5G –NEXT GEN CONNECTIVITY

5G MOBILE CONNECTIVITY
➢ 5G, or ‘Fifth Generation’, is a
technology that will run the
next wave of fast mobile
broadband networks in
possibly next two years.
➢ A 5G network will offer
incredible download speeds of
20 GBs/second against 1
GB/second on a 4G network
on our smartphone.
➢ It’s like having a fibre optic
connection in your pocket
anywhere you go.
➢ 5G network will deliver data
with less than a millisecond
(ms) of delay compared to
about 70 ms on a 4G network.
5G MOBILE CONNECTIVITY
➢ A 5G user will be able to
download a 3-hour HD movie
in under a second on his
smartphone compared to at
least 10 minutes for a 4G user.
➢ Video buffering during a
streaming session will virtually
disappear as data transmission
would happen at lightning
speed speeds on a 5G
network.
➢ 5G networks could run on the
3400 MHz,3500 MHz and 3600
MHz spectrum bands.
➢ Airways in the 3500 MHz band
are considered ideal for the
first wave of 5G.
5G NETWORK CONNECTIVITY
➢ Going forward , millimeter wave
spectrum may play a significant role
in 5G networks.
➢ They are called millimeter waves as
they vary in length from 1 to 10 mm
unlike radio waves (measuring tens of
centimeters in length) that serve
present smartphones.
➢ Millimeter waves are broadcast on
frequencies between 20- 30 GHz. Till
date, they have been largely used by
those running satellite networks and
radar systems.
➢ In India government has set in
motion plans to auction 5G
spectrum.
➢ The telecom regulator will suggest a
starting price for 5G airwaves in the
3400 MHz to 3600 MHz bands that
may debut in next auction.
5G NETWORK POSSIBILITIES
➢ Experts believe that 5G technology will
be a gateway of sorts for a truly
connected society.
➢ It is slated to power a host of new age
services such as machine-to-machine
(M2M) communications, Internet of
Things (IOT), connected smart cities,
self driven cars, remote control surgery
to virtual reality.
➢ M2M technologies would allow wired
and wireless devices to talk to one
another using sensors , and such
applications can be deployed in next-
gen infrastructure projects such as
smart cities, smart grids, smart health
and smart transportation.
➢ A 5G powered IOT environment could
enable someone to connect his home
to a wireless network by embedding
them with electronics, software or
sensor technology.
5G NETWORK POSSIBILITIES
5G NETWORK POSSIBILITIES
5G NETWORK ADVANCES GLOBALLY
➢ The global telecom industry expects
large scale 5G trials and
deployments to start by 2019, a
year earlier than the previous
target.
➢ South Korean carrier KT corp is
targeting to launch 5G services as
early as the upcoming winter
Olympics in 2018.
➢ Verizon is testing a 5G fixed
wireless service with Sweden’s
Ericsson in 11 US markets and
weighing a commercial launch next
year.
➢ In Japan , Ericcsson has reportedly
teamed up with NTT Docomo and
Intel to build a 5G trial environment
in central Tokyo , starting next year.
5G NETWORK WEAKNESSES
➢ Researchers say a key
challenges is the possibility of
5G frequencies being blocked by
buildings and losing their
intensity over longer distances,
which could undermine wider
coverage.
➢ Thus if millimeter waves are
used for 5G in future , there
could be possible coverage
issues since such waves cannot
easily travel through buildings
and also be absorbed by foliage
and rain.
➢ But research continues and way
around these challenges will be
shortly found.
 REASONS FOR ecommerce
MANIA
• BOOMING ECONOMY; SURGING MIDDLE CLASS; RISING
PER CAPITA INCOMES.
• AVAILABILITY OF CHEAPER TECHNOLOGICALLY ADVANCED
MOBILES FROM CHINA AND LOCAL MARKET from 50
Million users to in 2013 to 290 m in 2017
• FLIPCART’S BIG BILLION DAY SALES WAS $100 M WITH
25000 TVs , Mobiles , clothing and shoes each 5 lakh
Units.
• Amazon announces $Billion Investment to grow India
operations . As 5 Million new mobile Internet users are
added every month.- India is the biggest and most
growing market in the world.
• Easy availability of finance through VCs, Angel investors
to Ecommerce start Ups.
 TRENDS IN FY 2017-18
• Market Growth from January to June 2017:
• 60 m Smart phones shipped to India
• 9.5% YOY increase in nos.
• Overall mobile market growth is 3% and expected
to grow 12%on year in Q2
• The new iPhone and Galaxy Note 8 which have
seen about 70,000 registrations are expected to
be priced above Rs. 60,000
• Following good monsoon , this festive season
should see aggressive advertising, marketing and
promotions.
 TRENDS IN FY 2017-18
• Flipkart will hold its Big Billion Day sale from
September 20 to 24.
• It plans to triple it’s gross sale this festive season
and double it’s lead over Amazon.
• Amazon’s total storage and logistics capacity is
now 13 million cubic feet.
• It has doubled it’s seller base to 2.2 lakh sellers .
• Flipkart had said it sold 15.5 million units during
last year 5 days sale, while Amazon had sold 15
million units.
FUTURE ESTIMATES OF INDIAN ECOMMERCE
• BIGGER ECOMMERCE
COMPANIES will invest in
supply –chain remove
inefficiencies and make it a win-
win situation for the
producers as well as the
consumers.
• Big ECOMM retailers will
resort to prize wars, leading
to survival of the fittest.
• Lot of mergers and
acquisitions will occur, like
jabong was acquired by
myntra – flipcart company,
taxiforsure acquired by ola
• The smaller stores will
upgrade in technology and
interface with bigger
ecommerce company for last
mile delivery
 INDIAN RETAIL MARKET TO
HIT $ 1 TRILLION BY 2017
GROWING AT AN ANNUAL PACE OF AROUND 16%

Modern Retail as
Sector Famous Ecommerce Sites
% of Total
Segment size
Food & Grocery 1.6% Bigbasket.com, Local baniya.com, Askme
.com
Clothing & Apparel 43.1% Myntra.com, Craftville.com

Foodservice 13.3% Swiggy.com, Food Panda.com

Mobile & Telecom 19.3% Amazon.com, Flipcart.com

Jewellery 10.2% Gitanjali.com

Consumer 22.6% Snapdeal.com, Amazon.com
electronics
Pharmacy 5.9% Netmeds.com, Apollo Pharmacy.com

Home and Interiors 18.6% Magicbriks.com, Pepperfry.com

OUT OF THE TOTAL RETAIL CONSUMPTION 46% IS
URBAN AND 54% IS RURAL CONSUMPTION

Modern Retail as
Sector Famous Ecommerce sites
% of Total
Segment size
Entertainment & 14.3% Gaana.com, Gamingclub.com
gaming
Beauty and Personal 15.6% Myntra.com, Myykart.com
care
Eyewear 8.3% Lenskart.com, Coolwinks.com

Leisure & Travel 20% Makemytrip.com, IRTC.com, goibibo.com

Footwear 4.17% Abof.com, jabong.com

Fashion accessories 13.3% Myntra.co, fashionandYou,.om

Timewear 6.16% Amazon.com, Shoppersstop.com

Fitness 3.8% Shopclues.com, fitLineIndia.com

 HIGHLIGHTS OF AMAZON’S INVESTMENTS:
• Rs.7,000 crore investment made in to unit since Dec.
2015.
• Total investment in Amazon seller services touches
Rs.11,638 crore.
• Amazon India will burn up nearly $1 billion this year in
India.
• Amazon India added the highest number of sellers from
Coimbatore, followed by Kolkatta, Kochi, Madurai and
Pune.
• Amazon seller services saw it’s revenue jump 123% to
Rs.2,275 crore for year 2015-16.
• However It’s losses more than doubled to Rs.3,572 crore
for the same year. Means it lost Rs.300 crore per month .
• Of the total 2.2 lakh sellers on Amazon India, more than
1,700 are so called crorepatis in terms of gross sales.
HIGHLIGHTS OF AMAZON’S INVESTMENTS:

• More than 18000 sellers from India participated in

Amazon’s Global prime day sales event this year.
• About 250 sellers registered sales of above 1 crore in
October 16 alone during Amazon’s great Indian Festive
sale. Amazon India Served orders received from
customers across 97% of the pin codes in India.
• Amazon sold some very unique and quirky Indian
products like Organic Powders, Henna, Indigo, Multani
Mitti, Amla etc. during it’s Black Friday and Cyber
Monday sales in United States
• The major expenses for Amazon was it’s advertising and
promotional expense which went up 54% to 2,163 Cr.
• Legal expenses increased 136% to Rs. 5 22 Cr, salaries
expenses doubled to Rs.348 crore during the year.
BATTLE ROYALE- FLIPKART VS AMAZON

• Flipkart Revenues in 2016 up 50.3% but net losses jump

75% to Rs. 5,223 crore.
• Biz promotion by Flipkart was Rs.1,086 cr against
Amazon Rs. 2,163 cr.
• Flipkart spent aggressively to attract talent and
customers thereby increasing losses, but was successful
in boosting revenue to Rs. 15,403 cr in FY 2016.
• The higher cost of retaining talent- including salaries and
stock options shot up by 124% to1,880 cr.
• Flipkart is still ahead in online smartphone sales with
40% of the market share , it’s share narrowed from
47.5%, taken by Amazon who increased it’s share to 32%
• Flipkart ran up daily losses of over Rs. 14 crore in the last
year to stave off competition from arch rival Amazon.
 ECOMMECE SPEED BREAKERS
• BIGGER BRICK AND MORTAR RETAILERS ARE
OBJECTING TO ECOMMERCE COMMPANIES
GIVING DEEP DISCOUNTS, GOI HAS MODIFIED
LAWS.
• LOWER MARGINS IN FOOD RETAILING.
• INFRASTRUCTURE AND LACK OF TRANSPORATION
AND WAREHOUSE STORAGE FACILITIES.
• LOYALTY OF CUSTOMER IS A QUESTION MARK
• ABSENCE OF TRAINED ECOMMERCE RETAILING
MANPOWER.
 MUST HAVE E- RETAILER’S QUALITIES
• GOOD MARKETING KNOWLEDGE, GOOD
PERSONALITY, ABILITY TO GRASP
PROBLEMS AND BE PROACTIVE.
• KEEN EYE FOR DETAIL- FOR E-RETAIL IS
DETAIL.
• TECH SAVY , Always ABREAST WITH
LATEST TECHNOLOGICAL ADVANCES
AND A LIFE LONG LEARNER.
• THINKING ON HIS FEET; GOOD MAN
MANAGEMENT SKILLS.
• READY TO SACRIFICE PERSONAL LIFE,
AND PUT IN LONG HOURS.
• TRACKING THE COMPETITOR.
 EMERGING E- RETAIL
BOOM
WELCOME TO THE GREAT
INDIAN ECOMMERCE BAZAAR
WHY THE ECOMMERCE BOOM:
• 730 Million No. of Internet users in India
by 2020 – up from 330 Million in Dec. 2015
• 75
• % to 80% of Internet user growth will
come from Rural India
• 1-7 times expected growth of Financial
Technology by 2020
• 175 Million No. of Online shoppers by
2020 – Up 3.5 times from 2015
• 70% of Ecommerce transactions will
happen through mobile phones by 2020
• 50% 0f all transactions will happen
online by 2020

Source NASSCOM REPORT

 INDIA’S GROWTH ESTIMATES

REASONS OF EBIZ GROWTH

• HIGHEST GDP GROWTH
• GROWING RURAL ECONOMY

GOVERNMENT’S THRUST
• DIGITAL INDIA
• SKILL INDIA

TECHNOLOGICAL ADVANCES
• 4G AND 5G ROLL OUT
• USING APPS FOR SOCIAL DEVELOPMENTS
AMAZON’S INDIA’S FOCUS
 EBUSINESS MODELS

BASED ON RELATIONSHIP AND

TRANSACTION PARTIES
E-BUSINESS TRANSACTION MODELS
MODEL DESRIPTION EXAMPLES
B2C Business-to- Consumer : sells Amazon.com,
products or services directly to pepeprfry.com
consumers
B2B Business –to- Business : sells products Indiamart.com
or services to other businesses or Ferguson.com
brings multiple buyers and sellers
together in a central marketplace.
B2G Business –to-Government : businesses PPPIn India.Gov.in,
selling to local , state and federal Mahatenders.gov.in,
agencies, Payment of Taxes TMC.in, GST.GOV.in
C2C Consumer-to-consumer : Consumers OLX.com; Quikr.com;
sell directly to other consumers
C2B Consumers-to-business : Consumers Google.com,
name own price, which businesses Bluehost.com
accept or decline
 DIFFERENCE IN B2B AND B2C
• B2C market over the Internet can be viewed as an open system , where number of
participants is unknown.
• In B2B market, the products traded such as parts and components of cars have , a
high degree of specialty. EDI is involved for exchange of standardized, structured
information between organizations, permitting direct communication between
computer systems.
• B2B covers business transactions along the various interactions existing in the
value chain from producers of raw materials to retailers and consumers including
manufacturers . While B2C transactions include interactions between a customer
and retailer.

B2B

Raw
Material Manufacturer Distributor
Producer

Consumer Retailer

B2C
EBUSINESS TRANSACTION MODELS

Business Business

Government

Consumer Consumer
 Processes in B2C
STEP 1 The customer visits the Website and browses the
VISITING THE products which are well organized by categories,
EBUSINESS SITE & price and availability. The search of the right
SELECTION OF product becomes easy by using a keyword search
PRODUCT engine.

The customer has to register to become part of the

STEP 2
site’s shopper Registry. The customer becomes a part
CUSTOMER
of the company’s growing database and can use the
REGISTRATION
same for knowledge management and data mining.

STEP 3 Through a shopping cart system , order details ,

CUSTOMER BUYS THE shipping charges, taxes additional charges and price
PRODUCT totals are presented in an organized manner. Virtual
malls have a very comprehensive shopping system ,
complete with check-out forms.

STEP 4 PROCESS EXPLANATION

 Processes in B2C
STEP 4
The Merchant then processes the order that is
MERCHANT
PROCESSES THE received from the previous stage and fills up the
necessary forms.
ORDER

Options of payment like Cash, Credit/ Debit card, E

STEP 5
wallets, bank to Bank transfer etc. are given and
PAYMENT
executed. If paid online card details are
PROCESSING
authenticated through a payment gateway or a bank.

STEP 6 When the order is passed on to the logistics people,

OPERATIONS the traditional business operations will still be used.
MANAGEMENT Things like inventory management, TQM,
warehousing, optimization and project management
are incorporated.

STEP 7 PROCESS EXPLANATION

 Processes in B2C
STEP 7 The product is then shipped to the customer. The
customer can track the order/ delivery as Ebusiness
SHIPMENT AND sites have a delivery tracking module on the
DELIVERY website which allows a customer to check the
status of a particular order.

The product is received by the customer and is

STEP 8
verified . Payment if due to be collected. The system
CUSTOMER RECEIVES
should then tell the ebusiness that the order is
ORDER
fullfilled.

After the sales has been made , the firm has to make
STEP 9 sure that it maintains a good relationship with the
customers. This is done through customer relationship
AFTER SALES SERVICE or CRM.

PROCESS EXPLANATION
EBUSINESS B2B ADVANTAGES
 B2B EBUSINESS RECENT TRENDS
• Number of B2B Funding Deals have jumped over last Year :
• 2015 – 173; 2016- 209, 2017- 249,
• However amount of Funding in each deal has seen a small drop:
• 2015 – $305 million; 2016- $225 million, 2017- $ 335 million
• Top B2B funding in 2016 and 2017 :
B 2B FIRM 2016 FUNDING B2B FIRM 2017 FUNDING
Fractical Analytics $ 100 m Greenlight Planet $ 60 m
Neogrowth $ 35 m Sahajanand $ 36 m
Medical
Landing Kart $ 32 m Power2 SME $ 26m
Qubole $ 30 m Tata Housing $ 23 m
Mitra biotech $ 27.4 m Samunati $2 3.5
 B2B EBUSINESS RECENT TRENDS
• In comparison of B2B Funding Deals, B2C Funding deals have dipped but
is picking up:
• Top B2C funding in 2016 and 2017 :

B2C FIRM 2016 FUNDING B2C FIRM 2017 FUNDING

Ibibo $ 250 m Lending kart $ 10.6 m

Snapdeal $ 221 m Paytm $ 140 m

Hike $ 175 m Flipkart $ 104 m

Bigbasket $ 150 m Ola $ 404 m

Cartrade $ 145 m GoFro $ 10.0 m

 Reasons for B2B Ebusiness Popularity
• Less cash Burn
• Low or negligible Consumer acquisition cost.
• Little overhead and marketing Expenses .
• High revenue and greater probability of
turning profitable in quick time.
• B2B is finding favour with investors due to
excesses in B2C investments and inability to
meet very high targets..
 B2B Ebusiness Specialties
• B2B is need based business and no need to push
a customer in to buying.
• As clients come to you for products or services it
leads to better unit economics and , faster
profitability.
• With investors tightening their purses and B2C
funding has reduced 68% in 2016, B2B ventures
are becoming attractive.
• B2B might not be as glorified as B2C
counterparts but they mean business. They offer
more bang for bucks.
 B2B Ebusiness Specialties
• B2B gives an opportunity to co- create , collaborate and
even pivot without the risk of burning too much cash to
build a scalable global company.
• B2B startups are coming of age due to pervasive adoption
of smart phones and mobile internet.
• B2B is poised for massive growth because Banking,
Financial services and Insurance (BFSI) solutions from
startups can offer businesses significant benefits in
invoicing , working capital , payroll processing , expense
management and payment collection .
• The recurring business models and reasonable customer
acquisition costs of B2B startups makes it attractive for VCs
funding.
 B2B Ebusiness Specialties
• Globalization of Software as A Service (SaaS) products-
where customers around the world can buy products
made in India for their day to day needs –is a big boost
for the B2B sector.
• Formalization of small and medium enterprise sector –
where smaller businesses are leveraging the cloud and
mobile internet to get best of breed solutions across
operations- offers immense hope.
• Walmart Report on B2B Ecommerce in India is
estimated to touch $ 700 billion by 2020.
• Amazaon gets much larger profit margins from it’s B2B
business than it’s B2C market place.
 B2B Ebusiness Specialties
• B2B market is not driven by heavy discounting but by value
proposition built around key aspects such as product variety,
authenticity and availability and predictability of delivery.
• Backed by IndiaMart Tolexo has over 7,000 sellers and 10 lakh
product listings on it’s platform and has served more than 3.5 lakh
businesses across 900 cities.
• While B2C has done the job of establishing the ecosystem around
ecommerce, in India, the next wave of disproportionate value
creation will come from B2B.
• B2B is significantly under served market still largely unorganized
and with very little technology led innovation.
• Long sales cycles and adoption of technology are the biggest
challenges.
• Unlike the B2B model where freebies and discounts lead to
customer acquisition, it’s a different ball game in B2B.
 B2B”s Edge over B2C :
• Companies like Zoho, Freshdesk, Rategain, and Wingify have given B2B
startups a zing.

• It’s also the scalability of business which has made B2B attractive.
• B2C means complexity in inventory sizing and last mile delivery.

• B2B in contrast is highly predictable as one tends to know the purchasing

patterns.
• B2B customers are with you for a life time. B2C counterparts acquire
customers with heavy discounts leading to negative net margins and
burning cash on every transaction.
• B2C has weaknesses like over hiring to over building the product , to
quickly trying to make money at the cost of customer experience.

• Sustainability is what gives B2B startups an edge over their B2C

counterparts.
 B2B case study- ZOHO
• Zoho is a California headquartered company, incorporated in
Chennai in 1996.
• It has grown in to one of the top product –based software
companies with 150,000 enterprise customers.
• Zoho provides a suite of products for business operations through a
Saas model.
• It offers Customer Relationship Management (CRM) platform that
competes with San Francisco based Zendesk and Chennai based
Freshdesk.
• Cloud based software maker Zoho is eyeing India as the next big
opportunity, as the software-as-a service (SaaS) segment.
• It is using geographical advantage by creating brand awareness
among Indian enterprises through localised commercials and
partner channels.
 B2B case Study - Zoho
• Products offered by these SaaS company allow businesses to
access and manage critical business and customer information
anytime , in multiple languages from multiple devices using cloud
technology.
• For this service , enterprise customers pay monthly or annual fees
based on usage.
• Zoho feels there will be a wave of technology adoption by Indian
enterprises and they can play a important role in it.
• Zoho has allocated Rs. 10 crore as annual budget for marketing in
India.
• India is in the top 5 markets for Zoho in terms of revenue
generation right now.
• Zoho believes enterprise readiness for SaaS will be fuelled by the
govt’s push to bring informal businesses in to formal economy.
• WHILE FIRMS WERE FOCUSING ON B2C ,
ALIBABA WENT THE B2B WAY.

• REST IS HISTORY.

THANK YOU
CHIEF FINANCIAL OFFICER - CFO

STRATEGIC BUSINESS PARTNER

CFO’S NEW ROLES
 UMANG VOHRA- CFO IN CIPLA -NOW MD &
GLOBAL CEO CIPLA.
 AVJIT MITRA – CFO IN INFINITY RETAIL NOW
CEO INFINITY RETAIL.
 SURESH SENAPATY – FORMER WIPRO CFO .
NOW- CHAIRMAN HONEY WELL AUTOMATION
 RAHUL BHATNAGAR – CFO IN PEPSICO ,
NOW MD IN BHARTI ENTERPRISES
 MANISH MOHNOT – CFO NOW MD
KALPATARU POWER TANSMISSION
WHY THE CHANGING ROLES?
 PRESSURE TO MEET QUARTERLY FINANCIAL
TARGETS , GROWING BUSINESS VOLATILITY ,
DEBT MANAGEMENT UNCERTAINTY AND RISING
COSTS HAVE MADE COST MANAGEMENT A FINE
ART.
 EARLIER THEIR JOBS WAS PRIMARILY SEEN AS
RAISING CAPITAL.
 NOW THEY ARE ALSO ALLOCATORS OF CAPITAL .
 THEY ARE INVOLVED IN CREATING INVESTMENT
VEHICLES AND IMPROVING CAPITAL
PERFORMANCE
 COMPANIES HAVE BEEN GRAPPING WITH
VOLATILE EXCHANGE RATES,COMMODITY
PRICES AND INTEREST RATES.
CFO IN A MAKEOVER ROLE
 CFO’S ARE BECOMING COMPANY LEADERS .
 THEY ARE BEING VIEWED AS MORE OF A
STARTEGIC BUSINESS PARTNER.
 THE NEW CFO’S ARE LOOKING BEYOND BOOKS
AND NUMBERS.
 HIS CHIEF ACCOUNTING JOB HAS BEEN PUSHED
DOWN AND INSTEAD CFO’S ARE SPEARHEADING
INVESTMENT DECISIONS AND LICENSING NEW
VENTURES.
 INCREASINGLY COMPANIES ARE OFFERING CFO’S
STRATEGY AND CRISIS MANAGEMENT ROLES.
 THEY ARE ASKED TO FOCUS ON OPERATIONS AND
PLANNING .
CFO IN A NEW AVTAR
 WHILE RECRUITING MANY COMPANIES ARE
HIRING CFO’S WITH MANAGEMENT DEGREES
RATHER THAN FINANCIAL QUALIFICATIONS
ALONE
 EARLIER CFO’S JOB WAS THE SOLE DOMAIN OF
CHARTERED ACCOUNTANTS.
 DUE TO THE CHANGING ECONOMY MANY
CORPORATES HAVE STARTED HIRING MBA’S AS
CFO’S INSTEAD OF CA’S TO SUPPORT THE
CHANGING ROLE.
 THE CLASSICAL ROLE OF CFO HAS MORPHED
FROM MERE ACCOUNT COMPLIANCE TO MORE
ENTERPRISE RISK MITIGATOR AND TRUSTED
ADVISOR.
DESIGNING AN E-BUSINESS WEB
SITE
 WEB SITE GOALS AND OBJECTIVES
• The first step of Web site development is to determine the goals,
objectives and overall purpose of the of E-business web site.
• It should clarify whether Web site will allow:
1. Customers to order products and services on line?
2. Provide technical support for products and services?
3. Advertise products and services online?
4. Build the E-Business’s image and brand?
5. Collect information on current and potential customers?
6. Provide links to related Web pages?
7. Provide general or industry information?
8. Recruit employees?
• The answers to these questions are used to determine Website’s overall
purpose.
 WEBSITE’S TARGET AUDIENCE
• In too many instances e-businesses design
web sites around the needs of the e-business
rather than the target audience wants and
needs. A series of questions needs to be asked
and answered:
1. Is the audience composed of experienced Internet users, novice users,
or a mix of both?
2. What type of browser will the audience use?
3. At what speed does the audience connect to the internet – at 28.8 Kbps
over a modem or over a dedicated connection?
4. At what screen resolution does the target audience view Web pages-
640x480, 800x600 or higher?
 ANALYZING THE WEB SITE’S
STRUCTURE:
• A Website must show visitors what information
they want and how to get additional information.
This information may include :
1. E-Business’s name
2. Slogan, logo or trademark
3. Statement of mission or purpose
4. Information on products or services
5. Press releases and testimonials
6. Employment information
7. Contact Information
8. Maps to physical locations
9. Web site map
10. Customer support information
11. Purchase or Customer information forms
 ANALYZING THE WEB SITE’S STRUCTURE:

• Before considering the Web site content one must design the site structure
• Some web site designs consist of a single level of separate and unrelated pages to
which viewers link directly from a home page.
• When designing the structure of a web site , it is a good idea to create a flow chart
that diagrams the Web site’s navigational structure,
 EFFECTIVE WEB DESIGN
• Good web site design should support an e-business’s web site
message without distracting from that message.
• Web site design techniques include the use of text, color, graphics,
sound, video and web technology such as animation to convey the
Web site’s message.
• Maintaining Consistency: Several elements that should appear on
every page at a Web site:
1. E-Business name
2. Contact Information
3. Logo or Trademark
4. Update date
5. Copyright Information
6. Navigation elements
NAVIGATION ELEMENTS ON A WEB SITE
 WEB SITE’S NAVIGATION ELEMENTS
• Navigation elements are important because a viewer
may not always enter a web site from it’s Home page.
• A viewer must have a way to get to the e-business’s
home page or other pages at the E-business’s site.
Navigation scheme should include an easy way for
viewers to connect to all the major pages at Web site.
• An Internal hyperlink connects two pages at the same
Web site.
• A Navigation Bar is a series of icon or Text internal
hyperlinks to major pages at a Web Site.
• A Site Map is a Web page that shows each page at a
Web site and how all the pages are linked together.
NAVIGATION ELEMENTS ON A WEB SITE
 WEB SITE DESIGN ELEMENTS
• The Entry page of the Web Site should identify the E-Business Clearly. It is
the first opportunity to build the E-Business Brand.
• Some Designer’s use a Splash Web Page that usually contain big, flashy,
animated graphic images to create a showy entrance
• Using Text and Icon Hyperlinks: Text and Icon hyperlinks can be positioned
in the body of a Web page to help viewers navigate a Website or visit
certain pages on other Web pages. Certain graphic images can effectively
communicate the purpose of a Hyperlink.
• Using Text: The way a viewer reads text online is different . They scan text
instead of reading it word for word. Instead of long scrollable pages of
dense text ,online readers prefer Web pages to be short and to the point.
• Font Selection: Web pages should use only one or possibly two different
fonts. If a Web page contains fonts not available on the viewer’s system ,
the Web browser will substitute a different font. It is usually preferable to
use common fonts as Arial or Times New Roman, for Web Page Text.
 WEB SITE DESIGN ELEMENTS
• Background Images: Large background images that fill
the whole screen can cause problems for viewers using
different monitor resolutions. A small image that
repeats over and over again tiled image, is preferable.
• Images and other multimedia : They can, if used
carefully , effectively communicate a web site’s
message. when designing Web pages a image file size
is important because larger the image size, the longer
it takes to download. There are two primary types of
compressed images used in Web designing called GIF
Images, and JPEG Images
 WEB DESIGN TIPS
1. Keep the design of E- Business Web Site simple.
2. Use lots of white space for an uncluttered look.
3. Make certain that the colors used in the design are not
only browser safe but also fit the Web site’s message.
4. Keep the color scheme consistent across all pages at the
Web site.
5. Avoid background images that obscure the text,
6. Avoid frames unless absolutely necessary.
7. Make certain that viewers can quickly scan the text.
8. Make certain that fonts and font sizes and text formatting
for emphasis are consistent across the Web site.
 WEB DEVELOPMENT TOOLS
• There are many kinds of Web development software available ,
from Web page design software to entire Web application
environments. Some of the most common inexpensive Web page
design software includes Microsoft Front page and NetObjects
Fusion.
• For simple Web site design, many people use Microsoft FrontPage
because these applications are easy to learn, provide lot of
functionality, and are relatively inexpensive.
• NetObjects Fusion have a more comprehensive selection of design
features and provide more control over the design process
• These more complex Web design software are also more difficult to
use, and may cost more than twice as much as an application like
FrontPage,
 OUTSOURCING WEB DESIGN
• Outsourcing Web design can save startup e-business time and money by
saving the cost of recruiting and hiring in-house Web design professionals.
• Outsourcing Web design also can enable an e-business to access
experienced design specialists who are familiar with best practices and
current technological changes.
• E-business should thoroughly review several outsourcing candidates to get
the answers to the following questions:
1. What services do they provide?
2. What are their staff capabilities, and what portion of the design work, if
any, they subcontract?
3. Can they provide references and examples of their work?
4. What is their track record for completing projects on schedule.
• Other concerns are:
1. Who is responsible for updating and maintaining the site?
2. What happens if updates are not made on timely basis
3. Who owns the Website content?
PILGRIMAGE AT HOME
KALPNIK- IDEA IS BORN
❑Apul Nahata’s (CTO of venture fund
GenNext) parents wanted to visit Birla Mandir
, but not go to the temple because climbing
the stairs was an issue.
❑His friends John Kuruvilla of Reliance Jio and
Deccan Airlines veteran and Ashwani Garg,
former director of APAC smart Homes and
building at Intel had similar stories to tell.
❑It got the veterans thinking –Could they
possibly use the technology to solve this
unique need?
❑They got together to built the startup
“Kalpnik” a virtual reality (VR) and augmented
reality (AR) product.
 KALPNIK- VIRTUAL DARSHAN
❑Kuruvilla says “Kalpnik attempts to help
people ‘go’ to any place of worship. All
the user had to do was strap on the head
gear.”
❑In 2016, VR/AR was largely entrenched
in the gaming sector, but they felt that
this technology can be applied in a
unique way solve devotee’s problem.
VAISHNO DEVI ❑They met a few IITians at ISKCON
Mumbai who believed that such a
product might possibly be good for their
devotees around the globe.
❑They soon developed an app “VR
DEVOTEE” on both Android and iOS.
 KALPNIK- VIRTUAL DARSHAN
❑Kalpnik received feedback like the
“Headsets are heavy.”, “ The lenses are
not giving a holistic view , can they look
at bigger lenses?”
❑Kuruvilla worked with a product
company to deliver the experience based
such feedbacks.
❑Kalpnik has raised $500,000 from a
SHIRDI SAI BABA TEMPLE clutch of angel investors at Venture
Catalysts.
❑The firm works on a freemium model,
wherein people can watch part of the
video for free and need to subscribe for
the rest.
❑Kalpanik has tied up with around six
temples now and are in the process of
getting 12 more on board.
 KALPNIK- VIRTUAL DARSHAN
❑Kalpnik has began investing in high end
cameras and creating the right rigs to
shoot with multiple cameras.
❑ The company plans to get around 100
places of worship on its platform by the
year end.
❑They also want to set up ‘Darshan
Zone” in residential neighborhoods.
SHIRDI SAI BABA TEMPLE ❑ These zones can shops in
neighborhoods wherein people can walk
into have the VR experience.
❑Kalpnik intends using cutting edge
virtual reality and augmented reality for
the benefits of NRI’s and millennial who
are stretched for time.
 KALPNIK- VIRTUAL DARSHAN
❑Kalpnik is also looking at senior
citizens as potential customers who
wish to participate actively in either
daily or significant religious rituals and
ceremonies without having to
physically visit various sites.
❑This concept is bound to prove a
major boon not only in India but across
ISKON TEMPLE the world too.
INDIA’S LITE REVOLUTION
APP-LIKE WEB PAGES- -
PROGRESSIVE WEB APP- PWA
MOBILE APP DEVELOPMENT AT FLIPKART

❖ Flipkart team realized that mobile

phone is where most on line
shoppers are.
❖ The team decided to act quickly and
reached out to Google.
❖ In a few month’s developed a
solution that wouldn’t hog phone
memory and yet be readily available
on the device.
❖ A web page with all the
characteristics of a mobile app.
 FLIPKART’s PROGRESSIVE WEB APP

❖ Flipkart’s progressive web App,

called Flipkart Lite is the company’s
second largest channel in terms of
transactions after Android app.
❖ The e-tailer’s mobile web app takes
merely 100KB to download, is 100
times smaller than 100 MB Android
app, and 300 times smaller than it’s
iOS app.
FLIPKART LITE
❖ Repeat visit’s takes less than 10 KB
to download.
 FLIPKART’s PROGRESSIVE WEB APP

❖The gambit paid off. Flipkart now

gets about 1/3rd of total customer
visit from this PWA

Amar Nagaram- VP Engineering ,

Flipkart says:

“We looked in to the core

principle of what makes for
a great mobile experience .
We wanted to look at what
worked for an Android app
and make that work for the
mobile web
 CHALLENGES ON TRADITIONAL MOBILE APP

❖ In a remote town village Internet

connectivity isn’t great.
❖ Entry level smartphone does not
have enough space to download
shopping app.
❖ In emerging markets a large number
of people are accessing the internet
In India , 80% of the through low cost Android phone.
population access the
internet primarily on ❖ A Progressive Web app aims to solve
mobile, and 85% plus these problems so you get an
of the mobile experience similar to that an app.
population access
internet on Android
devices.
 PWA -MOBILE APP

❖ Before PWA companies typically would

prompt visitors to their mobile websites to
install their mobile apps, using their mobile
websites as a way to attract customers to
their mobile apps.
❖ Improvements in technology now allow
companies to go where their customers
are.
❖ Leveraging the features of PWAs- which
PWA, written in Javascript, include full app-like experiences, web
puts the company in
control of how to respond
notification , home screen icons, logins, site
to requests.
speed optimisation, and transitions
The company can in a way between pages, empowers companies to
predecide what should engage and capture attention of existing
appear on a user’s mobile and new users.
screen and load it quickly ,
whatever the network, and
thus provide good
experience.
 PWA -MOBILE APP-TECH FOR BHARAT

❖ In the last few years several sector

leading internet companies including
Ola, BookMyShow, Myntra, Twitter and
Linkedin have started seeing the merit in
investing in resource to build PWAs.
❖ The logic behind this- you will get more
customers ,whatever their network
connections, without them having to
download an app.
❖ The ever increasing reach of
smartphones and internet in “Bharat”-
India beyond the large cities and towns
can no longer be ignored.
Flipkart was the first company
globally to implement a PWA
❖ The potential to attract large untapped
underlines the technology’s
markets makes PWA a must for startups
importance for India. It is
especially ecommerce companies.
almost as if PWA was tailor
made for Indian conditions.
 PWA -MOBILE APP-TECH FOR BHARAT
55% of Linkedin’s new
members now sign up on it’s
mobile website.
Binny Bansal – CEO Flipkart
says “Flipkart Lite was
becoming a global benchmark
for mobile webcommerce.”
❖ BookMyshow analyzed that
conversion on mobile web was lower
than the Android app.
❖ They now have seen an 80% jump in
ticket sales on mobile website since
PWA was rolled out in March 2017.
❖ For Food Delivery startup Swiggy
saw 40% positive jump in conversion
rates and 58% jump in orders by new
users after PWA was introduced.
❖ For Linkedin India in last 6 months ,
unique visitors to mobile web app
has doubled.
❖ Job applications on mobile webs
have quadrupled since the launch of
Linkedin Lite India since 2016.
 PWA -MOBILE APP-DEVELOPMENT

❖ Building a PWA is not easy. The

technology is constantly evolving and
engineers need guidance and research
to understand the pain points in user
experience.
❖ Google has been crucial in developing
this nascent ecosystem, It has
collaborated with many startups to help
them build a compelling PWA (Flipkart,
Ola, Swiggy)
❖ They have also developed Lighthouse an
open source, automated tool for
improving the quality of progressive
55% of Linkedin’s new web apps.
members now sign up on it’s
mobile website.
❖ Lighthouse eliminates most of the
manual testing that was previously
required.
CREATING EFFICIENCIES DUE TO

FASTER OPERATIONS BY INTERNET

ENABLED PROCESSES
• Bharat Financial formerly SKS Microfinance lends at
19.75% a year , lowest in the microfinance industry.
• Bharat Financials has 66 lakh customers across one
lakh villages in 16 states.
• It’s gross loan portfolio was Rs.8531 crore at the end of
Dec.2016, registering a 38% year-on-year growth.
• It has linked its credit systems to the national database
to speed up cheaper financing.
• This initiative will likely reduce transaction costs by
about 70 basis points in two years .
• Bharat Financials chose Deogoan a village 70 km from
Rajasthan‘s capital Jaipur to harness the benefits of
Aadhar for rural citizens.

CASE STUDY- BHARAT FINANCIALS

• The technology rollout will involve a three step
process- Aadhar based online customer
documentation, credit bureau authentication and
e-signing.
• The company expects the cost to income ratio to
fall to 40% in two years from 47% at present.
• The system will cut- down the time taken for loan
approval from seven days to seven minutes.
• The linking of Aadhaar will help crediting the loan
directly into borrower’s bank account .

CASE STUDY- BHARAT FINANCIALS

• Dinesh Seemakurty personally realized that once
you leave the ICU, the nursing care plummets.
Simultaneously technology is also removed.
• The patient suddenly go from health care that is
about information and data to healthcare where
patients are raising hands, requesting for help.
• Seemakurty’s startup Stasis has come up with
cloud powered vitals monitoring solution, which
addresses the above problem after leaving the
ICU of a hospital.

CASE STUDY- STASIS LABS

• The system consists of a small rectangular box, which
monitors vitals such as heart rate, blood oxygen,
electrocardiogram, respiratory rate, blood pressure
and temperature, and a tablet that streams waveforms
and vitals in real time.
• This can be shared with doctors so that they can
remotely take ’care’ of the patient.
• The monitor is family and patient friendly, if you see
yellow you call a nurse, green means all is good.
• Seemakurty joined hands with his classmate Michael
Maylanhn to launch Stasis labs in 2015, to bridge the
gap between doctor and patient.

CASE STUDY- STASIS LABS

• During the startup time, Seemakurty visited 33
hospitals to understand why did hospitals not
monitor vitals of patients remotely.
• His initial hypothesis was money, but it is more
about manpower. It is about how one nurse can
monitor 10 patients together.
• Statis Labs solution has resolved this issue as
nurses or clinicians keep getting regular updates
on the tablets.
• If there is any abnormality the yellow light is a
signal –the patient, relatives or nurses could then
flag it off.

CASE STUDY- STASIS LABS

• Continuous monitoring of vitals is essential for
any hospital that strives to improve their clinical
outcomes.
• Statis monitors are able to do this without
burdening the limited human resources of
hospitals and with increased effciency.
• This Bengaluru and Los Angeles based startup,
raised $5 million in a seed round led by RTP –
healthcare Ventures.
• The solution is presently being adopted in
hospitals such as Narayana Health and
Cloudnine.

CASE STUDY- STASIS LABS

GOOGLE’S SEARCH FOR NEXT
BILLION USERS
GOOGLE’S REASONS FOR SUCH EFFORTS
 GOOGLE’S REACH IN INDIAN LIVES
Efforts taken by Google India Team ;
✓From last two years, they have been
trying to understand how Mumbaikar’s
live- their daily routine, what kind of
business they do, , how they
commute, , what they spend on, how
often they use their phone or apps or
what kind of information they are
looking for.
❖ In May 2018, Google launched an
app in Mumbai called “Neighbourly”.
❖ This for Google is a big step in getting
new users online and gaining insights
into what online users search for.
❖ Neighbourly is a “Mumbai First”
product from Google and unique in
catering to a single city.
❖ This local discovery and community
app is a platform to find anything
from a doctor, ATM or petrol pump to
a mechanic or badminton coach ,
within a 2 Km radius.
❖ This app is launched in English, Hindi,
marathi and six other languages.
 GOOGLE’S REACH IN INDIAN LIVES
Efforts taken by Google India Team ;
✓They interacted with 1200 people in
Borivali alone – and covered 9,000
people as part of their quest to
comprehend the lives of Indians.
✓This app is being rolled out in
Mathura, Hyderabad , Delhi,
Ahmedabad and Bengaluru.
❖ This app’s design and research data is
being headed by Josh Woodward
who is the Manager on Google’s Next
Billion User (NBU) team- the motley
crew that’s trying to get more people
online.
❖ In an interview Sundar Pichal , CEO,
Google said “ Over time, you will see
more products that are developed in
India first.”
❖ Every few minutes, people use a free
product or platform from Google via
search, videos, payment or maps.
❖ These apps also help to collect more
data on what people do.
❖ The larger vision is to get the Next
billion users on line .
 GOOGLE APPS FOR INDIAN LIVES
Efforts taken by Google India Team ;
✓Google ‘s top brass believes that
India is a perfect market- if you
develop for India, where less than
half the 1.3 billion population is
online, you have a product that
will work everywhere.
❖ Neighbourly : An app for hyperlocal
search. Launched in May 2018 in
Mumbai.
❖ Google Assistant : for information
search launched in Hindi in March
2018
❖ Google AI : for Machine learning
based education started in March
2018
❖ Google Stations : 150 WiFi hotspots
go live in January 2018
❖ Google Maps : Home screen for India
users for easy navigation in Sep. 2017
❖ 2- Wheeler Mode: On Google maps
for India users starts in Dec, 2017
❖ Google voice Search : Launched in 8
Indian languages in Aug. 2017
 GOOGLE APPS FOR INDIAN LIVES
Google Search for Indians ;
✓Madhu Mishra a female Security guard in
in Central Delhi who recently went online
feels Internet has added more
predictability in her life. She checks train
timings daily on Google to see whether it’s
late and decide whether to take bus or
train.
✓She recently bought a ceiling fan after
price comparison on Google.
❖ Google’s VP, SE Asia says “ We have a
mission : Internet for every Indian . And
to get there we have to address all
barriers – affordability, devices,
products, languages and services”.
❖ VP Anandan expects at least 4 billion
people worldwide will be online
sometime this year, through a
significant part of offline people will be
in India, a situation Google wants to
change.
❖ A lot of divide that exists in India be it
gender, income, education or
employment can be effectively and
speedily bridged by NBU program.
❖ For Google each user going online is a
data goldmine even if she is earning
Rs. 6000 a month.
❖ It’s a data game be it free WiFi, Gmail
or anything else.
 GOOGLE APPS FOR INDIAN LIVES
Google Search for Indians ;
✓Google learns more about users and
targets them. If Google can give data on
what soap 30 million poor people uses,
it will be a gold mine for companies like
Colgate, HUL, P&G, Godrej etc.
✓These FMCG companies will save lot
of time on market research and instead
get that information from Google.
❖ With its multiple seemingly unrelated
platforms , Google’s goal is common
–track and know what people do.
❖ This will translate into ads and
revenue for Google.
❖ Once internet companies such as
Google, Facebook, Twitter, Linkedin
have user information programmatic
technology steps in real time .
❖ Anything a user does online – visiting
a website, the location, ID and past
history – is captured and sent to an
ad exchange.
❖ On the other side are the advertisers-
brands that pay to get to show the
ads. All this happens in less than 100
milliseconds.
 GOOGLE APPS FOR INDIAN LIVES
Google Search for Indians ;
✓So when Madhu searches for a
ceiling fan , Havell’s , Crompton , Usha
will compete to show her their ads.
✓To refine the process for advertisers
Google needs to keep collecting data
and improve return on advertising
(RoA)
❖ At present about one third of the
digital ads market is going waste due
to poor targeting.
❖ If you have better data returns can
improve.
❖ As the user base scales to 1 billion in
India, Google believes there are
multiple ways to monetise,
advertise, cross sell, market data.
❖ Google is rolling out free WiFi in
collaboration with Indian railways on
400 Stations.
❖ Google says when you use WiFi the
depth of data collection is better.
❖ Also they do not have to pay
Vodaphone or Airtel to buy data if
the user is accessing net on WiFi.
 INDIA –GOOGLE’S FUTURE MARKET
Google Search for Indians ;
✓Shoppers at Amazon or people
checking out restaurants on Zomato
are bypassing Google to search within
✓To compensate for the loss of users,
Google needs to to keep on adding
new users.
✓All initiatives are linked to this goal.
❖ For Google India is a small but
growing market. Google India crossed
the $! Billion sales milestone in 2017.
❖ They posted a turnover of Rs. 7208
crore a 22% jump from the previous
year.
❖ Almost all of this is digital advertising
revenue. Google and Facebook
corner almost 70% of the digital ad
pie in India and is growing at 30%
year on year.
❖ The digital market is burgeoning but
unlike in the past competition is
catching up with Google .
❖ With competition from Over The Top
(OTT)platforms for videos and other
ecommerce companies, Google is
innovating fast.
 INDIA –GOOGLE’S FUTURE MARKET
Google Search for Indians ;
✓Better information on users can
predict whether a customer can
afford a Carrier,LG or O- General air
Conditioner.
✓By 2025 Madhu will be searching
for Air conditioner and Google will be
there to assist and target her.
❖ Experts say, Google has the
mindshare. To translate mindshare to
marketshare is the challenge.
❖ Google is in no hurry. It wants to keep
creating demand for internet and get
more users online via new products
like Neighbourly and Tez.
❖ With new regulation , the quality of
data Google and other internet
companies collect will improve.
❖ This will increase the trust of users
and advertisers, leading to improved
monetisation.
❖ By 2025, when average Indian’s per
capita income is expected to rise to
$4000 , leading to gretaer disposable
income, Google will have more data
than anyone else on users and their
daily lives.
 LATEST PLATFORM FOR CONTENT
AND ADVERTISEMENTS

OVER THE TOP (OTT) PLATFORM

 SWIMMING WITH THE STREAMING
• In India, content is increasingly being consumed
on mobile phones on OTT (Over the Top) platforms.
• Current generations doesn’t have the patience to
wait for show or movie to air on a linear platform
like TV.
• Between Hotstar , VOOT, Sony Liv, Ozee , Netflix
and Prime Video, an Indian consumer has best
choice for contents.
• In 2015 Star India launched Hotstar , supported by
heavy marketing ensured top of the mind recall.
• With Netflix switching on its services in Jan
2016,was followed by Voot from Viacom18 and
Amazon Prime Video launching in Dec.2016
 SWIMMING WITH THE STREAMING
• With the launch of Reliance Jio in October 2016, which
got the main stream over 70 million mobile internet users
with free hi-speed 4G internet helped OTT to get several
new subscribers.
• The key factors remain compelling content and seamless
user experience, which is what these players are now
focusing on.
• Hotstar admits that bringing together current TV shows,
new movies and live sports on a single platform is unique
and pulling new age customers and youngsters.
• Hotstar says sports is getting big eyeballs but, sports is
less than 15% of their overall watch time.
• Voot has created a destination for kids and it also offers
some international content from Viacom’s global library,
HOW OTT PLAYERS STACK UP ON USERS
HOW OTT PLAYERS STACK UP ON USERS
 CONTENT IS THE KING- OTT
• For VOOT Originals, Big drama series like Naagin, VOOT
Kids and regional language content from Kannanda and
Marathi are a big draw.
• In absence of local TV content library , foreign players like
Netflix and Amazon Prime Video are investing heavily into
acquiring TV shows , films and originals.
• Amazon says their content mix is significantly local and
they have premiered movies within a few weeks of their
theatrical release,and also showing Indian customers the
latest US TV shows(day after broadcast in the USA)
• Amazon has earmarked over $300 million to be invested
into India for original content.
 VOOT AD IN RECENT NEWSPAPERS:

VOOT
NUMBERS:
1. 22 MILLION
DOWNLOADS.
2. 17 MN
MONTHLY
ACTIVE USERS
3. 50 MIN.
WATCHTIME/
DAY/VIEWER
 CONTENT IS THE KING- OTT
• Voot , OZEE and Soni Liv majority of the content is local,
and mostly from their TV broadcasting business.
• OZEE says they see strong traction for regional shows
especially in Marathi , Telugu and Tamil.
• The existing players have a pipe line and library content
,but new players will have to spend money on acquisitions.
• Every player says with falling data prices and free service
from Jio the total time spend on Video app was up by
135%
• The players with deep pockets will try to get the most of
the content and muscle out the competition.
 ADVERTISING ON OTT- NEW FIELD
• As viewership of OTT increases the Advertisers
can no more ignore this medium.
• While Netflix and Amazon Prime Video are ad-free
services, other platforms are dependent on
advertising bucks.
• OTT players are seeing great traction from
advertisers and many brands are putting in money
given the high visibility and surety of ads being
watched on the digital platform.
• But there is a concern over measurement of
viewership. Once BARC starts digital measurement
, the space should see more advertisers coming in.
POWER OF SOCIAL MEDIA
DIGITAL MARKETING
 SOCIAL MEDIA PLATFORMS:
• Over the last 10 years, on line social media have
grown extremely fast and become central to the
lives of hundreds of millions of people.
• Social platforms such as Facebook, Twitter,
Whatsap, Pinterest, Instagram, and Google+ allow
us to communicate with family, friends, and
people that we would have never had the chance
to meet regularly.
• Facebook: It is a popular free social networking
website that allows registered users to create
profiles, upload photos and video, send messages
and keep in touch with friends, family and
colleagues.
CONSTITUENTS OF DIGITIAL MARKETING
 SOCIAL MEDIA PLATFORMS:
• Twitter: It started as a free micro –blogging service that allows
registered members to broadcast short posts called tweets. Twitter
members can broadcast tweets and follow other users tweets by
using multiple platforms and devices.
• Google+ : This is a Google’s social networking project ,designed to
replicate the way people interact offline more closely than is the case
in other social networking services.
• Linkedin : This started as social networking site designed specifically
for the business community. The goal of the site is to allow registered
members to establish and document networks of people they know
and trust professionally.
• Instagram : This is an online mobile photo-sharing video-sharing and
social networking service that enables its users to take pictures and
videos, and share them either publicly or privately on the app, as
well as through a variety of other social networking platforms,
Instagram added hashtags to help users discover both photo graphs
and each other.
POWER OF INTERNET
SOCIAL MEDIA MARKETING:
• Social Media Marketing, or SMM is a
form of internet marketing that
implements various social media
marketing techniques in order to
achieve marketing communication
and branding goals.
• SMM primarily covers activities
involving social sharing of content,
videos, and images for marketing
purposes, as well as paid social
media advertising.
• One of the key components of SMM
is social media optimization(SMO).
Like search engine optimization
(SEO), SMO is a strategy for drawing
new and unique visitors to a website.
• SMO can be done in two ways, by
adding social media content links to
content such as RSS feeds and
sharing buttons or by promoting
activity through social media via
status updates, tweets or blog posts.
 SOCIAL MEDIA MARKETING BENEFITS:
• Increased Brand Recognition :Social media networks are just
new channels for brand’s voice and content. This is
important because it simultaneously makes easier and more
accessible for new customers and makes more familiar and
recognizable for existing customers.
• Improved Brand Loyalty : Brands who engage on social
media channels enjoy higher loyalty from their customers.
• More opportunities to convert :Every post on a social media
platform is an opportunity for customers to convert. When a
following is built , a company has simultaneously an access
to new customers, recent customers, and old customers.
• Higher Conversion rates : Social media is a place where
brands can act like people do, and this is important because
people like doing business with other people , not with
companies.
 SOCIAL MEDIA MARKETING:
• FACE BOOK : Facebook is one of the largest social networks in the world. It
has more than 1.23 billion active users, 62% of whom log in on a daily basis.
It is fast becoming a powerhouse of marketing activity due to the sheer
numbers of engaged users on the site and simplicity of connecting with
them directly.
• Facebook has three major tools- pages, ads, and groups that can be used by
anyone for greater reach.
• 1. Pages : Users can “Like” a page , which means they’ll automatically
receive updates from that page in their news feed.
• 2. Ads : Facebook offers a fantastic targeted advertising platform . Ads can
be created and targeted at specific geographic areas ,ages, education levels
and even the type of devices used for browsing.
• 3.Groups: Facebook groups are similar to discussion forums, but with
additional features those pages and profiles have. A company can create
groups related to their industry or product offering as a way to reach out to
potential customers.
• 4.Post Useful information on the Wall : what you post to your wall will
show up in the news feeds of everyone who has “Liked” your page. So make
sure you are posting useful information for your target audience.
 SOCIAL MEDIA MARKETING:
• LINKEDIN: Linkedin is the most important “professional” of the major
social networking websites, used by over 135 million business
professionals worldwide. Since it is largely focused on B-to-B
connections , Linkedin should be apart of a company’s social media
marketing strategy.
• Status Update : One of the best ways to keep your connections
informed about your happenings is by posting “status updates”.
These are brief statements that you feel your connections will find
useful. They can include links to related content on your website or
third party websites.
• Blog Posts : Linkedin allows to easily syndicate your blog posts to
your profile. As you post your blog on your website , your Linkedin
profile will be automatically updated with your post’s title, abstract
and link to the full post on your website.
• Tweets : If you are an active participant on Twitter, you can integrate
your Linkedin Status Updates with your Twitter Tweets to keep your
connections and followers informed.
Advantages – On line Marketing
 Cost Savings : Electronic versions of catalogues, brochures, and
specification sheets do not have to be printed , stored or shipped. Ease
in incorporating changes.
 Time Savings: Marketers do not have to wait for sales representatives
to give them desired information, they can get it on line on their own.
 Additional customer involvement : On line communications can
engage customer more in making decision about a product’s colour,
packaging method, after sales service queries.
 Interactive Communication : It is information rich and appeals to
Analytical buyers. It helps to quickly search the information they need
 Erases Time barriers: It erases the time and distance barriers that get
in the way of conducting business transactions with customers in other
countries. On line server is available 24x7, 365 days a year.
 Lowers Entry barriers: On line world is a great leveler where size of
the business do not seem matter as much.
 MEASURES OF SUCCESS FOR E- BUSINESS SITES:
 Hits/second: This measures the number of requests for
objects served in each second by a website. Hit/second
counts not just the HTML pages but all embedded objects
in a page as separate requests, which does not give a precise
idea of the number of times a specific page, with it’s
advertisement banners are viewed.
 Page Views/day : This reflects the number of individual
pages served per day. A company paying for a banner ad to
be posted on a page may be interested in the number of
times its ad is being seen. Very popular sites can display a
few hundred million page view per day.
 Click – Throughs : This measure the percentage of users
who not only view an online ad but also click on it to get to
the web page behind it. This metric is oriented more
towards assessing the impact of online ads.
 MEASURES OF SUCCESS FOR E- BUSINESS SITES:
 Unique Visitors: This indicates how many different
people visited a website during certain period of time.
Many times it is more important to know how many
different people visited your site than the total number of
visits during a certain period.
 Revenue Throughput: This is business- oriented metric
that measures number of Rupees/sec derived from sales
from an e-commerce site. This measures implicitly
represents customer and site behaviour. A customer who is
happy with the quality of service of an ebusiness will shop
at the web store and the revenue throughput will increase.
 Potential Loss Throughput: This metric measures the
amount of money in customers shopping carts that is not
converted into sales because the customer leaves the site
due to poor performance or other reasons.
Traditional consumer Market
segmentation :
CUSTOMERS COMMON EBUSINESS FUNCTIONS ON A WEB SITE
Category Function Description
Common Login Login to the site
Register Register as a new user
Search Search the data base
Select View one of the results of a search
Browse Follow links within the site.
Retail Add Item Add item to shopping cart
Remove Item Remove Item from Shopping cart
See Shopping cart Check contents and value of shopping Cart
Create Registry Create a customer specific- wish list
registry
Add to Registry Add to wish list registry
Check Status Check status of previous order
Pay Pay for items in shopping cart.
Information Download Download software/report/music
Subscribe Subscribe to regular downloads
Listen Listen to real-time audio
Watch Watch real- time movie.
 INDIAN MILLIENIALS- DARLING POPULATION OF ALL:
 According to Morgan Stanley’s report Millennials are expected to
drive the boom in India’s on line Consumption. India is the
fastest growing internet market globally.
 This Indian population is largest in the world at 400 million and
its spending power is expected to reach 330 billion by 2020 from
$180 b in 2016.
 36% of India’s population will be Millennials in 2020, and will
form 61% of Internet base and 78% of the online shopper base.
 Time spent on the internet by them : 17 Hours/week, comprising
of 35% on emails/social media; 30% on online entertainment;
23% searching for information ,12% shopping and consuming
contents.
 18% of the Millennials used app based taxi services.; 51% uptake
of premium subscriptions by them.
 89.5% of Mobiles were used to access internet by them and only
8.8% used lap top or desk top to surf internet.
SETTING UP SOCIAL MEDIA COMMAND CENTRES
 Taj hotels felt the need to align processes for
their social command centre Taj.Live to improve
customer experiences.
 Companies like Sula Vineyard, Mariott and
Lorreal are setting up Command centre to
resolve queries in real-time, seize opportunities,
watch out for competition, track trends and
ensures things are handled in a seamless manner
on the web.
 The intention is also to increase sales through
digital platforms in a more thought through
manner.
 In a bid to stay ahead of the pack, Airtel set up its
Social media command centre, CTRLA in
Gurgoan, while HUL used it extensively for
Lakme Fashion Week.
 They say , By listening to millions of
conversations by customers in their native
environment , the command centre has enabled
responding to consumer needs in real time.
 They can view the user interaction through a
single lens and take quick and actionable
decisions and drastically improve customer
experience.
 Social media command centres are considered
to be a centralised listening centre for
companies.
 They are equipped with LED screens that display
real time analytics, live streaming of tweets and
web mentions.
 They help brands in tracking conversations,
managing queries, filter brand sentiment in real
time.
 FMCG companies like Nestle, Taj have invested
lot of money in Command centres as they have
understood the value of real time conversations.
 Multiple teams like Community Managers , social
Media managers, content writers, designers, PR
heads, Command centre Head are involved to
manage the command centre.
 The team is trained on how they should handle/
manage data ,policies and procedures.
 Centers work especially for fields like marketing ,
customer service and risk management .
 They advice senior managers and campaign leaders
to tweak their projects if need be.
 Brands can track competition more closely and see who
is leading by the hour and why.
 They can direct sales opportunities to respective heads
and can gain insights by collecting consumer data on a
monthly basis.
 In future Command centers will track user’s digital
journey to target ads based on line behavior.
 Earlier social media command centers were used to
manage and control negative reaction, this will evolve in
coming time and brand will pro-actively engage users
online.
 Visual data collection from command centers will
become a crucial aspect for organizations to create a
multichannel marketing strategy.
CROSSING THE LANGAUGE
BARRIER
 REGIONAL LANGUAGE OPPORTUNITY FOR
ONLINE RETAILERS
✓Social companies platform Woopir is
running a beta version of it’s user
interface with eight languages for
users from over 250 towns.
✓It has noticed a 40%increase in
engagement and conversion within 2
month’s of upgradation.
• About 75% of Indian internet
users are expected to be
regional language speakers by
2021.
• In order to reach
demographic several IT
companies are designing
platforms in vernacular
languages including
Hindi,Telugu and Tamil.
• They believe this will help the
buyers and sellers to engage
better.
 REGIONAL LANGUAGE OPPORTUNITY FOR
ONLINE RETAILERS
✓Fashion market place Elanic , which
has mostly unbranded sellers on it’s
platform plans to launch a user
interface in Hindi, Gujarati, Marathi
and Bengali.
✓It also plans to have chat option for
for sellers and buyers to communicate
✓At least half of Elanic’s sellers do not
speak English.
• India’s ecommerce market size is
estimated to be over $20 billion in
2018
• This is growing at 25% in metro
areas and about 32% in non metro
regions.
• According to KPMG, India’s local
language internet user base
increased at a compund annual
growth rate of 41% between 2011
to 2016 to 234 million.
• This user base is forcasted to grow
to536 million by 2021.
• As compared to the english
speaking internet user base, local
language internet user base is
pegged to grow at 3% CAGR to
reach 199 million users over the
next three years from 2018
 REGIONAL LANGUAGE OPPORTUNITY FOR
ONLINE RETAILERS
✓Elanic will map ecommerce use cases that
could be around price negotiations, more
product details, delivery date etc. and
launch that in next 6 months.
✓The customer can choose a phrase in say
Hindi and it will be displayed in a language
the seller understands.
• Vernacular language is where
the next wave of growth will
come from.
• Five year’s from now , no
company can be at a scale
without having a vernacular play,
says Industry experts.
• Ecommerce giants Flipkart and
Amazon India which began their
journey with metro cities and
English speaking users have
started relooking at the local
language play.
• They will have to focus on tier 2
and smaller markets to capture
the next 300 million users.
 REGIONAL LANGUAGE CHALLENGES TO ONLINE
RETAILERS
✓Paytm Mall ‘s platform whose user
interface is available in several languages ,
has lot of it’s product listings in english.
✓Paytm is working on programs where high
involvement categories fashion and lifestyle
to have product description and customer
reviews in Indian languages.
• Industry players and experts
believe that re-cataloging of
product in vernacular
languages is a massive
challenge.
• It will involve major cost of
big etailers.
• Experts peg the cost of
creating contents for each
product to be atleast Rs.100.
• It will need high resources
and budgets for the etailers to
reproduce everything in to
multiple languages.
 REGIONAL LANGUAGE CHALLENGES TO ONLINE
RETAILERS
• The first generation of
startups in India began with
focusing on English speaking
users.
• They will now have to
diversify to reach the next
wave of internet users but are
hampered by language.
• Even as Ecommerce
companies seek to tap this
✓Glowroad, a Etailer is seeking to ease
potentially huge market ,
product discovery and communication for
customers by using local languages. experts believe it may not be
✓Their customers usually type out in as easy as it has been for
English but the language is Hindi. content platforms.
✓They plan to launch ecommerce contents
in Hindi
 REGIONAL LANGUAGE CHALLENGES TO ONLINE
RETAILERS
✓Sequola backed social platform
Meesho , which has it’s seller base
across 500 cities is looking to launch
an interface in vernacular languages
in a few months.
• Sharechat which is the largest
non english social media
platform in the country has
around 20 million daily users
interacting in 14 vernacular
languages.
• Vernacular social media
platform Sharechat and
Mooshak have been able to
scale up at an exponential
rate .
• They have set an example on
how imperative a local
language play is in India.
 REGIONAL LANGUAGE CHALLENGES TO ONLINE
RETAILERS
✓Vokal has raised $5million series
A round led by Chinese investor
Shunwei.
✓Company will look at using this
money to build its team and
technology.
• Vokal aims to be go to peer to
peer knowledge sharing
platform for India’s non
English speaking segment.
• Users get on this platform to
get their dose of “love , life
and politics”
• Vokal is being built by relying
on the “middle path”- voice
which is not as cumbersome
as typing in regional language.
• The voice answers can also be
converted to text using
Google APIs
 REGIONAL LANGUAGE CHALLENGES TO ONLINE
RETAILERS
✓Companies such as Zhihu and
Fenda have proven this market’s
potential in China.
✓Regional language users are
expected to account for nearly 75%
of India’s internet user base by 2021
• Vokal is presently catering to the
hindi crowd and is looking to
soon expand in to languages like
Bengali, Marathi, Tamil and
Telugu.
• Vokal is seeing more people
come on platform from tier two
and three cities.
• The platform also has a live
video streaming feature where
experts share their knowledge
with users.
• Vokal is looking to hit half a
million monthly active users
within a few months of its
launch.
WALMART TAKES OVER FLIPKART
❑US retail giant Walmart Inc
will pick up a 77% stake in
India’s largest online retailer
for $16 billion.
❑ This will be the country’s
largest acquisition and
world’s biggest purchase of
an ecommerce company .
❑Amazon had put in a bid of
$22.5 b for Flipkart but
Walmart prevailed due
potential regulatory issues.
❑The private equity and
venture capital ventures are
expected to collectively make
about $14 billion by selling
shares to Walmart.
❑ESOPs held by about 100
current employees now
worth more than $1 million
each.
❑Flipkart’s GMV in 2017 was
$ 7.75 Billion which makes a
year on year growth of more
than 50%
❑Walmart will maintain
Flipkart brand and support
Etailer’s IPO plans.
❑The deal is likely to
increase the flow of capital
into the domestic ecosystem.
❑Several VC Firms will make
large returns and pay back
their limited partners .
CEO Freshwoks says it is a
great deal for Flipkart.
With Walmart’s sourcing
power , Flipkart will be
able to bring products at
very attractive prices and
become very profitable
CEO Paytm says, as
afellow startup guy, I am
so elated that it gives an
answer to everybody ,
who was saying what will
happen to Flipkart and
how will they fight the
battle. Thiis the perfect
answer of perseverance,
aggression and relentless
hard work.
 STORY

2007 2008 2009 2010-2011

✓IIT – Delhi engineers ✓Flipkart secures ✓Flipkart raises $1 1. Tiger Global invests
Sachin Bansal and Binny undisclosed sum from million in its first $10 million.
Bansal quit the Amazon Ashish Gupta, founder institutional fundraise 2. Acquires book
development centre in of Junglee which from Accel India, in recommendation web
Bengaluru to start an Amazon acquired in October at a valuation site WeRead.
online bookstore called 1998, of less than $5 million. 3. Introduces Cash on
Flipkart Delivery.
2014 4. Launches logistics arm
Ekart
2012 2013 ✓Raises $210 million 5. Expands categories to
from DST Global . include music,
Valuation jumps to $ 7 electronics, mobile
Valuation hits $1 Billion ✓Raises $200 million
billion. Buys phones, laptops, large
as Flipkart secures 150 from existing investors. .
Myntra,ngpay and Ask appliances etc.
million from Naspers, Valuation rises to 1.6
becomes 2nd Indian billion. Jeeves.
Unicorn. Acquires ✓ Adopts marketplace ✓Kicks off it’s first Big
Letsbuy.com. Launches model. Billion Day event. .
mobile shopping app. Raises another $700
million
 STORY

2015 2016 2017 2018

✓First major
✓Acquires Adiquity management shuffle, ✓Krishnamurthy ✓Walmart buys 77% of
Appiterate and FX Mart. cofounder Binny Bansal becomes CEO, Binny Flipkart for $16 billion,
✓Progresive Web App becomes CEO, Sachin Bansal becomes Group values company at
Flipkart Lite launched Bansal becomes CEO. nearly 21 billion.
✓Flipkart raises another executive chairman. ✓Flipkart raises $1.4 ✓Sachin Bansal exits
$700 million , valuation ✓Morgan Stanley billion from eBay, eBay company, Kalyan
hits a high of $ 15.2 devalues Flipkart to India becomes part of Krishnamurthy remains
billion. about $11 billion. Flipkart group. CEO and Binny Bansal
✓Tiger Global MD ✓SoftBank vision fund stays on as Group CEO
Kalyan Krishnamurthy invests in Flipkart. and Executive Chairman.
joins to head category ✓eBay ends partnership
management. with Flipkart.
✓Morgan Stanley again
cuts value of Flipkart’s
shares valuing it at $5.6
billion
✓Flipkart acquires
Phone pe. Lays off 700-
100 employees.
Amazon v/s Flipkart
Amazon v/s Flipkart
❑RedSeer report estimates that
40% CAGR market Growth for
etailing market from $18.6 b in
2017 to $50b in 2020. 118m
shoppers by 2020 , with 56m
shoppers from Tier II cities,
❑FMCG will be the next focused
category for commerce players
and is expected to get a stronger
boost as Walmart officially enters
India through acquisition of
Flipkart.
❑RedSeer report estimates that
Amazon will marginally lose it’s
market share in 2018 to 30% from
32% CY17, while Flipkart will increase
its share to 46% from 45%.
FLIPKART WALMART DEAL DATA
 REASONS FOR WALMART’S DECISION
Revenue of Amazon increased by 43%, Losses of Amazon increased by 31%,
vwhile Flipkart’s increased by 15% v/s Flipkart’s reduced by 30%,
Myntra’s revenue increased by 87% Myntra’s Losses reduced by 20%
 REASONS FOR WALMART’S DECISION
Advertising expenses decreased by
16% for Amazon, and it decreased by
22% for Flipkart.
Advertising and promotion expenses
increased by 59% for Myntra.
Employee benefits increased by 54% for
Amazon, and it decreased by 4% for Flipkart.
Transport cost for Amazon increased by 63%,
and reduced by 22% for Flipkart.
Legal expenses increased by 50% for Amazon
and reduced by 22.5% for Flipkart
CLICK & MORTAR
THE NEW RETAIL
NECESSITY OF CLICK & MORTAR
✓ Lower store sales growth as
compared to Ecommerce growth.
✓ Need to touch and feel.
✓ Showcase the range of goods.
✓ Provide after sales service contact
points for repairs/replacement.
 SEAMLESS SHOPPING
❑Ma calls it New Retail and Biyani
– Retail 3.0.
❑It is an omnichannel shopping
experience where lines get blurred
for an interactive and experiential
bonanza.
❑Instead of competing, it’s about
collaboration.
✓ Everyone in India knows the hybrid
models will work. Burning of cash for
market share just won’t work for
online retailers.
✓ That’s the reason why Walmart and
Flipkart association happened.
✓ That GMV (Gross Merchandise
volume) party is over and there will
be just three major players left-
Flipkart, Amazon and Paytm Mall.
✓ The blending of online and offline
retail is a real trend.
✓ Just like foreign markets Click and
Mortar will be very complementary-
Local showrooms, pick up points.
✓ In last five years retailers have
started admitting that offline and
online will coexist.
 SEAMLESS SHOPPING
❑ In retail first consumers went to the
products. Now in the golden age of
ecommerce, it’s products that comes
to consumers –anywhere , anytime,
Technology has made it seamless.
❑After China and the US, India’s 1.3
billion consumers base is becoming
the next battleground from alibaba to
Amazon as they take on local
competition with Biyani and Ambani
✓ Near 10-15% customers are acquired online
to offline (O2O)by Future group, which will
go up to 35%.
✓ A global retailer needs to adapt to the local
style of retailing.
✓ Last year Amazon brought 5% stake in
Shopper Stop.
✓ Amazon India will also sell Shoppers Stop
products on it’s marketplace and will also
open experience centers for Amazon at it’s
stores.
✓ Shoppers Stop feels the biggest advantage
of tying up with Amazon is the reach of 400
million consumers who go online every
month.
✓ Exposing their catalogues to Amazon’s
customers will drive penetration even in
smaller cities and bringing in those who
don’t know Shoppers Stop and make it
convenient for customers to compare them
with other players.
 SEAMLESS SHOPPING
❑ In India digitally savvy check out the
products online before shopping at
stores.
❑When a customers shop via just one
channel, online or off line, they shop 1x.
❑But when they go for both forms ,
shopping increases three to five times.
❑Customers are no more thinking of
channels, but are doing seamless
shopping.
✓ In India , majority of the big players are
still driving price and not convenience or
assortment depth.
✓ Customers want to touch and feel
products, hence convergence is
important..
✓ According to EY report , web impacted
sales or products at present are around
34% much higher than Europe (10%) and
the US (6%)
✓ More and more Indians browse the net
first before purchasing Branded products.
✓ The battle is not to rule the present
share but expand market given that
organised retail is just 6-7%
✓ Offline players such as Tata, Reliance
Fresh, Godrej Nature’s basket have all
launched omni channel
 SEAMLESS SHOPPING
❑ India’s online retailing business is
estimated by more than 1200% to $200
billion by 2026, up from $15 billion in
2016.
❑India’s physical retail market is
estimated to top $1.1 trillion by 2020
❑This is the reason why Amazon and
Walmart , Alibaba want to be strong in all
formats,
✓ Indian retailers are still beefing up their
stores network.
✓ In the past 6years Biyani has acquired
half a dozen supermarket chains to have
presence in 255 cities through 930 stores
in May 2018.
✓ It holds data of 500 million consumers
who have shopped in its stores.
✓ Future is adding a technology layer
wherein new outlets will be opened with
help from Google, which will identify
store locations by mapping consumer
density.
✓ Biyani has also tied up with Facebook and
chatbots , machine learning and voice
recognition startups to drive social
engagement with consumers.
 SEAMLESS SHOPPING
❑ Brick and mortar store will allow orders
on Facebook Messenger, Whats App or
through its voice app.
❑Analytics will plot consumer behaviour
and buying patterns to better manage
inventory.
❑After already testing them in 350
Easyday stores with 500,000members in
Punjab, Biyani is confident of lowering
cost of operation by 8-10%
✓ There was a thinking among brick and
mortar as well as online retailers that
never the twain shall meet.
✓ But for customers this isn’t the case. They
want price, convenience, access and
range of products.
✓ In conventional retail , occupancy is the
biggest cost, while for ecommerce it is
the fulfillment cost.
✓ TataCliq is betting on phygital model or a
combination of onine buying or store
purchases to ram it’s way out of the
clutter.
✓ More than a third of the orders are
delivered through phygital store and
shipped out of store .
✓ 4-8% orders are collected by customers.
 CLICK & MORTAR
THE NEW RETAIL-SESSION II
 CLASS TASK
❑ Divide the class in 4 groups.
❑Each group to be given one ecommerce firm from following :

❑ 1. Pepperfry
❑2. Lenskart
❑3. Makemytrip
❑4. Cars 24

❑ Compare the firms for comparison on offline stores on following parameters:

❑Concept of business
❑No, of stores and expansion plans
❑Advantages on this criterion, Disadvantages of this concept.
❑Financials summary.

❑ Group presentation to be made on above. 15 minutes prep time.

❑2 representatives to select the best presentation and justify with facts and
figures.
❑Winner Team gets a prize.
SESSION 10
E Security Breaches
E-BUSINESS SECURITY NECESSITY
 The internet is a public network consisting of thousands of private
computer networks connected together . This means that private
computer system is exposed to potential threats from anywhere on the
public network.
 Protection against these threats requires businesses to have stringent
security measures in place.
 Cybercrime leaves physical electronic evidence, but unless a good
security measures are taken, it may be difficult to trace the source of a
cybercrime.
 New methods of attacking networks and web sites and new network
security holes are being discovered everyday.
 Very important reason to protect an e-business’s Network and web site
is to protect the E-business’s relationship with it’s customers.
 Many Internet users perceive that there is a large risk to their privacy
and security when they buy products and services or submit personal
information online.
 E-business should have adequate security to protect its assets, revenue
stream, customer privacy and it’s own reputation.
 E-Business’s Computer systems
security Aspects:
1. How secure is the server software? Security should be placed to
prevent any unauthorized remote logon to the system.
2. How secure are communications ? Customer credit card
information and other sensitive data that is being transmitted across
the internet must be protected.
3. How is the data protected once it is delivered to the e-business?
Is it stored in unencrypted text files at the web site? Is it moved to
offline storage.
4. How are credit card transactions authenticated and
authorized?
5. Human Thereat : The biggest potential security threat in an E-
business is of humans, rather than electronics , origin. The weakest
link in any security system is the people using it. Educating
employees about the need for security and their roles in security
process is essential.
 WEB SITE SECURITY RISKS
 Hackers and crackers: Hacker is a slang term for someone who
deliberately gains unauthorized access to individual computers or
computer systems. Malicious hackers also called crackers, gain access
to steal valuable information such as credit card numbers, to attempt to
disrupt service, or to cause other damage.
 An e-business must protect itself against unauthorized access to its
computer network, denial of service traffic overloads, and the intrusion
of destructive viruses.
 Denial of Service attacks: DOS attack is an attack on a network that
is designed to disable the network by flooding it with useless traffic or
activity. While a DOS attack does not do any technological damage, it
can do substantial financial damage to an e-business because every
second an e-business’s network or Web site is down may result in lost
revenues.
 Devices to Prevent DOS: A filter is process or device that screens
incoming information and allows only the information meeting certain
criteria to pass through to the next area. A router is a device that
connects two or more networks and forwards information between
networks.
WEB SITE SECURITY RISKS
 VIRUSES: Viruses are the most common security risk faced by e-
business’s today. A virus is a small program that inserts itself into
other program files that then become ‘infected’ just as a virus in
nature embeds itself in normal cells. Examples of virus effects
includes preventing a computer system from booting ,erasing
files or entire hard disks ,preventing saving or printing of files or
several other possibilities. Viruses are generally introduced
computer system via e-mail or by unauthorized network access.
 WEB SITE DEFACEMENT: Web site vandalism or defacement
can be the result of a hacker breaking into a network, accessing
the web site file, and modifying the HTML to physically change
Web pages. Not only do the web site defacement embrass an e-
business, but some Web site defacements can have serious
financial repercussions.
WEB SITE SECURITY RISKS
 CREDIT CARD FRAUD AND THEFT OF
CUSTOMER DATA: Almost all B2C , purchases
involve credit cards. An e-Business that accepts credit
cards for payment of goods and services must secure
the credit card information in transit to its Web site,
and it must secure stored credit card information. A
hacker can break in to a database server and steal
thousands of credit card numbers and other
information in a matter of moments and an e-business
might not even recognize that the hacker was there.
NETWORK & WEB SITE SECURITY
1. The best way to recognize when a hacker is attempting
unauthorized network access is to monitor network
performance. Setting up, logging and monitoring
established network reference points, called benchmarks,
can alert an e-business to security business.
2. Other Tools such as passwords, firewalls, intrusion
detection systems, and virus scanning software should be
used to protect an e-business’s network and web site.
3. Password : It is a code or a word used to gain access to a
computer system. Passwords are only effective when used
properly.
E-Security Products Available
E-Security Products Available
NETWORK & WEB SITE SECURITY
 FIREWALL : It is a software or hardware used to isolate a private system or network from
the public network. A firewall provides an easy to manage entry point to multiple systems
behind it. Firewalls can control the type of information that is allowed to pass from the
public network to the private network, as well as what services inside the firewall are
accessible from the outside.
 Firewalls can also log activity to provide an audit trail , in case the network is penetrated.
 TRANSACTION SECURITY AND DATA
PROTECTION TOOLS:
1. Using predefined key to encrypt and decrypt the data during
transmission.
2. Using the Secure Sockets layers (SSL)protocol to protect data
transmitted over the Internet. SSL provides encryption between the
browser on the customer’s computer and the software on the Web
server , allowing data such as credit card information to be
transmitted securely, SSL uses digital certificates so that web browser
can authenticate the server it is connected to, making sure that credit
card data is going to the appropriate receptient.
3. Moving sensitive information such as credit card numbers offline or
encrypting the information if it is to be stored online.
4. Removing all data and files from storage devices , including disk
drives and tapes, before getting rid of the devices.
5. Shredding all hard copy documents containing sensitive information
before trashing them.
6. An e-business should maintain a security oriented culture, starting at
the top for employees to take security seriously.
7. An E-business should have it’s security systems tested or audited
periodically.
E-Security Products Available
E-Security Products Features
INDIVIDUAL PC SECURITY RISKS:
 Often the principals in an E-Business use standalone personal
computers during the start up phase until funds are available to
build and operate a network, or until an e-business can
outsource its IT operations.
 Some E-businesses offer their employees the opportunity to
telecommute – allowing an employee to use his or her home
computer or installing a business –owned personal computer in
the employee’s home.
 Business employees often work on business files at home.
 Because of these factors it’s important for an e-business to
understand that individual PC’s are also at risk from hackers.
 Individual PC’s can be protected by Anti Virus software and
installing Personal firewall software to guard against
intrusions.
E-BUSINESS RISK MANAGEMENT
 An e-business should manage its e-business risks as a business issue, not just as
a technology issue.
 An e-business must consider the direct financial impact of immediate loss of
revenue, compensatory payments , and future revenue loss from e-business
risks such as:
1. Business interruptions caused by web site defacement or denial of service
attacks.
2. Litigation and settlement costs over employees inappropriate use of e-mail
and the internet.
3. Product or service claims against items advertised and sold via Web site.
4. Web-related copyright, trademark and patent infringement lawsuits.
5. Natural or weather-related disasters.
 An e-business should put in place an effective risk management
program that includes:
1. Network and Web site security and intruder detection programe.
2. Antivirus protection.
3. Firewalls
4. Sound security policies and protection procedures.
5. Employee Education.
METHODS OF DEFENCE
METHODS OF DEFENCE
A. NORMAL DATA FLOW :
Ref. Fig. (a) The data Sent from the source ought to reach in destination without any
tampering . But this criteria may be violated by the following means;
1. Data Interruption : Interrupt the data and cut it off as shown in fig. (b)
2. Data Interception : Intercept the data with the intent of spying on it as shown in fig
(c)
3. Data Modification : Interrupt the data and modify it and send a different data to
the receiver as shown in fig. (d)
4. Data Fabrication : Obstruct the data and fabricate new data and send it to the
receiver - fig (e):
a) Encryption
b) Software control (access limitations in a data base etc.)
c) Hardware controls (smart card)
d) Policies (frequent changes of password)
e) Physical Controls
 HACKERS METHODOLOGY
WHAT IS HACKING?
• Hacking refers to
exploiting system
vulnerabilities and
compromising systems
security controls to gain
unauthorized or
inappropriate access to
the system resources.
• It involves modifying the
system or application
features to achieve the goal
outside the creator’s
original purpose.
WHO IS A HACKER?
• Intelligent individuals with
excellent computer skills,
with the ability to create
and explore into the
computer software and
hardware.
• For some hackers, hacking is
the hobby that how many
computers or network they
can compromise.
• Their intention can either
be to gain knowledge or
to poke around to do
illegal things.
HACKERS CLASS:
 Since a port is a place where
HACKERS METHODOLOGY information goes into and
out of a computer, port
scanning identifies open
HACKING STEPS doors to a computer

• Step 1:‐ Reconnaissance.

• Step 2:‐ Finding Vulnerabilities,
bugs and exploits

• Step 3:‐ Gaining Access remotely.

• Step 4:‐ Maintaining Access • Once an attacker gains control of the

user’s computer, he or she may gain
. access to all the files that are stored
• Step 5:‐ Covering Tracks on the computer, including personal
or company financial information,
credit card numbers, and client or
customer data or lists.
HACKERS METHODOLOGY

• Scanning for live

systems.

• Scan for open ports.

• Scan for vulnerability
E- BUSINESS RISK MANAGEMENT ISSUES
E- Business must consider the direct financial impact of immediate loss of
revenue compensatory payments, and future revenue loss from e-
business risks such as :
1. Business interruptions caused by website defacement or denial –of –
service attacks.
2. Litigation and settlement costs over employees inapproiprate use of e-
mail and the Internet.
3. Product or service claims against items advertised and sold via a
website
4. Web related copyright, trademark and patent infringement lawsuits.
5. Natural or weather related disasters.
E- BUSINESS RISK MANAGEMENT ISSUES
An e business should put in place an effective risk management program
that includes the following :
1. Network and web site security and intruder detection programs
2. Antivirus protection.
3. Firewalls
4. Sound security policies and procedures
5. Employee Education.
 TRANSFER OF RISK VIA INSURANCE
The table below illustrates some of the different kinds of insurance coverages an e-business
should consider when developing an effective risk management program. An E-business’s
Management should consult a commercial insurance broker that offers e-risk
management services, to help develop a risk management plan including insurance
coverage:

E-risk insurance Coverage

Computer virus
Transmission
Extortion and Reward
Unauthorized Access/
Unauthorized use
Specialized Network
Security
Media Liability
Computer server and
services Errors &
omissions
Protects against losses that occur when employees open
infected e-mail attachments or down load virus laden
software
Responds to Internet extortion demands and/or pays
rewards to help capture saboteurs.
Covers failure to protect against third –party access to
data and transactions.
Responds to breach of network security and resulting
losses.
Protects against intellectual property infringement losses.
Protects e-businesses against liability for errors and
omissions when their professional advice causes a client’s
financial loss.