Post on 04-Jan-2016
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Productivity in Goods and Services 1960 - 94
(Annual Index of output per Person – Hour, 1960=100)
Ratio Scale
100120140
160180200220240
260280300
Commercial Goods Sector
Commercial Services Sector
Will the internet increase service productivityWill the internet increase service productivity ?
IS EBUSINESS A BRIDGE IS EBUSINESS A BRIDGE FROM OLD WAY OF FROM OLD WAY OF
BUSINESS TO NEW OR BUSINESS TO NEW OR JUST ANOTHER TOOL?JUST ANOTHER TOOL?
IN GROUPS
WEBONOMICS
Technology-mediated exchanges between parties as well as electronically-based intra- or inter-organizational activities that facilitate such exchanges
LETS TAKE A LOOK AT DIFERENT ATTRIBUTES
Understanding E-commerce: Understanding E-commerce: Organizing ThemesOrganizing Themes
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
Lets Look At 4 InfrastructuresLets Look At 4 Infrastructures
1.1. Technology infrastructureTechnology infrastructure: This is both an enabler and driver of change.The hardware backbone of computers, routers, servers, fiber optics, cables, modems, etc. provide half of the technology equation.The other half includes the software and communication standards including the core protocols for the www.
2.2. Capital InfrastructureCapital Infrastructure:: Deals with getting the money to launch new businesses and finding the right people to build the business plan and seek funding sources.
3.3. Media infrastructureMedia infrastructure:: The e-commerce managers must make choices about the types of media employed(e.g., print, audio , video), the nature of the media and editorial policy(including style, content, look and feel).
4.4. Public Policy InfrastructurePublic Policy Infrastructure:: All the decisions related to strategy, technology, capital and media are influenced by laws and regulation, i.e., public policy decisions. It not only affects specific business but also direct and indirect competitors.
4 Infrastructures4 Infrastructures
A BRIEF HISTORYA BRIEF HISTORY
• Internet’s beginnings traced to memos written in 1962 MIT’s Joseph Carl Robnett Licklider outlining the galactic networking conceptgalactic 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 WWWCommunication Formats similar Development WWW
• Like internet radioradio 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?
1912 Titanic WW1 US Navy rights to airwaves
1919 RCA - Revenue Model
1922 576 stations - open to all - By 1925?
NOT ONLY THE DOT COM’S HAD DIFFICULTIES
The Web Got Ahead of ItselfThe Web Got Ahead of ItselfBUT first quarter of 2001, online sales only about 1
percent of all retail sales
WHAT ARE SOME REASONE
why Americans weren’t ready to do more Web business:
– Poor service and high prices
– Too much to choose from
– Inconsistent technology
BUT THENBUT THEN.. WEB SALES SURGED.. WEB SALES SURGED
The Growth of B2C E-commerceThe Growth of B2C E-commerce
SOURCES: Based on data from U.S. Census Bureau, 2007
The Growth of B2B E-commerceThe Growth of B2B E-commerce
SOURCES: Based on data from U.S. Census Bureau, 2007
The Growth of Web The Growth of Web ContentContent
SOURCE: Based on data from Google Inc., 2007.
Pure Pure Vs.Vs. Partial Electronic Commerce Partial Electronic Commerce
– THREE DIMENSIONS the process [physical / digital] the product (service) sold [physical / digital]; the delivery agent (or intermediary) [physical / digital]
– TRADITIONAL COMMERCE all dimensions are physical
– PURE EC all dimensions are digital
– PARTIAL EC all other possibilities include a mix of digital and
physical dimensions
NETWORKS TO NETWORKS
OR
ORGANIZED CHAOS
THE INTERNETINFRASTRUCTURE
Who Runs It?How does it Run?
– Electronic data interchange (EDI) over Value Added Networks (VANs)
– Extranets– Electronic funds transfer (EFT)– Integrated messaging systems– Shared databases– Electronically-supported supply
chain management
Types of Interorganizational Systems
1. A global networked environment is known as the
2. A counterpart within organizations, is called an
3. An extends intranets so that they can be accessed by business partners.
EC CONNECTIONS EC CONNECTIONS
– Is INTERNET and W3 same thing?
Internet
Intranet
extranet
What are Characteristics allow shared access of data 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 addressingDomain Name System(DNS) gave address recognizable letters & words instead of IP address. bu.edu/GoGlobal
3. Packet SwitchingRemedy 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
Internet ProtocolsInternet ProtocolsProtocols - 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-operableInter-operable— the system supports computers and software from different vendors. For e-commerce this means that the customers or businesses are not required to buy specific systems in order to conduct business.
LayeredLayered— the collection of Internet protocols work in layers with each layer building on the layers at lower levels.
SimpleSimple— 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-EndEnd-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.
ONE OF THE MOST IMPORTANT PROTOCOLS ONE OF THE MOST IMPORTANT PROTOCOLS
TCP/IP TCP/IP Solves the global internetworking problemSolves the global internetworking problem
Transmission Control Protocol (TCP)– Ensures that 2 computers can communicate with
one another in a reliable fashionInternet Protocol (IP)
– Formats the packets and assigns addresses packets are labeled with the addresses of the sending
and receiving computers
– 1999 version is version 4 (IPv4)Version 6 (IPv6) has just begun to be adopted
– WILL ALLOW 1 QUADRILLION COMPUTERS TO BE CONNECTED TO INTERNET!! THIS IS THE HOME “SYSTEM” NETWORK
NETWORK OF NETWORKSNETWORK OF NETWORKS
WHAT CONSITITUTES THE 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
2001: Jan 30 Egypt lost 70% + ½ western 2001: Jan 30 Egypt lost 70% + ½ western India's outbound crashed downing India's outbound crashed downing outsourcing industry. 75m from Algeria to outsourcing industry. 75m from Algeria to Bangladesh disrupted or cut off. Feb 1 Cable Bangladesh disrupted or cut off. Feb 1 Cable cut west of Dubai Middle East service again cut west of Dubai Middle East service again severly disrupted.severly disrupted.
END OF END OF INFRASTRUCTYREAND INFRASTRUCTYREAND
HISTORY HISTORY