CIS 310 Management Information Systems

The Internet

History of the Internet

• 1968: ARPANET early military network • 1971: FTP people can transfer files to other

computers.• 1971: Email invented.• 1973: Vinton Cerf Invents TCP/IP (Transmission

protocol for the Internet).• 1977: PC Modems developed by Dennis Hayes

and Dale Heatherington

History of the Internet (contd.)

• 1984: Domain Name System (DNS) developed, making it easier to remember names of where you were trying to go.

• 1989: AOL started.• 1991: First Web page created by Tim Berners-

Lee. Based on hypertext. Developed into hypertext transfer protocol (http) that prefixes every page.

• 1993: Mosaic – first graphic web browser.

1993

1993

History of the Internet (contd.)

• 1995: Commercial Internet (eBay-Echo Bay and Amazon started).

• 1996: Hotmail started• 1998: Google & Napster started• 2000: .bomb - .com bubble burst• 2001: Wikipedia started.• 2003: MySpace • 2004: Social Media / Web 2.0, Facebook• 2005: YouTube, Twitter

Growth of Retail Sales

How does that work?

1. Request a Web Site 2. Look up the domain name. Find the IP address.

Send the request to the host.

Send the Website to the user.

DNS

Web Server

How does that work 2?

DNS

Web Serverhttp://en.wikipedia.org/wiki/File:Internet_map_1024.jpg

Internet: A network of Networks.

A distributed network of distributed networks.

Domain Names

• Domain name is our common way of referring to web sites.– Coke.com– Csupomona.edu– Whitehouse.gov– Twit.tv

• Purchase your own domain name:– RuthGuthrie.com at GoDaddy.com

IP Addresses

• IP Address is the number identification that routes our messages. It is a number representation or the domain name.

• IP address looks like 123.123.123.123 – each division of the four numbers can be between 0 and 255.

• http://www.checkmyipaddress.org/ (134.71.168.231)

• 216.64.210.28 = coke (http://www.hcidata.info/host2ip.htm)

• Static or dynamic

Domain Name Extensions

• .com• .edu• .gov• .mil• .net• .org

• .biz• .info• .mobi• .xxx

Country Codes• .tv – Tuvalu (VeriSign)• .au - Austrailia• .bb – Barbados• .us – United States

Then and Now

1992

• No advertising online• No businesses online• Dial up modems• People used to go on

only at night so that they didn’t ‘clog up the network’.

• No video – too slow.• People hated

advertising.

Now

• Everything is online• Advertising permeates

everything.• Movies & Music

distributed over the Internet.

• Online banking.• Online travel booking.• Retail sales.

Web Evolution

• 1.0 – connected (1991-2003) – connecting pages and data

Amazon, Library, Maps• 2.0 – social – connecting people and relationships

Facebook, Online Gaming, Pinterest• 3.0 – semantic tagging of content – more like

human language“I need gas and some quick food to eat.”“ I want to see an action movie and eat after

the movie. Where can I go near here?”

Disruptive vs. Sustaining Innovation

• 1997, The Innovator’s Dilemma, Clayton Christensen.

• Sustaining technology gives incremental improvements to what you already do. Make is faster, stronger, cheaper.

• Disruptive technology fundamentally changes the way things are done.

• Disruptive technologies typically are crude, have problems and a small audience. Their appeal grows as they refine the technology.

Examples of Disruptive vs. Sustaining Technologies

• Disruptive– Car– Downloadable media – Web

• Sustaining – HDTV– CRM (Customer Relationship Management)– Hybrid Cars

End

• What is the protocol for the Internet?

• What two people are considered the fathers on the Internet?

• Describe the three evolutionary phases of the Web. 1.0, 2.0 and 3.0.

TCP/IP

1.0 Connected2.0 Social3.0 Natural Language

Vinton Cerf & Tim Berners-Lee

CIS 310 Management Information Systems

eCommerce

Internet Enabled Business

• Purchase roses for valentines day:– Florist 1800 Flowers

• Book a trip to Hawaii– Travel Agent Orbitz, PriceLine, Kayak

• Summary of daily coffee sales– Weekly Reports Real Time Sales

• Buy a used book– Bookstore, Student Amazon, eBay, Chegg

Types of eBusiness

Business Consumer

Business

Consumer

B2BManufacturersWholesalers

C2BPricelineYouTube

B2CAmazonNetflix

C2CeBayCraigslist

Types of B2C Businesses

• Brick-and-Mortar

• Click-and-Mortar

• Pure-Play, Virtual Business

eCommerce

• Massive disruptive technology.• Made possible because of visual browsers, low

cost computing and faster schemes for data transmission.

Advantages of eCommerce

• Reduced Cost• Efficiency• Effectiveness• Expand Reach• Opening new markets

Reduced Cost & Efficiency

• Electronic interactions are faster and cheaper.• Require fewer people• Data gets to where it needs to go quicker and

with fewer errors• Get revenue from customers faster with

electronic funds transfer

Improved Effectiveness

• Example: IBM and search words for laptops led to a 300% increase in sales in a month.

• Capture what users are doing and sell to those behaviors.

• Analytics helps a company examine, quantify and visualize data to improve effectiveness.

Expand Global Reach

• Local company, limited by geography, can only sell to local customers.

• Online company can sell to an entire planet of customers, 24x7.

• Information Richness – How much detail you have online about your products and services.

• Information Reach – How many people you can inform about your products and services.

• Caution: need to have infrastructure to support a global business, not just products online.

Open New Markets

• New products– Digital products– Distribution of digital products– New industries (Tablets, Apps)

• Intermediaries– Disintermediation– Re-intermediation

Intermediation

• Disintermediation– “Get rid of the middle man”: eliminate the agent

in the middle, saving money by eliminating their cut of the profit.

– Travel Agents, Insurance Salesmen, Netflix• Re-intermediation– Become the middle man by adding a service

between a customer and supplier.– Ticketmaster

Types of Online Sales/Service

• Selling Products (Amazon, Macys, Target)• Service Providers (DropBox, Flickr, Facebook)• Portals (Google, Yahoo, MSN)• Transaction Brokers (online investing, betting)• Content Provider (news, movies, blogs)• Info-mediaries (Zillow, Bluebook)

mCommerce Stats (factbrowser.com)

• 18% of US shoppers used a smartphone or tablet to access a retail Website during CyberMonday 2012. (up 70% from 2011)

• US retail mobile commerce sales will increase 56% in 2013 – 15% of all ecommerce.

• More than 62% of moms with smartphones use a shopping app and 46% want to receive information on their mobile device while inside the store.

• 9% of shopping in Korea is on a mobile phone.

End

• Is Von’s Supermarket a brick and mortar company?

• Is Von’s Supermarket B2B or B2C business?

• How does an online business make money if it isn’t through sales?

No. They offer online grocery sales too, making them Click and mortar.

Both. Vons has customers and suppliers.

Services, advertising, and subscriptions are other ways to make money.