📌 PART-A (Short Answers)
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1) What do you know about ICDT Business Model?
The ICDT model stands for Information, Communication, Distribution, and Transaction. It explains
how e-commerce integrates information delivery, communication between parties, distribution of
digital/physical goods, and transactions through electronic systems. It helps classify e-commerce
applications based on which components are used.
2) What is HTTP?
HTTP (Hyper Text Transfer Protocol) is an application layer protocol used for transferring hypermedia
documents such as web pages on the internet. It defines rules for communication between web
browsers and web servers.
3) VAN
VAN (Value Added Network) is a private network provider that offers enhanced services like secure
data transfer, EDI support, message routing, and data storage between business partners.
4) List the benefits of Smart Card
Smart cards offer: increased security, data storage capability, fraud reduction, faster transactions,
multi-purpose usage, and portability.
5) What is EFT?
EFT (Electronic Funds Transfer) is a system that transfers money electronically between bank
accounts through computers and digital networks without using physical cash or cheques.
6) What is E-Marketing?
E-Marketing refers to the use of electronic media like websites, email, social media, and digital
networks for promoting, selling products and maintaining customer relationships.
7) Define Protocol.
A protocol is a set of rules and standards that govern the communication and data exchange between
computers in a network.
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📌 PART-B (Long Answers)
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8 a) Define E-Commerce from different perspectives along with its goals.
E-Commerce refers to buying, selling, marketing, and servicing of products and services over digital
networks like the internet.
Perspectives:
• Communications: delivery of information, products, or services via computer networks
• Business process: automation of business transactions and workflows
• Service: reduces service cost and improves quality
• Online: buying and selling through electronic systems
• Collaborative: enhanced communication and coordination among business partners
Goals of E-Commerce:
• Global market reach
• Cost reduction and efficiency improvement
• Faster business processes
• Better customer service and customization
• Competitive advantage
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8 b) Explain the Three Pillars of E-Commerce.
The three major pillars are:
1. People – Consumers, sellers, intermediaries, employees who interact digitally
2. Public Policy – Laws and regulations supporting security, privacy, taxation, consumer
protection
3. Technical Standards & Infrastructure – Internet, hardware, software, protocols, payment
systems
Together they ensure smooth, secure, and reliable online business operations.
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9 a) Explain various network protocols.
Important protocols used in e-commerce:
• TCP/IP – communication and data transmission backbone of the Internet
• HTTP/HTTPS – web browsing and secure communication
• FTP/SFTP – file transfer between devices
• SMTP/POP3/IMAP – email handling and delivery
• SSL/TLS – encrypted secure communication for online payments
These ensure interoperability and secure communication online.
9 b) What is Encryption? Write about various encryption techniques.
Encryption is the conversion of data into an unreadable form to protect it during transmission or
storage.
Techniques:
• Symmetric Encryption – Same key used for encryption & decryption (e.g., DES, AES)
• Asymmetric Encryption – Uses public key & private key (e.g., RSA)
• Hashing – One-way transformation of data (e.g., SHA, MD5)
These protect confidentiality, integrity, and authenticity of data.
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11 a) Write the advantages and risks in Electronic Fund Transfer (EFT) System.
Advantages:
• Fast and accurate transactions
• Low processing cost
• Reduced paperwork
• Convenient and 24/7 availability
• Secure digital record maintenance
Risks:
• Cyber fraud and hacking
• Technical failures and network issues
• Data theft & privacy concerns
• Dependency on technology
11 b) Explain the digital currency E-Cash and its legal issues.
E-Cash is a digital form of money used for online transactions. It is stored in smart cards or electronic
wallets and used like physical cash but in virtual form.
Legal Issues:
• Authentication and security
• Regulatory approval from government/banks
• Money laundering risk
• Consumer protection and taxation
• Jurisdiction issues in cross-border payments
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12 a) Explain EDI types in detail.
EDI (Electronic Data Interchange) enables automated electronic exchange of structured business
documents.
Types:
• Direct EDI – Direct connection between trading partners
• EDI via VAN – Uses Value Added Networks for secure transfer
• Web-based EDI – Uses internet and browsers
• Mobile EDI – Transactions via smartphones
• EDI with ERP systems – Integrated with enterprise systems for automation
EDI removes paper, reduces cost, and increases efficiency.
12 b) What is Intra-Organisational E-Commerce? What are its features?
Intra-organisational e-commerce refers to digital business activities conducted within a single
organization using intranets.
Features:
• Internal communication and collaboration
• Secure limited access
• Resource sharing like documents, policies
• Workflow automation
• Reduced operational cost and improved productivity
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13 a) State the role, benefits, and limitations of Digital Marketing.
Role:
Promoting products/services through online media like websites, SEO, social media, and email.
Benefits:
• Low cost and global reach
• High customer engagement
• Real-time data analysis
• Personalized marketing
• Measurable results
Limitations:
• High competition and ad saturation
• Privacy issues
• Security threats
• Requires skilled manpower and technology
13 b) What is Virtual Reality? Explain its role in E-Marketing.
Virtual Reality (VR) is computer-generated 3D simulation that gives users a real-life interactive
experience using special devices like VR headsets.
Role in E-Marketing:
• Product visualization before purchase
• Virtual trial rooms, showroom tours
• Enhanced customer engagement
• Interactive promotional campaigns
• Better decision-making with immersive experiences