E-COMMERCE

INFRASTRUCTURE &
WEB
DEVELOPMENT
CHAPTER 3 & 4 LAUDON
FIND ANSWERS OF THESE QUESTIONS
(WILL BE ASKED IN WEEK 4)

1. What is a business model? How does it differ from a business plan?

2. Why is targeting a market niche generally smarter for a community
provider than targeting a large market segment?
3. What are some of the specific ways that a company can obtain a
competitive advantage?
4. Besides advertising and product sampling, what are some other market
strategies a company might pursue?
5. How do venture capitalists differ from angel investors?
6. Why is it difficult to categorize e-commerce business models?
7. What is a reverse auction? What company is an example of this type of
business?
8. What are five generic business strategies for achieving a profitable
business?
9. What is the difference between a market opportunity and a
marketspace?
10. What is crowdfunding and how does it help e-commerce companies
raise capital?
 CHAPTER 3
INFRASTRUCTURE
KEY TECHNOLOGY CONCEPT
BEHIND THE INTERNET
• Packet switching, TCP/IP, and client/server technology are key
technology concepts behind the Internet.
• The mobile platform has become the primary means for
accessing the Internet.
• Cloud computing refers to a model of computing in which
firms and individuals obtain computing power and software
applications over the Internet, rather than purchasing the
hardware and software and installing it on their own
computers.
• Internet protocols and utility programs such as BGP, HTTP,
SMTP and POP, SSL and TLS, FTP, Telnet, Ping, and Tracert
provide a number of Internet services.
DEFINITION

• Packet switching
✓ a method of slicing digital messages into packets, sending the packets along different
communication paths as they become available, and then reassembling the packets once
they arrive at their destination
• Packets
✓ the discrete units into which digital messages are sliced for transmission over the Internet
• Router
✓ special-purpose computer that interconnects the computer networks that make up the
Internet and routes packets to their ultimate destination as they travel the internet
• Routing Algorithm
✓ computer program that ensures that packets take the best available path toward their
destination
DEFINITION

• Protocol:
✓ set of rules and standards for data transfer
• Transmission Control Protocol/Internet Protocol (TCP/IP)
✓ core communications protocol for the Internet
• TCP
✓ establishes connections among sending and receiving computers and handles assembly and reassembly
of packets
• IP
• provides the Internet’s addressing scheme and is responsible for delivery of packets
• Network Interface Layer
✓ responsible for placing packets on and
receiving them from the network medium
• Internet Layer
✓ responsible for addressing, packaging, and
routing messages on the Internet
• Transport Layer
✓ responsible for providing communication
with other protocols within TCP/IP suite
• Application Layer
✓ includes protocols used to provide user
services or exchange data
• Border Gateway Protocol (BGP)
✓ enables exchange of routing information
among systems on the Internet
THE CURRENT
STRUCTURE OF THE
INTERNET

• The main structural elements of

the Internet are the backbone
(composed primarily high-
bandwidth fiber optic cable), IXPs
(hubs that use high-speed switching
computers to connect to the
backbone), CANs
(campus/corporate area networks),
and ISPs (which deal with the “last
mile” of service to homes and
offices).
KEY CONCEPT ON
HOW THE WEB WORKS

• Hypertext
• HTTP
• URLs
• HTML
• XML
• web server software
• web clients
• web browsers.
 LIMITATIONS OF TODAY’S INTERNET

bandwidth limitations, quality of service

limitations, network architecture
limitations, language limitations, and
limitations arising from the wired nature Internet 2.0
of the Internet.

➢increased bandwidth and expanded connections will result in a

number of benefits, including latency solutions; guaranteed service
levels; lower error rates; and declining costs.
➢The Internet of Things will be a big part of the Internet of the future,
with more and more sensor equipped machines and devices
connected to the Internet.
CHAPTER 4 WEB
DEVELOPMENT
QUESTIONS YOU MUST ASK AND ANSWER WHEN
DEVELOPING AN E-COMMERCE PRESENCE
What is your
What is your Who and where What are the
vision and how do
business and is the target characteristics of
you hope to
revenue model? audience? the marketplace?
accomplish it?

Where is the Develop an e-

Conduct a SWOT Develop a
content coming commerce
analysis. timeline.
from? presence map.

Develop a
detailed budget.
FACTORS YOU MUST CONSIDER WHEN BUILDING
AN E-COMMERCE SITE

telecommunications
Hardware Software
capacity

website and mobile organizational

human resources
platform design capabilities
 System Analysis/Planning:
develop system
Identify business objectives information requirements
functionalities

System Design

logical design physical design

THE SYSTEMS
Build the site
DEVELOPMENT
in-house outsourcing
LIFE CYCLE
(SDLC)
Testing
unit testing, system testing,
A/B (split) testing multivariate testing
acceptance testing

Implementation
Implement maintain the site.
 THE BASIC
BUSINESS
AND SYSTEM
FUNCTIONAL
ITIES
SYSTEM DESIGN

Logical design Physical design

BUILD THE SITE

• Advantages of building a site in-house

include the ability to change and
adapt the site quickly as the market
demands and the ability to build a
site that does exactly what the
company needs.
• Disadvantages of building a site in-
house include higher costs, greater
risks of failure, a more time
consuming process, and a longer staff
learning curve that delays time to
market.
IMPORTANT CONSIDERATIONS
WHEN SELECTING AN
OPERATING SYSTEM AND
HARDWARE

Speed

Scalability Capacity
WEBSITE DESIGN CONSIDERATION
TESTING

Final acceptance A/B testing (or Multivariate

Unit testing System testing
testing split testing) testing
testing the site’s testing the site as a firm’s key personnel and showing two versions identifying specific
program modules one whole, in the same way managers in marketing, (A and B) of a web page elements, or variables,
at a time. a typical user would production, sales, and or website to different on a web page, such as
when using the site. general management users to see which one a headline, image,
actually use the system performs better. button and text,
as installed on a test creating versions for
Internet or intranet each element, and then
server. creating a unique
combination of each
element and version to
test.
IMPLEMENTATION
DISCUSSION
• Ask the students to work within
groups to discuss about System
Planning/basic business and system
functionality analysis for their
project based on table 4.2
NEXT WEEK

• Lab session

• Topic: Web development

• Separate groups into two each consist of max 25
students for 1st and 2nd schedule
HOMEWORK

• Prepare presentation based on their discussion results (presented on week 6)

• Create a web site for their project (presented on week 7)
• Ask the students to learn, implement on their web site and make presentation report
about these tools (presented on week 7):
• Google Webmaster
• Web analytics (e.g Google Analytics)
• Page speed test
• Google optimize (A/B testing and multivariate testing)
https://support.google.com/optimize/answer/7012154?hl=en
 QUESTIONS FOR WEEK 6
• Chapter 3:
1. What is latency, and how does it interfere with Internet functioning?
2. Compare and contrast intranets and the Internet as a whole.
3. What advances and features does HTML5 offer?
4. Name and describe five services currently available through the Web.
• Chapter 4:
1. Compare the costs for system development and system maintenance. Which is more expensive, and why?
2. Why is a website so costly to maintain? Discuss the main factors that impact cost.
3. What are the main differences between single-tier and multi-tier site architecture?
4. Name the basic functionalities a web server should provide.
5. Compare and contrast the various scaling methods. Explain why scalability is a key business issue for websites.
6. What are Java and JavaScript? What role do they play in website design?
7. What is the difference between a mobile web app and a native app?
8. What is PHP and how is it used in web development?
THANK YOU
-YRZ-