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1) Define e-commerce and distinguish it from e-business.

E-commerce is nothing but buying and selling of goods around the web. On the contrary, e-business is a
little different as it is not limited to, commercial transactions, but it also provides other services. These are
the two emerging modes of doing business, which are gaining importance with the passage of time.

Ex: Gone are the days, when you have to go to the market to buy a single item. Nowadays you just have to
place an order online, and that item will come to you within few minutes. Online shopping is getting popular,
just because of its simplicity and convenience. This is possible only because of two electronic networks,
namely, as e-commerce and e-business.

E-commerce is concerned with the firm’s dealings with its customers, clients or suppliers. Conversely, e-
business refers to undertaking industry, trade, and commerce, with the help of information technology and
communication. The article presented to you explains the difference between e-commerce and e-business.

2) List the major types of EC (by transaction)

There are 6 basic types of e-commerce:

 Business-to-Business (B2B)
 Business-to-Consumer (B2C)
 Consumer-to-Consumer (C2C)
 Consumer-to-Business (C2B).
 Business-to-Administration (B2A)
 Consumer-to-Administration (C2A)

Business-to-Business (B2B)
Business-to-Business (B2B) e-commerce encompasses all electronic transactions of goods or
services conducted between companies. Producers and traditional commerce wholesalers typically operate
with this type of electronic commerce.

Business-to-Consumer (B2C)
The Business-to-Consumer type of e-commerce is distinguished by the establishment of electronic
business relationships between businesses and final consumers. It corresponds to the retail section of e-
commerce, where traditional retail trade normally operates.

These types of relationships can be easier and more dynamic, but also more sporadic or discontinued. This
type of commerce has developed greatly, due to the advent of the web, and there are already many virtual
stores and malls on the Internet, which sell all kinds of consumer goods, such as computers, software,
books, E, cars, food, financial products, digital publications, etc.
When compared to buying retail in traditional commerce, the consumer usually has more information
available in terms of informative content and there is also a widespread idea that you’ll be buying cheaper,
without jeopardizing an equally personalized customer service, as well as ensuring quick processing and
delivery of your order.


Consumer-to-Consumer (C2C)
Consumer-to-Consumer (C2C) type e-commerce encompasses all electronic transactions of goods
or services conducted between consumers. Generally, these transactions are conducted through a third
party, which provides the online platform where the transactions are actually carried out.

Consumer-to-Business (C2B)
In C2B there is a complete reversal of the traditional sense of exchanging goods. This type of e-
commerce is very common in crowdsourcing based projects. A large number of individuals make their
services or products available for purchase for companies seeking precisely these types of services or

Examples of such practices are the sites where designers present several proposals for a company logo
and where only one of them is selected and effectively purchased. Another platform that is very common in
this type of commerce is the markets that sell royalty-free photographs, images, media and design elements,
such as iStockphoto.
Business-to-Administration (B2A)
This part of e-commerce encompasses all transactions conducted online between companies and
public administration. This is an area that involves a large amount and a variety of services, particularly in
areas such as fiscal, social security, employment, legal documents and registers, etc. These types of
services have increased considerably in recent years with investments made in e-government.

Consumer-to-Administration (C2A)

The Consumer-to-Administration model encompasses all electronic transactions conducted

between individuals and public administration.

Examples of applications include:

 Education – disseminating information, distance learning, etc.

 Social Security – through the distribution of information, making payments, etc.
 Taxes – filing tax returns, payments, etc.
 Health – appointments, information about illnesses, payment of health services, etc.

Both models involving Public Administration (B2A and C2A) are strongly associated to the idea of efficiency
and easy usability of the services provided to citizens by the government, with the support of information
and communication technologies.

3) Distinguish between business-to-consumer, business-to-business, and intrabusiness EC.

 B2C and B2B are two forms of commercial transactions. B2C, which stands for business-to-
consumer, is a process for selling products directly to consumers. B2B, which stands for business-to-
business, is a process for selling products or services to other businesses. The business systems that
support B2B or B2C communications, transactions and sales administration differ in complexity, scope,
scale and cost, so it is important that you implement the right system for your customers. Intra-business EC


category includes all internal organizational activities that involve the exchange of goods, services and
information among various unit and individuals in that organization.

4) List major technology and non-technology limitations of EC (three each).

The technical limitations of EC are as follows: ·

 There is a lack of system security, reliability, standards, and some communication protocols. ·
There is insufficient telecommunication bandwidth. ·
 The software development tools are still evolving and changing rapidly.
 It is difficult to integrate the Internet and EC software with some existing applications and

Non-Technical Limitations of EC are as follows:

 Cost and justification. The cost of developing EC in-house can be very high, and mistakes due to
lack of experience may result in delays.
 There are many opportunities for outsourcing, but where and how to do it is not a simple issue.
Furthermore, to justify the system one must deal with some intangible benefits (such as improved
customer service and the value of advertisement), which are difficult to quantify.
 Security and privacy. These issues are especially important in the B2C area, especially security
issues which are perceived to be more serious than they really are when appropriate encryption is
used. Privacy measures are constantly improved.

5) Describe electronic storefronts and malls.


Electronic retailing – (e-tailing) is the direct sale of products and services through electronic
storefronts or electronic malls, usually designed around an electronic catalog and/or auctions.
Electronic Storefront is a web site that represents a single store. Many found on the internet.
Electronic Malls, also known as a cybermall or an e-mall, is a collection of individual shops grouped
under a single internet address. The goal is to provide a one stop shopping place that offers a wide
range of products and services.

6) List the benefits of cyber banking.

Today’s online banking customers enjoy instant access from their computer or mobile device to a full range of
services, allowing you to:

o Check balances on accounts and view records of your transactions

o Pay bills automatically each month with easy-to-set-up auto payment
o Transfer funds between accounts
o Download or print statements for your tax or personal records
o Access your account 24/7


7) Describe electronic securities trading.

Electronic or scripless trading, sometimes called e-trading or paperless trading is a method of

trading securities (such as stocks, and bonds), foreign exchange or financial
derivatives electronically. Information technology is used to bring together buyers and sellers
through an electronic trading platform and network to create virtual market places. They can include
various exchange-based systems, such as NASDAQ, NYSE Arca and Globex, as well as other
types of trading platforms, such as electronic communication networks (ECNs), alternative trading
systems, crossing networks and "dark pools". Electronic trading is rapidly replacing human trading
in global securities markets. Electronic trading is in contrast to older floor trading and phone trading
and has a number of advantages, but glitches and cancelled trades do still occur.

8) Describe the online job market.

The job market is the market in which employers search for employees and employees search for
jobs. The job market is not a physical place as much as a concept demonstrating the competition
and interplay between different labor forces. The job market can grow or shrink depending on the
labor demand and supply within the overall economy, specific industries, for specific education
levels or specific job functions.

9) Explain how electronic auction work.

The electronic auction (e-Auction) is an e-business between auctioneers and bidders, which takes
place on an electronic marketplace. It is an electronic commerce which occurs business to business
(B2B), business to consumer (B2C), or consumer-to-consumer (C2C).
The auctioneer offers his goods, commodities or services on an auction side on the internet. Interested
parties can submit their bid for the product to be auctioned in certain specified periods. The auction is
transparent; all interested parties are allowed to participate the auction in a timely manner.
The two major types of the electronic auction are forward auction in which several buyers bid for one
seller's goods and reverse auction in which several sellers bid for one buyer's order.
Forward auctions take the form of a single seller offering an item for sale, with buyers competing to
secure the item by bidding the price upward (see Figure 1). Forward auctions are far-better understood
by the public at large than reverse auctions as to how they operate, due primarily to the fact that they
are widely used at the consumer level. In fact, forward auctions underlie everything from eBay and
other online auction sites to auctions of art, wine, and other collectibles. They are also widely used for
auctioning everything from autos, real estate, machinery, etc., where the goal is for the seller to receive
the most money possible for the item being offered at auction. Thus, a forward auction should be
utilized for sales of goods and services of all types, whether conducted online, offline, or a hybrid of
the two

10) Describe the EC consumer behavior model.


For decades, market researchers have tried to understand consumer behavior, and they have
summarized their findings in various models. The purpose of a consumer behavior model is to help
vendors understand how a consumer makes a purchasing decision. If a firm understands the
decision process, it may be able to influence the buyer’s decision, for example, through advertising
or special promotions.
The following diagram shows the basics of a consumer behavior model in the EC environment. The
model is composed of the following parts:

Independent (or uncontrollable) variables, which are shown at the top of the diagram can be
categorized as personal and environmental characteristics.
Intervening (or moderating) variables are variables within the vendors’ control. They are divided
into market stimuli and EC systems
The Decision making process, which is shown in the center of the diagram, is influences by the
independent and intervening variables. This process ends with the buyer’s decisions resulting from
the decision-making process.
The dependent variables describe types of decisions made by buyers.


11) Define mobile computing and m-commerce.

Mobile e-commerce (m-commerce) is a term that describes online sales transactions that use wireless
electronic devices such as hand-held computers, mobile phones or laptops. These wireless devices
interact with computer networks that have the ability to conduct online merchandise purchases. Any
type of cash exchange is referred to as an e-commerce transaction. Mobile e-commerce is just one of
the many subsets of electronic commerce. Mobile e-commerce may also be known as mobile

Mobile computing is human–computer interaction by which a computer is expected to be transported

during normal usage, which allows for transmission of data, voice and video. Mobile computing involves
mobile communication, mobile hardware, and mobile software. Communication issues include ad hoc
networks and infrastructure networks as well as communication properties, protocols, data formats and
concrete technologies. Hardware includes mobile devices or device components. Mobile software
deals with the characteristics and requirements of mobile applications.

12) Define the following terms: PDA, WAP, SMS, GPS, WI-FI and smartphone.

Personal DIGITAL Assistant (PDA)- a small handheld wireless computer such as the family of Palm
handhelds and the Pocket PC devices from the companies like HP.

Wireless Application Protocol (WAP) – a set of communication protocols that enable different kinds
of wireless devices to talk to a server installed on a mobile network, so user can access to the internet.
WAP offered secure internet browsing.

Short Message Service (SMS) – a technology, in existence since 1991 that allows for the sending of
a short text messages (up to 160 character in 2004) on certain cellphones) SMS messages can be
send or receive currently, even during a voice or data call. Use by hundreds of millions of users, SMS
is known as the e-mail of m-commerce.

Global Position System (GPS) –a satellite-based tracking that enable to determine of GPS device’s

Short for Wireless Fedility (Wi-Fi) – refers to 802.11b standard on which most of the local wireless
area networks WLAN run.

Smartphones – internet-enable cell phones that can support mobile application. These “phones with
a brain” are becoming a standard device. They include WAP microprocessor for the internet access
and the capability as of PDAs as well.


13) List the value-added attributes of mobile computing.

Ubiquity: The availability of any products or services at any location at any given time.
Convenience: Users can operate the wireless devices in any environments.
Instant connectivity: Connections are available quickly and easily at anytime and anywhere.
Personalization: The ability to customize the information to the customers.
Localization of products and services: Knowing the exact locations of the customers to offer
product or services information is the key factors to success
14) List at least five major drivers of mobile computing.

Widespread Availability of Mobile Devices. According to (2008), 50 percent of the

world population will use mobile phones in 2008. It is estimated that within a few years, about 70
percent of cell phones will have Internet access (“smart-phones”). Thus, a potential mass market is
available for conducting discovery, communication, collaboration, (e.g.,see “Global Mobile,” a
special report, Computer World, May 14,2007), and m-commerce. Cell phones are spreading
quickly even in developing countries.

No Need for a PC. Today’s PDAs and some cell phones have as much processing power as
personal computers did just a few years ago, and possess the range of software available to PC
users. This suggests that the smart phone-not the PC-may soon become the foremost tool that
connects people to the Internet.

The Handset Culture. Another driver of m-commerce is the widespread use of cell phones, which
is a social phenomenon, especially among the 15-to-25-year-old age group. These users will
constitute a major force of online buyers once they begin to make and spend larger amounts of
money. The use of SMS has been spreading like wildfire in several European and Asian countries.
In the Philippines, for example SMS is a national phenomenon, especially in the youth market. As
another example, Japanese send many more messages though mobile phones than do Americans,
who prefer the desktop or laptop for e-mail.

Declining Prices and Increased Functionalities. The price of wireless devices is declining, and
the per-minute pricing of mobile services declined by 50 percent in recent years. At the same time,
functionalities are increasing. Also, a flat fee (e.g., monthly) encourages more use of mobile

Improvement of Bandwidth. To properly conduct m-commerce, it is necessary to have sufficient

bandwidth for transmitting text; however, bandwidth is also required for voice, video, and
multimedia. The 3G (third-generation) and 3.5G technologies (described in Chapter 4) provide the
necessary band width.


The Centrino Chip. A major boost to mobile computing was provided in 2003 by Intel with its
Centrino chip. This chip, which became a standard feature in most laptops by 2005, includes three
important capabilities: (1) a connection device to a wireless local area network; (2) low usage of
electricity, enabling users to do more work on a single batter charge; and (3) a high level of security.
The Centrino (Centrino 2 in 2008) is making mobile computing the common computing environment.

Availability of Internet Access in Automobiles. The number of cars equipped with high-speed
Internet access (e.g., see and has increased and will continue to grow.

Networks. A driving development of mobile computing is the introduction of the third- and fourth-
generation wireless environments known as 3G and 4G, and the adoption of Wi-Fi as a wireless
local area network (LAN), WiMax, and wide area networks.

15) Describe the major hardware devices use for mobile computing.

Hardware devices:

o Mobile computing device - be it, a notebook, hand-held computer, pen computer, PDA, PalmOS
compatible PDA, Symbian EPOC handheld device, Windows CE/Pocket PC device, or a modern
smart phone with Wireless Internet connectivity.
o A suitably-configured wireline or wireless WAN modem, wireless LAN adapter, or a flash card either
as a distinctly separate accessory or embedded on the device - as is the trend now.
o A Web Server with wireless support, WAP gateway, a Communications Server and/or MCSS
(Mobile communications server switch) or a wireless gateway embedded in wireless carrier's
network - this server provides communications functionality to allow the handheld device to
communicate with the Internet or Intranet infrastructure.
o An application or database server (the hardware piece) with application logic and business
application database - tier 2 server
o Optionally, a large enterprise application server (tier3) in the form of a Unix super server, IBM'ss
AS/400 server or IBM's OS/390 mainframe.

a. List the major software items used for mobile computing.

Software items:


 Mobile client OS-type software that resides in the mobile device - it may be Windows98/2000/NT,
PalmOS, Win CE (or Pocket PC), EPOC, a specialized OS like Blackberry, or a Web browser
 Mobile application user interface with application logic in a handheld PDA, smartphone, Palm or a
Wintel notebook. In the Internet world, it is often under the control of a browser or microbrowser.
 Application server and/or database server software
 Back-end legacy application software on large Unix servers (from vendors such as Sun, IBM, and
HP), IBM AS/400,or IBM S/390 mainframes
 Application middleware (a piece of software that communicates with backend legacy systems and
web-based application servers). IBM's WebSphere, BEA's WebLogic or Oracle's 9i are typical
examples in this category.
 Wireless middleware that links multiple wireless networks to application servers
 Data synchronization software that synchronizes data in the mobile device with the network server
or the backend server
 Mobile Device management software like XcelleNet's Afaria, Synchrologic Mobile suite or Mobile
Automation's MA2000.
 Finally, the most useful software - end user application like messaging, sales force automation,
public query, data collection, etc.


17) Describe the major components of a mobile network.


18) List the major standard used by mobile phone system (e.g., GSM)

GSM (Global System for Mobile Communications, originally Groupe Spécial Mobile) is a standard
developed by the European Telecommunications Standards Institute (ETSI) to describe the protocols
for second-generation digital cellular networks used by mobile devices such as tablets, first deployed in
Finland in December 1991.[2] As of 2014, it has become the global standard for mobile communications
– with over 90% market share, operating in over 193 countries and territories. [3]
2G networks developed as a replacement for first generation (1G) analog cellular networks, and the
GSM standard originally described as a digital, circuit-switched network optimized for full
duplex voice telephony. This expanded over time to include data communications, first by circuit-
switched transport, then by packet data transport via GPRS (General Packet Radio Services)
and EDGE (Enhanced Data rates for GSM Evolution, or EGPRS).
Subsequently, the 3GPP developed third-generation (3G) UMTS standards, followed by fourth-
generation (4G) LTE Advanced standards, which do not form part of the ETSI GSM standard.
"GSM" is a trademark owned by the GSM Association. It may also refer to the (initially) most common
voice codec used, Full Rate.
19) Define 1G, 2G, 2.5G, 3G, and 4G.

1G: Voice Only

 1G is an analog technology and the phones generally had poor battery life and voice quality was large without
much security, and would sometimes experience dropped calls.The max speed of 1G is 2.4 Kbps.



 Cell phones received their first major upgrade when they went from 1G to 2G. This leap took place in
1991 on GSM networks first, in Finland, and effectively took cell phones from analog to digital.The 2G
telephone technology introduced call and text encryption, plus data services like SMS, picture
messages, and MMS.Although 2G has replaced 1G and is superseded by the technologies described
below, it's still used around the world.The max speed of 2G with General Packet Radio Service (GPRS)
is 50 Kbps or 1 Mbps with Enhanced Data Rates for GSM Evolution (EDGE).

2.5G & 2.75G: Finally Data, but Slow

 Before making the major leap from 2G to 3G wireless networks, the lesser-known 2.5G and 2.75G was an
interim standard that bridged the gap 2.5G introducing a new packet switching technique that was more
efficient than what we previously being used.This led to 2.75G which provides a theoretical threefold capacity
increase. 2.75G with EDGE began in the US with GSM networks (AT&T being the first).

3G: More Data! Video Calling & Mobile Internet

 3G networks were introduced in 1998 and stand for the next generation in this series; the third-generation.3G
ushered in faster data-transmission speeds so you could use your cell phone in more data-demanding ways
like for video calling and mobile internet. Like 2G, 3G evolved into 3.5G and 3.75G as more features were
introduced in order to bring about 4G.The max speed of 3G is estimated to be around 2 Mbps for non-moving
devices and 384 Kbps in moving vehicles. The theoretical max speed for HSPA+ is 21.6 Mbps.

4G: The Current Standard

 The fourth generation of networks is called 4G, which was released in 2008. It supports mobile web access like
3G but also gaming services, HD mobile TV, video conferencing, 3D TV and other things that demand higher
speeds.With the implementation of 4G, some 3G features are removed, such as the spread spectrum radio
technology; others are added to higher bit rates due to smart antennas.The max speed of a 4G network when
the device is moving is 100 Mbps or 1 Gbps for low mobility communication like when stationary or walking.

5G: Coming Soon

 5G is a not-yet-implemented wireless technology that's intended to improve on 4G. 5G promises significantly
faster data rates, higher connection density, much lower latency, among other improvements.

20) Describe GPS and GIS.

GPS is an acronym for Global Positioning System. This is one of the many ways that are used to
pinpoint an exact location on the earth’s surface. This is made possible by a vast network of satellites
that are located in space and which relay information on the ground regarding specific coordinates on
the earth’s surface. The satellites operate in such a way that they relay radio signals from space to
GPS receivers on the ground using a process referred to as trilateration. Specific locations on earth
can also be located using a vast network of several satellites and receivers combined.
The GPS technology was developed for use by the US military in the 1960s but it has turned out to be
a revolutionary invention that defines the way people live on a daily basis. Today, GPS technology is
used in almost every facet of daily lives. It has been used in the aviation industry (airplane, drones),
tourism, and even mapping. One of the most common applications of GPS is in mapping and surveying.


Application of GPS:

1. Locating positions: This is the most common use of GPS. This applies to situations where you
may be travelling to an unknown destination and you need to find your way around. GPS will help you
locate every area within the locality and will even provide the best routes to use to get there.
2. Getting access to emergency roadside support: In case you find yourself stranded in an unknown
location and need emergency help, you can simply call an emergency number from your Smartphone
and emergency services will automatically locate you without you sharing your location.
3. Preventing car and other automobile theft: Cars are fitted with GPS trackers to help keep track of
the exact location of your car at all times so that even if the car is stolen you will be able to trace it.

4. Mapping and surveying: Using GPS technology to survey positions and locations on the earth is
not only cheaper but also saves a lot of time. You can easily pinpoint locations on a map or highway.

GIS on the other hand is an acronym for Geographical Information System and is most commonly mistaken
to mean the same thing as GPS. GIS is a computer program that is designed to capture, analyze, interpret
and store data that has been transmitted from navigation systems such as GPS and make the information
available for use. The first rudimentary GIS system was designed in 1960 to be used in Canada and a
desktop version of it was created in 1986 to be used by computer end users. GIS can be used to create or
generate a map that can then be interpreted to show patterns such as the movement of people from one
place to another, the spread of a particular disease and so on. In other words, GIS makes the information
from GPS more sensible such that without GIS, GPS would not be manipulated and utilized to its maximum.


Applications of GIS
1. Data mapping: GIS is used to provide visual representations of data. Almost 80 percent of the data
received has some spatial element in it and GIS helps to visualize the data in order to make some sense
out of it.
2. Proximity analysis: GIS is used to show the relationship between two different locations and the
proximity of two locations on a map.
3. Location analysis: Data collected and analyzed by GIS system is used to determine the best location of
a new retail outlet or a new football pitch in relation to other football fields.