Exhibit 1.

2 A Framework for Electronic Commerce

To engage in e-commerce & e-business an organization needs an infrastructure that allows communication :

among employees b/w employees and customers online connectivity with suppliers, vendors and sales force in field This environment makes it possible to promote value chain and enforce SCM for everyday business

Intranet
Simply an organization wide software and information distribution system that applies Internet technology and standards to a closed network within the organization. Connects various pieces of information and communication technologies in a way that all authorized resources of an organization are readily available to any authorized person , wherever and whenever
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Intranet

cntd.

Runs on client/server environment and local area network configuration. Internet protocol (IP) connects the computers. Internal company network is separated from other networks from firewall, to prevent unauthorized access.
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Technical difference between Internet and Intranet

They are same but only selected people are allowed to connect to an Intranet

Intranet components:
Network (TCP/IP as an Internet derived communication protocol and client/server architecture)

Security (Firewalls)
Hardware and software

Hardware & software

Server stores all applications and web pages Client employees PC that accesses the Intranet information available on server Web server- cluster of software that manages and updates HTML files and allows online communication with other programs. Browser- software installed on the users PC for accessing and presenting HTML files
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cntd.
Authoring and web development tools- used by content publishers to create pages eg. Java, Microsoft Active server pages Hypertext Markup Language (HTML)programming language that manages and controls the way intranet information is displayed on users screen. Search engines- to find the information quickly
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WEB BASED TOOLS FOR e-COMMERCE

Depending on your site's purpose , you may need few or many tools in order to make your online business venture work
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Are you going to design your site yourself ?

experience and /or training in Web design (unless you go with the template or wizard-based tools that many allinclusive services offer) a good computer with plenty of RAM (128 Mb and up) and hard drive space (6 GB minimum) web design software -- or a text editor (if you know html) a scanner or digital camera -- for product or service photos image editing software illustration software to create graphics FTP software for uploading files to your Web site
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Are you going to sell products from your site?

a merchant account -- or some way to accept payments shopping cart software -- or some other way for shoppers to enter and keep up with their orders secure servers if you're accepting credit card payment or other personal payment information online software (or other process) to keep track of inventory and orders
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Do you have a large number of products or services that need listing on your Web site?

a database of product names, descriptions, pricing, and photos a system for establishing product numbers a system for inventory management technical know-how in incorporating the database into your Web site

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Concepts for Web

Hypertext way of formatting pages with embedded links that connect documents and links pages to other objects HTTP protocol to transmit web pages over Internet URL addresses at web pages can be found HTML programming language used to create most web pages. It has fixed set of tags used for formatting web pages XML markup language that allows describing data & info Web server software software that enables the delivery of web pages to the clients. It also provides security services, FTP, search engine, and data capture services. Web clients devices capable of making HTTP request and displaying HTML pages. Web browsers displays web pages and added features 14 like e-mail, newsgroup etc.

Features/tools supporting ecommerce

E-mail- uses a series of protocol to transfer messages containing text, images, sound, video Search engines- identifies web pages matching a query. FTP - Part of TCP/IP which permits transfer of files from server to client and vice versa. Intelligent agents (BOTS)- s/w programs that gather/filter information on a specific topic Chat- real time communication b/w users Streaming media- enables music, video and large files to be send to the users in chunks for an uninterrupted display Cookies- small text files that allow a website to store information about a user, and are used as an marketing 15 tool for e-commerce

Tools for buying/selling

Paypal and Propay that let you set up accounts to accept payment from customers without having to have a merchant account. There are still charges and limitations Electronic checks can also be accepted with the right printing software and validation programs. Your customers would input their checking account and other identification information and you would print the check on blank check stock and deposit it as you would a written check. Eg. PayByCheck
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Tools assisting on buying/selling sites

Shopping cart software: a way to let your Web shoppers select the products they want, preview the sale amounts, delete items they change their minds about, enter in their payment and shipping information, and then cancel the order completely. (OK, hopefully they won't do that last part.) Having a good shopping cart interface is very important for a good ecommerce-enabled Web site. The easier and more intuitive you make it for your shoppers the more sales and the more repeat business you can have.
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Additional E-commerce tools for improved performance

Active server pages(ASP)-sever side programming Common gateway interface(CGI) -set of standards b/w a browser and program running on a server that allows for interaction b/w server and user Java, JSP, JavaScript-To create interactivity and active content on client side Order Managers- useful when you sell too much, to handle the complexities of fulfilling, drop-shipping, returns, cancellations, split orders Customer on-site tracking- enables a site to create a site log for each customer visit, aiding in personalizing the shopping experience Site tracking and reporting system- monitors the number of unique visitors, pages visited and products purchased Inventory management system- provides a link to 18 production and suppliers to facilitate order replenishment

ELECTRONIC DATA INTERCHANGE (EDI)

EDI
Communication tool to handle most B2B traffic Two systems communicate using a standardized electronic format Transfer of business information among businesses using a specific standard format Information exchanged could be transaction data, request for quotes(RFQ), order acknowledgement, shipping status, invoice etc transfer of structured data, by agreed message standards, from one computer system to another without human intervention.
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Components of EDI
Computer-to-computer Interbusiness

Standard format
Standard transaction

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Computer-to-computer

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Interbusiness

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Standard format

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EDI standards
Some major sets of EDI standards: The UN-recommended UN/EDIFACT is the only international standard and is predominant outside of North America. The US standard ANSI ASC X12 (X12) is predominant in North America. The TRADACOMS standard developed by the ANA (Article Numbering Association now known as GS1) is predominant in the UK retail industry. The ODETTE standard used within the European automotive industry
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Advantages of EDI
Cost reduction and time saving Improved B2B problem resolution Accuracy with integrity

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Drawbacks of EDI
It is point to point and requires special hardware and software Requires expensive VAN networking for peak efficiency As a system, not easy to use, learn or implement

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Justifying EDI
Volume of data Frequency of data transmission and reception

Content sensitivity
Time sensitivity

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