E-commerce Business Models

1. Introduction
2. Evolution of Internet Business Models
3. Business Models in Practice
4. Business Model: The Six Components

1. Introduction

In the previous units, you have learned that e-commerce is a business transaction
that is performed using an electronic medium. This unit discusses the types of
transactions in an e-commerce. A transaction in an electronic market describes
the number of interactions between parties, for example, ordering, making
payment, supporting delivery and of course marketing.
One must therefore have a marketing strategy for transacting commerce
through which a corporation maintains itself and generates revenue. Business
models are created for the purpose of trying to answer the following questions:

(i) How can you get competitive advantage?

(ii) Which product-market strategy should be followed?

(iii) What should be the marketing mix?

Business models are defined as, ‘A set of shared common characteristics,
behaviour and methods of doing business that enables a firm to generate profits
through increasing revenues and reducing cost.’

Thus, in this unit, you will learn about the evolution of the Internet business
models and the business models that are currently in vogue. The latter is of
three types, namely business-to-business (B2B), business-to-consumer (B2C)
and consumer-to-consumer (C2C). It will also familiarize you with the six
components of a business model. This will help you to differentiate between a
business model and a revenue model. This unit will also elaborate on the role of
business models. To get value from a new product, a firm needs a proper
business model. You will learn how business models differ from business strategy,
and about entrepreneurial advantage.

2. Evolution of Internet Business Models

In the past few years, e-commerce has pervaded every aspect of daily life. In a
very short time since its evolution, both people and institutions have used Internet
technologies to increase production, increase convenience and enhance
communications worldwide. The Internet has become integral to daily activities
from banking to shopping and entertainment. For example, just a few years
ago, many people went into a bank and interacted with other people to conductregular banking. Today, people have embraced the automated teller machine
(ATM) that has made banking easy. Today, millions of people rely on the Internet
banking services for their banking needs.
The fast expansion and general acceptance of online business has people
wondering as to why this e-commerce did not happen earlier. The answer is
quite simple; the technology and infrastructure needed were not there to support
e-commerce. Consider, the example of computers—many business enterprises
used large mainframe computers with private data formats. These were not
easy to share with home or office users. The ubiquitous personal computers
(PCs) were not generally available. Thus, only a few computers outside the
business circle could get that information. Even when PCs became popular,
both in offices and at homes, the ability to process business was restricted.
This was because the infrastructure needed was not available.
At the same time, to set up an online or e-commerce earlier, it required
the individual company to develop the whole technology infrastructure. It was
required to develop its own business and marketing planning. However, these
days this is not the case. Now the only problem of an e-commerce is how to
integrate its business, because now many companies have resolved the complex
work of (i) developing individual Internet-based products and (ii) services that
take care of the problems of customer and supply interactions. Nevertheless,
the real challenge is the ability to combine these technologies and services
based on solid business and marketing plans, working on a real-time basis.
Today, the growth of e-commerce is at a fast pace as both organizations
and consumers have access to the Internet, either from their homes or offices.
Thus, there is excitement and the potential for success has also grown. At the
same time, the tremendous growth of the Internet has led to challenges of
increased integration of e-commerce of all capability and capacity.
The growth of e-commerce can be studied at two phases. Companies in
the first phase set up e-commerce, when e-commerce technology was new to
the market.
The trend of companies that set up e-commerce in the first phase are as
follows:

• Business organizations rushed to get an e-commerce website up.

• Little or no regard was given to check how scalable or reliable the site
   needed to be.

• It was a matter of beating competition.

Another drawback of these first-to-market consumer sites was that there
was no or little integration with the production side of the business. The production
part of the business tried to establish its own online-based relationship with
suppliers. Thus, the lack of integration proved to be a major obstacle for many
business organizations. This was due to:

• Growth of customer base

• Request for real-time order status

• Return of products

Today, in the second phase of establishing an e-commerce, owning a
website is not considered to be a way to distinguish a business. The expectations
of customers and suppliers have increased manifold. Organizations are forced
to start planning about integrating the back-end and real-time transaction
processing. Business organizations should maintain a complete customer–
supplier relationship with the help of Internet-based technologies and join those
systems to the interpersonal aspects of the business transaction when needed.
Many businesses have realized the prospects of e-commerce and are addressing
the whole business cycle and controlling the Internet technologies.
It can be concluded that these days, online business has the power to
change the business scene. Previously, the business model of a company was
considered to be the basic determination of its value. Nowadays, the value of a
company is based on its strategy, business model and its ability to sell.
Technology has started a new competition. Businesses using Internet
technologies and integrating their systems and processes more efficiently now
break the barriers and make it to the Fortune 500 stalwart. These start-ups are
able to vastly reduce the obstacle to entry while significantly increasing their
own market reach. This has been possible due to the following:

(i) Capitalizing on a continuous business proposal

(ii) Rightly applying technology.

In e-commerce, the motto is ‘first to market equals first to success.’
Nevertheless, a sound foundation has to be made. Using Internet technologies
is important to be successful in this business.

3. Business Models in Practice

There are three fundamental types of business models in practice. These are:

1. Business-to-Business (B2B)

2. Business-to-Consumer (B2C)

3. Consumer-to-Consumer (C2C)

                                          Summary of E-Commerce Model

1. Business-to-Business Model

The business-to-business (B2B) model needs two or more business
organizations that do business with each other. It entails commercial activity
among companies through the Internet as a medium. At present, there are
many types of e-commercees. The B2B e-commerce is of the following types:

(a) Supplier oriented

In this type of B2B e-commerce, a supplier establishes the electronic market
where a number of customers or buyers transact with suppliers. Generally, it is
done by a supplier which has monopoly over products that it supplies.

(b) Buyer oriented

In this type of B2B electronic commerce, big business organizations with high
volume purchase capacity creates an e-commerce marketplace for purchases
and gains by starting a site of their own. The online e-commerce marketplace is
used by buyers for placing requests for quotations and carrying out the entire
purchase process.

(c) Intermediary oriented

In this type of B2B e-commerce, a third party establishes the e-commerce
marketplace and attracts both buyers and sellers to interact with each other.
Application of B2B model
Some of the applications of B2B model are, inventory management, channel
management, distribution management, order fulfilment and delivery payment
and payment management.

2. Business-to-Consumer Model

The business to consumer model clearly concentrates on individual buyers and
is thus known as Business-to-Consumer (B2C) model. The B2C model offers
consumers the capabilities to browse, select and merchandise online from a
wider variety of sellers and at better prices. The B2C e-commerce interaction is
most appropriate for the following types of transactions:

(i) Easily transformable goods, i.e., products that are easily transformable
into digital format, such as videos, software packages, music books, and
so on

(ii) Highly rated branded items or items with return security

(iii) Items sold in packets that are not possible to open in physical stores

(iv) Items that follow standard specification

The following steps summarizes the working of B2C:

(i) The customer identifies his/her need.

(ii) Then, the customer looks for the product or service that suit his/her needs.

(iii) The customer selects a vendor and negotiates a price.

(iv) The customer then receives the product or service.

(v) The customer makes the payment for the received product service.

(vi) The customer gets the services and warranty claims that are associated
with the product.

3. Consumer-to-Consumer Model

In a consumer-to-consumer (C2C) model, consumers sell directly to other
consumers via online classified advertisements and auctions or by selling
personal services or expertise online. The C2C model involves the growing
popularity of peer-to-peer (P2P) software that facilities the exchange of data
directly between individuals over the Internet.

                                                  Summary of Business Models

4. Business Model: The Six Components

According to Henry Chesbrough and Richard S. Rosenbloom there are six
components of a business model, namely :

(i) Value proposition

(ii) Market segment

(iii) Value chain structure

(iv) Revenue generation and margins

(v) Position in the value network

(vi) Competitive strategy.

(i) Value proposition: 

 It has three components as follows:

(a) It is an explanation of any problem faced by a customer.

(b) It is about the resolution of that problem

(c) It is the value of this resolution from the customer’s point of view.

(ii) Market segment: 

 Since diverse market segments have different
requirements, it boils down to which group to target. At times, the full
benefit of a new product development is realized only when a new market
segment is focused.

(iii) Value chain structure: 

The concept of value chain structure demonstrates
the company's place and the value addition tasks done by it in the value
chain. It also shows in what ways the company captures part of the value,
which it has helped to add in the chain.

(iv) Creation of revenue and profits: 

 It means how income is created in the
business, such as rental, sales, subscription, and so on. It also includes
revenue made from the target profit margins and the cost structure.

(v) Place in the value network: 

 It identifies competitors and sellers whose
products, services or relationships create more demand for your product.
It also looks for other effects in the business network that might be used
to give more value to the customer.

(vi) Competitive strategy: 

It refers to the ways in which a business
organization tries to expand a permanent competitive benefit and utilize it
to advance the competitive situation of the company in the market.

4.1 Business Model vs Revenue Model

The term ‘business model’ is a broad term that explains things, such as the
place of a business organization in the value chain, the choice of the customers,
products and the cost of doing business. The business model plans the course
through which the company would in fact make profit. It states clearly the price
it would charge the customers.
The old model corporations have been discredited as overmanaged,
overcontrolled and overstructured but underlet. Thus, today’s top managers
should focus on their real managerial skills that would bring success to the firm
in the future. Today, a brand latest business model has come up. Here many of
the important tasks of the company are delegated to the different individual
parts, but synergy results from the vigour of the employees and unrestricted
flow of information.

4.2 Role of a Business Model

To profit from an innovation in a product or a service, a new firm or a start-up
needs an appropriate business model so that it is able to exploit its innovation
and be the market leader. Business models are needed to bring in new
technology that will yield an economic value. As the old and familiar business
models cannot be used for all new firms, new business models are planned.
The importance of the business model cannot be denied, because in many
cases the profitability of the innovation rests more on the business model itself
than on the product or service provided by the innovation. In their paper, ‘The
Role of the Business Model in Capturing Value from Innovation’, Henry
Chesbrough and Richard S. Rosenbloom provide a crucial structure explaining
the basics of a business model. As there is a complex inter-play of markets,
products and the environment in which a business organization runs, it is very
difficult to understand the organization’s responsibility in its totality. While
business experts are acquainted in their area, technical experts understand
theirs. Bellow Figure  makes it clear how the business model serves to connect
these two domains.

                                              Role of a Business Model

Many business subjects including finance, economics, entrepreneurship,
marketing operations and strategy are used to finalize a business model. The
business model itself is an essential determinant of the profits to be generated
from an innovation. A below average innovation with a great business model
could be more profitable than a good innovation with a below average business
model.

4.3 Business Model vs Business Strategy

You have read earlier in this unit about the six components of business models
by Chesbrough and Rosenbloom. They further strike a comparison between
the concept of the business model to that of strategy, identifying the following
three differences:

(i) Creating value vs capturing value: 

The focus of the business model is
on the creation of value. Though the business model only addresses how
that value would be captured by the organization, strategy focusses on
building a sustainable competitive advantage.

(ii) Business value vs shareholder value: 

 The business model helps in
the conversion of innovation to yield economic value for the businesses,
but it does not focus on delivering business value to the shareholders.
For instance, though the business model does not consider the financing
methods, nonetheless, it impacts shareholder value.

(iii) Assumed knowledge levels: 

Business model assumes a limited
environmental knowledge, even though strategy is dependent on a more
intricate examination that needs more conviction about the environment.

4.4 Advantages of Entrepreneurship

According to Chesbrough and Rosenbloom, a good business model like Xerox
has a tendency to establish thrust, but the company remains constrained to its
thriving model. At the same time, the coming up of new technologies forces
business organizations to evolve new business models. This gives new
companies or start-ups a freehand to make a choice or even develop a new
business model themselves. Otherwise, in adddtion to the risk taken up in the
technology and economic areas, an unproven business model increases the
risk further. Business ventures, generally, are more prepared to acknowledge
this risk.
On the other hand, many venture capitalists fancy themselves as investors
in business models. Thus, when it becomes obvious that the previous model is
not working, the venture capitalists often try and push for a change in the business
model.

E-Commerce Infrastructure

1. Introduction

2. Need for an Intelligent Website

3. Technology Infrastructure Required

4. Basic Web Languages for Web Designing

5. Corporate Strategic Infrastructure Required

6. Miscellaneous Website Design Tips

 

1. Introduction

In the previous unit, you read about the requirements of e-commerce and the

significance and components of I-Way. The fact remains that for any e-commerce

to be successfull, the website should be very user-friendly and attractive.

Therefore, web design is very important for company status and e-marketing

because a website works as a representative of its respective company. An

attractive website motivates the consumer to explore it further. One should keep

the following points in mind when assessing a website:

• A website should be easily accessible to a consumer and its structure

should not be difficult. It should be customer-oriented.

• It should be up to date on company’s policies, schemes and offers

about new products.

• The content of a website should be made attractive with the use of

text, pictures, animation, sound, video, etc.

• It should be designed in a manner that it can be downloaded quickly

because a consumer will not wait if a website is slow.

• The website should provide detailed and complete information
regarding its products and services; else, the consumer will not
understand the product’s value.

• Ideally, a good website explains how and what its organization offers
by pointing out how it differs from its competitors, and how it can
make a difference to the customer’s life.

• Since a vast amount of information is displayed on a website, the
website should be coherent. The customer should be able to easily
navigate the website.

• A good website should have subsections.

• A linking structure is mandatory. It describes the way in which the
alternative sections of the site are linked. This linking structure enables
users to easily move back and forth between the site’s subsections.

• Navigation tools should be present. These refer to the site tools that
facilitate the user’s movement throughout the site.

To attract and retain users, some sites provide a number of features.
Some such features are as follows:

(i) The user returns and enters the requisite information through the login
registration. The site recognizes the returning user and configures itself
as per the user’s preset preferences.

(ii) In order to identify the visitors, most sites try to track and collect data on
the returning user’s behaviour by saving, identifying and tracking
information on the user’s local disk storage in temporary files called
cookies.

(iii) Many sites provide free e-mail accounts to send and receive e-mails from
the site using a unique e-mail ID.

(iv) Users can select screen layouts and content sources based on their
interests.

                                   Figure 1 Basics of a Commercial Website

2. Need for an Intelligent Website

One cannot build an intelligent website that optimally has all sources of
information for an online company, overnight. Actually, it is a long process that
requires significant investment in technology, and an accumulation of knowledge
that can come only with experimentation and trial and error. Website intelligence
leverages four types of information.

(i) Demographics: This explains such basic elements of the customers as:

• Who they are
• What their income is
• Their marital status

(ii) Expressed Preferences: This explains what topics customers have
expressed an interest in; for example, types of music, choice of books,
and the stocks they track. The preferences are generally stored through
form-based questionnaires provided when the customer registers for a
site or a service.

(iii) Past Transactions: These are records of past transactions that the
consumers have had with a company. They are recorded when a customer
actually makes a purchase.

(iv) Observed Behaviour: This type of information is derived by observing the
manner in which the customer navigates when using the website. It also
tracks the sites he visited previous to and after visiting the said site.
Consider the following steps that e-commerce companies typically follow
in leveraging their information.

Step 1: Basic Web traffic analysis

Before starting any Web activity, one first needs to analyse the Web traffic. This
type of data provides a record of the entry and exit points into a website, pages
that were visited, links that were followed, the duration for which a person viewed
a particular page, the precise day and time of visit, the browser type, visitor’s IP
address and other information.

Step 2: Customer interaction analysis

This step is used to collect more information about the customer’s interactions
with the website. The registered users are people who have had to register for
site usage, generally by filling out a survey form. As you know, in any site (even
a free site) the user has to fill a registration form in which there are various
types of questions related to profession, education, age, gender, leisure activities,
merchandise purchasing, etc. Through this registration process, the site is able
to get information related to both the demographics and preference. This type
of data is used to help inform personalization engines to serve the contents
according to the visitor’s interests.

Step 3: Real-time personalization

Personalization is the ultimate realization of the one-to-one marketing dream.
Customers are recognized when they come in; they can tailor the way they
interact with the merchant; and receive promotions and marketing pogrammes
that perfectly fit their personal requirements and preferences.
The following are four ways of personalization:

(a) Greetings: This is a more general way of personalization. The customer
is greeted by name and welcomed back whenever he or she visits the
site.

(b) Customization: It allows a customer to tailor the service he or she receives
from an e-commerce site. For example, any Hotmail user can customize
his use of the popular search engine by creating a ‘My Hotmail’ environment
which is more adapted to his needs.

(c) Narrowcasting: This relates to the delivery of time-sensitive information,
personalized to each customer. These types of personalized messages
can be sent through e-mails, phone calls or pagers which enable the
customer to receive information without having to connect to the site.

(d) Recommendation: Recommendation technology has evolved dramatically
in the past few years. Earlier, it was based only on the preferences that a
customer would have explicitly expressed during registration. Now, it can
be done in real time and predicted automatically by the personalization
engine using different types of information such as observed real-time
behaviour, purchase histories and expressed preferences.

Step 4: Getting to fine-grained segmentation

Fine-grained segmentation is used to enhance the site’s marketing power by
using an e-commerce intelligence system performing customer segmentation.
You can start with products that are at hand’s reach through coarse segmentation,
and then continue to fine-grained segmentation. This step also uses artificial
intelligence to conduct knowledge discovery. That is, it can look for patterns in
large data sets and identify common elements.

Step 5: Going through the streams of clicks

The click-stream data contains details on customer behaviour that are richer
than what can be achieved in traditional channels. Click-stream information is
the recording of every page request from every visitor by the website owners.
This information is stored into massive log files.

Step 6: Enrich content with external data

Once a customer performs a number of purchases, the website is able to further
enhance the customer’s profile. Demographic data from third party providers
may be added to the profile to provide a richer view of the customer base.
Analysing the enriched data might show, for instance, that a customer who
buys history books falls into a demographic segment which is also inclined to
buy classical music.

Step 7: Reaching optimal intelligence

A company can reach optimal intelligence once it is able to combine historical
transaction records, observed behaviour via click-stream data and preferences
expressed in online surveys.

2.1 Website: Goals, Objectives and Manpower Required

Before creating a web page, it is important to decide the goals, objectives, and
overall purpose of the e-commerce website. Without these, the website may
not have the focus it needs to be successful. To help determine the goals and
objectives, you have to ask and answer questions such as the following:

• Will the website collect information about current and potential customers?
• Will the website allow the customers to make online orders for products
and services?
• Will the website advertise products and services?
• Will the website provide links to the related web pages?
• Will the website provide general information or industry-related
information?
• Will the website recruit employees?
• Will the website act as a virtual salesperson that will perform online
transactions?
• How many web pages are planned for design?
• Should the site be structured such that it helps in gathering data for the
purpose of marketing?
• Is there a requirement for development of special tools to help users
when they visit the site?
Based on the answers to the aforementioned questions, you will either
require a one-stop shop or separate contractors that will look into each part of

the site. The simplicity or complexity of the act of designing a website largely
depends on your imagination and/or budget constraints.

2.2 Design vs Development

Often, the terms ‘Web designing’ and ‘Web development’ are used
interchangeably. This, however, is not an accurate usage. Designing a website
and developing one are two very different activities. Designing a website has
two components, the ‘front end’ and the ‘back end.’ While these have been
used interchangeably, usually design means the front-end whereas development
means the back-end.

Front-end design

When a customer visits a site, what he sees is the front end. These are the
‘pages’ that display the graphics, images, and text on your site. Those that
design a website focus on this end. They select appropriate images and fonts
and even decide text and image arrangement. Appreciation of aesthetics is a
Web designer’s strength. He need not be tech savvy. Nonetheless, apart from
understanding what will be visually appealing on screen, designers need to
know the technical limitations while designing for the Web. An experienced
Web designer should also be able to collaborate with a Web developer.

Back-end development

Web developers help you build your website. They work on the back end, the
side not visible to the surfer, to make a site work. Although not seen by visitors,
this site is required to enhance the visitor’s experience.
Back-end functions are all about making provisions so that visitors can
view different pages and even enter data, execute sales transactions, and allow
images to alter or move. It is important for the Web developer to be adept at
various/languages such as Javascript.
Thus, it is important to ensure that the resumes of potential employees
reflect the following skills:

• HTML (is used to create text and the layout framework of the page)
• Web imaging (it creates and compresses images)
• Javascript (it writes programs which run as part of web pages)
• ASP (customizes web pages for users)
• Java/C++ (writes programs that are embedded in a web page)

2.3 Advantages of a Website

What is novel about the Internet is that it not only is a mine of information, but is
also available at the click of a button. The Internet is undoubtedly a huge source
of knowledge. All that a person requires is a website and a resource-generous
Web hosting company. Most people feel that designing a website is an expensive
project. This, however, is not true. All that you need to do is to find the right Web
host. The benefits of a website will certainly override the costs.
Whether for personal use, or to aid a business venture, the advantages
of a website are tremendous. Many who have their own websites use them to
further a hobby or an interest since a personal website too can be an excellent
avenue for the exchange of knowledge with others. On the other hand, firms
use websites such that their goods and services are marketed and promoted.
For them, the attractive advantage is that they are able to cut costs involving
postage, couriers and advertising, etc. For them, cutting back on such expenses
as postage, couriers and advertising, etc., becomes the attractive advantage.
The following are the key benefits of having a website.

Increased awareness of products and services

The Internet allows a business to expand its markets tremendously. Businesses
no longer need to limit their focus only to the local scene. Through the use of the
Internet, businesses can effortlessly explore international and regional markets.
This introduces dynamic changes in participating businesses. This is because,
their nature and marketing activities alter and many find encouragement to enter
new markets by diversifying their products and services. Trading hours too find
extension since numerous items can be viewed on a website round the clock.

Freedom

The Internet provides great freedom to its users. Therefore, not only do those
that are otherwise introverts, frequent the Net, but even the smallest of
businesses are tempted to join. In fact, such is its growth rate that users are
alarmingly increasing at a rate of approximately 50,000 per day. Since information
can be freely posted on the website, and hence the Net, businesses profit in a
huge way. Not only has the Net become a huge customer marketplace, but
businesses have found a medium that enables them to compete with the largest
of organizations, on an even field.

Cost advantage

Web businesses are keenly aware of their profit potential simply by being on
the Internet. The advantages are very obvious. They can advertise their products
and services and yet avoid the costs and delays caused by such activities as
printing, publishing and distribution. Since the Internet offers a global
marketplace, greater value is added to the costs outlaid for promotion and
marketing. Thus, compared to the offline market, the benefits are many more.
Websites incorporate e-commerce facilities that transform 2D screen visuals
into user-reactive models. For instance, consumers can place online orders for
products and services. This greatly reduces their administration costs. Some of
the ways to reduce costs are—follow-ups through e-mails thereby reducing
costs incurred by making phone calls, electronically generated and distributed
newsletters that reduce printing and distribution costs, and most importantly,
extended trading hours.
It is now felt that if any business does not exist on the Internet, then it is
not only losing out on the benefits of a dynamic industry, but is also increasing
its chances of being forgotten.

3. Technology Infrastructure Required

A great deal of planning and preparation goes into the development of a
successful website. Acquiring the vital tools of the Internet is a significant part
of that preparation.

HTML Editor

An HTML editor is a software program used to edit and create HTML documents.
This is a tedious process which is why most Internet marketers prefer using an
HTML editor. There are some that prefer writing their own HTML code.
Nonetheless, HTML editor is an advantageous tool to use, as there are editors
that tend to add unnecessary codes which may not support the latest technology.
As a potential Web developer, whether you write your own HTML or use an
editor, learning HTML is very essential. Its knowledge not only provides
independence, but it also enables one to add special effects a feature that not
many HTML editors support.

Text Editor

A text editor is a software program used to edit text which does not involve any
special formatting. Those who write their own HTML code, need an adequate
text editor. Although using a text editor can be a time-consuming activity, its use
ensures that the code is clean, free from errors and that the file size is not very
large. Moreover, a text editor is also useful in writing articles and in editing
scripts. Those who have a Windows operating system use the Note Pad as
their preferred text editor.

FTP

File Transfer Protocol, or FTP, is a system that is used to upload files to a Web
server and download files from a Web server. It provides you a way to control files
on the server. This makes it an important tool. An FTP program enables operators
upload scripts, set file permissions, create folders and transfer files to and from a
server. To use FTP, a software program that supports it has to be downloaded
and installed in the computer; the most popularly used being WS FTP Pro.

Graphics Editor

A graphics editor is a software program used to edit as well as to design graphics.
Most Internet entrepreneurs find graphic designing intimidating. However,
since hiring a professional graphics designer can be expensive, most
entrepreneurs learn some basic design techniques. The program that Internet
marketers use the most is Paint Shop Pro. It is a powerful program and alone
can design graphics professionally.

Zip/Unzip Software

A Zip file is an ‘archive’ of one or more files compressed into one file for easy
distribution. These are used to compress and transport file archives over the
Internet. Since downloading one Zip file is more convenient than downloading
several different files ZIP file is the popular method for distributing files
electronically. Moreover, the files in the Zip archive are compressed. Therefore,
download time gets minimized.
You can effortlessly extract or unzip a Zip file using a Zip/Unzip software
program. WinZip is the most popular Zip program because it makes the use of
file archives easy and uncomplicated. WINZIP has certain easy features that
allow files to be conveniently viewed, extracted, added, deleted and tested.
These features include point-and-click and drop-and-drag.

E-mail

Most Internet service providers also feature and provide e-mail accounts to their
clients. Nonetheless, these accounts are inadequate to conduct business over
the Internet. This is more true for those businesses that receive large numbers of
e-mails every day. The disadvantage of an e-mail is that it contains the ISP’s
name and is also very limited when it comes to features and options. Outlook and
Eudora are the most popular e-mail clients. Outlook and Eudora enable you to
download e-mails from a server. In addition, it offers such features as sorting and
filtering. You can easily organize e-mail messages. The most important feature is
that your e-mail address remains your own domain and not another’s. Therefore,
a webmaster toolbox always has a significant role in your success.

4. Basic Web Languages for Web Designing

HTML

HTML is a method which converts ordinary text into hypertext. Technically
speaking, HTML is not a programming language, but a set of special codes that
controls a text’s layout and appearance. The instructions are within a data. This
data informs the browser, which is a display program, how to render the data
that is contained in the document.

JavaScript

Originally called LiveScript, JavaScript was developed by Netscape. An
agreement with Sun Microsystems changed the original name. The intention
was to benefit from the growing popularity of Java Programming language.
JavaScript is a language that can be executed on the web browser. Java script
programs do not require any software and can run on Internet Explorer or
Netscape Navigator. It is a client side scripting language, and is basically used
to validate and edit an image, text colours and other things. JavaScript is casesensitive.

VBScript

Developed by Microsoft, VBScript is a subset of the Visual Basic for Application
language used in Microsoft Office suite. Just like the JavaScript, VBScript is
also a client-based language. Again, like Java, VBScript is also run on Internet
Explorer and Mozilla Firefox. The most pertinent difference between them is
that while VB can be compiled, a VBScript cannot be compiled. VBScript is the
default ASP scripting language.

Perl Script

Perl is a powerful text processing language. Prior to the development of Active
Server Page (ASP), it was extensively used in Common Gateway Interface
(CGI) scripting. Perl Script is a subset of Perl and retains most of its functionality.
Microsoft does not ship Perl Script with ASP, but it can be downloaded from the
Internet.

Active Server Page

Active Server Page (ASP) allows users to be treated as unique entities. This, in
spite of the fact that all the users may be running the same program on the
same machine, i.e.,your Web server. Needless to say, running a complex
program for multiple users on one computer requires many resources.
Fortunately, Microsoft makes sure that those resources are at the users’s
disposal. ASP provides:

• A means by which individualized data can be saved for each other
• Access to the various file systems
• Access to the various databases
• A way by which Control Object Model (COM) can be launched and
controlled
In other words, ASP can be used to create multi-user application. This
implies that one can obtain application scalability by leveraging ASP.

XML

XML is not just another mark-up language, it is a Meta language. In programming
parlance, ‘meta’ means description. In other words, it is used to provide
descriptive information about a document. It is very different from HTML. The
main difference is that while HTML is a ‘fixed’ language, XML is not. HTML has
a set, pre-decided structure that has to be followed to make pages workable.
XML, on the other hand, is flexible enough to allow users to create their own
tags. It can even be extended by creating other mark-up languages with it. XML
can be used to write mark-up languages for many kinds of applications. They
can be used for ATM machines, databases, etc. It is not only a powerful tool for
creating other languages but it also works much like its parent language, SGML.
At the same time, the advantage that XML has over SGML is that SGML is
extremely complicated while XML is relatively easy to learn and use.

5. Corporate Strategic Infrastructure Required

Initially, when companies were beginning to establish themselves on the Web,
their websites was in their infancy. They were more like static brochures, were
not updated frequently with new or additional information and did not possess
the ability to help the company’s customer or vendor transact business. As Web
technology transformed fairly rapidly, only a few businesses were able to catch
up with these changes in terms of website development and management.
Internal Development vs Outsourcing: There are a fair number of companies
that tend to avoid the problems of e-commerce site development by outsourcing
the project. However, this is not advisable. An e-commerce website can be
successful only if it integrates and supports those activities which the business
is engaging in. Nonetheless there are, companies that are large and technically
self-sufficient enough to launch their own e-commerce projects without requiring
external help. The key to the success of any project is that a balance is struck
between the support from inside and outside for each project.

Internal Team: To begin with, a company needs to decide the parts of its ecommerce
project that require to be outsourced. This is achieved by creating
an internal team that assumes responsibility for the entire project. Such a team
should include professionals who have sufficient knowledge about the Internet
and the Web. They also need to be creative and interested in taking their
company beyond its existing boundaries. Including a technical professional is
not sufficient. The person should be knowledgeable about the company’s
business. In order to create a successful e-commerce project, it is very essential
that the appointed people have sound business knowledge, creativity, and are
well respected by the company’s line managers.
The internal team takes full responsibility for the e-commerce project.
This means that from deciding the objectives of the site to their final
implementation and operation, the team is ultimately responsible for the initiative.
This team also has the responsibility of deciding the sections of the project that
need to be outsourced.

Early Outsourcing: Many companies choose to outsource the initial designing
and development of their e-commerce projects. This is usually done for an
early launch of the project. The outsourced team develops the site, and trains
professionals from the concerned company before handing them charge of the
site. This mechanism is known as early outsourcing.

 Late Outsourcing: This type of outsourcing works in the reverse pattern. The
initial site design and development is done by the professionals of the concerned
company. They even implement the system and operate it so that it becomes a
stable and integral part of the company. After the company gains the competitive
edge that the system was meant to provide, its maintenance is outsourced. In
this way, professionals can channelize their energies to further develop new
technologies. This mechanism is known as late outsourcing.

Partial Outsourcing: In this type of outsourcing, only specific functions of a
project are outsourced. A company that specializes in designing, developing,
implementing and operating a website is hired for this purpose. The electronic
payment system is a case in point. Most vendors willingly provide complete
customer payment processing. These vendors provide a site that takesover
when customers are ready to pay, and returns the customers to the original site
after processing the payment transaction. Handling the e-mail and response
function of numerous small websites is another example of partial outsourcing.
Many companies also like to send an automatic order confirmation via e-mail
as soon as the order or credit card payment is accepted.

6. Miscellaneous Website Design Tips

Keep it Simple

The type of website one chooses to create depends on the market one wishes
to target. Unless the market that you are trying to reach consists of teenager or
such groups that appreciate a dressy website, it is recommended to keep the
website simple. This rule is particularly applicable if yours is a professional
company.

Navigation

Also ensures that the navigation is simple. This can be done by making available
a menu, textual or graphical, on each page. If the site is large, care should be
taken that visitors always know the section they are visiting. The site should
also be such that simple easy ways are available that help locate links which
will redirect visitors to the main page or any other section.

Font Size

It is advisable not to fix the font size as there are surfers who face problems
reading text that is in a small font size. They like to set their own font size. If the
font size is fixed, it discourages many such people from visiting the site.

Load Time

Not all surfers have a DSL cable modem connection. There are many who
browse with 14.4K modems. The need for speed is the key factor on the Internet.
Whether users are on high-speed connection or dial-up modem, speed is of
great value. Recent studies have shown that if your page does not load in the
first 8 seconds, the user is likely to move away from the page. People are
switching to high speed internet connections, more so in the case of mobile
users who are on the move. The web page should load rapidly. The size should
be about 50kb including images, content and other media elements.

Screen Resolution

There are three major screen resolutions: 640 × 480, 800 × 600 and 1024 ×
768. Since mobile devices have different width, you have to provide for pages
working well on smart phones and iPad as well. You should use device emulators
to test the site on as many devices as possible. Also, since today, most users
have a screen resolution higher than 1024 × 760 pixels. The smart phone screen
also has to be taken into consideration, and the use of emulator will be most
helpful. It is erroneous to assume that all monitors are set for the same resolution.
The difference in dimension and proportion can cause unexpected issues
when zooming in mobile browsers. The close up view of the product is essential
on an e-commerce site, for e.g. Apple doubled the pixel density of its display in
iPhone 4, essentially to circumvent the zoom-in issues.

 In Windows XP/Vista/Windows 7
Right click on your desktop
Click on properties
Click on the settings tab
You can change your monitor’s resolution by sliding the bar for Screen Area.

On a MAC
Apple Menu > Control Panels > Monitors > Choose Setting

Frames

Why is it that frames do not work? This is because they increase the load time.
Loading two pages simultaneously is a problem for people with a slow connection.
Moreover, frames also take up space, more so if there are more than two frames.
If the screen’s resolution is 640x480, it can have a bad effect. Of course, you
can add a scroll but again screen resolution will pose a problem. Creating the
perfect layout can be difficult especially if it has to be created using frames that
work at all resolutions.

Animation

Animation should be kept at a minimum unless the site is meant either for
children or for teenagers. It takes away from the main focus of the site which
ideally should be its content.

Links

Links should be created that direct the visitor out of the site. This allows flexibility
to the visitor who can then browse new links while staying on your site.

Banner Exchange

Banners should never be on the front page because the visitor might get
dissuaded before he has even explored the site. Banners should be located in
the inner pages of the site. Even then these should be limited to the bottom of
the page.

Top of Page

When pages are long, links to the top of the page should be provided at the
bottom. Giving text links at the bottom is another alternative. This way, the
visitor will not have to scroll to the top for the menu.

Table Tricks

Playing around with tables can yield good results. You can place tables inside of
each other, and can differentiate by using different colours for each.

Website Image

Also ensure that your website projects the image you want it to. This image can
be projected with a simple manipulation of colours, layout and design. Fonts
too can be experimented with. A judicious use of all such elements can go a
long way to create the desired look.

E-Commerce: Requirements and Architecture

1. Introduction
2. Requirements of E-Commerce
3. Functions of E-Commerce
4. E-Commerce Framework Architecture
5. I-way or Information Highway

1 Introduction

e-commerce which began in the early 1970s,
grew rapidly alongside the advances in telecommunication and information
technology. Thus, today we find that there is hardly any form of business that
has not adopted e-commerce. Having made this statement, let us now look into
the various requirements that one should possess to venture into e-commerce.
This unit gives you the details of the essential components that are required
for setting up an e-commerce. The unit also highlights the various components
of the Information Highway or the I-Way that routes information and services
between the business and its clients.

2. Requirements of E-Commerce

 

The following are the requirements of e-commerce:

• Improved customer service

• Origin of new business opportunities

• Enhanced speed and accuracy of a product

• Product cost saving

• Improved customer services: These days, consumers want better

service. Therefore, e-commerce services offer a means of communication
between the consumer and the company. The consumer can even make
online complaints to a company. Most websites provide a different e-mail
id where complaints can be mailed. Customer-oriented organizations take
complaints very seriously. Not only are the grievances given a good
hearing. Action is taken almost immediately. It is possible for satisfied as
well as dissatisfied customers to express their opinions and also make
suggestions. The bonding between the company and the customer
strengthens.

• Origin of new business opportunity: Bigger network between
consumers and companies can lead to new business opportunities.
For example, a business may find infinite possibilities to develop and
increase its consumer base. A company offering gardening-related
products may also think of venturing into delivery of bouquets, cakes and
gifts on request, for a price. Companies offering toys for toddlers could
also come up with a forum where parents can interact with paediatricians
or child psychologists to clarify doubts.

• Enhanced speed and accuracy of a product: The usage of e-commerce
services reduces human errors and other problems like a duplication of
proceedings. This perfection in speed and accuracy, plus easy access to
documents and information affect the increase in production. A customer
care executive may often forget to enter necessary details of a transaction.
She may have to call up and bother the customer repeatedly to get some
information. In case of online interaction, the customer will fill in his own

details. Reconfirmation may not be necessary at all. Wastage of time and
money can be checked.

• Product cost saving: Despite the fact that you can reduce the cost of a
product by the use of e-commerce services, it also reduces the errors
and the cost of sending the information to partners.

 Prerequisites of E-Commerce Procedure

 

More and more people are getting into e-commerce. This is natural because
there are hardly any barriers to entry. Online businesses can be run from home.
You do not really need degrees and certificates to get started. However, you do
need to give the venture some serious thought. A lot of work would be required,
at least initially.

In order to conduct e-commerce, the main things you will require include
the following:

1. A commercial website like www.e-commerceguides.blogspot.in

2. A product or service you want to sell through the respective websites

3. Shopping carts or purchase order forms

4. Current credit card account that will be accepted on e-payment

5. An online payment gateway, if you plan to process credit cards in real
     time, over the Internet

6. A secure socket layer (SSL) to secure the gateway

3. Functions of E-Commerce

 

E-commerce applications enable various business functions and transactions
to be done electronically. Some of the functions are discussed as follows:

• E-Advertising: Advertising of information is currently the largest

commercial activity on the Web. For example:

(i) A company’s website contains its profile and all the information on
its products and services.

(ii) It displays banners that can be clicked.

(iii) E-commerce portals

(iv) Newsgroups also provide publicity.

• E-Catalogues: Web pages that offer information on products or services
that a company offers are available on an e-catalogue. An e-catalogue
provides information on:

(i) Packaging

(ii) Product attributes and characteristics

(iii) Availability

(iv) Payment modes

(v) Cost, etc.

• E-Publishing: This sector was among the first few to spend on this novel

technology especially on the Internet. E-publishing has led to several
successful e-commerce endeavours, such as an independent publication
through the Internet and electronic newspapers.

Online publications offer services, such as:

(i) Online reading/browsing

(ii) Online search

(iii) Customized information services 

• E-Banking: This facility offers remote banking electronically. Electronic
banking is also referred to as online banking, cyber banking, home banking
or virtual banking. It enables Web users to make online purchases and
pay for the same using an online-banking facility. It is cost-effective, simple
and available 24 hours. Customers have access to several services, such
as:

 (i) Bill payment

(ii) Electronic cheque writing

(iii) Record keeping

(iv) Tracking of bank account, credit cards

3.1 Shopping Services

 

Shopping services are of many types. A few of them are discussed as follows:

1. Services provided by independent businesses who send their
representatives to the stores to do comparison shopping for specific
products. A shopping service is hired on contract to compare competitive
prices or prices for the same item in competitive stores, depending on the
request, and the needs of the client.

2. Shopping services that are offered to cable television subscribers where
consumers can buy products (usually at a discount) that are displayed on
a special shopping services channel.

3. Shopping services are offered to subscribers of personal information
services for home computer use. For example, a company provides online
information to subscribers. Among the many services offered by this
company is one called products guides, from which consumers can shop
and select purchases right from their own computer terminals.

3.2 Information Services

 

Information service is also known as information systems. For several
organizations, information systems or information services are accountable for
IT and Management Information Systems. Different types of decisions are
supported by information systems at various levels of the organizational
hierarchy. Key information systems include information management software
and structural databases. They include the following:

• Enterprise Collaboration System (ECS)

• Transaction Process System (TPS)

• Decision Support System (DSS)

• Executive Support System (ESS)

• Management Information System (MIS)

4. E-Commerce Framework Architecture

 

E-commerce applications are built on the existing infrastructure for online
communication, network and connection software which frames the nascent
information superhighway.

E-Commerce Applications

E-commerce can be applied in:

1. Supply chain management

2. Online banking

3. Procurement and purchasing

4. Online marketing and advertisement

5. Home shopping

Figure (A)  shows several e-commerce applications, including interorganizational
and customer-oriented examples. Without each of the building blocks in the
infrastructure, none of these uses will be possible.

                                                  Figure (A) E-Commerce Applications

 4.1 Client–Server Architecture in E-Commerce

 

The client–server model is followed by the applications of e-commerce. The
model lets the client work together with the server with the help of a request–
reply sequence governed by message passing. The server handles application
tasks, storage and security and gives scalability to increase clients.

                                                      

                                                         Client–Server Architecture

4.2 Building Blocks of E-Commerce 

Enterprise applications, insights, functions and IT infrastructure form the building
blocks of e-commerce.

Enterprise application software refers to software that facilitates the
performance of business functions such as scheduling (of production/

manufacturing processes, etc.), accounting, management of customer
databases/information, management of bank account/dealings, etc. It is common
to see such software hosted on servers. It is capable of serving multiple
enterprises concurrently, over a computer network. This gives enterprise software
an edge over the commonly used single-user applications which can only perform
on a user’s PC. These single-user applications can only serve one user at a
time. Enterprise software provides solutions to problems that concern the
enterprise as a whole and not individual departments. Only large enterprises
can afford to build such enterprise software. This software becomes the pillar of
the IT systems on which the entire enterprise functions and communicates.
Among other things, there are enterprise applications for various functions such
as:

• Finance

• HRM

• Customer relationship management or CRM

• Supply chain management or SCM

• Product life cycle or PLC management

• Enterprise commerce management

• Enterprise resource planning or ERP

All these processes, such as SCM, CRM and ERP need to be integrated
properly for e-commerce to be successful. The IT infrastructure required for the
same may include the following:

• Application servers

• Web services

• Wireless technology

• Database software

• XML

• Storage systems

• Server platform

Business intelligence would also be required for Web analysis, for
managing knowledge and content and for mining data, if required, depending
on the nature of e-commerce.

For today’s growing e-commercees, it is very important to consider the
issues of security of information and the reliability and scalability of the systems
as well. This is taken care of by integration.

The two indispensable pillars that support all e-commerce applications
and infrastructure are as follows:

(i) Public policy to govern universal access to privacy and information
pricing.

(ii) User interface and transport in the interest of compatibilities across
the entire network to dictate the nature of information publishing.
Information should be accessible by any device, which the consumer
chooses, and should be supported by any type of operating system.

5. I-way or Information Highway

 

Any e-commerce application will need the I-Way infrastructure in the same
manner as any normal business would require the interstate highway network
to carry goods from one place to the other.

I-Way is a network of interconnected data highways of several types:
• Cable TV wires

• Telephone wires

• Cellular and satellite

• Radio-based wireless

I-Way is an interactive two-way high-capacity method of transporting
information and services. I-Way is applicable in large volume e-commerce

applications as it provides traffic-free telecommunication service. I-Way helps
organizations, firms and companies in upgrading their network infrastructure.
It also helps companies and organizations in recognizing the following:

1. Their infrastructure

2. Ways to change their business

3. Transaction strategies (marketing, advertising, etc.)

4. Ways to sell their products and services

5. Ways to change their relationship with the customer

5.1 Market Forces behind I-Way

 

The market forces behind I-way are divided into two categories:

1. Requirement of market participants

2. Strategic alliances and I-way infrastructure

1. Requirement of market participants

 

According to market-participant demands, I-Way is influenced by the user and
the organization. The I-way superhighway is based on the behaviour of the
consumer and the producer because they have multiple roles.

The following list plays an important role in the I-Way structure. The multiple
roles of the users that help in structuring the market are:

• Numbers of users who use online services

• Consumers who pay for information and products

• Persons who provide services

• Others include third-party brokers and intermediaries

Until recently, the marketplace was divided into the communication,
entertainment and information sectors. The boundaries between communication,
entertainment and information are not absolute. For example, video is a part of
information, entertainment and communication (via videoconferencing).
Television sets and PCs are now able to interact or exchange any sort of data.

2. Strategic Alliances and I-Way Infrastructure

 

The success of I-Way is based on market strategies. These strategies are built
according to needs that are based on market structure, i.e., communication,
entertainment and information.

The resources required for building these three segments (communication,
entertainment and information) of I-Way are driving companies to make
maximum use of existing facilities. This is done through alliances to control
costs and create test markets.

Two aspects of these alliances are as follows:

(i) They cut across the industry line, a diversity suggesting that a number
of companies will perform different roles within alliances, for example,
telephone or cable companies deliver information whereas computer
hardware and software firms provide access hardware and
applications to use the data information.

(ii) Many alliances are international, signalling that I-Way will be global
from the start.

5.2 Components of I-Way

 

There are three major components that make up the I-Way infrastructure:

(i) Network Access Equipment or Component

(ii) Local Access Equipment or Component

(iii) Global Information Distribution

(i) Network access equipment or component

To access any network, specific equipment is required at the customer’s end
and this enables the consumer to access the network. It consists of hardware,
such as routers, switches and access devices, such as computers and set-top
boxes. Software platforms are browsers and operating systems.

(ii) Local access component

Local access component is the link between businesses, homes, schools and
organizations to the main communication point also referred to as the ‘last mile’.
Last mile connection represents a tremendous investment that cannot be easily
replaced or overlooked in any network strategy.
It provides the following types of connections:
(a) Telephone-based last mile
(b) Cable-based last mile
(c) Electrical-based last mile
(d) Wireless-based last mile

(iii) Global access component

Nowadays, e-commerce activities are not limited to any country; and with the
world becoming a global village, a proper network infrastructure is required to
connect people and businesses across the world. These types of networks
include:
(a) Long distance networks (via coaxial cable or fibre optic cable)
(b) Satellite

                                                  Online Information Service

5.3 Public Policy Issues Shaping the I-Way

 

Governments are expected to play a crucial role in defining I-Way. However,
there are some major issues as follows:

(i) Cost

Who will pay for constructing the I-Way? Some favour the interstate-highway
model with government construction, ownership and maintenance. Others
support the current, regulated, telephone-system model.

(ii) Subsidies

Subsidies include tax breaks, government, business or other forms of
encouragement. These raise an open question. What will these tax subsidies
actually subsidize?
Who will pay to extend the networks to non-profit institutions such as
schools, hospitals and the police and fire departments?

(iii) Regulation

Some enterprises argue that if a highway is built with private funds, there should
be no government regulation. The only regulation that should exist should be to
provide public access, privacy and reasonable tools.
Yet, there are still many issues that remain undecided:

What are the rules?

Who writes them?

Who enforces them?

(iv) Universal Access

Some economists argue that the market should decide who gets access to the
I-Way. Others insist that the highway operations must provide universal access,
however, at a reasonable cost.

If the I-Way is built and run by private interests without significant
government investment, these institutions may not be able to afford connecting
to the network.

Issues that may arise are:

• How are firms ‘encouraged’ to provide universal access?

• How universal is universal? Is it just nationwide or international access?

Internet-Component of I-Way Network Infrastructure

The Internet is a well-known component of I-Way network infrastructure.

• Its general infrastructure targets not only one e-commerce application,
such as video-on-demand or home shopping, but a wide range of
computer-based services, such as e-mail, EDI, information retrieval
and videoconferencing, online banking, game, music, movie and
chatting.

• The Internet is a unique combination of postal services, telephone
systems, research libraries, super markets and talk show centres that
enable people to share and purchase information.

The concept of the Internet is based on networking. The basic principle is
to share information between or among computers.
‘The Internet is the network of various small networks.’
The Internet includes standalone computers, local area networks or LANs,
metropolitan area networks or MANs and wide area networks or WANs.
The Internet can be differentiated by the language spoken. It is divided
into two parts:

(a) Academic Internet

(b) Business Internet

(a) Academic Internet

 

The characteristics of academic Internet are:

(i) All the host computers speak the same language (TCP/IP).

(ii) It consists of various government networks, regional networks, campus
networks and some international networks.

(iii) It includes (a) NSFNET-US group of research IP network. (b) EBONEEuropean
group of IP network.

(b) Business Internet

 

(i) The computer can speak a variety of languages other than TCP/IP. These
include:

(a) ISO/OSI x.25- based packet switching networks

(b) SNA-based BITNET

(c) Other languages for networks run by commercials

(ii) The business Internet consists of online services, value-added networks
and other e-mail only services.

The academic and business networks can talk to each other through
language (protocols) transitions called gateways, stationed at the network border.
More recently, business Internet providers have begun to adopt TCP/IP
as the standard protocol on their own networks, thus allowing smooth linkage
with the academic Internet.

I-Way includes both the academic and business Internet categories and
extends the boundaries further to encapsulate non-IP based networks such as
telecom carriers network, cable TV, mobile and cellular networks.

                                                       Figure 4.4 Part of the Internet

 

Network Infrastructure for E-Commerce 2

Network Infrastructure for  E-Commerce

 

1. Introduction
2. Common Gateway Interface
3. Multimedia Objects
4. Network Access Equipment
5. Network Cables
6. Broadband Telecommunication

 

 

1 Introduction

 

In here, you will learn about Common Gateway Interface (CGI), which
is a process used to share the data between the web server and the web browser.
CGI is a set of standards where a program can send data back to the web
server where it can be processed. Also discussed at length is broadband
telecommunication, which makes use of a digital or analogue signal to relay
voice and data. In most applications, the term is associated with systems offering
fast transmission of data, either using latest digital technology or an analogue
system with a wider bandwidth. There are numerous types of broadband
telecommunications in use today.

You will also be taught various other topics, including, but not limited to,
multimedia objects, network access equipment, and network cables.

2 Common Gateway Interface

 

As you traverse the vast frontier of the WWW, you could come across documents
that make you wonder, ‘How did they do this?’ These documents could consist
of, among other things, forms that put for advice or registration information,
image maps that allow you to click on different parts of the image, counters that
present the number of users that accessed the document, and utilities that
allow you to search databases for specific information. In most cases, you’ll find
that these properties were done using the Common Gateway Interface,
commonly known as CGI.

One of the Internet’s worst-kept secrets is that CGI is astoundingly simple.
That is, it’s trivial in design, and anyone with an iota of programming experience
can write rudimentary scripts that work. It’s only when your requirements are
more demanding that you have to master the more complex workings of the
Web.

CGI is the part of the Web server that can communicate with other different
programs running on the server. With CGI, the Web server can call up a program,
while passing user-specific data to the program (such as what host the user is
connecting from, or input the user has supplied using HTML form syntax). The
program then processes that data and the server passes the program’s response
back to the Web browser.

CGI is not an enchantment; it’s just programming with some particular
types of input and a few strict rules on program output. Everything in between is
just programming. Of course, there are special techniques that are particular to
CGI. But underlying it all is the simple model as shown in Figure (A)

                                                          Figure (A) CGI Model

Common uses of CGI include:

 

• Guest books
• Email forms
• Mailing list maintenance
• Blogs

3 Multimedia Objects

 

• Multimedia objects are files that hold images, audio recordings, video
clips and scanned documents, etc., which relate to some fact within our
genealogical data. A multimedia object can be linked with several entities
(animals, person, family, source …) and vice versa.

• In other words multimedia is media and content that uses a combination
of different content forms. The term can be used as a noun (a medium 

with multiple content forms) or as an adjective describing a medium as
having multiple content forms. The term is used in contrast to media which
only use traditional forms of printed or hand-produced material. Multimedia
includes a combination of text, audio, still images, animation, video, and
interactivity content forms.

• Multimedia is usually recorded and played, displayed or accessed by
information content processing devices, such as computerized and
electronic devices, but can also be part of a live performance. Multimedia
(as an adjective) also describes electronic media devices used to store
and experience multimedia content. Multimedia is distinguished from mixed
media in fine art; by including audio, for example, it has a broader scope.
The term ‘rich media’ is synonymous for interactive multimedia.
Hypermedia can be considered one particular multimedia application.

• Multimedia presentations may be viewed by person on stage, projected,
transmitted, or played locally with a media player. A broadcast may be a
live or recorded multimedia presentation. Broadcasts and recordings can
be either analogue or digital electronic media technology. Digital online
multimedia may be downloaded or streamed. Streaming multimedia may
be live or on-demand.

• Multimedia games and simulations may be used in a physical environment
with special effects, with multiple users in an online network, or locally
with an offline computer, game system, or simulator.

• The various formats of technological or digital multimedia may be intended
to enhance the users’ experience, for example to make it easier and faster
to convey information. Or in entertainment or art, to transcend everyday
experience. Enhanced levels of interactivity are made possible by
combining multiple forms of media content. Online multimedia is
increasingly becoming object-oriented and data-driven, enabling
applications with collaborative end-user innovation and personalyzation
on multiple forms of content over time. Examples of these range from
multiple forms of content on Web sites like photo galleries with both images
(pictures) and title (text) user-updated, to simulations whose co-efficient,
events, illustrations, animations or videos are modifiable, allowing the
multimedia ‘experience’ to be altered without reprogramming. In addition
to seeing and hearing, Haptic technology enables virtual objects to be
felt. Emerging technology involving illusions of taste and smell may also
enhance the multimedia experience.

4 Network Access Equipment

 

Hubs: All networks (except those using coaxial cable) require a central location

to bring media segments together. These central locations are called Hubs.
Hubs are special repeaters that overcome the electromechanical limitations of
a media signal path.

There are three types of Hubs:

               1. Passive Hub: A passive hub simply combines the signals of network
                                          segments. There is no signal regeneration.
               2. Active Hub: Active hub is that which regenerates of amplifies the
                                          signals.
              3. Intelligent Hub: Intelligent hub regenerates the signal and performs
                                          some network management and intelligent path selection.

Switches: It supports transmitting receiving and controlling traffic with other
computers on the network. MAC (Media Access Control) address is hard-coded
on the card by manufacture. This MAC address is globally unique.

Comparison of Hub and Switch

 

• Hub is broadcasting device while switch is point-to-point communication
device.

• Hub operates at physical layer while switch operates at data link layer.

• Switch can be used as a repeater but hub cannot be used as repeater.

• Switch uses switching table to find out the correct destination while hub
simply broadcasts the incoming packet.

Repeaters: Repeaters (refer to Figure (B)) are devices that operate at the
physical layer of the OSI model. The basic purpose of a repeater is to extend the

 distance of LAN. Their primary purpose is simply to regenerate a signal
received from input and correct the signal to its original state for output.

                                                  Figure (B) Repeater

Network Interface Card (NIC): The primary function of NIC is to allow the
computer to communicate on the network. It supports transmitting, receiving
and controlling traffic with other computer on the network. NIC operates at
physical layer of OSI model. MAC address is hard coded onto the card by
manufacturer. This MAC address is globally unique and is of 48 bits. The MAC
address provides a way to distinguish one NIC from other NIC. These MAC
addresses are also called physical address.

Bridge: A bridge (Figure (C)) is a device that is attached to two or more
LANs to create an extended LAN. The LANs to be interconnected may be similar
or dissimilar. As each type of LAN has different MAC frame structure, the bridge
takes care of these differences by reformatting the frames.

                                                           Figure (C) Bridge

Router: A router (Figure (D)) operates at the third network layer of ISOOSI
model. It connects more than two different types of network. Router
determines the short path between source and destination for data transmission.

                                                                Figure (D) Router

bellow table shows the similarities and differences between a router and a
bridge.

 

5 Network Cables

Network cables are the medium through which information generally travels
from one node/network device to another. There are many types of cables which
are used for computer network. In some cases, a network will utilize only one
type of cable, while other networks will use a variety of cable types. The type of
cable chosen for a network is related to the network’s topology, protocol, and
size. Understanding the characteristics of different types of cable and how they
relate to other aspects of a network is necessary for the development of a
successful network.

There are following types of cables used in networks and other related
topics.

• Fibre optic cable
• Cable installation guides
• Wireless LANs
• Unshielded Twisted Pair (UTP) cable
• Shielded Twisted Pair (STP) cable
• Coaxial cable

Fibre optic cable

 

 

Fibre optic cabling ( Figure (E)) consists of a centre glass core surrounded
by several layers of protective materials. It transmits light rather than electronic
signals eliminating the problem of electrical interference. This makes it ideal for
certain environments that contain a large amount of electrical interference. It is
also the standard for connecting networks between buildings, due to its immunity
to the effects of moisture and lighting.

Fibre optic cable has the capability to transmit signals over much longer
distances than coaxial and twisted pairs. It also has the capability to carry

information at superior speeds. This capacity broadens communication
possibilities to include services such as video conferencing and interactive
services. The cost of fibre optic cabling is comparable to copper cabling; however,
it is more difficult to install and modify.

The centre core of fibre cables is made from glass or plastic fibres. A
plastic coating then cushions the fibre centre, and kevlar fibres help to strengthen
the cables and prevent breakage. The outer insulating jacket is made of teflon
or PVC.

                                                       Figure (E) Fibre Optic Cable


There are two common types of fibre cables— single mode and multimode.
Multimode cable has a larger diameter; however, both cables provide high
bandwidth at high speeds. Single mode can provide more distance, but it is
more expensive.

Installing cable—some guidelines

 

When running cable, it is best to follow a few simple rules:

• If it is necessary to run cable across the floor, cover the cable with cable
protectors.

• Label both ends of each cable.

• Use cable ties (not tape) to keep cables in the same location together.

• Always use more cable than you need. Leave plenty of slack.

• Test every part of a network as you install it. Even if it is brand new, it may
have problems that will be difficult to isolate later.

• Stay at least 3 feet away from fluorescent light boxes and other sources
of electrical interference.

Wireless LANs 

 

                                                     Figure (F) Wireless LANs

Wireless LANs use high frequency radio signals, infrared light beams, or
lasers to communicate between the workstations, servers, or hubs. Each
workstation and file server on a wireless network has some sort of transceiver/
antenna to send and receive the data. Information is relayed between
transceivers as if they were physically connected. For longer distances, wireless
communications can also take place through microwave transmission, cellular
telephone technology or by satellite.

Wireless networks are great for allowing laptop, desktop, portable devices,
or remote computers to connect to the LAN. Wireless networks are also beneficial
in older buildings where it may be difficult or impossible to install cables.
The two most common types of infrared communications used in schools
are line-of-sight and scattered broadcast. Line-of-sight communication means
that there must be an unblocked direct line between the workstation and the
transceiver. If a person walks within the line-of-sight while there is a transmission,
the information would need to be sent again. This kind of obstruction can slow
down the wireless network. Scattered infrared communication is a broadcast of
infrared transmissions sent out in multiple directions that bounces off walls and
ceilings until it eventually hits the receiver. Networking communications with
laser are virtually the same as line-of-sight infrared networks.

Advantages of wireless networks: 

• Cost: Setting up a wireless network can be much more cost effective than
buying and installing cables.

• Expandability: Adding new computers to a wireless network is as easy as
turning the computer on (as long as you do not exceed the maximum
number of devices).

• Mobility: With a laptop computer or mobile device, access can be available
throughout a school, at the mall, on an airplane, etc. More and more
businesses are also offering free Wi-Fi access (‘Hot spots’).

• Fast setup: If your computer has a wireless adapter, locating a wireless
network can be as simple as clicking ‘Connect to a Network’—in some
cases, you will connect automatically to networks within range.

Disadvantages of wireless networks:

 

• Inconsistent connections: How many times have you said to yourself,
‘Wait a minute, I just lost my connection?’ Because of the interference
caused by electrical devices and/or items blocking the path of transmission,
wireless connections are not nearly as stable as those through a dedicated
cable.

• Speed: The transmission speed of wireless networks is improving;
however, faster options (such as gigabit Ethernet) are available via cables.
If you are only using wireless for Internet access, the actual Internet
connection for your home or school is generally slower than the wireless
network devices, so that connection is the bottleneck. If you are also
moving large amounts of data around a private network, a cabled
connection will enable that work to proceed much faster.

• Security: Protect sensitive data with backups, isolated private networks,
strong encryption and passwords, and check network access traffic to
and from the wireless network.

• Interference: Because wireless networks deploy radio signals and similar
techniques for transmission, they are vulnerable to intrusion from lights
and electronic devices.

Unshielded Twisted Pair

 

Twisted pair cabling comes in two varieties: shielded and unshielded. Unshielded
twisted pair (UTP) is the most popular and is generally the best option for school
networks.

                                               Figure (G) Unshielded Twisted Pair

The quality of UTP (refer to Figure(G)) may range from telephone-grade
wire to extremely high-speed cable. This cable has four pairs of wires inside the
jacket. Each pair is twisted with a different number of twists per inch that helps
to eliminate interference from adjoining pairs and other electrical devices. The
Electronic Industry Association/Telecommunication Industry Association
(EIA/TIA) has set standards of UTP and rated six categories of wire, which are
as follows. 

 

Unshielded Twisted Pair connector

 

The standard connector for unshielded twisted pair cabling is known as RJ-45
connector ( Figure (H)). This is a plastic connector that looks like a large
telephone-style connector. A slot allows the RJ-45 to be inserted only one way.
RJ stands for Registered Jack, implying that the connector follows a standard
borrowed from the telephone industry. This standard assigns which wire goes
with each pin inside the connector.

                                                      Figure (H) RJ-45 Connector

Shielded Twisted Pair (STP) cable

 

UTP cable is the least expensive cable; it may be disposed to radio and electrical
frequency interference (it should not be too close to electric motors, fluorescent
lights, etc.). If you must place cable in environments with lots of potential
interference, or if you must place cable in extremely sensitive environments
that may be susceptible to the electrical current in the UTP, shielded twisted
pair may be the solution. Shielded cables can also facilitate to extend the
maximum distance of the cables.

       Shielded twisted pair cable is available in three different configurations:

              1. Each pair of wires is individually shielded with foil.

              2. There is a foil or braid shield inside the jacket covering all wires.

              3. There is a shield around each individual pair, as well as around the
                   entire group of wires.

Coaxial cable

Coaxial cable ( Figure(I)) has a single copper conductor at its centre. A
plastic layer provides insulation between the centre conductor and a braided
metal shield. The metal shield facilitates to block any outside interference from
fluorescent lights, motors, as well as other computers.

                                               
                                                          Figure (I) Coaxial Cable

 
Coaxial cabling is not easy to install, but it comes with the advantage of
being highly resistant to signal interference. Also, it can support greater cable
lengths between network devices than twisted pair cable. The two types of
coaxial cabling are thick coaxial and thin coaxial.

Thin coaxial cable is known as thinnet. 10Base2 refers to the specifications
for thin coaxial cable moving Ethernet signals. The 2 refers to the approximate
maximum segment length being 200 metres. The maximum division length is
actually 185 metres. Thin coaxial cable has been popular in school networks,
particularly linear bus networks.

Thick coaxial cable is known as thicknet. 10Base5 refers to the
specifications for thick coaxial cable carrying Ethernet signals. The 5 refers to
the maximum division length being 500 metres. Thick coaxial cable has an
extra protective plastic cover that helps keep moisture away from the centre
conductor. This creates thick coaxial a great choice when running longer lengths
in a linear bus network. One disadvantage of thick coaxial is that it is not easily
bendable and quite difficult to install.

Coaxial cable connectors

A most common type of connector used with coaxial cables is the Bayone-Neill-
Concelman (BNC) connector ( Figure (J)). There are different types of
adapters for BNC connectors, including a T-connector, barrel connector, and
terminator. Connectors are the most vulnerable points in any network. To help
avoid problems, always use the BNC connectors that ‘screw’ onto the cable.

                   
                                                             Figure (J) BNC Connector

6 Broadband Telecommunication 

In general, broadband refers to telecommunication where a wide band of
frequencies is available to transmit information. There is wide range of
frequencies available, and information can be multiplexed and sent on many
different frequencies or channels within the band simultaneously. This way, more

information can be transmitted in a shorter duration of time than what is
achievable with older methods of transmission.

One of the configurations that have been around for a number of years is
the integrated services digital network, or ISDN. This network design can be
used to relay voice and data over copper telephone lines. This may not be the
fastest option in fashion today; however, it does make it possible to access the
Internet without the requirement of a high-speed connection or a lot of resources.
Another common example is the asynchronous transfer mode, referred
to in the telecommunications world as ATM. This option is much quicker than
ISDN and has proven to be extremely handy for companies relying heavily on
the Internet and electronic communications.

Asynchronous Transfer Mode, (ATM), is a network technology based on
transferring data in cells or packets of a fixed size. The cell used with ATM is
smaller compared to units used with older technologies. This size of the cell
allows for an advantage—ATM equipment can transmit video, audio, and
computer data over the same network, and guarantee that no single type of
data clutters the line.

Some people opine that ATM is the definitive answer for the Internet
bandwidth problem; others and not so confident. ATM creates a fixed or route
between two points whenever data transfer begins. This differs from TCP/IP,
where messages are divided into packets and each packet can take a different
route from source to destination. This difference makes it easier to track and bill
data usage across an ATM network, but it renders it less adaptable to sudden
increases in network traffic.

Integrated Service Digital Network

Integrated Service Digital Network, (ISDN), is the original high-speed Internet
service. It sparked the high-speed Internet development between service
providers during the 1990s and, of course, revolutionized Internet use. Much
like its predecessor, the dial-up Internet service, ISDN utilizes a phone line. In
fact, it set the standard for telephone data service.

ISDN Internet service was the improvement upon dial-up, and it also paved
the way for DSL and cable-modem Internet service thereafter. It can be
considered the step of Internet evolution that lies between dial-up and DSL/
Cable. Modernizing Internet use and bringing high-speed access inside the
home, ISDN became the standard by which rival broadband Internet service
providers competed. Although ISDN Internet service still exists, like the dial-up

connection it is being replaced by faster and cheaper services that the broadband
companies are providing. Regardless, broadband high-speed Internet service
is still compared with ISDN today, since they both represent the benchmark of
their times.

ISDN Internet service is basically a telephone-based network system that
operates by a circuit switch, or dedicated line, and is capable of transmitting
data and phone conversations digitally over normal telephone wires. This makes
it both faster and of higher quality than dial-up Internet service. During the 1990s
this revolutionized the way people did business. No longer would you have to
miss a call in order to access your Internet, or shut down the Internet to make a
telephone call. As such, ISDN Internet service made video teleconferencing not
only possible, but very popular as well.

There are two different types, or lines, of ISDN Internet service.

• The first is a basic rate ISDN line. Called a Basic Rate Interface
(BRI), this line has two data, or bearer, channels that operate at 64
kbit/sec. Two or more ISDN-BRI lines can be combined as well,
yielding speeds of 256 kbit/sec. It is common to combine these lines
for video conferencing use or for transmitting data at higher speeds.

• The second type of ISDN line is called a primary rate line, or Primary
Rate Interface (PRI). This line had 23 bearer channels and has a
total speed of 1,544 kbit/sec. It is used mostly for telephone
communication rather than data transmission, particularly within
companies that have large, private telephone exchange systems
operating inside their business.

The advantages of having ISDN Internet service definitely lies in the data
lines themselves. Not only do you have constant data speed via these lines,
each bearer channel runs at 64 kbit/sec with the ability to be combined to reach
greater speeds. ISDN Internet serviced also facilitates multiple data transmission,
so telephone calls and data downloading are no longer mutually exclusive. The
disadvantages, however, is that the digital clarity of ISDN voice communication
and its speedy data transmission come at an extra cost. ISDN is billed like a
phone line, but with an extra cost for service. Although its operational distance
from the ISDN central office is greater than that for DSL, its terminal adaptor
(similar to a modem) costs more than DSL or cable modems. While this
equipment and service continue to remain exorbitant, it is leaving the way open
for other Internet services to share the marketplace.

Frame Relay

Frame Relay is a digital connection-oriented data service that sends packets of
data, called frames, over the network. This frame of data is transmitted through
the network and checked for errors. Frame Relay is designed for cost-efficient
data transmission for intermittent traffic between local area networks (LAN-to-
LAN) and between end-points in a wide area network (WAN). It is a data network
service bundled with leased line access for transmitting data between remote
networks. Frame Relay is a digital packet network service that provides all the
features and benefits of a dedicated network service without the expense of
multiple dedicated circuits. This data is carried in the form of packets and given
an ID on a per packet basis. It is then sent across the network in a very efficient
way. In a Frame Relay network, circuits are connected to a packet switch within
the network that ensures that packets are routed to the correct location. Frame
Relay is a digital dedicated service that is leased from a carrier. It is a switched
service.

Application-level security

• Web applications can be protected from ‘SQL Injection Attacks’ where
the attacker enters SQL commands into Web form input fields or URL
query strings to try to manipulate the SQL statement being sent to and
from the database. To avoid SQL injection attacks, the following methods
should be used:

o Use of queries or stored procedures to access a database as opposed
to using string concatenation

o Limitation the amount of characters in Web form input fields and
URL query strings to a proper amount

o Validate text input and URL query strings for improper characters
(e.g. apostrophe, dash)

o Do not display errors to the user that contain information about the
database or actual source code

• ASP.Net Web applications must be secured from ‘Cross Site Scripting’
(XSS) attacks. To accomplish this, developers must ascertain that the
ASP.Net ‘validateRequest’ Page directive is set to True (the default setting)
so that users of the application are prevented from entering HTML or
JavaScript code into Web forms.

Data transmission security

When confidential or important data is passed between the user and the Web
server, the HTTPS (SSL over HTTP) protocol will be used. SSL provides server
authentication, data encryption (‘over the wire’), and data transmission integrity.
The SSL certificate used on the Web server will need to be ‘trusted’ by the Web
browsers listed on the CDE’s Minimum Web Browser Requirement Web page.

Database security

• Web applications should use minimum privileges to access database
objects (i.e. tables, views, stored procedures). For instance, if the Web
application needs read-only access to a specific database table, the
database permissions should be set accordingly than giving the Web
application ‘admin or owner’ rights to the entire database.
• Individual database fields storing confidential or sensitive data (for
example, passwords, social security number) must be stored using
encryption techniques.

Password requirements

Passwords whether created by application developers, administrators, or users
must meet or be required through validation to meet all of the following
parametres. Passwords must:
• Be at least eight characters in length.
• Contain characters from three of the following four categories:
o Uppercase letters (A though Z)
o Lowercase letters (a through z)
o Numbers (0 through 9)
o Special characters (!, @, #, $, ^, &, *, -, =, _, +, ?)
• Not be the same as the logon or user name.

Special note:-

• Common Gateway Interface (CGI): Process used to share the data
between the web server and the web browser

• Hubs: Central locations in networks that bring media segments together

• Repeaters: devices that operate at the physical layer of the OSI model,
whose basic purpose is to extend the distance of LAN

• Bridge: Device that is attached to two or more LANs to create an extended
LAN

• Router: Operates at the third network layer of ISO-OSI model and
connects more than two different types of network

• Network cables: Medium through which information generally travels
from one node/network device to another

• Fibre optic cable: Cable that consists of a centre glass core surrounded
by several layers of protective materials, and which transmits light rather
than electronic signals

• Wireless LANs: LANs that use high frequency radio signals, infrared
light beams, or lasers to communicate between the workstations, servers,
or hubs

• Line-of-sight communication: Communication through unblocked direct
line between the workstation and the transceiver