Management Information Systems, Second Edition Effy Oz Chapter 7 The Internet, Intranets, and Extranets.

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Management Information Systems, Second EditionEffy Oz

Chapter 7Chapter 7The Internet, Intranets, The Internet, Intranets, and Extranetsand Extranets

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Learning ObjectivesLearning Objectives

When you finish this chapter, you will

Know what the Internet is.

Know the features for information exchange that can be conducted over the World Wide Web.

Understand how the Web facilitates electronic commerce.

Be able to generate basic ideas for new business ventures utilizing the Web.

Appreciate the major risks and limitations of using the

Web for business activities.

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What is the Internet?What is the Internet?The Development of the Internet

ARPANET was an open system designed for the free flow of information, but available only to members of academic institutions and some of the defense industry.

U.S. government decided to split the network into a civilian one and a military one. Civilian network became the Internet

Internet is now a network of networks.

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What is the Internet?What is the Internet?

Figure 7.1 The Internet connects millions of servers.

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What is the Internet?What is the Internet?

Growth of the Internet Number of servers

From a few hundred in 1993, to more than 43,000,000 by mid-1999

Number of users More than 200 million; increased rapidly during 1999

Commercial Online Services Companies like America Online provide “online”

service to paying subscribers on their private networks.

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What is the Internet?What is the Internet?

Figure 7.2 World growth of the Internet

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What is the Internet?What is the Internet?

Figure 7.3 The number of Internet domain servers continues to grow

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Internet DomainsInternet Domains

A domain name is assigned to each IP number.

Internet servers are grouped into different domains.

Domain names are registered by one of a group of companies authorized to assign unique names.

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Internet DomainsInternet DomainsFigure 7.4 Examples of Internet address suffixes

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Internet DomainsInternet Domains

What’s on the Internet?

E-mail and file transfer

News groups

Internet Relay Chat (IRC)

Telephoning on the Web

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The World Wide WebThe 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

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The World Wide WebThe World Wide Web

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

Common Gateway Interfaces (CGI) and Forms Allow a computer that is accessing a particular Web site to

have some similar functions

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The World Wide WebThe World Wide Web

Figure 7.5 How a CGI works

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The World Wide WebThe World Wide Web

Frames Sections of a Web page that let a browser explore a site in

different ways on the same page

VRML (Virtual Reality Modeling Language) Standard for describing interactive three-dimensional scenes

delivered across the Internet

Cookies Special file a Web site saves on the surfer’s hard disk so the

site can remember something about the surfer later

Creating Your Own Web Pages Search the Web for HTML tutorials View and study the source document of a Web page

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Intranets and ExtranetsIntranets 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

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Intranets and ExtranetsIntranets and Extranets

Figure 7.6 An intranet, an extranet, and the Internet from an individual user’s perspective

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Intranets and ExtranetsIntranets and Extranets

Figure 7.7 Internet, intranet, and extranet potential for productivity enhancement

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IntranetsIntranets

Figure 7.8 Savings resulting from the Internet, intranet, and extranet e-commerce

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Establishing a Web SiteEstablishing a Web Site

Site Name

Points of Presence

Line Capacity

Site Maintenance

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Establishing a Web SiteEstablishing a Web Site

Figure 7.9 Transfer times of a 10-MB file by different media

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Business on the InternetBusiness on the Internet

Business-to-Business Trading

Electronic Data Interchange

Exchanges and Auctions E-catalogs

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Business on the InternetBusiness on the Internet

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

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Business on the InternetBusiness on the Internet

Figure 7.10 Web-shopping benefits

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Figure 7.11 Estimated unique visitors to individual Web sites during 8/09/99-8/15/99

Business on the InternetBusiness on the Internet

Web Demographics

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Business ConsiderationsBusiness 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.

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Business ConsiderationsBusiness Considerations

Figure 7.12 The average cost to a company offering a Web site for electronic commerce

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Business ConsiderationsBusiness Considerations

Figure 7.13 Do’s and Don’ts in Web site construction for commercial purposes

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Business ConsiderationsBusiness ConsiderationsRisks 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

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The Nations:The Nations:Who is on the Net?Who is on the Net?

While the U.S. is leading in developing new technologies for the Net, other nations are not far behind.

Finland has the highest ratio of Internet servers to users.

Israeli companies are heavily involved in developing high-quality Internet phone software.

Singapore’s government has invested over $2 billion in state-of-the-art technology infrastructure.

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Figure 7.14 The number of citizens per Internet server around the world

Finland 25 Japan 470

U.S. 50 Taiwan 850

Australia 60 South Africa 930

Canada 70 South Korea 1,550

Netherlands 90 Brazil 8,000

Singapore 125 Thailand 15,000

Britain 130 Indonesia 87,000

Germany 180 China 561,000

Israel 185 India 1,200,000

Hong Kong 310

Source: Network Wizards; Killen & Associates, 1997.

The Nations: The Nations: Who is on the Net?Who is on the Net?

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Ethical and Societal IssuesEthical and Societal IssuesRoad Bumps on the Electronic SuperhighwayRoad Bumps on the Electronic Superhighway

Free Speech From the advent of the Web, ‘inappropriate’

material has been posted and disseminated throughout the world.

There have been calls to sensor what is transmitted, especially pornography, violence, and racial slurs.

Spamming Flooding a party’s e-mail box with messages

as a means of protest is disruptive.