LEC 1 INTRO E-Business Technology

Question Bank

Q1 Justify “Value based pricing is a key to successful

e-business.”

Definition
●​ Pricing strategy based on customer’s perceived value rather than cost of
production
●​ Focuses on benefits, outcomes, and problem-solving ability of the product

Justification

1. Customer-Centric Approach

●​ Matches price with what customers feel the product is worth

●​ Important in e-business where decisions are perception-driven

2. Competitive Advantage

●​ Avoids price wars

●​ Differentiates products based on value, not price

3. Higher Profit Margins

●​ Allows premium pricing

●​ Maximizes revenue from high-value customers

4. Improves Customer Satisfaction

●​ Customers feel price is justified

●​ Builds trust and long-term loyalty

5. Supports Market Segmentation

●​ Enables tiered pricing (basic, premium, enterprise)

 ●​ Targets different customer groups based on willingness to pay

6. Strengthens Brand Image

●​ Positions business as quality-driven, not price-driven

●​ Enhances brand perception in online markets

7. Encourages Innovation

●​ Businesses focus on improving value to justify pricing

●​ Leads to better products and services

Q2 Justify the statement E-business is the combination of

web and IT
OR
How internet helps to improve e-business. Illustrate through
example.
●​ E-business refers to conducting business using Internet technologies and
IT systems.
●​ It combines Web (online platforms) and IT (information processing)
Web
1. Universal Access

●​ The web allows access from anywhere in the world using the internet
●​ Users can connect through different devices like mobiles, laptops, tablets
●​ Enables global reach and 24/7 availability of business services

2. Standards

●​ The web works on common standards like HTTP, HTML, and HTTPS
●​ These standards ensure compatibility across different browsers and
devices
●​ Helps businesses operate smoothly without technical barriers

IT (Information Technology)
1. Data Applications

●​ IT systems store, process, and manage business data

●​ Includes databases, analytics tools, and software applications
●​ Helps in decision-making and understanding customer behavior

2. Core Business Processes

●​ IT supports key operations like order processing, inventory, accounting,

and logistics
●​ Automates and streamlines daily business activities

3. Reliability

●​ IT systems ensure consistent and error-free performance

 ●​ Minimizes system failures and downtime

4. Security

●​ Protects sensitive information such as customer data and payment details

●​ Uses encryption, firewalls, and authentication systems

5. Availability

●​ Ensures systems and services are accessible whenever needed

●​ Supports continuous operation of e-business platforms

Q3)What are Different E-Business Features? Explain with

Examples
E-business refers to conducting business activities electronically using internet
technologies, digital communication systems, and online platforms. It includes
buying and selling products, customer service, online marketing, supply chain
management, and business communication.

Different Features of E-Business

1. Global Reach

●​ E-business allows organizations to reach customers worldwide through the

internet.
●​ Businesses are not limited to a specific geographical location.

Example

Amazon selling products globally.

2. 24×7 Availability
 ●​ E-business systems operate continuously without time limitations.
●​ Customers can access services anytime.

Example

Online banking services available day and night.

3. Faster Communication

●​ Internet technologies enable quick communication with customers,

employees, vendors, and partners.
●​ Reduces communication delays.

Example

Customer support through live chat and emails.

4. Reduced Operational Cost

●​ Automation and online transactions reduce paperwork, labor, and

administrative expenses.

Example

Online ticket booking systems reducing manual work.

5. Electronic Transactions

●​ Supports online buying, selling, and payment processing.

●​ Enables secure digital transactions.

Example
Using UPI or credit cards for online shopping.

6. Improved Customer Service

●​ Businesses provide personalized services and faster support.

●​ Enhances customer satisfaction.

Example

E-commerce websites recommending products based on customer preferences.

7. Real-Time Information Sharing

●​ Information is updated and shared instantly across systems.

●​ Helps in faster decision making.

Example

Real-time inventory tracking in online shopping websites.

8. Automation of Business Processes

●​ Business operations such as billing, inventory management, and order

processing are automated.

Example

Automatic order confirmation and invoice generation.

9. Better Supply Chain Management

●​ Improves coordination between suppliers, manufacturers, and distributors.

Example

Tracking shipment and delivery status online.

10. Online Marketing and Advertising

●​ Businesses promote products through websites, social media, and search

engines.

Example

Advertising products on Instagram and Google Ads.

11. Scalability and Flexibility

●​ E-business systems can easily handle increasing customers and

transactions.

Example

Online streaming platforms supporting millions of users.

12. Data Collection and Analysis

●​ Businesses collect customer and market data for decision making.

Example

Analyzing customer buying behavior using BI tools.

Benefits of E-Business Features

●​ Increased sales and profits

●​ Faster business operations
●​ Better customer satisfaction
 ●​ Improved communication efficiency
●​ Global market access
●​ Reduced operational costs

LEC 2 E BUSINESS AND E COMMERCE

Q1 Explain the following Strategies with examples.(MODELS)

a. B2B (Business to Business)

Definition:​
B2B refers to transactions between two businesses, where products,
services, or information are exchanged between companies.

Business-to-business electronic commerce (B2B) typically takes the form of

automated processes between trading partners and is performed in much higher
volumes than business-to-consumer (B2C) applications.

Key Features:

●​ Deals between manufacturers, wholesalers, and retailers

●​ High volume transactions
●​ Often automated and long-term relationships

Example:

●​ Intel selling microprocessors to Dell

●​ Heinz supplying ketchup to McDonald’s

b. B2C (Business to Consumer)

Definition:​
B2C refers to businesses selling products or services directly to end
consumers through online platforms. Electronic commerce comprises
commercial transactions, involving both organisations and individuals.

Key Features:

●​ Direct interaction with customers

●​ Focus on customer experience and marketing
●​ Smaller transaction size compared to B2B

Example:

●​ Dell selling laptops to individual customers

●​ Online pharmacy providing consultation and medicines

c. B2A (Business to Administration)

Definition:​
B2A (Business to Administration) refers to transactions between businesses
and government agencies, often through online platforms (e-government).

Key Features:

●​ Digital interaction with government

●​ Efficient processing of documents and services
●​ Improves transparency and speed

Example:

●​ Businesses filing tax returns online

●​ Accessing legal documents through government portals like FindLaw

d. C2C (Customer to Customer)

Definition:​
C2C refers to transactions between individual consumers, usually through
online marketplaces.
Key Features:

●​ Individuals sell directly to other individuals

●​ Platforms act as intermediaries
●​ Trust and security are important

Example:

●​ Selling or buying products on eBay

●​ One person selling an iPod to another customer

Q2 What are different business strategies? And what are different

E-business strategies and how will e business strategies benefit
the e business ?

Different Business Strategies

Business strategies are plans and techniques used by organizations to achieve

business goals, improve profits, and gain competitive advantage.

1. Cost Leadership Strategy

●​ Business focuses on producing goods or services at the lowest cost.

●​ Helps attract price-sensitive customers.
●​ Emphasis on operational efficiency and cost reduction.

Example:​
Walmart offers products at low prices.

2. Differentiation Strategy

●​ Business offers unique and high-quality products or services.

●​ Focuses on innovation, branding, and customer satisfaction.

Example:​
Apple provides premium and innovative products.
3. Focus Strategy

●​ Business targets a specific customer group or market segment.

●​ Products are designed according to specialized customer needs.

Example:​
Rolls-Royce Motor Cars targeting luxury customers.

4. Growth Strategy

●​ Business aims to expand its market share, products, or services.

●​ Expansion may occur through partnerships or new markets.

Example:​
Amazon expanding into cloud computing and streaming services.

5. Innovation Strategy

●​ Focuses on developing new technologies and creative ideas.

●​ Helps businesses stay competitive.

Example:​
Tesla innovating in electric vehicles.

Different E-Business Strategies

E-business strategies use internet technologies and digital systems to improve

business processes and online operations.

1. Online Marketing Strategy

●​ Uses digital platforms such as social media, search engines, and email
marketing.
●​ Helps businesses reach global customers.
Example:​
Advertising products through Instagram and Google Ads.

2. E-Commerce Strategy

●​ Selling products and services through websites and mobile applications.

●​ Includes online ordering and payment systems.

Example:​
Flipkart and Amazon India

3. Customer Relationship Management (CRM) Strategy

●​ Uses digital tools to maintain strong customer relationships.

●​ Improves customer support and satisfaction.

Example:​
Online customer support and personalized recommendations.

4. Supply Chain Management Strategy

●​ Uses online systems to manage suppliers, inventory, and logistics.

●​ Improves coordination and reduces delays.

Example:​
Real-time inventory tracking systems.
5. E-Procurement Strategy

●​ Purchasing goods and services electronically.

●​ Reduces paperwork and procurement cost.

Example:​
Online supplier portals and electronic purchase orders.

6. Mobile Commerce Strategy

●​ Conducting business through smartphones and mobile apps.

●​ Supports easy and fast transactions.

Example:​
Shopping applications and digital wallets.

Benefits of E-Business Strategies

E-business strategies provide several benefits to organizations.

Benefits

●​ Reduces operational and administrative costs

●​ Improves communication efficiency
●​ Faster business transactions
●​ Better customer service and satisfaction
●​ Global market reach
●​ Real-time information sharing
●​ Improved inventory management
●​ Increased sales and profit margins
●​ Supports 24×7 business operations
●​ Enhances decision making using digital data
Q3 Write Categories For Ebusiness

E-Business Technology

Use of internet technologies, IT systems, data, and applications to conduct and

transform business processes, communication, and transactions.

Categories

a. E-Bank:​
Online banking, digital payments, fund transfer, net banking, mobile banking

b. E-Trade:​
Online trading, stock exchange, digital marketplace, investment platforms,
securities trading

c. E-Consulting:​
Online advisory, business consulting, virtual meetings, expert services, remote
guidance

d. E-Engineer:​
CAD software, online design, remote collaboration, engineering tools, simulation
systems

e. E-Learning:​
Online courses, virtual classrooms, e-content, learning platforms, distance
education

f. E-Mail:​
Electronic communication, messaging, file sharing, instant delivery, formal
communication

g. E-Marketing:​
Digital marketing, social media marketing, SEO, online advertising, email
marketing

h. E-Transaction:​
Online payments, e-commerce, payment gateways, secure transactions, digital
receipts
 LEC 3 E-BUSINESS INFRASTRUCTURE

Q1 Explain e-business infrastructure with respect to e-business

applications framework

Definition

E-business infrastructure refers to the combination of hardware, software,

internet services, security systems and communication technologies
required to support and operate e-business applications effectively.

The E-business Application Framework connects different technological

components that help organisations conduct online business activities efficiently.
Components of E-Business Infrastructure
1. Hardware

Physical devices used in e-business operations.​

Examples:

●​ Servers
●​ Computers
●​ Networking devices
●​ Storage systems

Role:

●​ Supports data processing and communication.

2. Software

Programs and applications used for business operations.​

Examples:

●​ Operating systems
●​ Web applications
●​ Database management systems
●​ ERP software

Role:

●​ Helps manage transactions, customer data and online services.

3. Internet Access & Services

Provides connectivity and online communication.​

Examples:

●​ Internet service providers

●​ Web hosting
 ●​ Cloud services
●​ Browsers

Role:

●​ Enables online interaction between businesses and customers.

4. E-Payment Systems

Facilitates secure online financial transactions.​

Examples:

●​ Credit/debit cards
●​ UPI
●​ Net banking
●​ Digital wallets

Role:

●​ Ensures fast and convenient electronic payments.

5. Certificates & Security

Used for authentication and protection of data.​

Examples:

●​ SSL certificates
●​ Digital signatures
●​ Encryption technologies

Role:

●​ Maintains security, privacy and trust in e-business.

6. Advertisement & Online Promotion

Supports digital marketing and customer reach.​

Examples:

●​ Social media advertising

●​ Search engine marketing
●​ Banner ads
●​ Email marketing

Role:

●​ Increases visibility, customer engagement and sales.

Q2 Explain e-business infrastructure with respect to e-business

applications framework
E-business helps organizations reduce different business costs by using internet
technologies, automation, and digital communication systems. It improves
efficiency, accuracy, and speed in business operations.

Reduction of Operational Cost

●​ Automation of business processes reduces manual work.

●​ Online communication decreases paperwork and printing expenses.
●​ Digital transactions reduce administrative expenses.
●​ Faster processing saves employee time and labor costs.
●​ Online customer support reduces service expenses.

Reduction of Inventory Cost

●​ Real-time inventory tracking avoids overstocking and understocking.

●​ Businesses can maintain optimum stock levels using online systems.
●​ Faster supply chain communication reduces storage cost.
●​ Automated inventory management improves warehouse efficiency.
Reduction of Procurement Cost

●​ Online procurement systems simplify purchasing procedures.

●​ E-business enables direct communication with suppliers.
●​ Electronic documentation reduces processing cost.
●​ Faster order placement and tracking save time and money.

Reduction of Marketing Cost

●​ Digital marketing is cheaper than traditional advertising.

●​ Social media and email marketing reach large audiences at low cost.
●​ Online campaigns can target specific customers effectively.

Reduction of Communication Cost

●​ Emails, video conferencing, and online collaboration tools reduce travel

and communication expenses.
●​ Faster interaction with customers, vendors, and employees improves
efficiency.

Role of BI (Business Intelligence) Algorithms in Cost Reduction

BI algorithms analyze business data and help organizations make better

decisions.

Ways BI Algorithms Help

●​ Predict customer demand to avoid excess inventory.

●​ Identify unnecessary operational expenses.
●​ Improve supply chain management through data analysis.
●​ Detect fraud and financial risks.
●​ Optimize pricing and resource allocation.
●​ Analyze customer behavior for better marketing strategies.
●​ Improve forecasting and planning accuracy.

Benefits of BI in E-business

●​ Better decision making

●​ Increased efficiency
●​ Reduced wastage
 ●​ Improved profitability
●​ Faster business operations

Q2 Key components and steps in E-commerce

Implementation, best practices in e business implementation

Steps in E-Commerce Implementation

Key Components and Steps in E-Commerce Implementation and Best

Practices in E-Business Implementation

E-commerce implementation is the process of planning, developing, deploying,

and maintaining an online business system for buying and selling products or
services through the internet. It involves website development, databases,
payment systems, security, and online business management.

Key Components of E-Commerce Implementation

●​ User-friendly website interface

●​ Product catalogue and shopping cart
●​ Business logic and transaction processing
●​ Database management system
●​ Payment gateway integration
●​ Security and authentication systems
●​ Inventory and order management
●​ Communication and customer support systems

Steps in E-Commerce Implementation

1. Business Strategy and Requirement Gathering

●​ Identify business goals and customer requirements.

●​ Determine products and services to be offered online.
 ●​ Analyze market demand and prepare project planning.

2. Choosing Business Model

●​ Select suitable e-commerce model such as:

○​ B2B (Business to Business)
○​ B2C (Business to Consumer)
○​ C2C (Consumer to Consumer)
○​ C2B (Consumer to Business)

3. Website Planning and Structure Design

●​ Design website structure, navigation, and page layouts.

●​ Organize product categories and customer interaction flow.
●​ Ensure scalability, flexibility, and better user experience.

4. Development of Website and Business Functions

●​ Develop product pages, shopping carts, dashboards, and forms.

●​ Implement order processing, customer authentication, and transaction
handling.
●​ Create systems for communication between website functions and stored
data.

5. Database and Server Setup

●​ Create and manage databases for customers, products, inventory, and

transactions.
●​ Configure servers, hosting, and internet infrastructure.
●​ Ensure proper backup and recovery systems.

6. Payment Gateway Integration

●​ Integrate secure online payment systems.

●​ Support UPI, debit cards, credit cards, and net banking.
●​ Use encryption and digital certificates for transaction security.
7. Inventory and Order Management

●​ Implement inventory tracking and stock management systems.

●​ Automate order processing, billing, and shipping operations.

8. Security and Testing

●​ Protect customer and business data using authentication and firewalls.

●​ Test website functionality, performance, and payment systems.
●​ Identify and remove technical errors and bugs.

9. Deployment and Launch

●​ Deploy the e-commerce website online.

●​ Make the system accessible to customers.
●​ Start online marketing and promotional activities.

10. Maintenance and Optimization

●​ Monitor website performance regularly.

●​ Update software, security systems, and business content.
●​ Improve customer experience and operational efficiency continuously.

Best Practices in E-Business Implementation

1. Customer-Focused Website Design

●​ Provide simple navigation and responsive design.

●​ Improve customer experience and accessibility.

2. Strong Security Measures

●​ Use secure payment gateways, encryption, and authentication systems.

●​ Protect customer information and online transactions.

3. Fast and Reliable Performance

 ●​ Optimize website speed and reduce downtime.
●​ Ensure smooth online transactions.

4. Mobile Compatibility

●​ Ensure websites and applications work efficiently on smartphones and

tablets.

5. Effective Inventory Management

●​ Maintain real-time stock monitoring and inventory control.

6. Continuous Maintenance and Updates

●​ Regularly update software and security features.

●​ Fix technical issues and improve system performance.

7. Digital Marketing Integration

●​ Use SEO, social media marketing, and email marketing.

●​ Increase online visibility and customer reach.

8. Data Analysis and BI Tools

●​ Analyze customer behavior and business performance.

●​ Support better decision making and forecasting.

9. Reliable Customer Support

●​ Provide fast online support and problem resolution.

10. Scalability and Flexibility

●​ Design systems that can support future growth and increasing users.

Benefits of Effective E-Business Implementation

●​ Reduced operational cost

●​ Faster business transactions
 ●​ Improved customer satisfaction
●​ Better communication efficiency
●​ Increased sales and profit margins
●​ Better inventory and order management
●​ Global market reach

Q3) Different Front-End and Back-End Technologies for

E-Business and E-Commerce
E-business and e-commerce systems use front-end and back-end technologies
to manage website interfaces, business operations, databases, and online
transactions.

Front-End Technologies

Front-end technologies are used to create the user interface that customers
interact with directly.

Functions of Front-End Technologies

●​ Design website layout and appearance

●​ Display product catalogues and shopping carts
●​ Improve customer interaction and user experience
●​ Handle website navigation and responsiveness

Different Front-End Technologies

1. HTML (HyperText Markup Language)

●​ Used to create web pages and structure website content.

2. CSS (Cascading Style Sheets)

●​ Used for website styling, colors, and layouts.

3. JavaScript

●​ Adds interactivity and dynamic features to websites.

4. React

●​ JavaScript library used for building modern user interfaces.

5. Angular

●​ Framework used for developing dynamic web applications.

6. Bootstrap

●​ Framework used for responsive and mobile-friendly website design.

Back-End Technologies

Back-end technologies manage server-side operations, databases, and business

logic.

Functions of Back-End Technologies

●​ Process customer orders and online payments

●​ Manage databases and inventory systems
●​ Handle authentication and security
●​ Connect website with servers and databases

Different Back-End Technologies

1. PHP

●​ Server-side scripting language used for web development.

2. Java

●​ Used for secure and large-scale e-commerce applications.

3. Python

●​ Used for web applications, automation, and data processing.

4. [Link]
 ●​ JavaScript runtime used for scalable server-side applications.

5. MySQL

●​ Database management system used to store application data.

6. Oracle Database

●​ Enterprise-level database system for managing large business data.

7. MongoDB

●​ NoSQL database used for flexible and scalable applications.

8. Apache and Nginx

●​ Web servers used to host and manage websites.

Benefits of Front-End and Back-End Technologies

●​ Better user experience

●​ Faster website performance
●​ Secure online transactions
●​ Efficient database management
●​ Improved scalability and flexibility
●​ Reliable business operations
 N-Tier Architecture in E-Commerce
N-tier architecture generally consists of the following layers:

1. Presentation Tier

●​ This is the front-end layer that users interact with.

●​ Displays web pages, product catalogs, shopping carts, and forms.
●​ Handles user interface and customer interaction.

Example:​
E-commerce website pages and mobile app interfaces.

2. Application Tier (Business Logic Tier)

●​ Processes business rules and application functions.

●​ Handles order processing, customer authentication, and payment
processing.
●​ Connects the front-end with the database.

Example:​
Calculating total order amount and validating transactions.

3. Data Tier (Database Tier)

●​ Stores and manages business data.

●​ Maintains customer records, product details, inventory, and transaction
history.
●​ Ensures secure data storage and retrieval.

Example:​
MySQL, Oracle, or SQL Server databases.
Q4) What is E-Commerce Implementation with respect to
N-Tier Architecture? Explain with Example
E-commerce implementation with respect to N-tier architecture refers to
developing and managing an e-commerce system by dividing the application into
multiple layers or tiers. Each tier performs a specific function such as user
interaction, business processing, and data management. This architecture
improves scalability, security, reliability, and performance of e-commerce
applications.

N-Tier Architecture in E-Commerce

N-tier architecture generally consists of three major layers:

1. Presentation Tier

●​ This is the front-end layer that interacts directly with users.

●​ It displays web pages, product catalogues, shopping carts, and forms.
●​ Provides user-friendly interface and navigation.

Functions

●​ Customer login and registration

●​ Product browsing
●​ Shopping cart and checkout display

Technologies Used

●​ HTML
●​ CSS
●​ JavaScript
●​ React
●​ Angular

2. Application Tier (Business Logic Tier)

●​ This layer processes business operations and application logic.

 ●​ Handles customer requests and communication between presentation and
data layers.

Functions

●​ Order processing
●​ Payment processing
●​ Authentication and authorization
●​ Inventory checking
●​ Business rule implementation

Technologies Used

●​ PHP
●​ Java
●​ Python
●​ [Link]

3. Data Tier

●​ This layer stores and manages all business data securely.

Functions

●​ Store customer information

●​ Maintain inventory records
●​ Store transaction and payment details
●​ Data backup and recovery

Technologies Used

●​ MySQL
●​ Oracle Database
●​ MongoDB
Working of N-Tier Architecture in E-Commerce

1.​ Customers visit the e-commerce website and browses products through
the presentation layer.
2.​ The customer places an order and payment request.
3.​ Application layer processes order details, verifies payment, and checks
inventory.
4.​ The data layer stores customer orders, payment details, and inventory
updates.
5.​ The application layer sends confirmation back to the customer through the
presentation layer.

Example of N-Tier Architecture in E-Commerce

Example: Online Shopping Website like

Amazon India

Presentation Tier

●​ Customer views products, adds items to cart, and places order using
website or mobile app.

Application Tier

●​ Processes order requests, calculates bill amount, verifies payment, and

manages delivery process.

Data Tier

●​ Stores customer data, product details, payment information, and

transaction records.

Advantages of N-Tier Architecture in E-Commerce

 ●​ Better scalability
●​ Improved security
●​ Faster system performance
●​ Easier maintenance and updates
●​ Better data management
●​ High reliability and flexibility
●​ Efficient transaction processing

Q5) What is the Importance and Working of E-Payment

Systems?

B) Write a short note on security in e payment systems

E-payment systems are electronic methods used to transfer money online for
purchasing goods and services. They enable secure, fast, and convenient online
transactions between customers and businesses.

Importance of E-Payment Systems

1. Faster Transactions

●​ Payments are processed quickly in real time.

●​ Reduces waiting time for customers and businesses.

2. Convenience

●​ Customers can make payments anytime and anywhere.

●​ Supports 24×7 online transactions.

3. Reduced Paperwork

●​ Eliminates the need for cash handling and paper receipts.

●​ Supports paperless business operations.

4. Global Business Support

 ●​ Enables international online transactions.
●​ Helps businesses reach global customers.

5. Improved Customer Satisfaction

●​ Provides easy and smooth payment experience.

●​ Increases customer trust and convenience.

6. Secure Transactions

●​ Uses encryption and authentication for secure payments.

●​ Reduces risks of fraud and theft.

7. Better Business Efficiency

●​ Automates payment processing and record management.

●​ Reduces operational cost and manual errors.

Working of E-Payment Systems

Step 1: Product Selection

●​ Customer selects products or services on an e-commerce website.

Step 2: Payment Information Entry

●​ Customer enters payment details such as card information or UPI ID.

Step 3: Encryption and Payment Gateway Processing

●​ Payment gateway encrypts customer information for security.

●​ Payment request is sent to the bank or payment processor.

Step 4: Verification and Authorization

●​ Bank verifies account balance and transaction details.

●​ Transaction is approved or rejected.
Step 5: Payment Confirmation

●​ Confirmation message is sent to customer and merchant.

●​ Order processing begins after successful payment.

Examples of E-Payment Systems

●​ UPI
●​ Debit cards
●​ Credit cards
●​ Net banking
●​ Mobile wallets such as Google Pay and Paytm

B) Note on Security in E-Payment Systems

Security in E-Payment Systems

Security in e-payment systems refers to protecting online financial transactions

and customer information from fraud, unauthorized access, and cyber attacks.

Security Measures in E-Payment Systems

1. Encryption

●​ Converts payment information into secure coded format.

2. SSL Certificates

●​ Secures communication between customer and website.

3. Authentication

●​ Verifies identity using passwords, OTPs, and biometric verification.

4. Firewalls

●​ Protect systems from hackers and unauthorized access.

5. Digital Signatures

●​ Verify authenticity and integrity of transactions.

6. Secure Payment Gateways

●​ Process online payments securely.

Importance of Security in E-Payment Systems

●​ Protects customer financial information

●​ Prevents fraud and cyber crimes
●​ Increases customer trust
●​ Ensures safe online transactions

Working of Secure E-Payment System

1.​ Customer enters payment details.

2.​ Payment gateway encrypts information.
3.​ Bank verifies transaction details.
4.​ Transaction is approved or rejected.
5.​ Confirmation is sent to customer and merchant.
Q6) What is Digital Content and Types of Digital Content
used in E-Publishing?
Digital content refers to information stored, published, or distributed in digital
format using electronic devices and internet technologies. It is widely used in
e-publishing platforms such as e-books, websites, online magazines, and digital
newspapers.

Types of Digital Content used in E-Publishing

1. Text Content

●​ Includes articles, blogs, e-books, and online documents.

●​ Most commonly used digital content.

Example

Online newspapers and e-books.

2. Image Content

●​ Includes photographs, graphics, illustrations, and infographics.

●​ Improves visual appearance and understanding.

Example

Digital magazines and image galleries.

3. Audio Content

●​ Includes music, podcasts, interviews, and voice recordings.

●​ Supports audio learning and entertainment.

Example

Online podcasts and audiobooks.

4. Video Content

●​ Includes tutorials, webinars, advertisements, and streaming videos.

●​ Provides interactive and engaging communication.

Example

Educational videos and online advertisements.

5. Animation and Multimedia Content

●​ Includes animations, interactive graphics, and multimedia presentations.

●​ Enhances user interaction and engagement.

Example

Interactive advertisements and animated learning modules.

Q7) List Different Features of E-Publishing

E-publishing refers to publishing digital content electronically through internet
technologies and digital media.

Features of E-Publishing

1. Global Accessibility

●​ Content can be accessed from anywhere in the world through the internet.

2. Low Publishing Cost

●​ Reduces printing, storage, and distribution expenses.

3. Fast Distribution

●​ Digital content can be published and shared instantly.

4. Easy Content Updates

●​ Information can be edited and updated quickly.

5. Multimedia Support

●​ Supports text, images, audio, video, and animations.

6. Interactive Content

●​ Allows hyperlinks, search features, and user interaction.

7. Environment Friendly

●​ Reduces paper usage and printing waste.

8. 24×7 Availability

●​ Content is available anytime for users.

9. Large Storage Capacity

●​ Large amounts of digital information can be stored easily.

10. Better Search and Navigation

●​ Users can quickly search and access required information.

Examples of E-Publishing

●​ E-books
●​ Online newspapers
●​ Digital journals
●​ Online magazines
Q8)Explain online marketing types with relevant examples.
Online marketing, also known as digital marketing, refers to promoting products
and services through internet technologies and digital platforms. It helps
businesses reach global customers, increase brand awareness, and improve
sales.

Types of Online Marketing with Examples

1. Search Engine Optimization (SEO)

●​ SEO improves website ranking on search engines like Google.

●​ Helps increase organic website traffic.

Example

A clothing website optimizing keywords so it appears on the first page of Google

search results.

2. Search Engine Marketing (SEM)

●​ Uses paid advertisements on search engines.

●​ Helps businesses quickly reach targeted audiences.

Example

Google Ads displayed when users search for “best smartphones”.

3. Social Media Marketing

●​ Promotes products and services through social media platforms.

●​ Helps increase customer interaction and brand awareness.
Example

A fashion brand promoting products on Instagram and Facebook.

4. Email Marketing

●​ Uses emails to promote products, offers, and updates.

●​ Helps maintain communication with customers.

Example

An online shopping website sending discount offers through email newsletters.

5. Content Marketing

●​ Uses blogs, articles, videos, and educational content for promotion.

●​ Helps attract and engage customers.

Example

A technology company publishing blogs and tutorials about its products.

6. Affiliate Marketing

●​ Third parties promote products and earn commission on sales.

●​ Expands business reach through partners and influencers.

Example

A YouTuber sharing affiliate links for electronic products.

7. Influencer Marketing
 ●​ Businesses collaborate with influencers to promote products.
●​ Helps attract targeted audiences.

Example

Instagram influencers promoting skincare products.

8. Mobile Marketing

●​ Marketing through smartphones and mobile applications.

●​ Includes SMS marketing and app-based advertisements.

Example

Shopping apps sending promotional notifications to users.

9. Video Marketing

●​ Uses videos for advertising and customer engagement.

●​ Improves product understanding and audience interaction.

Example

Product advertisements and tutorials on YouTube.

10. Pay-Per-Click (PPC) Advertising

●​ Businesses pay only when users click advertisements.

●​ Helps generate targeted website traffic.

Example

Sponsored advertisements on Google and Facebook.

Benefits of Online Marketing

 ●​ Global market reach
●​ Cost-effective advertising
●​ Faster communication
●​ Better customer targeting
●​ Real-time performance tracking
●​ Increased customer engagement
●​ Improved sales and brand awareness

Q9)What are the Different Searching Techniques and how are

they useful to increase Business on the Internet?
Searching techniques are methods used to find relevant information, websites,
products, and services on the internet efficiently. Businesses use these
techniques to improve online visibility, attract customers, and increase sales.

Different Searching Techniques

1. Keyword Searching

●​ Uses specific words or phrases to search information on search engines.

●​ Helps users find relevant websites quickly.

Example

Searching “best online shopping website”.

2. Boolean Searching

●​ Uses words like AND, OR, and NOT to refine search results.
●​ Helps obtain more accurate information.

Example

“laptops AND accessories”

3. Phrase Searching

●​ Searches exact phrases using quotation marks.

●​ Provides precise search results.

Example

“digital marketing services”

4. Wildcard Searching

●​ Uses symbols such as * to search variations of words.

●​ Helps find related terms and information.

Example

“market*” may show marketing, markets, marketplace.

5. Advanced Searching

●​ Uses filters such as date, location, file type, and language.

●​ Helps users get targeted search results.

Example

Searching PDFs or recent articles only.

6. Meta Search Techniques

●​ Search engines analyze meta tags and descriptions of websites.

●​ Helps improve website visibility in search engines.

Example
Using proper website descriptions and keywords.

7. Search Engine Optimization (SEO)

●​ Optimizes websites to improve ranking in search engine results.

●​ Increases website traffic organically.

Example

Using relevant keywords and quality content on websites.

8. Directory Searching

●​ Searches websites through categorized web directories.

●​ Helps users find businesses according to categories.

Example

Business listings in online directories.

How Searching Techniques help to Increase Business on the Internet

1. Improves Online Visibility

●​ Businesses appear more frequently in search results.

●​ Increases brand awareness.

2. Attracts More Customers

●​ Customers can easily find products and services online.

●​ Increases website traffic.

3. Increases Sales and Revenue

 ●​ Better visibility leads to more customer engagement and purchases.

4. Supports Digital Marketing

●​ Improves effectiveness of online marketing campaigns.

5. Better Customer Targeting

●​ Businesses can target specific customer groups using keywords and SEO.

6. Enhances Customer Experience

●​ Customers get accurate and relevant information quickly.

7. Competitive Advantage

●​ Businesses with better search rankings gain advantage over competitors.

Example

An online clothing store uses SEO, keyword searching, and social media
marketing to appear on Google search results. More customers visit the website,
resulting in increased online sales and business growth.
Q10) What is Customer Lifecycle? How is it implemented in
E-CRM?

Customer Lifecycle

Customer lifecycle refers to the different stages through which a customer

interacts with a business, from first contact to long-term loyalty. E-CRM
(Electronic Customer Relationship Management) uses digital technologies to
manage and improve customer relationships.

Stages of Customer Lifecycle

1. Customer Acquisition

●​ Attracting new customers through online marketing and advertisements.

2. Customer Engagement

●​ Interacting with customers and providing information and support.

3. Customer Conversion

●​ Converting potential customers into actual buyers.

4. Customer Retention

●​ Maintaining long-term relationships with customers.

5. Customer Loyalty

●​ Encouraging repeat purchases and customer referrals.

Implementation of Customer Lifecycle in E-CRM

1. Customer Data Collection

●​ Collect customer information through websites and online transactions.

2. Customer Analysis

●​ Analyze customer preferences and purchase behavior.

3. Personalized Communication

●​ Send personalized emails, offers, and recommendations.

4. Online Customer Support

●​ Provide support through chat, email, and helpdesk systems.

5. Feedback Management

●​ Collect customer feedback to improve services.

Benefits of E-CRM

●​ Better customer satisfaction

●​ Improved customer retention
●​ Increased customer loyalty
●​ Better communication and service
Q11) Explain Major Trends in E-SCM along with its
Components and Architecture

E-SCM (Electronic Supply Chain Management)

E-SCM refers to the use of internet technologies and digital systems to manage
supply chain activities electronically. It improves coordination among suppliers,
manufacturers, distributors, and customers.

Major Trends in E-SCM

1. Real-Time Tracking

●​ Tracking inventory and deliveries in real time.

2. Cloud-Based Supply Chain Systems

●​ Managing supply chain information using cloud computing.

3. Automation and AI Integration

●​ Automating inventory management and forecasting demand.

4. Data Analytics and BI Tools

●​ Using analytics for better planning and decision making.

5. Mobile Supply Chain Management

●​ Managing supply chain operations through mobile devices.

6. Green Supply Chain Management

●​ Using environmentally friendly supply chain practices.

Components of E-SCM

1. Suppliers

●​ Provide raw materials and products.

2. Manufacturers

●​ Produce goods and services.

3. Warehouses

●​ Store inventory and products.

4. Distribution Systems

●​ Manage transportation and delivery.

5. Customers

●​ Receive final products and services.

Architecture of E-SCM

1. Information Flow System

●​ Shares information among supply chain participants.

2. Inventory Management System

●​ Tracks inventory and stock movement.

3. Logistics Management System

●​ Handles transportation and delivery operations.

4. Communication Network

●​ Connects suppliers, manufacturers, distributors, and customers

electronically.

Benefits of E-SCM

●​ Reduced inventory cost

●​ Faster delivery
●​ Better coordination
●​ Improved supply chain efficiency

Q12) DIFFERENCES

a) Difference between SPM and ESE

SPM ESE

SPM stands for Strategic Performance ESE stands for Enterprise System
Management Engineering

Focuses on business performance and Focuses on designing enterprise

goals systems

Used for planning and performance Used for system development and
measurement integration

Helps improve organizational Helps improve technical efficiency

productivity
Business-oriented approach Technology-oriented approach

Measures KPIs and business success Designs and manages enterprise

software systems

Used by managers and business Used by software engineers and

analysts system architects

Example: Performance dashboard Example: ERP system development

systems

b) Difference between Commerce and E-Commerce

Commerce E-Commerce

Traditional buying and selling of Online buying and selling using

goods and services internet technologies

Conducted in physical markets Conducted through websites and

applications

Requires physical presence No physical presence required

Uses cash and traditional payments Uses digital payment systems

Limited geographical reach Global market reach

Slower communication and Faster communication and

transactions transactions

More paperwork involved Paperless transactions

Example: Retail shop Example: Amazon India

c) Difference between CEM and E-CRM

CEM E-CRM

CEM stands for Customer E-CRM stands for Electronic Customer

Experience Management Relationship Management

Focuses on customer experience Focuses on customer relationship

management

Improves customer satisfaction Manages customer data and

and interaction communication

Customer-centric approach Technology-centric approach

Measures customer emotions Uses software and databases for
and feedback customer management

Helps improve brand experience Helps improve customer retention and

loyalty

Focuses on entire customer Focuses on online customer interactions

journey

Example: Personalized shopping Example: Online CRM software

experience

d) Difference between Marketing and Digital Marketing

Marketing Digital Marketing

Traditional method of promoting Online promotion using internet

products and services technologies

Uses TV, radio, newspapers, and Uses websites, social media, emails,
banners and search engines

Expensive advertising methods Cost-effective advertising methods

Limited audience targeting Targeted audience marketing

Difficult to measure performance Easy performance tracking and

analytics

Slower communication Real-time communication

Limited global reach Global market reach

Example: Newspaper advertisement Example: Instagram advertisement

e) Difference between E-Business and Business

E-Business Business

Conducted using internet and digital Conducted through traditional

technologies methods

Includes online transactions and Mainly offline operations

communication

Uses automated business processes Uses manual processes

Faster communication and operations Slower communication and
operations

Global market reach Limited geographical reach

Uses digital payment systems Uses cash and physical

payments

Includes online customer support and Limited digital interaction

services

Example: Online banking system Example: Traditional bank

branch

f) Difference between E-Commerce and E-Business

E-Commerce E-Business

Focuses mainly on online buying Covers all online business activities

and selling

Includes online transactions only Includes SCM, CRM, marketing,

communication, etc.
Narrow concept Broader concept

Customer-oriented Organization-oriented

Main objective is online sales Main objective is complete business

management

Uses websites and online stores Uses internet technologies in all business
operations

Part of e-business E-commerce is a subset of e-business

Example: Online shopping Example: Complete online business

website management system
PORTERS MODEL NOTES

Q1. Write a short note on Porters 5 Forces model . With

Advantages and Criticism.
Definition:
Porter’s Five Forces Model (1980) is a framework used to analyse the
competitive intensity and attractiveness of an industry. It helps organisations
understand the forces affecting profitability and competitive advantage.

Porter’s Five Forces Model is used to analyse the competitive intensity and
profitability of an industry by examining five key forces that influence business
performance.

It is especially important in a globalised competitive environment to anticipate

competition and improve strategy.

1. Bargaining Power of Suppliers

●​ Suppliers can sell at higher prices or lower quality, reducing firm profits
●​ Strong when:
○​ Few suppliers and many buyers
○​ Suppliers are large or dominant
○​ Suppliers control scarce resources
○​ High switching cost of raw materials
●​ Increases cost of production and reduces profitability
●​ Example: Industries dependent on limited suppliers (e.g., fuel, aircraft
manufacturers)

2. Bargaining Power of Buyers

●​ Buyers can demand lower prices or higher quality
●​ Leads to:
○​ Reduced revenues
○​ Increased production costs
●​ Strong when:
○​ Bulk purchasing
○​ Standardised products
○​ Few buyers, many sellers
○​ Low switching cost
○​ High price sensitivity
○​ Availability of substitutes
●​ Forces firms to focus on quality improvement and competitive pricing

3. Competitive Rivalry

●​ Refers to competition among existing firms

●​ High rivalry leads to:
○​ Increased pressure, time and costs
○​ Lower profits
●​ Intense when:
○​ Many competitors
○​ Low product differentiation
○​ High exit barriers
○​ Slow industry growth
○​ Low customer loyalty
●​ Positive impact: encourages innovation, lower prices, and economic
growth

4. Threat of Substitutes

●​ Substitutes are alternative products fulfilling similar needs

●​ Limits profit by placing a ceiling on prices
●​ High when:
○​ Low switching cost
 ○​ Better price or quality alternatives available
●​ Example: Switching from one service/product to another easily
●​ Forces firms to innovate and improve value proposition

5. Threat of New Entrants

●​ New entrants increase competition and reduce profitability

●​ High when:
○​ Low capital requirements
○​ Low customer loyalty
○​ Lack of brand reputation
○​ Minimal government regulation
○​ Easy access to economies of scale
○​ Products are similar
●​ Barriers to entry:
○​ Brand loyalty (customers attached over time)
○​ High capital requirements (R&D, infrastructure, marketing,
workforce)
●​ Firms innovate to create strong entry barriers and protect market share

Advantages of Porter’s Five Forces

●​ Helps analyse industry structure and competitiveness

●​ Assists in identifying profit potential
●​ Useful for strategic planning and decision-making
●​ Provides a clear framework to understand market dynamics
●​ Helps anticipate future competition and threats

Criticism of Porter’s Five Forces

●​ Does not help firms build unique sustainable advantages

●​ Focuses more on industry attractiveness than firm strategy
 ●​ Overemphasises competition, ignores cooperation
●​ Based on a snapshot in time (not dynamic)
●​ Cannot be generalised across all industries

Q2. How Porter's five forces model is useful to have innovation in

the new business.

Meaning

●​ Porter’s Five Forces helps analyze industry competition and profitability

●​ It guides new businesses to identify opportunities for innovation and
differentiation

How it helps in Innovation

1. Supplier Power → Innovation in sourcing and cost

●​ If suppliers are strong, businesses innovate by:

○​ Finding alternative suppliers
○​ Using new materials or technologies
○​ Backward integration (producing inputs themselves)
●​ Leads to cost innovation and supply chain efficiency

2. Buyer Power → Innovation in value and experience

●​ Strong buyers demand better price and quality

●​ Businesses innovate by:
○​ Improving product features
○​ Offering personalization and customization
○​ Enhancing customer experience (UX, service, speed)
●​ Drives customer-centric innovation
3. Competitive Rivalry → Innovation for differentiation

●​ High competition forces firms to stand out

●​ Encourages:
○​ Unique product design
○​ Branding and positioning
○​ New business models (subscription, freemium, etc.)
●​ Leads to continuous innovation to gain competitive advantage

4. Threat of Substitutes → Innovation in uniqueness

●​ When substitutes exist, firms must:

○​ Add unique features
○​ Improve quality or convenience
○​ Create switching barriers (loyalty programs, ecosystem)
●​ Encourages product and service innovation

5. Threat of New Entrants → Innovation as a barrier

●​ To prevent new competitors, firms innovate by:

○​ Building strong brand identity
○​ Developing proprietary technology
○​ Achieving economies of scale
●​ Innovation acts as a barrier to entry
Q3 How Porters five forces model is useful to have innovation in
the new business.
Porter’s Five Forces Model helps a new business understand the competitive
intensity and attractiveness of a market, which allows firms to identify
opportunities for innovation and gain competitive advantage.

It reveals the underlying causes of profitability and competition, enabling

businesses to anticipate changes and innovate accordingly.

Use of Each Force in Driving Innovation

1. Competitive Rivalry

Competitive rivalry increases pressure, time and cost, forcing firms to innovate
to survive.

●​ Encourages product differentiation and research & development

●​ Leads to improved features, pricing strategies and value creation

Thus, innovation becomes necessary to stand out in a highly competitive market.

2. Threat of New Entrants

New entrants intensify competition by gaining market share.

●​ Firms innovate by building brand loyalty, which acts as a barrier to entry

●​ High capital requirements (R&D, infrastructure, advertising) push firms
to adopt innovative strategies

Innovation helps create strong entry barriers and protects market position.
3. Bargaining Power of Buyers

Powerful buyers can drive down prices and increase quality demands.

●​ Businesses innovate to provide better quality products at competitive

prices
●​ Focus on customisation and value addition

This leads to customer-oriented innovation and improved offerings.

4. Bargaining Power of Suppliers

Suppliers can influence prices and costs.

●​ Firms innovate by improving supply chain processes

●​ Develop alternatives or efficient sourcing methods

This results in innovation in operations and cost management.

5. Threat of Substitutes

Substitutes limit profit by placing a ceiling on prices.

●​ Firms innovate by improving product quality, features and uniqueness

●​ Focus on reducing switching by increasing value

This drives continuous product innovation.

Creative Insight

Porter’s model does not just analyse competition; it acts as an innovation map:

●​ It shows where pressure exists

●​ Pressure highlights gaps
●​ Gaps create opportunities for innovation
Thus, innovation is not random but strategically guided by competitive forces.

Q3 How Porters five forces model is useful to have innovation in

the new business.​
Porter’s Five Forces Model is widely used in the aviation industry to analyse
competition, profitability and strategic positioning. It helps airlines
understand market pressures and adopt innovative and competitive strategies.

Application in Aviation Industry

1. Competitive Rivalry (Very High)

●​ The aviation industry has many competitors with similar services

●​ Airlines compete on:
○​ Ticket prices
○​ Service quality
○​ Routes and frequency
●​ Example: Intense competition between low-cost carriers and full-service
airlines

Application:​
Airlines innovate through cost leadership (low fares) or differentiation
(premium services) to survive.

2. Threat of New Entrants (Moderate to Low)

●​ High capital requirements (aircraft, infrastructure, staff)

●​ Strong brand loyalty and regulations act as barriers

Application:​
Existing airlines invest in technology, branding and customer loyalty
programs to maintain entry barriers.
3. Bargaining Power of Buyers (High)

●​ Customers can easily compare ticket prices online

●​ Low switching cost between airlines

Application:​
Airlines innovate by offering:

●​ Discounts and dynamic pricing

●​ Better customer experience
●​ Loyalty programs

This reduces buyer power and increases retention.

4. Bargaining Power of Suppliers (High)

●​ Few aircraft manufacturers (e.g., Boeing, Airbus)

●​ High fuel dependency

Application:​
Airlines improve efficiency by:

●​ Optimising fuel usage

●​ Negotiating long-term contracts
●​ Using cost-efficient aircraft

Supplier power directly affects profitability.

5. Threat of Substitutes (Moderate)

●​ Alternatives include:
○​ Trains
○​ Buses
○​ Video conferencing (for business travel)

Application:​
Airlines innovate by:
 ●​ Reducing travel time
●​ Improving convenience and connectivity
●​ Offering competitive pricing

This helps reduce the impact of substitutes.

Real Case Example: IndiGo (India)

●​ IndiGo follows a low-cost leadership strategy

●​ Application of Five Forces:
○​ Rivalry: Competes with airlines by offering lowest fares
○​ Suppliers: Uses a single aircraft type (Airbus) to reduce costs
○​ Buyers: Attracts price-sensitive customers with affordable pricing
○​ New Entrants: Strong brand and efficiency create barriers
○​ Substitutes: Focuses on punctuality and connectivity to remain
preferred

Result:​
IndiGo became one of the most profitable and largest airlines in India by
effectively managing competitive forces.
Q4 Write a Short note on Porters Generic Strategies.

Porter’s Generic Strategies

Definition:​
Porter’s Generic Strategies are competitive strategies that organisations adopt to
survive and succeed in a competitive market by gaining competitive
advantage through better value, price, or benefits.

Types of Generic Strategies

1. Cost Leadership

●​ Focuses on achieving lowest cost in the industry

●​ Aim: Serve the mass market
●​ Techniques:
 ○​ Mass production
○​ Mass distribution
○​ Economies of scale
○​ Use of technology
○​ Efficient product design

Outcome: Competitive advantage through lower prices and higher efficiency

2. Differentiation

●​ Focuses on offering a unique product or service

●​ Creates a Unique Selling Proposition (USP)
●​ Tailored to specific customer needs
●​ Techniques:
○​ Extra features
○​ High quality
○​ Branding and pricing strategy

Outcome: Competitive advantage through uniqueness and customer value

3. Focus / Differentiation Focus

●​ Targets a specific niche market or segment

●​ Can be:
○​ Cost focus (low cost in niche)
○​ Differentiation focus (unique offering in niche)
●​ Aim: Gain advantage through effectiveness rather than efficiency
●​ Techniques:
○​ Clear differentiation from competitors
○​ Strong understanding of target customers
○​ Niche positioning

Outcome: Competitive advantage in a specific market segment

Stuck in the Middle

●​ Occurs when a firm tries to adopt all strategies simultaneously

●​ Leads to:
○​ Lack of clarity
○​ Weak competitive position

Criticism

●​ Too general and simplistic

●​ Limited applicability in real markets
●​ Not suitable for small firms or fragmented markets
●​ Ignores flexibility and dynamic strategies
●​ Suggests need for a resource-based approach
 ELECTRONIC DATA INTERCHANGE

Q1. What do you mean by EDI? Explain interface usage of EDI

with respect to customer and supplier interaction.

Definition of EDI

EDI (Electronic Data Interchange) is the exchange of electronic data between

companies using precisely defined transactions. It uses a set of hardware,
software and standards to transfer business documents electronically.
EDI Standards

●​ Compatible hardware and Software

●​ Agreed upon Electronic form Format
●​ Codes: These define currencies, countries, dates, and other data types
used in business transactions.
●​ Identification values: Unique identifiers used to define sender, receiver, and
document contents.
●​ Message design: The overall structure of each document, including fields,
segments, and hierarchy.
●​ Syntax: The specific rules that govern formatting, such as character usage
and field order.

Interface Usage of EDI between Customer and Supplier

EDI creates an electronic communication interface between customers and

suppliers, reducing paperwork and manual operations.

Process Flow

Step 1: Proposal

The supplier sends a business proposal, quotation or purchase-related

information electronically to the purchasing organisation through the EDI system.​
This eliminates manual paperwork and speeds up communication.

Step 2: Signed Contract

The purchasing organisation reviews and approves the proposal electronically.​

The contract or agreement is digitally signed and exchanged through the network
between both parties.

Step 3: Shipping Documents and Invoice

After manufacturing and packaging the goods, the supplier:

 ●​ Ships the products
●​ Generates electronic shipping documents and invoice
●​ Uses barcodes to record shipped items

These documents are automatically transmitted to the purchasing organisation

using EDI.

Step 4: Approve Payment

The purchasing organisation receives the goods and scans barcodes to verify the
delivered items with invoice details.​
After verification, payment approval is electronically sent to the bank.

Step 5: Electronic Funds Transfer (EFT)

The purchasing organisation’s bank transfers payment electronically to the

supplier’s bank account using EFT (Electronic Funds Transfer).​
This enables quick and secure financial transactions.

Step 6: Notice of Deposit

The supplier’s bank sends a notification confirming that the payment has been
deposited successfully.​
The supplier receives confirmation of payment completion electronically.
 Overall Flow

Proposal → Contract Approval → Shipment & Invoice → Payment Approval →

Electronic Fund Transfer → Deposit Confirmation

Result of EDI Process

●​ Faster communication
●​ Reduced paperwork
●​ Better accuracy
●​ Improved supplier–customer coordination
●​ Reduced operational time and cost

Benefits in Customer–Supplier Interaction

●​ Faster communication
●​ Reduced paperwork
●​ Improved accuracy
●​ Real-time information exchange
●​ Faster order processing
●​ Better inventory management
●​ Reduced operational cost

IMPORTANCE

●​ Ensures timely and reliable exchange of business data

●​ Helps organizations respond quickly to changing market demands
●​ Supports standardized communication through common EDI guidelines
and formats
●​ Enables smooth sharing of information across multiple departments and
units
●​ Reduces manual errors and improves accuracy of business transactions
●​ Increases efficiency and speed in supply chain and business operations
●​ Improves reliability due to advancements in information technology
●​ Facilitates seamless communication between global business partners
 ●​ Supports globalization by connecting organizations worldwide
●​ Enhances decision-making with faster access to accurate information

Q2) List Different Tags of EDI

●​ Purchase Order
●​ Invoice
●​ Shipment Notice
●​ Payment Order
●​ Product Catalogue
●​ Delivery Schedule
●​ Order Confirmation
●​ Inventory Report
●​ Tax Information
●​ Electronic Funds Transfer (EFT)
Q3) Draw EDI Block Diagram showing Input, Process and Output

Q4) What is EDI and how has it helped in improving customer

interaction?
EDI is the electronic exchange of business documents between organisations
through standardised digital systems.

Improvement in Customer Interaction

●​ Faster order confirmation

●​ Quick response to customer queries
●​ Accurate transaction processing
●​ Better tracking of shipments
 ●​ Secure and reliable communication
●​ Improved customer satisfaction through timely services

Q5) Justify how EDI is useful for reducing the time of operations
between customer and supplier.
EDI reduces operational time because all business documents such as purchase
orders, invoices, shipment notices and payment approvals are transferred
electronically without manual paperwork.

How EDI Saves Time

●​ Eliminates manual data entry

●​ Faster order processing
●​ Instant document transmission
●​ Automated invoicing and payments
●​ Reduces delays in communication
●​ Faster inventory and shipment tracking

●​ The paper usage reduced: The expense of storing, printing, recycling,

reduces up to the maximum amount due to the EDI.
●​ Improved quality of Data: The data entry errors are reduced due to EDI.
●​ Speed Increases: The best advantage is the increase in the speed of the
data interchange. With everything going online, the speed of the
information transfer increases exponentially.
●​ Security: By following the Protocols and the standard rules, the security of
all the important documents is always secure and safe.
●​ Information accuracy: Since the information exchanged is based on
standards agreed by the sender and receiver both, the correct information
is always transferred regardless of where they belong to.
●​ Less Cost: With very less errors, fast response time, every thing
becoming automated, and no use of paper, the cost automatically reduces.