Ecommerce Chap 11

1© Prentice Hall, 2000

Chapter 11Infrastructure for

Electronic Commerce


Learning Objectives

Describe the protocols underlying Internet client/server applications

Compare the functions and structures of Web browsers and servers

Discuss the security requirements of Internet and e-commerce applications, and how are these requirements fulfilled by various hardware and software systems

Describe the functional requirements for online selling and what are the specialized services and servers that perform these functions


Describe the business functions that Web chat can fulfill and list some of the commercially available systems that support chat

Understand the ways in which audio, video and other multimedia content are being delivered over the Internet and to what business uses this content is being applied

Learning Objectives (cont.)


A Network of Networks = Internet

Internet is a network of hundreds of thousands interconnected networks

Network Service Providers (NSPs) runs the backbones

Internet Service Providers (ISPs) provide the delivery subnetworks


Internet Network Architecture

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ISP

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Backbone5

© Prentice Hall, 2000


Internet ProtocolsProtocols - A set of rules that determine how two

computers communicate with one another over a network The protocols embody a series of design principles

Interoperable— the system supports computers and software from different vendors. For e-commerce this means that the customers or businesses are not required to buy specific systems in order to conduct business.

Layered— the collection of Internet protocols work in layers with each layer building on the layers at lower levels.

Simple— each of the layers in the architecture provides only a few functions or operations. This means that application programmers are hidden from the complexities of the underlying hardware.

End-to-End— the Internet is based on “end-to-end” protocols. This means that the interpretation of the data happens at the application layer and not at the network layers. It’s much like the post office.


TCP/IP Architecture

Application LayerFTP, HTTP, Telnet, NNTP

Transport Layer

TransmissionControl Protocol

(TCP)

UserDatagram Protocol

(UDP)

Internet Protocol(IP)

Network Interface Layer

Physical Layer



TCP/IP

Solves the global internetworking problemTransmission Control Protocol (TCP)

Ensures that 2 computers can communicate with one another in a reliable fashion

Internet Protocol (IP) Formats the packets and assigns addresses

packets are labeled with the addresses of the sending and receiving computers

1999 version is version 4 (IPv4) Version 6 (IPv6) has just begun to be adopted


Domain Names

Reference particular computers on the InternetDivided into segments separated by periods

For example, in the case of “www.microsoft.com”“www” is the specific computer“com” is the top level domain“microsoft” is the subdomain

Internet Assigned Numbers Authority (IANA)controls the domain name system

Network Solutions, Inc. (NSI)issues and administers domain names for most of the top

level domains


Internet Client/Server Applications

Application Protocol PurposeE-mail Allows the transmission of text

messages and binary attachments across the Internet.

Simple Mail Transport Protocol (SMTP)Post Office Protocol version 3 (POP3)Multipurpose Internet Mail Extensions (MIME)

File Transfer

File Transfer Protocol (TP) Enables files to be uploaded and downloaded across the Internet.

Chat Internet Relay Chat Protocol (IRC) Provides a way for users to talk to one another in real-time over the Internet. The real-time chat groups are called channels.

UseNet Newsgroups

Network News Transfer Protocol (NNTP) Discussion forums where users can asynchronously post messages and read messages posted by others.

World Wide Web (Web)

Hypertext Transport Protocol (HTTP) Offers access to hypertext documents, executable programs, and other Internet resources.


New World Network: Internet2

Two consortiums are in the process of constructing the ‘new world network’ The University Corporation for Advanced Internet

Development (UCAID) www.ucaid.eduBuilding a leading edge research network called Internet2Based on a series of interconnected gigapops

• interconnected by the National Science Foundation’s very high performance Backbone Network (vBNS) infrastructure

Goals of Internet2• to connect universities so that a 30 volume encyclopedia

could be transmitted in less than second• to support applications like distance learning, digital

libraries, video teleconferencing, teleimmersion and collaborative tools, and virtual laboratories


New World Network: Next Generation Internet

Next Generation Internet (NGI)Government initiated and sponsoredStarted by the Clinton Administration, this initiative includes

government research agencies, such as: • the Defense Advanced Research Projects Agency (DARPA)• the Department of Energy• the National Science Foundation (NSF)• the National Aeronautics and Space Administration (NASA)• the National Institute of Standards and Technology

Aim of the NGI• to support next generation applications like health care, national

security, energy research, biomedical research, and environmental monitoring


Web-based Client/ServerWeb browsers servers need as way to:

Locate each other so they can send requests and responses back and forth

Communicate with one another

Uniform Resource Locators (URLs) A new addressing scheme Ubiquitous, appearing on the web, in print, on billboards,

on TV and anywhere else a company can advertise Default syntax - www.Anywhere.Com Complete syntax - access-method://server-name[:port]/directory/file


Web-based Client/Server (cont.)

Hypertext Transport Protocol (HTTP) A new protocol Lightweight, stateless protocol that browsers and

servers use to converse with one another Statelessness - every request that a browser makes opens a

new connection that is immediately closed after the document is returnedrepresents a substantial problem for e-commerce applicationsan individual user is likely to have a series of interactions with the

application

MIME (Multipurpose Internet Mail Extension)describes the contents of the documentin the case of an HTML page the header is “Content-type: text/html”


Web Browsers (1999 Generation)

IE 4.6 suite of components consists of the browser along with the following tools:

Outlook Express for e-mail readingFrontPage Express for authoring of HTML Web pagesNet Meeting for collaboration

Netscape Navigator 4.6 suite consists of the browser plus the following components:Messenger for e-mail readingComposer for authoring HTML Web pagesCollabora for news offeringsCalendar for personal and group schedulingNetcaster for push delivery of Web pages


Web Servers: A Software Program

http daemon in Unix; http service in Windows NT Functions:

service HTTP requestsprovide access control, determining who can access

particular directories or files on the Web serverrun scripts and external programs to either add

functionality to the Web documents or provide real-time access to database and other dynamic data

enable management and administration of both the server functions and the contents of the Web site

log transactions that the user makes

Distinguished by :platforms, performance, security, and commerce


Internet Security

Cornerstones of Security Authenticity

the sender (either client or server) of a message is who he, she or it claims to be

Privacythe contents of a message are secret and only known to the

sender and receiver Integrity

the contents of a message are not modified (intentionally or accidentally) during transmission

Non-repudiationthe sender of a message cannot deny that he, she or it actually

sent the message


MessageText

CipheredText

MessageText

Sender Receiver

Encryption Decryption

Private Key Private Key

Encryption

Private Key Encryption (Symmetrical Key Encryption)Data Encryption Standard (DES) is the most widely used

symmetrical encryption algorithm


MessageText

CipheredText

MessageText

Sender Receiver


Public Key of Recipient

Private Key ofRecipient

Public Key Encryption (Asymmetrical Key Encryption)

Encryption (cont.)


Encryption (cont.)

Digital Envelope — combination of symmetrical and public key encryption

MessageText

CipheredText

MessageText

Sender Receiver


Session Key Session Key

Public key of Recipient

Public key of RecipientSession Key Session Key

Digital Envelop


MessageText

MessageText

Sender Receiver


Public Key of Recipient

Private Key ofRecipient

Digital Signatures : Authenticity and Non-Denial

Signature Signature

Private Key of Sender

Public Key of Sender

CipheredText

Encryption (cont.)


Digital Certificates andCertifying Authorities

Digital Certificates Verify the holder of a public and private key is who

he, she or it claims to be

Certifying Authorities (CA) Issue digital certificates Verify the information and creates a certificate that

contains the applicant’s public key along with identifying information

Uses their private key to encrypt the certificate and sends the signed certificate to the applicant


Secure Socket Layer (SSL)

A protocol that operates at the TCP/IP layerEncrypts communications between browsers

and serversSupports a variety of encryption algorithms

and authentication methodsEncrypts credit card numbers that are sent

from a consumer’s browser to a merchants’ Web site


Secure Electronic Transactions (SET)

A cryptographic protocol to handle the complete transaction

Provides authentication, confidentiality, message integrity, and linkage

Supporting features Cardholder registration Merchant registration Purchase requests Payment authorizations Payment capture

Chargebacks Credits Credit reversal Debit card transactions


Access Control

Password Protection Passwords are notoriously susceptible to

compromiseUsers have a habit of sharing their passwords with

others, writing them down where others can see them, and choosing passwords that are easily guessed.

Browser transmits the passwords in a form that is easily intercepted and decoded. By making sure that even if the passwords are compromised the intruder only has restricted access to the rest of the network; which is one of the roles of a firewall.


Firewalls A network node consisting of both hardware and software that

isolates a private network from a public network Make sure that even if the passwords are compromised the intruder

only has restricted access to the rest of the network Two types

Dual-homed gatewaybastion gateway connects a private internal network to outside Internetproxies (software programs) run on the gateway server and pass

repackaged packets from one network to the other Screen-host gateway

screened subnet gateway in which the bastion gateway offers access to a small segment of the internal network

demilitarized zone is the open subnet


Screened Subnet Firewall

InternetRouter Local

Network

BastionHost

Proxies:FTP, HTTP,

NNTP,Telnet

Router

FTP Server

Web Server



Virtual Private Networks (VPN)

A VPN combines encryption, authentication, and protocol tunneling to provide secure transport of private communications over the public Internet. It’s as if the Internet becomes part of a larger enterprise wide area network (WAN). In this way, transmission costs are drastically reduced because workers can access enterprise data by making a local call into an ISP rather than using a long distance phone call.


Virtual Private Networks (VPN) (cont.)

Real challenge of a VPN To ensure the confidentiality and integrity of the data transmitted

over the Internet

Protocol tunneling Support multi-protocol networking To encrypt and encapsulate the data being transmitted Types of protocol — being used to carry out protocol tunneling

protocols are aimed primarily at site-to-site VPNs (e.g. IPV6)protocols are used to support VPNs that provide employees,

customers, and others with dial-up access via an ISP (e.g. Microsoft’s Point-to-Point Tunneling Protocol (PPTP))


Selling on the Web

Function Requirements for an Electronic Storefront Search for, discover, and compare products for purchase Select a product to be purchased and negotiate or determine its

total price Place an order for desired products Have their order confirmed, ensuring that the desired product is

available Pay for the ordered products (usually through some form of credit) Verify their credit and approve their purchase Have orders processed Verify that the product has been shipped Request post-sales support or provide feedback to the seller


Selling on the Web (cont.)

Electronic storefront must contain: A merchant system or storefront that provides the

merchant’s catalog with products, prices and promotions

A transaction system for processing orders and payments and other aspects of the transaction

A payment gateway that routes payments through existing financial systems primarily for the purpose of credit card authorization and settlement


Outsourcing Vs. Insourcing Insourcing— build and run the electronic storefront inhouse

Large companies wanting: • to “experiment” with e-commerce without a great investment• to protect their own internal networks• to rely on experts to establish their sites

Outsourcing— contract with an outside firmSmaller or medium sized companies with few IT staff and smaller

budgetsThree types of providers

• Internet Malls— offers cross-selling from one store to another and provides a common payment structure

• Internet Service Providers— focused on operating a secure transaction environment; not on store content

• Telecommunication Companies— includes the full range of e-commerce solutions


Electronic Catalogs and Merchant Servers

The virtual equivalents of traditional product catalogs Commonly include:

Templates or wizards for creating a storefront and catalog pages with pictures describing products for sale

Electronic shopping carts that enable consumers to gather items of interest until they are ready for checkout

Web-based order forms for making secure purchases (either through a SSL or a SET)

Database for maintaining product descriptions and pricing, as well as customer orders

Integration with third party software for calculating taxes and shipping costs and for handling distribution and fulfillment


Electronic Catalogs and MerchantServers (cont.)

Internet

WebServer

FinancialNetwork

Merchant Server Architecture

3rd PartyApplications

WebBrowser

StoreHTML Pages

MerchantServer

DatabaseCatalogOrder




Two of the best known products in this category iCat Electronic Commerce Suite

Standard edition includes:• Catalog templates• Shopping carts• Product searching

Professional edition provides support for:• High-end databases• Integration with ISAPI and Netscape's NSAPI• Options for third-party plug-ins for searching, user tracking,

sale pricing, discounting, etc.

• Cross selling• Secure payment processing



Microsoft’s Site Server Commerce EditionFeatures of this product are:

• Commerce Sample Sites providing templates for complete applications• Microsoft’s Wallet supporting a variety of digital currencies• Site Builder Wizard for stores with multi-level departments• Commerce Server Software Development Kit (SDK) for developing

custom-order processing• Order processing pipeline for managing orders according to specified

business rules• Microsoft’s Wallet Software Development Kit (SDK) for supporting a

variety of digital payment schemes• Promotion and Cross-selling Manager for administering a range of

specialized promotions, discounts,cross-selling opportunities• Integration with Microsoft’s Web site development (e.g. Visual InterDev)

and administrative tools (e.g. NT Security Support)


Electronic Commerce Suites

Offer merchants greater flexibility, specialization, customization and integration in supporting complete front and back-office functionality

Internet

CatalogApplication

CustomerManagement,Registration,

Profiles, Service

Order Capture,Completion Fulfillment

SystemsPayment

Processing(SET & Purchase

Order)

CatalogDatabase

CustomerDatabase

OrderDatabase

PaymentDatabase

FinancialNetwork

WebBrowser Web

Server

Open Market E-Commerce Server Architecture


Open Market (www.openmarket.com)

One of the market leaders in the electronic commerce software segment

Provides a compete set of end-to-end transaction services including:Analysis and ProfilingDemand GenerationOrder ManagementFulfillmentPaymentSelf-ServiceCustomer ServiceReporting


Chatting on the Web

Varied uses of the forums and chat groups Communication Centers

a virtual meeting place where communications can take place among the participants

Customer Serviceoffer online support where customers can converse with

help-line staff and receive advice

Community Discussionprovide forums and chat services with a marketing eye

toward developing a community of loyal users, followers and advocates


Multimedia DeliveryWebcasting— describes Internet-based broadcasting of audio and

video content Types of Webcasts

Text Streams— Text-only wordcasts and datacasts• to deliver constant news and stock price updates

Ambient Webcasts— Video content• is captured from a Webcam and delivered as single-frame updates that are

transmitted at periodic intervalsStreaming Audio— Web equivalent of radio

• to deliver everything from talk radio to sports broadcasts to music previews to archived music and radio shows

Streaming Video• to deliver videoconferences where high quality images are not required and

there is not much movement among participants


Webcasting

Works in a straightforward way Examples of companies offering both Webcast servers and players

RealNetworks ( www.real.com )Liquid Audio ( www.liquidaudio.com )Xingtech with its streamworks technology ( www.xingtech.com )Apple with its QuickTime system ( quicktime.apple.com )Microsoft with its Netshow software (www.microsoft.com/windows/windowsmedia )

Multicastingstream a Webcast from a central server to other media servers which are distributed to

different locationswhen a listener or viewer clicks on a Webcast link they are automatically routed to the

closest server


Bandwidth Requirements for Streaming Audio and Video

Bandwidth [1 mbps = 1 million kbps]the speed with which content can be delivered14.4 kbps to 56 kbps for connecting to the Internet over

the telephone through modems128 kbps for connecting to the Internet over ISDN

telephone lines1 - 1.5 mbps for connecting to the Internet over digital

subscriber line (DSL)10 mbps for downloading over cable wires

To download a standard Web page, say around 400,000 kilobits;

56 kbps modem takes about 7 secondsCable modem takes about 0.04 seconds


Internet Telephones

Internet phonesprograms that let you talk with other people using the

Internetthe added cost to the end user is at best zero and at

worst a substantially lower total charge than a standard telephone call

PC-to-PC; PC-to-phone; and phone-to-phonevendors who dominate the Internet telephone market

space• VocalTec ( www.vocaltec.com )• IDT ( www.met2phone.com )• Delta Three ( www.deltathree.com )


Analyzing Web Visits Access logs file

Text file, example :www.somewhere.com - [18/Aug/1998:12:00:00 +0000] “Get /a htm HTTP/1.0” 200 15000

Telling you which pages are most popular, which times are most popular, which geographical regions make the most requests, and other interesting tidbits that help site administrators maintain and refine their sites

Software for analyzing access log files (FREE) net.Analysis form net.Genesis ( www.netgen.com ) Insight form Accrue ( www.accrue.com ) Web Trends Log Analyzer from Web Trends Corporation (

www.egsoftware.com )


Managerial Issues

Now or later— the question is no longer “Will” but “When”It’s the business issues that count— to succeed, a

business must understand how to meet the needs of their online customers

In-house or outsource— mainly depends on the company size

Analyzing the data— automatic record of everyone who visits your Web site

Security— management takes every precaution to ensure the security of their sites and their communications with site visitors

Evolving Web— rapid change of the underlying standards, protocols and governance

Ecommerce Chap 11

Education

Transcript of Ecommerce Chap 11