The document is a project report submitted by Shubham Garg, a 3rd year BCA student at Dezyne E'cole College in Ajmer, India. It discusses electronic commerce (e-commerce) and is organized into 8 chapters that cover topics such as the introduction to e-commerce, the role of the World Wide Web, the architectural framework for e-commerce, and security and technology aspects of e-commerce. The student thanks his college and project guide for their assistance in completing the project report.

1. Submitted by-
Shubham Garg, BCA-3rd year.
Dezyne E’cole College, Ajmer.
WWW.dezynee’cole.com
Information Technology

2. Acknowledgment
I Am Thankful To Dezyne E’Cole 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
Shubham Garg
Bachelor of computer Application
2014

3. Content
1. Chapter 1
 Introduction
2. Chapter 2
 Electronic Commerce and the World Wide Web
3. Chapter 3
 Architectural Framework for Electric Commerce
4. Chapter 4
 Technology behind the Web
5. Chapter 5
 Network Security and Firewalls
6. Chapter 6
 Electronic Commerce Companies
7. Chapter 7
 Pictorial Representation- E-Buying Methodology
8. Chapter 8
 Conclusion

4. Chapter 1
Introduction
Every individual a company that wants to make money and become the next Microsoft needs to understand the market potential, business implications 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 & 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 information’s product and service via computer network today.
Consumers desire are very hard to predict, pin point or decipher of electronic markets, whose shapes, structure and population are still in really stages. Needs envisioned include entertainment on demand including five hundred channel T.V. video on demand, games on demand, electronic retailing via catalos and kiosk and homes shopping networks.
In future, viewer will decide what they want to see and when they want to participate a successful market places are expected to those that cater to consumer’s lowliness, boredom, education and career. In a highly competitive society, neighbor seldom talk to one another these outlets give consumers someone to toughs after going home.
Let’s take a look at the changing condition in the “new economic” with respect to the retail industry. Consumer are pushing retails to the wall demanding lower prices better quality a large section of season of goods. Retailers are scrambling to fill the order. They are slashing back office cost, reducing profit margin, reducing cycle time buying more wisely and making huge investment in technology. They are revamping distributed channel to make sure that warehouses costs are down by reducing their average invert level and coordinating the consumer demand and supply pattern.
In the push to reduce pricing more and more retails are turning to overseas supplier in part of cheaper labour costs. Retail are immediate line of fire and had to do the cost cutting. They put the pressure on the manufacture and then to the supplier end of pipe line. E-commerce is forming companies to rethink the existing ways of doing target marketing; relations marketing and even event marketing.
Adaption would include moving towards computerized “paperless” operations, to reduce trading costs and facilities the adaption of new business process. Japanese approach JIT (just and time), total quantity control and quality circle are focus 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 modem business methodology that address the desire of firms, consumers and management to cut costs while improving the quality of goods & inversing the speed of services. The need for electronic commerce stems from the demand within business government to make bustles 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 an integration force that represents the digital converge of twenty- first century business application and computing technologies.
Electronic commerce application emphasis the generation and exploitation of new business opportunity and to use the popular buzzword” generate business value”. For instance, when buyer-seller transaction occur in the electronic market place, information is access, observe, 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 it own.in some case, the information can become as crucial as his actual product of services. In term of its effects on a company’s in short, information ways business transaction are creating new ways of doing business and even new type of business.
Electronic commerce applications are quite varied. In its most common from, 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 other similar technologies. These technologies are normally applied in high- payoff areas, recognizing that paper handling activities usually increases expenses without adding value. On the other hand, the electronic commerce is used to describe a new online approach to perform traditional functions such as payments and funds transfer, order entry and processing, invoicing, inventory management, cargo tracking, electronic catalogues and point –of –sale data gathering. More recently, companies have realized that the advertising, marketing and customer support functions are also part of electronic commerce application domain. The business function act as initiators to the entire order management cycle that incorporates the more established notions of electronic commerce as an umbrella concept to integrate a wide range of new and old applications.

6. Despite the change taking place, business have three goal: 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 factor that companies need to keep in mind. First, most companies have already made enormous information technology investments to automate their key internal process such as purchasing, invoicing and other similar functions. So, some aspects of technological infrastructure for electronic commerce are already in place. The challenge now becomes: 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 business, especially when it’s used for high impact applications such as linking their distributed operations . However, investment without a clear idea of the electronic commerce architecture being built would be akin to driving with blinders on. As a result ,companies that decided that electronic commerce applications represents 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 enabled applications combined with database and information management services. 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 an 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 nature, we are beginning to see sophisticated applications being developed on the www. Technology and commercially, the www client –server model seems poised to become a dominant technology.
Information Sharing
Electronic Commerce
Marketing Advertising
Electronic Publishing
Sales Customer Support
Electronic Messaging
E-mail
Fax
Electronic Document Interchange
Corporate
Digital
Library
Electronic Data Interchange (EDI)
Electronic Funds Transfer (EFT)
Collaborative Work

7. Chapter 3
Architectural Framework for Electric Commerce
We propound that the electronic commerce applications architecture consists of six layers of functionality or services: 1. Applications; 2. Brokerage services, data or transaction management; 3.Interface and support layers; 4. Secure messaging and electronic document interface; 5. Middleware and structured document interchange; and 6. Network infrastructure and basic communication services.
Application services
Customer-to business
Business –to- business
Intra- organizational Brokerage and data management
Order processing-mail-order houses Interface layer
Interactive catalogue
Directory support functions
Software agent Secure messaging
Secure hypertext transfer protocol
Encrypted e-mail, EDI
Remote programming (RPC) Middleware services
Structured documents(SGML, HTML)
Compound documents(OLE, Open DOC) Network infrastructure
Wireless- cellular, radio, PCS
Wireless – POTS, coaxial, fiber optical
These layer cooperate to provide a seamless transition between today’s computing resources and those of tomorrow by transparently integrating information access and exchange within the context of the chosen application. As seem in above fig, electronic commerce applications are based on several elegant technologies. But only when they are integrated do they provide uniquely powerful solutions.
In the ensuing discussion of each of these layers, we will not elaborate on the various aspects of the network infrastructure that transports information.
Electronic Commerce Application Services:
The application services layer of e-commerce will be comprised of existing and future applications built on innate architecture. Three distinct classed of electronic commerce applications can be distinguished: customer-to- business, business-to-business and intra organizational.

8. Customer- to- Business Transaction:
We call this category marketplace transaction. In a marketplace transaction, customer learn about products differently through electronic publishing, buy then differently using electronic cash and secure payment systems, and have then delivered differently. Also how customers allocate their loyalty may also be different.
In light of this, organizations itself has to adapt to a world where the traditional concepts of brand differentiation no longer hold-where “quality” has a new meaning, where “content” may not be equated to “product”, where distribution may not automatically mean “physical transport”. In this new environment, brand equity can rapidly evaporate forcing firms to develop new ways of doing business.
Business-to -Business Transactions:
We call this category market-link transactions. Here, business, government and other organizations depend on computer-to-computer communications as a fast, an economical and a dependable way to conduct business transactions. Small companies are also beginning to see the benefits of adopting the same methods. Business-to business transactions include the use of EDI and Electronic mail for purchasing goods and services, buying information and consulting services, submitting requests for proposals and receive proposals.
Manufacturing and Production
Accounting, Finance and Management
Procurement, Distribution and Logistics
Advertising Sales Customer Service
Private Commerce
Internal Publishing
Customer-oriented Electronic commerce
Customer
Engineering and Research
Classic EDI
Global Suppliers

9. Intra-organizational Transactions:
We call this category market-driven transaction. 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 participates; and by continuously monitoring their customer commitment by making improved customers 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.
For example, the current accounts payable process occurs through the exchange of paper documents. Each year the trading parents exchange millions of invoices, checks, purchase orders, 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 receipt. The 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 business are booking towards electronic commerce as a possible savior.
Information Brokerage and Management:
The information brokerage and management layers 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 customers 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 migration to consumer’s information utilities consumers and information professionals will have to keep up the knowledge and ownership of all these systems. Who’s 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 on-line database and service bureaus, it’s impossible to except humans to do the searching. It will have to be software programs – information brokers or software agents, to use the more popular term – that act on the searches behalf. Information brokerage does more than just searching.
Interface and Support Services:
The third layer, interface and support services, will provide interfaces for electronic commerce applications such as interface catalogues and will support directory services- functions necessary for information search and access. These two concepts are very different. Interactive catalogues are the customized interface to consumer applications such home

10. shopping. An interactive catalogues is an extension of the paper-based catalogue and incorporates additional features such as sophisticated graphics and video to make the advertising more attractive.
Directory on the other hand, operate behind the sense and attempt to organize the enormous amount of information and transactions generated to facilitate 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 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 tickets with several stopovers 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 then the availability of seats would be coordinates with the amount of time spent in the airport terminals.
Secure Messaging and Structure Document Interchange Services:
The importance of the fourth layer, secure messaging, is clear. Every in business knows that electronic messaging is a business issue. Consider a familiar business scenario: you hand over an urgent fax on Monday and find out on Tuesday that it’s still sitting on your fax operation’s desk. What happened? The line was busy and he thought he’d try again later. Or, the numbers was wrong, but he forgot to let your know. Or you are in London and you need to send a spreadsheet that details a marketing plan for a product introduction strategy to a co-worker in New York. This must be done today, not tomorrow where the courier’s service would deliver. There is a solution to these common and frustrating problems. It’s called integrated messaging: a group of computer services that through the use of a network send, receive and combine messages, foxes and large data files. Some better known examples are electronic mail, enhance for and electronic data interchange.
Broadly defined, messaging is the software that sits between the network infrastructure and the client or electronic commerce applications, masking the peculiarities of the environment. Other define messaging as a framework for the implementation of portable applications, divorcing you from the architectural primitives of your systems. In general, messaging products are not applications that solve problems; they are more enables of the applications that solve problems.
Messaging services offer solutions for communicating no formatted (unstructured) data such as purchase orders, shipping notices and invoices. Unstructured messaging consists of fax, e-mail and form based system like Lotus Notes. Structured documents messaging consists of the automated interchange of standardized and approved messaging include EDI.
Messaging is gaining moment in electronic commerce and seems to have many advantages. It supports both synchronous (immediate) and asynchronous (delayed) message delivery and processing. With a synchronous messaging, when a message is send work continuous

11. (software doesn’t 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 application it enables- which appear to be more complex especially to traditional – and the jungle of standards it in voles 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 authentication techniques are important issues that need to be resolved for ensuring the legality of the message- based transactions themselves.
Middleware services:
Middleware is a relatively new concepts that emerged only recently. Like so many other innovation, it came into being out of necessity. Users in the 1970s, when vendors delivered homogeneous systems that worked, didn’t have a need for middleware. When condition changed –along with the hardware and the software the organization couldn’t cope: The tools were inadequate, the backlog was enormous, and the pressure was overwhelming. And, the users that dissatisfied. Something was needed to solve all the interface, translation, transformation and interpretation problems that work driving applications developers’ crazy.
With the growth of networks, client-server technology, all other forms of communicating between/among 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 dissimilar the systems, networks that permitted shared resources and applications that could be accepted multiple software programs. In simple terms, middleware is the ultimate mediator between diverse software programs that enable then talk to one another.
Transparency:
Transparency implies that users should be unaware that they are accessing multiple systems. Transparency is essential for dealing with higher- level issues than physical media and interconnection that the underlying networks infrastructure is in charge of. The ideal picture is one of a “virtual “ network : a collection of work –group , departmental, enterprise, and interenterprise LANs that appears to the end users or client applications to be a seamless and easy accessed whole.
Transparency is accomplished using middleware that facilitates a distributed computing environment this give users and applications transparent access to data, computation, and other resources across collection of multivendor, heterogeneous systems. The strategic architecture of every measure systems vendor are now ways based on some form of middleware. The key to realizing theoretical benefits of such an architecture is transparency. Users need not spend that time trying to understand where something is. Nor should applications developers have to code into then applications the exact location of resources over the network. The goal is for the applications to send a requests to the middleware layer, which then satisfies the requests any way it can, using remote information.

12. Transaction Security and Management:
Support for transaction processing (TP) is fundamental to success in 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 business that cannot afford any loss or inconsistency in data. For electronic commerce, middleware provides the qualities expected in the standard TP system: the so-called AC/D properties (atomicity, consistency, isolation and durability).
World Wide Web (WWW) As the Architecture
Electronic commerce depends on the unspoken assumption that computers cooperate efficiently for seamless information sharing. Unfortunately, this assumption of interoperability has been supported by the realities of practical computing. Computing is still a world made up of many technical directions, product implementations and computing vendors. This diversity, white good for innovation, causes problem as the e-commerce applications try to impose a certain discipline on the proliferating computers and networks. It is ironic that the real effect of computing is all too often the prevention of data sharing due to incompatibilities – architectures, data formats and communication 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 concept, the universal reader concept and client-server concept.
The global hypertext publishing concept promotes the idea of seamless information world in which all on-line information be accessed and retrieved in a consistent and simple way. To access information in this seamless world, we will need the ability to address many types of data-text files, images, sound files, and animation sequences.
The Universal readership concept promotes the idea that, unlike the segmented applications of the past, we can use one application- a universal (or common) user interface- to read a variety. Of documents. This concepts implies that once information is published it is accessible from any type of computer, in any country, and that any (authorized) person merely needs to use one simple program to access it. This is accomplished in the web by using a core browser or application that augmented by supporting applications. The core browser implements only minimal functionality and attempts to offload more specialized work onto the supporting applications.
The client-server concept allows the web to grow easily without any centralized control. Anyone can publish information and anyone (as long as or she is authorized) can read and download it. Publishing information requires a server program, and reading data requires a client browser. All the clients and all the servers are connected to one another by the Internet. The various standard protocols allows all clients to communicate will all servers.
In practice the web hangs on a number of essential concepts, including the following:

13.  The addressing scheme known as uniform resource locator (URL) makes the hypermedia world possible despite many different protocols.
 A network protocol known as hypertext transfer protocol (HTTP) used by the client browsers and servers offers performance and features not otherwise available.
 A mark -up language (HTML), which very web client is required to understand, is used for the representation of hypertext documents containing texts., list boxes and graphics information across the net.

14. Chapter 4
Technology behind the Web
Information provides (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), gateway” programs that convert an existing information format to hypertext, or a non-HTTP server that Web browsers can access- anonymous FTP or Gopher servers.
Web servers are composed of two major parts: three hypertext transfer protocol for transmitting documents between servers and clients and the hypertext markup language (HTML) formats for documents. The link between HTML files and the HTTP servers is provided by the uniform resource locator (URLs).
Uniform Resource Locators:
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 pointers is implemented using a concept that is central to Web browsers: uniform resource locator (URLs). One way to think about URLs is to use the libraries and location on a shelf as a metaphor. A URL for a digital library would be a unique call number that provides the exact location of every book in the world, including the country, city street, and library shelf location.
In practice, URLs 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 may be used by any other internet user to send your mail without knowing exactly where you are, a URL marks the unique location on the internet where a file or service can be found.
URLs follows 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 fill name of the resource. URLs are universal in that they provide access to a wide range of network services which required separate applications in the past. For a new network protocol one can easily form an address as the set of parameters necessary to retrieve the object. If these parameters are encoded into a concise string, with a prefix to identify the protocols and encoding, one has new URL scheme. Take a look at the URL formats below:
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

15. These are URLs for internet news articles and newsgroups (the NNTP protocol) and for HTTP archives, for TELNET destinations, email 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/The project.html. The prefix “http” 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 substring 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 a hierarchical space, the pound label (#) as a way of pointing inside the document and question mark (?) as a separators between the address of an object and a query operation applied to it. Hierarchical spaces are useful for hypertext, where one “work” may be split up into many interlinked documents. The # allow relative names to exploit the hierarchical structure and allows links to be made within the work independent of the higher parts of the URL, such as the server name.
URLs are control to the Web architecture. The fact that it is to address an object anywhere 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 business can conduct financial transaction over the Internet and a lack of widespread security measures remains at this time. At present, credit and number, 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 database. Access control mechanisms must be set up to ensure that properly authenticated are allowed access only to those resources that they are entitled to use. Such mechanisms include 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 users in network transactions for activities such as on-line payment. The goal is to defeat any attempt to assume another identity while involved with electronic mail or other forms of data communication. Preventive measures include data encryption using various cryptographic methods.
Data and Message Security:
The lack of data and messages security on the Internet has become a higher 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 “sniffer” programs that collect credit card numbers en masse is enough to keep merchants away from on-line shopping given the possible lawsuits and other liability issues. In short, the lack of business transaction security is widely acknowledged as a major impediment to widespread e- commerce.
Encrypted Documents and Electronic Mail:
E-mail users who desire confidentiality and sender authentication are using encryption. Encryption is simply intended to keep personal thoughts personal. Some users are already using Pretty Good Privacy (PGP); others are starting to use Privacy Enhanced Mail (PEM).

17. E-mail is typically encrypted for the reason that all network correspondence is open for eavesdropping Internet e-mail is obviously for less secure then the postal systems, where envelops protect correspondence from casual snooping. A glance at the header area of any e-mail message, by contrast, will show that it has passed through a number of nodes on its way to you. Every one of these nodes presents the opportunity for snooping.

18. Chapter 6
Electronic Commerce Companies

19. Chapter 7
Pictorial Representation- E-Buying Methodology
Step 1
Step 2

20. Step 3
Step 4

21. Step 5
Step 6

22. Step 7
Step 8

23. Step 9
Step 10

24. Step 11

25. Chapter 8
Conclusion
E-commerce is growing tremendously. A lot of companies have joined between the period July and August. Online retails is still a tiny spot in India’s retails market of about $ 500 billion a year, but it is growing at a quick pace. A study by retail consultancy Technopark predicts India’s e-tailing market will reach $ 32 billion by 2020 from $ 2.3 billion in 2014.
Ethnic Indian clothes & 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 chances of making it big. They also see consolidation in the sector going forward.

26. Bibliography
1. Frontier of Electronic Commerce by Ravi KalaKota & Andrew B.Whinston
2. Big E-commerce deals stir up sector- Electronic Times
3. www.Flipkart.com