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ANSWERS OF E-COMMERCE QUESTIONS*

(* ALL THE ANSWERS MAY NOT BE COMPLETE AND UPTO MARK ,BUT NONE OF THE ANSWER IS WRONG ,SOME ANSWERS ARE NOT GIVEN IN THE TEXT BECAUSE I DIDN’T FOUND THOSE

ANSWERS ON INTERNET AND NEITHER ON MY BOOK” MAMTA BHUSRY”,NO ONE IS RESPONSIBLE FOR THE CORRECTNESS OF ANY OF THE ANSWER)

1. What do you mean by Mobile Commerce? Which type of Protocols


are necessary for wireless application.

Ans: Mobile Commerce is any transaction, involving the transaction having


monetary value, which is initiated and/or completed by using wireless electronic
device such as mobile phone,PDAs,pagers etc. and mobile telecommunication
network.It is subset of e-commerce.
WAP( wireless access protocol is required for wireless application,which
is consist of many protocols
(i) WDP-: To allow transport, security, and session protocols to
operate independent of the underlying bearer (e.g. GSM,
CDMA, etc.) and to provide a UDP-like interface
(ii) WTLS-:provides the upper-level layer of WAP with a secure
transport service interface that preserves the transport
service interface (datagram) below it.
Security level of WTLS depends on the requirements of the
given application

(iii) WTP-:it provides transaction support,adding reliability to a


datagram service provider by WDP

(iv) WSP-: A light-weight session layer to allow efficient


exchange of data between applications
2. Discuss the importance of client server network model. How can Security be
achieved with this model?

Ans : The client-server software architecture model distinguishes client systems from
server systems, which communicate over a computer network. A client-server application
is a distributed system comprising both client and server software. A client software
process may initiate a communication session, while the server waits for requests from
any client.

Importance of client server model

• In most cases, a client-server architecture enables the roles and responsibilities of


a computing system to be distributed among several independent computers that
are known to each other only through a network. This creates an additional
advantage to this architecture: greater ease of maintenance. For example, it is
possible to replace, repair, upgrade, or even relocate a server while its clients
remain both unaware and unaffected by that change. This independence from
change is also referred to as encapsulation.
• All the data is stored on the servers, which generally have far greater security
controls than most clients. Servers can better control access and resources, to
guarantee that only those clients with the appropriate permissions may access and
change data.
• Since data storage is centralized, updates to that data are far easier to administer
than what would be possible under a P2P paradigm. Under a P2P architecture,
data updates may need to be distributed and applied to each "peer" in the network,
which is both time-consuming and error-prone, as there can be thousands or even
millions of peers.
• Many mature client-server technologies are already available which were
designed to ensure security, 'friendliness' of the user interface, and ease of use.
• It functions with multiple different clients of different capabilities.

3. (a) What is WAP technology? Discuss the various mobile Information devices.
Ans: WAP technology as discussed in Q1.

(b) Discuss the benefits of Supply Chain Management.

Some of the specific benefits for implementing SCM which have been
mentioned in this newsgroup over the years include:

* desire to protect their huge investment in software and be able to


reproduce a build with the correct components or continue
development on a project even if those previously working on it
have left the company or become seriously ill
* desire to improve quality and reduce errors caused by building
products with the wrong version or some old code which did not
include a current fix
* simplification of a complicated build and/or release process
* desire to streamline processes and let developers worry about
actual development
* reduction of day-to-day labor, thus allowing an under-staffed or
over-busy team to produce more useful work
* facilitation of moving personnel from one project to another with
little or no loss of productivity since both projects follow the
same process
* elimination of instances in which software needed to investigate
customer-reported problems could not reproduced or rebuilt
* hiring of new team members (particularly leaders and/or managers)
who had good experiences with SCM in prior businesses and
advocated such improvements
* need to perform concurrent development at multiple locations,
particularly if that is already being tried and has gotten out of
hand
* improvement of the faith a Quality Assurance group can have in a
new version of a product for which they are responsible, and
highlighting of areas where a new product version should be
scrutinized during Quality Assurance

A side benefit of implementing a good SCM process is that it will


help enable a company to be assessed at a higher SEI Level and/or
obtain ISO 9000 certification. (Note that these are side benefits,
SCM should be approached from the standpoint that it can help you
produce better, more reliable products faster, rather than for the
purpose of attaining an award or certification.)

4. Discuss the importance of Mobile Computing Applications. Explain various Mobile


information devices in the light of Mobile Commerce.

Ans: Mobile computing is a generic term describing one's ability to use technology
while moving, as opposed to portable computers, which are only practical for use while
deployed in a stationary configuration.
5. (a) Explain clearly, the concept of supply chain management giving
Suitable example.

Supply chain management


Supply chain management

purchasin distributio
production
suppliers g n
internal supply chain
consumers

Supply chain management is a cross-functional approach to manage the movement of raw


materials into an organization, certain aspects of the internal processing of materials into
finished goods, and then the movement of finished goods out of the organization toward
the end-consumer
SCM includes

• Customer relationship management


• Customer service management
• Demand management
• Order fulfillment
• Manufacturing flow management
• Supplier relationship management
• Product development and commercialization
• Returns management
(b) Explain the difference between a packet-filtering firewall and an
Application-level proxy server.
Ans : Packet filtering firewall

Packet Private
internet network
filtering
router

Application level proxy server

Outside telnet Inside host


host
FTP
SMTP
HTTP

Packet filtering applies a set of rules to each incoming IP packet and then forwards or
discard the packet on the basis whether the firewall deny or permit the request.It is based
on IP only,and work in both direction
Application-level proxies stand outside a network and relay data between the Internet and
applications on a desktop. Instead of a direct connection between an internal and external
network, application-level proxies serve as a middle-man for Internet services. The proxy
intercepts all traffic and relays packets of data back and forth between a desktop
application and an Internet service. Many of today's firewalls use and depend on
application-level proxy technology .It is provides more secure connection than packet
filtering.

6. (a) What are the various components of the I-way, discuss it along with a
proper diagram.
Ans: Components of I-way
There are basically three components
(i)Consumer access equipment : it includes various software and hardware which
provides basis for I-way like routers,switches,computers ,set top box,operating
system etc..
(ii)Local on ramps: it provides the linkage between acess equipment and distribution
network. It is of further four types
(a) Telecom based
(b) Cable TV based
(c) Wireless based
(d) Computer based

(iii) Global information distribution system: It provides the infrastructure for


informantion distribution between different places.It consist of network of optic fibre
,radio based,satellite etc.

Consumer Telcom based Global


access information
equipment Cable TV based distribution
system
Wireless based
Computer based

(b) Differentiate between E-Commerce and M-Commerce.


Ans: E-Commerce M-Commerce
1. Faster comaratively slow
2.can easily perform it is difficult in m-commerce
Big transaction easily
3.Uses HTML WML
4. Uses TCP/IP GSM,TDMA,CDMA

7 (i) What is WAP; discuss it with reference to mobility


Ans: already answered
(ii) What do we mean by TDMA, what technology is used in TDMA. List the
various benefits of TDMA over CDMA.
Ans: Time division multiple access (TDMA) is a channel access method for
shared medium (usually radio) networks. It allows several users to share the same
frequency channel by dividing the signal into different time slots. The users transmit
in rapid succession, one after the other, each using his own time slot. This allows
multiple stations to share the same transmission medium (e.g. radio frequency
channel) while using only a part of its channel capacity. It is used for GSM
connectivity and also for sattelite communicatio

TDMA features
• Shares single carrier frequency with multiple users
• Non-continuous transmission makes handoff simpler
• Slots can be assigned on demand in dynamic TDMA
• Less stringent power control than CDMA due to reduced intra cell interference
• Higher synchronization overhead than CDMA
• Advanced equalization is necessary for high data rates
• Cell breathing (borrowing resources from adjacent cells) is more complicated than
in CDMA
• Frequency/slot allocation complexity
• Pulsating power envelop: Interference with other devices

CDMA and TDMA both technology have their own set of merits and it can not be
concluded that which one is better
Benefits of TDMA over CDMA
--Dynamic channel allocation
--multiple users can share same network equipment
--CDMA transmits continuously at slow rate, while TDMA transmits only during
assigned burst period
--CDMA increase networkcost by continuously comparing & selecting voice
path,while TDMA doesn’t do such things
8. What do you mean by Encryption? Discuss various Encryption Techniques used
for web security.
encryption is the process of transforming information (referred to as plaintext) using an
algorithm (called cipher) to make it unreadable to anyone except those possessing special
knowledge, usually referred to as a key
It is broadly classified into two types
(i) Private key encryption

Both are same keys k


ke (secret key) e
y
Plain text Encryption Cipher Decryption
algo text Plain text
algo

(ii) Public key encryption

(public key) Both keys are different (private key)


ke
ke
y
y
Encryption Cipher
Plain text algo text Decryption Plain text
algo

9. (a) Discuss the mechanism of Video on demand system/server

(b) Write short notes on:


(i) Virus is a code segement that replicates by attaching copies of itself to
existing executable files(.exe),the new copy of virus is executed whenever user run
that .exe file,virus may include payload that triggers when specific set of condition is
satisfied
Example-deletes all the files of the present folder on specified date
(ii) Trojan Horse ,Trojan horse, also known as a trojan, is malware that appears
to perform a desirable function but in fact performs undisclosed malicious functions
For example: A program named "waterfalls.scr" serves as a simple example of a
trojan horse. The author claims it is a free waterfall screen saver. When run, it instead
unloads hidden programs, commands, scripts, or any number of commands without
the user's knowledge or consent. Malicious Trojan Horse programs are used to
circumvent protection systems in effect creating a vulnerable system to allow
unauthorized access to the user's computer.

(iii) Worm
A computer worm is a self-replicating computer program. It uses a network to send
copies of itself to other nodes (computer terminals on the network) and it may do so
without any user intervention. Unlike a virus, it does not need to attach itself to an
existing program. Worms almost always cause harm to the network, if only by consuming
bandwidth, whereas viruses almost always corrupt or modify files on a targeted computer.

10 (i) What are the two broad areas of security concerns in E-Commerce?
(ii) What are the various protection mechanisms employed for security.
(iii) Discuss Firewalls and Network Security
Ans same Q17.
(iv) What is health care EDI?
11. Explain the various issues involved in Electronic Payment System. Also give the
various types of EPS.

12. List the different models of Electronic Payment. Explain in details the digital token
based electronic payment system.

13. Write a short note on any one of the following:


(i) Digital token based Electronic payment systems.
(ii) Smart cards based Electronic payment systems.
Smart cards are cards that look like credit cards, but store information on a
microprocessor chip instead of magnetic strips. A microchip can hold significantly
more information than a magnetic strip. Because of this capacity, a single smart card
can be used for many different purposes. Unlike magnetic strip cards which can be
read by any magnetic reader, and are therefore vulnerable to loss or theft, a smart card
can be password-protected to guarantee that it's only used by the owner. Smart cards
can run RSA encryption and can be programmed to generate a pair of public/private
keys. The public key is made publicly readable, but the private key is be stored on the
card without anyone being able to copy it. Therefore, to use the private key, the user
must physically possess the card. Smart cards are used in European telephones, and
are gaining popularity for other purposes both in Europe and in the US.

(iii) Differentiate between EDI and E-mail


Ans: EDI can be formally defined as 'The transfer of structured data, by agreed
message standards, from one computer system to another without human intervention'
EDI is different from e-mail --:
1. EDI always have some economic profit motive ,but e-mail doesn’t
2. EDI follows some standard,but e-mail can be in any format as it can be informal
as well
3. EDI use digital signatures for verification,but e-mail doesn’t need it
4. EDI technology is an innovated form of e-mail
14. (i) What is online banking? State the merits and demerits of online banking.
Ans: Online banking (or Internet banking) allows customers to conduct financial transactions on
a secure website.It can be used to perform all types of banking transactions
--bank statement
--fund transfer
--investment
--loan

The Advantages of Online Banking

First and foremost, online banking is very, very, very convenient. It will allow you to pay
your bills and make transactions anytime during the day and the week. The bank will
never close because you can access it through your laptop or computer. So, no matter in
which country you are anywhere in the world, you can go online and handle your
finances.

Secondly, online banking is very fast, effective and efficient. Over the Internet, you can
make transactions that are typically executed and performed at a much faster pace than
at ATM’s. Online banking services also give you the option of handling several different
bank accounts from one site itself.

Most online banking sites are compatible with programs like Microsoft Money and
Quicken, which makes management of assets more effective.

The Disadvantages of Online Banking

Just like with anything else, there are disadvantages to online banking services too!
--
the biggest problem is that most people lack trust.
--
Online banking can be difficult to learn for a beginner and a site could take time to start
up.
Some sites provide live online customer support to provide solutions for any problems.
Banking frauds: The number of cases of banking frauds is considerably low so you don’t
have to worry about the safety of your money.

(ii)State the difference between inter and intra organizational E-commerce.


Ans: Intra organizational e-commerce is transaction such as sharing databases,integrated
messaging etc between the various departments or offices of same organization located
at different places using intranet and internet is called intra organizational e-commerce

Interorganisational E-commerce
E-commerce activities such as Electronic data interchange, electronic fund transfer
,supply chain management etc. between two or more organizations is called
interorganisational e-commerce.

(iii) What are the two pillars of e-commerce business? Describe in detail.
15. Give the layered structure of EDI and compare EDI versus e-mail. Conceptualize EDI
and compare EDI versus e-mail. Discuss the Legal issues related with e-commerce.
Ans: EDI is considered to be a technical representation of a business conversation
between two entities, either internal or external. EDI constitutes the entire electronic data
interchange paradigm, including the transmission, message flow, document format, and
software used to interpret the documents. EDI is considered to describe the rigorously
standardized format of electronic documents.

16. What do you understand by customer relationship management? What importance has
customer relationship mgmt got in E-Com? How will you implement customer
CRM stands for Customer Relationship Management. It is a process or
methodology used to learn more about customers' needs and behaviors in
order to develop stronger relationships with them. There are many
technological components to CRM, but thinking about CRM in primarily
technological terms is a mistake. The more useful way to think about CRM is
as a process that will help bring together lots of pieces of information about
customers, sales, marketing effectiveness, responsiveness and market
trends.
CRM helps businesses use technology and human resources to gain insight
into the behavior of customers and the value of those customers

Importance of CRM

--Provide better customer service

--Increase customer revenues

--Discover new customers

--Cross sell/Up Sell products more effectively

--Help sales staff close deals faster

--Make call centers more efficient

--Simplify marketing and sales processes

17. . Short Notes:


(i) Legal requirement in E-Commerce
Ans: check out answer no 20

(ii) Firewall and network security

A firewall is a dedicated appliance, or software running on another computer, which


inspects network traffic passing through it, and denies or permits passage based on a set
of rules.A firewall's basic task is to regulate some of the flow of traffic between computer
networks of different trust levels. Typical examples are the Internet which is a zone with
no trust and an internal network which is a zone of higher trust

Network security consists of the provisions made in an underlying computer network


infrastructure, policies adopted by the network administrator to protect the network and
the network-accessible resources from unauthorized access and consistent and continuous
monitoring and measurement of its effectiveness (or lack) combined together.

(iii) World Wide Web and Security


The World Wide Web (commonly shortened to the Web) is a system of interlinked
hypertext documents accessed via the Internet. With a Web browser, one can view Web
pages that may contain text, images, videos, and other multimedia and navigate between
them using hyperlinks
Viewing a Web page on the World Wide Web normally begins either by typing the URL
of the page into a Web browser, or by following a hyperlink to that page or resource. The
Web browser then initiates a series of communication messages the server-name portion
of the URL is resolved into an IP address using the global, distributed Internet database
known as the domain name system, or DNS. This IP address is necessary to contact and
send data packets to the Web server.The browser then requests the resource by sending an
HTTP request to the Web server at that particular address. In the case of a typical Web
page, the HTML text of the page is requested first and parsed immediately by the Web
browser, which will then make additional requests for images and any other files that
form a part of the page. Statistics measuring a website's popularity are usually based on
the number of 'page views' or associated server 'hits', or file requests, which take
place.Having received the required files from the Web server, the browser then renders
the page onto the screen as specified by its HTML

18. Critically comment on E-commerce as a new and effective way for conducting
business product and providing better customer services on the Internet.
Ans: E-commerce is new and effective way for conducting business due to following
reasons -:

Catalog flexibility and Online fast updating

• Direct "link" capabilities to content information and visual displays already


existing on other client web site. You can update your E-Catalog anytime,
whether it's adding new products, or adjusting prices, without the expense and
time of a traditional print catalog.
• Extensive search capabilities by item, corporate name, division name, location,
manufacturer, partner, price or any other specified need.

Shrinks the Competition Gap

• Reduced marketing/advertising expenses, compete on equal footing with much


bigger companies; easily compete on quality, price, and availability.
Unlimited Market Place and Business Access Which Extend Customer Base

• The Internet gives customers the opportunity to browse and shop at their
convenience and at their place. They can access your services from home,
office, or on the road, 24 hours a day, 7 days a week.
• The Internet allows you to reach people around the world, offering your products
to a global customer base.

A 24 Hour Store Reduced Sale Cycle

• Reduce unnecessary phone calls and mailings.

Lower Cost of Doing Business

• Reduce inventory, employees, purchasing costs, order processing costs


associated with faxing, phone calls, and data entry, and even eliminate physical
stores. Reduce transaction costs.

Eliminate Middlemen

• Sell directly to your customers.

Easier Business Administration

• With right software, store inventory levels, shipping and receiving logs, and other
business administration tasks can be automatically stored, categorized and
updated in real-time, and accessed on demand.

Frees Your Staff

• Reduce customer service and sales support.

Customers will love it

• Gives customers control of sales process. Builds loyalty.

More Efficient Business Relationships

• Better way to deal with dealers and suppliers.

Workflow automation

• Shipping, real time inventory accounting system which adjusts stock levels and
site, location availability instantaneously
• Secured, automated registration verification, account entry and transaction
authorization features
• Automated RFP and RTQ features for vendor bid development and selection.
• Banking and accounting features customized for pre-approved third party direct
sales, vendor, consignment or internal transfer transactions.

Secure Payment Systems


• Recent advancements in payment technologies allow encrypted, secure payment
online.

19. What is the Customer-Oriented value chain? Describe three forces lead to the www’s
emerges as the single most dynamic force in information technology.

20. (i) What is the difference between public key encryption and private key encryption?
Ans: Difference between public key encryption and private key encryption
--public key encryption do not use any shared key
--digitals signature can be used in public key encryption for authentication
--public key encryption is considered more secure than private key

(ii) Discuss the importance of Supply chain management.


Importance of Supply Chain Management
Supply chain management is essential to company success and customer
satisfaction. Did you know that SCM also plays a critical role in society? It's
absolutely true. SCM knowledge and capabilities can be used to support
medical missions, conduct disaster relief operations, and handle other types
of emergencies. SCM also plays a role in cultural evolution and helps improve
our quality of life.

Whether dealing with day-to-day product flows or dealing with an unexpected


natural disaster, supply chain experts roll up their sleeves and get busy. They
diagnose problems, creatively work around disruptions, and figure out how to
move essential products to people in need as efficiently as possible.

Business impact of SCM

Boost Customer Service


Right Product Assortment and Quantity
Customers expect the correct product assortment and quantity to be delivered.

Right Stock Location


Customers expect products to be available at the right location. For example, customers
will be upset if the auto dealership does not have the necessary parts for repair in stock
and as a result, must keep the customer's car a day or two until parts arrive.

Right Delivery Time


Customers expect products to be delivered on-time. For instance, customers will be upset
if pizza delivery is two hours late or Christmas presents are delivered on December 26th .

Right After Sale Support


Customers expect products to be serviced quickly. For example, when a home furnace
stops operating in the winter, customers will demand repair in minutes or hours not days!

Improve Financial Position


Increases Profit Leverage
Firms value supply chain managers because they help control and reduce supply
chain costs. This can result in dramatic increases in firm profits.

Decreases Fixed Assets


Firms value supply chain managers because they decrease the use of large fixed assets
such as plants, warehouses and transportation vehicles in the supply chain
Increases Cash Flow
Firms value supply chain managers because they speed up product flows to customers

Reduce Operating Costs


Decreases Purchasing Cost
Retailers depend on supply chains to quickly deliver expensive products to avoid holding
costly inventories in stores any longer than necessary.

Decreases Production Cost


Manufacturers depend on supply chains to reliably deliver materials to assembly
plants to avoid material shortages that would shutdown production.
Decreases Total Supply Chain Cost
Manufacturers and retailers depend on supply chain managers to design networks that
meet customer service goals at the least total cost. Efficient supply chains enable a
firm to be more competitive in the market place.

(iv) State the advantage and disadvantage of home banking.


Ans: same ans as 14 (i)
(v) What are the legal requirements in E-commerce?
Ans: E-commerce is suffering from piracy, hacking ,cracking
Copyright problem etc…which lead to the foundation of
e-law or cyber law,but still e-commerce needs more powerful law and
regulation
why it is needed
--Internet provide the largest opportunity for free speech that have ever
existed ,but this freedom may offend some people ,
--Copying and dissemination of intellectual property on the web is very
common and difficult to control as well,
--collection and use of personal data is considered to be unethical in many cases

Legal and ethical issues are very important for e-commerce


Many corporation such as Organisation for economic cooperation an
development and commerce netare active in this area

Keeping in line with other countries, India also has passed its first cyber law, The Information 
Technology Act 2000, which aims to provide the legal backbone for enabling e­commerce in the 
country. However the arrival of Internet resulted in the rise of new and complex legal issues. 
Though India has a detailed and well­defined legal system in place, with laws like the Indian 
Penal Code, the Indian Evidence Act 1872, the Banker's Book Evidence Act, 1891 and the 
Reserve Bank of India Act, 1934, the Companies Act, and so on. But at the time of enactment of 
these laws nobody could really visualise about the Internet. We must remember that all the 
existing laws in place in India were enacted keeping in mind the relevant political, social,
economic, and cultural scenario of the corresponding time. As like the rest of the world, the 
existing laws of India also could not handle the various cyber space activities. As such the need 
arose for a Cyber Law.

BEST OF LUCK !!!!! SECURE FULL MARKS!!!

AND REMEMBER ONE RULE “CONFUSE THE EXAMINER WHEN YOU DO NOT 
KNOW THE EXACT ANSWER”