The Institute of Finance Management

E-Business Operations
ITU 08509
business. technology. society.

Third Year BAC, BBF and BTX

Mugyabuso, M.L.
2024-2025
Copyright © 2007 Pearson Education, Inc. Slide 1-1
 Lecture 3:
E-Business Infrastructure and
Technology

Copyright © 2007 Pearson Education, Inc. Slide 1-2

Expected Learning Outcome:

Understand and apply knowledge of the

technological infrastructure that supports e-
business activities, including hardware, software
and networking.

Slide 3-3
The Internet: Technology Background
 Internet
 An interconnected network of thousands of networks
and millions of computers, linking businesses,
educational institutions, government agencies, and
individuals
 World Wide Web (Web)
 One of the Internet’s most popular services, providing
access to over 50 billion Web pages

Slide 3-4
The Evolution of the Internet 1961—The
Present
 History of Internet can be segmented into
three phases:
 Innovation Phase
 Institutionalization Phase
 Commercialization Phase

Slide 3-5
The Internet: Key Technology Concepts

 Federal Networking Council definition of

Internet highlights three important concepts
that are the basis for understanding the
Internet:
 Packet switching
 TCP/IP communications protocol
 Client/server computing

Slide 3-6
Packet Switching
 Packet switching: Method of slicing digital
messages into packets, sending the packets
along different communication paths as they
become available, and then reassembling the
packets once they arrive at their destination
 Uses routers (special purpose computers that
interconnect the computer networks that make up
the Internet and route packets) and routing
algorithms to ensure packets take the best
available path toward their destination

Slide 3-7
TCP/IP
 Transmission Control Protocol (TCP):
 Establishes the connections among sending and
receiving Web computers, handles the assembly
of packets at the point of transmission, and their
reassembly at the receiving end
 Internet Protocol (IP):
 Provides the Internet’s addressing scheme
 TCP/IP divided into four separate layers:
 Network Interface Layer
 Internet Layer
 Transport Layer
 Application Layer
Slide 3-8
The TCP/IP Architecture and Protocol Suite
Figure 3.4, Page 130

Slide 3-9
Slide 2-10
Internet (IP) Addresses
 IPv4:
 32-bit number expressed as a series of four
separate numbers marked off by periods, such as
201.61.186.227
 IPv6:
 128-bit addresses; able to handle up to 1
quadrillion addresses (IPv4 can only handle 4
billion)

Slide 3-11
Routing Internet Messages: TCP/IP and
Packet Switching
Figure 3.5, Page 131

Slide 3-12
Domain Names, DNS, and URLs

 Domain name
 IP address expressed in natural language
 Domain name system (DNS)
 Allows numeric IP addresses to be expressed in
natural language
 Uniform resource locator (URL)
 Addresses used by Web browsers to identify
location of content on the Web

Slide 3-13
Client/Server Computing
 Model of computing in which very powerful
personal computers (clients) are connected in
a network with one or more server computers
that perform common functions for the clients,
such as storing files, software applications,
etc.

Slide 3-14
The Internet Today

 Client/server computing model, coupled with

hourglass, layered architecture has allowed
Internet to handle explosive growth without
disruption
 Hourglass/layered architecture – 4 layers:
 Network Technology Substrate
 Transport Services and Representation Standards
 Middleware Services
 Applications

Slide 3-15
The Hourglass
Model of the
Internet

SOURCE: Adapted from Computer

Science and Telecommunications
Board (CSTB), 2000.

Slide 3-16
The
Hourglass as
we see it in
our daily
usage.

Slide 2-17
Internet Network Architecture
 Backbone: High-bandwidth fiber-optic cable owned by
a variety of NSPs
 IXPs: Hubs where backbones intersect with regional
and local networks, and backbone owners connect with
one another
 CANs: LANs operating within a single organization that
leases Internet access directly from regional or national
carrier
 ISPs: Lease Internet access to home owners and
businesses

Slide 3-18
Broadband Service Choices
 Digital Subscriber Line (DSL): High-speed
access through ordinary telephone lines
 Cable modem: Piggybacks digital access to
Internet on top of analog video cable line
 T1 and T3: International telephone standards
for digital communication; offer guaranteed
delivery rates
 Satellite: high-speed downloads, slower
uploads

Slide 3-19
Slide 2-20
 Insight on Society: Government
Regulation of the Internet
Class Discussion
 How is it possible for any government to “control” or
censor the Web?
 Does the Government, have the right to censor
content on the Web?
 How should Business companies deal with
governments that want to censor content?
 What would happen to e-business if the existing Web
split into a different Web for each country?

Slide 3-21
The Future Infrastructure
 From communication and shopping to
education and entertainment, it has significantly
changed the way we live, work, produce and
consume.
 Since its birth in the late 1960s, the internet has
evolved rapidly and celebrated many
milestones.
 Billions of people are now connected all around
the globe through computers, tablets,
smartphones, and other devices.
 For many, life without internet has become
unthinkable.

Slide 3-22
The Current
Future of
Internet
Infrastructure

Slide 2-23
The Milestones of Internet

 New forms of communication

 Mixed realities
 Artificial Intelligence
 The rise of 5G and 6G
 The metaverse

Slide 3-24
Challenges of the future
 Security & privacy
 Accessibility
 Sustainability
 Ethics

Slide 3-25
4 New Technologies Making Waves in the E-
business Sector
 Chatbots. computer program that uses artificial
intelligence (AI) and natural language processing (NLP)
to understand customer questions (e.g ChatGPT)
 Mobile Platforms. those that allow software and
services to be run on devices. (e.g Android, Window)
 Augmented/Virtual Reality. an interactive
experience that enhances the real world with computer-
generated perceptual information.
 Artificial Intelligence. the simulation of human
intelligence processes by machines, especially
computer systems.

Slide 2-26
E-business and E-Commerce Infrastructure
E-business Infrastructure Overview

Slide 2-27
In Summary

Slide 3-28
Next:

Launching a successful E-Business

Presence.

Slide 3-29
Class Discussion / Tutorial Questions

 Explain the components of e-business

infrastructure, including hardware, software,
networking, and cloud technologies.
 Design and recommend appropriate
technological solutions to support e-business
operations.
 Evaluate the effectiveness and scalability of
technological solutions in supporting business
growth and innovation.

Slide 3-30