E-COMMERCE LAB REPORT

Under The Guidance of:- Submitted by:-

Mrs. Tanu Gupta Hitesh Kumar
Department Of Management 09- MBA-116
GITM, Gurgaon MBA 4th sem

GURGAON INSTITUTE OF TECHNOLOGY & MANAGEMENT

E-COMMERCE LAB
PAPER CODE: 2402/51002

COURSE OBJECTIVE:

The objective of the course is to learn types, process of e- commerce, the

tools, channels and the related issues in implementing the ecommerce
practices.

SYLLABUS FOR LAB WORK:

Syllabus for lab work as per Maharshi Dayanand University, Rohtak

Internet Surfing of E commerce Sites.

LIST OF PRACTICALS

1. Introduction of Internet and Browser basics.

2. Introduction to E- commerce and list of E- commerce Websites with

their nature of activities.

3. Browse the internet and understand B2B, B2C, C2B, B2G mechanism
of
E-commerce.

4. Browse the internet to understand the mechanism of E-payment

system (with reference to India).

5. Browse the internet to understand the mechanism of online railway

ticket booking.

6. Browse the internet to understand the mechanism of online air ticket

booking.

7. Browse the internet and understand the mechanism of e shopping.

8. Browse the internet to understand the E- procurement practices

between B2B
E-commerce in India.

9. Browse the internet and study of E-employment strategies/practices

(e-recruitment & e- selection).

10.Browse the internet & understand the security mechanism.

11.Browse the internet and explain the application of e-commerce in our

day to day life.
12.Browse the internet and understand the mechanism of Internet
Retailing.
 TABLE OF CONTENTS

SIGNA REM
S No. Experiment TURE ARK
S
1. Introduction of Internet and Browser basics.

2. Introduction to E- commerce and list of E-

commerce Websites with their nature of

activities.

3. Browse the internet and understand B2B, B2C,

C2B, B2G mechanism of
E-commerce.

4. Browse the internet to understand the

mechanism of E-payment system
(with reference to India).

5. Browse the internet to understand the

mechanism of online railway ticket booking.

6. Browse the internet to understand the

mechanism of online air ticket booking.

7. Browse the internet and understand the

mechanism of e shopping.

8. Browse the internet to understand the E-

procurement practices between B2B
E-commerce in India.

9. Browse the internet and study of E-employment

strategies/practices (e-recruitment &
e- selection).
 10.Browse the internet & understand the security
mechanism.

11.Browse the internet and explain the application

of e-commerce in our day to day life.

12.Browse the internet and understand the

mechanism of Internet Retailing.

EXPERIMENT -1

INTRODUCTION OF INTERNET AND BROWSER BASICS

1-Introduction:

By the turn of the century, information, including access to the Internet, will
be the basis for personal, economic, and political advancement. The popular
name for the Internet is the information superhighway. Whether you want to
find the latest financial news, browse through library catalogs, exchange
information with colleagues, or join in a lively political debate, the Internet
is the tool that will take you beyond telephones, faxes, and isolated
computers to a burgeoning networked information frontier. 
The Internet supplements the traditional tools you use to gather information,
Data Graphics, News and correspond with other people. Used skillfully, the
Internet shrinks the world and brings information, expertise, and knowledge
on nearly every subject imaginable straight to your computer. 

What is Internet?

The Internet or Net was launched in 1969 when the United States funded a
project that developed a national computer network called Advanced
Research Project Agency Network (ARPANET). The Internet is a large
network that connects together smaller networks all over the globe. The
Web, also known as WWW and the World Wide Web, was introduced in
1992 at the Center for European Nuclear Research (CERN) in
Switzerland. Prior to the web, the Internet was all text – no graphics,
animations, sound, or video. The Web made it possible to include these
elements. It provided a multimedia interface to resources available on the
Internet.

Many people got confused between Internet and Web. They think both are
same, but no both are not same. The Internet is the actual physical network.
It is made up of wires, cables and satellites. Being connected to this net,
work is often being described as being online. The Internet connects
millions of computers and resources throughout the world. The Web is a
multimedia interface to the resources available on the Internet. Every day
over a billion users from every part of world use the Internet and the Web.
What are they doing? The most common uses are the following:

Communicating is most popular use of Internet. You can exchange e-mail

with your family and friends almost anywhere in the world. You can join
and listen to discussion and debates on a wide variety of special-interest
topics. You can even create your own personal Web page for Friends and
family to visit.

Shopping is one of the fastest growing Internet applications. You can visit
individual stores or a cybermall, which provides access to a variety of
different stores. You can window shop, look for the latest fashions, search
for bargains, and make purchases. You can purchase goods using checks,
credit cards or online money transfers.

Searching for information has never been easy and convenient. You can
access some of the world’s largest libraries directly from your home
computer. You can visit virtual libraries, search through their stacks, read
selected items, and even check out books. You will also find the latest local,
national and international news. Most newspapers maintain an online
presence.

Entertainment options are nearly endless. You can find music, movies,
magazines and computer games. You will also find live concerts, movie
previews, book, clubs and interactive live games.

Education or e-learning is another rapidly emerging Web application. You

can take classes on almost any subject. There are courses just for fun and
there are courses for high school, college and graduate school credit. Some
cost nothing while some costs a lot.

So I think we have understood what is Internet all about. Let’s also quickly
learn how to use the Internet. Do the following steps.

1. Start browser: Typically, all you need to do is double click the browser’s
icon on the desktop.

2. Enter URL: In the browser’s location box, type the URL (Uniform
Resource Location, or address) of the Internet or Web location (site) that you
want to visit.

3. Press ENTER: On your keyboard, press the ENTER key to connect to

the site.

4. Read and explore: Once connected to the site, read the information
displayed on your monitor. Using the mouse, move the pointer on the
monitor. When the pointer changes from an arrow to a hand, click the mouse
button to explore other locations.

5. Close browser: Once you are done exploring, click on your browser’s
CLOSE button.
So get set and go to the world of Internet and Web and explore your
knowledge.

History & Development of the Internet:-

In its infancy, the Internet was originally conceived by the Department of

Defense as a way to protect government communications systems in the
event of a military strike. The original network, dubbed ARPA net (for the
Advanced Research Projects Agency that developed it) evolved into a
communications channel among contractors, military personnel, and
university researchers who were contributing to ARPA projects. 
The network employed a set of standard protocols to create an effective way
for these people to communicate and share data with each other. 
ARPA net's popularity continued to spread among researchers, and in the
1980's the National Science Foundation, whose NSF Net, linked several high
speed computers, took charge of the what had come to be known as the
Internet. 
By the late 1980's, thousands of cooperating networks were participating in
the Internet. 
In 1991, the U.S. High Performance Computing Act established the NREN
(National Research & Education Network). NREN's goal was to develop and
maintain high-speed networks for research and education, and to investigate
commercial uses for the Internet. 
The rest, as they say, is history in the making. The Internet has been
improved through the developments of such services as Gopher and the
World Wide Web. 
Even though the Internet is predominantly thought of as a research oriented
network, it continues to grow as an informational, creative, and commercial
resource every day and all over the world. 

Who Pays for the Internet?

There is no clear answer to this question because the Internet is not one
"thing", its many things. No one central agency exists that charges individual
Internet users. Rather, individuals and institutions that use the Internet pay a
local or regional Internet service provider for their share of services. And in
turn, those smaller Internet service providers might purchase services from
an even larger network. So basically, everyone who uses the Internet in
some way pays for part of it. 
2-what makes the internet work? 

The unique thing about the Internet is that it allows many different
computers to connect and talk to each other. This is possible because of a set
of standards, known as protocols that govern the transmission of data over
the network: TCP/IP (Transmission Control Protocol/Internet Protocol).
Most people who use the Internet aren't so interested in details related to
these protocols. They do, however, want to know what they can do on the
Internet and how to do it effectively. 

The Client/Server Model:

The most popular Internet tools operate as client/server systems. You're

running a program called a Web client. This piece of software displays
documents for you and carries out your requests. If it becomes necessary to
connect to another type of service--say, to set up a Telnet session, or to
download a file--your Web client will take care of this, too. Your Web client
connects (or "talks") to a Web server to ask for information on your behalf.

The Web server is a computer running another type of Web software which
provides data, or "serves up" an information resource to your Web client. 

All of the basic Internet tools--including Telnet, FTP, Gopher, and the
World Wide Web--are based upon the cooperation of a client and one or
more servers. In each case, you interact with the client program and it
manages the details of how data is presented to you or the way in which you
can look for resources. In turn, the client interacts with one or more servers
where the information resides. The server receives a request, processes it,
and sends a result, without having to know the details of your computer
system, because the client software on your computer system is handling
those details. 
The advantage of the client/server model lies in distributing the work so that
each tool can focus or specialize on particular tasks: the server serves
information to many users while the client software for each user handles the
individual user's interface and other details of the requests and results. 

The Use of Local Clients:

Every computer should be equipped with basic client software packages that
allow you to perform functions such as electronic mail, Telnet, Gopher, and
FTP. 
Electronic mail on the internet:

Electronic mail, or e-mail, is probably the most popular and widely used
Internet function. E-mail, email, or just mail, is a fast and efficient way to
communicate with friends or colleagues. You can communicate with one
person at a time or thousands; you can receive and send files and other
information. You can even subscribe to electronic journals and newsletters.
You can send an e-mail message to a person in the same building or on the
other side of the world.
How does E-mail Work?

E-mail is an asynchronous form of communication, meaning that the person

whom you want to read your message doesn't have to be available at the
precise moment you send your message. This is a great convenience for both
you and the recipient.

On the other hand, the telephone, which is a synchronous communication

medium, requires that both you and your listener be on the line at the same
time in order for you to communicate (unless you leave a voice message). It
will be impossible to discuss all the details of the many e-mail packages
available to Internet users. 
Fortunately, however, most of these programs share basic functionality
which allows you to: 
     *send and receive mail messages 
     *save your messages in a file 
     *print mail messages 
     *reply to mail messages 
     *attach a file to a mail message 
Browser Basics
A web browser is the tool that you use to
access
the World Wide Web. In order to get the most
out of the Web, it's important to understand
the various features of a browser.

Common Web Browsers

Today, Internet Explorer is the most popular web browser. Other
browsers include Firefox, Chrome, Safari, and Opera. Each one has its
own look and feel, but they have the same goal: to display web pages
correctly. For most web pages, any well-known browser will work.
Internet Explorer

Firefox
Chrome

Like most modern programs, browsers use a Graphical User Interface

(GUI), which means you can navigate by pointing and clicking with a
mouse instead of just typing. Some devices such as mobile phones use
different types of GUIs, such as touch screens. However, many of the
principles remain the same.

EXPERIMENT- 2

Introduction to E- commerce and list of E- commerce Websites with

their nature of activities.

E- Commerce is the division of electronic business and is the process of

buying or selling over internet, much like marketing but on the internet.
Initially when Tim Berners-Lee programmed the internet, e-commerce was
mainly meant to do Electronic Fund Transfer (EFT) and Electronic Data
Interchange (EDI). Later as the internet developed the e-commerce also had
developed. And with the development of E-Commerce the Federal Trade
Commission (FTC) started regulating the activities of E-Commerce. E-
Commerce includes anything from buying a virtual content for instant
implementation to buying goods for domestic purposes. 
  
E-commerce is can be further categorized into the following: 
  

 Business -to -Business (B2B)

 Business- to- Customer (B2C)
 Consumer-to-Business (C2B )
 Consumer- to -consumer (C2C)

Business to business is one in which a company deals with another

company for business and exchanging of goods, products, services. Some of
the examples of b2b e-commerce sites are a company's official site,
brokering sites etc. 
  
Business to customer is one where the company sells its goods to the
customer or trades with the customers. This is electronic retailing and called
as e-tailing in common. One of the best examples is amazon.com. 
  
Consumer to business is when a customer works for a certain company for
business and the company buys it, here the consumer has to price the trade.
Example for such a site is priceline.com 
  
Consumer to consumer is more like auctioning, bartending, etc... Where a
consumer places bid and other buys it. Here the websites acts an
intermediate for the business Example for such sites is eBay. 
  
E-Commerce provides advantages to both the Business provider, consumers.
For the business it is provides easier way to market a particular product at
low cost and also the product easily reaches the global market. For the
consumers they can buy products from home, so no tedious work in buying
and they can trade any time. E-commerce thus is a greater benefit provided it
has ultimate security.

List of E-commerce Websites

E-commerce or Electronic commerce has become a very popular form of

transaction in today's world. Now buyers want to purchase goods and
services online rather than visiting the shops and making selections. The
biggest advantage enjoyed by E-commerce is its 24*7 connectivity which is
not present in normal transactional selling. Bestindiansites.com enlists top
five Indian websites dealing with E-commerce 

cyberwebglobal.com 

Want to know the basics of e-commerce? Then this website is a must visit
for you. This website takes pain in describing the meaning, basic
fundamentals, process and other minute details about e-commerce. It also
discusses several associated concepts of e-commerce, like e-business, value
chains and real time credit. The biggest offerings of this site are its
instructions regarding the development of an ideal e-commerce website. It is
also into the business of developing e-commerce portals for other business
houses. 

khoj.com 

Khoj.com is a very popular Indian web directory. The e-commerce section

of this site provides several important information regarding the e-commerce
rules as laid by the Ministry of Commerce of India. This website also
provides a list of other e-commerce portals like walletwatch.com,
paygateindia.com, seekandsource.com. Dotlinedesigns.com and many more.
So if you are interested in e-commerce, but not getting the concerned
website of your liking, khoj.com is sure to serve your purpose. 

Sifycorp.com

Sify is one of the most renowned end to end e-solutions providing company
in India. They offer specialized services in designing and developing an
array of customized e- commerce and network connectivity system. They
endeavor incessantly to provide you with a network connectivity solution
that connects your critical business systems and offers a smooth data
network directly with customers, vendors and staff.

EBay. in
Formerly known as bazee.com, eBay. in today is one of the largest e-
commerce websites of India. This website has a huge list of products and
services on offer to all its prospective customers. Its product line can be
divided into several categories like apparels, accessories, electronic gizmos,
cars and bikes, fitness and sports, home appliances and many more. Another
advantage of using this site is that apart from normal electronic purchase, it
is also encourages you to sell your products online 

shopping.rediff.com

It is the e-commerce portal of rediff.com which is known for its unique

offerings and cheapest of prices. The products which are on offer here are of
several categories like apparels, books , cars & bikes, electronic products,
gift products, home appliances and many more. This e-commerce portal also
has a separate section called “best discounts” where only those items are
displayed upon which more than normal discount have been allotted. Here
you can also find a list of the popular brands, whose products are on offer in
this e-commerce portal. 

Intermesh.net

Intermesh India is one of the forerunners of e-business in India. It has been

involved in the promotion of e-commerce or business in the internet. They
offer a host of services like the y offer end to end payment solution to their
customers with the help of their online payment gateway
ABCpayments.com. Their business enhancement services are aimed at
making profitable return for their customer by augmenting their sales. 

futurebazaar.com

Futurebazaar.com is indeed one of the largest Indian e-commerce websites

partnered by Big Bazaar, a leading departmental stores of India. Here you
can find a wide variety of shopping items like apparel, books, cameras,
consumer durables, kitchen appliances, laptops, mobile phones and many
more. On some selected products, this e-commerce portal provides up to
50% discount. If you want to experience state of the art shopping experience
coupled with the best bargains you are bound to visit this e-commerce
website. 

Gigasoft.in

This is a company which extends e business development or e-commerce

development services. This is a company which does an array of jobs like
they construct Dynamic websites and they make online product catalogs to
augment the e-business of their clients. They also experience in hosting e-
commerce website and along with that they also offer services for content
management. For all you e-commerce related needs do visit this one stop
site.

Synapse.com

Synapse is a renowned which compiles communications, data management

and security to offer clients e-commerce solutions to businesses worldwide.
Synapse also provides its customer's competitive, effective B2B & B2C e-
solutions involving reduced transaction fees, real-time tracking of
transactions; e-tailing of products; secure electronic transactions and the
remote management of logistics, including the tracking of users, processes
and information. 

Stylusinc.com 

This is a gem of a site for those who want to glean information on e-

commerce. It elaborates on comes under the purview of e-commerce. Then it
goes on to delineate the quintessential features of a e-store and what are the
methods a e-business operates. It also sums up the kinds of business houses
who might benefit from the growing fad of e-commerce and make a profit in
this scenario. This is site from where you can also get information on the
kind of infrastructure you need to start your own e-business.
 EXPERIMENT-3

Browse the internet and understand B2B, B2C, C2B, B2G mechanism
of E-commerce.

1. B 2 B:

A list of Business-to-business (B2B) describes commerce transactions

between businesses, such as between a manufacturer and a wholesaler, or
between a wholesaler and a retailer. Contrasting terms are business-to-
consumer (B2C) and business-to-government (B2G).
The volume of B2B (Business-to-Business) transactions is much higher than
the volume of B2C transactions. The primary reason for this is that in a
typical supply there will be many B2B transactions involving sub
components or raw materials, and only one B2C transaction, specifically
sale of the finished product to the end customer. For example, an automobile
manufacturer makes several B2B transactions such as buying tires, glass for
windscreens, and rubber hoses for its vehicles. The final transaction, a
finished vehicle sold to the consumer, is a single (B2C) transaction.
B2B is also used in the context of communication and collaboration. Many
businesses are now using social media to connect with their consumers
(B2C); however, they are now using similar tools within the business so
employees can connect with one another. When communication is taking
place amongst employees, this can be referred to as "B2B" communication.

So here is the List:

 Alibaba
 Made In China
 Trade Key
 TTnet
 TDCTrade
 Exporters.sg
 Importers.com
 AllProducts.com
 BusyTrade.com
 MofCOM
 ECPlaza.net
 Asiannet
 Kelly Search
 MesseFrankfurt
B 2 C:

B2C (Business to Consumer): Refers to a business communicating with or

selling to an individual rather than a company. B2C e-commerce jumped
from $11.2 billion in 1998 to $31.2 billion in 1999,

Doing business online no longer requires a huge investment by retailers,

thanks to developments in template-based online stores which are based on
packaged applications that are delivered over the internet.

As nearly all online stores will require the same functions: catalogues, order
baskets, payment processing, content management and member
management, it makes sense for those components to be created once and
shared by all stores, with each store effectively ‘renting’ its own copy of the
applications.

The one area where it's important for online stores to differentiate is their
look and feel, and naturally retailers feel very strongly about their business
branding. So the ability to create a unique ‘skin’ for each site is an important
part of a template-based e-store offering.

Using the latest internet application technology, individual sites can be

created within minutes of the retailer selecting a template and supplying
graphics such as logos. Typically, retailers will pay only a modest monthly
rental charge – and retailers require no specialist hardware or software, other
than internet access.

Anyone who wants to sell products and services over the internet, or who
wants customers to be able to research their purchases on the internet, should
consider an online store.

These days, a web site should be a standard part of the promotional and
advertising mix for every business, along with other tools such as Yellow
Pages, newspaper advertising and signage.
Advantages of B2C e-commerce
B2C e-commerce has the following advantages:

 Shopping can be faster and more convenient.

 Offerings and prices can change instantaneously.
 Call centers can be integrated with the website.
 Broadband telecommunications will enhance the buying experience.

Challenges faced by B2C e-commerce

The two main challenges faced by B2C e-commerce are building traffic and
sustaining customer loyalty. Due to the winner-take-all nature of the B2C
structure, many smaller firms find it difficult to enter a market and remain
competitive. In addition, online shoppers are very price-sensitive and are
easily lured away, so acquiring and keeping new customers is difficult.

C2B (Consumer-to-Business)
A consumer posts his project with a set budget online and within hours
companies review the consumer's requirements and bid on the project. The
consumer reviews the bids and selects the company that will complete the
project. Elance empowers consumers around the world by providing the
meeting ground and platform for such transactions.

C2C (Consumer-to-Consumer)
There are many sites offering free classifieds, auctions, and forums where
individuals can buy and sell thanks to online payment systems like PayPal
where people can send and receive money online with ease. EBay’s auction
service is a great example of where person-to-person transactions take place
everyday since 1995.

Campus18.com
The website offers students, across India, the means to interact with one
another. The website includes the whole gamut of social networking features
from profile creation, member search, to blogs, discussion forums,
rating/commenting system, internal messaging, audio/video streaming
etc. Read more about the work done.

Myauntyji.com
The website offers an online dating service wherein people can register with
the website, for free, to list their profiles and find partners. A subscription
can be purchased in order to communicate with other members. Tools such
as instant messenger, an internal messaging system etc can be used to by
members to communicate with one another. Web based back-office
interfaces can be used by the administrator to manage and operate the dating
services. Browse through the project case study for a detailed description.
 EXPERIMENT – 4

Browse the internet to understand the mechanism of E-payment

system (with reference to India).

C2B Online Payment System

C2B stands for "Customer to Business" , and is an exciting new addition to

the many services we provide our customers. C2B enables customers to pay
for virtually any type of invoice they may have, ONLINE, from the comfort
of their homes. That means that customers who used to have to come to the
store or mail in checks and coupons to pay for balances on their Music Den
account, can now:

 Pay for Lessons

 Pay for Rentals
 Pay for Repairs
 Pay for Items on Hold

All using the C2B system through

this website!
How do I begin?

1. Create An Account
To start using the C2B
system, customers first need
to create an account on the
www.TheMusicDen.com
website. Even though you
may already have an in-store
account, a web account still
must be setup. If you have
ever purchased any thing
from this website, you
already have an account
setup. ***Click here to
create an account now***

2. Request C2B Service

Next, you will have to
submit a request through this
website to be included in our
C2B system. To do this you
will need to know you’re in-
store Music Den account
number. You can find this
number printed on receipts
you may have gotten from
purchases or payments at a
Music Den store. You can
also call our store at 1-800-
479-1189, and one of our
Sales Representatives can tell
you your account number. 
***Click here to Request
C2B service now***

3. Wait for the Request to be

processed
 Once your request has been
submitted it will need to be
processed by the Music Den
and linked to your in-store
account. When your request
has been processed you will
receive an email notifying
you that you can start using
C2B. Most requests will be
processed by the next
business day.

4. Start using C2B!!!

You are now ready to begin
using C2B! From the "My
Account" drop down menu
you will see two options:
C2B-Check History and
C2B-Make Payment.

C2B-Check History

"C2B-Check History" allow you to view any Music Den invoices you may
have. Just enter a beginning and ending date range and click "Get
History."(Note: Please use the date format mm/dd/yyyy when entering
dates.) This will present you with a list of invoices that correspond to the
dates entered for the account. Individual invoices can be clicked on to get
more information.***Click here to go to C2B-Check History now***
C2B-Make Payment

"C2B-Make Payment" allow you to see your current outstanding balances

and make payments to those balances online using your credit card. Just
check which balances you want to pay, enter the amount and credit card
information, and press "Post Payment". ***Click here to go to C2B-Make
Payment now***
 EXPERIMENT – 5

Browse the internet to understand the mechanism of online railway ticket

booking.

IRCTC Online Passenger Reservation System

IRCTC's Online Passenger Reservation System provides booking facility of

Railway tickets online and offers other services like checking reservation
status.
Procedure of Registration

Click on sign up for free online registration.

A dialog box will be appearing as shown below.

Now we have to fill necessary information. Such as..
Now click on submit after fill all necessary information…

Now, after the registration the procedure to book a online ticket as follow---
 Register as an individual. Registration is FREE.
 Login by entering your user name and password.

 The "Plan my travel" page appears.

 If the From/To station selected by you are correct in the route of the train
then :
 Select e-Ticket option.
 Select the type of Quota
Now make a entry of from Delhi All Station to Kopargaon.

 To find train list, click on "Find Trains" option.

 The List of Trains show the number of trains available for that route.
 If you wish to know the route and the timings, click on the train name
under the "List of Trains" option.
 To get the fare; click on class available in the selected train under "List of
Trains". It will show fare according to type of class selected. The fare
appearing is for a single adult Passenger excluding the service charges
charged by IRCTC and by the Bank (Credit Card/Direct Debit).
 To select the train from the train list, click on the type of class available
in the selected train.

 If you will click on the class in the train list then it will show the train
details with availability.
 To book tickets, click on "Book" button under availability option.
 If you wish to select other train, click on "RESET" button.
Now we choose one date on which we have to travel.
The "From" Station we have selected does not exist on the route of the Train
Or this
station has been deleted. So we have to select "From" station from the Train
route shown below. We select the Delhi NDLS station and click on book
option of 16/04/2011 availability date.
 Ticket reservation page appears; check whether the train name and the
station names displayed on the top of the page are same as desired by you.
 Enter the names of the Passengers, age, sex and berth preference for each
Passenger. The maximum length of names should be restricted to 15
characters. If the Passenger is a senior citizen (60 yrs and above) and wants
to avail Senior Citizens' concession (30% of Base fare), click the box
provided. Senior citizens are requested to carry some proof of age during
their journey. A sample form is reproduced below. (The allotment of your
required berth depends on the availability)
And click on go .
The ticket details, availability of tickets at the particular time and the fare,
including the service charge, appear on the screen, along with the payment
option Follow the instructions.

Click on the button "Make Payment" and a pop-up window will give the list
of payment options. Please choose one of the modes of payment. Please
click on the payment option below for help regarding the payment procedure
through each of these options.
 After successful payment and booking of accommodations, the User is
shown the ticket confirmation details along with a “Print Reservation
Slip” Button. On clicking the button ERS is shown with an option to
print.
 The customers can subsequently also print Electronic Reservation Slip
from the 'BOOKED TICKETS' link on the left navigation bar.
 If you require to book return ticket, click "BOOK RETURN TICKET"
and you will be taken again to "Plan my Travel" page with the from
and to station swapped.
 EXPERIMENT – 6

Browse the internet to understand the mechanism of online air ticket

booking.
 EXPERIMENT – 7

Browse the internet and understand the mechanism of e shopping.

What is online shopping ?

The use of computers and internet have been expanding significantly over
the years. Presently internet has been used widely as a means of
communication, as a potential source of information, as a means of
entertaintment and many more. With in few years after existence of
internet, business men realized the possibilities of using internet as a
medium of business. This idea kick started the first online business
ventures.

Modern technology has been developed to the extent that even shopping
made possible over the internet. The process of shopping done over the
internet is called online shopping. Both products and services can be
purchased by online shopping. Online shopping is used for business to
business transactions or business to customer transactions with applications
of electronic commerce. ( eCommerce )

EXPERIMENT – 8

Browse the internet to understand the E- procurement practices between

B2B E-commerce in India
What are the different types of e-commerce?
The major different types of e-commerce are: business-to-business (B2B); businessto-
consumer (B2C); business-to-government (B2G); consumer-to-consumer (C2C);
and mobile commerce (m-commerce).
What is B2B e-commerce?
B2B e-commerce is simply defined as e-commerce between companies. This is the
type of e-commerce that deals with relationships between and among businesses.
About 80% of e-commerce is of this type, and most experts predict that B2B ecommerce
will continue to grow faster than the B2C segment.
The B2B market has two primary components: e-frastructure and e-markets. Efrastructure
is the architecture of B2B, primarily consisting of the following:9
● logistics - transportation, warehousing and distribution (e.g., Procter and Gamble);
● application service providers - deployment, hosting and management of packaged
software from a central facility (e.g., Oracle and Linkshare);
● outsourcing of functions in the process of e-commerce, such as Web-hosting,
security and customer care solutions (e.g., outsourcing providers such as
eShare, NetSales, iXL Enterprises and Universal Access);
● auction solutions software for the operation and maintenance of real-time auctions
in the Internet (e.g., Moai Technologies and OpenSite Technologies);
● content management software for the facilitation of Web site content management
and delivery (e.g., Interwoven and ProcureNet); and
● Web-based commerce enablers (e.g., Commerce One, a browser-based, XMLenabled
purchasing automation software).
E-markets are simply defined as Web sites where buyers and sellers interact with
each other and conduct transactions.10
The more common B2B examples and best practice models are IBM, Hewlett
Packard (HP), Cisco and Dell. Cisco, for instance, receives over 90% of its product
orders over the Internet.
Most B2B applications are in the areas of supplier management (especially purchase
order processing), inventory management (i.e., managing order-ship-bill
cycles), distribution management (especially in the transmission of shipping documents),
channel management (i.e., information dissemination on changes in operational
conditions), and payment management (e.g., electronic payment systems
or EPS).11
eMarketer projects an increase in the share of B2B e-commerce in total global ecommerce
from 79.2% in 2000 to 87% in 2004 and a consequent decrease in the
share of B2C e-commerce from 20.8% in 2000 to only 13% in 2004.

What is B2C e-commerce?

Business-to-consumer e-commerce, or commerce between companies and consumers,
involves customers gathering information; purchasing physical goods (i.e., tangibles
such as books or consumer products) or information goods (or goods of electronic
material or digitized content, such as software, or e-books); and, for information
goods, receiving products over an electronic network.12
It is the second largest and the earliest form of e-commerce. Its origins can be
traced to online retailing (or e-tailing).13 Thus, the more common B2C business
models are the online retailing companies such as Amazon.com, Drugstore.com,
Beyond.com, Barnes and Noble and ToysRus. Other B2C examples involving information
goods are E-Trade and Travelocity.
The more common applications of this type of e-commerce are in the areas of
purchasing products and information, and personal finance management, which
pertains to the management of personal investments and finances with the use of
online banking tools (e.g., Quicken).14
12
eMarketer estimates that worldwide B2C e-commerce revenues will increase from
US$59.7 billion in 2000 to US$428.1 billion by 2004. Online retailing transactions
make up a significant share of this market. eMarketer also estimates that in the Asia-
Pacific region, B2C revenues, while registering a modest figure compared to B2B,
nonetheless went up to $8.2 billion by the end of 2001, with that figure doubling at the
end of 2002-at total worldwide B2C sales below 10%.
B2C e-commerce reduces transactions costs (particularly search costs) by increasing
consumer access to information and allowing consumers to find the most competitive
price for a product or service. B2C e-commerce also reduces market entry barriers since
the cost of putting up and maintaining a Web site is much cheaper than installing a
“brick-and-mortar” structure for a firm. In the case of information goods, B2C e-commerce
is even more attractive because it saves firms from factoring in the additional cost
of a physical distribution network. Moreover, for countries with a growing and robust
Internet population, delivering information goods becomes increasingly feasible.
What is B2G e-commerce?
Business-to-government e-commerce or B2G is generally defined as commerce between
companies and the public sector. It refers to the use of the Internet for public
procurement, licensing procedures, and other government-related operations. This kind
of e-commerce has two features: first, the public sector assumes a pilot/leading role in
establishing e-commerce; and second, it is assumed that the public sector has the
greatest need for making its procurement system more effective. 15
Web-based purchasing policies increase the transparency of the procurement process
(and reduces the risk of irregularities). To date, however, the size of the B2G ecommerce
market as a component of total e-commerce is insignificant, as government
e-procurement systems remain undeveloped.
What is C2C e-commerce?
Consumer-to-consumer e-commerce or C2C is simply commerce between private
individuals or consumers.
This type of e-commerce is characterized by the growth of electronic marketplaces
and online auctions, particularly in vertical industries where firms/businesses can
bid for what they want from among multiple suppliers.16 It perhaps has the greatest
potential for developing new markets.
This type of e-commerce comes in at least three forms:
● auctions facilitated at a portal, such as eBay, which allows online real-time bidding
on items being sold in the Web;
● peer-to-peer systems, such as the Napster model (a protocol for sharing files
between users used by chat forums similar to IRC) and other file exchange and
later money exchange models; and
13
● classified ads at portal sites such as Excite Classifieds and eWanted (an interactive,
online marketplace where buyers and sellers can negotiate and which
features “Buyer Leads & Want Ads”).
Consumer-to-business (C2B) transactions involve reverse auctions, which empower
the consumer to drive transactions. A concrete example of this when competing
airlines gives a traveler best travel and ticket offers in response to the traveler’s
post that she wants to fly from New York to San Francisco.
There is little information on the relative size of global C2C e-commerce. However,
C2C figures of popular C2C sites such as eBay and Napster indicate that this market
is quite large. These sites produce millions of dollars in sales every day.
What is m-commerce?
M-commerce (mobile commerce) is the buying and selling of goods and services
through wireless technology-i.e., handheld devices such as cellular telephones and
personal digital assistants (PDAs). Japan is seen as a global leader in m-commerce.
As content delivery over wireless devices becomes faster, more secure, and scalable,
some believe that m-commerce will surpass wireline e-commerce as the
method of choice for digital commerce transactions. This may well be true for the
Asia-Pacific where there are more mobile phone users than there are Internet users.
Industries affected by m-commerce include:
● Financial services, including mobile banking (when customers use their
handheld devices to access their accounts and pay their bills), as well as brokerage
services (in which stock quotes can be displayed and trading conducted
from the same handheld device);
● Telecommunications, in which service changes, bill payment and account
reviews can all be conducted from the same handheld device;
● Service/retail, as consumers are given the ability to place and pay for orders
on-the-fly; and
● Information services, which include the delivery of entertainment, financial
news, sports figures and traffic updates to a single mobile device. 17
Forrester Research predicts US$3.4 billion sales closed using PDA and cell phones
by 2005 .
 EXPERIMENT – 9

Browse the internet and study of E-employment strategies/practices (e-

recruitment & e- selection).

E-Recruitment
Despite the rapid growth in the use of e-recruitment methods
and technologies in recent years, there has been little research looking
at the practices of Irish organisations in this area. This report focuses
on the practices and experiences of Irish employers in relation to e-
recruitment, and encompasses public and private sector perspectives in
addition to making international comparisons where appropriate. By
gaining an understanding of the advantages and challenges associated
with the different approaches that are available and being used, a better
understanding can be reached on how to optimise the use of e-
recruitment systems in Ireland.

The main aims of this research were to:

 establish the overall trends in e-recruitment use and practice in Ireland

  identify what e-recruitment methods are being used, and what the
experiences are of organisations trying to implement e-recruitment
 establish how organisations are evaluating their e-recruitment
initiatives, and establish the level of success being experienced.

There were several key strands to this project, including a survey of a broad
sample of Irish organisations to establish the extent to which e-recruitment
was being used, and a series of meetings with case study organisations in
order to gather more in-depth information on the approaches implemented
and the impact of introducing e-recruitment.

In addition, interviews were held with a number of e-recruitment technology

vendors to obtain information on the web-enabled products/solutions they
provide, and on their views on likely future developments in this area.

A review of e-recruitment in other countries was also carried out in order to

compare the findings from this study, with what is happening in an
international context.

The research is aimed at HR practitioners or others involved in implementing

e-recruitment, and is likely to be of interest to practitioners new to the area,
as well as those already experienced in using e-recruitment methods. In
addition to highlighting the key trends in the current use of e-recruitment in
Ireland, a discussion of likely future developments in the area is also
provided.

Trends in e-recruitment

The recruitment landscape both internationally and in Ireland has changed

significantly in recent years. Online recruitment has now become a
significant part of the recruitment strategy for a wide range of organisations
world-wide, in addition to becoming an increasingly popular method for job-
seekers in searching and applying for jobs.

Figure 1: Typical processes involved in recruiting staff

Source: IES, 2005

Figure 1 illustrates the typical processes involved in recruiting staff. The

Internet can be used to facilitate any or all of the main processes of:
attraction (advertising/recruiting), selection and assessment (screening and
testing), and on-boarding (offering and closing, induction). In addition, e-
recruitment can be used, in parallel, to support applicant tracking and
workflow systems.

E-recruitment in the Irish context

The findings of the research show that the use of e-recruitment in Ireland is
broadly on a par with what is happening in the UK and North America,
although it appears to be less advanced in some areas, in particular in relation
to the use of the Internet for selection testing.

Online recruitment is an important part of the recruitment strategy for a large

majority of the Irish organisations surveyed. A significant proportion of Irish
organisations are using the Internet to facilitate the recruitment process in
some way, but many are using e-enabled processes alongside traditional
methods rather than relying solely on e-recruitment.

The most significant progress has been made in using online methodologies
at the front end of the recruitment process, in terms of advertising posts and
receiving application forms. Increasing numbers of Irish organisations are
also using Internet-based technology to track applications and communicate
with and manage relationships with applicants.

The use of online tools for screening and assessing candidates is less
prevalent among Irish organisations, but there is evidence that this practice is
set to grow in the future, and that this facility will become increasingly
valuable to organisations as greater use of online advertising attracts larger
numbers of applications.

Table 1, below, summarises how the survey respondents currently use or

plan to use the internet for a range of recruitment activities.

Table 1: Activities/processes undertaken online (n=83)

  % % Plan % No
Use to plans
implement
1. Describe and advertise vacancies 88 6 6
online
2. Post jobs on free internet job 43 8 49
boards
3. Have dedicated recruitment 67 17 17
website/page
4. Post jobs on recruitment agency 44 6 51
sites
5. Respond to requests for further 61 11 28
info online
6. Track sources of online 35 18 47
applications
7. Build database for future 28 13 59
vacancies
8. Applications completed online 34 25 41
9. Offer online self selection exercises 10 12 78
10. Initial screen on qualifications 24 16 60
online
11. Initial screen competencies online 13 13 71
12. Use personality tests at initial 7 6 87
screen
13. Use online test at assessment stage 3 7 89
 14. Invite candidates to interview 25 13 61
online
15. Notify non-selected candidates 27 13 60
online
16. Make job offers online 10 9 80
17. Give feedback to non-selected 12 8 80
candidates online
18 Report on the diversity profile of 9 2 89
candidates
19. Seek candidate feedback online 8 0 92
Drivers and benefits for introducing e-recruitment

Irish organisations that have implemented e-recruitment methodologies have

done so for a number of reasons, most notably:

 to reduce costs
 increase the efficiency of the process
 reduce time to hire
 provide access to a larger and more diverse candidate pool.

The most notable benefits reported by organisations having introduced e-

recruitment are the cost savings, which have mainly been due to reduced
advertising costs, a reduction in the resources required to process
applications, and a reduction in recruitment agency costs.

Other substantial benefits include more efficient management of

communication with candidates, and the ability to easily report on key
performance metrics as a result of Internet-based tracking systems.

Challenges associated with e-recruitment

The challenges faced by Irish organisations in implementing e-recruitment

have included problems with the technology and difficulties in tailoring e-
recruitment systems to meet the particular needs of their recruitment process.
Other challenges have included problems with having to simultaneously
operate both online and offline systems, and a lack of integration of e-
recruitment systems and existing HR systems.

A traditional concern with e-recruitment was in relation to its acceptability to

a broad range of applicants. This appears to be becoming much less of an
issue, as more and more applicants are using the Internet as part of their job
search process. In fact, there is significant evidence to suggest that the
Internet is the preferred application method for a large majority of
candidates. Nevertheless, many organisations involved in this research
showed concern in relation to candidate access and perceptions, and are
designing their online processes to be as candidate-friendly as possible, in
addition to accepting applications, in some cases, by other methods.

The future of e-recruitment

The report clearly shows that online recruitment has established itself as a
significant part of the recruitment strategy and practices of a wide range of
organisations operating in Ireland. In an increasingly competitive recruitment
market, it is critical that organisations maximise their use of the Internet in
the recruitment process, or risk losing out on quality applicants as the
Internet becomes the standard job search and application medium for job
seekers.

The report identifies a growth in the use of online systems to track and
manage candidate applications, especially for larger organisations, where
there will be significant benefits in terms of efficiency, cost, and capability to
monitor and report on recruitment activities. It also identifies significant
potential for relevant and objective online screening and assessment tools to
add value in terms of matching the competencies and skills of the job
applicant with the requirements of the organisation in an efficient and cost-
effective manner.

The findings of the research would suggest that organisations need to

examine and challenge their existing processes and strategy in an effort to
identify the barriers to attracting and recruiting the best talent in a timely,
customer-friendly and resource-efficient manner.

The report highlights a number of key areas that organisations should

consider to ensure successful implementation of an e-recruitment strategy,
including:

 building knowledge and understanding of the technology options

available
 ensuring candidate- and user-friendly interfaces on their systems
  understanding Internet access and proficiency levels amongst target
groups
 the importance of integrating online and offline systems.

This report provides a new benchmark on practices and trends in e-

recruitment in the Irish market. It provides organisations with an indication
of how advanced/developed their e-recruitment practices are in relation to
other organisations, and will help identify where their e-recruitment strategy
needs to be further developed to enable them to attract and recruit the best
candidates in the most efficient manner possible.

EXPERIMENT- 10

Browse the internet & understand the security mechanism.

Security problems, including spam and malware, plague the Internet to

the point of distracting from productive use of the network. Technology is
waging an admirable battle against these problems, but its solutions may not
be sufficient by themselves to provide adequately secure environments.
Fundamental issues with the design and interconnection policies of the
Internet infrastructure contribute to the vulnerability to generation and
dissemination of new attacks. Instead of relying exclusively on technology
solutions in the context of the current policy framework, we consider a
possible altered framework that could relate interconnection to security.
Policy changes, rather than protocol changes, are considered.
The Internet can be viewed as an economic system besides being a set
of technology components. Such a view focuses attention on the
interdependence and incentives of participating economic agents, who
include service providers, users, and purveyors of malware and spam. It has
been recognized that Internet security problems can be understood in terms
of economic concepts, such as externality, liability, and moral hazard [1, 14,
15, 18]. While this is a useful insight, we need to go further and explore
whether economic concepts can help us frame a pragmatic proposal to
alleviate security problems by influencing some of the economic factors that
govern the actions and interdependence of the participants. Such a proposal
may draw from public policy and law which have also dealt with the need to
control socially harmful actions by some of the members of various
communities.
In our proposal we recognize certain features of the Internet. As
distinct from the legal approach to controlling crime, the information
infrastructure has no clear delineation of jurisdiction, or corresponding
enforcement powers. To illustrate by an analogy, with traditional criminal
behavior such as bank theft, there are national laws that govern this behavior
and associated police actions. Assigning the liability to the perpetrators and
expecting the police to apprehend them are considered reasonable ways to
reduce crime. Prosecution of a crime is focused on the perpetrator, precisely
because the scope of jurisdiction and the powers of investigation,
enforcement, verification and punishment are well defined and can be vested
into formal institutions and policies. With the Internet, the analogy is to view
the
2
crackers as the liable entity to be apprehended and punished. The
analogy breaks down since the cracker could be in a foreign jurisdiction that
does not recognize the laws of the country that suffered the attack of the
crackers. Of course, this assumes that the crackers could be identified which
could be impossible.
 The natural assignment of liability to the perpetrators is not a practical
way of looking at the Internet security problem. Instead we propose to
consider the service provider (SP) as the entity to assume liability for the
actions of its customers. Service providers are businesses or organizations
who provide Internet access and related services to their customers or users.
For example, Yahoo!, AOL, universities, government agencies and large
companies. Since the SP itself does not carry out any attack, but only
transports traffic from customers some of whom may be crackers, it appears
unreasonable to place blame on SPs. It is common practice for public policy
and law to make allowances for aspects of practical deployment of
enforcement policies while formulating them. Accordingly, it may be seen
that controls are sometimes applied at those nodes in organizational or
community hierarchies which have the highest ability to influence the
targeted criminal activity.
It would also be reasonable to assume that SPs would not voluntarily
accept such a status since they would not accept a liability for a criminal
action that they did not commit. Thus we need to show that a case can be
made for SPs to voluntarily accept liability. In other words, we need to show
that SPs may find it in their interest to subscribe to a framework that makes
them responsible for security problems initiated by their customers. We
denote the SPs that subscribe to the proposed policy framework as being
“certified”.
To induce a SP to accept liability and thus to become certified, we
propose that all of the certified SPs’ traffic once identified be carried to other
certified SPs without any additional reduction in performance for inbound
filtering. In contrast, traffic from a non-certified SP may be blocked or
significantly slowed down by certified SPs for careful screening. Thus
customers of a certified SP would obtain better service quality compared to
customers of a non-certified SP and should be willing to pay a higher price
for the service. However, the value to customers of a certified SP depends, in
general, on how many other SPs decide to become certified. Since
certification brings with it the liability obligation, a
3
SP has both the issue of how many other SPs, it believes, will choose
certification and how capable it is in monitoring and detecting possible
traffic from its customers that could result in costly penalties. The latter
decision is a one based on private information that the SP possesses but the
former information is a guess or a conjecture.
This is especially complex since each SP is facing the same
conjectural decision and the result could easily lead to inconsistent results
where SPs make conjectures about the composition of the certified group
which turns out to be incorrect. Is there a possibility of a solution where the
conjecture or expectation of the SPs are consistent and creates a subset of
SPs that form a certified group and thus a viable and more secure
environment within the Internet? The answer depends on the number of
capable SPs and the number of users who could financially appreciate the
benefits of a more secure Internet environment. So the challenge of
voluntarily creating a collection of certified SPs with their associated
customers is in the end an empirical issue. That is, we need to validate the
conceptual framework by conducting experimental investigations into
whether certification can attain sufficient critical mass to generate significant
improvements for the certified providers and their customers, and that such
gains are not offset by partial degradation of connectivity to the non-certified
environment.
Our mechanism promotes the adoption of secure Border Gateway
Protocols (BGPs) and minimizes the incidents of prefix hijacking attacks.
BGP, by design, assumes that all SPs are benevolent and that SPs trust each
other. If a cracker compromises a SP’s router, he can make the router to
advertise that he owns some IP addresses without being challenged by other
routers. Such an attack is referred to as prefix hijacking or IP hijacking. By
hijacking IP addresses, crackers can conduct malicious activities, such as
sending spam, initiating DDoS attacks and intercepting traffic [3].
Researchers have proposed various secure BGP, such as S-BGP, soBGP,
IRV and SPV to address prefix hijacking attacks [6, 8, 12, 13, 19]. However,
adoption of secure BGP will happen only when there are enough adopters
due to network externalities [5]. Our mechanism requires certified SPs to
implement these protocols and hence facilitates the adoption of secure BGPs.
4
The proposed mechanism is also capable to identify competent SPs
without implementing complicated reputation algorithms. Reputation
systems have been suggested to help resolve the information asymmetry
among communication parties over the Internet. A variety of reputation
measurements have been proposed to evaluate each parties’ online activities.
For example, the Cooperative Association for Internet Data Analysis
(CAIDA) and RocketFeul aim to construct the topology maps of Internet
infrastructure. The Spamhaus Block list and SenderCops maintain a realtime
database of IP addresses of reported and verified spam sources; SenderBase
monitors email traffic on the Internet and provides an accurate view of the
sending patterns of mail senders. Different from these approaches, our
mechanism induces SPs voluntarily to report their nature and consequently
establishes a white list.
To summarize, our approach is to assign liability to those SPs who in
turn voluntarily accept it. For a SP that has accepted responsibility there is a
strong incentive to monitor and also to write contracts with customers that
hold them responsible both financially and possibly in terms of reputation.
Even without explicit liability, the approach induces SPs to monitor the
behavior of their computing environments to ensure that it is not used
explicitly or otherwise to cause damage.

1.1 Security Practices

Before investigating SPs’ incentives to accept liability for security, we
need to examine SPs’ choices of security practices. We classify technologies
and methods for SPs to control security into two categories, regulative
practices and protective practices.
We refer to the set of technologies and methods for SPs to minimize
the possibility of sending out malicious traffic as regulative practices, for
example, the technologies used to monitor users and filter outgoing traffic.
We refer to the set of technologies and methods for SPs to minimize the
possibility of receiving malicious traffic as protective practices, for example,
the technologies used to filter incoming traffic. Figure 1 demonstrates the
impact of protective and regulative practices on Internet traffic.
[Please insert Figure 1 here]
5
2 To identify and eliminate the malicious traffic among inbound traffic with
a certain probability, SPs need to invest more in protective practices than in
regulative practices.
3 Currently SPs are concerned about their customer bases and voluntarily
taking actions to regulate their customers, e.g. port 25 has been blocked by
many SPs. However, such effort is insufficient in general.
Regulative practices are considered, in general, more effective2 than
protective practices for three reasons. First, it is easier for SPs to perform
regulative practices than protective practices because of information
advantages. SPs have direct relationship with their customers and are able to
acquire more information about their customers. For example, a SP can
monitor its customers and recognize abnormal communication patterns. It
can contact customers to detect third-party hacking. In contrast, it is very
difficult and costly for SPs to identify malicious traffic originating from
other networks. Second, SPs have administrative powers. They can slow
down a connection, quarantine zombie computers, or directly disconnect
crackers, spammers or phishers. Finally, regulative practices alleviate
network congestion by dropping malicious traffic before it passes through the
Internet.

1.2 Certification Mechanism

Currently, not all SPs are willing to assume the responsibility for
security and deploy regulative practices to examine the traffic they are
forwarding. SPs either take no security action or only deploy protective
practices to improve local security.3 By assigning liability, our certification
mechanism can induce SPs to deploy regulative practices within the certified
network and improve overall Internet security.
The certification mechanism includes three kinds of players, the
certification provider, SPs and customers. They interact in two stages as
follows.
In the first stage—the subscription stage
• The certification provider determines a subscription fee for
certification services;
• SPs voluntarily subscribe to certification services;

• The certification provider issues certificates to subscribed SPs and

maintains a list of certified SPs.

In the second stage—the communication stage

• SPs invest in security practices, determine customers’ Internet access
fees and initiate network services;
•

7
4 We thank Dr. Rahul Telang for providing this helpful reference.
We use a game-theoretic model to examine SPs’ incentive and
evaluate the efficiency of the certification mechanism. In addition to the
traditional screening and signaling mechanism, our model incorporates
network externalities as an important feature of Internet communications. In
traditional screening and signaling games, choices by players generally
depend only on their own inherent characteristics. In our model, a SP’s
choice depends not only on its own characteristics but also the expected
choices of other SPs. For example, when a SP decides whether to subscribe
to certification services, it will also consider other SPs’ expected subscription
decisions, i.e., the expected number of SPs in the certified/non-certified
network and their types. As a result, the interdependency among the SPs’
payoffs largely affects the equilibrium outcome the certification provider can
induce.
The organization of this chapter is as follows. In Section 2, we review
recent literature on information security. In Section 3, we outline a game-
theoretic model and derive important conditions. In Section 4, we analyze
strategies of various players and derive equilibria. System efficiencies and
the certification provider’s profit are also analyzed. Section 5 concludes the
chapter with a discussion of implementation issues.
2 Literature review
As information security has been extensively studied from a
technological perspective, there is an emerging body of literature exploring
security issues from an economic perspective. Anderson and Moore [1]
indicate that incentive misalignment significantly undermines information
security and emphasize that incentives should be considered in security
design. Varian [18] also points out that besides identifying weak points and
indicating who might be in position to fix them, a security analysis should
further examine incentives of those who are responsible for security.
Liability should be assigned to those who are best positioned to improve
security. Lichtman and Posner [15] propose that holding ISPs liable or
partially liable can help improve the efficiency of security protection4.
Parameswaran et al. [17] specifically point out that SPs who provide direct
Internet access to end users should protect their users
8
and safeguard the overall network. This paper shares the view that SPs
should be responsible for security and introduces incentives for them to
achieve this goal.
This paper also connects to research exploring the optimal security
investment. Gordon and Loeb [7] develop an economic model to study the
optimal investment in information security. Huang et al. [9] further extend
Gordon and Loeb’s paper [7] and consider a security threat scenario where
attacks from multiple agents occur simultaneously. Cavusoglu et al. [4] use a
game-theoretical model to analyze the impact of IT security investment on
manual monitoring, firewall and IDS configurations considering the
difference in costs. All these papers ignore the interdependency between
individuals and organizations on the Internet and take a firm’ risks as
exogenously given.
The Internet risks and the incidents of security breaches are highly
interdependent due to the global connectivity of the Internet. Kunreuther and
Heal [14] demonstrate that firms fail to coordinate their security investment
in the presence of interdependent risks. An entity will significantly
underinvest if it believes that there are other weak nodes in the network,
leading to an inefficient equilibrium. Ogut et al. [16] show that risk
interdependency lowers firms’ incentive to invest in security protection and
buying insurance coverage. These papers capture the nature of Internet
security and exhibit its impact on firms’ decisions and market equilibria.
However, eliminating the source of insecurity is generally not considered.
Researchers have started to examine the impact of various security
mechanisms and policies on Internet security. Kannan and Telang [11]
compare the social efficiency of a CERT-type mechanism to that of a
market-based mechanism on vulnerability disclosure. August and Tunca [2]
compare the impact of different security policies on individual user’s
incentive to patch software taking account of patching costs and negative
network externalities. Huang et al. [13] discuss the weaknesses of existing
solutions to DDoS attacks and then propose two approaches to counter such
attacks. In this study, we propose a novel economic mechanism, a
certification mechanism, to enhance collaboration among SPs and eliminate
sources of malicious activities.
 EXPERIMENT- 11
Browse the internet and explain the application of e-commerce in our
day to day life.

What is business-to-business e-commerce?

It's companies buying from and selling to each other online. But there's more
to it than purchasing. It's evolved to encompass supply chain management as
more companies outsource parts of their supply chain to their trading
partners.
I use electronic data interchange. Am I already doing it?
Yes. And if you're getting value from your EDI investments, there's no
reason to abandon them now. But it's a good idea to think about whether any
other data exchange methods have a role in your future B2B efforts. EDI has
limitations, including an inflexible format that makes it difficult to use for
any but the most straightforward transactions. Much of the newer e-
commerce software uses XML — grammatical rules for describing data on
the Web — as its standard for data exchange. XML allows for more variety
in the information companies exchange and was designed for open networks.
What are the differences between B2B and business-to-consumer e-
commerce?
There's the obvious difference in who the customers are — companies or
individuals. Beyond that, there are two big distinctions:

B2B efforts require negotiation…

Selling to another business involves haggling over prices,
delivery and product specifications. Not so with most consumer
sales. That makes it easier for retailers to put a catalog online,
and it's why the first B2B applications were for buying finished
goods or commodities that are simple to describe and price.
…and integration.
Retailers don't have to integrate with their consumer customers'
systems. Most companies selling to businesses do integrate
because their systems have to be able to communicate with
those of their customers without human intervention.
What are the benefits?
B2B e-commerce can save or make your company money. Some ways
companies have benefited from B2B e-commerce include:
• Managing inventory more efficiently
• Adjusting more quickly to customer demand
• Getting products to market faster
• Cutting the cost of paperwork
• Reigning in rogue purchases
• Obtaining lower prices on some supplies

What is a B2B exchange?

At its most basic, a B2B exchange (also called a marketplace or hub) is a
website where many companies can buy from and sell to each other using a
common technology platform. Many exchanges also offer additional
services, such as payment or logistics services that help members complete a
transaction. Exchanges may also support community activities, like
distributing industry news, sponsoring online discussions and providing
research on customer demand or industry forecasts for components and raw
materials.
What's the difference between a public B2B exchange and a private one?
Which one should my company use?
Public exchanges are owned by industry consortia or independent investors
and have their own boards of directors. Though each exchange sets its own
rules, they are generally open, for a fee, to any company that wants to use
them. Private exchanges are run by a single company for doing business
exclusively with established suppliers and customers (although the systems
that support it may be outsourced). Which one your company uses depends
on what you want to do. If you are buying and selling commodity products,
public exchanges can be a good venue in which to find low prices or identify
new customers. They're also becoming a popular way for a company to
unload excess inventory.
What's the first step I should take?
Start with buying so-called indirect supplies like pencils, chairs and copy
paper. Most companies start here because it's easier to set up an online
catalog of approved office supplies than it is to automate procurement of
specially engineered parts and materials. Plus, you're not affecting day-to-
day operations while you get your feet wet. While the payoff won't be as big
as for more mission-critical purchases (so-called direct materials used to
produce the goods or services you sell), it can be significant. The Burlington
Northern Santa Fe railroad company lopped an estimated 3 percent to 28
percent off its indirect purchases and saved money internally by automating a
manual process for approving purchase orders.
What's collaborative B2B e-commerce?
It's marketing speak for integrating your supply chain, and it's a vision of e-
commerce nirvana. You're not just sharing blueprints or your latest sales
forecasts; you and your trading partners are giving each other real-time
access to your ERP, product design, inventory and other systems. Companies
that are doing it say it helps them get new products to market faster, reduce
manufacturing time, keep inventory low and adjust more quickly to changes
in customer demand.
To collaborate successfully, you and your partners each need up-to-date,
functioning systems to serve up whatever data you plan to share, and a way
to deliver that information electronically. That can be a big hurdle when
many companies still do a lot of business by phone and fax. There's cultural
resistance as well. Not every company sees the value of sharing what has
been confidential information or trusts its partners with it. Some also fear
online collaboration might result in layoffs.
Which business units should be involved in a B2B project?
Definitely the units that do purchasing. B2B e-commerce can drastically
change how buyers do their jobs, especially if your company is one that still
places orders the old fashioned way. Sales and customer service departments
will need to be involved with projects that affect how you receive and
process orders from customers. And don't forget the folks who manage your
inventory. You may need to get other departments involved, too, depending
on the functionality you're building. Also involve your suppliers, distributors
and customers, and make sure there's something in the project for them.
What kind of software do I need? Is it expensive?
Exactly what you need depends on whether you're a buyer or seller, whether
you're dealing in indirect or direct materials and the extent to which you're
integrating your supply chain. Elements of a B2B system may include
software for generating purchase orders or requests for quotations (RFQs),
processing invoices, building and managing catalogs, responding to RFQs
and processing orders.
Cost is also relative. In general, the more elements of your business you want
to integrate with trading partners, the more you have to spend. A March 2001
Forrester Research report pegged the cost for buyers to join an online
marketplace at between $5.6 million and $22.9 million, including operating
costs.
How long will it take to put B2B systems in place?
You can set up an online catalog for your customers in a few months.
Starting from scratch to build a portal for your suppliers that integrates with
your back-end systems may take you more than a year. The most time-
consuming aspect of building B2B systems is mapping your business
processes to those of your trading partners.
What if my trading partners aren't ready to do business online?
Build your B2B application and your partners will probably come to use it.
Some companies have built Web portals that allow partners to place orders,
input data and access information from their ERP or other back-end systems
without any more investment than Internet access. If your partners have to do
some of their own software development to use the application, be sure you
offer them a big enough carrot (like the promise of additional business) to
make the investment pay off for them.
Companies are increasingly forming and joining B2B exchanges to do
business over the Internet. They can offer your company huge opportunities
to cut costs, realize efficiencies and enhance competitiveness. But with
opportunity comes risk, and one of the biggest risks is the looming specter of
antitrust challenges. However, B2B participants are in a strong position to
address these concerns. Here's what they should ask regarding potential
antitrust problems.
1. How red are the antitrust flags?
Your exchange is more likely to attract antitrust attention if it has significant
"market power"—the ability to restrict output, exclude competitors or raise
prices. You should feel relatively comfortable if the collective market share
of your B2B participants is less than 20 percent in each affected market, a
safety zone defined by the government's competitor collaboration guidelines.
But the more you move above this zone, the greater
the risk that the government or your competitors will place your exchange
under the antitrust microscope.
2. Can you identify and prove efficiencies?
If you participate in an exchange you should be prepared to show that it
results in procompetitive benefits for the participants and the market as a
whole. Such market benefits, or efficiencies, might include reduced
administrative costs, enhanced systems integration or better supply chain
management.
3. Is the B2B venture the only game in town?
Exclusivity is an important factor in assessing B2B exchanges' antitrust risks.
If B2B collaborations bar participants from leaving, the possible
anticompetitive effects may become more tangible and definitive. They may
also cause antitrust problems if they block nonparticipants from joining. The
challenge is that there may be legitimate, even procompetitive, business
reasons for restricting the ability to join and leave B2B marketplaces. The
underlying question is whether a B2B collaboration's exclusivity affects the
ability of participants and industry players to compete.
4. Is the B2B exchange managed independently?
There are many possible ownership, organizational and managerial
frameworks you can use to structure your B2B collaboration. But from an
antitrust perspective, there are sound reasons why some frameworks are
better than others. You run a higher risk of antitrust problems if you or your
partners have contributed significant financial investments to the exchange
that might reduce your ability or desire to compete independently. You also
face greater antitrust exposure if your B2B venture is jointly organized and
governed by participants instead of an independent third party. 5. Are B2B
participants paying enough attention to these issues?
With the proliferation of B2B exchanges (approximately 1,300 in the United
States and thousands more in development), the reality is that some are
ignoring these important questions. Moreover, we're at the beginning of a
new frontier of antitrust law, where rules are in flux and potential challenges
are abundant. It's critical for exchanges to pay careful attention to their
antitrust risks from the business-planning phase onward. Your B2B venture
will more likely survive antitrust investigation and possible litigation if you
face your antitrust risks head-on, aggressively identifying and addressing
problem areas before others do.
Organizations need to view security as a business enabler that gets the right
people to the right resources rather than simply as a means of shutting people
out. That approach lets organizations respond to change quickly and make
rapidly expanding user populations productive faster. Here are seven tips for
making security work for smoother collaboration. 1. Extend the power. The
more resources that can be safely shared, the more companies can collaborate
and act as true extended arms of business.
2. Automate to collaborate. Replace manual procedures for creating,
managing and terminating accounts with an automated system that maintains
security while ensuring that all users receive appropriate access to the
resources they need.
3. Enforce corporate policies. Develop security and administrative policies
before collaboration. Have a system in place that automates workflow
processes to ensure all polices are enforced as access rights are created,
maintained and terminated. 4. Delegate administration. Delegate the
authority to maintain user status within business partnerships, allowing
verification, approval, audit, reconciliation and modification. For example: "I
grant authorization to individuals with role X in organization Y to access
resource Z."
5. Safely open the back door. For effective collaboration, users need access
to data in real-time for resources behind the firewall, such as ERP systems
for supply chain collaboration and CRM systems for better customer
management.
6. Know the users. Have a central repository from which to retrieve data on
the individual users accessing back-end applications from outside the
firewall, including data on business partner employees.
7. Protect privacy. While granting access, be sure to control who goes
where in order to protect individual privacy and still satisfy specific
government regulations in an auditable fashion.
E-business
The process of conducting business on the Internet.
E-commerce
The process of selling and buying goods and services on the Internet.
Thomas Koulopoulos, president and founder of The Delphi Group, a
Boston based e-business consultancy answered your questions on the
topic of business to business portals.
What are the important considerations for a financing company
that wants to develop a portal for its customers and their suppliers?
You've hit on one of the most underplayed aspects of a vertical portal
(Vortal) - that is the formation of a community that provides the
business services needed to support B2B transactions. As the velocity of
a market increases, the efficiency with which key services such as
financing are delivered must also increase. Unfortunately much of this
discussion to date has focused on the commoditization of financial
services through on-line banks that promise to dissintermediate the
financing process. That's a short sighted solution. The greatest value
play for a financing organization would be to offer a re-intermediated
approach to financing. You see this in the B2C segment through
services such as Lendingtree.com. The key is to offer a mechanism by
which the right lender can be matched with the right transaction. In this
sort of market the financing institution may actually create markets by
identifying transactions and lenders that never knew each other existed!
What industries are the most likely to initially use and benefit the
most from B2B portals?
Those with the most complex value chains, such as manufacturing. The
best example today is that of the automotive industry which is the
largest B2B deployment to date with the partnering of GM, Ford, DC.
What is the difference between the terms vortex, vortal and hub?
There are many more terms being used to describe the same three basic
constructs. So we first need to do a bit of consolidation. Once we do
that, the definitions are fairly straightforward, although I agree that there
is significant overuse of all of these terms -- becoming the general
purpose salve that soothes myriad sources of pain. First, let's agree that
each of the definitions I'll propose is based on an assumption that these
are all constructs of the web (i.e. the web as a universal platform is a
prerequisite for their existence.) A portal is "a single point of
personalized and portable access to multiple information, human,
organizational, and industry resources." Portals are the high end
constructs that allow a user to interface with all B2B solutions. A
Vortal/Vortex/Vertex is a Vertical Portal for a specific community.
Vortals are used as the basis for the construction of web-based value
chains. Within a vortal you could expect to find everything from
sourcing, to the transaction infrastructure for an industry, to support
services (legal, financing, procurement, etc). These terms are often used
to describe e-markets for products and services that are far more
sophisticated than those facilitated through the next category - the Hub.
Hub/Trading Exchange are general terms used to describe a central
point where buyers and sellers can buy and sell parts, commodities, and
standardized products. They are effectively catalogs of an industry.
These are usual first generation vortals. FreeMarkets is a good example
of a Hub.
What are the expectations of B2B buyers and sellers?
The expectations today are relatively shallow. For the most part sellers
are happy to find buyers who they would otherwise be able to reach and
buyers expect to find better prices through auction or aggregation of
purchasing power. But you are right on the money with your
observation about second generation B2B solutions. The primary
difference between today's trading exchanges and tomorrow's vortals
(vertical portals) is the advent of completely integrated support
communities for trade.
While just 34 percent of businesses consider the Web very important for
making purchases, B2B buying continues to grow.

The latest Forrester Report on eBusiness, conducted in June, found that

just 34 percent of businesses consider Web purchasing very important
or critical to their overall sourcing and procurement strategies, and 34
percent rated the Internet capabilities of their suppliers as “very bad” or
“poor.” About 29 percent of the 390 respondents reported cost savings
through Web purchasing, a 3 percentage-point increase over last quarter.
“I don’t think the Net is about universal capabilities for all buyers at all
times,” says Bruce Temkin, group director at Forrester. “The companies
that change their procurement process to make better use of the
technology will succeed, not the ones that just use the technology.”
Edith Kelly-Green, vice president and chief sourcing officer at FedEx,
says integration is more of a change management problem than an IT
problem. “There are a lot of stars that have to be lined up to optimize
the benefits of online purchasing,” she says.
The recent survey shows that adoption is slow, but constant. About half
(47.2 percent) of respondents estimated that their companies were less
than 5 percent of the way toward full adoption of Internet purchasing.
Respondents cited integration as the biggest obstacle to adopting online
procurement. This marks a change since the previous survey, conducted
in January 2001, when respondents listed the economy as their greatest
hurdle.
“Things are a bit on hold,” says Kelly-Green. “Integration is an issue;
and some respondents are blaming a lack of clarity in terms of expected
benefits, but I really think it’s the economy. In many cases, you’ve got
to spend some money.”
Use of online auctions increased from the January survey, in which 15
percent of respondents participated on B2B auctions. By June, that
number had crept up to 20 percent. With spending coming under greater
scrutiny, Temkin says, auctions provide a cost-effective way to purchase
online.
According to the survey, respondents bought nearly 10 percent of their
indirect goods online in the last quarter. Two years ago, Temkin says,
that number was close to zero. But, he says, it is doubtful that
companies will ever adopt an Internet-exclusive purchasing strategy.
“It takes a lot to really reduce your costs with online buying,” says
Temkin. “Just a little piece has to do with the Internet itself. At the end
of the day, online buying is never more than a piece of a procurement
and sourcing strategy.”
Aberdeen Group reports that more than 60 percent of suppliers in all
industries continue to receive orders via fax or e-mail. And a mere 4.5
percent of all purchasing dollars are transacted through B2B e-
commerce, according to a 2002 survey by the Center for Advanced
Purchasing Studies. With so few transactions conducted electronically,
companies are missing out on the full value of B2B e-commerce. Louis
Columbus, a senior analyst with AMR Research in Boston, says
procuring direct materials via phone, fax or e-mail costs between $160
and $200 per transaction, while the same activity executed
electronically rings up as low as $40 per transaction—a fivefold
savings. Aberdeen Group estimates that automating procurement
activities will save midsize companies $2 million per year. And that's
not to say anything of the cost savings resulting from better supply
chain collaboration. Indeed, the advantages of B2B e-commerce include
savings in administrative costs; decreases in acquisition, purchasing and
payment cycles; reductions in errors and product returns; better
inventory data; and incremental revenue growth.
In 1997, an advanced development group—later dubbed e-Citi—came
into the world as a standalone incubator for new Internet technology. It
had plenty of money to spend and plenty of people to spend it. The
initiatives were ambitious—including the Internet-only bank called Citi
F/I, a small business website and an electronic commerce marketplace.
But the technology creators worked in a vacuum, without specific ties to
the business units. Lacking those ties, the technology foundered, and
money swirled down the drain. A lot of money. Some reports put the
losses in the hundreds of millions of dollars.
When the future of online-only banks began to dim, Citigroup quietly
shut down Citi F/I, salvaging what it deemed the best of its functionality
for Citibank Online, the existing site for online Citibank accounts. The
company also pulled the plug on Finance.com, a consumer site that
strayed from Citigroup's business model by offering both Citigroup and
competitive products.
After the hemorrhaging stopped, Citigroup was determined not to repeat
the mistake of allowing itself to be seduced by dazzling new
technologies without considering business needs. So in the spring of
2000, Weill asked Deryck Maughan, a vice chairman of Citigroup, to
establish the Internet Operating Group. E-Citi kept its name, trimmed its
forces (from 1,200 to 125) and reestablished itself as part of the Internet
Operating Group under Maughan. The Internet Operating Group now
directs all the company's e-business initiatives and makes sure e-Citi
develops technology with the needs of the business units in mind. To
that end, it insists that all technology projects fall into one of four
buckets: e-consumer, e-business, e-capital markets and e-asset
management, though business units themselves must fund the projects.
Each business unit reports on its projects' progress to the Internet
Operating Group every six months.
When managers at the Federal Home Loan Bank of Dallas decided to
automate some customer transactions nine years ago, they didn't call it
B2B e-commerce. Nancy Parker, senior vice president and CIO, and her
team developed an application to let customers—small to midsize banks
—automate wire transfers for cash advances. The Internet became the
medium, and the program's success yielded some quick lessons.
The bank further developed its program, SecureConnect, to include
financial status reports and updated interest rate quotes. Customers,
using encrypted passwords, get confirmation of their transactions and
account updates in real-time. The results: Since SecureConnect debuted
in 1997, the bank's loan portfolio has grown from $9 billion to $32.3
billion as of the end of 2001. Into April, 95.6 percent of the bank's
transactions traveled through SecureConnect. Sixty-three percent of the
bank's 841 member institutions participate. Meanwhile, the bank's five-
member lending staff has remained constant.
How did they get such a high participation level? Parker and Sonia
Brown, a senior vice president at the Dallas bank, offer these
observations:
1 Show up at the door. Over a three-year period, Federal Home Loan
Bank sent a team of IS and other staff to visit customer banks in
Arkansas, Louisiana, Mississippi, New Mexico and Texas. The bank
provided training, software and
networking equipment if necessary—all free of charge. Every site was
different and required a different level of support.
2 Pay a lot for security. Without disclosing how much Federal Home
Loan paid, Parker adds that "we certainly did not spare the cost of
making sure the security was as high as it could be." What is clear is
that the security measures have to be easy enough for a PC novice to use
but strong enough to handle transactions worth millions of dollars every
day.
3 Don't use "Internet time." While the Dallas bank was an Internet
early adopter, the business pursued SecureConnect as a long-term
strategy. It took about four years between the decision to create
SecureConnect and its rollout. 4 Offer price breaks. SecureConnect
users get a lower interest rate on loans—as much as one-tenth of an
interest point. For customers processing hundreds of transactions a day,
that can add up.

EXPERIMENT- 12
Browse the internet and understand the mechanism of Internet
Retailing.

The most talked-about subject in retailing, and indeed, the entire business
world, as we enter the new millennium is the potential impact of the

Internet.There continues to be tremendous speculation on the impact it will

have on retail sales. E-commerce, e-retailing, and e-tailings have all become
commonly used buzz words. In some circles, traditional “brick and mortar”
retailers are considered dinosaurs as Wall Street and venture capitalists place
huge valuations on promising Internet start-ups while penalizing those
companies without a strong E-commerce presence.Estimating Internet sales
has also become a cottage industry for research and consulting
organizations.Historically, the estimates for potential sales have been so
outlandish that they are laughable The Compressed Retail Life Cycle The
Internet, at its most basic, represents another channel in which to market and
sell goods and services. It brings compression of the overall retail life cycle
to a new level. From an historical context, the pace of retail change is
continuing to accelerate. Peddlers and “mom and pop” retailers controlled
retail trade for hundreds of years. Then, the big department stores and mass
merchants dominated retail for nearly 50 years, with the growth of regional
malls and huge retail concerns like Sears, JC Penney and Kmart.

Projections for E-Retailing Growth

We have broken down projections for e-retailin growth over the next five years by major
shopping category. For each section, we have grouped segments together by high impact
(10 percent or more of sales); moderate impact (4-5 percent of sales) and limited impact
(less than 3 percent) by 2003. We also have a category that will have a high non-
transactional impact. It is important to note that some categories may have a limited
impact but represent huge potential sales volume—grocery stores and drug stores,

for example.

The estimates of total category sales are based upon segment breakdowns, as reported by
the U.S. government. In some cases, figures are reported by segment (e.g., toy retailers);
in others,we present a reported breakdown by general segment (discount stores) that sell a
multitude of items. These figures also take into account estimated sales from direct
marketing.