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E-commerce 2014

Kenneth C. Laudon

Carol Guercio Traver

business. technology. society.

tenth edition

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Chapter 3

E-commerce Infrastructure: The Internet, Web, and Mobile Platform

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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?

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Class Discussion

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AR-VR-MR: Augment My Reality

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Class Discussion

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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

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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Evolution of the Internet 1961–Present

Innovation Phase, 1964–1974

Creation of fundamental building blocks

Packet switching, TCP/IP, Client-server computing

Institutionalization Phase, 1975–1995

Large institutions (NSF, DoD) provide funding and legitimization creating ARPANET

Commercialization Phase, 1995–present

Private corporations take over, expand Internet backbone and local service

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The Internet: Technology Background

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The Internet: Technology Background

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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:

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 117

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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 to deliver packets

Four TCP/IP architecture layers

Network interface or link layer responsible for sending and receiving packets
Internet layer responsible for addressing and routing
Transport layer handles host-to-host communication
Application layer provides an array of applications to users such as HTTP, FTP, SMTP.

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The TCP/IP Architecture and Protocol Suite

Figure 3.4, Page 119

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The Transport layer (also known as the Host-to-Host Transport layer) is responsible for providing the Application layer with session and datagram communication services. The core protocols of the Transport layer are Transmission Control Protocol (TCP) and the User Datagram Protocol (UDP).

UDP is used when the amount of data to be transferred is small (fit into a single packet), or when the overhead of establishing a TCP connection is not desired

The Application layer provides applications the ability to access the services of the other layers and defines the protocols (HTTP, FTP, SMTP) that applications use to exchange data.

The Internet layer is responsible for addressing, packaging, and routing functions. Some core protocols of the Internet layer are IP, and ICMP - Internet Control Message Protocol responsible for providing diagnostic functions and reporting errors due to the unsuccessful delivery of IP packets.

The Network Interface layer (also called the Network Access layer) is responsible for placing TCP/IP packets on the network and receiving them off the network.

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Internet (IP) Addresses

IPv4

32-bit number
Four sets of numbers marked off by periods: 201.61.186.227 or 220.216.178.6

IPv6

128-bit addresses, able to handle up to 1 quadrillion addresses (IPv4 can handle only 4 billion)

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A processor register (CPU register) is one of a small set of data holding places that are part of the computer processor. A register may hold an instruction, a storage address, or any kind of data (such as a bit sequence or individual characters). Some instructions specify registers as part of the instruction.

32-bit often refers to the state at which data is stored, read, and processed. When related to operating systems and processors, this really means how many 1’s and 0’s are being used to represent your data. The more bits that the system can process, the more data that it can handle at once. Back in the day, we were only allowed to create file name of 8 chars maximum. Then when computers moved to 32 bits, we were allowed to have much longer file names. 32 bit allows for 2^32 IP addresses.

The most obvious improvement in IPv6 over IPv4 is that IP addresses are lengthened from 32 bits to 128 bits. This extension anticipates considerable future growth of the Internet and provides relief for what was perceived as an impending shortage of network addresses. 128 bit allows for 2^128 IP addresses.

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Routing Internet Messages: TCP/IP and Packet Switching

Figure 3.5, Page 120

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Domain Names, DNS, and URLs

Domain name (.edu, .com, .org etc) (See figure)

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

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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 other peripherals

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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

33% of all cell phones

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Cloud Computing

Firms and individuals obtain computing power and software over Internet

Example: Google Apps, Salesforce.com

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 alternative to POP
FTP, Telnet for remote connections, SSL (secure socket layer)/TLS (transport layer security) newer alternative to SSL

Utility programs

Ping
Tracert is one of several route/path tracing utilities

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The Internet Today

Internet growth has boomed without disruption because of:

Client/server computing model
Hourglass, layered architecture (next slide)

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 128

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Internet Network Architecture

Backbone

High-bandwidth fiber-optic cable networks
Private networks owned by a variety of NSPs (network service providers)
Bandwidth: 155 Mbps–2.5 Gbps
Built-in redundancy

IXPs (Internet Exchange Points see figure)

Used to be called Metro Area Exchange (MAE) and Regional hubs are interconnecting points for internet traffic.
Now referred to as IXPs.

CANs (campus area networks)

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 129

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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 1.5 mbps and T3 45 mbps (T3 line comprises 28 T1 lines)
Satellite

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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

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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)

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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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Insight on Society: Class Discussion

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Limitations of the Current Internet

Bandwidth limitations

Slow peak-hour service

Quality of service limitations

Latency – delays due to uneven flow of info packets

Network architecture limitations

Identical requests are processed individually (i.e.. Downloading a music track)

Wired Internet

Copper and expensive fiber-optic cables

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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 100 gps 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 (Global Environment for Network Innovations) Initiative

Proposed by NSF to develop new core functionality for Internet with gigabit/terabit bandwidth to households in 20 yrs

Most significant private initiatives

Fiber optic trunk-line (i.e. main tele line) bandwidth

First mile

Wireless Internet services

Last mile (eg. FIOS 50 mbps up and 10 down)

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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
Less interference
Better data security

Substantial investments in fiber optic by telecommunications firms in last decade

Enable integrated phone, broadband access, video services

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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) like at home or the office

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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 (MAE) (e.g., Baltimore, Portland, Houston, Atlanta, Chicago)
More than 250 Chicago schools, libraries and nonprofit organizations use Spring
there is a pending injunction against Sprint who wants to close the Chicago WiMax).

Bluetooth

Personal connectivity between devices and to Internet
Low-speed, short range connection

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Wi-Fi Networks

Figure 3.15, Page 145

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The Future Internet

Latency (delay) solutions

The internet does not distinguish between high-priority and low-priority packets
diffserv is a technology that will be able to do just that.

What’s the down side?

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

Example URL: 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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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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Insight on Technology: Class Discussion

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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 Internet Information Server most used
Basic capabilities: Security services, FTP, search engine capabilities, data capture (e.g. using bar code reader)

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 to display Web pages
Internet Explorer—54% of market
Mozilla Firefox—20%

Open source

Other browsers

Google Chrome—19%
Apple’s Safari—5%

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The Internet and Web: Features

Features on which e-commerce is 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 3.20, Page 161

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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 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

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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

A small text file (up to 4KB) created by a website that is stored in the user's computer either temporarily for that session only or permanently on the hard disk (persistent cookie). Cookies provide a way for the website to recognize you and keep track of your preferences or personal info like credit/debit card #’s
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

Video conferencing, video chatting, 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

Examples: Siri, Google Now, alexa

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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

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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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Insight on Technology: Class Discussion

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