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BBA 3331, Introduction to E -commerce 1 Cou rse Learning Outcomes for Unit III Upon completion of this unit, students should be able to: 4. Explain the four infrastructures influencing e -commerce strategy. 4.1 Discuss the origins and key technologies behind the Internet. 6. Examine the combination of variables that make up a site's architecture. 6.1 Explain the structure of the Internet. Course/Unit Learning Outcomes Learning Activity 4.1 Unit Lesson Chapter 3 Unit III PowerPoint Presentation 6.1 Unit Lesson Chapter 3 Unit III PowerPoint Presentation Reading Assignment Chapter 3: E-commerce Infrastructure: The Internet, Web, and Mobile Platform Unit Lesson This unit’s lesson provides a wide overview of the Internet’s infrastructure. The unit begins with networking and the Internet, and it also covers networking protocols, introduces key communication terms, and outlines the links and switches that make data transport to and from the Internet possible. Internet Infrastructure E-commerce entrepreneurs need to have a good understanding of the infrastructure needed to run and sustain their business models and organizational strategies. Entrepreneurs must be cognizant of the infrastructure needed to sustain their businesses and how the Internet operates to adjust to the demands of the e -commerce markets, but what is the Internet composed of? The Internet is a complex set of public and private networks. The In ternet includes hardware and software components as well as services. The nuts and bolts of the Internet are comprised of distributed networks that are connected to each other and offer applications and services. In other words, the public Internet is a se t of millions of worldwide computer networks interconnected to one another (Laudon & Traver, 2018). The figure below depicts a company’s network connected to an Internet service provider (ISP). All devices in the Internet infrastructure are referred to as hosts or nodes. Internet applications are services (e.g., e -mail) running in hosts. Examples of programs running in hosts include websites and payment systems, which make e - commerce possible. UNIT III STUDY GUIDE E-commerce Infrastructure BBA 3331, Introduction to E -commerce 2 UNIT x STUDY GUIDE Title These hosts or nodes use protocols to communicate with each other. These protocols control the flow and the sending and receiving of information across the Internet. According to Stallings (1999), the Transmission Control Protocol (TCP) and Internet Protoc ol (IP) are the central protocols used for communication within the Internet. These protocols are jointly referred to as TCP/IP. Hosts or nodes, such as web servers or personal computers (PCs), connect together in a local area network (LAN), which, in turn , connects to a local or regional ISP (see Figure 1). These communication links used by hosts and routers in a LAN and their connectivity to ISPs consist of different types of media, which could include copper wire, coaxial cable, fiber optics, and radio s pectrum. The different types of media transmit information at different rates depending on the media type; this transmission rate is referred to as bandwidth, and it is measured in bits per second (bps). New entrepreneurs must be acquainted with the type of media and bandwidth needed in their infrastructures to run their businesses. Entrepreneurs base the factors driving this decision on the service or value proposition element of the company’s business model. As an example, if the new enterprise will off er hosting services, it will need a fast and reliable connection to their ISP to sustain the demands of the new service(s). Core concepts (Laudon & Traver, 2018) The structure of the Internet is loosely hierarchical, which means that nodes or hosts connect to ISPs through their corresponding LAN connections. Local ISPs then connect to regional ISPs, which may connect to national ISPs or international ISPs. The top -level hierarchy is composed of both national and international ISPs, which are also known as Tier 1 providers. Examples of Tier 1 providers are AT&T, Sprint, Verizon, and the Zayo Group (Laudon & Traver, 2018). When you connect to the Internet, your devi ce (e.g., PC, laptop, tablet, smartphone) becomes a part of a local or wide area network (WAN). Your ISP then provides a connection to its network. In turn, the ISP connects to a national network or Internet backbone. In this manner, devices become a part of the larger Internet. Figure 2 depicts this process. CORE CONCEPTS The Internet is composed of millions of connected devices, including PCs, workstations, servers, and smartphones , which are communicating using protocols (e.g., TCP, IP, FTP, HTTP, PPP) over fiber, copper, coax, radio, and satellite communication links (Laudon & Traver, 201 8). Figure 1: A company’s network connected to the Internet BBA 3331, Introduction to E -commerce 3 UNIT x STUDY GUIDE Title Internet Standards Industry standards seek to establish and describe sets of best practices for a particular industry (i.e., communication protocols). Standards create and outline practices, safeguards, and policies of a particular activity or system. Generally, the goal of industry standards is to follow levels of consistency across the board.

As an example, RFC 5321 provides best practices for the use of Simple Mail Transfer Protocol (SMTP) extension mechanisms (Klensin, 2008). Stallings (1999) described that the Internet maintains its stability and consistency because it adheres to Internet standards. The Internet Engineering Task Force ( IETF) develops and publishes these standards. According to Laudon and Traver (2018), the IETF “is an open international community of network operators, vendors, and researchers concerned with the evolution of the Internet architecture and operation of the Internet” (p. 139). The IETF calls these standards Requests for Comments (RFCs). These standard documents seek to solve some of the foundational elements of the Internet. RFCs are quite technical in nature and define web protocols such as TCP, IP, and SMTP . Anyone can submit a draft for an RFC to the RFC editor. The RFC undergoes extensive vetting for technical competence, relevance, and proper writing before considering the possibility for publishing. Standards are vital, as they do not follow any govern mental or legal mandate. Standards are adopted based on the market environment as well as compliance requirements, competitiveness, and industry certification needs. Lewis (2015) articulated that standards are authored with a framework or blueprint but are implemented at the discretion of the industry. Standards are critical to e -commerce since e -commerce relies on information and technology that adheres to particular standards. As an example, e -commerce uses network communication protocols, application int egration, and specific functionalities and features. The three specific elements —information, communication infrastructure, and applications —are brought together to create a unique customer experience, which contributes to brand preference and customer loy alty. The Internet and Services As mentioned in Unit I, the Internet is not the same as the web. The World Wide Web is composed of distributed applications, such as websites, multimedia, e -mail, and interactive sites, running in host systems, which are i nterconnected in the Internet infrastructure. Thus, the web is not a network but a group of applications using the communication services provided by the Internet. The web could be run on a LAN without the Internet. Laudon and Traver (2018) articulated tha t intranets are local networks within a single organization, and intranets use the same technology that the Internet employs. The Internet is evolving at a fast pace. As it evolves, it also experiences significant limitations in its infrastructure. The l imitations are imposed by outdated infrastructure and the growth of the Internet. It is challenging to keep up reconstruction or updating of technology with the rapid development of the global network. Various elements are significant to the architecture o f the Internet. Laudon and Traver (2018) Figure 2: What happens when you connect to the Internet ? BBA 3331, Introduction to E -commerce 4 UNIT x STUDY GUIDE Title outlined four major areas that present challenges to the continued evolution of the Internet, which are listed below. 1. Bandwidth limitations : As new Internet applications and services emerge, which may require higher speeds, more bandwidth is needed. Internet carriers need to be prepared to offer additional bandwidth as the demand will only increase as more services are switching to the Intern et. ISPs need to be ready to sustain new customers by renovating and/or keeping up their infrastructures to avoid future bandwidth limitations that may affect their e -commerce customers. 2. Quality of service : This area is tightly coupled with availability o f bandwidth. Quality of service refers to the capability of ISPs to provide better quality of service or performance to specific traffic on the network. As an example, voice and video require a high priority, as they are sensitive to delays; no one enjoys irregular conversations where words or images are mixed up or delayed. 3. Network architecture : This refers to the physical connectivity of the networks comprising the Internet. As noted in previous paragraphs, the limitations are often introduced by the grow th of the Internet as new applications and services require more bandwidth. However, the limitations of the architecture are more evident at the last mile (i.e., the equipment or hardware needed at the customer’s side for sufficient bandwidth to travel to the end user’s home). 4. Wired Internet : Most end users are still connecting to the Internet using a wired connection. W ireless technologies have not evolved as fast as the Internet. Mobile networks cannot keep up with the technologies of smart devices; this is evident by the way mobile providers limit bandwidth usage for their subscribers. Conclusion E-commerce entrepreneurs must be aware of the challenges present in the current infrastructure of the Internet. In building their infrastructure strategies, e -businesses need to formulate ways to address their customer expectations for Internet connectivity. Organizations must have a strategic plan to compensate for the limitations present in the Internet’s network architecture. As the Internet keeps evolving, new applications and services will emerge that will require more bandwidth and network capabilities for e -commerce business and customers. It is critical to carefully build and plan for an infrastructure capable of delivering a successful customer experien ce. Definitions Please review the common definitions related to the Internet below. If you would like to check your knowledge of the definitions, try the matching activity, which is available in the nongraded learning activity.  Bandwidth : This is the rate of transfer or throughput that a network line can handle at a given time.  Bps : Bits per second refers to transfer speed. For example, if a speed is identified as 10 Mbps, it means that, given no interruptions, the rate is at 10 Megabits per second.  LAN : Local area network is a set of computing devices connected to the same physical network.  TCP/IP : Transmission Control Protocol/Internet Protocol are protocols that govern the connection of computer systems (Stallings, 1999).  SMTP : Simple Mail Transfer Protocol is a data transmission protocol used to send and receive e -mail (Stallings, 1999).  HTTP : Hypertext Transfer Protocol is the communication protocol used to view web pages (Stallings, 1999).  FTP : File Transfer Protocol is a communications protocol for the exchange of data files in networks (Stallings, 1999).  PPP : Point -to-Point Protocol is a communications protocol used to establish direct connections between two computing devices (Stallings, 1999). References Klensin, J. (2008). Simple mail tr ansfer protocol (RFC 5321). Retrieved from https://tools.ietf.org/html/rfc5321 Laudon, K. C., & Traver, C. G. (2018). E-Commerce 2017: Business, technology, society (13th ed.). Boston, MA: Pearson Education. BBA 3331, Introduction to E -commerce 5 UNIT x STUDY GUIDE Title Lewis, T. G. (2015). Critical infrastructure protection in homeland security: Defending a networked nation (2nd ed.). Hoboken, NJ: Wiley. Stallings, W. (1999). Data and computer communications (6th ed.). Upper Saddle River, N.J.: Prentice Hall. Learning Activities (Nong raded) Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions, contact your instructor for further guidance and information. For a review of definitions related to the Internet, try the matching activity that can be accessed by clicking here .