SEM IV

DR MUKUND M M
RCU

DR MUKUND M M RCU
Unit-I: Introduction to E-commerce: Meaning
and Concept of E-Commerce, Business Model for
E Commerce; Features of E-Commerce; Element
of E-Commerce; Benefits and Limitations of E-
Commerce; Types of E-Commerce System; B2B,
B2C, C2C, C2B, B2G and G2C. Internet Concept
and Technologies: History of Internet; Ways to
connect to the Internet; Internet Accounts; Public
and Private Network; Applications of Internet.

DR MUKUND M M RCU
Internet Basics

DR MUKUND M M RCU
This lesson includes the following sections:
• The Internet: Then and Now
• How the Internet Works
• Major Features of the Internet
• Online Services
• Internet Features in Application Programs

DR MUKUND M M RCU
The Internet: Then and Now

• The Internet was created by the Advanced Research

Projects Agency (ARPA) and the U.S. Department of
Defense for scientific and military communications.

• The Internet is a network of interconnected networks.

Even if part of its infrastructure was destroyed, data
could flow through the remaining networks.

• The Internet uses high-speed data lines, called

backbones, to carry data. Smaller networks connect to
the backbone, enabling any user on any network to
exchange data with any other user.

DR MUKUND M M RCU
DR MUKUND M M RCU
How the Internet Works

• TCP/IP

• Routing Traffic Across the Internet

• Addressing Schemes

• Domains and Subdomains

DR MUKUND M M RCU
How the Internet Works - TCP/IP

• Every computer and network on the Internet uses

the same protocols (rules and procedures) to control
timing and data format.

• The protocol used by the Internet is the

Transmission Control Protocol/Internet Protocol,
or TCP/IP.

• No matter what type of computer system you

connect to the Internet, if it uses TCP/IP, it can
exchange data with any other type of computer.

DR MUKUND M M RCU
How the Internet Works -
Routing Traffic Across the Internet
• Most computers don't connect directly to the Internet.
Instead, they connect to a smaller network that is
connected to the Internet backbone.

• The Internet includes thousands of host computers

(servers), which provide data and services as
requested by client systems.

• When you use the Internet, your PC (a client)

requests data from a host system. The request and
data are broken into packets and travel across
multiple networks before being reassembled at their
destination.
DR MUKUND M M RCU
DR MUKUND M M RCU
How the Internet Works -
Addressing Schemes

• In order to communicate across the Internet, a

computer must have a unique address.

• Every computer on the Internet has a unique

numeric identifier, called an Internet Protocol (IP)
address.

• Each IP address has four parts – each part a number

between 0 and 255. An IP address might look like
this: 205.46.117.104.

DR MUKUND M M RCU
How the Internet Works -
Domains and Subdomains

• In addition to an IP address, most Internet hosts or

servers have a Domain Name System (DNS) address,
which uses words.
• A domain name identifies the type of institution that
owns the computer. An Internet server owned by IBM
might have the domain name ibm.com.
• Some enterprises have multiple servers, and identify
them with subdomains, such as products.ibm.com.

DR MUKUND M M RCU
DR MUKUND M M RCU
Major Features of the Internet
• The World Wide Web

• E-Mail

• News

• Telnet

• File Transfer Protocol (FTP)

• Internet Relay Chat (IRC)

DR MUKUND M M RCU
Major Features of the Internet -
The World Wide Web

• The World Wide Web is a part of the Internet, which

supports hypertext documents, allowing users to view
and navigate different types of data.
• A Web page is a document encoded with hypertext
markup language (HTML) tags.

• HTML allows designers to link content together via

hyperlinks.

• Every Web page has an address, a Uniform Resource

Locator (URL).

DR MUKUND M M RCU
 Thisaddress
This addressisisfor
foran
an
Internetserver
Internet serverthat
thatuses
uses Thissite
This sitebelongs
belongsto
toaa
Thehypertext
The hypertexttransfer
transferprotocol.
protocol. companynamed
company namedGlencoe.
Glencoe.

Thissite
This siteisison
onthe
thepart
part Tofind
To findthe
thespecific
specificWeb
Webpages
pages
ofthe
of theInternet
Internetknown
known thataccompany
that accompanythisthisbook,
book,your
your
asthe
as theWorld
WorldWide
WideWeb.
Web. browserfollows
browser followsthe
theURL’s
URL’spath
path
toaafolder
to foldernamed
named“norton,”
“norton,”then
then
toaasubfolder
to subfoldernamed
named“online.”
“online.”

DR MUKUND M M RCU
Major Features of the Internet - E-Mail

• Electronic mail (e-mail) is the most popular reason

people use the Internet.

• To create, send, and receive e-mail messages, you need

an e-mail program and an account on an Internet
mail server with a domain name.

• To use e-mail, a user must have an e-mail address,

which you create by adding your user name to the
e-mail server's domain name, as in jsmith@aol.com.

DR MUKUND M M RCU
Major Features of the Internet - News

• One Internet-based service, called news, includes

tens of thousands of newsgroups.

• Each newsgroup hosts discussions on a specific topic.

A newsgroup's name indicates its users' special
topic of interest, such as alt.food.cake.

• To participate in a newsgroup, you need a

newsreader program that lets you read articles that
have been posted on a news server. You can post
articles for others to read and respond to.

DR MUKUND M M RCU
DR MUKUND M M RCU
Major Features of the Internet - Telnet

• Telnet is a specialized service that lets you use one

computer to access the contents of another computer –
a Telnet host.

• A Telnet program creates a "window" into the host so

you can access files, issue commands, and exchange
data.

• Telnet is widely used by libraries, to allow visitors to

look up information, find articles, and so on.

DR MUKUND M M RCU
Major Features of the Internet -
File Transfer Protocol (FTP)
• File transfer protocol (FTP) is the Internet tool used to
copy files from one computer to another.

• Using a special FTP program or a Web browser, you

can log into an FTP host computer over the Internet
and copy files onto your computer.

• FTP is handy for finding and copying software files,

articles, and other types of data. Universities and
software companies use FTP servers to provide visitors
with access to data.

DR MUKUND M M RCU
Major Features of the Internet –
Internet Relay Chat (IRC)

• Internet Relay Chat (IRC) is a service that allows

users to communicate in real time by typing text in a
special window.

• Like news, there are hundreds of IRC "channels,"

each devoted to a subject or user group.

• You can use a special IRC program to participate in

chatroom discussions, but many chatrooms are set up
in Web sites, enabling visitors to chat directly in their
browser window.

DR MUKUND M M RCU
Online Services

• An online service is a company that provides access to

e-mail, discussion groups, databases on various
subjects, and the Internet.

• America Online, CompuServe, and Prodigy are

examples of popular online services.

DR MUKUND M M RCU
Internet-Related Features in Application
Programs

• Popular application programs, such as word

processors and spreadsheets, feature Internet-related
capabilities.

• Using these special features, you may be able to

create content for publication on the Internet or view
content directly from the Internet.

DR MUKUND M M RCU
lesson 19 review

• Name the two organizations that created the network

now called the Internet.

• Explain the importance of TCP/IP to the Internet.

• Describe the basic structure of the Internet.

• List the major services the Internet provides to its

users.

• Identify two key Internet-related features found in

many software applications.

DR MUKUND M M RCU
 Project due

Use WWW to find ten best home pages about

the following ten topics and sort
them by content quality, completeness, and
relevance:
Sri Lanka, New York City, Taiwan Satellite
Images,
Systemic Lupus Erythematosus, Harvard
University, Science Citation Index,
Boeing 777, Trend Micro, Computer Vision,
National Parks in Taiwan.
Each of the ten best home pages must have
different domain name.
DR MUKUND M M RCU
DR MUKUND M M RCU
 CONTENT
S
⚫What is E-Commerce ?
⚫Features, advantages, disadvantages
⚫Origin
⚫Timeline
⚫Business Models
⚫E-Commerce Process

DR MUKUND M M RCU
History of e-commerce
History of ecommerce dates back to the year (1991) when the
internet was made available for commercial purposes
web sites were allowed to use internet for business
transactions
Do business electronically from virtually anywhere in the
world that has a computer.
In 2020 alone, e-commerce generated well over $8000 billion
in retail business and over $10.5 trillion business-to-business
traffic.
At first, the term ecommerce meant the process of execution
of commercial transactions electronically
leading technologies such as Electronic Data Interchange (EDI)
and Electronic Funds Transfer (EFT) were used

DR MUKUND M M RCU
 CONT’D
Factors that impacted e-commerce

Security
wrong usage of credit information
Privacy
security protocol such as HTTPS hypertext
transfer protocol secure

DR MUKUND M M RCU
 What is e-commerce
E-commerce is a short version of the term Electronic
Commerce
transactions related to online buying and selling of products or
services
done using electronic systems such as the Internet and other
computer networks
penetration and spread of the internet has fuelled e-commerce
Examples of e-commerce are electronic funds transfer, supply
chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems
definition of e-commerce in modern the modern times implies
that it typically uses the World Wide Web at least at any point
in the transaction's lifecycle
Online retailers are sometimes known as e-tailers
online retail is sometimes known as e-tail
DR MUKUND M M RCU
⚫Online Transactions
⚫Various Modes of Payment
⚫Legal Aspects
⚫Real Examples: Flipkart, Amazon, eBay,
Alibaba
⚫Contribution in Indian Economy

DR MUKUND M M RCU
 WHAT IS E-COMMERCE ?
⚫ E-commerce is a transaction of buying or
selling online.
⚫ It draws on technologies such as mobile
commerce, electronic funds transfer, supply chain
management, Internet marketing, online transaction
processing, electronic data
interchange (EDI), inventory management systems,
and automated data collection systems.
⚫ Modern electronic commerce typically uses the World
Wide Web for at least one part of the transaction's
life cycle although it may also use other technologies
such as e-mail.
DR MUKUND M M RCU
⚫ Or, in short any commercial activity performed
electronically or online with some technology is
a gift of E-Commerce.

⚫ The World Trade Organization (WTO) distinguishes

six main instruments of electronic commerce:
⚫ The Telephone,
⚫ The Fax,
⚫ The Television,
⚫ Electronic payment and money transfer systems,
⚫ Electronic Data Interchange, and
⚫ The Internet

DR MUKUND M M RCU
DR MUKUND M M RCU
DR MUKUND M M RCU
DR MUKUND M M RCU
DR MUKUND M M RCU
 FEATURES
⚫ Non-Cash Payment − E-Commerce enables use of
credit cards, debit cards, smart cards, electronic
fund transfer via bank's website and other modes of
electronics payment.
⚫ 24x7 Service availability − E-commerce automates
business of enterprises and services provided by
them to customers are available anytime, anywhere.
Here 24x7 refers to 24 hours of each seven days of a
week.
⚫ Advertising / Marketing − E-commerce increases the
reach of advertising of products and services of
businesses. It helps in better marketing management
of products / services.
DR MUKUND M M RCU
⚫ Improved Sales − Using E-Commerce, orders for the
products can be generated any time, any where
without any human intervention. By this way,
dependencies to buy a product reduce at large and
sales increases.
⚫ Support − E-Commerce provides various ways to
provide pre sales and post sales assistance to
provide better services to customers.
⚫ Inventory Management − Using E-Commerce,
inventory management of products becomes
automated. Reports get generated instantly when
required. Product inventory management becomes very
efficient and easy to maintain.
⚫ Communication improvement − E-Commerce
provides ways for faster, efficient, reliable
communication with customers and partners.
DR MUKUND M M RCU
DR MUKUND M M RCU
DR MUKUND M M RCU
DR MUKUND M M RCU
DR MUKUND M M RCU
DR MUKUND M M RCU
 ADVANTAGES
⚫E-Commerce advantages can be
broadly classified in three major
categories:
⚫Advantages to Organizations
⚫Advantages to Consumers
⚫Advantages to Society.

DR MUKUND M M RCU
 Advantages to Organizations
⚫ Using E-Commerce, organization can expand their
market to national and international markets with
minimum capital investment. An organization
can easily locate more customers, best suppliers
and suitable business partners across the globe.
⚫ E-Commerce helps organization to reduce the cost to
create process, distribute, retrieve and manage the
paper based information by digitizing the information.
⚫ E-commerce improves the brand image of the
company.

DR MUKUND M M RCU
⚫ E-commerce helps organization to provide better
customer services.
⚫ E-Commerce helps to simplify the business
processes and make them faster and efficient.
⚫ E-Commerce reduces paper work a lot.
⚫ E-Commerce increased the productivity of the
organization. It supports "pull" type supply
management. In "pull" type supply management, a
business process starts when a request comes from a
customer and it uses just-in-time manufacturing
way.

DR MUKUND M M RCU
 Advantages to Customers
⚫ 24x7 support. Customer can do transactions for the
product or enquiry about any product/services
provided by a company any time, any where from
any location. Here 24x7 refers to 24 hours of each
seven days of a week.
⚫ E-Commerce application provides user more
options and quicker delivery of products.
⚫ E-Commerce application provides user more
options to compare and select the cheaper and
better option.

DR MUKUND M M RCU
⚫A customer can put review comments about a product and
can see what others are buying or see the review comments
of other customers before making a final buy.

⚫E-Commerce provides option of virtual auctions.

⚫Readily available information. A customer can see the

relevant detailed information within seconds rather than
waiting for days or weeks.

⚫E-Commerce increases competition among the

organizations and as result organizations provides
substantial discounts toMcustomers.
DR MUKUND M RCU
 Advantages to Society
⚫ Customers need not to travel to shop a product
thus less traffic on road and low air pollution.
⚫ E-Commerce helps reducing cost of products so
less affluent people can also afford the products.
⚫ E-Commerce has enabled access to services and
products to rural areas as well which are otherwise
not available to them.
⚫ E-Commerce helps government to deliver public
services like health care, education, social services
at reduced cost and in improved way.
DR MUKUND M M RCU
 Disadvantages
⚫E-Commerce disadvantages can be
broadly classified in two major categories:
⚫Technical disadvantages
⚫Non-Technical disadvantages

DR MUKUND M M RCU
 Technical Disadvantages
⚫ There can be lack of system security, reliability or standards owing to poor
implementation of e-Commerce.

⚫ Software development industry is still evolving and keeps changing rapidly.

⚫ In many countries, network bandwidth might cause an issue as there is

insufficient telecommunication bandwidth available.

⚫ Special types of web server or other software might be required by the

vendor setting the ecommerce environment apart from network
servers.

⚫ It becomes difficult to integrate E-Commerce software or website with the

existing application or databases.

⚫ There could be software/hardware compatibility issue as some E- Commerce

software may be incompatible with some operating system or any other
component.
DR MUKUND M M RCU
 Non-Technical Disadvantages
⚫ Initial cost: The cost of creating / building E-Commerce application in-
house may be very high.

⚫ There could be delay in launching the E-Commerce application

due to mistakes, lack of experience.

⚫ User resistance: User may not trust the site being unknown faceless seller. Such
mistrust makes it difficult to make user switch from physical stores to
online/virtual stores.

⚫ Security/ Privacy: Difficult to ensure security or privacy on online

transactions.

⚫ Lack of touch or feel of products during online shopping. E- Commerce

applications are still evolving and changing rapidly.

⚫ Internet access is still not cheaper and is inconvenient to use for many potential

customers like one living M M RCUvillages.

in remote
DR MUKUND
 Business Models
⚫ E-Commerce or Electronics Commerce
business models can generally categorized in
following categories:-
⚫ Business - to - Business (B2B)
⚫ Business - to - Consumer (B2C)
⚫ Consumer - to - Consumer (C2C)
⚫ Consumer - to - Business (C2B)
⚫ Business - to - Government (B2G)
⚫ Government - to - Business (G2B)
⚫ Government - to - Citizen (G2C)

DR MUKUND M M RCU
 Business-to-Consumer
(B2C)
⚫Common notion about e-commerce is that it is a
business selling something through an online
interface to a consumer. And this is the Business-
to-Consumer (B2C) model. The most widely
known ecommerce businesses, such as Flipkart,
Amazon, etc. are ones where a retailer sells
directly to a consumer.

DR MUKUND M M RCU
DR MUKUND M M RCU
 Business-to-Business
⚫ Website following
(B2B) B2B business model sells its product
to an intermediate buyer who then sells the product
to the final customer.
⚫ As an example, a wholesaler places an order from a
company's website and after receiving the
consignment, sells the end product to final
customer who comes to buy the product at
wholesaler's retail outlet.

DR MUKUND M M RCU
DR MUKUND M M RCU
 Consumer-to-Business (C2B)
⚫ In a consumer-to-business (C2B) model, consumers
sell products and services to businesses, instead of it
being the other way around. Example - Freelancer
websites elance.com, where the end-user lists jobs
that businesses (either individual or larger
businesses) can buy from them. In a way, job portals
are also C2B as
here, the ‘end-user’ (the prospective employee) lists
their ‘product’ (resume) to attract businesses to
hire them.

DR MUKUND M M RCU
DR MUKUND M M RCU
 Consumer-to-Consumer
(C2C)
⚫In a consumer-to-consumer (C2C) model, the
ecommerce website serves to facilitate the
transaction between two consumers. Auction sites
such as eBay (specifically when items are sold by
individuals, rather than businesses listing
products for auction) is a classic example of C2C
e- commerce model.

DR MUKUND M M RCU
DR MUKUND M M RCU
 Business-to-Government (B2G)
⚫ B2G model is a variant of B2B model. Such websites
are used by government to trade and exchange
information with various business organizations. Such
websites are accredited by the government and
provide a medium to businesses to submit application
forms to the government.

DR MUKUND M M RCU
 Government - to - Business (G2B)
⚫ Government uses G2B model to approach business
organizations. These models support auctions,
tenders and application submission functionalities.

DR MUKUND M M RCU
 Government-to-Citizen (G2C)
⚫ Government uses G2C model to approach citizens
directly. Examples for such models can be websites
providing services like registration for birth, marriage,
etc. A main objective of G2C websites is to reduce
average time for servicing people’s requests for
various government linked services.

DR MUKUND M M RCU