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Chap 6 introduction to e-commerce
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Chap 6 introduction to e-commerce

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  • 1. Information Security Chapter-6 Introduction to E-Commerce Computer Department/Sardar Patel Institute of Technology, Piludara Page 1 Chapter-6: Introduction to E-Commerce Q-1: Explain Introduction to E-Commerce. Commerce constitutes the exchange of products and services between business groups and individuals. Commerce or trade can be seen as one of the essential activities of any business. Electronic commerce (e-commerce) uses information and communication technology to enable the external activities and relationships of the business with individuals, groups and other businesses. Electronic commerce executes on the resources of Internet, Intranets and Extranets. Electronic commerce involves interactive marketing process and payment processes on WWW. Scope of Electronic commerce(e-commerce) The e-commerce transactions can be either buy-side e-commerce or sell-side e- commerce. Both types of e-commerce are relying on Internet technologies. 1. Buy-side e-commerce Buy-side e-commerce refers to transactions to procure resources needed by an organization from its suppliers i.e., e-commerce transactions between a purchasing organization and its suppliers. Examples of buy-side e-commerce activities are product discovery, product evaluation, terms negotiations, order placement, order tracking, order payment, product service and support. 2. Sell-side e-commerce Sell-side e-commerce refers to transactions involved with selling products to an organization’s customer i.e., e-commerce transactions between a supplier organization and its customer. Examples of sell-side e-commerce are market research, market stimulation, terms negotiations, order receipt, order selection, order billing, payment, delivery, customer service and support.
  • 2. Information Security Chapter-6 Introduction to E-Commerce Computer Department/Sardar Patel Institute of Technology, Piludara Page 2 Electronic commerce can include interactive marketing ordering payment customer support processes by flooding e-commerce catalog and auction site on WWW. The importance of the Internet for business is that it provides new opportunities for conducting relationships with customers and suppliers. Essential IT Services for e-commerce  The information technology services required for Electronic commerce are: 1. Internet 2. Intranets 3. extranets  E-commerce is mainly supported by following IT services: 1. Electronic mail 2. Electronic fund transfer 3. Electronic bulletin boards 4. Electronic Data Interchange (EDI) 5. Credit cards 6. Smart cards 7. Electronic catalogues  The Internet, intranet and extranet provide a globalized connection to customers and suppliers.  The internet provides a huge electronic market place that will largely replace existing forms of market economy.
  • 3. Information Security Chapter-6 Introduction to E-Commerce Computer Department/Sardar Patel Institute of Technology, Piludara Page 3  Internet provides businesses, entrepreneurs an economic model on which electronic commerce is based.  Internet is accessible to everyone and same technology is available to everyone and nobody owns it.  Applications of different internet tools for e-commerce are summarized in following table. Q-2: Explain Transactions on E-Commerce. 1. B2C E- Commerce
  • 4. Information Security Chapter-6 Introduction to E-Commerce Computer Department/Sardar Patel Institute of Technology, Piludara Page 4 2. B2B E-Commerce 3. C2C E-Commerce Q-3: Explain Requirement of security on E-Commerce. Requirements of Security on E-Commerce Payment Processes
  • 5. Information Security Chapter-6 Introduction to E-Commerce Computer Department/Sardar Patel Institute of Technology, Piludara Page 5 Electronic Funds Transfer (EFT)
  • 6. Information Security Chapter-6 Introduction to E-Commerce Computer Department/Sardar Patel Institute of Technology, Piludara Page 6 Types / Forms of EFT Systems Secure Electronic Payments / Electronic Payment Processes [A] Requirements for security system
  • 7. Information Security Chapter-6 Introduction to E-Commerce Computer Department/Sardar Patel Institute of Technology, Piludara Page 7 1.Authentication 2.Privacy and confidentiality 3.Integrity 4.Non-repudiability 5.Availability [B] Security measures
  • 8. Information Security Chapter-6 Introduction to E-Commerce Computer Department/Sardar Patel Institute of Technology, Piludara Page 8 Secure Electronic Transaction (SET) Internet: 1. Internet is network of Computers which is open for all. 2. Internet itself contains a large number of intranets. 3. Unlimited number of users. 4. Visitors traffic is unlimited. 5. Contains unlimited source of information. 6. Collection of various LANs, WANs and MANs. Intranet: 1. Intranet is network of Computers designed for a specific group of users. 2. Intranet can be accessed from Internet but with restrictions. 3. Limited number of Users. 4. Limited visitors traffic. 5. Contains only specific group purpose information. 6. Mostly any of LAN or MAN or WAN. Extranet  The Extranet is a portion of an organization's Intranet that is made accessible to authorized outside users without full access to an entire organization's intranet.