ACCOUNTING INFORMATION SYSTEM & E-COMMERCE

LECTURE 6 THE INTERNET AND THE WEBCHAPTER 3: E-COMMERCE INFRASTRUCTUREByHabib Ullah QamarMSCS,MBA(HRM)

LEARNING OBJECTIVE Discuss the origins of the Internet. Identify the key technology concepts behind the

Internet. Discuss the impact of the mobile platform and cloud

computing. Describe the role of Internet protocols and utility

programs. Explain the current structure of the Internet. Understand the limitations of today’s Internet. Describe the potential capabilities of the Internet of

the future. Understand how the Web works. Describe how Internet and Web features and services

support e-commerce. Understand the impact of m-commerce applications.

INTERNET : THE BACKGROUND What is the Internet? Where did it come from,

and how did it support the growth of the Web? What are the Internet’s most important operating principles? How much do you really need to know about the technology of the Internet?

Let’s take the last question first. There are two options..based on your

career path! If marketing and business then this

discussion in next few lectures is enough If Technical career like a web designer then

this will be a foundation.

INTERNET : THE BACKGROUND An interconnected network of thousands of networks

and millions of computers linking businesses, educational institutions, government agencies, and individuals.

The Internet provides approximately 2.56 billion people around the world (including about 243 million people in the United States) with services such as e-mail, apps, newsgroups, shopping, research, instant messaging, music, videos, and news.

Who is owner? No single organization controls the Internet or how it functions, nor is it owned by anybody, yet it has provided the infrastructure for a transformation in commerce, scientific research, and culture.

The word internet is derived from Internetwork.

THE EVOLUTION OF THE INTERNET: 1961—THE PRESENT

THE INTERNET: KEY TECHNOLOGY CONCEPTS packet switching : a method of slicing digital

messages into packets, sending the packets along different communication paths as they become available, and then reassembling the packets once they arrive at their destination.

Packets :the discrete units into which digital messages are sliced for transmission over the Internet.

router: special-purpose computer that interconnects the computer networks that make up the Internet and routes packets to their ultimate destination as they travel the Internet

routing algorithm: computer program that ensures that packets take the best available path toward their destination

THE INTERNET: KEY TECHNOLOGY CONCEPTS Protocol : a set of rules and standards for

data transfer transmission control Protocol/internet

Protocol (TCP/IP) : the core communications protocol for the Internet.

TCP : protocol that establishes the connections among sending and receiving Web computers and handles the assembly of packets at the point of transmission, and their reassembly at the receiving end.

IP : protocol that provides the Internet’s addressing scheme and is responsible for the actual delivery of the packets

ROUTING INTERNET MESSAGES: TCP/IP AND PACKET SWITCHING

THE INTERNET: KEY TECHNOLOGY CONCEPTS domain name : IP address expressed in

natural language domain name system (DNS) system for

expressing numeric IP addresses in natural language

uniform resource Locator (URL)the address used by a Web browser to identify the location of content on the Web

THE INTERNET: KEY TECHNOLOGY CONCEPTS client/server computing :a model of

computing in which powerful personal computers are connected in a network together with one or more servers

Client : a powerful personal computer that is part of a network

Server : networked computer dedicated to common functions that the client computers on the network need

TODAY INTERNET

THE INTERNET BACKBONE

Bandwidth measures how much data can be transferred over a communications medium within a fixed period of time and is usually expressed in bits per second (bps), kilobits (thousands of bits) per second (Kbps), megabits (millions of bits) per second (Mbps), or gigabits (billions of bits) per second (Gbps).

INTERNET CONNECTION TYPES The firms that provide the lowest level of

service by leasing Internet access to home owners, small businesses, and some large institutions are called Internet Service Providers (ISPs). ISPs are retail providers.

THE FUTURE INTERNET INFRASTRUCTURE Future will be more fast, secure and reliable (internet2) Limitation of internet

Bandwidth limitations. There is insufficient capacity throughout the backbone, the metropolitan switching centers, and most importantly, the “last mile” to the house and small businesses. The result is slow peak-hour service (congestion) and a limited ability to handle high volumes of video and voice traffic.

Quality of service limitations. Today’s information packets take a twisty route to get to their final destinations. This creates the phenomenon of latency—delays in messages caused by the uneven flow of information packets through the network.

Network architecture limitations. Today, a thousand requests for a single music track from a central server will result in a thousand efforts by the server to download the music to each requesting client. This slows down network performance.

Wired Internet. The Internet is still largely based on cables—fiber-optic and coaxial copper cables. Copper cables use a centuries-old technology, and fiber-optic cable is expensive to place underground.

THE WEB Without the Web, there would be no………….. e-commerce. The invention of the Web brought an extraordinary expansion of digital services to millions of amateur

computer users, including color text and pages, formatted text, pictures, animations, video, and sound. In short, the Web makes nearly all the rich elements of human expression needed to establish a commercial marketplace available to nontechnical computer users worldwide.

Web was not invented until 1989,1991 by Dr. Tim Berners-Lee of the European Particle Physics Laboratory, better known as CERN (Berners-Lee et al., 1994).

Several earlier authors—such as Vannevar Bush (in 1945) and Ted Nelson (in the 1960s)—had suggested the possibility of organizing knowledge as a set of interconnected pages that users could freely browse (Bush, 1945; Ziff Davis Publishing, 1998).

Berners-Lee and his associates at CERN built on these ideas and developed the initial versions of HTML, HTTP, a Web server, and a browser, the four essential components of the Web

THE WEB Hypertext is a way of formatting pages with embedded

links that connect documents to one another and that also link pages to other objects such as sound, video, or animation files. When you click on a graphic and a video clip plays, you have clicked on a hyperlink.

Web server software refers to the software that enables a computer to deliver Web pages written in HTML to client computers on a network that request this service by sending an HTTP request.

A Web client, on the other hand, is any computing device attached to the Inter-net that is capable of making HTTP requests and displaying HTML pages. The most common client is a Windows or Macintosh computer, with various flavors of Unix/Linux computers a distant third. However, the fastest growing category of Web clients are not computers at all, but smart-phones, tablets, and netebooks outfitted with wireless Web access software.

MOBILE APPS: THE NEXT BIG THING IS HERE The use of mobile Internet access devices such as

smartphones, iPads and other tablet computers, and laptops in e-commerce has truly exploded.

From nearly zero mobile commerce prior to 2007, today, mobile commerce revenue in the United States is expected to be over $38 billion, representing around 15% of all retail e-commerce sales in 2013.

According to market research firm eMarketer, over 60% of all online shoppers are mobile shoppers as well, and this number is expected to increase to over 80% by 2016.

In addition, eMarketer also believes that 72 million people in the United States will make a purchase through a mobile device in 2013, and this number will increase by almost 65% to 120 million in 2016 (eMarketer, Inc., 2013j).

While mobile commerce is more widespread among younger consumers.

MOBILE APPS: THE NEXT BIG THING IS HERE Tablets are being added into the mix. More

than 50% of tablet owners have reported using their tablets at least once a week to shop, particularly on nights and weekends, and often from the comfort of couch or bed. More than 40% have made a purchase using their tablet (eMarketer, Inc., 2012). As a result, companies are rapidly increasing their investment in mobile commerce technologies.

Mobile capabilities include making sure Web sites are compatible with mobile browsers, are optimized for use on various devices and provide downloadable mobile apps.

RESOURCES E-Commerce by Kenneth C. Loudon, Carol

Traver : 2014 version : Chapter 3 www.Wikipedia.org http://theITeducation.com/ http://slideshare.net/habibullahqamar/

THANK YOU