Ecommerce Syllabus BBA 6th Sem

E-Commerce Notes (BBA 6th sem) FEB_2012 Mukesh Gupta 1
External Marks: 50
Practical Marks: 50
Time: 3 hrs.
E-COMMERCE
PAPER CODE: bba-6005
UNIT-I
Introduction – meaning, nature, concepts, advantages and reasons for transacting online, categories
of e-commerce; planning online business: nature and dynamics of the internet, pure online vs. brick
and click business, assessing requirement for an online business, designing, developing and
deploying the system, one to one enterprise
UNIT-II
Technology for online business – internet, IT infrastructure; middleware contents: text and
integrating e-business applications; mechanism of making payment through internet: online payment
mechanism, electronic payment systems, payment gateways, visitors to website, tools for promoting
website; plastic money: debit card, credit card; laws relating to online transactions
UNIT-III
Applications in e-commerce – e-commerce applications in manufacturing, wholesale, retail and

service sector
UNIT-IV
Virtual existence – concepts, working, advantages and pitfalls of virtual organizations, workface,
work zone and workspace and staff less organization; designing on E-commerce model for a middle
level organization: the conceptual design, giving description of its transaction handling,
infrastructure and resources required and system flow chart; security in e-commerce: digital
signatures, network security, data encryption secret keys, data encryption
Instruction for External Examiner: The examiner will set 8 questions (2 questions from each
unit). The students will be required to attempt any five questions (selecting at least one question.
From each unit). All questions will carry equal marks.
Q: Explain the meaning nature and concepts of E-commerce?

In addition to E-commerce, E-Business includes both front and back end office online. E-
business is not just about selling, purchasing or marketing of goods and service but it
include the Customer Relation Management (CRM), Supply chain Management (SCM),
Inventory management by transacting online,
Ecommerce is not just on the Web. In fact, ecommerce was alive and well in business to
business transactions before the Internet in the 1970s via EDI (Electronic Data
Interchange) and EFT (electronic fund transfer) through VANs (Value-Added Networks).
Ecommerce can be broken into four main categories: B2B (Business to Business) , B2C
(Business to Consumer) , C2B (Consumer to Business) , and C2C (consumer to
consumer).
Electronic commerce or e-commerce refers to a wide range of online business activities like
sale, purchase of products and services. It also pertains to “any form of business
transaction in which the parties interact electronically rather than by physical exchanges.
Driver of E-Commerce At any time, any where and for any one
E-commerce is one of the most important aspects of Internet emerge, it allow people to
exchange goods and services electronically without any barriers of time and distance.
Feature of E-commerce
1. Benefits to Society, Organization as well as customer
2. No Geographical barrier reach to narrow market too
3. E-commerce help organization to reduce product cost
4. 365 x 24 x 7 availability
5. Better customer communication
6. Improved customer services
7. Increase operating and trading flexibility
8. Cost of Transaction is same everywhere for the consumer/buyer
9. E-commerce technologies enable a business to easily reach across

geographic boundaries.
10. It’s really easy to understand how this feature can benefit to a business
as well as consumers.
11. e-commerce is made possible through hardware (Internet) and

software/content (World Wide Web)
12. Universal standards can greatly influence market entry costs
13. Consumer/user can interact with the Internet, more option to

sale/purchases are available in the global market
14. E-commerce has more opportunities for personalization then going to a

store and buying an item face-to-face in a store.
Q: E-Commerce advantages and disadvantages and the reasons for

transacting online
The main reasons for transacting online is that in this competitive environment all
technological ideas, awareness, innovation and inventions are imparted in the center on
computers, cell phones and the Internet. We have rotated our daily lives with these
technologies. Internet is gaining rapid popularity with every passing day. As the Internet
supported communities grow and assuming that they do certainly extend to include
individuals around the country. Innovative improvement is always required to ride the
expected or predictable move of change. Indeed, the success of the transformation of
Corporate to an on demand Business
Commerce is a negotiated (bargain) exchange of valuable objects or services between at

least two parties and includes all activities that each of the parties undertakes the complete
the transaction. Electronic commerce or in short e-commerce, refers to business activities
like selling and purchasing of products and services carried out over electronic systems like
the Internet and computer networks.
Advantages and Disadvantages of Electronic Commerce
Like any conventional business, E-commerce (Electronic Commerce) is also characterized

by some advantages and inherent drawbacks. Let's have a look at some of these important
advantages and disadvantages of electronic commerce.
Advantages of E-Commerce
The greatest and the most important advantage of e-commerce, is that
1. It enables a business concern or individual to reach the global market
2. Demands of both the national and the international market, as your business
activities are no longer restricted by geographical boundaries.
3. Even small enterprises can access the global market for selling and purchasing
products and services.
4. E-commerce empowers (authorized / allow) everyone to execute business

transactions 24 hours a day and even on holidays and weekends. This in turn
significantly increases sales and profit.
5. Electronic commerce gives the customers the opportunity to look for cheaper and
quality products.
6. With the help of e-commerce, consumers can easily research on a specific product
and sometimes even find out the original manufacturer to purchase a product at a
much cheaper price than that charged by the wholesaler.
7. Shopping online is usually more convenient and time saving than conventional
shopping.
8. Besides these, people also come across reviews posted by other customers, about
the products purchased from a particular e-commerce site, which can help make
good products purchasing decisions.
9. As well as the business is concern, E-commerce significantly cuts down the cost
associated with marketing, customer care, processing, information storage and
inventory management.
10. It reduces the time period involved with business process.
11. Electronic commerce reduces the burden of infrastructure to conduct businesses.
Disadvantages of Electronic Commerce
Technological and fundamental limitations which has restricted the number of people using
this revolutionary system.
1. Internet has still not yet touched the lives of a great number of people, either due
to the lack of knowledge or trust.
2. A large number of people do not want to use the Internet for any kind of financial
transaction for security reasons.
3. Some people simply refuse to trust the authenticity of completely impersonal

business transactions,
4. Many people have fear to disclose personal and private information for security
concerns.
5. The legitimacy and authenticity of different e-commerce sites have also been
questioned.
6. It is not suitable for fresh commodities like food items.
7. A lot of phone calls and e-mails may be required till you get your desired
products.
Q Explain is EDI (Electronic Data Interchange) with all aspects?

History of EDI The earliest implementation of a system compliant with EDI is the
British Automated Clearing Service (1970).
EDI Structure The basic EDI structure is given below.
 Each partner has their own internal software systems.
 Special EDI adapters have to be implemented which will be able

to interface with the internal system as well as communicate
with the value added network.
 The particulars of the message syntax and interaction process

are negotiated between partners in advance. Sometimes a
dominant partner will impose its standards on smaller partners.
Partner Partner
A EDI VAN EDI B
Internal Software VAN Software Internal
System System
V.A.N (Value Added Network)
1. Value Added Networks (VAN) are the go-between in EDI communications.

2. The VAN is responsible for routing, storing and delivering EDI messages. They
also provide delivery reports
3. Depending on the VAN type, messages may need extra envelopes or may be
routed using intelligent VANs which are able to read the EDI message itself.
4. VANs may be operated by various entities
a. Telecom companies
b. Industry group consortiums
c. A large company interacting with its suppliers/vendors
Use of EDI
Financial and monetary. Systems like SWIFT
Impact of EDI (advantages) on organizations
1. Shorter lead times, more flexibility and less inventory

2. A purchase negotiation which used to take 2 weeks now took 24 hours.
3. About million of stock reduction in the inbound inventory

4. Greater Accuracy
5. Reduced Manpower
Drawback of EDI (Disadvantages)
1. EDI adapter software is too expensive for most organizations.

2. The software has to be practically rewritten for different combinations of VANs,
internal hardware and trading scenarios.
3. The software is also subject to change when there is a revision in EDIFACT (EDI for
Administration , Commerce and Transportation)
4. VAN subscription costs and dedicated line costs are too expensive for most SMIs
(Small Manufacturer Industries)
5. The EDI system is highly static and every business process has to be meticulously
negotiated between partners.
6. Since there is no common registry or discovery mechanism, partners have to retain
information on institution codes, product codes, up-to-date catalogs etc. associated
with everybody they do business with.
Q:-Explain the Category of E-commerce?

As we know ecommerce allows peoples to carry out business without any barriers of time
and distance. The simplest definition of EC (Electronic Commerce) is the use of computer
and network based technologies to assist in the performance of daily routine business
processes. Technologies comprises of EDI (Electronic Data Interface), E-mail (Electronic
Mail), Automatic Identification System, CAD (Computer Aided Design), CAM (Computer
Aided manufacturing), Video Conferencing and WWW (World Wide Web) capabilities
E-Commerce Category
B2B (Business-to-Business) : Companies doing business with each other such as

manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on
quantity of order and is often negotiable.
B2C (Business-to-Consumer) :B2C apply to online transaction between organization

and consumer to sale product and service over Internet. If a product reaches direct to end
user (consumer), the cost of product reduces automatically. It is basically a concept of
online marketing of products.
Benefits of Consumers
Consumer can get competitive prize of products
Need not to goto market and face the crowd
Consumer can make shopping anytime
Get delivery of goods at home
More product option available
Global market available
Challenges for business

E-commerce by pass the mediators
Small firms have difficult to enter in the market
Competition Increase
C2B (Consumer-to-Business)
A consumer posts his requirements with a set budget online and within hours companies
review the consumer's requirements and bid on the project. The consumer reviews the bids
and selects the company that will complete the requirements. E-commerce empowers
consumers around the world by providing the meeting ground and platform for such
transactions.
C2C (Consumer-to-Consumer)
There are many sites offering free classifieds, auctions, and forums where individuals can
buy and sell things by online payment systems like credit card, debit card, mobile transfer
etc. Where people can send and receive money online easily. E-Bay's auction service is a
great example of where person-to-person transactions take place everyday since 2000.
Companies using internal networks to offer their employees products and services online--
not necessarily online on the Web--are engaging in B2E (Business-to-Employee)
ecommerce. G2G (Government-to-Government), G2E (Government-to-Employee), G2B
(Government-to-Business), B2G (Business-to-Government), G2C (Government-to-Citizen),
C2G (Citizen-to-Government) are other forms of ecommerce that involve transactions with
the government--from obtain to filing taxes to business, registrations to renewing licenses.
There are other categories of ecommerce likely to essential and unessential.
Q What are the Nature and Dynamic of Internet?

Nature of Internet
Internet is networks of computer network connected via some guided or unguided media by
sharing resources as well as provide reliable information over the globe. It works in Server
/ client architecture. It is a loosely configured global wide-area network includes more than
31,000 different networks in over 100 different countries. Millions of people visit and
contribute to the Internet, through e-mail and the World Wide Web. Began as a Department
of Defense project in USA.
For detailed information about the history of the Internet:
In the 1950s the U.S. Department of Defense became concerned that a nuclear attack
could disable its computing (and thus planning and coordinating) capabilities. By 1969 the
Advanced Research Projects Agency Network (ARPANet) had been constructed.
The first computers to be connected were ones at the University of California at Los
Angeles, SRI International, the University of California at Santa Barbara, and the University
of Utah.
There are three main organization which are suppose to guide and coordinate the working
of Internet
Internet Society
1. IAB (Internet Architecture Board : responsible for major changes in Internet
2. IRTF ( Internet Research Task Force : search innovatives for Internet
3. IETF (Internet Engineers Task Force : develop & maintain protocols.
The following are the technical detail which is used to establish Internet Connection
1. Sender Computer
2. Receiver Computer
3. Modem
4. Communication Media
5. ISP (Internet Service Provider)
6. Protocol
7. Operating System
Dynamic of Internet
The Internet not only to exchange the information but there are some major impact on
society. World comes very close to each other & Message communication is very fast make
revolution in the earth
Save Time
Save money
Fast decision
Every one has freedom to express their ideas / views.
Criminal record available to every criminal investigation department.
Disappointment is Increase of Crimes
Advancement in new generation.
Services and Applications of Internet
WWW World Wide Web Services

FTP File Transfer Protocol Services
E-MAIL (SMTP- Simple mail transfer protocol)
E-Commerce on-line banking / on-line finance / online sale/ purchase
E-Chat IRC - Protocol
E-Education E-learning, IGNOU one of them who provide e-learning
E-employment E-Job, we can work at our home computer
E-Doctor on line doctor consultant, Medicare
Newsgroup (NNTP- Network News Transfer protocol)
E-Advertisement on line advertisement
E-Entertainment on-line game playing
Q: What do you mean by Brick and Click Business?

Bricks-and-clicks is a business model by which a company integrates both offline (bricks)

and online (clicks) presences. It is also known as click-and-mortar or clicks-and-bricks, as
well as bricks, clicks and flips, flips referring to catalogs.
For example, an electronics store may allow the user to order online, but pick up their order
immediately at a local store, which the user finds using locator software. Conversely, a
furniture store may have displays at a local store from which a customer can order an item
electronically for delivery.
The bricks and clicks model has typically been used by traditional retailers who have
extensive logistics and supply chains. Part of the reason for its success is that it is far
easier for a traditional retailer to establish an online presence than it is for a start-up
company to employ a successful pure "dot com" strategy, or for an online retailer to
establish a traditional presence (including a strong brand).
Advantages of the Bricks and Clicks model

Click and mortar firms have the advantage in areas of existing products and services. In
these cases there are major advantages in retaining ties to a physical company. This is
because they are able to use their competencies and assets, which include:
1. Basic Ability of business: - Successful firms tend to have one or two core
competencies that they can do better than their competitors. It may be anything from
new product development to customer service. When a bricks and mortar firm goes
online it is able to use this core competency more intensively and extensively.
2. Existing supplier networks :- Existing firms have established relationships of trust

with suppliers. This usually ensures problem free delivery and an assured supply. It
can also require price discounts and other preferential treatment.
3. Existing distribution channels :- As with supplier networks, existing distribution

channels can ensure problem free delivery, price discounts, and preferential
treatments.
4. Brand justice:- Often existing firms have invested large sums of money in brand
advertising over the years. This equity can be leveraged on-line by using recognized
brand names. An example is Disney.
5. Stability: - Existing firms that have been in business for many years appear more
stable. People trust them more than pure on-line firms. This is particularly true in
financial services.
6. Existing customer base: - Because existing firms already have a base of sales,
they can more easily obtain economies of scale in promotion, purchasing and
production; economies of scope in distribution and promotion; reduced overhead
allocation per unit; and shorter break even times.
7. Low cost of capital: - Established firms will have a lower cost of capital. Bond
issues may be available to existing firms that are not available to dot coms. The
underwriting cost of a dot com IPO is higher than an equivalent brick and click equity
offering.
Pure dot com. (online company), on the other hand, have the advantage in areas of new
e-business models that stress cost efficiency. They are not burdened with brick and mortar
costs and can offer products at very low marginal cost. However, they tend to spend
substantially more on customer acquisition.
Q: Define perspectives, requirements, planning, designing and

deployment of online business with its risk and threats.
A: During launching of a business online, every company maintain proper business activities with
proper planning, sharp vision, defined perspective, clear objective and common goal of a business
that is profit & goodwill.
Some fundamental issues of a business online are:
1. How we can remove the gap of conventional payment and e-payment

2. Can conventional business can be generalized with e-business
3. Can we promote company and its product online
4. How we can deliver the product to end-user (customer / business house)
As we know in the today’s business environment electronic media play a vital role for the
success of any business. Any business can not be succeeding without the latest
e-communication technology like transmission media and Internet and its technical tools
like computer, mobile phone etc.
Internet play a important role for online business beyond defining vision, mission and goals
hence a well defined business planning design the most powerful business model on line
promotion and marketing of a product.
The main objectives of an E-business model are:
1. More Customers
2. Good Quality
3. Competitive price
4. Less competition
The main objectives of an E-business plan are:
1. How web-site can be identified to community
2. Customer can move easily to merchant web-site
3. Payment is process able from all bankers
Customer
Consumer Merchant
Access web-site
Internet
Online business
model
Online server for Merchant

Consumer / transaction payment bankers
customer
bankers
Phases involve in E-Business
1. Business Planning
2. Business Environment Study
3. Specified the e-business Risk
4. online setup Requirement analysis
5. Design phase
6. Security Analysis phase
7. Marketing Phase
8. Maintenance and Improvement phase
Business Planning
Under consideration of the high competition, good quality product and reliable price with
good profit and goodwill are the main objective of a successful business.
1. Make summary of project with clear objective and goals

2. Define business process in depth
3. Define all legal issues of business
4. Define government issues and solutions
5. Define marking perspective
6. Analysis the competition
7. Identify the management objective
8. Finance planning
Business Environment Study
1. Whether web-site is usable

2. Whether web-site is reachable
3. Whether web-site easily assessable
Specify the e-business risk

1. Production from financial fraud

2. Transactional alteration issue
3. Theft of personal information issue
4. Theft of company information issue
5. Security from all vulnerable aspects
Online setup Requirement analysis
1. Latest Hardware
2. E-Business Software for Internet users
3. E-Business Software for mobile users
4. Security Software for all users
5. High speed e-communication line
Design Phase for E-Business Setup
1. Web Site should be secure in all aspects

2. Design under consideration of common people thinking
3. Web site name should be easily remember-able
4. Easily navigation of web-site
5. Good looking Web-site
6. Easily understandable
7. Dynamic web-site by providing Query result
8. Dynamic web-site by getting feedback
Security Phase for E-business Web-site

1. Security from Intruders
2. Security from Viruses
3. Security from vulnerabilities
4. Use secure and encrypted web-portal
5. Use intelligent software to identify fraud.
Marketing Phase for online Business
1. Online marketing on product globally

2. Web-site optimization during search through search engine
3. All bankers should be in the list for online payment
4. Show your product image with detail specification.
Maintenance and Improvement Phase
1. Get online viewer suggestion

2. Get customer feedback of about web-site and product
3. Add interactive component for online chatting etc
On the suggestion and customer feedback improve your web-site accordingly.
Risk and threats in E-Business

There are vide verities of risk and threats during online trading, because online system are
easily accessible to every one who use the internet hence risk and threats increases
accordingly.
1. Spread of Viruses to corrupt or alter the file

2. Attacks of crackers
3. Denial of Service issue
4. Unauthorized and Unauthenticated happenings
Consequences of risk
1. Direct Financial loss
2. Chance of fraud increase
3. Chance of litigation
4. Loss of market confidence
5. Lost of brand
6. Lost of goodwill
Q What is an Electronic payment system; also define the online payment

mechanism.
Any thing trade for the purpose of gain profit is called business. Any business activity needs
exchange of goods, service by taking or giving payment. The payments in terms of by
exchanging goods, services, money or e-money.
The business is the trend to exchange of goods and services. In history Barter System was
means of exchange, In this system trading occur as per need of both party. The complexity
increase when a farmer who produce apple in their farm need to purchase shoes. He
definitely searches such type of cobbler who is interested to purchase apple. Due to this
conditional purchase system, the money system introduced. 1st coin of gold stamp than
silver, copper, aluminum, steel and paper money then now e-money used to debit and
credit of payment
A. Traditional Payment Methods

● Cash-on-delivery. Many online transactions only involve submitting purchase orders
online. Payment is by cash upon the delivery of the physical goods.
● Bank payments. After ordering goods online, payment is made by depositing cash into
the bank account of the company from which the goods were ordered. Delivery is likewise
done the conventional way.
B. Electronic Payment Methods

● Innovations affecting consumers, include credit and debit cards, automated teller
machines (ATMs), stored value cards, and e-banking.
● Innovations enabling online commerce are e-cash, e-checks, smart cards, and encrypted
credit cards. These payment methods are not too popular in developing countries. They are
employed by a few large companies in specific secured channels on a transaction basis.
● Innovations affecting companies pertain to payment mechanisms that banks provide their
clients, including inter-bank transfers through automated clearing houses allowing payment
by direct deposit.
An electronic payment system (EPS) is a system of financial exchange between buyers

and sellers in the online environment that is facilitated by a digital financial instrument (such
as encrypted credit card numbers, electronic checks, or digital cash) sponsor by a bank, an
intermediary, or by legal tender. EPS plays an important role in e-commerce because it
closes the e-commerce loop.
Fewer use of E-Payment by the Consumer

Cash is the preferred mode of payment not only on account of security but also because of
secrecy, which is useful for tax avoidance or steeling purposes or keeping secret what
one’s money is being spent on.
Mechanism of E-Payment
DEBIT CARD
Debit card is a plastic card that provides the cardholder electronic access to his or her bank
accounts at a financial institution. Some cards have a stored value with which a payment is
made, while most relay a message to the cardholder's bank to withdraw funds from a
designated account in favor of the payee's designated bank account. The card can be used
as an alternative payment method to cash when making purchases. In some cases, the
cards are designed exclusively for use on the Internet, and so there is no physical card.
Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for
withdrawing cash and as a check guarantee card. Merchants may also offer cash back
facilities to customers, where a customer can withdraw cash along with their purchase.
CREDIT CARD
Credit card is a small plastic card issued to users as a system of payment. It allows its
holder to buy goods and services based on the holder's promise to pay for these goods and
services. The issuer of the card creates a revolving account and grants a line of credit to
the consumer (or the user) from which the user can borrow money for payment to a
merchant or as a cash advance to the user.
Credit cards allow the consumers a continuing balance of debt, subject to interest being
charged. A credit card also differs from a cash card, which can be used like currency by the
owner of the card. Most credit cards are issued by banks .
WIRE TRANSFER
Wire transfer or credit transfer is a method of electronic funds transfer from one person or
institution (entity) to another. A wire transfer can be made from one bank account to
another bank account or through a transfer of cash at a cash office. Wire transfer systems
are intended to provide more individualized transactions than bulk payment systems such
as ACH (Automated Clearing House)
Different wire transfer systems and operators provide a variety of options relative to the
immediacy and finality of settlement and the cost, value, and volume of transactions. More
immediate settlement systems tend to process higher monetary value time-critical
transactions; have higher transaction costs, and a smaller volume of payments. Currency
transaction risk (because of market fluctuations) may be reduced (in part) by immediacy of
settlement.
Smart Card
A smart card is a plastic card about the size of a credit card, with an embedded with
microchip or micro processor that can be loaded with data, used for telephone calling,
electronic cash payments and then periodically refreshed for additional use. Currently or
soon, you may be able to use a smart card to:
 Medical Health care, Vehicle Registration Certificate, Driving License, I-Card etc.etc.
 Dial a connection on a mobile telephone and be charged on a per-call basis
 Establish your identity when logging on to an Internet access provider or to an online
bank
 Pay for parking at parking meters or to get on subways, trains, or buses
 Give hospitals or doctors personal data without filling out a form
 Make small purchases at electronic
How Smart Cards Work

A smart card contains more information than a magnetic stripe card and it can be
programmed for different applications. Some cards can contain programming and data to
support multiple applications and some can be updated to add new applications after they
are issued. Smart cards can be designed to be inserted into a slot and read by a special
reader or to be read at a distance, such as at a toll booth. There are two leading smart card
operating systems: JavaCard and MULTOS
Other potential benefits include:
• Transaction speed: Traditional paper transactions are frequently quite slow, especially if
payments must be mailed over any great distance. Because only the transfer of information
between computers is involved, EFT eliminates those distances. Your payments are more
likely to be timely, and you’ll receive money owed as quickly as possible.
• Reduce manpower: Depending upon the size and nature of your business, EFT may also
free some of your employees from payroll duties. The creation, printing and distribution of
employee earnings, utility payments and creditor bills take time, but EFT automates much
of that work.
• Increased Security: Transfer of electronic funds is a more secure form of payment than
traditional methods. Business owners that mail checks must consider the possibility that
those checks may be lost or tampered with in transit. Immediate electronic confirmation of
payment receipt through EFT serves to eliminate some of those concerns.
Q What is Mobile Commerce or Mobile Payment)?
Mobile commerce is a natural successor to electronic commerce. The capability to pay

electronically coupled with a website is the engine behind electronic commerce. Electronic
commerce has been facilitated by automatic teller machines (ATMs) and shared banking
networks, debit and credit card systems, electronic money and stored value applications,
and electronic bill presentment and payment systems. Mobile payments are a natural
evolution e-payment schemes that will facilitate mobile commerce.
A mobile payment or m-payment may be defined, for our purposes, as any payment where
a mobile device is used to initiate, authorize and confirm an exchange of financial value in
return for goods and services. Mobile devices may include mobile phones, PDAs, wireless
tablets and any other device that connect to mobile telecommunication network and make it
possible for payments to be made.
The realization of mobile payments will make possible new and unforeseen ways of
convenience and commerce. Music, video on demand, location based services identifiable
through mobile handheld devices – procurement of travel, hospitality, entertainment and
other uses are possible when mobile payments become feasible.
Mobile payments can become a complement to cash, cheques, credit cards and debit
cards. It can also be used for payment of bills with access to account-based payment
instruments such as electronic funds transfer, Internet banking payments, direct debit and
electronic bill presentment.
Mobile Payment Characteristics
A mobile payment service in order to become acceptable in the market as a mode of

payment the following conditions have to be met:
a) Simplicity and Usability: The m-payment application must be user friendly with little
or no learning curve to the customer. The customer must also be able to personalize
the application to suit his or her convenience.
b) Universality: M-payments service must provide for transactions between one

customer to another customer (C2C), or from a business to a customer (B2C) or
between businesses (B2B). The coverage should include domestic, regional and
global environments. Payments must be possible in terms of both low value micro-
payments and high value macro-payments.
c) Interoperability: Development should be based on standards and open technologies

that allow one implemented system to interact with other systems.
d) Security, Privacy and Trust: A customer must be able to trust a mobile payment
application provider that his or her credit or debit card information may not be
misused. Secondly, when these transactions become recorded customer privacy
should not be lost in the sense that the credit histories and spending patterns of the
customer should not be openly available for public scrutiny. Mobile payments have
to be as anonymous as cash transactions. Third, the system should be foolproof,
resistant to attacks from hackers and terrorists. This may be provided using public
key infrastructure security, biometrics and passwords integrated into the mobile
payment solution architectures.
e) Cost: The m-payments should not be costlier than existing payment mechanisms to
the extent possible. A m-payment solution should compete with other modes of
payment in terms of cost and convenience.
f) Speed: The speed at which m-payments are executed must be acceptable to

customers and merchants.
g) Cross border payments: To become widely accepted the m-payment application must
be available globally, word-wide.
Mobile Payment Solutions
Mobile payment solutions may be classified according to the type of payment effected, and
based on the technology adopted to implement the solution.
 Bank account based
 Credit card based
 Telecommunication company billing based
Bank Account based M-Payment
Banks have several million customers and telecommunication operators also have several
million customers. If they both collaborate to provide an m-payment solution it is a win-win
situation for both industries. In this model, the bank account is linked to the mobile phone
number of the customer. When the customer makes an m-payment transaction with a
merchant, the bank account of the customer is debited and the value is credited to the
merchant account.
Credit Card based M-Payment
In the credit card based m-payment model, the credit card number is linked to the mobile
phone number of the customer. When the customer makes an m-payment transaction with
a merchant, the credit card is charged and the value is credited to the merchant account.
Credit card based solutions have the limitation that it is heavily dependent on the level of
penetration of credit cards in the country. Only this small segment of the population will
benefit in the credit card based model. Though limited in scope, there may be high demand
within this segment for a payment solution with credit cards and also, may provide high
volumes of transactions.
Telecommunication Company Billing of M-Payments

Customers may make payment to merchants using his or her mobile phone and this may
be charged to the mobile phone bills of the customer. The customer then settles the bill
with the telecommunication company. This may be further classified into prepaid airtime
(debit) and postpaid subscription (credit).
Q: What Technologies are used for Mobile Payments

The mobile technology background provides various possibilities for implementing m-
payments. Essentially, a GSM (Global System for Mobile Communication) mobile phone
may send or receive information (mobile data service) through three possible channels –
SMS (Short Message Service), USSD (Unstructured Supplementary Service Delivery) or
WAP (Wireless Application Protocol) /GPRS (General Packet Radio Service). The choice of
the channel influences the way m-payment schemes are implemented. Secondly, the m-
payment client application may reside on the phone or else it may reside in the subscriber
identity module (SIM).
SMS (Short Message Service)

This (SMS) Short Message Service is a text message service that enables short messages
(140-160 characters) that can be transmitted from a mobile phone. Short messages are
stored and forwarded by SMS centers. SMS messages have a channel of access to phone
different from the voice channel. SMS can be used to provide information about the status
of one’s account with the bank (informational) or can be used to transmit payment
instructions from the phone (transactional).
Unstructured Supplementary Services Delivery (USSD)

Unstructured Supplementary Service Data (USSD) is a technology unique to GSM. It is a
capability built into the GSM standard for support of transmitting information over the
signaling channels of the GSM network. USSD provides session-based communication,
enabling a variety of applications. USSD is session oriented transaction-oriented
technology while SMS is a store-and-forward technology. Turnaround response times for
interactive applications are shorter for USSD than SMS.
WAP/GPRS
General Packet Radio Service (GPRS) is a mobile data service available to GSM users.
GPRS provides packet-switched data for GSM networks. GPRS enables services such as
Wireless Application Protocol (WAP) access, Multimedia Messaging Service (MMS), and
for Internet communication services such as email and World Wide Web access in mobile
phones.
SIM-based Application
The subscriber identity module (SIM) used in GSM mobile phones is a smart card i.e., it is
a small chip with processing power (intelligence) and memory. The information in the SIM
can be protected using cryptographic algorithms and keys. This makes SIM applications
relatively more secure than client applications that reside on the mobile phone. Also,
whenever the customer acquires a new handset only the SIM card needs to be moved
(Card Technology, 2007). If the application is placed on the phone, a new handset has to
be personalized again.
Mobile Wallet
M-payment application software that resides on the mobile phone with details of the
customer (and his or her bank account details or credit card information) which allows the
customer to make payments using the mobile phone is called as a mobile wallet.
Customers can multi-home with several debit or credit payment instruments in a single
wallet. Several implementations of wallets that are company-specific are in use globally.
Q: What is Internet Banking (E-Banking?)

Internet banking refer to E-Banking. In the recent pas use of Internet for delivery of bank
product and services. Internet Banking has changed the Banking Industries scenario by
enhancing banking relations and business. In this system, the customer have no need to
visit bank for any query or any banking activities. For any such inquiry or transaction
process, take the help of net banking / E-Banking.
E-Banking (EB) EB refer to any banking activities by a customer through using Networked
Computer / Internet to perform all such banking activities. The Synonym of E-Banking are
IB(Internet Banking), VB ( Virtual Banking) , OB (Online Banking), HB (Home Banking) ,
REB (Remote Electronic Banking), WB (Web Banking) and PB (Phone Banking) etc.
E-banking includes familiar and relatively mature electronically-based products in

developing markets, such as telephone banking, credit cards, ATMs, is the e-banking tools
e-Banking is offering all such services that traditional Physical Bank provides:-
Benefits of E-Banking
1. Lower operational and transactional cost for customer

2. No need to wait in queue for any banking activities in Bank
3. Easy to transfer fund electronically from one a/c to another a/c
4. No need to withdraw cash, transaction is possible through e-cash
5. Web Banking has no geographical boundary restriction for e-transaction
6. Information, Inquiry available round the clock
7. Easy to access own recent and earlier transaction as and when required
8. To apply for any service or to fill form, no need to go to bank
9. Avoid brokers and get any bank services at vary reasonable cost.
Type of E-Banking
1. Informational E-Banking
2. Communicative E-Banking
3. Transactional E-Banking
1. Informational E-Banking :- In informational ebanking, main motive of bank industries

are marketing strategy. How a product and services can to reach at any instant. To
access such information risk is vary less because there is no direct connectivity of such
information with the internal banking system.
2. Communicative E-banking :- In communicative process the main emphasis on the

emailing, filing of applications and feedback etc. In this type risk increase, because
customer are partly connected with internal banking process. It is necessary for bank to
control all vulnerabilities by secure system from spams, virus, trojens, worm etc.
3. Transactional E-Banking ;- This is vary important part of e-banking to secure all the
transactional activities between customer and bank. In this type of ebanking risk are
higher because all the fund transfer, payment involve in it hence security from intruders,
hackers and crackers are necessary in transactional ebanking system.
Q Define risk in E-banking
Information technology is the main aspect in the current e-banking system because if any
bank does not provide the web services will go out of business. Global banking in the
business hence needs transparency in the system. Follow demand and supply rule,
customer want e-service at vary low or no cost.
Main issue to avoid internet banking risks

1 Security from intruders, hackers and crackers.
2 Protect customer privacy
3 Protection against fraud
4 Use of anti-fishing software
5 Use of digital certificate
Risk of E-Banking
1. Transactional / Operational Risk
2. Credit Risk
3. Compliance / Legal risk
4. Strategic risk
5. Risk of reputation
Transactional / Operational Risk

Transaction Process Error risk
System disruption (interference) risk
Unauthentic events resulting frauds / counterfeit.
Credit Risk
As far as the online system is concern all the application filling processes are through
online hence we should take more precaution like verification of customer ID, verification of
resources for repayment of credit, we should regular monitoring of credit limits of bank to
pay loan , advances etc.
Compliance / Legal risk

Rapid growth of e-paper compliance, during legal preceding some time bank compliance
are illicit due to e-paper and e-work.
As we know simple e-mail which have no authentic source, can not be used as proof for
legal proceeding in law of Hon’ble court.
E-agreement are fully in risk to prove it legally
Strategic risk
Strategies are plans and if plan is not correct, no company can get rise up
Hence we should consider on the following risks

1. Poor Investment plans
2. Wrong Investment decision
3. Poor E-banking portal risk
4. Overseeing of E-banking vendor and technology service providers
Risk of reputation
Any unauthentic information on E-banking portal will create risk of reputation and bank lost
the following:-
1. Lost of trust due to unauthentic information
2. Customer will face difficulties resulting break in relations
Q : What is SET (Secure Electronic Transaction)
Secure Electronic Transaction (SET) is a system for ensuring the security of financial
transactions on the Internet. It was supported initially by Mastercard, Visa, Microsoft,
Netscape, and others. With SET, a user is given an electronic wallet (digital certificate) and
a transaction is conducted and verified using a combination of digital certificates and digital
signatures among the purchaser, a merchant, and the purchaser's bank in a way that
ensures privacy and confidentiality. SET makes use of Netscape's Secure Sockets Layer
(SSL), Microsoft's Secure Transaction Technology (STT), and Terisa System's Secure
Hypertext Transfer Protocol (S-HTTP). SET uses some but not all aspects of a public key
infrastructure (PKI)
How SET works:

Assume that a customer has a SET-enabled browser such as Netscape or Microsoft's

Internet Explorer and that the transaction provider (bank, store, etc.) has a SET-enabled
server.
1. The customer opens a MasterCard or Visa bank account. Any issuer of a credit card
is some kind of bank.
2. The customer receives a digital certificate. This electronic file functions as a credit
card for online purchases or other transactions. It includes a public key with an
expiration date. It has been through a digital switch to the bank to ensure its validity.
3. Third-party merchants also receive certificates from the bank. These certificates
include the merchant's public key and the bank's public key.
4. The customer places an order over a Web page, by phone, or some other means.
5. The customer's browser receives and confirms from the merchant's certificate that
the merchant is valid.
6. The browser sends the order information. This message is encrypted with the
merchant's public key, the payment information, which is encrypted with the bank's
public key (which can't be read by the merchant), and information that ensures the
payment can only be used with this particular order.
7. The merchant verifies the customer by checking the digital signature on the
customer's certificate. This may be done by referring the certificate to the bank or to
a third-party verifier.
8. The merchant sends the order message along to the bank. This includes the bank's
public key, the customer's payment information (which the merchant can't decode),
and the merchant's certificate.
9. The bank verifies the merchant and the message. The bank uses the digital
signature on the certificate with the message and verifies the payment part of the
message.
Q: What are the Laws related to Online Transaction

India got its first Act Information Technology Act, 2000 (“IT Act), which fell far short of the
Industry’s requirements to meet global standards. The focus if the IT Act was however
recognition of electronic records and facilitation of e -commerce. Hardly ten sections were
incorporated in the IT Act to deal with Cyber Crime. At the time when the IT Act was
passed several acts think to be illegal in most jurisdictions including virus attacks, data
theft, illegal access to data / accessing and removal of data without the consent of the
owner, etc., were listed as civil penalties under the IT Act. The primary offences under the
IT Act were:
1. Tampering with source code;
2. Deleting, destroying or altering any data on any computer resource with objective
to cause wrongful loss or to reduce its value
3. Publishing or transmitting pornographic material through a computer resource
4. Provisions pertaining to encryption technology, the right of the Government

authorities to intercept and decrypt such data and to call upon any entity or
individual to decrypt such data were also included in the IT Act. Certain acts
affecting the integrity and sovereignty of the nation were classified as offences.
The saving grace of the IT Act were the amendments carried out to the IPC (Indian Pannel
Court) and Evidence Act, which to some extent provided for hearing of out of control
offences like the Nigerian Scams, Phishing and other Banking frauds may be guilt. Further,
crimes like data theft; illegally accessing / removal of data; virus attacks etc., could not be
charges due to the lack of relevant penal provisions. S.66 of the Act misleadingly titled
“hacking” is one of the most misused and abused provisions in India.
Some significant amendments in the definition sections include:
The replacement of the word “Digital” with the word “Electronic”, which makes the IT Act
more technology neutral and expands its applicability beyond just the digital medium.
1. Addition of cell phones, personal digital assistants and other such devices
in the definition of “Communication Devices” expand the scope of the law.
2. The modified definition of “Intermediary” includes all service providers in respect

of electronic records again broadens the applicability while addition of Cyber
cafes in the definition of Intermediaries removes the need to interpret the Law.
The extensive definition of “cyber security” as including protection of both data and the
equipment from unauthorized access, use, disclosure etc., is another vital inclusion that
impacts the new Data Protection provisions included under the IT Act, 2008.
Data Protection Provision under IT Act of S.43 : In this act It is mentioned that without
the permission of the owner or person in charge of the computer or computer systems
such as:
1. Securing access (without permission)
2. Downloading or copying of data stored in a computer or computer system
3. Introducing computer viruses
4. Damaging computers and or data stored therein
5. Disrupting computers
6. Denial of access
7. Illegal charging for services on another’s account.
Data Protection under ITA Act 2008 of S.43A : - S.43A specify that any “Body
Corporate” possessing, dealing with or handling any “sensitive personal data or
information” in a computer resource it owns, controls or operates, is liable for
carelessness, if it fails to maintain “reasonable security practices and procedures” and
thereby causes wrongful loss or wrongful gain to any person. S.43 of the IT Act has now
been qualified as criminal offences under the ITA 2008 under S. 66.
Further analysis of the data protection legislation instead of financial transaction
One of the important outcomes of the ITA, 2008 amendments is the clarity on whether
Data theft is considered a criminal offence. Commission of acts provided in S.43 to 66
dishonestly or fraudulently, clearly implies “Data Theft” as an offence in such instances.
However these acts would amount to a punishable offence only if such data is
“downloaded, copied or extracted” from a computer resource.
Act related to exploit cyber Confidentiality & Privacy
The widespread circulation of a MMS clip shot by a Delhi schoolboy. This case took an
unexpected twist when this clip was circulated on Bazee.com and its Chief Executive
Officer of American origin was arrested. S.66E has now been introduced under the ITA,
2008 for the protection of physical or personal privacy of an individual. This section makes
intentional capturing of the images of a person’s private parts without his or her consent in
any medium and publishing or transmitting such images through electronic medium, a
violation of such person’s privacy punishable with imprisonment of up to three years or
with fine up to Rupees Two Lakhs, or both.
A case of posting of the personal information and obscene material on a Yahoo! Site
was advertised as the fastest trial and conviction of a cyber crime case in Chennai. It
appears that this conviction has recently been reversed. S.72 A of the ITA, 2008 now
explicitly provides recourse against dissemination of personal information obtained
without the individual’s consent through an intermediary or under a services contract, with
intent to cause wrongful loss or wrongful gain. The maximum punishment prescribed
for this offence is three years imprisonment, or fine up to Rupees Five Lakhs or both.
Service providers on the Internet, social networking sites, Companies, firms,

individuals and other intermediaries ought to now be careful in the collection, retention
and dissemination of personal data. Interactive websites and P2P site operators also
have to be extremely careful to ensure that the provisions of S.66E & S.72 A are not
violated.
Act related to Cyber banking fraud
Provisions to fight cyber frauds have now been introduced under the ITA 2008. However
certain issues relating to protection against banking frauds such as Phishing, money
transfers through online hacking, email frauds and cyber squatting (including through
willfully misleading domain names) to name a few have not been addressed separately in
the ITA, 2008, even though these are significantly increasing problems.
Act related to use of fake cyber identity
Cyber Act S.66C inserted by the ITA, 2008 makes dishonest or fraudulent use of a
person’s electronic signature or identity, password or any other unique identification
feature punishable as theft with imprisonment of up to three years and fine up to Rupees
One Lakh.
Act related to cyber pornography
In addition to S.67 of the IT Act, S.67A and S.67B have been included by the ITA, 2008
inter alia to combat child pornography. S.67A makes transmission of a sexually explicit
act or conduct punishable and S.67B makes publishing and transmission of child
pornography an offence, punishments for which range from five to seven years and fine.
Several exceptions have also been set out to S.67 and S.67A, including for depictions in
any book, pamphlet, paper, writing, drawing, painting representation or figure in electronic
form.
Q: Explain Digital Signature?
A digital signature (not to be confused with a digital certificate) is an electronic signature

that can be used to authenticate the identity of the sender of a message or the signer of a
document, and possibly to ensure that the original content of the message or document
that has been sent is unchanged. Digital signatures are easily transportable, cannot be
imitated by someone else, and can be automatically time-stamped. The ability to ensure
that the original signed message arrived means that the sender cannot easily repudiate it
later.
A digital signature can be used with any kind of message, whether it is encrypted or not,
simply so that the receiver can be sure of the sender's identity and that the message
arrived intact. A digital certificate contains the digital signature of the certificate-issuing
authority so that anyone can verify that the certificate is real.
How It Works
Assume you were going to send the draft of a contract to your lawyer in another town. You
want to give your lawyer the assurance that it was unchanged from what you sent and that
it is really from you.
1. You copy-and-paste the contract (it's a short one!) into an e-mail note.
2. Using special software, you obtain a message hash (mathematical summary) of the
contract
3. You then use a private key that you have previously obtained from a public-private
key authority to encrypt the hash.
4. The encrypted hash becomes your digital signature of the message. (Note that it will
be different each time you send a message.)
Q What is Network security, how we can secure our e-transaction or

e-payment from vulnerabilities
Network Security: Intruders are always discovering the vulnerability (holes, weaknesses)
to exploit the Software as well as Hardware. In a Computer network The Security and
Crimes affect every one. That we know if any person use internet can be attacked, hacked
or infected by malicious functionalities or downloading etc. It is important to know that how
computers hacked or how we can protect him self from the unlawfulness (unwanted)
happenings. Before Secure our system we need to know about the Attackers, Hackers and
Crackers who create harms to networks.
The network security is a protection against the unauthorised, unauthenticated users,

unwanted modification and manipulation, destructions and harmful effects to network.
Attackers: The attackers are the person, software that deliberately (consciously,
intentionally) attempt to acquire the unauthorised access of the network resources
information. The attackers are attacks on corporate instead of individuals.
Attacks are of two types.
Passive attacks: These types of attacks are access the information without knowledge of
the Source and Destination User. These attacks only watch on the transmission of data but
it does not try to modify the data or packets.
Active attacks: These types of attacks are used to change the data and deliberately send
the wrong data on the destination or change the path and disturb the network performance
too.
The most damaging attacks are DoS (Denial of Service) attacks. These are the data
flooding with high speed or slow speed that a victim can not process or process can not
reach the destination.
When multiple computer attacks on a single computer than it is known as DDoS

(Distributed Denial of Services) so that Some time a single computer control the many
computer with the help of Trojan program.
A vary good example of attacks are unsolicited (spontaneous, unwanted) e-mail most
commonly known as e-mail spam’s, these mails are used to send for the purpose of
advertisement etc.
The another attacks are
Verbal attacks: These are the abusing people
Clone Attacks: These attacks slow down the server performance where IRC fail to
respond.
Flood attacks: It means two or more attacks combine and slow down the process.
Ways to prevent attacks:
Don’t try to irritate any one in the network.

Use firewall to prevent attacks
Some algorithm used to identify the suspected pattern and prevents it.
Secure E-Transaction and E-payment from vulnerability
1. Secure Socket Layer The Secure Sockets Layer (SSL) is a commonly-used

protocol for managing the security of a message transmission on the Internet. SSL has
recently been succeeded by Transport Layer Security (TLS), which is based on SSL. SSL
uses a program layer located between the Internet's Hypertext Transfer Protocol (HTTP)
and Transport Control Protocol (TCP) layers. SSL is included as part of both the Microsoft
and Netscape browsers and most Web server products. Developed by Netscape, SSL also
gained the support of Microsoft and other Internet client/server developers as well and
became the de facto standard until evolving into Transport Layer Security. The "sockets"
part of the term refers to the sockets method of passing data back and forth between a
client and a server program in a network or between program layers in the same computer.
SSL uses the public-and-private key encryption system from RSA, which also includes the
use of a digital certificate.
TLS (Transport Layer Security) and SSL are an integral part of most Web browsers
(clients) and Web servers. If a Web site is on a server that supports SSL, SSL can be
enabled and specific Web pages can be identified as requiring SSL access. Any Web
server can be enabled by using Netscape's SSLRef program library which can be
downloaded for noncommercial use or licensed for commercial use.
TLS and SSL are not interoperable. However, a message sent with TLS can be handled by
a client that handles SSL but not TLS.
2. S-HTTP (Protocol) :- S-HTTP (Secure HTTP) is an extension to the Hypertext

Transfer Protocol (HTTP) that allows the secure exchange of files on the World Wide Web.
Each S-HTTP file is either encrypted, contains a digital certificate, or both. For a given
document, S-HTTP is an alternative to another well-known security protocol, Secure
Sockets Layer (SSL). A major difference is that S-HTTP allows the client to send a
certificate to authenticate the user whereas, using SSL, only the server can be
authenticated. S-HTTP is more likely to be used in situations where the server represents a
bank and requires authentication from the user that is more secure than a userid and
password.
S-HTTP does not use any single encryption system, but it does support the RSA (Rivest-
Shamir-Adleman) algorithm public key infrastructure encryption system. SSL works at a
program layer slightly higher than the Transmission Control Protocol (TCP) level. S-HTTP
works at the even higher level of the HTTP application. Both security protocols can be used
by a browser user, but only one can be used with a given document.
Q: What is Data Encryption Secrete key and public key?

A: Data Security is the main aim during data transmission over the network. The Data
encryption is a process of right data on the right destination by maintaining integrity and
security. The data security means security from intruders enemy etc. Security means
protection from unauthorized access. The data encryption is a technique to safe guard
data from unauthenticated users.
Data Encryption: It is the process to change the actual data in to another format. This
format is read by only authorized user. The encryption done on the presentation layer of
OSI model.
In conventional encryption the original message convert into random message or non-
sense message. It is known as cipher text. The encryption process consists of an algorithm
and an encryption key. The algorithm produce different out depend upon the key
encryption.
Source Destination
Encryptor Decrypter
Original Original
Message
Message
Encrypted
Key
The success of encryption depends upon the powerful algorithm and secrete key.
Two type of Encryption : 1) Private Encryption 2) Public Encryption
In private encryption the key is known by the sender and receiver computer only. It is know
as dedicated or private encryption
In public encryption data encryption approach is given be Hell man & Diffie in 1976. It is
based on mathematical function. Each system entered in the network generates two or pair
of key which one for encryption and other for decryption.
In public key encryption a public key store in public register of each system in a network. If
a system ‘B’ want to send data to System ‘A’. B use the public key of ‘A’ and send data to
its destination.
In public encryption, encryption is based on authentication of user mean a right user can
access the right message.
Encryption Process
It is process to hide the original data and convert it in to nonsense form for the
unauthorised user. It protects the data or file from unauthorised gain access.
Encryptions perform at sender end and decrypt at receiver end. For encryption and
decryption a special key is used. The encryption done on physical, transport and
presentation layer.
Method of Encryption
The Encryption depend upon the following factor
1. The algorithm must be powerful

2. Key should be secrete
The Encryption used the following key to encrypt or decrypt the data
Private Key : Known by the sender and receiver only
Public Key In public key encryption the sender take the receiver user encrypt key from
the public key register and the user can decrypt by it private key available in its computer.
Cryptography Technique to encrypt the data
Encryption: The conventional method of encryption is to change the text in the random form
through the key.
Original message ------ Encrypted algorithm ------- Decrypted algorithm

| |
| |
Encryption key Original text
1. Plain Text
2. Encryption key
3. Cipher Text
Method of Encryption
 Substitution Cipher Technique

 Transposition Cipher Technique
In substitution encryption technique the plain text convert with prescribed key text.
Suppose we want to encrypt the plain text like BAD
Plain text B AD
Encryption key ABCDEFGHIJKLMNOPQRSTUVWXYZ

ZYXWVUTSRQPONMLKJIHGFEDCBA
Cipher text YZW
In Transposition Cipher Technique we use a key of words or phase which no duplicate

character used in the key as known a transposition key. We assign the key serial according
to alphabet in English suppose A= 1 B=2 C=3 so on
Plain text Hello how are you

2 1 3 4
Suppose we used a non-duplicate char. Key i.e R E S T
Plain text (How are you) h o w a

r e y o
u
Cipher text oe, hru, wy, ao
The Other Technique

RSA (Rivest Shamir Adleman) algorithm
SSL (Secure Socket Layer)
PPTL (Point to Point Tunnelling Protocol)
Suppose an intruder / enemy listen or see the transcripted code, without key there is no
means of Tran-scripted message for the Intruder. SO Writer Kerch Hoff says that All the
algorithm can be public but transcript key should be secrete.
Q: What do you mean by One to One Enterprise or 1:1 marketing?
Globalization and technology improvements have exposed Enterprise to a situation with

hard competition. In this new era Enterprise are focusing on managing customer
relationships in order to efficiently and maximize the revenues.
Today marketing is not just developing, delivering and selling, it is moving towards
developing and maintaining long term relationships with customers. CRM (Customer
Relationship marketing) is becoming important in any services. Enterprise really need to
look at areas where opportunities lies and the ability to move money around with a click of
a mouse are making it easier for customers to leave one enterprise for another. In this
situation CRM (Customer Relationship Management) is an opportunity that an enterprise
can avail to rise above minor advantages by developing actual relationships with their
customers.
A most valuable proverb by a philosopher is that “One satisfied customer in 10 years brings
100 more”. So One to one Enterprises mean treat different vendor or customer differently. It
means every individual should be looked or take care separately. It also means customize
of product and services to each customer as per their needs.
To implement one to one Enterprise, we implies three distinct computer capabilities like
1. Database
2. Interactivity
3. Mass customization
Through these capabilities, the enterprise can keep track of customers individually.
In one to one marketing consider the following
1. Identifying customer Individually

2. Understand needs of one customer
3. Determine the profitable and goodwill customer
4. Determine growth potential Enterprise
5. Fulfill customer demand as per needs.
One to One Enterprise or marketing
One to one marketing is CRM (Customer Relation Management) mean better interaction
with customer.
1. One to one marketing differentiate customer

2. In mass marketing company’s main emphasis to manage product
3. Mass marketing is go through advertisement
4. In one to one marketing, Organization know how to manage customer.
5. In 1: 1 marketing is through colobration
Definition of CRM (customer relationship management)
CRM as defined by Kotler, is the process of utilizing detailed information about

individual customers & carefully managing all the customers’ with the aim of maximizing
customer loyalty. The final objective of the CRM process is to create a powerful new tool for
customer retention, customer value, customer achievements & profitability.
CRM Management:
1. Ensuring all efforts should be used for marketing, sales and services.
2. Combine marketing, sales and services activities to achieve common goal.
3. Update knowledge of customer needs continuously
4. Apply customer knowledge, to learning from their success and failure
5. Develop ability to retain loyal and profitable customer.
6. Acquire right customer based on characteristics
CRM TECHNOLOGY:
The bank is using following technology software to interact with its customers. The bank
views CRM technology as customer-centric process and it can help us to automate the
whole processes otherwise it is impossible to handle all the information manually
1. Call Center Management

2. Contact management
3. Data warehousing,
4. Knowledge management
5. Sale & Marketing automation
Step to manage one to one marketing or Enterprises
There are four (4) keys to management the 1: 1 marketing
1. Identify the valuable Customer

2. Differentiate valuable customer with other customer
3. Interact with customer
4. Customization in business
Identify the valuable Customer
Collect more and more details of customer to review his present and past. Collect the
name, address, age, income, habits and reason for dealing with you.
Differentiate valuable customer with other customer
1. According to level of value of customer

2. Identify the needs of customer
3. Customer efforts and priority to gain the product
With the degree of need the organization can decide the need
Interact with customer
1. An Enterprise should attract customer by interact individually

2. Right information to right person at right time during interaction.
3. More interaction more efficient drives of a business.
4. Advertise your web-site and business through call centers
5. For effective interaction, always provide reliable and relevant information
6. Through interaction, help customer to take right decision to purchase goods
7. Compensate sale representative to specify the need / demand of customers.
Customization in business
1. According to need and value of customer, Enterprise should customize their

behavior in some aspect.
2. In B2B firms they mass customize in production and in services and develop and
execute strategy for individual enterprises.
3. The most valuable Enterprises also require they must be treated as with individual
need, wants and desires.
Q: What technology and Infrastructure required for online Business
The Technology means how we can send information one source to another destination
where Infrastructure is the hardware, software tools that we have used to transmit data
successfully in the network. A Network may be of any kind like computer network, mobile
network, Internet-work, Internet, Intranet, Extranet, Business network, Customer Network,
community network etc.
The technology has extended the scope and area of business. In this competitive
environment all technologies are imparted in the center on computers, cell phones and the
Internet. We have rotated our daily lives, need as well as business surrounding with these
technologies. Internet is gaining rapid popularity with every passing day. As the Internet
supported communities grow and assuming that they do certainly extend to include
individuals around the globe. Innovative improvement is always required to ride the
expected or predictable move of change. Indeed, the success of online Business depends
on driving the right force in the right direction of demands, productivity and services to
achieve continuous and constant growth.
Without a doubt, technology is truly a revolutionary phase for almost all business
organizations. Because of the technology's ease of adoption, significantly lower
maintenance costs, and greater work efficiency, there is no doubt that online business is
gaining widespread popularity in the world
In present global and competitive e-market, companies must get the most from its
resources to succeed hence technology for e-business requires enabling its employees,
business partners, and users with the platforms that promote business over the globe.
The Information Technology (IT) tools like

1. Hardware
2. Software
3. Telecommunication
4. Communication Media
5. ISP
6. Protocol
7. Network Architecture & its type
8. Network Topology
that provide a means to accelerate the adoption of new heights for online business.
Hardware
Computer System Latest Technology upgraded
Network Devices : Repeater, Switch, HUB
Bridge,Router etc.
Network Interface Card (NIC)
Modem : DSL, ADSL
Modem is an electronic device used to convert Digital to Analog and Analog
to Digital signal. So It is called as modulator and demodulator device. It can
be install on the expansion slot inside the computer or also available as
External Modem. It can be install on serial as well as USB port of the
computer. Modem works as a bridge between the telephone line and the
computer. There are two type of modem
Software
Network Operating System
Web Browser
EDI (Electronic Data Interchange)
WWW (World Wide Web)
Search Engine
E-Commerce, E-Business Web-Portal
Firewall, Antivirus, Security Software
Telecommunication
Telephone Line : ISDN

PSTN
Lease Line
Broad Band etc
Communication Media
Guided : UTP, STP, Coaxial , Fiber optic
Unguided : Radio Frequency, WiFi, VSAT
ISP (Internet Service Provider)

ISP is who provide the Internet services to its local user. It works in Server / Client
architecture. It mean on who provide the service is called server and one who access the
services are called Client.
In India, Internet came in the existence in 1995. The company named VSNL (Videsh
Sanchar Nagam Limited) started a service (GIAS) Gateway Internet Access Services for
the Local users in India.
Today there are major ISP in India are BSNL, Satyam, Sify, Reliance,Airtel etc
Protocol
Protocols are predefined set of rules which is design to successfully interconnect and
transmit data between two or more communicational entity.
TCP/IP (Transmission Control Protocol / Internet Protocol)

OSI (Open System Interconnection)
HTTP (Hyper Text Transfer Protocol)
SMTP (Simple Mail Transfer Protocol)
FTP (File Transfer Protocol)
IRC (Internet Relay Chat)
SHTTP (Secure Hypertext transfer protocol)
SSL (Secure Socket Layer)
Network Architecture and its type

Type : LAN, MAN, WAN
: Internet, Intranet, Extranet
Architecture : Peer to Peer Architecture

: Client Server Architecture
Network Topology
A network topology is a computer network standard developed by IEEE
(Institute of Electronic and Electrical Engineer) Group with different speed and technique
and technology.
BUS
STAR
RING
TREE
MESH
With the help of technology and IT infrastructure we can successfully perform all of our e-
commerce, e-business, e-transaction activity over the globe
Q: What are middleware contents (consist of): text and integrating e-

business applications?
Ans : In the fast growing and moving telecommunication market, it is essential to adopt
market changes and also add new feature or services quickly.
Today’s e-business environments in the center of computer, cell-phone and Internet

services and technology (skill / equipments), but to access these services and equipment
we requires some middleware. The middleware are those tools and technique which
through, we can join or integrate two or more communication entity like two or more e-
business organization.
The common middleware are
1. Network Resources means Tools (device or resources)

2. Services means Technique (skill or method)
Network Resources (IT Infrastructure): The network resources are those resources or
devices or media that connect the two or more e-business computer.
Services: To accessing the computer applications between two communicational entity we

provide some feature like user identification, authentication and authorization services to
secure data.
“Middleware assists an application to interact or communicate with other applications,

networks, hardware, and/or operating systems. This software assists programmers by
reducing complexity during connections, needed in a distributed system. It provides tools
for improving quality of service (QoS), security, message passing, directory services, file
services, etc. that can be invisible to the user.” This definition describes most of the
middleware products available today.
TAXONOMY (CLASSIFICATION) OF MIDDLEWARE

Major Category of Middleware
1. Integration type
Integration type includes those middleware that have a specific way of being integrated
into its heterogeneous system environment. Each of these middleware has different
communication protocols or ways of operating between the other software.
2. Application type
Application type classification includes middleware that fit into specific types of
application functions. These middleware (Data Access, Web-based, Real- Time, Desktop,
and Specialty) works specifically with an application.
1. Integration type middleware
Integration type includes those middleware that have a specific way of being integrated
into its heterogeneous system environment. Each of these middleware has different
communication protocols or ways of operating between the other software.
1. Procedure Oriented Middleware (POM)

2. Object Oriented Middleware (OOM)
3. Message Oriented Middleware (MOM)
4. Component Based or Reflective Middleware
5. Agents
Procedure Oriented Middleware: In Procedure-oriented Middleware uses a synchronous

communication (like a telephone). In POM it request the service, Response the services,
Connect remote service, check error, handle error and manage multiple type of data and
heterogeneous services to integrate service at middleware
Object Oriented Middleware: In Object-oriented Middleware (OOM), it supports

distributed object requests. The communication between objects (client object and
server object) can be synchronous by adopting synchronous and asynchronous threading
policies.
Message Oriented Middleware (MOM) : In MOM, the middleware category can be

subdivided into two types – Message Passing/Queuing and Message Publish/Subscribe.
The application sends out a message to client and server picks the requests in some
predetermined order. The MOM server acts as a router to the message.
Component Based or Reflective Middleware: In component based middleware, a

program performs a specific function that is designed in such a way to easily operate with
multiple components and multiple applications. This integration middleware used to
configuration of components.
Agents: Agents are considered a middleware that consists of several components like:
1. Entities (objects, threads)
2. Media (communication between one agent and another),
3. Laws (rules on agent’s communication coordination)
An agent is capable of autonomous actions to meet its design objectives. This adaptability
of the agent should be general so that it covers a broad base of strategies, algorithms, load
balancing strategies, resource adaptability etc.
2. Application type
The application classification includes middleware that fit into specific types of
application functions. This middleware (Data Access, Web-based, Real- Time, Desktop,
and Specialty) work specifically with an application.
1. Data Access Middleware (DAM)
2. Desktop Middleware
3. Web-based Middleware
4. Multimedia Middleware
5. Real Time Middleware
6. Specialty Middleware
Data Access Middleware (DAM): In DAM middleware is characterized by the interaction of

the application with local and/or remote databases (legacy, relational and non-relational),
data warehouses, or other data source files.
Desktop Middleware: In The Desktop Middleware can make variations in the presentation
of the data as requested by a user, graphic management, event notification services,
software installation management, encryption services, and access control.
Web-based Middleware: In Web-based middleware assists the user with browsing, uses
interfaces. It provides authentication service for a large number of applications, network
protocols and hardware platforms. The middleware tightly bound to the net are called
application servers because they improve the “performance, availability, scalability,

security, information retrieval, and support of collaborative administration and usage.”
Middleware may connect directly to the application (circumventing HTTP) when this gains
better communication between the server and client. Some core services provided by
web-based middleware include directory services, e-mail, billing, large-scale supply
management, remote data access (to include downloads, program access, and browsing),
and remote applications.
One of the web’s main uses is e-Commerce, which pertains to the communication between
two or more businesses (or patrons and businesses) performed over the web. This
middleware controls access to customer profile information, allows the operation of
business functions such as purchasing and selling items, and assists in the trade of
financial information between applications. This business middleware can provide a
modular platform to build the next generation of web applications. The need for security,
QoS, cost-effective and speedy transactions etc.
The strengths of e-Commerce middleware include enabling the fast integration of various
computing systems into a web-based business solution, communication
between businesses easier, cost- effective, and more secure, and allowing
customer service representatives to access data from multiple customer information
systems .
Mobile or Wireless middleware is the other main sub-division of this web middleware. It
integrates distributed applications and servers without permanently
connecting (through wires) to the web. It provides mobile users secure, wireless access to
e-mail, calendars, contact information, task lists, etc.
Some key issues of the mobilecomputing environment include bandwidth,

reliability, delay, latency, error rate, user interface, processing power, interoperability, and
cost. The bandwidth and error rates increase exponentially in a wireless environment. The
mobile system has other problems as well that include battery power fluctuations, network
drops, moving out of signal range, location awareness, and the cost of communication.
When the signal is transferred from one signal source to another, additional concerns arise
like authentication and checking for lost packets.
Multimedia Middleware: In Multimedia middleware include speech, images (pictures,

GPS outputs, etc.), natural language processors, translators, music, and video. The data
need to be collected, integrated, and then delivered to the user. Multimedia systems can
integrate a mixture of logical and physical devices. Physical devices may include video
editors, cameras, speakers, and processing devices (data encoder / decoders or media
synthesizers). One important time-sensitive multimedia middleware assists in the
distributed video-on-demand services. These services require a process to open new
connections, ensure payment for services to the provider, and most importantly, ensure
the quality of service (QoS) delivered to the custome.
Real Time Middleware : Real-time is characterized by the right data being provided on
time otherwise it is no longer the correct data . The real-time middleware supports time-
sensitive request and scheduling policies. It does this with services that improve the
effectiveness of the user applications. Real-time middleware can be divided into the
different applications using them (real-time database application, sensor processing,

and information passing).
Specialty Middleware: In specialty middleware we use some specific category like

Internet2.edu website. These include Multi-Campus System and Medical middleware etc,
Q: Explain E-Commerce portal?
A Web portal is a linked web pages used to transforming and sharing of Information and
services. A Portal presents the information from diverse source in a unified (combined)
way. Hence portals are like doorways on the Internet. They open to us information from a
wide variety of sources and even from other internet users. They also offer a host of
services at a single place
Apart from the search engine feature, web portal offer services like email, news, stock
price, information and entertainment etc. The General Web portals are Yahoo, Rediff,
Indiatimes, google etc.
E-Business and E-Commerce Web Portals
A standard corporate e-business Web portal used for much of a company's online business
presence can cover internal business systems like
CRM (Customer Relation Management) : It is a methodologies, software and Internet

capability that help an Corporate / Enterprises to manage customer relationships in an
organized way. For example, an enterprise might build a database for their customers that
described relationships in sufficient detail so that management, salespeople, people
providing service etc.
ERP (Enterprise resource planning software) : Building a single software program that
serves the needs of people in finance as well as it does the people in human resources and
in the warehouse. Each of those departments typically has its own computer system
optimized for the particular ways that the department does its work. But ERP combines
them all together into a single, integrated software program that runs off a single database
so that the various departments can more easily share information and communicate with
each other.
E-Commerce type Web portals
E-commerce or Electronic commerce has become a very popular form of transaction in

today's world. Now buyers want to purchase goods and services online rather than visiting
the shops and making selections. The biggest advantage enjoyed by E-commerce is its
24*7 connectivity which is not present in normal transactional selling. Bestindiansites.com
enlists top five Indian websites dealing with E-commerce
www.cyberwebglobal.com :The biggest offerings of this site are its instructions regarding
the development of an ideal e-commerce website. It is also into the business of developing
e-commerce portals for other business houses.
khoj.com : Khoj.com is a very popular Indian web directory. khoj.com is sure to serve your
purpose.
Sifycorp.com Sify is one of the most renowned end to end e-solutions providing company in
India.
shopping.rediff.com : It is the e-commerce portal of rediff.com which is known for its unique
offerings and cheapest of prices. The products which are on offer here are of several
categories like apparels, books , cars & bikes, electronic products, gift products, home
appliances and many more. This e-commerce portal also has a separate section called
“best discounts” where only those items are displayed upon which more than normal
discount have been allotted. Here you can also find a list of the popular brands, whose
products are on offer in this e-commerce portal.
futurebazaar.com :Futurebazaar.com is indeed one of the largest Indian e-commerce

websites partnered by Big Bazaar, a leading departmental stores of India. Here you can
find a wide variety of shopping items like apparel, books, cameras, consumer durables,
kitchen appliances, laptops, mobile phones and many more. On some selected products,
this e-commerce portal provides up to 50% discount.
Homeshop18.com is a one of the lagest e-commerce web portal as leading departmental

store, where from you can purchase variety of items.
UNIT -2
What is E-Business?
E-Business (e-business) or electronic business refers to commercial activities performed

over computers and related technologies mainly through networks such as intranets,
extranets and the Internet, improve, and extend business operations. E-business and
ecommerce are often viewed to be one and the same, this is not true because ecommerce
is simply a part ebusiness, more specifically, ecommerce is a trading aspect of ebusiness.
E-business and Intranets
An intranet is network of computers that belong to an organization. Companies use

intranets to efficiently share information such as work-related documents and to facilitate
collaborative efforts amongst its employees. It's a private network, thus only authorized
users have access.
E-business and Extranets
An extranet is essentially an intranet except it allows authorized people outside the

company access to certain areas of the system. Extranets streamline business processes
with suppliers, vendors, and business partners.
E-business and the Internet
The Internet is the global network of interconnected computer networks. From work-at-
home shops to big corporations, the Internet provides new business opportunities to those
who embrace (hold) it.
E-business is a small fish in the pond that are especially embedded with vast amount of
affordable ecommerce software and ecommerce hosting solutions to help them reach far
beyond their local market.
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.
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.
Q : What is Computer Network also explain with its type of Network?
One way to categorize the different types of computer network designs is by their scope or
scale. For historical reasons, the networking industry refers to nearly every type of design
as some kind of area network. Common examples of area network types are:
LAN - Local Area Network

WLAN - Wireless Local Area Network
WAN - Wide Area Network
MAN - Metropolitan Area Network
SAN - Storage Area Network, System Area Network, Server Area Network, or sometimes
Small Area Network
LAN - Local Area Network
A LAN connects network devices over a relatively short distance. A networked office
building, school, or home usually contains a single LAN, though sometimes one building
will contain a few small LANs (perhaps one per room), and occasionally a LAN will span a
group of nearby buildings. In TCP/IP networking, a LAN is often but not always
implemented as a single IP subnet.
In addition to operating in a limited space, LANs are also typically owned, controlled, and
managed by a single person or organization. They also tend to use certain connectivity
technologies, primarily Ethernet and Token Ring.
WAN - Wide Area Network
As the term implies, a WAN spans a large physical distance. The Internet is the largest
WAN, spanning the Earth. A WAN is a geographically-dispersed collection of LANs. A
network device called a router connects LANs to a WAN. In IP networking, the router
maintains both a LAN address and a WAN address.
A WAN differs from a LAN in several important ways. Most WANs (like the Internet) are not
owned by any one organization but rather exist under collective or distributed ownership
and management. WANs tend to use technology like ATM, Frame Relay and X.25 for
connectivity over the longer distances.
Q: Who are the Internet Service Providers also define the Intranet?
A: ISP is who provide the Internet services to its local user. It works in Server / Client
architecture. It mean on who provide the service is called server and one who access the
services are called Client.
In India, Internet came in the existence in 1995. The company named VSNL (Videsh
Sanchar Nagam Limited) started a service (GIAS) Gateway Internet Access Services for
the Local users in India.
Today there are major ISP in India are BSNL, Satyam, Sify, Reliance,Airtel etc.
The difference between Internet and Intranet are
Internet: It is a network of networks which is available to common user to work and share
the information over the world. Internet is a vast global system which consists of men,
money and material information. Internet is a cyber space where every kind of information
can be accessed by its user. It provides the Entertainments, E-mail, E-commerce, online
shopping, research advertisement and news of political, economical and technical over the
globe to public as well as corporate.
Instead of Internet the Intranet is
Intranet is a private network which is used by a Private / Public organization by taking the
rights from Internet. It works just like a firewall in the network. The main aim is to filter and
secure the valuable / secrete information from the common Internet user. It is the cheapest
solution for the Private Company to connection its Branch office or the company’s sales
man in the Global area over the world. The branch can access its company server by using
Internet services and Protocol like PPTP (Point to Point Tunneling Protocol) .
INTRANET
Internet
Company –A
Company –A
Branch Office
EXTRANET : Extranet is just like an Intranet, but the major difference between Intranet
and Extranet is Intranet establish between Company and its Branch or employees but
Extranet establish the Network connection between two or more corporate (companies)
and intercommunication by using internet & ISP (Internet Service Provider). It is also a
private network established with the help of Internet.
Q Define Internet?
It is group of networked computer which is used to provide reliable information to different

castes, colors, creeds and community over the world. It works in Server / client
architecture. It is a loosely configured global wide-area network includes more than 31,000
different networks in over 100 different countries. Millions of people visit and contribute to
the Internet, through e-mail and the World Wide Web. Began as a Department of Defense
project in USA.
For detailed information about the history of the Internet:
In the 1950s the U.S. Department of Defense became concerned that a nuclear attack
could disable its computing (and thus planning and coordinating) capabilities. By 1969 the
Advanced Research Projects Agency Network (ARPANet) had been constructed.
The first computers to be connected were ones at the University of California at Los
Angeles, SRI International, the University of California at Santa Barbara, and the University
of Utah.
There are three main organization which are suppose to guide and coordinate the working
of Internet
4. IETF (Internet Engineers Task Force: develop & maintain protocols.

5. IRTF ( Internet Research Task Force : search new for Internet
6. IAB (Internet Architecture Board : responsible for major changes in Internet
Early on researchers began to find new uses for the Internet, beyond its original purpose of
controlling weapons systems. The new applications included the following:
• Electronic mail
• File transfer protocol
• Telnet
• User’s News Network (Usenet)
• In 1972 a researcher wrote a program that could send and receive messages
over the Internet. E-mail was quickly adopted by Internet users.
• File transfer protocol (FTP) allowed researchers using the Internet to transfer
files easily across great distances.
• Telnet allows users of the Internet to log into their computer accounts from
remote sites.
• All three of these applications are still widely used. We will discuss them
again later.
Q: Define WWW (WORLD WIDE WEB)

WWW : It is global hypertext system which is use by internet to navigate valuable
information around the world to and make single logical system that make internet easy to
use. It was developed in 1994 at European Laboratory, a research Institute in Switzerland.
The WWW works upon the http and ftp protocol to provide easy to use web document and
web browser to navigate web application. Most of the web document creating in HTML by
incorporating hyperlink, hypermedia.
W3C stands for the World Wide Web Consortium (association)

W3C was created in October 1994
W3C was created by Tim Berners-Lee at European Lab at Switzerland
W3C was created by the Inventor of the Web
W3C is organized as a Member Organization (like IETF)
W3C is working to standardize the Web
W3C creates and maintains WWW Standards
W3C Standards are called W3C Recommendations
Three key component of WWW: URL, HTTP and HTML
URL Universal resources locator like http://microsoft.com This URL mean this web site is
made in HTML and HTTP protocol used to display web page in the web browser.
Basic feature of WWW: Information System

Graphical Navigation
Interactive platform
The World Wide Web Consortium (association) (W3C) develops technologies,

specifications, guidelines, software, and tools to lead the Web to its full potential. W3C is a
forum for information, commerce, communication, and collective understanding. On this
page, you'll find Information, news, technologies.
W3C is working to make the Web accessible to all users (despite differences in culture,
education, ability, resources, and physical limitations) W3C also coordinates its work with
many other standards organizations such as the Internet Engineering Task Force, the
Wireless Application Protocols (WAP) Forum and the Unicode Consortium.
Because the Web is so important (both in scope and in investment) that no single
organization should have control over its future, W3C functions as a member organization.
Some well known members of WWW are:
1. IBM 2. Microsoft 3. America Online

4. Apple 5. Adobe 6 Macromedia
7. Sun Microsystems
Q: Role of CRM (Customer Relation Management) in Indian Bank Industry?

Globalization and technology improvements have exposed companies to a situation with
hard competition. In this new era companies are focusing on managing customer
relationships in order to efficiently and maximize the revenues.
Today marketing is not just developing, delivering and selling, it is moving towards
developing and maintaining long term relationships with customers. CRM (Customer
Relationship marketing) is becoming important in financial services. Managers really need
to look at areas where opportunities lies and the ability to move money around with a click
of a mouse are making it easier for customers to leave one bank for another. In this
situation CRM (Customer Relationship Management) is an opportunity that banks can avail
to rise above minor advantages by developing actual relationships with their customers.
Definition of CRM (customer relationship management)
CRM as defined by Kotler, is the process of utilizing detailed information about

individual customers & carefully managing all the customers’ with the aim of maximizing
customer loyalty. The final objective of the CRM process is to create a powerful new tool for
customer retention, customer value, customer achievements & profitability.
CRM Management:
1. Ensuring all efforts should be used for marketing, sales and services.
2. Combine marketing, sales and services activities to achieve common goal.
3. Update knowledge of customer needs continuously
4. Apply customer knowledge, to learning from their success and failure
5. Develop ability to retain loyal and profitable customer.
6. Acquire right customer based on characteristics
CRM TECHNOLOGY:
The bank is using following technology software to interact with its customers. The bank
views CRM technology as customer-centric process and it can help us to automate the
whole processes otherwise it is impossible to handle all the information manually
1. Call Center Management

2. Contact management
3. Data warehousing,
. Knowledge management
5. Sale & Marketing automation
Q: Define E-Shopping and E-Purchasing (E-Buying) also explain the advantages

of Online Shopping?
In Simple way we can define E-Shopping is a matter of wants , In shopping we have

no prior idea to what to shop, some time we shop unwanted things from the market in
this segment a proverb prove it “ If u buy unwanted things today, u will sell your
previous thing tomorrow.”
E-Buying or E-Purchasing defines as Needs that is pre defined and we buy it as per
our needs.
Reasons of online shopping are the best.
1) Convenience: The convenience of this method of shopping is what I like best about it. Where else
can you do shopping even a midnight wearing your night suit? You do not have to wait in a line or wait
till the shop assistant is ready to help you with your purchases. You can do your shopping in minutes
even if you are busy apart from saving time and avoiding crowds. Online shops give us the opportunity
to shop 24 x 7 and also reward us with a ‘no pollution’ shopping. There is no better place to buy
information products like e-books. Immediately after the payment is made one can download the
information. And downloadable items purchased online eliminate the need for any kind of material goods
at all.
2) Compare Prices and Get Better Prices: Another thing which fascinates me is the cheap deals and
better prices I get from online stores because products come to you direct from the manufacturer or
seller without middlemen involved. Many online shops offer discount coupons and rebates. Apart from
this, the Online Store is only required to collect sales tax if they have a physical location in our state
even if we buy from a store across the world.
3) Choose Variety of products: The choices you can get for products are amazing. One can get
several brands and products from different sellers at one place. You can get in on the latest international
trends without spending money on airfare. When you shop online, you can shop from retailers in other
parts of the country or even the world without being limited by geographic area. These stores offer a far
greater selection of colors and sizes than you will find locally.
5) Less overhead Expenses during shopping: Many times when we opt for conventional shopping we
tend to spend a lot more than the required shopping expenses on things like eating out, traveling,
impulsive shopping etc.
7) Avoid Crowds: If you are like me, you would like to avoid the crowds when you do the shopping.
Especially during Festivals and Special events the crowds can really give a head ache. Crowds force us
to do a hurried shopping most of the time. For me grumpy or irritating people and those who smell bad
are a huge turn off. Crowds also create a problem when it comes to finding a parking place nearby
where you want to shop and going back to your vehicle later loaded with shopping bags.
9) Buying Old or unused Stuff at low prices: Online Shops make it possible for us to buy old or
unused stuff at rock bottom prices. If we want to buy antiques there is no better options than online
stores.
10) Tactful (Careful) Purchases: Some things are better done in privacy. Online shops are also best
for careful purchases like thing that society does not allow to purchase. Online Shops enable us to
purchase under garments without the embarrassment that there are several people watching me and my
choices.
Q: E-Commerce Models for middle Level Organization.

Creating an e-commerce solution mainly involves creating and deploying an e-
commerce site. The first step in the development of an e-commerce site is to identify
the e-commerce model. Depending on the parties involved in the transaction, e-
commerce can be classified into 4 models. These are:
• Business – to – Business (B2B) model

• Business – to – Consumer (B2C) model
• Consumer – to- Consumer (C2C) model
• Consumer – to – Business (C2B) model
Let us look at each of them in detail.
Business-to-Business (B2B) Model

The B2B model involves electronic transactions for ordering, purchasing, as well
as other administrative tasks between houses. It includes trading goods, such as
business subscriptions, professional services, manufacturing, and wholesale dealings.
Sometimes in the B2B model, business may exist between virtual companies, neither of
which may have any physical existence. In such cases, business is conducted only
through the Internet.
Let us look at the same example of www.amazon.com. As you know,
www.amazon.com is an online bookstore that sells books form various publishers
including Wrox, O’Reilly, Premier Press, and so on. In this case, the publishers have
the option of either developing their own site or displaying their books on the Amazon
site (www.amazon.com), or both. The publishers mainly choose to display their books
on www.amazon.com at it gives them a larger audience. Now, to do this, the publishers
need to transact with Amazon, involving business houses on both the ends, is the B2B
model.
Consider a hypothetical example. ABC company sells automobile parts and XYZ
company assembles these part and then sells the automobile to customers. XYZ
company comes across the Web site of ABC and finds it suitable. XYZ therefore,
requests for more information about ABC and finally, decides to purchase automobile
parts automobile from ABC. To do this, XYZ places an order on the Web site of ABC.
After ABC receives the order details, it validates the information. As soon as the order
is confirmed, the payment procedures are settled. Finally, ABC sends an
acknowledgement of payment to XYZ and delivers the goods as per the shipment details
decided between the two organizations.
The advantages of the B2B model are:

• It can efficiently maintain the movement of the supply chain and the manufacturing
and procuring processes.
• It can automate corporate processes to deliver the right products and services
quickly and cost-effectively.
The B2B model is predicted to become the largest value sector of the industry within a
few years. This is said to be the fastest growing sector of e-commerce.
Business-to-Consumer (B2C) Model
The B2C model involves transactions between business organizations and consumers.
It applies to any business organization that sells its products or services to consumers
over the Internet. These sites display product information in an online catalog and
store it in a database. The B2C model also includes services online banking, travel
services, and health information.
Consider a hypothetical example in which a transaction is conducted between a business

organization and a consumer. A business house, LMN Department Store, displays and
sells a range of products on their Web site, www.lmn.com. The details information of all
their products is contained in the huge catalogs maintained by LMN Department Stores.
Now, a consumer, William Ward, wants to buy a gift for his wife. He therefore, logs on to
the site of LMN Department Stores and selects a gift from the catalog. He also gets
the detailed information about the gift such as, the price, availability, discounts, and so
on from their catalog. Finally, when he decides to buy the gift, he places an order for
the gift on their Web site. To place an order, he needs to specify his personal and
credit card information on www.lmn.com. This information is then validated by LMN
Department Store and stored in their database. On verification of the information the
order is processed. Therefore, as you can see, the B2C model involves transactions
between a consumer an done or more business organizations.
The example of the www.amazon.com site also involves the B2C model in which the
consumer searches for a book on their site and places an order, if required. This implies
that a complete business solution might be an integration solution of more than one
business model. For example, www.amazon.com includes the B2B model in which the
publishers transact with Amazon and the B2C model in which an individual consumer
transact with the business organization.
The B2C model of e-commerce is more prone to the security threats because
individual consumers provide their credit card and personal information n the
site of a business organization. In addition, the consumer might doubt that his
information is secured and used effectively by the business organization. This is the
main reason why the B2C model is not very widely accepted. Therefore, it becomes very
essential for the business organizations to provide robust security mechanisms that can
guarantee a consumer for securing his information.
Consumer-to-Consumer (C2C) Model
The C2C model involves transaction between consumers. Here, a consumer sells
directly to another consumer. eBay and www.bazee.com are common examples of
online auction Web sites that provide a consumer to advertise and sell their
products online to another consumer. However, it is essential that both the seller and
the buyer must register with the auction site. While the seller needs to pay a fixed fee to
the online auction house to sell their products, the buyer can bid without paying any fee.
The site brings the buyer and seller together to conduct deals.
Let us now look at the previous figure with respect to eBay. When a customer plans to
sell his products to other customers on the Web site of eBay, he first needs to interact
with an eBay site, which in this case acts as a facilitator of the overall transaction.
Then, the seller can host his product on www.ebay.com, which in turn charges him for
this. Any buyer can now browse the site of eBay to search for the product he
interested in. If the buyer comes across such a product, he places an order for the
same on the Web site of eBay. eBay now purchase the product from the seller and
then, sells it to the buyer. In this way, though the transaction is between two customers,
an organization acts as an interface between the two organizations.
Consumer-to-Business (C2B) Model
The C2B model involves a transaction that is conducted between a consumer and a
business organization. It is similar to the B2C model, however, the difference is
that in this case the consumer is the seller and the business organization is the buyer.
In this kind of a transaction, the consumers decide the price of a particular product rather
than the supplier. This category includes individuals who sell products and services to
organizations. For example, www.monster.com is a Web site on which a consumer can
post his bio-data for the services he can offer. Any business organization that is
interested in deploying the services of the consumer can contact him and then employ
him, if suitable.
Let us look at another example of the C2B model.
William Ward needs to buy an airline ticket for his journey form New York to New Jersey.
William needs to travel immediately. Therefore, he searches a Web site for a ticket. The
Web site offers bidding facility to people who want to buy tickets immediately. On the Web
site, William quotes the highest price and gets the ticket.
In addition to the models discussed so far, five new models are being worked on that
involves transactions between the government and other entities, such as
consumer, business organizations, and other governments. All these transactions that
involve government as one entity are called e-governance. The various models in the e-
governance scenario are:
• Government-to-Government (G2G) model: This model involves transactions between

2 governments. For example, if the American government wants to by oil from the Arabian
government, the transaction involved are categorized in the G2G model.
• Government-to-Consumer (G2C) model: In this model, the government transacts with

an individual consumer. For example, a government can enforce laws pertaining to tax
payments on individual consumers over the Internet by using the G2C model.
• Consumer-to-Government (C2G) model: In this model, an individual consumer

interacts with the government. For example, a consumer can pay his income tax or house
tax online. The transactions involved in this case are C2G transactions.
• Government-to-Business (G2B) model: This model involves transactions between a

government and business organizations. For example, the government plans to build a fly
over. For this, the government requests for tenders from various contractors. Government
can do this over the Internet by using the G2B model.
• Business-to-Government (B2G) model: In this model, the business houses transact

with the government over the Internet. For example, similar to an individual consumer,
business houses can also pay their taxes on the Internet.
Q: APPLICATION OF E-COMMERCE IN BUSINESS OF WHOLE SALE,

RETAIL SALE, SERVICE SECTOR AND MANUFACTURING
The ecommerce website is the leading sales medium for many wholesale distributors. Your
wholesale customers will enjoy a rewarding online experience that drives loyalty and repeat
business. And your business will benefit with faultless ecommerce integration with front- and back-
office functions—accounting, inventory, CRM and execution of process etc.
Purpose of whole sale / retail sale distribution in Business

1. More profit
2. Optimize distribution process
3. Retain existing customer and add new more.
4. More efficiency in Business transaction and Results
Benefits
 Improve operational efficiencies through ecommerce integration with accounting, ,

inventory, execution and CRM.
 Drive repeat business with "homeshop18.com web-site"
 Give customers and employees real-time visibility into orders.
 Increase sales and reduce rejections with simplified navigation and checkouts.
 Empower (allow) and safeguard customers with self-service tools and password-protection
 Leverage (influence) multilingual, multi-currency support for global business
 Observe and improve performance with analytics and real-time console.
Key Features
 Website Hosting and Content Management

o Construct flexible a new website or improve your current site
o Easily update website content with simple point-and-click functionality
o Manage multiple websites from a single integrated account
o Expand global reach with support for multiple languages and currencies.
 Order Management and completion
o Transparency of order-to-shipment process in real-time visibility on each step
o Faultless link online orders to accounting, inventory, CRM, completion and other
systems
o Flexibility in payment mode such as e-banking, credit cards
o Provide online path for orders and status for customers and Corporate.
 Web store and Shopping Cart
o Drive business with a natural, full-featured web-store
o Reduce rejections with simplified navigation.
o Integrate your web store with your call center.
 Customer Self-Service and Security
o Build customer satisfaction with fast, easy self-service tools available 24x7
o No extra cost and main emphasis on problem solution
o Protect customer and company security with password-protection.
 Intelligent Stock
o Real time stock and demand management to maintain business cycle
o Generate work orders for requirements and arrangement of stock.
 Retail Lifecycle Management
o Retail lifecycle management mean to sell to end-consumers
o Expand your reach into end-consumer direct sales markets.
 Search Engine Optimization (SEO)
o Improve your search engine rankings with built-in SEO tools
o Submit SEO tags for all pages with content management system
o Generate web-store traffic with search engine friendly catalogs.
 Ecommerce Analysis
o Gain real-time visibility into website and customer shopping activity
o Create customer segments and execute targeted marketing
Software used to develop E-Business Application

1. ORACLE
2. Net Suite
3. Lawson
4. MicroSoft
5. Sage
Application used in Manufacturing, Whole Sale, retail and in services.
ERP applications are the example of organization business application of manufacturing, accounting,
CRM (Customer Relation Management), HRM,(Human Resources Management) SCM (Supply
Chain Management), Health care, construction, retail services, Inventory, etc.
ERP Application Software is : Sage

SAP
Corona
IFS
E-commerce portal in whole sale and retail sale
Cyberwebglobal.com
Shopping.rediff.com
Futurebazer.com
Sifycorp.com
Homeshop18.com

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E-Commerce Notes (BBA 6th sem) FEB_2012 Mukesh Gupta 1

Applications in e-commerce – e-commerce applications in manufacturing, wholesale, retail and

Q: Explain the meaning nature and concepts of E-commerce?

1. Benefits to Society, Organization as well as customer

2. No Geographical barrier reach to narrow market too

3. E-commerce help organization to reduce product cost

5. Better customer communication

6. Improved customer services

7. Increase operating and trading flexibility

8. Cost of Transaction is same everywhere for the consumer/buyer

9. E-commerce technologies enable a business to easily reach across

11. e-commerce is made possible through hardware (Internet) and

12. Universal standards can greatly influence market entry costs

13. Consumer/user can interact with the Internet, more option to

14. E-commerce has more opportunities for personalization then going to a

Q: E-Commerce advantages and disadvantages and the reasons for

Commerce is a negotiated (bargain) exchange of valuable objects or services between at

Advantages and Disadvantages of Electronic Commerce

Like any conventional business, E-commerce (Electronic Commerce) is also characterized

The greatest and the most important advantage of e-commerce, is that

1. It enables a business concern or individual to reach the global market

4. E-commerce empowers (authorized / allow) everyone to execute business

10. It reduces the time period involved with business process.

11. Electronic commerce reduces the burden of infrastructure to conduct businesses.

Disadvantages of Electronic Commerce

3. Some people simply refuse to trust the authenticity of completely impersonal

6. It is not suitable for fresh commodities like food items.

Q Explain is EDI (Electronic Data Interchange) with all aspects?

EDI Structure The basic EDI structure is given below.

 Each partner has their own internal software systems.

 Special EDI adapters have to be implemented which will be able

 The particulars of the message syntax and interaction process

1. Value Added Networks (VAN) are the go-between in EDI communications.

Financial and monetary. Systems like SWIFT

Impact of EDI (advantages) on organizations

1. Shorter lead times, more flexibility and less inventory

3. About million of stock reduction in the inbound inventory

Drawback of EDI (Disadvantages)

1. EDI adapter software is too expensive for most organizations.

Q:-Explain the Category of E-commerce?

B2B (Business-to-Business) : Companies doing business with each other such as

B2C (Business-to-Consumer) :B2C apply to online transaction between organization

Challenges for business

Q What are the Nature and Dynamic of Internet?

For detailed information about the history of the Internet:

Advancement in new generation.

Services and Applications of Internet

WWW World Wide Web Services

Q: What do you mean by Brick and Click Business?

Bricks-and-clicks is a business model by which a company integrates both offline (bricks)

Advantages of the Bricks and Clicks model

2. Existing supplier networks :- Existing firms have established relationships of trust

3. Existing distribution channels :- As with supplier networks, existing distribution

Q: Define perspectives, requirements, planning, designing and

Some fundamental issues of a business online are:

1. How we can remove the gap of conventional payment and e-payment

The main objectives of an E-business model are:

Online server for Merchant

Phases involve in E-Business