Information Security Chapter-6 Introduction to E-Commerce

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Chapter-6: Introduction to E-Commerce

Q-1: Explain Introduction to E-Commerce.

Commerce constitutes the exchange of products and services between business

groups and individuals.

Commerce or trade can be seen as one of the essential activities of any

business.

Electronic commerce (e-commerce) uses information and communication

technology to enable the external activities and relationships of the business

with individuals, groups and other businesses.

Electronic commerce executes on the resources of Internet, Intranets and

Extranets.

Electronic commerce involves interactive marketing process and payment

processes on WWW.

Scope of Electronic commerce(e-commerce)

The e-commerce transactions can be either buy-side e-commerce or sell-side e-

commerce.

Both types of e-commerce are relying on Internet technologies.

1. Buy-side e-commerce

Buy-side e-commerce refers to transactions to procure resources needed by

an organization from its suppliers i.e., e-commerce transactions between a

purchasing organization and its suppliers.

Examples of buy-side e-commerce activities are product discovery, product

evaluation, terms negotiations, order placement, order tracking, order

payment, product service and support.

2. Sell-side e-commerce

Sell-side e-commerce refers to transactions involved with selling products to

an organization’s customer i.e., e-commerce transactions between a supplier

organization and its customer.

Examples of sell-side e-commerce are market research, market stimulation,

terms negotiations, order receipt, order selection, order billing, payment,

delivery, customer service and support.

Information Security Chapter-6 Introduction to E-Commerce

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Electronic commerce can include interactive marketing ordering payment

customer support processes by flooding e-commerce catalog and auction site on

WWW.

The importance of the Internet for business is that it provides new

opportunities for conducting relationships with customers and suppliers.

Essential IT Services for e-commerce

The information technology services required for Electronic commerce are:

1. Internet

2. Intranets

3. extranets

E-commerce is mainly supported by following IT services:

1. Electronic mail

2. Electronic fund transfer

3. Electronic bulletin boards

4. Electronic Data Interchange (EDI)

5. Credit cards

6. Smart cards

7. Electronic catalogues

The Internet, intranet and extranet provide a globalized connection to

customers and suppliers.

The internet provides a huge electronic market place that will largely replace

existing forms of market economy.

Information Security Chapter-6 Introduction to E-Commerce

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Internet provides businesses, entrepreneurs an economic model on which

electronic commerce is based.

Internet is accessible to everyone and same technology is available to everyone

and nobody owns it.

Applications of different internet tools for e-commerce are summarized in

following table.

Q-2: Explain Transactions on E-Commerce.

1. B2C E- Commerce

Information Security Chapter-6 Introduction to E-Commerce

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2. B2B E-Commerce

3. C2C E-Commerce

Q-3: Explain Requirement of security on E-Commerce.

Requirements of Security on E-Commerce

Payment Processes

Information Security Chapter-6 Introduction to E-Commerce

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Electronic Funds Transfer (EFT)

Information Security Chapter-6 Introduction to E-Commerce

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Types / Forms of EFT Systems

Secure Electronic Payments / Electronic Payment Processes

[A] Requirements for security system

Information Security Chapter-6 Introduction to E-Commerce

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1. Authentication

2. Privacy and confidentiality

3. Integrity

4. Non-repudiability

5. Availability

[B] Security measures

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Secure Electronic Transaction (SET)

Internet: 1. Internet is network of Computers which is open for all.

2. Internet itself contains a large number of intranets.

3. Unlimited number of users.

4. Visitors traffic is unlimited.

5. Contains unlimited source of information.

6. Collection of various LANs, WANs and MANs.

Intranet:

1. Intranet is network of Computers designed for a specific group of users.

2. Intranet can be accessed from Internet but with restrictions.

3. Limited number of Users.

4. Limited visitors traffic.

5. Contains only specific group purpose information.

6. Mostly any of LAN or MAN or WAN.

Extranet The Extranet is a portion of an organization's Intranet that is made accessible to

authorized outside users without full access to an entire organization's intranet.