E-Commerce Technology

Areas to be covered
Web Based Tools for Electronic Commerce, Intranet, Composition of Intranet, Business Applications on Intranet, Extranets

The Internet and the World Wide Web

Computer network
Any technology that allows people to connect computers to each other The Internet An interconnected network of thousands of networks and millions of computers, linking businesses, educational institutions, government agencies, and individuals World Wide Web A subset of computers on the Internet

The Internet: Key Technology Concepts

Federal Networking Council definition of Internet highlights three important concepts that are the basis for understanding the Internet: Packet switching TCP/IP communications protocol Client/server computing

Packet Switching
A method of slicing digital messages into packets, sending the packets along different communication paths as they become available, and then reassembling the packets once they arrive at their destination Uses routers: special purpose computers that interconnect the computer networks that make up the Internet and route packets to their ultimate destination Routers use computer programs called routing algorithms to ensure packets take the best available path toward their destination

Packet Switching

TCP/IP (Transmission Control Protocol/ Internet Protocol)

Protocol: A set of rules for formatting, ordering, compressing, and error-checking messages
TCP: Establishes the connections among sending and receiving Web computers, handles the assembly of packets at the point of transmission, and their reassembly at the receiving end IP: Provides the Internets addressing scheme

The TCP/IP Architecture and Protocol Suite

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): addresses used by Web browsers to identify location of content on the Web

Client/Server Computing
Model of computing in which very powerful personal computers (clients) are connected in a network with one or more server computers that perform common functions for the clients, such as storing files, software applications, etc.

The Client/Server Computing Model

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Other Internet Protocols

HTTP: Used to transfer Web pages SMTP, POP, and IMAP: Used to send and receive e-mail FTP: Permits users to transfer files from server to client and vice versa Telnet: Program that enables a client to emulate a mainframe computer terminal SSL: Protocol that provides secure communications between client and server

Utility Programs
Ping: Utility program that allows you to check connection between client and server Finger: Utility program that lets you check who is logged on, for how long and user name Tracert: Utility program that allows you to follow part of a message sent from a client to a remote computer Pathping: Utility program that combines functionality of Ping and Tracert

The Result of a Ping

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Tracing the Route a Message Takes on the Internet

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Intranets and Extranets

Intranet
Interconnected network that does not extend beyond the organization that created it

Extranet
Intranet extended to include entities outside the boundaries of an organization Connects companies with suppliers, business partners, or other authorized users

Public and Private Networks

Public network
Any computer network or telecommunications network available to the public

Private network
A private, leased-line connection between two companies that physically connects their intranets

Leased line
Permanent telephone connection between two points

Virtual Private Network (VPN)

Extranet that uses public networks and their protocols IP tunneling
Effectively creates a private passageway through the public Internet

Encapsulation
VPN software encrypts the packet content and then places encrypted packet inside another packet

VPN software
Must be installed on the computers at both ends of the transmission

Internet Connection Options

Bandwidth
Amount of data that can travel through a communication line per unit of time

Net bandwidth
Actual speed that information travels

Symmetric connections
Provide the same bandwidth in both directions

Asymmetric connections
Provide different bandwidths for each direction

Pieces of the Site-Building Puzzle

Main areas where you will need to make decisions in building a site include:
Human resources and organizational capabilities creating a team that has the skill set to build and manage a successful site Hardware Software Telecommunications Site design

Pieces of the E-commerce SiteBuilding Puzzle

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The Systems Development Life Cycle

Systems Development Life Cycle (SDLC) is a methodology for understanding the business objectives of a system and designing an appropriate solution Five major steps in the SDLC are:
Systems analysis/planning Systems design Building the system Testing Implementation

Web Site Systems Development Life Cycle

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System Analysis/Planning: Identifying Business Objectives, System Functionality, and Information Requirements
Business objectives: a list of capabilities you want your site to have System functionalities: a list of the types of information system capabilities you will need to achieve your business objectives Information requirements: the information elements that the system must produce in order to achieve the business objectives

Contd..

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Systems Design: Hardware and Software Platforms

System design specification: a description of the main components of a system and their relationship to one another. System design can be broken down into two parts: Logical design includes:
Dataflow diagram that describes the flow of information at the site, processing functions that must be performed, and databases that will be used Description of the security and emergency backup systems, and controls that will be used

Physical design: translate the logical design into physical components

A Logical Design for a Simple Web Site

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A Physical Design for a Simple Web Site

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Building the System: InHouse versus Outsourcing

Outsourcing: hiring an outside vendor to provide services involved in building the site The build your own versus outsourcing decision:
Build your own requires team with diverse skill set; choice of software tools; both risks and possible benefits

Host your own versus outsourcing

Hosting: hosting company is responsible for ensuring site is accessible 24/7, for monthly fee Co-location: firm purchases or leases a Web server (with control over its operation), but server is located in at vendors physical facility

Insight on Business: The Small Entrepreneursvinyl LPs Edge Audiophileusa.com: sells rare
Run by its owners (husband and wife team John and Marianne Turton) out of their house, with inventory stored in basement Site originally designed in 1994; by 2002 had become a straggling mess Turtons decided to outsource redesign of Web site Bids ranged from $10,000 to $30,000 New site features graphics, searchable database, and shopping cart

Choices in Building and Hosting

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The Spectrum of Tools for Building Your Own Ecommerce Site

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Costs of Customizing Ecommerce Packages

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Key Players: Hosting/Colocation Services

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