1. Enterprise Network and Electronic Commerce

2. Learning Objectives Define the elements of an enterprise network (EN) architectureDefine the elements of an enterprise network (EN) architecture Define the business drivers for ENDefine the business drivers for EN Evaluate what organization structures are suitable for effective ENEvaluate what organization structures are suitable for effective EN Define capabilities of Internet and E-commerceDefine capabilities of Internet and E-commerce Define benefits of Internet and E-commerceDefine benefits of Internet and E-commerce Contrast various business models of E-commerceContrast various business models of E-commerce Contrast the different types of portalsContrast the different types of portals Evaluate where we are headed - integration of telecommunications, content providers, and portals.Evaluate where we are headed - integration of telecommunications, content providers, and portals.

4. INFORMATION SYSTEM INFORMATIONSYSTEM BUSINESSCHALLENGE BUSINESSSOLUTIONS MANAGEMENTINFORMATIONTECHNOLOGYORGANIZATION COMPLETE CHANGE OF MINDSET SUCCESSFUL INTERNET BUSINESS MODEL CENTRALIZATION VS. DECENTRALIZATION

5. ENTERPRISE NETWORK HARDWARE; SOFTWARE; TELECOMMUNICATIONS, DATA RESOURCESHARDWARE; SOFTWARE; TELECOMMUNICATIONS, DATA RESOURCES MORE COMPUTING POWER ON THE DESKTOPMORE COMPUTING POWER ON THE DESKTOP NETWORK LINKING SMALLER NETWORKSNETWORK LINKING SMALLER NETWORKS*

6. CLIENT / SERVER MODEL SPLITS PROCESSING CLIENTCLIENT SERVERSERVER*

7. CLIENT USER POINT - OF - ENTRYUSER POINT - OF - ENTRY COMPUTER / WORKSTATION / LAPTOPCOMPUTER / WORKSTATION / LAPTOP USER INTERACTS WITH CLIENTUSER INTERACTS WITH CLIENT THRU GRAPHICAL USER INTERFACE (GUI)THRU GRAPHICAL USER INTERFACE (GUI) ENTER & RETRIEVE DATAENTER & RETRIEVE DATA ANALYZE & REPORTANALYZE & REPORT*

8. SERVER COMPUTER SATISFIES USER’S NEEDSCOMPUTER SATISFIES USER’S NEEDS NOT VISIBLE TO USERNOT VISIBLE TO USER PROCESSINGPROCESSING ACCESS TO DATABASESACCESS TO DATABASES*

9. TYPES OF CLIENT/SERVER COMPUTING (Fig. 10.3 on p. 7) Distributed PresentationDistributed Presentation Remote PresentationRemote Presentation Distributed LogicDistributed Logic Remote Data ManagementRemote Data Management Distributed DatabaseDistributed Database*

10. Business Drivers Streamline Business ProcessesStreamline Business Processes Flatten organizationFlatten organization Increase knowledge worker productivity and effectivenessIncrease knowledge worker productivity and effectiveness FlexibilityFlexibility

11. PROBLEMS POSED BY ENTERPRISE NETWORKING CONNECTIVITY PROBLEMSCONNECTIVITY PROBLEMS LOSS OF MANAGEMENT CONTROLLOSS OF MANAGEMENT CONTROL ORGANIZATIONAL CHANGESORGANIZATIONAL CHANGES HIDDEN COSTS OF CLIENT / SERVER COMPUTINGHIDDEN COSTS OF CLIENT / SERVER COMPUTING NETWORK RELIABILITY & SECURITYNETWORK RELIABILITY & SECURITY*

12. SOME SOLUTIONS MANAGING THE CHANGEMANAGING THE CHANGE EDUCATION & TRAININGEDUCATION & TRAINING DATA ADMINISTRATION DISCIPLINEDATA ADMINISTRATION DISCIPLINE PLANNING FOR CONNECTIVITYPLANNING FOR CONNECTIVITY*

13. INTERNETWORKING LINK NETWORKSLINK NETWORKS EACH RETAINS IDENTITYEACH RETAINS IDENTITY INTO INTERCONNECTED NETWORKINTO INTERCONNECTED NETWORK*

14. Electronic Commerce Basics The Net may become a mass medium for home shopping, banking, and a host of other servicesThe Net may become a mass medium for home shopping, banking, and a host of other services It’s like a virtual worldwide mallIt’s like a virtual worldwide mall –Internet is available in over 200 countries; at least 50,000 networks –membership grows by at least 10% per month –low overhead; no bricks and mortar –open 24 hours per day –learn about consumers via buying habits

15. Cybershoppers Nearly 100 million people worldwide are online todayNearly 100 million people worldwide are online today –This number is expected to reach 320 million by 2002 Cybershoppers spent an estimated $211 billion in 1998Cybershoppers spent an estimated $211 billion in 1998 –This number is expected to reach $954 billion by 2001 (source p. 30 PCMag, Feb 9, 1999)

16. INTERNET SERVICE PROVIDER (ISP) COMMERCIAL ORGANIZATION WITH PERMANENT CONNECTION TO INTERNET SELLS TEMPORARY CONNECTIONS TO SUBSCRIBERS *

17. CAPABILITY CAPABILITY FUNCTIONS SUPPORTED FUNCTIONS SUPPORTED E -MAIL E -MAIL PERSON -TO-PERSON MESSAGING; DOCUMENT SHARING PERSON -TO-PERSON MESSAGING; DOCUMENT SHARING USERNET NEWSGROUPS USERNET NEWSGROUPS ELECTRONIC BULLETIN BOARDS ELECTRONIC BULLETIN BOARDS CHATTING CHATTING INTERACTIVE CONVERSATIONS INTERACTIVE CONVERSATIONS TELNET TELNET LOG ON ONE COMPUTER, WORK ON ANOTHER LOG ON ONE COMPUTER, WORK ON ANOTHER GOPHERS GOPHERS LOCATE TEXT USING HIERARCHY OF MENUS LOCATE TEXT USING HIERARCHY OF MENUS ARCHIE ARCHIE SEARCH DATABASES FOR FILES AVAILABLE FOR DOWNLOADING SEARCH DATABASES FOR FILES AVAILABLE FOR DOWNLOADING WAIS WAIS LOCATE FILES IN DATABASES USING KEYS LOCATE FILES IN DATABASES USING KEYS FTP FTP TRANSFER FILES FROM COMPUTER TO COMPUTER TRANSFER FILES FROM COMPUTER TO COMPUTER WORLD WIDE WEB WORLD WIDE WEB HYPERTEXT LINKS TO RETRIEVE/FORMAT/DISPLAY INFORMATION HYPERTEXT LINKS TO RETRIEVE/FORMAT/DISPLAY INFORMATION INTERNET CAPABILITIES

18. PEOPLE-TO-PEOPLE COMMUNICATION E-MAIL: International “Post Office”E-MAIL: International “Post Office” USENET: On-line Forums on a TopicUSENET: On-line Forums on a Topic LISTSERV: e-mail Discussion GroupsLISTSERV: e-mail Discussion Groups CHATTING: Live, Interactive ConversationsCHATTING: Live, Interactive Conversations “FLAMING”: Rude, Discourteous Behavior“FLAMING”: Rude, Discourteous Behavior*

19. RETRIEVAL ON THE INTERNET FILE TRANSFER PROTOCOL (FTP):Easy Tool for Transferring Remote FilesFILE TRANSFER PROTOCOL (FTP):Easy Tool for Transferring Remote Files ARCHIE: Tool for Key-word Searches of Databases; Provides File NamesARCHIE: Tool for Key-word Searches of Databases; Provides File Names GOPHER: Character-oriented tool; Locates Text Thru Easy-to-use MenusGOPHER: Character-oriented tool; Locates Text Thru Easy-to-use Menus VERONICA: Searches for Key Words in GopherVERONICA: Searches for Key Words in Gopher WIDE AREA INFORMATION SERVERS (WAIS): Tool for Key-word Searches of Databases; Requires Database NamesWIDE AREA INFORMATION SERVERS (WAIS): Tool for Key-word Searches of Databases; Requires Database Names*

20. WORLD WIDE WEB (WWW) STANDARDS TO STORE, RETRIEVE, FORMAT, DISPLAY INFORMATIONSTANDARDS TO STORE, RETRIEVE, FORMAT, DISPLAY INFORMATION CLIENT-SERVER ARCHITECTURECLIENT-SERVER ARCHITECTURE GRAPHICAL USER INTERFACEGRAPHICAL USER INTERFACE DYNAMIC LINKS TO OTHER DOCUMENTS (“hot links”)DYNAMIC LINKS TO OTHER DOCUMENTS (“hot links”) EXPLOSION IN BUSINESS USEEXPLOSION IN BUSINESS USE*

21. WORLD WIDE WEB (WWW) HYPERTEXT MARKUP LANGUAGE (HTML):Hypertext Tool to Create Dynamic Links to Same or Other DocumentsHYPERTEXT MARKUP LANGUAGE (HTML):Hypertext Tool to Create Dynamic Links to Same or Other Documents BROWSER: Tool Supports Graphics, Hyperlinks, to Navigate WebBROWSER: Tool Supports Graphics, Hyperlinks, to Navigate Web SEARCH ENGINE: Tool for Locating Sites, Information on Internet / WWWSEARCH ENGINE: Tool for Locating Sites, Information on Internet / WWW*

22. WORLD WIDE WEB (WWW) HOME PAGE: WWW Text / Graphics Screen; Welcomes User; Introduces Organization; Starting Screen for DocumentHOME PAGE: WWW Text / Graphics Screen; Welcomes User; Introduces Organization; Starting Screen for Document WEB SITE: All WWW Pages Maintained by an Organization.WEB SITE: All WWW Pages Maintained by an Organization.*

23. WWW NEEDS FUNCTIONAL ARCHITECTURE: Consistent Link to Internet / WWWFUNCTIONAL ARCHITECTURE: Consistent Link to Internet / WWW STRUCTURAL ARCHITECTURE: Internal Arrangements of all FilesSTRUCTURAL ARCHITECTURE: Internal Arrangements of all Files NAVIGATIONAL ARCHITECTURE: Consistent Linkages Within Document and to OthersNAVIGATIONAL ARCHITECTURE: Consistent Linkages Within Document and to Others*

24. ELECTRONIC COMMERCE DOING BUSINESS ELECTRONICALLYDOING BUSINESS ELECTRONICALLY AUTOMATION OFAUTOMATION OF –BUSINESS - TO -BUSINESS TRANSACTIONS –BUSINESS - TO - CONSUMER TRANSACTIONS *

25. NEW BUSINESS MODELS CATALOG SITE: Electronic Catalog for On-line SalesCATALOG SITE: Electronic Catalog for On-line Sales ONSALE: On-line auction uses e-mailONSALE: On-line auction uses e-mail ELECTRIC MINDS: Cyberspace Community features Technology & CultureELECTRIC MINDS: Cyberspace Community features Technology & Culture TRIPOD: Career Info for College StudentsTRIPOD: Career Info for College Students*

26. GENERIC INTERNET BENEFITS REDUCES COMMUNICATION COSTSREDUCES COMMUNICATION COSTS REDUCES TRANSACTION COSTSREDUCES TRANSACTION COSTS ENHANCES COMMUNICATION; COORDINATIONENHANCES COMMUNICATION; COORDINATION ACCELERATES KNOWLEDGE RETRIEVAL AND DISTRIBUTIONACCELERATES KNOWLEDGE RETRIEVAL AND DISTRIBUTION ELECTRONIC COMMERCEELECTRONIC COMMERCE

27. INTRANET INTERNAL NETWORKINTERNAL NETWORK WWW TECHNOLOGYWWW TECHNOLOGY FIREWALL: Security System to Prevent Invasion of Private NetworksFIREWALL: Security System to Prevent Invasion of Private Networks OVERCOMES COMPUTER PLATFORM DIFFERENCESOVERCOMES COMPUTER PLATFORM DIFFERENCES OFTEN INSTALLED ON EXISTING NETWORK INFRASTRUCTUREOFTEN INSTALLED ON EXISTING NETWORK INFRASTRUCTURE*

28. EXTRANET PRIVATE INTRANET ACCESSIBLE TO SELECT OUTSIDERS LINK ORGANIZATION TO IMPORTANT CLIENTSIMPORTANT CLIENTS BUSINESS PARTNERSBUSINESS PARTNERS TOP EXECUTIVES & BOARD MEMBERSTOP EXECUTIVES & BOARD MEMBERS*

29. INTERNET CHALLENGES SECURITY: Exposure to Thieves & Vandals; Hackers Steal, Use Passwords; Not Yet Safe for Large Business TransactionsSECURITY: Exposure to Thieves & Vandals; Hackers Steal, Use Passwords; Not Yet Safe for Large Business Transactions TECHNOLOGY: Lack of Uniform Standards; Transfer of Graphics, Video can be CostlyTECHNOLOGY: Lack of Uniform Standards; Transfer of Graphics, Video can be Costly LEGAL ISSUES: Need More Laws Governing Electronic Commerce; Are e- mail Contracts, Electronic Signatures Legal?LEGAL ISSUES: Need More Laws Governing Electronic Commerce; Are e- mail Contracts, Electronic Signatures Legal?*

30. CONNECTIVITY MEASURE OF ABILITY OF COMPUTING DEVICES TO PASS & SHARE INFORMATION WITHOUT HUMAN INTERVENTION OPEN SYSTEMS: Software Able to Function on Different Computer Platforms. Nonproprietary Operating Systems, Applications, Protocols OPEN SYSTEMS: Software Able to Function on Different Computer Platforms. Nonproprietary Operating Systems, Applications, Protocols*

31. Emergent business models: Internet Portals: New generation of web-related servicesNew generation of web-related services 3C’s3C’s –Content –Communication –Communities

32. Portals Web-based window to information on defined subjectsWeb-based window to information on defined subjects Contrast Yahoo from Auto-by-TelContrast Yahoo from Auto-by-Tel Technology support for consumers of informationTechnology support for consumers of information Technology support for suppliers of informationTechnology support for suppliers of information Technology support for market transactionsTechnology support for market transactions Distinction between horizontal and vertical portalsDistinction between horizontal and vertical portals

33. Web-based Portals

34. Traditional to new Auction/classifiedAuction/classified Chat/communityChat/community ShoppingShopping EntertainmentEntertainment Finance/investingFinance/investing GamingGaming People findersPeople finders Search enginesSearch engines

35. What AOL’s Acquisition of Netscape Means for E- Commerce In November 1998, AOL announced a $4.2 billion stock deal to acquire Netscape--and an alliance between them and SunIn November 1998, AOL announced a $4.2 billion stock deal to acquire Netscape--and an alliance between them and Sun AOL gets the Netscape browser and the software needed to put up storefronts on the webAOL gets the Netscape browser and the software needed to put up storefronts on the web The deal also makes AOL the biggest portal on the WebThe deal also makes AOL the biggest portal on the Web

36. Amazon vs. Barnes & Noble: A Comparison AmazonAmazon –1 web site –3.1 million titles –306% sales growth last quarter –$375,000 in annual sales per employee –24 inventory turnovers per year –long term capital requirements: LOW Barnes & NobleBarnes & Noble –1,011 stores –175,000 titles per store –10% sales growth last quarter –$100,000 in annual sales per employee –3 inventory turnovers per year –long term capital requirements: HIGH

37. Amazon vs. Barnes & Noble: A Comparison AmazonAmazon –No direct warehousing, sales and rental costs –Wholesalers and suppliers ship most products –Customers co-create value by posting book reviews and recommendations –Software agents can be used by customers to alert them to special offers and new arrivals Barnes & NobleBarnes & Noble –substantial warehousing, sales and rental costs –Products shipped by B&N –Value co-creation limited to book club meetings, or author speeches at defined locations at defined times –Traditional channels used to inform customers about special programs and new arrivals

38. Redefining Business Models Online services for ordering, configuring, customizing and supporting products at CiscoOnline services for ordering, configuring, customizing and supporting products at Cisco –Increasing proportion of online ordering –Custom configuration by customers –Reduces customer’s hassles for product integration into network –Support functions moved online leading to reduced technical support Customer co-creation of value at GECustomer co-creation of value at GE –Tech tip of the week