E-COMMERCE B.Tech VII semester - R18 LECTURE NOTES ACADEMIC YEAR: 2021-2022 Prepared By Ms . Rasmita Kumari Mohanty, Assistant Professor , CSE INSTITUTE OF AEKUNAU ICAL ENGINEERING Autonomous Dundigal, Hyderabad - 500 043 COMPUTER SCIENCE AND ENGINEERINGSYLLABUS UNIT-I__ | INTRODUCTION TO ELECTRONIC COMMERCE Electronic Commerce: Frame work, media coverage; anatomy of e-commerce applications: E-commerce Consumer applications, F-ecommerce organization applications UNIT-11 | ELECTRONIC PAYMENT SYSTEMS “Types of electronic payment systems, Digital token based electronic payment system: E-cash, properties ‘of e-cash, electronic cash in action, business issues and electronic cash, operational risk and electronic Cash, electronic checks; smart cards and electronic payment system; Credit card based electronic payment system: Risk and electronic payment system: Designing electronic payment system UNIT-1 _ | PERFORMANCE OF TRANSMISSION LINES Tnter organizational commerce: Electronic data interchange, electronic data interchange implementation, and value added networks; Intra organizational commerce: Work flow, automation customization and internal commerce, supply chain management, Corporate digital library: Document library, digital document types, corporate data warehouses; Advertising and marketing: Information based marketing, advertising on internet, on-line marketing, Process, market research, UNIT-IV__ | CONSUMER SEARCH AND RESOURCE DISCOVERY Search and resource discovery paradigms, information search and retrieval, commerce catalogues, Information filtering. unrr-v | MULTIMEDIA “Multimedia: Key multimedia concepts, digital video and electronic commerce, desktop video processing, desktop video conferencing. ‘Text Books: 1. Ravi Kalakata, Whit ton Andrew B, Frontiers of Electronic Commerce, Pearson, 1" Edition, 1996. Reference Books: + David Whitley, E-Commeree-Strategy, Technologies and Applications, Tata McGraw-Hill, 27 Edition, 2000, 1, Kamlesh K. Bajaj, E-Commerce the Cutting Edge of Business, Tata McGraw-Hill, 1" Edition, 2005 Christopher Westland, Theodore H. K Clark, Global Electronic Commerce- Theory and Case Studies, University Press, Ist Edition, 1999.UNIT - 1 INTRODUCTION TO ELECTRONIC COMMERCECourse Outcomes Mapped To Unit- I: Students will be able to: co ‘Course Outcomes Blooms taxonomy COT | Understand the basic concepts of E-Commerce and its applications | Understand for buying and selling the product online. COZ | Explain business-to-consumer, business-to-business, and intra Understand organizational models to develop an internet trading relationships. Program Outcomes And Program Specific Outcomes Mapped To Unit- 1: Program Outcomes POT Engineering knowledge: Apply the knowledge of mathematics, science, engineering fundamentals, and a engineering specialization to the solution of complex engineering problems, PSO1 | Analyze. Design, investigate, simulate and/or fabricate/commission the electrical system involving generation, transmission, distribution and utilization of electrical energy Mapping Of CO(s) With PO(s) , PSO(s) For Unit-I: Program Course Program Outcomes Specific Outcomes Outcomes 1) 2/3 | 4[s|o}7}8 | 9] so] mt) 1] 1 | 2] 3 col Viv}y coz 1 vINTRODUCTION commerce means using the Internet and the web for business transactions and/or commercial transactions, which typically involve the exchange of value (e.g., money) across organizational or individual boundaries in return for products and services. + Electronic commerce is modem business methodology that addresses the needs of organizations, merchants and consumers to cut costs while improving the quality of goods and services and increasing the speed of service delivery. + e-commerce is associated with the buying and selling of information, products and services over the Internet OVERVIEW OF E-COMMERCE. E-Commerce or Electronics Commerce is a methodology of modern business, which addresses the need of business organizations, vendors and customers to reduce cost and improve the quality of goods and services while increasing the speed of delivery. Ecommerce refers to the paperless exchange of business information using the following ways = ‘+ Electronic Data Exchange (EDI) © Electronic Mail (e-mail) ‘* Electronic Bulletin Boards ‘+ Electronic Fund Transfer (EFT) ‘© Other Network-based technologies ‘en ‘eon E-Commerce provides the following features — ymmerce enables the use of credit cards, debit cards, smart cards, bank's website, and other modes of electronics payment. © Non-Cash Payment ~ E electronic fund transfer vi + 24x7 Service availability — E-commerce automates the business of enterprises and the way they provide services to their customers. It is available anytime, anywhere.and ‘+ Advertising / Marketing - E-commerce increases the reach of advertising of produc services of businesses. It helps in better marketing management of products/services. Advantages E-Commerce advantages can be broadly classified in three major categories ~ + Advantages to Organizations + Advantages to Consumers + Advantages to Society Advantages to Organizations + Using e-commerce, organizations can expand their market to national and intemational markets with minimum capital investment, An organization can casily locate more customers, best suppliers, and suitable business partners across the globe. commerce helps organizations 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. mmmerce helps organization to provide better customer services. + E-commerce helps to simplify the business processes and makes them faster and efficient Advantages to Organizations + E-commerce reduces the paper work. + E-commerce increases the productivity of organizations. 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. Advantages to Society + Customers need not travel to shop a product, thus less traffic on road and low air pollution, + E-commerce helps in reducing the cost of products, so less affluent people can also afford the products. + E-commerce has enabled rural areas to access services and products, which are otherwise not available to them, E-commerce helps the government to deliver public services such as healthcare, education, social services at a reduced cost and in an improved manner DisAdvantages ‘The disadvantages of e-commerce can be broadly classified into two major categories — ‘+ Technical disadvantages ‘+ Non-Technical disadvantages‘Technical Disadvantages + There can be lack of system security, reliability or standards owing to poor implementation of e-commerce. + The software development industry is still evolving and keeps changing rapidly. + In many countries, network bandwidth might cause an issue. + Special types of web servers or other software might be required by the vendor, setting the e-commerce environment apart from network servers. + Sometimes, it becomes difficult to integrate an e-commerce software or website with existing applications or databases. + There could be software/hardware compatibility issues, as some e-commerce software ‘may be incompatible with some operating system or any other component. Non-Technical Disadvantages cost - The cost of ereating/building an e-commerce application in-house may be very high, There could be delays in launching an e-Commerce application due to mistakes, and lack of experience. + User resistance - Users may not trust the site being an unknown faceless seller. Such mistrust makes it difficult to convince traditional users to switch from physical stores to online/virtual stores. + Security Privacy - It is difficult to ensure the security or privacy on online transactions + Lack of touch or feel of products during online shopping is a drawback. + E-commerce applications are still evolving and changing rapidly. + Internet access is still not cheaper and is inconvenient to use for many potential customers, for example, those living in remote villages. Business Models E-commerce business models can generally be categorized into the following ‘+ Business - to - Business (B2B) ‘+ Business - to - Consumer (B2C) ‘+ Consumer = to - Consumer (C2C) ‘© Consumer - to - Business (C2B) Business - to — Business A website following the B2B business model sells its products 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 the final customer who comes to buy the product at one of its retail outlets,inane organvation | ‘Consumer - to— Consumer ‘A website following the C2C business model helps consumers to sell their assets like residential property, cars, motorcycles, ete., or rent a room by publishing their information on the website. Website may or may not charge the consumer for its services. Another consumer may opt to buy the product of the first customer by viewing the post/advertisement on the website. ‘Consumer - to— Business In this model, a consumer approaches a website showing multiple business organizations for a particular service. The consumer places an estimate of amount he/she wants to spend for a particular service. For example, the comparison of interest rates of personal loan/car loan provided by various banks via websites. A business organization who fulfills the consumer's requirement within the specified budget, approaches the customer and provides its services..Framework of e-commerce Common Business Services infrastructure << Messaging and Information Distribution Infrastructure ‘Multimedia content and Network Publishing Infrastructure Network Infrastructure Elements of the framework: — + On the I- way the form of e messaging software moves the information from one point to another in mail, EDI, or point-to-point file transfers, + Encryption and decryption methods have been developed to ensure security of the contents while traveling the I-way and at their destination and numerous electronic payment schemes are being developed to handle highly complex transactions with high reliability + In information traffic, public policy issues deal with the cost of accessing information, regulation to protect consumers from fraud and to protect their right to privacy and the policing of global information traffic to detect information pirating Standards are crucial in the world of global e-commerce to ensure not only seamless and harmonious integration across the transportation network but access of information on any type of device the consumer Anatomy of E-Commerce + Multimedia Content for E-Commerce Applications + Multimedia Storage Servers & E-Commerce Applications i, Client-Server Architecture in Electronic Commerce ii, Intemal Processes of Multimedia Servers iii, Video Servers & E-Commerce + Information Delivery/Transport & E-Commerce Applications + Consumer Access Devices Multimedia Content for E-Commerce Applications+ Multimedia content can be considered both fuel and traffic for electronic commerce applications. + The technical definition of multimedia is the use of digital data in more than one format, such as the combination of text, audio, video, images, graphics, numerical data, holograms, and animations in a computer file/document. See in Fig, + Multimedia is associated with Hardware components in different networks. + The Accessing of multimedia content depends on the hardware capabilities of the customer. + Multimedia Storage Servers & E-Commerce Applications + E-Commerce requires robust servers to store and distribute large amounts of digital content to consumers, + These Multimedia storage servers are large information warehouses capable of handling various content, ranging from books, newspapers, advertisement catalogs, movies, ‘games, & X-ray images. + These servers, deriving their name because they serve information upon request, must handle large-scale distribution, guarantee security, & complete reliability Client-Server Architecture in Electronic Commerce “All e-commerce applications follow the client-server model Clients are devices plus software that request information from servers or interact known as message passing Mainframe computing , which meant for “dump” “The client server model, allows client to interact with server through request-reply sequence governed by a paradigm known as message passing. “The server manages application tasks, storage & security & provides scalability-ability to add ‘more clients and client devices( like Personal digital assistants to Pe’s ii, Internal Processes of Multimedia Servers “The internal processes involved in the storage, retrieval & management of multimedia data objects are integral to e-commerce applications +A multimedia server is a hardware & software combination that converts raw data into usable information & then dishes out. It captures, processes, manages, & delivers text, images, audio & video. “It must do to handle thousands of simultaneous users. “Include high-end symmetric multiprocessors, clustered architecture, and massive parallel systems.ideo Servers & E-Commerce The electronic commerce applications related to digital video will include 1. Telecommunicating and video conferencing 2.G ographical information s cms that require storage & navigation over maps 3. Corporate multimedia servers 4, Postproduction studios 5, shopping kiosks. +Consumer applications will include video-on-demand. “The figure which is of video-on demand consist video servers, is an link between the content providers (media) & transport providers (cable operators) e-commerce consumer Applications We look at the following concepts in some detail 1, Basie banking services Home shopping Home entertainment Micro transaction for information Basic Banking Services The concepts under basic banking services are what a normal customer would be transacting with his bank most of the time. They are mainly related to personal finances. It can be safely be presumed that most of normal transactions that a customer has with his bank can be classified into the following 1. Checking his account statements 2. Round the clock banking (ATM) 3. Payment of bills etc. 4, Pund transfer Indeed most of these can be done through telephone with suitable passwords ete, except round the clock banking. The concept of Automated Teller Machines is to allow the customer to draw ‘money from his account at any part of the day (or night) In fact, A'TMs are today thought to be one single concept that changes the way banks functioned, The customer need not go to the bank at all for his most important service. In other words, both the bank and the customer became faceless to each other. But it helped the customer by ensuring that he need not modify his working schedule to visit the bank.At the same time, the banks need not resort to concept like split hours, opening on holidays et to project themselves as customer friendly. Home Shopping + The next example is home shopping, For simplicity, we presume it is television based shopping. It may be noted that this concept is picking up now in India in a small wa wherein the channels set apart only a very small portion of their broadcasting time to teleshopping. + In the simplest case, the channels describe the various aspects of their product and the customer can order items over phone. The goods are delivered to his home and payment can be made in the normal modes. + Ina more sophisticated version, orders can be placed online (through computers) and payment also can be made through credit/debit cards. It may be noted that several concepts of traditional marketing like negotiation, trial testing etc. are missing from this, scheme and itis most suitable for those customers who are almost sure of what they need to buy who are too busy to go to the shops. * Otherwise, there is hardly any concept of interaction and there is little scope to ensure the quality of product,after sales services ete. Home Entertainment + The next example of this type of commerce is home entertainment. Dubbed online movies, itis possible for the user to select a movie/CD online and make his cable operator play the movie exclusively for him (movie on demand) cause against payment. + Payment can be either online/billed to his account. It is also possible to play interactive ‘games online/download them to your computer to play .the concept of downloading games/news etc, at a cost to the mobiles is also a similar concept. + Itmay be noted that in all these cases, the physical movement of the customer /trader is avoided, of course, the computer need not always be a part of the deal Micro Transactions for Information + The telephone directories provide a basic type of micro transaction. If you want by one particular of item- say — books — they list the addresses and phone numbers of the various book dealers whom you may contact. + Similar facilities are available on the intemet- may be for number of items and also with more details. IT may include detailed catalogues, other related information ete. of course, the customer has to pay a small charge for visiting the site- each time he visits the sit. + This can be thought of as an extension of the earlier described television based ordering. ‘You don’t have to order only those items that are shown in the computer, but search for an item that you need. Also ordering is on line. Some preliminary two way interaction are also possible.E-commerce Organization Applications + Changing Business Environment ~The traditional business environment is changing rapidly as customers and businesses seek the flexibility to change trading partners, platforms, carriers, and networks at will. The Information Superhighway allow business to exchange information among constantly changing sets of customers, suppliers, and research collaborators in government and academia on a global basis. It will become a powerful business tool that no organization can do without + Marketing and Electronic commerce onic commerce is forcing companies to rethink the existing ways of doing target marketing, relationship marketing, and event marketing Interactive marketing is accomplished in electronic markets _via interactive multimedia catalogs that give the same look and feel as a shopping channel. Consumer information —_ services are a new type of catalog business. + Inventory Management and Organizational Applications — One often-targeted business process is inventory management, Just-in-time Manufacturing - Just-in-time is viewed as an integrated management system consisting of a number of different management practices dependent on the — characteristics of specific plants. ‘The JIT is based on two principles » Elimination of waste » Empowering workers + Inventory Management and Organizational Applications = The following management practices are typically associated with JIT systems + Focused factors + Reduced set-up times + Group technology + Total productive maintenance + Multifunction employees + Uniform workloads + JIT purchasing + Total quality control + Quality circles Inventory Management and Organizational Applications + Quick Response Retailing: aE RESP TORTS a VersION OF ITT purchasing TaATOTed Tor Tecanng,+ QR provides fora flexible response to product ordering and lowers costly inventory levels. + QR retailing focuses on market responsiveness w Teves of stocks. le: maintaining low ‘Supply Chain Management + Inventory Management: The goal is to shorten the order-ship-bill cycle. + Distribution Management: The goal is to move documents related to shipping. Paperwork that typically took days to cycle in the past can now be sent inmoments and contain more accurate data, thus allowing improved resource planning, + Channel Management: The goal is to quickly disseminate information about changing operational conditions to trading partners. Electronically linking production with their international distributor and reseller networks eliminates thousands of labor hoursper week in the process.UNIT -2 ELECTRONIC PAYMENT SYSTEMjurse Outcomes Mapped To Unit- Il : Students will be able to: co ‘Course Outcomes Blooms taxonomy COS | Demonstrate the retailing procedure in E-commerce to expertise in market res arch effectively. CO7 | Understand develop ommerce and web based applications to built and Understand commerce designs Program Outcomes And Program Specific Outcomes Mapped To Unit POT PO2 PO3 Program Outcomes ] Engineering knowledge: Apply the knowledge of mathematics, science, engineering fundamentals, and Problem analysis: Identify, formulate, review research literature,and analyze complex engineering problems reaching substantiated conclusions using first principles of mathematics, natural sciences, and engineering sciences. Design/development of solutions: Design solutions for complex engineering problems and design system components or processes that meet, the specified needs with appropriate consideration for the public health and safety, and the cultural, societal, and environmental considerations. PSO2 Focus on mobile and web applications development and learn the emerging technologies and frameworks in demand with employers and contemporary challenges. Mapping Of CO(s) With PO(s) , PSO(s) For Unit-II: Program Specific Course rogram Outcomes (POs) Outcomes Program Outcomes (POS) Outcomes (PSOs) (Cos) i 2 fb [+k bP > lw )ujah 3 cos TW COTrronic Payment Systems + E-commerce sites use electronic payment, where electronic payment refers to paperless ‘monetary transactions. Electronic payment has revolutionized the business processing by reducing the paperwork, transaction costs, and labor cost. + Being user friendly and less time-consuming than manual processing, it helps business organization to expand its market reach/expansion. Listed below are some of the modes of electronic payments ~ + Credit Card + Debit Card + Smart Card + E-Money + Electronic Fund Transfer (EFT) Credit Card + Payment using credit card is one of most common mode of electronic payment, Credit, card is small plastic card with a unique number attached with an account. It has also a magnetic strip embedded in it which is used to read credit card via card readers. When a customer purchases a product via credit card, credit card issuer bank pays on behalf of the customer and customer has a certain time period after which he/she can pay the eredit card bill, It is usually credit card monthly payment cycle. + The eard holder — Customer + The merchant ~ seller of product who can accept credit card payments. + The card issuer bank ~ card holder's bank + The acquirer bank ~ the merchant's bank + The card brand ~ for example , visa or Mastercard. Credit Card Payment Process + Bank iss and activates a credit card to the customer on his/her request Step + The customer presents the credit card information to the merchant site or to the merchant from whom he/she wants to purchase a product/service. Ste + Merchant validates the customer’ identity by asking for approval from the card brand company.Step * Card brand company authenticates the credit card and pays the transaction by credit. Merchant keeps the sales slip.Step * Merchant submits the sales slip to acquirer banks and gets the service charges paid to him/her Step + Acquirer bank requests the card brand company to clear the credit amount and gets the payment Step 6Now the card brand company asks to clear the amount from the issuer bank and the amount gets transferred to the card brand company.Debit CardDebit Card + Debit card, like credit card, is a small plastic card with a unique number mapped with the bank account number. It is required to have a bank account before getting a debit card from the bank. * The major difference between a debit card and a credit card is that in case of payment through debit card, the amount gets deducted from the card's bank account immediately and there should be sufficient balance in the bank account for the transaction to get completed; + whereas in case of a credit card transaction, there is no such compulsion, + Debit cards free the customer to carry cash and cheques. Even merchants accept a debit card readily. Having a restriction on the amount that can be withdrawn in a day using a debit card helps the customer to keep a check on his/her spending, Smart Card + Smart card is again similar to a credit card or a debit card in appearance, but it has @ small microprocessor chip embedded in it. It has the capacity to store a customer’s work- related and/or personal information. Smart cards are also used to store money and the amount gets deducted after every transaction. + Smart cards can only be accessed using a PIN that every customer is assigned with. Smart cards are secure, as they store information in encrypted format and are less expensive/provides faster processing, Mondex and Visa Cash cards are examples of smart cards. E-Money + E-Money transactions refer to situation where payment is done over the network and the amount gets transferred from one financial body to another financial body without any involvement of a middleman, E-money transactions are faster, convenient, and saves lot of time, + Online payments done via credit cards, debit cards, or smart cards are examples of emoney transactions. Another popular example is e-cash. In case of e-cash, both customer and merchant have to sign up with the bank or company issuing e-cash Electronic Fund Transfer + Itis.a very popular electronic payment method to transfer money from one bank account to another bank account. Accounts can be in the same bank or different banks. Fund transfer can be done using ATM (Automated Teller Machine) or using a computer. + Nowadays, internet-based EFT is getting popular. In this case, a customer uses the website provided by the bank, logs in to the bank's website and registers another bank account. He’she then places a request to transfer certain amount to that account. + Customer's bank transfers the amount to other account if it is in the same bank, otherwise the transfer request is forwarded to an ACH (Automated Clearing House) to transfer the amount to other account and the amount is deducted from the customer's account. Once the amount is transferred to other account, the customer is notified of the fund transfer by the bank.Digital token based electronic payment system The digital token based payment system is a new form of electronic payment system which is based on electronic tokens rather than e-cheque or e-cash. The electronic tokens are generated by the bank or some financial institutions. Hence we can say that the electronic tokens are equivalent to the cash which are to be made by the bank Categories of Electronic Tokens:~ Cash or Real Time:- 1 In this mode of electronic tokens transactions takes place via the exchange of electronic currency (¢-cash). 2. Debit or Prepaid:- In this electronic payment system the prepaid facilities transactions of information user pay in advance electronic purses ete. are provided. It means that for shnology are used in smart card, 3. Credit or Postpaid;- ‘These types of electronic token based on the identity of customers which issue a card, their authentication and verification by a third party. In this system the server authenticate the customers and then verify their identity through the bank. After all these processing the transaction take place. Example is E-Cheques. ‘The Digital Token based system have following issues for which they are established: 1. Nature of transaction for which instrument is designed:~ In this category, the design issues of token take place. It may be designed to handle micro payments. It may be designed for conventional products. Some tokens are designed specifically and other generally. The design issue involve involvement of parties, purchase interaction and. average amount, 2, Means of Settlement:- The Digital Tokens are used when their format must be in cash, credit, electronic bill payments ete. Most transaction settlement methods use credit cards while other used proxies for values. 3. Approach to Security, Anonymity and Authentication:- Since the electronic token are vary from system to system when the business transaction take place. So it is necessary to secure it by intruders and hackers. For this purpose various security features are provided with electronic tokens such as the method of encryption. The encryption ‘method use the digital signatures of the customers for verification and authentication. 4. Risk Factors:- The electronic tokens may be worthless and if the customer have currency on token than nobody will accept it, If the transaction has long time between delivery of products and payments to merchants then merchant exposes to the risk. so it is important to analysis risk factor in electronic payment system. E-cash Definition: In providing a simple definition of E-Cash, also known as electronic cash, it is a digital money product that provides a way to pay for products and services without resorting to paper or coin currency. Properties of e-cash:Monetary value: Monetary value is present if the electronic cash is backed by hard currency, a bank-certified cashier's check or bank-authorized credit. When e-cash cteated by one bank is accepted by the others, reconciliation must occur without any problems, Interoperability Electronic cash must be interoperable. To be interoperable, electronic cash must be exchangeable for goods, services, paper cash, other electronic cash, lines of credit, or any purpose for which money is used. Interoperability depends on the acceptance of electronic cash by an international clearinghouse because parties to most transactions will not be using the same bank. Storable and Retrievable:- Electronic cash must be storable and retrievable. Remote storage and retrieval will allow users to exchange e-cash from office, home or while traveling. The cash could be stored on a remote computer's memory, e.g. smart cards, electronic wallets. Security:- Electronic cash should not be easy to alter or copy while being stored or exchanged. Procedures ‘must be in place to verify that the electronic cash is spent only once i. double spending issue should be taken care of, When used, e-cash is transferred directly and immediately to the participating merchants and vending machine. Similar to regular cash, e-cash enables transactions between customers without the need for banks or other third parties. ‘Smart Card and electronic payment system ‘A smart card, chip card, or integrated circuit card (ICC) is any pocket-sized card with embedded integrated circuits. Smart cards are made of plastic, generally polyvinyl chloride, but sometimes polyethylene terephthalate based polyesters, acrylonitrile butadiene styrene or polycarbonate, Smart cards can provide identification, authentication, data storage and application processing, Smart cards may provide strong security authentication for single sign-on (SSO) within large organizations ‘Types of Smart Cards:Contact smart cards Contact smart cards have a contact area of approximately 1 square centimeter (0.16 sq in), comprising several gold-plated contact pads. These pads provide electrical connectivity when inserted into a reader,{8] which is used as a communications medium between the smart card. and a host (e.g., a computer, a point of sale terminal) or a mobile telephone. Cards do not contain batteries; power is supplied by the card readerContactless smart cards: A second card type is the contactless smart card, in which the card communicates with and is powered by the reader through RF induction technology. These cards require only proximity to an antenna to communicate. Like smart cards with contacts, contactless cards do not have an internal power source. Instead, they use an inductor to capture some of the incident radio- frequency interrogation signal, rectify it, and use it to power the card's electronics Smart cards are turning out to be a fundamental piece of the transformation of retailing into electronic commerce. The impressive growth of the Internet is making electronic shopping at least a real possibility, if not a habit, among computer users. However, the business model used in current electronic commerce applications still cannot enjoy the full potential of the electronic ‘medium, Moreover, concerns about the reliability of an invisible counterpart and about the safety of the Internet for ctedit card information increase the wariness and thereby limit the use of the electronic shopping on the part of customers challenges e-commerce companies face 1) An absence of online identity verification When a visitor goes to an e-commerce website and signs up, the portal is unaware of the customer, bar the information they entered. Whether the customer information is genuine or not remains questionable. Cash-On-Delivery (COD) purchases using an invalid or fake phone numbers or addresses can lead to huge revenue losses. So how can this be solved? By taking the proper steps to verify the customer’s information, First of all, look out for signs of suspicious activity. This could take the form of particularly high value or large orders, Identify fake phone numbers and email addresses, check whether zip codes match with the state/city, Send a verification link when a customer signs up, via text ‘message or email, to validate the customer is genuine, With COD purchases, an automated call could even dial out to the customer, asking them to validate the delivery address. 2) Delivering an omnichannel customer experience In today's world, customers can reach out through any number of touch-points. They may visit your website, contact your agent, leave a message on your social media page, shop from your Store of contact you through a live chat or a messaging platform. According to ecomdash, “Any business that isn’t moving toward an omnichannel retailing strategy will likely be left behind by its online savvy competitors.” So how can this be addressed? Make sure to equip your team with the right technology. - Up to date, visual engagement tools enable your organization to serve customers across all touchpoints, channels, and journeys. Identify the key channels, Find out which channels are most important to your customers. Customer support staff should contact customers via their preferred channels, phone, email, live chat, video call, online help centers or it-app messaging. Integrate and optimize those channels, adding personalized ‘messages and offering one-to-one interaction with live chat or video callingMaintain the context. Direct the conversations based on a user’s previous response. Keep a track of customer conversations using parameters like user profile. This way, you can always respond contextually, irrespective of the channels they used. 3) Competitor Analysis. Ina competitive environment, others will offer the same products and services as you. Unless you have a strategy to differentiates yourself, it is difficult to survive. So how can this be mitigated against? Conduct thorough research into competitors.Place emphasis on developing a strategy enabling you to shine brighter than your competitors. Use social media platforms and blogs for promoting products. Invest in promotional offers to help create more web presence and therefore more customers."‘Businesses with customer loyalty programs, on average, are 88% more profitable than those who do not."Carry out research, find which products are more in demand. Remove outdated items. Customer services that go above and beyond provide a route to staying ahead of your competitors 4) Stuck in at the old-school way of approach to selling The reason many e-commerce companies find online selling so difficult is that they are, ironically, stuck in the past. Most of them lack the necessary insight into customer behavior and buying pattems, data which can help them thrive in the current e-commerce environment. So how can this data be leveraged? Offer products in prominent marketplaces like Amazon, eBay, ete. These e-commerce sites already have an existing network of buyers so pitching and branding your product becomes relatively easy. Segment visitors. - Visitor segmentation allows e-commerce companies to identify and communicate with visitors based on their customer journey, past conversations, geographical location, browsing behavior, referral page, 5) Shopping cart abandonment Shopping cart abandonment is problem. huge issue. Even e-commerce giants are not immune to this, For instance, when brick and mortar heavyweight Nordstrom started an e-commerce portal, they witnessed big losses from abandoned carts. The tedious and bug-filled checkout process was causing customers to flee in their droves. Nordstrom had to come up with a new checkout design, turing it into a two-step procSo how can this be addressed? Consider redesigning your shopping cart, making sure there are no bugs or an unnecessarily ong and frustrating form filling process. live chat solutions reduce shopping cart abandonment instances. Combining this with features such as visitor segmentation, itis possible to proactively reach out to customers during key stages of their journey, providing the opportunity to engage with customers who would otherwise drop out without purchasing, Visual tools can help address customer queries during the checkout process. Maintaining customer loyalty Even with the best-designed website out there, without customer trust and loyalty, the business is bound to struggle. Creating new customers and then maintaining them requires a massive effort, One of the reasons e-commerce companies in particular face a challenge in building customer trust and loyalty is the seller and buyer don’t know each other. Nor can they see each other. Thus, the customer is, robbed of the senses they would normally rely on in face to face transactions. This can only be ‘made up for through time and effort, Across multiple transactions, eventually, the company can build this trust and loyalty. So how can this be addressed? You must make sure the customer is satisfied with the whole process, from ordering online to shipping, Plenty of online retailers may be selling the same product, so you must identify competitive advantage and nurture your customer service accordingly. Increase trust with visitors by: Displaying your address, phone number, pictures of staff, customer testimonials, and credibility badges on your website. Add a live chat option to the website Create blogs, they help build trust. Make customer service a priority over profit. Remember, it’s easier to maintain an existing customer than to find a new one. Create loyalty programs. The points can’t be transferred to other companies, so the customer will have to purchase from you 7) The headache of product return and refund A survey by comScore and UPS, showed 63% of American consumers check the return policy before making a purchase and 48% would shop more with retailers offering hassle-free returns, e-consumers are clearly conscious of return and refund policies. When a product is returned, whether duc to a dissatisfied customer or damaged product, the business suffers a heavy loss in shipment and reputation. Logistic and shipping costs have always been problematic to e-commerce sellers delivering their product for free. How can this be taken into account? Return and refund are also part of great customer service, It would be a big mistake to forget that. The best thing you can do is build a strong returns policy. Consider the following when designing it: Be trans arent, Never hide your poticyUse plain English, understandable to everyone. Not all your customers will be clued up with the terminology. Try avoiding phrases like, “you must” “and “you are required”, which may seem harsh and put off potential customers. Outline what they can expect from you. Provide different options for payments and shipping, Educate staff about your return policy, so they can assist customers effectively. Be prepared to face the cost of your mistakes. If the product is shipped wrong, take extra effort to keep the customer happ Credit Card Electronic Payment System Many credit card companies will also, when applying payments to a card, do so at the end of a billing cycle, and apply those payments to everything before cash advances. For this reason, many consumers have large cash balances, which have no grace period and incur interest at a rate that is (usually) higher than the purchase rate, and will earry those balances for years, even. if they pay off their statement balance each month, Credit Card payment-online networks We can break credit eard payment on on-line networks into three basic categories: Payments using plain credit card details. ‘The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Intemet makes this method problematic (any snooper can read a credit card number, and programs can be created to sean the Internet traffic for credit card numbers and send the numbers to its master). Authentication is also a significant problem, and the vendor is usually responsible to ensure that the person using the eredit card is its owner. Without encryption there is no way to do this. Payments using encrypted credit card details. It would make sense to encrypt your credit card details before sending them out, but even then there are certain factors to consider. One would be the cost of a credit card transaction itself. Such cost would prohibit low-value payments (micro payments) by adding costs to the transactions Payments using third-party verification. One solution to security and verification problems is the introduction of a third party: a company that collects and approves payments from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Encryption is instantiated when credit card information is entered into a browser or other electronic commerce device and sent securely over the net-work from buyer to seller as an encrypted message. This practice, however, does not meet important requirements for an adequate financial system, such as non refutability, speed, safety, privacy, and security. To make a credit card transaction truly secure and non-refutable, the following sequence of steps must occur before actual goods, services, or funds flow: + A.customer presents his or her credit card information (along with an authenticity signature or other information such as mother’s maiden name) securely to the ‘merchant.The merchant validates the customer's identity as the owner of the cred-it card account.+ The merchant relays the line credit card processors, sdit card charge information and signature to its bank or on- + The bank or processing party relays the information tot the customer's; bank for authorization approval. + Managing Information ivacy + The electronic payment system must ensure and maintain privacy. Every time one purchases goods using a credit card, subscribes to a magazine or accesses a server, that information goes into, a database somewhere, Furthermore, all these records can be linked so that they constitute in effect a single dossier. This dossier would reflect what items were bought and where and when. This violates one the unspoken laws of doing ‘business: that the privacy of customers should be protected as much as possible. All details of a consumer's payments can be easily be aggregated: Where, when, and, sometimes what the consumer buys is stored. * This collection of data tells much about the person and as such can conflict with the individual’s right to privacy. Users must be assured that knowledge of transactions will bbe confidential *+ Limited only to the parties involved and their designated agents (if any), Privacy must be ‘maintained against eavesdroppers on the network and against unauthorized insiders. The users must be assured that they cannot be easily duped, swindled, or falsely implicated in a fraudulent transaction. This protection must apply throughout the whole transaction protocol by which a good or service is purchased and delivered. This implies that, for ‘many types of transactions, trusted third-party agents will be needed to vouch for the authenticity and good faith of the involved partes. Managing Credit Risk + Credit or systemic risk is a major concem in net settlement systems because a bank's failure to settle its net position could lead to a chain reaction of bank failures. The digital central bank must develop policies to deal with this possibility. Various alternatives exist, each with advantages and disadvantages. A digital central bank guarantee on settlement removes the insolvency test from the system because banks will more readily assume credit risks from other banks. Without such guarantees the development of clearing and settlement systems and money markets-may be impeded.‘A middle road is also possible, for example, setting controls on bank exposures (bilateral or multilateral) and requiring collateral. Ifthe central bank does not guarantee settlement, it must define, at least internally, the conditions and terms for extending liquidity to banks in connection with settlement. Despite cost and efficiency gains, many hurdles remain to the spread of electronic payment systems. Electronic check + Electronic Cheques are designed to accommodate the many individuals and entities that ‘might prefer to pay on credit or through some mechanism other than cash. + Ine-Cheque system, consumer posses an e-Cheque book on a Personal computer ‘memory card Intemational Associations (PCMCIA Card). The buyers must register with a third party account server before they are able to write e-Cheque. As needed, Cheque are return electronically from an e-Cheque book on the card. They are then send over the internet to the retailer, who in tum sends the e~Cheque to the customer banks. Settlement is made through a financial network such as ACH. E-Cheque method was deliberately created to work in much the same way as a conventional paper Cheque. ADVANTAGES OF CHEQUE, 1. They work in the same way as traditional Cheque, thus simplifying customer education. 2, E-Cheque is well suited for clearing micro payments; their use of conventional cryptography ‘makes it much faster than e-cash. 3, E-Cheque creates float and the availability of float is an important requirement for commerce. 4, Financial risk is assume by the accounting server and may result in easier acceptance. Reliability and scalability are providing by using multiple accounting servers SMART CARDS APPLICATIONS OF SMART CARDS 1. Financial + Smart cards serve as credit or ATM cards, fuel cards, mobile phone SIMs, authorization cards for pay television, household utility pre-payment cards, high-security identification and access-control cards, and public transport and public phone payment cards. + Smart cards may also be used as electronic wallets. The smart card chip can be “loaded” with fimds to pay parking meters, vending machines or merchants. Cryptographic protocols protect the exchange of money between the smart card and the machine, No connection to a bank is needed. The holder of the card may use it even if not the owner. 2, Identification + Smart-cards authenticate identity by storing an encrypted digital certificate issued from the PKI (public key infrastructure) provider along with other relevant information. + Examples include the U.S, Department of Defense (DoD) Common Access Card (CAC), and other cards used by other governments for their citizens. + If they include biometric identification data, cards can provide superior two- or three- factor authentication, 3. Public transit + Smart cards and integrated ticketing are used by many public transit operators.+ Card users may also make small purchases using the cards. Some operators offer points for usage, exchanged at retailers or for other benefits. Computer security + Smart cards are used as a security token. The Mozilla Firefox web browser can use smart cards to store certificates for use in secure web browsing. + Some disk encryption systems, such as Microsoft’s BitLocker, can use smart cards to securely hold encryption keys, and also to add another layer of encryption to critical parts of the secured disk + Smart cards are also used for single sign-on to log on to computers. Electronic commerce + Smart cards are used in electronic commerce for customized services. + Example, in order for the service supplier to deliver the customized service, the user ‘may need to provide each supplier with their profile, a boring and time-consuming, activity. A smart card can contain a non-enerypted profile of the bearer, so that the user can get customizeservices even without previous contacts with the supplier. ADVANTAGES OF SMART CARDS L.FLEXIBILITY ‘©. Smart cards have multiple functions which simultaneously can be an ID, a credit card, a stored-value cash card, and a repository of personal information such as telephone numbers or ‘medical history. (©. The card can be easily replaced if lost, and, the requirement for a PIN (or other form of security) provides additional security from unauthorized access to information by others. © At the first attempt to use it illegally, the card would be deactivated by the card reader itself. ©. Information on a smart card cannot be erased or removed accidentally by any electrical or ‘magnetic means, 3. PORTABILITY (© Smart cards have the ability of software to be transferred from one machine or system to another. 4.SECURITY ©. Smart cards can be electronic key rings, giving the bearer ability to access information and physical places without need for online connections. ©. They are encryption devices, so that the user can encrypt and decrypt information without relying on unknown, and therefore potentially untrustworthy, appliances such as ATMs. (© Smart cards are very flexible in providing authentication at different level of the bearer and the counterpart, (©. With the information about the user that smart cards can provide to the other parties, they are useful devices for customizing products and services.DISADVANTAG! ES OF SMART CARDS. EASILY LOST Smart cards are small, lightweight and can be easily lost if the person is irresponsible as they have multiple uses and so the loss may be much more inconvenient. SLOW ADOPTION If used as a payment card, not every store may have the hardware necessary to use these cards as it is more expensive to produce and use. Therefore, some stores may charge a basic minimum fee for using smart cards for payment, rather than cash, POSSIBLE RISK OF IDENTIFY THEFT When used correctly for identification purposes, they make the jobs of law enforcement and healthcare professionals easier. However, for criminals seeking a new identity, they are like gold, based on the amount of information it can contain on an individual, RISK OF E PAYMENTS From Customer's Perspective: + Stolen Payment credentials and passwords. + Dishonest merchants for financial service providers, + Disputes over quality of services and products. Fraud Electronic payment systems are prone to fraud. The payment is done usually after keying in a password and sometimes answering security questions. There is no way of verifying the true identity of the maker of the transaction. As long as the password and security questions are correct, the system assumes the right person. If this information falls into the possession of fraudsters, then they can defraud the money Impulse Buying Electronic payment systems encourage impulse buying, especially online and customers are likely to make a decision to purchase an item they find on sale online,because it will cost just a click to buy it through credit card, Impulse buying leads to disorganized budgets and is one of the disadvantages of electronic payment systems, From Merchant's Perspective: + Forget payment + Insufficient funds in customers account, + Slow Financial service providers. BASIC REQUIREMENTS Designing an electronic payment system should have the requirements assessed: Technological Requirements Economic Requirements ~ Authentication The cost of Transaction = Integrity Atomic exchange= Confidentiality -Non Repudiation User Range (System accessibility) ‘Value Mobility (value is used anywhere) Financial Risk Return On Investment (ROI)UNIT -3 PERFORMANCE OF TRANSMISSION LINES‘Course Outcomes Mapped To Unit- III: Students will be able to: co ‘Course Outcomes Blooms taxonomy COS | List out the key features of intemet, intranets explain the use_network systems in e-commerce busines ind extranets to ‘Analyze coe Analyze the impact of E-commerce on business models to ‘Analyze implement best strategies Program Outcomes And Program Specific Outcomes Mapped To Unit- III: Program Outcomes PO _ | Engineering knowledge: Apply the knowledge of mathematics, science, engineering fundamentals, and a engineering specialization to the solution of complex engineering problems. PO2 | Problem analysis: Identify, formulate, review research Iteratureand analyze complex engineering problems reaching substantiated conclusions using first, principles of mathematics, natural sciences, and engineering sciences, PO3 | Designidevelopment of solutions: Design solutions for complex engineering problems and design system components or processes that meet the specified needs with appropriate consideration for the public health and safety, and the cultural, societal, and environmental considerations. PSO2 [Focus on mobile and web applications development and learn the emerging technologies and frameworks in demand with employers and contemporary challenges. Mapping Of CO(s) With PO(s) , PSO(s) For Unit-II: Program Specific Course Program Outcomes (POs) Co Sa (03) ' 2 fF [4B b FE > [wlufel 3 cos v7 Fr iu rT coe iv irINTER AND INTRA ORGANIZATIONAL COMMERCE ‘What is EDI? Electronic Data Interchange (EDI) is the automated, computer-to-computer exchange of standard electronic business documents between business partners over a secure, standardized connection. Let's break down this EDI definition, piece by piece, to give you a full sense of what EDI is and ‘means Computer-to-Computer EDI replaces manual B2B communications, such as postal mail, fax and email Documents flow directly from the sender's computer application (e.g. a logistics system) to the receiver's computer application (e.g., an order management system), ‘Traditional Manual Process Automated EDI Process Business Documents + 1000s of standard business transaction documents can be sent automatically using EDI. + Some common examples include: purchase orders, invoices, shipping statuses, customs information, inventory documents and payment confirmations. Standard EDI Format EDI documents are processed by computers and use standard, computer-friendly formats. Standards describe each piece of data and its format (c.g., type of document, parties involved, actions to take, mmddyy).Standards eliminate company-to-company variations, allowing each business partner's computer system to speak a common language. There are a variety of EDI standards for various industries, regions and use cases - each with different versions, so EDI partners must use the same standard and version Popular standards include: ANSI X12 in the U.S., UN/EDIFACT globally and industry-specific standards, such as HIPAA Business Partners + The exchange of EDI documents is typically between two different organizations, referred to as business partners or trading partners. + Example: Company A may buy goods from Company B. Company A sends Purchase Orders to Company B, which sends Invoices and Shipment Notices to Company A. Secure, Standardized Connection + EDI uses a range of secure protocols to facilitate the secure exchange of EDI documents. + Partners must use the same, agreed-upon protocol to exchange EDI files or work with an intermediary who can facilitate exchanges if the partners use different protocols. + Some protocols require more EDI technology infrastructure than others, but EDI software, such as ArcESB, now facilitates exchanges with minimal investment. + The protocols range from long-established technologies, such as FTP, to web-based EDI via AS2, API-based systems, such as AS4, and other options, such as mobile EDI. Automation + EDI messages can be sent automatically using pre-configured workflows. * Businesses typically use EDI translators - either as software or via an EDI service provider - to translate EDI documents for use in internal applications, enabling automated processing, + processes can be extended to work with data integration and workflows within an organization, + Example: once a company receives an EDI Purchase Order, the logistics system ‘generates a task for warehouse staff to move goods from inventory to shipping. EDI vs. Traditional Paper or Email Communications + To illustrate the meaning of EDI, or electronic data interchange, let's compare how a typical purchasing transaction would go between two trading partners using traditional paper or email communications vs. using EDI + Traditional methods: + The buyer either receives a notification in his system to place an order, ot, after querying the inventory, determines he needs to place an order. + The buyer enters data onto the screen of a purchasing system to create the PO, prints and. tails it or emails it to the vendor. + The vendor receives the PO, either days later or via email (along with a long list of other communications) and manually enters it into the sales order system,+ The vendor prints an invoice and encloses it with the shipment and/or sends it separately by mail or email + The buyer manually enters the invoice into the accounts payable system. In this example, a paper system can add a week of back-and-forth shipping time to the process. Both email and paper are susceptible to manual data entry errors, lengthening order time EDI process: + The buyer's procurement system, which uses EDI, auto-generates and sends an EDI- formatted PO when inventory reaches a pre-specified level. + In minutes the vendor's sales order system, using EDI software, receives the EDI PO. + The supplier's system automatically notifies their shipping department to send goods. Once the goods are packed and ready to ship, the shipping system generates an Advanced Ship Notices (ASN) to send to the buyer's receiving department ‘The vendor's ERP system then generates an EDI invoice to transmit to the buyer's accounts payable system EDI Use Cases: Who Can Use EDI? + No definition of EDI is complete without real-world applicability. Electronic Data Interchange is useful for a wide variety of functions spanning many thousands of specific information exchanges. Here are just some of the most common scenarios where EDI is helpful, from among the many thousands of transaction types EDI handles every day. Supply Chain (Retail, Manufacturing, Automotive) + Purchasing + Order fulfillment + Shipping confirmations + International orders, + Parts order fulfillments Healtheare + Exchanging patient health information + Health insurance processing *+ Prescription information exchanges Logistics + Scheduling shipments + Tracking goods Accounting + Generating invoices + Providing audit trailsAviation + Flight information exchanges + Passenger name records (PNR) + International compliance and standardization Benefits of EDI EDI helps businesses improve supply chain speed, accuracy, efficiency and costs, and some of the greatest EDI benefits come at the strategic business level. Here, we cover what EDI means, practically, for business. Faster Processing + EDI can speed up business eycles by 61 percent EDI enables transactions in minutes instead of days or weeks spent on postal mail or back-and-forth email communications + Automating paper-based tasks frees up your staff for higher-value tasks and provides them the tools to be more productive * Quick processing of accurate business documents leads to fewer re-worked orders, stock outs and cancellations Automating application data exchange across a supply chain ensures critical data is sent on time and tracked in real time + Shortening order processing and delivery helps organizations reduce inventory Lower Costs + EDI reduces the transaction costs of paper, printing, reproduction, storage, filing, postage and document retrieval, saving businesses more than 35 percent on transaction costs + For buyers that handle numerous transactions, using EDI can also result in millions of dollars of annual savings due to early payment discounts, + In some cases, EDI is just 1/20th the cost of manual order processing, slashing costs by a factor of 20 + EDL also eliminates costly errors due to illegible faxes, lost orders o incorrectly taken phone orders More Accuracy, Fewer Errors + EDI reduces error transactions by 30-40 percent + EDI eliminates human errors from illegible handwriting, lost mail and keying errors Better Relationships + Sellers benefit from improved cash flow and reduced order-to-cash eycles + In fact, EDI can reduce the order-to-cash eyele time by more than 20%, improving business partner transactions and relationships + Reducing errors also saves partners valuable time and frustration handling data disputesStrategic Benefits + EDI provides real-time visibility into transaction status, enabling faster decision-making and better responsiveness to customer and market demands, helping businesses adopt a demand-driven approach + Product enhancements and delivery enjoy shorter lead times + Streamlines the process of entering new territories, as EDI provides a common worldwide business language Environmental Benefits + EDI promotes sustainability and reduces CO2 emissions by replacing paper-based swith electronic alternatives proces: + EDI increases operational efficiencies, leading to fewer errors and less energy waste How EDI Works + There are three steps in the process of sending EDI documents: prepare the documents, translate them into an EDI format and transmit them to a partner. + One common process automated with EDI is the exchange of purchase orders (POs) and. invoices. To give you a good example of how EDI works, we'll illustrate the EDI process for POs and invoices. + There are three steps in the process of sending EDI documents: prepare the documents, translate them into an EDI format and transmit them to a partner. + One common process automated with EDI is the exchange of purchase orders (POs) and invoices. To give you a good example of how EDI works, we'll illustrate the EDI process for POs and invoices. Document Preparation + Following the example of a PO and invoice, this is where a buyer prepares an order in a purchasing system, + The buyer collects and organizes the data so it will work with EDI + For example, instead of printing a PO, the system creates an electronic file with the necessary information to build an EDI document + So how would you properly prepare documents? There are several approaches, including: + Exporting computer-based data from spreadsheets or databases + Reformatted electronic reports into data files + Enhancing apps to create output files ready for EDI standard translation + Purchasing EDI software that ean turn documents from your systems into EDI files + Human data entry + Ideally, you would want your system to eliminate as much human data entry as possible to save time and improve accuracy.EDI Document Translation The next step is to feed your document through EDI translation software to convert your internal data format into the EDI standard format using the appropriate segments and data elements. Alternatively, you can send your data to an EDI service provider, who handles translation to and from the EDI format on your behalF, In our example, the PO is translated into an EDI 850 purchase order document. Connect & Transmit EDI Documents ‘Once the PO is translated to the EDI 850 purchase order format, it's ready for transmission to the supplier. There are several ways to connect to a partner via EDI. The ‘most common of include: Direct, point-to-point EDI connection via a secure Internet protocol, such as AS2 Connect to an EDI network provider, also referred to as a Value Added Network (VAN) provider A combination of both Direct EDI and VAN, depending on the partners involved and the transaction volume Intra organizational commerce Internal commerce is the application of electronic commerce to processes or operations. Specifically, we define internal commerce as using methods and pertinent technologies for supporting internal business processes between individuals, departments, and collaborating organizations. tis of two types Private commerce Publ commerce ‘These forces are commanding a rethinking of the importance of the networks-computers and communications and their role in the better utilization of corporate information in ‘operational and analytical decision making.Information architecture (IA) is the art of expressing a model or concept of information used in activities that require explicit details of complex systems. Among these activities are library systems, content Management Systems, web development, user interactions, data base development, programming, technical writing, enterprise architecture, and critical system software design. ‘Most definitions have common qualities: a structural design of shared environments, methods of organizing and labeling websites, intranets, and online communities, and ‘ways of bringing the principles of design and architecture to the digital landscape What Is Cross-functional Management? Cross-funetional management (CFM) manages business processes across the traditional boundaries of the functional areas, CFM relates to coordinating and sneering the activities of different units for realizing the super ordinate cross-functional goals and policy deployment. It is concerned with building a better system for achieving for achieving such cross-functional goals as innovation, quality, cost, and delivery. Macro Forces and Internal Commerce Macro forces and internal commerce highlights the changes taking place in organization structure and explores how technology and other economic forces are molding arrangements within firms. ‘The common focus in most of these modern management particles is the use of technology for improving efficiency and eliminating wasteful tasks in business operations. Efficient operations of the macro forces and internal commerce are: + Total quality management + Business process improvement or business process reengineering, + The words improvement and reengineering are often used interchangeably, creating confusion. + Although the goal of these two is same i.e., productivity gains, cos service improvements, cycle-time reduction savings, quality and + One main reason for reengineering is to better complete in global markets.Global Markets: Definition and Characteristies Definition: ‘The Oxford University Press defines global marketing as “marketing” on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.” + Characteristics Global marketing: When a company becomes a global marketer, it views the world as one market and creates products that will only require weeks to fit into any regional marketplace Marketing decisions are made by consulting with marketers in all the countries that will be affected. The goal is to sell the same thing the same way everywhere. The Four elements of global marketing of marketing + Product: A global company is one that can create a single product and only have to tweak elements for different markets. + Price: Price will always vary from market to market. Price is affected by many variables: cost of product development (produced locally or imported), cost of ingredients, cost of delivery (transportation, tariffs, ete.), and much more + Placement: How the product is distributed is also a country-by-country decision influenced by how the competition is being offered to the target market, Using Coca-Cola as an example again, not all cultures use vending machines + Promotion: After product research, development and creation, promotion is generally the largest line item in a global company’s marketing budget. At this stage of a company’s development, integrated marketing is the goal. + The global corporation seeks to reduce costs, minimize redundancies in personnel and work, maximize speed of implementation, and to speak with one voice. Global marketing Advantages and Disadvantages ‘Advantages: + Economies of scale in production and distribution Power and scope * Consistency in brand image + Ability to leverage good ideas quickly and efficiently * Uniformity of marketing practices + Helps to establish relationships outside of the "political arena" Disadvantages: * Differences in consumer needs, wants, and usage pattems for products + Differences in consumer response to marketing mix elements. * Differences in brand and product development and the competitive environment. + Differences in administrative procedures and Differences in product placement.Marketing Research: It involves the identification, collection, analysis, and dissemination of information. Each phase of this process is important. Finally, the findings, implications and recommendations are provided in a format that allows the information to be used for ‘management decision making and to be acted upon directly. It should be emphasized that marketing research is conducted to assist management in decision making and is not: a ‘means or an end in itself. ‘Marketing Research Characteristics: + First, marketing research is systematic, Thus, systematic planning is required at all the stages of the marketing research process. + The procedures followed at each stage are methodologically sound, well documented, and, as much as possible, planned in advance. + Marketing research uses the seienti test prior notions or hypotheses. method in that data are collected and analyzed to + Marketing research is objective. It attempts to provide accurate information that reflects a true state of affairs. It should be conducted impartially + An organizational structure is a mostly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim, tional structures are: Common success criteria for orgat + Decentralized reporting + Flat hierarchy + High transient speed + Tigh transparency Vertical Organization: Hierarchically structured organization where all management activities are controlled by a centralized management staff. Vertical organization has two problems: + First, it creates boundaries that discourage employees in different departments from interacting with one another. + Second, departmental goals are typically set in a way that could cause friction among departments A vertical market is a group of similar businesses and customers which engage in trade based on specific and specialized needs. An example of this sort of market is the market for point-of-sale terminals, which are often designed specifically for similar customers and are not available for purchase to the general public. ‘A vertical market is a market which meets the needs of a particular industry: for example, a piece of equipment used only by semiconductor manufacturers. It is also known as a niche market.‘Work Flow Automation and Coordination In last decade, a vision of speeding up or automating routine business tasks has come to be known as “work-flow automation. This vision has its root in the invention of the assembly line and the application of Taylor's scientific management principles. Today, a similar trend is emerging in the automation of knowledge-based business processes called work-flow automation. The goal of work- flow automation is to offer more timely, cost-effective, and integrated ways to make decisions. ‘Typically, work-flows are decomposed into steps or tasks, which are task oriented. Work-flows can bbe simple or complex. Simple work-flows typically involve one or two steps or tasks, Another way of looking at work-flow is to determine the amount of cross-functional activity. In other words, ‘companies must adopt an integrated process view of all the business elements, Work-Flow Coordination ‘The key element of market-driven business is the coordination of tasks and other resources throughout the company to create value for customer. To this end, effective companies have developed horizontal structures around small multifunctional teams that can move more quickly and easily than businesses that use the traditional function-by-function, sequential approach. Some of the simplest work-flow coordination tools are electronic forms routing applications such as lotus notes. As the number of parties in the work flow increases, good coordination becomes crucial. Work-flow related technologies ‘Technology must be the “engine” for driving the initiatives to streamline and transform business interactions. Large organizations are realizing that they have a middle-management offer all the drawn sizing and reorganization of fast few years, Pressures for more comprehensive work-flow systems are building rapidly. Work-flow system are limited to factory like work prot Middleware is maturing: By these users or third-party providers need to learn how to develop work-flow applications within middleware environment. Organizational memory is becoming practical: ‘The new tools for memory advancing towards, what can be called the “corporate digital library”, Customization and Internal Commerce ‘Technology is transforming consumer choices, which in tum transform the dynamics of the ‘marketplace and organizations themselves. Technology embodies adaptability, programmability, flexibility, and other qualities so essential for customization, Customization is explained as Geer ae Ce Mass customization, in marketing, manufacturing, and management, is the use of flexible computer-aided manufacturing systems to produce custom output, "Mass Customization" is the new frontier in business competition for both manufacturing and service industries. Those systems combine the low unit costs of mass production processes with the flexibility of individual customizationImplementation: Many implementations of mass customization are operational today, such as software-based product configurations which make it possible to add and/or change functionalities of a core. product or to build fully custom enclosures from scratch. Companies which have succeeded with mass-customization business models tend to supply purely electronic products. However, these are not true "mass customizers" in the original sense, since they do not offer an alternative to mass production of material goods. Four types of mass customization: Collaborative customization - Firms talk to individual customers to determine the precise product offering that best serves the customer's needs. Adaptive customization - Firms produce a standardized product, but this product is customizable in the hands of the end-user. ‘Transparent customization - Firms provide individual customers with unique products, without explicitly telling them that the products are customized, Cosmetic customization Firms produce a standardized physical product, but market it to different customers in unique ways. Most of the written materials and thinking about customization has neglected technology. Ithas been about management and design of work processes Today technology is so pervasive that it is virtually impossible to make clear distributions among management, design of work, and technology in almost all forms of business and industry. Technology has moved into products, the workplace, and the market with astonishing speed and thoroughness. Today, the walls that separated functions in manufacturing and service industries alike are beginning to fall like dominoes. Customization need not be used only in the production of cars, planes, and other traditional products. It can also be used for textiles and clothing. Technology is also enabling new forms of customized production in apparel industry Digital Library Layer Many organizations manage their information through corporate library, if it provide the architecture to model, map, integrate & information in digital documents is called digital library. It provides information structures by this organizations &workers access vast amount of data encoded in multimedia formats. Digital libraries are of two types: 1, Electronic document-based digital libraries. 2, Data-base oriented warehouses Document digital library: The term document is used to denote all non data records Le. books, reports, e-files, videos and audios. Digital library is simply a distributed network of interlinked information. Data warehouses: It is a central repository for combining and storing vast amount of data from Giff sources, Sources are main frame database, lint-server database, text reports....cte MAKING A BUSINESS CASE FOR DOCUMENT LIBRARY ‘This section highlights the role that documents play in today’s organization and how business can better meet their customers” needs by improving document management support.Digital Document Management Issues and Concems Ad hoc documents: Letters, finance reports, manuals are called ad hoc documents, which are prepared by managers &professionals. Process-specific documents: invoices and purchase orders which are created, constructed and distributed by support personnel. these are form based. Knowledge-oriented documents: these are technical documents, catalogs of product information, and design documents. Types of Digital Documents Four types of digital documents are: Structuring applications around a document interface Structuring interlinked textual & multimedia Documents. Structuring and encoding information using document-encoding standards Scanning documents for storage and faxing. ‘Types of Digital Documents Four types of digital documents are: + Structuring applications around a document interface + Structuring interlinked textual & multimedia Documents. + Structuring and encoding information using document-encoding standards + Scanning documents for storage and faxing, Document Imaging + Document imaging emulates microfiche and microfilm, + An imaging system passes appear document through a scanner that renders it digital and then stores the digital data as a bit-mapped image of document. + The problem with the imaging approach is that the output contains only images not text. + The following imaging standards are prominently used: ‘TIFF (tag image file format): format for interchange of bit-mapped images. + ITU-TSS (international telecommunication union-telecommunication standardization sector) Group IV T.6 facsimile: this standard is used for compression and exchange of bit-mapped files. Corporate Data Warehouse Data warchouse is used store information of the organization. Data warehouse is needed as enterprise wide to increase data in volume and complexity. Character of data warehouse are: ‘An information-based approach to decision making, Involvement in highly competitive & rapidly changing markets. Data stored in many systems and represented differently.Functions performed by data warehouse are: Allow existing transactions and legacy systems to continue in operation, Consolidates data from various transaction systems into a coherent set. Allows analysis of virtual information about current operations of decision support. Types of data warehouses There are four types of data warchouses: Physical data warehouse: It gathers corporate data along with the schemas and the processing logics. Logical data warehouse: It contains all the Meta data and business rules, Data library: This is sub set of the enterprise wide data warehouse, Decision support system (DSS): These are the applications but make use of data warehouse Functions performed by data warehouse are: Allow existing transactions and legacy systems to continue in operation, Consolidates data from various transaction systems into a coherent set. Allows analysis of virtual information about current operations of decision support. + Managing data To manage data fallowing steps are needed: Translation + Summarizing + Packaging + Distributing + Garbage collection Advantages of data warehouse: ‘Timely and accurate information become an integral part of the decision-making process. User can manage and access large volumes of in one cohesive framework. Data warehousing has wide spread applicability It provides point-of-sales reports instead of end-of —day reports. + The new age of information-based marketing, + Advertising on the intemet. + Marketing research. ‘The New Age of Information-Based Marketing The new age of information-based marketing differentiate interactive marketing into four areas: Retailers vs manufacturers ‘Target and micromarketing, on-line marketing process ‘Two different advertising paradigms are emerging in the on-line world, they are: 1. Active or push-based advertising 2. Passive or pull-based advertising Active or push-based advertising:Active or push-based advertising is of two types they are : The broadcast model + Broadcasting message provides a means for reaching a great number of people in short period of time. + Itmimics the traditional model, in which customer id exposed to the advertisement during TV programming, + It basically uses direct mail, spot television, cable television. Text-based broadcast ‘messages also used in advertising in Usenet news groups. The junk mail model: + Disadvantage of the direct mail include relatively high cost per contact + Junk mail is the just poorly targeted direct mail + It is most intrusive of all forms of internet advertising, because it is easily implemented using electronic mail Junk mail creates unwanted expens well as an annoyan Passive or pull-based advertising Pull-based advertising provide a feedback loop, company and customers. On-line pull-based advertising, includes the following: Billboards Catalogs or yellow pages directories: endorsements Based on the above three we have the fallowing models: The billboards or www model: Billboard advertising is often used to remind the customer of the advertising messages communicated through other media. ‘The advantage of this model is no customer charges. In this message must be simple, direct. Marketing Research Market research is extremely important for companies in terms of how they allocate their advertising dollars in sales promotions, how they introduce new products, how they target new markets. Broadly marketing research is divided into three faces: Data collectionUNIT -4 CONSUMER SEARCH AND RESOURCE DISCOVERY‘Course Outcomes Mapped To Unit- IV : Students will be able to: co Course Outcomes Blooms taxonomy COT | Understand E-commerce and web based applications to built and Understand develop e-commerce designs COS | Make use of the major E-commerce revenue models to evaluate ‘Apply existing websites Program Outcomes And Program Specific Outcomes Mapped To Unit- IV: POT Program Outcomes Engineering knowledge: Apply the knowledge ofmathematics, science, engineering fundamentals, and PO2 Problem analysis: Mdentify, formulate, review research literature.and anayzecomplex engineering problems reaching substantiated conclusions usingfirst principles of mathematics, natural sens and engineeringscinass PO3 Design/development of solutions: Dsgnsolutions for complex engineering problems and design system components or jrocssesthat meet the specified nas ‘with appropriate consideration for the public health andsaféy, andthe cultural, societal and environmental considerations. PSO1 ‘Analyze Design investigate, simulate andor fabricate/commission the electical sstaminvolving generation, transmission, distribution andutilzation of electricalenenyy Mapping Of CO(s) With PO(s) , PSO(s) For Unit-IV Coane Program Outcomes (POS) Ferre Sete coo" ya, 2h 3 co7 r Fr cos Fr FrSEARCH AND RESOURCE DISCOVERY PARADIGMS, Information search and retrieval: + Search and retrieval begins when a user provides a description of the information being to an automated discovery system * Using the knowledge of the environment, the system attempts to locate the information that ription. * An information retrieval method depends on the libraries. + The challenge is to develop user in domains such as electronic shopping, + Search and retrieval methods that refine queries through various computing techniques such as nearest neighbors, them variants of original query sctronic catalogs and directories: * Information organizing and browsing is accomplished using directories or catalogs" + Organizing refers to how to interrelate information, by placing it in some hierarchy. + Maintaining large amount of data is difficult. Information filtering: Goal of information filtering if selecting of data that is relevant, manageable and understandable. Filters are of two types 1. Local filter 2. Remote filter Local filters: local filters work on incoming data to a PC, such as news feeds. Remote filters: remote filters are often software agents that work on behalf of the user 3. Local filters: local filters work on incoming data to a PC, such as news feeds. Remote filters: remote filters are often software agents that work on behalf of the user and roam around the network from one data base to another. INFORMATION SEARCH AND RETRIEVAL + Information search is sifting through large volumes of information to find some target information. + Search & retrieval system are designed for unstructured & semi structural data. ‘The process of searching can be divided into two types: The end-user retrieval phases: consists of three steps + First is, the user formulates a text based query to search data, + Second is, the server interprets users query, performs the search and returns the user a list of documents. Third is, the user selects documents from the hit list and browses them, reading and pethaps printing selected portions of retrieved data. ‘The publisher indexing phase: + Itconsists of entering documents in to the system and creating indexes and pointers to facilitate subsequent searches. + The process of loading a document and updating indexes is normally not a concern to the user, ‘These two phases are highly interdependent + WAIS (Wide Area Information Service): + Itenables users to search the content of the files for any string of text that they supply. WAIS has three elements: + Client + Sever + Indexer + Ituses an English language query front end a large assortment of data bases that contains text based documents. + Itallows users search the full text of all the documents on the server.+ Users on diff platforms ean access personal, company, and published information from one interface Le. text, picture, voice, or formatted document. Search Engines: + WAIS is a sophisticated search engine. + The purpose of the search engine in any indexing system is simple + To find every item that matches a query, no matter where it is located in the file system. + Search engines are now being designed to go beyond simple, broadband Searches for which WIAS is so popular. + Ituses both keywords and information searching to rank the relevance of each document. * Other approaches to data searching on the web or on other wide area networks are available Indexing methods: + To accomplish accuracy and conserve disk space, two types of indexing methods are used by search engines. + They are: + 1. File-level indexing + 2. Word-level indexing + File-level indexing: It associates each indexed word with a list of all files in which that word appear at least once. + Itdoes not carry any information about the location of words within the file. + Word-level indexing: It is more sophisticated and stores the location of each instance of the word. The disadvantage of the word-level indexing is that all the extra information they contain gobbles up a lot of disk space, it is 35-100 percent of the original data. ELECTRONIC COMMERCE CATALOGS OR DIRECTORIES A directory performs an essential support function that guides customers in a maze of options by enabling the organizations of the information space. Directories are of two types: 1. The white pages 2. Yellow pages ‘The white pages are used to people or institutions and yellow pages are used to consumers and organizations Electronic white pages: + Analogues to the telephone white pages, the electronic white pages provide services from a static listing of e-mail addresses to directory assistance + White pages directories, also found within organizations, are integral to work efficiency. + The problems facing organizations are similar to the problems facing individuals. + A white pages schema is a data model, specifically a logical schema, for organizing the data contained in entries in a directory service, database, or application, such as an address book. + A white pages schema typically defines, for each real-world object being represented: What attributes of that object are to be represented in the entry for that object. Electronic Yellow Pages: + The term Yellow Pages refers to a telephone directory of businesses, categorized Root Countries Organizations Individuals according to the product or service provided. + The traditional term Yellow Pages is now also applied to online directories of businesses. + To avoid the increasing cost of yellow paper, the yellow background of the pages is currently printed on white paper using ink. Yellow paper is no longer used. + The name and concept of "Yellow Pages” came about in 1883, when a printer in Cheyenne, Wyoming working on a regular telephone directory ran out of white paper and used yellow paper instead,tn 1886 Reuben H.Donnelley created the first official yellow pages directory, inventing an industry. Today, the expression a proper nounInformation Filtering * An Information filtering system is a system that removes redundant or unwanted information from an information stream using (semiautomated or computerized methods prior to presentation to a human user. + Its main goal is the management of the information overload and increment of the semantic signal-to-noise ratio. To do this the user's profile is compared to some reference characteristics. ‘A notable application can be found in the field of email spam filters. Thus, it is not only the information explosion that necessitates some form of filters, but also inadvertently or maliciously introduced pseudo- information. On the presentation level, information filtering takes the form of user-preferences-based newsfeeds, etc. Recommender systems are active information filtering systems that attempt to present to the user information items (movies, music, books, news, webpage) the user is interested in.UNIT -5 MULTIMEDIA,‘Course Outcomes Mapped To Unit: V : Students will be able to: co Course Outcomes Blooms taxonomy CO9 | Explain digital library and supply chain management concepts to Understand develop best management practic ‘O10 | Explain theoretical and practical issues of conducting business over | Understand) ‘the intemet and the Web to understand the multimedia effects on e- commerce Program Outcomes And Program Specific Outcomes Mapped To Unit- V: Program Outcomes POI | Engineering knowledge: Apply the knowledge ofmathematics, science, engineering fundamentals, and PO2 | Problem analysis: Identify formulate, review reach literature, andanalyascomplex enginoxring problems raching substantiated conchsions using first principles of malheratcs, natural sco and enginocringscinas, POS | Design/development of solutions: Daigisolutions for complex engineering problems and design ysemcomponents or pronssesthat meet the specified nas with appropriate consideration for the public health andsafy,andthe cultural, societal nd xvironmental considerations. PSOT | Anaya: Desig investigate, simulate and/or fabricate/commission the eletical sysem involving gnezation, ransmission, distribution andutilzation of clectrcalenayy Mapping Of CO(s) With PO(s) , PSO(s) For Unit-V 5 Program Specie Sous Program Outcomes (POs) Outcomes (PS08) (con 2 +E EE > [w)ujah 3 cos y 7 = cow N ErMultimedia Definition ‘The term multimedia usually implies that at least one of text ( structured/unstructured, hypertext, etc), graphics (drawings), or image (discrete media) is associated with either audio ‘or motion video information (continuous media). Multimedia streaming > Multimedia streaming is the overlapping the play out of the data at the receiver with the transmission by the sender. “A video stream consists of a sequence of images or frames. + A frame cons ts of a grid of pixels. ‘An audio stream consists of a sequence of audio samples = Streaming vs. downloading "What Is The Difference Between Downloading and Str ming? > When you download a video, you have to copy the entire file to your hard disk before you can play it.~ = ee — ee Ss = Two different types of real-time streaming: > Live streaming % used to deliver a live event while it is occurring. Examples: live soccer game, live concerts, live radio, and videoconferences. > On-demand streaming + used to deliver archived media streams. Examples: video clips, movies, and lectures. + How does streaming work? create content ‘mount tosener Content | acquire |! Multimedia Compression + Compression is the pro file size. ss of eliminating redundant information to dec = Compression converts frames and pixels to mathematical algorithms that the computer can understand, = Decompression converts mathematical algorithms back to frames and pixels for playback,+ Two compression methods are: Lossless compression = Run-Length coding = Huffman coding = Arithmetic coding Lossy compression "Transform coding Lossless compression = Lossless compression retains all of the data of the original file as it's converted to a smaller file size. = In lossless compression the information is recovered without any alteration after the decompression stage. = When a lossless file is opened, algorithms restore all compressed information, creating duplicate of the source file, E-Commerce: Digital Markets + E-commerce: use of the Internet and Web to transact business; digitally enabled transactions, + Began in 1995 and grew exponentially; still growing even in a recession. + Companies that survived the dot-com bubble burst and now thrive. Consolidated Mobile Commerce Revenues zo10 20112012 20132014208 Desktop Internet Videoconferencing 1, Fast PC. 300 MHz minimum. 450 MHz best. 2. Good quality video conferencing equipment. Forget “web cameras”. Forget software like Net meeting, 3. Good Intemet connection. Most large university networks are good. Forget S6K modem dial