Balaji Institute of I.T and Management Kadapa: Semester-4 E-Business

BALAJI INSTITUTE OF
I.T AND MANAGEMENT

KADAPA
SEMESTER-4 E-BUSINESS
ICET CODE: BIMK
SECOND INTERNAL
ALSO DOWLOAD AT http://www.bimkadapa.in/materials.html
Name of the Faculty: L.NIKHILA
Units covered: half of 3rd ,4th & 5th UNITS
E-Mail: nikhila7799@gmail.com
SYLLABUS
(17E00402) E-BUSINESS
Objective: The course imparts undertaking of the concepts and various application issues of
e-business like Internet infrastructure, security over internet, payment systems and various
online strategies for e-business.
1. Introduction to e-business : Electronic business, Electronic commerce, difference

between e-business & e-commerce, electronic commerce models, types of electronic
commerce, value chains in electronic commerce, E-commerce in India, internet, web
based tools for electronic commerce. Electronic data, Interchange, components of
electronic data interchange, electronic data interchange process.
2. Security threats to e- business: Security overview, Electronic commerce threats,
Encryption, Cryptography, public key and private key Cryptography digital
signatures, digital certificates, security protocols over public networks : HTTP, SSL,
Firewall as security control, public key infrastructure (PKI) For Security.
3. Electronic payment system: Concept of money, electronic payment systems, types
of electronic payment systems, smart cards and electronic payment systems,
infrastructure issues in EPS, Electronic fund transfer.
4. E-business applications and strategies : Business models & revenue models over
internet, emerging trends in e- business- governance, digital commerce, mobile
commerce, strategies for business over web, internet based business models.
5. E –business infrastructure and e-marketing: Hard works system software
infrastructure, ISP’s, managing e-business applications infrastructure, what is e-
marketing, e-marketing planning, tactics, strategies.
Text books:
 Dave chaffey :e-business & e-commerce management- Pearson.
 e- commerce- e-business :Dr.C.S.Rayudu, Himalaya.
References :
 Whitley, David (2000) ,e-commerce strategy,Technologies and applications.TMH.
 Schneider Gary P.and Perry, James T(1ST edition 2000) Electronic commerce,
Thomson Learning.
 Bajaj, Kamlesh K and Nag, Debjani (1st edition 1999) ,e- commerce, The cutting edge
of business,TMH Publishing company
UNIT-3 ELECTRONIC PAYMENT SYSTEM BALAJI INSTITUTE OF IT AND MANAGEMENT Page 1

UNIT-3
ELECTRONIC PAYMENT SYSTEM
4. SMART CARDS (ELECTRONIC CREDIT CARD)
 It is a plastic card embedded with Micro processor that has customers

personal information and can be loaded with money to make online
transactions and instant payment of bills.
 Simply, a Smart Card is pocket-sized card with embedded integrated
circuits which can process data.
 The smart card is a plastic card, equal to the size of a credit card, with an
embedded micro processor and memory, used for storing information
related to banking , medical data etc.,
 It is most convenient device to draw cash from ATM (Automatic Teller
Machine).
 Smart Card permits users to access a variety of services.
 A smart card will help to buy stationary, books, groceries, operate bank
accounts, make long distance phone calls, payments and get access to the
internet.
 A Smart card is a multi-functional Micro – Processor and memory on a
Computer chip that is embedded in a card.
 Smart card is literally a computer in a card.

In advanced countries like France and the US, Smart cards are produced and
are in wide use.
They have a simple processor and a small memory.
Days will come when smart cards will soon be replacing credit cards.
Smart card is a mini computer.
There is always an interaction between the smart card and other external
devices which read the card and enter the data on to it.
So, in future, the users could operate their cards at home and turn their
PCs into the automatic teller machine (ATM) to make electronic
payments or to draw money from their bank accounts.
 Smart cards can be used to
1. Blood flow/Heartbeat detection
2. Contactless finger print
3. DNA scanner
FEATURES
1. The amount of sales or purchase is stored in the card’s memory.
2. A deduction is given from the card holder’s credit balance.
3. When a transaction takes place, say a purchase, the information as to the
amount of purchase, the name and address of the store and the data is
stored in the memory. It requires a device known as the card reading
machine.
4. The machine is also connected to a home computer, a television set or a
printer which displays a full record of all purchases made with the card.
HISTORY
 A smart card as used today was filed by Jorgen Delhloff in 1976.

 In 1977, Michel Ugon from Honeywell Bull invented the first
microprocessor Smart Card with two chips, (microprocessor and
memory.)
 In 1983,the first Mass use of the cards , as a telephone card for payment
in French payphones.
USES OF SMART CARD

1. BANKING & RETAIL (ATM cards, credit cards and debit cards)
 Smart card used as fuel cards and phone payment cards.
 Smart cards are used as “electronic wallets” when the chip is loaded with
money to pay for small purchases such as groceries, laundry services,
cafeteria food and taxi rides.
2) HEALTHCARE
 In hospitals data rapidly increasing, smart cards assist with maintaining
the efficiency of patient care and privacy safeguards.
 Smart card stores patient’s medical history, instantly access the

information and update it if needed and reduce health care fraud.
 Smart card helps in insurance processing.
 In addition, smart cards enable compliance with government initiatives,

such as organ donation programs.
3) ID VERIFICATION & ACCESS CONTROL

 Smart cards can be used to verify person’s identity in places like business
offices ,universities, software companies ,Army etc.,
 For companies with higher security needs, a smart card can be a tamper-
proof device to store information, such as a user’s picture or fingerprints.
 All U.S. government facilities and many corporations have incorporated

contactless readers as an access point to their facilities, and some had
included a biometric component.
4) MOBILE COMMUNICATIONS
 Smart cards are used as Subscriber Identity Molecules (SIM) cards in
mobile phones.

 Each SIM card has a unique identifier that manages the rights and
privileges of each subscriber and makes easy for identification.
5) COMPUTER & NETWORK SECURITY

 Microsoft Windows, new versions of Linux and Sun Microsystems have
begun using smart cards as a replacement for user names and passwords.
 Understanding that Public Key Infrastructure (PKI)-enhanced security is

needed, a smart card badge is becoming the new standard.
 Using smart cards, users can be authenticated and authorized to have

access to specific information based on preset privileges.
HOW SMART CARD WORKS

A Smart card is connected to the host computer or controller via a card
reader which gets information from the smart card and accordingly passes
the information to the host computer or controller.
SMART CARD CARD READER COMPUTER

4.7 DIFFERENCE BETWEEN CREDIT CARD, DEBIT CARD
AND SMART CARD
CREDIT CARD DEBIT CARD SMART CARD

A Credit card is Debit cards are magnetic A smart card contains a
basically an electronic strip and chip enabled special embedded
card with magnetic data cards, issued to microprocessor, which is
strip or a chip, issued to customers by their a computer processor or a
customers by banks and respective banks microchip
other credit agencies.
Credit cards are lines of Any time you use a debit Smart cards applications
credit when you use a card to buy something, benefit consumers where
credit card, the issuer money is deducted from their life and business
puts money toward the your account with a habits intersect with
transaction. This is a debit card you can really payment processing
loan you are expected to only spend the money technologies
pay back in full unless you have available to
you won't to be charged you.
interest.
Credit cards in the U.S A PIN makes them Smart cards offer more
are not very secure and secure so long as no one security and
of themselves many still steals the card number confidentially than any
dated card technology. and PIN as long as you other financial or
However consumers are don't lose the card itself.
transaction storage card
not held liable for this If the card is stolen, the market. They are a
poor security debit cards are very safe place to store
insecure sensitive or personal
information
Credit Card not required Checking or saving Smart cards links directly
to be connected to a accounts to the Internet
checking account.
Credit cards are mostly Debit cards can be used Smart cards widely used
used in online payments,with a PIN almost in telecommunications
to sell things or the web
everywhere retail stores, industry
gasoline, restaurants and
pay phones
For the merchant credit Debit cards are more The retail industry widely

card transactions result readily accepted by uses applications of the
in immediate credit to merchants than are smart card more specially
the merchants bank checks. Especially in to identify and reward
account countries where check customers.
cashing and check
processing are not
5. ELECTRONIC PAYMENT SYSTEM: Refer 2nd topic in unit-4

6. INFRASTRUCTURE ISSUES IN EPS (ELECTRONIC
PAYMENT SYSTEM)
Electronic payments communication infrastructure includes computer
network, Such as the internet and mobile network (mobile data) used for
mobile phone.
Infrastructure is necessary for the successful implementation of electronic
payments.
 For electronic payments to be successful there is a need to have reliable

and cost effective infrastructure that can be accessed to the majority of the
population.
 In addition, banking activities and operations need to be automated. A
network that links banks and other financial institutions for clearing and
payment confirmation is a pre-requisite for electronic payment systems.
Mobile network and Internet are readily available in the developed world
and users usually do not have problems with communication
infrastructure.
 In developing countries, many of the rural areas are unbanked and lack of
access to infrastructure that drives electronic payments.
 Some of the debit cards technologies like Automated Teller Machines
(ATMs) are still seen by many as unreliable in some areas through
fraudulent deductions.
 Telecommunication and electricity are not available throughout the
country, which negatively affect the development of e-payments. The
development of Information and Communication Technology (ICT) is a
major challenge for e-payments development.

6.1 CHALLENGES OF EPS (ELECTRONIC PAYMENT
SYSTEM) ARE AS FOLLOWS
 Security
 Infrastructure
 Regulatory
 Legal Issues
 Socio – cultural challenges
 Multi-Currency and Payment Methods
 Card data security
 Fraud and Chargeback
7. ELECTRONIC FUND TRANSFER (EFT)

EFT are electronic transfer of money from one bank account to another,
either within a single financial institution or across multiple institutions,
via computer based systems, without the direct intervention of bank staff.
EFT is safe, secure, efficient, and less expensive than paper cheques payments
& collections.EFT offers several services to consumers as a means of payment.
For example, when we use debit card to make a purchase at a store or online,
the transaction is processed using an EFT system. It is just a paper free Banking
system.EFT uses computer systems.
7.1 VARIOUS MODES OF EFT IN INDIA

1. NEFT – National Electronic Funds Transfer
2. RTGS – Real Time Gross Settlement
3. IMPS – Immediate Payment Service
1. NEFT – NATIONAL ELECTRONIC FUNDS TRANSFER

The national electronic funds transfer is a nationwide money transfer
system which allows customers with the facility to electronically transfer
funds from their respective bank accounts to any other account of the
same bank or other bank network.
Before transferring funds via NEFT you have to register the receiver. For
this you must possess information such as name of the recipient,
recipient’s bank name, a valid account number belonging to the receiver
and his respective bank’s IFSC code.

Any sum of money can be transferred using the NEFT system with a
maximum capital of Rs. 10, 00, 000.
2. RTGS – REAL TIME GROSS SETTLEMENT

It is a real time funds transfer system which facilities to transfer money
from one bank to another in real time or on a gross basis. The transaction
isn’t put us on a waiting list. The transfer of money is cleared out
instantly.
RTGS payment gateway, maintained by the Reserve Bank of India which
makes transactions between different banks electronically.
The transferred amount is instantly deducted from the account of one
banks and credited to the other bank’s account.
The minimum value that can be transferred using RTGS is Rs. 2lakhs .
However there is no upper cap on the amount that can be transferred.
The customer needs to add the receiver and his bank account details prior
to transacting money via RTGS.
The details required while transferring funds would be the beneficiary’s
name; his/her account number, receiver’s bank address and the IFSC
(Indian Financial System Code) of the respective bank.
3. IMPS - IMMEDIATE PAYMENT SERVICE
The National Payment Corporation of India (NPCI) introduced a pilot
mobile payment project also known as the immediate payment service
(IMPS)
IMPS offers instant electronic transfer service using mobile phones.
The IMPS service also features a secure transfer gateway and an
immediate confirmation on fulfilled orders.
IMPS are offered on all the cellular devices via mobile banking or
through SMS facility.
To be able to transfer money via IMPS route you must first register for
the immediate payment services with your bank.
Thus IMPS enables customers to use mobile instruments as an instant
money transfer gateway, facilitating user convenience and saves time and
effort involved in other modes of transfer.
7.3 EFT ACT

 The electronic fund transfer act was passed by the U.S. CONGRESS in
1978.

7.4 ADVANTAGES OF EFT
1. Increase efficiency and productivity.
2. Manage cash flow easily
3. Improve safety and control
4. Saves money
5. Less paper works
6. Cheaper
7. Faster
8. Saves time and power
9. Safe & Secure
10. Eliminate the risks associated with lost, stolen or misdirected cheques
11. EFT provides our office with the capacity to,
 Automate our payments
 Electronically update our accounts information
 Streamline our cash flow
 Reduce administrative cost
 Eliminate overdue accounts
 Manage delayed disbursement
 Get set up and add customers
EFT SAVES OUR TIME AND MONEY

In short we can say that EFT is FAST, SIMPLE, SAFE, and SECURE
7.5 DISADVANTAGES
1. Unreliability of technology-once the bank network is down all
transactions cannot be carried out.
2. Loss of human interaction
3. Fraud
4. Hackers may hack your accounts and may steal money.
5. One of the major disadvantages of EFT is RISK OF SECURITY ISSUE.
6. If you entered the target number incorrectly there is no way to reverse the
transaction since the bank would process the transaction under the belief
that the information you provided is accurate.
7. Once an amount is transferred, there is no chance to reverse a transaction.
7.6 Different names of EFT

In India -EFT
In US -Electronic Checks or e-checks
In UK -Bank transfer and Bank payment
Europe -Giro transfer
7.7 TYPES OF EFT

1. ATM (Automated Teller Machine) transfers
2. Direct deposit: Payment or withdrawals of money (funds) initiated by the
payer through deposit machines.
3. Direct Debit: Payments for which a business debits the consumer’s bank
accounts for payment for goods and services.
4. Transfer initiated by Telephone.
5. Transfers resulting from credit or debit card transactions, whether or not
initiated through a payment terminal.
6. Wire transfer via an international banking network such as SWIFT
7. Electronic bill payment in online banking, which may be delivered by
EFT.
8. Instant Payment
Common uses of EFT
 Using a credit / debit card (from your account to seller account)
 Online bill payment
 Direct debit ( to car, house, companies)
 Direct deposit
7.8 TOOLS OF EFT

 ATM
 Credit & Debit Cards
 Internet
 Mobile Banking
Do one thing at a Time, and while doing it put your whole Soul
into it to the exclusion of all else. ― Swami Vivekananda

SYLLABUS
Objective: The course imparts undertaking of the concepts and various application issues of
e-business like Internet infrastructure, security over internet, payment systems and various
online strategies for e-business.

Encryption, Cryptography, public key and private key Cryptography digital
signatures, digital certificates, security protocols over public networks : HTTP, SSL,
Firewall as security control, public key infrastructure (PKI) For Security.
3. Electronic payment system: Concept of money, electronic payment systems, types
of electronic payment systems, smart cards and electronic payment systems,
infrastructure issues in EPS, Electronic fund transfer.
4. E-business applications and strategies : Business models & revenue models over
5. E –business infrastructure and e-marketing: Hard works system software
Text books:
 Dave chaffey :e-business & e-commerce management- Pearson.
 e- commerce- e-business :Dr.C.S.Rayudu, Himalaya.
References :
 Whitley, David (2000) ,e-commerce strategy,Technologies and applications.TMH.
 Schneider Gary P.and Perry, James T(1ST edition 2000) Electronic commerce,
Thomson Learning.
 Bajaj, Kamlesh K and Nag, Debjani (1st edition 1999) ,e- commerce, The cutting edge
of business,TMH Publishing company
UNIT-4 E-BUSINESS APPLICATIONS AND STRATEGIES BALAJI INSTITUTE OF IT AND MANAGEMENT Page 1
UNIT-4
E-BUSINESS APPLICATIONS AND STRATEGIES
1. INTRODUCTION OF E-BUSINESS APPLICATIONS
 Electronic business (or) e Business (or) an Internet business, is defined
as the application of Information and Communication Technologies (ICT)
to business activities.
 Commerce refers to the exchange of products and services in a large
quantity.
 Electronic commerce is the subset of E-Business, that focuses on the use
of ICT to enable the external activities and relationships of the business
with individuals, groups and other businesses.
1.1 WEB (INTERNET) FOR BUSINESS APPLICATIONS
Web is used for the following
 Attracting new customers through E-marketing & E-advertising
 Improve service efficiency through E-service & E-support functions.
 Enlarge the scope and reach through web by putting products and
services on web.
 Used for conducting business through E-commerce
1.2 BENEFITS OF E-BUSINESS
 Increase Sales
 Reduce Marketing Cost
 Low Cost
 Accessible
 Communication
 Case of formation & low investment / work from home
 Convenience
 Speed
 Global reach/Access
 Paperless Society
1.3 LIMITATIONS OF E-BUSINESS
 Low personal touch
 Incompatibility between order taking / giving and order fulfillment speed.
 Need for technology capability & competence of parties to e-business
 Increased risk due to Anonymity and non-traceability of parties if
COD(Cash On Delivery) by customer not available at particular address
there may be loss to company not able to trace to customer, so to
overcome they has to call to customer.
1.4 WHY E-BUSINESS
 Lack of time at public or consumer
 Flexibility in timings for payment
 Easy delivery at door steps
 Planning for payment
 Safe transactions
1.5 APPLICATIONS OF E-BUSINESS
1. Internal business systems
 Customer Relationship Management
 Enterprise Resource Planning
 Document Management systems
 Human Resources Management
2. Enterprise communication and collaboration
 E-mail
 Voice mail
 Web conferencing
 Business process Management
3. Electronic commerce
 Internet shop
 Supply Chain Management
 Online marketing
 Offline marketing
 The impact of e-business has already begun to appear in all areas of

business ranging from customer service to new product design.
1.6 NEW TYPES OF E-BUSINESS INTERACTION WITH
CUSTOMERS
1. E-procurement
2. E-bidding
3. E-communication
4. E-delivery
5. E-trading
6. E-books
7. Online super market
8. news papers
9. E-trading
10. E-advertising
11. E-taxation
12. E-ticking
13. E-banking
14. E-post
1.7BUSINESS MODELS AND REVENUE MODELS

OVER INTERNET
1.7.1 BUSINESS MODELS OVER INTERNET
The internet has given rise to new kinds of business models. They are as
follows
1. Social Media Model

2. Affiliate Model
3. Subscription Model
4. Merchant Model
5. Advertising Model
1. SOCIAL MEDIA MODEL:
 For example, Face book, with over 800 million users, is the most
successful social media model. Some other examples are LinkedIn,
Twitter, Google plus, and Many more.
 But how do these companies generate revenue?
 This social media business model works by offering a free online service
(in this case the service is social networking) and then selling targeted ads
to the users.
 The users do not pay anything to use the service As face book’s
homepage, “it’s free and it always will be”
 The reason advertising is effective on social networks is because
companies can buy ads on a pay-per-click basis.
2. AFFILIATE MODEL
The affiliate business model is another successful Internet business model in use
today.
Here’s how it works:
 A business sets up an “affiliate program” where it offers financial
incentives to affiliates (persons) for each visitor or customer brought
about by the affiliate’s own marketing efforts.
 Typically the affiliate is given a unique “affiliate link” which is tracked
by the business.
 Every time a sale is made as a result of this process the affiliate receives a
percentage of the sale.
 This Internet business model is well-suited for trusted sites which have
large followings.
3. SUBSCRIPTION MODEL
 In Subscription model , the users have to pay a fee to use that particular
service monthly or yearly, like subscription of dish in houses.
 With over 24 million subscribers, Netflix is one the most successful
companies that use the subscription business model.
 Another way companies profit from a subscription business model is by
combining free content with “premium” (i.e., member-only) content.
 In this premium business model, companies like LinkedIn use this
strategy to encourage usership and charge the best users.
 Most of LinkedIn’s 150 million users are basic (free) members.
4. MERCHANT MODEL
 The merchant business model is one of the most profitable Internet
business models. Example: The Amazon
 The merchant model is a business model that goes back thousands of
years.
 But the Internet has provided a tremendous opportunity for merchants to
grow at an almost unbelievable rate.
 In the merchant model a merchant simply sells the products directly to
buyers.
 It could be clothes, CDs, or cars but the concept is the same.
 Internet business models that depend on the merchant model may face
some challenges like sales tax problems which is burden to the customers.
 The sales tax is added to services because the government needs the
money and merely reduce the growth of strong merchants like Amazon.
5. ADVERTISING MODEL
 Again we have another old business model that has been applied to the
Internet.
 The advertising business model is an extension of the traditional media
broadcast model.
 Now a days the internet websites like Google, yahoo act as advertising
model that has large users.
 The more people watching the media company (or using their service),
the more money they can charge for advertisements.
 This Internet business model relies on heavy traffic to the website.
 A company using this model must provide a valuable service that
millions of people use on a regular basis (i.e. Google search, Gmail) in
order to command high prices from ad space.
1.7.2 REVENUE MODEL OVER INTERNET

The model which is used for generating revenues (profits) is called
revenue model.
This model identifies the revenue source to pursue, what value to offer,
how to price the value, and who pays for the value.
It is a key component of a company's business model.
It primarily identifies what product or service will be created in order to
generate revenues and the ways in which the product or service will be
sold.
By having a clear revenue model, a business can focus on a target
audience, fund development plans for a product or service, establish
marketing plans, begin a line of credit and raise capital.
CONTENTS
1. Production model
a. Manufacturing model
b. Construction model
2. Rental or leasing model
3. Advertising model
4. Sponsored ranking model
5. Commission model
6. E-commerce model
7. Fee-for-service model
8. Licensing model
a. Software licensing model
b. Shareware model
9. Subscription model
EXPLANATION
1. PRODUCTION MODEL
 In the production model, the business produces the product or services
and sells it to the customers.
 Example: The Company that produces paper, sells it to either the direct
public or to other businesses, who pay for the paper, thus generating
revenue for the paper company.
a. MANUFACTURING MODEL
 Manufacturing is the production of merchandise using labour,
materials, and equipment, resulting in finished goods.
 Revenue is generated by selling the finished goods.
 They may be sold to other manufacturers for the production of more
complex products (such as aircraft, household appliances or
automobiles), or sold to wholesalers, who in turn sell them to retailers,
who then sell them to end users and consumers.
b. CONSTRUCTION MODEL
 Construction is the process of constructing a building or
infrastructure.
 Construction differs from manufacturing , manufacturing typically
involves mass production of similar items without a designated
purchaser, while construction typically takes place on location for a
known client, but may be done speculatively for sale on the real
estate market.
2. RENTAL OR LEASING MODEL

 Renting is an agreement where a payment is made for the temporary use
of a good, service or property owned by another.
 Leasing model means, making an agreement for fixed charges (for
monthly or yearly) irrespective of business profits.
 Things that can be rented or leased include land, buildings, vehicles,
tools, equipment, furniture, etc.
3. ADVERTISING MODEL
 The advertising model is often used by Media businesses platforms where
content is provided to the customer as an advertisement.
 Examples are newspapers and magazines which generate revenue through
the various advertisements encountered in their issues.
 Internet businesses provide services will also have advertising spaces on
their platforms.
 Examples include Google .
 Mobile applications also use advertising model to generate revenues.
 By incorporating some advertisement space, many popular apps such as
Twitter and Instagram have strengthened their mobile revenue potential
after previously having no real revenue stream.
4. SPONSORED RANKING MODEL

 The sponsored ranking model is a variant of the Advertising model.
 The sponsored ranking model is mainly used by search engine platforms
like Google and specialized products- and IT-services- platforms where
users are offered free search functionality in return for sponsored results
in front of other search results.
 The sponsor is often paying per click, per view.
5. COMMISSION MODEL (REMUNERATION)
 The commission model is similar to the markup model, it is used as when
a business charges a fee for a transaction that it mediates between two
parties.
 Brokerage companies or auction companies often use it as they provide a
service as intermediaries and generate revenue through commissions on
the sales of either stock or products.
6. E-COMMERCE MODEL
This revenue model is the implementation of revenue models online.
NOTE: Refer Unit-1 E-Commerce models
7. FEE-FOR-SERVICE MODEL
 In the fee-for-service model, unlike in the subscription model, the
business only charges customers for the amount of service or product
they use.
8. LICENSING MODEL
 In licensing model, the business that owns a particular content retains
copyright by selling licenses to third parties.
 Software publishers sell licenses to use their programs rather than direct
selling.
 Media companies also obtain their revenues in this manner, as do patent
holders of particular technologies.
a. SOFTWARE LICENSING MODEL
 Rather than selling software, software publishers generally sell the right
to use their software through a limited license time to the purchaser.
b. SHAREWARE MODEL
 In the shareware model, users are encouraged to make and share copies of
a software product and distribute among themselves by paying limited
amount.
 Payment may be left entirely up to the goodwill of the customer.
9. SUBSCRIPTION MODEL
 In the subscription model, the business provides a product or service to a
customer who in return pays a pre-determined fee at contracted periods of
time to the business.
 The customer will be required to pay the fee until the contract with the
business is terminated or expires, even if he is not using the product or
service but is still adhering to the contract.
 Possible examples are flat-rate cellular services, magazines and
newspapers.
1.7.3 REVENUE STREAMS:

A revenue stream is an amount of money coming into a business from a
particular source. A revenue model describes how a business generates revenue
streams from its products & services. Advertising is one of the component of
the revenue model however, when the business is advertising its own product,
this would result as a cost for the business which is the exact opposite of
revenue. On the other hand advertising can lead to an increasing sales, thus
revenue over a period of time.
1.7.4 REVENUE MODEL V/S BUSINESS MODEL

People often confuse "revenue model" and "business model" as being
synonymous, or as being two completely different kind of models.
A revenue model is part of a business model.
A business model shows the framework for an entire business and allows
investors and bankers as well as the entrepreneurs themselves to have a
quick way of evaluating that business.
Business models can be viewed in many different ways, but they are
generally composed of the following six elements:
1. Acquire high value customers
2. Offer significant value to customers
3. Deliver products or services with high margins
4. Provide for customer satisfaction
5. Maintain market position
6. Fund the business
The revenue model is a key component of the business model as it is an

essential factor for delivering products or services with high margins and
funding the business.
Less than 50% of the investment required to set up a business will be
used in revenue-producing areas.
It cannot resultantly be viewed as being identical to the business model as
it does not influence all the six elements but more should be viewed as an
inner component of it.
Having a well-structured business model is necessary for the success of
any business adding value to a product or service for customers.
This will consequently include having a clear and tailored revenue model
which will ensure its financial health.
It provides the owners of the business with a necessary understanding of
cash flows as well as how it will generate revenue and maximize
profitability.
In addition to the business model, financial targets have to be forecasted
when creating an initial business plan whereby expected revenues and
profits will have to be presented and thus calculated through the use of
revenue models applied by the business.
2. EMERGING TRENDS IN E-BUSINESS

E-commerce helped to expand industries and telecommunications by enabling
small-scale businesses to flourish and spread internationally. This new form of
interaction has brought along many new trends, a few of which are given below:
1. DEALS
Online deals and coupons were always a trend.
Depending on certain seasons, anniversaries or holidays, businesses offer
their customers with irresistible deals and coupon codes.
Upon making your purchase, these deals will significantly lower the cost
of what you desire.
2. INNOVATIONS
From being a site that offers only information about hotels, or just offers
bookings, these have been consistently transformed and recreated.
Jovago.com offers its customers with not only the best deals on hotels
and destinations, but also detailed reviews and pictures about them.
3. ONLINE SALES
Massive department sales have been transferred online, with exclusive
online sales occurring that encourage online shopping.
Brands enjoy sample sales, distributing samples to their valued
customers!
4. GLOBAL CONSUMPTION
Through e-commerce, purchase of foreign goods has become easily
accessible.
This has resulted in more vendors featuring their products online that
facilitates further consumption and sales.
5. VIRTUAL ADVERTISING
Since shopping has become readily available online, so has the
advertisement of such goods.
Visual and video imagery is very popular, featured on television, Internet
and spread further through sponsorships.
2.1 IMPORTANT TRENDS
1. Travel was the first to go online
2. Brands are moving to creating their own online stores –Nokiashop, Puma,
Reebok, Samsung, VIP, Fast rack, etc
3. Fashion is No.1 Category – Top 3 categories all belong to fashion with 130
online stores [big & small] selling some fashion products. Apart from this 91
stores deal exclusively in fashion
4. Rise of exclusive online labels – Zovi, Shersingh
5. Lingerie is Big – Over 39 stores sell innerwear & lingerie
2.2 E-COMMERCE IS BOOMING IN INDIA:
The Great India E-commerce Bazar
3. E-GOVERNANCE
It is the transformation of government to provide Efficient, Convenient &
transparent services to the citizens & business through Information &
Communication Technologies (I.C.T.)
 The vision of National E-Governance plan is to make all government
services accessible to all people, through common service delivery outlets,
and ensure efficiency, transparency & reliability of such services at
affordable cost to realize the basic purpose of e-governance is to simplify
the processes for all i.e. government, citizens, businesses etc. at national,
state and local levels.
3.1BENEFITS OF E-GOVERNANCE
1. Reduced corruption
2. High transparency
3. Increased convenience
4. Growth in G.D.P.
5. Reduction in over all cost
6. Direct Participation of constituents
7. Expanded reach of government
The process is extremely complicated which revises the proper

arrangement of hardware, software, networking & indeed re-engineering of
all the process to facilitate better delivery of services.
3.2 TYPES OF INTERACTION IN E-GOVERNANCE

1. G2G (Government to Government)
2. G2C (Government to Citizen)
3. G2B (Government to Business)
4. G2E (Government to Employees)
EXPLANATION:
1. G2G (Government to Government):
 When the exchange of information & Services is with in the periphery of
the government, is termed as G2G interaction.
 This can be both horizontal (i.e. among various government entities) and
vertical (i.e., Between national, state & local government entities)
2. G2C (Government to Citizen):
 The interact b/w the government & general public is G2Cinteracton
 It enables citizens to get access to wide variety of public services.
 The citizens have the freedom to share their views and grievances on
government policies anytime, anywhere.
3. G2B (Government to Business):
 The interaction between government and Business.
 It aims at eliminating red- tapism (Behavior, practices, or attitudes)
 Saving time cost & establishes transparency in the business environment,
while interacting with government.
4. G2E (Government to Employees):
 The interaction between government and employees.
 ICT (Information & Communication Technology) helps in making the
interact b/w Govt., & Employees fast & efficient along with raising their
level of satisfaction
E-Governance can only be possible if the government ready for it. It is

not a one-day task and so, the government has to make plans and implement
then before switching to it.
3.3 SOME OF THE MEASURES INCLUDE

1. Investment in Tele communication infrastructure
2. Budget resources
3. Ensure security
4. Monitor assessment
5. Internet connectivity speed
6. Promote awareness among public regarding the important of e-business.
7. Support from all government department.
4. DIGITAL COMMERCE: (D-COMMERCE)
Digital commerce (D-commerce) is a type of e-commerce used by an

organization that delivers and sells products online. D-commerce is used by
companies that sell news, subscriptions, documents or any form of electronic
content, and the digital commerce company collects payments, handles
customer refunds and billing and manages other accounting functions for online
publisher clients.
 E-commerce involves commercial transactions done over internet.
Ecommerce is use of electronic transmission medium that caters for
buying and selling of products and services.
 E-business is conduct of business processes on the internet.
 E-business is superset of Ecommerce.
4.1 DEFINITION OF DIGITAL COMMERCE
Gartner, a leading technology research firm, defines digital commerce as:
“The buying and selling of goods and services using the Internet, mobile
networks and commerce infrastructure.”
It includes research and marketing activities, that support these
transactions, including the people, processes and technologies to execute
at all touch points throughout the customer buying journey.”
Digital commerce goes well beyond a simple online transaction.
It also includes research, development, marketing, servicing, selling and
buying products (the entire customer experience) for all devices and
platforms including desktops, mobile/tablets, social networks, etc.
HOW E-COMMERCE IS DIFFERENT FROM D-COMMERCE
D-Commerce is a type of e-commerce used by an organization that
delivers and saves products online.
D-Commerce is used by company that sell news, subscriptions, document
or any form of electronic content, D-Commerce company collect
payment, handle customer refund & building & manages other
accounting functions for online publisher clients.
Many times D-Commerce is also known as E-commerce. E-Commerce
involves commercial transaction done over internet.
E-business is the conduct of business process on the internet.
NOTE: Write about E-commerce Refer from Unit-1
5. MOBILE COMMERCE
INTRODUCTION:
As the number of mobile device users increases rapidly and exceeds that of
Personal Computers (PC) users by a large margin, conducting business and
services over these mobile devices, also known as mobile commerce.It is
becoming very attractive and is expected to drive the future development of
electronic commerce. Our world today is so much different from our previous
generations. With the invention of the internet, everything is fast and happens
online. Long gone are those days when people shop around 3-4 stores with the
total distance of a few kilometers deciding which product to buy. These days, all
considerations are done online before we made it to the physical store and most
of the products are just a few clicks away from us. The terms E-Commerce or
web store have been on the market for a while, but M-Commerce and mobile
shopping app etc,.are quite new comers. M-Commerce enables users to access
the internet without need to find a place to plug in.
5.1 DEFINITION OF MOBILE COMMERCE:

Mobile Commerce is defined as “Buying and Selling of goods and services
with the use of internet/cellular data via hand held wireless devices such as
phones, tablets etc.”
5.2 HISTORY:
The phrase mobile commerce was originally coined in 1997 by “KEVIN
DUFFEY” at the launch of the global mobile commerce forum, which mean “ to
delivery of electronic commerce capabilities directly into the consumers hand
,anywhere, via wireless technology.”PDA’S and cellular phones have become
so popular that many businesses are beginning to use mobile commerce as a
more efficient way to communicate with their customers.
The process of buying & selling of goods & services over internet through
handheld wireless devices i.e., mobiles, tablets, is called M-Commerce.
M-Commerce aims to serve all information and material needs of the
people in a convenient & essay.
5.3 DIFFERENCES BETWEEN E-COMMERCE AND M-COMMERCE:
E-COMMERCE M-COMMERCE
DEFINITON E-COMMERCE refers to the M-Commerce refers to
activities of buying and selling the process of buying and
products and services with the selling products &
use of electronic systems such services with the use of
as the internet. internet/cellular data via
wireless handheld
devices.
HISTORY 1970’S 1990’S
DEVICES USED Computers,laptops Wireless handheld
devices such as
cellphone, ipads, and
tablets.
CONNECTIVITY Smaller Large owing to the bigger
number of mobile users.
MOBILITY LIMITED Less limited because of
lighter weight & smaller
size leading to easier to
carry.
REACH Only at the places where the Broader due to its
electricity and the internet are portability
available.
USAGE Difficult because of a more Simple because all
complicated user interface and function have been
more functions. simplified.
COST Less costly as created on the More costly as mobile
web store plat form and there is app is required and there
a usage of internet. is a usage of cellular data
or internet.
5.4 PRODUCT AND SERVICES AVAILABLE OVER M-COMMERCE

1. Mobile money transfer
2. Mobile ticketing
3. Mobile vouchers, coupons and loyalty cards
4. Content purchase & delivery
5. Location based services
6. Information services
7. Mobile banking
8. Mobile purchase
9. Mobile browsing
10. Auctions
11. Mobile marketing and advertising
12. In – application mobile phone payments.
1. Mobile Money Transfer:

M-PESA, Airtel money, mobile ATM, (in foreign countries) monthly phone
bills.
2.Mobile Ticketing:
Tickets can be sent to mobile phones using a variety of technologies.
Example: IRCTC.
3. Mobile Vochers,Coupons and Loyalty Cards:
 Mobile ticketing technology can also be used for the distribution of
vouchers, coupons & loyalty cards.
 These are virtual tokens that are sent to the mobile phone.
 The customers represent virtual tokens at POS (POINT OF SALE)
receives discounts.
4. Content Purchase and Delivery:
 Sale of ring tones, wallpapers, games for mobile phones.
 The convergence of mobile phones, portable audio player, and video
players into a single device is increasing the purchase and delivery of full-
length music tracks and video.
 The download speeds available with 4G networks make it possible to buy a
movie on a mobile device in a couple of seconds.
5. Location Based Services:
 Local discount offers
 Local weather
 Tracking & monitoring of people
6. Information Services:
News, Stock quotes, Sports scores, financial records, Traffic reporting,
Emergency alerts, etc.
7. Mobile Banking:
WWW make transactions, such as purchasing stocks remitting money.
8. Mobile Purchase:
Catalog merchants (customers select the products from printed catalogs in the
store and fill out an order)
9. Mobile Browsing:
WWW (World Wide Web) browser on a mobile device customers can
shop online without having to be at their Personal Computer(PC).
10. Auctions:
Over the past three years, mobile reverse auction solutions have grown in
popularity. One -time purchase, however reverse auctions offer a high return
for the mobile vendor as they require the consumer to make multiple
transactions over a long period of time.
11. Mobile Marketing and Advertising:
The consumer gets a marketing message or discount coupon and within a
few seconds, make a decision to buy and go on to complete the sale.
Example: mom buy baby products online.
No need to search websites.
12. In-Application Mobile Phone Payments:
Payments can be made directly inside of an application running on a
popular smart phone operating system such as google as Google android.
Payment Methods:
Credit & debit cards, contactless payments, micro payments, store-value
cards etc.
6. STRATEGIES FOR BUSINESS OVER WEB

6.1 E-BUSINESS STRATEGY: A plan of action designed to achieve a
long-term or overall aim.
 Strategy provide Direction
 It acts like a guideline
 It set allocations of Resources
6.2 HOW TO DEVELOP E-BUSINESS STRATEGY:
1. Clearly define the problem/establish a hypothesis
2. Analyze and map your existing processes
3. Identify potential e-business solutions to improve your processes.
4. Calculate costs and benefits of each solution
5. Choose appropriate Solutions and develop an implementation plan.
6.3 RESOURCES FOR IMPLEMENTATION OF E-BUSINESS
1) Well designed model
2) Adequate computer Hardware (Computer, network & required no. of
connections for employees.
3) Technically qualified & responsive workforce (person who have
knowledge of network how to response to problem arises when we are
doing e-business)
 If yours is a profit company, your goal is to make money.

 The ultra-competitive nature of today economy, however is forcing
business to refocus money making strategies to the digital sphere in order
to attract more customers & continually grow their businesses.
 The advantages of moving your business to the web is endless.
 Fortunately, there are several resources there that can help you to start and
guide you in the right direction.
6.4 DIFFERENT STRATEGIES FOR BUSINESS OVER WEB
1. Create and grow an E-Commerce website

2. Use content marketing to solve problems for
your target market.
3. Develop systems for digital marketing
4. Create useful videos
5. Build a social media presence
1. CREATE AND GROW AN E-COMMERCE WEBSITE

 Most businesses have a website for marketing purposes; many have yet to
make a move to create an e-commerce site that allows them to sell their
products online.
 There is a tremendous amount of growth opportunity with e-commerce.
 The opportunity to reach many consumers is possible through e-commerce
website.
 Fortunately, with today’s technology, starting and growing an e-commerce
website is as easy as ever.
 Easy to create websites make the process of developing a website s simple.
 They have guides and resources that allow even novice internet users to
easily create a professional looking website that can generate profits for
their business.
2. USE CONTENT MARKETING (digital marketing)
 One of the most popular ways for businesses to earn customers online is by
utilizing content marketing to solve problems for their target market.
 If you are unfamiliar with content marketing, it can be described simply as
a digital marketing strategy that involves creating and sharing online
content.
 If you view yourself as an authority in your industry and understand the
problems that your target customers face, this can be a huge opportunity to
develop your brand & earn customers.
 Content Marketing can be done in different ways.
 Some companies have created blogs while others have focused on creating
informational products such as e-books, white papers, how to add tutorial
videos and intensive guides.
3. DEVELOP SYSTEMS FOR DIGITAL MARKETING
 From email and content marketing to social media, there are several
different types of digital marketing strategies for businesses.
 Developing a system for your digital marketing strategies allows you to
continually improve your strategies and creates consistency in handling
marketing.
 This is essential to earn trust in customers as they are able to see that you
are consistently able to provide them with quality content.
4. CREATE USEFUL VIDEOS
 Creating videos has also become a popular strategy for online marketers.
 According to video Brewery, 90% of online shoppers find that video is
helpful in making their purchasing decisions.
 While this is a fairly new concept for many business owners, it is an
tremendous opportunity to get ahead of the competition, especially if you
are competing locally.
 Videos can be created for several purposes.
 While some businesses will use tutorial and how –to-videos in their content
marketing strategy
 Showing your product in use allows customers the chance to picture
themselves using that product, therefore increasing their willingness to buy.
 Even if you have no idea how to create online videos, there is an
abundance of information online that can help you with the process.
 Online services like flixpress also make it easy for you to create several
different types of video even if you are unsure of how to get started.
5. BUILD A SOCIAL MEDIA PRESENCE
 The impact of a social media presence on earning customers online has
been debated since platforms like facebook, whatsapp, Twitter become
household names on the web.
 Creating a social media presence can be a difficult task, and it requires
consistency & a plan to experience success.
 Entrepreneur provides a lot of good information about choosing the right
platform for your business and once again, there is plenty of information
online about how to continually increase your social media following.
7. INTERNET BASED BUSINESS MODELS
1. Services
2. Physical Products
3. Information products
4. Affiliate Income
5. Software Products
6. Membership
1. SERVICES:
INTERNET SERVICES allows us to access huge amount of information
such as text, graphics, sound and software over the internet. Following diagram
shows the four different categories of Internet Services.
1. COMMUNICATION SERVICES
There are various Communication Services available that offer exchange of
information with individuals or groups. The following table gives a brief
introduction to these services:
S.N. Service Description
1 Electronic Mail
Used to send electronic message over the internet.
2 Telnet
Used to log on to a remote computer that is attached to internet.
3 Newsgroup
Offers a forum for people to discuss topics of common interests.
4 Internet Relay Chat (IRC)

Allows the people from all over the world to communicate in real time.
5 Mailing Lists
Used to organize group of internet users to share common information
through e-mail.
6 Internet Telephony (VoIP)

Allows the internet users to talk across internet to any PC equipped to
receive the call.
7 Instant Messaging
Offers real time chat between individuals and group of people. Eg.
Yahoo messenger, MSN messenger.
2. INFORMATION RETRIEVAL SERVICES

There exist several Information retrieval services offering easy access to
information present on the internet. The following table gives a brief
introduction to these services:
S.N. Service Description
1 File Transfer Protocol (FTP)

Enable the users to transfer files.
2 Archie
It is updated database of public FTP sites and their content. It helps to
search a file by its name.
3 Gopher
Used to search, retrieve, and display documents on remote sites.
4 Very Easy Rodent Oriented Netwide Index to Computer Achieved

(VERONICA)
VERONICA is gopher based resource. It allows access to the
information resource stored on gopher’s servers.
3. WEB SERVICES
Web services allow exchange of information between applications on the web.
Using web services, applications can easily interact with each other.
The web services are offered using concept of Utility Computing.
4. World Wide Web (WWW)
WWW is also known as W3. It offers a way to access documents spread over
the several servers over the internet. These documents may contain texts,
graphics, audio, video, hyperlinks. The hyperlinks allow the users to navigate
between the documents.
Video Conferencing
Video conferencing or Video teleconferencing is a method of communicating
by two-way video and audio transmission with help of telecommunication
technologies.
Modes of Video Conferencing
POINT-TO-POINT
This mode of conferencing connects two locations only.
MULTI-POINT
This mode of conferencing connects more than two locations through Multi-
point Control Unit (MCU).
 Services refer to solving the problems of web customer.

 Fastest way to get started online
 Represents time for money exchange
 You don’t need a big list to get clients
2. PHYSICAL PRODUCTS:
 You can tap into a network of buyers through sites like eBay.
 You can create your own products or have some one else drop-ship them
for you.
3. INFORMATION PRODUCTS:
 Excellent way to leverage your time & help many people by creating your
product once.
 Very low cost to create & deliver high return on time investment.
 Anyone can turn their expertise, into an information product
4. AFFLIATE INCOME:
 You get a percentage of a sale for connecting the buyer & the seller.
 Can be as little as a few cents or as much as thousands of dollars.
 It helps to build your community, but it can be great way to get started too.
5. SOFTWARE PRODUCTS:
 Whether you program it yourself or hire some one to develop software, it
can be sold many times.
 Software can be iphone/ipad apps, desktop applications, software as a
service.
6. MEMBERSHIP:
 Recurring payments for access to new materials, software coaching etc.
 Can also be a yearly membership for access to deals or members only
privileges.
Believe in yourself and the world will be at your

feet. ― Swami Vivekananda
SEMESTER-4
Objective: The course imparts undertaking of the concepts and various application issues of e-
business like Internet infrastructure, security over internet, payment systems and various online
strategies for e-business.

Encryption, Cryptography, public key and private key Cryptography digital signatures,
digital certificates, security protocols over public networks : HTTP, SSL, Firewall as
security control, public key infrastructure (PKI) For Security.
3. Electronic payment system: Concept of money, electronic payment systems, types of
electronic payment systems, smart cards and electronic payment systems, infrastructure
issues in EPS, Electronic fund transfer.
4. E-business applications and strategies: Business models & revenue models over
5. E –business infrastructure and e- marketing: Hard works system software
Text books:
 Dave Chaffey: e-business & e-commerce management- Pearson.
 e- commerce- e-business: Dr.C.S.Rayudu, Himalaya.
References:
 Whitley, David (2000) ,e-commerce strategy ,Technologies and applications.TMH.
 Schneider Gary P. and Perry, James T(1ST edition 2000) Electronic commerce, Thomson
Learning.
 Bajaj, Kamlesh K and Nag, Debjani (1st edition 1999) ,e- commerce, The cutting edge of
business, TMH Publishing company
UNIT-5 E-BUSINESS INFRASTRUCTURE AND E-MARKETING BALAJI INSTITUTE OF IT & MANAGEMENT Page 1
UNIT-5
E-BUSINESS INFRASTRUCTURE AND E-MARKETING
1. HARDWARE AND SOFTWARE SYSTEM INFRASTRUCTURE

Infrastructure refers to the combination of hardware and software applications used
to deliver services to workers, partners and customer within the e-business.
1.1 INFRASTRUCTURE FOR E-BUSINESS:

E-business infrastructure: The architecture of hardware, software, content and
data used to deliver e-business services to employees, customers and partners.
Finally, infrastructure can also be considered to indude the methods for

publishing data and documents accessed through e-business applications.
It is also important that the e-business infrastructure and the process of
reviewing new technology investments should be flexible enough to support
changes required by the business.
1.2 DIFFERENT COMPONENTS OF E-BUSINESS ARCHITECTURE
Figure-3.1 summarizes the different components of e-business architecture which
are related to each other. The different components can be conceived as different
layers with defined interfaces between each layer. The different layers can best
be understood in relation to a typical task performed by a user of an e-business
system. For example, an employee who needs to book a holiday will access a
specific human resources application or program that has been created to enable
the holiday to be booked (Level I in Figure 3.1).
This application will enable a holiday request to be entered and will forward
the application to their manager and human resources department for
approval.
To access the application, the employee will use a web browser such as
Microsoft Internet Explorer, Mozilla Firefox or Google Chrome using an
operating system such as Microsoft Windows XP or Apple OS X (Level II in
Figure 3.1).
This systems software will then request transfer of the information about the
holiday request across a network or transport layer (Level III in Figure 3.1).
The information will then be stored in computer memory (RAM) or in long-
term magnetic storage on a web server (Level IV in Figure 3.1).
The information itself which makes up the web pages or content viewed by
the employee and the data about their holiday request are shown as a
separate layer (Level V in Figure 3.1), although it could be argued that this
is the first or second level in e-business architecture.
1.2.1 ALTERNATE FIVE-LEVEL INFRASTRUCTURE MODEL
Kampas (2000) describes an alternative five-level infrastructure model

referred as 'the information system function chain':
1. Storage/physical: Memory and disk hardware components (equivalent to

Level IV in Figure 3.1).
2. Processing: Computation and logic provided by the processor (processing
occurs at Levels I and II in Figure 3.1).
3. Infrastructure: This refers to the human and external interfaces and also the
network, referred to as `extra structure. (This is Level III in Figure 3.1,
although the human or external interfaces are not shown there.)
4. Application/content: This is the data processed by the application into
information. (This is Level V in Figure 3.1.)
5. Intelligence: Additional computer-based logic that transforms information
to knowledge.
1.3 ELEMENTS OF E-BUSINESS INFRASTRUCTURE

Infrastructure capability has key elements, such as:
1. Portability: Can this component be run on a different hardware?
2. Interoperability: Does this component work with other hardware and/or
software?
3. Scalability: Can this component handle increasing work load such as more
users or run time?
4. Maintainability: How often does this component require service? How
often does it break? Once broken, how easy is it to fix ?
5. Security: What are the assets we are trying to protect? Who are we trying to
protect them from? How can they be compromised? What is the maximum
possible loss? How can we mitigate this risk? Etc.
Consequently, infrastructure decisions try to “optimize” capability by balancing

the trade-offs associated with these elements.
 The infrastructure of business should consists of the following:
 Have web enabled applications for order entry, inventory, financials etc.
 Ease of use; operate on different browsers and versions, security settings etc.
 Scale from the smallest to largest customer.
 Provide and Integrate workflow with the applications.
This affected the entire infrastructure, from hardware to software. We were in

the business of providing competent technology to our clients. We would be
wasting precious money, time and energy building a capability in applications
development. We could not possibly get all processes automated in a reasonable
amount of time; we had to buy off-the shelf applications and components.
1.4 HARDWARE
 We need to balance the capability, price, availability of hardware devices
within the cost of operations. We decided to buy and co-locate our hardware
at a hosting company.
 This gave us the benefit of getting the hardware of our choice and 24x7
monitoring of devices at a variable cost.
1.5 SOFTWARE
 We had to balance a database (software) that could scale from the smallest
to the largest at a reasonable price.
 The other factors which influenced our decision were: Component
interoperability, compatibility with Internet Explorer (70% market share),
ease of development, availability of talent, future support and growth etc.
 Microsoft Visual Studio toolset met all these needs.
1.6 SUMMARY
A good infrastructure is critical to the success of an e-Business.
Infrastructure must be viewed as part of the overall picture, not a standalone
component. It must be tightly coupled with all other components such as strategy,
processes and organization. However, infrastructure decisions are sometimes taken
in isolation.
That results in technology for technology’s sake. Business requirements should
drive infrastructure selection. A complete and thorough analysis that weighs in key
factors such as portability, scalability, existing skills, future direction and cost
should result in an effective infrastructure that is the best one for that situation.
2. ISP (Internet Service Provider)/IAP (Internet Access
Provider)
An Internet service provider (ISP) is a company that provides Internet
access to customers. Data may be transmitted using several technologies,
including dial-up, DSL, cable modem, wireless or dedicated high-speed
interconnects. Typically, ISPs also provide their customers with the ability to
communicate with one another by providing Internet email accounts, telephone and
television service. The services and service combinations may be unique to each
ISP.
2.1 OVERVIEW
Internet service providers (ISPs) , first began in late 1980s and early 1990s.
ISP connect customers to customers of other service providers through networks.
Often, internet service providers are companies that provide telecommunication
services including data communication access and telephone connection. The
majority of telephone companies now function as internet access providers . IPSs
may be commercial, non-profit, privately owned or community owned.
2.2 TYPES OF ISPs

1. ACCESS ISPs: Employ a variety of technologies to facilities internet
connection to customers. These technologies may include broadband or dialup.
The broadband connection comprises of cable fiber optic service (FiOS), DSL
(Digital subscriber line) and satellite. A number of access providers also provide
emails.
2. MAILBOX ISPs: Offer email (mailbox) hosting services and email servers to
send, receive and store email. Many mailbox ISPs are also access providers.
3. HOSTING ISPs: Offer File Transfer Protocol (FTP), web hosting services,
virtual machines clouds and physical servers.
4. TRANSIT ISPs: Provide large amounts of bandwidth needed to connect hosting
ISPs.
5. VIRTUAL ISPs (VISP): Purchase services from other ISPs to allow customers
to internet access.
6. FREE ISPs (FREE NETS): Provide free service and often display
advertisements while users are connected.
EXAMPLES OF ISPs
 MTN
 Airtel
 UTL
 Infocom
 Smile
 Roke telecom Etc
2.3 FACTORS TO CONSIDER WHILE CHOOSING ISP

 Bandwidth (speed)
 Cost (setup and service fee)
 Availability (reach)
 Reliability (down time)
 Convenience (mobility) etc.,
2.4 SERVICES OF ISPs
 Internet access
 Domain name registration
 Domain hosting
 Dial-up access
 Leased line access
2.5 TYPES OF LINK TO ISP

1. WIRELESS
Radio frequency bands are used in place of telephone or cable networks. One of
the greatest advantages of wireless internet connections is it can be accessed from
any location within networks coverage. Wireless connections are made possible
through the use of a modem which picks up internet signals and sends them to
other devices.
2. MOBILE PHONES
Many cell phone and smart phone providers offer voice plans with internet access.
Mobile internet connections provide good speeds and allow you to access the
internet.
3. HOTSPOTS
Hotspots are sites that offer internet access over a wireless local area network
(WLAN) by way of a router that then connects to an internet service provider.
Hotspots utilize WI-FI technology which allows electronic devices to connect to
the internet or exchange data wirelessly through radio waves
4. BROADBAND
This high-speed internet connection is provided through either cable or telephone
companies. Broadband internet uses multiple data channels to send large quantities
of information. The term broadband is shorthand for broad bandwidth. Broadband
internet connections such as DSL (digital subscriber line) and cable are considered
high-bandwidth connections.
5. SATELLITE
In certain areas where broadband connection is not yet offered, a satellite internet
option may be available. Similar to wireless access, satellite connection utilizes a
modem.
2.6 EQUIPMENT FOR CONNECTING TO ISP

 Mobile phone
 Modem
 Satellite receiver
 Telephone line (land line)
 Fiber optics link
3. MANAGING E-BUSINESS APPLICATIONS INFRASTRUCTURE
E-BUSINESS INFRASTRUCTURE: The architecture of hardware, software,
content and data used to deliver e-business services to employees, customers
and partners.
3.1 INTRODUCTION
Defining an adequate e-business infrastructure is important to all companies.
E-business infrastructure refers to the combination of hardware such as servers and
client PCs in an organization, the network used to link hardware and the software
applications used to deliver services to workers within the e-business and also to its
partners and customers. Infrastructure also includes the architecture of the
networks, hardware and software and where it is located. Finally, infrastructure
can also be considered to include the data and documents accessed through e-
business applications.
It is also important that the e-business infrastructure and other new
technology investments should be flexible enough to support changes required by
the business to compete effectively. For example, for the media there are many
new technologies being developed which were described from 2005 onwards as
web 2.0 and IPTV (television delivered over the broadband internet).
3.2 MANAGING E-BUSINESS APPLICATIONS INFRASTRUCTURE:

Management of e-business applications infrastructure concerns delivering the right
applications to all users of e-business services.
The issue involved, concern of IS (Information System) manager to deliver
access to integrated applications and data that are available across the whole
company.
Traditionally businesses have developed applications silos (a part of a
company that does not communicate with, understand, or work well with other
parts) of information as depicted in figure 3.10 a. This shows that these silos
may develop at three different levels.
1. There may be different technology architectures used in different functional
areas.
2. There will also be different applications and separate databases in different
areas and
3. Processes or activities followed in the different functional areas may also be
different.
These application silos are a result of decentralization or poorly controlled
investment in information systems with different departmental managers
selecting different systems from different vendors.
This will effect more cost more to purchase applications from separate
vendors, and also it will be more costly to support and upgrade.
Problems can also occur at tactical and strategic levels.
For example, if a company is trying to analyze the financial contribution of
customers, perhaps to calculate lifetime values, some information about
customer purchases may be stored in a marketing information system, while
the payments data will be stored in a separate system within the finance
department.
It may prove difficult or impossible to reconcile these different data sets.
To avoid the problems of a fragmented (individual) application infrastructure,
companies attempted throughout the 1990s to achieve the more integrated
position shown in figure 3.10(b).
To achieve this, many companies turned to enterprise resource planning
(ERP) vendors such as SAP, Baan, PeopleSoft and oracle.
The approach of integrating different applications through ERP is entirely
consistent with the principal of e-business, since e-business applications must
facilitate the integration of the whole supply chain and value chain.
It is noteworthy that many of the ERP vendors such as SAP have
repositioned themselves as suppliers of e-business solutions.
The difficulty for managing e-business infrastructures is that there is not, and
probably never can be, a single solution of components from a single
supplier.
To gain competitive edge, companies need to turn to solutions from innovators.

for example, support new channels such as WAP or provide knowledge
management solutions or sales management solutions.
If this is not available from their favored current supplier, do they wait until
these components become available or do they attempt to integrate new
software into the application?
Thus managers are faced with a precarious balancing act between
standardization or core product and integrating innovative systems where
applicable.
ERP systems were originally focused on achieving integration at the
operational level of an organization. Solutions for other applications such as
business intelligence in the form of data warehousing and data mining tended
to focus on tactical decision making based on accessing the operational data
from within ERP systems.
Knowledge management software also tends to cut across different levels of
management.
4. What is Electronic-Marketing?
E-marketing (Electronic marketing) also called internet marketing, web
marketing, online marketing, Digital marketing.
DEFINITION:
 E-marketing is a process of marketing a product or service using the
internet.
 E-marketing not only includes marketing on the internet but also includes
marketing done via e-mail & wireless media, social media, websites etc.,
 It includes a range of technologies to help connect business to their
customers.
4.1 MERITS OF E-MARKETING:
1. Cost effective & faster
2. Global boundary independent
3. Increased customer out reach
4. Brand awareness
5. Increased ROI(Return On Investment)
1. Cost effective & faster:
 E-marketing utilizes the most inexpensive channels of promotional
companies such as social media (facebook, instagram, YouTube etc.,) Even
though creating website & e-mail marketing, again both of which are
absolutely inexpensive as compared to the traditional marketing.
 Also these channels help reach out to the end customer at a much faster rate
than traditional marketing.
2. Global boundary independent:
Since the internet is available globally and these days even easily & freely
accessible, the scope of e-marketing has also widened along with it. So, E-
marketing carried out without any limitations on the geophysical boundary.
3. Increased customer outreach:
With the help of digital medium, it has become very easier to reach out to a
wider target audience in a very shorter span of time.
4. Brand awareness:
E-marketing also helps your business to be recognized to worldwide with the
help of its easier promotional strategies & creating brand awareness is
comparatively much easier than traditional marketing concepts.
5. Increased ROI (Return On Investment)
 E-marketing helps in harnessing best strategies in order to generate the
maximum ROI from your business
 It is possible because of its low investments & wider outreach to the target
audience.
However big or small the business is, e-marketing can help it grow and make
more profits with a rather less investment as compared to the traditional concepts
of marketing. Online marketing is basically related with e-commerce websites like
Amazon, flip kart etc., We can also include e-advertising in e-marketing.
4.2 WEB PRESENCE GOALS:
1. Attracting visitors to websites
2. Make site interesting enough so, visitor stay and explore
3. Convincing visitors to follow site link
4. Creating an impression with desired image
5. Building a trusting relationship with visitors
6. Reinforcing positive images that the visitor might already have
7. Encouraging visitors to return to site
8. Uniqueness of web features
9. Meeting with needs of web-visitors.
4.3 WHAT IS ONLINE MARKETING?
 Online marketing is the marketing of products or services over the internet
& it ties together creative and technical aspects of the internet, including
design, development, advertising and sale.
 Online marketing is used by companies selling goods & services directly to
consumers as well as those who operate on a business to business model.
4.3.1TYPES OF ONLINE MARKETING:
E-MAIL MARKETING
SOCIAL MEDIA MARKETING
DIGITAL MARKETING
BLOGGING
PAY PER CLICK MARKETING
VIRAL MARKETING
1. E-MAIL MARKETING:
 E-mail marketing is promoting products through the use of e-mail.
 There are two main ingredients to an effective email marketing campaign.
 They are to build a large list of people you can email and to write great
emails.
 The emails should be packed with free value and they should move people to
buy what you are trying to sell.
2. BLOGGING:
A blog is a discussion or informational website published on the World Wide
Web consisting of discrete, often informal diary-style text entries.
 Yet another but important and crucial marketing trend that has brought a
huge aberration in our society.
 Blogger was launched in 1999 by three friends. Blogging as an passionate
marketing tool has really blossomed in the last some years.
 Businesses, companies and even superstar now use blogging systems for
huge promotion.
3. PPC (PAY PER CLICK) MARKETING:
 You have to pay for PPC ads.
 You target certain words and then when those words are searched for on a
search engine such as Google your ad will appear.
 But you do have to pay every time your ad is clicked on.
 You need to make sure you do your homework and find out how to
effectively use PPC.
 Otherwise you can easily lose a lot of money in a short amount of time.
4. SOCIAL MEDIA MARKETING:
 Social media marketing is very popular right now and it’s only getting more
popular.
 You can tap into that popularity by using social media to sell your products.
 Just make sure you don’t SPAM people .In fact, you shouldn’t use any social
media to directly sell anything.
 Just use social media to direct people to other sites where you can then hit
them with a sales pitch.
5. DIGITAL MARKETING:
 With regards to the internet, this is the promoting of brands using all forms
of online digital advertising channels to reach consumers.
 This includes video channels, internet, radio, mobile phones, display or
banner ads, digital outdoors and any other form of digital media.
6. VIRAL MARKETING: (WORD OF MOUTH)
 Marketing techniques that use social network to produce an increase in
brand awareness or achieve other marketing objectives (such as product
sales) through self-replicating viral processes.
 It can be word-of-mouth delivered or enhanced by the network effects of the
internet. Viral promotions may take the form of video clips, interactive flash
games, e-books, images, or even text messages.
AIDA MODEL: (Awareness Interest Desire Action)
1. Awareness: Initial point where your brand and/or business is recognized and
acknowledged.
2. Interest: Generating thoughts and discussion about your brand.
3. Desire: Communicate your messages through the use of social media and email
marketing.
4. Action: The stage where -the conversion is complete, and back to the “interest”
stage to retain them. Your website is responsible for this stage.
5. E-MARKETING PLANNING:
Seven step E-marketing plan:
Outline:
A seven step E- marketing plan
1. Situation analysis
2. E-marketing strategic planning
3. Objectives
4. E-marketing strategy
5. Implementation plan
6. Budget
7. Evaluation plan
STEP-1: SITUATION ANALYSIS:-It involves the analysis of current situations
through different techniques.
As marketing environment is ever changing, Environment analysis is very
important that reveals
 STRENGTH
 WEAKNESS
 OPPORTUNITY
 THREATS
FACEBOOK SWOT
STEP-2 E-MARKETING STRATEGIC PLANNING:

Strategic planning: Determining the fit between company’s objectives, resources
and skills with changing marketing opportunities.
SEGMENTATION & TARGETING:
 For segmentation & Targeting Marketers conduct market opportunity
analysis (MOA).
 MOA include :
1. Demand Analysis: - For Identifying segments
2. Supply Analysis: - For forecasting segments profitability.
3. Find competitive advantage and then target the segment.
FACEBOOK TARGET MARKET:-
1. AGE: - A study done by ping dam showed that 65% of users on face book are
35 or older.
The average age is just over 40 with the largest group aged 45 to 54 only 14% of
face book users are under the age of 24.
2. GENDER AND EDUCATION:- 60% of face book users are female and 40%
are male. Also, 57% have completed some sort of college education; 24%
completed either a bachelors or graduate degree. A new research survey found that
63% of male were activity on face book; 70% of female internet users actively use
face book.
3. LOCATION: - Face book has a social presence in 137 countries-and it beats out
all other social networks in 127 of those countries. Us has the most presence on
face book. Taiwan has a larger % of the population on face book (56%).
DIFFERENTATION & POSITIONING STRATEGY:-
How it will differentiate its products/ service in a way that provide benefit to both
company and customers.
Based on the differentiation strategy company position itself that what will be the
desired image for the brand.
e.g. F.B desired image was to retain its position in the market and achieve
Competitive advantage over the competitors.
STEP-3 OBJECTIVES
Objective e-marketing are formulated which includes
 Task (what is to be accomplished),
 Measurable quantity (how much),
 Time frame (by when).
Most e-marketing plans aim to accomplish multiple objectives such as:
 Increase market share,
 Increase sales revenue,
 Reduce costs,
 Improve databases,
 Achieve customer relationship management goals,
 Improve supply chain management.
STEP-4 E-MARKETING STRATEGY

Based on the objectives Marketers craft strategies regarding the 4ps:
 Offer (product)
 Value (price)
 Distribution (place)
 Communication (promotion)
STEP -5 IMPLEMENTATION PLAN

How to accomplish the objectives through effective tactics Before check the right
marketing organization is in place
e.g. F.B before offering advertisement services checked
 Staff
 Department structure
 Application Service providers and
 Other outside firms
Right combination will help the marketers to implement & meet the objectives.
STEP-6 BUDGET
Identify the forecasted returns from investment and match with the forecasting
cost. Following costs need to be forecast:
 Technology cost
 Site design cost
 Salaries
 Other site development expenses
 Miscellaneous
STEP-7 EVALUATION PLAN

Once the plan is implemented it is then evaluated Evaluation techniques:
o ROI
o Web analytical tools
E.g. Face book page
6. TACTICS
(An action or strategy carefully planned to achieve a specific goal)
Marketing tactics to implement strategies and objectives are traditionally based
around the elements of the marketing mix. One approach is to use customer-
driven tactics that affect both the design & services provided by an e-commerce
site. A further approach to structure e-marketing tactics is that of Customer
Relationship Management (CRM).
 The marketing-mix-the 4p’s of Product, Price, Place and Promotion
originally proposed by Jerome McCarthy (1960) price is used as an
essential part of implementing marketing strategy by many practitioners.
 The 4p’s have been extended to the 7ps by including three further elements
that better reflect service delivery people, process, and physical evidence.
 E-commerce provides new opportunities for the marketer to vary the
marketing mix, so it is worthwhile outlining these.
 However, it should be noted that many marketers now consider it as only
one tool for developing tactics and other approaches such as branding or
CRM perspective can be used to develop tactics, particularly for marketing
communications.
MARKETING MIX: - According to NEIL H.BORDEN the marketing mix is the
set of marketing tools the firm uses to pursue its marketing objectives in the
target market.
The 7ps of Marketing:-
The 7ps are a set of recognized marketing tactics, which you can use in any
combination to satisfy customers in your target market.The 7ps are controllable,
but subject to your internal and external marketing environments.Combining these
different marketing tactics to meet your customers needs and wants is known as
using a tactical marketing mix.
1. Product
Product refers to what you are selling, including all of the features, advantages and
benefits that your customers can enjoy from buying your goods or services. When
marketing your product, you need to think about the key features and benefits of
customers want or need, including (but not limited to) styling, quality, repairs, and
accessories. You can use research and development to inform the development of
new products in your business.
2. Price
This refers to your pricing strategy for your products and services and how it will
affect your customers. You should identify how much your customers are prepared
to pay, how much mark-up you need to cater for overheads, your profit margins
and payment methods, and other costs. To attract customers and retain your
competitive advantage, you may also wish to consider the possibility of discounts
and seasonal pricing.
3. Promotion
These are the promotional activities you use to make your customers aware of your
products and services, including advertising, sales tactics, promotions and direct
marketing. Generally these are referred to as marketing tactics.
4. Place
Place is where your products and services are seen, made, sold or distributed.
Access for customers to your products is key and it is important to ensure that
customers can find you.
You can set yourself apart from your competition through the design of your retail
space and by using effective visual merchandising techniques. If you are not a
retail business, place is still an important part of your marketing. Your customers
may need a quick delivery turnaround, or want to buy locally manufactured
products.
If you are starting a new business, finding the right business location will be a key
marketing tactic.
5. People
People refer to the staff and salespeople who work for your business,
including yourself.
When you provide excellent customer service, you create a positive experience for
your customers, and in doing so market your brand to them. In turn, existing
customers may spread the word about your excellent service and you can win
referrals. Give your business a competitive advantage by recruiting the right
people, training your staff to develop their skills, and retaining good staff.
6. Process
Process refers to the processes involved in delivering your products and services to
the customer. It is also about being 'easy to do business with'.
Having good process in place ensures that you:
 repeatedly deliver the same standard of service to your customers
 Save time and money by increasing efficiency.
7. Physical evidence
Physical evidence refers to everything your customers see when interacting with
your business. This includes:
 The physical environment where you provide the product or service
 The layout or interior design
 Your packaging
 Your branding.
Physical evidence can also refer to your staff and how they dress and act.
Consider how your store's layout, fixtures and signage can build your brand and
increase your sales.
7. MARKETING STRATEGY
STRATEGY: - A Strategy is a plan of action to achieve long term goals or aim of
an organization.
1. Market Scope strategy

2. Market Entry Strategy
3. Product Strategy
4. Promotion Strategy
5. Distribution Strategy
6. Pricing Strategy
1. MARKET SCOPE STRATEGY

a. Single market strategy: Concentration of efforts in a single segment
b. Multi market strategy: Serving several distinct markets
c. Total market strategy: Serving the entire spectrum of the market by selling
differentiated products to different segments in the market.
2. MARKET ENTRY STRATEGY

This strategy decides how a company enters in a particular market full with
consumers.
a. First in strategy: Entering the market before all others
b. Early entry strategy: Entering the market in quick succession after the
leader
c. Laggard entry strategy: Entering the market toward the tail end of growth
phase or during maturity phase.
3. PRODUCT STRATEGY
Product is main part in any organization.
a. Product positioning strategy: - positioning the product in the mind of a
customer stand out of the crowd.
b. Product re-positioning strategy: - After positioning the product, you have
to review whether it is working or not & fake the corrective steps to newly
or re-positioning the product in the mind of the customer.
c. Product scope strategy: - If deals with the marketing mix of the company.
d. Product design strategy: - If deals with the degree of strategy dilation of c
product.
e. New product strategy: - In this strategy company brings the new version of
its previous products.
4. PROMOTION STRATEGY :-
 Promotion strategy tells how you will communicate your marketing
message to prospective customers.
 In your marketing plan, provide a complete outline of your promotion
strategy, including a detailed description of your target customer, your
market area, your marketing message, the creative approach you will use to
convey your message & advance your brand image, the media channels you
will employ to reach prospective customers and the budget you have
allocated to get the job done.
5. DISTRIBUTION STRATEGY :-
 This strategy includes the results of your assessment in the company
description portion of your business plan.
 In your marketing plan-and briefly in the marketing strategy section of your
business plan-described how distribution supports your marketing goals &
objectives.
Distributor Strategy Checklist
a. Will you introduce new distribution or delivery systems-such as home
delivery, subscription deliver, free deliver to volume customers, free
shipping or guaranteed returns with online purchases, and son –to increase
sales, serve customers, or gain advantage over competitors.
b. Can you sales by adding new distribution channels, such as online sales,
distributor relationship, or new retail outlets.
c. Would your business benefit from business partnerships that allow you to
achieve off-premise sales outlets in other retail setting.
d. Other distribution strategy considerations.
6. PRICING STRATEGY
One of the decisions most crucial to business success. Pricing strategy refers to
method companies use to price their products or services. Almost all companies,
large or small, base the price of their products and services on production, labor
and advertising expenses and then add on a certain percentage so they can make a
profit. There are several different pricing strategies, such as penetration pricing,
price skimming, discount pricing, product life cycle pricing and even competitive
pricing.
A GOOD LEADER TAKES A LITTLE MORE THAN HIS SHARE OF

THE BLAME, A LITTLE THAN HIS SHARE OF HIS CREDIT
E-BUSINESS (17E00402) EXPECTED QUESTIONS
UNIT-1
1. Bring out the differences between a traditional market and e-markets.
2. What is e-business and e-commerce and explain the difference between e-
business and e-commerce?
3. Discuss various e-commerce models.
4. Explain electronic data, interchange and electronic data interchange
process.
UNIT-2
1. Explain the brief

a. HTTP
b. SSL
c. Fire wall
d. PKI
2. Discuss
a. encryption
b. cryptography (public key and private key with suitable figures)
3. Explain digital signatures and digital certificates.
UNIT-3
1. What is EPS? What are the types of EPS?
2. SMART cards
3. Explain briefly electronic fund transfer (EFT)
UNIT-4
1. Discuss business model and revenue models over internet?
2. What are the emerging trends in e-business?
3. Explain in brief
a. e-governance
b. digital commerce
c. mobile commerce
UNIT-5
1. What are e-marketing, e-marketing planning, tactics and strategies?
2. Explain the concept of e-business infrastructure (hardware and software
infrastructure)
3. ISP.
THE BEST PREPARATION FOR TOMORROW IS DOING YOUR BEST

TODAY
BALAJI INSTITUTE OF IT & MANAGEMENT, KADAPA SEMESTER-4

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BALAJI INSTITUTE OF

I.T AND MANAGEMENT

Name of the Faculty: L.NIKHILA

Units covered: half of 3rd ,4th & 5th UNITS

1. Introduction to e-business : Electronic business, Electronic commerce, difference

UNIT-3 ELECTRONIC PAYMENT SYSTEM BALAJI INSTITUTE OF IT AND MANAGEMENT Page 1

 It is a plastic card embedded with Micro processor that has customers

UNIT-3 ELECTRONIC PAYMENT SYSTEM BALAJI INSTITUTE OF IT AND MANAGEMENT Page 2

UNIT-3 ELECTRONIC PAYMENT SYSTEM BALAJI INSTITUTE OF IT AND MANAGEMENT Page 3

USES OF SMART CARD

 Smart card stores patient’s medical history, instantly access the

 Smart card helps in insurance processing.

 In addition, smart cards enable compliance with government initiatives,

3) ID VERIFICATION & ACCESS CONTROL

 All U.S. government facilities and many corporations have incorporated

UNIT-3 ELECTRONIC PAYMENT SYSTEM BALAJI INSTITUTE OF IT AND MANAGEMENT Page 4

5) COMPUTER & NETWORK SECURITY

 Understanding that Public Key Infrastructure (PKI)-enhanced security is

 Using smart cards, users can be authenticated and authorized to have

HOW SMART CARD WORKS

SMART CARD CARD READER COMPUTER

UNIT-3 ELECTRONIC PAYMENT SYSTEM BALAJI INSTITUTE OF IT AND MANAGEMENT Page 5

CREDIT CARD DEBIT CARD SMART CARD

UNIT-3 ELECTRONIC PAYMENT SYSTEM BALAJI INSTITUTE OF IT AND MANAGEMENT Page 6

5. ELECTRONIC PAYMENT SYSTEM: Refer 2nd topic in unit-4

 For electronic payments to be successful there is a need to have reliable

UNIT-3 ELECTRONIC PAYMENT SYSTEM BALAJI INSTITUTE OF IT AND MANAGEMENT Page 7

7. ELECTRONIC FUND TRANSFER (EFT)

7.1 VARIOUS MODES OF EFT IN INDIA

1. NEFT – NATIONAL ELECTRONIC FUNDS TRANSFER

UNIT-3 ELECTRONIC PAYMENT SYSTEM BALAJI INSTITUTE OF IT AND MANAGEMENT Page 8

2. RTGS – REAL TIME GROSS SETTLEMENT

7.3 EFT ACT

UNIT-3 ELECTRONIC PAYMENT SYSTEM BALAJI INSTITUTE OF IT AND MANAGEMENT Page 9

EFT SAVES OUR TIME AND MONEY

7.6 Different names of EFT

7.7 TYPES OF EFT

7.8 TOOLS OF EFT

UNIT-3 ELECTRONIC PAYMENT SYSTEM BALAJI INSTITUTE OF IT AND MANAGEMENT Page 11

1. Introduction to e-business : Electronic business, Electronic commerce, difference

 The impact of e-business has already begun to appear in all areas of

1.7BUSINESS MODELS AND REVENUE MODELS

1. Social Media Model

1. SOCIAL MEDIA MODEL:

1.7.2 REVENUE MODEL OVER INTERNET

2. RENTAL OR LEASING MODEL

4. SPONSORED RANKING MODEL

1.7.3 REVENUE STREAMS:

1.7.4 REVENUE MODEL V/S BUSINESS MODEL

The revenue model is a key component of the business model as it is an

2. EMERGING TRENDS IN E-BUSINESS

2.1 IMPORTANT TRENDS

1. Travel was the first to go online

4. Rise of exclusive online labels – Zovi, Shersingh

5. Lingerie is Big – Over 39 stores sell innerwear & lingerie

The process is extremely complicated which revises the proper

3.2 TYPES OF INTERACTION IN E-GOVERNANCE

E-Governance can only be possible if the government ready for it. It is

3.3 SOME OF THE MEASURES INCLUDE