MOUNT KENYA UNIVERSITY

NAME: MOHAMED ABDIRASHID DAHIR

ADM.NO. BCOM/42414/2016

UNIT NAME: E-COMMERCE

UNIT CODE: BIT 4204

CAT 1
1.What is e-commerce? Discuss B2B2C and C2B2C model giving proper examples. [6
Marks]
What is E-commerce.
E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the
transmitting of funds or data, over an electronic network, primarily the internet. These business
transactions occur either as business-to-business, business-to-consumer, consumer-to-consumer
or consumer-to-business. The terms e-commerce and e-business are often used interchangeably.

Business to Business to Consumer (B2B2C) mean?

Business to business to consumer (B2B2C) is an e-commerce model that combines business to

business (B2B) and business to consumer (B2C) for a complete product or service transaction.
B2B2C is a collaboration process that, in theory, creates mutually beneficial service and product
delivery channels.

B2B2C is a business model where online, or e-commerce, businesses and portals reach new
markets and customers by partnering with consumer-oriented product and service businesses. A
business developing a product, service or solution partners with another business to use a
particular service, such as an e-commerce website, portal or blog. The two business combine
forces and promote mutually beneficial products, services and/or solutions.

As an example of a B2B2C model, Business A pays Business B for users, leads or sales
generated by Business B's business or website. Business A then uses Business B's channels to
locate prospective customers. Business B provides its customers with new and relevant services,
facilitating an increased customer base and earned revenue for sold products and services.

Consumer to Business to Consumer (C2B2C)

Consumer to business to consumer (C2B2C) is a business model that is commonly associated

with e-commerce transactions. In C2B2L, a business acts as an intermediary between two
consumers who exchange goods. This exchange is a business transaction in which one of the
individuals acts as a seller and the other acts as a buyer.
An example of a consumer to business to consumer business model would be a service like
eBay. When using eBay, a seller puts up an item to be bid on and the winning bidder purchases it
from the seller. This person is an eBay customer, as is the seller. eBay acts as the intermediary
between the two parties, while one sells the good to the other for a cost. eBay takes a cut.

2. Define Electronic Data Interchange.What are the components of Electronic Data

Interchange? [4 Marks]

Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents

in a standard electronic format between business partners.

Components of Electronic Data Interchange.

Software for communications, mail boxing of EDI transactions, mapping and translation.

VAN, ASYNC, BISYNC, and Internet communications as required by various partners.

Hardware including a server or PC, communication devices and peripherals

Secured office space and monitored security

Data backups and redundant power for reliability

Additional software will be needed if integration of the EDI transactions with back office
systems is desired.

A VAN will need to be contracted for ongoing EDI transmissions.

Personnel must be trained in how to use the software and communication devices.
Maps will need to be developed for each EDI document type to be exchanged with each partner.
Maps translate the encoded EDI record into a useable format.

3.Explain how SSL protocol is used for secure transaction.Explain the advantages of e-
commerce. [4 Marks]

Secure Sockets Layer (SSL) is a standard security technology for establishing an encrypted link
between a server and a clienttypically a web server (website) and a browser, or a mail server
and a mail client (e.g., Outlook).

SSL allows sensitive information such as credit card numbers, social security numbers, and login
credentials to be transmitted securely. Normally, data sent between browsers and web servers is
sent in plain textleaving you vulnerable to eavesdropping. If an attacker is able to intercept all
data being sent between a browser and a web server, they can see and use that information.

More specifically, SSL is a security protocol. Protocols describe how algorithms should be used.
In this case, the SSL protocol determines variables of the encryption for both the link and the
data being transmitted.

All browsers have the capability to interact with secured web servers using the SSL protocol.
However, the browser and the server need what is called an SSL Certificate to be able to
establish a secure connection.

SSL secures millions of peoples data on the Internet every day, especially during online
transactions or when transmitting confidential information. Internet users have come to associate
their online security with the lock icon that comes with an SSL-secured website or green address
bar that comes with an Extended Validation SSL-secured website. SSL-secured websites also
begin with https rather than http.
Advantages of e-commerce.

The Internet might be the single most important facet of modern society, governing everything
from political discourse and higher education to the way we conduct ourselves and our
businesses. It's no wonder, then, that switching your business to an e-commerce model would
come with a huge amount of advantages.

On top of eliminating the need for long lines at physical stores, e-commerce sites allow people
who are not situated in major urban areas access to stores located remotely. E-commerce, as a
result, opens new markes for your business, allowing you to develop a new business model
geared toward your expanding consumer base, especially one that relies on goods e-commerce
search engine optimizations to drive more free traffic to the site through consumers' use of search
engines.

Since you also eliminate the need for a physical store, your business can save money on rent and
upkeep like utilities and maintenance. Additionally, because there is no limit to the number of
items that can be sold online, your store's stock can expand exponentially by moving to an e-
commerce model, and the store can remain open 24/7 so consumers can browse your wares at
their leisure.

Thanks to e-commerce, consumers can also purchase digital goods like music albums, videos, or
books instantaneously, and stores can now sell unlimited copies of these digital items. This also
cuts down on things like employee payroll expenses because you no longer need to have dozens
of employees a week on-site to sell albums, books, or movies.

E-commerce also allows your business to scale up easier than physical retailers as they are not
bound by physical limitations like inventory storage space. Of course, logistics gets tougher as a
business grows, but one can scale up its logistics, too, with the choice of the third-party logistics
provider.

Since the e-commerce merchant captures contact information in the form of email, sending out
automated and customized emails is quite easy. Additionally, these businesses and metrics allow
for superior store customization by using cookies and other methods of monitoring a consumer's
behavior,

4. What role does SCM play in Business to Business model i.e B2B e-Commerce. [4
Marks]

Supply Chain Management Clarity Ventures has integrated ERP, CRM, and supply chain
management systems for hundreds of clients. We can work with your company to determine
exactly what you need to maximize your efficiency while operating within a tight budget. Speak
to a representative today if your B2B eCommerce company needs a supply chain management
overhaul. For nearly a decade, our expert team at Clarity has helped clients integration their
supply chain management systems with their software and eCommerce. To find out more about
how Clarity can help your company with supply chain integration, call or click to contact us
today!

5. Discuss e-governance.Explain the Business to Administration model. [4 Marks]

E-governance is the application of information and communication technology (ICT) for

delivering government services, exchange of information, communication transactions,
integration of various stand-alone systems and services between government-to-customer (G2C),
government-to-business (G2B), government-to-government (G2G) as well as back office
processes and interactions within the entire government framework.Through e-governance,
government services will be made available to citizens in a convenient, efficient and transparent
manner. The three main target groups that can be distinguished in governance concepts are
government, citizens and businesses/interest groups. In e-governance there are no distinct
boundaries. Generally four basic models are available government-to-citizen (customer),
government-to-employees, government-to-government and government-to-business
6. Discuss in brief virtual auction.Explain the differences between virtual auction and
reverse auction. [4 Marks]

An online auction is a service in which auction users or participants sell or bid for products or
services via the Internet. Virtual auctions facilitate online activities between buyers and sellers in
different locations or geographical areas. Various auction sites provide users with platforms
powered by different types of auction software.

The differences between virtual auction and reverse auction.

Virtual Auction - Is generally a regular auction where buyers compete with other buyers to
purchase an item by offering increasingly higher prices for the item. What makes the auction
virtual is that its conducted through an online environment (like the Internet). A good
example of a virtual auction are eBays regular auction listings (not Buy It Now). While Reverse
Auction - a different auction format where sellers compete for buyers usually by progressively
lowering the price of an item until a buyer agrees to purchase it. A good example of a Reverse
Auction format is on eBays Half . com website where sellers lower the price of the books and
media theyre offering for sale until a buyer chooses to purchase them.

7. What is Firewall?State the function of Firewall in e-commerce. [4Marks]

A firewall is a network security system, either hardware- or software-based, that uses rules to
control incoming and outgoing network traffic.

The role of a firewall is to prevent malicious traffic reaching the resources that it is protecting. Some
security experts feel this is an outdated approach to keeping information and the resources it resides on
safe.

The key benefit of application-layer filtering is the ability to block specific content, such as
known malware or certain websites, and recognize when certain applications and protocols --
such as HTTP, FTP and DNS -- are being misused.
A proxy firewall prevents direct connections between either sides of the firewall; both sides are
forced to conduct the session through the proxy, which can block or allow traffic based on its
rule set. A proxy service must be run for each type of Internet application the firewall will
support, such as an HTTP proxy for Web services.
References.

CERT. (1999). Design the firewall. Retrieved Jan 25, 2006, from http://www.cert.org/security-
improvement/practices/p053.html

Cisco. (n.d.). SAFE Blueprint. Retrieved Jan 19, 2006, from

http://www.cisco.com/en/US/netsol/ns340/ns394/ns171/ns128/networkin
g_solutions_package.html Fraser, B. (1997, September). Site Security Handbook: Request for
Comment 2196. Retrieved Jan 19, 2006, from http://www.rfceditor.org/rfc/rfc2196.txt.

Carnegie Mellon University, Institute for eCommerce,

http://www.ecom.cmu.edu/resources/elibrary/eclgloss.shtml.

Internet.com, ECommerce Webopedia,

http://ecommerce.internet.com/resources/library/paysolutions

Oregon Innovation Center, http://www.oregoninnovation.org/pressroom/glossary.a-c.html.

University of Texas at Arlington, eBusiness Alliance,

http://www2.uta.edu/ecomm/resources/glossaryComplete.asp.