E-Business and Online Architecture Notes

E-Business

Course Objectives

  • Define "E-business."
  • Understand transaction costs and the Internet.
  • Analyze channel conflict.
  • Analyze disruptive technologies.
  • The Internet (History, Concepts, Services, …)
  • Analyze online architectures.
    • What is the E-business infrastructure?
    • What are the different types of online network architectures?
    • What are their challenges and competitive advantages?
  • Analyze Network Effects.
  • Analyze search engines.
  • Analyze cryptography and secure payments.
  • Synthesize a website using “Joomla CMS”.
  • Evaluate the synthesized website.

History of Internet

  • The Internet is:
    • The interconnection of thousands of networks and millions of computers.
    • Links businesses, educational institutions, government agencies, and individuals.
  • Started as a research project.
    • Experimented with connecting computers together with packet-switched networks.
    • Developed with funding and leadership from the Defense Department’s Advanced Research Projects Agency (ARPA).
  • Provides services such as e-mail, research, and shopping to approximately 1 billion people worldwide.
  • No single organization controls the Internet, nor is it owned by anyone.
    • It has provided the infrastructure for a transformation in commerce, scientific research, and culture.
  • The World Wide Web (WWW) is one of the Internet’s most popular services.
    • Provides access to over 8 billion web pages.
    • Web pages are documents created in HTML (a programming language).
    • Can contain text, graphics, audio, video, and other objects, as well as “hyperlinks”.
    • Hyperlinks permit users to jump easily from one page to another.

Evolution of the Internet

  • 1969: ARPANET (Advanced Research Projects Agency Network).
  • 1972: SMTP (Simple Mail Transfer Protocol): E-mail invented by Row Tomlinson.
  • 1974: First full draft of TCP (Transfer Control Protocol) produced.
  • 1982: ISO releases OSI seven-layer model.
  • 1983: TCP/IP in ARPANET.
  • 1983: Telnet and FTP services are deployed.
  • 1984: DNS (Domain Name System) introduced.
  • 1990: ARPANET ceases to exist.
  • 1990: INTERNET and WWW (World Wide Web).

Protocol

  • Protocols are rules and procedures for communicating.
  • When several computers are networked, the rules and technical procedures governing their communication and interaction are called protocols.

Layered Tasks

  • We use the concept of layers in our daily life. As an example, let us consider two friends who communicate through postal mail. The process of sending a letter to a friend would be complex if there were no services available from the post office.
  • Tasks involved in sending a letter:
    • Sender:
      • Higher layers: The letter is written, put in an envelope, and dropped in a mailbox.
      • Middle layers: The letter is carried from the mailbox to a post office.
      • Lower layers: The letter is delivered to a carrier by the post office. The parcel is carried from the source to the destination.
    • Receiver:
      • Higher layers: The letter is picked up, removed from the envelope, and read.
      • Middle layers: The letter is carried from the post office to the mailbox.
      • Lower layers: The letter is delivered from the carrier to the post office.

The OSI-Model

  • The OSI (Open Systems Interconnection) model is an architectural model that represents networking communications.
  • It was introduced in 1978 by the International Organization for Standardization (ISO) to standardize the levels of services and types of interactions for computers communicating over a network.
  • The OSI model divides network communications into seven layers.
  • Each layer has a defined networking function.
  • An exchange using the OSI model

TCP/IP Protocol

  • Transmission Control Protocol/Internet Protocol (TCP/IP) is a DoD developed, widely accepted and used communications protocol.
  • TCP/IP is an industry-standard suite of protocols that provides communication in a heterogeneous environment.
  • The tasks that are involved in using TCP/IP in the communication process are distributed between protocols that are organized into four distinct layers of the TCP/IP stack.
  • Note: For more information about the TCP/IP protocol suite, see RFC 1180

What Is the Architecture of the TCP/IP Protocol Suite?

  • Application
    • HTTP
    • FTP
    • SMTP
    • DNS
    • POP3
    • SNMP
  • Transport
    • TCP
    • UDP
  • Internet
    • IP
    • ICMP
    • IGMP
    • ARP
  • Network Interface
    • Ethernet
    • Token Ring
    • Frame Relay
    • ATM

Some Application-Layer Protocols

  • HTTP (Hypertext Transfer Protocol):
    • Specifies the client/server interaction processes between Web browsers and Web servers.
  • FTP (File Transfer Protocol):
    • Performs file transfers and basic file management tasks on remote computers.
  • SMTP (Simple Mail Transfer Protocol):
    • Carries e-mail messages between servers and from clients to servers.
  • DNS (Domain Name System):
    • Resolves Internet host names to IP addresses for network communications.
  • POP3 (Post Office Protocol version 3):
    • Used by mail clients for reading e-mail.
  • SNMP (Simple Network Management Protocol):
    • Enables you to collect information about network devices such as hubs, routers, and bridges.
    • Each piece of information to be collected about a device is defined in a Management Information Base (MIB).

Protocol

  • TCP (Transmission Control Protocol):
    • Provides connection-oriented reliable communications for applications.
    • Connection-oriented communication confirms that the destination is ready to receive data before sending.
    • TCP confirms that all packets are received to make communication reliable.
    • Reliable communication is desired in most cases and is used by most applications. Web servers, FTP clients, and other applications that move large amounts of data use TCP.
  • UDP (User Datagram Protocol):
    • Provides connectionless and unreliable communication.
    • Reliable delivery is the responsibility of the application when UDP is used.
    • Applications use UDP for faster communication with less overhead than TCP.
    • Applications such as streaming audio and video use UDP so that a single missing packet will not delay playback.
    • UDP is also used by applications that send small amounts of data, such as DNS name lookups.

ISP (Internet Service Providers)

  • ISP:
    • An ISP is a company that provides the connections and support to access the Internet.
    • It can also provide additional services such as Email and web hosting.
    • Examples of well known ISPs include EarthLink, cyberia,…

ISPs Level of Services

  • When data is transferred, it is either uploaded or downloaded.
    • Downloading refers to information coming from the Internet to your computer, while uploading indicates the reverse path, from your computer to the Internet.
  • When the download transfer rate is different from the upload transfer rate, it is called asymmetric.
  • When the transfer rate is the same in both directions, it is called symmetric.
  • ISPs can offer both asymmetric and symmetric services.

Who Governs the Internet?

  • There is no one governing organization that controls activity on the Internet.
  • Instead, there are several organizations that influence the system and monitor its operations.
  • Among the governing bodies:
    • IAB (Internet Architecture Board),
    • ISOC (Internet Society),
    • ITU (International Telecommunication Union),
    • IETF (Internet Engineering Task Force)

Internet Services

  • Internet protocols and utility programs make the following Internet services possible:
  • The Internet provides many types of services, including several very common ones:
    • Electronic mail (e-mail)
    • File transfer protocol (FTP)
    • Remote login (Telnet)
    • Internet telephony
    • Streaming audio and video
    • Instant Messaging

Electronic Mail (e-mail)

  • E-mail programs can create, send, receive, and store e-mails, as well as reply to, forward, and attach non-text files.
  • Simple Mail Transfer Protocol (SMTP) is used to transmit e-mail messages.
  • Post Office Protocol version 3 (POP3) is used to hold and later retrieve e-mail messages.
  • Multipurpose Internet Mail Extension (MIME) is used to send e-mail attachments.

File Transfer Protocol (FTP)

  • Used to transfer files across the Internet
  • User can upload or download a file
  • The URL for an FTP site begins with ftp://…
  • The three most common ways to access an FTP site are:
    • Through a browser
    • Using special FTP program
    • Issuing FTP commands at a text-based command prompt
  • Trivial File Transfer Protocol (TFTP): enables file transfers between computers
    • Simpler than FTP
    • Relies on UDP at Transport layer

Remote Login (Telnet)

  • Allows a user to remotely log in to a distant computer site
  • User usually needs a login and password to access a remote computer site
  • User saves money on long-distance telephone charges

HTTP Protocol

  • HTTP delivers requested Web pages, allowing users to view them.

Voice Over IP

  • The transfer of voice signals using a packet-switched network and the IP protocol
  • Voice over IP (VoIP) can be internal to a company (private VoIP) or can be external using the Internet
  • VoIP consumes many resources and may not always work well, but can be cost-effective in certain situations
  • Three basic ways to make a telephone call using VoIP:
    • PC to PC using sound cards and headsets (or speakers and microphone)
    • PC to telephone (need a gateway to convert IP addresses to telephone numbers)
    • Telephone to telephone (need gateways)

Instant Messaging

  • Allows a user to see if people are currently logged in on the network and to send short messages in real time
  • Consumes less resources than e-mail, and faster
  • Numerous Internet service providers such as America Online, Yahoo!, and Microsoft MSN offer instant messaging

Streaming Audio and Video

  • The continuous download of a compressed audio or video file, which can be heard or viewed on the user’s workstation

E-business infrastructure

  • E-business infrastructure is the collection of platforms, networks, products, applications, databases and the business rules governing the flow of data and work among them, both internally and to external systems.
  • The infrastructure is necessary for an organization to carry out e-business operations successfully.

Network infrastructure

  • A network is a group of two or more computer systems linked together. There are many types of computer networks.
  • Network infrastructure consists of switches, bridges and routers, multilayer switching, VLANs, LANs and WANs.

Network infrastructure

  • LANs are used to connect machines in a small area (office or lab)
  • WANs connect systems scattered over a wide geographic area.
  • VLANs are virtual LANs that don't have any physical connections.

Network infrastructure

  • Enterprise networks, includes the Internet, extranet and Intranet.
    • Extranets are networks that connect a company to its suppliers, customers and other channel partners.
    • Intranets are internal networks within a company that are used to share information among employees.

Intranet

  • An Intranet is a whole of Internet services (for example a Web server) intern with a local area network, i.e. accessible only starting from the stations from a local area network and invisible from outside.
  • It consists in using the standards customer server of the Internet (by using them protocols TCP/IP), such as for example the use of navigators Internet, and of the web servers (protocol HTTP), to carry out an information system interns with an organization or a company.

Intranet Utility

  • An Intranet in a company makes it possible to easily place at the disposal of the employees various and varied documents (texts, images, videos, sounds…).
  • Here some of the functions which an Intranet can fulfill:
    • Provision of information on the company
    • Search of documentations
    • A data exchange between collaborators
    • Electronic messaging
    • Videoconference
    • Etc…

Network infrastructure

  • Switches, Bridges and Hubs are used for connecting machines in the LAN or machines in the same segment of a network.
  • Routers perform the same function as bridges, but they also filter the information passing through a different networks.

Network infrastructure

  • Firewalls
    • Protection framework
    • filter the incoming and outgoing traffic that flows through a system.

Network infrastructure

  • Firewalls can enhance the security of a host or a network.
    • Protect and insulate the applications, services, and machines of an internal network from unwanted traffic from the public Internet.
    • Limit or disable access from hosts of the internal network to services of the public Internet.

Network infrastructure

  • A firewall
    • Use one or more sets of “rules” to inspect network packets as they come in or go out of network connections
    • Check one or more characteristics of the packets the protocol type (TCP, UDP,…) source or destination IP address source or destination port
    • Either allows the traffic through or blocks it based on rules.

Network infrastructure

  • URL and domain names
    • Web addresses are structured in a standard way as follows:
      • http://www.domain-name.extension/filename.html
    • URL
      • URL is an acronym for Uniform Resource Locator and is a reference (an address) to a resource on the Internet
    • Domain name
      • Domain names are used in URLs to identify particular Web pages
      • Every domain name has a suffix that indicates which top level domain (TLD) it belongs to

Network infrastructure

  • What do the following extensions or global top level domains stand for?
    • .com: commercial business
    • .org: Organizations (nonprofit)
    • .gov: government agencies
    • .edu: Educational institutions
    • .net: Network organizations
    • .info: Authoritative resources
    • .mil: Military
    • .lb: Lebanon
    • .ca: Canada

Network functions

  • Information exchange/sharing
    • File/data transfer
    • Distant file/data access
  • Resource sharing
    • Printers
    • Power of computation
    • Storing and saving
  • Communication
    • Electronic Webmail
    • Chat
    • Online Publication

Typical Network problems

  • Web site communications too slow
  • Web site not available
  • Bugs on site through pages being unavailable or information typed in forms not being executed
  • Ordered products not delivered on time
  • E-mails not replied to
  • Customers’ privacy or trust is broken through security problems such as
    • credit cards being stolen
    • addresses sold to other companies

Network infrastructure

  • Example
    • On a typical day, eBay sells…..
      • Over 1 million items
      • A Video game every 8 seconds
      • A car every hour
      • An article of clothing every 2 seconds
      • A digital camera every minute
      • A piece of Jewelry every 80 seconds

Technical Architectures

  • The design of the brick & mortar store, the layout of the store can all be huge advantages, and differential ways by which companies can compete.

Technical Architectures

  • The analogy to the online world would be creating the design of a website.
    • Design of a website
    • Navigation
    • Colors
    • The way it operates

Technical Architectures

  • Avoid the user of having to think a lot:
    • Attractive home page
    • Simple and user-friendly menu
    • Well-visible action buttons on all pages
    • Possibility of returning to the homepage easily

Technical Architectures

  • Be welcoming as in a boutique
    • Nice picture, photos, videos
    • Clear and credible message for the user
    • Quality editorial content
    • Based on well-chosen keywords
    • The visitor becomes a prospect who becomes a client …
  • A site must have “3 obsessions”
    • Be visible on the Internet (easy to find)
    • Retain visitors who have clicked to get there (using Internet cookies)
    • Make the user act (conversion)
  • A cookie is information saved by your web browser. When you visit a website, the site may place a cookie on your web browser so it can recognize your device in the future. If you return to that site later on, it can read that cookie to remember you from your last visit and keep track of you over time.

Technical Architectures

  • Examples of a home page.
  • Examples of 2 pages of landing
    • Not to do: send the user to the homepage of the site (not suitable for the ad)
    • To do: send the user to a simple and clear page with action buttons and consistent with the announcement

Technical Architectures

  • When companies are operating online (E business) they are very different from offline companies.
    • it needs to have a technical architecture.
      • a source of competitive advantage
  • The fundamental issue:
    • In the offline world you have a store.
    • In the online world you have an underlying technical architecture.
      • Client/server architecture
      • Peer to Peer architecture

Client/server Architecture

  • Client/server architecture is a computing model in which the server
    • Hosts requests from clients
    • Delivers responses
    • Manages most of the resources and services to be consumed by the client.
  • This type of architecture has one or more client computers connected to a central server over a network or Internet connection.
  • This system shares computing resources.

Client/server Architecture

  • Client description :
    • Role of a consumer in the network
    • Uses the services of one or several servers (multi-level architecture)
  • Role of Client:
    • Requests the execution of one or several tasks
    • Receives results or services from the server (time, files, connection, etc.)
    • Offers a user interface

Client/server Architecture

  • Server description :
    • Exists on a network
    • Offers clients different services
    • Responsible of executing tasks
    • Initially passive (or slave, waiting for a request)
  • Role of a server :
    • Respond to clients requests
    • Executes requested tasks
    • Return responses to clients

Advantages of Client/server architecture

  • Advantages of client/server architecture:
    • Recommended for networks needing a high level of charge
    • Centralized resources
      • Simplifies security controls and updating
    • Less need for clients administration

Disadvantages of client/server architecture

  • Disadvantages of client/server architecture :
    • High cost due to server maintenance
    • Disponibility issues when server crashes
      • The network is architectured around the server
    • Clients can only see the server
    • Risks of not supporting the workload (too much clients)
    • What if the server is non longer functioning?!
      • Single point of failure

Peer to Peer Architecture

  • Peer-to-peer (P2P) is a decentralized communications model in which
    • each party has the same capabilities
    • either party can initiate a communication session.
    • each node functions as both a client and server.

Peer to Peer Architecture

  • Example: Napster
    • Online company created by a 19 year old guy called Shawn Fanning out of Harvard
    • Music industry: share songs between users
    • In the case of Napster, all the nodes are users.
    • Users are interconnected to each other.
    • These users are sharing music files
      • The search spreads like a tree

Peer to Peer Architecture

  • Example: Skype (VoIP operator)
    • Make phone calls (or call normal landlines)
    • Make video calls
    • Chat
    • Share files
  • Competitive advantages of Skype
    • Scalable (grow very fast)
    • Low cost (it does not have to lay down any pipes, its uses the infrastructure of the internet)
    • Offers multiple services
    • Easy access and use
    • Ability to partner with other products
      • Play games on skype

Peer to Peer Architecture

  • Skype is based on P2P architecture It's a direct connection to the other peer
  • How Skype works?
    • Log into a login server
      • Authentication
    • Connect to a directory server (Super Node)
      • The user downloads a host cache
        • IP and port information of all SN
        • information about where the different users are
        • how do you locate different users

Advantages of P2P architecture

  • A P2P architecture is
    • the lowest way by which an online company can offer a network to supply a product or a service.
    • a way by which an online company can actually
      • improve its performance
      • improve its capability
      • have greater bandwidth and performance as the network increases in size.

Advantages of P2P architecture

  • Extremely robust against failure
    • no single node which constitutes a point of failure
    • How does one bring a P2P architecture down?
      • That's very hard.
      • which node do you destroy?

Advantages of P2P architecture

  • Why are business models be based upon P2P architecture are disruptive?
    • Think about cost – will it be lower than traditional competitors?
    • Think about performance – will it be lower especially when the network is small?
  • P2P architecture can be an inherent and competitive advantage for online business
    • Companies whose architectures are based upon P2P turn out to be disruptive in nature
    • An e-commerce company with a technical architecture based upon the P2P architecture land up being more robust.

Challenges of P2P architecture

  • P2P architecture relies on user’s machines without control
    • if anything happens to the user’s bandwidth or the user’s machines or their capabilities, in that case it makes the whole network very vulnerable
    • In 2003, Skype has 48,000 supernodes.
    • In 2012, it has 10,000 SN.
    • Make into a hybrid architecture
      • It's no longer just relying on SN,
      • It's also putting its own regular directory servers
  • Legal issues
    • E.g sharing music files

Presentations

  • Online Auctions
  • Google
  • Facebook
  • Amazon
  • Ebay
  • VoIP (Skype)
  • Fastbooking, Expedia, Opodio
  • How to make money on social media

Presentations

  • Brief history
    • Date of foundation
    • Idea behind building the business
  • Business Model
  • Products/Services
  • Revenue Model
  • Challenges
  • Perspectives