BBA 3331, Introduction to E-commerce 1 Course Learning Outcomes for Unit III Upon completion of this unit, students should be able to: 4. Explain the four infrastructures influencing e-commerce strategy. 4.1 Discuss the origins and key technologies behind the Internet. 6. Examine the combination of variables that make up a site's architecture. 6.1 Explain the structure of the Internet. Course/Unit Learning Outcomes Learning Activity 4.1 Unit Lesson Chapter 3 Unit III PowerPoint Presentation 6.1 Unit Lesson Chapter 3 Unit III PowerPoint Presentation Reading Assignment Chapter 3: E-commerce Infrastructure: The Internet, Web, and Mobile Platform Unit Lesson This unit’s lesson provides a wide overview of the Internet’s infrastructure. The unit begins with networking and the Internet, and it also covers networking protocols, introduces key communication terms, and outlines the links and switches that make data transport to and from the Internet possible. Internet Infrastructure E-commerce entrepreneurs need to have a good understanding of the infrastructure needed to run and sustain their business models and organizational strategies. Entrepreneurs must be cognizant of the infrastructure needed to sustain their businesses and how the Internet operates to adjust to the demands of the e-commerce markets, but what is the Internet composed of? The Internet is a complex set of public and private networks. The Internet includes hardware and software components as well as services. The nuts and bolts of the Internet are comprised of distributed networks that are connected to each other and offer applications and services. In other words, the public Internet is a set of millions of worldwide computer networks interconnected to one another (Laudon & Traver, 2018). The figure below depicts a company’s network connected to an Internet service provider (ISP). All devices in the Internet infrastructure are referred to as hosts or nodes. Internet applications are services (e.g., e-mail) running in hosts. Examples of programs running in hosts include websites and payment systems, which make e- commerce possible. UNIT III STUDY GUIDE E-commerce Infrastructure BBA 3331, Introduction to E-commerce 2 UNIT x STUDY GUIDE Title These hosts or nodes use protocols to communicate with each other. These protocols control the flow and the sending and receiving of information across the Internet. According to Stallings (1999), the Transmission Control Protocol (TCP) and Internet Protocol (IP) are the central protocols used for communication within the Internet. These protocols are jointly referred to as TCP/IP. Hosts or nodes, such as web servers or personal computers (PCs), connect together in a local area network (LAN), which, in turn, connects to a local or regional ISP (see Figure 1). These communication links used by hosts and routers in a LAN and their connectivity to ...

1. BBA 3331, Introduction to E-commerce 1
Course Learning Outcomes for Unit III
Upon completion of this unit, students should be able to:
4. Explain the four infrastructures influencing e-commerce
strategy.
4.1 Discuss the origins and key technologies behind the
Internet.
6. Examine the combination of variables that make up a site's
architecture.
6.1 Explain the structure of the Internet.
Course/Unit
Learning Outcomes
Learning Activity
4.1
Unit Lesson
Chapter 3
Unit III PowerPoint Presentation
6.1

2. Unit Lesson
Chapter 3
Unit III PowerPoint Presentation
Reading Assignment
Chapter 3: E-commerce Infrastructure: The Internet, Web, and
Mobile Platform
Unit Lesson
This unit’s lesson provides a wide overview of the Internet’s
infrastructure. The unit begins with networking
and the Internet, and it also covers networking protocols,
introduces key communication terms, and outlines
the links and switches that make data transport to and from the
Internet possible.
Internet Infrastructure
E-commerce entrepreneurs need to have a good understanding
of the infrastructure needed to run and
sustain their business models and organizational strategies.
Entrepreneurs must be cognizant of the
infrastructure needed to sustain their businesses and how the
Internet operates to adjust to the demands of
the e-commerce markets, but what is the Internet composed of?
The Internet is a complex set of public and private networks.
The Internet includes hardware and software
components as well as services. The nuts and bolts of the
Internet are comprised of distributed networks that
are connected to each other and offer applications and services.

3. In other words, the public Internet is a set of
millions of worldwide computer networks interconnected to one
another (Laudon & Traver, 2018). The figure
below depicts a company’s network connected to an Internet
service provider (ISP). All devices in the Internet
infrastructure are referred to as hosts or nodes. Internet
applications are services (e.g., e-mail) running in
hosts. Examples of programs running in hosts include websites
and payment systems, which make e-
commerce possible.
UNIT III STUDY GUIDE
E-commerce Infrastructure
BBA 3331, Introduction to E-commerce 2
UNIT x STUDY GUIDE
Title
These hosts or nodes use protocols to communicate with each
other. These protocols control the flow and the
sending and receiving of information across the Internet.
According to Stallings (1999), the Transmission
Control Protocol (TCP) and Internet Protocol (IP) are the
central protocols used for communication within the
Internet. These protocols are jointly referred to as TCP/IP.
Hosts or nodes, such as web servers or personal

4. computers (PCs), connect together in a local area network
(LAN), which, in turn, connects to a local or
regional ISP (see Figure 1). These communication links used by
hosts and routers in a LAN and their
connectivity to ISPs consist of different types of media, which
could include copper wire, coaxial cable, fiber
optics, and radio spectrum. The different types of media
transmit information at different rates depending on
the media type; this transmission rate is referred to as
bandwidth, and it is measured in bits per second (bps).
New entrepreneurs must be acquainted with the type of media
and bandwidth needed in their infrastructures
to run their businesses. Entrepreneurs base the factors driving
this decision on the service or value
proposition element of the company’s business model. As an
example, if the new enterprise will offer hosting
services, it will need a fast and reliable connection to their ISP
to sustain the demands of the new service(s).
Core concepts
(Laudon & Traver, 2018)
The structure of the Internet is loosely hierarchical, which
means that nodes or hosts connect to ISPs through
their corresponding LAN connections. Local ISPs then connect
to regional ISPs, which may connect to
national ISPs or international ISPs. The top-level hierarchy is
composed of both national and international
ISPs, which are also known as Tier 1 providers. Examples of
Tier 1 providers are AT&T, Sprint, Verizon, and
the Zayo Group (Laudon & Traver, 2018).

5. When you connect to the Internet, your device (e.g., PC, laptop,
tablet, smartphone) becomes a part of a local
or wide area network (WAN). Your ISP then provides a
connection to its network. In turn, the ISP connects to
a national network or Internet backbone. In this manner, devices
become a part of the larger Internet. Figure 2
depicts this process.
CORE CONCEPTS
The Internet is composed of millions of connected devices,
including PCs, workstations,
servers, and smartphones, which are communicating using
protocols (e.g., TCP, IP, FTP,
HTTP, PPP) over fiber, copper, coax, radio, and satellite
communication links (Laudon &
Traver, 2018).
Figure 1: A company’s network connected to the Internet
BBA 3331, Introduction to E-commerce 3
UNIT x STUDY GUIDE
Title
Internet Standards
Industry standards seek to establish and describe sets of best
practices for a particular industry (i.e.,

6. communication protocols). Standards create and outline
practices, safeguards, and policies of a particular
activity or system. Generally, the goal of industry standards is
to follow levels of consistency across the board.
As an example, RFC 5321 provides best practices for the use of
Simple Mail Transfer Protocol (SMTP)
extension mechanisms (Klensin, 2008).
Stallings (1999) described that the Internet maintains its
stability and consistency because it adheres to
Internet standards. The Internet Engineering Task Force (IETF)
develops and publishes these standards.
According to Laudon and Traver (2018), the IETF “is an open
international community of network operators,
vendors, and researchers concerned with the evolution of the
Internet architecture and operation of the
Internet” (p. 139). The IETF calls these standards Requests for
Comments (RFCs). These standard
documents seek to solve some of the foundational elements of
the Internet. RFCs are quite technical in
nature and define web protocols such as TCP, IP, and SMTP.
Anyone can submit a draft for an RFC to the
RFC editor. The RFC undergoes extensive vetting for technical
competence, relevance, and proper writing
before considering the possibility for publishing.
Standards are vital, as they do not follow any governmental or
legal mandate. Standards are adopted based
on the market environment as well as compliance requirements,
competitiveness, and industry certification
needs. Lewis (2015) articulated that standards are authored with
a framework or blueprint but are
implemented at the discretion of the industry. Standards are
critical to e-commerce since e-commerce relies
on information and technology that adheres to particular
standards. As an example, e-commerce uses

7. network communication protocols, application integration, and
specific functionalities and features. The three
specific elements—information, communication infrastructure,
and applications—are brought together to
create a unique customer experience, which contributes to brand
preference and customer loyalty.
The Internet and Services
As mentioned in Unit I, the Internet is not the same as the web.
The World Wide Web is composed of
distributed applications, such as websites, multimedia, e-mail,
and interactive sites, running in host systems,
which are interconnected in the Internet infrastructure. Thus,
the web is not a network but a group of
applications using the communication services provided by the
Internet. The web could be run on a LAN
without the Internet. Laudon and Traver (2018) articulated that
intranets are local networks within a single
organization, and intranets use the same technology that the
Internet employs.
The Internet is evolving at a fast pace. As it evolves, it also
experiences significant limitations in its
infrastructure. The limitations are imposed by outdated
infrastructure and the growth of the Internet. It is
challenging to keep up reconstruction or updating of technology
with the rapid development of the global
network. Various elements are significant to the architecture of
the Internet. Laudon and Traver (2018)
Figure 2: What happens when you connect to the Internet?

8. BBA 3331, Introduction to E-commerce 4
UNIT x STUDY GUIDE
Title
outlined four major areas that present challenges to the
continued evolution of the Internet, which are listed
below.
1. Bandwidth limitations: As new Internet applications and
services emerge, which may require higher
speeds, more bandwidth is needed. Internet carriers need to be
prepared to offer additional
bandwidth as the demand will only increase as more services are
switching to the Internet. ISPs need
to be ready to sustain new customers by renovating and/or
keeping up their infrastructures to avoid
future bandwidth limitations that may affect their e-commerce
customers.
2. Quality of service: This area is tightly coupled with
availability of bandwidth. Quality of service refers
to the capability of ISPs to provide better quality of service or
performance to specific traffic on the
network. As an example, voice and video require a high
priority, as they are sensitive to delays; no
one enjoys irregular conversations where words or images are
mixed up or delayed.
3. Network architecture: This refers to the physical connectivity
of the networks comprising the Internet.
As noted in previous paragraphs, the limitations are often

9. introduced by the growth of the Internet as
new applications and services require more bandwidth.
However, the limitations of the architecture
are more evident at the last mile (i.e., the equipment or
hardware needed at the customer’s side for
sufficient bandwidth to travel to the end user’s home).
4. Wired Internet: Most end users are still connecting to the
Internet using a wired connection. Wireless
technologies have not evolved as fast as the Internet. Mobile
networks cannot keep up with the
technologies of smart devices; this is evident by the way mobile
providers limit bandwidth usage for
their subscribers.
Conclusion
E-commerce entrepreneurs must be aware of the challenges
present in the current infrastructure of the
Internet. In building their infrastructure strategies, e-businesses
need to formulate ways to address their
customer expectations for Internet connectivity. Organizations
must have a strategic plan to compensate for
the limitations present in the Internet’s network architecture. As
the Internet keeps evolving, new applications
and services will emerge that will require more bandwidth and
network capabilities for e-commerce business
and customers. It is critical to carefully build and plan for an
infrastructure capable of delivering a successful
customer experience.
Definitions
Please review the common definitions related to the Internet
below. If you would like to check your knowledge

10. of the definitions, try the matching activity, which is available
in the nongraded learning activity.
network line can handle at a given time.
a speed is identified as 10 Mbps, it
means that, given no interruptions, the rate is at 10 Megabits
per second.
connected to the same physical network.
protocols that govern the connection of
computer systems (Stallings, 1999).
protocol used to send and receive e-mail
(Stallings, 1999).
protocol used to view web pages (Stallings,
1999).
the exchange of data files in networks
(Stallings, 1999).
-to-Point Protocol is a communications protocol
used to establish direct connections
between two computing devices (Stallings, 1999).

11. References
Klensin, J. (2008). Simple mail transfer protocol (RFC 5321).
Retrieved from https://tools.ietf.org/html/rfc5321
Laudon, K. C., & Traver, C. G. (2018). E-Commerce 2017:
Business, technology, society (13th ed.). Boston,
MA: Pearson Education.
BBA 3331, Introduction to E-commerce 5
UNIT x STUDY GUIDE
Title
Lewis, T. G. (2015). Critical infrastructure protection in
homeland security: Defending a networked nation (2nd
ed.). Hoboken, NJ: Wiley.
Stallings, W. (1999). Data and computer communications (6th
ed.). Upper Saddle River, N.J.: Prentice Hall.
Learning Activities (Nongraded)
Nongraded Learning Activities are provided to aid students in

12. their course of study. You do not have to submit
them. If you have questions, contact your instructor for further
guidance and information.
For a review of definitions related to the Internet, try the
matching activity that can be accessed by clicking
here.
https://online.columbiasouthern.edu/bbcswebdav/xid-
55375322_1