E-Commerce - (MCA-649)

01 March 2024 11:00 AM

E-Commerce:- sharing of business information, maintaining business relationships and conducting business transaction using computers connected to
telecommunication network is called e-commerce.
Electronic commerce commonly known as e commerce, is trading in products or services using computer networks such as Internet. It draws on technology such as mobile
commerce, electronic fund transfer, SCM, Internet marketing online transaction processing, electronic data interchange, inventory management system and automated
data collection system.

E commerce categories:
1. Electronic-market: Present a range of offerings available in a market segment so that the purchase can compare the price of the offering and make a purchase
decisions.
E.g.: Airline booking
2. Electronic data interchange: It provides a standardized system communicated from one computer to another without the need for printed orders and invoices
delays and errors in paper handling.
It is used by the organization's that make a large number of transaction regularly.
3. Internet Commerce: It is used to advertise and make sales of white rein of goods and services. This application is for both B-B and B-C transactions.
Example:- The purchase of goods that are then transferred by post or the booking of tickets that can be picked up by the clients when they arrive at the event.

Advantages of e-commerce:
1. Buying or selling a variety of goods and services from one's home or business.
2. Anywhere, anytime transactions.
3. Can look for lowest cost for specific goods or services.
4. Business can reach out to the worldwide client scan established business partnerships.
5. Order processing cost reduced.
6. Electronic fund transfer is faster.
7. Supply chain management is simpler, faster and cheaper using e-commerce.

Disadvantages of e-commerce:
1. Electronic data interchange is expensive for small businesses.
2. Security of Internet is not very good can be attacked viruses and hackers.
3. Privacy of e-commerce is not guaranteed.

Features of e-commerce:
• Global Reach:
The technology reaches commerce is enabled across cultural and across national boundaries around the Earth.
National boundaries seamlessly and without modification market space includes potentially consumers and millions of business worldwide.
• Universal Standard:
There is a one set of technical media standard technology, namely, Internet across the global.
• Richness:
Video, audio and text marketing messages are possible. It is integrated into a single marketing message and consuming experience.
• Information Density:
The technology information processing, storage and reduce information cost and raises the quality.
Communication cost drop dramatically while currency, accuracy and timeliness improve greatly. Information becomes plentifully, cheap and accurate.
• Personalized or Customized:
The personalization on marketing message and technology allows personalized messages to customization of products and services are delivered to
individuals as well as groups used on individual characteristics.
• Ubiquity:
Internet or web technology is the market place extended beyond traditional available everywhere at work, at home and boundaries are removed from a
temporal and elsewhere via mobile devices, geographic locations anytime. Customers convenience is enhanced and shopping cost is reduced.

Incentives of E- commerce:
Incentives are the things that employ gain from its company, other than salary .
It is defined as the thing that encourage and motivate an individual to do something.
It is always associated with performance to get incentives one should achieves given target. Different employees may gain different incentives depending
upon job nature of task achievements of targets etc.

Why Incentives are important:

• It helps to attract talented, skilled and educated employee in the organization.
• It increases productivity and efficiency of employees.
• It improves employer and employee relationship.
• It promote teamwork. Develop positive brand image.

Types of incentives:
1. Financial
2. Non-financial
Financial: Pay and announces, bonus, commission, retirement plans, increments, insurance benefits.
Non-Financial: Job security, job enrichment, good working environment, flexible working hours, gifts of festivals, status, recognition of work.
Key factors of incentives for engaging in e-commerce:
1. Selection of value: Attractive product, satisfaction guarantees and customer support after the sale.
2. Performance and service- It is fast easy navigation, shopping purchasing, prompt shipping and delivery.
3. Look and feel - Attractive baby store font websites shopping areas multimedia product catalog pages and shopping features full list of Full list of

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 3. Look and feel - Attractive baby store font websites shopping areas multimedia product catalog pages and shopping features full list of Full list of
4. Advertising and incentives- targeted web page advertising and email promotions discount and special offers.
5. Personal attention- Personal webpages, personalized product recommendation, product advertising, email notices and interactive support for all the
customers.
6. Community relationship - Virtual community of customers suppliers company representative and others via news groups, chats and links to related sites.
7. Security and Reliability:- Security of customer information, website transactions, trustworthy product info and reliable order fulfillment

Different Types of E-Commerce:

1. B2B:
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 e-commerce will continue to grow faster than the B2C segment.
The B2B market has two primary components: e-infrastructure and e-markets.
E-infrastructure is the architecture of B2B, primarily consisting of the following:
• 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);
2. B2C:
It is 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.
It is the second largest and the earliest form of e-commerce.
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.
3. C2C(Customer to Customer/Consumer to Consumer):
It is simply commerce between private individuals or consumers. This type of E commerce is characterized by the growth of e-market places and online
auctions particularly in vertical industries where firms or businesses can bid for what they want from among multiple suppliers. It perhaps has the
greatest potential for developing new markets.

Forces behind E-Commerce:

1. E-commerce enables businesses to interact with suppliers, customers and with players in the distribution channel at a lower cost.
2. The cost of installing and maintaining a website is much cheaper than owning a physical store. This motivates the growth of e-commerce.
3. E-commerce generates greater profits due to less human intervention, lower overhead cost, few clerical errors and more efficiency.
4. The cost of advertising is cheaper and provides access to global market at low cost. This is something which encourages people engaged in business to
promote their business through electronic medium.
5. Reduction in communication cost and technological infrastructure expense drive business towards e-business.

TECHNOLOGICAL FORCES THAT DRIVES ELECTRONIC COMMERCE

1. Technological advances have made business communication faster, easier, economical and efficient. It has enabled the business to switch over from the
local market to the global market.
2. The growing popularity of cyber cafes has created a big role in attracting internet population towards e-commerce.
3. Technological changes have given confidence to consumers to make electronic payments in settlement of financial obligations.

MARKET FORCES THAT DRIVES ELECTRONIC COMMERCE

1. Business organizations are able to reach international markets by using electronic medium for enhanced customer support and service.
2. E-commerce enables customers to make product comparison, place orders, track orders and make payments at ease. Due to convenience, customers prefer
to purchase their desired goods or services over internet in the online marketplace.
3. E-commerce also allows the customers to choose and order products according to their personal and unique specifications. It paves way for mass
customization.
4. The growing internet population stimulates business to switch over from an additional business to e-business.
5. Consumers often prefer shopping on the internet due to convenience and the changes in consumer behavior pulls consumer towards e-commerce.

E-Commerce Architecture:
To sell and buy the goods and services we have to develop a system that helps the seller to connect with customers or customers can connect with multiple
sellers for this, we developed different E-Commerce architectures.

E-Commerce Architecture types

1. Client-Server Architecture
2. Two-Tier Architecture
3. Three-Tier Architecture
1) Client-Server Architecture
➢ In this architecture, the client(browser) sends the requests to the server, and the server processes the request if a request is valid then it responds with the
requested data to the client.
➢ The client hosts the user interface(UI) while the server hosts the business logic and database.
2) Two-Tier Architecture
The two-tier architecture have consist of mainly two components:
• Client layer: It consists of the web browser, mobile application, or the other UI that user interacts with. This front-end client makes requests to the server.
• Server layer: It handles both the application logic and data storage/management. This single back-end server acts as a both the application server and the
database server.

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 1) Three-Tier Architecture:
The three-tier architecture is best architecture to develop a good E-commerce site. In three-tier architecture we separates database and server that eliminate the
problems we found in two-tier architecture. Three-tier architecture separates the presentation(UI), business logic and data storage layer into three distinct tiers.

• Client tier: Client tier is frontend layer consisting of components like a web browser, mobile application or other interfaces. This layer sends the users
request and displays the response of server.
• Middle tier: This application server layer handles all the business logic and computational tasks. It receives requests from the client, c ommunicates with
the database to get or update data, performs calculations and other application specific tasks, and passes results back to th e client.
• Data tier: This backend layer consists of the database servers that store and manage data. It can be a relational database like Oracle o r a NoSQL database
like MongoDB. The application server uses protocols like JDBC, ODBC to interact with this database tier.

Advantages:
1. Scalability
2. Availability
3. Performance
4. Security
5. Cost Efficient
6. Reliability
7. Flexibility
8. Maintenance

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E-Commerce - Chapter 3
11 March 2024

Suppose in a group of n people everyone wants to communicate secretly with (n-1) using symmetric key cryptography. The communication b/w any two people
should not be codable by other in a group. The number of key require in symmetric key are?
Sol: n(n-1)/2

Symmetric: nc2
Asymmetric: 2n

RSA Algorithm:
Q: In a RSA Cryptography system a particular A uses two prime number p=13, q=17 to generate its public and private key. If the p ublic key of A is 35 then
private key of A=?
Algo:
1. Choose two different large random prime numbers.
2. Calculate n = p * q
3. Calculate φ(n)=(p-1)*(q-1)
4. Choose 'e' such that 1<e<φ(n)
e is co-prime to φ(n), gcd(e,φ(n))=1
5. Calculate 'd' such that de=1 mod φ(n)
6. Public key 'e' and Private key 'd'

Sol:
1. p=13, q=17
2. n=p*q
n=13*17=221
3. φ(n)=(p-1)*(q-1)
φ(n)=12*16=192
4. 1<e<φ(n)= 1<e<192
gcd(35,192)=1
5. de=1mod φ(n)
de=1+k*φ(n)
φ(n)

1
At k=0 d= = not valid
19
At k=1 d= = not valid
1+ 192
At k=2 d= =
d=11

Q: p=11, q=17 e=7 Q: P=3 Q=5 and e=3 Q: p=3, q=11 and e=7
Sol: Sol: 1. p=3, q=11
1. n=11*7=77 1. n=3*5=15 2. n=3*11=33
2. φ(n)=10*16=160 2. φ(n)=2*4= 3. φ(n)=2*10=20
3. 1<e<160 3. 1<e<8 4. 1<e<20
gcd(7,160)=1 gcd(3,8)=1 gcd(7,20)=1
φ(n) 1+ φ(n) φ(n)
4. 4. = 5.
1+ 9 at k=1
160 = 1 + 20 21
d=3 d=
161 6. d=3

d=23

Difference b/w Private and Public Key:

Ans:
Private Key Public Key
It is faster than public key. It is slower than private key.
The same key algorithm are used to encrypt the message. In public key one of the two key is kept secret.
It is symmetrical because there is only one key that is called secret key. Public key is asymmetrical because there are two types of key private and public.
Private key algorithm are DES, AES, DDES, DDDES. Public key algorithm are RSA, DSA etc.

• Symmetric key vs Asymmetric key

• Secret key vs Private key
• DES vs AES

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