Free Solved Question Paper of BCS-062 : E-COMMERCE (June 2022)

1. (a) Define the term m-Commerce. Explain its attributes. What are its advantages? (10 marks)

Answer :

Definition of m-Commerce:

M-Commerce (Mobile Commerce) refers to the buying and selling of goods and services through wireless handheld devices such as smartphones and tablets. It is a subset of e-commerce that enables commercial transactions to be conducted using mobile devices over wireless networks, allowing users to access online shopping services from anywhere at any time.

Attributes of m-Commerce:

1. Mobility and Portability:

• Users can conduct transactions while on the move
• Not restricted to fixed locations like desktop computers
• Lightweight devices enable easy portability
• Seamless connectivity across different locations

2. Ubiquity:

• Available anywhere with network coverage
• 24/7 accessibility to services
• Global reach through cellular networks
• Instant access to information and services

3. Personalization:

• Customized content based on user preferences
• Location-based personalized services
• Individual user profiles and settings
• Targeted marketing and recommendations

4. Localization:

• GPS-enabled location-aware services
• Local business and service discovery
• Regional content and offers
• Proximity-based notifications

5. Instant Connectivity:

• Real-time communication capabilities
• Push notifications for updates
• Immediate transaction processing
• Live customer support integration

6. Context Sensitivity:

• Adapts to user's current situation
• Time-sensitive offers and services
• Environmental awareness
• Contextual information delivery

Advantages of m-Commerce:

1. Convenience and Accessibility:

• Shop anytime, anywhere without physical constraints
• No need to visit physical stores or use computers
• Quick and easy transaction processing
• Voice-activated shopping capabilities

2. Enhanced User Experience:

• Touch-based intuitive interfaces
• Faster loading times with optimized apps
• Biometric authentication for security
• Augmented Reality (AR) shopping experiences

3. Cost Effectiveness:

• Lower operational costs for businesses
• Reduced infrastructure requirements
• Automated transaction processing
• Efficient customer service through chatbots

4. Instant Communication:

• Real-time notifications and updates
• Immediate customer support
• Instant payment confirmations
• Live chat and video assistance

5. Location-Based Services:

• Nearby store locators and directions
• Local deals and promotions
• Geo-fencing marketing campaigns
• Location-specific inventory availability

6. Social Integration:

• Easy sharing on social media platforms
• Social commerce through apps
• Friend recommendations and reviews
• Collaborative shopping experiences

1. (b) Define the term e-Commerce. Explain its workflow. What are its advantages and disadvantages over m-Commerce? (10 marks)

Answer :

Definition of e-Commerce:

Electronic Commerce (e-Commerce) refers to the buying and selling of goods and services over electronic networks, primarily the Internet. It involves online transactions between businesses, consumers, and governments, encompassing various activities such as online retail, digital payments, electronic data interchange, and digital marketing.

E-Commerce Workflow:

Workflow Steps Explanation:

1. Customer Interaction: Customer accesses the e-commerce website/platform
2. Product Discovery: Browse categories, search products, apply filters
3. Product Evaluation: View detailed product information, reviews, specifications
4. Cart Management: Add/remove items, update quantities
5. User Authentication: Login to existing account or create new account
6. Checkout Process: Review cart, enter shipping and billing details
7. Payment Processing: Select payment method and complete transaction
8. Order Management: Confirmation, inventory update, order processing
9. Fulfillment: Packaging, shipping, tracking, delivery
10. Post-Purchase: Customer feedback, returns, support

Advantages of e-Commerce over m-Commerce:

1. Better Display and Visualization:

• Large screen real estate for detailed product views
• Better image quality and zoom capabilities
• More comprehensive product information display
• Enhanced multimedia content presentation

2. Enhanced Processing Power:

• Faster loading of complex websites
• Better handling of multiple tabs and applications
• Superior multitasking capabilities
• Advanced graphics and animation support

3. Improved Data Entry:

• Full-sized keyboard for easier typing
• More accurate form filling
• Better copy-paste functionality
• Reduced input errors

4. Better Security Features:

• Advanced security software and firewalls
• Better protection against malware
• More robust authentication methods
• Enhanced fraud detection capabilities

Disadvantages of e-Commerce compared to m-Commerce:

1. Limited Mobility:

• Restricted to fixed locations with computers
• Cannot shop while commuting or traveling
• Requires dedicated time and space
• Less spontaneous purchasing behavior

2. Accessibility Constraints:

• Requires computer and internet connection
• Not available during power outages
• Limited accessibility for non-tech-savvy users
• Dependency on desktop/laptop availability

3. Reduced Instant Communication:

• No push notifications when away from computer
• Delayed response to time-sensitive offers
• Limited real-time customer support
• Missing location-based services

4. Lower Personalization:

• Cannot utilize location-based services
• Limited context-aware features
• Fewer personalization options
• Less integrated social features

2. (a) Explain native Internet business models. (5 marks)

Answer :

Native Internet Business Models:

Native Internet business models are business models that have been specifically designed and developed for the Internet environment from the ground up. Unlike transplanted models that adapt existing offline business concepts, native models leverage unique characteristics of the Internet to create entirely new ways of conducting business.

Characteristics of Native Internet Business Models:

• Born digital - designed specifically for online environment
• Leverage unique Internet capabilities (networking, interactivity, global reach)
• Focus on digital products or services
• Utilize network effects and viral marketing
• Often free or freemium-based revenue models

Examples of Native Internet Business Models:

1. Search Engine Model:

• Example: Google, Bing
• Revenue: Advertising, sponsored links
• Value: Information organization and retrieval
• Key Features: Algorithm-based ranking, pay-per-click advertising

2. Social Networking Model:

• Example: Facebook, LinkedIn, Twitter
• Revenue: Advertising, premium subscriptions
• Value: Social connection and communication
• Key Features: User-generated content, network effects

3. Online Marketplace Model:

• Example: eBay, Amazon Marketplace
• Revenue: Transaction fees, listing fees
• Value: Platform for buyers and sellers
• Key Features: Two-sided market, reputation systems

4. Software as a Service (SaaS) Model:

• Example: Salesforce, Dropbox, Netflix
• Revenue: Subscription fees
• Value: Cloud-based software access
• Key Features: Recurring revenue, scalability

5. Freemium Model:

• Example: Spotify, LinkedIn, Zoom
• Revenue: Premium subscriptions, advertising
• Value: Basic free service with premium features
• Key Features: Large free user base, conversion to paid

6. Platform/Ecosystem Model:

• Example: Apple App Store, Google Play
• Revenue: Revenue sharing, platform fees
• Value: Third-party developer ecosystem
• Key Features: Network effects, developer community

2. (b) What is a Digital Signature? How does it work? (5 marks)

Answer :

Digital Signature:

A digital signature is a cryptographic mechanism that provides authentication, non-repudiation, and integrity for digital documents and messages. It is the electronic equivalent of a handwritten signature, but with enhanced security features that ensure the document has not been altered and confirms the identity of the signer.

Key Features of Digital Signatures:

• Authentication: Verifies the identity of the sender
• Non-repudiation: Prevents sender from denying they sent the message
• Integrity: Ensures the message has not been tampered with
• Legal Validity: Legally binding in many jurisdictions

How Digital Signatures Work:

Step-by-Step Process:

Signing Process:

1. Document Hashing: The original document is processed through a hash function (like SHA-256) to create a unique digest
2. Encryption: The hash is encrypted using the sender's private key
3. Signature Creation: The encrypted hash becomes the digital signature
4. Attachment: The digital signature is attached to the original document
5. Transmission: The document with signature is sent to the recipient

Verification Process:

1. Signature Extraction: The recipient extracts the digital signature from the document
2. Hash Generation: The received document is hashed using the same hash function
3. Decryption: The signature is decrypted using the sender's public key
4. Comparison: The newly generated hash is compared with the decrypted hash
5. Validation: If hashes match, signature is valid; if not, it's invalid

Technologies Used:

• Public Key Infrastructure (PKI): Asymmetric key cryptography
• Hash Functions: SHA-256, SHA-512, MD5
• Encryption Algorithms: RSA, DSA, ECDSA
• Certificate Authorities: Trusted third parties for key validation

3. (a) Explain the different components in the online delivery of goods and services. Explain their role. (5 marks)

Answer :

Components in Online Delivery of Goods and Services:

1. Order Management System (OMS):

• Role: Central hub for processing and tracking orders
• Functions:
  • Order capture and validation
  • Inventory allocation and reservation
  • Order routing to fulfillment centers
  • Order status tracking and updates

2. Inventory Management System:

• Role: Manages stock levels and product availability
• Functions:
  • Real-time inventory tracking
  • Stock level monitoring and alerts
  • Automated reordering
  • Multi-location inventory coordination

3. Warehouse Management System (WMS):

• Role: Optimizes warehouse operations and fulfillment
• Functions:
  • Pick, pack, and ship operations
  • Optimal storage location management
  • Labor management and productivity tracking
  • Quality control and inspection

4. Transportation Management System (TMS):

• Role: Manages shipping and logistics operations
• Functions:
  • Carrier selection and rate optimization
  • Route planning and optimization
  • Shipment tracking and monitoring
  • Freight audit and payment

5. Customer Relationship Management (CRM):

• Role: Manages customer interactions and communications
• Functions:
  • Customer service and support
  • Order status communication
  • Issue resolution and escalation
  • Customer feedback collection

6. Payment Processing System:

• Role: Handles financial transactions securely
• Functions:
  • Payment authorization and processing
  • Fraud detection and prevention
  • Refund and chargeback management
  • Financial reporting and reconciliation

7. E-commerce Platform:

• Role: Front-end interface for customer interactions
• Functions:
  • Product catalog management
  • Shopping cart and checkout
  • User account management
  • Order tracking interface

8. Last-Mile Delivery Partners:

• Role: Final delivery to customer's location
• Functions:
  • Local delivery and distribution
  • Real-time delivery tracking
  • Customer communication and scheduling
  • Proof of delivery confirmation

3. (b) Draw and explain the architecture of an online shopping m-Commerce Portal that sells books. Make necessary assumptions. (5 marks)

Answer :

Architecture of Online Book Shopping m-Commerce Portal:

Assumptions:

• Target platform: iOS and Android mobile devices
• Book inventory: Physical books, e-books, and audiobooks
• Payment methods: Credit/debit cards, digital wallets, UPI
• Delivery: Physical delivery for books, instant download for digital content

Architecture Components Explanation:

1. Presentation Layer:

• Mobile App UI: Native iOS/Android applications with responsive design
• Web Browser Interface: Mobile-optimized web version
• Features: Touch-friendly interface, gesture navigation, offline reading capability

2. Application Layer:

• Authentication Service: User login, registration, social login integration
• Book Catalog Service: Book browsing, details, reviews, ratings
• Search & Recommendation: Book search, filters, personalized recommendations
• Shopping Cart Service: Add/remove books, wishlist management
• Order Management: Order placement, tracking, history
• Payment Gateway: Secure payment processing
• Notification Service: Push notifications, order updates

3. Business Logic Layer:

• User Management: Profile management, preferences, reading history
• Inventory Management: Stock levels, availability, pricing
• Order Processing: Order validation, fulfillment workflow
• Payment Processing: Transaction handling, refunds
• Content Delivery: E-book and audiobook distribution

4. Data Layer:

• User Database: Customer profiles, preferences, reading history
• Book Catalog Database: Book metadata, inventory, pricing
• Order Database: Order details, status, shipping information
• Payment Database: Transaction records, payment methods
• Content Storage: Digital book files, cover images

5. External Services:

• Payment Providers: PayPal, Stripe, local payment gateways
• Shipping Partners: Courier services for physical book delivery
• Push Notification Services: Firebase, Apple Push Notification
• Analytics Services: User behavior tracking, sales analytics

4. (a) What is SSL? Explain its working with the help of a diagram. (5 marks)

Answer :

SSL (Secure Sockets Layer):

SSL is a cryptographic protocol designed to provide secure communication over computer networks, most commonly the Internet. It establishes an encrypted connection between a web browser and a web server, ensuring that all data transmitted between them remains private and secure. SSL has been succeeded by TLS (Transport Layer Security), but the term SSL is still commonly used.

Key Features of SSL:

• Encryption: Protects data from eavesdropping
• Authentication: Verifies the identity of the server
• Data Integrity: Ensures data is not tampered with during transmission
• Non-repudiation: Provides proof of communication

SSL Working Process:

Detailed SSL Handshake Process:

Step 1: Client Hello

• Client sends supported SSL/TLS versions
• List of supported cipher suites
• Random number for key generation
• Session ID (if resuming previous session)

Step 2: Server Hello

• Server selects SSL/TLS version
• Chooses cipher suite from client's list
• Sends server's random number
• Assigns session ID

Step 3: Server Certificate

• Server sends its digital certificate
• Certificate contains server's public key
• Certificate is signed by trusted Certificate Authority
• May include certificate chain

Step 4: Client Key Exchange

• Client verifies server certificate
• Generates pre-master secret
• Encrypts pre-master secret with server's public key
• Sends encrypted pre-master secret to server

Step 5: Session Key Generation

• Both parties derive session keys from pre-master secret
• Uses client random, server random, and pre-master secret
• Creates symmetric encryption keys
• Generates MAC (Message Authentication Code) keys

Step 6: Secure Communication

• Both parties send "Finished" messages
• Messages are encrypted with session keys
• Verifies handshake integrity
• Begins encrypted data transmission

SSL Certificate Components:

• Subject: Entity the certificate is issued to
• Issuer: Certificate Authority that issued the certificate
• Public Key: Server's public encryption key
• Validity Period: Certificate expiration dates
• Digital Signature: CA's signature verifying authenticity

4. (b) What are EDI standards? Explain any one of the EDI standards. (5 marks)

Answer :

EDI (Electronic Data Interchange) Standards:

EDI standards are sets of rules and guidelines that define the structure, format, and syntax for electronic business documents exchanged between organizations. These standards ensure that different computer systems can communicate and process business transactions automatically, regardless of the hardware, software, or communication protocols used.

Purpose of EDI Standards:

• Standardize document formats across industries
• Enable seamless data exchange between different systems
• Reduce manual data entry and processing errors
• Improve transaction speed and efficiency
• Lower operational costs

Major EDI Standards:

• ANSI X12: American National Standards Institute (North America)
• EDIFACT: Electronic Data Interchange for Administration, Commerce and Transport (International)
• TRADACOMS: Trading Data Communications Standard (UK)
• VDA: Verband der Automobilindustrie (German automotive industry)
• HIPAA: Health Insurance Portability and Accountability Act (Healthcare)

Detailed Explanation: ANSI X12 Standard

Overview:

ANSI X12 is a widely used EDI standard in North America, developed by the American National Standards Institute. It defines the structure and content of electronic business documents for various industries including retail, healthcare, transportation, and manufacturing.

Structure of ANSI X12:

1. Interchange Level:

• ISA (Interchange Control Header): Identifies sender and receiver
• IEA (Interchange Control Trailer): Marks end of interchange
• Contains authentication and routing information

2. Functional Group Level:

• GS (Functional Group Header): Groups related transaction sets
• GE (Functional Group Trailer): Ends functional group
• Organizes transactions by type or application

3. Transaction Set Level:

• ST (Transaction Set Header): Begins specific transaction
• SE (Transaction Set Trailer): Ends transaction
• Contains actual business document data

Common ANSI X12 Transaction Sets:

• 850: Purchase Order
• 855: Purchase Order Acknowledgment
• 856: Ship Notice/Manifest (Advance Shipping Notice)
• 810: Invoice
• 820: Payment Order/Remittance Advice
• 997: Functional Acknowledgment

Example: Purchase Order (850) Structure:

ISA*00*          *00*          *ZZ*SENDER         *ZZ*RECEIVER       *220611*1200*^*00501*000000001*0*P*>~ GS*PO*SENDER*RECEIVER*20220611*1200*1*X*005010~ ST*850*0001~ BEG*00*SA*PO123456**20220611~ REF*VN*VENDOR123~ DTM*002*20220611~ N1*ST*SHIP TO NAME~ N3*123 SHIPPING STREET~ N4*CITY*STATE*12345*US~ PO1*1*100*EA*10.50*VC*SKU12345*BP*PRODUCT123~ CTT*1*100~ SE*9*0001~ GE*1*1~ IEA*1*000000001~

Key Benefits of ANSI X12:

• Standardization: Consistent format across trading partners
• Automation: Reduces manual processing
• Accuracy: Minimizes data entry errors
• Speed: Faster transaction processing
• Cost Reduction: Lower administrative costs
• Integration: Seamless ERP system integration

5. (a) Explain the two categories into which search engines are classified. (5 marks)

Answer :

Classification of Search Engines:

Search engines are primarily classified into two main categories based on how they collect, organize, and present information to users. These categories represent different approaches to information retrieval and indexing on the World Wide Web.

1. Crawler-Based Search Engines (Algorithmic Search Engines)

Definition:

Crawler-based search engines use automated software programs called "crawlers," "spiders," or "bots" to systematically browse the web, discover content, and build comprehensive databases of web pages.

Working Mechanism:

• Web Crawling: Automated bots follow links from page to page
• Content Indexing: Text content, images, and metadata are analyzed and stored
• Algorithm Ranking: Pages are ranked using complex algorithms
• Automatic Updates: Content is continuously recrawled and updated

Key Features:

• Massive Coverage: Can index billions of web pages
• Real-time Updates: Constantly updated content
• Ranking Algorithms: Sophisticated relevance ranking
• Personalization: Results tailored to user preferences
• Advanced Search: Complex query capabilities

Examples:

• Google: Uses PageRank and hundreds of other ranking factors
• Bing: Microsoft's search engine with similar crawling technology
• Yandex: Popular in Russia with advanced semantic search
• Baidu: Leading search engine in China

Advantages:

• Comprehensive coverage of the web
• Fast and efficient searching
• Continuous content updates
• Advanced ranking and relevance
• Handles complex queries effectively

Disadvantages:

• May include irrelevant or low-quality content
• Potential for spam and manipulation
• Limited human editorial oversight
• May miss newly created content initially

2. Human-Powered Search Engines (Directory-Based Search Engines)

Definition:

Human-powered search engines rely on human editors to manually review, categorize, and organize websites into hierarchical directories and categories. Content is curated and quality-controlled by human reviewers.

Working Mechanism:

• Manual Submission: Website owners submit their sites for review
• Human Review: Editors manually evaluate content quality and relevance
• Categorization: Approved sites are placed in appropriate categories
• Description Writing: Human-written descriptions and summaries

Key Features:

• Quality Control: Human verification ensures content quality
• Organized Structure: Hierarchical category organization
• Editorial Descriptions: Human-written site descriptions
• Curated Content: Selective inclusion of high-quality sites
• Topic-Focused: Often specialized in specific subjects

Examples:

• DMOZ (Open Directory Project): Once the largest human-edited directory
• Yahoo Directory: Early web directory (now discontinued)
• Best of the Web: Curated business directory
• JoeAnt: General web directory
• Business.com: Business-focused directory

Advantages:

• High-quality, relevant results
• Human editorial oversight
• Well-organized category structure
• Reduced spam and irrelevant content
• Useful for browsing by topic

Disadvantages:

• Limited coverage due to manual process
• Slow to update and add new content
• Resource-intensive and expensive to maintain
• May miss emerging topics and trends
• Potential for human bias in selection

Modern Hybrid Approaches:

Today's search engines often combine both approaches, using automated crawling for comprehensive coverage while incorporating human quality signals and editorial guidelines to improve result quality.

5. (b) What is Cyber Crime? What are the different categories of Cyber Crimes? (5 marks)

Answer :

Cyber Crime:

Cyber crime refers to any criminal activity that involves computers, networks, or digital devices as either the target or the tool used to commit the offense. These crimes are conducted through the Internet or other digital means and can cause significant financial, personal, or societal harm. Cyber crimes can target individuals, businesses, governments, or critical infrastructure.

Characteristics of Cyber Crime:

• Involves digital technology as primary tool or target
• Often transcends geographical boundaries
• Can be committed remotely and anonymously
• May involve sophisticated technical knowledge
• Can cause widespread damage quickly

Categories of Cyber Crimes:

1. Crimes Against Individuals:

Identity Theft and Fraud:

• Credit Card Fraud: Unauthorized use of credit/debit card information
• Identity Theft: Stealing personal information for fraudulent purposes
• Online Banking Fraud: Unauthorized access to bank accounts
• Phishing: Deceptive emails/websites to steal credentials

Harassment and Stalking:

• Cyberbullying: Online harassment and intimidation
• Cyberstalking: Persistent online pursuit and harassment
• Revenge Porn: Non-consensual sharing of intimate images
• Online Threats: Digital threats of violence or harm

2. Crimes Against Organizations:

Data Breaches and Theft:

• Corporate Espionage: Stealing trade secrets and confidential information
• Data Breaches: Unauthorized access to organizational databases
• Intellectual Property Theft: Stealing copyrighted materials and patents
• Business Email Compromise: Fraudulent business transactions

System Attacks:

• Malware Attacks: Viruses, trojans, ransomware deployment
• DDoS Attacks: Distributed Denial of Service attacks
• SQL Injection: Database manipulation attacks
• Advanced Persistent Threats (APT): Long-term network infiltration

3. Crimes Against Government and Society:

Cyber Terrorism:

• Infrastructure Attacks: Targeting critical national infrastructure
• State-Sponsored Attacks: Nation-state cyber warfare
• Election Interference: Manipulation of democratic processes
• Propaganda and Misinformation: Spreading false information

Cyber Espionage:

• Government Data Theft: Stealing classified information
• Military Secrets: Accessing defense-related information
• Economic Espionage: Stealing economic and trade information
• Political Intelligence: Gathering political information illegally

4. Financial Crimes:

• Online Money Laundering: Cleaning illegal money through digital means
• Cryptocurrency Fraud: Scams involving digital currencies
• Investment Fraud: Fraudulent investment schemes online
• ATM Skimming: Stealing card data from ATM machines

5. Content-Related Crimes:

• Child Exploitation: Distribution of illegal content involving minors
• Copyright Infringement: Illegal distribution of copyrighted material
• Hate Speech: Promoting hatred against specific groups
• Illegal Content Distribution: Sharing prohibited materials

6. Network and System Crimes:

• Unauthorized Access: Breaking into computer systems illegally
• Data Destruction: Deliberately destroying digital information
• System Sabotage: Disrupting computer operations
• Network Intrusion: Illegal entry into computer networks

Impact of Cyber Crimes:

• Financial Losses: Billions of dollars in economic damage annually
• Privacy Violations: Compromise of personal and sensitive information
• Business Disruption: Operational interruptions and reputation damage
• National Security: Threats to critical infrastructure and defense
• Social Impact: Psychological harm to victims and society