ELC 200 Day 3 & 4. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall2 Agenda Assignment...

ELC 200

Day 3 & 4

2WWWWWW Awad –Electronic Commerce 2/e© 2004 Pearson Prentice Hall

Agenda• Assignment #1 Due

– Students must record on all submitted materials their name, instructor name(s), course and assignment number, and date of submission.

• Quiz # 1 on Jan 28– Chap 1-3 of text– 15 M/C (60 Points), 4 Short Essay (40 Points)

• Today we’ll discuss the Internet and the World Wide Web

WWWWWW

Chapter 2

The Internet and the World Wide Web


OVERVIEW• Introduction• Usage of Internet• Limitations• Ease of Searching Online• Bulletin Board Systems vs. Pay Services• Web Fundamentals• Internet Language• Implications for Management

WWWWWW


Introduction

• Significance of Internet

• History of Internet Development

• World Wide Web (WWW)

• Internet Service Providers (ISPs)

• Reliability and Stability of the Web


Significance of Internet

• How much has Internet changed your company’s infrastructure?– Among 150 IT managers:

WWWWWWSource: Informationweek, Apr. 3, 2000, p. 165.


History of Internet Development

• 30-year History since 1969– Pentagon and Cold War

• Original Use: – Military installations

– Universities

– Business firms with defense department contracts

• Initial Goal: – Design a network that maintains the safe transition of

data between military computers


EventsDate Event

1969 ARPAnet

1984 MILNET & ARPANET (Internet)

1980s National Science Foundation (NSF) controlled Internet Access

1991 NSF eased restrictions on Internet Access

1995 U.S. government relaxed entry into Internet for the public -- Beginning of eCommerce


Exponential Growth in Network Bandwidth

Year Bandwidth

1969 9.6 Kbps

1985 54 Kbps

1987 1.544 Mbps (T1 speed)

1989 45 Mbps (T3 speed)

1995 155 Mbps

1997 622 Mbps

1998 1,024 Mbps

2000 2,048 Mbps

Growth rate:

> 210, 000 times


World Wide Web

• An organization of files designed around a group of services on Internet

• Programmed to handle requests from browser software resided on users’ PCs– Browser: a program that allows pictures and texts

of a document to be viewed. E.g. Netscape and IE


EventsDate Event

03/89 WWW project was originated by Timothy Berners-Lee

11/90 A revised version of project by NeXT computer

03/91 Release of WWW for testing

09/93 Release of 1st version of Marc Andreessen’s Mosaic by NCSA

10/93 > 500 known HTTP servers in operation

10/94 > 10,000 know HTTP servers in operation


Internet Network ArchitectureBackbone

e.g. High-Speed Backbone Network operated by MCI

Network Access Points (NAPs)e.g. New York (Sprint)

Regional Networkse.g. AOL, AT&T

Regional ISPsi.e. Local Providers

User Levele.g. University / Corporate Networks


Internet Service Providers

• ISPs offer:– Linking consumers and businesses to Internet– Payment system for online purchases– Monitoring and maintaining a customer’s Web

site– Network management and system integration– Backbone access services for other ISPs


Reliability and Stability of Web

• Internet Society (ISOC)– Works with ISPs by providing information to

prospective users and attracts product developers

• Internet Architecture Board (IAB)– Focuses on TCP/IP and other protocols


Usage of Internet

• Marketing and selling products/services– E-commerce

• 1000’s of companies > $1 million sales• In order of revenue

– B2B, Government Agencies, Universities, B2C

– Failures• 2/3 out of 100,000 companies

• Speed of doing business– 24/7


Usage of Internet (Cont’d)

• Complimenting existing brick and mortar business– ‘Who we are’

• Sale promotion• Customer awareness

• Gathering opinions and trying out new ideas– Online Opinion Polls



• Equal Opportunity for all Business– Allow competitions with larger companies

• Mass Distribution– ‘Marketing heaven’– Ease of update

• Paper-free Environment



• Customer Service and Support Resource– Use of FAQ

• Efficiency and Unequaled Cost-effectiveness– For niche products / services– Provide information

• Managerial Tool– Use of e-mail



• Logistics, Research and Development– Chat rooms, online interactive sessions– Market research firm

• Presence Triggers Business– E.g. B2C, B2G

• Good Education and Information Tool


Who’s Online?

1521

3038 41

48 5156

0

10

20

30

40

50

60

Million

1996 1997 1998 1999 2000 2001 2002 2003

Year

U.S. Population Online

Source: Peterson, Andrea, ‘Lost in the Maze.’ Wall Street Journal, Dec 6, 1999, p. R6


Who’s Online? (Cont’d)

0%

10%

20%

30%

40%

50%

60%

BooksCDs, Tapes, Albums

SoftwareAir Tickets

ClothingVideos

Hotel Reservations

Percentage of Online Customers Who Buys the Following Products/Services

Source: Peterson, Andrea, ‘Lost in the Maze.’ Wall Street Journal, Dec 6, 1999, p. R6


Limitations• Security and Privacy

– 20% met Federal Trade Commission (FTC) standards for protecting consumer privacy

– 90% compliance rate by Internet companies for posting their privacy policies

– FTC ‘Fair Information’ Principles:• Notice/Awareness

• Choice/Consent

• Access/Participation

• Security/Integrity

Source: Simpson, Glenn R., ‘FTC Finds Web Sites Fail to Guard Privacy.’ Wall Street Journal, May 11, 2000, p. B12


Limitations (Cont’d)• Rash of Fake IDs

– Online sale of fake identification documents– Accounts for > 30% of all fake documents in U.S.– Three levels of fake ID procurements:

• Sell real-looking documents in customer’s name

• Sell templates that allow customers to make their own phony documents

• Do-it-yourself counterfeiter

Source: Associate Press, May 20, 2000, p. A1ff


Limitations (Cont’d)

• Threats of Hackers and Viruses– Threaten the integrity of Internet files and

transactions– Hacking schools and Virus software

• Stressed Out Networks– Pressure to upgrade and maintain more

complex networks



• Fulfillment– Merchant’s link with vendor– Responsiveness

• Struggling Small Business– Cost of maintaining and upgrading– Security



• Customer Relations– Heavy demand on customer service

• Products Having No Online Demand– E.g. Houses, cars

• Regulated Products– E.g. Alcohol

• Shortage of E-literate People


Ease of Searching Online

• Search Engines – Registration

• www.selfpromotion.com

– Optimization• http://www.bruceclay.com/web_rank.htm

• Bookmark• Revisiting

– 8-second Rule


Bulletin Board Systems vs. Pay Services

• BBSes:– Allow local people to exchange information

free of charge– E.g. e-mail, netnews– Through subscription, e.g. AOL, Prodigy

• Pay Services:– Provide e-mail, interactive talking, etc.– Include security software


Web Fundamentals

• World Wide Web (WWW)– Global hypertext network of millions of Web

servers and browsers– Connected by Hypertext Transfer Protocol (HTTP)– Web pages can be designed by Hypertext Markup

Language (HTML)


Web Fundamentals (Cont’d)

• Uniform Resource Locator (URL)– E.g. http://www.virginia.edu– http:// - protocol – www.virginia.edu - server name

• www means the network is located on a dedicated Web server somewhere

• Virginia is the name of the Web site requested

• edu indicates the site is an educational institution


Web Fundamentals (Cont’d)

• Security Protocols– Secure Socket Layer (SSL)

• Most widely used

• Developed by Netscape Communications

– Secure HTTP (S-HTTP)• Allows Web clients and servers to specify privacy

capabilities independently of one another


Internet Language

• Provider– ISP– An organization providing an entrance ramp to

Internet

• Browser– A software program loaded in a PC allowing

user to access Internet

• Server– Destination point on Internet


Internet Language (Cont’d)

• Telnet– A basic Internet service allowing users to

access remote computers

• File Transfer Protocol (FTP)– A standard protocol allowing users to copy files

from computer to computer on Internet

• Universal Resource Locator (URL)– A standard way of giving the address of a

resources on Internet that is part of WWW


Internet Language (Cont’d)• Malicious Software

– Viruses– Trojan horse

• A program on the surface seems to perform legitimate work, but causes damage when executed

– Zombie• A launching program residing in an Internet-

attached computer

– Worm• A program replicating itself on a computer’s hard

disk, slowing down the computer’s performance


Implications for Management

• Surge of E-commerce

• IT Job Market– 850,000 IT jobs go unfilled in 2001– Job Loyalty– Fastest growing Job Market

• http://www.acinet.org/acinet/oview1.asp?from=National&Level=BAplus&soccode=&stfips=

ELC 200

DAY 4


Agenda

• Assignment #1 Graded– 9 A’s, 3 B’s, 1 C, 2 Zeros for cheating, & 4 non-

submits

– Review?

• Quiz # 1 on Jan 28– Chap 1-3 of text

– 15 M/C (60 Points), 4 Short Essay (40 Points)

• Today we’ll discuss the World Wide Web and Internet Architecture


Extra Stuff

• http://www.ecommercetimes.com

• http://www.icecc.com/

• http://itmanagement.earthweb.com/ecom

• http://www.internetnews.com/ec-news/

• http://live.emarketer.com/

WWWWWW

Chapter 3

Internet Architecture


Overview

• What is a Network?• IP Addresses• Networks• Information Transfer• Cable Types• Key Components of a Network• Factors in Designing a Network• Network Management System


What is a Network?

• A connection between at least two computers for the purpose of sharing resources

• Types:– Local Area Networks (LANs)– Wide Area Networks (WANs)– Metropolitan Area Networks (MANs)


Peer-to-Peer Network

• Computers linked together as equals

• No centralized control

• Share resources on the same network in any way and any time

• Promotes institutionalized chaos

• < 10 computers

• AppleTalk and NetBIOS


Peer-to-Peer Network (Cont’d)• Benefits

– Easy to install/configure

– Inexpensive

– User is able to control their own resources

– Independent from a dedicated server

– No need for a network administrator

• Drawbacks– Security problems

– Performance suffers when a computer is accessed

– Difficult to have backup

– Decentralized logon passwords

– No centralized data management


Client/Server Network

• Server – designed to address a client’s request

• Client – any computer connected to a server within a network

• A cluster of computers (called clients) connected to one or more servers to form a network

• Allow authorized user to access any programs/application resided on the server


Client/Server Network (Cont’d)• Benefits

– Centralized security control

– Simpler network administration than peer-to-peer network

– Centralized password

– More scalable

– Ideal for computers are apart

• Drawbacks– Network failure - clients

are helpless

– Specialized staff are needed

– Higher costs


IP Address

• A host number that identifies itself to other hosts

• Consists of strings of 32 bits• E.g. 10111111 10101010 01000000

00001100 = 191.170.64.12 • Host Name

– Human-friendly internet addresses– E.g. ema3z.mcintire.virginia.edu


Networks

Networks are classified by three sizes

Class Beginning Bit

Bits in remainder of network part

# of bits in local part

Max. # of networks

Max. # of hosts in network

A 0 7 24 136 16 million

B 10 14 16 16,000 65,000

C 110 21 8 2 million 254


Numbers of Hosts

# of networks # Hosts / network total

Class A 126 16,777,214 2,113,928,964

Class B 16,382 65,534 1,073,577,988

Class C 2,097,150 254 532,676,100

3,720,183,052


Networks (Cont’d)

• DNS Zone– Three-letter kind (com, gov, edu)

– Two-letter kind (ca, uk, jp)

– New general-purpose zones (firm, store)

– Last (rightmost) part of a domain name preceded by a dot

• More Information at The Internet Assigned Numbers Authority – http://www.iana.org/domain-names.htm


Network Names (TLDs)• AERO air-transport industry• ARPA Address and Routing Parameter Area• BIZ business • COM commercial• COOP cooperatives • EDU U.S. educational • GOV U.S. government • INFO information • INT international organizations • MIL U.S. military • MUSEUM museums • NAME individuals, by name • NET network • ORG organization • PRO professions


Information Transfer• Packet

– Grouping of data for transmission on a network– Large messages are split into a series of packets

for transmission

• Protocol– A rule governing how communication should

be conducted– Internet Protocol

• Set of rules used to pass packets

Internet Architecture: Information Transfer


Information Transfer (Cont’d)• Open Systems Interconnection (OSI)

– A layered approach to networking– Each layer handles a different portion of the

communication process


Source http://www.iec.org/


OSI Reference Model (Cont’d)• Application Layer

– Defines requests & response formats– Standard: HTTP

• Governs requests & response between browser & web server application program

• Other standards: SMTP, POP• HTML-compatible

– File Transfer Protocol (FTP), Simple Network Management Protocol (SNMP), Domain Name Service (DNS)



OSI Reference Model (Cont’d)• Presentation Layer

– Converts data into a format the receiving application can understand

• Session Layer– Exchanges data for the duration of session– Keeps track of the status of exchange– Ensures only designated parties are allowed to

participate in the session– Enforces security protocols for controlling

access



OSI Reference Model (Cont’d)• Transport Layer

– Manages the transmission of data across a network

– Transmission Control Protocol (TCP)• Specifies how two host computers will work

together

• Flow control

• Sequence assurance

• Reliability & integrity



OSI Reference Model (Cont’d)

• Internet Layer– Routes messages across multiple nodes for

delivery– Handles network congestion to minimize

performance problems– Internet Protocol (IP)

• Standard for routing packets



OSI Reference Model (Cont’d)• Data Link Layer

– Packages data into frames for delivery– Point-to-point (PPP)

• Framing – mark boundary between packets• Error detection

– Ethernet

• Physical Layer– Converts bits into signals for outgoing

messages & signals into bits for incoming messages



OSI Reference Model


Layer Info Transacted TCP/IP Protocols

Application Application messages HTTP, FTP, SNMP

Presentation Compressed data

Session Session messages

Transport Multiple packets TCP

Network Packets IP

Data Link Frames Ethernet, PPP

Physical Bits Wiring, cables


Cable Types

• Twisted-Pair Cable

• Unshielded Twisted Pair (UTP)

• Shielded Twisted Pair (STP)

• Optical Fiber

• Coaxial Cable

• Wireless Technology

Internet Architecture: Cable Types


UTP Cable


Twisted-Pair Cable• Consists of two pairs of insulated copper wires

twisted around each other• Advantages

– Protect against cross talk & interference– Easy to add computers to network– Well understood technology– Less expensive

• Disadvantages– Susceptibility to noise– Least secure– Distance limitations



Unshielded Twisted Pair (UTP)

• Pair of wires that do not have the shielding against electrical interference

• Advantages– Less expensive– Easy to install

• Disadvantages– Vulnerable to electromagnetic interference &

crosstalk– Subject to attenuation



Shielded Twisted Pair (STP)

• An electrically grounded woven copper mesh wrapped around each twisted pair

• Advantage– Reduces electromagnetic interference (EMI)

• Disadvantage– Makes the wiring thick and is difficult to

maintain



Optical Fiber


Optical Fiber• Uses light rather than voltage to indicate one and zeros• Advantages

– High speed transmission– High security– Smallest in size– Supports voice & video data

• Disadvantages– Expensive– Difficult to install– Require two cables to transmit & receive data– Require special connections



Coaxial Cable


Coaxial Cable• Copper center shielded by a plastic insulating

material• Advantages

– Transmits up to 10Mbps over 500m– Easy to install– Low maintenance– Good resistance to noise over long distances

• Disadvantages– Inflexible– Low security– Limited distance



Wireless Technology• Microwave

– Connect LANs in separate buildings

• Radio waves– No distance limitations– Susceptible to atmospheric and electronic

interference– Subject to government regulations

• Infrared transmissions– Interference from bright light



Key Components of A Network

• Network Interface Card (NIC)

• Hubs & Switches

• Routers

• Gateways

Internet Architecture: Key Components of a Network


Network Interface Card

• Installed in a slot with a cable plugged into the back

• Plugged into a wall jack connection or into the hub/switch directly

• Modem – Converts digital signals into analog form for

transmission and incoming analog signals into digital signal across the telephone line



Hubs & Switches

• Hub– Operates at Physical Layer– Acts as a connecting point– Passive, active, and intelligent hubs

• Switch– Offers direct connection to a particular PC– Available for almost every OSI level



Routers

• Operate at Internet Layer

• Evaluate network traffic and stop local traffic from causing congestion

• Filter out packets that need not be received

• Expensive & difficult to operate



Gateways

• Special-purpose computer allowing communications between dissimilar systems on the network

• Operate at Application Layer primarily

• Difficult to install & configure

• Expensive



Factors in Designing a Network

• Location

• Capacity

• Distance limitations

• Cost

• Potential growth

• Security


Factors in Selecting Network Architecture

• Hardware requirements

• Software requirements

• Disaster recovery & fault-tolerance requirements

• Corporate culture and organizational factors

Internet Architecture: Factors in Designing a Network


Network Management System

• Manager

• Managed Nodes

• Objects

• Management Information Base (MIB)

• Requests & responses


Large-Scale E-commerce Issues

• Financial exposure

• IP exposure

• Legal security

• Packet sniffing


Ensuring Corporate and Information Security

• Firewalls

• IP Security

• Intrusion detection systems


Management Implications Technical Talents Required

• Programming– Procedural & Scripting

– Object Oriented

– Markup Languages

• System analysis– Needs assessment

– System design and Specification

– Project Management

• Networks– Design

– Administration

– Security

• Databases– Design

– Transaction programming

– Administration


Management Implications

• High demand for Technical talent– Project Management – Business Knowledge – Communication Skills– High Salaries

• Retaining Talent– Constructive & Timely Feedback– Recognition & Appreciation– Championing Staff Causes– Support Employee Career goals– Match Industry Standards for Salary


Assignment #2

• On page 66 of text, answer questions 1,2 & 3 of Web Exercises

• On page 102 of text, answer question 1 of Web Exercises• Turn in a well formatted typed response sheet

– or e-mail to me in WebCt– or e-mail to me at [email protected]

• Due Friday, January 28, at start of class

ELC 200 Day 3 & 4. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall2 Agenda Assignment...

Documents

Transcript of ELC 200 Day 3 & 4. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall2 Agenda Assignment...