Wide Combination of E-Commerce Book

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Ecommerce :Definition: It is the process of purchasing and selling goods and services
over electronic system such as Internet.
Or It is a form of commerce in which computers and Internet are used.
ELECTRONIC COMMERCE FRAME WORK:

E –commerce applications will be built on the existing technology infrastructure -
myriad of computers , communications networks and communication software that can
form nascent Information Superhighway.
The various building blocks in the infrastructure are:
 Common business services for facilities the buying and selling process
 Messaging and information distribution , as means of sending and
retrieving information.
 Multimedia content and network publishing for creating a product and a
means to communicate about it.
 The information superhighway – the very foundation- for providing the
highway System along which all e-commerce must travel.
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The two pillers supporting all e commerce applications and infrastructure are
just as indispensable:
 Public policy to govern such issues as universal access , privacy and

information pricing.
 Technical standards to dictate the nature of information publishing , user
Interfaces and transport in the interest of compatibility across the entire
network.
 The I-way must be mesh of interconnected data highway of many forms
Like telephone wires, cable TVs , radio based wireless- cellular and satellite
and the nature of vehicular traffic is important .
 The information and multimedia content determines the what type of

vehicle is needed.
 I –way messaging software will be forma like email , EDI or point to point
file transfers.
 In case of vehicle traffic , public issues concern pollution, consumer
production from fraud , environmental impact and taxation.
 In case of information traffic public policy issues deal with the cost of
accessing information ,regulation to protect consumers from fraud and to
protect their right to privacy.
 In this case information access from any type of consumer chosen devices
like PCS, portable hand held devises , ands operating systems.
1.2 THE ANATOMY OF ECOMMERCE APPLICATIONS:
The various applications are :

1.Multimedia content for e-commerce applications
2.Multi media storage servers and e-commerce applications
3. client server architecture for electronic commerce
4. Video servers and electronic commerce
5.Information delivery/ transport and Ecommerce applications
a) Consumer access devices
1.Multimedia content for e-commerce applications

Multimedia is the use of digital data in more than one format such as
combination of text , audio, video, graphics in computer file. Multimedia is
associated with the hardware convergence taking place in the communications ,
computer and cable industry as the next generation digital.

Fig
Access to multimedia content depends on the hardware and the software applications
that run on it. The success of ecommerce applications also depends on the variety and
innovativeness of multimedia content and packaging. It include televisions productions
, traditional print productions , software and information services.
2.Multi media storage servers and e-commerce applications

Ecommerce uses robust servers to store and distribute large amount of digital
content to consumers and these servers capable of handling various contents
including books . newspapers , movies ,games and x-ray images.
Digital technology mass storage which is feasible and less cost.
3. client server architecture for electronic commerce
In this model allows the client to interact with the server through a request reply
sequence governed by a paradigm called “message passing”.
4. Video servers and electronic commerce : Video servers are important link
between the content providers (entertainment/media) and transport
providers(telcos/videos/cable operators). The video servers tackle the
simultaneous overlapping “ supply problem that arises when providing on-
demand services to large numbers of homes. All video servers need not be
hardware based.
5.Information delivery/ transport and Ecommerce applications
Transport providers are telecommunications , cable, wireless industries,
computer networks including commercial networks like Compuserve and
public network like Internet.
The various transport routes:
Information transport providers Information delivery methods
1.Telecommunications long-distances , local lines
2. Cable television coaxial cable, fiber optic
3.wireless communications cellular &radio network, paging
Systems
4. Computer based online companies internet , commercial online
service providers
computer based online companies: these providers are dial up linkage of lower
bandwidth when compared to telecom and cable high ways. Various providers like
Prodigy, compuServe .
Consumer access devices: These are devices which can provide access to information
and they are videophones, PCs, PDAs and television capable of handling two way
communication , cellular phones , mobile and portable computers.
Information consumers Access Devices

1.Computer with audio &video PCS/ LAPTOPS, CDROMS
Capabilities
2. Telephone devices video phone
3.consumer electronics television+ set-top box
4.PDAs voice driven computing, software agents
1.3 ELECTRONIC COMMERCE CONSUMER APPLICATIONS:

Consumers desires are difficult to predict, pinpoint in electronic markets whose shape,
structure and population are still in the early stages. Need envisioned include
entertainment on demand ,video on demand, games on demand, home shopping
networks .
Consumer applications and social interactions:
TVs before 1945 no one have in USA. Bt 1960 86% house hold did using it and in
1940 only 40% people used telephone after that in 1980 95-98% of people are using
now.
Social revolutions are bearing on the ecommerce applications example radio trends
and television talk shows can be seen in the online news groups.
Social interactions are promoted by introduction of 800 tool free service in 1968. by
1993 AT&T s 800s number business uses 40% of total call made- some 12billion 800
calls. The four major 900 services are fax back , interactive, recorded –
sports score, financial services.
What are consumers willing to spend ?
The study of economist noted that consumers already spent 30% for advertising costs
To pay for free television. Network operators could target consumers with advertising
and privacy issues not easily resolved. consumers will be prefer to spend less cost for
their business rather then spending more.
Delivering products to customers :
Ecommerce should be distributed for example Blockbuster video its traditional
distribution through stores could become obsolete is actively exploring electronic media
as a distribution channel ,blockbuster knows what consumer want in entertainment .
Blockbuster research shows that the typical consumer:

1.spends $12 month on home video expenditures 2.wants to go video shop and select
3. is on a limited budget 4. has time to kill.
Consumer Research and Electronic commerce

Evaluating a customer preference is uncertainty in electronic commerce . example
Interaction television- survey by Chilton research services and CBS News suggest
that some degree of consumer and willingness to pay less than $20 a month for a
selection of interactive television services. A poll of 1000 adults found 63 % interested
interactive television service of that 685% use news channel .
A CNN consumer opinion about interactive TV yields the following :
* 46% “willing to pay personalized news summaries on interactive television
* 39% want to video phone calls
* 63% pay for movies on demand
*41% that it will be confusing to use.
1.4 ELECTRONIC COMMERCE ORGANIZATION APPLICATION:

Changing Business Environment:
The traditional business environment is changing rapidly as customers and business
seek flexibility to change trading partners , carriers and networks at will .The company
can increase business communications , to help expand market share and to
maintain long term visibility in to days business environment. The I –way will
allow business to exchange information among constantly changing sets of customers and
suppliers and researchers in government and academia on a global.
Inter-networking whether internally or externally with customers and business partners
can be useful tool to time based competitive business. Internetworking via public
network provide a path ways to conduct ecommerce between trading partners ,support
collaboration with partners who can apply needed capabilities and stay close to the
customer.
In general firms utilize consumer and market research to form the assumptions that
shape its strategy , dictate its decisions about what to do and what not do.
The reaction to numerous business pressure are given in the below figure:
Marketing and Electronic Commerce :

Electronic commerce is forcing companies to rethink the existing way of doing target
marketing and relationship marketing and event marketing(setting up virtual booth
where interested people come and visit.
Interactive marketing performed via interactive multimedia catalogs that give same look
and feel as a shopping channel. An CUC is a shopping service that maintains detailed
information about 250,000 products and it is services by dialing 800 number and
speaking to a live person we can consult computer database.
Inventory Management and organizational applications:

The adoption of computerized “paperless” operations to reduce trading costs and
facilitate the new business processes. In the manufacturing industry they are known as
just-in-time inventory systems , in retail industry they are quick response programs and
in transportation industry they are consignment tracking systems.
Just –in time manufacturing :It is viewed as integrated management systems

consisting of a number of different management practices dependent on the
characteristics of specific plants.
The following management practices associated with JIT systems are :
Focused factory , reduced setup times, group technology , total productive maintenance
,uniform workload . JIT purchasing, total quality control. To achieve JIT savings
many large corporations have installed private communication networks.
Quick Response Retailing :

Quick response is a version of JIT purchasing tailored for retailing. To reduce the risk
of out of stock retailers are implementing the QR systems. It provides for a flexible
response to product ordering and lowers costly inventory levels. QR retailing focuses
on market responsiveness while maintaining low level of stocks.
It creates a closed loop encompassing the retailer , vendor , consumer chain, and as
consumers make purchases the vendor automatically orders new deliveries from the
retailers through its computer network. figure below gives the various steps of QR
chain.
Supply Chain management :

Supply chain management (SCM) is also called ‘extending” which means integrating
the internal and external partners on the supply and process chain to get raw materials
to the manufacturer and finished products to the consumer. Most of the companies fails
because lack of integration due to fragmented supply chain management.
Supply Chain management ( SCM ) have various functions:
1.Supply chain management: The goal is to reduce the num the number of suppliers
and get them to become partners in business in a win / win relationship.
2.Invetory management : Its goal is to shorten the order-ship-bill cycle.
3. Distribution management: Its goal is to move documents related to shipping.
4.Payment management : The goal is to link the company and the suppliers and
distributors so that the payment can be sent and received electronically.
5. Financial management : The goal is to enable global companies to mange their
Money in various foreign exchange accounts.
6. Sales for productivity : its goal is to improve the communication and flow of
information among the sales , customer and production functions.
The business process models are divided into two types:

1.Merchantile’s model from the Consumer perceptive
2.Merchantile’s model from the Merchantile’s perceptive
1.Merchantile’s model from the consumer perceptive :

This model consists of seven different activities that can be grouped into Three different
Phases:.
1. Pre purchase phase
2. Purchase consummation phase
3. Post purchase interaction
1. pre purchase phase : It includes search and discovery for a set of products in the
larger information space capable of meeting customer requirements and product
selection from the smaller set of products based on attribute comparison.
In general consumer are categorized into 3 types:

a) Impulse buyers - who purchase products quickly
b) Patient buyers – who purchase products after making some comparisons
c) Analytical buyers- who do substantial research before making the decision to
purchase products or services. In fact marketing researchers have isolated several
types of purchasing.
 Specifically planned purchases : The need was recognized on entering the
store and the shopper bought the exact item planned.
 Generally planned purchases: The need was recognized but the shopper
decided in-store on the actual manufacturer of the item to satisfy the need.
 Remainder purchases: The shopper was reminded of the need by some store
influence.
 Entirely unplanned purchases: The need was not recognized entering the store.
The Consumer Information Search Process :

Information search is defined as the degree of care , perception and effort directed
toward data related to the decision problem. It is of two types.
1.The organizational search process:
It can be viewed as process through which an organization adapts to change in its
external environment as new suppliers, new products , new services.
In general it is an activity designed to balance the cost of acquiring information with
the benefits of improved final decisions . This process can be determined in part
by market characteristics.
2.consumer search: need to examine how particular aspects of the buyers
situation and the shopping experience that is being sought affect the search process.
2. purchase consummation phase :

- It includes mercantile protocols that specify the flow of information and documents
associated with purchasing and negotiation with merchants for suitable terms like
price , availability and delivery dates.
-The buyer and seller must interact to provide mercantile transaction.
-Mercantile transaction is the exchange of information between the buyer and seller
followed by necessary payment.
It requires the following transactions.
a. Buyer contacts to purchase product or service and it performed through online -
www, email ,
b. Vendor states price
c. Buyer and vendor may or may not engage in negotiation.
d. if satisfied buyer authorizes payment to the vendor
e. vendor contacts his her billing service to verify it.
Merchantile’s process using Digital Cash:
It includes the following protocol.
a. Buyer obtains anonymous electronic cash from the issuing bank.
b. Buyer contacts the seller to purchase or buy a product.
c. Seller states the price.
d. Buyer sends the e-cash to the seller

e. Seller contacts his bank to verify the validity of the e-cash.
f. Bank gives positive signal to the seller after ensuring authentication
g. Seller delivers the product to the buyer.
h. Customer gets the product delivery.
3. Post Purchase Interaction Phase :
It includes Customer service and support to address customer complaints, products
returns and product defects.
In this we have three issues:
1.Inventory issues:
2.Database access and Compatibility issues
3.Customer service issues.
1.Inventory issues:
To serve a customer properly company should inform the right way when an item
is ordered and sold out.
2.Database access and Compatibility issues:
The customer can access required data from the large amount of information
managed by the vendors. It is supported to the customer in the information super
highway.
3.Customer service issues:
Here customer questions about the product and other details in their mind regarding
to product can be resolved.
2.Merchantile’s model from the Merchantile’s perceptive :
It consists of eight different activities that are grouped into three phases:
1.Presale phase
2. Product service / delivery
3. Post sale interaction phase
1.Presale phase :
It consists of two activities namely
a) Customer enquiry and order planning and order generation
b) Cost estimation and price of product services
a) Customer enquiry and order planning and order generation:

 Once the merchant receives the order enquiry they need to plan the products by
sales forecast with the help of people close the customer either in the sales force
or in the marketing group at company level and at the same time a group of in
manufacturing function details.
 A capacity plan that specify how much money spend , how many people will be
hired and how inventory will be created.
 Order planning leads to order generation and orders are generated by different
ways like sales force broad cast, sends emails to customers , create www web
pages etc.
b) Cost estimation and price of product services :

 pricing is the bridge between the customer needs and company capabilities.
 Company does not understand how to execute order based pricing in online
markets.
 Pricing at individual order levels depends on understanding the value to the
customer. Although order based pricing is difficult to work that requires
meticulous thinking and deliberate execution.
2. Product service / delivery :

It consists of four activities:
a)order receipt and entry
b)order selection and prioritization
c) order scheduling
d)order full fillness and distribution
a)order receipt and entry :

 After acceptable price code the customer enters the order receipt and entry
phase of order management cycle(OMC).
 This was under the purview of departments title customer service , order entry
And the inside sales desk. These departments are staffed by customer
service representatives.
b)order selection and prioritization :
 The customer service representative are responsible for choosing which
orders to accept and which orders to decline. In fact all customer orders are
created equal but some are simply better than others.
 The desirable orders are those that fit the capabilities and offer healthy
company put efforts into order selection
 link it their business strategy to make more money regardless of production
capacity. company gain by order prioritization.
c) order scheduling :
 In this phase , the prioritized orders get started into actual production or
Operation sequence. It is difficult because various functional departments like
marketing , sales , customer service and production.
 Due to this differentiation they may have conflicting goals. compensation
systems and communication between the systems is not existent.
Example : The customer service reporting to sales department they may
separated from physically( long distances) or production scheduling which
Reports to manufacturing unit which is far away.
d)order full fillness and distribution :

 Here actual service /product is made where details vary from industry to
industry And it involves order fulfillment that requires multiple functions in
multiple locations.
 The different parts of the order may be created in different manufacturing
units and are merged at another site.
3.Post sale interaction phase :

It consists of two different activities namely:
a. Order billing and account payment management
b. Customer services and support
a. Order billing and account payment management:

 After the product distribution , billing is handled by the finance staff who
view their job is getting the bill out efficiently , collectively and quickly.
 Billing is designed to ensure the needs and interests of the company but not
the interest of the customers.
b. Customer services and support :

 It plays an important role in the company profit equation.
 It includes elements like physical installation of products ,repair , maintenance
and Customer training and equipment upgrading and disposal.
ELECTRONIC PAYMENT SYSTEMS:

Electronic payment system are used in banking ,retail, online government.
Organizations are motivated by the needs of deliver products and services of efficiently
with less cost and provide higher quality of services to the customers.
 Electronic funs transfer (EFT): It is introduced in early 1970s.

 It is defined as any transfer of funds initiated through an electronic terminal or
computer or magnetic tape so as to order , instruct or authorize a financial
institution to debit or credit an account.
Electronic funs transfer (EFT ) work divided into three categories :
1.Banking and Financial Systems
* large scale / whole sale payments
* small scale / retail payments
* Home banking
2. Retailing payment systems
* credit cards
* private label credit /debit cards
*charge cards example: American express
3. Online payment system
It is further divided into two types which are as follows
a) Token based system
* e-cash
* e-check and Digi cash
* net cheques and smart cards
b) Credit card system
* encrypted credit card
* third party authentication or authorization numbers
DIGITAL TOKEN BASED ELECTRONIC PAYMENT SYSTEMS

 Electronic token is a form of electronic cash or money or cheque.
 This tokens are designed as electronic analog of various forms of payments
backed by bank or financial institution .
1. Cash or real-time :
In this transactions are settled with exchange of electronic currency (e –cash)
2. Debit /pre paid :
In this , users pay in advance for privilege of getting information or service.
3. Credit or post paid :
In this users need not pay in-advance but getting the total service.
The server authenticates customer and verifies with bank fund or adequate
before service.
Example : credit card , debit card
The following view points are evaluated for the payment instrument in
electronic commerce :
1. The nature of transaction for which the instrument is designed.
2. The means of settlement used tokens are backed by cash , credit , e-cash etc
3. Approaches to the security and anonymity
4. The question of risk at what time occurs , tokens suddenly become worthless and
customer have currency that no body will accept.
Electronic cash (E-Cash) :

- It combines the computerized convenience with security and privacy that
improves on paper cash.
- It makes an alternative for payment over the internet.
- It replaces the cash as principle payment vehicle in consumer – oriented electronic
payment system.
a) Properties of e-cash:
It has the following four properties :
i) Monetary value
ii) Interoperability
iii) Retrievability
iv) Security
i) Monetary value :
It must be backed by either cash or currency , bank authorized credit or bank
certified cashiers check.
ii) Interoperability :
E-cash exchangeable as payment for the other e-cashes or goods or services.
iii) Retrievability :
It must be storable and retrievable means that the remote storage and retrieval
would allow to exchange electronic cash(e-cash).
iv) Security :
e-cash should not be easy to copy or tampered while being exchanged.
b) E-Cash in Action:
 It is based on cryptography system called digital signature Method.
 This method involves a pair of numeric keys that work in tandom
one for encoding and other key is used for decoding .
 The encoded message within one numeric key can only be decoded
with other Valid numeric key and none other.
c) Purchasing E-Cash from Currency Server:

- E-Cash purchased an online currency server ( bank).
It involves the following two steps
i) Establishing of an account
ii) Maintaining enough money in that account.
- E-Cash transactions in which multiple customers (internationally ) have account
With central online bank , so that they can do international currency transactions
Like foreign services as well as local services etc.
- The customer use the electronic cash software on a computer to generate a random
Number which serves as note.
- It can be exchanged for debited transaction ,the bank issue its private key to
Digitally sign the note for amount to be requested and transmitted the note back
to the customer.
- The new currency server is issuing a bank note with a serial number and a dollar.
Risk operations and e-cash :

It is performed by imposing constraints like limits on e-cash
 Time limit : means that over a given time period electronic money is valued
 How much can be stored on and transformed by electronic money.
 The number of exchanges that can takes place before a money needs to be re
deposited with a bank.
 The number of cash transactions that can be Made during a period of time .
Business issues and E-cash :

E-cash full fills two main functions with respective to business.
1. As a medium of exchange
2. As a store of value
1. As a medium of exchange :
It is used as digital money (cash) as medium of exchange by moving monetary clients
quickly and by effecting instant credit and viabilities that characterize today’s business
2. As a store of value :
E-Cash had to be convertible into legal tender on demand , then every unit there would
be unit of cash reserved in the real economy.
ELECTRONIC CHECKS
They are designed to accommodate many individual and entities that might prefer to
pay on credit or other than cash.
From the above diagram the buyer must register with a third party accounting server
before they are able to write electronic check.

-The accounting server acts as billing a servicing and the registration process
depends on the accounting server , they may require a credit card or bank account
details to back the checks .
-Once the customer registered a buyer can contact seller goods and services to
complete a transaction .The buyer sends the check to the seller for a certain amount of
money.
-These checks may be sending using email or other transport.
-When deposited the check authorize transfer of account balance from the current
against the check was drawn to the account.
-Accounting server authenticates digital signature on the check using the key
method of cryptographic algorithm.
E-Check have the following advantages:
 They work same as traditional checks , thus simplifying customer education.
 It is well suited for clearing micro payments.
 It creates float and availability of transaction cost.
 Financial risk is taken by accounting server so easier acceptance.
Another check called “netcheque” was developed by Information science institute(ISI)

by Clifford Newman.
It include software for writing and depositing checks independent of other applications.
The API will provide common functions to be called as automatically when with other
transaction functions.
Smart cards and electronic payment systems:

1.Smart cards are credit and debit cards which are enhanced with micro processors
capable of holding more information then the traditional magnetic chips.
2. Smart cards technology widely used in countries like Germany and Japan and
France to pay public transportation , phone calls etc.
3. Smart cards are basically of two types:

a. Relationship based smartcard
b. Electronic purses and debit cards
a. Relationship based smartcard :

 It is an enhancement of existing card service or the addition of new
services that a financial institutions delivers to its customers via chip
based or other device.
 The new service includes access multiple accounts , value added
market programs etc.
 The enhanced credit card store more information of card holder like
birth date , personnel shopping preference and other his own details.
Advantages or use of smart cards :

The following are the advantages of the smart cards:
i ) It is used to access multiple accounts like credit , debit and stored value for
e-cash on one card or on electronic device.
ii) It performs different functions like cash access , bill payment , balance
enquiry etc.
iii)It is used as to access multiple account located at different locations by
using multiple device types like PDA ,PC , screen phone and an ATM.
b. Electronic purses and debit cards :

 It is a wallet – sized smart card embedded with programmable micro chip
that stores some of money for people to use instead of cash.
 It works in the following manner of activities are performed in it.
 After the purse is loaded with money at ATM it can be used to pay for the
vending machine need only verify that a card is authenticate or not and there
is enough money or not.
 The value of purchase deducted from the balance on the card and in the
vending machine. The remaining balance in the card is displayed by ATM
on the screen.
 The amount in the purse is empty then it can be filled with more money.
Smart Card Reader And Smart Phones :

 Smart card readers are used to communicate with the chip on the smart card.
 In addition to reading from and writing to smart cards these devices can also
support different key management methods.
 Some smart card readers combines the elements of PC, POT , phone and so
on.
 Some Smart card readers have the display features of two lines X 16
Characters display that shows the both prompt and response entered by the
user.
 It can communicate full range of bandwidth.
 Smart card readers can be customized for specific environments like c
program operating system which used to create and modify applications
with full devised security function.
 To promote Smart card readers usage a smart card forum is to be maintained

by a group of 300 companies and government agencies drawing up to
provide common specifications to the multiple applications to the smart
card users.
Smart phones :
 These have the features of smart card readers with additional features of
four lines screen , phone key pad , and menu prompt to do transactions and
magnetic strip card readers for storage.
Credit Card based Electronic payment systems:
Credit card payment on line network divided into three basic types:
1.Payments using Plain credit card details
2. Payments using encrypted credit card details
3.Third party processors and credit cards details
1.Payments using Plain credit card details :

In this type of payment the plain credit cards transactions are performed.
The exchange of unencrypted credit cards over a public network like telephone or
internet.
2.Payments using encrypted credit card details:

In this type of payment the encrypted credit cards transactions are performed.
 encrypt your credit card before sending them out.

 following operations are performed on the secure credit card.
 Customer presents his / her credit card information to the merchant.
 The merchant validates the customer identity is the owner of the credit card.
 The merchant relays credit card charge information and signature to its bank.
 The bank or the processing party replays the information to the customers
bank for authorization approval.
 The customers bank returns the credit card charge authentication and
authorization to the merchant.
3.Third party processors and credit cards details :

 In this consumers register with a third party on the internet to verify
electronic micro transactions. It use various mechanisms with attribute of
electronic tokens.
 It differs from electronic tokens in TWO aspects:
 a. they depends on existing financial instruments
 b.They require online involvement of more then one party at a time.
 The companies who providing third party payment services on the internet
are: 1. First virtual ( www.fv.com) and
2.open market ( www.openmarket.com )
The online third party processors (OTPPS) created a six step process to
buy information on line.
1. The consumer acquires an OTPP account number by filling out

registration form.
2. to buy anything online , the consumer requests item from the merchant by
quoting his OTPP account number.
3. The merchant payment contacts the OTPP payment server with the
customers account number.
4. The OTPP payment server verifies the customers account number for nthe
vendor and check for sufficient funds.
5. the OTPP sends (the payment server) electronic message to the buyer by
using automated message from www or sent by OTPP server or sent by
simply email .
6. If the customer payment server gets yes from the customer then the
merchant is informed and customer is allowed to do the transaction.
OTPP server has two servers namely :
a. Merchant server and b. payment server
- With the payment server user may can make account then by using client
browser a user server by clicking online payment URL.
- The online payment URL encodes the following information to the status of
page duration it specifies how long customer gets access to the target URL.
- This payment URL send the above data is to the payment server.
-The merchant runs an HTTP server that is modified to access URLS.

It should includes the business pros and cons.
Record keeping with credit cards my leads to disputes and mistakes in billings.
The complexity of credit card processing takes place as a potential bottleneck

due to high volume of the network traffic and card transaction traffic etc.
Encryption and transaction speed must be balanced.
Infrastructure for online credit card processing:

They are includes the following: They are EFT networks , credit card
association , software developers , bill Payment companies and telephone
communication providers.
RISKS AND ELECTRONIC PAYMENT SYSTEMS:

They are three major risks occurs in payment systems , they are as follows:
1. Mistake or fraud
2. Privacy issues
3. Credit card risks
1. Risks from mistakes and disputes:

By virtually electronic payment systems need some ability to keep automatic
records for the transaction.
The various features of automatic records are permanent storage , payment

database system , data transfer to bank and payment makes etc.
The need of record keeping is conflicts with the transaction anonymity of cash
2.Privacy issues are managing information privacy:

The e-payment system must ensure and maintain privacy. Users must be
assured that knowledge of transaction will be confidential and limited to the
only parties not for others.
Privacy must be maintained against eavdroppers on the network and

against unauthorized insiders.
All details of consumer payments are aggregated and are given privacy.
3. Managing Credit Risks :

Credits are systemic risk is major concern in net settlement systems because a
banks failure to settle its net position could leads to chain reaction of bank
failures.
So that the digital central bank must develop policies to deal with this possibility
The central bank can guarantee on settlement and removes the risks from the
net system.
ELECTRONIC DATA INTERCHANGE (EDI) :

EDI is the electronic transfer from one computer to another computer process able data
using agreed standard to structure the data.
Example EDI transaction EDI handbook etc.
EDI is developed in 1960s means of accelerating the movements to shipments and
transportation.
It is aimed at forcing boundary less relationship that means it bringing down the
boundaries that restrict how they interact and do business each other.
Layered architecture of EDI is shown below:
EDI Semantic layer Application level services
EDI Standard layer EDIFACT business form standards
ANSI X12 business form standards
EDI transport layer Email and X.435 ,MIME
POINT TO POINT,
FTP ,TELNET,WWW,HTTP
Physical layer Dial –up lines, internet ,I-way
1.EDI Document standard layer :

1.It specifies business form structure and to some extent influence content seen at the
application layer.
Example: purchase order name field x12 standard might be to hold 50 characters and 75
characters field produced name truncating during translation from application layer to
document standard layer.
2.EDI Transport layer :
It corresponds with non electronic activity of sending business from one company to
another company .It can send using postal service ,registered mail and certified mail
and email etc.
Generally EDI transport layer chooses email As the carrier services.
3.EDI Physical layer : It describes the physical devices which involved in transaction.
They use various devices like dial –up systems ,internet ,I-WAY,
EDI in Action :
Edi has been used in the procurement function to steam-line the interaction between the
Buyer and seller .the other uses for EDI are universities use EDI to exchange transcripts
quickly.
Automatically units uses EDI to transmit large complex engineering design created on
the specialized computers.
Large multinational companies use EDI to send online price catalogs to customers
Listed products , prices ,discounts and terms.
The EDI Transaction for a purchase ,shipment and payments are as follows :
These are the various steps as follows:
1.Buyers computer sends purchase order to sellers computer
2.Sellers computer sends purchase order confirmation to buyers computer
3.sellers computer sends booking request to transport companies computer.
4.Transport companies computer sends booking confirmation to sellers computer
5.sellers computer sends advance ship notice to buyers computer.
6.Trnasport company’ s computer sends status to sellers computer.
7.buyers computer sends receipt advice to sellers computer.
8.Sellers computer sends invoice to buyers computers.
9.Buyers computer sends payment to sellers computer
In short . a firm adopting EDI as fast , inexpensive and safe methods of sending invoices
and purchase orders , custom documents , shipping notices etc.
EDI used as a strategic tool that enhances completeness of companies involved.
It speed ups business processes.
Tangible benefits of EDI are:
It has the following benefits:
1.Reduced paper based system: It does not require any paper related supplies and other
modes of things. It uses Inexpensive manner of system.
2.Improved problem resolution and customer services: EDI minimize the time ,
companies spend to identify and resolve inner business problems.
Example : some problems comes from data entry errors.
3.Improve service by quick transfer of business documents
4.expanded customer supply base /supplier base:
Many large manufactures and retailers with the necessary clout are ordering their
suppliers to institute an EDI program. Like to get order from unknown company and
build bridges to other companies .it evaluates new products .
2.EDI APPLICATION IN BUSINESS :
It involves the various of applications in business , they are
i. International Trade and EDI and ii.The components of international trade
iii. The customs and international trade and iv. The logics of transport.
The below diagram describes the various processing of operations involved in
The design of product.
3.EDI :LEGAL ,SECURITY ,AND PRIVACY ISSUES

B. EDI COMMUNICATION LAYER:

The communication portion of EDI deals with communication device called modem
Which provides interface to the VAN.
There are three methods of EDI Accessing :

1.Direct dial /modem – modem connection
2.Limited third party VAN service
3.Full service third party VAN.
1.Direct dial /modem – modem connection :

In this the user has direct access to the partners modem and communicates by
modem to dial the modem of other party.
2. Limited third party VAN service:

These are regional and international communication service providers used with email
etc.
The VAN provides few technical services like protocol conversion , error detection and
correction and delivery the EDI message by means of mail box between the customer
and supplier.
3.Full service third party VAN :
It provides gateway access to two different network communication between two
trading partners must have registered account with the third party and maintain their
identification to provide EDI transaction.
Value added Network VAN:

Added Service Network which provide communication exchanges of EDI messages
among trading partners.
It provides services like holding messages in electronic mail box.
i. Interfacing with other VANS
ii. Supporting many telecommunication nodes and transfer protocols.
Electronic Mail Box

It is a software in which user deposits EDI translations and then retrieves those
message when they convenient.
It works like a personal mail boxes .VANS have allowed companies to automatically
and securely exchange their purchase orders , invoices , payments etc
Interfacing with other VANS:

It can interconnect different types of networks including VANS.
It provides transactions among those interconnected networks.
Operation or action of VAN:

It can act as the third party in between customer and the supplier or any other two
business entities.
Suppose company A puts EDI message for the company B in the VANS mail box.
VAN picks up the message from the mail box and delivers it to the company B’S mail
box where it will remain until that person logs on and picked up.
When company B’ Send message to company A. It follows the some operation .
This process is repeated itself on a weekly and hourly basis.
VAN Pricing(processing) structure:

1.Amount start up costs with VAN incurs start up cost as well other costs like mail
box maintenance and different network services and cost vary depending on EDI
Transaction of the organization and trading partners.
2.VAN usage costs or variable costs:

It includes the different usage costs like session cost based on type of the EDI
transaction to fax and volume of the usage.
Usage is defined as the number of transactions send and as the numbers of results
received by the customer or the trading partner.
3.VAN charges a character free (1000 characters) with the size of the packet.
In addition to these fees ,VAN also asses the envelop fees for each EDI packet sent or
received .
4.Interconnect costs:
A Company that exchanges EDI Data with a partner that subscribes to a different VAN
will pay a VAN.(pap for their inter connection) inter connect fee etc.
VAN Service providers:

a. AT and T : They are providers which uses VAN strongly in US and European
countries.
b.GEIS: These providers includes around 50 countries and provides experienced and
efficient service.
c.Infonet providers provides long internet services across the internationals(WAN-

WAN)
d. SCITOR: These providers have 150 countries and provides 200 help desks and are
efficiently use by the airline services network
Internet and VAN:
VAN providers are repositioning them selves and their service offerings to competitive.
They provide platform for next generation inter commerce activities across the globe
over the internet.
VAN emphasize that their large customers of vary of internet and they find end users
need security , reliability and authentication.
EDI STANDARDS:
There are two major standards exists ANSI X.12 COMMITTEE and the
united Nations EDI for administration ,commerce and TRADE (EDIFACT)
standard for international usage.
ANSI X.12 :
The ANSI charted Accredited Standards Committee in 1979 to research and
develop standards for business documents.
The X.12 committee develops standards to facilitate EDI relating to such

business transactions as order placement and processing ,shipping and
retrieving ; invoicing payments.
The X.12 Transactions sets generally map a traditional paper to document to an

electronic format that can move easily over telecommunications.
Examples are 840 request for quotation and 843 for Response to request for
quotation . and 850 is for purchase order or delivery order and 855 is for
purchase order acknowledgement .
EDIFACT :
Developed by the United nations , EDIFACT is family of standards similar to
ANSI X.12 .
EDIFCAT was based on TRADECOMS developed by the UK.
EDIFACT is becoming widely accepted as the foremost international EDI

standard.
Today EDIFACT and ansix.12 are working towards compatibility.
Structure of EDI Transactions :

This standards are very broad and general and they have to meet the need of
All business. EDI Messages , however , share a common structure:
1.TRANSACTION SET :
It is equivalent to business document such as purchase order. Each transaction set
is made up of data segments.
2.DATA SEGMENT :
These are logical group of data elements that together convey information , such
as invoice terms, shipping information or purchase order line.
3.DATA ELEMENTS :
These are individual fields such as purchase as order number , quality on
order , unit price .
AN important feature of EDI software and standard is to evaluate and process

structured messages.
The generation of message might also be done automatically. EDI it is quite

common to find a chain of automated actions and reactions.
After acceptable price code the customer enters the order receipt and entry phase of
order management cycle with the valid ANSI have to followed.
This was under the purview of departments to check the suitable standards that the
documents posses with suitable title customer service , order entry and the inside sales
desk. These departments are staffed by customer service representatives.
Work flow automation and work flow coordination:

Work flow :
The process (vision) of automating routine business tasks are called work flow
automation. It involves computer network which is applied to manage complex
and interlocking task and the information they utilize and generate.
The goal of the work flow automation is to be timely completeness , cost

effectively and integrated ways to make business decisions.
Work flow portrays the movement of business process and its associated task
among workers and the operations requires to process the information that moves
from initialization stage to complete stage.
All work flows taken together constitute a process. For automation knowledge
based business process can be defined.
The work flow decomposed into different individual tasks with certain order
1,2,3,……..so on.
A work flow can be complex or simple.
Work flow advantages:

The following are the advantages of the work flows:
1.It is used to determine the amount of cross functional activities in which the
organization integrates.
2.It should provide in-time completion and reduce the complexity of the process
3. In an organization the cross functional activity depends on the three different

activities.
a) Improving the existing process by utilizing the technology
b)After identifying the technology required information that needs for reach
process.
c)Integrating application programming interface , database access etc.
Workflow coordination :
- In this we it use coordination among the different.
- It use certain standard tools that implement electronic forms like lotus notes and
advanced software tools.
- The package that offer network based and customized and attractive to reduce
the paper based work.
-To provide better work flow coordination companies are using software agents.
Work flow related technology:

The work flow technology must be engine for driving the initiative process in a
stream line and transform business interfaces.
The tool kits that can be used will perform different range of functions that are
Necessary for work flow management .
It should consider the following technologies:

i)Middle ware technology
ii)The third party need to learn how to develop and use work flow application
within the environments.
iii.)Organizational memory is becoming practical: The new tools for

organizational memory are achieved towards to provide corporate digital library
and more efficient processing cooperation operations.
Supply chain Management (SCM) :
Supply chain management (SCM) is also called ‘extending” which means

integrating the internal and external partners on the supply and process chain to
get raw materials to the manufacturer and finished products to the consumer.
Most of the companies fails because lack of integration due to fragmented supply
chain management.
An SCM plays an important role in the management of processes that cut across
Functions and departmental boundaries.
It is important in retailing because it mange the demand and supply function.
SCM Optimizes information and product flows from the receipt of the order to
the purchase of raw materials to delivery and consumption of finished goods.
SCM has the following characteristics :

a. Ability to manage the information across industries and
Enterprises.
b. A centralized global business and business strategy with local
Execution.
c. An ability to source raw material or finished goods from any
where in the world.
Supply Chain management ( SCM ) have various functions:

1.Supply chain management: The goal is to reduce the num the number of suppliers
and get them to become partners in business in a win / win relationship.
2.Invetory management : Its goal is to shorten the order-ship-bill cycle.
3. Distribution management: Its goal is to move documents related to shipping.
4.Payment management : The goal is to link the company and the suppliers and
distributors so that the payment can be sent and received electronically.
5. Financial management : The goal is to enable global companies to mange their
Money in various foreign exchange accounts.
6. Sales for productivity : its goal is to improve the communication and flow of
information among the sales , customer and production functions.
It contains two primary models namely :
a. PUSH model
b. PULL model
Each model have three primary elements:
1.Integrated Logistics and Distribution
2. Integrated marketing and Distribution
3. Agile manufacturing.
They are certain failure occurs in the business:

Transaction failures are caused due to an error in the transaction by input data.
This can be rectified by resetting the database to its state prior to the state of the
database. Site failures can be caused due to hardware failures and also software
failures.
In order to stabilize the database we employ logging protocols such as write-
ahead logging.
Media failures are caused due to the loss of secondary storage devices like head
crash or control failures and communication failures arises due to errors in
messages, improper ordering of messages, lost or undelivered messages and
line failures.
Error messages and improper ordering of messages comes due to computer

network protocols where as lost messages and line failures comes due to
distributed database management protocols.
The reliability protocol is maintained by atomicity and durability. Atomicity[3]

refers to a transaction that has to be either committed if it has no transaction
failures or it should be roll backed.
Durability refers even if the subsequent failures happen that committed

transactions should be hold.
1.Integrated Logistics and Distribution:

- It deals with integration of materials and physical distribution.
-Supply chain management has umbrella that incorporates the logistic function
- An article called “distribution revoulation “ states the top management image

of distribution and ware house operation that misplaces inventory , ship
products ,waste man powers.
- It also describes cost cutting and performance improvement at the product.
--Logistics and distribution can add upto as much as 30% of total cost for some
business.
- Engineering companies are discovering creative methods of adding value,
cutting costs and increased speed of the product through Supply chain
management .
Purchasing and inbound logistics:

Take an example of supply scheduling , it requires the following steps:
Planner custmer BUYER EDI SALE Supplier Planner
The planner requisition send to the buyer then buyer sends to the purchase order
to the supply sales department via EDI.
Then the sales department communicate to the order to the planner in the
suppliers plant.
2. Integrated marketing and Distribution:

The order process could be initiated by marketing information systems like
point of sales (POS) . marketing edge in several areas like manufacturing ,
logistics planning , management and analysis of new markets and their
targeted customer needs.
- Marketing must find a ways to integrate the customer into the company to
create and sustain a relation between the company and customer.
- Use the information gained from the customer activities.

3. Agile manufacturing :
- In this consumers and manufactures are stressing the quality and speed of the
product.
- It calls the flexibility and quick response to change market conditions

customer demands and competitions actions or activities.
- Agility refers to breaking out of the mass production and producing highly
customized products when and where the customer wants.
It requires the companies to have more than fast activity productive virtues of
the activities.
An enterprise seeks to achieve the following characteristics elements:

a. Greater product customization :
To order and product delivered with low cost and in-time.
b. Interactive customer relationships:
It transform the physical , product into platform for providing evolving of
value added services.
c. Reconfiguration of production:
The process would accommodate swift changes in product design.
CUSTOMIZATION AND INTERNAL COMMERCE:

Technology is transforming consumer choices , which in turn transform
the dynamics of the market place and organizations themselves.
Technology embodies adaptability , programmability , flexibility and
other qualities so essential for customization.
Together they have created the promise of any thing , any way ,
Any time”.
Customer can have their own version of virtually any product , including
one that appeals to masses rather than individuality if they so desire.
- The entity merchant or supplier who acts as interface between the ecommerce
and consumer.
- With respect to the consumer it provides the information as consumer choice

dictates the marketing distribution and production of product and services.
- With respect to the merchant it provides information as need to cut costs drivers
need for improved technology.
Mass customization not mass production :

Customization not involved that much production of heavy delivery.
The mass customization depends on the technology in such a way that it obtain
Product performance in time.
One process being explored in infra red body scanning where by customer
measurements are taken with infrared signals and converted into digital
information which is fed into the automated manufacturing unit.
Customization of services:
The services in which offered by the industries should be attractive and
concurrent activity that needs to the customer satisfaction.
price of customization services:

 pricing is the bridge between the customer needs and company capabilities.
 Company does not understand how to execute order based pricing in
online markets.
 Pricing at individual order levels depends on understanding the value to
the customer. Although order based pricing is difficult to work that
requires meticulous thinking and deliberate execution.
 Once the industries or companies receives the order enquiry they need to
plan the products by sales forecast with the help of people close the
customer either in the sales force or in the marketing group at company
level and at the same time a group of in manufacturing function details.
 A capacity plan that specify how much money spend , how many people
will be hired and how inventory will be created.
 Order planning leads to order generation and orders are generated by
different ways like sales force broad cast, sends emails to customers ,
create www web pages etc.
DIMENSIONS OF INTERNAL ELECTRONIC COMMERCE SYSTEMS
It consists of the following enabling technologies grouped together in

electronic commerce:
1.User modeling and interaction layer:

It empowering the workers of any enterprise to provide insight relevant for
crucial decisions will be the key indicator of success in the electronic market.
2.Mobile agents: Consumer will have personnel agents that look after their
interest. Business will be deploy agents to sell their wares on the network
3.Rich Transaction processing: Transaction will span servers for information

search and retrieval , execute over long periods of time as they travel from server
to server and move between the departments.
4.Document and data management:From nay where on the network , workers

will create , store , view and edit structured and compound documents lik
multimedia content.
The architecture for supporting internal commerce can be divided into five
key areas:
1.Modeling of users and tasks so that intelligent software can decide what to
search for and how to integrate search results.
2. Developing an efficient technology architecture to utilize information.
3. Agent and work flow that acts as a broker in searching , retrieving and
analyzing the information.
4.Navigation and retrieval methods that locate and filter multimedia information
that is useful for particular user and task.
5.An information infrastructure layer that represents the vast network of

information resources.
Making a Business case for a Document Library:
Organizations create and archive millions millions of memos , contacts ,

engineer drawings and other documents.
Document is the life blood of the organizations , it use integrating mechanism for
all business applications.
Documents consume 20 -45 percent of a company’s labour costs and as 12 15

percent of revenues.
American a business create over one billion documents a day and that office
workers spend 40-60 percent of their time preparing ,handing and filling and
copying , faxing documents.
TYPES OF DIGITAL DOCUMENTS:
Some industries the rationalize for generating documents is imposed by state and
federals governance regulations, to support court cases .Tax audits.
Digital document management issues and concerns:

1.Ad hoc documents:
These are includes letters, financial reports, manuals-initiated by managers and
professionals who create content
2.Process-specific documents:
It involves or purchases orders are created, constructed and distributed by support
personnel .
3.Knowledge-oriented documents:It encompass technical documentation,
catalogs of product information and design documents.
TYPES OF DIGITAL DOCUMENTS:
There are two different types of documents are basically defined:
1.Active documents:
They have to provide a framework for managing all different pieces-data and
application-that are present.
2.Document Imaging:
-It emulates microfiche and microfilm.
-An imaging system passes a paper document through a scanner that
renders it digital and then stores the digital data as a bit-mapped image of
the document.
The problem with the imaging approach is that the output contains only
images, not encoded text.
They are TWO standards are defined for image type documents:
1.TIFF-Tag Image File Format(bit-mapped images).
2.ITU-TSS(International Telecommunication Union-Telecommunication
Standardization Sector),compression and exchange of bit mapped files.
Structured Documents:
- Structured Documents apply database structuring capabilities to
individual(guidance) documents and document collections to allow tools to
manipulate document content just like fields within database tables.
- TOC-Table of Contents-database schema that provides the overview structure
for a book, namely chapters and sections.
- A TOC can also define abstracts, subsections, captions, bulleted or numbered
lists, copyright notices and etc.
- The TOC allows users to navigate through an entire document.
Structured Documents provide the following capabilities:-

1. The ability to create easily modifiable structures allow more dynamic
documents and user interaction and manipulation, such as the ability to create
bookmarks, highlight text and write notes.
2. Document formatting and rendering suits different information delivery
vehicles are media.
Active Documents:
* Also called as structured document-oriented computing. It provides an
interactive interface where all documents, applications and data related to a
particular task are assembled that the user can focus on the task.
*Active documents are especially powerful because they combine the
notion of composition of information with the distributed nature of information.
*Active documents allows users to create interfaces that are dynamically
updated from remote data.
*Active documents-distributed network
ISSUES BEHIND DOCUMENT INFRASTRUCTURE

 Creating a digital library docs poses many hurdles and challenges,
incompatible platforms, databases, document formats.
 The infrastructure needs to provide information any time and any place,
to provide access to collection of multimedia documents.
SOME DIFFICULTIES ARISED ARE

 Is that any standard architecture for digital documents.
 Is that any protocols for interoperation between repositories and
libraries.
 The document processing and management must address three
constituencies.
1. End Users:
They need to system to access distributed repositories and
manipulate number of ways not just printing.
2. Developers:
They provide framework to present document design, assuring long

life feature and methodology used to provide document development
and deployment.
3. Document libraries:
 Who manage the dissemination of information with
maintenance and workers can find, create and use the
information they need .
 The processing of retrieved documents must go through
validation, integration and presentation etc.,
4. Document oriented processors :
It consists of the following processes:
 Document creation:
Document is created y the end user.
 Document Distribution :
The document should be distributed via Networks to print on
demand systems.
It may be distributed to the group of people by integrating the
whole document with high speed productions.
* Document retrieval and storage:
Document is stored and retrieved by some techniques like
inventory and supply chain management and various access
methods of sequential and indexed sequential etc.
* Document media translation :
A document can be translated in various forms like audio to
Video one document type to another type document .
CORPORATE DATA WAREHOUSES:

The organizations buying data warehouses for decision support exhibit the
following characteristics :
 An information- based approach to decision making
 Involvement in highly , rapidly changing markets with a large ,diverse
customer base for a variety of products.
 Data stored in many systems and represented differently
 Data stored in complex ,technical , difficult to decipher formats , making
conversion for analysis difficult.
 Data warehouse are necessary as to increases in both volume and
complexity , making it important to establish an information systems
architecture that scattered legacy data into useful information.
The data warehouse performs the various functions :

 Allows existing transaction and legacy systems to continue in
operation.
 Consolidate data from the various transactions in to coherent set.
 Allows analysis of vital information about current operations for
decision support
TYPES OF DATAWARE HOUSES
From the above diagram with respective front end the following actions are
performed.
Front end: It performs the effective analysis of the information user in two
ways.
1. Proactive
2. Simple
1.Proactive delivery :
often changing the decisions the data must be proactively delivered to the end
users.
2 . Simple Retrieval : It is nothing but simple request of data is retrieved.
2.The data can be accessed where they reside on the legacy or operational
Database. Software tools circumvent data access barriers by allowing
users to view an arbitrary collection of files and tables.
Managing Data in Data Warehouse :

 Translation :It translates data from different applications that may
be encoded differently .
 Summarizing : In this required data is represented in views that can
provide limited content data.
 Packaging :The detailed or summarized data put into more useful
formats like sound , video , audio
 Garbage collection: Unwanted data can be avoided.
ADVANTAGES OF INTERNET :
 Now a days internet advertisement are used in most of the enterprises.
To advertise on internet they should follow rules and polices of the
forums , timeliness and cost etc.
 The one internet forum is INET-MARKETING which is discussion
group at http://www.einet.net is used whether advertising should be
allowed in the internet at all.
 Advertisements are used for education customers about there,
introducing new products.
 It can also be used to provide needed information for product and
service information.
 Advertisements generates a significant revenue and defrays the
infrastructure of marketing.
Some questions resolved regarding to internet advertisements

1. Advertisement process: How advertisements can be offered without
junk mail for both potential buyers and advertisers.
2. Core content: What kind of advertisement contents for both potential
buyers and advertisers.
3. Supplement content: What additional services can meet the
information needs of advertisers.
4. Repeat customers: How can viable, mutually beneficial relationships
created between publishers, advertisers and customers etc.
Online Advertisement paradigms:
There are two paradigms that are used in online world.
1. Active | push based advertisements: It provides advertisements in the form
of prints, TV media with the help of certain broadcast model. It uses 2 types
of communications.
a) Broadcast model: It means that within a time it reaches to multiple
customers simultaneously. It uses a direct mail, spot television, cable
television. A spot television advertisement runs on one station in one market.
The number of viewers who see depends on viewers turned on to the station
at a specific time.
Text based broadcast message advertisements posted in USENET in
which common place as more people coming to online for discussion.
Broadcast model is instructive when implemented in online environments.
Drawbacks:
1. It requires active watch the program or read the message.
2. High cost per contact.
3. This model uses direct mailing system.
b) Indirect mail | Junk mail: It creates unwanted delivery and unnecessary

memory usage to the customer. The advertisers believe that they wont get
junk mails from their customer.
Some advertisers try to send junk mails to the list of e-mail addresses
gathered openly.
2. Passive | pull based advertisements: It provides feedback loop with
connecting company and customers. This feature fails in active or push
based mechanism.
It is especially market driven based approach and it adapts timely
changing needs of the customers. It includes the following elements.
a) Billboards
b) Catalogs or yellow pages
c) Endorsements
Billboards: It refers to information placed where it will come to the attention
of customers creating web pages.
Uses:
1. To remind the consumer of the advertised messages communicated
through other media.
2. It maintains high level viewing frequency.
Advantages:
1. It takes the low cost to the customers.
2. It is readily implemented with linked environment www, gofor etc.
Catalogs or yellow pages:

It is an essential tool for organizing information on computer networks as
ability to interact with company or people whom they need to work. It
provides mail look up, electronic resource location and services.
Advantages:
1. The ability to target well defined area from neighborhood to entire
metropolitan area
2. It is a low cost maintenance
3. It is permanent.
Disadvantages:
1. Lack of timeliness
2. Little creative flexibility
Customer endorsements: It provides peoples discussion about their
experiences in both ways positive and negative over the advertisement on
the internet about the products and services.
Some guidelines of internet:
1. Don’t send inspective messages.
2. Don’t sell customer data without the express permissions of the user.
3. Advertisements appear only in designated views, groups and list
servers.
4. Conduct promotions and direct selling only under disclosure.
Market Research: It is based on 3 basic elements.

1. Data collections: It mainly depends on source database producer, and
it can be directly created from www usage. The database producer
will collect and collate data and make it available for the market. With
sage of www it provides audit log of files which are accessed, how
they are downloaded etc.
2. Data Organization: Most of the organizations concentrating on

collecting data and fail to organize properly. The proper data
organization must provide 2 things. Leverage its established database
into customized offerings aimed at different markets and audience.
Leverage its established database in terms of horizontal growth by
cross selling into different markets that may be in another region. The
ability to repackage, customize and organize customer information is
performed as a main work of data organization.
3. Data analysis and sense making: Initially source database particularly

concentrating numeric information in business. The data analysis is
used to link these source database to the analytic tools like forecasting
models and econometric programs. The market research changed with
the contents of multimedia information. Predicting data analysis
accurately is a difficult task because customer needs changes
frequently and he attracts new things easily.
CONSUMER SEARCH AND RESOURCE DISCOVERY

There are 3 different search and resource discovery paradigms are used.
1. Information search and retrieval
2. Electronic directories or catalogs
3. Information filtering
Information search and retrieval:
It is nothing but shifting through large volumes of information to find some
target information. The process of searching for text strings in a collection of
documents follow 2 phases
a. End-user retrieval phase:
It consists of 3 steps. Someway the material for text database is searched.
Some server interprets the query and returns the list of documents that meet
the search criteria. Then user selects the required information from the list.
b. Publisher-indexing phase:
It consists of entering documents into the system and creating indexes,
pointers to facilitate subsequent searches. It takes place during off-hours, so
system performance is not degraded. But ed user retrieval and publisher
indexing are interdependent.
WAIS ( Wide Area Information Service ) Search Engine:
1. It enables the user to search the contents of files for any strings of text
that they supply.
2. It uses English language as query front end.
3. It is used on different platforms, can access personal company
published information from single interface; text, picture, audio, video
etc.
4. It consists of 3 elements: client, server and Indexer.
Client: It is used by the consumer to get the relevance information from the
server.
Server: It provides the required information to the client by following its
protocols for security.
Indexer: It takes a list of files in which publisher want index and generates
several index files for it. These index files includes directory of all words
appearing in the database kept in the index, the required data from the large
database. It provides heterogeneous database access. A publisher database
present on different systems and user need to know how to use it. It provides
ways to download and organize. It is used as a topic search as well as a
context based search. Indexes uses 2 methods.
a. File level indexing: It associated with each indexed word with a list of
all files in which that word appeared at least once. It does not carry
any additional information about the location of word within the file.
b. Word-level Indexing: It stores the location of every instance of word.
It enables the ser to search for complete word or part of word.
Disadvantage is it writes the additional information about the location
of the word within the file. The efficiency of file indexing is more
than the word-level indexing.
ELECTRONIC COMMERCE CATALOGS OR DIRECTORIES:

Directory supports customers in a more of options by enabling the
organization of the information space. Directory service includes finding
things like users, data or applications, other resources in a distributed
network.
It informs the potential customers about available services, prices,
quality of the product etc. It is independent of network value added services.
These directories are of two types.
1. White pages and 2. Yellow pages.
1.White page Directory:
These pages are used to locate people or institutions or organizations. It
provides efficient access where the actual information is stored. It is used
within organizations and are integral to work efficiency. It provides from a
static listing of email addresses to directory assistance. It reduce the amount
of duplications as corporations spend money to maintain identical lists in
several sites, payroll, security, fax etc.
The efficiency of white pages is searching and retrieving. Searching is
ability to find people, given some information about them and searches may
return a list of matches that suits. It is accomplished by looking up index.
White pages through X.500: X.500 is a standard which provides directory
for keeping track of individual email addresses on the internet and it is
introduce in USA market.
X.500 features:
1. Decentralized maintenance means that there is no need of centralized
maintenance; it is responsible for local part of directory.
2. Searching capabilities provides capabilities of searching complex queries
like organizations, departments, individuals etc.
3. Single global name space provides single name space information to be
accessed by all the users.
4. Structured information framework
X.500 standard requires the 3 models to built the X.500 directory service.
a. The directory architecture model: It is composed of several directory
service agents. Each DSA is called as server. The DSA stores information
according to the X.500 standard. The various user interfaces called directory
user agents used to interact with the DSA to get the directory services. These
DSA cooperating together and to provide information about particular object
thus forming directory information service.
DIT: It is a hierarchical data structure having root, below countries, below

dedepartment individual persons etc. When information not located in local
server agent then the following methods have been defined.
Chaining: In this, passing requests to several DSA s by making chained link
before response is generated.
Referral: It identifies more suitable DSA who can satisfy the needs of the
user.
Multicasting DSAs: In this, passing some requests to more than one DSA
and gets the response from different DSAs.
2.Electronic Yellow Pages:

It defines towards low profile advertise medium and it provides additional
information about the services like product or service. The yellow page
should be created and accessed by all networks and various interfaces like
TV set etc and other network interfaces.
It provides efficient access in the form of maintaining product
catalogs, buying college information directory etc.
Different Yellow pages:
Basic Yellow pages: It provides human oriented product services by filling
user requirements in forms etc.
Business directories: It provides the information about health, industry, new
clippings etc. It is used in different areas like foreign trade, investments,
research tasks etc.
Directory by SIC(Standard Industrial Classics): The directory is
compiled by government rules.
Manufacturing directory: It provides information about product or service
to manufacturers.
Big-business directory: It is a list of companies of 100 or than number of
employees.
World wide web yellow page directory: It lists the different servers
scattered around the internet. Example: yahoo, google.
Interactive catalogs:
Its goal is to enable customers everywhere to buy goods from anywhere in a
virtual mall open by 24 hours a day, 7 days a week. Customers simply look
through online mercantile and interact with the company by means of email,
filling forms etc.
Catalog supports product or service binding, coordinated purchasing,
retail details from the different mercantile etc. Creating a online catalog is
challenging task and the information overload. It is suitable for small
business and effectively utilize the marketing staff, sales etc.
Examples of Interactive catalogs:

1. Electronic broachers, touch screen kiosks and other interfaces.
2. It is used in applications like banks, computer stores etc.
3. Kiosks catalog is designed for easy interpretation and low cost. It
includes various hardware like CD-ROM, laser printers which runs
under various operating systems like OS12, DOS, UNIX etc.
Information filtering:
It describes a variety of processes involving the delivery of information to
people who need it. This strategy is needed because organizations rely on
computing methods to filter and disseminate information.
Features:
1. Filtering systems involve large amount of data like giga bytes of text
or much larger amounts of other media.
2. Filtering typically involves streams of incoming data either being
broadcast by remote sources or sent directly by other sources.
3. Filtering means the removal of data from an incoming stream rather
than finding data in that stream.
4. Filtering has also been used to describe the process of accessing and
retrieving information from remote databases.
5. Filtering systems deal with textual information and is based on the
individual or group information preferences called profiles.
Mail-filtering agents:
The users of mail filtering agents can instruct them to watch for items of
interest in email, boxes, online news services, electronic discussion forums
etc.
Example: Apple’s Apple search software which enables creation of personal
search agents called reporters to search incoming mail messages and
documents obtained from online feeds.
News filtering agents:

These deliver online real-time news. Users can indicate topics of interest and
the agent will alert them to news stories on those topics as they appear on the
new wire customers can receive their news stories through the delivery
channel of their choice-fax, email, Lotus notes platform etc.
A multimedia entity must pass through a series of stages from inception

to display including the Following features:
1. Image capture /generation : The image is captured by a sensor or camera or

is generated by computer.
2. Compression : data must be compressed to reduce its volume without

degradation of at the receivers end.
3.Storage : compressed data are stored on CDROM network storage servers.
4. Desk top processing and display : The data stream containing images may be
stored until ready for display and video , audio and data for each program are
separated.
5.presentation :It represent the visually attractive data.
KEY MULTIMEDIA CONCEPTS :
MULTIMEDIA DEFINITION: It means that different things in different

circles. It includes graphics , animation, sound ,audio and video.
The problem of multimedia developers is size of new data type and the demand
for time synchronization for video and audio.
The size of multimedia data type affects storage , network band width , processing
power etc.
Multi media data compression :

Compression methods are to reduce original volumes data when they are sending
or transporting.
Different methods are as follows :
1. Sector oriented disk compression: These are integrated into Operating
system and is invisible to the user.
2. back up or archive oriented compression: program like PKZIP used to

compress files before they are down load.
3. Compression of data being transmitted over low speed network :

V.32 compression in modem can reduce bottleneck low bandwidth of
sending data.
Compression techniques:
They are two compression techniques namely :
1. LOSSY compression technique
2. LOSSLESS compression technique
1. LOSSY compression technique :

In this given set of data will go a loss of accuracy or resolution after
cycle compression and decompression.
This method is used on voice and graphics and video data.
2. LOSSLESS compression technique :

In this given set of data will go a without loss of accuracy or resolution
after a cycle compression and decompression.
This method is used on voice and graphics and video data.
Multimedia Servers :
A server hardware and software system that runs raw data into usable
information. It captures , mangers delivers text and image , audio and
video.
Multimedia platforms :
Multiprocessing is defined as the ability to support the concurrent execution
of several tasks on multiple processors.
The processors Can be tightly or loosely coupled.
Symmetric Multiprocessing :
It treats all processors are equal or any processor can do any other
processor work. Applications are broken down into process , tasks and
threads to be run concurrently on any available processor.
It increase the processor throughput.
Asymmetric multiprocessing :It assigns the each task to a specified processor .
Multitasking : Means that the server operating system can run multiple
Programs and gives the illusion that they are running simultaneously by
Switching between them.
Multithreading :
It is a form of multitasking and refers to the ability to support separate path of
execution within a single address space.
In multithreaded program , processor is broken into independent executable tasks

called threads.
Multimedia storage technology :
There are two type of storages are used based on network and desk top based.
1. Network based (Disk arrays ) : It stores enormous amount of information
and becoming fire wall server and other electronic servers.
 The technology behind disk arrays is RAID –Redundant array of
Inexpensive Disks.
 The circuit RAID uses five and half inch disks to provide a single
virtual Disks to the host.
 RAID has many levels RAID 0 through RAID 5 but also RAID 5
PLUS and 6 and 7.
2.CD ROM Technology Exhibits the following characteristics :

 High information density –high volumes of data stored 4GB , 8GB
 Low Cost : Cheap to store and retrieve data.

 Read only medium –read only accessing of data facility.
 Modest random access performance
Digital Video and Electronic commerce :
1. Digital video is binary data that represents a sequence of frames representing

one image. The frames must be shown at three updates per second to fool
the eye into perceiving them as continuous motion.
2.Digital video my contain synchronized sound track .
3.Digital video first appeared in teleconferencing application.

Characteristics of Digital Video :

 Digital video can be flexible routing through packet switching
technology.
 Digital video enables collaborate planning that requires multiple senders
and receivers.
 Digital video used in consumer market application, computer market
applications.
 Digital video can be manipulated and transmitted and reproduced.
Digital Video compression and Decompression :
To remove the reduncies when transmitting digital video o cost effective

techniques are developed for called as compression .
Which means to compress and decompress the data back again.

Example : DATA OF 100 CDS will store into one CD if you compressed it. One
such code standard is called as CODECS.
CODECS: These are algorithms that determine how the audio and video
information is compressed and stored.
Codecs are uses loosy compression techniques. It attempts to solve the storage
problems.
Type of CODECS:
There two types of Codecs are used :
1. Software based
2. Hybrid based
1.Software based : It comes as bundled software pack like Apple Quciktime

or Microsft video for windows.
Example :Cinepack and Indeo.

2.Hybrid based : It uses a combination dedicated processors and software.
Its compression ratio are enabled by complex algorithms
That requires processing power.
Popular formats let have quick look :
1. JPEG- It is developed by the joint ISO/ CCITT picture experts group

based on file compression and de compression algorithm for individual
still images.
2. MPEG1 AND MPEG2 : These are motion pictures experts group of
standards developed by ISO / CCITT moving for providing digital video
with sound.
3. Cinepak and Indeo : Proprietary stand for the PC which have been
asymmetrical codec and it can easily play 15 fps of video back in
320X240 pixel window and still denominator of CDROM.
Desk top Video processing :

The different components needed for digital video processing and
production. They include kits , sound cards , video play back acceletor
Boards , video capture hardware and editing software etc.
Desk top video hardware for playback and capture:

Desk top video means digital video requires amount of disk space and
CPU power. It requires special hardware to digitize and compares the
analog signal from videotapes , cameras and so on.
Two video play back product are:

1. VIDEO ASCI chips 2. Video capture and editing boards
Video play back : Most desk top video are the size of window 160X120
pixels playing at 30fps.
There is direct relationship between size of the window and the number of
lost frames affects quality.
There are two types of accelerator boards are available video and graphics.
Video accelerators concern themselves with improving playback speed
and quality of captured digital video sequences.
Today combined graphics and/video accelerator boards provide that

function.
Video capture and Editing : These boards are essential for digitizing
incoming video (NTSC) for use in multimedia presentations or video
conferencing , Video capture boards are responsible for interpolation task
in resizing images and sending VGA..
Desk top Video Application Software :
There are two digital desk top video engines available.

1. ApplesQuicktime
2. Microsofts Video for windows
1. ApplesQuick time :
 It is a software program from APPLE that allows operating
system to play motion video sequence on a PC without
specified hardware.
 It has its own set of compression and decompression drivers.
 It offers resolution device independence multi vendor support,
Standard interface between system components.
 It is the first widely used desk top video technology to treat video
as a standard type.
* It supports movies playable no both MAC and windows
machines.
 It has two upgrades one for support multi tracks and
synchronized texts.
2. Microsoft’s video for Window:

 It is a set of software program from Microsoft that allows
windows to play motion video sequence on a PC without
special hardware.
 Video for windows some times called as AVI referring to
the name of its file format.
 It is not available on Macintosh CONVERT Quick time
movie to video for windows.
 It chooses frame based model in contrast to Quicktime
model.
Types of desktop video conferencing:
Most desktop video conferencing systems coming on to the market today are
divided into one of the three communication campus.
1. plain old telephone lines
2. ISDN
3. Internet
Using POTS for video conferencing:
1. POTS systems are especially attractive for point –too point conferencing
2. The draw back with a POTS solution is a restriction to the top speed of
todays modems 28.8 kbps to transmit all the multimedia data.
3. most POTS solutions come complete with an external 28.8 kbps v. fast
fax/ modem , a color video camera , a combination earpiece/micro
phone and two expansion boards
4. Once properly installed the video conferencing, software allows users to
pipe video audio and data down a standard telephone line so making a
video conference call is easy as making a phone call.
5. There is no need to call in advance to set up the video conference.
6. To shrink the video to analog POTS size many vendors use a
proprietary codec as it serves a product differentiator.
Using ISDN for video conferencing
1. ISDN lines offer considerably more band width upto 128kbps but require
the installation of a special hardware assuming ISDN service is available
in an area.
2.The use of ISDN has been restricted to companies especially in private

residencies.
3.For video compression and decompression , the ISDN network uses the
H.261 video compression technology.
4.The international telegraph and telephony consultative committee has

specified H.261 video transmission protocol for use in real time video
information delivery at band width increments of 64 Kbps.
5.Although H.261 is a very good compression algorithm and performs

very well. It is very computationally intensive and as such requires
special purpose hardware in order to function.
USING The internet for Video Conferencing :

Two video conferencing programs are available on the internet
1.CU-SeeME
2.MBONE
1.CU-SeeME :
 It is the first software available for the macintosh and windows
platforms to support real time multiparty video conferencing on the
internet.
 CU-SeeME provides a one to one conference.
 CU-SeeME is intended to provide use full conferencing at minimal cost.
 CU-SeeME allows one –to many broadcasts using the notation of a
reflector.
 CU-SeeME allows user can dial into particular computer on the network
designed as a reflector and receives the broadcasts that emanate that site.
MBONE :
 MBONE is a virtual network that has been existence since early 1992.
 The MBONE shares same physical media and the internet.
 MBONE uses a network of routers that can support multicast.
 MBONE has helped researchers understand efficient multicasting and
also develop the necessary software to facilitate audio and video
broadcasts.
Fig: MBONE Configuration
 The MBONE adds video to earlier work on audio.

 MBONE is a massive virtual network layered on top of parts of the
physical internet.
 MBONE is composed of islands that support IP multi casting to local
clients.

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ELECTRONIC COMMERCE FRAME WORK:

 Public policy to govern such issues as universal access , privacy and

 The information and multimedia content determines the what type of

1.2 THE ANATOMY OF ECOMMERCE APPLICATIONS:

The various applications are :

1.Multimedia content for e-commerce applications

combination of text , audio, video, graphics in computer file. Multimedia is

associated with the hardware convergence taking place in the communications ,

computer and cable industry as the next generation digital.

2.Multi media storage servers and e-commerce applications

Information consumers Access Devices

1.3 ELECTRONIC COMMERCE CONSUMER APPLICATIONS:

Blockbuster research shows that the typical consumer:

Consumer Research and Electronic commerce

1.4 ELECTRONIC COMMERCE ORGANIZATION APPLICATION:

Marketing and Electronic Commerce :

Inventory Management and organizational applications:

Just –in time manufacturing :It is viewed as integrated management systems

Quick Response Retailing :

Supply Chain management :

The business process models are divided into two types:

1.Merchantile’s model from the consumer perceptive :

In general consumer are categorized into 3 types:

The Consumer Information Search Process :

2. purchase consummation phase :

d. Buyer sends the e-cash to the seller

2.Merchantile’s model from the Merchantile’s perceptive :

b) Cost estimation and price of product services

a) Customer enquiry and order planning and order generation:

b) Cost estimation and price of product services :

2. Product service / delivery :

a)order receipt and entry :

d)order full fillness and distribution :

3.Post sale interaction phase :

a. Order billing and account payment management:

b. Customer services and support :

ELECTRONIC PAYMENT SYSTEMS:

 Electronic funs transfer (EFT): It is introduced in early 1970s.

DIGITAL TOKEN BASED ELECTRONIC PAYMENT SYSTEMS

Electronic cash (E-Cash) :

c) Purchasing E-Cash from Currency Server:

Risk operations and e-cash :

Business issues and E-cash :

before they are able to write electronic check.

-These checks may be sending using email or other transport.

Another check called “netcheque” was developed by Information science institute(ISI)

Smart cards and electronic payment systems:

3. Smart cards are basically of two types:

a. Relationship based smartcard :

Advantages or use of smart cards :

b. Electronic purses and debit cards :

Smart Card Reader And Smart Phones :

 To promote Smart card readers usage a smart card forum is to be maintained

1.Payments using Plain credit card details :

2.Payments using encrypted credit card details:

 encrypt your credit card before sending them out.

3.Third party processors and credit cards details :