ASSIGNMENT-2

SUBMITTED BY ANJANNA MATTA MA08M001

Example-1:

Internet Banking

Definition:
Internet banking refers to systems that enable bank customers to access accounts and general information on bank products and services through a personal computer (PC) or other intelligent device.

Introduction:
Internet banking products and services can include wholesale products for corporate customers as well as retail and fiduciary products for consumers. Ultimately, the products and services obtained through Internet banking may mirror products and services offered through other bank delivery channels. Some examples of wholesale products and services include.

1. 2. 3. 4.

Cash management. Wire transfer. Automated clearinghouse (ACH) transactions. Bill presentment and payment.

Examples of retail and fiduciary products and services include: 1. 2. 3. 4. 5. 6. 7. Balance inquiry. Funds transfer. Downloading transaction information. Bill presentment and payment. Loan applications. Investment activity. Other value-added services.

Cost Efficiencies:
National banks can deliver banking services on the Internet at transaction costs far lower than traditional brick-and-mortar branches. The actual costs to execute a transaction will vary depending on the delivery channel used. For example, according to Booz, Allen & Hamilton, as of mid- 1999, the cost to deliver manual transactions at a branch was typically more than a dollar, ATM and call center transactions cost about 25 cents, and Internet transactions cost about a penny. These costs are expected to continue to decline.

Implementing the technology:

Implementing the technology is the responsibility of management. Management should have the skills to effectively evaluate Internet banking technologies and products, select the right mix for the bank, and see that they are installed appropriately. If the bank does not have the expertise to fulfill this responsibility internally, it should consider contracting with a vendor who specializes in this type of business or engaging in an alliance with another provider with complementary technologies or expertise.

Transaction Risk
Transaction risk is the current and prospective risk to earnings and capital arising from fraud, error, and the inability to deliver products or services, maintain a competitive position, and manage information. Transaction risk is evident in each product and service offered and encompasses product development and delivery, transaction processing, systems development, computing systems, complexity of products and services, and the internal control environment. Software to support various Internet banking functions is provided to the customer from a variety of sources. Banks may support customers using customer-acquired or banksupplied browsers or personal financial manager (PFM) software. Good communications between banks and their customers will help manage expectations on the compatibility of various PFM software products.

Dynamic Decisions
Strategic Plans : The proposed Internet banking business should be a good fit with the institutions strategic business direction and customer demographics. Hosting : One of the major decisions a national bank will have to make is whether to host the service in-house or through an outsourcing arrangement. Functionality : A needs analysis can help the bank determine what products and services should be a part of the new Internet banking business. This should be an ongoing process to ensure the bank remains current with Internet banking technology, products, and services. User Department : The banks user departments should be involved in the outsourcing vendor or software vendor selection process as these individuals will have to work with the system on a daily basis once it is operational. Impact on Earnings and Capital : Bank management should have a projection of the expected impact on earnings and capital of the new Internet banking business. Security : Bank management needs to understand security issues associated with Internet banking products and services. Security issues include how the bank or its outsourcer will authorize users, prevent data interception and unauthorized alteration, and deal with intrusions.

Internal Controls and Audit : Management should determine whether the controls and audit processes are adequate to enable the identification, measurement, and monitoring of risk associated with the Internet banking business. Legal Requirements : Various legal requirements, including compliance issues, need to be understood before initiating an Internet banking business. Since many legal issues are undecided, management will need to monitor developments. Vendor Management : If the bank is researching outsourcers, the analysis should include consideration of potential vendors financial condition, years in the business, and future plans. Contingency planning : Whether provided by the bank or outsourcer, management should have an understanding of contingency planning as part of the due diligence process. Insurance : A review of insurance coverage may be in order especially if the hosting of the Web site has been outsourced. Consultants : The bank should ensure they have the proper level of expertise to make this business decision. The board and senior management may need to enhance their understanding of technology issues. If the expertise is not available in-house, the bank should consider engaging outside expertise.

Conclusion:
E-banking is fast becoming a norm in the developed world, and is being implemented by many banks in developing economies around the globe. The main reason behind this success is the numerous benefits it can provide, both to the banks and to customers of financial services. For banks, it can provide a cost effective way of conducting business and enriching relationship with customers by offering superior services, and innovative products which may be customized to individual needs. For customers it can provide a greater choice in terms of the channels they can use to conduct their business, and convenience in terms of when and where they can use e-banking.

Example-2:
Definition:

E-Business

Electronic Business, commonly referred to as "E-Business", may be defined as the utilization of information and communication technologies in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and so can be seen as one of the essential activities of any business.

Introduction:
A business model is a framework for creating economic, social, and/or other forms of value. The term business model is thus used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.

Business Fields:
There are many business models, e.g., business to business (B2B), business to customer (B2C), customer to customer (C2C), customer to business (C2B), administration to administration (A2A), administration to business (A2B), business to administration (B2A), etc. In this paper we will focus on the most popular models which are (B2B), (B2C) and (C2C), which will be defined below as well:

Business to business(B2B):
This model describes relations between two companies. One company plays the middle role so on one hand it will be the customer (when it buys from the first company) and on the other it will be the provider (when it sells products to consumers).

Business to customer(B2C):
This model describes relations between vendor and many end customers. It grows rapidly in product and service providing sectors, which are standardized and can be delivered via post or in electronic form through the internet .

Customer to customer (C2C):

Person-to-person transaction. It is one of the oldest forms of E-Business. In this model any customer can sell or buy products or services, using an electronic platform (like eBay) or any regular market place.

Three primary processes are enhanced in E-Business: 1. Production processes: Which include procurement, ordering and replenishment
of stocks; processing of payments; electronic links with suppliers; and production control processes, among others.

2. Customer-focused processes: Which include promotional and marketing

efforts, selling over the Internet, processing of customers purchase orders and payments, and customer support, among others

3. Internal management processes: Which include employee services, training,

internal information-sharing, video-conferencing, and recruiting. Electronic applications enhance information flow between production and sales forces to improve sales force productivity. Workgroup communications and electronic publishing of internal business information are likewise made more efficient.

Trust and confidence:

E-business purveyors need to obtain the trust and confidence of their e-customers. Consumers are looking for a trusted e-tailer that will give them the feeling of safety and security the customer is looking for. Because of the nature of the internet and anonymity involved in e-transactions, trust and confidence are critical to obtaining ecustomers and e-customer relationships. Power outages and computer failures contribute to a lack of confidence and mistrust. Significant downtime can do unquantifiable damage to a brand name. Likewise, concerns over misuse of personal data collected through e-business transactions online fraud militate against establishing the necessary trust relationship. Concerns have been raised that aware undermines consumer trust.

Example-3
Definition:

WebShop E-Commerce

WebShop basically allows the creation of online stores from a description of the products that should be offered and sold on a Web site (see Figure 1).

As specific Web stores differ in various aspects, the WebShop framework defines the following variation points:

Payment options: companies accept various payment options, such as credit cards,
electronic money, and so on. Moreover, completely new electronic payment methods may arise and the framework should be able to incorporate them.

Promotions: Promotions usually depend on parameters such as the overall shopping

volume of a customer or the frequency a customer comes along. For example, a bookstore site might send a gift at the end of the year if the sales volume of a customer has surpassed a certain limit. Another example would be to freely upgrade to a faster delivery, if a customer buys goods for a greater value amount. WebShop should be easily extended in that regard.

Reports: Every organization requires different kinds of management information. Examples include rankings of the best customers, sales figures on various single products and product groups, and information regarding the preferred payment methods. Once again, WebShop should be open for any extension of the reporting subsystem.
Figure 2 sketches the configuration options of WebShop. Typical WebShop adaptations can choose among predefined payment options so that this aspect allows a black-box configuration. The promotion and report generation will quite likely be adapted to the specific requirements of each application.

Figure 3 represents the navigational structure of a typical WebShop application. Each single rectangle represents a web page and the arrows represent the actions that cause movement between the pages.

The Shopping page is the application entry point. It displays the list of available products, allowing clients to add products to their individual shopping cart and to change the quantities of each selected product. When the client wants to checkout he or she only has to select payment method and to provide the required payment information. The system then verifies the information and either processes the transaction or reports an error. Figure 4 shows a typical Shopping page.

WebShop allows the creation of a complementary site for displaying the administrative reports. Typically, the structure of the administrative is set up as a simple list of reports. The end user can select from an overview list any of the reports available(see Figure 5).

Conclusion:
The paper presented the core components of the WebShop framework, which focus assisting the development of online stores. The UML extensions, namely the UML-F profile used to describe WebShop proved very effective to provide an application developer an intuitive and easy overview of the framework. The UML-F profile mainly provides a set of tags together with mechanisms to introduce new tags and to describe their meaning and intention in an informal yet systematic way.