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Slide 3.1
CHAPTER 3
E-BUSINESS INFRASTRUCTURE
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.2
Learning outcomes


Outline the hardware and software technologies used
to build an e-business infrastructure within an
organisation and with its partners
Outline the hardware and software requirements
necessary to enable employee access to the Internet
and hosting of
e-commerce services.
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.3
E-business infrastructure

The architecture of hardware, software. Content and
data used to deliver e-business services to
employees, customers and partners
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.4
Typical problems
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

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

Web site communications too slow.
Web site not available.
Bugs on site through pages being unavailable or
information typed in forms not being executed.
Ordered products not delivered on time.
E-mails not replied to.
Customers’ privacy or trust is broken through security
problems such as credit cards being stolen or
addresses sold to other companies.
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Figure 3.1
A five-layer model of e-business infrastructure
Table 3.1
Key management issues of e-business infrastructure
Table 3.1
Key management issues of e-business infrastructure (Continued)
Slide 3.8
What is the Internet?
“The Internet, sometimes called simply "the Net," is a worldwide system of computer
networks - a network of networks in which users at any one computer can, if they
have permission, get information from any other computer”
-whatis.com
“A global network connecting millions of computers. More than 100 countries are linked
into exchanges of data, news and opinions.
-webopedia.com
“is logically linked together by a globally unique address space based on the Internet
Protocol (IP) or its subsequent extensions/follow-ons”
-FNC
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Physical and network infrastructure components of the Internet
(Levels IV and III in Figure 3.1)
Figure 3.2
Slide 3.10
London Internet Exchange
•Located in Docklands area in East London
•Second large IX in Europe
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.11
Malaysia and Internet


Internet Usage Statistics:
13,528,200 Internet users as of Sept/2006, 47.8% of the
population, according to M.C.M.C.
Malaysia Internet Exchange (MyIX)



Established in November, 2003
Launched on 15th December 2006
3 nodes connected in AIMS, NCC and TPM Jaring
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Table 3.2
Six stages of advances in the dissemination of information
Slide 3.13
Clay tablets
Guternberg Press
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Figure 3.3
A five-layer model of e-business infrastructure
Slide 3.15
How big is the Internet?


Over 1 billion Internet users worldwide
How big the infrastructure they accessing?
 Measured
by number of servers
 Number of pages indexed by search engines
 2006: 9 billion pages
 Dec 2007:????
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Figure 3.4
The Netcraft index of number of servers
Source: Netcraft Web Server Survey. http://news.netcraft.com/archives/web server survey.html. Netcraft, http://netcraft.com
Slide 3.17
Intranet and extranet

Intranet:
A
private network within a single company using
Internet standards to enable employees to share
information

Extranet:
 Formed
by extending an intranet beyond a company to
customers, suppliers and collaborators
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Figure 3.5
The relationship between intranets, extranets and the Internet
Slide 3.19
Intranet applications


Used extensively for supporting sell-side ecommerce
Also used for internal marketing communications
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.20
Extranet applications

Used to provide online services which are restricted
to business customers
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.21
Business benefits of extranet




Information sharing
Cost reduction
Order processing and distribution
Customer service
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.22
Premier Dell.com
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.23
Questions on extranet?



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
Are the levels of usage sufficient?
Is it effective and efficient?
Who has ownership of the extranet?
What are the levels of service quality?
Is the quality of information adequate?
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.24
Use of extranet on global basis
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.25
Firewalls


A specialized software mounted on a separate
server at the point where the company is connected
to the Internet
Use to protect information on the company
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Firewall positions within the e-business infrastructure of the
B2B company
Figure 3.6
Figure 3.7
Information exchange between a web browser and web server
Slide 3.28
What is the Internet?



World Wide Web – standard method for
exchanging information on the Internet
Web browsers – a method of accessing and viewing
information stored as web documents
Web servers – store and present the web pages
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.29
World Wide Web

Based on standard document formats such as HTML
 Offers
hyperlink
 Supports a wide range of formatting
 Can integrate graphics and animations
 Make interactions possible
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.30
Web 2.0



It isn’t a new web standard
Just an evolution of technologies and communication
approaches
Some main characteristics:
 Web
services or interactive applications hosted on the
Web
 Ad funding of neutral sites
 Encouraging creation of user-generated content
 Enabling rating of content
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.31
del.icio.us
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.32
Internet tools

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E-mail
Instant messaging (IM) and Internet Relay Chat (IRC)
Usenet newsgroups
FTP file transfer
Telnet
Blogs
RSS (Really Simple Syndication)
World Wide Web
IPTV
BitTorrent
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.33
Blogs
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.34
RSS



An Internet standard for publishing and exchanging
content using XML
Content can be published on a site that originates
from another site
New method of distributing messages to subscribers
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.35
RSS
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.36
RSS feeds
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.37
VOIP

Voice data is transferred across the Internet – it
enables phone calls to be made over the Internet
 Peer-to-peer
 Hosted
service
 Complete replacement of all telephone systems
 Upgrading telephone systems
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Figure 3.8
The TCP/IP protocol
Slide 3.39
URLS and domain names



Web addresses are structured in a standard way as follows:
http://www.domain-name.extension/filename.html
What do the following extensions or global top level domains stand for?

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.com
.co.uk, .uk.com
.org or .org.uk
.gov
.edu, .ac.uk
.int
.net
.biz
.info
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.40
HTML and XML



HTML (Hypertext Markup Language)
A standard format used to define the text and layout
of web pages. HTML files usually have the extension
.HTML or .HTM.
XML or eXtensible Markup Language
A standard for transferring structured data, unlike
HTML which is purely presentational.
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Home page index.html for The B2B Company in a web browser showing
HTML source in text editor
Figure 3.9
(a) Fragmented applications infrastructure, (b) integrated applications
infrastructure
Figure 3.10
Source: Adapted from Hasselbring (2000)
Slide 3.43
XML example
Product>
<Action Value5”Delete”/>
<ProductID>118003-008</ProductID>
</Product>
<Product Type5”Good” SchemaCategoryRef5”C43171801”>
<ProductID>140141-002</ProductID>
<UOM><UOMCoded>EA</UOMCoded></UOM>
<Manufacturer>Compaq</Manufacturer>
<LeadTime>2</LeadTime>
<CountryOfOrigin>
<Country><CountryCoded>US</CountryCoded></Country>
</CountryOfOrigin>
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.44
Media standards

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
GIF (Graphics Interchange Format) A graphics format and
compression algorithm best used for simple graphics
JPEG (Joint Photographics Experts Group) A graphics format
and compression algorithm best used for photographs
Streaming media. Sound and video that can be experienced
within a web browser before the whole clip is downloaded e.g.
Real Networks .rm format
Video standards include MPEG and .AVI
Sound standards include MP3 and WMA
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.45
Who controls the Internet?


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
ICANN
The Internet Society (www.isoc.org)
The Internet Engineering Task Force (IETF)
The World Wide Web Consortium (www.w3.org)
Telecommunications Information Networking
Architecture Consortium TINA-C
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.46
Managing e-business infrastructure

Layer II – Systems software
 Standardization

Layer III – Transport or network
 Based

throughout organization
on internal company network
Laver IV – Storage
 Based
on company needs
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.47
Internet service providers (ISP)





ISP connection method
Speed of access
Availability
Service-level agreements
Security
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Figure 3.11
Differing use of applications at levels of management within companies
Figure 3.12
Elements of e-business infrastructure that require management
Slide 3.50
New access devices





Mobile access devices
Wi-Fi mobile access
Bluetooth
Next-generation mobile services
Interactive digital television
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.51
Bluetooth
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Figure 3.13
Mobile access technologies
Figure 3.14
Components of an interactive digital TV system
Slide 3.54
Summary
1.
2.
The Internet is a global communications network that is used
to transmit the information published on the World Wide
Web (WWW) in a standard format based on Hypertext
Markup Language (HTML) using different standard protocols
such as HTTP and TCP/IP
Companies deliver e-business services to employees and
partners through web servers which are often hosted at thirdparty companies known as ‘Internet service providers’ (ISPs).
Web servers will be linked to applications servers, database
servers and legacy applications to deliver these services
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.55
Summary
3.
4.
Consumers and business users access these e-business services
using web browser software, with connections to the Internet
also managed by an ISP through which they can access web
servers
Intranets are private networks used inside companies to share
information. Internet-based tools such as e-mail, FTP, and the
World Wide Web are all used as methods of sharing this
information. Not all Internet users can access intranets since
access is restricted by firewalls and password controls.
Extranets are similar to intranets, but they are extended
beyond the company to third parties such as suppliers,
distributors or selected customers
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.56
Summary
5.
•
•
•
•
6.
Standards to enable delivery of information include:
Communications standards such as TCP/IP and HTTP
Text information standards such as HTML, XML, and WML
Graphical information standards such as GIF dan JPEG
Multimedia standards such as Shockwave, Flash and
streaming audio and video
Managing staff access to the Internet involves taking
decisions about the number of staff with access and how
much time can be permitted and the nature of monitoring
used for e-mails and web pages
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.57
Summary
7.
8.
Managers need to decide on internal or external
management of the technology and applications
infrastructure of an organization
Electronic data interchange (EDI) involves the
structured transfer of information, particularly for
online B2B purchasing transactions. It can now
occur over the Internet as Internet EDI
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 3.58
Summary
9.
10.
Applications service providers are increasingly important as
businesses look to reduce infrastructure costs and improve ebusiness service delivery through external hosting of
applications and data outside an organization
Managers of e-commerce services need to monitor the
adoption of new access devices for the Internet including
mobile phones and interactive digital TV. An e-commerce
infrastructure should be designed to readily enable new
access media to be supported as they develop
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007