Chapter 2

e-Commerce Infrastructure Technologies

1. Internet: Network Technologies
2. WWW (World Wide Web): Content Technologies
3. Mobile Ecosystem
 The Hourglass Model of the Internet
n Because all the layers use
the common standards (e.g.,
TCP/IP) linking all four
layers, changes in the
Network layer do not
disrupt nor enforce changes
in the Applications layer
n Major Trends (2018-19):
Table 2.1 (p.95)

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Trends in e-Commerce Infrastructure 2018-19

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 I. The Internet: Key Technology Concepts
n The Federal Networking Council (FNC) agrees that the following language
reflects our definition of the term ‘Internet.’ Internet refers to the global
information system that-
(i) Is logically linked together by a globally unique address space based on the
Internet Protocol (IP) or its subsequent extensions/follow-ons;
(ii) Is able to support communications using the Transmission Control
Protocol/Internet Protocol (TCP/IP) suite or its subsequent extensions/follow-ons,
and/or other IP-compatible protocols; and
(iii) Provides, uses or makes accessible, either publically or privately, high level
services layered on the communications and related infrastructure described
herein
Last modified on October 30, 1995.
n Internet defined as network that:
v Network of Networks
v IP address
v TCP/IP (Transmission Control Protocol/Internet Protocol)
v Client/Server computing architecture

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 Internet Network Architecture
• High-bandwidth fiber-optic cable networks
• Private networks owned by a variety of • IXP (Internet Exchange Point)
NSPs (National Service Provider) • Hubs where backbones intersect
• Bandwidth: 155 Mbps–2.5 Gbps with regional and local networks,
• Built-in redundancy (multiple duplicate and backbone owners connect with
devices and paths in a network) one another
• Used to be called as NAPs
(Network Access Points) or MAEs
(Metropolitan Area Exchanges)

• CAN (Campus
Area Network)
• LANs operating
within a single
organization that
leases Internet
access directly
from regional or
national carrier

• Intranet
‒ TCP/IP network located within a single organization for communications & processing Figure 2.12, Page 117
‒ All Internet applications can be used in private intranets

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Reference

Major Backbones Owners & IXPs

Backbones: IXPs:

- AT&T
- Cogent
- Level 3 Communications
- Sprint
- Tata Communications
- Verio (NTT
Communications)
- Verizon
- Vodafone

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 Internet Service Providers (ISPs)
n Provide lowest level of service to
individuals, small businesses, some
institutions
n Types of service
v Narrowband (dial-up)
v Broadband
n Digital Subscriber Line (DSL)
n Cable Internet
n T1 and T3
n Satellite Internet

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Reference

U.S. ISP Service Levels and Bandwidth

(Digital Subscriber Line)

(Fiber-Optic Service)

a 10-MB File

Back to Index Slide 2-8

 Internet Addresses
n IPv4
v 32-bit number
v Four sets of numbers marked off by periods: 201.61.186.227
n Class C address: Network identified by first three sets, computer identified by last set
v IPv6
n 128-bit addresses, able to handle up to 1 quadrillion addresses (IPv4 can handle only 4
billion)
n Domain name
v IP address expressed in natural language
v Domain name system (DNS)
n Allows numeric IP addresses to be expressed in natural language
v Uniform resource locator (URL)
n Address used by Web browser to identify location of content on the Web
n Uses the protocol and domain name
n For example: http://www.azimuth-interactive.com/flash_test

Back to Index Slide 2-9

 TCP/IP and Packet Switching

Header information added to each packet indicating

destination, and other control information, such as how many
bits are in the total message and how many packets.

(TCP) (IP)
(TCP)

• Routers: Special purpose computers that interconnect the computer networks in the Internet & route packets
• Routing algorithms ensure packets take the best available path toward their destination

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Reference

The TCP/IP Architecture and Protocol Suite

(Figure 2.4)

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 Client/Server Computing
n Powerful personal computers (clients) connected in
network with one or more servers
n Extensible
v By simply adding servers and clients, the population of
Internet users can grow indefinitely.
n Servers perform common functions for the clients
v Storing files
v Software applications
v Access to printers, and so on
n System architecture
v Arrangement of software, machinery, and tasks in an information
system needed to achieve a specific functionality
v Two-tier vs. Multi-tier architecture

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 Cloud Computing
n Firms & individuals obtain computing power & SW over Internet
v Technical Foundation: Virtualization by Hypervisor
v Service Types: IaaS, PaaS, SaaS
v Delivery Types: Public, private, and hybrid clouds
n Benefits:
v Cost reduction in IS development and operations
v Immediate scalability
v Fast IS implementation
n Risks: Organizations become dependent on outside providers
n Amazon Web Services (AWS): Table 2.4 (pp.109-110)
v Computing, Storage, DB, Networking & Content delivery, Analytics,
Applications, Messaging, Deployment & Management, Mobile, Payment,
Miscellaneous

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 CDN & Edge Caching
n Content Delivery Network (CDN): Specialized network like
RealNetworks
n Edge caching: Serving data by the closest-located server
computer patented by Akamai
v Edge computing pushes applications, data and computing power
(services) away from centralized points to the logical extremes of a
network. Edge computing replicates fragments of information across
distributed networks of web servers.
v As a topological paradigm, edge computing is also referred to as mesh
computing, peer-to-peer computing, autonomic (self-healing)
computing, grid computing, and other names implying non-
centralized, nodeless availability.
v Edge caching = Cache server = Proxy server
n Both together provide the static data (e.g., HTML text) by local
server and the dynamic data (e.g., video) by the DB server in HQ
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Two-Tier vs. Multi-tier e-Commerce Architecture

(DB server)

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 Content Management Systems (CMS)
n Separates building the template for content presentation (i.e.,
technical) from the content creation (i.e., non-technical) so that it
supports management and delivery of documents without big
technical proficiency or expertise (e.g., In reports, web pages, and
other expressions of employee knowledge)
n CMS is essentially a database that stores content, with front-end
word processing, and back-end page composition templates (what
the reader actually sees on the web or print page)
n CMS can run on local or cloud servers so multiple people in any
location can work on the same documents in collaborative fashion.
n Example: Wordpress, Drupal, Joomla

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 Web Server Software
Functions Description
Processing of HTTP requests Receive & respond to client requests for HTML pages
Security services (Secure Verify username & password, Process certificates & private/public key
Sockets Layer/Transport information required for credit card processing & other secure information
Layer Security)
File Transfer Protocol Permits transfer of very large files from server to server
Search engine Indexing of site contents, Keyword search capability
Data capture Log file of all visits, time, duration & referral source
E-mail Ability to send, receive, & store e0mail messages
Site management tools Calculate & display key site statistics, such as unique visitors, page
requests, & origin of requests; Check links on pages
n Apache
v Leading Web server software (51% of market)
v Works with UNIX, Linux operating systems
n Microsoft’s Internet Information Server (IIS)
v Second major Web server software (12% of market)
v Windows-based
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Reference

Web Application Servers

n Provide specific business functionality required for a Web site
and can work as middleware
v Isolate business applications from Web servers and DB (For details
Table 3.5, p.196): Catalog display, Shopping cart, List (Mailing list)
server, Proxy server, Audio/Video server, Chat server, News server, Fax
server, Groupware server, Database server, Ad server, Auction server,
B2B server, etc.
v Proxy server: Located between client computers and Internet. Can work
as Gateway (for Network separation), Firewall, and/or Cache server
(for quick access to the frequently revisited contents)
n Single-function applications being replaced by integrated
software tools that combine all functionality needed for e-
commerce site

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Reference

Merchant Server Software Packages

§ Integrated environment for e-Commerce merchants
– Online catalog
– Shopping cart
– Credit card processing
– Merchandise display
– Order management
n Different options for different-sized businesses
v Small & medium-sized businesses: Yahoo Small Business; Open-source solutions*
v Mid-range: IBM WebSphere Commerce Express; Sitecore Experience Commerce
v High-end: IBM WebSphere Professional/Enterprise; SAP Hybris, Oracle ATG Web
Commerce, etc.
v Many now also available as cloud-based SaaS solutions.
n Key factors in selecting a package
– Functionality, Support for different business models (including m-commerce),
Business process modeling tools, Visual site management and reporting,
Performance and scalability, Connectivity to existing business systems,
Compliance with standards, Global and multicultural capability, Local sales tax and
shipping rules

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Reference 20

Open Source Software

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Reference

Other e-Commerce Site Tools

Category Description Tools

Site Management • Verify that links on pages are still valid (avoid the dead-links) Webtrends Analytics 10, Google
Tools (SMT) • Identify orphan files (i.e., files not linked to any pages) Analytics
• Monitor customer purchases, marketing campaign effectiveness, etc.
Dynamic page • Dynamic page generation: CGI (Common Gateway Interface),
generation tools Ø Contents stored in database and fetched when needed ASP (Active Server Pages), JSP
↔ Static HTML • Advantages (Java Server Pages), ODBC (Open
Ø Lowers menu costs (incurred to change product descriptions & price) Database Connectivity), JDBC (Java
Ø Permits easy online market segmentation by uploading different Database Connectivity)
These tools are independent of
contents on the frame to different customers & occasions ⇒ Cost-
platforms
free price discrimination (i.e., selling the same product to different
Open source tools: PHP, Ruby on
customers at different prices) Rails, Django
Ø Enables content management system (CMS)
Tools for Supports communication between the browser & the program on a server CGI (Common Gateway Interface)
interactive ASP (Active Server Pages)/ASP.NET
contents Server-side environment for interactive web & mobile applications ColdFusion (Adobe)
Web 2.0 design elements Widgets, mashups

Personalization & Personalization: Ability to treat people based on personal qualities and Cookies
Customization prior history with site
tools Customization: Ability to change the product to better fit the needs of the
customer

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 II. WWW & Hypertext
n Text formatted with embedded links
v Links connect documents to one another, and to other
objects such as sound, video, or animation files
v Uses Hypertext Transfer Protocol (HTTP) and URLs to
locate resources on the Web
n Markup Languages
v Hypertext Markup Language (HTML)
n Fixed set of pre-defined markup “tags” used to format text
n Controls look and feel of Web pages
n HTML5 the newest version
v eXtensible Markup Language (XML)
n Designed to describe data and information
n Tags used are defined by user

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 Web Browsers
n Primary purpose is to display Web pages
Desktop Browser Global Market Share Market Share in Korea
Market Share 12.2016 02.2020 12.2016 02.2020
Google Chrome (open 62.66% 64.45% 55.25% 57.64%
source)
Mozilla Firefox (open 14.95% 4.58% 2.48% -
source)
Internet Explorer 9.86% 1.63% 35.1% 7.66%
Apple Safari 5.1% 17.57% 2.81% 11.04%
Whale Browser 3.36% - 2.46% 6.1%
UC Browser - 2.16% - -
Edge Legacy - 2.19% - 2.63%
Samsung Internet - 3.28% - 11.34%
* Source: Statcounter (http://gs.statcounter.com/browser-market-share)

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 Why IE is Popular in Korea? Active-X!
n Two separate technologies for secure e-commerce:
v Digital Certificate: On February 1999, the Digital Signature Act 전자서명법
was enacted and approved the digital certificate공인인증서.
v Encryption: Algorithms (e.g., RSA, SEED) and Web encryption (e.g., https
running on SSL, Active-X). Active-X of MS was chosen by Korean
government because U.S. government prohibited the encryption
technology beyond 64 bits and IE used the longest encryption technology
(i.e. 56 bit) then.
§ Problems of Active-X: * Source: Statcounter (http://gs.statcounter.com/browser-market-share)

v Incompatible with other

browsers
v Too many module programs must
be installed (e.g., keyboard
encryption module, etc.)
v Even MS stopped servicing
Active-X, and so did the Korean
government in 2014.

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Reference

How Google Works

Slide 2-25
 III. Ecosystem of Mobile Service:
The CPND Model
Contents Platform NW Device
Apple Store
on iOS iPhone
Contents

Network
Google Play Android
on Android User
Phone
Windows Store
on
Windows Phone
Nokia
• Device: USIM Card
• Network: 5G
• Platform: Google vs. Apple Platform
• Contents: Top 10 apps ever
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 Features of Mobile Devices

Table 7.13 (p.506)

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 How People Use Mobile Devices
n The Multi-Channel/Platforms
v 90% of mobile users use multiple devices to § 85% of smartphone time on Apps (15%
complete action: View ad on TV, search on on Browser)
smartphone, purchase on tablet v Regularly use 25 apps a month
v Consistent branding, Cross-platform design
v 75% of app time spent on user’s top 4 apps
(Responsive design)
n Increasing use of search How U.S. People Use Their Mobile Devices
v People, places, things (e.g., Restaurants, deals)
n Physical retail goods take up 85% of m-
commerce sales
The Mobile Top 10 U.S. Retailers (2014)

(% in Monthly User time,

As of 2012)

(sales)

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Wireless Internet Access (1):
Telephone Technologies

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 Wireless Internet Access (2):
Computer Network Technologies

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The Internet of Things (IOT)
n Objects connected via sensors/RFID to the Internet
v 10-20 BLN IoT devices already installed (2018)
v 100 BLN IoT devices will bring the economic benefits of US$11 trillion by 2025
n “Smart things” (TV, house, car, wearable technology, etc.)
v Smart Home: Google Nest (Nest Labs* + Google Home), Apple HomeKit, Cable
companies (Charter Spectrum, Comcast, AT&T)
v Smart Watch: Apple Watch
v Connected car: Google Android Auto, Apple CarPlay
n Interoperability issues and standards
v Open source standards: Open Connectivity Foundation (2016) = AllSeen (founded
by Qualcomm, 2013)+Open Interconnect Consortium (founded by Intel, 2014)
v Engineering standards for industrial assets: Industrial Internet Consortium
(founded by AT&T, Cisco, GE, IBM, and Intel in March 2014)
n Security and privacy concerns
v Difficulty in issuing patches to devices

* Nest Labs: Founded in 2010, Acquired by Google for US$3.2 BLN in January 2014 &
Independently operated during 2015-2018

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 Case Discussions
The Apple Watch: Bringing Leaping into the Future with
the Internet of Things to AR and VR (pp.151-152)
Your Wrist (pp.127-128) v What are some of the challenges to
v Are you or anyone you know using the widespread adoption of AR and
the Apple Watch? If not, why not? VR?
If so, what apps do you use most? v Why are major players such as
v What are the potential benefits of Facebook, Google, Apple, Amazon,
wearable technology? Are there and telecommunications
any disadvantages? companies so interested in AR and
v What effects will features like the VR applications?
Apple Pay button and Taptic Engine v Have you used any e-commerce-
have? related AR or VR applications? If
v Are there any privacy issues raised you have, did you find them to be
by wearable technology? useful? What did you like about
them? What didn’t you like?

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