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PRESENTED TU: SIR ZEESHAN
IBA, PUN)AB UNIVERSITY

Tbursday, August 8,
E-COMMERCE

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Contents
HSTORY: ................................................................................................................. 6
EARLY DEVELOPMENT ....................................................................................... 6
TME LNE ............................................................................................................. 7
BUSNESS APPLCATONS ..................................................................................... 9
GLOBAL TRENDS .................................................................................................... 9
MPACT ON MARKETS AND RETALERS ............................................................. 10
TYPES OF E-COMMERCE ..................................................................................... 11
Business-to-business (B2B) ................................................................................. 12
Business-to-Business (B E-Commerce (2B) - B2b E-commerce Quantified ..... 14
Business-to-Business n Early Adopter Stage .................................................. 15
Business-to-Business (B E-Commerce (2B) - Customer Service ..................... 18
Business-to-Business (B E-Commerce (2B) - Public Marketplaces And Private
Exchanges ........................................................................................................ 18
Business-to-Business(E-commerceOutlook) .................................................... 21
Business-to-consumer (B2C) ............................................................................... 22
Types of business to consumers ...................................................................... 22
Advantages ....................................................................................................... 24
Unique attributes .............................................................................................. 24
Business-to-Employee (B2E) ............................................................................... 25
Business-to-government (B2G) (also known as Business to Administration or
B2A) ..................................................................................................................... 25
Business-to-machines (B2M) ............................................................................... 26
Business-to-manager (B2M) ................................................................................ 27
Consumer-to-business (C2B)............................................................................... 28
Consumer-to-consumer (C2C) ............................................................................. 29
Government-to-business (G2B) ........................................................................... 29
Government-to-citizen (G2C) ............................................................................... 30
Government-to-employee (G2E) .......................................................................... 30
Government-to-government (G2G) ...................................................................... 31
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Manager-to-consumer (M2C) ............................................................................... 32
Peer-to-peer (P2P) ............................................................................................... 33
ARCHTECTURE OF P2P SYSTEMS .............................................................. 34
PEER-TO-PEER-LKE SYSTEMS .................................................................... 39
ADVANTAGES AND WEAKNESSES............................................................... 39
SOCAL AND ECONOMC MPACT ................................................................. 40
APPLCATONS ............................................................................................... 41
HSTORCAL PERSPECTVE .......................................................................... 44
NETWORK NEUTRALTY CONTROVERSY ................................................... 44
Bibliography ............................................................................................................ 45
REFERENCES ........................................................................................................ 46

%,-e of Figures

Figure 1 ............................................................................................................................. 12
Figure 2 ............................................................................................................................. 13
Figure 3 ............................................................................................................................. 22
Figure 4 ............................................................................................................................. 22
Figure 5 ............................................................................................................................. 25
Figure 6 ............................................................................................................................. 25
Figure 7 ............................................................................................................................. 26
Figure 8 ............................................................................................................................. 28
Figure 9 ............................................................................................................................. 28
Figure 10 ........................................................................................................................... 29
Figure 11 ........................................................................................................................... 30
Figure 12 ........................................................................................................................... 30
Figure 13 ........................................................................................................................... 30
Figure 14 ........................................................................................................................... 36



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lectronic commerce, commonly known as e-commerce refers to
the buying and selling of products or services over electronic
systems such as the nternet and other computer networks.
However, the term may refer to more than just buying and selling
products online. t also includes the entire online process of developing,
marketing, selling, delivering, servicing and paying for products and
services. The amount of trade conducted electronically has grown
extraordinarily with widespread nternet usage. The use of commerce is
conducted in this way, spurring and drawing on innovations in electronic
funds transfer supply chain management, nternet marketing, online
transaction processing, (ED), inventory management systems, and
automated data collection systems. Modern electronic commerce
typically uses the World Wide Web at least at one point in the
transaction's life-cycle, although it may encompass a wider range of
technologies such as e-mail, mobile devices and telephones as well.
A large percentage of electronic commerce is conducted entirely in
electronic form for virtual items such as access to premium content on a
website, but mostly electronic commerce involves the transportation of
physical items in some way. Online retailers are sometimes known
as e-and online retail is sometimes known as e-tail. Almost all big
retailers are now electronically present on the World Wide Web.
Electronic commerce that takes place between businesses is referred to
as business-to-business or B2B. B2B can be open to all interested
parties (e.g. commodity exchange) or limited to specific, pre-qualified
participants (private electronic market).




E
E-COMMERCE

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E - COMMERCE MA%RIX


BUSNESS CONSUMER L
B
U
S

N
E
S
S

B2B
GM FORD
ED NETWORK
B2C
AMAZON DELL
C
O
N
S
U
M
E
R

L

C2B
PRCE LNE
ACCOMPANY
C2C
EBAY
QX

Electronic commerce that takes place between businesses and
consumers, on the other hand, is referred to as business-to-
consumer or B2C.This is the type of electronic commerce conducted by
companies such as Amazon.com. Online shopping is a form of
electronic commerce where the buyer is directly online to the seller's
computer usually via the internet. There is no intermediary service
involved. The sale or purchase transaction is completed electronically
and interactively in real-time such as in Amazon.com for new books.
However in some cases, an intermediary may be present in a sale or
purchase transaction such as the transactions on eBay.com.
Electronic commerce is generally considered to be the sales aspect
of e-business. t also consists of the exchange of data to facilitate the
financing and payment aspects of business transactions.
E-COMMERCE

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HIS%ORY:
EARLY DEVELOPMEN%

Originally, electronic commerce was identified as the facilitation of
commercial transactions electronically, using technology such
as Electronic Data nterchange (ED) and Electronic Funds Transfer
(EFT). These were both introduced in the late 1970s, allowing
businesses to send commercial documents like purchase orders or
invoices electronically. The growth and acceptance of credit cards,
automated teller machines (ATM) and telephone banking in the 1980s
were also forms of electronic commerce. Another form of e-commerce
was the airline reservation system typified by Sabre in the USA and
Travicom in the UK.
From the 1990s onwards, electronic commerce would additionally
include enterprise resource planning systems (ERP), data
mining and data warehousing.
n 1990, Tim Berners-Lee invented the WorldWideWeb web
browser and transformed an academic telecommunication network into
a worldwide everyman everyday communication system called
internet/www. Commercial enterprise on the nternet was strictly
prohibited by NSF until 1995
i
. Although the nternet became popular
worldwide around 1994 with the adoption of Mosaic web browser, it
took about five years to introduce security protocols and DSL allowing
continual connection to the nternet. By the end of 2000, many
European and American business companies offered their services
through the World Wide Web. Since then people began to associate a
word "ecommerce" with the ability of purchasing various goods through
the nternet using secure protocols and electronic payment services.
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%IME LINE
4 1979: Michael Aldrich invented online shopping
ii

4 1981: Thomson Holidays, UK is first B2B online shopping
4 1982: Minutely was introduced nationwide in France by France
Telecom and used for online ordering.
4 1984: Gates head SS/Tesco is first B2C online shopping and
Mrs. Snowball, 72, is the first online home shopper
4 1985: Nissan UK sells cars and finance with credit checking to
customers online from dealers' lots.
4 1987: Swreg begins to provide software and shareware authors
means to sell their products online through an electronic Merchant
account.
4 1990: Tim Berners-Lee writes the first web browser, Worldwide
Web, using a NeXT computer.
4 1992: Terry Brownell launches first fully graphical, iconic
navigated Bulletin_board_system online shopping
using RoboBOARD/FX.
4 1994: Netscape releases the Navigator browser in October under
the code name Mozilla. Pizza Hut offers online ordering on its
Web page. The first online bank opens. Attempts to offer flower
delivery and magazine subscriptions online. Adult materials also
become commercially available, as do cars and
bikes. Netscape 1.0 is introduced in late 1994 SSL encryption that
made transactions secure.
4 1995: Jeff Bezos launches Amazon.com and the first commercial-
free 24 hour, internet-only radio stations, Radio HK and Net
Radio start broadcasting. Dell and Cisco begin to aggressively
use nternet for commercial transactions. EBay is founded by
computer programmer Pierre Omidyar as Auction Web.
4 1998: Electronic postal stamps can be purchased and
downloaded for printing from the Web.
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4 1998: Alibaba Group is established in China. And it leverage
China's B2B and C2C, B2C (Taobao) market by its Authentication
System.
4 1999: Business.com sold for US $7.5 million to e Companies,
which was purchased in 1997 for US $149,000. The peer-to-peer
file sharing software Napster (Napster) launches. ATG
Stores launches to sell decorative items for the home online.
4 2000: The dot-com bust.
4 2002: eBay acquires PayPal for $1.5 billion
iii
. Niche retail
companies CSN Stores and NetShops are founded with the
concept of selling products through several targeted domains,
rather than a central portal.
4 2003: Amazon.com posts first yearly profit.
4 2007: Business.com acquired by R.H. Donnelley for $345 million
iv
.
4 2009: Zappos.com (zappose) acquired by Amazon.com
(Amazon) for $928 million
v
. Retail Convergence, operator of
private sale website RueLaLa.com, acquired by GS
Commerce for $180 million, plus up to $170 million in earn-out
payments based on performance through 2012
vi
.
4 2010: Groupon reportedly rejects a $6 billion offer from Google.
nstead, the group buying websites plans to go ahead with an PO
in mid-2011
1
.
4 2011: US e Commerce and Online Retail sales projected to reach
$197 billion, an increase of 12 percent over 2010
2
. Quidsi.com,
parent company of Diapers.com, acquired by Amazon.com for
$500 million in cash plus $45 million in debt and other
obligations
3
. GS Commerce, a company specializing in creating,
developing and running online shopping sites for brick and mortar
brands and retailers, acquired by eBay (ebay) for $2.4 billion.



1
Press Release". MSNBC.
2
Forecast of eCommerce Sales in 2011 and Beyond". Forrester Research, nc.
3
"Press Release". MarketWatch.
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BUSINESS APPLICA%IONS
Some common applications related to electronic commerce are the
following:
1. Document automation in supply chain and logistics
2. Domestic and international payment systems
3. Enterprise content management
4. Group buying
5. Automated online assistants
6. nstant messaging
7. Newsgroups
8. Online shopping and order tracking
9. Online banking
10. Online office suites
11. Shopping cart software
12. Teleconferencing
13. Electronic tickets
GLOBAL %RENDS
Business models across the world also continue to change
drastically with the advent of eCommerce and this change is not just
restricted to USA. Other countries are also contributing to the growth of
eCommerce. For example, the United Kingdom has the biggest e-
commerce market in the world when measured by the amount spent per
capita, even higher than the USA. The internet economy in UK is likely
to grow by 10% between 2010 to 2015. This has led to changing
dynamics for the advertising industry.
Amongst emerging economies, China's eCommerce presence
continues to expand. With 384 million internet users, China's online
shopping sales rose to $36.6 billion in 2009 and one of the reasons
E-COMMERCE

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behind the huge growth has been the improved trust level for shoppers.
The Chinese retailers have been able to help consumers feel more
comfortable shopping online.

IMPAC% ON MARKE%S AND
RE%AILERS
Economists have theorized that e-commerce ought to lead to
intensified price competition, as it increases consumers' ability to gather
information about products and prices. Research by four economists at
the University of Chicago has found that the growth of online shopping
has also affected industry structure in two areas that have seen
significant growth in e-commerce, bookshops and travel agencies.
Generally, larger firms have grown at the expense of smaller ones, as
they are able to use economies of scale and offer lower prices. The
lone exception to this pattern has been the very smallest category of
bookseller, shops with between one and four employees, which appear
to have withstood the trend.
HOW DO E - COMMERCE WEBSTE WORKS







Shipping
Provider
Payment
Processor
Customer
Product
Database
YOU
Admin nterface
E Commerce Website
TYPES OF E - COMMERCE

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%YPES OF E-COMMERCE
E-commerce types represent a range of various schemas of
transactions which are distinguished according to their participants.
Business-to-business (B2B)
B E Commerce (2B) B2b E Commerce Quantified
Business to Business in Early Adopter stage
B E Commerce (2B) Customer Service
B E Commerce (2B) Public Marketplaces and Private
Exchanges
E Commerce Outlook
Business-to-consumer (B2C)
Business-to-employee (B2E)
Business-to-government (B2G) (also known as Business to
Administration or B2A)
Business-to-machines (B2M)
Business-to-manager (B2M)
Consumer-to-business (C2B)
Consumer-to-consumer (C2C)
Citizen-to-government (also known as consumer-to-administration
or C2A)
Government-to-business (G2B)
Government-to-citizen (G2C)
Government-to-employee (G2E)
Government-to-government (G2G)
Manager-to-consumer (M2C)
Peer-to-peer (P2P)
%YPES OF E - COMMERCE

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Business-to--usiness (B2B)
nternet-based business-to-business
(B2B) e-commerce is conducted
through industry-sponsored
marketplaces and through private
exchanges set up by large companies
for their suppliers and customers. Of
course, companies also sell to
business customers through their own
Web sites.

n the early 2000s, industry-sponsored marketplaces (SMs)
accounted for only a small percentage of B2B transactions. The
main reason, according a survey of 25 SMs published in the
industry periodical B to B, is that SMs have had problems
convincing buyers and sellers to use them. For one thing,
companies are reluctant to acquire customized designs through
marketplaces because they don't want to reveal proprietary
information on a site that is shared by competitors. These
companies fear they will give away too much information about
their competitive strategies simply by taking part in such a
marketplace. SMs also do not necessarily level the playing field
for small companies against larger competitors. As a result,
companies use such marketplaces mainly to purchase commodity
goods, manage their supply chains, and conduct indirect
procurement transactions not related to their core business.
Business-to-business (B2B) e-commerce is significantly different
from business-to-consumer (B2C) e-commerce. While B2C
merchants sell on a first-come, first-served basis, most B2B
commerce is done through negotiated contracts that allow the
seller to anticipate and plan for how much the buyer will purchase.
n some cases B2B is not so much a matter of generating revenue
as it is a matter of making connections with business partners.



Figure
%YPES OF E - COMMERCE

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B2B Ex,25e
Connecting applications within an organization is important, but
connecting applications that span organizations can sometimes have
even more business value. The following figure shows a simple
example of a business-to-business (B2B) integration scenario.
The applications are connected as follows:
The purchasing organization at the top of the figure runs a
Microsoft BizTalk Server 2004 application that interacts with
two supplier organizations.
Supplier A also uses BizTalk Server 2004, providing indirect
access to its Supply application.
Supplier B uses an integration platform from another vendor, and
connects to the BizTalk Server 2004 application of the purchasing
organization by using, for example, Web services. Supplier B is
executing the same business process as the others, and so
Supplier B received a BPEL definition of that process from the
purchasing organization, which exported the definition from
BizTalk Server 2004.



Figure 2
%YPES OF E - COMMERCE

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Business-to-Business (B E-Co22erce (2B) - B2- E-co22erce
Qu,ntified
A March 2001 study by the Gartner Group reported that $433
billion was spent worldwide on B2B e-commerce in 2000, reflecting a
189 percent increase over the $145 billion spent online in 1999. The
study noted that online B2B marketplaces accounted for only a small
percentage of B2B nternet commerce in 2000. Looking ahead, Gartner
predicted that B2B e-commerce would reach $919 billion in 2001 and
$1.9 trillion in 2002, estimates that took into account the general
economic downturn that was taking place.
A U.S. Census Bureau survey of U.S. manufacturers found that, for all
of 1999, the most frequently used electronic networks for accepting
orders were electronic data interchange (ED), which more than half of
the manufacturers used, and the nternet, which about one-third of the
manufactures used to accept orders. However, the value of ED-based
orders accounted for 67 percent of electronic sales in 1999, while the
value of nternet-based orders only accounted for 5 percent. The
findings reflect the fact that manufacturers have been conducting
business electronically using ED systems for several years.
n terms of procurement, the same survey, conducted in June 2000,
revealed that the nternet was used most frequently to make electronic
purchases. Still, the value of ED-based purchases accounted for 65
percent of electronic purchases, and the nternet only 14 percent.
Overall, e-commerce activity accounted for 12 percent of all sales
among U.S. manufacturers in 1999.
B2B is far and away the largest sector of e-commerce. Comparing B2B
with B2C e-commerce, the U.S. Department of Commerce reported that
B2B online sales accounted for 90 percent of all online transactions
during 1999. Still, the study noted that less than one percent of all U.S.
transactions in 1999 were conducted over the nternet. t attributed the
high percentage of B2B e-commerce sales to the longstanding use of
proprietary networks, such as ED, in the B2B sector. The
manufacturing industry was the leader in e-commerce, with $485 billion
or 12 percent of its total shipments resulting from electronic sales.
Merchant wholesalers were second, with $134 billion in electronic sales,
or 5 percent of their total sales. Drugs and pharmaceuticals accounted
for 75 percent of all e-commerce merchant wholesale deals.
%YPES OF E - COMMERCE

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B2B e-commerce requires a significant investment in infrastructure.
ActivMedia Research predicted in May 2001 that sales of B2B software
would reach $10 billion by 2004, as B2B Web sites invested heavily in
marketing, infrastructure, and e-procurement. The research firm also
noted that the percentage of B2B Web sites that had been in business
for less than a year grew from 32 percent in 2000 to 38 percent in the
first part of 2001, a finding that suggested that more new initiatives were
being launched despite the relatively austere conditions facing many
nternet businesses. Separately, an April 2001 study by Jupiter Media
Metrix predicted that spending on infrastructure technology for private
B2B trading networks would grow from $230 million in 2000 to $37
billion in 2005. Through 2003 the study projected that spending on
private networks would grow 300 percent a year, compared to 95
percent a year for public networks.
Business-to-Business In E,r Ado5ter St,ge
Although companies have been doing business electronically for
many years using proprietary ED systems, B2B commerce over the
nternet remained in the early adopter stage at the start of the 2000s.
The notion of an early adopter comes from a popular marketing theory
which holds that buyers of a new product enter the market in several
stages, starting with the early adopters who set the trends and ending
with so-called laggards who purchase only after the vast majority has
already bought. f B2B is still attracting mainly the early crowd, it
suggests great potential for growth, as do the figures from the Census
Bureau and private firms. However, another part of the theory suggests
there is a gap, sometimes called a chasm, that must be bridged
between the early adopters and the early majority buyers; many
products are believed to fail after doing well among early buyers but
failing to catch on in the wider market. Whether B2B nternet commerce
crosses the chasm remains to be seen.
The economic slowdown that began in 2000 was expected to dampen
the development of B2B e-commerce and decelerate the migration from
proprietary ED systems to the nternet. All this came on top of the
reality that corporate decision-makers were slow to adopt the benefits of
B2B e-commerce, even though the technology was available. Some
believe part of the problem has been that adopting B2B e-commerce
could be challenging to the existing corporate culture. Additional
barriers, ranging from a shortage of technology resources to
competitive strategies, are discussed below.
%YPES OF E - COMMERCE

P a g e | 16
Often a prerequisite to certain types of B2B e-commerce is compatibility
between a company's computer systems and the online exchanges or
marketplaces where it seeks to conduct e-commerce. A survey by
Computer Sciences Corp. found that in late 2000, less than 15 percent
of North American businesses' Web sites had the ability to conduct
business online. Other estimates of enterprises able to transact
business online ranged up to 20 percent.
There are several reasons why businesses have remained on the
sidelines of e-commerce. Small and mid-size suppliers appear to be
waiting to see what kind of e-commerce initiatives their larger trading
partners will undertake. Suppliers are faced with a choice of building
their own Web site, selling over a public exchange, or joining the private
exchanges of multiple trading partners. They may feel there is not
enough demand from their customers to sell online. Also, many
businesses do not have the internal information technology (T)
resources to enter into e-commerce. E-commerce operations typically
require significant deployment costs and integration work, much more
than simply offering a hosted Web site.

Surveys have suggested that first-generation B2B e-commerce Web
sites were difficult for customers to use. Problems included too many
Web pages to click through, distracting and unhelpful content, difficulty
signing up for online service, and difficulty researching products. Next-
generation B2B Web sites are expected to be more customer-friendly.
They will incorporate such elements as personalization software that
will reduce the number of click-throughs required. Other features will
facilitate customer self-service, letting them check such things as
inventory status on potential orders and track order shipping. Next-
generation sites will reflect customer service as business's top priority,
with companies leveraging the nternet to better serve their customers.
A May 2001 study by Jupiter Media Metrix also noted the slow adoption
among businesses of online marketplaces. Since it is expensive for
suppliers to move online, there must be more of an incentive than to
simply meet the few buyers already online. Suppliers were urged to
research and study the top buyers, implement buyer training programs,
move existing buyers online, and attract new business through the
exchange. Critics have pointed out that the slow growth of online B2B
marketplaces is due in part to a heavy reliance on generating
transactions. As part of its study of online B2B marketplaces, Jupiter
%YPES OF E - COMMERCE

P a g e | 17
Media Metrix recommended focusing on strengthening the quality of
buyer-seller relationships, with new efficiencies to follow.
The Jupiter Media Metrix study also suggested that suppliers would be
in a better position to become "preferred vendors" if they offered more
value-added services online, including collaborative product design and
supply chain inventory. Buyers wanted suppliers to provide services
that would help simplify routine contact.
n May 2001 Accenture, a large consulting firm, released a study of B2B
buyers that categorized them into five types:
1. Traditionalists (28 percent), who were principally brand sensitive
but also valued customer service and good prices
2. eService Seekers (23 percent), for whom customer service was
the most important
3. Price Sensitives (21 percent), for whom value lay in the price
4. eSkeptics (17 percent), who valued brand above all
5. eVanguard (17 percent), who were comparison buyers.
The study aimed to help sellers understand online B2B buyers and help
them market to companies that were or could be potentially involved in
online buying.
n April 2001 nfoWorld reported that "fizzling interest in public [B2B]
exchanges, coupled with the general slowdown, is forcing e-business
vendors to refocus their development energies." The T periodical noted
that B2B technology vendors were shifting their focus away from
building public supplier marketplaces to integration technologies and
getting suppliers' content online. While some businesses began to
question the value of public B2B marketplaces, claiming they would
lose their competitive advantage by participating in a public exchange,
private exchanges and highly focused public exchanges were being
developed. One example of a specialty public exchange
was eScout.com, which worked with regional banks to help small
businesses make online purchases. Trade Matrix Network was a series
of private exchanges that focused on vertical industries and offered a
range of services, including financial settlement, collaboration, catalog
management, and fulfillment and logistics.
Analysts highlight several key factors for private and public exchanges
to survive and achieve success. For private exchanges, they include
%YPES OF E - COMMERCE

P a g e | 18
focusing on direct procurement, serving specialty markets, and offering
extra services. Keys for public exchanges include focusing on specific
business needs, providing economies of scale, providing scalable
technology, and building a community.
Business-to-Business (B E-Co22erce (2B) - Custo2er Service
Poor customer service has a negative effect on B2B e-commerce,
according to a May 2001 study by Jupiter Media Metrix. n terms of
responding to e-mail inquiries, the study found that only 41 percent of
B2B companies responded to customer e-mails within six hours, and
only half of those responses were deemed satisfactory. Approximately
64 percent answered e-mail inquiries within 24 hours, and 29 percent
said they never responded. As a result, there was a lack of confidence
in e-mail as a customer service channel.
B2B Web sites also need to make it easier for potential customers to
find what they want quickly. Remarkably, Jupiter Media Matrix found
that only two percent of B2B Web sites had search engines. Most
employed static "frequently asked questions" links, which were often
cumbersome to use. The research also showed that 70 percent of Web
users would not return to a site if they could not find the information
they were looking for.
Business-to-Business (B E-Co22erce (2B) - Pu-ic M,rket5,ces
And Priv,te Exch,nges
ndustry sponsored marketplaces (SMs) and consortia-led
exchanges were only beginning to roll out their technologies in mid-
2001 for their potential users to evaluate. Covisint, an e-marketplace
backed by the major auto makers General Motors, Ford Motor Co., and
DaimlerChrysler, was first announced in February 2000. As of mid-
2001, the online auto marketplace still was not fully operational,
illustrating the difficulties of integrating supply chains online.
The retail industry is served by several trading exchanges, including
GlobalNetXchange (GNX), Worldwide Retail Exchange (WWRE), and
Transora. WWRE was formed in early 2000 by a group of retailers
including the Gap, Target, Walgreen, Best Buy, and Albertson's, among
others. To help ensure the cooperation of companies that were
competitors, the exchange set up collaborative teams with
representatives from different retailers.
%YPES OF E - COMMERCE

P a g e | 19
GNX was also formed in early 2000. ts founding companies included
Sears, Roebuck & Co., Carre-four, and Oracle. While GNX's equity
partners promised a purchase volume of $260 billion through the
exchange, a year after GNX was founded only 5 percent of that amount
had been used. n 2001 GNX was close to offering member retailers
collaborative planning, forecasting, and replenishment (CPFR) services.
Transora is a consortia-led exchange serving packaged goods
manufacturers and the retail industry. t began with 57 original
investors, including companies such as Coca-Cola and Procter &
Gamble. As of 2001 it was putting together a services package for
potential users to consider. Among the components offered by Transora
were online catalogs, auctions, and procurement. t also offered a
collaborative planning, forecasting, and replenishment (CPFR) solution,
which enabled retailers and consumer product manufacturers to share
information. Transora's objective was to sign up large manufacturers,
selected primarily from its group of original investors. The next step
after that would be to present packaged subscription offerings to
retailers. As more retailers completed their own internal integration, they
would gain experience running some of their e-commerce activity
through consortia-led systems.
n February 2001 Transora and GNX announced plans to form a
megahub that would allow companies to collaborate with multiple
trading partners through a single exchange. The site planned to operate
as a transmissions application provider, translating ED into versions of
the platform-independent Extensible Markup Language (XML), thus
facilitating the migration from proprietary ED systems to nternet-based
commerce and furthering collaboration among trading partners.
One exchange serving the consumer electronics industry is e2open,
which was established in 2000 by BM, Lucent Technologies, and other
international computer manufacturers. The marketplace is for computer,
electronics, and telecommunications companies to buy and sell goods
and services. The exchange also provides the participating companies
with an opportunity for collaboration on product design and supply chain
visibility.
Exostar is an nternet-based marketplace that serves the aerospace
and defense community. Founding companies were BAE Systems,
Boeing, Lockheed Martin, Raytheon, and Rolls-Royce. The participation
of major manufacturers has attracted thousands of suppliers to register
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with the exchange. As of mid-2001 Exostar was planning to offer a
range of products and services. ts long-term goal was to provide a
measure of standardization to e-commerce in the aerospace industry.
Private exchanges are created by companies for their suppliers. They
may be set up with multiple tiers: e.g., first-tier suppliers, second-tier
suppliers, etc. All first-tier suppliers might be expected to join the
exchange or risk losing business. The cost of building a private trading
exchange platform could cost a Fortune 500 company anywhere from
$50 million to $100 million, according to AMR Research. The estimated
cost would include not just a supply chain hub, but also all of the
external enterprise systems that would link a very large company to its
supply chain partners, its customers, and other key trading partners.
Another technology firm, dapta, estimated that it would cost from $5
million to $125 million to build an industry-wide exchange, depending on
the complexity of the products to be traded. Other expenditures to
consider include integration costs, which Jupiter Media Metrix projected
could cost a consortialed trading exchange from $50 million to $100
million. Forrester Research estimated that individual companies could
spend between $5.4 million and $22.9 million to integrate with online
exchanges.
Large companies typically look to exchanges for procurement. Sales
efforts that are conducted through their own Web sites can be directed
at customers or to distributors and dealers. Thus, while Ford Motor Co.
participates in Covisint for procurement, it has
established FordDirect.com to provide an extranet for its dealers and
distributors. Boeing Company has run its online procurement and
supply chain management activities through Exostar. For its customers,
Boeing established MyBoeingFleet.com, which allows airplane owners
and maintenance workers to purchase replacement parts online and
provides them with extensive information about Boeing's products.
Typically, large companies will sell through multiple online channels.
Office-supply retailer Staples, for example, operated three different
portals for its business customers.
On the procurement side, some organizations are using reverse
auctions to let buyers, contractors, and service providers bid down
prices. Benefits include reducing the bidding process from several
months to a matter of days, being able to reach a broader audience of
suppliers, and enabling sellers to tailor their bids to the bidding process.
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n a reverse auction, the buyer requesting services or goods sets an
initial price. Matching engines and marketplaces can be used to make
the reverse auction known to a wider audience. Unlike a sealed bid
process, a reverse auction keeps the industry posted of the prices while
the bidding is in progress. This enables suppliers to submit additional
bids at lower prices and tailor their bids to the bidding process. n this
situation, suppliers need to know the lowest they could possibly go on a
particular deal and still make money. Small companies can utilize
reverse auctions to learn about the negotiation process and see a much
larger array of suppliers. n some cases reverse auctions can become a
reverse pricing tool that helps companies determine their own pricing as
well as that of their competitors. Software company Egghead.com, for
example, provides instant responses for larger-quantity product
requests by using NexTag's pricing engine in its online Volume Pricing
Center.
BuyUSA is a marketplace launched in 2001 by the U.S. Department of
Commerce to help primarily small and mid-size U.S. businesses find
international buyers and distributors for their products. The site allows
businesses outside the United States to view product catalogs and
obtain background information on U.S. companies. Other privately run
e-marketplaces designed to facilitate international trade
include GlobalSources.com and VLNX.com.Recognizing that 28 million
small U.S. businesses represent a lucrative market, nternet portals
serving consumers have added B2B features. Yahoo! Small Business
debuted in August 1998 and provides content, services, and commerce
opportunities. n March 2000 the portal launched Yahoo! Business to
Business Marketplace, which allows businesses to search for products
and services across industries. n January 2001 it created three Yahoo!
ndustry Marketplaces for T hardware, T software, and electronics.
AOL Time Warner went after the small business market through its
subsidiary Netscape, which introduced its small business portal
Netbusiness in September 2000. Microsoft's entry was bCentral, a small
business portal that was launched in October 1999 and has since
grown to offer a range of technologies and services.
Business-to-Business(E-co22erceOutook)
nternet-based B2B e-commerce remained in the early adopter
stage as of mid-2001. Public marketplaces continue to evolve and find
new ways to appeal to corporate sales directors and purchasing agents.
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They are adding services that would enable suppliers and buyers to
collaborate more closely on product development, inventory control,
and other areas. To survive and prosper they need to overcome the
limited functionality associated with earlier versions and make it easier
for suppliers to integrate their computer systems to work with the
marketplace. As more large companies develop private exchanges for
their supply chains, many suppliers will be forced to invest in their own
T infrastructure and develop the capability to conduct business online.
Business-to-consu2er (B2C)
Business-to-consumer (B2C,
sometimes also called Business-
to-Customer) describes activities
of businesses serving end
consumers with products and/or
services.
An example of a B2C transaction
would be a person buying a pair of
shoes from a retailer. The
transactions that led to the shoes being available for purchase,
that is the purchase of the leather, laces, rubber, etc. However,
the sale of the shoe from the shoemaker to the retailer would be
considered a (B2B) transaction.
%5es of -usiness to consu2ers
While the term e-commerce refers
to all online transactions, B2C stands for
"business-to-consumer" and applies to
any business or organization that sells
its products or services to consumers
over the nternet for its own use. When
most people think of B2C e-commerce,
they think of Amazon (Amazon), the online
bookseller that launched its site in 1995
and quickly took on the nation's major retailers. n addition to online
Figure 3
Figure 4
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retailers, B2C has grown to include services such as online banking,
travel services, online auctions, health information and real estate sites.
Peer-to-peer sites such as Craigslist also fall under the B2C category.
B2C e-commerce went through some tough times, particularly after the
technology-heavy Nasdaq crumbled in 2000. n the ensuing dotcom
carnage, hundreds of e-commerce sites shut their virtual doors and
some experts predicted years of struggle for online retail ventures.
Since then, however, shoppers have continued to flock to the web in
increasing numbers. n fact, North American consumers adopted e-
commerce so much that despite growing fears about identity theft, they
spent $172 billion shopping online in 2005, up from $38.8 billion in
2000.
By 2010, consumers are expected to spend $329 billion each year
online, according to Forrester Research. What's more, the percentage
of U.S. households shopping online is expected to grow from 39
percent this year to 48 percent in 2010.
n October 2010, an extension of B2C, B21 was coined (sometimes
referred to as B2). While B2C includes all manners of a business
marketing or selling to consumers, B21 is specifically targeted towards
an individual. B21 requires specific Personalization for that individual.
B21 requires nsight in order to create the personalized experience.



Consumei
(Bill)
Neichant
(Funus)
Acquiiei
Issuei
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Adv,nt,ges
According to marketing terms "B2C businesses played a large
role in the rapid development of the commercial nternet in the late 20th
century. Large sums of venture capital flowed to consumers in the form
of free online services and discounted shopping, spurring adoption of
the new medium." Business to Consumer e-consumer quickly
developed as an alternative way for companies to sell more products to
a larger market.B2C e-commerce provided not only multiple advantages
to a company but also to the consumers. The main advantages for both
the business and consumer are that by opening their market up to B2C
e-commerce trade they are reducing transactions costs. Businesses
usually ship their products to a number of stores to make them visible to
the consumer. However, by using B2C commerce they can instead
showcase all of their products on the internet which reduces the cost of
transaction. B2C also allows their customers to better access
information about different product and sellers which broadens the
selection available to their customers. Business to consumer
ecommerce is valuable to the economy because it creates a more
unique way for businesses and consumers to interact.

Unique ,ttri-utes
1. Negotiation: Selling to another business involves haggling over
prices, delivery and product specifications. Not so with most
consumer sales. That makes it easier for retailers to put a catalog
online, and it's why the first B2C applications were for buying
finished goods or commodities that are simple to describe and
price.
2. ntegration: Retailers don't have to integrate with their customers'
systems. Companies selling to other businesses, however, need
to make sure they can communicate without human intervention.
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Business-to-E25oee (B2E)
Business-to-employee (B2E) electronic
commerce uses an intra business network which
allows companies to provide products and/or
services to their employees. Typically,
companies use B2E networks to automate
employee-related corporate processes.
Examples of B2E applications include:
Online insurance policy management
Corporate announcement dissemination
Online supply requests
Special employee offers
Employee benefits reporting
401(k) Management
Business-to-govern2ent (B2G) (,so known ,s
Business to Ad2inistr,tion or B2A)

Business to Administration Business-to-the executive body of the
e-commerce refers to business and government
agencies to conduct e-commerce activities. For
example, the government will purchase the
details of the announcement on the nternet, by
way of online auction bidding, companies have
to tender through electronic means.
This approach is currently still in an initial pilot
phase, but may be developed very quickly, because the government
can establish the government's image in this way, through the
exemplary role in promoting e-commerce development. n addition, the
government can implement these e-commerce business management
Figure 5
Figure 6
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of the administrative things, such as government payments of import
and export licenses to use e-commerce to carry out statistical work,
businesses can apply through the online payment of taxes and tax
rebates.
China's Golden Customs Project, is to business e-commerce executive
agencies, such as the issuing import and export licenses, export tax
rebates, electronic customs declaration, and establishing our nation's
foreign trade as the leading e-commerce framework, and to promote
various types of e-commerce in China activities.
Business-to-2,chines (B2M)
E-Commerce is a fast emerging area within e-commerce. The
general idea is that companies can
link to remote machines via the
internet. Here is an example.
Assume that you drive a truck for
Coca Cola and that it is your job is
to refill Coke machines throughout
your community. You stop at a
high rise building that contains a
Coke machine on every floor - now
what? Do you leave the drinks behind and visit every Coke
machine first to determine how many of which brands are
needed? Do you carry cases of drinks with you as you go? With
B2M technology, the folks at Coke know exactly how many drinks
are in each machine by type of drink, and their accounting system
produces a restocking report advising the driver accordingly. n
this manner, Coca Cola can monitor their machines from afar to
determine if they need repair or restocking. This information is
then used to schedule efficient delivery routes that allows you to
restock the appropriate Coke machines just in time before the
inventory is depleted.
As another example, consider the $5 billion Ryder Truck
Company - Ryder System nc. When a truck rolls into one of the
company's maintenance bays, the attendant need only push a
button to instantly determine the status of that vehicle.
Specifically, a technician simply touches a probe on the end of a
handheld computer to a coin-shaped disk on the truck's cab that
Figure 7
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has been busy gathering information on engine performance and
fuel consumption from electronic sensors under the hood. All told,
these sensors track information related to 65 different aspects of
the truck to oil life, tire wear, filter life, gas mileage, and much
more. Prior to the introduction of this B2M system in the early
nineties, the company's mechanics were wrong almost 50% of the
time when it came to identifying problems with the trucks. Now the
sources of trouble are identified more quickly and a truck's
downtime is often cut in half. The company manages almost
10,000 technicians and 175,000 trucks, but with the B2M system,
inventory tracking, parts ordering, maintenance scheduling, and
personnel scheduling are streamlined. Additionally, Ryder uses
the information it collects on engine-part wear to negotiate longer
warranties from suppliers. According to Chief nformation Officer
Dennis M. Klinger, the new system cost $33 million but reportedly
paid for itself in just a few years.
Business-to-2,n,ger (B2M)

B2M is relative to the B2B, B2C, C2C e-commerce model, is a new e-
commerce model. E-commerce in relation to which these three are
essentially different, the basic difference is that the nature of the target
audience is different from the first three of the target audience is there
as a consumer's identity, while B2M targeted customer base is the
business or the product seller, or their workers, rather than the final
consumer.
Enterprises through network platform release of the company's products
or services, professional managers through the network to obtain the
firm's product or service information, and for the enterprises to provide
product sales or the provision of business services, business services
by managers to achieve sales of products or access to
services purpose. Professional managers through the provision of
services for businesses to obtain a commission.
B2M, compared with the traditional e-commerce has been a huge
improvement, in addition to the face of user groups is essentially
different from outside, B2M has a larger feature of advantages: the
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development of e-commerce line! The above three features of
traditional e-commerce: goods or services to buyers and sellers can
only be nternet users, while B2M model can goods and services on the
network went a full line of information, companies release information,
and managers to obtain business information, and will provide goods or
services to all people, whether online or offline. n fact, B2M is
essentially a proxy mode.

Consu2er-to--usiness (C2B)
Consumer-to-business (C2B)
is an electronic commerce business
model in which consumers
(individuals) offer products and
services to companies and the
companies pay them. This business
model is a complete reversal of
traditional business model where
companies offer goods and services
to consumers. We can see this
example in blogs or internet
forums where the author offers a link
back to an online business facilitating
the purchase of some product (like a
book on Amazon.com), and the
author might receive affiliate revenue
from a successful sale.
This kind of economic relationship is
qualified as an inverted business
type. The advent of the C2B scheme is due to major changes:
Connecting a large group of people to a bidirectional network has
made this sort of commercial relationship possible. The large
traditional media outlets are one direction relationship whereas
the internet is bidirectional one.
Figure 8
Figure 9
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Decreased cost of technology : ndividuals now have access to
technologies that were once only available to large companies (
digital printing and acquisition technology, high performance
computer, powerful software)

Consu2er-to-consu2er (C2C)

C2C with B2B, B2C, as is
one of several models of e-
commerce. The difference is that
C2C is a user to user mode,
C2C commerce platform for
buyers and sellers through an
online trading platform, so that
the seller can take the initiative
to provide goods online auction,
the buyer can choose to bid on
merchandise. Baidu C2C is
typical C2C,Taobao, pat net.
However, the growing need to
establish more effective c2c
capital oversight mechanisms to
prevent the use of financial
vulnerability Business Platform,
random freezing, and
misappropriation of funds the
seller to carry out financial
operations, to the financial
sector, many sellers' financial
risks.

Govern2ent-to--usiness (G2B)
G2B is the online non-commercial
interaction between local and central
government and the commercial business
sector, rather than private individuals.
For example http://www.dti.gov.uk is a
government web site where businesses
can get information and advice on e-
business 'best practice'. http://g2b.perm.ru is another example.
Figure
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Govern2ent-to-citizen (G2C)

Government-to-Citizen (abbreviated
G2C) is the communication link between a
government and private individuals or
residents. Such G2C communication most
often refers to that which takes place
through nformation and Communication
Technologies (CTs), but can also
include direct mail and media campaigns.
G2C can take place at the federal, state,
and local levels. G2C stands in contrast to G2B, or Government-to-
Business networks.
One such Federal G2C network is USA.gov: the United States' official
web portal, though there are many other examples from governments
around the world.

Govern2ent-to-e25oee (G2E)
Government-to-employees (abbreviated )
is the online interactions through
instantaneous communication tools
between government units and their
employees. G2E is one out of the four primary
delivery models of e-Government.
G2E is an effective way to provide E-
learning to the employees, bring them together
and to promote knowledge sharing among
them.
[4]
t also gives employees the possibility
of accessing information in regard to
compensation and benefit policies, training
Figure
Figure 2
Figure 3
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and learning opportunities and civil rights laws.G2E services also
includes software for maintaining personnel information and
records of employees.
G2E is adopted in many countries including the United States,
Hong Kong and New Zealand.

G2E AC%IVI%IES
E-payroll
E-training
E-records management
Enterprise case management
ntegrated acquisition
One-stop recruitment
ntegrated Human Resources System

Govern2ent-to-govern2ent (G2G)

Government-to-Government (abbreviated G2G) is the online non-
commercial interaction between Government organizations,
departments, and authorities and other Government
organizations, departments, and authorities. ts use is common in
the UK, along with G2C, the online non-commercial interaction of
local and central Government and private individuals,
and G2B the online non-commercial interaction of local and
central Government and the commercial business sector.
G2G systems generally come in one of two types:
nternal facing - joining up a single Governments departments,
agencies, organizations and authorities - examples include the
integration aspect of the Government Gateway, and the UK NHS
Connecting for Health Data SPNE.
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External facing - joining up multiple Governments S systems - an
example would include the integration aspect of the Schengen
nformation System (SS), developed to meet the requirements of
the Schengen Agreement.

M,n,ger-to-consu2er (M2C)
M2C is targeted at the e-
business models emerged B2M
extension of the concept. B2M
session, enterprises network
platform release of the
company's products or services,
professional managers through
the network to obtain the firm's
product or service information,
and for the enterprises to
provide product sales or the
provision of business services,
business services, through the
manager to achieve sales
of product or the purpose of
access to services. n the M2C
session, managers will face a
Consumer, the end consumer.
M2C is an extension of B2M,
B2M this new e-business models
is also an indispensable part of a
follow-up development. Manager
eventually to sell to the final
consumer, which is also a large
part of which is to the form
through e-commerce, similar to
C2C, but not exactly the
same. C2C is a traditional profit
model; to earn a basic difference
is the price of commodities in
and out. The M2C profit model is
rich and flexible multi-, which
can be spread, it can be a
commission. And the M2C
logistics management can be
more than the C2C diversity,
such as zero inventoried; cash
flow are also more advantages
than traditional C2C.




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Peer-to-5eer (P2P)

Peer-to-peer (P2P) computing or networking is a distributed
application architecture that partitions tasks or workloads between
peers. Peers are equally privileged, equipotent participants in the
application. They are said to form a peer-to-peer network of
nodes.
Peers make a portion of their resources, such as processing
power, disk storage or network bandwidth, directly available to
other network participants, without the need for central
coordination by servers or stable hosts. Peers are both suppliers
and consumers of resources, in contrast to the traditional client
server model where only servers supply (send), and clients
consume (receive).
The peer-to-peer application structure was popularized by file
sharing systems like Napster. The concept has inspired new
structures and philosophies in many areas of human interaction.
Peer-to-peer networking is not restricted to technology, but covers
also social processes with a peer-to-peer dynamic. n such
context, social peer-to-peer processes are currently emerging
throughout society.






A Peer to Peer system of nodes without central infrastructure


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Centralized Server Based Service Model
ARCHI%EC%URE OF P2P SYS%EMS
Peer-to-peer systems often implement an abstract overlay
network, built at Application Layer, on top of the native or physical
network topology. Such overlays are used for indexing and peer
discovery and make the P2P system independent from the physical
network topology. Content is typically exchanged directly over the
underlying nternet Protocol (P) network. Anonymous peer-to-
peer systems are an exception, and implement extra routing layers to
obscure the identity of the source or destination of queries.
n structured peer-to-peer networks, peers (and, sometimes, resources)
are organized following specific criteria and algorithms, which lead to
overlays with specific topologies and properties. They typically
use distributed hash table-based (DHT) indexing, such as in
the Chord system (MT).
Unstructured peer-to-peer networks do not provide any algorithm for
organization or optimization of network connections. n particular, three
models of unstructured architecture can be distinguished:
n pure peer-to-peer systems the entire network consists solely
of equipotent peers. There is only one routing layer, as there are
no preferred nodes with any special infrastructure function.
Hybrid peer-to-peer systems allow such infrastructure nodes to
exist, often called super nodes.
n centralized peer-to-peer systems, a central server is used for
indexing functions and to bootstrap the entire system. Although
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this has similarities with a structured architecture, the connections
between peers are not determined by any algorithm.

The first prominent and popular peer-to-peer file sharing system,
Napster, was an example of the centralized model. Free net and early
implementations of the protocol, on the other hand, are examples of
decentralized model. Modern gnutella implementations, Gnutella2, as
well as the now deprecated Kazaa network are examples of the hybrid
model.
P2P networks are typically used for connecting nodes via largely ad
hoc connections. Data, including digital formats such as audio files, and
real time data such as telephony traffic, is passed using P2P
technology.
A pure P2P network does not have the notion of clients or servers but
only equal peer nodes that simultaneously function as both "clients" and
"servers" to the other nodes on the network. This model of network
arrangement differs from the clientserver model where communication
is usually to and from a central server. A typical example of a file
transfer that does not use the P2P model is the File Transfer
Protocol (FTP) service in which the client and server programs are
distinct: the clients initiate the transfer, and the servers satisfy these
requests.
The P2P overlay network consists of all the participating peers as
network nodes. There are links between any two nodes that know each
other: i.e. if a participating peer knows the location of another peer in
the P2P network, then there is a directed edge from the former node to
the latter in the overlay network. Based on how the nodes in the overlay
network are linked to each other, we can classify the P2P networks as
unstructured or structured.

S%RUC%URED SYS%EMS
Structured P2P networks employ a globally consistent protocol to
ensure that any node can efficiently route a search to some peer that
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has the desired file, even if the file is extremely rare. Such a guarantee
necessitates a more structured pattern of overlay links. By far the most
common type of structured P2P network is the distributed hash
table (DHT), in which a variant of consistent hashing is used to assign
ownership of each file to a particular peer, in a way analogous to a
traditional hash table's assignment of each key to a particular array slot.

DIS%RIBU%ED HASH %ABLES

Distributed hash
tables (DHTs) are a class of
decentralized distributed
systems that provide a lookup
service similar to a hash table:
(key,value) pairs are stored in the
DHT, and any
participating node can efficiently retrieve the value associated with a
given key. Responsibility for maintaining the mapping from keys to
values is distributed among the nodes, in such a way that a change in
the set of participants causes a minimal amount of disruption. This
allows DHTs to scale to extremely large numbers of nodes and to
handle continual node arrivals, departures, and failures.
DHTs form an infrastructure that can be used to build peer-to-peer
networks. Notable distributed networks that use DHTs
include BitTorrent's distributed tracker, the Kad network, the Storm
botnet, YaCy, and the Coral Content Distribution Network.
Some prominent research projects include the Chord project, the PAST
storage utility, the P-Grid, a self-organized and emerging overlay
network and the CoopNet content distribution system .
DHT-based networks have been widely utilized for accomplishing
efficient resource discovery for grid computing systems, as it aids in
resource management and scheduling of applications. Resource
discovery activity involves searching for the appropriate resource types
that match the user's application requirements. Recent advances in the
domain of decentralized resource discovery have been based on
Figure 4
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extending the existing DHTs with the capability of multi-dimensional
data organization and query routing. Majority of the efforts have looked
at embedding spatial database indices such as the Space Filling Curves
(SFCs) including the Hilbert curves, Z-curves, k-d tree, MX-CF Quad
tree and R*-tree for managing, routing, and indexing of complex Grid
resource query objects over DHT networks. Spatial indices are well
suited for handling the complexity of Grid resource queries. Although
some spatial indices can have issues as regards to routing load-
balance in case of a skewed data set, all the spatial indices are more
scalable in terms of the number of hops traversed and messages
generated while searching and routing Grid resource queries.

UNS%RUC%URED SYS%EMS
An unstructured P2P network is formed when the overlay links are
established arbitrarily. Such networks can be easily constructed as a
new peer that wants to join the network can copy existing links of
another node and then form its own links over time. n an unstructured
P2P network, if a peer wants to find a desired piece of data in the
network, the query has to be flooded through the network to find as
many peers as possible that share the data. The main disadvantage
with such networks is that the queries may not always be resolved.
Popular content is likely to be available at several peers and any peer
searching for it is likely to find the same thing. But if a peer is looking for
rare data shared by only a few other peers, then it is highly unlikely that
search will be successful. Since there is no correlation between a peer
and the content managed by it, there is no guarantee that flooding will
find a peer that has the desired data. Flooding also causes a high
amount of signaling traffic in the network and hence such networks
typically have very poor search efficiency. Many of the popular P2P
networks are unstructured.
n pure P2P networks: Peers act as equals, merging the roles of clients
and server. n such networks, there is no central server managing the
network, neither is there a central router. Some examples of pure
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P2P Application Layer networks designed for peer-to-peer file
sharing are gnutella (pre v0.4) and Freenet.
There also exist hybrid P2P systems, which distribute their clients into
two groups: client nodes and overlay nodes. Typically, each client is
able to act according to the momentary need of the network and can
become part of the respective overlay network used to coordinate the
P2P structure. This division between normal and 'better' nodes is done
in order to address the scaling problems on early pure P2P networks.
As examples for such networks can be named modern implementations
of gnutella (after v0.4) and Gnutella2.
Another type of hybrid P2P network are networks using on the one
hand central server(s) or bootstrapping mechanisms, on the other hand
P2P for their data transfers. These networks are in general called
'centralized networks' because of their lack of ability to work without
their central server(s). An example for such a network is the eDonkey
network (often also called eD2k).

INDEXING AND RESOURCE DISCOVERY
Older peer-to-peer networks duplicate resources across each
node in the network configured to carry that type of information. This
allows local searching, but requires much traffic.
Modern networks use central coordinating servers and directed search
requests. Central servers are typically used for listing potential peers
(Tor), coordinating their activities (Folding@home), and searching
(Napster, eMule). Decentralized searching was first done by flooding
search requests out across peers. More efficient directed search
strategies, including supernodes and distributed hash tables, are now
used.
Many P2P systems use stronger peers (super-peers, super-nodes) as
servers and client-peers are connected in a star-like fashion to a single
super-peer.


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PEER-%O-PEER-LIKE SYS%EMS
n modern definitions of peer-to-peer technology, the term implies
the general architectural concepts outlined in this article. However, the
basic concept of peer-to-peer computing was envisioned in earlier
software systems and networking discussions, reaching back to
principles stated in the first Request for Comments, RFC 1.
A distributed messaging system that is often likened as an early peer-
to-peer architecture is the USENET network news system that is in
principle a clientserver model from the user or client perspective, when
they read or post news articles. However, news servers communicate
with one another as peers to propagate Usenet news articles over the
entire group of network servers. The same consideration applies
to SMTP email in the sense that the core email relaying network of Mail
transfer agents has a peer-to-peer character, while the periphery of e-
mail clients and their direct connections is strictly a clientserver
relationship. Tim Berners-Lee's vision for the World Wide Web, as
evidenced by his WorldWideWeb editor/browser, was close to a peer-
to-peer design in that it assumed each user of the web would be an
active editor and contributor creating and linking content to form an
interlinked web of links. This contrasts to the broadcasting-like structure
of the web as it has developed over the years.

ADVAN%AGES AND WEAKNESSES
n P2P networks, clients provide resources, which may
include bandwidth, storage space, and computing power. As nodes
arrive and demand on the system increases, the total capacity of the
system also increases. n contrast, in a typical clientserver
architecture, clients share only their demands with the system, but not
their resources. n this case, as more clients join the system, fewer
resources are available to serve each client.
The decentralized nature of P2P networks also increases robustness
because it removes the single point of failure that can be inherent in a
client-server based system.
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As with most network systems, unsecure and unsigned codes may
allow remote access to files on a victim's computer or even compromise
the entire network. n the past this has happened for example to
the FastTrack network when anti P2P companies managed to introduce
faked chunks into downloads and downloaded files (mostly MP3 files)
were unusable afterwards or even contained malicious
code. Consequently, the P2P networks of today have seen an
enormous increase of their security and file verification mechanisms.
Modern hashing, chunk verification and different encryption methods
have made most networks resistant to almost any type of attack, even
when major parts of the respective network have been replaced by
faked or nonfunctional hosts.
nternet service providers (SPs) have been known to throttle P2P file-
sharing traffic due to the high-bandwidth usage. Compared to Web
browsing, e-mail or many other uses of the internet, where data is only
transferred in short intervals and relative small quantities, P2P file-
sharing often consists of relatively heavy bandwidth usage due to
ongoing file transfers and swarm/network coordination packets. As a
reaction to this bandwidth throttling several P2P applications started
implementing protocol obfuscation, such as the BitTorrent protocol
encryption. Techniques for achieving "protocol obfuscation" involves
removing otherwise easily identifiable properties of protocols, such as
deterministic byte sequences and packet sizes, by making the data look
as if it were random.
A possible solution to this is called P2P caching, where a SP stores the
part of files most accessed by P2P clients in order to save access to the
nternet.
SOCIAL AND ECONOMIC IMPAC%
M,in ,rtice: Peer-to-5eer (2e2e)
The concept of P2P is increasingly evolving to an expanded usage as
the relational dynamic active in distributed networks, i.e., not just
computer to computer, but human to human. Yochai Benkler has coined
the term commons-based peer production to denote collaborative
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projects such as free and open source software and Wikipedia.
Associated with peer production are the concepts of:
peer governance (referring to the manner in which peer
production projects are managed)
peer property (referring to the new type of licenses which
recognize individual authorship but not exclusive property rights,
such as the GNU General Public License and the Creative
Commons licenses)
peer distribution (or the manner in which products, particularly
peer-produced products, are distributed)
Some researchers have explored the benefits of enabling virtual
communities to self-organize and introduce incentives for resource
sharing and cooperation, arguing that the social aspect missing from
today's peer-to-peer systems should be seen both as a goal and a
means for self-organized virtual communities to be built and fostered.
Ongoing research efforts for designing effective incentive mechanisms
in P2P systems, based on principles from game theory are beginning to
take on a more psychological and information-processing direction.

APPLICA%IONS
There are numerous applications of peer-to-peer networks. The
most commonly known is for content distribution

Content Deiver
Many file sharing networks, such as gnutella, G2 and
the eDonkey network popularized peer-to-peer technologies.
From 2004 on, such networks form the largest contributor of
network traffic on the nternet.
Peer-to-peer content delivery networks (P2P-CDN)
(Giraffic, Kontiki, gnite, RedSwoosh).
Peer-to-peer content services, e.g. caches for improved
performance such as Correli Caches.
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Software publication and distribution (Linux, several games);
via file sharing networks.
Streaming media. P2PTV and PDTP. Applications
include TVUPlayer, Joost, CoolStreaming, Cybersky-
TV, PPLive, LiveStation,Giraffic and Didiom.
Spotify uses a peer-to-peer network along with streaming
servers to stream music to its desktop music player.
Peercasting for multicasting streams.
See PeerCast, ceShare, FreeCast, Rawflow
Pennsylvania State University, MT and Simon Fraser
University are carrying on a project called LionShare designed
for facilitating file sharing among educational institutions
globally.
Osiris (Server less Portal System) allows its users to create
anonymous and autonomous web portals distributed via P2P
network.
Exch,nge of 5hsic, goods, services, or s5,ce
Peer-to-peer renting/sharing web platforms such
as Rentalic enable people to find and reserve goods, services,
or space on the virtual platform, but carry out the actual P2P
transaction in the physical world (for example: emailing a local
footwear vendor to reserve for you that comfy pair of slippers
which you've always had your eyes on).
Networking
Domain Name System, for nternet information retrieval.
See Comparison of DNS server software
cloud computing
Dalesa a peer-to-peer web cache for LANs (based on P
multicasting).
Science
n bioinformatics, drug candidate identification. The first such
program was begun in 2001 the Centre for Computational Drug
Discovery at the University of Oxford in cooperation with the
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National Foundation for Cancer Research. There are now
several similar programs running under the United Devices
Cancer Research Project.
The science net P2P search engine.
BONC
Se,rch
YaCy, a free distributed search engine, built on principles of
peer-to-peer networks.
Co22unic,tions networks
Skype, one of the most widely used internet phone applications
is using P2P technology.
VoP (using application layer protocols such as SP)
nstant messaging and online chat
Completely decentralized networks of peers: Usenet (1979)
and WWVnet (1987).
Gener,
Research like the Chord project, the PAST storage utility,
the P-Grid, and the CoopNet content distribution system.
JXTA, for Peer applications. See Collanos
Workplace (Teamwork software), Sixearch
Misce,neous
The U.S. Department of Defense has started research on P2P
networks as part of its modern network warfare strategy. n
May, 2003 Dr. Tether. Director of Defense Advanced Research
Project Agency testified that U.S. Military is using P2P
networks.
Kato et al.'s studies indicate over 200 companies with
approximately $400 million USD are investing in P2P network.
Besides File Sharing, companies are also interested in
Distributing Computing, Content Distribution.
Wireless community network, Netsukuku
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An earlier generation of peer-to-peer systems were called
"metacomputing" or were classed as "middleware". These
include: Legion, Globus
Bitcoin is a peer-to-peer based digital currency.

HIS%ORICAL PERSPEC%IVE
Tim Berners-Lee's vision for the World Wide Web was close to a
P2P network in that it assumed each user of the web would be an
active editor and contributor, creating and linking content to form an
interlinked "web" of links. This contrasts to the current broadcasting-like
structure of the web.
Some networks and channels such as Napster , Open NAP and RC
serving use a clientserver structure for some tasks (e.g., searching)
and a P2P structure for others. Networks such asgnutella or Free
net use a P2P structure for nearly all tasks, with the exception of finding
peers to connect to when first setting up.
P2P architecture embodies one of the key technical concepts of the
nternet, described in the first nternet Request for Comments, RFC 1,
"Host Software" dated April 7, 1969. More recently, the concept has
achieved recognition in the general public in the context of the absence
of central indexing servers in architectures used for exchanging
multimedia files.

NE%WORK NEU%RALI%Y CON%ROVERSY
Peer-to-peer applications present one of the core issues in
the network neutrality controversy. n October 2007, Comcast, one of
the largest broadband nternet providers in the USA, started blocking
P2P applications such as BitTorrent. Their rationale was that P2P is
mostly used to share illegal content, and their infrastructure is not
designed for continuous, high-bandwidth traffic. Critics point out that
P2P networking has legitimate uses, and that this is another way that
large providers are trying to control use and content on the nternet, and
direct people towards a client-server-based application architecture.
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The client-server model provides financial barriers-to-entry to small
publishers and individuals, and is quite inefficient for sharing large files.





Bi-iogr,5h
Amazon. (n.d.). Retrieved from Amazon.com: http://www.amazon.com/
ebay. (n.d.). Retrieved from ebay: http://www.ebay.com/
Napster. (n.d.). Retrieved from Wikipedia:
http://en.wikipedia.org/wiki/Napster
zappose. (n.d.). Retrieved from wiki:
http://en.wikipedia.org/wiki/Zappos.com






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REFERENCES

http://en.wikipedia.org/wiki/Electronic_commerce
http://www.digitsmith.com/ecommerce-definition.html
http://www.ecommercesources.com/different-types-of-ecommerce/
http://ezinearticles.com/?Types-of-E-Commerce&id=2002490
http://en.wikipedia.org/wiki/Business-to-business
http://en.wikipedia.org/wiki/Business-to-consumer
http://en.wikipedia.org/wiki/Peer-to-peer
http://en.wikipedia.org/wiki/Consumer-to-business
http://en.wikipedia.org/wiki/Business-to-government

i
Kevin Kelly: We Are the Web Wired magazine, ssue 13.08, August 2005
ii
Tkacz, Ewaryst; Kapczynski, Adrian (2009). nternet%echnicalevelopmentandApplications. Springer. pp. 255. SBN 978-
3642050183. Retrieved 2011-03-28. "The first pilot system was installing in Tesco in the UK (first demonstrated in 1979 by Michael
Aldrich)."
iii
"eBay acquires PayPal". eBay.
iv
"Press Release". Domain Name Wire.
v
"Press Release". TechCrunch.
vi
"Press Release". Reuters. October 27, 2009