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ELC 200 Day 6 ELECTRONIC COMMERCE From Vision to Fulfillment Third Edition Elias M. Awad © 2007 Prentice-Hall, Inc 1-1 Agenda • Questions?? • Assignment 1 not corrected – I will have it done tomorrow! • Assignment 2 is posted – Due February 17th • Quiz 1 on Friday the 13th – Chap 1 & 2 from text – 50 min time limit, – 20 M/C @ 4 points each – 4 short essays @ 5 points each – 1 extra credit @ five points on History of Web browsers • Finish Discussion on Internet Architecture • Begin Discussion and Intranets and extranets © 2007 Prentice-Hall, Inc 1-2 Internet Architecture ELECTRONIC COMMERCE From Vision to Fulfillment Third Edition Elias M. Awad © 2007 Prentice-Hall, Inc 1-3 Satellite Internet Orbits GEO Satellite System 2. Point-to-Point Uplink 1. Geosynchronous Satellite 3. Broadcast Downlink 5. Earth Station A 4. Footprint Earth Station B Satellite appears stationary in sky (35,785 km or 22,236 mi) Far, so earth station needs dish antenna At speed of light takes 250 ms to travel distance Wireless Technology • Data communication without physical attachments • Three types of wireless data transmission technology: – Microwave transmission is used to connect LANs in separate buildings that must be within the line of sight of each other – Radio technology by radio frequency with no distance limitations – Infrared transmission operates at frequencies approaching the speed of light © 2007 Prentice-Hall, Inc 1-7 Network Components • Network Interface Card – A card installed in a slot in the PC to allow communication between the PC and other PCs in the LAN and beyond – To communicate over a telephone line the PC needs a modem, a device that converts digital signals into analog format for outgoing transmission and converts incoming messages from analog to digital format for computer processing • Hubs and Switches – Hub is a piece of hardware that operates at the OSI physical layer and acts as a connecting point – Switch is a piece of hardware that offers a direct connection to a particular PC © 2007 Prentice-Hall, Inc 1-8 Network Components (cont'd) • Routers – A piece of hardware that operates at the OSI Internet layer, linking the network into little chunks called network segments – Usually “intelligent” and evaluate the network traffic and can stop local traffic from entering and causing congestion – Make intelligent path choices – Filter out packets that need not be received – Expensive and difficult to operate • Gateways – A special-purpose computer that allows communication between dissimilar systems on the network © 2007 Prentice-Hall, Inc 1-9 Network Design Considerations STEP 1: Factors to Keep in Mind • Location - Where will the network be installed? • Capacity - What is the optimum traffic capacity of the network? • Distance Limitations - What is the distance of the farthest PC to the server? • Cost - What is the estimated cost of the proposed network installation? • Potential Growth - How easily and how well can the network be scaled to meet growing demands? • Security - How secure is the proposed network? © 2007 Prentice-Hall, Inc 1-10 Network Design Considerations STEP 2: Hardware and Software Considerations • Hardware Requirements • Software Requirements • Disaster Recovery and Fault-Tolerance Requirements © 2007 Prentice-Hall, Inc 1-11 Network Design Considerations SUCCESSFUL INSTALLATION • Conduct a survey of current technology and constraints • Document network requirements • Decide on the network operating systems • Decide on the file server hardware platform • Determine the physical environment and client support © 2007 Prentice-Hall, Inc 1-12 Managerial Factors • Network management tasks: – Maintain an acceptable level of system availability – Assure good response time – Run the network at optimal capacity – Route voice and data traffic around the clock – Enable managers, employees, and customers to communicate effectively regardless of time, distance, or location © 2007 Prentice-Hall, Inc 1-13 Managerial Factors – (cont’d) • Key components of a typical network management system: – The manager - the network administrator manages the network via software loaded on a special workstation – Managed nodes - the manager monitors nodes or pieces of software call agents that communicate with the manager on behalf of the node – Objects - Ports on the managed node that the agent represents to the manager – Management Information Base (MIB) - software that defines the objects that can exist, based on the initial design of the database – Requests and Responses - uses SNMP to allow the manager and agents to work through pre-established cycles © 2007 Prentice-Hall, Inc 1-14 E-Commerce Issues • • • • • • • Financial Exposure IP Exposure Legal Security Packet Sniffing Firewalls IPSec Intrusion Detection Systems (IDS) © 2007 Prentice-Hall, Inc 1-15 Management Implications • • High demand for Technical talent – Project Management – Business Knowledge – Communication Skills – High Salaries Retaining Talent – Constructive & Timely Feedback – Recognition & Appreciation – Championing Staff Causes – Support Employee Career goals – Match Industry Standards for Salary © 2007 Prentice-Hall, Inc 1-16 Chapter Summary • A network is a connection between at least two computers for the purpose of sharing resources. • Internet host numbers are divided into two parts: the network part (first two numbers) and the local part (second two numbers). • Messages, invoicing, and other information transmission on the Internet are made possible by protocols, standards, and other software that transmits information via packets through a cable to its destination. • The OSI Reference Model is a seven-layer model that defines the basic network functions. • The standard for the transport layer is TCP, which is the most popular standard used on the Internet. © 2007 Prentice-Hall, Inc 1-17 Chapter Summary (cont'd) • To communicate over a line, you need a modem, which converts incoming analog signals into digital signals. • Several factors need to be considered in designing a network: location, capacity, distance limitations, cost, potential growth, and security. • Factors to be considered in selecting network architecture include: hardware requirements, software requirements, disaster recovery and fault-tolerance requirements, and corporate culture and organizational factors. • The main implication of networking for management is that firms need to have a work environment that technical people find conducive for long-term employment and one that promotes a career path for © 2007 Prentice-Hall, Inc 1-18 qualified employees. Intranets and Extranets ELECTRONIC COMMERCE From Vision to Fulfillment Third Edition Elias M. Awad © 2007 Prentice-Hall, Inc 1-19 The focus of this chapter is on several learning objectives • The concept, strategic significance, and technical infrastructure of intranets • How to plan for and install an intranet in the organization • The many issues, uses, and abuse of e-mail via a company’s intranet • A company’s extranet and how it links with its partners and vendors through SCM © 2007 Prentice-Hall, Inc 1-20 What Is an Intranet? • An intranet delivers collaboration and coordination to employees around the clock – Communication system designed by technical staff – A network of people, not of wired machines – Focus is the message, not the media • An organization-wide software and information distribution system that applies Internet technology and standards to a closed network within the organization • Normally runs in a client/server environment and a local area network configuration • Separated from other networks by firewalls, a means of preventing unauthorized access to the company’s internal data or leaks of sensitive company information © 2007 Prentice-Hall, Inc 1-21 Strategic Significance • A cost-effective way of distributing information throughout an organization • Links employees and managers around the clock and automates a lot of intra-organizational traffic • Makes it possible for a company to gain better access to its primary resource - the knowledge and experience of decision makers • Enables easier integration of processes © 2007 Prentice-Hall, Inc 1-22 Applications - Human Resources • Employee handbook • Benefits information • Employee surveys • Internal/external recruiting • Candidate screening • Organization charts • Newsletters • Company calendar © 2007 Prentice-Hall, Inc 1-23 Applications - Sales and Marketing • Product information • Market research • Prospecting • Managing sales contacts • Sales training © 2007 Prentice-Hall, Inc 1-24 Applications - Accounting and Finance • Financial reports • Expense reports • Accounts receivable/payable processing • Asset management • Policies and procedures • Payroll © 2007 Prentice-Hall, Inc 1-25 Applications - Manufacturing and Operations • Inventory control • Production schedules • Quality assurance • Part order/requisition system © 2007 Prentice-Hall, Inc 1-26 Other Applications for Intranets • Real-time broadcasting of news, including medical information. • Document management to minimize unnecessary paperwork and waste of paper. • Customized application modules like a travel or document library. • Complete e-mail for interoffice and intraoffice communication. • Internal company office circulars can be routed electronically. • Bulletin board service. © 2007 Prentice-Hall, Inc 1-27 Other Applications for Intranets (cont’d) • Real-time chat service that electronically logs all data for record keeping. • Complete company staff, operations, and organizational chart directories. • Channel for confidential exchange of data for electronic funds transfers (EFTs) and checks. • A daily to-do list and assignments from a central desk to all connected desks. – Shared calendaring • Foreign news and financial data broadcasting (running ticker) from direct feeds. © 2007 Prentice-Hall, Inc 1-28 Does Every Company Need an Intranet? • A company needs an intranet for the following reasons: – When it has a large pool of information to share among hundreds of employees • <100 employees may not be cost effective – Intranets are cheap, robust, and fast. Any employee with access to an intranet can disseminate and publish information – Intranets operate across platforms – Information is available 24/7 to all employees at the click of a mouse – Information available on an intranet can be updated quickly © 2007 Prentice-Hall, Inc 1-29 Intranet Design and Implementation Terms © 2007 Prentice-Hall, Inc 1-30 Client/Server Basics • Client/server architecture is a versatile, messagebased, modular infrastructure intended to improve usability, flexibility, interoperability, and scalability as compared to centralized, mainframe, time-sharing computing © 2007 Prentice-Hall, Inc 1-31 Types of Client/Server Architecture Two-Tier Architecture • Components – User system interface – Processing management – Database management © 2007 Prentice-Hall, Inc 1-32 Types of Client/Server Architecture Two-Tier Architecture (cont’d) • Limitations associated with two-tier model – When the number of users grows, performance deteriorates – Implementation of processing management services using vendor proprietary database procedures restricts flexibility – There is limited flexibility in moving program functionality from one server to another without manually regenerating procedural code © 2007 Prentice-Hall, Inc 1-33 Two-tier Client/Server Architecture © 2007 Prentice-Hall, Inc 1-34 Types of Client/Server Architecture Three-Tier Architecture • Middle tier is sandwiched between the user system interface client environment and the database management server environment • Middle tier manages distributed database integrity in a two-phase process • Third tier provides database management and is dedicated to data and file services • Allows different tiers to be developed in different languages • Improves performance for groups with a large number of users © 2007 Prentice-Hall, Inc 1-35 Three-tier Server Architecture Design © 2007 Prentice-Hall, Inc 1-36 Technologies that Enable Intranets • Server PC • Network File System (NFS) • Client PC • Internet Relay Chat (IRC) • Web Server • HTML authoring tools • Browser • Hypertext Markup Language (HTML) • TCP/IP electronic mail • Graphic and multimedia files • Portable electronic document (PED) © 2007 Prentice-Hall, Inc 1-37 Using Firewalls • Intranets can be protected from unauthorized access via firewalls • A firewall is a hardware/software security system that can be programmed to prevent unauthorized access to a company’s intranet or the Internet • Two primary types of firewalls: – Proxy is a go-between agent that acts on behalf of another – A packet filter checks each packet at the network level and stops any packets that might be a security risk • Intranet security, properly designed by knowledgeable users and administrators, can ensure that the system is run properly © 2007 Prentice-Hall, Inc 1-38 Planning an Intranet • Plan ahead • Provide justification • Build in-house or outsource • Form an intranet team • Build and test a prototype • Ensure effective maintenance © 2007 Prentice-Hall, Inc 1-39 E-mail and the Intranet • E-mail is what intranets are best known for • Over 200 million in-boxes are active worldwide • E-mail is becoming smarter: It now can direct specific messages to defined folders and be a place to check voice, text, and fax messages • Intranets inherit Simple Mail Transport Protocol (SMTP) from the TCP/IP suite to operate e-mail • E-mail is a potential threat for employers – – – – Confidentiality breaches Legal liability Lost productivity Damage to company reputation • Important for a firm to create an e-mail usage policy and make sure the policy is actually implemented © 2007 Prentice-Hall, Inc 1-40 Spamming and Appropriate E-mail Use • Spamming is sending unwanted advertisements or literature through e-mail or the Internet • Companies have been overwhelmed by e-mail traffic, and spam is out of control • Spot checks are no longer adequate • Trend is more toward systematic monitoring of e-mail traffic using content-monitoring software • http://www.youtube.com/watch?v=anwy2MPT5RE © 2007 Prentice-Hall, Inc 1-41 Spamming and Appropriate E-mail Use (Cont’d) • Spamming is nearly impossible to eliminate, but solutions exist: – Blacklist the sender; obtain a spammer’s address and block any e-mail from that address – Accept e-mail only from a list of approved addresses – Look for signs of spam – Use anti-spam software • Maine Spam Law – http://janus.state.me.us/legis/statutes/10/title10sec1497.h tml • Federal Can Spam Law – http://www.fcc.gov/cgb/consumerfacts/canspam.html © 2007 Prentice-Hall, Inc 1-42 Personal Guidelines to Avoid Spam • Stop giving away your e-mail address • Do not “unsubscribe,” it only confirms your e-mail address is real • Write to the Direct Marketing Association and credit bureaus • Contact your credit card companies, credit union, and mortgage companies and tell them not to release your name, address and similar data • Contact all organizations you belong to, schools, magazines you subscribe to, airline frequent flyer programs, your longdistance telephone carrier, and just about anyone who sends you a bill • As a last resort, contact your phone company and change your listing in the phone book, or simply list your name with no address © 2007 Prentice-Hall, Inc 1-43 Tony’s Rules for Stopping Spammers • Laws don’t work – Can’t prosecute what you can’t catch – Laws are tied to jurisdictions, Spammers aren’t – Spam laws • Special anti-spam software – Spammer just get “trickier” and by pass software • Blocking places that send spam – Since spammer don’t use their own mail servers you run the risk of blocking legitimate email • Best practice –Get more email addresses – Get an email address just for spammers • [email protected] – Protect important emails by using sparingly • One just for family & friends • One just for work or school E-mail and Privacy • Companies have been wrestling with the issue of privacy versus liability for employee’s e-mail activity • Firms must have a company policy that addresses privacy. Such a policy should state in writing: – That the company’s intranet and the networks that carry e-mail are company property, to be used for business purposes only – A clear definition of what is and what is not appropriate use – A clear message to all employees that e-mail of any kind cannot be private and that all e-mail may be monitored at any time • International email privacy law – http://www.mofo.com/news/updates/files/update02051.ht ml © 2007 Prentice-Hall, Inc 1-45 E-mail Etiquette • Sending an e-mail message to someone is one-to-one communication as if face-to-face • E-mail etiquette mistakes to avoid: – – – – – – – – – Do not write when you’re in a bad mood or angry Read what you write carefully Do not use sarcasm in an attempt to be clever Stay away from using all uppercase Place the nature of the message in the subject line Write short e-mails, normally less than two paragraphs Think before you send Watch your grammar, spelling, and vernacular Remember to send your attachment when you say you will © 2007 Prentice-Hall, Inc 1-46 Blogging Practices • Four major motivators for blogging: – Maintaining community forums – Articulating ideas through writing – Airing out pent-up emotions – Documenting one’s life • https://www.blogger.com/start • DANGER: Assume that everything you write in a Blog is readable by everybody on the Internet; even if you delete the entry. This is also true for Facebook, MySpace, Twitter and other social networking sites © 2007 Prentice-Hall, Inc 1-47 Instant Messaging • Sometimes the rapid response of e-mail is not fast enough • Instant messaging (IM) is one alternative medium • IM is an electronic communication system that involves immediate correspondence between two or more users who are all online simultaneously © 2007 Prentice-Hall, Inc 1-48 Extranets and SCM • Intranets are localized within a firm and move data quicker than the more widely distributed extranets • Extranets are already the backbone of the e-business future • Extranet designers at each participating company must collaborate to make sure there is a common interface with the company they are dealing with • The overall connectivity represents supply chain management • Extranet-SCM and Enterprise Resource Planning (ERP) – ERP facilitates integration of company-wide information systems with the potential to go across companies – The Internet allows linking the Web sites to back-end systems like ERP, offering connections to a host of external parties like vendors and suppliers © 2007 Prentice-Hall, Inc 1-49 Basic Extranet Layout © 2007 Prentice-Hall, Inc 1-50 Key Considerations for Extranet Installation • Identify the user(s). • List the technology components. • Specify the security requirements. • Discuss the administration of the extranet. • Understand the functions of the extranet. © 2007 Prentice-Hall, Inc 1-51 Extranets and ERP • Management support of extranets are changing how organizations share internal resources and interact with the outside business world • The entire commitment should be viewed as a knowledge management asset • A “champion” represents management support. This person is: – An advocate with the ability to build company-wide support. – Sells top management on the potential of the technology. – Demonstrates how an extranet can help the company meet its revenue goals. • Extranets can be used to manage applications and tie applications into one integrated system for deriving real value © 2007 Prentice-Hall, Inc 1-52 Management Implications • Intranets are tools to manage corporate intelligence • Change is closely related to employee satisfaction, and the effect of the intranet on the way employees do their jobs is important • Another management implication is the strategy for recruiting qualified technical personnel © 2007 Prentice-Hall, Inc 1-53 Chapter Summary • An intranet is a network connecting a set of company clients using standard Internet protocols • Benefits of intranets include linking employees and managers around the clock; companies gain access to their primary resources; and it is the foundation for developing an enterprise-wide information system • The two types of client/server architecture are two-tier architecture and three-tier architecture • Intranets can be protected from unauthorized access via firewalls © 2007 Prentice-Hall, Inc 1-54 Chapter Summary (Cont’d) • Planning an intranet is a six-step procedure • E-mail is getting smarter • An alternative to e-mail is instant messaging • An extranet links two or more trading partners • Intranets are tools to manage corporate intelligence © 2007 Prentice-Hall, Inc 1-55