MCA-303

E-Commerce

VARDHMAN MAHAVEER OPEN UNIVERSITY

KOTA

www.vmou.ac.in

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MCA-303

Vardhman Mahaveer Open University, Kota

E-Commerce

Course Development Committee

Chair Person

Prof. Ashok Sharma

Vice-Chancellor

Vardhman Mahaveer Open University, Kota

Prof. L.R. Gurjar

Director Academic

Vardhman Mahaveer Open University, Kota

Convener and Members

Convener

Neeraj Arora

Assistant Professor, Computer Science

School of Science and Technology,

Vardhman Mahaveer Open University, Kota.

Members

1. Prof. (Dr.) Reena Dadich

Professor and Head (CS)

University of Kota, Kota

3. Dr. Harish Sharma

Associate Professor, CSE Deptt.

Rajasthan Technical University, Kota

5. Dr. Anuradha Dubey

Deputy Director

School of Science &Technology

Vardhman Mahaveer Open University, Kota

2. Prof. (Dr.) N.K. Joshi

Professor (CS) and Director, MIMT, Kota

4. Mr. Abhishek Nagar,

Programmer Officer, VMOU, Kota

Editor & Unit Writers MCA-303: E-Commerce

Editor

Prof. (Dr.) Nemi Chand Barwar

Professor, Computer Science and Engineering,

M.B.M. Engineering College, Jodhpur

Unit Writers Units

Mr. Indiver Purohit

Professor, Computer Science and Engineering, M.B.M. Engineering College, Jodhpur.

1, 2

Mr. Anil Kumar Sharma

Assistant Professor, Department of CS, Govt.Women Engg. College, Ajmer.

3, 8

Mr. Piyush Vyas

Associate Professor & Department Proctor, ECE Department, J.I.E.T., Jodhpur.

4, 6, 7, 9, 11, 12

Mr. Parth Vidyarthi

Asst. Professor (Computer Science & Engg. Deptt),Career Point University, Kota

5

Mr. Sanjay Kumar Anand

Assistant Professor, Department of Computer Science, Central University of Rajasthan,

Kishangarh, Ajmer

10

Mr. Yogesh Sharma

Retd. Associate Professor of Law, Vardhman Mahaveer Open University, Kota

13

Academic and Administrative Management

Prof. Ashok Sharma

Vice-Chancellor

Vardhman Mahaveer Open University, Kota

Prof. L.R. Gurjar

Director (Academic)

Vardhman Mahaveer Open University, Kota

Dr. Shiv Kumar Mishra

Director (MP&D)

Vardhman Mahaveer Open University, Kota

Print: 2018 ISBN: : 978-81-8496-642-8

All Right reserved. No part of this Book may be reproduced in any form by mimeograph or any other means

without permission in writing from Vardhman Mahaveer Open University, Kota.

Printed and Published on behalf of the Registrar, Vardhman Mahaveer Open University, Kota.

Printed by :

MCA-303

Vardhman Mahaveer Open University, Kota

E-Commerce

Contents

Unit No. Unit Pages

Unit-1 Introduction to Electronic Commerce:

Motivation, brief history of e-commerce, Advantages and Disadvantages, Benefits

to Organization, Benefits to society, Forces behind E commerce industry

framework, Architectural framework

1-19

Unit-2 Traditional Commerce v/s E- Commerce:

Traditional business commerce, Rules for traditional commerce, Main difference

between e-commerce and traditional commerce, Technical & non-technical

limitations, Enterprise Data Interchange.

20-33

Unit-3 E- Commerce Models:

Business - to - Business (B2B), Business - to - Consumer (B2C), Consumer - to -

Consumer (C2C), Consumer - to - Business (C2B), Business - to - Government

(B2G), Government - to - Business (G2B), Government - to - Citizen (G2C), Intra

organizational ecommerce and Inter organization ecommerce..

34-50

Unit-4 Network infrastructure for ecommerce:

Infrastructure for ecommerce, Meaning of I-Way, Market forces behind I-way,

Market Drivers of I-Way, Component of I-way access equipment, The I-way

Infrastructure and Strategic Alliances, Understanding the requirement and

demands, Global information distributed network, Broadband

Telecommunication.

51-70

Unit-5 Mobile Commerce:

Introduction to mobile commerce, Advantage of M-Commerce, History of M-

Commerce, M-Commerce Versus E-Commerce, Mobile computing application,

Wireless application protocols, WAP Architecture, WAP Technology, Mobile

information devices.

71-85

Unit-6 Security in E-Commerce: Client-Server network, Emerging client server security threats, Threats to Servers,

86-110

Protecting the Environment, Trust-Based Security, Security Through

Obscurity(STO), Password Schemes, Biometric Systems

Unit-7 Threats and Security: Software Agents and Malicious code Threat, Trojan horses, Malwares, Worms,

Viruses, Introduction to Cryptography.

111-136

Unit-8 Security tool in E-Commerce:

Introduction to web security, Firewalls & its types, Configuration of firewalls,

Limitations of Firewall, Data and Transaction security.

137-159

Unit-9 Risk management approach in E-commerce:

Risks in E-commerce, Data & Gateway Security, Fraud schemes in E-commerce,

Handling Transactions, Online Transactions Processing - From start to finish,

Chargeback in Visa Transactions, The charge back lifecycle, Best practices to

safety, Risks in E-commerce start up, Policies for website utilities.

160-182

Unit-10 Electronic Data Interchange:

EDI Definition, Benefits of EDI, Shortened Ordering Time, EDI Example, Legal

Requirement in E-Commerce, Limitations of EDI.

183-195

Unit-11 Electronic Payment System:

Overview of Electronics Payments, Types of Electronic Payment Systems, Digital

Token-Based Electronic Payment Systems, Smarts Cards, Credit Card, Debit Card

Emerging financial Instruments, Home Banking, Online Banking, Wallet.

196-218

Unit-12 Intranet and Extranet:

Definition of Intranet, Advantages and Disadvantages of the Intranet, Component

of an Intranet, Development of Intranet, Extranet and Intranet Difference, Role of

Intranet in B2B Application.

219-243

Unit-13 Legal Issues related to E-commerce in India:

E- Governance of India, Cyber Law in India, Computer Crime, Types of Crimes,

Introduction to Ethics, Cyber laws, Types of Cyber Crimes, Characterstics of

Cyber crimes, Purpose of Cyber law, Legal Framework in India, IT Acts in India,

Amendments.

244-286

Preface

The present book entitled “E-Commerce” has been designed so as to cover the unit-wise syllabus

of MCA-303 course for MCA 3rd Year students of Vardhman Mahaveer Open University, Kota.

E-commerce is a catchy term for any commercial transaction that is conducted electronically on

the internet, be it from a mobile device, tablet or desktop. Most commonly, E-commerce is used

to refer to a consumer purchasing a product online and having it shipped to them directly, but can

also include the consumer purchase of services, business to business transactions for goods or

services, online auctions, or the purchase of digital goods, such as streaming movies or video

games.

This book provides the detailed overview of E-commerce. This book starts with comparison of E-

commerce with traditional commerce, various E-commerce models, Mobile commerce, Security

and threads associated with E-Commerce, tools to cope threads against E-commerce. At the end

we will discuss some fundamental of Internet and Extranet and also some legal issues related to

E-commerce in India.

Each unit begins with objectives, introduction and principles together with illustrative and other

descriptive material .The illustrative examples serve to illustrate and amplify the theory of

computation. The units have been written by various experts in the field. We believe that this

book is well suited to self-learning. The text is written in a logical sequence and is beneficial for

students. The concise and sequential nature of the book makes it easier to learn. Although we

have made all efforts to make the text error free, yet errors may remain in the text. We shall be

thankful to the students and teachers alike if they point these out to us. Any further comments and

suggestions for future improvement are welcome and will be most gratefully acknowledged.