Internet Glory, Collapse, and
Beyond ….
YuInfo
Kopaonik, 8 March 2004
Borko Furht
Department of Computer Science and
Engineering
Florida Atlantic University, Boca Raton
borko@cse.fau.edu
1
Just A Few Years Ago …
2
Today
Yahoo Stock Chart
3
Internet Glory:
New Programs
4
Internet Glory:
New Businesses
5
Internet Glory:
New Millionaires
My students:
Carlos
Cardona and
Craig Perriot
Founded in
1999
Yupi.com
6
yupi.com is now msnyupi.com
7
Professor Receives Jaguar
from Ex-Student
8
2000-2002
Internet Collapse
Internet companies going out of business
If your company’s name has .com in the
name, you have no chance to get venture
capital
Investors are avoiding buying shares in
Internet companies
Rich, young people are again poor!
9
HOWEVER,
10
Adoption of Technologies
Internet
(1983)
PC and the Internet are being adopted faster than technologies that shaped the 20th century
11
Business @ The Speed of
Taught
Digital Nervous
System
12
Digital Nervous System
Basic
Operations
Business
Reflexes
Digital Nervous
System
INTERNET
Strategic
Thinking
Customer
Interaction
13
From ISPs to Web Services
M-Commerce
E-Commerce
Financial services
Travel services
Media
Healthcare
services
Software
applications
over the Internet
Videoconferencing
Videophone
Web
E-mail
File transfer
NSF
Distributed computing
environment on the Web
Services
World
Wide
Web
Internet
Service
Providers
Mobile
Internet
Application
Service
Providers
Project
1983
1992
1996
1998
2001
2003
14
E-Commerce Comes of Age
Airline ticket processing cost
Travel agent with a
computer reservation
system
Insurance fee
Traditional agent
$400-700
$8.00
Internet
$200-350
Internet
$1.00
Source: The Emereging Digital Economy
U.S. Department of Commerce, 1998
15
E-Commerce Benefits
Banking costs per transaction
Costs per bill
Paper
Internet
Biller cost
$1.65-2.70
Branch
$1.07
Biller cost
Customer cost
Telephone
$0.6-1.00
$0.42
$0.52
Proprietary
online
system
$0.015
Bank cost
Internet
$0.15-0.2
$0.01
Bank cost
$0.05-0.1
Customer
cost
$0
Source: The Emereging Digital Economy
U.S. Department of Commerce, 1998
16
B2B
Business-to-Business transactions over the
Internet
Companies transform themselves into ebusiness
Companies manage procurement, supply chains,
and partner networks on-line
Elements of B2B
Extranet
eProcurement
eMarketplace
17
Why B2B?
Focus on core competency
Time-to-market
Transaction costs are dramatically reduced
Geographic boundaries do not exist
anymore
Efficiencies and productivity significantly
improved
18
Extranet & eProcurement
Extranet
eProcurement
Buyers
Suppliers
Supplier
Buyer
19
eMarketplace
Buyers
Suppliers
eMarketplace
20
B2B E-Commerce Forecast
1.2
1
0.8
Trillion
$
0.6
Extranet
eProcur
0.4
eMarketpl
2003
2001
0
1999
0.2
Source: IDC
21
Examples of B2B Solutions
Appliance dealer enters
Whirlpool partner portal.
Whirlpool
Order is placed through
customized price list.
Dealer tracks status
of shipment online.
Partner Portal from
IBM allows appliance
dealers to manage
orders and inventory
online.
22
Where Is The Opportunity?
B2B
Software
Extranet eProcurement eMarketplace
eMarketplace
Services
Physical goods
23
Enterprise Application
Integration (EAI) Software
Enterprise
Human
Resources
Procurement
Accounting
Message Bus
Inventory
* Complexity - O(N)
CRM
Sales
* Vitria, Active, TIBCO, Kabira
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B2B Platform Software
“My database will
contact your database”
Enterprise
Enterprise
Human
Resources
Procurement
Inventory
Accounting
Message
Bus
CRM
Human
Resources
Accounting
Message
Bus
Procurement
CRM
Sales
Inventory
Sales
* Extricity, Microsoft, Vitria, WebMethods
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B2B Platform Software
Enterprise
Enterprise
Enterprise
Enterprise
Enterprise
Enterprise
Same problems as in EAI
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Electronic Hub
Enterprise
Enterprise
Enterprise
Enterprise
E-hub
Enterprise
Digital market
Exchange
Enterprise
VerticalNet
FreeMarkets
27
Copper - Fiber - The New Wire
28
Mobile Internet Access
1200
1000
Internet
Subscribers
(millions)
800
Fixed
600
Mobile
400
200
0
2000
Source: Ericsson
2002
Year
2004
2006
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Bandwidth Problem
“Bandwidth is like money
and sex only too much seems to be
enough.”
Amo Penzias,
former chief scientist of Bell Labs
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Mobile Bandwidth
Current access technologies transmit at 9.6 to
19.2 Kbps
TDMA - Time Division Multiple Access
CDMA - Code Division Multiple Access
GSM - Global System for Mobile Communication
M-commerce is possible at these rates, but not
very attractive for business
2.5 G wireless technology provides speeds
~ 100 Kbps
3G wireless technology with speeds up to
2-4 Mbps
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Data Services
Data Transmission Speed - k bps
2,000
1G
3G
2G
Video Streaming Remote
Medical
Video
Service
Conference (Medical
(High quality) image)
384
Audio Streaming
144
Text Messaging
128
Still
Imaging
Video on
Demand:
Sports, News
Weather
Video
Conference
(Lower quality)
Image Mobile TV
Video Surveillance,
Video Mail, Travel
Voice
64
Electronic
Newspaper
Voice
Mail
32
Fax
JPEG
Still Photos
Electronic
Publishing
E-Mail
Karaoke
E-Commerce
Mobile
Radio
9.6
Telephone
(Voice)
0
Data
Weather, Traffic, News,
Sports, Stock updates
Audio
Voice-driven Web Pages
Streaming Audio
32
Heterogeneous Networks
Multiple air interfaces can complement each other to
provide optimized coverage of a particular area
33
M-Commerce Applications
Transaction Management
Digital Content Delivery
Telemetry Services
Searching for Killer Applications!
Perhaps in Education!
34
Transaction Management
On-line shopping tailored to mobile
phones and PDAs
on-line catalogs
shopping carts
back office functions
Initiate and pay for purchases and
services
Micro-transactions - subway fees,
digital cash
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Digital Content Delivery
Information browsing
weather
transit schedules
sport scores
ticket availability
market prices
Downloading entertainment products
Transferring software, high-resolution
images, and full-motion video
Innovative video applications
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Telemetry Services
Wide range of new applications
Transmission of receipt of status,
sensing, and measurement information
Communication with various devices
from homes, offices, or in the field
Activation of remote recording devices
or service systems
37
AT&T Wireless
Welcome to mlife
Get the latest weather forecasts
Get the latest weather forecasts
Find breaking
news,
flight information,
entertainment..
Get the business and
Get the investments
business and news
investments news
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Secure Authentication
High Security Authentication,
including Bio-Authentication
39
New Devices and
Multimedia Applications
40
Business Collaboration
Collaborative capabilities allow on-line
information sharing and communication
41
Challenges in Developing
Web Applications
Market environment is changing rapidly
New functionality is important to gain
competitive advantage
Time-to-market is critical
Business need to
Integrate systems
Automate processes
Provide each other with access to key functionality
42
Application Integration
The Challenge of Interoperation
in a Heterogenous Environment
Application A
Application B
?
43
Application Integration
Loosely Coupled
Application A
Application B
XML
Database
Legacy apps
ERP
44
Application Integration
Business-to-Business
Company A
Company B
Application
Application
XML
http
45
Application Integration
Web Services
Company B
Application
ANY
XML
46
Web Services
Web services is the distributed (WWW)
computing platform on which A2A (applicationto-application) applications will be built
Loosely coupled,
Course grained,
Using standard transports (HTTP)
Using XML for payload and envelope
Discoverable via directory lookup
B2B is currently a popular special case of Web
services
47
Web Services
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Components of Web Services
WSDL - Web Service Description Language
WSDL addresses the problem providing a machine-readable
description of a service
SOAP - Simple Object Access Protocol
Lightweight protocol for exchange of information in a distributed
environment
UDDI - Universal Description, Discovery and Integration
ebXML
Messaging specification for communication
XML Signature and Encryption
Provides encryption, privacy, integrity, and authentication
49
“Business Web”
An application that links Web services
and itself is a Web service
New kind of applications use Web services!
50
Web Portals
A Web portal is a single, integrated point of
access to information, applications, and people
Web sites that integrate:
New content with existing content
Server-side applications
Web-based services
Based on existing Web application technology
such as:
Web servers
J2EE (Java 2 Platform Enterprise Edition)
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Type of Portals
Public portals (such as Yahoo)
Bring together information from various
sources, applications, and people
Offer personalized Web sites
Enterprise portals (or Corporate desktops)
Give employees access to organization-specific
information and applications
Marketplace portals (such as eBay and ChemWeb)
Trading hubs that connect sellers and buyers
Specialized portals (such as SAP)
Offer an access path to specific applications
52
Web Portal - Example
 A portal is comprised of several windows that are pulling
information from various sources into a Web-based interface
53
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Conclusions
The secrete to business success in the
digital age is IT success
The secret to IT success is a modern,
flexible infrastructure based on PC and
Internet standards
Prepare for the Digital Future
“Any time there is a change, there is opportunity. So it is paramount
that an organization get energized rather than paralyzed.”
Jack Welch, CEO General Electric
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