Amity School of Business

Amity School of Business

BBA, Semester IV
E-Commerce
Ms Bhawana Gupta
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MODULE-II TECHNOLOGY

The driving force behind

E-Commerce
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E-Commerce
• Hardware & Software consideration and
implementation
• Network resource & internet architecture:
– Network Client-Server Architecture,
– Types of Networks, Information Transfer – Packets
and protocols
– Network Hardware, Network design planning &
consideration :Technology & Management
Implications
– Hosting the web site
– Wireless technology and Mobile-Commerce
• Electronic Data Interchange 3
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Design Consideration
• Network communication functions are performed primarily by a
combination of hardware and software specifically designed to
support the network

• Hardware – includes the network interface card, the cables, and the
switches that connect the workstations to the router and beyond.

• Web site is the front of the network architecture.

• To implement the network we need to think about the various

protocols and the applications that will support the hardware.

4
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Step 1: Factors to Keep in Mind

• Location – Where will the network be installed? How convenient is
the location?
• Capacity – What is the optimum traffic capacity of the network
• Distance Limitations- What is the distance of the farthest PC to the
server? How does distance affect network performances during peak
hours?
• Cost – What is the estimated cost of the proposed network
installation? Is the cost within the client’s budget? What are the
hidden cost?
• Potential Growth – How easily and how well can the network be
expanded to meet the growing demands of the client organizations
• Security- How secure is the proposed network? What security
measures should be incorporated ? Who will be in charge of
monitoring security.
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Step-2 Hardware & Software Considerations

Factors when selecting network architecture
• Hardware requirements: Hardware includes servers, workstations,
printers, switches, routers, minicomputers, and backup systems.
• Software requirements: These requirements depend largely on the
hardware and applications required.
• Disaster Recovery and Faulty-Tolerance Requirements: Recovery
from disaster depends on the sensitivity of data, size of the files and
reliability of the network. Redundant equipment (switches, routers,
severs) also should be as backup for the main network. Fault tolerant
means the system has built-in features that allows it to recover from
failure. Fault-tolerant hard disks are defines by a set of
specifications known Redundant Array of Inexpensive Disks or
RAID, which mirror resident disk drives.
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What is a Network
• A connection between at least two computers for the purpose of
sharing resources. All networks are based on the concept of sharing.

Types of Network
• Peer- to Peer Networks
• Client / Server Networks
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Peer- to Peer Networks

• It is the linking of several PCs (usually fewer than 10) so that each
acts as a peer, sharing and exchanging information without the needs
for a centralized server.

• Computers in peer-to peer networks are usually linked together as

equals, with no centralized server or control. Any computer can share
its resources with any other computer on the same network in any way
and whenever it chooses to do so.

• Every user is a network administrator in that he or she can control

access to the resources that reside on his or her own computer.

Peer- to Peer Networks
Advantages
• Easy to install
• East to configure the
system.
• Users can control their own
shared resources
• Ideal for small business of
10 users or less
• No need for a full-time
network administrator
• Inexpensive to purchase and
operate
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Disadvantages
• Every time a computer in
the network is accessed.
• Network security is applied
to one computer at a time.
• Backup is performed on
each machine separately to
protect shared resources.
• No centralized setup to
locate, manage, or control
access to data.
• Users have to use a separate
password on each computer
in the network.
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Client / Server Networks

• A server is simply a special-purpose computer or specialized
hardware and software designed for one function- to address a client’s
requests. A client is any computer or workstation connected t the
server within a network. On of the main advantages of client/server
networks is centralized control over network resources.
• All the programs or applications normally reside on the server. For
instance, a client may send a request to the server to use Microsoft
Excel. The server allows the client to download the executable portion
of Excel. When the work is finished, the program s uploaded on the
server for storage ad future use.
• A client/server is a multi-user environment. More than one authorized
user can access any program or application that resides on the server.
• The whole setup is monitored by a system network administrator, who
is the only person authorized to make changes in passwords or to
issue passwords.
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Advantages Client / Server Networks

Disadvantages
• Specialized
Centralized staff
security
needed
access
to manage
and control.
the specialized hardware
• and
Idealsoftware.
for more than 10 users.
•• Network failure means
Simpler network clients are
administration almost
than helpless
peer-to peer networks.
• Higher costuser
Ideal when thancomputers
peer-to peer
arenetwork because
not in close of the
proximity.
• specialized hardware
Users remember only and
one software
password. architecture.
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Types of Client/Server Architecture

• Two-Tier Architecture: When an organization has between 12 and
100 users interacting on a LAN at the same time. It requires minimal
operator intervention and is used frequently in non complex system.
This model has mainly two components:
User System Interface & Database Management System, with limited
process management capabilities.

• Primary limitations associated with this model are:

- When the number of users exceeds performance begins to deteriorate.
This is because server maintains a connection with each client even
when no work is being done.
- Limited processing management restricts flexibility.
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Types of Client/Server Architecture

• Three-Tier Architecture: This model has mainly three components:
User System Interface, Middleware (process management) &
Database Management System. The middle tier manages distributed
database integrity into two phase process. It provides improved access
to resources, thus enhancing scalability and flexibility as system
components are added or more. It can also performance queuing,
application execution and database staging.
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Information Transfer
• In e-commerce, messages, invoicing and other information
transmission is made possible by protocols, standards ad other
software that transmit information via packets through a cable to its
destination.

• Let us look at the Indian Postal Service. When you mail a package to
someone, you wrap the goods in a box, supply the recipient’s address,
and also our return address in case it is refused, proves to have the
wrong address, or has to be returned. The Postal Service routes the
package from a local post office to a central facility by truck. The
package goes from one office to another by train/ship/plane or by
truck until it reaches the local office closest to the recipient’s home or
office address. From there , it is carried and delivered by hand.
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Information Transfer
• The Internet also works much the same way. When you send a
message to another host, the message is sandwiched in one or more
packets and forwarded via routers that identify its destination and
send it from one outer to another until it reaches the host computer.
Forwarding messages electronically from one part of a Net to another
is very common. To standardize the way Internet traffic is managed,
there are rules to ensure successful transmission and delivery.
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Packets and Protocols

• In Internet usage, all data sent through the Internet are sent as packets.
Technically, a packet is a sequence of bits that carries identifying
information for transmitting the data as well as the data itself.
Messages that are larger that the standard packet size are split into a
series of packets for transmission. Putting the packets back together at
the destination is no problem.
• Packets and Internet Protocols (IP) have one thing in common: One
cannot function without the other. For example, when A dials B, B
answers the phone by saying “Hello”. So the term Hello is the
protocol for answering the phone.
• Protocols are pieces of software that run on every node or computer
and allow every pair of computer to communicate directly without
having to know much about each other, except for the IP address.
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Packets
• Protocols: a rule and
that governs Protocols
how communication should be
conducted between two parties, two computers or a source and
a destination.
• Protocols used in connection with the IP include many
functions. They are called TCP/IP.
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Packet Switching
• It refers to the way data are exchanged between two communication
computers.

• Data transmitted in small, independent pieces

– Source divides outgoing messages into packets
– Destination recovers original data

• Each packet travels independently

– Includes enough information for delivery
– May follow different paths
– Can be retransmitted if lost 18
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Network Hardware
• In the guided media, the data signals are sent along a specific path ,
through a wire or a cable. The most common types of wired
transmission media are :

• Twisted-pair Cable
• Coaxial Cable
• Optical Fiber Cable
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Twisted Pair Cable

• Twisted pair cable consists of four pairs of copper wires coated with
an insulating material like plastic, twisted together. The twisting of
wires reduces electromagnetic interference from external sources.
Twisted pair is of two kinds – STP(Shielded twisted-pair) and
UTP(Unshielded twisted-pair)

• STP cable has an extra layer of metal foil between the twisted pair of
copper and the outer covering. The metal foil covering provides
additional protection from external disturbances. STP is costly and is
generally used in network where cable pass closer to devices that
cause external disturbances.
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Coaxial Cable
• Coaxial cable are consists of a stiff copper wire as the core,
surrounded by an insulating material. It a good combination of high
bandwidth and excellent noise immunity. It can transmit digital
signals at rates up to 10 mbps. They are used extensively in long
distance telephone lines and a cables for cable TV.
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Optical Fiber Cable

Fiber optical are hair –thin threads of glass used as data transmission
medium like copper wires or coaxial cable. They transmit light signals
instead of electrical signals. As light travel much faster than electricity,
optical fibers can transmit data at much higher speed and without loss of
intensity over long distances. Optical fibers enable transmission of both
analog and digital signals.
An optical transmission system has 3 components:
• Light source
• Transmission media
• Detector
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Optical Fiber Cable

Advantages
• Optical fibers are ideally suited for carrying digital information,
which is especially useful in computer networks.
• They can carry more information than a wire.
• They are highly secure as they cannot be tapped and for lack of signal
radiation.

Disadvantages :Installing an optical fiber requires special equipment.

• If a fiber breaks, finding the broken location is difficult.
• Repairing a broken optical fiber is difficult and requires special
equipment
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The most common types of wireless transmission media

(unguided media) are :

• Broadcast Radio Transmissions

• Microwave Transmissions
• Satellite Transmission
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Broadcast Radio Transmissions

 Radio waves are easy to generate, can travel long distance and
penetrate building easily, so they are widely used for communication
both indoors and outdoors.

 Radio waves are omni-direction meaning that they can travel in all
directions from the sources.

 Transmitter is used to send radio signals through the air, a receiver

with an antenna accepts the data at the other end.

 Short range (Bluetooth) medium range (Wi-Fi) and long range (fixed
wireless Internet Access)
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Microwave Transmissions
 Microwave transmission refers to the technique of transmitting
information over a microwave link.
 Microwave can travel in a straight line only.
 Microwaves are used where there is a clear path between the
transmitter and the receiver.
 Microwave stations are earth based stations placed on tall buildings,
mountains etc
 Microwaves can also exchange data with satellites.
 Microwave use high frequency radio signals to transmit data through
space. However, at microwave frequencies, electromagnetic waves
cannot bend or pass obstacles like tall buildings or hills. This may not
be possible for very long distance transmission. Moreover, signals
become weaker after traveling a certain distance and require power
amplification.
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Satellite Transmissions
 Space based devices placed into orbit around the earth to receive
and transmit microwave signals to and from earth.

 They can send and receive data from

variety of devices such as personal satellite
dishes for TV and Internet, GPS receivers,
satellite phones

- LEO (Low Earth Orbit)- Telephone

- MEO (Medium Earth Orbit)- Internet
and GPS of data at high speed.
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Hosting your website

After designing your website, you need to find a way to put it on the
internet. The entire process from assessing the requirements, selection
of ISP, selection and registration of domain name is described as
hosting of website.

ISPs (Internet Service providers) play a very important role in the

entire process of website hosting. For a fee, the ISP gives you a
software package, a user name, a password and an access phone
number.

With a good ISP, things can go smoothly else many difficulties can arise
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Using an Internet Service Provider

Renting a server from an Internet Service Provider (ISP) is a common
option. Most small & medium size companies store their web site on a
server provided by an ISP. Here are some advantages:

• Connection Speed : Most ISPs have very fast connections to the

Internet.

• Powerful Hardware: ISPs often have powerful web servers that can
be shared by several companies. You can also expect them to have an
effective load balancing, and necessary backup servers.

• Security and Stability : ISPs are specialists on web hosting. Expect

their servers to have more than 99% up time, the latest software
matches, and the best virus protection.
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Things to Consider with an ISP

• 24-hour support : Make sure your ISP offers 24-hours support. Don't
put yourself in a situation where you cannot fix critical problems
without having to wait until the next working day. Toll-free phone
could be vital if you don't want to pay for long distance calls.

• Daily Backup : Make sure your ISP runs a daily backup routine,
otherwise you may lose some valuable data.

• Traffic Volume: Study the ISP's traffic volume restrictions. Make

sure that you don't have to pay a fortune for unexpected high traffic if
your web site becomes popular.

• Bandwidth or Content Restrictions: Study the ISP's bandwidth and

content restrictions. If you plan to publish pictures or broadcast video
or sound, make sure that you can.
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Things to Consider with an ISP

• E-mail Capabilities : Make sure your ISP supports the e-mail
capabilities you need.

• Front Page Extensions: If you use FrontPage to develop your web

site, make sure your ISP supports FrontPage server extensions.

• Database Access: If you plan to use data from databases on your web
site, make sure your ISP supports the database access you need.
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Web Hosting Domain Names

Domain Name: A domain name is a unique name for a web site, like
yahoo. Com. Domain names must be registered. When domain names
are
registered, they are added to a large domain name register. In addition,
information about the web site, including the IP address, is stored on a
DNS server.

DNS stands for Domain Name System. A DNS server is responsible for
informing all other computers on the Internet about the domain name
and
the web site address.

Registering a Domain : Domains can be registered from domain name

registration companies. These companies provide interfaces to search for
available domain names, and they offer a variety of domain name
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Web Hosting Domain Names

• Choosing a Domain Name : Choosing a domain name is a major step
for any individual or organization.
– When choosing a name, it is important to consider the purpose of a
domain name, which is to provide an easy way to reach your web
site.
The best domains have the following characteristics:
– Short - People don't like to type! A short domain name is easier to
type, read, and remember.
– Meaningful - A short domain is nothing without meaning,
34i4nh.com is not easy to enter or to remember. Select a domain
that relates to your site in a way that people will understand.
– Clear - Clarity is important when selecting a domain name. Avoid
a name that is difficult to spell or pronounce.
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Web Hosting Capacities

• How Much Disk Space?
A small or medium web site will need between 10 and 100MB of
disk space. If you look at the size of HTML pages, you will see that
the average size is very small. But if you look at the size of the
images used inside these pages, you will often find the images larger
than the page. Expect each HTML page to take up between 5 and
50KB of disk space on your web server, depending on the use of
images or other space-consuming elements. If you use a lot of images
or graphic elements (or sound files or movies), you might need much
more disk space.
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Web Hosting E-mail Services

• Hosting services should include e-mail accounts and e-mail services.
E-mail Accounts
• Hosting solutions should include e-mail accounts for each person in
your company.
E-mail addresses should appear something like this:
john@mycompany.com
john.doe@mycompany.com
jdoe@mycompany.com

POP E-mail
• POP stands for Post Office Protocol. POP is a standard client/server
protocol for sending and receiving e-mail. The e-mails are received
and held on your internet server until you pick it up with a client e-
mail program, like Microsoft Outlook or Mozilla Thunderbird.
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Web Hosting E-mail Services

IMAP Email
• IMAP stands for Internet Message Access Protocol. IMAP is another
standard protocol for sending and receiving e-mail. The e-mails are
received, and held on your internet server, until you pick it up with a
client e-mail program, like Microsoft Outlook or Mozilla
Thunderbird.
• IMAP represents an improvement over POP because e-mail stored on
an IMAP server can be manipulated from several computers (a
computer at home, a workstation at the office, etc.), without having to
transfer messages back and forth between computers. POP was
designed to support e-mail access on one single computer.
Web-based E-mail
• Web-based e-mail services enable you to access your e-mail via a web
browser. You log into your e-mail account via the Web to send and
retrieve e-mail. Being able to access your e-mail from any browser
anywhere in the world is a very attractive option. Examples of web-
based e-mail services are Gmail and Hotmail.
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Technology & Management Implications

• The main implication of networking for management is that firms
need to have a work environment that technical people find
conducive for long-term employment and one that promotes a
career path for qualified employees.
• Some tips for retaining Internet and Technical personnel are:
1. Constructive and timely feedback: One of the most important
issues in managing and motivating technical people is consistent
and constructive feedback on a day -to-day basis. This is especially
true for new hires. Feedback is also important in helping personnel
develop new skills and advance to more challenging positions.
2. Recognition and appreciation of good, value-added work- It is
human nature that recognition is a rein forcer, especially when it is
made in a timely manner. A simple thanks from the hearts is what it
often takes to restart a project that has been going nowhere.
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Technology & Management Implications

• Championing staff causes: A champion in IT is someone who uses
every opportunity to promote a project with those on higher
organizational levels. Sometimes top management reluctantly
approves a project , not knowing how it is going to turn out. An IT
manger can keep top managers interested and rein force the progress
made by example, by scenarios, or by online displays of completed
work.
• Support of employee career goals: Technical employees should not
only have opportunities to undergo training and improve their skills,
but they should able to utilize those skills . Technical people often are
motivated more by opportunities for creativity than by money alone.
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Technology & Management Implications

• Match industry salary standards for in-house personnel:
Regardless of how well IT personnel are treated, it is still important to
provide competitive salaries and attractive benefits to discourage
defection to the competition. Many corporations now offer sign-up
bonuses, stock options, pleasant office surroundings flextime, and
other opportunities to ensure job satisfaction and loyalty to the
organization. In the final analysis, it takes sensitivity, communication
skills, timely feedback, and a genuine interest in people and their
careers to make a department or a corporation successful.
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Electronic Data Interchange (EDI)

• EDI is used by organizations for transactions that occur on a regular
basis according to a pre-determined format. It involves exchange of
electronic business documents, i.e., purchase orders, invoices etc. EDI
transactions are carried through special EDI software.

Key features of EDI include:

• No paper work
• No human intervention
• Exchange of information takes place in seconds
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Value Added Network (VAN)

• Value added networks are third party networks that provide services to
execute authorized transactions with valid trading partners using EDI.

• Each VAN has a centralized computer system that maintains two files
for each user, that is,

Postbox : where outgoing messages are placed, and

Mailbox : where incoming messages can be picked up
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VAN Example
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VAN Example cont…

• Note that in VAN example above, Nice Store needs to place orders for
bread, meat and vegetables. It establishes a link to VAN through the
dial up line, and sends EDI-based order messages for the three
suppliers which are temporarily stored in its postbox. VAN computer
system inspects postbox, unpacks interchanges (electronic envelopes),
repackages them as new interchanges and moves them to the
mailbox of the intended recipients. The three recipients check their
mailboxes for new interchanges, pick them up and cause them to be
transmitted to their respective processing systems. They can also
send acknowledgment messages and cause them to be stored in their
respective postboxes. VAN checks them and put them in the mailbox
of Nice Food.
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Advantages of VAN
• Two big advantages of using a VAN in EDI are time independence
and protocol independence.

• Time independence means that the sending and receipt of the

interchange or messages can be carried out at the convenience of the
users involved. Thus, they are not required to be connected with each
other at the same time.
• Protocol independence means that interchanges are re-enveloped
with the transmission protocol appropriate to the recipient when they
are retrieved from the postbox by the VAN. Thus, a VAN can provide
protocol compatibility between the sender and the recipient, wherever
that is missing.
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Benefits of EDI
• Shortened ordering time : Since an order is generated automatically
according to a pre-defined format, thus, the ordering time is very
short.

• Cost cutting : An EDI transaction is more cost-effective in the sense

that paper/stationary cost as well as cost of hiring staff to complete a
transaction is eliminated in case of EDI. The only major cost is the
expensive EDI software itself. However, once an EDI system is in
place, it can save many expenses otherwise associated with a normal
transaction.

• Elimination of errors: Messages are generated automatically, so the

chances of any typing errors caused by human intervention are
negligible.
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Benefits of EDI
• Fast response: An EDI message can be read and processed on the
receiver side electronically with the help of EDI software. So, if the
receiver is a supplier of raw material, it can quickly fulfill/implement
the order as compared to a paper order.

• Accurate invoicing: Invoices or payment requests by the

merchant/supplier can also be generated using EDI standard format,
which are more accurate than paper invoices.

• EDI payment: EDI standard documents can be used to electronically

provide financial information for payment purposes.
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Mobile Commerce
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Mobile Commerce
• M-commerce is the buying and selling of goods and services through
wireless handheld devices.
• M-Commerce is the process of paying for services using a mobile
phone or personal organizer.
• M-Commerce is the use of mobile devices to communicate, inform
transact and entertain using text and data via a connection to public
and private networks.
• M-commerce is also known as next-generation e-commerce, m-
commerce enables users to use the Internet without needing to find a
place to plug in. The emerging technology behind m-commerce,
which is based on the WIRELESS APPICATION PROTOCOL(WAP)
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Advantages of M-Commerce
• The benefit of M-Commerce include customer satisfaction, cost
savings and new business opportunities.

• Use M-Commerce anytime, anywhere with the light-weighted device.

• Single owner has control over data whereas the mobile device can be
highly personalized.

• M-Commerce can bring the buyer and seller together more easily and
facilitate greater profits and a closer customer relationship.
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Disadvantage
• Expensive cost
• Larger screens won’t be displayed is clear
• Slow speed
• Limited for longer message
• It hard way to fill the data.
• Security is not protected
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Technology
• Short message service(SMS)
• Wireless application protocol (WAP)
• Bluetooth
• General Packet Radio Service(GPRS)

Pros and Cons of Mobile Commerce
Desktop / PC
 Greater Processing, multimedia  Online product browsing
and display capabilities of PCs  Personalized Advertising
 Greater presentation facilities  Convenience for a
makes the PC more applicable technologically aware user.
to larger purchases  Choice of many online stores
for a wide range of items
discount Notifications.
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Mobile Phone / PDA
 Location based advertising
 Greater Convenience
 Capture of buying impulses
 Alternative payment mechanism
e.g. Phone Bill
 Supports new mobile services

E-Commerce M-Commerce
E-Commerce M-Commerce

 Dialup hassles
 Less possibility of impulse
spending
 Distrust of technology, resistance  Smaller screen size can degrade
to change user experience
 Fears about security online  Small or immature input technologies
transactions  Market may be less open than
 Bad design of many user interfaces e-commerce market
 Slow connections if broadband  Tariffs are relatively high
access not available

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