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Laudon_Traver_3E_Chapter3_Final.pdf E-commerce Kenneth C. LaudonCarol Guercio Traverbusiness. technology. society.Third Edition
1.
Copyright © 2007
Pearson Education, Inc. Slide 3-1 E-commerce Kenneth C. Laudon Carol Guercio Traver business. technology. society. Third Edition
2.
Copyright © 2007
Pearson Education, Inc. Slide 3-2 Chapter 3 The Internet and World Wide Web: E-commerce Infrastructure
3.
Copyright © 2007
Pearson Education, Inc. Slide 3-3 Web 2.0: Mashups Propel New Web Services Class Discussion „ What are Web mashups and what technology makes them possible? „ Why would Google and others allow their software to be combined with other software? „ What is the potential benefit to consumers? „ If mashups ultimately make money, how will the revenues be divided? „ Why would mashups be supportive of “context” advertising?
4.
Copyright © 2007
Pearson Education, Inc. Slide 3-4 The Internet: Technology Background „ Internet: An interconnected network of thousands of networks and millions of computers, linking businesses, educational institutions, government agencies, and individuals „ World Wide Web (Web): One of the Internet’s most popular services, providing access to over 8 billion Web pages
5.
Copyright © 2007
Pearson Education, Inc. Slide 3-5 The Evolution of the Internet 1961—The Present „ History of Internet can be segmented into 3 phases: ƒ Innovation Phase—fundamental building blocks conceptualized and realized ƒ Institutionalization Phase—providing funding and legitimization for Internet ƒ Commercialization Phase—private corporations take over and expand Internet backbone and services
6.
Copyright © 2007
Pearson Education, Inc. Slide 3-6 The Internet: Key Technology Concepts „ Federal Networking Council definition of Internet highlights three important concepts that are the basis for understanding the Internet: ƒ Packet switching ƒ TCP/IP communications protocol ƒ Client/server computing
7.
Copyright © 2007
Pearson Education, Inc. Slide 3-7 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
8.
Copyright © 2007
Pearson Education, Inc. Slide 3-8 Packet Switching Figure 3.3, Page 121
9.
Copyright © 2007
Pearson Education, Inc. Slide 3-9 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 Internet’s addressing scheme „ TCP/IP is divided into 4 separate layers: ƒ Network Interface Layer ƒ Internet Layer ƒ Transport Layer ƒ Application Layer
10.
Copyright © 2007
Pearson Education, Inc. Slide 3-10 The TCP/IP Architecture and Protocol Suite Figure 3.4, Page 122
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Copyright © 2007
Pearson Education, Inc. Slide 3-11 IP Addresses „ Internet address (also called IP address): a 32-bit number expressed as a series of four separate numbers marked off by periods, such as 201.61.186.227 „ IPv4 the current version of IP. Can handle up to 4 billion addresses „ IPv6 (next generation of IP) will use 128-bit addresses and be able to handle up to 1 quadrillion addresses
12.
Copyright © 2007
Pearson Education, Inc. Slide 3-12 Routing Internet Messages: TCP/IP and Packet Switching Figure 3.5, Page 123
13.
Copyright © 2007
Pearson Education, Inc. Slide 3-13 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
14.
Copyright © 2007
Pearson Education, Inc. Slide 3-14 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.
15.
Copyright © 2007
Pearson Education, Inc. Slide 3-15 Insight on Business: Peer-to-Peer Computing Goes to Work Class Discussion „ How does Peer-to-Peer (P2P) networking differ from client/server networking? „ Why is P2P networking a potential money-saver for corporations and other organizations? „ What are some illegal uses of P2P networking? „ What are some legal uses of P2P networking? „ Why does P2P networking permit users to remain anonymous? Is this a good thing?
16.
Copyright © 2007
Pearson Education, Inc. Slide 3-16 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
17.
Copyright © 2007
Pearson Education, Inc. Slide 3-17 Utility Programs „ Ping: Utility program that allows you to check connection between client and server „ 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
18.
Copyright © 2007
Pearson Education, Inc. Slide 3-18 The Internet Today „ Client/server computing model, coupled with hourglass, layered architecture of Internet has allowed Internet to handle explosive growth without disruption „ Hourglass/layered architecture – 4 layers: ƒ Network Technology Substrate ƒ Transport Services and Representation Standards ƒ Middleware Services ƒ Applications
19.
Copyright © 2007
Pearson Education, Inc. Slide 3-19 The Hourglass Model of the Internet Figure 3.11, Page 132 SOURCE: Adapted from Computer Science and Telecommunications Board (CSTB), 2000.
20.
Copyright © 2007
Pearson Education, Inc. Slide 3-20 Internet Network Architecturee „ Backbone: Consists of high-bandwidth fiber-optic cable owned by a variety of Network Service Providers (NSPs) „ Internet Exchange Points (IXPs): Hubs where backbones intersect with regional and local networks, and where backbone owners connect with one another „ Campus area networks (CANs): Local area networks operating within a single organization that leases Internet access directly from regional or national carrier „ Internet Service Providers: Lease Internet access to home owners and businesses
21.
Copyright © 2007
Pearson Education, Inc. Slide 3-21 Internet Network Architecture Figure 3.12, Page 133
22.
Copyright © 2007
Pearson Education, Inc. Slide 3-22 Internet Service Providers (ISPs) „ Retail providers that deal with “last mile of service” „ Major national ISPs include AOL, MSN, and AT&T WorldNet, etc. „ Offer both narrowband (traditional telephone modem connection at 56.6 Kbps) and broadband (service based on DSL, cable modem, T1 or T3 telephone lines, and satellite)
23.
Copyright © 2007
Pearson Education, Inc. Slide 3-23 Broadband Service Choices „ Digital Subscriber Line (DSL): Telephone technology delivers high-speed access through ordinary telephone lines „ Cable modem: Cable television technology piggybacks digital access to Internet on top of analog video cable line „ T1 and T3: International telephone standards for digital communication that offer guaranteed delivery rates „ Satellite: high-speed downloads, but no upload available
24.
Copyright © 2007
Pearson Education, Inc. Slide 3-24 Intranets and Extranets „ Intranet: TCP/IP network located within a single organization for purposes of communication and information processing „ Extranet: Formed when firms permit outsiders to access their internal TCP/IP networks
25.
Copyright © 2007
Pearson Education, Inc. Slide 3-25 Who Governs the Internet? „ A number of different organizations that influence Internet and monitor its operations including: „ Internet Architecture Board (IAB) „ Internet Corporation for Assigned Names and Numbers (ICANN) „ Internet Engineering Steering Group (IESG) „ Internet Engineering Task Force (IETF) „ Internet Society (ISOC) „ World Wide Web Consortium (W3C)
26.
Copyright © 2007
Pearson Education, Inc. Slide 3-26 Insight on Society: Government Regulation of the Internet Class Discussion „ Why should the government of France be permitted to censor the Web in France (or elsewhere)? „ Does the Chinese government, or the U.S. government, have the right to censor content on the Web? „ How is it possible for any government to “control” or censor the Web? „ What would happen to e-commerce if the existing Web split into a different Web for each country?
27.
Copyright © 2007
Pearson Education, Inc. Slide 3-27 Internet II: The Future Infrastructure „ Internet II: The second era of the Internet that is being built today by private corporations, universities, and government agencies „ To appreciate benefits of Internet II, you must understand limitations of the Internet’s current infrastructure
28.
Copyright © 2007
Pearson Education, Inc. Slide 3-28 Limitations of the Current Internet „ Bandwidth limitations „ Quality of service limitations „ Network architecture limitations „ Language development limitations „ Wired Internet limitations
29.
Copyright © 2007
Pearson Education, Inc. Slide 3-29 The Internet2® Project „ Internet2: Consortium of more than 200 universities, government agencies, and private businesses that are collaborating to find ways to make the Internet more efficient „ Primary goals: ƒ Create a leading edge very-high speed network for national research community ƒ Enable revolutionary Internet applications ƒ Ensure the rapid transfer of new network services and applications to the broader Internet community
30.
Copyright © 2007
Pearson Education, Inc. Slide 3-30 Areas of Focus of Internet2 „ Advanced network infrastructure „ New networking capabilities „ Middleware „ Advanced applications
31.
Copyright © 2007
Pearson Education, Inc. Slide 3-31 The Larger Internet II Technology Environment: The First Mile and the Last Mile „ GENI Initiative: Proposed by NSF to develop new core functionality for Internet „ Private initiatives in fiber optics and wireless Internet services
32.
Copyright © 2007
Pearson Education, Inc. Slide 3-32 Fiber Optics and the Bandwidth Explosion in the First Mile „ Fiber optics concerned with the “first mile” or backbone Internet services that carry bulk traffic over long distances „ Older transmission lines being replaced with fiber-optic cable „ Right now, much of fiber-optic cable laid in United States is “dark”, but represents a vast digital highway that can be utilized in the future
33.
Copyright © 2007
Pearson Education, Inc. Slide 3-33 Photonics Technologies „ Photonics: Study of communicating with light waves „ Technologies that will have impact on achieving Internet II include ƒ Dense Wavelength Division Multiplexing (DWDM) ƒ Optical and fiber switches, and switching components ƒ Optical integrated circuits ƒ Optical networks „ Big Band: Next step in Internet access; will provide bandwidth of 10 Gbps +
34.
Copyright © 2007
Pearson Education, Inc. Slide 3-34 The Last Mile: Mobile Wireless Internet Access „ Wireless Internet access concerned with the “last mile”—from Internet backbone to user’s computer, cell phone, PDA, etc. „ Two different basic types of wireless Internet access: „ Telephone-based „ Computer network-based
35.
Copyright © 2007
Pearson Education, Inc. Slide 3-35 Telephone-based Wireless Internet Access „ Different standards ƒ Global System for Mobile Communications (GSM): used primarily in Europe ƒ Code Division Multiple Access (CDMA): used primarily in U.S. „ Third generation (3G) cellular networks „ Wireless Web protocols include: ƒ Wireless Access Protocol (WAP) ƒ iMode
36.
Copyright © 2007
Pearson Education, Inc. Slide 3-36 Wireless Local Area Networks (WLANs) „ Wi-Fi: High-speed, fixed broadband wireless local area network. Different versions for home and business market. Limited range „ WiMax: High-speed, medium range broadband wireless metropolitan area network „ Bluetooth: Low-speed, short range connection of digital devices „ Ultra-Wideband (UWB): Low power, short-range high bandwidth network „ Zigbee: Short-range, low-power wireless network technology useful for remotely controlling digital devices
37.
Copyright © 2007
Pearson Education, Inc. Slide 3-37 Wireless Local Area Network Hotspots Figure 3.17, Page 153
38.
Copyright © 2007
Pearson Education, Inc. Slide 3-38 Benefits of Internet II Technologies „ IP Multicasting: set of technologies that enables efficient delivery of data to many locations on a network „ Latency solutions: diffserve (differentiated quality of service) will be able to assign different levels of priority to packets depending on type of data being transmitted „ Guaranteed service levels: ability to purchase right to move data through network at guaranteed speed in return for higher fee „ Lower error rates „ Declining costs
39.
Copyright © 2007
Pearson Education, Inc. Slide 3-39 IP Multicasting Figure 3.18, Page 156 SOURCE: Adapted from Internet2.edu, 2000; Cisco Systems, 2002.
40.
Copyright © 2007
Pearson Education, Inc. Slide 3-40 Development of the Web „ 1989–1991: Web invented by Tim Berners-Lee at European Particle Physics Laboratory (CERN) „ 1993: Marc Andreesen and others at NCSA create Mosaic, a Web browser with a graphical user interface that could run on Windows, Macintosh, or Unix computer „ 1994: Andreessen and Jim Clark found Netscape, and create first commercial Web browser, Netscape Navigator „ August 1995: Microsoft introduces its version of Web browser, Internet Explorer
41.
Copyright © 2007
Pearson Education, Inc. Slide 3-41 Hypertext „ A way of formatting pages with embedded links that connect documents to one another, and that also link pages to other objects such as sound, video, or animation files „ Uses Hypertext Transfer Protocol (HTTP) and URLs to locate resources on the Web
42.
Copyright © 2007
Pearson Education, Inc. Slide 3-42 Markup Languages „ Generalized Markup Languages (GMLs) include: „ Standard Generalized Markup Language (SGML)—an early GML „ Hypertext Markup Language (HTML)—a GML that is relatively easy to use; provides fixed set of markup “tags” used to format a Web page „ eXtensible Markup Language (XML)—new markup language specification developed by W3C that is designed to describe data and information; tags used are defined by user
43.
Copyright © 2007
Pearson Education, Inc. Slide 3-43 Web Servers and Web Clients „ Web server software: Enables a computer to deliver Web pages written in HTML or XML to clients on network that request this service by sending an HTTP request „ Basic capabilities: Security services, FTP, search engine, data capture „ Term Web server also used to refer to physical computer that runs Web server software „ Web client: Any computing device attached to the Internet that is capable of making HTTP requests and displaying HTML pages
44.
Copyright © 2007
Pearson Education, Inc. Slide 3-44 Web Browsers „ Primary purpose to display Web pages „ Internet Explorer (88%) and Firefox (9%) dominate the market „ Other browsers include: ƒ Netscape ƒ Opera ƒ Safari (for Apple Macintosh)
45.
Copyright © 2007
Pearson Education, Inc. Slide 3-45 The Internet and Web: Features „ Internet and Web features on which the foundations of e-commerce are built include: „ E-mail „ Instant messaging „ Search engines „ Intelligent agents (bots) „ Online forums and chat „ Streaming media „ Cookies
46.
Copyright © 2007
Pearson Education, Inc. Slide 3-46 E-mail „ One of the most used applications of the Internet „ Uses a series of protocols to enable messages containing text, images, sound, video clips, etc., to be transferred from one Internet user to another „ Also allows attachments (files attached to the e-mail message) „ Can be an effective marketing tool „ Spam: unsolicited e-mail. A worsening problem
47.
Copyright © 2007
Pearson Education, Inc. Slide 3-47 Instant Messaging „ One of fastest growing forms of online human communication „ Displays words typed on a computer almost instantly, and recipients can then respond immediately in the same way „ Different proprietary systems offered by AOL, MSN, Yahoo, and Google
48.
Copyright © 2007
Pearson Education, Inc. Slide 3-48 Search Engines „ Identifies Web pages that appear to match keywords (queries) entered by a user, and provides list of best matches based on one or more of a variety of techniques „ No longer simply search engines, but also shopping tools and advertising vehicles (search engine marketing)
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Pearson Education, Inc. Slide 3-49 Top Five Search Engines Figure 3.22, Page 168 SOURCE: Based on data from Sullivan, 2006; Pew Internet & American Life Project, 2005c; comScore Networks, 2006.
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Pearson Education, Inc. Slide 3-50 How Google Works Figure 3.23, Page 169
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Pearson Education, Inc. Slide 3-51 Intelligent Agents (Bots) „ Software programs that gather and/or filter information on a specific topic and then provide a list of results „ Types include search bot, shopping bot, Web monitoring bot, news bot, chatterbot
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Pearson Education, Inc. Slide 3-52 Insight on Technology: Chatterbots Get a Job: Virtual Reps Class Discussion „ What are chatterbots? Why would any firm use them? „ Have you experienced a chatterbot on the Web or telephone? Was this a useful or helpful experience? „ What are vReps? Why would a business use vReps? „ Verity is now owned by Autonomy Corporation (autonomy.com)
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Pearson Education, Inc. Slide 3-53 Other Internet and Web Features Relevant to E-commerce „ Online forums and chat: Enables users to communicate with each other via computer. Online chat occurs in real time (simultaneously); used in e- commerce to help develop community „ 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 „ Cookies: small text file stored on user’s computer with information about the user that can be accessed by Web site the next time user returns to the site
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Pearson Education, Inc. Slide 3-54 Internet II and E-commerce: Emerging Features and Services „ Weblogs (blogs): Personal Web page that typically contains a series of chronological entries by its author, and links to related Web pages „ Really Simple Syndication (RSS): Program that allows users to have digital content automatically sent to them; typically used for news „ Podcasting: Audio presentation stored as an audio file and available for download from Web
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Pearson Education, Inc. Slide 3-55 Internet II and E-commerce: Emerging Features and Services (cont’d) „ Wiki: Web application that allows a user to easily add and edit content on a Web page „ New music and Video services: Videocasts; digital video on demand; videocasts „ Internet Telephony: Technologies that use Voice Over Internet Protocol (VOIP) and Internet’s packet-switched network to transmit voice and other forms of audio communication over the Internet
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Pearson Education, Inc. Slide 3-56 Internet II and E-commerce: Emerging Features and Services (cont’d) „ Video conferencing „ Online software and services: digital software libraries, distributed storage „ M-commerce applications
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