Chapter 9 Enhanced Version Infrastructure Exhibits/Tables October 22, 2000.
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Transcript of Chapter 9 Enhanced Version Infrastructure Exhibits/Tables October 22, 2000.
Chapter 9 Enhanced Version
Infrastructure
Exhibits/Tables
October 22, 2000
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Exhibit 9-1: Network and Media Convergence
Telephone
DSL
Cable Modem
Satellite
Wireless
Print (Newspapers/ Magazines)
Television
Radio
Music
Motion Pictures
DigitalConvergence
DigitalConvergence
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Supporting Slide 9-A: Media Convergence to a Digital Platform
Newspapers
Magazines
Television
Radio
Music
Motion Pictures
Personal Computers
Handheld Computers
PCS Phones
Wireless Printers
Household Devices
Digital PlatformDigital Platform
1970’s 1980’s 1990’s 2000’s 2010’s 2020’s
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Supporting Slide 9-B: Marketshare of Personal Computer
Manufacturers of PCs Shipped in the United States and Worldwide
— 2nd Quarter 1999
United States
Dell 16.6%
Compaq 16.5%
IBM 8.1%
Gateway 7.8%
Hewlett-Packard 7.8%
Others 43.3%
Source: International Data Corporation (September 1999)
Worldwide
Dell 10.9%
Compaq 14.4%
IBM 9.0%
Hewlett-Packard 6.4%
NEC / Packard Bell 4.9%
Others 54.3%
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Supporting Slide 9-C: PCMicroprocessors: Marketshare (First
Quarter 2000)
Source: “High Demand For, Chips Lift Intel Earnings”, Wall Street Journal , April 19, 2000
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Table 9-1: Number of US Computer Users and US Internet
Households — 1994 to 1999
InternetUsers
PercentComputer
HouseholdsPercent
1994 - - - -
1995 - - 33.2 34.0%
1996 8.5 8.6% 38.2 39.1%
1997 14.5 14.5% 44.0 44.0%
1998 24.4 24.2% 47.8 47.3%
1999 28.0 27.5% 51.9 51.0%
2000e 32.0 31.3% 55.1 53.8%
2001e 35.3 34.2% - -
2002e 44.0 42.5% - -
Source: US Department of Commerce. 1999. Cited in The New York Times 2000 Almanac, .
US Computer Users and US Internet Households — 1994 to 1999
(Millions)
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Table 9-2: PC Operating Systems Marketshare in 1999
Source: http://www.mycomputer.com. Cited in Lake, David. 2000. Microsoft dominates PC operating systems. Industry Standard, 3 April.
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Exhibit 9-2: How Information Transfers Over The Internet
Computers on the Internet work together to transfer information back and forth around the world.
Download and Upload You download information from other computers on the Internet.You upload information to other computers on the Internet.
BackboneThe Internet backbone is a set of high-speed data lines connecting major networks all over the world.
RouterA router regulates traffic on the Internet and picks the most efficient route for each packet. A packet may pass through many routers before reaching its destination.
TCP/IPTransmission Control Protocol / Internet Protocol (TCP/IP) is a language computers on the Internet use to communicate with each other. TCP/IP divides information into packets and sends the packets independently across the Internet. When information arrives at the intended destination, TCP/IP ensures that all the packets arrived safely and reassembles the original information.
PacketsInformation over the Internet is broken down into smaller pieces called packets.
Source: Whitehead, Paul and Ruth Maran. 1997. Teach yourself the Internet and the World Wide Web visually. Indianapolis: IDG Books Worldwide, Inc.
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Supporting Slide 9-D: Point- Counterpoint: The Microsoft Case
Microsoft should be broken upMicrosoft should be broken up
A break-up will assure that future anti-trust abuses will reoccur in the future
A break-up will increase innovation within the industry
New products and services will emerge in the future, strengthening the economy
A break-up will assure that future anti-trust abuses will reoccur in the future
A break-up will increase innovation within the industry
New products and services will emerge in the future, strengthening the economy
Microsoft should not be broken upMicrosoft should not be broken up
Microsoft did not harm the consumer through price fixing tactics
A breakup will lead to chaos as the Windows operating system will be less of an uniform platform
A breakup will hurt many of the independent contractors who support Microsoft products
Microsoft did not harm the consumer through price fixing tactics
A breakup will lead to chaos as the Windows operating system will be less of an uniform platform
A breakup will hurt many of the independent contractors who support Microsoft products
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Exhibit 9-3: Growth in Internet Host Computers and Major E-
Commerce Developments
100
1,000
10,000
100,000
1,000,000
10,000,000
100,000,000
1982 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98*
Number of Hosts
(Log Scale)
Note: *New methodology used in January 1998Source: OECD. 1998.
1969 Internet /
ARPAnet created 1989WWW HTML
language created
1991NSF lifts restrictions on
commercial use of internet
1994 Netscape releases navigator browser
1995 Dell, Cisco, and Amazon begin to aggressively use internet for
commercial transactions
1993Mosaic browser invented at University of Illinois is released to public
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Exhibit 9-4: Web Browser Market Share (1994 to 2000)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-94 Jun-95 Dec-95 Jun-96 Dec-96 Jun-97 Dec-97 Jun-98 Dec-98 Jun-99 Dec-99 Jun-00
NavigatorInternet ExplorerOther
Evolution of the Web Browser Market (%)
Source: Acknowledge, Dataquest, ZD Market Intelligence, Zona Research, and casewriter estimates.
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Exhibit 9-5: IDC Predicts 179 Million Americans Online by 2003
50
100
150
200
1999 2000 2001 2002 2003
CommerceNet/NielsenCyber Dialogue (Aggressive)Cyber Dialogue (Conservative)International Data Corp.Jupiter / NFO
U.S. Online Population Forecasts by Researcher
Population(Millions)
Source: Companies Listed.
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Table 9-3: What Users Do Online
Percentage Of Users Who Say They Go Online For Each Of The Following At Least Once A Month
E-mail 96%
Use Search Engine 88%
Research Products / Services 72%
Local Content 58%
Online Directory 58%
E-greeting / Postcards 55%
Download Free Software 54%
Daily News 51%
Instant Message 51%
Contest Sweepstakes 49%
Travel Research 47%
Online Chat 45%
Health Sites 45%
View Classified 43%
Music Sites 40%
Create of View Personal Web Pages 40%
Work Research 40%
Play Games 38%
Check Stocks / Quotes 37%
Source: Wall Street Journal. 1999. A wide net, 6 December.
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Table 9-4: Factors Users Say Will Increase Their Overall Internet Use
Factors Users Say Will Increase Their Overall Internet Use
Increased Transfer Speed 65%
More Security of Personal Information 40%
Increased Speed of Establishing aConnection
40%
Greater Reliability of Technology 33%
Easier to Navigate 32%
More Audio / Video 20%
Greater Breadth of Information /Entertainment
18%
Easier to Use 16%
Greater Breadth and Quality ofShopping
8%
Other 12%
Nothing Would Increase My InternetUsage
11%
Source: Wall Street Journal. 1999. A wide net, 6 December.
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Exhibit 9-6: Worldwide E-Commerce Projections
0
200
400
600
800
1,000
1,200
1997 1998 1999 2000 2001 2002 2003
($B
illio
n)
Source: International Data Corporation. 1998.
Worldwide Commerce on the Web
Total worldwide sales of products via the Web, excluding securities and brokerage transactions
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Table 9-5: Top Internet Service Providers in the United States
(December 1999)
Top Internet Service Providers in the United States (December 1999)
America Online 18.0 Million
EarthLink/MindSpring 3.0 Million
MSN 1.9 Million
AT&T Worldnet 1.6 Million
NetZero 1.1 Million
Prodigy 1.0 Million
WebTV 0.8 Million
@home 0.7 Million
Bell South 0.7 Million
Source: Jupiter Communications, December 1999
Source: Bloomberg
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Exhibit 9-7: Possible Internet Connection Methods
Source: Adapted from E-Business technology forecast (1999), published by PricewaterhouseCoopers’ Technology Centre, Menlo Park, CA.
CLIENTSERVER
Basic Rate ISDN
Basic Rate ISDN
Frame RelayFrame Relay
SMDSSMDS
ISDNISDN
Low-end Server
Low-end Server
Midrange Server
Midrange Server
MainframeMainframe
Wireless DataWireless Data
DSLDSL
CableModem
CableModem
Warehouse Robot
Warehouse Robot
PCPC
HandheldHandheld
KioskKiosk
T1, Fractional T1
T1, Fractional T1
T3,Fractional T3
T3,Fractional T3
Analog Modem
Analog Modem
SatelliteSatellite
ATM
INTERNET
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Exhibit 9-8: Relative Speed of Various Types of Internet
Connections
Telephone
ISDN
DSL
Cable 3 to 4 Megabits per second
1.5 Megabits per second
128 Kilobits per second
56 Kilobits per second
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Exhibit 9-9: Certain Applications More Dependent on Broadband
Video-on-Demand
Multiplayer Games
Software Distribution
Adult Content
Traditional Graphics
Enhanced Graphics
Streaming Audio
Streaming Video
IP Telephony
Free High Price
High
Low
Ability to charge for applications
Utility of broadband connection
Source: Jupiter Communications
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Supporting Slide 9-E: 26 Million Consumers to Be Added to
Broadband
1999 2000 2001 2002 2003
Existing dial-upsubscribers (atbeginning of year)
36.89 42.39 47.23 49.51 48.14
New to dial(throughout the year)
6.02 6.22 4.85 2.75 2.01
Graduates tobroadband(throughout the year)
1.61 2.57 3.79 5.29 4.88
Total dial-up at year-end (1+2-3)
41.29 46.04 48.29 46.98 45.27
Existing broadband (atbeginning of year)
0.75 2.67 5.91 11.25 19.26
New to broadband (atbeginning of year)
0.24 0.53 1.26 2.27 3.25
Total broadband atyear-end
2.60 5.77 10.97 18.80 27.39
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Table 9-6: How Users Access the Web Worldwide
1998 1999 2001 2002 2003
Source: IDC 1999.
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Supporting Slide 9-F: Point-Counterpoint - Attributes of Cable vs.
DSL
Attribute Cable DSC
Claimed Downstream Speeds: 36 Mbps 8 Mbps
Currently OfferedDownstream Speeds:
10 Mbps 1.5 Mbps
Currently OfferedUpstream Speeds:
2 Mbps 384 Kbps
Monthly Service Price: $40 (10 Kbps downstream) $39 – $80 (384 Kbps downstream)
$100 – $200 (1.5 Mbps downstream)
Fixed Installation Price: $75 – $175 $300 – $500
Point-Counterpoint Problem of shared connectivity.Limited amount of bandwidthavailable to the network. As moresubscribers use network, decreasedavailable bandwidth per user
Network security. Possibility of othernetwork users being able to accessyour files
Cable was the first to marketeconomical broadband access.Upcoming deregulation hearings mayslow cable growth
Current DSL services expensive toset up require significant technicalwork at residence
DSL can only be offered to homesless than 18K feet from the centraloffice. Difficult to market since nopattern to which houses are greaterthan 18K feet from central office
Future video on demand technologyexpected to require at least 7 Mbps.DSL data transfer capabilities maybecome dated
Attributes of Cable vs. DSL Service in the United States
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Supporting Slide 9-G: Point- Counterpoint: Which ISPs will win?
MSO/TelecommMSO/Telecomm
Will be able to provide consumers with faster connect times through either cable modems or DSL
One stop shopping for consumers - added to current cable or phone bill
Will be able to provide consumers with faster connect times through either cable modems or DSL
One stop shopping for consumers - added to current cable or phone bill
Standalone IndependentsStandalone Independents
Open system of ISP choice on either cable or telephone systems will help standalone independent ISPs to continue to grow
Other attributes, such as customer service, will be more important in consumer’s choice of ISPs
Open system of ISP choice on either cable or telephone systems will help standalone independent ISPs to continue to grow
Other attributes, such as customer service, will be more important in consumer’s choice of ISPs
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Exhibit 9-10A: Transformation of the Computer Industry
IBM DEC Sperry Univac
Wang
Sales and Distribution
Application Software
Operating System
Computer
Chips
THE OLD VERTICAL COMPUTER INDUSTRY — CIRCA 1980
Source: Grove, Andrew S. 1996. Only the paranoid survive. New York: Currency Doubleday.
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Exhibit 9-10B: Transformation of the Computer Industry
Source: Grove, Andrew S. 1996. Only the paranoid survive. New York: Currency Doubleday.
Sales and Distribution
Application Software
Operating System
Computer
Chips
Retail Stores Superstores DealersMail Order
Word Word Perfect Etc.
DOS and Windows OS/2 Mac UNIX
Compaq DellPackard
BellHewlett Packard
IBM Etc.
Intel Architecture Motorola RISCs
THE NEW HORIZONTAL COMPUTER INDUSTRY - CIRCA 1996
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Exhibit 9-10C: The Expanded Horizontal Computer Industry —
Circa 1999
Source: Gates, Bill. 1999. Business @ the speed of thought. New York: Warner Books.
THE NEW HORIZONTAL COMPUTER INDUSTRY - CIRCA 1996
Chips
Sales and Distribution
Databases
Financial Systems
Network Infrastructure
Network Integrators
Application Software
Operating Systems
Retail Stores Superstores Dealers Mail Order
IBM Microsoft Oracle Others
Baan JD Edwards SAP Others
Cisco 3 Com Lucent Others
Entex INS Vanstar Wang
Word Word Perfect Etc.
DOS and Windows OS/2 Mac Unix Linux
Computer Compaq Dell Packard BellHewlett Packard
Etc.
Intel Architecture Motorola AND Etc.
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Table 9-7: Changes In the Value of the New Economy
The 10 Biggest Market Value Losers
(Billions Lost)Coca Cola $52.3Bank of America 51.1Proctor and Gamble 48.6Ford Motor 27.9Gillette 24.2Xerox 23.8Unilever 17.1Allstate 14.9McDonald’s 14.2Emerson Electric 10.2
TOTAL MARKET LOSS $284.3
Note: Period between May 1, 1999 and March 9, 2000
The 10 Biggest Market Value Winners
(Billions Gained)Cisco $293.3Oracle 198.1Intel 192.5Nokia 161.2LM Ericsson 126.9Sun Microsystems 123.6Nortel Networks 120.8Microsoft 106.5Texas Instruments 106.3EMC 78.2
TOTAL MARKET GAIN $1,507.4
Source: Byrne, John A. and Debra Sparks. 2000. What’s an old-line CEO to do? Business Week, 27 March.
URL: http://businessweek.com/2000/00_13/b3674109.htm
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Exhibit 9-11: Overview of Basic Internet E-Business Architecture
Payment Gateway
Payment Gateway
Buyer Storefront System Back Office System
Web Commerce Server
Web Catalog
Enterprise Firewall
Inte
rnet
Bank
Enterprise Firewall
Seller
Order Processing Fulfillment System
Order Processing Fulfillment System
Accounting SystemAccounting System
Source: Adapted from E-Business technology forecast (1999), published by PricewaterhouseCoopers’ Technology Centre, Menlo Park, CA.
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Supporting Slide 9-H: Leading Web Services
ServerNumber of Sites(As of April 1999)
Percent of Sites Surveyed
Apache 2,832,119 56%
Microsoft-IIS 1,164,132 23%
AOL (Netscape) – Entrerprise 253,660 5%
Rapidsite 94,808 2%
WebSitePro 79,615 2%
thttpd 66,211 1%
Stronghold 64,491 1%
WebSTAR 53,985 1%
Zeus 51,969 1%
NCSA 40,823 1%
Source: Bloomberg
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Supporting Slide 9-I: Web Server Market Share
0
10
20
30
40
50
60
70
80
90
100
Aug-95 Nov-95 Feb-96 May-96 Aug-96 Nov-96 Feb-97 May-97 Aug-97 Nov-97 Feb-98 May-98 Aug-98 Nov-98
ApacheMicrosoftNetscapeOther
Evolution of the Web Server Market (%)
Note: As of November 1, 1998, the sample consisted of more than 3,500,000 public Web sitesSource: Adapted from Netcraft Web Server Survey, http://www.netcraft.com/survey
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Supporting Slide 9-J: Leading Web Servers by Enterprise Size
>$1 Billion
$100-999 Million
$50-99 Million
$10-49 Million
Overall
0% 20% 40% 60% 80% 100%
25.7 26.4
28.1
15
28.4
27.5
27.6
16.6
18.5
17.6
17.3
30.8
35.5
39.6
35.9
Netscape Microsoft Apache Other
Note: Based on survey of 53,000 Web sites owned by U.S. businesses with annual revenues of $10 million or moreSource: Adapted from Internet Server Survey, SiteMetrics Corp. August 1998
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Exhibit 9-12: Digital Nervous System
Procurement Finance / Accounting / Control Supply Chain Management / Human
Resource Management
Procurement Finance / Accounting / Control Supply Chain Management / Human
Resource Management
Consumer relationship management / Selling chain management /
Supply chain management
Consumer relationship management / Selling chain management /
Supply chain management
Source: Gates, Bill. 1999. Business @ the speed of thought. New York: Warner Books.
BusinessReflexes
BusinessReflexes
StrategicThinkingStrategicThinking
Digital Nervous System
Digital Nervous System
CustomerInteractionCustomerInteraction
Basic OperationBasic Operation
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Supporting Slide 9-K: Enterprise Resource Planning
Enterprise Resource PlanningEnterprise Resource Planning
Source: Adopted from e-business: Roadshow for Success; Dr. Ravi Ka? And Marcia ?
Purchasing Material Management
Purchasing Material Management
Warehousing and Inventory
Management
Warehousing and Inventory
Management
Finished Product Distribution
Finished Product Distribution
Forecasting and Planning
Forecasting and Planning
Accounting / FinanceAccounting / Finance
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Exhibit 9-13: Customer Relationship Management
WebWeb Tele-centerTele-center Direct SalesDirect Sales RetailerRetailer ResellerReseller DistributionDistribution
Direct ChannelsDirect Channels
Customers and Prospects
Customers and Prospects
Indirect ChannelsIndirect Channels
Customer RelationshipManagement
Customer RelationshipManagement
Source: New York Times. 2000. Know thy customer, 14 February.
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Supporting Slide 9-L: Supply Chain Management
Market DemandMarket Demand
Resource and Capacity Constraints
Resource and Capacity Constraints
Real-Time Scheduling
Real-Time Scheduling
Supply Chain ManagementSupply Chain Management
Source: Adopted from e-business: Roadshow for Success; Dr. Ravi Ka? And Marcia ?
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Exhibit 9-14: E-Procurement
?Select
ProductCreate
RequisitionPurchase
Order
Supplier Fulfillment
Electronic Purchasing
Ship ProductReceiving
Accounts Payable
Route to Recipient
Approval Cycle
Submit Order
Approved
Source: Adapted from E-Business: Roadmap for success (1999) by Ravi Kalakota and Marcia Robinson. Reading, MA: Addison-Wesley Publishing.
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Table 9-5
IDC Predicts 179 Million Americans Online by 2003
50
100
150
200
1999 2000 2001 2002 2003
CommerceNet/NielsenCyber Dialogue (Aggressive)Cyber Dialogue (Conservative)International Data Corp.Jupiter / NFO
U.S. Online Population Forecasts by Researcher
Population($Millions)
Source: Companies Listed