1 Internet Glory, Collapse, and Beyond …. YuInfo Kopaonik, 8 March 2004 Borko Furht Department of Computer Science and Engineering Florida Atlantic University,

1

Internet Glory, Collapse, and Beyond ….

YuInfoKopaonik, 8 March 2004

Borko FurhtDepartment of Computer Science and

EngineeringFlorida Atlantic University, Boca Raton

borko@cse.fau.edu

2

Just A Few Years Ago …

3

Today

Yahoo Stock Chart

4

Internet Glory:New Programs

5

Internet Glory:New Businesses

6

Internet Glory:New Millionaires

My students: Carlos

Cardona and Craig PerriotFounded in

1999

Yupi.com

7

yupi.com is now msnyupi.com

8

Professor Receives Jaguar from Ex-Student

9

2000-2002Internet Collapse

Internet companies going out of business

If your company’s name has .com in the name, you have no chance to get venture capital

Investors are avoiding buying shares in Internet companies

Rich, young people are again poor!

10

HOWEVER,

11

Adoption of Technologies

PC and the Internet are being adopted faster than technologies that shaped the 20th century

Internet(1983)

12

Business @ The Speed of Taught

Digital Nervous System

13

Digital Nervous System

Digital Nervous System INTERNET

Basic Operations

BusinessReflexes

CustomerInteraction

Strategic Thinking

14

From ISPs to Web Services

NSF

Project

WorldWide Web

ApplicationService

Providers

InternetService

Providers

1983 1992 1996 1998 2001 2003

E-mailFile transfer

VideoconferencingVideophone

E-CommerceFinancial services

Travel servicesMedia

Healthcare services

Software applications

over the Internet

Web

Services

Distributed computingenvironment on the Web

Mobile Internet

M-Commerce

15

E-Commerce Comes of Age

Airline ticket processing cost Insurance fee

Travel agent with a computer reservationsystem

Internet

$8.00

$1.00

Source: The Emereging Digital EconomyU.S. Department of Commerce, 1998

Traditional agent

Internet

$400-700

$200-350

16

E-Commerce Benefits

Banking costs per transaction Costs per bill

Branch

Internet

$1.07

$0.01

Source: The Emereging Digital EconomyU.S. Department of Commerce, 1998

Biller cost

$1.65-2.70

$0.6-1.00Telephone

$0.52Proprietary online system

$0.015

Customer cost

$0.42

Bank cost

$0.15-0.2

Biller cost

Customer cost

$0

Bank cost

$0.05-0.1

Paper Internet

17

B2B

Business-to-Business transactions over the Internet

Companies transform themselves into e-business

Companies manage procurement, supply chains, and partner networks on-line

Elements of B2B Extranet eProcurement eMarketplace

18

Why B2B?

Focus on core competencyTime-to-marketTransaction costs are dramatically

reducedGeographic boundaries do not exist

anymoreEfficiencies and productivity

significantly improved

19

Extranet & eProcurement

Supplier

BuyersSuppliers

Buyer

Extranet eProcurement

20

eMarketplace

Suppliers Buyers

eMarketplace

21

B2B E-Commerce Forecast

0

0.2

0.4

0.6

0.8

1

1.21

99

9

20

01

20

03

Extranet

eProcur

eMarketpl

Trillion $

Source: IDC

22

Examples of B2B Solutions

Appliance dealer enters

Whirlpool partner portal.

Dealer tracks status

of shipment online.

Order is placed through

customized price list.

Whirlpool

Partner Portal from IBM allows appliance

dealers to manage orders and inventory

online.

23

Where Is The Opportunity?

B2B

Software eMarketplace

Extranet eProcurement eMarketplace Services Physical goods

24

Enterprise Application Integration (EAI) Software

HumanResources

Accounting

Procurement CRM

Inventory Sales

Enterprise

Message Bus

* Complexity - O(N) * Vitria, Active, TIBCO, Kabira

25

B2B Platform Software

Enterprise Enterprise

HumanResourcesAccounting AccountingHuman

Resources

Procurement Procurement

InventoryInventory

SalesSales

CRMCRM Message Bus

Message Bus

* Extricity, Microsoft, Vitria, WebMethods

“My database will contact your database”

26

B2B Platform Software

Enterprise

EnterpriseEnterprise

EnterpriseEnterprise

Enterprise

Same problems as in EAI

27

Electronic Hub

Enterprise

EnterpriseEnterprise

EnterpriseEnterprise

Enterprise

E-hub

Digital marketExchange

VerticalNetFreeMarkets

28

Copper - Fiber - The New Wire

29

Mobile Internet Access

Source: Ericsson

0

200

400

600

800

1000

1200

2000 2002 2004 2006

Fixed

Mobile

Internet

Subscribers

(millions)

Year

30

Bandwidth Problem

“Bandwidth is like money and sex -

only too much seems to be enough.”

Amo Penzias, former chief scientist of Bell Labs

31

Mobile Bandwidth

Current access technologies transmit at 9.6 to 19.2 Kbps TDMA - Time Division Multiple Access CDMA - Code Division Multiple Access GSM - Global System for Mobile Communication

M-commerce is possible at these rates, but not very attractive for business

2.5 G wireless technology provides speeds ~ 100 Kbps

3G wireless technology with speeds up to 2-4 Mbps

32

Data Services

2,000

0

32

64

9.6

128

144

384

1G 2G 3G

VoiceVoice

Text MessagingText Messaging

Video StreamingVideo Streaming

Still Still ImagingImaging

Audio StreamingAudio Streaming

Da

ta T

ran

sm

iss

ion

Sp

ee

d -

k b

ps

ElectronicNewspaper

RemoteMedical Service(Medical image)

Video Conference(High quality)

Telephone (Voice)

Voice Mail

E-MailFax

ElectronicPublishing

Karaoke

Video Conference(Lower quality)

JPEG Still Photos

Mobile Radio

Video Surveillance,Video Mail, Travel

Image

Audio

Voice-driven Web PagesStreaming Audio

DataWeather, Traffic, News,Sports, Stock updates

Mobile TV

E-Commerce

Video on Demand:Sports, News Weather

33

Heterogeneous Networks

Multiple air interfaces can complement each other to provide optimized coverage of a particular area

34

M-Commerce Applications

Transaction ManagementDigital Content DeliveryTelemetry ServicesSearching for Killer Applications!

Perhaps in Education!

35

Transaction Management

On-line shopping tailored to mobile phones and PDAs on-line catalogs shopping carts back office functions

Initiate and pay for purchases and services

Micro-transactions - subway fees, digital cash

36

Digital Content Delivery

Information browsing weather transit schedules sport scores ticket availability market prices

Downloading entertainment productsTransferring software, high-resolution

images, and full-motion videoInnovative video applications

37

Telemetry Services

Wide range of new applicationsTransmission of receipt of status,

sensing, and measurement information

Communication with various devices from homes, offices, or in the field

Activation of remote recording devices or service systems

38

AT&T Wireless Welcome to mlife

Find breaking news,

flight information,entertainment..

Get the latest weather forecasts

Get the business andinvestments news

Get the latest weather forecasts

Get the business andinvestments news

39

Secure Authentication

High Security Authentication, including Bio-Authentication

40

New Devices and Multimedia Applications

41

Business Collaboration

Collaborative capabilities allow on-line information sharing and communication

42

Challenges in Developing Web Applications

Market environment is changing rapidlyNew functionality is important to gain

competitive advantageTime-to-market is criticalBusiness need to

Integrate systems Automate processes Provide each other with access to key

functionality

43

Application Integration

The Challenge of Interoperation in a Heterogenous Environment

Application A Application B

?

44

Application Integration

Loosely Coupled

Application A Application B

XML

DatabaseLegacy appsERP

45

Application IntegrationBusiness-to-Business

Application Application

XML

http

Company A Company B

46

Application IntegrationWeb Services

Application

XML

Company B

ANY

47

Web Services

Web services is the distributed (WWW) computing platform on which A2A (application-to-application) applications will be built Loosely coupled, Course grained, Using standard transports (HTTP) Using XML for payload and envelope

Discoverable via directory lookupB2B is currently a popular special case of Web

services

48

Web Services

49

Components of Web Services

WSDL - Web Service Description Language WSDL addresses the problem providing a machine-readable

description of a service

SOAP - Simple Object Access Protocol Lightweight protocol for exchange of information in a distributed

environment

UDDI - Universal Description, Discovery and Integration

ebXML Messaging specification for communication

XML Signature and Encryption Provides encryption, privacy, integrity, and authentication

50

“Business Web”An application that links Web services and

itself is a Web service

New kind of applications use Web services!

51

Web Portals

A Web portal is a single, integrated point of access to information, applications, and people

Web sites that integrate: New content with existing content Server-side applications Web-based services

Based on existing Web application technology such as: Web servers J2EE (Java 2 Platform Enterprise Edition)

52

Type of Portals

Public portals (such as Yahoo) Bring together information from various sources,

applications, and people Offer personalized Web sites

Enterprise portals (or Corporate desktops) Give employees access to organization-specific

information and applications

Marketplace portals (such as eBay and ChemWeb) Trading hubs that connect sellers and buyers

Specialized portals (such as SAP) Offer an access path to specific applications

53

Web Portal - Example A portal is comprised of several windows that are

pulling information from various sources into a Web-based interface

54

55

Conclusions

The secrete to business success in the digital age is IT success

The secret to IT success is a modern, flexible infrastructure based on PC and Internet standards

Prepare for the Digital Future

“Any time there is a change, there is opportunity. So it is paramount

that an organization get energized rather than paralyzed.”

Jack Welch, CEO General Electric