EVEN SEMESTER 2021

DEPARTMENT OF COMPUTER APPLICATIONS

STUDY MATERIAL
TITLE: E-COMMERCE
PAPER CODE:
UNIT I
History of E-commerce and Indian Business Context : E-Commerce –Emergence of the
Internet – Emergence of the WWW – Advantages of E-Commerce – Transition to E-
Commerce in India – The Internet and India – E-transition Challenges for Indian Corporates.
Business Models for E-commerce: Business Model – E-business Models Based on the
Relationship of Transaction Parties - E-business Models Based on the Relationship of
Transaction Types.

UNIT II
Enabling Technologies of the World Wide Web: World Wide Web – Internet Client-Server
Applications – Networks and Internets – Software Agents – Internet Standards and
Specifications – ISP.
E-Marketing: Traditional Marketing – Identifying Web Presence Goals – Online Marketing
– E-advertising – E-branding.

UNIT III
E-Security: Information system Security – Security on the Internet – E-business Risk
Management Issues – Information Security Environment in India.
Legal and Ethical Issues : Cyberstalking – Privacy is at Risk in the Internet Age – Phishing
– Application Fraud – Skimming – Copyright – Internet Gambling – Threats to Children.

UNIT IV
E-Payment Systems: Main Concerns in Internet Banking – Digital Payment Requirements –
Digital Token-based e-payment Systems – Classification of New Payment Systems –
Properties of Electronic Cash – Cheque Payment Systems on the Internet – Risk and e-
Payment Systems – Designing e-payment Systems – Digital Signature – Online Financial
Services in India - Online Stock Trading.

UNIT V
Information systems for Mobile Commerce: What is Mobile Commerce? – Wireless
Applications – Cellular Network – Wireless Spectrum – Technologies for Mobile Commerce
– Wireless Technologies – Different Generations in Wireless Communication – Security
Issues Pertaining to Cellular Technology.
Portals for E-Business: Portals – Human Resource Management – Various HRIS Modules.
 UNIT I

HISTORY OF E-COMMERCE AND INDIAN BUSINESS CONTEXT:

Electronic commerce
 E-Commerce or Electronics Commerce is a methodology of modern business, which
addresses the need of business organizations, vendors and customers to reduce cost
and improve the quality of goods and services while increasing the speed of delivery.
E-commerce refers to the paperless exchange of business information using the
following ways
 Electronic Data Exchange (EDI)
 Electronic Mail (e-mail)
 Electronic Bulletin Boards
 Electronic Fund Transfer (EFT)
 Other Network-based technologies
 The movement has been divided in to two main sectors:
1. Business-to-Business (B2B).
2. Business-to-Consumer (B2C).

Frameworks
Electronic commerce framework is comprised of three levels that this framework is needed to
for successful electronic commerce.
1. Infrastructure
The first part of the framework for electronic commerce is including hardware, software,
databases and communications. It is used in term of World Wide Web on the Internet or other
message switching methods on the Internet or other telecommunication networks.
2. Services
The second part of the framework include a wide range of services that provide the ability to
find and present of information and are including the search for trading partners, negotiation
and agreements
3. Products and Structures
This section of the electronic commerce frameworks consist forecasts and direct provision of
goods, services and trade-related information to customers and business partners, cooperation
and sharing of information within and outside the organization and organizing of
environment of electronic marketplace and chain of supply and support.
Differences between Electronic Commerce and traditional commerce
The major difference is the way information is exchanged and processed:
 Traditional commerce:
• Face-to-face, telephone lines, or mail systems
• Manual processing of traditional business transactions
• Individual involved in all stages of business transactions
 E-Commerce:
• using Internet or other network communication technology
• automated processing of business transactions
• Individual involved in all stages of transactions
• pulls together all activities of business transactions, marketing and advertising as
well as service and customer support
Early Business Information Interchange Efforts:

In 1968, a number of freight and shipping companies joined together to form the
Transportation Data coordinating Committee (TDCC), which has charged with
exploring ways to reduce the paperwork burden that shippers and carriers faced.
The TDCC, created a standardized information set that included all the data elements
that shippers commonly included in bills of lading, freight invoices, shipping
manifests, and other paper forms.
In 1979, ANSI charted a new committee to develop uniform EDI standards. This
committee is called the Accredited Standards Committee X12 (ASC X12).
In 1987, the United Nations published its first standards under the title EDI for
Administration, Commerce, and Transport (EDIFACT, or UN/EDIFACT).

Emergence of the Internet:

In 1969, the Defense Department researchers used this network model to connect four
computers.
After, the Defense Department using network software included two tools for
performing these tasks. File Transfer Protocol (FTP) enabled users to transfer files
between computers, and Telnet.
In 1979, a group of students and programmers at the Duke University and the
University of North Carolina started Usenet (Users News Network).

Commercial Use of the Internet:

In 1989, the NSF permitted two commercial e-mail services, MCI Mail and
CompuServe to establish limited connections to the Internet for the sole purpose of
exchanging e-mail transmissions with users of the Internet.

Growth of the Internet:

In 1995, the NSF turned over the operation of the main Internet connections to a group
of privately owned companies. The new structure of the Internet was based on four
Network Access Points (NAPs), each operated by a separate company.
To sell Internet access rights directly to larger customers and indirectly to smaller firms
through other companies called Internet Service Providers (ISPs).

Emergence of the World Wide Web:

Origins of the Web:

In 1995, the Web development was marked by rapid commercialization and technical
change.
Netscape Communication’s browser called Netscape Navigator continued to include
more extensions of the Hypertext Markup Language (HTML).
Advantages of E-commerce:

Some of the keys strngths of using the Internet for business include the following:
1.24 x 7 Operation:
Round-the-clock operation is an expensive proposition in the ‘brick-and-mortar’
world.
2.Global reach:
The net being inherently global, reaching global customers is relatively easy on the
net compared to the world of bricks.
3.Cost of acquiuring, serving and retaining customers:
It is relatively cheaper to acquire new customers over the net.
4.An extended enterprise is easy to build:
The Internet provides an effective way to extend the enterprise beyond the narrow
confines of our own organization.
5.Disintermediation:
Using the Internet , one can directly approach the customers and suppliers, cutting
down on the number of levels and in the process, cutting down the costs.
6.Improved customer service to clients.
7.Power to provide the ‘best of both the worlds’.
8.A technology based customer interface.
9.The customer controls the interaction.
10.Knowledge of customer behaviour.
11.Network economics.
Transition to E-commerce in India:

E-commerce is dependent to a great extent, on the number of internet users in India.

The following tables give the rate of growth of internet users in India.
GROWTH OF THE INTERNET IN INDIA

Year Internet Subscribers Internet Users

1997 25 45
1998 150 200
1999 359 1000
2000 650 2000
2001 1130 6668
2002 1763 10684
2003 3661 29000
2004 4403 31723
2005 6000 35000
2006 25000 37000

Dozens of small to large Internet Service Provider have setup shop, triggeringa price
war and an improvement of service.

TOTAL E-COMMERCE TRANSACTIONS IN INDIA

Year Total e-commerce transactions

1998 – 1999 131
1999 – 2000 450
2000 – 2002 1400
2006 2300
2007 7000
E-commerce Opportunities for Industries:

Indian software and services companies need to tap into some of these vertical
segments to gain the maximums advantage in the e-commerce solution sector.

1.economic Services:
A large number of users use the Internet for some form of economic guidance.
2.stash trading:
Online stash trading is now days one of the most demanding e-commerce utilities.
3.Banking:
Internet banking is now growing. Many banks like ICICI and HDFC are making
inroads in to this area.
4.Legal and practiced services:
Opportunities also exist for Indian companies in legal and other proficient services. In
terms of opportunities for Indian legal service providers, the requirement for
 proficient, legal and regulatory advice is expected to increase as the number of e-
commerce user’s increases.
5.Tour and Travel:
The Travel industry has readily adapted to e-commerce. The sectors have adopted
well because of their online reservation system.
6.Healthcare:
Healthcare represents one of the biggest expenditures of government worldwide.

E-TRANSITION CHALLENGES FOR INDIAN CORPORATE:

1. Internal Resisting Issues:
Bureaucratic wrangles:
With the organizations e-transforming themselves, the old ways of doing things are being
replaced by new ways which destabilize the existing power equations.
Cultural changes:
The e-biz team spearheading the e-com initiatives in an organization mostly consists of
young, externally recruited.
Not many are prepared:
A survey by the GIIC found out that only 20 percent of the organizations covered under the
CIO segment are trying to use e-commerce at least to some extent.
Lack of skill and training:
Lack of skill and training within a company and lack of funds are other factors impending the
implementation of IT in companies.
2. External Driving Factors:
Sheer necessity:
No one will dispute the argument that any business will benefit if it cuts down the processing
time for a transaction.
Big business, the driving factor:
Business entities will themselves be the key drivers. The big bosses of the industries will be
the guiding and forcing factor SMEs to adopt the Internet.
Global Market:
Globalization is forcing organization to achieve new competitive levels in order to enter the
world market.
Value for money:
Purely from the customer’s perspective, e-commerce will be one of the key factors in
propelling B2C growth in the Indian market.
No-entry barriers:
The good thing about the Internet is that one does not need deep pockets to be successful.
Doubts and Difficulties:

1.Households are shaky about buying over the Internet:

 A very high proportion among PC owners and PC non-owners opine that they
would not like to buy through the Internet.
 The reasons are they are not sure of the quality and the delivery of the
products.
2.Computers are not bought for browsing the Internet:
 Browsing the Internet and purchasing through the Internet are among the least
important perceived benefits of owing a computer.
3.Lack of proper commercial and legal system:
 Security, lack of proper and secure payment structures, legal issues: a clear fix
on contracts and liabilities in the digital economy and trust and assurance are
the main concerns.

BUSINESS MODELS FOR E-COMMERCE:

BUSINESS MODELS

E-commerce can be defined as any form of business transaction in which the parties
interact electronically.
Electronic markets have three main functions such as:
i.) Matching buyers and sellers.
ii.) Facilitating commercial transactions, and
iii.) Providing legal infrastructure.

1 2 3 X

. . . Buyers

E-Commerce Services

Search valuation logistics payment Authentication

 There are many different ways to categorize e-business models, they can be broadly
classified as follows:
1. E-Business model based on the relationship of transaction parties.
2. E-Business model based on the relationship of transaction types.
 3. Classification by revenue model: A revenue model may comprise
(i) Product sales model that charges customers directly for the products or services
they buy.
(ii) Subscription model that charges a fixed monthly or annual rental for the service.
(iii) Transaction fee model that charges a fixed a service fee based on volume and
value of the transaction offered.
4. Classification by distribution channel. A distribution may comprise:
(i) Direct marketing where manufacturers such as Dell.
(ii) Pure play e-tailers who have no physical stores only an online sales presence.

Bot

Listing Broker
Aggregated catalogues directories
or listings of offers to buy and / or
sell
Auction C Community

Aggregator Exchange

Portal Hub

Marketplace Mall

 A business model can be defined as architecture for product, service, and information
flow, including a description of business players, their roles, and revenue services.
 E-Commerce models can be perceived in the form of relationship between two
entities such as:
 Direct marketing versus indirect marketing.
 Fully cyber marketing versus partial cyber marketing.
 Electronic distributor versus electronic broker.
 Electronic store versus shopping mall.
 Generalized e-malls versus specialized e-malls.
 Global versus regional marketing.
 Sales versus customer service.

E-Business Models based on the Relationship of Transaction parties:

 Electronic markets are emerging in various fields. Different industries have markets
with different characteristics.
 E-Commerce can be classified according to the transaction partners such as Business-
to-Consumer (B2C), Business-to-Business (B2B), Business-to-Government (B2G),
and Consumer-to-Consumer (C2C).
 Model Description Example
B2C Sells products or services directly to consumers. amazon.com
B2B Sells products or services to other businesses or brings metasite.com
multiple buyers and sellers together in a central
marketplace.
B2G Business selling to local, state, and federal agencies. igov.com
C2C Consumers sell directly to other consumers. ebay.com
C2B Consumers fix price on their own, which business priceline.com
accept or decline.

Business Business

Government

Business Business

E-BUSINESS TRANSACTION MODEL:

Business-to-Consumer (B2C):

 B2C e-business includes retail sales, often called e-retail (or e-tail) , and other online
purchases such as airline tickets, entertainment venue tickets, hotel rooms, and shares
of stocks.
 B2C e-business models include virtual malls, which are websites that host many
online merchants.
 Virtual malls typically charge setup, listing, or transaction fees to online merchants,
and may include transaction handling services and marketing options.

Some of the reasons are:

1. Inexpensive costs, big opportunities:

Once on the Internet, opportunities are immense as companies can market their
products to the whole world without much additional cost.
 2. Globalization:
Even being in a small company, the web can make appear be a big player which
simply means that the playing field has been leveled by e-business.
3. Reduced operational costs:
Selling through the web means cutting down on paper costs, customer support costs,
advertising costs, and order processing costs.
4. Customer convenience:
Searchable content, shopping carts, promotions, and interactive and user-friendly
interfaces facilitate customer convenience, thus generating more business.
5. Knowledge management:
Through database systems and information management to find out who visited the
site, and how to create, better value for customers.

How does B2C work?

Customer Identifies a
1. Visiting the virtual mall. need .
2. Customer register.
3. Customer buys products.
4. Merchant processes the order. Searches for the product
5. Credit card is processed. or service to satisfy the
need.
6. Operations management.
7. Shipment and delivery.
8. Customer receives.
9. After sales services. Selects a vendor and
negotiates a price.

Recieves the product or

service (delivery
logistics, inspection and
acceptance).

Makes Payment

Gets service and

warranty claims.
Business-to-Business (B2B):

 B2B is that model of e-commerce where a company conducts its trading and other
commercial activity through the Internet and the customer is another business itself.
This is essentially mean and commercial activity between the companies through the
Internet as a medium.
 This is supposed to be a huge opportunity area on the web. Companies have by and
larger computerized all the operations worldwide and now they need to go in to the
next stage by linking their customers and vendors.
 This is done by supply chain software, which is an integral part of your ERP
applications.

Major advantages of B2B:

 Direct interaction with the customer.

 This is the greatest advantage of e-business. The unknown and faceless
customers including other business, buying the products of large MNC like
say HLL proctor and gamble through distributors, channels, and shops.
 Focused sales promotion:
This information gives authentic data about the likes, dislikes and preference of the
client and thus help the company bring out the focused sales promotions.
 Building Customer Loyalty:
It has been observed that online customers can be more loyal and other customers if
they are made to feel special and they are distinct, identify is recognized and their
concerns about privacy are respected.
 Scalability:
This means that the web is open and offer round-the-clock access. This provides an
access never known before to the customers.
This access is across locations and time zones.
 Saving and distribution costs:
A company makes huge savings in distribution logistical, and after sales cost by using
e-business models.

Tools and Techniques at the Disposable of B2B enterprises:

 Use of a pricing as a code:

There is a wealth of research on pricing used as a tool to generated sales on the
Internet. This is the biggest e-tailor of them all.amazon.com made it big by giving’s
substantial discounts.
 Use of application service provider model:
This is an old model of 1970, which was used among main frames and dump
terminals and which is being revisited with the vengeance.
 Use of generic models which are known for efficiency as well as personalized
attention to various business customers.
 The web has given rise to a new partnership between brick and mortar manufacturers,
e-tailors and express delivery companies like FedEx.
 Use of comparison shopping the Internet has brought a whole new concept of price
matching and comparison shopping.

Elements Benefit
Centralized Market space Neutral and none aligned with either seller /
buyer.
Standard documentation Uses are prequalified and regulated.
Price codes, Price history, and after the sale Pricing mechanism is self regulating.
information are provided.
Confidential transaction between businesses. Clearing and settlement service provider.

Business-to-Business Transactions and Models:

The B2B transactions include the following steps:

1. Review catalogs.
2. Identify specifications.
3. Define requirements.
4. Post request for proposals (REP).
5. Review vendor reputation.
6. Select vendor.
7. Fill out purchase order (PO).
8. Send PO to vendor.
9. Prepare invoice.
10. Make payment.
11. Arrange shipment.
12. Organize product inspection and reception.

Aggregators Hubs

Buyers Sellers

Auctions

Community Contents

The models can be described as follows:

1. Aggregators.
2. Hubs or process integration.
3. Community or alliance.
 4. Content.
5. Auctions or dynamic pricing markets.

Consumer-to-Consumer (C2C):

 The C2C e-business model consumer sell directly to another consumer via online
classified as and auctions, or buy selling personal service are expertise online. Some
of the exchanges are askme.com, inforocket.com.

Consumer-to-Business (C2B):

 The C2B model is the reverse auctions or demand collection model.

 Enables buyers to name their own price, often binding for a specific good or service
generating demand. Example reverseauction.com, priceline.com.

E-BUSINESS MODEL BASED ON THE RELATIONSHIP OF TRANSACTION TYPES:

The business model is essentially ruled by the following two parameters:

On the basis of value addition: value addition is the addition of value to a product or service
because of the opportunities that it offer on the web.
On the basis of control: at the high end of control there is hierarchical control and low end
there is no control, so that it is self-organizing. Normally the control is done through the
policies of the website.
Based on these, nine types of transaction can be identified:
 Brokerage
 Aggregator
 Info-me diary
 Community
 Value chain
 Subscription
 Manufacturer

BROKERAGE MODEL:

 The characteristics of the brokerage model are as follows:

 The price-discovery mechanism is its key-principle.
 It is a meeting point for seller and buyer.
 Auctions and exchanges are mode of transactions.
 It consists of global network of buyers and sellers.
 It is a virtual market space enabled by the internet.
 It encompasses all type of organizations now.

Aggregator Brokerage Value chain

Manufacturer Info-mediary Advertising

Subscription
High

Control

Low

Low VALUE INTEGRATION High

Transaction Model

Advantages of the brokerage model:

 C2c trading:
1. Allows buyers and sellers to trade directly.
2. By passing intermediaries and.
3. Reduce cost for both the parties.
 Global reach.
 Trading convenience, which,
1. Allow trading at all hours.
2. Provide continually updated information.
 Sense of community through direct buyer and seller communications
 Efficient access to information
 Alleviation of the risks of anonymous trading.
Brokerage price discovery mechanisms:
There are three kinds of price discovery mechanisms .they are
1. Auction
2. Reverse auction
3. Market exchange
Some examples of price discovery mechanism, based models are:
 B2B
 B2B sell side fasterparts.com
 B2B buy side freemarket.com
 B2B exchanges covisint.com
 B2B priceline.com
 C2C ebay.com
Some of Indian brokerage sites are:
www.baazee.com
www.automartindia.com
www.indicar.com
Auction broker:
Many different auction formats have emerged since the first auction occurred in Babylon in
about 500 B.C. Today different auction formats are aggregated on certain common
attributes. There are open and sealed bid auctions.
English auction:
 The English auction is one of the most common auction formats.
 It is also known as the open-outcry auction or the ascending –price auction.
 It is frequently used for selling art, wine, and other physical goods which do not have
a limited life-time.
Dutch auction:
 The Dutch auction was developed in the Netherlands to auction flowers and other
products with a limited life.
 It is also known as descending price auction.
 In a Dutch auction the opening price is set extremely very high.
 The price then descends with a predefined amount at the predefined time intervals
until a buyer claims the product to be mine.

First price sales bid auction:

 The first price sealed bid auction has the main characteristics of not being an open-
cry auction, like the English or Dutch auction, and thus the individual bids are hidden
from other bidders.
 This auction has two different phases-a bidding phase, each bidder submits his bids
are opened and the winner is determined. During the binding phase each bidder
submits his bid which is based on his own valuation.
Vickrey auction:
 William vickrey the winner of the 1996 Nobel prize in economics
developed the vickery auction. It is also called the uniformed second-price auction.
 In a vickrey auction the bids are sealed and each bidder bids from his own intuitive
knowledge ignorant of all other bids. What is different in this auction format
compared to the first price sealed bid auction is that the winning bidder will pay the
price of the second highest bid which is the same as the highest unsuccessful bid.

Economic rationality behind auction:

 From a market microstructure perspective auction are basically trading process which
bring buyers and sellers together.
 Auction may be used when other trading procedures fail to work or when a price
discovery process is needed. Two main motives for auctions are identified from an
economical point of view:
 Auctions as a mechanism to determine a price
 Auctions as a distribution allocation mechanism
 Overstocked products which need to be separated from the new incoming products.

ROLE OF BUYER SELLERS AND AUCTIONEER

AUCTION GROUP PRICE DISCOVERY DISTRIBUTION

MECHANISM ALLOCATION
MECHANISM
 buyers To determine an equilibrium To make a bargain to acquire
price to acquire rare items at a products at a low price
reasonable price

seller To determine an equilibrium To off load excess inventory

price to find a customer base to sell products with limited
for rare items life

Auctioneer/ To achieve high trading To achieve high trading

intermediary volumes which will lead to volumes which will lead to
high returns high returns

Impact of web on electronic auctions:

The auctioneer brings together the suppliers and the customers within the auction process.
During the process of transaction trade objects and rule base are needed. The entire auction
process can be executed on the World Wide Web.
Online Auction Model

Bidding
Buyer and seller
registration

Bid evaluation
Setting up a
and auction
particular auction

Trade settlement
Scheduling and
advertising

Functional model of an online auction

Electronic auction seller buyer perspective

There are three different pairs:

1. Consumer-to-Consumer (C2C).
 2. Business-to-Business (B2B).
3. Business-to-Consumer (B2C).

eBay:

 eBay is the world largest personal online trading community. eBay created a new
market an efficient one-to-one trading system in an auction format on the web.
 Individuals not big business use eBay to buy and sell items of more than 4320
categories including automobiles, coins, stamps etc.

SELLERS
BUYERS

eBay

Courier & Postal service

Aggregators:

 Classic Wholesalers and retailers of goods and services increasingly referred to e-

tailers. Sales can be made based on the list of prices or through auctions.
Some of the aggregate models:
1. Virtual merchant.
2. Catalogue merchant.
3. Surf and turf.
4. Bit Vendor.
5. Subscription model.

What do Aggregators do?

Based on the electronic marketplace the aggregator model bypasses distributors so that the
buyers and sellers come together.
SELLERS

BUYERS

Aggregators

There are four types of aggregators:

1. Content aggregator:
They are among the first large scale sites on the web and mostly represent large
publishing companies. Example pathfinder.com.
2. Mainstream Aggregators:
 This includes the sites like yahoo providing a web directory and search engine along
with the bunch of attractive tools like e-mail address.
3. Event Aggregators:
There are sites that provide in-depth content and tools tailored to the need of a
particular group. Example mortgages-build tool, rates.
4. Shopping Aggregators:
Shopping Aggregators let consumers roam through hundreds of sites and catalogues
and find the best price in seconds. Example compare.com, and bizrate.com.

The capabilities needed for this model:

1. Greater investment handling finished goods.

2. Management of more traditional distribution network with truckload.
3. Optimization of stores to support customer visits to view new products.
4. Integration of existing retailers with the online channel for sales to the e-consumers.
5. Handling the same day delivery of goods and pickup returns.

Virtual shop:
Not a physical store for walk-in-customers. Example  for bookshop the web site in
Internet bookseller is Amazon.com.
Building and maintaining the virtual shop:
With business to customer type E-commerce, the company first establishes a website
on internet. Then the company put up the information about the products and services and
also provide customer support services. After that the company must inform the public about
its existence using traditional means of advertising like commercials, adverts, brochures and/
or online advertising.

Consumer PC 1

2 Merchant Server

Internet
Encrypted secure
33 Seller authentication
63
Digital signature
Bank payment centre
4

5
Merchant Bank Cardholder’s Bank
 HINTS
Electronic commerce
 Methodology of modern business,
 Paperless exchange of business information
Frameworks
o Infrastructure
Hardware, software, databases and communications
o Services
Wide range of services
o Products and Structures
Direct provision of goods, services

Emergence of the Internet

 network model to connect
 Transfer files between computers, and Telnet.
Emergence of the WWW
Origins of the Web:
rapid commercialization and technical change.
Advantages of E-Commerce
 24 x 7 Operation:
 Global reach:
 Cost of acquiuring, serving and retaining customers
 An extended enterprise is easy to build:
 Disintermediation:
E-transition Challenges for Indian Corporate.
 Internal Resisting Issues
 Bureaucratic wrangles
Transforming themselves, the old ways of doing things are being replaced by
new ways
 Cultural changes
 Organization mostly consists of young, externally recruited.
 Not many are prepared
20 percent of the organizations covered under the CIO segment
 Lack of skill and training:
Impending the implementation of IT in companies.
 External Driving Factors:
Sheer necessity-processing time for a transaction.
 Big business, the driving factor
 Global Market
 Value for money
 B2C growth in the Indian market.
 No-entry barriers

Business Model
i.) Matching buyers and sellers.
ii.) Facilitating commercial transactions, and
iii.) Providing legal infrastructure.

Model Description Example

B2C Sells products or services directly to consumers. amazon.com
B2B Sells products or services to other businesses or brings metasite.com
multiple buyers and sellers together in a central
marketplace.
B2G Business selling to local, state, and federal agencies. igov.com
C2C Consumers sell directly to other consumers. ebay.com
C2B Consumers fix price on their own, which business priceline.com
accept or decline.

E-business Models based on the Relationship of Transaction Types

 On the basis of value addition: value addition is the addition of value to a product or
service
 On the basis of control: at the high end of control there is hierarchical control and
low end
4

UNIT –I
2 MARKS:

1. Define the term “E-Commerce”? (APRIL/MAY 2015)

2. Difference between B2B and B2C? (APRIL/MAY 2015)
3. What is the goal of LDAP? (APRIL/MAY 2015)
4. What is mean B2B?
5. Define WWW?
6. What are the benefits of internet?
7. Give an expansion for B2B and B2C(APRIL/MAY 2016)
8. What is EDI? (APRIL/MAY 2016)

5 MARKS:

1. Explain the various topologies of computer network? (APRIL/MAY 2015)

2. What is E-mail? Explain the main components of E-mail system? (APRIL/MAY
2015)
3. What is the advantage of E-Commerce?
4. How TCP/IP works? (APRIL/MAY 2016)
5. Explain the function of router (APRIL/MAY 2016)
6. Explain the Relationship of Transaction Parties?
7. Define E-business Models?
8. List out the Transaction Types?

10 MARKS:

1. Discuss about the X.400 Message Handling System? (APRIL/MAY 2015)

2. Write a detailed note on future of internet (APRIL/MAY 2016)
3. Define History of E-commerce and Indian Business Context?
 4. What is the Emergence of the WWW?
5. What are the E-transition Challenges for Indian Corporate?

UNIT-II

ENABLING TECHNOLOGIES OF THE WORLD WIDE WEB

WORLD WIDE WEB

 The World Wide Web (abbreviated Web, WWW or W3) is a system of internet
servers that supports hypertext to access several internet protocols on a single
interface.
 The World Wide Web provides a single interface for accessing all these protocols.
This creates a convenient and a user-friendly environment.
 The operation of the web relies primarily on hypertext as its means of information
retrieval.
 Hypertext is a document containing words that connect to other documents.
 Hypertext for the web is created by documents written in Hyper Text Markup
Language (or) its various offshoots. With HTML , tags are placed within the text to
accomplished document formatting such as font size, font style, and visual features
like images, animations and creation of hypertext links.
INTERNET CLIENT-SERVER APPLICATIONS
 The users of the internet interact through one of the several client-server applications.
 As the name suggests, in a client-server application there are two major classes of
software-the client software.
 Which usually exists on an end-user's desktop and provides navigation and display.

CLIENT-SERVER APPLICATIONS
Application Protocol Purpose
World Wide Web Hyper Text Transport Offers access to hypertext
documents, Protocol (HTTP) executable programs,
and other
Internet resources.

E-mail Simple Mail Transport Protocol Allows the transmission of text

(SMTP) message and binary
attachments
across the Internet.
Post Office Protocol version3
(POP 3)
Multipurpose Internet Mail
Extensions (MIME)

File Transfer File Transfer Protocol(FTP) Enables files to be uploaded

and
downloaded across the
Internet.

Chat Internet Relay Chat Provides a way for users to talk

to one another in real-time over the
Internet.
The real-time chat groups are called
channels.

Use Net Newsgroups Network News Transfer Discussions forums where users can
Protocol (NNTP) asynchronously post messages and read
messages posted by others.

 E-mail allows computer users to exchange messages Worldwide.

 Each user of e-mail has a mail box address or user account identity, with which all
main transactions are done.
TELNET
 Telnet is a program that allows you to log into computers on the internet and use
online database, library catalogs, chat services and more.
 To telnet to a computer, you must know its address.
 It is a protocol or set of rules
 It enables one computer to connect to another computer. This process is referred to as
remote login.
  When the user types command, they are executed on the remote computer. The user’s
monitor displays what is taking place on the remote computer during telnet session.
 Many resources, such as library catalogs, are available via telnet without an account
and password.
 It allows the user to access Internet resources on other computers around the world.

FILE TRANSFER PROTOCOL (FTP)

 It is part of the TCP/IP protocol suite.
 It is the protocol or set of rules, which enables file to be transferred between
computers.
 Files that can be transferred are stored on computers called FTP servers.
Steps to use FTP are:

1. Connect to the FTP server.

2. Navigate the file structure to find the file you want.
3. Transfer the file.

Wide varieties of files that are available through FTP are:

 Shareware: software that can use free for a trial period but they pay a fee for it
later.
 Freeware: completely free software e.g.: clipart, fonts and games.
 Upgrades and patches: upgrades to current software and fixes for software problem.
 Documents: It includes research paper, articles and Internet documents.
 Files on FTP servers are often compressed. Compression means decreasing the file
size. It is a good idea to have current virus checking software before files are transferred to
computer.

 Anonymous FTP is an option that allows users to transfer files from thousands of host
computers on the internet to their personal computer account.
 FTP sites contain books, articles, software, games, images, sounds, multimedia,
course work, datasets, and more.
 FTP transfers can be performed on the World Wide Web even without a special
software.
CHAT ON THE WEB
 Chat programs are now common on the web.
 They are sometimes included as a feature of a website, where users can log into the
"chat room"
to exchange comments and information about the topics addressed on the site.
 Chat may take other, more wide-ranging forms.
IRC
It is a multi-user chat system that allows many people to communicate across the
Internet.

- Developed by Jarkko Oikarinen in 1988

- Chats take place on channels, which are the virtual locations on IRC networks where
users meet to talk to one another.
- Channels have different modes, most channels are public, but talk on a private or
secret channel.
- To take part the needs are
 Run a client program on pc while connected to the Internet
 IRC is organized in networks.
 Each network consists of a series of servers that constantly relay chat back and
forth among themselves.
 The server relays information to and from other servers on the same net.
 Some of the recommended clients are:
 UNIX/shell: ircII
 Windows: mIRC(or)PIRCH
 Macintosh: Ircle
ICQ
 As the name implies, ICQ or 'I Seek You' is simply a smart way of getting in touch
with people.
 This small program takes up the complicated work of finding friends, colleagues and
people with similar interests across the globe, and makes it as straight forward as
calling across a room and starting a friendly conversation.
IDENTIFYING DATA TYPES WITH MULTIPURPOSE INTERNET MAIL EXTENSIONS (MIME):
 HTTP utilizes MIME to identify the type of object being transferred across the
internet.
  Object types are identified in a header field that comes before the actual data for the
object.
 Under HTTP, this header field is the content-type header field.
 By identifying the type of object in a header field , the client receiving the object can
appropriately handle it.
 For example, if the object is a graphic interface image, the image will be identified by
the MIME type of image/GIF.
NETWORKS AND INTERNETS
 A computer network consists of two or more computers that are connected to each
other using cables and other network devices that handle the flow of data.
 When you connect two or more computers together, you form a network.
COMMUNICATION SWITCHING
 Communication switching, computer networks allow computers to transfer data using
shared lines of communication such as cable.
 Communication switching works similar to telephone switching networks.
 A telephone switching network eliminates the need to connect a wire between your
telephone and every telephone you may ever call.
 Networks use two common methods of communication switching to transfer data-
circuit switching and packet switching.
 In circuit switching, the switches create a single, unbroken path between devices that
want to communicate.
 Most computer networks, including the internet, do not use circuit switching. They
use a technical called packet switching.
 In a circuit-switched network, the connection provides for transmission at a constant
data rate.
 In packet switching, data are transmitted in short packets. A typical upper limit on
packet length is 1 kilobyte.
 In packet-switched networks. Breaking one patch does not prevent the data from
reaching its destination.
 The packet will simply find a different path.
 Each packet must contain its destination address.

DEVELOPMENTS IN TRANSMISSION
 The internet is measured by the capacity of its cables to carry information bits to
users; this carrying capacity is called bandwidth.
 Each of these lines must support hundreds or even thousands of simultaneous users.
 In contrast, most home users dial into internet through telephone network, at
narrowband rates.
 The modems on their computers are connected to a "twisted pair" of copper phone
wires that can transmit at the rate of 14,000 to 56,000 bps.
 The internet can also be accessed at mid band speeds of 128,000 bps or more.
  Two of the mid band technologies-asymmetrical digital subscriber line and integrated
services digital network-use wires to connect users to the internet through a telephone
system.
NETWORK ROUTERS
 Network designers use routers to transfer or route data between networks that use
different network technologies.
 The internet is comprised of various networks that use many different Network
Technologies, routers are an integral part of the internet.
 A router has an address on the network. Using the addressing capability of routers, the
nodes on a network can send packets destined for another network to a router.
 To manage network traffic, network designers also use routers to segment large
sections of a LAN to smaller segments, called subnets.
 Using a routing table, routers can look up the correct path from the packets current
location to any destination on the network.
Connectionless Vs Connection-oriented Protocols
 Connectionless protocols differ from connection-oriented protocols in the way
requests and responses to requests are handled.
 With a connectionless protocol, clients connect to the server, make a request, get a
response, and then disconnect.
 With a connection-oriented protocol, clients connect to the server, make a request, get
a response, and then maintain the connection to service future requests.
 An example of a connection-oriented protocol is FTP.
 In contrast, HTTP is a connectionless protocol.
Signal Bandwidth
 The primary limit on any communications channel is its bandwidth.
 Bandwidth merely specifies a range of frequencies, from the lowest to the highest,
that a channel can carry or that are present in the signal.
Channel Bandwidth
 This channel bandwidth may be physically limited to the medium used by the channel
or artificially limited by communications standards.
 In wire-based communications channels , bandwidth is often limited by the wires.
 Most of the telephone channels have an artificial bandwidth limitation imposed by the
telephone company.
 To get the greatest financial potential from the capacity of their transmission cables,
microwave systems, and satellites, telephone carriers normally limit the bandwidth of
telephone signals.
THE INTERNET PROTOCOL SUITE
 A protocol is defined as a set of rules governing the exchange of data between two
entities.
 The key elements of a protocol are:
1. Syntax, which includes such things as data format and signal levels.
2. Semantics, which includes control information for coordination and error
handling.
 3. Timing, which includes speed matching and sequencing.
 The internet was designed to embody a series of design principles, which are as
follows:
1. INTEROPERABLE: Here, the system supports computers and software from
different
vendors.
2. LAYERED: In this, the collection of internet protocols works in layers, with each
layer
building on the layers at lower levels.
3. SIMPLE: This principle states that each of the layers in the architecture provides
only a few un actions or operations. This means that application programmers are
hidden from
the complexities of the underlying hardware.
4.END-TO-END:here,the internet is based on 'end-to-end’ protocols. This means
that
interpretation of data happens at the application layer and not at the network
layer.
IP Address System
 A standard IP header is around 20 bytes. There are options to add more bytes.
 Ver stands for versions, which is IP version 4.
 IHL stands for internet header length. Typically it is 5 bits. However, it has two
bytes available and therefore the longest header is 60 bits.
 TTL is time to live. Maximum is 255 seconds.
32 bits

Ver IHL Type of Service Total length

Identification Flags Fragment Offset

Time to live protocol Header Checksum

Source address

Destination address

IPv4 structure
 Depending on the size of the network, the IP-based networks are divided into three
classes:
1. Class A. These networks have their network addresses from 1.0.0.0 to 126.0.0.0, with
the
 zeros being replaced by node addresses.
Class A networks are mega monster networks, with up to 16 million plus connections.
2. Class B. These are smaller networks in comparison ,i.e , they can have only about
65,000
nodes! Network addresses for these range from 128.0.0.0 to 191.0.0.0.here the last
two zeros
get replaced by the node addresses.
3. Class C. These are the baby networks that can have only 254 nodes at the maximum.
The network IP addresses for these range from 192.0.0.0 to 223.0.0.0.

CLASSES OF NETWORKS
Type Example Explanation

Class A 125. 100.100 The part within the box is the network part of
the IP
address , and the rest identifies a unique node
or
Class B 190.100. 100.100 interface on that network. You can identify the
class of the network from the first of the four
numbers
Class C 220.100. 100. 100 that form the IP address.

Subnet Masks
 In an IP network, every machine on the same physical network sees all the data
packets sent out on that network.
 The default subnet mask for class A networks is 255.0.0.0,for class B it is 255.255.0.0
and for class C 255.255.255.0,which signify a network without subnets.
The address blocks are:
Class A: 10.0.0.0
Class B: From 172.16.0.0 to 172.31.0.0
ClassC: From 192.168.0.0 to 192.168.255.0.
 NUMBER OF MACHINES ON EACH SUBNET

Number of machines Class of network Network addresses

to be connected

254 or less C 192.168.0.0 to 192.1678.255.0

255 to 65.534 B 172.16.0.0 to 172.31.0.0
65.535 to 16.777.214 A 10.0.0.0

Translating IP Numbers to User-friendly Domain Names

 In the early days of the internet, hosts files were used to associate machines with
names.
 The DNS is a distributed, scalable database of IP addresses and thier associated
names. It is distributed in the sense that unlike the hosts files, no single computer.
 DNS data is distributed across many name servers it is scalable in the sense that you
can increase the volume of total DNS data and requests from machines for the same
data, without significantly increasing the querying time.
THE INTERNET NAMING CONVENTIONS
 The Internet is divided into a number of registries or Top Level Domains (TLDs).
 The Internet naming conventions call for the type of website to be identified by the
registry-the portion after the dot in any web address.
For example, the sites that comes under the .com registry are commercial sites or sites
belonging to commercial organizations.
UNIFORM OR UNIVERSAL RESOURCE LOCATORS (URLS)
 The URLs provide a uniform way of identifying resources that are available using
Internet Protocols (IP).
 The protocol name is generally followed by a colon and two forward slashes.
 The colon is a separator.
 The double slash marks indicate that the protocol uses the format defined by the
Common Interest Scheme Syntax (CISS).
 The CISS is a common syntax for URL schemes that involve the direct use of IP-
based protocols.
 These protocols specify a particular host on the internet by a unique numeric identifier
called an IP address or by a unique name that can be resolved into the IP address.
 Here are two general formats:
 1.protocol://hostname: port/path to resource.
 2.protocol://username: password@hostname:port/path to resource.
 The common domain names for web servers begin with WWW, such as
www.xlri.com,which identifiers the web server called xlri in the commercial domain.
 Domains you can specify in your URLs include:
 com-commercial sites
 edu-educational sites
 gov-nonmilitary government sites
  mil-military sites
 net-network sites
 org-organizational sites
Defining Port Information in URLs
 Ports are rather like telephone jacks on the web server.
 The server has certain ports allocated for certain things, for instance, port 80 is for
incoming requests for hypertext documents.
PORTS FOR PROTOCOLS
Protocol Port

File Transfer Protocol (FTP) Port 21

Gopher Port 70
HTTP Port 80
Network News Transfer Protocol(NNTP) Port 119
Telnet Port 23
Wide Area Information Server(WALS) Port 210
Defining Protocol Schemes
URL SCHEMES ASSOCIATED WITH EACH PROTOCOL
Protocol Full protocol name Example
acronym
FTP File Transfer Protocol ftp://username:password@hostname:port/
Gopher Gopher protocol gpher://hostname:port/path-to-resource
HTTP HypherText Transfer http://hostname:port/path-to-resource
Protocol
Mailto Electronic mail address mailto:username@host
Usenet news News news:newsgroup-name news:message-number
NNTP Usenet news accessed with nntp://hostname/newsgroup-name
Network News Transfer
Protocol
WAIS Wide Area Information wais://hostname:port/database
Service
telnet Remote login sessions telnet://username:password@hostname:port
File Files on local host file://hostname/path-to-resource

Defining URLs
 The URLs consist of characters defined by the ASCII character set.
 The URL specification allows the use of uppercase and lowercase letters.
1.Colon (:)
 The colon is a separator.
  It separates the protocol from the rest of the URL
scheme,e.g.http://xlrifound.html .
 It separates the host name from the port number as in http://www.xlri.com:80/.
 Also,it separates the user name from the userid,as you can find in
ftp://anonymouse:[email protected]/.

SPECIAL CHARACTERS USED IN URLS

Character Symbol

Asterisk *
Dollar Sign $
Exclamation Point !
Hyphen -
Parenthesis (left and right) ()
Period .
Plus sign +
Single quotation mark ‘‘
Underscore -
2. Double Slash (//):
 They indicate that the protocol uses the format defined by the CISS.
 They separate the protocol from the URL scheme.
3. Single Slash (/):
 This is used to separate the path from host name and port.
 The slash is also used to denote the directory path to the resource named in the URL,
e,g. http://xlri.com/xlrihp.html.
4. Tilde (~):
 This is generally used at the beginning of the path to indicate that the resource is in
the specified user's public html directory, e.g. http://www.aloha.com/tilde Joseph.
5. Percentage (%):
 This identifies an escape code.
 Escape code book %20table%20of%20 contents are used to specify special characters
in URLs which otherwise have a special meaning, or are not allowed for access.
6. At(@) Symbol:
 This is used in mail accounts to identify the site to which the mailer belong, as in
mailto:[email protected].
 It separates the user name and/or password information from the host name in the
URL.
7. Question (?) Mark:
 This is used in the URL path to specify the beginning of a query string.
 Query string are passed to CGI script.
  All the information following the question mark is the data that the user has submitted
and so are not interpreted as part of the file path. e.g./usr/cgi/useit.p1?keyword.
8. Plus(+) Sign:
 This is used in query strings as a place-holder between words, e.guseit.p1?
word1+word2+word3.
 Instead of using spaces to separate words that the user has entered in the query, the
browser uses the plus sign.

9. Equal (=) Sign:

 This is used in query strings to separate the key assigned by the publisher from the
value entered by the user,e.g.useit.p1?username= Joseph.
 Here, the user name is the key assigned by the publisher and the value entered by the
user is Joseph.
10. Ampersand (&) Sign:
 This is used in query strings to separate sets of keys and values, e.g p1?name-
joseph&question.
 In this sample URL, name is the first key assigned by the publisher and the value
entered by the user id Joseph.
 The second key assigned by the publisher is a question, and the value entered by the
user is "why not".
TRANSMISSION CONTROL PROTOCOL (TCP):
 All computers that connect to the Internet, run TCP/IP software.
 TCP automatically checks for lost datagram and handles the problem.
 The internet has a complex structure with multiple paths that datagram can travel.
 TCP automatically checks the incoming datagram and puts the data pack in order.
 There are exactly two end points communicating with each other on a TCP
connection.TCP provides reliability by doing the following:
1.the application data is broken into what TCP considers the best sized chunks to
send.
2.When TCP sends a segment it maintains a timer, waiting for the other end to
acknowledge the reception of the segment.
3.when TCP receives data from the other end of the connection, it sends an
acknowledgement.
4.TCP maintains a checksum on its header and data. This is an end-to-end checksum
whose purpose is to deduct any modification of the data in transit. If a segment
arrives with an invalid checksum.
TCP/IP Protocol Suite Architecture:
 A protocol suite, such as TCP/IP, is the combination of different protocols at various
layers.
 TCP/IP is normally considered to be a four layer system.
 Each layer has a different responsibility, listed as follows:
1. The link layer, sometimes called the data-link layer or network interface layer,
normally
 includes the device driver in the operating system and the corresponding network
interface card in the computer.
3. The network layer handles the movement of packets around the network. Routing
of packets, for example, takes place here. Internet Protocol provides the network
layer in the TCP/IP protocol suite.

Application Layer
(FTP,HTTP,Telnet,NNTP)

Transport Layer

Transmission Control
Protocol User
(TCP) Datagram Protocol
(UDP)

Network Layer

Layering of TCP/IP
3. The transport layer provides a flow of data between two hosts, for the application
layer
above. In the TCP/IP protocol suite, there are two vastly different protocols:
 TCP
 UDP

Encapsulation:
 Encapsulation is the packaging of attributes and functionality to create an object,
essentially the one whose internal structure remains private, through accessible by
other objects through a clearly defined interface.
Protocol Interfaces: Interfaces

FTP SMT Telnet Other

Applications
 TCP/IP protocol suite
 Each layer in the TCP/IP protocol suite interacts with its immediate adjacent layers.
 At the source, the process layer makes use of the services of the host-to-host layer and
provides data down to that layer.
Search Engines:
 The internet today contains billions of websites, which is analogues to a library
having billions of books.
 This list of websites is getting longer every second.
History of the Search Engines:
 The first of all search engines was Archie, created in 1990 by Alan Emtage, a student
at McGill University in Montreal.
 The author originally wanted to call the program "archives".
 In 1990, there was no world wide web. Nonetheless, there was still an internet, and
many files were scattered all over the vast network.
How Do The Search Engines Work:
 All search engines have what are called "robots" or "spiders", which spend their
time going from link to link across the internet.
 They may have the ability to search by some or all of the following search methods:
key searching
 concept-based searching
 refining the search
 relevancy ranking
 meta tags
Keyword Searching
 This is the most common form of text search on the web.
 Most search engines do their text query and retrieval using keywords.
Concept-based Searching
 The concept-based search systems try to determine what you mean, not just what you
say.

Refining The Search

 Most sites offer two different types of searches-"basic" and "advanced".
  In a "basic" search, you just enter a keyword without sifting through any pull-down
menus of additional options depending on the engine though, "basic searches can be
quite complex.
SOFTWARE AGENTS
 Different users are represented by autonomous software agents interconnected via the
internet.
 The agents act on behalf of their human users/organizations to perform information
gathering tasks, such as locating and accessing information various sources, filtering
unwanted information, and providing decision support.
INFORMATION OVERLOAD:
 The information overload can be illustrated with the example of Sun Microsystems
which reports that employees receive on an average over 100 e-mail messages a day.
 The web has provided end users with 'point-and-click' applications that enable them to
browse and navigate through gigabytes and terabytes of data to their heart's content.

VALUE OF SOFTWARE AGENTS IN A NETWORK WORLD:

 An agent can be defined as one that acts or exerts power, it can be autonomous,
intelligent, collaborative, adaptive, computational entity.
 Intelligent agent is an agent, which has the capability to deal with new and trying
situations.
 Intelligent agent is a software program that uses agent communications protocols to
exchange information for automatic problem solving.
 Software agents have synonyms including knowbots, softbots, taskbots, userbots,
robots, personal agents, autonomous agents, and personal assistants.
A TYPOLOGY OF AGENTS
 Firstly ,the agents may be classified by their mobility, i.e.by their ability to move
around some networks.
 Secondly, they may be classed as either deliberative or reactive.
 Deliberative agents device from the deliberative thinking paradigm: the agents
possess an Internal, symbolic, reasoning model.
 Thirdly, agents may be classified along several ideal and primary attributes which
they need to exhibit. Some of them are: autonomy, learning and cooperation.
A PANORAMIC OVERVIEW OF THE DIFFERENT AGENT TYPES:
 Let us now have an overview of the different agent types in figure:

Collaborative learning agents

Smart agents
Learn
Cooperate

Autonomous
 Interface agents
Collaborative agents

A partial view of agent typology

Heterogeneous agent
Smart agents Hybrid agents
systems

Information agents Agent Typology Reactive agents

Collaborative agents Interface agents Mobile agents

Classification of software agents

Collaborative Agents:
 Collaborative agents emphasize autonomy and cooperation in order to perform tasks
for their owners.
 The general characteristics of these agents include autonomy, social ability
responsiveness and pro-activeness.
 The motivation for having collaborative agent systems may include one or several of
the following:
 1.to solve problems that are too large for a centralized single agent to do due to
resource limitations or the sheer risk of having one centralized system.
2.To allow interconnecting and interoperation of multiple existing legacy systems,
e.g. expert systems, decisions support systems, and so forth.
3.To provide solutions to inherently distributed problems, e.g. distributed sensor
networks or air-traffic control.
4.To provide solutions in the form of distributed information sources, e,g. For
distributed online information sources it is natural to adopt a distributed and
collaborative agent approach.
5.To provide solutions where the expertise is distributed, e.g.in healthcare
provisioning.
Interface Agents:
 Interface agents emphasize autonomy and learning in order to perform tasks for their
owners.
 The key metaphor underlying interface agents is that of a personal assistant who is
collaborating with the user in the same work environment.
Mobile Agents:
 Mobile agents are computational software processes capable of roaming WANs such
as WWW, interacting with foreign hosts, gathering information on behalf of their
owners, and coming back home, having performed the duties set by their users.
 BENEFITS:
1. Reduced communication costs
2. Limited local resources
3. Easier coordination
4. Asynchronous computing
5. Natural development environment
6. A flexible distributed computing architecture
7. Rethinking on design process
Information/Internet Agents:
 Information agents have come about because of the sheer demand for tools to help us
manage the explosive growth of information we are currently experiencing, and which
we will continue to experience henceforth.
 Interface or collaborative agents started out quite distinct, but with the explosive of
the overlapping.
Reactive Software Agents
 Reactive agents represent a special category of agents which do not possess internal,
symbolic models of their environments, instead they act/respond in a stimulus-
response manner to the present state of the environment in which they are embedded.
Hybrid Agents:
 Hybrid architectures are still relatively few in number but the cause for having them is
overwhelming.
 There are usually three typical criticisms of hybrid architectures in general.
  Firstly, hybridism usually translates to ad hoc or unprincipled designs with the al its
related problems.
 Secondly, many hybrid architectures tend to be very application-specific.
 Thirdly, the theory which undermines the hybrid systems is not usually specified.
Heterogeneous Agent Systems:
 Heterogeneous agent systems, unlike hybrid systems described in the preceding
section, refer to an integrated set-up of at least two or more agents which belong to
two or more different agent classes.
 A heterogeneous agent system may also contain one or more hybrid agents.
Smart Agents:
 Smart agents are those agents which can learn, co-operate, and are autonomous.
INTERNET STANDARDS AND SPECIFICATIONS:
 The ultimate authority for the technical direction of the internet rests with the internet
society.
 This professional society is concerned with the growth and evolution of the
Worldwide internet, with the way in which the internet is and can be used, and with
the social, political and technical issues


Internal Society (ISOC)

Internet Architecture Board (IAB)

Internet Engineering Steering Group (IESG)

Internet Engineering Task Force (IETF)
(Area Directors, IETF Director, IAB Liaisons)

Area Director Area Director

WG WG … WG WG

Internet administrative structure

 The four groups in the structure are the ISOC and its board of trustees, the IAB, the
IESG, and the IETF.
  The area directors work with their working groups.
 The IETF is divided into eight functional areas such as:
1. Application 5. Security
2. Network management 6.Transport
3. Operational requirement 7. User services
4. Routing 8. Internet
THE EVOLUTION OF STANDARDS AND SPECIFICATIONS:
 Why do we need standards and specifications? With the amount of activity going on
in the internet, where there are a millions of websites running on different platforms.
 these standards form the basis for the information that is transferred to the internet.
THE ROLE OF DOCUMENTATION:
 The beginning of the ARPANET and the internet in the university research
community promoted the academic tradition of open publication of ideas and results.
 The task of the RFCs was to create a positive feedback loop, with ideas or proposals
presented in one RFC triggering another with additional ideas, and so on.

INTERNET SERVICE PROVIDERS(ISP):

 The US government 1991 decision to end subsidizing the NSFNET backbone
beginning in 1995, sparked a massive restructuring aimed the internet into a faster and
a more productive tool for the business.

E-mail News Application WWW

server server server server

Modem

Dial-up
terminal Modem
server

Modem
Billing
server

ISDN Modem
server

Router Modem
ISP
 Architecture of public access providers

 Commercialization of the internet has taken place in two spheres: commercialization

of users and commercialization of ISPs.
 From a physical standpoint, the internet is a network of thousands of interconnected
networks. Included among the interconnected networks are:
1. The interconnected backbones that have international reach
2. A multitude of access/delivery sub-networks
3. Thousands of private and institutional network connecting various organizational
servers and containing much of the information of interests.

ISP
ISP
ISP

ISP

NAP ISP
ISP

NAP
NAP

ISP

ISP
ISP

NAPs and ISPs

ISPS IN INDIA:
 Internet access, in a sense, came into India in the early 1990s.
  The ERNet project was designed to provide internet connectivity to the premier
educational and research institutions of India, while NICNet was assigned the
provision of internet services primarily to government department and organizations.
 NICNet was designed to provide V-SAT and dial-up internet access primarily to
government departments.

ISPs having All-India Licence Include

BSNL CMC RPG Infotech Essel Shyam

Communication
Sify Siti Cable Network Gateway Syste(India) World Phone Intenet
Services
VSNL Guj Info Petro Hughes Escorts Astro India Networks
Communication
Reliance Primus Telecommu- ERNET India RailTel Corporation
Nications India

Data Infosys GTL Jumpp India L&T Finance

HCL Infinet Primenet Global Tata Internet Services Tata Power Broadband

Bharati Infotel Pacific Internet India In2Cable (india) Reliance Engineering

Association
BG Broad India Swiftmail Estel Communication Bharati Aquanet
Communications

Trak Online Spectra Net Reach Network India i2i Enterprise

Net India
Tata Tele- Comsat Max Gujarat Narmada HCL Comnet Systems and
services Valley Fertilizers Services
(Maharastra) Corporation

TERMS RELATED TO ISPS:

 There are some terms exclusive for ISPs.
Shell Access:
 Internet access supporting only textual interfaces, with Unix or Unix-like OS
commands.
 This requires "logging in" to a Unix-type user account, and then Os via textual
commands or text-based many systems.
Dial-up Modem:
  This device is connected between a computer or a data terminal equipment and a
conventional POTS analog telephone line.
Serial Line Internet Protocol(SLIP)
 SLIP is one of the popular for IP access over dial-up and analog leased lines.
 Now commonly superseded by point-to-point protocol, it is still used by some ISPs.
Very Small Aperture Terminal(V-SAT):
 V-SAT is a satellite-based digital communication system usually consisting of 1.8
meter diameter satellite dishes establishing point-to-point connections.

ISP POLICY OF THE GOVERNMENT OF INDIA:

 Given the rapid growth of internet across the world and in India, the government
came out with an internet policy to promote the same.
 The key features are:
 Any company incorporated in India is eligible to set up an ISP.
 The foreign equity holding should be limited to 49 per cent.
 License period would be for 15 years.
 There is no license fee for the first five years and Re 1 per annum for
subsequent years.
 There will be different licences for different areas. For this purpose, the entire
country has been divided into three categories:
 Category 'A'-the whole of India
 Category 'B'-comprises 20 telecom circles in cities like Delhi ,Mumbai,
Kolkata , Chennai, Ahmedabad, Bangalore, Hyderabad, and Pune.
 Category 'C'-covers the secondary-switching areas of DOT.
MAJOR ISP PLAYERS IN INDIA:
 Videsh Sancher Nigam Limited (VSNL)
 Satyam Infoway
 DishnetDSL
 Mahanagar Telephone Nigam Limited(MTNL)
BROAD BAND TECHNOLOGIES:
 Broadband access can be through any medium-copper, fiber, or wireless.
TYPES OF BROADBAND TECHNOLOGIES:
 Broadband technology refers to the means by which access can be made speedier.
Digital Subscriber Line:
 Integrated services digital network was offered in the mid 1990s with moderate
success.
 DSL has gained wide success. It is comprised of two basic parts: a head-end device,
called a digital subscriber line access multiplexer, and a DSL modem/router, which is
found at the subscriber location.
Cable Modems:
 Cable modem technology utilizes the Hybrid Fibre Coax (HFC) or the all-coaxial
infrastructure of the local cable provider.
  Cable modems and cable head-end devices usually to the data over cable service
interface system(DOCSIS) initiative.
 The cable modem provides an Ethernet port for connectivity to the customers PC or
network.
Passive Optical Networks(PAN)
 Passive optical networks are access networks in which fibre trunks are fed towards
end points and split into multipoint trees along the way, until reaching a termination
of the fibre run.
 A PON consists of Optical Line Termination (OLT)and optical network unit(ONU)
equipment.
Wireless LAN and LMDs:
 Local multipoint distribution service and IEEE802.11 represents a growing popularity
of non-terrestrial network systems.
 While they both employ the use of radio frequencies, they are vastly different in both
intent and deployment.
 Early in 1998,the FCC held an auction of the wireless spectrums in the range of 28-31
GHZ, which were to be utilized for LMDS implementations.
 This accomplished two things-generating over a half-billion dollars of revenue for the
FCC, and opening up real competition in the local loop.
Asynchronous Transfer Mode(ATM);
 ATM emerged in the early to mid-1990s as a telecommunication grown technology
that was being pushed to the enterprise LAN.
 Simply explained, ATM is a layer2 technology that establishes connection-oriented
Virtual Circuits (VC)across the network.
 VCs can either be manually configured, using permanent virtual circuits(PVCs),or
setup and torn down dynamically as needed, using switched virtual circuits(SVCs).
 Once a connection established, data packets are segmented into 53-byte cells.

10/100/1000 Mbps Ethernet:

 Ethernet has enjoyed phenomenal success in enterprise LANs since its inception in
the early 1980s.
 Today, well over 90 per cent of deployed networks are based on this solid and
standardized technology.
 It has grown from a shared 10 mbps technology.
 IEEE 802.3-ethernet(10mbps)
 IEEE 802.3u-Fast Ethernet (100mbps)
 IEEE 802.3z-gigabyte Ethernet (1000mbps)
 IEEE 802.3ae-10 Gbps Ethernet (10gbps):standard under development
 to bring all the texts you receive into an indistinguishable aggregate of nodes and
links.
 There would be no one central individual text with the others relegated to comments
on, yet the whole could also be read as an integrated, communal discourse not co-
authored in the traditional way, but conjoined by the editor's activities.
  The natural mode of hypertext is compilation rather than linear creation.
 Hypertext documents are chiefly made up of links to other documents, or other lists of
link's.
 Every file, site, movie or sound file, or anything on the web has a unique URL to
identify in which computer it is located., Where it is within that computer ,and its
specific file name.
 Hypertext markup language(HTML) is a powerful document -processing
language.HTML is not a programming language; thus, you do not have to be a
programmer to create HTML documents.
 HTML documents are plain ASCII text files.

<HTML>
<HEAD><TITLE>sample Webpage</TITLE></HEAD>
<BODY>
<P>Company phone:0657-225506</P>
<P>Company Web site:http://www.xlri.com</P>
<PCompany fax:0657-227814</P>
<P>Human relations: [email protected]</P>
</BODY>
</HTML>
CREATING AND VIEWING YOUR FIRST HTML DOCUMENT:
 To create HTML document, perform the following steps
1. Use a text editor, such as windows notepad, to create a new document.
2. Next, type in the following HTML tags into the new document:
<HTML>
<HEAD>
<TITLE>your document heading</H1>
</HEAD>
<BODY><H1>your document heading</H1>
<P>hello, this is my first text HTML paragraph</P>
</BODY>
</HTML>
3. Save the document as sample.HTML.
 To view your first HTML document, perform the following steps:
1. Start your browser.
2. Within the URL field, type in the complete path name of the file, replacing the
letters http
with the file.
JAVASCRIPT:
 JavaScript is an object-based scripting language designed primarily for the authors
constructing HTML documents for viewing under Netscape navigator, internet
explorer and other such browsers.
  It runs both on the serve and the client side.
 On the client side, it can be used to write programs that are executed by a Web
browser within the context of a Web page.
 On the server side, it can be used to write Web server programs that can process
information submitted by a Web browser and then used to update the browser’s
display accordingly.
 It is a cross-platform scripting language developed by Netscape.
 Client-side java script is typically executed in a browser that supports the language.
 It is an interpreted object-oriented language that can be included in HTML pages.
 You can access a number of elements in your HTML page and manipulate them using
JavaScript.
 This helps in the creation of dynamic HTML pages capable of responding to user
events like mouse clicks, key presses, selection of elements in a form, and so on.
 Using JavaScript you can, for example:
 Create a form that lets the user click on a displayed map of India to obtain the
current average housing cost vis-a-vis per capita income for each state.
 Design a web page that automatically displays a different thought-provoking
quotation at the top of the page every time a page is accessed.
 Add a random number wheel to your webpage that spins at the push of a
button, and then, based on the number it stops on, teleports the viewer to a
particular Website from an extensive list of your favorite sites.
 Construct an online form that lets users determine the closest city where
certain required merchandise is available.
 Build the front-end of a multimedia playback device that uses java applets to
playback different types of files, including shockwave animation files, and real
audio sound files.
 Create a fortune-telling page that collects some information about the viewer
and then displays a personalized set of predictions about that person's life and
prospects.
 Design an online tutorial that shows other people how to write scripts using
tools like JavaScript.
EXAMPLE:
<HTML><HEAD></HEAD>
<BODY>
This is static text<P>
<SCRIPT LANGUAGE="JavaScript">
document.write ("Random number:"+math.random());
</SCRIPT>
</BODY>
</HTML>
 This is a very simple example containing some JavaScript code inside the BODY tag
of the HTML file. JavaScript code is enclosed by<"SCRIPT
LANGUAGE=""JavaScript">and</SCRIPT>tags.
Running Scripts:
 To run built with JavaScript must either be embedded in an HTML document or be
referenced as an external file which is loaded with the HTML document and then
evaluated navigator interrupts the inline code directly.
 A Web browser displays a webpage as a result of the browser acting on the
instructions contained in an HTML file.
 The browser reads the HTML file and displays the elements of the file as they are
encountered.
 The file may contain the embedded JavaScript code.
 The process of reading an HTML field and identifying the elements contained in the
file is referred to as parsing.
 When a script is encountered during parsing, the browser executes the script before
continuing with further parsing.
 The POST method is used to inform the server that the information appended to the
request is to be sent to the specified URL.
 The POST method is typically used to send form data and other information to CGI
programs.
 The web server responds to a POST request by sending back header data followed by
any information generated by the CGI program as the result of processing the request.
 JavaScript statements can be included in HTML documents by enclosing the
statements between an opening<script >tag and a closing</script tag>.
 Within the opening tag, the LANGUAGE attribute is to "JavaScript" to identify the
script as being JavaScript as opposed to some other scripting language, such as visual
basic.
 Here is sample:
<HTML>
<HEAD>
<TITLE>hello world!</TITLE>
<SCRIPT LANGUAGE= "Javascript">
document.write ("hello students!")
</SCRIPT>
</HEAD?
<BODY>
</BODY>
</HTML>
 The following example shows how the HREF attribute of a link may be specified by
the JavaScript linkTo variable.
<html>
<head>
<title>using the javascript entities</title>
<script language="JavaScript">
linkTo ="http://www.xlri.com/javascript"
</script>
 </head>
</body>
<A HREF="& {linkTo};">click here.</A>
</body>
</html>
XML
 Although computers are now able to handle electronic documents that contain images,
music and video, many documents are still bound within a text framework.
 For text and other media to be combined, exchanged and published, it must be
organized within some kind of infrastructure.
 The XML standard provides such a platform.
 The name 'XML' is an acronym for 'extensible markup language'.
 This language is not owned by any single commercial interest.
 It was developed by the W3C (the World Wide Web Consortium), and has been
shaped by experience of previous markup languages.
<transaction>
<timedate="19980509"/>
<amount>123</amount>
<currency type="rupees"/>
<from id="X98765>ravi</from>
<to id="X56565>bimal</to>
</transaction>
 XML can be used to markup semi-structured documents, such as reference works,
training guides, technical manuals, catalogues, academic journals and reports.
 Among other niche applications, XML can also be used to markup
patents ,examination papers, financial statements and research papers.
 New and more specialized uses include support for the presentation of data in the next
generation mobile phones.
 All the features of a typical document can be represented by XML tags.
 Tasking the example of a reference book, objects such as chapters, titles, notes,
paragraph, lists and tables can all be explicitly identified by name:
<chapter>
<title>an example XML fragment<.title>
<note>
<para>this note contains two paragraph.>/para>
<para>the second paragraph</para>
</note></chapter>

E-MARKETING
TRADITIONAL MARKETING:
 If marketing is whatever you do to promote the sale of your products or services, then
it should include:
 1.Marker research-from competitive information-gathering to industry awareness to
soliciting customer opinions and preferences.
2.Publicity from press releases to the positioning of your company and its offerings in
the marketing place.
3.Advertising that is text-based and graphic-based.
4.Sales,including distribution and merchandising.
5.Customer service and customer support.
 Traditional marketing seems to fall far short of three features.
 There are certain problems associated with it, which can be listed as follows:
1. Traditional marketing is often expensive. It can cost a lot of money to produce and
print brochures, product sheets, and catalogues.
2. Traditional marketing can be a very time-consuming process. Mistakes have to be
corrected: you have to go back to the ad agency or printer to revise, add or delete, and
you often have to wait for an ad that you have placed to appear in a publication.
3. Traditional marketing often has a "hit and miss" quality. Marketers often send out
bulk of mails to customers and yet receive a tiny response

IDENTIFYING WEB PRESENCE GOALS:

 When a business creates a physical space in which to conduct its activities, its
managers focus on very specific objectives.
 Few of these objectives are image-driven.
 An ambitious businessman must find a location that will be convenient for customers
to access, with sufficient floor space features to allow the selling activity to occur, and
they must take into consideration.
 The room space to store inventory and provide working space for employees.
ACHIEVING WEB PRESENCE GOALS:
 An effective site is the one that creates an attractive presence that meets the objectives
of the business or the organization.
 these objectives include:
1. Attracting visitors to the website.
2 . Making the site interesting enough so that visitors stay and explore.
3. Convincing visitors to follow the site's links to obtain information.
4. Creating an impression consistent with the organization's desired image.
5. Building a trusting relationship with visitors.
6. Reinforcing positive images that the visitor might already have about the
organization.
7. Encouraging visitors to return to the site.
THE UNIQUENESS OF THE WEB:
 When firms first started creating websites in the mid 1990s, they often build simple
sites that conveyed basic information about their business.
 Few firms conducted any market research to see what kinds of things potential
visitors might to obtain from these web sites, and even fewer considered what
business infrastructure improvement would be needed to keep the site alive.
  Those firms that did included an e-mail link, often understaffed the department
responsible for answering visitor's e-mail messages.
 Thus, many of the visitor's e-mail's remained unanswered.
 The failure to understand how the web is different from other presence-building
media is one reason why so many business fail to achieve their web objectives.
 The scenario has changed for the better in the recent times with the prominence of
internet technologies over others.
MEETING THE NEEDS OF WEBSITE VISITORS:
 Business that are successful on the web realize that every visitor to their website is a
potential customer.
 Thus, an important concern for business crafting a web presence is the variation in the
visitor's characteristics.
 People who visit a website seldom arrive at it by accident; they are at it specific
reason.
 The web designer who makes a site useful for everyone, needs to keep in mind some
of the possible reasons listed as follows:
 Learning about products or services that the company offers.
 Buying the products or services that the company offers.
 Obtaining information about warranties or service and repair policies for products
they have purchased.
 Obtaining general information about the company or organization.
 Obtaining financial information for making an investment or credit-granting
decision.
 Identifying the people who manage the company or organization.
 Obtaining contact information of a person or a department in the organization.

E-MARKETING VALUE CHAIN:

 As such, e-marketing thrives with the maintenance of strong relationship between the
company and the customer.

Customer Customer Customer Customer

Acquisition support fulfillment support
(pre-purchase (during (purchase (post
Support) purchase) dispatch) purchase)

E-marketing value chain

 It is like a chain-the company acquires customers, fulfills their needs and offers
support, and gains their confidence so that they return to it again.
 Thus the customer value is upheld.
SITE ADHESION: CONTENT, FORMAT, AND ACCESS:
Content:
 A customer accesses a website for the content of that site.
 Initially a customer will want to navigate quickly to gain a clear understanding of the
site's progression to more detailed information.
 The key to this to match a user's psychological and technological sophistication profle
with that of the site's initial and subsequent impact.
Format:
 The format of an organization's site is important with respect to the customer's
technical sophistication.
 Vendors need to create a balance between information provision and information
delivery speed.
Access:
 Online data access depends on the bandwidth requirement.
 The clear rule in the initial interaction phase is to use as minimal a bandwidth as is
feasible to facilitate as wide an audience as possible.

MAINTAINING A WEBSITE:
 Creating a website that meets the needs of visitors with such a wide range of
motivations can be challenging.
 Not only do website visitors arrive with different needs, but also they arrive with
different experience and expectation levels.
 In addition to the problems posed by the diversity of visitor characteristics,
technology issues can also arise.
 These website visitors will be connected to the internet through a variety of
communication channels that provide different bandwidths and data transmission
speeds.
 They also will be using several different web browsers.
 One of the best ways to accommodate a broad range of visitor needs is to build
flexibility into the website's interface.
 Many sites offer separate versions with and without frames and give visitor's the
option of choosing either one.
 Some sites offer a text-only version.
 As researches at the trace center note, this can be an especially important features for
visually impaired visitors who use special browser software.
 Such as the IBM HOME PAGE READER, to access website content.
 The W3C WEB ACCESSIBILITY INITIATIVE site includes a number of useful
links to information regarding these issues.
 Convey an integrated image of the organization
 Offer easily accessible facts about the organization
 Allow visitors to experience the site in different ways and at different levels.
 Provide visitors with a meaningful, two-way communication link with the
organization
  Sustain visitor attention and encouraging return visits.
 Offer easily accessible information about products and services and how to
use them.
METRICS DEFINING INTERNET UNITS OF MEASUREMENT:
 The e-commerce world has, since inception attempting to measure parameters
associated with the Web and web sites in order to assets two things:
1. Advertising-how many people saw our banner ad?
2. Visitation-how many people came to our site?
 For advertising, the metrics measured and their interpretation depend on the position
of the measurer.
 The advertising perspective is that metrics can give the advertiser the most accurate
interpretation of the customer-to-site usage ratio, but this has come under increasing
scrutiny as the technology and systems associated with Web interfaces and networks
become well understood by the advertisers.
 There is a problem with using hits as a measuring tool.
 What advertisers want to measure includes the number of unique visitations to a site,
as well as multiple other parameters, such as the duration of each visit.
1. Click-through captures. How many users click through to the next stage in the
customer acquisition process?
2. Time spent. How long did the viewer stay at the site and which items, pages or
routes did the viewer select to navigate through the site?
3. Time spent searching. Did the viewer use the' site map' or 'search' feature, and if
so for what and for how long?
4. Time spent before click-through. How long did a viewer linger in the opening
stages of the interaction and where?
5. E-mails and telephone calls. How many e-mails or calls did this section generate
and on what issues?
6. Registered users. If the site has a registration facility, what is the rate?

THE BROWSING BEHAVIOUR MODEL

BROWSING BEHAVIOUR MODEL OF AN ONLINE VIDEO STORE:

 Let us use an example of an online video store to give an informal introduction to the
user behaviour model of an e-commerce site.
 Consider an online video store in which customers can perform the following
functions:
1. Connect to the home page and browser the site by following links to bestseller
videos and promotions of the week per video category.
2. Search for titles according to various criteria including keywords and title.
3. Select one of the videos that results from a search and view additional information
such as a brief description of the product/products, price, shipping time, ranking, and
reviews.
4. Register as a new customer of the virtual video store.
 this allows the user to provide a username and a password, payment information,
mailing address, and e-mail address for notification of order status and videos of
interest.
5. Login with a username and password.
6. Add items to the shopping cart.
7. Pay for the items added to the shopping cart.
Entry:
 This is special state that immediately precedes a customer's entry to the online store.
 This state is part of the BBMG as a modelling convenience and does not correspond
to any action initiated by the customer.

Browse

Entry Home Login Select Add to

cart

Pay
Register

Search
Exit

States and transitions of the BBMG for the virtual Video Store
Home:
 This is the state a customer is in, after selecting the URL for the site's homepage.
Login:
 A customer moves to this state after requesting a login to the site.
 Some times, even a home page ask him to login.
Register:
 To have an account created by registering with the online Video store, the customer
selects the proper link for the registration page, thus making a transition to the register
state.
Search:
 A customer goes to this section after issuing a search request.
Browse:
 This is the state reached after a customer selects one of the links available at the site
to view any of the pages of the site.
 These links include the list of bestsellers and weekly promotions.
Select:
 A search returns a list of zero or more links to videos.
 By selecting one of these links, a customer moves to this state.
Add to Chart:
 A customer moves to this state upon selecting the button that adds a selected video to
the shopping cart.
Pay(Billing):
 When ready to pay for the items in the shopping cart, the customer moves to the
billing section.
Exit:
 Customers may leave the site from any state. Thus, there is a transition from all states,
except the entry state, to the exit state.
AGGREGATE METRICS FOR E-BUSINESS SITES:
 Since the web became a widely used vehicle to support all sorts of applications,
including e-business, the need arose to devise metrics to measure a site's efficiency in
attaining it's goals.
AGGREGATE METRICS FOR E-BUSINESS SITES
Category Function Description

Common Login Login to the site.

Register Register as a new user.
Search Search site database.
Select View one of the results of a search.
Browse Follow links within the site.

Retail Add item Add item to shopping cart

Remove item Remove item from a shopping cart.
See shopping Cart Check contents and value of shopping cart.
Create Registry Create a gift registry.
Add to Registry Add item to gift registry.
Check Status check Status of previous order.
Pay Pay for items in shopping cart.
Information Download Download software/report/music.
Subscribe Subscribe to regular downloads.
Listen Listen to real-time audio (e.g. lecture)
Watch Watch real-time movie.

Hits/Second:
 This measures the number of requests for objects served in each second by website.
 A page is usually composed of one HTML file and several other embedded image
files that are automatically requested from the web sever when a user requests the
HTML document.
 So, hits/second counts not just the HTML pages but all embedded objects in a page as
separate requests ,which does not give a precise idea of the number of times a specific
page.
 With its advertisement banners, was viewed.
Page Views/Day:
 This reflects the number of individual pages served per day.
 A company paying for a banner ad to be posted on a page may be interested in the
number of times its ad is being seen.
 Very popular sites can display a few hundred million page views per day.
Click – Throughs :
 This measures the percentage of users who not only view an online ad but also click
on it to get to the web page behind it.
 This metric is oriented more towards assessing the impact of online ads.
 However, this measure can be misleading.
 If the message in the banner ad is too general, it may draw a larger number of clicks
then a more specific message.
Unique Visitors:
 This indicates how many different people visited a website during a certain period of
time.
 Many times it is more important to know how many different people visited your site
then the total number of visits received during a certain period.
Revenue Throughput:
 this is business-oriented metric that measures the number of dollars/sec derived from
sales from an e-commerce site.
 This measure implicitly represents customer and site behaviour.
 a customer who is happy with the quality of service of an e-business site will shop at
the web store, and the revenue throughput will increase.
Potential Loss Throuhput:
 This is another business-oriented metric that measures the amount of money in
customers shopping carts that is not converted into sales because leaves the site due to
poor performance or other reasons.
ONLINE MARKETING:
 Online marketing means using the power of online networks, computer
communications and digital interactive media to reach your marketing objectives.
 Online marketing will not replace traditional forms of marketing anyway.
 Instead, it will both add to and subtract from today's marketing mix.
 But it will remove marketing’s dependence on paper.
 It will add more interactivity.
 There are three new market segments which are as follows:
Cyberbuyers:
 These are professional who spend a good deal of time online, mainly at their places of
business.
 These professionals often have to make complex purchasing decisions that require
reams of data and difficult to locate sources of supply, all within a tight frame.
 That is a perfect fit with the capabilities of online technology.
Cyberconsumers:
 These are the home computer users wired up to commercial online services and the
internet.
 This group represents the pot of gold, and marketers simply need to find ways to
make it more attractive to shop and buy online than to go to the local store.
Cyber surfers:
 They use online technology to expand their horizons, challenge their abilities, and for
fun.
 This segment is typically younger, and possesses shorter attention spans.
 Some of the important aspects of marketing are advertising, sales, security of the
transactions and the mode of payment used for payments.
 And all of these have had to adapt and change themselves according to the demands
of the internet.
HOW SHOULD BUYERS PAY ONLINE?:
 The marketplace, as usual, is responding quickly to this concern.
 A few basic models or approaches to net-based sales transactions are beginning to
come into focus. They are:
1. The consumer responding to net-based marketing presentation ,sends in a cheque,
or calls and verbally transmits a credit card number, over the merchants telephone.
this is a fairly traditional approach, and no financial transaction takes place on the
internet.
2. The consumer(i) sets up an account with a merchant or a third party organizations,
(ii) leaves his or her credit card number by means other than the internet,
(iii) gives the merchant the authorization to bill the account, whenever the consumer
chooses to buy something.
3. The consumer leaves his or her credit card number on an unsecure online order
form.
 with this approach, the consumer is put at some risk that the credit card number will
be compromised but the risk is perhaps not much greater than giving it out over the
phone.
4. The consumer uses a secure client software program to transfer his or her encrypted
credit card number to a secure merchant server.
5. The consumer exchanges traditional currency for some form of digital currency and
Databanks:
 In the information economy, pure data is emerged as a hot commodity,
 With the ease and low cost delivering information over the internet pushing down
prices, data -vendors are building profitable business in the market space.
 convenient mechanisms for searching database are making information services user-
friendly as well.
 And importantly, business are also springing up to enable data-shoppers to hunt for
the information they need, in the form of search engines which search millions of
documents on the internet to track down information.

Music:
 Since it is recorded and stored digitally, music as well as the other audio products are
the perfect products for distribution over the internet.
 Instead of buying cassettes or CD's customers can simply download the recordings
from the site.
 The world's top music labels are setting up websites from which internet shoppers can
buy their favourite pieces.
 They are also creating customer involvement by setting up virtual communities of
music aficionados who can access sample, trivia, and other value-added information,
such as lyrics and scores directly through the internet.
Retailing:
 Two genres of online shopping malls are being setup by digital entrepreneurs.
 The first consists of multimedia catalogues which shoppers can download through the
internet without taking physical delivery.
then spends units of that currency whenever and where ever he or she likes.
ADVANTAGES OF ONLINE MARKETING:
 Some of the advantages of online can be listed in the following manner:
 1. Online marketing offers bottom-line benefits that tie in directly to the demands
placed on the organization trying to make a transition into the new economy.
 2. Online marketing can save money and help you stretch your marketing budget.
Electronic versions of catalogues, brochures, and specification sheets do not have to
be printed, packaged, stored, or shipped
 3. Online marketing can save time and cut steps from the marketing process.
Marketers no longer have to wait for one of their sales representatives, it give them
the desired information. They can get it online on their own
  4. Online marketing gives customers another way to buy, while enabling them to take
control of the purchasing process. Today, customers want more. They want more
information about the products they buy, more input to the product itself, and support
after the sale.
 5. Online marketing can be information -rich and interactive .It appeals to
information-hungry buyers and analytical buyers. It allows buyers and current
customers to search and locate the information hey need quickly.
 6. Online marketing can offer you instant international reach and indeed, online
networks have created an instant global community.
 7. Online marketing can lower barriers to entry and offer equal opportunity for access.
When you are doing business online, distinctions related to the ethnic background or
gender or even the size of business do not seem to matter as such. The online world is
a great leveller.

VARIOUS BUSINESSES THAT CAN FLOURISH ON THE INTERNET:

Banking:
 The advent of automated teller machines has long extended banking into the realm of
computer-network-enabled services.
 Now ,online banks are being set up exclusively to serve clients through the internet,
with the full range of banking services-deposits,
 Withdrawals ,funds transfer, loans and other forms of transactions.
 Simultaneously, online financial services are being offered by other companies,
bringing investment opportunities to customers.
 And several companies are offering e-cash services.
 The second variety is a supermarket service that offers gateways to the websites of
scores of other shops, acting as a single window for virtual shoppers. With electronic
payment systems becoming secure.
 Customers will soon complete entire retailing transactions on the internet.
E-ADVERTISING:
 Advertising is a $500 billion Worldwide industry that, until now, has been mainly a
one-way street, with consumers passively absorbing advertising messages.
 Advertisers hoped that potential buyers would remember their slogan or jingle long
enough to make a trip to the store and purchase the product.
 This has changed with the advent of interactivity.
 The new concept of ''interactivity' has overpowered the traditional concept of
advertising, by putting the buyer in the driver's seat.
 Interactivity allows consumers to increase their control over the buying process.
 We are all deluged with an overflow of data.
 We long for a sense of mastery over the information that washes over us.
1. People increasingly prefer to surf the internet rather than watch TV.
2. The target audience goes to the advertisement, rather than the other way around.
3. Development of business search engines by companies such as C2B technologies.
 Which aim to link buyers with online bargain sites for over million products for
comparison-shopping purpose.
4. Yahoo! has a business unit which offers contests and prizes to online participants,
which drive players to the websites of different clients.
5. The growth of e-business. Dell, computers, for example, estimates that by 2005,8
percent of its sales will be through the internet.
6. The internet is not geographically restricted. Amazon.com sells 20 percent of its
books to foreign destinations, where as a physical store serves an area of only a few
square miles.
VARIOUS MEANS OF ADVERTISING:
E-mail:
 The advantages of e-mail are its low cost and its ability to reach a wide variety of
targeted audiences.
 Most companies develop a customer database, to whom they send e-mail's.
 E-mail is emerging as a marketing channel that affords cost-effective implementation
and better, quicker response rates than other advertising channels.
 Marketers should be racing to embrace the medium.
 It may also happen that when every marketer starts inundating prospects and
customers with e-mail, the consumers may react negatively.
Banners:
 They makeup 50 percent of online ad revenues, but their effectiveness may be
waning.
 When IBM kicked off banner ads in 1994 on tech site hotwire,30 percent of the
people who saw the ads clicked on them.
 Now the overall click-through rate for banner ads has dropped to a measly 0.3
percent.
Skyscrapers:
 These are the extra-long skinny ads running down the right or left side of a website.

Banner swapping:
 Banner swapping is nothing but a direct exchange of links between websites.
 To be precise, company A may agree to display a banner of company B in exchange
for company B displaying company A's banner.
Streaming Video and Audio:
 Companies and content networks including Real Networks, NetRadio, and Music
Vision, insert ads for marketers into music and video clips, as consumers listen to
them.
 It is much more like that TV that marketing advertisers know and trust.
 You can get click-through rates of about 3.5 percent, according to real network.
 Its widespread use will depend on high-speed internet connections.
Effectiveness Tracking:
 This is an upstart dynamic logic designed by a pioneering service to help traditional
advertisers gauge the impact of their marketing by placing tiny files, called cookies.
  On viewers computers this helps them track where people go after seeing their adds.
Mini-sites, Pop-ups:
 These adds burst upon the screens allowing companies such as Volvo and SmithKline
Beecham's oxy acne medicine to dish up games and product information.
 Mini-sites allow advertisers to market without sending people away from the site they
are visiting.
 This type of advertising also gets higher click rates.
 Sometimes, these can be intrusive and annoying.
Interstitials:
 Visit the railway site when the site uploads, a new window will open in your browser
from Citibank, asking you to apply for a loan.
 These windows are called interstitials, and they demand your attention because you
must click on them, even if only to close the window.
 It is estimated that the click-through rates are as high as 5 percent.
Sponsorships:
 Sponsorships can vary from a simple sponsorship of an e-mail list to much more
sophisticated site sponsorship deals.
 For example the e-retailer 800.com (www.800.com)sponsored a list of the top 10
videos which appeared alongside the 800.com logo on the Hollywood stock
exchange(www.hsx.com).
Coupons:
 Companies such as cool savings(www.coolsavings.com) offer their members discount
coupons which they can print out and then use for both online and offline retailers.
 Coupons can be an attractive marketing mechanism because they encourage product
trial, and they are a way of selectively discounting prices to the most price sensitive
customers go to website and print out a coupon.
Pay Per Advertising View:
 Companies such as cyber gold "pay" customers to view advertisements.
 The approach uses the accountability of the web to reward consumers for processing
the "right" kind of information.
Loyalty Programs:
 Companies such as click rewards(www.clickawards.com) offer their members the
chance to earn a currency.
 Such as airlines miles, by shopping at their network of partner sites.
 The economics of customer retention are well known.
 An existing, loyal customer is much more profitable than a new one, so rewarding
existing customers to encourage them to remain loyal can be good tactic.
Partnerships:
 While many offline companies arrange partnerships, the use of partnerships is more
pervasive in the new economy.
 Similar to the manner in which complementary companies often collaborate to push a
new technology, web companies often partner with complementary sites to quickly
provide a more value-enhanced service to site visitors.
  One prevailing strategy is to select a customer niche and provide services that
encompass the customer's entire needs in that area.
Innovative Customer Acquisition:
 As the internet market becomes more competitive, competitive advantage will be
derived from innovative marketing.
 One form of innovative marketing is to ally with groups and provide a complementary
service that benefits the group membership.
Providing Information:
 The web allows sites to instantly offer information that is relevant to their customer
base.
 Many sites provide instantly accessible information to their customers as a form of
marketing and product differentiation.
 the e-commerce market for travel is very competitive, with want well-funded players.
Leverage the Customers Base:
 A primary goal of e-commerce business today is to invest heavily in creating a large
customer base and establishing a relationship of trust with their customers.
 Many firms are trying to establish a reputation that conveys to its customer base that
they are a solid company that is good at fulfilling E-commerce orders.
Personalized Online Communication:
 Online companies have the opportunity to reduce mass-marketing expenses and
increase response rates by developing marketing strategies that center around each
individual customer.
 The manner in which transactions occur on the internet provides e-commerce
companies with detailed information on their customers.
 Information derived from customers registering preferences and demographic
information, as well as firms analyzing past purchases and web-surfing habits.
1.Permission Marketing:
 Seth Godin coined the term permission marketing to describe how successful e-mail
campaigns can result from creating relationships with customers.
 Permission marketing has become the current rage of online marketers and has led to
increase in marketing response rates.
 Permission marketing presumes what successful marketing campaign can be created
by establishing a mutually beneficial and trusting relationship between the firm and its
customers.
2.Personalized Recommendations:
 Many e-commerce sites have personalized services that makes specific merchandise
recommendations for each user based on past purchases, web pages viewed, and
survey information that the user has provided.
3.Personalized Advertisements:
 websites increasingly are using personalized technology software to determine
dynamically, in real time, which web advertisements should be exposed to views.
 ZDNET uses personalization technology that is based on an analysis of five user
profile and impression environment variables.
4. Personalized Web pages:
 Many portals and e-commerce sites allow users to create their own personalized web
page.
 This allows users to create a web page that caters exactly to their interests.
 Personalization encourages users to return more often and increase the user familiarity
and trust with the web page.
5.Personalized E-commerce Stores:
 One of the goals of online merchants is to use internet technology and their
knowledge about individual consumers to tailor their products and services for each of
their customers.
 Jeff Bezos, Amazons chairman, has stated that one of his goals is to have is "store
redecorated for each and every customer".
 However the cautions that it could take up to 10 years to achieve such individual
customization.
CONDUCTING ONLINE MARKET RESEARCH:
 The internet is a powerful and cost-effective tool for conducting market research
regarding consumer behaviour, identifying new markets, and testing consumer
interest in new products.
 Interest in interactive internet research methods is on the rise.
 Market research that utilizes the interest is frequently more efficient, faster,and
cheaper, and allows the research to access a more geographically diverse audience
than those found in offline surveys.
Online Market/Research Process and Results:

 The steps in conducting online research are shown in fig

Problem Research Results

Definition and methodology, Data collection, Recommendations,
Research Data Data analysis Implementation
objectives Collection plan

 Steps in collecting market research data.

1. Define the research issue and the target market.
2. Identify newsgroups and internet communities to study.
3. Identify specific topics for discussion.
4. Subscribe to the pertinent groups; register in communities.
5. Search discussion group topic and content lists to find the target market.
6. Search e-mail discussion group lists.
7. Subscribe to filtering services that monitor groups.
8. Enter chat rooms whenever possible.
 Content of the research instrument
1. Post strategic queries to groups.
2. Post surveys on your website. Offer rewards for participation.
 3. Post strategic queries on your website.
4. Post relevant content to groups with a pointer to your website survey.
5. Post a detailed survey in special e-mail questionnaires.
6. Create a chat room and try to build a community of consumers.
 Target Audience of the Study
1. Compare your audience with the target population.
2. Determine your editorial focus.
3. Determine your content.
4. Determine what web services to create.
Tracking Customer Movements on the Internet:
 Through the internet it is possible to learn about customers by observing their
behaviour on the internet rather than interacting with them and posing questions of
them.
 Many marketers keep track of customers web movements using cookie files attached
to a users browser to help track a web surfers movements online, whether or not
consumers are aware of it.
Limitations of Online Research:
 Online research is not suitable for every client or product.
 although the web-user demography is rapidly diversifying.
 It is still skewed towards certain population groups, such as those with internet access.
 If company manufacturers a consumer product such as laundry detergent.
 Internet research may not be an ideal research tool.
BUILDING CUSTOMER RELATIONSHIP BASED ON ONE-TO-ONE MARKETING:
 One-to-one marketing is a type of relationship marketing.
 Relationship marketing is the overt attempt of exchange partners to build a long-term
association, characterized by purposeful cooperation and mutual dependence on the
development of social as well as structural bonds.
 to be a genuine one-to-one marketer a company must be able and willing to change ita
behaviour towards an individual customer based on what they know about that
customer.
 So one-to-one marketing is really a simple idea-"treat different customers differently"
 It is based on the fact that no two customers are alike.
MARKET SEGMENTATION
 For tears companies used direct mail to contact customers.
 However they did it regardless of whether the products or services were appropriate
for the individuals on the company’s mailing list.
 The cost of the direct mailings was about $1 per customer, and only 1 to 3 percent
responded.
 This meant that the cost per responding customer was between $33 and $100.
 Obviously this type of direct marketing was not cost-effective.
 In segmentation the company breaks thousands of customers into smaller
demographic segments and tailors its compaigns to each of those segments.
  Segmentation is done with the aid of tools such as data modelling, warehousing, and
mining.
Problems of Internet Marketing in India:
 Internet marketing is now focused on urban and educated middle class population.
 To understand the growth of internet users in India, we need to channelize the number
appropriately by addressing the issue of "who is an internet user in India?"
 A typical internet user in an Indian household is a male student who is studying in
graduation/ post graduation and is aged between 19-25 years.
 Only 12 percent of the internet users are traders/ businessmen, which is probably
explained by the low level of web enablement of retailers in India.
 Further only 4 percent of the internet users are housewife; this is a potential segment
that can be tapped by the family product segment using the internet.

CONSUMER MARKET SEGMENTATION IN INDIA

Segmentation Base/ Descriptors

Geographic Region and states

Size of state, city, district, village
Statistical area
Population density
Climate

Demographic Age
Occupation
Sex
Education
Family size
Religion
Family life cycle
Caste
Income
Linguistic groups

Psychosocial Social classes

Lifestyles
Personality

Cognitive, Affective, Behavioural Attitudes

Benefits sought
Loyalty status
Readiness stage
 Usage rate
Perceived risk
User status
Innovativeness
Usage situation
Involvement

DATA MINING AND MARKETING RESEARCH:

 Data mining derives its name from the similarities between searching for valuable
business information in a large database and mining a mountain for a vein of valuable
ore.
 both processes require either sifting through an immense amount of material or
intelligently probing it to find exactly where the value resides.
 Given databases of sufficient size and quality.
 Data mining technology can generate new business opportunities by providing these
capabilities.
Automated Prediction of Trends and Behaviours:
 Data mining automates the process of finding predictive information in large
database.
 Questions that traditionally required extensive hands-on analysis can now be
answered directly and quickly from the data.
Automated Discovery of Previously Unknown Patterns:
 Data mining tools identify previously hidden patterns.
 An example of pattern discovery is the analysis of retail sales data to identify
seemingly unrelated products that are often purchased together, such as baby diapers
and beer.
 Other patterns discovery problems include detecting fraudulent credit card
transactions and identifying anomalous data that may represent data entry keying
errors.
 The following are the major characteristics and objectives of data mining:
1. Relevant data are often difficult to locate in very large database.
2. In some cases the data are consolidated in data warehouses and data marts; in
others they are kept in databases or in internet and intranet servers. Data mining tools
help remove the information buried in corporate files or archived in public records.
3. The "miner" is often an end-user empowered by "data drills" and other power query
tools to ask ad hoc question and get answers quickly, with little or no programming
skills.
4. "Striking it rich" often involves finding unexpected, valuable results.
5. Data mining tools are easily combined with Spread sheets and other end-user
software development tools; therefore the mined data can be analyzed and processed
quickly and easily.
6. Data mining yields five types of information: (a) association,(b) sequences,(c)
classifications,(d) clusters, and (e) forecasting.
  Data miners can use several tools and techniques, the most well-known tools of data
mining are:
Neural Computing:
 Neural computing is a machine learning approach by which historical data can be
examined for patterns.
 Users equipped with neural computing tools can go through huge databases.
 For example identify potential customers for a new product or search for companies
whose profiles suggest that they are headed for bankruptcy.
Intelligent Agents:
 One of the most promising approaches to retrieving information from the internet or
from intranet-based database is through the use of intelligent agents.
Association Analysis:
 This approach uses a specialized set of algorithms that sorts through large data sets
and expresses statistical rules among items.
DATA MINING APPLICATIONS
Industry Applications
Retailing and sales Predicting sales, determining inventory levels and schedules.
distribution
Banking Forecasting levels of bad loans and fraudulent credit card use,
Predicting credit card spending by new customers, predicting
Customer response to offers.

Airlines Capturing data on where customers are flying and the ultimate
destination of passengers who change carriers in mid-flight;
thus airlines can identify popular locations that they do not
service and check the feasibility of adding routes to capture
lost business.

Broadcasting Predicting what is best to air during prime time and how to
maximize
returns by interjecting advertisements.
Marketing Classify customer demographics that can be used to predict
which
customers will respond to a mailing or buy a particular
product.

INTELLIGENT AGENTS IN MARKETING AND CUSTOMER-RELATED APPLICATION:

 As the number of customers, products, vendors, and information increases, it becomes
uneconomical or even impossible to match customers and products and consider all
relevant information.
  The practical solution to handle the information overload is to use intelligent and
software agents.

Need Identification

Awareness of an unmet need and its possible fulfillment.

Product Brokering

What to buy? Product evaluation, match product to needs,

compare alternatives, multiple criteria.

Merchant Brokering

Price and other criteria, comparisons etc, are done.

Negotiation

Negotiate the terms of transaction.

Price and other criteria, comparisons.

Purchase and Delivery

Pay and take possession of the product.

Product is delivered.
Agent-Purchasing
Need Identification:
  Agents can assist the buyer with need identification by providing product information
and stimuli.
 For example amazon.com provides its customers with an agent that continuously
monitors sets of data and notifies customers when a book in their area of interest
arrives.
 Similar agents watch for stocks to go below or above a certain level sending the
customer a e-mail when that level is reached.
 Expedia.com notifies customers about low airfares to a customers desired whenever
they become available.
Product Brokering:
 Once a need is established customers search for a product that will satisfy this need.
 Several agents are available to assist customers with this task.
 The pioneering agent in this category was firefly.
 This agent which was purchased by Microsoft and is no longer available
independently, initially helped users find music they were likely to enjoy.
Merchant Brokering:
 Once a customer knows what product he or she wants, the customer needs to find
where to buy it.
 Bargain finder was the pioneering agent in this category.
 The agent used in online CD shopping queried the price of a specific CD from a
number of online vendors and returned a list of prices.
Negotiation:
 The concept of "market" implies negotiation mostly about prices.
 In B2B transactions negotiation is very common.
 The benefit of dynamically negotiating a price is that the decisions is shifted from the
seller to the marketplace.
 In a fixed-price situation, if the seller fixes a price that is too high sales will suffer.
 If the price is set too low profits will be lower.
 Electronic support of negotiation can be extremely useful.
Purchase and Delivery:
 Agents are used extensively during the actual purchase, including arranging payment
and delivery with the customer.
 For example if a customer makes a mistake when completing an electronic order
form, an agent will point out immediately.
 When customers buy stocks for example the agent will tell the customers when a
stock they want to buy on margin is not marginable or when the customer does not
have sufficient funds.
 Delivery options at amazon.com for example are posted by agents and the total cost is
calculated in real-time.
MEASURING THE EFFECTIVENESS OF E-ADVERTISING:
 As more companies rely on their websites to make a favourable impression on
potential customers the issue of measuring website effectiveness has become
important.
  Mass media efforts are measured by estimates of audience size, circulation, or
number of addresses.
 When a company purchases mass-media advertising, it pays a dollar amount for each
thousand persons in the estimated audience.
 In reality measuring web audiences is more complicated because of the web's
interactivity and also because the value of a visitor to an advertiser depends on how
much information the site gathers from the visitor number, and other demographic.
 Since each visitor voluntarily provides or refuses to provide these bits of information
all visitors are not of equal value.
 Internet advertiser have developed some web-specific metrics, described in this
section, for site activity but these are not generally accepted and are currently the
subject of debate.

INTERNET MARKETING TRENDS:

TECHNOLOGY-ENABLED RELATIONSHIP MANAGEMENT:
 The nature of the web with its two-way communication features and traceable
connection technology allows firms to gather much more information about customers
behaviour and technology and preferences then they can using micro-marketing
approaches.
 Now companies can measure a large number of things that are happening as
customers and potential customers gather information and make purchase decisions.

E-CRM VS CRM
Dimensions Technology-enabled relationship Traditional relationships with
Management (E-CRM) customers (CRM)
Advertising Provide information in response “Push and sell” a uniform
message
Specific customer inquires to all customers

Targeting Identifying and responding to Market segmentation

Specific customer behaviours
And preferences

Promotions and Individually tailored to customer Same for all customers

discounts offered

Distribution Direct or through inter-mediaries; Through intermediaries chosen

by the
channels Customer’s choice seller

Pricing of products Negotiated with each customer Set by the seller for all
customers.
Or services
New product Created with each customer Determined by the seller based
on
features demands research and development

measurements used Customer retention; total value Market share; profit

to manage the of the individual customer
customer relation- relationshipship

TARGET MARKETS:
 Marketing strategy involves identifying and analyzing a target market and creating
marketing atmosphere that satisfies the individuals in that market.
 Increasingly marketers are reaching those individuals through the internet.
 Currently about 110 million Americans access the internet either at home or at work.
 Although internet access outside the US has lagged behind in usage people around the
world are rapidly discovering the web's potential for communication and e-marketing.
 Internet use by consumers in other countries-especially Japan(26.9 million users),
Germany(19.1 million), the united kingdom(17.9 million),china(15.8 million),and
Canada(13.28 million)-is escalating rapidly.
PRODUCT CONSIDERATIONS:
 The exponential growth of the internet and the world wide web presents significant
opportunities for marketing products to both organizations and consumers.
 Through e-marketing strategies companies can provide products including goods,
sevices, and ideas, that offer unique benefits and improve customer satisfaction.
 Computers and computer peripherals ,industrial supplies, and packaged software are
the leading organizational purchases online.
 Consumer products account for a small but growing percentage of internet
transactions, with securities trading, travel/tourism, and books among the hottest
consumer purchases.
 The online marketing of goods such as computer hardware and software, books,
videos, CD's, toys, automobiles and even groceries is accelerating rapidly.
 Ideas such as marriage counseling, medical advice, tax/legal advice, and psychic
services, are being successfully marketed as well.
E-BRANDING:
 A known and respected brand name can present to potential customers, a powerful
statement of quality value and other desirable qualities in one recognizable element.
 Branded products are easier to advertise and promote, because each product carries
the reputation of the brand name.
 Companies have developed and nurtured their branding programmers in the physical
marketplace for many years.
 Consumer brands such as ivory soap, Walt Disney entertainment Maytag appliances,
and ford automobiles have been developed over many years with the expenditure of
tremendous amounts of money.
  However, the value of these and other trusted major brands far exceeds the cost of
creating them.
ELEMENTS OF BRANDING:
 The key elements of a brand are differentiate, relevance, and perceived value.
 Product differentiate is the first condition that must be met with to create a product or
a service brand.
 The company must clearly distinguish its product from all others in the market.
 This makes branding for products such as salt, nails, or plywood difficult, but not
impossible.

 Books : Amazon.com(56%)
 Music : CDNow(24%)
 Computer Software : Microsoft(30%)
 Computer Hardware : Dell(20%)
 Clothing : TheGap(12%)
 Travel : AOL, Yahoo!travelocity(each 8%)
 Autos : Yahoo!(6%)

E-BRANDING CRITERIA
Element Meaning to the customer

Differentiation In what significant ways is this product or service unlike its

competitors?

Relevance How does this product or service fit into my life?

Perceived Value Is this product or service good?

SPIRAL BRANDING:
 The internet does indeed open new possibilities and new dangers for anyone who
ignores the signs.
 The advent of internet sites and mailings make possible a new form of marketing
called spiral branding.
 There are two reasons, first as consumers it pays to be aware of the tactics marketers
are using to influence us.
 Second, many of us will need to understand and use these techniques ourselves, in our
own business.
 The keys to spiral branding are:
1. Use each media for its best purpose.
2. Do it fast.
 3. Iterate constantly.
 The internet is transforming customer buying behaviour, with major consequences for
how the new breed of consumer develops familiarity with, and ultimate loyalty to, the
brand.
 Marketers who strive to capitalize on these shifts-as all successful marketers must do-
will have to better align their branding investments with new data about how
customers shop and buy online.
 Only by strategically recomposing the marketing mix can marketers drive traffic,
build brand equality and capture customer loyalty in the internet age.
Search Engine Optimization:
 With nearly half of all web users citing search engines as their primary portals to new
sites, marketers must re-examine their strategies for optimizing their rankings in
search result.
 Appearing among the first few pages of search results on the top search engines is a
black-magic science practiced by outsourcers who specialize in the real-time
adjustments that are the key to maximizing visibility on search engines.
Affiliate Networks:
 Online marketers need to carefully plan and manage partner that give them a broad
reach of links on affiliate sites across the internet.
 Where 20 percent of web users cite "random surfing" as their top means of finding
new sites, marketers must have extensive links in place, to maximize their reach to
customers throughout the internet.
Advocacy Marketing:
 Often the most powerful recommendation for a company is that of a satisfied
customer to a friend.
 With 20 percent of surfers citing word of mouth from friends as their top means of
finding new sites, companies need to provide ? Incentives and simple mechanisms to
enlist their customers as marketing advocates to their friends-a strategy often referred
to as "viral marketing" by online marketers.
Permission E-mail:
 When customers explicitly opt into permissions marketing relationships, e-mail can
be one of the most cost-effective and brand-positive means of acquiring new
customers and remarketing to existing customers.
 Savvy internet marketers have realized that "e-mail marketing" does not need to be
synonymous with "spam".
 Instead, a range of strategies such as customer relationship e-mail, corporate e-mail
newsletters, remainder services, permission networks, sponsored independent
newsletters, discussion lists, and partner co-marketing can drive online traffic and
enhance brand equity.
Personalization and Mass Customization:
 Marketers can dramatically enhance customers online experience by personalizing
their web presence and allowing customers to configure products and services.
  Sites can improve customer loyalty and built exit barriers with services such as
personalized customer interfaces behaviour-based recommendations and individual
product configuration.
E-care:
 A key component of any brand experience is the quality of customer service and
support while companies have ling striven for customer service excellence in the
offline environment.
 They are finding that customer expectations for online service present many
unfamiliar challenges.
 Such as managing a torrent of customer e-mail inquiries and enabling efficient self-
service knowledge bases.
 With the proper allocation of resources, however, companies can experience brand-
positive efficiencies, delivering quality customer service more efficiently online than
through traditional channels.
 Companies that disappointment the user's expectations however, will damage their
online brand equity.
MARKETING STRATEGIES:
PERMISSION-MARKETING STRATEGIES:
 Many business would like to send e-mail messages to their customers and potential
customers to announce new products, new product feature, or sales on existing
products.
 However, print and broadcast journalists have severely criticized some companies for
sending e-mail messages to customers or potential customer.
 Some companies have even faced legal action after sending out mass e-mails.
 Unsolicited e-mail is often considered to be a spam.
 Many business are finding that they can maintain an effective dialogue with their
customers by using automated e-mail communications.
 Sending one e-mail message to a customer can cost less than one cent if the company
already has the customers e-mail address.
 Purchasing the e-mail addresses of persons who have asked to receive specific kinds
of e-mail messages will add between a few cents and a dollar to the cost of each
message sent.
 Another factor to consider is the conversion rate.
 The conversion rate of an advertising method is the percentage of recipients who
respond to an ad or promotion conversion rates on much higher than the click-through
rates on banner ads.
 Which are currently under 1 per cent and decreasing.
BRAND-LEVERAGING STRATEGIES:
 Relational branding is not the only way to build brands on the web.
 One method that is working for well-established websites is to extend their dominant
positions to other products and services.
 Yahoo! is an excellent example of this strategy.
 Yahoo! was one of the first directories on the web.
  It added a search engine function early in its development and has continued to parlay
its leading position by acquiring other web business and expanding its existing
offerings.
 Then, Yahoo! acquired geocities and broadcast.com, and entered into an extensive
cross-promotion partnership with a number of fox entertainment and media
companies.
 Yahoo! continuous to lead its two nearest competitors, excite and Infoseek, in ad
revenue by adding features that web users find useful and that increase the site's value
to advertisers.
 Amazon.com expansion from its original book business into CD's videos, and
auctions is another example of a website leveraging its dominant position by adding
features useful to existing customers.
AFFILIATE-MARKETING STRATEGIES:
 Of course, this leveraging approach only works for firms that already have websites
that dominant a particular market.
 As the web matures, it will be increasingly difficult for new entrants to identify
unserved market segments and attain dominance.
 A tool that many new, low-budget websites are using to generate revenue is affiliate
marketing.
 In affiliate marketing, one firms website includes descriptions, reviews, ratings,or
other information about a product that is linked to another firms site that offers the
item for sale.
 For every visitor who follows a link from the affiliate's site to the seller's site, the
affiliate site receives a commission.
 The affiliate site also obtains the benefit of the selling site's brand in exchange for the
referral.
VIRAL-MARKETING STRATEGIES:
 Traditional marketing strategies have always been developed with an assumption that
the company was going to communicate with potential customers directly or through
an intermediary that was acting on behalf of the company,
 Such as a distributor, retailer ,or independent sales organization.
 Since the web expands the types of communication channels available ,including
customer-to-customer communication, another marketing approach has become
popular on the web.
 Viral marketing relies on existing customers to tell other persons-the company's
prospective customers-about the products or services they have enjoyed using.
 Much as affiliate marketing uses websites to spread the word about a company, viral
marketing approaches individual customers to do the same thing.
 The number of customers increase much as a virus multiplies, thus the name.
WEBSITE NAMING ISSUES:
 Firms that have a major investment in branding a product or a service must protect
that investment.
 You learned about the security issues surrounding website naming.
  The legal and marketing aspects of website naming can be very much complicated.
 Although a variety of state and federal laws protect trademarks, the procedure for
creating and using website names that are not trademarks can present some
challenging issues.
 Obtaining identifiable names to use for branded products on the web can be just as
important as ensuring legal trademark protection for an existing brand investment.

DOMAIN NAMES THAT WERE SOLD

Domain name Price

Business.com $7.5 million

Altavista.com $3.3 million
Loans.com $3.0 million
Wine.com $3.0 million
Autos.com $2.2 million
Express.com $2.0 million
Wallstreet.com $1.0 million

 Although most domain that have high value are dot-com sites, the name
engineering.org sold an auction to the American society of mechanical engineers, a
not-for-profit organization, for just under $200,000.

ADVERTISING-SUPPORTED MODEL:
 The advertising -supported business model is the one used by network television in
the United states.
 Broadcasters provide free programming to the audience along with advertising
messages.
 The advertising revenue is sufficient to support the operations of the network and the
creation or purchase of the programs.
 Many observers of the web in its early growth period, believed that the potential for
internet advertising was tremendous.
 However, after a few years of experience trying to develop profitable advertising-
supported business models, many of those observes are less optimistic.
 The second problem is that very few websites have sufficient numbers of visitors to
interest large advertisers.
 Most successful advertising on the web is targeted to very specific groups.
 However it can be difficult to determine whether a given website is attracting a
specific market segment or not, unless that site collects demographic information,
which the visitors are increasingly reluctant to provide of privacy concerns.
MARKETING STRATEGY ON THE WEB:
 Finally, it needs to be reiterated that strategy for marketing on the Internet should
follow
the rules such as those given are:

MARKETING STRATEGIES FOR THE WEB

Strategy Rules

Brands Your website becomes your most important brand.

Change Keep in mind that the marketing rules on the Internet are constantly
changing.
Conciseness Keep your pages short, and spread information on several pages.
Content Content is the king and so make it interesting.

Dynamic sites Create dynamic sites that use new technologies to adapt information
based
on user profiles.
Finances Try new markets with low advertising pricing schemes.
Free giveaways Create free offerings for your loyal customers.
Global village Think global, but localize.
Live events Online events create quick awareness.
Niche markets The internet is a series of niche markets and mass markets.
Promotion Promote your site everywhere.
Syndication Co-brand your services and products.
Technology Use Internet technology to maximize your marketing objectives.

Approximately 63% of the Indian population will make a digital purchase this year, yet only
6.5% of Indian retail sales are expected to come from Internet transactions, increasing to
8.9% by 2018. Source – eMarketer.com
Internet Marketing Trends
Mobile
With widespread growth of tablet and smartphone use, access to the Internet through a
mobile device will be available to about 60% of the population, or 215 million people, in
2015, according to emarketer.com.
Mobile optimization will be an integral part of a website design now and in the
foreseeable future. Websites will need to be mobile friendly, and mobile usability is a factor
for Google search rankings.
As access to the Internet through a mobile device continues to grow, businesses will
need to adapt in all areas of digital marketing: responsive website, mobile ads and mobile
designed content.
Social Media
Social media networks also showed increase in membership and usage. There are
multiple social media platforms and different strategies to use on each. All have their place
in a social media strategy. Nearly three-fourths (72%) of adults who are online use
Facebook, according to Pew Research. Women dominate the usage as the statistics below
show.

Businesses continue to refine their tactics and strategy with a focus on:
Email
Email marketing will continue to be a part of Internet marketing strategy and should
be in sync with content and social media. According to exacttarget.com, most indian
consumers (72%) prefer email marketing, and 40-60% of consumers are reading email on
smartphones.
Email needs to work across all devices. The number one priority for online marketers
is to redesign an email to improve click through rates on a mobile device.
In a recent survey of marketers 91% were using email marketing campaigns. Below are
some of the tactics and results as reported by exacttarget.com:
Email capture via Facebook was found to be used 45% of the time, and 31% rate it as
effective. General email signup on the website used by 74% of respondents. Respondents
rate it as 42% effective.
Sign-up requests specific to different sections of the website were used by 52% of
participants and are 45% as effective. Email lists experience a 25% attrition rate due to
bounces, unsubscribes, and inactive users
Content
Content is the cornerstone of online marketing strategy. Creating good content in a
sea of competition and distraction is a challenge. Budgets for search-engine optimization
(SEO), pay per click (PPC) and media could be impacted by the need for more frequent and
higher quality content.
Content is also a Google ranking factor and will help sites attract high-quality
inbound links, build trust, credibility and authority with your audience.
When creating content, the goals should be focused on the audience with respect to a
mobile view. This can be tricky as longer content is generally better for a desktop experience
while mobile needs to remain highly informative but stated with a lower word count.
Video Marketing
Video marketing is another pillar of content marketing. Generally, videos are
informative, entertaining or promotional. Video is more personal and easier for an audience
to connect with. It can be highly targeted and that is why it is so effective.
Video tends to build credibility and trust. It builds engagement, can double time on
page, creates more opportunity for inbound links, and has been found to have higher click-
through rates, increasing it by as much as 200-300%, according to wirebuzz.com. It also
increases searchable footprint.
Whether you currently run your own business, or are thinking about starting one, you
need to know the top website marketing strategies in order to use the Web to its fullest
potential and become a successful entrepreneur.

UNIT-II COMPLETED
 HINTS

ENABLING TECHNOLOGIES OF THE WORLD WIDE WEB

WORLD WIDE WEB
 information retrieval
INTERNET CLIENT-SERVER APPLICATIONS
TELNET
one computer to connect to another computer
FILE TRANSFER PROTOCOL (FTP)
enables file to be transferred between computers
CHAT ON THE WEB
 can log into the "chat room"
IRC
ICQ-identifying data types with multipurpose internet mail extensions (mime)
NETWORKS AND INTERNETS
two or more computers that are connected to each other
COMMUNICATION SWITCHING
 transfer data using shared lines of communication such as cable.
DEVELOPMENTS IN TRANSMISSION
 supports hundreds or even thousands of simultaneous users
NETWORK ROUTERS
 transfer or route data between networks that use different network technologies.
Connectionless Vs Connection-oriented Protocols
  Connection-oriented protocols in the way requests and responses to requests are
handled.
Signal Bandwidth
 primary limit on any communications
Channel Bandwidth
 channel bandwidth may be physically limited to the medium used by the channel
THE INTERNET PROTOCOL SUITE
 set of rules governing the exchange of data between two entities.
 The key elements of a protocol are:
1. Syntax
2. Semantics
3. Timing
UNIFORM OR UNIVERSAL RESOURCE LOCATORS (URLS)
 identifying resources that are available using Internet Protocols (IP).
TRANSMISSION CONTROL PROTOCOL (TCP)
 provides reliability
SOFTWARE AGENTS
 agents interconnected via the internet.
 information overload
 a typology of agents
 a panoramic overview of the different agent types
 Collaborative Agents
 Mobile Agents
 Information/Internet Agents
 Reactive Software Agents
 Hybrid Agents
 Heterogeneous Agent Systems
INTERNET STANDARDS AND SPECIFICATIONS:
ultimate authority for the technical direction of the internet
INTERNET SERVICE PROVIDERS(ISP):
 Commercialization of users and commercialization of ISPs.
BROAD BAND TECHNOLOGIES:
 Broadband access can be through any medium-copper, fiber, or wireless.
HYPERTEXT:
 Hypertext allows the visual blurring of boundaries, renaming whole nodes and links
JAVASCRIPT:
 object-based scripting language
 It runs both on the serve and the client side.
E-MARKETING
 identifying web presence goals
 achieving web presence goals
 the uniqueness of the web
 meeting the needs of website visitors
  e-marketing value chain:
INTERNET SERVICE PROVIDERS(ISP):
 The interconnected backbones that have international reach
 A multitude of access/delivery sub-networks
 Thousands of private and institutional network connecting various organizational
servers
BROAD BAND TECHNOLOGIES:
Broadband access can be through any medium-copper, fiber, or wireless
TRADITIONAL MARKETING:
o promote the sale of your products or services
o creates a physical space in which to conduct its activities
o Online marketing will not replace traditional forms of marketing anyway.
MARKETING STRATEGIES:
 permission-marketing strategies
 brand-leveraging strategies
 affiliate-marketing strategies
 viral-marketing strategies
 website naming issues

UNIT –II
2 MARKS:

1. What are the ways of communicating on the internet? (APRIL/MAY 2015)

2. What are the objectives of an internet? (APRIL/MAY 2015)
3. Define the term “E-Marketing”?
4. Define E-branding?
5. What are the disadvantages of E-advertising?
6. What is the use of Software Agents in E-commerce?
7. What is the expansion of ISP?
8. What are the components of an intranet? (APRIL/MAY 2016)
9. What is the use of webmaster? (APRIL/MAY 2016)
5 MARKS:

1. Explain the role of World Wide Web in the field of E-commerce? (APRIL/MAY
2015)
2. What are the types of internet connections? Explain. (APRIL/MAY 2015)
3. Explain the benefits and drawbacks of EDI (APRIL/MAY 2016)
4. Write down the Technologies of the World Wide Web?
5. Write a short note on Traditional Marketing?
6. Discuss the Networks and Internets?

10 MARKS:

1. Explain the various important steps to intranet implementation? (APRIL/MAY 2015)

 2. What is mean by Online Marketing? Explain in detail?
3. Explain in detail about Internet Client-Server Applications?
4. Write a detailed note on Hypertext markup language (APRIL/MAY 2016)
5. Explain in detail about services provided by an intranet (APRIL/MAY 2016)

UNIT 3

E-SECURITY
INFORMATION SYSTEM SECURITY:
 Any business, whether it is a traditional brick-and-mortar business, a brick-and-click
e-business, or a pure-play e-business, needs to be concerned about network security.
 The internet is a public network consisting of thousands of private computer networks
connected together.
 This means that a private computer network system is exposed to potential threats
from anywhere on the public network.
1. Integrity of the data sent and received.
2. Confidentiality of the data so that it is not accessible to others.
3. The data ought to be available to the people for whom it is meant.
 The data sent from the source ought to reach in destination without any tampering.
 But the above criteria may be violated by the following.
1. Interrupt the data and cut it off.
2. Intercept the data with the intent of spying on it.
3. Interrupt the data and modify it and send a different data to the receiver.
4. Obstruct the data and fabricate new data and send it to the receiver.
 Encryption.
 Software controls (access limitations in a database, in OS protect each user from other
users).
 Hardware controls (smart card).
 Policies (frequent changes of passwords).
  Physical controls.

a. InformationInformation
SourceDestination b.
Interruption
c. d.

e.

SECURITY ON THE INTERNET

 When looking the following table, one can see the amount of money being spent on
security of computer systems.

GLOBAL SPENDING ON INTERNET SECURITY SOFTWARE 1998-2003

Year revenues (in billions)

1998 $3.2
1999 $4.4
2003 $8.3

 Network administrators have increasing concerns about the security of their networks
when they expose their organization’s private data and networking infrastructure to
internet crackers.
 To provide the required level of protection, an organization needs a security policy to
prevent unauthorized users from accessing resources on the private network and to
protect against the unauthorized export of private information.
 Even if an organization is not connected to the internet, it may still want to establish
an internal security policy to manage user access to certain portions of the network
and protect sensitive or secret information.
1. Vulnerable TCP/IP services:
 A number of the TCP/IP services are not secure and can be compromised by
knowledgeable intruders; services used in the local area networking environment for
improving network management are especially vulnerable.
2. Ease of spying and spoofing:
 A majority of internet traffic is unencrypted; e-mail, passwords, and file transfers can
be monitored and captured using readily-available software.
 Intruders can then reuse passwords to break into system.
3. Lack of policy:
 Many sites are configured unintentionally for wide-open internet access, without
regard for the potential for abuse from the internet; man sites permit more TCP/IP
services than they require for their operations, and do not attempt to limit access to
information about their computers that could prove valuable to intruders.
4. Complexity of configuration:
 Host security controls are often complex to configure and monitor; controls that are
accidentally misconfigured often result in unauthorized access.
 The following sections describe the problems on the internet and the factors that

Contribute to these problems:

1. How security is the server software?
 Security should be in place to prevent any unauthorized remote login to the system.
 It should be extremely difficult to make changes to the server software.
 The servers themselves should be physically located in a secure environment.
2. How secure are communications?
 Customer credit card information and other sensitive data that is being transmitted
across the internet must be protected.
3. How is the data protected once it is delivered to the e-business?
 Is it stored in unencrypted text files at the website? Is it moved to offline storage?
4. How are credit card transactions authenticated and authorized?
 Credit card transactions must be authenticated and authorized, so as to make it more
secure for the users.

GENERAL SECURITY ISSUES

Issue Comment
Connection to the internet Private computer networks are at risk from potential threats
from anywhere on the public internet network.

Unknown risks New security holes and methods of attacking networks

are being discovered with alarming frequency.
Customer privacy and
security of customer
information Not only must steps be taken to protect the privacy of
customer
Information, but also customers must be made aware of those steps and have
confidence in them.
Security consciousness Management and employees must understand the
importance of security policies and procedures.

Network and Website Security Risks

 As part of planning a startup e-business, security, management should become
familiar with network and web server security risk terminology.
 Originally, hacker was a term used to describe gifted software programmers.
 Today, hacker is a slang term used tom refers to someone who deliberately gains
unauthorized access to individual computers or computer networks.
 Since there is wide press coverage of computer system security breaches, the terms
“hacker” and “cracker” are now generally used interchangeably for those involved in
malicious, unauthorized computer system access.

Denial-of-Service Attacks
 A Denial-of-Service or DOS attack is an attack on a network that is designed to
disable the network by flooding it with useless traffic or activity.
 A distributed denial-of-service, or DDOS, attack uses multiple computes to launch a
DOS attack.
 While a Dos attack does not do any technical damage, it can do substantial financial
damage to an e-business, because every second an e-business’s network or a website
is down, it may result in lost revenues.
Viruses
 Viruses are the most common security risk faced by e-businesses today.
 A virus is a small program that inserts itself into other program files that then become
“infected”, just as a virus in nature embeds itself in normal human cells.
 The virus is spread when an infected program is executed, and this future infects other
programs. Examples of virus effects include inability to boot, deletion of files or
entire hard drives, inability to create or save files, and thousands of others
possibilities.
 A logic bomb is a virus whose attack is triggered by some event such as the data on a
computer’s system clock.
 A logic bomb may simply release a virus or it may be a virus itself. Viruses are
generally introduced into a computer system via e-mail or by unauthorized network
access.
 Virus examples include Stoned, Michelangelo and Auto start 9805.

Trojan horse
 This takes its name from a story in Homer’s Iliad, and is a special type of virus that
emulates a benign application.
 It appears to do something useful or entertaining but actually does something else as
well, such as destroying files or creating a “back door” entry point to give an intruder
access, to the system.
Worm
  This is a special type of virus that does not directly alter program files.
 Instead, a worm replaces a document or an application with its own code and then
uses that code to position itself. Worms is often not noticed until their uncontrolled
replication consumer’s system resources and slows down or stops the system.
 Worm examples include VBS/Love letter, a VBS/Godzilla, worm, and Happy99.
How are Sites Hacked?
 Distributed systems based on the client/server model have become common.
 In recent months, we can see an increase in the development and the use of distributed
sniffers, scanners, and denial-of-service tools.
 Attacks using these tools can involve a large number of sites simultaneously and
focus to attack one or more victim hosts or networks.
 In a typical distributed attack system, the ‘intruder’ controls a small number of
‘masters’ which in turn control a large number of ‘daemons’.
 These daemons can be used to launch packet flooding or other attacks against the
‘victims’ targeted by the intruder.

Security Incidents on the Internet

 As an evidence of the above, three problems have occurred within a short period of
time.
 In the first, persistent vulnerabilities in the UNIX send mail programs were forced to
scramble to correct the programs before their vulnerabilities were attacked.
 However, due to the complexity of the send mail program and networking software in
general, three subsequent versions of send mail were found to still contain significant
vulnerabilities.
 The send mail program is used widely, and sites without firewalls to limit access to
send mail are forced to react quickly whenever problems are found and vulnerabilities
revealed.
Weak Authentication
 Security handling teams estimate that many incidents stem from the use of weak,
static passwords.
 Passwords on the Internet can be “cracked” in a number of different ways.
 However, the two most common methods are by cracking the encrypted form of the
password and by monitoring communications channels for password packets.
Ease of Spying
 It is important to note that when a user connects to her account on a remote host using
Telnet or FTP, the user’s password travels across the Internet unencrypted or in plain
text.
 Thus, another method for breaking into systems is to monitor connections for IP
packets bearing a username and a password, and then using them on the system for
normal login.
  If the captured password is to an administrator’s account, then the job of obtaining
privileged access is made much easier.
Ease of Spoofing
 The IP address of a host is presumed to be valid and is therefore trusted by TCP and
UDP services.
 A problem is that, using IP source routing, an attacker’s host can masquerade as a
trusted host or a client.
1. The attacker would change her host’s IP address to match that of the trusted
client.
2. The attacker would then construct a source route to the server that specifies the
direct path the IP packets should take to the server and should take from the server
back to the attacker’s host, using the trusted client as the last hop in the route to the
server.
3. The attacker sends a client request to the server using the source route.
4. The server accepts the client’s request as if it came directly from the trusted
client, and returns a reply to the trusted client.
5. The trusted client, using the source route, forwards the packet on to the attacker’s
host.

How Vulnerable are The Internet Sites?

 The internet, while being a useful and a vital network, is at the same time vulnerable
to attacks.
 Sites that are connected to the Internet face significant risk in some form by intruders.
 The following factors would influence the level of risk:
 Number of systems connected to the site
 Services utilized by the site
 Interconnectivity of the site to the Internet
 Site’s profile, or how well-known the site is
 Site’s readiness to handle computer security incidents.
Website Defacement
 Website vandalism or defacement can be the result of a hacker breaking into a
network, accessing the website files, and modifying the HTML to physically change
Web pages.
 Not only do website defacements embarrass an e-business, but some website
defacements can have serious financial repercussions. Aastrom Biosciences.
 Inc., a Michigan based medical products company, experienced a serious defacement
created to manipulate its stock price.
Electronic Industrial Espionage
 It is a major risk and a big dollar issue that most companies are reluctant to discuss
openly-electronic industrial espionage.
 Often, e-businesses that have been hacked and had business secrets stolen are too
embarrassed to admit the break-in.
  However in late October 2000, one very high-profile company, Microsoft, found itself
scrambling to deal with first rumors and then published reports of a serious hacking
incident with industrial espionage overtones.
Credit Card Fraud and Theft of Customer Data
 Almost all B2C purchase transactions involve credit card.
 An e-business that accepts credit cards in payment for goods and services, must
secure the credit card information in transit to its website, and it must secure stored
credit card information.
 Also, systems must be in place for credit card transaction authentication (verifying
that the person placing the order really is the holder of the credit card used in the
transaction), and credit card authorization (verifying that the charge can be made to
the card number)
Security and E-mail
 E-mail users who desire confidentiality and sender authentication use encryption.
 Encryption is simply intended to keep personal thoughts personal. There are two good
programs to encrypt e-mails and they are:
Privacy Enhanced Mail Standard
 PEM is the Internet Privacy Enhanced Mail standard, designed, proposed, but not yet
officially adopted by the Internet Activities Board, to provide secure electronic mail
over the Internet.
 Designed to work with current Internet e-mail formats, PEM includes encryptions,
authentication, and key management, and allows use of both public-key and secret-
key crypto-systems.
Pretty Good Privacy (PGP)
 Pretty Good Privacy (PGP) is the implementation of public-key cryptography based
on RSA.
 It is a free software package developed by Phillip Zimmerman that encrypts e-mail.
 Since being published in US as freeware in June 1991, PGP has spread rapidly and
has since become the de facto worldwide standard for encryption of e-mail.
 It is freely available for DOS, Macintosh, UNIX, Amiga, VMS, Atari, and OS/2
systems.
Network and Website Security
 The best way to recognize when a hacker is attempting unauthorized network access
is to monitor network performance.
 Setting up, logging, and monitoring established network reference points, called
benchmarks, can alert an e-business to security problems.
 A skilled system administrator and other well-trained technicians, who use these
benchmarks to monitor and manage the network and servers, are critical.
 Other tools such as passwords, firewalls, intrusion detection systems, and virus
scanning software should be used to protect an e-business’ network and website.
Transaction Security and Data Protection
  Transaction security, especially for credit card transactions, and protection of
customer data are as important as website and network security. Tools to protect
transaction data and customer data include:
 Using a predefined key to encrypt and decrypt the data during transaction;
 Using the Secure Sockets Layer (SSL) protocol to protect data transmitted over
the internet. SSL provides encryption of data between the browser on the
customer’s computer and the software on the Web server, allowing data such as
credit card information to be transmitted securely.
 SSL uses digital certificates so that a web browser can authenticate the server it is
connected to, making sure that credit card data is going to the appropriate server;
 Moving sensitive customer information such as credit card numbers offline, or
encrypting the information if it is to be stored online;
 Removing all files and data from storage devices, including disk drives and tapes,
before getting rid of the devices; and
 Shredding all hard-copy documents containing sensitive information before
trashing them.
Security Audits and Penetration Testing
 When evaluating security consultants who will perform the penetration testing, they
are several factors to consider. They can be listed as follows:
1. Get evidence that the security consultants have insurance to protect against
accidental system damage or down time.
2. Have everyone on the consultant’s penetration team sign a non-disclosure
agreement.
3. Consider requiring a third-party background check on each member of the
consultant’s penetration team.
4. Decide whether it makes sense to use a security consultant who employs former
hackers.
5. Determine if the consultant’s team is going to use packaged security scanning
software that could be employed by the in-house staff, or if they are using custom
tools.
6. Develop a clear scope for the penetration test and a workable time frame.
7. Determine whether to have DOS attack done, and if so, when to schedule it to
least disrupt customer access.
8. Make sure the final report from the consultant includes an accounting of all
attacks attempted and whether or not they were successful, a return of all the
paper or electronic information gathered by the consultant, and recommendations
on how to fix up any problems discovered during the tests.
Individual PC Security Risks
 Often managers in an e-business use stand-alone personal computer during the start
up phase, until funds are available to build and operate a network or until the e-
business can outsource its IT operations.
E-BUSINESS RISK MANAGEMENT ISSUES
  An e-business should manage its e-business risks as a business issue, not just as a
technology issue. An e-business must consider the direct financial impact of
immediate loss of revenue, compensatory payments, and future revenue loss from e-
business risks such as:
1. Business interruptions caused by website defacement or denial-of-service attacks;
2. Litigation and settlement costs over employees’ inappropriate use of e-mail and
the Internet;
3. Product or service claims against items advertised and sold via a website;
4. Web-related copyright, trademark, and patent infringement lawsuits; and
5. Natural or weather-related disasters.
 An e-business should put in place an effective risk management program that includes
the following:
 Network and website security and intruder detection programs
 Antivirus protection
 Firewalls
 Sound security policies and procedures
 Employee education
The Firewall Concept
 An Internet firewall is a system or group of systems that enforces a security policy
between an organization’s network and the Internet.
 The firewall determines which inside services may be accessed from the outside,
which outsiders are permitted access to the permitted inside services, and which
outside service may be accessed by insiders.
 For a firewall to be effective, all traffic to and from the Internet must pass through the
firewall, where it can be inspected.
 The firewall must permit only authorized traffic to pass, and the firewall itself must be
immune to penetration.
 Unfortunately, a firewall system cannot offer any protection once an attacker has got
through or around the firewall.
Protection of Vulnerable Services
 A firewall can greatly improve network security and reduce risks to hosts on the
subset by filtering inherently insecure service.
 A result, the subnet network environment is exposed to fewer risks, since only
selected protocols will be able to pass through the firewall.
 For example, a firewall could prohibit certain vulnerable services such as Network
File System (NFS) from entering or leaving a protected subnet.
 This provides the benefit of preventing the services from being exploited by outside
attackers, but at the same time permits the use of these services with greatly reduced
risk of exploitation.
Controlled Access to Site Systems
 A firewall also provides the ability to control access to site systems. For example,
some hosts can be made reachable from outside network, whereas others can be
effectively sealed off from unwanted access.
  A site could prevent outside access to its hosts except for special cases such as mail
servers or information servers.
Concentrated Security
 A firewall can actually be less expensive for an organization in that all or most
modified software and additional security software could be located on the firewall
systems as opposed it being distributed on many hosts.
 In particular, one-time password systems as opposed to each system that needed to be
accessed from the Internet.
Enhanced Privacy
 Privacy is of great concern to certain sites, since what would normally be considered
innocuous information, might actually contain clues that would be useful to an
attackers.
 Using a firewall, some sites wish to block services such as finger and Domain Name
Service. Finger displays information about users, such as their last login time,
whether they have reads mail, and other items.
 But, finger could leak information to attackers about how often a system is used,
whether the system has active users connected, and whether the system could be
attacked without drawing attention.

Need for Usage Statistics on Network

 If all access to and from the Internet passes through a firewall, the firewall can log
access and provide valuable statistics about network usage.
 A firewall, with appropriate alarms that sound when suspicious activity occurs, can
also provide details on whether the firewall and network are being probed or
attacked.
Policy Enforcement
 Lastly, but perhaps most importantly, a firewall provides the means for implementing
and enforcing a network access policy.
 In effect, a firewall provides access control to users and services. Thus, a network
access policy can be enforced by a firewall, whereas without a firewall, such a policy
depends entirely on the cooperation of the users.
 A site may be able to depend on its own users for their cooperation. However, it
cannot or it should not depend on the Internet users in general.
Firewall Components
 The primary components (or aspects) of a firewall are:
1. Network policy
2. Advanced authentication mechanisms
3. Packet filtering
4. Application gateways.
Network Policy
 There are two levels of network policy that directly influence the design, installation
and use of a firewall system.
  The higher-level policy is an issue-specific network access policy that defines those
services which will be allowed or explicitly denied from the restricted network, how
these serviced will be used, and the conditions for exceptions to this policy.
Service access policy
 The service access policy should focus on Internet-specific use issues as defined
above and perhaps all outside network access (i.e., dial-in policy, and SLIP and PPP
connections) as well.
Firewall design policy
 The firewall design policy is specific to the firewall. It defines the rules used to
implement the service access policy.
 Firewalls generally implement one of the following two basic design policies:

1. Permit any service unless it is expressly denied.

2. Deny any service unless it is expressly permitted.
Advanced Authentication
 Security lapses on the identity of internet users have occurred in part due to the
weaknesses associated with traditional passwords.
 For years, users have been advised to choose passwords that would be difficult to
guess, or not to reveal their passwords.
 However, even if users follow this advice (and many do not), the fact that intruders
can and do monitor the Internet for passwords that are transmitted in the clear has
rendered traditional passwords obsolete.
 Some of the more popular advanced authentication devices in use today are called
one-time password systems.
 A smartcard or authentication token, for example, generates a response that the host
system can use in place of a traditional password.
 The token or card works in conjunction with software or hardware on the host, and
therefore, the generated response is unique for every login.
 The result is a one-time password which, if monitored, cannot be reused by an
intruder to gain access to an account.
Packet Filtering
 IP packet filtering is done, usually, using packet filtering router designed for filtering
packets, as they pass between the router’s interfaces.
 A packet filtering router usually can filter IP packets based on some or all of the
following fields:
1. Source IP address
2. Destination IP address
3. TCP/UDP source port
4. TCP/UDP destination port.
 Filtering can be used in a variety of ways to block connections from or to specific
hosts or networks, and to block connections to specific ports.
 A site might wish to block connections from certain addresses, such as from hosts or
sites that it considers to be hostile or untrustworthy.
  Alternatively, a site may wish to block connection from all addresses external to the
site (with certain exceptions, such as SMTP for receiving e-mail) .
Application Gateways
 To counter some of the weakness associated with packet filtering routers, firewalls
need to use software applications to forward and filter connections for services such
as Telnet and FTP.
 Such an application is referred to as a proxy service, while the host running the proxy
service is referred to as an application gateway.
 Application gateways and packet filtering routers can be combined to provide higher
levels of security and flexibility than if either were used alone.
What Should a Firewall Contain?
1. Be able to support a “deny all services expect those specifically permitted” design
policy, even if that is not the policy used;
2. Support your security policy, not impose one;
3. Be flexible and able to accommodate new service and needs if the security policy of
the organization changes;
4. Contain advance authentication measures, or should contain the hooks for installing
advanced authentication measures;
5. Employ filtering techniques to permit or deny services to specified host systems, as
needed;
6. Use proxy services for services such as FTP and Telnet, so that advanced
authentication measures can be employed and centralized at the firewall. If services
such as NNTP, http, or gopher are required, the firewall should contain the
corresponding proxy services;
7. Contain the ability to centralize SMTP access, to reduce direct SMTP connections
between site and remote systems. This results in centralized handling of site e-mail;
8. Accommodate public access to the site, such that public information servers can be
protected by the firewall but can be segregated from site systems that do not require
the public access;
9. Contain the ability to concentrate and filter dial-in access;
10. Contain mechanisms for logging traffic and suspicious activity, and also mechanisms
for log reduction so that logs are readable and understandable;
11. Be developed in a manner that its strength and correctness is verifiable. It should be
simple in design so that it can be understood and maintained;
12. Be updated with patches and other bug fixes, at regular time intervals.
Benefits of an Internet Firewall
 Internet firewalls manage access between the Internet and an organization’s private
network.
 Without a firewall, each host system on the private network is exposed to attacks from
other hosts on the Internet.
 This means that the security of the private network would depend on the “hardness”
of each host’s security features and would be only as secure as the weakest system.
  Internet firewalls allow the network administrator to define a centralized “choke
point” that keeps unauthorized users such as hackers, crackers, vandals and spies, out
of the protected network, prohibits potentially vulnerable services from entering or
leaving the protected network, and provides protection from various types of routing
attacks.
 An Internet firewall simplifies security management, since network security is
consolidated on the firewall systems rather than being distributed to every host in the
entire private network.
Defining an Enterprise-wide Security Framework

People Policy

Technology

People
 This core element is the most important. The people element comprises the people
and various roles and responsibilities within the organization.
 These are the people that are put in place to execute and support the process. A few
key roles include senior management, security administrators, system and IT
administrators, end users, and auditors.
Policy
 This element comprises the security vision statement, security policy and standards,
and the control documentation.
 This is basically the written security environment-the bible that the security process
will refer to for direction and guidance.
Technology
 This element includes tools, methods, and mechanisms in place to support the
process. These are core technologies-the operating systems, the databases, the
applications, the security tools-embraced by the organization.
 The technology then is the enforcement, monitoring, and operational tools that will
facilitate the process.
The People, Policy, Technology (PPT) Model
 The PPT model can be illustrated with a few simple examples. Figure shows the PPT
model with regards to internet usage and misuse.
 Users are educated on the proper usage of the Internet. The controls environment
relies solely on the user.
 An Internet usage policy is written to document proper use of the Internet and the
consequences of misuse.
 The controls environment now is supported by two of the three core elements.
  The PPT model is simply the analysis of a risk issue. If the issue is broken down into
the three core elements, action items can be determined for each core element.
 In this manner, control coverage can be moved from one element to two, and
ultimately to coverage by all of the elements.
Understanding the Security Framework
 Key elements, also referred to as the “Four Pillars” to Information Security, include:
 Solid Senior Management Commitment
 An overall Security Vision and Strategy
 A comprehensive Training and Awareness Program
 A solid Information Security Management Structure including key skill sets and
document responsibilities as depicted in figure.
 Within the four “pillars” of the program, several phases are included.
 The first is the Decision Driver Phase, which contains factors determining the
business drivers of security.
 These include Technology Strategy and Usage, Business Initiatives and Processes,
and Threats, Vulnerabilities and Risk. All these combine of form a unique “Security
Profile” of the organization.
 The “profile” needs to be reflected in the security Policies and Technical Controls.
 The next facet of the Information Security Framework includes the design of the
security environment, also called the Design Phase.
 This is the stage where the organization documents its security policy, the control
environment and deals with controls on the technology level.
 A key element in this process is not only the clear definition of security policy and
technical control information, but also the “Security Model” of the enterprise.
 Information Classifications and Risk Assessment methods fall under this component.
 These processes allow the organization to manage risk appropriately and identify the
risks and value of information assets.
 The final facet of the Information Security Framework is the Implementation phase.
 This begins by documenting the Administrative and End-User guidelines and
procedure.
 These guidelines must be succinct and flexible for the changing environment.
Enforcement, Monitoring, and Recovery processes are then layered on for the
operational support of the security program.
Secure Physical Infrastructure
 This principle is very evident here. The controls for physical and environmental
security are defined in three areas:
 Security of the premises.
 Security of the equipment.
 Secure behavior.
Security of the Premises:
Physical security perimeter
 We begin by defining the boundary of the premises and examining the security
requirement, based on the risk assessment.
  The best way to do this will be to walk around the premises and ‘case the joint’.
Evaluate all the entry point through which an intruder could come in.
 Take help of a security agency to do this.
 Do not depend on your skills as an armchair detective.
 The classical approach to securing the premises is to create multiple barriers.
Physical entry controls
 Only the authorized persons should be allowed access to the secure areas. This
objective could be achieved a by having a clear access control policy defining the
access rights.
Securing offices, rooms and facilities
 Location of the secure office within the physically secure perimeter should be chosen
with care.
 All the risks pertaining to fire, flood, explosion, civil unrest and other forms of natural
or man-made disaster should be considered.
 There could also be threat from neighboring premises, caused by leakage of water,
spreading of fire, or storage of toxic/inflammable/explosive material.
Working in secure areas
 Security equipment like CCTV and swipe-card controlled gates are of no use if the
persons working in these locations are not trustworthy, or are incompetent, or
simply lack awareness of their responsibility.
 They should be hand-picked and trained for these operations.
Isolated delivery and loading areas
 We have taken care of every aspect of physical security in the above paragraphs, but
do we know how canteen facilities get into secured premises?
 How the trash is taken out?
 How the courier delivers the parcels? In industrial premises, there could be constant
movement of incoming and outgoing material.
Security of the Equipment:
Equipment setting and protection
 Our next concern is the appropriate security of the equipment. Information processing
equipment needs to be handled carefully.
 The first level of equipment protection depends on physical location.
 The location should minimize the need for unnecessary access, as well as prevent
snooping.
Power supplies
 Information processing will come to halt in the absence of a suitable power supply.
This could be the worst type of a denial-of-service attack.
 These could be:
1. Taking power from multiple feeds of electric supply.
2. In case all the electric supplies fail simultaneously, you need to have an
uninterruptible power supply (UPS) with adequate battery capacity capable of
sustaining the initial load.
3. The UPS could in-turn be supported by backup generator sets.
 4. The backup generator would require adequate supply of fuel, which also needs to
be stored with replenishment, assured by the suppliers.
5. Proper installation of emergency lights should also be planned; lightning
protection should be provided to the power installation and the communication
lines.
Cabling security
 We really need to remember every detail, including the proverbial last nail.
 Do we know the physical layout of power cables and communication cables in our
premises?
 The first step will be to obtain wiring diagrams and update them.
 Then, do a physical inspection and assess the protection needs against damage,
interference or interception.
 Establish the best practices for laying the network cables as well as power cables, as
well as power cables, and ensure that these are actually implemented.
Equipment maintenance
 It is normally expected that due care is taken for equipment maintenance, and proper
records are maintained.
 From a security angle, two more measures are required. One is to maintain record of
faults that were noticed, and the second step is to maintain records of all equipment
sent off the premises for maintenance.
Security of equipment off premises
 Shrinking size of computers and expanding wide area networks have made the
computer equipment extremely mobile.
 Processing as well as storage capacity of mobile devices has been following Moore’s
law of doubling every 18 months.

Secure disposal or reuse of equipment

 Storage devices have long memory, unless specifically destroyed. Mere deletion is not
enough.
 This becomes important when old computer equipment is disposed off or transferred
to another location.
Secure Behavior:
Clear desk and clear screen policy
 Our concern for information security should not stop at securing the premises and
equipment.
 Sensitive information could be accessible in many forms, and it is necessary to
identify and protect the information in all its incarnations. The following guidelines
should be issued:
 Lock up all documents and media when not being used.
 Protect the computers and terminals through use of key locks, passwords, and
screen savers.
 Fax and telex machines used for confidential information should not be left
unattended.
  Access to photocopiers and scanners is restricted after office hours.
 Printing of classified information should be supervised and all printouts must be
removed immediately.
Removal of property
 Any movement of equipment, information or software should be only with proper
authorization.
 All these movements should be logged and records maintained for all outgoing and
incoming items.
 In these days of storage media capable of containing gigabytes of information, this
procedure becomes very important.
INFORMATION SECURITY ENVIRONMENT IN INDIA
 Most Indian companies that are aiming to go global will require certifying their ability
to maintain proper security levels when scouting for international clients.
 Information security is no more a mere legal requirement but it is fast becoming a
factor for companies to compete on and grow businesses.
 A “secure and reliable” environment-defined by strong copyright, IT and cyber laws-
is an imperative for the growth and future success of the ITES-BPO industries.
NASSCOM’s Security Initiatives:
 NASSCOM has taken a holistic view of Information Security through its ‘Trusted
Sourcing’ Initiative to strengthen the regulatory framework and further improve
India’s attractiveness as an outsourcing destination.
 This multi-pronged initiative is targeted at employees, organizations, enforcement
agencies and policy amendment, through a ‘4E Framework’-Engagement, Education,
Enactment and Enforcement.
 NASSCOM has been working closely with the ITES-BPO industry in India, to create
a robust and secure Information Security culture, and in association with other
stakeholders like the Indian Government on the issue of creating a relevant regulatory
environment.
 All these initiatives aim to further strengthen information security environment,
together with initiatives being rolled out by NASSCOM and the ITES-BPO industry.
Trusted Sourcing Initiative
 This initiative seeks to reinforce India as a secure and reliable technology partner.
NASSCOM has also instituted the 4E framework to establish India as a trusted
sourcing destination.
 This framework ensures highest standard of information security in the outsourcing
industry in India.

4Es Activities planned

Engage Creation of Global and National Advisory Boards on Security.

Meet all stakeholders in India and key markets.
Educate Reports to members on model contracts, SLAs, security
Practices and standards, industry legislation like HIPAA,
GLB, DPA Seminars to educate members, lawmakers and
Judiciary Create intellectual capital for members and other
Stakeholders

Enact Examine areas to strengthen legal framework in India Work

With coalitions and regulators in key markets to identify.
Relevant provisions.
Best security practices in member companies.

Enforce Established Cyber Labs in 4 cities-to be extended to other cities

Security audit of members, security certification for employees
NASSCOM’S Flagship Initiatives
Proposed Self-Regulatory Organization (SRO)
 The Self-Regulatory Organization has been conceptualized following an in-depth
gap analysis of the Indian law and various international standards (like US and EU
laws), identifying the loopholes and then attempting to amend the Indian law to
make it equivalent to the global standards which exist.
National Skills Registry (NSR)
 NSR is a centralized database of all employees of IT services and BPO companies
in India.
 This database contains third party verified personal, qualification and career
information of IT professionals.
 The objective of NSR is to improve recruitment practices in IT and BPO industry,
which will in turn help in maintaining India’s global competitive advantage.
Amendments to the Indian IT ACT
 The Union Cabinet (on October 16, 2006) has approved the amendment to the IT
act, 2000.
 NASSCOM worked with government to evolve recommendations for amendments
to further strengthen the Indian IT Act, 2000.
 The recommendations are focused around protecting overseas customer data and
tightening the punishment for defaulters.
 We understand that these amendments have incorporated most of the
recommendations, and are hopeful that this will lead to better handling of cyber
crime by enforcement authorities.
 We expect this to be discussed in the winter session of the Parliament.
LEGAL AND ETHICAL ISSUES :
CYBERSTALKING
 Cyber stalking is a crime in which the attacker harasses a victim using electronic
communication, such as e-mail or instant messaging (IM), or messages posted to a
Web site or a discussion group.
  Cyber stalking is a crime in which the attacker harasses a victim using electronic
communication, such as e-mail or instant messaging (IM), or messages posted to a
Web site or a discussion group.
 A cyber stalker relies upon the anonymity afforded by the Internet to allow them to
stalk their victim without being detected. Cyber stalking messages differ from
ordinary spam in that a cyber stalker targets a specific victim with often threatening
messages, while the spammer targets a multitude of recipients with simply annoying
messages.
COPYRIGHT
 Copyright is a legal right created by the law of a country that grants the creator
of an original work exclusive rights for its use and distribution. This is usually
only for a limited time. The exclusive rights are not absolute but limited
by limitations and exceptions to copyright law, including fair use.
 A major limitation on copyright is that copyright protects only the original
expression of ideas, and not the underlying ideas themselves.
 Copyright is a form of intellectual property, applicable to certain forms of
creative work. Some, but not all jurisdictions require "fixing" copyrighted works
in a tangible form. It is often shared among multiple authors, each of whom holds
a set of rights to use or license the work, and who are commonly referred to
as rights holders. These rights frequently include reproduction, control
over derivative works, distribution, public performance, and "moral rights" such
as attribution.
 Copyrights are considered territorial rights, which mean that they do not extend
beyond the territory of a specific jurisdiction. While many aspects of national
copyright laws have been standardized through international copyright
agreements, copyright laws vary by country.
 Typically, the duration of a copyright spans the author's life plus 50 to 100 years
(that is, copyright typically expires 50 to 100 years after the author dies,
depending on the jurisdiction). Some countries require certain
copyright formalities to establishing copyright, but most recognize copyright in
any completed work, without formal registration.
PHISHING
 Phishing is the attempt to obtain sensitive information such as usernames,
passwords, and credit card details (and sometimes, indirectly, money), often for
malicious reasons, by masquerading as a trustworthy entity in an electronic
communication.
 The word is a neologism created as a homophone of fishing due to the similarity of
using a bait in an attempt to catch a victim. Communications purporting to be from
popular social web sites, auction sites, banks, online payment processors or IT
administrators are commonly used to lure unsuspecting victims.
 Phishing emails may contain links to websites that are infected with malware.
Phishing is typically carried out by email spoofing or instant messaging, and it often
directs users to enter details at a fake website whose look and feel are almost
identical to the legitimate one.
 Phishing is an example of social engineering techniques used to deceive users, and
exploits the poor usability of current web security technologies. Attempts to deal
with the growing number of reported
SKIMMING
SKIMMING is a method of rapidly moving the eyes over text with the purpose of
getting only the main ideas and a general overview of the content.
A. Skimming is useful in three different situations.
• Pre-reading--Skimming is more thorough than simple previewing and can give a
more accurate picture of text to be read later.
• Reviewing--Skimming is useful for reviewing text already read.
• Reading--Skimming is most often used for quickly reading material that, for any
number of reasons, does not need more detailed attention.
B. Steps in skimming an article
• Read the title--it is the shortest possible summary of the content.
• Read the introduction or lead-in paragraph.
• Read the first paragraph completely.
• If there are subheadings, read each one, looking for relationships among them.
• Read the first sentence of each remaining paragraph.
a. The main idea of most paragraphs appears in the first sentence.
b. If the author's pattern is to begin with a questions or anecdote, you may find the last
sentence more valuable.

HINTS
INFORMATION SYSTEM SECURITY
 Integrity of the data sent and received.
 Confidentiality of the data so that it is not accessible to others.
 The data ought to be available to the people for whom it is meant
 Interrupt the data and cut it off.
 Intercept the data with the intent of spying on it.
 Interrupt the data and modify it and send a different data to the
receiver.
 Obstruct the data and fabricate new data and send it to the receiver
SECURITY ON THE INTERNET
 Vulnerable TCP/IP services-used in the local area networking environment
 Ease of spying and spoofing: unencrypted; e-mail, passwords
 Lack of policy configured unintentionally for wide-open internet access
 Complexity of configuration controls that are accidentally
 How secure are communications is the data protected once it is delivered to the e-
business?
 How are credit card transactions authenticated and authorized?
 Network and Website Security Risks- network and web server security risk
terminology.
 Denial-of-Service disable the network by flooding
 Viruses -security risk
E-BUSINESS RISK MANAGEMENT ISSUES
 Protection of Vulnerable Services
 Controlled Access to Site Systems
 Concentrated Security
  Enhanced Privacy
 Need for Usage Statistics on Network
 Policy Enforcement
INFORMATION SECURITY ENVIRONMENT IN INDIA
 certifying their ability to maintain proper security levels
 NASSCOM has taken a holistic view of Information Security through its ‘Trusted
Sourcing’
LEGAL AND ETHICAL ISSUES :
 Cyber stalking is a crime in which the attacker harasses a victim
 Copyright is a legal right created by the law of a country
 Phishing is the attempt to obtain sensitive information
 SKIMMING is a method of rapidly moving the eyes over text

UNIT –III
2 MARKS:

1. Define: EDIFACT message? (APRIL/MAY 2015)

2. Define E-Security?
3. Distinguish between B2B and B2C?
4. What is mean by Internet Gambling?
5. Discuss Phishing – Application Fraud?
6. Define Internet (APRIL/MAY 2016)
7. What is proxy server? (APRIL/MAY 2016)

5 MARKS:

1. What is the use of internet mail? Explain. (APRIL/MAY 2015)

2. Discuss the structure of an UN/EDIFACT interchange. (APRIL/MAY 2016)
3. Write down the E-business Risk Management Issues?
4. Explain Internet Gambling?
5. Define Threats to Children and Skimming?
6. What is the Information system Security used in the E-commerce?
7. Explain Security on the Internet?
8. Explain briefly about NII standards (APRIL/MAY 2016)

10 MARKS:

1. What are the two ways conducted by commerce over the internet? Explain.
(APRIL/MAY 2016)
2. Write down the Legal and Ethical Issues in E-security?
3. Explain in detail about Cyberstalking?
4. Discuss Information Security Environment in India.