e-Commerce

Unit 3

Unit 3
Structure: 3.1 Introduction Learning objectives 3.2 Network Infrastructure An Overview Components of I-way 3.3 The Internet Hierarchy 3.4 Basic Blocks of e-Commerce 3.5 Network Layers and TCP/IP Protocols Network layers TCP/IP protocols 3.6 The Advantages of Internet 3.7 World Wide Web 3.8 Summary 3.9 Glossary 3.10 Terminal Questions 3.11 Answers 3.12 Case-Let

Network Infrastructure

3.1 Introduction
By now, you must be familiar with the history and evolution of e-commerce. You have also studied about the worldwide e-commerce growth and the roadmap for development of e-commerce in India. In this unit, you will study the internet hierarchy. You will also study the basic blocks of e-commerce. This unit will also deal with the network layers and TCP/IP protocols. You will study the advantages of internet and the role of World Wide Web in e-commerce in this unit. Learning Objectives After studying this unit, you should be able to: Discuss the aspects of internet hierarchy in the world-wide network. Explain the basic blocks of e-commerce. Explain the seven layers of the world-wide network. Discuss the TCP/IP protocols. List the advantages of the internet in the field of e-commerce.

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3.2 Network Infrastructure An Overview

In the previous unit, you studied about the evolution of e-commerce and the worldwide growth of e-commerce. In this unit, let us study about the network infrastructure of e-commerce. Network infrastructure is a structural design in terms of equipment and connections that form a computer network. In information technology, infrastructure refers to the physical hardware used to interconnect computers and users. It comprises the transmission media including telephone lines, cable television lines, and satellites and antennas and also the routers, aggregators, repeaters, and other devices that control transmission paths. Network infrastructure could also include the software used to send, receive, and manage the signals that are transmitted. In the e-commerce scenario, infrastructure includes everything that supports the flow and processing of information. Given the fact that the very backbone of e-commerce is transfer of information on the internet, you can understand the significance of network infrastructure to e-commerce. Network infrastructure1 is a necessary component for e-commerce to transfer content. In e-commerce, I-way is defined as a high-powered, interactive electronic pipeline that is used to transfer content. It is possible for I-way to transfer any kind of content. For example, graphics, text, video, audio, so on. In simple words, I-way can easily transfer multimedia contents. 3.2.1 Components of I-way The three major components of I-way include: Consumer access equipment. Local on-ramps. Global information distribution networks. Consumer access equipment: These are the tools that customers use to get an access to the interactive multimedia contents of e-commerce. Both software and hardware vendors are included in this segment of I-way.

http://wiki.answers.com/Q/Briefly_discuss_the_network_infrastructure_of_e-commerce

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Local or access road, or on-ramps: This is the major segment of I-way that simplifies and shortens the links existing between companies, homes, and universities to the communications backbone. There are four types of providers of access ramps and they are: o Telecom-based. o Cable TV-based. o Wireless-based. o Computer-based online information services.

These providers help in connecting the users and e-commerce application providers. Global information distribution networks: These form the infrastructure that connects countries and continents. The six major I-way issues include: Price: The main thing to be decided here is who is going to pay for constructing the I-way. Subsidies: Who is eligible for subsidies? Distribution of scant resources: Investment in the distribution of different scant resources would be well utilised or not? Regulation: The questions asked here are who is going to fund for the I-way and who is going to write and implement the rules to use the I-way? Worldwide access: The questions raised here are who can access the I-way and at what cost? Privacy and social concerns: Is usage of online resources safe? In cyberspace, everyone has the right to write or publish anything. I-way is the latest buzzword which has no accurate definition. I-way is known by several terms which include: Electronic superhighway. Interactive superhighway. Multimedia superhighway. I-way supports several e-commerce applications. It also offers an interactive connectivity between users and services and between users and other users.

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In the past, a business client who needed voice, data, and videoconferencing services regularly had to use three separate networks- a voice network, a data network, and a videoconferencing network. Today, the increasing demand for e-commerce applications like healthcare, manufacturing, education, and so on has made a way for a network infrastructure that is competent enough to support different types of information. You can already see that many multinational companies and global firms have started to invest in technology to create a new infrastructure, for example, Sony, Time Warner, Viacom, so on. Companies have also started to promote their network infrastructure or develop new products and reorganise their alliances and acquirements to prepare for life on the I-way in a more enhanced way. For example, long-distance and local telephone operators are replacing the old wires with new high-speed fibre optic links to home consumers. Though I-way has tremendous advantages to e-commerce, the initial joy about the I-way tumbles down, as every person involved in the process realises the technological complications. People who are well-versed with the technology realise that building the I-way is a slow and strenuous process.

3.3 The Internet Hierarchy

The internet is the most important constituent of the Information Superhighway network infrastructure. It is a known fact that network infrastructure not only aims at e-commerce application such as home shopping, but also supports many computer-based services. These services include e-mail, information publishing, EDI, information recovery, and videoconferencing. In simple words, Internet acts as a sample or a model for the emerging I-way of which it will be one constituent. Since the internet is developing in size and complexity, and since each of us are adding to its progress and using Internet more often in our day-today life, we need a more organised way to understand the entire hierarchy or structure of the Internet. The best way to understand it is by breaking down the information into logical components.

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Figure 3.1 gives you a brief idea about the different levels in the internet hierarchy. There are five different levels in the Internet Hierarchy2 of needs and they are: Existence needs. Connectivity needs. Organisation needs. Semantic needs. Actualisation.

Figure 3.1: The Internet Hierarchy of Needs

Existence needs: This level deals with fundamental elements required for the internet to function. It includes computers that are connected to each other and the amount of needs. The idea behind the internet hierarchy of needs is very simple: each need is filled before the next need gains its importance, and each need loses its importance as it gets filled. The basic need in any system is existence. Hence, it is not required to worry about hyperlinks, or semantics, or indexing, or meta tagging without existence. Connectivity needs: This is about the skill to make connections between the documents and sites and its consequent implications. Connecting computers is like giving a key to filing cabinet. It is possible

http://blog.webgenomeproject.org/the-internets-hierarchy-of-needs/

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that you can look in it, read files, and also edit them or make some copies. When a link is made from within a document, the object of that link acts as a part of the document. The document is described through the relationship, rather than accessing externally as a stand-alone item. This is a major evolutionary step. Organisation needs or interpreting patterns: This level is mainly about the capability to sort and search, depending on titles, metatags, and contents of the document. Interpreting patterns, of course include discovering things and sorting things. Google was born at this level. The internet becomes ineffective if the connections and content continue to develop without a proper method of organising the information. Organising information on the Internet refers to a total mind shift for us as human beings. It is human tendency that we assume things to be singular: one document, one article, one category. The most common questions asked are: o o What happens when things are multiple with no loss or expense? What is the outcome if you store one thing in thirty different places? And in what way does that affect your category system?

Semantic needs: This level is about the skill to obtain meaning from language, content and context. Semantics refers to interpreting content and obtaining meaning thereof. Semantic Web is a group of methods and technologies to allow machines to understand the meaning - or "semantics" - of information on the World Wide Web.3 The machinereadable metadata enables automated agents and other software to access the Web more intelligently. The agents would then be able to perform tasks automatically and locate related information on behalf of the user. The reason this is such an important job to solve is easy: it signifies a quantum leap in the Internet potential. People now understand the restrictions of the existing system, and they want something that is more advanced. If we inquire the regular Google users what they need, they are bound to reply, More advanced index. If the data is not understood properly, then the progress in our Internet experience will start to decrease.

http://en.wikipedia.org/wiki/Semantic_Web

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Actualisation: The web acts as a frictionless device for personal development and accomplishment. Once the meaning from the data is generalised then the Web is actualised (realised). This, in turn, will help the web to carry out its role as a tool for self-actualisation.

Let us now learn what makes up a computer network structure. Figure 3.2 depicts a typical computer network structure.

Figure 3.2: Computer Network Structure

All the computers connected to the Internet form a part of a network including the computer present at home. For example, it is possible that you may use a modem and then dial a local number to get connected to an Internet Service Provider (ISP). You may be using local area network (LAN) while at work, but you still can get connected to the Internet with the help of an ISP that your company has contracted with. You are part of their network once you connect to your ISP. Later, the ISP connects to a larger network and then becomes part of their network. In simple words, the Internet is a network of networks.
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There is a committed backbone present that connects various regions in large communication companies. The company has a Point of Presence (POP) in every region. The POP is defined as a place where the local users can access the company's network, mostly with the help of a dedicated line or a local phone number. There is no presence of overall controlling network; instead, there are many high-level networks present that connect to each other through Network Access Points or NAPs. Internet backbone In 1987, the National Science Foundation (NSF) established the first highspeed backbone. It was termed as NSFNET and it was a T1 line that helped in connecting 170 smaller networks together and functioned at 1.544 Mbps (million bits per second). Next year, IBM, MCI and Merit created the backbone and developed a T3 (45 Mbps) backbone working with NSF. Backbones are normally fibre optic trunk lines. The trunk line has numerous fibre optic cables that are joined together to raise the capacity. Fibre optic cables4 are designated OC for optical carrier, such as OC-3, OC-12 or OC-48. An OC-3 line is capable of transmitting 155 Mbps while an OC-48 can transmit 2,488 Mbps (2.488 Gbps). When you compare that to a 56K modem transmitting 56,000 bps, you can find how fast a modern backbone is. At present, most of the companies work with their own high-capacity backbones, and all of them interconnect at various NAPs around the world. This helps all the internet users to talk to anyone in the world, no matter where they are and which company they are in. Hence, the entire Internet is a huge and extensive agreement made between the companies to have a proper intercommunication. Internet Protocol: IP addresses An IP Address is a unique identifying number that every machine on the Internet has. The full form of IP is Internet Protocol and it is a language that the computers employ to have a proper communication over the Internet. A protocol5 is a pre-defined way that someone who wants to use a service

4 5

http://computer.howstuffworks.com/internet/basics/internet-infrastructure4.htm http://computer.howstuffworks.com/internet/basics/internet-infrastructure5.htm

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talks with that service. The term "someone" refers to a person or a computer program such as a Web browser. Example for a typical IP address is: 216.27.61.137 IP addresses are usually represented in a decimal format as a dotted decimal number to help people understand and remember easily. However, computers communicate in binary form, for example, look at the same IP address in binary format: 11011000.00011011.00111101.10001001 Octets6 are the four numbers present in an IP address, and when seen in binary form each has eight positions. IP addresses are considered to be 32bit numbers because if you add all the positions together the result is 32. As it is possible that each of the eight positions have two different states (one or zero), the total number of possible combinations per octet is 28 or 256. Hence, each octet can have any value between zero and 255. When you combine the four octets and you get 232 or a possible 4,294,967,296 unique values. Some of the values are restricted from using as typical IP addresses among almost 4.3 billion possible combinations. For example, the IP address 0.0.0.0 is reserved for the default network and the address 255.255.255.255 is used for broadcasts. The octets also fulfil a purpose other than just separating the numbers. The octets also help in creating classes of IP addresses that are allotted to a particular business, which can be either government or other entity depending on size and requirements. The octets are divided into two sections and they are Net and Host. The Net section always has the first octet, and it is used to recognise the network that a computer belongs to. Host helps in identifying the actual computer on the network and it is at times referred to as Node. The last octet is always present in the Host section. There are five IP classes in addition to certain special addresses. Activity 1: Visit any e-commerce organisation and collect information about their internet hierarchy of needs. Hint: Existence needs

http://computer.howstuffworks.com/internet/basics/internet-infrastructure5.htm

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Self Assessment Questions 1. ___________ is a necessary component for e-commerce to transfer content. 2. The tools that the customers use to get an access to the interactive multimedia contents of e-commerce are __________. 3. The other term given to I-way is __________. 4. The level that talks about the skill to make connections between the documents and sites and its consequent implications is __________. 5. ________ refers to interpreting content and obtaining the meaning thereof. 6. The web acts as a _________ device for personal development and accomplishment.

3.4 Basic Blocks of e-Commerce

In the previous section, we discussed about the internet hierarchy. Let us now know about the basic blocks of e-commerce. The e-commerce architecture is divided into layers which help us to have an organised discussion of building blocks of e-commerce in a logical order. Layered architecture of e-commerce systems e-Commerce systems consist of six layers, each layer providing a service. Every layer has a precise function, which is explained separately. The lower layers support the upper layers which helps us to get a logical way to discuss about the e-commerce systems architecture. A possible layered architecture is given in the table 3.1.
Table 3.1: Layered Architecture of e-Commerce systems Layers Application Layer Components C2B e-commerce B2B e-commerce C2C e-commerce C2G e-commerce Value-added networks Digital signature certifying authority Electronic cash Electronic payment schemes Hosting services

Middleman services Layer

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Messaging Layer

Advanced encryption standard Digital encryption standard Public key encryption Digital signature Electronic data interchange World-wide web services and browsers E-mail Hypertext Markup Language (HTML) Hypertext Transfer Protocol (http) Extensible Markup Language (XML) Software agents Search engines Internet Intranet Extranet Firewalls Public switched telephone networks Private communication networks Local area networks Optical fibre and coaxial cable networks Satellite-based networks Wireless networks Cellular networks Routers

Network services layer

Logical Layer

Physical Layer

Let us have a brief discussion about these layers starting from the bottom level. Physical layer: Physical layer is the bottom-most layer in the architecture. This includes the physical infrastructure, for example, wires, satellites, mobile phone system, cables, so on. Providing a communication infrastructure for e-commerce is their function. It is impossible to adopt e-commerce without high speed and dependable electronic communication. The growth of wireless interactions has allowed us to use mobile hand-held computers. As a result, mobile commerce that is abbreviated as m-commerce has come into existence. Logical layer: This layer describes the protocols that are required to have a logical interaction between the computers that are linked by the
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physical network. A protocol is a group of jointly agreed rules. Internet is a worldwide network of computers that have communication with each other using the TCP/IP (Transmission Control Protocol / Internet Protocol). The global recognition of this standard protocol has resulted in the development of the internet as the most important infrastructure for e-commerce. Most of the organisations find it more attractive to use TCP/IP to interrelate computers within their organisation. The two main benefits of this include: o o Letting the organisation to connect the computers made by different companies. Providing the availability of services including browsing, file transfer, e-mail, and so on, obtainable on the internet that may be implemented economically within an organisation. Such a local network within an organisation is referred to as intranet. The major drawback of the internet is that anyone can connect to it. As a result, some anti-social elements access into others computers and steal or damage important files. Hence, special safety measures must be undertaken to prevent illegal access. This is provided by firewalls which protect the intranets of organisations. But, firewalls do not provide complete security from trespassers. Therefore, most of the organisations do not prefer to connect their intranet to the internet. This would avoid electronic communication among cooperating organisations. As a result, many cooperating organisations form a private network interlinking their intranets. Such a private network interlinking the intranets of cooperating organisations is known as an extranet. A private network formed by leasing communication lines is costly when compared to internet usage. Hence, a technique of ensuring safe interaction between cooperating organisations with the help of internet is planned, and this is termed as a virtual private network (VPN).

Network services layer: This layer supplies services on the internet infrastructure and the main service initially was the e-mail service. The most important service at present is the World Wide Web service that helps users to easily get an access to the information stored in computers in any part of the world. HTML (hyper text mark-up language), XML (extensible mark-up language), search engines and
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browsers are different services which make e-commerce functions easier. Messaging layer: Exchanging messages and documents between users in e-commerce is the most essential requirement. For example, delivery notes, purchase orders, so on, are sent via electronic medium, and the cheapest way of performing this is with the help of internet. Internet is the only obtainable system in both C2B and C2C ecommerce. As mentioned before, since anyone can access the internet, there is always the risk of some unlawful elements changing the messages and documents. So, it is required to code the messages before they are sent over the internet. It is also required to have an equivalent of a signature in the electronic medium. These requirements like sending coded messages to make sure the security and the digital signature to validate interactions that are received electronically are given by the messaging layer. Middleman services layer: This layer provides the necessary services to e-commerce users to assist in making their transactions easier. Examples for middleman services include safe credit card payments, validation of signatures done via electronic medium, so on. Value-added systems offer more protected electronic transactions among the users. Hosting services also offer many facilities including web presence for organisations and electronic catalogues and registers so on, to users. Application layer: The application layer helps in providing a particular application. There are different application layer protocols such as simple mail transfer protocol which supports e-mail services, file transfer protocol which supports file transfer services, and hypertext transfer protocol which supports communications between a web client and a web servers commerce applications including those which serve the B2B, C2B, and C2C e-commerce provide the above described services of different layers. Thus, application layer acts as the top-most layer of the layered architecture.

3.5 Network Layers and TCP/IP Protocols

There must be a proper link between computers and agreements or protocols regarding the communication language for any network to be present. Protocol stacks are a kind of software that executes various
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activities required for transmission of data between computers. The protocol stack operates by existing in either a computers memory or in the transmission device memory, for example, network interface card. Currently, TCP/IP (Transmission Control Protocol and Internet Protocol) is more frequently used. 3.5.1 Network layers It has been very helpful for the data networking community to design and plan protocol stacks in terms of layers. The concept of layered architecture assists in explaining the functions of different elements and describes responsibilities clearly. This description is useful in defining the way of interaction between protocols and also defines the limitations of this interaction in different networks. The benefits of network layering include: It is possible to alter or improve any given layer without disturbing the other layers. Functions performed at the lowest level which are close to hardware are influenced by the fast technological revolution. The use of layering protects the higher-level functions. Briefly, various mechanisms are replaced without disturbing more than one layer. Modularisation done with the help of layering alters and simplifies the overall design. Common lower-level services are shared by several other higher-level users. Plug-in compatible connections between several machines of different companies are also done with the help of layering. The interactions between different control functions are understood in a better way when they are divided into layers. This particularly happens with the control actions that take place consecutively in time from layer to layer. 3.5.2 TCP/IP protocols TCP/IP7 belongs to a family of protocol. Samples of these protocols include IP Multicast, Mobile IP, and so on. The exact name given to this group of protocols is Internet Protocol Suite because they describe the methods for achieving certain applications on the internet. For example, electronic messaging, online connections, transfer of files, so on. TCP/IP was

Frontiers of Electronic Commerce By Ravi Kalakota and Andrew B.Whinston

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developed in the early 1970s. The TCP/IP set of protocols was at first used to interlink hosts on ARPANET, PRNET (packet radio), and SATNET (packet satellite). At present, the most widely executed protocol suite that is in use is TCP/IP protocol. The TCP/IP protocol stack has five layers: Application or process layer. Transport layer. Internet work layer. Network layer. Physical layer.

Figure 3.3: Five Layers of TCP/IP Protocol Stack

Application or process layer: This is an application protocol, for example e-mail. Transport layer: It is a protocol which helps in providing services that are necessary for many applications, for example, TCP. Internet work layer: It helps in providing the essential service or getting datagrams to their last destination. Network layer: This layer looks after IP addressing and domain name service (DNS).
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Physical layer: This layer comprises the protocols required to handle a definite physical medium like Ethernet or a point-to-point line. The actual physical infrastructure is at the lowest level of the physical layer. For example, the dedicated links, telephone network, satellite circuits, and so on.

Transmission Control Protocol (TCP) Transmission Control Protocol is defined as a connection-oriented transport protocol that transmits data in the form of a stream of bytes. A link between the requesting port and the port providing services is created and maintained using TCP. It is possible that TCP can give a sending node with delivery data about packets that are transmitted to a destination node. This is done using sequence numbers and acknowledgement messages. In case the data is lost in transfer from source to a destination node, TCP helps in transmitting the data again. This transmission of data is done until a time-out situation is attained or until a successful delivery is accomplished. TCP also assists in providing a data-integrity checking, flow control, packet sequencing, packet retransmission request services, and so on. TCP also identifies duplicate messages and removes those messages properly. If transmission of data from the sending computer to the receiving computer is very fast, then TCP utilises flow-control methods to slow down the data transfer process. TCP also helps in communicating delivery data to the upper-layer protocols and the functions it supports. Internet Protocol (IP) Internet protocol or IP is considered to be the core of the Internet protocol suite. The IP layer also offers services that allow the data to traverse hosts existing on several networks. IP also provides many other services which include inter-network routing, error reporting, and fragmentation and reassembly of information units. Along with IP, the inter-network layer also includes two other protocols namely: Internet Control Message Protocol (ICMP): Offers many services which include diagnostic, error-messaging, and demand-reply functions, for example, replies to packet Internet groper (ping) requests.

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Internet Group Management Protocol (IGMP): This is accountable for User Datagram Protocol (UDP) distribution or multicasting. For example, transmission of UDP packets to all IP machines or to multiple machines on the same inter-network.

IP provides services like packet addressing and best effort forwarding services at the inter-network layer. Basically, it works like a mailroom. It helps in handling and transferring data packets from the transport layer to the physical link layer. Later, it passes back incoming packets that contain destination addresses which are termed as sockets within the machine from the physical link layer to the transport layer. It transmits packets without final addresses in the machine to a router. The network gets the network address of the receiving host via the sending host that ensures that the network routes the data correctly. The Internet routing protocol is executed on both local hosts and on gateways that link two networks. The main task of a gateway is to transmit data from one network to the other and then ensuring that it reaches the proper destination host. After those packets leave the IP mail room, the gateway defines destination. Activity 2: Given below is the link which gives you a brief idea about the Transmission Control Protocol/Internet Protocol.
Hint: http://www.theshulers.com/whitepapers/internet_whitepaper/index.html#tcp

Self Assessment Questions 7. The layer which describes protocols to have a logical interaction between computers that are linked by the physical network is __________. 8. Expand VPN. 9. Exchanging messages and documents between users in e-commerce is the most essential requirement. (True/False). 10. __________ were introduced which are software that execute a various activities required for transmission of data between computers. 11. The layer that helps in providing the essential service or getting datagrams to their last destination is _________.

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12. _________ is defined as a connection-oriented transport protocol that transmits data in the form of stream of bytes.

3.6 The Advantages of Internet

Over the past ten years, e-commerce has seen a rush in profitability. Both small and large companies are opting for the web to gain customer support. Some real advantages of the internet in e-commerce include: Availability 24/7. e-Commerce systems are opened every day. Customers can visit the product website at any time, irrespective of whether it is day or night. In case of service-based functions, bookings or investigations are done at any time of the day to improve the business interest. A worldwide market. Web sites exceed all physical restrictions. If your customer has a PC and an Internet connection, then he/she can carry out business with you. Immediate satisfaction. The Internet gives immediacy. Immediate online payment processes and orders can be made. e-commerce helps to carry out your business dealings in a smooth and more professional way. Increase income by reducing the expenses. The most important benefit of e-commerce is that it is possible to cut down the expenses. There is a need of constant manpower for physical store fronts. The salespersons are replaced by a good website. Additionally, new manufacturers are frequently recognised and they work together reduce the cost of the middle man supplier. Customers help themselves. e-Commerce helps the customers to start their business interactions by accessing the web site when it is convenient for them. As a result, the customers are able to give most of the business information that is otherwise entered by a staff member. This sort of customer outsourcing will help you to cut expenses. The Internet provides an opening for all the sellers to promote their products regardless of their size or location. It also provides the stocking supplier a chance to have direct access to the customer without having to go through the chain of wholesalers and retailers. The major advantage of the internet is that you can have more customers to sell

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your products to, but on the other hand, if you just have a brick and mortar business you will be able to sell only to the local community. The sales done through internet are growing in double digits. The simplicity of placing an online order and getting the products delivered at your doorstep has encouraged the buyers to opt for Internet sales. In reality, if you currently possess a retail business, but you don't have an e-commerce website, then it results in losing sales to your competitors who are engaged in e-commerce. Getting your products online will allow you to promote your business locally. The main advantages of the Internet as an e-commerce medium are easy to define. The web helps to have an immediate change to your overall structure of the business, merchandising, pricing, marketing, advertising, and sales process. The Internet will also help you to change all of this from customer to customer, but this is functional only if you have a web site that will permit it to happen. It is possible for any e-commerce software to provide you with a full-featured site that can be maintained easily. It will also provide you with plenty of support for advertising your website to search engines for both new visitors and existing customers. There are many methods of promoting your products and they are: Opt-in email advertising. Search engine optimisation. Pay-per-click advertising. Affiliate marketing.

3.7 World Wide Web

In the previous section, we studied about some advantages of internet in the e-commerce field. Now, let us discuss about the World Wide Web and its usefulness. The World Wide Web became very popular in the 1990s that changed the trend of information technology in a positive and helpful way. The entire information technology environment was widely recognised for both net savvy people and people who had some fundamental knowledge about the computers. The internet is certainly a type of information highway. Currently, the internet has reached an enormous size and also is ever developing and expanding.
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The internet or the' world wide web' acts as an ideal medium for interaction between people globally. It is also evident that the World Wide Web is recognised as a chosen method of business transactions. Hence, many big business icons are employing e-commerce as a tool to carry out their business. On the other hand, the smaller businesses also use it to a great extent. It is not a tough job to visualise the potential of the web to recognise the huge market value that is obtainable. The internet is attracting more number of people with the help of real time deals and the safe means to carry out financial transactions. The web provides an extensive variety of technologies and models which vary clearly in both purpose and scope. These consist of: Global hypertext publishing concept. Universal reader concept. Client-server concept. Global hypertext publishing concept: This concept supports the thought of a seamless information world wherein you can access and get back all online details in a reliable and easy way. Universal readership concept: This concept encourages the idea of using one application- universal or common user interface to read different documents. Client-server concept: This concept facilitates the web to develop simply without having any centralised control. Any individual can publish information, and anyone provided that they are authorised, can read and download it. Activity 3: Visit any e-commerce organisation and collect information on how the internet has helped them in promoting their products and services. Hint: Availability 24/7 Self Assessment Questions 13. Name any one method of promoting your products. 14. The ________________ acts as an ideal medium for interaction between people globally.

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15. The concept that encourages the idea of using one applicationuniversal or common user interface to read different documents is ___________.

3.8 Summary
Network infrastructure is a very essential component in e-commerce as it helps in transferring content. I-way is a high-powered, interactive electronic pipeline that is used to transfer content in e-commerce, and I-way can transfer any kind of content. This includes graphics, text, video, audio, so on. Initially, a business client had to use separate networks for voice, data, and videoconferencing services. More demand for e-commerce applications has resulted in emergence of a network infrastructure that is competent enough to support different types of information. Internet acts as the most essential constituent of the Information Superhighway network infrastructure. Infrastructure aims at e-commerce application, including home shopping, and it also supports many computerbased services. Hence, Internet acts as a model for the emerging I-way. The e-commerce architecture is categorised into different layers that help in having an organised discussion of building blocks of e-commerce in a logical order. A proper connection between computers and agreements or protocols is very necessary. Protocol stacks are software that perform various activities needed for transmission of data between computers. At present, TCP/IP (Transmission Control Protocol and Internet Protocol) is more often used. World Wide Web is considered to be an ideal medium to have proper communication between people globally. World Wide Web is one of the best chosen method of business transactions. As a result, many big business companies are using e-commerce as a tool to carry out their business.

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3.9 Glossary
Term Firewalls Middleman Modularisation Description A device that guards the access to a private network and keeps out illegal or unnecessary traffic A dealer who purchases from manufacturers and sells to retailers or customers Creation of self-contained and logically related entities that are specified or identified by their interface Study of meanings that normally concentrates on the relation between signifiers, which include words, phrases, signs and symbols A discussion held between two or more members at different sites via computer networks to send out audio and video data

Semantics

Videoconferencing

3.10 Terminal Questions

1. Explain briefly the three major components of I-way. 2. Explain briefly five different levels in Internet Hierarchy of needs. 3. Explain physical layer and logical layer in the layered architecture of e-commerce systems. 4. What are the benefits of network layering? 5. Discuss the advantages of internet in the e-commerce field.

3.11 Answers
Self 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Assessment Questions Network infrastructure. Consumer access equipments Electronic superhighway Connectivity needs Semantics Frictionless Logical layer Virtual private network True Protocol stacks Internetwork layer Transmission Control Protocol
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13. Opt-in email advertising 14. World Wide Web 15. Universal readership concept Terminal Questions 1. Refer section 3.2.1 Components of I-way. 2. Refer section 3.3 The Internet Hierarchy. 3. Refer section 3.4 Basic Blocks of e-commerce. 4. Refer section 3.5.1 Network Layers. 5. Refer section 3.6 The Advantages of Internet.

3.12 Case-Let
This case study is based on an article found in http://www. e-commercepartners.net/Case-Studies/Diamonds.shtml Deemens.com Builds Sparkling e-commerce A business enterprise of well-established sellers, Deemens.com is at present one of the leading online retail destinations for diamond jewellery Europe. Deemens.com consulted ABC e-comm solutions when they were in search of a new interactive agency and referrals. Deemens.com held personal meeting and could see ABC e-comms vision and their better understanding about the diamond business. Story Deemens.com was started in the year 2002, when it got its best domain name. But there was some problem with their online presence initially. Traffic was slow and income was below expectations. The online site had several issues. It was not user or search engine friendly and it did not have a good brand identity. It was not able to retain its customers because of lack of interactivity. Finally, Deemens.com realised that its B2C online scheme required a different strategy. It also looked for interactive professionals who could help the business to be a profitable ebusiness. At this point, ABC e-comm solutions entered. Solution Once ABC conducted a detailed survey, it suggested a completely new online marketing and sales strategy which could help Deemens.com to
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promote its brand and also improve the customer experience, build trust, and increase online sales. ABC created inventive graphic designs to give an aesthetic look and also a luxurious feel to the website. The brand logo, colours, and designs were entirely modified to match with the look and then promote the brand. The site also provided excellent navigation in order to guide shoppers in their buying process and also enhance customer experience. Success After the implementation of a new e-commerce site, incomes increased 200%, accounting for 5% of total company profits. The average time spent on the site went up by more than 100%. Questions: 1. What were the problems faced by Deemens.com with their initial online presence? Hint: Traffic was slow and income was below expectations. 2. What was the solution provided by ABC e-comm Solutions to improve the online presence of Deemens.com? Hint: It suggested a completely new online marketing and sales strategy. References Raves Kalakota and Andrew B.Whinston, Frontiers of Electronic Commerce http://wiki.answers.com/Q/Briefly_discuss_the_network_infrastructure_ of_e-commerce http://ezinearticles.com/?Advantages-of-Ecommerce---5-RealAdvantages-of-Online-Marketing-to-Ponder-About&id=3613945 http://wiki.answers.com/Q/What_are_the_advantages_of_using_the_ internet_as_the_infrastructure_for_electronic_commerce_and_ electronic_business http://ezinearticles.com/?Ecommerce-on-the-WorldwideWeb&id=2423967

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