Economic structure; introduction "Globalization is to no small extent based upon the rise of rapid global communication networks. Some even go so far as to argue that "information has replaced manufacturing as the foundation of the economy". Indeed, global media and communication are in some respects the advancing armies of global capitalism." (Robert McChesney, author of "Rich Media, Poor Democracy") "Information flow is your lifeblood." (Bill Gates, founder of Microsoft) The usefulness of information and communication technologies increases with the number of people who use them. The more people form part of communication networks, the greater the amount of information that is produced. Microsoft founder Bill Gates dreams of "friction free capitalism", a new stage of capitalism in which perfect information becomes the basis for the perfection of the markets. But exploitative practices have not disappeared. Instead, they have colonised the digital arena where effective protective regulation is still largely absent. Following the dynamics of informatised economies, the consumption habits and lifestyles if customers are of great interest. New technologies make it possible to store and combine collected data of an enormous amount of people. User profiling helps companies understand what potential customers might want. Often enough, such data collecting takes place without the customer's knowledge and amounts to spying. "Much of the information collection that occurs on the Internet is invisible to the consumer, which raises serious questions of fairness and informed consent." (David Sobel, Electronic Privacy Information Center) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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1800 - 1900 A.D. 1801 Invented by Joseph Marie Jacquard, an engineer and architect in Lyon, France, punch cards laid the ground for automatic information processing. For the first time information was stored in binary format on perforated cardboard cards. In 1890 Hermann Hollerith used Joseph-Marie Jacquard's punch card technology to process statistical data collected during the US census in 1890, thus speeding up US census data analysis from eight to three years. Hollerith's application of Jacquard's invention was used for programming computers and data processing until electronic data processing was introduced in the 1960's. - As with Paper tapes are a medium similar to Jacquard's punch cards. In 1857 Sir Charles Wheatstone used them for the preparation, storage, and transmission of data for the first time. Through paper tapes telegraph messages could be stored, prepared off-line and sent ten times quicker (up to 400 words per minute). Later similar paper tapes were used for programming computers. 1809 With Samuel Thomas Soemmering's invention of the electrical telegraph the telegraphic transmission of messages was no longer tied to visibility, as it was the case with smoke and light signals networks. Economical and reliable, the electric telegraph became the state-of-the-art communication system for fast data transmissions, even over long distances. Click 1861 The telephone was not invented by Alexander Graham Bell, as is widely held, but by Philipp Reiss, a German teacher. When he demonstrated his invention to important German professors in 1861, it was not enthusiastically greeted. Because of this dismissal, he was not given any financial support for further development. And here Bell comes in: In 1876 he successfully filed a patent for the telephone. Soon afterwards he established the first telephone company. 1866 First functional underwater telegraph cable is laid across the Atlantic 1895 Invention of the wireless telegraph | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Advertisers and Marketers Perspective With the rapid growth of the Internet and its audience advertisers now have a new medium at their disposal. The placement of the first banner ads in 1994 marks the birth of Internet advertising. Although the advertising industry at first hesitated to adopt the new medium, two facts brushed away their doubts: Migrating Television Audiences: The increased use of the Internet led people to redistribute their time budget. Whereas some cut down on eating and sleeping, more than a third reduced watching television and instead uses the WWW. Interesting Internet Demographics: While methodologies and approaches of research organizations studying the demographic composition of the Internet vary, the findings are relatively consistent: Internet users are young, well educated and earn high incomes. Considering those findings, the Internet in the first place seems to become inevitable to be included in media planning, as part of the audience shifts from TV to the WWW, and secondly, because demographics of the Internet user population are irresistible for marketers. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Acessing the Internet The Net connections can be based on wire-line and wireless access technolgies.
Usually several kinds of network connections are employed at once. Generally speaking, when an E-mail message is sent it travels from the user's computer via copper wires or coaxial cables Satellite communication Although facing competition from fiber-optic cables as cost-effective solutions for broadband data transmission services, the space industry is gaining increasing importance in global communications. As computing, telephony, and audiovisual technologies converge, new wireless technologies are rapidly deployed occupying an increasing market share and accelerating the construction of high-speed networks. Privatization of satellite communication Until recently transnational satellite communication was provided exclusively by intergovernmental organizations as Scheduled privatization of intergovernmental satellite consortia:
When Intelsat began to accumulate losses because of management failures and the increasing market share of fiber-optic cables, this organizational scheme came under attack. Lead by the USA, the Western industrialized countries successfully pressed for the privatization of all satellite consortia they are members of and for competition by private carriers. As of February 2000, there are 2680 satellites in service. Within the next four years a few hundred will be added by the new private satellite systems. Most of these systems will be so-called Low Earth Orbit satellite systems, which are capable of providing global mobile data services on a high-speed level at low cost. Because of such technological improvements and increasing competition, experts expect satellite-based broadband communication to be as common, cheap, and ubiquitous as satellite TV today within the next five or ten years. Major satellite communication projects
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An Economic and therefore Governmental Issue While the digital divide might bring up the idea that enterprises will be able to sell more and more computers during the next years another truth looks as if there was no hope for a certain percentage of the population to get out of their marginalization, their position of being "have nots". Studies show that the issue of different colors of skin play a role in this, but more than "racial" issues it is income, age and education that decides about the have and have nots. There exist ~ 103 million households in the USA. ~6 million do not even have telephone access. Why should they care about computers? The digital divide cuts the world into centers and peripheries, not into nations, as it runs through the boarder between the North and the South as well as through nations. The most different institutions with various interests in their background work in that field; not rarely paid by governments, which are interested in inhabitants, connected to the net and economy. see also: Searching information about the digital divide one will find informations saying that it is growing all the time whereas other studies suggest the contrary, like this one | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Economic structure; transparent customers Following the dynamics of informatised economies, the consumption habits and lifestyles if customers are of great interest. New technologies make it possible to store and combine collected data of an enormous amount of people. User profiling helps companies understand what potential customers might want. Often enough, such data collecting takes place without the customer's knowledge and amounts to spying. "Much of the information collection that occurs on the Internet is invisible to the consumer, which raises serious questions of fairness and informed consent." (David Sobel, Electronic Privacy Information Center) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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The Advertising Industry The advertising industry is dominated by three huge advertising networks, which offer their services throughout the world. Gross income of the three leading agencies is twice as much, as the one of places four to ten. Table: World's Top 10 Advertising Organizations 1999 (figures in millions of U.S. dollars)
Table: Top 10 Global Marketers 1998 (figures in millions of U.S. dollars)
On the other hand the three biggest advertisers only spend about US$ 2 millions less than places four to ten together. Whereas money spent on advertising in traditional media comes from very diverse categories, companies offering computer hard- and software, peripherals or Internet services mainly pay for on-line advertisements. Table: Top 10 Internet Advertisers 1998 (figures in millions of U.S. dollars)
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Internet Advertising The advertising industry has always relied on media to transport their messages and disseminate them to the public. Depending on the product or service advertised and the audience targeted different media are used. Besides cinema and outdoor advertising (posters etc.) the huge majority of ads is placed within the classical media landscape, which includes TV, newspapers, magazines and radio. Whereas in most cases only a relatively small fraction of advertising budgets is spent on cinema, outdoor and radio advertising, newspapers, magazines and TV account for more than two thirds of the money spent on ads. Still with the growing popularity of new media advertisers and marketers have recently also discovered digital networks and especially the Internet for their purposes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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In Search of Reliable Internet Measurement Data Newspapers and magazines frequently report growth rates of Internet usage, number of users, hosts, and domains that seem to be beyond all expectations. Growth rates are expected to accelerate exponentially. However, Internet measurement data are anything thant reliable and often quite fantastic constructs, that are nevertheless jumped upon by many media and decision makers because the technical difficulties in measuring Internet growth or usage are make reliable measurement techniques impossible. Equally, predictions that the Internet is about to collapse lack any foundation whatsoever. The researchers at the Size and Growth In fact, "today's Internet industry lacks any ability to evaluate trends, identity performance problems beyond the boundary of a single ISP (Internet service provider, M. S.), or prepare systematically for the growing expectations of its users. Historic or current data about traffic on the Internet infrastructure, maps depicting ... there is plenty of measurement occurring, albeit of questionable quality", says K. C. Claffy in his paper Internet measurement and data analysis: topology, workload, performance and routing statistics (http://www.caida.org/Papers/Nae/, Dec 6, 1999). Claffy is not an average researcher; he founded the well-known So his statement is a slap in the face of all market researchers stating otherwise. In a certain sense this is ridiculous, because since the inception of the So what are the reasons for this inability to evaluate trends, identity performance problems beyond the boundary of a single ISP? First, in early 1995, almost simultaneously with the worldwide introduction of the "There are many estimates of the size and growth rate of the Internet that are either implausible, or inconsistent, or even clearly wrong", K. G. Coffman and Andrew, both members of different departments of What is measured and what methods are used? Many studies are devoted to the number of users; others look at the number of computers connected to the Internet or count You get the clue of their focus when you bear in mind that the Internet is just one of many networks of networks; it is only a part of the universe of computer networks. Additionally, the Internet has public (unrestricted) and private (restricted) areas. Most studies consider only the public Internet, Coffman and Odlyzko consider the long-distance private line networks too: the corporate networks, the Hosts The Despite the small sample, this method has at least one flaw: Internet Weather Like daily weather, traffic on the Internet, the conditions for data flows, are monitored too, hence called Internet weather. One of the most famous Internet Hits, Page Views, Visits, and Users Let us take a look at how these hot lists of most visited Web sites may be compiled. I say, may be, because the methods used for data retrieval are mostly not fully disclosed. For some years it was seemingly common sense to report requested files from a Web site, so called "hits". A method not very useful, because a document can consist of several files: graphics, text, etc. Just compile a document from some text and some twenty flashy graphical files, put it on the Web and you get twenty-one hits per visit; the more graphics you add, the more hits and traffic (not automatically to your Web site) you generate. In the meantime page views, also called page impressions are preferred, which are said to avoid these flaws. But even page views are not reliable. Users might share computers and corresponding Especially the editors of some electronic journals (e-journals) rely on page views as a kind of ratings or circulation measure, Rick Marin reports in the More advanced, but just slightly better at best, is counting visits, the access of several pages of a Web site during one session. The problems already mentioned apply here too. To avoid them, newspapers, e.g., establish registration services, which require password authentication and therefore prove to be a kind of access obstacle. But there is a different reason for these services. For content providers users are virtual users, not unique persons, because, as already mentioned, computers and For If you like to play around with Internet statistics instead, you can use Robert Orenstein's Measuring the Density of Measuring the Density of Dodge and Shiode used data on the ownership of IP addresses from | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Internet services The Internet can be used in in different ways: for distributing and retrieving information, for one-to-one, one-to-many and many-to-many communication, and for the access services. Accordingly, there are different services on offer. The most important of these are listed below. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Another Question of Security Even with the best techniques it is impossible to invent a cryptographic system that is absolutely safe/unbreakable. To decipher a text means to go through many, sometimes nearly - but never really - endless attempts. For the computers of today it might take hundreds of years or even more to go through all possibilities of codes, but still, finally the code stays breakable. The much faster quantum computers will proof that one day. Therefore the decision to elect a certain method of enciphering finally is a matter of trust. For the average user of computers it is rather difficult to understand or even realize the dangers and/or the technological background of electronic transmission of data. For the majority thinking about one's own necessities for encryption first of all means to trust others, the specialists, to rely on the information they provide. The websites explaining the problems behind (and also the articles and books concerning the topic) are written by experts of course as well, very often in their typical scientific language, merely understandable for laymen. The introductions and other superficial elements of those articles can be understood, whereas the real background appears as untouchable spheres of knowledge. The fact that dangers are hard to see through and the need for security measures appears as something most people know from media reports, leads directly to the problem of an underdeveloped democracy in the field of cryptography. Obviously the connection between cryptography and democracy is rather invisible for many people. Those mentioned media reports often specialize in talking about the work computer hackers do (sometimes being presented as criminals, sometimes as heroes) and the danger to lose control over the money drawn away from one's bank account, if someone steals the credit card number or other important financial data. The term "security", surely connected to those issues, is a completely different one from the one that is connected to privacy. It is especially the latter that touches the main elements of democracy. for the question of security see: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Individualized Audience Targeting New opportunities for online advertisers arise with the possibility of one-to-one Web applications. Software agents for example promise to "register, recognize and manage end-user profiles; create personalized communities on-line; deliver personalized content to end-users and serve highly targeted advertisements". The probably ultimate tool for advertisers. Although not yet widely used, companies like | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Kessler Marketing Intelligence (KMI) KMI is the leading source for information on fiber-optics markets. It offers market research, strategic analysis and product planning services to the opto-electronics and communications industries. KMI tracks the worldwide fiber-optic cable system and sells the findings to the industry. KMI says that every fiber-optics corporation with a need for strategic market planning is a subscriber to their services. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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United Brands Company American corporation formed in 1970 in the merger of United Fruit Company and AMK Corporation. United Fruit Company, the main company, was founded in 1899 producing and marketing bananas grown in the Caribbean islands, Central America, and Colombia. The principal founder was Minor C. Keith, who had begun to acquire banana plantations and to build a railroad in Costa Rica as early as 1872. In 1884 he contracted with the Costa Rican government to fund the national debt and to lay about 50 more miles of track. In return he received, for 99 years, full rights to these rail lines and 800,000 acres of virgin land, tax exempt for 20 years. By 1930 it had absorbed 20 rival firms and became the largest employer in Central America. As a foreign corporation of conspicuous size, United Fruit sometimes became the target of popular attacks. The Latin-American press often referred to it as el pulpo ("the octopus"), accusing it of exploiting labourers, bribing officials, and influencing governments during the period of Yankee "dollar diplomacy" in the first decades of the 20th century. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Chrysler Corporation American automotive company first incorporated in 1925 and reorganized and newly incorporated in 1986. It has long been the third largest automaker in the United States (after General Motors and the Ford Motor Company). Founded by Walter P. Chrysler, it took over the business and properties of Maxwell Motor Company, Inc. (first formed in 1913). Today its major subsidiaries include Chrysler Automotive Operations, Inc., which manufactures Plymouth, Dodge, and Chrysler passenger cars, Dodge trucks, and auto parts and accessories; and the Chrysler Financial Corporation. Headquarters are in Highland Park, Mich., U.S. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Local Area Network (LAN) A Local Area Network is an office network, a network restricted to a building area. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Automation Automation is concerned with the application of machines to tasks once performed by humans or, increasingly, to tasks that would otherwise be impossible. Although the term mechanization is often used to refer to the simple replacement of human labor by machines, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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CIM To perform manufacturing firm's functions related to design and production the CAD/CAM technology, for computer-aided design and computer-aided manufacturing, was developed. Today it is widely recognized that the scope of computer applications must extend beyond design and production to include the business functions of the firm. The name given to this more comprehensive use of computers is computer-integrated manufacturing (CIM). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Server A server is program, not a computer, as it sometimes said, dedicated to store files, manage printers and network traffic, or process database queries. Web sites, the nodes of the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Gopher Gopher is a menu system with hierarchically structured list of files that predates the World Wide Web. Today Gopher is of diminishing importance and mostly replaced by the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Alexander Graham Bell b., March 3, 1847, Edinburgh d. Aug. 2, 1922, Beinn Bhreagh, Cape Breton Island, Nova Scotia, Canada American audiologist and inventor wrongly remembered for having invented the telephone in 1876. Although Bell introduced the first commercial application of the telephone, in fact a German teacher called Reiss invented it. For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/1/0,5716,15411+1+15220,00.html | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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The World Wide Web History Project The ongoing World Wide Web History Project was established to record and publish the history of the World Wide Web and its roots in hypermedia and networking. As primary research methods are used archival research and the analysis of interviews and talks with pioneers of the http://www.webhistory.org/home.html | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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NSFNet Developed under the auspices of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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National Science Foundation (NSF) Established in 1950, the National Science Foundation is an independent agency of the U.S. government dedicated to the funding in basic research and education in a wide range of sciences and in mathematics and engineering. Today, the NSF supplies about one quarter of total federal support of basic scientific research at academic institutions. For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/0/0,5716,2450+1+2440,00.html | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Virtual Private Networks Virtual Private Networks provide secured connections to a corporate site over a public network as the Internet. Data transmitted through secure connections are encrypted and therefore have to be encrypted before they can be read. These networks are called virtual because connections are provided only when you connect to a corporate site; they do not rely on dedicated lines and support mobile use. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Internet Software Consortium The Internet Software Consortium (ISC) is a nonprofit corporation dedicated to the production of high-quality reference implementations of Internet standards that meet production standards. Its goal is to ensure that those reference implementations are properly supported and made freely available to the Internet community. http://www.isc.org | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Wide Application Protocol (WAP) The WAP (Wireless Application Protocol) is a specification for a set of communication protocols to standardize the way that wireless devices, such as cellular telephones and radio transceivers, can be used for Internet access, including While Internet access has been possible in the past, different manufacturers have used different technologies. In the future, devices and service systems that use WAP will be able to interoperate. Source: Whatis.com | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Coca-Cola Company American corporation founded in 1892 and today engaged primarily in the manufacture and sale of syrup and concentrate for Coca-Cola, a sweetened, carbonated beverage that is a cultural institution in the United States and a symbol around the world of American tastes. The company also produces and sells other soft drinks and citrus beverages. Corporate headquarters are in Atlanta, Ga. The post-World War II years saw diversification in the packaging of Coca-Cola and also in the development or acquisition of new products. In 1946 the company purchased rights to the Fanta soft drink, previously developed in Germany. It introduced the lemon-lime drink Sprite in 1961 and the sugar-free cola Tab in 1963. By purchase of Minute Maid Corporation in 1960, it entered the citrus beverage market. In 1982 the company acquired a controlling interest in Columbia Pictures, a motion picture and entertainment company, but sold its interest to Sony Corporation in 1989. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Samuel Thomas Soemmering's electric telegraph, 1809 With Samuel Thomas Soemmering's invention of the electrical telegraph the telegraphic transmission of messages is no longer tied to visibility, as it is the case with smoke and light signals networks. Economical and reliable, the electric telegraph became the state-of-the-art communication system for fast data transmissions, even over long distances. Click | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Public Relations Consultants Association (PRCA) The PRCA was formed in November 1969 as an association limited by guarantee of up to £5 per member and therefore has no share capital. The PRCA tries to encourage and promote the advancement of companies and firms engaged in public relations consultancy.. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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International Cable Protection Committee (ICPC) The ICPC aims at reducing the number of incidents of damages to submarine telecommunications cables by hazards. The Committee also serves as a forum for the exchange of technical and legal information pertaining to submarine cable protection methods and programs and funds projects and programs, which are beneficial for the protection of submarine cables. Membership is restricted to authorities (governmental administrations or commercial companies) owning or operating submarine telecommunications cables. As of May 1999, 67 members representing 38 nations were members. http://www.iscpc.org | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Edward L. Bernays Born 1891 in Vienna, Bernays was one of the founders of modern public relations. An enigmatic character, he was a master of mise en scène with far-reaching contacts in the world of business and politics. The nephew of Sigmund Freund and related with Heinrich Heine, he was also among the first to pursue PR for governments and to produce pseudo-events. Bernays considered the manipulation of public opinion as an important element of mass democracies and was of the opinion that only through PR a society's order can be kept. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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