COMPETITIVE BUSINESS AND THE WORLD WIDE WEB


RICHARD O. MASON
CARR P. COLLINS PROFESSOR
MANAGEMENT INFORMATION SCIENCES
COX SCHOOL OF BUSINESS
SOUTHERN METHODIST UNIVERSITY


















OUTLINE

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The Global Economy

New Challenges for Business

  1. Globalization of Markets ----

    Pepsi,

    General Electric

  2. Psychological Changes

  3. Legislative Changes ---- ACTS

  4. Technological Changes ----The Merging of Digital Technologies

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  • Reduced Product Lifecycles -- time-to-market is becoming an ever more significant factor on the ability to achieve market share, profitability and, sometimes even, survial.

  • Increased Cost Pressures -- the need to control costs, with the corresponding desire to improve productivity, continues unabated with renewed emphasis on the productivity of knowledge workers.

  • Increased Demand for Quality and Customer Service -- as competition builds, the increase in customer's expectations for responsiveness and personalized support is beginning to change the culture and operation of industries.

  • Changing Markets -- the only constant for business is that things will change. The need and ability to respond to ever changing market forces continues to push the need to adopt and implement technology to be able to react rapidly.

  • New Business Models -- constant change is now pushing into the very core of many corporations with corresponding new business models emerging for the way in which organizations and people work together. These include:
    • teleworking,
    • virtual corporations,
    • collaborative product development and
    • integrated supply chain management.


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We Must Think About Business Differently

There are Three Roles a Business Can Take in a Changing World

  1. FRAME MAKERS -- Who establish new businesses. -- For example Xerox Copiers

  2. FRAME TAKERS -- Who play by the rules established by others. -- For example Kodak Copiers

  3. FRAME BREAKERS -- Who establish new businesses. -- For example Canon Copiers



























CHAPARRAL STEEL IS A FRAMEBREAK COMPANY

BENETTON IS A FRAMEBREAK COMPANY

Visit Benetton's Home Page



SPRING STREET BREWING IS A FRAMEBREAK COMPANY






Toward a FrameBreak Organization


The Requirements:

  • World Class Operations -- Benchmark against the best in the world.

  • Great Mission -- Provide an enduring service to mankind

  • People Centered/People Valued -- Promote learning, personal development and emotional well being.

  • Knowledge Based -- Add value through knowledge and information






Knowledge must be available on demand, any time, any place, in the form it is needed.



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The Information Superhighway:

Internet, Intranet and World Wide Web

Tools for a FrameBreak Organization




The Internet
-- a public, world-wide link of computers

World Wide Web
-- a section of the Internet that allows people to view and send graphical material, as well as text and data.

The Intranet
-- internal computer links that allow employees to access corporate information, swap information and work on projects together. May also have a portal to the Internet.

Browsers
-- the new, key software







[Internet] [World Wide Web] [Intranet ] [Browsers] [ChinaNet] [Lessons] [Tour]
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WHAT IS THE INTERNET?


The INTERNET is a "network of networks" that links more that 48,000 different networks and connects over 35 million users in more than 60 countries. Within the next few years, the number of people hooked into the INTERNET is expected to surpass 100 million.






A BRIEF HISTORY OF THE INTERNET


1969U.S. Dept. of Defense creates ARPANET
197123 host computers on net, 15 individual nodes
1972First e-mail
1975Approve Transmission Control Protocol and Internet Protocal (TCP/IP)
1984Over 1000 Computers on ARPANET
1986NSF creates National Backbone, SuperComputer Centers
1987 Over 10,000 computers on ARPANET
1988First use by business for Research
1990The "Internet" replaces ARPANET
1991Search and navigation tools developed: WAIS, Gopher
1992Over 1,000,000 computers on Internet

CERN releases World Wide Web

First audio and video broadcasts in WWW

1993National Information Infrastructure Act (NII) passed

U.S. White House goes On Line.

Mosaic browser released

Over 14 million users on line.

1994CommerceNet formed

Electronic Commerce begins

Explosive Growth

1995 CommerceNet and Nielsen Internet Demographic Survey finds:
  • 17% (37 million) of total persons aged 16 and above in the US and Canada have Access to the Internet.
  • 11% (24 million [ US= 22.0, 16.4, 19.4 ]) of total persons aged 16 and above in the US and Canada have used the Internet in the past three months.
  • 8% (18 million [Us= 16.9 , 11.5, 14.6 ]) of total persons aged 16 and above in the US and Canada have used the WWW in the past three months.
  • Internet users average 5 hours and 28 minutes per week on the Internet.
  • Total Internet usage in the US and Canada is equivalent to the total playback of rented video tapes.
  • Males represent 66% of Internet users and account for 77% of Internet usage.
  • On average, WWW users are upscale (25% have income over $80,000), professional (51% are professional or managerial), and educated (64% have at least a college degree).
  • Approximately 14% (2.5 million [ 1.97, 1.51, 1.9 ]) of WWW users have purchased products or services over the Internet (Other surveys place it closer to 8%)






IS WORLDNET IS AN EXAMPLE OF HOW THE INTERNET IS BEING USED TO ORGANIZE INFORMATION ON A WORLD WIDE BASIS.




KEY TECHOLOGICAL COMPONENTS


  1. Physical network providing communication channels and addressing schemes required for information exchange.

  2. Network protocols supporting the flow of information and communication (For example TCP/IP)

  3. Collections of information organized by predefined or ad hoc criteria.

  4. Tools and Techniques to browse through information collections and retrieve relevant items.

  5. Tools to safeguard information --"firewalls"

  6. Electronic transaction systems

  7. Payment authentication systems




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Surveys show that 50% of Fortune 1000 companies plan to implement intranets, and that 17% already have.












  • Use of Internet technologies within the organization.



  • Transparent delivery of an organization's information resources to each individual's desktop regardless of type of computer and with minimal cost, time and effort.











Applications of the Intranet


  • By using "HTML" and a Browser information can be presented and shared within the organization in the same way (in general) by every computer regardless of make or configuration.

  • Company wide information:
    • Manuels and Employee Handbooks
    • Reports
    • Forecasts
    • Job Listings
    • Order supplies and tools
    • Maintence and updating
    • Employee records
    • Project management
    • Managing physical assets
    • Price Lists and Price Books
    • Sales Guides
    • Training Materials
Examples: [ Information SuperHighway ][ Outline ][ Top ]

CHINA IS BUILDING THE RESOURCES





The NCFC backbone, started in 1991 and finished in 1993, was funded by the World Bank Loan and the same amount of funds from the State Planning Commission (SPC). The Computer Network Center (CNC) of CAS was selected to implement the project.

The NCFC backbone is the kernel of the ChinaNet. The original purpose of building this backbone is for the three major institutions (CAS, PU, TU) to share the computing capability in a fast network environment.





SOURCES



NCFC BACKBONE

CHINA NET

Geographic list of Mainland China based WWW servers.

Beijing Information Technology Co.

World-Wid Web Servers Around the World

Evaluation of Sites

CASnet is one component of ChinaNet.

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Browsers





To find the information you want on the large and growing Internet, one needs a tool that automatically searches for information. Such a tool helps find new information, manage the information and to keep track of where you are in the Internet.

A browser is a software program that helps the viewer look through information by repeatedly scanning and selecting. An Internet browser presents a list of menu items or a page of information. After the viewer reads the information and selects an item the browser follows the reference and retrieves the new information indicated.

NetScape
Mosaic
Micro Internet Explorer
Browser Watch


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The WORLD WIDE WEB




The World Wide Web (WWW) is an Internet service that organizes information using hyprermedia. Each document or page can contain embedded references to images, audio, video, applets or other documents. A user browses for information by following highlighted references.
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A Tour of the Internet




ARCO
Shell Oil
British Petroleum
Chevron
Lynda Applegate's Tour


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Brand Awareness: Miller Genuine Draft

Advertise Services: Dun & Bradstreet

Locating Outlets: Bank of America ATM's

Order Entry: Digital's Electronic Connection

Service Tracking: Federal Express

Customer Service: Apple Technical Support

Electronic Catalog: Hewlett Packard and Software Net

Trial Usage: Digital Equipment Corporation's Alpha Computer

Order Fulfillment: NetScape Communications

Distribution Channel: Wells Fargo Personal Banking and The Electric Magic Company

Share Holder Relations: IBM Announcement Letters

Selling Franchises: College Pro

Recruiting Employees: Andersen Consulting and Microsoft

Locating Associates: JCPenney EMail Directory

Sharing Research: Digital Corporate Research

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FINDING RESEARCH INFORMATION ON THE INTERNET



Book Review - Treatise of Petroleum Geology, Atlas of Oil and Gas Fields, Structural Traps II - Tra
Book Review. Treatise of Petroleum Geology, Atlas of Oil and Gas Fields, Structural Traps II - Traps Associated with Tectonic Folding. E. A. Beaumont and N. H. Foster,...
http://sepwww.stanford.edu/seg/reviews/mccorm22.html - size 4K - 2 Mar 96

Petroleum, Natural Gas, and Oilfield Industry Services
Petroleum, Natural Gas, and Oilfield Industry Services. Price Waterhouse is the auditor for six of the 10 largest integrated oil companies in North America and serves...
http://www.pw.com/us/216a.htm - size 6K - 7 Feb 96

Book Review - Structural Traps VIII, Treatise of Petroleum Geology, Atlas of Oil and Gas Fields
Book Review. Structural Traps VIII, Treatise of Petroleum Geology, Atlas of Oil and Gas Fields. Norman H. Foster and Edward A. Beaumont. ISBN 0-89181-590-2; American...
http://sepwww.stanford.edu/seg/reviews/struc_traps_VIII.html - size 6K - 28 Feb 96

Products Canalised(Imports)
Products Canalised(Imports) Petroleum products, namely, Aviation Turbine fuel. Crude Oil. Motor Spirit. Bitumen (asphalt) - Paving Grade. Furnace Oil (except low sulphur...
http://lhotse.mos.com.np/India/canalise.htm - size 2K - 26 Jan 96

No Title
United States Is World's Third Largest Petroleum Producer. WASHINGTON, January 29, 1996 -- While the output of its oil fields has been declining in recent years, the...
http://www.api.org/news/129tip.htm - size 2K - 30 Jan 96

The University of Petroleum of China
University of Petrolem at Guangzhou. City of Guangzhou. The Foreign Language Department. The Foreign Language Department offers undergraduate programs in Petroleum...
http://www.ccem.uiuc.edu/chen/upguangzhou.html - size 1K - 27 Feb 96

The University of Petroleum of China
Petroleum Managers Training Institute at Xisanqi, Beijing. Campus View. Social Science Department. The Social Science Department has four teaching sections:...
http://www.ccem.uiuc.edu/chen/upxisangqi.html - size 1K - 27 Feb 96

The University of Petroleum of China
University of Petrolem, Dongying Campus. The UPC Library on Dongying Campus. Department of Petroleum Exploration. The Department of Petroleum Exploration has eight...
http://www.ccem.uiuc.edu/chen/updongying.html - size 6K - 27 Feb 96

ITE Chronik
Institute of Petroleum Engineering. Department of drilling and production. Germany, D-38678 Clausthal-Zellerfeld, Agricolastr. 10. phone: +49 5323 - 72 2239 fax: +49...
http://www.ite.tu-clausthal.de/chronik.html - size 9K - 18 Sep 95


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Summary: Key Lessons


  1. Build a Strong Internal IT Capability.

  2. Stress Core Compentencies. (Specialize, Outsource)

  3. Manage Value-Adding Channels.

  4. Create, Manage and Reformulate Information Intermediaries.

  5. Consider Interorganizational Systems.

  6. Establish Three Essential Roles:

    1. Leader

    2. SuperTech

    3. Maestro

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Key Legislation Affecting the Information Superhighway


1934 Communications Act

1984 Breakup of AT&T

1984 Cable Act

1991 High Performance Computing and National Research and Education Act

1992 Cable Act

1993 FCC Rulings on Cable Rate Structure

Current Legislation




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FRAMEBREAK
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