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UNIT-1

1. What is the basic frame work requirement of e-commerce Implementation? Ans: ELECTRONIC COMMERCE FRAME WORK: E commerce applications will be built on the existing technology infrastructure myriad of computers , communications networks and communication software that can form nascent Information Superhighway. The various building blocks in the infrastructure are: Common business services for facilities the buying and selling process Messaging and information distribution , as means of sending and retrieving information. Multimedia content and network publishing for creating a product and a means to communicate about it. The information superhighway the very foundation- for providing the highway System along which all e-commerce must travel.

The two pillers supporting all e commerce applications and infrastructure are just as indispensable: Public policy to govern such issues as universal access , privacy and information pricing. Technical standards to dictate the nature of information publishing , user Interfaces and transport in the interest of compatibility across the entire network. The I-way must be mesh of interconnected data highway of many forms Like telephone wires, cable TVs , radio based wireless- cellular and satellite and the nature of vehicular traffic is important . The information and multimedia content determines the what type of vehicle is needed. I way messaging software will be forma like email , EDI or point to point file transfers. In case of vehicle traffic , public issues concern pollution, consumer production from fraud , environmental impact and taxation. In case of information traffic public policy issues deal with the cost of accessing information ,regulation to protect consumers from fraud and to protect their right to privacy. In this case information access from any type of consumer chosen devices like PCS, portable hand held devises , ands operating systems.

2. Explain about Quick Response Retailing Ans: Quick response is a version of JIT purchasing tailored for retailing. To reduce the risk of out of stock retailers are implementing the QR systems. It provides for a flexible response to product ordering and lowers costly inventory levels. QR retailing focuses on market responsiveness while maintaining low level of stocks. It creates a closed loop encompassing the retailer , vendor , consumer chain, and as consumers make purchases the vendor automatically orders new deliveries from the retailers through its computer network. figure below gives the various steps of QR chain.

3. Discuss briefly about electronic commerce organization applications Ans: Changing Business Environment: The traditional business environment is changing rapidly as customers and business seek flexibility to change trading partners , carriers and networks at will .The company can increase business communications , to help expand market share and to maintain long term visibility in to days business environment. The I way will allow business to exchange information among constantly changing sets of customers and suppliers and researchers in government and academia on a global. Inter-networking whether internally or externally with customers and business partners can be useful tool to time based competitive business. Internetworking via public network provide a path ways to conduct ecommerce between trading partners ,support collaboration with partners who can apply needed capabilities and stay close to the customer. In general firms utilize consumer and market research to form the assumptions that shape its strategy , dictate its decisions about what to do and what not do. Marketing and Electronic Commerce : Electronic commerce is forcing companies to rethink the existing way of doing target marketing and relationship marketing and event marketing(setting up virtual booth where interested people come and visit. Interactive marketing performed via interactive multimedia catalogs that give same look and feel as a shopping channel. An CUC is a shopping service that maintains detailed information about 250,000 products and it is services by dialing 800 number and speaking to a live person we can consult computer database. Inventory Management and organizational applications: The adoption of computerized paperless operations to reduce trading costs and facilitate the new business processes. In the manufacturing industry they are known as just-in-time

inventory systems , in retail industry they are quick response programs and in transportation industry they are consignment tracking systems. Just in time manufacturing :It is viewed as integrated management systems consisting of a number of different management practices dependent on the characteristics of specific plants. The following management practices associated with JIT systems are : Focused factory , reduced setup times, group technology , total productive maintenance ,uniform workload . JIT purchasing, total quality control. To achieve JIT savings many large corporations have installed private communication networks. Quick Response Retailing : Quick response is a version of JIT purchasing tailored for retailing. To reduce the risk of out of stock retailers are implementing the QR systems. It provides for a flexible response to product ordering and lowers costly inventory levels. QR retailing focuses on market responsiveness while maintaining low level of stocks. It creates a closed loop encompassing the retailer , vendor , consumer chain, and as consumers make purchases the vendor automatically orders new deliveries from the retailers through its computer network. figure below gives the various steps of QR chain. Supply Chain management : Supply chain management (SCM) is also called extending which means integrating the internal and external partners on the supply and process chain to get raw materials to the manufacturer and finished products to the consumer. Most of the companies fails because lack of integration due to fragmented supply chain management. Supply Chain management ( SCM ) have various functions: 1.Supply chain management: The goal is to reduce the num the number of suppliers and get them to become partners in business in a win / win relationship. 2.Invetory management : Its goal is to shorten the order-ship-bill cycle. 3. Distribution management: Its goal is to move documents related to shipping. 4.Payment management : The goal is to link the company and the suppliers and distributors so that the payment can be sent and received electronically. 5. Financial management : The goal is to enable global companies to mange their Money in various foreign exchange accounts. 6. Sales for productivity : its goal is to improve the communication and flow of information among the sales , customer and production functions. 4.Explain Anatomy of Ecommerce applications? Ans: The various applications are : 1.Multimedia content for e-commerce applications 2.Multi media storage servers and e-commerce applications 3. client server architecture for electronic commerce 4. Video servers and electronic commerce 5.Information delivery/ transport and Ecommerce applications a) Consumer access devices 1.Multimedia content for e-commerce applications Multimedia is the use of digital data in more than one format such as combination of text, audio, video, graphics in computer file. Multimedia is associated with the hardware

convergence taking place in the communications, computer and cable industry as the next generation digital.

Access to multimedia content depends on the hardware and the software applications that run on it. The success of ecommerce applications also depends on the variety and innovativeness of multimedia content and packaging. It includes televisions productions, traditional print productions, software and information services.

UNIT-2
1. Explain mercantile models from the customer's perspective Ans: This model consists of seven different activities that can be grouped into Three different Phases: 1. Pre purchase phase 2. Purchase consummation phase 3. Post purchase interaction

1. pre purchase phase : It includes search and discovery for a set of products in the larger information space capable of meeting customer requirements and product selection from the smaller set of products based on attribute comparison. In general consumer are categorized into 3 types: a) Impulse buyers - who purchase products quickly b) Patient buyers who purchase products after making some comparisons c) Analytical buyers- who do substantial research before making the decision to purchase products or services. In fact marketing researchers have isolated several types of purchasing. Specifically planned purchases : The need was recognized on entering the store and the shopper bought the exact item planned. Generally planned purchases: The need was recognized but the shopper decided instore on the actual manufacturer of the item to satisfy the need. Remainder purchases: The shopper was reminded of the need by some store influence. Entirely unplanned purchases: The need was not recognized entering the store. The Consumer Information Search Process : Information search is defined as the degree of care, perception and effort directed toward data related to the decision problem. It is of two types. 1.The organizational search process: It can be viewed as process through which an organization adapts to change in its external environment as new suppliers, new products , new services. i) In general it is an activity designed to balance the cost of acquiring information with the benefits of improved final decisions . This process can be determined in part by market characteristics.

ii) consumer search: need to examine how particular aspects of the buyers situation and the shopping experience that is being sought affect the search process. 2. purchase consummation phase : It includes mercantile protocols that specify the flow of information and documents associated with purchasing and negotiation with merchants for suitable terms like price , availability and delivery dates. The buyer and seller must interact to provide mercantile transaction. Mercantile transaction is the exchange of information between the buyer and seller followed by necessary payment. It requires the following transactions. a. Buyer contacts to purchase product or service and it performed through online - www, email , b. Vendor states price c. Buyer and vendor may or may not engage in negotiation. d. if satisfied buyer authorizes payment to the vendor e. vendor contacts his her billing service to verify it. Merchantiles process using Digital Cash: It includes the following protocol. a. Buyer obtains anonymous electronic cash from the issuing bank. b. Buyer contacts the seller to purchase or buy a product. c. Seller states the price. d. Buyer sends the e-cash to the seller e. Seller contacts his bank to verify the validity of the e-cash. f. Bank gives positive signal to the seller after ensuring authentication g. Seller delivers the product to the buyer. h. Customer gets the product delivery. 3. Post Purchase Interaction Phase : It includes Customer service and support to address customer complaints, products returns and product defects. In this we have three issues: 1.Inventory issues: 2.Database access and Compatibility issues 3.Customer service issues. 1.Inventory issues: To serve a customer properly company should inform the right way when an item is ordered and sold out. 2.Database access and Compatibility issues: The customer can access required data from the large amount of information managed by the vendors. It is supported to the customer in the information super highway. 3.Customer service issues: Here customer questions about the product and other details in their mind regarding to product can be resolved. 2. Explain mercantile models from the merchant's perspective. Ans: Merchantiles model from the Merchantiles perceptive

It consists of eight different activities that are grouped into three phases: 1.Presale phase 2. Product service / delivery 3. Post sale interaction phase 1.Presale phase : It consists of two activities namely a) Customer enquiry and order planning and order generation b) Cost estimation and price of product services a) Customer enquiry and order planning and order generation: Once the merchant receives the order enquiry they need to plan the products by sales forecast with the help of people close the customer either in the sales force or in the marketing group at company level and at the same time a group of in manufacturing function details. A capacity plan that specify how much money spend, how many people will be hired and how inventory will be created. Order planning leads to order generation and orders are generated by different ways like sales force broad cast, sends emails to customers, create www web pages etc. b) Cost estimation and price of product services: pricing is the bridge between the customer needs and company capabilities. Company does not understand how to execute order based pricing in online markets.

Pricing at individual order levels depends on understanding the value to the customer. Although order based pricing is difficult to work that requires meticulous thinking and deliberate execution. 2. Product service/delivery: It consists of four activities: a)order receipt and entry b)order selection and prioritization c)order scheduling d)order full fillness and distribution a)order receipt and entry : After acceptable price code the customer enters the order receipt and entry phase of order management cycle(OMC). This was under the purview of departments title customer service , order entry And the inside sales desk. These departments are staffed by customer service representatives. b)order selection and prioritization : The customer service representative are responsible for choosing which orders to accept and which orders to decline. In fact all customer orders are created equal but some are simply better than others. The desirable orders are those that fit the capabilities and offer healthy company put efforts into order selection link it their business strategy to make more money regardless of production capacity. company gain by order prioritization. c) order scheduling : In this phase , the prioritized orders get started into actual production or Operation sequence. It is difficult because various functional departments like marketing, sales, customer service and production. Due to this differentiation they may have conflicting goals. Compensation systems and communication between the systems is not existent. Example: The customer service reporting to sales department they may separated from physically( long distances) or production scheduling which Reports to manufacturing unit which is far away. d)order full fillness and distribution: Here actual service /product is made where details vary from industry to industry And it involves order fulfillment that requires multiple functions in multiple locations. The different parts of the order may be created in different manufacturing units and are merged at another site. 3.Post sale interaction phase: It consists of two different activities namely: a. Order billing and account payment management b. Customer services and support a. Order billing and account payment management: After the product distribution , billing is handled by the finance staff who view their job is getting the bill out efficiently , collectively and quickly. Billing is designed to ensure the needs and interests of the company but not the interest of the customers. b. Customer services and support : It plays an important role in the company profit equation.

It includes elements like physical installation of products ,repair , maintenance and Customer training and equipment upgrading and disposal.

3. What are steps taken by customers in product/service purchasing? Ans: It includes Customer service and support to address customer complaints, products returns and product defects. In this we have three issues: 1.Inventory issues: 2.Database access and Compatibility issues 3.Customer service issues. 1.Inventory issues: To serve a customer properly company should inform the right way when an item is ordered and sold out. 2.Database access and Compatibility issues: The customer can access required data from the large amount of information managed by the vendors. It is supported to the customer in the information super highway. 3.Customer service issues: Here customer questions about the product and other details in their mind regarding to product can be resolved.

Customer training and equipment upgrading and disposal. UNIT-3 1. What is an electronic bill? How does it facilitate e-commerce? Ans: Electronic cash (E-Cash) : It combines the computerized convenience with security and privacy that improves on paper cash. It makes an alternative for payment over the internet. It replaces the cash as principle payment vehicle in consumer oriented electronic payment system. a) Properties of e-cash: It has the following four properties : i) Monetary value ii) Interoperability iii) Retrievability iv) Security i) Monetary value : It must be backed by either cash or currency , bank authorized credit or bank certified cashiers check. ii) Interoperability : E-cash exchangeable as payment for the other e-cashes or goods or services. iii) Retrievability : It must be storable and retrievable means that the remote storage and retrieval would allow to exchange electronic cash(e-cash). iv) Security : e-cash should not be easy to copy or tampered while being exchanged.

b) E-Cash in Action: It is based on cryptography system called digital signature Method. This method involves a pair of numeric keys that work in tandom one for encoding and other key is used for decoding . The encoded message within one numeric key can only be decoded with other Valid numeric key and none other. c) Purchasing E-Cash from Currency Server: - E-Cash purchased an online currency server (bank). It involves the following two steps i) Establishing of an account ii) Maintaining enough money in that account. E-Cash transactions in which multiple customers (internationally) have account With central online bank , so that they can do international currency transactions Like foreign services as well as local services etc. The customer use the electronic cash software on a computer to generate a random Number which serves as note. It can be exchanged for debited transaction ,the bank issue its private key to Digitally sign the note for amount to be requested and transmitted the note back to the customer. The new currency server is issuing a bank note with a serial number and a dollar. Risk operations and e-cash : It is performed by imposing constraints like limits on e-cash Time limit : means that over a given time period electronic money is valued How much can be stored on and transformed by electronic money. The number of exchanges that can takes place before a money needs to be re deposited with a bank. The number of cash transactions that can be Made during a period of time . 2. What is electronic fund transfer? What are the security issues involved in it? Ans: Electronic fund transfer: Electronic fund transfer or EFT is the electronic exchange or transfer of money from oneaccount to another, either within a single financial institution or across multipleinstitutions, through computer-based systems.Security issues involved in Electronic fund transfer:Security Security means the protection of the integrity of EFT systems and their information from illegalor unauthorized access and use. Although the loss per theft appears to be greater than for paper based payment systems, there is no real evidence that EFT systems to date have resulted in ahigher than average crime rate. Why, then, is the security of EFT systems an important publicconcern and potentially a major policy issue? In comparison with other payment systems, EFTappears to have some additional vulnerabilities.For example:EFT systems have many points of access where transactions can be affected in unauthorized ways because of direct customer involvement with the dynamics of the systems, the use of telecommunication lines, and the ways in which data are aggregated and transmitted among and between sites and institutions.EFT crime is often difficult to detect because funds/data can be removed or manipulated byinstructions hidden in complex computer software; the dynamics of the criminal action may beunderstood by only a few experts within the institution.

EFT crime offers a sporting element, or intellectual challenge, that perhaps is as enticing to someas the opportunity for financial gain.It is possible, in theory, for large banks of data to be destroyed by remote agents, creating theopportunity for maliciousness, extortion, blackmail, or terrorism.EFT systems reduce the effectiveness ofor eliminate altogether some of the traditionalmethods of controlling and auditing access to financial accounts.The level of EFT security violations is difficult to assess at present because there isunderreporting of EFT crime, a paucity of information about EFT security, and a lack of informed public discussion. While there is a danger that giving these problems higher visibility through public discussion may at first exacerbate them, the public is entitled to know what risks they areexposed to in using EFT services. Furthermore, both law enforcement agents and financialinstitutions would benefit by sharing information about vulnerabilities, defense strategies, andsecurity-enhancing technologies.Some believe that effective technology and sound management procedures exist toadequately assure EFT security, though even present technology and procedures are not allwidely used. Their use varies among institutions. There is as yet no clear and consistentset of industrywide security standards for protecting computer systems. Better information aboutEFT security would allow Congress and State legislatures to assess more effectively the possibleneed for new legislation and/or regulations 3. What is an Electronic check? Explain Ans: ELECTRONIC CHECKS They are designed to accommodate many individual and entities that might prefer to pay on credit or other than cash.

From the above diagram the buyer must register with a third party accounting server before they are able to write electronic check. The accounting server acts as billing a servicing and the registration process depends on the accounting server , they may require a credit card or bank account details to back the checks . Once the customer registered a buyer can contact seller goods and services to complete a transaction .The buyer sends the check to the seller for a certain amount of money.

These checks may be sending using email or other transport. When deposited the check authorize transfer of account balance from the current against the check was drawn to the account. Accounting server authenticates digital signature on the check using the key method of cryptographic algorithm. E-Check have the following advantages: They work same as traditional checks, thus simplifying customer education. It is well suited for clearing micro payments. It creates float and availability of transaction cost. Financial risk is taken by accounting server so easier acceptance. Another check called netcheque was developed by Information science institute(ISI) by Clifford Newman. It include software for writing and depositing checks independent of other applications. The API will provide common functions to be called as automatically when with other transaction functions. 4.Expalin About Smart Card? Ans: Smart cards and electronic payment systems: 1.Smart cards are credit and debit cards which are enhanced with micro processors capable of holding more information then the traditional magnetic chips. 2. Smart cards technology widely used in countries like Germany and Japan and France to pay public transportation , phone calls etc. 3. Smart cards are basically of two types: a. Relationship based smartcard b. Electronic purses and debit cards a. Relationship based smartcard : It is an enhancement of existing card service or the addition of new services that a financial institutions delivers to its customers via chip based or other device. The new service includes access multiple accounts , value added market programs etc. The enhanced credit card store more information of card holder like birth date , personnel shopping preference and other his own details. Advantages or use of smart cards : The following are the advantages of the smart cards: i ) It is used to access multiple accounts like credit , debit and stored value for e-cash on one card or on electronic device. ii) It performs different functions like cash access , bill payment , balance enquiry etc. iii)It is used as to access multiple account located at different locations by using multiple device types like PDA ,PC , screen phone and an ATM. b. Electronic purses and debit cards : It is a wallet sized smart card embedded with programmable micro chip that stores some of money for people to use instead of cash. It works in the following manner of activities are performed in it. After the purse is loaded with money at ATM it can be used to pay for the vending machine need only verify that a card is authenticate or not and there is enough money or not.

The value of purchase deducted from the balance on the card and in the vending machine. The remaining balance in the card is displayed by ATM on the screen. The amount in the purse is empty then it can be filled with more money.

5.Explain about Third party processors and credit cards details? Ans: Third party processors and credit cards details : In this consumers register with a third party on the internet to verify electronic micro transactions. It use various mechanisms with attribute of electronic tokens. It differs from electronic tokens in TWO aspects: a. they depends on existing financial instruments b.They require online involvement of more then one party at a time. The companies who providing third party payment services on the internet are: 1. First virtual ( www.fv.com) and 2.open market ( www.openmarket.com ) The online third party processors (OTPPS) created a six step process to buy information on line.

1. The consumer acquires an OTPP account number by filling out registration form. 2. to buy anything online , the consumer requests item from the merchant by quoting his OTPP account number. 3. The merchant payment contacts the OTPP payment server with the customers account number.

4. The OTPP payment server verifies the customers account number for n the vendor and check for sufficient funds. 5. the OTPP sends (the payment server) electronic message to the buyer by using automated message from www or sent by OTPP server or sent by simply email . 6. If the customer payment server gets yes from the customer then the merchant is informed and customer is allowed to do the transaction. OTPP server has two servers namely : a. Merchant server and b. payment server With the payment server user may can make account then by using client browser a user server by clicking online payment URL. The online payment URL encodes the following information to the status of page duration it specifies how long customer gets access to the target URL. This payment URL send the above data is to the payment server. The merchant runs an HTTP server that is modified to access URLS. It should includes the business pros and cons.

UNIT-4
1. Explain about EDI Layered architecture? Ans: EDI is the electronic transfer from one computer to another computer process able data using agreed standard to structure the data. Example EDI transaction EDI handbook etc. EDI is developed in 1960s means of accelerating the movements to shipments and transportation. It is aimed at forcing boundary less relationship that means it bringing down the boundaries that restrict how they interact and do business each other. Layered architecture of EDI is shown below:

1.EDI Document standard layer : 1.It specifies business form structure and to some extent influence content seen at the application layer. Example: purchase order name field x12 standard might be to hold 50 characters and 75 characters field produced name truncating during translation from application layer to document standard layer. 2.EDI Transport layer : It corresponds with non electronic activity of sending business from one company to another company .It can send using postal service ,registered mail and certified mail and email etc. Generally EDI transport layer chooses email As the carrier services. 3.EDI Physical layer : It describes the physical devices which involved in transaction. They use various devices like dial up systems ,internet ,I-WAY,

EDI in Action : Edi has been used in the procurement function to steam-line the interaction between the Buyer and seller .the other uses for EDI are universities use EDI to exchange transcripts quickly. Automatically units uses EDI to transmit large complex engineering design created on the specialized computers. Large multinational companies use EDI to send online price catalogs to customers Listed products , prices ,discounts and terms. 2. Write about EDI application in business? Ans: It involves the various of applications in business , they are i. International Trade and EDI and ii.The components of international trade iii. The customs and international trade and iv. The logics of transport. The below diagram describes the various processing of operations involved in The design of product.

The development of global sourcing has been closely intertwined with the rapid evolution of business information. Business information is defined in the broad sense as all information required by enterprises for the efficient paling execution and monitoring of product manufacturing and marketing this includes not only raw data but also product data for design and engineering fig. show the movement of information from external component information producers to what we call customized product design brokerages .

3.

Write short notes on Information flow without EDI. Ans: Buyer Seller
Finance department bill Paper based mail room Sales department Order confirmation

Purchase request initiated in the organization

Finance department payment

Purchase department

Paper based mailroom Order delivery

Inventory and ware housing

Receiving department

Finance department Product delivery

Finance departmen t

Information flow without EDI The idea behind EDI is very simply EDI seeks to take what has been a manually prepared form or a form from a business application .translates that data into a standard electronic format and transmit it . at the receiving end the standard format is untranslated into a format that can be read by the recipients application Benefits of EDI can be seen by comparing the flow of information between organizations before and after its implementation this purpose the purchasing application provides an ideal scenario .EDI has been used extensively in the procurement function to streamline the interaction between the buyer and seller .the fig. shows the information flow when paper documents are shuffled between organizations via the mailroom.when the buyer sends a purchase order to a seller the relevant data must be extracted from the internal database and recorded on hard copy this copy is then forwarded to the seller after passing through several intermediate steps .seller receive information in the form of letter and in some cases a vast number of facsimiles .this information is manually entered into the internal information systems of the recipient by data entry operators . this process generates a considerable amount of overhead in labor costs and time delays .The reproduction of information also increases the risk of errors caused by incorrect data entries. This pervasive practice of converting digital data into hard copy data that is reconverted into electronic information again on the receiving end generates unnecessary costs. It is quite possible to exchange the information in its electronic format by means of other carriers .

Step1 . Buyers computer sends purchase order to seller computer Step2 .Sellers computer sends purchase order confirmation to buyers computer Step3. Sellers computer sends Booking request to transport companyscomputer Step4.Transport companys computer sends Booking confirmation to sellers computer Step5.Sellers computer sends Advance Ship notice to buyers computer Step6.Transport companys computer sends status to sellers computer Step7.Buyers computer sends receipt advice to sellers computer Step8.Sellers computer sends invoice to buyers computer Step9.Buyers computer sends payment to sellers computer.

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