Ecommerce

1. 1 | P a g e SYLLABUS UNIT-1:Introduction,ElectronicCommerce Framework,the Anatomyof E-Commerceapplications,E-Commerce Consumerapplications,E-Commerce organizationapplications. UNIT-2: ConsumerOrientedApplications,mercantile processmodels,mercantile modelsfromthe consumer’sperspective,Mercantilefromthe merchant’sperspective. UNIT-3: Typesof ElectronicPaymentSystems,Digital Token-BasedElectronicPayment Systems,SmartCards& ElectronicPaymentSystems,CreditCard- BasedElectronicPaymentSystems,Risk& ElectronicPaymentSystems,DesigningElectronicPaymentSystems. UNIT-4: ElectronicDataInterchange,EDIApplicationsinBusiness,EDIimplementation,MIME,and value addednetworks. UNIT-5: IntraorganizationalE-Commerce,Macroforcesand Internal Commerce,Workflow automationandCoordination,CustomizationandInternal Commerce,SupplyChain Management(SCM). UNIT-6:Makinga businesscase fora DocumentLibrary,Digital documenttypes,Corporate Data warehouses,AdvertisingandMarketing,the new age of InformationBasedMarketing,Advertisingon Internet,chartingthe Online marketingprocess,MarketResearch. UNIT-7: Consumer SearchandResource Discovery,informationsearchandRetrieval,Electroniccommerce catalogsor directories,InformationFiltering. UNIT-8: MultimediaandDigital video,KeyMultimediaconcepts,Digital Video&ElectronicCommerce,Desktop VideoProcessing,DesktopVideoConferencing. Text Books: 1.Frontiersof electroniccommerce – Kalakota,Whinston,Pearson 2. E-Commerce,S.Jaiswal–Galgotia

2. 2 | P a g e Unit- I 1. Introduction: • It isa general conceptcoveringanyformof businesstransactionorinformationexchange executedusing informationandcommunicationtechnologies(ICT’s) • It includeselectronictradingof goods,servicesandelectronicmaterial. • It takesplace betweencompanies,betweencompaniesandtheircustomers,orbetweencompaniesand publicadministrations. Theycan be classifiedbyapplicationtype: 1. Electronic Markets • Presentarange of offeringsavailable inamarketsegmentsothatthe purchasercan compare the prices of the offeringsandmake apurchase decision. Example:Airline BookingSystem 2. Electronic Data Interchange (EDI) • It providesastandardizedsystem • Codingtrade transactions • Communicatedfromone computertoanotherwithoutthe needforprintedordersandinvoices&delays& errorsin paperhandling • It isusedby organizationsthata make a large no.of regulartransactions Example: EDI is used in the large market chains for transactions with their suppliers 3. Internet Commerce • It isuse to advertise &make salesof wide range of goods& services. • Thisapplicationisforbothbusinesstobusiness&businesstoconsumertransactions.

3. 3 | P a g e Example:The purchase of goodsthat are thendeliveredbypostorthe bookingof ticketsthatcan be pickedupby the clientswhentheyarrive atthe event 2. Scope of E-Commerce: • Internete-commerce isone partof the overall sphere of e-commerce. 3. Electronic Commerce and the trade cycle: • It can be appliedtoall,orto differentphasesof the trade cycle • The trade cycle variousdependingon The nature of the organizations Frequencyof trade betweenthe patternstothe exchange The nature of goodsand servicesbeingexchanged • Trade cycle support 1. Findinggoodsandservices(referredtoasa search& negotiation) 2. Placingthe order,takingdelivery &makingpayment(executionandsettlement) 3. Aftersalesactivitiessuchaswarrantee,servicesetc. The three generic trade cycles can be identified: 1. Regular,repeattransactions(repeattrade cycle) 2. Irregulartransactions,where execution&settlementare separated(credittransactions) 3. Irregular transactionswhere execution &settlementare combined(cashtransactions)

4. 4 | P a g e Electronic Markets: • It increasesthe efficiencyof the market • It reducesthe searchcost for the buyer& makesitmore likelythatbuyerwill continue the searchuntil the bestbuyis found • It existincommodity,financial markets&theyare also usedinairline bookingsystem • It isirregulartransactiontrade cycle. Electronic Data Interchange: • Applicationsare sendingtestresultsfromthe pathologylaboratorytothe hospital ordispatchingexam resultsfromexamboardsto school It isusedtrade exchanges

5. 5 | P a g e Users are vehicle assemblers,orderingcomponentsforthe supermarkets It isusedfor regularrepeattransactions It takesquite lotof work toset upsystems It ispart of schemesforjust-in-manufacture andquickresponsesupply Mature use of EDI allowsfora change inthe nature of the productor service Mass Customizationissuchanexample Internet Commerce: The first stage Advertisingappropriate goodsandservices Internetsitesofferonlyinformation&anyfurtherstepsdownthe trade cycle are conductedonthe telephone The Second stage An increasingno.of sitesofferfacilitiestoexecute &settle the transaction Deliverymaybe electronicorby home deliverydependingonthe goodsandservices The final stage After-salesservice On-line support&On-Line services.

6. 6 | P a g e Generic Framework of Electronic Commerce Electronic Commerce Applications SupplyChain Management Online Marketing and Advertising Procurement & Purchasing Online Shopping Audio and Video on D emand Online Financial Transaction Entertainment and Gaming Education and Research Common Business Services Infrastructure (Security/Authentication, Electronic Payment, Directories/Catalogs) Multimedia Content & Network Publishing Infrastructure (Digital Video, Electronic Books, World Wide Web) Messaging & Information Distribution Infrastructure (EDI, E-Mail, Hy perText Transf er Protocol) Information Superhighw ay Infrastructure (Telecom, Cable TV, Wireless, Internet)

7. 7 | P a g e 3. Electronic Commerce Framework • E-Commerce applicationwillbe builtonthe existingtechnologyinfrastructure A myriadof computers Communicationnetworks Communicationsoftware • Commonbusinessservicesforfacilitatingthe buyingandsellingprocess • Messaging& informationdistributionasameansof sendingandretrievinginformation • Multimediacontent&networkpublishing,forcreatingaproduct& a meansto communicate aboutit • The informationsuperhighway- the veryfoundation-forprovidingthe highwaysystemalongwhichall e- commerce musttravel • The two pillarssupportingall e-commerce applications&infrastructure • Anysuccessful e-commerce will require the I-wayinfrastructure inthe same waythatregularcommerce needs • I-waywill be ameshof interconnecteddatahighwaysof manyforms Telephone,wires,cable TV wire Radio-basedwireless-cellular&satellite • Movies=video+audio • Digital games=music+video+ software • Electronicbooks=text+data + graphics+ music+ photographs+ video • In the electronic‘highwaysystem’multimediacontentisstoresinthe formof electronicdocuments • These are oftendigitized • On the I-waymessagingsoftware fulfillsthe role,inanyno.of forms:e-mail,EDI,orpoint-to-pointfile transfers • Encryption& authenticationmethodstoensure security • Electronicpaymentschemesdevelopedtohandle complex transactions

8. 8 | P a g e • These logisticsissuesare difficultinlong-establishedtransportation 4. Anatomy of E-Commerce applications E-Commerce applications are: 1. MultimediaContentforE-Commerce Applications 2. MultimediaStorage Servers&E-Commerce Applications i. Client-ServerArchitecture inElectronicCommerce ii.Internal Processesof MultimediaServers iii.Video Servers& E-Commerce 3. InformationDelivery/Transport&E-Commerce Applications 4. ConsumerAccessDevices Multimedia Content for E-Commerce Applications • Multimediacontentcanbe consideredbothfuel andtrafficforelectroniccommerce applications. • The technical definitionof multimediaisthe use of digital datainmore than one format,such as the combinationof text,audio,video,images,graphics,numericaldata,holograms,andanimationsina computerfile/document. • MultimediaisassociatedwithHardware componentsindifferentnetworks. • The Accessingof multimediacontentdependsonthe hardware capabilitiesof the customer.

9. 9 | P a g e Multimedia Storage Servers & E-Commerce Applications: • E-Commerce requiresrobustserverstostore anddistribute large amountsof digital contenttoconsumers. • These Multimediastorage serversare large informationwarehousescapable of handlingvariouscontent, rangingfrombooks,newspapers,advertisementcatalogs,movies,games,&X-rayimages. • These servers,derivingtheirname because theyserveinformationuponrequest,musthandle large -scale distribution,guarantee security,&complete reliability i. Client-Server Architecture in Electronic Commerce • All e-commerce applicationsfollow the client-servermodel • Clientsare devicesplussoftware thatrequestinformationfromserversorinteractknownasmessage passing • Mainframe computing,whichmeantfor“dump” • The clientservermodel,allowsclienttointeractwithserverthroughrequest-replysequence governedbya paradigmknownas message passing. • The servermanagesapplicationtasks,storage &security& providesscalability-abilitytoaddmore clientsand clientdevices(likePersonal digital assistantstoPc’s.See infig.

10. 10 | P a g e ii. Internal Processes ofMultimedia Servers • The internal processesinvolvedinthe storage,retrieval &managementof multimediadataobjectsare integral toe-commerce applications. • A multimediaserverisa hardware & software combinationthatconvertsraw data intousable information& thendishesout. • It captures,processes,manages,&deliverstext,images,audio&video. • It mustdo to handle thousandsof simultaneoususers. • Include high-endsymmetricmultiprocessors,clusteredarchitecture,andmassive parallelsystems. iii. Video Servers & E-Commerce The electroniccommerce applicationsrelatedtodigital videowill include 1. Telecommunicatingandvideoconferencing 2. Geographical informationsystemsthatrequire storage &navigationovermaps 3. Corporate multimediaservers 4. Postproductionstudios 5. Shoppingkiosks. • Consumerapplicationswillinclude video-on-demand. • The figure whichisof video–ondemandconsistvideoservers,isanlinkbetweenthe contentproviders (media) &transportproviders(cable operators)

11. 11 | P a g e Information Delivery/Transport & E-Commerce Applications • Transport providersare principallytelecommunications,cable,&wirelessindustries. Transport Routers InformationTransportProviders InformationDeliveryMethods • Telecommunicationcompanies long-distancetelephone lines;local telephone lines • Cable televisioncompanies Cable TV coaxial,fiberoptic&satellitelines • Computer-basedon-lineservers Internet;commercial on-line service providers • Wirelesscommunications Cellular&radionetworks;pagingsystems Consumer AccessDevices InformationConsumers AccessDevices • Computerswithaudio&video Personal/desktopcomputingcapabilities Mobile computing • Telephonicdevices Videophone • Consumerelectronics Television+set-topbox Game systems • Personal digital assistants(PDAs) Pen-basedcomputing,voice-drivencomputing E-Commerce Consumer applications:

12. 12 | P a g e • People needsentertainmentondemandincludingvideo,games,newson-demand,electronicretailingvia catalogsetc. • Currentlynowwe are takingthe videoon-demand. • Why mostcompaniesbettingheavilyonthis? 1. 93 millionhomeshave television 2. Americansspendnearlyhalf theirfree time watchingtelevision 3. Everyevening,more thanone-thirdof the populationisinfrontof a television4.Sight,sound,andmotion combine tomake televisionapowerfulmeansof marketing 1. Consumer Applications and Social Interaction: • Lessonsfromhistoryindicate thatthe mostsuccessful technologiesare those thatmake theirmark social • In 1945, in U.S no one had TV.By 1960 about 86percentof householdsdid • Nowcontrast withTelephone.Bell inventedthe telephone in1876 and by1940, 40% of U.S. householdsandby1980 about 95-98 percentof householdsconnected • PenetrationwasslowerforTelephone thanforTV because of the effortneededtosetupthe wiringinfrastructure The impactof both wasgood onbusiness,social,consumerbehaviorandentertainmenthabits Radiobeganin 1960, and by 1989, almost3 decadeslater,just319 radiostationsfollowedthe news format In 1994, theirnumberexceeded1000 What do Consumers really want? 1. Theywant qualityandcostof service 2. If a newsystemrequiresmore stepstodoessentiallythe same things,consumersmayresistit 3. Some people fitthatmold,butmostof publicpreferstolayback and justwatch televisionandlet someone else dothe workof figuringoutthe sequence of televisionprogramming What are Consumers willing to spend?

13. 13 | P a g e 1. Accordingto the videoon-demand,consumersgetthe cable bill atbasiccharge theywill buy 2. If it is doubledtheywill notbuyandat the service providereconomicswill increasedthennetwork operatorsmightlooktoadvertisestofill the gap Delivering products to Consumers 1. Packingand distributionmustbe considered 2. Blockbustervideocollectsthe informationandshowsthe typical consumer 3. Spends$12 a monthon home videoexpenditures 4. Go to videostore toselectvideoonlimitedbudgetandhastime tokill 5. Onlyperiodicallyexpendsalarge sumof money Consumer Research and E-Commerce Consumeropinionaboutinteractivetelevisionis 46% be willingtopay 39% wantvideophone calls 63% wouldpayformovieson-demand 57% wouldpayforTelevisionshowson-demand 78% saidtheirworryaboutit is thattheywill payfor somethingthattheypreviouslyreceivedfreeof charge 64% are thinkitmake itharder forviewerstoprotectprivacy 41% are tell thatit istoo confusingtouse Changing business Environment 1. The traditional businessenvironmentischangingrapidly 2. Many companiesare lookingoutsideandwithintoshape businessstrategies 3. These activities include private electronic connections to customers,suppliers,distributors,industrygroupsetc 4. The I-superhighwaywillexpandthistrendsothatit allow businesstoexchange information.

14. 14 | P a g e E-Commerce and the retail Industry 1. Conditionsare changinginthe “new economy”withrespecttothe retail industry 2. Consumersare demandinglowerprices,betterquality,alarge selectionof in-seasongoods. 3. Retailersare fillingtheirorderbyslashingback-office costs,reducingprofitmargins,reducingcycle times. buyingmore wiselyandmakinghuge investmentsintechnology 4. Retailersare inthe immediate line of fire andwere firsttobearthe bruntof cost cutting Marketing and E-Commerce 1. E-commerce isforcingcompaniestorethinkthe existingwaysof doingtargetmarketingandevenevent marketing. 2. Interactive marketingisinelectronicmarketsviainteractivemultimediacatalogs 3. Users findmovingimagesmore appealingthanstill image andlisteningmore appealingthanreading texton a screen 4. Consumerinformationservicesare anew type of catalog business Inventory Management and Organizational Applications 1. Withbordersopeningupandcompaniesfacingstiff global competition 2. Adaptationwouldinclude movingtocomputerized,“paperless”operationstoreduce 3. Once targetedbusinessprocessisinventorymanagement,solutionsforthese processesgobydifferent names

15. 15 | P a g e 4. In manufacturingindustrythey’re knownasjust-in-time inventorysystems,inthe retail asquick response programs,andintransportationindustry asconsignmenttrackingsystems Just-in-Time (JIT) Manufacturing 1. It isviewedasan integratedmanagementsystemconsistingof anumberof differentmanagement practicesdependentonthe characteristicsof specificplants 2. The firstprinciple iseliminationof all waste (time,materials,labour&equipment) 3. The followingmanagementpracticesare focusedfactory,reducedset-uptimes,grouptechnology,total productive maintenance,multifunctionemployees,uniformworkloads,ITpurchasing,kanbantotal quality control & qualitycircles Quick Response Retailing (QR) 1. It isa versionof JITpurchasingtailoredforretailing 2. To reduce the riskof beingof outof stock,retailersare implementingQRsystems 3. It providesfora flexible response toproductorderingandlowerscostlyinventorylevels 4. QR retailingfocusesonmarketresponsivenesswhilemaintaininglow levelsof stocks 5. It createsa closedloopconsistingof retailer,vendor,&consumerchain,&asconsumersmake purchasesthe vendorordersnewdeliveriesfromthe retailerthroughitscomputernetwork Supply Chain Management 1. QR and JIT addressonlypartof the overall picture 2. SupplyChainManagement(SCM) isalsocalled“extending”,whichmeansintegratingthe internal and external partnerson the supplyandprocesschainstoget raw materialstothe manufacturerandfinished productsto the consumer

16. 16 | P a g e 3. It includesfollowingfunctions Suppliermanagement:The goal istoreduce the numberof suppliersandgetthemtopartners Inventorymanagement:The goal isto shortenthe order-ship-bill cycle.Whenamajorityof partnersare electronicallylinked,informationfaxedormailed Distributionmanagement:The goal isto move documents(accurate data) relatedtoshipping Channel management:The goal isto quicklydisseminate informationaboutchangingoperational conditions ( technical,product,andpricinginformation) totradingpartners Paymentmanagement:The goal istolinkcompanyandthe suppliersanddistributorssothat paymentscanbe sentandreceivedelectronically Financial management:The goal isto enable global companiestomanage theirmoneyinvariousforeign exchange accounts Salesforce productivity:The goal istoimprove the communicationflow of informationamongthe sales,customer&productionfunctions In sum,the supplychainmanagementprocessincreasinglydependsonelectronicmarkets Work group Collaboration Applications: 1. A internetwork thatenableseasyandinexpensive connectionof variousorganizational segments 2. It isto improve communicationsandinformationsharingandtogatherand analyze competitive data inreal-time 3. Videoconferencing,documentsharingandmultimediae-mail,are expectedtoreduce travel and encourage telecommuting 4. Improvesthe distributionchannelfordocumentsandrecordstosuppliers,collaboratorsand distributors

17. 17 | P a g e Unit- II CONSUMER-ORIENTED APLLICATIONS • The wide range of applicationsenvisionedforthe consumermarketplace canbe broadlyclassifiedinto: (i) Entertainment (ii) Financial ServicesandInformation (iii) Essential Services (iv) Educationand Training ConsumerLife-StyleNeeds ComplementaryMultimediaServices • Entertainment Moviesondemand,videocataloging,interactive Ads, Multi-usergames,on-line discussions. • Financial Servicesand Home Banking,Financial services,Information, Financial news. • Essential Services Home Shopping,ElectronicCatalogs,telemedicine,remotediagnostics. • Educationand Training Interactive education,multiusergames,video conferencing,on-line databases. 1. Personal Finance andHome BankingManagement (i) Basic Services (ii) IntermediateServices (iii) Advancedservices 2. Home Shopping (i) Television-BasedShopping (ii) Catalog-BasedShopping 3. Home Entertainment

18. 18 | P a g e (i) Size of the Home EntertainmentMarket (ii) Impact of the Home EntertainmentonTraditionalIndustries4.Microtransactionsof Information 1. Personal Finance and Home Banking Management: • The newesttechnologiesare directdepositof payroll,on-line bill paymentandtelephonetransfers • The technologyforpayingbills,whetherbycomputerortelephone,isinfinitelymore sophisticatedthan anythingonthe marketa fewyearsago • In 1980s were the daysof “stone age” technologybecause of technologychoicesforaccessingservices were limited • For home banking,greaterdemandsonconsumersandexpandingneedforinformation,it’sservicesare oftencategorizedasbasic,intermediateandadvanced (i) Basic services • These are relatedtopersonal finance • The evolutionof ATMmachinesfromlive tellersandnow tohome banking • The ATM networkhaswithbanksand theirassociationsbeingthe routersandthe ATMmachinesbeingthe heterogeneouscomputersonthe network. • Thisinteroperablenetworkof ATMshas createdan interface betweencustomerandbankthat changedthe competitivedynamicsof the industry.Seeinnextfigure • IncreasedATMusage anddecrease intellertransactions • The future of home bankinglieswithPC’s

19. 19 | P a g e (ii) Intermediate Services • The problemwithhome bankingin1980 is,it isexpensive service thatrequiresaPC,a modemand special software • As the equipmentbecomeslessexpensive andasbankoffersbroaderservices,homebankingdevelop intoa comprehensivepackage thatcouldevenincludeasinsurance entertainment • Considerthe computerizedon-line bill-paymentsystem • It neverforgetstorecorda paymentandkeepstrackof useraccount number,name,amountandthe date and we usedto instructwithpaymentinstructions.See in Fig;

20. 20 | P a g e (iii)Advanced Services • The goal of advancedseriesistooffertheiron-linecustomersacomplete portfolioof life,home,and auto insurance alongwithmutual funds,pensionplans,home financing,andotherfinancial products • The Figure explainsthe range of servicesthatmaywell be offeredbybanksinfuture • The servic3esrange fromon-line shoppingtoreal-timefinancial informationfromanywhere inthe world • In short,home bankingallowsconsumerstoavoidlonglinesandgivesflexibility 2. Home Shopping: • It isalreadyinwide use. • Thisenable acustomerto do online shopping

21. 21 | P a g e (i) Television-Based Shopping: • It islaunchedin1977 by the Home ShoppingNetwork(HSN). • It providesavarietyof goodsrangingfromcollectibles,clothing,smallelectronics,house wares,jewelry, and computers. • WhenHSN startedinFloridain1977, itmainlysoldfactoryoverrunsanddiscontinueditems • It worksas, the customerusesherremote control at shopdifferentchannelswithtouchof button.At thistime,cable shoppingchannelsare nottrulyinteractive (ii) Catalog-Based Shopping • In thisthe customeridentifiesthe variouscatalogsthatfitcertainparameterssuchassafety,price,and quality • The on-line catalogbusinessconsistsof brochures,CD-ROMcatalogs,and on-line interactive catalogs • Currently,we are usingthe electronicbrochures 3. Home Entertainment: • It isanotherapplicationfore-commerce • Customercan watchmovie,playgames,on-screencatalogs,suchasTV guide.

22. 22 | P a g e • In Home entertainmentarea,customeristhe control overprogramming • In Table tellsthe,Whatwill be requiredintermsof Television-basedtechnologyforthistelemartto become a reality The Telemart: Present and Future Functions • Compressinganddecoding The transitiontodigital satellite a digital signal(imagesare and cable network headbroad compresstoreduce quantity castinginvolveslinkingthe TV of information) to decodertoreconvertintoan analogsignal • Decodinga scrambled The broadcastingof pay channel signal requiresthe encryptionof the signal onemission&unscrambled • Rapidloadingof program An increase inthe no.of individual on memory interactive servicesispossible onlyif n/w overloadingiskept minimum • Electronicmoneyor Once separated fromthe telephone, card paymentterminal telemartwill needakeyboard up to the TV setin orderto ensure interactivity.The keyboardwill have a paymentconnectionto simplifythe billing process Advanced Services Size of the home Entertainment Market: • Entertainmentservicesare playamajor role ine-commerce • Thispredictionisunderscoredbythe changingtrendsinconsumerbehavior. • It isshowninTable Impact of Home entertainment on traditional industries: • Thiswill have devastatingeffectsontheaterbusiness • Economicissuesmightallow theaterstomaintainanimportantrole inthe movie industry • Today average cable bill isapproximately$30 a month

23. 23 | P a g e IndustryEstimatesof consumerExpenditures 1980 ($4.7 bin) 1990 ($31.0 bin) 1993 ($37.8 bin) Theaters 49.0% $2.3 14.5% $4.5 13.2% $5.0 Basic cable 35.0% $1.6 34.5% $10.7 36.9% $13.9 Premiumcable 16.0% $0.8 16.5% $5.1 14.0% $5.3 Home video __ __ 33.8% $10.5 34.8% $13.2 Pay perview __ __ 0.7% $0.2 1.1% $0.4 4. Micro transactions of information: • One change in traditional businessforcedbythe on-lineinformationbusinessisthe creationof a newtransactioncategorycalledsmall-feetransactionsformicroservices • The customerby givingsome informationawayforfree andprovide informationbundlesthatcover the transactionoverhead. • The growth of small-moneytransferscouldfosteraboominother complementaryinformation services • The complexityisalsoincreasedinmicroserviceswhenanactivitynamed,reverificationisentered. • It meanscheckingonthe validityof the transactionafterithas beenapproved Desirable Characteristics ofan Electronic marketplace • Critical massof Buyersandsellers:Togetcritical mass,use electronicmechanisms • Opportunityforindependentevaluationsand forcustomerdialogueanddiscussion:Usersnotonly buyand sell products,theycompare notesonwhohas the bestproductsand whose pricesare outrageous • Negotiationandbargaining:Buyersandsellersneedtoable tohaggle overconditionsof mutual satisfaction,money,terms&conditions,deliverydates&evaluationcriteria • Newproductsand services:Electronicmarketplace isonlysupportfull informationaboutnew services • Seamlessinterface:The tradingishavingpiecesworktogethersothatinformationcanflow seamlessly

24. 24 | P a g e • Resource fordisgruntledbuyers:Itprovide forresolvingdisagreementsbyreturningthe product. Mercantile Process models • Mercantile processesdefineinteractionmodelsbetweenconsumersandmerchantsforonline commerce Mercantile Models from the Consumer's Perspective (i) Pre purchase preparation:The pre purchase preparationphase includesearchanddiscoveryforaset of productsto meetcustomerrequirements (a) The consumerinformationsearchprocess. (b) The Organizational searchprocess. (c) Consumersearchexperiences. (d) Informationbrokers&brokerages. (ii) Purchase consummation:The purchase consummationphase include mercantile protocols (a) Mercantile processusingdigital cash. (b) Mercantile transactionusingcreditcards. (c) Costsof electronicpurchasing. (iii) Postpurchase interaction:The postpurchase interactionphase includescustomerservice &support

25. E COMMERCE SCCE_CSE Page 25 (i) Pre purchase Preparation • The purchase is done bythe buyers,soconsumerscan be categorizedinto3 types • Impulsive buyers,whopurchase productsquickly • Patientbuyers,purchase productsaftermakingsome comparisons • Analytical buyers,whodosubstantial researchbefore makingdecisiontopurchase products,. Marketing researcheshave several types ofpurchasing: • Specificallyplannedpurchases • Generallyplannedpurchases • Reminderpurchase • Entirelyunplannedpurchases The consumer information search process • Informationsearchisdefinedasthe degree of care,perception,&effortdirectedtoward obtainingdataor informationrelatedtothe decisionproblem The Organizational search process

26. E COMMERCE SCCE_CSE Page 26 Organizational searchcanbe viewedasa processthroughwhichan organizationadaptsto such changesinitsexternal environmentasnew suppliers,products,&services. Consumer Search Experiences • The distinctionbetween carryingouta shoppingactivity“toachieve agoal”(utilitarian) as opposedtodoingitbecause “ u love it”(hedonic). Information Brokers and Brokerages • To facilitate betterconsumerandorganizational search,intermediariescalledinformation brokersor brokerages • Informationbrokeragesare neededfor3reasons:Comparisonshopping,reducedsearch costs,and integration (ii) Purchase Consummation • Buyercontacts vendortopurchase • Vendorstatesprice • Buyerand Vendormayor may notengage innegotiation • If satisfied,buyeraskthe paymenttothe vendor • Vendorcontactsbillingservice • Billingservicedecryptsauthorizationandcheckbuyersaccountbalance • Billingservicegivestothe vendortodeliverproduct • Vendordeliversthe goodstobuyer • On receivingthe goods,the buyersignsanddeliversreceipt • At the endof the billingcycle,buyerreceivesalistof transactions

27. E COMMERCE SCCE_CSE Page 27 Mercantile process using Digital Cash • Buyerobtainse-cashfromissuingbank • Buyercontacts sellertopurchase product • Sellerstatesprice • Buyersendse-cashtoseller • Sellercontactshisbankor billingservice toverifythe validityof the cash • Bank givesokaysignal • Sellerdeliversthe producttobuyer • Sellerthentellsbanktomark the e-cashas “used”currency Mercantile Transactions Using Credit Cards • Two majorcomponentscompromise creditcardtransactionsinthisprocess:electronic authorizationand settlement • In retail transaction,athird-partyprocessor(TPP) capturesinformationatthe pointof sale, transmitsthe informationtothe creditcard issuerforauthorization,communicatesa response tothe merchantand electronicallystoresthe informationforsettlementand reporting. • The benefitsof electronicprocessinginclude the reductionincreditlosses,lowermerchant transactioncosts,& fasterconsumercheckout& merchant-to-banksettlement

28. E COMMERCE SCCE_CSE Page 28 A step-by-stepaccountof retail transactionfollows: • Step1:A customerpresentsacreditcard for paymentat a retail location • Step2:The point-of-salesoftwaredirectsthe transactioninformationtothe local network • Step3:Systemverifiesthe source of the transactionandroutesit. • Step4:In this,transactioncountand financial totalsare confirmedbetweenthe terminal and the network • Step5:In this,the systemgathersall completedbatchesandprocessesthe datain preparationforsettlement A merchantclienttakesone of twoforms: • Merchants are charged a flatfee pertransactionforauthorizationanddata capture services The other formof billingallowsmerchantstopaya ”bundled”price forauthorization,data capture,& settlement Cost ofElectronic Purchasing: • Cash seemstobe preferable toelectronicpayments,suchas,on-linedebit,credit,and electroniccheckauthorization • Consumersappeartospendmore whenusingcardsthenwhenspendingcash (iii)Post purchase Interaction • Returnsand claimsare an importantpart of the purchasingprocess • Othercomplex customerservice challengesarise incustomizedretailingare: Inventoryissues:Toserve the customerproperly,acompanyshouldinformacustomerrightaway and if the itemisin stock,a companymust able toassignthat piece tocustomer Database access andcompatibilityissues:Customersshouldgetkindof servicesbyeasyissueslike callingan800 number Customerservice issues:Toclearthe doubtsof customerabout product Mercantile Models from the Merchant's Perspective • To betterunderstanding,itisnecessarytoexamine the ordermanagementcycle (OMC). • The OMC includeseightdistinctactivities.

29. E COMMERCE SCCE_CSE Page 29 • The actual detailsof OMC varyfrom industrytoindustryandalsofor individual productsand services • OMC has genericsteps (i) Orderplanning&Order generation. (ii) Cost estimation&pricing. (iii) Orderreceipt& entry. (iv) Orderselection&prioritization. (v) OrderScheduling (vi) Orderfulfillment&delivery. (vii) Orderbilling&account/paymentmanagement. (viii) Postsalesservice. Order planning & order Generation • Orderplanningleadstoordergeneration. • Ordersare generatedinano. of ways inthe e-commerce environment. • The salesforce broadcastsads (directmarketing),sendspersonalizede-mail tocustomers (coldcalls),orcreatesa WWW page

30. E COMMERCE SCCE_CSE Page 30 Cost Estimation & pricing • Pricingisthe bridge betweencustomerneeds&companycapabilities. • Pricingat the individualorderlevel dependsonunderstandingthe value tothe customerthat isgeneratedbyeachorder,evaluatingthe costof fillingeachorder;&institutingasystem that enablesthe companytoprice eachorder basedonitsvalue & cost Order Receipt & Entry • Afteran acceptable price Quote,the customerentersthe orderreceipt&entryphase of OMC. • Thiswas underthe purviewof departmentsvariouslytitledcustomerservice,orderentry,the inside salesdesk,orcustomerliaison. Order Selection & Prioritization • Customerservice representativesare alsooftenresponsibleforchoosingwhichordersto accept andwhichto decline. Not,all customers’ordersare createdequal;some are betterforthe business. Order Scheduling • In thisphase the prioritizedordersgetslottedintoanactual productionoroperational sequence. • Thistask isdifficultbecause the differentfunctional departments- sales,marketing,,customer service,operations,orproduction- mayhave conflictinggoals,compensationsystems,& organizational imperatives: Productionpeopleseektominimize equipmentchangeovers,while marketing&customerservice repsargue forspecial service forspecial customers. Order Fulfillment & Delivery • In thisactual provisionof the productor service ismade. • It involvesmultiple functionsandlocations. Order Billing & Account/Payment Management • Afterthe orderhas beenfulfilled&delivered,billingisgivenbyfinancestaff.

31. E COMMERCE SCCE_CSE Page 31 • The billingfunctionisdesigned toserve the needsandinterestsof the company,notthe customer. Post sales Service • Thisphase playsan increasinglyimportantrole inall elementsof acompany’sprofitequation: customer,price,&cost. • It can include suchelementsasphysical installationof aproduct,repair& maintenance, customertraining,equipmentupgrading&disposal.

32. Unit- III Types of Electronic Payment Systems • Electronicpaymentsystemsare proliferatinginbanking,retail,healthcare,on-line markets, and evengovernment—infact,anywhere moneyneedstochange hands. • Organizationsare motivatedbythe needtodeliverproductsandservicesmore cost effectivelyandtoprovide ahigherqualityof service tocustomers. • The emergingelectronicpaymenttechnologylabeledelectronicfundstransfer(EFT). • EFT is definedas“anytransferof fundsinitiatedthroughanelectronicterminal,telephonic instrument,orcomputerormagnetictape so as to order,instruct,or authorize afinancial institution EFT can be segmentedintothree broadcategories: • Bankingandfinancial payments – Large-scale orwholesale payments(e.g.,bank-to-banktransfer) – Small-scale orretail payments(e.g.,automatedtellermachines) – Home banking(e.g.,bill payment) • Retailingpayments – CreditCards(e.g.,VISA orMasterCard) – Private label credit/debitcards(e.g.,J.C.PenneyCard) – Charge Cards (e.g.,AmericanExpress • On-line electroniccommerce payments – 1. Token-basedpaymentsystems • Electroniccash(e.g.,DigiCash) • Electronicchecks(e.g.,NetCheque) • Smart cards or debitcards (e.g.,Mondex ElectronicCurrencyCard)) – 2. Creditcard-basedpaymentssystems

33. • EncryptedCreditCards(e.g.,WorldWide Webform-basedencryption) • Third-partyauthorizationnumbers(e.g.,FirstVirtual) 1) Digital Token-Based Electronic Payment Systems Electronictokensare three types: 1. Cash or Real-time • Transactionsare settledwithexchange of electroniccurrency. • Ex: on-line currencyexchange iselectroniccash(e-cash). 2. Debit or Prepaid • Users pay in advance forthe privilege of gettinginformation. • Ex: prepaidpaymentmechanismsare storedinsmartcards and electronicpursesthatstore electronicmoney. 3. Credit or Postpaid • The serverauthenticatesthe customersandverifieswiththe bankthatfundsare adequate before purchase. • Ex: postpaidmechanismsare credit/debit cards andelectronic checks. Properties ofElectronic Cash: • There are manywaysthat existforimplementingane-cashsystem, all mustincorporate a fewcommonfeatures. • Specifically,e-cashmusthave the followingfourproperties: 1. Monetaryvalue 2. Interoperability 3. Retrievability 4. Security Electronic Cash in Action

34. • ElectronicCashisbasedon cryptographicsystemscalled“digitalsignatures”. • Thismethodinvolvesapairof numerickeys:one forlocking(encoding) andthe otherfor unlocking(decoding).(Throughpublickeyandprivate key). Purchasing E-cash from Currency Servers The purchase of e-cashfroman on-line currencyserver(orbank) involvestwosteps: • Establishmentof anaccount and • Maintainingenoughmoneyinthe accounttobank the purchase. Some customersmightprefertopurchase e-cashwithpapercurrency,eithertomaintainanonymity or because theydon’thave a bankaccount. Using the Digital Currency • Once the tokensare purchased,the e-cashsoftware onthe customer’sPCstoresdigital moneyundersignedbyabank. • The userscan spendthe digital moneyatanyshopacceptinge-cash,withouthavingtoopen an account there or havingtotransmitcreditcard numbers. • As soonas the customerwantsto make a payment,the software collectsthe necessary amountfrom the storedtokens. Electronic Checks • It isanotherform of electronictokens.

35. • In the givenmodel showninfig,buyersmustregisterwiththird-partyaccountserverbefore theyare able towrite electronicchecks. • The account serveracts as a billingservice. • The advantagesare: 1. Theyworkin the same way as traditional checks. 2. These are suitedforclearingmicropayments 3. Theycreate float& availabilityof floatisanimportantforcommerce 4. Financial riskisassumedbythe accountingserver&may resultineasieracceptance Smart Cards & Electronic Payment Systems • Smart cards have beeninexistence since the early1980s andholdpromise forsecure transactionsusingexistinginfrastructure. • Smart cards are creditanddebitcards and othercard productsenhancedwith microprocessorscapable of holdingmore informationthanthe traditional magneticstripe. • The smart card technologyiswidelyusedincountriessuchasFrance,Germany,Japan,and Singapore topay forpublicphone calls,transportation,andshopperloyaltyprograms. Smart cards are basically two types: – Relationship-BasedSmartCreditCards

36. – ElectronicPurses,whichreplace money,are alsoknownasdebitcardsand electronic money. Relationship-Based Smart Credit Cards – It isan enhancementof existingcardsservices&/orthe additionof new servicesthat a financial institutiondeliverstoitscustomersviaa chip-basedcardor otherdevice – These servicesinclude accesstomultiplefinancial accounts,value-addedmarketing programs,or otherinformationcardholders maywantto store on theircard – It includesaccesstomultiple accounts,suchasdebit,credit,cashaccess,bill payment & multiple accessoptionsatmultiple locations Electronic Purses • To replace cash andplace a financial instrumentare racingto introduce “electronicpurses”, wallet-sizedsmartcardsembeddedwithprogrammable microchipsthatstore sumsof money for people touse insteadof cashforeverything • The electronicpurse worksinthe followingmanner: 1. Afterpurse isloadedwithmoneyatan ATM, itcan be usedto payfor candy ina vending machine witha card reader. 2. It verifiescardisauthentic& ithas enoughmoney,the value isdeductedfrombalance onthe card & addedtoan e-cash& remainingbalance isdisplayedbythe vendingmachine. 2) Credit Card-Based Electronic Payment Systems Paymentcardsare all typesof plasticcards that consumersuse tomake purchases: – Creditcards • Such as a Visaora MasterCard,has a presetspendinglimitbasedonthe user’s creditlimit. – Debitcards • Removesthe amountof the charge fromthe cardholder’saccountand transfers it to the seller’sbank. – Charge cards • Such as one fromAmericanExpress,carriesnopresetspendinglimit.

37. Advantages: – Paymentcardsprovide fraudprotection. – Theyhave worldwide acceptance (nearly!). – Theyare goodfor online transactions. Disadvantages: – Paymentcard service companiescharge merchantsper-transactionfeesandmonthly processingfees. Payment Acceptance and Processing • Openloop(suchas VISA) andclosedloop(suchasAmericanExpress) systemswillacceptand processpaymentcards. • A merchantbankor acquiringbankis a bank thatdoesbusinesswithmerchantswhowantto accept paymentcards. • Software packagedwithyourelectroniccommerce software canhandle paymentcard processingautomatically. • Electroniccashis a general termthatdescribesthe attemptsof several companiestocreate value storage andexchange systemthatoperatesonline inmuchthe same waythat government-issuedcurrencyoperatesinthe physical world. • Concernsaboutelectronicpaymentmethodsinclude: – Privacy – Security

38. – Independence – Portability – Convenience Electronic Cash Issues • Primaryadvantage iswithpurchase of itemslessthan£5 • Creditcard transactionfeesmake small purchasesunprofitable • FacilitatesMicropayments –eg foritemscostinglessthan£1 • Must be anonymous, justlikeregularcurrency • Safeguardsmustbe inplace to preventcounterfeiting • Must be independentandfreelytransferable regardlessof nationalityorstorage mechanism Electronic Cash Storage • Two methods – On-line • Individual doesnothave possessionpersonallyof electroniccash • Trustedthirdparty,e.g.e-banking,bankholdscustomers’cashaccounts – Off-line • Customerholdscashon smart card or electronicwallet • Fraud anddouble spendingrequire tamper-proof encryption Risks in Electronic Payment systems • Customer'srisks – Stolencredentialsorpassword – Dishonestmerchant – Disputesovertransaction

39. – Inappropriate use of transactiondetails • Merchant’srisk – Forgedor copiedinstruments – Disputedcharges – Insufficientfundsincustomer’saccount – Unauthorizedredistributionof purchaseditems • Main issue:Secure paymentscheme Electronic payments Issues • Secure transferacrossinternet • Highreliability:nosingle failurepoint • Atomictransactions • Anonymityof buyer • Economicand computational efficiency:allow micropayments • Flexibility:acrossdifferentmethods • Scalabilityinnumberof serversandusers Designing Electronic Payment systems It includesseveral factors: • Privacy. A userexpectstotrust ina secure system;justas a telephoneisasafe • Security. A secure systemverifiesthe identityof two-partytransactionsthrough“user authentication”&reservesflexibilitytorestrictinformation/servicesthroughaccesscontrol • Intuitive interfaces.The paymentinterface mustbe aseasyto use as a telephone. • Database integration.Withhome banking,forex,acustomerwantsto playwithall his accounts. • Brokers. A “networkbanker”-someonetobrokergoods& services,settle conflicts,& ‘inancial transactionselectronically-mustbe inplace • Pricing. One fundamental issue ishow toprice paymentsystemservices.Fore.g.,fromcash to bankpayments,frompaper-basedtoe-cash.The problemispotentialwaste of resources.

40. • Standards. Withoutstandards,the weldingof differentpaymentusersintodifferent networks&differentsystemsisimpossible. Unit- IV Electronic Data Interchange • ElectronicData Interchange (EDI) - interposescommunicationof businessinformationin standardizedelectronicform • Priorto EDI, businessdependedonpostal andphone systemsthatrestrictedcommunication to those fewhoursof the workdaythatoverlap betweentimezones Why EDI • Reductionintransactioncosts • Fostercloserrelationshipsbetweentradingpartners EDI & Electronic Commerce • Electroniccommerce includesEDI& much more

41. • EDI forgesboundarylessrelationshipsbyimprovinginterchange of informationbetween tradingpartners,suppliers,&customers EDI & Electronic Commerce • Electroniccommerce includesEDI& much more • EDI forgesboundarylessrelationshipsbyimprovinginterchange of informationbetween tradingpartners,suppliers,&customers Benefits ofEDI • Cost & time savings,Speed,Accuracy,Security,SystemIntegration,Just-In-Time Support. • Reducedpaper-basedsystems,i.e.recordmaintenance,space,paper,postagecosts • Improvedproblemresolution&customerservice • Expandedcustomer/supplierbase orsupplierswithnoEDIprogramlose business EDI layered architecture • Semantic(orapplication) layer • Standardstranslationlayer • Packing(ortransport) layer • Physical networkinfrastructure layer EDI semantic layer: • Describesthe businessapplication • Procurementexample

42. – Requestsforquotes – Price quotes – Purchase orders – Acknowledgments – Invoices • Specifictocompany& software used Standards translation: • Specifiesbusinessformstructure sothatinformationcanbe exchanged • Two competingstandards – AmericanNational StandardsInstitute(ANSI)X12 – EDIFACTdevelopedbyUN/ECE,WorkingPartyfor the Facilitationof International Trade Procedures EDI transport layer • How the businessformissent,e.g.post,UPS,fax • Increasingly,e-mailisthe carrier• DifferentiatingEDIfrome-mail – Emphasisonautomation – EDI has certainlegal status Physical network infrastructure layer • Dial-uplines,Internet,value-addednetwork,etc. EDI in Action • The fig showsthe informationflow whenpaperdocumentsare shuffledbetween organizationsviathe mailroom • Whenthe buyersendsa purchase order,thenrelevantdata extracted&recordedona hard copy. • Thishard copy isforwardedtoseveral steps,atlastmanuallyenteredintosystembythe data entryoperators

43. • Thisprocessis somewhatoverheadinlaborcosts& time delays. EDI in Action • InformationflowwithEDIare as follows: 1. Buyersendspurchase orderto sellercomputer 2. Sellersendspurchase orderconfirmationtobuyer 3. Sellersendsbookingrequesttotransportcompany 4. Transport companysendsbookingconfirmationtoseller 5. Sellersendsadvance shipnoticetobuyer 6. Transport companysendsstatustoseller 7. BuyersendsReceiptadvice toseller 8. Sellersendsinvoice tobuyer 9. Buyersendspaymenttoseller EDI as a fast,inexpensive &safe method

44. Benefits ofEDI • Cost & time savings,Speed,Accuracy,Security,SystemIntegration,Just-In-Time Support. • Reducedpaper-basedsystems,i.e.recordmaintenance,space,paper,postagecosts • Improvedproblemresolution&customerservice • Expandedcustomer/supplierbase orsupplierswithnoEDIprogramlose business EDI Applications in Business Four differentscenariosinindustriesthatuse EDIextensively: 1. International orcross-bordertrade 2. Electronicfundstransfer 3. Healthcare EDI for insurance claimsprocessing 4. Manufacturing& retail procurement 5. International or cross-border trade • EDI has alwaysbeenverycloselylinkedwithinternationaltrade. • Trade efficiency,whichallowsfaster,simpler,broader&lesscostlytransactions Role ofEDI in international trade • EDI facilitatesthe smoothflow of information

45. • It reducespaperwork • EDI benefitsforinternationaltrade are 1. Reducedtransactionexpenditures 2. Quickermovementof imported&exportedgoods 3. Improvedcustomerservice through“track& trace” programs 4. Fastercustomsclearance & reducedopportunitiesforcorruption,ahuge problemintrade 2. Interbank Electronic Funds Transfer (EFT) • EFTS is credittransfersbetweenbankswherefundsflowdirectlyfromthe payer’sbanktothe payee’sbank. • The two biggestfundstransferservicesinthe UnitedStatesare the Federal Reserve’ssystem, Fedwire,& the ClearingHouse InterbankPaymentsSystem(CHIPS)of the New Yorkclearing house Automated Clearinghouse (ACH) Transfers • ACH transfersare usedto processhighvolumesof relativelysmall-dollarpaymentsfor settlementinone ortwo businessdays • It providesservices:preauthorizeddebits,suchasrepetitive bill payments;& consumerinitiatedpayments. 3. Health care EDI for insurance EDI • Providinggood&affordable healthcare isa universal problem • EDI is becomingapermanentfixtureinbothinsurance &healthcare industriesasmedical provider,patients,&payers • Electronicclaimprocessingisquick&reducesthe administrative costsof healthcare. • UsingEDI software,serviceprovidersprepare the forms&submitclaimsviacommunication linestothe value-addednetworkservice provider • The company theneditssorts& distributesformstothe payer.If necessary,the insurance companycan electronicallyroute transactionstoathird-partyforprice evaluation • Claimssubmissionalsoreceivesreportsregardingclaimstatus&requestforadditional information

46. 4. Manufacturing & retail procurement using EDI • These are heavyusersof EDI • In manufacturing,EDIisusedto supportjust-in-time. • In retailing,EDIisusedtosupportquickresponse Just-In-Time & EDI • CompaniesusingJIT&EDI calculateshow manypartsare neededeachdaybasedonthe productionschedule &electronicallytransmitorders. • Deliveryhastobe responsive,oritwill costtoo muchin money& time. • Gettingdata to suppliersquickly • A majorbenefitof JIT& EDI is a streamlinedcashflow. Quick Response & EDI • For the customer,QR meansbetterservice &availabilityof awiderrange of products • For the retailer&supplier,QRmaymeansurvival ina competitivemarketplace • Much focus of QR is inreductionof leadtimesusingevent-drivenEDI. • In QR, EDI documentsinclude purchaseorders,shippingnotices,invoices,inventoryposition, catalogs,& order status EDI: Legal, Security, & Privacy Issues Legal Status ofEDI Messages • To understandthe legal framework,let’stake alookonthree modesof communicationtypes: Instantaneouscommunication,delayedcommunicationviathe U.S.Postal Service (USPS),& delayedcommunicationvianon-USPScouriers; 1. Instantaneous.If the partiesare face toface or use an instantaneouscommunicationmedium such as the telephone 2. Delayed(USPS).The “mailboxrule”providesthatanacceptance communicatedviaUSPSmail iseffectivelywhendispatched 3. Delayed(non-USPS).Acceptancestransmittedviatelegram, mailgram, &electronicmessages, are communicated&operable uponreceipt.

47. Digital Signatures & EDI • Digital signaturesmightbe time-stampedordigitallynotarizedtoestablishdates&times • If digital signaturesare toreplace handwrittensignatures,theymusthave the same legal statusas handwrittensignatures. • It providesameansfora thirdparty to verifythatnotarizedobjectisauthentic. EDI & Electronic Commerce • Newtypesof EDI are traditional EDI& openEDI Traditional EDI • It replacesthe paperformswithalmoststrictone-to-onemappingsbetweenpartsof a paper formto fieldsof electronicformscalledtransactionsets. • It coverstwobasic businessareas: 1. Trade data Interchange (TDI) encompassestransactionssuchaspurchase orders,invoice & acknowledgements. 2. ElectronicFundsTransfer(EFT) isthe automatictransferof fundsamong banks& other organizations • It isdividedinto2camps: oldEDI & new EDI. • OldEDI is a termcreatedby those workingonthe nextgenerationof EDIstandardsinorder to differentiatebetweenthe present&the future. Old EDI • Automatingthe exchange of informationpertinenttobusinessactivity • It isreferredasthe current EDI-standardizationprocesswhere itallowseverycompanyto choose itsown,unique,proprietaryversion NewEDI • It isrefocusingof the standardizationprocess. • In this,the structure of the interchangesisdeterminedbythe programmerwhowritesa program. • It removeslongstandardizationprocess.

48. Open EDI • It isa businessprocedurethatenablese-commerce tooccurbetweenorganizationswhere the interactionisof shortduration. • It isprocessof doingEDI withoutthe upfronttradingpartneragreementthatiscurrently signedbythe tradingpartners • The goal isto sustainad hoc businessorshort-termtradingrelationshipsusingsimplerlegal codes. • It isa lawof contract withinthe contextof e-commerce wheretransactionsare notrepeated overlongperiodof time. Standardization & EDI Standards translation • Specifiesbusinessformstructure sothatinformationcanbe exchanged • Two competingstandards – AmericanNational StandardsInstitute (ANSI)X12 – EDIFACTdevelopedbyUN/ECE,WorkingPartyfor the Facilitationof International Trade Procedures Structure of EDI transactions – Transactionsetis equivalenttoabusinessdocument,suchasa purchase order – Data Segmentsare logical groupsof data elementsthattogetherconveyinformation – Data elementsare individual fields,suchaspurchase order no. Comparison ofEDIFACT & X.12 Standards • These are comprisedof stringsof data elementscalledsegments. • A transactionsetisa setof segmentsorderedasspecifiedbythe standard. • ANSIstandardsrequire eachelementtohave averyspecificname,suchas orderdate or invoice date. • EDIFACTsegments,allowformultiuse elements,suchasdate.

49. • EDIFACThas fewerdataelements&segments&onlyone beginningsegment(header),butit has more composites. • It isan ever-evolvingplatform EDI Software Implementation • EDI software has4 layers: 1. Businessapplication 2. Internal formatconversion 3. EDI Translator 4. EDI envelope fordocumentmessaging • These 4 layerspackage the information& senditoverthe value-addednetworktothe target business,whichthenreversesthe processtoobtainthe original information EDI Business Application Layer 1. It createsa document,aninvoice. 2. SendstoEDI translator,reformatsthe invoice intoanEDI standard.3. If there are on the same type of computer,the datamove faster EDI Envelope for Message Transport

50. The X.400 & X.435 Envelopes • The X.400 standard wasmeantto the universal answertoe-mail interconnectivity • It promisesmuch& to date,deliverslittle. • The work on X.400 beganin1980 • It isthe openstandardformail interchange • The standard existsin3 versions:1984, 1988, & 1992. EDI Software Implementation • The X.435 insertsa special fieldinanX.400 envelopetoidentifyanEDImessage • It includesdataencryption;integrity;notificationof message delivery&nondelivery;& nonrepudiationof delivery • It issecure,reliable waytosendEDI& accompanyingfileswithinthe same message. • Purchase orders,invoices,drawings,e-mail- all couldbe sentwithend-to-end acknowledgmentof message receipt. Value-Added Networks (VANs) • A VAN isa communicationnetworkthattypicallyexchangesEDImessagesamongtrading partners. • It providesservices,includingholdingmessagesin“electronicmailboxes”,interfacingwith otherVANs • Disadvantage isEDI-enablingVANsisthattheyare slow & high-priced,chargingbythe no.of characters transmitted

51. Internet-Based EDI Several factorsmake internetuseful forEDI: • Flat-pricingthatisnotdependentonthe amountof informationtransferred • Cheapaccesswithlowcost of connection- oftenaflatmonthlyfee forleasedline 0rdialup access • Commonmail standards& provennetworking &interoperable systems • Security--public-keyencryptiontechniquesare beingincorporatedinvariouselectronicmail systems Unit-V INTRAORGANIZATIONAL ELECTRONICCOMMERCE Internal commerce isthe applicationof electroniccommerce toprocessesoroperations. Specifically,we defineinternal commerce asusingmethodsandpertinenttechnologiesfor supportinginternal businessprocessesbetweenindividuals,departments,and collaborating organizations. It isof twotypes 1. Private commerce 2. Publiccommerce In a general sense,the termInformationSystem(IS) referstoa systemof people,datarecords and activitiesthatprocessthe dataand informationinanorganization,anditincludesthe organization'smanual andautomatedprocesses. In a narrow sense,the term information system(orcomputer-basedinformationsystem) refers to the specificapplicationsoftwarethatisusedto store data recordsina computersystem and automatessome of the information-processingactivitiesof the organization.

52. These forcesare commandinga rethinkingof the importance of the networks-computersand communicationsandtheirrole inthe betterutilizationof corporate information in operational andanalytical decisionmaking. E-COMMERCE 5 Information architecture (IA) isthe art of expressingamodel orconceptof information usedinactivitiesthatrequire explicitdetailsof complex systems. Amongthese activitiesare librarysystems,contentManagementSystems,webdevelopment, userinteractions,database development,programming,technical writing,enterprise architecture,andcritical systemsoftware design. Most definitionshave common qualities:astructural designof sharedenvironments,methodsof organizingandlabellingwebsites,intranets,andonline communities,andwaysof bringingthe principlesof designandarchitecture tothe digital landscape What Is Cross-functional Management? Cross-functional management (CFM) managesbusinessprocessesacrossthe traditional boundariesof the functional areas. CFM relatestocoordinatingandsneeringthe activitiesof differentunitsforrealizingthe super ordinate cross-functional goalsandpolicydeployment. It isconcernedwithbuildingabettersystemforachievingforachievingsuchcrossfunctional goalsas innovation,quality,cost,anddelivery. public electronic commerce EDI global customers EDI public electronic commerce Corporate secure internet managementsales production Customerservice R&D engineeringAccounting and finance Marketing& advertising Globalsuppliers The information superhighwaybanks firewall

53. MACROFORCES AND INTERNAL COMMERCE Macro forcesand internal commerce highlightsthe changestakingplace inorganization structure and exploreshowtechnologyandothereconomicforcesare moldingarrangements withinfirms. The commonfocusinmost of these modernmanagementparticlesisthe use of technologyfor improvingefficiencyandeliminatingwasteful tasksinbusinessoperations. Efficientoperationsof the macroforcesand internal commerce are: Total qualitymanagement Businessprocessimprovementorbusinessprocessreengineering. The wordsimprovementandreengineeringare oftenusedinterchangeably,creating confusion. Althoughthe goal of these twoare same I.e.productivitygains,costsavings,qualityand service improvements,cycle-time reduction. One mainreasonfor reengineeringistobettercomplete inglobal markets. Global Markets: Definition and Characteristics Definition: The OxfordUniversityPressdefines global marketing as“marketing”onaworldwide scale reconcilingortakingcommercial advantage of global operationaldifferences,similaritiesand opportunitiesinordertomeetglobal objectives.” Global marketing: Whena companybecomesaglobal marketer,itviewsthe worldasone marketandcreates productsthat will onlyrequire weekstofitintoanyregional marketplace.Marketingdecisions are made by consultingwithmarketersinall the countriesthatwill be affected.The goal isto sell the same thingthe same wayeverywhere. The Four elementsof global marketingof marketing: Product: A global companyisone that can create a single productandonlyhave totweakelementsfor differentmarkets.Forexamplecoca-cola usestwoformulas(one withsugar,one withcorn syrup) forall markets. Price:

54. Price will alwaysvaryfrommarketto market.Price isaffectedbymanyvariables:costof productdevelopment(producedlocallyorimported),costof ingredients,costof delivery (transportation,tariffs,etc.),andmuchmore. Placement: How the product isdistributedisalsoacountry-by-countrydecisioninfluencedbyhow the competitionisbeingofferedtothe targetmarket.UsingCoca-Colaas an example again,not all culturesuse vendingmachines. Promotion: Afterproductresearch,developmentandcreation,promotionisgenerallythe largestline item ina global company’smarketingbudget.Atthisstage of a company’sdevelopment, integratedmarketingisthe goal. The global corporationseekstoreduce costs,minimize redundanciesinpersonnel andwork, maximize speedof implementation,andtospeakwithone voice. Global marketing Advantages and Disadvantages Advantages: Economiesof scale inproductionanddistribution Powerandscope Consistencyinbrandimage Abilitytoleveragegoodideasquicklyandefficiently Uniformityof marketingpractices Helpsto establishrelationshipsoutside of the "political arena“ Disadvantages: Differencesinconsumerneeds,wants,andusage patternsforproducts Differencesinconsumerresponse tomarketingmix elements. Differencesinbrandandproduct developmentandthe competitive environment. Differencesinadministrative proceduresandDifferencesinproductplacement. Marketing Research:

55. It involvesthe identification,collection,analysis, and dissemination of information.Eachphase of thisprocessisimportant. Finally,the findings,implicationsandrecommendationsare providedinaformatthat allows the informationtobe usedformanagementdecisionmakingandtobe acted upondirectly. It shouldbe emphasizedthatmarketingresearchisconductedtoassistmanagementin decisionmakingandisnot:a meansor an endin itself. Marketing Research Characteristics: First,marketingresearch is systematic.Thussystematicplanningisrequiredatall the stagesof the marketingresearchprocess. The proceduresfollowedateachstage are methodologicallysound,well documented,and,as much as possible,plannedinadvance. Marketingresearchusesthe scientificmethodinthatdata are collectedandanalyzedtotest priornotionsor hypotheses. Marketingresearchis objective.Itattemptstoprovide accurate informationthatreflectsatrue state of affairs.Itshouldbe conductedimpartially. An organizational structure isa mostlyhierarchical conceptof subordinationof entitiesthat collaborate andcontribute toserve one commonaim. Organizationsare a numberof clusteredentities.The structure of anorganization isusuallyset up inone of a varietyof styles,dependentontheirobjectivesandambience. Organizational structure allowsthe expressedallocationof responsibilitiesfordifferent functionsandprocessestodifferententities. Commonsuccesscriteriafororganizational structuresare: -Decentralizedreporting -Flathierarchy -Hightransientspeed -Hightransparency Vertical Organization:

56. Hierarchicallystructuredorganizationwhere all managementactivitiesare controlledbya centralizedmanagementstaff. Vertical organizationhastwoproblems: First,it createsboundariesthatdiscourage employeesindifferentdepartmentsfrom interactingwithone another. Second,departmental goalsare typicallysetinaway thatcouldcause frictionamong departments. A vertical marketisa groupof similarbusinessesandcustomerswhichengageintrade based on specificandspecializedneeds. An example of thissortof marketisthe marketfor point-of-saleterminals,whichare often designedspecificallyforsimilarcustomersandare not available forpurchase tothe general public. A vertical marketisa marketwhichmeetsthe needsof aparticularindustry:forexample,a piece of equipmentusedonlybysemiconductormanufacturers.Itisalsoknownasa niche market. Vertical marketsoftware issoftware aimedataddressingthe needsof anygivenbusiness withinadiscerniblevertical market. Horizontal organization: A horizontal market isa marketwhichmeetsagivenneedof a wide varietyof industries, rather thana specificone. Examples In technology,horizontal marketsconsistof customersthatshare a commonneedthatexistsin manyor all industries. For example,customersthatneedtopurchase computersecurityservicesorsoftware existin such variedindustriesasfinance,healthcare,government,etc. Horizontal marketingparticipantsoftenattempttomeetenoughof the differentneedsof vertical marketstogaina presence inthe vertical market. An example could be software that manages services in hotels - amenities solutions. Vertical organization Comparison with horizontal organization:

57. A vertical marketisa marketwhichmeetsthe needsof aparticularindustry:forexample,a piece of equipmentusedonlybysemiconductormanufacturers. A horizontal marketisamarket whichmeetsagivenneedof awide varietyof industries, rather thana specificone:forexample,wordprocessingsoftware. Newforms of organizational structure: Two newformsof organizational structuresare: Prominent-virtual organizational structure: In recentyears,virtual enterpriseshave gainedmuchattentionasmore and more firmsfrom computerchipmanufacturingtoaircraft manufacturing. Virtual organizationisdefinedasbeingcloselycoupledupstreamwithitssuppliersand downstreamwithitscustomers. Virtual organizationhasbeenvariouslyreferredtoas networkorganizations,organicnetworks, hybridnetworksandvalue-addingpartnership. Brokerages organizational structure: The maingoal of electronicbrokeragesorganizationistoincrease the efficiencyof the internal marketplace. Internal marketsare beginningtoappearnotonlyincorporationsbuteveninnonbusiness institutionslike the government. Theyare createdinside organizations,allowingfirms,suppliers,governmentagenciesto meetthe newchallengesof the fast-changingenvironment. Types of electronic brokerages in internal markets: internal markets customer order delivery shipping Logistics & SCM brokerages Order management & financial accounting Production brokerages Manufacturing planning and scheduling brokerages Design brokerages customer customer customer customer

58. E-COMMERCE 24 WORK FLOWAUTOMATION AND COORDINATION In lastdecade,a visionof speedinguporautomatingroutine businesstaskshascome tobe knownas “work-flow automation. Thisvisionhasitsroot in the inventionof the assemblyline andthe applicationof Taylor's scientificmanagementprinciples. Today,a similartrendisemerginginthe automationof knowledge-basedbusinessprocesses calledwork-flowautomation. The goal of work-flowautomationistooffermore timely,cost-effective,andintegratedwaysto make decisions. Typically,work-flowsare decomposedintostepsortasks,whichare taskoriented. Work-flowscanbe simple orcomplex. Simple work-flowstypicallyinvolve one ortwostepsortasks. Anotherwayof lookingatwork-flow istodetermine the amountof cross-functional activity. In otherwords,companiesmustadoptanintegratedprocessview of all the businesselements Organizational integrationisextremelycomplex andtypicallyinvolvesthree steps Improvingexistingprocessesbyutilizingtechnologywhere appropriate. Integrate acrossthe businessfunctionofferidentifyingthe informationneedsforeach process. Integratingbusinessfunctions,applicationprograminterface,anddatabase across departmentsandgroups. Complex work-flowsinvolve several otherwork-flows,some of whichExecutessimultaneously. Work-FlowCoordination: The keyelementof market-drivenbusinessisthe coordinationof tasksandotherresources throughoutthe companyto create value forcustomer. To thisend,effectivecompanieshave developedhorizontal structuresaroundsmall multifunctional teamsthat canmove more quicklyandeasilythanbusinessesthatuse the traditional function-by-function,sequential approach.

59. Some of the simplestwork-flow coordinationtoolsare electronicformsroutingapplications such as lotusnotes. As the numberof partiesinthe workflow increases,goodcoordinationbecomescrucial. Work-flow related technologies: Technologymustbe the “engine”fordrivingthe initiativestostreamline andtransform businessinteractions. Large organizationsare realizingthattheyhave a middle-managementofferall the drawn sizingandreorganizationof fastfew years. Pressuresformore comprehensivework-flowsystemsare buildingrapidly. Work-flowsystemare limitedtofactorylike workprocess. Middleware is maturing: By thisusersor third-partyprovidersneedtolearnhow todevelopwork-flow applications withinmiddlewareenvironment. Organizational memory is becoming practical: The newtoolsformemorybecomingadvancingtowardswhatcanbe calledthe “corporate digital library”. CUSTOMIZATION ANDINTERNAL COMMERCE Technologyistransformingconsumerchoices,whichinturntransformthe dynamicsof the marketplace andorganizationsthemselves. Technologyembodiesadaptability,programmability,flexibility,andotherqualities so essential forcustomization. Customizationisexplainedas:

60. Mass customization,inmarketing,manufacturing,andmanagement,isthe use of flexible computer-aidedmanufacturingsystemstoproduce customoutput. Those systemscombine the lowunitcostsof massproductionprocesseswiththe flexibilityof individualcustomization "Mass Customization"isthe newfrontierinbusinesscompetitionforbothmanufacturingand service industries. Implementation: Many implementationsof masscustomizationare operational today,suchassoftwarebased productconfigurationswhichmake itpossible toaddand/orchange functionalitiesof acore productor to buildfullycustomenclosuresfromscratch. Companieswhichhave succeededwithmass-customizationbusinessmodelstendtosupply purelyelectronicproducts. However,these are nottrue "masscustomizers"inthe original sense,since theydonotoffer an alternative tomassproductionof material goods. Four types ofmass customization: Collaborative customization- Firmstalkto individualcustomerstodeterminethe precise productofferingthatbestservesthe customer'sneeds. Adaptive customization- Firmsproduce a standardizedproduct, butthisproductis customizable inthe handsof the end-user. Transparent customization- Firmsprovide individualcustomerswithuniqueproducts, withoutexplicitlytellingthemthatthe productsare customized. Cosmetic customization- Firmsproduce a standardizedphysical product,butmarketitto differentcustomersinuniqueways. Most of the writtenmaterialsandthinkingaboutcustomizationhasneglectedtechnology. It has beenaboutmanagementanddesignof workprocesses. Today technologyissopervasive thatitisvirtuallyimpossible tomake cleardistributions amongmanagement,designof work,andtechnologyinalmostall formsof businessand industry. Technologyhasmovedintoproducts,the workplace,andthe marketwithastonishingspeed and thoroughness.

61. Mass customization,notmassproduction. Today the wallsthatseparatedfunctionsinmanufacturingandservice industriesalikeare beginningtofall like dominoes. Customizationneednotbe usedonlyinthe productionof cars,planes,andothertraditional products. It can alsobe usedfortextilesandclothing. Technologyisalsoenablingnew formsof customizedproductioninapparel industry. What is Supply chain? Consistsof all partiesinvolved,directlyorindirectlyinfulfillingacustomerrequest. SUPPLY CHAIN MANAGEMENT (SCM) Supply chain management (SCM) isthe managementof anetworkof interconnected businessinvolvedinthe ultimateprovisionof productandservice packagesrequiredbyend customers. SupplyChainManagementspansall movementandstorage of raw materials,work-inprocess inventory,andfinishedgoodsfrompoint-of-origintopoint-of-consumption. SupplyChainManagementcanalsoreferto supplychainmanagementsoftware whichistools or modulesusedinexecutingsupplychaintransactions,managingsupplierrelationshipsand controllingassociatedbusinessprocesses. The Management Components ofSCM The literature onbusinessprocessre-engineering,buyer-supplierrelationships,andSCM suggestsvariouspossible componentsthatmustreceive managerialattentionwhen managingsupplyrelationships. Lambertand Cooper(2000) identifiedthe followingcomponentswhich are: -Planningandcontrol -Work structure -Organizationstructure

62. -Productflowfacilitystructure -Informationflow facilitystructure -Managementmethods -Powerandleadershipstructure -Riskand rewardstructure -Culture andattitude Reverse Supply Chain Reverse logisticsisthe processof planning,implementingand controllingthe efficient,effective inboundflowandstorage of secondarygoodsandrelated informationopposite tothe traditional supplychaindirectionforthe purpose of recovering Unit-VI THE CORPORATEDIGITAL LIBRARY DIMENSIONSOFTHE INTERNALELECTRONIC COMMERCE SYSTEM MARKETING A BUSINESSCASE FORA DOCUMENT LIBRARY TYPES OFDIGITAL DOCUMENTS

63. ISSUES BEHIND DOCUMENT INFRASTRUCTURE CORPORATEDATA WAREHOUSES DIMENSIONS OF THE INTERNALELECTRONIC COMMERCE SYSTEM These are the followingdimensionsforinternal electroniccommerce organization: User modeling and interaction: User modelsare interposingbetweenthe userinterface andinformationsourcestofilterthe available informationaccordingtothe needsof the taskand user. It associateswitheachtaskor eachpersonisa useragentor setof user agents. Tasks of useragentsare: - Maintainingof model &currentstate of the task - Determiningof informationforeachstepof the task - Appropriate combiningof informationwithuser. Addressingthe issue of displayinginformationtothe user. Consideringof wide range of displaydevices. Determiningthe mostappropriate methodsfordisplay. In thisuseragenttackle twoissues: 1. Generationof documents 2. Presentationof documents. Effective utilization ofinformation Organizationdecisionmakingcannotbe supportedwithasingle tool, asettechnologytoolsare requiredforeffective utilizationof information. Organizationneedsonline–transactionsfordesign,production,logisticsandprofitability. Types ofOn-line transaction: Two typesof on-line transactionare : 1. On-line transactionprocessing(OLTP).

64. 2. On-line analytical processing(OLAP). OLTP involvesthe detailed,day-to-dayproceduressuchasorderentry& ordermanagement. OLAPrefersto the activityinvolvedinsearchingthe wealthof dataresidingthroughoutan enterprise fortrends,opportunities. Navigating the info sphere It involvestwoelatedactivities: - Informationsearch,discoveryandretrieval. - Presentationof retrievedInformation. Search, Discovery and Retrieval: Thisviewischanging inthree ways. 1. Characterizationof accessibleinformation 2. Searchconceptsfrom thisinformation. 3. Developmentof informationfilter Presentation or visualization: It isusedfor easyunderstandingof information. Organizationmustpredefine rulesforvisualization. This processwill highlightthe trouble spotsandareaof opportunities. Presentationincreasesthe fallowingtasksof information: 1. Accessingabilityof information. 2. Collectingof information. 3. Queue of information. 4. Organizingof information. Digital Library Layer

65. Many organizationsmanage theirinformationthroughcorporate library,if itprovide the architecture tomodel,map,integrate &informationindigitaldocumentsiscalleddigital library. It providesinformationstructuresbythisorganizations&workersaccessvastamountof data encodedinmultimediaformats. Digital librariesare of twotypes: 1. Electronicdocument-baseddigital libraries. 2. Data-base orientedwarehouses. Document digital library: The termdocumentisusedtodenote all nondata recordsI.e.books,reports,e-files,videos and audios. Digital libraryissimplyadistributednetworkof interlinkedinformation. Data warehouses: It isa central repositoryforcombiningandstoringvastamountof data fromdiff sources. Sourcesare mainframe database,lint-serverdatabase,textreports….etc. MAKING A BUSINESS CASE FOR DOCUMENT LIBRARY Thissectionhighlightsthe role thatdocumentsplayintoday’sorganizationandhow business can bettermeettheircustomers’needsbyimprovingdocumentmanagementsupport. E-COMMERCE 14 Digital Document Management Issues and Concerns Corporate digital library Accounting and finance Service and supports Manufacturing and production R&D engineering Human resources Sales & marketing Logical cases & contractsCustomers &stake-holders Documentation, manuals, records Government regulations

66. Ad hoc documents: Letters,finance reports,manualsare calledadhocdocuments,whichare preparedbymanagers&professionals. Process-specific documents:invoicesandpurchase orderswhichare created,constructedand distributedbysupportpersonnel.theseare formbased. Knowledge-oriented documents:these are technical documents,catalogsof product information,anddesigndocuments. Types ofDigital Documents Four typesof digital documentsare: Structuringapplicationsaroundadocumentinterface Structuringinterlinkedtextual &multimediaDocuments. Structuringand encodinginformationusingdocument-encodingstandards Scanningdocumentsforstorage andfaxing. Document Imaging Documentimagingemulatesmicrofiche andmicrofilm. An imagingsystempassesappeardocumentthroughascannerthat rendersitdigital andthen storesthe digital dataas a bit-mappedimage of document. The problemwiththe imagingapproachisthatthe outputcontainsonlyimagesnottext. The followingimagingstandardsare prominentlyused: TIFF (tagimage file format):formatforinterchange of bit-mappedimages. ITU-TSS(international telecommunicationunion-telecommunicationstandardizationsector) Group IV T.6 facsimile:thisstandardisusedforcompressionandexchange of bit-mapped files. Structured Documents A structureddocumentprovidescleardescriptionof documentcontent. Structureddocumentsapplydata-base structuringcapabilitiestoindividualdocumentsand documentcollections. Standardfor structureddocumentsare: SGML (StandardGeneralizationMarkupLanguage):

67. It isan ISO standardfor interchange &multi formattingdescriptionof textdocumentinterms of logical structure. ODA(Office DocumentArchitecture): It isan ANSI& ISOstandardfor interchange of compoundofficedocuments.ODAspecifiesboth content& format. CDA (CompoundDocumentArchitecture): It definessetof rulesforcontentandformat.Itdefinesservicesforcompounddocuments. RTF (Rich–TextFormat): It isdevelopedbyMicrosoftforinterchangingof desktopdocuments. Hyper Text Documents Hypertextis a wayof makingdocument-basedinformationmore mobile. Reasonsformobilityof informationare: Informationinenterprisesisseldomlocatedonserverbutisdistributedthroughoutthe organization. Accessing&retrievinglarge monolithicdocumentistime consuming. Reuse of documentforcomposingnew documentsisdifficulttask. In thisrelationshipsbetweendocumentscanbe representedthroughhypermedialinksi.e. hyperlinks. Standards of Hypermedia: HyTime:itadds time based relationshipslikesynchronization,itisextensionof SGML. HTML: developedbyWWW to supportdistributedhypermedia. MHEG(multimedia/hypermediaencoding/exportingGroup):standardforpresentingobjectsin multimedia Active documents Active documentrepresentswhatisknownasdocumentorientedcomputing. Active documentprovide aninteractive interfacebetweendocuments.

68. Active documentsare especiallypowerful because theycombine compositionof information withthe distributednature of information. Ex: spreadsheet,word-processing..etc Issues behind Document Infrastructure Documentinfrastructure addressedthesequestions: What is the properarchitecture forthe corporate digital library? What are appropriate model? What protocolsrequired? What are the besthumaninterfaces? How doesone representandmanipulate the informationprocessingactivitiesoccurredinthe digital library? Document Constituencies: The emergingdocumentprocessing& managementstrategiesmustaddressthese constituencies. Theyneedsystemtoaccessdistributedrepositories&tomanipulate theminanumberof ways. Document-oriented processes Componentsof Document-orientedprocessesare: Documentcreation Documentmediaconversation(itacceptmultipleformsof input) Documentproductionanddistribution Documentstorage and retrieval Document-based framework flows: The followingFouractivitiesmake upthe document-basedframeworkflow: Document modeling:itdefinesthe structure andprocessesthe document. Transformation: createsmodulesforcapturingandvalidating.

69. Synthesizing: create value-addedinformationfromthe combinationof twoormore documents. Business modeling:definesthe structure andprocessesof the businessenvironment. Corporate Data Warehouses Architectureofthedata warehouse is as fallows: E-COMMERCE 27 Data warehouse isusedstore informationof the organization. Data warehouse isneededasenterprise wide toincrease datainvolume andcomplexity. Characteristics ofdata warehouse are: An information-basedapproachtodecisionmaking. Involvementinhighlycompetitive &rapidlychangingmarkets. Data stored in manysystemsandrepresenteddifferently. Functions performed by data warehouse are: Allowexistingtransactionsandlegacysystemstocontinue inoperation. Consolidatesdatafromvarioustransactionsystemsintoacoherentset. Allowsanalysisof virtual informationaboutcurrentoperationsof decisionsupport. Types ofdata warehouses There are fourtypesof data warehouses: Physical data warehouse:Itgatherscorporate dataalong withthe schemasandthe processing logics. Logical data warehouse: Itcontainsall the Metadata and businessrules. Corporate data warehouse Data migration from operational database Data replicated from operational database Middleware for data access clients clients Query monitors search and retrieval

70. Data library: Thisis subset of the enterprise widedatawarehouse. Decision support system (DSS): These are the applicationsbutmake use of data warehouse Managing data To manage data fallowing steps are needed: Translation Summarizing Packaging Distributing Garbage collection Advantages ofdata warehouse: Timelyandaccurate informationbecome anintegral partof the decision-makingprocess. User can manage and access large volumesof inone cohesiveframework. Data warehousinghaswide spreadapplicability. It providespoint-of-salesreportsinsteadof end-of –dayreports. Advertising and Marketing on the Internet The new age of information-basedmarketing. Advertisingonthe internet. Marketingresearch. The NewAge ofInformation-Based Marketing The newage of information-basedmarketingdifferentiate interactive marketingintofourareas: Retailersvsmanufacturers Target and micromarketing Small businessvslarge business Regulatoryandlegal implicationsof cyberspace marketing. Retailers’ vs Manufacturers: The role of Retailersandmanufacturersare fastreversinginelectroniccommerce.

71. Retailer’s vs Manufacturers have the fallowing methods: Market researchand customerprospecting. Market presence method Productor servicesbuildingmethod Information-basedproductspricingandprioritymethod. Target and Micromarketing: Electroniccommerce,technologyhasputtargetand micromarketingwithinthe researchof small business. It givesinformationtothe micromarketersnotonlyaboutits ownbusinessbutalso consumer’sinformation. Consumertargetistwo-wayflowof communicationbetweensellerandbuyer. Directmail and telemarketingare twofastgrowingwaystomicro market. Technologyisanessential tool inmicromarketing. There are two main types ofmicromarketing: Direct-relationshipmicromarketing:isaimedatstimulatingsalesatretail establishments throughdirectcontacts withconsumers. Direct-ordermicromarketing:isfocusedonsellingproductsdirectlytoconsumersintheir homesor businesses. Small vs large: Thread avoid vs goliath syndrome The keydistinctionbetweensmall andlarge businessremainsaccesstonational and international marketingforadvertisingpurposes. Today,exorbitantadvertisingcostrepresentsthe barriertoreachingthe customereffectively. Internetandothernetworksplaysgoodrole inadvertising. The majordifference betweenthe internetandotherI-wayadvertisingmediaare ownership and membershipfees. Due to the empoweringeffectof internet-facilitatedadvertisinghowever,the balance of powerbetweenlarge andsmall companiesmaychange infuture. Advertising on the Internet

72. The notionof advertisingandmarketingbecame inevitable after1991 whenthe internetwas openedforcommercial traffic. There are verygood reasonsforembracingthe inevitabilityof growingof commercial advertisingonthe internet: - Advertisingconveysmuchneededinformation - Advertisinggeneratessignificantrevenue Key components for making internet advertising effectively are: Advertisingprocess Core content Supportingcontent Market and consumerresearch Repeatcustomers On-line advertising paradigms: Twodifferentadvertisingparadigmsare emerginginthe on-line world,theyare: 1. Active orpush-basedadvertising 2. Passive orpull-basedadvertising Active or push-based advertising: Active orpush-basedadvertisingisof twotypestheyare : The broadcast model: Broadcastingmessage providesameansforreachinga greatnumberof people inshortperiod of time. It mimicsthe traditional model,inwhichcustomeridexposedtothe advertisementduringTV programming. It basicallyusesdirectmail,spottelevision,cable television. Text-basedbroadcastmessagesalsousedinadvertisinginUsenetnewsgroups. The junkmail model: Disadvantage of the directmail include relativelyhighcostpercontact.

73. Junkmail isthe justpoorlytargeteddirectmail. It ismost intrusive of all formsof internetadvertising,because itiseasilyimplementedusing electronicmail. Junkmail createsunwantedexpense aswellasan annoyance. Passive or pull-based advertising Pull-basedadvertisingprovideafeedbackloop,companyandcustomers. On-line pull-basedadvertisingincludesthe following: Billboards Catalogs or yellowpagesdirectories: endorsements Basedon the above three we have the fallowingmodels: The billboards or www model: Billboardadvertisingisoftenusedtoremindthe customerof the advertisingmessages communicatedthroughothermedia. The advantage of thismodel isnocustomercharges. In thismessage mustbe simple,direct. Catalog and yellowpages directory model: Traditionally,the mostvisible directoryserviceof advertisingisthe yellow pages. Catalogmodel isthe leastintrusive model butrequiresactive searchonthe part of customer. Yellowpagesare lowincost intermsof productionandplacement. Disadvantage of yellow page includelackof timelinessandlittle creative flexibility. Customer endorsement model: In endorsementspeople tell theirexperienceswithproductsandservices. These are in questionandanswerformat. Marketing Research

74. Market researchisextremelyimportantforcompaniesintermsof how theyallocate their advertisingdollarsinsalespromotions,how theyintroduce new products,how theytarget newmarkets. Broadlymarketingresearchisdividedintothree faces: Data collection Data organization Data analysisandsense making Data collection: Markets mainlyreliedonsource database forunderstandingconsumerbehavior. Source data base mainlycomprise of numericinformation. Deliveryof source database servicesfallowstwomainpatterns. Data collectand collate data,makingitavailable bydatabase producers. Data collectand collate data,makingitavailable bycentral hostslike CompuServe,American online..etc. Data organization: Everyone iscollectingdatafromelectroniccommerce,butveryfew are organizingiteffectively for developingamarketingstrategy. The keyabilitiesintheirenvironmentare: Leverage itsestablisheddatabaseintocustomizedofferings byaudience andmarkets. Leverage itsestablisheddatabase intermsof horizontal growth. Data analysis and sense making: The abilitytolinkdatabase toanalytictoolslike econometricprogramsandforecastingmodels iscalleddata analysis. Market researchisundergoingmajorchanges;the nextgenerationof source database will definitelyincludemultimediainformation.

75. Unit-VII SEARCH AND RESOURCE DISCOVERYPARADIGMS Three informationsearchandresource discoveryparadigmsare inuse: Informationsearchandretrieval Electronic directories&catalogs. Informationfiltering. Information search and retrieval: Searchand retrieval beginswhenauserprovidesadescriptionof the informationbeingtoan automateddiscoverysystem. Using the knowledgeof the environment,the systemattemptstolocate the informationthat matchesthe givendescription. An informationretrievalmethoddependsonthe libraries. The challenge istodevelopuserindomainssuchaselectronicshopping. Searchand retrieval methodsthatrefinequeriesthroughvariouscomputingtechniquessuch as nearestneighbors,themvariantsof original query. Electronic catalogs and directories:

76. Informationorganizing and browsing is accomplished using directories or catalogs‘ Organizing refers to how to interrelate information, by placing it in some hierarchy. Maintaininglarge amountof data isdifficult. Information filtering: Goal of informationfilteringif selectingof datathat is relevant,manageableand understandable. Filtersare of two types 1. Local filter 2. Remote filter Local filters:local filtersworkonincomingdatatoa PC,such as newsfeeds. Remote filters:remotefiltersare oftensoftware agentsthatworkonbehalf of the userand roam aroundthe networkfromone data base to another. CONSUMER SEARCH AND RETRIVAL SEARCH ANDRESOURCE DISCOVERY PARADIGMS INFORMATION SEARCHANDRETRIEVAL ELECTRONIC COMMERCE CATALOGSOR DIRECTORIES INFORMATION FILTERING INFORMATIONSEARCH AND RETRIEVAL Informationsearchissiftingthroughlarge volumesof informationtofindsome target information. Search& retrieval systemare designedforunstructured&semi structural data. The processof searchingcan be dividedintotwotypes: The end-user retrieval phases: consistsof three steps Firstis,the userformulatesatextbasedquerytosearchdata. Secondis,the serverinterpretsusers query,performsthe searchandreturnsthe usera listof documents.

77. Thirdis, the userselectsdocumentsfromthe hitlistandbrowsesthem, readingandperhaps printingselectedportionsof retrieveddata. . The publisher indexing phase: It consistsof enteringdocumentsintothe systemandcreatingindexesandpointersto facilitate subsequentsearches. The processof loadingadocumentand updatingindexesisnormallynotaconcernto the user. These twophasesare highlyinterdependent WAIS (Wide Area Information Service): It enablesuserstosearchthe contentof the filesforanystringof textthat theysupply. WAIShas three elements: Client Sever Indexer It usesan Englishlanguage queryfrontendalarge assortmentof data basesthatcontains textbaseddocuments. It allowsuserssearchthe full textof all the documentsonthe server. Users ondiff platformscanaccess personal,company,andpublishedinformationfromone interface I.e.text,picture,voice,orformatteddocument. Anyone canuse thissystembecause itusesnatural language questionstofindrelevant documents. Thenthe serverstake the userquestionsanddotheirbesttofindrelevantdocuments. ThenWAIS returnsa listof documentsfromthose usersselectsappropriate documents. Today,the Netscape orNCSA mosaicbrowserwiththe formscapabilityisoftenusedasafront- endto talkto WIAS sever. Search Engines: WAISis a sophisticatedsearchengine.

78. The purpose of the searchengine inanyindexingsystemissimple To findeveryitemthatmatchesa query,nomatterwhere itis locatedinthe file system. Searchenginesare nowbeingdesignedtogobeyondsimple,broadband SearchesforwhichWIASis so popular. It usesbothkeywordsandinformationsearchingtorankthe relevance of eachdocument. Otherapproachesto data searchingonthe webor on otherwide areanetworksare available. Indexing methods: To accomplishaccuracyand conserve diskspace,twotypesof indexingmethodsare usedby searchengines. Theyare: 1. File-level indexing 2. Word-level indexing File-level indexing: It associateseachindexedwordwithalistof all filesinwhichthatwordappear at leastonce. It doesnotcarry any informationaboutthe locationof wordswithinthe file. Word-level indexing: It ismore sophisticatedandstoresthe locationof eachinstance of the word. The disadvantage of the word-level indexingisthatall the extrainformationtheycontain gobblesupa lotof diskspace,itis 35-100 percentof the original data. The processof indexingdataissimple one ,it haslarge numberof indexingpackages: These indexingpackagesare categorizedintothreetypes,theyare: 1. The client-serverapproach 2. The mainframe-basedapproach 3. The parallel-processing approach Search and newdata types: We have the followingsearchtechnologiesforeffective search:

79. Hypertext:richlyinterwovenlinksamongitemsindisplaysallowuserstomove inrelativelyadhoc sequencesfromdisplaytodisplaywithinmultimedia. Sound: speechinputandoutput,musicandwide varietyof acousticcuesinclude realisticsoundsthat supplementandreplace visual communication. Video:analogare digital videoinputfrommultiple media,includingvideotapes,CD-ROM, incorporatedbroadcastvideosturners,cablesandsatellites. 3D-images:virtual realitydisplaysoffera3D environmentinwhichall portions of the userinterface are 3D. Searchingusingthese newtypesof informationposesinterestingchallengesthatneedtobe addressedsoon. WwwRobots,wanderer,andSpiders Robots,Wanderer,AndSpidersare all programsthat traverse the www automatically gatheringinformation. ELECTRONIC COMMERCE CATALOGS OR DIRECTORIES A directoryperformsanessentialsupportfunctionthatguidescustomersinamaze of options by enablingthe organizationsof the informationspace. Directoriesare of twotypes: 1. The white pages 2. Yellowpages The white pagesare usedto people orinstitutionsandyellow pagesare usedtoconsumers and organizations. Electronic white pages: Analoguestothe telephone white pages,the electronicwhite pagesprovide servicesfroma staticlistingof e-mail addressestodirectoryassistance. White pagesdirectories,alsofoundwithinorganizations,are integral toworkefficiency. The problemsfacingorganizationsare similartothe problemsfacingindividuals. A white pages schemaisadata model,specificallyalogical schema,fororganizingthe data containedinentriesinadirectoryservice,database,orapplication,suchasan addressbook. A white pagesschematypicallydefines,foreachreal-worldobjectbeingrepresented:

80. What attributesof that objectare to be representedinthe entryforthatobject. What relationshipsof thatobjecttootherobjectsare to be represented? One of the earliestattemptstostandardize awhite pagesschemaforelectronicmail use wasin X.520 and X.521, part of the X.500 a specificationthatwasderivedfromthe addressing requirementsof X.400. In a white pagesdirectory,eachentrytypicallyrepresentsanindividual personthatmakesthe use of networkresources,suchasbyreceivingemail orhavinganaccountto log intoa system. In some environments,the schemamayalsoinclude the representationof organizational divisions,roles, groups,anddevices. The termisderivedfromthe white pages,the listingof individualsinatelephone directory, typicallysortedbythe individual'shome location(e.g.city) andthenbytheirname. White pages through x.500: One of the firstgoal of the X.500 projecthas beentocreate a directoryforkeepingtrackof individualelectronicmail addressonthe internet. X.500 offersthe followingfeatures: -Decentralizedmaintenance -Each site runningx.500 isresponsible onlyforitslocal part of the directory. Searching capabilities:x.500providespowerful searchingcapabilitiesi.e.inthe white pages;you can search solelyforusersinone country.Fromthere youcan view a list of organizations,then departments,thenindividualnames. Thisrepresentsthe tree structure. Single global name space:x.500providessinglename space tousers. Structured information framework: X.500 definesthe informationframeworkusedinthe directory,allowinglocal extensions. Standards-based directory:X.500 can be usedto builddirectoryapplicationsthatrequires distributedinformation. Lecture 4

81. WHITE PAGES DIRECTORY INFORMATION TREE E-COMMERCE 28 ELECTRONIC YELLOWPAGES: The termYellow Pages referstoatelephone directoryof businesses,categorizedaccordingto the product or service provided. The traditional term Yellow Pages isnow alsoappliedtoonlinedirectoriesof businesses. To avoidthe increasingcostof yellow paper,the yellow backgroundof the pagesiscurrently printedonwhite paperusingink.Yellowpaperisnolongerused. The name andconceptof "YellowPages"came aboutin1883, whenaprinterinCheyenne, Wyomingworkingona regulartelephone directoryranoutof white paperandusedyellow paperinstead. In 1886 ReubenH.Donnelleycreatedthe firstofficial yellow pagesdirectory,inventingan industry. Today,the expression Yellow Pages isusedglobally,inbothEnglish-speakingandnonEnglish speakingcountries. In the US, it referstothe category,while insome othercountriesitisa registeredname and therefore apropernoun. Third-party directories can be categorized variously: Basic yellowpages: These are organizedbyhuman-orientedproductsandservices. Business directories:Thistakesthe extendedinformationaboutcompanies,financialhealth, and newsclippings. State business directories:thistype of directoryisusefulinbusinessesthatoperate ona state or geographicbasis. o U.K Fr. U.S a b c d e f g h I j k Root Countries individuals Organizations

82. Directories by SIC :( standardindustrial classification) directoriesare compiledbythe government. Manufacturer’s directories:if yourgoal isto sell yourproductor service tomanufacturers, thenthistype of directoryisused. Big-businessdirectory: Thisdirectorylistscompaniesof 100 or more employees. Metropolitan area businessdirectory:Itdevelopssalesandmarketingtoolsforspecificcities. Credit reference directory:thisdirectoryprovidescreditratingcodesformillionsof US companies. World Wide Web directory:thislists the varioushyperlinksof the variousserversscattered aroundthe internet. INFORMATIONFILTERING An Information filtering systemisa systemthatremovesredundantorunwantedinformation froman informationstreamusing(semi)automatedorcomputerizedmethodspriorto presentationtoahumanuser. Its maingoal is the managementof the informationoverloadandincrementof the semantic signal-to-noise ratio.Todothisthe user's profile iscomparedtosome reference characteristics. A notable applicationcanbe foundinthe fieldof email spamfilters. Thus,it isnot onlythe informationexplosionthatnecessitatessome formof filters,butalso inadvertentlyormaliciouslyintroducedpseudo-information. On the presentationlevel,informationfilteringtakesthe formof user-preferences-based newsfeeds,etc. Recommendersystemsare active informationfilteringsystemsthatattempttopresenttothe userinformationitems(movies,music,books,news,webpage)the userisinterestedin. Informationfilteringdescribesavarietyof processesinvolvingthe deliveryof informationtopeople whoneedit. Thistechnologyisneededasthe rapidaccumulationof informationinelectronicdatabases. Informationfilteringisneededine-mails,multimediadistributedsystemandelectronicoffice documents. The featuresof the informationfilteringare:

83. Filteringsystemsinvolveslarge amountsof data(gigabitsof text). Filteringtypicallyinvolvesstreamsof incomingdata,eitherbeingbroadcastbyremote sources or sentdirectlybyothersourceslike e-mails. Filteringhasalsobeenusedtodescribe the processof accessingandretrievinginformation fromremote database. Filteringisbasedondescriptionsof individual orgroupinformationpreferences,oftencalled profiles. Filteringsystemdealprimarilywithtextual information. Email filtering: It is the processingof e-mail toorganize itaccordingtospecifiedcriteria. Most oftenthisreferstothe automaticprocessingof incomingmessages,butthe termalso appliestothe interventionof humanintelligence inadditiontoanti-spamtechniques,andto outgoingemailsaswell asthose beingreceived. Email filteringsoftware inputsemail. For itsoutput,it mightpassthe message throughunchangedfordeliverytothe user'smailbox, redirectthe message fordeliveryelsewhere,oreventhrow the message away. Some mail filtersare able toeditmessagesduringprocessing. Commonusesfor mail filtersinclude removal of spamandof computerviruses. A lesscommonuse isto inspectingoutgoinge-mail atsome companiestoensure that employeescomplywithappropriate laws. Users mightalsoemployamail filtertoprioritize messages,andtosort themintofoldersbased on subjectmatteror othercriteria Mail-filtering agents: Users of mailing-filteringagentscaninstructthemtowatch foritemsof interestine-mail in- boxes,on-line newsservices,electronicdiscussionforums,andthe like. The mail agentwill pull the relevantinformationandputitinthe userspersonalized newspapersatpredeterminedintervals. Example of Apple’sApple Searchsoftware.Mail filterscanbe installedbythe user,eitheras separate programs(see linksbelow),oraspart of theire-mail program(e-mail client).

84. In e-mail programs,userscanmake personal,"manual"filtersthatthenautomaticallyfilter mail accordingto the chosencriteria. Most e-mail programsnowalsohave anautomaticspam filteringfunction. Internetservice providerscanalsoinstall mail filtersintheirmail transferagentsasaservice to all of theircustomers.Corporationsoftenuse themtoprotect theiremployeesandtheir informationtechnologyassets. News-filtering agents: These deliverreal-time on-line news. Users can indicate topicsof interest,andthe agentwill alertthemtonewsstoriesonthose topicsas theyappearon the newswire. Users can alsocreate personalizednewsclippingreportsbyselectingfromnewsservices. Consumerscanretrieve theirnewsfromthroughthe deliverychannel of theirchoice like fax,e- mail,wwwpage,orlotusnotesplatform.

85. Unit-VIII MULTIMEDIA ANDDIGITAL VIDEO KEY MULTIMEDIA CONCEPTS DIGITAL VIDEOANDELECTRONIC COMMERCE DESKTOPVIDEO PROCESSING DESKTOPVIDEO CONFERENCING KEYMULTIMEDIA CONCEPTS Multimedia:the use of digital datain more than one format,suchas the combinationof text, audioand image datain a computerfile. The theorybehindmultimediaisdigitizingtraditional medialikewords,sounds,motionand mixingthemtogetherwithelementsof database. Multimedia data compression: Data compressionattemptstopackas much informationaspossibleintoagivenamountof storage.The range of compressionis2:1 to 200:1. Compression Methods: Sector-oriented disk compression (integratedintothe operatingsystem, thiscompressionis invisible toenduser) Backup or archive-oriented compression(Compressfilebeforetheyare downloadedover telephonelines) Graphic & video-oriented compression(Compressgraphics&videofilebefore theyare downloaded) Compression ofdata being transmitted over low-speed network(techusedinmodems, routers) Data compression in action: Data compressionworksbyeliminatingredundancy. In general ablockof textdata containing1000 bitsmayhave an underlyinginformation contentof 100 bits,remainingisthe white space. The goal of compressionistomake the size of the 1000-bit to 100-bit (size of underlying information).thisisalsoapplicable toaudioandvideofilesalso.

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