DEPARTMENT OF BUSINESS AND MANAGEMENT

ORIENTAL UNIVERSITY, INDORE

PROJECT REPORT
Course: Masters of Business Administration
Semester: 1st Semester
Code: FT- 104C
Subject: IT & E-Business Fundamental
Academic Session: July 2017 – December 2017

Submitted To: Submitted By:

Mr. Atul Nandwal Pooja Kashyap
 Index

S.no Topic Page no Remarks

1 Explain complete procedure for online payment

2 Explain all input and output devices with latest available

specification.

3 What is E-Business explain with various models.

4 Explain online marketing concept with example.

5 Illustrate EDI with suitable example.

 Certificate

I hereby certify that the work which is being submitted in this project titled “IT and E-Business

Fundamental”, in partial fulfilment of the requirement for the degree of MBA is a work carried

out by Pooja Kashyap submitted in Oriental University, Indore is an authentic record of my own

work carried out under the supervision of Mr. Atul Nandwal.

Signature of Mentor Signature of HOD Signature of Principal

Name and Signature of the student

Name: signature
1. Pooja Kashyap
 Acknowledgement

I express my sincere thanks to my project guide of prof. Atul Nandwal for providing me this

pportunity to carry out this project and Oriental University, Indore for providing me the correct

platform. The constant guidance and encouragement received from our mentor has been of great

elp in carrying out the project work. We would also like to express a deep sense of gratitude and

thanks profusely to help rendered by the faculty, professors and teachers at our institute for

providing us adequate resources to work on our project.

 Que-1: Explain Complete procedure for Online Payment system?

There are a series of steps involved with processing electronic payments such as credit and debit
cards:

Step 1: User Initiates Online Payment

The user goes online to pay rent, HOA dues, vacation home rental charges, inn charges or a church
donation. After selecting to pay by credit or debit card, the user passes on information such as
name, credit or debit card details, and billing address, and then submits payment.

Step 2: User to Payment Processor

User sends the transaction details to our payment processor using a dedicated link that’s monitored
x 7 x 365 to ensure that processing is not interrupted.

Step 3: Payment Processor to Card Networks to Card Issuing Bank

Payment details are validated by the payment processor by sending them through the credit or
debit card networks (Visa, MasterCard, American Express, Discover), which forward them to the
card-issuing bank to be authorized.

Step 4: Card Issuing Bank

The card-issuing bank approves/denies the transaction based on card status and whether the
transaction is within the cardholder’s credit limit or not.

Step 5: Payment Processor to Card Networks to User

If payment gets approved, the card issuer charges the user and forwards the funds to the card
networks less any fees to cover costs such as credit risk and rewards. The card networks then relay
the transaction-approved status back to the payment processor, who notifies User and sends on the
funds less applicable fees.

Step 6: Payment Interface to User

The user knows if the transaction is approved or denied through the online payment interface. If
payment is denied, User’s payment gateway notifies the site or app and because the card-issuing
nk did not authorize the transaction, the process comes to a halt.
Step 7: User to Merchant

At this point, User transfers funds from its bank account to the merchant’s account. Funds are
usually received within 1-2 business days. A receipt is then emailed to the user and payment receipt
notifications go to the merchant. Additionally, detailed User merchant reports are updated in real-
time, including the Transaction Activity Report, Batch Reconciliation Report and Transaction
Summary Report.
 Que-2: Explain all input and output devices with latest available
specification?

The computer will be of no use unless it is able to communicate with the outside
world. Input/output devices are required for users to communicate with the computer.
In simple terms, input devices bring information INTO the computer and output
devices bring information OUT of a computer system. These input/output devices are
also known as peripherals since they surround the CPU and memory of a computer
system.
Some commonly used Input/output devices are listed in table below.

Input Devices Output Devices

Keyboard Monitor

Mouse LCD

Joystick Printer

Scanner Plotter

Light Pen

ouch Screen

Input Devices
(a) Keyboard
It is a text base input device that allows the user to input alphabets, numbers and
ther characters. It consists of a set of keys mounted on a board.

Alphanumeric Keypad
It consists of keys for English alphabets, 0 to 9 numbers, and special characters
like + / * ( ) etc.

Function Keys
There are twelve function keys labeled F1, F2, F3… F12. The functions assigned to these
eys differ from one software package to another. These keys are also user programmable
keys.
Special-function Keys
Thes keys have special functions assigned to them and can be used only for those specific
purposes. Functions of some of the important keys are defined below.

Enter
It is similar to the ‘return’ key of the typewriter and is used to execute a command or program.

Spacebar
It is used to enter a space at the current cursor location.

Backspace
This key is used to move the cursor one position to the left and also delete the character in
hat position.

Delete
It is used to delete the character at the cursor position.

Insert
Insert key is used to toggle between insert and overwrite mode during data entry.

ShiftThis key is used to type capital letters when pressed along with an alphabet key. Also used to
type the special characters located on the upper-side of a key that has two characters defined on
the same key.

Caps Lock
Cap Lock is used to toggle between the capital lock features. When ‘on’, it locks the
alphanumeric keypad for capital letters input only.

Tab
Tab is used to move the cursor to the next tab position defined in the document. Also, it is
used to insert indentation into a document.
Ctrl
Control key is used in conjunction with other keys to provide additional functionality on
the keyboard.
Alt
Also like the control key, Alt key is always used in combination with other keys to perform specific
task.
Esc
This key is usually used to negate a command. Also used to cancel or abort executing programs.

Numeric Keypad
Numeric keypad is located on the right side of the keyboard and consists of keys having
numbers (0 to 9) and mathematical operators (+ − * /) defined on them. This keypad is
provided to support quick entry for numeric data.

Cursor Movement Keys

These are arrow keys and are used to move the cursor in the direction indicated by the
arrow (up, down, left, right).
(b) Mouse
he mouse is a small device used to point to a particular place on the screen and
select in order to perform one or more actions. It can be used to select menu
commands, size windows, start programs etc.

The most conventional kind of mouse has two buttons on top: the left one being
used most frequently.

Mouse Actions
Left Click: Used to select an item.
Double Click: Used to start a program or open a file.
Right Click: Usually used to display a set of commands.
Drag and Drop: It allows you to select and move an item from one location to
another. To achieve this place the cursor over an item on the screen, click the left
mouse button and while holding the button down move the cursor to where you
want to place the item, and then release it.
c) Joystick
The joystick is a vertical stick which moves the graphic cursor in a direction
he stick is moved. It typically has a button on top that is used to select the
option pointed by the cursor. Joystick is used as an input device primarily
used with video games, training simulators and controlling robots.

(d)Scanner
Scanner is an input device used for direct data entry from the source document
into the computer system. It converts the document image into digital form so that
it can be fed into the computer. Capturing information like this reduces the
possibility of errors typically experienced during large data entry. Hand-held
scanners are commonly seen in big stores to scan codes and price information for
each of the items. They are also termed the bar code readers.

(e) Bar codes

A bar code is a set of lines of different thicknesses that represent a number. Bar
Code Readers are used to input data from bar codes. Most products in shops have
bar codes on them. Bar code readers work by shining a beam of light on the lines
that make up the bar code and detecting the amount of light that is reflected back

(f) Light Pen

It is a pen shaped device used to select objects on a display screen. It is quite like
the mouse (in its functionality) but uses a light pen to move the pointer and select
any object on the screen by pointing to the object.
Users of Computer Aided Design (CAD) applications commonly use the light pens
to directly draw on screen.
(g) Touch Screen
t allows the user to operate/make selections by simply touching the display screen.
Common examples of touch screen include information kiosks, and bank ATMs.

(h)Digital camera
A digital camera can store many more pictures than an ordinary camera. Pictures
taken using a digital camera are stored inside its memory and can be transferred to
a computer by connecting the camera to it. A digital camera takes pictures by
converting the light passing through the lens at the front into a digital image.
(i) The Speech Input Device
The “Microphones - Speech Recognition” is a speech Input device. To operate it
we require using a microphone to talk to the computer. Also we need to add a sound
card to the computer. The Sound card digitizes audio input into 0/1s .A speech
recognition program can process the input and convert it into machine-recognized
commands or input.

II. Output Devices

a) Monitor
Monitor is an output device that resembles the television screen and uses a Cathode
Ray Tube (CRT) to display information. The monitor is associated with a keyboard
for manual input of characters and displays the information as it is keyed in. It also
displays the program or application output. Like the television, monitors are also
available in different sizes.

(b) Liquid Crystal Display (LCD)

LCD was introduced in the 1970s and is now applied to display terminals also. Its
advantages like low energy consumption, smaller and lighter have paved its way
for usage in portable computers (laptops).

(c) Printer
Printers are used to produce paper (commonly known as hardcopy) output. Based on
the technology used, they can be classified as Impact or Non-impact printers.
Impact printers use the typewriting printing mechanism wherein a hammer strikes the
paper through a ribbon in order to produce output. Dot-matrix and Character printers
fall under this category.
Non-impact printers do not touch the paper while printing. They use chemical, heat or
electrical signals to etch the symbols on paper. Inkjet, Deskjet, Laser, Thermal printers
fall under this category of printers.

(d) Plotter
Plotters are used to print graphical output on paper. It interprets computer commands
and makes line drawings on paper using multicolored automated pens. It is capable of
producing graphs, drawings, charts, maps etc.
Computer Aided Engineering (CAE) applications like CAD (Computer Aided Design)
and CAM (Computer Aided Manufacturing) are typical usage areas for plotters.

(e) Audio Output: Sound Cards and Speakers:

The Audio output is the ability of the computer to output sound. Two components are
needed: Sound card – Plays contents of digitized recordings, Speakers – Attached to
sound card.
 Que-3: What is E-Business explain with various model?

E-commerce business models can generally be categorized into the following categories.

• Business - to - Business (B2B)

• Business - to - Consumer (B2C)
• Consumer - to - Consumer (C2C)
• Consumer - to - Business (C2B)
• Business - to - Government (B2G)
• Government - to - Business (G2B)
• Government - to - Citizen (G2C)

Business - to - Business
A website following the B2B business model sells its products to an intermediate buyer who then
ells the product to the final customer. As an example, a wholesaler places an order from a
company's website and after receiving the consignment, sells the endproduct to the final customer
who comes to buy the product at one of its retail outlets.
Business - to - Consumer
website following the B2C business model sells its products directly to a customer. A
customer can view the products shown on the website. The customer can choose a product
and order the same. The website will then send a notification to the business organization
via email and the organization will dispatch the product/goods to the customer.

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

.
Consumer - to - Business
In this model, a consumer approaches a website showing multiple business organizations for a
particular service. The consumer places an estimate of amount he/she wants to spend for a
particular service. For example, the comparison of interest rates of personal loan/car loan
provided by various banks via websites. A business organization who fulfills the consumer's
requirement within the specified budget, approaches the customer and provides its services.

Business - to - Government
B2G model is a variant of B2B model. Such websites are used by governments to trade and
exchange information with various business organizations. Such websites are accredited by the
government and provide a medium to businesses to submit application forms to the government.
Government - to - Business
Governments use B2G model websites to approach business organizations. Such websites support
auctions, tenders, and application submission functionalities.

Government - to - Citizen
Governments use G2C model websites to approach citizen in general. Such websites support
auctions of vehicles, machinery, or any other material. Such website also provides services like
registration for birth, marriage or death certificates. The main objective of G2C websites is to
reduce the average time for fulfilling citizen’s requests for various government services.
 Que-4: Explain online marketing concept with example?

Online marketing is a set of powerful tools and methodologies used for promoting products and
services through the internet. Online marketing includes a wider range of marketing elements than
traditional business marketing due to the extra channels and marketing mechanisms available on
the internet.
Online marketing can deliver benefits such as:

• Growth in potential
• Reduced expenses
• Elegant communications
• Better control
• Improved customer service
• Competitive advantage

Online marketing is also known as internet marketing, web marketing, digital marketing and search
engine marketing (SEM).

The broad online marketing spectrum varies according to business requirements. Effective online
marketing programs leverage consumer data and customer relationship management (CRM)
systems. Online marketing connects organizations with qualified potential customers and takes
business development to a much higher level than traditional marketing.
Online marketing synergistically combines the internet's creative and technical tools, including
design, development, sales and advertising, while focusing on the following primary business
models:

• E-commerce
• Lead-based websites
• Affiliate marketing
• Local search

Online marketing has several advantages, including:

• Low costs: Large audiences are reachable at a fraction of traditional advertising budgets,
allowing businesses to create appealing consumer ads.
• Flexibility and convenience: Consumers may research and purchase products and services
at their leisure.
• Analytics: Efficient statistical results are facilitated without extra costs.
• Multiple options: Advertising tools include pay-per-click advertising, email marketing and
local search integration (like Google Maps).
• Demographic targeting: Consumers can be demographically targeted much more
effectively in an online rather than an offline process.

The main limitation of online marketing is the lack of tangibility, which means that consumers are
unable to try out, or try on items they might wish to purchase. Generous return policies are the
main way to circumvent such buyer apprehension.
Online marketing has outsold traditional advertising in recent years and continues to be a high-
growth industry.
Best Examples of Online Marketing Campaigns

1 – Zappos

Zappos, a leader in online shoe commerce, sets the gold standard for online customer care. In fact,
their CEO wrote the book on it. So it’s no shock that they have a stellar digital strategy.

Not only does Zappos provide a 365-day money back guarantee, but they also have free shipping
both ways as well, should consumers decide to return or exchange products purchased on the site.

As a result, Zappos doesn’t have to work hard to market its online presence – its policies are so
appealing to consumers that shoppers are eager to sing the company’s praises to one another in a
completely organic (and viral) fashion.

Of course, Zappos does still invest heavily in online marketing, and its social media campaigns
shouldn’t be missed! Notice how they focus on what the customer wants and needs, not on what
they want the customer to want or need. This is a key part to any effective digital strategy. Listen
to your audience and plan accordingly.

2 – American Express (AMEX)

Plenty of companies talk a big game about “the communities” they’re creating online and the
inherent value of the “online conversation.” However, very few actually create any community of
value.

Far from being all talk and no game, American Express puts its money where its mouth is by
leveraging the value provided by industry experts on its Open Forumwebsite.

Open Forum is a collaborative website, on which American Express invites guest authors from a
variety of sectors to share their business knowledge and wisdom. The result is a content-rich
mega-site that’s popular with the search engines – all created without American Express needing
to shell out cash to content contributors

3 – Mint

Entering the crowded personal finance niche (or any popular niche) is a daunting task for any new
startup, but the approach that financial tracking tool Mint took proves that it’s possible to stand
out in a crowd through well-executed online marketing strategies.

Although the company was a relative unknown amongst its more popular predecessors, Mint
ommitted to a digital strategy publishing hundreds of high-quality content pieces – from
informative blog posts to viral attention-grabbing infographics (like A Dude’s Guide to Not Going
Broke during Wedding Season) to grow their business.

As a result of Mint’s digital marketing efforts, the tool gained a massive online following before
being sold to Intuit for a whopping $170 million.
4 – Uber

The company started in 2009, but it feels like they’ve always been around. Their service is built
upon a luxury that most of us dream of, but few can afford: a private driver. Tap a few buttons on
the app and in a matter of minutes, a shiny new car arrives at your exact location to take you
anywhere you want to go. The service is so great that the need for expensive marketing is
practically non-existent.

Uber grew almost entirely through word-of-mouth marketing, which is a very high converting
channel. In fact, according to Nielsen, 84% of customers make purchase decisions based on
recommendations from their friends.

They offer incentives for riders to act as advocates for the business by providing referral codes to
their friends in exchange for free rides. Between a service that saves people time by making
ransportation easier and cost-effective and their powerful referral system, Uber spread like
wildfire.

5 – Dollar Shave Club

Shaving is the epitome of a boring routine, right?

If you answered “of course” then you obviously haven’t seen Dollar Shave Club’s now
legendary launch video:

DSC shook the notion of it being a drab, button-up industry and kicked it out the window.

Today this company has over a million subscribers, its promotional video has been viewed over
24 million times, and it was recently acquired for $1 billion by Unilever. During their hyper
growth, Dollar Shave Club continued to share cheeky content such as “Is It Bad to Pluck Nose
Hairs with My Fingers?” and “Do I Really Need to Wash My Hands After I Pee?” These guys
know how to let loose and get attention.

6 – The Wirecutter

Affiliate marketing can be a bit sleazy, but it can generate big results when done properly and
genuinely. The Wirecutter has set the standard since its launch just five years ago. Labeling itself
a simple “list of the best gadgets—like cameras and TVs—for people who don’t want to take a lot
of time figuring out what to get,” the site generated $150 million in e-commerce transactions in
2015 and was recently acquired by the New York Times for $30 million.

They write reviews for products they love, embed a link to buy it from someone like Amazon, and
take a cut of each sale. Their reviews take anywhere from 20 to 200 hours to complete, involving
experts and other interested parties depending on the product.
7 – Slack
Slack is a collaboration tool that allows teams to communicate more efficiently and share files, all
on one easy platform.

They’ve had a pretty spectacular rise, with 15,000 users at launch in 2014, just north of 171,000
six months later, over 500,000 in less than a year, and currently sitting at roughly 5,000,000 (nearly
one and a half million of which are paid accounts).

Their “secret sauce” is delivering a high-quality customer experience. The company responds to
8,000 help desk tickets and up to 10,000 tweets each month. Even their Twitter feed contains a
bunch of 140-character #SlackTips.

8 – Airbnb

Airbnb has changed the way we travel and look for accommodations.

Launched when its founders couldn’t afford their rent, the site now boasts 100 million users, 2.3
million listings, and a total valuation of $31 billion in 2017.

Their marketing strategy is aimed at getting both travelers and hosts for the platform. Its digital
marketing relies primarily on user-generated images and videos on Facebook, Instagram, and
Twitter (highlighting the cities and properties in its stable), how-to videos and posts geared towards
owners, and popular city guides. Their Instagram campaign matches humor with compelling
images of different travel locations around the world, making it more than just a service – it’s a
travel forum as well.

When it comes to social media superstars, Airbnb shines the brightest. During a 2015 Instagram
campaign, the company received 13.3 million interactions and increased followers by 341%.

9 – JetBlue

One of the biggest mistakes we see companies making when it comes to online marketing
strategies is the tendency to post self-promotional materials only. And really, nobody wants to
follow a company that can’t stop talking about itself long enough to post something of real value!

JetBlue, the popular discount airline, is one company that gets it. Instead of using Twitter to post
fare discounts and special offers, the company uses its handles to provide fast and easy customer
service. In fact, the effect is so profound that nearly all the messages in the company’s feed include
@ replies, which is highly unusual in the world of social media marketing for businesses.
 Que-5: Illustrate EDI with suitable example?

Electronic Data Interchange (EDI) is the computer-to-computer exchange of business

documents in a standard electronic format between business partners.
By moving from a paper-based exchange of business document to one that is electronic, businesses
enjoy major benefits such as reduced cost, increased processing speed, reduced errors and
improved relationships with business partners. Learn more about the benefits of EDI here »
Each term in the definition is significant:

• Computer-to-computer– EDI replaces postal mail, fax and email. While email is also an
electronic approach, the documents exchanged via email must still be handled by people rather
than computers. Having people involved slows down the processing of the documents and
also introduces errors. Instead, EDI documents can flow straight through to the appropriate
application on the receiver’s computer (e.g. the Order Management System) and processing
can begin immediately.

A typical manual process looks like this, with lots of paper and people involvement:

The EDI process looks like this – no paper, no people involved:

 • Business documents – These are any of the documents that are typically exchanged between
businesses. The most common documents exchanged via EDI are purchase orders, invoices
and Advance Ship Notices. But there are many, many others such as bill of lading, customs
documents, inventory documents, shipping status documents.

• Standard format– Because EDI documents must be processed by computers rather than
humans, a standard format must be used so that the computer will be able to read and
understand the documents. A standard format describes what each piece of information is and
in what format (e.g. integer, decimal, mmddyy). Without a standard format, each company
would send documents using its company-specific format and, much as an English-speaking
person probably doesn’t understand Japanese, the receiver’s computer system doesn’t
understand thecompany-specific format of the sender’s format.There are several EDI
standards in use today, including ANSI, EDIFACT, TRADACOMS and XML. And, for each
standard there are many different versions, e.g. ANSI 5010 or EDIFACT version D12,
Release A. When two businesses decide to exchange EDI documents, they must agree on the
specific EDI standard and version. Businesses typically use an EDI translator – either as in-
house software or via an EDI service provider – to translate the EDI format so the data can be
used by their internal applications and thus enable straight through processing of documents.

• Business partners – The exchange of EDI documents is typically between two different
companies, referred to as business partners or trading partners. For example, Company A may
buy goods from Company B. Company A sends orders to Company B. Company A and
Company B are business partners.

EDI Example:

The Bergen Brunswig Drug Company, a wholesale pharmaceutical distributor in Orange,

California, is one of the most successful companies in using EDI for many of its business
processes. To generate an order to Bergen Brunswig, a customer (pharmacist) uses a handheld bar
code scanner to capture the UPC (Uniform Product Code) number on a shelf label for a product to
be ordered. The pharmacist enters the quantity desired into a keypad on the scanner and moves
onto the next item. All items in the pharmacy can be scanned in only a few minutes.
A microcomputer next reads the information contained in the scanner and an electronic order is
prepared for the pharmacist's review. The order is sent via EDI to a Bergen Brunswig distribution
center where the order is analyzed and resequenced to match the product location in the distribution
center. Within five hours, the order is delivered to the pharmacy. Bergen Brunswig has been able
to eliminate all order takers, reduce errors to near zero, fulfill orders faster, reduce overhead costs,
and build customer loyalty. The company also uses EDI for sending purchase orders to
pharmaceutical manufacturers, receiving invoices, and handling charge backs.
The JCPenney Company has an operating center in Salt Lake City, Utah, which uses EDI to receive
almost all of its invoices from suppliers. The result has been substantial savings in terms of
personnel costs (four processing centers were combined into one and several hundred people who
did manual processing were no longer needed), a reduction in errors, faster matching of invoice
and purchase order, more timely payments, and a reduction in paper storage requirements.
U.S. auto manufacturers are also extensive users of EDI. Chrysler, as illustrated in Figure 3, has
applied EDI to reengineer its manufacturing processes. Once a contract has been negotiated with
a parts supplier, Chrysler sends the supplier weekly electronic material releases specifying the
intended use of parts over an eight-week horizon. Several days before the parts are needed,
Chrysler sends an EDI delivery order to the supplier detailing precisely how many parts are needed
for delivery on a certain date, where the parts are to be delivered, what bar coding is to be put on
the containers, and when delivery is expected. Some suppliers are told how to sequence the parts
on the truck for most effective unloading. After the supplier loads the parts, an EDI advanced
shipping notice is sent to Chrysler verifying that the delivery is on the way. Chrysler scans the
parts in as they arrive and may send an electronic discrepancy report if there are problems.
Payments are often made electronically on a settlement date specified in the contract. No invoice
is used in this reengineered process. In this environment Chrysler needs very little inventory and,
in fact, has been able to shave approximately $ 1 billion from its parts inventory.

Exhibit 3
EDI in the Automotive Industry

Use of EDI is spreading to many different types of organizations. The insurance industry is
beginning to use EDI for health care claims, procedure authorization, and payments. Universities
are using EDI for sending grade transcripts, interlibrary material requests, and student loan
information. Retailers are sending EDI inventory data to suppliers and charging them with
oversight of inventory levels and shipment initiation. The federal government and most states are
now using EDI to collect tax filing information.
 Bibliography

• https://www.edibasics.com/what-is-edi/Paul J. Jackson, Lisa Harris, Peter M. Eckersley, 2003

- Business & Economics - 271 pages

• https://www.singlegrain.com/digital-marketing/10-companies-doing-online-marketing-right/

• https://www.slideshare.net/HubSpot/11-examples-of-online-marketing-success

• https://www.tutorialspoint.com/e_commerce/e_commerce_business_models.html

• http://www.yapstone.com/online-payment-processing/payment-systems/