Introduction to E / M-

Business

1
Learning Objectives
By the end of the lecture you should be able to explain:
E-Commerce Technology Perspective
Internet, Intranet, Extranet Basics
Transport protocols
HTML, XML, Web Services
High level technical view
E-Commerce Business Perspective
Types of E-Commerce (B2B, B2C, G2B etc)
Payment
Security
M-Commerce
Mobile applications
Wireless networking
WWW and mobility
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E-Commerce
Technology Perspective

3
Internet Basics
Internet
Network of computers spanning the globe Netscape Navigator and
Internet Explorer
Every computer in internet is identified by a unique IP address
IP Address is a unique set of numbers (such as 110.22.33.114)
which identifies a computer location. Each of the 4 bytes is
represented by a number from 0 to 255, separated with dots
A special computer DNS (Domain Name Server) is used to give
name to the IP Address so that user can locate a computer by a
name
Internet Browser
A software program that enables you to access and navigate the
Internet by viewing Web Pages on your computer
Netscape Navigator and Internet Explorer

4
Internet Basics
WWW or World Wide Web or W3
It offers a way to access documents spread over several
servers over the internet.
Web Site
A site or area on the WWW that is accessed by its own Internet
address is called a website.
It can be a collection of related Web Pages.
Each web site contains a home page and may also contain
additional pages.
It is owned and updated by an individual, company, or
organization.
The Web is a dynamically moving and changing entity, many
web sites change on a daily or even hourly basis
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Internet Basics
Web Page
A Web page is one area of the Web site or document on
the web is a page.
It can be an article, an ordering page, or a single
paragraph, and it usually is a combination of text and
graphics
Home Page
It is the web page that your browser uses when it starts,
and
Also the web page that appears every time you open your
browser.
It also refers to the main web page out of a collection of
web pages
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 Internet Basics
URL - Uniform Resource Locator
Each Web page has a unique address called a
Uniform Resource Locator or URL.
The URL or Web address is typically composed
of four parts:
1. A protocol name (a protocol is a set of rules and
standards that enable computers to exchange
information)
2. The location of the site

3. The name of the organization that maintains the site

4. A suffix that identifies the kind of organization it is

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 Internet Basics
For example, the address http:// www. Rediff. com
is made up of the following areas:
http:// -Hypertext Transfer Protocol (HTTP). This
is the most common protocol on the Internet ;
other protocols - FTP, Mailto, https etc.
www - This site is on the World Wide Web.
Rediff - The Web server is at Rediff.
Com - This is a common extension.
Some common extensions are: .com
(commercial business), .edu, .gov, .mil (military),
.net (networking org), .org (non-profit org)
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 Internet Basics
The domain name space refers to a hierarchy in
the internet naming structure. This hierarchy has
multiple levels (from 0 to 127), with a root at the
top. The following diagram shows the domain
name space hierarchy:

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Internet Advantages

10
Internet Disadvantages

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 Intranet Basics
Intranet is defined as private network of computers
within an organization with its own server and
firewall. Moreover we can define Intranet as:
Intranet is system in which multiple PCs are networked to
be connected to each other. PCs in intranet are not
available to the world outside of the intranet.
Usually each company or organization has their own
Intranet network and members/employees of that company
can access the computers in their intranet.
Each computer in Intranet is also identified by a IP
Address, which is unique among the computers in that
Intranet.
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Intranet Advantages

13
Intranet Applications

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 Extranet Basics
Extranet refers to network within an organization, using
internet to connect to the outsiders in controlled manner. It
helps to connect businesses with their customers and
suppliers and therefore allows working in a collaborative
manner:
Extranet is implemented as a Virtual Private Networks (VPN) because
it uses internet to connect to corporate organization and there is
always a threat to information security. VPN offers a secure network in
public infrastructure (Internet).
VPN uses Internet Protocol Security Architecture (IPSEC) Protocol to
provide secure transactions by adding an additional security layer

15
Extranet Benefits

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Open System Interfaces Model

17
 TCP/IP Model
TCP/IP model is practical
model and is used in the
Internet. TCP/IP is acronym of
Transmission Control Protocol
and Internet Protocol.
The TCP/IP model combines
the two layers (Physical and
Data link layer) into one layer
i.e. Host-to-Network layer. The
following diagram shows the
various layers of TCP/IP model

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HTML Defined
HyperText Markup Language, commonly referred to as HTML, is the standard markup
language used to create web pages.[1] It is written in the form of HTML elements consisting of
tags enclosed in angle brackets (like <html>). HTML tags most commonly come in pairs like
<h1> and </h1>, although some represent empty elements and so are unpaired, for example
<img>. The first tag in such a pair is the start tag, and the second is the end tag (they are also
called opening tags and closing tags).

Web browsers can read HTML files and render them into visible or audible web pages.
Browsers do not display the HTML tags and scripts, but use them to interpret the content of the
page. HTML describes the structure of a website semantically along with cues for presentation,
making it a markup language, rather than a programming language.

HTML elements form the building blocks of all websites. HTML allows images and objects to be
embedded and can be used to create interactive forms. It provides a means to create
structured documents by denoting structural semantics for text such as headings, paragraphs,
lists, links, quotes and other items. It can embed scripts written in languages such as
JavaScript which affect the behavior of HTML web pages.

19
XML Defined
XML or Extensible Markup Language is a
meta-markup language that provides a format
for describing structured data
XML is the universal format for structured
documents and data
XML provides a standard for more precise
declarations of content and more meaningful
search results across loosely coupled
applications

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HTML vs XML
The most salient difference between HTML and XML
is that HTML describes presentation and XML
describes content. An HTML document rendered in a
web browser is human readable. XML is aimed toward
being both human and machine readable

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HTML vs XML
The HTML above describes how bibliography information is to be
presented and formatted for a human to view in a web browser.
Knowing that Sense and Sensibility is enclosed in italic tags does
not however help a program determine that it is the title of a
book. XML attempts to describe web data to address this void.

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HTML vs XML

23
HTML vs XML
A program parsing this data can take advantage of the fact that all book titles are enclosed in <title> tags. Where would
such a program find such information? An XML document may contain an optional description of its grammar. A grammar
describes which tags are used in the XML document and how such tags can be nested. A grammar is a schema or road
map for the XML document. Originally an XML grammar was specified in a DTD (Document Type Definition). A newer
standard however, XSchema (XML Schema) has been adopted. XSchema addresses some of the limitations of DTDs.

As can be seen above, XML does not contain any information indicating how the document should be rendered in a
browser. Therefore, XML factors data from presentation. The beauty of this feature is that the same data can be presented
in a variety of ways without having to replicate any data (e.g., consider making book titles bold and authors italic).

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Evolution To Web Services

XML
HTML
lo gy
hno T C P/IP
Tec
Connectivity Presentation Programmability
Inn TP, E-ma
F
ova il, Go
tion pher
Web P
ages
Web
Serv
Browse
the Web
i ces
Program
the Web
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Web Services - Defined
Web services allow exchange of information
between applications on the web
Web Services are the intersection of
connectivity, software and a business model
Common, Public end-points to process data
(platform, language, implementation
neutral)
Ability to program the web with a common
integration point XML
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 Web Services
Web Service

Seller Seller

Web Service

BROKER
Order Full-Fillment Content
Web Service

Publisher Publisher

Web Service

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BookBroker And Tedz-Demo
Tedz Book Store is an online book seller
specializing in hard to find technical books
BookBroker is an information and
transaction broker for the publishing
industry
Tedz & BookBroker speak XML via Web
Services

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Anatomy Of A Book Purchase
Customers Book Sellers Book Broker Publishers

Amazon
Purchase MSPress
Book
Services

Catalog
Pump
Tedz Books Services Wrox

Barnes & Common Data Cache Sams

Noble

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Who really manages your data?
Customers Book Sellers Book Broker
HTTP Publishers

Amazon
Purchase MSPress
Book
Services

Catalog XML
Pump
Tedz Books Services Wrox

FTP
Querying the How do I
data store for define end
points? - as a
native
Barnes & XML. Common Data Cache Sams
Noble Web Service

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What is SOAP?
Simple Object Access Protocol
SOAP provides a simple and
lightweight mechanism (protocol)
for exchanging structured and
typed information between peers in
a decentralized, distributed
environment
Flexible/Extensible
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 SOAP Applied
Customers Book Sellers WebBroker
Book Service Publishers
-Listening for
SOAP
Requests
SOAP Toolkit
Amazon
Purchase MSPress
to Create Book
SOAP Services

Requests
Catalog
Pump
Tedz Books Services Wrox

Barnes & Common Data Cache Sams

Noble

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E-Commerce
Business Perspective

33
E-Commerce

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E-Commerce Features
Non-Cash Payment E-Commerce enables use of credit cards, debit
cards, smart cards, electronic fund transfer via bank's website and other
modes of electronics payment.
24x7 Service availability E-commerce automates business of enterprises
and services provided by them to customers are available anytime,
anywhere. This leads to improved communication which in turn leads to
improved sales
Advertising / Marketing E-commerce increases the reach of advertising
of products and services of businesses. It helps in better marketing
management of products / services.
Support E-Commerce provides various ways to provide pre sales and
post sales assistance to provide better services to customers.
Inventory Management Using E-Commerce, inventory management of
products becomes automated. Reports get generated instantly when
required. Product inventory management becomes very efficient and easy
to maintain.

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 Traditional Commerce v/s E-Commerce
Sr. No. Traditional Commerce
1 Heavy dependency on information
exchange from person to person.
E-Commerce
Information sharing is made easy via
electronic communication channels
making little dependency on person
to person information exchange.

Electronics system automatically

2 Manual intervention is required for handles when to pass
each communication or transaction. communication to required person or
do the transactions.

It is difficult to establish and maintain A uniform strategy can be easily

3 standard practices in traditional established and maintain in e-
commerce. commerce.

4 Communications of business In e-Commerce or Electronic Market,

depends upon individual skills. there is no human intervention.
No uniform platform for information E-Commerce provides a universal
5 sharing as it depends heavily on platform to support commercial /
personal communication. business activities across the globe.

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What is E-business?

E-business (electronic business) is the conducting of business on

the Internet, not only buying and selling but also servicing
customers and collaborating with business partners.

The processes and tools that allow an organization to use Internet-

based technologies and infrastructure, both internally and externally,
to conduct day to day business process operations.

Stands for electronic business and refers to any kind of sales,

services, purchasing or commerce on the Internet.

A new-tech jargon word used more for marketing than for technical
description. Most commonly it broadly refers to conducting
business over the Internet (email and web) by communicating and
perhaps transacting (buying and selling) with customers, suppliers,
and business partners.
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 What is E-business?

Web

Universal Access

Standards

e-business
Using internet technologies to
transform key business processes

IT

Data

Applications

Core business processes
e-business = Web + IT
Reliability, security
and availablitiy 38
E-business types:

C2C B2B
B2C

CONSUMERS BUSINESS
C2

A
A

B2
ADMINISTRATION

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What is Consumers to
Consumers (C2C) ?

Abbreviation for consumer-to-consumer electronic

commerce; that is, commerce with no middle business
people The most notable examples are Web-based
auction, barter and classified as sites. Most large venues
for such models (for example, eBay, OLX and
Classifieds2000) are quickly permeated by consumers
who participate so actively and regularly that they
become small businesses for them.

Notably, most of the highly successful C2C examples

using the Internet actually use some type of corporate
intermediary and are thus not strictly "pure play"
examples of C2C.

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Contd
Website following C2C business model helps consumer to sell their
assets like residential property, cars, motorcycles etc. or rent a room
by publishing their information on the website. Website may or may
not charge the consumer for its services. Another consumer may opt
to buy the product of the first customer by viewing the post /
advertisement on the website

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What is Business to
Business (B2B) ?

B2B stands for "business-to-business," as in

businesses doing business with other businesses.
The term is most commonly used in connection with
e-commerce and advertising, when you are targeting
businesses as opposed to consumers.

On the Internet, B2B (business-to-business), is the

exchange of products, services, or information
between businesses. B2B is e-commerce between
businesses.

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.
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Contd
Website following B2B
business model sells its
product to an intermediate
buyer who then sells the
product to the final
customer. As an example,
a wholesaler places an
order from a company's
website and after receiving
the consignment, sells the
end product to final
customer who comes to
buy the product at
wholesaler's retail outlet
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Contd
Supplier Oriented marketplace In this type of model,
a common marketplace provided by supplier is used by
both individual customers as well as business users. A
supplier offers an e-stores for sales promotion.
Buyer Oriented marketplace In this type of model,
buyer has his/her own market place or e-market. He
invites suppliers to bid on product's catalog. A Buyer
company opens a bidding site.
Intermediary Oriented marketplace In this type of
model, an intermediary company runs a market place
where business buyers and sellers can transact with
each other
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Virtual Markets

goods, services,
Needed, measure deadline and
price offer circumstances

buyers seller

mediators
buyers seller
Goods Goods
A B
buyers seller
finished orders orders

Virtual connections to other

markets
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The path of the deal

buyers seller

buyers seller

buyers seller

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What is Business to
Consumers (B2C) ?

Refers to businesses selling products or services to

end-user consumers.

B2B stands for transaction activities involving two

business entities (business-to-business transaction).
B2C stands for transaction activities involving a
business and a consumer (business-to-consumer
transaction).
Electronic commerce comprises commercial
transactions, involving both organisations and
individuals. From the technical point of view e-
commerce is the processing and transmission of
digitised data. E-commerce decreases the distance
between producers and consumers. Consumers can
make their purchase without entering a traditional
shop.
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 Contd
Website following B2C business model sells its product directly
to a customer. A customer can view products shown on the
website of business organization. The customer can choose a
product and order the same. Website will send a notification to
the business organization via email and organization will
dispatch the product/goods to the customer

48
What is Business to
Administration (B2A) ?

Short for business-to-administration, also known as

e-government. B2A is the idea that government
agencies and businesses can use central Web sites to
conduct business and interact with each other more
efficiently than they usually can off the Web. FindLaw
is an example of a site offering B2A services -- a
single place to locate court documents, tax forms and
filings for many different local, state and federal
government organizations

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Business - to - Government (B2G)
B2G model is a variant of B2B model. Such websites are used
by government to trade and exchange information with
various business organizations. Such websites are accredited
by the government and provide a medium to large businesses
to submit application forms to the government

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 Government - to - Business (G2B)
Government uses G2B model website to approach business
organizations. Such websites support auctions, tenders and
application submission functionalities

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 Government - to - Citizen (G2C)
Government uses G2C model website to approach citizen in
general. Such websites support auctions of vehicles,
machinery or any other material. Such website also provides
services like registration for birth, marriage or death
certificates. Main objectives of G2C website are to reduce
average time for fulfilling people requests for various
government services

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Advantages to Organizations

Expand market beyond geographical boundaries with minimum

capital investment

Reduce inventory costs

Streamline procurement procedures and reduce the

cost of procurement

Improve customer service and satisfaction and Brand Image

Reduce administrative and operating costs

Simplify the business processes and make them faster and efficient

Increase communication efficiency and interaction with

employees, vendors, customers and strategic partners

Increase revenues and profit margins

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Advantages to Customers

E-Commerce application provides user more options and

quicker delivery of products

E-Commerce application provides user more options to compare

and select the cheaper and better option
A customer can put review comments about a product and can
see what others are buying or see the review comments of other
customers before making a final buy

24x7 availability and support

A customer can see the relevant detailed information within
seconds rather than waiting for days or weeks

E-Commerce increases competition among the organizations

and as result organizations provides substantial discounts
to customers

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Advantages to Society

Customers need not to travel to shop a product thus

less traffic on road and low air pollution

E-Commerce helps reducing cost of products so less

affluent people can also afford the products

E-Commerce has enabled access to services and products to

rural areas as well which are otherwise not available to them

E-Commerce helps government to deliver public services

like health care, education, social services at reduced cost
and in improved way

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Technical Disadvantages
There can be lack of system security, reliability or standards owing
to poor implementation of e-Commerce.
Software development industry is still evolving and keeps changing
rapidly.
In many countries, network bandwidth might cause an issue as
there is insufficient telecommunication bandwidth available.
Special types of web server or other software might be required by
the vendor setting the e-commerce environment apart from network
servers.
Sometimes, it becomes difficult to integrate E-Commerce software
or website with the existing application or databases.
There could be software/hardware compatibility issue as some E-
Commerce software may be incompatible with some operating
system or any other component
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Non-Technical Disadvantages
Initial cost: The cost of creating / building E-Commerce application
in-house may be very high. There could be delay in launching the E-
Commerce application due to mistakes, lack of experience.
User resistance: User may not trust the site being unknown faceless
seller. Such mistrust makes it difficult to make user switch from
physical stores to online/virtual stores.
Security/ Privacy: Difficult to ensure security or privacy on online
transactions.
Lack of touch or feel of products during online shopping.
E-Commerce applications are still evolving and changing rapidly.
Internet access is still not cheaper and is inconvenient to use for
many potential customers like one living in remote villages

57
E-business infrastructure

INTERNET
ACCESS,
HARDWARE SOFTWARE SERVICES,
E-payment,
CERTIFICATES,
ADVERTISEMENT

58
How safe are e-Business financial
transactions?

New security technology like 128-bit SSL encryption ensures the safety and
privacy of both you and your customers, and is built into the latest e-Business
software tools. Your security and privacy is a top priority with all e-Business
providers. Secure VPN

SERVER
WEBSERVER
SERVER
Merchant
Merchant
INTERNET Merchant
Storefront
Storefront
Storefront

WEB
WEB
Consumer SSL

Acquiring
BANK VIRTUAL
POS
Credit Card
PAYMENT
Network
GATEWAY
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Security Measures
Encryption It is a very effective and practical way to
safeguard the data being transmitted over the network.
Sender of the information encrypt the data using a
secret code and specified receiver only can decrypt the
data using the same or different secret code.
Digital Signature Digital signature ensures the
authenticity of the information. A digital signature is a e-
signature authentic authenticated through encryption
and password.
Security Certificates Security certificate is unique
digital id used to verify identity of an individual website
or user.

60
E-Payment Credit Card
Step Description

Step 1 Bank issues and activates a credit card to customer on his/her

request on behalf of Credit card association.
Customer presents credit card information to merchant site or to
Step 2 merchant from whom he/she want to purchase a product /
service.

Step 3 Merchant validates customer's identity by asking for approval

from the acquiring bank.

Step 4 The acquiring bank authenticates the credit card and guarantees
the Merchant for payment. Merchant keeps the sales slip.

Step 5 Merchant submits the sales slip to acquiring bank and gets the
payment including service charges.

Step 6 Acquiring bank requests the issuing bank to clear the credit
amount and gets the payment.
Step 7 Now, the issuing bank asks the cardholder to make its payment.

61
E-Payment Other means
Debit Card (amount gets deducted from card's bank
account immediately - so there should be sufficient
balance in the bank account)
Smart Card (it has a small microprocessor chip
embedded in it. It can store customer credentials and
money which is reduced as per usage)
E-Money (payment is done over the network and
amount gets transferred from one financial body to
another financial body without any involvement of a
middleman)
Electronic Fund Transfer (EFT) (transfer money from
one bank account to another bank account)

62
M-Commerce

63
Mobile Applications - 1
Vehicles
transmission of news, road condition etc
ad-hoc network with near vehicles to prevent
accidents
Emergencies
early transmission of patient data to the hospital
ad-hoc network in case of earthquakes, cyclones
military ...

64
Mobile Applications - 2
Travelling salesmen
direct access to central customer files
consistent databases for all agents
mobile office
Web access
outdoor Internet access
intelligent travel guide with up-to-date
location dependent information

65
Mobile Applications - 3
Location aware services
find services in the local environment, e.g. printer
Information services
push: e.g., stock quotes
pull: e.g., nearest cash ATM
Disconnected operations
mobile agents, e.g., shopping
Entertainment
ad-hoc networks for multi user games

66
Mobile Applications in Industry
Wireless access: phone.com
Alerting services: myalert.com
Location services: airflash.com
Intranet applications: imedeon.com
Banking services: macalla.com
Web access: wapforum.com
Mobile agents: tryllian.com

67
Limitations of Mobile Environment
Limitations of the Wireless Network
heterogeneity of fragmented networks
frequent disconnections
limited communication bandwidth
Limitations Imposed by Mobility
lack of mobility awareness by system /
applications
Limitations of the Mobile Computer
short battery lifetime
limited capacities
68
Effect of Mobility on Protocol Stack
Application
new applications and adaptations
Transport
congestion and flow control
Network
addressing and routing
Link
media access and handoff
Physical
transmission errors and interference 69
Wireless Networks
Infrastructure-based networks
cellular systems (base station infrastructure)

Ad hoc networks
useful when infrastructure not available,
impractical, or expensive
military applications, rescue, home
networking

70
Cellular system: GSM
GSM
formerly: Groupe Spciale Mobile (founded 1982)
now: Global System for Mobile Communication
Communication: voice and data services
Mobility: International access, access control
Service Domains:
bearer services: transfer of data between points
telematic services: telephony, SMS messages
supplementary services: call forwarding, conferencing

71
Architecture of the GSM system
GSM is a PLMN (Public Land Mobile Network)
Components
MS (mobile station)
BS (base station)
MSC (mobile switching center)
LR (location register)
Subsystems
NSS (network and switching subsystem): call forwarding,
handover, switching
OSS (operation subsystem): n/w management

72
Cellular Wireless
Space divided into cells
A base station is responsible to
communicate with hosts in its cell
Mobile hosts (MH) can change cells
while communicating
Hand-off occurs when a mobile host
starts communicating via a new base
station

73
Multi-Hop Wireless
May need to traverse multiple links to reach
destination

Mobility causes route changes

74
Hand-Off Procedure
Each base station periodically transmits beacon
Mobile host, on hearing stronger beacon from a new BS, sends it a
greeting
changes routing tables to make new BS its default gateway
sends new BS identity of the old BS
New BS acknowledges the greeting and begins to route MHs packets

75
Hand-Off Procedure
New BS informs old BS
Old BS changes routing table, to forward any
packets for the MH to the new BS
Old BS sends an ack to new BS
New BS sends handoff-completion message
to MH
4
Old New
BS 5,6 BS
1
2
3
MH
7 76
Hand-off Issues
Hand-offs may result in temporary loss of
route to MH
with non-overlapping cells, it may be a while
before the mobile host receives a beacon
from the new BS
While routes are being reestablished
during handoff, MH and old BS may
attempt to send packets to each other,
resulting in loss of packets
77
World Wide Web and Mobility
HTTP and HTML have not been designed for
mobile applications/devices
HTTP Characteristics
stateless, client/server, request/response
connection oriented, one connection per request
primitive caching and security
HTML Characteristics
designed for computers with high performance,
color high-resolution display, mouse
typically, web pages optimized for design, not for
communication; ignore end-system characteristics
78
HTTP and Mobility
HTTP
designed for large bandwidth and low delay
big protocol headers (stateless, ASCII)
uncompressed content transfer
TCP handshake, DNS lookup overheads
Caching
often disabled by information providers
dynamic objects, customized pages
Security problems
Uses SSL

79
System Support for Mobile WWW
Enhanced browsers
Enhanced servers
HDML (handheld device markup language)
HDTP (handheld device transport protocol)

80
WAP - Wireless Application Protocol
Forum: wapforum.org
co-founded by Ericsson, Motorola, Nokia,
Unwired Planet
Goals
deliver Internet services to mobile devices
independence from wireless network standards

Platforms
e.g., GSM (900, 1800, 1900), CDMA IS-95,
TDMA IS-136, 3rd generation systems (IMT-
2000, UMTS, W-CDMA)

81
WAP Overview
Browser
micro browser, similar to existing web browsers
Script language
similar to Java script, adapted to mobile devices
Gateway
transition from wireless to wired world
Server
wap server, similar to existing web servers
Protocol layers
transport layer, security layer, session layer etc.
82
Wireless Markup Language (WML)
Cards and Decks
WML document consists of many cards, cards are
grouped to decks
a deck is similar to an HTML page, unit of content
transmission
WML describes only intent of interaction in an
abstract manner
presentation depends on device capabilities
Features
text and images
user interaction
navigation
context management 83