Complete Notes On Internet
Complete Notes On Internet
Complete Notes On Internet
The Internet is a global system of interconnected computer networks. It is a network of networks that
consists of millions of private, public, academic, business, and government networks, of local to global
scope, that are linked by a broad array of electronic, wireless and optical networking technologies.
The Internet carries an extensive range of information resources and services, such as the inter-linked
hypertext documents of the World Wide Web (WWW) and the infrastructure to support email. It uses the
standard Internet protocol suite (TCP/IP) to serve billions of users worldwide.
The Internet has enabled and accelerated new forms of human interactions through instant messaging,
Internet forums, and social networking. Online shopping has boomed both for major retail outlets and small
artisans and traders. Business-to-business and financial services on the Internet affect supply chains
across entire industries. Most traditional communications media including telephone, music, film, and
television are being reshaped or redefined by the Internet, giving birth to new services such as Voice over
Internet Protocol (VoIP) and Internet Protocol Television (IPTV). Newspaper, book and other print
publishing are adapting to web site technology, or are reshaped into blogging and web feeds.
Origin of Internet
The origin of the Internet reach back to research commissioned by the United States government in the
1960s to build robust, fault-tolerant communication via computer networks. The funding of a new U.S.
backbone by the National Science Foundation in the 1980s, as well as private funding for other commercial
backbones, led to worldwide participation in the development of new networking technologies, and the
merger of many networks. The commercialization of what was by the 1990s an international network
resulted in its popularization and incorporation into virtually every aspect of modern human life. As of June
2012, more than 2.4 billion people - over a third of the world's human population - have used the services
of the Internet; approximately 100 times more people than were using it in 1995, when it was mostly used
by tech-savvy middle and upper class people in the United States and several other countries
British Engineer Sir Tim Berners-Lee in March, 1989, wrote a proposal that referenced his database and
software project ENQUIRE, and described a more elaborate information management system. In Year
1990, he published a more formal proposal to build a "Hypertext project" called "Worldwide Web to be
viewed by "browsers" using client-server architecture.
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3. Easy Navigation of Documents: The WWW is a search tool that helps you find and retrieve
information from a Web site using links to other sites and documents. The WWW was built on the
technology called Hypertext. This technology increases accessibility to linked documents on the Internet
and helps user to navigate between documents very easily.
4. Linking of Documents: Hypertext is identified by underlined text and a different color usually. Some
places will refer these types of technique as Jump-Off Points. Hypertext can make links within the same
document or to other documents.
5. Helpful in sharing information: The WWW is intended to help people share information resources,
and services with the widest possible community of users. Thus a user can access the WWW on Apple,
UNIX, Macintosh, DOS, Windows, and other operating systems.
6. Easy search, transverse and other use of information: WWW lets you search, traverse, and use
many types of information at numerous sites and in multiple forms. This interface is called a browser. Some
people refer to a browser as a 'web browser' often these terms are used interchangeably
7. Use of Protocol: Just like the Internet, the www has a protocol, which is known as Hypertext Transfer
Protocol (HTTP). HTTP acts as an interface between a Web Client Software, such Netscape Navigator.
Web Browsers
A browser is a piece of software that acts as interface between the user and inner workings of the internet
specifically the World Wide Web. Browsers are also referred to as web clients, or universal clients, because
in the client/server model, the browser functions as the client program. The browser acts on the behalf of
user. The browser -
Text and graphical information can be displayed in browser. The www incorporate hypertext, photographs,
sounds, video etc. that can be fully experienced through graphical browser.
3. Mosaic
4. Opera
5. Lynx
6. Hot java
7. Mozilla Navigator
8. Safari
9. Mozilla Firefox
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- Secure data transmission
Web addresses:
Web addresses refers to particular pages on a web server which are hosted by company or organization.
The technical name for these is uniform resource location. They are usually prefixed by http://www to
denote the web protocol and then broken down as follows:
http://www.domain-name.extension/file name
Domain Name: It refers to the name of server and usually selected to be the same as the name of the
company, the extension indicates its type. A domain name always contains two or more components
separated by period called dot.
The top-level portion of a domain describes the type of organization holding the name. An important
category for top level domains covers the following:
5. in: It is the country code for India. Two letter abbreviations are used for it.
INTRANET
It refers to a private network which is designed to meet the internal information needs of the employees. It
is accessible only by authorized employees, contractors and customers. It is basically used to
communicate no sensitive but broadly useful information such as Recent Corporate News:
The need for intranet is the result of many factors such as:
(c) Less expensive means of communication to remain in touch with employees located in scattered
offices
Advantages of Intranet
Important advantages of Intranet include the following:
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- Based on internet protocol which expands accessibility
Disadvantages of Intranet
Important disadvantages of Intranet include the following:
1. Include widely used applications and make them simple to use: Use the intranet to simplify
employee's lives. For instance, by putting travel expense reports on-line, employees do not have
to waste time filling out hard-copy reports, making copies for numerous people, and sending them
through regular or interoffice mail, which can take days. Instead, they can complete reports and
send them to as many people as needed. The recipients receive them in moments.
2. Secure the system: Security of intranets is vital. If the information on an intranet is corrupted
(such as an inaccurate posting of company job openings) or if a competitor accesses the
information (such as pricing policies for different products), it can lead to distrust.
3. Integrate databases into intranet applications: Databases are at the heart of intranet
applications. The data and information that employees access from the intranet come from one or
more databases. Companies must invest the time and money to build databases that are
accurate, complete, and reliable.
4. Invest in excellent network capacities: Clearly, networks are essential for the success of
intranets. Without a robust network infrastructure, an intranet simply will not be able to function. If
the network is frequently down or if the network is too slow, employees will get frustrated and may
not use the intranet.
5. Motivate employees to use the intranet: Change is not easy. Many people prefer to do things the
way always have. To convince people of the benefit of change, intranets must be easy to use with
user- friendly, intuitive interfaces. Further, companies should give incentives encouraging
employees to use the intranet.
EXTRANET
It refers to private network which operates similarly to an intranet but is directed at customers or suppliers
(people outside the organization) rather than at employees. An extranet is a computer which allows
controlled access from the outside, for specific business or educational purposes. In a business-to-
business context, an extranet can be viewed as an extension of an organization's internet that is extended
to users outside the organization, usually partners, vendors, and suppliers, in isolation from all other
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Internet users. For decades, institutions have been interconnecting to each other to create private networks
for sharing information. One of the differences that characterize an extranet, however, is that its
interconnections are over a shared network rather than through dedicated physical lines Extranet provides
information customers need such as detailed product description, frequently asked questions about
different products, offices maintenance information warranties and how to contact customer service and
sales office. Earlier, it was difficult for customers to access much of this information because paper version
of it at the customer site became scattered and out dated. By using extranet, companies are making this
type of information increasingly available at a single interactive site that is easy to navigate.
2. Select your audience and meet its needs: Extranets are designed to cater to the external entities of a
business, such as customers, suppliers, government regulators, and stockholders. The company should
carefully select the entity or entities that it wants the extranet to serve. The information needs of a
stockholder are quite different from the information needs of a supplier. Once a decision is made about the
audience for the extranet, the next step is to carefully identify specific information problems the extranet will
address.
3. Be willing to change: An extranet is a work in progress. Companies must continue to invest in the
extranet if it is to meet the changing needs of its audience. Otherwise, the extranet will become quickly
outdated, defeating its purpose.
4. Keep things simple: People want clean, crisp, easy-to-click-on applications. Because many visitors
may not be proficient with the Internet, it is important to make extranets intuitive and easy to use. Users do
not want to spend an enormous amount of time on clerical functions, so such functions, in particular, should
be easy to use.
5. 24 hours a day: Extranets should be up and running 24 hours a day, 7 days a week. Visitors should be
able to access the extranet anytime from anywhere. In the case of global companies, this becomes
imperative, given the time different between different countries.
6. Work with end users: When IT staffs try to build an extranet without help, the project's chances of
success sharply diminish. Successful extranets are a joint venture between IT and the business end users.
APPLICATIONS OF THE INTERNET
1. Communication: Internet has become an indispensable means of communication now days. Internal
communication mode such as E-mail has become the synonym for business communication. Now it is the
time where most of the business communication happens over e-mail only.
E-mail is the most popular internet service which refers to sending business communication electronically
over a network to single recipient or to many recipients. The receiver can retrieve the mail at his or her
convenience or the user is automatically notified when there is E-mail in the electronic mail box. An E-mail
system requires messaging system that stores and forward the messages to the right individual and mail
program that allow the user to send and receive messages. E-mail messages on the Internet can be
transmitted from one user to another often in seconds. Some more details on E mail are covered later in
this chapter.
2. Management of Business Operations: Internet has become a must have resource for all business
concerns. Now most of the organization owns their web portals where one may get ins and outs of the
organization. Internet has brought remarkable changes in the working of the business organizations.
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3. Education: Internet is extensively used presently in providing education. Now for getting an
internationally recognized degree, it is not necessary for someone to go thousands of miles away, he may
use online education facility and get recognized sitting at home. Many organizations have emerged which
are providing free online education through MOOCS (Massive open online course). One needs to simply
register with them online and they can sit at home freely. This has become possible only through the
Internet.
4. Research and studies: Internet has proved to be a boon for research and studies. Now, most of the
good libraries have got digitized and these are available online. One may get their online access by paying
the requisite fee. In addition to the online libraries, ample of material is freely available on internet.
Researches may find enormous details about a topic in just a click. This has become possible only through
the Internet.
5. E-commerce: E Commerce is another application of internet which has makes everyones life easier.
Now sitting at home, one may buy railway tickets, transfer money from one account to another, buy
insurance policies, and buy house hold goods. E-commerce has benefited business, consumer and even to
the government.
6. E-governance: E-governance is another application of internet. In the age of internet, government has
also taken serious steps for computerization of government offices. This will help in elimination of various
disadvantages of bureaucracy.
The above list of internet application is just indicative and students may enumerate various others
applications too.
ELECTRONIC MAIL
Electronic Mail is the abbreviated form of acronym e-mail. It is one of the most important applications of
internet. It is a fast and efficient method to exchange messages and other data. The following section
covers its advantages and disadvantages.
Advantages of E-Mail
Some of the major advantages of e-mail are summarized as follows:
1. Speed: E-mail messages can be transmitted very quickly. A typical message containing 400 words, for
example, can be transmitted in under a second. As a means of communication, e-mail is considered
extremely fast, with some messages able to reach their destination in a matter of minutes. Since e-mail is
considered to be an extremely fast method of communication, users often use the derisory term 'snail mail'
to refer to the conventional postal system.
2. Cost: The cost of sending or receiving messages is considered very low. Hundreds of messages can be
sent or received for the cost of a brief telephone call, making e-mail for cheaper than the postal service.
3. Multiple copies: E-mail allows multiple copies of the same basic message to be created and
transmitted. As an example, Eudora, a leading e-mail package, uses a special directory to hold the names
and e-mail addresses of friends and colleagues. Using some of the functions of the directory, groups of
people can be assigned an alias (sometimes known as a nickname), for example the name of a department
might be used as an alias for all of the people working there. A message can be created in the usual, way
and addressed to the alias. When the message is transmitted, copies are sent automatically to each of the
people belonging to the group.
4. Auditing: Even the simplest e-mail package will provide a number of features that allow users to audit
their messages. Most programs allow users to keep copies of any messages they produce, automatically
marking them with the date and time they were created. Some programs can automatically create receipts
that can be used to check if a message sent to another user has been received, or even if the message
has been read.
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5. Sharing data: E-mail messages can be used to transmit data files to other users. Files can be attached
to messages and transmitted in the usual way. All types of data can be sent in this way, including word
processor files, spreadsheet data, graphics and database files.
6. Multimedia: The latest e-mail packages allow users to include multimedia elements in their messages.
Messages can include a variety of different elements, including graphics, video, hyperlinks to information
on the Internet and sound files.
7. Group work: E-mail supports group work and remote working. Group work involves several people
working on the same project, using IT to help them communicate with each other and share data files.
Remove working (Teleworking) involves people working away from a central office - perhaps at home - but
staying in contact through e-mail and other methods.
8. Flexibility: The hardware and software used for handling e-mail can also be used for a variety of other
purposes. A typical modem, for example, can also be used to send or receive fax messages.
Disadvantages of E-mail
Some of the main disadvantages of e-mail are summarized as follows:
1. Routing: E-mail messages seldom take the most direct route to their destinations. A message sent from
Manchester to London, for example, might travel through Leicester, Birmingham and Nottingham before
reaching its final destination. This can lead to a number of difficulties.
- There are more opportunities for the message to become lost or garbled
3. Technical issues: Since using an e-mail service requires a certain level of technical knowledge, novice
users may find it difficult to operate the hardware and software involved. This can place a burden on an
organization in terms of training and technical support requirements.
4. Spam: Unwanted messages, such as advertisements, are received by most e-mail users. The act of
sending out these messages is usually called spamming. Dealing with unwanted or unnecessary e-mail
messages can place a great burden on an organizations resources.
5. Security: Unless they are encrypted, e-mail messages can be intercepted relatively easily. This makes
email unsuitable for sending confidential information unless special precautions are taken.
INTERNET PROTOCOLS
The Internet Protocol (IP) is the method or protocol by which data is sent from one computer to another on
the Internet. Each computer (known as a host) on the Internet has at least one IP address that uniquely
identifies it from all other computers on the Internet.
When you send or receive data (for example, an e-mail note or a Web page), the message gets divided
into little chunks called packets. Each of these packets contains both the sender's Internet address and the
receiver's address. Any packet is sent first to a gateway computer that understands a small part of the
Internet. The gateway computer reads the destination address and forwards the packet to an adjacent
gateway that in turn reads the destination address and so forth across the Internet until one gateway
recognizes the packet as belonging to a computer within its immediate neighborhood or domain. That
gateway then forwards the packet directly to the computer whose address is specified.
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Because a message is divided into a number of packets, each packet can, if necessary, be sent by a
different route across the Internet. Packets can arrive in a different order than the order they were sent in.
The Internet Protocol just delivers them. It's up to another protocol, the Transmission Control Protocol
(TCP) to put them back in the right order.
IP is a connectionless protocol, which means that there is no continuing connection between the end points
that are communicating. Each packet that travels through the Internet is treated as an independent unit of
data without any relation to any other unit of data. (The reason the packets do get put in the right order is
because of TCP, the connection-oriented protocol that keeps track of the packet sequence in a message.)
In the Open Systems Interconnection (OSI) communication model, IP is in layer 3, the Networking Layer.
The most widely used version of IP today is Internet Protocol Version 4 (IPv4). However, IP Version 6
(IPv6) is also beginning to be supported. IPv6 provides for much longer addresses and therefore for the
possibility of many more Internet users. IPv6 includes the capabilities of IPv4 and any server that can
support IPv6 packets can also support IPv4 packets.
IP Address Format
The 32-bit IP address is grouped eight bits at a time, separated by dots, and represented in decimal format
(known as dotted decimal notation). Each bit in the octet has a binary weight (128, 64, 32, 16, 8, 4, 2, 1).
The minimum value for an octet is 0, and the maximum value for an octet is 255. An example of IP address
is as given below:
172 - 16 - 254 -1
****
10101100 00010000 1111111 00000001
4 bytes
2. The IP protocol encapsulates the Transport layer packet with information about which Transport
layer protocol it came from, what host it is going to, and where it came from, and a little bit of other
useful information. All of this is precisely standardized, down to every single bit.
3. The IP protocol has a couple of basic functionalities that it must be able to handle. It must be able
to define the datagram, which is the next building block created by the transport layer (this may in
other words be TCP, UDP or ICMP for example).
4. The IP protocol also defines the Internet addressing system. It means that the IP protocol is what
defines how to reach between hosts, and this also affects how one is able to route packets.
5. IP must also be able to DE capsulate and encapsulate the IP datagram (IP data) and send or
receive the datagram from either the Network access layer, or the transport layer.
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6. IP protocol is responsible for routing packets from one host to another, as well as packets that we
may receive from one host destined for another.
7. The IP protocol is also a connectionless protocol, which in turn means that IP does not "negotiate"
a connection. A connection-oriented protocol on the other hand negotiates a "connection" (called a
handshake) and then when all data has been sent, tears it down. TCP is an example of this kind of
protocol; however, it is implemented on top of the IP protocol.
In Year 1997 OECD (Organization for Economic Corporation and Development, defines that E-Commerce
refers generally to all the forms of transactions related to commercial activities, including both organizations
and individuals, that are based upon the processing and transmission of digitized data, including text,
sound and visual images.
E-commerce allows consumers to electronically exchange goods and services with no barriers of time or
distance. Electronic commerce has expanded rapidly over the last few years and is predicted to continue at
this rate, or even accelerate. In the near future the boundaries between "conventional" and "electronic"
commerce will become increasingly blurred as more and more businesses move sections of their
operations onto the Internet.
European Commission in Year 1997 defines, that Electronic Commerce is about doing business
electronically. It is based on the electronic processing and transmission of the data, including text, sound,
and video. It encompasses many diverse activities including electronic trading of goods and services,
online delivery of digital content, electronic fund transfers, electronic share trading, electronic bills of lading,
commercial auctions, collaborative design and engineering, online sourcing, public procurement, direct
consumer marketing, and after sales service. It involves both products (e.g. consumer goods, specialized
medical equipment) and services (e.g. information services, financial and legal services); traditional
activities (e.g. health care, education) and new activities (e.g. virtual malls).
Thus, E-commerce refers to the paperless exchange of business information using Electronic Data
Interchange, electronic mail, electronic bulletin board, electronic funds transfers and other networked based
technologies. It is not only automating manual process and paper transaction but also help organizations
move to a fully electronic environment and change the way they operate.
- It is a business strategy.
Elements of E-commerce
1. A product or a service: In case of E-Commerce, it is virtual product shown on a web site. One can
demonstrate multimedia presentation of the product and all its features on the web page itself, which may
not be possible in case of physical product of commerce activity.
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2. A place to sell the product: In the e-commerce case, a website displays the products in all ways & act
as a place for E-Commerce.
3. A way to get customers to visit your website: In case of E-Commerce search engines and linkages
with other web sites play an important role in helping the customers to reach web sites of the e-
organizations.
4. A way to accept orders: The orders are accepted on the web site itself. On the web pages of the E-
commerce companies shopping carts are being provided. One can click on the icon and fill in the shopping
card to order items to be purchased and it is accepted by the E-comm. Company as order from the
customer.
5. A way to accept money: In case of traditional commerce, buyers and sellers are in direct contact with
each other. The payments in E-commerce are made using Electronic Fund Transfer in various form using
credit cards, smart cards, e-checks, etc. The information of payment is routed through Value Added
Networks (VANs) and Payment Gateway Systems, etc.
6. A fulfilment facility to ship product to customers: The shipment of the product to the customer is
made through third party. The most of the E-commerce companies are having their chain of suppliers in
various localities and items are shipped through these suppliers to the customers.
7. A way to accept returns: As is the case of commerce, in case of E-commerce all the trading
companies have the system of accepting the returns if the goods and services are not to the satisfaction of
the customer or not up to the standards/ specifications mentioned in the product catalogue or brochures
hosted on the web pages.
8. A way to handle warranty claims: Sometimes if the product breaks in the way or some other
problems crop up with the product. In such situation, warranty claims are to be honored as in the case of
commerce.
9. A way to provide customer service: The main tools of the customer service are E-mail, On-line forms,
online knowledge bases and frequently asked questions.
Type of E-commerce
E-commerce types represent a range of various schemas of transactions which are distinguished according
to their participants. Usually E-commerce is divided into three general most well-known types, but the
notion is much wider. Here four such models are specified.
1. B2B or Business to Business
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Characteristics of B2B E-commerce
(a) It requires two or more business entities interacting with each other directly or through an
intermediary.
(b) The intermediaries in B2B may be the market makers and directory service providers that assist in
matching the buyers and sellers and striking a deal.
(c) The business application of B2B electronic commerce can be utilized to facilitate almost all facets
of the interactions among organizations, such as Inventory Management, Channel Management,
Distribution Management, Order fulfilment and delivery, and payment management.
- Supplier-Centric,
- Buyer-centric, or
- Intermediary-centric.
In B2C E-commerce, the businesses offer a set of merchandise at given prices, discounts and shipping and
delivery options and the sellers and consumers both benefit:
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1. Through the round the clock shopping
4. Customizations and
The B2C model of electronic commerce transaction is ideally suited for the following:
1. Goods that can be easily transformed into the digital format such as books, music clips and
videos, software packages
2. Items that follow a standard specification: printer ribbons, ink cartridges etc.
3. Highly rated brand items or items with return security: Dell & Compaq Computers, Electronic
Gadgets from Sony etc.
4. Items that may be sold in packets that cannot be opened even in physical stores, Kodak film rolls
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2. The C2C in many a situation models the exchange systems with a modified form of deal making.
3. For the deal making purposes large virtual consumer trading community is developed. The
customer operates by the rules of this community to compete, check and decide his own basic
transaction prices.
4. It mimics the traditional economic activities corresponding to 'classified ads' and auctions of
personal possessions.
5. Much of the transactions in this category correspond to the small gift items, craft merchandise
and similar items that are normally sold through the 'flea' markets or Bazaars
Characteristics of E-commerce
1. The transactions originated by the customer have the set of specifications and the required price
for a commodity, service or an item.
2. The business entity is expected to match the requirements of the consumers to the best possible
extent.
3. The Consumer to Business (C2B) enables a consumer to determine the price of a product and/or
service offered by a company.
4. It reduces the bargaining time and increases the flexibility at sales place for both the merchant
and the consumer. For Example, PriceLine.com
E-COMMERCE SECURITY
E-commerce security is the protection of e-commerce assets from unauthorized access, use, alteration, or
destruction. It can be measured on the following dimensions.
- Integrity
Prevention against unauthorized data
- Authenticity
modification Authentication of data source
- Confidentiality
Protection against unauthorized data
- Privacy
disclosure Provision of data control and
- Availability
disclosure Prevention against data delays
or removal
- Non-repudiation: Prevention against any party from reneging on an agreement after the fact
E-Commerce Threats
Threats may refer to anyone with the capability, technology, opportunity, and intent to do harm. Potential
threats can be foreign or domestic, internal or external, state-sponsored or a single rogue element. Details
of some threats in e-commerce are as given:
1. Intellectual property threats: Use existing materials found on the Internet without the owner's
permission, e.g., music downloading, domain name (cyber-squatting), software pirating.
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2. Client computer threats: This is about spying software like Trojan horse, or of other computer
software attacks like Active contents, Viruses etc.
3. Communication channel threats: It includes Sniffer program, Backdoor, Spoofing, and Denial-of-
service, etc.
4. Server threats: It covers Privilege setting, Server Side Include (SSI), Common Gateway Interface
(CGI), File transfer, Spamming etc.
Counter Measure
Counter measure is a procedure that recognizes, reduces, or eliminates a threat. Now the counter measure
adopted for different type of E-commerce threat are discussed below -
4. Server protection
(b) Firewalls
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3. Develop an implementation plan: It is a set of action steps to achieve security goals.
5. Perform a security audit: A routine review of access logs and evaluation of security procedures.
A supply chain is a network of facilities and distribution options that performs the functions of procurement
of materials, transformation of these materials into intermediate and finished products, and the distribution
of these finished products to customers. Supply chains exist in both service and manufacturing
organizations, although the complexity of the chain may vary greatly from industry to industry and firm to
firm.
A simple example of Supply Chain may be a very simple supply chain for a single product, where raw
material is procured from vendors, transformed into finished goods in a single step, and then transported to
distribution centers, and ultimately, customers. Realistic supply chains have multiple end products with
shared components, facilities and capacities.
Supply chain management is typically viewed to lie between fully vertically integrated firms, where the
entire material flow is owned by a single firm and those where each channel member operates
independently. Therefore, coordination between the various players in the chain is the key in its effective
management. Cooper and Ell ram (1993) compare supply chain management to a well-balanced and well-
practiced relay team. Such a team is more competitive when each player knows how to be positioned for
the hand-off. The relationships are the strongest between players who directly pass the baton, but the
entire team needs to make a coordinated effort to win the race.
E-supply chain management (e-SCM) is the collaborative use of technology to enhance B2B processes
and improve speed, agility, real-time control, and customer satisfaction. It involves the use of information
technologies to improve the operations of supply chain activities (e.g., E-procurement), as well as the
management of the supply chains (e.g., planning, coordination, and control). E-SCM is not about
technology change alone; it also involves changes in management policies, organizational culture,
performance metrics, business processes, and organizational structure across the supply chain. The
success of an e-supply chain depends on the following:
1. The ability of all supply chain partners to view partner collaboration as a strategic asset. Tight
integration and trust among the trading partners generate speed, agility, and lower cost.
2. A well-defined supply chain strategy. This includes a clear understanding of existing strengths and
weaknesses, articulating well-defined plans for improvement, and establishing cross-
organizational objectives for supply chain performance. Senior executives commitment is also
essential and must be reflected through appropriate allocation of resources and priority setting.
3. Information visibility along the entire supply chain. Information visibility refers to the information
about inventories at various segments of the chain, demand for products, capacity planning and
activation, synchronization of material flows, delivery times, and any other relevant information
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that must be visible to all members of the supply chain at any given time. To enable visibility,
information must be managed properly: with strict policies, discipline, and daily monitoring. It must
also be shared properly.
4. Speed, cost, quality, and customer service. These are the metrics by which supply chains are
measured. Consequently, companies must clearly define the measurements for each of these four
metrics, together with the target levels to be achieved. The target levels should be attractive to the
business partners.
5. Integrating the supply chain more tightly. An e-supply chain will benefit from tighter integration,
both within a company and across an extended enterprise made up of suppliers, trading partners,
logistics providers, and the distribution channel
CRM has come a long way in a few short years. Today, CRM is the central customer repository for all
things customer. In our age of the distributed workforce, going to the backroom to pull the customers file
from the cabinet is not practical. Further, as multiple people from departments all over your company have
the need for direct interaction with the customer, this central customer record is critical. More complex than
a rolodex or contact manager, CRM is enabling businesses of all sizes to be more efficient and predictably
and thoughtfully service, sell and market to their customers.
- Assisting the organization to improve telesales, account, and sales management by optimizing
information shared by multiple employees, and streamlining existing processes (for example,
taking orders using mobile devices)
- Allowing the formation of individualized relationships with customers, with the aim of improving
customer satisfaction and maximizing profits; identifying the most profitable customers and
providing them the highest level of service.
- Providing employees with the information and processes necessary to know their customers
understand and identify customer needs and effectively build relationships between the company,
its customer base, and distribution partners.
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Harnessing the power of the Internet to drive a closer relationship with customers should be the goal of
every business. Over the last several years, many companies who invested in CRM and E-Commerce
technology lost their way as they believed it was an electronic panacea designed to eliminate the need to
talk to their customers and orders would just flow in because they had a shopping cart on their website with
colorful product images. E- Commerce and CRM are tools designed to learn more about customers, their
preferences and a clever way to market and re-market to them. However, most importantly, these tools are
and should be a convenience for your customer, not your company.
Computer-to-computer exchange: EDI replaces postal mail, fax and email. While email is also an
electronic approach, the documents exchanged via email must still be handled by people rather than
computers. Having people involved slows down the processing of the documents and also introduces
errors. Instead, EDI documents can flow straight through to the appropriate application on the receivers
computer (e.g. the Order Management System) and processing can begin immediately.
EDI Exchanges the information in Standard format: Because EDI documents must be processed by
computers rather than humans, a standard format must be used so that the computer will be able to read
and understand the documents. A standard format describes when each piece of information is and in what
from (e.g. integer, decimal, mmddyy). Without a standard format, each company would send documents
using its company-specific format and, much as an English-speaking person probably doesnt understand
Japanese, the receivers computer system doesnt understand the company-specific format of the senders
format. There are several EDI standards in use today, including ANSI, EDIFACT, TRADACOMS and XML.
And, for each standard there are many different versions, e.g. ANSI 5010 or EDIFACT version D12,
Release A. When two businesses decide to exchange EDI documents, they must agree on the specific EDI
standard and version. Businesses typically use an EDI translator - either as in-house software or via an EDI
service provider - to translate the EDI format so the data can be used by their internal applications and thus
enable straight through processing of documents.
BENEFITS OF EDI
It documents re-keying
By removing the manual keying of key business documents such as Orders, Invoices, Acknowledgments
and Dispatch Notes your company can benefit significantly by:
- Reduced labor costs
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- Instant document retrieval
Paper-based transactions have some inherent disadvantages when compared with the electronic
transactions:
- Lost documents
- Postage costs
- Improved efficiency
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- Reduced administrative costs
- Improved security
2. Convenience: Electronic payments ensure that your store is open for business globally, 24-hours
a day, seven days a week.
(d) Shopping site software can be easily integrated with popular back office packages, such as
Sage, to automate ordering, stock control, invoicing and accounting systems.
4. Reduced costs: Accepting online payments means that many banking processes become
automatic.
5. Increased customer base: Online payments take advantage of impulse buyers. 95 per cent of
electronic purchases are by credit card. If your website doesn't offer payment by credit cards as
an option, you could lose out on this market
MOBILE COMMERCE
M-commerce is a term that is used to refer to the growing practice of conducting financial and promotional
activities with the use of a wireless handheld device. The term m-commerce is short for mobile commerce,
and recognizes that the transactions may be conducted using cell phones, personal digital assistants and
other hand held devices that have operate with Internet access. While still in its infancy, the concept of m-
commerce has been refined in recent years and is beginning to become more popular.
It is quite different from traditional e-Commerce. Mobile phones impose very different constraints than
desktop computers. But they also open the door to a slew of new applications and services. They follow
you wherever you go, making it possible to look for a nearby restaurant, stay in touch with colleagues, or
pay for items at a store.
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- Mobile ticketing module is an m-commerce app component that is closely linked to promotional
side of commercial business and enables vendors to attract customers by distributing vouchers,
coupons and tickets.
- Mobile customer support and information module is a point of reference for information about a
particular retailer, its offerings and deals. The news about the company, current discounts, shop
locations and other information is either pushed to users m-commerce apps or can be found in m-
commerce app itself.
- Mobile banking is inextricably linked to selling process via m-commerce apps, because no
purchase can be finalized without a payment. There are various options for executing mobile
payments, among which are direct mobile billing, payments via sms, credit card payments through
a familiar mobile web interface, and payments at physical POS terminals with NFC technology.
2. Reduced Business Costs: Mobile commerce also helps reduce costs for the seller. She rarely needs
to pay for a separate office space, overhead costs or employees. In some cases, a small business owner
who sets up a mobile commerce operation doesn't need an office at all. The seller can monitor sales online
or by receiving statements from a processing service. The main expense for this type of business owner is
advertising to disseminate information on how users can access the product or service. The lowered cost
allows the business owner to take advantage of a higher per-sale profit. He also can offer the product at a
lower price compared to delivery in other formats.
3. Little Need for Maintenance: Another characteristic of mobile commerce is that it requires very little
maintenance from the seller. The owner sets the product up for mobile delivery one time and then receives
payment for sales automatically. From time to time, he may need to perform a few maintenance duties,
such as correcting a technology error or updating the product, but overall it is a selling format that requires
very little management compared with other selling strategies.
Future of M-commerce
The most prominent m-commerce trend is its own growth. According to Forrester, annual m-commerce
sales are predicted to quadruple to $31 billion in the next five years. In 2012, some ecommerce sites (like
Amazon) saw remarkable growth, while most businesses experienced only limited m-commerce success.
However, one thing they all have in common is that they now universally recognize m-commerce as an
important way to enhance their brand, increase their sales and keep up with competitors. In short, the
future of m-commerce is bright, and looks like its getting even brighter.
Another trend in m-commerce is that customers desire more information on mobile websites. Studies show
that 80% of smart phone users want more product information when shopping on their mobile devices. A
large part of m-commerces appeal may be convenience, but if that convenience comes at the sacrifice of
information, customers will be sure to look elsewhere. The larger trend here is that ultimately, businesses
are in uncharted waters when it comes to their mobile offerings, theyre still finding out what works and
what doesnt.
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BLUETOOTH
Bluetooth allows two devices to be connected to each other wirelessly. The most common use of Bluetooth
technology is in hands-free devices such as headsets used with mobile phones. Bluetooth technology can
also be used to transfer data between two electronics devices without using wires.
Bluetooth was invented in 1994 by Ericsson. The company later started working with a larger group of
companies called the Bluetooth Special Interests Group, or "SIG," to develop the technology into what it is
today. Bluetooth is not owned by any one company and is developed and maintained by SIG. The name
Bluetooth came from a code name originally used by SIG for the project and is a reference to a 10th
century Danish king named Harold Bluetooth, who was responsible for uniting Norway, Sweden, and
Denmark.
Bluetooth technology was designed primarily to support simple wireless networking of personal consumer
devices and peripherals, including cell phones, PDAs, and wireless headsets. Wireless signals transmitted
with Bluetooth cover short distances, typically up to 30 feet (10 meters). Bluetooth devices generally
communicate at less than 1 Mbps.
WI-FI
Wi-Fi is the name of a popular wireless networking technology that uses radio waves to provide wireless
high-speed Internet and network connections. A common misconception is that the term Wi-Fi is short for
"wireless fidelity," however this is not the case. Wi-Fi is simply a trademarked term meaning IEEE 802.11x.
The Wi-Fi Alliance, the organization that owns the Wi-Fi (registered trademark) term specifically defines Wi-
Fi as any "wireless local area network (WLAN) products that are based on the Institute of Electrical and
Electronics Engineers' (IEEE) 802.11 standards.
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- A wireless router receives the signal and decodes it. The router sends the information to the
Internet using a physical, wired Ethernet connection.
The process also works in reverse, with the router receiving information from the Internet, translating it into
a radio signal and sending it to the computer's wireless adapter.
Features of Wi-Fi
Wi-Fi has brought a new aspect in the ground of networking. The broadcast of data is completed via radio
waves and the cost of cables for network lying down. Wi-Fi enables a user to get access to internet
anywhere in the given location. Now you can make a network in Hotels, Libraries, colleges, universities,
campus, private institutes, and coffee shops and even on a public place to make your business more
profitable and connect with their client any time. Wi-Fi makes waves for business with their highly effective
cable less media.
LESSON ROUND-UP
- The Internet is a global system of interconnected computer networks that use the standard
Internet protocol suite (TCP/IP) to serve billions of users worldwide. It is a network of networks
that consists of millions of private, public, academic, business, and government networks, of
local to global scope, that are linked by a broad array of electronic, wireless and optical
networking technologies.
- The World Wide Web (abbreviated as WWW commonly known as the web), is a system of
interlinked hypertext documents accessed via the Internet. With a web browser, one can view
web pages that may contain text, images, videos, and other multimedia, and navigate between
them via hyperlinks
- A Web-browser is a piece of software that acts as interface between the user and inner workings
of the internet specifically the World Wide Web
- Web addresses refers to particular pages on a web server which are hosted by company or
organization.
- Intranet refers to a private network which uses Internet technology and is designed to meet the
internal information needs of the employees. It is accessible only by authorized employees,
contractors and customers
- Extranet refers to private network which operates similarly to an intranet but is directed at
customers or suppliers rather than at employees. Extranet provides information customers need
such as detailed product description, frequently asked questions about different products,
offices maintenance information warranties and how to contact customer service and sales
office
- Electronic Mail is the abbreviated form of acronym e-mail. It is one of the most important
applications of internet. Electronic mail (E-mail) is a fast and efficient method to exchange
messages and other data
- The Internet Protocol (IP) is the method or protocol by which data is sent from one computer to
another on the Internet. Each computer (known as a host) on the Internet has at least one IP
address that uniquely identifies it from all other computers on the Internet.
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