BCS-62 Jadibuti (E- Commerce) E-Commerce (Indira Gandhi National Open University) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by AKASH GUPTA (
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>> M-Commerce, Attributes, Advantages & DisAdvantages, Application Workflow, key drivers from m-Commerce M-commerce, short for mobile commerce, refers to the process of conducting commercial activities, including buying and selling goods and services, through mobile devices such as smartphones and tablets. It involves using wireless technology and mobile applications to facilitate various transactions, including online shopping, mobile banking, mobile payments, and more. Attributes of M-commerce: > Mobility: M-commerce allows users to access and engage in commercial activities from anywhere and at any time, as long as they have a mobile device with an internet connection. > Convenience: Mobile devices are portable and readily available, enabling users to make purchases or transactions on the go. M-commerce eliminates the need for users to be tied to a specific location or rely on desktop computers. > Personalization: Mobile apps and services can collect user data and preferences, allowing for personalized recommendations and tailored shopping experiences. This personalized approach enhances customer satisfaction and increases the likelihood of repeat purchases. > Location-based services: Mobile devices have built-in GPS capabilities, which enable location-based services. M-commerce can leverage this feature to offer personalized promotions, targeted advertisements, and proximity-based services to users based on their current location. Advantages of M-commerce: > Accessibility: M-commerce enables businesses to reach a broader customer base by making their products and services accessible to users who primarily use mobile devices. > Increased sales potential: The convenience and accessibility of m-commerce can lead to increased sales and revenue for businesses, as customers can make purchases anytime and anywhere. > Improved customer engagement: Mobile apps and notifications provide businesses with direct and personalized communication channels to engage with customers, offer promotions, and gather feedback. > Enhanced user experience: M-commerce applications can provide a seamless and user-friendly interface, making it easier for customers to browse products, compare prices, and make purchases. Disadvantages of M-commerce: > Security concerns: Mobile devices are susceptible to security threats such as data breaches and unauthorized access. Protecting sensitive information, such as payment details, is crucial in m-commerce to ensure customer trust and confidence. > Limited screen size: Mobile devices have smaller screens compared to desktop computers, which can pose challenges in terms of displaying complex product information or conducting detailed transactions. > Connectivity issues: M-commerce heavily relies on internet connectivity. Poor network coverage or unstable connections can disrupt the user experience and hinder transactions. Applications workflow in M-commerce: > Mobile shopping apps: Users browse products, compare prices, read reviews, and make purchases directly through mobile shopping applications. > Mobile banking and payments: Users can access their bank accounts, perform transactions, transfer funds, pay bills, and make secure mobile payments using dedicated banking apps or mobile wallets. > Mobile ticketing and reservations: Users can purchase tickets for various events, book flights, hotels, or restaurant reservations through mobile apps. Key drivers of M-commerce: > Increasing smartphone penetration: The widespread adoption of smartphones has significantly contributed to the growth of m-commerce, as more people have access to mobile devices capable of conducting transactions. > Advancements in mobile technology: The constant advancements in mobile technology, such as faster internet speeds, improved security measures, and enhanced user interfaces, have made m-commerce more seamless and user-friendly. > Rise of mobile apps: The popularity of mobile applications has created a convenient platform for businesses to offer their products and services directly to mobile users, driving the growth of m-commerce. > Shift in consumer behavior: Consumers are increasingly relying on their mobile devices for various activities, including shopping and banking. This shift in behavior has prompted businesses to adapt and provide mobile-friendly solutions. >> Electronic Markets short note : Electronic markets, also known as e-markets or online marketplaces, refer to digital platforms or websites where buyers and sellers come together to engage in buying and selling activities. These markets provide a virtual space for participants to exchange goods, services, or information electronically. Features and Functionality: Virtual Space, Wide Reach, Product and Service Listings, Search and Discovery, Communication Tools, Transaction Support, Feedback and Ratings. Examples: Amazon, Alibaba, eBay & Airbnb etc. Advantages : Expanded Reach, Convenience, Increased Competition, Transparency. Challenges : Trust & Security, Quality Assurance, Platform Fees. Electronic markets have revolutionized the way commerce is conducted, providing efficient & convenient platforms for people. >> Characteristics of B2B, B2C, C2B, C2C models of e-commerce w/ examples. B2B (Business-to-Business): B2B e-commerce involves transactions between businesses, where one business sells products or services to another business. Characteristics: Large order volumes, long-term contracts, complex negotiations, and customized pricing. Example: A manufacturer selling raw materials to a clothing company for production. B2C (Business-to-Consumer): B2C e-commerce involves transactions between businesses and individual consumers, where businesses sell products or services directly to end consumers. Characteristics: Focus on mass marketing, branding, customer experience, and personalized offerings. Example: An online retailer selling electronics and gadgets to individual customers. C2B (Consumer-to-Business): C2B e-commerce involves transactions where individual consumers offer products or services to businesses. Characteristics: Consumers act as sellers, providing goods or services that businesses need. Example: Freelancers or independent contractors offering their services to businesses, such as a graphic designer creating a logo for a company. C2C (Consumer-to-Consumer): C2C e-commerce involves transactions between individual consumers, where consumers sell products or services to other consumers. Characteristics: Peer-to-peer transactions, online marketplaces, and platforms facilitating exchanges between individuals. Example: Online classified websites or auction platforms, where individuals sell used items to other individuals, like selling a used bicycle on an online marketplace. >> Transplanted real world business models. Transplanted real-world business models refer to the adaptation or replication of existing business models from the physical world into the digital realm. It involves taking a successful business model that has proven effective in traditional brick-and-mortar settings and implementing it in an online or digital context. Transplanting real-world business models into the digital domain allows businesses to leverage the advantages of the online environment, such as wider reach, cost efficiency, and convenience. It involves transforming the core aspects of a physical business model to suit the unique characteristics of the digital landscape. For example, a traditional retail store may transplant its business model by establishing an e-commerce website where customers can browse and purchase products online. This involves replicating the key elements of the physical store, such as product assortment, pricing strategy, customer service, and fulfillment, into the digital platform. >> Native Internet Business models Native internet business models refer to business models that are specifically designed and developed to take full advantage of the unique features and capabilities of the internet. Unlike transplanted real-world business models, native internet business models are created from scratch with the internet as their primary foundation. Native internet business models leverage the inherent characteristics of the internet, such as connectivity, vast information access, and digital interactions, to deliver innovative products, services, or experiences. These models often capitalize on the internet's ability to connect large numbers of users, enable data-driven decision-making, and facilitate user-generated content. Examples of native internet business models include: Platform-based models: These models focus on creating digital platforms that connect different parties and facilitate transactions or interactions. For e.g. Amazon & eBay, Social Media Platforms like Facebook & Instagram & ride-sharing platforms like Uber. etc. Freemium models: These models offer basic services products for free charge users for additional features or premium versions. E.g. Spotify & Dropbox utilize this model. Subscription-based models: These models provide ongoing services or content for a recurring fee. For e.g. Netflix, Spotify. Data-driven models: These models rely on collecting and analyzing user data to deliver personalized experiences, targeted advertising, or data-based insights. For e.g. Google, Facebook generates revenue by leveraging user data for targeted advertising. >> Digital Signature & its working A digital signature is a cryptographic technique used to verify the authenticity and integrity of digital documents or messages. It provides assurance that the content has not been altered during transmission and that it originates from a specific sender. In essence, a digital signature serves as a virtual equivalent of a handwritten signature. Here's a simplified explanation of how it works: Creation: The sender uses a mathematical algorithm to generate a unique digital signature for the document. This algorithm uses the sender's private key, which is kept secure and known only to the sender. Hashing: The document is then transformed into a fixed-length "hash" or "digest" using a cryptographic hashing algorithm. This hash is unique to the document and acts as a digital fingerprint. Encryption: The sender's private key encrypts the hash, creating the digital signature. The encrypted signature is appended to the document. Verification: The recipient receives the document and the digital signature. They use the sender's public key, which is freely available, to decrypt the signature and obtain the hash. Hash Comparison: The recipient independently calculates the hash of the received document using the same hashing algorithm used by the sender. They compare this calculated hash with the decrypted hash obtained from the signature. Authenticity Check: If the calculated hash matches the decrypted hash, it means the document has not been tampered with during transmission and the digital signature is valid. The recipient can verify the authenticity and integrity of the document. >> What is a Search Engine? Search Engines are programs that search documents for specific keywords and return a list of the documents where the keywords were found. A search engine is really a general class of programs, however, the term is often used to specifically describe systems like Google, Bing and Yahoo! Search that enables users to search for documents on the World Wide Web. Most search engines can be divided into two common groups: 1. Spider- or Crawler-Based Search Engines - The search engine sends out many 'crawlers' which trawl the Web randomly, following links and indexing page content as they go. Some common crawlers are the GoogleBot and MSNBot which power Google and Bing. 2. Human-Edited Web Directories -Directories are human-maintained indexes of websites organized into a comprehensive hierarchy. To add your site to a directory you must submit it to an editor who reviews it first. Many directories charge a fee for inclusion, but the Open Directory Project is a popular free service. >> Cyber Crime, Different categories of Cyber Crime & related penalties under IT ACT 2000 Cybercrime is a crime that involves a computer and a network. The computer may have been used in the commission of a crime, or it may be the target. Cybercrime may harm someone's security and financial health. Cybercrime, also called computer crime, the use of a computer as an instrument to further illegal ends, such as committing fraud, trafficking in child pornography and intellectual property, stealing identities, or violating privacy. Cybercrimes in general can be classified into four categories: 1. Individual Cyber Crimes: This type is targeting individuals. It includes phishing, spoofing, spam, cyberstalking, and more. 2. Organisation Cyber Crimes: The main target here is organizations. Usually, this type of crime is done by teams of criminals including malware attacks and denial of service attacks. 3. Property Cybercrimes: This type targets property like credit cards or even intellectual property rights. 4. Society Cybercrimes: This is the most dangerous form of cybercrime as it includes cyber-terrorism. Cyber crime leads to penalties for cyber crimes under I.T. Act 2000 i.e. Imprisonment of 3 years or a fine of Rs. 2 lakhs or both. Offenses related to computers or any act mentioned in Section 43. Imprisonment of 3 years or a fine that extends to Rs. 5 lakhs or both. >> Different components in the online delivery of goods & services. Explain their role. The four main components of a service are as follows: 1. The Physical Product 2. The Service Product 3. The Service Environment 4. The Service Delivery 1.The Physical Product: - The physical product is whatever the organization transfers to the customer that can be touched. It is tangible and physically real. Examples include houses, automobiles, computers, books, hotel soap and shampoo, and food. As with the rest of the service offering, product design must be customer- oriented. There is a well-developed method for ensuring that product design matches customer needs, called Quality Function Deployment (QFD). 2.The Service Product:- The service product is the core performance purchased by the customer, the flow of events designed to provide a desired outcome. It refers to that part of the experience apart from the transfer of physical goods and typically includes interactions with the firm’s personnel. For example, at some car dealer showrooms customers are allowed to look at the cars in the showroom without being approached by sales representatives. 3.The Service Environment: - The service environment (Table 2.4) can also signal the intended market segment and position the organization. For example, a restaurant near a university campus might signal that it is catering to college students by putting college memorabilia and pictures of students on the walls. A car dealer might use its service environment to position it as upscale by decorating its showroom in the service environment: the ambient conditions, the spatial layout, and the signs and symbols. 4.The Service Delivery: - The service delivery refers to what actually happens when customers buy the service. The service product defines how the service works in theory, but the service delivery is how the service works in actual practice. We often hear the adage, “Plan your work, and work your plan”. >> EDI Standards & two EDI standards : EDI standards, which stands for Electronic Data Interchange standards, are a set of rules and formats that facilitate the exchange of business documents electronically between trading partners. These standards define the structure and syntax of the data exchanged, ensuring consistency and compatibility across different systems and organizations. They play a crucial role in enabling seamless and efficient electronic communication between businesses. Two popular EDI standards are: ANSI X12: ANSI X12, developed by the American National Standards Institute (ANSI), is widely used in North America for various industries such as retail, healthcare, finance, and manufacturing. It defines a standardized format for electronic business transactions, including purchase orders, invoices, shipping notices, and more. ANSI X12 utilizes a hierarchical structure with segments, data elements, and delimiters to represent the data being exchanged. Each transaction set in ANSI X12 has a specific purpose and is identified by a unique code. EDIFACT: EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport) is an international EDI standard developed under the United Nations/Electronic Data Interchange for Administration, Commerce, and Transport (UN/EDIFACT) framework. It is widely used in Europe and other regions globally. EDIFACT provides a standardized format for exchanging business documents across various industries, including transportation, logistics, customs, and finance. It defines a hierarchical structure with segments, data elements, and separators to represent the data being transmitted. EDIFACT supports a wide range of business transactions, such as Downloaded by AKASH GUPTA (
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>> SSL Working & Diagram SSL stands for Secure Sockets Layer. It is a protocol used to establish a secure and encrypted connection between a web server and a client (such as a web browser). The SSL protocol ensures that the data transmitted between the server and the client remains private and cannot be intercepted or tampered with by unauthorized individuals. The working of SSL involves the following steps: 1. Handshake: The client initiates a secure connection request to the server. 2. Server Authentication: The server sends its digital certificate to the client, which contains the server's public key and other identifying information. 3. Client Authentication (optional): If required, the client sends its digital certificate to the server for authentication. 4. Key Exchange: The client generates a random symmetric encryption key and encrypts it using the server's public key. The encrypted key is sent to the server. 5. Encryption: Both the client and the server use the exchanged symmetric encryption key to encrypt and decrypt data transmitted between them. 6. Secure Data Transfer: The encrypted data is securely transmitted over the established SSL connection. 7. Session Termination: Once the data transfer is complete, the SSL connection can be terminated. In summary, SSL ensures secure communication by verifying the identity of the server, encrypting the data transmitted between the server and the client, and establishing a secure connection using symmetric encryption. >> E-commerce Workflow Adv & DisAdv over m-Commerce E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet. It involves online transactions, electronic funds transfer, online shopping, and other activities related to conducting business online. The workflow of e-commerce typically involves the following steps: 1. Online Store Setup: A business creates a website or an online platform to showcase and sell its products or services. 2. Product Display: The business presents its products or services with descriptions, images, and pricing details on the online store. 3. Customer Browsing and Selection: Customers visit the online store, browse through the available products or services, and select the items they wish to purchase. 4. Shopping Cart: Customers add selected items to a virtual shopping cart for temporary storage while they continue browsing. 5. Checkout Process: Customers proceed to the checkout page, where they provide shipping and payment information. 6. Payment Processing: The customer's payment details are securely transmitted, and the payment is processed electronically. 7. Order Confirmation: Once the payment is successfully processed, the customer receives an order confirmation, and the business is notified of the purchase. 8. Order Fulfillment: The business prepares the order for shipping and delivers it to the customer's specified address. Advantages of e-commerce include: 1. Global Reach: Businesses can reach customers worldwide, expanding their market reach. 2. Convenience: Customers can shop anytime and anywhere, without the constraints of physical store hours. 3. Cost Savings: Online businesses can save on expenses related to physical stores, such as rent and staffing. 4. Personalization: E-commerce allows businesses to personalize the shopping experience for individual customers based on their preferences and buying history. Disadvantages of e-commerce compared to m-commerce (mobile commerce) include: 1. Limited Accessibility: E-commerce requires an internet connection and a compatible device, which may limit access for individuals without internet access or smartphones. 2. User Experience: Mobile devices have smaller screens, making it potentially more challenging to navigate and view product details compared to larger desktop screens. 3. Mobile Payment Challenges: Mobile payment options may have limitations or compatibility issues with certain devices or regions. 4. Security Concerns: Mobile devices may be more susceptible to security risks, such as malware or unauthorized access, compared to more secure desktop environments. >> E-commerce Trade Cycle Role of Intermediary The e-commerce trade cycle refers to the process and flow of activities involved in conducting online transactions between buyers and sellers. It typically includes the following stages: 1. Online Presence: Sellers establish their online presence by setting up an e-commerce website or joining an online marketplace. 2. Product Listing: Sellers list their products or services on the online platform, providing details such as descriptions, images, pricing, and availability. 3. Customer Search and Selection: Customers browse through the available products or use search functions to find items of interest. They compare options, read reviews, and make selections based on their preferences. 4. Ordering and Payment: Customers add selected items to their virtual shopping carts and proceed to the checkout process. They provide shipping and payment information and complete the transaction electronically. 5. Order Fulfillment: Sellers receive the order details and prepare the products for shipment. This involves packaging, labeling, and coordinating with shipping providers to deliver the products to the customer's specified address. 6. Shipment and Delivery: The products are shipped to the customer through various logistics services. Tracking information may be provided to customers to monitor the delivery status. 7. Customer Support: Online marketplaces and sellers provide customer support for inquiries, order updates, returns, and other related matters. 8. Feedback and Reviews: Customers have the opportunity to leave feedback and reviews based on their buying experience, which can influence future purchasing decisions for other customers. Intermediaries, such as online marketplaces, play a significant role in adding value to e-commerce transactions. Here's how they contribute: 1. Increased Reach and Visibility: Online marketplaces provide a centralized platform that attracts a large number of buyers, giving sellers greater exposure and access to a broader customer base. This expands their reach beyond what they might achieve individually. 2. Trust and Credibility: Established online marketplaces often have built-in trust and credibility among consumers. Buyers feel more confident purchasing from these platforms due to their reputation, secure payment systems, and buyer protection policies. 3. Streamlined Infrastructure: Online marketplaces offer a pre-existing infrastructure that handles critical functions such as product listing, shopping cart management, and payment processing. Sellers can leverage this infrastructure rather than building their own, reducing costs and time-to-market. 4. Marketing and Promotion: Online marketplaces invest in marketing and promotion activities to attract customers, driving traffic to the platform. This benefits sellers by increasing the visibility and discoverability of their products. 5. Customer Acquisition and Retention: By being part of an online marketplace, sellers can tap into the marketplace's existing customer base and benefit from their marketing efforts. Additionally, marketplaces often implement loyalty programs and personalized recommendations to enhance customer retention and repeat purchases. 6. Seller Tools and Analytics: Online marketplaces typically provide sellers with tools and analytics to manage their inventory, monitor sales performance, and gain insights into customer behavior. These features help sellers optimize their operations and make data-driven decisions. >> Diff b/w portals of m-commerce & e-commerce from user perspective. From a user perspective, m-commerce (mobile commerce) and e-commerce (electronic commerce) portals differ in several ways. Here are some key differences: Device Accessibility: The primary difference is the device used for accessing the portals. M-commerce portals are specifically designed and optimized for mobile devices such as smartphones and tablets, while e-commerce portals are typically accessed through desktop or laptop computers. M-commerce portals provide a more convenient and mobile-friendly experience, allowing users to make purchases on the go. User Interface: The user interface of m-commerce portals is tailored to the smaller screens of mobile devices. They often feature simplified layouts, larger buttons, and touch-friendly navigation to enhance the user experience on mobile screens. On the other hand, e-commerce portals can take advantage of larger screens to display more information and provide a wider range of features. User Experience: M-commerce portals aim to provide a seamless and intuitive user experience on mobile devices. They leverage mobile-specific features such as location-based services, push notifications, and mobile payment options (e.g., Apple Pay, Google Pay) to enhance convenience and engagement. E-commerce portals, while still striving for user-friendly experiences, may not have the same level of mobile-specific features. Contextual Factors: M-commerce portals can leverage contextual factors unique to mobile devices, such as GPS location, accelerometer, and camera, to offer personalized experiences. For example, an m-commerce app can provide location-based recommendations or allow users to scan QR codes for quick access to product details. E-commerce portals may not have access to these contextual factors and rely more on user input. Connectivity: M-commerce portals need to consider intermittent or limited connectivity, as users may be accessing them on the move or in areas with weak network coverage. They may provide offline capabilities, such as saving shopping carts or displaying cached content, to ensure users can continue browsing or making purchases even when network connectivity is temporarily unavailable. E-commerce portals typically assume a more stable and consistent internet connection. App vs. Website: M-commerce often involves dedicated mobile applications that users can download and install on their devices, providing a more integrated and customized experience. These apps can leverage device capabilities and offer offline functionalities. E-commerce portals, on the other hand, primarily rely on websites, which are accessible through web browsers on desktop and mobile devices. >> Benefits of M-commerce & E-commerce to organizations, customers and society at large. [+] E-Commerce : – Benefits of Electronic-Commerce to Organizations - Using e-commerce, organizations can expand their market to national minimum capital investment. - An organization can easily locate more customers, best suppliers, and suitable business partners across the globe. - E-commerce helps organizations to reduce the cost to process the paper based information by digitizing the information. - E-commerce improves the brand image of the company. - E-commerce helps organizations to provide better customer services. - E-commerce helps to simplify the business processes and makes them faster and ef - E-commerce reduces the paperwork. - E-commerce increases the productivity of organizations. - It supports “pull type supply management. In “pull type supply management, a business process starts When a request comes from a customer and it uses just-in-time manufacturing. Benefits of Electronic-Commerce to Customers - It provides 24x7 support. - Customers can enquire about a product or service and place orders anytime, anywhere from any location. - E-commerce applications provide users with more options and quicker delivery of products. - E-commerce application provides users with more options to compare and select the cheaper and better options. - A customer can put review comments about a product and can see what others are buying, or see the review comments of other customers before making a final purchase. - E-commerce provides options for virtual auctions. - It provides readily available information. - A customer can see the relevant detailed information within seconds, rather than waiting for days or weeks. - E-Commerce increases the competition among organizations and as a result, organizations provide substantial discounts to customers. Benefits of Electronic-Commerce - Customers need not travel to shop a product, thus less traffic on the road and low air pollution. - E-commerce helps in reducing the cost of products, so less affluent people can also afford the products. - E-commerce has enabled rural areas to access services and products, which are otherwise not available to them. - E-commerce helps the government to deliver public services such as healthcare, education, social services at a reduced cost and in an improved manner. [+] M-Commerce : > Benefits for Organizations: 1. Increased Reach: M-commerce enables organizations to reach a wider audience as mobile devices are becoming increasingly prevalent worldwide. 2. Enhanced Customer Engagement: Mobile apps and platforms allow organizations to interact with customers in real-time, offering personalized recommendations, push notifications, and loyalty programs. 3. Improved Sales and Conversions: M-commerce provides a convenient and seamless shopping experience, which can lead to increased sales and higher conversion rates. 4. Data Collection and Analysis: Mobile commerce generates valuable data that organizations can collect and analyze to gain insights into customer behavior, preferences, and market trends. > Benefits for Customers: 1. Convenience: M-commerce allows customers to shop anytime, anywhere, eliminating the need to visit physical stores or be tied to a desktop computer. 2. Personalized Experience: Mobile apps can offer personalized recommendations based on customer preferences, browsing history, and location, enhancing the shopping experience. 3. Seamless Transactions: Mobile payment options, such as digital wallets, enable quick and secure transactions, reducing the need for physical cash or card payments. 4. Easy Product Research: Customers can quickly access product information, reviews, and comparisons on their mobile devices, aiding informed purchasing decisions. > Benefits for Society at Large: 1. Accessibility: M-commerce enables people with limited access to physical stores, such as those in remote areas, to access a wide range of products and services. 2. Financial Inclusion: Mobile banking and payment options promote financial inclusion, allowing individuals without traditional bank accounts to participate in the digital economy. 3. Employment Opportunities: M-commerce creates job opportunities in areas such as app development, digital marketing, logistics, and customer support. 4. Sustainability: M-commerce reduces the need for physical transportation and infrastructure associated with traditional retail, contributing to environmental sustainability. >> Cyber Laws Short Note : Cyber laws, also known as information technology laws or internet laws, encompass a set of legal principles and regulations governing the use of digital technology, computer networks, and the internet. With the rapid growth of technology and the increasing reliance on digital platforms, cyber laws play a crucial role in maintaining order, protecting individuals and organizations, and fostering a secure digital environment. > Importance of Cyber Laws : – 1. Protection of Personal Information 2. Combating Cybercrimes 3. Safeguarding Intellectual Property 4. Regulating Online Activities 5. Ensuring Cybersecurity > Key Aspects of Cyber Laws : – 1. Jurisdiction 2. Digital Rights and Freedoms 3. Liability and Responsibility 4. Incident Response and Investigation Downloaded by AKASH GUPTA (
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