E-Commerce Technology Made Easy

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S. Sridhar* et al.
(IJITR) INTERNATIONAL JOURNAL OF INNOVATIVE TECHNOLOGY AND RESEARCH
Volume No.5, Issue No.3, April – May 2017, 6183-6198.
E-Commerce Technology Made Easy

S.SRIDHAR
Professor & Director RV Centre for Cognitive & Central Computing, R.V.College of Engineering, Mysore
Road Bangalore-560059 India
Abstract: Electronic Commerce is the Modern Business Methodology To Address, Needs Of
Organizations, Merchants, Commerce to Cut Costs and to do the following :-To improve
quality/services/speed of delivery; more commonly associated with buying and selling of information,
products and services via computer networks today; EDI – Electronic Data Interchange; Latest and
dependable way to deliver electronic transactions by computer to computer communication combined
with (JIT) ; Just in time manufacturing methods; EDI and email used for many years. e-commerce is a
transaction of buying or selling online. Electronic commerce draws on technologies such as mobile
commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and automated data
collection systems.
Key words : Modern Business Technology; EDI; Mobile Commerce; Internet Marketing;
I. INTRODUCTION 2.1 Elements Of E-Commerce Applications
Electronic Commerce is the Modern Business
Methodology To Address, Needs Of
Organizations, Merchants, Commerce to Cut
Costs and to do the following :-To improve
quality/services/speed of delivery; more
commonly associated with buying and selling of
information, products and services via computer
networks today; EDI – Electronic Data
Interchange; Latest and dependable way to deliver
electronic transactions by computer to computer
communication combined with (JIT) ; Just in time
manufacturing methods; EDI and email used for
many years. e-commerce is a transaction of buying
or selling online. Electronic commerce draws on
technologies such as mobile commerce, electronic
funds transfer, supply chain management, Internet
marketing, online transaction processing,
electronic data interchange (EDI), inventory
management systems, and automated data
collection systems. Modern electronic commerce 2.2 Global Information , Long-Distance N/W
typically uses the World Wide Web for at least one
part of the transaction's life cycle although it may It is Available via coaxial or fiber cable, Owned by
also use other technologies such as e-mail. interexchange carrier ( IxCs) with the following
facilities :-International transmission likely; Eg.
II. INFORMATION PROCESSING Current large scale capacity of fiber optic
ACTIVITY connections between USA and Europe ( TAT-8) to
It is in the form of transactions as follows:- operate at gigabit rate ;Services provided by At &
transport between computer and consumer over T, MCI, Sprint, wiltel etc.; There are over 475
public networks; home shopping; banking for smaller carriers; ; Uniform speed / efficiency /
security and electronic cash/ credit etc; trading levels of technology / cost of telecom services for
partners; market research; managerial decision voice and data services; AT & T has a good
making; organization problem solving; operations presence inwireless market as well as local access
and supply chain management and interaction to customers
advertising / sales / marketing. To-day Internet 2.3 Satellite Network
Super highway ( I – way) is possible to transform
information transport technology for e-commerce It is Initially used to transport long distance
applications. telecommunications and one way video broadcasts
. Fiber optics changed the role of satellites in
global communication industry. Fiber optics is the
choice since it provides higher bandwidth than
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S. Sridhar* et al.
satellites. Also the following are valid :-Satellite – - WWW server Functions
accessible from any spot on the globe. ; Can - Third-party Services
provide broad band digital services including voice o Digital Library of document / Data Server
and data & video.;Over 150 communication o Third party information processing tools/
satellites are providing wide range of services; services
Geosyn chronous orbit ( GEO)satellites are placed o Electronic payment servers
in a high circular orbit 22,300 miles above equator; Essential concepts in Web
GEO satellites rotate with earth and appear to be
URL : Uniform resource locator (Address Scheme)
stationary; Used to broadcast a wide beam to
ensure the wide area coverage; Mortorola’s / HTTP: Network Protocol – Hyper text transfer
Microsoft & Mcaw cellular- provide basic protocol
infrastructure to beam data / voice practically
HTML: Mark-up Language representing hypertext
anywhere in the world; Next VSAT ( very small
documents containing list boxes graphics.
aperture terminal) satellite uses small ground
antennas to provide low data rate point to point
N/W services . Day by day this is increasing for
retail markets.
2.4 I-Way
E-commerce applications are dependent on I-way.
In the case of cable TV , two-way interactive
applications are not possible. Whereas in I-way,
small business information of publishing using
tools like www( world wide web) are possible.
Possibilities are mentioned below :- Publish 3.1 Internet Application And Utility Programs
information by set-up of on-line servers;
Consumers / end-users or business paying for Today ATM interface is an integral part of bank’s
information on products / services; Information communications and market strategy.
services for commercial / govy./pvt. For goods / ATM Network
services; Value-added information providing etc.;
Components of the information super I-way
infrastructure
Network access equipment : consumer / business
premises equipments
Local on ramps : Telecom based infrastructure,
cable TV based infrastructure , wireless
infrastructure, commercial on-line infrastructure
Global Information distribution – N/W : Backbone ENTERTAINMENT:-Movies On Demand, Video
communications & satellite N/W Cataloging, Interactive Ads, Multi-User Games,
Online-Discussion
FINANCIAL SERVICES:-Home Banking,
Financial Services, Financial News
ESSENTIAL SERVICES:- Home shopping,
electronic catalogs, Telemedicine, remote
diagnostics
EDUCATION AND TRAINING:- Interactive
education, multi-user games, Video conferencing
III. Networks Making Up The Internet on-line databases
Business internet provides accepted TCP/IP as the
standard protocol on their own Networks thus,
allowing smooth linkage with the Academic
Internet.
DOMAIN SERVICES / WEB SERVICE
PROTOCOLS
- Client Browser

S. Sridhar* et al.
3.2 Checking – Clearing Process
3.3 Advanced Services And Home Banking Mercantile Model
3.4 Order Management Cycle In E-Commerce
IV. E-COMMERCE MODELS
V. MARKETING STRATEGY -
TARGETED AUDIENCE
Enable Technology– Information servers, client
browsers bulletin boards, software agents
Authors of marketing materials - companies and
consumers

S. Sridhar* et al.
Expected outcome from successful implementation

– Data for analysis, customer relationships
Information based marketing : marketing
research and customer prospecting; marketing
presence; product or services bundling; pricing and
priority; target and micro marketing; advertising
on internet; online advertising ;bill board and or
www model ( without active search)
Interactive marketing process on Internet: Step
1: segment to identify potential customers; Step 2:
Create promotional/ advertising / educational
material; (www- page with multimedia effects);
Step 3: Put the material on customers computer
screen; Push – based marketing - user groups,
email; Pull – based marketing - www pages;
Step 4: Interacting with customers Dialogue with
customer questions/ Answers; Step 5: Leaning
from customers Incorporating feed back Identify
new markets; Step 6: On-line customer service
Market Research: Data Collection; Data
organization; Data Analysis and sense making
5.3 Infrastructure - On-Line Credit Card
5.1 Real World Payment Systems
Processing
1985 – Electronic Data Interchange ( EDI)
Regional electronic fund transfer ( EFT) networks;
extensively used in bank to bank payment systems
Credit card Association; Equipment vendors; Data
1994 – Digital cash trials by Digicash of Holland processors; Software developers; Bill payment
conducted online companies; Telecommunication providers
1995 – Mondex electronic currency trials begin in Risks and Electronic payment system: Fraud or
Swindon, England mistake; Privacy issues; Credit Risk
EFT – ( Electronics Fund Transfer) 5.4 Digital Payment System
Banking and Financial systems Cyber Cash Uses digital payment mechanism;
Uses modern cryptographic technologies; Includes
Examples : bank to bank transfer; auto Teller
public and private key encryption; Uses digital
machines; home banking
signature; Implemented thro’ special client and
Retailing payments :Examples: Credit cards server software; Installing and configuring a
merchant’s ‘WWW SERVER’ to accept cyber
Online electronic commerce payments: Examples:
cash payments is more complicated.
Digi cash; Net cheque; Smart cards /
“First Virtual “
debit cards
Using different assumptions about the state of
5.2 Digital Token-Based Electronic Payment information over the internet; Offers a method of
System buying and selling information products over the
Electronic token 3 types : Cash or real time, Debit internet; First Virtual allows information
or prepaid, Credit or post paid merchants the opportunity to offer their
information for a fair price; First Virtual is for
E-Cash: Means a new concept of on-line payment buying and selling information only; It is not to be
system used for selling products or services; It can be used
Properties of E-cash : Monetary value, for subscriptions, membership and charitable
interoperatibility, retrievability, security contribution; First Virtual is not using encryption
or digital signatures; First Virtual payment system
can be implemented by sellers or www servers, on
file transfer (ftp) servers and even in e-mail. First
Virtual Internet payment system : Fundamental
Assumption :Electronic information merchants can
produce as many or as few copies of any
information; Information buyers, like buyers of

S. Sridhar* et al.
any other product need some way to examine VI. NETWORK SECURITY &
products before they buy; Buying and selling FIREWALLS
should be simple and have as low as entry cost in
Two Broad Types : Client –Server Security, Data
time, money and effort as possible. Opening a
and Transaction Security
first virtual A/c : Contain a Format: Full Name,
e-mail, ph#, address, postal code , state etc.. First Client –Server Security uses Various
Information Process : Customer attempts to Authorization; Only Valid users / programs have
download information; Merchant has the option to access to information like databases; Properly
verify the A/c.; Offered information will be sent to authenticated users are allowed access; Includes
buyer directly form merchants server; Merchants Password protection , encrypted smart cards,
server sends e-mail detailing buyer & Seller ID, biometrics & Firewalls.
time purchased & price; First virtual sends e-mail
Data & transmission Security ensures Privacy;
to customer whether he/she wants to pay for this
Ensures confidentiality in Electronic messages /
item; If ‘Yes’ some attention (similar to e-mail A/c
Data Pkts; Authentication of remote users of on-
opening time some virtual agreement taken); Then
confirm transaction. line payment; Data encryption using
Cryptographic methods as preventive measures
5.5 Cyber Cash
To process credit card transaction, one must
establish merchant Account with a bank offering
cyber cash :Cyber cash client software is available
from several sources including cyber cash’s
website; When customer completes a purchase,
click cyber cash PAY button, then merchant
receives information about this customer’s order;
The encrypted data includes customer’s payment
information; Merchant’s cyber cash forwards the
encrypted message to cyber cash; Once cyber cash
receives the encrypted payment message, then
cyber cash determines credit card – based or cyber
coin transaction; When cyber cash is credit card
based, then cyber cash forwards the message to
merchant’s designated bank or credit card
processor; Then the acceptance or rejection takes Types of holes in Client-Server Network Security
place in 20 sec.; With cyber coin, electronic wallet : Physical Security holes; Software Security holes;
essentially holds digital money transfer is US$20 Inconsistent usage holes. Physical Security holes:
increments; Cyber coin money is placed into A/C Examples:Public workstation so that any hacker
at cyber cash and during transaction, money is can temper the first data; On the Network , guess
pulled from wallet and sent to merchant’s cyber passwords. Software Security holes: Badly written
coin wallet; The Cyber cash merchant server must programs like “send mail” hole during 1988;
be properly setup before any cyber cash Recently in IBM CRS – 6000 workstations, a
transactions; Tests are to be conducted before “root” shell with highest level of access was
accepting cyber cash possible & could be used to delete the entire file
system. Inconsistent usage holes: When system
Running First Time S/W For Cyber Cash administrator assembles a combination of
New Wallet Screen; Summary Screen; Key Hardware & software such that seriously flawed
generation screen; New Wallet Confirmation; from security point of view: This is common when
Back up screen; Add credit card screen; Name software is more complex. Trust-based Security:
credit card screen; Credit card billing information Trust everyone & do nothing extra far protection.
screen; Credit card number entry screen; Credit Security Through obscurity (STO); Any Network
card wizard screen 1; Credit card wizard screen 2; is secured so far as nobody outside its management
Credit card wizard screen 3; Credit card wizard group is allowed to find out anything about its
screen 4; Cyber cash client application operational details. This is quite successful in
administration panel; Cyber cash client application system like IBM MVS or DEC VAX. Password
– transaction log; Cyber cash payment request Schemes:- First level barrier to accidental
summary; Transaction authorization notification intrusion. Biometric System: Most secure level of
screen authorization involving some unique aspect of a
person’s body. Past biometric authentication was
based on comparison of finger prints, palm prints

S. Sridhar* et al.
or signature verification. Many biometric devices and is not kept secret; Since only the bonafide
are costly. author of an encryption message has knowledge of
the private key, successful decryption using the
6.1 Threats To Network Security
corresponding public key verifies the identify of
Security threat that is emerging in Electronic the author and ensures message integrity; Public
Commerce world is mobile code (Software Agent) keys can be maintained in some central repository
which resembles like traditional virus threat ;It is and retrieved to decode or encode information; No
executable program with ability to move from one can figure out the private key from the
machine to machine; Invoke itself without external corresponding public key; Further public key
influence; These threats of 2 kinds: Threat to local cryptography can be used for sender authentication
computing environment from mobile software; known as digital signatures
Access control and threats to servers including
6.4 Secured Electronic Transmission
denial of service, packet replay and packet
modification It Involves Data Security, Message Security,
Message confidentiality, Message and system
6.2 Software Agents And Malicious Code Threat
integrity, Message sender authentication /
These threats arise from malicious data or code, identification, Encryption as basis for Data and
refers to viruses, worms, Trojan horses, logic message security, Data Encryption standard
bombs and other deviant Software programs. (DES), Public key cryptography. Network Security
Virus: A Code segment then replicates by Solution involves Security and Web, Categories of
attaching copies of itself to existing EXE files. The internet Data and transaction, WWW – Based
new copy of virus is executed when user executes security schemes, Basic authentication features,
the host program. Trojan Horse : A program that Secure Sockets Layer (SSL), Secure Hypertext
performs a desired task but also includes Transfer Protocol (S-HTTP), Security and Web : It
unexpected and undesirable function. When is a high profile problem; Day by day # of
editing program for a multi-user systems, could applications forwards commerce; Many Client –
lead to deleting some user’s files too. Worm: A Server authentication need Server authentication,
self-replicating program that is self-contained and Privacy using encryption, Data integrity ;
does not require a host program. Worms Categories of internet data & Transaction : Several
commonly utilize network services to propagate to categories of data must be encrypted; Public data
other host systems . Threats To Servers: These have no security restriction; Copyright data have
threats consist of Unauthorized modification of content that is copyrighted but not secret;
server data; Modification of incoming data pkts.; Confidential data is secret; Secret data’s existence
Compromise of a server system by exploiting bugs is secret. WWW-Based Security Schemes : Secure
in server software; Compared to stand-alone HTTP (S-HTTP) is a revision of HTTP , enabling
systems, network servers are much more the incorporation of various cryptographic
susceptible to attacks. Example: Hackers have message formats, most of security take place at the
potential access to a large # of systems. This lead protocol level; Security Socket Layer (SSL) uses
to security holes; Hackers can use popular UNIX RSA security to wrap security information around
programs like Finger, rsh, to discover A/C name, TCP /IP based protocols.
try to guess simple password etc and then have
6.5 Web Security Layers
illegal entry; Hackers can trap user names and
unencrypted password sent over internet; Hackers
can configure a system to masquerade as another
system, thus gaining unauthorized access; Servers
are especially vulnerable to service over loading
by writing a small loop, then sends requests
continuously for a particular file; Message over
loading occurs when somebody sends a very large
file, every few minutes
6.3 Public Key Cryptography
Firewall – is the barrier between the corporate
More powerful form of cryptography that involves Network and the outside world (untrusted
the use of public keys ; It involves a pair of keys, a network). It is a method of placing a device, a
private key and a public key associated with each computer or a router between the network and the
other; Information encrypted by private key can be internet. It is to control and monitor all traffic
decrypted only using the corresponding public key; between the outside world and the local network.
The private key used to encrypt transmitted Typically the device allows insiders to have full
information by the user is kept secret; The public access to service on the outside world while
key is used to decrypt information at the receiver granting access from the outside only selectively,

S. Sridhar* et al.
based on log on name, password, IP address or 7.1 EDI: Legal, Security And Privacy Issues
other identifiers .
Under US contract law, there are three modes of
6.6 Firewall – Secured Internet Connection communication:Instantaneous:IF the parties use
face to face communication like telephone, an
offer or acceptance is deemed communicated and
operable when spoken; Delayed (USPS) (US
posted service)The mailbox rule provides that an
acceptance communicated via USPS mail is
effectively communicated when dispatched or
physically deposited in a USPS mailbox ;Delay
(Non USPS)Offers an acceptance transmitted
(other then through USPS mail) via telegram,
mailgram and probably electronic managing
system are deemed communicated and operable
upon receipt. Couriers fell within this category.
6.7 Secure Firewall with IP packet Screening
The legal disparity between USPS and non – USPS
router
service requires re-examination as the differences
no longer there. Messaging systems combine both
instantaneous and delayed communication. A
message delay is a function of specific application,
message routing, Networks traversed, system
configuration and other technical factors. So who
assumes liability? If US mail or an overnight
express does not deliver a contract to the right
addresses, then it can be held responsible for any
business loss caused by the error. In the case of
EDI, court has NOT decided yet. The US
6.8 Proxy Application Servers government will support the legal authority of
digital signature will meet the requirements of
legally binding signatures for most purposes. If a
contract is signed with digital signature one can
early verity that no one byte is altered. Thus, legal
consideration of digital notarizing and binding
strength of EDI is a topic deserving of prompt,
quantified and intense attention.
7.2 EDI , E-Commerce Standard
Two major EDI standards are ANSI : American
National Standards Institute X.12 committee;
United Nations EDI for Administrations,
VII. EDI – APPLICATIONS commerce and trade ( EDIFACT) standards for
Electronic Data Interchange (EDI) applications are international usage. ANSI X.12 : Accredited
as follows:-Railway rolling stock monitoring; Ship Standard committee in 1979 to R & D Standard
“baby plans” (Cargo plans for container For business documents; X.12 committed set
standard for EDI related business transactions like
ships);Ship berthing / scheduling notices;
order placement and processing, shipping and
Notification of dangerous goods on ships / trains /
planes; Exchange of CAD / CAM documents; receiving , invoicing, payments, cash applications
Tender tracking; Lodgment of law court processing for products and services; Sets
documents; Notification of lodgment of archives generally map a traditional paper document to
documents; Ship manifests / airway bills / electronic format to move over telecommunication
N/W; Each transaction format includes many data
Customer clearances; Airline Tkts settlements;
segments. EDIFACT : Developed by united
International cross border trade; Electronic fund
transfer; Health care EDI for insurance claims; Nations; Similar to ANSI X.12 ; Based on
Manufacturing and retail procurement; TRADECOMS developed by UK; Department of
International trade and EDI in this context, trade customs and excise with assistance of SITPRO (
efficiency which allows faster, simpler, broader British simplifications of Trade proceedings
board); Further developed by United Nations
and less costly using EDI.
economic commission for Europe; Widely
accepted by EDI std.; Today EDIFACT and ANSI
are working towards compatibility.

S. Sridhar* et al.
VIII. INTERNAL INFORMATION Shrinking middle management function; Changing

SYSTEM customer demands and preferences; Pressure to
reduce expenses
Information begins with corporate data; Corporate
data deals with building blocks; Building blocks Buzzwords For Efficient Management : Total
form the information and knowledge that underlie quantity management; Business process
the operations of all enterprises regardless of improvement or business process re-engineering;
industry, size or county; Corporate information is Confusion on re-engineering with downsizing;
created, managed and stored in many forms and Both functions are different ; Re-engineering
places; Its value is contingent on the ability of results in more work, productivity improves or
workers to access, manipulate, change and profits increases; Down sizing (or corporation
distribute it. How information systems benefit their restructuring) reduces the work force or personnel
companies? The following systems are well- cost reduction; Re-engineering often uses
known to build competitive advantage and enhance automation to reduce work load to increase
effectiveness : SABRE – American’s Airline’s quantity and efficiency; Re-engineering may not
reservation system; COSMOS – Federal’s Express lead to downsizing.
customer system tracks every package in the
Global Markets : ‘International’ typically means
network through hand-held computers; American
that a company has an office in foreign country;
Hospital system’s ASAP order entry and inventory
Global goes beyond that to autonomy and
control system; ECOWOMOST – the pharma
decentralization of operations; Global markets are
system by placing terminals in drug stores etc.;
not new to MNC which by definition does a
USAA – United Service Automobile Association
substantial portion of its business in countries
used its automated insurance environment. In all
other than its home country; How must businesses
these cases a proprietary infrastructure was put in
adjust their administration and information
place first and then the organization went beyond
management systems to operate successfully
the technology to view the management of
through out the world? What is the role of
‘infrastructure’ itself as an asset to gain
information super highway in the global market
competitive advantage.
place?
8.1 Information Architecture
8.3 Vertical Organization
This enables cross - functional systems and better
The vertical approach to corporate management
information utilization ; Cross – Functional system
poses two problems to smooth operations.; First it
deals with Integrating the enterprise with
creates boundaries that discourage employees in
information flowing from one business to another;
different departments from interacting with others;
Cross functional integration has shifted from
Second, department goals are set such that friction
monolithic mainframes toward client – server
is caused many departments; For example, goals
system connecting corporation Databases, workers
are set to maximize sales only and pay little
and tasks via network information; We can see this
attention to account collection or service delivery;
concept in supply chain management.
If service or quality of products are not good, it
8.2 Information Not Data does not matter for sales, since it meets its goal of
target sales; A lot of gaps (Communication) are
The focus today is based on corporation
formed between employees; Finally, three key
information. While the information system and
ingredients, namely, product, process and customer
applications may have to change periodically, the
are missing; A major drawback is its failure in
information has a longevity of 10 – 25 years :
understanding and co-operation between
Companies are attempting on information
departments.
architects rather than system builders; Information
architecture is based on the wide spread adoption 8.4 Horizontal Organization
of standards and protocols in Hardware, software
Principal goal is to facilitate the smooth transition
& telecommunication; Technology is changing
of intermediate products and services through its
faster; Price – performance ratio for computers
various functions to customer; The object is proper
have improved exponentially. For Example in 2
co-ordination, improving flow management, work
years, Intel’s 486 evolved from 25 MHz, to 33
quality and increasing value for customers; Even
MHz, to 66 MHz etc.; In short we are at the major
through the objects are good on paper, they are
shift; The way we design the Information systems
vague and elusive during implementation, since
is the revolutionary change in business
every group has difference goals.
environment.
Macro Forces & Internal Commerce : Macro
Forces affecting Organization are as follows: An
increasing competitive global market – place;

S. Sridhar* et al.
IX. ELECTRONIC BROKERAGES IN 10.2 Customization And Internal Commerce

INTERNAL MARKETS
Customization qualities areTechnology embodies
In Chicago and San Francisco, a company adaptability, Programmability, Flexibility and
“Peapod” is delivering groceries / liquor / Others. Customer driven customization is
prescriptions etc to more than 10,000 households. becoming important because of too much of
Using a PC, shoppers can browse and types in an choice. Work all markets are well suited for the
order. Then peapod employee takes a wagon to application of customization . Most of the written
pick up supplies and delivers them in 3 hours. material and thinking about customization has
neglected technology. Customization is also
becoming in service industries, like banks, retail
outlets, hospitals etc.
X. WORK – FLOW AUTOMATION

It offers the following :- More timely; Cost- XI. TIMELINE FOR THE
effective; Interpreted ways to make decision; Work DEVELOPMENT
flow portrays the movement of a business process
and its associated tasks among workers and During 1971 - 80
operation required from initial stage to completion;  1971 Or 1972: The Arpanet Is Used To
Typically work flows are decomposed into steps or Arrange A Cannabis Sale Between Students
tasks with which should be done first, second and At The Stanford Artificial Intelligence
so on; Another way of looking at workflow is to Laboratory And The Massachusetts Institute
find out the amount of cross functional activity; Of Technology, Later Described As "The
Clearly it is time that companies must adopt an Seminal Act Of E-Commerce" In John
integrated process view of all business elements. Markoff's Book What The Dormouse Said.
Organization integration is complex with 3 steps:
Improve existing processes by using technology  1979: Michael Aldrich Demonstrates The
where appropriate; Integrating across the business First Online Shopping System.
functions with information needs for each process; During 1981 - 90
Integrity business function, application programs
and databases across departments and groups; The  1981: Thomson Holidays UK is the first
ultimate goal is to ensure that all departments and business-to-business online shopping system
end users have access to organization-wide data to be installed.
rather than relying on proprietary data.  1982: Minitel was introduced nationwide in
10.1 Work-Flow Co-Ordination France by France Télécom and used for
online ordering.
The Key element of a market-driven business is
the co-ordination of tasks and other resources  1983: California State Assembly holds first
;Simplest work-flow co-ordination tools to hearing on "electronic commerce" in
understand and implement are electronic forms Volcano, California. Testifying are CPUC,
like lotus notes; These packages offer a network MCI Mail, Prodigy, CompuServe, Volcano
based, automated alternative to paper documents; Telephone, and Pacific Telesis. (Not
As the number of parties in the workflow permitted to testify is Quantum Technology,
increases, good co-ordination is necessary; To later to become AOL.)
have butter work flow co-ordination companies are
 1984: Gateshead SIS/Tesco is first B2C
using software agents; A good work flow package
online shopping system and Mrs Snowball,
lets users specify acceptance criteria for moving
72, is the first online home shopper
work from one stage to the next; It can also
coordinate existing software and track processes to  1984: In April 1984, CompuServe launches
make sure the work gets done by right people. the Electronic Mall in the USA and Canada.

S. Sridhar* et al.
It is the first comprehensive electronic Implementation Of Electronic Commerce

commerce service. Started By A Group Of Sysops In Australia
And Replicated To Global Partner Sites.
 1989: In May 1989, Sequoia Data Corp.
Introduced Compumarket The first internet  1998: Electronic Postal Stamps Can Be
based system for e-commerce. Sellers and Purchased And Downloaded For Printing
buyers could post items for sale and buyers From The Web.
could search the database and make
purchases with a credit card.  1999: Alibaba Group Is Established In China.
Business.Com Sold For Us $7.5 Million To
 1990: Tim Berners-Lee Writes The First Web Ecompanies, Which Was Purchased In 1997
Browser, Worldwideweb, Using A Next For Us $149,000. The Peer-To-Peer
Computer. Filesharing Software Napster Launches. Atg
Stores Launches To Sell Decorative Items
During 1991 - 2000
For The Home Online.
 1992: Book Stacks Unlimited In Cleveland
 2000: Complete Idiot's Guide To E-
Opens A Commercial Sales Website
Commerce Released On Amazon
(Www.Books.Com) Selling Books Online
With Credit Card Processing.  2000: The Dot-Com Bust.
 1993: Paget Press Releases Edition No. 3 Of During 2001 - 2010
The First App Store, The Electronic
Appwrapper  2001: Alibaba.Com Achieved Profitability In
December 2001.
 1994: Netscape Releases The Navigator
Browser In October Under The Code Name  2002: Ebay Acquires Paypal For $1.5 Billion.
Mozilla. Netscape 1.0 Is Introduced In Late Niche Retail Companies Wayfair And
1994 With Ssl Encryption That Made Netshops Are Founded With The Concept Of
Transactions Secure. Selling Products Through Several Targeted
Domains, Rather Than A Central Portal.
 1994: Ipswitch Imail Server Becomes The
First Software Available Online For Sale And  2003: Amazon.Com Posts First Yearly Profit.
Immediate Download Via A Partnership  2003: Bossgoo B2b Marketplace Established
Between Ipswitch, Inc. And Openmarket. In China.
 1994: "Ten Summoner's Tales" By Sting  2004: Dhgate.Com, China's First Online B2b
Becomes The First Secure Online Purchase Transaction Platform, Is Established, Forcing
Through Netmarket. Other B2b Sites To Move Away From The
 1995: The Us National Science Foundation "Yellow Pages" Model.
Lifts Its Former Strict Prohibition Of  2007: Business.Com Acquired By R.H.
Commercial Enterprise On The Internet. Donnelley For $345 Million.
 1995: Thursday 27 April 1995, The Purchase  2009: Zappos.Com Acquired By
Of A Book By Paul Stanfield, Product Amazon.Com For $928 Million. Retail
Manager For Compuserve Uk, From W H Convergence, Operator Of Private Sale
Smith's Shop Within Compuserve's Uk Website Ruelala.Com, Acquired By Gsi
Shopping Centre Is The Uk's First National Commerce For $180 Million, Plus Up To
Online Shopping Service Secure Transaction. $170 Million In Earn-Out Payments Based
 1995: Jeff Bezos Launches Amazon.Com On Performance Through 2012.
And The First Commercial-Free 24-Hour,  2010: Groupon Reportedly Rejects A $6
Internet-Only Radio Stations, Radio Hk And Billion Offer From Google. Instead, The
Netradio Start Broadcasting. Ebay Is Group Buying Websites Went Ahead With
Founded By Computer Programmer Pierre An Ipo On 4 November 2011. It Was The
Omidyar As Auctionweb. Largest Ipo Since Google.
 1996: Indiamart B2b Marketplace During 2011 - 2015
Established In India.
 2012: Zalora Group Was Founded And
 1996: Ecplaza B2b Marketplace Established Started Operations Around Asia.
In Korea.
 2014: Overstock.Com Processes Over $1
 1996: The Use Of Excalibur Bbs With Million In Bitcoin Sales. India's E-Commerce
Replicated "Storefronts" Was An Early Industry Is Estimated To Have Grown More

S. Sridhar* et al.
Than 30% From 2012 To $12.6 Billion In deal with businesses online, and offers specific
2013. Us E-Commerce And Online Retail advice on what happens if things go wrong.
Sales Projected To Reach $294 Billion, An
12.3 In The United Kingdom
Increase Of 12 Percent Over 2013 And 9%
Of All Retail Sales. Alibaba Group Has The The Financial Services Authority (FSA) was
Largest Initial Public Offering Ever, Worth formerly the regulating authority for most aspects
$25 Billion. of the EU's Payment Services Directive (PSD),
until its replacement in 2013 by the Prudential
 2015: Amazon.Com Accounts For More
Regulation Authority and the Financial Conduct
Than Half Of All E-Commerce Growth,
Authority. The UK implemented the PSD through
Selling Almost 500 Million Sku's In The Us.
the Payment Services Regulations 2009 (PSRs),
XII. GOVERNMENTAL REGULATION which came into effect on 1 November 2009. The
PSR affects firms providing payment services and
12.1 In The United States their customers. These firms include banks, non-
Certain electronic commerce activities are bank credit card issuers and non-bank merchant
regulated by the Federal Trade Commission acquirers, e-money issuers, etc. The PSRs created
(FTC). These activities include but not limit to the a new class of regulated firms known as payment
use of commercial e-mails, online advertising and institutions (PIs), who are subject to prudential
consumer privacy. The CAN-SPAM Act of 2003 requirements. Article 87 of the PSD requires the
establishes national standards for direct marketing European Commission to report on the
over e-mail. The Federal Trade Commission Act implementation and impact of the PSD by 1
regulates all forms of advertising, including online November 2012.
advertising, and states that advertising must be
12.4 In India
truthful and non-deceptive. Using its authority
under Section 5 of the FTC Act, which prohibits The Information Technology Act 2000 Governs
unfair or deceptive practices, the FTC has brought The Basic Applicability Of E-Commerce.
a number of cases to enforce the promises in
12.5 In China
corporate privacy statements, including promises
about the security of consumers' personal Telecommunications Regulations of the People's
information. As a result, any corporate privacy Republic of China (promulgated on 25 September
policy related to e-commerce activity may be 2000), stipulated the Ministry of Industry and
subject to enforcement by the FTC. Information Technology (MIIT) as the government
Internationally there is the International department regulating all telecommunications
Consumer Protection and Enforcement Network related activities, including electronic commerce.
(ICPEN), which was formed in 1991 from an On the same day, The Administrative Measures on
informal network of government customer fair Internet Information Services released, is the first
trade organisations. The purpose was stated as administrative regulation to address profit-
being to find ways of co-operating on tackling generating activities conducted through the
consumer problems connected with cross-border Internet, and lay the foundation for future
transactions in both goods and services, and to regulations governing e-commerce in China. On
help ensure exchanges of information among the 28 August 2004, the eleventh session of the tenth
participants for mutual benefit and understanding. NPC Standing Committee adopted The Electronic
From this came Econsumer.gov, an ICPEN Signature Law, which regulates data message,
initiative since April 2001. It is a portal to report electronic signature authentication and legal
complaints about online and related transactions liability issues. It is considered the first law in
with foreign companies. There is also Asia Pacific China's e-commerce legislation. It was a milestone
Economic Cooperation (APEC) was established in the course of improving China's electronic
in 1989 with the vision of achieving stability, commerce legislation, and also marks the entering
security and prosperity for the region through free of China's rapid development stage for electronic
and open trade and investment. APEC has an commerce legislation.
Electronic Commerce Steering Group as well as
XIII. E-COMMERCE IMPACT
working on common privacy regulations
throughout the APEC region. 13.1 Impact On Markets And Retailers
12.2 In Australia Economists have theorized that e-commerce ought
to lead to intensified price competition, as it
Trade is covered under Australian Treasury
increases consumers' ability to gather information
Guidelines for electronic commerce, and the
about products and prices. Research by four
Australian Competition and Consumer
economists at the University of Chicago has found
Commission regulates and offers advice on how to
that the growth of online shopping has also

S. Sridhar* et al.
affected industry structure in two areas that have addition, e-commerce has a more sophisticated
seen significant growth in e-commerce, bookshops level of impact on supply chains: Firstly, the
and travel agencies. Generally, larger firms are performance gap will be eliminated since
able to use economies of scale and offer lower companies can identify gaps between different
prices. The lone exception to this pattern has been levels of supply chains by electronic means of
the very smallest category of bookseller, shops solutions; Secondly, as a result of e-commerce
with between one and four employees, which emergence, new capabilities such implementing
appear to have withstood the trend. Depending on ERP systems, like SAP ERP, Xero, or
the category, e-commerce may shift the switching Megaventory, have helped companies to manage
costs—procedural, relational, and financial— operations with customers and suppliers. Yet these
experienced by customers. Individual or business new capabilities are still not fully exploited.
involved in e-commerce whether buyers or sellers Thirdly, technology companies would keep
rely on Internet-based technology in order to investing on new e-commerce software solutions
accomplish their transactions. e-commerce is as they are expecting investment return. Fourthly,
recognized for its ability to allow business to e-commerce would help to solve many aspects of
communicate and to form transaction anytime and issues that companies may feel difficult to cope
anyplace. Whether an individual is in the US or with, such as political barriers or cross-country
overseas, business can be conducted through the changes. Finally, e-commerce provides companies
internet. The power of e-commerce allows a more efficient and effective way to collaborate
geophysical barriers to disappear, making all with each other within the supply chain.
consumers and businesses on earth potential
13.3 Impact On Employment
customers and suppliers. Thus, switching barriers
and switching costs may shift. eBay is a good E-commerce helps create new job opportunities
example of e-commerce business individuals and due to information related services, software app
businesses are able to post their items and sell and digital products. At same time, it also causes
them around the Globe. In e-commerce activities, job losses as it replaces traditional shopping and do
supply chain and logistics are two most crucial not need amount of in-store staff. Accompanied
factors need to be considered. Typically, cross- with the e-commerce development, it requires
border logistics need about few weeks time round. broader range of skills in digit, technology and
Based on this low efficiency of the supply chain information base. The employees should be
service, customer satisfaction will be greatly capable at dealing with large number of customers’
reduced. Some researcher stated that combining e- demands and order process. Therefore, it increases
commerce competence and IT setup could well the demand of employees with high skills and
enhance company's overall business worth. Other specialized expertises as well as increases the
researcher stated that e-commerce need to consider wages for this group of people. In contrast, people
the establishment of warehouse centers in foreign who with poor technical skills cannot enjoy the
countries, to create high efficiency of the logistics wages welfare. On the other hand, because e-
system, not only improve customers' satisfaction, commerce requires sufficient stocks that could be
but also can improve customers' loyalty. delivered to customers in time, the warehouse
become an important element. Warehouse needs
13.2 Impact On Supply Chain Management
more staff to manage, supervise and organize, thus
For a long time, companies had been troubled by the condition of warehouse environment will be
the gap between the benefits which supply chain concerned by employees.
technology has and the solutions to deliver those
13.4 Impact On Customers
benefits. However, the emergence of e-commerce
has provided a more practical and effective way of With the existence of e-commerce, it brings
delivering the benefits of the new supply chain convenience for customers as they do not have to
technologies. E-commerce has the capability to leave home and only need to browse website
integrate all inter-company and intra-company online, especially for buying the products which
functions, meaning that the three flows (physical are not sold in nearby shops. It could help
flow, financial flow and information flow) of the customers buy wider range of products and save
supply chain could be also affected by e- customers’ time. Then, the online shopping often
commerce. The affections on physical flows provides sales promotion or discounts code, thus it
improved the way of product and inventory is more price effective for customers. Moreover, e-
movement level for companies. For the commerce provides products’ detailed information;
information flows, e-commerce optimised the even the in-store staff cannot offer such detailed
capacity of information processing than companies explanation. Customers can also review and track
used to have, and for the financial flows, e- the order history online. However, e-commerce is
commerce allows companies to have more lack of human interaction for customers, especially
efficient payment and settlement solutions. In who prefer face-to-face consumption. When the

S. Sridhar* et al.
customer regrets to purchase the product, it extra convenience for online shoppers. Online
involves returning goods and refunding process. merchandise is searchable, which makes it more
This process is inconvenient as customers need to accessible to shoppers. Many online retailers offer
pack and post the goods. If the products are a review mechanism, which helps shoppers decide
expensive, large or fragile, it refers to safety on the product to purchase. This is another
issues. convenience and a satisfaction improvement
factor.
13.5 Social Impact
XIV. CONCLUSIONS
Along with the e-commerce and its unique charm
that has appeared gradually, virtual enterprise, e-commerce is not a new industry, technically
virtual bank, network marketing, online shopping, speaking, but it is creating a new economic model.
payment and advertising, such this new vocabulary Most people agree that e-commerce will positively
which is unheard-of and now has become as impact economic society in the future, but in its
familiar to people. This reflects that the e- early stages its impacts are difficult to gauge.
commerce has huge impact on the economy and Some have noted that e-commerce is a sort of
society from the other side. For instance, B2B is a incorporeal revolution. e-commerce has numerous
rapidly growing business in the world that leads to social benefits: one, the cost of running an e-
lower cost and then improves the economic commerce business is very low when compared
efficiency and also bring along the growth of with running a physical store; two, there is no rent
employment. e-commerce has changed the relative to pay on expensive premises; and three, business
importance of time, but as the pillars of indicator processes are simplified and less man-hours are
of the country's economic state that the importance required to run a typical business smoothly. In the
of time should not be ignored. e-commerce offers area of law, education, culture and also policy, e-
the consumer or enterprise various information commerce will continue to rise in impact. e-
they need, making information into total commerce will truly take human beings into the
transparency, and enterprises are no longer is able information society.
to use the mode of space or advertisement to raise
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3.2 Checking – Clearing Process

3.3 Advanced Services And Home Banking Mercantile Model

3.4 Order Management Cycle In E-Commerce

IV. E-COMMERCE MODELS

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Expected outcome from successful implementation

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VIII. INTERNAL INFORMATION Shrinking middle management function; Changing

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IX. ELECTRONIC BROKERAGES IN 10.2 Customization And Internal Commerce

X. WORK – FLOW AUTOMATION

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It is the first comprehensive electronic Implementation Of Electronic Commerce

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[44]. Child, J. (1969). The business enterprise in consumers". Governor Technology.

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