E-COMMERCE & M-COMMERCE

Module 1: E-Business Framework: Definition of E-Business, Origin of E-Business, History of the Internet,
E-Business Opportunities for Businesses, Working of E-Business, E-Business Vs the Traditional Business
Mechanism, Advantages of E-Business, Disadvantages of E-Business, Main Goals of E-Business.

1. Definition of E-Business:
• Definition:
o E-business (electronic business) refers to the use of the internet and digital technologies to conduct
and manage all aspects of a business.
o It encompasses not just online sales (e-commerce), but also internal processes like supply chain
management, customer relationship management, and employee collaboration.
o Essentially, it's about leveraging digital tools to improve efficiency, reach, and overall business
operations.
2. Origin of E-Business:
• Origin:
o The roots of e-business are intertwined with the development of computer networks and the
internet.
o Early forms of electronic data interchange (EDI) in the 1960s and 1970s laid the foundation for
business-to-business (B2B) electronic transactions.
o However, the widespread adoption of e-business truly began with the commercialization of the
internet in the 1990s.
3. History of the Internet:
• History:
o The internet's origins can be traced back to ARPANET (Advanced Research Projects Agency
Network), a project funded by the U.S. Department of Defense in the late 1960s.
o ARPANET was designed to create a decentralized network that could withstand disruptions.
o The development of TCP/IP (Transmission Control Protocol/Internet Protocol) in the 1970s
provided a standardized way for computers to communicate over the network.
o The World Wide Web, created by Tim Berners-Lee in the late 1980s, made the internet more
accessible and user-friendly, leading to its rapid growth.
o The 1990's saw the commercialization of the internet, and the birth of modern day e-business.
4. E-Business Opportunities for Businesses:
• Opportunities:
o Expanded Market Reach: E-business enables businesses to reach customers globally,
transcending geographical limitations.
o Reduced Costs: Online operations can reduce overhead costs associated with physical stores,
inventory management, and customer service.
o Improved Customer Service: Online channels provide opportunities for personalized customer
interactions and 24/7 support.
 E-COMMERCE & M-COMMERCE
o Data-Driven Decision Making: E-business generates valuable data that can be used to analyze
customer behavior and optimize business strategies.
o New Revenue Streams: E-business facilitates the creation of new products and services, such as
digital downloads and online subscriptions.
o Supply chain optimization: E-business can help automate and optimize the supply chain.
5. Working of E-Business:
• Working:
o E-business relies on a combination of technologies, including websites, databases, and network
infrastructure.
o Customers interact with businesses through online platforms, such as websites and mobile apps.
o Transactions are processed electronically, and data is stored in databases.
o Communication between businesses and customers is facilitated through email, chat, and social
media.
o Secure payment gateways are used to process financial transactions.
o Cloud services are often used to store data, and host websites.
6. E-Business Vs the Traditional Business Mechanism:
• Differences:
o Market Reach: E-business has a global reach, while traditional business is limited by
geographical location.
o Operational Hours: E-business operates 24/7, while traditional business has fixed hours.
o Customer Interaction: E-business relies on digital communication, while traditional business
involves face-to-face interaction.
o Overhead Costs: E-business typically has lower overhead costs than traditional business.
o Data Analysis: E-business generates vast amounts of data that can be used for analysis, while
traditional business relies on manual data collection.
7. Advantages of E-Business:
• Advantages:
o Global market access. o Data-driven decision making.
o Reduced operational costs. o Increased efficiency.
o Improved customer service. o Increased speed of transactions.
8. Disadvantages of E-Business:
• Disadvantages:
o Security risks (cyberattacks, data o Shipping and logistical challenges.
breaches).
o Increased competition.
o Lack of personal interaction.
o Initial setup costs.
o Dependency on technology.
 E-COMMERCE & M-COMMERCE
9. Main Goals of E-Business:
• Goals:
o Increase revenue and profitability.
o Improve customer satisfaction and loyalty.
o Enhance operational efficiency.
o Expand market share.
o Gain a competitive advantage.
o Improve communication with business partners.
o Automate business processes.
 E-COMMERCE & M-COMMERCE
Module 2: Network Infrastructure for E-Commerce I: Local Area Network (LAN), Ethernet: IEEE 802.3:
Local Area Network (LAN) Protocols, Wide Area Network (WAN), The Internet, TCP/IP Reference Model,
Domain Names, Hyper Text Markup Language (HTML), Simple Exercises in HTML.

1. Local Area Network (LAN):

• Definition: A LAN is a network that connects computers and devices within a limited geographical area,
such as a home, office, or building.
• Purpose: To enable resource sharing (files, printers), communication, and data exchange among
connected devices.
• Example:
o A small office with several computers connected to a central switch or router, allowing employees
to share files, access a shared printer, and connect to the internet.
o A home network with a Wi-Fi router connecting laptops, smartphones, and smart TVs.
2. Ethernet: IEEE 802.3: Local Area Network (LAN) Protocols:
• Definition: Ethernet is a widely used networking technology for LANs. IEEE 802.3 is a set of standards
that define how Ethernet works, including physical and data link layer protocols.
• Purpose: To define the rules for transmitting data over a LAN, ensuring reliable communication.
• Example:
o When you connect a computer to a network switch using an Ethernet cable, the IEEE 802.3
standards dictate how the data is formatted, transmitted, and received.
o The CSMA/CD (Carrier Sense Multiple Access with Collision Detection) protocol (though less
common now) within 802.3, was responsible for managing collisions on shared ethernet lines.
3. Wide Area Network (WAN):
• Definition: A WAN is a network that connects computers and devices over a large geographical area, such
as cities, states, or countries.
• Purpose: To enable communication and data exchange between geographically dispersed locations.
• Example:
o A company with offices in different cities connected through a WAN to share data and
applications.
o The internet itself is a massive WAN, connecting millions of networks worldwide.
o A company using a MPLS(Multiprotocol Label Switching) connection to connect distant offices.
4. The Internet:
• Definition: The internet is a global network of interconnected computer networks that use the TCP/IP
protocol suite to communicate.
• Purpose: To provide a worldwide platform for information sharing, communication, and e-commerce.
• Example:
o Browsing websites, sending emails, streaming videos, and conducting online transactions are all
examples of using the internet.
 E-COMMERCE & M-COMMERCE
5. TCP/IP Reference Model:
• Definition: The TCP/IP model is a suite of communication protocols used to interconnect network devices
on the internet. It consists of four layers: Application, Transport, Internet, and Network Access.
• Purpose: To provide a standardized way for computers to communicate over the internet.
• Example:
o When you send an email, the Application layer handles the email protocol (SMTP). The Transport
layer (TCP) ensures reliable delivery. The Internet layer (IP) routes the data packets to the
destination. The Network Access layer handles the physical transmission of data.
6. Domain Names:
• Definition: Domain names are human-readable addresses used to identify websites and other internet
resources.
• Purpose: To provide an easy-to-remember alternative to numerical IP addresses.
• Example:
o "[Link]" is a domain name that corresponds to a specific IP address.
o "[Link]" is another very popular domain name.
7. Hyper Text Markup Language (HTML):
• Definition: HTML is the standard markup language for creating web pages.
• Purpose: To define the structure and content of web pages.
• Example:
o The following HTML code creates a simple web page with a heading and a paragraph:
HTML
<!DOCTYPE html>
<html>
<head>
<title>My Web Page</title>
</head>
<body>
<h1>Welcome to my page!</h1>
<p>This is a sample paragraph.</p>
</body>
</html>
 E-COMMERCE & M-COMMERCE
8. Simple Exercises in HTML:
• Creating a basic web page:
o Write HTML code to create a page with a title, heading, paragraph, and an image.
• Creating a list:
o Write HTML code to create an ordered or unordered list of items.
• Creating a hyperlink:
o Write HTML code to create a link to another web page or website.
• Creating a table:
o Write HTML code to create a table that displays data.
• Creating a form:
o Write HTML code to make a simple form that has a text box, and a submit button.
 E-COMMERCE & M-COMMERCE
Module 3: E-Business: Requirements and Architecture: Requirements of E-Business, Functions of E-
Business, E-Business Framework Architecture, I-way or Information Highway. Business Models:
Evolution of Internet Business Models, Business Models in Practice, Business Model: The Six Components.

E-Business: Requirements and Architecture

1. Requirements of E-Business:
• Definition: These are the essential needs for establishing and operating an e-business.
• Examples:
o Reliable Network Infrastructure: High-speed internet, servers, and network security.
o Secure Payment Systems: Payment gateways, encryption, and fraud prevention.
o User-Friendly Website/App: Intuitive interface, mobile responsiveness, and easy navigation.
o E-commerce Platform: Software for managing online sales, inventory, and customer data.
o Logistics and Fulfillment: Shipping, delivery, and returns management.
o Customer Support: Online chat, email, and phone support.
o Data Security and Privacy: Compliance with regulations (GDPR, CCPA).
2. Functions of E-Business:
• Definition: These are the core activities performed by an e-business.
• Examples:
o Online Sales: Product catalog, shopping cart, and checkout process.
o Customer Relationship Management (CRM): Managing customer interactions and data.
o Supply Chain Management (SCM): Inventory control, order fulfillment, and supplier
collaboration.
o Marketing and Advertising: Online campaigns, SEO, and social media marketing.
o Data Analysis and Reporting: Tracking website traffic, sales, and customer behavior.
o Online Communication: Email, chat, and social media engagement.
o Online transaction processing: Securely processing payments.
3. E-Business Framework Architecture:
• Definition: This refers to the structural design of an e-business system, including its components and how
they interact.
• Examples:
o Three-Tier Architecture:
▪ Presentation Tier: User interface (website, app).
▪ Application Tier: Business logic and processing.
▪ Data Tier: Database for storing information.
o Cloud-Based Architecture: Using cloud services for hosting, storage, and applications.
o Microservices Architecture: Breaking down applications into smaller, independent services.
 E-COMMERCE & M-COMMERCE
o Components: Web servers, application servers, database servers, payment gateways, Content
Delivery Networks(CDNs).
4. I-way or Information Highway:
• Definition: This refers to the interconnected network of digital communication systems, primarily the
internet, that facilitates the flow of information.
• Examples:
o The internet itself, enabling global communication and data transfer.
o Broadband networks that provide high-speed internet access.
o Mobile networks that support wireless communication.
o Cloud computing infrastructure that enables data storage and processing.
o Social media platforms that facilitate information sharing.
o E-commerce platforms that allow for online transactions.
Business Models
1. Evolution of Internet Business Models:
• Definition: The progression of how businesses generate revenue online.
• Examples:
o Early Stages: Online catalogs and advertising.
o Dot-Com Boom: Online retail (Amazon), search engines (Google), and online auctions (eBay).
o Web 2.0: Social media (Facebook), user-generated content (YouTube), and SaaS (Salesforce).
o Mobile Commerce: Mobile apps, in-app purchases, and location-based services.
o Modern Era: Subscription services (Netflix), platform economy (Uber), and AI-driven e-
commerce.
2. Business Models in Practice:
• Definition: How businesses apply different models to generate revenue.
• Examples:
o Subscription Model: Netflix (streaming service), Spotify (music streaming).
o Advertising Model: Google (search ads), Facebook (social media ads).
o Marketplace Model: Amazon (online retail marketplace), Airbnb (home-sharing).
o Freemium Model: Dropbox (free basic storage, paid premium features).
o Affiliate Marketing: Amazon Associates (earning commission on product sales).
o E-tailer: An online only retailer.
3. Business Model: The Six Components:
• Definition: The key elements that define how a business creates, delivers, and captures value.
• Examples:
o Value Proposition: What products or services are offered and what problems do they solve?
(Amazon: wide selection, convenience).
 E-COMMERCE & M-COMMERCE
o Customer Segments: Who are the target customers? (Netflix: streaming entertainment
consumers).
o Revenue Streams: How does the business generate income? (Spotify: subscription fees,
advertising).
o Channels: How does the business reach its customers? (Apple: online store, retail stores).
o Customer Relationships: How does the business interact with its customers? (Zappos:
exceptional customer service).
o Key Resources: What assets are needed to operate the business? (Google: data centers,
algorithms).
 E-COMMERCE & M-COMMERCE
Module 4: Security in Electronic Business: Intranet and Extranet Security: Threats and Protection,
Protection Methods, Data and Message Security, Firewalls. Encryption: Cryptography, Encryption,
Digital Signature. Virtual Private Network.

1. Intranet and Extranet Security:

• Intranet Security:
o Definition: Protecting an organization's internal network from unauthorized access and threats.
o Example:
▪ A company implements access controls to restrict employee access to sensitive financial
data on its intranet.
▪ Regularly patching internal servers to prevent malware infections.
• Extranet Security:
o Definition: Protecting an organization's network that is extended to authorized external partners,
suppliers, or customers.
o Example:
▪ A supply chain company uses a secure extranet to allow suppliers to access inventory levels
and order information.
▪ A hospital provides a secure extranet for authorized doctors to access patient records
remotely.
2. Threats and Protection:
• Threats:
o Definition: Potential dangers that can exploit vulnerabilities in systems or data.
o Examples:
▪ Malware: Viruses, worms, ransomware.
▪ Phishing: Deceptive emails or websites to steal credentials.
▪ Data Breaches: Unauthorized access to sensitive data.
▪ DDoS Attacks: Overwhelming servers with traffic.
• Protection:
o Definition: Measures taken to mitigate or eliminate threats.
o Examples:
▪ Installing antivirus software.
▪ Implementing strong passwords and multi-factor authentication.
▪ Regularly backing up data.
▪ Security awareness training for employees.
 E-COMMERCE & M-COMMERCE
3. Protection Methods:
• Definition: Specific techniques and tools used to secure systems and data.
• Examples:
o Access Control: Restricting access to resources based on user roles.
o Intrusion Detection/Prevention Systems (IDS/IPS): Monitoring network traffic for suspicious
activity.
o Security Audits: Regularly assessing systems for vulnerabilities.
o Security Awareness Training: Educating users about security best practices.
4. Data and Message Security:
• Data Security:
o Definition: Protecting data at rest (stored) and in transit (being transferred).
o Example:
▪ Encrypting sensitive files stored on a hard drive.
▪ Using data loss prevention (DLP) software to prevent the unauthorized transfer of sensitive
data.
• Message Security:
o Definition: Protecting the confidentiality, integrity, and authenticity of messages.
o Example:
▪ Using end-to-end encryption for instant messaging.
▪ Using digital signatures to verify the authenticity of an email.
5. Firewalls:
• Definition: A network security system that monitors and controls incoming and outgoing network traffic
based on predefined security rules. 1
• Examples:
o A firewall blocking all incoming traffic on port 22 (SSH) from unauthorized IP addresses.
o A firewall blocking all outgoing traffic to known malicious websites.
o Web Application Firewall (WAF) filtering malicious HTTP requests.
6. Encryption:
• Cryptography:
o Definition: The science of secure communication.
o Example:
▪ Using the Advanced Encryption Standard (AES) algorithm to encrypt sensitive data.
▪ Using the RSA algorithm for secure key exchange.
 E-COMMERCE & M-COMMERCE
• Encryption:
o Definition: Converting plaintext into ciphertext.
o Example:
▪ Encrypting a database of customer passwords.
▪ Encrypting the data transmitted during an online banking session.
• Digital Signature:
o Definition: Verifying the authenticity and integrity of digital documents.
o Example:
▪ A software developer digitally signing a software update.
▪ Signing an email with a digital certificate.
• Virtual Private Network (VPN):
o Definition: Creating a secure, encrypted connection over a public network.
o Example:
▪ A remote employee using a VPN to securely access the company's internal network.
▪ A user using a VPN to protect their online privacy on public Wi-Fi.
▪ A company connecting distant branch offices together securely.