E-BUSINESS TECHNOLOGY AND MANAGEMENT

Unit – 1

Introduction to WWW [World Wide Web]

Internet is a large system of interconnected computer networks that spans the globe. The part of
the Internet is known as the World Wide Web or the Web. The internet, which connects computer
networks around the world to each other.
Internet Service providers sell internet access rights directly to large customers and indirectly to
smaller firms and individuals through other companies.

Origin of Internet
In 1969, Advanced Research Projects Agency (ARPA) used the network model developed by its
researchers to connect four computers into a network called the ARPANET.
The ARPANET was the earliest of the networks that eventually combined to become what we
now call the internet.

New Uses for the Internet

E-mail was born in 1972 when a researcher wrote a program that could send and receive
messages over the network. The first mailing e-mail mailing lists also appeared on these networks.

Commercial use of the Internet

In 1989, the National Science Foundation (NSF) permitted two commercial e-mail services, MCI
Mail and CompuServe, to establish limited connections to the Internet for the sole purpose of
exchanging e-mail transmissions with users of the Internet.

Emergence of the World Wide Web

The Web is software that runs on computers that are connected to the internet. The network
traffic generated by Web software is the largest single category of traffic on the internet today,
outpacing e-mail, file transfers, and other data transmission traffic.

Packet Switched Networks

A network of computers that are located close together is called a Local Area Network (LAN).
Networks of computers that are connected over greater distances are called Wide Area Networks
(WAN).

Routing Packets
As an individual packet travels from one network to another, the computers through which the packet
travels determine the best route for getting the packet to its destination. The computers that decide how
best to forward each packet are called routing computers.

Internet Protocol (IP)

A protocol is a collection of rules for formatting, ordering, and error-checking data sent across a
network. The open architecture philosophy developed for the evolving ARPANET, which later became
the core of the Internet, included four key rules that have contributed to the success of the Internet:
Key Rules
• Independent networks should not require any internal changes to be connected to the network.
• Packets that do not arrive at their destinations must be retransmitted from their source network.
• Router computers act as receive and forward devices.
• No global control exists over the network.

Transmission Control Protocol (TCP)

The Internet uses two main protocols namely: Transmission Control Protocol and Internet
Protocol. These protocols are the rules that govern how data moves through the Internet and how
network connections are established and terminated.
IP uses a 32-bit number to identify the computers connected to the Internet. This address is
called an IP address.
IP numbers (addresses) appear as four numbers separated by periods. This notation system is
called dotted decimal notation.
Each of the four numbers is an 8-bit numbers.
In networking applications, an 8-bit number is often called an octet. In binary, an octet can have
values from 00000000 to 11111111; the decimal equivalents of these binary numbers are 0 and 255,
respectively.

Domain Names
The founders of the Internet were concerned that users might find the dotted decimal notation
difficult to remember. To make the numbering system easier to use, they created an alternative
addressing method that uses words. In this system, an address such as www.course.com is called a
domain name. Domain names are set of words that are assigned to specific IP addresses and can contain
two or more word groups separated by periods.

Electronic Mail Protocols

Electronic mail, or e-mail, that is sent across the Internet must also be formatted according to a
common set of rules. The organization has a computer called an e-mail server that is devoted to handling
e-mail. People in the organization might use a variety of programs, called e-mail client software, to read
and send e-mail. These programs include Microsoft Outlook, Outlook Express, Netscape Messenger,
Incredible mail and many others. The e-mail client software communications with e-mail server
software on the e-mail server computer to send and receive e-mail messages.

Protocols for Sending and Retrieving E-Mail

Simple Mail Transfer Protocol (SMTP)

Specifies the format of mail message and describe how mail is to be administered on the e-mail
server and transmitted on the Internet.
Post Office Protocol (POP)
Can be used to request mail from the organization’s e-mail server by a e-mail client program.
Interactive Mail Access Protocol (IMAP)
A Newer e-mail protocol that performs the same basic functions as POP, but includes additional
features.
Intelligent Web Designing
Testing and fixing a website after it has been built is inefficient and unlikely to produce good results.

Model of “Pervasive Usability” in Website Design

1. Requirements Analysis.
• Determine the goals for the website from the perspective of the user and the business.
• Determine the user needs and target usability requirements.
• Perform a competitive analysis.
• Perform user interviews and surveys.
2. Conceptual Design.
• Sketch out a site design and architecture at an abstract level.
• Conduct a task analysis to find critical features.
3. Mockups / Prototypes.
• Use the evaluation results to create more mockups or improve the prototypes.
• Repeat this process until the design and usability goals are met.
4. Production.
• Create the final product.
• Use the evaluation results to improve the product.
• Repeat the process until the business goals are met.
5. Launch and Maintenance.
• Launch the website.
• Maintain and refine with user feedback.
• Use the feedback to create new requirements, and begin improvements.

Website Design Overview

1. Design
a. Simplicity rules
b. Follow established web conventions
c. Don’t disable user preferences
d. Use semantic tags whenever possible.
e. Dos and Don’ts for achieving usability in design.
Do
• Use ALT tags for all graphics, especially navigation graphics.
• Use black text on white background whenever possible for optimal legibility.
• Use either plain-color backgrounds or extremely subtle background patterns.
• Make sure text is in a printable color.
• Place navigation in a consistent location on each page of your website.
• Use a familiar location for navigation bars.
• Keep the design from scrolling horizontally.
Don’ts
• Allow ALT tags to clip.
• Display static text in blue or underlined.
• Use boldface or ALL CAPS for long pieces of text. These slow down reading.
 • Leave too much white space-reduces scan ability.
• Use horizontal rules to separate chunks of content.
• Fix pages at larger than 800 X 600 pixels. Larger pages may force users to scroll
horizontally.
2. Writing
a. Task Oriented Writing
b. Consistency
c. Clearing up Ambiguities
3. Information Architecture
Information architecture focuses on designing effective navigation, organization, labeling,
and search systems. The role of the information architect is crucial to the planning and
conceptual design stages of web development as good information architecture.
4. Quality Assurance
Quality Assurance is an important step in the website development process and by all means,
should not be skipped. A broken link or a misspelled word may seem like trivial mistakes,
but they can greatly undermine the credibility of your website.

HYPER TEXT MARKUP LANGUAGE (HTML)

HTML is one of the common markup language used on the web. It is used for creating hypertext on the
web. It has a title, subheading and name of the author.

Markup Languages
1. Standard Generalized Markup Language (SGML)
It’s used by publishing industry to create documents that needed to be printed in various
formats and that were revised frequently. SGML is a Meta language, which is a language that
can be used to define other languages
2. HTML
HTML is one of the common markup languages using on the web. It is used for creating
hypertext on the web. An HTML document contains document text and elements. The tags in
an HTML document are interpreted by the web browser.HTML gives users a way to identify
the structural parts of a document. Tags are a kind of HTML commands. A tag is a unit of
markup, a set of symbols defined in HTML to have special meaning. They are followed by
angle brackets (<) & (>).

Tags are of two kinds:

i. Start tags used to begin an effect.
ii. End tags used to end an effect.
Ex:
<B> Bold Text</B>

Working of Web
• The Web is a compendium of virtually countless Web-formatted documents known as Web
pages.
• Web documents live on computers that run HTTP (Hyper Text Transfer Protocol) servers.
 • Most HTTP servers are hosted on UNIX machines; however personal computers are also used.
• To access a Web server and display a Web page, you need a Web browser; Browsers are
allowing you to freely browse Web pages.

Web Page
A Web page is simply a document written in the Web-formatting language, HTML. It can be one
to many screens in length. Web pages are also used to advertise products, companies, and services.
Home Page
Home page is the opening document to particular web site, signifying the top of the site
hierarchy and providing a generalized table of contents in the form of links.

Elements of Web Page

Web pages contain three main components formatted in HTML. They are
1. Text
2. Graphics
3. Links

The HTML Document Life Cycle

The life cycle of an HTML document includes:

1. Developing
Within the development phase are four sub processes:
• Planning Documents
o Planning for Maintenance
o Planning for Content Maintenance
o Planning for Site Maintenance
• Organizing Your Documents
o Hierarchical Organization
o Linear organization
o Webbed organization
• Creating Documents
o Create a Master Document
o Select Images
o Create Important Pages First
• Testing Documents Before Publication
o Testing for Overall Appearance.
o Testing for Usability.
o Readability
o Testing for Accuracy
2. Publishing Documents
3. Testing Published Documents
4. Maintaining Documents
HTML documents contain two types of information:
• Static
• Dynamic
Tags and Attributes
Tags are case-insensitive. Tags distinguish between information that is to be displayed as
paragraph or heading etc..
Attributes provide extra information about a Tag, which specify information in Tags, such as
color, alignment, height, width etc..,

Structure Tags
All HTML documents should include five structure tags, nested and ordered as in the following:
• !DOCTYPE Tag
• HTML Tag
• Head Tag
• Title Tag
• Body Tag

HTML Document Components

• Headings
• Body Text
• Paragraph-Level Formatting
• Specifying Line Breaks

LISTS
Lists provide information in a structured, easy-to-read format. They help to easily spot important
information.
1. Bulleted (unordered)
2. Numbered (ordered)
3. Definition Lists.

List Tag Effect

<UL> Specifies that the information appear as an unordered (bulleted) list.
<OL> Specifies that the information appear as an ordered (numbered) list.
<LI> specifies a line item in either ordered or unordered lists.

The standard format of a definition list is as follows:

<DL> opens the description list.
<DT><B>Description Terms.</B>Close each individual Term </DT>
<DD>Follow the each term with its definition. Close each definition </DD>
</DL> Close the Description List.

Enhancing the Appearance of Web Page

1. Adding Colors
2. Setting Background Colors.
3. Setting Tex Colors
4. Specifying Fonts and Font Sizes.
1. Adding Colors
In order to give a better look for your web page you can add colors. You specify colors using
hexadecimal numbers, which combine proportions of Red, Green and Blue called RGB numbers.

Recommended RGB Values

R G B
00 00 00
33 33 33
66 66 66
99 99 99
CC CC CC
FF FF FF

2. Setting Background Colors

To specify a background color for your documents, include the BGCOLOR=”#...” attribute in
the opening <BODY> tag.

3. Setting Text Colors

Text colors can enhance the look of your web pages. You can specify the color of the following:
• Body text, which appears throughout the document body.
• Unvisited links, which appears throughout the document body.
• Visited links, which are links previously followed.
• Active links, which are links as they’re being selected.

4. Specifying Fonts and Font Sizes

You can use the <FONT> tag to specify font characteristics for your document, include color,
size, and face.

CRYPTOGRAPHY AND CONSUMER INTERFACE TECHNOLOGIES

Cryptography
Cryptography is the science of securing data. It addresses four major concerns confidentiality,
authentication, integrity, and non-repudiation.

Data Mining
Data mining is the extraction of information from large databases, from which future trends and
behaviors of any business can be made.

Scope of Data Mining

Data Mining can be thought of as digging or searching for valuable information in a large
database for business purposes.
The most commonly used techniques in data mining are:
• Artificial neural networks.
• Decision trees.
 • Genetic algorithms.
• Nearest neighbor method.
• Rule induction.

Data Mining Model

The technique that is used to perform there feats in data mining is called modeling. Modeling is
simply the act of building a model in one situation where you know the answer and then applying it to
another situation that you don’t.

1. Data Mining for Prospecting

Information Customers Prospects

General information known known
(E.g. demographic data)

Proprietary information known Known

(E.g. customer transactions)

2. Data Mining for Predictions

Information Yesterday Today Tomorrow

Static Information and current plans known known known
(E.g. demographic data, marketing plans)

Dynamic information known known known

(E.g. customer transactions)

OLAP (On-Line Analytical Processing)

An OLAP serves enables a more sophisticated end-user business model to apply when
navigating the data warehouse. The multidimensional structures allow the user to analyze the data, as
they want to view their business-summarizing by product line, region, and other key perspectives of
their business.
This design represents a fundamental shift from conventional decision support systems. Rather
than simply delivering data to the end user through query and reporting software, the Advanced Analysis
server applies users’ business models directly to the ware and returns a proactive analysis of the most
relevant information.
Reporting, visualization, and other analysis tools can then be applied to plan future actions and
conform the impact of these plans.
Unit – II

E-COMMERCE

E-Commerce involves transaction of business over a computer network. It has a lot of

applications in business. It may be business consumer, business to business and consumer to consumer.

Categories of Electronic Commerce

Category Description Example

Business-to-consumer (B2C)
Business-to-business (B2B)
Consumer-to-consumer (C2C)
Businesses sell products or Walmart.com sells merchandise
services to individual consumers. to consumers through its web
site.
Businesses sell products or Grainger.com sells industrial
services to other businesses. supplies to large and small
businesses through its web site.
Participants in an online Consumers and businesses trade
marketplace can buy and sell with each other in the eBay.com
goods to each other. Because one online marketplace.
party is selling, and thus acting
as a business, this book treats
C2C transactions as part of B2C
electronic commerce.

Development and Growth of Electronic Commerce

The web has made online shopping possible for many businesses and individuals, in a broader
sense; electronic commerce has existed for many years.
Banks have been using Electronic Funds Transfers, which are electronic transmissions of
account exchange information over private communications networks.
Electronic Data Interchange occurs when one business transmits computer-readable data in a
standard format to another business.
A business that engages in EDI with each other are called trading partners.
The standard formats used in EDI contain the same information that businesses have always
included in their standard paper invoices, purchase invoices, and shipping documents.

Advantages of Electronic Commerce

All the advantages of electronic commerce for businesses can be summarized in one statement:
Electronic commerce can increase sales and decrease costs.

Advantages
• A business can reduce the costs of handling sales inquiries, providing price quotes, and
determining product availability by using electronic commerce in its sales support and order-
taking processes.
 • E-Commerce provides buyers with a wider range of choices that traditional commerce.
• E-Commerce provides buyers with an easy way to customize the level of detail in the
information they obtain about a prospective purchase.
• E-Payments of tax refunds, public retirement, and welfare support cost less to issue and arrive
securely and quickly when transmitted over the internet.
• E-Payments can be easier to audit and monitor than payments made by cheque, providing
protection against fraud and theft losses.
• E-Commerce can also make products and services available in remote areas.

Disadvantages of Electronic Commerce

Advantages
• Return-on-investment is difficult to calculate.
• Many firms have had trouble recruiting and retaining employees with the technological, design,
and business process skills needed to create an effective E-commerce presence.
• Difficulty of integrating existing databases and transaction-processing software designed for
traditional commerce into the software that enables electronic commerce.
• Many businesses face cultural and legal obstacles to conducting E-Commerce.

Multidisciplinary Approaches to E-Commerce

Electronic commerce is bases on several disciplines. The major disciplines of electronic commerce are:
1. Marketing
2. Computer Sciences
3. Consumer behavior and psychology
4. Finance
5. Economics
6. Management information systems (MIS)
7. Accounting and auditing
8. Management
9. Business law and ethics
10. Others.

DATA WAREHOUSING
Data warehousing is the process of collecting data item in an organization and placing it in an
integrated data store.

Need for Data Warehousing

Many factors have influences the quick evolution of the data warehousing disciplines.
1. Hardware and Software prices
a. Powerful preprocessors
b. Inexpensive disks
c. Desktop powerful for analysis tools
d. Server software
Operational Vs. Informational Systems
The different types of information systems in all organizations: Operation Systems and
Information Systems.

“Operations systems” are just what their name implies, they are the systems that help us run the
enterprise operate day-to-day.
These are the back bone systems of any enterprise, our “order entry”, “inventory”, manufacturing”,
“payroll” and “accounting” systems.
Because of their importance to the organization, operational systems were almost always the first parts
of the enterprise to be computerized.

“Informational systems” have to do with analyzing data and making decisions, often major decisions
about how the enterprise will operate, now and in the future.
And not only do informational systems have different focus from operational ones, they often have
different scope.
Where operational data needs are normally focused upon a single area,
Informational data needs often span a number of different areas and need large amounts of related
operational data.

Data Warehouse Architecture

A Data Warehouse Architecture (DWA) is a way of representing the overall structure of data,
communication, processing and presentation that exists for end user computing within the enterprise.

The architecture is made up of a number of interconnected parts:

1. Operational Data Base / External Data Base Layer
2. Information Access Layer
3. Data Access Layer
4. Data Directory Layer
5. Process Management Layer
6. Application Messaging Layer
7. Data Warehouse Layer
8. Data Staging Layer.

Data Warehouse Options

1. Data Warehouse Scope
2. Data redundancy
a. “Virtual” or “Point-to-Point” Data Warehouses.
b. Central Data Warehouses.
c. Distributed Data Warehouses.
3. Type of end-user
E-COMMERCE APPLICATIONS

The Internet Applications in business including the application in the service operations such as:
The Health Care industry, Banks and Financial institutions and the hospitality of tourism industry.

1. Broker- Based Services

a. Service Industries Vs. Manufacturing and Product Retailing
2. Travel and Tourism Services
a. Auctions, bids, and special sales
b. Benefits and limitations
c. Corporate Travel
3. Personal Finance Online
a. Billing Online

The following are the major existing payment systems:

• Automatic transfer of mortgage payments – This method has existed for several years. The
payer authorizes its bank to pay the mortgage, including tax escrow payments.
• Automatic transfer of funds to pay monthly utility bills – Since 1997, the city of long beach
has allowed its customers to pay their gas and water bills from their bank accounts. Many
utility companies worldwide provide this option.
• Paying bills from online banking account – Such payments can be made into any bank
account. Many people pay their monthly rent and other bills paid directly into the payee’s
bank accounts.
• A Merchant-to-customer direct Billing – A Merchant posts bills on its Web site, where
customers can view and pay them. This means that the customers have to go to many web
sites to pay all their bills.
• Using an intermediary – According to this model, a third party consolidates all bills related to
each customer in one site in a standard format. Collecting a certain commission, the
intermediary makes it convenient to complete transactions.
4. Online Publishing
a. Publishing Modes and Methods
b. Edutainment: Online publishing has to grown into other areas of usage with concepts
such as edutainment and push technology. Edutainment is a combination of education,
entertainment, and games. One of the main goals of edutainment is to make the students
become an active learner instead of a passive one.
CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management (CRM) is a strategy used to learn more about the behavior
and needs of customers. It is used to develop stronger binding with the customers.

Goal of CRM

The idea of CRM is that it helps businesses use technology and human resources to gain insight
into the behavior of customers and the value of those customers.

• Offering better customer service

• Cross selling products more effectively
• Helping sales staff close deals faster.
• Retaining existing customers and discovering new ones.
• Providing services and products that are exactly what your customers want.

CRM Implementation Strategy

A successful CRM implementation strategy needs to consider the following:

1. Knowledge Management
2. Database Consolidation
3. Integration of Channels and Systems
4. Technology and Infrastructure
5. Change Management.

Keys to Successful CRM Implementation

• Develop your customer-focused strategy first before considering what king of technology you
need.
• Break your CRM project down into manageable pieces by setting up pilot programs and short
term milestones.
• Make sure your CRM plans include a scalable architecture framework.
• Don’t underestimate how much data you might collect and make sure that if you need to expand
systems you’ll be able to.
• Be thoughtful about what data is collected and stored.

The biggest returns come from aligning business, CRM and IT strategies across all departments and not
just leaving it for one group to run.
UNIT – III

BUSINESS MODELS
A Business model is one which spells out the strategy for generating revenue in the value chain.
The business model spells out how a company makes money by specifying where it is positioned in the
value chain.

The Basic categories of business models include:

• Brokerage Model
Brokers are market-makers: they bring buyers and sellers together and facilitate transactions.
Brokers play a frequent role in business-to-business (B2B), business-to-consumer (B2C), or
consumer (C2C) markets. Usually a broker charges a fee or commission for each transaction
it enables. The formula for fees can vary.
• Advertising Model
The web-advertising model is an extension of the traditional media broadcast model. The
broadcaster, a website, provides content and services (like email, IM, blogs) mixed with
advertising messages in the form of banner ads.
• Infomediary Model
Data and Consumers are their consumption habits and valuable, especially when that
information is carefully analyzed and used to target marketing campaigns. Some firms
function as Infomediary (information intermediaries) assisting buyers and/or sellers
understand a given market.
• Merchant Model
Wholesalers and retailers are goods and services. Sales may be made based on list prices or
through auction.
• Manufacturer Model
The manufacturer or “direct model”, it is predicated on the power of the web to allow a
manufacturer to reach buyers directly and compress distribution channel. It can be based on
efficiency, improved customer service, and a better understanding of customer preferences.
• Affiliate Model
The affiliate model provides purchase opportunities wherever people may be surfing. It does
this by offering financial incentives to affiliated partner sites. The affiliate model is
inherently well-suited to the web, which explains its popularity.
• Community Model
The viability of the community model is based on user loyalty. Users have a high investment
in both time and emotion. Revenue can be based on the sale of ancillary products and
services or voluntary contributions.
• Subscription Model
Users are charged a periodic, daily, monthly or annual, fee to subscribe to a service. It is not
uncommon for sites to combine free content with “premium” content. Subscription fees are
incurred irrespective of actual usage rates. Subscription and advertising are frequently
combined.
• Utility Model
The utility or “on-demand” model is based on metering usage, or a “pay as you go”
approach. Unlike subscriber services, metered services are based on actual usage rates.
E-MARKETING
E-Marketing may take different forms. They are e-shops, e-procurement and e-auctions.
Electronic marketing reduces transaction costs and helps to identify potential partners and facilitate
business among them.

E-Shops

Services like ordering goods from the site and payment are being increasingly added to this very
basic e-shop. This is basically a B2C type e-commerce.

E-Procurement

This is electronic tendering and procurement of goods and services. This is basically B2B e-commerce.

E-Auctions

Electronic auctions on the internet realize the electronic implementation of bidding mechanisms known
from traditional auctions. This is C2C e-commerce where the site that handles the auction acts as a
mediator.

Promoting Your E-Business

1. The domain name
2. Announcing the website
3. Affiliate Networks
4. Banner ad campaigning
5. Banner exchange

Intelligent Agents
An intelligent agent is software that assists people and acts on their behalf, intelligent agents
work by allowing people to delegate work that they could have done to the agent software.

Characteristics of Software Agents

The software agent, there are several possible traits or abilities that people think of when they discuss
software agents.
Four of these traits:

1. Autonomy
2. Temporal Continuity
3. Reactivity
4. Goal Driven

Supply Chain Management

Supply Chain management is software that helps an organization to find the raw materials it
needs to make a product and deliver it to customers.
The following are five basic components of SCM:

1. Plan: This is the strategic portion of SCM.

2. Source: Choose the suppliers that will deliver the goods and services you need to create you
product.
3. Make: This is the manufacturing step.
4. Deliver: This is the part that many insiders refer to as logistics.
5. Return: The problem part of the supply chain.

Relationship between ERP and SCM

SCM applications are reliant upon the kind of information that is stored in the most quantity
inside ERP software.
ERP is the battering ram that integrates all that information together in a single application, and
SCM applications benefit from having a single major source to go to for up-to-date information.
Applications that simply automate the logistics aspects of SCM are less dependent upon
gathering information from around the company, so they tend to be independent of the ERP decision.
For example,
if you want to build a private website for communicating with your customers and suppliers, you will
want to pull information from ERP and supply chain applications together to present updated
information about orders, payments, manufacturing status and delivery.
UNIT – IV

E-SECURITY AND SECURITY PROTOCOLS

Computer security is the protection of assets from unauthorized access, use, alteration, or
destruction. There are two general types of security: Physical and logical.
Physical security includes tangible protection devices, such as alarms, guards, fireproof doors, security
fences, safes or vaults, and bombproof buildings.
Protection of assets using nonphysical means is called logical security.

Computer Security Classifications

Computer Security is generally classified into three categories:

1. Secrecy: Secrecy refers to protecting against unauthorized data disclosure and ensuring the
authenticity of the data source.
2. Integrity: Integrity refers to preventing unauthorized data modification.
3. Necessity: Necessity refers to preventing data delays or denials (removal).

Intellectual Property Threats

Cyber squatting is the practice of registering a domain name that is the trademark of another
person or company in the hopes that the owner will pay huge amounts of money to acquire the URL. In
addition, successful cyber squatters can attract many site visitors and, consequently, change high
advertising rates.

Security for Client Computers

Client computers, usually PCs, must be protected from threats that originate in software and data are
downloaded to the client computer from the Internet.

Active Content
Cookies
Java Applets
Java Script
ActiveX Controls
Viruses, Worms, and Antivirus Software

STEGANOGRAPHY

The Steganography describes the process of hiding information within another piece of information.
Messages hidden using Steganography are difficult to detect.
Communication Channel Security

1. Integrity Threats
2. Necessity Threats
3. Threats to Wireless Networks
4. Encryption Solutions
5. Encryption Algorithms
a. Hash Coding
b. Asymmetric Encryption
c. Symmetric Encryption
d. Secure Sockets Layer (SSL) protocol
e. Secure HTTP (S-HTTP)

Security for Server Computers

1. Web server threats: A Web server can compromise secrecy if it allows automatic directory
design.
2. Database threats: Trojan horse programs hidden within a database system can reveal
information by changing the access rights of various user groups.
3. Other programming threats: Programs filling buffers can malfunction and overfill the buffer,
spilling the excess data outside the designated buffer memory area.
4. Access Control and Authentication: Refers to controlling who and what has access to the web
server.

Firewalls

A firewall is software or a hardware and software combination that is installed in a network to control
the packet traffic moving through it. Most organizations place a firewall at the Internet entry point of
their networks. The firewall provides a defense between a network and the internet or between a
network and any other network that could pose a threat.

Characteristics of Firewalls

• All traffic from inside to outside and from outside to inside the network must pass through it.
• Only authorized traffic, as defined by the local security policy, is allowed to pass through it.
• The firewall itself is immune to penetration

INTERNET FRAUDS AND CONSUMER PROTECTION

Electronic commerce fraud is a relatively new phenomenon but it shares many of the features of
traditional crime.
Electronic commerce fraud falls at the intersection of several types of crime, as shown below:

1. Traditional crime
2. White-collar crime
3. Computer crime
4. Elderly abuse.

Types of Fraud

1. Stealing or smuggling
2. Electronic Eavesdropping
3. Browsing
4. Masquerading
5. Spoofing
6. Piggy-back Riding and Gate crashing
7. The Trojan Horse Accident Manipulation

Consumer Protection

1. Truth in Advertising
2. Electronic Contracting
3. Consumer Redress
4. Online Fraud
5. Privacy Protection
6. Authentication and Security
7. Consumer Education

Authentication and Biometric Controls

Biometric controls provide access procedures that match every valid user with a unique user identifier
(UID). They also provide an authentication method to verify that users requesting access to the computer
system are really who they claim to be.

A UID can be accomplished in one or more of the following ways:

• Provide something only the user knows, such as a password
• Present something only the user has, for example, smart card or a token.
• Identifying something only the user is, such as signature, voice, fingerprint, or retinal(eye) scan.
It is implemented by biometric controls.

A Biometric control is defined as an “automated method of verifying the identifying of a person, based
on physiological or behavioral characteristics”.

The most common biometrics is the following:

• Face Geometry
• Fingerprints (finger scan)
• Hand geometry
• Blood vessel pattern in the retina of a person’s eye.
• Voice (voice print)
 • Signature
• Keystroke dynamics

Buyers Protection

Buyer protection is critical to the success of any commerce, especially electronic, where buyers do not
see the sellers.
1. Look for reliable brand names at sites like Wal-Mart Online, Amazon.com. and make sure that
you enter the real web site of these companies.
2. Check the seller with the local chamber of commerce
3. Investigate how secure the seller’s site is and how well it is organized.
4. Examine the money back guarantees, warranties and service agreements
5. Compare prices to those in regular stores.
6. Find out what you can do in case of a dispute.

Sellers Protection

The internet makes fraud by customers easier because of the ease of anonymity. Sellers must be
protected against:
1. Customers downloading copyrighted software and/or knowledge and selling it to others.
2. Being properly paid for products and services provided.
3. Use of their names by others.
4. Use of their unique words and phrases, names and slogans, and their web address (trademark
protection)

E-Governance

E-Government refers to the use by government agencies of information technologies that have
the ability to transform relations with citizens, businesses, and other arms of government.
The resulting benefits can be less corruption, increased transparency, greater convenience,
revenue growth and cost reductions.
They also collect a variety of taxes and fees from their constituents.
The use of electronic commerce by governments and government agencies to perform these
functions is often called e-government.

There are two broad governance issues raised by the Internet:

One deals with how the Internet itself, a technologically complex global communication network, can be
managed so it can continue to grow. The tasks of Internet governance in this regard are:

1. Domain names: The rules guiding the creation and administration of top-level domain names,
such as “.com” or “.org”.
2. Internet Protocol (IP) addresses: The allocation for unique IP numbers so that each machine
connected to the network has its own numerical address.
 3. Root name servers: Management of the 12 root name servers that resolve domain names into IP
numbers and enable information to flow across the network.
4. Standardization: Encouraging the adoption of technical standards to preserve interoperability
across the network as technologies evolve.

The second major issue is how to legally govern activity conducted on the internet.
This task remains the responsibility of the government of each nation around the world that is
connected to the internet.
The regulatory agenda covers a wide range of activities:
• The regulation of business transactions and securities trading;
• Consumer protection
• Fairness in advertising;
• The protection of intellectual property;
• Prohibitions on gambling;
• Regulations on the safety of food and prescription drugs.
These are just some of the areas in which the government has had a historical role.

LEGAL AND ETHICAL ISSUES

While E-Commerce is largely based in contract and commercial law, intellectual property law
plays an important role in the success of E-Commerce.

The various forms of intellectual property protection:

• Copyrights - Copyrights protect the content of both websites and the material transmitted over
those websites.
• Trademarks – Trademarks protect the valuable symbols and phrases that distinguish businesses
and increase loyalty.
• Patents – Patents protect the functionality of the software and the methods underlying much of
E-Commerce.
Each contributes to the success of E-Commerce by protecting intangible assets valuable to business.

Copyright
It is fundamental to understand that copyright is protected upon creation. When an author or
artist etches a drawing, writes a story or creates a software program, such work is subject to protection
under copyright laws.

Trademark
A trademark is defined as being any word, name, symbol or device or combination thereof that is used
by a person or in which a person has intention to use in commerce to identify his goods, products from
those manufactured by others.

Patent
A patent is a right which the government grants to an inventor permitting him to exclude others from the
making, using, selling, offering for sale or importing the invention for a limited time within the territory
of that government.

Electronic Contracts
The uniform Electronic Transactions Act seeks to extend existing provisions for contract law to cyber
law by establishing uniform and consistent definitions to electronic records, digital signatures, and other
electronic communications.

Contract Enforcement in Electronic Commerce

• Written contracts on the Web
• Warranties on the Web
• Authority to form contracts
• Terms of service agreement

CYBER LAW AND PRIVACY ISSUES

Cyber law is a term, which refers to all the legal and regulatory aspects of Internet and the World Wide
Web.

Cyber Law in India

The cyber law, in any country of the world, cannot be effective unless the concerned legal system has
the following three prerequisites:
1. A Sound cyber law regime,
2. A Sound enforcement machinery, and
3. A Sound judicial System

The Players

1. Hackers
a. Original hackers created the UNIX operating system and helped build the Internet,
Usenet, and World Wide Web; and used their skills to test the strength and integrity of
computer systems.
b. Overtime, the term hacker came to be applied to rogue programmers who illegally break
into computers and networks.
2. Crackers
a. People who engage in unlawful or damaging hacking short for “criminal hackers”
3. Other attackers
a. “Script kiddies” are ego-driven, unskilled crackers who use information and software that
they download from the Internet to inflict damage on targeted sites.

Types of Cyber Attacks

1. Technical attack – An attack perpetrated using software and systems knowledge or expertise.
 2. Non-technical attack – An attack in which a perpetrator uses chicanery or other form of
persuasion to trick people
3. Common vulnerabilities and exposures (CVEs) – Publicly known computer security risks or
problems; these are collected, and shared by a board of security-related organizations.
4. Denial-of-service (DoS) attack – An attack on a Web site in which an attacker uses specialized
software to send a flood of data packets to the target computer.
5. Distributed denial of service (DDoS) attack - A Denial-of-service attack in which the attacker
gains illegal administrative access to as many computers on the internet.
6. Malware – A generic term for malicious software
7. Virus – A piece of software code that inserts itself in a host, including the operating, to
propagate;
8. Worm – A software program that runs independently, consuming the resources of its host from
within in order to maintain itself onto another machine.
9. Trojan horse – A program that appears to have a useful function but that contains a hidden
function that presents a security risk.
10. Two of the better-known Trojan horses “Back Orifice” and “NetBus” – Self-installing
utilities that can be used to remotely control and monitor the victim’s computer over a network.

Privacy Issues

Privacy means different things to different people.

“Claim of individual, groups or institutions to determine for them when, and to what extent, information
about them is communicated to others.”
Here are examples of the ways someone can collect private information through Internet:
• Reading your newsgroups postings
• Finding you in the Internet directory
• Making your browser record information about you.
• Recording what your browsers say about you.

Web site Self-registration and the use of cookies are two of the major resources of information for
companies seeking to collect personal data.

Web sites can gather customer information through filled out registration questionnaires. In a
registration process, customers type in their private information, such as name, address, phone, e-mail
address, and used in an inappropriate manner.
A cookie is a piece of information that allows a Web site to record one’s comings and goings. Cookies
help Web sites maintain user states. This means that web sites can remember information about users
and respond to their preferences on a particular site, process transparent uses passwords, and so on.

Privacy Protection

1. Think before you give out personal information on a site.

2. Track the use of your name.
3. Keep you newsgroups posts out of archives.
4. Use the anonymizer when browsing.
5. Live without cookies
6. Use anonymous remailers
7. Use encryption
8. Reroute your mail away from your office.
9. Ask your ISP or employer about a privacy policy.
UNIT – V

E-COMMERCE IN INDIAN CONTEXT

The cutting edge for business today is e-commerce. Most people think e-commerce means
online shopping. But web shopping is only a small part of the picture. The term also refers to online
stock, bond transactions, buying and downloading software without ever going to a store.

E-Commerce is associated with the buying and selling of information, products, and services via
computer networks. A key element of e-commerce is information processing.

E-Commerce Growth

During the year 2000-2001, two major Industry Associations produced separate reports on e-
commerce in India. Both the reports came out around the same time, namely June-July 2001.

One was prepared by the National Committee on E-Commerce set up the Confederation of Indian
Industry (CII), while the other was commissioned by the National Association of Software and
Service Companies (NASSCOM) and prepared by the Boston Consulting Group.
The Confederation of Indian Industry (CII) report estimates the volume of e-commerce to
grow to Rs.500 billion (US$ 10.6 billion) in the year 2003, out of which B2B will be Rs.420 billion
(US$ 9 billion) and B2C will be Rs.80 billion.
The NASSCOM-BCG Report, estimates for the same year that the total volume of e-commerce
will be Rs.1,950 billion, out of which Rs.1,920 billion will be on account of B2B and Rs.3 billion will
be on account of B2C.

Players and Problems

There are several B2B players. Sathyam has developed an engine that can be used to develop platforms
for any industry.
Probably the biggest ‘internal B2B’ player is maruti, which already does a large purchasing and dealer-
networking online.
Some other successful cases are: Hindustan Lever Ltd., General Motors and Godrej.

Some of the barriers to e-commerce adoption in India include the following:

• Limited Internet access among customers and SMEs

• Poor telecom and infrastructure for reliable connectivity.
• Multiple gaps in the current legal and regulatory framework.
• Multiple issues of trust and lack of payment gateways.

Telecom Developments

During the last five years, the telecom sector has seen continued liberalization. Telecom services,
which were the sole monopoly of the Government till 1994, were opened to the private sector. As a
result, a number of private companies were given licenses for providing mobile telephone services, and
more recently for fixed-line telephone services.

A number of private sector companies like Reliance Communications, Bharti Telecom, etc.., are
providing broadband access over the cable. Set top boxes and cable modems can enable existing TVs to
act as Internet devices. All major cities are being wired with optical fibers to provide cable TV services,
and broadband internet.

Legal and Regulatory Framework

The Indian Government is taking appropriate steps as confidence building measures for the
growth of e-commerce. It has created the necessary legal and administrative framework through the
enactment of the information technology IT Act, which combines e-commerce transactions and
computer misuse and frauds rolled into an Omnibus Act.
While one the one hand it seeks to create the Public Key Infrastructure (PKI) for electronic
authentication through digital signatures, on the other hand, it seeks to build confidence among the
public that the frauds in the cyber space will not go unpunished.
The Controller of Certifying Authorities (CCA) has been put in place for effective
implementation of the IT Act. The Act also enables e-governance applications for electronic delivery of
services to citizens.

M-COMMERCE

M-Commerce is the use of mobile devices to communicate, inform transact and entertain using
text and data via a connection to public and private networks.

Typical examples of m-commerce are:

• Purchasing airline tickets
• Purchasing movie tickets
• Restaurant booking and reservation
• Hotel booking and reservation

M-Commerce versus E-Commerce

M-Commerce should be recognized as a unique business opportunity with its own unique characteristics
and functions, not just an extension of an organization’s internet-based e-commerce channel.

Technology E-Commerce M-Commerce

Device PC Smartphones, Pages, PDAs,
Operating System Windows, Unix, Linux Symbian (EPOC), PalmOS,
Pocket PC, proprietary
platforms.
Presentation Standards HTML HTML, WML, HDML, i-Mode.
Browser Microsoft Explorer, Netscape Phone.com UP Browser, Nokia
Navigator browser, MS Mobile Explorer
 and micro browsers
Bearer Networks TCP/IP & Fixed Wire line GSM, GSM/GPRS, TDMA,
Internet CDMA, CDPD, paging
networks.

Issues in Web-based Mobile Payment

Lack of standards for m-commerce between different financial institutions

• End-to-end security issue
• Retailer-processing center integration problems
• High transaction processing capacity at the backend application processors
• Lack of payment infrastructure

Key Issues in M-Commerce

• Evolution: Technology and Business models are constantly evolving which will demand
flexibility and patience on part of all players.
• Customer Loyalty: Who will ‘own’ customer? Partnerships among players from various
industries will be necessary for most, it not all, m-commerce initiatives, and, in turn, will alter
the nature of any one company to own their own customers.
• Cross-sector knowledge gulf: Here the different parties will need to learn about the functions
and limitations of the services provided by the other players
• Moving up the value chain: To respond to market opportunities some companies have develop
subsidiaries in order to react more rapidly to market challenges.