Mobile Computing

Mobile Computing refers a technology that allows transmission of data, voice and video via a
computer or any other wireless enabled device. It is free from having a connection with a fixed
physical link. It facilitates the users to move from one physical location to another during
communication.

It is a technology that provides an environment that enables users to transmit data from one
device to another device without the use of any physical link or cables.

It allows transmission of data, voice and video via a computer or any other wireless-enabled
device without being connected to a fixed physical link. In this technology, data transmission
is done wirelessly with the help of wireless devices such as mobiles, laptops etc.

This is only because of Mobile Computing technology that you can access and transmit data
from any remote locations without being present there physically. Mobile computing
technology provides a vast coverage diameter for communication. It is one of the fastest and
most reliable sectors of the computing technology field.
The concept of Mobile Computing can be divided into three parts:

i. Mobile Communication

ii. Mobile Hardware

iii. Mobile Software

i. Mobile Communication
Mobile Communication specifies a framework that is responsible for the working of mobile
computing technology. In this case, mobile communication refers to an infrastructure that
ensures seamless and reliable communication among wireless devices. This framework ensures
the consistency and reliability of communication between wireless devices. The mobile
communication framework consists of communication devices such as protocols, services,
bandwidth, and portals necessary to facilitate and support the stated services. These devices are
responsible for delivering a smooth communication process.

Mobile communication can be divided in the following four types:

1. Fixed and Wired

2. Fixed and Wireless

3. Mobile and Wired

4. Mobile and Wireless

 1. Fixed and Wired: In Fixed and Wired configuration, the devices are fixed at a position,
and they are connected through a physical link to communicate with other devices. For
Example, Desktop Computer.
2. Fixed and Wireless: In Fixed and Wireless configuration, the devices are fixed at a
position, and they are connected through a wireless link to make communication with
other devices. For Example, Communication Towers, WiFi router
3. Mobile and Wired: In Mobile and Wired configuration, some devices are wired, and
some are mobile. They altogether make communication with other devices. For
Example, Laptops.
4. Mobile and Wireless: In Mobile and Wireless configuration, the devices can
communicate with each other irrespective of their position. They can also connect to
any network without the use of any wired device. For Example, WiFi Dongle.

ii. Mobile Hardware

Mobile hardware consists of mobile devices or device components that can be used to receive
or access the service of mobility. Examples of mobile hardware can be smartphones, laptops,
portable PCs, tablet PCs, Personal Digital Assistants, etc.

These devices are inbuilt with a receptor medium that can send and receive signals. These
devices are capable of operating in full-duplex. It means they can send and receive signals at
the same time. They don't have to wait until one device has finished communicating for the
other device to initiate communications.

iii. Mobile Software

Mobile software is a program that runs on mobile hardware. This is designed to deal capably
with the characteristics and requirements of mobile applications. This is the operating system
for the appliance of mobile devices. In other words, you can say it the heart of the mobile
systems. This is an essential component that operates the mobile device.

Applications of Mobile Computing

Following is a list of some significant fields in which mobile computing is generally applied:
 o Web or Internet access.

o Global Position System (GPS).

o Emergency services.

o Entertainment services.
o Educational services.

Mobile computing has many applications, including in business, healthcare, education,

entertainment, and navigation.
Business

• Mobile CRM helps businesses manage customer relationships

• Cloud-based business applications allow users to access corporate applications from

anywhere

Healthcare

• Health tracking apps help monitor health

• Mobile cloud computing provides hospitals with on-demand services

Education

• E-learning platforms help students learn online

Entertainment

• Streaming services allow users to watch videos and listen to music

Navigation GPS apps help users navigate.

Other applications

• Mobile computing allows users to communicate through voice, messages, and mails

• Mobile computing allows users to surf the internet

• Mobile computing allows users to click photos and record videos

Mobile computing benefits

• Mobile computing allows users to access information and applications while on the
move
• Mobile computing allows users to carry around computing devices with great
capabilities

Mobile computing technologies

• RFID, Wi-Fi, and cellular systems are examples of mobile computing technologies
 WAP Technology
• WAP is a protocol that is introduced in 1999, which stands for Wireless application
protocol.
• It offers Internet communications over wireless devices, such as mobile phones. It
offers a way of creating web applications for mobile devices, and it is designed for
micro-browsers.
• It enables access to the internet in mobile devices and uses the mark-up language like
WML, which stands for Wireless Markup Language. WAP offers the facility to connect
interactive wireless devices (like mobile phones) to the internet and enhances wireless
specification interoperability.

• WAP may be created on any kind of operating system, and it acts in an open application
environment.
• It is more beneficial for mobile users as it has the ability to deliver electronic
information efficiently.
• In 1998, Nokia, Motorola, Ericson, and Unwired Planet founded the WAP Forum,
whose objective was to standardize several wireless technologies with the help of
protocols.
• The WAP CSS (cascading style sheet) makes capable of developers to format screen
sizes in order to mobile device adaptability. When the WAP CSS content is used, then
reformatting is not required. It controls page layout compatibility with different mobile
device's display screens.

WAP Model

▪ In the mobile device, the user opens the web browser and access the website and visit
webpages accordingly.
▪ The mobile device forwards the URL request to a WAP gateway through the network
using the WAP protocol.
▪ Then, the WAP gateway refers to this request over the internet after translating it into a
conventional HTTP URL request.
▪ The specified Web server accepts the request and processes the request.
 ▪ Then, it returns the response to the mobile device in the WML file through the WAP
gateway that will be displayed in the web browser on the device.

WAP Protocol stack

1. Application Layer (WAE)

The Wireless Application Environment contains content development programming languages

like WML and mobile device specifications. It functions much like a JavaScript and holds the
tools that wireless Internet content developers use. It includes scripting languages such as
WML and WML Script that are used in conjunction with WML.

2. Session Layer (WSP)

It determines the session will be connection-oriented or connectionless between the device and
the network and offers a reconnection and fast connection suspension. The data is passed both
ways between the network and the device in the connection-oriented session. Then, WSP
forwards the packet to the next layer WTP (Wireless Transaction Protocol). When the
information is being streamed or broadcast from the network to the device, commonly, the
connectionless session is used. Then, WSP forwards the packet to the WDP (Wireless Datagram
Protocol) layer.

3. Transaction Layer (WTP)

The Wireless Transaction Protocol offers transaction support. It is a part of TCP/IP and runs on
top of UDP, which stands for User Datagram Protocol.
4. Security Layer (WTLS)

The Wireless Transport Layer Security provides security in terms of data integrity, privacy and
authentication that help to save your data. It also has the ability to work like Transport Layer
Security. Also, it contains security features that have Transport Layer Security.

5. Transport Layer (WDP)

With the network carrier layer, the Wireless Datagram Protocol functions in conjunction and
presents a constant data format to higher layers of WAP protocol stack.

Advantages of WAP

o Portability
o Cost and Application Development Time Reduction

o No hardware obsolescence

o Real-time send/receive data

o Most modern mobile telephone devices support WAP

o Implementation near to the Internet model

o Time-saving

o Increased sales for devices, infrastructure & gateway manufacturer.

o Personalized

o WAP is a rapidly evolving technology.

o Wireless Application Protocol is an open source that is totally free of cost.

o WAP can be used over multiple platforms.

o Neither it nor network standards are affected.

o Higher controlling possibilities are offered.

o It follows a model that is similar to the Internet.

o You can send and receive real-time data with WAP.

o WAP is supported by the majority of current mobile phones and devices.

Disadvantages of WAP

o Not very familiar to the users

o The third party is included
 o The business model is expensive

o Low speeds, security, and very small user interface

o Small display screens

o Limited bandwidth
o Speed of access and limited availability

o At some places it is very difficult to access the Internet, and also at some places it is
totally impossible.
o Less secure.

o WAP provides a small User interface (UI).

Applications for WAP

o Corporate Applications
o Mobile Banking
o Games
o Mobile Commerce
o Qualitative Information

Mobile information device

A mobile information device is a portable computing device that can be used to access
information, perform tasks, and connect with others. Examples of mobile information devices
include smartphones, tablets, and e-readers.

Features
• Wireless: Can connect to the internet or other devices using Wi-Fi, Bluetooth, cellular
networks, or near-field communication

• Power: Uses a battery to store power and operate without a physical connection to
electricity

• Storage: Has local data storage that can be non-removable or removable

• Input: Has a user interface, such as a touchscreen or keyboard

• Communication: Can make voice or video calls

• Sensors: May have sensors to record and store information, such as a camera, compass,
or activity monitor
 Web Security
Web Security is an online security solution that will restrict access to harmful websites, stop
web-based risks, and manage staff internet usage.

Websites are always prone to security threats/risks.

For example- when you are transferring data between client and server and you have to protect
that data that security of data is your web security.

Security Threat

A threat is nothing but a possible event that can damage and harm an information system.
A security Threat is defined as a risk that, can potentially harm Computer systems &
organizations.

Whenever an individual or an organization creates a website, they are vulnerable to security

attacks. Security attacks are mainly aimed at stealing altering or destroying a piece of personal
and confidential information, stealing the hard drive space, and illegally accessing passwords.
So whenever the website you created is vulnerable to security attacks then the attacks are going
to steal your data alter your data destroy your personal information see your confidential
information and also it accessing your password.

Top Web Security Threats

• Cross-site scripting (XSS)

• SQL Injection
• Phishing

• Ransomware

• Code Injection

• Viruses and worms

• Spyware

• Denial of Service

Security Consideration
• Updated Software: You need to always update your software. Hackers may be aware
of vulnerabilities in certain software, which are sometimes caused by bugs and can be
used to damage your computer system and steal personal data. Older versions of
software can become a gateway for hackers to enter your network. Software makers
soon become aware of these vulnerabilities and will fix vulnerable or exposed areas.
 That’s why It is mandatory to keep your software updated, It plays an important role in
keeping your personal data secure.

• Beware of SQL Injection: SQL Injection is an attempt to manipulate your data or your
database by inserting a rough code into your query. For e.g. somebody can send a query
to your website and this query can be a rough code while it gets executed it can be used
to manipulate your database such as change tables, modify or delete data or it can
retrieve important information also so, one should be aware of the SQL injection attack.

• Cross-Site Scripting (XSS): XSS allows the attackers to insert client-side script into
web pages. E.g. Submission of forms. It is a term used to describe a class of attacks that
allow an attacker to inject client-side scripts into other users’ browsers through a
website. As the injected code enters the browser from the site, the code is reliable and
can do things like sending the user’s site authorization cookie to the attacker.
• Error Messages: You need to be very careful about error messages which are generated
to give the information to the users while users access the website and some error
messages are generated due to one or another reason and you should be very careful
while providing the information to the users. For e.g. login attempt – If the user fails to
login the error message should not let the user know which field is incorrect: Username
or Password.

• Data Validation: Data validation is the proper testing of any input supplied by the user
or application. It prevents improperly created data from entering the information
system. Validation of data should be performed on both server-side and client-side. If
we perform data validation on both sides that will give us the authentication. Data
validation should occur when data is received from an outside party, especially if the
data is from untrusted sources.

• Password: Password provides the first line of defense against unauthorized access to
your device and personal information. It is necessary to use a strong password. Hackers
in many cases use complex software that uses brute force to crack passwords.
Passwords must be complex to protect against brute force. It is good to enforce
password requirements such as a minimum of eight characters long must including
uppercase letters, lowercase letters, special characters, and numerals.

Firewall
A firewall is a network security device either hardware or software-based which monitors all
incoming and outgoing traffic and based on a defined set of security rules it accepts, rejects, or
drops that specific traffic. It acts like a security guard that helps keep your digital world safe
from unwanted visitors and potential threats.

• Accept: allow the traffic

• Reject: block the traffic but reply with an “unreachable error”
 • Drop: block the traffic with no reply

A firewall is a type of network security device that filters incoming and outgoing network
traffic with security policies that have previously been set up inside an organization. A firewall
is essentially the wall that separates a private internal network from the open Internet at its very
basic level.

Advantages of Using Firewall

• Protection From Unauthorized Access: Firewalls can be set up to restrict incoming

traffic from particular IP addresses or networks, preventing hackers or other malicious
actors from easily accessing a network or system. Protection from unwanted access.

• Prevention of Malware and Other Threats: Malware and other threat prevention:
Firewalls can be set up to block traffic linked to known malware or other security
concerns, assisting in the defense against these kinds of attacks.

• Control of Network Access: By limiting access to specified individuals or groups for

particular servers or applications, firewalls can be used to restrict access to particular
network resources or services.

• Monitoring of Network Activity: Firewalls can be set up to record and keep track of
all network activity.
• Regulation Compliance: Many industries are bound by rules that demand the usage
of firewalls or other security measures.
• Network Segmentation: By using firewalls to split up a bigger network into smaller
subnets, the attack surface is reduced and the security level is raised.

Disadvantages of Using Firewall

• Complexity: Setting up and keeping up a firewall can be time-consuming and difficult,
especially for bigger networks or companies with a wide variety of users and devices.
• Limited Visibility: Firewalls may not be able to identify or stop security risks that
operate at other levels, such as the application or endpoint level, because they can only
observe and manage traffic at the network level.

• False Sense of Security: Some businesses may place an excessive amount of reliance
on their firewall and disregard other crucial security measures like endpoint security or
intrusion detection systems.
 • Limited adaptability: Because firewalls are frequently rule-based, they might not be
able to respond to fresh security threats.

• Performance Impact: Network performance can be significantly impacted by

firewalls, particularly if they are set up to analyze or manage a lot of traffic.

• Limited Scalability: Because firewalls are only able to secure one network, businesses
that have several networks must deploy many firewalls, which can be expensive.

• Limited VPN support: Some firewalls might not allow complex VPN features like
split tunneling, which could restrict the experience of a remote worker.

• Cost: Purchasing many devices or add-on features for a firewall system can be
expensive, especially for businesses.

Transaction security
Transaction security, also known as payment security, refers to a category of practices,
protocols, tools and other security measures used during and after business transactions to
protect sensitive information and ensure the safe and secure transfer of customer data.
While online transactions pose unique challenges for transaction security, they are critical for
both online and offline businesses in building consumer trust, mitigating fraud and maintaining
regulatory compliance.

Coinciding with the accelerated rise of e-commerce and online transactions, transaction
security has become a major concern for any business that handles payments and the transfer
of valuable assets, such as financial institutions, cryptocurrency exchanges and retailers. Other
use cases include online gaming marketplaces, alternative payment methods like ApplePay and
Venmo and any service responsible for processing sensitive legal documents (such as online
tax filing services or various official government offices).

To prevent financial losses resulting from fraudulent transactions and provide a trustworthy
user experience for customers and clients sharing their personal data, common transaction
security measures include advanced modern data encryption, multi-factor authentication
(MFA) and digital signatures. These security protocols mitigate the risk of payment fraud and
customer data theft resulting from a security breach, for which many businesses might be
legally liable, depending on their jurisdiction.
While most transaction security measures are put in place during the transaction itself,
transaction security also extends to internal business policies that govern the treatment of any
sensitive transaction data stored by an organization or business, such as credit card numbers
and account numbers. For cybersecurity professionals invested in database security,
transaction security means not only monitoring online transactions in real-time for suspicious
activity and unauthorized transactions but also proactively identifying and mitigating any
internal security vulnerabilities. Modern transaction security system service providers often
incorporate a customizable notification functionality and other automation to facilitate secured
transactions at scale.

Transaction security threats

• Phishing
Phishing scams, in which cybercriminals use fraudulent messages to manipulate targets into
revealing sensitive information, pose a threat to both customers and businesses. Phishing scams
often target consumers in an attempt to directly steal their credit card information for use in
fraudulent transactions. They can also target businesses in an attempt to steal customer payment
information in bulk.

• Card-not-present fraud
While in-person transactions typically require a physical credit card, transactions made online
or over the phone often require only a credit card number. This loophole can open up online or
telephone-based transactions to card-not-present fraud, in which fraudsters use stolen numbers
to make fraudulent transactions. While a customer may still retain their physical credit card,
they may be totally unaware that their card details have been stolen.

• Account takeover fraud

Another risk posed by phishing is account takeover fraud. Fraudsters may use phishing or other
means to seize unauthorized access to a consumer’s banking or online shopping account and
proceed to make unauthorized purchases.

• Business email compromise (BEC) scams

BEC scams are also a common consequence of successful phishing schemes. When a
cybercriminal gains access to a compromised business email account, they might impersonate
an authorized employee or vendor and attempt to request a fraudulent wire transfer.

• Synthetic identity fraud (SIF)

Yet another risk resulting from successful phishing attacks, SIF is a type of fraud in which
scammers use a combination of real, stolen personally identifiable information (PII) to create
fabricated identities for various fraudulent activities, such as payment default schemes in which
a scammer purchases a product on credit or layaway with no intention of making future
payments.

• Man-in-the-middle attacks (MITM)

A well-known form of cyberattack, during a MITM attack, a hacker will surreptitiously
position themselves between two parties who believe they have a private connection. The
attacker may attempt to manipulate their transferred data or simply eavesdrop to steal any
private payment information that may be shared.
Types of transaction security
• Encryption
The backbone of data privacy, businesses and customers rely on data encryption to protect
sensitive information during and after transactions. Commonly used encryption standards like
Secure Sockets Layer (SSL) and Transport Layer Security (TLS) are frequently used during
online transactions to prevent unauthorized access, tampering and theft.

• Tokenization
Tokenization is a process that replaces sensitive customer data, like credit card numbers, with
unique tokens that can neither be used to make fraudulent transactions nor reverse engineer the
original payment information. These tokens are then used to reference the original payment
information, which is stored in a secure token vault. Tokenization both reduces the risk
associated with data breaches and simplifies regulatory compliance since the tokens
themselves are useless even if they fall into the wrong hands.

• Authentication
As a foundational form of transaction security, authentication practices long predate the internet
age. Whereas in the past a merchant might request a form of photo identification before
accepting a personal check, modern digital authentication measures have increased in
sophistication. Single-factor authentication (SFA) requires one form of identification, such as
a password or a pin; two-factor authentication (2FA) requires additional forms of identification,
such as a one-time passcode sent to a registered device or email. Other standard authentication
methods include requiring a card verification value (CVV) for credit card payments and
biometric authentication (such as facial recognition or fingerprint scanning).

• Secure payment gateways

Secure payment gateways are a crucial part in establishing strong transaction security and
building and maintaining customer trust. These gateways enable transaction processing
between the customer, business and payment processor or acquiring bank. Secure payment
gateways often combine various transaction security techniques, including encryption,
tokenization and authentication, to ensure data security.

Network Security
Any action intended to safeguard the integrity and usefulness of your data and network is
known as network security. In other words, Network security is defined as the activity created
to protect the integrity of your network and data.

Network security is the practice of protecting a computer network from unauthorized access,
misuse, or attacks. It involves using tools, technologies, and policies to ensure that data
traveling over the network is safe and secure, keeping sensitive information away from hackers
and other threats.
It uses several layers of protection, both at the edge of the network and within it. Each layer
has rules and controls that determine who can access network resources. People who are
allowed access can use the network safely, but those who try to harm it with attacks or other
threats are stopped from doing so.
The basic principle of network security is protecting huge stored data and networks in layers
that ensure the bedding of rules and regulations that have to be acknowledged before
performing any activity on the data. These levels are:

• Physical Network Security: This is the most basic level that includes protecting the
data and network through unauthorized personnel from acquiring control over the
confidentiality of the network. The same can be achieved by using devices like
biometric systems.

• Technical Network Security: It primarily focuses on protecting the data stored in the
network or data involved in transitions through the network. This type serves two
purposes. One is protected from unauthorized users, and the other is protected from
malicious activities.

• Administrative Network Security: This level of network security protects user

behavior like how the permission has been granted and how the authorization process
takes place. This also ensures the level of sophistication the network might need for
protecting it through all the attacks. This level also suggests necessary amendments that
have to be done to the infrastructure.

Types of Network Security

There are several types of network security through which we can make our network more
secure, Your network and data are shielded from breaches, invasions, and other dangers by
network security. Here below are some important types of network security:
Email Security

Email Security is defined as the process designed to protect the Email Account and its contents
safe from unauthorized access. For Example, you generally see, fraud emails are automatically
sent to the Spam folder. because most email service providers have built-in features to protect
the content.

The most common danger vector for a security compromise is email gateways. Hackers create
intricate phishing campaigns using recipients’ personal information and social engineering
techniques to trick them and direct them to malicious websites. To stop critical data from being
lost, an email security programme restricts outgoing messages and stops incoming threats.

Network Segmentation

Network traffic is divided into several categories by software-defined segmentation, which also
facilitates the enforcement of security regulations. Ideally, endpoint identity—rather than just
IP addresses—is the basis for the classifications. To ensure that the appropriate amount of
access is granted to the appropriate individuals and that suspicious devices are controlled and
remediated, access permissions can be assigned based on role, location, and other factors.

Access Control

Your network should not be accessible to every user. You need to identify every user and every
device in order to keep out any attackers. You can then put your security policies into effect.
Noncompliant endpoint devices might either have their access restricted or blocked. Network
access control (NAC) is this process.
Sandboxing

Sandboxing is a cybersecurity technique in which files are opened or code is performed on a

host computer that simulates end-user operating environments in a secure, isolated
environment. To keep threats off the network, sandboxing watches the code or files as they are
opened and searches for harmful activity.

Cloud Network Security

This is very vulnerable to the malpractices that few unauthorized dealers might pertain to. This
data must be protected and it should be ensured that this protection is not jeopardized by
anything. Many businesses embrace SaaS applications for providing some of their employees
the allowance of accessing the data stored in the cloud. This type of security ensures creating
gaps in the visibility of the data.

Workloads and applications are no longer solely housed in a nearby data centre on-site. More
adaptability and creativity are needed to protect the modern data centre as application
workloads move to the cloud.
Web Security

A online security solution will restrict access to harmful websites, stop web-based risks, and
manage staff internet usage. Your web gateway will be safeguarded both locally and in the
cloud. “Web security” also include the precautions you take to safeguard your personal website.

Intrusion Prevention System(IPS)

An intrusion Prevention System is also known as Intrusion Detection and Prevention System.
It is a network security application that monitors network or system activities for malicious
activity. The major functions of intrusion prevention systems are to identify malicious activity,
collect information about this activity, report it, and attempt to block or stop it.

Antivirus and Anti-malware Software

This type of network security ensures that any malicious software does not enter the network
and jeopardize the security of the data. Malicious software like Viruses, Trojans, and Worms is
handled by the same. This ensures that not only the entry of the malware is protected but also
that the system is well-equipped to fight once it has entered.
Firewalls Security
A firewall is a network security device, either hardware or software-based, which monitors all
incoming and outgoing traffic and based on a defined set of security rules accepts, rejects, or
drops that specific traffic. Before Firewalls, network security was performed by Access Control
Lists (ACLs) residing on routers.

Application Security

Application security denotes the security precautionary measures utilized at the application
level to prevent the stealing or capturing of data or code inside the application. It also includes
the security measurements made during the advancement and design of applications, as well as
techniques and methods for protecting the applications whenever.

Wireless Security

Wireless networks are less secure than wired ones. If not properly secured, setting up a wireless
LAN can be like having Ethernet ports available everywhere, even in places like parking lots.
To prevent attacks and keep your wireless network safe, you need dedicated products designed
to protect it from exploits and unauthorized access.

Web Security

A web security solution manages how your staff uses the internet, blocks threats from websites,
and stops access to harmful sites. It safeguards your web gateway either onsite or in the cloud.
Additionally, “web security” involves measures taken to protect your own website from
potential attacks and vulnerabilities.

Mobile Device Security

Cybercriminals are focusing more on mobile devices and apps. In the next three years, about
90 percent of IT organizations might allow corporate applications on personal mobile devices.
It’s crucial to control which devices can connect to your network and set up their connections
securely to protect network traffic from unauthorized access.

Industrial Network Security

As industries digitize their operations, the closer integration of IT, cloud services, and industrial
networks exposes Industrial Control Systems (ICS) to cyber threats. To safeguard against these
risks, it’s crucial to have complete visibility into your Operational Technology (OT) security
status. This involves segmenting the industrial network and providing detailed information
about OT devices and their behaviors to IT security tools. This approach helps in effectively
monitoring and protecting critical industrial systems from potential cyber attacks.

VPN Security

A virtual private network (VPN) encrypts the connection between a device and a network,
usually over the internet. A remote-access VPN commonly uses IPsec or Secure Sockets
Layer (SSL) to verify and secure the communication between the device and the network. This
encryption ensures that data transmitted between the device and the network remains private
and secure from unauthorized access.

Benefits of Network Security

Network Security has several benefits, some of which are mentioned below:

• Network Security helps in protecting clients’ information and data which ensures
reliable access and helps in protecting the data from cyber threats.

• Network Security protects the organization from heavy losses that may have occurred
from data loss or any security incident.

• It overall protects the reputation of the organization as it protects the data and
confidential items.

Advantages of Network Security

• Protection from Unauthorized Access: Network security measures such as firewalls

and authentication systems prevent unauthorized users from accessing sensitive
information or disrupting network operations.

• Data Confidentiality: Encryption technologies ensure that data transmitted over the
network remains confidential and cannot be intercepted by unauthorized parties.

• Prevention of Malware and Viruses: Network security solutions like antivirus

software and intrusion detection systems (IDS) detect and block malware, viruses, and
other malicious threats before they can infect systems.
• Secure Remote Access: Virtual private networks (VPNs) and other secure remote
access methods enable employees to work remotely without compromising the security
of the organization’s network and data.

Disadvantages of Network Security

• Complexity and Management Overhead: Implementing and managing network

security measures such as firewalls, encryption, and intrusion detection systems (IDS)
can be complex and require specialized knowledge and resources.

• Cost: Effective network security often requires investment in hardware, software, and
skilled personnel, which can be expensive for organizations, especially smaller ones.

• Privacy Concerns: Some network security measures, such as deep packet inspection
and monitoring, may raise privacy concerns among users and stakeholders, requiring
careful balancing of security needs with individual privacy rights.
E-Commerce Concepts Page | 1.33

including order placement, order status updates, order tracking and coordination
with logistics for delivery.
 Inventory Management: The inventory management system tracks the availability
of products and services, updating the stock levels in real-time, and ensuring that
customers are not sold items that are out of stock.
 Mobile Analytics: Mobile analytics tools provide valuable insights into user
behavior, preferences, and purchasing patterns. This information can be used to
optimize the m-commerce platform, enhance user experience, and refine marketing
strategies.
 Security and Encryption: Security measures, such as data encryption, secure socket
layers (SSL), and two-factor authentication, are vital to protect sensitive user
information and ensure secure transactions.
 Customer Support: This component offers customer support features like- chat
support, FAQs, and contact forms, allowing users to seek assistance or resolve issues
related to their purchases.
 Push Notifications and Alerts: The system can utilize push notifications to inform
users about new products, special offers, order updates, and other relevant
information.
 Mobile Marketing and Promotions: The system should support targeted marketing
and promotional activities, allowing businesses to reach their mobile customers with
personalized offers and campaigns.
 Feedback and Reviews: This functionality enables users to provide feedback,
ratings, and reviews for products and services, helping other customers make
informed decisions.
The M-commerce Information System Functional Model serves as a blueprint for
designing, developing, and operating an effective and efficient mobile commerce platform,
ensuring a seamless and engaging experience for mobile users while supporting the
business's growth and success in the mobile marketplace.

Short Answer Questions

Q.1. What is E-Commerce?
Ans: E-Commerce stands for ‘Electronic Commerce’. It refers to buying and selling of
goods, products, or services over the internet. E-Commerce is a methodology of
Page | 1.34 E-Commerce Concepts

modern business, which addresses the need of business organizations, vendors and
customers to reduce cost and improve the quality of goods and services while
increasing the speed of delivery.
The term ‘e-Commerce’ also comprises other activities including- online auctions,
internet banking, payment gateways, and online ticketing.
Some popular e-Commerce platforms are: Amazon, Flipkart, Myntra, IndiaMART,
and Snapdeal.
Q.2. Discuss the major objectives of E-Commerce.
Ans: The various objectives that businesses typically strive to accomplish through e-
commerce are:
 To provide online customers with quick delivery of products or services.
 To gain access to a worldwide market.
 To increase sales in existing market and opening new market.
 To develop business opportunities over the internet.
 To improve productivity and competitiveness.
 To improve customer experience and satisfaction.
 To offer more customizable products.
 To keep the virtual shop open 24x7.
Q.3. What is Mobile Commerce?
Or
What is M-Commerce?
Ans: Mobile commerce, also known as m-commerce, is defined as the process of
conducting commercial transactions such as online banking, paying bills or making
purchases using portable mobile devices like- mobile phones or tablets online.
You can’t use your laptop or PC (Personal Computer) everywhere, but you can use
your mobile phones easily. You can do online shopping while travelling, transfer
money easily with the help of mobile phones. Thus, this wireless solution is very
much helpful and rising day by day.
Q.4. Explain the types of M-Commerce.
Or
Define the following in M-Commerce:
(a) Mobile Shopping
E-Commerce Concepts Page | 1.35

(b) Mobile Banking

(c) Mobile Payment
Ans: M-commerce can be categorized by function as:
(a) Mobile Shopping
Mobile shopping allows a customer to purchase a product online from a mobile
device using an application such as Amazon or Flipkart.
(b) Mobile Banking
Mobile banking is a service provided by a bank or other financial institution that
allows its customers to conduct financial transactions remotely using a mobile
device such as a smartphone or tablet. Unlike the related internet banking it uses
software, usually called an app, provided by the financial institution for the purpose.
Mobile banking is dependent on the availability of an internet or data connection to
the mobile device.
(c) Mobile Payment
Mobile payment is a money payment made for a product or service through a
mobile phone. Mobile payment technology can also be used to instantly send money
to friends or family members. Digital wallets like- Paytm, Google Pay, etc. allow a
customer to make payments without swiping a card or paying with physical cash.
Q.5. List the key benefits of M-Commerce for Business.
Ans: The key benefits of M-Commerce for Business are listed below:
 Ease of Access
 Marketing
 Fast Transactions
 Wide Range of Products
 Lower Costs
 Higher Productivity
 Attracting New Customers
Q.6. How is ‘Mobile Commerce’ different from ‘E-Commerce’?
Ans: M-commerce is actually just a subset of e-commerce. It is a fast growing sector ofe-
commerce. The only difference is that users don’t require a laptop or PC for this
purpose. They can use portable devices like- smartphones and tablets. This way,
Page | 1.36 E-Commerce Concepts

users can access online shopping sites as well as other online services anywhere and
anytime.
Mobile commerce, which uses wireless technology, offers some additional
advantages over internet-based e-commerce. In e-commerce, the internet provides
information at any time of the day; in m-commerce; the information is available
anytime, anywhere. In e-commerce, the information is available as long as the user is
connected to the internet, i.e. connected to the wired network. If the user is involved
in some other activities, i.e. travelling or doing some offline job, which forces
him/her to become disconnected from the internet, the information becomes
unavailable. M-commerce removes such uncertainties. Wireless networking enables
the user to be connected to the wireless internet even when on the move. This means
that in m-commerce it is possible to stay online anywhere in the world and at any
time of the day. The user can instantly access information with the help of the mobile
device and the wireless network or the Internet, even when he/she is doing other
activities such as travelling or shopping. This helps employees to make spontaneous
decisions, customers to ask questions spontaneously, and business owners to
conduct transactions at any time regardless of their geographic location.
Q.7. Discuss the impact of ‘Wireless Communication Technology’ in Mobile
Commerce.
Ans: Mobile commerce is based on wireless communication technology. Wireless
communication technology has emerged as the new choice of the modern corporate
world. The wireless network has some distinct advantages over traditional wired
networks, which use coaxial, twisted pair, or fibre optic cables to physically connect
two or more computing devices. In wireless networks, data transmission between
computers is facilitated by microwaves, radio waves, or infrared waves. It eliminates
the cumbersome cabling process with bulky cables and significantly reduces labour
and material costs as well as development time. The wireless network technology,
together with the wireless application protocol, forms the backbone of mobile
commerce applications. In various vertical markets such as retail, healthcare,
manufacturing and warehousing, mobile commerce gained acceptance and
increased productivity through the use of mobile devices. The mobile handheld
devices are used to transmit data to centralized hosts in real time over wireless
networks.
Mobile commerce, which uses wireless technology, offers some additional
advantages over internet-based e-commerce. In e-commerce, the internet provides
E-Commerce Concepts Page | 1.37

information at any time of the day; in m-commerce; the information is available

anytime, anywhere. In e-commerce, the information is available as long as the user is
connected to the internet, i.e. connected to the wired network. If the user is involved
in some other activities, i.e. travelling or doing some offline job, which forces
him/her to become disconnected from the internet, the information becomes
unavailable. M-commerce removes such uncertainties. Wireless networking enables
the user to be connected to the wireless internet even when on the move. This means
that in m-commerce it is possible to stay online anywhere in the world and at any
time of the day. The user can instantly access information with the help of the mobile
device and the wireless network or the Internet, even when he/she is doing other
activities such as traveling or shopping. This helps employees to make spontaneous
decisions, customers to ask questions spontaneously, and business owners to
conduct transactions at any time regardless of their geographic location.
Q.8. What are the major challenges of Mobile Commerce?
Ans: The major challenges of mobile commerce are:
 Development of Mobile Devices
 Small Screen Size and Poor Resolution
 Low Speed Processor
 Small Storage Capacity
 Low Power Backup
 Payment Troubles
Q.9. What is Mobile Payment? Compare it with Mobile Shopping.
Ans: Mobile payment is a money payment made for a product or service through a
mobile phone. Mobile payment technology can also be used to instantly send money
to friends or family members. Digital wallets like- Paytm, Google Pay, etc. allow a
customer to make payments without swiping a card or paying with physical cash.
Mobile shopping allows a customer to purchase a product online from a mobile
device using an application such as Amazon or Flipkart.
Q.10. What is ‘e-Business’?
Ans: E-Business (Electronic business) or online business means business transactions that
take place online with the help of the internet. Here, the buyer and the seller don’t
meet personally.
Page | 1.38 E-Commerce Concepts

The scope of e-business is limited to executing core business process of the

organization. These processes would have external interface like- suppliers,
customers, contractors, consultants and so on. The core business processes of the
organization are- procurement, manufacturing, selling, distribution, delivery and
accounting.

Long Answer Questions

Q.1. Define E-Commerce. Discuss some important features of e-Commerce.
Ans: E-Commerce stands for ‘Electronic Commerce’. It refers to buying and selling of
goods, products, or services over the internet. E-Commerce is a methodology of
modern business, which addresses the need of business organizations, vendors and
customers to reduce cost and improve the quality of goods and services while
increasing the speed of delivery.
The term ‘e-Commerce’ also comprises other activities including- online auctions,
internet banking, payment gateways, and online ticketing.
Some popular e-Commerce platforms are: Shopify, Amazon, Flipkart, Myntra,
IndiaMART, and Snapdeal.
Features of E-Commerce:
Some of the features of E-Commerce are as follows:
 Cashless Payment: E-Commerce allows the use of electronic payment. It allows
the transaction from credit cards, debit cards, electronic fund transfer via bank's
website, and other electronic payment methods.
 24x7 Availability: E-Commerce provides 24x7 service availability. It is available
anywhere, anytime.
 Improved Sales: Using e-commerce, orders for the products can be generated
anytime, anywhere without any human intervention. It gives a big boost to
existing sales volumes.
 Advertising and Marketing: E-Commerce helps in good marketing management
of products and services. It helps to increase the reach of advertising of products
and services of businesses.
 Support: E-commerce provides various ways to provide pre-sales and post-sales
assistance to provide better services to customers.
E-Commerce Concepts Page | 1.39

 Improvement in Communication: E-commerce gives faster, efficient and reliable

communication with customers and partners.
 Global Reach: It enables a business to easily reach across geographic boundaries.
Q.2. Compare and contrast ‘Traditional Commerce’ with ‘E-Commerce’.
Or
Explain the difference between ‘Traditional Commerce’ and ‘E-Commerce’.
Ans: The following table depicts the difference between ‘Traditional Commerce’ and ‘E-
Commerce’:

Traditional Commerce E-Commerce

Traditional commerce refers to the E-commerce refers to the commercial

commercial transactions or exchange of transactions or exchange of information,
information, buying or selling buying or selling product/services
product/services from person to person electronically with the help of internet.
without use of internet.

The start-up cost of traditional commerce is The start-up cost of e-commerce is low.
very high.

Traditional commerce is usually carried out E-commerce is carried out by screen to

by face to face. face.

In traditional commerce, processing of In e-commerce, processing of transaction

transaction is manual. is automatic.

In traditional commerce, delivery of products In e-commerce, delivery of products takes

is instant. time.

Its accessibility is for limited time in a day. Its accessibility is 24 x 7. 24 x 7 means "24
hours a day, 7 days a week".

Traditional commerce is done where digital E-commerce is used to save valuable time
network is not reachable. and money.

Traditional commerce is an older method of E-commerce is a newer concept of

business style which comes under traditional business style which comes under e-
business. business.

In traditional commerce, customers can In e-commerce, customers can not inspect

inspect products physically before purchase. products physically before purchase.

Communications of business depends upon In e-Commerce, there is no human

individual skills. intervention.
Page | 1.40 E-Commerce Concepts

Q.3. Compare and contrast ‘E-Commerce’ with ‘M-Commerce’.

Or
Explain the difference between ‘Electronic Commerce’ and ‘Mobile Commerce’.
Ans: The following table depicts the difference between ‘E-Commerce’ and ‘M-Commerce’:

E-Commerce M-Commerce
The process of buying and selling products The process of buying and selling products
or services over the internet by using or services over the internet by using
personal computers or laptops is called as wireless handheld devices (like- mobile
E-commerce. It refers to ‘Electronic phones or tablets) is called as M-commerce.
commerce’. It refers to ‘Mobile Commerce’.
E-commerce activities are performed with M-commerce activities are performed with
the help of desktop computers and the help of mobile devices like-
laptops. smartphones, tablets, PDA’s (Personal
Digital Assistant) etc.
E-commerce is an older concept developed M-commerce is a newer concept developed
in 1970’s. in 1990’s. It is actually a subset ofe-
commerce.
In e-commerce, the use of internet is In case of m-commerce, some activities can
mandatory. be performed without internet also. Like-
Sending SMS to promote a product/service
via. Mobile.
Its reachability is comparatively low than Its reachability is more than that of e-
the m-commerce as it is not so good in commerce only due to the use of mobile
portability. devices.
In e-commerce, location tracking In m-commerce, location tracking
capabilities are limited due to the non- capabilities is so good as mobile apps track
portability of devices. and identify user locations with the help of
GPS technology, Wi-Fi, and so on.
E-commerce fails in push notification. In m-commerce, push notification can be
achieved.
Mobility is high. Users can make Mobility is low. Users can make
transactions everywhere as long as they transactions on their computers and
are connected to the Internet. laptops with limited mobility.
M-commerce is available anyplace you go, For E-commerce, you still need to go to a
even if there is no internet. place where there is internet to access your
online transactions.
E-Commerce Concepts Page | 1.41

Examples of E-commerce include: Amazon, Example of M-commerce include: mobile

Flipkart, Quikr, OLX websites. banking like- Paytm.

Q.4. What are the different e-Commerce business models?

Or
Explain the different business models of e-Commerce with respect to customers
and vendors.
Ans: Nowadays e-commerce has become very popular among the people who want to
buy and sell different things online.
There are basically four main types of e-commerce models that can describe almost
every transaction between Consumers (C) and Businesses (B).
(1) Business to Consumer (B2C)
(2) Business to Business (B2B)
(3) Consumer to Consumer (C2C)
(4) Consumer to Business (C2B)

(1) Business to Consumer (B2C)

In Business-to-Consumer (B2C) e-commerce, the company will sell their goods
and/or services directly to the consumer.
In this type of e-commerce, customers or consumers visit the company’s website and
look at products, pictures and read reviews there. Then they place their order and
the company ships the goods directly to them.

(B2C E-Com m e rce M ode l

)
Page | 1.42 E-Commerce Concepts

Example: An example of B2C e-commerce would be someone buying a pair of shoes

online from Amazon or eBay.

(2) Business to Business (B2B)

In Business-to-Business (B2B) e-commerce, the companies are doing business with
each other. B2B takes place between two businesses where one business provides
services to other business.
In this type of e-commerce, the final consumer is not involved. The online
transactions only involve the manufacturers, wholesalers, retailers etc.
Bus ine s s 1
Bus ine s s Organization

ie s
u ppl
3. S

Bus ine s s 2
2. O rde r
Proce s s ing

1. O rde r

W h ol
e s al
er
W e bs ite

4. Se l
ls

Cus tom e r

(B2B E-Com m e rce Mode l

)
E-Commerce Concepts Page | 1.43

Example: A wholesaler places an order from a company's website (manufacturer)

and after receiving the consignment, sells the end product to the final customer who
comes to buy the product at one of its retail outlets.

(3) Consumer to Consumer (C2C)

In Consumer -to- Consumer (C2C) e-commerce, the consumers are in direct contact
with each other. No company is involved. It helps people sell their personal goods
and assets directly to an interested party. C2C e-commerce takes place between two
consumers where one consumer sells an item through an online auction while the
other consumer purchases the item by offering the highest bid.

(C2C E-Com m e rce Mode l

)

Example: CUSTOMER 1 wants to sell a car, so he/she can place his/her car on a
website like- OLX or eBay, while the CUSTOMER 2 wants to buy that car. So, the
CUSTOMER 2 can contact CUSTOMER 1 and buys the car from him/her.

(4) Consumer to Business (C2B)

This is the reverse of B2C; it is a Consumer to Business.
In Consumer -to- Business (C2B) e-commerce, the consumer provides a good or
some service to the company. In this business model, the consumer creates value,
and the business consumes that value.
Page | 1.44 E-Commerce Concepts

(C2B E-Com m e rce M ode l

)

Example: A customer places some of their services or products on the website. If the
services or products create value for the business organization, then they order these
services or products, but in most cases, services. When the deal is done, they receive
services or products, and the customer receives money.
Note: Freelancing websites like- Fiverr, Freelancer work on C2B business model.
Q.5. What is Mobile Commerce? Discuss the scope of Mobile Commerce.
Ans: Mobile commerce, also known as m-commerce, is defined as the process of
conducting commercial transactions such as online banking, paying bills or making
purchases using portable mobile devices like- mobile phones or tablets online.
You can’t use your laptop or PC (Personal Computer) everywhere, but you can use
your mobile phones easily. You can do online shopping while travelling, transfer
money easily with the help of mobile phones. Thus, this wireless solution is very
much helpful and rising day by day.
Scope of Mobile Commerce:
Mobile commerce provides instant connectivity between mobile users regardless of
their geographic location or time of day. With the tremendous growth of wireless
and mobile technology and the rapid production of cell phones in developing
countries around the world, the scope of m-commerce has expanded many times
over. With the advent of super-fast 4G access technology, which ensures high-speed
data transmission rates in the order of 50Mbps, m-commerce opens up new
perspectives for digital media applications. So, it is now possible for mobile users to
E-Commerce Concepts Page | 1.45

watch their favorite TV programmes or download and view famous movies in their
mobile devices while travelling.
Downloading MP3 music, playing online games or participating in live video
conferencing while in transit have become a reality now. Apart from such
audio/video applications, SMS-based text messaging is widely accepted in day-to-
day business transactions. Whether to display product promos, to announce new
product launches or to give attractive discounts, SMS have become an effective tool
for mobile marketing. SMS-based advertisements have become an integral part of m-
commerce. The role that SMS play in giving instant support to customers in the
event of any kind of product failures or delivery delays cannot be ignored or
downplayed.
Another major application area of m-commerce is in the field of micro payments.
Mobile devices will replace users' debit/credit cards in the near future. The mobile
phone replaces the money in your pocket and offers an affordable, low-risk
alternative to credit / debit cards to pay anytime, anywhere and for anything.

(Scope ofM obil

e Com m e rce )
Page | 1.46 E-Commerce Concepts

In SMS-based transactional payments, the mobile phone is used to send a PIN

(Personal Identification Number) to a bank for authorization purpose. After the
successful verification of the PIN by the bank, the user sends a payment request
through an SMS from his/her mobile to the bank. The payment is done through an
account transfer by the bank and both the payer and payee get an SMS from the
bank regarding the successful completion of the payment. Thus, a completely cash
less payment is made using the mobile phone within 10 to 15 seconds.
Mobile Commerce offers a range of location-based services, such as tracking and
monitoring people / vehicles, identifying or finding the nearest ATMs / banks /
hospitals/ restaurants and local weather / traffic reports.
People tracking can help in criminal investigation where the mobile phone used by a
criminal can be tracked and its location is identified.
Vehicle tracking is used to determine the actual position of the goods to be delivered
and helps in supply chain operation management.
The local traffic and weather report can be created in a local office and delivered to a
user's mobile phone if desired. The local bank / ATM / hospital / restaurant
information can also be delivered to a mobile user at minimal cost.
The scope of mobile commerce is ubiquitous, gradually covering all aspects of the
lives of modern citizens. From mobile banking, mobile browsing and mobile
ticketing to mobile marketing, mobile advertising and mobile computing, mobile
commerce is gradually becoming an integral part of both the corporate world and
the common people.
With the prices of mobile phone decreasing exponentially and the number of
different mobile applications increasing enormously, more and more people will
indulge in m-commerce applications and soon it will become the preferred choice of
the digital business world.
Q.6. Write down the major benefits of Mobile Commerce.
Ans: The main advantage of mobile commerce is that it gives the mobile users instant
connectivity regardless of their geographic location and time of the day. The mobile
user can stay connected to his/her company network and collect information, even
when he/she is in transit and remotely located away from the company installation.
The same light weight mobile device can be used for making business transactions or
making online payments 24 x 7 in a cost-effective way.
E-Commerce Concepts Page | 1.47

The major benefits of mobile commerce are as follows:

 Anytime - Anywhere
Mobile commerce together with wireless communication technology and
wireless broadband internet access, keeps the mobile user connected with the
internet while travelling across the globe. The business information is available
to the mobile user any time of the day and anywhere around the globe. This
anytime/anywhere internet access makes business transactions more flexible and
customer communications more efficient, which in turn improves the
productivity of the company and increases customer satisfaction. The valuable
market information, stock/share prices, inventory position, delivery schedule,
etc. are instantly available at the fingertips. The round the clock (24 X 7) internet
availability benefits many users to conduct business transactions from their
homes or from any other place while on the move and at any convenient time.
Thus m-commerce offers greater mobility and flexibility to mobile users in
performing business transactions using their handheld mobile devices.
 Good Business Opportunities
The number of mobile users is increasing day by day, so through M-Commerce
your business gets large and growing market place for a variety of goods and
services.
 Good Marketing Tool
M-commerce also helps businesses target customers according to their location,
service provider, the type of device they use and various other criteria. This can
be a good marketing tool.
 Process Multiple Orders
Mobile commerce allows businesses to process multiple orders at once. There are
no long checkout lines, and customers can buy products at any time.
 Cost-effective
The costs of transactions using mobile devices are relatively low. The critical
business data, such as reports, photographs, etc. can be captured and transmitted
easily from the mobile devices without involving any bulky expensive
equipment. The customer queries can be attended and support provided
instantly from the mobile device, thus making customer support more
comprehensive. The SMS-based micro payments facilitate bank account transfer
Page | 1.48 E-Commerce Concepts

within a few seconds and at the cost of an SMS. In case of mobile billing, users
can pay for electricity bills, telephone bills, petrol, grocery, etc. through their
mobile phones. The payments made in the mobile phones for such items will
appear as part of their mobile phone bills, thus eliminating the need for a third
party payment mechanism such as, credit cards. This reduces the cost of
payment to a large extent.
 Personalized Service
Mobile commerce offers a number of personalized services to the mobile users
depending on their various requirements and purposes. The digital cellular
technology can monitor the location of user performing mobile transactions.
Knowledge of the user's location may be used to deliver timely and useful
contents such as product availability and discount information to the potential
customer. Timely information, such as flight schedules and flight availability can
be delivered to the user at the last minute. Delivery of time critical as well as
emergency information, SMS-based notifications and alerts can be easily made if
the location of the user is tracked. The location tracking is also utilized in offering
customized services to the user, such as delivery of discount coupons that can be
cashed in and around of the location of the customer. Delivery of regional maps,
driving directions and online directories are also possible if the location of the
mobile user is known. Another major advantage of location tracking is that, in
criminal investigation, the location of the mobile user can be monitored and
recorded as part of the investigation process.
 Savings
Companies try to reach to the consumer directly through M-Commerce, so users
have no need to go far to the store physically and at the end it saves user’s time
and money.
Q.7. Discuss the major limitations of Mobile Commerce.
Ans: Although mobile commerce has some distinctive advantages, such as instant
connectivity and location and time independence over electronic commerce and
offers low cost personalized services to the mobile users, it suffers from some serious
limitations which restrict its use in mainstream business world. The mobile device
limitations, such as small screen size, small memory capacity and lower processor
speed makes it unsuitable for high quality internet graphics applications. The limited
availability of bandwidth to various mobile operators imposes a limitation on the
E-Commerce Concepts Page | 1.49

speed of operation of different mobile commerce applications. The wireless networks

used in mobile commerce are more vulnerable to external hacker attacks compared
to wired networks and stringent security arrangements in the form of encryption
and authentication should be adopted to prevent unwanted intrusions.
The main limitations of mobile commerce are explained in detail below:

(1) Mobile Device Limitations

 Small Screen Size and Poor Resolution
Mobile devices have smaller screen size and poor resolution which makes them
inconvenient for browsing applications. Data entry can be quite difficult using
small combinational keypad that comes with most of the mobile hand held
devices. The wide and high resolution screens in conventional desktops or
laptops used in e-commerce applications offer ease of use in data entry
operations as well as viewing web pages. These larger screens support 1920 X
1080 resolution and 3D graphics display. Although mobile devices offer greater
mobility and flexibility in accessing information, the smaller screen size
restricts the amount of information that could be presented and offers a less
convenient user interface in the form of menu-based scroll-and-click mode of
data entry.
 Small Storage Capacity
The mobile devices do not have large storage space. The storage capacity in
mobile devices is in the order of 32GB to 128 GB compared to 2TB or higher
used in desktops/laptops. So, it is difficult to store large video files in mobile
devices for future use. The mobile application developers must be concerned
about the size of their applications during the development phase.
 Low Speed Processor
Most mobile devices are equipped with low-powered processors with a much
slower processing speed compared to the more sophisticated processors used
in desktops or laptops. Such low speed processors limit the download speed in
most mobile commerce applications. The applications requiring too much
processing power should be avoided as they may become irritably slow due to
low speed processors. Also, keeping the low processor speed in mind, the
mobile websites must be optimized to ensure customer satisfaction.
Unnecessary plug-ins, flash images and animations should be removed to
ensure speed of delivery.
Page | 1.50 E-Commerce Concepts

 Low Power Backup

Mobile devices use batteries as their power supply. Normally, power for a
mobile device lasts up to 2-3 days, depending on the size of the device. After
this time, the battery should be recharged, which puts additional strain on the
user, who has to remember to recharge it from time to time.

(2) Wireless Network Limitations

Mobile commerce depends on wireless networks, which are typically slower than
wired networks. In many cases, wireless networks offer one fourth speed of standard
wired network. Also, most wireless networks are more common in urban areas and
some of the rural areas might not have wireless communication facilities. So online
mobile services may become unavailable in some rural areas, and thus the
popularity of mobile services may be suffered. Unless the mobile device is
compatible with 3G or 4G technology, the applications become sluggish and
unreliable compared to wired network applications. Atmospheric disturbances and
the fading of signals transmitted over wireless networks sometimes cause serious
data errors and can even lead to disconnections.

(3) Bandwidth Restrictions

A major disadvantage of mobile commerce is the bandwidth limitation, which
imposes a limitation on speed of operation in various m-commerce applications.
Wireless networks use frequency spectrum to transmit information across the
network. Regulatory bodies control the use of available frequency spectrum and
allocate the spectrum to various mobile operators. In India, the frequency spectrum
were initially allocated and regulated by Department of Telecommunication (DOT).
Later, the Telecom Regulatory Authority of India (TRAI) was set up to control the
usage of frequency spectrum. The limited availability of bandwidth to various
mobile operators in turn restricts the data rate in mobile commerce applications.

(4) Security Issues

Another concern that is often raised in connection with mobile commerce is the
security issue. Mobile devices are more vulnerable to theft, loss and mishandling.
Special care must be taken to ensure that the security and privacy of the mobile
phone customer are not compromised if a mobile device is lost. This includes that
sensitive information is not stored on the mobile devices and that the PIN /
password can be changed / blocked quickly and easily if necessary.
E-Commerce Concepts Page | 1.51

Mobile commerce employs public wireless networks for transmission of signals

which can be easily intercepted by hackers for capturing/altering stream of data
travelling through the wireless medium. In wired networks, in order to gain access,
the intruder has to gain physical access to the wired infrastructure. In wireless
networks, anyone with the ability to receive signal in a mobile device can gain access
to the network. In order to protect the wireless network from unwanted users,
various encryption and authentication techniques should be employed.
Authentication of mobile devices prior to carrying out any financial transaction is
another important issue. The Subscriber Identity Module (SIM) stores the subscriber
identity in the form of cryptographic keys. The authentication server of the wireless
network stores the matching keys and verifies the user identity prior to any
transaction. While it is much easier to intercept signals over wireless networks, the
encryption and authentication mechanism makes it difficult for the unwanted user to
decrypt.
Q.8. Explain the Mobile Commerce Framework in detail.
Ans: As m-commerce provides mobility for busy professionals, more and more people are
tending to access the Internet on their mobile phones. The day-to-day functioning of
individuals as well as business corporations is being transformed to mobile
applications and is embedded in mobile devices. The mobile network operators have
started providing Value-Added Services (VAS) that supports the new concepts of
anytime anywhere computing. Accordingly, a new mobile business model has
emerged that is based on a joint distribution of sales through sales in the respective
channels. In mobile retail, for example, diverse mobile applications are being
developed that enable the multi-channel retailer to carry out key functions such as
mobile promotions, mobile payment, product information display, order
management, catalogue management, create and display shopping lists, loyalty
programs and other value-added services. Similarly, in the travel industry, location-
based tourism, mobile ticketing, navigation guidance and the provision of local
weather and traffic information lead to new opportunities for generating sales. In
order to make these value-added services work efficiently, and in a cost-effective
manner, perfect collaboration between various network providers, technology
providers and application developers is required. In order to integrate different
mobile services, applications and technologies in a well-coordinated and controlled
architecture, a mobile commerce framework needs to be developed. The purpose of
the framework is to develop a structured integration of mobile services, applications
Page | 1.52 E-Commerce Concepts

and technology resources in order to provide a diverse range of value-added

services in various industrial sectors while reducing operating costs and improving
efficiency in order to attract the end-user population.
The mobile commerce framework consists of the FOUR basic building blocks as
follows:
(1) Content Management (2) Technology Infrastructure
(3) Application Development (4) Business Service Infrastructure

Content Management
[Creation, Distribution and Management of Digital Contents]

Business Service Mobile Application

Infrastructure Development
 Payment Service  Java ME
 Locational Search Facility Mobile Commerce  Android
 Security Arrangements  Apple iOS
 Back End-Support  Objective C
 HTML5

Technology Infrastructure
Wireless Networks, Wireless Application Protocol (WAP)
Security Protocols, WML, Mobile Browsers

(M obil
e Com m e rce Fram e w ork )

(I) Content Management

This component deals with the creation, distribution and management of a wide
variety of media-rich digital content that can be browsed through the small screens
of mobile devices.
The digital content is used in conducting various business transactions such as
buying and selling goods, making online payments, promoting products and
providing online customer support. An important part of content management is the
ability to track different content providers and to maintain and manage the
relationships between them. The security and authenticity of the content must be
guaranteed and the access control mechanism must be provided to prevent misuse of
the document by unwanted users. The content distribution, rights management and
clearing financial settlements, all come under the content management module.
E-Commerce Concepts Page | 1.53

(II) Technology Infrastructure

This component deals with the distribution of digital contents and transaction details
over wireless communication networks to customer locations or other business
installations. The wireless network infrastructure forms the basis of the mobile
commerce framework as it fulfils the basic requirements of data transmission
between different business partners when carrying out any business transaction.
The technology infrastructure includes wireless communication technology, Wireless
Application Protocol (WAP) and mobile security technology. These technologies
need to support digital content distribution, mobile application development and
distribution and also provide a secure technological platform for mobile billing and
prepaid services through the use of mobile Virtual Private Networks (VPN).
(III) Application Development
The application development component of mobile commerce framework deals with
the diverse range of mobile commerce applications. The main purpose of these
mobile applications is to make the product information available to the end users
and also to enable them to conduct mobile business transactions. There are four main
categories of mobile applications, namely information applications, communication
applications, entertainment applications, and commerce applications. Several mobile
applications, such as mobile ticketing, mobile banking, mobile advertising, mobile
office applications, etc. fall under these categories. These applications support
important business functionalities in the respective industries and are intended to
generate higher sales and reduce costs. Sometimes multiple applications are
combined to provide an aggregated service, resulting in a further cost reduction.
With the rapid development of various emerging mobile technologies, application
development is going through an evolutionary stage. In order to meet the
requirements of today's rapidly evolving markets, the mobile applications must be
developed in an innovative manner so that it allows the service provider to quickly
address the growing demands of the market and also at the same time offer more
profitability and greater cost reduction.
(IV) Business Service Infrastructure
The business service infrastructure forms the backbone of the mobile commerce
framework. It supports the back office functions such as payment services, location
and search functions as well as security measures of the mobile commerce systems.
The production and fulfilment of these services are beyond the capabilities of
Page | 1.54 E-Commerce Concepts

traditional telecommunications service providers. These services are managed and

provided by some third party providers who have the ability and experience to
provide such functions. They maintain the necessary infrastructure to support secure
financial transactions in mobile commerce environments and also provide back-end
support for search and other facilities. Such back office systems should be flexible
enough and also be able to provide new services quickly. They have a direct impact
on the end-user experience and have the greatest impact on the success or failure of
the service provider. With the help of such back office infrastructures, mobile service
providers can avoid upfront investments in IT, and these managed services also offer
service providers the opportunity to switch quickly to the newer technological
environment without significant investments.
Above four components are the four pillars of mobile commerce framework and
allm-commerce activities revolve around them. Whenever a mobile user tends to
download MP3 music or a latest movie in his/her mobile device, sends an SMS
requesting online payment to a bank, submits online order form requesting purchase
in a mobile browser or books a mobile airline ticket, he/she is indulging in either or
all four of the above mobile commerce framework components. In order to cope with
the dynamic nature of the modern day lifestyle, people are demanding more
mobility in accessing their business applications. A properly integrated and well-
coordinated mobile commerce framework needs to be developed in order to provide
easy-to-use and secure mobile services to end customers. The main purpose of a
structured and balanced mobile commerce framework is to enable businesses to
adapt quickly to the latest mobile technologies and ensure customer loyalty by
providing them improved and enhanced services in sync with the growing market
demands.
Q.9. Write about M-Commerce Business Models.
Or
Explain Mobile Commerce Business Models in detail.
Ans: A business model determines the path or process through which a business
organization can achieve some profit. It shows how an organization can make an
investment, add some value to the investment, get a finished product or service, and
generate income by selling the product or service. The income generated from the
sale must exceed the operating costs for the company to make a profit. Business
models specify the mechanism for generating profit margins and maintaining them
in the value chain. Thus, business models help managers with the strategic planning
E-Commerce Concepts Page | 1.55

and formulation of the entire business strategy of the organization. E-commerce has
some traditional business models that are widely used by all of the major e-
commerce providers around the world. These include the dealer model, broker
model, service provider model, advertiser model, etc. Mobile commerce business
models differ from electronic commerce because of their fundamental differences in
operation and technology. Since mobile commerce gives users additional mobility,
the business models also reflect the nature of mobility. The four most important
services of mobile commerce are payment services, mobile advertising, mobile
shopping and mobile entertainment. Accordingly, the business models of mobile
commerce also revolve around these four applications.
The four major mobile commerce business models are described below:
(1) Payment Model
In this model, mobile payment service providers offer mobile payment services that
enable users to conduct cashless payment transactions including bank transactions,
stock trading, tax / bill payments, and ticket or other retail purchases using a credit /
debit card or bank PIN. The payment service providers work with banks (or other
financial institutions) and / or mobile network operators and accordingly receive a
bank-controlled mobile payment model or an operator-controlled mobile payment
model. The payment service provider charges a certain percentage fee for each
payment transaction made using the payment application. Alternatively, the user
can pay a nominal monthly subscription fee to the payment service provider and can
use the service as and when required.
(2) Advertiser Model
This model is an extension of traditional e-commerce advertiser model and provides
mobile websites that can be viewed by mobile users on their portable mobile devices.
Advertising companies can display their advertising messages on the website and
pay a rental fee to the hosting website for displaying their messages. These mobile
advertising websites usually offer users some basic services such as email services,
search engines, news services or social networking services, and publish promotional
messages on these websites for wider reach. The advertisements often come with
purchase buttons that allow users to purchase the product directly from their mobile
devices. The mobile payment service is also provided to facilitate mobile purchase
directly from the advertising websites. The advertising companies pay a fixed fee to
the advertising website for the presentation of their advertising messages.
Page | 1.56 E-Commerce Concepts

Additional revenue is generated for every purchase transaction the user makes
through the website
(3) Shopping Model
This model is similar to the e-commerce retailer model, in which retailers create
mobile websites to display their range of products on customers' mobile devices. The
mobile users can browse the mobile websites on their WAP enabled mobile screens
and select and purchase any product of their choice. Mobile payment option is also
provided in the website so that the users can make mobile payment for the
purchased product and complete the deal even while in transit or far away from the
actual store location. Thus, shopping model allows retailers to generate additional
revenues through mobile shopping and can improve their profit margins.
(4) Content Provider Model
In this model, mobile service providers offer a variety of entertainment content such
as breaking news, weather forecast, traffic information, music, mobile games, TV
shows, video content, movies, etc., which can be downloaded to users' mobile
devices. Network operators are connected to various content providers and offer
mobile customers both subscription-based services and pay-per-use services.
Location-based services, such as map-based navigational services, discount coupons
offered in local retail stores or restaurants, news of local events, etc. are also
delivered in customer mobile devices. The revenue is generated through
subscription fees (for news, traffic/weather updates, movies, and games), usage fees
(TV shows, videos, games etc.) or data download fees (for e-mails, e-books, etc.).
Various media houses, press agencies or content aggregators follow this model in
order to generate additional income via the mobile channel.
Q.10. What is the impact of M-Commerce?
Ans: In general, mobile commerce is viewed as an extension of traditional internet-based
e-commerce. However, because the number of mobile device owners is far larger
than that of internet users, mobile commerce has a huge impact on the daily
activities of both customers and business owners.
By providing instant internet connectivity and greater mobility to billions of mobile
users, m-commerce is redefining the relationship between customers and providers
of goods and services. It is predicted that in the near future mobile commerce will
significantly influence the marketing orientation of almost all major industrial
sectors and thus change the general market dynamics.
E-Commerce Concepts Page | 1.57

In addition to providing mobility and location tracking for users, m-commerce

applications are able to achieve a high level of personalization and offer interaction
with the individual customer. In a highly interactive environment, personal profiles,
product preferences, home and office locations, payment details, etc. can be captured
directly from the customer's mobile devices to create an accurate and personalized
database. Conversational advertising can be delivered directly to the mobile phone
from a brand to describe the benefits of the product. This is an emerging concept
where the mobile user can sign up to receive product information from a brand by
providing the company with the mobile phone number. By using the location
tracking of M-Commerce, special customer zones can be created, which are
identified by specific customers with different product preferences. The customers of
a zone can be dynamically informed about various discounts and offers in the local
shops. Knowledge of customer numbers and preferences in a zone will help the
suppliers to estimate the demand for a particular product, and also let the customers
be informed instantly about any discounts/price reduction offered in nearby stores.
The popularity of mobile entertainment is growing rapidly. These include mobile
phone gambling, mobile collaborative games, mobile sport video and mobile
television. With the rapid development of sophisticated mobile applications, the
mobile game business is growing rapidly. Developments in technologies such as
mobile video sequencing, mobile video transcoding and mobile video
communication play a key role in the success factor of the mobile entertainment
industry.
Similarly, in healthcare, mobile medical imaging is enabled through the use of a
3G/4G wireless network. In the education industry, mobile learning is being
introduced in the form of SMS or text messages. With the help of mobile learning or
M-learning, people can save their time, energy and money, they can learn at home,
office, and even during travelling.
With the introduction of newer display technologies, such as electronic paper, liquid
crystal display and digital paper, the mobile electronic readers or e-books have
become commonplace. A large number of mobile users have started carrying e-
readers to download online books or online newspapers while travelling.
The impact of m-commerce is universal and constantly expanding. With the cost of
mobile devices going down and introduction of newer and powerful technologies,
more and more people are indulging in numerous mobile applications and
eventually m-commerce is becoming the preferred tool for conducting business
transactions on the go.
Page | 1.58 E-Commerce Concepts

1. What is Mobile Commerce? Describe how business transactions are performed

through mobile devices.
2. Discuss the benefits and limitations of mobile commerce.
3. Explain the various categories of mobile payment.
4. List the advantages of e-Commerce to business.
5. Discuss the benefits of m-Commerce to customers.
6. List the devices commonly used for mobile commerce.
7. What is the future of mobile commerce in India? Comment.
8. What are the various categories of mobile payment? Describe card-based mobile
payment.

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