Accounting information system an overview 9e bodnar hopwood chapter 03

Electronic Commerce

Chapter 3

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Learning Objective 1

Explain the history of the
Internet and how it works.

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Electronic Networks
Electronic networks are groups of computers
that are connected together electronically.
Local area networks (LANs) are
networks that span a single site.
Metropolitan area networks (MANs)
span a single city or metropolitan area.
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Electronic Networks
Wide area networks (WANs)
are networks of computers
that span at least two
metropolitan areas.

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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The Internet
The Internet is an electronic highway that allows
computers to communicate with each other.
The earliest practical version of the Internet was
created in the early 1970s by the Pentagon’s
Advanced Research Projects Agency (ARPA).
It was called ARPANET.
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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The Internet

Bitnet

MILnet

NSFnet

They adopted a common set of communications
protocols called TCP/IP (Transmission Control
Protocol/Internet Protocol).
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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The Internet
Transmission Control Protocol (TCP) divides
electronic messages into “packets” of information
and then reassembles these packets at the end.
Internet Protocol (IP) assigns a unique
address to each computer on the Internet.

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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The Internet
Fixed IP address
Dynamic IP address
Domain name
Domain name servers
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Learning Objective 2

Describe intranets and explain
how they are made secure.

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Intranets

It is a self-contained, in-house internet.
Extranets exist when the intranets of two
or more companies are linked together.

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Intranet Security Issues
The Internet

Corporate Intranet

Network
computers

Firewall
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Intranet Security Issues
Firewalls can be defeated.
An attacker can assume a false
identify such as a false IP address.
What are additional layers of defense?
Access limits through password control
Encryption

Proxy servers

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Learning Objective 3

Explain client-server technology
and how it applies to electronic
financial transactions.

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Commerce on the Internet

It is a robot-type program that
constantly runs on some computers
and exchanges information with clients.

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Commerce on the Internet
What is a client?
It is a program that accesses and
exchanges information with a server.
A great many of the business transactions
that occur on the Internet take place
in client-server environments.

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Commerce on the Internet
Being robots, servers don’t get paid by the
hour and don’t require fringe benefits.
Servers can deal with hundreds

of users (clients) at one time.
Servers can be accessed at any time of day,
anywhere in the world, with no
per-minute communication charges.
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Types of Servers
There are many kinds of servers on the Internet:
Mail servers

File servers

Web servers

Commerce servers

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Types of Servers
Mail Server
Sender’s
mail
client

Receiver’s
mail
client

Message
sender

Message
receiver
Sender’s
mail
server

Receiver’s
mail
server
The Internet

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Types of Servers
What are file servers?
They allow authorized clients to
retrieve files from libraries of files
that exist on remote computers.
The most common protocol
for file serves is called FTP.

A file server that uses this
protocol is called an FTP server.
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Types of Servers
What is a Web server?
It is a server that allows a user (client)
to access documents and run computer
programs that reside on remote computers.
All Web clients automatically
read and interpret HTML
(hypertext markup language).
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Types of Servers
Hyperlinked Documents
Hyperlink

World Wide Web
document on
server in Chicago
World Wide Web
document on
server in San Diego

World Wide Web
document on
server in Tokyo

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Types of Servers

They are specialized types of Web servers
with various commerce-related features.
Support for the secure electronic
transaction (SET) protocol

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Types of Servers
Support for specialized types of
client and server authentication
Support for interfacing
with “external” programs
Enhanced security features
Online credit card or
bank verification
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Types of Servers
Bank
Order/payment
information

Encrypted
communication
link

Consumer’s
Consumer’s
client
client

Internet

Verify
payment
Commerce
Commerce
server
server

Product information
and order verification
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Types of Servers

Corporate
Corporate
accounting
accounting
system
system

Commerce
Commerce
server
server

Goods shipped
to customer

Shipping
Shipping

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

Order
Order
file
file

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