E-Commerce, M-Commerce & Emerging Technologies – Nov 23

C HAPTER 4

E-COMMERCE, M-COMMERCE & EMERGING TECHNOLOGIES

1. E-C O M M E R C E

▪ Refers to doing Business (Buying, Selling & Other related functions like inventory mgt.) electronically.
▪ Means use of Technology (Internet, computer, Mobile, Apps, website etc.) to enhance processing of
commercial transactions between company, customer & business partners like seller, logistics etc.
▪ Involves automation of variety of transactions such as B2B, B2C, C2C, C2B etc. through Reliable &
Secure Technology.

2. D I F F E R E N C E B E T W E E N T R A D I T I O N A L C O M M E R C E & E-C O M M E R C E

Basis Traditional Commerce E- Commerce

Transaction Processing Manual Electronically
Customer Interaction Face to face Screen to face
Business scope Limited to particular area Worldwide reach
Availability for business Limited Time 24x7x 365
Nature of purchase Goods can be inspected physically Goods cannot be inspected
before purchase physically before purchase
Information Exchange No uniform platform Provides uniform platform
Fraud Relatively less due to personal More Risk due to Lack of physical
interaction b/w buyer and seller presence & unclear legal issues
Resource Focus Supply side Demand side

Mnemonic & Relevant Question No. of Divyastra

3. B E N E F I T S O F E-C O M M E R C E

Individual User Seller Government

a) Time Saving - Some products a) Reduction of Cost - of overhead (salary), a) Instrument to
such as e-books, recharge of Rent, marketing and advertisements [E-mail fight corruptions
mobile can be delivered online /Digital marketing] etc. - as all
through internet. b) Recurring Payments made easy. transaction are
b) Various Options- by diff. recorded, No tax
c) Instant Transaction - which are processed in evasion.
sellers which are easy to real time, so no. of sales made increases.
compare. b) Reduction in use
d) Increased Customer Base - since no. of of ecologically

cakishankumar.com P a g e | 4.1
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

Individual User Seller Government

c) Convenience – w.r.t. people getting online is increasing. damaging
Searching, placing Order and e) Creation of new markets: Done through the materials -
Payment. ability to reach potential customers easily through electronic
d) Anytime Access - and with low cost. coordination of
[24X7X365] activities and the
f) Easier Entry into New Market - as reach of movement of
e) Easy to Find Reviews - User e-commerce is worldwide. information
can give feedback & ratings g) Efficiency Improvement - Reduction in rather than
which helps buyer to make physical objects.
better decision. ➢ Time required to complete transactions;
f) Coupon and Deals ➢ Errors in billing, invoicing & data entry
➢ Inventory holding cost due to Just in Time

Mnemonic & Relevant Question No.

4. D I S A D V A N T A G E S O F E-C O M M E R C E

a) Internet Connection Internet connectivity is a pre-requisite to perform online transactions. It may not
be available in rural or remote areas.
b) High start-up costs Various components of costs involved with e- commerce are due to following
▪ Connection: Connection costs to Internet.
▪ Hardware/software: Includes cost of sophisticated computers, routers etc.
▪ Set up: Includes employee work hours involved in setting up systems.
▪ Maintenance: Includes costs involved in training of employees & maintenance
of web-pages.
c) Legal issues The legal environment in which e-commerce is conducted is full of unclear &
conflicting laws.
d) Security Concerns There is risk of security and reliability of network and internet as well as fear of
safety and security to the personal information due to the increased spywares
and malwares
e) Cultural Some customers are still somewhat fearful of sending their credit card numbers
impediments over the Internet. Also, many customers are simply resistant to change.
f) Some businesses Items such as perishable foods and high-cost items such as jewellery and
may never lend antiques may be impossible to adequately inspect from a remote location.
themselves to e-
commerce

Mnemonic & Relevant Question No.

5. E-M A R K E T I N G

▪ Refers to process of marketing a product or service using the Internet.

▪ The internet changes the relationship between buyers and sellers because market information is
available to all parties involved in the transaction.
▪ Some of the relevant terms related to e-marketing are as follows:
1. Portals It is a website that serves as a gateway on the internet to a specific field of interest or

cakishankumar.com P a g e | 4.2
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23
an industry.
It is a channel through which websites are offered as content.
Firms control the content or portal and earn revenue by charging customers for
subscription or advertising.
Website + login + motive is to earn money.
Eg – www.mca.gov.in, Google, Netflix, Tax sutra, Taxmann.com
2. E-shop/ e- It is a virtual store front that sells products and services online where customers can
Tailor shop at any hour of the day or night without leaving home.
It is convenient way of effecting direct sale to customers.
No intermediaries are involved, hence cost & time delay is reduced.
Eg- www.vanheusenindia.com
3. E- malls It is collection of e-shops usually grouped under a single Internet address.
It is e-retailing model of a shopping mall.
It is Conglomeration of different e-shops situated in an e-commerce location.
They are mainly of following types:
a) General stores/malls: These are online stores that have a variety of items for sale
and do not specialize in selling any one item and are thus called General stores. It
includes store like amazon.com which is primarily an e-mall that provides platform
to vendors sell and users to purchase various products ranging from books, music,
movies, housewares, electronics, toys, clothes etc.
b) Specialized stores/malls: The specialized stores would sell only specialized items.
For example - www.99acres.com is a website that specializes in buying and selling
property and housing on an online platform.
4. E- Auction It provides channel of communication (auction websites) though which bidding process
for products & services can take place between completing buyers.
Eg – www.bidderboy.com
5. Buyer They bring together large no. of buyers so that they can enjoy savings which are
Aggregator generally enjoyed by large volume buyers.
Firms collects info about Goods/Services, make services providers their partners & sell
under its own brand. Eg- www.zomato.com, Ola, Uber
6. Virtual Community of customers who share common Interest & use internet to communicate
Community with each other.
It helps participants as they get greater benefits like solving queries, sharing ideas etc.,
without additional cost. E.g.- Microsoft community, Facebook Community
7. E- distribution e-distribution is a concept where a Co. supplies products & services directly to individual
businesses.
It helps distributors in achieving efficiency by managing large volume of customers,
automating orders, communicating with partners and providing value added services like
order tracking.
An example of a firm specializing in e-distribution is www.wipro.com that uses internet
to provide fully integrated e-business enabled solutions that help to unify the
information flows across all the major distribution processes.
8. E-Procurement Refers to Management of all procurement activities though electronic means.
Many companies now prefer to procure the required goods and services through a
website devoted to procurement.

cakishankumar.com P a g e | 4.3
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23
E- procurement infomediaries provide upto date & real time information w.r.t. supply of
material to business partners.
Leads to efficiency in accessing info & saving of time & cost. E.g. www.e-procure.gov.in

Relevant Question No.

6. E-C O M M E R C E B U S I N E S S M O D E L S

▪ B.M. refers to the mechanism by which a business intends to generate revenue and profits and includes
products, services and information flows, the sources of revenues, and benefits for suppliers and
customers.
▪ A business model enables a firm to
➢ analyze its environment more effectively and
➢ exploit the potential of its markets;
➢ better understand its customers; and
➢ raise entry barriers for rivals.
▪ An e-business model is the adaptation of an organization’s business model to internet economy.
▪ E-business models utilize the benefits of electronic communications to achieve the value additions.
▪ The e-business models relating to e-business markets can be summarized as given below:

Government
Business to Consumer to to Business to
Business to Consumers Consumer to
Business Consumer Consumer Government
[B2C] Business [C2B]
[B2B] [C2C] [B2G]
[G2C]
Refers to online Refers to Consumers sell Consumers create Allows Variant of
retailers who sell commerce directly to value & businesses consumers to B2B model.
products & services b/w other consume that provide Govt.
through internet. company, its consumers value. feedback & accredits
Supports activities suppliers or through online In this model, a ask info. like selected
within consumer chain. other classified reverse auction land search, websites.
participants. Advertisement, allows consumers license
Focuses on sell side auctions or confirmation, These
activities. Supports to set and websites act
supply chain personal demand their own vehicle
Three types selling. ownership as a medium
of Org. price and of
a) Direct sellers - E.g. E.g. Matches companies bid to etc. from exchanging
Revenue provide Govt.
vanheusenindia.com www.Indiam authorities. information
art.com stream of product & service.
b) Online Businesses
buyers with Government
Intermediary- E.g. sellers & vice - E.g.- provides the use these
Amazon.com versa. information websites to
Job portals like
c) Community built TimesJobs.com / services ➢ File
E.g. OLX.in
around shared asked for. Reports
interest like Comparison of
interest rates of E.g. ➢ Pay taxes
cooking,
photography etc. loans by various e-Seva ➢ Sell Goods
E.g. banks to customers (Andhra & services
www.cookingmatters like www.paisa Pradesh) to Govt
.com Bazar.com

cakishankumar.com P a g e | 4.4
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

e-shops, e malls, e-auctions, e-auctions e-distribution Portal Portal

e-auctions, Buyer e-
aggregators procurement,
e-distribution

Mnemonic & Relevant Question No.

7. C O M P O N E N T S O F E-C O M M E R C E

Technology Internet/ Payment

User E-Commerce Vendors Web Portal
Infrastructure Network Gateway
Any Refers to Org/ Entity E-commerce is It is Key to Provides It is
individual / providing the G/s user technology driven. success of interface/ integrated
organization asked for. E.g. Flipkart. To be successful, web e- comm. front end with E-
or anybody They need to ensure site should be: Transaction through Commerce
using e- following for effective & & Critical which user website.
commerce a) Scalable with Enabler. interacts
efficient Transactions: minimal effort to It is a system
platforms. with e-
a) E-commerce catalogues handle peak traffic Faster commerce
of computer
E-comm and product display - internet processes
vendors b) Easy to use and results in vendor. that
all info should be convenient
need to displayed properly. better e- Can be authorizes,
ensure that c) Implementing commerce. accessed verifies, and
user’s b) Suppliers & SCM - Responsive Design through accepts or
loyalty is Should have enough to make website laptop, declines
built right suppliers who are accessible & usable desktop, payment on
through financially & operation- on every device. mobile & behalf of
timely ally stable. hand-held merchant
delivery, Following tech. enable device. through secure
Should provide real- e-commerce:
easy time stock inventory & Simplicity Internet
redressal, short delivery time. a) Computer server & connections.
and clarity
customer- DB - Backbone of e- of content on Last & most
c) W/H operations - Where
friendly commerce. web portal is crucial part of
return Goods are stored &
packed as per pre- E-Comm Vendors directly e- comm
policy, and invest huge amount linked to transactions.
complete determined standard.
in such infra. customer Assures seller
customer d) Shipping & Returns -
b) Mobile App - Smaller experience of of receipt of
satisfaction. Supplementary & buying a
complementary to w/h version of computer payment.
s/w programmed to product
operation. Fast return is online. Various modes
USP of vendors. run on mobile/ tablet. are
e) Showroom and offline Expensive & runs on 1
▪ Debit card
purchase - Many type of OS.
vendors have opened c) Digital Library - ▪ Credit Card
outlets for customer Special library ▪ UPI
experience of their focussed on
products. collection of digital ▪ COD
f) Marketing & loyalty objects (text, audio,
program - To establish video) stored in e-
long-term relationship media format.
with customer. Type of info. retrieval
g) Privacy policy - Explains system.
usage of customer’s d) Data Interchange -

cakishankumar.com P a g e | 4.5
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

Technology Internet/ Payment

User E-Commerce Vendors Web Portal
Infrastructure Network Gateway
data in as per IT Act Electronic
2000. communication of
h) Security policy - So that data between
data is safe through different parties.
tech like secure socket There are defined
layer (SSL). standards to ensure
seamless
communication.

Mnemonic & Relevant Question No.

8. A R C H I T E C T U R E O F N E T W O R K E D S Y S T E M

Architecture refers to style of designing/ method of construction.

In e-Business, it denotes the way network architectures are built. E-Commerce runs through network
connected system which can be of two types

Two Tier Architecture Three Tier Architecture

In this, client (user) sends request to Well-established client-server architecture where the business
Server and the Server responds to the logic, computer data storage and user interface are developed
request by fetching the data from it. and maintained as independent modules on separate
platforms.

Presentation Tier/
Client Tier/ Client Database Tier
App Tier Presentation Application/ Logic/ Database
Tier /Client Tier Business/Middle Tier Tier
Refers to Data like Product
interface that data, Price data, Top level & Controls App functionality Same as
allows user to customer data & displays info. by performing detailed Two tier
interact with e- other data is kept related to goods processing.
commerce here. and services on Part of the program that
vendor. website. encodes the real-world
All information is
User can login to stored & retrieved For login & business rules that
e-commerce from this tier. checking the determine how data can
through this tier products, App tier be created, displayed,
User has no is used. stored and changed.
& all information access to data at
is displayed to this level but can All e-commerce & M-commerce applications follow three-tier
him. access it through network architecture.
Client Tier.

8.1. ADVANTAGES & LIMITATIONS OF TWO- TIER ARCHITECTURE

Advantages Disadvantages / Limitations

cakishankumar.com P a g e | 4.6
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

a) Easy to setup & maintain due to simple a) Performance declines if number of users increase.
structure. b) Restricted flexibility as any change in version of
b) System performance is higher since business s/w needs to be installed in each user’s device.
logic & database are physically close. c) Lesser choice of DBMS.
c) Processing is shared b/w client & database.
Hence more users can interact with system.

8.2. ADVANTAGES & LIMITATIONS OF THREE TIER ARCHITECTURE

Advantages Disadvantages / Limitations

a) Change Mgt. (updating version of s/w) - Any a) Increased need of network traffic management,
component change can be done on App server load balancing & fault tolerance.
rather than user’s device in easy & faster way. b) Current tools are relatively immature & complex.
b) Clear Separation of user interface control & data c) Maintenance tools are inadequate for
presentation from application logic - results in maintaining server.
quicker development of software.
c) Dynamic load balancing - if some bottleneck in
performance occurs, the server process can be
shifted to another server in real time.
d) Other Benefits - Higher performance, Flexibility
in deployment of Architecture due to modular
design, Scalability, Improved security & data
integrity.

Mnemonic & Relevant Question No.

9. M- C O M M E R C E

▪ Refers to Buying & Selling of Goods & services and related activities though wireless hand-held devices
like mobile phones and Personal Digital Assistants (PDAs) like tablet etc.
▪ M-commerce enables users to access the Internet without needing to find a place to plug in.
▪ Growth in m-Commerce has been through App. It can be downloaded by user or pre-installed.

E-Commerce Architecture Vide Internet & Mobile Apps

Layer/ Tier E-commerce vide Internet E-Commerce vide Mobile Apps
Client/ Presentation Web server, web browser & Internet Mobile web browser, Mobile App, Internet
Tier (user interface) Helps the e-commerce customer to Helps the e-commerce customer to
connect to e-commerce merchant. connect to e-commerce merchant.
Application Tier App server & Back–end server. Same
(includes seller, logistics partner,
Payment gateway)
It allows customer to check the
products available on merchant’s
website.
Database Tier DB server i.e., Info store house where Same
all data is stored.

cakishankumar.com P a g e | 4.7
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

Mnemonic & Relevant Question No.

10. W O R K F L O W O F E-C O M M E R C E

1. Customers Login Customer log-in on e-commerce website or mobile App.

2. Product / Service Customer selects products / services from available options.
3. Customer Places Order is placed for selected product / service by customer.
Order
4. Payment Customer selects the payment method. In case payment methods is other than
Gateway Cash on Delivery (COD), the merchant gets the update from payment gateway
about payment realization from customer.
5. Dispatch and This process may be executed at two different ends.
Shipping Process First if product / service inventory is managed by e-commerce vendor, then
dispatch shall be initiated at vendor’s warehouse.
Second, many e-commerce merchants allow third party vendors to sale through
merchant websites.
6. Delivery All merchants have provided their delivery staff with hand held devices, where the
Tracking product / service delivery to customers is immediately updated.
7. COD Tracking In case products are sold on COD payment mode, merchants need to have
additional check on matching delivery with payments.
Note: Numerous services are of the nature which does not have a separate delivery need, for example
booking a train ticket through www.irctc.co.in. In this case, there is no separate delivery of service.

Mnemonic & Relevant Question No.

cakishankumar.com P a g e | 4.8
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

11. R I S K S & C O N T R O L S I N E- C O M M E R C E

11.1. Risks i.e Possibility of Loss in case of e-commerce are higher compared to general internet activities.

Security of credit Quality Issue →

Privacy & Security of card issue → Risk of Actual product may
sensitive personal data differ from product
cloning Dr/Cr card
ordered

Problem of
Delay in delivery of Anonymity → Needs
goods & hidden cost Needs internet & no to identify &
(delivery/ processing personal touch authenticate user as
cost) well as supplier

Repudiation of contract
Denial of service → → seller may repudiate Attack from Hacker →
Due to unavailability order after accepting it. E-commerce website
of system due to customer can also refuse may be attacked by
virus, bomb etc. to accept delivery hackers

Mnemonic & Relevant Question No.

11.2. C O N T R O L S I N E -B U S I N E S S E N V I R O N M E N T → N E C E S S A R Y F O R E A C H P A R T I C I P A N T I N T H E C H A I N

1. Users ▪ To ensure that genuine users are on e- commerce website. This prevents attack on
website from Hackers.
2. Sellers/ ▪ Should be financially & operationally stable. Control is needed for
Merchants
➢ Product catalogues
➢ Price catalogues
➢ Discount and promotional schemes
➢ Shipping & return
➢ Accounting for cash received through Cash on Delivery mode of sales.
3. Government ▪ Two major concerns - Tax accounting of Goods & services sold and only legal Goods
& services are sold.
4. Network Service ▪ To ensure availability & security of network. Any downtime can be disastrous.
Provider
5. Technology ▪ Includes all services other network service. E.g. cloud computing, App Backend etc.
Service Provider
▪ To ensure availability & security of technology.
6. Logistics ▪ Responsible for timely delivery of product as ordered.
service provider
▪ Success or failure of any e-commerce / m-commerce venture finally lies here.
7. Payment ▪ To ensure effective & efficient processing of payment.
Gateway

11.3. CONTROLS FOR MITIGATING RISK

cakishankumar.com P a g e | 4.9
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

Ensure
Communication of
Educate participants compliance Protect your e-commerce website from
organizational policy
about nature of risk with Industry Intrusion
to Customers
Body standard
Policy may include a) Privacy policy RBI releases a) Hackers - Use security software
a) Frequency and i.e., How data will these package to protect website from
nature of be used standards from hackers.
educational b) Information time to time b) Virus- Scan website daily for viruses.
programmes. Security policy which must be
complied. c) Password - Ensure employees use
b) Participants for c) Shipping & Billing strong password & change it
such programme policy periodically.
Example d) Refund policy Also access of ex-employees must be
“Dos and Don’ts” This avoids customer terminated.
for online payments dissatisfaction and d) Regular s/w update - Website should
advertised by disputes have newest version of security s/w.
Banks. e) Sensitive data - Encryption of
financial & other confidential data.

Mnemonic & Relevant Question No.

12. G U I D E L I N E S & L A W S G O V E R N I N G E- C O M M E R C E

12.1. G U I D E L I N E S G O V E R N I N G E- C O M M E R C E (D E C I D E D B Y E- C O M M E R C E )

All e-commerce vendors need to create clear policy guidelines for the following & communicate it to users.
Product Guarantee/
Billing Shipping Delivery Payment Return
Warranty
Format Shipping Mode of delivery? Mode Which goods can Proper display
of Bill Date & - Courier be returned? guarantee/warranty
- Cash on
Details in Time, - Hand delivery delivery Within how many on website
Bill Expected - online days? Also send
When will goods
Applicable date of be delivered? payment Process of Guarantee/
GST dispatch Warranty document
& Specific payment verifying along with product
- Time & date
delivery mode for specific authenticity to customers.
Where delivery is product must be Duration after
to be made? highlighted. which money will
- Home be refunded.
- Office

12.2. C O M M E R C I A L L A W S G O V E R N I N G E-C O M M E R C E

All e-commerce transactions are essentially commercial transactions. Hence following laws are applicable:
1. Income Tax Act 1961 ▪ Act to levy & collect Income Tax on Income.
▪ concerned with deciding place of origin of Transaction for tax purpose.
2. GST Act, 2017 ▪ Covers all aspect of E- commerce
▪ Each supplier is required to upload details of outward supply on common

cakishankumar.com P a g e | 4.10
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23
portal.
3. Companies Act, 2013 ▪ Regulate companies. All major e-commerce organizations are companies.
4. Factories Act, 1948 ▪ Regulates working condition of workers. Extend to place of storage as well
as transportation.
5. Customs Act, 1962 ▪ Deals in Import/ Export of goods. India is signatory to GATT of WTO &
can’t levy custom duty that are not WTO compliant.
6. Consumer Protection ▪ Act to safeguard interest of consumers. It is source of most of litigation.
Act, 1986
7. Foreign Trade ▪ Provides for development and regulation of foreign trade by facilitating
(Development and imports into, augmenting exports from, India and for related matters.
Regulation) Act, 1992:
8. Foreign Exchange ▪ Regulates FDI & flow of foreign exchange in India.
Management Act, ▪ FDI upto 100% allowed in e- commerce dealing in B2B e- commerce.
1999 ▪ Foreign investment in B2C e- commerce activities has been opened in a
calibrated manner and an entity is permitted to undertake retail trading
through e-commerce under the following circumstances:
a) A manufacturer is permitted to sell its products manufactured in India
through e-commerce retail.
b) A single brand retail trading entity operating through brick-and-
mortar stores is permitted to undertake retail trading through e-
commerce.
c) An Indian manufacturer is permitted to sell its own single brand
products through e-commerce retail.
Indian manufacturer would be the investee company, which is the
owner of the Indian brand, and which manufactures in India, in terms
of value, at least 70% of its products in house, and sources, at most
30% from Indian manufacturers.
9. Competition Act, ▪ Regulates practices that have appreciable adverse effect on competition
2002 through competition commission.
▪ checks predatory pricing by E-Commerce vendors.
10. Indian Contact Act ▪ Defines constituents of valid contract.

Mnemonic & Relevant Question No.

12.3. S P E C I A L L A W S G O V E R N I N G E- C O M M E R C E

Information Technology Act, 2000 RBI Act, 1934

▪ Govern all internet activities in India including all RBI frames guidelines to be followed by E-
online transaction in India. Commerce & M- Commerce.
▪ Provides legal sanctity to online transactions, E.g. Conversion of Dr/Cr card into chip-based card.
online contracts & provides for penalty for non- OTP/PIN must for online payments or
compliance. payments at point of sales (PoS).
▪ Refer Chapter 1 & 5 for detailed discussion. The compliance with capital adequacy norms for
payments wallet like SBI BUDDY/PAYTM etc.

cakishankumar.com P a g e | 4.11
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

13. F O R C E S B E H I N D E-C O M M E R C E R E V O L U T I O N / T R E N D S I N E-C O M M E R C E

E-commerce business is expected to grow at a rapid pace. Businesses which have the vision to anticipate
change and catch the trend before the competitors do would definitely be more successful.
E- marketers need to develop not only their product quality but also user experience to retain customers.
1. Proliferation of User is moving from desktop to mobile computing.
Mobile Device 55% online traffic is generated on mobile & its increasing.
Creation of mobile apps for e-commerce website & mobile marketing is latest trend.
Latest trend is to use video for content marketing to attract customers.
Shoppable videos instead of images enables customer to shop directly from videos.
2. Convergence of Mobile internet is also about a very different user experience and is characterized by
Mobile goal-oriented activities like reserving movie tickets or looking for directions.
Telecommunicat Transition from 3G to 5G and faster data rate along with many new applications and
ion Network and services makes the success of e-commerce possible.
the Internet:
3. Social Network Social media is integral part of a customer’s online habit.
Latest trend is to include e-commerce in social networks, such as Facebook, Twitter,
YouTube, etc. This allows the consumer to buy the product without even leaving the
social media platform.
4. Biometrics Since e- commerce involves serious security threats such as hacking, spamming,
online fraud, theft of confidential data etc.,
Biometric verification is a means to solve security issues using physical
characteristics of users such as fingerprint, face or voice.
5. Artificial AI in e-commerce offers personalized and interactive buying experience.
Intelligence Use of AI like fully automated chat bot is another latest trend.
Chatbot is first point of contact & answers all questions of consumers.
Also known as messenger bots.
Live chat users tend to spend more & buyer conversion rate is higher.
P.A. helps in analysing customer’s behaviour such as if customer does not return
within 30days, he is lost.
It helps to
a) predict customers buying habits as per their taste & preference, both Q&Q &
6. Predictive
Analysis b) segmenting customers in different categories & improve conversions by offering
▪ Right customers
▪ the right product
▪ in the right way
▪ at the Right time
7. Support of IT Various provisions of IT Act, 2000 and laws now govern E-commerce and empower the
governing Laws e-businesses and lower the chances of any upsetting legal conflicts or lost business.

Mnemonic & Relevant Question No.

cakishankumar.com P a g e | 4.12
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

14. D I G I T A L P A Y M E N T

▪ It is way of payment which is made through digital modes.

▪ Also known as electronic payment as No cash is involved & Transaction is completed online.
▪ New digital payment platforms such as UPI and IMPS are becoming increasingly popular and have
contributed to rapid growth of banks as well as E-Commerce.

Advantages Disadvantages / Drawbacks / Limitations

a) Easy & Convenient a) Overspending
b) Accessible from anywhere b) Risk of data theft server of digital payment service provider
c) Less Risk if used wisely can be hacked.

d) Written record of transaction c) Difficult for non-technical person

e) Discount from taxes d) Disputed transactions: In case of misuse of electric money by

someone else, it is very difficult to receive a refund.
f) Competitive advantage to business
e) The necessity of internet access
g) Environment Friendly
f) Increased business costs: additional costs in procuring,
installing and maintaining sophisticated payment-security
technologies.

Mnemonic & Relevant Question No.

14.1. T Y P E S D I G I T A L P A Y M E N T

Traditional Methods New Methods

14.1.1. TRADITIONAL METHODS

Cards
Internet Banking
Debit Card Credit Card Smart Card
Small plastic card Small plastic card Prepaid card similar to credit card Customers login to
containing unique no. issued by a bank/ and debit card in appearance, but his/ her bank
linked with bank issuer, allowing the has a small microprocessor chip in account and
account number holder to purchase it to store customer’s personal info. makes payments.
Issued by a bank & goods or services on such as financial facts, encryption All public sector
allows the holder to credit. keys, account information & so on. banks & large
make payment Buyer’s cash flow isa) These are not linked to any bank private sector
directly from his not instantly account & user is not mandated to banks allow this
Bank account. impacted as user have a bank account. facility to their
Buyer’s cash is makes payment to b) It is used to store money which is customers.
instantly affected i.e. card issuer at end of reduced as per usage.
as soon as payment billing cycle.
c) E.g. Mondex and Visa Cash cards.
is approved, buyers
account is debited.

14.1.2. NEW METHODS

cakishankumar.com P a g e | 4.13
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

UPI IMPS Mobile Apps Mobile Wallet AEPS USSD

Unified payment Immediate BHIM/Bharat Mobile wallet or Aadhar Unstructured
interface. Payment Interface for e-wallet is Enabled Supplementary
It is payment mode System money digital version Payment Service Data
to make instant Facilitates Developed by NPCI of a physical or System is a Banking or *99#
fund transfer from Instant inter- (National real-life wallet. Aadhaar banking is
sender’s bank bank electronic Payment Corp. of Users can keep based digitalmobile Banking
account to the fund transfer India) his/her money payment based on Digital
receiver’s bank in E-wallet & mode. payment that
through Mobile, Based on UPI &
account through ATM & Net built on IMPS use it when AEPS allows works on basic
the mobile App. banking. infra. needed bank to bank phone through
Steps It stores bank transactions SMS.
Allows user to i.e. money No need of
account or
▪ User downloads send or receive will be smartphone or
money to/ from Dr/Cr card info
UPI APP such deducted Internet
as PhonePe, other UPI address on mobile from sender’s
by device. Can be used for
Google Pay, account and financial as well
BHIM a) scanning QR Used to make credited to
payment to as non –
code; or the payee’s
▪ Create VPA/ UPI merchants financial
account operations like
ID b) using account listed with
directly. checking bank
▪ Register for number with mobile wallet
Indian service provider. Customers balance,
Mobile Banking need to link generating MPIN
Financial
▪ Link Bank Systems Code E.g. PAYTM Aadhar with etc.
account with (IFSC) or Mobikwik Bank account.
UPI ID & Can be used
c) MMID (Mobile Freecharge
Transfer Fund. for financial
Money Buddy
UPI can be used 24 Identifier) as well as non
hours and even on Code for users - financial
public holidays. who don’t have operations
a UPI-based like checking
bank account. of balance.

Crypto Currency ▪ It is a digital currency (no physical form) produced by public network rather
than any Government or bank. It is completely decentralized i.e, no controlling
authority.
▪ It is a medium of exchange. Strong cryptography is used to ensure that payments
are sent & received safely.
▪ Records of individual coin ownership is stored in computerized database using
strong cryptography.
▪ Strong cryptography makes it nearly impossible to counterfeit & doubled spend
▪ E.g. – Bitcoin, Litecoin, Ethereum
▪ Advantages: Less transaction processing, fast transfer b/w sender & receiver, no
risk of hacking or counterfeit currency.
e-Rupi ▪ e-Rupi is new mode of cashless and contactless digital payment launched by
Government of India based on UPI systems to ensure seamless transfer of
benefits to the citizens in a “leak-proof” manner.
▪ It is an e-voucher, which will be delivered to beneficiaries in the form of a QR
code and SMS-string-based voucher.

cakishankumar.com P a g e | 4.14
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

▪ These vouchers are person-and purpose-specific, meaning if they are released by

the government for the purpose of vaccination, for instance, then they can be
redeemed only for that.
▪ This contactless e-RUPI is easy, safe and secure as it keeps the details of the
beneficiaries completely confidential.
▪ The entire transaction process through this voucher is relatively faster and at the
same time reliable, as the required amount is already stored in the voucher.
▪ Any government agency and corporation can generate e-RUPI vouchers via their
partner banks.

Mnemonic & Relevant Question No.

P ART II - E MERGING T ECHNOLOGIES

15. V I R T U A L I S A T I O N

▪ Refers to creation of virtual version of a device or resource such as server, network or storage device etc.
▪ It provides a layer of abstraction between hardware and software working on them.
▪ Core Concept – Partitioning which divides one physical hardware into multiple logical server/ virtual
machines and each logical server can run an OS independently.
▪ Example - Partitioning of a hard drive is considered virtualization because one drive is partitioned in a
way to create two separate hard drives.
▪ Helps in cutting IT expenses, enhancing security, and increasing operational efficiency.

15.1. APPLICATION AREAS OF VIRTUALISATION

Server Testing and

Disaster Recovery Portable App Portable workspace
consolidation training
It consolidates Can be used as hot Useful for kernel It enables to have It helps to create
many servers into standby and in development of OS portable Apps portable
fewer servers. case any virtual & OS courses for where Apps can be workspaces/ OS
Known as machine is down, training and executed from that can be carried
physical to virtual its work can be testing. removable device on devices like
transformation. handled by other (PD/HD) directly memory stick, USB,
virtual machines, without installing iPad.
Each physical thus helping in it into system
server is known disaster recovery. main disk.
as virtual
machine host &
virtual machines
appear as real.

Mnemonic & Relevant Question No.

15.2. TYPES OF VIRTUALISATION

cakishankumar.com P a g e | 4.15
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

Hardware Virtualization Network Virtualization Storage Virtualization

▪ Known as platform ▪ It is a method of combining ▪ Refers to pooling of data
virtualisation available resources by splitting form multiple storage devices
bandwidth/network into into what appears to be a
▪ Involves creation of virtual
multiple channels. single device that is managed
machines that acts like real
centrally.
computer with OS. ▪ Each channel is independent &
can be assigned/reassigned to ▪ Helps to perform job of back
▪ Software on these virtual
any server. up, archiving (old & unused
machines is separate from
data), recovery easily by
underlying hardware ▪ It allows a large physical
disguising the complexity of
network into multiple logical
▪ Basic idea of virtualization is storage access network
networks and vice- versa.
consolidation of server where [SAN].
multiple servers are ▪ Intended to optimize speed,
consolidated to create virtual scalability, flexibility etc.
server
▪ Two softwares: Hypervisor and
virtual machine manager.

Mnemonic & Relevant Question No.

16. G R I D C O M P U T I N G

▪ It is a computer network in which each computer’s resource (processor, storage, Network etc.) is shared
with other computer in a system/network.
▪ It is a distributed architecture of large number of computers connected to solve complex problems. E.g.:
Data mining.
▪ In the grid computing model, servers or personal computers run independent tasks and are loosely
linked by the Internet or low speed networks.
▪ It turns a computer network into a powerful super-computer.

16.1. B E N E F I T S O F G R I D C O M P U T I N G

1. Access to additional like computational power, Network, storage etc.

resources
2. Making use of under- It provides a framework to use/ exploit unutilized IT resources in an Org.
utilized resource
3. Resource Balancing It enables RB in which if a computer’s load peaks, it can transfer its work to
another computer with less utilization.
4. Parallel CPU capacity It helps in scalability & faster performance
5. Reliability Since high –end computing systems are used, grid computing is reliable.
Further due to multiple resources, if one computer fails, work will continue as
its work will be transferred to another computer in network.
6. Management It helps in better management of large No. of computer systems. It also
manages priorities among different projects.

Mnemonic & Relevant Question No.

cakishankumar.com P a g e | 4.16
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

16.2. TYPES OF RESOURCES IN GRID

Special Equipment
Computation Power Software and capacities,
Storage Communications
(CPU) License architecture and
policies
It’s the most common ▪ A grid ▪ Refers to ▪ Refers to those ▪ Different
resource shared in G.C. providing an network software computers in a
Processors offered by integrated bandwidth installed in Grid Grid will have
members of Grid may view of data issued for which are too different
differ in architecture, storage is sending one work expensive for architectures,
memory etc. but can called a Data from one installation on operating
still be shared. Grid. computer/ each member systems, devices,
machine to computer. capacities, and
Three ways to exploit ▪ Each machine
another. equipment.
this resource in G.C.: on grid ▪ Some software
provides some ▪ Bandwidth is vendor permits ▪ Grid can use
a) To run an App on
storage, even critical resource to install such criteria for
computer in grid
if temporary. and it should be s/w on all assigning job to
rather than locally.
redundant and computers in any member of
b) To run an App that
▪ Storage may
efficient, else it grid but at any Grid.
needs to be executed be memory
may affect given time,
multiple times on attached to ▪ For example,
effectiveness of only limited no.
diff. computers in a processors, some machines
G.C. of computer
Grid. RAM, ROM or may be
will be able to
secondary designated to
c) To split the work in use the
devices like only be used for
separate parts so software.
Hard Drive medical research.
that it can be
executed in parallel
on different
computers.

Mnemonic & Relevant Question No.

16.3. A P P L I C A T I O N S O F G R I D C O M P U T I N G

a) Civil engineers collaborate to do experimental research to design, execute, analyze, and validate
different models in earthquake engineering.
b) Insurance companies mine data from partner hospitals for fraud detection.
c) In scientific research, using an entire network of computers to analyze data.
d) In film industry, to give special effects in a movie.
e) In financial industry, to forecast the future of a particular stock.

Mnemonic & Relevant Question No.

16.4. G R I D C O M P U T I N G S E C U R I T Y C O N S T R A I N T S / I S S U E S T O C O N S I D E R

G.C. is a highly collaborative & distributed computing model. To develop secure Grid, following need to be
considered:
a) Secured Single Sign- User should be needed to authenticate once & should be able to access resources,
on

cakishankumar.com P a g e | 4.17
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

use them, & to communicate internally without further authentication.

b) Mgt. & Protection of User’s credentials like User Id, Passwords, PIN should be protected.
credentials
c) Support for secure Among Grid member computers.
group connections
d) Support for multiple There should be security for multiple participants of a Grid based on public and
implementation private key cryptography.
e) Inter-operability Access to local computer resource should have local security & there should be
between Grid Security Inter-operability between Grid Security & local security.
& local security
f) Standardization: Since Grid Computing is highly integrated system, standardizing protocols and
interfaces between Grid participants is a big issue.
g) Exportability The code should be exportable i.e. they cannot use a large amount of encryption
at a time.

Mnemonic & Relevant Question No.

17. C L O U D C O M P U T I N G

▪ “The Cloud” refers to applications, services, and data storage on the Internet.
▪ These service providers rely on giant server farms and massive storage devices that are connected via
Internet protocols.
▪ Cloud Computing refers to accessing these computing resources remotely through internet. E.g. Google
Drive, E-mail, Netflix etc.
▪ It is a combination of H/w & S/w based resources delivered as a service which can be accessed online.
▪ The location of physical resources and devices being accessed are typically not known to the end user.

17.1. C H A R A C T E R I S T I C S O F C L O U D C O M P U T I N G

All the characteristics may or may not be present in a specific Cloud solution.
a) Elasticity & Scalable Gives the user ability to expand or reduce resources according to requirement.
b) Pay per use User pays for cloud services only when they use it.
c) On Demand Cloud service is not permanent part of IT infrastructure. It is availed when
required.
d) Resiliency Failure of a server or storage resource does not affect Org as work is migrated
to different server in same data center or to different data center with or
without human intervention.
e) Multi – Tenancy Public cloud offers its services to multiple users making it multi–tenancy
f) Work load It is related with resiliency & cost consideration. A cloud service provider may
Management move workload from one data center to another due to:
a. save cost [where operating data center is cheap]
b. regulatory considerations
b) better network bandwidth.

cakishankumar.com P a g e | 4.18
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

Mnemonic & Relevant Question No.

17.2. A D V A N T A G E S O F C L O U D

a) Streamline business by getting more work done in less time with less resource.
process
b) Reduced capital Cost No need to spend huge amount on hardware and software etc.
c) Reduced spending on Tech as data can be accessed on demand on pay as per use basis.
Infrastructure
d) Improved Flexibility Fast changes can be done in work environment.
e) Pervasive Accessibility Data can be accessed from anywhere on any device through internet.
f) Minimize maintenance As infrastructure is maintained by cloud service provider.
g) Globalise the workforce As people can access cloud with internet across world.
h) Achieve economies of Cloud results in achieving efficient utilization of resources and that too at
scale reduced cost. Volume output or productivity can be increased even with
fewer systems and thereby reduce the cost per unit of a project or product.

Mnemonic & Relevant Question No.

17.3. D R A W B A C K S O F C L O U D

a) Loss of internet connection will result in loss of Access to cloud.

b) Security is major concern as data & Application working depend on third party.
c) Scalability may be affected as No control of user on IT infrastructure.
d) While cloud service provider provides unlimited capacity to user, there may be some restrictions on
services.
e) Inter-Operability- If two Apps use different cloud service providers, they may not co-operate with each
other.

Mnemonic & Relevant Question No.

17.4. T Y P E S O F C L O U D C O M P U T I N G E N V I R O N M E N T ( B A S E D O N U S A G E & D E P L O Y M E N T )

Private Cloud Public Cloud Hybrid Cloud Community Cloud

It resides within the It is provisioned for It is a combination of at least 1 It is provisioned for
boundaries of Org & open use by general Private (internal) cloud & at exclusive use by specific
used exclusively for public. least 1 Public (external) cloud. community of consumers
Org benefit. Also called Provider It may be regarded as a private from Organizations that
Also called Internal Clouds. cloud extended to public cloud. have shared concerns
Cloud or Corporate like security, compliance
May be owned & Aim is to use power of public etc.
Cloud operated by Business cloud by retaining benefit of
Can be managed by or Academic or Govt. Private Cloud. May be owned,
single organization organization or any managed, & operated by
Typically offered in either of one or more of the Org
[on premise private combination thereon. two ways:
cloud] or can be in community, a third
Administrated by 3rd a) A vendor has private cloud party or a combination

cakishankumar.com P a g e | 4.19
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23
outsourced to third party vendor over & forms a partnership with of them, and it may
party [outsourced Pvt Internet a public cloud provider or exist on or off premises.
cloud]. Sr. is offered on Pay b) a public cloud vendor forms In this, a private cloud is
Built by Internal IT per use basis. partnership with a vendor shared between several
Team using concepts that provides private cloud organizations.
of Virtualisation & platforms.
Grid Computing

17.4.1. C H A R A C T E R I S T I C S O F C L O U D C O M P U T I N G E N V I R O N M E N T

Basis Private cloud Public cloud Hybrid Cloud Community cloud

Security & High as it is deployed Less as it is offered Partially Secure - Partially Secure -
Privacy & managed by the by Third Party higher than public & higher than public &
Org itself lesser than private lesser than private
Cost Very High Affordable Less than Private Cost Effective
SLA Weak Stringent Stringent Stringent
Scalability Not Easy Highly Highly Yes
Specific Centralised Control Loss of Autonomy & Complex Mgt. Loss of Autonomy &
Points Privacy Privacy

Mnemonic & Relevant Question No.

17.5. T Y P E S O F C L O U D C O M P U T I N G S E R V I C E M O D E L

National Institute of Standards and Technology (NIST) defines three basic service models through which
cloud services are offered to users. These are as follows:
Infrastructure as a Service (IaaS) Platform as a Service [PaaS] Software as a Service [SaaS]
It is a H/w level service which provides It provides the user ability to It provides ability to user to
computing resources like access an App over internet.
➢ Develop & Deploy
➢ Processing power ➢ app on platform Software is installed, managed,
➢ Memory provided by Sr provider. updated & upgraded by cloud
➢ Network & Service provider.
PaaS changes Application
➢ Storage development from local User get access to App on pay
machine to online. per use (subscription) basis.
to cloud users to enable them to run
App on demand on pay per use basis. It provides Types
IT resources are installed & managed by - Programming language a) E-mail as a service (EaaS)
cloud Service provider & users use - App framework -
infrastructure in form of virtual - Database Provides integrated system
machine. of mailing, record
- Testing Tools
Example management, migrating,
- Other software
integration etc.
AWS, Google Compute Engine, development tools
OpenStack b) API as a service (APIaaS) -
Example
Characteristics of IaaS: Helps to explore
Google APP Engine
functionality of web services
a) Web Access - Enables user to Microsoft Azure Compute like Google Maps, Payroll
Access infra over Internet. No
Processing etc.
physical access.
c) Testing as a service (TaaS) -

cakishankumar.com P a g e | 4.20
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23
b) Metered Service - Allows user to Provides software testing
rent infrastructure rather than buy capabilities to users.
it & pay on usage basis. Difference between SaaS &
c) Scalability & Elasticity PaaS is that PaaS represents a
d) Shared Infrastructure - Multi platform for App development,
Tenancy while SaaS provides online Apps
that are already developed.
e) Centralized Management - It
ensures effective Resource
Management

17.5.1. F I V E I N S T A N C E S O F I A A S

Backend as a Database as Desktop as a

Network as a service Storage as a service
service service service
NaaS provides data STaaS provides
BaaS provides DBaaS provides DTaaS enables
communication storage infrastructure
back-end infra to database user to use
capacity to the user to to user to store data
users to connect infrastructure desktop
execute data intensive online. their App to cloud to user to virtualization
activities requiring User can access data Infrastructure. create, store, without buying
more network like from anywhere & Additional services modify & own
video conferencing. anytime over Internet. include user mgt, access infrastructure.
Enables creation of push notification databases.
virtual N/w & other N/w etc.
components.

Infrastructure is owned & managed by vendor

User pays on demand & pay as per use

User can use infrastructure without buying it

Accessible over Internet anytime and anywhere

17.6. O T H E R C L O U D S E R V I C E M O D E L S

Instance Description
a) Communication ▪ It is an outsourced enterprise communication solution that can be leased from a
as a Service single vender.
(CaaS)
▪ Examples: Voice over IP (VolP), Instant Messaging (IM), Collaboration and
Videoconferencing application using fixed and mobile devices.
b) Data as a ▪ Provides data on demand to a diverse set of users, systems or application. The
Service (DaaS) data may include text, images, sounds, and videos.
▪ Data encryption and operating system authentication are commonly provided for
security.
▪ However, as the data is owned by the providers, users can only perform read
operations on the data. DaaS is highly used in geography data services and
financial data services.

cakishankumar.com P a g e | 4.21
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

Instance Description
c) Security as a ▪ It is an ability given to the end user to access the security service provided by
Service the service provider on a pay-per- use basis.
(SECaaS)
▪ It is a new approach to security in which cloud security is moved into the cloud
itself whereby cloud service users will be protected from within the cloud using a
unified approach to threats.
d) Identity as a ▪ It is an ability given to the end users; typically, an organization or enterprise; to
Service (IDaaS) access the authentication infrastructure.
▪ Generally, IDaaS includes directory services, authentication services, risk and
event monitoring, single sign-on services, and identity and profile management.

Mnemonic & Relevant Question No.

17.7. P E R T I N E N T I S S U E S W I T H C L O U D C O M P U T I N G

Software Bugs in Interoperability

Hidden Unexpected Threshold
Legal Issues development large scale
cost Behaviour policy
in cloud distribution
Such cost App may Need to Developers It’s Each C.C. Main
may perform well at adhere to face difficult to vendor has objective of
include Co’s internal several difficulty in remove different APIs implementing
higher data center developing errors in & format for T.P. is to
▪ Regulatory
N/w but it may not secure Apps very large- importing/ Inform C.C.
requiremen
charge for work in same that can be scale exporting data. service
t
storage & manner in hosted in distributed Industry C.C. provider &
database cloud. ▪ Privacy cloud. system. standard do user about
Apps, for App behaviour laws not exist. what they
users who must be should do.
may be ▪ Data This creates
checked for security problem of A carefully
located unexpected drafted T.P.
far from law achieving
behaviour. interoperability outlines*
cloud These laws
service *E.g. How App vary from of App b/w two Generally, T.P
provider. allocates country to C.C vendors. is not present
resources on country & It is also & only legal
sudden Cloud users difficult to doc is SLA.
increase in have no move infra
demand and control over from one Cloud
how it where data is to another
allocates physically
unused stored.
resources

Mnemonic & Relevant Question No.

cakishankumar.com P a g e | 4.22
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

18. MOBILE COMPUTING

▪ Technology that allows transmission of data via a computer/ mobile device without having to be
connected to a fixed physical link (wireless).
▪ Users can transmit data from remote locations to other remote or fixed location, thus solving issue of
‘Mobility’
▪ Widely established, rapidly evolving & rapidly growing across world.

18.1. KEY COMPONENTS OF MOBILE COMPUTING

Mobile Communication Mobile Hardware Mobile Software

Infrastructure put in place to Handheld mobile device that Actual Program that runs on mobile H/w.
ensure seamless & reliable receives or access service of
It is the operating system of that
communication. mobility. Appliance and is essential component
Includes Mobile towers, E.g. – Portable Laptops, Tablet, that makes the mobile device operate.
comm. protocols & data laptop, mobile phone. Apps are also being developed by
formats etc. Organizations for use by customers.

Mnemonic & Relevant Question No.

18.2. W O R K I N G O F M O B I L E C O M P U T I N G

a) User enters or accesses data on hand held computing device using App.
b) This new data is transmitted from hand held computing device to physical I.S. where DB shall be
updated & New data is accessible to other system user as well.
c) Now, both systems i.e., handheld device & physical I.S. have same information & they are in sync.
d) This process works in same way starting from other direction.

18.3. B E N E F I T S O F M O B I L E C O M P U T I N G

a) Flexibility in working It has enabled users to work from anywhere as long as they are connected to a
network, thus enabling work from home or work while travelling.
b) Increased Employee as workers can simply work efficiently and effectively from which ever
Productivity location they see comfortable and suitable.
c) Improved Customer For example, by using a wireless payment terminal the customers in a
Service restaurant can pay for their meal without leaving their table.
d) Remote access to Provides mobile workforce with remote access to work order details, such as
work order details work order location, contact information, required completion date.
e) Improved Enables to improve Mgt. effectiveness by enhancing information flow & ability
Management to control mobile workforce.
effectiveness
f) Facilitates excellent Mobile computing facilitates excellent communication.
communication

Mnemonic & Relevant Question No.

cakishankumar.com P a g e | 4.23
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

18.4. L I M I T A T I O N S O F M O B I L E C O M P U T I N G

a) Insufficient Bandwidth It uses technologies such as GPRS & EDGE & 3G, 4G networks which are
slower than direct cable connection. Higher speed wireless LANs are
inexpensive but have very limited range.
b) Security standard Since public network is used, VPN should be carefully used.
c) Power consumption In case power is not available, batteries are used which are expensive.
d) Human Interface with device Small screen and small keys are hard to use.
e) Transmission Interference Weather, terrain and the range from the nearest signal point can all
interfere with signal reception. Signal in tunnel, lift, rural area may not
be good.
f) Potential Health Hazard No mobile should be used while driving as it distracts drivers. Cell phone
may interfere with sensitive medical devices, thus causing health issues.

Mnemonic & Relevant Question No.

19. G R E E N C O M P U T I N G

▪ Study & practice of environmentally sustainable computing or IT.

▪ Refers to using computer & IT resources in
➢ More efficient, Responsible & Environment friendly way.
▪ Objective

Reduce use of Maximize efficiency Promote recycling Bio – degradability of

hazardous material defunct product

19.1. GREEN COMPUTING BEST PRACTICES

Make
Recycle Reduce
Develop sustainable environmentally
consumption of Conserve Energy
Green Computing plan sound purchase
paper
decision
Involve all ▪ Dispose e- ▪ Purchase IT ▪ By using E- ▪ Use LCD & LED
stakeholders. waste as per resources based mail & monitors instead
Includes Govt. on Green electronic of CRT.
guidelines & Attributes. archiving.
a) Checklist ▪ Use notebook/
regulations.
▪ Recognize ▪ Online Laptop rather than
b) Recycling policies
▪ Manufacturer manufacturer’s marketing the Desktop.
c) Recommendation must offer efforts to reduce rather than
for purchasing G.C. ▪ Use power
safe end of life environmental paper-based
Management
d) Reduction of paper mgt. & impact of product marketing.
feature to turn off
consumption recycling by reducing or
▪ While printing, hard drives and
options when eliminating use
e) Use cloud print both sides displays after
product is of
computing so that using smaller several minutes of
unusable. environmentally
multiple Org share font size. inactivity.
sensitive
common infra. ▪ It should
material. ▪ Use ‘Track ▪ Use alternative
recycle
f) Create awareness changes’ in E- source of energy
computer ▪ Use shared

cakishankumar.com P a g e | 4.24
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23
about commitment using its Resources & document like solar energy.
to G.C. recycling virtualization rather than red
▪ Adapt more of Web
service. that can help to line correction
conferencing
improve resource on paper.
instead of
utilization, reduce
travelling.
energy costs &
simplify maint.

Mnemonic & Relevant Question No.

19.2. G R E E N IT S E C U R I T Y S E R V I C E S & C H A L L E N G E S

▪ Green Security is a new research field which involves defining & investigating security solutions under
the energy-aware perspective.
▪ The objectives of Green Security are to:
a) Evaluate the actual security mechanisms in order to assess their energy consumption.
b) Building new security mechanisms by considering the energy costs from the design phase.
▪ Need to evaluate a client’s infrastructure to accommodate green technology is really a vital issue’.
▪ Green security can be a cost-efficient and lucrative green IT service for solution providers.

20. B R I N G Y O U R O W N D E V I C E (BYOD)

▪ It is a business policy that allows Employees to use their preferred IT device like Laptop for business
purpose.
▪ Employees can connect personal device to corporate network to access information & application.
▪ It makes workspaces flexible as it enables employees to work beyond required hours.

20.1. A D V A N T A G E S O F BYOD

a) Happy Employees as Employees love to use own device at work & need not carry multiple
devices.
b) Increased Employee as he is not required to learn working on new system.
efficiency
c) Lower IT Budget Leads to financial saving as Org is not required to provide device to staffs.
d) Reduced support requirement as Employees maintain the device on their own, resulting in cost saving.
e) Early adoption of technology as Employees are more proactive in adopting new technologies which leads
to enhanced productivity.

Relevant Question No.

20.2. E M E R G I N G T H R E A T S / D I S A D V A N T A G E S O F BYOD

Network Risk Device Risk Application Risk Implementation Risk

Referred as ‘Lack of Device Referred as ‘Loss of Referred as ‘App Virus Referred as ‘Weak
Visibility’ Device’ & Malware’ BYOD policy’
IT practice team is unaware Device can be lost or Employee’s personal Effective

cakishankumar.com P a g e | 4.25
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

Network Risk Device Risk Application Risk Implementation Risk

about total no of devices stolen causing enormous device may not be implementation of
connected to Org network. loss in terms of finance protected by security BYOD program should
This can be hazardous. & reputation. software or security cover implementation
Company trade secrets software may be policy along with
Suppose virus hits N/w & outdated. above technical issues.
company needs to scan all can be retrieved from a
devices connected to N/w. misplaced device. Org is not clear who is Note: A strong BYOD
responsible for device policy mitigate the
It may be possible some security - Organization risk.
employee’s device skip scan. or employee.

Mnemonic & Relevant Question No.

21. WEB 3.0

Introduction
➢ Web 1.0 → Initial days of Google/Prior to Google. Static page that could be read. No write, No sharing
➢ Web 2.0 → Dynamic page + Read & write (users can upload photos, comment on other’s photo).
Resulted in Social media network b/w people & people.
➢ Web 3.0 → Web 2.0 + such device & websites are able to generate, store & share data with other
compatible devices without human intervention.
Web 3.0
It is known as semantic web. (Study of how language is used to produce meaning).
Refers to sites wherein the computers will generate raw data on their own without direct user interaction.
It is next logical step in evolution of Internet & web-tech.
Underlying Concept: It uses
a) Semantic web tech
b) Artificial intelligence
c) Machine learning
d) User behavior
e) Widgets/Apps
f) User engagement depending on interest of users .
Example: Content management systems along with AI can answer questions posed by the users, because
the application can think on its own and find the most probable answer, as per context
In this way, Web 3.0 can also be described as a “machine to user” standard in the internet.

21.1. C O M P O N E N T S O F WEB 3.0

Semantic web Web Services/Apps

▪ It provides common framework to web user that ▪ Software system that supports computer to
can be used to share & access data across website. computer interaction over internet.
▪ It allows machines to interpret data/info so that
machines are able to take decision on their own by
finding and acting upon relevant data on web.

cakishankumar.com P a g e | 4.26
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

21.2. F U T U R E O F W E B T E C H N O L O G I E S

a) Web 4.0 called “Intelligent Web” is autonomous, proactive, content-exploring, self-learning,

collaborative, and content-generating agents based on fully matured semantic & Artificial Intelligence.
Examples- Services interacting with sensors or virtual reality services.
b) Web 5.0, “The Telepathic Web/ The Symbionet Web” is set to be highly complex future web generation,
to be present after the year 2030 in which some things such as brain implants are expected to be
popular.
Brain implants will give people the ability to communicate with the internet through thought, to think
of a question and open up a web page.
Any sort of payments, such as groceries, will be paid for with a microchip in the brain or the hand and
all devices will be connected to the internet.

Relevant Question No.

22. I N T E R N E T O F T H I N G S (IOT)

▪ IoT is a system of –
➢ interrelated Computing devices, mechanical & Digital machines, animals or people with capability to
➢ transfer data over internet
➢ without human to human or human to machine interaction.
▪ Embedded with electronics, Internet connectivity, and other forms of hardware (like sensors), these
devices can communicate & interact with others over the Internet, and can be remotely monitored and
controlled.
▪ E.g. Washing machine with wi-fi capacity can connect themselves to home wi-fi & once connected, can
be controlled through manufacture’s app from anywhere.

22.1. A P P L I C A T I O N S O F IOT

a) All home appliances to be connected and that shall create a virtual home. Home owners can keep track
of all activities in house through their hand-held devices including home security through CCTV.
b) Office machines shall be connected through net.
HR managers can see how many people had a cup of coffee from vending machine & how many are
present.
How many printouts are being generated through office printer?
c) Governments can keep track of resource utilizations / extra support needed.
Under SWACHH mission government can tag all dustbins with IOT sensors. They (dustbins) generate a
message once they are full.
d) Smart Wearables
e) Connected Cars
f) Smart Supply Chain

Relevant Question No.

22.2. R I S K S O F IOT

cakishankumar.com P a g e | 4.27
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

Risk to Product Manufacturer

Technology Environmental
Risk to User Impact on Data storage Intentional Risk Risk
Business and analytics Obsolescence
a) Security -Greatest Manufacturer manufacturers On launching Due to May have
threat. not providing need to ensure new device, Lack of impact on
Since devices are IOT will not that the huge features of technology house air
connected to N/w, be able to data generated old device standard & quality due to
they will be hit by all survive in from IoT devices may be Due to use of heavy
N/w related risks like future is kept secured. disabled or variety of earth metals
Hacking/Loosing slowed down. hardware & in devices.
▪ Hacker this data may Where a software
▪ Bomb be distractors manufacturer used on
▪ Trojan etc. for entity as buys different
well as the another, it devices, it’s
b) Privacy, Autonomy & individual
Control - Risk of loss may not difficult to
of control over support old develop
personal life as devices sold. App.
personal data may
be leaked.
Other major concern
is Who has ownership
of this personal data

Relevant Question No.

23. A R T I F I C I A L I N T E L L I G E N C E (AI)

▪ Intelligence means ability to use memory, knowledge & experience to solve a problem.
▪ Intelligence exhibited/ displayed by a machine is called AI.
▪ AI is an ability of a computer to simulate human capabilities based on predetermined set of rules.
Application Risks
➢ Autonomous vehicle (self-driving cars) a) AI Relies on data it gets. Thus, incorrect Input will give
incorrect conclusions.
➢ Creating Art, poetry
b) AI (robots) carries security threat. Countries are
➢ Playing online game like chess discussing to have a kill switch in AI capable devices
➢ Online Assistants (SIRI, ALEXA) otherwise someday machine may start controlling
humans.
➢ Medical diagnosis, in cancer Research
c) In long term, AI may kill people’s skill of thinking the
➢ Robotics
unthinkable. AI can’t think out of the box.

24. M A C H I N E L E A R N I N G (ML)

▪ Application of AI that enable computers to learn automatically without being explicitly programmed.
▪ Science and art of programming computers so that they can learn from data & can change when
exposed to new data.
▪ Machine learning can be used for solving problems that either are too complex for traditional
approaches or have no known algorithm such as speech recognition.
▪ Application & risks are similar to AI.

cakishankumar.com P a g e | 4.28
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

Relevant Question No.

25. BLOCKCHAIN

▪ Blockchain, sometimes referred to as Distributed Ledger Technology (DLT) is a

➢ shared, peer-to-peer, & decentralized (not controlled by any bank, corporation, or government)
➢ open ledger of transactions system with
➢ no trusted third parties in between.
▪ This ledger database has every entry as permanent as it is an append-only database which cannot
be changed or altered. All transactions are fully irreversible with any change in the transaction
being recorded as new transaction.
▪ A blockchain generally uses a chain of blocks, with each block representing the digital information
stored in public database (“the chain”).
▪ A simple analogy for understanding blockchain technology is a Google Doc. When we create a
document and share it with a group of people, the document is distributed instead of copied or
transferred. This creates a decentralized distribution chain that gives everyone access to the
document at the same time. No one is locked out awaiting changes from another party, while all
modifications to the document are being recorded in real-time, making changes completely
transparent.

25.1. A P P L I C A T I O N S O F B L O C K C H A I N

a) Financial Used to provide transaction log of any transaction of asset - whether physical or
Services digital such as laptops, automobiles, real estate, etc. from one person to another.
b) Healthcare Provides secure sharing of medical data by increasing the privacy, security, and
interoperability of the data by eliminating the third party and related overhead cost.
c) Government Improves the transparency and provides a better way to monitor and audit the
transactions like land registration, vehicle registration & management, e-voting etc.
d) Travel Can be applied in storing important documents like passports/ other identification
Industry cards, reservations and managing travel insurance, loyalty, and rewards.
e) Economic Makes possible financial and economic forecasts based on prediction of markets,
Forecasts decentralized voting, and stock trading, thus enabling the organizations to plan and
shape their businesses.

cakishankumar.com P a g e | 4.29
Harder you work, luckier you get
 E-Commerce, M-Commerce & Emerging Technologies – Nov 23

Mnemonic & Relevant Question No.

25.2. R I S K S O F B L O C K C H A I N

1. With the use of blockchain, organizations need to consider risk with a wider perspective as different
members of a particular blockchain may have different risk appetite/ risk tolerances that may
further lead to conflict when monitoring controls are designed for a blockchain.
There may be questions about who is responsible for managing risks if no one party is in -charge and
how proper accountability is to be achieved in a blockchain.
2. The reliability of financial transactions is dependent on the underlying technology and if this
underlying mechanism has been tampered with, it could render the financial information stored in
the ledger to be inaccurate and unreliable.
3. In the absence of any central authority to administer and enforce controls, there could be a
challenge in the development and maintenance of process control activities.
2. As blockchain involves humongous data getting updated frequently, risk related to information
overload could potentially challenge the level of monitoring required. Furthermore, it is difficult to
find competent people to design and perform effective monitoring.

Mnemonic & Relevant Question No.

25.3. C O N T R O L S O F B L O C K C H A I N

a) Computerized As opposed to traditional manual techniques, computerized continuous

continuous monitoring techniques shall be used to perform ongoing evaluations, considering
monitoring the large volume of data processed.
b) Data analytics Suitable data analytics procedures shall be developed to identify and obtain
procedures relevant and quality data from the blockchain so that it can then be processed
into information that subsequently can be used to support management’s
business processes and reporting objectives.
c) Communication Communication methods shall be developed to ensure that operational changes &
methods updates regarding use of blockchain are communicated to appropriate personnel.
d) Assessment of The unique aspects of blockchain such as
Unique aspects
➢ consensus protocols and smart contracts
shall be assessed thoroughly.
e) Internal and Both internal and external auditors shall be engaged in discussions during the
external auditors development or identification of a blockchain so as to make the management
understand the typical auditability issues associated with using blockchain.

Mnemonic & Relevant Question No.

cakishankumar.com P a g e | 4.30
Harder you work, luckier you get