CHAPTER 3, Business and the Internet
• The internet has changed the way people are getting recognized. Like Justine Bieber, whose talents were recognized from YouTube.
• E-Business is the conducting of business on the internet, buying and selling, and also serving customers, and collaborating with business partners.
• E-business websites must create a buzz, like Amazon has done in the bookselling industry. E-business websites are innovative, add value, and
provide useful information. The site must build a sense of community and collaboration, eventually becoming the port of entry for businesses.
• UNDERSTANDING E-BUSINESS BEGINS WITH UNDERSTANDING DISRUPTIVE TECHNOLOGY, EVOLUTION OF THE INTERNET,
ACCESSING INTERNET INFORMATION, PROVIDING INTERNET INFORMATION.
• Digital Darwinism – implies that organizations that can’t adapt to the new demands placed on them for surviving in the information age are doomed
o EXAMPLE: Polaroid went bankrupt because they failed to use Porter’s Five Forces to analyze the threat of substitute products and
services. They had two threats – one hour film processing and digital cameras – that stole their market share.
• Disruptive technology is a new way of doing things that initially doesn’t meet the needs of existing customers, like the Polaroid. They open new
markets and destroy old ones.
• Sustaining technology: produces an improved product that customers are eager to buy, like a faster car or a larger hard drive.
• Sustaining technologies provide us with better, faster, and cheaper products in established markets.
• Disruptive technologies typically cut into the low end of the marketplace and eventually evolve to displace high-end competitors and their reigning
o Sony is a perfect example of a company that entered the low end of the marketplace and evolved to displace its high-end competitors.
o Apple with their iPod, iPhone, iPad.
o IBM with personal computers.
• The internet is a business disruption.
• BUSINESS CHANGES DUE TO TECHNOLOGY:
o Publishing – anyone can publish online content. You can self-publish now instead of having to go through a publisher.
o Education and training – can be done online.
o Entertainment – iTunes, online music. Netflix.
o YOU CAN DO ANYTHING ONLINE NOW.
Evolution of the Internet
• The concept of the internet was born because the military needed a bombproof communications system.
• The system links computers throughout the country, allowing messages to get through even if a large section of the country was destroyed.
• The internet was essentially an emergency military communications system operated by the US department of Defense Advanced Research
Project Agency (ARPA), and was called ARPANET. • INTERNET is a global public network of computer networks that pass information from one to another using common computer protocols.
• PROTOCOLS are standards that specify the format of data as well as the rules to be followed during transmission.
• No one party operates the internet; however, several entities oversee the internet and set standards:
o Internet Engineering Task Force (IETF): The protocol engineering and development arm of the internet.
o Internet Architecture Board (IAB): Responsible for defining the overall architecture of the internet, providing guidance and broad direction
to the IETF.
o Internet Engineering Steering Group (IESG): Responsible for technical management of IETF activities and the Internet standards
Evolution of the WWW
• WWW is a global hypertext system that uses the internet as its transport mechanism.
• Hypertext Transport Protocol (HTTP) is the internet standard that supports the exchange of information on the WWW.
• HTTP enables web authors to embed hyperlinks in Web documents by defining universal resource locators (URLs) and how they can be used to
retrieve resources anywhere on the internet.
• WWW is growing because
o It makes it easier to compile information
o There is an information richness
o Increase in information richness, businesses can share information with numerous customers all over the world.
The Internet’s Impact on Information
• The browser made it easier to access the websites that had started to appear.
• Web pages are written in the hypertext markup language (HTML), it has links that allow the user to quickly move from one document to another.
Even when the documents are stored in different computers.
• By eliminating time and distance, the internet makes it possible to perform business in ways not previously imaginable.
• DIGITAL DIVIDE: occurs when those with access to technology have great advantages over those without access to technology.
• This is a 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 the business revolution in the computer industry caused by the move to the internet as a platform, and an attempt to understand the
rules fo success on that new platform. • Web 2.0 helps companies do better. what is causing this change? Well, billions of people around the world now has access to the internet. By 2014,
the web will be accessed by mobile devices more than by desktop computer. And over 90% of all American homes have always-on broadband
• A web mashup is a website or web application that uses content from more than one source to create a completely new service.
• Content used in Mashups is typically sourced from an application programming interface (API), which is a set of routines, protocols, and tools for
building software applications. A good API makes it easier to develop a program by providing all the building blocks. A programmer puts the blocks
• Microsoft Windows provide an API so that programmers can write applications consistent with the operating environment.
• Many people experimenting with Mashups are using Microsoft, google, ebay, amazon, flickr, and yahoo APIs, which has led to the creation of
• Mashup editors: are WYSIWYG (What you see is what you get) for mashups. They provide a visual interface to build a mashup, often allowing the
user to drag and drop data points into a web application.
THE FUTURE – Web 3.0
• A term that’s been coined with different meanings to describe the evolution of web usage and interaction among several separate paths. These
include transforming the web into a database, a move toward making content accessible by multiple non-browser applications, the leveraging of
artificial intelligence technologies, or the semantic web.
• The semantic web is an evolving extension of the WWW in which the web content can be expressed not only in natural language, but also in a
format that can be read and used by software agents, thus permitting them to find, share, and integrate information more easily.
• Web 3.0 is an evolutionary path to artificial intelligence. And the evolution toward 3D.
Transforming the Web into a Database
• The first step toward web 3.0 is the 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.
• Data-driven web is the first step on the path toward the full semantic web.
• The full semantic web stage will widen the scope such that both structured data and even what is traditionally thought of as unstrutcture or semi-
structured content (such as web pages, documents, email, etc.) will be widely available in common formats.
An evolutionary path to artificial intelligence
• Companies like IBM and Google are implementing new technologies that are yielding surprising information, such as predicting hit songs by mining
information on university music web sites. • There is also debate over whether the driving force behind Web 3.0 will be intelligent systems, or whether intelligence will emerge in a more organic
fashion, from systems of intelligent people, such as via collaborative filtering services such as delicious, Flickr, and Digg that extract meaning and
order from the existing Web and how people interact with it
The Realization of the Semantic Web and SOA
• Service-oriented architecture (SOA) is a business0driven information system architectural approach that supports integrating a business as linked,
repeatable tasks or services.
• SOA is a collection of services that communicate with each other, like passing data from one service to another or coordinating an activitiy between
one or more services.
• Enterprise architects believe that SOA can help businesses respond more quickly and cost-effectively to changing market conditions.
• This is an internalized portion of the Internet, protected from outside access, that allows an organization to provide access to information and
application software to only its employees
• Intranet is an invaluable tool for presenting organizational information as it provides a central location where employees can find information. It can
host all kinds of company-related information such as benefits, schedules, strategic directions, and employee directories.
• Intranet publishing is the ultimate in electronic publishing. Companies realize significant returns on investment (ROI) simply by publishing
information, such as employee manuals or telephone directories, on intranets rather than printed media.
• Bell Canada created an intranet for its employees to facilitate information access, creation, sharing, and use across the enterprise. Customer
service representatives use the intranet to retrieve rate plan information, phone specifications, and promotions details, improving the speed and
accuracy of the service they provide to customers.
• This is an intranet that is available to strategic allies (such as customers, suppliers, and partners).
• companies are building extranets as they begin to realize the benefit of offering individuals outside the organization access to intranet-based
information and application software such as order processing.
• Having a common area where employees, partners, vendors, and customers access information can be a major competitive advantage for an
• Walmart created an extranet for its suppliers, who can view detailed product information at all Walmart locations. Suppliers log on to Walmart's
extranet and view metrics on products such as current inventory, orders, forecasts, and marketing campaigns. This helps Walmart's suppliers
maintain their supply chains and ensure Walmart never runs out of products
• a Web site that offers a broad array of resources and services, such as email, online discussion groups, search engines, and online shopping malls.
• Not so long ago, the only way to get any return on the junk in your garage was to hold a yard sale. eBay changed all that. Now tens of thousands of
small and medium-size businesses use eBay as their primary storefront, bringing e-commerce to the people. According to eBay lore, the first item
auctioned was a broken laser pointer that sold for $14.83, proving that someone somewhere will buy just about anything. Several billion dollars'
worth of transactions later, the proof is on firmer ground than ever.
• There are general portals and specialized or niche portals. Leading general portals include Yahoo!, Netscape, Microsoft, and Canoe. Examples of
niche portals include Garden.com (for gardeners), andFool.com (for investors).
• a publicly accessible computer system that has been set up to allow interactive information browsing. In a kiosk, the computer's operating system
has been hidden from view, and the program runs in a full-screen mode, which provides a few simple tools for navigation. LIKE A SELF-
ORDERING MACHINE AT A RESTO. • Indigo Books & Music Inc., Canada's largest books retail chain, offers in-store customers access to Web kiosks as part of its commitment to
providing a stress-free, service-driven approach to satisfying book and music lovers
Providing Internet Information
• There are three common forms of service providers, including: Internet service provider (ISP), Online service provider (OSP), Application service
Internet Service Provider, ISP
• a company that provides individuals and other companies access to the Internet along with additional related services, such as Web site building.
• ISP has the equipment and the telecommunication line access required to have a point of presence on the Internet for different geographic areas.
Larger ISPs have their own high-speed leased lines so they are less dependent on telecommunication providers and can deliver better service to
their customers. Among the largest national and regional ISPs are Bell Internet, Shaw, Telus, Rogers, Videotron, and Cogeco.
• The features of ISP are
o Web hosting: housing, serving ,and maintaining files for one or more websites
o Hard-dish storage space: smaller sites need 300-500 MB of website storage space, whereas other e-business sites may need at least
10GB of space or their own dedicated web server.
o Availability: a site must be accessible to customers 24/7. ISPs maximize the availability of the sites they host using techniques such as
load balancing and clustering many servers to reach 100% availability.
o Support: there is limited worry about keeping a web server running. ISPs offer 24/7 customer service.
• Another member of the ISP family is the wireless Internet service provider (WISP), an ISP that allows subscribers to connect to a server at