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UNIT - I History: Although it may seem like a new word, the term “E-Business” was hatched back in 1997, making it no spring chicken. Considering the fact that it describes an entirely new way of conducting business however, it is safe that it’s still in its early stages of use. With every turn of the page we’ll see the term defined in a different way, shape or form. Perhaps this is because it describes such a large scope of processes ranging from sending out a new letter to selling an audit online. So, what exactly is E-Business and what does it mean to the future of a business owner? Definition: “Any process that a business organization conducts over a compute mediated network. Business organizations include any for profit, government, non-profit entity. Their processes include production, consumer and internal or management-focused business process.” -“United State Census Bureau” A simple word, “E-business is the process of conducting business electronically or over the internet.” Where does E-business take place? E-Business is offered to all users via internet. To internal users via intranet (similar to the internet, an intranet is a smaller network of computers usually with in a single organization) and to specified users via an extranet (an intranet partially accessible to specified users from outside an organization via a valid username and password). Relation between E-Commerce & E-Business: The United States Census Bureau defines E-commerce: “Any transaction completed over a computer mediated network that involves the transfer of ownership or rights to use goods and services.” E-business: “The conduct of business through internet.” E-business covers the entire range of online business dealing (from customer service to selling), E-commerce refers specifically to one entity paying for goods or services from another entity via the internet.
E-Commerce: Advantages: o o o o o o o o o o o Less distance. 24hrs service. Cost of setup is low. More flexibility. Exposure to untapped net segments. Error reduction. Wider choice. No wastage of time. Financial service. Manual data entry is greatly reduced. Funds transfer is faster.
Disadvantages: o o o o o o o o Inability to feel touch & feel merchandise. Online shares do not exist very long. System will never be 100% safe. Access of population is low. Not widely available in India. Payment by credit online requires security. Improper EDI system. Security of transactions.
Models: When organizations go online. They have to decide which e-business model best suit their goals. A business model is defined as the organization of product, service and information flows, and the sources of revenues and benefits for suppliers and customers. The concept of e-business model is the same but used in the online presence. The following is a list of the currently most adopted e-business models such as: o o o o o o o o o o o o E – shops E – commerce E – procurement E – mails E – auctions Virtual communities Collaboration platforms Third-party market places Value-chain integrators Value-chain service providers Information brokerage Telecommunication 3 Author: B.Naresh
Roughly dividing the world into provider/producers and consumers/clients one can classify into the following categories: o o o o o o o o o Business to Business (B2B) Business to Consumer (B2C) Business to Employee (B2E) Business to Government (B2G) Government to business (G2B) Government to Government (G2G) Government to Citizen (G2C) Consumer to consumer (C2C) Consumer to Business (C2B) Among the above models, E-business has three main types of models o Business to Consumer (B2C) o Business to Business (B2B) o Business to Government (B2G) Business to Consumer (B2C): The most widely recognized form of e-business, B2C is the exchange of information, products, or services taking place between a business and a consumer over the internet. As the internet develops, B2C is continually changing the way consumers acquire information, the way products are compared against one another and the way in which they are purchased. Example: o Amazon.com o Ax.com is an example of B2C site housing a physical as well. Business to Business (B2B): The largest form of e-business in terms of money spent is B2B. B2B allows trading to take place between businesses using a low cost sales channel for the sale of goods and services and is responsible for constantly changing corporate buying habits. Example: B2B site would be a car part company selling parts to a car dealership another company rather than directly to consumers. Business to Government (B2G): B2G is the online exchange of information and transactions between and government agencies, also known as e-government. B2G allows government agencies and businesses to use electronic means to conduct business and interact with each other over the internet. 4 Author: B.Naresh
the later needs innovations to suit the Indian needs. dairy portal TARA hoot. and inagriline.Example: B2g site would be one that offers ‘electronic tax filling’. e-education and e-commerce using the same platform. Instead of looking at e-governance in isolation. Luckily there are several projects underway in different parts of the country that can give some insight on the development of G2C delivery models in rural areas. bringing about administrative reforms and automating the back and processes before an effective delivery system can be implemented. Needless to say that the government will require reengineering. While there are standard approaches available for the former.Naresh . SARI and cyber grameen. echaupal. warana. Its processes. Government to citizen: The e-governance initiatives in India face the twin challenges of automating the government dept and taking the on-line services to the common man. ESWOT Design Management E-Business Life cycle Phases Organization Deployment Development 5 Author: B. In India there are eight successful IT projects in rural areas namely Gyandoot. we need to think in terms of delivering telemedicine.
Example: e-shopping. Like regular EC applications. there are several new applications that are possible only in the mobile environment. Generally speaking many of EC application described can be done in mcommerce. which is basically any e-commerce or e-business done in wireless environment.Design Development Design Development E-Business application & content development Definition Testing Development Monitoring Pilot/Tuning M-Commerce: “Mobile-commerce” “Any business done in a wireless environment. To that the following attributes are to be traced 1. people can reached at any time. or other infrastructures.Naresh . private communication lines. e-banking and e-stock trading However. smart cards. m-commerce can be done via the internet. especially via internet. This impact is described as mobile commerce. Mobility (portability) 2. 6 Author: B. Broad reach In mobile computing. especially via internet” is called mcommerce.” The impact of mobile computing on our lives will be very significant a similar impact already occurring in the way we conduct business.
7 Author: B. instant connectivity. Ubiquity. Wimax Wireless networks Transmission Model Internet Access standards Hard ware mobile devices Software Micro browsers Capabilities M-commerce Applications Attributes Ubiquity Mobility Broad reach Connectivity Personalization Cost reduction Applications M-commerce L-commerce Intra business Mobile consumer applications Personal services Support Services Mobile portals Voice portals Security Pervasive computing Smart cards Home office Digital cities Mgmt: cost benefit. coordination. Gprs. personalization and location of product or service. Drivers of mobile Commerce: Wide spread availability of mobile devices. Wi-Fi revolution Wireless personal area networks(WPANs) 100 50 0 Ea s t W es t North The Landscape of Mobile commerce (MC) 1s t Qtr Technical Foundation Technologies 3g. limitation. implementation. wi-fi.These two characteristics break the barriers of geography and time. integration. convenience. They create the following five value-added attribute that drive the development of m-commerce.Naresh . planning.
private • MSN -------------------.com) • Military(. The internet is a rapidly growing network of thousand of business.II Internet: Internet is a network for the elite. It has valuable information but work at no extra charge. These networks are the basis of many computer operations around the world.gov) If an individual wants to communicate with these systems. educational and research networks connecting millions of computers and their users in over 100 countries. The internet evolved from a military focus towards non.Naresh . are given below • Educational institutions(. Example: of public & private networks • American on-line -----.ed) • Commercial organizations(.private • Internet -----------------. Six categories of most common domain names.mil) • Government(.public Prospects: Cost benefits Time effective Speed access Problems: Hacking Virus Internet security problems 8 Author: B. they require access to the private data network.UNIT . but it is very egalitarian.military use with many simultaneous developments like: E –mail Personal computers Work group computing Office productivity applications Software products LAN (Local Area Network) Components of Internet: Every computer on the internet has its own unique name.
Internet is flourishing since it has an ideal of disseminating information free to any one.Application of Internet: Business use of internet o Information collection o Collaborate with others o Provide vendor support and communication o Research competitors o Communicate internally o Provide customer service & support o Publish information o Purchase products or services o Sell products or services The Internet:It is the network that connects various networks of computers around the globe into one seamless network. There is no real government. 9 Author: B. bureaucrat. The first entry of internet took place in the United States defense departments to connect network to scientists and university professors around the world. but there is real anarchy. It is the most well known and the largest implementation of internet working. the market started to change more firms and individuals wanted to access the internet and to establish a presence on the World Wide Web (www). but did not have the knowledge. Paradoxes of the Internet It is a network for the elite. but it has the world of the god. Internet is got from the phrase “Interconnected Networks” Most of the public & private organizations in any country are working internally and with other organizations is through the internet.” ⇒ At basic level. It is a creature of government. It has pornography. Most brands of computers at this time employed different rules for communication (protocols). ISP (Internet Service Providers) In early 1995. all ISPs offer the same service. DOD decided to develop a vendor independent ARPANET (Advanced Research Project Agency) ARPANET protocols were replaced in 1970’s by TCP/IP protocol suite. but it is the soul of a new enterprise. linking thousands of individual networks all over the world and thus providing many benefits to organizations. at any cost. at any time. It has valuable information. “A company that has a connection to the internet and charges the public a fee to use part of that connection. but there is no extra change. capital or desire to do it themselves. any where. but it is very egalitarian.Naresh .
Marketing the necessary equipment and Software the customer needs to set up business like modems.Naresh . PCs. But there is a pecking order among ISPs that have implications for the speed and reliability of your company’s internet connection. web browsers and authoring packages. Creating home page and websites. ⇒ A company choose a particular ISP based on Quality of service Customer support levels Reliability It is essential in India that ISPs have to provide not only access and make money from that but also Provide additional business like hosting. Sales & Marketing: One of the main problems faced by corporate sales staff is the problem of getting timely sales and marketing information out in the field. Sales people need information just before sales & marketing. discounts information Sales training material. R&D Application: Product manager & team members can use an intranet for internal reporting and to do the following ≈ Update projects schedule & important mile stones ≈ Circulate technical drawings ≈ Post technical specifications ≈ Circulate information on competing products ≈ Ask technical questions and specifications skills 10 Author: B. On sales Analysis of the local competition Planned sales. Applications of Internet: Intranet depends on 5 applications • Sales & Marketing Applications • Research & Developments • Improving customer services & technical Support • Human resource application • Accounting application. Some of the types of information we can publish on an intranet include Sales presentation Product information Price lists Info. They make it possible for users to exchange e-mail & surf the web.
e-mail. chart Θ Employee development programs. or suppliers. telephone. or even on how best to create HTML web page. ϒ Calculate order status info quickly. Although fax. technical support. Accounting Applications: Even the finance department can take advantages of the intranet by posting by posting clear financial objectives for both corporate staff & world wide sales staff it includes • Monitoring the company stocks price • Publishing the current status of an initial public offering • Publishing the annual report • Establishing partnership with suppliers. such as business partners. Improving customer service: Customer service & technical support.Naresh . or it can use a separate network. EDI: Electronic Data Interchange 11 Author: B. † Extranets are networks that connect companies with supplier’s business partners. or other authorized users. Extranet: An extranet is an intranet that has been extended to include specific entities outside the boundaries of the organization. Human Resource Application: Θ Corporate policies & procedures Θ Company benefits Θ Current job vacancies Θ Expenses claim form info. ϒ Calculate the bug or customer problem ϒ Publish technical support bulletins to support staff through out the world. Θ Corporation mission statement Θ Company org. carriers have been the main communication tools for business. files.≈ Calculate feed back from sales staff on proposed new product specifications ≈ Conduct interactive training. † Extranets are start out as intranets that provide access of intranet data to select internet users. ϒ Publish the latest fix or work around for a particular problem. † An extranet can be set up through the internet. even internal departments can benefited from intranets as ϒ Conducting training sessions on customer service. Each participant in the extranet has access to the database. or other information stored on computer connected to the extranet. customers. meetings Θ Gov regulation information.
The exchange of information through some electronic media is called EDI Def: “EDI is transmission of a standard syntax of unambiguous info. VPN: Virtual Private network Distributors Firewall X –corporation intranet Internet Off –site Employees Y-corporation intranet VPN Architecture 12 Author: B. Applications in Business: EDI usage in various industries provides insight into the business problems and that EDI is attempting to solve those problems Here we consider 4 different scenarios in industries that use EDI are International or cross border trade Electronic funds transfer (EFT) Health care EDI for insurance claims processing Manufacturing and retail procurement EDI has shaped company’s marketing and distribution efforts by helping to develop new marketing methods and introduce better customer service. Of business or strategic significance between the computers of independent organization. Benefits: ≠ ≠ ≠ ≠ Reduced paper based system Improved problem resolutions and customer service Expanded customer/ supplier base Faster customs clearance and reduced opportunity for corruption.Naresh .
carries out its work over the internet and is then terminated. ☺ Intranet is usually slower and more expensive then using web based communications. ☺ Information from intranets can be shared among departments that use different technologies as well as among external consumers. Telnet. that uses public network and there protocols to send data to partners. IP. Features: ☺ Intranets are an excellent low –cost way to distribute internal corporate information. internal network connection. A firewall is a program or hardware device that protects information inside an organization network from attacks that originate outside the network. usually one that uses the TCP/IP protocol the organization that created it. FTP. ☺ Intranet requests for files. HTML and HTTP because intranets are compatible with the internet.Virtual private network (VPN) is an extranet. suppliers and employees using a system called IP-tunneling or encapsulation. the connection is actually temporary. customers. Each transaction between two intranets using a VPN is created. Intranet: An intranet is an interconnected network (or internet). 13 Author: B.Naresh . The web server sends the encapsulated packets to their destination over the internet. ☺ An intranet uses web browsers and internet based protocols. But. documents or schematic drawings work. including TCP/IP. The virtual passage way is created by VPN software that encrypts the packet content and then places the encrypted packets inside another packet in a process called encapsulation. ☺ Intranets used to reduce software maintenance. The out packet is called IPwrapper. From the above diagram VPN’s usually work as part of a firewall.tunneling effectively creates a private passage way through the public internet that provides secure transmission from one computer to another. The virtual part of VPN means that the connection seeming to be a permanent.
۩ Defines how we will meet our objectives. But. business and marketing strategies. e-business strategy plays a crucial role. Inappropriate direction of e-business strategy. for example with the wrong emphasis on buy-side. The E –business strategy imperative:Many ask why a separate e-business strategy is required.UNIT-III E-Business Strategy Defined: An update on the definition of e-business strategy highlighting the essence of an ebusiness or internet strategy for an organization planning its digital strategy. (poorly defined objectives. In a nutshell. think about the implications if e-business strategy is not clearly defined. strategy: ۩ It is based on current performance in market place.Naresh . Introduction: In the view of long term online business practice. Analysis of e-business strategies: Missed opportunities and from lack of evaluation of opportunities or insufficient resoursing of e-business initiatives. ۩ Provides a long term plan for the development of the organization. Characteristics of E-Business Strategy: E -business strategies share much in common with corporate. e-business isn’t just about “how to do business online”. 14 Author: B. I have seen this in many organizations. ۩ Sets allocation of resources to meet goals. sell-side or internal process support). ۩ Selects preferred strategic options to compete within a market. These will result in more savvy competitors gaining a competitive advantage. These typical quotes summarizing the essence of strategy could equally apply to each. it’s about “how to do business differently online”.
Priorities sold or purchased through e-channel. need something to be delivered to a friend on the other side of the world. Sheer convenience b. Resource wastage through duplication of e-business development in different functions and limited sharing of best practice.com “We offer products from unorganized sectors. “E –business strategy also defines how an organization gains value internally from using electronic networks.to. generally an especially from a particular city or region. Achieve our e-channel targets. Limited integration of e-business at a technical level resulting in silos of information in different systems. Priorities audiences or partners targeted for e-channel adoption.” Advantage of online-shopping: The advantage of online shopping are a. such as through sharing employee knowledge and improving process efficiencies through intranets. which do not have the means to reach various parts of the globe.Naresh . Wider choice 15 Author: B. so well still need to manage channel integration and acknowledge that he adoption of e-channels will not be appropriate for all products or services or generate sufficient value for all partners. These products. can be purchased through our site. online shopping lets you find what you are looking for with the click of your mouse. Objectives:♪ E –business strategy establishes e-business channels. each business unit or region may develop a separate website with different without achieving economies of scale. E –channel strategies thrives on creating differential value for all parties to a transaction. E –channel do not exist in isolation. Example: Malamall.find item. ♪ Specific e-business objectives need to be set to benchmark adoption of e-channel ♪ E –business strategies defines how we should: Communicate the benefits of using e-channels. For instance.” E – Marketing: Online shopping: Introduction: Whether you are looking for a hard. or are seeing the perfect birthday present.
d. through online business. o Developing office network for the delivery of goods at the right time. Better value Unique gifting opportunity Saves time and strain Micro targeting Mass personalization Know customer preference and Integrated source of information The bottlenecks of online shopping: Lack of trust Payment gateway not clear Security concerns Transaction fulfillments is questioned No integration between online and off-line stores Physical large shopping malls themselves are new concepts in India. e. i. o Failing to fulfilling transaction is an issue which most of the sites are unable to meet. h. to the right person Models of E.c. They are Brokers Model: 16 Author: B. Hurdles of online shopping: o Lack of proper system o Misuse of credit card system. f.Naresh . g. three e-marketing models are existed.Marketing: In meeting the trading objectives.
Attractive packaging 2. Validated credit card Supplier Enjoys purchases Order confirmation Order fulfillment 17 Author: B. Establish shop front 2.Configurable app 3. Accurate payment handling. Its aim is to market a predetermined set of goods and services.Naresh .Request for goods Customer Select suppliers Web page 1. Capture customer choice 5. Efficient packaging 3. Establish shop front 2. Presentation of options 4. A good business is distinguished by the fallowing features. Solicit details of the order 3. Customization Model: Msg Flows Customer Select suppliers Web page 1. 1. Credit card validated 4. Goods availability checked Order confirmation Order fulfillment Supplier Enjoys purchases E.Business may not have tangible presence.
Contact Model: Customer View Catalog Submit Bid 1.transaction. E – CRM: Electronic.Customer Relationship Management 18 Author: B. Collect commission Supplier Enjoys Bargain Bid Accept/ Reject Aim is go between matching prospective suppliers of goods and services with buyers a high volume business with speed and efficiency of all the e. Maintains catalog 2.Object is more likely to be the selling of a customizable range of products to a mass market. Match buyers and sellers 5. Business should have online application that enables prospective buyers to adjust the basic product to their specific needs.Naresh . Select winning bids 4. Collect all bids 3.
E. Re – organization a company has become competitive. From the need point view of companies. The need for e –crm is dictated primarily by the new global electronic economy. E – crm is just the right way to go about it.Naresh . This prediction is based on the growing need for company’s influence of the internet as a vehicle for purchasing goods and services is only likely to accelerate that need transiting from normal CRM to E –CRM. Industry analysts predict that CRM will be the hottest selling business applications of the early 21st century. Technology covers all the equipments. marketing customer service and support.In an era of rapidly changing technology and increasing reliance on the web.CRM enables companies to understand customer needs and buying habits better to leverage the new/ better product or service offering to the customer needs. lasting customer relationship are critical to thrive in the market place. The high attraction rate of phone based consumer care representatives. e-crm is critical because of The high cost of phone based support. CRM is a discipline as well as a set of discrete software technologies which focuses on automating and improving the business processes associated with managing customers relationships in the areas of sales. mandate not an option. Technology use in CRM: Technology application is the most exciting fastest growing and changing the ways that customers get information about the products and services. ☺ ☺ ☺ ☺ ☺ ☺ Banking & Finance Hospitality Telecom Transport Courier and Government organizations Every industry segment finds CRM’s utility. several customer touch points and scope for multiple customer interactions such as financial services. A Frame Work: CRM is a concept that combines ⇒ Management thought 19 Author: B. E-CRM Applications: E-CRM applications are varied and many in industry segments. virtually if they have a large customer base.
It also goes further. 20 Author: B. E – SCM Supply chain management: Supply chain management is integrating practices and information technology to optimize information and production flows among the process and business partners with in a supply chain. Technology covers all the equipment. Cut costs Increase profits Improve performance in relationship with customers and suppliers. Develop value added services that gives a company a competitive edge. and order fulfillment of distribution of products.) Goals of E-SCM i. SCM is a generic term that encompasses the coordination of order generation.Naresh . everything from simple overhead transparency projects to laptop computers. ii. Keep inventory as low as possible and still offer superior customer service. Reduce cycle time (supply chain management seeks to simplify and accelerate operations that deal with how customer order are processed through the system and ultimately filled as well as how raw materials are required and delivered for manufacturing process.⇒ Technology and ⇒ Business practices. II. iii. services or information. iv. III. audio cassettes and video cassettes players to cellular phones and voicemail. Get the right products at the right place at the least cost. SCM is a management concept that integrates the management of supply chain process. fax machines to e-mail. Technology application is the most exciting fastest growing and changing the ways that customers get information about products and services. software and communication links that organizations use to enable or improve their processes. order taking. It includes a combination of computers like mainframe and personal computers and the communication networks that organizations use to tie them together. Benefits of E-SCM: I. Any device and associated software comes under the heading of the technology.
Naresh .Functions of E-SCM: 21 Author: B.
information faxed mailed in the part can now be sent immediately. b) Increase number of Po’s processed by fever employees. c) Reduced order processing cycle times.bill cycle. Goals of distribution management a To move documents related to shipping. c Reduction of inventory levels. Goals of inventory management a) Shorten the order.Naresh . Benefits of distribution management 22 Author: B. b Documents can be tracked to ensure they were received.ship.Inventory managemen Supplier managemen t t Distribution managemen t Financial managemen t SCM Sales Arose productivit y Payment managemen t Channel managemen t Goals of supplier management a) To reduce the number of suppliers b) Get them to become partners in business Benefits of supplier management a) Reduce purchase order (po) processing costs. Benefits of inventory management a When a majority of partners are electronically linked.
Benefits to channel management Goals of payment management To link the company and the suppliers and distribution so that payments can be sent and received electronically. Benefits of payment management a Increase the speed at which companies can compute invoices. b Electronically linking production with international distribution and reseller networks eliminates thousands of labour hours per week in a process. d Decrease the number of invoice processed. Instead. ☺ The whole management process may be contracted to a third party rather than developing its own applications and investing in different systems. electronic bulletin boards are used allowing instant access. The various E-SCM vendors are ◌ Oracle ◌ SAP American ◌ People soft ◌ Trilogy Electronic payment system The concept of e-business or on-line business related to selling goods or services over the intranet. In the electronic payment system there are 3 actors who are acting upon the payment mode: ۞ A consumer ۞ A supplier & ۞ A bank manager or an accountant EPS Bank manager/ Accountant Author: B. Benefits of using the internet for SCM ☺ Inter operable intranets helps the supply chain partners to share and exchange information. b Clerical errors get reduced c Lowers transaction fees and costs. Benefits of channel management a Technical product and pricing information required repeated telephone calls and innumerable number of labour hours.a Paper work that typically took days to cycle in the past is now fast with more accurate data allowing improved resources planning.Naresh Consumer Supplier 23 . Goals of channel management a To quickly disseminate information about changing operational conditions to trending partners.
time consuming clerical activities etc. Benefits: ∏ It is the efficient means of changing of funds.Naresh . expenses. mass storage of records and handling. easy recording. To a supplier:It is a receipt or outward movement of fund linked with inventory management. and they are accepted on world wide basis. Benefits: ∏ This Payment requires less manual interventions. balances and reconciliation is done to ensure integrity with constraints at times it is accommodated with interfacing and interchanging through institutions. cash flows which offers improved security and assurance of value. Credit card offers consumers ability to collect all changes and pay the total at later time. Customer browse through a website.To a consumer:EPS is a convenient way of making a purchase or paying for a service without holding cash or paying a cheque which should be processed through acceptable identification. payments by consumer etc. Where the information is collected and sent to the bank. ♫ Credit cards are bound to national currencies. re-imbursement. It always has congestion with series of accounting. To a Bank Manager/ an Accountant: EPS is a series of processes by which the value exchange which is captured. 24 Author: B. ordering or accounting system which eliminates the need for large cash holdings. reduces cost. Benefits: ∏ It benefits the customer from not losing the money and lightens up the wallet. The use of credit card is simple. The series of cheques. decide what services or products they need and enter credit information in to HTML. Post paid system Credit card solutions: Credit card payments are now a days the most common and preferred payment method on the internet. The EPS helps in paying through the token form called plastic money cards. verified and accepted. In case the management of cash flow likes salaries.
Some implementations of e-cash have the fallowing solutions. the customer and merchant need to establish relationships with issuer with respect to the acquirer.In this system there are four players Issuer Acquirer Network Acquirer ∏ ∏ ∏ ∏ ‘Client Relationship Actors The Customer The Merchant The Issuer The Acquirer Client Information Transfer Payer (Customer) Of value Payee (Merchant) In order to use credit card. The electronic money should be exchanged directly between the two partners involved. Digitally signed files replace banks notes. who now go to the merchant and want to buy goods or services. 25 Author: B. Over the financial network the request is then passed on to the merchant through the acquirer. In order to receive or to real world ATM. Prepaid payment system: E – Cash (Electronic cash) E – Cash system use software to save the equivalent of cash on to a hard or a floppy disk. as the money is stored in files.Naresh . There are many other possible ways to pay via credit card. The advantage of this system is that the cost of paying on the money is nearly zero. present their credit card to the merchant. The merchant verifies the validity of credit card by sending the credit card information to the acquirer. Where you can get e-cash by direct debit from the bank account or by credit card payment. The use of encryption technologies such as digital signatures and electronic signatures help to reduce the possibility of fraud. The issuer gives the consumer a credit card. Customers. The difficulty with e-cash is to implement it in a very secure way. They are:♥ ♥ ♥ ♥ ♥ ♥ Wire card Cyber cash Invoice Internet cheques Net cheque E – Cheques etc. The merchant applies to an acquirer for the ability to accept one or more card brands.
but more than pure technology is required.IV Security “Today technology is able to make a system secure. UNIT .Naresh .¥ ¥ ¥ ¥ ¥ Digital cash Net cash Cyber coins IBM micro payment Smart cards.” 26 Author: B.
Many problems have been reported in the past and it is sure that we will see even more incidents in the future for requiring privacy. ♫ The growing demand for doctoring business also raises the awareness for security issues and concerns about achieving the goal of secure business via the internet. Use of cryptography Cryptography is an important component to secure information and communication systems and a variety of applications and has been developed those incorporate cryptographic technologies to provide data security. They are ♪ Symmetric (secret key cryptography) ♪ Asymmetric (public key cryptography) Symmetric methods † † It is the traditional form of the cryptography. E-Security Client based security Server based security Firewall Antivirus Sun trusted Solaris Digital certificate Smart cards Biometric identification Cryptographic Techniques Cryptography is the art of keeping information private in such a form which is unreadable to another person without the right key. The major problem on the internet is the identity of other users. A single key is created which can encrypt the message into a secret form and decrypt the message into readable form. There are 2 methods by which cryptographic techniques are implemented. This means ensuring the data and information is also disclosed to authorize persons. confidentiality and integrity of information system and the data that is stored and transmitted. Security in e-business The term “security” is a wider range issue it means the protection of availability. 27 Author: B. The use of cryptographic algorithms such as DES & RSA is subject to international control and end use. safe guarding the confidentiality and integration of their transactions. Security mechanism The principal security requirements are for data integrity and source authentication. Cryptographic algorithm has been used throughout history mainly to keep communication private.Naresh .
Security system is the most important aspect of e-commerce solution. E. networks. Electronic Security Introduction to security Security is the protection of any computer device. † The secret key which is kept secret by its owner and other is the public key. you have a liability. Without security. But we cannot decrypt the message with the same key. The key issued to encrypt the outgoing message the so called “cyper-text” is sent over the network and recipient decrypts incoming message using the same key.† † † The two parties involved in the communication need to agree on the key before exchanging the information. † Keys are related to each other in a way that through special calculation it is possible to encrypt it with the other. communication device or network from unauthorized access to data. you do not have a system. The key must be kept secret at all times. virus etc. Security is typically defined for computers. The key schedule not is communicated over the same medium on the encrypted message. which is distributed to anyone who might receive a message from the secret key each of the key is a large integer. users.Naresh . applications and even down to specific transactions. Risks that extend to valuable information may be: Lost Stolen Corrupted Misused etc. Asymmetric methods “Public key encryption uses two keys for every encryption and decryption network”. Though this is considered as an advantage of the internet. the disadvantages are also there.Security The internet is a collection of loosely connected networks where in the individual hosts can access the former in a variety of ways through ♥ Gateways ♥ Routers ♥ Dial-up connections ♥ Internet service providers (ISP) They are accessible to anyone regardless of national or geographic boundaries and also at any time of the day. Attacking Methods The attacking method consists of ☺ Gaining access to users account ☺ Gaining privileged access 28 Author: B.
Naresh . Legal liability and Loss of life. Cardholder requests purchase order is encrypted with merchants’ public key. Three basic security concepts Confidentiality Integrity and Availability. SET is becoming the defector standard for security. Duration of the accomplishment : Manually in less than 45 seconds With automation. A significant loss of credibility or market opportunity. Concept realities to the people who use the information are: Authentication.repudiation. As with a traditional transaction. Authorization. A business no longer able to compete. Merchant contacts payment gateway for authorization payment information is encrypted with banks public key Payment is authorized Cardholder is notified of authorization Merchant requests payment capture from gateway 29 1 Card holder 2 2 1 2 2 store front 3 payment gateway 3 2 3 Author: B. they need to have certificates that contain both the banks and their own public keys. Non. A decrease in productivity. The transaction process starts now: The cardholders start the transaction within the store on the internet and the browser authentic the merchant from its public key. Damages inflicted by the attack varies A minor loss of time in recovering from the problem. the customer needs to have a valid account set-up. This standard is designed to allow merchant transactions to occur across the internet. SET is another standard in EDI space.☺ • ☺ ☺ Using the victims system as a launch platform for attacks on other sites. Secure electronic transaction The industry is counting on secure electronic transfer (SET) to accelerate internet electronic commerce. the time is still less. they would there after receive a valid certificate with a public key to authenticate the transaction.
Secure socket layer (SSL) Secure socket layer (SSL) is a technology that encrypts or codes the packets of information sent over the internet so that only the sending and receiving components can reassemble and read the information. Token is issued to the merchant Merchant redeems token for transfer into its bank account Once the price and the product info are in process 2 2 3 3 ϒ The merchant verifies the customer digital signature and then sends the order to the bank with their own certificates and payments information. so the merchant can fill the order and ϒ The above is designed to be very similar to normal ‘store’ transactions. ϒ At the end of the process. Electronic commerce application Secure-HTTP TCP based application protocol Secure socket layer (SSL) Internet protocol (IP) Position of SSL Security tools (or) Mechanism Security transport stacks (STS) Secured sockets layers (SSL) Secure HTTP (S-HTTP) Kerberos Secure transaction mechanisms (STM) Unix security Password security system (PSS) E-mail 30 on time P. sensitive information is still vulnerable to misuse once it is decrypted (decoded and unscrambled) and stored on a merchant server. Encryption is used along with registered certificates that use a third party registration service (or your own registration site) to confirm that your customers are actually connected to your site. Many companies use the SSL method developed by Netscape communication that automatically encrypts data passing between your web browser and a merchant’s server.Naresh . The combination of SSL and certificates make transaction very secure.W smart cards Author: B. the bank verifies the merchant’s signature and payment component of the message and then authorizes payment. However.
There are instances where in computer crimes have taken place in number of ways. one of the prices firms must pay to make their computer secure is to restrict access to them. A few are illustrated below: • In UK. Cryptology Encryption is a fundamental mechanism for many forms of security. it is possible that criminal activities. Ironically. It involves the scrambling of data by use of a mathematical algorithm. Encryption and Decryption: ‘C’ obtains the cipher text but cannot recover the msg without decryption key. Server security Trusting binaries Cryptography Symmetric Methods Asymmetric Internet security • • Protocols isolation Protecting web server with a firewall Firewall ≈ Network firewall ≈ Application firewall Hacking The term “hacker” originally referred to computer professionals who solve complex computer problems. The most effective way of security the contents of electronic data is by the use of encryption. by making computer systems more rigid and expensive. man making positive contribution to the problem of computer induced unemployment. a bank employee reprogrammed the banks central computer so that any spare half pennies involved in calculations were ignored and paid to him. Computer security is a growing business. some time back. and indeed limit their effectiveness. He amassed a big amount and was caught. but this mounted up. But the realistic attitude to crime is to guard against it properly. Hacking is a computer crime in which the criminal breaks into a computer system just for the challenge of doing. Half pennies are not very big.Naresh . “Cryptography is the science of distinguishing message to only the writer and the intended receivers are able to read them”. 31 Author: B. Crime must of course be deployed.
O Purchase order (P.‘A’ encrypts P. Client faces the same problems as servers because an imposter can also impersonate a server.O called plaintext with encryption key ‘B’ decrypts the cipher text with the decryption key and reads the P. IP addresses are used by a weak form of internet authentication. as 32 Author: B. Authentication mechanisms address the problem of identification of individuals and entities requesting service or access. Example: If the request originates from an authorized client. IP source authentication is weak. during which time a manager configures a server with a list of valid IP source addresses.O) encrypted And sent by ‘A’ on the network ‘C’ Hacker Decryption Plain text Key Cipher text Encryption An Authentication It is the name of the process to verify the identity of a user as they log onto a network. many servers are configured to reject a request unless the client is an unauthorized one. because in principle it is frustrated. The server verifies the authorization of the client to undertake the specific task before granting service. The server then examines the source IP addresses on each incoming requests from client computers on the authorized list.Naresh .
without requiring physical security of all hosts on the network. A session key A expiration date ۩ User sends (session key/ticket) ۩ The network service decrypts ۩ Authenticator Application of cryptography technique Digital signature Digital signature is one of the applications of cryptography technique. where data grams pass across intermediates networks and routers. LEONARD ADLEMAN) is as showing in. This is accomplished without relying on authentication by the host operating system. source authentication can be attacked at one of the intermediate routers.Naresh . RON RIVEST. without basing trust on host addresses. It ensures that the sender of message can bind his or her unique identifier onto a message in such a way that message cannot be forged by those who receive them. RSA algorithms using sender 33 Author: B. ۩ User accesses that service by starting a client program on a work station. and under the assumptions that protocol data units travelling along the network can be read. $ The method of generating a digital signature using RSA (1975. $ It is important to note that a digital signature incorporates the concept of both data integrity and source authentication. A user wishes to use a certain network service.discussed. It is an encryption based system that uses secret key encryption designed to authentication means in an open (unprotected) network. if access to those routers is achieved. ۩ The client sends two items to the server A session key and A service ticket ۩ The ticket contains 4 things Name of the user it was used to Address of the work station that the person was using when he acquired the ticket. ADI SHARMIR. modified and inserted at will. $ The effect of digital signature is similar in many respects to that of hand written signature. Methodology The sender of a message block applies RSA algorithm using His/her secret key he output of this function is signature block to which recipient applies. Kerberos It is a popular third party authentication protocol. On the internet.
Necessity of having firewall: Reasons 34 Author: B. No matter how long the files. To make the system feasible for digital business. there can be only two types of firewall mechanisms. $ Almost all firewall performs some sort of internet protocol (IP) packet filtering router. This is called digital signature with a data receiver since the message data is actually contained with the signature block. This is done for security purpose in order to protect a company network from the outsid4e world and unauthorized electronic visitors. the hash code function that reduces the every possible message to a fixed number of bits. Firewall It is a piece of software that regulates who can access.public key. It is software that separates an internal local area network (LAN) from the external internet. There are various ways in which a firewall is put into practice but fundamentally. The hash code can be seen as seal on envelop. All information sent across the network is broken into small chunks of data known as packets or datagram’s that are then reassembled on the receiving computer. This part is called digicash.Naresh PC5 . only a small part of the message encrypted with the private key for signature. the hash function will always be the same length. A firewall is a simple mechanism used to protect a trusted network from a UN trusted one. • Block the traffic • Permits traffic How much of each is done reflects the primary design of the network firewall each company implemented. PC1 PC2 Inside LAN PC3 PC4 Out side Through file server Firewall Outside Internet A firewall is a descriptive term used to refer to a particular system or collection of system that enforces an access control policy between two or more networks.
Naresh . Trojan horse (when a program that appears to do something normal actually contains a trapdoor or attack program) DNS spoofing Social engineering (attack based on deceiving users or administrators at the target site one way is to telephone a user or operate and pretend to be an authorized user) Viruses. Data driven attacks are encoded in normal data. HTML HTML (Hyper Text Markup Language) HTML is of two types † Heading tags † Body tags Heading tags: / attributes of head tags Syntax: Body tags: Syntax: HTML Comments Comments can be included in HTML files by using the following symbol <! (Beginning) ------> (ending tag) HTML Font colors Syntax: <FONT COLOR =”blue” > I ‘am going </FONT> < Body TEXT = “black”> <H1> heading </H1> Font size: Syntax: <FONT SIZE =”+3”> </FONT> FONT FACE 35 Author: B.
Its syntax is more complicated than that of other tag. Anchor tag requires a closing.Naresh .Syntax: < FONT FACE =”Arial”> </FONT> Back ground color Syntax: <BODY BGCOLOR = “blue”> Or <BODY BGCOLOR=”#ooooFF” Paragraph tag The paragraph tag is used to break the text into different paragraphs.usa. Syntax: <A HREF=HTTP://www.html> White house</A> *HREFHyper reference Images: Syntax: <IMG SRC=”lion.Source Syntax & Semantics: There are basically two types of ways to especially how the text should be placed on the browser. They are † Semantic based style type (or) content based style type The most important semantic style types are as follows † Emphasis Tag (<EM>) It is represented with word “EM” the emphasis tag is used for highlighting the text Ex: Meet me in the office It is (<EM> important </EM>) Strong tag: (<STRONG>-------</STRONG>) 36 Author: B.gov/documents/ while house.gif” HEIGHT=”50” WIDTH=”50”> *SRC---. This breaking can be achieved by using the following tags. Syntax: <p> beginning of paragraph </p> closing Anchor tag: The anchor tag ‘A’ is the mechanism by which hyperlinks are placed in a hypertext documents.
Ex: <ADDRESS>………. <VAR> 37 Author: B. ………………………. The text appearing in this tag will be made smaller.It is used to indicate a high level emphasis. Ex: Lots of interesting information about DBMS Can be found in POSTBOOK <BR> <CITE> POST <BR> DBMS<BR> 1996 Edition <BR> </CITE> Here “BR” tag is used as a line break (<BR>) which forces a line to break and continue the text in the next line.e. ……………………. It is used to develop an address back for pages. ………………</ADDRESS> Code Tag: <CODE>………. Address Tag: <ADDRESS>……. <BIG> word</BIG> Variable Tag It is used to represent some file numbers. ………………. </ADDRESS> The address tag is used to indicate an address. </CITE>) The citation tag is used to specify a reference. It is represented with a word “VAR”. </CODE> The code tag is used for specifying program code. </CODE> Small Tag (<SMALL>) Another method of reducing the font size is done by a tag known as small. ………………………. ……………….Naresh . <SMALL> word </SMALL> Big tag: (<BIG>) The big tag plays exactly opposite role of small tag i.. it is used to increase the font size. Ex: <CODE>……. Ex: It is <STRONG> important </STRONG> Citation tag: (<CITE>………..
Naresh . Ex :< U> DBMS </U> was written by post O/P: DBMS was written by post Blink Tag A blink tag is used to create a flashing text Ex :< BLINK> HAI </BLINK> Unordered List † If the order is not important. Ex: H<SUB> 2 </SUB> o O/P: H2O Super script Tag (<SUP>) The superscript tag is used to generate a superscript. Ex: (<I>welcome </I> Strike Tag: (<STRIKE>) It may be used for crossing out a word by having a line drawn through it. X<SUP> 2 </SUP> O/P: X2 Underline Tag (<U>) The underline tag is used to underline text. 38 Author: B. Here the items are numbered with bullets.Syntactic basic styles These types allow the user to tell the browser specifically how we want the text to appear on the screen. we can use the unordered list to represent the items. The important syntactic based styles are as follows: Bold Tag: (<B>) The bold tag is used to make the text in bold style Ex: <B> Hai </B> Italic Tag: (<I>) The Italic tag is used to place a part of text in italic style. Ex: Tooth paste now <STRIKE> 50 </STRIKE> 60 percent off o\p: Tooth paste now 50 60percent off Subscript Tag: (<SUB>) The subscript tag is used to generate a subscript.
A <LI> M.P. G College <UL TYPE= “Circle”> <LI> M.college <UL> <LI> MBA <LI> M.G. B. Sc < LI> M. G College <DL> <DT> <STRONG> M. B.</UL> Ex: <H3> L.. <DD> Ex: <HTML> <H3> L. Com </UL> If the user want to generate open circle symbol to represent item-order TYPE attribute is used Ex: <H3> L. A < /STRONG> <DD> Master of Business Administration </DT> </DL> <HTML> † Nested List: Nested list is a combination of different types of list with in one another.The beginning and ending tags for unordered list are <UL>…. Sc <LI> M. <DT> Definition of each item is defined with a tag known as data definition tag. <HTML> 39 Author: B. P.Naresh . Com </UL> Definition List: Definition lists are unordered list in which each item has two parts. B. A term Its corresponding definition lists are The beginning and ending tags for definition lists are <DL> & </DL> In a definition list each item is represented with a tag known as definition term tag.B. B. P.
Naresh . ……………. Ex: <TABLE BORDER =”3” CELL SPACING =”6”> 40 Author: B. <UL> <LI> ………….. </TABLE> Rows in a table can be created by using a tag known as “row tag” <TR> ………. BORDER: It is used to draw the borders around data items of a table. HTML Table Tag: Tables are created using the table tag ‘Table’ <TABLE> …………….<OL> <LI> ………. …………. </OL> </UL> </OL> </HTML> TABLES: Tables are used to organize the information in a row & column format. There is no table column tag. Syntax: <TABLE BORDER =”3”> Element spacing: “CELL SPACING & CELL PADDING” attributes of a table allow the user to control the width of the divides between rows and columns and the amount of space between information in a cell. <OL> …………. Horizontal & vertical lines are called divides.. ………………. …………….. ………… </TR> Each item in a table is represented with a tag known as data tag <TD> Sometimes we refer data locations as table cells.
<TABLE BORDER =”3” CELL PADDING =”12”> Table header: To include header in a table we use a tag known as header tag i. …………..Naresh . FIRST SEMESTER < TH COLSDAN =”2” SECOND SEMESTER </TABLE> Item positioning: Items in a table can be arranged by using a tag known as “aligning” (ALLIGNING) Ex: ALIGN =”LEFT” ALIGN = “RIGHT” ALLIGN = “CENTRE” Table Caption: Caption can be included in a table by using a tag known as CAPTION.e. <CAPTION> ………………… Ex: < TABLE BORDER =”3” CELL SPACING =”6” CELL PADDING =”12”> < CAPTION ALIGN = “BOTTOM”> <STRONG> It is a simple table </STRONG> </CAPTION> </TABLE> FRAMES: Frames are used to allow the user to divide a browser window in to several independent parts.. Tags: A group of frames in a single browser window is called frame set. <FRAME SET> …………. This is done by using a tag known as <FRAME> 41 Author: B... </FRAME SET> † Once the browser window is positioned we need to tell the browser what to load in to different frames.</TH> Ex: <TABLE BORDER =”3” CELL PADDING =”12” <TR> < TH COLSDAN =”2”>. …………. <TH> …………….
Html” Name = “frame2”> </FRAME SET > </HTML> 42 Author: B.Naresh .*No ending frame tag is required Ex: <HTML> <TITLE> Two vertical frames of the same size </TITLE> </HEAD> <FRAME SET COLS =”50% 50 %”> <FRAME SRC = “SS1.HTML” Name = “frame1”> <FRAME SRC = “ss2.
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