fundamentals of ecommerce

7/30/2019 Fundamentals of ECommerce

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FUNDAMENTALS

OFECOMMERCE

BY

Dr. S SUBASREE, M.Tech,Ph.D

ECOMMERCE


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TOPICS

Fundamentals of E-Commerce

Frame Work of E-Commerce

Types of E-Commerce

Interdiciplinary Nature of E-commerce

Advantages and Disadvantages of E-commerce

Enabling ToolsInternetIntranetExtranetWWWXML

WMLWAP


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DEFINITION OF ECOMMERCE

E-commerce is an emerging medium where you canperform the process of selling and purchasing ofservices and information using internet.

E-commerce use computer networks to search andretrieve information in support of human andcorporate decision making.

E-commerce is association where buying and sellingof information product and services via computernetworks and it is called information super highway.


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PERSPECTIVE OF ECOMMERCE

There are 4 different perspective of E-commerce.They are

1. Communication perspective

2. Business perspective

3. Service perspective

4. Online perspective


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DEFINITION OF ECOMMERCE

E-commerce is an emerging medium where you canperform the process of selling and purchasing ofservices and information using internet.

E-commerce use computer networks to search andretrieve information in support of human andcorporate decision making.

E-commerce is association where buying and sellingof information product and services via computernetworks and it is called information super highway.


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COMMUNICATION PERSPECTIVE

From a communication perspective, e-commerce isthe delivery of information either by using local areanetwork or by using wide area network.

The information can be transferred from source todestination without any packet loss.

The delivery of information may be a product,services and payments over a telephone line or computernetworks on any other electronic means.


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BUSINESS PERSPECTIVE

From a business perspective e-commerce is theapplication of technology towards the automation ofbusiness transaction and workflow (Sequence ofwork).

It is planned to reduce the manual works.

Because of online transaction of information speed upthe delivery process.

Paper based transactions reduce the maintenancework of hardcopy informations.


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SERVICE PERSPECTIVE

From a service perspective, e-commerceis a tool thataddresses the desire of firms, consumer andmanagement to cut down the service cost whileimproving the quality of goods and increasing the speed

of service delivery.

Through online communication it reaches theinformation to the receiver in faster manner.

Because of this it will speed up the transactions.


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ONLINE PERSPECTIVE

From online perspective, e-commerce provides thecapability of buying and selling product andinformation on the internet and other online services.

Searching is very easy for the customers

Purchase order is available by clikcing the button.

on purchasing, the payment transactions can becarried out easily by the customer using onlinepayment system

Faster communication is possible with the vendorregarding sharing of informations.


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FRAMEWORK OF E-COMMERCE

Public Policy

Legal and

Privacy Issues

Technical standards

for Electronic documents

Multimedia & Protocols


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FRAMEWORK OF ECOMMERCE

E-commerce Applications:-Stocks-jobs-Online Transaction

-Customer Service & Auctions

Major Areas:

People- Buyer, Seller, Intermediate Person, Serviceinformation, System people management.

Public policy-taxes, Legal and privacy issues, Domainnames.Technical Standards: For documents, security, networkprotocols, payments


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Organization: Partners, competitors, Association ofgovernment services.

Infrastructure: Common Business Service infrastructure

a) Securityb) Paymentc) Catalogs

Messaging and information Distribution- Email, Electronic Data Interchange (EDI).

Multimedia Network Publishing Infrastructure- Need HTML (for advertising using designs),

java, www, Virtual Reality Markup language(VRML)


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Network Communication Infrastructure- Cable TV, Wireless medium, WAN, LAN,

internet, intranet etc.

Interface Infrastructure-w Connecting people- Customer, Buyer, Database application.


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CLASSIFICATION OF ECOMMERCE

There are 3 broad categories of E-commerce

1. Electronic market

2. Inter Organizational System3. Providing Services


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ELECTRONIC MARKET

A market is a network of interaction and relationshipwhere information, products, services and paymentsare exchanged.

If the market place is a electronic medium then thereis no physical building but rather it has networkbased location where business interaction occurs.

WORKING OF


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WORKING OF

ELECTRONIC MARKET


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INTER ORGANISATIONAL SYSTEM

The communication will be taking place betweenorganizations or it may be taking place the departmentsof a particular organization. It is used interact within the organisation and also

it perform interaction with outside organisation. If the departments are located in different placesand they want to share the information in secured waythey use this IOS. The employee of that particular organisation have aspecial user name and password and they can alone

share the information. Outside people of the organisation does not havethis facilities. The predefined agreement is possible in IOSsystem but it is not possible in Electronic Market.


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TYPES OFINTER ORGAISATIONAL SYSTEM

1) Electronic Data Exchange(EDI)It uses value added network for B2B transaction.

2) Extranet

It connects internet with intranet.3) Electronic Fund Transfer (EFT)Payment for the products using e-market.

4) Electronic FormsPaper based records can be converted to e-based.

5) Integrated Messages

Combining of FAX, email, EDI6) Shared Database

It can be accessed from anywhere else.


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DIFFERENCE BETWEEN

ELECTRONIC MARKET AND IOS


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PROVIDING CUSTOMER SERVICE

Warranty period services- During this period the customer can be

provided the services by the vendor. Guaranty period services

- During this period the customer can beprovided the free services by the vendor. Customer services during repair works

- If the product is failed, then the vendor hasto identify the problem and do the repair works. Subscription services

- For maintaining the products the customerhas to pay some amount to the vendor so that they willdo some service to the customer.


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CLASSIFICATION OF ECOMMERCE ACCORDING

TO TRANSACTION

Business-to- Business (B2B) [Eg.IOS]

Business-to- Customer (B2C) [eg.EM]

Customer- to- Customer (C2C) [eg.classified.com]

Customer-to- Business (C2B) [Eg.car sales]

Non Business Ecommerce [Academic organization,Religious org]

Intra Business Ecommerce [Within organizationbetween Departments]


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TO TRANSACTION

Business-to- Business (B2B)

It provide Inter-organisational interaction andtransactions.

This type of Ecommerce require two or more businessentities interacting with each other directly or indirectlythrough intermediary. The intermediary may be market makers or directoryservice providers, who assist in matching buyers andsellers.

B2B commerce can be a Supplier-Centric Buyer-Centric Intermediary-Centric


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TO TRANSACTION

Supplier-Centric

Supplier set up the electronic marketplace

Various customer/buyer businesses interactwith the supplier with its marketplace.

It is done by the dominant suppliers.

The supplier can attract the customer by

providing various pricing schemes.

Differential price structure is dependent uponthe volume and loyalty discount.


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TO TRANSACTION

Buyer-Centric

In buyer centric major businesses with high volumepurchase capacity create an electronic commercemarketplace for purchase and acquisition.

The online Ecommerce marketplace is used by thebuyer for placing Requests For Quotations (RFQs)and carrying out the entire purchase process.

This kind of facility may be utilized by high volumeand well recognised buyers.

Example will be United state Government andGeneral Electric Trading process network are

examples of buyer centric commerce.


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TO TRANSACTION

Intermediary-Centric

Here the third party set up the electroniccommerce marketplace.

It attract the buyer and seller businesses to interactThe buyer and seller have increased option ofpricing, quality, availability and delivery of goods.

It act as a hub for both the buyer and seller where

buyer can quote their quotations and seller can bidelectronically leading the match will ultimately to afinal transactions.


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TO TRANSACTION

Business to Customer Electronic Commerce

B2C commerce offer consumers the capacity tobrowse,select, and buy merchandise online, from a widervariety of sellers and at better prices.

Two or more entities that interact with each other inthis type.

one is the customer and another one is seller.

In this type the seller and customer both benefitedbecause the round the clock transaction is possible.


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TO TRANSACTION

The B2C model of electronic commerce transaction isideally suited for the following types of merchandise:

Goods that can be easily transformed into digital format,such as books, music, clips, videos and software packages

Items that follows the standard specifications, like printerribbon and ink cartridges etc.

Highly rated branded items with return security, such as Delland Compaq computers, electronic gadgets from sony etc.

Items sold in packets that cannot be opened even in physicalstores eg. Kodak film rolls.

Relatively cheap items

Item that can be experienced online such as music,videosetc.

C ASS CA O O CO C ACCO G


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TO TRANSACTION

Consumer to Business (C2B)

Here the transaction is originated by the customer

He specify the specific price for the commodity,service oritem.

C2B enables a customer to determine the price of a productand service offered by a company.

In this type, the consumer get a choice of a wise variety ofcommodities and services, along with the opportunity tospecify the range of prices they can afford or willing to payfor a particular item, service, or commodity.

Because of that it reduces the bargaining time, increasesthe flexibility and creates ease at the point of sale for boththe merchant and the consumer.



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TO TRANSACTION

Consumer to Consumer (C2C)

C2C is the electronic commerce activity that provides theopportunity for trading of products or services amongstconsumers who are connected through the internet. In this category the electronic tools and internet

infrastructure are employed to support transaction betweenindividuals. Traditional economic activities like Classifiedadvertisement and auctions of personal things are the basiccategories. C2C allows the customer to customer in the internet. It can be conducted through both trading forums andintermediaries such as auctions, classified advertisementsand collectible shows.



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TO TRANSACTION

Non Business Commerce

The it is run by the educational institutions having their websites

Here the transactions are carried out without the motivation

of money.

They provide service to society.

For example, the web site of any college which providesdetails about the courses offered by them and also it showsthe various syllabus and facilities which is available in theircollege.



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TO TRANSACTION

Intra Business Commerce

Here the transactions are taking place between thedepartments of the same organisations.

They can share the information within the organization

For example, A company can have various divisions andthese divisions are located in various cities then they canshare the information through intranet.


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INTERDISCIPLINARY NATURE OF E-COMMERCE

It Contains ten disciplines they are

Marketing : Whether the transaction is online or offlinethe advertisement is necessary. By viewing theadvertisement more customers gather the information andthey go for buying the product.

Computer Science : The language and the communicationproducts has to be upgraded frequently.

Customer and Seller Behaviour : Customer behaviour is thekey to the success of B2C trade Behaviour of seller is alsotaken care.

Finance : The Financial market and banks are having moreparticipation in E-commerce.


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Econimics : E-commerce is influenced by economic forceand have a major impact on world and country economy.

Management Information System : The information System

department covers the system analysis, system integration,planning, implementation, security and payment system.

Accounting and Auditing : Online auditing is a challengeprocess. It reduce the paper based work and speed up theauditing process, so that the cost benefit justification can be

done easily.

Management : It is needed by the managementto have thecontrol over the customer, seller and financial people.


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Business Law : The rules and regulation has to be strictlyfollowed by a business people in global market.

Others :Robotics,sensor networks,management

science,public policy and administration these are the otherareas where E-commerce can be dominated.

BENEFITS OF E COMMERCE


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BENEFITS OF E-COMMERCE

BENEFITS TO ORGANISATION :

The business transaction can be expanded from nationalto international level. Company can locate more customers, best sellers andsuitable business partners.

EC decreases the cost of creating, processing,distributing, storing and retrieving paper basedinformation. Ability to create a specialized business. Eg:www.dogstoys.com

Just In Time (JIT)[reduce the delay of transmissionbecause there is a direct connection between the customerand manufacturer/seller and manufacturer] EC allows reducing inventories. Pull type Supply chain management.

http://www.dogstoys.com/http://www.dogstoys.com/http://www.dogstoys.com/http://www.dogstoys.com/http://www.dogstoys.com/http://www.dogstoys.com/


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Customer

Manufacturer

Seller(Dealer)



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EC reduces the time between outlay of capital andreceipt of product and services. EC initiates business process to Re-engineering theproject.

EC reduces the cost of communication because theInternet accessing cost is very cheaper. Others are improved images, improved customerservices and new found of business partners, simplifiedprocess, compressed cycle and delivery time, Increased

productivity, eliminating paper, expediating access to theinternet, reduced transportation cost and increasedflexibility.



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BENEFITS TO CUSTOMERS :

Since because of online transaction the customer can logon at anytime. More number of choices are there for customers. EC provides less cost for product because of the

competition among sellers. EC provides the opportunity to compare prices beforepurchasing a product. Quick delivery of product is possible. The information about the product is also received in

fast manner compared with paper transaction. EC allows for virtual options. Sharing of information between the customer is alsopossible.



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BENEFITS TO SOCIETY :

The people sitting in their home can make a transactionand because of this there is no traffic in the market andit reduces air pollution.

The competition between sellers makes people to buy aluxurious item in discounts.

EC can provide services to the village people.

EC provides different type of public services like healthcare, online education and social awareness etc.,

LIMITATIONS OF E-COMMERCE


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It is classified into two types

o Technical Limitations

o Non-technical Limitations



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TECHNICAL LIMITATIONS :

There is a lack of system security, reliability andcommunication protocol.

There is in sufficient telecommunication bandwidth. The software development tools are skill evolving and

changing rapidly. The integration of Internet and e-commerce software is

difficult because of rapid changes. Vendors may need special web server and other

infrastructure in addition to the network servers.

Some EC software might not fit with the hardware oroperating system or other components of customers.



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NON-TECHNICAL LIMITATIONS :

Cost and Specification:The cost of EC transaction is very high. Due to lack ofexperience there is a possibility of delay. He cannot saybecause of EC the profit is increased.

Security and Privacy:

It is important for the B2C commerce. The encryptiontechnique is to be adapted in such a way the third partycant able to access the information for that a very longkey has to be generated and processed because of longkey it takes more time to process data. The seller

cannot convince the customer for purchasing a product. Lack of trust and User Resistance:

Customers do not believe a unknown faceless, seller,paperless transaction and e-money transfer.

Switching between off-line and online transaction is

difficult.



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LIMITATIONS OF E COMMERCE

OTHER LIMITATIONS :

Some people want to touch the product before gettingthe product.

There may be a possibility of many unsolved issues.

EC software changed frequently but people expectstable system.

The evaluation of EC is not there.

EC breakdown the human relationship.

Accessibility of Internet is very high for some people.


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INTERNET

Enabling Tools


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INTRODUCTION

By the turn of the century, information, including access tothe Internet, will be the basis for personal, economic, andpolitical advancement.

The popular name for the Internet is the information

superhighway.

Whether you want to find the latest financial news, browsethrough library catalogs, exchange information withcolleagues, or join in a lively political debate, the Internet isthe tool

The Internet shrinks the world and brings information,expertise, and knowledge on nearly every subject imaginablestraight to your computer.


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INTERNETWORK

An internetwork is a collection of individual networks,

connected by intermediate networking devices, that functionsas a single large network.

Internetworking refers to the industry, products, and

procedures that meet the challenge of creating andadministering internetworks.

Below Figure illustrates some different kinds of networktechnologies that can be interconnected by routers and othernetworking devices to create an internetwork.


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ARCHITECTURE OF INTERNETWORK


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INTERNET

The Internet links are computer networks all over the worldso that users can share resources and communicate with eachother.

Some computers, have direct access to all the facilities on the

Internet such as the universities.

And other computers, eg privately-owned ones, have indirectlinks through a commercial service provider, who offers someor all of the Internet facilities.

In order to be connected to Internet, you must go throughservice suppliers. Many options are offered with monthly rates.Depending on the option chosen, access time may vary.

The Internet is what we call a metanetwork, that is, anetwork of networks that spans the globe.


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INTERNET

It's impossible to give an exact count of the number of

networks or users that comprise the Internet, but it is easily inthe thousands and millions respectively.

The Internet employs a set of standardized protocols which

allow for the sharing of resources among different kinds ofcomputers that communicate with each other on the network.

These standards, sometimes referred to as the InternetProtocol Suite, are the rules that developers adhere to whencreating new functions for the Internet.

The Internet is also what we call a distributed system; there isno central archives. Technically, no one runs the Internet.

Rather, the Internet is made up of thousands of smallernetworks.


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HISTORY OF INTERNETWORKING

The first networks were time-sharing networks that used

mainframes and attached terminals.

Such environments were implemented by both IBM's SystemsNetwork Architecture (SNA) and Digital's network architecture.

Local-area networks (LANs) evolved around the PCrevolution.

LANs enabled multiple users in a relatively small geographicalarea to exchange files and messages, as well as access shared

resources such as file servers and printers.


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Wide-area networks (WANs) interconnect LANs with

geographically dispersed users to create connectivity.

Some of the technologies used for connecting LANs includeT1, T3, ATM, ISDN, ADSL, Frame Relay, radio links, and others.

New methods of connecting dispersed LANs are appearingeveryday.

Today, high-speed LANs and switched internetworks arebecoming widely used, largely because they operate at veryhigh speeds and support such high-bandwidth applications as

multimedia and videoconferencing.


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Internetworking evolved as a solution to three keyproblems:

isolated LANs, duplication of resources, and a lack of network management.

Isolated LANs made electronic communication betweendifferent offices or departments impossible.

Duplication of resources meant that the same hardwareand software had to be supplied to each office or

department, as did separate support staff.

This lack of network management meant that nocentralized method of managing and troubleshootingnetworks existed


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DEVELOPMENT OF INTERNETWORKING

Internet was originally conceived by the Department ofDefense as a way to protect government communicationssystems in the event of a military strike.

The original network, dubbed ARPANet (for the Advanced

Research Projects Agency that developed it) evolved intoa communications channel among contractors, militarypersonnel, and university researchers who werecontributing to ARPA projects.

The network employed a set of standard protocols tocreate an effective way for these people to communicateand share data with each other.


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DEVELOPMENT OF INTERNETWORKING

ARPAnet's popularity continued to spread amongresearchers, and in the 1980's the National ScienceFoundation, whose NSFNet, linked several high speedcomputers, took charge of the what had come to beknown as the Internet.

In 1991, the U.S. High Performance Computing Act

established the NREN (National Research & EducationNetwork).

NREN's goal was to develop and maintain high-speednetworks for research and education, and to investigatecommercial uses for the Internet.

The rest, as they say, is history in the making. TheInternet has been improved through the developments ofsuch services as Gopher and the World Wide Web.

Even though the Internet is predominantly thought of as aresearch oriented network, it continues to grow as aninformational, creative, and commercial resource everyday and all over the world.

A SS G


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INTERNET ADDRESSING

Internetwork addresses identify devices separately or asmembers of a group.

Addressing schemes vary depending on the protocolfamily and the OSI layer.

Three types of internetwork addresses are commonlyused:

data link layer addresses, Media Access Control (MAC)addresses, and network layer addresses.

DATA LINK LAYER ADDRESS


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A data link layer address uniquely identifies each physicalnetwork connection of a network device.

Data-link addresses sometimes are referred to asphysicalor hardware addresses.

Data-link addresses usually exist within a flat addressspace and have a pre-established and typically fixedrelationship to a specific device.



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End systems generally have only one physical networkconnection and thus have only one data-link address.

Routers and other internetworking devices typically havemultiple physical network connections and therefore havemultiple data-link addresses.

Figure illustrates how each interface on a device isuniquely identified by a data-link address.

The following figure depict how a device can be identifiedusing the data link layer address



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MAC ADDRESSES


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MAC ADDRESSES

Media Access Control (MAC) addresses consist of a subsetof data link layer addresses.

MAC addresses identify network entities in LANs thatimplement the IEEE MAC addresses of the data link layer.

As with most data-link addresses, MAC addresses are

unique for each LAN interface. The figure illustrates therelationship between MAC addresses, data-link addresses,and the IEEE sublayers of the data link layer.

MAC ADDRESSES


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MAC ADDRESSES

MAC ADDRESSES


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MAC ADDRESSES

MAC addresses are 48 bits in length and are expressed as12 hexadecimal digits.

The first 6 hexadecimal digits, which are administered bythe IEEE, identify the manufacturer or vendor and thuscomprise the Organizationally Unique Identifier (OUI).

The last 6 hexadecimal digits comprise the interface serialnumber, or another value administered by the specificvendor.

MAC addresses sometimes are called burned-in addresses(BIAs) because they are burned into read-only memory

(ROM) and are copied into random-access memory (RAM)when the interface card initializes.

The following Figure illustrates the MAC address format.

MAC ADDRESSES


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MAC ADDRESSES

MAPPING ADDRESSES


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MAPPING ADDRESSES

Because internetworks generally use network addressesto route traffic around the network, there is a need to mapnetwork addresses to MAC addresses.

When the network layer has determined the destination

station's network address, it must forward theinformation over a physical network using a MAC address.

Different protocol suites use different methods to performthis mapping, but the most popular is Address ResolutionProtocol (ARP).

MAPPING ADDRESSES


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MAPPING ADDRESSES

Different protocol suites use different methods fordetermining the MAC address of a device.

The following three methods are used most often. AddressResolution Protocol (ARP) maps network addresses to

MAC addresses.

The Hello protocol enables network devices to learn theMAC addresses of other network devices.

MAC addresses either are embedded in the network layer

address or are generated by an algorithm.

MAPPING ADDRESSES


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MAPPING ADDRESSES

Address Resolution Protocol (ARP) is the method used in

the TCP/IP suite. When a network device needs to senddata to another device on the same network, it knows thesource and destination network addresses for the datatransfer.

It must somehow map the destination address to a MACaddress before forwarding the data.

First, the sending station will check its ARP table to see ifit has already discovered this destination station's MACaddress. If it has not, it will send a broadcast on thenetwork with the destination station's IP addresscontained in the broadcast.

Every station on the network receives the broadcast and

compares the embedded IP address to its own. Only thestation with the matching IP address replies to thesending station with a packet containing the MAC addressfor the station.

The first station then adds this information to its ARPtable for future reference and proceeds to transfer thedata.

MAPPING ADDRESSES


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MAPPING ADDRESSES

When the destination device lies on a remote network,

one beyond a router, the process is the same except thatthe sending station sends the ARP request for the MACaddress of its default gateway.

It then forwards the information to that device.

The default gateway will then forward the informationover whatever networks necessary to deliver the packetto the network on which the destination device resides.

The router on the destination device's network then usesARP to obtain the MAC of the actual destination device and

delivers the packet.

MAPPING ADDRESSES


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MAPPING ADDRESSES

The Hello protocol is a network layer protocol that enables

network devices to identify one another and indicate thatthey are still functional.

When a new end system powers up, for example, itbroadcasts hello messages onto the network.

Devices on the network then return hello replies, andhello messages are also sent at specific intervals toindicate that they are still functional.

Network devices can learn the MAC addresses of otherdevices by examining Hello protocol packets.

MAPPING ADDRESSES


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MAPPING ADDRESSES

Three protocols use predictable MAC addresses.

In these protocol suites, MAC addresses arepredictable because the network layer either embeds theMAC address in the network layer address or uses analgorithm to determine the MAC address.

The three protocols are

Xerox Network Systems (XNS), Novell Internetwork Packet Exchange (IPX), DECnet Phase IV.

NETWORK LAYER ADDRESSES


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A network layer address identifies an entity at the

network layer of the OSI layers. Network addresses usually exist within a hierarchical

address space and sometimes are called virtual orlogical addresses.

The relationship between a network address and adevice is logical and unfixed; it typically is based

either on physical network characteristics End systems require one network layer address for

each network layer protocol that they support. Routers and other internetworking devices require

one network layer address per physical networkconnection for each network layer protocol

supported. For example, a router with three interfaces each

running AppleTalk, TCP/IP, and OSI must have threenetwork layer addresses for each interface.



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The router therefore has nine network layer

addresses.

Figure illustrates how each network interfacemust be assigned a network address for eachprotocol supported.

Each Network Interface Must Be Assigned aNetwork Address for Each Protocol Supported.



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WHO PAYS FOR THE INTERNET?


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WHO PAYS FOR THE INTERNET?

There is no clear answer to this question because the

Internet is not one "thing", it's many things.

No one central agency exists that charges individualInternet users. Rather, individuals and institutionswho use the Internet pay a local or regional Internetservice provider for their share of services.

And in turn, those smaller Internet service providersmight purchase services from an even larger network.

So basically, everyone who uses the Internet in someway pays for part of it.

CLIENT / SERVER MODEL


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The most popular Internet tools operate as

client/server systems. You're running a program called a Web client. This

piece of software displays documents for you andcarries out your requests.

If it becomes necessary to connect to another type ofservice--say, to set up a Telnet session, or to

download a file--your Web client will take care of this,too.

Your Web client connects (or "talks") to a Web serverto ask for information on your behalf.

The Web server is a computer running another type ofWeb software which provides data, or "serves up" an

information resource to your Web client.



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All of the basic Internet tools--including Telnet, FTP,

Gopher, and the World Wide Web--are based upon thecooperation of a client and one or more servers.

In each case, you interact with the client program andit manages the details of how data is presented to youor the way in which you can look for resources.

In turn, the client interacts with one or more servers

where the information resides. The server receives a request, processes it, and sends

a result, without having to know the details of yourcomputer system, because the client software on yourcomputer system is handling those details.

The advantage of the client/server model lies in

distributing the work so that each tool can focus orspecialize on particular tasks:

The server serves information to many users while theclient software for each user handles the individualuser's interface and other details of the requests andresults.

READING AN IP ADDRESS


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To use Internet e-mail successfully, you must

understand how the names and addresses for computersand people on the Internet are formatted.

Mastering this technique is just as important asknowing how to use telephone numbers or postaladdresses correctly.

Fortunately, after you get the hang of them, Internetaddresses are usually no more complex than phonenumbers and postal addresses.

And, like those methods of identifying a person, an

organization, or a geographic location--usually by atelephone number or a street address--Internet addresseshave rules and conventions for use.



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To use Internet e-mail successfully, you must

understand how the names and addresses for computersand people on the Internet are formatted.

Mastering this technique is just as important asknowing how to use telephone numbers or postaladdresses correctly.

Fortunately, after you get the hang of them, Internetaddresses are usually no more complex than phonenumbers and postal addresses.

And, like those methods of identifying a person, an

organization, or a geographic location--usually by atelephone number or a street address--Internet addresseshave rules and conventions for use.

Enabling Tools


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INTRANET

Enabling Tools

WHAT IS INTRANET?


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WHAT IS INTRANET?

Intranet is a private network. It shares the information

between some organization. i.e. An intranet is a corporate LANor wide area network that uses Internet technology and issecured behind companys firewalls(a kind of access controlserver).

The intranet links various servers,clients,databases and

application programs like Enterprise Resource Planning(ERP).

Although intranets are developed on the same TCP/IP

protocol as the Internet, they operate as a private network

with limited access.

Only authorized employees are able to use it.

INTRANET


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INTRANET

The firewalls protect the intranets from unauthorized

outside access.

The intranet can be used to enhance the communication

and collaboration among authorized

employees,customers,suppliers, and other businesspartners.

Since the intranet allows access through the internet , itdoes not require any additional implementation of leasednetworks. This open and flexible connectivity is a major

capability and advantage of intranets.

Intranets provide the infrastructure for many intrabusiness

commerce applications.

ARCHITECTURE OF INTRANET


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ARCHITECTURE OF INTRANET

Public/External

Internet Users

Product

Database

IntranetFirewalls

Client Server

Email Legacy

Server

Web server

INTRANET SOFTWARE


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INTRANET SOFTWARE

To build an intranet,we need Web servers,Browsers,Web

publishing tools,backend databases,TCP/IP networks(LANor WAN) and firewalls.

A firewall is software and/or hardware that allows only

those external users with specific characteristics to accessa protected network.

Additional software may be necessary to support the web-based workflow ,groupware, Enterprise ResourcePlanning(ERP),depending upon the individual companys

need.

APPLICATIONS OF INTRANET


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Corporate/department/individual Web pages

Database access: Web-based database

Search engines and directories: assist keyword-

based search Interactive communication: chatting,audio and video

conferences Document distribution and workflow: Web-based download

and routing of documents. Groupware: fancy e-mail and bulletin board.



83/100

Telephony: intranets are the perfect conduit for computer-

based telephony. Integration with EC: interface with Internet-based

electronic sales and purchasing. Extranet :linking geographically dispersed

branches,customers,and suppliers to authorized sections ofintranets creates happier customers,more efficientsuppliers and reduced staff costs.

INTRANET APPLICATION AREAS


84/100

Electronic commerce: Sales and purchasing can be done

online. Customer service: UPS,FedEx, and other pioneering

companies have proved that information about productshipments and availability make customers happier.

Reduced time to market: Easy online access for product

development speeds teamwork. Enhanced knowledge sharing: Web pages can enhance

knowledge sharing. Enhanced group decision and business process: Web-based

groupware and workflow is becoming the standard intranetplatform.



85/100

Empowerment: Everyting should be available to everyone withthe right to know. Virtual organizations: Web technology at both ends removesthe barrier of incompatible technology between businesses.

Softtware distribution: Use the intranet server as theapplication warehouse and avoid many maintenance and supportproblems. Document management: Employers can access

pictures,photos,charts,maps, and other documents regardless of

where they are stored.



86/100

Project management: Share the reports and check the

projects progress. Training: The Web page is a valuable source of providing

knowledge to novices. Facilitate transaction processing: The data are enteredefficiently through the intranet Web only once, and internalcontrol can be applied consistently throughout the system.

Eliminate paper-based information delivery: Eliminating thepaper in a firm can result in lower cost,easier accessibility,and greater efficiency.

Industry specific INTRANET solutions


87/100

y p

Intranet solutions are frequently classified by industry insteadof technology, because the technology is no longer a bottleneckfor implementation.

The intranet and extranet solutions can be classified by industryas follows: Financial services: banking,brokerages and other financialservices,insurance. Information technology Manufacturing: chemicals and oil,consumer goods,food and

beverage,general manufacturing and pharmaceuticals.Retail

construction/engineering,education,environmental,healthcare,media,entertainment,telecommunications,transportation andutilities.

Enabling Tools


88/100

EXTRANET

g

WHAT IS EXTRANET?


89/100

An extranet or extendedintranet, uses the TCP/IP

protocol networks of the internet, to link intranets indifferent locations.

Extranet transmission are usually conducted over theInternet, which offers little privacy or transmissionsecurity.

Therefore, when using an extranet , it is necessary toimprove the security of the connecting portions of theInternet.

This is done by creating tunnels of secured data flows,using cryptography and authorization algorithms.

The Internet with tunneling technology is known asVirtually private network(VPN).

ARCHITECTURE OF EXTRANET


90/100

FireWalls

Fire

Walls

Tunneling

Internet

Extranet

intranet

intranet

Suppliers

Distributors

Customers

EXTRANET


91/100

Extranets provide secured connectivity between acorporations intranets and the intranets of its businesspartners ,materials suppliers,financial services,government,and customers. Access to intranets is strictly controlled and it is onlyavailable to authorized personnel. The protected environment of the extranet allows group tocollaborate,sharing information and exchanging itsecurely. Since an extranet allows connectivity between businessesthrough the internet,it is an open and flexible platform

suitable for supply chain management. To increase security,many companies replicate thedatabases and separate them physically from their regularintranets. The separated data need to be protected.This protection isprovided by special architecture

BASIC CONCEPTS OF EXTRANET


92/100

The extended intranet connects multiple intranets

through a secured tunneling Internet.

Extranets combine the privacy and security of intranetswith the global reach of the Internet,granting access to

outside business partners,suppliers and customers to acontrolled portion of the enterprise network.

Extranets are becoming the major platforms for B2B EC.

They provide the flexibility of serving internal andexternal users.

EXTRANET


93/100

SUPPLIERSintranet

Business

Client intranet

Consumers

Remote Employees

Business Partner

Intranet

Distributors

intranets

InternetEnterprise

intranetVPN

VPN VPN

VPN

VPN

ELEMENTS OF EXTRANET


94/100

Extranets are comprised of a wide variety of componentsand several possible configurations.

These include intranets,Web

servers,firewalls,ISPs,tunneling technology,interface softwareand business applications.

The tunneling principle is the basic concept that makes the

extranet possible. Tunneling means that data transmissions across the

Internet can be made secure by authenticating and encrypting

all IP packets. Several tunneling protocols are available,but IP Security

proposed by IETF(Internet Engineering Task Force) is one ofthe more popular protocols.

Configuration of EXTRANET


95/100

1. They can be implemented using a direct leased line with fullcontrol over it,linking all intranets.2. A secure link(tunnel) can be created across the Internet,which can be used by the corporation as a VPN.

The Effectiveness of an extranet depends on the degreeto which it is Integrated with the legacy systems anddatabases.

Integrating with legacy systems involves integrating a

System Network Architecture-the backbone of legacy

systems in many corporations-with TCP/IP, the webbackbone.

EXTRANET CATEGORIES AND SERVICES


96/100

1. Extranet development tools: provide the means andfacilities to design extranet servers,a client-base,security,ECapplications and electronic catalogs.

2. Extranet hosting and network connectivity: providesecure ISP connections to Internet backbones and hostextranet services for corporations.

3. Extranet services: provide extranet design expertise withtools or services for building and operating extranet-basedservices for corporate clients.

4. Virtual private networks: provide components specificallydesigned for connecting remote operators and creating IPWANs for corporations.

EXTRANET TOOLS AND SERVICE PROVIDERS


97/100

The extranet development tools include a range of productsfrom simple EC software to sophisticated catalog servers that

combine software and hardware product.

There are four types of extranet service providers:

1. Consultants: who develop extranet networks for clients.

2. Developers: who are using generally available developmenttools or products.

3. System Integration firms: that provide turnkey

solutions,including design,development,ISP connectivity etc.

4. Internet Service Providers: who already operate the

Internet backbones.

EXTRANET BENEFITS


98/100

1. Enhanced Communications

Improved internal communications Improved business partnership channels Effective marketing,sales, and customer

support Collaborative activities support2. Productivity enhancements Just-in-time information delivery Reduction of information overload Productive collaboration between work groups

3. Business enhancements Faster time to market

Lower design and production costs Improved client relationships New business opportunities

EXTRANET BENEFITS


99/100

4. Cost reduction Reduced travel and meetings Reduced operational costs Elimination of paper publishing costs

5.Information delivery Standard delivery systems Ease of maintenance and

implementation Elimination of paper publishing andmailing costs.

Disadvantages of EXTRANET


100/100

1. Extranets can be expensive to implement and maintainedwithin an organization.2. Security of extranets can be a big concern when dealingwith valuable information. 3. System access needs to be carefully controlled.4. Extranets can reduce personal contact(face to face meetings)with customers and business partners.This could cause alack of connections made between people and a company.

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