Dhannraj Nath E-commerce project

Electronic

Commerce

Submitted by

Dhanraj Nath BCA- IIIrd Year

Bachelor of Computer Application

Dezyne Ersquocole College Ajmer

wwwdezyneecolecom

Acknowledgement

I am thankful to Dezyne Ersquocole College to help in making this Project on E-

Commerce

A special thanks to MsJyoti Phulwani to guide us step by step in the making of

this Project Report

Thanking You

Dhanraj Nath

Bachelors of Computer Application

3rd year

Contents

1 Chapter-1

Introduction

2 Chapter-2

Electronic commerce and the world ndashwide ndashweb

3 Chapter-3

Architecture Framework for E-commerce

4 Chapter-4

Technology Behind The Web

5 Chapter-5

Network Security And Firewalls

6 Chapter-6

Electronic Commerce Companies

7 Chapter-7

Pictorial Representation (E-Buying methodology)

8 Chapter-8

Conclusion

Chapter 1

Introduction

Every individual or company that wants to make money and become the next

Microsoft needs to understand the market potential business implication and

technical foundation of electronic commerce But what is electronic commerce

everybody is talking about

How does it affect the organization way of doing business What sort of technical

and business are needed to be successful Companies amp consumer are discussing

that global networking amp other technological innovation are powerful assets if used

as Positive weapons in their day-to-day activity E-commerce is associated with the

buying and selling of informationrsquos product and service via computer network today

Consumer desires are very hard to predict pin point or decipher of electronic

markets whose shapes structure and population are still in early stages Needs

envisioned included entertainment on demand including five hundred channel TV

video on demand games on demand electronic retailing via catalogs and kiosk and

shopping network

In future viewer will decide what they want to see and they want to participate a

successful market places are expected to those that cater to consumerrsquos loneliness

boredom education and careerin a highly competitive society where neighbors

seldom talk to one another these outlets give consumer someone to though after

going home

Let take a look at the changing conditions in the ldquonew economyrdquo with respect to the

retail industry Consumers are pushing retailers to the wall demanding lower prices

better quantity and a large-section of in-seasons goods retailers are scrambling to

fill the order They are slashing back Office costs reducing profit ndash margins reducing

cycle times buying more wisely and making huge investment in technology

They are revamping distribution channels to make sure that warehouses cost are

down by reducing their average inventory levels and coordination the consumer

demand and supply pattern In the push to reduce prices more and more retailers

are turning to overseas suppliers in part because of cheaper labor costs

Retail are the immediate line of fire and had to do the cost cutting They put the

pressure on the manufacturer and then to the supplier end of the pipeline E-

commerce is forcing companies to rethink the existing ways of doing target

marketing relationship marketing and even event marketing

Adaptation would include moving towards computerized ldquopaperlessrdquo operation to

reduce trading costs and facilitate the adaption of new business process Japanese

approach JIT (Just in time) system total quality control and quality circles are focused

now for delivery of goods through electronic commerce

Chapter 2

Electronic commerce and the World-Wide-Web

We have broadly defined electronic commerce as a modem business methodology

that address the desire of firms consumers and management to cut costs while

improving the quality of goods and increasing the speed of services The need for

electronic commerce stems from the demand within business and government to

make better use of computing that is better apply computer technology to improve

business process and information exchange both within an enterprise and across

organization

In short electronic commerce appears to be integrating force that represents the

digital convergence of twenty-first century business application and computing

technology

Electronic commerce applications emphasis the generations and exploitation of new

business opportunity and to use the popular buzzword ldquogenerate business valuerdquo

For instance when buyer ndashseller transactions occur in the electronic market place

information is accesses observed arrange and sold in different ways in fact the

information about a product of service is separated from the physical product or

services and has become important on its own in some cases the information can

become as crucial as his actual product or service in term if its effect on a company

lsquos in short information ways business transaction are creating new ways of doing

business and even new type of business

Electronic commerce application are quite varied In its most common from e-

commerce is also used to donate the paperless exchange of business information

using EDI electronic mail (E-mail) electronic bulletin board electronic funds transfer

(EFT) and other similar technologies These technologies are normally applied in

high-pay of areas recognizing that paper ndash handling activity usually increase

expense without adding value on the other hand the term electronic commerce is

used to describe a new online approach to perform traditional function such as

payment and funds transfer order entry and invoicing inventory management Cargo

tracking electronic catalogues and point ndash of ndash sale data gathering More recently

company have realized that the advertising marketing a customer support function

are also part of electronic commerce application domain These functions act as

initiator order management cycle that incorporates the more established motions of

electronic commerce

In short what we are witnessing is the use of term electronic commerce as an

umbrella concept to integrate a wide range of new and old application

Despite the change taking place business have three goals stay competitive

improve productivity and deliver quality service These goals are the giving buoys for

firms plotting their course in the turbulent waters of electronic commerce There are

other factors that companies need to keep in mind First most companies have

already made enormous information technology investment to automate their key

internal processes such as purchasing invoicing and other similar function So some

aspect of technological infrastructure for electronic commerce are already in place

the challenge now becomes how to effectively leverage this investment second

prices for computer hardware and equipment continue to fall marking information

technology an appealing investment for many business eclectically when itrsquos used for

high impact application such as linking their distributed operations however

investment without a clear idea of the electronic commerce architecture being would

be akin to driving with blinders onas a result companies that decided that electronic

commerce application represent one of the best strategic investment they can make

must first exert some effort to understand the technology underlying electronic

commerce applications

At first glance it appears that messaging ndashbased technology such as EDI and mail-

enabled application combined with database and information management services

form the technical foundation for effective electronic commerce solutions No single

one of these technologies can deliver the full potential of electronic commerce

however What we require is an integrated architecture the likes of which has never

been seen before This integrated architecture is emerging in the form of the World

Wide Web (WWW)as electronic commerce becomes more nature we are beginning

to see sophisticated application being developed on the WWW Technically and

commercially the www client ndash server model seems poised to become a dominant

technology

Electronic

Commerce

Electronic Document Interchange

Electronic data

interchange (EDI)

Marketing advertising Electronic

Publishing Sales customer support

E-mail Fax

Electronic Messaging

Electronic funds

transfer (EFT)

Information sharing Corporate

Digital

Library Collaborative work

Chapter 3

Architecture Framework for E-commerce

The software framework necessary for building electronic commerce application is

little understood in existing literature In general a framework is intended to define

and create tools that integrate the information found in todayrsquos closed system and

allow the development of e-commerce applications It is important to understand that

the aim of the architecture framework itself is not to build new database management

system data repository computer language software agent- based transaction

monitors or communication protocols Rather the architecture should focus on

synthesizing the diverse resources already in the corporations to facilitate the

integration of data and for better application

We propound that the electronic commerce application architecture consists of six

layer of functionality or services

(1) Applications

(2) Brokerage service data or transaction management

(3) Interface and support layer

(4) Secure messaging and electronic document interchange

(5) Middleware and structured document interchange and

(6) Network infrastructure and basic communication services

Application service Customer-to business Business to ndashbusiness Intra-organizational

Brokerage and data management Order Processes ndash Mail ndashOrder Purchasing Payment Scheme ndash Electronic Cash Clearing House And Virtual Mail

Interface layer Interactive Catalogue Directory Support Function Software Agents

Secure messaging Secure Hypertext Transfer Protocol Encrypted E-Mail EDI Remote Programming (RPC)

Middleware infrastructure Structured documents(SGMLHTML) Compound documents (OLE OpenDoc)

Network infrastructure Wireless-cellular radio PCS wireless-POTS co-axial fiber optics

These layer cooperate to provide a seamless transition between todayrsquos computing

resources and those of tomorrow by transparently integrating information access and

exchange within the context of the chosen application As seen in above fig

electronic commerce application are based on several elegant technologies But only

when they are integrated do they provide uniquely powerful solutions

In the ensuing discussion of each of these layer we will not elaborate on the various

aspect of the network infrastructure that transports information

1 Electronic commerce application service

The application service layer of e-commerce will be combined of existing and future

applications built on innate architecture These distinct classes of electronic

commerce application can be distinguished Customer ndash to- business business ndash to-

business and intra organization

Private Commerce

Engineering and

Research

Manufacturing

and

Production

Accounting

Finance and

Management

Procurement distribution and logistics

Advertising sales customer service

Internal Publishing

Global suppliers

Customer

Classic EDI

Customer-oriented

Electronic Commerce

Customer-to-business transaction

We call category market place transaction In a market place transaction customer

learn about products differently through electronic publishing buy then differently

using electronic cash and secure payment systems and have them delivered

differently Also how customer allocate their loyalty may also be different

In light of this organization itself has to adapt to a world where the traditional

concepts of brand differentiation no longer hold-where ldquoqualityrdquo has a new meaning

where content may not be equated to ldquoproduct ldquo where ldquodistributionrdquo may not

automatically mean ldquophysical transportrdquoin this new environment brand equity can

rapidly evaporate forcing firms to develop new ways of doing business

Business-to-business transaction

We call this category market-link transaction Here business government and other

organizations depend on commuter-to-computer communication as a fast an

economical and a dependable way to conduct business transactions Small

companies are also beginning to see the benefits of adapting the same methods

Business-to-business transactions include the use of EDI and electronic mail for

purchase goods and services buying information and consulting services submitting

requests for proposals and receive proposals

For example the current accounts payable process occurs through the exchange of

paper documents Each year the trading partners exchange millions of invoices

checks purchase orders financial reports and other transactions Most of the

document are in electronic form at their point of origin but are printed and key-entered

are the point receipt The current manual process of printing mailing and rekeying is

costly time-consuming and error- prone Given this situation and focus with the need

to reduce costs small business are looking towards electronic commerce as a

possible savior

Intra-organizational transactions

We call this category market-driven transactions A company becomes market driven

by dispersing throughout the firm information about its customers and competitors

by spreading

Strategic and tactical decision making so that all units can participate and by

continuously monitoring their customer commitment by making improve customer

satisfaction an ongoing objective To maintain the relationships that are critical to

delivering superior customer value management must pay close attention to

services both before and after sales

2 Information brokerage and management

The information brokerage and management layer provide service integration

through the notion of information breakage the development of which is necessitated

by the increasing information resource fragmentation We use the notion of

information brokerage to represent an intermediary who provides service integration

between customers and information providers given some constraint such as a low

price fast service or profit maximization for a client

Information brokerage for example are rapidly becoming necessary in dealing with

the voluminous amounts of information on the networks As online database migrate

to consumer information utilities consumers and information professionals will have

to keep up the knowledge and ownership of all these system Hosersquos got how do you

use it What do they charge Most professionals have enough trouble keeping track

of files of interest on one or two database services With all the complexity associated

with large number of online database or service bureaus itrsquos impossible to accept

humans to do the searching It will have to be software programs-information brokers

or software agents to use the most popular terms ndashact searcher behalf information

broke AGE does more than just searching

3 Interface and support services

The third layer interface and support services will provides interfaces for electronic

commerce applications such as interactive catalogues and will support directory

service- function necessary for information search and access These two concepts

are very different Interactive catalogues are the customized interface to consumer

application such home shopping An interactive catalog is an extension of the paper-

based catalogue and on corporates additional feature such as sophisticated graphics

and video to make the advertising more attractive

Directories on the other hand operate behind the scenes and attempt to organize

the enormous amount of information and transactions generated to facilitate

electronic commerce directories would play an important role in information

management functions For instance take the case of buying an airline ticket with

several stock overs with a caveat that the time between layovers be minimized This

search would require several queries to various online directories to find empty seats

on various airlines and then the availability of seats would be coordination why the

amount of time spent in the airport terminals

4 Secure messaging and structured document interchange

services

The importance of the fourth layer secure messaging is clear Everyone in bus

knows that electronic messaging is a critical business issue Consider a familiar bus

scenario You hand over an urgent fax on Monday find out on Tuesday that itrsquos still

sitting in your fax operatorsrsquo desk What happened the line was busy and he thought

he would try again later Or the number was wrong but he forgot to let you know or

you are in London and you need to send a spreadsheet that details a marketing plan

for a product introduction strategy to a co-worker in New York This must be done

today not tomorrow when the courier service would deliver There is a solution to

these common and frustrating problems Itrsquos called integrated messaging a group of

computer services that through the use of a network seed receive and combine

messages focus and large data files Some better known example are electronic

mail enhance fax and electronic data interchange

Broadly defined messaging is the software that sits between the network

infrastructure and the clients or electronic commerce application masking the

peculiarities of the environment Other define messages as a framework for the total

implementation of portable application divorcing you from the architectural primitives

of your system In general messaging product are not application that solve

problems they are more enabler of the application that solve problems

Messaging services offer solution for communicating non-formatting (unstructured)

data such as purchase order shipping notices and invoices Unstructured messaging

consists of fax e-mail and form based system like lotus notes

Structured documents messaging consists of the automated interchange of

standardized and approved messages between computer applications via

telecommunication lines Example of structure document messaging include EDI

Messaging is gaining momentum in electronic commerce and seems to have many

advantagesit support both synchronous (immediate) and asynchronous (delayed)

message delivery and processing with asynchronous messaging when a message

is send work continues (software doesnrsquot wait for a response)this allow the transfer

of messages through store ndash and ndash forward methods

The main disadvantages of messaging are the new types of application it enables

which appear to be more complex specially to traditional programming and the

jungle of standard lsquos in involves because of the lack of standard lsquos there is often no

interoperability between different messaging vendors leading to islands of messaging

also security privacy and confidentiality through data encryption and authentication

technique are important issue that need to resolve for ensuring the legality of the

message based transaction themselves

5 Middleware service

Middleware is relatively new concept that emerged only recently links so many other

innovation it came into being out of necessity user in the 1970rsquos when vendors

delivered homogenous system that worked didnrsquot have a need for middleware when

condition changed along with the hardware and the software the organization couldnrsquot

cope The tools ware inadequate the backlog was enormous and the pressure was

overwhelming and the user ware dissatisfied something was needed to solve all the

interface Translation transformation and interpretation problem that work driving

application developerrsquos carry

With the growth of networks client server technology and all other forms of

communicating betweenamong unlike platforms the problem of getting all the pieces

to work together grew from formidable to horrendous As the cry for distributed

computing spread user demanded interaction between disk similar systems

Networks that permitted sheared In simple terms middleware is the ultimate

mediator between divers software programs that enables them talk to one another

6 Transparency

Transparency utilize that user should be unaware that they are accessing multiple

system Transparency is essential for dealing with higher-level issue than needed

physical media and interconnection that under line network infrastructure is in charge

of The ideal picture is one of a ldquovirtualrdquo network a collection of work group

departmental enterprise and inter enterprise LANrsquos that appears to the end or client

application to be seamless and easily accessed whole

Transparency is accomplished using middleware that facilitated a distributed

computing environment This gives user and application transparent accessed to

data computation and other resource across collection of multivendor

heterogeneous system The strategic architectures of every major system vendor are

now based on some form of middleware The key to realizing the theoretical benefit

of such as architecture is transparency Users need not spend their time trying to

understand where something is Nor should application developers have to code into

their application the exact location of resources over the network The goal is for the

applications to send a request to the middleware layer which then satisfied the

request any way it can using remote information

7 Transaction security and management

Support for transaction processing (TP) is fundamental to success in the electronic

commerce market Security and Management are essential to all layers in electronic

commerce model Transaction integrity must be given electronic commerce

middleware provides the qualities expected in the standard TP System the so-called

ACID properties (Atomicity Consistency Isolation and Durability)

World Wide Web as the Architecture

Electronic commerce depends on the unspoken assumption that computers

cooperate efficiently for seamless information sharing Unfortunately this

assumption of interoperability has been supported by the realities of practical

computing Computing is still a world made up of many technical directions product

implementations and competing vendors This diversity while good for innovation

causes problem as the E-Commerce applications try to impose a certain discipline

on the proliferating computers and networks It is ironic that real effect of computing

is all too often the prevention of data sharing due to incompatibility-architectures data

formats and communication protocols

What does the WEB Encompass

The Web has become an umbrella for a wide range of concepts and technologies

that differ markedly in purpose and scope These include the global hypertext

publishing concept the universal reader concept and the client-server concept

The global hypertext publishing concept promotes the idea of seamless information world in which all on-line information can be accessed and retrieve in a consistent and simple way To access information in this seamless world we will need the ability to address many types of data-text files images sound files and animation sequences The universal readership concept promotes the idea that unlike the segmented applications of the past we can use one application-a universal (or common) user interface-to read a variety of documents This concept implies that once information is published it is accessible from any type of computer in any country and that any (authorized) person merely needs to use one simple program to access it This is accomplished in the web by using a core browser or application that is augmented by supporting applications The core browser implements only minimal functionality and attempts to offload more specialized work onto the supporting applications The client-server concept allows the web to grow easily without any centralized control Anyone can publish information and anyone (as long as He or She is authorized) can read and download it Publishing information requires a server program and reading data requires a client browser All the clients and all the servers are connected to one another by the Internet The various standard protocols allows all clients to communicate with all servers In practice the web hands on a number of essential concepts including the following i) The addressing schemes known as Uniform Resource Locator (URL) makes the hypermedia world possible despite many different protocols ii) A network protocol known as hypertext transfer protocol (HTTP) used by client browsers and servers offers performance and features not otherwise available iii) A mark-up language (HTML) which every web client is requires to understand is used for the representation of hypertext documents containing text list boxes and graphics information across the net

Chapter 4

Technological Behind the Web

Information providers (or publishers) run programs (called servers) from which the browsers (client can obtain information) These programs can either be Wed servers that understand the hypertext transfer protocol (HTTP) ldquoGatewayrdquo program that convert an existing information format to hypertext or a non-HTTP server that Web browsers can access-anonymous FTP or Gopher servers Web servers are composed of two major parts the Hypertext Transfer protocol for transmitting documents between servers and clients and the hypertext Mark-up language (HTML) format for documents The link between HTML files and the HTTP servers is provided by the Uniform Resource Locators (URLs)

Uniform Resource Locator The documents that the browsers display are hypertext that contains pointers to other documents The browsers let you deal with the pointers in a transparent way ndash select the pointer and you are presented with the text to which it points This pointer is implemented using a concept that is central to Web browsers Uniform Resource Locators (URLs) One way to think about URLs is to use the libraries and location on a shelf as a metaphor A URL for a digital library would be a unique call number that provides the exact location of every book in the world including the country city street and library shelf location In practice URLs are the strings used as addresses of objects (documents images) on the Web Think of them as analogous to your E-mail address Just as your address is unique and maybe used by any other Internet users to send you mail without knowing exactly where you are a URL marks the unique location on the Internet where a file or service can be found URLs follow a fairly consistent pattern The first part describes the type of resource the second part gives the name of the server housing the resource and the third part gives full file name of the resource URLs are Universal in that they provide access to a wide range of network services which required separate applications in the past For a new network protocol one can easily form an address as the set of parameters necessary to retrieve the object If these parameters are encoded into a concise string with a prefix to identify the protocols and encoding one has a new URL scheme Take a look at the URL formats below FTP ftpserveraddresscompletefilename Gopher gopherserveraddressportdirectoryfilename TELNET telnetserveraddressport HTTP httpserveraddressporthomepagehtml NEWS newsmiscstocksinvest These are URLs for Internet news articles and news groups (The NNTP protocol) and for HTTP archives for TELNET destinations E-mail addresses and so on The same can done for names of objects in a given name space For example the URL

of the main page for the Web project happens to be httpwebw3orghypertextwebTheProjecthtml The prefix ldquoHTTPrdquo in the preceding example indicates the address space and defines the interpretation of the rest of the string The HTTP protocol is to be used so the string contains the address of the server to be contacted and a sub string to be passed to the server As noted earlier different protocols use different syntaxes but they do have a small amount in common For example the common URL syntax reserve the solidus () as a way of representing a hierarchical space the pound label () as a way of pointing inside the document and question mark () as a separator between the address of an object and the query operation applied to it Hierarchical spaces are useful for hypertext where one ldquoworkrdquo maybe split up into many interlinked documents the allows relative name to exploit the hierarchical structure and allows links to be made within the work independent of the higher parts of the URL such as the server name URLs are central to the web architecture The fact that it is to address an object

anywhere on the internet is essential for the system to scale and for the information

space to be independent of network and server topology

Chapter 5

Network Security and Firewalls

The ability to conduct business on a public network has strong attraction ndash and the

potential for big savings Security and confidentiality are essential however before

business can conduct financial transaction over the internet and a lack of widespread

security measures remains at this time At present credit card numbers financial

records and other important information are not encrypted and can be intercepted by

any savvy internet hacker

The discussion of security concerns in electronic commerce can be divided into two

broad types-

1 Client-server security uses various authorization methods to make sure that only

valid user and programs have access to information resources such as databases

Access control mechanisms must be set up to ensure that properly authenticated

user are allowed access only to those resources that are entitled to use Such

mechanism includes password protection encrypted smart cards biometrics and

firewalls

2 Data and transaction security ensures the privacy and confidentiality in electronic

messages and data packets including the authentication of remote users in network

transaction for activity identity such as on-line payment The goal is to defeat any

attempt to assume another identity while involved with electronic mail or other forms

of data communication Preventive measures include data encryption using various

cryptographic methods

Data and Message Security

The lack of data and message security on the internet has become a high profile

problem due to increasing number of merchants trying to spur commerce on the

global network For instance credit card numbers in their plain text form create a risk

when transmitted across the internet where the possibility of the number falling into

the wrong hands is relatively high Would you expose your customers to that risk

Just the thought of ldquosnifferrdquo program that collect credit card number en masse is

enough to keep merchants away from on-line shopping given the possible lawsuits

and other liabilities issues In short the lack of business transaction security is widely

acknowledge as a major impediment to white spread E-commerce

Encrypted Documents and Electronic Mail

E-mail users who desire confidentiality and sender authentication are using

encryption Encryption is simply intended to keep personal thoughts personal Some

users are already using Pretty Good Privacy (PGP) other are starting to use Privacy

Enhanced Mail (PEM)

E-mail is typically encrypted for the reasons that all network correspondence is open

for eavesdropping Internet e-mail is obviously for less secure than the postal system

where envelopes protocol correspondence from casual snooping A glance at the

header area of any e-mail message by contrast will show that it has passed through

a number of nodes on its way to you Every one of these nodes prevent the

opportunity for snooping

Chapter 6

Electronic Commerce Companies

Chapter 7

Pictorial representation (E-Buying methodology)

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 8

Step 7

Step 9

Step 10

Step 11

Chapter 8

Conclusion

E-commerce is growing tremendously A lot of companies have joined between the

period July and August Online retail is still a tiny spot in Indiarsquos retail market of about

$500 billion a year but it is growing at a quick pace A study by retail consultancy

Technopark predicts Indiarsquos e-tailing market will reach $32 billion by 2020 from $23

billion 2014

Ethnic Indian clothes and casual wear are favorites products but unusual products

like pets-too are being offered online With the huge growing that e-commerce has

witnessed in recent times analysts like Devangshu Dutta says there is scope for

more players to come in but some also warn about the risks the space is fraught

with as only a few may have changes of making it with they also see consolidation

in the sector going forward

Bibliography

Frontier of Electronic commerce by Ravi Kalakata and Andrew BWhinston

Big E-commerce deals stir up sector-Economic Times

wwwFlipkartcom