E-Commerce: Business. Technology.

Society

CHAPTER 2

E-commerce
Infrastructure
MSc Ta Minh Thao

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 Learning Objectives
2.1 Discuss the origins of, and the key technology concepts
behind, the Internet.
2.2 Explain the current structure of the Internet..
2.3 Understand how the Web works.
2.4 Describe how Internet and web features and services support
E-commerce.
2.5 Understand the impact of mobile applications

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 The Internet: Technology Background
 Internet
- Interconnected network of thousands of networks and millions
of computers
- Links businesses, educational institutions, government
agencies, and individuals (stakeholders).
- Internet provides services such as e-mail, apps, shopping,
research, music, videos, and news
 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, 1961–1974
- 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
 Internet defined as network that:
- Uses IP addressing
- Supports TCP/IP
- Provides services to users, in manner similar to telephone system
 Three important concepts (basic technological foundations of the
Internet)
- Packet switching (a method of slicing digital message into packets)
- TCP/IP (core communication protocol for the internet)
- Client/server computing (a model of computing that connected
client computers in a network together with one or more servers for
common functions)
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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 the destination
 Uses routers - special purpose computer

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Packet Switching

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 TCP/IP
 Transmission Control Protocol (TCP)
- Establishes connections among sending and receiving computers
- Handles assembly of packets at point of transmission, and
reassembly at receiving end
 Internet Protocol (IP)
- Address allows billions of computers communicate with one
another by sending and receiving TCP packets
 Four TCP/IP layers
- Network interface layer
- Internet layer
- Transport layer
- Application layer
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 Domain Names, DNS, and URLs
 Domain name
- IP address expressed in natural language
- We cannot remember the 32-bit numbers, so we use domain
name which is more natural.
•Domain name system (DNS)
- Allows numeric IP addresses to be expressed in natural language
such as Google.com
•Uniform resource locator (URL)
- Address used by web browser to identify location of content on
the Web
- E.g: http://www.azimuth-interactive.com/
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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, and so on

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 The Mobile Platform
 Primary Internet access is now through tablets and smartphones
 Tablets supplement PCs for mobile situations
 Smartphones are a disruptive technology
- New processors and operating systems that alter e-commerce
landscape.
- In 2019, 3.3 billion people access the Internet using
smartphones

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The Internet “Cloud Computing” Model (1 of 2)
 It is a computing concept where the firms and individuals
obtain computing power and software over Internet.
 A model of computing in that computer processing, storage,
software, and other services are provided as a shared pool of
virtualized resources over the Internet.
 No purchasing and installing needed on our own computers.

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The Internet “Cloud Computing” Model (2 of 2)
 Hybrid clouds offer both public and private cloud options.
 A private cloud hosted internally or externally. It is
operated solely for the benefit of a single tenant.
 Public cloud has NO stringent privacy and security
requirements. E.g: Dropbox
 Radically reduces cost
- Building and operating websites
- Infrastructure, IT support
- Hardware, software

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 Internet Protocols and Utility Programs –
offers internet services
 Internet protocols
- HTTP: internet protocol used to transfer web pages)
- E-mail: SMTP (internet protocol used to send mail to server),
POP3, IMAP.
- FTP (internet services that permits users to transfer files from the
server to client computer, vise versa.
 Utility programs
- Ping (program used to check the connection btw client and server)
- Tracert (route-tracing used to follow the path of message)

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 The Internet Today
The Hourglass Model Of The Internet

 Internet growth has boomed

without disruption because of:
- Client/server computing model,
highly extensible
- Hourglass, layered architecture,
each layer can change without
disturbing other layers. E.g: the
technology to move the message
faster without disturbing desktop
application running.
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The Current Structure of the Internet
Network Architecture

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Limitations of the Current Internet (1 of 2)
 Bandwidth limitations
- Slow peak-hour service (insufficient capacity)
 Quality of service limitations
- Latency: delays due to uneven flow of information packets
and notice in streaming video and telephone call

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 Limitations of the Current Internet (2 of 2)
 Network architecture limitations
- Identical requests are processed individually (the server attends
each request individually).
- Different from television where the programs broadcasted once to
all.
 Wired Internet
- Still using cables where the Copper cables are too old and
expensive fiber-optic cables

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 The First Mile and the Last Mile
 Most significant private initiatives
- Fiber optic trunk-line bandwidth (first mile) –backbone
internet service that carry bulk traffic long distances.
- Wireless internet services (last mile) –carry service from the
larger internet to the user’s smartphone, tablet and laptop.
- How the Internet works, watch more at:
https://www.youtube.com/watch?v=Sfzo4xm5eX8

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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
 Fiber-optic cable: hundreds of glass strands that use light to
transmit data
- Faster speeds and greater bandwidth
- Thinner, lighter cables
Advantages
- Less interference
- Better data security
 Substantial investments in fiber optic by telecommunications
firms in last decade.
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 The Last Mile: Mobile Internet Access
 Last mile: from Internet backbone to the user’s home,
office, computer, smartphone, and so on
 Two basic types of wireless Internet access:
- Telephone-based (mobile phone, smartphones)
- Computer network-based (wireless local area network-
based)

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 Wireless Local Area Network
(WLAN)-based Internet Access (1 of 2)
 Connects client to server within Wi-Fi Networks
local areas (few hundred meters)
 Functions by sending radio signals
broadcasted over the airwaves in
certain radio frequency ranges.
 Wi-Fi
- Evolving highspeed, fixed broadband
wireless LAN (WLAN)
- Wireless access point (“hot spots”)
- Limited range but inexpensive
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 Wireless Local Area Network
(WLAN)-based Internet Access (2 of 2)

 WiMax (high-speed, medium-range of coverage)

 Bluetooth (modest-speed, short-range)
 Internet access drones
- Google, Facebook initiatives to provide internet access to
remote parts of the world.

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“Without the Web, there’s no E-commerce”
 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
 1995: Microsoft Internet Explorer

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 Understand How the Web Works
 These key concepts are important to understand how the
web works.
- Hypertext
- HTTP
- URLs
- HTML
- XML
- Web server software
- Web clients
- Web browsers
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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
- E.g URL http://megacorp.com/content/features/082602.html
- .com known as top-level domains
 URL is the address used by a browser to identify the location
of content on the Web.

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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
- 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

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 Web Browsers
 Primary purpose is to display web page, but may include
added features such as e-mail
- Google’s Chrome: 67% of desktop market, 64% mobile
market (the most popular web browser)
- Mozilla Firefox: 9% desktop, 1% mobile
- Internet Explorer: 8% of desktop, <1% mobile
- Microsoft Edge: 5% desktop
- Apple’s Safari: 4% desktop, 27% mobile (2ndmost popular
mobile browser)

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 The Internet and Web: Features
 How the Internet and Web Features support e-commerce :
- Communication tools
- Search engines
- Downloadable and streaming media
- Web 2.0 applications and services
- Virtual reality and augmented reality
- Intelligent personal assistants

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 Mobile Apps
 Use of mobile apps has exploded
- Have become the most popular entertainment media
- Always present shopping tool
- Almost all of the top 100 brands have shopping
apps
 Platforms
- iPhone/iPad (iOS), Android, Windows Phone
 App marketplaces
- Google Play, Apple’s App Store, Windows Phone
Marketplace
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END OF CHAPTER 2
THANK YOU !

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