EXAMINATION FOR THE DEGREE OF BACHELOR OF SCIENCE IN

INFORMATION TECHNOLOGY
ASSIGNMENT 2 & CAT 2.

NAME: AHMED MUKTAR MUHUMED

REG NO: SCT221-C004-0153/2019

BIT 2315: E COMMERCE

DATE DUE: 28TH JULY 2023

1. Describe the following as used in ecommerce. [3 marks]

i. Digital signature process.
The digital signature process is a cryptographic technique used in
ecommerce to verify the authenticity and integrity of digital messages or
documents.

ii. Digital certificates.

A digital certificate, also known as a public key certificate, is a crucial

component of the public key infrastructure (PKI) used in ecommerce. It is
issued by a trusted third party known as a Certification Authority (CA) and
serves as a means to establish the legitimacy of a public key.

iii. Certification authority:

Certification Authority (CA) is a trusted third-party entity responsible for
issuing, managing, and revoking digital certificates in ecommerce and
other secure communication contexts.
2. Explain the use of a firewall within an organization in relation to e-commerce
applications. [3 marks]

Network Security: Firewalls serve as the first line of defense for an organization's
network. They inspect incoming and outgoing network traffic, filtering out potentially
harmful or unauthorized data packets.

Protection against Cyber Attacks: E-commerce applications are attractive targets

for cybercriminals due to the valuable data they process. Firewalls help prevent
unauthorized access to the e-commerce servers and databases.

Preventing Data Leakage: Firewalls can be configured to prevent sensitive data

from leaving the organization's network without proper authorization. This is crucial
for protecting customer data and maintaining compliance with data protection
regulations.
3. Define the term e-strategy and highlight seven dimensions of e-commerce strategy
[ 8 marks]

Definition of E-Strategy: E-strategy, short for electronic strategy, refers to a

comprehensive plan or roadmap developed by an organization to leverage electronic
technologies and digital resources effectively. It aims to achieve specific business
objectives, gain a competitive advantage, and enhance overall performance in the digital
realm. E-strategy encompasses various aspects of electronic business, including e-
commerce, online marketing, digital communication, technology adoption, and the
integration of digital initiatives with the organization's overall business strategy.

Seven Dimensions of E-Commerce Strategy: Developing a successful e-commerce

strategy requires considering various dimensions to ensure a cohesive and effective
approach. Here are seven key dimensions of an e-commerce strategy:
1. Market and Customer Analysis: Understanding the target market and customers is
essential. Conducting market research helps identify customer needs, preferences, and
pain points. Analyzing competitors' strategies provides insights into market trends,
pricing, and positioning, enabling the organization to tailor its offerings and
marketing messages effectively.
2. E-Commerce Platform Selection: Choosing the right e-commerce platform is
critical for the success of online operations. Factors to consider include the platform's
features, scalability, security, integration capabilities, ease of use, and cost. The
selected platform should align with the organization's needs and growth plans.
3. User Experience (UX) and Design: Providing an excellent user experience is crucial
for customer satisfaction and retention. The e-commerce website or application
should be visually appealing, easy to navigate, and optimized for different devices
(responsive design). User-centric design principles can enhance the overall shopping
experience and drive conversion rates.
4. Digital Marketing and Promotion: Developing a strong online presence is essential
for attracting customers. This dimension involves formulating strategies for search
engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing,
email marketing, content marketing, and other digital promotional efforts to reach the
target audience effectively.
5. Payment and Security: Ensuring secure and seamless payment processing is
fundamental to building trust with customers. Implementing robust security measures,
including SSL certificates, encryption, and compliance with industry standards like
PCI DSS, helps protect sensitive customer information and financial transactions.
6. Logistics and Fulfillment: An efficient logistics and fulfillment strategy is crucial for
timely and accurate order processing, shipping, and delivery. Organizations need to
consider the most cost-effective and reliable shipping methods, inventory
management, and order tracking to meet customer expectations.
7. Customer Service and Support: Providing excellent customer service is essential for
e-commerce success. Organizations must have clear customer support channels,
including live chat, email, and phone support. Addressing customer queries and issues
promptly contributes to positive customer experiences and encourages repeat
business.
4. Explain four characteristics of a successful e-payment method [4 marks]

 Security and Fraud Prevention: A successful e-payment method prioritizes security

to instill trust in users and protect sensitive financial information.
 Convenience and Accessibility: User convenience is a crucial aspect of a successful
e-payment method. It should be easy to use, offering a seamless checkout process that
minimizes the number of steps required for completing a transaction.

 Speed and Real-Time Processing: In the digital age, speed is of the essence. A
successful e-payment method ensures real-time processing, enabling instantaneous
payment authorization and confirmation.

 Ease of Use and Convenience: User-friendliness and ease of use are critical factors
for widespread adoption of an e-payment method.

5. Explain any four components of electronic market places [4 marks]

1. Product Listings and Catalogs: One of the primary components of an electronic

marketplace is the product listings and catalogs. Sellers can create and manage their
online storefronts within the marketplace, where they showcase their products or
services with detailed descriptions, images, and pricing information. Buyers can
browse through these listings, compare offerings, and make informed purchasing
decisions.
2. Search and Discovery Tools: To help buyers find relevant products or services,
electronic marketplaces incorporate advanced search and discovery tools. These tools
typically include search filters, sorting options, and recommendation algorithms.
3. Payment and Transaction Processing: Efficient and secure payment processing is
crucial in electronic marketplaces. The platform integrates with various payment
gateways to enable smooth and secure transactions between buyers and sellers. This
involves supporting multiple payment methods, such as credit/debit cards, digital
wallets, and bank transfers.
4. Rating and Review System: A robust rating and review system is a vital component
of electronic marketplaces. It allows buyers to share their experiences and feedback
about products and sellers. Ratings and reviews help build trust among users and
assist potential buyers in making informed decisions.

6. Clearly explain the meaning of the following terms as used in Internet and e-commerce
business transactions [4 marks]
i. Authorization.
Authorization in the context of Internet and e-commerce business
transactions refers to the process of granting specific privileges or
permissions to an individual or entity to access certain resources or
perform particular actions within a system. It is a crucial security
mechanism that ensures that only authorized users can access sensitive
data, perform operations, or carry out transactions.

ii. Authentication.
 Authentication is the process of verifying the identity of a user or entity
attempting to access a system, website, or application. It ensures that users
are who they claim to be before granting them access to sensitive
information or performing certain actions
iii. Auditing.
Auditing, in the context of Internet and e-commerce business transactions,
refers to the process of systematically examining and analyzing records
and activities within a system or organization.

iv. Integrity.
Integrity, in the context of Internet and e-commerce business transactions,
refers to the assurance that data and information remain accurate,
complete, and unaltered during transmission, storage, and processing.

7. Explain the four categories pressures likely to force an organization to adopt and use the
e-commerce system applications/systems [4 marks]

1. Technological Pressures:
Advancements in technology can create pressures for organizations to adopt e-commerce
systems: Emerging Technologies: The emergence of new technologies, such as mobile
commerce, Internet of Things (IoT), and artificial intelligence (AI), can open up new
opportunities and drive organizations to integrate these technologies into their e-commerce
systems.

2. Market Pressures:
Market pressures are driven by the changing dynamics of the business environment and
customer expectations. Key factors include:
Competitive Advantage: If competitors adopt e-commerce and gain a competitive
advantage, organizations may feel pressured to do the same to level the playing field or
surpass competitors.
b. Customer Demand: As consumers increasingly prefer online shopping and expect
seamless digital experiences, organizations need to adopt e-commerce to meet customer
demands and retain their market share.
c. Globalization: Expanding into international markets often requires e-commerce
capabilities to reach a broader customer base and facilitate cross-border transactions
efficiently.

3. Legal and Regulatory Pressures:

Legal and regulatory factors can create incentives for e-commerce adoption:
a. Data Protection and Privacy Laws: Compliance with data protection regulations (e.g.,
GDPR, CCPA) may necessitate secure e-commerce systems to handle customer data
responsibly.
b. Taxation and Compliance: E-commerce may require organizations to adapt to changing
tax laws and compliance requirements related to online sales and cross-border transactions.
c. Accessibility: To ensure accessibility for all users, organizations may be required to adopt
e-commerce systems that adhere to accessibility guidelines.

4. Cost and Operational Pressures:

Cost-related and operational factors can also drive organizations toward e-commerce
adoption:
a. Cost Efficiency: E-commerce can offer cost-saving opportunities through reduced
operational expenses, streamlined processes, and lower inventory management costs.
b. 24/7 Availability: E-commerce systems allow organizations to operate around the clock,
meeting the demands of global customers and enhancing business reach.
c. Supply Chain Integration: E-commerce systems facilitate integration with suppliers and
partners, optimizing supply chain management and inventory replenishment proces