Question Paper E-Business (MB3H1IT): January 2009

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Section A : Basic Concepts (30 Marks)

This section consists of questions with serial number 1 - 30. Answer all questions. Each question carries one mark. Maximum time for answering Section A is 30 Minutes. <Answer>

1.

In E-buying, various steps are to be carried. Which of the following represents the correct sequence of steps? I. Provide e-catalog. II. Determine price. III. Configure solution. IV. Check inventory. V. Accept order. VI. Order tracking. VII. Process order. VIII. Payment. (a) (b) (c) (d) (e) I-II-III-IV-V-VI-VII-VIII I-III-II-IV-V-VII-VI-VIII I-III-II-V-IV-VII-VI-VIII I-II-III-V-IV-VII-VI-VIII I-III-II-V-IV-VI-VII-VIII.

2.

When designing a website for selling goods and services, a seller should ensure that the site contains various components. Which of the following component is a special-purpose software that enables users to define a product that meet their needs, access information about products, compare prices and purchase them without the assistance of experienced personnel? (a) (b) (c) (d) (e) Bundling Entrust Configurator Tapping Tying.

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3.

Suppliers may be classified into various categories depending on the type of components they supply. Which of the following does not come under the classification? (a) (b) (c) (d) (e) Suppliers of scarce products Suppliers of strategic products Suppliers of non-strategic products Suppliers of commodity products Suppliers of integration products.

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4.

Which of the following is/are true about Internet Protocol Version4 (IPV4) and Internet Protocol Version6 (IPV6)? I. IPV4 uses 16-bit addresses. II. IPV6 uses 32-bit addresses. III. IPV6 uses hexadecimal system for denoting the address. (a) (b) (c) (d) (e) Only (I) above Only (III) above Both (I) and (II) above Both (II) and (III) above All (I), (II) and (III) above.

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5.

Transferring a business into an e-business model requires the formulation of a strategy and framework for applying the strategy. The formulation of an e-business strategy includes I. Knowledge building. II. Capability evaluation. III. E-business design. (a) (b) (c) (d) (e) Only (I) above Both (I) and (II) above Both (I) and (III) above Both (II) and (III) above All (I), (II) and (III) above.

<Answer>

6.

Partnerships are essential because no company can perform well in all areas of businesses. The primary requirements for developing a partnership plan for an e-marketplace are I. II. III. IV. (a) (b) (c) (d) (e) Defining the e-value chain requirements of business and customers. Identifying the partnership candidates. Determining the degree of ownership that the company is willing to forego. Defining a non preemptive strike strategy. Both (I) and (II) above (I), (II) and (III) above (I), (II) and (IV) above (II), (III) and (IV) above All (I), (II), (III) and (IV) above.

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7.

Each area of Operating Resources Management (ORM) and the requirements of employees, buyers and suppliers should be considered in the design of e-procurement application. The integration of e-procurement is complete, when Suppliers are able to achieve cost efficiency and speedy delivery. Professional purchasers are able to control purchase processes in the organization, manage effective supplier relations, reduce costs and increase efficiency. III. Employees find it convenient and easy to use. (a) (b) (c) (d) (e) Only (I) above Both (I) and (II) above Both (I) and (III) above Both (II) and (III) above All (I), (II) and (III) above. I. II.

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8.

Which of the following statements are true about supply chain management? Supply chain management is a set of processes which helps organizations develop and deliver products. II. Supply chain management can help companies integrate their customers, suppliers and channel partners. III. Supply chain management also involves the integration of adhoc and fragmented processes into a consolidated system. IV. Supply chain links all the activities only in procurement. (a) (b) (c) (d) (e) Both (I) and (II) above Both (III) and (IV) above (I), (II) and (III) above (II), (III) and (IV) above All (I), (II), (III) and (IV) above. I.

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9.

Both first and second generation Sales Force Automation (SFA) tools met with little success for the reasons that The SFA tools were flexible and had unlimited capabilities. The sales procedures differed from organization to organization but the SFA tools could not be customized to suit their needs. III. The SFA tools brought about changes only in enterprise systems. (a) (b) (c) (d) (e) Only (I) above Only (II) above Both (I) and (II) above Both (II) and (III) above All (I), (II) and (III) above. I. II.

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10.

Which of the following statements is/are true about Selling-chain applications? Selling-chain applications emphasize an integrated approach to sales management. Selling-chain applications take only on integrated approach of the sales and marketing operations. III. Selling-chain applications may be considered as tools to streamline the integrated set of activities in order to acquire and fulfill orders. (a) (b) (c) (d) (e) Only (I) above Only (II) above Both (I) and (III) above Both (II) and (III) above All (I), (II) and (III) above. I. II.

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11.

Which of the following statements is/are true about various types of cryptographic algorithms? Symmetric key cryptography uses the same key for encrypting and decrypting the messages. II. Symmetric key cryptography is also known as private key cryptography. III. Public key cryptography uses a set of two complementary keys for encryption and decryption. (a) (b) (c) (d) (e) Only (I) above Only (II) above Both (I) and (II) above Both (II) and (III) above All (I), (II) and (III) above. I.

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12.

There are various types of business integration that is prerequisite for an efficient e-CRM infrastructure. Which of the following is/are false about contact management? Contact management refers to capturing, sharing and storing of customer information through electronic means and making it accessible to the entire organization. II. Contact management opens up only few opportunities for customer interaction for similar kind of departments in an organization. III. Contact management ensures the availability of current information on customers. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (II) above Both (II) and (III) above. I.

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13.

Which of the following statements is/are true about Direct Attached Storage (DAS)? I. DAS manage storage using network operating systems. II. DAS are scalable. III. DAS have much dependence on network bandwidth. (a) (b) (c) (d) (e) Only (I) above Both (I) and (II) above Both (I) and (III) above Both (II) and (III) above All (I), (II) and (III) above.

<Answer>

14.

Wireless Application Protocol (WAP) standard is based on Internet standards like I. HyperText Markup Language (HTML). II. Extensible Markup language (XML). III. Transmission Control Protocol/Internet Protocol (TCP/IP). (a) (b) (c) (d) (e) Only (I) above Both (I) and (II) above Both (I) and (III) above Both (II) and (III) above All (I), (II) and (III) above.

<Answer>

15.

The evolution of wireless telephony over the years can be examined in terms of various generations. Which of the following is/are true about various generations? First generation (1G) of wireless telephony was a voice service only, which used analog signaling. II. Second generation (2G) wireless telephony was also essentially a voice technology but used digital technology. It is faster due to the circuit switch-on and off. III. 2.5 generation (2.5G) is an intermediate between 2G and 3G and uses General Packet Radio Service (GPRS). (a) (b) (c) (d) (e) Only (I) above Only (II) above Both (I) and (II) above Both (I) and (III) above All (I), (II) and (III) above. I.

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16.

Data stored on mobile devices can be protected by Maintaining confidentiality by using third-party solutions to authenticate and encrypt products. II. Encrypting critical information. III. Using built-in password functionality for authentication. I. (a) (b) (c) (d) (e) Only (I) above Only (II) above Both (I) and (II) above Both (II) and (III) above All (I), (II) and (III) above.

<Answer>

17.

Which of the following statements is/are true about the benefits of Mobile Portals? I. They allow direct contact with buyers. II. They help in identifying customer needs. III. They do not form a link between suppliers and customers. (a) (b) (c) (d) (e) Only (I) above Only (II) above Both (I) and (II) above Both (I) and (III) above All (I), (II) and (III) above.

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18.

Under section 802(a)(i) of the Sarbanes-Oxley Act, organizations are required to store all records related to an audit for at least (a) (b) (c) (d) (e) Five years One year Two years Three years Four years.

<Answer>

19.

Which of the following statements is/are true about E-finance? E-finance considers organizational processes as interrelated activities. The efforts of e-finance are primarily to do away with activities that provide value addition. III. The automated approach followed by e-finance helps organizations make transaction processing quicker and devoid of errors. (a) (b) (c) (d) (e) Only (I) above Only (II) above Both (I) and (II) above Both (I) and (III) above Both (II) and (III) above. I. II.

<Answer>

20.

The protocols used by Stored Account Payment System include First Virtual (FV), CyberCash Secure Internet Payment System and Secure Electronic Transaction (SET). Which of the following statements is/are false about the protocol First Virtual (FV)? I. FV introduced in October 1994, is the first commercial transaction payment system. II. FV uses cryptography or encryption technology to secure transactions. III. A transaction using FV is complex. (a) (b) (c) (d) (e) Only (I) above Only (II) above Both (I) and (III) above Both (II) and (III) above All (I), (II) and (III) above.

<Answer>

21.

Which of the following petroleum company launched Indias first retail & loyalty card for petroleum application with smart card capabilities known as petrocard? (a) (b) (c) (d) (e) Bharat Petroleum Indian Oil Hindustan Petroleum Indo Burma petroleum Reliance Petroleum.

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22.

Increase in the popularity of e-businesses has attracted many businesses to adopt it. Ebusiness has helped in evolving different business models. Which of the following model is based on metering the actual usage of a service? (a) (b) (c) (d) (e) Advertising model Brokerage model Utility model Merchant model Community model.

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23.

Public key Infrastructure (PKI) ensures security of communication and transfer of critical information through internet. PKI improves the enterprise wide network security architecture by integrating I. II. III. IV. (a) (b) (c) (d) (e) Public key cryptography. Digital certificates. Certification authorities. Virtual private networks. Both (I) and (II) above Both (I) and (III) above Both (I) and (IV) above (I), (II) and (III) above All (I), (II), (III) and (IV) above.

<Answer>

24.

Which of the following statements are true about computer virus? I. A virus is a program that replicates itself on a system and spreads through networks. II. The virus replicates and infects the system as many times as the code is executed. III. Viruses are encrypted in a complex code by virus writers to avoid being decoded easily. IV. Virus does not reside in a disk which contains certain codes that need to be executed whenever the disk is booted. (a) (b) (c) (d) (e) Both (I) and (II) above Both (I) and (III) above Both (I) and (IV) above (I), (II) and (III) above All (I), (II), (III) and (IV) above.

<Answer>

25.

Digital certificates can be broadly categorized into various types. Which of the following statements is/are true about them? I. Type2 authenticate only e-mail and are not legally recognized in India. II. Type1 authenticate e-mail, name and identity. III. Type3 are used to authenticate e-mail, name and identity and are globally interoperable. (a) (b) (c) (d) (e) Only (I) above Only (III) above Both (I) and (II) above Both (II) and (III) above All (I), (II) and (III) above.

<Answer>

26.

Smart cards use a special type of memory namely (a) (b) (c) (d) (e) Electronically Erasable Read Only Memory (EEROM) Erasable Programmable Read Only Memory (EPROM) Programmable Read Only Memory (PROM) Read Only Memory (ROM) Magnetic Coated Memory.

<Answer>

27.

Which of the following statements is/are false about General Packet Radio Service (GPRS)? GPRS is a non-voice value-added service that allows information to be sent and received across a mobile telephone network. II. GPRS does not uses a packet-mode technique to transfer high-speed and low speed data and optimizes the use of network and radio resources. III. In GPRS, the radio interface resources are shared between speech and data services depending upon the service load and operator preferences. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (III) above Both (II) and (III) above. Page 6 of 19 I.

<Answer>

28.

Which of the following statements is/are false about i-mode technology? I. i-mode technology offers web browsing and e-mail access through mobile phones. II. i-mode technology was introduced in Japan in 1999 by NTT DoCoMo. III. In i-mode technology data from the Internet is transmitted through DoCoMos Internet gateway to a handset in packets containing 128 bytes of information. IV. i-mode browsing is costlier than Wireless Application Protocol (WAP) browsing. (a) (b) (c) (d) (e) Only (I) above Only (IV) above Both (I) and (III) above Both (II) and (III) above Both (III) and (IV) above.

<Answer>

29.

Which of the following statements are true about Middleware? Middleware can be described as software which connects two separate applications. Middleware is a distributed software layer which provides consistent and integrated distributed programming environment. III. Different programming models are supported by different middleware programs. IV. The most popular programming model is the event based middleware. (a) (b) (c) (d) (e) Both (I) and (II) above Both (I) and (III) above Both (I) and (IV) above (I), (II) and (III) above All (I), (II), (III) and (IV) above. I. II.

<Answer>

30.

Wherever the inventory level fall below the predetermined levels, the machines automatically place the order and replenish the stock. Which of the following statements is/are true about Auto-replenishment system? Auto-replenishment systems enable manufacturers to schedule their workflow, minimize rush orders and shipment delays. II. The Auto-replenishment systems work effectively when the optimal reorder points are determined effectively. III. The organizations using Auto-replenishment system will not have sufficient leadtime. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (II) above All (I), (II) and (III) above. END OF SECTION A I.

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E.Business (MB3H1IT): January 2009

Section B : Caselets (50 Marks)
This section consists of questions with serial number 1 7. Answer all questions. Marks are indicated against each question. Detailed explanations should form part of your answer. Do not spend more than 110 - 120 minutes on Section B.

Caselet 1
Read the caselet carefully and answer the following questions:
<Answer> 1. Mention the various e-business initiatives taken by Escorts India Ltd., a leading two wheeler manufacturing company. ( 3 marks)

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<Answer> 2. B2B websites help streamline operations between organizations and their business partners. In this context, explain the benefits offered by B2B marketplaces. ( 5 marks) <Answer> 3. Explain the principles that can be followed by the companies to develop an organizational culture which is for conducting e-business. ( 10 marks)

The Motor cycle manufacturing unit of Escorts India Ltd., was awarded Germanys prestigious GilzerMann award in 2001. It was the fifth company outside Germany and the first 2-Wheeler company in the world to have been awarded the GilzerMann award. Escort India Ltd., started the computerization move in the mid 90s and the ebusiness initiatives, which started in late 90 have, seemed to have played a major role in increasing the 2-wheeler Vehicle sales. Escorts India Ltd., launched its e-business initiatives in 1999 which involved both B2B and product-focused sites. The B2B site helped Escorts India Ltd., to do business online with its suppliers and dealers of Motor cycles and Scooters. The top management led all e-business initiatives and they understood that the support of its employees is essential for changing the organizational culture and sustaining the change brought about by e-business, so they designed rewards and incentives that align with e-business goals. Its suppliers centric site enabled it to send orders and receive raw materials faster. The other sites created to do business with the dealers of utility vehicles and farm equipments respectively, made it easier and faster for Escorts India Ltd., to get orders from the dealers and to know about the status of sales at each dealers outlet. These sites were aimed at making customers to know more about the outstanding features of Bikes as well as Scooter products and consequently increase their sales. Escorts India Ltd., also used Customer Relationship Management (CRM) as a data-mining tool. CRM helped Escorts to know about the problems in the existing products, if any, and develop new products with the help of information collected from the customers about the 2-wheeler vehicles performance. END OF CASELET 1

Caselet 2
Read the caselet carefully and answer the following questions:
<Answer> 4. The UK government targeted for the number of micro enterprises, and small and medium sized enterprises becoming wired up to the digital marketplace. The targets were specified in terms of the adoption of key e-business technologies like external e-mail, websites and Electronic Data Interchange (EDI). In this context, explain the benefits of EDI. ( 8 marks) <Answer> 5. What you think are the common selection factors while choosing Electronic Data Interchange (EDI) software? ( 4 marks)

The UK governments 1998 white paper Our Competitive Future Building the Knowledge Driven Economy set targets for the number of micro enterprises, and Small and Medium Sized Enterprises (SMEs) becoming wired up to the digital marketplace. The targets were specified in terms of the adoption of key e-business technologies. Taking into account the current range of available technologies, this was interpreted as the adoption and use of external e-mail, websites and Electronic Data Interchange (EDI). Numerically, the target set was for adoption of these underpinning technologies by 1 million micro enterprises and SMEs by the year 2002. When the white paper was published, an estimated 350,000 micro enterprises and SMEs possessed these technologies. In 2001 some 1.9 million micro enterprises and SMEs had either adopted e-mail, or EDI system or set up a website. Still, UK SMEs are only beginning to experiment with new e-business solutions. While 70% of small firms in the UK have some form of internet access, this remains limited to the exchange of e-mails or a static company website. Very few UK SMEs Page 8 of 19

firms use the internet as a fully interactive e-commerce platform. Usage remains confined to the provision of product information and to generic intra and inter-firm communication. According to sector studies conducted by the Office for National Statistics (ONS) nearly 57 billion of goods and services were sold over the internet in 2000. Putting this into perspective, this represents 2% of total sales in these sectors. The UK experience is inline with the trends in other countries. Indeed it has been suggested that in terms of online trading, the UK ranks highest along with Canada amongst the G7 countries. Inter-firm electronic information flows remain centered on traditional proprietary networking technologies, such as EDI via direct lines and Value Added Network (VAN) applications. At the national level, UK enterprises are amongst those most likely to have both Local Area Networks (LAN) and Wide Area Networks (WAN). Indeed the pattern of internal e-mail adoption was found to be closely correlated with that of LANs. However the reported incidence of UK enterprises with internet access, websites, external e-mail, EDI and online selling do not compare favorably with competitors in Canada, USA and Germany. END OF CASELET 2

Caselet 3
Read the caselet carefully and answer the following questions:
<Answer> 6. As the business environment has become fiercely competitive, companies are trying hard to stay ahead by reducing the product development cycle time and bringing out new products faster. For this to happen, what are the elements considered by Dell in planning operation? ( 10 marks) <Answer> 7. Execution in the supply chain needs to be based on all available information details at every stage. If you are the operations manager of Dell, what would you suggest about supply chain execution process? ( 10 marks)

The Computer manufacturing company, Dell has been following its unique direct build-to-order sales model for more than 20 years. Customers can plan their own configuration and place orders directly with the company via the phone or its Web site. Over the years, Dells supply chain efficiencies and direct sales gave it a competitive advantage. In 2006 however, Dell faced several problems. Many customers complained about long delays in supplies. Recall of Sony battery cells in its laptops brought undesirable media hype to the company. Increasing discontent of customers led to a slowdown in sales. Consequently, Dell lost its market leadership to Hewlett-Packard Co. (HP). Industry analysts felt that, with Dell's competitors also improving their supply chains and matching Dell's direct model, the company had been losing its competitive edge. Dell will have to bear additional costs with its foray into retail distribution thereby minimizing its cost advantage. Besides, profit margins of Dell will drop further since it will have to offer incentives to compete with HP in retail stores. Though Dell spruced up its product design and range but Apple is clearly far ahead of it. Many experts feel that such new initiatives will only distract Dell from its supply chain operations. END OF CASELET 3 END OF SECTION B

Section C : Applied Theory (20 Marks)

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 8. 9.

This section consists of questions with serial number 8 - 9. Answer all questions. Marks are indicated against each question. Do not spend more than 25 -30 minutes on Section C.

<Answer> Discuss the major functions of each component in mobile value chain with a neat diagram. ( 10 marks) <Answer> Explain the various components which are essential while implementing Customer Relationship Management (CRM). ( 10 marks)

END OF SECTION C END OF QUESTION PAPER

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Suggested Answers E-Business (MB3H1IT): January 2009

Section A: Basic Concepts
Answer 1. C Reason
< TOP > In e-buying, various steps are to be carried. Hence the correct sequence of steps is Provide e-catalog Configure solution Determine price Accept order Check inventory process order Order tracking Payment.

2.

Configurator component is special-purpose software that enables users to define a < TOP > product that meet their needs, access information about products, compare prices and purchase them without the assistance of experienced personnel. Suppliers of integration products do not come under the classification depending on < TOP > the type of components they supply. IPV6 uses hexadecimal system for denoting the address.
< TOP >

3. 4. 5.

E B E

Transferring a business into an e-business model requires the formulation of a < TOP > strategy and framework for applying the strategy. The formulation of an e-business strategy includes I. Knowledge building. II. Capability evaluation. III. E-business design. Partnerships are essential because no company can perform well in all areas of < TOP > businesses. The primary requirements for developing a partnership plan for an emarketplace are I. Defining the e-value chain requirements of business and customers. II. Identifying the partnership candidates. III. Determining the degree of ownership that the company is willing to forego. IV. Defining a preemptive strike strategy. Suppliers are able to achieve cost efficiency and speedy delivery.
< TOP >

6.

7.

8. C

Professional purchasers are able to control purchase processes in the organization, manage effective supplier relations, reduce costs and increase efficiency. Employees find it convenient and easy to use.

Supply Chain Management (SCM) is a set of processes which helps organizations < TOP > develop and deliver products.SCM can help companies integrate their customers, suppliers and channel partners.SCM also involves the integration of adhoc and fragmented processes into a consolidated system. Supply chain links all the activities in procurement, transformation and storage of raw materials and intermediate products and the sale of finished goods. The sales procedures differed from organization to organization but the sales force < TOP > automation (SFA) tools could not be customized to suit their needs. The SFA tools brought about changes only in enterprise systems. Selling-chain applications emphasize an integrated approach to sales management. < TOP > Selling-chain applications may be considered as tools to streamline the integrated set of activities in order to acquire and fulfill orders. Selling-chain applications take an integrated approach of the sales and marketing operations and the order equisition process.

9.

10.

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11.

Symmetric key cryptography uses the same key for encrypting and decrypting the < TOP > messages. Symmetric key cryptography is also known as private key cryptography. Public key cryptography uses a set of two complementary keys for encryption and decryption. Contact management opens up several opportunities for customer interaction for < TOP > different departments in an organization. Contact management refers to capturing, sharing and storing of customer information through electronic means and making it accessible to the entire organization. Contact management ensures the availability of current information on customers. Direct Attached Storage (DAS) manage storage using network operating systems. < TOP > DAS are scalable. DAS do not have much dependence on network bandwidth. Wireless Application protocol (WAP) standard is based on Internet standards like < TOP > Hypertext markup language (HTML), Extensible Markup language (XML) and Transmission Control Protocol/Internet Protocol (TCP/IP). First generation (1G) of wireless telephony was a voice service only, which used < TOP > analog signaling.2.5 generation (2.5G), is an intermediate between 2G and 3G that uses General Packet Radio Service (GPRS). Second generation (2G) wireless telephony was also essentially a voice technology but used digital technology which is slower due to the circuit switch-on and off.
< TOP > Data stored on mobile devices can be protected by I. Maintaining confidentiality by using third-party solutions to authenticate and encrypt products. II. Encrypting critical information. III. Using built-in password functionality for authentication.

12.

13. 14.

B E

15.

16.

17.

Mobile portals allow direct contact with buyers. Mobile portals help in identifying < TOP > customer needs. Mobile portals form an important link between suppliers and customers. Under section 802(a)(i) of the Sarbanes-Oxley Act, organizations are required to store < TOP > all records related to an audit for at least five years. E-finance considers organizational processes as interrelated activities. The automated < TOP > approach followed by e-finance helps organizations make transaction processing quicker and devoid of errors. The efforts of E-finance are primarily to do away with activities that do not provide any value addition. First Virtual (FV) introduced in October 1994, is the first commercial transaction < TOP > payment system.FV does not use cryptography to secure transactions. A transaction using FV is very simple. Bharat Petroleum launched Indias first retail & loyalty card for petroleum application < TOP > with smart card capabilities known as petrocard. Examples of Brokerage models are eBay,escrow.com,bazee.com,priceline.com etc.
< TOP >

18. 19.

A D

20.

21. 22. 23.

A B D

Public key Infrastructure (PKI) ensures security of communication and transfer of < TOP > critical information through internet.PKI improves the enterprise wide network security architecture by integrating Public key cryptography, Digital certificates and Certification authorities. A virus is a program that replicates itself on a system and spreads through networks. < TOP > The virus replicates and infects the system as many times as the code is executed. Viruses are encrypted in a complex code by virus writers to avoid being decoded easily. Virus may reside in a disk which contains certain codes that need to be executed whenever the disk is booted.

24.

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25.

Digital certificates can be broadly categorized into three types: Type1: These authenticate only e-mail, and are not legally recognized in India as per the IT Act 2002.

< TOP >

Type2: These authenticate e-mail, name and identity and are legally recognized in India as per the IT Act 2002. Type3: These are used to authenticate e-mail, name and identity and are globally interoperable. These certificates are legally recognized in India as per IT Act 2002.

26. 27.

A B

Smart cards use a special type of memory namely Electrically Erasable Read Only < TOP > Memory (EEROM). General Packet Radio Service (GPRS) is a non-voice value-added service that allows < TOP > information to be sent and received across a mobile telephone network. GPRS uses a packet-mode technique to transfer high-speed and low speed data and optimizes the use of network and radio resources. In GPRS, the radio interface resources are shared between speech and data services depending upon the service load and operator preferences. i-Mode technology offers web browsing and e-mail access through mobile phones. i- < TOP > Mode technology was introduced in Japan in 1999 by NTT DoCoMo. In i-Mode technology data from the Internet is transmitted through DoCoMos Internet gateway to a handset in packets containing 128 bytes of information. i-mode browsing is cheaper than Wireless Application protocol (WAP) browsing. Middleware can be described as software which connects two separate applications. < TOP > Middleware is a distributed software layer which provides consistent and integrated distributed programming environment. Different programming models are supported by different middleware programs. The most popular programming model is the object based middleware. Auto-replenishment systems enable manufacturers to schedule their workflow, < TOP > minimize rush orders and shipment delays. The auto-replenishment systems work effectively when the optimal reorder points are determined effectively. The organizations using auto-replenishment system have sufficient lead-time.

28.

29.

30.

E.Business (MB3H1IT): January 2009

Section B : Caselets
1. E-business initiatives taken by Escorts India Ltd: Escorts India Ltd launched its E-Business initiatives in 1999. It involved both B2B and product-focused sites. The B2B site helped Escorts to do business online with its suppliers and dealers of 2- wheeler Vehicles. Its suppliers' centric site enabled it to send orders and receive raw materials faster. The sites esco2wheelmanu.com and urfavoritemobike.com, created to do business with the dealers of 2-WheelerVehicles that led to easier and faster for Escorts to get orders from the dealers and to know about the status of sales at each dealer's outlet. The sites were aimed at making customers aware of the features of Bikes and Scooters and consequently increase their sales. Escorts India Ltd also used Customer Relationship Management (CRM) as a data-mining tool. CRM helped M&M to know about the problems in the existing products, if any, and develop new products with the help of information collected from the customers about the 2- WheelerVehicles' performance. < TOP >

2.

B2B is the most popular e-business model dealing with B2B transactions. B2B marketplaces < TOP > evolved with the primary goal of matching buyers and sellers. Thus enabling the exchange of Page 13 of 19

gods and services. B2B websites help streamline operations between organizations and their business partners. B2B market places offer several benefits: Efficient management of inventory. Quick response to customer demand. Reduction in the cost of paperwork. Efficient and fast product launch.

Control over fraudulent purchases. B2B websites focus on providing solutions to various industries such as the banking, hospitality, and automotive industries. These are meant only for business organization: individuals are not allowed to carryout transactions over such sites. 3. ORGANIZATIONAL CULTURE FOR E-BUSINESS < TOP > In e-business, organizations need to continuously make efforts to enhance and leverage their business processes and technology to achieve the highest degree of customer satisfaction. Organizational culture plays an important role in maintaining this focus. The principles that must be followed to develop an organizational culture which is conducive for conducting ebusiness are discussed below: Ensure Commitment of Top Management Employees will not understand the importance of e-business unless top management emphasizes it. The top management should lead all e-business initiatives. Their support is essential for changing the organizational culture and sustaining the change brought about by e-business. Create Incentives that Support E-Business Goals One of the goals of an e-business strategy is to achieve maximum customer satisfaction that should finally lead to customer retention. An organization should design rewards and incentives that align with the e-business goals. Customer satisfaction should be the top priority in the organization. The sales force should emphasize customer retention instead of just focusing on customer acquisition. This may require revamping of the incentive schemes to suit the multi-channel strategy. Develop and Maintain a Bias for Action Short customer life cycles and the rapid pace of business growth make speed and agility key factors in the e-business environment. For fulfilling customer's demand of wider choice of products, superior quality service, and faster product delivery, businesses need to be highly agile. The four factors that will ensure e-business agility are discussed below. Avoid lengthy analysis Organizations tend to spend a lot of time analyzing the market and their competitors. Time is a crucial factor in e-business. Spending more time on analysis gives competitors the opportunity to move ahead. So it is essential that organizations complete their analysis within a short span of time. Flatten the hierarchy The lower the number of hierarchical levels that communication passes through, the more accurate and more effective it is. Hence, organizations should review the number of hierarchical levels present and reduce them to the minimum. Expect occasional sub-optimal results Organizations are not always able to achieve their set targets. They may sometimes fall short of their targets. Such failure should be tolerated and regarded as a learning opportunity. Test everything and test all the time One of the primary goals of organizations is to build capabilities that will help them better understand its customers, marketplace, and business processes. To achieve this goal, organizations must regularly test new approaches in marketing, sales, and service. Thus, controlled experimentation is a part of an effective e-business strategy. Benefits of EDI < TOP > EDI is a quick, inexpensive, and relatively safe method to transmit invoices, purchase orders, customs documents, shipping notices, other business documents between different firms. When these documents are transferred from computer to computer, the delay and cost incurred Page 14 of 19

4.

for re-keying the information is saved. Errors will be reduced to nearly zero percent. For large businesses like Boeing, GE, etc., who have thousands of suppliers and large number of purchase orders involving shipping notices and other documents, the cost saving will be considerable. Reduced paper based system Since EDI transactions are from system to system, a company is saved from maintaining a large number of records, paper related systems, stationary and the personnel required to maintain them. Improved problem resolution and customer service Inter-business problems caused due to erroneous data entry can be eliminated using EDI. EDI helps in quick transfer of documents, invoices, quick filing of orders, shipping notices, etc., which ultimately improves customer service. Enhanced partnership If a supplier accepts the manufacturer's request and becomes EDI enabled, he can move up in the relationship chain from the supplier to the partner. When evaluating the capabilities of suppliers, manufacturers prefer the suppliers who are EDI enabled. Even the ability to implement EDI can also be plus point in evaluation. 5. The most important factors taken into consideration while selecting EDI software are: < TOP > 1 .Number of Installations: A firm, which goes for buying the software, should inspect the popularity of the software with regards to the sectoral break down of installations. This is because some software may be good for some sectors like transportation, freight forwarding etc., but may not be so good for others. 2. Financial stability of software house: The software vendor should be able to support the software and execute maintenance contracts. This is of great importance because the software would have to be upgraded periodically to meet changing business needs. 3. Ease of use of software: The software selected should be user-friendly so that valuable man hours are not lost in providing specialized and long training to the personnel. For example, the package could be Windows based or menu driven for ease of use. 4. Hardware compatibility: The software should be compatible with different platforms. If a user wants to change its operating platform, the EDI software should be scalable to the new platform. 5. Ease of upgrade: The EDI software should be able to accommodate future changes that will arise as the EDI trading relationships of the company mature. 6. Network connectivity: The software should be checked whether it is providing connectivity to all other major EDI networks. 7. Multi-standards capability: When a firm sends messages to different partners with different standards, the EDI software should be able to accommodate them also. The following are the modules of Supply chain planning < TOP > Advanced scheduling and manufacturing planning modules The manufacturing and supply functions are coordinated, as per customer orders, using this module. Job schedules for manufacturing processes and supplier logistics are also created in this module. Demand planning modules Organizations rely on demand forecasts for their production schedules. These forecasts are generated and consolidated in this module using statistical tools and forecasting techniques. Distribution planning functions Operating plans are developed in this module. The demand and manufacturing modules are integrated with distribution planning for effective order fulfillment. The requirements specified by the customer are also incorporated using this module. Transportation planning The movement of materials and products in and out of the company is taken care of in this module. The products, materials, finished goods, etc., should be delivered to the specified address or persons at the right time according to the delivery schedule. Cost is a very Page 15 of 19

6.

important variable to be taken care of. The module also keeps track of -variables such as loading dock space, trailer availability, transportation modes, etc. ERP provides, the necessary support for the SCP modules. With the help of ERP, SCP processes can determine the demand for a product, the raw materials needed for the product, the time taken to manufacture and deliver it, and the inventory stock of the finished goods and raw materials. SCP applications should be flexible enough to accommodate multiple planning strategies like Profitable-to-Promise (PTP), ATP, Capable-to-Promise (CTP), etc. Usually when a customer requires a few changes in the order placed, a lot of variables like pricing, job sequencing, production schedules, transportation schedules are affected. A SCP application records these changes and makes these changes visible to all the people involved in the process. This makes it possible to coordinate the delivery schedules, shipping schedules, promotion schedule, etc. Since it acts as a single information source, different departments can coordinate their activities optimally. 7. The differentiator between sellers in today's competitive business environment is level of < TOP > efficiency of a firm, leading to cost-effective customer service. It is no longer sufficient for companies to handle inventory efficiently, they need to adopt a customer-centric strategy. Though planning is beneficial to companies in streamlining processes and reducing costs, it does not necessarily deliver benefits to customers if a customer-centric approach is not adopted. Execution in the supply chain needs to be based on all available information details at every stage. There should be no mismatch in this regard for a well-coordinated supply chain. Software applications for Supply Chain Execution (SCE) are commonly used by companies for managing outsourcing agreements. These applications manage assets, inventory, and orders. They are growing in popularity because: Businesses are trying to optimize coordination with external channel partners, after having maximized internal efficiencies

Since there is a need for external focus, companies feel that enterprise applications will be able to cater to varying data requirements in the real world scenario.

While using enterprise applications, companies can either focus on warehousing and transportation, or integrate planning systems with other enterprise software. The components of SCE are order planning, production, replenishment, distribution management, reverse distribution and logistics. Order planning Order planning is becoming increasingly complex because of the rise in customer expectations and shorter delivery cycles. Therefore organizations need to develop efficient execution plans. The plans that best satisfy customer needs should be selected keeping in mind the constraints (such as transportation). The selection process should take into consideration supply chain constraints such as inventory availability, production capacity, suppliers' ability to deliver on time and limitations posed by transportation modes (like truck capacity, maximum load for a truck, and availability of downstream resources). Production Modular product designs have facilitated the assembling of products in warehouses. Unlike a few decades ago, today sub-assemblies are procured when products are to be assembled. The time, quantity and location where the sub-assemblies will be required, are determined by the master production schedule and the Manufacturing Resource Planning (MRP) system. Replenishment Production is not restricted to the manufacturing of products; it includes replenishment strategies that help reduce inventory in the supply chain and facilitate product exchange between the channel partners. Timely replenishment of goods in the warehouse is a critical activity so that the risk of returning a customer empty-handed from a store is minimized. Distribution management Distribution management includes all the activities in transporting goods from the manufacturer to distribution center and finally to customers. Distribution management can be streamlined by integrating it with transportation planning and scheduling. Transportation management facilitates delivery, tracking of shipment and access to shipping details. It also supports a set of complex and dynamic requirements like document generation and regulatory Page 16 of 19

compliance for international trade. Reverse distribution or reverse logistics Products get outdated very fast. Rapid changes in fashion and generous warranties have resulted in a higher rate of return of goods in recent years. Reverse logistics is concerned with goods returned by customers due to dissatisfaction or defects. The goods are either sent back to the manufacturer or disposed off after the money is returned to the customers. It also includes products designed for re-manufacture, hazardous material and reusable packing.

Section C: Applied Theory

8.The value chain in the wireless industry consists of seven major components. The mobile value chain starts < from suppliers of equipments and includes networks, software, and services, finally ending at the consumerTOP . The players are: > Equipment Component Manufacturers: They manufacture parts and sub-assemblies that maintain the mobility and utility of mobile devices. The components enhance the technological capability of mobile devices. For example, batteries with longer life and other technical advancements help improve the performance of mobile phones. Wireless Network Infrastructure Providers: These include companies that provide hardware, fiber networks, wireless, communications towers and satellite networks to enable the convergence of the telecommunications and Internet Protocol (IP) networks. These players provide the points of connection that make possible a mobile network. The business transactions of these companies usually comprise hardware sales or leasing to telecom companies. Examples include Alcatel, American Tower, Ericsson, and Motorola, Mobile Device Manufacturers: These companies sell hardware like mobile phones, Personal Digital Assistants (PDAs), handheld PCs and other networking equipment to facilitate mobile applications. The device manufacturers are the customer's gateway to the wireless network. This segment also includes some complementary markets like PCs, semiconductors, servers, and telecommunications service and equipment. These companies sell mobile devices and other hardware directly to the users or network operators. Players in this segment include Handspring, Compaq, HP, and Sun Microsystems. The Mobile Value Chain

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Network Wireless Carriers: These companies sell network connections to provide mobile access services. They manage connectivity and charge monthly fee for their infrastructure. The fee is determined by the speed of connection and/or the volume of data transferred. Examples include AT&T Wireless, Cingular, Go America, OmniSky, and Palm.Net. Software and Services Providers: These companies sell software, including operating systems, security and applications software, which enables communication and commerce within and among organizations. They add value by expanding application solutions to business and consumer needs, enabling m-commerce. These companies derive revenues from software consulting, hosting, licensing, maintenance, and operation services. Players in this industry include Microsoft, Qualcomm, and Tibco. Solution Providers: These companies provide various services including consulting, design & implementation, information databases, hosting, renting applications and transaction processing. These companies provide solutions through storage and/or application of information for businesses and consumers. M-Businesses require radically different approaches in design, development, and implementation of mobile applications. The solution providers license/rent software or charge subscription fees for their services. Companies in this industry include Aether, Air2Web, and Mobilicity. Content and Portal Companies: These companies include mobile portals and mobile syndicators. They aggregate, organize and provide access to the content created by content development companies on mobile devices. Their business model is based on advertising and subscription fees. Players in this industry include About.com, Rediff.com, and Yahoo! < 9.Following are few components which are essential while implementing Customer Relations Management (CRM) TOP > Cross selling and Up-Selling Software The purpose of using cross selling and up-selling software is to identify prospective customers, track their details and forward them to the salespersons. The software can be used to schedule sales calls, track order progress, and to record sales transactions. To make the software more effective, it can be integrated with inventory and customer service software. Cross selling and up-selling efforts of an organization can be linked with the life cycle of customers. For example, banks and financial institutions can link their financial products and services with customer's life cycle. They can offer retirement plans, annuity plans, and so on to a customer approaching retirement and offer education savings plan to loan applicants with young kids. By selling complementary products to customers, companies can foster customer relationships. For instance, ICICI Bank in India offers a wide range of financial products and services including personal banking, bonds, brokerage services, insurance, and home loans. Hence, the bank derives significant benefits through cross selling (e.g. a home loan customer can be offered car loans) and up-selling (for e.g. a customer of ICICI brokerage services is offered investment advisory services and financial news) these financial products. Direct Marketing and Fulfillment Direct marketing includes advertising campaigns and other sales promotion techniques that provide product information and enable customers to make purchases. Automating this function is essential when there are multiple marketing programs that need to be handled across multiple channels. For instance, campaign management is a marketing process that uses automated systems to handle responses, manage logistics, and to convert leads into purchases. The objective of fulfillment is to handle customer's request for information quickly and effectively irrespective of the type of information requested. Fulfillment has to be integrated well with sales and marketing functions. A good fulfillment package provides timely reply to customers' inquiries on products and services. Customer Support and Service Customer support consists of several activities like service request management, customer surveys, accounts management, and detailed service agreements. Customer service essentially handles customer problems related to products and services. Help desk software is used to handle customers' queries and solve their problems efficiently. The software helps in verification of customer status, tracking specific tasks, maintaining history of inquiries, and monitoring support level agreements. Field Service Operations Field service is an extension of customer support and service. It is used when problems cannot be resolved over telephone or through e-mail. A field service executive is sent to the customer's site for repair or maintenance. Field service executives can render good customer service at reasonable cost. The field service software supports activities like scheduling and sending service personnel, managing logistics and inventory,>and also handling contracts and accounting problems. Page 18 of 19

Retention Management An effective CRM application helps in distinguishing customers based on the number of years of association with the company and the business given by each customer. A Decision Support System (DSS) helps in customer segmentation. A good DSS gathers detailed customer information and helps the organization in understanding their highly profitable customers.
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