Electronic CommerceElectronic Commerce

"Any sufficiently advanced technology is indistinguishable from magic."

-Arthur C. Clarke

What is Electronic Commerce?

“Technology-mediated exchanges between parties (individuals or organizations) as well as the electronically based intra- and inter-organizational activities that facilitate such exchanges”

Rayport and Jaworski, 2001

In the beginning...

MAINFRAME

MAINFRAME

Dum

b T

erm

inal

s

Then came the PC...

Local Area Networks (LANs)

Why not connect branches around the country?

gateway

gateway

gateway

gateway

Seattle, WASeattle, WACollege College Park, MDPark, MD

New Haven, CTNew Haven, CT Albany, NYAlbany, NY

Why not link the world?

And so it came to be...

The “Internet”“Internet” a global network of networks connecting millions of users

networks connected via gateways

standard grammar (or protocol) for communicating with one another (TCP/IP)

common addressing system (URL)

most commonly used for email

URLs

Need to keep the computers straightEach assigned a unique IP address

Example : 151.118.43.18Four sets of octetsCan take values between 0 and 255

IP addresses stored as domain names for easy recallDomain Name Server maintains the mapping between IP address and domain name

The Internet: What does it The Internet: What does it look like?look like?The Internet: What does it The Internet: What does it look like?look like?

1985: NSF funded 5 supercomputer 5 supercomputer centerscenters around the country

Cornell Theory Center, Cornell UniversityNational Center for Supercomputing Applications (NCSA), University of Illinois, Urbana-ChampaignPittsburgh Supercomputing Center, University of PittsburghSan Diego Supercomputer Center, University of San DiegoJon von Neumann Center, Princeton University

The Original InternetThe Original InternetThe Original InternetThe Original Internet

Five centers linked by 56kbps56kbps lines

Unexpectedly large volumes of traffic

Not only used for research but also for email email and and file transfersfile transfers

1987:1987: NSF awarded Merit Networks Inc. (Ann Arbor, MI) contract to upgrade the NSFnet backbone

The Original Internet (contd.)The Original Internet (contd.)The Original Internet (contd.)The Original Internet (contd.)

Merit upgraded the lines to T-1 (1.544 Mbps)

8 more nodes added (making 13)

The purpose of NSFnet now was to interconnectinterconnect these regional networks

The Original Internet (contd.)The Original Internet (contd.)The Original Internet (contd.)The Original Internet (contd.)

1991:1991: The lines interconnecting networks was upgraded to T-3 (45 Mbps)Over 3500 regional networks3500 regional networks were interconnectedThe original 1983 concept of the Internet was that of interconnecting networks10 years later, “being on the Internet” meant being connected to the NSFnet backbone

The New Internet ArchitectureThe New Internet ArchitectureThe New Internet ArchitectureThe New Internet Architecture

April, 1995April, 1995: NSF shut down its NSFnet backbone

Radical new architecture consisting of four network access pointsnetwork access points (NAPs)

San Francisco (PacBell)

Chicago (Ameritech and Bellcore)

New York (Sprint)

Washington D.C. (Metropolitan Fiber Systems)

Today’s Internet

                                                                                                                                    

WWWhat in the WWWorld is the World Wide Web?

The World Wide Web (WWW)

The multimedia armmultimedia arm of the InternetWWW is an information system that uses

the internetuniform addressing schemes (URL)common grammar (HTTP protocols)hypertext (written in a language called HTML)web serversweb browsers

World Wide Web

www.travel.net.br

Browser client

URL

What is Electronic Commerce?

“Technology-mediated exchanges between parties (individuals or organizations) as well as the electronically based intra- and inter-organizational activities that facilitate such exchanges”

Rayport and Jaworski, 2001

Ripples

Business Originating From….

Sel

ling

to…

.

Business

Business Consumer

Consumer

B2B C2B

B2C C2CConsumers buy thousands of Harry Potter books from Amazon

Publisher orders paper supplies from paper companies

Amazon orders extra copies from publisher

Consumers resell Harry Potter books on eBay

Potter fans band together for bulk purchase from Amazon