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Copyright © 2020, 2019, 2018 Pearson Education, Inc. All Rights Reserved ©Bowen Hui, Beyond the Cube Consulting Services Ltd. ACS 3907 E-Commerce Lecture 1-2 Instructor: Kerry Augustine

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Page 1: ACS 3907 E-CommerceTitle: ACS 3907 E-Commerce Author: Kerry Augustine Created Date: 1/6/2020 2:54:08 AM

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ACS 3907E-Commerce

Lecture 1-2

Instructor: Kerry Augustine

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E-Commerce Infrastructure: The Internet, Web, and Mobile Platform

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Learning Objectives

1. Discuss the origins of, and the key technology concepts behind, the Internet.

2. Explain the current structure of the Internet.

3. Understand how the Web works.

4. Describe how Internet and web features and services support e-commerce.

5. Understand the impact of mobile applications.

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The Internet

• Worldwide Web (WWW) network of computer networks built on common standards

• Created in late 1960s

• Services include the Web, e-mail, file transfers, and so on

• Can measure growth by number of Internet hosts with domain names

4

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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

• 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 Internet1961–Present

• Innovation Phase, 1964–1974

– 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 and the Evolution of Corporate Computing

Figure 1.11

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The Internet: Key Technology Concepts

• Three important concepts:1. Client/server computing

2. Packet switching

3. TCP/IP communications protocol

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1. Client/Server Computing

• Powerful personal computers (clients) connected in network with one or more servers

• Servers perform common functions for the clients

– Storing files

– Software applications

– Access to printers, and so on

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Client/Server Computing

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Overview of a (Client/ Server) Web Session

12

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• Primary Internet access is now through tablets and smartphones

• Tablets supplement PCs for mobile situations

– Over 160 million people in U.S. use Internet with tablets

• Smartphones are a disruptive technology

– New processors and operating systems

– Over 230 million in U.S. access Internet with smartphones

The Mobile Platform

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

• Firms and individuals obtain computing power and software over Internet

• Three types of services

– Infrastructure as a service (IaaS)

– Software as a service (SaaS)

– Platform as a service (PaaS)

• Public, private, and hybrid clouds

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• Drawbacks

– Security risks

– Shifts responsibility for storage and control to

providers

• Radically reduces costs of:

– Building and operating websites

– Infrastructure, IT support

– Hardware, software

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

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2. Packet Switching

• Slices digital messages into packets

• Sends packets along different communication paths as they become available

• Reassembles packets once they arrive at destination

• Uses routers – Special purpose computers that interconnect the computer networks

that make up the Internet and route packets

– Routing algorithms ensure packets take the best available path toward their destination

• Less expensive, wasteful than circuit-switching

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Packet Switching

• Figure 3.3, Page 117

© 2014 Pearson Education, Inc. Publishing as Prentice Hall 17

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Routing Internet Messages: TCP/IP and Packet Switching

• Figure 3.5, Page 120

18

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3. TCP/IP

• Transmission Control Protocol (TCP) – Establishes connections among sending and receiving Web computers

– Handles assembly of packets at point of transmission, and reassembly at receiving end

• Internet Protocol (IP) – Provides the Internet’s addressing scheme

• Four TCP/IP layers– Network interface layer

– Internet layer

– Transport layer

– Application layer

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The TCP/IP Architecture and Protocol Suite

• Figure 3.4

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Internet (IP) Addresses

• IPv4

– 32-bit (2³²)binary number

– Four sets of numbers marked off by periods: 201.61.186.227

• Class C address: Network identified by first three sets, computer identified by last set

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IPv6• June 6, 2012, Internet Society launched

IPv6

• 128-bit addresses, able to handle up to 1 quadrillion addresses

• written as 6 sets of hexadecimal numbers marked by colons

• e.g.. 2001:db8:85a3::8a2e:370:7334

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World Wide Web - Architecture

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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)– Address used by Web browser to identify location of

content on the Web

– For example: http://www.azimuth-interactive.com/flash_test

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Other Internet Protocols and Utility Programs

• Internet protocols

– HTTP

– E-mail: SMTP, POP3, IMAP

– FTP, Telnet, SSL/TLS

• Utility programs

– Ping

– Tracert

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Networks

• Network Service Provider (NSP) = provides direct access to the backbone

• Internet Exchange Point (IXP) = hubs where backbone intersects regional networks– Also called Network Access Point (NAP)

– Also called Metropolitan Area Exchange (MAE)

• Wide Area Network (WAN)

• Local Area Network (LAN)

• Router = device that connects two or more networks

• Intranet = network internal to an organization

• Extranet = intranet that allows outsider access– Supports business-to-business transactions

26

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Internet Network Architecture

• Figure 3.12, Page 129

27

Metropolitan Area Exchange

Network Access Point

Post Office Protocol

Simple Mail Transfer Protocol

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Internet Backbone and Exchange Points

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Internet Exchange Point (IXP)

• An Internet exchange point (IXP) enables local networks to efficiently exchange information at a common point within a country rather than needing to exchange local Internet traffic overseas.

• An IXP is a component of Internet infrastructure that can increase the affordability and quality of the Internet for local communities.

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ISPs and Connection Types

• Internet service provider (ISP)– Buy Internet access wholesale from NSPs

– Retail access to business or individuals

• Common connection types:– Dialup = uses telephone modem

– Digital subscriber line (DSL) = high speed access using phone line

– Cable modem = piggybacks on top of analog video cable for TV signals

– T1 = international phone standard for digital communication

– T3 = faster version of T1

30

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Comparison of Connection Types

31

Service Cost Per Month Speed (Mbps) Time to Download a 10MB file

TelephoneModem

$10 - $25 0.030 - 0.056 Kbps 25 minutes

DSL $15 - $50 1 - 20 Mbps 1.33 minutes@1Mbps

Cable Modem $20 - $50 0.768 - 5 Mbps 8 seconds@10Mbps

T1 $300 - $1200 1.54 Mbps 52 seconds

T3 $2500 - $10,000 45 Mbps 2 seconds

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Wi-Fi Networks

• Figure 3.15, Page 145

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Intranet Architecture

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Who Governs the Internet?

• Organizations that influence the Internet and monitor its operations include:– Internet Corporation for Assigned Names and Numbers (ICANN)

– Internet Assigned Numbers Authority (IANA)

– Internet Engineering Task Force (IETF)

• Internet Research Task Force (IRTF)

• Internet Engineering Steering Group (IESG)

• Internet Architecture Board (IAB)

– Internet Society (ISOC)

– Internet Governance Forum (IGF)

– World Wide Web Consortium (W3C)

– North America Internet Network Operators Groups (NANOGs)

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ICANN

• Internet Corporation for Assigned Names and Numbers

• 2014 - expand the number of generic top-level Internet domains (gTLDs).

• Add over 1,000 new naming options

• The first seven –.bike, .clothing, .guru, .holdings, .plumbing, .singles, and .ventures –

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Limitations of the Current Internet

• Bandwidth limitations

– Slow peak-hour service

• Quality of service limitations

– Latency

• Network architecture limitations

– Identical requests are processed individually

• Wired Internet

– Copper and expensive fiber-optic cables

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The Web

• Most popular Internet service

• Developed in early 1990s

• Provides access to Web pages

– HTML documents that may include text, graphics, animations, music, videos

• Web content has grown exponentially

– Google reports 30 trillion unique URLs; 120 billion Web pages indexed

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The Web 1.0

• 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– Andreessen, Jim Clark

• 1995: Microsoft Internet Explorer

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Source: NASDAQ quotes taken from Factiva.com.

The Evolution of the Web

'Stock market crash'

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Year1995 1996 1997 1998 1999 2000 2001 2002 20031994

Points

Launch of Amazon.com

'Synergy''Grassrootsof eBusiness' 'Rise of the Internet'

321

– 45%

2004 2005 2006

4

2007

Web 1.0“Business Web”

Web 2.0“Social Web”

39

1995–2000: Invention 2001–2006: Consolidation

During the past decade, eBusiness companies have passed through four distinct periods, as is reflected in the evolution of the NASDAQ

2007–Present:Reinvention

Web 3.0“Semantic Web”

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Web 1.0 - Web 2.0 - Web 3.0

• Web 1.0 = display simple pages, allow non-linear navigation

• Web 2.0 = user-centered applications and social media technologies

– User-generated content and communication

– Highly interactive, social communities

– Large audiences; yet mostly unproven business models

– Examples: Twitter, YouTube, Instagram, Wikipedia, Tumblr

• Web 3.0 = Semantic Web = The Intelligent Web = Internet of Things

– Convergence of several emerging technology trends: Ubiquitous Connectivity (i.e. mobile devices); Network Computing (SaaS); Open Technologies (i.e. open API’s, open data, open source); Open Identity (i.e. portable identity and personal data)

40

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“Happy Birthday” - Web Turned 25 (2014)

The Web RisingIn 1995, just two years after the debut of the NCSA Mosaic browser, 14% of US adults used the Internet, according to the Pew Research Center. Today, that figure stands at 87%, and it's hard to imagine what the 13% who are not using the Net are doing.Image credit: Pew Research Center

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Web Browsers

• A software program used to locate and display Web pages

• Includes text, graphics, and multimedia content

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Web Browsers

Chrome Firefox IE Safari

Opera Edge Android

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Web Servers and Web Clients

• Web server = software that enables computer to deliver web pages to client computers on a network

• Hypertext transfer protocol (HTTP) = protocol for requesting web pages

• Hypertext mark-up language (HTML) = language for writing web pages

• Web client sends HTTP requests and displays HTML pages

• Additional services provided by web servers– Security – authenticates site access

– File transfer protocol (FTP) – transfers files to/from server

– Search engine – indexes and facilitates searches within site

– Data capture – monitors site traffic

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Web Addresses & Domains

Domain• Identifies the Website (host)

• Comes in many suffixes such as:.edu (educational institutions).org (organizations; non-profit).mil (military).net (network organizations)

Example: microsoft.comuwinnipeg.ca

(URL) Uniform Resource Locator

• Identifies particular Web pages within a domain

Example: http://www.microsoft.com/security/default.mspx

IP Address• Each domain is associated with one or

more IP addresses

• Format: a 32-bit address written as 4 numbers (from 0-255) separated by periods

Example: 1.160.10.240

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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

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HTTP Example

Client Request

Server Response

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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 Web pages

– HTML5 the newest version

• eXtensible Markup Language (XML)

– Designed to describe data and information

– Tags used are defined by user

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The Internet and Web: Features

• Features on which the foundations of e-commerce are built:

– E-mail

– Instant messaging

– Search engines

– Online forums and chat

– Streaming media

– Cookies

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Web 2.0 Features and Services

• Online Social Networks

– Services that support communication among networks of friends, peers

• Blogs

– Personal Web page of chronological entries

• Really Simple Syndication (RSS)

– Program that allows users to have digital content automatically sent to their computers over the Internet

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Web 2.0 Features and Services

• Podcasting

– Audio presentation stored as an audio file and available for download from Web

• Wikis

– Allows user to easily add and edit content on Web page

• Music and video services

– Online video viewing

– Digital video on demand

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Web 2.0 Features and Services

• Internet telephony (VoIP)– Voice over Internet Protocol (VoIP) uses Internet to transmit

voice communication

• Video conferencing, video chatting, and telepresence

• Online software and Web services– Web apps, widgets, and gadgets

• Software that interacts with the user through voice commands– Natural language; conversational interface

– Situational awareness

– Interpret voice commands to interact with various Web services

– Examples: Apple (Siri) | Google Feed | Google Assistant

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Virtual Reality and Augmented Reality

• Virtual reality (VR)

– Immersing users within virtual world

– Typically uses head-mounted display (HMD)

– Oculus Rift, Vive, PlayStation VR

• Augmented reality (AR)

– Overlaying virtual objects over the real world, via mobile devices or HMDs

– Pokémon GO

• Five best AR Commerce examples (Oberlo)

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Insight on Technology: Leaping into the Future with AR and VR

• Class Discussion

– What are some of the challenges to the widespread adoption of AR and VR?

– Why are major players such as Facebook, Google, Apple, Amazon, and telecommunications companies so interested in AR and VR applications?

– Have you used any e-commerce-related AR or VR applications? If you have, did you find them to be useful? What did you like about them? What didn’t you like?

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Mobile Apps

• Use of mobile apps has exploded

– Most popular entertainment media, over TV

– Always present shopping tool

– Almost all top 100 brands have an app

• Platforms

– iPhone/iPad (iOS), Android

• App marketplaces

– Google Play, Apple’s App Store, Amazon’s Appstore

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The Future Internet – Web 3.0• The Internet2 Project

– Consortium of 350+ institutions collaborating to facilitate revolutionary Internet technologies

– Guaranteed service levels and lower error rates

• Ability to purchase the right to move data through network at guaranteed speed in return for higher fee

– Declining costs

• The Internet of Things (IoT)

– Objects connected via sensors/RFID to the Internet

– 8 ways the Internet of things will change the way we live and work

– 16 Stunning Statistics that Forecast the Future of the Internet of Things

Page 57: ACS 3907 E-CommerceTitle: ACS 3907 E-Commerce Author: Kerry Augustine Created Date: 1/6/2020 2:54:08 AM

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Internet of Things (IoT Institute)