Electronic Data Interchange:

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

Steps in an EDI System

Following are the steps in an EDI System.
A program generates the file which contains the processed document.
The document is converted into an agreed standard format.
The file containing the document is send electronically on network.
The trading partner receives the file.
An acknowledgement document is generated and sent to the originating
organization.

Advantages of an EDI System

Following are the advantages of an EDI System.
Reduction in data entry errors. - Chances of errors are much less being use

of computer in data entry.

Shorter processing life cycle - As orders can be processed as soon as they
are entered into the system. This reduced the processing time of the transfer
documents.
Electronic form of data - It is quite easy to transfer or share data being in
electronic format.
Reduction in paperwork - As lot of paper documents are replaced with
electronic documents there is huge reduction in paperwork.
Cost Effective - As time is saved and orders are processed very effectively,
EDI proves to be higly cost effective.
Standard Means of communication - EDI enforces standards on the content
of data and its format which leads to clearer communication

CRM
Customer Relationship management is the strongest and the most efficient approach in maintaining and
creating relationships with customers. Customer relationship management is not only pure business but also
ideate strong personal bonding within people. Development of this type of bonding drives the business to
new levels of success.
Looking at some broader perspectives given as below we can easily determine why a CRM System
is always important for an organization.
1. A CRM system consists of a historical view and analysis of all the acquired or to be acquired
customers. This helps in reduced searching and correlating customers and to foresee customer
needs effectively and increase business.
2. CRM contains each and every bit of details of a customer, hence it is very easy for track a
customer accordingly and can be used to determine which customer can be profitable and which
not.
3. In CRM system, customers are grouped according to different aspects according to the type of
business they do or according to physical location and are allocated to different customer
managers often called as account managers. This helps in focusing and concentrating on each and
every customer separately.
4. A CRM system is not only used to deal with the existing customers but is also useful in acquiring
new customers. The process first starts with identifying a customer and maintaining all the
corresponding details into the CRM system which is also called an Opportunity of Business. The
Sales and Field representatives then try getting business out of these customers by sophistically
following up with them and converting them into a winning deal. All this is very easily and efficiently
done by an integrated CRM system.
5. The strongest aspect of Customer Relationship Management is that it is very cost-effective. The
advantage of decently implemented CRM system is that there is very less need of paper and
manual work which requires lesser staff to manage and lesser resources to deal with. The
technologies used in implementing a CRM system are also very cheap and smooth as compared to
the traditional way of business.
6. All the details in CRM system is kept centralized which is available anytime on fingertips. This
reduces the process time and increases productivity.
7. Efficiently dealing with all the customers and providing them what they actually need increases the
customer satisfaction. This increases the chance of getting more business which ultimately
enhances turnover and profit.
8. If the customer is satisfied they will always be loyal to you and will remain in business forever
resulting in increasing customer base and ultimately enhancing net growth of business.

DIFFERENCE BETEEN TRADITONAL ECOMMERCE AND E COMMERCE

Suppy chain management:

Definition of Supply chain management (SCM)
It is the process of planning, implementing, and controlling the operations
of the supply chain with the purpose to satisfy customer requirements as
efficiently as possible. Supply chain management spans all movement and
storage of raw materials, work-in-process inventory, and finished goods
from point-of-origin to point-of-consumption.
Some experts distinguish supply chain management and logistics management, while others
consider the terms to be interchangeable. From the point of view of an enterprise, the scope
of supply chain management is usually bounded on the supply side by your suppliers
suppliers and on the customer side by your customers customers. Supply chain management
is also a category of software products.
Supply chain management must address the following problems:
Distribution Network Configuration: Number and location of suppliers, production
facilities, distribution centers, warehouses and customers.
Distribution Strategy: Centralized versus decentralized, direct shipment, cross docking,
pull or push strategies, third party logistics.
Information: Integrate systems and processes through the supply chain to share valuable
information, including demand signals, forecasts, inventory and transportation.

COMPONENTS OF SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM) is the combination of art and science that goes into
improving the way your company finds the raw components it needs to make a product or
service and deliver it to customers. The following are five basic components of SCM:
Plan This is the strategic portion of SCM. You need a strategy for managing all the
resources that go toward meeting customer demand for your product or service. A big
piece of planning is developing a set of metrics to monitor the supply chain so that it
is efficient, costs less and delivers high quality and value to customers.
Source Choose the suppliers that will deliver the goods and services you need to
create your product. Develop a set of pricing, delivery and payment processes with
suppliers and create metrics for monitoring and improving the relationships. And put
together processes for managing the inventory of goods and services you receive
from suppliers, including receiving shipments, verifying them,

12

transferring them to your manufacturing facilities and authorizing supplier payments.

Make This is the manufacturing step. Schedule the activities necessary for production,
testing, packaging and preparation for delivery. As the most metric-intensive portion
of the supply chain, measure quality levels, production output and worker
productivity.
Deliver This is the part that many insiders refer to as logistics. Coordinate the receipt
of orders from customers, develop a network of warehouses, pick carriers to get
products to customers and set up an invoicing system to receive payments.
Return The problem part of the supply chain. Create a network for receiving defective
and excess products back from customers and supporting customers who have
problems with delivered products.
::
FEATURES OF SUPPLY CHAIN MANAGEMENT

In electronic commerce, supply chain management has the following features

An ability to source raw material or finished goods from anywhere in the world
A centralized, global business and management strategy with flawless local execution
On-line, real-time distributed information processing to the desktop, providing total
supply chain information visibility
The ability to manage information not only within a company but across industries and
enterprises
The seamless integration of all supply chain processes and measurements, including
third-party suppliers, information systems, cost accounting standards, and
measurement systems
The development and implementation of accounting models such as activity based
costing that link cost to performance are used as tools for cost reduction
A reconfiguration of the supply chain organization into high-performance teams going
from the shop floor to senior management.

B TO B

E ADVERTISING AND ONLINE PUBLISHING

Advertising is an attempt to disseminate information in order to effect a buyer-seller
transaction and to customers to buy a certain product or service. The traditional advertising
was impersonal, one-way mass communication or mass marketing whereas internet has
enabled consumers to interact directly with advertisers and advertisements with a click of
mouse on an ad for more information. The internet has provided the sponsors with two-way
communication and e-mail capabilities, as well as allowing the sponsors to target specific
groups on which they want to spend money from their advertising budget, which is more
accurate than traditional one. One more aspect of internet is that it enables a truly one-to-one
advertisement. These prospects of internet advertisements have attracted the magazines, and
news papers, to float their sites on the web. Online periodicals also have shown interest in
including traditional advertisements as well as icons, which display an advertisers logo and
when clicked with a mouse, send a user across the web to the advertisers web site.
Reasons for Advertising on Internet
There are several reasons why companies spending more on internet advertising.
Use of internet is growing very rapidly.
Ads can reach very large number of potential buyers globally.
Internet ads are cheaper in comparison to television, radio, or newspaper and can be
updated any time with a minimal cost.

 Internet advertising is interactive and targeted to specific groups and/or individuals.

Increasingly valuable information: With more available information about the product
description in online advertising, the decision to purchase on the part of consumer is
easier. Thus more purchases can occur.
Reduced access fees: Advertisers cover a part of the internet access fees that usually
user has to pay. This reduced access fees can attract new internet users.
E-MARKETPLACE
Several financial institutions and telecommunication companies recently joined forces to
create one of Canadas largest B2B electronic marketplaces. The proposed company will
offer business products, equipment and furniture, computer hardware and accessories. They
will also offer business services such as travel, personnel, promotional items, and courier
services in a quick and efficient manner at a reduced cost. The newly formed company will
produce value by combining procurement expertise and significant purchasing volume with
the advantages of the e-market place. This will allow participants to save time and money and
stay focused on their strategic priorities and core competencies. The exchange will also create
opportunities for suppliers to increase sales by enabling new relationships between buyer and
sellers.
E-Marketplaces Business Model Needs Change
Many industry experts predict that the majority of these B2B e-marketplaces will not survive
the dot-com shakeout. A major stumbling block stems from manufacturers that were
connected with suppliers through systems that created duplicate, rather than complementary,
distribution channels. Whether for coalitions of brick-and mortar companies or independent
Net markets, this method fostered a lack of collaboration among customers and channel
partners. This lack of collaboration resulted in companies having to manually input
transactional data. The benefits of participating in public e-marketplaces require precise
systems integration. Buyers, meanwhile, grappled with the lack of connectivity to their backend systems. Sure it was great to be able to search multiple suppliers for the lowest prices on
goods and services, but when it came time to close the deal, buyers, more frequently than not,
used the phone and/or fax to avoid paying e-market transaction fees. This points to the flaw
in the public e-marketplaces business modelmost public marketplaces were not able to
move beyond the transaction simply because transaction fees formed the core of their
revenue streams.

Describes the advantages and disadvantages of E-Commerce.

Few innovations in human history encompass as many potential benefits as EC does. The
global nature of the technology, low cost, opportunity to reach hundreds of millions of
people (projected within 10 years), interactive nature, variety of possibilities, and
resourcefulness and rapid growth of the supporting infrastructures (especially the Web)
result in many potential benefits to organizations, individuals, and society. These benefits
are just starting to materialize, but they will increase significantly as EC expands.
The Benefits of EC
The new markets could be accessed through the online and extending the service
offerings to customers globally.
Internet shrinks the globe and broadens current geographical parameters to operate
globally

 Marketing and promotional campaigns can be done globally at the reduced cost.
Retaining the customer and the customer services could be improved drastically.
Strengthen relationships with customers and suppliers ?
Streamline business processes and administrative functions
No added sales staff
A catalogue which is quickly and easily updateable. This means that when prices or
stocks are changed, you dont have to have hundreds or thousands of obsolete catalogues
lying around. You dont have to wait for the printer to deliver the catalogue before the
new prices can come into effect.
The facility to advertise daily, weekly or monthly specials and sales, or any special
discounts - and they can be changed within minutes, when and if necessary.
You can also add a marketing message which highlights your strengths, such as the
range and quality of your products or services - or anything else you want to tell your
customers.
Benefits to Organizations
Electronic commerce expands the marketplace to national and international markets.
With minimal capital outlay, a company can easily and quickly locate more customers,
the best suppliers, and the most suitable business partners worldwide.
Electronic commerce decreases the cost of creating, processing, distributing, storing,
and retrieving paper-based information. For example, by introducing an electronic
procurement system, companies can cut the purchasing administrative costs by as much
as 85 percent.
Ability for creating highly specialized businesses. For example, dog toys which can be
purchased only in pet shops or department and discount stores in the physical world, are
sold now in a specialized www.dogtoys.com
Electronic commerce allows reduced inventories and overhead by facilitating pulltype supply chain management. In a pull-type system the process starts from customer
orders and uses just-in-time manufacturing.
Electronic commerce reduces the time between the outlay of capital and the receipt of
products and services.
Electronic commerce initiates business processes reengineering projects. By changing
processes, productivity of salespeople, knowledge workers, and administrators can
increase by 100 percent or more.
Electronic commerce lowers telecommunications cost-the Internet is much cheaper than
VANs.
Other benefits include improved image, improved customer service, newfound business
partners, simplified processes, compressed cycle and delivery time, increased
productivity, eliminating paper, expediting access to information, reduced transportation
costs, and increased flexibility.
Benefits to Consumers
Electronic commerce enables customers to shop or do other transactions 24 hours a day,
all year round, from almost any location.

 Electronic commerce provides customers with more choices; they can select. Electronic
commerce frequently provides customers with less expensive products and services by
allowing them to shop in many places and conduct quick comparisons.
In some cases, especially with digitized products, EC allows quick delivery.
Customers can receive relevant and detailed information in seconds, rather than days or
weeks.
Electronic commerce makes it possible to participate in virtual auctions.
Electronic commerce allows customers to interact with other customers in electronic
communities and exchange ideas as well as compare experiences.
Electronic commerce facilitates competition, which results in substantial discounts.
Benefits to Society
Electronic commerce enables more individuals to work at home and to do less travelling
for shopping, resulting in less traffic on the roads and lower air pollution.
Electronic commerce allows some merchandise to be sold at lower prices, so less
affluent people can buy more and increase their standard of living.
Electronic commerce enables people in Third World countries and rural areas to enjoy
products and services that otherwise are not available to them.
Electronic commerce facilitates delivery of public services, such as health care,
education, and distribution of government social services at a reduced cost and/or
improved quality. Health-care services, for example, can reach patients in rural areas.
Disadvantages:
Some business processes such as perishable foods and high-cost, unique items such as
custom-designed jewelry might be impossible to inspect adequately from a remote
location.
Costs, which are a function of technology, can change dramatically even during shortlived electronic commerce implementation projects because the technologies are
changing so rapidly.
Many firms have trouble recruiting and retaining employees with the technological,
design and business process skills needed to create an effective electronic commerce
presence.
Firms facing difficulty of integrating existing databases and transaction processing
software designed for traditional commerce into the software that enables electronic
commerce.
Companies that offer software design and consulting services to tie existing systems
into new online business systems can be expensive.
Consumers are fearful of sending their credit card numbers over the Internet and having
online merchants. Consumers are simply resistant to change and are uncomfortable
viewing merchandise on a computer screen rather than in person.

FEATURES OF E COMMERCE
Given below are 10 unique features of ecommerce technology
1.
Breaks geographical barrier: Unlike traditional retail business, ecommerce is not
bounded by geographical barriers. Today an e commerce company can easily sell its
products to consumers residing in any part of the country.
2.
Saves precious time: Ecommerce helps in saving the most important thing in todays
modern world: Time. Consumers from the comfort of their home, office and even caf can
buy any product they wish to buy. Thanks to e commerce, consumers save lot of precious
time that is otherwise wasted if they opt for traditional shopping.
3.
Accurate information: Today e commerce companies across the world are doling out
product informations that are accurate & to the point, which eventually helps consumers to
make better buying decision. These informations are free from all the inaccuracy & hidden
facts that are very much used by traditional retail models as their selling strategy. Besides,
e commerce companies also provide accurate information to customers about billing
payment & shipping.
4.
Ubiquity: Ubiquity means state of being everywhere at once. With unprecedented growth
in the sales of tablets & smart phones, laptops and other internet related gadgets, e
commerce companies literally follow their consumers wherever they go. E commerce
shopping can be done even when consumer is walking or jogging.
5.
Impersonal interaction: Since e commerce technology completely depends on internet
& web to reach to its customers, the interaction with consumers will always be impersonal
in nature; as in it is not face-to-face interaction.
6.
Customers are truly king in the e commerce world: Today every month literally
hundreds of e commerce companies are popping up in every corner of the world. This
intense among E commerce companies is only befitting customers, who today have more
choices to choose from and discount vouchers to avail for instance Littlewoods Voucher
Codes.
7.
Power of accessibility: Since today e commerce is so easily accessible by the virtue of
power of internet, consumers can buy anything & everything as and when they desire for.
In fact a mere impulsive desire or slight craving for a product can lead to expensive
shopping, this is all thanks to accessibility to shopping that is possible only via e commerce
technology.
8.
Cuts supply chain: E commerce technology has immensely helped in cutting the
cumbersome supply chain of wholesale & retail and also overreliance on sales force team.
This only helps in reducing the cost of the product, which eventually benefits the customer.
9.
Ever changing nature of business: Since today technology is changing at lightening
speed by every passing day, the nature of e commerce business will also change along
with it. Who knows technology development in coming years will make e commerce more
customer friendly, or there can be other fundamental changes to the e commerce business
too.

10.

Technology can equally be barrier: Technology has helped e commerce companies to

break geographical & other barriers. However overreliance on technology & complete
absence of face to face interaction has created immense trust barrier between e commerce
companies and customers. This is especially true in the case of conservative country like
India where even today people dont completely trust e commerce companies, especially
when it comes to on line payment.

TYPES OF INTERNET BANKING OR E-BANKING

Understanding the various types of Internet banking will help examiners assess the risks
involved. Currently, the following three basic kinds of Internet banking are being
employed in the marketplace.
Informational
This is the basic level of Internet banking. Typically, the bank has marketing information
about the banks products and services on a stand-alone server. The risk is relatively low,
as informational systems typically have no path between the server and the banks
internal network. This level of Internet banking can be provided by the banks or
outsourced. While the risk to a bank is relatively low, the server or web site may be
vulnerable to alteration. Appropriate controls therefore must be in place to prevent
unauthorized alterations to the banks server or web site.
Communicative
This type of Internet banking systems is the interaction between the banks system and
the customer. The interaction may be limited to electronic mail, account enquiry, loan
applications, or static file updates (name and address change). Because these servers may
have a path to the banks internal networks, the risk is higher with this configuration than
with informational systems. Appropriate controls need to be in the place to prevent,
monitor, and alert management of any unauthorized attempt to access the banks internal
networks and computer systems. Virus controls also become much more critical in this
environment.
Transactional
This level of Internet banking allows customers to execute transactions. Since a path
typically exists between the server and the bank or outsourcers internal network, this is
the highest risk architecture and must have the strongest controls. Customer transactions
can include accessing accounts, paying bills, transferring funds etc.
ADVANTAGES OF INTERNET BANKING
Convenience- Unlike your corner bank, online banking sites never close; theyre
available 24 hours a day, seven days a week, and theyre only a mouse click away.
Ubiquity- If youre out of state or even out of the country when a money problem
arises, you can log on instantly to your online bank and take care of business, 24\7.
Transaction speed- Online bank sites generally execute and confirm transactions at or
quicker than ATM processing speeds.
Efficiency-You can access and manage all of your bank accounts, including IRAs, CDs,
even securities, from one secure site.

 Effectiveness- Many online banking sites now offer sophisticated tools, including
account aggregation, stock quotes, rate alert and portfolio managing program to help you
manage all of your assets more effectively. Most are also compatible with money
managing programs such as quicken and Microsoft money.
DISADVANTAGES OF INTERNET BANKING
Start-up may take time-In order to register for your banks online program, you will
probably have to provide ID and sign a form at a bank branch. If you and your spouse
wish to view and manage their assets together online, one of you may have to sign a
durable power of attorney before the bank will display all of your holdings together.
Learning curves- Banking sites can be difficult to navigate at first. Plan to invest some
time and\or read the tutorials in order to become comfortable in your virtual lobby.
Bank site changes- Even the largest banks periodically upgrade their online programs,
adding new features in unfamiliar places. In some cases, you may have to re-enter
account information.

Information technology Act 2000 consisted of 94 sections

segregated into 13 chapters. Four schedules form part of the Act. In the 2008 version of the
Act, there are 124 sections (excluding 5 sections that have been omitted from the earlier
version) and 14 chapters. Schedule I and II have been replaced. Schedules III and IV are
deleted.
Information Technology Act 2000 addressed the following issues:
1. Legal recognition of electronic documents
2. Legal Recognition of digital signatures
3. Offenses and contraventions
4. Justice dispensation systems for cybercrimes
According to Sction 10A of information technology Act,2000(amended in 2008)it also
validates E-contracts.

Offences
Section

65

Offence

Punishment

Tampering with computer source documents - Intentional

Imprisonment up to

concealment, destruction or alteration of source code when

three years, or/and

the computer source code is required to be kept or

with fine up to 2 lakh

maintained by law for the time being in force

rupees

Imprisonment up to
66

Hacking

three years, or/and

with fine up to 5 lakh
rupees

Sending offensive message through electronic means Sending any information through an electronic message that
is grossly offensive or has menacing character and might
66-A

Imprisonment up to

cause insult, injury, criminal intimidation, enmity, hatred, or ill three years, and with
will, etc. or sending such mail intended to deceive or to

fine.

mislead the addressee or recipient about the origin of such

messages

Different types of e-commerce

The major different types of e-commerce are: business-to-business (B2B); business-toconsumer (B2C); business-to-government (B2G); consumer-to-consumer (C2C); and
mobile commerce (m-commerce).
B2B - Business to Business
E-commerce has been in use for quite a few years and is more commonly known as EDI
(electronic data interchange). In the past EDI was conducted on a direct link of some
form between the two businesses where as today the most popular connection is the
internet. The two businesses pass information electronically to each other. B2B ecommerce currently makes up about 94% of all e-commerce transactions. Typically in the
B2B environment, E-Commerce can be used in the following processes:
Procurement;
order fulfillment;
Managing trading-partner relationships.
B2C - Business to Consumer
Business to Consumer e-commerce is relatively new. This is where the consumer
accesses the system of the supplier. It is still a two way function but is usually done solely
through the Internet. B2C can also relate to receiving information such as share prices,
insurance quotes, on-line newspapers, or weather forecasts. The supplier may be an
existing retail outlet such as a high street store; it has been this type of business that has
been successful in using E-Commerce to deliver services to customers. These businesses
may have been slow in gearing-up for E-Commerce compared to the innovative dot.com
start ups, but they usually have a sound commercial structure as well as in-depth

experience of running a business - something which many dotcoms lacked, causing many
to fail.
C2B - Consumer to Business
Consumer to Business is a growing arena where the consumer requests a specific service
from the business. Example: Harry is planning a holiday in Darwin. He requires a flight
in the first week of December and is only willing to pay Rs. 250. Harry places a
submission with in a web based C2B facility. Dodgy Brothers Airways accesses the
facility and sees Harrys submission. Due to it being a slow period, the airline offers
Harry a return fare for Rs. 250.
B2E - Business to Employee
Business to Employee e-commerce is growing in use. This form of E-commerce is more
commonly known as an Intranet. An intranet is a web site developed to provide
employees of an organisation with information. The intranet is usually access through the
organisations network, it can and is often extended to an Entrant which uses the Internet
but restricts uses by sign on and password.
C2C - Consumer to Consumer
These sites are usually some form of an auction site. The consumer lists items for sale
with a commercial auction site. Other consumers access the site and place bids on the
items. The site then provides a connection between the seller and buyer to complete the
transaction. The site provider usually charges a transaction cost. In reality this site should
be call C2B2C.
B2G e-commerce
Business-to-government e-commerce or B2G is generally defined as commerce between
companies and the public sector. It refers to the use of the Internet for public
procurement, licensing procedures, and other government-related operations. This kind of
e-commerce has two features: first, the public sector assumes a pilot/leading role in
establishing e-commerce; and second, it is assumed that the public sector has the greatest
need for making its procurement system more effective.
C2B E-Commerce
C2B or Consumer to Business transactions involves reverse auctions, which empower the
consumer to drive transactions. A concrete example of this when competing airlines gives
a traveler best travel and ticket offers in response to the travelers post that she wants to
fly from New York to San Francisco. There is little information on the relative size of
global C2C e-commerce. However, C2C figures of popular C2C sites such as eBay and
Napster indicate that this market is quite large. These sites produce millions of dollars in
sales every day.
M-commerce
M-commerce (mobile commerce) is the buying and selling of goods and services through
wireless technology-i.e., handheld devices such as cellular telephones and personal

digital assistants (PDAs). Japan is seen as a global leader in m-commerce. As content

delivery over wireless devices becomes faster, more secure, and scalable, some believe
that m-commerce will surpass wireline e-commerce as the method of choice for digital
commerce transactions. This may well be true for the Asia-Pacific where there are more
mobile phone users than there are Internet users.

Cyber crime encompasses any criminal act dealing with computers and
networks (called hacking). Additionally, cyber crime also includes traditional crimes
conducted through the Internet. For example; hate crimes, telemarketing and Internet
fraud, identity theft, and credit card account thefts are considered to be cyber crimes
when the illegal activities are committed through the use of a computer and the Internet.

REASONS FOR CYBER CRIME

Hart in his work The Concept of Law has said human beings are vulnerable so rule of
law is required to protect them. Applying this to the cyberspace we may say that
computers are vulnerable so rule of law is required to protect and safeguard them against
cyber crime. The reasons for the vulnerability of computers may be said to be:
Capacity to store data in comparatively small spaceThe computer has unique characteristic of storing data in a very small space. This affords
to remove or derive information either through physical or virtual medium makes it much
more easier.
Easy to accessThe problem encountered in guarding a computer system from unauthorised access is that
there is every possibility of breach not due to human error but due to the complex
technology. By secretly implanted logic bomb, key loggers that can steal access codes,
advanced voice recorders; retina imagers etc. that can fool biometric systems and bypass
firewalls can be utilized to get past many a security system.
3.ComplexThe computers work on operating systems and these operating systems in turn are
composed of millions of codes. Human mind is fallible and it is not possible that there
might not be a lapse at any stage. The cyber criminals take advantage of these lacunas
and penetrate into the computer system.
4.NegligenceNegligence is very closely connected with human conduct. It is therefore very probable
that while protecting the computer system there might be any negligence, which in turn
provides a cyber criminal to gain access and control over the computer system.

5. Loss of evidenceLoss of evidence is a very common & obvious problem as all the data are routinely
destroyed. Further collection of data outside the territorial extent also paralyses this
system of crime investigation.

Business process reengineering (BPR) is the

analysis and redesign of workflows within and between enterprises in order to optimize
end-to-end processes and automate non-value-added tasks.
The concept of BPR was first introduced in the late Michael Hammer's 1990 Harvard
Business Review article and received increased attention a few years later, when Hammer
and James Champy published their best-selling book, Reengineering the Corporation.
The authors promoted the idea that sometimes-radical redesign and reorganization of an
enterprise is necessary to lower costs and increase quality of service and that information
technology is the key enabler for that radical change.
Hammer and Champy suggested seven reengineering principles to streamline the work
process and thereby achieve significant levels of improvement in quality, time
management, speed and profitability:
1. Organize around outcomes, not tasks.
2. Identify all the processes in an organization and prioritize them in order of redesign
urgency.
3. Integrate information processing work into the real work that produces the information.
4. Treat geographically dispersed resources as though they were centralized.
5. Link parallel activities in the workflow instead of just integrating their results.
6. Put the decision point where the work is performed, and build control into the process.
7. Capture information once and at the source.

Firewalls
A firewall is a device or set of devices designed to permit or deny network transmissions
based upon a set of rules and is frequently used to protect networks from unauthorized
access while permitting legitimate communications to pass.
A Firewall is a security system that adds a level of protection between your computer and
the internet. Firewall helps to prevent viruses and worms to enter into your computer. If
one of the computers is infected, firewall on each computer help to prevent the spread of
virus in a network

Many personal computer operating systems include software-based firewalls to protect

against threats from the public Internet. Many routers that pass data between networks
contain firewall components and, conversely, many firewalls can perform basic routing
functions.
Types of Firewalls
There are different types of firewalls depending on where the communication is taking
place, where the communication is intercepted and the state that is being traced.
Network layer and packet filters
Network layer firewalls, also called packet filters, operate at a relatively low level of the
TCP/IP protocol stack, not allowing packets to pass through the firewall unless they
match the established rule set. The firewall administrator may define the rules; or default
rules may apply. The term "packet filter" originated in the context of BSD operating
systems.
Stateless firewalls require less memory, and can be faster for simple filters that require
less time to filter than to look up a session. They may also be necessary for filtering
stateless network protocols that have no concept of a session. However, they cannot make
more complex decisions based on what stage communications between hosts have
reached.
Modern firewalls can filter traffic based on many packet attributes like source IP address,
source port, destination IP address or port, destination service like WWW or FTP. They
can filter based on protocols, TTL values, netblock of originator, of the source, and many
other attributes.
Application-layer
Application-layer firewalls work on the application level of the TCP/IP stack (i.e., all
browser traffic, or all telnet or ftp traffic), and may intercept all packets traveling to or
from an application. They block other packets (usually dropping them without
acknowledgment to the sender). In principle, application firewalls can prevent all
unwanted outside traffic from reaching protected machines.
On inspecting all packets for improper content, firewalls can restrict or prevent outright
the spread of networked computer worms and trojans. The additional inspection criteria
can add extra latency to the forwarding of packets to their destination.
Application firewalls function by determining whether a process should accept any given
connection. Application firewalls accomplish their function by hooking into socket calls
to filter the connections between the application layer and the lower layers of the OSI
model. Application firewalls that hook into socket calls are also referred to as socket
filters. Application firewalls work much like a packet filter but application filters apply
filtering rules (allow/block) on a per process basis instead of filtering connections on a
per port basis. Generally, prompts are used to define rules for processes that have not yet

received a connection. It is rare to find application firewalls not combined or used in

conjunction with a packet filter.
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