IT_8005_Electronic Commerce_Unit_I

IT8005 – Electronic Commerce
IV Year / VIII Semester

OBJECTIVES
 To understand the Technology, infrastructure and Business in E-
Commerce.
 To learn the E-Commerce Platform and its concepts.
 To understand the Security and Challenges in E-Commerce.
 To build an Own E-Commerce using Open Source Frameworks.
 To know the different business model key components and
developing a E-Commerce using platforms.

UNIT I INTRODUCTION TO E-COMMERCE
AND TECHNOLOGY INFRASTRUCTURE
Working of Web - HTML Markup for
Structure - Creating simple page - Marking up
text - Adding Links - Adding Images - Table
Markup - Forms - HTML5.

E - Commerce
E-commerce involves the use of the Internet,
the World Wide Web (Web), and mobile apps
and browsers running on mobile devices to
transact business.

Working of Web
 Internet:
 An interconnected network of thousands of networks and
millions of computers linking businesses, educational
institutions, government agencies, and individuals.
 The Internet provides services such as e-mail, apps,
newsgroups, shopping, research, instant messaging, music,
videos, and news.

Working of Web
 Web:
 Internet’s most popular services, providing access to
billions, perhaps trillions, of web pages, which are
documents created in a programming language called
HTML that can contain text, graphics, audio, video,
and other objects, as well as “hyperlinks” that permit
users to jump easily from one page to another.

Trends in E-Commerce Infrastructure
 Business:
 Mobile devices become the primary access point to social
network services and a rapidly expanding social marketing and
advertising platform.
 create a foundation for location-based web services and business
models.
 Explosion of Internet content services and mobile access
devices.

 Business:
 The growth in cloud computing and bandwidth capacity enables
new business models for distributing music, movies, and
television.
 Search becomes more social and local, enabling social and local
commerce business models.
 Big data creates new business opportunities for firms with the
analytic capability.

 Technology:
 Mobile devices have become the dominant mode of access to
the Internet.
 Cloud computing reshapes computing and storage.
 The Internet runs out of IPv4 addresses; the transition to IPv6
continues.
 The Internet of Things, with millions of sensor-equipped
devices connecting to the Internet.

 Technology:
 Augmented reality and virtual reality hardware begin to
gain grip.
 Funding of artificial intelligence technologies explode to
consumer-oriented personal assistants.
 HTML5: visually rich and lively as native mobile apps.

 Society:
 Government control over, and surveillance of, the Internet is
expanded in most advanced nations, and in many nations the
Internet is nearly completely controlled by government agencies.
 The growing infrastructure for tracking online and mobile
consumer behavior conflicts with individual claims to privacy
and control over personal information

Evolution of the Internet
 Phases:
 Innovation ( 1961 – 1974)
 Institutionalization (1975 – 1995)
 Commercialization ( 1995 to the present)

 Phases - Innovation ( 1961 – 1974):
 Introduction of packet-switching hardware, a
communications protocol called TCP/ IP, and
client/server computing.
 The Internet’s original purpose was to link large
mainframe computers on different college campuses.

 Phases – Institutionalization ( 1975 – 1995):
 The U.S. Department of Defense (DoD) and the
National Science Foundation (NSF) provided
funding and legitimization for the fledging
Internet.

 Phases – Institutionalization ( 1975 – 1995):
 The DoD contributed $1 million to further
develop them into a robust military
communications system.
 In 1986, the NSF assumed responsibility for the
development of a civilian Internet.

 Phases – Commercialization( 1995 to the
present):
 Private corporations to take over and expand the
Internet backbone as well as local service beyond
military installations and college campuses to the
rest of the population around the world.

Development of the Internet
Timeline
 1961 - Packet switching is born.
 1973 - Client/server computing is invented.
 1974 - TCP/IP invented
 1984 – hyperlinked introduced
 1984 - Domain Name System (DNS) introduced.

Development of the Internet
Timeline
 1989 - HTML pages is born.
 1994 - The beginning of e-commerce.
 2009 - Internet-enabled smartphones become a
major new web access platform.
 2013 - The Internet of Things (IoT) starts to
become a reality.

Webpage, Website, Web Server and
Search Engine
 Web Page:
 A document which can be displayed in a web
browser such as Firefox, Google Chrome.
 These are also often called just "pages."

Search Engine
 Website:
 A collection of web pages which are grouped
together and usually connected together in various
ways. Often called a "web site" or a "site."

Search Engine
 Web Server:
 A computer that hosts a website on the Internet.
 Search Engine:
 A web service that helps to find other web pages, such as Google,
Bing, Yahoo.
 Search engines are normally accessed through a web browser (e.g.
perform search engine searches directly in the address bar of Firefox,
Chrome, etc.) or through a web page.

The Internet: Key Technology
Concepts
 Internet as a network that uses the IP addressing
scheme, supports the Transmission Control
Protocol (TCP), and makes services available to
users much like a telephone system makes voice
and data services available to the public.

Concepts
 Packet Switching:
 A method of slicing digital messages into discrete
units called packets.
 Then, sending the packets along different
communication paths as they become available, and
then reassembling the packets once they arrive at their
destination.

Concepts
 In packet-switched networks, messages are first
broken down into packets.
 Appended to each packet are digital codes that
indicate a source address (the origination point) and a
destination address, as well as sequencing information
and error control information for the packet.

Concepts

Concepts
 In circuit-switched networks such as the telephone
system, a complete point-to-point circuit is put
together, and then communication can proceed.
 “Dedicated” circuit-switching techniques were
expensive and wasted available communications
capacity.

Concepts
 Rather than being sent directly to the destination address, in a
packet network, the packets travel from computer to computer
until they reach their destination. These computers are called
routers.
 A router is a special purpose computer that interconnects the
different computer networks that make up the Internet and routes
packets along to their ultimate destination as they travel.

Concepts
 To ensure that packets take the best available path toward their
destination, routers use a computer program called a routing
algorithm.
 Packet switching makes nearly full use of almost all available
communication lines and capacity.
 If some lines are disabled or too busy, the packets can be sent on
any available line that eventually leads to the destination point.

Concepts
Circuit Switching Packet Switching
Each data unit know the entire path
address which is provided by the source.
Each data unit just know the final
destination address intermediate path is
decided by the routers.
Data is processed at source system only Data is processed at all intermediate node
including source system.
Reserve the entire bandwidth in advance Does not reserve.
Circuit switching is more reliable. Packet switching is less reliable.
Wastage of resources are more in Circuit
Switching
Less wastage of resources as compared to
Circuit Switching
It is not a store and forward technique. It is a store and forward technique.

Concepts
 Transmission Control Protocol/Internet Protocol (TCP/IP):
 Protocol - a set of rules and standards for data transfer
 To govern the formatting, ordering, compressing, and error-
checking of messages.
 Transmission Control Protocol/Internet Protocol (TCP/IP) has
become the core communications protocol for the Internet.

Concepts
 TCP establishes the connections among sending and receiving
computers, and makes sure that packets sent by one computer are
received in the same sequence by the other, without any packets
missing.
 IP provides the Internet’s addressing scheme and is responsible
for the actual delivery of the packets.

Concepts
 Transmission Control Protocol/Internet
Protocol (TCP/IP):

Concepts
 Transmission Control Protocol/Internet Protocol
(TCP/IP):
 Network Interface Layer: Placing packets on and
receiving them from the network medium.
 The Internet Layer is responsible for addressing,
packaging, and routing messages on the Internet.

Concepts
 The Transport Layer is responsible for providing
communication with other protocols (applications) within the
TCP/IP protocol suite by acknowledging and sequencing the
packets to and from the applications.
 The Application Layer includes a variety of protocols used to
provide user services or exchange data.

Concepts
 IP Addresses – Versions:
 IPv4 Internet address is a 32-bit number that appears
as a series of four separate numbers marked off by
periods, such as 64.49.254.91.
 The first three sets of numbers identify the network
and the last number identifies a specific computer.

Concepts
 IP Addresses – Versions:
 An IPv6 Internet address is 128 bits, so it can
support up to 2128 (3.4×1038) addresses, many
more than IPv4.

Domain Names, DNS and URLs
 Domain Names:
 Domain names are a key part of the Internet
infrastructure.
 They provide a human-readable address for any web server
available on the Internet.
 Any Internet-connected computer can be reached through a
public IP address, either an IPv4 address or an IPv6
address.

 Domain Names, DNS and URLs:
 Computers can handle such addresses easily, but
people have a hard time finding out who's running
the server or what service the website offers.
 IP addresses are hard to remember and might
change over time.

Structure of domain names:
 A domain name has a simple structure made of
several parts, separated by dots and read from right
to left: developer.mozilla.org
 where, org – TLD, mozilla – label 1, developer –
label 2.

Structure of domain names:

Structure of domain names – Top Level Domain:
 The general purpose of the service behind the domain
name.
 TLDs containing .gov are only allowed to be used by
government departments.
 The .edu TLD is only for use by educational and
academic institutions.

Structure of domain names – Label:
 A label is a case-insensitive character
sequence anywhere from one to sixty-three characters
in length.
 It contains only the letters A through Z, digits 0
through 9, and the – character.
 Example: a, 97 and kncet-it-final-year

 Finding an available domain name
 Most of them provide a “whois” service that tells
you whether a domain name is available.

 URL:
 Uniform Resource Locator
 The address used by a web browser to identify the
location of content on the Web.
 Example:http://www.kongunadu.ac.in/kongunadu-
departments/btech-it/profile.html

 URL:
 http – protocol - Usually for websites it is the HTTP
protocol or its secured version, HTTPS.
 www.kongunadu.ac.in – Domain Name, it indicates
which Web server is being requested.
 /kongunadu-departments/btech-it/profile.html – path
to the file.

Client/Server Computing
 Clients are the typical web user's internet-connected devices
and web-accessing software available on those devices.
 Servers are computers that store webpages, sites, or apps.
 When a client device wants to access a webpage, a copy of
the webpage is downloaded from the server onto the client
machine to be displayed in the user's web browser.

 The New Client: The Mobile Platform:
 The primary means of accessing the Internet is now
through highly portable smartphones and tablet computers,
and not traditional desktop or laptop PCs.
 The primary platform for e-commerce products and
services is also changing to a mobile platform.
 Few smartphones use Intel chips, which power 90% of the
world’s PCs.

 Cloud Computing:
 A model of computing in which computer processing,
storage, software, and other services are provided as a
shared pool of virtualized resources over the Internet.
 These “clouds” of computing resources can be
accessed on an as-needed basis from any connected
device and location.

 Cloud Computing – Characteristics:
 On-demand self-service - server time or network
storage as needed automatically on their own
 Ubiquitous network access - Cloud resources can
be accessed using standard network and Internet
devices, including mobile platforms.

 Cloud Computing – Characteristics:
 Location-independent resource pooling - Computing resources are
pooled to serve multiple users, with different virtual resources
dynamically assigned according to user demand.
 Rapid elasticity - Computing resources can be rapidly provisioned,
increased, or decreased to meet changing user demand.
 Measured service - Charges for cloud resources are based on the
amount of resources actually used.

 Cloud Computing – Services:
 Infrastructure as a service (IaaS)
 Software as a service (SaaS)
 Platform as a service (PaaS)

 Cloud Computing – Services – IaaS:
 Customers use processing, storage, networking, and other
computing resources.
 Example: Amazon Web Services.
 Storage: Simple Storage Service (S3)
 Database: SimpleDB
 Analytics: Kinesis
 Messaging: Simple Email Service, Simple Notification Service

 Cloud Computing – Services – SaaS:
 Customers use software hosted by the vendor on
the vendor’s cloud infrastructure and delivered as a
service over a network.
 Example: Google Apps.

 Cloud Computing – Services – PaaS:
 Customers use infrastructure and programming
tools supported by the CSP to develop their own
applications.
 Example: Windows Azure

 Cloud Computing – Public Cloud:
 It is owned and maintained by CSPs and made available to
multiple customers, who pay only for the resources they
use.
 Organizations purchase their computing services from
remote providers and pay only for the amount of computing
power they actually use.
 Example: Google, Amazon and Microsoft

 Cloud Computing – Private Cloud:
 Private cloud solutions are dedicated to one organization or business,
and often have much more specific security controls than a public
cloud.
 It might be managed by the organization or a third party and hosted
either internally or externally.
 Like public clouds, private clouds can allocate storage, computing
power, or other resources seamlessly to provide computing resources
on an as-needed basis.

 Cloud Computing – Hybrid Cloud:
 A blend of public and private clouds.
 An example of a hybrid cloud solution is an
organization that wants to keep confidential
information secured on their private cloud, but make
more general, customer-facing content on a public
cloud.

Internet Protocols and Utility
Programs
 It provides services to users in the form of
Internet applications that run on Internet clients
and servers.
 These Internet services are based on universally
accepted protocols—or standards— that are
available to everyone who uses the Internet.

Programs
 HyperText Transfer Protocol (HTTP):
 The Internet protocol used to transfer web pages.
 HTTP runs in the Application Layer of the TCP/IP model.
 An HTTP session begins when a client’s browser requests
a resource, such as a web page, from a remote Internet
server.
 When the server responds by sending the page requested,
the HTTP session for that object ends.

Programs
 HyperText Transfer Protocol (HTTP):
 Web pages may have many objects on them—
graphics, sound or video files, frames, and so
forth—each object must be requested by a separate
HTTP message.

Programs
 Simple Mail Transfer Protocol (SMTP):
 E-mail is one of the oldest, most important, and
frequently used Internet services.
 The Internet protocol used to send e-mail to a server.
 SMTP is a relatively simple, text-based protocol that
was developed in the early 1980s.

Programs
 Simple Mail Transfer Protocol (SMTP):
 SMTP handles only the sending of e-mail.
 To retrieve e-mail from a server, the client computer
uses either Post Office Protocol 3 (POP3) or Internet
Message Access Protocol (IMAP).
 IMAP allows users to search, organize, and filter their
mail prior to downloading it from the server.

Programs
 File Transfer Protocol (FTP):
 FTP runs in TCP/IP’s Application Layer and
permits users to transfer files from a server to their
client computer, and vice versa.
 FTP is the fastest and most convenient way to
transfer files larger than 1 megabyte.

Programs
 Telnet:
 A network protocol that also runs in TCP/IP’s
Application Layer.
 To allow remote login on another computer.
 Telnet provides the client part of the protocol and
enables the client to emulate a mainframe computer
terminal.

Programs
 Secure Sockets Layer (SSL)/Transport Layer Security
(TLS):
 They operate between the Transport and Application
Layers of TCP/IP and secure communications between the
client and the server.
 SSL/TLS helps secure e-commerce communications and
payments through a variety of techniques, such as message
encryption and digital signatures.

Programs
 Packet InterNet Groper (Ping):
 A utility program that allows you to check the
connection between a client computer and a TCP/IP
network.
 Ping will also tell you the time it takes for the server
to respond, giving you some idea about the speed of
the server and the Internet at that moment.

IT_8005_Electronic Commerce_Unit_I

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