Topic of the Assignment

(Assignment #2)

Credit Assignment

By
HAFEEZ UR REHMAN (03)

Project for BBA (E-Commerce)

Presented to
Sir Imran Memon

SBBU School of Business

SHAHEED BENAZIR BHUTTO UNIVERSITY, SBA

Date of the submission

28-08-2017
Q:1 DISCUSS THE IMPACT OF E-COMMERCE IN ORGANIZATION:

ANS: The impact of introducing an e-commerce system to an organization Global Marketplace

Drawbacks 24/7 trading The benefits Lack of human contact Search facilities/competitive edge Relatively
low start-up and running costs Consumer trust Delivery issues Security issues International legislation
Product description problems Access to the global market place will benefit the business as it means
that they will become better known. This will then enable the company to get ahead of its rivals because
it can also compete online. Also, the other benefit of global marketplace is that they will gain consumers
and therefore their sales will increase resulting in a profit increase. This enables consumers to shop
whenever they want this will benefit both the consumers and the business. It will benefit the consumers
because it means that they can buy products online any time they want. This will then benefit the
business as it means that their sales and profit will increase. This is a benefit for the company and the
consumers. It is a benefit for the company as it means it will cost them less money. It is also beneficial to
the consumers. This is because if it cost the company a lot of money than they might increase the prices
of their products so that they get the money back. This would then mean that consumers would be
paying more money. This is beneficial to the consumers because search facilities allow them to shop
around to compare the prices of products on competing company's websites. The company will need to
gain trust of consumers as they will need to trust them enough to share their personal details such as
bank details. This won’t be easy for the business as they will need to gain the trust of consumers. This
could take a long time which will be a drawback. This is a draw back as it is easy to communicate with
someone in person. Also, an email can easily be misread. This is a drawback as the company could send
an email to a consumer and it could be interpreted as rude even if it was intended to be.
Also, if a consumer has a problem then the lack of human contact could act as a barrier as it will be
harder to communicate and solve the issue. This is a drawback for the company because if they have
delivery issues then they could potentially lose customers due to them being unreliable.
However, to overcome this they could arrange for their deliverers to phone the consumer before leaving
and to phone them if they get stuck in traffic so that the consumer knows if there will be delays. There
could be security issues on their website. This would be a disaster as the consumer would've trusted the
company with their bank details and therefore security issues would lose the trust of their consumers
and therefore lose them consumers. The product description could be different to what the actual
product looks like.
Also the size description could be different to the sizing therefore to overcome this they could display the
measurement of the item. International legislation's could be a draw back as it means that there are set
rules and regulations which the company has to follow when selling internationally. This is something
that they will need to try and reinforce over the internet which could be difficult, however, not impossible.

Q: 2 Essential Role of Social Media Networking & Social Networking in E-Commerce?

ANS: Social media serves a vital purpose in online marketing by helping companies establish stronger
web presence, generate leads and increase traffic. A well-structured social media strategy is important
for improving the development and growth of an ecommerce business. Social media continues to gain
popularity owing to its commercial success around the world.

A significant percentage of advertising campaigns take place through social media websites. Including
social media in an effort to advance ecommerce can be highly beneficial. It provides an effective way to
attract the interest of the large audiences that use social media.

Rapid Social Media Growth

The use of social media has witnessed rapid growth over a time with several people making purchases
through it. Many businesses have opted to take advantage of the opportunities presented by social
media networks to obtain more customers. Although some business owners may be skeptical about
using social media, the reality is that it is a worthwhile inclusion in online marketing campaigns.

Use Social Media According to your Objectives

In order for you to be able to maximize on the potential of social media for your online business, you
need to set clear objectives. Companies use social media with the aim of creating leads, boosting their
sales and spreading brand awareness digitally.
Social media has the ability to increase sales because strong online presence on sites such as Facebook
and Twitter provide a cost effective way to interact directly with prospective consumers. When you
communicate with your consumers through social media networks, you are able to get feedback that
gives you insight into what they want.
Impact of Sharing Information on Purchasing Decisions

• Social media sites cater for innovative features such as ‘like’ buttons and comment sections frequently
used to facilitate conversations. Sharing information through social media is important because of the
impact it has on the choices that people make when selecting products and services.
• Incorporating Share buttons for social media platforms such as LinkedIn, Facebook and Twitter on your
website will allow you to advertise your business and promote interaction. You can consider carrying out
promotional activities exclusively on social media platforms to increase traffic your site as well as the
following that you have.
• Several social media users make their purchases online after they share items on Pinterest, Facebook
and Twitter. This is a clear indication of how vital social media networking is in ecommerce. Consumers
around the world will be spending billions of their hard earned money annually through the accessible
platforms of social media.

Monitoring Social Media

Keeping track of social media as regularly as possible ensures that you communicate with your
customers consistently. By neglecting social media or you being rarely available shows you are not quite
interested in your customer base.
In 2013, almost 40% of social media users relied on the sites to carry out research regarding products or
services they were interested in. Over 70% of customers based their purchasing decisions on the
information they gathered from social media. The increase in traffic to ecommerce sites has resulted in
significant sales for various outlets.

Popular Social Media Options

Facebook has been cited as the ideal social media platform for creating brand awareness and engaging
with consumers. Twitter is suitable for encouraging interaction with customers and the hash tag feature
makes it easier to share valuable content.

YouTube is an excellent choice for businesses that want to use videos to promote their brands and
increase their visibility. Pinterest is a worthwhile option for you if you need to offer merchandise
exclusively and showcase products in advance.
Value of Social Media

Social media needs to be a part of your company’s marketing budget because it gives you a powerful
way to create a connection with your target audience. From Instagram to LinkedIn, there are virtually
limitless ways for you to interact, give and share information as well as market your products. When you
perform social marketing effectively, it adds instant value.

Social networks enable you to connect with new customers and stay in touch with the customers you
already have. They also give you the opportunity to provide access to your brand in an enjoyable and
convenient way. The content that you offer through social networks is just as significant as a sign at the
entrance of a store or a displayed poster.

Commercial Platforms for Effective Online Marketing

Social networks have gone beyond being sites where people can find and share information. They have
evolved into commercial platforms that more and more businesses are utilizing. Social media serves
your marketing strategy by easing the process of acquiring customers, making sales and setting up new
marketing campaigns.

An important aspect of social media is that it takes you directly to where your customers are. You can
use social media networks to gain a better understanding of your audience. This makes it much easier
for you to design campaigns that are suited to their needs.

Social media enhances customer service by making you accessible to your customers who have a
tendency to seek immediate feedback. You will be able to respond in a timely manner to their concerns
and inquiries.

The profile you use on social media can compare to the traditional signage at the front of a store.
Consumers rely on social sites to find out about products and services. Optimized profiles and useful
information will create a positive first impression for your online business.
SOCIAL NETWORKING IN ECOMMERCE :

As inbound marketers, we know that you should always make decisions on data. Ideally, the data is our
own - we track our efforts and the sales and customer value that we generate. However, sometimes it's
useful to discover new opportunities to explore by looking at what's driving success for the ecommerce
industry as a whole. Driving traffic and sales is an important metric for measuring your effectiveness in
social media. There are, of course, other applications of social media - such as customer service and
positively influencing SEO. However, knowing which networks drive traffic that turns directly into sales
will help you know what networks may be worth engaging in more proactively. An interesting expansion
would be to break the sales down by the type of content marketers are sharing in each network.
Obviously, the highly visual networks are going to rely heavily on whether or not an image is included. It
would be interesting to break this data down into marketers sharing coupons, educational content,
social proof, contests, simple product detail pages, etc. We know from survey and anecdotal evidence
that just spamming product detail pages, for example, isn't the best way to drive sales and that
educational or social-proof content is more likely to drive traffic.

Q:3 SOCIAL NETWORKING THREATS FOR E COMMERCE OR VICE VERSA?

ANS: Yes There are various types of e-commerce threats. Some are accidental, some are purposeful, and
some of them are due to human error. The most common security threats are phishing attacks, money
thefts, data misuse, hacking, credit card frauds and unprotected services.
Inaccurate management-One of the main reason to e-commerce threats is poor management. When
security is not up to the mark it poses a very dangerous threat to the networks and systems. Also security
threats occur when there are no proper budgets are allocated for purchase of anti-virus software licenses.
Price Manipulation-
Modern e-commerce systems often face price manipulation problems. These systems are fully automated;
right from the first visit to the final payment getaway. Stealing is the most common intention of price
manipulation. It allows an intruder to slide or install a lower price into the URL and get away with all the
data.
Snowshoe Spam-
Now spam is something which is very common. Almost each one of us deals with spam mails in our mail
box. The spam messages problem has never been actually solved but now it is turning out to be a not so
general issue. The reason for this is the very nature of a spam message. A spam is something which is sent
by one person; but unfortunately a new development is taking place in the cyber world. It is called as
snowshoe spam. Unlike a regular spam it is not sent from one computer but is sent from many users. In
such a case it becomes difficult for the anti-spam software to protect the spam messages.
Malicious code threats-
These code threats typically involve viruses, worms, Trojan horses.
 Viruses are normally external threats and can corrupt the files on the website if they find their way in
the internal network. They can be very dangerous as they destroy the computer systems completely
and can damage the normal working of the computer. A virus always needs a host as they cannot
spread by themselves.
 Worms are very much different and are more serious than viruses. It places itself directly through the
internet. It can infect millions of computers in a matter of just few hours.
 A Trojan horse is a programming code which can perform destructive functions. They normally
attack your computer when you download something. So always check the source of the downloaded
file.

Hacktivism-
The full form of Hacktivism is hacking activism. At first it may seem like you should hardly be aware of
this cyber threat. After all it is a problem not directly related to you. Why you should be bothered at all?
However that’s not the case. Firstly hacktivists do not target directly to those associated only with
politics. It can also be a socially motivated purpose. It is typically using social media platforms to bring to
light social issues. It can also include flooding an email address with so much traffic that it temporarily
shuts down.
Wi-Fi Eavesdropping-
It is also one of the easiest ways in e-commerce to steal personal data. It is like a “virtual listening” of
information which is shared over a Wi-Fi network which is not encrypted. It can happen on public as well
as on personal computers.
Other threats-
Some other threats which include are data packet sniffing, IP spoofing, and port scanning. Data packet
sniffing is also normally called as sniffers. An intruder can use a sniffer to attack a data packet flow and
scan individual data packs. With IP spoofing it is very difficult to track the attacker. The purpose here is
to change the source address and give it such a look that it should look as though it originated from
another computer.
Q:4 which network architecture is suitable for e commerce?

ANS: Network architecture is the design of a communication network. It is a framework for the
specification of a network's physical components and their functional organization and configuration, its
operational principles and procedures, as well as data formats use. This concept was brought by Shreyas
Dhakal In telecommunication, the specification of a network architecture may also include a detailed
description of products and services delivered via a communications network, as well as detailed rate and
billing structures under which services are compensated.

The network architecture of the Internet is predominantly expressed by its use of the Internet Protocol
Suite, rather than a specific model for interconnecting networks or nodes in the network, or the usage of
specific types of hardware links.

The functions E-commerce application architecture divided into six layers. They are:
1. Application
-C2B
-B2B –Intra organization
2. Brokerage and data management -Order processing-e-mail order houses. -Payment schemes-
Electronic cash. -Clearinghouse-virtual mail. 3. Interface Layer Application B2B,C2B,INTRA FIERM E-
COM Application architecture Secure messaging HTTP, encryption, remote programming Network
infrastructure Wireless, Coaxial, optical fibre Middle wear services Structured Compounded Documents
Brokerage and data management Order, Payment, Clearing Inter face layer catalogue, directory software -
Interactive catalogue -Directory support function -Software agency 4. Secure messaging -Secure HTTP -
Encrypted e-mail EDI -Remote programing (RPG) 5. Middle wear services -Structured documentation
SGML/HTML -Compounded documents OLE, Open Doc 6. Network infra-structure -Wireless-cellular,
radio, PCs. -Wire lines-POTs, Coaxial, Fibre optics It is to be noted that all these layers are used for a
single transaction. Hence E-commerce is an integrated system consisting of technology and commerce.
Application Layer Consumer to Business The transaction between a consumer and business is known as
C2B transaction. It is usually known as the market place as the consumer meets the business only in the
markets. The consumer gets knowledge about the products, price, quality etc. through electronic
publishing, buy product or get services through electronic cash and secure payment system. In these
transactions, the term quality, content, distribution, etc., have different meanings. The E-Commerce has
forced business firms to change their strategies for entering this new area. It is seen that the global
suppliers, through classic electronic data interchange enter ECommerce field. Various processes benefit
the customers. Business-to-Business Transactions E-Commerce enables the B2B transactions. These
transactions are classified as market link transactions. Computer to computer communications are fast,
economical, and dependable way to conduct business transactions by business firms, organizations and
governments. The use of electronic data interchange and electronic mail are used for purchasing goods
and services, getting information and consultancy services, submitting requests for proposal and receiving
proposal in Business-to business transactions. Paying creditors or discounting bills without ECommerce
require lot of paper transactions with waste of time, money and other human resources. These
transactions, if done through electronic commerce application in the electronic form, will be cheaper, less
time consuming and reliable.

Brokerage and data management Information brokerage and data management provide service
integration. Due to the increasing resource fragmentation the notion of information brokerages has
developed. Notion of information brokerages represents the intermediary between the customer and
information providers. These intermediaries provide service integration at a low price, fest service, and
profit maximization for client. Online databases are migrating to customer information utilities. The
consumer and information professionals have to keep up with the knowledge and ownership of all these
systems. Information brokers are required while dealing with huge transaction in the network. As the
number of databases have increased it has become complex and impossible to search data from these
service providers. Information brokerage also addresses the issue by adding value to global suppliers
electronic data interchange procurement, distribution and logistics engineering and research production
and manufacturing accounting finance and management advertising sales customer service private
commerce internal publishing consumer oriented e-commerce CUSTOMERS the information. It helps to
minimize risk. A chain is created, as the act of retrieving the information is the input for another
transaction. Data management is supported by the brokerage function. Various tools such as software
agents, distributed querying generator, distributed transaction generator and the declarative resources
constraint base and used. Business rules are also explained. The work and data flow. Software agents are
used to implement information brokerage. The software agents are mobile programs and are also called as
„healthy viruses‟, „digital butlers‟ and „intelligent agents‟. The agents perform tasks as per the
instruction of the user. These tasks are performed in the electronic market place. These agents are capable
of gathering information, resources, negotiating deals, etc. The agents are also termed as “Intelligent
Agents” as they possess configuring plans. These agents provide alternates, and they do the actions on
their own. The agents access the directory and search similar goods as per the orders. Some feel that these
software agents are self-destructive and even may act like a computer virus. Interface layer This layer
provides interactive catalogue, directory support function etc. Search to information is done in this layer
and information is accessed. The process of search and access takes place in this layer. Interactive
catalogues are the customaries interface to consumer applications, such as home shopping. Directories
operate behind these scenes and attempt to organize enormous amount of data. These service make data
from any server appear as a local file. Interactive catalogues deal with people. Directory support interacts
direct with software applications. Directory need not have multimedia aspects as they work behind the
screen. Secure Messaging Business issues usually require a secured environment. The messaging should
be secure and fast. There should not be any delay. Integrated messaging: Integrated is a group of
computer services that through the use of a network, sends, receive and combine message, faxes and large
data files. E-mail, exchanged fax and EDI are the examples for the integrated messaging. Messaging is
the software that lies between the user and the network infrastructure.

Q:5 What's the Difference Between an Intranet and the Intranet?

ANS: There's one major distinction between an intranet and the Internet: The Internet is an open, public
space, while an intranet is designed to be a private space.

INTERNET:
1. Internet is wide network of computers and is open for all.
2. Internet itself contains a large number of intranets.
3. The number of users who use internet is Unlimited.
4. The Visitors traffic is unlimited.
5. Internet contains different source of information and is available for all.
INTRANET:
1. Intranet is also a network of computers designed for a specific group of users.
2. Intranet can be accessed from Internet but with restrictions.
3. The number of users is limited.
4. The traffic allowed is also limited.
5. Intranet contains only specific group information.
Therefore the Internet is an open, public space, while an intranet is designed to be a private space. An
intranet may be accessible from the Internet, but it is protected by a password and accessible only to
authorized users.
Q:6 ROLE OF NETWORKING DEVICES IN E-COMMERCE.
Ans: Corporate networks are built assuming certain levels of trust in how the information passing through
them is accessed and used. When they're hooked into public networks, like the Internet, a safer -- and
more intelligent route -- leads security administrators to trust no one on the outside.

Networking devices
Hubs
These provide central connection point for a LAN. They organize cables and relay data signals to all
computers. There are ports on the back of a hub used to connect computers. They come in different sizes
and shapes.
Repeaters
Repeater regenerate signals.A repeater would amplify the entire electric signal it receives. However, it has
no capabilities of directing network traffic.
Bridges
A Bridge is a combination of hardware and software. It has its own operating system. It helps to conserve
the bandwidth of a network. Bandwidth is the speed of a network. It indicates how many bits can be
Transmitted across a network in a given time. In case of a bridge,the larger network is physically chopped
into smaller segments. A bridge can read the MAC (Media Access Control) or physical address of a
computer on data packets. MAC address is printed on the Network Interface Card. A bridge matches this
MAC address with the one stored in its table and judges that which particular segment does a data packet
belong to and accordingly sends that packet to such a segment.
Switches
A switch is also a combination of hardware and software having its own operating system. Like b
ridges, the switches are also used to increase the bandwidth of a network. However, in case of
a switch, a network is virtually divided into small segments called Virtual LANs or VLANs.
VLAN despite that they have no physical proximity or closeness.
Routers

Routers use a combination of hardware and software to forward data packets to their destination on the
internet. They are more efficient and sophisticated than bridges and switches. They can divide large
networks into logical segments called Subnets on the basis of IP addressing scheme. A router can
communicate with another router on the internet with the help of Routing Information Protocol, and thus
it can build a routing table. This routing table contains information about different network addresses and
different routes for delivery of data packets to a host machine on a network. A router is a decision making
device. When a data packet arrives at a router it reads the network addresses from the IP address on the
data packet and determines the shortest possible path through which this packet can be delivered to its
Destination
.
CABLING OPTIONS

Cooper-based cables
They are quite commonly used for connecting computers. They have two main types coaxial and twisted
pair. In twisted pair there are two further options unshielded twisted pair (UTP) and Shielded Twisted
Pair (STP).
Fiber optic cables
They are used on the internet. They deliver data at a very high speed. They use glass or plastic filaments
and the pulses of light as a data transfer method. Telephone and electrical wire networks They can also be
used for connectivity purpose.

Wireless options

Wireless options include radio connectivity (wi fi, bluetooth), infrared connectivity and Satellite

Micro-wave.