Elias M. Awad Third Edition ELECTRONIC COMMERCE From Vision to Fulfillment 1-1© 2007 Prentice-Hall, Inc ELC 200 Day 6

1-2 © 2007 Prentice-Hall, Inc Agenda Questions?? Assignment 1 Corrected Assignment 2 is posted –Not due until Feb 18 Quiz 1 Results –4 A+’s, 9 A’s, 4 B’s, 1 C, 1 D and 1 MIA –Next quiz will be 10 min shorter Finish Discussion on Internet Architecture Begin Discussion on Intranets and extranets

1-3 © 2007 Prentice-Hall, Inc Packets and Protocols All data sent through the Internet are sent as packets A packet is a sequence of bits that carries identifying information for transmitting the data as well as the data itself A single packet contains a header to keep track of the actual data it carries Packets range in size from 100 bytes to 2,000 bytes Messages that are larger than the standard packet size are split into a series of packets for transmission

1-4 © 2007 Prentice-Hall, Inc Packets and Internet Protocols Protocols are pieces of software that run on every node or computer and allow every pair of computers to communicate directly without having to know much about each other, except for the IP address Protocols govern communication between peer processes on different systems Differing client browser and Web server Protocols used in connection with the Internet include many functions and the TCP/IP protocol suite

1-5 © 2007 Prentice-Hall, Inc Packet Switching The way data are exchanged between two communicating computers Divides data into packets (datagrams), which also contain control information like Internet addresses of the source and destination computers Packet switching makes it possible to enable multiple communicating computers to share the network efficiently, quickly, and accurately

1-6 © 2007 Prentice-Hall, Inc OSI Reference Model Application Layer Presentation Layer Session Layer Transport Layer Network (Internet) Layer Data Link Layer Physical Layer

1-7 © 2007 Prentice-Hall, Inc OSI Reference Model - (cont’d) A seven-layer model that defines the basic network functions Each layer handles a different portion of the communications process with specific network functions

1-8 © 2007 Prentice-Hall, Inc ISO 7-layer Model Layer 7 Application Layer 6 Presentation Layer 5 Session Layer 4 Transport Layer 3 Network Layer 2 Data Link Level 1 Physical Layer 7 Application Layer 6 Presentation Layer 5 Session Layer 4 Transport Layer 3 Network Layer 2 Data Link Level 1 Physical Node ANode B Data translation MIME, encryption, etc. User applications FTP, , browser, etc. End-to-End control Error correction (TCP) Link management MAC, physical addressing Session management Dialog management, security Manages data transfer Message routing (IP) Physical hardware Media, signal transmission Messages Packets Frames Bits on physical medium

1-9 © 2007 Prentice-Hall, Inc Application Layer Communicates with the actual application in use Standards at the application layer specify how two application programs should communicate –The main standard hypertext transfer protocol (HTTP) –Hypertext markup language (HTML) is a standard set of codes representing text or graphics The application layer is where the user begins to do something useful Simple network management protocol (SNMP) is a protocol that controls network devices at the application layer Domain naming service (DNS) is software that converts IP addresses into easy-to-remember names for the user

1-10 © 2007 Prentice-Hall, Inc Presentation and Session Layers Presentation Layer –The network’s translator –Converts data into a format for network transmission and converts incoming data into a format the receiving application can understand Session Layer –Facilitates a “session” between two parties to communicate across a network –Keeps track of the status of the exchange and ensures that only designated parties are allowed to participate –Enforces security protocols

1-11 © 2007 Prentice-Hall, Inc Transport Layer Manages the transmission or flow of data between two computers or across a network Manages the data flow is by segmenting data into multiple packets Acknowledges successful transmissions and requests retransmission if packets are damaged or arrive in error Breaks the connection when transmission ends Standard for the transport layer is the transmission control protocol (TCP)

1-12 © 2007 Prentice-Hall, Inc Network (Internet) Layer Routes messages across multiple nodes Handles network congestion Standard for routing packets is the Internet Protocol (IP) Resends lost packets automatically Defines how data are subdivided into packets

1-13 © 2007 Prentice-Hall, Inc Data Link Layer The “basement” of the Internet Messages at the data link layer are called data frames the basic unit of Internet traffic Another way of sending packets is over an Ethernet –Framing and error detection are handled automatically by Ethernet hardware –Ethernet broadcasts a message to all the computers linked to it, but only the computer with the right address broadcasts an answer

1-14 © 2007 Prentice-Hall, Inc Physical Layer Lowest layer in the journey of a message from source to destination Converts bits into signals for outgoing messages and signals into bits for incoming messages

1-15 © 2007 Prentice-Hall, Inc Other Networks TCP/IP protocols are not restricted to the Internet Companies have found TCP/IP useful for: –Creating intranets, or internal company networks –Forming extranets to connect with vendors and suppliers and establish shared databases

1-16 © 2007 Prentice-Hall, Inc Network Cable Types Network connectivity means: –Speed of data transfer –Network size –Ease of installation There are three types of cable –Twisted pair –Optical fiber –Coaxial –Wireless technology

1-17 © 2007 Prentice-Hall, Inc Twisted-Pair Cable Two pairs of insulated wires twisted around each other, even enclosed in a plastic sheath The most commonly used type of networking cable in the United States Originally used to connect a telephone to a wall jack Least expensive cable medium Shielded and unshielded twisted pair –Unshielded twisted-pair (UTP) cabling does not have shielding against electrical interference –Shielded twisted-pair (STP) cabling has an electrically grounded woven copper mesh or aluminum foil wrapped around each twisted pair and another metal mesh wrapped around a multiple bundle of wires to reduce electromagnetic interference

1-18 © 2007 Prentice-Hall, Inc UTP Cable

1-19 © 2007 Prentice-Hall, Inc Fiber-Optic Cable Uses light rather than voltage to carry data Fiber enables digitized light signals to be transmitted more than 60 miles without being amplified Outperforms copper and coaxial media with fewer transmission losses, lower interference, and higher bandwidth Drawbacks are: –It is the most expensive of all network media types –Each segment that transmits incoming and receiving data must contain an incoming cable and an outgoing cable –It requires highly skilled installers and special connectors

1-20 © 2007 Prentice-Hall, Inc Optical Fiber

1-21 © 2007 Prentice-Hall, Inc Optical Fiber Source: Adapted from Panko, Raymond, Business Data Communications and Networking (3 rd ed.), Upper Saddle River, NJ: Prentice-Hall, 2001, p. 278.

1-22 © 2007 Prentice-Hall, Inc Fiber Optic Selection Criteria Attenuation or delay, the reduction of signal strength due to gravitational pull Dispersion, the time distortion of an optical signal that results from discrete wave-length components traveling at different rates Mode-field diameter (MFD), the functional parameter that determines optical performance when a fiber is coupled to a light source, spliced, or bent

1-23 © 2007 Prentice-Hall, Inc Coaxial Cable An early version of the way computers were connected to a network The cable in cable TV Has a copper core that is much thicker than twisted-pair cable, so it allows higher data transmission rates over long distances Transmits up to 10 Mbps for a distance of up to 500 meters Main drawback is its inflexibility and low security

1-24 © 2007 Prentice-Hall, Inc Coaxial Cable

1-25 © 2007 Prentice-Hall, Inc Wireless Technology Data communication without physical attachments Three types of wireless data transmission technology: –Microwave transmission is used to connect LANs in separate buildings that must be within the line of sight of each other –Radio technology by radio frequency with no distance limitations –Infrared transmission operates at frequencies approaching the speed of light

1-26 © 2007 Prentice-Hall, Inc Network Components Network Interface Card –A card installed in a slot in the PC to allow communication between the PC and other PCs in the LAN and beyond –To communicate over a telephone line the PC needs a modem, a device that converts digital signals into analog format for outgoing transmission and converts incoming messages from analog to digital format for computer processing Hubs and Switches –Hub is a piece of hardware that operates at the OSI physical layer and acts as a connecting point –Switch is a piece of hardware that offers a direct connection to a particular PC

1-27 © 2007 Prentice-Hall, Inc Network Components (cont'd) Routers –A piece of hardware that operates at the OSI Internet layer, linking the network into little chunks called network segments –Usually “intelligent” and evaluate the network traffic and can stop local traffic from entering and causing congestion –Make intelligent path choices –Filter out packets that need not be received –Expensive and difficult to operate Gateways –A special-purpose computer that allows communication between dissimilar systems on the network

1-28 © 2007 Prentice-Hall, Inc Network Design Considerations STEP 1: Factors to Keep in Mind Location - Where will the network be installed? Capacity - What is the optimum traffic capacity of the network? Distance Limitations - What is the distance of the farthest PC to the server? Cost - What is the estimated cost of the proposed network installation? Potential Growth - How easily and how well can the network be scaled to meet growing demands? Security - How secure is the proposed network?

1-29 © 2007 Prentice-Hall, Inc Network Design Considerations STEP 2: Hardware and Software Considerations Hardware Requirements Software Requirements Disaster Recovery and Fault-Tolerance Requirements

1-30 © 2007 Prentice-Hall, Inc Network Design Considerations SUCCESSFUL INSTALLATION Conduct a survey of current technology and constraints Document network requirements Decide on the network operating systems Decide on the file server hardware platform Determine the physical environment and client support

1-31 © 2007 Prentice-Hall, Inc Managerial Factors Network management tasks: –Maintain an acceptable level of system availability –Assure good response time –Run the network at optimal capacity –Route voice and data traffic around the clock –Enable managers, employees, and customers to communicate effectively regardless of time, distance, or location

1-32 © 2007 Prentice-Hall, Inc Managerial Factors – (cont’d) Key components of a typical network management system: –The manager - the network administrator manages the network via software loaded on a special workstation –Managed nodes - the manager monitors nodes or pieces of software call agents that communicate with the manager on behalf of the node –Objects - Ports on the managed node that the agent represents to the manager –Management Information Base (MIB) - software that defines the objects that can exist, based on the initial design of the database –Requests and Responses - uses SNMP to allow the manager and agents to work through pre-established cycles

1-33 © 2007 Prentice-Hall, Inc E-Commerce Issues Financial Exposure IP Exposure Legal Security Packet Sniffing Firewalls IPSec Intrusion Detection Systems (IDS)

1-34 © 2007 Prentice-Hall, Inc Management Implications High demand for Technical talent –Project Management –Business Knowledge –Communication Skills –High SalariesHigh Salaries Retaining Talent –Constructive & Timely Feedback –Recognition & Appreciation –Championing Staff Causes –Support Employee Career goals –Match Industry Standards for Salary

Elias M. Awad Third Edition ELECTRONIC COMMERCE From Vision to Fulfillment 1-35© 2007 Prentice-Hall, Inc Intranets and Extranets

1-36 © 2007 Prentice-Hall, Inc The focus of this chapter is on several learning objectives The concept, strategic significance, and technical infrastructure of intranets How to plan for and install an intranet in the organization The many issues, uses, and abuse of via a company’s intranet A company’s extranet and how it links with its partners and vendors through SCM

1-37 © 2007 Prentice-Hall, Inc What Is an Intranet? An intranet delivers collaboration and coordination to employees around the clock –Communication system designed by technical staff –A network of people, not of wired machines –Focus is the message, not the media An organization-wide software and information distribution system that applies Internet technology and standards to a closed network within the organization Normally runs in a client/server environment and a local area network configuration Separated from other networks by firewalls, a means of preventing unauthorized access to the company’s internal data or leaks of sensitive company information

1-38 © 2007 Prentice-Hall, Inc Strategic Significance A cost-effective way of distributing information throughout an organization Links employees and managers around the clock and automates a lot of intra-organizational traffic Makes it possible for a company to gain better access to its primary resource - the knowledge and experience of decision makers Enables easier integration of processes

1-39 © 2007 Prentice-Hall, Inc Applications - Human Resources Employee handbook Benefits information Employee surveys Internal/external recruiting Candidate screening Organization charts Newsletters Company calendar

1-40 © 2007 Prentice-Hall, Inc Applications - Sales and Marketing Product information Market research Prospecting Managing sales contacts Sales training

1-41 © 2007 Prentice-Hall, Inc Applications - Accounting and Finance Financial reports Expense reports Accounts receivable/payable processing Asset management Policies and procedures Payroll

1-42 © 2007 Prentice-Hall, Inc Applications - Manufacturing and Operations Inventory control Production schedules Quality assurance Part order/requisition system

1-43 © 2007 Prentice-Hall, Inc Other Applications for Intranets Real-time broadcasting of news, including medical information. Document management to minimize unnecessary paperwork and waste of paper. Customized application modules like a travel or document library. Complete for interoffice and intraoffice communication. Internal company office circulars can be routed electronically. Bulletin board service.

1-44 © 2007 Prentice-Hall, Inc Other Applications for Intranets (cont’d) Real-time chat service that electronically logs all data for record keeping. Complete company staff, operations, and organizational chart directories. Channel for confidential exchange of data for electronic funds transfers (EFTs) and checks. A daily to-do list and assignments from a central desk to all connected desks. –Shared calendaring Foreign news and financial data broadcasting (running ticker) from direct feeds.

1-45 © 2007 Prentice-Hall, Inc Does Every Company Need an Intranet? A company needs an intranet for the following reasons: –When it has a large pool of information to share among hundreds of employees <100 employees may not be cost effective –Intranets are cheap, robust, and fast. Any employee with access to an intranet can disseminate and publish information –Intranets operate across platforms –Information is available 24/7 to all employees at the click of a mouse –Information available on an intranet can be updated quickly

1-46 © 2007 Prentice-Hall, Inc Intranet Design and Implementation Terms

1-47 © 2007 Prentice-Hall, Inc Client/Server Basics Client/server architecture is a versatile, message- based, modular infrastructure intended to improve usability, flexibility, interoperability, and scalability as compared to centralized, mainframe, time-sharing computing

1-48 © 2007 Prentice-Hall, Inc Types of Client/Server Architecture Two-Tier Architecture Components –User system interface –Processing management –Database management

1-49 © 2007 Prentice-Hall, Inc Types of Client/Server Architecture Two-Tier Architecture (cont’d) Limitations associated with two-tier model –When the number of users grows, performance deteriorates –Implementation of processing management services using vendor proprietary database procedures restricts flexibility –There is limited flexibility in moving program functionality from one server to another without manually regenerating procedural code

1-50 © 2007 Prentice-Hall, Inc Two-tier Client/Server Architecture

1-51 © 2007 Prentice-Hall, Inc Types of Client/Server Architecture Three-Tier Architecture Middle tier is sandwiched between the user system interface client environment and the database management server environment Middle tier manages distributed database integrity in a two-phase process Third tier provides database management and is dedicated to data and file services Allows different tiers to be developed in different languages Improves performance for groups with a large number of users

1-52 © 2007 Prentice-Hall, Inc Three-tier Server Architecture Design

1-53 © 2007 Prentice-Hall, Inc Technologies that Enable Intranets Server PC Client PC Web Server Browser TCP/IP electronic mail Graphic and multimedia files Network File System (NFS) Internet Relay Chat (IRC) HTML authoring tools Hypertext Markup Language (HTML) Portable electronic document (PED)

1-54 © 2007 Prentice-Hall, Inc Using Firewalls Intranets can be protected from unauthorized access via firewalls A firewall is a hardware/software security system that can be programmed to prevent unauthorized access to a company’s intranet or the Internet Two primary types of firewalls: –Proxy is a go-between agent that acts on behalf of another –A packet filter checks each packet at the network level and stops any packets that might be a security risk Intranet security, properly designed by knowledgeable users and administrators, can ensure that the system is run properly

1-55 © 2007 Prentice-Hall, Inc Planning an Intranet Plan ahead Provide justification Build in-house or outsource Form an intranet team Build and test a prototype Ensure effective maintenence

1-56 © 2007 Prentice-Hall, Inc and the Intranet is what intranets are best known for Over 200 million in-boxes are active worldwide is becoming smarter: It now can direct specific messages to defined folders and be a place to check voice, text, and fax messages Intranets inherit Simple Mail Transport Protocol (SMTP) from the TCP/IP suite to operate is a potential threat for employers –Confidentiality breaches –Legal liability –Lost productivity –Damage to company reputation Important for a firm to create an usage policy and make sure the policy is actually implemented

1-57 © 2007 Prentice-Hall, Inc Spamming and Appropriate Use Spamming is sending unwanted advertisements or literature through or the Internet Companies have been overwhelmed by traffic, and spam is out of control Spot checks are no longer adequate Trend is more toward systematic monitoring of e- mail traffic using content-monitoring software

1-58 © 2007 Prentice-Hall, Inc Spamming and Appropriate Use (Cont’d) Spamming is nearly impossible to eliminate, but solutions exist: –Blacklist the sender; obtain a spammer’s address and block any from that address –Accept only from a list of approved addresses –Look for signs of spam –Use anti-spam software Maine Spam Law – tmlhttp://janus.state.me.us/legis/statutes/10/title10sec1497.h tml Federal Can Spam Law – tmhttp:// tm

1-59 © 2007 Prentice-Hall, Inc Personal Guidelines to Avoid Spam Stop giving away your address Do not “unsubscribe,” it only confirms your address is real Write to the Direct Marketing Association and credit bureaus Contact your credit card companies, credit union, and mortgage companies and tell them not to release your name, address and similar data Contact all organizations you belong to, schools, magazines you subscribe to, airline frequent flyer programs, your long- distance telephone carrier, and just about anyone who sends you a bill As a last resort, contact your phone company and change your listing in the phone book, or simply list your name with no address

1-60 © 2007 Prentice-Hall, Inc and Privacy Companies have been wrestling with the issue of privacy versus liability for employee’s activity Firms must have a company policy that addresses privacy. Such a policy should state in writing: –That the company’s intranet and the networks that carry are company property, to be used for business purposes only –A clear definition of what is and what is not appropriate use –A clear message to all employees that of any kind cannot be private and that all may be monitored at any time International privacy law – mlhttp:// ml

1-61 © 2007 Prentice-Hall, Inc Etiquette Sending an message to someone is one-to-one communication as if face-to-face etiquette mistakes to avoid: –Do not write when you’re in a bad mood or angry –Read what you write carefully –Do not use sarcasm in an attempt to be clever –Stay away from using all uppercase –Place the nature of the message in the subject line –Write short s, normally less than two paragraphs –Think before you send –Watch your grammar, spelling, and vernacular –Remember to send your attachment when you say you will

1-62 © 2007 Prentice-Hall, Inc Blogging Practices Four major motivators for blogging: –Maintaining community forums –Articulating ideas through writing –Airing out pent-up emotions –Documenting one’s life

1-63 © 2007 Prentice-Hall, Inc Instant Messaging Sometimes the rapid response of is not fast enough Instant messaging (IM) is one alternative medium IM is an electronic communication system that involves immediate correspondence between two or more users who are all online simultaneously

1-64 © 2007 Prentice-Hall, Inc Extranets and SCM Intranets are localized within a firm and move data quicker than the more widely distributed extranets Extranets are already the backbone of the e-business future Extranet designers at each participating company must collaborate to make sure there is a common interface with the company they are dealing with The overall connectivity represents supply chain management Extranet-SCM and Enterprise Resource Planning (ERP) –ERP facilitates integration of company-wide information systems with the potential to go across companies –The Internet allows linking the Web sites to back-end systems like ERP, offering connections to a host of external parties like vendors and suppliers

1-65 © 2007 Prentice-Hall, Inc Basic Extranet Layout

1-66 © 2007 Prentice-Hall, Inc Key Considerations for Extranet Installation Identify the user(s). List the technology components. Specify the security requirements. Discuss the administration of the extranet. Understand the functions of the extranet.

1-67 © 2007 Prentice-Hall, Inc Extranets and ERP Management support of extranets are changing how organizations share internal resources and interact with the outside business world The entire commitment should be viewed as a knowledge management asset A “champion” represents management support. This person is: –An advocate with the ability to build company-wide support. –Sells top management on the potential of the technology. –Demonstrates how an extranet can help the company meet its revenue goals. Extranets can be used to manage applications and tie applications into one integrated system for deriving real value

1-68 © 2007 Prentice-Hall, Inc Management Implications Intranets are tools to manage corporate intelligence Change is closely related to employee satisfaction, and the effect of the intranet on the way employees do their jobs is important Another management implication is the strategy for recruiting qualified technical personnel

1-69 © 2007 Prentice-Hall, Inc Chapter Summary An intranet is a network connecting a set of company clients using standard Internet protocols Benefits of intranets include linking employees and managers around the clock; companies gain access to their primary resources; and it is the foundation for developing an enterprise-wide information system The two types of client/server architecture are two-tier architecture and three-tier architecture Intranets can be protected from unauthorized access via firewalls

1-70 © 2007 Prentice-Hall, Inc Chapter Summary (Cont’d) Planning an intranet is a six-step procedure is getting smarter An alternative to is instant messaging An extranet links two or more trading partners Intranets are tools to manage corporate intelligence