Professional Documents
Culture Documents
E-Commerce
In its simplest form ecommerce is the buying and selling of products
and services by businesses or consumers over the World Wide Web.
People use the term "ecommerce" or "online shopping" to describe
the process of searching for and selecting products in online
catalogues and then "checking out" using a credit card and encrypted
payment processing
Definition
E-commerce describes the process of buying and
selling of products, services and information via
computer networks including internet.
E-commerce is the means to complete online
transaction and integrate the supply chain into the
transaction management process such as receiving
orders, making payments and tracking down the
deliveries or order.
Limitation of Traditional Commerce
Paper work
Delay in transaction
Addition cost of paper, typing, documents storage and handling.
Time consuming
Delay in payment
Difficult to reach to remote customer
Distributor, agents, wholesaler.
E-commerce Benefits
Reduced costs by reducing labour,
Internet Database
Intranet
Firewall
(Secure)
11
Apache HTTP Server
Apache is the results of an ongoing group software
development effort, first developed by Rob McCool at
the University of Illinois in 1994 at the NCSA
Apache has dominated the Web since 1996 because it is
free (open source) and performs efficiently
12
Microsoft Internet Information
Server
Comes bundled with current versions of Microsoft
Windows Server operating systems
Used on many corporate intranets
Supports the use of:
ASP
ActiveX Data Objects
SQL database queries
13
Telnet and FTP Utilities
Telnet
Program that allows users to log on to a computer connected
to the Internet
Telnet protocol
Set of rules used by Telnet programs
File Transfer Protocol (FTP)
Defines formats used to transfer files between TCP/IP-
connected computers
14
Features
Advantages to Organizations
Advantages to Consumers
Advantages to Society
Advantages to Organizations
B2C: www.amazon.com
C2C: www.eBay.com
B2B: www.metro.co.in
C2B: www.priceline.com
Measuring Benefits
Tangible benefits of electronic commerce initiatives include:
Increased sales
Reduced costs
Business
supplies from paper
companies Consumers aggregate to
bulk purchase from Amazon
Amazon orders from
Consumers publishers
Catalog
For example, if you have a large catalog, you can create a parent
category that includes several other categories, known as child
categories.
When customers navigate to the parent category, the child categories
appear; enabling customers to navigate quickly to the category that
contains the products they want.
For example, you could define an "alternate" relationship so that
when one product is viewed, another appears somewhere on your
Web site page as an alternate suggestion.
Merchant account
A merchant account is a type of bank account that allows businesses to accept
payments by payment cards, typically debit or credit cards. A merchant account is
established under an agreement between an acceptor and a merchant acquiring
bank for the settlement of payment card transactions. In some cases a payment
processor, independent sales organization (ISO), or member service provider
(MSP) is also a party to the merchant agreement. Whether a merchant enters
into a merchant agreement directly with an acquiring bank or through an
aggregator, the agreement contractually binds the merchant to obey the
operating regulations established by the card associations.
What is an Internet merchant account?
It's an account with a bank that allows you to process credit cards
online.
How it works
.
Your Online Shop
Payment Gateway
InternetMerchant Account
How it works
Your customer inputs credit card information in Your Online Shop.
The Payment Gateway encrypts data and sends it securely to your
Internet Merchant Account.
The transaction is reviewed for authorisation by the customers
issuing bank.
The result is encrypted and sent back through the gateway.
You get the results and decide whether or not to fulfil the order.
Supply chain management (SCM)
Supply chain management is the integration of the activities that
procure(buy) materials and services, transform them into
intermediate goods and final products, and deliver them through a
distribution system.
But in general, Supplychain management means the management of
upstream and downstream relationships with suppliers and
customers to deliver superior customer value at less cost to the
supply chain as a whole
Enterprise resource planning (ERP)
Enterprise resource planning (ERP) is a business management software
usually a suite of integrated applicationsthat a company can use to
collect, store, manage and interpret data from many business activities,
including:-
Product planning, cost and development
Manufacturing or service delivery
Marketing and sales
Inventory management
Shipping and payment
ERP provides an integrated view of core business processes, often in real-
time, using common databases maintained by a database management
system
ERP software is considered an enterprise application as it is designed
to be used by larger businesses and often requires dedicated teams to
customize and analyze the data and to handle upgrades and
deployment.
So Generally there are lot of ERP package vendors in the
market like,SAP(SAP is an acronym for Systems, Applications and
Products.),Oracle,BANN,JD Edwards etc.Each
vendor is specialized in one or many resources.SAP comes
under ERP Package which gives business solutions to a
business setup in all areas like Finance,Sales,Costing and
materials etc.
SAP
SAP stands for Systems Applications and Products in Data Processing.
SAP is an Enterprise Resource Planning (ERP) system by SAP AG,
company based out of Walldorf in Germany. AG is derived from the
German word AKtiengesellschaft. According to German Language
SAP Stands for Systeme, Anwendungen und Produkte in Der
Datenverarbeitung. SAP software suite that is being implemented as
part of re-engineering and Provides end to end solutions for financial,
logistics, distribution, inventories. Present scenario large number of
companies are using sap software for their day to day business
activities.
SAP
SAP is beautifully and neatly integrated ERP software. SAP is a leader
when it comes to easy integration among all the departments. It
provides industry specific solutions for different industries other then
its basic SAP modules. SAP suit contains SAP FI, CO, SD, MM, PP, HR,
PA and other modules
Procurement
(obtain)
The act of obtaining or buying goods and services. The process
includes preparation and processing of a demand as well as the end
receipt and approval of payment.
EDI
64
Web Portals
Web directories and search engines were some of the first portals
Portals or Web portals
Yahoo!, AOL, Google, etc. are general purpose portals that are launch points
for many people into the web
Numerous portals are specialized for specific interest groups
66
Auction Overview
In an auction, a seller offers an item for sale,
but does not establish a price
Stakeholders:
Bidders (i.e., potential buyers)
Sellers
Intermediaries
Shill bidders place bids on behalf of the seller to
artificially inflate the price of an item
67
Ecommerce
A shopping cart
A payment gateway
A merchant account
The Shopping Cart
The shopping cart software is what keeps track of the products your
customers want to purchase as they surf through your website.
It is the software that powers the "Add to Cart" buttons that you have
probably seen on many e-commerce websites.
Some merchants offer services and do not have a product based
website. Even if you don't sell products on your site, you will still have
some type of software that calculates how much the customer is
supposed to pay you.
The Shopping Cart
Think of the shopping cart as the cashier at the grocery store who
rings through your groceries.
It is their job to figure out how much money you are supposed to pay.
In an e-commerce website, the software performs this job and will
determine how much you owe for the sale.
Once the shopping cart has figured out how much you owe for the
sale, it needs to send this information somewhere so the credit card
can be processed.
This brings us to the second part of every e-commerce transaction -
the payment gateway.
The Payment Gateway
The function of the payment gateway is actually quite easy to
understand.
When you go to a gas station and pay with your credit card, the
attendant swipes your card through a payment terminal.
The payment gateway does the same job as that little electronic
device, except because it's an online transaction the credit card is not
physically swiped through a terminal. Instead the shopping cart
securely encrypts the credit card and order details and sends it off to
the payment gateway to be processed.
The payment gateway will electronically contact the customers card
issuing bank and check to see if they have sufficient credit to pay for
the sale. If so, the card issuing bank will return an authorization and
the funds will be debited from the customers credit card balance.
When those funds are captured from the customers credit card
account, they must go somewhere. This is where the final part of an
e-commerce transaction comes in - the merchant account.
The Public and Private key pair comprise of two uniquely related
cryptographic keys (basically long random numbers). Below is an example
of a Public Key:
3048 0241 00C9 18FA CF8D EB2D EFD5 FD37 89B9 E069 EA97 FC20 5E35
F577 EE31 C4FB C6E4 4811 7D86 BC8F BAFA 362F 922B F01B 2F40 C744
2654 C0DD 2881 D673 CA2B 4003 C266 E2CD CB02 0301 0001
The Public Key is what its name suggests - Public. It is made available to
everyone via a publicly accessible repository or directory. On the other
hand, the Private Key must remain confidential to its respective owner.
Because the key pair is mathematically related, whatever is encrypted with a
Public Key may only be decrypted by its corresponding Private Key and vice versa.
For example, if Bob wants to send sensitive data to Alice, and wants to be sure
that only Alice may be able to read it, he will encrypt the data with Alice's Public
Key. Only Alice has access to her corresponding Private Key and as a result is the
only person with the capability of decrypting the encrypted data back into its
original form.
As only Alice has access to her Private Key, it is possible that only Alice can
decrypt the encrypted data. Even if someone else gains access to the encrypted
data, it will remain confidential as they should not have access to Alice's Private
Key.
Secure Electronic Transaction(SET)
An application-layer security mechanism, consisting of a set of
protocols.
Protect credit card transaction on the Internet.
Companies involved: MasterCard, Visa, IBM, Microsoft, Netscape,
RSA, CyberCash, NetBill
Not an ordinary payment system.
It has a complex technical specification
Secure Electronic Transaction (SET): Protocol
Add a message (if you want to), then click Send Money.
Paypal will send the recipient an email to let them know that you sent them money. If they dont
have a PayPal account, we explain how to sign up for one. PayPal members must confirm their
email address before the money will be credited to their PayPal account.
When you send money, Paypal use your PayPal balance first. If you dont have enough money in
your PayPal balance, paypal will use the payment method you select.
PayPal acts as the middleman holder of money.
How will the person who paid know that I got their payment?
A notification of payment will go to the email address
PayPal Requirements
PayPal is Free for Buyers and for Sending Money to Someone Else. Once a buyer
sets up a Paypal account, then it costs nothing to send money to a vendor. The
funds are withdrawn from the user's credit card or bank account, or both. PayPal
does not charge buyers to send money.
PayPal Commonly Charges Money from Receivers (Sellers) :PayPal will only
charge you to receive funds(money is received by the seller so paypal only charge
from seller not the buyer but for using paypal buyer
If you are sending money to a friend or family member (someone who is not a
registered seller), you can opt to pay for the PayPal surcharge yourself.
Branding
Shared Hosting
Dedicated server
Clustered hosting
1:- Infrastructure,
2:- Services, and
3:- Products and structures
and
seven functional levels
This model clearly builds upon the work undertaken by the
developers of the various layered network protocols or
architectures, which have been developed to explain the
inter-connection of telecommunications networking, such as the OSI
Reference Model.
which use a similar layering approach, where each layer has a
clearly defined area of functionality.
This separation of tasks means that a change at one layer does not
normally affect the other layers, with significant positive implications
for software developers.
The 3-Tier Architecture
This is where the code for each area of responsibility can be cleanly split away from the others
Note here that the presentation layer has no direct communication with the data access layer -
it can only talk to the business layer.
Requests and Responses in the 3 Tier
Architecture
The Rules of the 3 Tier Architecture
The code for each layer must be contained with separate files which
can be maintained separately.
Each layer may only contain code which belongs in that layer. Thus
business logic can only reside in the Business layer, presentation logic
in the Presentation layer, and data access logic in the Data Access
layer.
The Presentation layer can only receive requests from, and return
responses to, an outside agent. This is usually a person, but may be
another piece of software.
The Presentation layer can only send requests to, and receive
responses from, the Business layer. It cannot have direct access to
either the database or the Data Access layer.
The Business layer can only receive requests from, and return
response to, the Presentation layer.
The Business layer can only send requests to, and receive responses
from, the Data Access layer. It cannot access the database directly.
The Data Access layer can only receive requests from, and return
responses to, the Business layer. It cannot issue requests to anything
other than the DBMS which it supports.
Disadvantage of this approach
The use of a similar approach to analysing E-Commerce would have
equivalent benefits in terms of separating out tasks and enabling solutions
to be developed without impact on other E-Commerce activities.
The disadvantage of this approach, however, is that there is less flexibility
because of the sequence of the layers. Why, for example, are there seven
layers?
We believe that the components of Electronic Commerce are constantly
changing over time and as particular technologies are pressed into
service.
The layering approach, which works very well for networking, where the
functions and activities can be fully described and do not evolve outside
the limits of the model, are thus less applicable to the very mutable
functions and activities of E-Commerce.
Kalakota and Whinston's Pillars Framework
Kalakota and Whinston have also developed a generic approach to
providing a framework for Electronic Commerce (Kalakota &
Whinston 1996).
Using a very different scheme from that taken by Zwass, they use the
metaphor of pillars (public policy and technical standards), to
support four infrastructures
(network, multimedia content, messaging, and common business
services)
on top of which they place E-Commerce Applications.
These authors suggest that the elements of a framework for E-Commerce
are a convergence of technical, policy and business concern. This model is
simple to understand and visually attractive but it lacks theoretical depth
and
is not particularly useful for researchers endeavouring to incorporate it
into empirical research projects.
We believe that this model is useful for those who are approaching
Electronic Commerce for the first time
but do not feel that it can be used as a foundation for more detailed
analytical study.
Riggins and Rhee's Domain Matrix
Riggins and Rhee (1998) have used the Harvard matrix approach to identify
a view of E- Commerce based upon type of relationship and
internal/external focus.
This descriptive framework takes as its axes the location of the
application user and type of relationship,
thus essentially distinguishing between intranet-based applications and
those which use either an extranet or the public Internet to provide access
to the
applications concerned.
Such a model is clearly useful to companies which wish to classify their
trading partners into internal and external and, within these, into new and
ongoing relationships it categorises E-Commerce applications into four
categories
which can be helpful in identifying relationships and technology
needs.
Despite these useful characteristics, however, the model is limited in
its identification of E-Commerce types being primarily focused upon
trading relationships.
It would be more difficult to use such a model in the development of,
say, a government-sponsored virtual community such as Victorias
Warrnambool on the Web project. (Warrnambool on the Web 1999)
If you look carefully at those layers you should see that each one
requires different sets of skills:
The Presentation layer requires skills such as HTML, CSS and possibly
JavaScript, plus UI design.
The Business layer requires skills in a programming language so that
business rules can be processed by a computer.
The Data Access layer requires SQL skills in the form of Data Definition
Language (DDL) and Data Manipulation Language (DML), plus
database design.
E-commerce Framework
Framework tells about the detail of how e-commerce can take place.
It defines actually how e-commerce implemented, how online
trading or business can be done.
It defines important components that should be present to do some
transaction
This is where the code for each area of responsibility can be cleanly split away from the others
Note here that the presentation layer has no direct communication with the data access layer -
it can only talk to the business layer.
The Rules of the 3 Tier Architecture
The code for each layer must be contained with separate files which
can be maintained separately.
Each layer may only contain code which belongs in that layer. Thus
business logic can only reside in the Business layer, presentation logic
in the Presentation layer, and data access logic in the Data Access
layer.
The Presentation layer can only receive requests from, and return
responses to, an outside agent. This is usually a person, but may be
another piece of software.
The Presentation layer can only send requests to, and receive
responses from, the Business layer. It cannot have direct access to
either the database or the Data Access layer.
The Business layer can only receive requests from, and return
response to, the Presentation layer.
The Business layer can only send requests to, and receive responses
from, the Data Access layer. It cannot access the database directly.
The Data Access layer can only receive requests from, and return
responses to, the Business layer. It cannot issue requests to anything
other than the DBMS which it supports.
Disadvantage of this approach
The use of a similar approach to analysing E-Commerce would have
equivalent benefits in terms of separating out tasks and enabling solutions
to be developed without impact on other E-Commerce activities.
The disadvantage of this approach, however, is that there is less flexibility
because of the sequence of the layers. Why, for example, are there seven
layers?
We believe that the components of Electronic Commerce are constantly
changing over time and as particular technologies are pressed into
service.
The layering approach, which works very well for networking, where the
functions and activities can be fully described and do not evolve outside
the limits of the model, are thus less applicable to the very mutable
functions and activities of E-Commerce.
Kalakota and Whinston's Pillars Framework
Kalakota and Whinston have also developed a generic approach to providing a framework for Electronic Commerce (Kalakota &
Whinston 1996).
Using a very different scheme from that taken by Zwass, they use the metaphor of pillars (public
policy and technical standards), to support four infrastructures
(network, multimedia content, messaging, and common business services)
on top of which they place E-Commerce Applications.
These authors suggest that the elements of a framework for E-Commerce are a convergence of technical, policy and business
concern. This model is simple to understand and visually attractive but it lacks theoretical depth and is not
particularly useful for researchers endeavouring to incorporate it into empirical research
projects.
We believe that this model is useful for those who are approaching Electronic Commerce
for the first time but do not feel that it can be used as a foundation for more detailed
analytical study.
Riggins and Rhee's Domain Matrix
Riggins and Rhee (1998) have used the Harvard matrix approach to identify a view of E-
Commerce based upon type of relationship and internal/external focus.
This descriptive framework takes as its axes the location of the application user and
type of
relationship, thus essentially distinguishing between intranet-based applications and
those which use either an extranet or the public Internet to provide access to the
applications concerned.
Such a model is clearly useful to companies which wish to classify their trading partners
into internal and external and, within these, into new and ongoing relationships it
categorises E-Commerce applications into four categories
which can be helpful in identifying relationships and technology needs.
New computer users often confuse domain names with universal resource
locators, or URLs, and Internet Protocol, or IP, addresses.
The universal resource locator, or URL, is an entire set of directions, and it
contains extremely detailed information.
The domain name is one of the pieces inside of a URL.
An Internet Protocol, or IP, address is different than a domain name
The IP address is an actual set of numerical instructions.
domain name as a nickname for that code so that can remember easily.
Ip could be 232.17.43.22, for example. However, humans cannot
understand or use that code.
That why name given to numeric which difficult to remember.
For example, in the URL http://www.pcwebopedia.com/index.html,
the domain name is pcwebopedia.com.
Every domain name has a suffix that indicates which top level domain
(TLD) it belongs to. There are only a limited number of such domains.
Because the Internet is based on IP addresses, not domain names,
every Web server requires a Domain Name System (DNS) server to
translate domain names into IP addresses
For example:
gov - Government agencies
edu - Educational institutions
org - Organizations (nonprofit)
mil - Military
com - commercial business
net - Network organizations
ca - Canada
th - Thailand
Difference between HTTP and HTTPS
HTTP, HTTPS
The "S" in HTTPS indicates a secure site.
If you visit a web site or web page, and look at the address in the web
browser.
it will likely begin with the following: http://. This means that the web site
is talking to your browser using the regular 'unsecured' language.
This is why you never ever enter your credit card number in an http web
site
But if the web address begins with https://, your computer is talking to the
web site in a secure code that no one can see.
Difference Between the Internet and the
WWW?
People commonly use the words "Internet" and "Web"
interchangeably.
This usage is technically incorrect.
The Internet is the large container.
the Web is a part within the container.
the Net is the restaurant.
the Web is the most popular dish on the menu
The World Wide Web, or "Web" for short, is a massive collection of
digital pages.
the Web is based on hypertext transfer protocol.
But another protocol you can use like ftp etc.
Only http is www another is not.
The Internet, not the Web, is also used for e-mail, which relies on
SMTP, instant messaging and FTP.
So the Web is just a portion of the Internet
Characteristics of Domain Name
Domain names are restricted to
only the ASCII letters 'a' through 'z' (in a case-insensitive manner).
the digits '0' through '9.
and the hyphen ('-').
Parts of a Domain Name
Each domain name consists of two parts.
Top Level Domain - A top-level domain (TLD) is the part of the
domain name located to the right of the dot. The most common top-
level domains are .COM, .NET, and .ORG. Some other popular top-
level domains are .BIZ, .INFO, .NAME and .IN etc.
Second Level Domain - . The second-level domain name is the part of
the domain name located to the left of the dot. Steps-to-make-your-
own-website is the second-level domain name and represents the
organization or entity behind the internet. Second Level Domain
name must be registered with an Internet Corporation for Assigned
Names and Numbers (ICANN)-accredited registrar.
Domain Name Level
Top Level Domain - A top-level domain (TLD) is the part of the domain
name located to the right of the dot. The most common top-level domains
are .COM, .NET, and .ORG. Some other popular top-level domains are .BIZ,
.INFO, .NAME and .IN etc.
Generic top level maintained by IANA and country code top level reserved
for a country.
Second Level Domain - . The second-level domain name is the part of the
domain name located to the left of the dot.
Third level domain name:-which are written immediately to the left of a
second level Domain.
Each level is separated by a dot or period symbol.
What is a Subdomain?
A subdomain is a domain name that is a part of the main domain.
It is used to organize a website with regard to various functions,
sections, topics, etc.
For example www.google.com is the main domain name.
They have separated news.google.com that handles their news
section of the website as news.google.com
Similarly they have other subdomains too which are other sections of
their main website.
like maps.google.com, news.google.com, video.google.com, etc
What is DNS?
DNS is the acronym for Domain Name System.
This system translates the number format of your IP address to the
word format.
It is done because it is relatively easier to remember words than
numbers.
it is easier to name an e-mail address as service@sitesell.com than
service@216.95.221.39.
The Domain Name System (DNS) is a hierarchical distributed naming
system for computers, services, or any resource connected to the
Internet or a private network
Digital Certificate
An attachment to an electronic message used for security purposes
It is trusted ID card in electronic form that binds a websites public
encryption key to their identity for the purpose of public trust.
The most common use of a digital certificate is to verify that a user sending
a message is who he or she claims to be, and to provide the receiver with
the means to encode a reply.
An individual wishing to send an encrypted message applies for a digital
certificate from a Certificate Authority (CA).
The CA issues an encrypted digital certificate containing the applicant's
public key and a variety of other identification information.
In the physical world, you protect your written correspondence by
putting it in an envelope before posting. In the online world, sending
an email message is like sending a postcard.
it is easy to intercept and read as it travels across the Internet. Instead
of risking disclosure of your private email message,
one option for safeguarding them is to use a digital certificate