Laudon traver ec10-ppt_ch03

E-commerce 2014E-commerce 2014
Kenneth C. LaudonKenneth C. Laudon
Carol Guercio TraverCarol Guercio Traver
business. technology. society.
tenth edition
Copyright © 2014 Pearson Education, Inc.Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 3Chapter 3
E-commerce Infrastructure: The Internet,E-commerce Infrastructure: The Internet,
Web, and Mobile PlatformWeb, and Mobile Platform
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

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 of augmented
reality applications? Are there any disadvantages?
 What revenue models could work for providers of
augmented services?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 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

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

The Internet:
Key Technology Concepts
 Internet 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

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

Packet Switching
Figure 3.3, Page 117

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

The TCP/IP Architecture and Protocol Suite

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 handle only 4
billion)

Routing Internet Messages: TCP/IP and
Packet Switching

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
 For example: http://www.azimuth-interactive.com/flash_test

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, and so on

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
 33% of all cell phones

Cloud Computing
 Firms and individuals obtain computing
power and software over Internet
Example: Google Apps
 Fastest growing form of computing
 Radically reduces costs of:
Building and operating Web sites
Infrastructure, IT support
Hardware, software

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

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

The
Hourglass
Model of
the
Internet

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

Internet Network Architecture

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

Intranets
 Intranet
TCP/IP network located within a single
organization for communications and
processing
Used by private and government organizations
for internal networks
All Internet applications can be used in private
intranets

Who Governs the Internet?
 Organizations that influence the Internet and
monitor its operations include:
 Internet Corporation for Assigned Names and Numbers (ICANN)
 Internet Assigned Numbers Authority (IANA)
 Internet Engineering Task Force (IETF)
 Internet Research Task Force (IRTF)
 Internet Engineering Steering Group (IESG)
 Internet Architecture Board (IAB)
 Internet Society (ISOC)
 Internet Governance Forum (IGF)
 World Wide Web Consortium (W3C)
 Internet Network Operators Groups (NOGs)

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?

Limitations of the Current Internet
 Bandwidth limitations
Slow peak-hour service
 Quality of service limitations
Latency
 Network architecture limitations
Identical requests are processed individually
 Wired Internet
Copper and expensive fiber-optic cables

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

The First Mile and the Last Mile
 GENI Initiative
Proposed by NSF to develop new core
functionality for Internet
 Most significant private initiatives
Fiber optic trunk-line bandwidth
 First mile
Wireless Internet services
 Last mile

Fiber Optics and the Bandwidth
Explosion in the First Mile
 “First mile”: Backbone Internet services that carry
bulk traffic over long distances
 Fiber-optic cable: hundreds of glass strands that use
light to transmit data
 Faster speeds and greater bandwidth
 Thinner, lighter cables
 Less interference
 Better data security
 Substantial investments in fiber optic by
telecommunications firms in last decade
 Enable integrated phone, broadband access, video services

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

Wireless Internet Access
Network Technologies
 Wi-Fi
 High-speed, fixed broadband wireless LAN (WLAN)
 Wireless access point (“hot spots”)
 Limited range but inexpensive
 For-profit Wi-Fi networks: Boingo, AT&T Wi-Fi Services
 WiMax
 High-speed, medium range broadband wireless metropolitan area
network
 Bluetooth
 Personal connectivity between devices and to Internet
 Low-speed, short range connection

Wi-Fi Networks

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

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

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
 Example URL:
http://megacorp.com/content/features/082602.html

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

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?

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
 May refer to either Web server software or physical server
 Specialized servers: Database servers, ad servers, and so on
 Web client
 Any computing device attached to the Internet that is capable of
making HTTP requests and displaying HTML pages

Web Browsers
 Primary purpose to display Web pages
 Internet Explorer—54% of market
 Mozilla Firefox—20%
Open source
 Other browsers
Google Chrome—19%
Apple’s Safari—5%

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

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

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

How Google Works

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 one another, 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

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

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

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

 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

 Internet telephony (VoIP)
Voice over Internet Protocol (VoIP) uses
Internet to transmit voice communication
 Video conferencing, video chatting, and
telepresence
 Online software and Web services
Web apps, widgets, and gadgets

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
 Examples: Siri, Google Now

Mobile Apps
 Use of mobile apps has exploded
 More than 60% of online shoppers are mobile shoppers
as well
 Increased use/purchasing from tablets
 Platforms
 iPhone/iPad (iOS), Android, Blackberry
 App marketplaces
 Google Play, Apple’s App Store, RIM’s App World,
Windows Phone Marketplace

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?

Laudon traver ec10-ppt_ch03

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