E-Commerce BCA 305

Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Semester: FIFTH Semester
Name of the Subject: E-Commerce(BCA-305)
DEFINITION OF ECOMMERCE,TYPES OF
ECOMMERCE,TRADE CYCLE ,BENEFITS
OF ECOMMERCE AND ISSUES AND
CHALLENGES OF ECOMMERCE

DEFINATION OF E-
COMMERCE
E-commerce is a new way of conducting
business, and as with any other new
application of technology, it
presents both opportunities for
improvement and potential problems

An Introduction to Electronic
Commerce
• Business-to-consumer (B2C) e-commerce:
customers deal directly with the organization,
avoiding any intermediaries
• Business-to-business (B2B) e-commerce:
participants are organizations
• Consumer-to-consumer (C2C) e-commerce:
participants are individuals, with one serving as the
buyer and the other as the seller

Three Basic Components of a
Successful E-Commerce
Model

Business-to-Business (B2B)
E-Commerce
• Allows manufacturers to buy at a low cost
worldwide
• Enterprises can sell to a global
market
• Offers great promise for developing
countries

Business-to-Consumer (B2C)
E-Commerce
• Convenience
• Many goods and services are cheaper when
purchased via the Web
• Comparison shopping
• Disintermediation: elimination of intermediate
organizations between the producer and the consumer

Consumer-to-Consumer
(C2C) E-Commerce
• Often done through Web auction
sites such as eBay
• Growth of C2C is responsible for
reducing the use of the classified
pages of newspapers to advertise
and sell personal items

E-Commerce Transaction
Processing
E-commerce transaction processing software:
connects participants in the e-commerce economy and
enables communication between trading partners,
regardless of their technical infrastructure
•
• Fully automates transaction processes from order
placement to reconciliation
• Web site traffic data analysis software: processes and
analyzes data from the Web log file to provide useful
information to improve Web site
performance

Electronic Payment Systems
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•
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• Digital certificate: an attachment to an e-mail
message or data embedded in a Web page that
verifies the identity of a sender or a Web site
Certificate authority (CA): a trusted third party that
issues digital certificates
Secure Sockets Layer (SSL): a communications
protocol used to secure sensitive data
Electronic cash: an amount of money that is
computerized, stored, and used as cash for e-
commerce transactions

The trade cycle
• Conducting a commercial transaction involves the
following steps:
– Pre-Sale:
• Search - finding a supplier
• Negotiate – agreeing the terms of trade
– Execution:
• Order
• Delivery
– Settlement:
• Invoice
• Payment
– After-sales, e.g. warrantee and service

C redit C ashTrade Cycle: Repeat
Search
Negotiate
Order
Deliver
Invoice
P ayment
After Sales
Pre-Sale
E xecution
Settlement
After Sale

EC
Advantages/Disadvantages
• EC Advantages
–Ability to reach new markets
–Reduces costs (for some
businesses)
–Increased purchasing opportunities
–More efficient (electronic payments,
telecommuting, etc.)

EC
Advantages/Disadvantages
• EC Disadvantages
–Incompatibility for certain
industries
–Limitations of the medium
–Costs!!!
–Skills required
–Cultural and legal issues

Future of E-Commerce
• eMarketer, an Internet technology (IT) research and
reporting firm, estimates that the dollar figure for e-
commerce will rise from approximately
– U.S. $18 billion in 1998 to
– U.S. $294 billion in 2002. US
– Or maybe $184 billion by 2004.
(Forrester, Business 2.0 Jan 2000)
In Europe, consumers' internet purchases will jump from:
– US $2.9 billion in 1999 to
– US $174 billion in 2005.
Online business-to-business e-commerce is projected to speed
past $1 trillion in annual revenue by 2003
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•

Future Trends to Watch in E-
Commerce
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• Women take control. Women make or influence 80
percent of household sales in the United States,
according to WomanTrend, despite the fact that they
make up 51 percent of the population.
The untapped get tapped. Two highly touted markets
$509 million health and beauty, and $513 million grocery
still lag behind expectations.
More "click and mortar." Traditional retailers Circuit City,
Crate and Barrel, Sears, Toys R Us, Wal- Mart, and
Federated Department Stores missed the boat in 1995
and 1996, but rest assured they "get it" now, and are
attempting re-entry, this time around with more money and
smarts. Watch out.

Challenges
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•
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Note: Challenges are not “problems” but
opportunities that are difficult and if not may
become problems
Challenges reflect a goal and mission The
initial e-commerce mission has been
achieved: there are still plenty of problems – security,
building trust relationships, credit mechanisms (an
understudied issue), designing
mobile services people will pay for, etc..
• BUT: we have gone way beyond E-commerce, are
pretty much done with E-Commerce, are in e-
Commerce and in many instances Commerce

Where we are TODAY
Economy
•
•
Welcome to the variable cost economy
Goodbye to the value “chain” – we are in the
business of “scale-free” value networks
Business is now on demand: global co-sourcing of
skills, outsourcing of basic processes, intellectual
“property” as licensing not protection, open sourcing as
the basic substructure of business, branded technology
mega-utilities, modular services instead of systems
“development”, drop- shipment as business model, etc..
The key challenge: your role in the Creative
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•

Some realities
• The U.S. and Europe face exactly the same phenomenon
in global outsourcing of low-end processes and of high end
knowledge work as in the outsourcing of manufacturing –
except faster, bigger and with even more radical
consequences: the work is where the (best) people are, not
the other way around
Any region or country can now be eBig – without
heavy capital investment
The e-commerce technology base is a substructure, not
infrastructure
•
•
• Traditional IS is dead

The Challenges
eBig is the single key challenge everywhere: the new Europe
recreates Europe and has a unique historical opportunity
IS must learn about design and collaboration (good
luck!!!!)
Educators must ensure they position students to be part of the
creative not commodity skill market: Today’s premium skills
and managerial practices are often tomorrow’s “Save As…”
and XML/SOAP messages
The e-commerce business- organization- and people-
centered community must take the lead in business
process design and face off the new generation BP
automators

The challenge agenda
• For business on demand users of services: sourcing of
skills, contracting and coordination skills, the process-
driven firm, defining roles and players in value
networks
For regions and countries: bringing together the action-
makers not just policy-makers in government, business
leadership, community and educators (yes, it can be
done: think Ireland) to build a role in the on demand
world
For organizations: solving the dilemmas of
demographics and skill sourcing (and, alas, the
painful disruptions of many labor markets
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•

UNIT -II
Intranet, Extranet and VPN, Electronic
Payment Systems, Security E-Commerce
Transactions,Encrypion,Managerial
Issues,

INTRANET SOFTWARE
Intranet Software enables an organization to securely
share it's information or operations with it's members. It
enables the efficient use and more importantly reuse of
an organization's gathered business knowledge and
intelligence, which increases productivity and
knowledge transfer in any organization. Increasingly,
extranets are also coming into use, where external
partners, customers can also interact with an
organization. E.g. ERP software that provides a
centralized repository of information for massive amount
of transaction and details generated daily.

Applications of Intranet
• Inter-office e-mail, this capability allows the employees of a company to
communicate with each other swiftly and easily. If the intranet has access to
the Internet, e-mail can be accessed through the Internet connection. If the
intranet is running without the Internet, special e-mail software packages
can be bought and installed so that employees can take advantage of its
many benefits.
2. An intranet has many other different applications that can be utilized
by a company. These include the Web publishing of•
corporate documents, Web forms, and Web-to-database links that allow
users to access information.
3. Newsletters, information on benefits, job listings and classifieds,
libraries, stock quotes, maps, historical data, catalogs, price lists,
information on competitors' products, and customer
•
service data are just a few examples of these types of applications.

Electronic Payment
Systems
Electronic Payment is a financial exchange
that takes place online between buyers and
sellers. The content of this exchange is
usually some form of digital financial
instrument (such as encrypted credit card
numbers, electronic cheques or digital cash)
that is backed by a bank or an intermediary,
or by a legal tender

Types of Electronic
Payment System
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Electronic Tokens
An electronic token is a digital analog of various forms of payment backed by a bank
or financial institution. There are two types of tokens:
Real Time: (or Pre-paid tokens) - These are exchanged between buyer
and seller, their users pre-pay for tokens that serve as currency.
Transactions are settled with the exchange of these tokens. Examples of these
are DigiCash, Debit Cards, Electronic purse etc.
Post Paid Tokens – are used with fund transfer instructions between the buyer
and seller. Examples – Electronic cheques, Credit cards etc.
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2. Credit Cards
A credit card is a small plastic card issued to users as a systemof
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payment.
 It allows its holders to buy goods & services based on the holder’s promise
to pay for these goods and services.

Extranet
• Extranet is an extended intranet that connects multiple
intranets through a secured tunneling internet.
Extranets act as a link to select individuals outside the
company by allowing them access to the information
stored inside the intranet.
Internet protocols are typically utilized by extranets so as to
provide browser navigation even though the network is
situated on a private server. A username and password system
can be configured to sectors of the content so as to prevent
users from accessing information they have no authorization
for.
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Virtual Private Network
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A Virtual private network (VPN) extends a private network across a public
network, such as the internet.
• It enables a computer to send and receive data across shared or public
networks as if it were directly connected to the private network.
This is done by establishing a virtual point-to-point connection through
the use of dedicated connections, encryption or a combination of the
two.
VPN allows employees to securely access their company’s intranet while
travelling outside the office.
Similarly, VPNs securely and cost effectively connect geographically
disparate offices of an organization, creating one cohesive virtual network.
• VPN technology is also used by ordinary Internet users to connect to proxy
servers for the purpose of protecting one’s identity.
•

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Types of VPN:
Remote Access VPN
Site-to-Site VPN
Remote Access VPN:- Remote access VPNs allow employees to
access their company’s intranet from home or while travelling outside the
office.
• Site-to-Site VPN:- Site-to-Site VPN allow employees in
geographically disparate offices to share on cohesive virtual
network.
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VPN systems may be classified by:-
The protocols used to tunnel the traffic. The
tunnel’s termination point location.
Whether they offer site-to-site or remote access connectivity.
• The level of security provided.

Types of Security Attacks
•
• Passive Attack
• Active Attack
•
• Passive Attack: In Passive attack a network intruder intercepts data travelling through
the network. A passive attack monitors unencrypted traffic. Passive attacks include traffic
analysis, monitoring of unprotected communications, capturing authentication
information such as passwords.
•
• Types of Passive Attacks:
a)Wire Tapping or Telephone Tapping: Telephone tapping is the monitoring of
telephone and internet conversations by a third party. Passive wire tapping monitors or
records the traffic.
• b) Port Scanner: A port scan can be defined as an attack that sends client requests
to a range of server port addresses on a host, with a goal of finding
an active port and exploiting a known vulnerability of that service.

Transactions
• Authentication:- Authentication ensures that the origin of an
electronic message is correctly identified. This means having the
capability to determine who sent the message and from where or
which machine. Without proper authentication, it will be impossible to
know who actually placed an order and whether the order placed is
genuine or not.
 Non-Repudiation:- Non-Repudiation is closely related to
authentication and this ensures that the sender cannot deny
sending a particular message and the receiver cannot deny
receiving a message.
 Access Control:- If access control is properly implemented,
many other security problems like lack of privacy will either be
eliminated or mitigated. Access control ensures only those that
legitimately require accesses to resources are given access and
those without valid access cannot have access.
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•

Secure Electronic
Transaction (SET)
• Secure Electronic Transaction (SET) is an open
protocol which has the potential to emerge as a
dominant force in the security of electronic
transactions.
 Jointly developed by Visa and MasterCard, in
conjunction with leading computer vendors such as
IBM, Microsoft, Netscape RSA, and GTE.
 SET is an open standard protocol for protecting the
privacy and ensuring the authenticity of electronic
transactions.
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•

Functions of SET
• Provide confidentiality of payment and ordering
information.
Ensure the integrity of all transmitted data.
Provide authentication that a card holder is a legitimate user of
a credit card account.
Provide authentication that a merchant can accept credit card
transactions through its relationship with a financial institution.
Ensure the use of best security practices and system design
techniques to protect all legitimate parties in an electronic
commerce transaction.
Create a protocol that neither depends on transport
security mechanisms nor prevents their use.
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Cryptography
Cryptography is the process through
which the messages are altered so that
their meaning is hidden from adversaries
who might intercept them.

•Types of Cryptography:-
Private Key Cryptography Public
Key Cryptography
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•
Private Key Cryptography
In private-key cryptography, the sender and receiver agree
beforehand on a secret private key. The plain text is somewhat
combined with the key to create the cipher text. The method of
combination is such that, it is hoped, an adversary could not
determine the meaning of the message without decrypting the
message, for which he needs the key.
Private-key methods are efficient and difficult to break. However,
one major drawback is that the key must be exchanged between
the sender and recipient beforehand, raising the issue of how to
protect the secrecy of the key
•

Digital Signature
• A digital signature is an electronic signature that can be
used to authenticate the identity of the sender of a
message or the signer of a document, and possibly to
ensure that the original content of the message or
document that has been sent is unchanged.
“Digital signature is a computer data compilation of
any symbol or series of symbols, executed, adopted
or authorized by an individual to be legally binded
equivalent to the individual’s handwritten signature”
•

Firewall
• Firewall is software or hardware based network security system
that controls the incoming and outgoing network traffic by
analyzing the data packets and determining whether they
should be allowed through or not, based on a rule set.
A firewall establishes a human barrier between a trusted,
secure internal network & another network that is not assumed
to be secure and trusted.
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.
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•

Managerial Issues
Managerial Issues
• Management is no longer worries about whether or not to adopt the
intranet/ extranet but is concerned about how to utilize them successfully
for business. Intranets/ Extranets are already two facts of
life in many large corporations. Thus management needs to review it’s
own company’s position in dealing with a verity of issues in installing the
internet/ extranet. The following are the guidelines for managerial issues:
1. Find the business opportunities by utilizing the intranet and
extranet: for example, consider connecting the customer, suppliers and
internal branches that are geographically dispersed.
2. Analyze whether the connectivity requirement suits the intranet and
extranet: it is mainly dependent upon whether the network is composed of
one LAN or multiple LANs. The former is suitable for internet and the latter
for extranet. Individual’s remote access should also be considered.

UNIT-IIII
Porter’s Five Forces Model, Value Chain
Model, Supply Chain Management, JIT,
Business Process Reengineering, Business
Process Management Call Centre
operations, Customer Relationship
Management (CRM).

Porter’s Five Force’s Model
1. Rivalry Among Existing Competitors
– Innovation; First to enter the market
2. Substitute Products
– Competitors with similar products
3. Powerful Suppliers
– Forward Integration
4. Powerful Buyers
– Backward Integration
5. Threat of Entry
– Advanced Knowledge
– Capital Requirement

Porter’s Five Forces
Model:
Michael Porter described a concept that
has become known as the “five forces
model”. This concept involves a
relationship between competitors within
an industry, potential competitors,
suppliers, buyers & alternative solutions
to the problem being addressed

Important Points of Value
Chain:
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• The Organization need to establish which of its inter
organizational relationships add to its competitive
advantage & which fail to achieve appropriate levels
of quality & price.
The Linkages in the value system have to be
managed.
The Physical Linkage involves good handling,
transport & warehousing
Value chain must be clear & understandable. The
essential stages of a value chain are: Pre-
•
•
•
•

Important Points of Value
Chain:
1. The Organization need to establish which of its inter
organizational relationships add to its competitive
advantage & which fail to achieve appropriate levels
of quality & price.
2. The Linkages in the value system have to be
managed.
3. The Physical Linkage involves good handling,
transport & warehousing
4. Value chain must be clear & understandable.
5. The essential stages of a value chain are: Pre-
sale, Execution, settlement & after-sales.

Business Process
Reengineering (BPR)
• Business Process Re-engineering is the fundamental rethinking and radical re-
design of business processes to achieve dramatic improvements in critical
contemporary measures of performance such as cost, quality, service and speed.
BPR means not only change but dramatic change & dramatic
improvements.
BPR involves the overhaul of organizational structures, management systems, job
descriptions, performance measurements, skill development, training and most
importantly the use of information technology.BPR impacts every aspect of how the
organization runs its business.
Change on this scale can cause results ranging from enviable success to
complete breakdown & failure.
A successful BPR can result in dramatic performance improvements, increase in
profits, better business practices, enormous cost reductions, dramatic
improvements in productivity & so on.
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BPM Life Cycle
BPM is a discipline consisting of 5
phases:-
1. Model
2. Automate
3. Execute
4. Monitor
5. Optimize

Customer Relationship
Management (CRM)
•
• CRM is a widely implemented strategy for managing
a company’s interactions with customers, clients &
sales prospects. It involves using technology to
organize, automate & synchronize business
processes.
The overall goal is to find, attract and win new clients,
nurture & retain those the company already has &
reduce the costs of marketing and client service.
• CRM is an iterative process that turns customer
information into positive customer relationship.

Goals of CRM
1. Provide better customer service.
2. Make call centers more efficient.
3. Increase sales.
4. Simplify marketing & Sales
processes.
5. Discovering new customers
6. Increase the quality of Information.
7. Improve customer retention.

Functions of CRM
• Identify factors important to clients.
• Promote a customer oriented
philosophy.
• Adopt customer based measures.
• Provide successful customer support.
• Handle customer complaints.
• Track all aspects of Sales.

Supply Chain
Management(SCM)
•
•
• Supply Chain Management is the oversight of materials,
information & finances as they move in a process from supplier
to manufacturer to wholesaler to retailer to consumer.
SCM involves coordinating & integrating these flows both within
& among companies.
SCM enables collaboration, planning, execution & coordination of
the entire supply chain, empowering companies to adopt their
supply chain processes to an ever changing competitive
environment.
• With better synchronization across the entire supply chain, the
business partners achieve the following major benefits:-
• Lower Inventories & therefore lower financing costs

Advantages of Supply
Chain Management
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Supply Chain Planning & Collaboration: Supply chain planning
functionality enables you to maximize return on assets & ensures a
profitable match of supply & demand.
Supply Chain Execution: SCM enables you to carry out supply chain planning
& generate high efficiency at the lowest possible cost.
• Supply Chain Visibility Design & Analytics: SCM gives you network- wide
visibility across your extended supply chain to perform strategic as well as day-to-
day planning.
Business Benefits: SCM can help you transform linear supply chain into an
adaptive network with the following benefits:-
Faster response to changes in supply & demand.
Increased customer satisfaction.
Compliance with regulatory requirements
Improved Cash flow
High margins

Just In Time (JIT)
• JIT means to produce goods and services when needed,
not too early and not too late. It is time based and often
has quality and efficiency targets.
It is a Japanese production management philosophy since
1970s, which allows having the right items of the right
quantity & quality, in the right place and at right time. This
is hand to mouth approach to production. The primary goal
of JIT is to achieve zero inventories within the organization
as well as throughout the entire supply chain.
The JIT system uses the PULL method of scheduling
material flow.
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Benefits of JIT
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• Increased Flexibility: A flexible workforce means that the operators must be
multi-skilled which is done through training. The worker should be free to move
from low demand to high demand areas.
Parts reduction: JIT continuously seeks to reduce inventory levels of raw
materials, work in progress and finished goods. Lower inventory means less
space & less chance of the product being obsolete, damaged or spoiled.
Increased Quality: When operating a JIT system, disruption has a major
impact, so quality problems need to be eliminated.
Benchmarking Quality Function Deployment and service design can
be used for service operations. Since employees need to learn the value
of providing defect free services.
• Simplicity of System: Product mix or volume changes as planned by the
Master Production Schedule (MPS) can be accomplished by
adjusting the no. of cards in the system. Production orders are
prioritized by the cards on a post. Production

PUSH & PULL System of
Production
• The term PUSH and PULL are used to describe two different
systems for moving work through a production process.
In traditional environments, a PUSH system is used. When work is
finished at a work station, the output is pushed to the next station or in
the case of final production it is pushed on to the final inventory.
Conversely, in a PULL system-each work station pulls the output from
the preceding station as it is needed; the output of final operation is
pulled by the customer demand or the master schedule. Thus in a PULL
system, work moves on in response to demand from the next stage in
the process, whereas in a PUSH
system, work moves on as it is completed without regard to the next
station’s readiness for the work. Consequently work may
•
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pile up at workstations that fall behind schedule because failure
or the detection of a problem of quality.

Call Centre
• A call centre or call center is a centralized office used
for the purpose of receiving or transmitting a large
volume of requests by telephone.
Inbound call centre is operated by a company to
administer incoming product support or information
inquiries from consumers.
Outbound call centers are operated for telemarketing,
solicitation of charitable or political donations, debt
collection and market research.
In addition to a call centre, collective handling of letter,
fax, live support software, and e-mail at one location is
known as a contact centre.
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Call Centre Operations

Call Centre Functions
• Workforce management (forecasting, )
• Real-time operational management
• Process review and optimization
• Performance reporting
• Human resources (recruiting and general
support)
• Information technology

UNIT-IV
Technology & Legal Issues in E-
Commerce, , IT Act 2000 , Legal Issues,
Copyrights, Patents, Trademarks & Domain
Names, Customs & Taxation laws

Legal Issues Related to E-
Commerce
• Privacy: Privacy means the right to be left alone and the right to
be free of unreasonable personal intrusions.
Information privacy is the “claim of individuals, groups or institutions to
determine for themselves when, and to what extent, information
about them is communicated to others.
Privacy Principles:-
a) Accountability: An organization is responsible for personal
information under its control and shall designate an individual or
individuals who are accountable for organization’s compliance with
the following principles.
Identifying purpose: The purposes for which personal
information is collected shall be identified by the organization
at or before the time the information is collected.
b)

Ethical Issues Related to E-
Commerce
• Ethics is a branch of philosophy that deals with what is considered to be right
and wrong. The spread of e-commerce has created many ethical situations.
e.g. the company monitoring email is very controversial. One group of people
may agree to this & one may disagree. Hence there are major differences
among companies and individuals with respect to what is right & wrong. There
are also differences regarding ethics among different countries. What is
unethical in one culture may be perfectly acceptable in another.
Ethical issues can be categorized as:-
Privacy: Collection, storage & dissemination of information about
individuals.
Property: Ownership & value of information & intellectual property.
Accuracy: Authenticity, fidelity & accuracy of information collected &
processed.
• Accessibility: Right to access information & payment of fees to
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Cyber Laws
ambit of cyber law”.
• LAWS OF THE INTERNET & THE WORLD
WIDE WEB
• The growth of cyberspace has resulted in the
development of a new & highly specialized branch
of law called cyber laws.
• “Cyber Law is a term which refers to all the legal and
regulatory aspects of Internet and the World Wide
Web. Anything concerned with or related to legal
aspects or issues concerning any activity in
Cyberspace comes within the

Cyber Laws in India
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•
•
•
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• In May 2000, both the houses of the Indian parliament passed the Information
Technology Bill. The Bill received the consent of president in August, 2000 and
came to be known as the Information Technology Act; 2000.It was enacted on
7thJune 2000 & was notified in the official gazette on 17th Oct, 2000. It is
applicable to whole of India.
The Information Technology (IT) Act 2000 aims to provide a legal & regulatory
framework for promotion of e-commerce & e-governance.
Some highlights of the Act are listed below:-
Chapter-II: of the Act specifically stipulates that any subscriber may
authenticate an electronic record by affixing his digital signature.
• Chapter-IV: of the Act gives a scheme for regulation of Certifying
authorities.
Chapter IX: of the Act talks about penalties & adjudication for various
offenses.
Chapter XI: of the Act talks about various offenses & the said offenses shall be
investigated by a police Officer not below the rank of the Deputy
Superintendent of police.

Information Technology (IT)
Act-2000
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• The Information Technology Act 2000 aims to provide a legal & regulatory framework
for promotion of e-commerce & e-governance. It was enacted on 7thJune 2000 and
was notified in the official gazette on 17th Oct 2000. It is applicable to whole of India.
Major provisions contained in the IT Act 2000 are:-
•
•
•
•
• Extends to the whole of India
• Electronic Contracts will be legally valid
• Legal recognition of digital signatures.
• Digital signatures to be effected by use of asymmetric crypto system & hash
function.
Security procedure for electronic records & digital signature.
Certifying authorities to get license to issue digital signature certificates.
Various types of computer crimes defined & stringent penalties provided under the
Act.
Appointment of Adjudicating Officer for holding inquiries under the Act.

Civil Offences Stipulated by
IT Act, 2000
• Copy or extract any data, database
• Unauthorized access & downloading files
• Introduction of Virus
• Damage to computer system & computer
network
• Disruption of computer, computer network
• Denial to authorized person to access
computer
• Providing assistance to any person to facilitate
unauthorized access to a computer

Information Technology
Act, 2008
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r Studies & School of Law
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The IT Act, 2008 has been signed by the President of India on February 5, 2009.
Some of the salient features of the Act are as follows:-
The term “digital signature” has been replaced with “electronic
signature” to make the Act more technology neutral.
A new section has been inserted to define “communication device” to mean cell
phones, personal digital assistance or combination of both or any other device
used to communicate, send or transmit any text, audio or image.
A new section has been added to define “cyber cafe” as any facility from
where the access to the Internet is offered by any person in the ordinary
course of business to the members of the public.
• In view of the increasing threat of terrorism in the country, the new amendments
include an amended section 69 giving power to the state
to issue directions for interception or monitoring of decryption of any

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E-Commerce BCA 305

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