E-Commerce

E-Commerce

In its simplest form ecommerce is the buying and selling of

products and services by businesses or consumers over the
World Wide Web.
People use the term "ecommerce" or "online shopping" to
describe the process of searching for and selecting products in
online catalogues and then "checking out" using a credit card
and encrypted payment processing
Definition

E-commerce describes the process of buying

and selling of products, services and
information via computer networks including
internet.
E-commerce is the means to complete online
transaction and integrate the supply chain
into the transaction management process
such as receiving orders, making payments
and tracking down the deliveries or order.
Limitation of Traditional
Commerce
Paper work
Delay in transaction
Addition cost of paper, typing, documents storage and handling.
Time consuming
Delay in payment
Difficult to reach to remote customer
Distributor, agents, wholesaler.
 E-commerce Benefits
Reduced costs by reducing labour,

Reduced paper work,

Reduced errors in keying in data,

Reduced time. Shorter lead times for payment

 E-commerce Benefits

Faster delivery of product .

New Markets. The Internet has the potential to expand your business into
wider geographical locations
Role of E-Commerce

E-Commerce is used everywhere

On-line education
Online banking
Electronic fund transfer
Online auction
Travel reservation on internet
Online retailing(homeshop18, flip cart)
Three-tier Technical Model

Server side

Client side Service system Backend system

Architecture of Web-based E-
Commerce System
Service system Backend system

Web Server Application Server

Internet Database

Intranet
Firewall
(Secure)

Client side Server side

 Features

E-Commerce provides following features

Non-Cash Payment: E-Commerce enables use of credit cards,
debit cards, smart cards, electronic fund transfer via bank's
website and other modes of electronics payment.
24x7 Service availability: E-commerce automates business of
enterprises and services provided by them to customers are
available anytime, anywhere. Here 24x7 refers to 24 hours of
each seven days of a week.
 Advertising / Marketing: E-commerce increases the reach of
advertising of products and services of businesses. It helps in
better marketing management of products / services.
Improved Sales: Using E-Commerce, orders for the products
can be generated any time, any where without any human
intervention. By this way, dependencies to buy a product reduce
at large and sales increases.
Support: E-Commerce provides various ways to provide pre
sales and post sales assistance to provide better services to
customers.
.
 Inventory Management: Using E-Commerce, inventory
management of products becomes automated. Reports get
generated instantly when required. Product inventory
management becomes very efficient and easy to maintain.
Communication improvement: E-Commerce provides ways for
faster, efficient, reliable communication with customers and
partners
Advantages:E-Commerce Advantages

E-Commerce advantages can be broadly

classified in three major categories:

Advantages to Organizations

Advantages to Consumers

Advantages to Society
Advantages to Organizations

Using E-Commerce, organization can expand their market to

national and international markets with minimum capital
investment. An organization can easily locate more customers,
best suppliers and suitable business partners across the globe.
E-Commerce helps organization to reduce the cost to create
process, distribute, retrieve and manage the paper based
information by digitizing the information.
E-commerce improves the brand image of the company.
Advantages to Organizations

E-commerce helps organization to provide better customer

services.
E-Commerce helps to simplify the business processes and make
them faster and efficient.
E-Commerce reduces paper work a lot.
E-Commerce increased the productivity of the organization. It
supports "pull" type supply management. In "pull" type supply
management, a business process starts when a request comes
from a customer and it uses just-in-time manufacturing way.
 Advantages to Customers

24x7 support. Customer can do transactions for the product or

enquiry about any product/services provided by a company any
time, any where from any location. Here 24x7 refers to 24 hours
of each seven days of a week.
E-Commerce application provides user more options and quicker
delivery of products.
E-Commerce application provides user more options to compare
and select the cheaper and better option.
 A customer can put review comments about a product and can
see what others are buying or see the review comments of other
customers before making a final buy.
E-Commerce provides option of virtual auctions.
Readily available information. A customer can see the relevant
detailed information within seconds rather than waiting for days
or weeks.
E-Commerce increases competition among the organizations and
as result organizations provides substantial discounts to
customers.
Advantages to Society

Customers need not to travel to shop a product thus less traffic

on road and low air pollution.
E-Commerce helps reducing cost of products so less affluent
people can also afford the products.
E-Commerce has enabled access to services and products to
rural areas as well which are otherwise not available to them.
E-Commerce helps government to deliver public services like
health care, education, social services at reduced cost and in
improved way.
E-Commerce Disadvantages

E-Commerce disadvantages can be broadly classified in two

major categories:
Technical disadvantages
Non-Technical disadvantages
Technical Disadvantages

There can be lack of system security, reliability or standards

owing to poor implementation of e-Commerce.
Software development industry is still evolving and keeps
changing rapidly.
In many countries, network bandwidth might cause an issue as
there is insufficient telecommunication bandwidth available.
Special types of web server or other software might be required
by the vendor setting the e-commerce environment apart from
network servers.
 Sometimes, it becomes difficult to integrate E-Commerce
software or website with the existing application or databases.
There could be software/hardware compatibility issue as some E-
Commerce software may be incompatible with some operating
system or any other component.
Non-Technical Disadvantages

Initial cost: The cost of creating / building E-Commerce

application in-house may be very high. There could be delay in
launching the E-Commerce application due to mistakes, lack of
experience.
User resistance: User may not trust the site being unknown
faceless seller. Such mistrust makes it difficult to make user
switch from physical stores to online/virtual stores.
 Security/ Privacy: Difficult to ensure security or privacy on online
transactions.
Lack of touch or feel of products during online shopping.
E-Commerce applications are still evolving and changing rapidly.
Internet access is still not cheaper and is inconvenient to use for
many potential customers like one living in remote villages.
Types of Electronic commerce

Business - to - Business (B2B)

Business - to - Consumer (B2C)

Consumer - to - Consumer (C2C)

Consumer - to - Business (C2B)

B2B
B2B

Website following B2B business model sells its product to an

intermediate buyer who then sells the product to the final
customer. As an example, a wholesaler places an order from a
company's website and after receiving the consignment, sells the
end product to final customer who comes to buy the product at
wholesaler's retail outlet.
Business - to - Consumer(B2C)
Business - to - Consumer(B2C)

Website following B2C business model sells its product directly to

a customer. A customer can view products shown on the website
of business organization. The customer can choose a product and
order the same. Website will send a notification to the business
organization via email and organization will dispatch the
product/goods to the customer.
Consumer - to - Consumer (C2C)
Consumer - to - Consumer (C2C)

Website following C2C business model helps consumer to sell

their assets like residential property, cars, motorcycles etc. or
rent a room by publishing their information on the website.
Website may or may not charge the consumer for its services.
Another consumer may opt to buy the product of the first
customer by viewing the post/advertisement on the website.
Consumer - to - Business (C2B)
Consumer - to - Business (C2B)

In this model, a consumer approaches website showing

multiple business organizations for a particular service.
Consumer places an estimate of amount he/she wants to spend
for a particular service. For example, comparison of interest rates
of personal loan/ car loan provided by various banks via website.
Business organization who fulfills the consumer's requirement
within specified budget approaches the customer and provides
its services.
Elements of E-Commerce

Database
Website(with all details)
Cookies
SSL(secure sockets layer)
Secure Certificate
Electronic payment system.
Merchant Account
Payment Gateway
Example of Electronic Commerce

B2C: www.amazon.com
C2C: www.eBay.com
B2B: www.tpn.com
C2B: www.priceline.com
Measuring Benefits

Tangible benefits of electronic commerce initiatives include:

Increased sales
Reduced costs
Intangible benefits of electronic commerce initiatives include:
Increased customer satisfaction
 Catalog

A catalog represents a collection of products

that you group into categories.
You can then use this information to create,
within a Commerce Server-enabled Web site,
Web pages that let your customers browse your
collection of products.
The categories in your catalogs can have sub-
categories, and products may appear in
multiple categories.
 Catalog

You can define a product with variations, for example, the same
shirt can have different colors. These are called a product
variants.
You can also create catalogs that display on your Web site in
different languages and different currencies.
You can link two products together, so that when one is viewed,
the other appears somewhere on your Web site page as an
alternate suggestion..
 Catalog

Catalogs contain hierarchies and relationships that you use to

organize the products in the catalog
It is used to make it easier for customers to navigate to the
products that they want to buy.
You can create category hierarchies and relationships among
categories and products that are in the same catalog or in
different catalogs.

 Catalog

For example, if you have a large catalog, you can create a parent
category that includes several other categories, known as child
categories.
When customers navigate to the parent category, the child
categories appear; enabling customers to navigate quickly to the
category that contains the products they want.
For example, you could define an "alternate" relationship so that
when one product is viewed, another appears somewhere on
your Web site page as an alternate suggestion.
 Merchant account

A merchant account is a type of bank account that allows

businesses to accept payments by payment cards, typically
debit or credit cards. A merchant account is established
under an agreement between an acceptor and a
merchant acquiring bank for the settlement of payment card
transactions. In some cases a payment processor,
independent sales organization (ISO), or member service
provider (MSP) is also a party to the merchant agreement.
Whether a merchant enters into a merchant agreement
directly with an acquiring bank or through an aggregator,
the agreement contractually binds the merchant to obey the
operating regulations established by the card associations .
 What is an Internet merchant account?
It's an account with a bank that allows you to process credit
cards online.
DEFINITION of 'Merchant Account'
A type of business bank account that allows a business to accept
and process debit and credit card transactions. Merchant
accounts are necessary accounts for many businesses, and are
essential for online businesses. There are different types of
merchant accounts to choose from for businesses. For instance,
some merchant accounts are designed specifically to handle
online sales.
 How it works

Your Online Shop

Payment Gateway
InternetMerchant Account
 How it works

Your customer inputs credit card information in Your Online Shop.

The Payment Gateway encrypts data and sends it securely to
your Internet Merchant Account.
The transaction is reviewed for authorisation by the customers
issuing bank.
The result is encrypted and sent back through the gateway.
You get the results and decide whether or not to fulfil the order.
Supply chain management
(SCM)
Supply chain management is the integration of the
activities that procure(buy) materials and services,
transform them into intermediate goods and final
products, and deliver them through a distribution system.
But in general, Supplychain management means the
management of upstream and downstream relationships with
suppliers and customers to deliversuperior customer value at
less cost to the supply chain as a whole
What is Supply Chain Management?

Every product that reaches an end user represents the cumulative effort of
multiple organizations. These organizations are referred to collectively as
the supply chain.
The entire chain of activities that ultimately delivered products to the final
customer. The result was disjointed and often ineffective supply chains.
Supply chain management, then, is the active management of
supply chain activities to maximize customer value and achieve a
sustainable competitive advantage. Supply chain activities cover
everything from product development, sourcing, production, and logistics,
as well as the information systems needed to coordinate these activities.
They are the most visible piece of the supply chain. But just as important
are information flows. Information flows allow the various supply chain
partners to coordinate their long-term plans, and to control the day-to-day
flow of goods and material up and down the supply chain.
 What is Supply Chain Management?
If you have ever checked out a newspaper advertisement, driven to the
store, and purchased your favorite product at a ridiculously low price,
then you can thank supply chain managers for a job well done! Supply
chain management (SCM) is all the activities that take place to get a
product in your hands from the time of raw materials extraction to the
minute you pull out your credit card and take the final product home.
SCM focuses on planning and forecasting, purchasing, product
assembly, moving, storing, and keeping track of a product as it
flows toward you and other consumers.
Supply chains include all of the companies that participate in the design,
assembly, and delivery of products for buyers like you. Retailers,
manufacturers, transportation companies, and distributors are some of
the key players.
Enterprise resource planning
(ERP)
Enterprise resource planning (ERP) is a business management
softwareusually a suite of integrated applicationsthat a company can
use to collect, store, manage and interpret data from many business
activities, including:-
Product planning, cost and development
Manufacturing or service delivery
Marketing and sales
Inventory management
Shipping and payment
ERP provides an integrated view of core business processes, often in
real-time, using common databases maintained by a database
management system
 ERP software is considered an enterprise application as it is
designed to be used by larger businesses and often requires
dedicated teams to customize and analyze the data and to
handle upgrades and deployment.
So Generally there are lot of ERP package vendors in the
market like,SAP,Oracle,BANN,JD Edwards,SIEBEl etc.Each
vendor is specialized in one or many resources.SAP comes
under ERP Package which gives business solutions to a
business setup in all areas like Finance,Sales,Costing and
materials etc.
 SAP

SAP stands for Systems Applications and Products in Data

Processing.
SAP is an Enterprise Resource Planning (ERP) system by SAP AG,
company based out of Walldorf in Germany. AG is derived from
the German word AKtiengesellschaft. According to German
Language SAP Stands for Systeme, Anwendungen und Produkte
in Der Datenverarbeitung.SAP software suite that is being
implemented as part of re-engineering and Provides end to end
solutions for financial, logistics, distribution, inventories. Present
scenario large number of companies are using sap software for
their day to day business activities.
 SAP

SAP is beautifully and neatly integrated ERP software. SAP is a

leader when it comes to easy integration among all the
departments. It provides industry specific solutions for different
industries other then its basic SAP modules. SAP suit contains
SAP FI, CO, SD, MM, PP, HR, PA and other modules
 Procurement
(obtain)
The act of obtaining or buying goods and services. The process
includes preparation and processing of a demand as well as the
end receipt and approval of payment.
 EDI

EDI stands for Electronic Data Exchange.

Example flip cart receipt send to customer when product is sent.
EDI stands for Electronic Data Exchange. EDI is an electronic way
of transferring business documents in an organization internally
between its various departments or externally with suppliers,
customers or any subsidiaries etc. In EDI, paper documents are
replaced with electronic documents like word documents,
spreadsheets etc.
 EDI Documents

Following are few important documents used in EDI:

Invoices
Purchase orders
Shipping Requests
Acknowledgement
Business Correspondence letters
Financial information letters
 EFT

Electronic funds transfer (EFT) is the electronic exchange,

transfer of money from one account to another, either within a
single financial institution or across multiple institutions, through
computer-based systems.
Cardholder-initiated transactions, using a payment card such as a
credit or debit card
Question: What does "EFT (electronic funds transfer)" mean?
Answer: The transfer of money from one account to another by
computer.
Back-end EC solution

All ERP vendor Like SAP oracle have also announced Web Ec
strategies and products like.
Peachtree software: complete package for web front and
managing order.
SBT corp Web trader is another c2b web ec package work in LAN
Great plain software:
a: Dynamic merchant for c2b, dynamic order for b2b

A number of new startup vendor are starting to provide front end

ec
Media convergence

(IT + Telecommunication + Media Technology) = Media Convergence

Mobile= telephone + high speed data + broadcast services.
You can watch television on Mobile and computer.
Now a days analogue and digital work together or analogue
becoming digital.

the fact that newspapers, television, radio, and the internet are
becoming less separate as technology develops: Media convergence
means that we can now watch a newspaper's video report on our
cellphone via the internet.
Four types of convergence:

1:-Network convergence: different types of networks becoming

capable of carrying multiple kinds of communication services.
2:-Terminal convergence:- making it possible to watch TV on mobile.
3:-Market convergence:- different kind of market like IT, Tele and
media working together.
Media convergence is the merging of mass communication outlets
print, television, radio, the Internet along with portable and
interactive technologies through various digital media platforms
 59

Intranets
Private internal networks
Extranet
Used when companies want to collaborate with suppliers, partners,
or customers
Internet2
Experimental network built by a consortium of research universities
and businesses
 61
Electronic Data Interchange
EDI is the computer-to-computer transfer of business
information between two businesses
EDI-compatible firms are firms that exchange data in
specific standard formats
Business information exchanged is often transaction data
Web Portals 62

Web directories and search engines were some of the first portals
Portals or Web portals
Yahoo!, AOL, Google, etc. are general purpose portals that are launch
points for many people into the web
Numerous portals are specialized for specific interest groups
Auction Overview
63

In an auction, a seller offers an item for sale, but

does not establish a price
Stakeholders:
Bidders (i.e., potential buyers)
Sellers
Intermediaries
Shill bidders place bids on behalf of the seller to
artificially inflate the price of an item
English Auctions
64
In English auctions (open auctions), bidders publicly
announce their successive higher bids until no
higher bid is forthcoming
Minimum bid: The price at which an auction begins
Reserve price: Minimum acceptable price

Yankee auctions
English auctions that offer multiple units of an item for
sale
Virtual Communities 65
A virtual community is a gathering place for people and
businesses that does not have a physical existence
Usenet newsgroups
Chat rooms
Web sites
Virtual Worlds and Gaming Communities
Summary
66

Companies are now using the Web to operate

auction sites, create virtual communities, and
serve as Web portals
Consumer online auction business is dominated
by eBay
B2B auctions
Give companies a new and efficient way to dispose
of excess inventory
 67

Two-Tier Client/Server
Architecture
Two-tier client/server architecture has one client and one
server
 68

Two-Tier Client/Server
Architecture
Request message: Message that a Web client sends
to request a file or files from a Web server
Typical request message contains:
Request line
Contains a command, the name of the target resource, and the protocol
name and version number
Request headers
Can contain information about types of files that the client will accept in
response to a request
Entity body
Used to pass bulk information to the server
 69

Three-Tier and N-Tier Client/Server

Architectures
Three-tier architecture
Extends two-tier architecture to allow additional processing
(e.g., collection of data from a database) before reponses to
requests are made
N-tier architectures
Higher-order architectures
Third tier includes software applications that interactively
supply and update information to and from the web server
70
 72

Web Server Software

The most popular Web server programs are:
Apache HTTP Server
Microsoft Internet Information Server (IIS)
Sun Java System Web Server (JSWS)
Netcraft
A networking consulting company in Bath, England
Accumulates popularity rankings
 73

Apache HTTP Server

Apache is the results of an ongoing group software
development effort, first developed by Rob McCool at the
University of Illinois in 1994 at the NCSA
Apache has dominated the Web since 1996 because it is free
(open source) and performs efficiently
 74

Microsoft Internet Information

Server
Comes bundled with current versions of Microsoft Windows
Server operating systems
Used on many corporate intranets
Supports the use of:
ASP
ActiveX Data Objects
SQL database queries
 76

Electronic Mail (E-Mail)

We all know the benefits of email
Email drawbacks include:
Time spent by business people responding to e-mail
Computer viruses
Programs that attach to other programs
Can cause damage when the host program is activated

Spam
 77

Electronic Mail (E-Mail)

We all know the benefits of email
Email drawbacks include:
Time spent by business people responding to e-mail
Computer viruses
Programs that attach to other programs
Can cause damage when the host program is activated

Spam
 78

Spam
Spam is unsolicited or commercial e-mail
During one 24-hour period in 2005 researchers estimated that
106 billion spam e-mail messages were sent
 79

Web Site and Internet Utility Programs

Finger
Runs on UNIX operating systems
Allows users to obtain information about other network users
Command yields a list of users who are logged on to a network
Ping (Packet Internet Groper)
Tests connectivity between two computers connected to the
Internet
 80

Telnet and FTP Utilities

Telnet
Program that allows users to log on to a computer connected to
the Internet
Telnet protocol
Set of rules used by Telnet programs
File Transfer Protocol (FTP)
Defines formats used to transfer files between TCP/IP-connected
computers
 81
Data Analysis Software
Web servers can capture:
Data about who is visiting a Web site
How long the visitors Web browser viewed the site
Date and time of each visit
Which pages a visitor viewed
Data captured by Web servers are stored in a log file
Secure Electronic
Transaction(SET)
An application-layer security mechanism,
consisting of a set of protocols.
Protect credit card transaction on the
Internet.
Companies involved: MasterCard, Visa, IBM,
Microsoft, Netscape, RSA, CyberCash, NetBill
Not an ordinary payment system.
It has a complex technical specification
Secure Electronic Transaction (SET): Protocol

Confidentiality: All messages are encrypted

Trust: All parties must have digital certificates
Privacy: information made available only when and where
necessary
Developed by Visa and MasterCard
Designed to protect credit card transactions
 Website vs Webportal

A Webportal is also a type of website but it differs in content and

services from a typical website that provides only specialized
information.
A website is a general term for any collection of pages on the
same domain or sub-domain.
A web portal is generally used for a 'gateway' site or set of pages -
ie, they are principally links signposting other sites.
A web portal is the entrance (gate) to the Web. One can enter the
web from many different portals (gates) and either dive into the
portal inner web or move to other portals in the web. Yahoo is an
good example for web portal.
It's also important to note that a "Web Portal" is also a website.
 PayPal

PayPal is an electronic payment system which can transfer

money between its accounts.
In order to use PayPal, one has to obtain a PayPal account, which
is associated either with the customer's credit card or with their
regular bank account.
The validity of a checking account is checked as follows: the
customer gives PayPal their account number, PayPal makes two
small-amount (less than $1) deposits to the account.
If the customer is able to tell PayPal the value of these deposits,
then the customer is assumed to be a legitimate user of the
account.
 In order for the person to retrieve the money, they must have a
PayPal account.
To avoid fraud, PayPal sends an e-mail message to both the
initiator and the recipient of the transaction.
PayPal is used to settle online auctions, such as eBay auctions.
The ease of use and the fact that no credit card is required to
use it makes PayPal increasingly popular.
 With PayPal, you can send money to anyone with an email
address.

Heres how to send money:

Log in to your PayPal account.
Click Send Money.
Enter the recipients email address and the amount you want to
send.
Select Purchase or Personal, then choose the reason for the
payment.
Click Continue.
 Review the amount, the payment method, and shipping address.

Add a message (if you want to), then click Send Money.

Paypal will send the recipient an email to let them know that you sent them money. If they
dont have a PayPal account, we explain how to sign up for one. PayPal members must
confirm their email address before the money will be credited to their PayPal account.
When you send money, Paypal use your PayPal balance first. If you dont have enough
money in your PayPal balance, paypal will use the payment method you select.
PayPal acts as the middleman holder of money.
How will the person who paid know that I got theirpayment?
A notification of payment will go to the email address
 PayPal Requirements

You need no special technology nor a business license to send/receive money

through Paypal. The only requirements are:

a valid email address.

a valid credit card or bank account
When you open a PayPal account, you register an email address with PayPal
that you will use for all transactions through PayPal,
Select a password, and provide your bank account information and credit
card information to be used as "funding sources" for PayPal transactions.
PayPal will then make a "test" withdrawal of one cent from your bank
account to complete/confirm the link.
 How does PayPal make
money?
As a middleman financial broker, PayPal makes its profit by
charging a percentage of the money it transfers for you.

PayPal is Free for Buyers and for Sending Money to Someone Else.
Once a buyer sets up a Paypal account, then it costs nothing to send money
to a vendor. The funds are withdrawn from the user's credit card or bank
account, or both. PayPal does not charge buyers to send money.

PayPal Commonly Charges Money from Receivers (Sellers) :PayPal
will only charge you to receive funds(money is received by the seller so
paypal only charge from seller not the buyer but for using paypal buyer
If you are sending money to a friend or family member (someone who is not
a registered seller), you can opt to pay for the PayPal surcharge yourself.
 Branding

The process involved in creating a unique name and image

for a product in the consumers' mind, mainly through
advertising campaigns with a consistent theme. Branding
aims to establish a significant and differentiated presence in the
market that attracts and retains loyal customers.
A personal brand is how you market yourself to others,
whereas an eBrand is a digital representation of yourself
online.
Brandis the name, term, design, symbol, or any other feature
that identifies one sellers good or service as distinct from those
of other sellers.[
 E-Branding

Your online business website may prove that youre

knowledgeable on the latest technology but on the reverse side,
it can damage your business image if your site does not provide
a good user experience and is difficult to load or navigate around.

Few things to consider for your online business when determining

your e-Branding are
 E-Branding

How quickly your customers can load your website,

How easy it is to navigate around and understand your website,
How easily they can purchase or contact you,
How effective are your e-letters,
where else they found your website links, etc.
The general rule of thumb is that you have less than 5 seconds to
capture the attention of a visitor
 Web Hosting

'Hosting' is a service provided by a

vendor which offers a physical location
for the storage of web pages and files.
Think of a Web Hosting Company as a
type of landlord, they rent physical
space on their servers allowing
webpages to be viewed on the Internet.
 What is a Web Server?

Generally used in reference to

the computer hardware that
provides World Wide Web
services on the Internet, a Web
server includes the hardware,
operating system, server
software, TCP/IP protocols and
 Hosting server

Aserver dedicated to hosting a service or

services for users. Hosting servers are
most often used for hosting Web sites but
can also be used for hosting files, images,
games and similar content. Hosting
servers can be shared among many clients
(shared hosting servers) or dedicated to a
single client (dedicated servers).
 Types of Hosting account or
Hosting service
Free Web hosting

Shared Hosting

Dedicated server

Clustered hosting

Colocation web hosting service

Free Web hosting

Free services work best for private

Web pages, small-audience blogs
and static websites because you
have limited control. Your choices
of monetization strategies will be
restricted because free services will
run their own ads to earn money.
 Shared Hosting

These services share dedicated server

resources with multiple users. Sharing a
server results in some security risks,
smaller processing capacity and fewer
software- and database-support options.
Prices are more affordable for smaller
needs, and you do get better administrative
control and more monetization options.
 Dedicated server

A dedicated server provides robust features, full

administrative access and unlimited use of
software and applications, but you are
responsible for your own security and
maintenance. This is the best option if you plan
on generating lots of traffic or use special
software. Basically, dedicated server hosting is
like running a branch office where you are
responsible for security and maintenance issues.
 Clustered hosting

Clustered hosting offers redundant servers

to take over when one server goes off-line.
This solution can be expensive, but it might
be the best choice for high-traffic websites
that target global customers.
Highly scalable, the option provides high
availability for multiple website applications.
.
You can easily shut down one server for
maintenance while assigning its load to
other servers.
A cluster can be assemble from a bunch
of dedicated servers, cloud servers or
even an hybrid of both. This is a very
robust solution
 Colocation hosting

Colocation allows you to place your server machine in someone

else's rack and share their bandwidth as your own.
It generally Six
costs more
Stages than standard
Involved Web ahosting,
in Developing but
Strategic E- less than
a comparable Marketing
amountPlan
of bandwidth into your place of business.
Once you have Reada machine
more : set up, you take it physically to the
location of the colocation provider and install it in their rack or
http://www.ehow.com/way_5247269_six-developing-
you rent a server machine from the colocation provider.
strategic-e_marketing-plan.html
That company then provides an IP, bandwidth, and power to
your server. Once it's up and running, you access it much like you
would access a Web site on a hosting provider. The difference
being that you own the hardware.
Six Stages Involved in Developing a Strategic E-Marketing Plan

Develop a Game Plan

Prioritize
Expand
Cost
Diversify
Make Changes
 Develop a Game Plan

Gatherthe managers from your company and determine

what each department expects and needs from the
Internet.
Thesales department needs a way for customers to order
product and for people looking for information to be able
to easily fill out an online form.
Marketingneeds the content on a Web site to maximize
search-engine results
whileengineering needs customers to be able to access
drivers updates to keep their products running properly.
Take detailed notes of exactly what each group needs.
 Prioritize

Determine which tasks are more important and have the largest
impact on the ability of the company to do business,
and then organize the e-marketing plan to accommodate these
priorities. Y
our priority list will depend on what you hope to accomplish with
your strategic plan.
Expand and cost

Once the priorities have been set,

determine what resources on the Internet (beyond the company
Web site) can be used to execute the e-marketing plan.
Look for complimentary businesses you are currently not doing
business with and try to establish Internet links with them
 Cost

Once you have the focus of your e-marketing plan figured out it's
time to determine the cost.
Not only will you need to figure in the cost of online advertising
and Web hosting, but there will also be the cost of the time spent
by your employees in developing and executing the plan.
After you have developed your cost estimates compare them to
your budget.
Diversify

Part of your e-marketing strategy should be to tie in your Internet

activity with your activity in other mediums.
Include your Web address in your print advertising and
encourage customers to visit your Web site.
Your e-marketing plan should be an interlocked component of
your overall marketing scheme.
 Make Changes

The Internet and all forms of electronic media change frequently.

Once you have a plan in place and begin to execute it, monitor
its progress regularly.
Keep an eye out for changes in technology or new marketing
avenues on the Internet, and be ready to adapt your e-marketing
plan to incorporate new developments.
 It is important to understand the differences between an
information securitypolicy, procedure.
Policies define the laws for an organization.
Procedures and standards describe how to implement policies.
In business, a security policy is a document that states in
writing how a company plans to protect the company's
physical and information technology (IT) assets
 A security policy is often considered to be a "living document",
meaning that the document is never finished,
but is continuously updated as technology and employee
requirements change. What is a firewall?
A company's security policy may include an
acceptable use policy, a description of how the company plans to
educate its employees about protecting the company's assets, an
explanation of how security measurements will be carried out
and enforced, and a procedure for evaluating the effectiveness of
the security policy to ensure that necessary corrections will be
made.
 What is a firewall?
A firewall is a software program or piece of hardware, or combination of both.

Firewalls work like a filter between your computer/network and the

Internet. You can program what you want to get out and what you want to get
in.

Everything else is not allowed

 It prevent unauthorized access to or from a private network.
Firewalls are frequently used to prevent unauthorized Internet
users from accessing private networks connected to the Internet,
especially intranets. All messages entering or leaving the intranet
pass through the firewall.
 Software firewalls are installed on your computer (like any
software) and you can customize it; allowing you some control
over its function and protection features.
A software firewall will protect your computer from outside
attempts to control or gain access your computer.
Implementation of e-commerce
strategy.
Strategy

How a business is going to compete,

What its goals should be,
and what plans and policies will be needed to carry out those
goals.
e-commerce strategy (e-strategy)
The formulation and execution of a vision of how a new or
existing company intends to do business electronically
 Organizational Strategy: 11
7

Commerce
Electronic
Prentice Hall 2006
The Strategic Planning Process

Strategy initiation.
Strategy formulation.
Strategy implementation.
Strategy assessment.
E-Strategy Implementation 11
8

Commerce
Electronic
Prentice Hall 2006
Strategy Implementation Issues
Application Development
Should site development be done internally, externally, or by a
combination of internal and external development?
Should the software application be built or will commercially available
software be satisfactory?
If a commercial package will suit, should it be purchased from the
vendor or rented from an ASP?
Will the company or an external ISP host the Web site?
If hosted externally, who will be responsible for monitoring and
maintaining the information and system?
 How does a firewall work?

At their most basic, firewalls work like a filter between your

computer/network and the Internet.
You can program what you want to get out and what you want to
get in. Everything else is not allowed.
There are several different methods firewalls use to filter out
information, and some are used in combination.
E-commerce
Architecture
Tier

What is a "tier"?
A "tier" can also be referred to as a "layer".
n the software world Tiers/Layers should have some or all of the
following characteristics:
Each tier/layer should be able to be constructed separately,
possibly by different teams of people with different skills.
 Several tiers/layers should be able to be joined together to make
a whole "something".
Each tier/layer should contribute something different to the
whole. A chocolate layer cake, for example, has layers of
chocolate and cake.
There must also be some sort of boundary between one tier and
another. You cannot take a single piece of cake, chop it up into
smaller units and call that a layer cake because each unit is
indistinguishable from the other units.
Each tier/layer should not be able to operate independently
without interaction with other tiers/layers.
 Presentation logic - the user interface (UI) which displays data to the user and
accepts input from the user. In a web application this is the part which
receives the HTTP request and returns the HTML response.
Business logic - handles data validation, business rules and task-specific
behaviour.
Data Access logic - communicates with the database by constructing SQL
queries and executing them via the relevant API.
Three tier ecommerce
architecture
 E-commerce Framework

Framework tells about the detail of how e-commerce can take

place.
It defines actually how e-commerce implemented, how online
trading or business can be done.
It defines important components that should be present to do
some transaction

However determining a right framework for ecommerce solutions

is a major challenge.
Most of the frameworks are quite general and usually depend on
the country or organization needs.
 Four Layer Framework

Barua et al.6 proposed a four-layer framework.

The Internet infrastructure layer addresses the issue of backbone
infrastructure required for conducting business via the net.
It is Largely made up of telecommunication companies and other
hardware manufacturers such as computer and networking
equipment.
The Internet applications layer provides support systems for the
Internet economy through a variety of software applications
 The Internet intermediary layer includes a host of companies that
participate in the market making process in several ways.
Finally, the Internet commerce layer covers companies that
conduct business in an over all ambience provided by the other
three layers
 Zwasss Hierarchical
Framework
Zwass (1998) presented a very comprehensive hierarchical
framework of E-Commerce, consisting of three meta-levels:

1:- Infrastructure,
2:- Services, and
3:- Products and structures
and
seven functional levels
 This model clearly builds upon the work undertaken by
the developers of the various layered network protocols
or architectures, which have been developed to explain the
inter-connection of telecommunications networking, such as the
OSI Reference Model.
which use a similar layering approach, where each layer has a
clearly defined area of functionality.
This separation of tasks means that a change at one layer does
not normally affect the other layers, with significant positive
implications for software developers.
The 3-Tier Architecture

The 3-Tier Architecture

This is where the code for each area of responsibility can be cleanly split away from the others
Note here that the presentation layer has no direct communication with the
data access layer - it can only talk to the business layer.
Requests and Responses in the 3
Tier Architecture
The Rules of the 3 Tier Architecture

The code for each layer must be contained with separate files
which can be maintained separately.
Each layer may only contain code which belongs in that layer.
Thus business logic can only reside in the Business layer,
presentation logic in the Presentation layer, and data access logic
in the Data Access layer.
The Presentation layer can only receive requests from, and return
responses to, an outside agent. This is usually a person, but may
be another piece of software.
 The Presentation layer can only send requests to, and receive
responses from, the Business layer. It cannot have direct access
to either the database or the Data Access layer.
The Business layer can only receive requests from, and return
response to, the Presentation layer.
The Business layer can only send requests to, and receive
responses from, the Data Access layer. It cannot access the
database directly.
The Data Access layer can only receive requests from, and return
responses to, the Business layer. It cannot issue requests to
anything other than the DBMS which it supports.
Disadvantage of this approach

The use of a similar approach to analysing E-Commerce would have

equivalent benefits in terms of separating out tasks and enabling
solutions to be developed without impact on other E-Commerce activities.
The disadvantage of this approach, however, is that there is less flexibility
because of the sequence of the layers. Why, for example, are there seven
layers?
We believe that the components of Electronic Commerce are
constantly changing over time and as particular technologies are
pressed into service.
The layering approach, which works very well for networking,
where the functions and activities can be fully described and do
not evolve outside the limits of the model, are thus less applicable
to the very mutable functions and activities of E-Commerce.
Kalakota and Whinston's
Pillars Framework
Kalakota and Whinston have also developed a generic approach
to providing a framework for Electronic Commerce (Kalakota &
Whinston 1996).
Using a very different scheme from that taken by Zwass, they
use the metaphor of pillars (public policy and technical
standards), to support four infrastructures
(network, multimedia content, messaging, and common
business services)
on top of which they place E-Commerce Applications.
 These authors suggest that the elements of a framework for E-
Commerce are a convergence of technical, policy and business
concern. This model is simple to understand and visually
attractive but it lacks theoretical depth and
is not particularly useful for researchers endeavouring to
incorporate it into empirical research projects.

We believe that this model is useful for those who are

approaching Electronic Commerce for the first time
but do not feel that it can be used as a foundation for more
detailed analytical study.
Riggins and Rhee's Domain
Matrix
Riggins and Rhee (1998) have used the Harvard matrix approach to
identify a view of E- Commerce based upon type of relationship and
internal/external focus.
This descriptive framework takes as its axes the location of the
application user and type of relationship,
thus essentially distinguishing between intranet-based applications and
those which use either an extranet or the public Internet to provide access
to the
applications concerned.
Such a model is clearly useful to companies which wish to classify their
trading partners into internal and external and, within these, into new and
ongoing relationships it categorises E-Commerce applications into four
categories
 which can be helpful in identifying relationships and technology
needs.
Despite these useful characteristics, however, the model is
limited in its identification of E-Commerce types being primarily
focused upon trading relationships.
It would be more difficult to use such a model in the development
of, say, a government-sponsored virtual community such as
Victorias Warrnambool on the Web project. (Warrnambool on the
Web 1999)
 If you look carefully at those layers you should see that each one
requires different sets of skills:
The Presentation layer requires skills such as HTML, CSS and
possibly JavaScript, plus UI design.
The Business layer requires skills in a programming language so
that business rules can be processed by a computer.
The Data Access layer requires SQL skills in the form of Data
Definition Language (DDL) and Data Manipulation Language
(DML), plus database design.
What is a Domain Name?

New computer users often confuse domain names with universal

resource locators, or URLs, and Internet Protocol, or IP, addresses.
The universal resource locator, or URL, is an entire set of directions,
and it contains extremely detailed information.
The domain name is one of the pieces inside of a URL.
An Internet Protocol, or IP, address is different than a domain name
The IP address is an actual set of numerical instructions.
domain name as a nickname for that code so that can remember easily.
Ip could be 232.17.43.22, for example. However, humans cannot
understand or use that code.
That why name given to numeric which difficult to remember.
 For example, in the URL
http://www.pcwebopedia.com/index.html, the domain name is
pcwebopedia.com.
Every domain name has a suffix that indicates which
top level domain (TLD) it belongs to. There are only a limited
number of such domains.
Because the Internet is based on IP addresses, not domain
names, every Web server requires a Domain Name System (DNS)
server to translate domain names into IP addresses
For example:
gov - Government agencies
edu - Educational institutions
org - Organizations (nonprofit)
mil - Military
com - commercial business
net - Network organizations
ca - Canada
th - Thailand
Difference between HTTP and
HTTPS
HTTP, HTTPS
The "S" in HTTPS indicates a secure site.
If you visit a web site or web page, and look at the address in the
web browser.
it will likely begin with the following: http://. This means that the web
site is talking to your browser using the regular 'unsecured'
language.
This is why you never ever enter your credit card number in an http
web site
But if the web address begins with https://, your computer is talking
to the web site in a secure code that no one can see.
Difference Between the Internet
and the WWW?
People commonly use the words "Internet" and "Web"
interchangeably.
This usage is technically incorrect.
The Internet is the large container.
the Web is a part within the container.
the Net is the restaurant.
the Web is the most popular dish on the menu
The World Wide Web, or "Web" for short, is a massive collection
of digital pages.
 the Web is based on hypertext transfer protocol.
But another protocol you can use like ftp etc.
Only http is www another is not.
The Internet, not the Web, is also used for e-mail, which relies on
SMTP, instant messaging and FTP.
So the Web is just a portion of the Internet
Characteristics of Domain Name

Domain names are restricted to

only the ASCII letters 'a' through 'z' (in a case-insensitive
manner).
the digits '0' through '9.
and the hyphen ('-').
 Parts of a Domain Name

Each domain name consists of two parts.

Top Level Domain - A top-level domain (TLD) is the part of the
domain name located to the right of the dot. The most common
top-level domains are .COM, .NET, and .ORG. Some other popular
top-level domains are .BIZ, .INFO, .NAME and .IN etc.
Second Level Domain - . The second-level domain name is the
part of the domain name located to the left of the dot. Steps-to-
make-your-own-website is the second-level domain name and
represents the organization or entity behind the internet. Second
Level Domain name must be registered with an Internet
Corporation for Assigned Names and Numbers (ICANN)-
accredited registrar.
 Domain Name Level

Top Level Domain - A top-level domain (TLD) is the part of the

domain name located to the right of the dot. The most common
top-level domains are .COM, .NET, and .ORG. Some other popular
top-level domains are .BIZ, .INFO, .NAME and .IN etc.
Generic top level maintained by IANA and country code top level
reserved for a country.
Second Level Domain - . The second-level domain name is the
part of the domain name located to the left of the dot.
Third level domain name:-which are written immediately to
the left of a second level Domain.
Each level is separated by a dot or period symbol.
 What is a Subdomain?

A subdomain is a domain name that is a part of the main domain.

It is used to organize a website with regard to various functions,
sections, topics, etc.
For example www.google.com is the main domain name.
They have separated Gmail, that handles their mail section of
the website as mail.gmail.com.
Similarly they have other subdomains too which are other
sections of their main website.
like maps.google.com, news.google.com, video.google.com, etc
 What is DNS?

DNS is the acronym for Domain Name System.

This system translates the number format of your IP address to
the word format.
It is done because it is relatively easier to remember words than
numbers.
it is easier to name an e-mail address as service@sitesell.com
than service@216.95.221.39.
The Domain Name System (DNS) is a hierarchical distributed
naming system for computers, services, or any resource
connected to the Internet or a private network
 Digital Certificate

An attachment to an electronic message used for security purposes

It is trusted ID card in electronic form that binds a websites public
encryption key to their identity for the purpose of public trust.
The most common use of a digital certificate is to verify that a user
sending a message is who he or she claims to be, and to provide the
receiver with the means to encode a reply.
An individual wishing to send an encrypted message applies for a
digital certificate from a Certificate Authority (CA).
The CA issues an encrypted digital certificate containing the
applicant's public key and a variety of other identification
information.
 In the physical world, you protect your written correspondence by
putting it in an envelope before posting. In the online world,
sending an email message is like sending a postcard.
it is easy to intercept and read as it travels across the Internet.
Instead of risking disclosure of your private email message,
one option for safeguarding them is to use a digital certificate