Unit-1

1)Define E-commerce? Explain scope of E-commerce?

Ans:- Defination:- ‘Electronic Commerce is a general concept covering any form of business
transactions or information exchange executed using information and communication technology,
between companies, between companies and their customers, or between companies and public
administrations.

The Scope of Electronic Commerce:- E-commerce -- electronic commerce or EC -- is the buying

and selling of goods and services, or the transmitting of funds or data, over an electronic network,
primarily the internet. These business transactions occur either as business-to-business, business-to-
consumer, consumer-to-consumer or consumer-to-business.

Electronic Markets: An electronic market is the use of information and communications

technology to present a range of offerings available in a market segment so that the purchase can
compare the prices (and other attributes) of the offerings and make a purchase decision. The usual
example of an electronic market is an airline booking system.

Electronic Data Interchange (EDI): EDI provides a standardized system for coding trade
transactions so that they can be communicated directly from one computer system to another
without the need for printed orders and invoices and the delays and errors implicit in paper
handling. EDI is used by organizations that make a large number of regular transactions. One sector
where EDI is extensively used is the large supermarket chains which use EDI for transactions with
their suppliers.

Internet Commerce: Information and communications technologies can also be used to advertise
and make once-off sales of a wide range of goods and services. This type of e-Commerce is typified
by the commercial use of the Internet. The Internet can, for example, be used for the purchase of
books that are then delivered by post or the booking of tickets that can be picked up by the clients
when they arrive at the event.
2)Explain about E-commerce and Trade cycle?

Ans:- E-Commerce can be applied to all, or to different phases, of the trade cycle. The trade cycle
varies depending on:
 The nature of the organizations (or individuals) involved.
 The frequency of trade between the partners to the exchange.
 The nature of the goods or services being exchanged.
The trade cycle has to support :-
 Finding goods or services appropriate to the requirement and agreeing the terms of trade
(referred to as search and negotiation).
 Placing the order, taking delivery and making payment (execution and settlement).
 After-sales activities such as warrantee, service, etc.

1. Movement in Economic Activity : A trade cycle is a wave-like movement in economic activity

showing an upward trend and a downward trend in the economy.
2. Periodical : Trade cycles occur periodically but they do not show the same regularity.
3. Different Phases : Trade cycles have different phases such as Prosperity, Recession, Depression
and Recovery.
4. Different Types : There are minor and major trade cycles. Minor trade cycles operate for 3-4
years, while major trade cycles operate for 4-8 years or more. Though trade cycles differ in
timing, they have a common pattern of sequential phases.
5. Duration : The duration of trade cycles may vary from a minimum of 2 years to a maximum of
12 years.
6. Dynamic : Business cycles cause changes in all sectors of the economy. Fluctuations occur not
only in production and income but also in other variables like employment, investment,
consumption, rate of interest, price level, etc.
7. Phases are Cumulative : Expansion and contraction in a trade cycle are cumulative, in effect,
i.e. increasing or decreasing progressively.
3)Explain about Electronic markets?

Ans:- An electronic market is an inter-organisational information system that provides

facilities for buyers and sellers to exchange information about price and product offerings (been, et
al., 1995). The electronic market is primarily about the search phase of the trade cycle. The
electronic market is most effective in assisting the buyer in a commodity market where products are
essentially identical across all sellers. In a differentiated market there is a variety of product
offerings and the search problem is more complex. An effective electronic market increases the
efficiency of the market, it reduces the search cost for the buyer and makes it more likely that the
buyer will continue the search until the ‘best buy’ is found. ‘The effect of an electronic market in a
commodity market is a more efficient distribution of information which causes decreasing profit
possibilities for sellers.

Electronic Markets (and electronic information services giving product and price data) exist in
commodity exchanges, financial markets and they are also extensively used in the airline industry
for passenger seat sales. ‘…the overall effect of this technology will be to increase the proportion of
economic activity co-ordinated by markets’. The importance of electronic markets in the sectors
where they operate has increased but there has not been any dramatic expansion of the use of
electronic markets to additional economic sectors. Part of the difficulty of establishing new
electronic markets relates to activities by vendors to gain competitive advantage by product
differentiation and techniques to lock-in customers.
4)Explain about Electronic Data interchange?
Ans:- EDI is based on a set of standardized messages for the transfer of structured data between
computer applications. it is principally used for trade exchanges: orders, invoices, payments and the
many other transactions that can be used in national and international trade exchanges.. EDI allows
the stock control/materials management system of the customer to interface with the stock
control/production systems of the suppliers without the use of paper documents or the need for
human intervention. EDI is used for regular repeat transactions, it takes quite a lot of work to set up
systems to send and retrieve EDI messages and,
Security to EDI:-

Security is an essential part of any transaction that takes place over the internet. Customers will
lose his/her faith in e-business if its security is compromised. Following are the essential
requirements for safe e-payments/transactions −

 Confidentiality − Information should not be accessible to an unauthorized person. It should not

be intercepted during the transmission.

 Integrity − Information should not be altered during its transmission over the network.

 Availability − Information should be available wherever and whenever required within a time
limit specified.

 Authenticity − There should be a mechanism to authenticate a user before giving him/her an

access to the required information.

 Non-Repudiability − It is the protection against the denial of order or denial of payment. Once
a sender sends a message, the sender should not be able to deny sending the message. Similarly,
the recipient of message should not be able to deny the receipt.

 Encryption − Information should be encrypted and decrypted only by an authorized user.

 Auditability − Data should be recorded in such a way that it can be audited for integrity
requirements.
5)Explain Internet commerce?

Ans:- Internet Commerce is the use of the Internet for all phases of creating and completing
business transactions. Various surveys suggest that the amount of business conducted online will
increase ten-fold over the next few years, from around $500 million in 1996 to over $6 billion in
2000. However, this still represents less than 10 per cent of the business conducted by mail order.
In our view too much focus of electronic commerce to date has been put on carrying out the final
transactional phases - the ordering and payment. While such a perspective is all right when there are
established supply chains for regular and routine purposes, this overlooks the wider perspective. It
is often said, that the formal placement of an order is preceded by as many as 30 previous
information exchanges. Thus, in its broadest sense we view Internet Commerce as also including:

 The full sales and marketing cycle - for example, by analysing online feedback to ascertain

customer's needs

 Identifying new markets - through exposure to a global audience through the World Wide Web

 Developing ongoing customer relationships - achieving loyalty through ongoing email

interaction

 Assisting potential customers with their purchasing decision - for example by guiding them

through product choices in an intelligent way

 Providing round-the-clock points of sale - making it easy for buyers to order online,

irrespective of location

 Supply Chain Management - supporting those in the supply chain, such as dealers and

distributors, through online interaction

 Ongoing Customer Support - providing extensive after-sales support to customers by online

methods; thus increasing satisfaction, deepening the customer relationship and closing the

selling loop through repeat and onging purchases.

6)Explain about Business Strategies in an Electronic age?

Ans:- Some challenges and potential solutions are:

 Bandwidth - There is concern that as usage of the Internet grows exponentially, that there
will be insufficent bandwidth and it will grind to a halt. However, various analysts have
shown that, in general, market forces will enable capacity to keep up with demand, though it
may be patchy in places. Solutions: Some suppliers are talking of multi-tiered services with
premium pricing guanteeing faster levels of service.

 Authentication - When orders are placed over a network the buyer needs reassurance that it
was an authorized transaction and actually comes from who it purports. Solutions: Electronic
signatures, trusted third party validation .

 Security - Both parties want assurance that their confidential transaction details have not
been intercepted. Solutions: Encryption, secure servers.

 Legislation Harmonisation - Under which jurisdiction does a transaction take place- the
location of buyer, seller or server? Issues like these are the subject of policy debate.

 Payment - How can someone set up simple, reliable and risk free mechanisms for payment,
in multiple currencies and without hefty bank charges? Solutions: Electronic cash
mechanisms, new Internet protocols such as SET (Secure Electronic Transactions), virtual
banks.

7)Explain supply chains strategies?

Ans:- Supply Chains The products sold in shops and purchased for use in organizations are the
result of a complex web of relationships between manufacturers, component suppliers, wholesalers,
retailers and the logistic infrastructure that links them together. Most organizations have a large
number of trade relationships. The web of trade relationships is referred to as the supply chain or
the value chain (as each stage adds value to the product before passing it on). The business goal can
be to reduce costs, improve service or to tap into a new market. The form of e-Commerce that is
appropriate is dependant on the circumstances of the party to the exchange and the nature of the
trade relationship. some of supply chain strategies are

1)Pull Supply Chain :-– Under pull supply chain, the process of manufacturing and supplying is
driven by actual customer demand. In this type of supply chain logistics, inventory is acquired on a
need-basis. The benefits of this type of planning include less wastage in the case of lower demand.
The problem, however, is that the company might not have enough inventory to meet rising
demands due to unforeseen factors. For example, an auto repair shop that only orders parts that it
needs. In this case, the business waits until it gets an order to procure the parts required for the
repair.

2)Push Supply Chain :-– Under push supply chain, the logistics are driven by long-term
projections of customer demand. For example, at the end of the summer season, clothing brands
start to manufacture more warm clothes. This type of planning becomes valuable to companies as it
helps plan them for events in the future and be prepared when winter comes. This gives the
companies meet their needs in time and also gives them time to figure out other logistics like where
to store the inventory.

3)Push and Pull Strategies in Practise:- In real life, no businesses rely entirely on either push or
pull logistics, but instead employ a mixture of the two to make the best use of them. Modern-day
supply chain operations are very complex and consist of some steps from getting the raw materials
to the delivery of the final product to the end consumer. The process roughly consists of the
following steps:

 Determining the availability of raw materials. Even before the product can begin to be made
it is important to plan where and how the raw materials can be acquired from cheaply.

 Processing the raw materials in a factory to yield the final products. This step varies from
company to company like food-based products, cloth-based product, etc.

 Then the finished product is taken to a storage facility or a distribution facility.

The packaged product is taken to a retail store or shipped directly to the customer as needed.

 Most supply chains in the world resemble this basic outline. Now, push and pull strategies
can be employed by planners by taking into account the expected demand and other factors.
The most successful shipping companies like Walmart and Amazon conduct a lot of research
into the various factors that determine demand and incorporate that knowledge into their
supply chain.

Amazon is one of the biggest online retailers in the world right now
8)Explain about Poter’s value chain Model?

Ans:- Porter’s Value Chain Model :-Porter’s model was essentially concerned with the internal activities
of the company. The three (basic) primary activities of a product process are:

 Inbound Logistics: Handling goods that are bought into the company, storing them and making
them available to operations as required.

 Operations: The production process, in many cases a series of sub activities that can be represented
on a detailed value chain analysis.

 Outbound Logistics: Taking the products of the company, storing them if necessary and
distributing them to the customer in a timely manner. To these basic primary activities Porter adds
two further primary activities:

 Marketing and Sales: Finding out the requirements of potential customers and letting them know
of the products and services that can be offered.

 Service: Any requirement for installation or advice before delivery and then after-sales service once
the transaction is completed.

To support these primary functions there will be a company infrastructure that performs a number of
support activities. Porter classifies these activities as:

 Procurement: The function of finding suppliers of the materials required as inputs to the operations
of the organization. Procurement is responsible for negotiating quality suppliers at an acceptable
price and with reliable delivery.

 Technology Development: The organization needs to update its production processes, train staff
and to manage innovation to ensure that its products and its overall range of goods and services
remain competitive.

 Human Resources Management: The recruitment, training and personnel management of the
people who work for the organization.

 Firm Infrastructure: The overall management of the company including planning and
accountancy.
9)Explain about competitive strategy?

Ans:- Definition:-Competitive Strategy is defined as the long term plan of a particular company in
order to gain competitive advantage over its competitors in the industry. It is aimed at creating
defensive position in an industry and generating a superior ROI (Return on Investment). Such type
of strategies play a very important role when industry is very competitive and consumers are
provided with almost similar products. One can take example of mobile phone market.

1. Cost Leadership :- Here, the objective of the firm is to become the lowest cost producer in the
industry and is achieved by producing in large scale which enables the firm to attain economies of
scale. High capacity utilization, good bargaining power, high technology implementation are some
of factors necessary to achieve cost leadership. e.g Micromax phones

2. Differentiation leadership:- Under this strategy, firm maintains unique features of its products
in the market thus creating a differentiating factor. With this differentiation leadership, firms target
to achieve market leadership. And firms charge a premium price for the products (due to high value
added features). Superior brand and quality, major distribution channels, consistent promotional
support etc. are the attributes of such products.E.g. BMW, Apple
3. Cost focus:-Under this strategy, firm concentrates on specific market segments and keeps its
products low priced in those segments. Such strategy helps firm to satisfy sufficient consumers and
gain popularity. E.g. Sonata watches

4. Differentiation focus:-Under this strategy, firm aims to differentiate itself from one or two
competitors, again in specific segments only. This type of differentiation is made to meet demands
of border customers who refrain from purchasing competitors’ products only due to missing of
small features. It is a clear niche marketing strategy. E.g. Titan watches

10)Explain about First mover Advantages?

Ans:- The ability to gain advantage from the innovative use of IS/IT can owe a lot to timing.
The first organization to implement a new type of ICT system will, if the system is successful, gain
the price advantage or the differentiation while competitors are still operating with traditional
methods and systems. The first mover can gain advantage but it is a risky business. New
technologies and new ways of using them are expensive to develop and are often not successful.
There are advantages to being a late mover: the idea has been tried, its effectiveness can be assessed
and the late mover can implement an improved version of the system.
In terms of the technology, the advantages are that it has been tested and will be cheaper and
easier to implement the second time round; it may be that standard components have been
developed or that packaged solutions are available, advantages that were not available to the first
mover. Newcomers to the e-Commerce scene, using EDI or Internet e-Commerce, have the
advantages of being able to benefit from the work of the pioneers without the need to contribute to
the development effort. The late move does not, however, have the ability to surprise competitors or the
market; it is essentially a catching up operation.
11) Explain about Sustainable Competitive Advantage?

Ans:- Competitive advantages are conditions that allow a company or country to produce a
good or service of equal value at a lower price or in a more desirable fashion. These conditions
allow the productive entity to generate more sales or superior margins compared to its market
rivals.
  BREAKING DOWN Competitive Advantage:- Competitive advantages generate greater
value for a firm and its shareholders because of certain strengths or conditions. The more
sustainable the competitive advantage, the more difficult it is for competitors to neutralize
the advantage. The two main types of competitive advantages are comparative
advantage and differential advantage.
 Comparative Advantage:- A firm's ability to produce a good or service more efficiently
than its competitors, which leads to greater profit margins, creates a comparative advantage.
Rational consumers will choose the cheaper of any two perfect substitutes offered. For
example, a car owner will buy gasoline from a gas station that is 5 cents cheaper other
stations in the area. For imperfect substitutes, like Pepsi versus Coke, higher margins for the
lowest-cost producers can eventually bring superior returns.
 Differential Advantage
A differential advantage is when a firm's products or services differ from its competitors'
offerings and are seen as superior. Advanced technology, patent-protected products or
processes, superior personnel and a strong brand identity are all drivers of differential
advantage. These factors support wide margins and large market shares.

Apple is famous for creating innovative products, such as the iPhone, and supporting their market
leadership with savvy marketing campaigns to build an elite brand. Major drug companies can also
market branded drugs at high price points because they are protected by patents.
 UNIT-2

1)Explain about characteristics of B2B E-commerce and procurement management by using

buyer’s internal market place?

Ans:- Business - to – Business :- Electronic commerce is an emerging concept that describes the
process of buying and selling or exchanging products, services and information via computer
networks including the Internet. E-Commerce can be mainly divided into Business-to-Business
electronic commerce (B2B EC) and Business-to-Consumer electronic commerce (B2C EC). B2B
EC implies that both sellers (suppliers) and buyers are business corporations, while B2C EC
implies that the buyers are individual consumers.
characteristics of B2B E-commerce:-
1)Longer decision making process

2)greater number of stakeholder/decision makers

3)relationships that last longer

4)A small number of leads/prospects

5)Different types of product knowledge

procurement management by using buyer’s internal market place:- Today, different

organizations employ various management techniques to carry out the efficient functioning of their
departments. Procurement management is one such form of management, where goods and services
are acquired from a different organization or firm.
1)Identifying Need:- Not all goods and services that a business requires need to be purchased from
outside. It is for this reason that it is very essential to weigh the pros and cons of purchasing or
renting these goods and services from outside.
2)Finding and qualifying the suppliers:- there may be several suppliers, who provide the same
goods and services, careful research would show you whom of these suppliers will give you the best
deal for your organization.
3)Requesting for proposal:- The next step typically would be to call for bids. During this stage,
the different suppliers will provide you with quotes.
4)Negotiating with suppliers:- you would be able to select the best supplier. You would then need
to move on to the step of discussing what should go into the contract
5)contracting:- . Remember to mention all financing terms how you wish to make the payments,
and so on, so as to prevent any confusion arising later on, as this contract will be binding.
6)Delivery:- In delivery process you need to evaluate the product and services deliverd with quality
7)Analyzing Results:-After project completion it is essential to analyze the process and evaluate its
success as well as record observation for future projects.
2)Explain about just in time delivery?

Ans:- Just-in-Time (JIT) logistics operate under the concept of receiving raw materials, products
and parts as they are needed, rather than days or even weeks before. This allows businesses to
significantly cut inventory costs by having fewer unnecessary supplies on hand and far less material
to store. As effective as Just-in-Time Delivery is, it can be difficult to coordinate large amounts of
shipments efficiently, especially when dealing with shipments that vary in size and destination.
With Just-in-Time Delivery services from Expedited Transportation, our team of experts and
superior customer service can coordinate your shipments for you; freeing you up to focus on what’s
important – your business’ bottom line.
JIT Services Include:
 Expert Customer Service
 Direct Trucking

 Time Definite Delivery

 Expedited Trucking Services

 Just-in-Time Freight Services

 Door to Door Services

Naturally, in order for Just-in-Time (JIT) inventory to work, there must be a great deal of efficiency
in logistics; coordinating shipments of different sizes to different locations. That’s where Expedited
Transportation comes in. Our experience and proven processes allow us to deliver shipments all
over the nation and across the world with reliability and efficiency.
3)Explain about B2B model in E-commerce?

Ans:-A website following the B2B business model sells its products to an intermediate buyer who
then sells the products to the final customer. As an example, a wholesaler places an order from a
company's website and after receiving the consignment, it sells the endproduct to the final customer
who comes to buy the product at the wholesaler's retail outlet.

B2B identifies both the seller as well as the buyer as business entities. B2B covers a large number
of applications, which enables business to form relationships with their distributors, re-sellers,
suppliers, etc. Following are the leading items in B2B eCommerce.

 Electronics
 Shipping and Warehousing

 Motor Vehicles

 Petrochemicals

 Paper

 Office products

 Food

 Agriculture
Key Technologies :- Following are the key technologies used in B2B e-commerce −
 Electronic Data Interchange (EDI) − EDI is an inter-organizational exchange of business
documents in a structured and machine processable format.
 Internet − Internet represents the World Wide Web or the network of networks connecting
computers across the world.
 Intranet − Intranet represents a dedicated network of computers within a single
organization.
 Extranet − Extranet represents a network where the outside business partners, suppliers, or
customers can have a limited access to a portion of enterprise intranet/network.
 Back-End Information System Integration − Back-end information systems are database
management systems used to manage the business data.
Architectural Models :- Following are the architectural models in B2B e-commerce −
 Supplier Oriented marketplace − In this type of model, a common marketplace provided
by supplier is used by both individual customers as well as business users. A supplier offers
an e-stores for sales promotion.
 Buyer Oriented marketplace − In this type of model, buyer has his/her own market place
or e-market. He invites suppliers to bid on product's catalog. A Buyer company opens a
bidding site.
 Intermediary Oriented marketplace − In this type of model, an intermediary company
runs a market place where business buyers and sellers can transact with each other.
4)Explain about Auctions and services from traditional to EDI?
Ans:- An auction is the process of buying and selling goods by offering them up for bid, taking
bids, and then selling the item to the winning bidder. In economic theory, an auction is a method
for determining the value of a commodity that has an undetermined or variable price.
Types of Auction:-
1) English auction: This is the type of auction commonly used by the English auction houses
like Sotheby's, Christie's, and Phillips. Participants bid openly against one another, with each
bid being higher than the previous bid. The auction ends when no participant is willing to bid
further, or when a pre-determined "buy-out" price is reached, at which point the highest
bidder pays the price.
 2) Dutch auction: In the traditional Dutch auction the auctioneer begins with a high asking
price, which is lowered until some participant is willing to accept the auctioneer's price, or a
predetermined minimum price is reached. That winning participant pays the last announced
price.
3) Sealed-bid first-price auction: Also known as Sealed High-Bid Auction or First-Price
Sealed-Bid Auction (FPSB). In this type of auction all bidders simultaneously submit bids so
that no bidder knows the bid of any other participant. The highest bidder pays the price they
submitted.

4) Sealed-bid second-price auction:- It is also also known as a Vickrey auction: This is

identical to the sealed first-price auction, except the winning bidder pays the second highest
bid rather than their own.
5) Reverse auction: A type of auction in which the role of the buyer and seller are reversed,
with the primary objective to drive purchase prices downward. In an ordinary auction (or
also known as forward auction), buyers compete to obtain a good or service. In a reverse
auction, sellers compete to obtain business.

5)Explain about integration with backend information system?

Ans:- Several years ago, before the explosion in ecommerce, many companies created a basic home
page, put it on the web, and that was the end of their online activity. But today, a simple home page
no longer suffices. You must ecommerce-enable your website-in other words, be able to sell
product via your site. And since a goal of an ecommerce-enabled website is to provide a shopping
experience that’s as smooth and transparent as going to a bricks-and-mortar store or placing an
order over the phone, you should never view your electronic commerce applications as an isolated
sales channel. Instead, your website should be coordinated with your traditional back-end systems.
In an ideal world, you’ll want to implement a full, seamless integration between the two
systems.But it can be expensive. To completely integrate a website with an existing catalog order
entry system can be costly. This includes the software that creates the actual website pages, the
shopping cart and the product search engine, and an electronic data interchange (EDI) system than
enables online customers to receive real-time inventory and order status.
Phased Approach?

Phase 1: Sell only a subset of items (one product family) online, and use manual integration.
Customers will still be able to order from your site. But you will need to print out the online orders,
keypunch each order into your existing back-end system, and then manually enter the ensuing order
status into the electronic commerce system. Because you’ll likely be batch-processing the online
orders-downloading all of them once a day-orders submitted early in the day aren’t likely to be
fulfilled till at least the next morning, which may result in customers receiving their orders later
than they expected.

Phase 2: Sell your entire product line, and feature limited integration. Limited integration varies
depending on your priorities: Do you urgently need the ability to provide customer-specific pricing?
A real-time link to customer service? Most likely, your top priority will be to put an end to
manually rekeying orders. You can buy an EDI system that transmits online orders to your catalog
order-entry software.

Phase 3: Implement full integration with existing back-end. At this stage, your system will process
and fulfill online orders as effortlessly as orders taken by phone or fax.

But you may wonder why you should bother moving from phase 2 into phase 3. The arguments for
building a fully integrated online catalog are too compelling to ignore: * Up-to-date access. *
Improved service * Reduced costs

6)Explain Role of software agents for b2b E-commerce?

Ans:- Software agents are a piece of software which works for the user. However software agent is
not just a program. An agent is a system situated within and a part of an environment that senses
that environment and acts on it.

Type of Software agents:- Agents are classified into different types based on the characteristics
they posses. In order to possess the above properties agents must have distinct features such as
locomotion, integration, co-operation, information, stimulation

1)Collaborative agents: A collaborative agent is a software program that helps users solve
problem, especially in complex or unfamiliar domains by correcting errors, suggesting what to do
next, and taking care of low level details. Collaborative agents are also refereed as collagen
2)Mobile agents: A mobile agent is an executing program that can migrate during execution from
one machine to another in a heterogeneous network . Mobile agents are used to solve many problem
of network computing with minimum bandwidth and connectivity

3) Interface agents: Interface agents are computer programs that employ machine learning
techniques in order to provide assistance to a user dealing with a particular application

4) Hybrid agents: Combining two or more of the previous mentioned agent philosophies will yield
a better functioning agent.

7)Explain about Electronic marketing in B2B?

Ans:-
1) Educate Your Prospects:- Never push your client to purchase your organization’s products
and services. Share each and every detail with the client and let them take their own decision.
Don’t rely only on verbal communication. Communicate through emails. Be careful about your
subject line. A client would not bother to check your mail if your subject line is not effective.

2) Creating a New Framework :-when marketers used to push their brands among their
customers by simple ways of promotion i.e. advertising, banners, pamphlets and so on. Make
your clients aware how your organization’s products and services can benefit their operations
and bring in revenue. Share online brochures, pamphlets with your client.

3) Communication:- Communication is one of the most essential ways through which an

organization shares information about its products and services with the client. In today’s
scenario mere communication does not help, communication needs to be effective. Marketing
representatives must not attend any business meeting without his/her business card. Keep your
business cards either in your wallet or laptop bag which you carry daily to work. Make sure your
business card carries all the necessary information about you(contact number, email id) and your
organization. Sharing your visiting card is the first level of communication between you and
client. Do not forget to take your client’s business card as well. Don’t be after your client’s life.
Send him gentle reminders through emails.

4) Don’t Speak the Same Language:- Always personalize your emails as per the designation and
responsibilities shared by the individual representing your client. Address your client by his or
name. Do not share information with a single person in loop and everyone else in cc.You just
can’t send the same mail to the CEO as well as the CFO as their requirements would be
different. Understand the requirement first before sending mails.

5) Online Training Portals :- Train your clients through web based trainings. Ask the clients to
create their own login id and passwords. Share necessary information about your product and
services in the portal itself for the client to login and go through necessary information. Arrange
online trainings where the trainer addresses even the minutest query of the client. Web meeting
is one of the most cost effective ways of communicating with the clients
6) Product Feedback:- It is essential to take regular feedback of your products and services. The
clients can give their valuable feedback on your website only. The feedbacks and reviews must
be regularly monitored. Assign a single resource for the same.

7) Good relationship:-Share a good and healthy relationship with your client. Don’t forget to wish
your client on important occasions through email. It works!!

8)Explain about managerial issues in b2b?

Ans:-
1. BULK DEAL PRICING :- Most B2B eCommerce companies base their pricing structure on
volume. This challenges processing systems. To resolve the issue, IT managers can work with
content management software companies to set up a system that permits volume discounts when
companies order a specified amount of a product.
2. MAINTAINING CLIENT RELATIONSHIPS :-A unique challenge that B2B
eCommerce companies face is the need to stay on top of and consider the health of each client’s
account. If an existing account is delinquent or inactive, then the company must have a follow up
strategy in place for the good of its own business. An IT team can resolve this by integrating CRM
software with the company’s e commerce business platform. CRM software is necessary since it
manages client interactions and overall communications. With system integration, companies are
able to speed up their service, which has the added benefit of reducing overhead.

3. CUSTOMIZABLE SHOPPING CART :- When a B2B eCommerce company is derived from

a parent company that offers several product lines or different brands, then the eCommerce side will
need a platform that supports customized shopping carts. Since many companies are large in scale,
they may offer hundreds of different product lines as well as thousands of items from various
manufacturers. In addition, buyers need to locate products easily to compare prices and features.
4. SHIPPING SOLUTIONS:- It is imperative that orders reach clients on time. To handle this
challenge, IT managers may integrate shipping software into a company’s existing platform.
5. SALE COMPLETION TIMES:-Google reports that B2B buyers complete 12 searches on
average before they settle on a company. To make a decision, buyers review product features,
specifications and benefits. They also assess pricing structures and consider how a particular
product fits in with their services, existing merchandise or equipment. To place an order, most
purchasers need multiple quotes to satisfy their internal approval process.
6. LARGE QUANTITY TRANSACTIONS :-Some orders may come to just $20 or $40 while
others reach amounts that total in the thousands as major corporations have the funds to make large
purchases. In addition, many of today’s businesses place large purchase orders online because it's
convenient and saves time.
7. CREATING A USER-FRIENDLY EXPERIENCE :-Along with providing a self-service
option for customers, a B2B eCommerce company may need to set up a self-service system for its
vendors. Some clients prefer to set up automatic purchase orders to restock inventory while others
run into the occasional emergency that requires an overnight shipment.

8)Explain about edi: the nuts and bolts edi standards?

Ans:-
 At the heart of any EDI application is the EDI standard. The essence of EDI is the coding &

structuring of the data into a common & generally accepted format.

 Documents sent via EDI can serve as input for a receiving a company's business application

because they are formatted according to standards that stipulate where certain information

should be located, such as where net total amount should appear on an invoice.

 These standards also define how individual pieces of information should be represented. For

example, in the standards for an electronics industry purchase order, there are specific codes

defined to identify the type of product or service being requested, e.g. PN (company part

number), BY (buyers part number), VP (vendors part number), PW (part drawing), etc.

Types of EDI standards:

 Proprietary standard - EDI standard developed for a specific company or industry. This is
also called a non-public or private standard.

 Public standard - EDI standard developed for use across one or more industries.

Unit-3
1)Explain about Automotive network Exchange?
Ans:- Automotive Network Exchange - the Largest Extranet:-
  Companies in the automotive market swap supply and manufacturing data
 Involve 10,000+ companies
 Include CAD/CAM file transfers, Electronic Data Interchange (EDI), e-mail, and
groupware
 The network’s EDI element alone will slice $71 from the cost of designing and building
each car
 Savings of $1 billion a year for the Industry
 Chrysler will pay for fewer T1 Lines and satellite connections
 Standardizing one protocol-IP will reduce support costs
 The time it takes to turn around an order will be much shorter
 The faster the parts come in, the faster the cars leave the assembly line, the larger the
customer satisfaction and manufacturer’s profit
 Business-to-business virtual private networks (VPN) are used
2)Explain about architecture of internet,intanet and extranet?
Ans:- The Internet, intranet, and extranet are the most popular platforms for e-commerce. In
Internet is the most common platform for B2C e-commerce; the intranet is most the common for
platform for corporate internal management; and the extranet is the most common platform for B2B
e-commerce.
Network Type Typical Users Access Type of information

The Internet Any individual with Unlimited public; no General public, and
dial-up access or restrictions advertorial
LAN

Intranet Authorized Private and restricted Specific, corporate,

employees only and proprietary

Extranet Authorized groups Private and Shared in authorized

from collaborating authorized outside collaborating groups
companies partners
The Internet
The Internet is a public and global communication network that provides direct connectivity to
anyone over a local area network (LAN) or Internet Service Provider (ISP). The Internet is a
public network that is connected and routed over gateways. End users are connected to local access
providers (LANs or ISPs), who are connected to the Internet access providers, to network access
providers, and eventually to the Internet backbone. Since access to the Internet is open to all, there
is a lack of control that may result in an unruly proliferation of information.

The Intranet: An Intrabusiness Delivery System

An intranet is a corporate LAN or wide area network (WAN) that uses Internet technology and is
secured behind company’s firewalls (see security and protection) as depicted in Figure . The
intranet links various servers, clients, databases, and application programs like Enterprise Resource
Planning (ERP). Although intranets are developed on the same TCP/IP protocol as the Internet, they
operate as a private network with limited access. Only authorized employees are able to use it.
Intranets are limited to information pertinent to the company and contain exclusive and often
proprietary and sensitive information. The firewalls protect the intranets from unauthorized outside
access; the intranet can be used to enhance the communications and collaboration among authorized
employees, customers, suppliers, and other business partners. Since the intranet allows access
through the Internet, it does not require any additional implementation of leased networks. This
open and flexible connectivity is a major capability and advantage of intranet. Intranets provide the
infrastructure for many intrabusiness commerce applications.

The Extranet
An extranet, or “extended intranet”, uses the TCP/IP protocol network of the Internet, to link
intranets in different locations. Extranet transmission are usually conducted over the Internet, which
offers little privacy or transmission security. Therefore, when using an extranet, it is necessary to
improve the security of connecting portions of he Internet. This can be done by creating tunnels (see
paragraph on security and protection) of secured data flows, using cryptography and authorization
algorithm. The Internet with tunneling technology is known as a virtually private network (VPN).
Extranets provide secured connectivity between corporation’s intranets and the intranets of its
business partners, material suppliers, financial services, government, and customers. Access to
intranets is usually limited by agreements of the collaborating parties, is strictly controlled, and is
only available to authorized personnel. The protected environment of the extranet allows groups to
collaborate, sharing information exclusively, and exchanging it securely. Since an extranet allows
connectivity between business through the Internet, it is an open and flexible platform suitable for
supply chain management. To increase security, many companies replicate the database they are
willing to share with their business partners and separate them physically from their regular
intranets.

3)Explain about application of intranet and case studies?

Ans:- Applications :-Intranet applications are same as that of Internet applications. Intranet
applications are also accessed through a web browser. The only difference is that, Intranet
applications reside on local server while Internet applications reside on remote server. Here, we've
discussed some of these applications:

 Document publication applications:- Document publication applications allow publishing

documents such as manuals, software guide, employee profits etc without use of paper.
 Electronic resources applications:- It offers electronic resources such as software
applications, templates and tools, to be shared across the network.
 Interactive Communication applications :-Like on internet, we have e-mail and chat like
applications for Intranet, hence offering an interactive communication among employees.
 Support for Internet Applications:- Intranet offers an environment to deploy and test
applications before placing them on Internet.
4)Explain about consideration of intranet deployment?
Ans:-
1 Gain executive sponsorship:- By definition, the intranet is an enterprise-wide system. By
extension, it affects the entire enterprise—from information technology (IT) architecture and
purchases to the design of electronic documents, from employee and corporate communications to
collaborative work, from the display of confidential information to the posting of the latest joke off
of the Internet.

2 Establish a project team:- A project team helps crystallize the stated objective for the intranet,
initiates and oversees publishing standards, evaluates and specifies intranet tools and applications,
and provides the change management consulting that typically accompanies any change in
organizational dynamics.

3 Build a structure:- “The key characteristic of this technology is its ability to shift control of
information flow from the information creators to the information users.”

4 Establish standards:-Intranet standards are critical: design standards, publishing standards,

technology standards—you name it.

5 Resolve IT issues:-The IT department gets involved when the intranet discussions become
technical

6 Focus on cultural issues:- Technology is just one of the intranet challenges facing management.
Cultural challenges must also be overcome. For instance, consider the “simple” purchase of desktop
computers, especially for standalone (kiosk) access to the intranet. In many enterprises, desktop
buys are a distributed function, the participants of which might be loath to following a technology
standard from on high.

7 Start small:-Inaugurate the intranet with a pilot. In need not be fancy. It doesn’t have to be
packed with content. Part of it can even run from a CD-ROM. Because most people already know
how the Internet works, the pilot only has to demonstrate the possibilities of this communications
medium within the enterprise. It should show how easy it is to post and find information, as well as
demonstrate the effectiveness of display designs, informational structures, and Web-based tools. A
secondary outcome of the pilot would be to evaluate such issues as design, response times, policies,
and the ability to find, access, and post information.

8 Deliver tools:- An intranet toolkit is a must. Obviously, the toolkit delivers the computer-based
tools to “publish” on the intranet.

9 Perform an audit:-who is accessing what on the intranet and how often; by what path do users
surf the various sites on the intranet; and of course the technical issues, such as response times at
various times during the day.
5)Explain structure and application of extranet and its product and services?
Ans:- The Structure of Extranets:-Extranets are comprised of a wide variety of components and

participants, and there are several possible configurations. These include intranet, Web servers,
Firewall, ISP’s tunneling technology, interface software and business applications. The tunneling
means that data transmission across the internet can be made secure by authenticating and
encrypting all IP packets. Extranets are configured by two basic methods: They can be implemented
using a direct leased line with full control over it, linking all intranets. A secure link (tunnel) can be
created across the Internet, which can be used by the corporation as a VPN, usually at a much lower
cost.
Extranet Products and Services :- Four Categories of extranet products and services.
1. Extranet development tools: to design extranet servers, a clientbase, security, EC applications,
and electronic catalogs.
2. Extranet hosting and network connectivity: provide secure ISP connections to Internet back
bones and host extranet services for corporations.
3. Extranet services provide extranet design expertise with proprietary tools or turnkey services for
building and operating extranet-based services for corporate clients.
4. Virtual private networks: provide components specifically design for connecting remote
operators and creating IP WANs for corporations
Applications of Extranets :-
1. Enhanced communication:- Improved internal communication, Improved business partnership
channels ,Effective marketing, sales and customer support and Collaborative activities support
2. Productivity enhancements:- Just-in-time information delivery ,Reduction of information
overload ,Productivity collaboration between work groups and Training on demand
3. Business enhancements:- Faster time to market, Simultaneous engineering potential, Lower
design and production costs ,Improved client relationships and New business opportunities
4. Cost reduction:- Reduced error Reduced travel and meeting Improved comparison shopping
Reduced administrative and operational costs
5. Information delivery:- Low-cost publishing ,Leveraging of legacy systems ,Standard delivery
systems, Ease of maintenance and implementation Elimination of paper publishing and mailing
costs.
6)Explain about E-payment system?
Ans:- E-payment system is a way of making transactions or paying for goods and services through
an electronic medium without the use of check or cash. It’s also called an electronic payment
system or online payment system. Read on to learn more.
The electronic payment system has grown increasingly over the last decades due to the widely
spread of internet-based banking and shopping. As the world advance more on technology
development, a lot of electronic payment systems and payment processing devices have been
developed to increase, improve and provide secure e-payment transactions while decreasing the
percentage of check and cash transaction.

Electronic payment methods

E-payment methods could be classified into two areas, which are:

1. Cash Payment System

Electronic Funds Transfer (EFT): this is an electronic system used to transfer money from one bank
account to another without any cash exchange by hand.EFT comprises many other concepts of
payment system include:
 Direct debit, that is a financial transaction in which the account holder instructs the bank to
collect a specific amount of money from his account electronically for payment of goods or
services.

 E-Check, a digital version of an old paper check. It’s an electronic transfer of money from a
bank account, usually checking account without the use of the paper check.

 Electronic billing: this is another form of electronic funds transfer used by companies or
businesses to collect payments from customers over electronic method.

2. Credit Payment System :-

Credit Card: this is another form of the e-payment system which required the use of the card
issued by a financial institute to the cardholder for making payments online or through an electronic
device without the use of cash.

E-Wallet: it is a form of prepaid account that stored user’s financial data like debit and credit card
information to make an online transaction easier.

Smart card: this use a plastic card embedded with the microprocessor that can be loaded with
funds to make transactions and instant payment of bills. It is also known as a chip card.
7)Explain about issues and challenges in E-payment system?

Ans:-

Lack of Usability :-Electronic payment system requires large amount of information from end
users or make transactions more difficult by using complex elaborated websites interfaces.

Lack of Security :-Online payment systems for the internet are an easy target for stealing money
and personal information. Customers have to provide credit card and payment account details and
other personal information online

Issues with e-Cash The main problem of e-cash is that it is not universally accepted because it is
necessary that the commercial establishment accept it as payment method. Another problem is that
when we makes payment by using e-cash, the client and the salesman have accounts in the same
bank which issue e-cash. The payment is not valid in other banks.

Lack of Trust:- Electronic payments have a long history of fraud, misuse and low reliability

Lack of Awareness :-Making online payment is not an easy task. Even educated people also face
problems in making online payments. Therefore, they always prefer traditional way of shopping
instead of online shopping. Sometimes there is a technical problem in server customers tried to do
online payments but they fails to do. As a result they avoid it.

Online Payments are not Feasible in Rural Areas :-The population of rural areas is not very
literate and they are also not able to operate computers. As they are unaware about technological
innovations, they are not interested in online payments. So the online payment systems are not
feasible for villagers.

Highly Expensive and Time Consuming:- Electronic payment system are highly expensive
because it includes set up cost, machine cost, management cost etc and this mode of payment will
take more time than the physical mode of payment.
 UNIT-4

1)Explain about legal issues?

ANS:-Legal Issues:- The world is used to conducting business and commerce on signed paper
documents. Two millennia of commerce has been based on the written document with its value
‘authorized’ by the signature of a duly authorized officer. Strong legal framework for ensuring that
electronic documents will have a legal binding effect, subject to national laws and regulations. The
issues, which were addressed by the working party, which prepared this model Interchange
Agreement, are as follows:

1. Selection of EDI messages, standards and the methods of communication.

2. Responsibilities for ensuring that the equipment, software and services are operated and
maintained effectively
3. Security procedures and services;
4. The points at which EDI messages have legal effect.
5. The roles and contracts of any third-party service providers.
6. Procedures for dealing with technical errors.
7. The need (if any) for confidentiality.
8. Liabilities in the event of any delay or failure to meet agreed EDI communications requirement.
9. The laws governing the interchange of EDI messages and the arrangements of the parties. 11.
Methods for resolving any possible disputes.
Legal and Ethical Issues Overview:-

1. Privacy: Data Protection Act , 1998 (rev.) (UK); European Legislation gives data protection and
privacy.

2.Intellectual Property Protection:- IT IS Difficult to protect: all countries implement Copyright

Protection.Easy and inexpensive to copy and disseminate digitised information
3. Free Speech:-Internet provides major opportunity for free speech:
i. May be inimical to some Political Regimes
ii. Allows Extreme Views to be Transmitted: Terrorism; Pornography; Anti-Government
Viewpoints; Criminal Activities; Pedophile Groups, etc.
4.Taxation:- Currently illegal to impose new sales taxes on Internet business (but since July 2003,
Internet purchases in Europe attract VAT at destination country’s rate)
5.Consumer Protection:-Large number of legal issues related to electronic trade: Safety; Health;
Standards; Criminal Liability; Identity; Repudiation; Contract Enforcement
2)Explain about ethical and other public policy issues?

Ans:-

 Ethics: Study of principles that individuals and organizations use to determine right and wrong
courses of action

 Responsibility: As free moral agents, individuals, organizations and societies are responsible
for the actions they take

 Accountability: Individuals, organizations and societies should be held accountable to others

for the consequences of their actions

 Liability: Extends the concepts of responsibility and accountability to area of law

 Due process: Refers to process by which laws are known and understood, with ability to appeal
to higher authorities to ensure that laws have been correctly applied

3)Explain about protecting privacy in e-commerce?

Ans:- The Concept of Privacy:-

Privacy is the moral right of individuals to be left alone, free from surveillance or interference from
other individuals or organizations, including the state. Privacy is a girder supporting freedom:
Without the privacy required to think, write, plan, and associate independently and without fear,
social and political freedom is weakened, and perhaps destroyed. Information privacy is a subset of
privacy. The right to information privacy includes both the claim that certain information should not
be collected at all by governments or business firms, and the claim of individuals to control over
personal of whatever information that is collected about them. Individual control over personal
information is at the core of the privacy concept. Due process also plays an important role in
defining privacy.

Protecting privacy:-

• May be explicitly granted or derived from constitutions (U.S., Canada, Germany)

• May also be found in common law (U.S, UK, Australia, NZ)
• Hong Kong: Basic Law - Articles 29 & 30 of the Constitution and Personal Data (Privacy)
Ordinance December, 1996
• Japan: Article 13 of the Constitution addresses both individual and corporate privacy rights
and 1988 Guidelines on Protection of Private Data
• In U.S, also found in federal and state laws and regulations
• Most other countries have similar legislation
4)Explain about protecting Intellectual property?

Ans:- protecting Intellectual property: Encompasses all tangible and intangible products of
human mind
• Major ethical issue: How should we treat property that belongs to others
• Major social issue: Is there continued value in protecting intellectual property in the Internet
age?
• Major political issue: If, and if so, how, should Internet and e-commerce be
regulated/governed to protect intellectual property
• Main types of intellectual property protection:
1. Copyright: - Protects original forms of expression (but not ideas) from being copied by
others for a period of time
2. Patent: - Grants owner a 20-year exclusive monopoly on ideas behind an invention
3. Trademark law:- Identify, distinguish goods, and indicate their source. Ensure consumer gets
what is paid for/expected to receive. Protect owner against piracy and misappropriation

5)Explain about Taxation?

Ans:- Important Macroeconomic Issue: - Governments want to benefit from growth in Internet
Trade
• US: Internet Tax Freedom Act (1998) – 3-year moratorium (extended)
• US estimate: $3 - $4 billion lost Tax Revenue p.a.
• European Union: VAT Principle (neutrality; simplicity)
• Europe: Based on Country of Consumption:
NO NEW taxes (allegedly) - although EU governments are concerned about VAT leakages,
and have acted to close this loophole
• Since July 2003, VAT is payable on internet purchases made in countries OUTSIDE the EU
- US companies have to remit the tax revenue to the EU country at the appropriate rate:
“taxation without representation”
• Customs: World Trade Organisation (WTO) rules apply
6)Explain about Free speech?

Ans:-

 Internet is a form of “public speech”.

 different national perspectives on free speech be managed in a global environment like the
Internet.

 Given that the Internet is supported by governments and private companies, should these
institutional and corporate needs supersede the free speech rights of individuals on the
Internet

7)Explain about Encryption policy?

Ans:- Encryption policy: Encryption is a technique for hiding data. The encrypted data can be

read only by those users for whom it is intended. Nowadays various encryption techniques are

available. One of the available techniques commonly used for encryption is Public Key. In Public

Key encryption system, RSA Data Security of Redwood City offers the most popular and

commercially available algorithm. In a Public Key encryption system each user has two keys-

public key and private key. The encryption and decryption algorithms are designed in a way so that

only the private key can decrypt data that is encrypted by the public key. And the public key can

decrypt data, encrypted by the private key. Therefore, one can broadcast the public key to all users.

Data Encryption Standard (DES):- DES is secret-key, symmetric cryptosystem: When used for

communication, both sender and receiver must know the same secret key, which is used both to

encrypt and decrypt the message. DES can also be used for single user encryption, for example, to

store files on a hard disk in encrypted form. In a multi-user environment, however, secure-key

distribution becomes difficult; public-key cryptography, discussed in the next subsection, was

developed to solve this problem.

8)Explain about contracts and gambling legal issues?
Ans:- Contracts are agreements that are legally enforceable. A contract may involve a

duty to do or refrain from doing something, and the failure to perform such duty is

called a breach of contract. The law provides remedies if a promise is breached-

aiming to restore the person wronged to the position they would occupy if the

contract had not been breached, rather than punish the breaching party. The

existence of a contract requires:

a) an offer;

b) an acceptance of that offer which results in a meeting of the minds,

c) a promise to perform,

d) a valuable consideration,

e) a time or event when performance must be made,

f) terms and conditions for performance,

g) performance, if the contract is "unilateral".

Gambling:-A person engages in gambling if he takes or risks something of value upon the
outcome of a contest of chance not under his control or influence, upon an agreement or
understanding that he or someone else will receive something of value in the event of a certain
outcome. Gambling does not include bonafide business transactions valid under the law of
contracts, such as the purchase or sale at a future date of securities or commodities, contracts of
indemnity or guaranty and life, health or accident insurance.

Federal law defines illegal gambling activity as:

1) Is a violation of the law of the state in which it is conducted; and

2) Involves five or more persons who conduct, finance, manage, supervise, direct or
own all or part of such business; and
 3) Has been or remains in substantially continuous operation for a period in excess
of thirty days, or has a gross revenue of $2,000 in any single day.

Unit-5
1)Explain about network of networks?
Ans:- A Network of Network

 The internet is a network of thousands of inter connected networks .Included among the

interconnected networks are:

 The interconnected backbones that have international reach.

 A multitude of access/delivery subnetworks are provided by the local and regional Internet

service providers(ISPs).

 Infact, the request and response are each broken into packets, and the packets can follow

different paths.

 The paths traversed by the packets are determined by special computers called routers. The

routers have updateable maps of the networks on the internet that enable them to determine the

paths for the packets.

2)Explain about internet protocols?

Ans:- A protocol is a set of rules that determines how two computers communicate with one
another over a network.The protocols around which the internet was designed embody a series of
design principles.  Interoperable  Layered  Simple  End –to-End
TCP/IP:-The protocol that solves the global internetworking problem is the Transmission Control
Protocol/Internet Protocol(TCP/IP). The TCP ensures that two computers can communicate with
one another in a reliable fashion.Each TCP communication must be acknowledged in a reasonable
time, then the sending computer must transmit the data. In order for one computer to send a request
or a response to another computer on the internet, the request or response must be divided into
packets that are labeled with the addresses of the sending and receiving computers.This is where IP
comes into play. The IP formats the packets and assign addresses.

3)Explain about web -based client/server?

Ans:- WEB-BASED CLIENT/SERVER:-
 The vast majority of EC applications are web based. In such applications, the clients are called
web browsers and the servers are simply called web servers, like other client/server application
s,web browsers and servers need a way
 To locate each other so they can send requests and responses back and forth and
 To communicate with one another . To fulfill these needs, a new addressing scheme –the URL –
and a new protocol – HyperText Transport Protocol (HTTP) – were introduced.
HYPERTEXT TRANSPORT PROTOCOL :- When users navigate from one page to the another
by clicking on hypertext links within a page.when a user does this, a series of actions takes place
behind the scenes.First, a connection is made to the web server specified in the URL associated
with the link. Next, the browser issues a request to the server, say to “GET” the web page located in
the directory specified by the associated URL. The structure of the GET request is simply “GET
url”(e.g., “GET www.ge.com”).The server retrieves the specified page and returns it to the browser
.WEB BROWSER:- Their primary function was to display web documents containing text and
simple graphics. Today, the two major browsers in the market – Netscape communicator4.0 and
Microsoft’s Internet
WEB SERVER :-
 A web server is not a hardware platform;it is a software program. In the UNIX world this

program is called an http daemon. In the windows NT world the program is known as an http

service. The primary function of all of these programs is to service HTTP requests. In addition,

they also perform the following functions :

 Provide access control on the web server.

 Providing real time access to databases and other dynamic data.This is done through various

application programming interfaces . Enable management and administration of both the server

functions and the contents of the website .

 Log transactions that the users make.

4)Explain about internet security?

Ans:- CORNERSTONES OF SECURITY:- Security is often cited as a major barrier to EC,
prospective buyers, for example, are leery of sending credit card information over the Web.
Prospective sellers worry that hackers will compromise their systems.while the need for security
breaches. The National Computer Security Association (NCSA) has identified four cornerstones of
secure EC, Included are:  Authenticity  Privacy.  Integrity.  Non repudiation.
A firewall is a network node consisting of both hardware and software that isolates a private
network. There are two basic types of firewalls: dual homed gateway and screen-host gateway.
 In a dual-homed gateway a special server called the base station gateway connects a private
internal network to the outside internet.
 With a screen-host gateway a network router is used to control access to the bastion
gateway. The router ensures that all inbound traffic must pass through the bastion gateway.
A popular variant of the screened-host is the screened subnet gateway in which the bastion
gateway offers access to a small segment of the internal network. The open subnet is known
as the demilitarized zone. The idea behind the screened subnet is that there is no way for
outside traffic to gain access to any of the other hosts on the internal network.
5)Explain about selling on web?
Ans:- The TCP/IP, web browsers, commercial web servers, encryption, and firewalls provide an
open foundation for creating web site that can easily support marketing and service activities. They
provide an infrastructure for conducting business online. Just like their physical counter parts,
online store must provide the means:
Discover, search for, and compare products for purchase;
Select a product to be purchase and determine its total price;
Place an order for products;
Confirm order, or ensuring that the desire product is available;
To pay for products;
To verify credit
To process order
To verify shipment;
Provide feedback to the seller
6)Explain about chatting on web?
Ans:-
 Online forum and chat group technologies offer a variety of business opportunities.
 Chat groups involving customers and helpline staff are one way of offering enhanced customer
services.
 Communication centers:
 Virtual meeting places can be created and fees charged for participation.
One example is Match. COM (www.match.com) , web chat broad casting system
(www.wbs.com) , contain 200 chat rooms.
Customer services:
A number of customer services site now offer online support where customers can converse with
help line staff and other customer.
Most online support center are organized as forums rather than chat groups.
7)Explain about multimedia delivery?
Ans:- The way in which audio, video and other multimedia content are being delivered over the
internet are
 Web casting: Web casting is a term used to describe internet-based broad casting of audio and
video content.
One of the leading arena is Real Networks.&
Web casting ranges from simple text streams; to periodic transmission of webcam images; to
low quality audio and animation; to high end CD quality audio; and full motion, full screen video.
8)Explain about Managerial issues for establishing EC sites?
Ans;-
 Are there new business opportunities utilizing the intranet and extranet?
 Consider whether the business requirements can best be met by the intranet or the extranet.
 Consult the technical people inside and outside to find the most secure and economical
implementation plan.
 Review the current proprietary or leased network and decide whether it can be replaced by
intranet and extranet.
 If you are implementing the technologies of electronic commerce, find out the niche market
of intranet and extranet technology, possibly with a business model.