 Welcome back everyone. We've been talking about how businesses are using IT and I have mostly given an example of how small businesses use IT because even the smallest business nowadays uses information technology quite a lot quite often at least in terms of cash registers and things like that and a lot of small businesses also improve their business by using the internet and resources on the internet like social media to market or help people be aware of what they're doing. Okay so now I want to talk a little bit about bigger businesses. So in a bigger business most people think back about what businesses actually provide. So bigger businesses might have a product but they also probably have some sort of service right. So can I say it's somewhat rare to just have a business that only produces products. A lot of businesses in a lot of countries are services actually service-oriented businesses. Okay so these companies use IT in a lot of different ways. I'm just going to generalize this. So imagine a normal business. Any business office you go to just like a small business is probably going to have a computer where their computer is a personal computer that they use to do a lot of different things. This is similar to a cash register in a very small business. So a very large business if they don't have a product that they're selling they probably don't have a cash register. But they probably have computers for each employee or almost every employee. Then they also most likely have the internet. So internet is really indispensable for major businesses these days. At least one or several departments in the organization need access to the internet. Maybe not all of them, most of them. So a computer for each employee probably. Internet available to almost everyone. And then on the back end, so these are actually kind of, can I say client side services. Right so we provide a computer to the employee. If the company's nice they provide the computer to the employee. They provide the internet to the employee. These are services for the client or the person who's doing the work. Okay but on the back end, what we call the back end, there's actually a lot going on. Okay so if a company especially large companies providing computers to each employee they probably have some sort of authentication server. Right so authentication server that keeps track of all of the computers who's logging in who is allowed to log in and what can they do. So the authentication server whenever somebody is on their computer they want to log in. They check with the authentication server if they can log in then they can get access to the computer. If they can't they get logged out. Most businesses offer some sort of authentication mechanism to get on to their IT systems. This is good for a lot of different reasons because imagine that I'm working with a customer list. So imagine this is a list of all of my customers. I don't want just anyone to be able to walk into my office and get on my computer. Right so if there's a customer list located on this computer we want to restrict access to who's allowed to have access to that customer list. Right so then you need the actual login password username to get access to the customer list. So for example, okay so the back end we have authentication server but for these to talk to each other we also need a local network. Right so some sort of networking infrastructure so that way the computers and servers can actually talk to each other. This is kind of like in your home you probably have an access point that connects into the wall and then you get internet from that access point. That is a piece of networking equipment that gives you basically puts your phone or your computer on the same network as other devices. So you can connect your laptop you can connect your phone all in the same network and then all of those devices can connect to the internet. So companies also have that kind of infrastructure except a lot more advanced. Okay I might show you some technology in a second and I would grab it. So they have the authentication server they need a way to talk to each other so they have a local network and then they probably have some sort of storage on the network so I'll say network a network accessible storage. Right so and these are all also services that are provided by the company so the company gives everyone a computer we have a local network we have authentication server we have some sort of storage and then actually connection to ISP the internet service provider that provides the internet. Okay now this is more of a common type of scenario that you would find in a major business or even a even a medium fairly large-sized business this is what you would normally find with a very large business you'll find the same thing except split up into smaller units that are actually manageable. Once networks get too big or there's too many devices on a network becomes harder to manage them so then you have to usually we split them up into smaller groups and then connect all the groups together in different ways depending on what they need. Okay so this is what we would call the infrastructure and the infrastructure is actually the devices that are on the network that support whatever the business is trying to do. So how does the computer support what the business is trying to do people can send emails business emails people can make word documents excel spreadsheets things like that from their computer. Okay well how does the authentication server support the business? Well if this person for example whoever's on computer A if they move to computer B the authentication server can say yeah you can have access to both of them because you're okay on the network or maybe we want to restrict them to only one computer likewise with an authentication server network storage and a local network this person can log into computer A and get all of their files if they move to computer B they can also get all of their files right so no matter where they move to they have access to company documents that they need while at the same time restricting everyone else so no one else can get access to confidential documents. Okay so there's lots of different reasons I guess why this supports whatever the business is trying to do so local network help communication help two people actually work with each other for example over the network we can send data instead of having to walk to somebody's office and hand them a document. Okay storage lots of reasons we would use storage and then ISP because all of the services that we're going to access that are outside of our our company are going to be online or on the internet or we're going to try to communicate with other organizations for example stock management companies to be able to order more stock okay so this is about the infrastructure and next I'll talk about or maybe I can cover it really quickly other than infrastructure once we have infrastructure in place then we have people that can use technology right we can use technology to do whatever it is that the business is trying to do but we can also use information technology to change the way we interact with our customers so for example the internet gives us a reach or it gives us access to a lot of people that's one of the great things about the internet is we can access billions of people pretty much immediately okay so this opens up new types of business opportunities for example before if I opened a shop in Chuncheon right so I have a dress shop in Chuncheon the only people that that can come to my shop are the people in Chuncheon right and I don't know I'll give them a hat are the people in Chuncheon and maybe people who are visiting Chuncheon right so it's going to actually be very difficult for my shop in Chuncheon to be very well known unless I'm doing something really interesting or I have a really good product and then a lot of people come and see it it's going to be hard for me to be found okay so then my customers are going to be maybe you know a thousand people possible of which maybe five percent actually come and buy something in my shop okay so I have a limited number of customers that are likely to come to my shop okay with the internet that completely changes so imagine I have this this dress shop or whatever it is and I put it on the internet okay how many how many people might come to my website or might buy one of my dresses as long as I put it on the internet well anyone now all of Korea can potentially can potentially act this is Korea by the way so okay so this is Korea I'm in Chuncheon but now everyone in Korea can actually access my shop through the through the internet so then now my customer base rose from 1,000 to you know 40 million okay now um is it only Korea no now because I'm already on the internet I already have a website if I make my website in Chinese now I can access all of China I'm just imagine this is China I can access all of China and they can connect to the internet and come to my shop so now I have all Chinese people who may be able to purchase something from my shop if I make it in English German French then now I can get Germany I can get the a lot of French-speaking countries Spain Spanish Spanish is I think the number one spoken language in the world number two something like that lots of speak people speak Spanish so the more languages my website supports the more people can potentially come to my site and buy something whereas before I was limited to a physical location and they had to actually walk into my shop to buy something so the internet helps us to have a massive massive reach now imagine that in my shop I was selling a dress okay so I'm selling this dress really bad weird looking dress okay I'm selling this dress and this dress is 200,000 won okay which is pretty expensive for a dress right whenever people come in I might maybe maybe in a in a month two people buy the dress okay so I made 400,000 won off of this dress in one month okay that might cover my costs it might not cover my costs depending on how expensive rent is but if I'm online first off I have access to a lot more people so if two people out of 1,000 actually buy my dress then that means that more people online are more likely to buy my dress the other thing it does is now how do I how do I say this we can either sell one thing in a re that that's really expensive to make money or we can sell a lot of small things and make a little bit of money right so there's two kind of basically two business models either one thing that's really expensive or a bunch of small things that are very cheap but I can sell a lot of them right we'll talk more about this kind of business model later basically with these kinds of shops because it takes space because it takes work I put the price of the dress up so I have one thing that's really expensive and I don't get a lot of people into my shop so I have to basically say okay people are only going to buy something that's really nice really good quality so I have to make it really expensive okay well on the internet you have access to a lot more people so imagine that one million people want to buy something that you produce and on whatever it is that you make you make a sticker or something like that you charge a ton one so one thousand one and you can sell one million of them and it costs you five hundred one to produce it well you just made if you can sell it you made five hundred million one right because you were able to sell so many of these very very tiny things you still made a lot of money right and this kind of business model is really easy to do on the internet but it's really hard to do in real life i'm not real life like in a real space right in Chunshan first off not a lot of people come maybe for tourism a little bit but you have to be positioned in a really really good place where a lot of people will walk by if you want to sell a lot of things okay but not every shop can be in the best places so if they're a little bit hidden they can never do this kind of business model because they don't get enough traffic but on the internet if you have a million people come to your website and they're all willing to buy something that's very cheap then you still make a lot of money even after your costs because of just so many people bought something okay so i'll talk actually more about this business model probably in the the next week but think about the internet and how can i say this companies all companies all companies that are really trying to change their business get it access to more customers and make a lot more money are trying to use the internet to basically get an audience a lot of people that are willing to spend relatively small amounts of money sometimes a lot of money but mostly relatively small amounts of money and in mass so if you can have this kind of business model then people will continue to pay small amounts of money because they're more likely to pay a little bit than a lot then you can make a lot of money over time because you have access to more people okay versus making one really really quality product but very few people are going to buy it because it's too expensive right so think about your business model sometimes making a quality product and selling it in an expensive way is a good business model because maybe a lot of people are making a cheap product and selling a lot of them right so if this space is already taken the quality product might be the better business model but the internet makes it much easier to choose which one do you want to do because before it was really hard to get access to this many people I just wanted to talk a little bit about how companies are using IT not only in terms of infrastructure in their own organization but also the way that they're using IT and the internet specifically to get access to different customers okay so that's it for today thank you very much