E-commerce 2013

business. technology. society.

ninth edition

Kenneth C. Laudon
Carol Guercio Traver
 Chapter 2
E-Commerce Infrastructure: The Internet and the Web,
and Mobile Platform

Copyright © 2013 Pearson Education

 Class Discussion

Google Glass: Augment My Reality

 Have you used any augmented reality applications?
If so, has it been useful; if not, is it a service that
seems interesting? Why or why not?
 Are there any privacy issues raised by augmented
reality applications?
 What are the potential benefits to? Are there any
disadvantages?
 What revenue models could work for providers of
augmented services?

Copyright © 2013 Pearson Education Slide 3-3

The Internet: Technology Background
 Internet
 Interconnected network of thousands of networks
and millions of computers
 Links businesses, educational institutions,
government agencies, and individuals
 World Wide Web (Web)
 One of the Internet’s most popular services
 Provides access to billions, possibly trillions, of
Web pages

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 The Evolution of the Internet
1961–Present
 Innovation Phase, 1964–1974
 Creation of fundamental building blocks

 Institutionalization Phase, 1975–1995

 Large institutions provide funding and legitimization

 Commercialization Phase, 1995–present

 Private corporations take over, expand Internet
backbone and local service

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 The Internet:
Key Technology Concepts
 Defined as network that:
 Uses IP addressing
 Supports TCP/IP
 Provides services to users, in manner similar to telephone
system
 Three important concepts:
 Packet switching
 TCP/IP communications protocol
 Client/server computing

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 Packet Switching
 Slices digital messages into packets
 Sends packets along different communication paths
as they become available
 Reassembles packets once they arrive at destination
 Uses routers
 Special purpose computers that interconnect the computer
networks that make up the Internet and route packets
 Routing algorithms ensure packets take the best available path
toward their destination
 Less expensive, wasteful than circuit-switching

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 Packet Switching

Figure 3.3, Page 123

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 TCP/IP
 Transmission Control Protocol (TCP):
 Establishes connections among sending and receiving Web computers
 Handles assembly of packets at point of transmission, and reassembly
at receiving end
 Internet Protocol (IP):
 Provides the Internet’s addressing scheme
 Four TCP/IP layers
 Network interface layer
 Internet layer
 Transport layer
 Application layer

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The TCP/IP Architecture and Protocol Suite

Figure 3.4, Page 125

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 Internet (IP) Addresses
 IPv4:
 32-bit number
 Four sets of numbers marked off by periods:
201.61.186.227
 Class C address: Network identified by first three sets,
computer identified by last set
 IPv6
 128-bit addresses, able to handle up to 1 quadrillion
addresses (IPv4 can only handle 4 billion)

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 Routing Internet Messages: TCP/IP and
Packet Switching

Figure 3.5, Page 126

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 Domain Names, DNS, and URLs
 Domain name
 IP address expressed in natural language

 Domain name system (DNS)

 Allows numeric IP addresses to be expressed in natural
language
 Uniform resource locator (URL)
 Address used by Web browser to identify location of
content on the Web
 E.g. http://www.azimuth-interactive.com/flash_test

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 Client/Server Computing
 Powerful personal computers (clients)
connected in network with one or more
servers
 Servers perform common functions for
the clients
 Storing files
 Software applications
 Access to printers, etc.

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 The New Client:
The Mobile Platform
 In a few years, primary Internet access
will be through:
 Tablets
 Supplementing PCs for mobile situations

 Smartphones
 Disruptive technology:
 Shift in processors, operating systems

 25% of all cell phones

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 Cloud Computing
 Firms and individuals obtain computing
power and software over Internet
 e.g., Google Apps

 Fastest growing form of computing

 Radically reduces costs of:
 Building and operating Web sites
 Infrastructure, IT support
 Hardware, software

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 Other Internet Protocols and
Utility Programs
 Internet protocols
 HTTP
 E-mail: SMTP, POP3, IMAP
 FTP, Telnet, SSL/TLS

 Utility programs
 Ping
 Tracert

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 The Internet Today
 Internet growth has boomed without
disruption because of:
 Client/server computing model
 Hourglass, layered architecture
 Network Technology Substrate
 Transport Services and Representation Standards
 Middleware Services
 Applications

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 The
Hourglass
Model of
the
Internet

Figure 3.11, Page 134

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 Internet Network Architecture
 Backbone:
 High-bandwidth fiber-optic cable networks
 Private networks owned by a variety of NSPs
 Bandwidth: 155 Mbps–2.5 Gbps
 Built-in redundancy
 IXPs:
 Hubs where backbones intersect with regional and local networks,
and backbone owners connect with one another
 CANs:
 LANs operating within a single organization that leases Internet
access directly from regional or national carrier

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 Internet Network Architecture

Figure 3.12, Page 135

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 Internet Service Providers (ISPs)
 Provide lowest level of service to
individuals, small businesses, some
institutions
 Types of service
 Narrowband (dial-up)
 Broadband
 Digital Subscriber Line (DSL)
 Cable modem
 T1 and T3
 Satellite

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 Intranets and Extranets
 Intranet
 TCP/IP network located within a single
organization for communications and
processing
 Extranet
 Formed when firms permit outsiders to access
their internal TCP/IP networks

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 Who Governs the Internet?
 Organizations that influence the Internet and
monitor its operations include:
 Internet Architecture Board (IAB)
 Internet Corporation for Assigned Names and Numbers
(ICANN)
 Internet Engineering Steering Group (IESG)
 Internet Engineering Task Force (IETF)
 Internet Society (ISOC)
 World Wide Web Consortium (W3C)
 International Telecommunications Union (ITU)

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 Insight on Society: Class Discussion

Government Regulation and

Surveillance of the Internet
 How is it possible for any government to “control” or
censor the Web?
 Does the Chinese government, or the U.S. government,
have the right to censor content on the Web?
 How should U.S. companies deal with governments
that want to censor content?
 What would happen to e-commerce if the existing Web
split into a different Web for each country?

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 The Internet2 Project
 Consortium of 350+ institutions
collaborating to facilitate revolutionary
Internet technologies
 Primary goals:
 Create leading-edge very-high speed network for
national research community
 Enable revolutionary Internet applications
 Distributed and collaborative computing environments
for sciences, health, arts and humanities initiatives

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 The First Mile and the Last Mile
 GENI Initiative
 Proposed by NSF to develop new core
functionality for Internet
 Most significant private initiatives
 Fiber optics
 Mobile wireless Internet services

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 Fiber Optics and the Bandwidth
Explosion in the First Mile
 “First mile”: Backbone Internet services that carry
bulk traffic over long distances
 Older transmission lines being replaced with fiber-
optic cable
 Much of fiber-optic cable laid in United States is
“dark,” but represents a vast digital highway that
can be utilized in the future
 Technology improvement has also expanded
capacity of existing fiber lines

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 The Last Mile: Mobile Wireless
Internet Access
 “Last mile”: From Internet backbone to
user’s computer, smartphone, etc.
 Two different basic types of wireless
Internet access:
 Telephone-based (mobile phones,
smartphones)
 Computer network-based

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 Telephone-based Wireless
Internet Access
 Competing 3G standards
 GSM: Used world-wide, AT&T, T-Mobile
 CDMA: Used primarily in U.S., Verizon, Sprint

 Evolution:
 3G cellular networks: next generation, packet-
switched
 3.5G (3G+)
 4G (WiMax, LTE)

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 Wireless Internet Access
Network Technologies
 Wi-Fi
 High-speed, fixed broadband wireless LAN (WLAN). Different versions for
home and business market. Limited range.
 WiMax
 High-speed, medium range broadband wireless metropolitan area network
 Bluetooth
 Low-speed, short range connection
 Ultra-Wideband (UWB)
 Low power, short-range high bandwidth network
 Zigbee
 Short-range, low-power wireless network technology for remotely
controlling digital devices

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 Wi-Fi Networks

Figure 3.16, Page 153

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 The Future Internet
 Latency solutions
 diffserv (differentiated quality of service)

 Guaranteed service levels and lower error rates

 Ability to purchase the right to move data through
network at guaranteed speed in return for higher fee
 Declining costs
 The Internet of Things (IoT)
 Objects connected via sensors/RFID to the Internet
 Spearheaded by EU and China

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 The Web
 1989–1991: Web invented
 Tim Berners-Lee at CERN
 HTML, HTTP, Web server, Web browser

 1993: Mosaic Web browser w/ GUI

 Andreessen and others at NCSA
 Runs on Windows, Macintosh, or Unix

 1994: Netscape Navigator, first commercial Web

browser
 Andreessen, Jim Clark
 1995: Microsoft Internet Explorer

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 Hypertext
 Text formatted with embedded links
 Links connect documents to one another, and to other
objects such as sound, video, or animation files
 Uses Hypertext Transfer Protocol (HTTP)
and URLs to locate resources on the
Web
 URL e.g.,
http://megacorp.com/content/features/082602.html

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 Markup Languages
 Hypertext Markup Language (HTML)
 Fixed set of pre-defined markup “tags” used to
format text
 Controls look and feel of Web pages
 HTML5 the newest version

 eXtensible Markup Language (XML)

 Designed to describe data and information
 Tags used are defined by user

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 Insight on Technology: Class Discussion

Is HTML5 Ready for Primetime?

 What features of HTML5 are changing
the way Web sites are built?
 Is HTML5 a disruptive technology, and if
so, for whom?
 Are there any disadvantages in Web
sites and mobile apps moving to an
HTML5 platform?

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 Web Servers and Web Clients
 Web server software:
 Enables a computer to deliver Web pages to clients on a network
that request this service by sending an HTTP request
 Apache, Microsoft IIS
 Basic capabilities: Security services, FTP, search engine, data capture
 Web server
 Web server software or physical server
 Specialized servers: Database servers, ad servers, etc.
 Web client:
 Any computing device attached to the Internet that is capable of
making HTTP requests and displaying HTML pages

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 Web Browsers
 Primary purpose to display Web pages
 Internet Explorer—49% of market
 Mozilla Firefox—18%
 Open source

 Other browsers:
 Google Chrome—17%
 Apple’s Safari—11%

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 The Internet and Web: Features
 Features on which the foundations of
e-commerce are built:
 E-mail
 Instant messaging
 Search engines
 Online forums and chat
 Streaming media
 Cookies

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 E-mail
 Most used application of the Internet
 Uses series of protocols for transferring
messages with text and attachments from
one Internet user to another
Instant Messaging
 Displays words typed on a computer almost
instantly, and recipients can respond
immediately in the same way

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 Search Engines
 Identify Web pages that match queries based
on one or more techniques
 Keyword indexes, page ranking
 Also serve as:
 Shopping tools
 Advertising vehicles (search engine marketing)
 Tool within e-commerce sites

 Outside of e-mail, most commonly used

Internet activity

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 How Google Works

Figure 3.22, Page 173

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 Online Forums and Chat
 Online forum:
 Also known as a message board, bulletin board,
discussion board, discussion group, board or forum
 Web application that enables Internet users to
communicate with each other, although not in real time
 Members visit online forum to check for new posts

 Online chat:
 Similar to IM, but for multiple users
 Typically, users log into chat room

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 Streaming Media
 Enables music, video, and other large
files to be sent to users in chunks so
that when received and played, file
comes through uninterrupted
 Allows users to begin playing media files
before file is fully downloaded

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 Cookies
 Small text files deposited by Web site
on user’s computer to store information
about user, accessed when user next
visits Web site
 Can help personalize Web site
experience
 Can pose privacy threat

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 Web 2.0 Features and Services
 Online Social Networks
 Services that support communication among
networks of friends, peers
 Blogs
 Personal Web page of chronological entries

 Really Simple Syndication (RSS)

 Program that allows users to have digital content
automatically sent to their computers over the
Internet

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 Web 2.0 Features and Services
 Podcasting
 Audio presentation stored as an audio file and
available for download from Web
 Wikis
 Allows user to easily add and edit content on Web
page
 Music and video services
 Online video viewing
 Digital video on demand

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 Web 2.0 Features and Services
 Internet telephony (VOIP)
 Voice over Internet Protocol (VOIP) uses
Internet to transmit voice communication
 Internet television (IPTV)
 Video conferencing and telepresence
 Online software and Web services
 Web apps, widgets, and gadgets

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 Intelligent Personal Assistants
 Software that interacts with the user
through voice commands
 Features
 Natural language; conversational interface
 Situational awareness
 Interpret voice commands to interact with
various Web services
 e.g., Siri, Google Now

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 Mobile Apps
 Use of mobile apps continues to explode in 2012
 70% of mobile phone owners research products and
services, 35% have made purchase
 Increased use/purchasing from tablets
 Platforms:
 iPhone/iPad, Android, Blackberry
 App marketplaces:
 Google Play, Apple’s App Store, RIM’s App World, Windows
Phone Marketplace

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 Insight on Technology: Class Discussion

Apps for Everything: The App Ecosystem

 What are apps and why are they so popular?
 Do you use any apps regularly? Which ones,
and what are their functions?
 What are the benefits of apps? The
disadvantages?
 Are there any benefits/disadvantages to the
proprietary nature of the Apple platform?

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