1 Chapter 7 E-Commerce The Internet, Intranets, and Extranets

2 What is the Internet? The Internet connects millions of servers.

3 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

4 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

5 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

6 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

7 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

8 Intranets and Extranets intranet, an extranet, and the Internet from an individual user’s perspective

9 Intranets and Extranets Internet, intranet, and extranet potential for productivity enhancement

10 Establishing a Web Site Site Name Points of Presence Line Capacity Site Maintenance

11 Business on the Internet Business-to-Business Trading Electronic Data Interchange Exchanges and Auctions –E-catalogs

12 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

13 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.

14 Do’s and Don’ts in Web site construction for commercial purposes

15 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