Electronic Commerce, 12th Edition Solution Manual

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Electronic Commerce,12thEdition9781305867819Chapter1SolutionsReview Questions1.What are the two main categories of electronic commerce?Answer:Thetwo maincategoriesor electronic commerce are:• Consumer shopping on the Web, oftencalled business-to-consumer(or B2C)• Transactions conducted between businesses on the Web, often calledbusiness-to-business (or B2B)2.List several activities that might be considered business processes.Answer:Answers may vary.Transferringfunds, placing orders, sending invoices, andshipping goods to customers are allexamples of business processes.3.List several activities that might be considered a part of business-to-government electroniccommerce.Answer:Answers may vary. Paying taxes,filing required reports and selling goods toa government agency through a state’s Web site are all examples of business-to-government electronic commerce activities.4.Name the technology that businesses have used since the 1960s to exchangetransactioninformation electronically.Answer:Since the 1960s, businesses have used electronic data interchangetoexchange transaction information electronically. Electronic data interchange (EDI)occurs when one business transmits computer-readable data in a standard format toanother business.5.What is a value-added network?Answer:A value-added network (VAN) is anindependent firm that offers connectionand transaction-forwarding services to buyersand sellers engaged in EDI. Before theInternet came into existence as we know it today,VANs provided the connectionsbetween most trading partners and were responsiblefor ensuring the security of thedata transmitted.

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6.What drove the burst of enthusiasm that led to a rapid growth of investmentinonlinebusiness during the first wave of electronic commerce?Answer:In the first wave of electronic commerce, many companies and investorsbelieved thatbeing the first Web site to offer a particular type of product or servicewould give them anopportunity to be successful.This strategy is called the first-moveradvantage.7.What are some of the drawbacks to a strategy that attempts to capitalize onthe first-moveradvantage?Answer:First movers must invest large amounts of money in newtechnologies andmake guesses about what customers will want when those technologies arefunctioning. The combination of high uncertainty and the need for large investmentsmakes being a first mover very risky. As many business strategists have noted, “It isthe second mouse that gets the cheese.”8.What specific Internet technologies led to a growth in electronic commerce indevelopingcountries during the third wave of electronic commerce?Answer:The increases in global online business, especially in less developedcountries,are due in part to the growing numbers of people using inexpensive devicessuch as mobilephones and tablet devices to access the Internet.9.In what specific ways can businesses use online social interactions?Answer:Businesses canuse online social interactions to advertise,promote, or suggestspecific products or services.10.What is crowdsourcing?Answer:Gatheringmultiplesmall investors together for specific business fundingactivitiesiscalled crowdsourcing.11.How canonline businesses use data analytics to increase sales?Answer:Companies that store large amounts of data about their customers’ behaviorontheir Web sites can combine that information with their existing data aboutcustomers’past purchases topredict the kinds of products, services, or special offersin which eachcustomer might be interested.12.Briefly explain the difference between a business model and a revenue model.Answer:A business model is a set of processes that combine to achieve a company’sprimarygoal, which is typically to yield a profit.Arevenue model is aspecificcollection of business processes used to identify customers, market to those

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customers,and generate sales to those customers.13.What is a shipping profile?Answer:A product’s shipping profile is thecollection of attributes,including weightand size, that affect howeasily a product can be packaged anddelivered.14.Briefly explain why many industry observers believe that describing thehistory of electroniccommerce as a series of “booms and busts” is incorrect.Answer:Looking backfrom today’s perspective, we can see that asthe generaleconomy has expanded and contracted, electronic commerce hasconsistentlyexpanded more in the good times and contracted less in the bad timesthan other economicsectors.15.Why is most businessactivity conducted today in hierarchical organizationsrather than inmarkets?Answer:The late Nobel laureateRonald Coase wrote an essay in 1937 in which hequestioned why individuals whoengaged in commerce often created firms to organizetheir activities. He was particularlyinterested in the hierarchical structure of thesebusiness organizations. Coase concludedthat transaction costs were the mainmotivation for moving economic activity frommarkets to hierarchically structuredfirms.16.What is a network economic structure?Answer:Anetworkeconomic structureis abusinessstructure wherein firms coordinatetheirstrategies, resources, and skill sets byforming a long-term, stablerelationshipbased on a shared purpose.17.List four primary activities thatmight be conducted in a particular businessvalue chain.Answer:Answers can include any four of the following:design, produce, promote,market, deliver, and support.18.Briefly explain why an online business can find it difficult to establish trustwith its customers.Answer:Onlinebusinessesface a difficult challenge because a kind of anonymityexists forcompanies trying to establish a Web presence.Because Web sitevisitors willnot become customers unless they trust the company behind the site, a planforestablishing credibility is essential. Sellers on the Web cannot assume that visitorswillknow that the site is operated by a trustworthy business.

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Customers’ inherent lack of trust in “strangers” on the Web is logical and tobeexpected; after all, people have been doing business with their neighbors—notstrangers—for thousands of years. Businesses on the Webmust find ways toovercome thewell-foundedtradition of distrusting strangers.19.In what ways does localization differ from language translation?Answer:The translation services and software manufacturers that work withelectronic commerce sites do not generally use the term “translation” to describe whatthey do. They prefer the term localization, which means a translation that considersmultiple elements of the local environment, such as business and cultural practices, inaddition to local dialect variations in the language. The cultural element is veryimportant because it can affect—and sometimes completely change—the user’sinterpretation of text.20.Briefly describe the functions performed by a freight forwarder ininternational electronic commerce.Answer:A freight forwarder is a company that arrangesshipping and insurance forinternational transactions.Exercises1.In two or three paragraphs, distinguish between the terms “businessactivity,” “businessprocess,” and “transaction.”Answer:A business activity is a task performed by a worker in thecourse of doing hisor her jobwhile a transaction is an exchange of value, such as a purchase, a sale, orthe conversion of raw materials into a finished product.The group of logical, related, and sequential activities and transactions inwhichbusinesses engage are often collectively referred to as business processes.2.Some writershave called the emergence of electronic commerce to be a“revolution.” Othershave described it as a series of waves. In about 100words, briefly discuss the merits ofeach point of view.Answer:Answers will vary.Students could mention that using the term “revolution”directly compares this emergence of electronic commerceto other historicchanges ineconomic organization, such as the Industrial Revolution.On the other hand,referring to this emergence as a series of waves implies that these major changes donot occur as a single event but rather a series of developmentsover an extendedperiod of time.3.In about 100 words, outline the changes in Internet technology that drove

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much of theexpanded consumption of digital content during the second waveof electronic commerce.Answer:Answers will varybut could include:Increase in broadbandconnectionsSubsidization ofcitizens’ Internetaccessin some countriesE-mailusedas integral part of marketing and customer contact strategiesEmergence of digital product distribution businesses to legally distributemusic,video, and other digital productsEmergence of Web 2.04.The use of online advertising in the second wave of electronic commerce wassignificantlydifferent than in the first wave. In a paragraph or two, brieflydescribe this change.Answer:After a pronounced dip in online advertising activity andrevenues near theend of the first wave, companies began the second wave with a renewedinterest inmaking the Internet work as an effective advertising medium. Some categoriesofonline advertising, such as employment services (job-wanted ads) have grownrapidlyand have replaced traditional advertising outlets. Companies such as Googlehave devisedways of delivering specific ads to Internet users who are most likely tobe interested in theproducts or services offered by those ads.5.In the first wave of electronic commerce, many businesses tried to capitalizeon a first-moveradvantage. In the second wave, businesses were more likelyto employ a smart-followerstrategy. In about 100 words, compare the first-mover advantage to the smart-followerstrategy.Answer:Responses will vary but may be similar to the following:With first-moveradvantagemany companies and investors believed thatbeing the first Web site tooffer a particular type of product or service would give them anopportunity to besuccessful. As businessresearchers studied companies who had tried to gain a first-mover advantage, theylearned that being first did not always lead to success.Firstmovers must invest large amounts of money in new technologies and makeguesses aboutwhat customers will want when those technologies are functioning. Thecombination ofhigh uncertainty and the need for large investments makes being afirst mover very risky.An approach in which a business observes first-mover failuresand enters a business later,when large investments are no longer required andbusiness processes have been tested, iscalled a smart-follower strategy.6.Many customers who use mobile devices prefer to make purchases using amobile appinstead of their devices’ Web browsers. It is less clear that thesecustomers search for andselect specific products using only the merchant’sdedicated mobile app. In about 200words, outline the advantages anddisadvantages of using a specific merchant’s mobile appto select andpurchase products.

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Answer:Advantages might include:Fasterto find and purchase productEase of useOne-touch accessEasy to comparison shop while in a brick-and-mortarReceiveinstantretailer and/or product notificationsDisadvantagesmight include:Limitedin terms of product offerings from just one retailerSmaller screen sizes can make it difficult to view productsor look throughmultiple products quicklySmaller devices may make it more difficult to enteraccount/consumerinformationSecurityconcernsregardingentering sensitive payment information7.Many companies are combining their online business activities with anexisting physicalpresence. In about 100 words, explain which elements theyare combining and whatproblems they are solving by doing so.Answer:A combination of electronic and traditional commerce strategies works bestwhenthe business process includes both commodity and personal inspectionelements.Especially considering usedproductselectronic commerce provides a goodway for buyers toresearch andobtain information about availableproducts, features,reliability, prices, andretailers,and also helps buyers find specificproductsthat meettheir exact requirements. Therange of conditions of usedproducts, think cars,makesthe traditional commerce component of personalinspection a key part of thetransaction negotiation.Another approach to combining online and traditional selling strategies hasbeendeveloped toalleviate the burden and high cost of shipping items that haveterrible shippingprofiles.Many retailers offer a buy online, pick-up in store feature.8.Briefly define the term “transaction cost” and, in about 100 words, outlineseveral specificways in which electronic commerce can reduce transactioncosts.Answer:Transaction costs are the total of all costs that a buyer and seller incur asthey gatherinformation and negotiate a purchase-and-sale transaction.Responses on specific ways electronic commerce reduces costs will vary but couldinclude:No brick and mortar store requiredFewer storage requirementsElimination of processing errors

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9.In aparagraph or two, explain how the Internet creates or enhances thenetwork effect.Answer:Responses will vary butmay includediscussions on how the Internet allowsthe technologies(and thus the people behind them)such as e-mail and social mediahave a global reach.10.Write a paragraph in which you distinguish between a business value chainand an industryvalue chain.Answer:Abusinessvalue chain is a way of organizing the activities that eachstrategic businessunit undertakes to design,produce, promote, market, deliver, andsupport the productsor services it sells.An industry value chaindescribesthe largerstreamof activities into which a particular business unit’s value chain is embedded.To visualize this, start with theinputs to your strategic business unit and workbackward to identify your suppliers’suppliers, then the suppliers of those suppliers,and so on. Then start with your customersand work forward to identify yourcustomers’ customers, then the customers of thosecustomers, and so on.11.Political and cultural issues can limit the ability of companies to do businessin othercountries. In about 100 words, provide examples of how specificgovernment rules andcultural norms can interfere with the conduct ofelectronic commerce across internationalborders.Answer:Responses will vary but mayinclude:Translation and localizationissuesDifferent cultural interpretations of simple design elements, such a shoppingcartGovernment control of Internet access in certain countriesCasesC1.Silvercar1.Silvercar excludes customers without access to a smartphone or tabletas well ascustomers who prefer one-on-one service and would rather speak to a person at arental counteror even over the phone. By choosing not to serve these customers,Silvercar is saving a significant amount onthe costs associated with rentalcounterspace, customer transportationto the rental facility, and customer service personnel.2.Answers will vary.A response may include the threat of lost market share. Silvercarattractscustomerswho prefer convenience.To reduce this threat, you could suggestthe development of a mobile app,a curbside service optionand an all-inclusive rentalrate for those customers who would prefer that.

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3.Answers may vary.TheSilvercar employee delivering the car may be the onlypersonal interaction the customer has with the company so it is extremely importantthat this person behelpful. The customer may have questions regarding specifics ofthe rental agreement or the functionality of the car. This employee should possessenough knowledge to assist the customer in afriendly, courteous and respectfulway.C2: Hal’s Woodworking1.Responses will vary.Several possible elements are specified below:STRENGTHS-Established strong reputation in their geographic area-Community connections/ gathering place-Focused dedication to customer service-Pre-existing collection of workshops and seminars-Web-ready, robust inventory control systemWEAKNESSES-Less bulk buying power than larger chains-No national brand reputation-Significant costs to establish Web site with uncertainchance of recouping expenses-No longer stocks lumberOPPORTUNITIES-Exploit regional expertise and knowledge (gardening, regulations, building benefits)-Power tool expertise (classes, demos, booklets, DVDs)-Partner with Web sites of other local and national businesses, organizationsTHREATS-Competition from national hardware chains-Competition from manufacturers2.Responses will vary. Several possible elements are specified below:STRENGTHS-Established strong reputationwith existing high-end customers-Focused dedication to customer service-Web-ready, robust inventory control systemWEAKNESSES-Less bulk buying power than larger chains-No national brand reputation-Significant costs to establish Web site with uncertain chance of recouping expensesOPPORTUNITIES-Power tool expertise (offer e-books and online videos)

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-Offer specialty tools not readily available elsewhere-Partner with Web sites oflocal and nationalwoodworkingorganizationsTHREATS-Competition from national hardware chains-Competition from manufacturers3.Assumptions madeby studentswill vary, butmay include the following:AssumeHal’s Woodworkingplans to expand itsspecialtyproducts and servicesto a national customer baseAssumeHal’s Woodworkingwill invest in the software to connect its inventorysystem to the InternetAssumeHalwill not try to compete with national chains on items that the chainsmayoffer at significantly lower pricesSpecific site content and features thatmay be included could include:a.Feature unique products or manufacturers that the national chains do not.These could include regional businesses and manufacturers who cater to thewoodworking/cabinet making marketsb.Live access to inventory system (to determine if desired items are in-stock orneeds to be special ordered)c.Online training(mix of free and for sale): Halalready has a large body ofproduct and skill training materials that could be added to the Web site.Printouts and sample videos could be offered for free, while relatedfull-lengthvideosande-books could be offered for salefor download. Store expertscould offer live chats on specific topics or offer tips and support on a bulletinboard system.d.Make a direct online translation of the store’s pre-existing bulletin board ofequipment sales and job listings. This could easily be expanded to a nationalaudience.4.Answers will vary.Additional costscould beassociated with building, hosting, andmaintaining Web site,as well asproviding customer service to the national audience.Benefits could include the development of strong brand recognition,andincreasedsales and customer base.

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Electronic Commerce,12thEdition9781305867819Chapter2SolutionsReview Questions1.What is an internet (small “i”)?Answer:An internet (small “i”) is a group of computer networks that have beeninterconnected. In fact,“internet” is short for “interconnected network.”2.Why did the U.S. Department of Defense undertake the research project thatwould become the Internet?Answer:In the early 1960s, the U.S. Department of Defense became concerned aboutthe possibleeffects of nuclear attack on its computing facilitiesso theybeganexamining ways to connect these computers toeach other and also to connect them toweapons installations distributed all over theworld. The goal of thisresearch was todesign a worldwide network that could remain operational, even if partsof thenetwork were destroyed by enemy military action or sabotage.The researchersdetermined that the best path to accomplishing their goals was to create networks thatdidnot require a central computer to control network operations.3.What were Bitnet and Janet?Answer:Bitnet was an independent academic research network developed in the1980s. Janet is theUnited Kingdom’s academic research network.4.On the Internet, what is the function of a network access point?Answer:Network access points providetheprimary connection points for access totheInternet backbone in the United States.5.Brieflydescribe one example of how the Internet of Things might be used toreduce costs or increase efficiency in a business.Answer: Answers will vary but could include examples such as:Coca-Cola added Internet-connected voice recognition devices to its inventorycontrol, shipping, and service support systems, savingmillionsand improvingorder accuracyMany utility companies, such asBC Hydro, an electric utility in BritishColumbia, Canada, uses Internet-connected smart electric meters and remote

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monitoring devices to manageand measurethe flow of electricityArgentine bank Banco de Cordoba used the Internet to connect 2600 videocameras, a new network, and digital signs located in 243 branch locations toits central control and security systemSK Solutions, a provider of construction safety services in Dubai, usesInternet-connected sensors that continually monitor the weight, position,movement, and inertia of machinery and equipment along with ambient windspeed and temperature to give its customers increased worker safety, fasterproject completions, and reduced downtimeThe Rio Tinto coal mining operation in Western Australia uses Internet-connected control systems to operate a fleet of 54 autonomous trucks, anautonomous railway system, and drilling operations, removing safety hazardsto the surrounding community and reducing risky work conditions foremployees.6.What is a border router?Answer:A border router is a computerlocated atan organization’s point of connectionto theInternet thatdecidesthe best path on whichto forward each packet ofinformation as ittravels on the Internet to its destination.Synonymous with gatewaycomputer andgateway router.7.What are the key elements of a private network?Answer:A private network is a leased-line connection between two companies thatphysicallyconnects their computers and/or networks to one another.The key elementsinclude the leased-line and the computers.8.What is a protocol?Answer:Aprotocol is acollection of rules for formatting,ordering, and error-checking data sent acrossa network.9.Briefly describe what the TCP/IP protocol does for the Internet.Answer:TheTCP/IP protocolprovidesthebasis for the operation of the Internet.TheTCP controls the disassembly of a message or a file into packets before itistransmitted over the Internet, and it controls the reassembly of those packets intotheiroriginal formats when they reach their destinations. The IP specifies theaddressing detailsfor each packet, labeling each with the packet’s origination anddestination addresses.10.Why was it necessary for the Internet to adopt IPv6?Answer:In the early days of the Internet, the 4 billion addresses provided by the IPv4rulescertainly seemed to be more addresses than an experimental research network

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would everneed. However,theworldwide growth in the number of mobile devicesand the Internet of Thingshas consumed existing IPv4 addresses much faster thananyone had predicted and thelast available IPv4 addresses were allocated in thesummer of 2015.Thus, the necessity for IPv6.The numberof available addresses inIPv6 is 34 followed by 37 zeros—billions of times largerthan the address space ofIPv4.11.Briefly describe the function of Web browser software.Answer:Web browser softwareis software thatlets users read HTMLdocuments andmove from oneHTML document to another usinghyperlinks.Web browser softwaresends requests for Web pagefiles to other computers, which are called Web servers.TheWeb server software receives requests from manydifferent Web clients andresponds by sending files back to those Web client computers.Each Web clientcomputer’s Webbrowsersoftwarethenrenders those files into a Web page.Examplesof popular Web browser software include Google Chrome, Microsoft InternetExplorer, and Mozilla Firefox.12.What is a Uniform Resource Locator?Answer:The combination of the protocol name and the domain name is called aUniform Resource Locator (URL). It contains the protocol used to access the pageand the page’s location. Used in place of dotted quad notations.13.In what ways does an HTML document differ from aword-processingdocument?Answer:An HTML document differs from a word-processing document in that itdoes notspecify how a particular text element will appear. For example, you mightuse wordprocessingsoftware to create a document heading bysetting the heading textfont to Arial,its font size to 14 points, and its position to centered. The documentdisplays these exactsettings whenever you open the document in that word processor.In contrast, an HTMLdocument simply includes a heading tag with the heading text.Many different browserprograms can read an HTML document. Each programrecognizes the heading tag anddisplays the text in whatever manner each programnormally displays headings.14.Briefly explain how the deep Web contains hidden information.Answer:The deep Web is information that is stored indatabases and is accessible tousers throughWeb interfaces.The deep Web can be difficult or impossible to searchbecause its informationis not stored on the Web, but in databases that provide resultsonly when a user requestsspecific information through the Web site that maintains thedatabase.Available data that is never requested remains hidden.15.Describe, in general, the function of HTML tags.

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Answer:The tags in an HTMLdocument are interpreted by the Web browser and usedby it to format the display of thetext enclosed by the tags. In HTML, the tags areenclosed in angle brackets (<>).16.Describe, in general, the function of XML tags.Answer:Unlike HTML,XML is not a markup language with defined tags. It is aframework within which individuals, companies, and other organizations can createtheir own sets of tags.Therefore,XML tags do not specifyhow text appears on aWeb page. The tags convey the meaning (the semantics) of the information includedwithin them.17.What is bandwidth and why do people often think of it as a measure ofconnection speed?Answer:Bandwidth is the amount of data that can betransmitted in a fixed amount oftime.The higher the bandwidth, the more data can betransmitted in each second andthe faster Web pages appear on your screen; this is probably why it is thought of as ameasure of connection speed. Each connectionoption offers different bandwidths, andeach ISP offers varying bandwidths for eachconnection option.18.List the Internet connection options that might be suitable for a smallbusiness in an urban location with five employees.Answer:A DS0 leased digital line or a fixed-point wireless connection wouldprobably suitable in this situation.19.What is the main function of a wireless access point?Answer:The main function of awireless access point (WAP) isto transmitnetworkpackets between Wi-Fi-equipped computers and other devices that are withinitsrange.20.What is roaming?Answer:Roaming is the shifting of Wi-Fi devicesfrom one WAP to another withoutrequiringintervention by the user.21.What is mesh routing?Answer:Meshrouting is aversion of fixed-pointwireless that directly transmits Wi-Fipacketsthrough hundreds of short-range transceiversthat are located close to eachother.22.Brieflydescribe the goals of the Internet2 project.

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Answer:Internet2is focused on technology development.As anexperimental testbedfor new networking technologies that is separate from the original Internet,Internet2serves asa proving ground for new technologies and applications of thosetechnologies that willeventually find their way to the Internet.23.List some commercial applications that have emerged from the SemanticWeb research project.Answer: Web browser softwareis software thatlets users read HTMLdocuments andmove from oneHTML document to anotherusinghyperlinks.Web browser softwaresends requests for Web pagefiles to other computers, which are called Web servers.TheWeb server software receives requests from manydifferent Web clients andresponds by sending files back to those Web client computers.Each Web clientcomputer’s Webbrowsersoftwarethenrenders those files into a Web page.Examplesof popular Web browser software include Google Chrome, Microsoft InternetExplorer, and Mozilla Firefox.Exercises1.In a paragraph or two, evaluate the NSF’s 1989 decision to introduce limitedcommercialactivity on the Defense Department network that wouldeventually become the Internet.Answer:In 1989, the NSF permitted two commercial e-mail services, MCI MailandCompuServe, to establish limited connections to the Internet for the solepurposeof exchanging e-mail transmissions with users of the Internet. Theseconnectionsallowed commercial enterprises to send e-mail directly to Internetaddresses, andallowed members of the research and education communities on theInternet tosend e-mail directly to MCI Mail and CompuServe addresses. The NSFjustified thislimited commercial use of the Internet as a service that would primarilybenefit theInternet’s noncommercial users. As the 1990s began, people from all walksof life—notjust scientists or academic researchers—started thinking of these networksas theglobal resource that we now know as the Internet.2.In about 100 words, outline the advantages and disadvantages of usingcircuit-switchedandpacket-switched networks to transmit data.Answer:Responses willvary.Students could mention that circuit-switching is simpleand intuitive and usually once the connection is established performance can beguaranteed. On the downside, a break in any oneof the connected circuits causes thecircuit to be interrupted and data to be lost. With packet switching files and messagesare broken into packets which travel from computer to computeralong theinterconnected networks until they reach their destinations; a dedicated circuit is notneeded. If any packets are missing, thedestination computer can request that thetransmission be resent so it can reconstruct the sent file or message.The main

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disadvantage here is that on the receiving end the packets need to be reassembled.3.In about 100 words, briefly describe the function of each type of router thatmight exist in aninterconnected network.Answer:There are borderrouters, also known as edge routers,arelocated atanorganization’s point ofconnection to theInternet that decide the best path on whichtoforward each packet of information as ittravels on the Internet to itsdestination.Synonymous with gateway computer andgateway router.Backboneroutershandle packet traffic along the Internet’smain connecting points; they caneachhandle more than 50 million packets persecond.Other routers used might berouters that are inside the WANs and LANsor the routersthatconnect them to eachother within theorganization.4.In a paragraph or two,describe how a VPN maintains security over datatransmitted through it.Answer:A virtual private network (VPN) is a connection that uses public networksand their protocols to send data in a way that protects the data as well as a privatenetwork would, but at a lower cost. IP tunneling creates a private passageway throughthe public Internet that provides secure transmission from one computer to another.The passageway is created by VPN software that encrypts the packet content and thenplaces the encrypted packets inside another packet in a process calledencapsulation.The computer that receives the packet unwraps it and decryptsthemessage using VPN software that is the same as, or is compatible with, theVPNsoftware used to encrypt and encapsulate the packet at the sending end.5.In a paragraph, briefly explain the differences between closed and openarchitectures; then,in an additional two or three paragraphs, outline thereasons an open architecture waschosen for the Internet.Answer:The first packet-switched network, the ARPANET, connected only a fewuniversities and research centers. Following its inception in 1969, this experimentalnetwork grew during the next few years and began using the Network ControlProtocol (NCP). In the early days of computing, each computer manufacturer createdits own protocol, so computers made by different manufacturers could not beconnected to each other. This practice was called proprietary architecture or closedarchitecture. NCP was designed so it could be used by any computer manufacturerand was made available to any company that wanted it. This open architecturephilosophy that was developed for the evolving ARPANET, included the use of acommon protocol for all computers connected to the Internet and four key rules formessage handling:Independent networks should not require any internal changes to be connectedto the network.Packets that do not arrive at their destinations must be retransmitted from theirsource network.

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