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ITM 102 (293)
Chapter 3

Chapter 3 - Textbook Notes.docx

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Ryerson University
Information Technology Management
ITM 102

Chapter 3­ The internet and e­business 3.1 Business and the internet - e-business: the conducting of business on the internet, not only buying and selling but also serving customers and collaborating with business partners - e-business is not just a website, it has to create a buzz - to understand e-business, you must understand: o disruptive technology o evolution of the internet o accessing internet information o providing internet information D ISRUPTIVE TECHNOLOGY - ex: Polaroid o was so popular and innovative but eventually went bankrupt due to substitute better products in the future - digital Darwinism: implies that organizations cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction - disruptive technology: new way of doing things that initially does not meet the needs of existing customers o opens new market and destroys old ones - sustaining technology: produces an improved product that customers are eager to buy o ex: faster cars, larger hard drives o provides us with better, faster and cheaper products in established markets o this is more used - The innovator’s dilemma: companies that may have placed too much emphasis on satisfying customer’s current needs, and not adopting new disrupting technology causes those companies to go bankrupt E VOLUTION OF NTERNET - Internet: a global public network of computer networks that pass information from one to another using common computer protocols - Protocols: standards that specify the format of data as well as the rules to be followed during transmission - Internet not operated by one party, several entities oversee the internet and set standards - The terms internet and world wide web are not the same o In early days, internet was restricted to non-commercial activities o World wide web came along and changed the purpose and use of the internet - World wide web (WWW): global hypertext system that uses the internet as its transport mechanism - Hypertext transport protocol (HTTP): the internet standard that supports the exchange of information on the WWW. o allows web authors to embed hyperlinks (URL) - WWW was text based until 1991 o Tims berners lee : built the first website that taught people how to build a browser and set up a web server o Marc andreesen: developed NCSA, a computer program. This is the first browser - Digital divide: occurs when those with access to technology have great advantages over those without access to technology - The microcomputer revolution made it possible for average person to own a computer - Information richness: the depth and breadth of information transferred between customers and businesses - Information reach: number of people a business can communicate with WEB 2.0 - Set of economic, social and technology trends that collectively form the basis for the next generation of the internet- a more mature, distinctive medium characterized by user participation, openness, and network effects - Web 2.0 is a change in how software developers and end users use the web - Web 2.0 is next generation, user-driven, intelligent web - Web mashup: a website or web application that uses content from more than one source to create a completely new service o API – application programming interface: contents used in mashups are sourced with this o Mashup editors: WYSIWYG – what you see is what you get THE FUTURE - WEB 3.0 - Describes the evolution of web usage o Transforming the web into a database  Emergence of the data-driven web as structured data records are published to the web in formats that are reusable and able to be queried remotely o An evolutionary path to artificial intelligence o The realization of semantic web and service oriented architecture  Service-oriented architecture SOA- a collection of services that communicate with each other o Evolution toward 3D A CCESSING INTERNET INFORMATION - Organizations use the internet to share and access information - 4 common tools for accessing internet information include: o Intranet o Extranet o Portal o kiosk intranet - internalized portion of the internet, protected from outside access - only allows an organization to provide access to information and application software to employees – insiders - provides a central location where employees can find info o can host benefits, schedules, strategic directions, employee directiories - intranet publishing = ultimate in electronic publishing - huge returns on investments Extranet - is intranet that is available to strategic allies (such as customers, suppliers and partners) - ex: order processing for walmart suppliers portal - generic term for a technology that provides access to information - portal: a website that offers a broad array of resources and services, such as email, online discussion groups, search engines and online shopping malls - niche portals- specialty portals kiosk - publicly accessible computer system that has been set up to allow interactive information browsing - provides only a few simple tools for navigation - ex: the kiosk at chapters to allow users to search for books P ROVIDING INTERNET INFORMATION - many companies use service providers to supply access to internet information - 3 common forms of service providers: o Internet service provider ISP o Online service provider OSP o Application service provider ASP Internet service provider - A company that provides individuals and other companies access to the internet along with additional related services such as web site building - Ex: bell internet, rogers, telus - More than 350 ISPs in Canada - Wireless internet service provider WISP o An ISP that allows subscribers to connect to a server at designated hotspots or access points using a wireless connection  Provides coverage in zone covered by antenna • Ex: T-mobil international provides WISP to starbucks, airports Online service provider - Offers an extensive array of unique services such as its own version of a web browser Application service provider - A company that offers an organization access over the internet to systems and related services
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