Que 1:- a.

Amazon is the world's online marketplace for all the books, enabling
trade on a local, national and international basis. With a diverse and passionate
community of individuals and small businesses, Amazon offers an online platform
where millions of items are traded each day. Mention and explain the various
opportunities offered by ecommerce for businesses.
b. What are the advantages and disadvantages of eCommerce?
Answer:- a. The various opportunities offered by ecommerce for businesses.
Many businesses need e-commerce software services to help take advantage
of e-commerce areas.
1. Tourism and Travel Sector: This sector has updated its system with ecommerce
services. Consumers can make online reservations of hotels,
motels, air tickets, railway tickets, etc.
2. Banking Sector: Most banks have changed their working style by making
their services available online through their respective websites.
3. Health Care Sector: This sector is large and uses a major part of
government expenses. So, most health care companies communicate or
exchange their services with each other.
4. Stock Sector: In the stock exchange sector, e-commerce services provide
demat account facilities for customers who can do an overall analysis of
the status of the stock areas and do their respective transactions.
5. Financial Sector: In India, the financial sector has adopted e-commerce

services and the users make maximum use of the same.

b. Advantages of E-Commerce
1. All-time processing: Customers can use the marketplace at all times
with the use of e-commerce services.
2. Better service: Customers are fully satisfied and receive better service.
3. No mediators: Customers can directly contact the suppliers and remove
all mediators.
4. Data on consumer performance: Using the e-commerce services, one
can understand consumer behaviour, for example, websites, products,
schemes and modes of payment which are preferred by the customer.
5. Time saving: Customers can save time because they can purchase

anything through the merchant websites.

The product is directly supplied to the customer because all orders and
enquiries are processed online. This eliminates the need for wholesellers
and retailers and brings down the cost.
Improved customer relationship is achieved by fast dissipation of
information.
E-commerce minimizes the time taken from order to delivery.
Provides better, faster and effective linkage with clients.
Enhances the organizations product and also does a market analysis, as
the organization gets feedback from the customer.
E-commerce helps to create knowledge markets. Small groups within big
firms can be funded with seed money to develop new ideas.
E-commerce helps people work together.
E-commerce is a 24 7 operation and has a global reach.

Disadvantages of E-Commerce
1. Lack of customer awareness: People who have no knowledge about

electronic communication like the Internet, and computers find it difficult

to transact electronically.
2. Not for small business: Small businessmen do not want to take any
extra burden because they have no knowledge of e-commerce functions.
3. Does not support all types of businesses: Some types of businesses
are not fit for e-commerce services.
4. Legal formalities: Before implementing e-commerce services in the
business, it is necessary to complete certain legal formalities like

authorization and authentication.

High risk for Internet startup organization

Security problems
Customer relation problems
Data integrity problems

Customer satisfaction problems

Que:- a. The TCP/IP reference model is the network model used in the current
Internet architecture. This model is derived from the OSI model and they are
relatively same in nature. Explain the different characteristics of Gateways in the
TCP/IP reference model with a neat diagram
b. Write short note on Hyper Text Markup Language (HTML) with example
Answer:- In spite of the model you use to represent the function of a networkand
regardless of what you call that modelthe functions that the model represents
are pretty much the same. This means that the TCP/IP and the OSI models are
relatively same in nature even if they do not carve up the network functionality
pie in precisely the same way. There is a fairly natural correspondence between
the TCP/IP and OSI layers; it just isnt always a one-to-one relationship. Since
the OSI model is used so widely, it is common to explain the TCP/IP architecture

both in terms of the TCP/IP layers and the corresponding OSI layers.

Diagram

Characteristics of Gateways

Gateway routers are used to connect dissimilar LANs and perform all the
functions of bridges and routers. It operates as all seven layers of the
OSI Reference Model.
Gateways provide full protocol conversion from one proprietary LAN
technology to another.

Gateway uses higher layers of the OSI model, perhaps through layer 7,
the application layer.

Diagram

The TCP/IP model (refer to Figure 2.5) has four layers that match six of
the seven layers in the OSI Reference Model. The TCP/IP model does not
address the physical layer, which is where network component and hardware
devices reside. The next three layersnetwork interface, the Internet and (hosttohost) transportcorrespond to layers 2, 3 and 4 of the OSI model. The TCP/
IP application layer conceptually blurs the top three OSI layers. It is important
to note that some people consider certain aspects of the OSI session layer to
be possibly part of the TCP/IP host-to-host transport layer.

HTML
HTML is a method where ordinary text can be converted into hypertext. It is a
set of special codes included to control the layout and appearance of the text.
Technically, HTML is not a programming language. It combines instruction within
data to tell a display program called browser, how to render the data that the
document contains.
The following is the structure of HTML:
<html>
<head> about authors </head>
<title> First Page </title>
<body>
<h1> Hello this my Home page!
</body>
</html>
Form tag is an important element for doing online business. Forms are necessary
for gathering user information, conducting surveys, or even providing interactive
services. Forms are supported by both client and server for successful
implementation. A number of features are available for building forms, including
text boxes, check boxes, radio buttons, submit buttons and text area. A user
can enter text, selects items from a list, check boxes, and then submit the
information to the server. A program on the server then interprets the data acts
on it appropriately, either by returning information in hypertext form, downloading
a file, or electronically notifying the company of your order. Generating forms in
HTML is only half the task. The harder part is to
decode the input data submitted from the form. All the programs use data
submitted from the form. All the programs that use data submitted from an
HTML form must conform to the specification called Common Gateway Interface
(CGI).
The important aspect of web server development is application gateway,
more specifically, CGI, which is a specification for communicating data between
an information server, in this case, Web server, and another application. CGI is
used wherever the web server needs to send or receive data from another
application, such as a database. A CGI script is a program that negotiates the
movement of data between the Web server and an outside application.
Use of CGI is to pass data, filled in by a user in an HTML form, from the
web server to a database. Data also can be returned to the users browser via
CGI. CGI scripts may be written in high level language such as C and Perl,
because they can run so many platforms.

Que3:-Hanson websites are built to work for your business and are built on the
concept of intelligent website. An intelligent website is more than just a brochure on
the web. It allows you to edit the website yourself through a Content Management
System (CMS). What is the need for an intelligent website?
Answer :One cannot build an intelligent website that optimally has all sources of
information for an online company, overnight. Actually, it is a long process that
requires significant investment in technology, and an accumulation of knowledge
that can come only with experimentation and trial and error. Website intelligence
leverages four types of information.
(i) Demographics:
(ii) Expressed Preferences
(iii) Past Transactions.
(iv) Observed Behaviour:
Consider the following steps that e-commerce companies typically follow
in leveraging their information.
Step 1: Basic Web traffic analysis
Before starting any Web activity, one first needs to analyse the Web traffic. This
type of data provides a record of the entry and exit points into a website, pages
that were visited, links that were followed, the duration for which a person viewed
a particular page, the precise day and time of visit, the browser type, visitors IP
address and other information.
Step 2: Customer interaction analysis
This step is used to collect more information about the customers interactions
with the website. The registered users are people who have had to register for
site usage, generally by filling out a survey form. As you know, in any site (even
a free site) the user has to fill a registration form in which there are various
types of questions related to profession, education, age, gender, leisure activities,
merchandise purchasing, etc. Through this registration process, the site is able
to get information related to both the demographics and preference. This type
of data is used to help inform personalization engines to serve the contents
according to the visitors interests.
Step 3: Real-time personalization
Personalization is the ultimate realization of the one-to-one marketing dream.
Customers are recognized when they come in; they can tailor the way they
interact with the merchant; and receive promotions and marketing pogrammes
that perfectly fit their personal requirements and preferences.

Step 4: Getting to fine-grained segmentation

Fine-grained segmentation is used to enhance the sites marketing power by
using an e-commerce intelligence system performing customer segmentation.
You can start with products that are at hands reach through coarse segmentation,
and then continue to fine-grained segmentation. This step also uses artificial
intelligence to conduct knowledge discovery. That is, it can look for patterns in
large data sets and identify common elements.
Step 5: Going through the streams of clicks
The click-stream data contains details on customer behaviour that are richer
than what can be achieved in traditional channels. Click-stream information is
the recording of every page request from every visitor by the website owners.

This information is stored into massive log files.

Step 6: Enrich content with external data
Once a customer performs a number of purchases, the website is able to further
enhance the customers profile. Demographic data from third party providers
may be added to the profile to provide a richer view of the customer base.
Analysing the enriched data might show, for instance, that a customer who
buys history books falls into a demographic segment which is also inclined to
buy classical music.
Step 7: Reaching optimal intelligence
A company can reach optimal intelligence once it is able to combine historical
transaction records, observed behaviour via click-stream data and preferences

expressed in online surveys.

Que 4:When a data is sent across the network it is encrypted and arranged in a way that
even if there is a diversion in the flow of data should not leak the data. At the
reception it is decrypted and actual data is obtained. Explain the different methods of
encryption technique.
Answer:- Methods of Encryption
There are three types of cryptography or methods of encryption:
Secret key or private key or symmetric key cryptography
Public key or asymmetric key cryptography

Hash function

1. Secret key or symmetic key cryptography

In this scheme, both the sender and the recipient possess the same key to
encrypt and decrypt the data. Figure 8.1 shows how secret or private key

cryptography works.

Figure 8.1 Schematic Diagram of Secret Key Cryptography

Data Encryption Standard

Data Encryption Standard (DES) is an example of secret key cryptography. It
was developed by IBM. DES is block cipher-based scheme which encrypts a
64-bit data block using a 56-bit key. The block is transformed in such a way that

it involves sixteen iterations. This done by using the security key.

To take an example, suppose, A encrypts a message with a secret key
and e-mails it to B, who on receiving it, checks the header to identify the sender.
B then has to take the duplicate of the secret key to decrypt the message.
Drawbacks of secret key cryptography
Both parties must agree upon a shared secret key.
If there are n correspondents, you have to keep track of n different
secret keys. If the same key is used by more than one correspondent,
the common key holders can read each others mail.
Symmetric encryption schemes are also subject to authenticity
problems. Since both the sender and the recipient have the same
secret key, the identity of originator or recipient cannot be proved.
Both can encrypt or decrypt the message.
2. Triple Encryption
As discussed, the DES is a block cipher and employs shared secret encryption.
But, nowadays DES is considered unsafe for various applications primarily due
to the 56-bit key size which is too small. Triple DES is considered as an improved
version to overcome many of the shortcomings of DES. The triple encryption
technology is based on DES and is sometimes referred as Triple DES or 3DES.
The event follows an Encrypt-Decrypt-Encrypt (EDE) sequence. Decrypt
sequence is just the same encrypting operation with the keys reversed. It is
based on the DES algorithm and can easily modify the existing software to use
Triple DES. It has a longer key length that helps in eliminating many of the
shortcut attacks used to reduce the amount of time it takes to break DES. Thus,
Triple DES is considered as an exceptional and dependable option to fulfill the
security requirements of highly sensitive information.
Triple DES mode of operation takes three 64-bit keys for an overall key
length of 192 bits. In Private Key Encryption, the user can just type in the complete
192-bit (24 character) key rather than entering each of the three keys individually.
The procedure for encryption is exactly the same as regular DES, but it is
repeated
three times. The data is encrypted with the first key, decrypted with the second

key and finally encrypted again with the third key

Figure 8.2 Triple DES Mode

3. Public key cryptography

This scheme operates on a double key, called pair key, one of which is used to

encrypt the message and the other is used to decrypt it. This can be viewed as
two parts; one part of the key pair, the private key, is known only by the designated
owner. The other part, the public key, is published widely but is still associated
with the owner of the private key. Figure 8.3 shows how public key encryption works.

Encryption and Decryption

Data encrypted with a public key can only be decrypted with a private key.
Data encrypted with a private key can only be decrypted with a public key.
Advantages of public key cryptography
Message confidentiality can be proved: The sender uses the recipients
public key to encrypt a message, so that only the private key holder can
decrypt the message, and no one else.
Authenticity of the message originator can be proved: The receiver
uses his private key to encrypt a message, to which only the sender has
access.
Easy to distribute public key: The public key of the pair can be easily
distributed.
Hash function
Hash function is a formula that converts a message of a given length into a
string of digits called a message digest. A mathematical transformation is used
by the hash function to encrypt information such that it is irreversible. The
encrypted ciphertext message cannot be decrypted back to plaintext.

Que 5:- Explain the different categories of electronic payment system in detail
Answer :- A secured payment transaction system is of critical importance to e-commerce.
Without standard security, you cannot assume the success of e-commerce,
hence, there are two common standards used for a secure electronic payment
system:
1. Secure Socket Layer (SSL)
2. Secure Electronic Transaction (SET)
1. Secure Socket Layer (SSL)
Secure socket layer (SSL), is a protocol that enables data security layers between
high-level application protocols and TCP/IP. It provides:

Data encryption
Server authentication
Message integrity
Optional client authentication
SSL is layered between application protocols such as HTTP, SMTP,
TELNET, FTP and GOPHER, above the Internet connection protocol,

TCP/IP.
SSL gives a security Handshake protocol to start the TCP/IP connection.
The consequence of this handshake is that the client and the server agree on
the level of security they would use and completes any verification necessities
required for the connection. After that, it is only used to decrypt and encrypt the

message stream.
SSL makes available encryption that begins a secure channel to thwart
third parties on the network from being able to interfere with and read messages
that are communicated between the client and the server. It also helps
confirmation that uses a digital signature to verify the authenticity of the server.
To offer security, the Netscape Navigator supports a new URL access method,
https, for linking to HTTP servers using SSL (that means http is a protocol that
is simply SSL underneath HTTP).
We should use https:// for HTTP URLs with SSL, whereas you continue
to use http;// for HTTP URLs without SSL, as (HTTP + SSL)= https, and HTTP
are different protocols and typically reside on different ports (443 and 80,
respectively). However, the similar server system can run boththe server and
the insecure HTTP server simultaneously. This shows that HTTP can offer some
information to all users using no security and https can provide only secure
information. As for instance, merchant catalogue can be insecure but the ordering
payment forms could be secure.
The advantage of SSL over secure HTTP is that SSL is not limited to
HTTP, but can also be used for making secure FTP and TELNET among other

Internet services. Moreover, as SSL encrypts everything, the display of complex

pages can be slow, and, therefore, those sites that are protected often use
minimal graphics to minimize the performance impact.
2. Secure Electronic Transaction
MasterCard and Visa developed the secure electronic transaction (SET) standard
for the safe use of debit, credit, and corporate purchasing cards over the Internet.
Microsoft, GEE, IBM, RSA and VeriSign are the co-developers. The SET protocol
is a set of written standards that explain how banks, merchants, consumers
and Cybercash associations should execute the transactions of these cards
across the Internet and WWW. SET architecture includes a number of entities
such as:
Cardholder
Merchant
Acquirer
Issuer and payment gateway
Number of certificate authority
SET protocol provides the following services:
(i) Protection of the cardholders account details from both fraudulent
merchants and eavesdroppers
(ii) Non-repudiation for both the merchant and the cardholder on the
agreement of transaction

(iii) Assurance to the merchant that the payment will be sure

Suppose a consumer has a browser, such as Microsofts Internet Explorer that
is SET-enabled; and on the other hand, banks, merchants, etc. have a SETenabled
server. The following are the steps involved in the transaction:
1. The consumer would open his MasterCard or Visa bank account on his
SET-enabled browser.
2. The consumer has a digital certificate and private signing key. This
certificate is used for signing the credit card for online purchases or other
transactions.
3. The bank should have certificates from the third-party merchants. These
certificates comprise the public key of the merchant and the public key of

the bank.
4. Over a web page, the customer places an order.
5. The merchants certificate is received by the browser of the customer and
the latter confirms it from the certificate of the merchant, the validity/
invalidity of the merchant.
6. The order information is sent by the browser after encryption with the
merchants public key, and the payment information is encrypted with the
banks public key.
7. The merchant validates the customer by examining the customers
certificate on the digital signature. This is done by referring the certificate
to the bank or third party.
8. With the banks public key, the merchant gives the order message to the
bank as well as the merchants certificate, and the customers information.
9. The bank authenticates the merchant and the message with the help of
the digital signature on the certificate along with the message and verifies
the payment part of the message.
10. The bank digitally signs and sends authorization to the merchant, who

can then fill the order.

Que6 :- We know that there are various internet services which help us to make the use of network
efficiently. Being a regular user of the various services without probably knowing the technical
aspects explain those services in details with an example.
Answer :- the following services that are available on the Net:
World Wide Web
E-mail
File Transfer Protocol
Telnet
Web Chat
Online Service
Instant Messaging

World Wide Web

According to Wikipedia, the World Wide Web is a system of interlinked hypertext
documents accessed via the Internet. You can use a Web browser to view
texts, images, videos and multimedia on web pages and navigate between them
using hyperlinks.
Electronic Mail
Electronic mailor e-mailhas been around from even before the Internet.

Wikipedia explains that e-mail is any method of digitally creating, transmitting

or storing human communication that is primarily textual. A host of electronic
mail systems have been designed in the past, but there were problems with
respect to compatibility and interoperability.
File Transfer Protocol
File Transfer Protocol (FTP) is a generic term for a cluster of programs used to
transfer files or data from one computer to another. It is a network protocol that
allows an FTP client to connect to an FTP server and manipulate files on that
server. Therefore, this protocol can be used to exchange and manipulate files
across computers.
Telnet
Telnet (Telecommunication network) is a network protocol used on the Internet
or in local area network (LAN) connections. It was developed in 1969 and is one
of the first Internet standards. With Telnet, a user can get access to a commandline
interface on a remote machine.
Example: Take the case of a person who works in the Mumbai office of a firm.
He is in Delhi on official work and wants to log into his computer in the Delhi
office.
Web Chat
Web chat allows users to communicate with one another in real time through
Web interfaces. A Web browser is the only requirement to be able to chat on
the Web.
Online Services
The first commercial online services became available in 1979. Anyone who
had a modem and communicating software could chat and e-mail; or access
news, financial and stock market information, various forums, bulletin boards
and other general information. These services used text-based interfaces and
menus. The problem with these services was that subscribers could exchange
e-mails only with those who subscribed to the same service.