E-commerce 2019

business. technology. society.

15th edition

Chapter 2
E-commerce Infrastructure
30th November 2019

Dr. Zainil Hanim Saidin

zainilhanimsaidin@usm.my

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 Learning Objectives
•
3.1 Discuss the origins of, and the key technology concepts behind, the Internet.
•
3.2 Explain the current structure of the Internet.
•
3.3 Understand the limitations of today’s Internet and the potential capabilities of the
•
Internet of the future.
•
3.4 Understand how the Web works.
•
3.5 Describe how Internet and web features and services support e-commerce.
•
3.6 Understand the impact of mobile applications.

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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 (stakeholders).
– Internet provides services such as e-mail, apps, shopping,
research, music, videos, and news.

• 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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The Evolution of the Internet
1961–Present
• Innovation Phase, 1961–1974
– Creation of fundamental building blocks

• Institutionalization Phase, 1975–1995

– Large institutions provide funding and legitimization

• Commercialization Phase, 1995–present

– Private corporations take over, expand Internet backbone and
local service

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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 (basic technological

foundations of the Internet)
– Packet switching (a method of slicing digital message into
packets)
– TCP/IP (core communication protocol for the internet)
– Client/server computing (a model of computing that connected
client computers in a network together with one or more servers
for common functions)

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 The Internet “Cloud Computing” Model (1 of 2)

• It is a computing concept where the firms and

individuals obtain computing power and software
over Internet.
• a model of computing in that computer
processing, storage, software, and other services
are provided as a shared pool of virtualized
resources over the Internet.
• No purchasing and installing needed on our own
computers.

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 The Internet “Cloud Computing” Model (2 of 2)

• Hybrid clouds offer both public and private cloud options.

• A private cloud hosted internally or externally. It is operated
solely for the benefit of a single tenant.
• Public cloud has NO stringent privacy and security
requirements. E.g Dropbox
• Radically reduces cost
– Building and operating websites
– Infrastructure, IT support
– Hardware, software

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The Mobile Platform
• Primary Internet access is now through tablets
and smartphones
• Tablets supplement PCs for mobile situations
– 155 million people in U.S. use Internet with tablets

• Smartphones are a disruptive technology

– New processors and operating systems that alter e-commerce
landscape.
– In 2016, 2.5 billion people access Internet with smartphones

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Internet Protocols and Utility Programs –
offers internet services
• Internet protocols
– HTTP (internet protocol used to transfer web pages)
– E-mail: SMTP (internet protocol used to send mail to server),
POP3, IMAP
– FTP (internet services that permits users to transfer files from the
server to client computer, vise versa.

• Utility programs
– Ping (program used to check the connection btw client and server)
– Tracert (route-tracing used to follow the path of message)

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The Internet Today
• Internet growth has boomed without disruption
because of:
– Client/server computing model – highly extensible
– Hourglass, layered architecture – each layer can change without
disturbing other layers. E.g the technology to move the message
faster without disturbing desktop application running.

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The Current Structure of the Internet
Network Architecture

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Limitations of the Current Internet
• Bandwidth limitations
– Slow peak-hour service (insufficient capacity)

• Quality of service limitations

– Latency – delays due to uneven flow of information packets and
notice in streaming video and telephone call

• Network architecture limitations

– Identical requests are processed individually (the server attends
each request individually).
– Different from television where the programs broadcasted once to
all.

• Wired Internet
– Still using cables where the Copper cables are too old and
expensive fiber-optic cables
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The Web
“Without Web, no e-commerce”
• 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
• 1995: Microsoft Internet Explorer

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Understand How the Web Works
These key concepts are important to understand how
the web works.
• Hypertext
• HTTP
• URLs
• HTML
• XML
• Web server software
• Web clients
• Web browsers
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What is 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
– .com known as top-level domains

• URL is the address used by a browser to identify

the location of content on the Web.

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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 data on web pages
– HTML5 the newest version

• eXtensible Markup Language (XML)

– Designed to describe data and information
– Tags used are defined by user

– The HTML and XML is used in combination for information display

and data description

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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
– Basic capabilities: Security services, FTP, search engine, data
capture

• 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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 What is Web Browsers
A software program
• Primary purpose is to display web page, but may
include added features such as e-mail
– Google’s Chrome: 51% of desktop market,
52% mobile market (the most popular web
browser)
 Open source
– Internet Explorer: 30% of desktop, >2% mobile
– Mozilla Firefox: 8% desktop, >1% mobile
 Open source
– Apple’s Safari: 4.5% desktop, 28% mobile
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The Internet and Web: Features
• How the Internet and Web Features support e-
commerce:
– Communication tools
– Search engines
– Downloadable and streaming media
– Web 2.0 applications and services
– Virtual reality and augmented reality
– Intelligent personal assistants

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Mobile Apps
• Use of mobile apps has exploded
– Have become most popular entertainment media
– Always present shopping tool
– Almost all top 100 brands have shopping app

• Platforms
– iPhone/iPad (iOS), Android, Windows Phone

• App marketplaces
– Google Play, Apple’s App Store, Windows Phone Marketplace

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