MODULE 2

TECHNOLOGY INFRASTRUCTURE FOR

E-COMMERCE

In This Module
Lesson 2.1: E-Commerce Infrastructure
Lesson 2.2: E-Commerce Security and Payment Systems
Lesson 2.3: E-Commerce Marketing and Advertising

Module Overview:
Good day everyone! Welcome to Module 2. In the changing world, there is a necessity to improve
the business requirements according to the changing needs of technologies, trends in the market, and
customers. In this module, you will learn all about technology infrastructure for e-commerce.

Module Objective/Outcomes:
Upon completion of this module, you should be able to:
• Analyze how Internet and Web features and services support E-Commerce
• Analyze E-Commerce security threats, security strategies, and explain the features
and functionality of electronic billing presentment and payment systems
• Examine technologies that support online marketing and assess online marketing
communications’ costs and benefits

ELEC 321 E-COMMERCE COURSEPACK Page | 35

 In the changing world, there is a necessity to improve the business requirements according to the
changing needs of technologies, trends in the market, and customers.

Whether you are new to ecommerce or already into ecommerce, your major priority is to increase the
overall efficiency of the organization. When you want to improve efficiency, you must have a strategy and
the right infrastructure to address the needs of the user and flexible enough to satisfy their requirements.
Infrastructure is the foundation that makes your business stand out. Ecommerce infrastructure is a
collection of hardware, software, network, facilities, etc. that you need to run an ecommerce business.

When you have the right infrastructure, you will have an optimized business performance. Here are some
important components that you must consider while planning your ecommerce infrastructure (Laudon &
Traver, 2021).

E-commerce Infrastructure Categorization

1. E-commerce environment: This defines general guidelines and frameworks that will make your
business suitable for running ecommerce. It is a standard like technical tools, legal and regulatory
frameworks, and the involvement of service providers.

2. Infrastructure services: These are the services that specify ecommerce functions. One or more
services will work together to provide functions to the ecommerce business. Services like user
authorization, payment processing, order validation, etc., help in during products checkout by the
user. The infrastructure services can further be classified in terms of the services they provide to
the user or an organization. Network services, directory services, payment services, and security
services are common infrastructure service providers to the user.

3. E-commerce solution providers: They offer an end-to-end solution for ecommerce business who
does not have their implementation team.

E-commerce Infrastructure Components (Nyck, 2023)

E-commerce infrastructure identifies each functionality of the hardware, software, and network with
their key role. When you know about the functionality of the components in ecommerce, then you can
organize the ecommerce platform more efficiently.

a. Hardware. Hardware does several things, which includes allowing you to connect to your
network and have access to the outside world. It allows you to store data, recover and use your
data. Some important hardware components are:

ELEC 321 E-COMMERCE COURSEPACK Page | 36

 • Devices: Computers, hubs, routers, data centers, etc.

• Servers: Server provides the necessary functionality for other programs. It can be a
computer program or a device and can be used for different purposes. Some common
servers are a proxy server, web server, application server, etc.

b. Software. Software components include services like system management tools, analytic tools
for estimating your business and service providers.

• Management services: When you run an ecommerce business you need to manage
various services like content, database and resources. Enterprise resource planning,
content management, and data centers are some software services that help in
managing the resources of the company efficiency.

• Analytics: Ecommerce business is more competitive since it is growing day by day. So,
it's important to analyze your capacity, which helps in improving your system to perform
better. Web analytics and text analytics tools will help in estimating your ecommerce
site.

• Middleware: Middleware is an intermediate between service providers and service

users. It could be data access for components, communication protocols, specialized
servers, or a mix of all.

• API: An application program interface is a protocol or a tool for building the software
applications. It specifies how a software component should interact with each other.

c. Network. Network provides the communication path and services between users, processes,
applications, services, and external networks through the Internet.

• Internet connectivity: Establishing the connection between various devices and

processes.

• Firewalls: Firewalls protect your networks from outside attackers. It enables you to
specify what kinds of traffic are permitted through, adding a layer of security.

• Security services: Even some times firewalls may lack in protecting against the hackers
including security services.

• Load balancer: It uses load balancers to distribute the overall load on your web or
application servers. It also distributes demand according to the kind of task to be
performed.

• DNS: Domain Name System is naming a system for your website. They locate the
internet protocol address for your domain name.

ELEC 321 E-COMMERCE COURSEPACK Page | 37

 Criteria for Choosing Ecommerce Infrastructure

Choosing the right infrastructure to match your e-commerce business strategies enables your
operations to run efficiently and increase your revenue.

1. Flexibility: An ecommerce environment must be easy to manage for all users. They
must have the ability to respond quickly for all the changes and must adapt the new
technologies and features as a scalable factor.

2. Usability: Usability is an important factor while you are choosing the services for
ecommerce platforms. When any one of the services fails, it will cause a major effect
in delivering efficient performance.

3. Scalability: Ecommerce grows rapidly where new technology and services get added
regularly so it needs to have an environment that does not collapse during additional
services. The infrastructure should be scalable in terms of technology, human
recourses, high traffic, etc. Also, the performance of the system should not be slowed
down.

4. Security: Ecommerce business is vulnerable to various sources like hackers, malware,

security attacks, etc. Your infrastructure must allow firewalls to protect your ecommerce
from network attacks and other paid security services.

Effective Planning and Management

As an e-commerce business owner, ignoring the importance of planning and developing an

ecommerce infrastructure is a major failure for a business in the long run. You need to have an infrastructure
based on the needs and priorities of your company. Even managing your ecommerce infrastructure is
challenging, but well-defined planning and management can reduce risk and ensure uptime.

Closure

Congratulations! You have just finished Lesson 2.1. You are now ready for the next lesson.

ELEC 321 E-COMMERCE COURSEPACK Page | 38