Amity Campus Uttar Pradesh India 201303

ASSIGNMENTS
PROGRAM: BSc IT SEMESTER-IV
Subject Name Study COUNTRY Roll Number (Reg.No.) Student Name : : : :

INSTRUCTIONS a) Students are required to submit all three assignment sets. ASSIGNMENT Assignment A Assignment B Assignment C b) c) d) e) DETAILS Five Subjective Questions Three Subjective Questions + Case Study Objective or one line Questions MARKS 10 10 10

Total weightage given to these assignments is 30%. OR 30 Marks All assignments are to be completed as typed in word/pdf. All questions are required to be attempted. All the three assignments are to be completed by due dates and need to be submitted for evaluation by Amity University. f) The students have to attached a scan signature in the form.

Signature : Date :

_________________________________ _________________________________

( ) Tick mark in front of the assignments submitted Assignment Assignment B Assignment C A

Fundamentals of E-Commerce
1

Assignment - A

2 Q1. Discuss the unique features of e-commerce. One of the basic features of e-commerce is the ubiquity. This means that the information or product is readily available wherever you are. The internet medium of advertisement not only introduces you to a new product, but also makes the product readily available which is not possible through newspaper, television or radio advertisements. This is the best possible medium to conquer time and space. This method reduces the cost factor to travel to the market as well as saves a lot of time. You also reduce your transaction costs by shopping or making deals through the internet. 3 E-commerce is the use of internet and the web to make business transactions. Millions of people make purchases on the web, so what makes e-commerce so special? There are 8 unique features of e-commerce that make it so successful. The first thing that makes e-commerce so great is Ubiquity; it is available everywhere at anytime. Online the stores never close. Online shopping has hurt traditional businesses in some ways and helped it in other ways. A positive thing is clicks-and-bricks; you can order online and pick it up at the store. E-commerce has forced business to get online or loss business. One of the negatives is that e-commerce takes away business from traditional businesses. It hurts small "mom and pop" shops as well as big business. Office supply companies like Staples and OfficeMax send out coupons offering $10 off $50 if you buy in-store instead of online so they can reduce in store stock and increase sales. Many companies have a sales quota to make for each store and if they don't they will have to close that store. Q2.Discuss about the various types of e-commerce, with advantage of each. There are various types of e-commerce though we tend to focus on the business to consumer type, or "b2c." But did you know that e-commerce can also apply to business to business (b2b), consumer to business (c2b) and consumer to consumer (c2c)? It may surprise you that, out of all these types, business to business takes up the largest share of e-commerce. Let's discuss the different types of e-commerce, and look at examples of each. Business to Consumer (b2c): Business to consumer is the most familiar type of e-commerce. This model is used when the business is a supplier, and the consumer is the purchaser. The most common set up for this type of e-commerce is for the business to sell items through its Web site. Usually, these businesses offer a catalog and an online shopping cart, and the business is able to accept payment through its Web site. The consumer then has immediate access to the service online, or the product is shipped to them directly.& An example of business to consumer e-commerce is Pizza Hut. Pizza Hut was the first delivery restaurant to offer e-commerce on their site. Consumers who order pizzas through Pizza Hut's Web site have the option to pay online or upon delivery or pick-up.

Business to Business (b2b): Most businesses do not manufacture the products they sell. Instead, they purchase these products in bulk from wholesalers or the actual product manufacturer. The businesses are then engaging in transactions with each other. E-commerce in this case takes the form of purchase orders, invoices and payment receipts. Best Buy is a perfect example of a business that sells items not originally manufactured by the company. Consumer to Business (c2b): Consumer to business e-commerce occurs when a consumer is selling a product or service to a business. In this instance, a consumer is defined as a non-business entity. The most obvious example of this type of e-commerce is the relationship between a freelancer and a possible employer. A freelancer, or the consumer, sets the price first instead of the other way around, and the business decides if that price is fair. An example of this type of eCommerce is Get-A-Freelancer, where freelancers offer their services to companies who post available work. Consumer to Consumer (c2c): This business model is one of the most popular types of ecommerce. Sites such as eBay and Craigslist allow consumers to buy and sell products directly without an imposing middleman. Q3. Discuss How does the Internet change consumer and supplier relationship. The rise of the Internet has substantially altered the once structured relationship between the consumer and the supplier. One of the main factors has been the ability for the middle-man to be cut out. The customer once had only one option of going to a physical store and purchasing a product, which the store had more than likely bought in from a supplier and who may have even acquired the product from another source. This chain obviously increased cost, as all members of the link needed to make a profit, with the customer footing the bill. The Internet has given the customer greater control in which they can freely pick and choose suppliers and also easily access review and price comparison sites; which have replaced the wordof-mouth aspect stores previously relied on for attracting new customers. The Internet has also been a great catalyst for many start-up businesses to rapidly rise up from humble beginnings. The numerous marketing ploys that can be achieved on the web for next to nothing have enabled small businesses to get their products out to a mass market. Q4.What are the principal payment systems for electronic commerce? Any money is adopted for its three principal functions: measurement, payment, saving. E-commerce is based on electronic payment systems. Those systems deal with virtual money (cyber money). E-commerce transactions comprise three actors: consumer, seller and banks. When dealing in e-commerce, we care about privacy and authentication. To fulfill those criteria, ecommerce procedures are based on public key encryption and the digital signature technique. An e-commerce payment system facilitates the acceptance of electronic payment for online transactions. Also known as a sample of Electronic Data Interchange (EDI), e-commerce payment

systems have become increasingly popular due to the widespread use of the internet-based shopping and banking. Q5.Discuss the role of m-commerce in business and what are the most important mcommerce applications? Ubiquity: The use of wireless device enables the user to receive information and Conduct transactions anywhere, at anytime. Accessibility: Mobile device enables the user to be contacted at virtually anytime And place. The user also has the choice to limit their accessibility to particular persons or Times. Convenience: The portability of the wireless device and its functions from storing Data to access to information or persons. Localization: The emergence of location-specific based applications will enable the User to receive relevant information on which to act. Instant Connectivity (2.5G): Instant connectivity or "always on" is becoming more prevalent will the emergence of 2.5 G networks, GPRS or EDGE. Users of 2.5 G services will benefit from easier and faster access to the Internet. Personalization: The combination of localization and personalization will create a new channel/business opportunity for reaching and attracting customers. Personalization will take the form of customized information, meeting the users preferences, followed by payment mechanisms that allow for personal information to be stored, eliminating the need to enter credit card information for each transaction. Time Sensitivity Access to real-time information such as a stock quote that can be acted upon immediately or a sale at a local boutique. Security depending on the specific end user device, the device offers a certain level of inherent security.

Important m-commerce applications: M-commerce transactions point to online shopping

Web sites tailored to mobile phones and PDAs which are being equipped with the capabilities of browsing, selection, purchase, payment and delivery. These sites also include all the necessary shopping features, such as online catalogs, shopping carts, and back office functions as currently available for desktop computers. Leading online booksellers already started the commercial activities for wireless devices.

Assignment B
Q1. Q2. Q3. What are the security issues of E-commerce? What is E-shopping? What are the advantages and disadvantages of eRead this Case study, then answer the questions below.

shopping?

Dynamic pricing at SmithKline Beecham When the healthcare company SmithKline Beecham bought supplies of a basic solvent recently, the price was 15 per cent lower than the days spot price in the commodity market. On other purchases, also of highly specified solvents and chemicals, SmithKline Beecham is regularly beating its own historic pricing by between 7 and 25 per cent. The reason is that SmithKline Beecham is using the Internet to hold downward or reverse auctions in which suppliers bid against each other for pre-specified contracts. FreeMarkets, the company that manages the SmithKline Beecham auctions, quotes examples of savings achieved by other clients in these virtual marketplaces: 42 per cent on orders for printed circuit boards, 41 per cent on labels, 24 per cent on commercial machinings and so on. As well as production items, the process also works well for many services, such as car hire contracts. This pricing free-for-all sounds a little shocking at first. After all, successful companies are supposed to buy on quality, nurture critical supplier relationships, and think strategically. And, of course, they still do. Guy Allen, director of purchasing at SmithKline Beecham emphasizes that the auction itself is a new part of a still rigorous buying process. Its just one tool in our toolbox, he says. The process only works if you put good purchasing management up front. This includes issuing a particularly detailed request for proposals (RFP) to which hopeful suppliers respond as usual, but without quoting a price.

Based on the RFPs, selected suppliers are invited to take part in the auction. Training in using the software is available. Once the bidding starts, the participants see every bid, but not the names of the bidders. In the final stages of the auction, each last bid extends the bidding time by one more minute. One auction scheduled for two hours ran for four hours and 20 minutes and attracted more than 700 bids. A buyer need not necessarily accept the lowest bid, but may still prefer to use a tried and tested supplier at a slightly higher price. But the reverse auction offers buyers a number of benefits: it shortens the time spent negotiating separately with each supplier, the inclusion of non-incumbent suppliers can help to bring pricing down and, according to Mr Allen, It makes the process a little more transparent, since everyone can see the lowest price on offer. In general, non-incumbent suppliers like the process, though some incumbent suppliers are a little less happy. SmithKline Beecham is using private online auctions for global procurement of highly specified items at a spend that is attractive to the market. In contrast, Andrew Biggs, managing director of Bidbusiness.co.uk, is providing public reverse auction facilities for what he describes as low touch products construction bricks and sand and gravel, for example as well as haulage services and builders skips. Buyers can post their tenders on his specialist sites and sellers can bid for the work using a pseudonym. Mirroring the need for liquidity in successful financial markets, auctions need a competitive environment and public auction sites seek to attract more buyers and sellers through features such as Category Watch from OpenSite, the company that supplies software for Bidbusiness. This feature will notify registered users by e-mail when an item of interest to them is posted. Now companies that provide auction facilities are looking to factor other variables into their software as well, to let buyers and sellers take account of differences in transport costs, lead times, duration of warranty periods and so on.

The strength of the auction is that it allows prices to fluctuate according to demand and factors in the value of opportunity. But, arguably, its weakness is the fixed nature of the event. The auction format demands the simultaneous attention of everyone interested in that particular contract or item. Airlines try to match availability to demand and reward early bookers by creating fare classes where some seats on a particular flight cost more than others. The problem is that fare classes are determined in advance and fare differentials can be rigid, creating a blunt tool, according to Sharookh Cambata, president of Greaves Travel USA, an airline ticket wholesaler. Greaves has teamed up with Equant to develop a dynamic pricing engine to automatically adjust the price of airline tickets according to demand. First, the airline needs to be able to track all bookings into one point, so the pricing engine can view the current request against other demands. The pricing engine must then work rapidly. Customers booking through a web site, for example, are not going to wait minutes for lengthy number crunching; they want an instant price. Greaves will soon start trials of the new system, called Web-fares, but Mr Cambata believes it also has potential for other pre-booked travel services, such as hotel accommodation. Using the system, a web site user would quickly get the price for the flight or service they wanted, but could also be directed to a cheaper alternative at a different time. Online auctions are no longer just for surplus goods or unwanted gifts, and the advent of dcommerce is more than marketing hype. The concept of dynamic pricing is gathering interest very quickly. For example, Transco, the UK provider of gas piping infrastructure, has recently introduced web-based auctions to sell capacity in its pipelines, since demand for gas fluctuates according to weather and other conditions. Dynamic pricing is a convincing example of the way in which the internet will fundamentally change the way we do business.

Questions 1. Explain how SmithKline Beecham is achieving lower prices than traditionally through ecommerce. 2. To what extent do you think this approach would work for companies smaller than

SmithKline Beecham? 3. What are the implications for a dynamic pricing engine referred to a supplier and its

customers.

Assignment C
4 5 1 By Electronic Commerce we mean: 6 7 8 9 a. Commerce of electronic goods b. Commerce which depends on electronics c. Commerce which is based on the use of internet d. Commerce which is based on transactions using computers connected by telecommunication network 10 11 2 For carrying out B2B e-Commerce the following infrastructure is essential: 12 (i) World Wide Web (ii) Corporate network (iii) Electronic Data Interchange standards (iv) Secure Payment Services (v)Secure electronic communication link connecting businesses 1 2 3 4 1 a. i, ii, iii b. ii, iii, iv c. ii, iii, iv, v d. i, ii, iii, iv, v

3 For carrying out B2C e-Commerce the following infrastructure is essential (i) World Wide Web (ii) Corporate network (iii) Electronic Data Interchange standards (iv) Secure Payment Services (v) Secure electronic communication link connecting businesses 1 2 3 a. i, iv b. i, iii, iv c. ii, iii

4 1 2 3 4

d. i, ii, iii, iv

4 For carrying out C2C e-Commerce the following infrastructure is essential (i) World Wide Web (ii) Corporate network (iii) Electronic Data Interchange standards (iv) Secure Payment Services (v)Secure electronic communication link connecting businesses 1 2 3 4 a. i and ii b. ii and iv c. i and iii d. i and iv

1 2 3

5 Advantages of B2C commerce are (i) Business gets a wide reach to customers (ii) Payment for services easy (iii)Shop can be open 24 hours a day seven days a week (iv)Privacy of transaction always maintained 1 2 3 4 a. i and ii b. ii and iii c. i and iii d. iii and iv

6 B2C commerce 0 1 2 3 a. includes services such as legal advice b. means only shopping for physical goods c. means only customers should approach customers to sell d. means only customers should approach business to buy

2 3 4 5 (i)wide variety of goods can be accessed and comparative prices can be found (ii) shopping can be done at any time (iii)privacy of transactions can be guaranteed (iv)security of transactions can be guaranteed 1 2 3 4 1 2 3 (i) internet access is not universally available (ii) Credit card payment security is not yet guaranteed (iii) Transactions are de-personalized and human contact is missing (iv) Cyberlaws are not in place 1 2 3 4 1 a. i and ii b. ii and iii c. i, ii, iii d. i, ii, iii, iv a. i and ii b. ii and iii c. iii and iv d. i and iv 7 Advantages of B2C commerce to customers are

8 Disadvantages of e-Commerce in Africa are

9 Electronic Data Interchange is necessary in 1 2 3 4 a. B2C e-Commerce b. C2C e-Commerce c. B2B e-Commerce d. Commerce using internet

2 3 4

5 6 10 EDI requires 1 2 3 4 7 8 11 EDI standards are 1 2 3 4 1 a. not universally available b. essential for B2B commerce c. not required for B2B commerce d. still being evolved a. representation of common business documents in computer readable forms b. data entry operators by receivers c. special value added networks d. special hardware at co-operating Business premises

12 In B2B e-Commerce 1 2 3 4 5 6 7 8 (i) Co-operating Business should give an EDI standard to be used (ii) Programs must be developed to translate EDI forms to a form accepted by application program (iii) Method of transmitting/receiving data should be mutually agreed (iv) It is essential to use internet a. i, ii 1 b. i, ii, iii c. i, ii, iii, iv d. ii, iii, iv

2 3 13 EDI use 1 2 3 4 4 5 14 EDI over internet uses a. requires an extranet b. requires value added network c. can be done on internet d. requires a corporate intranet

1 2 3 4 1 2 3 4 5

a. MIME to attach EDI forms to e-mail messages b. FTP to send business forms c. HTTP to send business forms d. SGML to send business forms

15 By security in e-Commerce we mean (i) Protecting an organizations data resource from unauthorized access (ii) Preventing disasters from happening (iii) Authenticating messages received by an organization (iv) Protecting messages sent on the internet from being read and understood by unauthorized persons/organizations 1 2 3 4 a. i, ii b. ii, iii c. iii, iv d. i, iii, iv

6 7 16 A firewall is a 1 2 3 4 8 9 17 A firewall may be implemented in 1 2 3 4 10 11 18 Firewall as part of a router program a. routers which connect intranet to internet b. bridges used in an intranet c. expensive modem d. users application programs a. wall built to prevent fires from damaging a corporate intranet b. security device deployed at the boundary of a company to prevent unauthorized physical access c. security device deployed at the boundary of a corporate intranet to protect it from unauthorized access d. device to prevent all accesses from the internet to the corporate intranet

1 0 1 2 1

a. filters only packets coming from internet b. filters only packets going to internet c. filters packets travelling from and to the intranet from the internet d. ensures rapid traffic of packets for speedy e-Commerce

19 By encryption of a text we mean 1 2 3 4 a. compressing it b. expanding it c. scrambling it to preserve its security d. hashing it

2 3 0 1 2 3 20 Encryption is required to (i) protect business information from eavesdropping when it is transmitted on internet (ii) efficiently use the bandwidth available in PSTN (iii) to protect information stored in companies databases from retrieval (iv) to preserve secrecy of information stored in databases if an unauthorized person retrieves it 2 3 4 5 4 5 21 Encryption can be done 1 2 3 4 1 2 3 a. only on textual data b. only on ASCII coded data c. on any bit string d. only on mnemonic data a. i and ii b. ii and iii c. iii and iv d. i and iv

22 A digital signature is 1 2 3 4 a. a bit string giving identity of a correspondent b. a unique identification of a sender c. an authentication of an electronic record by tying it uniquely to a key only a sender knows d. an encrypted signature of a sender

5 6 23 A digital signature is required 0 1 2 3 (i) to tie an electronic message to the senders identity (ii) for non repudiation of communication by a sender (iii) to prove that a message was sent by the sender in a court of law (iv) in all e-mail transactions 2 3 4 5 1 a. i and ii b. i, ii, iii c. i, ii, iii, iv d. ii, iii, iv

24 In electronic cheque payments developed, it is assumed that most of the transactions will be 0 1 2 3 a. customers to customers b. customers to business c. business to business d. banks to banks

25 In Electronic cash payment 1 2 3 4 a. a debit card payment system is used b. a customer buys several electronic coins which are digitally signed by coin issuing bank c. a credit card payment system is used d. RSA cryptography is used in the transactions

3 4 5 6 7

26 In Electronic cash payment (i) a customer withdraws coins in various denominations signed by the bank (ii) the bank has a database of issued coins (iii) the bank has a database of spent coins (iv) the bank cannot trace a customer 1 2 3 4 a. i, ii b. i, ii, iii c. i, ii, iii, iv d. ii, iii, iv

8 9

27. E-business is:

10 1. the use of electronic communications to support the full range of business processes. 11 2. an organisation using electronic media to sell direct to its customers. 12 3. an organisation using electronic media to purchase from to its suppliers. 13 4. any electronically mediated communication between an organisation and its stakeholders. 14 5. none of the above. 15 28. Sell-side e-commerce is: 16 17 18 19 1. any electronically mediated communication between an organisation and its stakeholders. 2. the use of electronic communications for all business processes. 3. an organisation using electronic media to purchase from to its suppliers. 4. an organisation using electronic media to sell to its customers directly or indirectly. 5. 5. none of the above. 29. Which of the following is a limitation of E-Commerce? a. b. Ability to operate 24 hours a day. Integration of distributor and supplier IT systems.

c. d. 30.

Special network and hardware requirements. Increased market area

What type of commerce occurs when a business sells its products over the Internet to other businesses? a. B2B b. B2C c. C2B d. Enterprise commerce

31.

________is a software that helps a web server process web pages containing server-side scripts or tags. a. web server b. server operating system c. network operating system d. none of the above e.

32.

In order to prevent the theft of credit card numbers and banking information, the _________________communications protocol is used. a. b. c. d. TCP/IP HTML XML SSL

20

33.

What are plastic cards the size of a credit card that contains an embedded chip on which digital information can be stored? a. Customer relationship management systems cards b. E-government identity cards c. FEDI cards d. Smart cards

34

Which of the following is used in B2B to pay for purchases? a. b. c. d. e-commerce financial electronic data interchange electronic data exchange electronic checks

35.

An agent of the biller that accepts remittance information on behalf of the

Biller is a. Biller payment provider (BPP) b. Biller service provider (BSP) c. Consolidator d. Customer service provider (CSP) 36. A chemical manufacturer has transactions that are predominantly: a. b. c. d. business to business consumer to consumer consumer to business business to consumer

37.

E-business infrastructure refers to: a. b. c. d. e. e-business networking e-business client/server environment e-business applications e-business content hosting all of the above.

38.

The website for a company is hosted on a:

a. b. c. d.

web infrastructure. Web client Web page Web server

39.

Which of the applications has most increased business usage of the Internet?

a. b. c. d. e.
40

World Wide Web (WWW). Extensible Markup Language (XML). Electronic Data Interchange (EDI). Usenet Newsgroups None of the above

The typical sequence for a web transaction is:

a. script runs on server, user presses submit on form, transmitted across Internet, result returned. b. transmitted across Internet, user presses submit on form, script runs on server, result returned. c. transmitted across Internet, script runs on server, result returned, user presses submit on form. d. result returned, user presses submit on form, transmitted across Internet, script runs on server. e. none of the above