ELC 200 Day 6
ELECTRONIC COMMERCE
From Vision to Fulfillment
Third Edition
Elias M. Awad
© 2007 Prentice-Hall, Inc
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Agenda
• Questions??
• Assignment 1 not corrected
– I will have it done tomorrow!
• Assignment 2 is posted
– Due February 17th
• Quiz 1 on Friday the 13th
– Chap 1 & 2 from text
– 50 min time limit,
– 20 M/C @ 4 points each
– 4 short essays @ 5 points each
– 1 extra credit @ five points on History of Web browsers
• Finish Discussion on Internet Architecture
• Begin Discussion and Intranets and extranets
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Internet Architecture
ELECTRONIC COMMERCE
From Vision to Fulfillment
Third Edition
Elias M. Awad
© 2007 Prentice-Hall, Inc
1-3
Satellite Internet
Orbits
GEO Satellite System
2. Point-to-Point
Uplink
1.
Geosynchronous
Satellite
3.
Broadcast
Downlink
5. Earth Station A
4.
Footprint
Earth Station B
Satellite appears stationary in sky (35,785 km or 22,236 mi)
Far, so earth station needs dish antenna
At speed of light takes 250 ms to travel distance
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
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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
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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
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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?
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Network Design Considerations
STEP 2: Hardware and Software Considerations
• Hardware Requirements
• Software Requirements
• Disaster Recovery and Fault-Tolerance
Requirements
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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
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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
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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
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E-Commerce Issues
•
•
•
•
•
•
•
Financial Exposure
IP Exposure
Legal Security
Packet Sniffing
Firewalls
IPSec
Intrusion Detection Systems (IDS)
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Management Implications
•
•
High demand for Technical talent
– Project Management
– Business Knowledge
– Communication Skills
– High Salaries
Retaining Talent
– Constructive & Timely Feedback
– Recognition & Appreciation
– Championing Staff Causes
– Support Employee Career goals
– Match Industry Standards for Salary
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Chapter Summary
• A network is a connection between at least two
computers for the purpose of sharing resources.
• Internet host numbers are divided into two parts: the
network part (first two numbers) and the local part
(second two numbers).
• Messages, invoicing, and other information
transmission on the Internet are made possible by
protocols, standards, and other software that
transmits information via packets through a cable to
its destination.
• The OSI Reference Model is a seven-layer model that
defines the basic network functions.
• The standard for the transport layer is TCP, which is
the most popular standard used on the Internet.
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Chapter Summary (cont'd)
• To communicate over a line, you need a modem, which
converts incoming analog signals into digital signals.
• Several factors need to be considered in designing a
network: location, capacity, distance limitations, cost,
potential growth, and security.
• Factors to be considered in selecting network
architecture include: hardware requirements, software
requirements, disaster recovery and fault-tolerance
requirements, and corporate culture and organizational
factors.
• The main implication of networking for management is
that firms need to have a work environment that
technical people find conducive for long-term
employment and one that promotes a career path for
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qualified employees.
Intranets and Extranets
ELECTRONIC COMMERCE
From Vision to Fulfillment
Third Edition
Elias M. Awad
© 2007 Prentice-Hall, Inc
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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 e-mail via a
company’s intranet
• A company’s extranet and how it links with its
partners and vendors through SCM
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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
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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
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Applications - Human Resources
• Employee handbook
• Benefits information
• Employee surveys
• Internal/external recruiting
• Candidate screening
• Organization charts
• Newsletters
• Company calendar
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Applications - Sales and Marketing
• Product information
• Market research
• Prospecting
• Managing sales contacts
• Sales training
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Applications - Accounting and Finance
• Financial reports
• Expense reports
• Accounts receivable/payable processing
• Asset management
• Policies and procedures
• Payroll
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Applications - Manufacturing and Operations
• Inventory control
• Production schedules
• Quality assurance
• Part order/requisition system
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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 e-mail for interoffice and intraoffice
communication.
• Internal company office circulars can be routed
electronically.
• Bulletin board service.
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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.
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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
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Intranet Design and Implementation
Terms
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Client/Server Basics
• Client/server architecture is a versatile, messagebased, modular infrastructure intended to improve
usability, flexibility, interoperability, and
scalability as compared to centralized, mainframe,
time-sharing computing
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Types of Client/Server Architecture
Two-Tier Architecture
• Components
– User system interface
– Processing management
– Database management
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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
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Two-tier Client/Server Architecture
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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
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Three-tier Server Architecture Design
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Technologies that Enable Intranets
• Server PC
• Network File System (NFS)
• Client PC
• Internet Relay Chat (IRC)
• Web Server
• HTML authoring tools
• Browser
• Hypertext Markup
Language (HTML)
• TCP/IP electronic mail
• Graphic and multimedia
files
• Portable electronic
document (PED)
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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
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Planning an Intranet
• Plan ahead
• Provide justification
• Build in-house or outsource
• Form an intranet team
• Build and test a prototype
• Ensure effective maintenance
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E-mail and the Intranet
• E-mail is what intranets are best known for
• Over 200 million in-boxes are active worldwide
• E-mail 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 e-mail
• E-mail is a potential threat for employers
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–
–
–
Confidentiality breaches
Legal liability
Lost productivity
Damage to company reputation
• Important for a firm to create an e-mail usage policy
and make sure the policy is actually implemented
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Spamming and Appropriate E-mail
Use
• Spamming is sending unwanted advertisements or literature
through e-mail or the Internet
• Companies have been overwhelmed by e-mail 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
• http://www.youtube.com/watch?v=anwy2MPT5RE
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Spamming and Appropriate E-mail Use
(Cont’d)
• Spamming is nearly impossible to eliminate, but solutions
exist:
– Blacklist the sender; obtain a spammer’s address and
block any e-mail from that address
– Accept e-mail only from a list of approved addresses
– Look for signs of spam
– Use anti-spam software
• Maine Spam Law
– http://janus.state.me.us/legis/statutes/10/title10sec1497.h
tml
• Federal Can Spam Law
– http://www.fcc.gov/cgb/consumerfacts/canspam.html
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Personal Guidelines to Avoid
Spam
• Stop giving away your e-mail address
• Do not “unsubscribe,” it only confirms your e-mail 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 longdistance 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
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Tony’s Rules for Stopping
Spammers
• Laws don’t work
– Can’t prosecute what you can’t catch
– Laws are tied to jurisdictions, Spammers aren’t
– Spam laws
• Special anti-spam software
– Spammer just get “trickier” and by pass software
• Blocking places that send spam
– Since spammer don’t use their own mail servers you run the
risk of blocking legitimate email
• Best practice –Get more email addresses
– Get an email address just for spammers
• me@hotmail.com
– Protect important emails by using sparingly
• One just for family & friends
• One just for work or school
E-mail and Privacy
• Companies have been wrestling with the issue of privacy
versus liability for employee’s e-mail 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 e-mail
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 e-mail of any kind
cannot be private and that all e-mail may be monitored at any
time
• International email privacy law
– http://www.mofo.com/news/updates/files/update02051.ht
ml
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E-mail Etiquette
• Sending an e-mail message to someone is one-to-one
communication as if face-to-face
• E-mail 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 e-mails, 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
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Blogging Practices
• Four major motivators for blogging:
– Maintaining community forums
– Articulating ideas through writing
– Airing out pent-up emotions
– Documenting one’s life
• https://www.blogger.com/start
• DANGER: Assume that everything you write in a
Blog is readable by everybody on the Internet;
even if you delete the entry. This is also true for
Facebook, MySpace, Twitter and other social
networking sites
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Instant Messaging
• Sometimes the rapid response of e-mail 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
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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
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Basic Extranet Layout
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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.
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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
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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
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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
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Chapter Summary (Cont’d)
• Planning an intranet is a six-step procedure
• E-mail is getting smarter
• An alternative to e-mail is instant messaging
• An extranet links two or more trading partners
• Intranets are tools to manage corporate
intelligence
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