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Assignment: MBA – SEM IV

Subject Code: MI0030

E-Commerce and Web Design

Set I
Q.1. What are the developments that have contributed to the
emergence of the internet as an electronic commerce infrastructure?
Answer: The role of the Internet in the evolution of e-commerce has been so
crucial that the history of e-commerce will remain incomplete without the
inclusion of the history of the Internet.

Using the Internet, you can communicate with other people throughout the world
by means of e-mail, read online versions of newspapers, magazines, academic
journals, and books, join discussion groups on almost any conceivable topic,
participate in games and simulations, and obtain free computer software. In
recent years, the Internet has allowed commercial enterprises to connect with
one another and with customers. Today, all kinds of businesses provide
information about their products and services on the Internet. Many of Business
use internet to market or sell their product or services. The part of internet is
known as WWW or World Wide Web or simply web, which is a subset of
computers on the internet which are connected to each other in a specific way
that makes those computers and their contents easily accessible to each other.
The most important thing about the Web is that it includes an easy-to-use
standard interface. This interface makes it possible for people who are not
computer experts to use the World Wide Web to access a variety of Internet
resources.

In the early 1960s, the US Department of Defense became very much concerned
about the possible effects of a nuclear attack on its computing facilities. The
Defense Department realized the need for powerful computers for coordination
and control. The powerful computers of that time were all large mainframe
computers. So the Defense Department began examining ways to connect these
computers to each other and also to weapon installations that were distributed
all over the world. The Defense Department agency, charged with this task, hired
many of the best communications technology researchers and funded research
at leading universities and institutes to explore the task of creating a worldwide
network that could remain operational even if parts of the network were
destroyed by enemy military action or sabotage. These researchers worked to
devise ways to build networks that could operate independently-that is, networks
that would not require a central computer to control network operations.

The world’s telephone companies were the early models for networked
computers, because early networks of computers used leased telephone
company lines for their connections. Telephone company systems of that time
established a single connection between sender and receiver for each telephone
call, and that connection carried all the data along a single path. When a
company wanted to connect computers it owned at two different locations, it
placed a telephone call to establish the connection and then connected one
computer to each end of that single connection.

The Defence Department was concerned about the inherent risk of this single-
channel method for connecting computers. So its researchers developed a
different method of sending information through multiple channels. In this
method, files and messages are broken into packets and labeled electronically
with codes about their origin and destination. The packets travel from computer
to computer along the network until they reach their destination. The destination
computer collects the packets and reassembles the original data from the pieces
in each packet. Each computer that an individual packet encounters on its trip
through the network determines the best way to move the packet forward to its
destination.
In 1969, these Defense Department researchers used this network model to
connect four computers-one each at the University of California at Los Angeles,
SRI International, the University of California at Santa Barbara, and the
University of Utah. During the subsequent years, many researchers in the
academic community connected to this network and contributed to technological
developments that increased the speed and efficiency with which the network
operated. At the same time, researchers at other universities were creating their
own networks using similar technologies.

The upshot was the Internet Protocol (IP), which enabled any number of
computer networks to link up and act as one-and eventually it was given the
name, the Internet. This meant that the communication network among the
computers was not dependent on any single computer to operate, and so could
not be shut down by destroying one or even several of the computers.

Although the goals of the Defense Department network were still to control
weapons systems and transfer research files, other uses of this vast network
began to appear in the early 1970s. In 1972, a researcher wrote a program that
could send and receive messages over the network. Thus was born the e-mail
which came to be widely used very quickly. The number of network users in the
military and education research communities continued to grow. Many of these
new participants used the networking technology to transfer files and access
remote computers. The network software included two tools for performing these
tasks. File Transfer Protocol (FTP) enabled users to transfer files between
computers, and Telnet let users log on to their computer accounts from remote
sites. Both FTP and Telnet are still widely used on the Internet for file transfers
and remote logins, even though more advanced techniques are now available
that allow multimedia transmissions such as real-time audio and video clips.

The first e-mail mailing lists also appeared on these networks. In 1979, a group
of students and programmers at the Duke University and the University of North
Carolina started Usenet, an abbreviation for Users News Network. Usenet allows
anyone who connects to the network to read and post articles on a variety of
subjects. The Defense Department’s networking software became more widely
used as academic and research institutes realized the benefits of having a
common communications network. The explosion of personal computer use
during that time also helped more people become comfortable with computing.
In the late 1980s, these independent academic and research networks merged
into one infra-structure-the Internet that links today hundreds and thousands of
networks to one another.

Q.2. Explain the various E-commerce applications in industry.

Answer: E-Commerce applications in Industry are as under:

1. Information Delivery Transport and E-Commerce Applications:


Transport providers are principally telecommunications, cable, and
wireless industries; computer networks including commercial networks
such as CompuServe or America Online; and public networks such as the
Internet. As noted earlier, the transport system does not function as a
monolithic system, in the sense that there is no single Interstate 80 that
connects the digital equivalent of New York’s George Washington Bridge
to San Francisco’s Bay Bridge. Instead, the architecture is a mix of many
forms of high-speed network transport whether it is land-based telephone;
air-based wireless, modem-based PCs, or satellite transmissions (see Table
below).

Table: Transport Routes


Information Transport
Information Delivery Methods
Providers
Long-distance telephone lines;
Telecommunication companies
local telephone lines
Cable TV coaxial, fiber optic, and
Cable television companies
satellite lines
Internet; commercial on-line
Computer-based on-line servers
service providers
Cellular and radio networks;
Wireless communications
paging systems

Literally, the transport routes for e-commerce applications are boundless. The
distribution of information has become a competitive market with a combination
of offense and defense. Playing on the defense are telephone companies and
cable television companies, providers that have enjoyed monopoly positions for
decades. Now, however, their enormous investments in wiring and equipment
have become vulnerable to new competition.

Playing offense are computer companies that offer new hardware capabilities
and software programs with the potential to define new markets. The computer
companies are banking on public networks such as the Internet, which is
expanding at an astounding pace. Another emerging threat will be wireless
communications known as personal communications services, a form of walk
around telephony that bypasses the traditional telecommunications companies
and uses wireless communications.

Each highway route provider faces a different but no less daunting set of
challenges:

 Telecom-based: These providers, the most visible (and vocal) of all


competitors, include long-distance and local telephone service providers.
For the phone companies, the breakthrough for e-commerce applications
delivery came in 1991 when scientists found a way to do what everybody
had assumed was impossible: squeeze a video signal through a telephone
wire. The technology, known as asymmetric digital subscriber line (ADSL),
has some unresolved drawbacks: It cannot handle live transmissions, and
the picture it produces is not as clear as that provided by a well-tuned
cable hookup. Researchers have recently improved the quality of the pic-
ture and with further compression expect to accommodate several chan-
nels of live video over a single telephone wire.
 Cable-based: These providers depend on coaxial cable as transport roads
and will. Help determine which broadband applications and services the
viewing public prefers. All leading cable providers are conducting trials
with a variety of hardware and software; and most are expected to use
fiber optic cable and coaxial wire as the delivery medium. The strategy
among cable companies is to develop a "network neutral" content that
uses digital compression and is adaptable to alternative delivery systems,
such as wireless and satellites
 Computer network-based: These providers are often dial-up linkages of
lower bandwidth when compared to telecom and cable highways.
Bandwidth is analogous to the number of lanes on a highway. Examples of
on-line transport architectures are CompuServe, Prodigy, and America
Online, which often tend to serve as both a transport road and content
providers.
 Wireless: These operators are typically radio-based-cellular, satellite and
light-based-infra red. In fact, some of the most exciting transport
architectures are invisible. New wireless-based systems require new ways
of thinking about information delivery.
2. Inventory Management and Organizational Applications: With
borders opening up and companies facing stiff global competition for the
first time in decades, managers know how they need to catch on quickly
to better ways of doing international business. Adaptation would include
moving toward computerized, “paperless” operations, to reduce trading
costs and facilitate the adoption of new business processes.

One often-targeted business process is inventory management. Solutions


for these processes go by different names. In the manufacturing industry
they are known as just-in- time inventory systems, in the retail industry
as quick response programs and in the transportation industry as
consignment tracking systems.

Just-In-Time Manufacturing: JIT Purchasing, considered an integral part


of JIT. It has received considerable attention in electronic commerce. It
allows a manufacturer to incorporate its suppliers’ efforts towards
eliminating waste in the upstream portion of the manufacturing cycle. JIT
purchasing focuses on the reduction of inventories throughout the
logistical systems of the manufacturing firms involved and provides a
careful audit of the production process.

Quick Response Retailing: Quick response (QR) is a version of JIT


purchasing tailored for retailing. To reduce the risk of being out of stock,
retailers are implementing QR systems. QR provides for a flexible
response to product ordering and lowers costly inventory levels. QR
retailing focuses on market responsiveness while maintaining low levels of
stocks.

3. Supply Chain Management: It is also called “extending” which means


integrating the internal and external partners on the supply and process
chains to get raw materials to the manufacturer and finished products to
the consumer. SCM rests on the premise that product excellence alone
fails to guarantee corporate success. In fact, customers expect many
services, including the prompt delivery of products to precise locations
with near-perfect administrative and physical quality.
Supply Chain Management includes the following functions:

 Supplier Management
 Inventory Management
 Distribution Management
 Channel Management
 Payment Management
 Financial Management
 Sales Force Productivity

4. Work Group Collaboration Applications: For work group applications,


e-commerce represents the holy grail of connectivity: a ubiquitous
internetwork that enables easy and inexpensive connection of various
organizational segments to improve communication and information
sharing among employees and to gather and analyze competitive data in
real-time. E-commerce also facilitates sales force automation by enabling
salespeople to carry product and reference information in one portable
device. Other applications, such as videoconferencing, document sharing,
multimedia, email are expected to reduce travel and encourage
telecommuting. Businesses might also save on reduced processing costs
by improving the distribution channel for documents and records to
suppliers, collaborators and distributors.

Q. 3. Describe the rules of thumb for designing good websites.

Answer: Rules of thumb for designing good websites are listed as


follows:

Page Loading Efficiency: The temptation to overload a page with graphics


should be resisted. A few well-chosen graphics are fine, but too much on a page
and the visitor may become frustrated with the required time to load a page, and
"click, click" they are off to another site. Frames also increase the loading time,
and if the site sells or exchanges advertising space in which banners will appear,
these items will also slow down the load time. Web site designers should review
the load time periodically from an off-site connection with a connection speed
that is comparable to a reasonably low connection speed. Users with lower speed
modems than this will probably browse the Internet with their graphics options
turned off. For these users, the web site should be designed with a text-only
option, which displays text in lieu of graphics and contains the same hypertext
links.

Simplicity: Avoid clutter on web pages. If the business has a lot of information
to convey, organize it well and spread it out over multiple pages. Unlike printed
advertisements, web site hosting costs are so low and competitive that the
number of pages is typically not a significant cost factor. Do not go overboard,
however, and place so little information on each page that the user must click to
advance to the next page after reading only three or four sentences. A guideline
is to use about 60 characters per line. Also, avoid long pages that require a lot of
scrolling. Again, organizing the material well can preclude excessive scrolling
from being necessary.
Use the Space Wisely: Do not ramble on; make each statement count. Just
because web space is relatively cheap does not mean that visitors want to weed
through hoards of verbose commentaries and other non value-added information
to find the items desired.

Create a Reason to Return: Once a visitor comes to the site, give them a
reason to return. Suggest they bookmark the site – it works! Some suggestions
for items that may cause the visitor to return:

 daily or weekly specials;


 daily or weekly updates to the site that are clearly labeled, such as
editorials, current events, projects, recipes, etc.;
 frequent buyer programs;
 contests; and
 events, such as hosting a chat session with a guest celebrity or public
figure.

Framing: A frame is a section of the viewer’s computer screen. A screen can be


split into multiple sections that can load different web pages, even those from
other sites. The use of frame has it benefits and its drawbacks. Framing is useful,
for example, for providing a directory of options in one frame and the contents of
each option in another frame. It helps the visitor to know where they are and
where they have been, through the use of highlighted hypertext links. The
drawbacks are that they slow the load time, not all browsers support frames, and
most search engines cannot read the hypertext links in the frames. Over time,
these drawbacks will most likely be non-issues.

Tables and Fonts: Tables are useful for providing structure to text that will not
be lost due to the size of the visitor’s screen and the size of the viewing window,
which is affected by the viewer’s web browser. Whenever possible, avoid using
all uppercase letters as they are more difficult for the eye to follow. Further, the
use of fancy fonts may look good on the web designer’s screen, but the fonts
displayed to visitors are limited to those that are available on their own
computer. The Times and Helvetica fonts are good fonts for readability on web
sites. As mentioned earlier, try to keep line lengths less than 60 characters per
line.

Graphics: Graphics can enhance a web site when used properly. Attempt to use
images that are no larger than 70k or the load time may annoy visitors.
Fortunately, many image software packages allow the user to view the image in
different storage sizes and indicate the approximate load time for each size. The
larger the image, the better the image, but a slightly less vivid image that loads
faster may payoff in terms of retaining visitors. If picture clarity is important, for
example for inventory items, allow the user to choose to view a bigger, clearer
picture by clicking on the smaller picture.

Interlaced Graphics: Images that gradually appear sharper are called


interlaced graphics. Not everyone appreciates these pictures, and some people
find them annoying. Designers that use interlaces graphics contend that the
visitor is able to see the picture faster, albeit fuzzy, and has something to view
while the remainder of the picture is loading and sharpening.
GIF vs. JPEG files: Either format can be used. The primary difference between
the two file types is the compression techniques used. GIF files are typically
more efficient for solid color images, such as logos, or images with large regions
of solid color. JPEG formats will typically yield better results for multi-colored
images or photographs in terms of best quality for the size.

Colors and Contrast: Most web site designers agree that dark text on light
backgrounds works best. The key is to have enough contrast between the text
and the background. Some colors work together and some do not; a traditional
color wheel is useful for choosing contrasting colors.

Purchasing Information: Sites that sell their products/services on-line should


clearly post policies in an easily found place regarding these items: Tax rates,
Shipping rates, Shipping schedules, Return policy, Privacy of transaction and
Security of data that is transmitted. Further, items selected for purchase (placed
in a shopping cart) should be easily reviewed at any point. The total bill,
including taxes and shipment cost, should be displayed to the user before asking
for payment information, such as credit card data.

Tracking Data: In order to analyze the success or contribution of a site, certain


data need to be tracked. Some useful information includes:

 number of different visitors (not repeat visitors)


 number and frequency of repeat visitors;
 location of site prior to visit, including the search engine used to locate the
site, if applicable;
 length of time of visit;
 pages visited;
 items examined by visitors;
 domain names of visitors;
 country codes of visitors; and
 purchases made, if applicable.

Cookies may be necessary in order to avoid double counting. The examination of


correlations between some of the above items can provide useful information,
such as the correlation between the location of prior site and length of time
visited or purchases made. For example, a site selling infant clothing may notice
a strong correlation between prior site and length of visit if a significant portion
of its visitors are arriving via an advertising banner placed on a site similar to
Parenthood.com. Obviously, much analysis of such data is necessary before any
conclusions should be drawn and used to make future decisions, however, such
data contains a wealth of information if collected and analyzed properly.

Using Navigation elements: Navigation elements are important because a


viewer may not always enter a website from its home page. He or she may enter
through any page of the site or search engine or a hyperlink from a different site.
In this situation it is important to have a way to get to site’s home page or other
major pages. A navigation bar is a series of icon or text hyperlinks to major
pages of a website. The position of navigation bars should be consistent in all the
pages of the website. Navigation bars using icons are often positioned at the top
of the page. Another important navigational technique is the inclusion of top of
page hyperlinks at the bottom of each web page, which would enable a viewer to
quickly return to top of the same page after having scrolled down.
Maintaining consistency: Web pages design emphasizes consistency in its
presentation. The
e-business name and contact information is important as customer may print a
copy of individual pages from the website and may want the name and the
contact information available on the printout.

Designing a website for a variety of displays: Majority of the audience the


display is the function of monitor and the size and colour capabilities. It is
important to keep in mind that the diversity goes end here, because users may
use Television to watch webpage. Other may view using Personal Digital
Assistant (PDA), also referred to as a palmtop or a cell phone, sight impaired
users may be listening to your page and not viewing it.

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