1. 2009
V. Arun Kumar
Roll. No: 05
Finance -2
[E-COM & IT]
This report gives the reader a flamboyant view of E-commerce its advantage, and sub chapters

2. REPORT ON E-COM AND INFORMATION SECURITY
ASSIGNMENT (2)
SUBMITTED TO
PROF.SATISH RAJAMANI
Declaration
I hereby declare that the work is an original work done by me. If found that the work is copied
from any other individual and/or from any other source, the faculty/IIPM can take suitable
action against me.
NAME: V.ARUNKUMAR
ROLL.NUMBER:05
DATE: 08/01/2009
SIGNATURE:
2

3. TABLE OF CONTENTS
1) ELEMENTS IN A B2C TRANSACTION…………………………………………………………….4
2) KEY ISSUES IN INTERNATIONAL COMMERCE……………………………………………….5
3) VARIOUS CONNECTIONS………………………………………………………………………………6
4) DIFF BETWEEN INTRANET & EXTRANET………………………………………………………10
5) STEPS TO BUILD A WEB SITE……………………………………………………………………….11
6) BIBLOGRAPHY…………………………………………………………………………………………….16s
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4. 1. Elements that makeup a B2C transaction foe a online bookstore
I have taken amazon.com & barnesandnoble.com.
First the customer should login
And after login customer can search for the book and he can choose by making online
payment.
Payment system:
It allows the customer to choose an item for purchase; a payment must be made before the item is
shipped.
Payment form
 Cash (most common form of payment)
 Cheques
 Payment card (i.e. debit cards, credit cards, smart cards or automated teller machine
(ATM) cards)
But electronic payment is accepted. I.e. Credit cards are accepted.
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5. Fulfillment phase:
Once the payment is made the seller will give the date of delivery and it includes
shipping. Shipping charge should be made separately.
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6. 2. Key issues that a company faces when it conducts international commerce are
• International advisors are not always the first place to start and there are far to many amateurs without
the depth of experience or track record involved in cross border transactions
• Intellectual Property related matters and foreign ownership have a significant impact on business
growth
• A myriad of arrangements exit for international growth, all which vary from region to region and
business to business
• How do you manage and control business partners in foreign countries and what mechanisms should be
put in place to limit such exposure
• Tax implications, revenue flow and what jurisdiction is best for any international dispute.
• The reality for most is the asset value of the business will be impacted by the ability to assimilate and
comply with local regulation in a manner that maximises the position as a foreign entity.
E.g. Today most telecom industries face these issues.
Incase of Tata-Indi-com it happened.
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7. 3. Various connections
Type of Broadband DSL connections Wireless Cable connections
connections satellite connections
connections
Technology Broadband  It refers to a set Cable Internet uses
satellite is of technologies Wireless Access the cable
technically a that makes use provides television infrastruct
type of of local broadband ure to
broadband telephone access with a enable Internet
Internet networks for the ground-based access. It forms a
connection, transmission of antenna system layer over the cable
even though it’s digital data. (similar to a television
very different  Generally the mobile phone). A infrastructure. Bit
than either DSL speed of DSL PC card plugs rates from the
or cable. It is services ranges into the laptop Internet to the user
considered from about 256 and are about 50
“broadband” kilobits per communicates megabits per second
because of the second to 24000 over the while upstream
amount of data kilobits per airwaves with a rates range from 384
it carries in the second. local access kbps to 20 megabits
time it takes to point, which then per second. Cable
 A DSL transceiver
carry it - so relays the network users have
performs a self-
basically lots of information via a to use a single
test after which it
data in a cable or ADSL coaxial cable for
checks its
relatively short link to the ISP. Internet access due
connection with
period of time. to which speed
the computer to
Like all Internet Wireless reduces as a result
which it is
connections, services are of increasing
connected. The
broadband especially useful number of users
transceiver then
satellite starts for workers, such making use of the
tries to
with the as contractors same cable.
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8. provider. The synchronize with and consultants,
provider has a the digital who often have
central office on subscriber line no
land and a access fixed office.
satellite orbiting multiplexer Wireless
Earth’s (DSLAM) that broadband is a
atmosphere. allows telephone rapidly emerging
When data is lines to connect technology with
requested or to the Internet. moves underway
sent, it is The process of to make it more
transmitted synchronization is accessible in the
through that quick but near future.
office. complex and
However, involves several
before it gets to tests to optimize
your house, it performance
must be sent to based on the line
the satellite, in use. Once the
which acts as a synchronization
middle-man process is
between you completed, the
and the central computer can
office. exchange data
with the Internet.
In order for you
 The modem esta
to send or
blishes an IP
receive data
connection
through the
between the
satellite, you
local network
must first have a
and the Internet
satellite dish on
service provider.
the outside of
You might also
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9. like to read about
your home or
the dial up
office building.
Internet services.
It is through this
device that all
information is
transferred.
Advantage
It is available There is no need for It is cheaper than
everywhere. extra infrastructure It provides access other broadband
(since it only uses the to users even technologies.
A single satellite existing phone line). when they are
service is able to away from their It does not tie up the
support a large It does not tie up the office. phone line.
number of users phone line.
within the Once connected,
satellite The Internet connection other facilities such
"footprint" (this is not shared with as pay TV can be
makes it an anyone (unlike cable accessed.
attractive broadband access.
option for SMEs
that wish to
provide access
to many,
dispersed
offices or
branch
locations)
Disadvantage
Installation and DSL is not available The use of Cable is not available
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10. monthly service everywhere (it is only directional everywhere (it
fees will be available where the local antennas requires the physical
more costly telephone exchange is requires line-of cable to run past
than its DSL enabled). -site between the your premises).
broadband transmitting and
brothers DSL DSL may not operate at receiving points, The cable is shared
and cable. high speeds if the user which can cause by users in the same
resides at more than 4km problems in area and therefore
Heavy wind and from the telephone certain areas. as usage increases,
rain can exchange. the service slows
degrade the down.
quality of your
connection.
Broadband
satellite is not as
fast as DSL or
cable, but
significantly
faster than dial-
up.
4. Intranet and Extranet
Intranet Extranet
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11. • An intranet is a set of content shared by a • An extranet is a set of content shared by a
well-defined group within a single well-defined group, but one that crosses
organization. enterprise boundaries.
• Extranet is a good B2B and B2C tool.
• Intranet is not.
• An intranet is an information portal • An extranet is somewhat very similar to an
designed specifically for the internal intranet. Extranets are designed
communications of small, medium or large specifically to give external, limited access
businesses, enterprises, governments, to certain files of your computer systems
industries or financial institutions of any and to a certain large or privileged
size or complexity. Intranets can be customers.
custom-designed to fit the exact needs of Selected industry partners.
businesses no matter where they are Suppliers and subcontractors...
situated.
Therefore, a carefully designed extranet can bring
Users of intranets consists mainly of:
additional business to your company. Intranets
Members of the executive team. and extranets all have three things in common:
Accounting and order billing.
They both use secured Internet access to the
Managers and directors.
outside world.
Sales people and support staff.
Both can drastically save your company or
Customer service, help desk, etc.
organization a lot of money.
Both need a user ID & password to control
access to the whole system.
5. To build a website for a company
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12. Step1: Type of website:
Brochure type, catalogue type, so before deciding the website keeping in mind of competitors, I am
bringing this to your concern.
Brochure type is the easiest way so that we can save money.
Step2: Register a Domain Name:
A domain name is our business's address on the Internet; it will be used as part of our company's e-mail
address and its Web site address (URL). For instance, if our domain name is smallbiz.com, then our e-
mail address might be boss@smallbiz.com, and our Web site URL would be www.smallbiz.com.
Step 3: Host Your Own Web Site or Work with a Web Hosting Service
The Web site we build must be stored on a computer that has a reliable, secure connection to the
Internet. Hosting a Web site means providing the technical resources (the computer hardware and
operating system, the networking equipment, the Internet connection, etc.) needed to make our Web
site available to our customers. We can either host our own Web site or hire a Web hosting company,
such as Verio, to host our site. There are advantages and disadvantages to both.
Hosting our Own Site
 Advantages: We are in complete control. We have unlimited flexibility: We choose our own
hardware, operating system, database, and other tools. We do not have to learn another
company's Web hosting procedures. We will not pay additional charges for hard disc storage
space or bandwidth usage.
 Disadvantages: Purchasing and maintaining computer hardware and software can be expensive.
Obtaining a reliable, fast connection to the Internet can be very expensive. We will need a high
degree of technical knowledge, and if we have any problems, we're on our own.
Working with a Web Hosting Service
 Advantages: Reliable and secure computer hardware with a fast connection to the Internet. Low
start-up costs and relatively inexpensive monthly fees. We can get our Web site online much
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13. faster. Technical support is often free or available at a nominal charge. Purchase only the services
we need and add more as our business grows.
 Disadvantages: we are limited to the software and hardware options the hosting service offers.
Monthly fees may vary depending on how many customers visit our Web site. Not all hosting
services are created equal: it takes some research to find reputable companies that will be a
trusted advisor and help us grow our business.
Step 4: Build the Web Site our self or Hire a Web Designer and Developer
Someone must design the look of our site, create the images, and write the programming code. Should
we do it our self or hire a Web designer and developer? The decision boils down to a few factors:
 Does our Web hosting service offer any tools and templates to help us? If so, we may be able to
quickly create a Web site with little or no technical knowledge, and at no additional cost. Also,
there are many free scripts available that enable us to add features to our Web site, such as a
traffic counter or a customer feedback form, with very little technical knowledge.
 If no templates are available, the next best do-it-our self option is using WYSIWYG HTML/Web site
software like FrontPage. These tools enable us to design a Web site with very little technical
knowledge, and many include templates.
 If we do not have templates or WYSIWIG software available, do we have the necessary skills in-
house to design our Web site? To do the job our self, we will need graphic design skills, the ability
to create graphics, HTML and JavaScript programming skills, some knowledge of information
organization, and a general familiarity with Internet technology and software. If we don't have
these skills, are we willing to take the time to obtain them?
 What is our Web site budget? Hiring a designer and programmer will probably cost more than
doing it our self. Web designers typically charge from $50-$100 per hour. Before we hire a
designer, make sure we have a clear idea of what we want our site to look like and how we want
customers to navigate it.
 Do we have some skills but lack others? If so, control our costs by hiring a designer or developer to
do only the work that we cannot.
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14. Step 5: Optimize our Web Site for Search Engines:
Many customers will use a Web search engine to find us, so making our Web site "search engine
friendly" is extremely important. To do this, first create keywords that describe our business. For
instance, if we sell reconditioned laser printer cartridges, then our keywords might
include reconditioned, refurbished, used, laser, printer, toner, cartridge, ink, and supplies. We might also
include words like quality, inexpensive, and guaranteed, depending on how we differentiate our self
from your competitors.
Step 6: Thoroughly Test our Web Site, and Then Go Live:
Once we've built our Web site, test every aspect of it before opening up for business. Click on every link.
Make sure all the text, images, colors, and page layouts are correct. Check our spelling one more time-
spelling mistakes are likely to make customers think our business is sloppy and amateurish.
If we have an e-commerce component, get out our credit card and order something. If there are any
problems, find them now before our customers do. There are many free tools that will help us test our
site: go to www.netmechanic.com for spellcheckers, link checkers, Web browser compatibility checkers,
and more.
Once we are satisfied that everything works properly, put our site online and we're in business!
Step 7: Promote our Site:
How we promote our site depends on our budget, but there are several free things we should do
immediately:
 Be sure to include our Web site's URL in all our printed marketing and advertising materials. Print
it on our business card, on our company's letterhead, in our yellow pages ad, and on all our direct
mail pieces. Wherever we print our company's name, print our URL.
 Register our Web site with the big search engines: Google, Yahoo, AltaVista, and MSN. Chances
are that our customers will start at one of these sites when they are looking for information about
products and services.
 There are many specialized Web directories that only list businesses in a certain industry. For
instance, if our company sells novelty t-shirts, we would want to list its information on www.t-
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15. shirtlinks.com. The best way to find these directories is to use a search engine like Google.
Register our Web site on every appropriate directory we can find.
 If we belong to any business associations, list our company's information on the association's Web
site.
Step 8: Analyze our Web Site Traffic:
If we own a restaurant, it is impossible to know how many people thought about making a reservation,
but it is easy to count how many people sit down to eat. On our Web site, we can track many statistics
critical to improving our business, including how many unique visitors came to our site, what they
looked at, how many just browsed, how many bought something, how many are repeat customers, and
how effective our advertising/marketing campaigns are.
To get these statistics we must have Web analysis software installed on our site. Some of this software,
such as Stat Counter, is free but has limited functionality. Commercial software, such as Urchin, can
easily cost $600-$1,000 but offers more detailed analysis and far better reports. Some Web hosting
companies offer inexpensive analysis software; for instance, Verio offers free use of Urchin to everyone
who signs up for a hosting plan.
Step 9: Obtain Customer Feedback:
Web sites offer many ways to obtain customer feedback. The Web statistical analysis software discussed
in Step 8 is a form of customer feedback. Two additional methods are customer surveys and community
forums.
We can use customer surveys on our Web site to ask specific questions. Research shows that customers
are more likely to fill out a Web site survey than answer a telephone or face-to-face survey.
Interestingly, customers are also more likely to give honest answers to a Web survey. Creating a Web
survey takes some HTML and JavaScript development skill, but simple surveys are easy to create.
Another option is to purchase Web survey software, which can cost from $50-$1,000 per month.
Community forums (also called message boards) are a more open, less formal way to gather customer
feedback. Customers post messages on our site, most often to other customers, to discuss their
opinions. We can use the community forum to ask direct questions, clarify misunderstandings, and
respond to complaints. Because anyone can post messages and the messages are available for everyone
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16. to see, community forums are susceptible to manipulation by our competition. Properly managing a
forum can be rewarding but very time-consuming.
Community forum software varies in price from free to several thousands of dollars. Setting up this
software usually takes some technical skill. For more information, see our article "Developing Effective
Online Surveys for Customer Feedback."
Step 10: Rethink, Refresh, Revise:
At this point, we've put a lot of work into building our Web site. It's tempting to sit back and watch it
run, but we can't afford to do that. Running a successful site means updating it regularly.
We don't have to completely redo our site every month, but freshen it up. A Web site that looks the
same and has the same product information month-after-month becomes stagnant. Our customers will
lose interest and drift away. Frequently change a few colors, replace one your key graphics, change our
greeting, or add the latest news about our company.
Keep on top of our sales data, our Web analysis statistics, our customer feedback, and what our
competitors are doing. Use this information to substantively improve the structure of our Web site, as
well as the products and services we offer.
Invest wisely in our Web site and it will be a critical business tool that drives our company's growth and
success.
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17. BIBLOGRAPHY:
• http://www.iec.org/online/tutorials/e_commerce/topic01.asp
• en.wikipedia.org/wiki/E-commerce
• www.weblinkindia.net/web-articles/ecommerce
• www.imrbint.com
• www.chilanti.com/olbooks/business
• www.amazon.com
• www.barnesandnoble.com
Reference book:
• The Complete E-Commerce Book: Design, Build and Maintain a Successful Web-Based Business
(Paperback)
By Janice Reynolds.
• Engineering management by Jayakumar
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