CHAPTER-3

EMAIL, INTERNET AND ITS

APPLICATIONS
BY SHAILENDRA.PATHARE
 SYNOPSIS
3.1 Introduction to email
3.2 Use of Outlook
3.3 Internet
3,4 DNS Basic
3.5 Emergence of E-commerce and M-commerce
l Review Questions
 3.1 INTRODUCTION TO E-MAIL
ELECTRONIC MAIL (EMAIL) IS A METHOD OF EXCHANGING MESSAGES BETWEEN PEOPLE
USING ELECTRONICS. EMAIL FIRST ENTERED SUBSTANTIAL USE IN THE 1960S AND BY THE
MID-1970S HAD TAKEN THE FORM NOW RECOGNIZED AS EMAIL. EMAIL OPERATES ACROSS
COMPUTER NETWORKS, WHICH TODAY IS PRIMARILY THE INTERNET.

WRITING PROFESSIONAL EMAIL

SUBJECT LINE: THE SUBJECT LINE SHOULD CONCISELY CONVEY YOUR PURPOSE FOR
WRITING. YOUR SUBJECT LINE CAN BE AS SIMPLE AS "THANK YOU" OR "REQUEST FOR
RECOMMENDATION"
GREETING: EVEN IF YOU ARE WRITING A VERY SHORT EMAIL, INCLUDE A GREETING. IF YOU
KNOW THE NAME OF THE PERSON, INCLUDE IT. UNLESS YOU ARE ON A FIRST-NAME BASIS
WITH THE PERSON, CALL THEM BY THEIR TITLE.
LENGTH: KEEP YOUR EMAIL AS CONCISE AS POSSIBLE. PEOPLE TEND TO SKIM LONG
EMAILS, SO ONLY INCLUDE ESSENTIAL INFORMATION.
 3.1 INTRODUCTION TO E-MAIL
 FONT STYLE: AVOID ORNATE, PLAYFUL, OR COLORED FONTS; THESE SIMPLY DISTRACT
THE RECIPIENT FROM YOUR ACTUAL MESSAGE. AVOID OVERUSING BOLD AND ITALICS AS
WELL, WHICH MAKE AN EMAIL LOOK CLUTTERED. DO NOT WRITE IN ALL CAPITAL
LETTERS EITHER; THIS COMES ACROSS AS ANGRY OR OVEREXCITED IN AN EMAIL.
 EMOTICONS: DO NOT INCLUDE EMOTICONS IN A PROFESSIONAL EMAIL; SAVE THESE FOR
PERSONAL CORRESPONDENCE.
 SPELLING AND GRAMMAR: JUST BECAUSE YOU ARE WRITING AN EMAIL DOES NOT MEAN
YOU SHOULD BE SLOPPY ABOUT SPELLING AND GRAMMAR. EDIT YOUR EMAIL
CAREFULLY BEFORE SENDING IT. AN ERROR-FREE MESSAGE TELLS THE RECIPIENT THAT
YOUR EMAIL SHOULD BE TAKEN SERIOUSLY.
 CLOSING: SIGN OFF WITH A BRIEF "THANK YOU," "BEST," OR OTHER SIMPLE SEND-OFF,
AND THEN YOUR NAME. MOST EMAIL ACCOUNTS LET YOU EMBED A SIGNATURE WITH
YOUR NAME, TITLE, AND CONTACT INFORMATION INTO EVERY EMAIL. THIS IS A
TERRIFIC WAY TO MAKE EACH CORRESPONDENCE MORE PROFESSIONAL.
 3.1 INTRODUCTION TO E-MAIL
CREATE DIGITALLY SIGNED DOCUMENTS
1. CLICK IN THE DESIRED SIGNATURE FIELD. ...
2. CHOOSE A DIGITAL ID.
3. FOR PKCS #12 IDS, ENTER THE PASSWORD AND CLICK LOG IN. ...
4. COMPLETE ANY OF THE DESIRED OPTIONS FIELDS.
5. SELECT AN APPEARANCE FOR YOUR SIGNATURE.
6. CLICK OK. ...
7. ENTER A FILE NAME AND SELECT THE LOCATION FOR THE SIGNED FILE,
8. THEN CLICK SAVE TO SAVE THE SIGNED PDF.
 3.2 USE OF OUTLOOK
CONFIGURE OUTLOOK 2010
1. OPEN OUTLOOK 2010.
2. CLICK FILE-ADD ACCOUNT. SEE FIGURE 1 BELOW.

FIGURE 1: CLICK THE "+ADD ACCOUNT" BUTTON TO BEGIN.

ENTER YOUR FULL EMAIL ADDRESS AND PASSWORD. OUTLOOK SHOULD

AUTOMATICALLY CONFIGURE YOUR ACCOUNT FOR YOU. IF NOT, PROCEED TO THE
NEXT SECTION.
 3.2 USE OF OUTLOOK
MANUALLY CONFIGURE OUTLOOK 2010
1. OPEN OUTLOOK 2010.
2. CLICK FILE- ADD ACCOUNT. SEE FIGURE 1 ABOVE.
3. NEXT, SELECT MANUALLY CONFIGURE SERVER SETTINGS OR ADDITIONAL
SERVER TYPES.
4. THEN CLICK NEXT. SEE FIGURE 2 BELOW.

Figure 2: this will allow you to enter your account information.

 3.2 USE OF OUTLOOK
5. IN THIS SCREEN, CHOOSE INTERNET E-MAIL, THEN CLICK NEXT. FIGURE 3 BELOW
ILLUSTRATES THIS WINDOW.

FIGURE 3: BE SURE TO SELECT "INTERNET E-MAIL" THEN CLICK THE "NEXT" BUTTON
 3.2 USE OF OUTLOOK
6. THIS WINDOW IS WHERE YOU ENTER YOUR EMAIL INFORMATION, SEE FIGURE 4 BELOW.

FIGURE 4: ENTER YOUR EMAIL ACCOUNT INFORMATION IN THIS WINDOW.

 3.2 USE OF OUTLOOK
 ENTER YOUR NAME AS YOU WANT IT TO APPEAR.
 ENTER YOUR FULL EMAIL ADDRESS [email protected] IN THE EMAIL
ADDRESS: FIELD.
 SELECT POP3 OR IMAP. LEARN MORE ABOUT THE DIFFERENCES HERE.
 ENTER MAIL.EXAMPLE.COM IN THE INCOMING MAIL (POP3, IMAP) SERVER: FIELD.
 ENTER MAIL.EXAMPLE.COM IN THE OUTGOING MAIL (SMTP) SERVER: FIELD. TO
AVOID COMMON AUTHENTICATION ISSUES WITH OUTLOOK, WE STRONGLY
ADVISE USING SSL AND PORT 465 FOR SMTP CONNECTIONS.
 ENTER YOUR FULL EMAIL ADDRESS, [email protected], IN THE USER
NAME FIELD.
 ENTER YOUR EMAIL PASSWORD IN THE PASSWORD: FIELD.
 3.2 USE OF OUTLOOK
7. PERFORM THE FOLLOWING STEPS:
 CLICK ON MORE SETTINGS... SEE FIGURE 5 FOR THE LOCATION OF THIS BUTTON.

FIGURE 5: THIS WILL OPEN A NEW WINDOW.

 3.2 USE OF OUTLOOK
 CLICK ON THE OUTGOING SERVER TAB. CHECK MY OUTGOING SERVER (SMTP) REQUIRES AUTHENTICATION.
 MAKE SURE USE SAME SETTING AS MY INCOMING MAIL SERVER IS ALSO CHECKED. CLICK ON OK. SEE FIGURE 6 AS
REFERENCE.

FIGURE 6: BE SURE TO CONFIRM THESE SETTINGS.

8. CLICK THE TEST ACCOUNT SETTINGS BUTTON AND YOU SHOULD SEE ALL ITEMS WITH GREEN CHECK MARKS. CLICK
THE CLOSE BUTTON TO CLOSE THE TEST WINDOW. CLICK OK TO SAVE YOUR SETTINGS.
 3.2 USE
CREATE OUTLOOK PROFILE
OF OUTLOOK
1. CHOOSE START > CONTROL PANEL > MAIL.
OR
 CHOOSE START AND IN THE SEARCH PROGRAMS AND FILES BOX, TYPE
CONTROL PANEL, AND THEN CHOOSE MAIL.
OR
 OPEN THE CONTROL PANEL, AND IN THE SEARCH BOX AT THE TOP OF
WINDOW, TYPE MAIL.
 3.2 USE OF OUTLOOK
2. CHOOSE SHOW PROFILES > ADD.
3. IN THE PROFILE NAME BOX, TYPE A NAME FOR THE PROFILE, AND THEN CHOOSE
OK.

SENDING AND RECEIVING EMAIL THROUGH OUTLOOK

1. LAUNCH OUTLOOK. IF THIS IS THE FIRST TIME YOU HAVE LAUNCHED

OUTLOOK, YOU WILL SEE A BOX OPEN TO SETUP YOUR EMAIL ACCOUNT. IF YOU
HAVE PREVIOUSLY USED OUTLOOK, YOU CAN ACCESS THIS BOX BY GOING TO
THE "TOOLS" MENU AND SELECTING "ACCOUNT SETTINGS". YOU CAN NOW
CREATE YOUR NEW EMAIL ACCOUNT BY CLICKING "NEW"UNDER "EMAIL".
 3.2 USE OF OUTLOOK

2. ENTER IN YOUR NEW EMAIL ACCOUNT INFORMATION:

YOUR NAME: YOUR NAME AS IT WILL APPEAR TO THE RECIPIENT
E-MAIL ADDRESS: YOUR FULL EMAIL ADDRESS IN ALL LOWER CASE (IE [email protected])
PASSWORD: YOUR EMAIL ADDRESS PASSWORD
RETYPE PASSWORD: YOUR EMAIL ADDRESS PASSWORD
THEN CHECK OFF THE BOX THAT SAYS "MANUALLY CONFIGURE SERVER SETTINGS OR ADDITIONAL SERVER TYPES"
 3.2 USE OF OUTLOOK
3. CHOOSE "INTERNET E-MAIL" AND CLICK "NEXT".
 3.2 USE OF OUTLOOK
4. NEXT, YOU WILL ENTER YOUR INTERNET EMAIL SETTINGS:
 USER INFORMATION: ENTER YOUR NAME AND YOUR FULL EMAIL ADDRESS IN
ALL LOWERCASE LETTERS (IE [email protected])
 SERVER INFORMATION: ENTER IN YOUR INCOMING AND OUTGOING MAIL
SERVERS. YOUR INCOMING AND OUTGOING MAIL SERVERS WERE PROVIDED TO
YOU IN AN EMAIL WHEN YOU FIRST SIGNED UP FOR THE SERVICE. HOWEVER, IF
YOU NO LONGER HAVE THESE SETTINGS, PLEASE CONTACT US TO FIND OUT
WHAT INCOMING AND OUTGOING MAIL SERVERS YOU SHOULD BE USING.
 LOGON INFORMATION: ENTER YOUR FULL EMAIL ADDRESS IN ALL LOWERCASE
LETTERS (IE [email protected]) AS YOUR USER NAME AND THE PASSWORD
THAT YOU SPECIFIED WHEN YOU REGISTERED YOUR EMAIL ACCOUNT.
THEN CLICK ON THE "MORE SETTINGS" BUTTON.
 3.2 USE OF OUTLOOK
5. ON THE "OUTGOING MAIL SERVER" TAB, MAKE SURE TO CHECK
OFF "MY OUTGOING MAIL SERVER REQUIRES AUTHENTICATION"
AND CHOOSE THE "USE SAME SETTINGS AS MY INCOMING MAIL
SERVER" OPTION. THEN CLICK "OK" AND HIT "NEXT" TO
COMPLETE YOUR SETUP.
 3.2 USE OF OUTLOOK
BULK EMAIL SOFTWARE
 BULK EMAIL SOFTWARE IS SOFTWARE THAT IS USED TO SEND EMAIL IN LARGE QUANTITIES.
 BULK EMAIL SOFTWARE USUALLY REFERS TO STANDALONE SOFTWARE, WHILE THERE ARE BULK EMAIL
SENDING WEB-BASED SERVICES AS WELL.
 COMPUTER WORMS THAT SPREAD THEMSELVES VIA EMAIL ARE AN EXAMPLE OF BULK EMAIL SOFTWARE,
SOMETIMES REFERRED TO AS A MASS MAILER. SUCH WORMS USUALLY (BUT NOT NECESSARILY) SEND
SPOOFED "FROM" HEADERS.
TYPES OF SOFTWARE
 MOST BULK EMAIL SOFTWARE PROGRAMS ARE HOSTED BY THIRD PARTY COMPANIES WHO SELL ACCESS TO
THEIR SYSTEM. CUSTOMERS PAY PER SEND OR AT A FIXED MONTHLY RATE TO HAVE THEIR OWN USER
ACCOUNT FROM WHICH THEY CAN MANAGE THEIR CONTACTS AND SEND OUT EMAIL CAMPAIGNS.
GENERALLY THE ADVANTAGE OF THIS TYPE OF PROGRAM IS THE RELIABILITY OF THE THIRD PARTY VENDOR
AND THEIR APPLICATION. SOME BULK EMAIL SOFTWARE PROGRAMS ARE SELF-HOSTED. THE CUSTOMER
BUYS A LICENSE OR DEVELOPS THEIR OWN PROGRAM AND THEN HOSTS THE PROGRAM. GENERALLY THE
ADVANTAGE OF THIS TYPE OF PROGRAM IS THE LACK OF ONGOING MONTHLY FEES TO THE
OWNER/DEVELOPER OF THE PROGRAM. THE DISADVANTAGE TO USING THIS OPTION IS THAT DELIVERY RATE
IS REDUCED AS OFTEN USERS USE ONE SERVER TO SEND BULK EMAILS. THERE ARE VARIOUS SETTINGS TO
TWEAK TO AVOID A SERVER BEING LABELED AS SPAM.
 3.3 INTERNET
INTRODUCTION
 INTERNET REFERS TO NETWORK OF NETWORKS. IN THIS NETWORK EACH COMPUTER IS RECOGNIZED BY
A GLOBALLY UNIQUE ADDRESS KNOWN AS IP ADDRESS. A SPECIAL COMPUTER DNS (DOMAIN NAME
SERVER) IS USED TO GIVE NAME TO THE IP ADDRESS SO THAT USER CAN LOCATE A COMPUTER BY A NAME.
 FOR EXAMPLE, A DNS SERVER WILL RESOLVE A NAME HTTP://WWW.TUTORIALSPOINT.COM TO A
PARTICULAR IP ADDRESS TO UNIQUELY IDENTIFY THE COMPUTER ON WHICH THIS WEBSITE IS HOSTED.
CONCEPT OF INTERNET
 INTERNET IS DEFINED AS AN INFORMATION SUPER HIGHWAY, TO ACCESS INFORMATION OVER THE WEB.
HOWEVER, IT CAN BE DEFINED IN MANY WAYS AS FOLLOWS:
 INTERNET IS A WORLD-WIDE GLOBAL SYSTEM OF INTERCONNECTED COMPUTER NETWORKS.
 INTERNET USES THE STANDARD INTERNET PROTOCOL (TCP/IP).
 EVERY COMPUTER IN INTERNET IS IDENTIFIED BY A UNIQUE IP ADDRESS.
 IP ADDRESS IS A UNIQUE SET OF NUMBERS (SUCH AS 110.22.33.114) WHICH IDENTIFIES A COMPUTER
LOCATION.
 3.3 INTERNET
 A SPECIAL COMPUTER DNS (DOMAIN NAME SERVER) IS USED TO GIVE NAME
TO THE IP ADDRESS SO THAT USER CAN LOCATE A COMPUTER BY A NAME.
 FOR EXAMPLE, A DNS SERVER WILL RESOLVE A NAME
HTTP://WWW.TUTORIALSPOINT.COM TO A PARTICULAR IP ADDRESS TO
UNIQUELY IDENTIFY THE COMPUTER ON WHICH THIS WEBSITE IS HOSTED.
 INTERNET IS ACCESSIBLE TO EVERY USER ALL OVER THE WORLD.
 3.3 INTERNET
EVOLUTION
 THE CONCEPT OF INTERNET WAS ORIGINATED IN 1969 AND HAS UNDERGONE SEVERAL
TECHNOLOGICAL & INFRASTRUCTURAL CHANGES AS DISCUSSED BELOW:
 THE ORIGIN OF INTERNET DEVISED FROM THE CONCEPT OF ADVANCED RESEARCH PROJECT
AGENCY NETWORK (ARPANET).
 ARPANET WAS DEVELOPED BY UNITED STATES DEPARTMENT OF DEFENSE.
 BASIC PURPOSE OF ARPANET WAS TO PROVIDE COMMUNICATION AMONG THE VARIOUS BODIES
OF GOVERNMENT.
 INITIALLY, THERE WERE ONLY FOUR NODES, FORMALLY CALLED HOSTS.
 IN 1972, THE ARPANET SPREAD OVER THE GLOBE WITH 23 NODES LOCATED AT DIFFERENT
COUNTRIES AND THUS BECAME KNOWN AS INTERNET.
 BY THE TIME, WITH INVENTION OF NEW TECHNOLOGIES SUCH AS TCP/IP PROTOCOLS, DNS,
WWW, BROWSERS, SCRIPTING LANGUAGES ETC. INTERNET PROVIDED A MEDIUM TO PUBLISH
AND ACCESS INFORMATION OVER THE WEB.
 3.3 INTERNET
ADVANTAGES
INTERNET COVERS ALMOST EVERY ASPECT OF LIFE, ONE CAN THINK OF. HERE,
WE WILL DISCUSS SOME OF THE ADVANTAGES OF INTERNET:
 3.3 INTERNET
INTERNET ALLOWS US TO COMMUNICATE WITH THE PEOPLE
SITTING AT REMOTE LOCATIONS. THERE ARE VARIOUS APPS
AVAILABLE ON THE WED THAT USES INTERNET AS A MEDIUM FOR
COMMUNICATION. ONE CAN FIND VARIOUS SOCIAL NETWORKING
SITES SUCH AS:
– FACEBOOK
– TWITTER
– YAHOO
– GOOGLE+
– FLICKR
– ORKUT
 3.3 INTERNET
 APART FROM COMMUNICATION AND SOURCE OF INFORMATION, INTERNET ALSO SERVES A MEDIUM FOR
ENTERTAINMENT. FOLLOWING ARE THE VARIOUS MODES FOR ENTERTAINMENT OVER INTERNET.
– ONLINE TELEVISION
– ONLINE GAMES
– SONGS
– VIDEOS
– SOCIAL NETWORKING APPS

 INTERNET ALLOWS US TO USE MANY SERVICES LIKE:

– INTERNET BANKING
– MATRIMONIAL SERVICES
– ONLINE SHOPPING
– ONLINE TICKET BOOKING
– ONLINE BILL PAYMENT
– DATA SHARING
– E-MAIL

 INTERNET PROVIDES CONCEPT OF ELECTRONIC COMMERCE, THAT ALLOWS THE BUSINESS DEALS TO BE
CONDUCTED ON ELECTRONIC SYSTEMS
 3.3 INTERNET
DISADVANTAGES
HOWEVER, INTERNET HAS PROVED TO BE A POWERFUL SOURCE OF
INFORMATION IN ALMOST EVERY FIELD, YET THERE EXISTS MANY
DISADVANTAGES DISCUSSED BELOW:
 3.3 INTERNET
 THERE ARE ALWAYS CHANCES TO LOOSE PERSONAL INFORMATION SUCH AS NAME, ADDRESS,
CREDIT CARD NUMBER. THEREFORE, ONE SHOULD BE VERY CAREFUL WHILE SHARING SUCH
INFORMATION. ONE SHOULD USE CREDIT CARDS ONLY THROUGH AUTHENTICATED SITES.
 ANOTHER DISADVANTAGE IS THE SPAMMING.SPAMMING CORRESPONDS TO THE UNWANTED E-
MAILS IN BULK. THESE E-MAILS SERVE NO PURPOSE AND LEAD TO OBSTRUCTION OF ENTIRE
SYSTEM.
 VIRUS CAN EASILY BE SPREAD TO THE COMPUTERS CONNECTED TO INTERNET. SUCH VIRUS
ATTACKS MAY CAUSE YOUR SYSTEM TO CRASH OR YOUR IMPORTANT DATA MAY GET DELETED.
 ALSO A BIGGEST THREAT ON INTERNET IS PORNOGRAPHY. THERE ARE MANY PORNOGRAPHIC
SITES THAT CAN BE FOUND, LETTING YOUR CHILDREN TO USE INTERNET WHICH INDIRECTLY
AFFECTS THE CHILDREN HEALTHY MENTAL LIFE.
 THERE ARE VARIOUS WEBSITES THAT DO NOT PROVIDE THE AUTHENTICATED INFORMATION.
THIS LEADS TO MISCONCEPTION AMONG MANY PEOPLE.
 3.3 INTERNET
INTRANET
INTRANET IS DEFINED AS PRIVATE NETWORK OF COMPUTERS WITHIN AN
ORGANIZATION WITH ITS OWN SERVER AND FIREWALL. MOREOVER WE CAN DEFINE
INTRANET AS:
 INTRANET IS SYSTEM IN WHICH MULTIPLE PCS ARE NETWORKED TO BE CONNECTED
TO EACH OTHER. PCS IN INTRANET ARE NOT AVAILABLE TO THE WORLD OUTSIDE OF
THE INTRANET.
 USUALLY EACH COMPANY OR ORGANIZATION HAS THEIR OWN INTRANET NETWORK
AND MEMBERS/EMPLOYEES OF THAT COMPANY CAN ACCESS THE COMPUTERS IN
THEIR INTRANET.
 EVERY COMPUTER IN INTERNET IS IDENTIFIED BY A UNIQUE IP ADDRESS.
 EACH COMPUTER IN INTRANET IS ALSO IDENTIFIED BY A IP ADDRESS, WHICH IS
UNIQUE AMONG THE COMPUTERS IN THAT INTRANET.
 3.3 INTERNET
BENEFITS
INTRANET IS VERY EFFICIENT AND RELIABLE NETWORK SYSTEM FOR ANY
ORGANIZATION. IT IS BENEFICIAL IN EVERY ASPECT SUCH AS COLLABORATION,
COST-EFFECTIVENESS, SECURITY, PRODUCTIVITY AND MUCH MORE.
 3.3 INTERNET
COMMUNICATION
 INTRANET OFFERS EASY AND CHEAP COMMUNICATION WITHIN AN ORGANIZATION. EMPLOYEES CAN
COMMUNICATE USING CHAT, E-MAIL OR BLOGS.
TIME SAVING
 INFORMATION ON INTRANET IS SHARED IN REAL TIME.

COLLABORATION
 INFORMATION IS DISTRIBUTED AMONG THE EMPLOYEES AS ACCORDING TO REQUIREMENT AND IT
CAN BE ACCESSED BY THE AUTHORIZED USERS, RESULTING IN ENHANCED TEAMWORK.
PLATFORM INDEPENDENCY
 INTRANET CAN CONNECT COMPUTERS AND OTHER DEVICES WITH DIFFERENT ARCHITECTURE.

COST EFFECTIVE
 EMPLOYEES CAN SEE THE DATA AND OTHER DOCUMENTS USING BROWSER RATHER THAN PRINTING
THEM AND DISTRIBUTING DUPLICATE COPIES AMONG THE EMPLOYEES, WHICH CERTAINLY
DECREASES THE COST.
 3.3 INTERNET
WORKFORCE PRODUCTIVITY
 DATA IS AVAILABLE AT EVERY TIME AND CAN BE ACCESSED USING COMPANY WORKSTATION.
THIS HELPS THE EMPLOYEES WORK FASTER.
BUSINESS MANAGEMENT
 IT IS ALSO POSSIBLE TO DEPLOY APPLICATIONS THAT SUPPORT BUSINESS OPERATIONS.
SECURITY
 SINCE INFORMATION SHARED ON INTRANET CAN ONLY BE ACCESSED WITHIN AN
ORGANIZATION, THEREFORE THERE IS ALMOST NO CHANCE OF BEING THEFT.
SPECIFIC USERS
 INTRANET TARGETS ONLY SPECIFIC USERS WITHIN AN ORGANIZATION THEREFORE, ONCE CAN
EXACTLY KNOW WHOM HE IS INTERACTING.
IMMEDIATE UPDATES
 ANY CHANGES MADE TO INFORMATION ARE REFLECTED IMMEDIATELY TO ALL THE USERS.
 3.3 INTERNET
ISSUES
 APART FROM SEVERAL BENEFITS OF INTRANET, THERE ALSO EXIST SOME ISSUES..
THESE ISSUES ARE SHOWN IN THE FOLLOWING DIAGRAM:
 3.3 INTERNET
APPLICATIONS

INTRANET APPLICATIONS ARE SAME AS THAT OF INTERNET

APPLICATIONS. INTRANET APPLICATIONS ARE ALSO ACCESSED
THROUGH A WEB BROWSER. THE ONLY DIFFERENCE IS THAT,
INTRANET APPLICATIONS RESIDE ON LOCAL SERVER WHILE
INTERNET APPLICATIONS RESIDE ON REMOTE SERVER. HERE, WE'VE
DISCUSSED SOME OF THESE APPLICATIONS:
 3.3 INTERNET
DOCUMENT PUBLICATION APPLICATIONS
 DOCUMENT PUBLICATION APPLICATIONS ALLOW PUBLISHING DOCUMENTS SUCH AS
MANUALS, SOFTWARE GUIDE, EMPLOYEE PROFITS ETC WITHOUT USE OF PAPER.
ELECTRONIC RESOURCES APPLICATIONS
 IT OFFERS ELECTRONIC RESOURCES SUCH AS SOFTWARE APPLICATIONS,
TEMPLATES AND TOOLS, TO BE SHARED ACROSS THE NETWORK.
INTERACTIVE COMMUNICATION APPLICATIONS
 LIKE ON INTERNET, WE HAVE E-MAIL AND CHAT LIKE APPLICATIONS FOR INTRANET,
HENCE OFFERING AN INTERACTIVE COMMUNICATION AMONG EMPLOYEES.
SUPPORT FOR INTERNET APPLICATIONS
 INTRANET OFFERS AN ENVIRONMENT TO DEPLOY AND TEST APPLICATIONS BEFORE
PLACING THEM ON INTERNET.
EXTRANET
3.3 INTERNET
EXTRANET REFERS TO NETWORK WITHIN AN ORGANIZATION, USING INTERNET
TO CONNECT TO THE OUTSIDERS IN CONTROLLED MANNER. IT HELPS TO
CONNECT BUSINESSES WITH THEIR CUSTOMERS AND SUPPLIERS AND
THEREFORE ALLOWS WORKING IN A COLLABORATIVE MANNER.
IMPLEMENTATION
3.3 INTERNET
EXTRANET IS IMPLEMENTED AS A VIRTUAL PRIVATE NETWORKS (VPN) BECAUSE IT USES
INTERNET TO CONNECT TO CORPORATE ORGANIZATION AND THERE IS ALWAYS A THREAT TO
INFORMATION SECURITY. VPN OFFERS A SECURE NETWORK IN PUBLIC INFRASTRUCTURE
(INTERNET).

KEY POINTS
THE PACKET IS ENCAPSULATED AT BOUNDARY OF NETWORKS IN IPSEC COMPLAINT ROUTERS.
IT USES AN ENCRYPTION KEY TO ENCAPSULATE PACKETS AND IP ADDRESSES AS WELL
 3.3 INTERNET
THE PACKET IS DECODED ONLY BY THE IPSEC COMPLAINT
ROUTERS OR SERVERS.
THE MESSAGE IS SENT OVER VPN VIA VPN TUNNEL AND THIS
PROCESS IS KNOWN AS TUNNELING.
 VPN USES INTERNET PROTOCOL SECURITY ARCHITECTURE
(IPSEC) PROTOCOL TO PROVIDE SECURE TRANSACTIONS BY
ADDING AN ADDITIONAL SECURITY LAYER TO TCP/IP PROTOCOL.
THIS LAYER IS CREATED BY ENCAPSULATING THE IP PACKET TO A
NEW IP PACKET AS SHOWN IN THE FOLLOWING DIAGRAM:
 3.3 INTERNET
BENEFITS

EXTRANET PROVES TO BE A SUCCESSFUL MODEL FOR ALL KIND

OF BUSINESSES WHETHER SMALL OR BIG. HERE ARE SOME OF
THE ADVANTAGES OF EXTRANET FOR EMPLOYEES, SUPPLIERS,
BUSINESS PARTNERS, AND CUSTOMERS:
ISSUES 3.3 INTERNET
 APART FOR ADVANTAGES THERE ARE ALSO SOME ISSUES ASSOCIATED WITH EXTRANET. THESE ISSUES ARE DISCUSSED
BELOW:
HOSTING
 WHERE THE EXTRANET PAGES WILL BE HELD I.E. WHO WILL HOST THE EXTRANET PAGES. IN THIS CONTEXT THERE ARE
TWO CHOICES:
• HOST IT ON YOUR OWN SERVER.
• HOST IT WITH AN INTERNET SERVICE PROVIDER (ISP) IN THE SAME WAY AS WEB PAGES.

 BUT HOSTING EXTRANET PAGES ON YOUR OWN SERVER REQUIRES HIGH BANDWIDTH INTERNET CONNECTION WHICH IS
VERY COSTLY.
SECURITY
 ADDITIONAL FIREWALL SECURITY IS REQUIRED IF YOU HOST EXTRANET PAGES ON YOUR OWN SERVER WHICH RESULT IN
A COMPLEX SECURITY MECHANISM AND INCREASE WORK LOAD.
ACCESSING ISSUES
 INFORMATION CANNOT BE ACCESSED WITHOUT INTERNET CONNECTION. HOWEVER, INFORMATION CAN BE ACCESSED IN
INTRANET WITHOUT INTERNET CONNECTION.
DECREASED INTERACTION
 IT DECREASES THE FACE TO FACE INTERACTION IN THE BUSINESS WHICH RESULTS IN LACK OF COMMUNICATION AMONG
CUSTOMERS, BUSINESS PARTNERS AND SUPPLIERS.
 3.3 INTERNET
IP ADDRESS
 IP ADDRESS IS A UNIQUE LOGICAL ADDRESS ASSIGNED TO A MACHINE OVER THE NETWORK. AN IP
ADDRESS EXHIBITS THE FOLLOWING PROPERTIES:
• IP ADDRESS IS THE UNIQUE ADDRESS ASSIGNED TO EACH HOST PRESENT ON INTERNET.
• IP ADDRESS IS 32 BITS (4 BYTES) LONG.
• IP ADDRESS CONSISTS OF TWO COMPONENTS: NETWORK COMPONENT AND HOST COMPONENT.
• EACH OF THE 4 BYTES IS REPRESENTED BY A NUMBER FROM 0 TO 255, SEPARATED WITH DOTS. FOR
EXAMPLE 137.170.4.124

 IP ADDRESS IS 32-BIT NUMBER WHILE ON THE OTHER HAND DOMAIN NAMES ARE EASY TO
REMEMBER NAMES. FOR EXAMPLE, WHEN WE ENTER AN EMAIL ADDRESS WE ALWAYS ENTER A
SYMBOLIC STRING SUCH AS [email protected].
HUB
 A HUB IS THE CENTRAL PART OF A WHEEL THAT CONNECTS THE AXLE TO THE WHEEL ITSELF.
MANY EXPRESSIONS USE THE TERM FOR A LITERAL OR FIGURATIVE CENTRAL STRUCTURE
CONNECTING TO A PERIPHERY.
ROUTERS
3.3 INTERNET
 A ROUTER IS A NETWORKING DEVICE THAT FORWARDS DATA PACKETS BETWEEN COMPUTER
NETWORKS. ROUTERS PERFORM THE TRAFFIC DIRECTING FUNCTIONS ON THE INTERNET. A DATA
PACKET IS TYPICALLY FORWARDED FROM ONE ROUTER TO ANOTHER ROUTER THROUGH THE
NETWORKS THAT CONSTITUTE THE INTERNETWORK UNTIL IT REACHES ITS DESTINATION NODE.
 A ROUTER IS CONNECTED TO TWO OR MORE DATA LINES FROM DIFFERENT NETWORKS. WHEN A DATA
PACKET COMES IN ON ONE OF THE LINES, THE ROUTER READS THE NETWORK ADDRESS INFORMATION
IN THE PACKET TO DETERMINE THE ULTIMATE DESTINATION. THEN, USING INFORMATION IN ITS
ROUTING TABLE OR ROUTING POLICY, IT DIRECTS THE PACKET TO THE NEXT NETWORK ON ITS
JOURNEY. THIS CREATES AN OVERLAY INTERNETWORK.
 THE MOST FAMILIAR TYPE OF ROUTERS ARE HOME AND SMALL OFFICE ROUTERS THAT SIMPLY PASS IP
PACKETS BETWEEN THE HOME COMPUTERS AND THE INTERNET. AN EXAMPLE OF A ROUTER WOULD BE
THE OWNER'S CABLE OR DSL ROUTER, WHICH CONNECTS TO THE INTERNET THROUGH AN INTERNET
SERVICE PROVIDER (ISP). MORE SOPHISTICATED ROUTERS, SUCH AS ENTERPRISE ROUTERS, CONNECT
LARGE BUSINESS OR ISP NETWORKS UP TO THE POWERFUL CORE ROUTERS THAT FORWARD DATA AT
HIGH SPEED ALONG THE OPTICAL FIBER LINES OF THE INTERNET BACKBONE. THOUGH ROUTERS ARE
TYPICALLY DEDICATED HARDWARE DEVICES, SOFTWARE-BASED ROUTERS ALSO EXIST.
 3.3 INTERNET
BRIDGES
 BRIDGE DEVICES INSPECT INCOMING NETWORK TRAFFIC AND DETERMINE WHETHER TO
FORWARD OR DISCARD IT ACCORDING TO ITS INTENDED DESTINATION.
 AN ETHERNET BRIDGE, FOR EXAMPLE, INSPECTS EACH INCOMING ETHERNET FRAME -
INCLUDING THE SOURCE AND DESTINATION MAC ADDRESSES, AND SOMETIMES THE FRAME
SIZE - IN MAKING INDIVIDUAL FORWARDING DECISIONS.
 BRIDGE DEVICES OPERATE AT THE DATA LINK LAYER (LAYER 2) OF THE OSI MODEL.

TYPES OF NETWORK BRIDGES

 SEVERAL DIFFERENT KINDS OF BRIDGE DEVICES EXIST, EACH DESIGNED FOR SPECIFIC KINDS
OF NETWORKS INCLUDING
• WIRELESS BRIDGES - SUPPORT WI-FI WIRELESS ACCESS POINTS
• WI-FI ETHERNET BRIDGES - ALLOWS CONNECTING ETHERNET CLIENTS AND INTERFACING THEM TO
A LOCAL WI-FI NETWORK, USEFUL FOR OLDER NETWORK DEVICES THAT LACK WI-FI CAPABILITY
WIRELESS BRIDGING
3.3 INTERNET
 BRIDGING IS ESPECIALLY POPULAR ON WI-FI COMPUTER NETWORKS. IN WI-FI, WIRELESS BRIDGING REQUIRES
ACCESS POINTS COMMUNICATE WITH EACH OTHER IN A SPECIAL MODE THAT SUPPORTS THE TRAFFIC NEEDING TO
FLOW BETWEEN THEM. TWO ACCESS POINTS THAT SUPPORT WIRELESS BRIDGING MODE WORK IN PAIRS. EACH
CONTINUES TO SUPPORT THEIR OWN LOCAL NETWORKS OF CONNECTED CLIENTS WHILE ADDITIONALLY
COMMUNICATING WITH THE OTHER TO HANDLE BRIDGING TRAFFIC.
 NETWORK PROFESSIONALS SOMETIMES USE THE TERM "BSS" - BASIC SERVICE SET - TO REFER TO AN ACCESS POINT
AND ITS LOCAL CLIENTS.
WIRELESS BRIDGING JOINS TWO BSS NETWORKS TOGETHER.
 BRIDGING MODE CAN BE ACTIVATED ON AN ACCESS POINT THROUGH AN ADMINISTRATIVE SETTING OR SOMETIMES
A PHYSICAL SWITCH ON THE UNIT. NOT ALL ACCESS POINTS SUPPORT WIRELESS BRIDGING MODE; CONSULT THE
MANUFACTURER'S DOCUMENTATION TO DETERMINE WHETHER A GIVEN MODEL SUPPORTS THIS FEATURE.
 FOR MORE, SEE: WHAT WIRELESS BRIDGING CAN DO FOR COMPUTER NETWORKS
BRIDGES VS. REPEATERS
 BRIDGE AND RNETWORK REPEATER DEVICES SHARE A SIMILAR PHYSICAL APPEARANCE; SOMETIMES, A SINGLE
UNIT PERFORMS BOTH FUNCTIONS. UNLIKE BRIDGES, HOWEVER, REPEATERS DO NOT PERFORM ANY TRAFFIC
FILTERING AND DO NOT JOIN TWO NETWORKS TOGETHER BUT INSTEAD PASS ALONG ALL TRAFFIC THEY RECEIVE.
REPEATERS SERVE PRIMARILY TO REGENERATE TRAFFIC SIGNALS SO THAT A SINGLE NETWORK CAN REACH
LONGER PHYSICAL DISTANCES.
 3.3 INTERNET
BRIDGES VS. SWITCHES AND ROUTERS
 IN WIRED COMPUTER NETWORKS, BRIDGES SERVE A SIMILAR FUNCTION AS NETWORK SWITCHES.
TRADITIONAL WIRED BRIDGES SUPPORT ONE INCOMING AND ONE OUTGOING NETWORK CONNECTION
(ACCESSIBLE THROUGH A HARDWARE PORT), WHEREAS SWITCHES USUALLY OFFER FOUR OR MORE
HARDWARE PORTS. SWITCHES ARE SOMETIMES CALLED MULTI-PORT BRIDGES FOR THIS REASON.
 LIKEWISE, BRIDGES LACK THE INTELLIGENCE OF NETWORK ROUTERS: BRIDGES DO NOT UNDERSTAND
THE CONCEPT OF REMOTE NETWORKS AND CANNOT REDIRECT MESSAGES TO DIFFERENT LOCATIONS
DYNAMICALLY BUT INSTEAD SUPPORT ONLY ONE OUTSIDE INTERFACE.
LOCAL AREA NETWORK
 A LOCAL AREA NETWORK, OR LAN, CONSISTS OF A COMPUTER NETWORK AT A SINGLE SITE, TYPICALLY AN
INDIVIDUAL OFFICE BUILDING. A LAN IS VERY USEFUL FOR SHARING RESOURCES, SUCH AS DATA STORAGE
AND PRINTERS. LANS CAN BE BUILT WITH RELATIVELY INEXPENSIVE HARDWARE, SUCH AS HUBS,
NETWORK ADAPTERS AND ETHERNET CABLES.
 THE SMALLEST LAN MAY ONLY USE TWO COMPUTERS, WHILE LARGER LANS CAN ACCOMMODATE
THOUSANDS OF COMPUTERS. A LAN TYPICALLY RELIES MOSTLY ON WIRED CONNECTIONS FOR
INCREASED SPEED AND SECURITY, BUT WIRELESS CONNECTIONS CAN ALSO BE PART OF A LAN. HIGH
SPEED AND RELATIVELY LOW COST ARE THE DEFINING CHARACTERISTICS OF LANS.
 3.3 INTERNET
 LANS ARE TYPICALLY USED FOR SINGLE SITES WHERE PEOPLE NEED TO SHARE RESOURCES AMONG
THEMSELVES BUT NOT WITH THE REST OF THE OUTSIDE WORLD. THINK OF AN OFFICE BUILDING WHERE
EVERYBODY SHOULD BE ABLE TO ACCESS FILES ON A CENTRAL SERVER OR BE ABLE TO PRINT A DOCUMENT
TO ONE OR MORE CENTRAL PRINTERS. THOSE TASKS SHOULD BE EASY FOR EVERYBODY WORKING IN THE
SAME OFFICE, BUT YOU WOULD NOT WANT SOMEBODY JUST WALKING OUTSIDE TO BE ABLE TO SEND A
DOCUMENT TO THE PRINTER FROM THEIR CELL PHONE! IF A LOCAL AREA NETWORK, OR LAN, IS ENTIRELY
WIRELESS, IT IS REFERRED TO AS A WIRELESS LOCAL AREA NETWORK, OR WLAN.
METROPOLITAN AREA NETWORK
 A METROPOLITAN AREA NETWORK, OR MAN, CONSISTS OF A COMPUTER NETWORK ACROSS AN ENTIRE
CITY, COLLEGE CAMPUS OR SMALL REGION. A MAN IS LARGER THAN A LAN, WHICH IS TYPICALLY LIMITED
TO A SINGLE BUILDING OR SITE. DEPENDING ON THE CONFIGURATION, THIS TYPE OF NETWORK CAN COVER
AN AREA FROM SEVERAL MILES TO TENS OF MILES. A MAN IS OFTEN USED TO CONNECT SEVERAL LANS
TOGETHER TO FORM A BIGGER NETWORK. WHEN THIS TYPE OF NETWORK IS SPECIFICALLY DESIGNED FOR
A COLLEGE CAMPUS, IT IS SOMETIMES REFERRED TO AS A CAMPUS AREA NETWORK, OR CAN
WIDE AREA NETWORK
 A WIDE AREA NETWORK, OR WAN, OCCUPIES A VERY LARGE AREA, SUCH AS AN ENTIRE COUNTRY OR THE
ENTIRE WORLD. A WAN CAN CONTAIN MULTIPLE SMALLER NETWORKS, SUCH AS LANS OR MANS. THE
INTERNET IS THE BEST-KNOWN EXAMPLE OF A PUBLIC WAN.
 3.4 DOMAIN NAME SYSTEM (DNS)
ARCHITECTURE
 THE DOMAIN NAME SYSTEM COMPRISES OF DOMAIN NAMES, DOMAIN NAME
SPACE, NAME SERVER THAT HAVE BEEN DESCRIBED BELOW:
DOMAIN NAMES
 DOMAIN NAME IS A SYMBOLIC STRING ASSOCIATED WITH AN IP ADDRESS.
THERE ARE SEVERAL DOMAIN NAMES AVAILABLE; SOME OF THEM ARE
GENERIC SUCH AS COM, EDU, GOV, NET ETC, WHILE SOME COUNTRY LEVEL
Domain Name Meaning
DOMAIN NAMES SUCH AS AU, IN, ZA, US ETC.
Com Commercial business
THE FOLLOWING
Edu TABLE SHOWS THEEducation
GENERIC TOP-LEVEL DOMAIN NAMES:
Gov U.S. government agency
Int International entity
Mil U.S. military
Net Networking organization
Org Non profit organization
 3.4 DOMAIN NAME SYSTEM (DNS)
ARCHITECTURE
THE FOLLOWING TABLE SHOWS THE COUNTRY TOP-LEVEL DOMAIN NAMES:
Domain Name Meaning
au Australia
in India
cl Chile
fr France
us United States
za South Africa
uk United Kingdom
jp Japan
es Spain
de Germany
ca Canada
ee Estonia
hk Hong Kong
 3.4 DOMAIN NAME SYSTEM (DNS)
ARCHITECTURE
DOMAIN NAME SPACE
THE DOMAIN NAME SPACE REFERS A HIERARCHY IN THE INTERNET NAMING STRUCTURE. THIS HIERARCHY
HAS MULTIPLE LEVELS (FROM 0 TO 127), WITH A ROOT AT THE TOP. THE FOLLOWING DIAGRAM SHOWS THE
DOMAIN NAME SPACE HIERARCHY:

IN THE ABOVE DIAGRAM EACH SUBTREE REPRESENTS A DOMAIN. EACH DOMAIN CAN BE PARTITIONED INTO
SUB DOMAINS AND THESE CAN BE FURTHER PARTITIONED AND SO ON.
 3.4 DOMAIN NAME SYSTEM (DNS)
ARCHITECTURE
NAME SERVER
 NAME SERVER CONTAINS THE DNS DATABASE. THIS DATABASE COMPRISES OF
VARIOUS NAMES AND THEIR CORRESPONDING IP ADDRESSES. SINCE IT IS NOT
POSSIBLE FOR A SINGLE SERVER TO MAINTAIN ENTIRE DNS DATABASE,
THEREFORE, THE INFORMATION IS DISTRIBUTED AMONG MANY DNS SERVERS.
• HIERARCHY OF SERVER IS SAME AS HIERARCHY OF NAMES.
• THE ENTIRE NAME SPACE IS DIVIDED INTO THE ZONES
ZONES
 ZONE IS COLLECTION OF NODES (SUB DOMAINS) UNDER THE MAIN DOMAIN.
THE SERVER MAINTAINS A DATABASE CALLED ZONE FILE FOR EVERY ZONE.
 3.4 DOMAIN NAME SYSTEM (DNS)
ARCHITECTURE
 IF THE DOMAIN IS NOT FURTHER DIVIDED INTO SUB DOMAINS THEN DOMAIN AND ZONE REFERS TO THE
SAME THING.
 THE INFORMATION ABOUT THE NODES IN THE SUB DOMAIN IS STORED IN THE SERVERS AT THE LOWER
LEVELS HOWEVER; THE ORIGINAL SERVER KEEPS REFERENCE TO THESE LOWER LEVELS OF SERVERS.
TYPES OF NAME SERVERS
 FOLLOWING ARE THE THREE CATEGORIES OF NAME SERVERS THAT MANAGES THE ENTIRE DOMAIN
NAME SYSTEM:
1. ROOT SERVER
2. PRIMARY SERVER
3. SECONDARY SERVER

ROOT SERVER
 ROOT SERVER IS THE TOP LEVEL SERVER WHICH CONSISTS OF THE ENTIRE DNS TREE. IT DOES NOT CONTAIN THE
INFORMATION ABOUT DOMAINS BUT DELEGATES THE AUTHORITY TO THE OTHER SERVER
PRIMARY SERVER
 PRIMARY SERVER STORES A FILE ABOUT ITS ZONE. IT HAS AUTHORITY TO CREATE, MAINTAIN, AND UPDATE THE
ZONE FILE.
 3.4 DOMAIN NAME SYSTEM (DNS)
SECONDARY SERVER
ARCHITECTURE
 SECONDARY SERVER TRANSFERS COMPLETE INFORMATION ABOUT A ZONE FROM
ANOTHER SERVER WHICH MAY BE PRIMARY OR SECONDARY SERVER. THE
SECONDARY SERVER DOES NOT HAVE AUTHORITY TO CREATE OR UPDATE A ZONE
FILE.

DNS WORKING
DNS TRANSLATES THE DOMAIN NAME INTO IP ADDRESS
AUTOMATICALLY. FOLLOWING STEPS WILL TAKE YOU THROUGH
THE STEPS INCLUDED IN DOMAIN RESOLUTION PROCESS:
 WHEN WE TYPE WWW.TUTORIALSPOINT.COM INTO THE BROWSER, IT ASKS THE
LOCAL DNS SERVER FOR ITS IP ADDRESS.
 HERE THE LOCAL DNS IS AT ISP END.
 3.4 DOMAIN NAME SYSTEM (DNS)
ARCHITECTURE
 THE ROOT DNS SERVER REPLIES WITH DELEGATION THAT I DO NOT KNOW THE IP
ADDRESS OF WWW.TUTORIALSPOINT.COM BUT KNOW THE IP ADDRESS OF DNS
SERVER.
 THE LOCAL DNS SERVER THEN ASKS THE COM DNS SERVER THE SAME QUESTION.
 THE COM DNS SERVER REPLIES THE SAME THAT IT DOES NOT KNOW THE IP
ADDRESS OF WWW.TUTORIALSPONT.COM BUT KNOWS THE ADDRESS OF
TUTORIALSPOINT.COM.
 THEN THE LOCAL DNS ASKS THE TUTORIALSPOINT.COM DNS SERVER THE SAME
QUESTION.
 THEN TUTORIALSPOINT.COM DNS SERVER REPLIES WITH IP ADDRESS OF
WWW.TUTORIALSPOINT.COM.
 NOW, THE LOCAL DNS SENDS THE IP ADDRESS OF WWW.TUTORIALSPOINT.COM TO
THE COMPUTER THAT SENDS THE REQUEST
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 ALMOST EVERY MODERN BUSINESS USES IT. ELECTRONIC COMMERCE HAS
GIVEN A NEW WAY FOR BUSINESS ACTIVITIES BEING CONDUCTED
INNOVATIVELY. ELECTRONIC COMMERCE COVERS ALL TYPES OF BUSINESS
TRANSACTIONS THAT ARE CONDUCTED THROUGH ELECTRONIC MEDIA. IN E-
COMMERCE, COMMERCIAL TRANSACTION THAT INVOLVES THE TRANSFER OF
INFORMATION WITH THE HELP OF ANY ELECTRONIC MEDIA AND NOT
NECESSARILY ONLY INTERNET. E-COMMERCE HAS BECOME MORE POPULAR
TODAY BECAUSE OF THE COMMERCIAL SERVICES WHICH ARE EASILY
ACCESSIBLE AND AVAILABLE ON THE INTERNET. E-COMMERCE OVER THE
INTERNET IS INCREASING OVER LAST FEW YEARS AND IS PREDICTED TO
GROW AT AN EVER-INCREASING RATE OVER THE NEXT FEW YEARS.
DEFINITION OF E-COMMERCE:
 E-COMMERCE IS BUYING AND SELLING OF GOODS, INFORMATION & SERVICES
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
FROM AN INTERFACE VIEW, E-COMMERCE MEANS INFORMATION AND
TRANSACTIONS EXCHANGES: BUSINESS TO BUSINESS (B2B), BUSINESS TO
CONSUMER (B2C), CONSUMER TO CONSUMER (C2C), BUSINESS TO
GOVERNMENT (B2G). FOR EXAMPLE, BUSINESS PROCESS LIKE
MANUFACTURING AND INVENTORY AND BUSINESS TO BUSINESS (B2B) PROCESS
LIKE SUPPLY CHAIN MANAGEMENT ARE MANAGED BY THE SAME NETWORKS
AS BUSINESS TO CONSUMER (B2C) PROCESS.

EXAMPLES INVOLVING E-COMMERCE:

 BOOKS, SOFTWARE AND CDS ARE SOLD ONLINE,
 BOOKING TRAVEL/MOVIE/EVENT TICKETS ONLINE AS WELL PROVIDING COMPLETE INFORMATION
ABOUT SUCH SERVICES,
 STOCK TRADING ONLINE,
 INTERNET SHOPPING AND MANY OTHERS…
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
DIFFERENCE BETWEEN E-COMMERCE AND E-BUSINESS
 E-BUSINESS IS THE CONDUCT OF BUSINESS ON THE INTERNET, IN THE SUPPLY CHAIN PLANNING,
TRACKING, FULFILLMENT, INVOICING AND PAYMENT. IT INCLUDES BUYING AND SELLING AS WELL
AS SERVICING CUSTOMERS AND COLLABORATING WITH BUSINESS PARTNERS. ELECTRONIC
INFORMATION IS USE TO BOOST PERFORMANCE AND CREATE VALUE BY FORMING NEW
RELATIONSHIP BETWEEN AND AMONG BUSINESSES AND CUSTOMERS.
 E-BUSINESS GOES BEYOND A WEB SITE ON INTERNET TO AFFECT ALL ASPECTS OF BUSINESS, FROM
STRATEGY AND PROCESS TO TRADING PARTNERS AND THE ULTIMATE CUSTOMER. IT COMBINES
THE RESOURCES OF TRADITIONAL INFORMATION SYSTEM WITH THE GLOBAL REACH OF THE WEB.
IN E-BUSINESS, ORGANIZATIONS HAVE SEVERAL GOALS IN MIND:
 REACH NEW MARKETS
 CREATE NEW PRODUCTS
 BUILT CUSTOMER LOYALTY
 ENRICH HUMAN CAPITAL
 MAKE THE BEST USE OF THE EXISTING AND EMERGING TECHNOLOGIES.
 ACHIEVE MARKET LEADERSHIP AND COMPETITIVE ADVANTAGE.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
ONE EXAMPLE OF E-BUSINESS IS SAP, THE WORLD’S LEADING PROVIDER OF BUSINESS SOFTWARE SOLUTION,
ADDRESSING THE NEEDS OF MIDSIZE AND LARGE BUSINESS AS WELL AS ENTERPRISE-SCALE SUITE SOLUTION
FOR GLOBAL ORGANIZATION. SAP HAS CUSTOMER WITH AN INTEREST IN INTEGRATING THE MAJOR FACETS
OF THE BUSINESS, BUT SUCH CUSTOMERS ARE BRICK AND MORTAR BUSINESSES THAT WANT TO INTEGRATE
INFORMATION WITHIN THEIR DIVISION AND APPLICATIONS. FURTHER ELABORATION ON E-BUSINESS BRINGS
UP THE VALUE-CHAIN CONCEPT AND SUPPLY CHAIN MANAGEMENT.
IN CONTRAST, E-COMMERCE IS SELLING OF GOODS AND SERVICES ON THE RETAIL LEVEL WITH ANYONE,
ANYWHERE VIA INTERNET. IT INCLUDES NEW BUSINESS OPPORTUNITY THAT RESULTS IN GREATER
EFFICIENCY AND MORE EFFECTIVE EXCHANGE OF GOODS AND SERVICES. THE CRUX OF EXCHANGE IS
TRANSACTION-BLOCKS OF INFORMATION EXCHANGE BETWEEN AN E-MERCHANT AND A CUSTOMER VIA THE
CORPORATE WEB SITE. AN EXAMPLE OF E-COMMERCE IS WWW.CRUX.COM IS THE TYPE OF E-FIRM WHICH
USES A WEB SITE TO SELL GOODS AND SERVICES VIA INTERNET.
TYPES OF E-COMMERCE
E-COMMERCE CAN BE CLASSIFIED BY NATURE OF MARKET RELATIONSHIP:

1. BUSINESS-TO-BUSINESS (B2B)
2. BUSINESS-TO-CONSUMER (B2C)
3. CONSUMER-TO-CONSUMER (C2C)
4. GOVERNMENT-TO-BUSINESS (G2B)
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
B2B - BUSINESS TO BUSINESS
 THIS TYPE OF E- COMMERCE IS APPLICABLE WHEN THERE IS TRANSACTION
OF GOODS AND SERVICES BETWEEN THE BUSINESSES. THE GOODS AND
SERVICES INVOLVED MAY BE:
• ONLINE ADVERTISING, SALES, FINANCE CREDIT, TECHNICAL SUPPORT,
MARKET RESEARCH, JOB RECRUITMENT ETC.
 A TYPICAL B2B BUSINESS MODEL CAN BE GRAPHICALLY REPRESENTED AS
SHOWN IN FIGURE BELOW:
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 B2B IS THE SELLING BETWEEN COMPANIES, WHOLESALE RATHER THAN RETAIL. EFFICIENT USE OF
CAPITAL DEMANDS SMALL INVENTORIES, AND MAINTAINING DETAILED INFORMATION FLOWS BETWEEN
ALL PARTIES INVOLVED IN TODAY'S COMPLEX MANUFACTURING PROCESSES. B2B INVOLVES INCREASING
NUMBER OF SUPPLIERS (FOR SAFETY AND COMPETITION), AND OF CENTRALIZING CONTROL (FOR
RECORDS AND DISCOUNTS). B2B ECOMMERCE IS AN IMPORTANT PART OF ANY ONLINE BUSINESS.
B2C - BUSINESS TO CONSUMER
 IT REFERS TO THE SELLING AND BUYING OF GOODS AND SERVICES VIA THE WEB FROM WEB RETAILERS
TO WEB CUSTOMERS. THIS REALLY IS THE SAME THING AS B2B E-COMMERCE WITH ONE KEY EXCEPTION.
WITH B2B IMPLEMENTATIONS, THE PARTIES ARE "TRUSTED BUSINESS PARTNERS" WHO HAVE AN
ESTABLISHED WORKING RELATIONSHIP. WITH B2C E-COMMERCE, THE RETAILERS ARE OFTEN SELLING
TO UNKNOWN, UN-TRUSTED STRANGERS. THEREFORE EXTRA EFFORT MUST BE MADE TO CAPTURE
CUSTOMER AND PAYMENT INFORMATION.
 FURTHER, THIS DATA IS TYPICALLY VERIFIED BEFORE ORDERS ARE FULFILLED. IN THIS RESPECT, B2C IS A
TOUGHER SOLUTION TO PROVIDE THAN B2B. HOWEVER, B2C ALMOST ALWAYS INVOLVES CUSTOMER
TYPING INFORMATION INTO AN ORDER SCREEN; THERE IS NO NEED TO LINK TOGETHER TWO COMPLEX
ACCOUNTING SYSTEMS. IN THIS RESPECT, B2B IS A MUCH TOUGHER SOLUTION TO DELIVER.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
A TYPICAL B2B BUSINESS MODEL CAN BE GRAPHICALLY REPRESENTED
AS SHOWN IN FIGURE BELOW:

GRAPHICAL REPRESENTATION OF B2C E-COMMERCE BUSINESS MODEL

 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
C2C - CONSUMER TO CONSUMER
 THE INTRODUCTION OF THE NEW ECONOMY HAS HELPED TO CREATE A VERY
INDIVIDUALISTIC AND INDEPENDENT SOCIETY. IT FACILITATES THE ONLINE
TRANSACTION OF GOODS OR SERVICES BETWEEN TWO PEOPLE THERE IS NO
VISIBLE INTERMEDIARY INVOLVED. CONSUMERS ARE NO LONGER TOTALLY
RELIANT ON CORPORATIONS AND ARE INCREASINGLY LOOKING TO CONDUCT
THEIR OWN BUSINESS TRANSACTIONS. C2C APPLICATIONS ARE ANY
TRANSACTIONS BETWEEN AND AMONGST CONSUMERS. THEY ARE OFTEN
DESCRIBED AS PEER-TO-PEER (P2P).
 WHEN E-COMMERCE WAS FIRST INTRODUCED, IT REDEFINED THE
TRADITIONAL STRUCTURE OF BUSINESS BY GIVING SMALL FIRMS AND
INDIVIDUALS THE SAME OPPORTUNITY AS MULTI-NATIONAL CORPORATIONS.
AS A RESULT, MANY INDIVIDUALS ESTABLISHED ONLINE ORGANIZATIONS
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 OTHER EXAMPLES OF CONSUMER-TO-CONSUMER APPLICATIONS ARE SERVICE AND
EMPLOYMENT WEBSITES SUCH AS MONSTER.COM, NAUKRI.COM AND CAREERONE.COM ETC.
 THESE WEBSITES PROVIDE A VALUABLE SERVICE TO CONSUMERS LOOKING FOR JOBS.
EMPLOYERS CAN ADVERTISE ON THESE WEBSITES AND POTENTIAL EMPLOYEES CAN CONTACT
THEIR ORGANIZATION FOR AN INTERVIEW.
 WEB-BASED COMMUNICATION ORGANIZATIONS ARE ONE FINAL EXAMPLE OF A C2C
OPERATION. SITES SUCH AS OLX.COM, ICQ.COM AND MSN.COM ACT AS A COMMUNICATIONS
MEDIUM FOR PEER-TO-PEER DELIBERATIONS.
 ACCORDING TO DICTIONARY.COM, THE TERM COMMERCE IS DEFINED AS FOLLOWS: "THE
BUYING AND SELLING OF GOODS, ESPECIALLY ON A LARGE SCALE, AS BETWEEN CITIES OR
NATIONS". THIS DEFINITION IS STRAIGHT FORWARD AND EASY TO UNDERSTAND. FROM HERE,
WE ADD THE "E" FOR "ELECTRONIC", AND WE DERIVE THE DEFINITION: "BUYING AND
SELLING OF GOODS ELECTRONICALLY". THIS TYPICALLY MEANS THAT ORDERS AND
PAYMENTS PASS ELECTRONICALLY. HOWEVER, THERE IS MORE TO THIS - MUCH MORE, AS
FOLLOWS: THEY ARE ALSO CLASSIFIED AS C2C.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
C2C E-COMMERCE
C2C E-COMMERCE HAS ALSO EMERGED THAT ALLOWS
UNKNOWN, UN-TRUSTED PARTIES TO SELL GOODS AND SERVICES
TO ONE-ANOTHER. AN EXCELLENT EXAMPLE OF THIS IS FOUND
AT EBAY, WHERE CONSUMERS SELL THEIR GOODS AND SERVICES
TO OTHER CONSUMERS. TO ACCOMMODATE THIS ACTIVITY,
SEVERAL TECHNOLOGIES HAVE EMERGED. FIRSTLY, EBAY
ALLOWS ALL SELLERS AND BUYERS TO RATE ONE ANOTHER. IN
THIS MANNER, FUTURE PROSPECTIVE PURCHASERS MAY SEE
THAT A PARTICULAR SELLER HAS SOLD TO MORE THAN 2,000
CUSTOMERS - ALL OF WHOM RATE THE SELLER AS EXCELLENT.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
G2B – GOVERNMENT TO BUSINESS

THIS TYPE OF E-COMMERCE GENERALLY REFERS TO THE COLLECTION OF TAXES OR

STATUTORY PAYMENTS MADE TO THE GOVERNMENT BY THE BUSINESS COMMUNITY.
FOR EXAMPLE, INCOME TAX, SALES TAX, SERVICE TAX PAID ONLINE ON PERIODIC
BASIS. THE PAYMENT OR THE TRANSACTION IS ENTIRELY ELECTRONIC, AND
THROUGH THE BANKS ACTING AS INTER-MEDIATORY AGENTS. MORE AND MORE
COMPANIES ARE USING THIS GATEWAY PROVIDED BY THE GOVERNMENT TO MAKE
PAYMENTS SMOOTHLY AND IN A SECURED MANNER.
BUSINESS MODELS OF E-COMMERCE
 A MODEL WHICH DESCRIBES A SET OF BUSINESS ENTITIES & RELATION BETWEEN THEM IS CALLED A
BUSINESS MODEL.
 BUSINESS MODEL IS A SET OF PLANNED ACTIVITIES DESIGNED TO RESULT IN A PROFIT IN A MARKETPLACE.
 BUSINESS MODELS HELPS IN IDENTIFYING APPROPRIATE SOLUTIONS AT SOME LEVELS OF ABSTRACTION.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
QUESTIONS KEPT IN MIND WHILE DESIGNING BUSINESS MODEL:
 THE BUSINESS MODELS THAT HAVE EMERGED ON THE INTERNET CAN BE CLASSIFIED
INTO TWO CATEGORIES,
 WHY SHOULD THE CUSTOMER BUY FROM YOU?
 HOW WILL YOU EARN MONEY?
 WHAT MARKETPLACE DO YOU INTEND TO SERVE, AND WHAT IS ITS SIZE?
 WHO ELSE OCCUPIES YOUR INTENDED MARKET SPACE?
 WHAT SPECIAL ADVANTAGES DOES YOUR FIRM BRING TO THE MARKET SPACE?
 HOW DO YOU PLAN TO PROMOTE YOUR PRODUCTS OR SERVICES TO ATTRACT YOUR
AUDIENCES?
 WHAT KIND OF EXPERIENCES AND BACKGROUND ARE IMPORTANT FOR THE
COMPANY’S LEADERS TO HAVE?
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
GENERALLY E-COMMERCE MODELS ARE DESIGNED ON THE FOLLOWING BASIS:
1. MODELS BASED ON THE ACTIVITIES THAT OCCUR IN THE REAL WORLD & HAVE BEEN TRANSPLANTED ON THE
INTERNET.
2. MODELS THAT NATURALLY INVOLVES THE INTERNET ENVIRONMENT & EVOLVES FROM THE SAME ENVIRONMENT.

 BUSINESS MODELS ARE PERHAPS THE MOST DISCUSSED AND LEAST UNDERSTOOD ASPECT OF THE WEB.
THERE IS SO MUCH TALK ABOUT HOW THE WEB CHANGES TRADITIONAL BUSINESS MODELS. BUT THERE IS
LITTLE CLEAR-CUT EVIDENCE OF EXACTLY WHAT THIS MEANS. IN THE MOST BASIC SENSE, A BUSINESS
MODEL IS THE METHOD OF DOING BUSINESS BY WHICH A COMPANY CAN SUSTAIN ITSELF -- THAT IS,
GENERATE REVENUE. THE BUSINESS MODEL SPELLS-OUT HOW A COMPANY MAKES MONEY BY SPECIFYING
WHERE IT IS POSITIONED IN THE VALUE CHAIN.
 SOME MODELS ARE QUITE SIMPLE. A COMPANY PRODUCES A GOOD OR SERVICE AND SELLS IT TO
CUSTOMERS. IF ALL GOES WELL, THE REVENUES FROM SALES EXCEED THE COST OF OPERATION AND THE
COMPANY REALIZES A PROFIT. OTHER MODELS CAN BE MORE INTRICATELY WOVEN. BROADCASTING IS A
GOOD EXAMPLE. RADIO AND LATER TELEVISION PROGRAMMING HAS BEEN BROADCASTED OVER THE
AIRWAVES FREE TO ANYONE WITH A RECEIVER FOR MUCH OF THE PAST CENTURY. THE BROADCASTER IS
PART OF A COMPLEX NETWORK OF DISTRIBUTORS, CONTENT CREATORS, ADVERTISERS (AND THEIR
AGENCIES), AND LISTENERS OR VIEWERS. WHO MAKES MONEY AND HOW MUCH IS NOT ALWAYS CLEAR AT
THE OUTSET. THE BOTTOM LINE DEPENDS ON MANY COMPETING FACTORS.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 INTERNET COMMERCE WILL GIVE RISE TO NEW KINDS OF BUSINESS MODELS. THAT MUCH IS CERTAIN. BUT THE WEB
IS ALSO LIKELY TO REINVENT TRIED-AND-TRUE MODELS. AUCTIONS ARE A PERFECT EXAMPLE. ONE OF THE OLDEST
FORMS OF BROKERING, AUCTIONS HAVE BEEN WIDELY USED THROUGHOUT THE WORLD TO SET PRICES FOR SUCH
ITEMS AS AGRICULTURAL COMMODITIES, FINANCIAL INSTRUMENTS, AND UNIQUE ITEMS LIKE FINE ART AND
ANTIQUITIES. THE WEB HAS POPULARIZED THE AUCTION MODEL AND BROADENED ITS APPLICABILITY TO A WIDE
ARRAY OF GOODS AND SERVICES. MOST IMPORTANTLY, THESE BUSINESS MODELS ENTIRELY DEPEND ON
“ELECTRONIC DATA INTERCHANGE (EDI)” AND “ELECTRONIC FUND TRANSFER (EFT)” MECHANISM.
 BUSINESS MODELS HAVE BEEN DEFINED AND CATEGORIZED IN MANY DIFFERENT WAYS. THIS IS ONE ATTEMPT TO
PRESENT A COMPREHENSIVE AND COGENT TAXONOMY OF BUSINESS MODELS OBSERVABLE ON THE WEB. THE
PROPOSED TAXONOMY IS NOT MEANT TO BE EXHAUSTIVE OR DEFINITIVE. INTERNET BUSINESS MODELS CONTINUE
TO EVOLVE. NEW AND INTERESTING VARIATIONS CAN BE EXPECTED IN THE FUTURE.
THE BASIC CATEGORIES OF BUSINESS MODELS POSSIBLY AVAILABLE FOR E-COMMERCE INCLUDE:

1. BROKERAGE
2. ADVERTISING
3. INFOMEDIARY
4. MERCHANT
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
5. MANUFACTURER (DIRECT)
6. AFFILIATE
7. COMMUNITY
8. SUBSCRIPTION
9. UTILITY
10. TRANSACTION FEE
11. SALES REVENUE
The models are implemented in a variety of ways, as described below with
examples. Moreover, a firm may combine several different models as part
of its overall Internet business strategy. E.g., it is not uncommon for content
driven businesses to blend advertising with a subscription model.
Business models have taken on greater importance recently as a form of
intellectual property that can be protected with a patent. Indeed, business
models (or more broadly speaking, "business methods") have fallen
increasingly within the realm of patent law. A number of business method
patents relevant to e-commerce have been granted. But what is new and
novel as a business model is not always clear. Some of the more noteworthy
patents may be challenged in the courts
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
1. BROKERAGE MODEL
 BROKERS ARE MARKET-MAKERS: THEY BRING BUYERS AND SELLERS TOGETHER AND FACILITATE
TRANSACTIONS. BROKERS PLAY A FREQUENT ROLE IN BUSINESS-TO-BUSINESS (B2B), BUSINESS-TO-CONSUMER
(B2C), OR CONSUMER-TO-CONSUMER (C2C) MARKETS. USUALLY A BROKER CHARGES A FEE OR COMMISSION
FOR EACH TRANSACTION IT ENABLES. THE FORMULA FOR FEES CAN VARY. BROKERAGE MODELS INCLUDE:
 MARKETPLACE EXCHANGE: OFFERS A FULL RANGE OF SERVICES COVERING THE TRANSACTION PROCESS,
FROM MARKET ASSESSMENT TO NEGOTIATION AND FULFILLMENT. EXCHANGES OPERATE INDEPENDENTLY
OR ARE BACKED BY AN INDUSTRY CONSORTIUM.
 BUY/SELL FULFILLMENT: TAKES CUSTOMER ORDERS TO BUY OR SELL A PRODUCT OR SERVICE, INCLUDING
TERMS LIKE PRICE AND DELIVERY.
 DEMAND COLLECTION SYSTEM: THE PATENTED "NAME-YOUR-PRICE" MODEL PIONEERED BY
PRICELINE.COM. PROSPECTIVE BUYER MAKES A FINAL (BINDING) BID FOR A SPECIFIED GOOD OR SERVICE,
AND THE BROKER ARRANGES FULFILLMENT.
 AUCTION BROKER: CONDUCTS AUCTIONS FOR SELLERS (INDIVIDUALS OR MERCHANTS). BROKER CHARGES
THE SELLER A LISTING FEE AND COMMISSION SCALED WITH THE VALUE OF THE TRANSACTION. AUCTIONS
VARY WIDELY IN TERMS OF THE OFFERING AND BIDDING RULES.
 TRANSACTION BROKER: PROVIDES A THIRD-PARTY PAYMENT MECHANISM FOR BUYERS AND SELLERS TO
SETTLE A TRANSACTION.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 DISTRIBUTOR: IS A CATALOG OPERATION THAT CONNECTS A LARGE NUMBER OF PRODUCT MANUFACTURERS WITH
VOLUME AND RETAIL BUYERS. BROKER FACILITATES BUSINESS TRANSACTIONS BETWEEN FRANCHISED
DISTRIBUTORS AND THEIR TRADING PARTNERS.
 SEARCH AGENT: A SOFTWARE AGENT OR "ROBOT" USED TO SEARCH-OUT THE PRICE AND AVAILABILITY FOR A GOOD
OR SERVICE SPECIFIED BY THE BUYER, OR TO LOCATE HARD TO FIND INFORMATION.
 VIRTUAL MARKETPLACE: OR VIRTUAL MALL, A HOSTING SERVICE FOR ONLINE MERCHANTS THAT CHARGES SETUP,
MONTHLY LISTING, AND/OR TRANSACTION FEES. MAY ALSO PROVIDE AUTOMATED TRANSACTION AND
RELATIONSHIP MARKETING SERVICES. RETURN TO TOP.
2. ADVERTISING MODEL:
 WEBSITES PROVIDING CONTENT, E-MAIL, CHAT SESSIONS & DISCUSSION FORUMS ARE USED TO DISPLAY
ADVERTISEMENTS. THIS MODEL IS DERIVED FROM COMMERCIAL TELEVISION & PRINT PUBLICATIONS THAT MAKE
THEIR BASIC REVENUE FROM THE ADVERTISEMENT STREAM. THIS MODEL HAS SEVERAL VARIATIONS; BANNER
ADVERTISEMENT IS ONE OF THEM.
 BANNER ADVERTISEMENTS ARE SERVED ON THE POPULAR SITES (WITH CONTENT OR SERVICE). WHEN USER CLICKS
ON THE BANNER HE IS TAKEN TO THE WEBSITE OF THE SPONSOR, PROVIDING DETAILED INFORMATION OF THE
SPONSOR. FOR E.G. CRICK INFO ATTRACTS CRICKET FANS FOR GATHERING NEWS, INFORMATION & STATISTICS
RELATED TO CRICKET & SERVES AS AN IDEAL SOURCE FOR ADVERTISING PRODUCTS RELATED TO CRICKET.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 THE WEB ADVERTISING MODEL IS AN EXTENSION OF THE TRADITIONAL MEDIA BROADCAST MODEL. THE
BROADCASTER, IN THIS CASE, A WEB SITE, PROVIDES CONTENT (USUALLY, BUT NOT NECESSARILY, FOR FREE)
AND SERVICES (LIKE EMAIL, IM, BLOGS) MIXED WITH ADVERTISING MESSAGES IN THE FORM OF BANNER ADS.
THE BANNER ADS MAY BE THE MAJOR OR SOLE SOURCE OF REVENUE FOR THE BROADCASTER. THE
BROADCASTER MAY BE A CONTENT CREATOR OR A DISTRIBUTOR OF CONTENT CREATED ELSEWHERE. THE
ADVERTISING MODEL WORKS BEST WHEN THE VOLUME OF VIEWER TRAFFIC IS LARGE OR HIGHLY
SPECIALIZED.
 CONTEXTUAL ADVERTISING / BEHAVIORAL MARKETING: FREEWARE DEVELOPERS WHO BUNDLE ADWARE
WITH THEIR PRODUCT. FOR EXAMPLE, A BROWSER EXTENSION THAT AUTOMATES AUTHENTICATION AND
FORM FILL-INS, ALSO DELIVERS ADVERTISING LINKS OR POP-UPS AS THE USER SURFS THE WEB. CONTEXTUAL
ADVERTISERS CAN SELL TARGETED ADVERTISING BASED ON AN INDIVIDUAL USER'S SURFING ACTIVITY.
 CONTENT-TARGETED ADVERTISING: PIONEERED BY GOOGLE, IT EXTENDS THE PRECISION OF SEARCH
ADVERTISING TO THE REST OF THE WEB. GOOGLE IDENTIFIES THE MEANING OF A WEB PAGE AND THEN
AUTOMATICALLY DELIVERS RELEVANT ADS WHEN A USER VISITS THAT PAGE.
 COMMUNITY PROVIDER: SITES THAT CREATE A DIGITAL ONLINE ENVIRONMENT WHERE PEOPLE WITH
SIMILAR INTERESTS CAN TRANSACT, COMMUNICATE, AND RECEIVE INTEREST RELATED INFORMATION. THIS
MODEL TYPICALLY IS BASED ON A HYBRID REVENUE MODEL.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 EXAMPLES: IVILLAGE.COM, FRIENDSTER.COM, ABOUT.COM

 CLASSIFIEDS: LIST ITEMS FOR SALE OR WANTED FOR PURCHASE. LISTING FEES
ARE COMMON, BUT THERE ALSO MAY BE A MEMBERSHIP FEE.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
E-TAILER:
 E-TAILER REFERS TO AN ONLINE VERSION OF TRADITIONAL RETAILER. AN E-TAILER IS A RETAILER
THAT PRIMARILY USES THE INTERNET AS A MEDIUM FOR CUSTOMERS TO SHOP FOR THE GOODS OR
SERVICES PROVIDED.
TWO DISTINCT CATEGORIES OF E-TAILERS ARE PURE PLAYS AND BRICKS AND CLICKS.
• A PURE PLAY E-TAILER USES THE INTERNET AS ITS PRIMARY MEANS OF RETAILING. FOR EXAMPLE
AMAZON.COM.
• A BRICK AND CLICK E-TAILER USES THE INTERNET TO PUSH ITS GOOD OR SERVICE BUT ALSO HAS THE
TRADITIONAL PHYSICAL STOREFRONT AVAILABLE TO CUSTOMERS.

 INTROMERCIALS: ANIMATED FULL-SCREEN ADS PLACED AT THE ENTRY OF AN ADVERTISING MODEL.

THE WEB ADVERTISING MODEL IS AN EXTENSION OF THE TRADITIONAL MEDIA BROADCAST MODEL.
THE BROADCASTER, IN THIS CASE, A WEB SITE, PROVIDES CONTENT (USUALLY, BUT NOT NECESSARILY,
FOR FREE) AND SERVICES (LIKE EMAIL, IM, BLOGS) MIXED WITH ADVERTISING MESSAGES IN THE
FORM OF BANNER ADS. THE BANNER ADS MAY BE THE MAJOR OR SOLE SOURCE OF REVENUE FOR THE
BROADCASTER. THE BROADCASTER MAY BE A CONTENT CREATOR OR A DISTRIBUTOR OF CONTENT
CREATED ELSEWHERE. THE ADVERTISING MODEL WORKS BEST WHEN THE VOLUME OF VIEWER
TRAFFIC IS LARGE OR HIGHLY SPECIALIZED.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
PORTAL: USUALLY A SEARCH ENGINE THAT MAY INCLUDE VARIED CONTENT OR
SERVICES. A HIGH VOLUME OF USER TRAFFIC MAKES ADVERTISING PROFITABLE
AND PERMITS FURTHER DIVERSIFICATION OF SITE SERVICES. A PERSONALIZED
PORTAL ALLOWS CUSTOMIZATION OF THE INTERFACE AND CONTENT TO THE USER.
A NICHE PORTAL CULTIVATES A WELL-DEFINED USER DEMOGRAPHIC.
PORTAL OFFERS POWERFUL SEARCH TOOLS PLUS AN INTEGRATED PACKAGE OF
CONTENT AND SERVICES. THESE SERVICES TYPICALLY UTILIZE A
SUBSCRIPTION/ADVERTISING REVENUES/TRANSACTION FEE MODEL. ON LOADING
ANY WEBSITE THE USER IS PRESENTED WITH A FIRST PAGE, THIS PAGE IS THE
PORTAL THE PLACE FROM WHICH FACILITIES OF THE INTERNET CAN BE ACCESSED.
THIS IS COMMON PLACE THROUGH WHICH ALL USERS ARE LIKELY TO PASS. AN
ADVERTISEMENT ON A POPULAR PORTAL IS EQUIVALENT TO A TV ADVERTISEMENT
AT PRIME TIME WHICH IS SEEN BY MILLIONS.
 ADVERTISEMENTS ON THE PORTALS CAN BE BANNERS, LITTLE BOXES OR BACKGROUNDS.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 MARKET CREATOR: THIS MODEL USES INTERNET TECHNOLOGY TO CREATE MARKETS THAT BRINGS
BUYERS AND SELLERS TOGETHER. FOR EXAMPLE: EBAY.COM THIS MODEL TYPICALLY USES
TRANSACTION FEE REVENUE MODEL.
 SERVICE PROVIDER: THIS MODEL DEALS WITH OFFERING SERVICES ONLINE. THIS MODEL HELPS IN
PROVIDING VALUABLE, CONVENIENT, TIMESAVING, LOW-COST SERVICES COMPARED TO TRADITIONAL
SERVICE PROVIDERS. THIS MODEL IS BASED ON SUBSCRIPTION FEES OR ONETIME PAYMENT MODELS.
 USER REGISTRATION: CONTENT-BASED SITES THAT ARE FREE TO ACCESS BUT REQUIRE USERS TO
REGISTER AND PROVIDE DEMOGRAPHIC DATA. REGISTRATION ALLOWS INTER-SESSION TRACKING OF
USER SURFING HABITS AND THEREBY GENERATES DATA OF POTENTIAL VALUE IN TARGETED
ADVERTISING CAMPAIGNS.
 QUERY-BASED PAID PLACEMENT: SELLS FAVORABLE LINK POSITIONING (I.E., SPONSORED LINKS) OR
ADVERTISING KEYED TO PARTICULAR SEARCH TERMS IN A USER QUERY, SUCH AS OVERTURE'S
TRADEMARK "PAY-FOR-PERFORMANCE" MODEL.
 ULTRAMERCIALS: INTERACTIVE ONLINE ADS THAT REQUIRE THE USER TO RESPOND INTERMITTENTLY
IN ORDER TO WADE THROUGH THE MESSAGE BEFORE REACHING THE INTENDED CONTENT.
 3.5 EMERGENCE OF E-COMMERCE & M-
3. INFOMEDIARY MODEL
COMMERCE
 DATA ABOUT CONSUMERS AND THEIR CONSUMPTION HABITS ARE VALUABLE, ESPECIALLY
WHEN THAT INFORMATION IS CAREFULLY ANALYZED AND USED TO TARGET MARKETING
CAMPAIGNS. INDEPENDENTLY COLLECTED DATA ABOUT PRODUCERS AND THEIR PRODUCTS
ARE USEFUL TO CONSUMERS WHEN CONSIDERING A PURCHASE. SOME FIRMS FUNCTION AS
INFOMEDIARIES (INFORMATION INTERMEDIARIES) ASSISTING BUYERS AND/OR SELLERS
UNDERSTAND A GIVEN MARKET.
 ADVERTISING NETWORKS: FEED BANNER ADS TO A NETWORK OF MEMBER SITES, THEREBY
ENABLING ADVERTISERS TO DEPLOY LARGE MARKETING CAMPAIGNS. AD NETWORKS COLLECT
DATA ABOUT WEB USERS THAT CAN BE USED TO ANALYZE MARKETING EFFECTIVENESS.
 AUDIENCE MEASUREMENT SERVICES: ONLINE AUDIENCE MARKET RESEARCH AGENCIES.
 INCENTIVE MARKETING: CUSTOMER LOYALTY PROGRAM THAT PROVIDES INCENTIVES TO
CUSTOMERS SUCH AS REDEEMABLE POINTS OR COUPONS FOR MAKING PURCHASES FROM
ASSOCIATED RETAILERS. DATA COLLECTED ABOUT USERS IS SOLD FOR TARGETED
ADVERTISING.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 METAMEDIARY: FACILITATES TRANSACTIONS BETWEEN BUYER AND SELLERS BY PROVIDING
COMPREHENSIVE INFORMATION AND ANCILLARY SERVICES, WITHOUT BEING INVOLVED IN THE
ACTUAL EXCHANGE OF GOODS OR SERVICES BETWEEN THE PARTIES.
4. MERCHANT MODEL
 WHOLESALERS AND RETAILERS OF GOODS AND SERVICES. SALES MAY BE MADE BASED ON LIST
PRICES OR THROUGH AUCTION.
 VIRTUAL MERCHANT: OR E-TAILER, IS A RETAIL MERCHANT THAT OPERATES SOLELY OVER THE
WEB
 CATALOG MERCHANT: MAIL-ORDER BUSINESS WITH A WEB-BASED CATALOG. COMBINES MAIL,
TELEPHONE AND ONLINE ORDERING.
 CLICK AND MORTAR: TRADITIONAL BRICK-AND-MORTAR RETAIL ESTABLISHMENT WITH WEB
STOREFRONT.
 BIT VENDOR: A MERCHANT THAT DEALS STRICTLY IN DIGITAL PRODUCTS AND SERVICES AND, IN
ITS PUREST FORM, CONDUCTS BOTH SALES AND DISTRIBUTION OVER THE WEB RETURN TO TOP.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
5. MANUFACTURER (DIRECT) MODEL
 THE MANUFACTURER OR "DIRECT MODEL", IT IS PREDICATED ON THE POWER OF THE WEB TO ALLOW A
MANUFACTURER (I.E., A COMPANY THAT CREATES A PRODUCT OR SERVICE) TO REACH BUYERS DIRECTLY AND
THEREBY COMPRESS THE DISTRIBUTION CHANNEL. THE MANUFACTURER MODEL CAN BE BASED ON
EFFICIENCY, IMPROVED CUSTOMER SERVICE, AND A BETTER UNDERSTANDING OF CUSTOMER PREFERENCES.
 PURCHASE: THE SALE OF A PRODUCT IN WHICH THE RIGHT OF OWNERSHIP IS TRANSFERRED TO THE BUYER.
 LEASE: IN EXCHANGE FOR A RENTAL FEE, THE BUYER RECEIVES THE RIGHT TO USE THE PRODUCT UNDER A
“TERMS OF USE” AGREEMENT. THE PRODUCT IS RETURNED TO THE SELLER UPON EXPIRATION OR DEFAULT OF
THE LEASE AGREEMENT. ONE TYPE OF AGREEMENT MAY INCLUDE A RIGHT OF PURCHASE UPON EXPIRATION
OF THE LEASE.
 LICENSE: THE SALE OF A PRODUCT THAT INVOLVES ONLY THE TRANSFER OF USAGE RIGHTS TO THE BUYER, IN
ACCORDANCE WITH A “TERMS OF USE” AGREEMENT. OWNERSHIP RIGHTS REMAIN WITH THE MANUFACTURER
(E.G., WITH SOFTWARE LICENSING).
 BRAND INTEGRATED CONTENT: IN CONTRAST TO THE SPONSORED-CONTENT APPROACH (I.E., THE ADVERTISING
MODEL), BRAND-INTEGRATED CONTENT IS CREATED BY THE MANUFACTURER ITSELF FOR THE SOLE BASIS OF
PRODUCT PLACEMENT.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
6. AFFILIATE/ASSOCIATE MODEL
 IN CONTRAST TO THE GENERALIZED PORTAL, WHICH SEEKS TO DRIVE A HIGH VOLUME OF TRAFFIC TO ONE
SITE, THE AFFILIATE MODEL PROVIDES PURCHASE OPPORTUNITIES WHEREVER PEOPLE MAY BE SURFING.
IT DOES THIS BY OFFERING FINANCIAL INCENTIVES (IN THE FORM OF A PERCENTAGE OF REVENUE) TO
AFFILIATED PARTNER SITES. THE AFFILIATES PROVIDE PURCHASE-POINT CLICK-THROUGH TO THE
MERCHANT. IT IS A PAY-FOR-PERFORMANCE MODEL -- IF AN AFFILIATE DOES NOT GENERATE SALES, IT
REPRESENTS NO COST TO THE MERCHANT. THE AFFILIATE MODEL IS INHERENTLY WELL-SUITED TO THE
WEB, WHICH EXPLAINS ITS POPULARITY. VARIATIONS INCLUDE BANNER EXCHANGE, PAY-PER-CLICK, AND
REVENUE SHARING PROGRAMS.
 BANNER EXCHANGE -- TRADES BANNER PLACEMENT AMONG A NETWORK OF AFFILIATED SITES.
 PAY-PER-CLICK -- SITE THAT PAYS AFFILIATES FOR A USER CLICK-THROUGH.
 REVENUE SHARING -- OFFERS A PERCENT-OF-SALE COMMISSION BASED ON A USER CLICK-THROUGH IN
WHICH THE USER SUBSEQUENTLY PURCHASES A PRODUCT.
 THROUGH THIS TYPE OF MODEL THE COMPANIES OFFER SALES OF OTHER MANUFACTURERS OR
SPONSORING MERCHANT’S PRODUCTS ON THEIR WEBSITES WHICH EARNS THEM INCENTIVES. THE
AFFILIATE SITES EARN INCENTIVES REVENUE BASED ON THE VALUE OF EACH TRANSACTION.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 THE AFFILIATE PROVIDES A CLICK-THROUGH AREA ON THEIR SITES TO THE SPONSORING MERCHANTS.
EXAMPLES OF SUCH MODELS CAN BE SEEN AT AMAZON.COM & GOTO.COM. THE AFFILIATE MODEL IS WELL
SUITED TO THE WEB & IS WELL POPULAR.
 FOR E.G. AMAZON.COM OFFERS ITS AFFILIATE PROGRAMS AS AMAZON ASSOCIATE PROGRAM, ANYONE CAN JOIN
THIS PROGRAM FOR FREE BY CREATING AN ACCOUNT WITH AMAZON.COM. IF THE VISITOR CLICKS FROM THE
ASSOCIATE SITE TO AMAZON.COM AND MAKES A PURCHASE THE ASSOCIATE SITE EARNS COMMISSION FOR THIS.
7. COMMUNITY MODEL
 THE VIABILITY OF THE COMMUNITY MODEL IS BASED ON USER LOYALTY. USERS HAVE A HIGH INVESTMENT IN
BOTH TIME AND EMOTION. REVENUE CAN BE BASED ON THE SALE OF ANCILLARY PRODUCTS AND SERVICES OR
VOLUNTARY CONTRIBUTIONS; OR REVENUE MAY BE TIED TO CONTEXTUAL ADVERTISING AND SUBSCRIPTIONS
FOR PREMIUM SERVICES. THE INTERNET IS INHERENTLY SUITED TO COMMUNITY BUSINESS MODELS AND TODAY
THIS IS ONE OF THE MORE FERTILE AREAS OF DEVELOPMENT, AS SEEN IN RISE OF SOCIAL NETWORKING.
 OPEN SOURCE: SOFTWARE DEVELOPED COLLABORATIVELY BY A GLOBAL COMMUNITY OF PROGRAMMERS WHO
SHARE CODE OPENLY. INSTEAD OF LICENSING CODE FOR A FEE, OPEN SOURCE RELIES ON REVENUE GENERATED
FROM RELATED SERVICES LIKE SYSTEMS INTEGRATION, PRODUCT SUPPORT, TUTORIALS AND USER
DOCUMENTATION.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 OPEN CONTENT: OPENLY ACCESSIBLE CONTENT DEVELOPED COLLABORATIVELY BY A GLOBAL
COMMUNITY OF CONTRIBUTORS WHO WORK VOLUNTARILY.
 PUBLIC BROADCASTING: USER-SUPPORTED MODEL USED BY NOT-FOR-PROFIT RADIO AND TELEVISION
BROADCASTING EXTENDED TO THE WEB. A COMMUNITY OF USERS SUPPORTS THE SITE THROUGH
VOLUNTARY DONATIONS.
 SOCIAL NETWORKING SERVICES: SITES THAT PROVIDE INDIVIDUALS WITH THE ABILITY TO CONNECT TO
OTHER INDIVIDUALS ALONG A DEFINED COMMON INTEREST (PROFESSIONAL, HOBBY, ROMANCE). SOCIAL
NETWORKING SERVICES CAN PROVIDE OPPORTUNITIES FOR CONTEXTUAL ADVERTISING AND
SUBSCRIPTIONS FOR PREMIUM SERVICES.
8. SUBSCRIPTION MODEL
 IN THIS MODEL, USERS SUBSCRIBE TO THE WEBSITES & ARE GIVEN ACCESS TO INFORMATION FOR A PERIOD
OF TIME & PAY FOR THE SAME. SCIENTIFIC JOURNALS, NEWS MAGAZINES & OTHER PERIODIC CONTENTS
ARE GIVEN ON A SUBSCRIPTION BASIS. THE MODEL REQUIRES THAT THE CONTENT BEING OFFERED ON
SUBSCRIPTION BASIS SHOULD NOT BE AVAILABLE AT OTHER PLACES FOR FREE. PREMIUM CONTENT &
SERVICES ARE MADE AVAILABLE TO THE SUBSCRIBERS ONLY. SUBSCRIPTION FEES ARE INCURRED
IRRESPECTIVE OF ACTUAL USAGE RATES. SUBSCRIPTION AND ADVERTISING MODELS ARE FREQUENTLY
COMBINED.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 FOR E.G. WWW.NETFLIX.COM PROVIDES ACCESS TO PREMIUM MOVIES /
EVENTS ON THE SUBSCRIPTION BASIS.
 CONTENT SERVICES -- PROVIDE TEXT, AUDIO, OR VIDEO CONTENT TO USERS
WHO SUBSCRIBE FOR A FEE TO GAIN ACCESS TO THE SERVICE. [LISTEN.COM]
 PERSON-TO-PERSON NETWORKING SERVICES -- ARE CONDUITS FOR THE
DISTRIBUTION OF USER-SUBMITTED INFORMATION, SUCH AS INDIVIDUALS
SEARCHING FOR FRIENDS/RELATIVES/CLASSMATES ETC. [CLASSMATES,
FACEBOOK, TWITTER]
 TRUST SERVICES -- COME IN THE FORM OF MEMBERSHIP ASSOCIATIONS THAT
ABIDE BY AN EXPLICIT CODE OF CONDUCT, AND IN WHICH MEMBERS PAY A
SUBSCRIPTION FEE. [TRUSTEE]
 INTERNET SERVICES PROVIDERS -- OFFER NETWORK CONNECTIVITY AND
RELATED SERVICES ON A MONTHLY SUBSCRIPTION. [AMERICA ONLINE]
9.Utility Model
The utility or "on-demand" model is based on metering
usage, or a "pay as you go" approach. Unlike subscriber
services, metered services are based on actual usage rates.
Traditionally, metering has been used for essential services
(e.g., electricity water, long-distance telephone services).
Internet service providers (ISPs) in some parts of the world
operate as utilities, charging customers for connection
minutes, as opposed to the subscriber model common in the
U.S.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 METERED USAGE: MEASURES AND BILLS USERS BASED ON ACTUAL USAGE OF A SERVICE.
 METERED SUBSCRIPTIONS: ALLOW SUBSCRIBERS TO PURCHASE ACCESS TO CONTENT IN METERED
PORTIONS (E.G., NUMBERS OF PAGES VIEWED).
 THE USERS ARE CHARGED A PERIODIC -- DAILY, MONTHLY OR ANNUAL -- FEE TO SUBSCRIBE TO A
SERVICE. IT IS NOT UNCOMMON FOR SITES TO COMBINE FREE CONTENT WITH "PREMIUM" (I.E.,
SUBSCRIBER- OR MEMBER-ONLY) CONTENT.
10. TRANSACTION FEE MODEL
 IN THIS MODEL BUSINESSES OFFER SERVICES FOR WHICH A FEE IS CHARGED. THE FEE IS BASED ON
THE NUMBER OR SIZE OF TRANSACTIONS THEY PROCESS. TRANSACTIONS CAN BE PERSONALISED
AND EXECUTED MUCH CHEAPER THAN TRADITIONAL TRANSACTION SERVICE PROVIDERS.
 E.G. ANY TICKETING WEBSITE, WHERE TRADITIONALLY, THEY WERE PAID A COMMISSION FOR
EVERY TICKET SOLD. WITH MORE LOW COST FLIGHTS BEING OFFERED COMMISSIONS IN MANY
CASES HAVE DISAPPEARED. AS A RESULT, MANY TRAVEL AGENTS NOW CHARGE A FLAT FEE FOR
PROCESSING A TICKET ON AN AIRLINE THAT HAS REDUCED OR ELIMINATED THE FEES IT PAYS TO
TRAVEL AGENTS.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
11. SALES REVENUE MODEL
 THIS MODEL DESCRIBES HOW THE FIRM WILL EARN REVENUE, GENERATE PROFITS,
AND PRODUCE A SUPERIOR RETURN ON INVESTED CAPITAL. MAJOR TYPES ARE:
 ADVERTISING REVENUE MODEL
 SUBSCRIPTION REVENUE MODEL
 TRANSACTION FEE REVENUE MODEL
 SALES REVENUE MODEL
 AFFILIATE REVENUE MODEL

 THE REVENUE FROM SALES IS MOST EASILY ASSOCIATED WITH ONLINE RETAIL
BUSINESSES. ANY SITE THAT IS ABLE TO BUILD A BRAND IS CAPABLE OF BUILDING
SALES FROM MERCHANDISING. THE GOOGLE COMPANY OFFER QUITE A RANGE OF
MERCHANDISE, AND THE REVENUE FROM THE SALES OF THOSE PRODUCTS IS TOO
HIGH.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
ADVANTAGES/BENEFITS OF E-COMMERCE
 THE INVENTION OF FASTER INTERNET CONNECTIVITY AND POWERFUL ONLINE TOOLS HAS RESULTED IN A
NEW COMMERCE ARENA – ECOMMERCE. ECOMMERCE OFFERED MANY ADVANTAGES TO COMPANIES AND
CUSTOMERS BUT IT ALSO CAUSED MANY PROBLEMS. E-COMMERCE ENORMOUS POTENTIAL BENEFITS TO
ORGANIZATIONS, INDIVIDUALS AND SOCIETY, CONSIDERING;
 THE GLOBAL NATURE OF THE TECHNOLOGY.
 THE OPPORTUNITY TO REACH MILLIONS OF PEOPLE
 ITS INTERACTIVE NATURE
 THE VARIETY OF POSSIBILITIES FOR ITS USE
 THE RESOURCEFULNESS AND RAPID GROWTH OF ITS SUPPORTING INFRASTRUCTURE (ESPECIALLY THE WEB)

ORGANIZATIONAL BENEFITS
 GLOBAL REACH: CAN EASILY AND QUICKLY LOCATE THE BEST SUPPLIERS, MORE CUSTOMERS AND MORE
SUITABLE BUSINESS PARTNERS. I.E. BUY CHEAPER AND SELL MORE.
 FASTER BUYING/SELLING PROCEDURE, AS WELL AS EASY TO FIND PRODUCTS.
 COST REDUCTION: EC DECREASES THE COST OF CREATING, PROCESSING, DISTRIBUTION, STORING AND
RETRIEVING PAPER-BASED INFORMATION.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
SUPPLY CHAIN IMPROVEMENT: SUPPLY CHAIN INEFFICIENCIES CAN BE MINIMIZED E.G. INVENTORY AND
DELIVER DELAYS
EXTENDED HOURS: 24/7/365
CUSTOMIZATION: PULL-TYPE PRODUCTION (BUILD-TO-ORDER)
NEW BUSINESS MODELS: TENDERING (REVERSE AUCTION), NAME-YOUR-OWN-PRICE MODEL, AFFILIATE
MARKETING, VIRAL MARKETING ETC.
VENDORS’ SPECIALIZATION: EC ENABLES HIGH DEGREE OF SPECIALIZATION
LOWER COMMUNICATION COST: EC LOWERS TELECOMMUNICATIONS COST.
EFFICIENT PROCUREMENT: EC CAN REDUCE ADMINISTRATIVE COST, PURCHASING PRICES, AND
REDUCING CYCLE TIME.
IMPROVED CUSTOMER RELATIONS: EC ENABLE CLOSE CUSTOMER RELATIONS
EASE OF BUSINESS: EASY TO START AND MANAGE A BUSINESS.
UP-TO-DATE COMPANY MATERIAL: EC ENABLES COMPANY INFORMATION TO BE UPDATED BY THE
MINUTE
NO CITY BUSINESS PERMITS AND FEES
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
CONSUMER BENEFITS
 UBIQUITY: EC ALLOWS SHOPPING 24/7/365 FROM ALMOST ANY LOCATION WITHOUT MOVING AROUND
PHYSICALLY.
 MORE PRODUCTS AND SERVICES: CUSTOMERS CAN EASILY SELECT WIDE RANGE OF PRODUCTS/SERVICES
FROM DIFFERENT/MULTIPLE SUPPLIERS.
 CHEAPER PRODUCTS AND SERVICES: EC PROVIDES PRICE COMPETITIVENESS FOR GOODS AND SERVICES.
 INFORMATION AVAILABILITY: RELEVANT AND DETAILED INFORMATION IN SECONDS
 PARTICIPATION IN AUCTIONS: VIRTUAL AUCTIONS
 ELECTRONIC COMMUNITIES: CONSUMERS CAN INTERACT WITH OTHER CONSUMERS
 GET IT YOU WAY: CUSTOMIZATION AND PERSONALIZATION OF PRODUCTS AND SERVICES
 NO SALES TAX: MOST ONLINE SALES ARE TAX FREE

SOCIAL BENEFITS
 TELECOMMUTING: MORE PEOPLE WORK AND SHOP AT HOME.
 HIGHER STANDARD OF LIVING: COMPETITIVE PRICES ALLOW LOWER INCOME EARNERS TO SHOP MORE.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 HOPE FOR THE POOR: GREAT OPPORTUNITY FOR THE POOR TO SELL, BUY AND LEARN NEW SKILLS.
 AVAILABILITY OF PUBLIC SERVICES: HEALTH CARE, EDUCATION AND DISTRIBUTION OF
GOVERNMENT SOCIAL SERVICES CAN BE DONE AT A REDUCE COST TO A LARGE NUMBER OF PEOPLE.
DISADVANTAGES/LIMITATIONS OF E-COMMERCE
THE DISADVANTAGES OF E-COMMERCE CAN BE DIVIDED IN 3 CATEGORIES:
1. GENERAL LIMITATIONS: THESE DEPEND ON GENERAL HUMAN NATURE OR SOCIAL/COMMUNITY/ COUNTRY
RELATED RESTRICTIONS.
2. TECHNIAL LIMITATIONS: THESE MAINLY OR DEPEND DIRECTLY ON TECHNOLOGY OR TECHNOLOGICAL
INFRASTRUCTURE/USAGE.
3. NON-TECHNICAL LIMITATIONS: THESE ARE ESSENTIALLY GENERAL IN NATURE BUT THE REASON HAS
TECHNICAL DEPENDENCE.

GENERAL LIMITATIONS
 SHIPPING CHARGES & DELIVERY
 LACK OF CONFIDENCE IN PERSONAL INFORMATION TRANSFER ONLINE.
 LACK OF TRUST IN PAPERLESS, FACELESS TRANSACTIONS
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 LOSS OF TRADITIONAL SHOPPING EXPERIENCE & THE INSTANT GRATIFICATION THAT MANY REALLY
ENJOY.
 ANY ONE, GOOD OR BAD, CAN EASILY START A BUSINESS. AND THERE ARE MANY BAD SITES WHICH
EAT UP CUSTOMERS’ MONEY.
 THERE IS NO GUARANTEE OF PRODUCT QUALITY.
 MANY ARE STILL TO COMPUTER-ILLITERATE TO TAKE ADVANTAGE OF THIS AVENUE OF COMMERCE.
 AS THERE IS MINIMUM CHANCE OF DIRECT CUSTOMER TO COMPANY INTERACTIONS, CUSTOMER
LOYALTY IS ALWAYS ON A CHECK.

TECHNICAL LIMITATIONS
 LACK OF UNIVERSALLY ACCEPTED STANDARDS FOR QUALITY, SECURITY, AND RELIABILITY.
 TELECOMMUNICATION BANDWIDTH IS INSUFFICIENT (MOSTLY FOR M-COMMERCE).
 SOFTWARE DEVELOPMENT TOOLS ARE STILL EVOLVING.
 DIFFICULTIES IN INTEGRATING THE INTERNET AND EC SOFTWARE APPLICATIONS AND
DATABASES.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 SPECIAL WEB SERVERS ARE NEEDED IN ADDITION TO THE NETWORK SERVERS (ADDED COST).
 INTERNET ACCESSIBILITY IS STILL EXPENSIVE AND/ OR INCONVENIENT.
 ORDER OF FULFILLMENT OF LARGE-SCALE B2C REQUIRES SPECIAL AUTOMATED WAREHOUSES.
 MECHANICAL FAILURES CAN CAUSE UNPREDICTABLE EFFECTS ON THE TOTAL PROCESSES.
NON-TECHNICAL LIMITATIONS
 SECURITY AND PRIVACY CONCERNS DETER SOME CUSTOMER FROM BUYING. THERE ARE MANY
HACKERS WHO LOOK FOR OPPORTUNITIES, AND THUS AN ECOMMERCE SITE, SERVICE, PAYMENT
GATEWAYS; ALL ARE ALWAYS PRONE TO ATTACK.
 MANY LEGAL AND PUBLIC POLICY ISSUES, INCLUDING TAXATIONS, REMAIN UNRESOLVED.
 NATIONAL AND INTERNATIONAL GOVERNMENT REGULATIONS SOMETIMES GET IN THE WAY.
 EASE OF FRAUDULENT RETAILERS & SITES.
 DIFFICULTY IN MEASURING SOME BENEFITS IN EC. (E.G. ADVERTISING,) LACK OF MATURED
MEASUREMENT METHODOLOGY
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 SOME CUSTOMERS LIKE TO TOUCH AND FEEL THE PRODUCT.
 ADAMANT TO CHANGE FROM PHYSICAL TO VIRTUAL STORE.
 INSUFFICIENT NUMBER (CRITICAL MASS) OF SELLERS AND BUYERS (SOME CASES) NEEDED TO
MAKE PROFIT
 INCREASING NUMBER OF FRAUD ON THE NET
 DIFFICULTY TO OBTAIN VENTURE CAPITAL DUE TO THE DOT-COM DISASTER
M-COMMERCE
 M-COMMERCE (MOBILE COMMERCE), ESSENTIALLY MEANS, AS THE BUYING AND SELLING OF
GOODS AND SERVICES THROUGH WIRELESS HANDHELD DEVICES SUCH AS CELLULAR
TELEPHONE, PERSONAL DIGITAL ASSISTANTS (PDAS) OR HANDHELDS AND SMARTPHONES ETC..
 THE PHRASE MOBILE COMMERCE WAS ORIGINALLY COINED IN 1997 BY KEVIN DUFFEY AT THE
LAUNCH OF THE GLOBAL MOBILE COMMERCE FORUM, TO MEAN "THE DELIVERY OF
ELECTRONIC COMMERCE CAPABILITIES DIRECTLY INTO THE CONSUMER’S HAND, ANYWHERE,
VIA WIRELESS TECHNOLOGY.”
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 IT BEGAN WITH THE USE OF WIRELESS POS (POINT OF SALE) SWIPE TERMINALS AND HAS SINCE
THEN MADE ITS WAY INTO CELLULAR PHONES, PDA'S (PERSONAL DIGITAL ASSISTANTS) AND NOW
SMARTPHONES. THE FIRST ENABLING M-COMMERCE TECHNOLOGIES WERE PRESENTED
THROUGH WIRELESS APPLICATION PROTOCOL (WAP) AND I-MODE MOBILE INTERNET SERVICE.
WAP BUILDS ON DIGITAL PHONE TECHNOLOGY. IT FIRST EMERGED ON 2G PHONE TECHNOLOGY
THAT ALLOWED USERS TO BROWSE THE INTERNET. THIS TECHNOLOGY CEMENTED THE WAY OF
M-COMMERCE, WHICH HAS STRONGLY DEVELOPED ON 3G PHONE TECHNOLOGY. NOKIA HAS
FIRST INTRODUCED M-COMMERCE APPLICATION SOFTWARE NOKIA TOOLKIT VERSION 4.0.
 THE FUTURE OF M-COMMERCE SEEMS EXTREMELY BRIGHT BECAUSE SEVERAL EXPERIMENTS
ARE GOING ON TO INTRODUCE THE UPGRADED VERSION OF MOBILE LIKELY TO EMERGED WITH
THE EVOLUTION OF 4G MOBILE TECHNOLOGY.
AREAS / USES OF M-COMMERCE
 IN THE CURRENT COMMERCE INDUSTRY, MOBILE COMMERCE OR M-COMMERCE HAS BEEN
ENTERED IN FINANCE, SERVICES, RETAILS, TELECOMMUNICATION AND INFORMATION
TECHNOLOGY SERVICES. IN THESE SECTORS, M-COMMERCE IS NOT ONLY BEING WIDELY
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
FINANCE SECTOR
 MOBILE COMMERCE WORKS VASTLY IN FINANCE SECTOR INCLUDING ALL BIG AND MAJOR FINANCIAL
INSTITUTES, BANKS, STOCK-MARKET AND SHARE BROKERS. WHENEVER ANY USER NEEDS MONEY OR
WANTS ANY SORT OF BANKING AND FINANCE RELATED SERVICES, HE/SHE CAN ACCESS THE SERVICES
OR REGISTER SERVICES VIA VOICE CALLING OR VIA SHORT MESSAGE SERVICES (SMS) SERVICES. WAP
BASED MOBILE HANDSETS ALLOW THE USER TO ACCESS THE OFFICIAL WEBSITE OF THE INSTITUTE.
 USER CAN TRANSACT MONEY OR TRANSFER MONEY, OR PAY THE BILL FROM ITS BANK ACCOUNT
USING MOBILE COMMERCE FACILITIES. BANKS ALSO PROVIDE ROUND THE CLOCK CUSTOMER CARE
SERVICES, WHICH CAN BE USED ANY TIME THROUGH VOICE CALLING. SOME CUSTOMER CARE
SERVICES ARE ALSO PROVIDES NON-VOICE SERVICES ON MOBILE THAT IS KNOWN AS INSTA-ALERT
FACILITY.
 WHILE IN THE STOCK MARKET, THE USER CAN ACCESS THE STOCK MARKET QUOTES AND GET IN LIVE
TOUCH WITH CURRENT TRADING STATUS ON ITS MOBILE IN TWO FORMS EITHER VOICE (CUSTOMER
ASSISTANCE) OR NON-VOICE (SMS ALERTS) OR BOTH. THE SHARE BROKER SENDS MARKET TRENDS
AND TIPS OF TRADING ON THEIR CLIENTS' MOBILE. ALSO BROKER CAN SUGGEST THE APPROPRIATE
STOCK FOR INTRA-DAY TRADING TO THEIR USERS.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
TELECOMMUNICATION SECTOR
 MOBILE HAS PLAYED A GIANT ROLE IN COMMUNICATION TECHNOLOGY THROUGH ITS
VERSATILITY AND SUPERIORITY. THE UBIQUITY AND EASY USAGE HAS FURTHER MADE IT
EXTREMELY POPULAR ACROSS THE GLOBE. IT HAS ALREADY SURPASSED THE FIXED PHONE IN
THE WORLD. SOFTWARE PLATFORM IS ESSENTIAL FOR OPERATING ANY MOBILE AND THIS TOOL
HAS REVOLUTIONIZED THE COMMUNICATION WORLD BECAUSE OF ITS FUNCTIONING AS A
SMALL COMPUTER.
 THE BOOMING POPULARITY HAS FORCED THE CORPORATE WORLD TO DEVELOP A NEW
COMMERCE PLATFORM THAT CAN REACH TO MASSES. MOBILE COMMERCE HAS ATTRACTED
MASSIVE TRAFFIC BECAUSE OF ITS UNIQUE CHARACTERISTICS. THE USER CAN CHANGE THE
SERVICE OF ANY FINANCIAL INSTITUTE OR BANKS IF GETS BETTER PRODUCT AND SERVICE OR
USER IS UNSATISFIED WITH THE SERVICE OF THE SUBSCRIBING COMPANY. BESIDES THIS
SEVERAL BILLS CAN BE PAID USING MOBILE AND USER CAN ALSO CHECK THE AVAILABLE
BALANCE, THE STATUS OF CHEQUES AND THE STATUS OF REQUESTED PROCESSING AND
CUSTOMER CARE SUPPORT. SEVERAL DEALINGS CAN BE HANDLED THROUGH MOBILE PHONES.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
SERVICE / RETAIL SECTOR
 SERVICE AND RETAIL SECTORS ARE ALSO AMONG THE LEADING SECTORS, WHICH HAVE NURTURED MOST
FROM MOBILE COMMERCE. M-COMMERCE HAS PROVED A MAJOR BOON FOR THESE SECTORS. SEVERAL
BUSINESS DEALINGS NO MATTER HOW BIG OR SMALL ARE BEING FINALIZED ON THE MOBILE PHONE.
CUSTOMER WOULD BE ABLE TO BOOK THE ORDER, CAN HIRE CARRIER/COURIER SERVICES AND ABOVE ALL
COULD ALSO PAY THE DUES RELATED TO IT THROUGH MOBILE.
INFORMATION TECHNOLOGY SECTOR
 AFTER THE BURSTING OF DOTCOM BUBBLE, E-COMMERCE HAS GONE DOWNWARDS TO HELL. BUT THE
EVOLUTION OF MOBILE COMMERCE HAS AGAIN WORKED AS AMBROSIA FOR THEM. A SEPARATE SECTOR HAS
BEEN EVOLVED TO EXERCISE ON THIS FIELD FOR THE IT EXPERTS. THE WEBMASTERS HAVE SKILLFULLY
EXPLOITED THIS NEW AREA OF IT-ENABLED COMMERCE. IN THE IT FIELD, MOBILE COMMERCE HAS BEEN
USED MASSIVELY TO DELIVER FINANCIAL NEWS, STOCK UPDATES, SPORTS FIGURES AND TRAFFIC UPDATES
AND MANY MORE ONTO A SINGLE HANDHELD DEVICE ‘MOBILE'.
ELECTRONIC FUND TRANSFER (EFT)
 AN ELECTRONIC FUNDS TRANSFER (EFT) IS A TRANSACTION THAT TAKES PLACE OVER A COMPUTERIZED
NETWORK, EITHER AMONG ACCOUNTS AT THE SAME BANK OR TO DIFFERENT ACCOUNTS AT SEPARATE
FINANCIAL INSTITUTIONS.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
THE TERM COVERS A NUMBER OF DIFFERENT PAYMENT SYSTEMS, FOR EXAMPLE:
CARDHOLDER-INITIATED TRANSACTIONS, USING A PAYMENT CARD SUCH AS A CREDIT OR
DEBIT CARD
DIRECT DEPOSIT PAYMENT INITIATED BY THE PAYER
DIRECT DEBIT PAYMENTS FOR WHICH A BUSINESS DEBITS THE CONSUMER'S BANK
ACCOUNTS FOR PAYMENT FOR GOODS OR SERVICES
WIRE TRANSFER VIA AN INTERNATIONAL BANKING NETWORK SUCH AS SWIFT
ELECTRONIC BILL PAYMENT IN ONLINE BANKING, WHICH MAY BE DELIVERED BY EFT OR
PAPER CHECK
TRANSACTIONS INVOLVING STORED VALUE OF ELECTRONIC MONEY.
BECAUSE THE ELECTRONIC FUNDS PROCESS IS SIMPLIFIED AND ENTIRELY ELECTRONIC,
THE CYCLE OF TRANSFERRING AND PAYING MONEY IS MUCH FASTER. LET'S COMPARE
BOTH TRADITIONAL AND ELECTRONIC PROCESSES SIDE BY SIDE.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 WRITING A PAPER CHEQUE: THE STORE MANUALLY DEPOSITS THE CHEQUE AT THEIR BANK, AND THE BANK SENDS
THE CHEQUE TO A CLEARING HOUSE, OR AN ESTABLISHMENT WHERE CHEQUES AND BILLS ARE EXCHANGED. THE
CLEARING HOUSE SENDS THE CHEQUE TO THE CUSTOMER'S BANK TO BE POSTED. THIS IS AN OLDER PROCESS THAT
CONTAINS NO ELECTRONIC MONEY TRANSFER AND USUALLY TAKES AT LEAST 2-3 DAYS TO COMPLETE THE CYCLE.
EFT PROCESS
 WHEN WE USE THE CREDIT/DEBIT CARD AT A STORE, MONEY IS ELECTRONICALLY TRANSFERRED FROM OUR
ACCOUNT AND THEN IT IS SIMULTANEOUSLY DEPOSITED IN THE STORE ACCOUNT. THIS MAY INVOLVE AN AUTOMATED
CLEARING HOUSE OR SOMETIMES A CENTRAL ELECTRONIC PROCESSOR, WHICH COULD ADD A DAY TO PROCESS, BUT
IT IS STILL MUCH QUICKER.
 THE PROCESS FOR A CONSUMER TO SET UP ONLINE BILL PAY, DIRECT DEPOSIT, OR DIRECT DEBIT IS FAIRLY SIMPLE. IT
USUALLY INVOLVES PROVIDING DATA TO THE FINANCIAL INSTITUTIONS, INCLUDING YOUR BANK ROUTING AND
ACCOUNT NUMBERS, VENDOR ACCOUNT NUMBERS YOU WANT TO PAY AND DATES OF PAYMENTS. IT CAN USUALLY BE
DONE ONLINE OR BY FILLING OUT A SIMPLE FORM.
ADVANTAGES OF EFT
 IN THE AGE OF HIGH TECHNOLOGY CASH STRIVES TO ENDURE THE COMPETITION WITH ELECTRONIC MONEY,
BECAUSE MORE AND MORE PEOPLE PREFER TO HAVE VIRTUAL WALLETS. WE ALREADY PROVIDED YOU WITH THE
INFORMATION ON PARTICULAR PAYMENT SYSTEMS; IN THIS ARTICLE WE WILL DESCRIBE THE GENERAL
ADVANTAGES OF ELECTRONIC PAYMENT SYSTEM AND ITS DISADVANTAGES.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
 IT IS CLEAR, ELECTRONIC PAYMENT SYSTEMS HAVE A RANGE OF PROS IN COMPARISON TO
TRADITIONAL BANKING SERVICES:
1. TIME SAVING: MONEY TRANSFER BETWEEN VIRTUAL ACCOUNTS USUALLY TAKES A FEW
MINUTES, WHILE A WIRE TRANSFER OR A POSTAL ONE MAY TAKE SEVERAL DAYS. ALSO, YOU
WILL NOT WASTE YOUR TIME WAITING IN LINES AT A BANK OR POST OFFICE.
2. EXPENSE CONTROL: EVEN IF SOMEONE IS EAGER TO BRING HIS DISBURSEMENTS UNDER
CONTROL, IT IS NECESSARY TO BE PATIENT ENOUGH TO WRITE DOWN ALL THE PETTY
EXPENSES, WHICH OFTEN TAKES A LARGE PART OF THE TOTAL AMOUNT OF DISBURSEMENTS.
THE VIRTUAL ACCOUNT CONTAINS THE HISTORY OF ALL TRANSACTIONS INDICATING THE STORE
AND THE AMOUNT YOU SPENT. AND YOU CAN CHECK IT ANYTIME YOU WANT. THIS ADVANTAGE
OF ELECTRONIC PAYMENT SYSTEM IS PRETTY IMPORTANT IN THIS CASE.
3. REDUCED RISK OF LOSS AND THEFT: ONE CANNOT FORGET THE VIRTUAL WALLET
SOMEWHERE AND IT CANNOT BE TAKEN AWAY BY ROBBERS. ALTHOUGH IN CYBERSPACE THERE
ARE MANY SCAMMERS, IT IS DIFFICULT TO HACK INTO SOMEONE’S ACCOUNT IF PROPER
SECURITY MEASURES ARE IN PLACE.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
4. LOW COMMISSIONS: IF WE PAY FOR INTERNET SERVICE PROVIDER OR
MOBILE ACCOUNT REPLENISHMENT THROUGH THE UPT (UNATTENDED
PAYMENT TERMINAL), WE MAY ENCOUNTER HIGH FEES. AS FOR THE
ELECTRONIC PAYMENT SYSTEM: A FEE OF THIS KIND OF OPERATIONS
NORMALLY CONSISTS OF 1-3% OF THE TOTAL AMOUNT, AND THIS IS A
CONSIDERABLE ADVANTAGE.
5. USER-FRIENDLY: USUALLY EVERY SERVICE IS DESIGNED TO REACH THE
WIDEST POSSIBLE AUDIENCE, SO IT HAS THE INTUITIVELY UNDERSTANDABLE
USER INTERFACE. IN ADDITION, THERE IS ALWAYS THE OPPORTUNITY TO
SUBMIT A QUESTION TO A SUPPORT TEAM, WHICH OFTEN WORKS 24/7.
6. CONVENIENCE: ALL THE TRANSFERS CAN BE PERFORMED AT ANYTIME,
ANYWHERE. IT'S ENOUGH TO HAVE AN ACCESS TO THE INTERNET.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
DISADVANTAGES OF EFT
HAVING LOOKED AT THE ADVANTAGES OF EFT, IT IS NECESSARY TO MENTION ITS DRAWBACKS, WHICH CAN BE
MENTIONED AS FOLLOWS:
1. RESTRICTIONS: EACH PAYMENT SYSTEM HAS ITS LIMITS REGARDING THE MAXIMUM AMOUNT IN THE ACCOUNT,
THE NUMBER OF TRANSACTIONS PER DAY AND THE AMOUNT OF OUTPUT.
2. THE RISK OF BEING HACKED: IF PROPER CARE IS TAKEN THEN THE THREAT IS MINIMAL, IT CAN BE COMPARED
TO THE RISK OF SOMETHING LIKE A ROBBERY. THE WORSE SITUATION WHEN THE SYSTEM OF PROCESSING
COMPANY HAS BEEN BROKEN, BECAUSE IT LEADS TO THE LEAK OF PERSONAL DATA ON CARDS AND ITS OWNERS.
EVEN IF THE ELECTRONIC PAYMENT SYSTEM DOES NOT LAUNCH PLASTIC CARDS, IT CAN BE INVOLVED IN
SCANDALS REGARDING THE IDENTITY THEFT.
3. THE PROBLEM OF TRANSFERRING MONEY BETWEEN DIFFERENT PAYMENT SYSTEMS: USUALLY THE MAJORITY
OF ELECTRONIC PAYMENT SYSTEMS DO NOT COOPERATE WITH EACH OTHER. IN THIS CASE, WE NEED TO USE THE
SERVICES OF E-CURRENCY EXCHANGE, AND IT CAN BE TIME-CONSUMING IF WE STILL DO NOT HAVE A TRUSTED
SERVICE FOR THIS PURPOSE.
4. THE LACK OF ANONYMITY: THE INFORMATION ABOUT ALL THE TRANSACTIONS, INCLUDING THE AMOUNT, TIME
AND RECIPIENT ARE STORED IN THE DATABASE OF THE PAYMENT SYSTEM. AND IT MEANS THE INTELLIGENCE
AGENCY HAS AN ACCESS TO THIS INFORMATION. YOU SHOULD DECIDE WHETHER IT'S BAD OR GOOD.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE
5. THE NECESSITY OF INTERNET ACCESS: IF INTERNET CONNECTION FAILS, ONE CANNOT ACCESS THE
ONLINE ACCOUNT.
ELECTRONIC DATA INTERCHANGE (EDI)
 IT MEANS THE TRANSFER OF DATA BETWEEN DIFFERENT ENTITIES (USUALLY CORPORATE) USING
ELECTRONIC NETWORKS, SUCH AS VANS OR THE INTERNET. AS MORE AND MORE COMPANIES GET
CONNECTED TO THE INTERNET, EDI IS BECOMING INCREASINGLY IMPORTANT AS AN EASY MECHANISM
FOR COMPANIES TO BUY, SELL, AND TRADE INFORMATION. ANSI HAS APPROVED A SET OF EDI STANDARDS
KNOWN AS THE X12 STANDARDS. ELECTRONIC DATA INTERCHANGE HAS TRANSFORMED THE WAY
ENTERPRISES CONDUCT BUSINESS ACROSS THE GLOBE. IT REDUCES THE PAPERWORK AND FACILITATES
INSTANT DOCUMENT AVAILABILITY ANYTIME AND ANYWHERE ACROSS THE WORLD.
 CURRENTLY, EDI IS PREDOMINANTLY USED FOR APPLICATIONS SUCH AS INVENTORY AND LOGISTICS
MANAGEMENT, TRANSPORT AND DISTRIBUTION, ADMINISTRATION, AND CASH MANAGEMENT. EDI-BASED
SOLUTIONS REQUIRE MINIMAL HUMAN INTERVENTION AS MOST PROCESSES ARE AUTOMATED. WITHOUT
EDI TECHNOLOGY, EXCHANGING DOCUMENTS, EVEN ELECTRONIC ONES, WOULD BE A MANUAL TASK,
THANKS TO INCOMPATIBILITIES IN APPLICATION AND DATABASE FORMATS. TO OVERCOME THESE
PROBLEMS EDI SPECIFIES A STANDARD FORMAT FOR EACH TYPE OF BUSINESS DOCUMENT. THESE EDI
STANDARDS ARE DEVELOPED UNDER THE AUSPICES OF STANDARDS DEVELOPMENT ORGANIZATIONS (E.G.
 3.5 EMERGENCE OF E-COMMERCE & M-
COMMERCE

FUTURE OF EDI
 ELECTRONIC COMMERCE ON THE INTERNET IS A MULTI-BILLION-DOLLAR INDUSTRY. THIS WILL ONLY
EXPAND AS BANDWIDTH COSTS DROP. X12 STANDARDS HAVE INCREASED EDI’S COMPATIBILITY WITH
MULTIPLE INTERNET PROTOCOLS. DO THE MATH AND IT BECOMES APPARENT THAT EDI IS POISED TO PLAY
A DOMINANT ROLE IN ONLINE COMMERCE OF THE B2B VARIETY, ESPECIALLY IN THE CASE OF LARGE
ENTERPRISES.
 REVIEW QUESTIONS
Q.1. ANSWER THE FOLLOWING.
1. STATE THE DIFFERENCE BETWEEN E-COMMERCE AND E-BUSINESS.
2. DEFINE E-COMMERCE EXPLAIN THE FEATURES OF E-COMMERCE & PROVIDE EXAMPLES INVOLVING E-
COMMERCE?
3. WRITE A NOTE ON ADVANTAGES/DISADVANTAGES OF E-COMMERCE.
4. NAME AND EXPLAIN DIFFERENT TYPES OF E-COMMERCE & EXPLAIN THE OPERATION OF E-COMMERCE?
5. WHAT IS A BUSINESS MODEL & EXPLAIN DIFFERENT TYPE OF BUSINESS MODELS?
6. EXPLAIN THE ADVERTISING MODEL IN BRIEF & DESCRIBE TYPES OF E-COMMERCE BASED ON THE
PEOPLE INVOLVED?
7. WHAT IS DOMAIN NAME & CLASSIFY E-COMMERCE BY NATURE OF MARKET RELATIONSHIP?
8. EXPLAIN B2B & C2C IN DETAIL.
9. EXPLAIN UNIVERSE RESOURCE LOCATOR (URL) & EXPLAIN CRITERIA CONSIDERED WHILE DESIGNING A
BUSINESS MODEL?
10. WHAT ARE THE LIMITATIONS OF E-COMMERCE?
 REVIEW QUESTIONS
11. WRITE A NOTE ON FOLLOWING BUSINESS MODELS IN E-COMMERCE?
A. REVENUE MODEL.
B. ADVERTISING MODEL.
C. SUBSCRIPTION MODEL.
D. AFFILIATE MODEL.
E. TRANSACTION FEE MODEL.
F. SALES REVENUE MODEL.

12. WRITE A NOTE ON FOLLOWING B2C MODELS?

A. CONTENT PROVIDER.
B. TRANSACTION BROKER.
C. E-TAILER.
D. MARKET CREATOR.
E. SERVICE PROVIDER.
F. COMMUNITY PROVIDER.

13. WHAT ARE THE ADVANTAGES/DISADVANTAGES OF E-COMMERCE?

14. EXPLAIN M-COMMERCE & ITS USAGE IN VARIOUS SECTORS.
15. DISCUSS EFT AND THE PROCESS?
16. WHAT ARE THE ADVANTAGES/DISADVANTAGES OF EFT?
17. DISCUSS