USA (5)21. Germany (17)

Based on: Scope and quality of online services Telecommunication connectivity Human capacity

70. China (78) 95. Philippines (88)99. Viet Nam (83)102. Thailand (92)106. Indonesia (97)118. India (124)152. Laos (153)139. Cambodia (155)

Customer Relationship Management

Involves managing every aspect of an organization’s interactions with its customers or clients including Marketing and advertising Sales Customer service after the sale Programs to retain loyal customers

e-Commerce Challenges

Defining an effective e-commerce model and strategy

Dealing with consumer privacy concerns Overcoming consumers’ lack of trust Security of transactions

Global Challenges for e-Commerce

Cultural challenges Language challenges Time and distance challenges Infrastructure challenges Currency challenges Product and service challenges State, regional, and national laws

Technical Limitations

Costs of a technological solution Unfamiliar protocols Reliability Insufficient bandwidth Evolution of software tools Limitation of internet accessibility

Some Preliminary Cautions for e-Commerce

Unrealistic expectations Inappropriate application Incomplete installation

Establishing an E-Commerce

Strategies for Successful E-Commerce

Companies must develop effective Web sites that include the following characteristics: Easy to use Accomplish the goals of the company Safe and secure Affordable to set up and maintain High accessibility

Defining the Web Site Functions

Decide which tasks the site must accomplish Create an attractive presence for the company Meet the needs of its visitors

Example: Obtaining information about the organization and its products

Redefining your site’s basic business model to capture new business opportunities

Establishing a Web Site

Web site hosting companies Allow you to set up a Web page and conduct e-

commerce within a matter of days Little up-front cost

Storefront broker Company that acts as an intermediary between

your Web site and online merchants who have the products and retail expertise

Building Traffic to Your Web Site

Obtain and register a domain name Make your site search-engine-friendly Include a meta tag in your store’s home page Use Web site traffic data analysis software Provide quality, keyword-rich content

Customer Behaviour

The way people find products & informationLinks from other sites 88%

Search engines 82%

Printed media 63%

Word of mouth 58%

Email 48%

Newsgroups 32%

Television 32%

Books 28%Source: Marketing Sherpa, 2005

Search Engine Statistics

Source: ClickyMedia, http://www.clicky.co.uk/, 2014

Search Engine Attraction Techniques

Put keywords on your page title <TITLE> Put and bold keywords on your content <B> Name and describe your pictures <ALT> Create a site map Avoid the use of flash Avoid the use of frameset Encourage link exchangeSource: www.seo.in.th

Top Global Internet Browsers

Source: Softpedia, Jan 2014

Maintaining and Improving Your Web Site

Personalization Tailoring Web pages to specifically target

individual consumers Explicit personalization

Captures user-provided information Implicit personalization

Captures data from customer Web sessions

Hardware

Storage capacity and computing power required of the Web server depends on: Software that will run on the server Volume of e-commerce transactions

Key decision facing new e-commerce companies Whether to host their own Web site or to let

someone else do it

Web Server Software

Security and identification Retrieving and sending Web pages Web site tracking Web site development Web page construction

e-Commerce Software

Catalog management Product configuration Shopping cart Web services

Electronic Payment Systems

Digital certificate Attachment to an e-mail message or data embedded in a Web site

that verifies the identity of a sender or Web site Certificate authority (CA)

Trusted third-party organization or company that issues digital certificates

Secure Sockets Layer (SSL) Electronic cash Credit, charge, debit, and smart cards Payments using cell phones

Advertising

Banner Stands out to the users Usually positioned at the top middle of the page Most expensive

Sidebar Able to put details Positioned at the left or right of the page

Pop-up and Floating Ads Force users to click to close the ads Users often misclick and forced to open the link

Advertising (Contd.)

PrimaryContent

Warm Warm ColdNavigation Bar

Warm

Cold

Page Footer

ColdWarm

Hot

Hot

Hot

Hot

Warm

Warm

Advertising: tarad.com

Advertising: manager.co.th

Banner Size Baht/Week Baht/Month

A1 (728x90 Pixels) Impression only

A2 (728x90 Pixels) 30,000 108,000

B1 (300x250 Pixels) 60,000 216,000

B2 (300x250 Pixels) 55,000 198,000

B3 (300x250 Pixels) 55,000 198,000

B4 (300x250 Pixels) 55,000 198,000

C1 (180x150 Pixels) 30,000 108,000

C2 (180x150 Pixels) 25,000 90,000

C3 (180x150 Pixels) 20,000 72,000

C4 (180x150 Pixels) 20,000 72,000

D (300x110 Pixels) 60,000 216,000

Advertising: bloggang.com

Advertising: dek-d.com

Pay Per Click

An Internet advertising model used on search engines, advertising networks, and content sites

Advertisers typically bid on keyword phrases relevant to their target market

Pay Per Click (Contd.)

PPC search engines Ask.com Baidu.com Business.com Google Looksmart MSN/Live Search (Microsoft adCenter) Yahoo! (Yahoo! Search Marketing)

Google Ads

Google AdWords For advertisers The advertisers are charged only if someone clicks the ad,

not when the ad is displayed Activation fee: 200.00 Baht Minimum cost per click (CPC): 0.35 Baht Minimum cost per thousand impressions (CPM): 10.00 Baht

Google Ads (Contd.)

Google AdSense For site owners Display targeted Google ads on the web pages and earn fr

om valid clicks or impressions Available for contents, search, mobile content, feeds,

video, domains, and mobile applications Earnings:

CPC ads: Site owners earn when the users click on the ads CPM ads: Site owners earn when the ad appears to a user viewing

the site

Web Statistics

Collect information Visitors, time of visits, time spent, origins,

browsers, etc Shape the business strategies

Web Statistics (Contd.)

Google Analytics Executive summary E-commerce summary Conversion summary Marketing summary Content summary Marketing optimisation Content optimisation

In-Class Assignment

Creative Thinking

Form into a group of 5 persons Discuss how can the following emerging

information technology be used to improve supply chain management and logistics Cloud computing Augmented reality Social networking

Five minutes presentation