B com III year Oct / Nov 2016

E- Commerce

Part A
1. What is E- Advertising?

Electronic advertising is advertising that uses the Internet and other forms of digital media
to help a business promote and sell goods and services.

The purpose of using Electronic advertising is to reach a wider range of potential

customers by connecting with them over the web. It is also a lot more cost effective as you
can fund your advertising within the boundaries of your own budget. Another luxury of
Electronic advertising is ‘Target Marketing’. This means that you can target your desired
group of customers based on a wide range of criteria such as age, location, gender and
religion, (Plus much more!)

Features :

• Published on the Internet.

• Electronic advertising provide a hyperlink that redirects to the company’s site.
• Can include animated movements in the advertisements.

2. What is search engine?

A search engine is a software program or script available through the Internet that

searches documents and files for keywords and returns the results of any files containing
those keywords. Today, there are thousands of different search engines available on the
Internet, each with their own abilities and features. The first search engine ever developed
is considered Archie, which was used to search for FTP files and the first text-based search
engine is considered Veronica. Today, the most popular and well-known search engine
is Google.

How a search engine works

Because large search engines contain millions and sometimes billions of pages, many
search engines not only just search the pages but also display the results depending upon
their importance. This importance is commonly determined by using various algorithms.
3. What is EDI

Refer to Q No : 4 from march 2015

4. What are the risks of E- payment system?

Tax Evasion
 Businesses are required by law to provide records of their financial transactions to
the government so that their tax compliance can be verified. Electronic payment however
can frustrate the efforts of tax collection.

Fraud

 Electronic payment systems are prone to fraud. The payment is done usually after
keying in a password and sometimes answering security questions. There is no way of
verifying the true identity of the maker of the transaction. As long as the password and
security questions are correct, the system assumes you are the right person.

Impulse Buying
 Electronic payment systems encourage impulse buying, especially online. You are
likely to make a decision to purchase an item you find on sale online, even though you had
not planned to buy it, just because it will cost you just a click to buy it through your credit
card. Impulse buying leads to disorganized budgets and is one of the disadvantages of
electronic payment systems.

Payment Conflict
 Payment conflicts often arise because the payments are not done manually but by
an automated system that can cause errors. This is especially common when payment is
done on a regular basis to many recipients. If you do not check your pay slip at the end of
every pay period, for instance, then you might end up with a conflict due to these technical
glitches, or anomalies.

5. Write about directories

A web directory or link directory is a directory on the World Wide Web. A collection of
data organized into categories [1] It specializes in linking to other web
sites and categorizing those links.[2]
A web directory is not a search engine and does not display lists of web pages based
on keywords; instead, it lists web sites by category and subcategory. [3] Most web directory
entries are also not found by web crawlers but by humans.[2] The categorization is usually
based on the whole web site rather than one page or a set of keywords, and sites are often
limited to inclusion in only a few categories. Web directories often allow site owners to
submit their site for inclusion, and have editors review submissions for fitness.
A Web directory organizes Web sites by subject, and is usually maintained by humans
instead of software. The searcher looks at sites organized in a series of categories and
menus. These collections of links are usually much smaller than search engines' databases,
since the sites are looked at by human eyes instead of by spiders.

There are two ways for sites to be included in a Web directory's listings; either the site
owner can submit the site by hand, or the directory's editor(s) will eventually come across
that site.

6. What is internet
The Internet, sometimes called simply "the Net," is a worldwide system of computer
networks - a network of networks in which users at any one computer can, if they have
permission, get information from any other computer (and sometimes talk directly to
users at other computers). It was conceived by the Advanced Research Projects Agency
(ARPA) of the U.S. government in 1969 and was first known as the ARPANet. The original
aim was to create a network that would allow users of a research computer at one
university to "talk to" research computers at other universities. A side benefit of
ARPANet's design was that, because messages could be routed or rerouted in more than
one direction, the network could continue to function even if parts of it were destroyed in
the event of a military attack or other disaster.

Today, the Internet is a public, cooperative and self-sustaining facility accessible to

hundreds of millions of people worldwide. Physically, the Internet uses a portion of the
total resources of the currently existing public telecommunication networks. Technically,
what distinguishes the Internet is its use of a set of protocols called TCP/IP (for
Transmission Control Protocol/Internet Protocol). Two recent adaptations of Internet
technology, the intranetand the extranet, also make use of the TCP/IP protocol.

7. What is HTML?

Refer to Q . No: 5 from March 2015

8. Write about SMTP.

Refer Q.No :3 from Model Paper III

 Part B
9 a) Write about importance of E – commerce

Refer Q. No: 9(a) from September 15

b) What is the impact of E- commerce on business models?

Refer Q. No: 1 from Unit I of Question Bank

10 a) Explain about encryption tech niques

Refer Q. No: 10(b) from March 14

b) Write about NTP, S-HTTP

Network Time Protocol (NTP)

Network Time Protocol (NTP) is a protocol that is used to synchronize computer clock
times in a network of computers. 

NTP uses Coordinated Universal Time (UTC) to synchronize computer clock times to a
millisecond, and sometimes to a fraction of a millisecond. UTC time is obtained using
several different methods, including radio and satellite systems. Specialized receivers are
available for high-level services such as the Global Positioning System (GPS) and the
governments of some nations. However, it is not practical or cost-effective to equip every
computer with one of these receivers. Instead, computers designated as primary time
servers are outfitted with the receivers and they use protocols such as NTP to synchronize
the clock times of networked computers. Degrees of separation from the UTC source are
defined as strata. A radio clock (which receives true time from a dedicated transmitter or
satellite navigation system) is stratum-0; a computer that is directly linked to the radio
clock is stratum-1; a computer that receives its time from a stratum-1 computer is
stratum-2, and so on.

Accurate time across a network is important for many reasons; even small fractions of a
second can cause problems. For example, distributed procedures depend on coordinated
times to ensure that proper sequences are followed. Security mechanisms depend on
coordinated times across the network. File system updates carried out by a number of
computers also depend on synchronized clock times. Air traffic control systems provide a
graphic illustration of the need for coordinated times, since flight paths require very
precise timing (imagine the situation if air traffic controller computer clock times were not
synchronized).

The term NTP applies to both the protocol and the client/server programs that run on
computers. The programs are compiled by the user as an NTP client, NTP server, or both.
In basic terms, the NTP client initiates a time request exchange with the time server. As a
result of this exchange, the client is able to calculate the link delay and its local offset, and
adjust its local clock to match the clock at the server's computer. As a rule, six exchanges
over a period of about five to 10 minutes are required to initially set the clock. Once
synchronized, the client updates the clock about once every 10 minutes, usually requiring
only a single message exchange. In addition to client/server synchronization, NTP also
supports broadcast synchronization of peer computer clocks. Unfortunately, the NTP
protocol can be exploited and used for denial of service (DoS) attacks because it will reply
to a packet with a spoofed source IP address and because at least one of its built-in
commands will send a long reply to a short request

S-HTTP (Secure HTTP)

S-HTTP (Secure HTTP) is an extension to the Hypertext Transfer Protocol (HTTP) that allows
the secure exchange of files on the World Wide Web. Each S-HTTP file is either encrypted,
contains a digital certificate, or both. For a given document, S-HTTP is an alternative to
another well-known security protocol, Secure Sockets Layer (SSL). A major difference is
that S-HTTP allows the client to send a certificate to authenticate the user whereas, using
SSL, only the server can be authenticated. S-HTTP is more likely to be used in situations
where the server represents a bank and requires authentication from the user that is more
secure than a userid and password

S-HTTP does not use any single encryptionsystem, but it does support the Rivest-Shamir-
Adleman public key infrastructure encryption system. SSL works at a program layer slightly
higher than the Transmission Control Protocol (TCP) level. S-HTTP works at the even higher
level of the HTTP application. Both security protocols can be used by a browser user, but
only one can be used with a given document. Terisa Systems includes both SSL and S-HTTP
in their Internet security tool kits.

11 a) Explain about electronic payment systems.

Refer to Q. No: 2 from Unit III of Question Bank.

b) Discuss about Mercantile process model from customer’s perspective

MERCANTILE MODELS FROM THE CONSUMER’S PERSPECTIVE:-

The online consumer expects quality, convenience, value, low price and control.
To meet these expectations, the business process model from consumer’s perspective
grouped seven activities into 3 phases.

Seven activities are 1)Pre-purchase determination

1)Product / service search

2)Product selection
3)Negotiations of terms
4) Placement of order 2)Purchases consumption
5)Authorization of payment
6)Receipt for payment
7)Customer service and support 3)Post purchase interaction

Basic Mercantile process model for any transaction online business.

1) Buyer contact vender to purchase product, through WWW, Email, Telephone etc.
2) Vender states price
3) Buyer and vender may or may not engage in negotiation.
4) If satisfy, a buyer authorized payment to the vendor with an encrypted transaction for
the agreed price.
5) Vendor contacts his or her billing service to verify the encrypted authorization for
authentication.
6) Billing service decrypts authorization and check buyer’s account balance and put hold
on the amount of transfer
7) Billing service gives the vendor the ‘green light’ to deliver products and sends a
standardize message giving details of transactions for merchants records.
8) On notification of adequate funds to cover financial transactions, vendor delivers the
goods to buyers.
9) On receiving the goods the buyers signs and delivers receipt. Vendor tells billing service
to complete the transactions.

10)All the end of billing cycle, buyer receive a transactions.

12 a) Write about : (i) Partial EDI (ii) Fully integrated EDI

PARTIALLY INTEGRATED EDI SYSTEMS

In partially Integrated system, the process begins the same as in a non – EDI system.
Example for Partially Integrated EDI Systems

PURCHASING SELLING

Purchasing requisition purchase order is electronically

Retrieved and sales order is automatically
generates.
Search vendor files
notification to pull goods from warehouse is sent elect or back order notice is generated
Select a vendor
Log on to system and fill out Electronic purchase order
goods are shipped invoice is prepared.
Receive invoice & verify accuracy after goods are shipped invoice is
prepared.
Prepare check & remittance advice Mail Invoice to customer
Mail check

Some steps are done manually like searching for vendor & selecting a vendor.
After selecting, rest of the steps I.e. purchase order, sales order etc. through VAN.
Then again preparing check, mailing check, under purchasing and shipping good, invoice
mailing to customer are done manually.

Advantages:-
1. The time from approving a purchase order to receipt of the purchase order and
preparation of the sales order by the vendor is typically reduced by as much as 3-7 days.
2. The no. of clerks to perform the entire cycle are reduced.
3. The possibility of clerical errors is also reduced as in the amount of paperwork
generated by duplicate copies.

FULLY INTEGRATED EDI SYSTEMS

Fully integrated EDI systems encompass electronic data sharing through out all aspects of
the purchasing and payment cycles.
1. The processing of the actual payment and remittance advice is called Financial EDI.
2. Fully integrated EDI, including financial EDI, provides firms with the greatest benefits in
terms of speed and accuracy.
3. Payment system also did in Electronic transfers funds.

b) What is the importance of EDI for large scale Business?

EDI continues to prove its worth as an electronic message data format. This research states
that “the annual volume of global EDI transactions exceeds 20 billion per year and is still
growing.”1 For buyers that handle numerous transactions, using EDI can result in millions
of dollars of annual savings due to early payment discounts. From a financial perspective
alone, there are impressive benefits from implementing EDI. Exchanging documents
electronically improves transaction speed and visibility while decreasing the amount of
money you spend on manual processes. But cost savings is far from the only benefit of
using EDI.

The major benefits of EDI for large scale business

 EDI can speed up your business cycles by 61%. Exchange transactions in minutes
instead of the days or weeks of wait time from the postal service
 Improves data quality, delivering at least a 30—40% reduction in transactions with
errors—eliminating errors from illegible handwriting, lost faxes/mail and keying and re-
keying errors
 Using EDI can reduce the order-to-cash cycle time by more than 20%, improving
business partner transactions and relationships
 Automating paper-based tasks allows your staff to concentrate on higher-value tasks
and provides them with the tools to be more productive
 Quick processing of accurate business documents leads to less re-working of orders,
fewer stock outs and fewer cancelled orders
 Automating the exchange of data between applications across a supply chain can
ensure that business-critical data is sent on time and can be tracked in real time. Sellers
benefit from improved cash flow and reduced order-to-cash cycles
 Shortening the order processing and delivery times means that organizations can
reduce their inventory levels
 Enables real-time visibility into transaction status. This in turn enables faster
decision-making and improved responsiveness to changing customer and market
demands, and allows businesses to adopt a demand-driven business model rather than a
supply-driven one
 Shortens the lead times for product enhancements and new product delivery
 Streamlines your ability to enter new territories and markets. EDI provides a
common business language that facilitates business partner onboarding anywhere in the
world
 Promotes corporate social responsibility and sustainability by replacing paper-based
processes with electronic alternatives. This will both save you money and reduce your CO2
emissions

13 a) Write about E- marketing Techniques.

Refer Q.No13 (b) from March 2014

b) Discuss about applications of 5 Ps

Refer to Q. No: 2 from Unit V of Question Bank.