1)explain information flow with and without EDI?

explain tangable benifits of

EDI?
ANS:

EDI in Action :
Edi has been used in the procurement function to steam-line the interaction between the
Buyer and seller .the other uses for EDI are universities use EDI to exchange transcripts
quickly.
Automatically units uses EDI to transmit large complex engineering design created on
the specialized computers.
Large multinational companies use EDI to send online price catalogs to customers
Listed products , prices ,discounts and terms.

The EDI Transaction for a purchase ,shipment and payments are as follows :
These are the various steps as follows:
1.Buyers computer sends purchase order to sellers computer
2.Sellers computer sends purchase order confirmation to buyers computer
3.sellers computer sends booking request to transport companies computer.
4.Transport companies computer sends booking confirmation to sellers computer
5.sellers computer sends advance ship notice to buyers computer.
6.Trnasport company’ s computer sends status to sellers computer.
7.buyers computer sends receipt advice to sellers computer.
8.Sellers computer sends invoice to buyers computers.
9.Buyers computer sends payment to sellers computer

Tangible benefits of EDI are:

It has the following benefits:
1.Reduced paper based system: It does not require any paper related supplies and other
modes of things. It uses Inexpensive manner of system.
2.Improved problem resolution and customer services: EDI minimize the time ,
companies spend to identify and resolve inner business problems.
Example : some problems comes from data entry errors.
3.Improve service by quick transfer of business documents
4.expanded customer supply base /supplier base:
Many large manufactures and retailers with the necessary clout are ordering their
suppliers to institute an EDI program. Like to get order from unknown company and
build bridges to other companies .it evaluates new products .
2)illustrate EDI layered architecture? compare EDI and email?
ANS:
ELECTRONIC DATA INTERCHANGE (EDI) :
EDI is the electronic transfer from one computer to another computer process able data
using agreed standard to structure the data.
Example EDI transaction EDI handbook etc.
EDI is developed in 1960s means of accelerating the movements to shipments and
transportation.
It is aimed at forcing boundary less relationship that means it bringing down the
boundaries that restrict how they interact and do business each other.
Layered architecture of EDI is shown below:

1.EDI Document standard layer :

1.It specifies business form structure and to some extent influence content seen at the
application layer.
Example: purchase order name field x12 standard might be to hold 50 characters and 75
characters field produced name truncating during translation from application layer to
document standard layer.
2.EDI Transport layer :
It corresponds with non electronic activity of sending business from one company to
another company .It can send using postal service ,registered mail and certified mail
and email etc.
Generally EDI transport layer chooses email As the carrier services.
3.EDI Physical layer : It describes the physical devices which involved in transaction.
They use various devices like dial –up systems ,internet ,I-WAY,
3)what is an electronic cheque?state its importance and role in e-commerce?
ANS:

ELECTRONIC CHECKS
They are designed to accommodate many individual and entities that might prefer to
pay on credit or other than cash.

From the above diagram the buyer must register with a third party accounting server
before they are able to write electronic check.
-The accounting server acts as billing a servicing and the registration process
depends on the accounting server , they may require a credit card or bank account
details to back the checks .
-Once the customer registered a buyer can contact seller goods and services to
complete a transaction .The buyer sends the check to the seller for a certain amount of
money.
-These checks may be sending using email or other transport.
-When deposited the check authorize transfer of account balance from the current
against the check was drawn to the account.
-Accounting server authenticates digital signature on the check using the key
method of cryptographic algorithm.
E-Check have the following advantages:
 They work same as traditional checks , thus simplifying customer education.
It is well suited for clearing micro payments.
It creates float and availability of transaction cost.
Financial risk is taken by accounting server so easier acceptance.
Another check called “netcheque” was developed by Information science institute(ISI)
by Clifford Newman.
It include software for writing and depositing checks independent of other applications.
The API will provide common functions to be called as automatically when with other
transaction functions.

4)what is an financial EDI and finantial VANs?

state there application?

NOT FOUND

5)what is an electronic fund transfer?what are the security issues involved in it?

ANS:
Electronic fund transfer:
Electronic fund transfer or EFT is the electronic exchange or transfer of money from one
account to another, either within a single financial institution or across multiple
institutions, through computer-based systems.

Security issues involved in Electronic fund transfer:

Security
Security means the protection of the integrity of EFT systems and their information from illegal
or unauthorized access and use. Although the loss per theft appears to be greater than for paper
based payment systems, there is no real evidence that EFT systems to date have resulted in a
higher than average crime rate. Why, then, is the security of EFT systems an important public
concern and potentially a major policy issue? In comparison with other payment systems, EFT
appears to have some additional vulnerabilities.

For example:
EFT systems have many points of access where transactions can be affected in unauthorized ways
because of direct customer involvement with the dynamics of the systems, the use of
telecommunication lines, and the ways in which data are aggregated and transmitted among and
between sites and institutions.

EFT crime is often difficult to detect because funds/data can be removed or manipulated by
instructions hidden in complex computer software; the dynamics of the criminal action may be
understood by only a few experts within the institution.
EFT crime offers a sporting element, or intellectual challenge, that perhaps is as enticing to some
as the opportunity for financial gain.

It is possible, in theory, for large banks of data to be destroyed by remote agents, creating the
opportunity for maliciousness, extortion, blackmail, or terrorism.

EFT systems reduce the effectiveness of—or eliminate altogether—some of the traditional
methods of controlling and auditing access to financial accounts.

The level of EFT security violations is difficult to assess at present because there is
underreporting of EFT crime, a paucity of information about EFT security, and a lack of informed
public discussion. While there is a danger that giving these problems higher visibility through
public discussion may at first exacerbate them, the public is entitled to know what risks they are
exposed to in using EFT services. Furthermore, both law enforcement agents and financial
institutions would benefit by sharing information about vulnerabilities, defense strategies, and
security-enhancing technologies.
Some believe that effective technology and sound management procedures exist to
adequately assure EFT security, though even present technology and procedures are not all
widely used. Their use varies among institutions. There is as yet no clear and consistent
set of industrywide security standards for protecting computer systems. Better information about
EFT security would allow Congress and State legislatures to assess more effectively the possible
need for new legislation and/or regulations.
6)explian in detail about mercantile process model in mercants prespective?
ANS:
Merchantile’s model from the Merchantile’s perceptive:
Fig: Order management cycle in E-commerce

It consists of eight different activities that are grouped into three phases:
1.Presale phase
2. Product service / delivery
3. Post sale interaction phase
1.Presale phase :
It consists of two activities namely
a) Customer enquiry and order planning and order generation
b) Cost estimation and price of product services

a) Customer enquiry and order planning and order generation:

Once the merchant receives the order enquiry they need to plan the products by
sales forecast with the help of people close the customer either in the sales force
or in the marketing group at company level and at the same time a group of in
manufacturing function details.
A capacity plan that specify how much money spend , how many people will be
hired and how inventory will be created.
Order planning leads to order generation and orders are generated by different
ways like sales force broad cast, sends emails to customers , create www web
pages etc.
b) Cost estimation and price of product services :
pricing is the bridge between the customer needs and company capabilities.
Company does not understand how to execute order based pricing in online
markets.
Pricing at individual order levels depends on understanding the value to the
customer. Although order based pricing is difficult to work that requires
meticulous thinking and deliberate execution.
2. Product service / delivery :
It consists of four activities:
a)order receipt and entry
b)order selection and prioritization
c) order scheduling
d)order full fillness and distribution

a)order receipt and entry :

After acceptable price code the customer enters the order receipt and entry
phase of order management cycle(OMC).
This was under the purview of departments title customer service , order entry
And the inside sales desk. These departments are staffed by customer
service representatives.
b)order selection and prioritization :
The customer service representative are responsible for choosing which
orders to accept and which orders to decline. In fact all customer orders are
created equal but some are simply better than others.
The desirable orders are those that fit the capabilities and offer healthy
company put efforts into order selection
link it their business strategy to make more money regardless of production
capacity. company gain by order prioritization.
c) order scheduling :
In this phase , the prioritized orders get started into actual production or
Operation sequence. It is difficult because various functional departments like
marketing , sales , customer service and production.
Due to this differentiation they may have conflicting goals. compensation
systems and communication between the systems is not existent.
Example : The customer service reporting to sales department they may
separated from physically( long distances) or production scheduling which
Reports to manufacturing unit which is far away.
d)order full fillness and distribution :
Here actual service /product is made where details vary from industry to
industry And it involves order fulfillment that requires multiple functions in
multiple locations.
The different parts of the order may be created in different manufacturing
units and are merged at another site.
3.Post sale interaction phase :
It consists of two different activities namely:
a. Order billing and account payment management
b. Customer services and support
a. Order billing and account payment management:
After the product distribution , billing is handled by the finance staff who
view their job is getting the bill out efficiently , collectively and quickly.
Billing is designed to ensure the needs and interests of the company but not
the interest of the customers.
b. Customer services and support :
It plays an important role in the company profit equation.
It includes elements like physical installation of products ,repair , maintenance
and Customer training and equipment upgrading and disposal.

7)Explian the anotomy of e-commerce appliction?

ANS:

THE ANATOMY OF ECOMMERCE APPLICATIONS:

The various applications are :
1.Multimedia content for e-commerce applications
2.Multi media storage servers and e-commerce applications
3. client server architecture for electronic commerce
4. Video servers and electronic commerce
5.Information delivery/ transport and Ecommerce applications
a) Consumer access devices
1.Multimedia content for e-commerce applications
Multimedia is the use of digital data in more than one format such as
combination of text , audio, video, graphics in computer file. Multimedia is
associated with the hardware convergence taking place in the communications ,
computer and cable industry as the next generation digital.
Access to multimedia content depends on the hardware and the software applications
that run on it. The success of ecommerce applications also depends on the variety and
innovativeness of multimedia content and packaging. It include televisions productions
, traditional print productions , software and information services.
2.Multi media storage servers and e-commerce applications
Ecommerce uses robust servers to store and distribute large amount of digital
content to consumers and these servers capable of handling various contents
including books . newspapers , movies ,games and x-ray images.
Digital technology mass storage which is feasible and less cost.
3. client server architecture for electronic commerce
In this model allows the client to interact with the server through a request reply
sequence governed by a paradigm called “message passing”.

4. Video servers and electronic commerce : Video servers are important link
between the content providers (entertainment/media) and transport
providers(telcos/videos/cable operators). The video servers tackle the
simultaneous overlapping “ supply problem that arises when providing ondemand
services to large numbers of homes. All video servers need not be hardware based.
5.Information delivery/ transport and Ecommerce applications
Transport providers are telecommunications , cable, wireless industries,
computer networks including commercial networks like Compuserve and
public network like Internet.
The various transport routes:
Information transport providers Information delivery methods
1.Telecommunications long-distances , local lines
2. Cable television coaxial cable, fiber optic
3.wireless communications cellular &radio network, paging
Systems
4. Computer based online companies internet , commercial online
service providers

computer based online companies: these providers are dial up linkage of lower
bandwidth when compared to telecom and cable high ways. Various providers like
Prodigy, compuServe .
Consumer access devices: These are devices which can provide access to information
and they are videophones, PCs, PDAs and television capable of handling two way
communication , cellular phones , mobile and portable computers.

Information consumers Access Devices

1.Computer with audio &video PCS/ LAPTOPS, CDROMS
Capabilities
2. Telephone devices video phone
3.consumer electronics television+ set-top box
4.PDAs voice driven computing, software agents

8)Write about electronic payment system and also explian the risks involed in it?
ANS:
Electronic Payment System

An e-commerce payment system facilitates the acceptance of electronic payment for

online transactions. Also known as a sample of Electronic Data Interchange (EDI), e-
commerce payment systems have become increasingly popular due to the widespread use
of the internet-based shopping and banking. In the early years of B2C transactions, many
consumers were apprehensive of using their credit and debit cards over the internet
because of the perceived increased risk of fraud

RISKS AND ELECTRONIC PAYMENT SYSTEMS:

They are three major risks occurs in payment systems , they are as follows:
1. Mistake or fraud
2. Privacy issues
3. Credit card risks
1. Risks from mistakes and disputes:
By virtually electronic payment systems need some ability to keep automatic
records for the transaction.
The various features of automatic records are permanent storage , payment
database system , data transfer to bank and payment makes etc.
The need of record keeping is conflicts with the transaction anonymity of cash
2.Privacy issues are managing information privacy:
The e-payment system must ensure and maintain privacy. Users must be
assured that knowledge of transaction will be confidential and limited to the
only parties not for others.
Privacy must be maintained against eavdroppers on the network and
against unauthorized insiders.
All details of consumer payments are aggregated and are given privacy.
3. Managing Credit Risks :
Credits are systemic risk is major concern in net settlement systems because a
banks failure to settle its net position could leads to chain reaction of bank
failures.
So that the digital central bank must develop policies to deal with this possibility
The central bank can guarantee on settlement and removes the risks from the
net system.

9)write about consumer oriented electronic commerce?

ANS:

ELECTRONIC COMMERCE CONSUMER APPLICATIONS:

Consumers desires are difficult to predict, pinpoint in electronic markets whose shape,
structure and population are still in the early stages. Need envisioned include
entertainment on demand ,video on demand, games on demand, home shopping
networks .
Consumer applications and social interactions:
TVs before 1945 no one have in USA. Bt 1960 86% house hold did using it and in
1940 only 40% people used telephone after that in 1980 95-98% of people are using
now.
Social revolutions are bearing on the ecommerce applications example radio trends
and television talk shows can be seen in the online news groups.
Social interactions are promoted by introduction of 800 tool free service in 1968. by
1993 AT&T s 800s number business uses 40% of total call made- some 12billion 800
calls. The four major 900 services are fax back , interactive, recorded –
sports score, financial services.
What are consumers willing to spend ?
The study of economist noted that consumers already spent 30% for advertising costs
To pay for free television. Network operators could target consumers with advertising
and privacy issues not easily resolved. consumers will be prefer to spend less cost for
their business rather then spending more.
Delivering products to customers :
Ecommerce should be distributed for example Blockbuster video its traditional
distribution through stores could become obsolete is actively exploring electronic media
as a distribution channel ,blockbuster knows what consumer want in entertainment .
Blockbuster research shows that the typical consumer:
1.spends $12 month on home video expenditures 2.wants to go video shop and select
3. is on a limited budget 4. has time to kill.
Consumer Research and Electronic commerce
Evaluating a customer preference is uncertainty in electronic commerce . example
Interaction television- survey by Chilton research services and CBS News suggest
that some degree of consumer and willingness to pay less than $20 a month for a
selection of interactive television services. A poll of 1000 adults found 63 % interested
interactive television service of that 685% use news channel .
A CNN consumer opinion about interactive TV yields the following :
* 46% “willing to pay personalized news summaries on interactive television
* 39% want to video phone calls
* 63% pay for movies on demand
*41% that it will be confusing to use.