E-Commerce

Unit-3 Network Infrastructure of E-Commerce

Network Infrastructure of E-Commerce

Here we will be considering following issues
Introduction to information superhighway (I-way) components of I-way internet as network infrastructure

Information Super Highway

To become a reality, e-commerce needs a network infrastructure to transport the content. Also known as the electronic, interactive , or multimedia superhighway, the I-way has become the leading buzzword that has no precise definition. It describes the high-capacity (broadband), interactive (two-way) electronic pipeline to the home or office that is capable of simultaneously supporting a large number of e-commerce applications and providing interactive connectivity between users and services between users and other users

Information Superhighway
Historically, the voice and data networks have evolved separately, with voice networks relying on circuit switching and data networks using packet switching techniques. Thus, a business user requiring voice, data, and video conferencing services often had to use three separate networks- a voice network, a data network, and a videoconferencing network. I-way provides integration solution to the shortcoming of the need to have separate network for voice, data and video services respectively Its impact is seen in different sectors
Telephone operators Cable TV operators Computer manufacturers TV manufacturers

Market Forces influencing the I-way

Demand and participants Requirements of market

Strategic alliances and the I-Way Infrastructure

Market Forces influencing the I-way

Demand and participants Requirements of market

The Success and failure of any innovation, product or service is a factor of market forces. Here the focus is on the forces that are influencing the construction of the I-way. The boundaries among communication, entertainment and information are not absolute. For instance, video is a part of information, entertainment, and communication The boundaries among equipment are not absolute as the new device for telephony, entertainment, and data all interact.

Market Forces influencing the I-way

Demand and participants Requirements of market

Predicting the most successful form and function of the infrastructure requires examining the overlap between user roles and conflicting technical perspectives brought forth by the companies competing to create, support and exploit specific component of information infrastructure. The I-way can support a variety of applications: ondemand publishing, real-time video conferencing, including distance learning, telemedicine, telemarketing- where individual work from home

Market Forces influencing the I-way

Demand and participants Requirements of market

The demand and requirements various participants place on the network infrastructure are bound to be very difficult.

Market Forces influencing the I-way

Strategic alliances and the I-Way Infrastructure
To achieve construction of a broadly useful I-way, strategic planning should take into account the needs of the communication, entertainment, and the information sector. However, the resource requirement of building these three segments of I-way are driving companies to make maximum use of existing facilities through alliances to control costs and create test markets. Alliances particularly among large firms are dominant for several reasons. They reduce risks, spread costs and allow firms to acquire costly expertise in different areas instantly.

Market Forces influencing the I-way

Strategic alliances and the I-Way Infrastructure
Major of the alliances are between telcos and cable companies Possible alliances of companies in
Cable operators, telcos,computer hardware manufacturers, software developers, instrument manufacturers, etc..

I-way Components
Telecom-Based Infrastructure Customer/ Business premises equipment Cable TV-Based Infrastructure Wireless Infrastructure Commercial Online Infrastructure Backbone Communications and Satellite Networks

Network Access Equipment

Local communication

Global Information Distribution Network

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 Consumer Access Equipment

I-way

This segment of the I-way includes hardware and software vendors, who provides physical devices such as routers and switches, access devices such as computers & software like browsers and OS. Set-Top Boxes Computer based telephony Digital Switches, Routers and Hubs

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I-way
Local or access roads
It simplifies linkage between businesses, schools, and homes to the communication backbone. Business must give careful consideration to the application deployed or accessed, objectives and costs, and security and privacy Telecom based last mile Cable TV based last mile
Wired cable TV Wireless cable TV

Radio based Wireless Last Mile Commercial on-line services based last mile

I-way
GIDN (Global Network): Information Distribution
Represent the infrastructure criss-crossing countries and continents Most of the infrastructure for I-way already exists in the vast network of fiber optic, coax, radio waves, satellite and copper wires spanning the gloves. Long distance Networks Satellite Networks
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Public policy issues shaping I-way

Seven major issues
Cost Subsidies Allocation of scarce resources Regulation Universal access Privacy Social issues

Public policy issues shaping I-way

Public policy and global connectivity
Access to Local Infrastructure Global Subsidies Cost and pricing of Universal Transmission Capacity Adoption of Technology Standards

Access

Is E-Business and ECommerce all about the Internet?

No, the basic foundation for e-business can be laid without the Internet. Its all about connecting your offices, suppliers, retailers and streamlining your processes. Its about letting your left hand know what your right hand is doing and extending it to your customers. Thats it. Later when you feel youre ready or interested in reaching millions of customers, the Internet may be your answer.

But is it for me?

Of course, Today you can buy garments, music, magazines, movie tickets and even vegetables on the net. Many companies keep their branch offices and employees informed of the latest developments whether internal or external through an intranet or even simple E-mail. No matter what the nature and size of your business, companies like IBM, Oracle etc.have ready solutions which will make it more cost effective.

Is it safe?
Nobody would want to get into something that wasnt secure. So when you are ready for e-business youll find that many organizations have developed solutions like Real Time Intrusion Detection and Anti Virus software. These along with personal codes and passwords make sure that any transaction that takes place or any information that is shared is seen only by the people its meant for.

Will I have to change my existing setup?

Certainly not! Theres no problem even if you are using different hardware and software systems to do your work today. There are companies that will help them all work together, using cross-platform technologies like Java to build smoothly integrated, open e-business solutions that work with both IBM and non-IBM technology. It would be easier for you if your system is scalable. Because then you can add to it as your business grows.

In Future
While E-Commerce may not completely replace other forms of Commerce, it is likely to be the dominant mode of the commercial transactions in the future. Colleges and Schools including Business Schools should reflect this trend in the curriculum to train the future generation of Managers.