Page 2 PROJECT PRESENTED TO YOU BY: Page 3 Acknowledgement I would like to take this opportunity...

PROJECT PRESENTED TO YOU BY:

Acknowledgement

I would like to take this opportunity to convey our thanks to our Respected mentors

Mrs. Megha

for their valuable guidance, support and encouragement for this project.

The project relating to “E-COMMERCE” has truly been a great learning experience for us.

Any other suggestions for this project are welcomed.

Electronic Commerce(E-Commerce)

Electronic Commerce or e-commerce, the exchange of goods and services by means of the Internet or other computer networks. E-commerce follows the same basic principles as traditional commerce—that is, buyers and sellers come together to exchange goods for money. But rather than conducting business in the traditional way—in stores and other “brick and mortar” buildings or through mail order catalogs and telephone operators—in e-commerce buyers and sellers transact business over networked computers.

E-commerce offers buyers convenience. They can visit the

World Wide Web sites of multiple vendors 24 hours a day and seven days a week to compare prices and make purchases, without having to leave their homes or offices. In some cases, consumers can immediately obtain a product or service, such as an electronic book, a music file, or computer software, by downloading it over the Internet.

Ecommerce can be broken into four main categories: B2B, B2C, C2B, and C2C

TYPES OF E-COMMERCE

B2B (Business-to-Business)Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable.

B2C (Business-to-Consumer)Businesses selling to the general public typically through catalogs utilizing shopping cart software. By dollar volume, B2B takes the prize, however B2C is really what the average Joe has in mind with regards to ecommerce as a whole.Having a hard time finding a book? Need to purchase a custom, high-end computer system? How about a first class, all-inclusive trip to a tropical island? With the advent ecommerce, all three things can be purchased literally in minutes without human interaction. Oh how far we've come!

C2B (Consumer-to-Business)A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions.

C2C (Consumer-to-Consumer)There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like Pay Pal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995.

ADVANTAGES

Being able to conduct business 24 x 7 x 365.

Access the global marketplace - The Internet spans the world, and it is possible to do business with any business or person who is connected to the Internet.

Speed - Electronic communications allow messages to traverse the world almost instantaneously. There is no need to wait weeks for a catalogue to arrive by post: that communications delay is not a part of the Internet / e-commerce world.

Opportunity to reduce costs - The Internet makes it very easy to 'shop around' for products and services that may be cheaper or more effective than we might otherwise settle for.

Stepping beyond borders to a global view - Using aspects of e-commerce technology can mean your business can source and use products and services provided by other businesses in other countries.

DISADVANTAGES

Time for delivery of physical products - It is possible to visit a local music store and walk out with a compact disc, or a bookstore and leave with a book. E-commerce is often used to buy goods that are not available locally from businesses all over the world, meaning that physical goods need to be delivered, which takes time and costs money.

Limited and selected sensory information. Privacy, security, payment, identity, contract - Many issues arise - privacy of

information, security of that information and payment details, whether or not payment details (eg credit card details) will be misused, identity theft, contract, and, whether we have one or not, what laws and legal jurisdiction apply.

Perishable goods Returning goods - Returning goods online can be an area of difficulty. The uncertainties

surrounding the initial payment and delivery of goods can be exacerbated in this process. Will the goods get back to their source? Who pays for the return postage? Will the refund be paid? Will I be left with nothing? How long will it take? Contrast this with the offline experience of returning goods to a shop.

Size and number of transactions - E-commerce is most often conducted using credit card facilities for payments, and as a result very small and very large transactions tend not to be conducted online. For example, any benefits or conveniences of buying a box of pens online from a US-based business tend to be eclipsed by the cost of having to pay for them to be delivered to you in Australia.

Physical product, supplier & delivery uncertainty - When you walk out of a shop with an item, it's yours. You have it; you know what it is, where it is and how it looks. In some respects e-commerce purchases are made on trust. This is because, firstly, not having had physical access to the product, a purchase is made on an expectation of what that product is and its condition.

IDENTIFIED NEED SELECT A VENDORSEARCHES FOR

PRODUCTS

USE PRODUCT

NEGOTIATES APURCHASE

MAKES PAYMENTRECEIVES REPORT

PERFORMS MAINTENENCE

PROVIDES FEEDBACK

BUYERS CYCLEBUYERS CYCLE

IDENTIFIED NEED

PROVIDES FEEDBACK

SEARCHES FORPRODUCTS

IDENTIFIED NEED SELECT A VENDORSEARCHES FOR

PRODUCTSIDENTIFIED NEED

NEGOTIATES APURCHASE

SELECT A VENDORSEARCHES FOR


MAKES PAYMENTNEGOTIATES A

PURCHASE



RECEIVES REPORT MAKES PAYMENTNEGOTIATES A

PURCHASE



USE PRODUCT


PURCHASE



PROVIDES FEEDBACKUSE PRODUCT


PURCHASE






PURCHASE






PURCHASE






PURCHASE



IDENTIFYCUSTOMERS ADVERTISING

CREATEPRODUCT

RECEIVE PAYMENTSSEND GOODSNEGOTIATE

SALE

SELLERS CYCLE SELLERS CYCLE

IDENTIFYCUSTOMERS

CREATEPRODUCT

ADVERTISINGIDENTIFY

CUSTOMERSCREATE

PRODUCT

RECEIVE PAYMENTS

ADVERTISINGIDENTIFY

CUSTOMERSCREATE

PRODUCT

SEND GOODS RECEIVE PAYMENTS

ADVERTISINGIDENTIFY

CUSTOMERSCREATE

PRODUCT

NEGOTIATESALE


ADVERTISINGIDENTIFY

CUSTOMERSCREATE

PRODUCTCREATE

PRODUCT

NEGOTIATESALE

IDENTIFYCUSTOMERS

CREATEPRODUCT

ADVERTISING

NEGOTIATESALE

IDENTIFYCUSTOMERS

CREATEPRODUCT

RECEIVE PAYMENTS

ADVERTISING

NEGOTIATESALE

IDENTIFYCUSTOMERS

CREATEPRODUCT


ADVERTISING

NEGOTIATESALE

IDENTIFYCUSTOMERS

CREATEPRODUCT

PROCESS INVOLVED IN SALES CYCLE

BANK

MAIL

OPERATING UNIT

PURCHASE REQUISITION

PURCHASE DEPARTMENT

PURCHASE ORDER(COPY)

ACCOUNTDEPARTMENT

RECEIVINGREPORT

RECEIVING DEPARTMENT

BILL OFLADING

CHECK

MAIL ROOM

PURCHASEORDER

INVOICE PURCHASE ORDER

INVOICE

CHECK

BILL OF LADING

BILL OFLADING

SHIPPING DEPARTMENT

BILL OF LADING (COPY)

INVOICE(COPY)

CHECK ACCOUNT DEPARTMENT

SALESORDER

SALES DEPARTMENT

WORK ORDER

MANUFACTURING

CHECK

MAILROOM PURCHASE

ORDER

INVOICE

PURCHASE DEPARTMENT


BILL OF LADING

PURCHASE DEPARTMENT


PURCHASEORDER

BILL OF LADING

PURCHASE DEPARTMENT


INVOICE

PURCHASEORDER

BILL OF LADING

PURCHASE DEPARTMENT


MAIL ROOM

INVOICE

PURCHASEORDER

BILL OF LADING

PURCHASE DEPARTMENT


CHECK

MAIL ROOM

INVOICE

PURCHASEORDER

BILL OF LADING

PURCHASE DEPARTMENT


ACCOUNTDEPARTMENT

CHECK

MAIL ROOM

INVOICE

PURCHASEORDER

PURCHASE DEPARTMENT


RECEIVINGREPORT

ACCOUNTDEPARTMENT

CHECK

MAIL ROOM

INVOICE

PURCHASEORDER

PURCHASE DEPARTMENT


BILL OFLADING

BILL OF LADING

RECEIVINGREPORT

ACCOUNTDEPARTMENT

CHECK

MAIL ROOM

INVOICE

PURCHASEORDER

PURCHASE DEPARTMENT



BILL OFLADING

BILL OF LADING

RECEIVINGREPORT

ACCOUNTDEPARTMENT

CHECK

MAIL ROOM

INVOICE

PURCHASEORDER

PURCHASE DEPARTMENT


CHECK


BILL OFLADING

BILL OF LADING

RECEIVINGREPORT

ACCOUNTDEPARTMENT

CHECK

MAIL ROOM

INVOICE

PURCHASEORDER

PURCHASE DEPARTMENT


PURCHASE ORDER

INVOICE

BILL OFLADING

PURCHASE ORDER

INVOICE

BILL OF LADING

BILL OFLADING

PURCHASE ORDER

INVOICE


BILL OF LADING

BILL OFLADING

PURCHASE ORDER

INVOICE

CHECK


BILL OF LADING

BILL OFLADING

PURCHASE ORDER

INVOICE

CHECK

CHECK


BILL OFLADING

PURCHASE ORDER

INVOICE

ACCOUNT DEPARTMENT

CHECK

CHECK


BILL OFLADING

PURCHASE ORDER

INVOICE

BILL OF LADING

ACCOUNT DEPARTMENT

CHECK

CHECK


BILL OFLADING

PURCHASE ORDER

INVOICE

INVOICE(COPY)

BILL OF LADING

ACCOUNT DEPARTMENT

CHECK

CHECK


BILL OFLADING

PURCHASE ORDER

INVOICE

SHIPPING DEPARTMENT

INVOICE(COPY)

BILL OF LADING

ACCOUNT DEPARTMENT

CHECK

CHECK


BILL OFLADING

PURCHASE ORDER

INVOICE

SALESORDER

SHIPPING DEPARTMENT

INVOICE(COPY)

BILL OF LADING

ACCOUNT DEPARTMENT

CHECK

CHECK


BILL OFLADING

PURCHASE ORDER

INVOICE

INVOICE

SALESORDER

SHIPPING DEPARTMENT

INVOICE(COPY)

BILL OF LADING

ACCOUNT DEPARTMENT

CHECK

CHECK


BILL OFLADING

PURCHASE ORDER

INVOICE

MAILROOM

INVOICE

SALESORDER

SHIPPING DEPARTMENT

INVOICE(COPY)

ACCOUNT DEPARTMENT

CHECK

CHECK


BILL OFLADING

PURCHASE ORDER

INVOICE

BILL OF LADING

MAILROOM

INVOICE

SALESORDER

SHIPPING DEPARTMENT

INVOICE(COPY)

ACCOUNT DEPARTMENT

CHECK

CHECK


BILL OFLADING

PURCHASE ORDER

INVOICE

SALES DEPARTMENT

PURCHASE ORDER

BILL OF LADING

MAILROOM

INVOICE

SALESORDER

SHIPPING DEPARTMENT

INVOICE(COPY)

ACCOUNT DEPARTMENT

CHECK

CHECK


BILL OFLADING

PURCHASE ORDER

INVOICE

WORK ORDER

SALES DEPARTMENT

PURCHASE ORDER

BILL OF LADING

MAILROOM

INVOICE

SALESORDER

SHIPPING DEPARTMENT

INVOICE(COPY)

ACCOUNT DEPARTMENT

CHECK

CHECK


BILL OFLADING

PURCHASE ORDER

INVOICE

MANUFACTURING

WORK ORDER

SALES DEPARTMENT

PURCHASE ORDER

MAILROOM

INVOICE

SALESORDER

SHIPPING DEPARTMENT

INVOICE(COPY)

ACCOUNT DEPARTMENT

CHECK

CHECK


BILL OFLADING

PURCHASE ORDER

INVOICE

ELECTRONIC DATA INTERCHANGE(EDI)

EDI is the computer to computer exchange of business between companies.

EDI replaces the faxing and mailing of paper documents.

About 80,000 companies have made the switch to EDI to improve their Efficiency.

BENEFITS OF EDI

LESS EXPENSIVE THAN HANDLING

PAPER DOCUMENTS

MUCH LESSER LABOUR IS REQUIRED

LESSE ERROROCCURRED

BECAUSE OF COMPUTER

SYSTEM

MORE RELIABLE LESS TIME CONSUMING

INSTANT DOCUMENTRETRIEVAL

ELECTRONIC FUND TRANSFER

System of Transferring money from one bank to another without any paper money changing hands.

Transactions are processed by AUTOMATED CLEARING HOUSE(ACH) network.

ACH is the secure transfer system that connects all U.S financial institutions.

U.S Govt. monitors EFT Compliance through regulation of the FEDERAL RESERVE BOARD which implements Electronic fund transfer ACT (1978)

CHIPs are known as Clearing Interbank Payment System.

Fed WireFed Wire CHIPsCHIPs

TYPES OF EFT NETWORKSTYPES OF EFT NETWORKS

BENEFITS OF EFT

Reduce Administrative cost.

Increase Efficiency.

Simplified Book Keeping.

Greater Security.

VALUE ADDED NETWORKS(VAN)

VAN – It is a Network of origin where Supplying party can enter & Display their Products.

Exchange EDI message among trading partners.

It holds message in “ELECTRONIC MAILBOXES”.

“ELECTRONIC MAILBOX" is a software into which user deposits EDI transactions.

VAN acts as a middlemen b/w Companies.

VAN transfers data in the form of XML and Binary

Van can also modifies the data and then transport the information.

VAN primarily supports B2B (BUSINESS TO BUSINESS) integration.

The disadvantage of VAN is :-

A. It is Slow.

B. Costlier.

What is a E-Marketplace ?

Brings Buyer and Sellers together for mutual Satisfying transaction through online Market.

– Critical Mass of buyers and Sellers

– Interactivity.

– Negotiation And Bargaining.

– New Products & Services.

– Less Time Consuming.

DIAGRAM FOR COMPLETE CYCLE

ADVERTISING AND ONLINE MARKETING

ACTIVE/PUSH BASEDADVERTISING

PASSIVEADVERTISING

ROLE OF INTERMEDIARIES

Activity done from the company’s sideBroadcasts or spammingClassified into 2 modelsBroadcastJunk mail

Discourse Oriented & Content DrivenPromotes Interactivity between potential customers & companyFeedback loop back into the organizationClassified into 4 modelsBillboardCatalogsCustomer EndorsementPortal Based

ROLE OF AD AGENCIESConceptContentCreativityAppealConfigurationROLE OF DISTRIBUTIONCHANNELSLead GenerationPresentationSelling

ACTIVE/PUSH BASED ADVERTISING-MODELS

BROADCASTReaches great number of people

Utilizes direct material, spot television, cable television

Intrusive & resource intensive

JUNK MAIL

Targeted mailing lists to specialized audience- low waste in ad exposure

High cost per contact

Need for an updated

& relevant mailing list

Scarce audience attention

ELECTRONIC PAYMENT SYSTEM

Customer InternetMerchant

Acquiring BankCard Issuing Bank

Card Association Clearing house

1 2

3 84

56

7

9

EXPLANATION OF DIAGRAM

Suppose that you are a customer, now as a customer you will provide the card number as part of the sale voucher to the merchant

Today customer ordinarily wipes the card through a magnetic reader. Merchant may have the policy of checking on transaction above a certain amount with his bank, which is called Acquiring Bank

The acquiring bank may complete a check that reaches all the way to your Card – Issuing Bank

Assuming that the checking process is successfully completed the merchant then submits the transaction to the acquiring bank and the settlement is made through the Card Association – Clearing House

Now your account will be debited and merchant account will be credited and hence the transaction is completed

Ways To Make Payment

JOINTELECTRONIC

TRANSACTION

ELECTRONICPURSES

SMARTCARDS

ELECTRONICCHEQUES

CREDITCARD

ELECTRONICPAYMENTS

Smart cards have an embedded microchip instead of magnetic strip. Three types of smart cards have established :

Contact Cards : Smart cards that need to insert in a reader in order to work, such as ATM.

Contactless Cards : Smart cards that don’t need to be inserted into a reader. Just waving them near a reader is sufficient for the card to exchange data. This type of cards is used for opening doors.

Combi Cards : Contains both technologies & allow a wider range of applications.

SMART CARDS

ATM MACHINE

CREDIT CARDS

PLAIN CREDIT CARD Easiest method of payment over a

public network such as telephone lines or the internet.

Authentication is a significant problem as the Vendor can never be sure whether a person using the card is its owner or not.

Low level of internet security makes this method problematic.

ENCRYPTED CREDIT CARD

Makes transaction more secure as the credit card details are encrypted before sending them out.

But there is a problem relating to this card is that – the cost of encrypted credit card prohibits low value payments.

THIRD PARTY VERIFICATION

•It solves the problem of security and verification

•Collects and approve payments from one client to another

ELECTRONIC CHEQUES

Credit Card

ACH

MoneyTransfer

ATMEPH

certificate

EPHcertificate

EPHcertificate

The Internet

Consumer

ClearinghouseNetwork

Other Financial

Institutions

ELECTRONIC PURSES/ WALLETS

It is another way to make payment over the net.

Similar to prepaid card.

While making purchases, customers pass their cards through a vendor’s point of sale terminal. No credit check or signature is needed. Validation is done through a PIN number.

Once the transaction is complete, funds are deducted from the card & transferred to vendor’s terminal.

Example : Debit Card, ATM Card, etc.

SECURED ELECTRONIC TRANSACTION

SET is the system for ensuring the security of financial transaction on the internet.

It was initially supported by MASTERCARD , VISA , MICROSOFT , NETSCAPE & others.

With SET , a user is given an ELECTRONIC WALLET (digital certificate) and a transaction is conducted and verified using a combination of digital certificates and digital signatures among the purchaser , a merchant and the Purchaser Bank in a way that ensures privacy and confidentiality.

SET makes use of NETSCAPE’s SECURE SOCKETS LAYERS (SSL)

JOINT ELECTRONIC TRANSACTION

Second standard is the Joint Electronic Payments initiative, led by the World Wide Web Consortium and Commerce Net. JEPI is an attempt to standardize payment negotiations.

On the buyer’s side, it serves as a network interface that enables a web browser to use a variety of payment protocols.

On the merchant’s side it acts between the network and transport layers to pass off the incoming transactions to the proper transport protocol.

JEPI makes it easier to for the buyer to use a single application, single interface in a variety of commercial situations. It makes it easier for merchants to support a variety of payment system.

BASIC NETWORKING

Networks Network is a collection of computers that allows various users

to communicate and share resources.

Basically of two parts:-

Server - Computers of higher configuration who distributes or farther shares various resources with other clients.

Client – Computers of lower configuration sometimes relying completely on the server for their work known as Dumb Terminals/Nodes, whereas clients that can work on their on are Smart Terminals/Workstations.

Identifying the Various

Hardware Components

Setting up of a network requires at least two components:-

Access Device/Network Interface Card (NIC)

Cable to transmit the data Repeaters and routers

The Access Device/NIC : Is the basic component that will allow the computer to communicate over a network. Main working is to get the broken up data given by the software and send them across the network over cables.

The Cables : They are responsible for the actual transportation of data. There are various types of uses for setting up a network:

Co-axial cables Twisted Pair Cables Fiber Optic Cables.

Software plays a vital role in setting up the network. Its various components are:

Multi-user Operating Systems : Operating systems specifically for networking are Windows NT,SCO,UNIX,LINUX and so on. They have a software that supports multiple-users and have the ability of establishing a communication between computers.

Device Drivers : These are list of commands used by the OS to use specific hardware device. Hence the device drivers for the NIC are required so that the OS can use them with ease.

Protocol Suites : These are the main software component of a network that basically provides certain rules and specification for communication between computers. It also provides unique identities to each computer in the network for identification purposes so that any data sent to a particular computer does not go to any different one. Most widely used protocol suites today are TCP/IP, IPX/SPX, etc.

Identifying the Software Components

PROTOCOLS

Protocol comes from the Greek word PROTOCOLLON , meaning first glue.

Protocols refer to a set of rules that enables to connect and transmit data to one another , that is also called communication protocol.

Protocol can be implemented by hardware , software , or a combination of both.

Protocol is like a Language to make two Computers to talk to each other.

Protocol are rules & regulations that Govern our Internet

TYPES OF PROTOCOL

INTERNETWORK PROTOCOL

ROUTINEINFORMATION

PROTOCOL

ADDRESS RESOLUTIONPROTOCOL

INTERNETCONTROLMESSAGE

PROTOCOL

TRANSPORT CONTROL

PROTOCOL

USERDATAGRAMPROTOCOL

FILE TRANSFERPROTOCOL

(FTP)

SINGLE MAILTRANSFERPROTOCOL

SIMPLENETWORK

MANAGEMENTPROTOCOL

NETWORK FILESYSTEM

REMOTEPROCEDURE

CALLS

EXTERNAL DATA REPRESENTATION

TRANSPORTLAYER

INTERFACE

APPLICATIONPROGRAMMING

INTERFACE

TRANSMISSION CONTROL PROTOCOL / INTERNET PROTOCOL (TCP/IP)

TCP/IP is not a protocol but a set of protocols-PROTOCOL STACK

There are several other protocols related to TCP/IP like FTP (for file transfer) , HTTP (for web browsing) and SMTP (for E-mail).

Application LayerApplication Layer

Transport LayerTransport Layer

Network LayerNetwork Layer

Link LayerLink Layer

TCP / IP

Application protocol such as FTP(for file transfer) , SMTP (for E-MAIL) , HTTP (Web browsing).It handles

the detail of particular application

Layer is in charge of getting data sent by upper layer , dividing

them into packets and sending them to lower layer.TCP

, UDP

It adds Virtual address to the data received from Transport

layer.This Virtual Address is called as IP

Address.

Packets here are called as DATAGRAMS.This layer spread the packet all over the network

This kind of Approach was used in Primitive times.

Now we are working on OPEN SYSTEM INTERCONNECTION (OSI) approach which is explained on next slide.

OSI REFERENCE MODEL

ApplicationApplication

PresentationPresentation

SessionSession

TransportTransport

NetworkNetwork

Data LinkData Link

PhysicalPhysical

L

A

Y

E

R

77

66

55

44

33

22

11Responsible for transmitting and receiving the frames of data

Responsible for establishing the connection path between the sending and receiving peer

Responsible for the Integrity of the transmission

Manages the flow of communication which can be unidirectional or bidirectional.

Responsible for the Encoding of data. Example – ASCII , EBCDIC.

Responsible to provide the interface between the applications and the computer network services.

Responsible for breaking the data to be sent into smaller pieces called FRAMES.

Page 2 PROJECT PRESENTED TO YOU BY: Page 3 Acknowledgement I would like to take this opportunity...

Documents

Transcript of Page 2 PROJECT PRESENTED TO YOU BY: Page 3 Acknowledgement I would like to take this opportunity...