B. P.

PODDAR INSTITUTE OF MANAGEMENT & TECHNOLOGY DEPARTMENT OF COMPUTER

SCIENCE & ENGINEERING
ACADEMIC YEAR: 2023-24 EVEN SEMESTER

E-Commerce & ERP (OEC CS802A) Theory Assignment

1. Explain the different types of Business Transaction models. What is EDI & EDIFACT?
Ecommerce is a global phenomenon and as such support several models. The good thing about
ecommerce is that you could choose one or more models for your venture.

1. Business-to-Business (B2B)
If the nature of your products or services is geared towards meeting the needs of businesses,
setting up a B2B strategy is your best bet. Networking and reaching out is a bigger part of this
strategy. A big advertising budget is not of much help. The most important challenge you would
face is convincing established businesses that your products/services are a great fit for their
processes.
The advantage of this business model is that order sizes are usually large, and repeat orders are
very common, if you maintain the quality of your products and services. An example of a great
B2B model is Media Lounge.

2. Business-to-Consumer (B2C)
This is the model you should adopt if your products/services are targeted primarily towards
individuals. The potential customer finds your website and determines whether your product
could address their pain points.
After browsing the store, the customer may decide to place an order. An example of a successful
B2C business is Portugal Footwear.

3. Consumer-to-Consumer (C2C)
While B2B and B2B business concepts are familiar, Customer-to-Customer (C2C) is a concept
unique to ecommerce. This is mainly due to the sheer demand of the platforms such as Craigslist,
OLX, and eBay.
These platforms allow their users to trade, buy, sell, and rent products and services. In all
transactions, the platforms receives a small commission. This business model is complex and
requires careful planning to operate. Many platforms have failed, generally due to legal issues.
4. Consumer-to-Business (C2B)
Customer-to-Business (C2B) business model is another great concept that is popular mainly due
to platforms that cater to freelancers. In C2B, freelance workers work on tasks provided by
clients. Most of these clients are commercial entities and freelancers are often individuals. In
simpler terms, consider C2B is a sole proprietorship serving larger businesses.
Reverse auction websites, freelance marketplaces, affiliate marketing all form part of this
business model. Again, this model requires planning due to the legal complexities involved.

5. Business to Government (B2G)

Business to Government (B2G) is an ecommerce business model where a business markets its
products to government agencies. If you want to choose this ecommerce business model, you will
have to bid on government contracts. Governments usually put up requests for proposals and
ecommerce businesses then have to bid on government projects. In most cases, a government
agency would not come to place an order on your ecommerce website. However, some local
government agencies are exceptions to the rule, depending on their needs.

6. Business to Business to Consumer (B2B2C)

When a business sells products to another business, and then that business sells to the consumers
online, this is what is defined as B2B2C ecommerce.
There are three parties involved in this type of ecommerce business model. For example, if you
choose to go with it, you will have to partner with another business, and only then can you sell its
products and offer the partner a commission for each sale.
Ecommerce store owners choose this business model mainly for new customer acquisition. This
happens because even though customers are already familiar with the partner’s products, they
can’t order from them online, due to obstacles such as geographical location, hefty shipping
costs, and others.

Electronic Data Interchange (EDI)

• Electronic Data Interchange
(EDI) is the computer-to-
computer exchange of business
documents in a standard
electronic format between
business partners.
• Companies use EDI systems to exchange business information automatically by computer as
paperless transactions.
• EDI (Electronic Data Interchange) is a process for transferring information between systems
using standardized electronic formats to enable computers to process the information while
minimizing or completely eliminating the need for human intervention.
• Many business documents can be exchanges using EDI like:- purchase order, Invoices, advance
ship notice, customer documents, inventory documents, payment documents, etc.
• EDI is used for B2B transactions that occurs on a regular basis to a pre-determined format.
With EDI, paper documents are eliminated and human intervention is minimized. In the same
transaction, the purchaser simply inputs the procurement details into his computer system, which
sends it straight to the vendor's own systems. The invoice is automatically created in the vendor's
computer system and sends it straight back to the purchaser's system for processing.

Electronic Data Interchange for Administration, Commerce and Transport

Electronic Data Interchange for
Administration, Commerce and Transport
(EDIFACT) is the international standard for
electronic data interchange (EDI), which was
developed under the auspices of the United
Nations. The standard was approved as the
ISO 9735 standard by the International
Organization for Standardization (ISO) in
1987. The EDIFACT standard provides rules
on how to structure data and standardize
messages for multi-industry and multi-
country exchange.
EDIFACT is also known as United
Nations/Electronic Data Interchange For
Administration, Commerce and Transport (UN/EDIFACT).
The EDIFACT standard defines the protocols and data sets to be used for electronic documents
and data being used in EDI. These are composed of internationally agreed-upon standards,
guidelines and directories meant for electronic interchange of structured data, particularly those
related to the trade of goods and services between computerized information systems that are
independent of each other.
 2. Describe how RSA and DES algorithms can be used for EDI security.
means of securing information. As more and more information is stored on computers or communicated via
computers, the need to insure that this information is invulnerable to snooping and/or tampering becomes more
relevant. With the fast progression of digital data exchange in electronic way, Information Security is becoming
much more important in data storage and transmission. Information Confidentiality has a prominent
significance in the study of ethics, law and most recently in Information Systems. With the evolution of human
intelligence, the art of cryptography has become more complex in order to make information more secure.
Arrays of Encryption systems are being deployed in the world of Information Systems by various organizations.
In this paper, a survey of various Encryption.

1. Rivest-Shamir-Adleman (RSA) algorithm :

RSA stands for Rivest-Shamir-Adleman. It is a cryptosystem used for secure data transmission. In RSA
algorithm, encryption key is public but decryption key is private. This algorithm is based on mathematical fact
that factoring the product of two large prime numbers is not easy. It was developed by Ron Rivest, Adi
Shamir and Leonard Adleman in 1977.

2. Digital Signature Algorithm (DSA) :

DSA stand for Digital Signature Algorithm. It is used for digital signature and its verification. It is based on
mathematical concept of modular exponentiation and discrete logarithm. It was developed by National
Institute of Standards and Technology (NIST) in 1991.
It involves four operations:
1. Key Generation
2. Key Distribution
3. Signing
4. Signature Verification
 3. Discuss the potential benefits of EDI. Differentiate between Digital Signature and Digital
Certificate?

The benefits of integrated EDI is that it removes the need to

manually retype data which eliminates costly data entry errors.
This saves considerable time and money and improves your
customers’ experience. An integrated EDI solution not only
increases efficiency through automation, it also saves you
money on postage, paper, physical document storage and the
time it takes to rekey data and handle paper documents.

The advantages and benefits of Electronic Data Interchange

• Improved operational efficiency: Automating the flow of

messages with integrated EDI improves the speed and
efficiency of your operations by eliminating the need to
manually rekey data in multiple systems.
• Fewer errors: By removing manual, paper based processes the occurrence of human errors is dramatically
reduced or even eliminated.
• Increased accuracy: Automated message validation ensures that errors are flagged and rectified before they
impact your trading partners and data integrity in your internal systems is maintained.
• Increased return on investment (ROI): Automation through integrated EDI enables you to maximise the
benefits of EDI and move beyond simply complying with your customers’ EDI requirements.
• Enhanced visibility: EDI provides full transparency of the ordering and invoicing process for you and your
trading partners. This end-to-end visibility enables more informed decisions to be made and ultimately improves
the service delivered to consumers.
• Reduced inventory cost: Increased visibility within the supply chain eliminates unknowns and can therefore
enable you to reduce the levels of inventory you need to hold.

Digital certificate vs digital signature

Digital signature is used to verify authenticity, integrity, non-repudiation ,i.e. it is assuring that the
message is sent by the known user and not modified, while digital certificate is used to verify the
identity of the user, maybe sender or receiver. Thus, digital signature and certificate are different kind
of things but both are used for security. Most websites use digital certificate to enhance trust of their
users

Feature Digital Signature Digital Certificate

Basics / Definition
Process / Steps
Security Services
Standard
A digital signature secures the
integrity of a digital document
in a similar way as a fingerprint
or attachment.
Hashed value of original data is
encrypted using sender’s
private key to generate the
digital signature.
Authenticity of
Sender, integrity of the
document and non-
repudiation.
It follows Digital Signature
Standard (DSS).
Digital certificate is a file that
ensures holder’s identity and
provides security.
It is generated by CA
(Certifying Authority) that
involves four steps: Key
Generation, Registration,
Verification, Creation.
It provides security
and authenticity of certificate
holder.
It follows X.509 Standard
Format
 4. Given prime nos. P = 17, Q = 29. Find out N, E and D in RSA encryption.

Compute the value of N and

It is given as,

N = P x Q and Ф = (P-1) × (Q-1)

Here in the example,

N = 17 x 29 = 493

Ф = (17-1) × (29-1) = 16 × 28 = 448

Find the value of E (public key)

Choose E, such that e should be co-prime. Co-prime means it should not multiply by factors of and also
not divide by Ф

Let's choose E = 3.

Gcd(E, Φ (N)) =1

Gcd(E, 448) =1

Gcd(3,448) =1

Compute the value of D (private key)

The condition is given as,

(E * D) mod Ф = 1

(3 x D) mod 448 = 1

Because 897mod448 = 1

So, D= 897/3=299

So, in the RSA encryption with P = 17 and Q = 29, the values are:

• N = 493

• E=3

• D = 299
 5. Explain the E-Commerce Trade cycle for Electronic markets, Electronic Data Interchange and
Internet Commerce
E-Commerce Trade Cycle
E-Commerce can be applied to all, or different phases of the trade cycle.The trade cycle varies depending
on:-
Ø The nature of the organization (or individuals) involved.
Ø The nature and type of goods or services being exchanged.
Ø The frequency of trade between the partners to the exchange process.
The trade cycle has to support:-
• Finding goods or services appropriate to the requirement and agreeing the terms of trade often referred to as
search and negotiation.
• Placing the order, taking delivery and making payment i.e., execution & settlement of transaction.
• After sales activity such as warrantee, service etc. There are numerous categories of trade cycles
depending on the factors outlined above and, for many transactions, further complicated by the complexities
of international trade.
Three generic trade cycles can be identified:-
1. Regular, repeat transactions between commercial trading partners (Repeat Trade Cycle).
2. Irregular Transactions between commercial trading partners where execution and settlement are
separated (Credit Transactions)
3. Irregular transactions in once-off trading relationships where execution and settlement are typically
combined (Cash Transactions)

Electronic Markets:-
v It increases the efficiency of
the market.
v It reduces the search cost for
the buyer and makes it more
likely that buyer will continue
the search until the best buy is
found.
v It exists in financial markets & they are also used in airline booking system.
v It is irregular transaction trade.

Electronic Data
Interchange:-
v It is used for regular repeat
transactions.
v It takes quite a lot of work
to set up systems.
v Mature use of EDI allows
for a change in the nature of
the product or service.
e.g. Applications are
sending test results from the
pathology laboratory to the hospital or dispatching exam results from exam boards to school.

Internet Commerce:-
The first stage
• Advertising
appropriate goods and
services.
• Internet sites offer
only information & any
further steps down the
trade cycle are
conducted on the
telephone.
The Second stage
• An increasing no. of sites offer facilities to execute & settle the transaction.
• Delivery may be electronic or by home delivery depending on the goods and services.
The final stage
• After-sales service.
• On-line support & On-Line services.