1 internet glory, collapse, and beyond …. yuinfo kopaonik, 8 march 2004 borko furht department of...
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Internet Glory, Collapse, and Beyond ….
YuInfoKopaonik, 8 March 2004
Borko FurhtDepartment of Computer Science and
EngineeringFlorida Atlantic University, Boca Raton
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Just A Few Years Ago …
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Today
Yahoo Stock Chart
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Internet Glory:New Programs
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Internet Glory:New Businesses
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Internet Glory:New Millionaires
My students: Carlos
Cardona and Craig PerriotFounded in
1999
Yupi.com
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yupi.com is now msnyupi.com
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Professor Receives Jaguar from Ex-Student
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2000-2002Internet 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!
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HOWEVER,
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Adoption of Technologies
PC and the Internet are being adopted faster than technologies that shaped the 20th century
Internet(1983)
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Business @ The Speed of Taught
Digital Nervous System
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Digital Nervous System
Digital Nervous System INTERNET
Basic Operations
BusinessReflexes
CustomerInteraction
Strategic Thinking
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From ISPs to Web Services
NSF
Project
WorldWide Web
ApplicationService
Providers
InternetService
Providers
1983 1992 1996 1998 2001 2003
E-mailFile transfer
VideoconferencingVideophone
E-CommerceFinancial services
Travel servicesMedia
Healthcare services
Software applications
over the Internet
Web
Services
Distributed computingenvironment on the Web
Mobile Internet
M-Commerce
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E-Commerce Comes of Age
Airline ticket processing cost Insurance fee
Travel agent with a computer reservationsystem
Internet
$8.00
$1.00
Source: The Emereging Digital EconomyU.S. Department of Commerce, 1998
Traditional agent
Internet
$400-700
$200-350
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E-Commerce Benefits
Banking costs per transaction Costs per bill
Branch
Internet
$1.07
$0.01
Source: The Emereging Digital EconomyU.S. Department of Commerce, 1998
Biller cost
$1.65-2.70
$0.6-1.00Telephone
$0.52Proprietary online system
$0.015
Customer cost
$0.42
Bank cost
$0.15-0.2
Biller cost
Customer cost
$0
Bank cost
$0.05-0.1
Paper Internet
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B2B
Business-to-Business transactions over the Internet
Companies transform themselves into e-business
Companies manage procurement, supply chains, and partner networks on-line
Elements of B2B Extranet eProcurement eMarketplace
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Why B2B?
Focus on core competencyTime-to-marketTransaction costs are dramatically
reducedGeographic boundaries do not exist
anymoreEfficiencies and productivity
significantly improved
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Extranet & eProcurement
Supplier
BuyersSuppliers
Buyer
Extranet eProcurement
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eMarketplace
Suppliers Buyers
eMarketplace
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B2B E-Commerce Forecast
0
0.2
0.4
0.6
0.8
1
1.21
99
9
20
01
20
03
Extranet
eProcur
eMarketpl
Trillion $
Source: IDC
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Examples of B2B Solutions
Appliance dealer enters
Whirlpool partner portal.
Dealer tracks status
of shipment online.
Order is placed through
customized price list.
Whirlpool
Partner Portal from IBM allows appliance
dealers to manage orders and inventory
online.
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Where Is The Opportunity?
B2B
Software eMarketplace
Extranet eProcurement eMarketplace Services Physical goods
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Enterprise Application Integration (EAI) Software
HumanResources
Accounting
Procurement CRM
Inventory Sales
Enterprise
Message Bus
* Complexity - O(N) * Vitria, Active, TIBCO, Kabira
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B2B Platform Software
Enterprise Enterprise
HumanResourcesAccounting AccountingHuman
Resources
Procurement Procurement
InventoryInventory
SalesSales
CRMCRM Message Bus
Message Bus
* Extricity, Microsoft, Vitria, WebMethods
“My database will contact your database”
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B2B Platform Software
Enterprise
EnterpriseEnterprise
EnterpriseEnterprise
Enterprise
Same problems as in EAI
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Electronic Hub
Enterprise
EnterpriseEnterprise
EnterpriseEnterprise
Enterprise
E-hub
Digital marketExchange
VerticalNetFreeMarkets
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Copper - Fiber - The New Wire
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Mobile Internet Access
Source: Ericsson
0
200
400
600
800
1000
1200
2000 2002 2004 2006
Fixed
Mobile
Internet
Subscribers
(millions)
Year
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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
2,000
0
32
64
9.6
128
144
384
1G 2G 3G
VoiceVoice
Text MessagingText Messaging
Video StreamingVideo Streaming
Still Still ImagingImaging
Audio StreamingAudio Streaming
Da
ta T
ran
sm
iss
ion
Sp
ee
d -
k b
ps
ElectronicNewspaper
RemoteMedical Service(Medical image)
Video Conference(High quality)
Telephone (Voice)
Voice Mail
E-MailFax
ElectronicPublishing
Karaoke
Video Conference(Lower quality)
JPEG Still Photos
Mobile Radio
Video Surveillance,Video Mail, Travel
Image
Audio
Voice-driven Web PagesStreaming Audio
DataWeather, Traffic, News,Sports, Stock updates
Mobile TV
E-Commerce
Video on Demand:Sports, News Weather
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Heterogeneous Networks
Multiple air interfaces can complement each other to provide optimized coverage of a particular area
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M-Commerce Applications
Transaction ManagementDigital Content DeliveryTelemetry ServicesSearching for Killer Applications!
Perhaps in Education!
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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 productsTransferring software, high-resolution
images, and full-motion videoInnovative video applications
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Telemetry Services
Wide range of new applicationsTransmission 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
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AT&T Wireless Welcome to mlife
Find breaking news,
flight information,entertainment..
Get the latest weather forecasts
Get the business andinvestments news
Get the latest weather forecasts
Get the business andinvestments news
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Secure Authentication
High Security Authentication, including Bio-Authentication
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New Devices and Multimedia Applications
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Business Collaboration
Collaborative capabilities allow on-line information sharing and communication
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Challenges in Developing Web Applications
Market environment is changing rapidlyNew functionality is important to gain
competitive advantageTime-to-market is criticalBusiness need to
Integrate systems Automate processes Provide each other with access to key
functionality
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Application Integration
The Challenge of Interoperation in a Heterogenous Environment
Application A Application B
?
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Application Integration
Loosely Coupled
Application A Application B
XML
DatabaseLegacy appsERP
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Application IntegrationBusiness-to-Business
Application Application
XML
http
Company A Company B
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Application IntegrationWeb Services
Application
XML
Company B
ANY
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Web Services
Web services is the distributed (WWW) computing platform on which A2A (application-to-application) applications will be built Loosely coupled, Course grained, Using standard transports (HTTP) Using XML for payload and envelope
Discoverable via directory lookupB2B is currently a popular special case of Web
services
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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
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“Business Web”An application that links Web services and
itself is a Web service
New kind of applications use Web services!
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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
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Web Portal - Example A portal is comprised of several windows that are
pulling information from various sources into a Web-based interface
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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