chapter [4] internet and other technologies created by manish mathur

Created By Manish Mathur

Chapter [4]

InternetAnd

Other Technologies


History and Background• Developed by Dept. Of Defense, USA in 1970.

• Advanced Research Project Agency dev. it and initially named it ARPANET.

• Objectives ~

–Network should continue to function even if any resource fail.

– It should support different hardware and software.

–Network should automatically route the traffic.

– It should be network of networks.

– It should be information based network.


• More then 100 million people connected to it and growing @ 10% per month.

• The 2 ways to get connected are –

–Dial-up Phone lines–Leased Lines

• The connection is provided by ISP.

• It offers 1-1, 1-M, M-1 mode of communication.

• It is multimedia based network.


W.W.W.• Large collection of internet servers that provides

storage facility on cost, on demand.• The space of storage is called web site, the information

stored is called web document and the smallest unit is called web page.

Components


HTML ~ Hyper Text Markup Language is a programming language for

developing web document. It helps to specify the presentation of contents on the web page

and link to other pages.

HTTP ~ Hyper Text Transfer Protocol is a communication standard used

by all the computer in WWW. It is a multimedia based protocol.

URIs ~Uniform Resource Identifier is a string of characters to identify a web resource. It is of two types ~

URN : Uniform Resource NameURL : Uniform Resource Locator


Web Hardware and Software ~Server ~ The computer on which web pages resides are called web servers. They run special server software to allow users to access web pages. WWW is a web of thousands of servers.

Client ~ The computer which access web pages are called client of the server. They run special client software such as Internet Explorer.

Type Internet WWW

Nature Hardware Software

Comprises of Computer, communication Devices, Channels

Web sites and Web pages

Governed by TCP/IP HTTP

Dependency Independent of WWW Dependent on Internet

Internet v/s WWW


Application of Internet

1Communication

Online Offline

1 to 11 to MM to M

2Data Retrieval

Data bases

Web sites

3Publishing

Advertising

E-Commerce


Uses of InternetUses of Internet

• Off-line communication

• Advertising & promotion

• Electronic Trading

• Shareware

• Entertainment

• On-line communication

• Enquiry handling

• Database Access

• Employment

• Education


Intrinsic Benefits Information can be placed at a common

place. Access to information @ reasonable cost. Mechanism of immediate feedback from

customers. Delivery of information @ reasonable cost. Increased employee’s access to

information. Efficient means of information updation.


Type of Connections

Analog/Digital connection ~– It uses ordinary phone line with Modem to dial a

phone no. given by ISP to connect to Internet server. Speed is 56 kbps.

ISDN connection ~– It uses digital phone line that allow Integrated

Service Digital Network for sending, voice, video & data. Speed is 128 kbps.

B-ISDN connection ~– It is broadband ISDN and transfer data over fiber

optic telephone line.


DSL connection ~– Digital Subscriber Line. It does not require to dial

a phone number as it always on.

ADSL connection ~– Asymmetric Digital Subscriber Line. It require

special ADSL Modem. Speed : Sending – 640 kbps and Receiving – 9 mbps.

SDSL connection ~– Symmetric Subscriber Line. It employee ordinary

phone line and special Modem to send or receive data at the speed of 3Mbps.


VDSL connection ~– Very high Digital Subscriber Line. It offers fast data rate

over relatively short distance. Speed – 8 mbps.

Cable connection ~– It used cable modem to provide Broadband Internet

connection over cable TV line. Speed – 20 mbps.

Wireless connection ~– It uses special wireless modem to transfer data using

Radio frequency bands. It is an always on connection.

T-1 line connection ~– It is a leased line connection consisting of 24 individual

channels of speed 63 kbps. We can take one-some-all of these channel.


Bonded T-1 connection ~– It is 2 or more T1 lines that have been bonded

together. They provide 46 channels with speed of 3 mbps.

T-3 line connection ~– It consists of 672 channels supporting data rate

of 45 mbps. It is used by ISPs to connect to Internet Backbone.

Satellite connection ~– It allows user to access the Internet via satellite

in the space. Because of the long distance it is slower in speed (512 kbps).


• It is called TCP/IP.• It is standard of communication on the NET.• It consists of 4 layers ~

Internet Protocol Suite

•DNS, FTP, HTTP, SMTPApplication

•TCP, UDPTransport

•IP, ARPNetwork•PPP, FDDILink


HTTP Hyper Text Transfer Protocol is standard of communication

between web server and web browser. Using HTTP browser sends request to server and server sends

the requested data to browser.

SMTP Simple Mail Transfer Protocol is a standard of communication

between e-mail sender and receiver. IT consists of three command sequence –

MAIL : to define sender’s addressRCPT : to define receiver’s address. It can be multiple receiver.DATA : to define the text message. IT consist of message header and message body.

Advantages

• Easy to manage and filter• Fast and Inexpensive• Secure and reliable


FTPFile Transfer Protocol is standard commonly used to upload web pages to a web site.

NNTPNetwork News Transfer Protocol is a standard of communication for newsgroup. It consists of two components : List of newsgroups and database of messages.

CGICommon Gateway Interface is a standard used by many web server to receive CGI request from browser, executes a script to process the request and finally return the result to browser.

TCPTransmission Control Protocol. It provide services : stream data transfer, efficient data flow control, duplex operation, multiplexing.


IPInternet Protocol is a standard for packet routing, error checking and maintaining data integrity.

VOIPVoice Over Internet Protocol support delivery of voice signals over internet using technique such as – IP telephone, Internet telephony, Broad Band phone etc.

ARPAddress Resolution Protocol is a standard to identify MAC address of a corresponding IP address. For two computers to communicate in a network, they must know each other’s machine’s physical address(MAC).

ICMPInternet Control Message Protocol is a standard to provide communication error and other information back to source.


UDPUser Datagram Protocol is standard that provide connection less method of communication between machine. It is simple, unreliable and packets may be lost.

TelnetThis protocol allow us to connect to remote computer using special telnet client software. Once the connection is established our client becomes a virtual terminal of the remote host.


Intranet

• Privately owned network of the organization developed using public server (Internet server)

• Connects people with internet technology.• Benefits ~

– Easy accessibility of information– Sharing of information– Reduced information updation time– Reduced corporate licensing– Reduced documentation cost– Faster and cheaper creation


Some more key benefits of INTERNET are ~

Workforce Productivity Time Communication Web Publishing Business operation and management Cost-effective Promote common corporate culture Enhance Collaboration Cross-platform capability


Planning and Creating Intranet

Factors to be considered in Planning are ~

Purpose and goals Team building Implementation schedule Information Security Legal issues Level of interactivity Data entry/updation centralized or not Selection of hardware and software Features to be supported


• Application ~

– Telephone directories– Future sales projections– New product development note– Inter-office communication– New job opening– Profile of employees– Company’s hierarchical structure– In-house training of employee– Company calendar– Electronic chat space– Personal Home page– Groupware


ExtranetExtension of an intranet that makes

company network accessible to the out side world.

It provides privacy and security of intranet and retain global reach of internet

It connects intranets of business partners, suppliers, banks etc.

It allows authorized outsiders to communication with the company.


Extranet requires an extra bit of security and privacy controls. This includes – Authorization procedure Firewall server management Digital Certification Encryption VPN tunnel


Extranet Applications

Exchange of documents Share product catalogs Collaborate with other companies Provide access of services of one

company to other companies Share news of common interest.


Extranet Rules Be as flexible as business

It must be flexible enough to provide customized services.

Deploy additional infrastructureCompany should not always create new infrastructure.

Protect the interest of data ownerThe correct user can access the right services.

Serve the partner as customerMust provide services without needing partners to change their system, network, security , firewall etc.

Drive information to decision makerIt must provide progress reports to decision maker to measure performance and popularity.


E-Commerce• According to E-Com forum –

– “E-com is an application of communication technology to provide automated exchange of business information with customer, supplier and financial institution.”

• E-com is a combination of following technologies –– EFT, EBT, EDI, EB, E-mail, BBS, WWW,

Intranet, Digital cash.


Placement of Order

Payment Authorization

request

Authorization response

Order fulfillment

Settlement Request

Settlement deposited

Working of E-Com


Benefits of E-com

Reduced cost to buyer

Reduced time in delivery

Reduced inventory Reduction in

manufacturing cost Equal access to

market Improved market

intelligence

Reduced cost to seller

Reduced cost of delivery

Reduction in advertising cost

Easy entry to remote market

Better quality of goods


Internet’s Role in E-com

Universality Performance Reach Reliability Cost Momentum


E-com

B2B B2C

Direct SellerOn-line

Intermediary

Broker

Buy/sell

fulfillment

Virtual Mall

Metamediary

Bounty

Search

Agent

Shopping facilitator

Infomediary

Advertising based model

Communit

y based model

Fee based model

C2B C2C


Customer Relationship Management (CRM)

• A set of methodology and technology that helps organization to maintain healthy relationship with its customer.

• Many successful CRM software available to support CRM strategy but changes in business policies, procedures, culture, training MIS etc is essential.

• Characteristics of a good CRM program –– Ability to identify customer success factor– Create customer based culture– Ability to adopt customer based measures– Recommend what questions to ask to help customer– Recommend what to tell customer with a complaint


Inbound Lead

Sendingliterature to Suspect

Move to Prospect

Quote prospect

Prospect move to

customer

Service customer

Move to repeat

customer

CRM 360o

Customer View


Architecture of CRM


Improving Customer Relationship

CRM can track customer interest, need, buying habits and tailor company efforts accordingly.

CRM can track customer product use and tailor the service accordingly.

CRM can deliver many services to the customer on-line to increase their satisfaction.

CRM ensures repeat purchase by customers.

CRM enable sales people to achieve one-to-one approach of selling and can automate some elements.


Supply Chain Management (SCM)

According to the council of SCM professionals, SCM is a ~

• Planning and management of activities involved in Sourcing, Procurement and Logistics.

• Coordination and collaboration with channel partners.


Benefits Of

SCM


SCM Issues

SCM addresses the following problems~

1. Distribution Network Configuration : Determining Number and Location of channel partners.

2. Distribution Strategy : Selecting Centralized v/s De-centralized, Pull v/s Push strategy, Third party logistics etc.

3. Information gathering : Integrating IS of channel partners to share valuable information i.e. Demand signals, Forecasting, Transportation etc.

4. Inventory Management : Selecting Quantity and Location of raw data, WIP and finished goods.


Functions of SCM

Functions of SCM can be grouped into 3 levels

Strategic SCM :~

Optimizing SCM network : Number, Location, Size Development of strategic partnership Establishing product design coordination Developing IT infrastructure Decision Making Where and What? Make and

Buy?


Tactical SCM :~

Sourcing contract decision Production decision : Location, schedule Inventory decision : Quantity, Quality, Location Transportation decision : Contract, frequency,

route Bench marking Payment DecisionOperational SCM :~

Daily production & distribution planning Demand planning and forecasting Procurement of material Inbound transportation Outbound transportation Order processing, Accounting and Reporting


Bullwhip effect• Customer demands are rarely stable so company often carry

an inventory buffer called buffer stock.• Greater the variation in demand greater will be the level of

safety stock. This is called Bullwhip or Whiplash effect.

50 retailer 3 – 7 days 50*5 = 250 days10 dealer 7 – 15 days 10*10 = 100 days5 Godown 15 – 30 days 5*20 = 100 days

Total = 450 days

Reasons : Forecast error Lead time variabilityBatch ordering Price fluctuations

Solutions : Vendor managed inventoryJust – in – time replenishmentStrategic Partnership


Electronic Fund Transfer


Electronic Payment

Credit Card

Authorization

Batching

Clearing

Funding


Card Holder

Merchant

Acquirer

Issuing Bank

Purchase request

Product

Au

tho

rization

requ

est

Au

tho

riza

tio

n

Authorizationrequest

Authorization code

Step 1 : Authorization


Step 2 : Batching

The merchant transmits the batch of sales transactions of the day to acquirer to receive the payment.

Step 3 : Clearing

The acquirer sends each sales transaction to the appropriate issuing bank. The bank subtracts the interchange fee and transfer remaining amount to the acquirer.

Step 4 : Funding

The acquirer subtract its discount fee and transfer the remainder to the merchant’s account.


SET • Secure Electronic Transaction is a payment standard

developed jointly by Master card and VISA card.

• It is used to handle C.C. transactions securely.

• Objectives ~

• Provide confidentiality of payment information transmitted

over network.

• Ensure Integrity of all transmitted data.

• Provide system to authenticate the card user.

• Provides protocol that is independent of other security

mechanism.

• Facilitate interoperability between various servers.


• Data Security in SET ~

SET uses Cryptography to protect the data during transmission.

There are two such methods ~

• Symmetric Cryptography

Also called Secret key cryptography, it uses a single key for

coding and decoding.

• Asymmetric Cryptography

Also called Public key cryptography, it uses a key pair for

coding and decoding. The key used for coding is called

Private key (by sender) and for decoding Public key (by

receiver).

These keys are issued by Certifying Authority(CA). The CA

creates a digital document containing private and public key

of the user and his own private key(Root key). This document

is called Digital Signature Certificate.


Electronic ChequeThere 2 systems developed to use e-cheques –

(i)FSTC Here buyer authenticate the cheque by digital signature and

send it electronically to the issuing bank. The E-cheque is then handled by EPH software installed at the bank server.

The user can designate e-cheque as Certified Cheque or Electronic Charge Card Slip(Standard e-cheque).

The National Automated Clearing House Association clears e-cheque and transfer the fund.

(ii) Cyber cashHere buyer, after authentication, send the e-cheque to the seller. The seller then put it to the bank and get transfer of fund into his account.


Smart Card

The plastic card that has an embedded microprocessor chip that stores and manipulates the data.

Contact Card Contact less Card Combo Card

Pre-paid Card pass through the POS terminal, no credit check or signature required.

Electronic Purse


Risk and Security• The popularity of E-commerce depends on the

development of the methods to ensure safety from the inherent risk associated with such kind of business.

• The dimensions of E-com security includes – Integrity : Non-Repudiation : Authenticity : Confidentiality : Privacy : Availability :


• Security considerations from buyer’s point of view – Reliability : Scalability : User friendliness : Secure payment method :

• Seller’s concern – Loss of paper audit trail Business continuity is dependent on single machine Exposure of data to third party Exposing information of trading partners Record retention and retrieval Segregation of duties not possible


• Protection tools –– Fire wall

– Encryption• Hardware encryption• Software encryption

– Message Authentication

– Site blocking• Web site with objectionable material should be blocked

to prevent employee’s access.• Web site that allow fraud transaction to pass through

should be blocked for communication.


Legal Issues

• Jurisdictional problem• Taxation problem• No legal formalities required to setup a

web-shop• Possibilities of fraud transaction• No audit trail


Mobile commerce

• Business trading through mobile devices such cell-phones, PDAs etc.

• The technology behind m-commerce is WAP.

• The affected industries are –– Financial services– Telecommunication– Retail services– Information services


Blue Tooth

• Named in the honor of the king of Denmark Harold Bluetooth.

• Communication system using short range wireless connection.

• Frequency : 2.45 Ghz, • Speed : 1 Mbps • Range : 10 meters


Wi - Fi (WLAN)

• It is a wireless local area network used as a gateway to internet.

• The region covered by the wireless access point is called hotspot, that ranges from a room to several miles.

• Connectivity is peer-to-peer.• Technology can be used by only wi-fi

enabled devices.• Coffee shops, airport lounges, college

campus etc.


All The Best

Manish Mathur

Softech Informatic Systems

1st floor, Anand Nagar, Ajmer (Raj.)

9829106159

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