MSIT 175 Electronic Commerce Theory and Practice

1
MSIT 175Electronic Commerce Theory and Practice

• Lecture 3 - Electronic Commerce Architecture and
  Infrastructure
• (Adapted from Dr. Ahmad Kayed, Monash University
  E. Lawrence et al., Technology of Internet
  Business, John Wiley, 2002)

2
Part I

• Internet and World Wide Web

3
Part I - Outline

• An Overview of the internet
• Brief history of the web
• Web system architecture
• Uniform resource locator
• Overview of the hypertext transfer protocol
• Hypertext Transfer Protocol(HTTP)
• Generation of dynamic web pages
• Cookies
• HTTP/1.1

4
Basic Network Architecture
5
Layered Model for the Internet
6
Processing at Each Layer
7
Transfer of Packets
8
Different Internet Access Methods
9
Different Classes of IP Addresses
10
Simple Routing Example
11
Common Application Layer Protocols
12
Part of the DNS tree
13
Web System Architecture
Database
14
URL

• Used to identify web pages
• protocol//domain_nameport/directory/resource
• Example
• http//www.vbs.com/welcome/main.html
• General format
• protocol//usernamepassword_at_domain_nameport/dire
  ctory/resource

15
Request Methods in HTTP/1.0

• GET
• HEAD
• POST

16
General Headers in HTTP/1.0

• Date
• Pragma

17
Request Headers in HTTP/1.0

• Authorization
• From
• If-modified-Since
• Referer
• User-Agent

18
Entity Header in HTTP/1.0

• Allow
• Content Encoding
• Content Length
• Content Type
• Expires
• Last-Modified

19
Commonly Used Status Codes in HTTP/1.0
20
Commonly Used Response Header in HTTP/1.0

• Location
• Server
• WWW-Authenticate

21
Generating dynamic web pages

• Attach names and values at the end of the URL
  using a query string
• ?name1value1 name2value2. nameNvalueN
• Example
• http//www.vbs.com/servlet/booksearch?titleecomme
  rceyear2000
• GET /servlet/booksearch?titleecommerceyear2000
  HTTP/1.0

22
Cookies

• Invented by Netscape.
• Save state data at client side.
• Visit http//www.netscape.com/newsref/std/cookie_s
  pec.html
• Standardized
• Server
• Set-Cookie NameValue
• Client
• Cookie NameValue

23
HTTP/1.1

• Persistent connection
• Pipelining
• Efficient use of IP addresses
• Best support for
• caching
• authentication
• language
• encoding
• More request methods

24
Part II

• Electronic Commerce and World Wide Web

25
Network Infrastructure

• The communications infrastructure required for
  electronic trading is analogous to the pipework
  of the process, that which enables messages to
  flow between trading partners.
• Different options are available, such as
  exchange of disks or tapes to private networks.
• However the availability of internet as made it
  as the de-facto network infrastructure for EC.

26
Internet and www

• Interconnected networks and supporting software
  have given us file transfer capabilities,
  electronic mail, news groups, and the world wide
  web (WWW). Of these the WWW has effected the
  marketplace like no previous application. It is
  possible that web use could become as common as
  the telephone. It is an information sharing
  architecture that integrates online content and
  information servers in a fast, cost-effective,
  easy to use manner. It is and will be the
  software foundation on which many emerging
  Electronic Commerce (EC) are and will be based.

27
The internet and Network Structure

• The bandwidth progression of internet is1969
  9.6Kbps1985 56 Kbps1987 1.544 Mbps (through
  T1)1989 45 Mbps2000 155-1000 Mbps

28
The internet and Network Structure
29
Current Network Research

• Current local networks operating at speeds
  ranging from dial-up modems (34.4Kbps) to high
  speed LANS (100Mbps).
• In wide area networks, regional networks
  typically offer 1.5Mbps access lines to the
  national backbone and some networks operate
  around 45 Mbps.
• Gigabit networks (gt1000Mbps) will be become a
  major part of the internetworking infrastructure
  in the near future.

30
The goals of gigabit network are

• To advance the technology and understanding of
  the requirements for high speed networking by
  developing architectural alternatives in
  determining the possible structure of a next
  generation wide area gigabit network
• To explore potential applications for such a
  network that are of importance to business and
  society in general.

31
Internet History

• Internet established in 1960 in the US for
  non-profit organisations
• Mid 1980s the National Science Foundation (NSF)
  created high speed long distance
  telecommunications network into which other
  networks could be linked
• By 1991 the NSF had dropped its restrictive usage
  policy

32
World Wide Web

• Arrival of WWW caused the business community to
  take notice
• Web is a graphical hypertext environment that
  operates within the Internet
• The protocol that underpins the Web is Hypertext
  Transfer Protocol (HTTP)
• E-business and use of Secure Hypertext Transfer
  protocol

33
What is Web itself?

• Based on a three part architecture
• HTML -Hypertext Markup language Provides for
  the formatting and hyperlinking of web pages.
• HTTP Hypertext Transfer Protocol The protocol
  that defines interaction between web servers and
  web browsers.
• CGI Common Gateway Interface The interface that
  allows programs to be invoked from web servers.

34
Web architecture
35
In EC terms

• The architecture is used to build software
  functionality that is distributed amongst
• application servers (where the application sits)
• data servers (where most of the data sits)
• a group of client computers (where the
  applications are used).

36
On the internet

• Open standards leading to interoperability. The
  Web is inexpensive, open, and transparent
  (multi-platform).
• Ease of use Authoring and use is relatively
  simple.
• Effective middleware The web is increasingly
  being used as middleware insulation against the
  layers below application and the complexity of
  heterogeneous software and hardware.

37
On the internet

• In the role of middleware (the web)
• Isolates applications from system interfaces
• Enables comprehensive data access and management
  services
• Provides open communication interfaces for
  distributed applications
• Enables workflow integration
• Supports software distribution and upgrade
  management
• Provides security for transaction based
  applications (but little reliability!!).

38
The web is popular due to

• Ease of information navigation and use
• Ease of content publishing
• New distribution models
• Establishing network centric computing paradigm
• Enabling new intra-business applications.

39
The Web and EC

• One might use the web in an EC context for
• attracting new customers through marketing and
  advertising
• serving existing customers via customer service
  and support functions
• developing new markets and distribution channels
  for existing products
• developing new information based products.

40
Marketing and Advertising

• Marketing and advertising
• brand name management
• dissemination of product catalogue and sales
  information
• product announcements
• location, location, location versus content,
  content, content!
• direct sales to customers
• new advertising challenges.

41
Customer Sales and Support

• new distribution channel for software, patches
  and support information
• customer interaction and query capability
• new avenues for customer relationships (more
  direct contact)
• access to government information

42
Developing New markets and distribution Channels

• build on current assets (transfer to web) brand
  name recognition, operation infrastructure,
  information, and customer relationships
• online charging of services (multimedia,
  information search, games, etc.)
• major implications to software industry (sales,
  support, add-ons)

43
Developing new online products/services

• online search
• education and entertainment
• search the web for many examples

44
Technology for the New Age of BusinessThe
Internet

• It is a public, cooperative, and self sustaining
  facility used by hundreds of millions of people
  worldwide
• Uses a portion of the total resources of the
  currently existing public telecommunications
  network
• What distinguishes the Internet is its use of a
  set of protocols called TCP/IP

45
Intranets

• Privately developed networks that operate within
  organisations
• Intranets operate as separate networks within the
  operations of the Internet

Intranet
46
Extranets

• Links businesses to their suppliers using
  Internet technology
• These networks are not always in the public
  domain
• One example is SITA supporting booking systems of
  most airline companies

47
Extranet VPN
Internet
Firewall
Intranet
VPN
Extranet
48
Extranets

• Wide Area Networks (WANs) can span a large
  geographical area
• Nodes on the network may communicate via
  telephone wires or satellites
• Local Area Networks are normally restricted to
  one geographic region or department such as a
  university department

49
Extranets

• Groupware is software shared on extranets such as
  Lotus Notes and Microsoft Exchange
• http//www.microsoft.com
• Attention must be paid to appropriate security
  measures

50
Benefits of the Extranet

• The Extranet
• Provides a meeting place for trading partners
  with a vested interest in their supply chain
• Provides a simple,effective means of attaining
  and sustaining critical mass among e-commerce
  trading partners
• Allows the customer to participate in the
  decision making process

51
Extranet Architecture

• Based on infrastructure and protocols of the
  Internet
• TCP/IP for networking
• HTML and XML for presentation and interpretation
  of information

52
Extranet Architecture

• TCP/IP DEPLOYMENT
• The corporate network must ensure an IP
  application is installed across machines
• BROWSER
• Communicates with the network and web server
• WEB SERVER
• Supplies web pages to customers
• REMOTE ACCESS SERVER
• A multi-protocol remote access server links
  remote users to corporate resources

53
Internet Communication

• Client requests a specific page
• Server locates page and serves it up to client as
  a transaction
• Pages identified by URL
• Pages are bundled into packets for transmission
• Uses Transmission Control Protocol/Internet
  Protocol (TCP/IP)

54
Website Technology

• In house versus Hosting
• In house
• Company owns and manages its webserver computer
  and connection to the Internet
• Hosting
• Another firm owns and manages the webserver
  computer and connection to the Internet

55
TCP/IP Protocol Suite

• Generally accepted industry standard for
  communication among open systems.
• Continuously developed under Internet Engineering
  Task Force (IETF)
• TCP/IP covers the network, transport, session,
  presentation and application layers of the (Open
  Systems Interconnection) OSI model

56
OSI (seven Layers)

• Layer 7 The application layer...This is the
  layer at which communication partners are
  identified, quality of service is identified,
  user authentication and privacy are considered,
  and any constraints on data syntax are
  identified. (This layer is not the application
  itself, although some applications may perform
  application layer functions.)
• Layer 6 The presentation layer...This is a
  layer, usually part of an operating system, that
  converts incoming and outgoing data from one
  presentation format to another (for example, from
  a text stream into a popup window with the newly
  arrived text). Sometimes called the syntax layer.
  
• Layer 5 The session layer...This layer sets up,
  coordinates, and terminates conversations,
  exchanges, and dialogs between the applications
  at each end. It deals with session and connection
  coordination.
• Layer 4 The transport layer...This layer manages
  the end-to-end control (for example, determining
  whether all packets have arrived) and
  error-checking. It ensures complete data
  transfer.
• Layer 3 The network layer...This layer handles
  the routing of the data (sending it in the right
  direction to the right destination on outgoing
  transmissions and receiving incoming
  transmissions at the packet level). The network
  layer does routing and forwarding.
• Layer 2 The data-link layer...This layer
  provides synchronization for the physical level
  and does bit-stuffing for strings of 1's in
  excess of 5. It furnishes transmission protocol
  knowledge and management.
• Layer 1 The physical layer...This layer conveys
  the bit stream through the network at the
  electrical and mechanical level. It provides the
  hardware means of sending and receiving

57
Protocols at network layer

• Internet Protocol - IP
• data exchange between servers and receivers by
  sending datagrams through several networks
• Address Resolution Protocol - ARP
• resolves internet addresses to hardware addresses
• Internet Control Message Protocol - ICMP
• supports exchange of control information such as
  error messages

58
Protocols at the transport layer

• Transmission Control Protocol - TCP
• sending data in the right sequence to the
  appropriate process
• communicating to the sender an acknowledgement
  of delivery
• User Datagram Protocol - UDP
• data exchange between application processes but
  no acknowledgement to the sender

59
Protocols at the session, presentation and
application layers

• File transfer protocol - ftp
• transfer of files between different systems
• telnet provides the communications necessary for
  terminals to use application processes in the
  host computer
• Simple Mail Transfer Protocol - SMTP
• using a central server called SendMail for
  message routing
• network control, error handling, user services

60
Other Protocols

• PPP - Point to Point Protocol via serial line
• CSLIP - Compressed Serial Line IP
• SLIP - Serial Line Internet Protocol
• POP - Post Office Protocol - electronic mail
• cf POP - Point of Presence

61
TCP/IP

• Standards are simple
• Often have Simple in the name eg SMTP
• Standards and products are developed quickly
• Products are inexpensive and developed quickly
• Used over large range
• On the Internet
• In many corporate networks

62
Transport Layer

• Allows different computers to communicate
• Do not have to know what kind of computer the
  webserver is
• Client machine can be Windows, Macintosh, others
• TCP standard is used at this layer

63
The web and intra-business commerce

• Based on intranets. Intranets used to facilitate
• faster internal corporate communications
• more coordinated work activities
• easier management of complex operations with
  online transaction processing
• better management decision support with online
  analytical transaction processing
• better systems management by enabling
  maintenance and distribution of applications.

64
The web and intra-business commerce

• Within this context the web can assist in the
  following ways
• one to many applications that enable teams,
  departments, or entire corporations to set up
  information pages, reducing bulky, easily
  outdated, paper-based information.
• Cost of print and update should be reduced by
  this.
• many to many applications to share/broadcast
  information (bulletin boards, etc.)
• better organization

65
The web and intra-business commerce

• information access, integration and analysis
• reduce access times (memos, faxes, post, etc.)
• excellent base for groupware
• integration and improved access to information
  stored in transaction databases (improved online
  transaction processing.

66
Example of business process transactions
67
Methods for Creating a Commercial Web Site
(Elaine Lawrence, TECHNOLOGY OF INTERNET BUSINESS)

• Tailored solutions
• www.sofcom.com.au
• IBM, Lotus, Microsoft
• Getting consultants
• Specialist firms such as Spike
• Doing it yourself
• Business in a Box

68
Example of Technology Web Site

• Item
• Database
• Network file server
• Workstations
• Internet Server
• Bandwidth

• Details
• MSAcces
• IBM Infinity 5500
• Pentiums 4
• Compaq Proliant
• Direct connection

• Type
• RDB
• MS Backoffice
• NT
• NT Server IIS 4.0 and
• dual 512 Kb

69
Essentials for a Commercial Web Site

• Dedicated connection
• Internet Service Provider
• Melbourne IT
• Now NetRegistry
• Network device to connect to Internet - modem or
  terminal adapter
• Server

70
Hardware configurations for large enterprise

• 3000 Workstations connected
• 1000 -
• 1000 - NT
• 1000 - Macs

• Servers
• 70 Novell, 40 NT
• 20 Unix
• 100 Macintosh
• (average size of hard disks - 80 gigabytes)

71
Hardware configurations for large enterprise
(continued)

• Server Memory

• Processors
• Alpha processors
• Pentium processors
• Power PC processors
• SUN, HP, Silicon Graphics and Unix processors

72
Hardware configurations for medium enterprise

• 80 workstations
• Operating system
• Server hard disk
• RAM
• Pentium

73
Software on server may include

• Directory indexing software
• Audit log files
• Access control software
• Common Gateway Interface
• To check out Top Developers and Top Servers see
• http//www.netcraft.co.uk/survey

74
Ultranets

• This will exist once Internet tools mature into
  next phase
• Building blocks for the Ultranet include
• Java
• Internet protocol version 6
• Secure electronic transactions (SET)
• Object orientated database management systems
  (OODBMS)
• Extensible Markup Language (XML)

75
Hypertext Transport Protocol

• HTTP is the most basic protocol by which HTML
  resources are fetched across network connections
• Hypertext is software technology that allows for
  fast and flexible access to information

76
Transmission Control Protocol/Internet Protocol

• TCP/IP is the set of communication protocols used
  by the Internet to connect dissimilar systems and
  control the flow of information
• IP is a packet forwarding protocol that splits up
  packets automatically to send large messages
  across the networks, then reassembles them at
  destination

77
Bluetooth

• Jini Initiative enables desktop computers, PDAs
  and mobile phones to collaborate
• Bluetooth Wireless Personal Area Networking
  (WPAN) creates a bubble of wireless connectivity
  for personal electronic devices

78
Uniform Resource Locators

• This is the unique address of a web page
• Each URL defines
• Internet protocol being used
• The server on which the web site is stored
• The path that will transmit the document
• Internet uses a IP address to send data to a
  specific destination computer

79
Browsers

• Web browsers are software packages enabling users
  to access sites
• Technically a client program using HTTP to make
  requests of web servers throughout the Internet
  for the user
• Netscape Navigator and Internet Explorer are
  highly competitive browsers
• Opera new browser

80
Client/server Architecture

• Refers to a pair of machines or a pair of role
  designations
• A client requests services and a server provides
  them.

81
JAVA

• The programming language used as a software
  development tool designed for use in a
  distributed environment
• JAVA applets are small programs written in JAVA
  that are downloaded onto client machines where
  they execute

82
Search Engines

• Assist the user in finding web pages
• Contains three parts as seen in table 1.7
• An alternative is exploring a structured
  directory
• Resource Definition Format (RDF) is a highly
  flexible way of indexing collections of resources

83
EDI

• EDI protocol allows
• One way or simplex mode of data transmission
• Two way or duplex mode
• In most instances, transmission occurs in one
  direction or half duplex mode

84
How the Internet Works

• Most basic protocol is TCP/IP
• Other protocols used on the Internet
• Point-to-point protocol (PPP)
• Serial Line Internet Protocol (SLIP)
• Post Office Protocol (POP)
• The development of these types of protocol has
  enabled more complex operations on the web

85
How the Internet Works

• Development of the WWW
• Web allows the user to interchange between
  documents using hypertext
• This allows the Internet to establish a link to
  another document using a hotlink or hyperlink
• The protocol that enables these hotlinks is the
  Hypertext Transfer Protocol (HTTP)

86
SGML

• In the 1980s the International Organisation for
  Standardisation release a standard generalised
  markup language (SGML)
• Defines documents in plain text using tags
  embedded in the text to specify the definition

87
HTML HTTP

• HTML is a form of SGML with a specified
  document-type definition
• HTTP is a multimedia transport protocol
• It does not process the packages of data it
  transmits, it allows users to search for data
• It allows databases to interact and information
  to be manipulated

88
The Web

• What defines the web and differentiates it from
  other networks
• HTTP
• The ability of servers to support it
• The transmission of data within these pages
  relies on the simplicity and speed of HTTP

89
Other Protocols

• In addition to the TCP/IP and HTTP protocols the
  Internet uses
• FTP file transfer protocol
• SMTP simple mail transfer protocol
• MIME Multipurpose Internet Mail Extensions

90
Architecture of the WWW

• The Web is based on three-part architecture.
• HTML describes the contents of web pages on the
  Internet
• HTTP allows servers and browsers to communicate
• A Common Gateway Interface CGI used by a web
  server to run a separate program that contains
  dynamic information, format it to HTML and send
  it on to the web server

91
ISPs

• There are many levels involved on the Internet
• Individuals can connect directly and via an
  intranet to an ISP
• ISP is connected to an Internet access provider
• This is connected to a National Access Provider
• This is connected to a very-high-speed backbone
  (or spine) network service (VBNS)

92
EMail

• Most popular Internet application
• Allows the transmission of messages and files
  over a computer network
• IMAP Interactive Mail Access Protocol
• Allows user to view subject and sender, as well
  as attachments before they download
• An email address consists of a user name and a
  domain name

93
Information Systems and Internet Commerce

• The connection can be explained by the following
  definitions
• IS (information system) is the collection of
  technical and human resources that provide
  storage, computing, distribution and
  communication
• IS (information services) is a name for an
  organisation within an enterprise that is
  responsible for its data processing and
  information system or systems

94
Methodologies

• Managing the change to electronic business models
  requires many information technology
  methodologies to be invoked
• Later we will examine new methodologies such as
  Rapid Application Development (RAD) and Joint
  Application Development (JAD)

95
eCommerce as a Management Tool

• Unfortunately many managers are not technically
  literate
• Organisations need to develop strategies that
  enable them to cope with rapid change and the
  accelerating nature of information flows
• Internal bureaucracies are the natural enemies of
  electronic commerce they may stifle competition