coltTEltTS

1. E-COMMERCE: GONVERGENCE OFTECHNOLOGIES .............1

1.1 Electronics Commerce (e-Commerce or EC) ...................... 1

1.2 Definition of Electronic Commerce ..................2

1.3 Commerce and Virtual Enterprises ..................2
'1.4 Electronics. ................ 3
1.5 Electronic Communication ............. ..................3
1.6 The Convergence of Computing with Communications .........................4
1.7 Technology Convergence and GlobalCommerce ..................;...............6
1.8 Advantages of Electronic Commerce ..............7
1.9 Applications of Electronic Commerce. .............7
1.10 TheTechnologies of Electronic Commerce .........................7
1.11 Digitization of the Network................ ............... I
'1.12 The lnformation lndustry and e-Commerce ........... ............. 8
1.13 The Form-Based lnformation lndustries of the Past ........... 9
1.14 The Global lnlormation lnfrastructure (Gll): lnternet....... ..................... 11
1.15 lnternetTechnology .....................11
1.16 Components of lnternetTechnology. .............. 13
1.16.1 The lnternet Network ...................... 13
1.16.2 \rVWW-WorldWideWeb ..................14
1.16.3 Electronic Mail 14
1.16.4 FTP........... ..................14
1.16.5 lnternet Relay Chat (lRC) .......... ..... 15
1.16.6 WebOhat... ..................15
1.16.7 News Groups................. ................. 15
1.16.8 Usenet ...... 15
1.16.9 Telnet ........ 15
1.17 Principles Of Founding lnternet Based e-commerce .......... 16
.17.1 Pervasive lnternet Access and Mobile lnternet
1 ...................17
1.18 lntranets ........-........17
1.19 TheTechnologies of Electronic Commerce .....17
1.19.1 Electronic Data lnterchange (EDl)..
1.19.2 BarOodes ...................18
1.19.3 Electronic Mail ........... ....................18
1.19.4 lnternet Market ............ 18
1.19.5 Product Data Exchange .............. ...................... 18
1.19.6 Electronic Forms .........18
1.2O Differences Between Electronic and Other Forms of Commerce ...;....................... 19
1.21 DeterminingTechnologicalFeasibility ............ 19
I
 1.22 Ecommerce Marketing ................2A
1.22.1 Be a Resource, Not a Store ...........2O
1.22.2 Your Current Customers ................. 20
1.22.3 Search Engines and Directories.............. ..........21
1.22.4 Discussion Forums, Chat and Newsgroups ......21
1.22.5 DirectOpt-ln E-mait......... ...............21
1.22.6 Banner Advertising ......21
1.22.7 lnternet News Releases ............ .....n
1.22.8 Co-Branding Site Content & Features ...............29
1.22.9 Affiliate Programs... .....29
1.22j0 Reciprocal Links.......... ................... 23
1.23 Breakthroughs in ComputingTechnology............. .............29
1.24 Technology
Breakthroughs in Communications ................ 25
1 .25 The Sociology of Convergence........ ..............25
1.26 ............
The lmpact of Convergence ................... .............. 26
1.27 lndustry
A Paradigm Shift:The New lnformation ..............27
1.28 Commerce
The Future of Electronic ..............29
1.29 Methods of E-commerce............. ..................29

ELECTRONICS AND COMMUNICATIONS 35

2j Electronics. .............. 35
2.2 Electronic Components................. ................. 35
2.3 Computers :The lnformation Processor............. ..............3g
2.4 Types of Computers: Digital and Analog. ......42
2.5 Range ot Computer Ability....... ......................42
2.6 Uses of Computers ..................... 49
2.7 DigitalTechnology .......... .............43
2.8 Processing Digitallnformation .......................M
2.9 Digital Logic .......... ...................... M
2.10 Communications............
2.11 Data Communications ................ 49
2.12 DataTransmission ......... .............50
2.13 Types of Signals in Communication......... ......51
2j4 Characteristics of ElectricalWaves ...............52
2.15 DataTransmission Quality Factors ................54
2.16 Transmission Degradation................. ............. 56
2.17 Wireless Communication .............. .................57
2.18 Principles of Wireless Communications........... .................57
2.19 Modes of Wireless Communication ............ ......................59
2.20 Networks .................59
2.21 Future Developments in Computing............. .....................60
2.22 Mobile Processors ......................61

IN FORMATION TECHNOLOGY ...

3.1 Fundamentals of lnformation Systems...............;... ,......... 63
3.2 Knowledge.......... .............66
The Relationship Between lnformation and
3,3 lnformation Age............ ..............66
3.4 What are lnformationSystems ...........,..........67
3.5 Who Processes lnformation? .......'.' ...'.)....'......'..""""""' 67
3.6 lnformation lndustry .'....'."""""" 68
g.7 Transformation to DigitalTechnology ..'......".' 68
3.8 The lnefficient lnformation lndustry ........'.."" 69
3.9 lnformation Functions ....r.....i...rr... """"""""' 70
3.10 The Functionally Based Companies of the Future """"""72
3.11 The lnformation Transport lndustry ....."""""' 73
g.12 WhereToday's Computing lndustryWillBe .'.'.'..... """""'74
3.'13 Future of lnformation Presentation .......'.'.... """"""""""'74
g.14 Electronic Publishing """""""""77
GLOBALINTERNET """'i"""""' """""'79
4.1 World Wide Web :The'simplified Access to the lnternet "......."'." ""'79
4.2 History of Web Growth """""""" 80
4.g Working of lnternetWeb '.....'.'..'..
4.4 Web Browsers ............... """"""' 84
4.5 Surfing the Net....... """"""""""' 86
4.6 Searching theWeb...... """""""" 86
4.7 Search Engine """"'87
4.8 Categoriesof Search Engines """""""""""' 87
4.8.1 Web Crawlers' ..............' """"""""' 88
4.8.2 Subject Directories. ..........'..;..." ""' 88
4.8.3 lndexes...... .""""""""' 88
4.8.4 Generalsearch """""' 94
4.8.5 Example ol Multiple Serching: Cable Cars to the Stars """' 95
4.g Searching Criterion """"""""""' 95
4.1O Advanced SearchTechniques.'....'. """""""" 96
4.10.1 Phrase Searching """" 96
4.10.2 Boolean Searching """97
4.10.3 Capital Sensitivity """' 99
4.10.4 Phrase Searching """ 100
4.10.5 Truncation .................. 100
4.10.6 Date Capability..'.'..'..... """""""" 100
4.10.7 Restricting searches to specific Parts of the Document.....................' 100
4.10.8 Restricting searches to specific Areas of the web ........... 100
4.10.9 Restricting Searches to Specific Media """"" 100
4.10.10 Metasearches ..'.'....'.'.. """""""" 101
4.11 SearchingTips.............. """""" 101
4.12 Downloading """"" 102
4.13 HypertextTiansfer Protocol (HTTP).'.
4.14 The World Wide Web & Hypertext """""""" 104
4.15 What is a Url? """" 104
4.15.1 URL Syntax """""""' 105
4.16 WEB Servers................ .......................,....... 106
106
4.16.1 ATypicalTransactionbetweenwebserversandclients...................'..
4.16.2 The Main Webserver: httpd (The http daemon) """"""""""""""""""' 107
4.16.3 ServerHardware.....'..... """""""" 107
4.16.4 ServerSoftware ...'......'.' """"""" 108
4.17 WebGu ...............111
4.18 Portal and Portal Space ............ 111
4.19 Web Browsers ............... ...........112
4.2O Browser..
Working of ................. 113
4.20.1 Microsoft lnternet Explorer version
5.0 ........... 119
4.2'l Explorer...
Working with lnternet .................. 11S
4.21.1 Basic Setup .............. 115
4.21.2 Safety in Browsing the Web ......... 115
4.21-3 Learning howto Browsetheweb Fasterand Easier .......... 115
4.22 UsingYourWeb Browser ........... 115
4.23 lnternet ExplorerWeb browser... .................. 117
4.23.1 What to do if a Web page isn't working ........... 118
4.23.2 Setting up an lnternet connection using lnternet Connection Wizard .... 118
4.23.3 Findingthe lnformationYouWant.......... .......... 119
4.23.4 BrowserTips ................ ................ 119
4.23.5 The Cache andToolbar .................124
4.23.6 Stiaring Bookmarks and Favorites ................ .....................124
4.23.7 To EnterWeb lnformation more Easily ............125
4.23.8 Making Pages Available for Offline Viewing ....125
4.24 Netscape (Netscape communications or Netscape Navigator) .........127
4.25 Navigating the world wide web with Netscape communicator ......... ................... 12g
4.25.1 Anatomy of Netscape ................... 129
4.25.2 TheToolbars................. ................ 129
4.26 The Access lndicator..... ........... 131
4.26.1 Some BrowserTricks............... ..... 191
4.26.2 Who Controls the lnternet? ............... .............. 139
4.26.3 Who Created the lnternet? ............... ............... 133
4.26.4 Pure-PlayWeb Application Server .................. 194
4.26.5 Develop-and-Deploy Servers ........1U
4.26.6 Application Servers from ClienUserverVendors ................................... 135
4.27 Browsing vs. Building ............... 196
4.28 ISP Web hosting ....137
GENERATING E.COMMERCE 149
5.1 Commerce ............. 14g
5.2 Commerce in History ................ 149
5.3 The Early Modern Period .......... 149
5.4 The Effects of lndustrialization on Commerce.............. .................... 1S0
5.5 The Period of the World Wars.......... ............. 151
5.6 The Later20th Century ............. 151
5.7 FreeTlade ..............151
5.7.1 EarlyTrade Doctrine ..................... 152
5.7.2 ModernTradeTheory ....................1S2
5.7.3 Arguments for Protection ................ ................ 1Sg
5.7.4 Recent Developments ........,....... ..................... 159
5.8 ForeignTrade ................ ............ 1S4
5.8.1 Emergenceof Modern ForeignTrade................. ................. 154
5.8.2 Advantages of Trade...... ............... 1il
 5.8.3 Government Restrictions..'.........'..........'..,....'...' """""""" 155
5.8.4 Tarifti......... ................155
5.8.5 Nontariff BarrierstoTrade..'..' """' 155
5.8.6 2Oth CenturyTrends....'... """"""" 156
5.8.7 Trade Negotiations ""' 156
5.8.8 Trading Cbmmunities and Customs.......'...... "' 156
5.9 U.S.Trade """';""""""""""""' 156
5.10 Business ............... 157
5.10.1 Types of Businesses....'..'....... ""'157
5.11 Manufacturing .............. """"""' 157
5.12 Merchandisers............... """""' 158
5.13 Service Enterprises """"""""" 158
5.13.1 Forms of Business Ownership ""' 158
5.13.2 Sole Proprietorship "" 159
5.13.3 PartnershiP
5.13.4 Corporation """""""" 159
5.13.5 Joint Ventures and Syndicates ""' 160
5.13.6 Syndicates """""""" 160
5.13.7 Mercantilism """"""" 160
5.13.8 Retailing """""""""" 161
5.14 Retailing Strategy """"""""""' 161

5.15 Kinds of Retailers """"'"""""" 162

5.16 Department Stores """""""""' 163
5.16.1 History of Growth of Department Stores """"' 163
5.16.2 Chain Stores '.'.'.......".. """""""" 165
5.16.3 Suburlcan Branches "' 165
5.16.4 Franchise... ................165
5.17 Business Operations """""""" 166
5.18 Business in a Free Market Economy.... """' 167
5.19 Business Activities : currentTrends """i"""""""""""" 167
5.20 E-Business """""" 168
5.20.1 lntra Business.......'.".... """""""' 168
5.20.2 Business-to-Business (BTB or B2B) """""' "" 168
5.20.3 Business-to-Consumer(BTOorB2C) """"" "' 168
5.20.4 GovernmenVPublic-Consumer """"" """"""" 169
5.21 Staying in E-Business .....-........'. """"""""' 169
5.22 The lnternet and e-Business ...'...'.. """"""' 170
5.2g Electronic Commerce """""""' 170
5.29.1 Who is Using....'.'.' ""170
5.29.2 SecuritY Concerns ""' 171

5.23.3 How itWorks .'.'.....""... """""""" 171

5.29.4 The Future of Electronic Commerce """""""' 171

5.24 An lntegrative View Of Electronic Commerce """""""" """""""""' 172
5.24.1 lmplications """""""' 173
5.25 Levels of Web Presence """""' 173
5.26 Exactness of the Contents ......"""" """'""' 174
5.27 E-comWeb Presence Models """"""""""'174
5.28 Basic Steps for Conduting Business on Line """"""""' 175
v
 q.28.1 Domain Name Registration ........... 126
?.28.2 Obtaining a Digital Certificate ......17g
5.28.3 Finding a Provider of Online Transactions ....... 1Tg
5.28.4 Web Hosting .............. 179
5.28.5 Server Hosting .......... 180
5.28.6 Web Store Design ..... 1BO
5.28.7 Payment Solutions .... 183
q.28.8 Shopping Cart Software ............... ................... 184
5.28.9 Getting an lnternet Merchant Bank Account................ ...... 184
5.28.10 Traffic Coverage ........ 184
5.29 The Seven Deadly Sins of E-Commerce ................ ........ 1g5
5.30 E-Commerce Software Example ................. 1g6
5.30.1 Getting Started ..........1A7
5.30.2 Adding Value ......... ....187
5.30.3 Transactions .............. 1gg
5.30.4 Don't Mess with Taxes ................. .lgg
5.30.5 Shaping Up and Shipping Out ............ ............. 189
5.30.6 Backto Ramforless.com............ ..................... 190
!.30.7 Selecting E-commerce package ..................... 190
5.30.8 Buy, Lease, or Build? ...................
1g.l
5.30.9 ChartYour Course .....1g2
5.30.10 Ramforless.com: Buildin'lt So They'll Come ..................... 193
Cold Fusion : The Basic Software for e-Comerce Applications ............................ 193
5.31.1 BuildingYour Customer Base.......... ................ 194
5.31.2 Requirements Document ................. ................ 194
5.31.3 OrderandTransaction processing. .................. 195
5.31.4 Attracting Customers ................... 195
5.31.5 Fulfillment and Customer Service ................... 195
5.31.6 Software and Hosting .............-.... 195
5.31 .7 Use Those Log Files ............:...... ...................: 195
5.31.8 Cost-EffectiveAdvertising............... ............... 196
5.31.9 Everything
Keeping Track of ......... 196
5.31.10 Staying in E-Business................. ....................197
5.31.11 Play by the "Business Rules. Document ........ 1gg
5.31.12 The Many Ways to Skin a Cat ............ ............ 198
5.32 Add Context-Sensitive Help to your lE Applications ....... 199
5.33 Prepare For Growth ln E-Commerce Database Design ..................... ZO2
5.33.1 Design a usefulWeb-Enabled Database ......... ZO2
5.33.2 Deploy Anytime ......... 203
5.33.3 Other Database Design lssues .... 203
5.33.4 SupplyChain Management .....r...i...!..... ..........n4
5.33.5 Security .....................2O4
5.33.6 Availability .................204
5.33.7 Volume Growth .......... 205
5.33.8 Usage GroMh .,............................ 205
5.34 Guidelines for Universal Access ................. 206
5.34.1 TestingYourWeb Site............ .......j.!.!....... .......n7
5'34.2 web Accessibility lnitiative (wAl) Guidetines for universal
 Web
Access to ................... ..........208
5.34.3 Principles of UniversalDesign ""' 208
5.35 GeneralAgreement onTariffs andTrade (GATT)' """""" 209
5.36 WorldTrade Organization (VWO) """"""""" 210
5.g7 Writing Softwaies/Programs for Business Applications """""""""" 210
5.37.1 Traditional Business Applications """""""""" 210
5.97.2 lntranet Business Applications "" 213
5.37.3 Top Tier:The Web Browser as a User lnterface """"""""' 213
5.g7 .4 Middle Tier:The Web Server and Business Logic """"""" 216
5.37.5 BottomTier:The Database Server """""""""217
5.35.6 lnternationalization and Platform lndependence """""""""""""""""' 218
E-COMMERCE : SALES AND MARKETING """""2O
6.1 Competition """"""2O
6.2 Perfect Competition """""""""22O
6.3 Workable Competition """""""'22O
6.4 Marketing, """""""21
6.5 Tailoring ihe Product """"""""' nl
6.6 Pricingihe Product """""""""'?21
6.7 Prom&ing the Product """""""22
6.8 Distributingthe Product """"""22
6.9 Services and Marketing....'...'..... """"""""'223
6.10 Marketing Research """""""""224
6.1 1 Forces Affecting Modern Marketing "' """"" 24
6.12 Specialized Mait<eting Developments """""""" """"""' 225
6.13 The Marketing Profesiion......'.'...'."' """""'25
6.14 Marketing and Consumers .........."' """""""226
6.15 Global Markets: Definition and Characteristics """""""227
6.16 New Forms of Organizationalstructure """"""' """"""'29
6.17 Telemarketing................. """"'i"""""""""" 230

6.18 e-Selling ";"""""""" """""""'231

6.19 Ecommerce Marketing """""""232
6.20 Create your own Onliie Storef ront "' """""" 2U
6.21 e-Marketing : Web Business Model: Product Sales """"' """"""""'234
6.22 Designing Site Fot Online Store """"' """"' 239
6.23 Xeepingirack of Everything ..""""' """"""'244
6.24 Cost-Effective Advertising ...'."""" """"""'245
6.25 Auctions Based Selling.....'.. ""'246
6.26 Setting Up Shop in Cyberspace"""""""' ""249
6.27 Selling on Line """'251
6t.28 Shopiing Cart Software.'...'.'..""" """""""' 253
O.Zg Selling pioOucts trom a Web Site Storefront """""""' "' 265
6.30 Cyber Cash Cash Register """"1""""" """'268
6.92 Affiliate ftf"rf,"ting , bimmision Junction's Solution..".. ...'."""""""'n0
273
7. E-COMMERCE : VIRTUAL CORPORATIONS """"'
7.1 in" C*."ptof VirtualOorporation """""""273
7.2 VAN Service Providers """"""'273
7.3 VANs and the lnternet """""""274
ut
 7.4 VirtualPrivate Networks ...........275
7.5 lntranets and Virtual private Networks (VpNs)
..............276
7.6 Benefits of lSp-Based private Networks
.....276
7.7 TraditionalWAN NetworkArchitecture
..........277
7.8 Encryption-Based VpNs
...........277
7.9 Private Networking Using Frame-Relay pVCs..........
......27g
7.1O lntranet
7.11 i;;;;;i;;l;;;;;i
Difference i;
""""'.'-.'27s

i13 3:1F3,:,1X,U'*::::::::;I:::::::: : :: :: : jii

7.14 lntranet and Portals
..................2g4
7j5 Web Personalization ................. 285
7.16 Dot Coms path to profitability .....................286
7.17 Start an E-company .................287
7.18 Dot-com DesignTips
................289
7.19 Risks in Dot-Com.... ..................29O
7.2O Dot-Coms:What Have We Learned? .

8. E-COMMERCE :WEB S|TE AND E-ADVERTTSEMENT

...........298
8.1 Advertising ............298
8.1.1 Media......... ................299
8.1.2 Direct Advertising. .....299
8.1.3 Reaserch ................... 300
8.'l .4 Techniques of persuasion................. ............... 301
8.'1.5 Structure of the lndustry .............. ................... 302
8.1.6 Economic and Social Effects........ ..................303
8:1.7 Regulation ................. 303
8.2 History of Advertising Efforts ... n4
83 Web Page : Building a site ......... .................30s
8.4 About Creating a Web page .......... ......;........ 307
8.4.1 Create a Web page ........... ............ 3Og
8'4-2 create a web page orframes page with the web page wi2ard............ 3og
8.5 Create ...................rrr
g.6 savea
s.7
8 8
conver
How to get started program
12-step
:':trii"lt"",;;;;.:.:.....::......::....::.3]l
Advertisement and-A
.....312
8.9 ............
the need of a Web site ........312
10
I 11 Marketing and promotion.............. ............... A12
9 Advertising ontnrernet ............. g13
8.12 Website Costs .........
8.13 Typical otfer from some WEb site Design Firm :
Office
The WebCommerce Back ................. g17
8.14 E-mail
Direct Opt-ln .................. 318
8.15 BannerAdvertising ...................319
8.16 Advertisement for Real Estate : second Highest popularweb cra2e................. 320
8.17 lncreasing circulation of ezine ..................... 321
8.18 Web Site Maintenance................. ................322
8.19 The Seven Negative Aspects of E-Commerce .............. .................... g24
 8.2O Choosing aWebhosting Company ...............326
9. E-COMMERCE: E-BANK|NG .........
.....3g4
9'1 Banking ............... a34
9.2 Early Banking ................ ...........334
9.3 CommercialBanking .................335
9.4 CommercialBankingToday............. ............. 336
9.5 Thrift lnstitutions........... ............ 3g7
9.6 European Banking .................... 33g
9.7 Banking in Britain..... .................338
9.8 Banking in Developing Countries ................. 339
9.9 Role of Central Banking ............ 340
9.10 lnternationalBanking ................ 341
9.11 European Banking ....................U2
9j2 American Banking Before World War - | ....... U2
9.13 American Banking AfterWorld War - | .......... g43
9j4 Current Practices in Banking ....Ug
9.15 Finance ...............34g
9.16 Credit ...............g44
9.17 GlobalFinance Profiles....... ......U7
9.18 Fortune e-50 World's First 50 e-Commerce Companies ............
:
...... 351
9.19 Types Of Electronic Payment Systems .......353
9.20 Electronic PaymentTechnologies ................354
9.21 Electronics FundTransfer............... ............. 355
9.22 lntroduction to Electronic Payment Mechanisms ...........356
9.23 lnternet Bill Presentation and Payment (lBpp) ..............35g
9.24 NSE MarketTrading System ....363
9.25 CreditCard........... ..................... 38t
9.26 Accepting Credit Cards ............. 367
9.27 Wireless Credit Cards:How Soon and How pervasive? .................... mg
9.28 Smart Card Overview .............. ......,............. 370
9.29 lntroduction to Smart Cards in Wireless Communications .......... ......g71
9.30 Discover Olfers Online'Virtual Credit Card' ......... .......... g77
9.31 Smart Card .......... .....................37g
9.32 What is a DigitalSignature? .....381
9.33 Use your Debit Card with Caution ................ g84
9.34 Online Credit CardTransaction Processing ........... .........3g9
9.35 Lenders UseYour Credit Score .................... 391
9.36 Loan Criteria Also Top Secret ... gg2
9.37 lmpacts and Effects of Digital Money .........394
9.38 Cybercash Service : US Dollars Payments ....................404
9.39 Authorizenet Service : US Dollars Payments ................. rc4
9.40 Merchant Accounts.... ............... 405
9.41 Worldpay Multi-Currency Payments (with NatWest) for UK based Merchants ..... 4Og
9.42 lnternetSecure GuaranteesYour Merchant Status......... .................... 4Og
9.43 E-Gold Payments... ...................410
9.44 e-Pay it Online's Online Bill Payment Portal. ..................410
9.45 eComm PRO Shopping Cart .....41O
 9.46 PDG Software................ ........... 412
9 47 Wired-2-Shop ................ ............412
9.48 Quickcommerce/E-commerce Exchange: Merchant Account program .............. 413
9.49 IBM Net.Commerce:Taking the Lead
9 !0
Cash Re9ister...............
............414
9.51 Stock Exchange ............ ...........414
9.52 lnternational Exchanges ...........417
9.53 History of U.S. Stock Exchanges........... ..... 418
9.54 Regulation of Exchanges ................. ............ 418
9.55 Direcent Developments................ ................42O
9.56 lnvestment Banking ..................420
9.57 Underwriting ...........4n
9.58 Other Services............... ........... 421
9.59 OASIS :The LargestWeb Commerce Arrangement......... .................4p.
10. E-COMMERCE : ELECTRONTC SERVTCES DELtVERy. .................:. ..........42g
10.1 Electronic Services Delivery .... 42g
10.2 Purpose ...............42g
10.3 Definition ...............424
1O.4 Drivers ...............424
10.5 Technologies for ESD ...............424
10 6 Single-Organisation ESD ........... ..................425
10.7 Business Models for Single-Organisation ESD ........... ... 42g
10 8 lssues in Single-Organisation ESD ........... .....................42g
10.9 The lnadequacy of Singte-Organisation ESD ........... ...... 430
10.10 Multi-Organisation ESD ........... ....................431
10.1 1 Architecture for Multi-Organisation ESD ...........
.............. 4gz
10.12 Challenges in Multi-Organisation ESD........... .................4g2
10.13 Conclusions ...........433
11. E-coMMERCE : wirelessTechnotolgy to Enable Mobile e-Business ...........:....... .....4g
11.1 Mobile Commerce ..................... 4U
11.2 Challenges of e-commerce ............. .............434
11.3 Global Mobile e-Commerce................. ......... ztgs
11.4 European M-Commerce Seen at Euro 3g Billion in 2004 ................... 436
11.5 Secure Mobile Commerce. ........ 1136
11.6 Secured Payments through Mobile ..............437
11.7 First Mobile Commerce Service ..................4g7
11.8 Wireless Business .................... 43g
11.9 OEM Portal ............ MO
11.10 WAP Applications ..................... 44O
11.11 Platforms for WAP Applications ...................444
1'1.12 MobileforMobileWorkforce .....445
11.13 lnformation Technology and Mobile wAp enabled relephones ........... 44s
1'l.14 Wireless Devices ... 446
11.15 Mobile Banking via WAP ........... 450
11.16 Wireless Portal ......... ................450
11.17 Multi-party Communication............. ............. 452
 """ 45s
12. E-COMMERCE:WEB PUBL|SH|NG """"""""
12.1 Electronic Publishing - Definition """"""""' 455

12.2 Electronic Publishin! - A Business Process Model """' 456

12.g Electronic Publishini - Alternative Business Models ""' 457

12.4 Electronic Publishini - A Maturation Path Model """""' 457

12.5 Web Publishing'........'.'.' """""' 461

12.6 Document tntethange Standards """""""' 463
12.7 Components of WEEi-Publishing """"""""" 465
12.8 Document Management '.....'...'.""" """"""' 465
12.g Web Documents ."........ """""" 465
li.lO Component Software """""""" 466
12.11 WhyWeb Publishing? """""""' 466
12.12 Web Page Design Clonsiderations"""""""' """""""""" 466
12.19 YourWeb Page's Layout """""' 472
ti.tq lngredients oiw"u Site Design """""""""'474
12.15 Enhance Your Site Design foi Better Business """"""" 482
12.16 Other Design Tips .....'... """""" 496
"' 498
12.17 Design PrinciPles
12.18 Tips on Graphics Design """"" 502'

12.19 Authoring:Tools for CrJating and Changing Web Pages """""""""" 503
508
12.20 Non-Standard New Standards "'
12.21 Style Sheets '."............. """""" 508

12.22 MicrosoftWeb iublishing Wizard Overview """""""""' 508

12.2g How to Publish and Publicis9 """""""" """ 513

12.24 Where to host your Web Site """""" """""' 516

12.25 Web Site Location """""""""" 517

12.26 Finding a Home forYour Site """""" """""' 519

12.27 HTTP Server Requirement"""""""" """""'522

12.28 Microsoft's WEB Server '.."""""""' """"""' 523
12.29 SeruertnternetConnectionSpeed """""""'524
12.90 MaintenanceandUpdating "i"""'""" """""525
12.91 Your Presence on lnternet creating a Home Page ........" """"""""' 528
12.32 Web Com's Web Authoring Service """"""' 531
12.33 Attracting Visiters """"""""""' 531
13. MULTIMEDIA AND APPL|CAT|ONS......."" """""" sl6
13.1 What is Multimedia? """"""""' 536
1g.2 Transition to Multimedia """""""" """""""' 537
13.3 GeneralMultimedia Developments """""""" """"""""' 537
13.4 ls Multimedi" o"V U,tiness Modesty? """"""' """"" 538
13.5 Uses of Multimedia
" """"""""" 539
13.6 Multimedia Content Control """""""';"' """ 539

1g.7 lnteractive Communications """""' """"""' 539

13.8 MultimediaOommunications """"" """"""' 540
13.9 lnterface Devices..."' """""""" 541
13.10 Development and Uses """"""'il2
13.11 StreamingTechnology """""""' 543

)(I
 14. ELECTRONTCCOMMERCEANDSECURTTY ........s7
14.1 Electronic Commerce and Security ............. il7
14'2 Privacy ...............g7
14.3 lnformation privacy....... ............549
14.4 A Common Misuse of theTerm ,privacy' ..... 54g
14.5 Data Surveillance.......... ............ 5SO
14.6 Human ldentilication ................. S51
14.7 Authentication............... ............ 552
14.8 Anonymity, ldentification and pseudonymity .................553
14.9 MessageTransmissionSecurity
14.10 Cryptogr:aphy ................ ............556
14.11 lnternet Security .... 5@
14.12 Security System of lntexnet.. ....561
14.13 Overview Of lnternet Security .....................561
14.14 Security for lnternetwork Connections ............ 567
14.1s Usins Secure rnternet.sites rorTransactions ...... .::..:...:.:.::::...:::..:...................... soa
14.16 Protecting Your ldentity over rhe lnternet .... 56g
14.17 lnternet Security : Other Aspects ................ 570
14.18 Security Risks in eBusiness ....575
14.19 Security-Related problems .............. ............577
14.19.1 Security lncidents on the lnternet ...................5TT
14.20 Secure ElectronicTransaction .....................57g
14.21 Secure ElectronicTransactions (SET) ......... ................... 578
'14.21.1 Who needs SET? .........
................529
14.21.2 SET: Merits and Demerits ............... ..............58O
14.21.3 Adoption of SET by lnformation and e-commerce lndustry .................. 581
14.2't.4 The Conduct of a payment Transaction................. ............. 583
14.21.5 lnfrastructure for Digital Signatures. ................ 5gg
14.21.6 lssues in public Key Cryptography ......... ........ SB4
14.21.2 The Need For a Comprehensive Security Regime ............. 5gg
14.21.8 Secured Socket Layer.......... ........ 588.
14.2'1.1 The Need For a Comprehensive Security Regime....... ... S88
14.21.2 Secured Socket Layer.......... ........ 588
14.22 Security Blanket for Credit Cards ............... 5g9
14.23 Secured Credit Cards : Mondex System ..... 590
14.24 Use your Debit Card with Caution
14.25 Transfering funds from your Customer Account to Merchant Account ................. 5g2
14.25 Microsoft Wallet Security for Online Shopping.... ............ 594
14.26 FindingTrustworthy e-Commerce Companies ................ ................... 59S
14.27 lntroduction to Firewalls ........... 596
14.28 Security of Gil ......... .................600
ls. EC AND LEGAL, SOCTAL AND OTHER ISSUES.. .................... 6(}2
15.1 Consumer and Shape of the Market place ..................... 602
15.1 .1 Financial lssues ........ 602
15.1.2 Electronic payment Systems ......... 603
15.2 Legal lssues ..........604
15.3 Privacy ...............608
 15.4 Elegibility of Contents ............... 6'1 1
15.5 Technical Standards for Global e-Commerce ................ .................... 612
15.6 Copyright lssues ....614
15.7 LegalAspects of E-Commerce......... ........... 614
15.8 lntellectualProperty .................616
15.9 Copyright ...............618

16. SoFTWARE FOR E-COMMERCE...... ._...................623

16.1 Web Application lnf rastructure .......... .......... 623
16.2 The Need for Structure: Roles and Development Models ..................624
16.3 Seruer-side Application Building Blocks .....627
16.4 Application Services Framework .................631
16.5 TheWebSphere Application ServerWorkbench ............. ffi6
16.6 lnteractivity Tools.......... ............ 639
16.7 Visual Basic Script : Overview ....................652
16.8 A Simple VBScript Page.......... ....................655
16.9 OtherWays to Attach Code to Events .........656
16.10 Java ...............656

rlli
16.15
*l:["ilji!],1,="#*J*r,,,:::::::::::::::::::::::::::::::::::::::::::::::::::::::::.'.'.ilgi
6.0
Microsoft Visual J++ ........... 663
16.16 Java Script ............663
16.17 lntel's Just-ln-Time (JlT) Compiler .............. ................... 663
16.18 JAVA and Websites .................. 665
16.19 Programming in JAVA ...............666
16.20 Command Line Arguments ............. ............. 667
16.21 JAVA Capabilities .......... ...........678
16.22 Java Tools .............:...................678
16.23 JavaScript .............679
16.24 PushTechnology............ ...........681
16.25 Push Technology and Various Products ....... 688
16.26 Features of Different Push Technology Products ............... ............... 689
16.26 How is content delivered? ........ 689
16.27 Client Operating Systems ......... 689
16.29 Push for Executive Communication ............ ................... 691
Appendix .......69e7q2

xIlI
 E-COMMERCE : CONVERGENCE OF TECHNOLOGIES / 1

Cbnpb, I
C-COMMERCE:
C onv erg enc e of Technolo gies

l.l Electronics Commerce (e.Commerce or EC)

Simply defined EC is the activity of carrying out business activities through the lnternet. This could
include, but not be limited to, examining product and merchandise descriptions and catalogs, ordering
and paying for products or merchandise, banking, filing applications and forms, Email communications
relating to business, advertising and promotion, research on subjects, and software distribution. e-
Commerce is being embraced and adopted by businesses, educational institutions, and governments
at a very high rate because it reduces the cost of conducting business in many ways.
While there is no one correct definition of e-commerce, it is generally described as a method of
buying and selling products and services through electronic means of communications. The main
methods of e-commerce remain as the lnternet and the World Wide Web, but use of email, fax, and
telephone orders are also prevalent. e-commerce also encompasses all ranges of transactions:
business-to-business, business-to-consumer, and consumer-to-busi ness.
Electronic commerce is an integrative concept, designed to draw together a wide range of business
support services, including inter-organisational e-mail; directories; trading support.systems for
commodities, products, customised products and custom-built goods and services; ordering and
logistic support systems; settlement support systems; and management information and statistical
reporting systems.
EC is intended for people who need a sense of the boundaries and content of EC, or who need help
in explaining EC to others.
Some people use the more restrictive terms 'elec.tronic tradinj and'electronic markets', and others
use broader terms such as'electronic business'. Some people also restrict the scope of EC to
procurement; but it's more usefully conceived much more broadly, to include any kind of business-
related transaction conducted with the assistance ef efectronic tools. Yep, even the telephone and
fax.
A startup EC bookstore with the name "Amazon.com" makes waves with an enormously successful
lnternet portal that raises $54 million. Proclamations are made about 9 billion online transactions,
totaling $50 billion by the year 2OOO.
So what is it? Electronic commerce, or e-commerce, refers to all transactions that take place
electronically; for the purposes of this article, it is def ined as goods and services that are bought and
sold online.
Web sites that let customers make purchases online are the bread and butter of e-commerce.
Amazon.com, mentioned above, is a perfect example of successful electronic commerce. A customer
 2 / ELECTRONIC COMMERCE
visiting Amazon'com can browse and purchase
any of 2.5 million books. such retail transactions
are
2000. r;faci ii i; ;.ti,*t"o that 50% of al software
:ll?"li::? :f""":T::il,l",l^ol,ll:year
and 25o/o of all CD music sales will tafte place online by 2000. sares

By the term electronicsin context of electronic

commerce, we always mean promotion of trade
business by elcronics means of telecommunication and
, either wired or wireless type.
ln this intro +!,^ r^--
the term :- :r-^,r :-
in itself is misnomer.
Elecronics
subsequen nJ|X5:',il:1.il,,11;,IT?,ii3l, to
in

1.2 Definition of Electronic Commerce

Electronic commerce is the application of communication
and information sharing technologies among
trading partners to the pursuit of business objectives. ln
the real world of busin6ss four distinct types
of EC mingle and interact:
tr lnformation access provides search and

D lnterpersonal communication services provide methods

for parties with mutual interests to
exchange inforrnation, "discuss" ideas, and improve their
cooperation. Examples include
gn groups jointly working out product specifications,
fi updated
asent usins erectronic mairto
:;1"#ili:"1'rilo;:"chasins
'Shopping services allow people
D to seek a
networks. This form of EC for retail sales
hears the term "electronic commerce". But
directions. As examples, it can apply t
commodities, or freight capacity.

1.3 Commerce and Virtual Enterprises

ln broader perspective commerce means transport of commodities
from place to place for exchange
purposes' The British economist Adam Smith wrote in
The Wealth of Nations 1r zzoltn-t,,commerce
is the propensi ?ngeonething for anothe/'is an intrinsic characteristic
of
processormod
human nature.

of
lffi::*,lplrue ;
and division
organ be impossLle to r.
ln ancient times, transporting commodities
over any significant distance was an expensive and
enterprise'Thus, commerce was restricted mainlyio local markets, risky
and the most commonly traded
 E-COMMERCE : CONVERGENCE OF TECHNOLOGIES / 3

articles were foodstuffs and clothing. Most people spent the bulk of their resources on food, and
what they neither grew nor gathered themselves they obtained through trade. The same was true of
clothing: Garments were either produced and handed down within the family or acquired through
trade. ln addition to food, clothing, and shelter, the rich devoted their income to conspicuous attire,
jewelry, and works ol art. As a result, an important trade in luxury items developed.
Virtual enterprises are business arrangements in which trading partners separated by geography and
expertise are able to engage in complex joint business activities, as if they were a single enterprise. One
example would be true supply chain integration, where planing and forecast data are transmitted quickly
and accurately throughout a multi{ier supply chain. Another example would be non-competing suppliers
with a common customer using EC to allow that customerto do "one stop shopping" with the assurance
that a single phone call will bring the right materials to the right location at the right time.

1.4 Electronics
Electronics is the field of engineering and applied physics dealing with the design and application of
devices, usually electronic circuits, the operation of which depends on the flow of electrons for the
generation, transmission, reception, and storage of information.The information can consist ol voice
or music (audio signals) in a radio receiver, a picture on a television / monitor screen, or numbers and
olher datalorms in a computer.
Electronic circuits provide different functions to process this information, including amplification of
weak signals to a usable level; generation of radio waves; extraction of information, such as the
recovery of an audio signalfrom a radio wave (demodulation); control, such as the superimposition
of an audio signalonto radio waves (modulation); and logic operations, such as the electronic processes
taking place in computers.

1.5 Electronic Communication

Communication is at least as old as civilization, but electrical communication elfeclively started
with the telegraph in the early 19th century.The telegraph revolutionized long-distance communications
almost everywhere, reducing the time taken to communicate across a country from days to hours or
minutes, or from months to days between continents.The early telegraph was a very simple device;
it used a direct current cellto operate an electromagnet.
Morse code, a system of dofs and dashes representing letters, was often used to send messages,
as the circuit only had two states: on, or off. When large distances had to be covered, signals were
relayed by human operators who would collect messages from one circuit and relay them onto
another. ln this way, the first transatlantic telegraph signaled about seven words per minute. The
telegraph was essentially a digital apparatus;the first analog electrical communicator, the telephone,
was patented in 1876. While we can't be sure who really invented the telephone - Bell usually gets
the cr.edit as he held the patent, but other inventors like Elisha Gray played a part - we do know that
the design owed a lot to telegraphic technology.
At the time of the invention of the telephone, most effort was directed towards the development of a
'multiple'telegraph: one that could signal more than one code at a time. Despite digital communication
getting a head start, voice telephony rapidly came to dominate the wide-area communications
arena. lt is only the last few decades that have seen the development of wide-area networks exclusively
for data, and only in the last few years that this technology, in the form of ISDN , has become
availabl.e to home subscribers. Untilvery recently, if one wished to communicate between a home
computer and a remote site, one had no choice but to use a modem to convert the computer signals
into a form suitable for a voice communications medium.
4 / ELECTRONIC COMMERCE
It was not long after the invention of the telephone that Hertz discovered that electromagnetic waves
could be generated and broadcast , and in 1896 Marconi patented the'wireless telegraph,'a system
for sending telegraphic messages by radio waves. The first transatlantic wireless messages were
sent in 1902, and by 1907 Marconi had started a commercial wireless service between lreland and
Canada. Although radio telegraphy was expensive and somewhat unreliable at first, the development
of the apparatus to allow short-wave transmission made the system much more practicable, and
cable and radio communications have developed in parallel ever since.
It is only in the last few years that there has been widespread use of communications networks that
mix radio and cabletransmission: the cellular telephone network is an example of such a system.
When computers became commercially available in the 1960's, the mechanisms of electronic long-
distance communication were quite well developed. New switching techniques allowed telephone
networks to span the globe, and these could carry data at a speed quite fast enough for the computers
ol the day. However, in the next twenty years it became apparent that some features of the public
telephone networks were not ideal for data communication. Apart f rom the obvious problem that they
were designed for analog communication, they used a technique called'circuit switching'which is
inefficient in the use of the cable's information carrying capacity <inlormation carrying capacity.
ln 1969, the US Advanced Research Projects Agency, part of the Department of Defense, funded
the first dedicated wide-area network of mainframe computers, a development that was eventually
to become the lnternet. This system was noi primarily intended to overcome the inherent limitations
of the public telephone networks, but to provide a robust network that would be able to continue to
operate in the event of large-scale war damage. However, it used the principle of packet switching ,
which made much better use ol available cable capacity.
ln the 1970s, the telephone service providers started to implement data packet switching networks
for commercial and academic use. The X.25 standard for packet switched networks was published
by the CCITT in 1976. This development is remarkable in another way: it is probably the first such
standard which thought of communication protocols forming'layers';this concept is now widespread.
At abo,-tt the same time local-area networking techniques were being developed to augment the
point-to-point wiring normally used to connect computers in the same area. The Xerox Corporation
devized the ethernet protocol in 1975, variations of which are still widely used.
The local area technologies were based on the idea of local broadcasting. Modern developments in
data communications have mostly been concerned with increasing the speed, flexibility and
accessibility of networking techniques. lt is reasonable to assume that about 20 million computers
are now members of the lnternet..Modern technologies like f rame relay are faster than earlier ones
because they are simpler, rather than more sophisticated. This reduced complexity has been made
possible by the improvement in quality of communications hardware. Another recent development is
the blurring of the traditional distinction between local area and wide area networks.

1.5 The Convergence of Computing with Communications

Electronic commerce implies the application of communication and information sharing technologies
among trading partners to the pursuit of business objectives. ln the real world of business, four
distinct types of EC mingle and interact:
tr lnformation access provides search and retrieve capability for public domain 3nd proprietary
data archives. The most common example of this type of EC is information services (e.9.
Diaiog, Nexus - Lexus, and ABI lnforms) that maintain a data base and charges lor access.
Another example would be a large manufacturer communicate engineering change notices
to suppliers via dial-up access to a centralized database.
 E-COMMERCE : CONVERGENCE OF TECHNOLOGTES/ s

O lnterpersonalcommunication services provide methods for parties with mutual interests to

exchange information, "discuss" ideas, and improve their cooperation. Examples include
customer and supplier design groups jointly working out product specifications, updated
files being sent by a publisher to a printer, and a purchasing agent using electronic mail to
negotiate an expediting schedule with a supplier.
O Shopping services allow people to seek and purchase goods or services though electronic
networks. This form of EC for retail sales is what comes most readily to mind when one
hears the term "electronic commerce". But this genre of EC can be extended in many other
directions. As examples, it can apply to the purchase of used industrial equipment,
commodities, or freight capacity.
C Virtual enterprises are business arrangements in which trading partners separated by
geography and expertise are able to engage in complex joint business activities, as if they
were a single enterprise. One example would be true supply chain integration, where planing
and forecast data are transmitted quickly and accurately throughout a multi-tier supply
chain. Another example would be non-competing suppliers with a common customer using
EC to allow that customer to do "one stop shopping" with the assurance that a single phone
call will bring the right materials to the right location at the right time.
Convergence is the coming together of networks, terminal devices and applications. convergence is
made possible by the fact that the networks, at least the telecommunicatinos networks, have largely
been digitized-CATV networks currently are undergoing that process. Additionally, Cigital
telecommunicatins networks are based on, supported by and managed by computer systems, Further,
access across those networks is provided by linking access to specialized applicatinos residing on
computer systems connected to and even embedded in the networks.
75 years after the invention of telephone, an, experiment was made in USA to send written message
over a telephone through a digital computer in year 1940. Dr. George Stibitz used telegraph lines to
send data f rom Darmouth college to Bell Laboratories calculator in New York city. This started the era
of converging technologies that is still continued. Fig. 1.1 shows the overlapping view of the two
different technologies in fifth decade of twentieth century.

- Flg. l.l : ConverglngTechnologles.

A converged inlormation industry operating within the context of an advanced information infrastructure
will be a huge boost lor international business and trading resources. SeveralWashington think-
tanks estimate that it could spur more than $300 billion annually in new sales and increase worker
productivity by 20 to 40 percent.
 6 / ELECTRONIC COMMERCE
Already, an estimated two-thirds of allAmerican jobs are information related,
and that number will
increase as the shift f rom manufacturing to service industries continues. An information
highway will
also entail new products and services-and hence new jobs. There should be societal
benefits as
well. lf properly managed, this highway would allow people to become better educated,
healthier,
more productive, more informed, and, of course, better entertained.
The convergence of information industries will happen because the technological and
business
imperatives are compelling. ll one company does not see the possibilities, anotlier
will. What is not
set in stone is exactly who will build it, when it will happen, or what applications will prove
the most
popular.
As the Chinese saying goes, "May you live in interesting times." ln that regard, we are in for
some
interesting times indeed; few periods in the history of any industry can compare with the next
decade
or two of the information industry.

1.7 Technology Convergence and Global Commerce

The US economy activity namely the lT sector grew from around 6.1 percent in 1990 to g.2 percent
in 1998, employing roughly 7.4 million workers (or 6.2percent of the total employment).
Most remarkably,
investments in lT (including computers, software, and communications now account for
45 percent of business investments in the US. Other countries such as"quipr"ni;
Finland are emerging fast
with similar patterns thus demonstrating the power of digital convergence on economies.
Currently, computing telecommunications, meciia (TV and publishing) and the lnternet exist as separate
mediums where business-to-busrness(BTB)or business-to-govelnment(BOG) or peoplelo-people
(POP) interact and work independently and not through integiated mediums. Now the move
is to get
TV to the desktop, radio to the desktop, and the lnternet witn tutt blown integration of media which
includes transactions. What will happen will be truly in my opinion a great peiioO of growth of every
conceivable economy.
These mediums are about to collide and integrate and thus the ideas qf the convergence will be real!
This will result in TVs integrated with interactive content, cable TV providers will inte-grate the lnternet
and the boundaries that divide what we see today will be blurred to such as extent w[ere you will ask.
Traditional media industries will see large scale integration and thus the transformation of products
and services, as we see them today. All of this is happening right now and the impact on economies
is going to be incredibly interesting and violent. So what are the implications with respect to economies?

Business-lndustries who today work and depend directly or indirectly on these new age business will
see large scale cross integration and convergence which will impact the economics of the products,
delivery and services. Traditional media companies will buy or merge with online service providers,
companies that are analog will go digital, services will get customized and the customer will benefit
with cross integration of businesses and industries.
Traditional industries such as banking will be transformed into digital empires that spawn huge computing
power read convergence) where the customer will work with all media as a part of thJservice and
transactions will be truly global. Banks will, for example, become increasingly virtual resulting in the
decreased use of real estate. TimesBank is one such example in lndia. Thus willfollow industries
from healthcare to education and oil and gas.
Customers are also getting increasirrgly virtual (already a phenomenon in lndia with the large scale
acceptance of cableTV), thereby placing new demands on business to reach, process, transact and
deliver products of all kinds in new models of business never seen before. The customer will benefit
and so will be economies of scale for companies.
 E-COMMERCE : CONVERGENCE OF TECHNOLOGIES/7

1.8 Advantages of Electronic Commerce

Electronic commerce [e-commerce] is the use of telecommunications and dala processing technology
to improve the quality of transactions between business partners. lt has existed in some lorm since
the invention of the telegraph and early automated data processing equipment but its use has greatly
increased. E-commerce improves organizational efficiencies by leveraging data processing, database
storage, and data communications technologies. Existing network facilities can be utilized to achieve
great savings in labor costs and the reduction of paper storage and handling facilities. lt has enabled
firms to be more effective in improving the quality of standard goods and services and to offer a
variety of new services. The global marketplace has become larger and wider than ever because of
the expansion of e-commerce activity.

1.9 Applications of Electronic Commerce

The groMh ol electronic commerce has been fueled by the availability of worldwide telecommunication
networks along with enhanced information delivery techniques utilizing the various multimedia
technologies.
Client-server architecture allows systems with different hardware and software platforms to interact
in an open system computing environment. Electronic commerce can be viewed from two business
application perspectives. One perspective on e-commerce in business is to look at those businesses
engaged in providing electronic commerce technology to help enable other businesses. lnternet
Service Providers ISP] and private commercial network providers help tie companies into wide area
networks [WAN] for use in e-commerce activity.They may offer additional features such as protocol
conversion and are they described as Value-Added Networks [VAN]. Other types of firms specialize
in helping organizations build electronic commercial sites. Software firms selldata encryption and
other types of security-related technologies, user interface programs and other types of software
used to implement e-commerce. Other firms specialize in consulting and designing e-commerce
applications such as World Wide web sites.
Another perspective on e-commerce is to examine the application uses to which a business uses
such technologies. Linkages between business partners may be tightened through improvements in
Just-ln-Time [JlT] supply logistics overall improvement in supply chain management.
Consumer marketing and sales techniques like shopping kiosks and home shopping techniques
have removed barriers of distance and increased product awareness. Electronic publishing services,
financial news and remote banking services are now avaihble over networks. Commercial databases
and library seruices provide general information resources.
On-line job placement services are numerous, and distance education and job training services can
assist in career development. A wide variety of recreational and entertainment services are currently
available and such services will expand dramatically in the near future.

l.l0 The Technologies of Electronic Commerce

While many technologies can fit within the definition of "electronic commerce," the most important
are:
tr Electronic data interchange (EDl)
o Bar codes
c Electronic mail
o lnternet
8 / ELECTRONIC COMMERCE
tr World Wide Web
D Product data exchange
D Electronic forms

l.l I Digitization of the Network

Wilh digitization,allof the media becometranslatable into each other-computer bits migrate merrily_and
they escape from their traditional means of transmission. lf that's not revolution enough, with
digitization, the content becomes totally plastic-any message, sound, or image may be edited from
anything into anything else.
Historically, information was created, stored, manipulated, and transformed by its form. Textual
information existed mostly as hard copy or as metallic templates used by printers to make copies.
Audio information existed mostly as analog waveforms, captured on vinylor magnetic tape. Stilland
moving images were rendered in chemical form; later on, moving images shifted to analog form
through the development of videotape technology. Only computer-based information existed as precise
digitaldata.
The digital world is characterized internally by a monotonous sameness; regardless of what they
represent, constellations of zeroes and ones remain just that to the computer. As more and more
content is digitized, the computer virtualizes it and liberates it from most of the shackles of its
previous medium.
Over time, the computer industry has developed numerous technologies to store and manipulate
digitaldata. Digital information is essentially distortion-free, perfectly and infinitely replicable, instantly
transportable (given fiber, cable, and future communication bandwidths), highly translatable, inherently
editable, readily amenable to various forms of processing, and compatible with other forms of digital
information.
The network has been undergoing a process of digitization since the 1960's. Digital switching systems
and their complements, in total, an end-to-end network which delivers more bandwidth, bqttererror
performance at lower power levels, and lower overall cost. Compression is relatively easily
accomplished,yielding highly efficient utilizatino of bandwidth, and access and datasecurity are easily
enhanced through the use of data encryption techniques. Such a network is also more controlable
and manageable on a centralized basis.
Digital networks also have the unique ability to treat all information streams as equals-all information
is carried as a digital bit stream.
The primary driver of convergence of different forms of information is technologicalchange, primarily
the rapid diffusion of digital technology into an ever-wider array of information businesses. Beyond
digitization, dramatic changes in the computing and telecommunications industries (primarily in laster
microprocessors and increasing bandwidth) are also driving convergence. We examine each of these
in turn.

l.l2 The lnformation lndustry and e-Commelce

When broadly defined, worldwide revenues of information-centered businesses (including publishing,
entertainment, computing, consumer electronics, imaging, telecommunications, and a host of smaller
sectors) exceed one trillion dollars annually.
The information industry has been defined in many diflerent ways. Traditionally, it has been viewed
as consisting of three elements: computing (dealing with information storage and processing), office
 E-COMMERcE ; CONVERGENCE OF TECHNOLOGIES / 9

technologies (dealing with task automation and information creation and display), and
telecommunications. We have recognized lor many years now the implications of the gradual blurring
of technological lines between these three components, especially between computing and
telecommunications.
However, the traditional definition is unduly limited. Both the scope of the industry, 1s well as the
extent of its ultimate technological convergence, is far greater than previously suggested'To
understand
that, we must first broaden the definition of the information industry.
,r0r,rili

(:rt:^tl: & (.'0l,tl:ct

((:alYll:h t)

lllstl-\Y
?.
a- (lDlVtC[\l

sroru:
(:ql:uatRl Divlctlv
F
fl{(xrl:!it
(,\l'ltl.lc".lrlONsl

Das-ru18t: rl:
I Ill^ssl'trLl)

Figure 1.2 :The lnformation Mega'lndustry

information
Figure 1.2 presents a broaderview of the information industry. As depicted in the columns,
audio/video, and data' Historically, each form of
exists in five basic forms: voice, text, images,
information has been dominated at the retail level by one imaging
consists of cameras, movies, industrial imaging, xerogra
primarily
been the domain of entertainment-related industries such cast and
studios. ln addition, several important background or supplier
cable television networks, and Hollywood
industries, including producers oi components and machine tools, have existed to support each
form-based industrY.
in ea-ch one of those
The horizontal dimension of the matrix captures what is done with information
processed, or distributed. we first examine the vertical
industries: it is created, displayed, stored,
columns: the forms of information.

l.t5 The Form'Based lnformation lndustries of the Past

lnformation industries have traditionally been defined in terms ol the form
of information for two
important reason ing each type of information have
been vastly differ handle other forms of information.
second, the gove on-based companies from entering
other types of information businesses.
o Text
The first information industry was based on text a
in 1455 and movable type later in the lifteenth
industry has been printing and publishing (news
emphasis has been on content creation, with a
 1O / ELECTRONIC COMMERCE
The principal technologies at the heart of the industry
are the mechanical and electromechanical
.:y:r'."t sup,ptier inoustries (e.g., printins presses, type
,"#.r:*,'l::r"i::,r^:llfl3: l":o_.0:l':1
foundries, and offset printing) iupport the pubrishing in'dlstry.
D lmages
ntity on the capture, storage, and printing of
race when Louis Jacques Mand bague-rre
which he and his camera had
capturedandfixedafaith.furimager?#,,r".rn"primary,"oJs;"uon
Today, however, the imaging induitry is rarge and
diverse and incrudes
makers, filmmakers, industriarand medicirfirming (such
as r"r,.nog
include xerography and mimeography. The tunctions
most empnasized in this industry have been
g:tfl?':T,:f.",,"" (via capturei, stoiage, and display.The undertying technotogi"s r,aue historicalty

D Voice
The telephone industry, created in the 1g7Os, q
industry includes phone companies and other s
manufactu rers, copper-wire producers, and nu me
of the telephone industry has been voice distri
image (fax) and data transport. The industry has also
been involved in the information content
business (e'g', the Yellow Pages) and in the voice-display
business via the manufacture of terminal
equipment such as telephone set cal underpinnings of the industry have
been in the transmission and sw ls; however, the technology is moving
rapidlytoward 1OO-percent softwa ng.
O Audio/Video
This category is comprised of audio information (m
industry has owned these forms of information f
define here as the entertainment industry, and eac
Hollywood, music studios, and television networks have predominantly
concentrated on content
tion (done by movie theaters, video, cable television
electronics industry
the technologies at
een a move toward
catesorv;rhey have exceiled in contenr, dispray, i:illt"..iil;:1,ffi::';:J:;T:iltT:,"ffi:i"
O Data
Data represents the ased information businesses. Here, the major industry
has beencomputing, e tabulating and calculating businesses. From mainframe
computers, the indu ers and thLn personal computers, workstations, and
supercomputers' Forcomputing, the main emphasis has been on information
storage
while it was mechanical and electromechanical in its early "nd-pro"es.ing.
)rears, the technoloiical base for this
information form was the first to become predominantly elettionic
and digital.
As described, the technologies underlying these form-dominated
industries were inherenly different
and formed a logical basis for their definition and separation. All
of that is changing, however, as the
 E-COMMERCE : CONVEBGENCE OF TECHNOLOGIES / 11

form of each information type becomes digitized. Once voice, text, images, audio/video, and data
are translated into their binary equivalents, the rationale of a separate industry to support each
becomes unsupportable. ln the process, the more recent of these industries (i.e., those on the right
side of the matrix in Figure 2.1 will enjoy significant technological leadership over the others and,
thus, may become stronger competitors or consolidators of the total information industry.

l.l4 The Global lnformation lnfrastructule (Gll): lnternet

Gll is still in the early stages of its development, is already transforming our world. Over the next
decade, advances on the Gll will affect almost every aspect of daily life education, health care,
-
work and leisure activities. Disparate populations, once separated by distance and time, will experience
these changes as part of a global community'.
No single force embodies our electronic transformation more than the evolving medium known as the
lnternet. Once a tool reserved for scientific and academic exchange, the lnternet has ernerged as an
appliance of every day life, accessible from almost every point on the planet. Students across the
world are discovering vast treasure troves of data via the World Wide Web. Doctors are utilizing tele-
medicine to administer off-site diagnoses to patients in need. Citizens of many nations are finding
additional outlets for personal and political expression. The lnternet is being used to reinvent
government and reshape our lives and our communities in the process.
As the lnternet empowers citizens and democratizes societies, it is also changing classic business
and economic paradigms. New models of commercial interaction are developing as businesses and
consumers participate in the electronic marketplace and reap the resultant benefits. Entrepreneurs
are able to start new businesses more easily, with smaller up-front investment requirements, by
accessing thb lnternet's worldwide network of customers.

t.t5 Internet Technology

The lnternet has been described as "a loose collection of related networks' or as a "network of
networks." Both of these descriptions are accurate,in a sense,but both fall short of describing fully
what the lnternet really is.That is perhaps because it is very hard to exactly describe the lnternet; it
appears to be differentthings to different people.lnternet is called network of networks because there
are actually many different network systems redily accessible through the lnternet. Each of these
networks has its own roots,and each collectively helps to define the scope and breadth of the
lnternet.

Fig. I .3 : Internet : Networks of Various Types

 12 / ELECTRONIC COMMERCE
The lnternet is a "network of networks," meaning that many different
networks operated by a multitude
of organization are connected together collectively to form the internet.
communicate,share resources,a d share data with people across
inu lnt"rnet lets you
the street or around the world. The
biggest advantage of the lnterne is that it is a tool providing accesr
to vast (worldwide) quantities of
information.

distances, as shown in Figure 1.3.

A variety of programs have been installed on the lnternet to use these
services, combine them, or
make them easier to use. These include Archie, Gopher, WAIS and the
World wiOe Weu (WWW).
lndividuals, companies, and institutions use the lnternet in many ways.
Businesses use the lnternet
to provide access to compl
commerce online, including
sales services. Businesses
and other forms of commun
The use of electronic mail overthe lnternet has greatly speeded communication
between companies,
among coworkers, and between other individuals. Media and entertainment
companies use the lnternet
to broadcast audio and video, including live radio and television programs;to offer
online chat, in
which people carry on discussions using written text; and to offer onlinJne*s and
weather programs.
Scientists and scholars use the lnternet to communicate with colleagues, to perform
research, to
distribute lecture notes and course materials to students, and to publish paper. and
articles. lndividuals
use the lnternet for communication, entertainment, finding iniormation, and
to buy and sell goods
and services.

obaltrade in services. World trade irlvolving

ctures, videos, games, sound recordings),
hnical information, product licenses, financial
nd technical consulting, accounting, architectural
design, legal advice, tlavel services, etc.) has grown rapidly in the past d-ecade, no*l."ornting
for
well over $40 billion of U.S. exports alone.
An increasing share of these transactions occurs online. The Gll has the potential to revolutionize
commerce in these and other areas by dramatically lowering transaction costs and facilitating
new
types of commercial transactions.
The lnternet will also revolutionize retail and direct marketing. Consumers will be able
to shop in their
homes for a wide variety of products f rom manufactu rers and retailers all over the world.
They will be
able to view these products on their computers or televisions, access information about
the products,
visualize the way the products may fit together (constructing a room of furniture on their screen,
for
example), and order and pay for their choice, all from their living rooms.
Commerce on the lnternet could total tens of billions of dollars by the turn of the century. For this
potentialto be realized fully, governments must adopt a non-regulatory, market-oriented approach
to
electronic commerce, one that facilitates the emergence of a transparent and predictable legal
environment to support global business and commerce. Official decision makers must respect the
unique nature of the medium and recognize that widespread competition and increased consumer
choice should be the defining features of the new digital marketplace.
 E-COMMERCE : CONVERGENCE OF TECHNOLOGIES / 13

Many businesses and consumers are still wary of conducting extensive business over the lnternet
because of the lack of a predictable legal environment governing transactions. This is particularly
true for international commercial activity where concerns about enforcement of contracts, liability,
intellectual property protection, privacy, security and other matters have caused businesses and
consumers to be cautious.
As use of the lnternet expands, many companies and lnternet users are concerned that some
governments will impose extensive regulations on the lnternet and electronic commerce. Potential
areas of problematic regulation include taxes and duties, restrictions on the type of information
transmitted, control over standards development, licensing requirements and rate regulation of seruice
providers. lndeed, signs of these types of commerce-inhibiting actions already are appearing in
many nations. Preempting these harmful actions before they take root is a strong motivation for the
strategy outlined in this paper.
Governments can have a profound effect on the growth of commerce on the lnternet. By their
actions, they can facilitate electronic trade or inhibit it. Knowing when to act and
important
- at least as
when not to act, will be crucial to the development of electronic commerce. This report
-
articulates the Administration's vision for the emergence of the Gll as a vibrant global marketplace
by suggesting a set of principles, presenting a series of policies, and establishing a road map for
international discussions and agreements to facilitate the growth of commerce on the lnternet.

l.l5 Components of lnternet Technology

t.l5.l The lnternet Network
But the everyday network that most resembles the lnternet is the street running right outside your
building. You've got an address on that street. And it, and the other streets in your neighborhood or
town, connect and eventually pour onto a wider street or highway. That highway connects to other
neighborhoods ortowns. And these highways eventually dump into higher-speed freeways that connect
other main highways. And the f reeways connect to airports and shipping ports that,'in turn, cross the
waters to connect to the freeways, highways (even donkey trails), and neighborhoods on other
continents.
Think of each neighborhood or town as a network of streets. lf you know the address you want, you
can find a route to some other building clear across the world. Picture, then, the "highway network"
as a network of networks. That's what the lnternet is like.
lnterestingly, you can thank the former Soviet Union for the lnternet. The forerunner of today's
commercial lnternet actually started in the '60s as a U.S. Defense department project. The desire
was to crehte a communications system that the Soviets couldn't easily bomb. Telephone networks
were vulnerable because they relied on central switching points. Nuke the switch, and you close
down large portions of the network.
The Rand Corporation came up with the decentralized network concept. lnstead of a strict hub-and-
spoke phone-switch arrangement, you had a fish net arrangement. Communication lines crisscrossed
and intersected, and messages were switched-or "routed"-f rom point to point in many directions. lf
part of the "net" was destroyed, the "Net" (initially called ARPANET) could route messages around
the disaster.
The lnternet gradually widened to serve nonmilitary research, and finally, commercial use.The National
Science Foundation initially provided the high-speed "freeway" portions of the lnternet, but now, as it
 14 / ELECTRONIC COMMERCE
has opened to commercial use, most of the main freeways are commercially
owned. lt's a complicated
ownership, but basically, big-time operators pay big bucks to telecommunications
firms for a stretch
of the highway, and then charge the rest of us by the minute or by the mile_so to
speak.
l.l5.Z WWW. World Wide Web
The World Wide Web is a collection of documents written and encoded with the
Hypertext Markup
Language (HTML). With the aid of a relatively small piece of software (called a "browser,,),
a user can
ask for these documents and display them on the users local computer, although the document
can
be on a computer on a totally different network elsewhere in the world. HTML documents (or,,pages,"
as they are called) can contain many different kinds of information such as text, pictures, video,
sound, and pointers which take users immediately to other web pages. Because Web pages are
continually available through the lnternet, these pointers may cali up pages from anywhere in the
world. lt is this ability to jump from site to site that gave rise to the term "World Wide WLO:' Browsing
the Web (or "surfing the Net") can be a fascinating activity, especially to people new to the lnternet.
The World Wide Web is by far the most heavily used appiication on the lnternet.
The World Wide Web is the multimedia experience on the lnternet. The WWW consists of pages
where you can find out just about anything you want, or don't want to know about. The best place
to
start is to a search on one of the many search engines. Click on the Net Search button at the top of
you browser and follow the instructions, or use Yahoo! to browse the Web by category.
The World Wide Web is essentially a document delivery system running over the lnternet
network.
Connected to the lpternet, Web browsing software runntng on your computer can find and fetch
documents located on lnternet web servers anywhere in the world.
Making a web site requires knowledge of "HTMI-'(HyperText Markup Language), universal document
format of the World Wide Web apart f rom more than a dozen components and application programs
listed in Unit 19 of this book.
For a fee, many companies will"host" yourWeb site, maintaining it on Web server computers connected
to the lnternet. Browsing the World Wide Web can snag you lots of information, moie ihan you might
expect' Plus, with your own Web site, you can get folks'attention from virtually anywhere in the
world, 24 hours a day.
You don't have to know much about the "Web," or how it works, to browse fairly successfully. But
if
you're planning to create a Web "site," you might find it less daunting if you understand whai you're
dealing with.
With your own Web site, anyone with Web browser software and a connection to the lnternet can f ind
the Web pages you publish. Your site can be an advertisement for you or your organization. lt can be
an on-line newsletter, a catalog of goods or services, a customer support vehicle, or an employee or
sales management system for remote offices. Think of what you're doing via brochures, catalogs,
faxes, and forms, and chances are you can do a lot of it more efficientlybver the lnternet, and the
World Wide Web, in particular.

1.15.5 Electronic l.lail

The lnternet is now the world's largest electronic mail system. More than 250 million people are
directly connected to the lnternet and can send and receive electronic mail. Through gateways to
other electronic mail systems, millions more can join in.

1.t5.4 FTP
 E-COMMERCE : CONVERGENCE OF TECHNOLOGIES /15

FTP or File Transfer Protocol is protocol used to transfer liles between computers on the tnternet.
There are two types of FTP conections anonymous.non-anonymous. lf you connect to an anonymous
FTP server then you would use anonymous as your login name and your e-mail address as a
password. Non-anonymous, you will need a private login name and password. There are also two
types of file transfers, ASCII and binary. ASCII is for text transfers only. Binary transfers are for
transfering angthing else. lf in doubt, uSe binary(bin).

1.15.5 lnternet RclayChat (lRC)

lnternet Relay Chat is whersto meet people on the net.There is a channelfor just about anythingll
First a few words of warning: Do not give any information out about yourself over irc, and do not type
in anything sorpe stranger asks you to. And please, if you have children, closely moniter their
activities on irc. (Now alter allthis, irc is a great place to visit.You meet people from all over the world
and can talk about any subject you want.)
IRC provides real-time communication with others on the lnternet.

1.15.5 Web Chat

You can also mdke use of more traditional live chat conferencing or bulletin board systems (BBSs)
with real-time capabilities. (Note that during live chats, participants actually type messages to each
other.) This type of software can be used on the World Wide Web with your browser to conduct online
chat sessions wjth other users and can accommodate between 50 and 1,000 users simultaneously.
Some companieis can use this feature on their websites to facilitate communication with customers
or as an informalion-based value-added feature.

1.15.7 News Groups

News Groups are like an international bulletin board. Each group is a forum for a different subject,
where you can post questions and answers.There are many tllousands of groups covering just about
any area of interest. You can use lnternet Explorer or Netscape Navigaior lo v.iew these groups.
Please note that any post that you make to a newsgroup will be sent all over the world to every news
server on the planet, so never post anything personal to a newsgroup. Also, there afe many newsgroups
which may contain material that is not suitable for children. Becau.se of the global nature of lnternet,
there isn't a way to control the viewing of inappropriate material The best way to prevent children
from viewing these groups is to be with them while they're surfing.

1.15.8 Usenet
Usenet is a collection of more than 5,000 newsgroups, or discussion groupsl on every conceivable
subject. For example, some newsgroups are self-help groups for victims of cancere or sexual
abuse, and oihers give the latest in gossip about show business personalities. Anyone can contribute
a message, called an article, to a Usenet newsgroup or post a reply, known as afollow-up post, to an
existing article. With the aid of a newsreader (a program designed to access Usenet newsgroups),
you can read an entire thread-all the replies to an interesting article.
The system is intended for exchange of information in an informal way. Anyone can post new messages
to the group and reply to other messages. News groups are arranged in a lose hierarchical order
covering about 5,000 subjects. About half of these are related to computing, the rest are for recreational
subjects, professional discussion and trivia. To use Usenet you need a news viewer and access to an
NNTP server. Most lnternet service providers have such a servel as do most large academic institutions.
 16 / ELECTRONIC COMMERCE
1.15.9 Telnet

l-17 Principles 0f Founding lnternet Based e.commerce

(1) The private sector should lead

s expansion
, the private
lower prices
ndustry.

(2') Governments should avoid Undue Restrictions on Electronic

Commerce
Parties should be able to enter into legitimate a
across the lnternet with minimal government invo
commercial activities will djstort development o
and raising the cost of products and services f
evolve rapidly to keep pace with the break-neck speed of change
in the technology; government
attempts to regulate are likely to be outmoded by the time theyari
' finalty -"-vrYY' ver'
-"' "n""i"0, JJpecialy to the
extent such regulations are technology_specific. .

Accordingly, governments should refrain from imposing new and

unnecessary regulations, bureaucratic
procedures, or taxes and tariffs on commercial actiiities that take place via
the lnternet.
(3) where governmental involvement is needed, its aim should be to
support and enforce
a predictable, minimalist, consistent and simple legal environr"iti
roi
"orr"r"".
mmerce and
simple legal

is necessary to facilitate electronic commerce, its goal should T,:??;'"?il1

be to ensure competition, protect
intellectual property and privacy, prevent fraud, fosteriransp"r"*V,
support commercialtransactions,
and facilitate dispute resolution.
(4) Governments should recognize the unique qualities of the lnternet
The genius and explosive sui:cess of the lnternet can be attributed
in part to its decent ralizednature
and to its tradition of bottom-up governance. These same characteristics
pose significant logistical
and technological challenges to existing regulatory roo"rr, governments should tailor their
policies accordingly. "no
Electronic commerce faces significant challenges where it intersects
with existing regulatory schemes.
 E-COMMERCE : CONVERGENCE OF TECHNOLOGIES / 1 7

We should not assume, for example, that the regulatory f rameworks established over the past sixty
years for telecommunications, radio and television fit the lnternet. Regulation should be lmposed
only as a necessary means to achieve an important goal on which there is a broad consensus.
Existing laws and regulations that may hinder electronic commerce should be reviewed and revised
or eliminated to reflect the needs of the new electronic age.
(5) Electronic Commerce over the Internet should be facilitated on a global basis
The lnternet is emerging as a global marketplace. The legal framework supporting commercial
transactions on the lnternet should be governed by consistent principles across state, national, and
international borders that lead to predictable results regardless of the jurisdiction in which a particular
buyer or seller resides.

Ll7.l Pervasive lnternet lccess and ]'lobile lnternet

ln imagining the future of pervasive lnternet access, including wireless, panelists and participants
listed major challenges as cultural/psychological concerns, complexity, network coverage and reliability
issues. Significant opportunities for accelerating the deployment of pervasive technology included
shrinkage and convergence of device sizes, proliferating and more sophisticated applications, SMS/
text messaging and improved displays. Panel members underscored the need to think beyond current
lnternet approaches.
The mobile lnternet is very different from the fixed-line lnternet and cannot be thought of as an
extension.

l.t I lntranets
'lntranet' is a term used to describe the application of lnternet technologies to serve the internal
needs of organisations and as is the greatest e-commerce facility to promote internal business to
business interests
lnternet technologies offer several important advantages over conventional means for developing
internal systems. lmportant among these are:
O The use of a common, readily available and familiar access tool, the web-browser
D The ease with which documents are handled and indexed
tr The ease with which multiple media can be supported
l.l9 The Technologies of Electronic Commerce
While many technologies can fit within the definition of "electronic commerce," the most important
are:
o Electronic data interchange (EDl)
o Bar codes
o Electronic mail
o lnternet Market
o Product data exchange
o Electronic forms

l.l9.l Electronic Data lnterchange (EDl)

EDI is the computer-to-computer exchange of structured business tnformation in a standard electronic
format. lnformation stored on one computer is translated by software programs into standard EDI
format for transmission to one or more trading partners. The trading partnerscomputers, in turn,
translate the information using software programs into a form they can understand.
 18 / ELECTRONIC COMMERCE

1.19.2 Bar Codes

Bar codes are used for automatic product identification by a computer.They are a rectangular pattern
of lines of varying widths and spaces. Specific characters (e.g- numbers 0-9) are assilned unique
patterns, thus creating a'Tont" which computers can recognize based on light reflected irom
a laser.
The most obvious example of bar codes is on consumer products such as packaged foods. These
codes allow the products to be scanned at the check out counter. As the produci is identified the
price is entered in the cash register, while internal systems such as inventory and accounting
are
automatically updated.
The special value of a bar code is that objects can be identified at any point where a stationary or
hand held laser scanner can be employed. Thus the technology carries tremendous potential to
improve any process requiring tight control of material flow. Good examples would be shipping,
inventory management, and work flow in discrete parts manufacturing.

1.19.5 Electronic Xail

Messages composed by an individual and sent in digital form to other recipients via the lnternet.

t.19.4 lnternet Xarket

The lnternet is a decentralized global network of millions of diverse computers and computer networks.
These networks can all "talk" to each other because they have agreed to use a common
communications protocol called TCP/lP. The lnternet is a tool for communications between people
and businesses. The network is growing very, very fast and as more and more people are gaining
access to the lnternet, it is becoming more and more useful.

1.19.5 Product Data Exchange

Product data refers to any data that is needed to describe a product. Sometimes that data is in
graphicalform, as in the case of pictures, drawings and CAD files. ln other cases the data may be
character based (numbers and letters), as in the case of specifications, bills of material, manuf4cturing
instructions, engineering change notices and test results.
Product data exchange differs f rom other types of business communications in two important ways.
First, because graphics are involved users must contend with large computerfiles and with problems
of compatibility between software applications. (The difficulty of exchanging CAD files from one
system to another is legendary.) Second, version control very quickly gets very complicated. product
designs, even late in the development cycle, are subject to a great deal of change, and because
manufacturing processes are involved, even small product changes can have major consequences
for getting a product into production.

1.19.5 Electronic Forms

Electronic forms is a technology that combines the familiarity of paper forms with the power of
storing information in digitalform. lmagine an ordinary paperform, a piece of paperwith lines, boxes,
check-off lists, and places for signatures. To the user an electronic form is simply a digital analogue
of such a paper form, an image which looks like a form but which appears on a computer screen ind
is filled out'via mouse and keyboard. Behind the screen, however, lie numerous functions that paper
and pencil cannot provide.Those extra functions come about because the data from electronic forms
are captured in digitalform, thus allowing storage in data bases, automatic information routing, and
in[egration into other applications. As an example, a supplies form may filled out by the requester
and automatically sent to a supervisor for approval. Once approved, the actual order may be input
ihto an EDltrarrslator, and go to the vendor by means of a structured X12 EDltransaction.
 E-COMMERCE : CONVERGENCE OF TEGHNOLOGTES / t9
1.20 Differences Between Electronic and 0ther Forms of Commerce
These methods of doing business differ from traditional commerce in the extent to which electronic
commerce combines in{ormation technology, telecommunications technology, and business process
to make it practical to do business in ways that could not othenlrrise be done. To illustrate, lei's draw
on some examples. ln each of these cases technology and business process must work together if
EC is to be successful.

l.2l Determining Technological Feasibility

As business needs are determined, it is necessary to establish the technologicalfeasibility of various
EC plans which could meet those needs. The starting point should be a cleai sense of what f unctions
each EC technology can provide to improve business functioning. We summarize these in Table 1 .1.
Table 1.1 Most Power{ul Functions of Various EC Technology
Technology BusinessValue
EDI lnte$ration of incoming and outgoing structured data into other
applications (e.9., use of customerorders to schedule production) Lowers
cost when transaction volume is high Eases communication with many
diflerent trading partners (customers, suppliers, vendors)
Bar Code Locate and identify material
lntegrate location and identification information with other applications
and data bases (e.9., barcodes inserted at loading dock can be integrated
into an advance ship notice EDltransaction).
Electronic mail Free-text queries to individuals or groups Share
information via simple messages
Share complex information (via attachments)
Collaboration across distance (by making it easierto communicate and
share information)
World Wide Web Present information about company
Search for information from a large number of sources
Electronic cdnnerce buy/sell products and services Collaboration, information sharing among
selected users within or witlrout a company
Pnodrct Data Exchange Accurate product details transmitted to trading partners
Oversight of trading partners design work
Collaborative engineering across distance
Electronic Forms Managing processes when human oversight,
approvals, or information input needs to be combined with standard
elements of information (e.9., catalogue data)
Tracking progress in a process where many people are involved doing
different activities
lntegrating human input data with automated data bases or applications
Electronic commerce (through integration with the WWW and internal
systems)
 20 / ELECTRONIC COMMERCE

1.22 Ecommerce Marketing

This section will cover the basic methods of marketing on the internet. euite simply, if you
haven,t
set aside money and time to market your e-business then it might as well not exisi. iuckily
fo1. yor,
marketing on the internet can be much more cost effective than marketing using traditional
methods.
Many are even free and can be very effective given the right planning and exe'cution.
Don't underestimate the effort that will be required in order to make your e-business
successful.your
online marketing plan should be no different than a "real-world" maiketing plan.
Before you start looking for a provider, you should stop for a moment and consider what exacly you
need. How many transactions do you expect to be completing in a month? How many proOucts
Oo
you have to put on your web site? How complex does the software need to be? How much
are you
willing to spend?
transaction providers out there, and they all have varying packages. Deciding
e that fits your needs is perhaps the most important aspect in creating an

The Directory page provides a good cross section of the companies out there. lt is a good idea to go
through a few of them and compare their prices and services. For a quick breakdown of the most
popular packages these companies provide, visit the summary section.
The methods reviewed are as follows:
O Be a resource, Not a store
tr Your Current Customers
O Search Engines and Directories
D Discussion forums, Chat and Newsgroups
O Direct Opt-in Email
O Banner Advertising
D lnternet News Releases
O Co-Branding and Sponsorships
O Affiliate Programs
D Reciprocal Links
1.22.1 Be a Resource, Xot a Store
The most successful web properties have one thing in common:They are resource. They don't just
sell a product or service. They interact with their vistors. They provide a forum for information exchange
and discussion. They answer questions. They ask questions. They build community! Before yo, go
any further take a look at your web site. ls it merely a storefront? Or, is it a community? ConsidLr
how your planned design will serve your customers and keep them coming back.

1.22.2 Your Current Customers

Often businesses assume a seperation between their "electronic" customers and their "real live"
customers. ln reality, statistics tell us that the internet has become the primary source of research
and information especially when planning purchases. Let everyone know about your web site. Make
sure it's on all your correspondence and traditional advertisements. Tell your customers about your
move online in a effort to serve them better.
But it shouldn't end there. Keep in touch with your online clients as well. Keep an e-mail list of clients
and regularly inform them of updates and offers.Iet them know that you value their business and
hope to keep them coming 6ack. Develop an ongoing relationship with your online customers
 E-COMMERCE : CONVERGENCE OF TECHNQLOGIES / 21

1,22.3 Search Engines and Directories

When you go to find something on the internet where do you go? Chances are you go to one of a
dozen or so top search engines and directories lor your information. These include sites such as
Yahoo.com, Go.com, Excite.com, Lycos.com or the browser linked sites such as Netscape.com or
MSN.com. As well, many of you probably use the directories provided by your ISP such as AOL.com.
Being listed on these sites is free and if done properly can generate a lot of traffic to your site.
Each of the search engines and directories operate differenily and thus categorize individual web
sites differently. lf you list your site on Yahoo! for instance, an actual person reviews the information
and places a description of your site in the appropriate category. On the other hand, a listing on
Excite involves a "spide/', or indexing program visiting your site and cataloguing it based on the
frequency of keywords in the underlying code and content of your site. How you design your site is
of utmost importance!The relative f requency of key words and search terms on your site can make
or break your search engine listing under your industry category. Do some research. Find out what
search terms perspective customers would use to find you and incorporate those terms into your site
content. Make sure you get listed in the major search engines and any specialty engines that may be
available.

1.22.4 Discussion Forums, Chat and Newsgroups

The most important thing to remember here is: Be a user!
Use the internet as a source of information both within your industry and outside of your normal
realm. Get involved with discussion groups, chat and newsgroups in subject areas that interest you.
Let people know who you are and what you do while being an interesting contributor to internet based
discussions. Don't spam (the internet equivalent of unwanted junk mail)the discussions with unsolicited
advertisements, that willjust serve to annoy perspective clients. lnstead develop a relationship with
the users. They will see you as a "friend in the business". This is an often overlooked and very
powerful tooi if used properly. lt can also help you get a taste for "internet culture" and help you
become an active internet citizen. A greater understanding of what drives people on [he internet will
ultimately help your business serve better and sell more.

t.22.5 Direct Opt.ln E.mail

There are a number of companies who rent out lists of "opt-in" e-mail subscribers, or voluntary
subscribers to commercial newsletters and offers. This isn't unsolicited junk e-mail, or spam, but
friendly recipients expecting regular mailings. Renting these lists can cost anywhere from $0.10 to
$0.35 per name. Of course just because you send an e-mail, it doesn't mean it Will be read. How you
write your headlines and the information you provide will play a large part in the success of a direct
e-mail campaign. Proven traditional methods can be applied to internet campaigns as well.The best
campaigns:
tr Attract Attention
O Generate lnterest
D Stimulate Desire
tr Ask for Action
Effective campaigns incorporate all of these elements, in the order listed. Especially important is a
call to action. Your campaign will not be effective unless you ask for something!

I .22.6 Banner Advertising

Banner advertising is probably the most visible form of internet advertising, yet launching a successful
 22 / ELECTRONIC COMMERCE
banner campaign can be something of a challenge. As with TV
commercials, the public haslearned
to "tune out" unwelcome solicitations. Advertiseis must work for good
a response. As with e-mail
marketing, banner ads must incorporate a number of basic factors:
O Attract Attention
A Generate lnterest
O Stimulate Desire
D Ask for Action
ln addition, a number of other factors have proven effective with
banner ads. please see our tutorial
on effective banner design.
Banner ads can be circulated using link e are
may be useful if you don't mind having splay
more professional exposure you may consider Bann
using two basic methods.

aying for that banner to .,show up" on the user,s

searched, etc.., usually for a premium on top of r

Which is better? Well, the initial thought might be that paying for click-throughs produces
a more
calculated result and is therefore more effective. This can oeieno however, o-n pre
effectiveness of
your banner and the location you choose. For instance, let's assume you
have a $5ooo budget for a
one month campaign:
tr Your CpM cost = $20.00 (Typical CpM rate)
O 5000.00 /20.00 = 250 or 25O,OOO impressions
tr Your CPC cost = $0.65 (Standard CpC rate)
O 5000.00 / 0.65 = 7692.3 or roughly 7,692 clicks
Based on these numbers a click through rate of g.o7yo would be required in
order to match the
numbers achieved by the click{hrough campaign. Most of the major sites
claim click through rates
of about 5o/"' Of course' the law of averages tells us for every banner getting
a 9% click-through,
there's another one getting 1%. other factors such as building'brand awareness
can also come into
play. There may be a value even if the banner isn't clicked.
W-here will you fit in? lt depends on your
campaign, your creativity and your end goal.
You may also find that certain sites, particularly large sites,
CpM basis. ln
this case you have no choice if you want to advertise with th
you think may
be a good advertising forum for your product and find out about
s.Alternatively,
you can approach any of a number of internet ad agencies rep
sell ad sp"ce.
1.22.7 lnternet News Releases
News Releases are a popular way to get free publicity. There are a number of lnternet
based news
services that distribute news releases to media outlets locally, nationally and around
the world. lf
your news release gets noticed the free coverage can generate huge returns.
How do you get noticed? First and foremost, your news release ha nd not
an advertisement. You need to understand who you're sending it eir job
easier. lt should be professionally written using the generally aJce
 E-COMMERCE : CONVERGENCE OF TECHNOLOGIES / 23

1.22.8 Co.Branding Site Content & Features

This may not seem like marketing at first glance but being associated with a winner can only help. ls
there a site tfrat offers complementary content to yours, or another that offers a useful service? Co-
brand! Offering their seruice or content to your users can help build community on your site and add
to its usefulness as a resource. Many sites are ready and willing to form partnerships' lt increases
brand awareness and tratfic for both parties and ultimately serves the users better.
Examples of co-branding could include:
D The provision of regular articles on subjects of interest to your users.
D The provision of anlnternet based service such as a co-branded discussion forum or chat
room.
O The provision of data such as weather reports, stock quotes or news.
lf you find a site that offers useful features or content don't hesitate to ask about co-branding or
partnership opportunities.

1.22.9 Affiliate Programs

Both starting an affiliate program and joining other affiliate programs can be beneficial to your e-
business efforts. By joining Ln affiliate program you can associate yourself with complementary
products and providayour u"ers with increased information and product selection. By developing a
network of aliiliates promoting your product or service you can increase traffic to your site and
paid on
ultimately increase sales. Affililtes are generally paid a commission per sale but can also be
a per teid or per click ba anY of a
numbercommercial softwa romoting
your product, then an affili ity' lf you
ion't'have anyone helping an make
this happen quickly andlasily. Of course, since affiliate programs are voluntary, you must put
together an attracttve program in order for it to be successful'
A typical affiliate program would offer:
O A 15"/" commission per sale (gross)
tr A $5.00 fee lor a qualified lead
O Or a $0.05 per click rate for users referred to your web site
your program should reflect the goals of your e-business and still be attractive to potential affiliates.

1.22.10 Reciprocal Links

you to their
This is a very effective and free method of site promotion. Links. Ask everybody to add
list of links. plain and simple. you don't have to restrict you cross-linking plan to related and
complementary sites; add educational directories, business directories, community sites, local
process but a
sites,...EveryOoOy.you can never have too much exposure.This is a time consuming
worthwhile one. Not only will users from other sites find you, but since many of the search engines
engines more
spider sites by following all of the links on a page, your site will be seen by the search
priorities.
often! Make sure recipiocal linking is high on yot r list of web marketing

1.23 Breakthroughs in Computing Technology

paradigm
The advent of the microprocessor represented the beginning of distributed computing, a
and
shift that pushed the power of the computer to the deslitop. f urtfrer advances in miniaturization
have made laptop computers more power{ulthan mainf rames were in the early 1980s'
electric
"ior"g"
Key developments in computing in recent years have been the following:
 24 / ELECTRONIC COMMERCE
A Processing
There is a continuous migration toward more powerful,
smailer, and less expensive processors.
Aided by advances in very large scale integration (vLSi) of
micioprocessors, computer hardware
systems have evolved rapidly from the earlier mainframe-based
modeltoward one based on desktop
computers, laptops, and pDAs.
O Data Storage
The trend in data storage is toward greater capacity, easier
access, and lower cost. paralleling the
improvements in computer hardware, data storagecapabilities
are expanding, and their costs are
declining' Contemporary systems are designeJ to uccommodate
video images of ever-higher
resolution, along with rapidly growing amounts of alphanumeric
data. cD-RoMs provide.much greater
storage capacities than earlier modes;their appaient successor,
DVD-ROMs, can store a two-hour
movie on a disk the same size.
O Miniaturization of Component technologies
Miniaturization is enabling manufacturers to incorporate computer-on-a-chip
components into a wide
variety of products that are becoming smarter through the use
ol tuzzy togic, exjeri systems, and
smart networks.
O Display
The dramatic improvements in processing p
understood as a continuous process. lmprove
As color replaced black and white television, th
cathode ray tubes in both computer monitors an
include improvements and cost reductions for
computers. Other technologies still in devel
including plasma screens and digital high-def
O Software
Software is becoming easierto use and is more ve
user interface (GUl) systems (such as Macintosh
has made computers much more accessible to
application programs continues to grow rapidly,
assisted software engineering (CASE) and object_o
programming language, has shown significant promrse
as a cross-platform programming language
ideally suited to the lnternet.
George Gilder's Law of the Microcosm
1' The power of the chip grows faster than the power of the host processor running a vast
system of many terminals.
2' The power of the individual commanding a single workstation increases
lar faster than the
power of an overall bureaucratic system.
3. The organization of enterprise follows the organization of the chip,
4' The power of entrepreneurs using distributed information technology grows
far faster than
the power of large institutions attempting to bring information to heel.
5' Rather than pushing decisions up through the hierarchy, the power
of microelectronics
pulls them remorselessly down to the individual.
 E-COMMERCE : CONVERGENCE OF TECHNOLOGIES / 2s

Figure 1.4 shows the rapid growth in embedded microprocessors.

E
9r*
*
$ tt t t IJ a.ru n<t fu t eta p ffi wc f 6
3^ ratl)
2
::l G o fi r I I ft r rvlcf o/,r4.1d4 o a*
^

.FI

Figure 1.4 : Embedded versus Computer Microprocessors

1.24 Breakthroughs in Communications Technology

You think computer prices are plummeting? Wait till you see what happens to bandwidth. lnfinite
processing power will get you only so far with limited bandwidth. But the coming era of nearly free
bandwidth will liberate the computer to fulfill its powers.
While computing power and affordability are expanding at a dramatic rate, they are doing so in a
relatively steady fashion. On the other hand, advances in telecommunications promise even greater
change of a discontinuous nature_we will see an explosion of bandwidth in coming years that will
dwarf anything seen in the past.
lmprovements in bandwidth had been slow and steady, but, driven by powerful market dynamics,
quantum advances in the delivery of broadband services are emerging.While fibey-optic lines marked
a dramatic increase in the backbone capacity of long-distance networks, recgnt advances in dense
wave multiplexers, digital subscriber line (DSL)technology, and cable modems herald a paradigm
shift in the types of information that can move across networks. A fitting analogy for this explosion
in digital transport capacity can be seen in the development of the PC industry. Microsoft CEO Bill
Gates founded his company on the keen observation that computing power, once prohibitively
expensive, would become cheap.The resulting shift from centralized to distributed processing created
a paradigm shift in the computer industry. When similar improvements are created in the price/
performance ratio of bandwidth, parallel shifts in the communications industry are inevitable.
As a lesult of anticipated growth in telecommunications bandwidths, some obseruers predict a reversal
of the recent decentralizing of computing power. When the network runs faster than the processors
and buses in the PC, the computer hollows out. The network becomes the bus, and any set of
interconnected processors and memories can become a computer regardless of their location.
Through improvements in technology, computer speeds will rise about a hundredfold, while bandwidth
increases a thousandfold or more. Under these circumstances, the winners will be the companies
that learn to use bandwidth in combination with (and sometimes as a substitute for) computer
processing and switching.

t.25 The Sociology of Convergence

The primary focus of convergence industries to date has been on the technologies that make it
 26 / ELECTRONIC COMMERCE

ogical implications will ultimately

f the lnternet. The assumption of
and networks was that video-on-
iller applications driving customer demand. When
this did not materialize, broadband projects were scaled back or shelved. lt was
the dramatic, and
totally unexpected, growth in lnternet use that created the demand for more bandwidth
to the residential
marketplace.
The sociological band communications infrastructure are not yet
fully understood his interactive broadband technology will cause
the most dramat ce the introduction of the automobitel it will affect
how people shop, socialize, are entertained, conduct business, and handle finances.
Critical to such adoption will be the nature of the interface. Any technological interaction
that users
regard as dehumanizing will be shunned; it will be imperative, therefore,ln"t nigfr-tech companies
pay great attention to high-touch issues. Videoconferencing, for example, can greatly
increase the
human quotient in communications. Conversely, voice-response systems frustrat-e cattLis
who would
prefer to interact with a fellow human being.
ln the global market, convergence will have a dual impact. For developed economies,
it will foster a
higher degree of cross-cultural exchange as global communications and transactions become
highly
facile. Developing economies will benefit greatll from the affordability that comes with volume;
deploying these technologies once the costs have come down will provide great economic
development
benefits. The creation of a relatively inexpensive electronic infrastructure can reduce the need for
more expensive physical infrastructure. lt can also aid in better allocation of resources and in
reducing
waste.

1.25 The lmpact of Convergence

The primary focus of convergence industries to date has been on the technologies that make it
possible to combine different forms of information. However, sociological implications
will ultimately
drive the industry. This is most clearly illustrated by the explosion of the lnternet. The assumption of
cable and phone companies in their earlier attempts to build broadband networks was that video-on-
demand and interactive shopping would be the killer applications driving customer demand. When
this did not materialize, broadband projects were scaled back or shelved. lt was the dramatic, and
totally unexpected, growth in lnternet use that created the demand for more bandwidth to the residential
marketplace.
The sociological implications of an interactive broadband communications infrastructure are not yet
fully understood but will undoubtedly be profound. This interactive broadband technology will cause
the most dramatic shift in behavioral patterns since the introduction of the automobile] it will affect
how people shop, socialize, ate entertained, conduct business, and handle finances.
Critical to such adoption will be the nature of the interface. Any technological interaction that users
regard as dehumanizing will be shunned; it will be imperative, therefore, that high-tech companies
pay great attention to high{ouch issues. Videoconferencing, for example, can greatly increase the
human quotient in communications. Conversely, voice-response systems frustrate call-ers who would
prefer to interact with a fellow human being.
ln the global market, convergence will have a dual impact. For developed economies, it willfoster a
higher degree of cross-cultural exchange as global communications and transactions become highly
facile. Developing economies will benefit greatly from the affordability that comes with volume;
deploying these telhnologies once the costs liaue c-ome down will provide great economic development
 E-COMMERCE : CONVERGENCE OF TECHNOLOGIES / 27

benefits. The creation of a relatively inexpensive electronic infrastructure can reduce the need for
more expensive physical infrastructure. lt can also aid in better allocation of resources and in reducing
waste.

1.27 A Paradigm Shift The New lnformation lndustry

Eric Hoffer stated :
*"We used to think that revolutions are the cause of change. Actually it is the other way around:
change prepares the ground for revolution."
With information technology moving toward electronics and digitization, the structuraltranslormation
of the information industry has become inevitable. lndustry structure is driven by the definition and
extension of certain core competencies. A criticalcore competence for most companies is a mastery
ol the enabling technologies that help them create, produce, and distribute their products and services.
ln the traditional definition of information industries by media, enabling technologies were different
for each medium (voice, text, image, video/audio, and data). Firms could thus specialize by devoting
resources to developing distinctive competencies in those technologies.
The underlying principle of vertical integration of these industries around the form of the content lvas
logical. However, digitization transforms all content to the same base units. ln the face of this
trinsformation, it is no longer logicalto integrate eiach industry vertically by the form of the content.
All information companies now harness essentially the same technologies, and these technologies
are rapidly becoming multimedia. Therefore, the underlying logic by which companies participate in
the information industry must reflect this new reality.
There will be a fourfold structural impact of the migration of the entire information industry toward
digital electronics: the industry will reorient itself along the horizontal axis depicted inFigurel .5 (i.e.,
based on capabilities). As Figure 1.5 shows, there will be a series of within-industry and cross-
industry consolidations as major players position themselves for the future based on a functional
specialization.The transformation will result in only three major industries (not five), which suggests
that it is going to become more efficient in the process.The three industries will be digitized content,
multimedia devices, and convergent networks.Today's computer industry will largely disappear and
will primarily become the provider of processing, memory, and storage capabilities to the three main
industries.
fr FOBlts
-->
l tiXI t\t^flis V(|t(S. Dla.ti\ ^lrl)l(l|
vttlti0

-"]-'
I NFotrMATroN tltcnwAYs'

Figurel.S : How the Information IndustryWiil Realign

The impact of the information industry will be pervasive throughout other industries, given the extent
to which electronic technologies can fuse with other technologies. For example, the automotive and
appliance industries use significant and growing amounts of information technology.The logic of this
 28 / ELECTRONIC COMMERCE

ch
inf
co
on
pe
industry was highly inefficient in some areas and efficient in other
areas. As they focus on their core
competence, industries will have to divest noncore functions to specialist prouid"rs.
Some companies from each form-based industry will become the new
incumbents in the functionally
defined industries of the f uture. They will be best positioned to extend
their f unctional core competence
and broaden their base across allthe different media, as depicted in Table
1.2.
Tabre 1.2. core competencies in the New rnformation rndustry
T14>e of Information Business Examples of Needed Core CompEencie CLtrrent
lndustries Mapping to lt
informati.on content Fostering and managing creativity, information gathering, and
programming skills publishing and entertainment
inf orrnat,ion appliances strategic sourcing, design and
nt engineering and marketing,
ity battery power consumer

information transport network management, interactive communications, billing

systems, and lT platforms public telephone networks, ca-ble TV,
broadcast media, and private networks

1.28 The Future of Electronic Commerce

Some of the directions that the industry is moving are truly incredible. VISA
and t{asterCard just
released the specifications for a technology that will make online cash
and smart cards more viable.
Hewlett Packard just purchased VeriFone, the makers of those boxes that your
card is swiped
through at the supermarket. We can't be far from the day when new computers
and public Net
terminals are shipped with magnetic readers that let you swipe your credit card
through them if you
want to buy something online.
mpanies are positioning themselves to
as traditional shopping malls. Almost
f it's just a T-shirt or bumper sticker in
e-commerce is fast becoming an integ
Silk Road, ancient trade route linking China and imperial Florne, named after the
silk carried on it.
Also called the Silk Route, it was about 6000 km (4OOO mi) long, stretching by various
routes from
the Chinese capitalChang'an (now Xi'an), across the North China Plain, tnrougn
the pamirs and the
Karakorum Range to Samarqand and Bactria, to Damascus, Edessa, and the Mediterranean ports
of
Alexandria and Antioch. The Silk Road began to be used around 100BC, after Emperor
Wu Ti of
China's Han dynasty subdued large areas o-f Central Asia by conquest and alliance. The area,s new
stability, and extensive Han road building, enabled caravan trafiic to travel these vast
distances,
which favored high-value goods: silk from China; wool, gold, and silverfrom Rome.
Caravans generally
met on the road and traded goods, ratherthan traversing the entire route. ldeas also
traveled to and
from China along the Silk Road. Nestorianism, a sect of Christianity, was introduced into
China from
Europe and Buddhism came to China from lndia. The Silk Road fell into disuse when the
Roman
 E-COMMERCE : CONVERGENCE OF TECHNOLOGIES / 29

Empire disintegrated in the Sth century, and safety conditions deteriorated after nomadic tribes came
to control sections of the route. lt was used intermittently thereafter during subsequent, more peaceful
periods. Under the Mongol Empire in the 13th century, Venetian merchant Marco Polo traveled to
China by the Silk Road, a trip that took about three years.

t.29 Methods of E-commerce

tr Electronic Data lnterchange (EDl)
EDI is the computer-to-computer exchange of structured business information in a standard electronic
format. lnformation stored on one computer is translated by software programs into standard EDI
format for transmission to one or more trading partners. The trading partnerscomputers, in turn,
translate the information using software programs into a form they can understand.
Electronic Data lnterchange [EDl] concerns the exchange of transaction data between business
partners in a standardized electronic format.
These standard EDI formats have been issues by the American National Standards lnstitute [ANSI]
and are generally referred to as the X.12 standards Many types of forms are def ined, each relevant
to the type of transaction that is being conducted. An application, such as order-entry or accounts-
payable, "translates" the internal native format of the data into an ANSI X.12 version of a business
transaction form. The resulting EDI document is then sent between business partners by using a
"third-party" network provider. ln ihe past, EDI transfers were often carried by private Value-Added
Network [VAN] providers, but now services are offered over the public lnternet by lirms such as
Premenos, which may result in dramatic savings over private networks as well as greater convenience.
Among the most widely perceived advantage of EDI is the speed in which transactions can be
processed.This has furthered capabilities of organizations to adopt just-in-time UlTl logistics. Another
value of EDI is due to the ability to integrate the transaction handling processes with other computer
based systems in the enterprise. This has reduced errors due to manual processing and provided
better security.
Finally, as a result of overall increase in efficiency, EDI has provided cost savings. Estimates of
savings through processing efficiencies alone are about a 75% reduction on average.
tr BarCodes
Bar codes are used for automatic product identification by a computer.They are a rectangular pattern
of lines of varying widths and spaces. Specific characters (e.9. numbers 0-9) are assigned unique
patterns, thus creating a'Tont" which computers can recognize based on light reflected f rom a laser.
The most obvious example of bar codes is on consumer products such as packaged foods. These
codes allow the products to be scanned at the check out counter. As the product is identified the
price is entered in the cash register, while internal systems such as inventory and accounting are
automatically updated.
The special value of a bar code is that objects can be identified at any point where a stationary or
hand held laser scanner can be employed. Thus the technology carries tremendous potential to
improve any process requiring tight control of material flow. Good examples would be shipping,
inventory management, and work flow in discrete parts manufacturing.
O Electronic Mail
Messages composed by an individual and sent in digital form to other recipients via the lnternet.
 30 / ELECTRONIC COMMERCE

tr Intern0t
The lnternet is a decentralized global network of millions of diverse computers
and computer networks.
These networks can all "talk" to each other because they have agreed to use
a common
communications protocol called TCP/lP. The lnternet is a tool f,cr, comrunications
between people
and businesses' The network is growing very, very fast and as more and more people
are gaining
access to the lnternet, it is becoming more and more useful.
tr WorldWideWeb
The World Wide Web is a collection of documents written and encoded with the
Hypertext Markup
Language (HTML). With the aid of a relatively small piece of software (called a "browse/'),
a user can
ask for these documents and display them on the users local computer, although
the document can
be on a computer on a totally different network elsewhere in the world. HTML doluments (or,,pages,"
as they are called) can contain many different kinds of information such as text, pictures,
video,
sound, and pointers which take users immediately to other web pages. Because Web pages
are
continually available through the lnternet, these pointers may cali ui p"g". from anywhere
in the
world, lt is this ability to jump from site to site that gave rise toihe term "World WiOe
WLO:' Browsing
the Web (or "surfing the Net") can be a fascinating activity, especially to people new
to the lnternet.
The World Wide Web is by far the most heavily used appiication on the lnternet.
O Product Data Exchange
Product data refers to any data that is needed to describe a product. Sometimes that
data is in
graphicalform, as in the case of pictures, drawings and CAD fiies. ln other cases
the data may be
character based (numbers and letters), as in the case of specifications, bills of material, manufacturing
instructions, engineering change notices and test results.
Product data exchange differs from other types of business communications in two important
ways.
First, because graphics are involved users must contend with large computerliles and with problems
of compatibility between software applications. (The difficulty of exchanging CAD files from one
system to another is legendary.) Second, version controlvery quickly gets very complicated. product
designs, even late in the development cycle, are subject to a great deal of change, and
because
manufacturing processes are involved, even small product changes can have malJr consequences
for getting a product into production.
tr Electronic Forms
Electronic forms is a technology that combines the familiarity of paper forms with the power
of
storing information in digital
lines, boxes, check-off lists, and places for signatures. To the user an electronic form is simply a
digital analogue of such a paper form, an image which looks like a form but which appears on a
computer screen and is filled out via mouse and keyboard. Behind the screen, however, lie numerous
functions that paper and pencil cannot provide. Those extra functions come about because the data
from electronic forms are captured in digitalform, thus allowing storage in data bases, automatic
information routing, and integration into other applications. As an example, a supplies form may filled
out by the requester and automatically sent to a supervisor for approval. Once approved, the actual
order may be input into an EDltranslator, and go to the vendor by means of a structured X12 EDI
transaction.
D Differences Between Electronic and other Forms of commerce
These methods of doing business differ from traditional commerce in the extent to which electronic
commerce combines information technology, telecommunications technology, and business process
 E-COMMERCE : CONVERGENcE OF TECHNOLOGIES/ 31

to make it practical to do business in ways that could not otherwise be done. To illustrate, let's draw
on some examples. ln each of these cases technology and business process must work together if
EC is to be successful.
What is E-Commerce?
E-Commerce is the buying and selling of goods and services across the lnternet. An e-commerce
site can be as simple as a catalog page with a phone number, or it can range all the way to a real-time
credit card processing site where customers can purchase downloadable goods and receive them on
the spot. E-Commerce merchants can range from the small business with a few items for sale all the
way to a large online retailer such as Amazon.com.
Web Designing and Publishing: Form of Electronic Commerce
lntroduction
The term'electronic publishing'can be used to referto the efforts of conventional publishers to adapt
their existing forms of hard-copy publishing to take advantage of the new opportunities offered by the
information infrastructure. This paper takes the view that this is an unnecessarily constraining
perspective, and should be avoided if the real potentials of the technology are to be f ulfilled.
A considerable proportion of the existing literature on the topic relates expressly to the publication ol
academic works (Harnad 1991 , 1995, Clarke 1994, Barry 1995b, Treloar 1 995, 1 996, Peek & Newby
1996, Bailey 1995-97), and particularly e-journals (Odlyzko 1995). Another segment relates to e-
zines (electronic magazines - Labowitz 1997). Many sources focus on particular technologies and
their application to electronic publishing, particularly the World-Wide Web (Zwass 1996). Another
relevant literature is that relating to digital libraries (D-lib 1997, Ketchpel 1997). For general references,
see also Varian (1997) and Kahin (1997).
This paper adopts an alternative approach. lt considers electronic publishing as a particular form of
the general class of electronic commerce systems.
Relevant concepts of electronic commerce are reviewed, in order to establish a working definition of
electronic publishing.Three models are then presented, which provide:
tr a structured description of the processes involved in the business of electronic publishing;
tr a taxonomy of business models whereby electronic publishing can be f unded; and
tr an interpretation of the maturation.path that is being followed by existing publishers, as
they convert from conventional to electronic publishing.
tr lmplications of the analysis are drawn, for both practitioners and researchers.
Electronic Commerce
This short, preliminary section provides an outline of key electronic commerce concepts, as a basis
for the subsequent analysis.
'Electronic commerce' (EC) is a general term for the conduct of business with the assistance of
telecommunications infrastructure, and of tools and services running over that inf rastructure.
EC's scope extends across all forms of business process within and between private sector
organisations (corporations, partnerships and sole traders), public sector agencies, convivial sector
organisations (associations and clubs) and individuals.
EC's most aclive area of application has to date been in procurement processes, where models of
both 'deliberative purchasing'also encompasses other business processes such as the design of
complex artefacts like buildings, ships and aircraft, and admintstrative mechanisms such as insurance
claims, and registration, licensing and court procedures.
32 / ELECTRONIC COMMERCE

The concept of 'marketspace' (Rayport & Sviokla 1994) has been adopted to distinguish the space,
within which EC is conducted, from the conventional, physical marketplaces in which traditional
commerce occurs. The marketspace is the virtual context in which buyers and sellers discover one
artother, and transact business. lt is the working environment that arises from the complex of
increasingly rich and mature telecommunications-based services and tools, and the underlying
info rmation i nf rastructu re.
EC can support most of the processes involved in the purchasing of physical goods and services,
with the exception of the actual delivery or performance: as the old hacker's joke goes, there just is
no u ubp (unix-to-unix-beer-protocol).
Digital goods and services (Negroponte 1995) are those whose purchase can be not only negotiated
and settled using the information infrastructure, but which can also delivered through the same
channels. Hence, for digital goods and services, the marketspace provides a context that can support
the entire procurement process.
Web Designing and Publishing: Form of Electronic Commerce
lntroduction
The term'electronic publishing'can be used to refer to the efforts of conventional publishers to adapt
their existing forms of hard-copy publishing to take advantage of the new opportunities offered by the
information infrastructure. This paper takes the view that this is an unnecessarily constraining
perspective, and should be avoided if the real potentials of the technology are to be fullilled.
A considerable proportion of the existing literature on the topic relates expressly to the publication of
academic works (Harnad 1991, 1995, Clarke 1994, Barry 1995b, Treloar 1995, 1996, Peek & Newby
1996, Bailey 1995-97), and particularly e-journals (Odlyzko 1995). Another segment relates to e-
zines (electronic magazines - Labowitz 1997). Many sources focus on particular technologies and
their application to electronic publishing, particularly the World-Wide Web (Zwass 1996). Another
relevant literature is that relating to digital libraries (D-lib 1997, Ketchpel 1997). For general references,
see also Varian (1997) and Kahin (1997).
This paper adopts an alternative approach. lt considers electronic publishing as a pariicular form of
the general class of electronic commerce systems.
iele,rant concepts of electronic commerce are reviewed, in order to establish a working def inition of
electronic publishing.Three models are then presented, which provide:
O a structured description of the processes involved in the business of electronic publishing;
tr a taxonomy of business models whereby electronic publishing can be funded; and
tr an interpretation of the maturation path that is being followed by existing publishers, as
they convert from conventional to electronic publishing.
lmplications of the analysis are drawn, for both practitioners and researchers.
Electronic Commerce
This short, preliminary section provides an outline of key electronic commerce concepts, as a basis
for the subsequent analysis.
'Electronic commerce' (EC) is a general term for the conduct of business with the assistance of
telecommunications infrastructure, and of tools and services running over that infrastructure.
EC's scope extends across all forms ol business process within and between private sector
organisations (corporations, partnerships and sole traders), public sector agencies, convivial sector
organisations (associations and clubs) and individuals.
 E-COMMERCE : CONVERGENCE OF TECHNOLOGIES / 33

EC's most active area of application has to date been in procurement processes, where models of
both'deliberative purchasing'also encompasses other business processes such as the design of
complex artefacts like buildings, ships and aircraft, and administrative mechanisms such as insurance
claims, and registration, licensing and court procedures.
The concept of 'marketspace' (Rayport & Sviokla 1994) has been adopted to distinguish the space,
within which EC is conducted, from the conventional, physical marketplaces in which traditional
commerce occurs. The marketspace is the virtual context in which buyers and sellers discover one
another, and transact business. lt is the working environmeni that arises from the complex of
increasingly rich and mature telecommunications-based services and tools, and the underlying
info rmation inf rastructu re.
EC can support most ol the processes involved in the purchasing of physical goods and services,
with the exception of the actual delivery or pedormance: as the old hacker's joke goes, there just is
no uubp (unix{o-unix-beer-protocol).
Digital goods and services (Negroponte 1995) are those whose purchase can be not only negotiated
and settled using the information infrastructure, but which can also delivered through the same
channels. Hence. for digital goods and services, the marketspace provides a context that can support
the entire procurement process.

Ouestions With Answers

Consumer electronics companies and PC manufacturers will converge into the industry.
a. information packaging
b. digitized content
c. information appliances
d. information transpori
2 One reason information industries have traditionally been defined in terms of lhe form of information
is because the government has actively constrained companies f rom entering other types of information
busrnesses.
a. true
b. false
With information technology moving toward electronics and digitization, the structural transformation
of the information industry is predicted to result in major inCustries instead of
a. two: six
b. three; five
c. seven; five
d. five; three
4 Which of the fotlowing factors will be crucial toward the luture of the information industry?
a. flexibility, speed, and productivity
b. alliances and partnering
c. global orientation
d. all of the above
5 Convergent technologies witl tead to worldwide end-to-end voice. data, fax, vicieo, and image services
and a global network that is both a transparent communications service and a platform for content-
filled or content-enhancecl services.
a. true
b false
6 The five functions of information are creation, display, storage, processing' and -........'...
a. digitizaticn
b. imagtng
c. transpori
d. convergence
34 / ELECTRONIC COMMERCE

7' lt was the dramatic, and iotally unexpected, growth in video-on-demand and interactive shopping that
created the demand for more bandwidth to the residential marketptace.
a. true
b. false
8. All companies in the industry will have to focus on customers, as they provide the volume and velocity
needed to achieve required price/performance ratios.
a. true
b. false
9. Today'q information industry is characterized by which of the foilowing?
a. inefficientinformationdistribution
b. adequate matching of information content with the needs of recipients
c. limited use of economic resources
d. all of the above
10. Of the three new form-based industries, the transpoft area is farthest along in moving to the new
model.
a. true
b. false

ANsWERs
l.c 2.a 3.b 4.d 5.a 6.c 7.b 8.a 9.a 10.b
 Cuprn 2
ELECTRO]VCS AI{D
COMM(I]VICATIOI{S

2.1 Electronics
The introduction of vacuum tubes at the beginning of the 20th century was the starting point of the
rapid growth of modern electronics.With vacuum tubes the manipulation of signals became possible,
which could not be done with the early telegraph and telephone circuit or with the early transmitters
using high-voltage sparks to create radio waves. For example, with vacuum tubes weak radio and
audio signals could be amplified, and audio signals, such as music or voice, could be superimposed
on radio waves.The development of a large variety of tubes designed for specialized functions made
possible the swift progress of radio communication technology before World War ll and the develop-
ment of early computers during and shortly after the war.
The transistor, invented in 1948, has now almost completely replaced the vacuum tube in most of its
applications. lncorporating an arrangement of senticonductor materials and electrical contacts, the
trahsistor provides the same functions as the vacuum tube but at reduced cost, weight, and power
consumption and with higher reliability. Subsequent advances in semiconductortechnology, in part
attributabte to the intensity of research associated with the space-exploration eflort, led to the devel-
opment of the integrated circuit. lntegrated circuits may contain hundreds of thousands of transis-
tors on a small piece of materialand allow the construction of complex electronic circuits, such as
those in microcomputers, audio and video equipment, and communications satellites.

2.2 Electronic Components

Electronic circuits consist of interconnections of electronic components. Components are classified
into two categories-active or passive. Passive elements never supply more energy than they absorb;
active elements can supply more energy than they absorb. Passive components include resistors,
capacitors, and inductors. Components considered active include batteries, generators, vacuum
tubes, and transistors.

2.2.1 Vacuum lbbes

A vacuum tube consists of an air-evacuated glass envelope that contains several metal electrodes.
A simple, two-element tube (diode) consists of a cathode and an anode that is connected to the
positive ierminal of a power supply. The cathode-a small metal tube heated by a filament-frees
plate). tf
electrons , which migrate to the anode-a metalcylinder around the cathode (also called the
positive
an alternating voltage is applied to the anode, electrons will only flow to the anode during the
half-cycle; during tne negative cycle of the alternating voltage, the anode repels the electrons, and
no cuirent passes tnrorigh the tube. Diodes connected in such a way that only the positive halt
 36 / ELECTRONIC COMMERCE

cycles of an alternating current (AC) are permitted to pass are called rectifier tubes; these are used
in the conversion of alternating current to direct current (DC) (see Electricity; Rectification). By
inserting a grid, consisting of a spiral of metalwire, between the cathode and thsanode and applying
a negative voltage to the grid, the flow of electrons can be controlled. When the grid is negative, it
repels electrons, and only a fraction of the electrons emitted by the cathode can reach the anode.
Such a tube, called a triode, can be used as an amplifier. Smallvariations in voltage at the grid, such
as can be produced by a radio or audio signal, will cause large variations in the flow of electrons f rom
the cathode to the anode and, hence, in the circuitry connected to the anode.

2.2.2 Transistors
Transistors are made from semiconductors.These are materials, such as silicon or germanium, that
are "doped" (have minute amounts of foreign elements added) so that either an abuidance or a lack
of free electrons exists. ln the former case, the semiconductor is called n-type, and in the latter
case, p-type. By combining n{ype and ptype materials, a diode can be produced. When this diode
is connected to a battery so that the p{ype material is positive and the ntype negative, electrons are
repelled from the negative battery terminal and pass unimpeded to the p-pggion, which lacks elec-
trons. With battery reversed, the electrons arriving in the p-material can pasi only with difficulty to
the n-material, which is already filled with free electrons, and the current is almosi zero.
The bipolar transislor was invented in 1 948 as a replacement for the triode vacuum tube. lt consists
of three layers of doped material, forming two p-n (bipolar) junctions with configurations of p-n-p or n-
p-n. One junction is connected to a battery so as to allow current flow (forwaid bias), and the other
junction has a battery connected in the opposite direction (reverse bias). tf the curreni in the lonruard-
biased junction is varied by the addition of a signal, the current in the reverse-biased junction of the
transistor will vary accordingly. The principle can be used to construct amplifiers in which a small
signal applied to the forward-biased junction causes a large change in current in the reverse-biased
junction.
Another type of transistor is the field-effect transistor (FET). Such a transistor operates on the
principle of repulsion or attraction of charges due to a superimposed electric field. Amplification of
current is accomplished in a manner similar to the grid control of a vacuum tube. Field-effect transis-
tors operate more efficiently than bipolar types, because a large signal can be controlled by a very
small amount of energy.

2.2.3 lntegratedCircuits
Most integrated circuits are small pieces, or "chips," of silicon, perhaps 2 to 4 sq mm (0.0g to 0.1 5 sq
in) long, in which transistors are fabricated. Photolithography enables the designerto create tens of
thousands of transistors on a single chip by proper placement of the many n-type and p{ype regions.

Fig. 2.1 : A part of microprocessor Fig. 2.2 : Compteted Microprocessor

circuit magnified havlng very large scale lntegrated clrcult
(vLsr)
 ELECTRONICS AND COMMUNICATIONS / 37

Topview t<;
F.l[TE
Nor gstet

ffil
AEF

1oo
connectihg pint 110*J I

Fig.2.3 :Typical comPonents used in a microprocessor circuit

Fig.2.4 : Size of a chip as compared to a ball pen

These are interconnected ths during fabrication to produce complex
special-purpose circuits. s ed monolithic because they are fabricated
on a single crystal of silicon. s space and power and are cheaperto manufacture
than anlquivalent circuit built by employing individual transistors'

2.2A Resistors
lf a battery is connected across a conducting material, a certain amount of current
willflow through
current is dlpendent on the voltage of the battery, on the dimensions
the material (see Resistance).This
of the material itself. Resistors with known resistance are
of the sampie, and on the conductivity
used for current control in electronic circuits.The resistors are made from
carbon mixtures, metal
two connecting wires attached. Variable resistors, with an adjustable
films, or resistance wire and have
to control volume on radios and television sets'
sliding contact arm, are often used

2.2.5 Capacitott
material (see capacitor).
capacitors consist of two metal plates that are separated by an insulating
 38 / ELECTRONIC COMMERCE
lf a battery is connected to both plates, an electric charge will flow for a short
time and accumulate
on each plate. lf the battery is disconnected, the capacitor retains the charge and the voltage
associated with it. Rapidly changing voltages, such as caused by an audio o, radio signal, produ-e
larger current llows to and from the plates; the capacitor then functions
for the
changing current. This effect can be used, for example, to separate an audio".or" radio
"onjrctor
signalfrom a
direct current in order to connect the output of one amplifier stage to the input of the neit
amplifier
stage.

2.2.6 lnductors
lnductors consist of a conducting wire wound into the form of a coil. When a current passes through
the coil, a magnetic field is set up around it that tends to oppose rapid changes in current intensity
(see lnduction). As a capacitor, an inductor can be used to distinguish betwlen rapidly and
slowly
changing signals. When an inductor is used in conjunction with a capacitor, the voltage in the inductor
reaches a maximal value for a specific frequency. This principle is used in a radio receiver, where a
specific frequency is selected by a variable capacitor.

2.2.7 Near Past llevelopments in Electronics

The development of integrated circuits has revolutionized the fields of communications, information
handling, and computing. lntegrated circuits reduce the size of devices and lower manufacturing and
system costs, while at the same time providing high speed and increased reliability. Digital watches,
hand-held computers, and electronic games are systems based on micropro"essors. O-ther develop-
ments include the digitalization of audio signals, where the frequency and amplitude of an audio
signal are coded digitally by appropriate sampling techniques, that is, techniques for measuring the
amplitude of the signal at very short intervals. Digitally recorded music shows a fidelity that is not
possible using direct-recording methods. Digital playback devices of this nature have already
en-
tered the home market. Digital storage could also form the basis of home video systems and may
significantly alter library storage systems, because much more information can bqstored on a disk
for replay on a television screen than can be contained in a book.
Medical electronics has progressed from computerized axial tomography, or the use of CAT or CT
scanners (see X Ray), to systems that can discriminate more and more of the organs of the human
body. Devices that can view blood vessels and the respiratory system have been developed as well.
Ultrahigh definition television also promises to substitute for many photographic processes, because
it eliminates the need for silver.
Today's research to increase the speed and capacity of computers concentrates mainly on the
improvement of integrated circuit technology and the development of even faster switching compo-
nents. Very-large-scale integrated (VLSI) circuits that contain several hundred thousand components
on a single chip have been developed. Very-high-speed computers are being developed in which
semiconductors may be replaced by superconducting circuits using Josephson junctions (see
Josephson Effect) and operating at temperatures near absolute zero.

2.3 Computers : The lnformation Ptocessor

The physical computer and its components are known as hardware. Computer hardware includes the
memory that stores data and instructions; the central processing unit (CPU) that carries out instructions;
the bus that connects the various computer components; the input devices,. such as a keyboard or
mouse, that allow the user to communicate with the computer; and the output devices, such as
printers and video display monitors, that enable the computer to present information to the user. The
programs that run the computer are called software. Software generally is designed to perform a
 ELECTRONICS AND COMMUNICATIONS / 39

particular type of task{or example, to control the arm of a robot to weld a car's body, to write a letter,
to draw a graph, or to direct the general operation of the computer.

2.3.1 The 0perating System

When a computer is turned on it searches for instructions in its memory. Usually, the first set of
these instructions is a special program called the operating system, which is the software that
makes the computer work. lt prompts the user (or other machines) for input and commands, reports
the results of these commands and other operations, stores and manages data, and controls the
sequence of the software and hardware actions. When the user requests that a program run, the
operating system loads the program in the computer's memory and runs the program. Popular oper-
such as Windows 95 and the Macintosh operating system, have a graphical user
"iing "yJt"rs,
inteiace (GUl)-that is, a display that uses tiny pictures, or icons, to represent various commands.To
execute these commands, the user clicks the mouse on the icon or presses a combination of
keys
on the keyboard.

2.3.2 Computer l{emory

To process information electronically, data are stored in a computer in the form of binary digits, or
bits, each having two possible representations (O or 1). lf a second bit is added to a single bit of
00,
information, the number of representations is doubled, resulting in four possible combinations:
01 , 10, or 1 1 . A third bit added to this two-bit representation again doubles the number of combina-
tions, resulting in eight possibilities: ooo,001,010,011,100, 101, 1'10, or 111. Each time a bit
is

added, the number of possible patterns is doubled. Eight bits is called a byte; a byte has 256
possible combinations of 0s and 1s.
infor
A byte is a usefulquantity in which to store es enough possible patterns
fo represent the entire in lower and numeric digits, punctuation
"tpn"U"t, graphics sy
marks, and severalcharacter-sized nglish characters such as d'
A kilobyte-
A byte also can be interpreted as a pittern that represents a number between 0 and 255-
characters; a gigabyte can
10oo bytes-can store lOOO characters;a megabyte can store 1 million
store 1 billion characters; and a terabyte can store 1 trillion characters'
read or
The physical memory of a computer is either random access memory (RAM), which can be
read the computer
changed by the user or computer, or read-only memory (ROM), which can be by
in tiny
but not altered. One way to store memory is within the circuitry of the computer, usually
these computer chips
computer chips that holi millions of bytes of information. The memory within
on external storage de-
is RAV. Memory also can be stored outside the circuitry of the computer
vices, such as magnetic floppy disks, which can store about 2 megabytes of information; hard
(compact discs),
drives, which can store thousahds of megabytes of information; and CD-ROMs
store nearly as much
which can store up to 630 megabytes of infoimation. A single CD-ROM can
information as 700 floppy disks can.

2.t.3 The Bus

components in a
The bus is usually a flat cable with numerous parallel wires- The bus enables the
a time are sent
computer, such ai the CPU nicate. Typically, several bits at
along the bus. For example, rallel wires, allows the simultaneous transmis-
sion-of 16 bits (2 bytes) of in ce to another'

2.3.4 lnput Devices

with the
lnput devices, such as a keyboard or mouse, permit the computer user to communicate
 40 / ELECTRONIC COMMERCE

computer. Other input devices include a joystick, a rodlike device often used by game players; a
scanner, which converts images such as photographs into binary inforrnation that the computer can
manipulate; a light pen, which can draw on, or select objects from, a computer's video display by
pressing the pen against the display's surface; a touch panel, which senses the placement of a
user's finger;and a microphone, used to gather sound information.
The Central Processing Unit (CPU) lnformation from an input device or memory is communicated via
the bus to the CPU, which is the part of the computer that translates commands and runs programs.
The CPU is a microprocessor chip{hat is, a single piece of silicon containing millions of electrical
components. lnformation is stored in a CPU memory location called a register. Registers can be
thought of as the CPU's tiny scratchpad, temporarily storing instructions or data. When a program is
run, one register called the program counter keeps track of which program instruction comes next.
The CPU's control unit coordinates and times the CPU's functions, and it retrieves the next instruc-
tion from memory.
ln a typical sequence, the CPU locates the next instruction in the appropriate memory device. The
instruction then travels along the bus f rom the computer's memory to the CPU, where it is stored in
a special instruction register. Meanwhile, the program counter is incremented to prepare for the next
instruction. The current instruction is analyzed by a decoder, which determines what the instruction
will do. Any data the instruction needs are retrieved via the bus and placed in the CPU's registers.
The CPU executes the instruction, and the results are stored in another register or copied to Jpecific
memory locations.

2.3-S Output Devices

Once the CPU has executed the program instructio.n, the program may request that information be
communicated to an output device, such as a video display monitor or a flat liquid crystal display.
Other output devices are printers, overhead projectors, videocassette recorders (VCRs), and speakeri.

2.1.6 Programminglanguages
Programming languages contain the series of commands that create software. ln g6neral, a lan-
guage that is encoded in binary numbers or a language similar to binary numbers that a computer's
hardware understands is understood more quickly by the computer. A program written in this type of
language also runs faster. Languages that use words or other commands that reflect how humans
think are easier for programmers to use, but they are slower because the language must be trans-
lated first so the computer can understand it.
(1) Machine Language
Computer programs that can be run by a computer's operating system are called executables. An
executable program is a sequence of extremely simple instructions known as machine code. These
instructions are specific to the individual computer's CPU and associated hardware; for example,
lntel Pentium and Power PC microprocessor chips each have different machine languages and
require different sets of codes to perform the same task. Machine code instructions are few in
nurhber (roughly 20 to 200, depending on the computer and the CPU). Typical instructions are for
copying data f rom a memory location or for adding the contents of two memory locations (usually
registers in the CPU). Machine code instructions are binary-that is, sequences of bits (Os and 1s).
Because these numbers are not understood easily by humans, computer instructions usually are not
written in machine code.
(21 Assembly Language
Assembly language uses commands that are easier for programmers to understand than are machine-
 ELECTRONICS AND COMMUNICATIONS / 41
language commands. Each machine language instruction has an equivalent command in assembly
language. For example, in assembly language, the statement "MOV A, B" instructs the computer to
copy data f rom one location to another. The same instruction in machine code is a string of 16 Os and
1s. Once an assembly-language program is written, it is converted to a machine-language program
by another program called an assembler. Assembly language is fast and powerful because of its
correspondence with machine language. lt is still difficult to use, however, because assembly-language
instructions are a series of abstract codes. ln addition, different CPUs use different machine languages
and therefore require different assembly languages. Assembly language is sometimes inserted into
a high-level language program to carry out specific hardware tasks or to speed up a high-level
program.
(3) High-LevelLanguages
High-level languages were developed because of the difficulty of programming assembly languages.
High-level languages are easier to use than machine and assembly languages because their com-
mands resemble natural human language. ln addition, these languages are not CPU-specific. ln-
stead, they contain general commands that work on different CPUs. For example, a programmer
writing in the high-level Pascal programming language who wants to display a greeting need include
only the following command:
*Write ( rHello, e-Commerce User! I ),.
This command directs the compute/s CPU to display the greeting, and it will work no matter what
type of CPU the computer uses. Like assembly language instructions, high-level languages also
must be translated, but a compiler is used. A compiler turns a high-level program into a CPU-specific
machine language. For example, a programmer may write a program in a high-level language such as
C and then prepare it for different machines, such as a Cray Y-MP supercomputer or a personal
computer, using compilers designed for those machines. This speeds the programmer's task and
makes the software more portable to different users and machines.
American naval officer and mathematician Grace Murray Hopper helped develop the first commerbially
available high-level software language, FLOW-MATIC, in 1957. Hopper is credited for inventing the
term bug, which indicates a computer malfunction; in 1945 she discovered a hardware failure in the
Mark ll computer caused by a moth trapped between its mechanical relays.
From 1954 to 1958 American computer scientist Jim Backus of lnternational Business Machines,
lnc. (lBM) developed FORTRAN, an acronym for FORmula TRANslation. lt became a standard
programming language because it can process mathematicalformulas. FORTRAN and its variations
are still in use today.
Beginner's All-purpose Symbolic lnstruction Code, or BASIC, was developed by American math-
ematician John Kemeny and Hungarian-American mathematician Thomas Kurtz at Dartmouth Col-
lege in 1 964. The language was easier to learn than its predecessors and became popular due to its
friendly, interactive nature and its inclusion on early personal computers (PCs). Unlike other lan-
guages that require that all their instructions be translated into machine code first, BASIC is inter-
preted-that is, it is turned into machine language line by line as the program runs. BASIC commands
typify high-level languages because of their simplicity and their closeness to natural human lan-
guage. For example, a program that divides a number in half can be written as
10 INPUT IIENTER A NUMBER,I' X
20 l=X/2
30 PRrNT ilHALF OF THAT NUMBER rS, r' Y
The numbers that precede each line are chosen by the programmer to indicate the sequence of the
 42 / ELECTRONIC COMMERCE
commands'The first line prints "ENTER A NUMBER" on the computer
screen followed by a question
mark to prompt the user to type in the number labeled "X." ln
the next line, that number is divided by
two, and in the third line, the result of the operation is displayed
on the computer screen.
otherhigh-level languages in use today include C, Ada, pascal, LlSp, prolog,
Java' New compilers are being developed, and many features
coBol, HTML, and
available in one language are being
made available in others.
(4) Object-Oriented programming Languages
object-oriented programming (ooP) languages like c++ are based
on traditional high-levet languages,
but they enable a programmer to think in terms of collections of
cooperating objects instead of lists
of commands. objects, such as a circle, have properties such
as the radius of the circle and the
inherit features from other
tures such as right angles
es the programmer's task,

2.4 Types of Computers: Itigital and Analog

computers can be eirher digitaror anarog. Digitar
puters that manipu-
late binary numbers (Os or 1s), which iepresen
or off by electrical
current. Analog refers to numerical values that h
O and 1 are analog
numbers, but so is 1.5 or a number like d (approximr
le, consider a desk
lamp' lf it has a simple on/off switch, then ii is'digital, because the lamp
either produces tight at a
given moment or it does not. lf a dimmer replaies the on/off
switch, then the lamp is analog,
because the amount of light can vary continuously from on to off
and all intensities
in between.
Analog computer systems were the first type to be
20th century was the slide rule. lt performs calcu
inside a rulerlike holder. Because the sliding is con
exact value, the slide rule is analog. New interes
particUlarly in areas such as neural networks th
modern computers, however, are digital machines w
for example, the o or 1 , or on or off of bits. These bits can be
combined to denote information such
as numbers, letters, graphics, and program instructions.

2.5 Range of Computer Ability

Computers exist in a wide range of sizes and power. The smallest are
embedded within the circuitry
of appliances, such as televisions and wrist watches.These computers
are typically preprogrammed
for a specific task, such as tuning to a particular television frequency
or keeping accurate time.
Programmable computers vary enormously in thei
size.The smallest of these computers Can be
assistants (PDAs).They are used as notepads,
with a cellular phone, they can connect t,o wor
regardless of location.
Laptop computers and Desktop PCs are typically used in businesses
and at home to communicate
on computer networks, for word processing, to track finances, and
to play games. They have large
amounts of internal memory to store hundreds of programs and documents.They
are equipped with
a keyboard; a mouse, trackball, or other pointing Oeviie; and video
a display monitor or liquid crystal
 ELECTRONICS AND COMMUNICATIONS / 43

display (LCD)to display information. Laptop computers usually have similar hardware and software
as pCs, but they ur" ror" compact and have flat, lightweight LCDs instead of video display monitors.
workstations are similar to personal computers but have greater memory and more extensive
to
mathematical abilities, and they are connected to other workstations or personal computers
that
exchange data. They are typicilly found in scientific, industrial, and business environments
require high levels of computational abilities.
Mainframe computershave more memory, speed, and capabilities than workstations and are usually
and
shared by multiple users through a series of interconnected computers.They control businesses
industrial facilities and are used lor scientific research. The most powerful mainframe computers,
used to
called supercomputers, process complex and time-consuming calculations, such as those
and the
create weather predictrons. They are used by the largest businesses, scientif ic institutions,
military. Some supercomputers have many sets of CPUs. These computers break a
task into small
pro""sses portion the task to increase overall speed and efficiency. Such
pieceq and each bpU a of
computers are called parallel processors.

2.6 Uses of ComPuters

people use computers in a wide variety of ways. ln business, computers track inventories with bar
ln
codes and scanners, check the credii status of customers, and transfer funds electronrcally'
control the indoor
homes, tiny computers embedded in the electro ric circuitry of most appliances
recorders on and
temperature, operate home security systems, tell the time, and turn videocassette
ofl.
gas nrileage. Computers also
Computers in automobiles regulate the flow of fuel, thereby increasing
from a digitally
enteitain, creating digitized sound on stereo systems or computer-animated features
level of education, from
encoded laser disc. Computer programs, or applications, exist to aid every
calculus. Educators use
programs that teach simple addition or sentence construction to advanced
projection units, they can
coriputers to track grades and prepare notes; with computer-controlled
add graphics, sound, and animation to their lectures'
display
Computers are used extensively in scientific research to solve mathematical'problems,
such as testing the air
complicated data, or model systems that are too costly or impracticalto build,
in sophisticated
flow around the next generation of space shuttles. The military employs computers
to ericode and unscramble messages, and to keep track of
personnel and supplies'
communications

2-7 ltigital TechnologY

manipulate numbers'
DigitalTechnology includes study and development of devices that store and
for a computer to process and then
Digital devices can translat *oid" and pictures into numbers
"
translate the numbers back into pictures or words'
By contrast, analog technology is the study of
bers. For example, an analog watch contains
steady motion of its hands. Although numbers
nism does not store or use those numbers to
stores and manipulates numbers representing t
watch.
of these digits' Every digit in
Humans write numbers using ten digits. O through 9, and combinations
store numbers using only two
a decimal number 1."pr"."ni" powe-rs of ten. Modern digital devices
Every digit in a binary number
digits, 1 and 0, called bits. such numbers are called binary numbers'
 44 I ELECTRONIC COMMERCE
represents a power of two. For example, tn the
binary number 101 . the 1 at the right represents
1 x 20:
*,2.,:?nd the_1'to thei",i"ti',"p,esenrs 1 x 22 (see
R:",t"*l^f^Til1=lT_?Tl
systems).Thedecimarequi arentof 1o.r rs(1 x 2,)+(ox21)+rr'""r,iill'_lr:1-]"r:
_? Number

2.8 Processing Digital lnformation

ts that can turn on and off exlremely rapidly.
n a circuit ls off, lt represents a value of O rn
matical operations by iurning these switches

pid rate at which a computer can manipulate

computers. All instructions that direct the
uters are first converted into binary numbers
urckly.
ed to perform mathematlcal operations as fast as possible.
Devices that
g complete multiple operations simultaneously.
Fipelined devices behave
that at any given time, severar operations in various
.tug". are being
Computerst into brnary numbers in a process called
encod
digital
letter wrth its numericai positron (1-26) in
the alphabet
into
^, .- , binai.y equivalents. A sound can be
encoded as a series of numbers that measure its pitch and voiume at each instant
in time. An image
can be encoded as a sequence of numbers that represent
the color and brightness of each portion of
the picture' The computer is able to decode information
oy conveiting the numbers back into letters,
sounds, or images.
Digitaldevices can process encoded information i
nds, and chec
aldevice also
epresenting th
on, and it save
Progress n by the human ne ate. Acjvanced compression
technolog store, and transmi nts of information efficiently.
Digitally e es, and video can her on magnetic media and
compact disks and broadcast over cable to homes and
o cellular phones.
computer, machine that performs tasks, such as mathematical
calculations or electronic
s called a program. programs usually reside
the computer's electronics, and the
Irogram
ideo display monitors or printers. Computers
ability, accuracy, and speed.
2.9 Digital logic
Digital logic is a rational process rue,,oi. ,,false,, decisions based on the rules of
Boolean algebra. "True" can be and ,,false,, by a O, and in logic circuits the
numerals appear as signals of tw Logic circuits are used to make specific true-
false decisions based on the presence of murtipl e-fa]se signals at the inputs
 ELECTRONICS AND COMMUNICATIONS / 45

The signals may be generated by mechanical switches or by solid-state transducers. Once the input
signal has been accepted and conditioned (to remove unwanted elecirical signals, or "noise"), it is
processed by the digital logic circuits.The various families of digitai logic devices, usually integrated
circuits, perform a variety of logic functions through logrc gates, including "OR;'"ANDJ'and "NOT"'
and combinations of these (such as "NOR." which includes both OR and NOT). One widely used logic
family is the transrstor-transistor logic (TTL)" Another family is the complementary metal oxide semi-
condlctor logic (CMOS), which performs srmilar functions at very low power levels bui at slightly
lower operatrng speeds. Several other, less popular tamilies of logic circuits exist, including the
currently obsolete resistor-transistor logic (RTL) and the emitter coupled logic (ELC), the latter used
for very-high-speed systems.
The elemental blocks in a logrc device are called digital logic gates. An AND gate has two or more
inputs and a single output. The output of an AND gate is true only if all the inputs are true. An OR
gate has two or more inputs and a single output. The output of an OR gate is true if any one of the
Inputs is true and is false if all of the inputs are false. An INVERTER has a single input and a single
output terminal and can change a true signal to a false signal, thus performing the NOT function.
More complicated logic circurts are built up from elementary gates. They include flip{lops (binary
switches), counters, comparators, adders, a.nd more complex combinations.
To perform a desired overallfunction, large numbers of logtc elemenls may be connected in complex
circuits. ln some cases microprocessors are utilized to perform many of the switching and timing
functions of the individuai logic elements (see Micrcprocessor). The processors are specifically
programmed with individual inslructions to perform a given task or tasks. An advantage of micro-
proJ"..or. is that they make possible the performance ol different logrc functions, depending on the
program instructions that are stored. A disadvantage of microprocessors is that normally they oper-
ateln a sequential mode, which may be too slow for some applications. ln these cases specifically
designed logic circuits are used'

2.1 0 Communications
More and more businesses and other governmental agencies are using PCs and computer in networks
for basic business applications.The small computer is providing an economical method for distributing
computing needs within am organization. lnstead of using a computer terminal connected to the
main computer system for performing these simple computing functions, a computer network consisting
of small computers in conlunction *ith larger central system with data base inforrnation is'becorning
"
a more feasible alternative.
ln cases where the officesiplants of an organisation are spread over the large geographical area, it
has been felt that computerisation of officeslplants activities in isolation does not step up efficiency.
ln such cases reliable data communication has to go hand with computerisation to achieve the
desired efl iciency standards.
The clevelopment of computer systems has been combined with improved communication
facilities
be
which extend the power ol the computer beyond the computer room, and a!low system benefits to
more widely available. This combination allows computer facilities at remote sites, whilst
preserving
is the "dialing-
on one site the expertise needed to operate the whole system.The simplest example
up,, on the telephone network to connect a remote terminal with the computer and
all its facilities.

Fig. Z.1is an example of a combination of computers and a communications

network for a large f irm
wiih numerous branch offices and several factories. Each of the factories could have its own me-
dium-sized computer, linked to terminals within the lactory and further terminals at adjacent branch
offices. Communications links could also exist between at adjacent branch offices. Communications
46 / ELECTRONIC COMMERCE
links could also exist between these machines and a larger machine at the corporate headquarters.
The individualterminals would be used for the collection and dissemination of the user data, with the
"satellite" computer collating and editing this data and carrying out much of the total data processing.
Major computation and corporate matters would be passed to and handled by the large machine at
headquarters.
A Backbone Network
Backbone bus

Outside
Modem world

Tape device

Prini server

Network server File server

Star
LAN PC Hard disk Printer

To PBX
network

Fig.2.1 : Combination Computers and Communication

 ELECTRONICS AND COMMUNICATIONS / 47

This blend of computers and communications is now taken for granted and as industry-standard in a
rapidly growing number of business organisations. Even the most unsophisticated user may un-
t<nowingty be using very complex systems. For example, a small business may have a fairly simple
terminai which is connected, via telephone, to a local computer service bureau, in orderto use one of
the facilities offered by that bureau.
Not apparent to user, however, the local call may link to a system a very long way from home (see
Fig.2,1). The first connection is to the local small communications computer. This concentrates the
da1a, along with that from other local users, and passes it to a larger computer in the capital. Here,
because ol the particular services being used, it is passed via a communications satellite in orbit
above the ocean, to the service company's main computer centre in the United States. The results
come back over the same links, giving the user the impression that the bureau is just next door'
This development was mobilised due to developments in "personal/office computing" (e.9. word-
processing, desk-top microcomputers, business minicomputers) coupled with moves towards digital
communications, as exemplified by digitaltelephone exchanges, digitalfacsimile, etc. Opportunities
are now being seized to take advantage of the economies of scale and added cost-efficiency offered
by combining services. The convergence of voice, word processing and message systems is being
cipitalised on to the advantage of the user. The results are that a business manager will no longer
have to turn separately to the :
o lnformation technology department for computer services
o PABX for telephones
c Typing pool for document preparation
D Mail room for document transmission'
The first step towards understanding communications is to look at computer data at its must base
level. As all of .us know computer and computer device manage store and exchange data using
electronic pulses or digital signals, that come in two varieties, the binary digit'0' indicates the
absence 1"bFf"; and't;indicaie ("ON") the presence of electric current. A series of ONs and OFFs
in various combinations can be sent on the communication channels to represent any character.
Every character (letter, numeral, symbol, or punctuation mark) is composed of a group of bits called
codes. To avoid incompatibility beiween systems, the computer industry has created a number of
standards that establish relationships between bit combinations and their corresponding characters.
The most widely used codes are the American Standards Code for lnformation lnterchange ((ASCll))
and the IBM standard, Extended Binary Coded Decimal lnterchange Code (EBCDIC).
To ensure successfultransmission of data between two points, the sender and receivers should use
the same code, or they can use translates to aid in communication. Translation are data communica-
tion software, which translate the sender's data into the codes receiver understand.
To ensure successfultransmission of data between two points, the sender and receivers should
use
the same code, or they can use translates to aid in communication. Translation are data communica-
tion software, which translate the sender's data into the codes receiver understand.
There are several manufacturers of computer hardware and software across the globe. For successful
data communication these products should be compatibles with each other or they should conform
to certain set of rules so that any one can use them. These set of rules is known as communication
protocols or communication standard.
ln other words protocols are technical customs or guide lines that govern the exchange of signal
transmission and reception between equipments'
 48 / ELECTRONTC COMMERCE

Each protocolspecifies the exact order in which signals will be transferred, what signalwill indicate
that the opposite device has completed its transfei, and so forth. Both hardwar" anO
software are
designed to handle specific protocols.
Communication protocols are usually defined and approved by some international body
such as lSO,
CCITT or IEEE' At times protocols defined by certain manlfacturer of comput"r. t; networking
products become so widely accepted, that they be :ome'defacto/ standard
even tirough these protocols
may not have approval of any standardisation body. Some ol the functions thal communication
protocol regulates are:
A Controlof information transfer
D Structure and formats of data
D Error recoveries
D Retransmissioncontrol
O lnterfaces management.
Only communication devices using same protocols can communicate with each other.
To make sure that the bits (or characters) are securely transmitted through the channel or line, we
need a link level protocol between two computers. Some of the main functions to be performed by
such a link level protocol are:
O Assuring the data to be transmitted is split into data blocks with beginning and ending
markers. This is called framing and the transmission block is called alr"re.
D Achieving data transparency. This allows a link to treat a bit pattern, including normally
restricted control characters, just as pure data.
tr Controlling the flow of data across the link. lt is essential not to transmit bits faster. Than
they can be received at the other end. Otherwise, the receiver overflows and the data is
overrun, or all buffering capacity is used up, leading to loss of data.
o Controlling errors. This involves detection of errors using some kind of redundancy check.
It also involves acknowledgement or correctly received messages and requests for
retransmission of faulty messages.
There are basically two classes of link protocols.They are, Binary SYNchronous protocols (BlSNyC)
and High Level Data Link Control (HDLC) protocols. BISYNC is based on character control, whereas
HDLC is a bit oriented protocol. ln fact, HDLC is widely used in most link protocols of computers.
Computing technology today allows people to create stunning graphics, the likes we have seen in
Jurassic Park, and The Abyss, and provide impressive digitized sound systems such as the Talk
album by the Classic Rock band of the seventies Yes. Yet, the most amazing technologies are really
those available to the common household and businesses, Networking technology is racing towards
the future in instant global communication.There are now proposals for global coverage of data and
telephony communication via satellites f rom various organizations but before we can tilk to the boss
through video telephones on a regular basis like George Jetson, we first have to understand the
current capabilities of global networks and computing technology.
For businesses, large and smallalike, computing and networking technology is quickly becoming an
absolute necessity. Computers are already populating many offices by providing tools such as word
processors, databases, and spreadsheets. Towards the late 8O's, Local Area Networks (LANs) of
computers became a much demanded utility as businesses tried to connect the various depart-
ments of their organization together. Now into the 9O's, networking on a much larger scale, nation-
 ELECTRONICS AND COMMUNICATIONS / 49

wide and even global, is becoming the need.

Why is global networking so important? Some businesses have discovered that their area of service
naturally extends to a global scale and wish to contact a whole new base clients. Others have found
peer organizations and people involved in similar work to share and communicate new ideas for
various aspects of their business. Still others have found a whole new way of advertising their
company's services or products. Global networks such as the lnternet have also become a cost-
effective and quicker way to transfer important documents to remote offices than courier services or
even fax.

2.t t llata Communications

Data communications are used to link the systems both locally and throughout the networks. ln a
sense, data communications is something of a misnomer, since analogue transmission is being
changed to digital transmission, and it is thus possible to transmit information in all its forms with
equal facility. The forms include speech, numerical information, text and images, whether in fax or
video format.
A communication or telecommunication process consists of three components:
tr Source device
tr Destination device
tr A medium actively engaged in exchange of data.
Sending a message involves a devise at source end and another devise at destination end.The
message is communicated using a communication medium. To be effective one more processed
added of getting feedback from the remote (destination) station. As such there are four essential
components (Fig. 2.6) of any communication system.
a. The sender creates the message.
b. The medium carries the message.
c. The receiver receives the message.
d. Feedback verifies the message.

The SENDOR
creates the

The MEDIUM I FEEDBACK

creates lhe
message
T verilies the
T message
I

I
I

Fig.2.6 :The Essential four components of communication process

The field of data communications links the computer and the telecommunications industries.
Computers are digital in nature and transfer information internally via parallel connections.Traditionally
telecommunications have been an analog process, and data have been transmitted in a serialfashion.
50 / ELECTRONIC COMMERCE

Data has a wide definition and includes multimedia objects may range from a simple text retrieval to
intricate voice-annotated changes in a complex 3-D visualization model of particle physics. The
range of bandwidth involved is truly staggeririg. A typical database text retrieval requires about 1
Kbps, whereas a complex visualization needs an 800 Mbps throughout, which is almost a million
times greater.
ln between those extremes there is a whole gamut of multimedia objects such as text, graphics,,
audio, and video, each of which requires a different amount of bandwidth for timely transmission
within computers and across the netWorks depending on the type of application of which they are a
part. The most demanding of those multimedia objects are high-quality videos with synchronized
audio that must be transmitted interactively and in real time. As a result, audio and video transmis-
sions are practical only when compression schemes are incorporated within the transmission proc-
ESS.

This variety of multimedia objects must be transported over private and public networks and data
transmission facilities consisting of various types of analog and digital links whose configurations
offer different bandwidth capabilities. These may range from 1O Kbps of the traditional telephone
lines all the way to the 1.2- Gbps, capacity of high-speed ATM cell relay services.
Bandwidth capacities also depend on the nature of connecting media, which may range from copper
wire, througI coaxial cable and optical fiber to photonic networks of the future. Switching and inter-
facing mechanisms present varying bandwidth capacities that must also be taken into account in
multimedia networking design.
Data communications includes data transmission, but also includes the control, checking and move-
ment handling of information . ln computer systems, it includes:
tr The physicaltransmission circuits and networks
tr The hardware and software which support the data communication functions
D Procedures for detecting and recovering f rom errors
tr Rules and protocols to ensure the disciplined (and therefore comprehensible) exchange of
information.

2.12 Data Transmission

Data transmission is the movement of information using some form of representation appropriate to
the transmission medium. This will include:
D Electrical signals carried along a conductor
tr Opticalsignals along an opticalfibre
tr Electro-magnetic waves, eg radio, or infra-red signals transmitted through space.
With the small computer now available in many homes and offices, there is often a need to share
data and programs and other in{ormation between the various computers. Consider a company
manager or planning officer who is preparing a budget. lt could be for a particular project, work
center, company department, or even the consolidated company budget. There are now several
inexpensive programs available for PCs which are designed specif ically for this activity. ln perform-
ing these planning activities, information on such items as salaries, equipment,etc. is usually needed.
The user may have this information at hand, or it may be in a data base administered by another,
perhaps larger, compuier, then the planner will need to access this data base.
The fact that the data base computer needs to be accessed via an information channel between the
computers provides the basrs for a computer network. We shall study this in chapter 2. The planner
 ELECTRONICS AND COMMUNICATIONS / 51

would access the computer with the needed data base through the network by using the appropriate
network and systems software, and request that the desired information be transferred to a f ile within
his/her own system. Any additional information needed from another data base for completing this
budget could be obtained in a similar manner.When the planner's finished, a hard copy of the budget
.ouh b" printed and mailed,and /or the budget file could be sent through a network to another
system for review by other personnel'
Suppose a manager had to Write several letters to clients. lnstead of dictating these letters to a
,""i"t"ry as has been done in the past, he/she would use the same PC and a word processing
program for writing the main body of each letter. These letters are then sent via the network to a
similar small computer on the secretary's desk for completion. The secretary uses the same or
a
similar word processing program to perform any needed editing and to complete each letter by adding
the p[roper address. n'"opy of each letter suitable for mailing is then obtained by using a
letter
qu"iity printer located in yet anothe t areaand which is shared by other users' The secretary would
quality printer, once
send ihe finished letter to the computer which is dedicated to serving the letter
quality printer, insert the
again using the same network.Then the secretary would walk to the letter
afpropriate letterhead paper and direct this third computer to print each letter'
personnel in other
Now suppose that the manager has some technical memorandums to be sent to
company divisions in other physical locations. lnstead of actually printing a hard copy and mailing it,
by network directly to the computer of the division secretaries where
the memorandum could be sent
possible because the company's cornputer network consists not only the
it would be printed. This is
computers in the same UuitOing local
( network), but also those at remote sits. These sites may be
different countries. This type of communications is often
in the same town, different towns, or even
described
referred to as electronic mail. The business office using the equipment and methods
above is often referred to as an electronic office'

2.13 Types of Signals in Communication

as either analog or
The signals that pass along physicalwires and wireless media can be classified
digital. (Fig.2.3)
O Analog Signals
of numerous
Analog signals carry data as continuous waves. For instance, the human voice consists
ol sound waves. All signals that travel over these older
complex inflections that are combinations
telephone lines are in analog form.
Any analogue is a system of representing real-world quantities by
electrical
voliage thir models the quantiiies. For example, in a calculation ted by 1
volt, i metres by 2 volts and so on. While analogue computers enj ll modern
computers are digital.
O Digital Signals
1-bit of a data can be
Digital signals carry data as on/off or high/low electrical signals. Thus, the
of both data and
represented as an on (high) signal; the O-bit, an off signed for digitaltransmission
voice.

2.t5.1 Analogue Yelsus Digital Communication

The difference between analog and digital signals is shown in Figure 2'7
 52 / ELECTRONIC COMMERCE

<_1
ttttttttlt
tllttttttt
llrl_Jl_Jl_J,<o
Fig.2.7:The difference between analog and digital signals.

The dispute about the relative merits

1970, when the problem that it required
incontrovertible way. The solution was
sands to millions of electronic compon i

2.14 [haracteristics of Electrical Waves

strength of the signal
imilar location on the
equency of the signal
interval. These three

Points A1 , &, A,, . ...... ...Arare suil to be in the same pHASE

AMPLITUDE

--i Time

FREOUENCY = numbers or times repeated

in unit interval of time
= S in this tigure

Fig. 2.8 : showing sine-wave and depicting Ampritude, phase

and Freguency
lf the basic shape of a wave form is known, a few measurement
at selected time intervals (in other
 ELECTRONICS AND COMMUNICATIONS / 53
For a
words, a sampling) provide the receiving instrument with enough data to identify the signals.
and a maximum frequency required to deline a
provides a different signalto encode a state. For
represented by a signal having one amplitude,
n be represented by a signal having the same

2.t4.1. Wavelength of a Signal

ints in the adjacent cycles of a waveform signal
the illustration. ln wireless systems. this length is
ters. ln the case of inlrared, visible light, ultravio-
ften specified in nanometers (units ol 10-9 meter)

signal, the shorter the

Wavelength is inversely related to frequency.The higher the frequency of the
w is the wavelength as
waveleng-th. lf f is the iiLqr"n"V of tne iignaias mealured in megahertz, and
gOOlt a-nd conversely f = 300/w' Wavelength is sometimes repre-
measured in meters, then w =
sented by the Greek letter lambda.

2.14.2 Frequency of the Transmission

is the number of complete cycles per second in
recjuency is the hertz, abbreviated Hz. ll acurrent
cy is t H2; 60 cycles per second equals 60 Hz (the

(1,000's) of cycles per

Larger units of frequency include the kilohertz (kHz) representing thousands
second, the
representing billions of cycles per second'
used; 1THI= 1,000, per second' Note that
owers of 10, in cont for multiples of bytes'

Fig.2.9Frequency spectrum ol various electronic signals

:
writing, new personal computers
computer clock speed is generally specified in megahertz. As of this
 54 / ELECTRONIC COMMERCE
have clock speeds ranging from about 166 MHz to
more than 3oo MHz. within a few years, we will
probably see personar computers whose crock
speeJ; il;;p,=;sed in siqahertz.
l-requency is important in wireless communicatiors, where
the frequency of a signal is mathematically
related to the wavelength. lf f is the frequency of an
electior"grJii" field in free space as measured
and w is the wavetength as measured in mete"rs,-tlen
lbil;:"n"rtz, w = 300/f and conversely f =

The frequency spectrum of ail types of erectronic signars

are shown in Fig. 2.g.
2.15 Data Transmission 0uality Factors
2.15.1 lnformation Carrying Capacity
The amount of be carried on a communications channel between any
points'The disti two
ation and data is a subtle one, so the terms'information carry-
ing capacity an (or rate)'are used interchangeably.
(1) The Speed of communication : Bit Rate
The handling of comput erized data may occur at many speeds.
For some users, dialed service is
adequate, while others might need satellites to teleprocess
data between continents. The speed of
each codtmunications media is measured by the number
of bits transmitted per second, or the BpS
rate' For ease of identifications, three classes of speeds or bandwidths
have been established as
detailed in section 2.15'2' Each bandwidth defines a category
of Bps rate within which that service
is available.
The amount of data that a computer network can transmit is
called the bandwidth of the network and
is usually measured in Kil per second (Mbps). A bit_the smallest
unit of information that co
of two values, either O or 1. A Kilobit is
one thousand bits' while ransportation of information between
routers generally uses communication lines dedicated to this function,
with capacities currenly
rangingfrom64KbpsuptoasmuchasseveralhundredMbps.
The speed at which information can be transmitted across the
lnternet depends on the lofuest infor-
mation transporting capacity along the route and the number of people
using that route at any given
time' A narrow bandwidth somewhere along the route acts as
a botflenecr tJdata transport, and the
more people using the line, the less informltion each of them
can transport at any one time.
(21 Signaling Rate (baud)The Baud Rate
The signaling rate of a line is measured in bauds. lt's the switching
speed, or number of transitions
(voltage or f requency changes) that are made per second.
The speed at which data is transmitted is referred to as baud. Baud
is commonly identified as the
number of bits d over a communication line. Bald rates vary. The
most common rs are 3OO baud and 1p0O baud. A 2,400_baud

sisnarof *s str
modem is avai

used only in specialized data transmission.

.Tf:.litr""r""1'#"Tl:',RTffiJl,x.":T;s3*:
(3) Difference between BpS and Baud
ual to bits per second; for exampre, 300 baud is equar to 3oo
bps.
e to represent more than one bit per second. For exampre, the
bps at 600 baud. Thus it is commonry (and erroneousry) used to
 ELECTRONICS AND COMMUNICATIONS / 55

specify bits per second for modem speed; for example , 12OO baud means 1200 bps'

Bir
Value

Baud 112 34 567

Number *lon" +

Bit
Va ue

Baud
Number

Bit
Value

Baud
*
1

Number I on, sign?r p"..ioo l.-

Fig.2.10 :The relationship between bps and baud
Shannon,s law concerning a communications channel provides the formula that relates bandwidth
in
Hertz,to information carrying capacity in bit per second. Formally:

e:B1og2(1+S)
where e (lCC), B is the bandwidth , and S is tbe signal-to-noise
is the information carrying capacity
ratio. This expression shows that the ICC is proportional to the bandwidth , but is not identical
to it.

2.t5.2 Grade of Communication Channels and Bandwidth

The term internal data transmission refers to the transfer of data within a computer, while external
(e.9., printers) or
data transmission refers to the transfer of data to either local peripheral equipment
remote computers.
A data-communications channel is a path through a medium that data can take to accomplish
a
sta-
communications task. ln effect, channels are "data highways," carrying signals from sending
tions to receiving station along predefined routes.
speed
Bandwidth is the range of frequencies which a system can handle, or (sloppily) the maximum
of data communication. Bandwidth is used in two main contexts in modern computing.
(1) Network or Communication Bandwidth
by a
Network or communication bandwidth is the maximum amount of data that can be handled
(like a modem ).This is a slang term, and should not be
network or other communications equipment
For more details see the article on Shannon's law .
used by people who should know better.
(2) Display Bandwidth
an incoming
Display bandwidth is the maximum frequency at which a monitor must be able to accept
56 / ELECTRONIC COMMERCE
signal to create a picture of a particular quality.
The grade or bandwidth of a channel determines the rate at which the channel can transmit data. A
narrow bandwidth channel, such as telegraph line, transmits data rates of 45 to g0 baud. Telephone
lines have a wider f requency rage and fall into the classif ication of voice-grade channels. They carry
data at 300 to 9,600 baud. For high-speed transmission of large volumes of data, broad- band
channels transmit data at rates of up to 120,000 baud. Coaxial cables, microwaves, and f iber optic
cables
(3) Narrowband Channel
Narrowband handles low data volumes. Data transmission rates are f rom 45 to 3OO baud. The low-
speed devices might use narrowband communications. Narrowband rates are effective for low-speed
operations such as those used with telegraph or teletype lines. Western Union is the largest com-
mon carrier which offers this type of service.
(4) Voiceband channel
Voiceband channel handles moderate data transmission volumes between 300 and 9600 baud.They
are used for applicati6ns ranging from operating a CRT to running a line printer.Their major applica-
tion is fortelephone voice communication- hence, the term voiceband.This is the most widely used
service, as it involves the use of common telephone lines from which its name is derived. Voice-
grade transmissions support much of today's online processing activities. Common telephone lines
are generally rated at 1800 BPS. Through a process called conditioning, the transmission speed of
telephone lines may be increased to 9600 BPS. Conditional lines reduce the interference which
normally accompanies higher transmission rates. Leased lines, WATA lines, and regular telephone
lines are examples of voice-grade service.
(5) Broadband Channel
Also called wideband channel handles very large volumes of data.Wideband channels have the
highest transmission rates, with speeds of 19,200 BPS and higher. Transmission rates this high are
possible with coaxial cables, fibreoptic cables, and microwave transmissions.These systems provide
data transmission rates upto 1 millionbaud or more. High-speed data analysis and satellite
communications are examples of broadband communications systems.

2.15.5 Latency
The information carrying capacity of a communications channel is very important, but it is an
average figure; it tells us nothing about how quickly a given bit of data will move from one point to
another. The time taken for this to happen is called the latency of the system. The theoretical limit
to latency is the speed of light; as far as we know, information cannot be transmitted faster than this.
An electrical signal propagates along a wire at about 70% of the speed of light. Over a wide-area
network the latency is much longer, because the message has to be processed at a number of
intermediate stations between the sender and the recipient.

2.t5 Transmission Degradation

Depending on the media type, the following problems can affect the quality of transmissions:
O Attenuation refers to loss of signal as it goes through the transmission medium, measured
in decibels (dB).
O Electromagnetic interference (EMl) is electrical background noise that disturbs or distorts
a signal as it travels down the transmission media. Fiber-optic cable is usually immune to
 ELECTRONICS AND COMMUNICATIONS / 57

EMI because it uses light rather than electronic signals to transfer data.
tr Crosstalk is a form of EMI caused by wires next to each other interfering with signals as
they travel through the transmission media.
D Dispersion applies to f iber-optic cables. Chromatic dispersion occurs when light enters the
core at different angles and spreads apart slightly as it travels to the destination.

2.17 Wireless Communication

Wireless Communications includes various telecommunications systems that use radio waves to
carry signals and messages across distances. Wireless communications systems use devices
called transmitters to generate radio waves. A microphone or other mechanism converts messages,
like sounds or other data, into electronic impulses. The transmitters change, or modulate, the radio
waves so they can carry the impulses, and then transmit the modulated radio signals across dis-
tances. Radio receivers pick up these signals and decode them back into the original messages.
Commercial radio and television are also wireless telecommunications systems, but radio and televi-
sion are mainly public broadcast services rather than personal communications systems.
Wireless communications allow people greater f lexibility while communicating, because they do not
need to remain at a fixed location, such as a home or office. Wireless technologies make communi-
cations services more readily available than traditional wire-based services (such as ordinary tel-
ephones), which require the installation of wires. This is useful in places where only temporary
communications services are needed, such as at outdoor festivals or large sporting events. These
technologies are also useful for communicating in remote locations, such as mountains, jungles, or
deserts, where telephone service might not exist. Wireless services allow people to communicate
while in a car, airplane, or other moving vehicle. Police, fire, and other emergency departments use
two-way radio to communicate information between vehicles that are already responding to emer-
gency calls, which saves valuable time. Construction and utility workers frequently use hand-held
radios for short-range communication and coordination. Many businesspeople use wireless commu-
nications, particularly cellular radio telephones, to stay in contact with colleagues and clients while
traveling.
All wireless communications devices use radio waves to transmit and receive signals. These de-
vices operate on different radio frequencies so that signals from one device will not overlap and
interfere with nearby transmissions from other devices. The number of companies offering wireless
communications services has grown steadily in recent years. ln 1988 about 500 companies offered
cellular radio telephone (cell phone) services. By 1995 that number had grown to over 1500 compa-
nies serving millions of subscribers. Wireless communication is becoming increasingly popular be-
cause of the convenience and mobility it affords, the expanded availability of radio frequencies for
transmitting, and improvements in technology.

2.18 Principles of Wireless Communications

Wireless communications begin with a message that is converted into an electronic signal by a
device called a transmitter. The transmitter uses an oscillator to generate radio waves. The transmit-
ter modulates the radio wave to carry the electronic signal and then sends the modified radio signal
out through space, where it is picked up by a receiver. The receiver decodes, or demodulates, the
radio wave and plays the decoded message over a speaker. Wireless communications provide more
flexibility than wire-based means of communication. However, there are some drawbacks. Wireless
communications are limited by the range of the transmitter (how far a signal can be sent), and since
radio waves travel through the atmosphere, they can be disturbed by electrical interferences (such
 58 / ELECTRONIC COMMERCE
as lightning) that cause static.
Wireless communications systems involve either one-way transmissions, in which person
a merely
receives notice of a message, or two-way transmissions, such as a telephone conversation
between
two people' An example of a device that sends one-way transmission is a pager, which is
a radio
receiver.When a person dials a pager number, the pager company sends a radio-signal to
the desired
pager.The encoded signaltriggers the pager circuitry and notifies the customer
cairying the pager of
the incoming call with a tone or a vibration, and >ften the telephone number of the caller. Advanced
pagers can display short messages from the caller, or provide news updates
or sports scores.
Two-way transmissions require both a transmitter and a receiver for sending and receiving signals.
A
device that functions as both a transmitter and a receiver is called a transceiver. Cellular radio
telephones and two-nray radios use transceivers, so that back-and-forth communication between
two people can be maintained. Early transceivers were very large, but they have decreased in size
due to advances in technology. Fixed-base transceivers, such ai those us-ed at police stations, can
fit on a desktop, and hand-held transceivers have shrunk in size as well. Several current models of
hand-held transceivers weigh less than 0.2 kg (0.5 lb).

2.19 ).lodes of Wireless Communkation

Wireless communications systems have grown and changed as technology has improved. Several
different systems are used today, allof which operate on different radio frJquencies. New technolo-
gies are being developed to provide greater service and reliability.

2.19.1 Sea and Air Transceivers

The first wireless communications devices were radio telegraphs. A telegraph is a device that sends
simple electrical pulses along copper wires. The pulses were caused bytontact between two metal
surfaces, and receivers interpreted these electrical pulses as tones or beeps. A code of long and
short signals was developed to represent the letters of the alphabet (see Morse Code, lnternational),
and in this way coded messages could be sent between telegraphs. Radio telegraphs used radio
waves rather than wire telegraph lines to send and receive messages. Radio te-legiaphs sent tel-
egraph signals over long distances and were ideal for ship-to-shoie communication. Bulky radio
telegraphs were installed on ships as early as 1899 and were widely used by 1905. A telegraph-
equipped ship was found to have been sailing in the vicinity of the Titanic afterihe Titanic,s collision
with an iceberg in 1 912, but the telegraph operator had gone off duty. Because of the Titanic disaster,
government representatives met and established rules for enhancing the safety of life at sea through
the use of wireless communications. One of these rules required major ocean-going vessels to
monitor distress frequencies on a 24-hour basis.
Radio operators still monitor distress channels, but maritime and aviation telecommunications sys-
tems now use high{requency radios and satellites capable of transmitting speech, rather than wire-
less telegraphy, to send messages. Aircraft pilots use radios to communicate with air traffic control-
lers at airports and also to communicate with other pilots. Navigation beacons are equipped with
transmitters that send automated signals to help ships and aircraft in distress determine their posi-
tions. While high-frequency radio can transmit signals over long distances, the quality of these
signals can be diminished by bad weather or by electrical interJerence in the atmosphere, which is
often caused by radiation from the sun.
Hand-Held Radio Transceivers Police, fire, and other emergency organizations, as well as the mili-
tary, have used two-way wireless radio communication since the 1930s. Early vehicle-based radios
were large, heavy units. After the invention of the transistor in 1948, radios shrank in size to small
hand-held radio transceivers, which civil authorities now use to communicate with each other di-
 ELECTRONICS AND COMMUNICATIONS / 59

rectly. Public two-way radios with several frequency options are widely available as well. Usually
limited in range to a few miles, these units are great aids for such mobile professionals as construc-
tion workers, film crews. event planners, and security personnel. Simpler two-way radios, called
walkie-talkies, have been popular children's toys for years. Most walkie-talkies broadcast on channel
14 of the citizens band (CB), a range ol frequencies grouped into channels and allocated for public
use. CB radios can lransmit and receive on 40 different channels.
Shortwave Long-range broadcast services and f requencies, in what is known as the shortwave radio
band (with frequencies of 3 to 30 megaherlz), are available for amateur or ham radio operators.
Shortwave radio broadcasts can travel long distances because of the concentration of ionized, or
electrically charged, particles in the layer ol the atmosphere known as the ionosphere. This layer
reflects radio signals, sending signals that are transmitted upward back to earth. This skipping of
waves against the ionosphere can greatly increase the range of the transmitter.The degree of reflec-
tivity of the ionosphere depends on the time of day. During daylight hours, the ionosphere has the
concentration of ions necessary for reflectirrg radio waves in the higher f requencies of the shbrtwave
band back to earth. At night, it has the concentration necessary for reflecting lower frequencies
within the shortwave band. lf adequate density of ions is not reached, the radio waves simply
continue through the ionosphere into space.

2.19.2 Cellular Radio Telephones

Cellular radio telephones, or cell phones, combine their portable radio capability with the wired, or
wireline, telephone network to provide mobile users with access to the rest of the public telephone
system used by non-mobile callers. An early form of radio telephone communicated with a single
powerful antenna within a given geographic or metropolitan area.This large antenna was wired to the
telephone system. (These fixed radio telephones are still used in some remote locations to substi-
tute for wireline telephone exchange facilities.) Because there was only one antenna for a given
metro area, this limited the number of frequencies that could be used, since radio telephone frequen-
cies would often overlap and cause interference. Modern cellular telephones use a network of sev-
eral short-range antennas that connect to the telephone system. Because the antennas have a
shorter range, f requencies can be reused a short distance away without interference.
Cell phone towers pick up requesls from cell phones for dialtone and also deliver inboLrnd calls to the
appropriate cell phone.To do this, the cell phone must have a singular identity that can be recognized
by computers housed in a central Mobile Telephone Switching Office (MTSO). When a cell phone is
turned on, it connects by radio to the nearest cell tower (the tower receiving the strongest signal).
The cell towers are spaced so their receiving ranges slightly overlap.This continuous contact makes
it possible lor the MTSO to transfer a call from tower to tower as a mobile cell phone user (in a
moving vehicle, for instance) moves from one ceJl area to another.

2.19.5 SatelliteCommunications
Satellite communications services connect users directly to the telephone network from almost
anywhere in the world. Specialtelephones are available to consumers that communicate directly
with communications satellites orbiting the earth. The satellites transmit these signals to ground
stations that are connected to the telephone system.These satellite services, while more expensive
than celtular or other wireless services, give users access to the telephone network in areas of the
v.rorld where no telephone service exists.

2.2O Networks
Computers can communicate with other computers through a series of connections and associated
60 / ELECTRONIC COMMERCE
hardware called a network. The advantage of a network is that data can be exchanged rapidly, and
software and hardware resources, such as hard-disk space or printers, can be shared.
One type of network, a local area network (LAN), consists of several PCs or workstations connected
to a special computer called the server. The server stores and manages programs and data. A server
often contains all of a networked group's data and enables LAN workstations to be set up without
storage capabilities to reduce cost.
Mainframe computers and supercomputers commonly are networked. They may be connected to
PCs, workstations, or terminals that have no computational abilities of their own. These "dumb"
terminals are used only to enter data into, or receive output from, the central computer.
Wide area networks (WANs) are networks that span large geographicalareas. Computers can connect
to these networks to use facilities in another city or country. For example, a person in Los Angeles
can browse through the computerized archives of the Library of Congress in Washington, D.C. The
largest WAN is the lnternet, a global consortium of networks linked by common communication
programs.The lnternet is a mammoth resource of data, programs, and utilities. lt was created mostly
by American computer scientist Vinton Cerf in 1973 as part of the United States Department of
Defense Advanced Research Projects Agency (DARPA). ln 1984 the development of lnternet
technology was turned over to private, government, and scientific agencies.The World Wide Web is
a system of information resources accessed primarily through the lnternet. Users can obtain a
variety of information in the form of text, graphics, sounds, or animations.These data are extensively
cross-indexed, enabling users to browse (transfer f rom one information site to another) via buttons,
highlighted text, or sophisticated searching software known as search engines.

2.21 Future Developments in Computing

ln 1965 semiconductor pioneer Gordon Moore predicted that the number of transistors contained on
a computer chip would double every year.This is now known as Moore's Law, and it has proven to be
somewhat accurate. The number of transistors and the computational speed of microprocessors
currently doubles approximately every 18 months. Components continue to shrink in sjze and are
becoming faster, cheaper, and more versatile.
With their increasing power and versatility, computers simplify dayto-day life. Unfortunately, as
computer use becomes more widespread, so do the opportunities for misuse. Computer hackers-
people who illegally gain access to computer systems-often violate privacy and can tamper with or
destroy records. Programs called viruses or worms can replicate and spread from computer to
computer, erasing information or causing computer malfunctions. Other individuals have used
computers to electronically embezzle funds and alter credit histories (see Computer Security). New
ethical issues also have arisen, such as how to regulate material on the lnternet and the World Wide
Web. lndividuals, companies, and governments are working to solve these problems by developing
better computer security and enacting regulatory legislation.
Computers will become more advanced and they will also become easier to use. Reliable speech
recognition will make the operation of a computer easier. Virtual reality, the technology of interacting
with a computer using all of the human senses, will also contribute to better human and computer
interfaces. Standards for virtual-reality program languages, called Virtual Reality Modeling language
(VRML), currently are being developed for the World Wide Web.
Breakthroughs occurred in the area of quantum computing in the late 1990s. Quantum computers
under development use components of a chloroform molecule (a combination of chlorine and hydro-
gen atoms) and a variation of a medical procedure called magnetic resonAnce imaging (MRl) to
compute at a molecular level. Scientists used a branch of physics called quantum mechanics, which
 ELECTRONICS AND COMMUNICATIONS / 61

describes the activity of subatomic particles (particles that make up atoms), as the basis for quan-
tum computing. Quantum computers may one day be thousands to millions of times faster than
current compulers, because they take advantage of the laws that govern the behavior of subatomic
particles. These laws allow quantum computers to examine al!-possible answers to a query at one
iime. Future uses of quantum computers could include code breaking and large database queries.
Communications between computer users and network$ Atill benefit f rom new technologies such as
broadband communication systems that can carry signilicantly more data and carry it faster, to and
from the vast interconnected databases that continue to grow in number and type.
ln 1965, Gordon Moore was preparing a speech and made a memorable observation.When he
started to graph data about the growth in memory chip performance, he realized there was a striking
trend. Each new chip contained roughly twice as much capacity as its predecessor, and each chip
was released within 18-24 months of the previous chip. lf this trend continued, he reasoned, comput-
ing power would rise exponentially over relatively brief periods of time.
Moore's observation, now known as Moore's Law, described a trend that has continued and is still
remarkably accurate. lt is the basis for many planners' performance forecasts. ln 26 years the
numbei. of transistors on a chip has increased more than 3,200 times, from 2,300 on the 4004
in 1971
to 7.5 million on the Pentium" ll processor.
,,Gordon Moore just plain got it right . . . I should also mention that Moore's Law has also given rise
to Machrone's Law, which was true for many years, which is that the machine you want always costs
$5,0001'
E Bill Machrone : A very small addendum to Moore's Law is Rock's Law which says that the
cost of capital equipment to build semiconductors will double every four years."
D lntel's recent roadmap for notebook products looks quite jolly. Already in the beginning of
next year we will see the first Giga Hertz processor for mobile platforms and mobile Pentium
lll processors at up to 1.26 GH1 will arrive soon afterwards as well. The workstation and
server roadmap is not quite as interesting, except for the lSct that lntel is counting a loi on
,Third party'chipset makers to provide non-RDRAM platfdrms for those systems.

2.22 ).lobile Processors

ntium 4 plans of reaching the 2 GHz-barrier in Q2l
might find your respect as well. ln the next quarter
Pentium lll at 9OO MHz and 1 GHz, thus being the
ks in history. Both of those processors will still be
l, Celeron and Pentium lll processors do for more
than 18 months now.
tlas lntel will release Pentium lll
he'Coppermine-T' core which You
OO0. lt is not hard to figure out that
that runs at 133 MHz, thus finallY
's Pentium lll brothers in desktop systems. ln this
obile'Tualatin'-Pentium lll processors at 1 '1'3 and
B. This might be the first official appearance of
,Tualatin', since it makes more sense for lntel to supply the mobile market with this 0.13-micron
process cPU early, due to its lower power and heat requirements.
going from a
Basically we can see lntel pushing the mobile processor market quite hard next year,
62 / ELECTRONIC COMMERCE
850 MHz Pentium lll that is available now to '1.26 GHzin only some 6 months.
obviously those new
processors and their specs require new mobile chipsets ai well,
which will Oe exptained in detail
further down the article. ., 'r ev
The mobile Celeron is not in quitJJ's much of
brother
Pentium lll is. ln fact, the mobile Celeron sbems
of 2OO1
will see the mobile Celeron T1},e2l2}Otauil,l bri
. By this
time Celeron is far behind pentium lllandJht wo

I
.F'

a
t
.q,

fl
 Cn par 3
IIfFORMATIO]Y
TECH]VOLOGY

5.t Fundamentals of lnformation Systems

5.1.1 Data
Very few information systems text-books ever bother to define the term 'data', assuming that its
meaning is so obvious that it doesn't need discussion. Many misunderstandings can arise from that
failure to consider the meaning of such a basic concept.
'Data'is the plural of 'datum'. A dictionary definition of 'datum'is "any fact assumed to be a matter of
direct observation" .This approach adopts the conventional assumption that there is a reality outside
the human mind, which humans cannot directly capture, but which they can sense and measure.The
same dictionary defines'fact'as "what has really happened or is the case; truth; reality". A fact is
therefore in the'real world'and a'datum'is in the human mind.
For the discipline of information systems, a little more care is needed in the def ining such a key term
as'data'. lf the dictionary formulation is used, then numbers produced by a random number generator
in a computer might be excluded, and we would need another word to describe those kinds of
numbers.
The following def inition caters for that problem:
D 'Data' is any symbol, sign or measure which is in a form which can be directly captured by
a person or a machine. We can then use related terms to differentiate between different
kinds of data. ln particular:
tr 'Real-world data'is data which represents or purports to represent a fact in the real world;
whereas'synthetic data'is data which does not.
tt
3.1.2 lnformation
Like'data', the term'information' is often used in information systems text-books without a clear
definition being given. Many authors assume that their readers' conceptions of the notion are sufficiently
similar to their own that it can be taken for granted.
Dictionary definitions identify two senses of the word. One is from Shannon and Weaver's theory of
communications, in which information is 'a measure of the quantity of data in a message'. This has
been extremely important in communications engineering; but it is far too narrow to serve the pur-
poses of the information systems discipline. The other is 'an accretion to knowledge'. But this is very
 64 / ELECTRONIC COMMERCE
similarto the definition of real-world data, with the minor exception that
it implies that the data is new,
i'e' not previously in the collection.To provide a basis for information
systems tn"ory, *" must probe
a little deeper than the dictionaries go.

y carried out). But we don't usually bother even

measuring, let alone recording, the pressure in the tyres on the trucks, the number
ortnip-marks in
the painiwork, the condition of the valves on the motor, or the number of consecutive
hours the driver
has been at the wheel'There are myriad real-world facts that we let go by, and
never capture as data.
of the real-world data'which we do capture, many kinds are very uninteresting.The contents of
s record the background noise emanating f rom various parts of the
signal from a projectile launched from the earth, and just possibly
which an inter-stellar event can be inferred, or perhaps the exist-
in the universe. But usually the contents are extremely boring, and
devoid of any value to anyone. Similarly, a great deal of the data captured by
commerce, industry
and government is either'just for the record'or of interest for only a very shorftime,
and then filed in
case someone ever wants to look at it again.

5.1.3 Relevance
What is it that makes data interesting or valuable? The most straightforward way in which
data is
useful is when it is relevant to a decision. Each morning, we don't usually think about
what the
weather is like outside until we 1re deciding what to do with the day (if it's a weekend) or
what to wear
(if it's a workday). Data about a delivery of a particular batch of baby-1qe6
to a particular supermarket
is lost in the bowels of the company's database, never to come to light again, unless and
until
something exceptional such as the bill not being paid, the custom]er complaining abotrt
l"?p"l:,
short delivery, or an extortionist making a telephone call io claim that poison has bben
added to
some of the bottles.
The question as to what data is 'relevant to a decision' is not always clear-cut. The narrowest
interpretation that we could make is that data is relevant and of value, only if it actually
;"1;;
difference to the decision made. As we shall see in the next section, decision-making processes
are
often corniilex,^anci in many circumstances it is unknowable whether data made a difference
or not.
So that very ndrrow criterion, attractive though it may seem, is not a very useful approach.
A broader interpretation is that data is relevant and thErefore of value, if, depending on whether
or not
it is available to the decision-maker, it could make a difference to the decision. inis approach
can
also lead to difficulties. How do we decide whether it might make difference? What if the data
4 might
make a difference, but in law shouldn't (e.g. where a person's etlthic background or mar1al
status is
precluded by anti-discrirnination legislation from being a factor in employment
decisions, but the
decision-maker is known to have a bias for or against people from a pariicular race or country, or
people who are divorced)? What if the data might make a difference but logically
shouldn't (e.g.
because the person making the decision doesn'f understand how interest is catcutiteo on
a loan)?
ln addition to decision-making, there are other circumstances in which data can be interesting
or
valuable' When we read the newspaper, listen to the news on the radio, or watch ,infotainment,
programs on television, we are seldom making decisions, and yet we perceive informational
value in
some of the data presel:teC to us. Sometimes it is merely humorous. Sometimes it is not what we
 INFORMATION TECHNOLOGIES / 65

would have expected, and therefore has'surprisal'value ("GoshlThe government might survive the
election yet!" Or "An injury incurred in training will keep the star fullback out of the Grand Final!").
ln other cases, it may be something that fits into a pattern of thought we have been quietly and
perhaps only semi-consciously developing for some time, and which seems, for no very clear rea-
son, to be worth filing away (things like the proportion of this year's immigrants who were British, or
Kiwis; or the proportion of companies who are requiring skills with web-publishing as a condition of
employment).
The most useful and convCntional way to use the term'information' in the information systems
discipline is to encapsulate these points:
A 'lnformdtion' is data that has value. lnformational value depends upon context. Until it is
placed in an appropriate context, data is not information, and once it ceases to be in that
context it ceases to be information.
O Some people feelvery uncomfortable with this def inition. lt forces us to confront the f luidity
of the sjtuation. Rather than a nice, straightforward 'thing', describable in mathematical
terms, and analysable using formidable scientific tools, this definition makes information
rubbery and intangible, a'will o'the wisp'.
Finally, we must again acknowledge that the term'information'is frequently used, even in the infor-
mation systems discipline, in senses different f rom the somewhat formal def inition proposed above.
ln particular,'information'and'data'are olten used interchangeably (which seems like a terrible
waste of a usefulword).

3.1.4 Decision
The most common manner in which data can have value, and thereby become information, is by
making a difference to a decision. lt is therefore important to consider in some depth what a decision
is, and what decision-making processes are about. A'decision'is a choice arnong alternative courses
of action. ln many cases, the making of the decision is performed in the same breath as the taking
of the action itself. ln other circumstances, however, we may make a nrental commitment, but take
no action until a short time later. Note, too, that'action' includes 'inaction', i.e. we can decide to do
nothing, as in "shall ltake part in the demonstration against the cuts to the tertiary education budget
tomorrow? No, I don't think l'll bothe/'.
A'decision-making process' is the procedures which result in a decision being reached. How a
decision comes about is important to understand.The simplest model of decision-making envisages
four steps:
D ATrigger
tr lnformation-Gathering
O Alternative-Generation
5.1.5 Ghoice t
The'trigger'is something that causes a person to realise a decision is needed, such as the notice
you will receive to re-enrol for units next year. ln order to make the decision, you will need to gather
information about what units are going to be offered, and of course you'll need to know your results
for the previous year. The decision-maker needs to generate a set of options, and then to choose
among them.
Gaining access to information is crucial to most of these steps. ln order to choose, for example, you
 66 / ELECTRONIC COMMERCE
n99d to know what your objectives are, in order to work out a criterion whereby you
can work out
which is the best of the available options.
ln practice, this model is too simple. lt's a'normative model', because it describes
how scientists
think people ought to make decisions.To support organisations making complex
decisions, we need
'behavioural models' which describe how managers and executives really
make them.
One example of the difference between the two is that most people don't actually
search out the
'satisfice'. This odd word was coined, because peo-
ey don't diligently search a huge decision-space in
think of a few possibilities, and ask themselves ,,ls
that's adequate, they stop searching, and the deci-
sion's made. That's 'satisficing'. ln order to understand topics in information systemi, it is important
to always keep in mind these fundamental notions of data, information and decision-making.

3.2 The Relationship Between lnformation and l{nowledge

ln a related document, knowledge is defined as either:
O (Naively) a body of facts and principles accumulated by mankind in the course of time;
or
o (More usefully) the matrix of impressions within which an individual situates newly acquired
information.
A further concept which can be confused with information is'wisdom'. This is, however, on an
entirely different plane from information, because it has to do with judgement exercised by applying
decision criteria to knowledge combined with new information.
Note that the orthodoxy represented in this document is not universally shared. A nice expression of
the philosophical sceptic's position is as follows:"lnformation, [even today], is no more than it has
ever been: discrete little bundles of fact, sometimes useful, sometimes tiivial, and never the sub-
stance of thought [and knowledge] ...The data processing model of thought ... coarsens subfle
distinctions in the anatomy of mind ... Experience ... is more like a stew than a filing system ...
Every piece of software has some repertory of basic assumptions, values, limitationj embedded
within it '.: [For example], the vice of the spreadsheet is that its neat, mathematical facade, its
rigorous logic, its profusion of numbers, may blind its user to the unexamined ideas and omissions
that govern the calculations ... garbage in - gospel out. What we confront in the burgeoning surveil-
lance machinery of our society is not a value-neutraltechnological process ... lt is, ratn"r, the social
vision of the Utilitarian philosophers at last fully realized in the computer. lt yields a world without
shadows, secrets or mysteries, where everything has become a naked quanfity"

3.= Information Age

There is no doubt about it, we are in the information age. lf you don't believe me all you have to do
is listen to the media who tell us this hundreds of times a day, dr just simply read any business,
computer or internet publication which no doubt will emphatically ntake this point on numerous
occasrons.
lf listening or reading is not to your liking, then give your fingers some exercise and log-on to the
World Wide Web. There you will find oodles of information ranging from information about Moses'
brother Aaron to an analysis of the shape and unique design olthe stripes of each zebral
Of course with all of this information, there is no doubt that the human race is better off . Or are they?
 INFORMATION TECHNOLOGIES / 67

3.4 What are lnformation Systems

lnformation Systems is a particulardiscipline, or branch of learning. lt is concerned with the application
of information to organisational needs.The scope of lS includes manual, computer-based and other
forms of automated procedures, and applications of information technology generally.'lnformation
Systems' (lS).is the study of information production, flows and use within organisations.
lS makes extensive use of information technology (lT) artefacts. But it is very important to appreciate
that its scope encompasses systems in their entirety, including manual activities, the interface
between manual and automated components of systems, design aspects of lT artefacts, and
economic, legal, o€anisational, behavioural and socialaspects of systems.
lnlormation systems overlaps with both the computer science and business clusters of disciplines;
lor example, software engineering and database management and some aspects of application
software development overlap with computer science, and systems analysis and organisational
behaviour overlap with the business-related disciplines.
Commercial lnformation System is derivative from a wide variety of disciplines. These include:
tr Computer science, electronic and telecommunications engineering;
D Accounting, economics, operations research and other decision sciences;
tr Business administration, individual behaviour (particularly the developing fieid of the cognitive
sciences), linguistics and organisational behaviour;
O And law.
A major applications area is in commercial, administrative and industrial systems, but it is also being
applied in association with other disciplines, including applied sciences (such as geography and
geology), social sciences (such as econometrics) and humanities (such as art history).

5.5 Who Processes lnformation?

Clearly, our young students can write more informative book reports and as consumers, obviously
we can make more informed purchase decisions. lmagine, at our f ingertips lies the ability to find out
everything about every product ever made and more! Gee, with all of this information all we have to
do is plug it into some formula or equation and out comes an answer. Ah, but where is that formula?
Who holds the magic key that enables us to process all of this information into a comprehensive
conclusion?
The answer currently is no one, not even ourselves. Many years ago, Jack Jacoby, a well-known
marketing scholar established that consumers can easily suffer f rom information overload at rela-
tively low levels of information processed. ln fact, the human brain begins to have processing prob-
lems when only 5 pieces of information are processed simultaneously.
Unfortunately the human fingers can type hundreds of requests for information on the internet much
faster than the brain can process them, and overload lor fingers occurs much later than an over-
loaded brain! ?
So we ask, what is dramatically needed in today's world? Clearly, it is not more information, we have
that in buckets. No, what is needed is the ability to process information into a cohesive who. When
this occurs, information transforms itself into knowledge and knowledge is the second level on the
learning hierarchy.
Those who believe that bigger is better have been watching too many Godzilla movies. Size may
matter in horror movies, but it does not cut the mustard when one has been given the task to write
corporate strategic reports or marketing positioning statements. Here what matters is clarity, con-
ciseness and support for one's conclusions.
 68 / ELECTRONIC COMMERCE

5-5 lnformation lndustry

goods and services_a
P). Perhaps even more
formation industry is its
, the United States has
economic power in the world, largely as a result of
tion technology.
ln the next ten to fifteen years, the world will undergo one of history's
greatest technologicaltransfor-
rgoes a rapid and fundamental transformation. A
dramatic shifts in consumer needs or desires but
technological movement is triggering a corre_
e new information industry. Combined, the two
and upheaval.
the core of an expansive array of informa_
d digitat. The buitding btocks of this digitat
ors_will realign the computer, telecommuni_
ess, a new competitive landscape will be spawned.
ew commercial entities, enabled through an amal_
y.The same landscape willalso be litteied with the
remains of once-dominant companies and institutions unwilling to graif the magnituOe anO
Evolving patterns of escalating_even
rowth opportunity ratherthan a mere
will replace physical assets and physical
d entertainment.
3.7 Transformation to lligital Technology
The information industry.today is in the early stages ation. Historically, the
industry has been organized on the basis oi infoima n the inUustry tended
to focus on business opportunities related to r si such as voice, text,
ary advances have occurred over the past two
digital electronics. Coupled with the changes now
tion transmission to broadband communications,
d a major paradigm shift in the information industry.
with digital electronics fast becoming the dominant technorogy for eveLy existing information-based
business, a realignment of the broader information industry [is become inevitable.
We believe that
this realignment will occur along the lines of information function or capability. ln short,
information-
oriented businesses will, over the next ten to fifteen years, (offcource from year 2OOo)
reorganize
themselves into the following three broad groups:
D Players involved in the creation and collection of diverJe
[pes of information content
? Players involved in the manufacture of a wide variety of information
a Players organized to engage in various modes of information transpoit"ppfi"n"".
Significantly, we believe that today's computer hardware industry will be relegated
to an important
but constricted role as the supplier of memory and processing capabilities-to each
of the three
functionally defined information industries. To iuccer'
nies must
learn how
conce'ts;
customize bilitY' and
efficiency;
 INFORMATION TECHNOLOGIES / 69

The information industry is far from being a mature industry, as evidenced by the low penetration of
even basic phone service in a large partbf the world. While the information industry is about a sixth
of the U.S. economy, it accounts ior a mere fraction of that amount for the vast majority of nations.
However, that proportion will surely increase, fueling unprecedented growth. Coupled with the dra-
it is
matic new capabiiities made possible by phenomenal and unrelenting advances in technology,
evident that the information industry is in perhaps the most exciting period ever seen in any industry.

5.8 The lnefficient lnformation lndustry

and
Because information-based businesses are becoming increasingly crucial to our commercial
For example,
social lives, inefficiencies in the information marketplace are becoming less tolerable.
today's informatioh industry is characterized by the following:
B Significant waste of economic and ecological resources-Consider, for example, the pro-
Orition and distribution of bulky newspapers. A single Sunday printing of the New York
Times consumes sixteen acres of forest, and the typical customer discards most of
the
paper unread.
of
tr lnadequate matching of information content with the needs of the recipients-An example
this is the average llrge city-phone customer who uses only a handful of the rnillion-plus
numbers available in the localphone directories'
O Severe time and place constraints on information access and availability-For example,
with prescheduled broadcasts ol television and radio programs, it is safe to assume that
a
large portion of the target market is excluded from the audience.

tr Cumbersome and expensive physical infrastructures for information distribuiion-Examples

of these are books, movies, videotapes, and software'
D video rentals.
P:?::ffiIJ
Book authors
producers
receive barely 10 to 15 percent of what customers pay for their product' CD-ROM
typically sp"nO 60 to 7b percent of retail revenues on wholesale and retail margins.
But the question remains, how can such final solution (Salvalion or nirvana)
be obtained? A col-
task one day to present a marketing positioning report to the
league once told me that he had the
and hours on the report and the
r"i"g"r"nt of a large consumer goods companv. He worked hours
night before the presentation, and did not get any sleep'
200 slides to
When he was ready to present on the morning of the next day, he brought along over
peeled olf the firsi slide and said good morning, the
make his case to management. As he sleepily
"ok, in two sentences or less, I want you to sumtnarize your
CEO of the company stJod up and said:
his cup of coffegand held back his anger. He hesitated
entire presentationl; My colleague put down
products into the
for a moment, thinking all alon-g and then said-"ok, you have introduced five new
will be losers and one I am undecided about'"The
market, in my opinionion" will-be a winner, three
CEO then asked him to begin his presentation from the top'
an attempt should
So what does this example suggest? lt implies that as one collects information
the data suggests. Once these themes are
always be made to ideniify thJunderlying themes that
categories that tell a
identified, the information collected can easily be categorized into relevant
simple yet convincing story.
 70 / ELECTRONIC COMMERCE
But the story does not end here, in the learning process, when
information is amassed and organized
it leads to knowledge, but it is only when knowledge is amassed
that we have achieved wisdom.
I am sad to say that few. of us get to gain wisdom. The problem'with
wisdom is that it takes time to
achieve' ln our information addicted iociety where yesieroay is
a day too late, we lack neither the
time nor the motivation to accumulate the knowledg'e which lLads
to wisdom.
our.dot'com society is alluring and seductive, but as we ale beginning
to see many companies and
bodies are beginning to fall by the wayside, lt is my belief thaiwe
should begin to slow things up,
begin to "smell the roses, or the coffee" and realize that information
which is older than 1O minutes
old is indeed worthwhile if it can be adeptly fit into the jig.saw
iu=zlecaled t nowteJg;.
The marketing professor who asked his students to write a report where
no reference was more
recent than 1952, had the correct idea. As soon as the.laughter subsided
in his classroom, he made
the point that we should nevei forget the information'which was obtained
when a given field was
young, for it was the foundation of the knowledg > in that field.
We all know that witho-ut a strtng foundation the house is likely to fall and
we will forever be con-
demned to toil in the information age instead of seeking to advance through
knowledge into the age
of wisdom! ,

5.9 lnformation Functions

The horizontal dimension of the matrix in Table 1 depicts what people do with
information_create,
display, store, process, or distribute it.
Table 3.1 Examples of Today's lnformation lndustry
Text (Publishing) Voice(Telcom) lmage(Photography) AudioA/ideo (Entertainment)
Data
(Computing)
Content' (creation and collection)writers, ncies directory
ph
publishing and Yellow Pages
ising agencies
acto
writers, singers, musicians, servicJs lOow
publ
Jones, Compuserve, AOL), database tioris
Display (devices) books, magazines, newspapers, and coupons terephone equipment,
cpE
(handsets, key systems, and pBX), and wireless (pagers and ceiluiar prrbnes;
photographs, slides, slide projectors, fax machines, piint6rs, copiers,
and photo cti
TV f ilm (movies), radio, high fidelity consumer commercial projectors, VCRs, and
HDTV
PCs, PDAs, terminals, and workstations
Store (memory devices) libraries and information services pagers, answering
machines, and
voice mailfilm, pictures, slides, cD-RoM, and microiic6e videotape,
audio tape, bbs,
film (movies), disks, and game cartridges disks;tapes;floppies; optical,
nasn memorv,
and PCMCIA cards
Process (applications) printing and publishing industry and
ryord-processing software voice
processing and telco network_equipment photo-developing services,
iriage processing,
and linotronic film production, TV production, and editing Pds, workstationi,
maintrameii
supercomputers, transaction processing, and service bureaus
distribute (transport) U.S. Postal Service, other express delivery, fax books, distribution
system,
and telecom services telecom voice service, communication services, pagini,
ani
messaging U.S. Postal Service, other express delivery, fax, and telecom servic6s
fVl
radio broadcast, cable, satellite, theaters, and video'prrchas" and rental computer
networks (LAN, WAN) and telecom data services.
 INFORMATION TECHNOLOGIES / 71

3.9.1 Creation
The first function is the creation and collection of information content. ln the digital future, content is
clearly key, and the networks will evolve to support increasingly rich forms of it. Content includes
text, images, data, movies, and television programming (including sports), as well as evolving con-
tent, including on-line games and interactive shopping.

5.9.2 Display
The second function is information display. Historically, each form of content utilized its own form of
display, creating manufacturing companies with distinct core competencies. For example, textual
information has been predominLntly displayed on paper;telecommunications companies have used
audio handsets; still images have mostly been displayed on photographic paper (with a trend toward
plain paper); computer lnd television images are typically displayed on cathode ray tube (CRT)
ierminals; and portable computers and similar devices use liquid crystal displays (LCD) and other
f lat-screen technologies.

3.9.3 Storage
The third function is information storage. Because the creation and consumption of information are
typically separated, and because information tends to have lasting value, storing information is a
jaluabie function. lnformation can be stored through a variety of means: books, magnetic media,
CD-ROMs, microfiche, answering machines, film, videotape, audiotape, and game cartridges. Other
emerging technologies for storage include DVD-ROMs, llash memory (semiconductor-based memory
cards), and holographic memorY.
The key driver of the value of a storage system is the extent to which information within it is readily
accessible.Thus, storage that permitJthe use of advanced database-management software, as well
as random access, is increasingly preferred over other kinds of storage'

3.9.4 Processing
The fourth function is the processing of information (the applications business), which creates infor-
mation through the intelligent manipulation of data. ln the past, a variety of processing approaches
and technologies have be-en used, based on the specific media. For voice information in the telecom-
munications industry, companies have used voice-processing technologies. For text information,
publishers have used wordprocessors (with spelling and grammar checks) and desktop-publishing
software. ln the imaging business, companies have primarily used chemical processes to improve
images, though sottware-Uased approaches are becoming more prevalent. For audio/video informa-
tionJcompanies have relied heavily on editing and mixing technologies. Finally, processing has been
(almost by definition) the most intensive for data applications.

5.9.5 lransport
The filth function is the dist igformatio lndustries
based on different forms of 5laborate infrastruc.
tures for distribution.The tel velopeda network of
copper wires. ln the past decade, a wireless infrastructure based on cellular technology has also
been created for voice communication.Text information has historically been distributed in a manner
similar to manufactured goods_from factory to intermediaries to end users. lmage information has
largely ridden on the same infrastructure, which includes the postal system and various express-
deiivery companies. The telecommunications industry has also entered this area via the fax ma-
chine. Video and audio information was historically broadcast over the airwaves; but, in the last two
 72 I ELECTRONIC COMMERCE
cjecades, the cable-television system has come to dominate video distribution, along
with the sale
and rental of videocassettes. lncreasingly, satellite transmission is also playing a larler role
in the
distribution of video information. Finally, for data transport, a variety of'compirter-n6tworking
ap-
proaches, such as Ethernet and token-rings, h we become widespread. The
lnternet, utilizing the
telephone rtation network for computers. The underlying
technologi he separation of these industries by form have
been rend the forces at work leading to convergence.

5.10 The Functionally Based Companies of the Future

We postulate that when the industry realigns based on functional capabilities, the dominant players
worldwide are very likely to be from the:
O Entertainment
O Consumer Electronics
D PersonalComputer
O Communications lndusi?ies.
5.10.1 The lnformation Content lndustry
Content is the driver behind all of the information industries. Networks will evolve to deliver increasingly
rich content, eventually full broadband multimedia. Similarly, appliances must advance to display
content in color, full video, and high-fidelity stereo. The expense of these advancements will be
rationalized by the content they will carry and display.
Publishing and entertainment companies will converge into the digitized content business. lncreas-
ingly, content is being created or translated into its binary equivilent. Once digitized, content be-
comes increasingly valuable because it can be reproduced per{ectly and transmitted instantane-
ously to almost any point on the planet. Much of the information users need is already out there but
is inaccessible in a timely and convenient manner. Providing greater time and place value on exist-
ing information will thus be a big part of the future content business.
Packaging of information and verifying its accuracy (symbolized in information brands) will be an
important value-added function provided by content players. Newspapers and magazines are well
positioned for the future, because they already deal in digitized information.

5.10.2 Adapting to the Xew Paradigm

Of the three new form-based industries, the conient area is farthest along in moving to the new
model' First, a great deal of content is alr-eady digitized. Second, the rationalization of content
businesses has been underway for some time, so that rve already have large content entities such
asTime-Warner, which owns magazine and book production, television prograrming, movies, music
labels, sports teams, and cartoons.
Consolidation will continue between the entertainment industry gnd the publishing industry on a
global basis. The two will dominate the content business in all forms (including voice, data, and
image content), not just the forms in which they previously specialized (video and text). They will
also take over content lrom other businesses; for example, they are likely to acquire the yellow
Pages and white Pages directory businesses currently owned by telcos.

5.t0.5 The lnformation Appliances lndustry

Consumer electronics companies and PC manufacturers will converge into the information appli-
ances industry. Companies such as Sony, Matsushita (Panasonic), Sharp, LG (Lucky Goldstar)
 INFORMATION TECHNOLOGIES / 73

Thomson, and Philips have already moved ahead in developing a new generation of content display
devices. They dominate the manufacturing of traditional consumer electronics products as well as
for telephony and fax machines, which places them in a superior position to PC manufacturers and
traditional telecommunications providers such as Lucent, Motorola, and Nokia. These companies
will continue to dominate in infrastructure but will cede the consumer markets to electronics manu-
facturers.
Devices were originally manufactured to display content in the form in which it was created. Sepa-
rate industries were creatbd around designing and building phones, televisions, computers, and
printing presses, and developing and printing film. Devices are now being designed to handle content
in multiple forms. For example, digitalwireless phones have an LCD display that can receive alpha-
numeric messages, including caller lD and eventually e-mail.

5.1I The lnformation Transport lndustry

Public telephone networks, the lnternet, wireless networks (including satellite), cable television,
broadcast media, and private networks will be consolidated into the information transport business'
The nerve system of the future information industry, indeed of the future global economy, will be a
communications network of enormats capacity and sophistication. By the year 2010, a global net-
work of virtually infinite capacity will be in place. lt will be a network of networks, consisting of
multiple overlapping and interconnected webs that collectively will realize the promise of huge (by
today's standards) two-way bandwidth to virtually every node.
During the next ten to fifteen years, convergent technologies will lead to worldwide end-to-end voice,
data, fax, video, and image services.These services will begin between hub cities and work outward
toward suburban and rural areas, much the way telephone service did in the 1 920s and 1 930s. The
global network of networks will be both a transparent communications service and a platform for
content-f illed or content-enhanced services.
ln the future, we will see integrated, not just interoperable networks. By this we mean that the same
network can serve multiple needs, and the network will have a common backbone and shared re-
sources, such as telephony and video-entertainment applications or wireless and wireline applica-
tions.
ln the information-transport industry, a premium will be placed on managerial attributes such as
efficient operations, timely maintenance, and outstanding customer service.The information-trans-
port industry will be the heir to today's telecommunications industry. Other players, coming from
industries with lower standards, must upgrade their capabilities rapidly and adjust their mind-sets.
The cable industry, for instance, has been rightly criticized in this area. Most customers will have a
choice of transport suppliers in the futur.e, and companies will have to provide the type of customer
service that makes those customers feel close to their suppliers.

5.1l.l lnformation : The PC versus TV Debate /

As the PC becomes more passive (receiving video streams like.today's televisions), the TV will get
more interactive; hence, convergence will occur.The convergence of the telephone, television, and
computer will lead to hybrid devices that combine the strongest features of each. Like the television,
the new devices will display video, sound, and text and be familiar and easy to use. Like the tel-
ephone, they will allow people to communicate anywhere. Like the computer, they will be intelligent,
powerful machines that take raw data and turn it into useful information.
We believe that the PC and the television will converge into a device with a f lat screen and broadband
connection to the world. Savvy manufacturers will also design devices that can be customized to
74 / ELECTRONIC COMMERCE

meet the preferences of each consumer and grow with the menu of services on the network.

3.12 Where Today-s Computing lndustry Will Be

Computing will be diffused with distributed memory and processing. Three critical ingredients of all
information businesses will be :
O lnformation Storage (memory),
O Processing, and
O Software-based manipulation
(see Figure 3.1).These capabilities will become widely diffused, utilized by each of three highly
computerized information industries: content, devices, and networks. Because the transformation
will result in three industries (not five), it will enhance operating efficiencies in the process.

/\ €
Netu,orks Devices

PROCESSINC

Figure 3.1 :The New Computer lndustry

Thus, the computer industry as we know it today will no longer exist. Rather than downstreaming into
products, the computer industry will go further upstream to focus on creating superior raw materials.
The two raw materials_components (both memory and processing) and software_will be distributed
through miniaturization and electronic networks. These capabilities will get diffused to the point that
traditional stand-alohe computers will be unnecessary; however, many new services will certainly
emerge (see Figure 3.2).

Figure 3.2 : Possible New Seririces

3.13 Future of lnfornation Presentation

ln this report, we have presented a rationale for transformation, industry consolidation, alliance-
formation, and specialization in the information industry, based on functionality for customers and
markets rather than on internal technology factors. Adopting such an orientation requires that
companies make specific types of investments. lntegrating multiple media can be exceedingly
complex. For example, in networking, different network platforms will have to converge and integrate,
 INFORMATION TECHNOLOGIES / 75
as discussed earlier. ln the same manner, devices must evolve to handle increasingly rich content.
However, we believe that clarity of strategy and marketing capabilities will be as important as
technological strength.
The upper limits of adoption, especially for electronic and information-based products, are typically
underestimated. For example, when the televiSion was first introduced, it was considered a luxury;
the average household now has three televisions. How users interact with applications will also be
key, and the development of intuitive interaction will greatly spur market expansion. For example,
speech-recognition software is becoming lar more lunctional and is routinely used in telecommunica-
tions applications. Thus, it will rapidly migrate to a variety of multifunction appliances.

5.15,1 The lnportance of Alliances

Few current players enjoy large incumbency advantages in making the transition to the new industry
structure, because the required core competencies are substantially different from those that
companies have develfied so far (with the possible exception of content providers). Because nobody
has all of the needed core competencies, the industry will develop via equity partnerships and
alliances.
Rather than ownership, a kieretsu-style modelwill emerge. lf each industry pursues an independent
course, consumer adoption will be slow and fitful. All three industries must work together in symbi-
otic alliances to create the market.This is similarto the relationship between software and hardware
in PC markets or between content and conduit, which was responsible for most of the cable indus-
try's growth.

3.1r.2 Critical Success Factors

Not all corporations are adept at dealing with change of this magnitude. While status quo or reactive
management styles are often successful in stable environments, what will be required of players in
the information industry is anticipatory management (see Figure 3.3). Anticipatory managers align
their company with the direction in which the industry is heading and, when possible, in f ront of the
trend. This requires a clear vision of the future, a strategic game plan, and an underStanding of which
position is to be desired in the future. Based on our analysis of the requirements for success,
companies will have to emphasize the following areas in particular.

3.13.3 Global Orientation

Companies aspiring to succeed in the information marketplace must be globally oriented and create
a global brand. lnformation technology is inherently boundary-free;the boundaries that have existed
so far have been imposed by governments or have resulted from cultural differences. Both of these
barriers are collapsing. ln telecommunications, governments are privatizing state-owned PTTs and
breaking their monopoly. Companies such as lBM, Philips, and NEC are creating a global, rather
than multidomestic, focus.
.t
3.1t.4 )'lanaging Geopolitical Dynamics
While world markets are opening up, regional trading blocs are becoming more widespread. For
example, the three majortrading blocs are expanding their spheres of inlluence.The North American
Free Trade Agreement (NAFTA) will ultimately expand to cover most of the Americas;the European
Union (EU) will rapidly integrate Eastern Europe; and the informalAsian bloc willcontinue to expand
(possibly to include lndia). Globally oriented companies must establish a significant presence within
at least two of these blocs.
 76 / ELECTRONIC COMMERCE

5.13.5 Flexibility, Speed, and productivity

Large companies must be as nimble as small ones in responding rapidly
to fleeting opportunities.
With shifting geopoliticaldynamics, the windows of opportunity aL oiten-brief.
Comianies must be
highly adaptive and learn to reduce their time{o-market with new products
and services. They must
continuously increase their productivity to compete globally. Success will be decided
by an increas-
ingly unforgiving marketplace.

5.13.5 Alliances and Partnering

Companies that are culturally not able to partner with suppliers, customers, and even
competitors
will be at a major disadvantage. Partnering will be required horizontally as well as vertically.
For
example, Time Warner, a contenl company, was instrumental in the deveiopment of the DVD piayer.

t.13.7 Ouality0bsession
Outstanding quality will bEa minimum requirement to be in the running for global business. Companies
must benchmark their performance against the best in the world anO aOopt continuous improvement
processes to stay competitive.

5.13.8 XassCustomization
lncreasingly, companies are called upon to provide customized products to markets at costs
compa-
rable to mass-produced ones. Companies can do this by creating flexible manufacturing
systems
and by investing heavily in information technology. Both Dell and Gateway computers are built to
order and shipped directly to the customer. By avoiding high inventory and distribution costs, both
are redefining how to address the market; both Apple and Compaq are moving to this model.

5.15.9 Weakthroughlnnovation
With the rapidity of technological change in the information industry, the importance of research and
development has never been greater. Technological breakthroughs will be crucial at both the basic as
well as the applied levels. ln other words, companies must periodically break preveiiling price/per-
formance norms. For example, Sony has excelled at creating new products that meet needs custom-
ers never thought they had, with products such as the transistor radio, Walkm an stereos, aid com-
pact-disc players. Leading the markets in this manner wilt be key in the future.

3.15.10 Access to Capital

Competing on a global basis in the information industry will require access to significant amounts of
capital. Obtaining it will require tapping global capital markets (especially for constructing informa-
tion highways) as well as sources such as the world Bank and vendor financing.

5"t5.1I lnvestments in Human Capital

Companies must invest in upgrading and maintaining their numdfr capital, as the half-life of knowledge
in afast-changing environment is remarkably short. Because the'information industry is likely to
evolve along a very different path than envisioned just a few years ago, there are very few off-the-
shelf experts to guide companies into the future. Companies must develop new knowleige and train
their employees on an almost continuous basis.

3.13.12 End-User Focus

All companies in the industry must keep a focus on the customer's customer (i.e., the ultimate end
user). Witlrout such a discipline, product-development efforts will fail. Furthermore, end users pro-
 INFORMATION TECHNOLOGIES / 77
vide the volume and velocity needed to achieve required price/performance ratios.

3.14 Electronic Publishing

The term given to the preparation of publishing rnaterial using exclusively computer hardware and
software.This may be achieved by using desktop systems with relatively simple software ( so called
desktop publishing) or by using proprietary systems or more complex and precise software on typical
microcomputer workstations with standard operating systems.
The three major constituencies, directly or indirectly involved in e-publishing are consumers, publishers
and the technologyproviders, who include the hardware, software and (tele)communications vendors.
From a consumer perspective, there are two kinds of content - short term, dynamic, actionable, such
as news or stock quotes and materialthat is useful or enjoyable lor longer periods, such as reports,
studies, entertainment and literature.Their concerns are easy and cheap access, along with none to
minimal cost for short term content and ease of use for content that requires immersion. The Web,
PDAs and smart phones/pagers serve them relatively well today for the first kind of content.
This is definitely not the case for the second, long life cycle materials. The narrow band public
telephone and wireless networks we have today can't handle high volume data transmissions reli-
ably. They were not designed for it. On the other hand, ihe emerging broadband services, such as
shared use cable access and DSL are immature technologies, caught in the middle of competitive
and political battles of all kinds. lt's a total mess out there and until a stable broadband infrastructure
is created, the whole new lnternet economy, including e-publishing, will be constrained. Hence the
need to deliver rich content on CD and DVD will be with us until ubiquitous access to high speed
public networks is assured. Obviously, this is the major issue for technology companies.
And to say that it is cheap and easy to read a document of more than 50 pages from a CD is just ain't
so. We all know the routine: it takes 5 to 10 minutes to turn your computer on, put the CD in, load
plug-ins or players and find what you want on the screen. During this drawn-out process you may
even get messages about the need to update this or that piece of software.There goes another 5 to
30 minutes. You need to do a search too? Here is another challenge, due to limited or incomplete
indexing and inconsistent search methods.
So books, high quality content magazines and newspapers thrive today and will be around tomorrow.
At least until we all bathe in wireless broadband data streaming down into our e-paper, a thin sheet
display delivering news, movies, TV broadcast, the tax code (now that will be a challenge) and
everything else digital under the sun that we can afford to pay for, either with our time or our money.
Obviously, issues in the last two paragraphs are the concerns that publishers need to address,
together with technology providers. How well we'll do that will determine ihe face and shape of things
to come.
E-publishing will become prevalent in 5 to 10 years, as bloadband
broadband access becomes
becomes cheap
cheap and
universal. Once that happens, the next phase, the age of4ully immersive and interactive environ-
ments and content within these constructs will be upon us, as We'll have the local computing power
to render them in real time. The interfaces will still be 2D in ten years, so they will be pretty similar to
what we have today; beyond that, things will become really interesting, as we enter into 3D environ-
ments, be they miniaturized, individualized cr built for groups or whole cities. StarTrek Holodeck,
here we come!
Computer Assited Publishing
The combination of a computer and software that allowed users to compose complete documents
without cutting and pasting, and a printerthat could produce documents that rivaled phototypesetting
78 / ELECTRONIC COMMERCE
in quality, revolutionized the graphics and printing industry almost overnight. lt eliminated manyof ,-
the manual steps previously necessary to prepare materials for printing, and allowed for the easy
manipulation of both text and graphics when changes were necessary. Although many in the printing
industry were skqptical of the new technology at firstt it became clear there were compelling advan-
tages to using DTP systems in many situations.

,
 t

CI'pr* 4
GLOBAL IIVTER]VET

4.1 Wodd Wde Web : The Simplified Access to the lnternet

The World Wide Web is a global, seamless environment in which all information (text, images, audio,
video, computational services) that is accessible from the lnternet can be accessed in a consistent
and simple way by using a standard set of naming and access conventions.The basis forthe Web is
the lnternet.The Web is built on the lnternet, and makes use of many of the mechanisms the lnternet
provides.
You can access sites all over the world. You can connect from your desktop to thousands of Web
servers simply by "clicking" on a selection (the underlined words), or by entering a specific address.
You can connect to many different types of systems - and not be aware of the differences
You can access many different types of information - text, images audio, video, computational serv-
ices - again, usually with no extra work on your part.
The lnternet is the physical aspects - computers, networks, services. lt allows us to connect to
thousands of other computers across the world. But it doesn't mean that those sys'tems users' can
look at, and understand, the information there.
The Web is an abstraction and common set of services on top of the lnternet. lt is the set of
protocols and tools that let us share information with each other.
The lnternet provides access to mail, interactive conferences, network news, and is rich with infor-
mation resources....but the lnternet can be difficult to use and understand. The World Wide Web
makes it easier to use the lnternet:
D lt provides a graphical interface (on many platforms)
O lt supports multimedia (sound, video, as well as graphics)
tr lt uses the same tools as the lnternet, but hides thelgly details that user has to go while
working through ftp,usenet or telnet
O lt is based on standards/conventions, so sharing is much easier than before allthis makes
it easier to access information and makes it easier to provide information
tr The wide and rapidly growing amount of information available.
tr The volume of information available is huge, and growing rapidly. Many of the world's major
companies, universities and research organizations are on the Web today, with many oth-
ers joining daily.
The various functions of the web are illustrated in Fig. 4.1.
80 / ELECTRONIC COMMERCE

0a$c Wsb Srowsei Rmetions

llrrlgaflorAtde Ssrrlcos
- 0p6lr -rH
-fttd - sattc$*
-h*rv - vlw rowar
- b*cldoffi$d -mri &,
- holllnks/bookm*lc - oPCn ei"'l
- rdord
User he$entallon 0ollons
-ffil
- colorl
-'*
- lr?lp

@
-dB
- hnr&ron/off

Pagee cen soiltaln a varlsty of

ffi thhfooilnrlrgcc

f,fii*l*t.0"
hdtmt

Fig.4.1 : Functions ol aWeb Browser

4.2 History of Web Growth

The World Wide Web (WWW) is simply another approach to offering information on a computer
system on the lnternet. lt was developed at a particle physics laboratory in Cerne, Switzerland.
The Web was initially conceived byTim Berners-Lee and others at
inlormation on many different, distributed, computers. Berners-Lee had this idea of universal reader-
ship, which is that any client should be able to read any information. Berners-Lee developed the
basis ideas, which others have since added to.
Then those involved agreed to work by a common set of principles:
O There would be no central control.TheWeb works because people work within the agreed-
to guidelines. As part of this the Web ethic is that anyone can publish, and anyone (who is
authorized) can read information.
O AllWeb servers would use the same protocols/mechanisms....
tr Http, a fast, stateless, extensible transport mechanism would be used to communicate
within the Web
O Httpd, or http daemons, would be the base Web server - receiving messages and providing
data as requested
tr URLs (Universal Resource Locator) would be used for Ditwork- wide addressing
A AllWeb browsers would use the same basic language - HyperText Markup Language HTML
tr And built into the mechanisms is support for format negotiation.
Web clients tell servers what formats they can handle, and Web viewers allow basic browsers to use
different formats.
The Web was developed with the concept of "universal readership" any participating system should
be able to read the information on any connected system using a common set of tools browsers
servers/gateways addressing schemes common protocols format negotiation.
 GLOBALINTERNET /81

The lnternet is growing at a phenomenal rate (no one knows exactly how big it is, but as of May 25,
1996 lnternet Solutionl estimated there were 59,628,024 people on the lnternet, and an estimated
304,177 World Wide Web sites on the lnternet.
The World Wide Web (WWW) was originally developed in 1 990 at CERN, the European Laboratory for
particle Physics. lt is now managed by The World Wide Web Consortium, also known as the World
Wide Web lnitiative.

Leading the Web fo ifs Full

Patential...
The WWW Consortium is funded by a large number of corporate members, including AT&T, Adobe
Systems, lnc., Microsoft Corporation drnd Sun Microsystems, lnc. lts purpose is to
promote the
giowth of the Web by developing specifications and reference software that will be f reely available to
6u"ryon". The Coniortium is run by MIT with INRIA (The French National lnstitute for Research
in
computer Science) acting as European host, in collaboration with cERN.
The National Center for Supercomputing Applications (NCSA) at the University of lllinois at Urbana-
Wide
Champaign, was instrumental in the development of early graphical software utilizing the World
Web features created by CERN. NCSA focuses on improving the productivity of researchers
by
providing software for scientific modeling, analysis, and visualization. The World Wide Web was an
distributed
obvious-way to fulfill that mission. NcsA Mosaic, one of the earliest web browsers, was
f ree to the public. lt led directly to the phenomen tl
growth of the World Wide Web'

4.3 Working of lnternet Web

PROT{5ER
5otrtvARE

The World Wide Web is by far the most popular part of the lnternet. Once you spend time on the Web'
the graphical portion of the lnternet, you will begin to feel like there is no limit to what you can do.The
Web aliows rich and diverse communication by displaying text, graphics, animation, photos, sound
personal
and video. So just what is this miraculous creation? The Web physically consist's of your
 82 / ELECTRONIC COMMERCE

computer' web browser software, a connection

to an lnternet service provider, computers called
servers that host digital data and routers and switches
to oirect tne flow of information.
The web is known as a client-server system. Your
computer is the client; the remote computer that
stores electronic files is the server. Here's how it works:

tr Let's say you want to pay a visit to the the Louvre museum
website. First you enter the
y"b orowsei 1moi" this in a whire). rhen your
#".J:::
browser :::,T:_:t;ll".y:p'll"_,Iy_?I
requests the web page from a web server rocatJin "i"rtparls. The
sends the data over the lnternet to your computer. Your web Louvr"'. .'"fi:;.
browser interprets the data and
displays it on your computer screen.
o The Louvre's website also has links to the websites of
other museums, such as the Vatican
Museum. With a click of your mouse on a link, you can
web server in Rome.
".a"ar-tn"
llial-up mnnsctifii
bo dam S...t...0...W?
D .the webtoget his feature allow
he Web to be li
en them' on the
through pages
You at that Par-
s i. cJmmo"nfy
software, such as Netscape Navigator or Microsoft
rnternet Exprorer,
does your web browser distinguis[ between weu pages
and other rires
are written in a computer ranguage cailed HTMr-,"wrricn
stands for

The lsP in turn is connected to other providers, and

eventuaily to one of the big carriers, who have
huge networks that use fiber optic cables running
at 45 mb/se"ono 6n"." Lt"rr"o to as T3s).
At the other end there is probably "r"
you made to a specific web address,
servei
and who will route it to the
does its magic, and sends you back
t
what you asked for - again using
work we just went through.
 GLOBALINTERNET /83
The Web has a simple architecture. Clients (now any terminal with web browser) send messages to
Web servers, which are referred to as HTTP daemons (or HTTPD).The httpd servers are responsible
for sending the requested information to the client (also known as browsers), who are then responsi-
ble for presenting the document to the user. (See Figure 4.2).

Request
File

Give
File

Request
Print Job

Spool
and Print Job

Fig.4.2 : Messages from Webbrowser

These messages can be viewed as short bursts - the client send a request to the server, the server
sends back what was requested, and the connection is ended. This simplifies communications, but
makes it difficult to handle longer-lived transactions, as the server does not retain context informa-
tion, i.e. it does not necessarily "remembe/'the messages it has received.
Let's look at that simplified view in a little more detail. This has the same basic components, but
we've now added a new server path, which can be one that goes through a firewall, and/or which
accesses applications.
BRowsRs
"@'FJxl
rwd/ctxl4l"
VIEIVR,S

MME
Nrrscs
Mos^rc
Lvro<
MecWrs
Crr.ro

rIns,wt
. no cntr'alcon6pl ' addressing sbndard
. anyone cancdte, 'mulflIrle ammethods
anyme(autborlzed) r€ad .formatnegotiadqr
' dlentlsel*r . rqtns snd eJderdotrs

' orsident protocds . m all major platforms

Fig.4.3
84 / ELECTRONIC COMMERCE

A firewall is a mechanism to control access to and from Web servers. Most companies have firewalls
set up to prevent access to their internal servers from external clients.
There are many different clients (Web browser), such as Netscape or Microsoft's Explorer. The Web
client usually sends an http message, but as the diagram shows it can send any lnternet message
(e'9. ftp, file, gopher, wais). The servers can be behind a firewall, which is a way to prevent access
to a server. Servers can include gateways which allow them to "talk" to applications. These gateways
can be in any computing language, the most common being perl and TCL, but C and other languaEes
are also used. Finally, the components know how to find documents because they all use a standard
addressing scheme, or URLs.
Note that there is no central control. Anyone can create a Web server, and for the most part anyone
can read what is online. The reason it all works is because everyone is using the same set of
"standards".

4.4 Web Browsers

A web browser is the software program you use to access the World WideWeb, the graphical portion
of the lnternet. The first browser, called NCSA Mosaic, was developed at the National Center for
Supercomputing Applications in the early '90s. The easy-to-use point-and-click inter{ace helped
popularize the Web, although few then could imagine the explosive growth that would soon occur.
The World Wide Web clients-the software that enables you to access resources on the Web-are
called browser.The software that enables you to go from one resource to another by following hyperlinks
is known as a Web browser . The most popular browsers - such as *Netscape Navigator
tr lnternet Explorer,
D Mosaic
Organisations to access intranets as well.The basic capabilities of a browser are to retrieve docu-
ments from the Web , jump to links specified in the retrieved document , and save and print the
retrieved documents.
There is no standard way of viewing or navigating the Web. A variety of Web browseis exist. Most
browsers have most of the functionality, although there are some differences in levels of support and
overall performance. Most browsers are still being updated and improved, with new releases every
two or three months. Each computing platform will have a number of browsers available on them as
detailed in section a. including character cell browsers like Lynx for terminal-based users (without
the graphics support, of course).
One of the key concepts behind the Web is that the user should be able to controlthe presentation,
so most browsers provide ways to tailor the interface (e.g. size, color and type of fonts, whether
images are always shown, whether traversed links are highlighted, and so on).
lf the computer you are using cannot handle graphics, you will need,to use a nongraphical browser.This
type of browser will be able to retrieve documents that contaln graphics,but will just ignore the
graphics and display the rest of the document.The Web is capable of offering full multimedia ,but if
your computer can't deal with all the media ,you can still access the text material.Lynx is a popular
nongraphical browser.
The resource requests sent by the client to the server are in the form of Uniform Resource Locators
(URLs). URLs are strings of characters that determine which of the thousands of servers to connect
to and which resource on that server to find. After the server locates the resource specified by the
URLs, the server sends the resource (thedocument) to the client, which displays it for you to work
with, print, or save.
 GLOBALINTERNET /85
The documents sent by the server to the client are written in a language called HTML, or HyperText
Markup Language. HTML is a language designs to transmit documents that can contain different
media formats in the same document: text, graphics, movies, sounds, and hypertext links to other
documents and other resources.YourWeb browser receives the HTML, allowing you to move around
in the document and follow the hypertext links to the linked-to-documents.
The Web uses a writing technology called hypertext .Traditionaltext , such as a paper document , is
linear. You begin at the beginning and finish at the end , and there is only one order in which to read
the document - the order determined by the author . Hypertext f rees the reader from the linear nature
of text.
Just as you can access Gopherspace through a Gopher server or client, you can access the Web
through something called a "Web browser." A Web browser can read documents, fetch or download
documents, access files by FTB read Usenet newsgroups, TELNET
almost everything that we have talked about in the past 22 lessons can be done using only a Web
browser!
Hypertext uses links , also called hyperlinks. You can be reading a hypertext document and come
across a link. lt is then your choice to continue in the document or follow the link . This link could go
to another part of the document or to another document entirely. lf you have many documents , all
linked to many other documents , you have a network ( or web ) of text , with no fixed beginning , no
fixed ending , and no fixed way to browse the text .
Data is moved within a network or between networks according to established rules, called protocols.
The protocol of the World Wide Web is HTTP of Hypertext Transfer Protocol.
A document (or f ile) you create that can be accessed by a Web browser is called a Web page or Web
site. The tool you use to build your Web pages HTML. When you "surf the Net" with a Web browser,
you don't want a Web page of your own, you don't have to create one in order to use and enjoy the
Web.You learn more about creating your own page later in this lesson.
Java is a programming language that can be used to add dynamics to a web page.The java program
is included in the Web page in a binary form that makes the program execute regardless of what
computer it is on. Java programs can add animation, sounds, or interactive programming to a Web
page.
Although many different browsers are available, Microsoft lnternet Explorer and Netscape Navigator
are the two most popular ones. Netscape and Microsoft have put so much money into their browsers
that the competition can't keep up. The pitched battle between the two companies to dominate the
market has lead to continual improvements to the software. Version 4.0 and later releases of either
browser are excellent choices. (By the way, both are based on NCSA Mosaic.)You can download
Explorer and Navigator for free f rom each company's website. lf you have one browser already, you
can test out the other. Also note that there are slight differenocs between the Windows and Maclntosh
versions.
You can surf to your heart's content, but it's easy to get lost in this electronic web.That's where your
browser can really help. Browsers come loaded with all sorts of handy features. Fortunately, you can
learn the basics in just a few minutes, then take the time to explore the advanced functions.
Both Explorer and Navigator have more similarities than differences, so we'll primarily cover those.
For the most up-to-date information about the browsers, and a complete tutorial, check the online
handbook under the Help menu or go to the websites'of the respective software companies.
 86 / ELECTRONIC COMMERCE

4.5 Surfing the Net

Probably the easiest thing to do on the lnternet is to follow hyperlinks in an almost-random fashion.
This is sometimes referred to as "surf ing" the lnternet, or Net. There are only two things you need to
keep in mind. First, be adventurous. Try unusual links; go off the beaten path. Second, have pa-
tience. Net
pages and never find anything interesting. But, there's always that time when you seem to land on all
of the right sites.
You've made your first connection to your lnternet Service provider, and now you are ready to begin
surfing. The question is where do you start?
Most web browsers, when you invoke (run) them, will come up to a default webpage.That is, they will
automatically take you to a specific place on the lnternet, a place that's been pre-programmed by the
browser company or your lSP, for you.
When you are surfing the web, you can choose from millions of websites to visit.Your browser has
several ways of allowing you to do this.
The first step to insuring a more productive life on the lnformation Superhighway is picking some
resources and bookmarking them. ln order tv locate a particular resource on the lnternet you will
need to know its address. An address can be considered the location of a resource, and all items,
including you, have an address if they are on the lnternet. Just as you have an email address which
is different from everyone else, so too, can there be sites within sites, resources within resources.
Each type of resource has a slightly different format address and name, but the three most common
addresses you will have to dealwith are EMAIL, FTP and www addresses.
An email address goes to a specific person. i.e.
JainwkPubli cG anysi te . com
The FTP address usually addresses a system as a whole unit. i.e.
ftp. anysite. com
The WWW address is similar to an FTP address in as much as it reaches out to a system, but it also
specifies exactly where on the system to go. i.e.
http / / www. anysite. con,/mypage. htnl
;
While the addresses for FTP sites and Email addresses are simply called "addresses", a WWW
address is called a URL or Universal Resource Locator. For a more detailed description of the term
URL, see our glossary.
There are numerous resources on the net which everybody needs from time to time.The big problem
is knowing which resource you need. While everyone has certain specific needs, there are a few
common resources which everyone should use.
/
4.6 Searching the Web
With hundreds of millions of web pages online, you could spend a lifetime surfing the Web, following
links from one page to another. Amusing perhaps, but not very efficient if you areafter some spec1i-
information. one of the biggest complaints we hear concerns the difficulty of targeting information.
Where do you start? Searching the lnternet requires part skill, part luck and a litile biiof art. Fortu-
nately, a number of free online resources can help with the hunt.
By now you should have several sites bookmarked. So what's the next step? Simple, now its time to
 GLOBALINTERNET /87
start looking for information. We have several search engines bookmarked but that's only the first
step.
What can you search for? Nearly everything! lt would be improper to state that the lnternet contains
the sum total of all human knowledge, however its getting there very quickly. Use one of your new
BookMarks and surf over to one of the search engines. Here you will be presented with a webpage,
which has a field in which you can enter terms to look for. All of these systems have a help section
or FAQ clearly marked, so if you get into trouble, you can either hit your "back" button or try the site
help file.
You begin your search by entering some sort of search criteria into an editable field on your screen,
then pressing the search button.
Searching the lnternet for some particular information can be both a frustrating experience and a
rewarding one. lts best to start with a particular search engine or directory, looking for what you
need. Remember that there is a considerable overlap between the contents of one engine and an-
other, so you willfind similar references among them.

4.7 Search Engine

A search engine is a service that indexes, organizes, and often rates and reviews Web sites. lt helps
you find the needle that one Web site you've got to see in the lnternet haystack. Different search
engines work in different ways. Some rely on pecple to maintain a catalog of Web sites or pages.
Some use software to identify key information on sites across the lnternet. Some combine both
types of service. So when you search their "holdings," you're bound to get different results.
Search engines are online utilities that quickly search thousands of Web documents for an entered
word or phrase. Although there are some subscription-based search engines, most operate off of
prolits from advertisements. lt should be noted that no single search engine has the contents to
every Web page on the lnternet. lnstead, each search engine has the contents to only the Web pages
that are manually entered into that search engine by the Web page operators. This is why you might
get different results from different search engines.
Search engines are usually accessed through Web browser software. Each search engine provides
different searching options and has its own look. Search engines also differ greatly in the number of
resources they allow you to search some search engines have both searching and browsing capabili-
ties.
Find the Web sites and newsgroups that interest you. You may find, as many people do. that it's f un
just to wanderor surffrom site to site, going wherever the links take you. But if you want to find
something specific and find it as soon as possible, you need to use a search engine. Here are the
basics of searching.
No search engine keeps track of all the content on the lnternet. Even the major search engines such
as MSN Web Search, AltaVista, lnfoseek, Lycos, an$ Snap won't give you everything. (Some stud-
ies indicate that even the top search engines find l5ss than half of what's really out there!) So try
several search engines to see which produce the most useful results forthe types of information you
usually look for. Whenever a search fails to produce the results you wanted, try another search
engrne.

4.8 Categories of Search Engines

Major search sites generally provide more than a search engine for finding Web sites. They also
allow you to look up information such as recent news stories, newsgroup postings, reference material
 88 / ELECTRONIC COMMERCE

maps), and e-mailaddresses, street addresses,

$1*tr"*t:ffiffi,1i:i.t"and and tetephone numbers

Search tools can be categorized as

O Webcrawlers
0 Subject directories
D Web databases : lndexes

4.8.1 Web Crawlers.

A web crawler (sometimes called a spider)
is an automated search engine. when
a resource(website) to the search enginesit someone submits
sends rr"ir, oripowerful program back to
the submission which scans the site Io, ror" resources. " the site of
lf it finds additionai r".ori""., it catalogs
them as well as the original resource.The advantage
if the site is not dedicated to that specific
ort is i" you find information in a site, even
type of information.'For ""nexample, locating information.on
Airplanes in a site about NASA space activiiies.
The main Jrawoact to this type of search engine
the tendency to catalog too much information. is

A couple of examples of the best crawlers.are;

I HotBot (http://www.hotbot.com/)
:A l1!os99t (http://ultra.infoseek.com/)
Alta Vista (http://www.altavista.digital.com/)

4.8.2 SubjectDirectories.
Directories are the yellow pages o y tha
submitted to them. Here you will , but
en
he
information didn,t include all of the
for. maY ng

A couple of examples of Directories are;

YAHOO!(http://www.yahoo.com)
: Linkstar(http://www.linkstar.com/)
IA lnfoHiway (http://www.infohiway.c om/way/index.html)
subject directories are manually compiled by staff
of the directory
and by users who submit entries.
web databases are completed by soitware'" robots,"
or int"rr,g"'nt agents, that roam the web and
collect information for the databises. both approaches
products' The search engines highlighted
to selrch engines have created effective
here are currenfly popular or have historical
ever' new search engines may be worth using, interest. How_
so be watc'hiffir trem.
Directories, such as yahoo!, are
websites under
simirar categories, such as rnter s' The results of
websit
your search will be a list of
u are interested
in rocating the site for the Louvre museum,
for instance, try using
4.8.3 lndexes
information, such as biographicarinformation
about Leonardo da
go, because they search allthe contents
of a website. lndexes
iders or robots that scour the rnternet, anaryzing
dexing all of the words. -.ttion. of web
 GLOBALINTEBNET /89

lndexes like AltaVista and Lycos find individual pages of a website that match your search, even if
the site itself has nothing to do with what you are looking for.You can often find unexpected gems of
information this way, but be prepared to wade through a lot ol irrelevant information too.
Search results are usually ranked in order of relevancy-the number of times the search terms you
used appear in a document, or how closely the document appears to match a concept you have
entered. This is a much more thorough way to locate what you want'
The directories may not be as up to date, but.when you are looking for specific inlormation, it's
usually easier to try a directory first. lf that fails to yield results, try one of the search engines.
1. MSN search
2. Yahoohttp://www.Yahoo.com
3. lnfoseek http://www.infoseek.com
4. Excite httP://www.excite'com
5. Lycos httP://www.lycos.com
6. AltaVista http://altavista.digital.com
7. Webcrawlerhttp://www.webcrawler.com
8. HotBot httP://www.hotbot.corh
9. Dejanews
10. Compuserve
11. Metacrawler
12. Magellan http:i/www.mckinley.com
14. OpenText lndex http://index.opentext'net
15. Snap
16. Lynx
17. Opera
18. Accufind http://nln.com
O MSN search
Using this search page, you can conduct a basic Web search or an advanced search, specifying one
or more of the following: the type of information, the language, the origin, the domain, the date
created, and the types of files contained in the Web page.
O Yahoo!
This is an all purpose search engine that provides a wide range of indexed links. This was the
premiere search engine a lew years ago, but has digressed considerably over the last 12 months.
Several links are old and no longer in existence, and it is almost impossible to get a link added to
their database. This is however, a good location to start, because they have the most comprehen-
sive system to cross-reference their lesser results with other more up to date search engine
servrces. /,
This is actually a directory rather than a search engine, meaning humans compile and categorize the
sites it searches. So you may get fewer results. But Yahoo! makes it easy to search for items by
category and to continue your search using a search engine, if you want to.
Yahoo!, the most popular hierarchical directories, is a good starting point.You can search by subject,
or like the other search engines, you can specify a search term.Yahoo! works well if you're searching
for general information on a subject, but because of the way information is indexed in Yahoo, you
probably won't get great results if you're looking for something specific or very recent.
 90 / ELECTRONIC COMMERCE

O Yahho's People Search

Looking for an old war buddy? old class-mate? Childhood f riend?
Movie star? This is the great place
to start' You'll have to have at least a clue where the person lives, but
even if you don,t, you,ll be
amazed at what you lind.To the degree you can enter in information
about the p"r.on yor,re looking
for, you will have a greater chance of finding them. This site is owned
and operated by yahoo!.
A Yahoo's City Map
Have a party to go to, but you don't know how to gei there? This search
engine will use an incredible
amount of city map information to find exactly how to get there. You
can even find data on to and
from routes. This site is owned and operated by yahooll
O lmagesurfer
owned an operated byYahoo!, this site allows you to find images of nearly anything. you,re
lf looking
for clipart, they have your image!
O Yellow Pages <http://yp.yahoo.com/>
Looking lor a company that produces a particular product? Then this search
engine is for you. Just
like your local Yellow Pages, this book cdntains everything. Owned and
operaied by yahoo, this
service can come in handy if you're rooking for specific proJucts.
O lnfoSeek
This is an all purpose search engine that provides not only a global search
engine for any subject you
might be looking for, it also provides an online Dictionary and-th"sarrrs for quick
word look-ups. The
results are rated and adding a URL is very simple.
lnfoseek's search engine boasts an extensive catalog of sites. lnfoseek has
a directory, too, that
categorizes sits by topic using software. Some sites hive been reviewed and
are recommended.
lnfoSeek, part of the Go Network, searches by keywords, scanning the
information in its database.
With lnfoSeek, you can search a variety of data6ases, including the Web
and Usenet. lnfoSeek
gives a score to your search results and returns the,,best,'matches
to your query.
O Excite
Similar to Yahoo!, this is an all purpose search engine that is very up to date
and very easy to add a
URL to' The search results are very effective and come with a percentile
rating of how close their
results match your search words.
It is a hybrid search engine, Excite fulfills the traditional search
engine definition (it is always visiting
web. sites and cataloging them using a software program) but
alsoias a directory-a subsection of its
cataloged sites, which have been reviewed Uy peopte.
An interesting feature of Excite is its "Confidence Rating," a percentage
rating given to each of the
results it returns; a higher percentage indicates a closdr matchJo your
origiial query. ln addition,
Excite gives you the option to view more documents similar toihose
desJribed in that particular
result. Finally, Excite is available in a number of languages.
D Lycos. (tyco.bmp)
Like Excite and lnfoseek, Lycos is a search engine with a directory,
organized by subject. you can
also search the Lycos service "Top S"/oi' sites considered by its reviewJrs
to oe amoni the top five
percent of sites on the lnternet.
Lycos is a web-indexing robot. That means Lycos software robots
actually go out and travel the
 GLOBALINTERNET /91
lnternet every day looking for new Web, Gopher and FTP sites. Lycos searches by keywords, as-
signing a percentage rating for relevancy of each search return. An interesting feature of this search
engine is the ability to locate pictures and sounds on the Web.
D Alta Vista

This was the premiere search engine of alltime. Created by the Digital Corporation, Yahoo! uses their
index databanks for some of their information, although it would appear that Yahoo! no longer uses
their services. Alta Vista is a very large source of information. Results vary in accuracy, but you can
usually find what you're looking for. Expect to sort through several links that don't apply, but this is
the price of a huge database.
At AltaVista, you can search for keywords or type your query in the form of a question. Other
features include Babelfish, which translates sites in several languages; Photo Finder, which searches
for images; Family Filter, which helps you limit the types of results produced by search.
AltaVista creates complete indexes of every word on every web page or Usenet newsgroup it en-
counters, allowing you to make highly targeted searches. AltaVista searches by keywords, which it
derives from the text of a web page. lt indexes millions f,web pages and articles from Usenet.
newsgroups. AltaVista updates its inlormation constantly and each page returned from the search is
given a date and time from AltaVista's most recent update.
D Webcrawler
Webcrawler has a slightly different spin than other all purpose search engines, in that it offers links
into Yellow Pages, Stock Quotes, Classified's, Weather, People Finding, and many other interesting
services. lf you don't find what you're looking for, they have a cross-reference link to Excite for more
searching. Webcrawler also provides a service that allows you to enter a profile of your favorite type
of websites to surf to. Each time you visit, you can view only the pages that you like. Webcrawler
 92 / ELECTRONIC COMMERCE

HotBot

HotBot keyword searches of websites and newsgroups.

are ran search results
e rating. You can search for images, video and
search Mp3 files and also

O DejaNews

ch newsgroup postings. lf you're not familiar

c bulletin board. people discuss all kinds of
looking to get into a heated discussion, this

O CompuServe
compuserve is a commercial network based in US. lt uses
telephone lines and microwave for
communication' compuserve user can easily communicate
with each other, around the world. Fol-
lowing are the services offered by CompuServe
(a) Electronic Mail box for message transfer
(b) Bulletin Board Services
(.) News report alongwith report on sports and weather
(d) lnformation on computer hardware and software.
O Metacrawler.
Rathqr than keeping its own database of Web sites, Metacrawler
conducts your search simultane-
ously on several search engines, including Excite, lnfoseek,
iy"o., and yahoo! This takes a litfle
longer than using just one search engine, b-ut it's likely to yieti
a more
comprehensive set of results.
A lmage Surfer
owned an operated byYahoo!, this site allows you to find images
of nearly anything. lf you,re looking
for clipart, they have your image!
D Snap
snap is a director tory team has chosen, divided into topic areas,
and summarized' oivioeo into more specific subjects to help you
locate the type of picks are marked with a,.Best,,icon.
O Lynx
.
Lynx is a keyboard-orie.nted telt-gnly web browser that was developed
at the University of Kansas
primarily for students who used UNIX workstations. lt has
also beln rewritten to run on vrus operat-
ing systems for users of VTl OO terminals.
ll you use the UNIX shell interface and your access provider offers it, Lynx
rnay be interesting for
you since it has a succinct key- (not mouse-) driven user interface.
tntoimation including
where to download it, is available at the official Lynx server page. "utril-vn*,
Ly1x32 is just like its Unix and Dos counterparts. lt is a console application
gx/NT TCP stack. and uses the windows
 GLOBALINTERNET /93
o Opera
A web browser that requires very lew resources and delivers most of what the major browsers
deliVer.
Another recent addition is NeoPlanet which is a relatively small download (1.2M). lt is actually an
add-on to lE (3.02 and above) but makes browsing much easier, especially for beginners. lt comes
preconfigured with over 1000 bookmarks organized into "channels" (NOT like Active Channels, just
an organizational metaphor). lt also includes an integrated mail client and a modem speed booster.
lnterestingly, it also allows you to change the look of the browser to something completely unlike
regularWindows.
Opera provides some advantages overthe two most popular browsers from Netscape and Microsoft.
Much smaller in size, Opera takes only a few minutes to download.The feature you notice first after
installing Opera is a menu or "hotlist" that serves as both a directory to the Web and a bookmark f ile.
O Netscape Communicator/Navigator and Microsoft lnternet Explorer
Netscape and Microsoft lnternet Explorer have pretty much the same features on all ol the operating
systems for which they are available. Netscape is locked in a features and market share race with
Microsoft lnternet Explorer, which surpassed the former in popularity in 1999, and is the default
browser in MacOS 8.5 and up.
Both products are free, and feature HTML 4.0, Java, JavaScript, Cascading Style Sheets, and
various extensions that may or may not work with other browsers. Netscape Communicator also
includes a suite of additional applications for conferencing, reading newsgroups, receiving and send-
ing email and so on (Microsoft provides this separately in Outlook Express). At this time, there are
no other browsers for the Macintosh that have quite as many features as these two market leaders,
though iCab is catching up.
O CyberDog
Apple Computer's CyberDog is based on Apple's OpenDoc technology, which is designed to allow
programs to be constructed from reusable components. Although interesting to those who want to
and up to date as the Microsoft and Netscape products. CyberDog has a small but enthusiastic user
base, and many user sites have sprung up since Apple took the official CyberDog site down.
D iCab
While still unfinished at present (09/99), iCab looks like it's going to be an excellent browser for the
Mac. lt keeps bloat down and performance up by focusing on its main task (web browsing) without
adding in a lot of bells and whistles, but it is surprisingly complete at what it does. lt is currently
stable and displays most web pages correctly, but does not yet support JavaScript. However, it
supports Java through Apple's MRJ. Available in both English and German versions, for 68K and
PPC.
o WannaBe t'
WannaBe is a small, very basic text-only browserfor PowerPC and 68k Macs. lts main advantages
are its lightning speed and low memory footprint. Still in beta stage (as of 09/99), it already works
well for those who want to check web pages very quickly.You can download either the very latest, or
a proven stable version. There is a mailing list on which announcements of new versions appear
regularly.
O Grail
Grail is a web browser written in the Python programming language. Grail supports full HTML 2.0,
 94 / ELECTRONIC COMMERCE

including images, forms and imagemaps, and many HTML

3.2 features. lt uses asynchronous docu-
a.no savins docum-enrs, searchinj, bookmarks,
:H:llii:9:::T-"-r!,p_rlltrlg
also supports frames' client-side imagemalps, f ile upload in forms]support
nistorv, ano more. tt
for JpEG, TIFF and XBM
images, image printing, and tables
lwitnin the limitaiions of the Tk ioolkit). pages can contain applets
written in Python (instead of Java).
Here are two guidelines for picking a search engine:
tr lf you're looking for a as how to buy a personal computer, use
a search engine that t lts of higher quatity 1r.r"rry1n" type that
relies on people to ca
o lf you're looking for a rare topic, such as 19th-century Hungarian
authors, use a site that
may be less discriminate but yields more results (usually th-e type
compiteo oy a software
program), such as Excite.
There are several search engine website companies on the internet.
Each company tries to index
their information more efficiently than the next. Some sites contain
indexed information about all
topics, while other companies index only specific information, like people's
names and addresses.
At first, you might feel as if the lnternet has so much information,
and in such a disorganized mess,
that it is impossible to find what you're looking for. well, there are
what you want: Web search engines and Web guides.
Listed below are some search engines available on the web. This is in
no way intended to be a
comprehensive list. Rather, it is to provide you with the names and
URLs (addresses) of a few
reputable search engines. Feelfree to try them o t...

4.8A General5carch
Whether you want to search for information about cable cars, investments
or any other subject,
here's a round-up of some popular search engines. Remember, allweb
search tools are not alike.
Each uses a different methodology, so your results will vary. You may not
always find what you,re
looking for on the first try.
Create a folder called Search Engines under your Bookmarks or Favorites
menu. Now add these
engines to the folder so you can easily accessthem whenever you want
to do a search.
Let's say we are looking for information on a 1977 Jeep CJ-S, perhaps
a supplier of parts for that
automobile. Going to a search engine like Yahoo, you can search theiidatabase,
but the real ques-
tion becomes what keyword do you use? Yahoo allows only one keyword, or phrase
a in their ad-
vanced search optidns. Start by iooking for "CJ-S", but in alilikelihood, you
won,t find it. lt,s way too
specific. You need to exercise care in picking search terms. For example,
looking for items that
weigh a "ton" will also return references to "washir gton", ,,Alexander Hamilton,,etc.
Having not{ound anything listed under CJ-5, or perhaps finding listfngs, but of
the wrong type, widen
your search by looking for "Jeep". Here you may find several dealeis
of Jeeps, p"rr,Jp. even the
parts supplier you need. You may also find someone's Homepage where
they wriie about owning a
jeep.
As you can see, the steps to finding your desired information are:
o Start Specific, (i.e. Search for "CJ-5',.)
o Broaden your search if you don't find any reference. (i.e. search for,,Jeep,,)
D Broaden further if you still don't find anything. (i.e. search for,,Automotive';)
 GLOBALINTERNET /95

4.8.5 Example of ),lultiple Serching: Cable Cars to the Stars

Let's perform an online search using three popular search engines-Yahoo!, AltaVista, and Ask Jeeves-
qo you can see how they work and how you can develop an efficient search strategy.
Here's the challenge: You are planning a trip to San Francisco and you've always wanted to ride on a
cable car. Will they be running in January? How can you find out?
The first thing to ask yourself is this:"How would I get this information in the realworld?" Perhaps you
would consult a travel guidebook. So let's start with that premise, using Yahoo! ln the search box,
type in San Francisco travel guide. Be as specific as possible to narrow the scope of the search.
Just entering "San Francisco" will result in thousands of results. By adding the additional words,
'travel guide," there's much fewer.
The search returns twelve categories, one of which, San Francisco:Travel, looks very promising. By
clicking on this category, you get a list of about 20 related websites, along with a brief description of
each one. Now you have to visit each site to see if there's any information about cable cars.
What happens if you just do a search for "cable cars?"Yahoo! returns a list of categories with only a
few related to San Francisco. So much for directories.
Now let's try using AltaVista, an index-based search engine.
Once again, enter San Francisco travel guide in the search box.The AltaVista search results in over
8 million documents that match the search terms! Life is too short to comb through all these. The
reason for this enormous list is that AltaVista turns up every document that contains the words
"San," "Francisco," "travel," and "guide."To search for documents that contain all of these terms, put
quotation marks around the terms (e.g. "San Francisco travel guide"). Doing this results in less than
50 documents, some of which look promising.
Now let's do an AltaVista search for cable cars. lf you just enter the words "cable cars," you will get
over 4,OOO documents that contain the words cable and cars. By using quotation marks around the
terms, you limit the search. Once again you have to read the descriptions and vis.it the page to see
if the information you want is available.
Ask Jeeves is a search engine that uses something called natural language query, which is a fancy
way of saying that you can ask your question in plain English. By typing in a question like "What is
the San Francisco cable car schedule?" you get a list of related choices, such as "Where can I find
a city guide for San Francisco?" and "Where can I find tourist information for San Francisco?" By
clicking on the question, you will access a website that may have the right answer.
AltaVista now uses technology developed by Ask Jeeves, so you can use Alta Vista to search by
keywords as well as by question queries.
Bear in mind that websites tend to change often. These changes are not always reflected in the
search engine databases, particularly for directories. That'slgcause a website developer often reg-
isters the information with the search engines when the sfte {irst goes online. After that, changes
don't generally get reported. For the most up-to-date report, your best bet are search engines that
use Web-indexing robots, software that constantly searches the lnternet, recording changes.

4.9 Searching Criterion

As previously mentioned, search engines work by giving you lists of Web pages that contain a word
or phrase that you enter. The phrase is entered simply as a group of words, such as, "rain snow
sleet." You do not need to enter words like, "and," or, 'the." The idea is that you can enter a word or
96 / ELECTRONIC COMMERCE

phrase that is related to the topic you are interested in, and all of the Web pages related to that topic
will be listed.lvVhile this might seem simple enough, there are a few things you should keep in mind
when entering a search word or phrase.
First, make sure your search phrase is specific enough. For example, if you are looking for a recipe
for apple cider, you wouldn't want to enter only the word, "apple." lnstead, you should enter some-
thing like, "apple cider ingredients." The word, "ingredients" was added because recipes usually
contain this word. That brings us to the second tip: always "anticipate" words that might'be includei
in the desired information. For example, if you were looking lor Ken Griffey, Jr.'s, batting average for
his 1995 season, you can assume that words like, "Mariners (the team.he plays on, for those of you
who aren't baseball fans)," "record," and, "RBl," would probably be included in a Web page that tilks
about Griffey's batting average, in addition to the obvious words like, "Griffey," and, "batting average."
Now, you must also remember not to get too specific. For example, if you are looking for a list ol
poisonous snakes found in South Africa, you would probably not want to include words like, "Cape
Town," or, "KalahariJ'(which is South Africa's capitol and a desert in the region, respectively)Third,
you should remember to use capitalization effectively.
Most search engines will search for all instances of the entered word (capitalized or not) if you enter
the word in lower-case letters. lf you capitalize a word, however, the search engine will usually only
look for the capitalized word, which might not be what you wanted. Thus, it is usually a good idea to
go ahead and capitalize proper nouns or initials, but it would not be a good idea to capitalize a
common word. Finally, if two or more words are usually found together, you might want to enterthem
in quotations (like "Bill Clinton"). Most search engines will search only for the words that are together
in the order that you enter them.

4.10 Advanced Search Techniques

Searching lor simple things like "Jeep" or "Washington" is very easy for most people. A problem
arises however when you need to search for something specific, but requires more than one word.
Most Search Engines and Directories provide for advanced searching, but their methods vary from
system to system. Primarily two types of advanced searches are supported, Phrase searches and
Boolean Searches. Each of these types of searches have their strengths and weaknesses. Set up a
couple of hypothetical items we want to search on and look at how we can accomplish them using
the two techniques.

4.10.t PhraseSearching
Perhaps the easiest of the advanced techniques, phrase searching allows you to search on multiple
words for one topic. For example searching on information concerning Dr. Martin Luther King Jr., You
might be inclined to search on Martin Luther King. Looking over your results in a typical Search
Engine, you would be surprised to discover that searching on Martin Luther King returned pages for
Martin Luther King, BB King, Kings in general, the Christian reformation, Martin Landau. ln other
words the Search Engine took your three words; Martin, Luther;qnd King and assumed you were
looking for web pages with references to any of t rese words in them.
lf you want a Search Engine to do a phrase search you need to inform the search engine that the
words you are looking for need to by grouped together. Sq don't search for Martin Luther King,
instead search lor "Martin Luther King". By enclosing the keywords within quotes you are basically
informing the search engine that all three words have to be present on the page and in close proxim-
ity to one another.
Some Search Engines will allow phrase searching, others will not. When in doubt, look on the main
page of the search engine for either a help file link or for their FAQ.
 GLOBALINTERNET /97

4.10.2 BooleanSearching
Named after an English mathematician, Boolean searching refers to a form ol logic applied to the
search. Basically a Boolean search requires some additionalwords to be used, for example search-
ing on the words "Cance/'and "treatment".This type of search allows you to exclude websites which
may be about Cancer, the constellation, or the horoscope sign.
Booldan Searches require using certain keywords, while these keywords may vary from search
engine to search engine, the concepts are the same.
D AND - Search onTerml ANDTerm2
D OR - Search onTerml ORTerm2
D NOT - Search onTerml but NOTTerm2
Gandhi AND Lincoln - Look for webpages which contain both words "Gandhi" and "Lincoln".
Gandhi OR Lincoln - Look for webpages which contain either the word "Gandhi" OR the word "Lin-
coln", or both.
Gandhi NOT Lincoln - Look for webpages which contain the word "Washington" and do not contain the
word "Lincoln".
Some systems have the ability to group Boolean terms using parenthesis. i.e.; (Gandhi and Lincoln)
not Hitler - Look for webpages which contain the words "Washington" and "Lincoln" but do not contain
the word "Hitle/'.
Washington and not George - Look for webpages which contain the word "Washington", and do not
have the word "George" in them.
Boolean searching, given these simple, yet powerful, capabilities allows someone to quickly narrow
their searches so that the results of a search may quickly pinpoint the information they need. The
more terms you are able to add to the search specification, the finer the results you will have in the
search engines.
Because there is so much information online, you will usually want to limit
the scope of your searches. How do you do this? This is a good point to
digress a bit to talk about Boolean logic.
The English mathematician, George Boole, developed an algebra of logic,
which has become the basis for computer database searches' Boolean
logic uses words called operators to determine whether a statement is true
or false. The most common operators are AND, OB and NOT. These three
little words can be enormously helpfulwhen doing online searches. A few
examples wiil show you why.
O Cable AND car Documents with both words George Boole
O Cable OR car The greatest amount of matches; $opuments with
eitherword
tr Cable NOT car Documents about cable, but not about cable cars; a good way to limit the
search.
The exact syntax each engine uses varies, so familiarize yourself with its unique properties.
One last word of advice. The lnternet may not be the best place to f ind certain information' While it
abounds with computer-related subjects, it is not as good lor historical information. The telephone
and a sharp reference librarian may still be your best bet.
98 / ELECTRONIC COMMERCE

O Boolean Logic
Perhaps the most usefulfeature in defining search criteria, Boolean operators can provide you with
powerfulcontroloverthe search engine logic.The Boolean operators AND, OR, NOT (orAND NOT in
some engines), NEAR and parentheses are in many ways analogous to mathematical operators in
how they shape the execution of a compiex equation. Here's what these Boolean Operators can do
for you:
O AND
lf you are looking for a document that should contain all of your keywords you can use the
capitalized word AND between keywords and the engine will only return documents that
have both words.
Example
An attempt to write 49ers AND schedule will return list of all documents which contain both
words.
Be sure to capitalize all letters in the word AND, otherwise the search engine willtreat it as
a keyword, not as an operator.
'ftr--,

49ers d

lf the left oval represents all documents containing the word 49ers and the right oval repre-
sents all documents containing the word schedule, the intersection of those ovals, the
green area, represents all documents containing both words.You can see how this operator
can be useful in narrowing your results.
ooR
lf you want to broaden your search to find documents which contain either of the keywords
you can use the OR operator between words. This is very usef ul when searching for lerms
which have synonyms that might be used in a document instead. An exampie is children
OR kids, which would return any document which had either of the words.

lf the lelt oval represents all documents containing the word children and right oval repre-
sents all documents containing the word kids, the gleqn area represents documents which
contain either word or both words. You can see how this operator would broaden your
search and obtain more results.
O NEAR
This operator is a more specific form of the AND operator. lt ensures that the document
contains both terms and that they are located near each other. ln many lengthy docu-
ments, just using the operator AND might not provide useful results as the two keywords
might be located in very different parts of the document and might not be related to one
 GLOBALINTERNET /99

another.
O NOTOTANDNOT
Using the capitalized AND NOT preceding a search term would eliminate documents which
contain that term. Why might you want to do this? lf you wanted to find information on
Dieon Sanders and did not want documents which include information relating to the Dallas
Cowboys you could use "Dieon Sanders" AND NOT cowboys'
O Parentheses
The operators AND, NEAR, OR and AND NOT are power{ul in their own right but, when used in
conjunction parentheses, they offer substantial control over the search logic executed by the engine.
parentheses are used in Boolean logic similar to the way they are used in a mathematical equation,
limiting and ordering relations between variables'
Here,s an example: if you wanted to find an Web-based lnternet tutorial you might use the search
criteria lnternet AND (iutorial OR lesson). The documents returned must contain both of the words
lnternet and tutorial oi lnternet and lesson. Essentially, the parentheses are used as they are for the
distribution property in mathematics - to dlstribute the keyword lnternetto either of the two "OR"
words inside the symbols.
The most common use of parentheses is to enclose two possible keywords separated by an OR
However,
operator and then linking those enclosed/possible keywords with other criteria using AND.
there are times and instances where the reverse arrangement might prove useful. For example, if
you were looking for ol you might want to use "gun control" oR (legislation
itrlO gunlwhich woul the words "gun control" (see phrase search) or docu-
ments containing the egislation'
you can further refine the search. Since the word law is a synonym of legislation you can even nest
and while we're at
one set of parentheses inside another to distribute gun to either legislation or law
to also distribute gun to the variation - laws'
it, truncate law with an asterisk
that each left side
Here's how it would look: "gun control" oR (gun AND (law. oR legislation)). Note
parentheses must be pairei with a right sideone somewhere in the Boolean expression or the search
engine will get confused (see how stupid they are!)'
+require and -exclude
preceding a word
Some engines offer a variation of the Boolean operators AND and NOT' A + symbol
word be present in documents. A - symbol preceding a
(with no space between) will require that the
present in returned documents. Note that all words which
t<eyword will ensure tfrai tne word is not
preceded by a + symbol even the first word. Example: +fraud
must be in the document should be ,
+election ensues that fraud is also in all the documents'
O Limited Boolean OPtions
pf,lt-.Oo*n menu choices such as:
Some engines offer limited Boolean logic with radio buttont ot
between allterms)'
Documents must include "Allterms" (equivalent to using the operator AND
Documents must include "Any terms" (equivalent to using OR between all terms)'

4.t0.5 CapitalSensitivitY
containing the capi-
lf a search keyword is capitalized the search engine will return only documents
to the country China, capital-
talized word. For example, if you were interested in docurnents relating
 1OO / ELECTRONIC COMMERCE
izing the word and using an engine which supports capital sensitivity would
narrow down the number
of results returned, eliminating documents which relate to china dlshes or cookery.
Note however,
that in many instances it is better to leave keywords uncapitalized to allow the
Lngine to return
results of documents which have keywords in either form.

4.10.4 PhraseSearching
When using search terms containing more than one word in a specific order, if you
enclose the words
in quotation marks the engine will return only documents containing
all the woids and in that specific
order. Example: When searching for information on gun control, using "gun control,,will
eliminate
those documents which may contain the word gun lnd control but not in that order; possibly in
entirely different paragraphs and maybe not eve r relating to gun control.

4.10.5 Truncation
lf you were looking for information on gardening you could use it as your keyword. However, your
if
results were limited in number (though not likely with gardening) an-d you wanted to broaden your
search to get more results, you could use a root part of the word and abbreviate it with the asterisk
(garden-) so that the engine would return results of documents containing gardens, garden, gardener,
gardeners, etc.

4.10.5 Date Capability

Many search engines offer the ability to limit searches by web page creation dates. This is a very
useful tool for people who will be doing continuing research on a specific topic enabling them to limit
the results to pages created since their last search. lt is also usefuiwhen searching for-current event
topics.
Note that the implementation of this feature varies widely. Some search tools like Yahoo offer radio
buttons or pull-down menus, while AltaVista and Hotbot provide the ability to specify dates or time
frames. Also, date sensitivity is related to the web page creation date, not some historical time
frame, i.e. it would not be usefulto use an engine's date capability to search for 1907 and information
relating to the Wright brothers, since there were no web pages created in 1907 (in fact the web has
ieally only existed in its present form since 1991).

4.10.7 Restricting Searches to Specific parts of the Document

Some engines can limit searches to specific areas, the most common being: title and URL. Here,s an
example of a title search: lf you are looking for information on Alternative Medicine and believe that
there are probably whole web pages devoted to your subject which have the keywords in the tifles,
you could use the syntax: title: alternative AND medicine.
An example of URL search would be if you are looking forApple computer web pages.you could use:
url: apple which would probably return web pages create by thacomputer maker Apple (and others).

4.10.8 Restricting Searchcs to Spccific Areas of thc Web

Some engines allow you to limit your searches to "just the Web" or just "newsgroups" (see the.
Communicating section for more information on newsgroups).

4.t0.9 Restricting Searches to Specific Xedia

Hotbot and Lycos provide you with the ability to search for various types of media, including audio,
video, images, Java and VRML. Other search engines which offer a limited set of media selrching
 GLOBALINTERNET /101

include AltaVista.
which search
The library at the University of California at Berkeley has an excellent chart detailing
features are offered on the more powerful search engines as well as links to
instructions detailing
how to use each specific search engine (links are located at the top of chart)'

4.10.10 Xetasearches
a query to multiple search'
Rather than search each directory or index individually, you can submit
engines by doing a metasearch'

4.1I Searching TiPs

information' lf you
1. There are many search engines and directories available for linding
cannot f ind what you need f rom one, try some others. Take the time
to read the help or tips
(e.g' - * - * ", AND NEAR
file for each one, iince each one uses iifferent symbols or words
the same time'
NoT , etc.) to n"iio* your search. lf you'd like to search everywhere at
there is a site for You - DogPile.
and What-U-Seek are
lf you think Dogpile searches too many places (Thunderstone,-GoTo'com
All Search Engines. A direct link to Mamma is
essentially worthless), check out Mamma: Mothei of
also available at the bottom of this page'

ol this page'
Yahoo!, HotBot and lnfoseek are also available near the bottom
part of the page; hit the
2. lf you try to go to a URL but get an error message or only receive
later on. lf you don't get through' the
Reload (or Refresh) button immediately or try again
exist, but then agiin it miglit' Bookmark the page and try to visit it at
page may no longer
a differnet time.
blank http://
3. lf you want to be adventurous, you can insert what you want,into.the
Geographic is at
www.-.com, hit enter, and see where you go. For example, National
http://www.nationalgeographic.com/, The ilew-York Times is
at http://www'nytimes'com/'
PBS is at http://
US News a World-neioris is at http://www.usnews.com/ . However
Harvard would be at http://
www.pbs.org/, NASA is at http://www.nasa.gov/, and
www.harvard.edu/ '
what you are looking for' Most
4. sometimes web pages are very long and it's hard to^find
and type in a word. Your
browsers have a Find button at the toi of the screen. Click on Find
-ur;*r"i*irii"r," page and highlight it wherever
vo, to that word on ihe currently drsplayed
it appears as well. (ln lnternet
gxpnrer you have tdlirSt click on the word Edit at the top of
the screen and then on Find in the pulldown menu')
the stop button and then clicking
5. lf your browser cannot connect to a page at all, try hitting
ontn"hyperlinkagain.Youwilloftenconnectimmediately.
sion button' web
6. lf your browser is taking a long time to load a web page, click.on ln9 annoying' ll
sometimes fun but often
pages olten contain exJessive graphics which are
youWanttoseethefullpage'youcanalraysclickonReloadorRe{resh.
 102 / ELECTRONIC COMMERCE

7. lf you need some tips for chatting on the lnternet, visit the Beginner's
Guide To Chat.
8. You will get a lot of e-mail that is garbage if not outright f raud.
Check out The National Fraud
lnformation center, lnternet scambusters and clAC lnternet Hoaxes.
9. You may have an e-mail program that can do a lot of fancy colors and
hyperlinks and such.
lf the person to whom you are writing doesn't have the i"r" program
to read the e-mail,
your letter will still be readable but will look quite different and possibly
quite bizarre.
10. The middle of the night (2AM - 7AM E.S.T.) is a great time to surf the web.
Unfortunatety
it's an even greater time to sleep.
11. Several websites (e.g. - The New York Times) insist on a password even though
they are
free. You can either make a little password folder in your computer or (like
me; llways use
the same password. lf security is important (such as logging on to an lnternet Service
Provider) then by all means use a unique password
12. Almost any browser will allow you to visit more than one website at the same
time. This is
particularly useful when you are downloading a large file or graphic-heavy
webpage. lf you
are downloading a file (other than a webpage which is itseli a file or combinattn
of tiles;,
simply surf off to any page you like and keep surfing until the download is completed. you
can also open your browser program more than once. lf your computer can multitask,
simply start your browser program again while leaving the originally started browser pro-
gram open.
13. lf your browser is running much slower than usual, disconnect from your lnternet Service
Provider (lSP), wait a minute and then reconnect again. You may have been connected
through a poorly f unctioning modem or telephone line and may now get connected through
a better one.
14. Speeding Up Downloads
While text downloads quickly, images can really slow things down. There are two ways to
speed things up.
D Since text appears first, after it loads, click the STOP button. The images won't
appear, but should you want to look at an image, use the right mouse Outton to click
on the image icon, then select View lmage.
O You can view websites in text-only mode by turning off the auto-loading of images
function under the Options menu.
15. One final word of advice: Your web browser is your gateway to the lnternet. Take the time to
learn about its features. ln the long run, it will save you hours of frustration.

4.12 Downloading
Downloading means to transmit a file f rom another computer to yours. lt can be as simple as clicking
on a hyperlink on a web page, to transferring an entire application using FTp,
Many files are compressed to save space and once downloaded must be "unzipped". This requires
special software which can also be downloaded from the lnternet. Some files are self-extracting and
will download ready to use. Use PKZ|p forWindows machines and Stuffit, Stuffit Delux or DropStuff
for Macs.
 GLOBALINTERNET /103

ln a Browser:When the browser displays the page forthe userto see, the page has been "downloaded."
You can highlight the information, copy it, and paste it into a word processor to use later. Or you can
save the page as HTML and later open it with the browser. [SAVE..AS...FlLE TYPE...HTML] NOTE:
lf you save the information as HTML, you will retain the formatting, but you will not save the
graphics.
Download a Graphic: There are many clip art sites on the lnternet that are there for the benefit of
anyone who finds them.To download a graphic, simply right-click on the graphic and choose save..as,
then choose C: drive or A: drive
With the WorldWideWeb, downloading files is as simple as clicking your mouse.Typically, downloading
refers to the method by which you access digital information f rom a remote computer. As it turns out,
almost everything you do on the Web is some form of a downloading. For instance, when you access
a web page, you are actually downloading the page text and all the associated graphics from a
server. Your web browser looks at the file extension (the letters following the "J'). lf it recognizes this
type of file, it will display it.
ls there a difference when you download software? Not really. The web browser looks at the file
extension, and if it doesn't recognize it, it will ask you if you want to configure a viewer (tell the
browser which software program to use to view the file). You also have an option to save the lile to
your hard drive.
Another way to download files is to click on the link to the file with your right mouse button (or hold
the mouse button down if you are using a Mac), and select Save to Disk f rom the pop-up menu. ln
some cases, you will be prompted to save the file somewhere on your hard drive or the file may
download automatically to your desktop, depending on how your browser is configured-
More often than not, you will be downloading files that have been compressed. These may be
individual files or group" of files that have been compressed into one file to save downloading time
and disk space. ttlfre iites you download have been compressed, then you generally need a sepa-
rate software utility to decompress them.
The exception are files w1h a .sea (Macintosh) or .exe (DOSMindows) extension which are self-
extracting. These files do not require a separate piece of software to run. Because many of the
files
you dowiload willtake time to be transferred to your computer, you will want to save yourself the
headache of discovering, afterthe fact, that you d wnloaded a file that won't work on your computer.
How can you tell? Readlhe Learn The Net article about file formats and extensions for more informa-
tion on file extensions and how to interpret them'
Tutorial 4.1 To find information using Gopher,
1. you must know the address for the gopher site. Here is a gopher site to help with learning
the lnternet: GoPher Site
the protocol, "gopher://". To access a gophe-r.site using the Browser, you do NOT
2. Notice,,http:l/"
type, You will type "gopher://" instead. This fs'then followed by the domain names.

3. Once the site has downloaded to your Browser, you must navigate through a series of
hierarchical menus with a list of choices. Each time you select an item on the menu, you
will be presented with another menu, until you eventually find files that can be read, copied,
printed. etc.

4.13 Hypertext Transfer Protocol (HTTP)

ln a
HTTP is the protocol, designed byTim Berners-Lee as early as 1989, is really rathersimple'
 104 / ELECTRONIC COMMERCE

nutshell, one application hosts data and "listens" for connections on TCP port 80. (Think of a .port"
like a telephone number extension.) Another application then opens a connection to the host on the
same port and initiates a dialog. The dialog is simply a request for data (by the client) and response
by the host (server). ln many ways, the protocol is much simpler than FTP or SMTp. Both of these
protocols require there to be a true dialog between client and server.The current implementation of
HTTP only requires one request and one response.
Hypertext is a method of organizing information;clicking on a word or phrase that is underlined and
colored takes you to more information. The World Wide Web is made up of files called Web pages,
which can contain text and images (and links to video, sound, programs, and other types of files).
You're reading aWeb page right now!
Push programs, programs which ask you about your interests, then forward information to you in
which they think you might be interested. PointOast is a classic example of push technology; for
example, you can request National and politics news from CNN, celebrity gossip from People maga-
zine, and stock information from the Wall Street Journal. Once you have selected your preferences,
you simply hit the Update button and the program fetches the news. News articles can even be
displayed as an attractive screen saver! PointOast is free; advertisers support its expenses.

4.14 The World Wide Web & Hypertext

The World Wide Web, commonly referred to as the Web or the WWW, is the most recent (and probably
the most revolutionary) addition to the lnternet. Simply defined, the Web is a large information re-
trieval system on the lnternet, with hundreds of inter-connected hosts (computers).The Web has two
features that make it stand apart from other parts of the lnternet: hypertext and multimedia.
Hypertext is what makes all of the documents on the Web inter-connected. Basically, hypertext can
be defined as any text that includes hyperlinks, which are words or pictures that, when clicked with
your mouse, automatically load another Web document on your Web browser. These hyperlinks are
usually called links.
You can distinguish a link from ordinary text because it is usually displayed (depen(ing on your
specif ic Web browser and its conf igurations) in a different color and is underlined.Your Web browser
displays links like this:
O Whenever you see text that looks like the link above, you will Web browser will automati-
cally load another Web document.
tr The second feature of the Web, multimedia, can be defined as the ability of a Web docu-
ment to display graphics and produce sounds. Although Web documents including sound.
files (MlDl files) are somewhat rare, most Web pages do make use ol graphic images.

4.15 What is a Url?

A URL is simply a "Web address" - the identifier for a specific place on the Web. URL stands for
Uniform Resource Locator. A URL can be viewed as a networkedSitension of the standard filename
concept: not only can you point to a file in a directory but that file and that directory can exist on any
machine on the network can be served by any of several different methods and might not even be
something as simple as a file.
URLs can also point to queries, documents stored in databases, or the results of a system commaDd.
It is possible to represent nearly any file or service on the lnternet with a URL.
URLs are given to help you find specific resources on the lnternet. The addresses provided at the
 GLOBALINTERNET /105

start of this lesson were the URLs found in advertisements in a popular magazine' lf
information on the lnternet, you should cite the source of that information. lnclude the author's name
or the organization's name (if no author is given), the data of the item or the data you referenced it,the
name oflhe article, and the URL for the resource. URLs are provided in the online Discovery sec:
tions at the ends of the lessons in this book'

4.15.t URI Syntax

lnternet facilities can be accessed through
D Http a file on a World Wide Web server file
O Ftp or a file on an anonymous FTP server
D Ftp a file on an FTP server
O Gopher a file on a GoPher server
tr WAIS a file on a WAIS server
O News an Usenet newsgrouP
tr Telnet a connection to a Telnet-based service
URLs
URL is a draft standard for specifying an object on the lnternet, such as a file or newsgroup.
look like this: (file: and ftp: URLs are synonymous.)
Example
tr file://wuarch ive.wustl. edu/mirrors/msdos/g raphics/gif kit.zip
o ftp://wu arc h ive.wu stl. ed u/mi rrors
o http ://www. w3. o rg : 8O/defau lt. html
o news:alt.hypertext
tr telnet://dra.com
The URL has three Parts:
ftp
D The tool used to access the resource.Tools include telent(forTelnet-based resources),
(for Web - based
(for FTP-based resources). news for Usenet newsgroup), gopher, and http
is a
resources). For example, if a URL begins with gopher, you know that the resource
the resource. The tool
Gopher resource and you need to use; Gopher browser to access
identifier is usually followed by two slashed(//)'
O the stuff before the colon tells the browser how to access that
The first part of a URL
- -
particulai file. For example, to access ftp://wuarchive.wustl.edu/mirrors/your browser
would
Here is a list of some of
use FTp. Most of the access methods are pretty straight-forward.
first part of
the more common access methods that you ire going to see listed in the
URLs:

Method What lt Stands For

Itp FileTransfer Protocol

news lnternet News Protocol (Usenet)
gopher Gopher
telnet TELNET
http Hype rtext Transfer Protocol
file is a hypertext document (with
see a URL with "http" at the beginning of it, that means that the
only through a Web browser'
hypertext links to oti'rer documents; anO it can be accessed
 106 / ELECTRONIC COMMERCE

The rest of a URL

- the
after the two slashes
stuff after the colon
(//) indicates a machine
is the address of that particular resource. The stuff
- name or address (remember those from MApl 1:
TELNET?). For example,
f ire : / / w.uarc,hive . wustl . edu,/nirrors /nsdos /graphics / gifki t .z ip
is the URL for an FTP file at "wuarchive.wustl.edu," and

http: / /www. w3. orglpub/WwW/MarkUp

is the URL for a hypertext document at "www.w3.org',
D The address of the computer on which the resource is located. This address uniquely
identifies the computer on which the resource is located, anywhere on the lnternet.
O The optional path name of the resource itself. The path name tells you the names of the
directories and subdirectories on the computer where the resource can be found. This
piece of information may not be present if it is not needed.

4.15 WEB Servers

The phrase "World-Wide Web" is often used to refer to the collective network of servers speaking
HTTP as well as the global body of information available using the protocol. ln a May 1996 survey
Netcraft found 193,150 servers on the Web (and who knows how many more exist behind corporate
firewalls?). A Web client (or browser) sends requests to a Web server.
Every retrievable piece of information on the Web is identified by a URL, which includes the name of
the object, where it is located, and the protocol used to get it.
Only information on a server (or your local system) is part of the Web.You need to "publish it" (i.e. put
it on a Web server) to make it accessible.
The Web server is responsible for document storage and retrieval. lt sends the document requested
(or an error message) back to the requesting client.The client interprets and presents the document.
The client is responsible for document presentation.
The language that Web clients and servers use to communicate with each other is called the Hypertext
Transfer Protocol (HTTP). AllWeb clients and servers must be able to speak HTTP in order to send
and receive hypermedia documents. Forthis reason, Web servers are often called HTTP servers, or
HTTP Deaemons (HTTPD).
There are many different Web servers, running on many platforms.
ln this example you are using a browser (Netscape, or Mosaic, or some other browser) and you,click
on a reference to WebMaster Magazine Online. The browser is able to f igure out that what you really
want (in Web terminology) is the object the Web knows as http://www.cio.com/WebMaster/
wmhome.html - the Web address (or URL)forWebMaster Magazine Online.

4.15.1 A Typical Tiansaction between Web Servers afd qients.

The browser sends your request to the right server. How it figures out what that machine is, and
where it is, is beyond this discussion, but gets us into looking at name servers and othertools which
keep track of domain names, address names, and physical locations. Let's trust that some bit of
magic occurs, and the browser can send your request off to the machine that handles requests for
www.cio.com.
ln the message it sends there is a lot of information you don't need to see, like the method to be
used, the URL, possibly parameters (used when you want to pass a search string, for example), and
 GLOBALINTERNET /107

other information.

4.15.2 The ).lain Webserver: httpd (The http daemon)

When it gets to the server the Web server, also known as the httpd (which stands for http daemon)
takes over. lt knows where it stores Web objects, and it tracks down the one you asked for. lt might
pass your request olf to another process (like a search engine or an application), and wait for a reply.
when it gets what it asked for, it sends the object back to your browser.
document includes several different graphic files as well as the HTML you are reading, each of which
is a separate object), the server will send each of these objects back individually'
your browser collects together the different pieces you requested. A Web page can have references
to objects all over the iet, and may include objects that are on your local system (for example
product to you.
objecis that it cached earlier). lt pulls them all together, and presents the finished
you will need
The server actions can be more complicatecj than a simple object fetch, in which case
lnterface (CGl) is a standard for external gateway
to learn about CGI's. The Common Gateway
programs to intedace with information servers such as HTTP servers.This allows them to do trans'
actions, security, access other applications.

4.16.t Server Hardware

for any
It almost doesn't matter what hardware you use. The ideal way to select the hardware
computing task is to first ask yourself what software you need to satisfy the task. The software
you may not
should drive the hardware. ln tlie realworld, this is not always the case. Consequently,
you may be asking yourself, "What hardware is
have to ask yourself what hardware to use. Rather
available?"
purpose(s) of your
lf you do have a choice of hardware, then first articulate and enumerate the
guesstimate how many hits your server will get per
,"ru"r. Analyze who your audience is and try to
services act as a conduit lor your usual print
day. lf your."ru";, is intendgd to disseminate tisti of or
, pu'Uti""tions, then a microcomputer-based server will do just fine. lf you are planning for a depart-
mental lntranet, again, a microcomputer-based server will fit the bill.
(maybe 35 K) files'Thirty-
Consider exactly what any HTTP server is doing. lt is disseminating small
five kilobytes of cjata is tin ge computer to serve this amount
ou"1. ug"in. Furthermore, i ocomputer-based servers can han
hits per hour, if nottens of use of your microcomputer as a se
determined by what infor ou have that you would like to sh
to serve this data
resides in a microcomputer, then you will be using the same microcomputer
(unless you want to move it to another machine)'
ln short, microcomputer-based servers offer a number of distinct
advantages'

O First, the use of an operating system you are alrp?dVoverhead' familiar with; you will not have to
learn something like Unix and all of its administralive
o second, the microcomputer hardware is readily available. starting out, consider using one
of those computers in ihe back room that may be gathering
dust' On the other hand' the
be something to consider'
use of a Unix, Windows NT, or even a VMS-based server may
systems come at a
This is especiaily true if you desire to serve the rock-solid operating
cost. One is administrative support'
you will almost necessarily have to have some sort of network "guru" managing-your system' For
Unix, Windows NT, or VMS environ-
you there may be a learnini curve while you get familiar with the
 1 08 / ELECTRONIC COMMERCE

ment' Another cost is distance. "out of sight, out of mind." ln

other words, if your HTTp resides on a
computer in the back room that only a few people have direct access,to,
tnen tre computer turns
into
a mystery' This is not the best way to perceive of computers
and makes them seem far away and out
of your control' At the same time, these bigger computers were designed
to run client/server appli-
cations.
TCP is a fundamental p.art of the Unix operating system, and
consequenfly there is a lot of support
for TCP networking built in. Also, there is no denying it, th"r"
bigger computers are laster. But
remember, the speed of any network connection
users are all using 28.9 modems, then it doesn,t
minicomputer. ln the end, you willprobably find y
and minicomputer-based HTTP servers in your
desktop computer as a test bed and grow from there.

4.16.4 Seryer Software

Features to look for in HTTP server software are described here. By now,
there must be more than
a hundred different HTTP servers to choose from for just about
every operating system. They range
from things promising you the Moon to dbsolutely freb applications
where you get exacly what you
pay for. Obviously you want to choose something in between.
Features
lf you are just starting out, here is a list of features you should look for
when selecting HTTp server
software:
tr Access control via lp or domain name
D Adequate technical support from the lnternet
O CGlscriptingcompatible
tr Configurable error file definitions
O Flexible log file creation
tr Security through passwords
O Supports server side includes (SSl)
More advanced features include:
tr Built-in imagemaping
A lmplements byte serving
O lmplements the pUT method
B Simple logfile analysis
tr Specialized "hooks" to the server's operating system
D Supports the Secure Socket Layer (SSL) prototot
tr Technicalsupport from the software's vendor
tr Tight integration with database applications ).
Each of the three HTTP servers outlined in the following sections support all of the
features in the
first list and a few of the features in the second. They are all free, and they are all very
stable
applications.
(1) ApacheWeb Server
Apache, a server for Unix computers, is the most popular and is considered one of the most robust
implementations. lt does not do any logfile analysis. There is no vendor so there is no formal
techni-
cal support. There is no real way to administrate the computer through a Web interface.
On the other
hand, Apache's modular approach. allows for a great deal of customization. lt includes
strong links
 GLOBALINTERNET /109

for database applications. lt allows you to save your logfiles in formats you define. But most impor-
tantly, it runs on-any Unix computer, and Unix is an operating system designed for client/server and
TCP/lP applications.
According to Netcraft , Apache has been the most popular HTTP server for quite some time.This
is
understandable since it, iike the other servers described here, is "as lree as a free kitten", runs under
As
any flavor of Unix, is very extensible, and is just about as robust a server you willfind anywhere.
of version 1 .3b, Apache no* also runs under Windowsg5 and NT. lt will also be ported to Rhapsody
(Macintosh) when that operating system becomes available this year. Consequently, Apache repre-
just about any
sents a good, all-around HTTP server. One that you can/will be able to take to
devel-
computei. Apache, based on the original NCSA httpd application, got its name from when its
opeis where trying to break httpd down into its original parts. Thus, it was "a patchy server."
precompiled
There are two alternatives for acquiring the Apache software. One, you can download a
source
binary for your particular version of Unix or windows. or two, you can download Apache's
it offers you
code and tompile it yourself. This section outlines the second option for Unix since
greater flexibility.
(21 Quid Quo ProWeb Server
relationship
This server is extraordinarily simple to bring up and maintain. lt does not support a close
with any database applicaiions, but it is integrated with the Macintosh OS through AppleEvents'
write and save:
Unlike most other server software implementations, there are absolutely no text files
include administrative functions and has built-in
everything is done through dialog boxes. lt does
popular
imagema[ping. ln short,'euid Quo Pro support the vast majority of features of the most
Macintosh HTTP server but it is infinitely cheaper, $0'
(3) WebSife Web ServerWebSite comes with the most bells and whistles of the servers mentioned
exception of SSL'
here. lt supports allthe features in the first list as wellas the second list with the
It comes with
and Windows
server side includes, and administration features. Designed to run under WindowsgS
proliferation of the Windows
NT, this server would fit most people's needs especially considering the
platform.
the original developer,
Like Apache, began its life as a port of the NCSA httpd server. Robert Deny,
quite a number of improvements since
is now working witn o'Reilly & Associates, lnc. and has made
is painless. lt involves downloading the ar-
the original dLtribution. aiinging up a website server
Begin by acquiring the distribution
chive, in"orpr"""ing it, and ioiig il',e tiniest bit of configuration.
from the download pige at website.ora.com <httc://software.ora.com/download/>.
(4) Quid Pro Quo Web Server
based HTTP available, but
Hawk, the develoPer, has
how to bring uP this server

Be sure to download
Begin acquiring the application from its download page at www.socialeng'com.
rich versions are available for
Quid pro Quo 2.x since it is the free version. The other more feature
your www browser is configured
free 30-day trials and require a serial number to activate' lf
a self-extracting archive' Launch
correctly, then the downloaded file should uncompress and resultin
place on your hard disk'
the self-extracting archive and tell it to save the compressed file any
 1 1O / ELECTRONIC COMMERCE
(5) Microsoft's PersonalWeb Server 4.0
It is possible to serve light-to-moderate loads from a desktop environment
with Microsoft,s personal
Web Server 4.0. Anyone administering a website knows how helpful access
to the Web server can
be' Experimenting with new techniques and custom server configurations is a
breeze when you,re
behind the wheel instead of working through a File Transfer Protocol (FTp)
client and subject to the
mercy of your ISP's systems administrator.
while Unix, Windows Nf, Apache and Linuxare considered the platforms of choice
for serving, it,s
hard to justify the expenditure of the first two for noncommercial or test purposes.
Linux and Apache
are f ree, but setting them up is too complex for many users, especially ihose who
work every day in
a Win 95 or 98 environment. Try running a Win 9 i or 98-based Web seru"r on your
system.
Microsoft has given everyone the chance to be a webmaster by giving seryer software
away for free.
lf you have a Win 98 CD-ROM, look under the /add-ons/pws Oirectory for the installation
files.
Familiar Microsoft wizards guide you through installation. PersonalWeb Server 4.0 lets you
begin
serving dynamic pages, Microsoft's Active Server Pages (ASPs), without having to install
the
Redmond, Wash-based company's higher-end NT 4.0 Seiver or the lnternet lnformati6n
Server (llS).
Personal Web Server 4.0's Home Page Wizard demonstrates how to set up a Guest
Book page,
which will probably be many users'first chance to put ASps into action.
Of course, Personal Web Server 4.0 also supports other Microsoft technologies such as
Microsoft
Transaction Server, Data Access Components, and Message eueue server client.
TIP:
1' Avoid using the FrontPage Personal Web Server that comes with Frontpage for serving
pages for extended periods. A memory leak prevents the Web server bundled witfr fronteag6
from being a dedicated server. Microsoft recommends using PersonalWeb Server 4.0 in-
stead.
2" A compact installation of Win 98 will not show the icon for Personal Web Server under the
Start/lnternet Explorer folder. Run Windows Setup using the Control panel/Add/Remove
Programs
3' The FTP services found in earlier versions of PersonalWeb Server are not included with
the latest release. Consider using third-party FTP server software such as WAR_ftp or FTp
Serv-U.
You'll find some restrictions on PersonalWeb Server 4.0:
A 10-user connection limit, lack of authentication, and NCSA-only log file format restricts personal
Web Server 4.0 to workgroup-type websites. PersonalWeb Server 4.0 requires allfiles published by
the server be located on the local hard drive. Also, the lnternet Explorei 4.0 browsei must be in-
stalled. The Microsoft upgrade path should be crystal clear. lf yogwant full server functionality,
upgrade to Win NT and llS 4.0.
(6) WebSiteProfessionat2.3
O'Reilly WebSite Professional 2.3 has the distinction of being the only Web server that runs under
Win 95 and 98, NT Server, and NTWorkstation. Unlike Microsoft PersonalWeb Server 4.0, WebSite
Professional 2.3 is a fully functional Web server that offers advanced support for ASps, multiple
virtual servers, authentication (website and NT-based), and server-side Java.
WebSite Professional 2.3 offers tools geared toward making administration. development, and site
 GLOBALINTERNET /111

analysis abreeze not found with PersonalWeb Server 4.0.

My only grievance with WebSite Professional 2.3 is it isn't free. The $799 price tag is relatively
expensive compared with PersonalWeb Server 4.0. But it's justified by the quality of the tools and
documentation. Developers looking for ASP support on the Win 95/98 version of WebSite Profes-
sional 2.3 may be disappointed. WebSite Professional 2.3 requires llS 3.0 and NT Server to enable
ASP features.
(71 WAIS (Wide Area lnformation System)
WAIS is a database on the lnternet that contains indexes to documents that reside on the lnternet.
Using the Zg4.5O query language, text files can be searched based on keywords. lnformation
resources on the lnternet are called "sources." A directory of WAIS servers and sources is available
from Thinking Machines Corporation, Cambridge, MA, at address quake.think.com.
When you type in a word or topic, a WAIS Server scans internet libraries. lt returns a master index
providing links to all the sites related to your request. The index is weighed, identifying which links
are most closely related to the topic.
There are WAIS programs that work independently of the Web.You can reach these programs through
special gateway software available on many Web Pages, which lets you do Powerful WAIS Search
within Mosaic.
Other Servers
There are different types of servers, ranging from Plexus (written in a language called Perl), to
NCSA's HTTPD (a C-based program), to commercialservers like Netsite.

4.17 Web Guides

Another utility available on the lnternet is the Web guide. Web guides are comprehensive guides to
information available on the Web, sorted by topic. The Web pages they contain are entered into their
database by the individualWeb page owners. Some contain a vast variety of topics, while others
include topics related to a specific field, such as education or music, for example'. You can usually
browse or search the guides. Following are a few Web guides available:
Paz hllp/la2z.lYcos.com
Alberts2 httP://www.albert2.com
Points httP://Point.lycos.com
Yalrco! httP://www.Yahoo.com

4,18 Portal and Portal SPace

Portal is a new term, generally synonymous with gateway, for a World Wide Web site that is or
proposes to be a major starting site for users when they get connected to the Web or that users tend
to visit as an anchor site. ln July 1998, leading portals included Yahoo, Excite, Netscape, Lycos,
CNet, and Microsoft Network. With its own private array of sites when you dial in, America Online
(AOL) could be thought of as a portalto its own
portals to the Web for their own users. Most portals have adopted the Yahoo style of content catego-
ries with a text-intensive, faster loading page that visitors will find easy to use and to return to.
Companies with portal sites have attracted much stock market investor interest because portals are
viewed as able to command large audiences and numbers of advertising viewers.
Typical services offered by portal sites include a directory of Web sites, a facility to search for other
1 12 I ELECTRON!C COMMERCE

sites, news, weather information, e-mail, stock quotes, phone and map ihformation, and sometimes
a community forum. Excite is among the first portals to offer users the ability to create a site that is
personalized for individual interests.
The term portal space is used to mean the total number of major sites competing to be one of the
portals. ln fantasy games, science-fiction, and scme "New Age" philosophies, a portal is a gateway
to anoiher world of the past, present, or future, or to an expanded awareness. ln 3-D graphics
development, portal rendering is a technique that increases the effect of realism and speeds up
presentation.

4.l9 Web Browsers

As already explained in module 9 a browser is an application program that provides a way to look
at and interact with all the information on the World Wide Web. The word "browse/'seems to have
originated prior to the Web as a generic ierm for user interfaces that let you browse text files online.
By the time the first Web browser with a graphical user interface was invented (Mosaic, in 1992), the
term seemed to apply to Web content, too.
Technically, a Web browser is a client program that uses the Hypertext Transfer Protocol (HTTP) to
make requests of Web servers throughout the lnternet on behalf of the browser user. A commercial
version of the original browser, Mosaic, is in use. Many of the user interface features in Mosaic,
however, went into the first widely-used browser, Netscape Navigator. Microsoft followed with its
lnternet Explorer. Today, these two browsers are highly competitive and the only two browsers that
the vast majority of lnternet users are aware of. Although the online services, such as America
Online, Compuserve, and Prodigy, originally had theirown browsers, virtually all now offerthe Netscape
or Microsoft browser. Lynx is a text-only browser for UNIX shell and VMS users. Another recently
offered browser is Opera.
A Weo browser contains the basic software you need in order to find, retrieve, view, and send
information over the lnlernet. This includes software that lets you:
O Send and receive electronic-mail, or e-mail, messages worldwide nearly instantaneously.
D Read messages f rom newsgroups, forums about thousands of topics in which users share
information and opinions.
tr Browse the World Wide Web (or Web) where you can find a rich variety of text, graphics,
and interactive information.
D Browsers such as Microsoft. lnternet Explorer version 5.0 include additional lnternet-
related software. For example, with lnternet Explorer 5.0, you also get:
O Windows Media server
D NetMeeting.conferencingsoftware
D ActiveX. controls
D Clrat
D ActiveMovieapplicationprogrammingintedace
tr ActiveChannelwebcast
U Subscriptions
A Dynamic HTML
D Windows Media
This allows you to see and hear iive and recorded broadcastssuch as concerts or breaking news
with synchronized audio, graphics, video, URLs, and script commands. And streaming technology
allows you to see or hear the information as it arrives instead of having to wait for the entire f ile to
download.
 GLOBAL INTERNET /113
4.2O Working of Browser
Let's take a look at how web browsers work. There are
today:
three basic types of www browsers in use

O Line-mode browsers;
O Full-screen browsers (like Lynx); and
tr Graphicalbrowsers(likeNetscape)
Line-mode browsers are about as user unf riendly as you can get.
This is hard to describe, but line-
mode browsers work a little like FTP inasmuch i. you type a"command, get
some information on
your screen, type a new command, get some more information,
and so on ..^
screen that looks a little like the Gopher
reen browser works differently, but in most
creen. select a highlighted word or phrase
the right arrow cursor key), and you are

The good news a at they are all pretty simple to figure out (if you can
figure out how to oblem using a full-screen browJer). irre uao news
about full-screen isplay pictuies ... and an overwhelming majority of
the bittions of We neajity on the use of pi.tr,"" ;i;;,. graphical
images. "nJ
lf you want to see these.pictures and other graphical images (a.k.a. "hypermedia,,),
you are going to
have to use a graphicalweb browser like Netscape, Mosaic, or lnternet
Explorer.
4.20.1 l.licrosoft lnternet Exptorer version 5.0
lnternet Expiorer 5'0 is fast and saves you time on the web by automating
complex tasks - making
you more productive. Microsoft lnternet Explorer 5.0 Microsoff released
a beta version of its lnternet
browsing technology, Microsoft lnternet Explorer 5.0, on November 4, 1gg8.
Using Microsoft lntellisense technology, lnternet Explorer simplifies and
automales common brows-
ing tasks-like searching, navigating, and organizing and accessing information-and
offers users
more flexibility. Here are some examples of changei that users will see.
tr Automated features
To speed and simplify your browsing experience, lnternet Explorer 5.0
includes the following:
1. Autocomplete-Provides a drop-down list of choices that match what you're typing
2. AutoOorrect-Fixes typos as you type AutoSearch-Gives you Web search ,e., jt"
rih"n yo,
type part of a URL in the address bar requir ,d by a Web page
3. AutoDetect-Gives you visual cues about what's accessible-otttin"
4. AutoConfiguration-Locates and connects to the appropriate proxy server if you
use one to
connect to a network
5. Web accessories These are developed and distributed by major Web sites to work
in con-
junction with their sites and customize aspects of your tniernet
Explorer 5.0, such as your
toolbar and menu items. Some sites have already developed custom Explorer bars, for
instance.
The following is the list of additional lnternet-related software. For example, with
lnternet Explorer
5.0, you also get:
A NetShow server
 1 14 / ELECTRONIC COMMERCE

O NetMeetingconferencingsoftware
tr ActiveX controls
C Chat
D ActiveMovieapplicationprogramminginterface
O ActiveChannelwebcast
D Subscriptions
C Dynamic HTML
0 NetShow server
This allows you to see and hear live and recorded broadcasts such as concerts or breaking news
with synchronized audio, graphics, video, URLs, and script commands.
And streaming technology allows you to see or hear the information as it arrives instead of having to
wait for the entire file to download.
O Internet Connection Wizard
The Microsoft Windows g8 operating system includes a new lnternet Connection Wizard, which
makes it easy for you to set up your very first connection to your ISP or online service provider. lt
includes a national list of lSPs and online se.rvice providers for you to choose from. The wizard
automatically sets up your system to connect you to the lnternet using the ISP you choose.
O NetMeetingConferencingSoftware
With a sound card, speakers, and a microphone, you can talk to others worldwide from lamily to
colleaguesusing NetMeeting. Add a Windows-compatible video capture card and/or camera to see
them, too.
Exchange pictures and draw diagrams on an electronic whiteboard, communicate with text-based
chat, transfer files, and share applications.
O ActiveX Controls
interactive Web sites. ActiveX Controls are the soltware components that run behind the scenes in
lnternet Explorer so that these sites come alive for you.
D Chat
This program lets you converse online in real time with one or more people. You decide how your
message is displayed text only or text with graphics. You can send and receive sounds, files, and
"hot" links of e-mail addresses, Web pages, and newsgroups. You can even "whisper" to another
person in a group chat. Use it for your next online family reunion.
O ActiveMovieApplicationProgramminglnterface
ActiveMovie allows you to experience television-quality video and CD-quality audio, while minimiz-
ing file size and download time compared to other video and audio formats. By using "progressive
downloading,"
ActiveMovie lets you start playing an audio or video clip while it's still downloading.
O Active Channel
Active Channel webcasts enable dynamic inlormation to be sent regularly to your computer. They
automatically transmit content that fits your interestseverything from Disney entertainment to stock
quotes. Use the Channel bar to select your favorite topics, and lnternet Explorer 5.0 gets the infor-
mation, so you can read it whenever you wanteven offline.
O Subscriptions
This feature delivers preferred information straight to your desktop, when you want it, in the way you
 GLOBAL INTERNET /115
want itfor f ree". To subscribe to a Web site, select the site and specify when you want the information
updated and how you want to be notified, sueh as through an e-mail message. lnternet Explorer does
the rest. Then you can browse the content offline.
O Dynamic HTML
lnternet Explorer 5.0 supports this programming language, which makes enticing, unique; fun, and
fast-downloading Web pages possible.The pages download quickly because they are created using
lightweight HTML instead of heavy-duty graphics. Round trips to the server are minimized, which
means faster browser performance on your desktop computer.

4.21 Wo*ing with lnternet Explorer

With an lnternet connection and lnternet Explorer, you can find and view information about anything
on the Web. Just click the topics below to get started. You'll find more information to help you browse
the lnternet in the Help Contents.

4.21.1 Basic Setup

lf you aren't connected to the lnternet, or you want to create a new connection, click this link.
Tutorial 1 : Set up an lnternet connection
To set up an lnternet connection
tr On theTools menu in lnternet Explorer, click lnternet Options.
O Click the Connections tab, and then click Setup.
tr Follow the instructions on your screen.

4.21.2 Safety in Browsing the Web

Using Content Advisor, you can screen out objectionable content by using industry-standard ratings
that have been defined independently by the Platform for lnternet Content Selection (PICS)
committee.
Using security zones, you can set different levels of security for different areas of the Web to help
protect your computer.
Using the optional Microsoft Wallet, you can store your personal credit-card and shipping-address
information on your computer, and take advantage of secure providers when you connect to
Web sites.

4,21.3 Learning how to Browse the Web Faster and Easier

lf you learn just a few basic things about browsing the Web, such as how to use the buttons on the
lnternet Explorer toolbar, you'll find that browsing the Web is easier and faster.
To start browsing the Web, click any link on your home page, which is the page that appears when
you start lnternet Explorer. You can see whether an item on a page is a link by moving the mouse
pointer over the item. lf the pointer changes to a hand, the item is a link. A link can be a pictuie, a 3-
D image, or colored text (usually underlined).
Now you're ready to find a Web site on your own.

4.22 Using Your Web Browser

Knowing how to move around the Web with your Web browser can really make using the Web much
easier. Although the specific features might differ from browserto browser, there are a few things that
 116 / ELECTRONIC COMMERCE

are common to virtually every Web browser.

O The Location (URL) Box
Most web browsers have a space in which your current
location, or URL, is displayed. This URL
shows you the lnternet address of the web site that yo,
ui"'.rrrenily viewing, in addition to the
specific directory and filename
of the current document.You can usually direcfly
make your browser change to the new location. edit the location and

O Toolbar
The lnternet Explorer toolbar consists of buttons that are
shortcuts for menu commands. They
make browsing faster and easier. click any button on
the toolbar below to find out its function.
0 The"Back,'and,,Forward',Buttons
once you have loaded at least two web pages, you should riotice "Back"
a button appear (or darken).
lf you click on this button, your web browsei will return you
"Forward" button (when darkened or shown)
to the last web page viewed. The
will return v", 6 tn" next web page viewed, in the case
that you have just pressed the "Back" button to view pievious p"g"..
O Refresh Button
tJpdates any web page stored in your disk cache with the
latest content. (when you return to a page
you'vevisited,yourbrows.erdisplays thefilestoredinyouroist<cacne,ratherthanthecurrentpage
on the World Wide Web. This saves download time.)
O Home Button
Returns you to your home page. you can designate any web page
as your home page.
A Search.
Displays a choice of popular lnternet search engines in the left pane. your
search results appear in
the left pane, too. when you click a link, the page appears in the right pane,
so you don,t lose sight
of your search results.
ln MS lnternet Explorer with Search Assistant, get more useful
search results by specifying before-
hand the type of information you're looking for
[such web page, company, or map)
and using a search engine geared toward ihis type. ". "n "Joi"ss,
O Favorites.
Displays a list of the sites (and, with lnternet Explorer 4.0, the
folders, files, and servers)
that you,ve
saved as Favorites. Click on any item in the lisi to jump to it.
When you add a Web page to your Favorites, select "Make available
offline,,to store the most
recently viewed version for offline use. Easily create, move, r"n"r",
or delete folders or files from
options, such as printing.
A Print.
Prints the page you're viewing.This is one way to save information from
the lnternet so that you don,t
have to reconnect to view it again.
You can even print the URL associated with each hyperlink, making
it easy to navigate to the site
later.
O Font.
Lets you display text in a larger or smaller font with lnternet Explorer
4.0.
 GLOBAL INTERNET ./ 117

o Mail.
Connects you to Microsoft Outlook. Express messaging and collaboration client so you can read
electronic mail (e-mail) and newsgroup messages.
o Edit.
Opens a file in Microsoft Word word processor that contains the HTML code for the page you're
viewing so you can see and even edit it.
D "Reload" and "StoP"
Many Web browsers have a cache system.That is, they store f requently-visited documents on
your
compute/s hard drive. Sometimes, you may view a Web page that is often updated f rom your cache,
and you may not have the most recent copy. ln this case, it is a good idea to click yo_ur browser's
,,Reload" "Reload"
bution, which will re-download the newest copy of the current Web document.The
button may also be used if errors occurred in the original downloading of a document.

The "Stop" button can be used to stop the downloading of any Web page to your computer. This can
be usefui if a page is taking too long to download, or is not downloading properly. lf, after you have
stopped the download, you decide you do in fact want to download the document, you may use the
"Beload" button.
o History
List your History sites by date visited, site name, number of visits, or order you visited today. Use
the search toolto find keywords on any of the pages you visited. The Go button !f you prefer, click
Go, rather than pressing eNf gn, after you type a uniform resource locator (URL) in the address
bar.

4.23 lnternet Explorer Web browser

lnternet Explorer makes it easier to get the most from the World Wide Web, whether you are searching
for new information or browsing your favorite Web sites. And built-in lntelliSense technology can
connection
save you time completing routineWeb tasks, such automatically Cetecting your network and
status.
When you start typing a frequently used Web address in the Address bar, a list of similar
addresses
address is wrong, lnternet Explorer can search
app"uis that you can choose from. And if aWeb-page
for similai addresses to try to lind a match.
type a
Search for Web sites by clicking the Search button on the toolbar. Then in the Search bar,
your search results appear' you can vlew
word or phrase that describes what you're looking for. When
the individual web pages without losing your list of search results.
you can also search directly from the Address bar. Just type common names or words, and lnternet
for,
Explorer can automaticallyiake you to the site that most likely matches what you are searching
and list other likely sites as well.
Just use the
Go to other Web pages similar to the one you are viewing, without even doing a search.
Show Related Sites feature.
kind of Web-
Once you're on a Web page, lnternet Explorer can help you complete entries in any
based form. Start typing, ind a list of similar entries appears that you can choose from'
on the toolbar'
Browse through a list of Web pages you recently visited by clicking the History button
ln addition you can reanange or search the History list'
a wide variety of
Listen to broadcast and lnternet-only radio stations while you browse. Choose from
 11 8 / ELECTRONIC COMMERCE
music and talk radio stations, and add them to your Favorites list. The radio toolbar is available in
lnternet Explorer when you installWindows Media player.
Tutorial 2: To open a Web page or folder, or to run a program
D To go to a Web page, type the lnternet address - for example, www.microsoft.com in the
Address bar, and then click the Go button.
D To run a program from the Address bar, type the program name, and then click the Go
button.
lf you know the complete path and file name, you can type them for example:
c : \MsOffice\winword\winword. exe .
a To browse through folders from the Address bar, type the drive and folder name, and then
click the Go button for example:
Tutorial 3 : To link to Web pages you recently visited
tr To return to the last page you viewed, click the Back button.
D To view a page you viewed before clibking the Back button, click the Forward button.
D To see a list of the last few pages you visited, click the small down arrow beside the Back
or Forward button.
Tutorial 4 : To link to a specific Web page
O To return to the page that appears each time you start lnternet Explorer, click the Home
button.
tr To select a Web page from your list of favorites, click the Favorites button.
A To select a Web page from the list of those you visited recently, click the History button.
The History list also displays previously viewed files and folders on your computer.

4.23,.1 What to do if a Web page isn-t working

lf a page you are trying to view is taking too long to open, click the stop button.
lf you get a message that a Web page cannot be displayed, or you want to make sure you have the
latest version of the page, click the Refresh button.

4.23.2 Setting up an lnternet connection using lnternet Connection Wizard

The lnternet Connection wizard provides you with an easy way to get connected to the lnternet.
Whether you've never explored the lnternet before or have spent many hours online, the lnternet
Connection wizard can help you set up a connection.
For new lnternet users, the lnternet Connection wizard creates an lnternet connection for you, and
then displays a list of lnternet service providers (lSPs) and information about their services.You can
sign up for a new account by clicking an ISP in the list.
lf you already have an account with an ISP and want to create an lnternet connection to your
account, the lnternet Connection wizard collects all the necessary information from you and then
creates the connection.
lf you are not already running the wizard, you can start it f rom lnternet Explorer as follows:
O On the Tools menu in the browser, click lnternet Options.
 GLOBALINTERNET /119

tr Click the Connections tab, and then click Setup.

O Follow the instructions on your screen.

4.23.3 Finding the lnformation You Want

Check out the all-in-one search site accessible through Microsoft's home page. Go directly to one of
these search engines: AltaVista, lnfoseek, Lycos, Snap, Excite, Yahoo!, and Metacrawler.
D Click the Search button on the toolbar to gain access to a number of search providers.Type
a word or phrase in the Search box.
tr Type go, f ind, or ? followed by a word or phrase in the Address bar. lnternet Explorer starts
a search using its predetermined search provider.
Note : lf a Web address doesn't work, lnternet Explorer asks if you want to search for similar Web
addresses. You can change this setting so that lnternet Explorer searches automatically without
prompting. For more information, see Related Topics below.

4.23.4 Browser Tips

Take advantage of all the great features of Microsoft lnternet Explorer version 5.0. These tips will
help.
Spot the links
You can tell whether an item on a page is a link by moving the mouse pointer over the item. lf the
pointer changes to a hand, the item is a link. A link can be a picture, a three-dimensional image, or
colored text (usually underlined). Click any'link on a Web page to go to another page within that site
or another site.
Tutorial 4.2 : Display allWeb pages faster
To display Web pages faster:
1. On the View menu in the browser, click lnternet Options.
2^ Click the Advanced tab.
3. ln the Multimedia area, clear one or more of the Show pictures, Play animations, Play
videos, or Play sounds check boxes.
4. lf the Show pictures or Play videos check box is cleared, you can still display an individual
picture or animation on a Web page by right-clicking its icon and then clicking Show Pic-
ture.
S. lf the pictures on the current page are still visible after you clear the Show pictures check
box, you can hide them by clicking the View menu and then clicking Refresh.
Tutorial4.3 : Display previously viewed pages faster
To display previously viewed pages faster:
O On the View menu in the browser, click lnternet Options'
D On the General tab, click Settings.
tr To create more space to store pages temporarily, move the slider to the right'
O To prevent lnternet Explorer from updating pages in the Temporary lnternet Files folder,
click Never.
To change how page colors are displayed:
 120 / ELECTRONIC COMMERCE

1. On the view menu in the browser, click rnt,ernet, options.

2. Change the settings as needed.
3. Display text in a different font
Tutorial 4.4:To display text in a different font:
1. On the view tn€nu in the browser, click rnternet Options.
2. On the General tab, click FontE.
3. ln the Proportional and Fixed-width Jont lists, click the fonts you want.
Tutorial 4.5 : Specify which font and color setting to always use
To specify which font and color settings to always use:
1. On the view menu in the browser, click fnternet options.
2. On the General tab, click Rccessibility.
3. Change the settings as needed.
4. Display text larger or smaller
5. To display text larger or smaller:
6. on the vieyr menu, point to Fontq, and then click the size you want.
Tutorial 4.6 : View Web pages in a different language
Some Web sites offer their content in several languages. You can add languages to your list of
languages in lnternet Explorer so that you can view these sites in your preferied l-anguage.
To view Web pages written in a different language:
1. On the View menu in the browser, click Internet options.
2. On the General tab, click rJang'uages.
3. Click Add.
4. Select the language you want to add.
5. lf you speak several languages, you can arrange them in order of priority. lf a Web site
offers multiple languages, it will supply content in the language with the highest priority.
6. Adding languages does not guarantee that you have a font that can display Web pages in
your preferred languages. You may need to download a multilanguage support pack to
display pages in this language.
7. To download multilanguage support packs, see the lnternet Explorer download page.
Tutorial 4.7 : Add a page to your Favorites
To add a page to your collection of favorite pages:
1. Go to the page you want to add to your collection of favorite pages.
2. On the Favoritee menu, clickaaa to Favorites.
3. Type a new name for the page if you want to.
4. To open one of your favorite pages, click the Favorires button on the toolbar, and then
click the page you want to open.
5. To keep track of your favorite ages, you can organize them
6. Click the Creat,e ln button in the eaa to Favorites dialog box.
Tutorial 4.8 : Adding Personal Gomputing to your Favorites
To make sure you always have access to the latest lnternet news, software updates: and tips and
tricks for using lnternet Explorer, why not add the Personal Computing site to your Favorites list now?
To add the Personal computing site to your Favorites list, follow these steps:
 GLOBALINTERNET /121

1 . On the File
menu of your lnternet Explorer toolbar, point to New, ?fld click window, so you
don't lose your place in this guide.
2. Under the File menu in the new window, click open, and then type
http z / /www. microsoft ' con/ins ider / in the address box .

3. Click ox.
4. When the Personal Computing page has f inished loading, on the Favorites menut click aaa
to Favorites, and click or.
5. Close the new window.
Tutorial 4.9 : Organize your Favorites into folders
To organize your favorite pages into folders:
1. On the Favorites menu, click organize Favorites'
2. Click create New Folder, type a name for the folder, and then press ENTEB.
3. Drag the shortcuts in the list to the appropriate folders.
4. you might want to organize ydur pages by topic. For example, you could create a folder
named Art for btoring information about art exhibits and reviews.
5. lf the number of shortcuts or folders makes ragging impractical, you can use the Move
button instead.
Tutorial4.10 : Change your home page
To change your home page:
1. Go to the page you want to appear when you f irst start lnternet Explorer.
2. On the view menu, click Internet optsions.
3. Click the General tsab.
4. ln the Home page area, click use current.
5. To restore your original home page, click use Def aults'
Tutorial 4.11 : Save text and graphics f rom the Web
When you see text or graphics on a Web page that you like or want to refer to later, you can save
them on your computei's hard disk. Later, you can open the saved file and review it offline.
To save a text or source file:
1. On the toolbar, click pile, and then click save as'
2. Click save to save the file.
Tutorial 412: To save a graPhic
1. Right-click the graPhic'
2. On the shortcut menu that appears, click save Picture As'
3. Browse to the folder where you would like to save the file'
4. Click save to save the file.
lnternel
5. To open a saved file, double-click it from the folder where you've saved it. Microsoft
Explorer will start automatically, and your saved file will appear in the browser window.
Tutorial 4.13 : Add a page to your Links bar
To add a page to your Links bar:
 1 22 I ELECTRONIC COMMERCE

1. Drag the icon for the page from your Address bar to your Links bar.
2. Drag a link from a Web page to your Links bar.
3. Drag a link to the Links lolder in your Favorites list: You can either drag it direcfly to the
Favorites menu and then into the Links folder or you can drag it to the tinks folder when
displaying your Favorites in the Explorer bar.
4. You can also can organize your links by dragging them to a different location on the Links
bar.
Tutorial 4.14 : Create a desktop shortcut to the current page
1. Right-click the page, and then click create Shorrcur.
2' lf the lnternet Explorer window is not maximized, you can also create a shortcut by drag-
ging a link from the lnternet Explorer window to the location you want, such as your desk-
top or a folder.
Tutorial 4.15 : Return to a Web page you've already seen
1. There are several ways to return to a previously viewed Web page:
2' To return to the last page you viewed, you can click the gack button on the toolbar, or press
the gecxspacu key.
3. To see a list of the last few pages you visited, click the small down arrow beside the Back
or Forward button. Then click the page you want.
4' lf you want to view one of the last five pages you visited in this session, click the rite
menu, and then on the list, click the page that you want to go to. This list is started fresh
every time you start lnternet Explorer.
5. To view more pages, including pages you visited in previous sessions, click the History
button on the toolbar, and then click the appropriate folder.
Tutorial 4.16 : Change the appetarance of the toolbar
To change the appearance of the toolbar:
You can move or resize the Address bar or Links bar by dragging them up, down, left, br right. you
can even move them into the menu bar. To make more room on your screen, you can hide toolbar
button labels.
1. Just right-click the toolbar, and then clear the check mark next to rexr Labels.
2. You can hide the Address bar or Links section of the toolbar by right-clicking the toolbar
and then clearing the check mark for each item you want to hide.
3. You can add items to the Links bar by dragging the icon f rom the Address bar or dragging
a link from a page.
4. You can rearrange items on the Links bar by dragging them to a new location on the bar.
5. You can use smaller Microsoft Office-style toolbar buttons. On the vlew menu in a browser
window, click rnternet opt,J.one, dnd then click the Advanced tab. ln the Toolbar area,
selectthesnre1l l-cons check box.
The radio toolbar is available in lnternet Explorer when you installWindows Media Player,
Tutorial4.17 : Changing fonts and background colors
When Web authors and designers create Web pages, they often specify particular font colors and
sizes, typefaces, and background colors. These settings are specified lor each item, or in a "style.
sheet," which is a type of template for specifying how ditferent styles should appear throughout a
Web page or site.
 GLOBALINTERNET /123
You can override any or all of these settings, which is useful if you have limited or low vision.you can
specify your font and color preferences for all pages that do not use style sheets, and then you can
specify whether to use any or all of your preferences on pages that use style sheets.
Tutorial 4.18 : To correctly display Web pages encoded in any language
Most Web pages contain information that tells the browser what language encoding (the language
and character set) to use. lf the page does not include that information, and you have the usuaily
determine the appropriate language encoding.
Tutorial 4.19 : To turn Auto-Select on
0 On the view menu in rnternet, Explorer, point to Encoding, ond then make sure Auto-
Select has a check mark. lf it doesn't, click it.
D lf you are prompted to download language support components, click oownload.
0 lf Auto-Select cannot determine the correct language encoding, and you know what language
encoding it should be, you can manually select it.
Tutorial 4.20 select the language encoding for a Web page. On the View menu, point to Encod-
=To
ing, point to More, and then click the qppropriate language.
lf you are prompted to download language support components, click Download.

Notes
O lf the Auto-Select feature or a specific language pack is not installed on your computer,
lnternet Explorer will prompt you to download the files as needed.
O Adding languages does not guarantee that your computer has a font that can display Web
pages in your preferred languages.To be prompted when fonts need to be added, click the
Tools menu, click lnternet Options, click the Advanced tab, and then select the Enable
lnstall On Demand Cnect box. Or you can download a Multilanguage support pack <http://
www.microsoft.com/isapi/Redir.dll?prd=ie&pver=5.0&clcid=&ar=ienews> to display pages
in this language.
D You can add a Language Encoding button to your toolbar to make switching between languages
quicker.
Tutoriaf 4.21 turn off graphics to display allWeb pages faster
=To
D On the Too1s menu in lnternet Explorer, click lnt,ernet options.
D Click the Advanced rab.
A ln the Multimedia area, clear one or more of the Show pictures, Play animations, Play
videos, or Play sounds check boxes.
Tips

lf the Show pictures or Play videos check box is cleared, you can still display an individual
picture or animation on a Web page by right-clicking its icon and then clicking Show Pictur:e.

lf the pictures on the current page are still visible after you clear the Show pictures check box,
you can hide them by clicking the View menu and then clicking Refresh.
Tutorial 4.22:To create more space for temporary lnternet pages
tr On the ToolE menu in lnternet Explorer, click tnternet options.
D On the General tab, click settings.
 124 / ELECTRONIC COMMERCE

O To create more space to store pages temporarily, move the

4.23,.5 The Cache and Toolbar

You've arrived at this page, so you must already know something about how
to use a Web browser.
Just in case you haven't yet used some of the features of Microsoft. lnternet Explorer,
here,s a guide
to them.
When you explore the Web, your browser keeps track of the pages yorJ've visited and saves
them on
your hard disk so they'll load faster when you return to them. This saves you
time and money
because you can view the saved pages without being connected to the lnternei.The saved filesyour
"temporary lnternet files"are stored in your disk ca che.
Tutorial 4.23l. To empty your lnternet Explorer disk cache
1. When you browse, your disk cache can fill up with files you no longer need. Here's how to
empty your lnternet Explorer disk cache.
For lnternet Explorer version 4.0:
1' On the view menu of your lnternet Explorer toolbar, click rnrerner optione.
2. Click the General tab.
3. ln the Temporary lnternet files area, click Delere Fites, then click ox.
4. Click ox to close lnternet Options.
To change the size of your lnternet Explorer disk cache
You can change the amount of hard-disk space reserved for your disk cache. A larger disk cache
may display previously visited pages faster, but it will decrease the amount of hard-disk space
available for other files. Here's how to set the size of your disk cache.
For lnternet Explorer 4.0:
1' On the view menu of your lnternet Explorer toolbar, click rnternet oprions.
2. Click the General tab.
3. ln the Temporary lnternet Files area, click serrings.
4. Move the arrow on the Amount of Disk Space to Use slider to the percentage of disk space
you want designated for your disk cache, then click ox.
5. Click ox to close lnternet Options.

4.23.6 Sharing Bookmarks and Favorites

Favorites, known as bookmarks in Netscape Navigator, are a convenient way to organize and link to
Web pages that you visit
Netscape bookmarks
On the Favorites menu, click the lmported Bookmarks folder to view them. lf you use lnternet
Explorer on several computers, you can easily share favorites between computers by importing
them. Also, if you use both lnternet Explorer and Navigator, you can keep your favorites and book-
marks up-to-date with each other by importing them between programs.
O To import bookmarks or favorites, click the File menu, and then click lmport and Export.
A To export favorites to bookmarks or favorites on the same or another computer, click the
File menu, and then click lmport and Export.
 GLOBALINTERNET /125
Notes

D Exported favorites are saved as a regular HTML file, so either lnternet Explorer or Navigator
can import them. You can export a selected folder in your Favorites list, or all of your
favorites.

tr The exported favorites file is fairly small, so you can copy it to a floppy disk or network
folder, or attach it to an e-mail message if you want to share the favorite items with other
people.

4.2r.7 To Enter Web lnformation more Easily

The AutoComplete feature saves previous entries you've made for Web addresses, forms, and
passwords.Then, when you type informaiion in one of these fields, AutoOomplete suggests possible
matches. These matches can include folder and program names you type in the Address bar, and
search queries, stock quotes, or information for just about any other f ield you f ill in on a Web page.
1. ln the Address bar, a field on a Web page, or a box lor a username or password, start
typing the information.
2. lf you've typed a similar entry before, AutoComplete lists possible matches as you type.
3. lf a suggestion in the list matches what you want to enter in that field, click the suggestion.
4. lf not, continue typing.
Notes
tr The information used for suggested matches is stored on your computer and is encrypted to
protect your privacy.
tr Web sites cannot gain access to this information. They can only receive what you explicitly
enter in forms.
tr When typing information in Web forms, and typing passwords, you can remove an item f rom
the list of suggestions by ciicking the item and then pressing the DELETE kpy.
4.2I,-g l'laking Pages lvailable for Offline Viewing
When you make a Web page available offline, you can read its content when your computer is not
connected to the lnternet. For example, you can view Web pages on your laptop computer when you
don't have a network or lnternet connection. Or you might want to
You can specify how much content you want available, such as just a page or a page and all its links,
and choose how you want to update that content on yout'computer.
lf you just want to view a Web page offline, and you don't need to update the content, you can save
the page on your computer.T[ere are several ways you can save the Web page, f rom just saving the
text, to saving all of the images and text needed to display that page as it appears on the Web.
What would you like to do?
O Make the current Web page available offline
D Make an existing favorite item available offline
D Save a Web page on your computer

Notes
D ln previous versions of lnternet Explorer, ollline viewing was called "subscribing."
 126 / ELECTRONIC COMMERCE

D lf you used channels in a prevtous version of lnternet

Explorer, you can find them in the
Channels folder in your F worites list.
Tutorial 4.24 : To view web pages without being connected
to the rnternet
After you mark your favorite pages for viewing offline, you
can view them offline by using the follow-
ing procedure.
1' Before you disconnect from the lnternet, click the
toorE menu and then click
Synchronize.
2' when you're ready to work offline, click the Fire menu,
and then click work of f rine.
3. ln your FavoriteE list, click the item you want to view.

Note

When you choose to work offline, lnternet Explorer will always

start in offline mode until you
click Work Offline again to clear the check mark.
Tutorial 4.25 : To print a Web page
O On the File menu, click print.
O Set the printing options you want.
Tips
To print a frame or item in a web page, right-click the frame
or item, and then click print or print
Frame. For Help on an item, click at the top of the dialog
box, and then click the item.
Tutorial 4.26 :To save a Web page on your computer
D On the FiIe menu, click save As.
tr Double-click the folder you want to save the page in.
A ln the rite nane box, type a name for the pagj.
tr ln the save as type box, select a file type.
To save all of the files needed to display this page, including.
This option saves each file in its
original format. To save all of the information needed to displayihis page
in a single MIME-encoded
file, click web Archive. This option saves a snapshot of the current
web page. Note This option is
available only if you have installed outlook Expiess 5 or later.
To save lusitre current HTML page,
click web Page, HTML only. This option saves the information on
the Web page, but it does not save
the graphics, sounds, or other files.
To save just the text lrom the current web page, click rext
only. This option saves the information on
the Web page in straight text format.

Notes
D With Web Page, complete and Web Archive, you can view all
of the Web page offline, without
adding the page to your Favorites rist and marking it for offrine viewing.
o When you choose Web Page, complete, only the current page
is saved. lf you want to view
web pages and the pages they rink to whire offrine, see ierated ropics.
Tutorial 4.27 : Saving pictures or text from a Web page
As you view pages on the Web, you willfind information that you'd like
to save for future reference or
share with other people. You can save the entire Web p"g" or any part
of it: text, graphics, or links.
 GLOBAL INTERNET /127
You can print Web pages for people who don't have access to the Web or a computer.
O To save a page or picture without opening it
Right-click the link for the item you want, and then click Save Target As.
O To copy information from a Web page into a document
Select the information you want to copy, click the Edit menu, and then click Copy.
O To create a desktop shortcut to the current page
Right-click in the page, and then click Create Shortcut.
O To use a Web page image as desktop wallpaper
Right-click the image on the Web page, and then click Set as Wallpaper.
O To send a Web page in e-mail
Click the File menu, point to Send, and then click Page By E-mail or Link By E-mail. Complete the
mail message window, and then send the message. Note that you must have an e-mail account and
an e-mail program set up on your computer.
Tutorial 4.28 : ChooseYour Own Home Page
lf you are using Explorer, first go to the Learn the Net home page. Now click the View menu, then
select Options. Now click the General tab. Finally, click the Use Current button.
As much as we would like Learn the Net to be your home page, you can select any page you want.

4.?A Netscape (Netscape Communications or Netscape Navigator)

Mosaic was the first widely-distributed graphical browser or viewer for the World Wide Web. lt is
usually considered to have been the software that introduced the World Wide Web ( and the lnternet)
to a wide general audience. Once Mosaic was available, the Web virtually exploded in numbers of
users and content sites. (Of course, the software depended on the recent invention of the Hypertext
Transport Protocol , or HTTP, by Dr.Tim Berners-Lee.)
Mosaic arrived in 1993. Marc Andreessen, then in his early 20's, is credited with inventing or leading
the development of Mosaic. He developed it at the National Center for Supercomputing Applications
(NCSA) at the University of lllinois in Urbana, lllinois. Andreessen and others went on to become
part of Netscape Communications, originally called Mosaic Communications, that developed today's
most popular browser, Netscape (it's full name is Netscape Navigator).
Netscape is one of the two most popularWeb browsers and also the name of a company, Netscape
Communications, now owned by America Online (AOL). Currently, almost all lnternet users use
either Netscape's browser or Microsoft's lnternet Explorer (MSIE) browser, and many users use both.
Although Netscape was initially the predominant product in terms of usability and number of users,
Microsoft's browser is now considered superior by many users (although many other users see them
as roughly equivalent) and has taken a slight lead in usage.
Netscape's browser originally was called "Navigator," and is still called that in the suite of software,
Communicator, of which it is now a part. Navigator was developed in 1995 by a team led by Marc
Andreessen, who created Mosaic, the first Web browser that had a graphical user inter{ace, at the
University of lllinois' National Center for Supercomputing Applications (NCSA) in 1993.
The latest version of Netscape Navigator is 5.0 (Year 1999), now available in a beta version. Naviga-
tor can be downloaded as part of the Communicator suite f rom Netscape's Web site at no charge.
 128 / ELECTROI{IC COMMERCE

cD-RoM versions can also be purchased in computer stores and are sometimes
distributed freely
as promotions.
A primary source.of revenue for Netscape and AOL is
tiff:$:'j;jT31
it devetops and has marketed on rhe ru.."., *
otlts
also envision the Netscape Web site, now transformed , as a leading source
of revenue through advertising and e-commerce.
NCSA at the University of lllinois in Urbana, lllinois is the home
of the first Web browser that had a
graphical user interface. lts inventor, Marc Andreessen
,lhen 22years old, later lead the creation of
the Netscape browser and became a founder of that company. T'he original
browser, Mosaic, exists
in a more advanceci version.
Almost everyone surfing the Web uses either Netscape Navigator or Microsoft
lnternet Explorer, and
if you're stuck using your ISP's proprietary browser, you're going to be
missing out on a lot of pages
designed with the "Big Two" in mind. lf the ISP says you nave to use their browser, it's
time to look
elsewhere for lnternet access.

4-25 Navigating the world wide web with Netscape Gommunicator

Netscape Communicator is a suite of softwAre programs that includes the well-known
Netscape
Navigator Web browser. The Standard Edition suite consists of the following components:
O Navigator:Webbrowser
D Messenger: e-mailclient with Web capabilities
D Collabra: client for Usenet News discussion groups
O Composer: HTML editor with What-You-See-ls-What-You-Get (WyStWyG) capabilities
D Conference: audio/video conferencing, chat, whiteboarding, file sharing, collaboration
tools, and file transfer
o Netcaster: subscription capability to push channels on the Web as well as offline browsing
capability
This section will focus mainly on the Windows 95 version of the Navigator Web browser.
With the
proper software installed on your local computer, Navigator can retrieve several
kinds of images as
well as video and sound.You can download the Communicator suite with a variety of plug-ins
configured
to the browser, including:
B The Cosmo Playerto view 3D sites created with Virtual Reality Modeling Language (VRML)
(file suffixes .wrl, .wrz)
o Netscape Media Player for streaming audio metafiles (file suffix.lam) Live Audio for
sound files (file suffixes .au, .aiff, .wav, .midi, .la, .lma) The QuickTime'player for video
(file suffix .mov) NPAl32 Dynamic Link Library to play video in Windows (fite suffix .avi)
You can install Communicator in yourWindows-based or Macintosh machine.The program is avail-
able for downloading on the Netscape home page: http://home.netscape.com/.To use
the program to
access the Web, you need an ethernet connection or a dialup connection through an lnternet
Service
Provider.

4.25.1 Anatomy of Xetscape

When you first launch your web browser, usually by double-clicking on the icon on your desktop, a
predefined web page, your home page, willappea'.With Netscape Navigatorfor instance, you
wiil be
taken to Netscape's NetOenter.
 GLOBALINTERNET /129

Tutorial 4.29 : ChooseYour Own Home Page

You can change the home page that loads when you first launch your browser.
D With Navigator 4.0, go to the EdiE menu
D Select Preferences.
tr ln the Home page section, type in the new web address in the box.
D lf you want Learn the Net to be your home page, enter:
http z / /www. learnthenet' com
D Any time you want to return to your home page f rom any other website, just click the Home
button on the toolbar.

4.25.2 The Toolbars

Navigator has three toolbars at the topof the screen:
tr NavigationToolbar:
Contains icons for navigating among Web pages, searching the Web via sites chosen by Netscape'
printing, and security options.
D LocationToolbar:
Just under the toolbar, you will see a box labeled "Location," "Go To," or "Address."This is where you
type in the address of a website you want to visit. After you ente.r it, press the Return or Enter key to
access the site. Contains the browser's Bookmarks file, and the Netsite window that contains the
address of the current Web Page.
 130 / ELECTRONIC COMMERCE

O PersonalToolbar:
contains the bookmarks in the Personal roolbar folder of the bookmarks file.
O The Menu Bar
Located along the top of the browser window, the menu bar offers a selection of things you can do
with a web page, such as saving it to your hard drive or increasing the size of the text on a page.
Many of the choices are the same as the buttons on the toolbar below, so don't try to learn everything
now. Click once on a word to access the drop-down menu, then click on the appropriate selection you
want to make.
tr The Status Bar

At the bottom of the web browser you'll find a window known as a status bar. You can watch the
progress of web page transactions, such as the address of the site you are contacting, whether the
host computer has been contacted and'the size of the files to be downloaded.
The Scroll Bar
The vertical bar to the right of the browser lets you scroll a down and up a long web page. You can do
this by placing your arrow cursor on the up or down arrows and holding down your left mouse key.you
can also place the arrow on the slider control, hold down the left mouse key and drag the slider.
lf a web page is too wide to fit your screen, a horizontal scroll bar will appear at the bottom on your
browser window.This scroll bar works the same way.
Tutorial 4.30 : Book Marking Your choices
The program comes with certain links pre-installed.These can be deleted, or you can add your own.
To place your own bookmarks here:
D Go to a Web page that you want to bookmark
O Place your mouse over the icon to the left of the word "Netsil€." This message will brief ly
appear:"Drag this to create a link to this page."
D Hold down the left mouse button and drag from this icon into the Personal Toolbar. The
bookmark will be installed.
Tutorial4.31 : Making theToolbars Disappear
You may make any of these three toolbars disappear during a session in order to give yourself a
larger viewing window. There are two ways to do this:
O Click on the far left hand grill of the toolbar. To bring back the toolbar, click again on the
grill.
O Selectview>Hide Navigation,/Location/pereonal Toolbar
When to Use the STOP Button
There's a good reason why the Web is referred to as the World Wide Wait. lf you can'l connect to a
site, use the STOP button and try again later, especially if you are trying to access a popular site.

ffi@
 GLOBALINTERNET /131
4.26 The Access lndicator
Both Navigator and Explorer have a small picture in the upper right hand corner of the browser. When
this image is animated, it means that your browser software, known as a client, is accessing data
from a remote computer, called a server. The server can be located across town or on another
continent'Your browser downloads these remote files to your computer, then displays them on your
screen. The speed of this process depends a number of factors: your modem .pe"d, your lnternet
service provider's modem speed, the size of the files you are downloading, how busyihe server is
and the traffic on the lnternet.

4.25.t Some Browser Tricks

As with most software, there is more than one way to accomplish a task. Here are a few other
features to help you navigate:

4: yqq hop from page to page and website to website, your browser remembers where you've been.
With Navigator, select l'listory f rom the drop-down list under the Communicator menu. With lnternpt
Explorer, click the History button on the toolbar. There you'll find a history of all the web pages you
have visited during a specified period of .time. To revisit a page, just click on the address.
Another way move between pages with Navigator is by clicking the right mouse button. A pop-up
menu will appear and you can choose to move fonruard or back.
Tutorial 4.32 : How to access Resources on the lnternet with Navigator
(1) lf you have the URL (address) of a Web page on the lnternet. Type the U RL to go directly to
the page. Navigator gives you two ways of doing this.
(a) Type the URL in the Netsite bar at the top of the screen. To accomplish this, click on
the Netsite bar to highlight the current URL. Then type in the new URL and press the
Enter key.
(b) Click on File/Open Page location at the top left of the screen. A pop-up window will
appear with a blank line. On that line, type the URL of the file you wishto retrieve.
Press the Enter key.
lf you wish to reach the University Libraries home page, type this URL: http://www.albany.edu/
library/.
(21 lf you are on a web page
Click on words or images which change the shape of the mouse pointer f rom an arrow to a hand and
display a URL on the bottom of the screen when the mouse pointer is placed over it.The blue words
on the display screen or the purple words on the display screen (the purple color indicates that the
resource has been recently accessed on your terminal).
Note: The colors blue and purple are generally the default colors for text that contains a link, and
text representing a link that has been visited in the recent past. Nowadays, Web page creators
are coloring their links in all sorts of ways.The best way to figure out which text represents a link
is to point your mouse over the words and see if the pointer shape changes from an arrow to a
hand.The hand represents a link.
After you click, the file will be retrieved and will display on your screen.
Note: Often the clickable words will be different colors than blue or purple. Document creators
have the option ol specifying colors.
 132 / ELECTRONIC COMMERCE

(3) lf you want to use pre-installed links

(a) Navigator's resource tinks: Navigator offers two icons on the navigation bar at the top of
the screen with access to pre-installed resources. Search takes you-to the well-known Net
Search page. Be aware that the services on this page have paid millions of dollars for the
privilege of being located here, There are a great many more search engines that should
also be explored. Guide allows you to search People, Yellow Pages, Wh-at's New, What,s
Cool, etc.
(b) Bookmarks: The Bookmarks option on the top menu bar contains a list of resources placed
there by previous users of Netscape at your terminal. This list can be a source of interest-
ing lnternet resou rces.
Tutorial4.33 : Traveling the WEB with Navigator
Navigator allows you to move back and forth among the Web pages that you visit during a session.
(1) To go back to Previous Sites
Click on the large Back left arrow on the navigation bar near the top left corner of your screen. Each
time you click on this arrow, you will return to the next previous site that you visited. lf you hold your
mouse over the Back arrow, the title of the upcoming page will briefly appear. Or, click on Go in the
menu bar at the top of the screen. This presents a list of several previous sites you have visited.
Click on any one of these choices to return to the desired site. This is the equivalent of clicking on
the Back arrow several times.
(2) To Move Forward
When you have returned to previous sites vrrith the Back arrow, you can go fonivard again by clicking
on the large Forward right arrow next to the Back arrow. lf you hold your mouse over the Forward
arrow, the title of the upcoming page will briefly appear. Or, click on Go in the menu bar at the top of
the screen. This presents a list of several sites you have visited. Click on any of the more recent
choices to return to the desired site. This is the equivalent of clicking on the Fonruard arrow several
times.
(3) AdditionalOptions
Reload: Re-retrieves the document you are currently viewing.This is useful if the document does not
load successfully or completely Home:Takes you back to the document that was on the screen
when you first started Navigator
Stop: Stops the transfer in progress. This is usef ul if a link is not successf ully or speedily retrieving.
EdiUFind in Page: Navigator allows you to do a word search of the document on your screen.
Choose this option and type in the word or phrase you wish to search.
File/NeMNavigatorWindow: You can open up a second copy of the browser by using this feature.
This allows you to visit more than one Web page at a time.
Bookmarks/Add Bookmark: When you have found a site that you wish to return to at a later time,
select this option to add the URL to the bookmark list. When you wish to return to that document,
select Bookmarks and run your mouse down the list of title to choose a page to which you wish to return.
You can also delete bookmarks:
1. Click on BookmarksiEdit Bookmarks
2. Highlight the bookmark you wish to delete by clicking on it with the mouse
3. Press the Delete key on your keyboard
 GLOBALINTERNET /133

The term "internet" is used to identily any collection of networks into a larger Wide Area Network
(WAN). You can have an internet of AppleTalk-based computers or one of PCs entirely located over
several geographical areas. However, "The lnternet" or "The Global lnternet", as most people call it,
is a proper name for a certain internetwork of computers around the world. lt is also known by other
names:"The Matrix" (Quarterman, 1990), "Cyberspace", and now often incorrectly, the "lnformation
Superhighway" of the National lnformation lnf rastructure (llTF, 1993). This last name has been ad-
hered to the lnternet accidentally since the National lnformation lnfrastructure suggests the lnforma-
tion Superhighway only as the concept which may or may not be based upon lnternet technology
until final approval by the Government of the United States.
The lnternet itself is a conglomeration of thousands of computer neiworks utilizing a common set of
technical protocols to create a worldwide communications medium (RFC 1594, 1994). The lnternet
has an estimated population of 20 million users and has a presence in over 70 countries. This
massive group of users reach the lnternet through their computers and terminals at educational
institutions, commercial lnternet Access Providers, and other organizations.
These individual networks range f rom commercial medium to large corporate WANs. Each of these
individual networks are controlled by different organizations, are of different sizes, and use a range
of network technologies (Malamud, 1993). They are united by common communications protocols
and services. Throughout most of the lnternet, you will find the same services, irnplemented in a
variety of forms on a range of computer operating systems and hardware.

4.26.2 Who Controls the lnternet?

Plainly speaking, no one. The lnternet is made of several thousand independent networks, each of
which have their own administrative authorities. However, the general direction of the lnternet is
organized by the lnternet Society, a vo!untary membership organization whose purpose is to promote
gtoOat inlomation exchange through lnternet technoiogy (RFC 1462, 1993).The technical aspects of
the lnternet is handled by the lnternet Architecture Board (lAB) and its constituent subdivisions.
They design and approve new network protocol software and network applications that work on the
lnteinet on a large scale. Another authority, known as lnterNlC, is responsible for the registration of
allcomputers and networks connected to the lnternet as wellas providing special consulting serv-
ices to the member networks.The lnterNlC is made up of several commercial organizations namely
GeneralAtomics which owns CERFNet, Performance Systems lnternational (PSlNet), and AT&T.
PSlNet and CERFNet are two of the larger networks of the lnternet.
The IAB and lnternic, however, do not command the daily workings of every section of the lnternet'
This is left to the Network Administrators responsible for each individual network.These individual
networks can also make rules and regulations commanding the proper use of their data network and
their network services. Some networks prohibit commercial data traffic and other prevent insecure
local and remote data traffic.

4.26.3 Who Created the lnternet?

The lnternet is an outgrowth of a projectfrom the 1970's by the US Department of Defense Advanced
Research Projects Agency (ARPA).The ARPANET, as it was then called, was designed to be a non-
reliable network servile for computer communications on over wide area. ln 1973 and 1974, a stand-
ard networking protocol, a communications protocolfor exchanging data between computers on a
network, emeiged from the various research and educational efforts involved in this project. This
became known as TCP/IP or the lP suite of protocols (Lynch, 1993)
The TCp/lP protocols enabled ARPANET computers to communicate irrespective of their computer
 134 / ELECTRONIC COMMERCE

operating system or their computer hardware.

we call such a protocol heterogenous. UNIX was
::tlil,:il"'1?:f,"f::,?:l^t,,?l/lt:::iT: "lT:.t.v*"y'.i,s with the UNrX operatins system
as UNIX was spread throughout the many educationaiinstitutior"s'a#;;#irH;jru",:il::Jl
such as uNlX and VMS soon became the mosr poputar
ll,ll;:::'svstems method of accessing the

at make up the lnternet

ctronic mail appeared in
lnternet gopher made its

ln 1990, the ARpANET had had many other net

components, and so on) from somewhere; every
developing and loading components into the serue
server vendors rely on third_party lDEs and t
bundle integrated development toois with the se
you're trying to achieve.

take advan-
have a rich
trying to do

opte who can tive with pooro""rT"o;rTi;1

rate lT shops
- where productivity can be
r documentation, higher abstraction access ,

t be the defining features, instead of whether the

4.26.4 Pure.Play Web Application Server

One category of application server is pure_
some sort of standard component model su
on scalability and connectivity to various data so

server. Since HTML page generation is done via

build pages or use any HTML IDE that generates

Server (NAS). NAS allows both Java ancl C++

4.25.5 Develop.and.DeployServers
A develop-and-deploy server is one that has a well-integrated development
environment and an
application server bundled together. lt allows developers-to quickly
build and immeolatety deploy
 GLOBALINTERNET /135
web applications' The focus is on highly interactive development with
a sophisticated environment.
one of the products in this category is SilverStream Application Server.
SilverStream is a 100-
percent pu components on the server. SilverStream's big

deveroper
claim is tha
;i:,"i:,o"T".[1i":i:::i'fi1Hil";3i5'i;Li
Silve.rStream's page generation see "Building object-orienteo"weu pages
witr Sitverstream,,in the
Lab Note section of this issue.)

nd say, "Wow, this is cool! lt,s like Visual Basic or

wonder how anyone could use this tool because it
n, and it doesn't offer the fine-grained control that
HTML editor to create pages for SilverStream, it
would take a lot of manual tweaking to create the hooks that tell the Silver'Strlam
server what to do.
Sun NetDynamics ( see " Online") seruer and tools are normally included in
this category as well.
is Allaire Cold Fusion. Cold Fusion has its own
Cold Fusion applications are built by putting code
e very similar to server-side includes _ the Cold
piles a server-side class that will run the logic
environment is included with Cold Fusion that
s visually. The result develop_
ause of the server's gs. Other
t Software's HahtSit bynamo/
Powersite combo. Listing Two, taken f rom one of cold Fusion,s sampl
the code
required to create a simple data entry form.

4.26.6 Application Servers from Client lserver vendors

Another set of products that might appeal to clienUserver developers are servers from
current tool
vendors. For example, if you work in a Visual Basic or PowerBuilder shop, you'ttOe
interested in
Microsoft MTS or Sybase Enterprise Application Server. MTS hosts COM components (and
not
many application servers are adopting COM as a component st
3.0. hosts almost any type of component, including powerBui
native support for PowerBuilder components) :b developers
etary" features, ,but to existing clienVserversrs, they mean
ing code.
Be aware that Microsoft Visual lnterDev is not an application server. Visual lnterDev
creates Active
Server Pages (ASPs) that are loaded and executed inside Microsoft's llS Web server.
ASp is a page
engine, not an application server. The combination of ASP and MTS results in an apiiication
server
with a page-development environment.
Application servers c
By providing the abilit
rity, processing logic,
seruers allow scalable HTML and distributed cli
corporate lT development. Because Web development and corporate lT development have typically
been separate and have had different goals, the new application server market seems cluttered and
its messages are mixed. What may seem to be the perfect server to one group might look like the
dumbest design around to another. Over the next year, the application servlr markei will most likely
splinter into three groups: pure enterprise servers that are iool independent, develop-and-deploy
seryers that integrate tools and servers, and page servers that focus only on pages u"i.u. three-tier
 136 / ELECTRONIC COMMERCE

clienvserver' I think the servers will begin to look more like

each otherand that
the primary
differentiator
will be how productive and robust th-e development environrn"ni
1.. As the market becomes more
segmented, there will also be more consolictation
players will eitherbepurchased - as winners appear
by rarger vendors or fade
-' in each ."i"-g*y, the other

"*"},.
ea of the types of applications that
nd maintaining those applications.
cess, scalability, openness, devel_
r viability.
P.rices of application servers vary considerably.
also charge per developer. Cost varies from si
concurrent user pricing. prices range from $A5OO
less of the application server you choose, one t
develop applications today
The "Web"
- iegardless of what
u could ship
imagine the
documents

rucks over the same lnternet as the nuts-and-bolts

to your door. That special
es are Web server comput-
or, of course, is your Web

Like e didn't play a big part in the creation of the World Wide Web.The
Web in 1980 at brnrtl iEurope"n Particle Physics Labcrarory) by Tim
Bern e first "Web" software on Steve Job's Nextstep operating system,
on a Next UNIX cube.) -'-----r
By the early '90s, the World^Wid9 Web was poised. Several UNIX
browsers were kicking around when
Marc Andreessen of the NCSA (NationalCenterfor Supercomputing
Applications at th-e University of
lllinois at Urbana-Champagne) developed an easy-to-use browserfor
x-winoows, and then Microsoft
Windows in 1993. Andreessen left NCSA and started his own browser
company, Netscape Commu-
nications. The commercialization of the "Web" started in 1994, when
only about 1 ,5oo sites existed
worldwide.

4.27 Browsing vs. Building

what's the difference between browsing a w9b site and setting up one of your
own? To browse a site,
you first have to connect your computer to the lnternet.
UnleIs you want to pay a $1 ,ooo or more a
month to wire your home or office computers directly to the lnternet, you'll
generally use someone.
elses direct, high-speed lnternet connection.That "someone else" is an lnternet
service provider
(lSP)' The ISP pays the big bucks to have c.omputers sitting right
on the lnternet. To get from your
home or office to the lsB you use telephone lines and a moo-emlwhen you
want to broirse, or check
your e-mail, you dial in-modem to modem to your lSP. lt connects you
to the lnternet and its Web
seruice and also offers e-mailseruice.
once you're patched into the lnternet-via your ISP-you start running your Web
browser software.
Browser software understands the language of worid Wide Web tralfic running
on the lnternet. lt
 GLOBAL INTERNET /137

understands the rules that govern Web-service traffic, known as the "transport" rules, or protocols.
ln browsing, you've noticed that each Web page has an address, listed as something like "http://
www.netobjects.com." Ever wonder what "http" stands for? lt means Hyper Text Transport Protocol.
Placed at the beginning of the address, HTTP is saying "l want to make a Web-based connection
over the lnternet, to the following address. Handle the data transportation issues for me."The rest of
the address is called a Universal Resource Locator, or URL. Every page on the lnternet can be
reached by a specific URL. lt's a pointer to a specific page, just like your street address is a pointer
to where you live or work.

4.28 lSP Web hosting

Getting your own Web site means creating Web pages and putting them where folks can find them
overtl're lnternet. Unlike browsing, yourWeb pages can't sit on your home or office computer, unless
those are wired directly to the lnternet. A modem connection from an iSP to Web pages on the
computer just won't do the job.You'll need to rent disk space on your ISP's Web server computer' As
we described above, a Web server is like a warehouse of Web pages sitting right on the lnternet,
ready to hop on and travel to whomever needs them, courtesy of the HTTP service.That means that
as long as the Web server is up and ru'nning, anyone in the world, practically, can visit those pages.
lf you're already paying for an lnternet connection, your ISP can usually provide some Web server
sp""". Many ises actually provide their e-mail customers with free Web server space for
noncommercialWeb pages mine gives me 10M8.
Of course, the f ree route doesn't get you avery snazzy Web site address. To get to my humble, self-
promotional site, for example, you have to browse for http://id.mind.net/-bweibel' lf I wanted some-
ihing like http://www.bobweibel.com, I'd have to spend about $160 to set up the site and to register
the bobweibel.com "domain name", plus $40 a month for lnternet service, instead of just $10, and an
addition g35 a year to keep "bobweibel.com" registered. Click here to read more about domain names.
Also, as your site and the traffic to anrl f rom it grows, the fee you'll pay someone for hosting your site
will grow. Web server providers look at the total amount of data going to and fromlour site-the
"ban-dwidth, " in tech talk. And they look at the amount of server disk space you use. The more you
use, the more you'll pay.
I am not aware of any search options for sites without them other than the "Find on Page" option in
your browser. This ajlows you to look for specific text strings on each page you visit, but not the
Lntire site unless you visit each page of that site and use that "find" command. ln both netscape and
explorer that is "command F" or choose f rom your menu bar first "Edit" then "Find".
I know that is not your desire, but that is the only option I am aware of . lf a site is well placed in the
search engine you are using, you can sometimes limit your search to a particular site within the
results tist. Rt Google.com you can choose a link below each match that says "similar pages". At the
Open Directory Project http://dmoz.org you have the option to "search Within Results". At Open
Directory there is also a very handy list of links at the bottom of each results page that will allow you
to searc-h at EIGHT other search engines plus Yahoo with a single click, maintaining your search
query for you!
At lnfoSeek/Go network http://infoseek.go.com you choose first "Find Similar Pages" link below
"
each result. When those results return, you can choose the link that says "More Results from . . '
the same domain. The lnfoSeek f unction will obviously only work for sites indexed by lnfoSeek. This
is probably the closest to what you are after. Northernlight.com oifers the option in some search
results that show a blue folder for "More results f rom this site" but they don't show up on every result.
 138 / ELECTRONIC COMMERCE

Finally atYahoo and open Directory, you can search

within categories. lf I was searching for,!etski,,
::]:E:1,:T^.-11:g^"jy-_T"1". ' ,
Recreation outooois ;B;;lrs
> personat watercrafr >,,and
search only in related categories that show up in the search results. yahoo
provides suggested
categories that are within the same area of interest.
software that you host.on your own computer cannot do this
without going to the search engines f irsl
to gather the information and then offering you choices
from among the results it has gathered.
Although there are s.ome software programs like this,
they are varieo and differ dramatically in
effectiveness depending on your needsior precision of resuits.
Domain name hijacking
The coso of hijacking I've trademarked a name, but the domain
name is already taken, and was
reserved right after I registered my trademark by another
company. Do I have a-lejat right to the
domain name?
http : / /www. ndweblaw. con/home,/donainnames . html
This link is a page titled "Domain Names, A Trademark Owner's
Nightmare,,and contains an article
and citations to cases that have been well publicized about
domain name hijackinj.
People who do this may be doing it intentionally or innocenily,
but generally, you don,t have a case
unless you've got a long established use of the irademarked
name ano can prove that the registrant
was intending to extort excessive fees from you in the hopes yo
r'o uuy the name from them.
You can take it to court if you like, but it's not likely to
do you any good unless you can prove that the
registrant had the intent to squat on the name an-d not use it,
hoping that you would u"-*itting to pay
excessive fees to get it back.
Still, the case may cost you more than it's worth.
This is an unresolved battle with more and more companies. Until
laws are passed (not likely) there
will be no way to protect a domain name other than being the first
one to reserve it. you may have a
case if they are harming your business in some way by-the inappropriate
use of that name. But if
they are simply using lor another purpose, you might consider
."tting in"r the trademark instead. ;)
Just kidding' I know this is not something you are likely to consider.
Have you contacted the regis-
trant of www.your-trademark.com? lf you want to knowwho it is,
there's a way to find the registered
owner by going to this address and typing in the domain name.
http://www. networksolutions.com/cgi-bin/whois/whois/
It will return a registrant name, host name and the name
servers.You might consider contacting them
and simply explaining your trademark situation, your desire to own
the name and then simply ask if
they would consider a reasonable solution. eossibty something
like to avoid a court battle and make it worth theiitime to seii "s
rimpie al;;G;-J;n that youd
it to you by offering twice what they
paid for it.
lf they have not spent large sums developing a.branding strategy for
the name, they may be willing
to give it up. lt's only 4 months old at this point it they reierveo it'in February.
ltb even possiole that
they haven't begun to develop their site or their stratbgy yet. You may be
assuming the iorst and be
confronted with a friendly and accomodating person wirring to look fbr
an equitabie solution.
To Be or NotTo Be, The Domain euestion
WebSitel0l Oglol/2000
To Be or Not To Be, That is the Domain euestion
 GLOBALINTERNET /139
adaptation by Mike Banks Valentine
with apologies to Shakespear
To be, or not to be: that is Domain question.
Whether'tis nobler in ihe mind to suffer
The slings and arrows of slow, free servers,
Or to take arms against a sea of wannabees,
And by opposing, end them. To search: to seek;
No more; and, by anonymity to say we end
The heartache of a million useless search results
That eBiz is heir to, 'tis a relevancy
Devoutly to be earn'd. To look; to seek;
To find? pei'chance to link! Ay, there's the URL;
For in search fatigue domain names niay come,
When we've shuffl'd off this long URL,
Must give us pause. There's the address
That takes gigabytes for so long a name.
For who would bear the tilde and subdirectory,
The competitor's URL, the name so catchy
The pangs of taken domains, the listing delay,
The insolence of Yahoo, and the spurns
That patient merit ol unworthy geocities,
When he himself might his IPO make
Without Domain name? Who would AltaVista bear,
To grunt through subdirectories and filenames,
But the dread of something after backslash,
The undiscovered Business from whose URL
No surfer returns, puzzles the will
And make us rather bear those URLs we have
Than buy the others that are already taken?
Thus creativity does make cowards of us all;
And thus rush'd to registration of a name
We worry o'er lowly cost of reserving,
And enterprises of great riches and power
With this regard our clients turn away,
And lose the name of action.com
 140 / ELECTRONIC COMMERCE

WebSitel0l offers Domain Name Registration

at http://website
1 01 .com/domain. html

where you can read an article on choosing

great domain names, check for availibility
and reserve your online business identity!
How to learn the essentials from others lor free
WebSitel 01O2|OA2OO0
I spend the majority of my time reading. I receive about a
hundred e-mails a day, sometimes much more than that. yes,
some of it is spam and junk and unsolicited commercial crap.
But most of it I've asked to be sent to me. I've requested
that wrtiers submit their articles to my weekly newsletter.
They do, and I have a huge file of articles waiting to run
in the WebSitel0l Reading List.
I've subscribed to the Link Exchange Digest, the HTML Writers
Guild business list, the List of Lists newsletter, a dozen
moderated discussion lists, several business related bulletins
a freebies announcement, a search engine news and advice list,
a daily achievement quote, updates f rom all of the paid and
free services I subscribe to and on top if it all I operate
several online businesses, each of which get regular e-mail
correspondence and inquiries from customers.
Why do I submit to this barrage of information raining down
on my overflowing e-mailbox? I came to online marketing and
the internet with less than zero information about the online
world. I knew no HTML. My lnternet Service Provider laughed
at the list of silly questions I had to ask about how the
web worked and what I get lor my monthly service fee.
I began to learn HTML through a free online course called
Volcano Web at http://www. mcli.dist.maricopa.edu/tut/index.html
it's a step by step tutorialon writing HTML, the language of
the web. Upon "graduation" from that course, I took another,
then another and another.
I began subscribing to newsletters,
discussion- and announcement-lists.l read great articles by the
 GLOBAL INTERNET /141
more experienced business people on the web. ljoined some
discussion lists for online business development run by a small
business groups. Then subscribed to multiple services offering
help to "launch" my business with promotion techniques and
marketing "secrets".
Search engines and f ree tutorials were the beginning of WebSite
101, where I list the services I used and the tutorials I took.
I learned what I could and then distilled them into what is now
offered at WebSitel0l as a "Short Course, How to get my business
online!" That course was likely the introduction of a good deal
of the readership of this list to WebSitel0l . I now study the
top web gurus and research and read about !mproving my skills
even further and offer that to this list the way it was first
given to me, free.

TEST YOUR IINOWTEDGE

PART I OUE5TION WITH ANSWERs
Q.l . How do i print legible plain-ascii versions of web pages?
Ans. There are several ways. Most web browsers have a "save as ascii" option; the quality of the result
varies. Lynx, in particular, being a text-based browser, does a credible lob if you select the print option
and choose "print to local file" instead of an actual printer'
Q.2. How can i save an inline image to disk?
Ans. Here are three ways:
1. lf you are using Netscape, just hold down the right mouse button (hold down the single'mouse button
for more than a second if using the Mac version) over the image. A menu will
2. Turn on "load to local disk" in your browser, if it has such an option; then reload images. You'll be
prompted for filenames instead of seeing them on the screen. Be sure to shut it off when you're done
with it.
3. Choose "view source" and browse through the HTML source; find the URL for the inline image of
interest to you; copy and paste it into the "Open URU' window. This should load it into your image
viewer instead, where you can save it and othenryise muck about with it
Q.3. Vthy do some Web pages take so long to download?
Ans. Many factors aflect how fast a Web page travels from its Web site to your computer. Web pages may
load slowly for these reasons:
tr Your modem transmits data slowly.
O Traffic on the lnternet is heavY.
A The page's file is large. lt contains graphic, sound, or video files, for example, in addition to text.
D The server and connecting lines used by your online service, your lnternet service provider, or
the Web site transmit data slowlY-
Q.4. How to decrease the download time?
Ans. To decrease download time, try these pointers:
D Get the latest version of your browser.
o Buy a faster modem that transmits at a rate of at least 28,800 baud.
D Browse during off-Peak hours.
D Turn off sound and images in your browser. Text-only pages load faster.
 1 4U ELECTRONIC COMM ERCE
D lf a page is loading so slowly that you think it
may be stuck, click the stop button on your
browser's toolbar, and trv to load t'he oao" again
Q.5.
in a fe rv minutes.
ing and whether it is good idea to keep
as many as
Ans.

4.6.
Ans. k my favorite and always use it?
nical method for extracting results
he same results from two dilferent
Q'7' ln some search toots, like Altavista, I see options for
searching usenet. what,s that all about?
Ans' some search engines can search not only ihe web, but
also the contents of newsgroups, which
sometimes collectively called Usenet. are

PART II OBJETTIVE TYPE OUESTION5 WITH AN5WERS

A1.
1' Selec
rcP/t '|"iii;ii;!'ffI1:rnet tosether, was created in the tate te60s by
which and for what purptoie?-"-
a' The white House, to be able to locate intetiigenci-cniet quicxty anywhere
in the wortd, in the

erals in higher education.

uslness by way of immediate communication.
rk.
a server computer, you need a computer, an lnternet
connection, and
?. AThe
b.
right crient program for accessing the particurar type
Nintendo system, some wire, and i g-von battery
of server.
c. Guts.
d. Matthew Brcderick.
3' A browser is a c.rient program that disprays the ....... stored
on the rnternet on .........
a. truth machintoshes
b. web pages web seruers
c. examination papers Gmat

5. Which of the foilowing can you do with a WebTV terminal?

a. Browse the web
b. Steam vegetables.
c. Make telephone free
d. Allof above
6' To what web server does the uRL www.nbc.com/today/couric.htiri
point?
a. Couric .corn
b. www, nbc. corn
c. today, show
 GLOBALINTERNET /143
d. http://www.nbc.cmltoday/Couric.htm
7. ln a magazine, you see the URL for the Old Farmels Almanac shown as www.almanac.corn. Which is
the most reliable way to type this URL in a browser's address box?
a. www.almanac,corn
b. http:/www.almanac.corn
c. http://www.alamanca.corn
d. http//www.almanac.corn
8. You've just jumped from a page entitled Jaya, to one called Prem, then to one called Gita, and finally
to Rima. From Rima, how can you get back to Jaya?
a. Enter the URL lor Jaya in the address box.
b. Click Back three times.
c. Find a link on Rima that happens to lead to Jaya, and click it.
d. All of the above.
4. After you've filled in a form, the information it contains is transmitted to the server
a. Automatically
b. As soon as you complete the last entry
c. Within 24 hours
d. Only after you click the submit button
10. True or false; lt's a good idea to change your security settings at random, just to see what happens.
11. A secure site protects you from
a. Sending information to an unscrupulous site
b. Sending information that can be harvested from the lnternet by a third party
c. Buying junk you don't really want
d. All of the above
12. The difference between a bookmark and a favorite is
a. One's a noun; the other's an adjective.
b. A bookmark marks history, while a favorite indicates preference.
c. A bookmark provides an easy way to return to a page in Navigator and a favorite does the same
in lnternet Explorer.
d. A bookmark provides an easy way to return to a page in Navigator.
13. Your history file lists all pages you've visited
a. Within the number of days for which your browser is set up to save history
b. ln your entire lifetime
c. With conviction
d. More than four times
14. Saved web pages always include all ......... that you see online, but may omit
a. Yin Yang
b. text meantng
c. images color
d. text images
A2. Select best possible alternative(s) out of following:
1. Which of the fotlowing is a type of program code that a web site might send to your computer?
a. Computer/r BASIC
b. JavaScript
c. DOS
d. All of the above
2. The Windows or Mac file types registry
a. Lists the file types your computer wants for its wedding
b. Lists all the files installed on your computer
c. Assigns a program to automatically handle each of many dilferent file types
d. Assigns your browser to handle all files
3. True or false: Plug-ins are installed automatically, whenever necessary.
4. To see the multimedia enhancements in a "shocked" web page, you need
 1 44 / ELECTRONIC COMMERCE

a. Nerues of steel
b. Buns of steel
c. The RealAudio plug-in
d. The Shockwave plug-ins
Which of the following is a way to get to a search toot?
a. Enter the search tool's |JRL.
b. Use a link to the tool, found on another tool's page.
c. Click your browsels Search button.
d. All of the above.
You're searching for information about rabbits. which is the best search term?
a. Rabbits
b. Rabbit
c. Rabbit or bunny or hare
d. Rabbit and bunny and hare
7. ln the hit list, the search tool puts the hits it considers best
a. ln a special"premief hit list
b. At the top of the hit tist
c. At every fourth position in the hit list
d. At the bottom of the hit list users because
8. web integration may improve the effiiiency of computer users because
a. They'll be grateful, and therefore motivated.
b. They needn't learn or use different skills for local and online activities.
c. They'll find it easier to email questions to others who can hetp them.
d. Their computers will run faster
L Experts give the Net PC little chance of catching on as a home lntemet terminal because
a. A Net PC costs almost as much as a cheap pC, but can,t do as much.
b. A Net PC's "sealed case" prevents its use as a place to hide jewelry.
c. 'A Net PC" sounds too much like "Annette Peicie," a cheerleader nobody tiked in high school.
d-. Anything collectively supported by Microsoft, lBM, and lntelcan't be good for us.
A3. Choose the correct option
t. The protocol that Web clients and seruers use to communicate with each other is called
(a) HTML (b) HTTP.
(c) URL (d) None of the above.
2. Web documents are stored as text fites with the ertension
(a) .htm.
(b) .htmt.
(c) Both a and b.
(d) None ofthe above.
3. Using Lynx, you can view
(a) Text. (b) Graphics.
(c) Both a and b. (d) None of the above.
4. Which of the follovying is a search engine?
(a) Microsoft,
(b) AltaVista.
(c) Yahoo,
(d) Both b and c.
5. The original developer of the WWW was
(a) Tim Berners-Lee. (b) Marc Andreesen.
(c) Bill Gates, (d) None of the above.
6. The lntemet is also refered to as:
(a) The nVeb."
(b) information superhighway
(c) www
 GLOBALINTERNET /145
(d) Network of Networks
(e) All of above
7. The lnternet is a collection of specialized computers located in Silicon Valley.
(a) True @ False.
8. The act of exploing the Web is known as:
(a) Exploring
(b) Searching
(c) Suding.
(d) Browsing
4. American users can only view documents which were created in the United Stafes.
(a) True
(b) False.
10. Which of the foltowing groups is allowed to put pages on the Web?
(a) Universities
(b) Web Consortiam
(c) Microsoft
(d) Any one
(e) All of the above.
A4. Choose the best possible altemative(s) :
1. The dilference between a bookma* and a favorite is
a. One's a noun; the othe/s an adiective-
b. A bookmark marks history while a favorite indicates preference.
c. A bookmark provides an easy way to retum to a page in Navigator and a favorite does the same
in lnternet ExPlorer.
d. A bookmark provides an easy way to return to a page in lnternet Explorer and a favorite does the
same in Navigator.
2. Your history fite tists all pages you've visited
a. Within the number of days for which your browser is set up to save history
b. ln your entire lifetime
c. With conviction
d. More than four times '
3. saved web pages always include atl ......... that you see online, but may omit
a. Yin Yang
b. brt meaning
c. images color
d. text images
A5. Select the best suitable alternative(s) from lollowing?
l. The Back and Forward buttons are inactive until a link on a web page is pressed'
(a) TRUE
(b) FALSE
2. lf you become lost, the best button to press is:
(a) Stop
(b) Home
(c) Reload
g. The easiest method to pint a web document involves:
(a) Copying the text and pasting it into WordPertect
(b) Saitring the brt and loading the lile intoWordPertect
(c) Pressing the Print button
4. To see an animation a second time, press:
(a) Home
(b) Reload
(c) Open type
S. To see a web page (IJRL) mentioned in the newspaper or an television, press the ..'.. button and
 146 / ELECTRONIC COMMERCE

in the URL.
(a) Back
(b) Home
(c) Stop
(d) Open
6. Text on the web page can be inade to
appear larger by using:
(a) Options-General preferences_Appearance
(b) Options-Networking
(c) Fite-Save As...
(d) Fite-Open
7- web pages risted in the "Go" menu remain in
the rist untir erased by the user.
(a) TRUE
(b) FALSE
8' attempt or downloading of information can be interupted
[!f "";|:r"'"n by pressing:
(b) Home
(c) stop
(d) Forward
9' All information found on the web can be considered
factual and without error.
(a) TRUE
(b) FALSE
10. The act of exploring the Web is known as:
(a) Running
(b) Roaming
(c) Reading
(d) Surfing
(e) Browsing
81. True or false:
1. To use the rnternet Exoto.rgr we^b browse4 you
! Web. must arso use the Active Desktop.
2. The basis for the lnternet is the
3.
4.
5.
toped in 1990 at CERN.
t.
6.
n the Internet.
7.
ontain both words,'Gandhi" and ,'Lincoln,,.
8.
omputer to yours.
9.
orage and retrieval.
10.
approach to offering information on a computer
c1. Fill in the blanks
1. A ..... is a mechanism to control access to and from
Web seruers.
2. ....... uses links , also called hypertinks.
3. A document (or file) accessed by a web browser is
cat*d a ... ...... or web site.
4.
5. web page.
6.
to a Web page.
7.
sses are simply called "addresses", a WWW
address is called a ......
izes, and often rates and reviews Web sites.
tomated search engine.
general information.
ou to search newsgroup.
loaded must be ....... before use on your computer.
 GLOBALINTERNET /147

13. The Wortd Wide Web, commonly referred to as the "" or the WWW'
14. ....... facilities can be accessed through http'
15. ....., a seruer for Unix comPuters.
c2. Fill in the blanks with appropriate word(s)'
(1) ln order to send email to-someone you need to know their""'
2) An address for a webpage is called a ..""
you would use what Boolean term in the
3) To search for a webpagi about the otd movie comedy teams,
examples below:
Laurel ..... HardY
Comedy..... Movies
4) Tofind'webpagesaboutmoneyotherthanlJSCurrency,youcanusewhatterm?
Currency...... USA
D. Explain the following term.
1. Web browser 2. HyPerlink.
3. Search engine. 4. Web seruer
5. Portal 6. Webcrawlers
E. Differenciate between
1. Web browswr and web-seruer 2. Browser and search engine
3. lnternet and web 4. Poratl and search engine
F. Write the full form of the followingt
1. HTTP 2. HTTPD
3. INERNET 4. HTP
5. Wt/W 6. TCP
7. lP 8. URL
9. FTP 10. //s
11. wAls 12. HTML
G. Activities for trial
1.

t enhance or detractfrom your lnternet expenence'

2.

3.
Search button. Virlually all search tools s
you to find pages by browsing through -a
for
any ads orf-ree offe-rs fro t providers and online services (such aYahoo'com)'
4. Start watching
and save the ads if You can'
5. E-mail
Use
you wilt need to set some of the entries in the Options menu'
on.catatgwei/tninting/netscape' html#hetper to set- up
.your
e-.mail'

onfigurid your e-miit, try sending a message to a classmate'

(b) ean use
Yntt can
Crea book containing at '-^^' t,.,^
^, least a+Ataaeac You
two addresses' use mtne
a another staff member' lf youI

(mcin ,.i"j to, one.o! th6m and plerhaps friend,or

]iou
can,t address, add your o*i i^i" you'll need to e-mail
never know when
yourself!
formation; write down the \JRL of the site at which
uiing ii"nn engines can be found at: http://
Lhtml
developed' angiostatin and endostatin'
red the drugs?
1 48 / ELECTRONIC COMMERCE

0 What two companies produce these drugs2

A What is the current price of the companies' stock?
(b) What is the weather forecast for today in Sydney?
(c) When you look at computer ads, the phrase \vith MMX technology" is often displayed with the
description of the processor.
(d) What team won the Stanley Cup in 1988? What team did they play in the final round?
7. Bookmaks
O Create a Beokmark file containing: At least two folders, indicating a subject area of interest to you.
Under each foldef add bookmarks for sites that fall into the subject area. Add a minimum of two sites
for each folder Changa the name of the top level folder to your name.

[NswERs PART r(B) 0BJECTIVE TypE 0UEST|0X5

41.
1. (d) The DoD (Department of Defense) planted the seeds of the lnternet by developing TCP/IP. The
other choices had nothing to do with TCP/IB but I swear they're true otherwise.
2. (a) Each type of server is built to be accessed by a particular type of client program.
3. (b) Browsers are lor getting web pages from web servers.
4. (d) All this challenges or defeats older computers and operating systems.
5. (a) I know (a) is true. lf you've successfully tried (b) or (c), I apologize for the error
6. (b) Just the first part ol the URLup to the first single slashshows the lnternet domain name of the web
server. The rest ol the URL shows the directory path and filename of a web page file on that server.
7. (d) Choice (a) could work, but only in browsers that permit you to otnit the http: ll prelix. Choice (b)
omits one of the slashes from the prefix, and choice (c) misspells the URL.
8. (d) Choices (a), (b), and (c) all work, although (b) would be easiest.
9. (d) The server sees nothing you type in a lorm until you click the submit button, which might be labeled
Submit, Send, or some other name that implies submission.
10. False. Leave your security settings alone unless you have a good reason to change them.
1 1. (b) Secure sites are a hedge against harvesting. You have to be careful about (a) and (c) yourself.
't2. (d) (13)(a) 14. (d)
A2
1. (b) Of the choices, onlyJavaScript is a likely contender. Of course, anything's possible.
2. (c) The file types registry tells your computer (and maybe your browser) which program'to open to
handle each type of file.
3. False. Often, you must deliberately install a plug-in. Scripts, however, do their thing automatically.
4. (d) Only (d) gets the job done.
5. (c)6. (c) Only (c) gets youall pages that use any of the three terms for rabbit. 7. (b) The best hits go first.
8. (b) Choices (a), (c), and (d) are silly.
9. (a) The main reason is (a), but I have a feeling (d) isn't that far wrong.
A3 1.(b),2.(b),3.(a),4.(d),5.(a) 6. (e)2. (l),8. (a),4. (b), 10. (e)
A4. 1. (c) 2. (a), 3. (d)
A5. 1a 2b 3c 4b 5d 6a 7b 8c 9b 10d
B. l.FTheActiveDeshopisoptional.2.FS.F4.T5.T6.T 7.F 8.F4.F10.7
Cl. 1. Firewall 2. Hypertext
3. web page 4. Java
5. Java 6. Netscape Navigator
7. URL 8. search Engine
9. Web crawler 10. Directory
11. Dejanews 12. compressed, unzipped
13. Web '14. internet
15. Apache
C2. 1. address 2. URL
3. or, and 4. not
 C/,rpf* 5
GEIVERATIIYG
E-COMMERCE

5.1 Commerce
Commerce in a nutcell defined as transport of commodities from place to place for exchange purposes.
The British economist Adam Smith wrote in The Wealth of Nations (17761that'the propensity to
truck, barter, and exchange one thing for anothe/'is an intrinsic characteristic of human nature.
Smith also observed that the expansion of commerce is a critical component of the process of
modernization. tn modern society, production is organized to take advantage of specialization and
division of labor. Without commerce it would be impossible to organize production in this manner.
In ancient times, transporting commodities over any significant distance was an expensive and risky
enterprise.Thus, commerce was restricted mainly to local markets, and the most commonly traded
articles were foodstutfs and clothing. Most people spent,the bulk of their resources on food, and
what they neither grew nor gathered themselves they obtained through trade.The same was true of
clothing: Garments were either produced and handed down within the family or acquired through
trade. ln addition to food, clothing, and shelter, the rich devoted their income to conspipuous attire,
jewelry and works ol art. As a result, an important trade in luxury items developed.

5.2 Commerce in History

After a decline following the breakup of the Roman Empire, European commerce expanded gradually
during the Middle Ages, especially during the 12th and 13th centuries. Long-distance trade became
safer once merchants began to form associations for the protection of travelers who journeyed
abroad.The main long-distance trade routes were from the Baltic and the eastern Mediterranean to
central and northern Eu-rope. From the forests of the Baltic came raw materials: timber, tar, furs, and
skins. Frgm the East came luxury goods: spices, jewelry, and textiles. ln exchange for these goods,
wqgtern Europe exported raw materials and processed goods. The English sold woolen garments,
the Dutch offered salted herring, Spain produced wool, and France exported salt;southern Europe
was also rich in wine,fruit, and oil.The ltalian and German cities straddling these routes promoted
and financed the trade. Nonetheless, throughout the Middle Ages, commerce between Europe and
Asia was limited, because overland transport was expensive and because Europe possessed little
of value for export to the East.

5.3 The Early )'lodern Period

The development of oceangoing warships and efficient merchant carriers in the 15th and 16th centuries
led to a rapid expansion of commerce. As the cost of transporting bulky cargoes over long distances
 150 / ELECTRONIC COMMERCE

fell, grain was imported on a large scale from the Baltic to the Netherlands and other parts
of Europe.
New ocean routes between Europe and the East allowed imports from Asia at lower prices and in
greater volume than had been possible by overland caravan. The discovery of the Americas
created
trade in such new commodities as tobacco and logwood.
Spanish exploitation of the rich gold and silver deposits in Mexico and Peru transformed the character
of international commerce. Europe finally possessed a commodity-precious metal-for which ample
demand existed in the Far East. ln return for AsiAn imports, Europe exchanged silver coin minted in
Mexico, Spain, ltaly, and Holland. Using technology and skills developed in tiansoceanic navigation,
the Europeans captured the Asian shipping trade. European vessels transported Japanese copperto
China and lndia, lndian cotton textiles to southern Asia, and Persian carpets to lndia.Trade in certain
staple commodities grew with incredible speed. lmports of tobacco into England from Virginia and
Maryland, for example, increased more than a thousandfold in the 17th century.
As long-distance trade continued to grow, new forms of commercialorganizations appeared. At first,
informal associations gave way to legal partnership. ln Holland, for example, it was not uncommon
after 1500 that shareholders, rather than captains, be the proprietors of ships. Shareholding broke
down the social barriers among different classes of merchants and enabled individuals to divide their
goods among ships destined for different ports. No longer was international trade limited to those
who could afford to travel. After the 1 6th century the chartered trading company replaced the temporary
partnership as the customary way for merchants to organize their affairs. These great companies,
created by the state but privately owned and managed, held national monopoliei over trade with
certain regions.

5.4 The Effects of lndustrialization on Commerce

By 1750 the spice trade had been far surpassed in importance by trade in primary products. ln the
years thatfollowed, commerce was transformed again, this time bythe lndustrial Revolution. Because
the first lndustrial Revolution occurred in Europe, that continent was at the center of the global
commercial network for much of the 1 9th century. European economies depended on foreign mirkets
to supply raw materials and to demand manufactured goods. The growth of industrial production,
therefore, was accompanied by a rapid expansion of commerce. Between 1750 and 1914, world
trade increased in value fivefold. During the 19th century alone, world shipping tonnage grew f rom 4
million to roughly 30 million tons. European merchants carried the bulk of this trade.
lndustrialgrowth affected commerce in numerous ways. lnitially, the increased production stimulated
trade in raw materials. The mechanization of European textile production was responsible for a
dramatic rise in U.S. exports of raw cotton.After 1850, trade in grain, meat, and woolalso expanded.
Europe became a steady importer of wheat from North America, Australia, Argentina, and lndia,
paying for its imports with the products of industry.
Another important aspect of industrial growth was the revolution in land transportation. The
development of the steam engine and the construction of railroad lines promoted commerce between
coast and interior on virtually every continent.The railroad was especially important in North America,
East Asia, and Latin America.
By the end of the 19th cpntury, primary producing regions were no longerthe most important outlets
for the products of European and North American industry. lncreasingly, industrial nations became
each other's principal customers, and commerce between the Americas and the European countries
took on a multilateral character. The opposite was true for the primary producing regions of Af rica,
Asia, and Latin America: Many became part of European colonial empires, and nearly all came to
depend heavily on a few foreign markets.
 GENERATING E.COMMERCE / 151

5.5 The Period of the Wodd Wars

Both internal and externalcommerce suffered setbacks during World War l.Trade taxes and quantitative
restrictions were widely imposed, and it took a series of international conferences during the following
decade to dismantle them. The dismantling of controls, however, was not always accompanied by
the reduction of trade barriers. The United States and many other countries adopted new customs
duties in the 1920s.
With the onset of the Great Depression in 1929, commerce was disrupted once more. National
commercial policies remained basically unchanged through the end of 1929, but numerous import
controls were imposed in 1930 and the following years. Several relatively self-contained commercial
areas then came into being: the sterling area, which traded primarily with Britain; the gold bloc,
centered on France; and the German and American trading areas. Within this framework, domestic
and foreign commerce recovered slowly but steadily during the 1930s, only to be interrupted again by
World War ll.

5.5 The Later 20th Century

The reduction of trade barriers and the continued expansion of international commerce are two of the
notable achievements of the postwar era. Tariff reductions have been accomplished through the
General Agreement on Tariffs and Trade, or GATT and by the creation of customs unions, such as
the European Union. Although world exports more than doubled in volume and increased in value by
a factor of eight between 1954 and 1974, not all countries shared equally in this growth. ln the 1950s
exports from the industrialized nations of North America and Western Europe expanded rapidly,
while exports from the developing countries fell behind. ln contrast, after 1965 the exports of the
developing nations grew most rapidly, in part because of the rising value of oil exports f rom petroleum-
producing countries.The share of world trade held by Japan and the European Union rose, but that of
the former Soviet republics and Eastern Europe declined. For the world as a whole, the value of
international commerce (exports plus imports) rose f rom $643 billion in 1970 to more than $6.7
trillion in 199O-despite the efforts of some countries to impose import quotas and negotiate voluntary
export restraints. The outlook for commerce across national borders was improved in the early 1990s
as member nations of GATT signed a major new treaty that struck down many barriers to free trade
and established the World Trade Organization (WTO). ln addition, regionaltreaties such as the North
American FreeTrade Agreement (NAFTA) went into effect.
Sometimes we use something every day but never stop to consider how it works. Take your
toaster_you know it glows when you push down that lever, but you're not sure what's really going on
(a friend's kid thought there were tiny people holding matches inside). Of course, it doesn't much
matter since the chances of you having to build your own toaster are slim (safety hint for those
suddenly interested in how their toaster works_don't stick anything except bread into your toaster
unless you unplug it first).
But you are going to be building your own Web site, so you need to take a few moments to stop and
consider how effective sites are designed. The basics are simple and don't require you to unplug
anything to avoid electrical shock (though, just to be on the safe side, avoid using your computer in
the bathtub or shower).

5.7 Free Trade

The term FreeTrade implies interchange of commodities across politicalfrontiers without restrictions
such as tariffs, quotas, or foreign exchange controls.This economic policy contrasts with protectionist
policies that use such restrictions to protect or stimulate domestic industries.
 152 / ELECTRONIC COMMERCE

5.7.1 Early Trade Doctrine

Foreign trade doctrines began to develop during onomic policy,
known as mercantilism, dominated Western Eu Supporters of
this policy worked to promole national unity and ey considered
wealth a necessary condition of power, and th and silver specie, or coins, a
necessary condition of wealth. Countries without cquired specie by maintaining
a surplus of exports over imports through strict oi foreign trade.'
A reaction against such control occurred in France in the 18th century. This
led to the formulation of
the first theory of free trade by a group of economic philosophers known as
the physiocrats, who
were followers o iocrats maintained that the iree movement
of goods was in berty. Although their ideas had litile effect
in France, they i ith, whose free trade theories contributed
to the later development of trade policy in Britain.
Smith decisively refuted the protectionist conclusions of mercantilist thought. He pointed
out that
wealth consisted not in specie itself but in the materialthat specie could p-urchase.
Governmental
regulation of trade actually reduced the wealth of nations, because it prevenied
them from purchasing
the maximum amount of commodities at the lowest possible price. With f ree trade,
each nation cbuld
increase its wealth by exporting the goods it produced most cheaply and importing goods
that were
produced cheaper elsewhere.
According to Smith, each country would speciali n which it
had an absolute advantage-that is, it could prod ts trading
partners. Another British economist, David Rica h centur!
to encompass the more general case of comparal e nations
lack an absolute advantage in the production of any commodity. However, even
these nations could

are produced between the trading countries, and t

of comparative advantage forms the theoretical b

free trade. The British philosopher

depend on the strength of reciprocal
e exports of a country relative to its
de.The gain would be reflected in an improvement
in the international terms of trade for the country, by the ratio of its export prices to its
import prices. "s "rpr"is"d
5.7.2 llodcrn Trade Theory
co
The.classicaltheory of trade developed by smith, Ricardo, and Mill was
he
th
analysis of the gains from trade. Modern trade theory by contrast, takes
advantage for granted. lt is mainly-concerned uiin tne analysis of the
ve
ith
accounting for differences in comparative advantage.
Classicaltheorists assumed that differences in comparative advantage resulted
from differences in
the productivity of resources, reflecting the unequal distribution ol technologies
and labor skills
among nations. A more complete explanation was offered by several2Oth-centiry
economists, who
noted that differences in the prices of final goods tend to reflect differences
in the prices of resources
used to produce the goods, and that these differences reflect differences in
the availability of the
 GENERATING E.COMMERCE / 153

resources. Countries specialize in the production and export of goods requiring relatively large amounts
of those resources that they possess in abundance, and they import goods requiring relatively large
amounts of resources that are scarce within their borders.

5.7.3 Arguments for Protection

Despite the conclusions of classicaltheory, few countries have ever actually adopted a policy of free
trade.The majorexception was Britain, which,fromthe 1840s until the 1930s, levied no import
duties of any kind. The historical prevalence of protectionist policies reflects in part the strength of
industrial vested interests fearful of foreign competition, and in part the strength of various theoretical
arguments for protection. Such arguments can be classified in three groups: those intended to
influence the composition of production; those intended to influence the level of employment; and
those intended to influence the distribution of income. Under appropriate circumstances all three
groups of arguments have theoretical validity as well as limitations'
One of the oldest arguments for protection is the so-called infant-industry argument. According to
this theory, when foreign competition is reduced or eliminated by import barriers, domestic industries
can develop rapidly. After their development is complete, they should theoretically be able to hold
their own in competition with industries of other nations, and protection should no longer be required.
ln practice, however, protection frequently cannot be removed, because the domestic industries
never develop sufficient competitive strength. The limitation of the infant-industry argument is its
inability to identify those industries that are capable of growing to genuine maturity.
The national defense argument for protection seeks to avoid dependence on foreign sources for
supplies of essential materials orfinished products that might be denied in time of war.The limitation
of this argument is that identification of those industries indispensable for national defense is
difficult.
A third instance in which protection is advocated is to counter dumping f rom abroad. Dumping occurs
when products are made available as imports at prices lower than the prices prevailing in the exporting
country. Protection may be justified in these circumstances, but only if the clear intention of foreign
suppliers is to drive domestic suppliers out of business.
During periods of high unemployment, protection is often urged as a means of increasing employment.
With imports reduced, demand for domestic substitutes will be stimulated, expanding production at
home. Economists call this a "beggar-my-neighbo/' policy: The improvement of employment at home
is achieved entirely at the expense of employment elsewhere. The limitation of such a practice is
that it invites retaliation from other nations sullering from similar problems of high unemployment.
Protection can be used to redistribute income either within nations or between nations. For example,
if a nation finds that the demand for its exports is relatively strong, it can gain income at the expense.
of other countries by imposing tariffs or other import barriers. Foreigners willthen find it more difficult
to earn the income to pay for the exports they desire. Consequently, they will be forced to reduce
their prices, thus improving the terms of trade for the protectionist nation. Like the employment
argument, this method invites retaliation from abroad.

5.lA RecentDcvelopments
Although most countries officially favor freer trade and deny protectionhm, the achievement of this goal
is somewhat ditficult.When economies are booming and jobs seem secure, most peopletend to support
free trade. When recessions occur, however, many nations become more protectionist because of national
interest and pressure from interest groups that are adversely affected by prolonged recessions.
 154 / ELECTRONIC COMMERCE

SinceWorldWarllendedin1945theleadingtradingnationsn"u"g
to promote f reer trade and remove protectioi
oarri"i"- rn i #;;" (ranarar a a,^^-^^e onI Tariffs
tan[s ano
and
hat worked to
y 23 nations,
thousands of
I 1995, when the activities of
ternational organizatiOn that

5.8 Foreign Trade

Foreign Trade is defined as the exchange of goods
and services between nations. Goods can be
defined as finished products, as intermediate goods
used in producing cther goods, or as agricultural
products and foodstuffs. lnternational tradelnables
n"fron to specialize in those goods it can
also enables" a country to consume more than it would
produce most cheap.ly and efficiently.Trade
able to produce if it depended only on its own. resources. be
Finally, trade enlarges the potential market
for the goods of a particular economy. Trade has always
u""n irr" major force behind the economic
relations among nations.

5.8.1 Emergence of }lodern Foreign Trade

Although foreign trade was^an important part of ancient
and medieval economies, it acquired new
significance afterabout'l5oo. As empires and colonies
were established by European countries,
trade became an arm of governmentai policy.The wealth
of a country was measured in terms of the
goods it possessed, particularly gold and precious metals. The objective of an
empire was to acquire
as much wealth as possible in return lor as little expense
as possible. This form of international
trade, called mercantilism, was conrmonplace in tne i oth
ano t ztn centuries.
lnternational trade begal to assume its present form
with the establishment of nation-states in the
17th and 18th centuries. Heads of state discovered that by promoting foreign
trade they could mutualry
increase the wealth, and thus the power, of their nationr.
or.irinj tnis perioo new theories.of economics,
in particular of international trade, also emerged.

5.8.2 Advantages of Trade

ln 1776 the scottish economist Adam smith, in The
wealth of Nations, proposed that specialization
in production leads to increased output. smith believed
that in order to meet a constanily growing
demand for goods, a country's I efficienily. According to Smith,s
theory, a country that trades int
it has an absoruie advantage-t
partners' The country can then export a portion
_r:__ _r J,'JXt^::liffi:?*X.;Ji,:ffi
of those goods and, in turn, import goods that its
trading partners produce more cheaply.'smith's work
is tie f,cundation of the classical school of
economic thought.
Half a century later, the English economist David
Ricardo modified this theory of internationaltrade.
Ricardo's theory, which is accepted by most
.still modern economists, stresses the principle of
comp.arative advantage. Foilowing this principre, a country."n .tirr
even though its trading partners can produce ihose goods
cornes if each trading partner has a product that
roi. J"
wiribring ["tt", iri.
at home' lf each country specializ ls in producing
the gooi." in *niJn it has a comparative advantage,
more goods are produced, and the wealth of boin
thJuuving selling nations increases.
"nJ1n.
 GENERATING E.COMMERCE / 155
Besides this fundamental advantage, further economic benefits result when countries trade with one
another. lnternational trade leads to more efficient and increased world production, thus allowing
countries (and individuals) to consume a larger and more diverse bundle of goods. A nation possessing
limited natural resources is able to produce and consume more than it othenruise could. As noted
earlier, the establishment of internationaltrad'e expands the number of potential markets in which a
country can sell its goods. The increased international demand for goods translates into greater
production and more extensive use of raw materials and labor, which in turn leads to growth in
domestic employment. Competition from internationaltrade can also force domestic firms to beconre
more efficient through modernization and innovatron.
Within each economy, the importance of foreign trade varies. Some nations export only to expand
their domestic market or to aid economically depressed sectors within the home economy. Other
nations depend on trade for a large part o{ their national income and to supply goods for domestic
consumption. ln recent years foreign trade has also been viewed as a means to promote growth
within a nation's economy. Developing countries and internationalorganizations have increasingly
emphasized such trade.

5.8.3 GovernmentRestrictions
Because foreign trade is such an integral pari of a nation's economy, governmental restrictions are
sometimes necessary to protect what are regarded as national inlerests. Government action may
occur in response to the trade policies of other countries, or it may be resorted to in order to protect
specific industries. Since the beginnings of international trade, nations have striven to achieve and
maintain a favorable balance of trade-that is, to export more than they import.
ln a money economy, goods are not merely bartered for other goods. lnstead, products are bought
and sold in the international market with national currencies. ln an effort to improve its balance of
international payments (that is, to increase reseryes of its own currency and reduce the amount held
by foreigners), a country may attempt to limit imports. Such a policy aims to controlthe amount of
currency that leaves the country.
Almport Quotas One method of limiting imports is simply to close the ports of eniry into a country.
More commonly, maximum allowable import quantities may be set for specific products. Such quantity
restrictions are known as quotas.These may also be used to limit the amount of foreign or domestic
currency that is permitted to cross national borders. Quotas are imposed as the quickest means to
stop or even reverse a negative trend in a country's balance of payments. They are also used as the
most effective means of protecting domestic industry from foreign competition.

5.8-4 Tariffs
Another common way of restricting imports is by imposing tariffs, or taxes on imported goods. A
tariff, paid by the buyer ol the imported product, makes the price higher for that item in the country
that imported it. The higher price reduces consumer demand and thus effectiveiy restricts the import.
The taxes collected on the imported goods also increase revenues for the nation's government.
Furthermore, tariffs serve as a subsidy to domestic producers of the items taxed because the higher
price that results from a tariff encourages the competing domestic industry to expand production.

5.8.5 Nontariff Barriers to Trade

ln recent years the use of nontariff barriers to trade has increasedr Although these barriers are not
necessarily administered by a government with the intention of regulating trade, they nevertheless
have that result. Such nontariff barriers include government health and safety regulations, business
codes of conduct, and domestic tax policies. Direct government support of various domestic industries
 156 / ELECTRONIC COMMERCE

is also viewed as a nontariff barrier to trade,

unfair advantage among trading nations.
because such support puts the aided inort[n
5.8.5 20th Century Trends

5.8.7 TradeNegotiations

rs to free trade. GATT members held a number of

specially organized rounds of negotiations t
world trade. After the round of negotiations
signed an agreement to establish the Wor
activities of GATT in 1995. As of 1996 almost ail
agreement had transferred membership to the{\f
and WTO can be seen at section? anO- .... of this chapter.

5.8.8 Trading Communities and Customs

everything produced and consumed in the three countries.

was succeeded in 1993 by the European Union. Thr

Council for Mutual Economic Assistance (COME(
1991 as a consequence of the political and economic changes
in the Communist world.

5.9 U.5. Trade

ln 1992, U.S. exports totaled about $447 billion,
transport equipment constituted 4g.1 percent
constituted 36.9 percent. Major exports also incl
nited States, 10.1
ent, machinery a
essentialmaterial tin, graphite, sugar, coffee,
Unit
tea, and energy resources. ln the 1960s, the
an erosion ol its dominant
 GENERATING E.COMMERCE / 1 57
position in world trade, and in most of the years after 1970, it reported a negative trade balance (more
imports than exports). The U.S. share of world manufactured exports declined from 25.3 percent in
1960 to less than 15 percent in 1992. The American trade deficit with Japan was perceived to be a
growing problem.
ln 1990 world trade (exports and imports) was approximately $6.76 trillion, roughly double the f igure
for 1980. Driven by inflation and higher prices for commodities such as oil, the value of world trade in
U.S. dollars increased nearly tenfold between 1965 and 1985.
ln the 2Oth century trade has increased, becoming a more dominant segment of the world's economy.
It is expected that the trend toward increasing interdependency among national economies will continue
into the future.

5.10 Business
Business is defined as an organized approach to providing customers with the goods and services
they want.The word business also refers to an organization that provides these goods and services.
Moit businesses seek to make a profit-that is, they aim to achieve revenues that exceed the costs
of operating the business. Prominent examples ol for-profit businesses include Mitsubishi Group,
General Motors Corporation. and Royal Dutch/Shell Group. However, some businesses only seek to
earn enough to covertheir operating costs. Commonly called nonprofits, these businesses are primarily
nongouern.ental service providers. Examples of nonprofit businesses include such organizations
as social service agencies, foundations, advocacy groups, and many hospitals.
Business plays a vital role in the life and culture of countries with industrial and postindustrial (service-
and information-based) free-market economies such as in the United States. ln free-market systems'
prices and wages are primarily determined by competition, not by governmentg. ln the United States,
ior example, many people buy and sell goods and services as their primary occupations. ln 1996
American companies sold in excess of $7.5 trillion worth of goods and services annually' Businesses
provide just about anything consumers want or need, including basic necessities such as food and
housing, luxuries suc'h as whirlpool baths and wide-screen televisions, and even personal services
such as caring for children and linding companionship.

5.10.1 Types of Businesses

There are many types of businesses in a free-market economy. The three most common are :

(1) Manufacturing firms

(2) Merchandisers
(3) Service enterprises

5.1I I'lanufacturing
Firms Manufacturing firms produce a wide range of products. Large manufacturers include producers
of airplanes, cars, computers, and furniture. Many manufacturing firms construct only
parts rather
than complete, finished products. These suppliers are usually smaller manufactu-ring firms' which
The larger lirms then assdmble final products for
supply parts and components to larger firms.
ma*"t io For example, suppliers provide many of the components in personal computers,
and home appliances to large firms that create the finished or end products. These
"onsumers.
automobiles,
larger so responsible lor marketing and distributing the products.
The a in being able to efficiently and inexpensively control any
parts of a production process are known as economies of scale. But small manufacturing firms may
common in
work bestiqr producing certain types of finished products. Smaller end-product firms are
1 58 / ELECTRONIC COMMERCE

the food industry and among artisan trades such as custom cabinetry.

5.lZ Merchandisers
Merchandisers are businesses that help move goods through a channel of distribution-that is, the
route goods take in reaching the consumer. Merchandisers may be involved in wholesaling or retailing,
or sometimes both.
A wholesaler is a merchandiser who purchases goods and then sells them to buyers, typically
retailers, for the purpose of resale. A retailer is a merchandiser who sells goods to consumers. A
wholesaler often purchases products in large quantities and then sells smaller quantities of each
product to retailers who are unable to either buy or stock large amounts of the product. Wholesalers
operate somewhat like large, end-product manufacturing firms, benefiting from economies of scale.
For example, a wholesaler might purchase 5000 pairs of work gloves and then sell 100 pairs to 50
different retailers. Some large American discount chains, such as Kmart Corporation and Wal-Mart
Stores, lnc. serve as their own merchandisers. These companies go directly to factories and other
manufacturing outlets, buy in large amounts, and then warehouse and ship the goods to their stores.
The division between retailing and wholesaling is now being blurred by new technologies that allow
retailing to become an economy of scale. Telephone and computer communications allow retail
salespeople to serve far greater numbers of customers in a given span of time than is possible in
face-to-face interactions. Computer interfaces, because they do not require any physical
communication between salespeople and customers, can allow close to an unlimited capacity for
sales interactions. For example, a typical transaction to purchase a pair of shoes at a shoe store
may take a half-hour from browsing, to fitting, to the transaction with a cashier. But a customer can
purchase a pair of shoes through a computer intedace with a retailer in a matter of seconds.

5.t3 Service Enterprises

Service enterprises include many kinds of familiar businesses. Examples include dry cleaners, shoe
repair stores, barber shops, restaurants, ski resorts, hospitals, and hotels. ln many cases service
enterprises are moderately small because they do not have mechanized services and limit service to
only as many individuals as they can accommodate at one time. For example, a waiter niay be able
to provide good service to four tables at once, but with five or more tables, cuslomer service will
suffer.
ln recent years the number of service enterprises in wealthier free-market economies has grown
rapidly, and spending on services now accounts for a significant percentage of all spending. For
example, private services accounted for about 20 percent of U.S. spending in 1994. Wealthier nations
have developed postindustrial economies, where entertainment and recreation businesses have
replaced rnost raw material extraction such as the mrning of mrneral ores, and some manufacturing
industries. Many of these industries have moved to developing nations, especially with the rise of
large multinationalcorporations. As postindustrialeconomies have accumulated wealth, they have
come to support systems of leisure, in which people are willing to pay others to do things for them.
ln the United States, vast numbers of people work rigid schedules for long hours in indoor offices,
stores, and factories. Many employers pay high enough wages so that employees can afford to
balance their work schedules with purchased recreation. People in the United States, for example,
support thriving travel, theme park, resort, and recreational sport businesses.

5.15.1 Forms of Business 0wnership

There are a number of different forms of business ownership. These include
(1) Soleproprietorships,
 GENERATING E.COMMERCE / 1 59
(2) Partnerships,
(3) Corporations,
(4) Joint ventures, and
(5) Syndicates.
(6) Merchants and Retailers
5.15.2 Sole Proprietorship
The most common form of ownership is a sole proprietorshipthat is, a business owned by one
individual. Today there are more than 16 million sole proprietorships in the United States. These
businesses have the advantage of being easy to both set up and dissolve because few laws exist to
regulate them. Proprietors, as owners, also maintain direct control of their businesses and own all
their profits. On the other hand, owners of proprietorships are personally responsible for all business
debts and, constrained by the limits of their personal financial resources, they may find it difficult to
expand or increase their profits. For those reasons, sole proprietorships tend to be small, primarily
service and retail businesses.

5.15.5 Partnership
A partnership is an association of two oi tor" people who operate a business as co-owners.There
are different types of partners. A general partner is active in the operation of a business and is liable
for all of its debts. ln small businesses with only two or three owners, all will be general partners. A
limited partner, by contrast, invests in a business but is not involved in its daily operations.
Partnerships, like sole proprietorships, are relatively easy to establish. Furthermore, partners can
poolfinancial resources to fund expansion, and can divide their duties and responsibilities according
to personal expertise and abilities. For example, one partner may be very good at selling, while
another has a knack for maintaining good financial records. As with sole proprietorships, however,
partnerships may entail substantial financial risks, as all of the general partners are liable for the
debts ol the business. And unlike proprietorships, disagreements among partners can harm partnership
businesses.

5.13.4 Corporation
A corporation is a legal entity that exists as distinct f rom the individuals who control and invest in it.
As a result, a corporation can continue indefinitely through complete changes of ownership, leadership,
and staffing. Current owners can sell their holdings to other individuals or, if they die, have their
assets transferred to heirs. This is possible because a corporation creates shares of stock that are
sold to investors. One strength of the corporate business structure is that stockholders have limited
liability, as opposed to the unlimited liability of general partners, so they cannot lose more than their
initial investment. lnvestors may also easily buy and sell stocks of public corporations through stock
exchanges. By offering stock publicly, a corporation enables anyone with some money to buy the
stock and become a part-owner of the company. As a result, corporations can more easily raise
capital for business expansion than can sole proprietorships and most partnerships.
lnvestors control a corporation through the election of a managing body, known as a board of directors.
ln a large corporation, investors collectively decide who will oversee the operation of the enterprise.
ln turn, the board chooses a president, who decides on the key company personnel and helps
formu late company strategy.
Many corporations are highly successful business organizations, with profits far exceeding those of
many sole proprietorships and partnerships. However, they traditionally have higher tax burdens than
other kinds of businesses. Also, the fees involved in creating and organizing a corporation can be expensive.
 160 / ELECTRONIC COMMERCE

5.15.5 Joint Ventures and Syndicates

ln joint ventures and syndicates, individuals or businesses cooperate
to create a single product or
service package' A joint venture is a partnership agreement in which two
or more individual- or
gether to carry out a .S._based
andToyota Motor Co alled New
lnc., created for the
5.15.5 Syndicates
A syndicate is an association of individuals or corporations formed to conduct
a specific financial
transaction such as buying a business. Quite often syndicates are created forthe purpose
of buying
sports franchises. For example, the Miami Heat baslietballteam and the Newyorkyankees
baseball
team are each owned by syndicates of individuals. Each member of these syndicates
is also involved
in the operation of other businesses.

5.13.7 Xercantilism
Mercantilism is an economic policy prevailing in Europe during the 16th, 17th, and
lgth centuries,
under which governmental control was exercised over industry and trade in accordance
with the
theory that national strength is increased by a preponderance oi exports over imports.
Mercantilism
was characterized not so much by a consistent or formal doctrine as by a set of generally
held
beliefs. These beliefs included the ideas that exports to foreign countries are preferabt-e
Ootn to trade
within a country and to imports; that the wealth of a nation depends primarily on
the possession of
gold and silver; and that governmental interference in the national economy'is justified
if it tends to
implement the attainment of these objectives. The mercantilist approach ln economic poticy
first
developed during the growth of national states; efforts were directed toward the elimination of the
internal trade barriers that characterized the Middle Ages, when a cargo of commodities might
be
subject to a toll or tariff at every city and river crossing. lndustries were encouraged and assisted
in
their growth because they provided a source of tixes to support the large armies and other
appurtenances of national government. Exploitation of colonies was considered a legitimate method
of providing the parent countries with precious metals and with the raw materials Jn'which export
industries depended.
Mercantilism, by its very success in stimulating industry and developing colonial areas, soon gave
rise to powefful antimercantilist pressures. The use of colonies as supply depots for the home
economies, and the exclusion of colonies from trade with other nations proouced such reactions as
the American Revolution, in which the colonists asserted their desire for freedom to seek economic
advantage wherever it could be found. At the same time, European industries, which had developed
under the mercantile system, became strong enough to operate both without mercantilist protection
and in spite of mercantilist limitations. Accordingly, a philosophy of free trade began to take root.
Economists asserted that government regulation is justified onlyto the extent nece.sary to ensure
free markets, because the national advantage represents the,sum total of individual advantages, and
national well-being is best served by allowing all individuals complete freedom to pursue their economic
interests' This viewpoint received its most important expression in The Wealth of Nations (1776) by
the British economist Adam Smith.
The free-trade system, which prevailed during the 19th century, began to be curtailed sharply at the
beginning of the 20th century in what has been called a revival of elements of mercantilist philosophy,
or neomercantilism. High protective tariffs were reintroduced, and for political and strategic reasoni,
great emphasis was put on national seltsufficiency as opposed to national interdependence and a
free flow of trade.
 GENERATING E.COMMERCE / 161
5.15.8 Retailing
Retailingis a business activity of selling goods and services directly to consumers. lnstead of selling
products for resale, a retailer sells goods or services to individuals making purchases forthemselves
or their families. Some retailing businesses sell a combination of goods and services. For example,
an automobile dealership that sells automobiles (goods) may also provide automobile repairs (services).
Retailers play an important role in getting products from producers to consumers. Retailers help
direct the physical flow of goods and seruices from places that produce goods to places where goods
are used. Since the retailer has direct contact with the users of goods and services, the retailer can
oiscover and attempt to meet the needs and preferences of consumers.

5.t4 Retailing Strategy

To be successful, a retailer must distinguish itself from other retailers and develop a strategy for
satisfying the needs and preferences of a specific consumer group. This strategy, called a retail mix,
involves caref ul consideration of
(1) the productto sell,
(2) the quantity at which to make the product available,
(3) the location at which to sellthe product,
(4) the time to make the product available,
(5) the pricing of the product, and
(6) the appeal that can be generated to attract the consumer's interest.
(1) The Product
Retailers strive to offer products that appeal to the tastes of the consurner, are of good quality, and
function properly. Sometimes the product must also provide psychological and emotional benefits,
such as prestige or convenience. For example, an expensive watch with a well-known, visible brand
name may give its owner a sense of prestige.
(21 Quantity
Unlike wholesalers, who sell goods in quantities that often are too large to be useful for individuals or
families, retailers sell products in small quaniities that are more convenient for consumers. For
example, wholesalers may selljeans to retail stores in lots (units) of a dozen parrs each. Retailers
then sell consumers jeans by the individual pair.
(3) Location
A retailer's location must be convenient. ln locating retail stores, retailers consider the market or
town in which they want to establish themselves, the part of town to be in, and the actual site of their
store. ln some cases, no store is involved because the right location for shopping for a product is the
consumer's home or place of business. These retailers without stores. known as nonstore retailers,
act as direct marketers by contacting customers directly through mail. the lnternet, television,
telephone, or other means.
(4) Timing
Retailers must make their products availabie at times when consumers are willing and able to buy
'them. Retailers identify consumer buying patterns and adjust such things as store hours, inventory
levels, and promotional programs to accommodate consumers. Retailers also rdentify specialtimes
that generate opportunities to sell merchandise, such as holidays, changing seasons, and special
occasions, such as weddings and school graduations.
 1 62 / ELECTRONIC COMMERCE

(5) Pricing
Fletailers use dilferent pricing strategies to attract different consumers.
For example, some stores
use low or discount prices to attract economy-minded consumers, while
some stores set higher
prices to convey an upscale image.
(6) Appeal
Retailers work hard at creating an image of their store or product that customers
find appealing.
Retailers use such promotional techniques as advertising and public relations
to create awareness
and build interest in their products. These techniques also attract customers
to the retailer,s store,
provide valuable information about the retailer, and persuade customers
to buy.
5.15 fiinds of Retailers
There are many kinds of retailers and they can be categorized according to their
store format. Each
format has different management and selling techniquel for satisfying thl needs
of a select group of
customers. By using different formats, retailers are able to differentiate themselves from
their
competition.The most common kinds of retailers include specialty stores, department
stores, discount
stores, retailchain stores, warehouse retailers, and oflprice reiailers.
(1) Specialty Stores
Specialty stores offer a limited number of different product lines, such as women,s clothing
or sporting
goods, but provide their customers with an extensive selection of brands
and styles within each
product line. Examples of specialty stores include those operated by Toys "R" Us,
Clrcuit City, Tower
Records, and Eddie Bauer.
(2) Department Stores
Department stores feature a wide variety of different product lines and a selection of merchandise
within each line. These large stores have many separate departments that sell different types
of
merchandise, making a wide variety of goods available to consumers in one place. etoomingdatet
and Macy's are examples of two national department store chains
(3) Discount Stores
Discount stores, such as Wal-Mart and Kmart, sell a wide variety of merchandise at low prices.
Discount retailers focus on attaining a large volume of sales and in return give up some profit
margin
per sale.
(4) RetailChain Stores
Retail chain stores are multiple stores that carry much of the same merchandise and are
managed
with the same policies. ln many cases chain stores have the same owner, although sometimes
individuals own franchises that are part of a chain. Any kind of store, such as a spJcialty stors, 6
department store, or a supermarket, can be a chain store. For example, The Gap is a chain of
specialty stores that offers casual apparel for teenagers and adults. Sears and J. C. penney are two
large department store chains.
(5) WarehouseRetailers
Warehouse retailers offer a limited selection of many kinds of products.They deal in large quantities
and tend to have lower prices. Home improvement centers, such as Builder's Square and Home
Depot, and warehouse clubs, such as Sam's Club, Price Club, and Costco, are examples of warehouse
retailers.
 GENERATING E.COMMERCE / 163
(6) Off-PriceRetailers
Off-price retailers include factory o.rtlet stores, close-out stores, and one-price retailers.These stores
sell irregular or flawed merchandise, factory overruns-that is, excess merchandise-and other goods
at prices below regular retail prices.
(71 Others Retailers
Supermarkets and convenience stores are also retailers. Supermarkets offer a broad variety of
grocerles, as well as nonfood items such as toiletries and school and office supplies. Many
supermarkets also offer a wide selection of ready{o-eat items, such as prepared salads, sandwiches,
and entrees. Convenience stores, such as 7-1 1 and White Hen Pantry, also sell a variety of food and
other items. Their strategy is to provide customers with a convenient time and place to buy needed
items. Convenience stores are usually small and located on busy streets to make it easy for customers
to make a quick purchase.
Some retailers do not use a store as their principle means of contacting customers. lnstead, these
nonstore retailers contact customers by telephone, mail, the lnternet, or by personally meeting with
potential customers at their home, workplace, or some other convenient location. For example,
telemarketers phone potential customers to market goods and services. Some retailers send catalogs
to homes and businesses so customers ban order merchandise at their c6nvenience. Cybermalls on
the lnternet allow customers to browse for goods and services by visiting a site on the Worid Wide
Web. Finally, vending machine companies act as nonstore retailers by selling items from machines
that are located where people are likely to find them convenient, such as in gas stations or work
places.

5.15 Department Stores

Department Stores are large retail stores selling many different kinds of merchandise arranged in
separate departments. Such stores are found in nearly every important city in the world, and the
large department stores often contain more than 100 separate departments.The two major categories
of merchandise sold in department stores generally are apparel and home furnishings. Besides
making rnany diverse items available for purchase in one place, department stores.offer numerous
services, including delivery and mailing of purchases; credit seruice, usually in the form of charge
accounts; and fashion shows.
The organization ol a modern department store is often complex because of the large number of
goods and services provided. Typically, the operation of a store is conducted through five principal
divisions: the merchandising division, responsible for the buying and pricing of merchandise; the
sales promotion division, in controlof advertising, display, public relations, and other related matters;
the personneldivision, which superuises employment and the training and welfare of employees;the
operations division, responsible for customer and selling seruices, for deliveries, and forthe receiving,
marking, and maintenance of merchandise; and the finance and control division, which deals with
accounting, customer credit, expense control, and other financial and budgetary matters. Within
these five divisions are many subdivisions.The heads, or managers, of the five principal divisions
are responsible to the general manager.
Some stores find it practicable to lease certain areas within the premises to outside concerns, which
then run their own departments under the name of the department store. This arrangement is most
frequently used for such specialized goods or services as millinery, photographic supplies, shoe
repair, and beauty salons.

5.t5.1 History of Growth of Department Stores

Although some department stores were outgrowths of general stores, most originated as dry-goods
stores. The lirst dry-goods store to become a department store was the Bon March, established in
 164 / ELECTRONIC COMMERCE

Paris in 1838. Bythe 1860s it resembled the modern department store in size,
organization, and
administration. Printemps, established in 1885, also in Faris, was probably
the first store to be
opened as a department store. ln the U.S. the trend toward the transiormation of
dry-goods stores
into department stores began in the 1860s and R H. Macy & Company, lnc., in'N-ewyork City,
John Wanamaker in Philadelphia, Marshall Field.70s.
in Chicago, anb Jordan Marsh Company in Boston
were among the first to be reorganized as department stores during this period.
Among the innovations that characterized the operations of the early department
stores were the
clearly marked prices on merchandise; the system of reimbursement toior exchange
of returned
goods; and the sale of ready-made apparel for men. These innovations, successful
flom the first in
attracting customers, were continued and improved on not only by department stores
but by most
specialty stores as well.

Various economic and social changes that took place in the U.S. during the last tew OecdOes of the
19th century ensured the success of the U.S. department store. Particularly noteworthy were the
large concentrations of the population in urban centers; the growth of a large and relatively
irorp*erou,
middle class susceptible to the appeals of increased advertising;the intioduction of miss methods
of manufacture;the improved methods of transporting large quantities of goods to markets;and the
development of certain mechanical aids useful in conducting commercial operations, for example,
telephones, billing machines, and electric lighting.
The monetary value of department store sales increased steadily during the first half of the 20th
century. ln 1929 U.S. department stores sold more than $4 billion worth of merchandise, an amount
equal to 9 percent of the total retail sales in the U.S. ln 1935 the department store proportion of all
retail sales amounted to 12 percent, but it declined steadily to 6 percent of total national retail sales
in the middle 1950s. By the late 1980s, however, because ol aggressive merchandising practices,
such as establishing branches in the suburbs and in large shopping centers, the storei increased
their sales to more than $150 billion per year, or over 10 percent of total retail sales.
 GENERATING E-COMMERCE / 165
During the last decades the changing character of competition in retailing has challenged traditional
department stores. Supermarkets added nongrocery items;variety stores expanded their merchandise
offerings tremendously; and many discount houses increased the scope of their merchandise offerings
and became self-service.

5.15.2 Chain Stores

Since the 1920s an increasing number of department stores have been combined into chain
organizations, or ownership groups, with varying degrees of central control over individual stores
(see Chain Stores). ln some cases these organizations came aboutthrough mergers of long-established
stores, which retained their own names. ln other instances, they developed through the creation of
new stores by an original parent organization. Two of the largest chains, Sears, Roebuck & Company
and Montgomery Ward & Company, both founded in Chicago in the latter part of the 19th century,
were also notable as mail-order houses, publishing large illustrated catalogs from which the public
could order merchandise directly by mail. Both firms originally served principally ruralcommunities.
Following World War l, they opened retail outlets, which numbered in the hundreds by the late 1980s;
Montgomery Ward and Sears stopped distributing catalogs in 1985 and 1993, respectively. A third
major department store chain;,J. C. Penney, not only offered retail and catalog sales but also operated
a home-shopping channel on cable television. Two other chains, Wal-Mart and K Mart, showed
significant sales growth during the 1980s.
Other famous names included Abraham & Straus, Bloomingdale's, Filene's, Jordan Marsh, Neiman-
Marcus, and Saks Fifth Avenue. Many had branches in large cities and suburban shopping malls. As
the economy slumped in 1990, some of these stores experienced hardships, in part because the
holding companies that controlled them were saddled with debt.

5.15.5 SuburbanBranches
The growth of suburbs around large cities has been responsible for an important department store
development, the opening of suburban branches. The first such branch was established in 1930 in
Ardmore, Pennsylvania, by Strawbridge & Clothier of Philadelphia; many other d.epartment stores
subsequently followed its example, and suburban branch stores are numerous today.
Suburban branches often are grouped together in a shopping center, an aggregation of retailoutlets
coordinated for the convenience of customers and the mutual advantage of the stores. The suburban
branch is not operated as an exact counterpart of the parent store.The merchandise, for example, is
selected to meet the needs, tastes, and desired price ranges of customers located within a particular
trading area.
More recent methods adopted in many department stores include the self-selection of merchandise
by customers and a cash-and-carry policy. Both methods are designed to reduce operating expenses.
ln some stores that have adopted the cash-and-carry policy, delivery services have been eliminated
altdgether. ln many stores an extra fee is charged lor delivery service.

5.15J Franchisc
Franchise as in government and economics, is a special right or privilege granted to an individual or
a group to carry on a particular activity.The term is used in severalways. A municipality, for example,
awards franchises to corporations to operate public utilities, such as electric and telephone services,
in a given area. Rates to be charged and services to be provided to the public, as well as tenure and
labor regulations, are stipulated in a contract between the parties. lf the terms of the contract are
violated, the grantor may institute proceedings in order to revoke the agreement.
 166 / ELECTRONIC COMMERCE

ln business, the term franchise refers to the exclusive right given

to someone to market a company,s
goods or services in a designated territory. ln return fo-r
a-specified fee ano usuatty a snare of tne
profits, the franchisor provides the product, the name,
and sometimes the prrysicar pLnt and the
advertising. one well-known example of a franchised business is McDonald's,
the fast-food restaurant
chain. ln politics, the franchise is the right of an individualto vote.

S.l7 Business 0perations

A variety of operations keep businesses., especially large corporations, running
efficiently and
effectively. Common business operation divisions inciude-
(1) Production,
(2) Marketing,
(3) Finance, and
(4) Human resource management.
O Production
Production includes those ac ualizing, designing, and creating products
and services. ln recent years changls in t[e wiy goods are proouceO.
Today, computers help monito perform work]Flexible, high-t6ch machines can do
in minutes what it used to take people hours to accomplish. Another important
development has
been the trend toward just-intimeinventory. The word inventory refers to the amount
of goods a
business keeps available for wholesale or retail. ln just-in-time inventory, the firm
stocks only what
it needs for the next day or two. Many businesses rely on fast, global computer
communications to
allow them to respond quickly to changes in consumer demand. lnventories are thus
minimized and
businesses can invest more in product research, development, and marketing.
O Marketing
Marketing is the process of identifying the goods and services that consumers need and want
and
providing those goods and services at the right price, place, and time. Businesses
develop marketing
strategies by conducting research to determine what products and services potential.customers
th
think e to purchase. Firms also promote their products and seruices through
suchte ng and personalized sales, which serve to inform potential customers
and mo e. Firms that market I roducts for which there are always some demand,
such as foods and household goods, often advertise if they face competition from otherfirms
marketing
similar products. Such products rarely need to be sold face-to-face. On the other hand, firms
that
market products and services that buyers willwant to see, use, or better understand before
buying,
often rely on personalized sales. Expensive and durable goods-such as automobiles, electronics,
or
furniture-benefit from personalized sales, as do legal services such as the provision of insurance
policies or tax preparation.
D Finance
Finance involves the management of money. All businesses must have enough capital on hand to
pay their bills, and for-profit businesses seek extra capital to expand their operations. ln some
cases, they raise long-term capital by selling ownership in the company. Other common financial
activities include granting, monitoring, and collecting on credit or loans and ensuring that customers
pay bills on time.The financial division of any business must also establish a good working relationship
with a bank. This is particularly important when a business wants to obtain a loan.
tr Human Resource Management
Businesses rely on effective human resource management (HRM) to ensure that they hire and keep
 GENERATING E-COMMERCE / 1 67

good employees, and that they are able to respond to conflicts between workers and management.
ilnV speciiists initially determine the number and type of employees that a business will need over
its first few years of operation. They are then responsible for recruiting new employees to replace
those who ieave and for filling newly created positions. A business's HRM division also trains or
arranges for the training of its itaff to encourage worker productivity, efficiency, and satisfaction' and
to prohote the overall iu".".. of the business. Finally, human resource managers create workers'
compensation plans and benefit packages for employees.

5.18 Business in a Free )'larket Economy

to
The economy of the United States, as well as that of most developed nations, operates according
countries,
the principles of the f ree market.This differs from the economies of socialist or Communist
play strong role in deciding what goods and services will be produced, how
where governments a -ost
they w'iil be distributed, and howhuch they will (seeSocialism; Communism). Businesses in
people in f ree-market
free-market economies benef it lrom certain fundamental rights or f reedoms. All
societies have the right to own, use, buy, sell, or give away property, thus permitting them to own
in free
and operate their own businesses as piivate, profit-seeking enterprises. Business owners
their businesses however they like, within the limits of other, mostly non-
markets may choose to run
invest
business-oriented laws. This right gives businesses the authority to hire and fire employees,
and choose the markets where they want to operate' ln
money, purclase machinery anO
"[uipment, people'
doing-so, however, they miy not violate or infringe on the rights of other businesses and
Free-market businesses also have the right to keep or reinvest their profits'
degree through
All free-market economies, however, keep the rights of businesses in check to some
laws and regulations that monitorbusiness activities. Such laws vary from country to country, but
frorn being
they generally encourage competition by protecting small businesses and consumers
Antitrust
f'uri 5y more powerful, iarge enterprises. For example, in the United States the Sherman
that impede
Act, enacted in 1g90, anO iire Clayton Antitrust Act of 1914lorbid business agreements
merce' T Act also protects against unfair

^l:?l;fl: :TJi::h"ii?:il;:;l?J;ffi:
thepricecfitsproductsorservices,amongotherprovisions.
Other laws prohibit mergers that decrease competition within an industry and require
large merging
companies io notify the FederalTrade Commission (FTC) for approval'

5,19 Business Activities r GUllGDt Trends

their operations into
Business activities are becoming increasingly global as numerous firms expand
tap emerging markets by pursuing
overseas markets. frlany U.S. firms, for e-xiripte, attempt to
Multinational
business in China, nOi", ["tr America, and Russia and other
f
Eastern European countries.
at once, typically move operations to
o do the work well. Production jobs

'JilHiffi :;Tffi il?:;:iyJ:; keep

I['J
businesses
domestic division, and often work them longer and harder. Most U.S. multinational
human resources divisions
the majority of their upper-level managem6nt, marketing, finance, and
within the United Statbs. They employ some lower-level managers and q ua:l-lltber of their
develofing countries. MNCs based in the
;;;"ii"; *o*"r" in oiri."., factories, and warehouses in
to Central and Latin America, China'
United States have moved many of their production operations
lndia, and Southeast Asia.
 168 / ELECTRONIC COMMERCE

Mergers and acquisitions areals becoming more common than in the past. ln tn" unit"o;;t]
R J Reynoiol iniust''ies uougntlooJ
:i:Tll::t?:.T"S
Brands ?:"1,1J,11!
to form RJR Nabisco l?:g,T""ufacturer
Holdings corp. in r gss, and in r ggJine-il;.iilffi;:,silnt Nabisco
electronics, and appliance manufaclurer westinghouse n"n"r",orl
Electric corporation purchased media
production company CBS lnc.
With large mergers and the development of ne
now wield more economic and political power
response, public pressure has increased for bu
operate according to higher levels of ethics. Fir
required by law to observe-nondiscriminatory polic
Some companies are also now more aware of t
local communities by sponsoring events and encouri
Businesses will continue to adjust their operations according to the competing goals of earning
profits and responding to public pressures for
them to becomJ benelicial social institutions.
As you set out to create your own e-commerce site, keep
in mind allthat we,ve discussed here. with
planning, hard work, and careful observation, you
can build a .it" th"t,. flexible enough to keep up
with the ever-changing needs of your customers. And
then you'll really be in e-business.
5.20 E.Business
t
e-business is the integration of
6nology. apart
and
plication such as e-mail, news
revolutionizing
usiness is more than e-commerce, of business.E_
ogy to connect extended terms; reach new and existing

:ilffi ili"il:ffffi 3::1'f:JiY;llLi,X?i["J$:.ff :,I:

sumer.
5.20.t lntra Business
The intra business phase begins with setting up simple networks
for e-mail and messaging which
can be upscaled to a full intranet that enablJs work-group computing.
ln today,s worh where skill
and customer service often become the true differentiJtor, peopleiocated
away from each other need
towork noner u gsolutionssuch
as Lotu st that. n y the company,s
internal We ca t this stage when
most if not allthe business processes have been b
5.20.2 Business.to.Business (BTB or B2B)
As the term suggests, business-to-business involves connecting
a company with its associates
downstream (distributors and resellers), and upstream with its u"noor..
oLviolsly, toiirue benefits
to accrue, all these parties must have well automated processes
that have been Net enabled. Then
routine transactions including placing of orders and scireduling
of production can be automated, say
at predetermined recorder levels. This speeds up the process,
Ldu.". costs and makes the company
more competitive.

5.20.5 Business.to-Consumer (BTC or BZC)

E-commerce is the final. act, so to say, of the goods or services
being fulfilled for the agreed
consideration.This cycle is dominated by transactions between a company and
consumers at large.
 GENERATING E-COMMERCE / 1 69
Most companies in lndia today have static websites which are meant to offer information but not for
online shopping. lndia's best known and perhaps the first electronic shopping mall is the rediff.com
site where you can place orders for books and music. Culturally, this is a very big first step as people
start feeling comfortable with shopping online and actually start enjoying the convenience. For e-
commerce to proliferate, more people on the Net, the merrier. the response on the Net should
improve, which is a function of network speed. And we need cyberlaws to recognize and adequately
define elements of the electronic transaction including cross border issues, taxation and validity of
the electronic signature.
e-Commerce is changing the boundaries of where the shopper is located. Local shops now have the
power to offer their goods to the entire world market and compete with much larger retailers. Leverage
your investment in information technology to automate all of your transactions between your company
and your customers.
One of the firm ECTA provides retailers a complete technology solution for business-to-consumer
electronic commerce. The complete solution covers software components, hardware components,
implementation, maintenance and support services, and a complete training solution from web
storef ront design to post implementation services. Using these tools, customers can increase brand
equity, drive growth, and provide consistent customer tnteractions through all sales, marketing and
customer service activities, to dramatically improve the customer shopping experience across multiple
channels.

5.20.4 Government/Public-Consumer
Finally, to complete a Net transaction you need an online payment gateway that links the lnternet to
the existing credit card processing/validation network. The good news is that, all this will happen
very soon. The Central Government has reportedly announced plans to introduce cyberlaw bills
during the winter session of the Parliament. There are also plans to build a high-speed network
backbone capable of servicing millions of users expected to go the Net in lndia. Companies like
Equifax are planning to set up provide the required degree of convenience and security to Netizens
wiching to transact e-commerce
The public systems are largely Government run for the convenience of its citizens. This could
involve setting up a large number of kiosks which may be purely for information with the Government.
For instance, paying water or electricity bills property tax and so on. The applications are endless
and can go a long way in bringing easier access and transparency to the Government's workin$.
Already, several states such as Tamil Nadu have announced ambitious plans to set up kiosks all
over the state.
The transition to electronic commerce/electronic data interchange (EC/EDl) in the federal procurement
acquisition process is moving the federal government from a paper-based to an electronically-based
procurement system. While the concept of EC/EDl is not new to business operations, it does open a
new arena of processes, procedures and terminology to business owners/managers unlamiliar with
and unaccustomed to using electronic commerce.

5.21 Staying in E.Business

To f ind the nrost cost-effective marketing for your site, experiment with your advertising while keeping
a sharp eye on your sales.Try new things: lmplement innovative banner ads, play around with things
like affiliaie marketing, consider sponsorships - and see how your sales are affected.
And keep at it.Your online storefront, like your business itself, must continue to grow and change to
accommodate the evolution of your customers and products'
 170 / ELECTRONIC COMMERCE

l-his flexibility is key to keeping your e-busines

over the years, you need to consianily reevalua
gVgr-chanoinrr nalrrra
ever-changing nature ^{rh^lAr^A ^^- i-
of the web can )-.. ,.
be daunting out rt can arso bring customers, connections,
opportunities that never wourd have been possibre and
otherwise.
5.22 The lnternet and e.Business

5.23 Electronic Commerce

A startup bookstore with the name,,Am
that raises $54 million. Federal Expres
Proclamations are made about g biilion
surrounding each of these stories, in the articles,
the term "electronic commerce.,'
So what is it? Electronic commerce, ore-commerce,
refers to alltransactions thattake place
for the purposes of this article, it is defined electronically;
as goods and services that are bought and sold
online.

5.23.1 Who is Using

E-commerce is still far f rom widespread, but it has
obviously caused enough of a buzzfor us to
up and take notice. so who is using e-commerce sit
torlay? wrrere is the buzz coming from?
ine purchasing right now. The ones who have
ir investment have been direct mail companies
lfillorders. REl, J. Crew, and a host of smaller
you configure
shops selling
roducts have

ne are business_to_business. ln fact, the

$500 per month online, compared to $150/
ably due to volume and cost as much as
uters and equipment online (including some
y personal purchases are more likely to be
 GENERATING E.COMMERCE / 171

5-23.2 Security Concerns

Despite the fact that e-commerce technology has been around for a while, consumers are only now
beginning to use it in large numbers. Of course, this is partly due to the fact that most Americans do
not yet have regular access to the lnternet. With the number of people online jumping by 50% every
six months, though, this won't remain an issue for long'
Another concern cited by lnternet users is security. Many people leelthat submitting their credit card
numbers across unknown computers, routers, and cables on the lnternet is like taking a shortcut,
alone, through an alley in downtown Manhattan, at night, with their wallet showing. An interesting
article I recently read claimed, very plausibly, that the banks and software companies that make
money on the royalties from encryption technology actually encouraged this fear, through the nredia
and otherwise. Whether this is true or not, deep concerns about the security of the lnternet have
certainly become prevalent.
ls there any reason for concern? Probably not. lf you enter sensitive information into a secure Web
site, it would take enormous amounts of time and resources to pinpoint your data on the cacophonous
Net, assemble it together, and decrypt it. Considering that this is the same "sensitive" information
that we routinely give to an unknown waiters in a restaurants, who take it and disappear for several
minutes, the level of concern hardly matches the threat.

5.23.3 llow it Works

To set up a Web site that allows customers to purchase a product or service, special software needs
to be installed on the Web server that hosts the company's Web site. Large software companies,
such as Microsoft and Oracle, offer high-end e-commerce server software. Many other companies,
such as mine, have found it to be more cost-effective to build their own, more easily configured
products. Either way, what the customer ends up interacting with as they are browsing the site is an
online "shopping basket." ltems can be added to or taken away from the shopping basket, and the
items in the basket are remembered by the Web site until the customer is ready to "check out." At
that time, they are taken to an encrypted part of the site. Credit card information is entered and the
product is delivered bY mail.
On the selling company's end, the process is much more familiar. Aside from maintaining the Web
site, the f ulf illment department simply needs to wait for the orders to come in by email or fax. Money
is simply deposited straight into their bank account.

5.23.4 The Future of Electronic Commerce

just
Some of the directions that the industry is moving are truly incredible. VISA and MasterCard
released the specifications for a technology that will make online cash and smart cards more viable.
Hewlett Packard just purchased VeriFone, the makers ol those boxes that your card is swiped
through at the supermarket. We can'l be far from the day when new computers and public Net
you
terminals are shipped with magnetic readers that let you swipe your credit card through them if
want to buy something online.
More and more companies are positioning themselves to reap the profits when online shopping malls
are as ubiquitous as traditionai shopping malls. Almost all of today's Web sites seem to be selling
just a
something, even if it's just a T-shirt or bumper sticker instead of a full product line. Far from
trendy buizword, e-commerce is fast becoming an integral part of the lnternet experience.
would appear that allthe hype about lnternet security is not deterring users from buying online, as
,'lt

many ."rket insiders had predicted it might. ln fact, approximately one of three net surfers engages
 172 I E\ECTRON|C CoMMERCE

s;':"s:[:whileonline,accordingtoaneWsuryeyfromthelnternetc
Results also showed that while one in three
web suders shops during his/her browsing
home shoppers spend more than sessions,
$50 on average per month; business shoppers
$500 per month; and cybershoppers ui.ii"n average spend more than
of eight storefronts per session.,,
5-24 An Integrative yiew 0f Erectronic Gommerce

The first consideration is what unifying

the various electronic support technoio
have gained some degree of currency,

the various segments of electronic commerce

to

Further contributions are needed, and integration

of the many useful features of existing models
needs to be achieved' on the basis of work undertaken
in the area during the last few years, a five-
phase process moder of erectronic commerce
is suggested in Exhibit .1.
Exhibit 1: A Five-phase process Moder of Erectronic
commerce
O The pre-contractual phase, concerned wit
products or services being sought, and
tr The contractual phase, in which a formalthr
including the establishment of the terms an
contract;
hase orders are placed and processed, the
and post-delivery functions (e.g. inspection

yment authorisation, pa)/ment and remittance

is sathered and reported,

and the storase and anarysis or trade .,",i1?i:1,"#Jl'|,T::'""
 GENERATING E-COMMERCE / 173
Exhibit 2' aller Clarke (1992a), provides a schematic representation of these phases.
Electronic commerce can have varying degrees of impact, and Exhibit 3 proposes
a classifications
scheme. Elements of electronic commerce can be used to simply automate existing processes.The
opportunity can be taken, however, to rationalise procedures, perhaps v.rith m'inor impacts
on
organisational structu.res, and thereby to reduce costs, and improveihe speed and quality
of services.
Beyond this, the implementation of electronic sut
organisational structures and processes within t
can be described as'business transformation,; whe
it is'business re-engineering'. Because these s
business partners, automation, rationalisation, tra
to internal structures and processes, but may occur across organisational boundaries and along the
industry value-chain.

5.74.1 lmplications
It is contended that the use of an integrative model as a basis for discussions of electronic commerce
will have important advantages. lt will be beneficialfor companies and government agencies because
it brings into a common forum the various people who are applying computers and iommunications
to support different phases of business processes. Discussions a-bout prioritisation of, for example,
directory versus purchase order transmission, are provided with a context.
lndustry associations, regulators and policy-makers are also serued by the model, because it becomes
much easierfor them to gain and retain perspective on the industry iectors and segments involved,
and evaluate the contribution that each alternative initiative can make to econ6mic, social and
political objectives.
Researchers are, in one sense, disadvantaged, because the model recognises the inter-relatedness
of the many facets of industry and government activities, and hence makes it much more difficult to
segregate areas and activities which can be readily submitted to the conventionaltools of analytical
research. On the other hand, applied research must serve the needs of business and government,
and must therefore reflect the real complexities of business organisation and processes.

5.25 levels of Web Presence

There are four basic levels of Web presence. Each is more sophisticated than the last and requires
more resources, but also produces more benefits
(1) Content Only
An electronic brochure publishes information about your company and products, but has no interactive
ordering mechanism. lt's an easy and low-cost way to distribute information about your business, but
customers have to log off to order, and the content becomes outdated quickly.
(2) Online commerce, but no integration with your business systems
You can create dynamic catalogs, your business can operate 24 hours a day, seven days a week,
and you can take orders over the Web. But if it increases your business, you may put a huge burden
on internal analog processes, particularly if orders have to be entered manually.
(3) lntegration of your Web site with your business's payment systems only
You can collect payments, but there is no easy way to build links, lor example, between Web orders
and the inventory in your warehouse.
(4) Complete integration of your Web site with the rest of your business
 17 4I ELECTRONIC COMMERCE
This requires the most planning
of your business-payment sys
3f V.our sVs
business functions_to make vorrr rtinirat "",,lrry."onrrot, and all of your traditional
^,^:_::^::,1:.lif
*::::l::':::".:,;:::.Ti.":'o'gdo'*#;';,i;:iiff"":xiJ;3[x:1;:I:::ffi :x;
Your data center-web site
and back-end systems-shourd incrude.
a
D fi,il:'".#:ffi:r,H.?i1l^?31;:1,1::i,1?_.1web
Web server software for building s.tes and perform orher rr funcrions
,"intoini
rntng your Web site, such as
Lotus Domino Co
Webserverpro "nJ
o Merchant server software, such
as rBM,s award_winning Net.commerce
Domino.Merchant, which enabre or Lotus,
furchase processing over the rnternet.

: :illJnf H:r:l"i"T ,;f ;Xn:#5, Nfi ii#l"o, ", . ".,,"'i"""

l,
ipt and d er ive ry
a Peripheralsoftwareior hanoling s;ipping, taxes, site analysis,
D A security firewallfor protectinriv"r? and other information.
company,s network and information.
o A high-speed telecommunicatiJn
connection iuch as it
or. fractional r1 line.
"
n setting up a Web site.
deploying hardware an
chances are yourtime i
iness side of things.
Determine the level of your Web presence:
tr Content only
D Online commerce, but no integration
with your business systems
a lntegration with your businesjs
0 ;"6;;isystems
Comptete inregrarion with your b;"r;;;;ystems onty

5.25 Exactness of the Gontents

o identify what entices them to patronize

g customers has been to
offer purchasing
ograms _ direct marketing and incentivE

5.27 E.com Web presence Xodels

on certain skits and wit entair a certain

set of responsibirities.
profit.you'il need to understand tne
type oiwJ,ii"irn"rionarity
mponents can provide this capabiriiy,
so that you can estimate
 GENERATING E.COMMERCE / 175
Let's examine the three most common Web business models:
tr Product sales (selling goods),
D Service sales (offering services),
O lnformation delivery (providing an informationalWeb site).
Here's an explanation of how that modelworks, along with information on the responsibilities, costs,
and profits associated with it.
With research firms projecting e-commerce revenues totaling more than $100 billion in 2003,
businesses large and small are considering jumping into the electronic commerce marketplace.
The lnternet is quickly becoming a crucialfactor in many smallcompanies'growth strategies. According
to an e-merchant study released earlier this year by lnternet market research.f irm Keenan Vision, the
number of e-merchants will number 400,000 in 2006.
Yet, building an electronic storefront'may seem particularly daunting to small businesses and retailers;
the maze of e-commerce products and services available makes it easy for a merchant to get lost.
Many small companies find building and hosting a Web site on their own to be cost-prohibitive, and
generating traffic to their sites can also prove to be a difficult undertaking.
Clearly, building the right foundation'for successful e-tailing takes careful consideration and solid
strategy, but the step-by-step process that follows should help demystify the process and provide an
easy{o-follow guide.
It's also important to note that a full-service transactionalWeb site may not necessarily be the right
strategy for all merchants. lf the products or services you ofler do not lend themselves to the Web,
or if selling online is not a key objective for your company, you may want to consider a "brochure" site
that promotes your business and helps create foot traffic at your brick-and-mortar office or shop. A
brochure site does not sell products or services online, but instead is meant to be informational and
serve as an advertising/promotional tool.

5.28 Basic Steps for Conduting Business on Line

One of the most popular lnternet myths claims that building an online store is easy: Allthe customer
has to do is point, click, and buy! But in reality, successful e-commerce is far more complex and
unlike any other Web site project you may have tackled in the past. Before that first cyberbuck f inds
its way into your bank account, you need to do considerable research and planning.
There are five basic steps to complete before transacting business on yourWeb site.You may select
separate vendors to assist you in each step or look for a vendor that provides an integrated solution.
Choosing one vendor that offers a suite of e-commerce seruices can simplify the process (and save
time and money).
The consumer moves through the internet to the merchant's web site. From there, he decides that he
wants to purchase something, so he is moved to the online transaction server, where all of the
information he gives is encrypted. Once he has placed his order, the information moves through a
private gateway to a Processing Network, where the issuing and acquiring banks complete or deny
the transaction. This generally takes place in no more than 5-7 seconds.
There are many different payment systems available to accommodate the varied processing needs
of merchants, f rom those who have a few orders a day to those who process thousands of transactions
daily. With the addition of Secure Socket Layer technology, eCommerce is also a very safe way to
complete transactions.
 176 / ELECTRONIC COMMERCE
There are several basic steps involved in becoming commerce Enabled.
A Domain Name Registration
D Obtaining a DigitalCertificate
O Finding a Provider of Online Transactions
O Web Hosting
D Server Hosting
D Web Store Design
D Payment Solutions
A Creating or Purchasing a Shopping Cart Software
O Getting an lnternet Merchant Bank Account
5.28.1 Domain Xame Registration
As of not too long ago, you can now register domain names up to 67 characters in length, including
the ".com" or ".net" or ".org" extensions. No longer will you be limited to the previous 23 character
domain names! To protect a business it is necessary that domain names are not copied and therefore
more are the characters more safe you are.

5.28.1.1 Tips for Registering Domain Xamds

D Register domain names that are "catchy" and in demand in the hope to sellthat domain for
a large profit in the future (ie. bingo.com sold for 1 million dollars this year!)
O Register domain names for your company and products that are over 23 characters long.
(For example, we registered "internetmarketingcenter.com" when before, this was something
we could not do)
O Register a better domain name than what you have now (for example, if your domain name
is difficult to remember, has a .net or.org extension... you can get a .com address that will
much better suit your business)
D Register "KEYWORD RICH" domain names that are going to help skyrocket your search
engine rankings! (That's right just by using keyword saturated domain names you can
drastically improve your search engine rankings... really it's that easy!)
D Register your own name as a domain. For example, I registered www.coreyrudl.com, and I
also registered a few domains for my family members as gifts!You can place whatever you
want since www.yourname.com is unique to you. Not to mention how neat it is to have your
own name on the lnternet.
About 5-6 years ago when the lnternet was still very new, a few people saw an opportunity. Relying
on the idea that the lnternet was going to become massive, they started buying up domain names.
Why? So when the lnternet did become huge and the large corporations decided it was tirre to
capitalize on this new marketing medium, they could turn around and sellthese domain names to the
big corporation for 1000 times the price they paid!
lmagine if you had purchased mp6 . com or gambring. com when they f irst became available! You
would be a millionaire today with almost no work or investment on your part! Heck, the domain
"business.com" was just sold for $7.5 million (that's right, $7,500,000)... I don't know about you, but
most people could retire off of that quite comfortably! Bingo.com (a site a personal friend of mine
owned) sold for $1,000,000. WallStreet.com also sold for 1 million dollars this year... and the list goes
on and on.
 GENERATING E-COMMERCE I 177

Now don't get me wrong, this quality of domain names is no longer available'.. but allowing domain
names up to OZ characters has completely expanded your opportunity to register domain names that
would not have been available otherwise. All of the good one word ".com" domains are still taken but
catchy phrases and longer company names over 23 characters are now available!There are thousands
of domains.sold every day, some for tens of thousands of dollars, to corporations that want the
domain you own.
To give you an idea, we were never able to register the domain name "internetmarketingcenter'com"
because it was too long, but as of a few days ago, we were able to register it. lf someone had
registered the name before us, we would have had to buy it lrom them at an elevated cost. All they
that in
nad to do was register this domain for a mere 560 US and they could have charged ten times
pure profit! (Fortunately we got to it before anyone else did!)
do this
Protect your own company names, product names, etc from people that ARE low enough to
to you. Register your domains now! Protect yourself and your business interests'
This is also an opportunrty to get that domain name that really suits your business'
suit your
lf you were one of the unfortunate ones that had to settle for a name that really did not
lnternet Business or were even stuck with a .net or .org address, this is your chance to get the
domain name that reflects your company and will be easily remembered!
a ".com"
There is a difference between .net and .com. lf you are only using a ".net" address and not
hard earned visitors. Everyone remembers ".com" before ".net", it's that
address, you are losing your
-bro*."rs,
if the extensio t is not entered, will default to ".com"' So like I said
simple. Even most *"6
suited your
before, if you only have a .net address because and you could not find a 'com that
website or business... NOW lS YOUR CHANCE!
,,Keyword Phrases" are now a HOT Opportunity... a catch phrase alone can generate a giant source of
traffic to your website. We just registered:
www . you-win-some-you-lose- some' com
rankings'
Not only are these phrases catchy but they can also boost your search engine
Search engines love url's that are saturated with keywordsl
put them in your
Think of all the keywords and keyphrases for your product/service/website and
get ranked higher in the search engines'
URL. Load the domain name with your best keywords to
it redirect to your main site or use it as a
Then submit that URL to the searih engines... and have
,,doorway,, page as we talk about in the course (to get a much higher ranking in the search engines)
to forward traffic to You.
and only took a lew
Here are just a few of the exciting URI-s that will pull great in the search engines
of registering your first and last
minutes of brainstorming to com-e up with...The last two are example
name as a domain.
www . comPuter-networking- techni caI - support' cout
www . comPuterne tworkingt'echnical suppor t' corn

www .discount-christmas-gif ts' com

www .di s countctrri s tmasgif ts' cos
www. mp3-music-songs-artist ' com
www. mP3musicsongsartist ' co
www. pokenon-cartoon-game-toys' com
 1 78 / ELECTRONIC COMMERCE

www. pokemoncartoongametoys . com

www . di s count- computer- srof tware- s tore . com
www. discountcomputersoftwarestore. com
www . eas ter-bi rthday- chri s tmas _wedding_ cards . com
www. easterbirthdaychristmaswedding.cards . com

wwlr. coreyrudl . com

www. hoperudl . com
It is that easy! lmagine if you spent a few hours racking your brain what you could come up with.
You may have noticed that I gave examples with hyphens and without hyphens... it is a litile known
fact that search engines prefer UREs with hyphens and visitor prefer them without so make sure you
register both!
There are only a few companies that are registering the 67 character domain names, and even fewer
that are reliable companies... so go to http://www.marketingtips.com/domains.htmland start registering
your domain(s) now!
Start brainstorming and coming up with names right away and register as soon as you can... for a
mere $60 you cannot go wrong.That is only $30 a yearfor 2 years... it does not get any cheaper than
this!YOU CAN'T LOSE!
ln a time when a domain name is,registered every two seconds, it is becoming increasingly difficult
to find that perfect domain name for your cause. ln such a situation, it has become necessary to
devise a method to determine the best domain name for you.
Unfortunately, there is no straightforward method for this purpose. The best we can do is to try to
achieve a balance between the different expectations and objectives you have about your
domain name.

528.12 Sjectiyes
Objectives behind needing a domain name and expectations from it vary in different degrees from
person to person. The important thing is that you have your objective per{ectly clear in your mind.
Without a clear purpose, you may end up with a domain name that can actually hurt your business
instead of helping it. lf you rush in, you may end up with the domain name good-dealz4u.net instead
of ValueShopping.com when both were available. Be careful.
The question you have to ask yourself is, what are you trying to achieve with this domain name? ls
it to develop a long-term online brand, is it supplementing an offline brand, is it to work towards short-
term building of traffic or is it the best balance between all of these?
It is understandable to have more than one objective regarding the use of your domain name. For
example you may want your domain name to work as a'traffic catcher'and also as an online brand.
It is usually acceptable to have more than one objective, provided you understand them both entirely,
clearly and separately.Yet, it is difficult to achieve all your objectives with one domain name. lf in the
course of your search, you find the perfect balance, then consider yourself lucky. ll not, then keep
each objective separate and work with them individually. lt is better to have two domain names
pointing at the same site, than to have one that does more to confuse a visitor than enlighten'him.
5.28.1.3 Your Domain Xameas a Brand
ln essence, a domain name is an lnternet address. The only technical purpose it serves is to locate
a computer on the lnternet.Yet, taking a broader perspective, a good domain name serves not only.
as a piece in a technical puzzle but more importantly, as your identity, brand and personality online.
 GENERATING E.COMMERCE / 1 79

Feople may come across your domain name from an advertisement, through search engines or
through word of mouth. ln any case, your domain name will work towards forming an impression
abouiyour online presence. A good domain name will usually form a good first impression in a
person's mind, but a bad domain name willalways form a bad one.
people are impressed more easily through value rather than products;characteristics rather than
facts. lt is important to have a name that conveys what you do best, instead ol just conveying what
you do. ln short, GreatBooks.com works better than WeSellBooks.com, and the reason is obvious.
5.28.1.4 Your Domain Name as a Handlc
As I stated above, people encounter domain names in a variety of places, many ol which will not
provide one with immediate lnternet access. This requires a domain name to not only generate
interest in people, but also stay with them until they get the opportunity to use the lnternet' Most
good domain names are eye-citchers, which me tns that it does not take more than a glance f rom a
potential visitor for it to stick in their minds.
What's in a name? Plenty when you are an e-tailer. lt is not only your company's brand name, it's also
your address in cyberspace. Once you've selected what that name will be, you must register it with
interNlC, the agency that registers and maintains a database of domain names.You can obtain a
domain name d-irect-ly from one of many providers - NetworkSolutions.com and Register.com are
just two examples of these registrars. However, your lnternet Service Provider or your e-commerce
service vendor(s) will often perlorm this task for you.

5.28.2 0btainingaDigitalCertificate
A digital certificate, also known as a SSL Server Certificate, enables SSL (Secure Socket Layer
encr:yption) on the web server. SSL protects communications so you can take credit
card orders
cannot eavesdrop on you. Any egommerce company will require
secuiely and ensure that hackers
you to have SSL before you can use their services.
Thankf ully, for most people obtaining a digital certificate is not a problem. For a minimal
fee, one can
usually uie the certificaie owned by the web hosting company where your page resides.

5.28.3 Finding a Provider of Online Transactions

you
Before you start looking for a provider, you should stop for a moment and consid-er what exactly
completing in a month? How many products do
need. How many translctions do you expect to be
the software need to be? How much are you
you have to put on your web site? How complex does
willing to spend?
There are a lot of online transaction providers out there, and they all have varying packages. Deciding
on a provider's package that fits your needs is perhaps the most important aspect in creating
an
eCommerce website.

5.28A Web Hosting

the
Web hosting is a very important step in this process, as this is how you gain a presence on
internet in the first Place.
It is important that the web hosting company is capable ol providing you with the
level of service that
you need to maintain your web store. A few things to look for are:
o Good uptime
o Good technical suPPort
D Fast connection to the Net
180 / ELECTRONIC COMMERCE

tr Staff that is knowledgable about eCommerce

D Compatibility with major eCommerce providers
It is always good to spend some time when choosing a web hosting company, as there are many'fly-
by-night' businesses out there. For the money you're spending, make sure that the compahy is
reputable.

5.28.5 Server Hosting

Another major decision that businesses joining the electronic marketplace must face is whether to
buy a server and host their Web site in-house, or to outsource the entire operation to a service
provider. For many smaller businesses, outsourcing is the most viable and cost-effective option.
Establishing your own operation is complicated and can take several months' setup time, whereas
you can get set up in less than an hour if you use a hosting service. A hosting service willalso speed
the time it takes customers to download pages on your Web site, improving the customers'experience
on your site.

5.28.5 Web Store Design

The key decision at this step is to determihe whether you plan to build your site yourself or have a
provider build it for you. lf you choose to build your site yourself (either by purchasing a related
software package or using a "browser-based" store-building package that you download from the
Web), keep in mind you will not only have the initial task of construction but also the ongoing
responsibility of making modifications to the site.
With many Web-building services and software products available to assist businesses in designing
a Web store, you do not have to take on this project by yourself. However, even with a Web-building
service provider, you still must consider several critical issues to ensure that the site you build
meets your vision and needs:
D What products/services do you want to sell?
O What do you want the look and feel of your logo and your site overall to be?
D What type of navigation tools do you want to use?
A By what forms of payment do you wish to transact business?
O How are you going to calculate tax and shipping charges?
tr YourGoal
What do you want out of the internet? On-line Sales? Customer Service? Electronic Brochure?
Product Support lnformation? ln order to be successful, you must define your goal upJront and work
towards it.
O YourTarget Market
Who are you trying to reach? Who are you selling to? Who are your prospective clients? Along this
line, who is your competition?
tl DomainName(www.yourcompany.com)
What do you want for your internet address? Go to www.networksolutions.com and type in an
address. ls it taken? lf not, you can register that domain name lor $70.
O Web Hosting/lnternet Access
Your internet site needs to be stored on a server so that everyone can see it on the internet. Web
hosting can cost as little as $19.95 per month.
O Site Planning Outline
 GENERATING E.COMMERCE / 181

How many pages do you want? Which buttons should be accessible on the front
page? ls there a
form? The navigation of your site has to be quick, clean and simple'
tr Design &Writing
you must go through and write out the content. Do you have a logo, pictures, artwork? Think through
p"g-" you dlsignated above in site planning. Write the copy and the associated artwork
"u"ry
required.
O Put Your Site "Live" on the lnternet
At this point, all the internet pages and graphics are copied to.the web hosting
provider. Now,
can type in your domain name (www.yourcompany.com) and see your site on the internet'
everyone
O Register with Search Engines
with the top search engines -
How will everyone find you? Your neW internet site must be registered
Yahoo, AltaVista, Excite, HotBot, Snap, GoTo and others'
O lnternet Marketing
people to find
for
This is where you get your people. You have to put little crumbs all over the internet
you. These crLmUs inttuOe banner ads, E-mail marketing, guaranteed click-through with GoTo'com,
links with other sites, etc.
UpdateYour Site
Every time there is a change, new product, new service, new price, new event
schedule' new press
release...Put it on the internet.
is the Goal?" Many sites
The most important question to answer in developing your web site..'"What
don't receive any responses at all. Pretty disappointing if you
lack any focus or direction and likely
were expecting instant fame and fortune.
Pick one of these common goals to build your site around:

Fig 5.1 Catalog

 182 / ELECTRONIC COMMERCE

o lntroduce your company to everyone - outline of products/services,

contact inlormation,
brief info
o Detailed information about products/services - spec sheets, pictures,
answer questions
O Collect sales leads to follow-up
D Provide opportunity for quotes on the internet
O Sellproducts(E-Commerce)
To be able to get sales leads, information for quotes, requests
for catalogs, or demographic information
about your customers, have them fill out a short form on the internet.
You have to get written a small script that will turn the information
in the form into a legible E-mail that
you can then follow-up with.

It can be intimidating to write a whole web site from scratch. But,

many times you already have
much of the copy sitting right in your office - brochures, pamphlets,
annual reptrts,-newsletters,
customer testimonials, etc.
Take these items to start organizing the pages and content.
Then, go back and fill in the holes with
new text' Keep in mind the web site should flow from page to page
with a consistent, easy.to-read
writing style.
While the graphics, music, animation and flying images all nice; rarely
do they communicate what
the web site is trying to say. People go to we-b m-ainly to get information, piices, f roouct specs,
phone numbers, maps _ content. "ites
wh.gn possible, it's great to link up to a database to provide your customers
with real-time access to
their personal information about orders, jobs in production, iccount balances,
etc. Another internet
service we can help you with.
We can definitely help you write some of the copy. We will sit down with you
and really try and get to
know your business in order to get the right conie nt on your site.
O What does your business do?
D What are the main products/services?
O What does the customer need to know?
O What questions would the customer have?
O Does your business have a color identity?
lf you're company is a propane company, then you might want dark
blues and light blues to look like
a propane flame. lf you're company is about gardening, you'llwant to use
a lot of greens and bright
colors.
What colors make sense for your business? We will build your web site using colors your
customers
can identify with.
Do you need special artwork drawn or created?
We can either convert existing graphics to GIF or JPEG al72 dpi. Or, we can draw
or create special
artwork that you don't currently have. lt costs extra but can have a very strong, supporting
visual
impact.
 GENERATING E.COMMERCE /1S3

Do you need photos scanned?

We scan slides, transparencies, photos, line art _ anything up to 1 1x17,,. We will convert these to
JPEG files at 72 dpi.

Besides using the internet as an advertising/brochure tool, it is also very powerful in its ability to
retrieve data out of databases. Whether it be account balances, order siatus, or simply finding
information from a search engine like Yahoo they all require data to be stored in databases. We
- NT and Linux (Unix)
have experience in building databases for both servers.
Once you've made these decisions, you are ready to develop your product catalog. you'll need to
provide necessary information on each product, such as description, color, size, Lnd price. This
catalog is expandable, so that you may add to it as your business and product offering grows.
After the product catalog is completed, your Web building vendor can publish your Web site online.

5.28.7 PaymentSolutions
ln order to become truly e-commerce enabled, you must have the following:
D Payment software
tr A merchant account
A Payment processing services
D A gateway to connect all these elements of the payment process.
You also will need cash register software to help easily calculate sales tax and shipping charges, and.
you may want to include a shopping cart function as well.
ln order to start transacting business and accepting payments, you must first open an account with
a merchant bank. Once you have established an account, your merchant bank retains the services
 184 / ELECTRONIC COMMERCE

of a payment processing company to "acquire" transactions of your

customers, secure the funds
from the customers'credit card issuer, and place that money
into your merchant account. This is the
last part of the payment solutions equation

5.28.8 Shopping Cart Software

Shopping cart software is an operating system that can be used to
allow people to purchase your
items, keep track of your accounls, and tie together all of the aspects
of your ecommerce site into
one cohesive whole.
while there are many other types of software that you can use in it's place, such
as catalog software.
or a flat order form, shopping cart software is the most popular and
the most widely known.
Many Online Transaction Providers will have shopping cart software
that comes with their service,
but it can often be very expensive, so be warned. if you cannot afford
to spend at least a couple of
hundred dollars on this software, you should b r looking for a package
that offers it as a rental
included in the monthly service charge, or one that offers a simpie flat order
form.
5.28.9 Getting aR lnternet |lerchant Bank Account
ln order to be able to accept credit cards over the internet, you must apply to your
bank for an
lnternet Merchant Bank Account. This can be reletively easy or somewhat oifficutt,
depencling on
which country you live in and what bank you are with.
U.S.A.:
ln the US, this is a fairly simple procedure. Many banks offer lnternet
Merchant Accounts, and most
online Transaction Providers will support them. see your bank for details.
lnternational:
Since the vast majority of Online Transaction Providers are located in the US and
are restricted in
their ability to interact with banks outside their own country, international merchants
have very litle
choice. An international merchant has to find a way to gei a US merchant account,
embark on the
equally difficult task of finding a local OnlineTransaction Provider, or utilise one of the
few companies
that services the international market. Also, many banks outside the US have very restrictive policies
regarding internet accounts. Luckily, the situation is improving, and most Online Transaction providers
will help you with this if you get in touch with them.
ln the ratings section, I have included information on which providers give internationalservice.
Here are some additional issues to keep in mind when you apply for a Merchant Bank
Account:
D A US merchant account can take up to a month to come through.
O lf you already have a merchant bank account, you will probably atso need to upgrade it to
an lnternet account.
Ensure that your bank accepts lnternet merchant accounts and has credit card processors
that can
connect to FDC, Paymentech or CyberCash.

5.28.t0 TrafficCoverage
"lf you build it they will come."
lf only it were that easy with e-tailing. However, no matter how great your Web site is, no one will
come to it if they don't know you are there. This is where driving traffic and transactions becomes an
essential element of your e-commerce plan.
 GENERATING E.COMMERCE / 1 85
The first step in building traffic is registering your site with search engines, Again, there are vendors
that will do this for you. For registration, you will need to think ol "meta tags" or keywords that will be
associated with your site.
ln addition, one old rule that still holds true in the virtual economy is "Location, location, location."
Much like putting your store in a real shopping mall, having your storefront in a shopping portal not
only gives higher visibility but helps draw in "window shoppers."
Another advantage of being a part of a virtual mall is the possibility of cross promotions with other e-
stores. You can establish relationships with sites that reach a similar demographic group and offer
premiums in exchange for links, referrals, and demographic information. For instance,,you and another
e-merchant could include taglines about each other's stores in your purchase confirmation
e-mails.

5.29 The Seven Deadly Sins of E-Commerce

The road to successful E-commerce can be iiddled with pitfalls. Armed with the proper knowledge,
you can avoid the costly mistakes that have put many online merchants out of business, even
before they really got siarted. ln this.article, the E-Commerce Times,identifies ihe seven main
stumbling blocks to E-commerce and offers easy solutions to ensure the survival of your crnline
I
store.
(1) Over-Engineering ,,, i

A common mistake is to attempt to develop a site that turns out to be too,complex to ever be
implemented. Often, well-intentioned projects never get off the ground due to unrealistic and convoluted
plans. ln many cases, the challenges created by new and unfamiliar technologies may be too great
to overcome initially, and the new online store can be greatly delayed or abandoned altogether, as
technical costs mount.
To avoid over-engineering your online store, start simply by identifying the most basic goals of your
online store and f irst implement those. When the basic system is in place, you can always add on all
the bells and whistles
(21 Biting off MoreThanYou Can Chew, ,

E-commerce can involve a highly complex combination ol equipment choices, Web site building and
hosting issues, as well as security and billirtg,technologies... And the list goes on. lt is easy to
attempt to resolve all these issues when seiting up shop, but the smarter strategy may be different.
lnstead of biting off more than anyone can chbw, we recommend choosing hosting services that
provide turnkey solutions.
For example, when starting, why not use a service like Yahoo! Store, which tal<es care of all the "big
decisions" and highly technical issues? lnstead of trying to become an expert in all thesd areas, let
Yahoo! Store, or any other high-qualitystcire-hosting service worry about fending off lnternet hackers,
as well as hardware and software issues that only the top computer networking gurus can handle. ln
this way, you can concentrate on selling your product while delegating much of the technical chores
to others.
(3) Forcing a Square Peg into a Round Hole
Just because a particular product sells well in retail stores, it is easy to think that it will, by necessity,
sell well online. Not so ... ln fact, many products cannot be sold easily over the lnternet because of
factors like high shipping costs, high product liability issues or the n€ed for personal salesmanship.
Before opening your online store to the public, evaluate your products' suitdbility for online sales.
l
 186 / ELECTRONIC COMMERCE
Ask yourself some questions like:
o would-your prices entice shoppers to purchase your product online rather than from retail
stores?
(41 Neglecting Security lssues
lnternet hackers have become a household wor

specialized security software. lf you are a beginn

seruice take care of security issues.
(5) "Going lt" Alone
E-commerce pioneers generally share an innovative and entrepreneurialspirit, which may
well be the
underlying secret of their success. However, when considering the vast complexity of E-commerce
issues, it would be a mistake not to outsource some of the E-commerce setup tasks as needed.
ln many cases, even when using a turnkey hosting service like Yahoo! Store or GeoShops,
many
new E-commerce stores never succeed due-to a of iack of professionaldesign and marketing
know-
how. Rather than undertaking a long and difficult process of planning, onty"to stumble
on the final
design and presentation of the store, consider retaining an E-commerce-ori-enred Web development
agency. Don't "go it" alone, if you have the option of having professional, experienced backup.
(6) Design Faux Pas
To run an online store, sophisticated tec or as it is
often termed, the "back-end." However, sees the
'Tront-end," i.e., what is displayed in the sh
designed
interface is needed. Without a professional, out, even
the most sophisticated back-end technologies wi
Likewise, cluttered Web pages that make it difficult to navigate your site or make it difficult for the
shopper to know how to place an order, can cause an online store to fail. lf you are serious about
building a successful E-commerce site, make sure that your site works to ybur advantage, rather
than a cause of lost sales opportunities.
(71 Neglecting theTelephone Number
It is a little-known fact that for many online stores the point of sale is not online, at all. Rather, a
typical scenario might be that the shopper browses through the site, researches and compares
values, but then f inally places the actual purchase order over the phone. Yet many sites fail to make
a phone number available for ordering.
To respond to shoppers'preferences, a phone number should be listed prominently on every page of
the site.
By nature, the lnternet is a global medium and a toll-free telephone number would be highly
recommendeded. lt helps convey to the shopper you are a reliable source, and helps boost confidence
that you will be there to provide customer service, if necessary.

5.30 E-Commerce Software Example

How do you like to shop? Do you take all day and browse around until something catches your eye?
Or do you march right up to the clerk and say, "l need a cheap widget with a whoziwhatzit. Got one?"
 GENERATING E.COMMERCE / 187

It probably depends on what you're looking for, right? I rarely find myself wandering through an auto
supply store, trying out different spark plugs and seeing which ones strike my fancy. And only once
or twice have I gone to the checkout stand at Safeway and said, "l'm looking for a brownish butter-
like substance made out of peanuts - perhaps something I could spread on bread with jelly. You got
any of that?"
See, the product that you're seeking often defines how you shop for it. This is an important concept
to remember when creating your online presence. What exactly is your product? Who is your target
audience? How will they want to interact with your company, and how can your site enhance this
interaction?
Many Web-based stores allow you to search through their stock by category or by keyword' These
methods are, for the most part, derivatives of the technologies that make the soltware work; databases
and file systems are quite effective at categorizing things. But are the customers at your site going
to find shopping by category intuitive? ls that the best approach for you?
Let's take a look at the different kinds of products that are out there and how actual companies are
custom-fitting their Web sites for maximum effectiveness.

5.30.1 Getting Started

Say you're working for Computer Chip Corporation, the world's leading supplier of computer memory
prodlcts.Your CEb is catching up on the past several months of business journals, when the light
bulb switches on. Those screaming headlines just can't be ignored: "Consumer E-Commerce Will
Jump to $26 Billion by 2OO2" and "U.S. On-line Business Trade Will Soar To $1 .3 Trillion By 2006J'
More important, the competition is rumored to be working on its own e-business plan. So the big
boss meets with the board of directors, and after a long, heated debate, they callyou in to tellyou
they want to open CCC's cyberdoors in (gulp!) six weeks.That should be plenty of time, they insist.
After all, the CEO's daughier (a sophomore at Berkeley) built her own online store in a mere three
weeks, so she's selling enough Beanie Babies to put herself through college. "Surely we can sell our
RAM computer memory chips for less? You know, direct to the customer?" the board chimes in unison.
Don't panic. Six weeks may sound a bit tight, but it's still not a hellish 24-hour turnarbund. With the
right planning and a little luck, you just might make it. So calmly say, "l'll get right on it," and then
irimediately iegister the domain name ramforless.com with lnternic. (Actually, you'll have to come
up with your own name since ramforless.com has already been grabbed for the purposes of this
tutorial.)That done, take a deep breath and then read the rest of this tutorial in its entirety. By looking
before leaping, you'll learn about allthe e-commerce gotchas that can hit you unexpectedly' Planning
ahead witi noi only save you quite a bit of redevelopment time down the road, it will also help you
make educated decisions as you choose the right e-business solution for your company.

5.30.2 Adding Value

ln addition to the methods described on the preceding page, a number of companies have taken
advantage of new technologies to deliver even better service and environments to their customers.
These aien't storefront solutions in and of themselves, but they can work as excellent supplements
to other systems.
magically
Brightware uses its 20 years of artificial intelligence knowledge to interpret natural language,
allJwing its system to answer customer questions. Brightware claims that, with some training, its
reply to 80 percent of common seruice and sales inquiries, regardless of
system-can automatically
Brightware can then route the remainder of the questions to your
hbw the questions are p-hrased.
customer service department for answering.
 1 88 / ELECTRONIC COMMERCE

This technology has also been used by financial, mortgage, and health care companies
to determine
their customers' needs and then actively recommend i piepareo solution. s"v gooJbv"
Ln"" and for
all to door-to-door insurance salesmen.

of collaborative filtering, an automated merchandising

omers with similar purchasing histories. Say a customer
nture reading and buys 20,OOO Leagues UnderThe Sea
buys Moby Dick and The Hunt for Red October. These
nformation and recommend The Hunt for Red October to
the first customer and 20,OOO Leagues Under the Sea to the other customer. By using
this system,
you're basically letting your customers with similar interests make recommendations
to each other.
And the more they buy, the more accurate the recommendations will become. pretty
cool, eh?
dd value to your site and stand out in a possibly
and whistles, you may want to begin simply and
front line knows a lot about what your customers
icate with them. Find out what your sales team is
. see how this method worked for ramforless.com.
5.50.5 Transactions
So your custome;'s have shopping carts fullof your widgets. Congratulations! But don,t
start counting
your chickens:You still have some work to do befo'e you make those sales.You
can't send customers
their products until you calculate the bottom lines. And more importantly, you still need to determine
whether they have the funds to pay for their purchases. So before you accept those orders, you'll
need to calculate tax, determine shipping costs, and securely process the customers, preferred
methods of payment.
The good news is that a number'of software companies have been hard at work over the past few
years, making thig part of the process as painless as possible. The bad news is that it
may not be as
plug-and-play as you had hoped. .
The key is to {igure out which solutions work well with your company and your customeis and are
also compatible with whatever e-commerce package or tommon application programming language
you'll be choosing in Lesson 4. Since you may have to make some compromises with either
the e-
commerce package or the plug-in software solutions, your best bet is to examine all the options
outlined in this lesson and Lesson 4 befdre unwrapping the cellophane on any software.
Let's get started with a look at the dreaded taxes.

5.50.4 Don-t ).less with Taxes

ln California, certain "necessities" like food are generally not subject to tax. Clothing, on the other
hand, is' lf you'ne doing business in New Jersey, however, and you're shipping a piir of designer
jeans to the UpperWest Side, then there's no tax - in New Jersey, clothing is conlidered
a neceisity
and therefore is not subject to tax. Keeping track of these rules andlxceptions is an ongoing
challenge. But wait, thprels more. you stili have to figure out how much to cna?ge.
- -'
There are hundreds of different sales-tax rates within California alone. First you have state tax.
Different counties also have additional rates. And then some cities add a perceni or so on top of that!
ln San Franclsco, sales tax is 8.5 percent. Drive across the Golden Gate Bridge to Marin and its 7.25
percent' Aorc,s the Bay Bridge in Berkeley it's 8.25 percent. And each state is different.
lf you're doing business internationally, things are further complicated by tariffs, customs fees, and
 GENERATING E.COMMERCE / 1 89
other potential charges. Did you know that in one part of Canada, even tax is taxed? This must be
where the people who fled Boston after the Tea Party settled.
Besides dealing with wildly varying tax rates, you also have a little thing called nexus to contend
with. Nexus is a legalterm meaning roughly, "where you have a presence doing business." ln the
United States, you are obligated to collect, report, and pay sales tax in states where you have a
nexus. The important thing is that nexus is a legal term, so you should seek the advice of your tax
attorney on this issue.
You should also work with your attorney to develop a tax policy. Of course, you can always do what
Apple did when it launched its first online store: Just say, "Applicable sales tax will be added to your
orde/'and then let someone else, usually a lulfillment center, figure it out for you using its preexisting
taxing systems. But to make sure your customers can pay the full amount of the orders before you
process them, you'll need to calculate the tax yourself. There are several packages and services
that automate your tax calculations.
Taxware offers tax calculations for domestic and internationaljurisdictions either over the lnternet or
as an independent software module.
CyberSource integrates tax and other transaction features on an on-demand service-bureau basis,
meaning that you tap into its software via the lnternet rather than installing the software on your own
system.
Both of these solutions have advantages and disadvantages, and they're always being improved
upon and updated. So you'll need to do a bit of research on which option is the best fit for your e-
business. Check out theirWeb sites for the features they offer and the e-commerce systems (covered
in Lesson 4) they're compatible with. See whether their clients offer products or services similar to
yours. You may even want to send an email to people at the companies that use these solutions to
inquire about how satisfied they are with the products.
However you decide to deal with the tax hurdle, your next challenge is to figure out how to get your
product to your customer and what to charge for the service.

5.50.5 Shaping Up and Shipping Out

One of the most important things to remember about shipping is that the cost of sending your
product isn't necessarily the amount you'll want to charge your customer.Your actual costs may be
more related to delivering convenient customer service.
For example, Naturalfoods.com offers lree shipping on orders above a certain dollar amount as a
tactic to increase the average size of orders.Yet other online grocers, such as Peapod, charge extra
for the convenience of door-to-door delivery.
Many online merchants have adopted the best practices of the direct-mail catalog industry by charging
fixed amounts for shipping and handling based upon the dollar size of the order and limiting customers'
speed-of-delivery options to regular, faster, and fastest.
Which tactic should you use? Again, you'll have to research the approach that will work best with
yaur customers.There are several packages and services you can review to help you decide-
Tandata otfers shipping calculations based upon the shipping tables updated by major parcel services'
And its Progistics Merchant product can be used with a variety of e-commerce systems.
UPS and FedEx have opened up their interfaces to developers via the lnternet, and off-the-shelf
storefront packages are available as ready-made plug-ins to these services. (Check out each service's
Web site io teain more.) This means you can get real-time pricing as well as shipment tracking
numbers for each order.
190 / ELECTRONIC COMMERCE

Another important thing to remember is that shipping costs vary by weight. lf you're selling more
than one product, you must find a way to provide weight information about each product for whatever
shipping solution the customers choose. So be sure your product database has a place to store a
weight value.
You'll also need to provide the addresses the parcel is shipped from and shipped to. Make sure you
let your customers know when P.O. boxes are going to be an issue, and don't forget to ask for their
desired speed of the delivery. Your customers will appreciate that!

5.50.5 Back to Ramforless.com

The requirements for ramforless.com are pretty simple. Luckily, you decided to re-key the orders into
the old-school mainframe system, which already calculated tax, added shipping charges, and checked
credit cards. To keep your customers happy, however, you want to let them know exactly hcw much
will be charged to their card.That means figuring out how to get the tax and shipping totals out of the
creaky old mainframe and display them in real-time on the Web.
To make things more confusing, even though the Computer Chip Corporation is headquartered in
Silicon Valley, the company has manufacturing facilities in California, NewYork, and lowa, which is
where the chips are stored and shipped f iom. Terry, the tax attorney, says you'll have to collect and
pay taxes on any orders shipped to those states, regardless of where you're shipping from.
On the shipping and handling end of things, Frank in fulfillment wants to charge handling fees in
addition to shipping costs. So he recommends that you keep things nice and simple with a flatJee
charge on orders with a certain number of items that need to be packed and shipped. Extra charges
would be added for express shipping: Shipping and Handling Charges

Fast Faster Fastest

1 to 4 chips 5.00 8.00 20.00
5 to 8 chips 10.00 14.00 26.00
9+ chips 1s.00 18.00 32.00
Amy in accounting says that she can handle debiting the credit cards through her existing system,
but you still need to find a way to make sure the credit card numbers coming in are secure and
authentic.
So you have a variety of business rules to implement. Taxes need to be automated, shipping is
totally custom-built, and credit cards only need to be partially processed. And you need to find a way
to bring it all together. Most importantly, you need to do it for less than the reported $100 million that
Barnes & Noble is putting into its Web site.
So you're in for a bit more work than simply opening up the latest e-commerce-in-a-box solution.You
need to do additional research and then decide whether you should build, rent, or buy an e-commerce
solution. Don't fret, though. l'll walk you through all of these options in Lesson 4. Soon enough, you'll
be up and running.

5.5;0.7 SelectingE-commercePackage
You've waded through your requirements fortaxes, payment, security, and shipping.You've established
how your site will have to work in order to please everybody, f rom the CEO to the legal department to
the design team to the customers. You finally have a clear idea of what needs to be built and have
determined what software plug-ins (Taxware, Tandata, etc.) best meet your requirements. Now you're
ready to shop around for an e-commerce package to juggle all of this for you.
 GENERATING E.COMMERCE / 1 91
ldeally, you'll find an e-commerce package that's compatible with the tax, payment, security, and
shipping solutions you've decided to use. But you may not be so lucky. ln that case, it would
probably be a good idea to take all of your various requirements for the operation of your site and
rank them.What's the most important feature? What features could be compromised? Does the site
have to automatically calculate state tax on the fly or can you get away with just saying "applicable
state tax will be added"? You don't want to skimp on anything, of course, but you should know where.
you have room to manuever. That way, if you find a solution that meets all but one of your needs,
you'll know if you can live with it or if you'll have to go with your second choice.This kind of planning
and flexibility will keep the potentially tricky experience of finding the perfect e-business solution as
simple as possible.
So grab that inch{hick stack of e-commerce advertisements that have been cluttering up your desk
for months. Look at those catchy slogans: "E-commerce in a box!" "lnstant storefront!" "Try it; yott'll
like it!"Yikes! ls this software or a new kind of breakfast cereal that works with that other breakfast
technology? Let's cut through the hype and break it down real simplelike.
Basically, you have three options:
D Buy a ready-made solution.
O Rent space in a network-based e-commerce solution.
O Build the system from scratch with components and parts.
It's sort of like buying a car. You could buy a new one and, depending on your budget, get some
additionaloptions configured the way you like. But it could get outdated eventually, and you'd have to
drop more cash for another one. Or you could lease one for a few years, but then you couldn't paint
flames on the side since you don't own it. Or if you really wanted to, you could build your own dream
hot rod, but you'd better be a good mechanic to get that fuel-injected machine to run smoothly.
Let's take a closer look at your options and figure out which will work best for you.

5.30.8 Buy, Lease, or Build?

Option 1 Buy a ready-made system that closely matches your specifications'
This approach will give you a standardized set of e-commerce features with a few additional business
rules built in as a bonus (like the options on a new car). lf your business needs closely match what
the package offers, buy it!This will save you money and a good deal of time. lf the system is lacking
some of your prioritized features, however, you may want to think again. The solution may be a good
fit right now, but will likely become obsolete as more and more features become necessary later on
in development. Trying to add these new features may mean custom work and training in the software
down the road. Be sure to budget for this ahead of time, if you're considering this option.
Also count on shelling out additional bucks if you want to automate payments, tax, and shipping.
You'll need to buy additional products and get them installed, conligured, and integrated. Luckily, it's
fairly easy to install plug-ins into most of these types of systems. Ready-made interfaces are often
included for payment, tax, and shipping applications such as CyberCash, Verifone, Tandata, and
others. But always be sure to confirm that your required programs are supported. Again, ranking your
features beforehand will help you at this stage.
Solutions to review
Take a look at lntershop 6.0, iCat Pro, and IBM Net.Commerce for starters.
Option 2 Rent space in a network-based, e-commerce solution.
 192 / ELECTRONIC COMMERCE

These solutions are frequently inexpensive and include

many common features.They,re fast because

Ii":i":"":llj:,': ::T,:':SI*I::gltl: yeb:y;,oon;i;; i; instal any sortware;you just pick

some serting., pour in your product inro'."'"ifl.iilil;r1;'#":fi:UX
ill?:fi...:ljf;? "ni
and feel that you want.
on and configuring, but
great if there's a good
ll end up frustrated and

A Solutions to review
Try lntershop ePages, icat commerce online, andYahoo
store for some plug-and-play examples.
option 3 Build the system from scratch to your specifications.
need but will require expertise, time, and a sizable
n build the features and functions you need to be
you want to offer discounts every second Tuesday

There are a series of application engines out there to help you

get these features, but you can create
acommerce program
business interfaces
were created in perl
Microsoft's Active
Server Pages anO nt
sic has rereased a
new pratform based'
ctive Server Page
technology.
When taking this path, you'll need to design databases from
scratch and then integrate tax, shipping,
and payment processing software modules with the maln application.
ASp and coldFusion have
third-party sorutions to herp you streamrine your transaction
that you're comfortabre deveroping apprications on this rever.
rf
merce systems developer (like, ahem, eMergingMedia)
to help

O Solutions to review
Check out Allaire coldFusion, lntershop Enterprise Edition, Microsoft
Site server commerce Edition,
and Pandesic 6.0.

5.30.9 Chart Your Course

when evaluating these various solutions, you should not only considerthe
cost
much it will cost to customize it to suit your individual needs. 6ften
what looks lik
at the outset can end up eating away at your budget as you
try to add new featu
This diagram surveys the solutions we've mentioned so far, charting
them according to initial cost
versus the additional expense of customizing them. Those products
in red are the standardized off-
the-shelf solutions, those in green are the rented Web-based solutions,
and those in blue are the
commercial application platforms for building your own system.
d icat commerce onrine are fairry cheap to get going, there's
m to work and rook the way you want. Meanwhire, something
penny upfront, is customizabre enough so that hidden chargei
 GENERATING E.COMMERCE /193
5,50.10 Ramforless.Gon[ Buildin'lt 5o They-ll Come
Using your handy Requirements Document, you search high and low for an off-the-shelf package'
that can meet ramforless.com's needs. But one thing is missing, a critical, top-priority feature that
you gotta have: the configurator. This is the gizmo that will figure out what type of RAM chips your
customers need once they plug in the kind of systems they have. No system has a configurator as
part of its standard features, and you can't go forward without it. So like it or not, it seems that
building an application from scratch is going to be the best way to go.

5.51 Cold Fusion : The Basic Software for e.Comerce Applications

You talk to the MIS people about the technology they originally used to create the configurator. lt
turns out that all of the configurator information is stored on a SQL Server 6.5 database. You dig
through your notes and discover that Allaire ColdFusion can pull data f rom any ODBC data source.
That's a big plus, but you need to see how ColdFusion addresses your other requirements.
O Displaying Products
Denise's design and Mark's configurator give you the information you need to drive the front-end
experience. ColdFusion's ability to pull data means that you can leverage Mark's past work with
Microsoft's SQL Server. And because you can easily place ColdFusion CFML tags between HTML
tags, you can make the pages look exactly the way Denise wants.
O Order andTransaction Processing
ColdFusion does not come with a shopping cart, but the ColdFusion guidebook you bought has some
shopping cart examples in it. Meanwhile, payments can be handled through ColdFusion's ready-
made interface with CyberCash, and taxes can be handled with its intedace with Taxware.You'll have
to come up with your own shipping algorithm, but with ColdFusion's extensive application language,
that shouldn't be too big a deal.
O Attracting Customers
You shouldn't use ColdFusion to place your advertisements;there are other productsout there that
do a better job of this. But you can use it to track people's responses to your ads. You can embed
media codes in each ad and then use ColdFusion's application language to detect the incoming
source codes and add them to customers'histories or even to the orders they place.This rireans that
you can tie the source codes to the sales they generate and figure out which ads are actually making
you money. (More about this can be' found in Lesson 5.)
O Fulfillment and Customer Service
You don't want to build a new fulfillment system:The one you have now works well enough. lt runs on
that mainframe from the'7(js, and you don't want to get bogged down with that thing. For now, the
fulfillment department will have to reenter orders manually and handle customer inquiries about
orders through the company's 800 number. lt's not the slickest plan, but it'll work for now, and
ColdFusion is flexible enough to accommodate improvements in the future.
D Software and Hosting
There are a bunch of toptier hosting services that support dedicated NT hosting environments and
also offer leased line access. ColdFusion works great with NT, but it's also availade for Solaris if you
decide to change over to a Unix OS at some point. lf you needed to scale, you could set up a single
Unix database server that feeds a series of NT application servers. That way, you could add additional
application servers and not worry so much about data replication.
 1 94 / ELECTRONIC COMMERCE

Allaire's coldFusion application engine seems to be a solid

match. you can set up the configurator
y'.t19't too many headaches, and it supports most of the extensions you need. With Frank
fulfillment's "flat-rate" scheme , your shipping and handling is in
covered - tor tne time being, at teastl
You're saving the creation of a more flexible aid customizaoie
snrpping solution forthe next redesign.
So you're set' All the planning ald research has finally paid off,
and you now have a solution that
meets your needs with minimal compromise. The site's going
to iake some significant work upf ront,
but you'll be happy in the long run when it continues to dJ all
in"i vo, require, even as your company
grows and evolves.
Some time later, after the application of a lot of elbow grease, your
site goes live. The industry is
abuzz, customers roll in, everyone gets a raise, rnd you-take oti
tora well-deserved vacation.
bratty
Not so fast. lt ain't that simple. Like a rce site requires
ln order to attract customers and keep them need to have an
strategy and be able to monitor which advertisi are successful.
learn what you need to know about tracking your get your busines
crowd.

5.31.1 Building Your Customer Base

So your online store is finally up and running. Good work! Unleash the
confetti and champagne corks
- you deserve it' But once you're finished celebrating, there's
still work to be done. Now you need to
get your customers to actually visit the site.
lf your company is willing to spend the big bucks, you can get the
word out about your site by using
traditionaladvertising venues, such as billboards, bus ads, direct mail, radio
spots,'or even television
commercials. You can also place banner ads on other Web sites that cater
to'youi customer base. lf
money's an issue (as it so often is), there are ways to drum up Web
traffic on the cheap. Some of
these advertising techniques will work better than others, depending on what you,re
selling and to
whom.
How do you know if your advertisements and marketing
oney)?
To be truly effective, your advertising needs to do mo
site: lt
needs to attract customers who buy your products. To
ics are
working and which aren't, take a look at your log files.

5.51.2 RequirementsDocument
Back at Computer Chip Corp., your CEo decides that it's better (read: more
realistic) to have the lirst
version of the project concentrate on building up the company's online customer
base via the promotion
of the wwwramforless'com service.Then once a minimum monthly order volume
is sustained, the
company will commit to putting resources toward automating the back office and
fulfillment systems.
"Until then, we'll just re-key orders," the employees are told. The f ulfillment
manager's eyes get large
and he jots down a note to open several new data entry job requisitions. And youi you just
breathe a
sigh of relief, because, for now, you don't have to tap into that 1970s mainframe monster
that
handles all of the current order entry and fulfillment processes.
The firm wants customers to be able to tell us what kind of computer equipment they have.
Then we'll
tellthem what kind of memory chips work with their computers. lf we know the mike and model
of
their equipment, then we can recommend chips in 8-MB, 16-MB, 32-MB, and 64-MB flavors.
Sophisticated customers may already know the model number of the memory chip they want,
but
these products are changing all the time. We'll need a tool where we can make changes to the
products we offer in realtime.
 GENERATING E-COMMERCE / 195
5.51.3 Order and Transaction Processing
Customers will want to buy more than one item at a time, so we'll need to let them build an order
before checking out. Then we'll need to accept major credit cards and calculate tax, shipping, and
handling charges. Plus, we'll be shipping within 24 hours of the order, so we'll need to verify the credit
card information before we accept the order.

5.31.4 Attracting Customers

We want to use a variety of lead-generating tactics, such as buying banner ads, register:ing with
search engines, and sending direct emailto get qualified customers to the site. We'll also want to
know which of these tactics gets the most customers to our site so that we can figure out which
advertising investments make the most sense.

5.51.5 Fulfillment and Customer Service

Orders that arrive on the server need to be relayed to the fulfillment center quickly so that we can
pick, pack, and ship the memory chips before the FedEx truck shows up at 5 p.m. We also want to
be able to let customers get the status of their orders so that they don't have to call us.

5.51.5 Software and Hosting

We want to host the site with a third party. Staying up 2417 monitoring servers is not our idea of fun.
We've seen a number of e-commerce software packages on the market but are confused about
which one is right for us. Help!
Once you've generated your own Requirements Document, you still have a lot of details to iron out,
and there are many choices still lo be made before you can open your doors in cyberspace. ln the
next lesson, we'lltackle the challenge of designing an effective sales and merchandising environment.
Then we'lltake a look at some existing sites that use these techniques.

5.11.7 Use Those log Files

Log files can give you valuable information aboutthe shopping and surfing patterns of yourcustomers,
telling you how they found your site, which pages they visited, and who bought wllat. With careful
tracking of the data generated by your log files (especjally over the long{erm), you can figure out
which advertising and marketing tactics are the most successful with your customers. lnformation
like this is valuable because it can tell you where to reinvest and how to change your media-investing
tactics based upon what's performing and what's not.
One popular way to determine what marketing leads customers to buy your products is to track the
sources of your sales leads all the way through to the order. Direct marketers have been doing this
for years, long before the Web came into being. You'll find source codes on almost everything they
send out: postcards, coupons, the backs of the glossy catalogs, and that "address your letter to
department ZX321"thing they do. By assigning a unique code to each coupon or postcard, marketers
can keep track of which placement yielded the most customer interest. ("The coupons we ran in
Young Miss did much better than those in Concrete Monthlyl')
You can do the same thing on your site. lf you know the source of the lead, the customer-who
responded, and the orders that customer placed, then you have a gold mine of data with which to
determine your ROI (return on investment). More important, you can improve upon it by fine-tuning'
both your marketing and site design.
Do users stop clicking once they hit a certain page? Perhaps that page needs to be simplified,
rewritten, or even repositioned to make it easier for your customers to get to the key part ol your site:
the bottom line.
 196 / ELECTRONIC COMMERCE

T9lake sure you're using the most

which ads are generating the most
that your direct-mail cAmnainn
ca.mpaign isic
anything' At the same time, J banne. -,,,,e,,,v q''trrus ur vrsrrors Io.your site, but they,re not buying
your site via the banner ad tend to
iJ ir"v attract only a few visitors, but those that do come
make purchases. Wni.n torm of marketing to
To find out, take a closer root is the most cost-
much money yori.it",. mar<injario no*-rnu"n
3ffi1[T "ihJ* you,re

5.31.8 Cost-EffectiveAdvertising
important, bur hey, the site is onrv three pages
ffiffiffTl:X: "r" rong! Let,s focus on rear

O Number of
O Number of
0 Numberof
D Cost of dis
With this information you can determine:

I Cost of generating a lead for each inquiry source

A Cost of sales for each inquiry source

lf we e for the nexl release of the site, we'll be

what company's investment in e-commerce and online
able to show the top brass
then for the project next year.
marketing. And
o Mark
running your
reports' showing you how
your site du
lymakemonneedtofigureoutwhich
ow it rooks
" [ffjli:1,::i:'$T::lT;
5.31.9 lleeping Track of Everything
To track yourcustomers' you need to assign each.banner ad a
specific code and use that code in the
referring URL that rinks your site to the ai. The
uRL in the rink rooks rike this:
http : / /www. ramforless . con/index. cfm?MC=ytMO01

customer places an order, that code is attached

unique media codes just like this in banner advert
At ramforless'com, all of the information about customers,
orders, and advertisements is stored in a
 GENERATING E.COMMERCE / 197

single database designed to make it easy to report on different data that management wants to
track.
Table 5.1 "Cost of Sales" RePort

Sources Sales Cost Sales/$1 Cost 7o of Sales

111111 2,176 1,000 2.18 45.96 %
2222?2 2,046 1,000 2.O5 48.88o/"
333333 3,160 1,000 6.16 31.65 %
444444 10,690 1,000 10.69 9.35 %
555555 3,150 1,000 6.15 31.751o
WMOOl 2,934 1,000 2.93 34.08o/"
direct 18,238 1,000 18.24 5.48"/"

This report shows total sales for orders placed as a result ol sources linked to specific media codes
(111111 ,222222,WM001, etc.). Note that "Cost" refers to the amount of money (in dollars) it takes
io place a banner ad, email, etc. "Sales/$1 Cost" is the Sales number divided by the Cost. This tells
you how much revenue was generated for each dollar invested in a specific venue with a specific
advertisemenl."o/o ol Sales" is the inverse of the Sales/$1 Cost; essentially it's a summary of cost-
effectiveness expressed as a percentage'
So for every dollar earned in sales from ad "1 1 1 1 1;'45.96 cents went toward the placement of the ad.
lf your cosiof sales is 45.96 percent, you'll probably have a hard time staying in business. On the
other hand, advertiseme nl"44444" had a cost of sales of 9.35 percent of the revenue it generated.
You can probably make a good profit continuing to advertise through that venue.
you can also track customers that come directly to the site without the help of any specific ad' ln this
example, the media code "direct" shows that word of mouth is stillthe best resource for
generating
low-cost sales.
But that doesn,t mean you should abandon all advertising and rely solely on word of mouth
to keep
your online business thriving. One fatal flaw of using log liles to track user activity js that they make
no allowances for customers who follow an ad sir ply to learn about your products and then, after
will
doing some comparison shopping, return to your site to make a purchase. The tracking system
adverlising failure and a word-of-mouth victory, and that's just not ihe
,"poit this scenario as an
most cost-
case. When it comes to site promotion, things usually aren't all or nothing. Usually, the
effective marketing for your site involves finding the right combination of a variety of advertising
methods.

5.51.10 Staying in E-Business

To find the most cost-effective marketing for your site, experiment with
your advertising while keeping
a sharp eye on your sales.Try new things: lmplement innovative banner ads, play around with things.
like afiiliaie maiketing, consider sponsorships - and see how your sales are affected.
grow and change to
And keep at it.your online storefront, like your business itself, must continue to
accommodate the evolution of your customers and products'
much
This flexibility is key to keeping your e-business viable. Even if your products don't change
quick and
you
over the years, and update your online presence. The
natu
ever-changing but it can also bring customers, connections, and
opportunitiesthatn eotherwise'
 198 / ELECTRONIC COMMERCE

As you set out to create your own e-commerce site, keep in mind all that we've discussed
here. With
planning, hard work, and carefulobservation, you can build a site that's flexible
enough to keep up
with the ever-changing needs of your customers. And then you'll really be in e-busine-ss.

5.51.1I Play by the "Business Rules- Document

At your D-Day, talk through all the steps that come before and after a transaction. Gather ideas.
Discuss constraints and get the raw information you'll need to develop your e-business plan.
To help keep the ideas flowing and your brain-storming on track, we've created a Business Rules
document for you to use as you meet with your team.This isn't a check list - it's simply a compilation
of the e-business issues that you should consider as you carefully lay plans for your e-commerce
site. Print it out, put it on the OHP (overhead projector), stick it on the white board, and then use it to
generate new ideas and spark innovations of your own.
After you have all the raw information you need, it's time to prioritize. lt is not likely that you'll be able
to implement all the things you want in the first release of the store because of constraints in budget
or time or because you're the only person working on this project and you haven't slept for three
days. Rank each of the features you want with a one for "must have," a two for "nice to have," and a
three for "pipe dream." With your priorities in line, you can create your Requirements Document.

5.31.12 The ).lany Ways to Skin a Cat

Before you can select the right setup for your e-business, you must determine exactly what you need
to be competitive online.
Most likely, you'll need some software to help you manage your products, your promotions, your
customers, and their orders.You may also need some additional programs to handle the tax, shipping,
and payment processing of your orders.
A number of popular off-the-shelf solutions have evolved overthe past few years that give you these
core features and allow you to plug-in other software modules to handle the complexities of taxation,
the varieties of shipping options, and many of the popular forms of payment. Each option'offers its
own set of pros and cons.
Solutions like lntershop's ePages, iOat's Lemonade Stand, orYahoo's Stores provide storefronts that
are ready to go. Just pick a design and pop in your products:You are ready for business.
Other applications, such as lntershop 6.0 and iOat Professional, allow you to change standard
templates that come with the packaged software so that you can customize the way your storelront
will look and feel. These solutions also let you extend the standard features and behaviors contained
in the templates - assuming you can "speak" their application languages.
And then there are solutions that act more like e-commerce application platforms. These include
Microsoft's Site Server Enterprise, which relies on Microsoft's ASP (active server page) technology;
Allaire's ColdFusion application engine and its popular CFML (ColdFusion markup language); IBM;s
Net.Commerce solution;and Pandesic's new 6.0 product release, which provides robust backend e-
business processes that can be accessed through a standardized application interface.
Many of the above solutions rely on other e-commerce software f rom CyberOash or OpenMarket for
payment processing, Taxware for tax calculations, and Tandata for: up-to-date shipping information.
But which is the right solution for your e-business? To figure that out, you need a plan.
 GENERATING E.COMMERCE / 199

5.12 Add Context.Sensitive Help to Your lE Applications

Many Web developers build lnternet Explorer (lE) applications that can be improved by adding context-
."n.itiue help. Context-sensitive help can be added to these applications using standard Windows
functionality. Many developers don't know that they can easily use the "What's This" functionality
that is built into Windows in their own lE applications.
helpl.bmP = helPl.htn help2.bmp = heIP6.bnP
This 1O-Minute Solution consists'of two separate HTML files (help1'htm and MainPage'htm). The
(MainPage.htm)'
first file (helpl.htm) is the main document.You will use it to callthe second document
you coutd put the code that calls the second document anywhere, but by putting it in the main body
you open or ref resh
of the page, it will run whenever the document loads. This means that whenever
open. Notice that the showModalDialog function is
this page-, the second page will automatically
purposes, the most important of these parameters is the
called with a number of pa-rameters. For our
,,help,, parameter. This parameter tells the diaiog box to display the "help" button on the title bar
beside the "close" button.
<HTML>
<HEAD>
<TITLE>user HeIPcl tf tr,s>
</HEAD>
<BODY onload=rrOpenMainPage ( ) tr)

</BoDY>
</HTML>

<SCRIPT LAIIGUAGE= j avascriPt)

function OPenMainPage o
t
showModalDialog ( t'MainPage . htm'r , ItMyMainPager' ,
,,dialogpidth=62Opx;dia1ogftIeight=3lOpx;centery'es,'borde:thin,'hel;=yesr') ;
event . cancelBubble=true,'
)
</scnrpt>

Mainpage. htn

<IITML>
<HEAD>
<MErA name=Vl 5O_defaultclientscript content=vBScript>
<TTTLE>Main Page</TTTLE>
</HUAD>
<BODY id=MyDocuuentBody style=TTBACKGROUND-COLOR:
silver,' FONT-
FAI'iILY: Aria].rt)
<SPAN style=!'LEFT: 5Opx,' POSITION: absolute" TOP: 1opx"
name=|,IntroText||id=IntroTexttitle=''Introductionlext|')
2OO / ELECTRONIC COMMERCE
click the help (Question Mark) button in the upper-right corner of this window then click on any.
element in the client area of this window to see context-sensitive help for that item.
</spax>
<P>
<rNPur style='TLEFT: 5Opx,. posrrroN: absolute," Top: 10opx',
titl.=""lick Me !'r type=rrcheckboxrt id=checkboxl name=checkboxl)
<f NPUT style=,'LEFT: 5opx; pOSITION: absolute,. TOp: 15Opx,,
titla=ttBnter your name herer id=textl nane=textl)
<INPUT style="LEFT : 5Opx,. pOSITION: absolute ,. TOp : 2OOpx,,
type=trbuttonrr warue=rrclosetr id=buttonl name=buttonl)
<P>
</BoDy>
</srvr>
<scRrPT rD=crientEventHandlersVBs LANGUAGE=vbscript)
Sub document_onhelp
ErrorMsg, = 'rNo infornation available for that itemrr
TextboxMsg = ItEnter your name hererr
ButtonMs€t = "CJ-ick here to close this windowfl
BodyMsg = t'Yes, even the body of this page can have herp text.rt
rntroTextMsg = 'rrhis is the description of what to do on the
Page. close this diarogr box and crick on sonething else. r'
CheckboxMsg' = 'rClick me (just for example) "

SourcefD = window.event. srcElenent.id

HelPMsg = SourcelD
Select Case UCase (SourcefD)
Case "CHECKBOXIw
HelPMsg = CheckboxMsg
Case I'INTROTEXTil
HeIPMsg = IntroTextMsg
Case I'MYDOCUMENTBODY'r
HelPMsg = BodyMsg
Case rrTEXTl rt
HeIPMsg = TextboxMsg
Case 'IBUTTONI t'
HelPMsg = ButtonMsg
Case EIse
tlelPMsg = ErrorMsg
End Select
Msgbox HelpMsg, vblnformation, ilyou! Help is Hererl
window. event. cancelBubble=true
End Sub
Sub buttonl onelick
 GENERATING E.COMMERCE / 201

window. close
End Sub

</scRrPt>
After the document is open, you will provide context-sensitive help through the onhelp event. The
following code shows how you would detect which object was clicked, and how to react, based on
that action. Note that an important line sets the value ol SourcelD equal to the id property of the
page was
srcElement.You use a switch statement with this value to determine which element on the
case' you
selected. You'll take different actions based upon the element that was selected' ln this
message box.
simply set the value of the variable to a different text string and display that string in a
Sub document onhelP
ErrorMsg = I'No information available for that iteu'rl
TextboxMsg = rrEnter your name trere ' tl
ButtonMs€t = trClick here to close this window'rl
BodyMsg=ltYes,eventhebodyofthisPagecanhave}relptext.ll
IntroTextMsg = rtThis is the description of what to rr E
-
"do on the page. Close this dialog box and 'r 6 -
trclick on sornething else' rr
CheckboxMsg = "Click me (just for examPle) ' "

SourcelD = window.event'srcElement'id
HelpMsg = SourcelD
Select Case UCase (SourcelD)
Case !TCHECKBOX1 I'
HeIpMsg = CheckboxMsg
Case 'TINTROTEXTTT
HelpMsg = IntroTextMsg
Case'IMYDOCUMENTBODYTI
HelPMsg = BodYMsg
Case ttTEXTlrr
HelpMsg = TextboxMsg
Case 'IBUTTONI t'
HeIPMsg = ButtonMsg
Case Else
HeIPMsg = ErrorMsg
End Se]-ect
Msgbox HelpMsg, vblnforuation, 'rYour HeIp is Hererr
window. event. cancelBubble=true
End Sub
help to your lE
As you can see in the previous code, it is very easy to add context-sensitive
with it, and then use the onhelp
applications. Simply opei a window with the help-button associated
event to take some aciion.To try this example for yourself, open
helpl .htm and follow the directions
that appear.
 2O2 I ELECTRONIC COMMERCE
5,55 Prepare For Growth In E-Commerce Database Design
Creating a database for a Web-enabled or e-commerce application? Think generically and look beyond
the application at hand.
lN THE BEGINNING, DESIGNING AND implementing an e-commerce database was just another
data modeling exercise. Get the requirements from the users, design the normalized database,
implement it using a suitable DBMS, and you were all set.

5.55.1 Design a useful Web.Enabled Database

Design the database generically to provide for functional growth....
However, due to the enormous growth and popularity of e-commerce, the job's not that simple anymore.
When you design a modern e-commerce database, it's important to design the structure of the
database generically enough to provide for future functional growth. Although the database may
reside on your own Web server, under your own control, changing the structure of a database under
a Web-enabled application is not a trivial task. You are going to suffer an hour or two of downtime
while unloading and reloading, or restructuring the data.
The problem is much worse when an lnternet seruice provider hosts yourdatabase. Some lSPs are
reluctant to implement changes, and one is always nervous that it may not implement the desired
modifications correctly, especially when it has to preserve and manipulate existing data. Obviously,
the code changes to the application to fit the new structures will also cost time, employees, and
money to implement.
So how do you design a database generically? By using a technique called row-wise design, instead
of the column-wise type of design one tends to use initially. With column-wise design, one creates a
column for every aspect (or attribute) of each entity about which you want to store data. For example,
with column-wise design, one would have (among others) the lollowing columns in a table used to
represent customers:
.CUSTOMERS(CustlD, Name,
Surname,'HomeTelephone, WorkTelephone, WorkFaxNumber,
PagerNumber, _).
Over the last few years, this table would have had to be changed a few times to add:
*MobilePhoneNumber,
HomeEMail-Address, WorkEMailAddress, Personal-WebSite, WorkWebSite,
and maybe even more contact details.
With row-wise design, one would have had a master table for the entity, a master-detail table for the
contact details, and a lookup table for the contact types. This structure is depicted in Table 1. With
this kind of database design, one can add a new type of contact detail, such as SatellitePhone-
Number, to all new and existing customers by merely adding a row in the lookup table.
As you can expect, such a generic design has its price, too.lt requires additionalselects to retrieve
the lookup data (the list of valid contact types in our example); it consumes more storage space than
a column-wise design; and if the lookup data's "description" is not used in the master-detail table, it
requires an additionaljoin to display this data (the contact types, in our example).
The last point is the classical trade-off you often find with these types of designs. Either the text of
the lookup data is repeated often, which then consumes more storage space, or you have to use a
surrogate code for the lookup data, in which case you f requently require the additional join operation
in the application code. With storage space becoming more affordable and available, most people
use the type of design where the actual lookup data description is carried in the master-detailtable,
and the lookup table is merely kept to display the list of valid values.
 GENERATING E.COMMERCE / 203
As for implementation trouble and costs, this style of application is not too complex to implement.
Developers quickly get used to this style of coding, and tend to prefer the slighfly more challenging
coding to doing post-implementation extensions to the code_especially someone else's code.

5.33.2 DeployAnyrtime
An added advantage of such a generic design is that you can develop the application once and
deploy it many times. For example, with a correct generic design, you can store information about
clothes (size and color), lood (pizzatoppings), and autos (colors and options) in the same product
tables.
The big problem with generic row-wise designs is to watch out for overkill. You can over-generalize
the structures, and as a result suffer from performance and growth problems, for functionality that is
never used. Contact types and product types are good examples for generic designs, especially for
products with different attributes, such as sizes, colors, languages, shipment sizes, etc. However, it
is hardly ever necessary to code customers'addresses, accounts, and transaction details in such a
generic way.

5.3t-3 0ther Database Design lssues

Apart f rom generic database designs, other aspects to consider are pri- mary keys, complex datatypes,
and denormalization.
Make sure you have unique lDs for allthe entities, such as products and customers, that are stored
in the database. lt is best if these are system-maintained, unique, small, numeric lDs. Not only do
they consume less storage space, and often result in faster join operations, but it's best if they
cannot be changed by the business users, regardless of any changes in the business. We have seen
too many times that product codes, Social Security numbers, tax numbers, etc., are altered due to
changes in the business world. Numeric keys are also easier to store in cookies, il those are used in
yourWeb applications.
One must take great care when using complex datatypes in an e-commerce database design. Although
one requires multimedia data in most Web applications, you must make sure that the data can be
rendered in a useful form in the application when it runs in a Web browser. Some browsers support
only certain datatypes, and it may be too limiting to transform the data between lormats to suit only
a handfulof browsers.
Denormalization is a concept often considered in query databases and data warehouses, but it is
also considered for e-commerce databases. For example, where an invoice is directly related to an
order, it may make sense to denormalize the order number in the invoice, too, together with the
foreign key of the order. This often saves the extra join to retrieve the order number f rom the orders
table, to display it on the Web application. Howevel if-the denormalized data can be changed through
the application, this may not be such a good approach.
The designs of e-commerce database applications can also alfect database administrators. With
most e-commerce systems, it has to be thin-client applications that can be run over Web browsers.
This requires a lot of the functionality to be built into the database or into application servers, but not
every lT group has the skills to code complex logic in application servers hosted in multi-tier
architectures. As a result, a lot ol the business logic finds its way into the database, in the form of
stored procedures, triggers, and views.
CRM When designing any Web-enabled database, consider customer relationship marketing issues.
Examples of these include recording and storing customer profiles and customer preferences.These
are necessary to personalize the Web pages on subsequent visits of these customers, based on
 2O4 I ELECTRONIC COMMERCE
what they were interested in on previous visits. ln this way, you can cross-sellto
them and guide
them-without their knowing_to products and services that'nriy interest them.

]o make this possible, store a history of the pages each customer visited, keywords they searched
for, and products they ordered. ldeally, howevei let customers tailor their own p;oflL;.
I once ordered a cD lrom a well-known online store as a gift for
my sister. lt was the first cD I ordered
from that particular store, but it differed totally from my-own musical preferences. ioilowing
tnat, t
had.to fill in lengthy questionnaires and evaluations to try and alter my profile. weeJiess
to say, I
don't use that store anymore. But with a store such as CD illow, it is trivially easy to atier your profile,
and thus get good CD recommendations from the site.
CRM data can also be a very valuable commodity. Some marketing companies will pay top
dollarfor
customer profile data. So, in addition to collecting valuable cross--elling data for yorio*n use, you
may also collect a valuable asset. Be aware, of the privacy-and security issues of the
'owever,
country you operate in, as well as where your customers are from. Many customers wilitake exception
if their personal profiles are sold to organizations of which they may not approve.
Two of the big issues with customer relationship marketing are for how long to store the data
and how
heavy to influence subsequent visits based on the hiJtory of previoui visits. The first issue is
direc e, but the second issue is muih more subjective. Some people follow
links ided anywhere, while other users take greit exception to'Ueing guided
offth ally wanted to access the particular w-ebsite. The issue of whJther a
person wants to be guided around is one you need to record.

5.33.4 Supply Chain ianagement

E-commerce databases are very closely related to supply chain management. An e-commerce
database can provide extremely useful information for stock control. Suppliers can analyze the sales
of their products and provide just-in-time delivery. ldeally, this information should be provided online
to the suppliers, without an excessive burden on your lT, operational, and administrative staffs.
Closely related to the supply chain is the payment chain. One should allow for transaction switching
directly through to the major banks and f inancial institutions. To provide this, one needs to know the
various interfaces to the.available switching systems, which differ from country to country, as well
as the data required for these interfaces. With such direct payment systems, it is also necessary to
keep journals of allthe payments made and received in analfzable format in the database.

5.55.5 Security
Security is a concept one cannot work into the design after a breach. Nor should one purely rely on
the underlying DBMS's security mechanisms. lnstead, analyzethe security requirements related to
the data and the applications beforehand, and design it into the database irom scratch. lf you have
to allow per-user password-controlled access, per-user visibility of the data, and provide the safe re-
use of protected information, security becomes part of the data requirements of the system.you also
have to consider the privacy of personal information, if that type of data is maintaineO ih tne database.

5.55.5 Availability
Think about the backup and restore strategy to be used with the e-commerce database, and how it
will influence the design. Although backup and restore is a database administration issue, the 24-7
requirement of most e-commerce databases may make it become a database design issue as well.
It may force you to design and use partitioned tables to reduce the possible downtimes of the active
operational tables. lt may a.lso lorce you to use alternate backup and hot stand-by strategies, such
as data replication, which in turn may influence the database design, as some replicators can function
only with pure third normalform database designs.
 GENERATING E.COMMERCE /205
5-33.7 Yolume Growth
Even if one starts off small, it is important to think of volume growth. One of the best examples is
eBay. Pierre Omidyar started the company in September 1995 as a site where his wile could trade
the Pez candy dispensers she collected.Today eBay hosts the world's largest personal online trading
community through a new market_with efficient one-to-one trading in an online auction format.
lndividuals use eBay to buy and sell items in more than 1,600 categories. As a result, eBay provides
more lhan two million new auctions, and 250,000 new items every day from which users may choose.
Even though your database may not have to grow f rom 400 items per day to 250,000 in less than f ive
years, consider various techniques used for very large databases, such as partitioned tables and
union views.

5.55.8 Usage Growth

With an e-commerce database, the usage and visits can be minimal, or they can explode. This is
mostly related to the company's marketing effort, website popularity and ease of use, and products
offered.To prepare for high-usage patterns, design an architecture that willscale wellto a multitude
of users; a database that can grow well, and split the data and information into online operational and
ofl-line informational content.
The latter is done best with data mart technology. Create a data mart that contains all the information
that suppliers, managers, customers, and other interested parties need to access. By duplicating
the information on the database in a query-friendly form in a data mart, one removes the query
processing load from the operational database, freeing it for faster processing.This results in faster
response times and allows database administrators to lune the operational database for online
transactions, while the data mart is tuned for informational and statistical type queries. Such a data
mart can provide for a wide variety of applications, including market tendency analysis, product
viability studies, order status requests lrom customers, and product supply information.
By considering the issues described above, you should be able to design and implement an e-
commerce database that should be usefullor a while.
A common mistake when creating a Web site is to neglect accessibility. Accessing the Web
rflatters_and not just for those with limited vision, hearing, or mobility. Many other groups have
trouble going online, and these groups may number among your organization's customers or employees.
Making your Web site more accessible can improve customer experience with your site and might
also give you a competitive advantage when bidding on contracts.
For example, accessibility matters to people using their sight or hands for other tasks, as well as
those working in a loud environment who can't hear Web content. Accessibility also matters to
people using PDA browsers, cell phone browsers, and WebTV technologies that sometimes make
getting online difficult. At the other end of the technology spectrum, accessibility is an issue for
those with slow connections, poor phone lines, or older browsers that don't handle tables and f rames.
Accessibility even matters to search robots as they attempt to index and abstract your Web site'
Accessibility is also important to a rapidly growing segment of lnternet users-seniors. ln December
1998, people over age 55 bought 23 percent of all consumer PCs in North America. Seniors using the
lnternet spend more time online than any other age group. Accessibility is a significant issue for
seniors because, by age 65, most people have a harder time focusing and resolving images,
distinguishing colors, and adapting to changes in light. Some hearing loss is common by age 65, and
arthritis and joint stiffening may make using a keyboard or mouse more difficult'
Accessibility may even be a legal matter. A visually impaired public-transit customer recently filed a
206 / ELECTRONIC COMMERCE

complaint claiming the San Francisco Metropolitan Transportation Commission Web site violates the
Americans with Disabilities Act (ADA) because the commission's Web site is inaccessible to his
screen reader, which translates text from Web sites. Similarly, in November 1g99, the National
Federation of the Blind filed suit against American Online (AOL), stating AOL violates rhe ADA
because AOL has "failed to remove communications'barriers presented by its designs, thus denying
the blind independent access to this service."

Selection From theWeb Accessibility tnitiatiue (WAI) Guidelines for lJniversal Access toWeb

The ADA applies to many people-about 35 million people in the U.S. have disabilities, according to
government statistics. The Wodd Health Organization estimates disabilities at 750 million people
worldwide. Your organization must take accessibility into account.

5.34 Guidelines for Universal Access

Fortunately, making your Web site legal is easy. The Web Accessibility lnitiative (WAl) offers
comprehensive guidelines for making your Web content accessible to everyone (www.w6.org/TR/
WAI-WEBCONTENT).TheWorldwideWeb Consortium (W3C) recommended adopting these guidelines
in May 1999.Tap into these resources so you understand what to do and what to avoid as you design
your Web site.
Each of the 14 WAI guidelines includes a prioritized and cross-referenced set of checkpoints, and
each checkpoint links to a set of techniques you can implement (see Figure 1 ). Designing your Web
site appropriately for each checkpoint often benefits multiple disability groups, as well as the Web
community as a whole. For example, when providing a series of related links, provide introductory
information in the first link, and then add distinguishing information in the following links. This helpi
auditory users, such as the blind, visually impaired, or those who use devices with small or no
displays-basically, people who can't scan the page quickly with their eyes. By handling the links this
way, these users get a good sense of the related links as they "scan" by tabbing from one link to
the next.
Before you begin to feel overwhelmed at the thought of assessing your Web site against 1 4 guidelines
that specify 65 checkpoints, you'll be glad to know the WAI prioritizes the checkpoints, so you can
locus on what's critical:
Priority 1. A Web content developer must satisfy this checkpoint. Othenruise, one or more groups will
find accessing information in the document impossible. Satisfying this checkpoint is a basic
requirement for some groups to be able to use Web documents.
 GENERATING E-COMMERCE I 2O7
Priority 2. A Web content developer should satisfy this checkpoint. Otherwise, one or more groups
will find it difficult to access information in the document. Satisfying this checkpoint can remove
significant barriers to accessing Web documents.
Priority 6. AWeb content developer may address this checkpoint. Otherwise, one or more groups will
find it somewhat difficult to access information in the document. Satisfying this checkpoint can
improve access to Web documents.
Use these priorities when you plan to enhance your existing Web site. Make certain any new pages
you develop comply with priority 1 and2 checkpoints. As you revise pages, make sure they at least
comply with priority 1 checkpoints. lVtake sure critical pages, such as high traffic and important
content, also comply with priority 2 checkpoints. Comply with priority 3 checkpoints after you've
upgraded your site to meet all priority 1 and 2 checkpoints.

5.34.1 Testing Your Web Site

Several products enable you to test your Web site for accessibility compliance. One easy way is to
use Bobby, a Web-based tool that checks your Web site's accessibility. Created by the Center for
Applied SpecialTechnology, Bobby is free on its Web site (Cast.org). Enter yourWeb site's URL and
Bobby tests the entire site against the WAI guidelines. As an added benefit, Bobby also tests your
site for browser compatibility. Bobby checks every line of the site and creates a detailed report of
any access problems (see Figure 5.1).

on tfie €rnor m€ssagee betow to find out morG information.

ris pa{l€ dEg rpt yet rneet the requir€rEe4ts ior Sobby Approved statuE. Belot", ts e ltst of
EaasEslblllty prcblenn that shoutd be fixed tn ordsr to make Ehis paqe Eoaes€ible to Fe{pli

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Line 877: <br><tt{FtlT SORD€R='"G'TYF[="lp'1461't N4ME="voteA(ticn-' VALUE="Votea
src='tirnage#v
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value*'\*dste' t.qif'>

Fig.5.2: Here's Bobby, Cast.org'sTool to EvaluateWeb Accessibility

Two products f rom The Productivity Works (ProdWorks.com) enable you to test your Web site design
by listening to how the site sounds when converted to speech. One product, pwWebSpeak PLUS, is
a nonvisualWeb browserthat reads Web pages to you.The other product, pwTelephone, enables you
to browse yourWeb site overthe telephone.Test yourWeb site with either of these tools to experience
your site as people with reading and sight problems will hear it.
All is not lost if yourWeb site depends on Java. Sun Microsystems lnc. has develbped an accessibility
API for Java applications (Java.sun.com/products/jfc). The Java Accessibility API helps you create
208 / ELECTRONIC COMMERCE
assistive technologies to interact and communicate with Java Foundation Classes and AWT Abstracl
Windowing Toolkit components. Typrcal technologies include screen reading, screen magnification,
and speech recognition. Both people with and without disabilities can use accessibility-enabled Java
applications.

5.34.2 Web Accessibility lnitiative (WAl) Guidelines for Universal lccess to Web
Content
lf your interest is piqued, you definitely want to explore theTrace Research and Development Center
Web site (TraceCenter.org). Trace. a research center at the University of Wisconsin, Madison, focuses
on making technology more accessible for everyone.Trace hosts Designing a More Usable World for
All, a Web site devoted to encouraging the princrples of universal design (see sidebar, "Principles of
Universal Design"). This Web site provides many useful resources, rncluding a variety of articles,
research results, and links on topics such as Web-access tools, multimedia, and virtual-reality
access.This site also provides information about organizations, projects, and technologies addressing
Web-access issues and forums for discussing accessibility issues. A good way to start is by reading
an article about the major disability groups and some specific barriers to accessibility they encounler,
and then browsing through the rest of the material.
As the world becomes increasingly interconnected through a myriad of new devices, Web accessibility
matters more and more-to everyone. By following the principles and guidelines here and on the Web,
you can make your Web site accessible to all and give your organization the competitive edge it
needs.
Web Accessibility lnitiative (WAl) Guidelines for Universal Access to Web Content
O Provide equivalent alternatives to auditory and visual content.
tr Don't rely on color alone.
C Use markup and styie sheets, and do so properly.
D Clarity natural language use.
D Create tables that transform gracefully.
D Ensure pages featuring new technologies transform gracef ully.
D Ensure user control of time-sensitive content changes.
O Ensure direct accessibility of embedded user interfaces.
O Design for device-independence.
D Use interim solutions.
D Use W3C technologies and guidelines.
tl Provide context and orientation information.
O Provide clear navigational mechanisms.
O Ensure documents are clear and simple.
5.34.3 Principles of Universal Design
D Equitable Use. The design is usef ul and marketable to people with diverse abilities.
D Flexibility in Use. The design accommodates a wide range of individual preferences and
abilities.
D Simple and lntuitive Use. Use of the design is easy-to-understand, regardless of the user's
experience, knowledge, language skills, or current concentration level.
D Perceptible lnformation.The design communicates necessary information effectively to the
user, regardless of ambient conditions or the user's sensory abilities.
D Tolerance for Error. The design minimizes hazards and the adverse consequences of
accidental or unintencied actions.
 GENERATING E-COMMERCE /209
D Low-Physical Effort. The design can be used eff iciently and comtortably, and with a minimum
of fatigue.
Size and Space for Approach and Use. Appropriate size and space is provided for approach,
reach, manipulation, and use, regardless of user's body size, posture, or mobility.

5.55 General Agreement on Tariffs and Trade (GATT).

GATT is a treaty and internationaltrade organization in existence f rom 1948 to 1995. GATT members,
known as contracting parties, worked to minimize tariffs, quotas, preferential trade agreements
between countries, and other barriers to internatronaltrade. ln 1995 GATT's functions were taken
over by the World Trade Organizatron (WTO), an international body that administers trade laws and
provides a forum for settling trade disputes among nations.
GATT was founded on the principle of nondiscrimination. Member nations were bound by the treaty's
most-favored-nation clause, which required members to treat all other contracting parties equally.
Once a member reduced a tariff for another member country, that reduction applied to all member
countries. However. an escape clause allowed a nation to withdraw its tariff reduction if it seriously
harmed the country's domestic producers.
GATT members sponsored eight specially organized rounds ol trade negotiations.The last round ol
negotiations, called the Uruguay Round, began in 1986 and ended in 1994. At the end of the negotiations,
the members of GATT, as well as representatives from seven other nations, signed a trade pact that
will eventually cut tariffs overall by about one-third and reduce or eliminate other obstacles to trade.
The pact also took steps toward opening trade in investments and services among member nations
and strengthening protectron for intellectual property-that is, creative works that can be protected
legally. The 1994 trade agreement officially took effect in January 1995, but it will be years before its
pro'visions are lully implemented.
The 1 994 GATT pact aiso provided for establishment of the WTO. Throughout 1 995, GATT and the
WTO coexisted while GATT members sought their governments'approval for WTO membership.
After the transition period, GATT ceased to exist. As of 1996 almost all of the 123 nations that had
ratiJied the 1 994 GATT agreement had transferred membershrp to the WTO. Althoughihe WTO operates
a dispute settlement process similar to the one under GATT, it nas stronger power to enforce
agreements, including authority to issue trade sanctions against a country that refuses to revoke an
offending law or practice.
The 1994 GATT treaty was one of the most ambitious international trade agreements to be signed by
such a large number of nations. ln the United States, supporters of the agreement said it would
create jobs and improve business. Opponents claimed that the new GATT treaty would lead to
massive losses of jobs in manufacturing and that the powerful WTO would threaten American
independence. A number of groups, including environmentalists, human-rights activists, and labor
organizations in the United States and other countries, argued against the treaty, claiming that it
failed to link lrade preferences to protections for the environment and workers'rights.The Congress
of the United States approved U.S. participation in the treaty-including membership in the WTO-in
December 1 994.
GATT originated after World War ll (1939-1 945) as a charter for the lnternational Trade Organization
(lTO), a proposed specialized agency of the United Nations. GATT was signed by 23 nations at a
trade conference in 1947 and became effective in January 1948. Although the ITO failed to win
ratification by the United States Congress in 1950 and never came into being, the GATT remained in
use to govern international trade.
 210 / ELECTRONIC COMMERCE

5.36 World Trade 0rganization (WTO)

WTO is an international body that promotes and e
The World Trade Organization has the authority t
agreements, to oversee world trade practices, a
The WTO was established in 1994 when the mem
(GATT), a treaty and international trade organization,
signed a new trade pact. The WTO was created
to replace GATT.
The wTo began operation on January 1, 1995. GATT and
the WTo coexisted until December 1995,
when the members of GATT met for the last tir e. Although the
WTo replaced GATT, the trade

and computer programs.The WTO is also aform

binding on its member states. The organization
I

Members can refer trade disputes to the wTo where a dispute panel
composed of wTo officials
serves as arbitrator' Members can appealthis panel's rulings to awio
appellate body whose decisions
are final. Disputes must be resolved within the tir e limit-s set by
wro rules.
As of 1996 almost all of the 123 nations that had signed the new
GATT pact had transferred membership
to the WTo, including the United States. About 30 other nations
had also applied for membership.
The WTO is based in Geneva, Switzerland, and is controlled by general
a council made up of member
states'ambassadors who also serve on various subsidiary ani sp.'ecialist
committees. The ministerial
conference, which meets every two years and appoints the wio's
director-general, oversees the
General council. Renato Ruggiero, a former ltalian trade minister, became
the first full-time director-
general of the WTO in May 1995.
The agreements that the WTO will administer are expected to increase
annual world trade by at least
$755 billion by the year 2002.

5.37 writing Software slprograms for Business Applications

This section provides a brief history of software applications and an
overview of the technologies
used to build intranet business applications. lt is rimed at the
technical professional who desires to
understand the technology and the tradeoffs required as software systems
migrate to Web-based
tools and infrastructure"

5.37.1 Traditional BusinessApplications

Many early business applications were written for a single dumb terminal
connected to a process
running the program on the computer.These applications iypically
shared data with other applications
through the file system or database. Each user required a sepaiate process,
and that process ran a
copy of the entire program. This implementation was relaiively simple to
construci. However, it
became inefficient as the number of users increased, and it posed problems
in scaling beyond a
single computer.
Toincre many systems insert a transaction monitor, which allows
develop on inio i number of servers. These servers can then be
distribut e user can run a smaller program than could be run without
the transaction monitor, while the program shares servers with
oiher users on the system, thereby
promoting efficient use of system resources.
 GENERATING E.COMMERCE /211

Tffitdfldl

Fig. 5.3. Process per User Model

The transaction monitor is also responsible for coordinating database updates across the servers
used in a transaction. For instance, when a CSR creates a new customer account, the application
might use multiple servers to update the database. One server may handle the customer information,
and another server may handle the products and services purchased on the account.The transaction
monitor ensures that all servers complete their update successfully; if one fails, the other servers roll
back the update, leaving the database unchanged. This action maintains consistency within the
database.

t*fiteffi

SnrFrom

oilE*A fillsfrrE

Fig. 5.4.Transacti o n Mo n itor Model

 21 2 I ELECTRONIC COMMERCE
Along the way' the dumb terminals became
more intelligent. These newer smart terminals
could
riiJ, requiremenrs thatr the
rne Keyeo-
keyed_
iJ::,,:#:l*:".1^"1"0,:11",.^,1,::.,^"^r.^.:Tl|:*g
in data be numeric or alpha, for instance. "".n collected
some terminals "nior."ins
an entire screen of data before
sending it to the program, thereby minimizing
communication traffic with the computer.
As the personal computer (pC) proliferated in
th
to the PC was a naturalextension. pCs disp
simply using terminal emulators to run the sa
applications followed the modelof running a
sing
or file system to share information.
ln the 1 990s it became common to connect
PCs to a LAN. The LAN enabled pc-based programs
follow a model similar to the transaction monitor. to
ln this model. the work is split between a client,
program running on the PC that is responsible a
for display and data entry and a server that
is responsible
for the business logic and database storage. This
architecture is commonly called client-server. one
challenge introduced with client-server applicatic ns
is that of keeping the software versions on the
numerous clients in sync with the software versions
on the server. when the server software is
updated, allthe clients must also receive an update.
To improve the performance and scalability of
these client-server systems, three-tier architecture
became popular' ln this architecture, a tier is a layer
of software. Three-tier architecture can be
defined in many ways, but the most common
logic in the middle tier, and the database serve
of the system with clear interfaces between th
implemented on one or more machines. A co
multiprocessor machine in the bottom tier as a
machines in the middle tier as business servers, and a large
number of pcs (one per user) in the top

The PC also brou into the mainstream:the GUl. ftre cur significanfly
Ratherthan
ln event-driven
script
changed both how

sy
fl#Jru:"TitTHfl:"1*:""t'$jjiSil,Ti
dictate the next action for the user; instead, the user
selects the next action by a mouse gesture such as
clicking a button, choosing from a pull-down
menu' or double-clicking on an object. This approach
allows more flexibility for the user but requires
more complex software that cannot make the same
limiting assumptions that scripted applications
employ.
For example, a scripted application might force the
csR, when creating a new account, to get the
service address, customer information, services, rnd installation
appointment in exactly that order
and validate the data along the way. A GUI would allow
the csR flexibility in the order that the
information is gathered to match the flow of conversation
with the customer. The GUI must then
validate not only the data but also the assumptions that
used to be handled by the scripting. For
instance, because the seruice address may be ertered after
the services desired, is the service
available at the customer,s address?
Viable software architectures have many variations. This
brief overview only discusses the basic
concepts as they relate to a few of the viable lntranet software
architectures.
 GENERATING E.COMMERCE / 213

Lfa. kibrls,ttsa.fdon tryt

er.lE lrC{o

Fig. 5.5. Th ree-Tier Architecture

5.37.2 lntranet Business lpplications

lntranet business applications use the local-area network (LAN) infrastructure within a company
along with lnternet Web technology to provide high-performance software solutions. Such solutions
go beyond Web publishing, or Web-based forms, to provide f ront-office-grade software suitable for
the customer service representative (CSR) speaking directly with customers. They have a network
user interface (NUl) that resembles a graphical user inierface (GUl) but that runs in a Web browser.

5.37.3 Top Tier: The Web Browser as a User lnterface

ln some ways, we can compare a Web browser to the smart terminal. The primary purpose of the
browser is data presentation and data entry; the browser itself knows nothing about the business
application. Through the use of scripting languages and control components displayed on the Web
page, however, the developer can perform field-level validation before the browser returns data to the
host. The developer can create sophisticated presentation and screen navigation mechanisms that
begin to match the capabilities of a GUl, leading to the name network user interface (NUl).
Like a GUl, an lntranet application must pay carefulattention to usability issues.The users must be
well understood. What is their experience level? How much training will they receive? How f requently
willthey use the program and for how long? A successfulapplication also requires careful analysis of
the intended user's common business scenarios. The designer must be aware of how frequently
program features will be used so the most frequently used will be easy and quick. Current Web
iectinology lacks the robust features found in Windows environments. Hence, designers must make
careful compromises to create usability goals that are achievable within the constraints of the
technology, budget, and schedule.
The term thin client is often applied to browser-based user interfaces (see Figure 4).Thin clients are
contrasted with fat clients, which contain a significant amount of business logic on the PC (see
21 4 I ELECTRONIC COMMERCE
Figure 5)' while it is true that the browser is free of the application's
business logic, it is easy to
underestimate the real cost of the browser both in size and performance.
one popular browser, when
100 megabytes of disk space. lt can also consume
disk reads and writes on the pC. When optimizing
can represent a significant portion of the overall
afairly powerful machine is required to run these

Fig.5.6.Thin Client

Fig.5.7. Fat Client

 GENERATING E-COMMERCE / 21 5

The browser as a user interface specifies a uniform resource locator (URL) requesting a page from
the Web server. URLs typically consist of at least four parts separated by punctuation (e'9., http://
www.webproforu m.com/wpf . html) :

D Protocol
The name of the protocol that tells the browser how to handle the file; in this case http indicates to
use the hypertext transfer protocol.
O Server Address
Location The location of the Web site.The www indicates that this site is on the World Wide Web.
Name_The name of the organization responsible for the site. ln this example webproforum is the
responsible organization.
O OrganizationTYPe
The .com suffix indicates that this is a commercial organization. Other common suffixes include
.edu for educational, .org for noncommercial, and .net for a network service provider.
tr File Paths and Name
Page Name-The name of the Web page to find; wpf in this URL'
page Type_The formatting of the page; in this case html indicates that the page has hypertext
markup language (HTML) encoding.
The network uses the information in the uRL to find the right web server. lf the page name and type
are omitted, theWeb serverwill return the default page forthe site.This is often a shortcut
forfinding
a starting point on the Web.
form the
Using URLs, one page may make references to other pages. These references, or links,
such as
basis-for navigation rruitnin tn" application. Links tc other pages may be attached to_ controls,
with Wtndows-
buttons, givin-g the application a'GUl appearance. Because many users are lamiliar
based aipticitions in'the olfice environment, a GUI appearance provides a familiar and intuitive
interface to the aPPlication.
ln the above example, the page contained embedded HTML tags to specify
formatting. The following
is a simple sample showing-the tags for a heading followed by a couple of paragraphs. The first
paragraph contains a word that will be displayed n bold print'
(hl)The Heading</h1)
This is some <b>bold</b> text
<P>
This is the next ParagraPh'
Along with the HTML, most browsers allow th s' such as push buttons'
key-i"n fields, and drop-Jown-list boxes within
e component embedded
is not already present
on the Web page can also stipulate a location
f it
on the pC. lt is also p-ssiOle to detect that the component on the PC is out of date, notify the user
the user would like to download and install the new
that a newer version is available, and ask whethe r

vers ion automaticallY"

the capabilities of the
Developers can also design and use custom components. Often these extend
application either for information display or data entry'
browser to meet a speciaineed of the
along with the HTML
Most browsers allow code written in Java or other languages to be embedded
by the user
tags. The code can execute when the page is loaded or in response to events triggered
 216 / ELECTRONIC COMMERCE

such as a mouse click'This code can provide components such as graphs or data tables
and sort or
filter actions on the data, allwithout interaction with the server.

5.37.4 ).liddle Tier: The Web Servel and Business logic

The middle tier contains two key components: the Web server and the business logic. The Web
server is an application that handles requests lrom the Web browsers. The Web serve-r delivers
the
page to the browser over the network. lt sends some pages without any modification,
but in a
business application, the Web server uses the business logic to modify pages before sending
them
to the browser.
Business applications must implement security beyond the anonymous browse common for most
Web sites. Security requires the cooperation of components at the top and middle tiers to authenticate
the user and authorize application services. A common approach is the use of a Cialog window
through the browser to enter the user name and password. The middle tier authenticates the user and
establishes a sesslon. All messages between the browser and the Web server use a session identifier
to maintain a logicaiconnection between the tiers.
Once the session is established, the Web server has a mechanism to store the transacfion state.
The state of the transaction reflects the most recent data input by the user that has not been
committed to the database. For instance, when creating a customer account, inforrnation is gathered
about the customer and services, and perhaps an appointment is set to install the new service. As
the user inputs these pieces of information, they are not usually committed to the database right
away. lnstead they are held in memory somewhere until the complete order is ready. Then the order
can be validated for consistency and integrity before committing it to the database.
A critical factor in the performance and integrity of a system is where the transaction state is held.
Opinions vary on this issue, but the software-engineering principles of the three-tier architecture
apply to lntranet applications as well. With a thin-client approach, the state does not belong in the
client because by definition the business logic is in the middle tier. lt is also desirable to keep the
accesses to the database stateless to allow for maximum flexibility and scalability. Keeping the
state at the middle tier associated with the user's session helps minimize lraftic between tiers,
promotes good performance, and makes good use of the technology.
The Web server can use various ways to access the business logic and place the results into a Web
page. Some Web server vendors allow the developer to embed code directly in the Web page. This
code, written in a programming language such as Java or Visual Basic, can directly access the
business logic. Often this code either produces information that is embedded directly into the Web
page before sending it to the browser or generates code that is used to populate a visual control,
such as a data table, with the information when the browser loads the page.This method can lead to
complex Web pages that contain, in addition to the normal text and HTML, code that the Web server
executes in the middle tier and code that the Web browser executes in the top tier. lt is important to
develop and follow programming standards that address managing this complexity.
An early scheme used to couple business logic to Web pages is the common gateway interface
(CGl). CGI involves the use of scripts or programs that Web pages call to process user inputs or
build output data.This technique is generally being replaced by embedding programming languages
such as Java in the Web page.
An important technology emerged during 1998 known as extensible markup language (XML). Although
it is related to HTML, XML allows the developer to define new tags instead of the fixed set used by
HTML. This simple but powedul extension enables a strong mechanism for data exchange between
the Web server and browser. The Web server can use XML to provide data as a series of tag and
 GENERATING E.COMMERCE I 217
value pairs, as shown in the lollowing example.
(custoner)
(1as t-nane)Doe(/ Ias t-name)
(f irs t-name)Sarah( / f irs t-name)
(phone)1 23 - 123 - L23 4( /phone>
(/ custorner)
Using XML to provide the data in this way, in conjunction with some client-side script, means that the
data is sent only once to the client, and the client can provide multiple views of the data using
different sorting or filtering as required. Components for use on browsers are now being built with
XML awareness, and they can parse and display the data directly.
Physically, multiple computers can be used at the middle tier. These computers are implemented as
peers, each with an identicalWeb server. A user can establish a session with any of the computers
and will stay with the computer for the duration of the session. Providing a central URL that redirects
the initial session request to one of the peer Web servers to spread the load across the available
systems can leverage the use of a single computer.This implementation provides some redundancy
in case of a failure. Careful attention here can prevent the failure of any one of these computers f rom
taking down the system. The user of a computer that fails can connect to one of the peers and would
only lose the work for the current transaction. More elaborate schemes can be implemented to
prevent even this loss.

5.37.5 Bottom Tier: The Database Server

The foundation for lntranet business applications is the database. The database is responsible for
storing information until the system requires it. ln particular, it stores the persistent state of all
aspects of the business system. Among the different types of databases, two important types are
the relationaldatabase and the object-oriented database.The relationaldatabase stores data elements
in a table that has rows and columns. Each table has a column or columns that serve as the key to
locate the data, for instance a customer's account number.The object-oriented database uses arbitrary
pointers to relate objects to each other.This more abstract approach offers a performance advantage
for some applications. However, object-oriented databases tend to be less f lexible for ad hoc reporting.
Skillful design of the database through the process of normalization allows the database to handle
data requests and reports not anticipated during the initial design of the system. Normalization within
a relational database involves breaking the grouping of data elements from what may seem like
natural groups into smaller groups that can be reassembled in various ways, as required by the
applications using the database. There is a natural tension between normalization of data and
perfo rmance optimization.
Many lntranet business applications use a transaction monitor to partition access to the database to
enhance pedormance and scalability.The transaction monitor provides an information highway that
can span multiple computers. Servers publish the services they offerthrough the transaction monitor.
Cirents can request a service without knowing where the server runs.The transaction monitor provides
transparency of location.
To enhance performance, it is possible to have many servers, each offering the same set of services,
but through a single queue managed by the transaction monitor. Requests are submitted to the
queue, and tne transaction monitor routes the requests in order to the next available server. This is
comparable to the single line in a bank with multiple tellers serving the line. Unlike the supermarket
model of one line per clerk, the user does not risk getting stuck behind someone with a large request.
 218 / ELECTRONIC COMMERCE

System operators can start additional servers to handle the load

if required or shut down servers as
the workload mix changes.
An important attribute of these servers is that they must provide
context-free services or stateless
services. Just as in the
which e e to
provide the same serv
servers must be desis
information along with t
:fi;"Jt ilfl
required to handle the request.
access tion

5.55.5 lnternationalizationandplatformlndependence
A number of factors increase the complexity of developing and deploying
these lntranet software
applications. Each of them not only expandi the scope ofihe work,
but also increases the cost to
write and maintain these applications.
O lnternationalization
ages and in different countries is typically
. lnternationalization involves making the
locales. This involves externalizing the
ages include labels forfields and buttons,
e, on-line help. lnternationalization also involves.
supporting the different formats for data, time, and currency for both
display and daia entry. The
collating sequence, or sort order, must also be addressed toiisptay
menu'itehs and data properly.
Localization is the process of adapting the software to a locale or country.
This can involve translating
the externalized message into the language of the target locale. ouring internationalization,
the
controls are usually made aware of the locale so that the controls will iutomatically
adjust date,
time, and money formats to the user's setting. Localization may also involve
rewriting part of the
software for localtax laws and other regulatory requirements.
ln the Americas and most European countries, a
characters and punctuation used. A single byte
number of graphical languages, such as Chinese,
to represent the working set of characters and
special visual components for display and data
may also require a special version of the operat
Specialcoding techniques are employed to handle
O Platformlndependence
Often it is desirable to allow some flexibility in the hardware platforms for the
different tierS in the
architedture. Selection of a database at the-bottom tier that runs across multiple
hardware platforms
can significantly reduce the effort to achieve platform independence.The
tuning and operation of the
database changes on different hardware platforms.
At the middle tier, the selection of the object middleware, Web server, and programming
languages
have a significant effect on the complexity of platform independence. lf true plitform
injependence
is desired, compromises must often be made to keep the business logic portable
enough to run
across multiple platforms' Of the three tiers, the middle tier poses the biglesi chailenge
to achieving
platform independence.
The top tierfaces two significant independence issues: (1) hardware/operating
system independence,
and (2) Web browser independence. Some Web browsers run across multiple hardware platforms.
 GENERATING E.COMMERCE / 219
However, care must be exercised to ensure that the features of the Web browser that an application
requires are available across the platforms of interest. Some Web browsers do not support all of their
features on all platforms they claim to support.
Web browser independence requires a'significant elfort in both design and testing. The major Web
browsers continue to leapf rog over each other in features, each implementing the successful features
of the other. lf developers limit themselves to the commonly implemented features across the target
browsers, Web browser independence is achievable, but at the expense of the latest features available
on the browsers. Within the lntranet it is often possible for a company to standardize on one Web
browser and eliminate the need for this independence.