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Chapter [4] Internet And Other Technologies Created By Manish Mathur.

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1 Chapter [4] Internet And Other Technologies Created By Manish Mathur

2 History and Background Developed by Dept. Of Defense, USA in Advanced Research Project Agency dev. it and initially named it ARPANET. Objectives ~ – Network should continue to function even if any resource fail. – It should support different hardware and software. – Network should automatically route the traffic. – It should be network of networks. – It should be information based network. Created By Manish Mathur

3 More then 100 million people connected to it and 10% per month. The 2 ways to get connected are – – Dial-up Phone lines – Leased Lines The connection is provided by ISP. It offers 1-1, 1-M, M-1 mode of communication. It is multimedia based network. Created By Manish Mathur

4 W.W.W. Large collection of internet servers that provides storage facility on cost, on demand. The space of storage is called web site, the information stored is called web document and the smallest unit is called web page. Compo nents HTMLHTTPURIs H/W and S/W Created By Manish Mathur

5 HTML ~ Hyper Text Markup Language is a programming language for developing web document. It helps to specify the presentation of contents on the web page and link to other pages. HTTP ~ Hyper Text Transfer Protocol is a communication standard used by all the computer in WWW. It is a multimedia based protocol. URIs ~ Uniform Resource Identifier is a string of characters to identify a web resource. It is of two types ~ URN : Uniform Resource Name URL : Uniform Resource Locator Created By Manish Mathur

6 Web Hardware and Software ~ Server ~ The computer on which web pages resides are called web servers. They run special server software to allow users to access web pages. WWW is a web of thousands of servers. Client ~ The computer which access web pages are called client of the server. They run special client software such as Internet Explorer. TypeInternetWWW NatureHardwareSoftware Comprises ofComputer, communication Devices, Channels Web sites and Web pages Governed byTCP/IPHTTP DependencyIndependent of WWWDependent on Internet Internet v/s WWW Created By Manish Mathur

7 1 Communication Online Offline 1 to 1 1 to M M to M 2 Data Retrieval Data basesWeb sites 3 Publishing AdvertisingE-Commerce Created By Manish Mathur

8 Uses of Internet Off-line communication Advertising & promotion Electronic Trading Shareware Entertainment On-line communication Enquiry handling Database Access Employment Education Created By Manish Mathur

9 Intrinsic Benefits Information can be placed at a common place. Access to reasonable cost. Mechanism of immediate feedback from customers. Delivery of reasonable cost. Increased employees access to information. Efficient means of information updation. Created By Manish Mathur

10 Type of Connections Analog/Digital connection ~ –It uses ordinary phone line with Modem to dial a phone no. given by ISP to connect to Internet server. Speed is 56 kbps. ISDN connection ~ –It uses digital phone line that allow Integrated Service Digital Network for sending, voice, video & data. Speed is 128 kbps. B-ISDN connection ~ –It is broadband ISDN and transfer data over fiber optic telephone line. Created By Manish Mathur

11 DSL connection ~ –Digital Subscriber Line. It does not require to dial a phone number as it always on. ADSL connection ~ –Asymmetric Digital Subscriber Line. It require special ADSL Modem. Speed : Sending – 640 kbps and Receiving – 9 mbps. SDSL connection ~ –Symmetric Subscriber Line. It employee ordinary phone line and special Modem to send or receive data at the speed of 3Mbps. Created By Manish Mathur

12 VDSL connection ~ –Very high Digital Subscriber Line. It offers fast data rate over relatively short distance. Speed – 8 mbps. Cable connection ~ –It used cable modem to provide Broadband Internet connection over cable TV line. Speed – 20 mbps. Wireless connection ~ –It uses special wireless modem to transfer data using Radio frequency bands. It is an always on connection. T-1 line connection ~ –It is a leased line connection consisting of 24 individual channels of speed 63 kbps. We can take one-some-all of these channel. Created By Manish Mathur

13 Bonded T-1 connection ~ –It is 2 or more T1 lines that have been bonded together. They provide 46 channels with speed of 3 mbps. T-3 line connection ~ –It consists of 672 channels supporting data rate of 45 mbps. It is used by ISPs to connect to Internet Backbone. Satellite connection ~ –It allows user to access the Internet via satellite in the space. Because of the long distance it is slower in speed (512 kbps). Created By Manish Mathur

14 It is called TCP/IP. It is standard of communication on the NET. It consists of 4 layers ~ Internet Protocol Suite DNS, FTP, HTTP, SMTP Application TCP, UDP Transport IP, ARP Network PPP, FDDI Link Created By Manish Mathur

15 HTTP Hyper Text Transfer Protocol is standard of communication between web server and web browser. Using HTTP browser sends request to server and server sends the requested data to browser. SMTP Simple Mail Transfer Protocol is a standard of communication between sender and receiver. IT consists of three command sequence – MAIL : to define senders address RCPT : to define receivers address. It can be multiple receiver. DATA : to define the text message. IT consist of message header and message body. Advantages Easy to manage and filter Fast and Inexpensive Secure and reliable Created By Manish Mathur

16 FTP File Transfer Protocol is standard commonly used to upload web pages to a web site. NNTP Network News Transfer Protocol is a standard of communication for newsgroup. It consists of two components : List of newsgroups and database of messages. CGI Common Gateway Interface is a standard used by many web server to receive CGI request from browser, executes a script to process the request and finally return the result to browser. TCP Transmission Control Protocol. It provide services : stream data transfer, efficient data flow control, duplex operation, multiplexing. Created By Manish Mathur

17 IP Internet Protocol is a standard for packet routing, error checking and maintaining data integrity. VOIP Voice Over Internet Protocol support delivery of voice signals over internet using technique such as – IP telephone, Internet telephony, Broad Band phone etc. ARP Address Resolution Protocol is a standard to identify MAC address of a corresponding IP address. For two computers to communicate in a network, they must know each others machines physical address(MAC). ICMP Internet Control Message Protocol is a standard to provide communication error and other information back to source. Created By Manish Mathur

18 UDP User Datagram Protocol is standard that provide connection less method of communication between machine. It is simple, unreliable and packets may be lost. Telnet This protocol allow us to connect to remote computer using special telnet client software. Once the connection is established our client becomes a virtual terminal of the remote host. Created By Manish Mathur

19 Intranet Privately owned network of the organization developed using public server (Internet server) Connects people with internet technology. Benefits ~ –Easy accessibility of information –Sharing of information –Reduced information updation time –Reduced corporate licensing –Reduced documentation cost –Faster and cheaper creation Created By Manish Mathur

20 Some more key benefits of INTERNET are ~ Workforce Productivity Time Communication Web Publishing Business operation and management Cost-effective Promote common corporate culture Enhance Collaboration Cross-platform capability Created By Manish Mathur

21 Factors to be considered in Planning are ~ Purpose and goals Team building Implementation schedule Information Security Legal issues Level of interactivity Data entry/updation centralized or not Selection of hardware and software Features to be supported Created By Manish Mathur

22 Application ~ –Telephone directories –Future sales projections –New product development note –Inter-office communication –New job opening –Profile of employees –Companys hierarchical structure –In-house training of employee –Company calendar –Electronic chat space –Personal Home page –Groupware Created By Manish Mathur

23 Extranet Extension of an intranet that makes company network accessible to the out side world. It provides privacy and security of intranet and retain global reach of internet It connects intranets of business partners, suppliers, banks etc. It allows authorized outsiders to communication with the company. Created By Manish Mathur

24 Extranet requires an extra bit of security and privacy controls. This includes – Authorization procedure Firewall server management Digital Certification Encryption VPN tunnel Created By Manish Mathur

25 Extranet Applications Exchange of documents Share product catalogs Collaborate with other companies Provide access of services of one company to other companies Share news of common interest. Created By Manish Mathur

26 Extranet Rules Be as flexible as business It must be flexible enough to provide customized services. Deploy additional infrastructure Company should not always create new infrastructure. Protect the interest of data owner The correct user can access the right services. Serve the partner as customer Must provide services without needing partners to change their system, network, security, firewall etc. Drive information to decision maker It must provide progress reports to decision maker to measure performance and popularity. Created By Manish Mathur

27 E-Commerce According to E-Com forum – –E-com is an application of communication technology to provide automated exchange of business information with customer, supplier and financial institution. E-com is a combination of following technologies – –EFT, EBT, EDI, EB, , BBS, WWW, Intranet, Digital cash. Created By Manish Mathur

28 Placement of Order Payment Authorization request Authorization response Order fulfillment Settlement Request Settlement deposited Working of E-Com Created By Manish Mathur

29 Benefits of E-com Reduced cost to buyer Reduced time in delivery Reduced inventory Reduction in manufacturing cost Equal access to market Improved market intelligence Reduced cost to seller Reduced cost of delivery Reduction in advertising cost Easy entry to remote market Better quality of goods Created By Manish Mathur

30 Internets Role in E-com Universality Performance Reach Reliability Cost Momentum Created By Manish Mathur

31 E-com B2BB2C Direct SellerOn-line Intermediary Broker Buy/sell fulfillment Virtual Mall Metamediary Bounty Search Agent Shopping facilitator Infomediary Advertising based model Community based model Fee based model C2BC2C Created By Manish Mathur

32 Customer Relationship Management (CRM) A set of methodology and technology that helps organization to maintain healthy relationship with its customer. Many successful CRM software available to support CRM strategy but changes in business policies, procedures, culture, training MIS etc is essential. Characteristics of a good CRM program – – Ability to identify customer success factor – Create customer based culture – Ability to adopt customer based measures – Recommend what questions to ask to help customer – Recommend what to tell customer with a complaint Created By Manish Mathur

33 Inbound Lead Sending literature to Suspect Move to Prospect Quote prospect Prospect move to customer Service customer Move to repeat customer CRM 360 o Customer View Created By Manish Mathur

34 Architecture of CRM CRM Operational CRM SFA CSS EMA Analytical CRM Prediction of Customer attribute Customer Segmentation Financial Forecasting Risk assessment Product Development Collaborative CRM Created By Manish Mathur

35 Technical Functionality Scalability Multiple Communication channels WorkflowAssignmentDatabase Customer Privacy Created By Manish Mathur

36 Improving Customer Relationship CRM can track customer interest, need, buying habits and tailor company efforts accordingly. CRM can track customer product use and tailor the service accordingly. CRM can deliver many services to the customer on-line to increase their satisfaction. CRM ensures repeat purchase by customers. CRM enable sales people to achieve one-to-one approach of selling and can automate some elements. Created By Manish Mathur

37 Supply Chain Management (SCM) According to the council of SCM professionals, SCM is a ~ Planning and management of activities involved in Sourcing, Procurement and Logistics. Coordination and collaboration with channel partners. Created By Manish Mathur

38 Fulfillment Logistics Production Revenue & Profit Costs Cooperation Benefits Of SCM Created By Manish Mathur

39 SCM Issues SCM addresses the following problems~ 1.Distribution Network Configuration : Determining Number and Location of channel partners. 2.Distribution Strategy : Selecting Centralized v/s De- centralized, Pull v/s Push strategy, Third party logistics etc. 3.Information gathering : Integrating IS of channel partners to share valuable information i.e. Demand signals, Forecasting, Transportation etc. 4.Inventory Management : Selecting Quantity and Location of raw data, WIP and finished goods. Created By Manish Mathur

40 Functions of SCM Functions of SCM can be grouped into 3 levels Strategic SCM :~ Optimizing SCM network : Number, Location, Size Development of strategic partnership Establishing product design coordination Developing IT infrastructure Decision Making Where and What? Make and Buy? Created By Manish Mathur

41 Tactical SCM :~ Sourcing contract decision Production decision : Location, schedule Inventory decision : Quantity, Quality, Location Transportation decision : Contract, frequency, route Bench marking Payment Decision Operational SCM :~ Daily production & distribution planning Demand planning and forecasting Procurement of material Inbound transportation Outbound transportation Order processing, Accounting and Reporting Created By Manish Mathur

42 Bullwhip effect Customer demands are rarely stable so company often carry an inventory buffer called buffer stock. Greater the variation in demand greater will be the level of safety stock. This is called Bullwhip or Whiplash effect. 50 retailer3 – 7 days50*5=250 days 10 dealer7 – 15 days10*10=100 days 5 Godown15 – 30 days5*20=100 days Total=450 days Reasons : Forecast errorLead time variability Batch orderingPrice fluctuations Solutions :Vendor managed inventory Just – in – time replenishment Strategic Partnership Created By Manish Mathur

43 Electronic Fund Transfer EFT ATM POS terminals Pre authorised Tran. Telephone transfer Created By Manish Mathur

44 Electronic Payment Credit Card Authorization BatchingClearingFunding Created By Manish Mathur

45 Card Holder Merchant Acquirer Issuing Bank Purchase request Product Authorization request Authorization request Authorization code Step 1 : Authorization Created By Manish Mathur

46 Step 2 : Batching The merchant transmits the batch of sales transactions of the day to acquirer to receive the payment. Step 3 : Clearing The acquirer sends each sales transaction to the appropriate issuing bank. The bank subtracts the interchange fee and transfer remaining amount to the acquirer. Step 4 : Funding The acquirer subtract its discount fee and transfer the remainder to the merchants account. Created By Manish Mathur

47 SET Secure Electronic Transaction is a payment standard developed jointly by Master card and VISA card. It is used to handle C.C. transactions securely. Objectives ~ Provide confidentiality of payment information transmitted over network. Ensure Integrity of all transmitted data. Provide system to authenticate the card user. Provides protocol that is independent of other security mechanism. Facilitate interoperability between various servers. Created By Manish Mathur

48 Data Security in SET ~ SET uses Cryptography to protect the data during transmission. There are two such methods ~ Symmetric Cryptography Also called Secret key cryptography, it uses a single key for coding and decoding. Asymmetric Cryptography Also called Public key cryptography, it uses a key pair for coding and decoding. The key used for coding is called Private key (by sender) and for decoding Public key (by receiver). These keys are issued by Certifying Authority(CA). The CA creates a digital document containing private and public key of the user and his own private key(Root key). This document is called Digital Signature Certificate. Created By Manish Mathur

49 Electronic Cheque There 2 systems developed to use e-cheques – (i)FSTC Here buyer authenticate the cheque by digital signature and send it electronically to the issuing bank. The E-cheque is then handled by EPH software installed at the bank server. The user can designate e-cheque as Certified Cheque or Electronic Charge Card Slip(Standard e-cheque). The National Automated Clearing House Association clears e- cheque and transfer the fund. (ii) Cyber cash Here buyer, after authentication, send the e-cheque to the seller. The seller then put it to the bank and get transfer of fund into his account. Created By Manish Mathur

50 Smart Card The plastic card that has an embedded microprocessor chip that stores and manipulates the data. Contact CardContact less CardCombo Card Pre-paid Card pass through the POS terminal, no credit check or signature required. Electronic Purse Created By Manish Mathur

51 Risk and Security The popularity of E-commerce depends on the development of the methods to ensure safety from the inherent risk associated with such kind of business. The dimensions of E-com security includes – Integrity : Non-Repudiation : Authenticity : Confidentiality : Privacy : Availability : Created By Manish Mathur

52 Security considerations from buyers point of view – Reliability : Scalability : User friendliness : Secure payment method : Sellers concern – Loss of paper audit trail Business continuity is dependent on single machine Exposure of data to third party Exposing information of trading partners Record retention and retrieval Segregation of duties not possible Created By Manish Mathur

53 Protection tools – – Fire wall – Encryption Hardware encryption Software encryption – Message Authentication – Site blocking Web site with objectionable material should be blocked to prevent employees access. Web site that allow fraud transaction to pass through should be blocked for communication. Created By Manish Mathur

54 Legal Issues Jurisdictional problem Taxation problem No legal formalities required to setup a web-shop Possibilities of fraud transaction No audit trail Created By Manish Mathur

55 Mobile commerce Business trading through mobile devices such cell-phones, PDAs etc. The technology behind m-commerce is WAP. The affected industries are – – Financial services – Telecommunication – Retail services – Information services Created By Manish Mathur

56 Blue Tooth Named in the honor of the king of Denmark Harold Bluetooth. Communication system using short range wireless connection. Frequency : 2.45 Ghz, Speed : 1 Mbps Range : 10 meters Created By Manish Mathur

57 Wi - Fi (WLAN) It is a wireless local area network used as a gateway to internet. The region covered by the wireless access point is called hotspot, that ranges from a room to several miles. Connectivity is peer-to-peer. Technology can be used by only wi-fi enabled devices. Coffee shops, airport lounges, college campus etc. Created By Manish Mathur

58 All The Best Manish Mathur Softech Informatic Systems 1 st floor, Anand Nagar, Ajmer (Raj.) Created By Manish Mathur

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