1. Submitted By:
Mohit Bairwa, BCA III Year
Bachelor of Computer Application
Dezyne Eâcole College, Ajmer
www.dezyneecole.com
Information Technology
Electronic-Commerce
2. Acknowledgement
I Am Thankful To Dezyne Eâcole College To Help In Making This Project On E-Commerce.
A Special Thanks To Ms. Jyoti Phulwani to Guide Us Step By Step in the Making of This Project Report.
Thanking you
Mohit Bairwa
Bachelor of Computer Application
Third Year
3. Contents
1. Chapter 1
ďˇ Introduction
2. Chapter 2
ďˇ Electronic Commerce And World Wide Web
3. Chapter 3
ďˇ Architectural Framework for Electronic Commerce
4. Chapter 4
ďˇ Technology Behind The Web
5. Chapter 5
ďˇ Network Security and Firewalls
6. Chapter 6
ďˇ Electronic Commerce Companies
7. Chapter 7
ďˇ A Pictorial Representation of E-Commerce
8. Chapter 8
ďˇ Conclusion
4. Chapter-1
Introduction:
Every individual or company that wants to make money and become the next Microsoft needs to understand the market potential, business implication and technological foundation of electronic commerce but what is electronic commerce everybody is talking about? How does it affect the organizations way of doing business what sort of technical and business are needed to be successful?
Companies and consumers are discovering that global networking and other technological innovations are powerful assists if used as competitive weapons in day- to-day activity. E-commerce is associated with the buying and selling of informationâs products and services via computer network today.
Consumer desire are very hard to predict, pin point or decipher of electronic markets, whose shapes, structure and population are still in early stages. Needs envisioned include entertainment on demand including five hundred channel TV video on demand, games on demand, electronic retailing via catalogs and kiosk and home shopping networks.
In future, viewers will decide what they want to see and when they want to participate a successful market places are expected to those that cater to consumerâs loneliness, boredom, education and career. In a highly competitive society, where neighbors seldom talk to one another these outlets give consumer someone to tough after going home.
Letâs take a look at the changing conditions in the ânew economyâ with respect to the retail industry. Consumers are pushing retailers to the wall demanding lower prices better quality a large section of in-season goods. Retailers are scrambling to fill the order. They are slashing back-office costs, reducing profit margin, reducing-cycle time buying more wisely and making huge investments in technology. They are revamping distribution channels to make sure that warehouses costs are down by reducing their average inventory levels and coordinating the consumer demand and supply pattern.
In the push to reduce prices more and more retailers are turning to overseas supplier in part because of cheaper labor costs. Retail are the immediate line of fire and had to do the cost cutting. They put the pressure on the manufacturer and then to the supplier end of the pipeline.
Electronic commerce is forming companies to rethink the existing ways of doing target marketing; relationship marketing and even event marketing. Adaptation would include moving towards computerized âpaperlessâ operations, to reduce trading costs and facilitate the adoption of new business process. Japanese approach JIT (just in time), total quality control and quality circles are focused now for delivery of goods through electronic commerce.
5. Chapter-2
Electronic commerce and the world-wide-web
We have broadly defined electronic commerce as a modern business methodology that address the desire of firms, consumers, and management to cut costs while improving the quality of goods and increasing the speed of services. The need for electronic commerce stems from the demand within business and government to make better use of computing, that is, better apply computer technology to improve business process and information exchange both within an enterprise and across organizations. In short electronic commerce appears to be and integrating force that represent the digital conversions of twenty-first century business application and computing technologies.
Electronic commerce applications emphasis the generations and exploitation of new business opportunity and to use the popular buzzword âgenerate business valueâ. For instance, when buyer- seller transaction occur in the electronic market place, information is accesses, observed, arrange and sold in different ways in fact, the information about a product of service is separated from the physical product or services and has become important on its own. In some cases, the information can become as crucial as his actual product or services in term of its effect on a companyâs in short, information ways business transactions are creating new ways of doing business and even new type of business.
Electronic commerce application are quite varied. In its most common form, E- commerce is also used to donate the paperless exchange of business information using EDI, electronic mail (E-mail) electronic bulletin boards, electronic funds transfer (EFT) and similar technology. These technologies are normally applied in high-pay of areas, recognizing that paper-handling activity usually increase expense without adding value. On the other hand the term Electronic Commerce is used to describe a new online approach to perform traditional functions such as payment and funds transfer, order entry a processing, invoicing, inventory management, cargo tracking, electronic catalogues and point-of-sale data gathering. More recently, company have realized that the advertising, marketing and customer support functions are also part of electronic commerce application domain. These business functions act as initiator to the entire order management cycle that incorporates the more established motions of electronic commerce.
In short, what we are witnessing is the use of term electronic commerce as an umbrella concepts to integrate a wide range of new and old applications.
6. Despite the changes taking places, business have three goals: stay competitive, improve productivity and deliver quality service. These goals are the guiding buoys for firms plotting their course in the turbulent water of electronic commerce. There are other factors that companies need to keep in mind. First, most company have already made enormous information technology investments to automate their key internal processes such as purchasing, invoicing and other similar functions. So, some aspects of the technological infrastructure for electronic commerce are already in place. The challenge now become: how to effectively leverage this investment. Second, prices for computer hardware and network equipment continue to fall, marking information technology an appealing investments for many businesses, especially when itâs used for high-impact applications such as linking their distributed operations. However, investments without a clear idea of the electronic commerce architecture being built would be akin to driving with blinders on. As a result, companies that have decided that electronic commerce applications represent one of the best strategic investments they can make must first exert some effort to understand the technology underlying electronic commerce applications.
At first glance, it appears that messaging based technologies such as EDI and mail- enable applications, combine with database and information management service, form the technical foundation for effective electronic commerce solutions.no single one of these technologies can deliver the full potential of electronic commerce, however. What we require is and integrated architecture the likes of which has never been seen before. This integrated architecture is emerging in the form of the World Wide Web (WWW). As electronic commerce becomes more mature, we are beginning to see sophisticated application being developed on WWW. Technically and commercially, the www client-server model seems poised to become a dominant technology.
Electronic Transfer Interchange
ctronic Document Interchange
Electronic Document Interchange (EDI)
Electronic Funds Transfer (EFD)
Corporate Digital Library
Information Sharing
Collaborative Work
Electronic Publishing
Marketing, Advertising
Sales, Customers Support
Electronic Messaging
Fax
E-mail
7. Chapter-3
Architectural Frame work For Electronic Commerce
The software frame work necessary for building electronic commerce application is little understood in existing literature. In general frame work is intended to define and create tools that integrate the information found in todayâs closed system and allow the development of E-Commerce applications.it is important to understand that the aim of architectural frame work itself is not to build new database management systems, data repository, computer languages, software agent- based transaction monitors or communication protocols. Rather, the architecture should focused on synthesizing the diverse resource already in place in corporation to facilitate the integration of data and software for better applications.
We propound that the electronic commerce applications architecture consist of six layers of functionality or services: (1) Applications; (2) Brokerage Services, Data and Transaction Management (3) Interface and Support layers;(4) Secure Messaging and Electronic Document Interchange;(5)Middleware and Structure Document Interchange; and(6) Network Infrastructure and Basic communication services.
Application Services
Customer-to business
Business-to- business
Intra-Organization Brokerage and Data Management
Order Processes âMail-Order Purchasing
Payment Scheme-electronic cash
Clearinghouse and Virtual mall Interface Layer
Interactive Catalog
Directory Support Function
Software Agents Secure Messaging
Secure Hyper Text Transfer Protocol
Encrypted E-mail, EDI
Remote Programming(RPC) Middleware Services
Structure Documents(SGML,HTML)
Compound Document(OLE, OpenDoc) Network Infrastructure
Wireless-Cellular, Radio, PCS
Wire line - POTS, Coaxial, Fiber Optic
These layers cooperate to provide a seamless transition between todayâs computing resources and those of tomorrow by transparently integrating information access and exchange within the context of the chosen application. As seen in above figure, electronic commerce application are based on several elegant technology. But only when they are integrated do they provide uniquely powerful solution.
8. In the ensuing discussion of each of these layer, we will not elaborate on the various aspects of the network infrastructure that transports information.
1. Electronic Commerce Application Services
The application service layers of E-commerce will be comprised or existing and future applications built on the innate architecture. Three distinct classes of electronic commerce application can be distinguished: Customer-to-Business, Business-to- Business and intra organization.
ďˇ Customer-to-Business Transactions:
We call this category market place transaction. In a marketplace transaction, customers learn about products differently through electronic publishing, by them differently using electronic cash and secure payment systems, and have them delivered differently. Also, how customers allocate their loyalty may also be different.
In light of this, organization itself has to adapt to a world where the traditional concepts of brand differentiation no longer hold-where âqualityâ has a new meaning , where content may not be equated to âproductâ, where âdistributionâ may not automatically
Manufacturing and Production
Engineering and Research
Accounting Finance and Management
Advertising Sales Customer Services
Procurement, Distribution and Logistic
Customer Oriented Electronic Commerce
Customer
Global Supplier
Classic EDI
Internal Publishing
Private Commerce
9. mean âphysical transportâ. In this new environment, brand equity can rapidly evaporate forcing firms to developed new ways of doing business.
ďˇ Business-to-Business Transaction:
We call this category market-link transactions. Here, business, government and other organizations depend on Computer-to-Computer communication as a fast, an economical and a dependable way to conduct business transaction. Small companies are also beginning to see the benefits of adopting the same methods. Business-to Business transactions include the use of EDI an electronic mail for purchasing goods and services, buying information and consulting services, submitting request for proposal and receives proposals.
For Example, the current accounts payable process occurs through the exchange of paper documents. Each year the trading partners exchange millions of invoices, checks, purchase order, financial reports and other transactions. Most of the documents are in electronic form at their point of origin but are printed and key-entered at the point of receipt. Current manual process of printing, mailing and rekeying is costly, time consuming and error-prone. Given this situation and faced with the need to reduce costs, small businesses are looking towards electronic- commerce as a possible savior.
ďˇ Intra-Organizational transactions:
We call this category market driven transactions. A company becomes market driven by dispersing throughout the firm information about its customers and competitors; by spreading strategic and tactical decision making so that all units can participate; and by continuously monitoring their customer commitment by making improve customer satisfaction an ongoing objective. To maintain the relationships that are critical to delivering superior customer value, management must pay close attention to service, both before and after sales.
2. Information Brokerage and Data Management:
The information brokerage and management layer provide service integration through the notion of information brokerages, the development of which is necessitated by the increasing information resource fragmentation. We use the notion of information brokerage to represent an intermediary who provides service integration between customer and information providers, given some constraint such as a low price, fast service or profit maximization for a client.
Information brokers, for example are rapidly becoming necessary in dealing with the voluminous amounts of information on the networks. As on-line database migrate to consumer information utilities, consumers and information professionals will have to keep up the knowledge and ownership of all these systems. Whoâs got what? How do you use it? What do they charge? Most professionals have enough trouble keeping track of files of interest on one or two database services. Will all the complexity associated with large number of online database or service bureaus, itâs impossible to accept humans to do the searching. It will have to be software programs-information
10. brokers or software agents, to use the most popular term-act on searcher behalf. Information brokerage does more than just searching.
3. Interface and Support service:
The third layer, interface and support services, will provide interfaces for electronic commerce applications such as interactive catalogues and will support directory services-function necessary for information search and access. These two concepts are very different. Interactive catalogues are the customized interface to consumer applications such as home shopping. An interactive catalog is an extension of the paper-based catalogs and incorporates additional features such as sophisticated graphics and video to make the advertising more attractive.
Directories, on the other hand, operate behind the scenes and attempt to organize the enormous amount of information and transaction to generate to facilitated electronic commerce. Directory services database make data from any server appear as a local file. A classic example of a directory is the telephone White Pages, which allows us to locate people and telephone numbers. In the case of electronic commerce, directories would play an important role in information management functions. For instance, take the case of buying an airline ticket with several stock overs with a caveat that the time between layovers be minimized. This search would require several queries to various on-line directories to find empty seats on various airlines and them the availability of seats would be coordinated with the amount of time spend in the airport terminals.
4. Secure Messaging And Structured Document Interchange Services:
The importance of the fourth layer, secure messaging, is clear. Everyone in business knows that electronic messaging is a critical business issue. Consider a familiar business scenario: you hand over an urgent fax on Monday and find out on Tuesday that itâs still sitting on your fax operatorâs desk. What happened? The line was busy and he thought he would try again later. On, the number was wrong, but he forgot to laid you know. Or you are in London and you need to send a spreadsheet that details a marketing plan for a product introduction strategy to co-worker in New-York. This must be done today, not tomorrow when the courier service good deliver. There is a solution to these common and frustrating problems. Itâs called integrated messaging: a group of computer services that through the use of a network send, receive and combine messages, faxes and large data files. Some better known examples are electronic mail, enhance fax and electronic data interchange.
Broadly define, messaging is a software that sits between the network infrastructure and the clients or electronic commerce applications, masking the peculiarities of the environment. Others define messaging as a framework for the total implementation of portable applications, divorcing you from the architectural primitives of your system. In general, messaging products are not applications that solve problems; they are more enablers of the application that solve problems.
Messaging services, offer solution for communicating non-formatted (unstructured) data such as purchase orders, shipping notices and invoices. Unstructured messaging
11. consist of fax, e-mail and form based system likes Lotus Notes. Structured documents messaging consists of the automated interchange of standardized and approved messages between computer applications, via telecommunication lines. Examples of structured document messaging include EDI.
Messaging is gaining momentum in electronic commerce and seems to have many advantages. It supports both synchronous (immediate) and asynchronous (delayed) message delivery and processing. With asynchronous messaging, when a message is send, work continues (software doesnât wait for a response). This allows the transfer of messages through store-and-forward methods.
The main disadvantages of messaging are the new types of applications it enables- which appear to be more complex, especially to traditional programmers-and the jungle of standardâs in involves. Because of the lack of standards, there is often no interoperability between different messaging vendors leading to islands of messaging. Also, security, privacy and confidentiality through data encryption and authentication technique are important issue that need to resolve for ensuring the legality of the message-based transaction themselves.
5. Middleware Services:
Middleware is a relatively new concept that emerged only recently. Likes so many other innovations, it came into being out of necessity. Users in the 1970âs when vendors delivered homogenous systems that worked didnât have a need for middleware. When conditions changed-along with the hardware and the software the organizations couldnât cope: The tools were inadequate, the backlog was enormous, and the pressure was overwhelming. And, the user were dissatisfied. Something was needed to solve all the interface, translation, transformation and interpretation problems that work driving applications developerâs crazy.
With the growth of networks, client-server technology, and all other forms of communicating betweenamong unlike platforms, the problems of getting all the pieces to work together grew from formidable to horrendous. As the cry for distributed computing spread, users demanded interaction between disk similar systems, networks that permitted shared resources, and applications that could be accessed by multiple software programs. In simple terms, middleware is the ultimate mediator between diverse software programs that enables them talk to one another.
6. Transparency:
Transparency utilize that user should be unaware that they are accessing multiple systems. Transparency is essential for dealing with higher-level issues than needed physical media and interconnection that under line network infrastructure is in charge of. The ideal picture is one of a âvirtualâ network: a collection of work âgroup, departmental, enterprise and inter enterprise LANâs that appears to the end users or client application to be a seamless and easily accessed whole.
Transparency is accomplished using middleware that facilitated a distributed computing environment. This gives users and applications transparent accessed to
12. data, computation, and other resources across collections of multivendor, heterogeneous system. The strategic architectures of every major system vendor are now based on some form of middleware. The key to realizing the theoretical benefit of such an architecture is transparency. Users need not spend their time trying to understand where something is. Nor should application developers have to code into their applications the exact location of resources over the network. The goal is for the applications to send a request to the middleware layer, which then satisfied the request any way it can, using remote information.
7. Transaction Security and Management:
Support for transaction processing (TP) is fundamental to success in the electronic commerce market. Security and management are essential to all layers in the electronic commerce model. Transaction integrity must be given for businesses that cannot afford any loss or inconsistency in data. For electronic commerce, middleware provides the qualities accepted in the standard TP system: the so-called ACID properties (Atomicity, consistency, isolation and durability).
World-Wide-Web as the Architecture
Electronic commerce depends on the unspoken assumption that computers co- operate efficiency for seamless information sharing. Unfortunately, this assumption of interoperability has been supported by the realities of practical computing. Computing is skill a world made up of many technical directions, product implementation and competing vendors. This diversity, while good for information, causes problem as the E-commerce application try to impose a certain discipline on the proliferating computers and networks. It is ironic that real effect of computing is all too often the prevention of data sharing due to incompatibility-architectures, data formats and communications protocols.
What does the WEB Encompass?
The web has become an umbrella for a wide range of concepts and technologies that differ markedly in purpose and scope. These include the global hypertext publishing concepts, the universal reader concept and the client-server concept.
The global hypertext publishing concepts promotes the idea of the seamless information world in which all on-line information can be accessed and retrieved in a consistent and simple way. To access information in the seamless world, we will need the ability to address many types of data- text files, images, sound files, animation sequences.
The universal readership concept promotes the idea that, unlike the segmented application of the past, we can use one application- a universal (or common) user interface-to read a variety of documents. This concepts implies that one informationâs is published it is accessible of any type of computer, in any country, and that any (authorized) person nearly needs to use one simple program to access it. This
13. accomplished in the web by using a core browser or application that is augmented by supporting applications. The core browser implements only minable functionality and attempts to off load more specialized work onto the supporting applications.
The client-server concept allows the web to grow easily without any centralized control. Anyone can published information and anyone (as long as he or she authorized) can read and download it. The publishing information requires a server program, and reading data requires the client browser. All the clients and all the servers are connected to one another by Internet. The various standard protocols allows all clients to communicate will all servers. In practice the web hands or a number of essential concepts, including the following:
ď The addressing scheme known as uniform resource locator (URL) makes the hyper media world possible despite many different protocols.
ď A network protocol known as hypertext transfer protocol (HTTP) used by client browsers and servers of first performance and features not otherwise available.
ď A mark-up language (HTML), which every web client is required to understand, is used for the representation of hypertext documents containing text, list boxes and graphics information across the net.
14. Chapter-4
Technology Behind the web
Information providers (or publishers) run programs (called servers) from which the browsers (clients) can obtain information. These programs can either be Web servers that understand the hypertext transfer protocol (HTTP), âGatewayâ programs that convert an existing information format to hypertext, for a non-http server that Web browser can access-anonymous FTP or Gopher servers.
Web servers are composed of two major parts: the hypertext transfer protocol for transmitting documents between servers and clients and the hypertext markup language (HTML) format for documents. The link between HTML files and the HTTP servers is provided by the uniform resource locator (URLâs).
Uniform Resource Locator
The documents that the browsers display are hypertext that contains pointers to other documents. The browsers let you deal with the pointers in a transparent way-select the pointer and you are presented with the text to which it points. This pointer is implemented using a concept that is central to Web browsers: Uniform Resource Locator (URLâs). One way to think about URLâs is to use the library and location on a shelf as a metaphor. A URL for a digital library would be a unique call number that provides an exact location of every book in the world, including the country, city, street and library shelf locations.
In practice, URLâs are the strings used as addresses of objects (documents, images) on the Web. Think of them as analogous to your e-mail address. Just as your address is unique and may be used by any other Internet user to send your mail without knowing exactly where you are, a URL marks the unique locations on the Internet where a file or services can be found.
URLâs follow a fairly consistent pattern. The first part describes the type of resource; the second part gives the name of the server housing the resource; and the third part gives full file name of the resource. URLâs are universal in that they provide access to a wide range of network services which required separate application in the past. For a new network protocol one can easily form an address as the set of parameters necessary to retrieve the objects. If these parameters are encoded into concise string, with a prefix to identify the protocol and encoding, one has new URL scheme. Take a look at the URLâs formats below:
15. FTP : ftp://server.address/complete.file.name
Gopher : gopher://server.address:port/directory/filename
TELNET : telnet://server.address:port
HTTP : http://server.address:port/homepage.html
News : news:misc.stocks.invest.
These are URL for Internet news articles and newsgroups (the NNTP protocol) and for HTTP archives, for telnet destinations, e-mail addresses and so on. The same can be done for names of objects in a given name space. For example, the URL of the main page for the web project happens to be: http://web.w3.org/hypertext/web/theproject.html.The prefix âhttpââ in the preceding example indicates the address space and defines the interpretation of the rest of the string. The HTTP protocol is to be used, so the string contains the address of the server to be contacted and a sub string to be passed to the server.
As noted earlier, different protocols use different syntaxes, but they do have a small amount in common. For example, the common URL syntax reserves the solidus (/) as a way of representing hierarchical space, the pound label (#) as a way of pointing inside the document and question mark (?) as a separator between the address of an object and a query operation applied to it. Hierarchical spaces are useful for hypertext, where oneâ work âmay be spilt up into many interlinked documents. The # allows relative names to exploit the hierarchical structure and allows links to be made within the wok independent of the higher parts of the URL, such as the server name.
URLs are central to the Web architecture. The fact that it is easy to address an object on the Internet is essential for the system to scale and for the information space to be independent of the network and server topology.
16. Chapter-5
Network Security and Firewalls
The ability to conduct business on a public network has strong attraction-and the potential for big savings. Security and confidentiality are essential, however before businesses can conduct financial transactions over the Internet and a lack of widespread security majors remains at this time. At present, credit card numbers, financial records and other important information are not encrypted and can be intercepted by any savvy Internet hacker.
The discussion of security concerns in electronic commerce can be divided into two broad types:
1. Client-Server security uses various authorization methods to make sure that only valid users and programs have access to information resources such as databases. Access control mechanism must be setup to ensure that properly authenticated user are allowed access only to those resources that they are entitled to use. Such mechanism includes password protection, encrypted smart cards, biometrics and firewalls.
2. Data and transaction security ensures the privacy and confidentiality in electronic messages and data packets, including the authentication of remote user in network transaction for activities such as on-line payment the goal is to defeat any attempt to assume another identity while in called with electronic mail or other forms of data communication. Preventive measures include data encryption using various cryptographic methods.
ďˇ Data and Message Security
The lack of data and message security on the Internet has become a high profile problem due to increasing number of merchants trying to spur commerce on the global network. For instance, credit card numbers in their plain text form create a risk when transmitted across the Internet where the possibility of the number falling into the wrong hands is relatively high. Would you be willing to type in your credit card number knowing the risk? Even worse, would you expose your customers to that risk? Just the thought of âsnifferâ programs that collect credit card numbers en masse is enough to keep merchants away from on-line shopping given the possible lawsuits and other liabilities issues. In short, the lack of business transaction security is widely acknowledge as a major impediment to widespread E-commerce.
ďˇ Encrypted Documents and Electronic Mail:
E-mail users who desire confidentiality and sender authentications are using encryption. Encryption simply intended to keep personal thoughts personal. Some
17. users are already using Pretty Good Privacy (PGP); others are starting to use Privacy Enhanced Mail (PEM).
E-mail is typically encrypted for the reason that all network correspondence is open for eavesdropping. Internet e-mail is obviously is far less secure than the postal systems, where envelopes protect correspondence from casual snooping. At the glance at the header area of any E-mail message, by contrast, will show that it has passed to a number of nodes on its way to you. Every one of these nodes present the opportunity for snooping.
30. Chapter-8
Conclusion
E-commerce is growing tremendously. A lot of companies have joined between the period July and August. Online retail is still a tiny spot in Indiaâs retail market of about $500 billion per year, but it is growing at a quick pace. A study by retail consultancy Techno Park predicts Indiaâs e-tailing market will reach $32 billion by 2020 from 42.3 billion in 2014.
Ethnic Indian cloth and casual wear are favorite products but unusual products like pets-too are being offered online. With the huge growth that e-commerce has witnessed in recent times analysts like Devangshu Dutta, says there is scope for more players to come in. but some also warn about the risks the space is fraught with, as only a few may have chances of making it big. They also see consolidation in the sector going forward.
31. Bibliography
ďˇ Frontier of Electronic-commerce by Ravi Kalakota and Andrew B.Whinston.
ďˇ Big E-commerce deals stir up sector-economic times
ďˇ www.flipkart.com
ďˇ www.yepme.com