Internet is a disruptive technology

• It will DRASITICALLY change an industry eventually
• It will often lead to lower prices
• Others – AI, Smartphone, Cellphones,
• Sustaining – Incrementally better, usually cheaper (with tech)
• Cars – Electric (sustaining), Self Driving (Disruptive),
• Computers – PCss first came out. Laptops

Internet actually invented in 1969!! By DARPA (part of Dept of Defense)
PCs invented in 1981 – by both IBM and Apple
WWW “invented” in 1992 – 3 key events:

• Browser first invented by NetScape
• HTML invented to enable jumping from site to site
• Govt regulation had to allow it also

HTTP, URL, Browser – Internet terms, will do more on these in Chapter 7

Web 1.0 – 1992-2003 – Mostly Static. Selling like Amazon.com, Boston.Com
Why did the web take off – why did it disrupt EVERY industry:

• Convenience – From bed, kitchen table, 24×7
• Save time – Online vs Super Walmart (plus driving over)
• Payment system much smoother
• More types of content (information, news) available
• Any product is available & easily searchable
• Communication – More info available – Customer reviews
• Pricing – ALmost always cheaper online. Coupons, Compare
• Even with shipping, still usually cheaoper online
• Used goods available
• Global market – can get goods from around the world

Company perspective –

• No storefront, no employees! Lower costs!
• Purchasing efficiency! No time to run a 24×7 store
• Global target market- 4Billion who have smartphones
• Pre-order – Guarantee sell some, get the money up front
• Disintermediation – Eliminates stock
• Taking out the middle man (intermediaries) and thus save $
• Better idea of what inventory you have
• More price information availabe
• Lots of follow up – if you didn’t finish the txns, they’ll contact Le
• Errors – less errors because less shipping, less data entry errors
• Better advertising options
• Control goes up – shrinkage, damage,

Models – B2B, B2c (Amazon), C2B, C2C (etsy, Ebay)
(also B2G, G2C…)

• B2B is about 80% of the industry. Late to take off due to risk

Web 2.0 – 2004 onwards – User Generated content

• Facebook, Amazon reviews, Wikipedia
• The more you use it, the better it gets
• OPen Source, Collaboration, Crowdsourcing

Communication –

Synchronous (same time) Both parties must collaborate :
F2F – Face to face
Facetime, Virtual Reality
Phone Calls

Asynchronous:

• Old fashioned USPS – Completely separate send/receive processes
• Wiki (blog)
• Voicemail
• Email
• Social Media – Snap, X,
• Texting (imessage)

Features of Asynch:

• Breaks apart sender & receiver
• Can handle multiple sources simultaneously
• Works better globally (time changes)
• Timed sending
• Reviewable, Forward messages, Revise

Web 3.0 – Nobody know what this is. “Semantic”, “Temporal”, XML.

• These days, we often refer to this as Web3
• People thought it would be all blockchain or Metaverse. Not so much…

Downsides of the Web & Internet

• Amazon – boosted rankings; counterfeit products; fake reviews
• Youtube – Advertising – Bias, the money going to wrong person
• Inappropriate content (section 230)
• Shadow ban certain content
• Fake views of something pushes up the ratings
• Intellectual property violation