MIS and E-Business

E-commerce has unique features that give it advantages over traditional commerce.

1. Ubiquity. E-commerce is available everywhere and at all times: at home, at work, on a mobile phone, 24 hours a day. In traditional commerce, a customer must go to a physical market at fixed opening hours. Ubiquity reduces transaction costs (travel time, effort) and widens the market beyond geography.

2. Richness. Richness is the complexity and content of a message. Traditional commerce offers rich face-to-face interaction but reaches few people. E-commerce can deliver rich video, audio and text messages to a large audience at once, combining the richness of a salesperson with the reach of mass media.

3. Information density. E-commerce greatly increases the quantity and quality of information available to all market participants: customers can compare prices and features instantly, while merchants learn about customers' behaviour and can offer personalised prices and products. Price and cost transparency increases and information asymmetry falls.

Together with global reach, interactivity and personalisation, these properties lower costs, widen choice and improve customer service compared with traditional commerce.

E-commerce types differ in who sells to whom: business to consumer (B2C, retail to households), business to business (B2B, supply to retailers and resellers) and consumer to consumer (C2C).

B2C is the largest in customer numbers, B2B is the largest in transaction value, and C2C depends on the platform providing trust and payment support.

Information superhighway. It is a high-speed, high-capacity network of communication links (the Internet and its backbone of fibre optic, satellite and wireless networks) that carries voice, data, text, images and video between people and organizations.

Role in e-commerce

1. Provides the infrastructure over which online transactions, product information and orders are transmitted.
2. Gives global reach to merchants and customers at low cost.
3. Enables fast and reliable delivery of digital goods, services and content.
4. Supports electronic payments, EDI and secure transactions.
5. Allows interactive multimedia marketing, advertising and customer support.
6. Enables online access to information for decision making and market research.

Components of the information superhighway

1. Transport (network) infrastructure: telephone lines, cable, fibre optic, satellite, wireless and mobile networks.
2. Information delivery / multimedia content and publishing infrastructure: web servers, databases and content providers.
3. Messaging and information distribution infrastructure: email, EDI, file transfer and HTTP.
4. Common business services infrastructure: security, authentication, electronic payment and directories.
5. Access equipment: computers, mobile phones, set-top boxes and modems.
6. Interface layer and applications: browsers, apps and user interfaces.
7. Public policy and technical standards: laws, protocols (TCP/IP) and regulation.

International information system (IIS) is an information system that supports the business activities of an organization operating in more than one country. It collects, processes and shares data across national borders so that headquarters, subsidiaries, suppliers and customers in different countries can work as one coordinated business. It must deal with differences in language, currency, law, culture, time zone and telecommunication infrastructure.

Outsourcing means hiring an external company (a vendor) to perform business functions or IT services that were earlier done in-house, such as payroll, software development, call centre or data centre operation. The work is governed by a contract and service level agreement (SLA).

• Benefits: lower cost, access to expert skills, focus on core business, scalability.
• Risks: loss of control, data security and confidentiality problems, dependence on the vendor, hidden costs.

Offshoring means moving a business process or work to another country, mainly to take advantage of cheaper labour, skilled manpower or favourable tax and time-zone conditions. The work may be done by the company's own foreign subsidiary (captive offshoring) or by an outside vendor (offshore outsourcing).

• Example: a US firm having its software tested by a team in Nepal or India.

Difference: outsourcing is about who does the work (an external party), whereas offshoring is about where the work is done (another country). A task can be outsourced domestically, offshored to an own subsidiary, or both outsourced and offshored. In an international information system, both are used to cut cost, operate 24 hours across time zones and use global talent, but they require strong security, communication and quality control.

Availability means that systems, data and services are accessible to authorized users whenever they are needed. A website that is down because of a denial-of-service attack or hardware failure violates availability.

Authentication is the process of verifying the identity of a user, device or server before granting access, i.e. proving "you are who you claim to be".

Authorization is deciding what an authenticated user is allowed to do (which resources, which operations). For example, a customer can view his own orders but only an administrator can change prices.

Enforcing them in e-commerce security

• Availability: redundant servers and load balancers, backups and disaster recovery, UPS and failover sites, firewalls and intrusion prevention systems, anti-DDoS services, regular patching and monitoring.
• Authentication: username and strong password, one-time passwords (OTP) by SMS or email, two-factor/multi-factor authentication, biometrics, digital certificates and digital signatures, SSL/TLS server certificates to prove the merchant's identity, CAPTCHA.
• Authorization: role-based access control (RBAC), access control lists, least-privilege principle, session timeouts, permission checks on every request, and audit logs of user actions.

Together with confidentiality and integrity, these three provide a secure environment for online buyers and sellers.

E-check (electronic check) is the electronic version of a paper cheque. It is a digital payment instruction in which the payer authorizes the transfer of money from his bank account to the payee, using the existing banking cheque-clearing network (such as ACH). It carries the same information as a paper cheque (payer, payee, amount, date, bank account) but is digitally signed and encrypted, so it is secure and fast.

Working mechanism

1. The customer opens an account with a bank that supports e-checks and obtains a digital certificate and a private key for signing.
2. After choosing goods on the merchant's site, the customer fills in/ issues the e-check, digitally signs it with his private key and attaches his bank's digital certificate.
3. The e-check is sent to the merchant by the website or email, encrypted for security.
4. The merchant verifies the signature and certificate, then endorses the check (digital endorsement) and deposits it with its own bank.
5. The merchant's bank forwards it through the clearing house (e.g. ACH) to the customer's bank.
6. The customer's bank verifies the signature and available balance, debits the payer's account and transfers the amount to the merchant's bank, which credits the merchant.
7. Confirmation is sent to the merchant and customer.

Advantages: cheaper than paper cheques, faster clearing, secure by digital signatures, easy to automate and record. Limitation: needs bank participation and infrastructure; settlement is slower than card or wallet payments.

A well designed e-commerce website attracts visitors, builds trust and turns them into customers. The main design criteria are:

1. Ease of use and navigation: clear menus, search box, breadcrumbs, categories and filters so users find products within a few clicks.
2. Fast loading: optimized images, caching, compact code and good hosting; slow pages cause abandoned carts.
3. Visual appeal and consistency: attractive layout, consistent colours, fonts and logo reflecting the brand; good white space and quality product photos.
4. Quality content: accurate product descriptions, prices, specifications, reviews, FAQs and policies.
5. Mobile responsiveness: the site should adapt to phones, tablets and desktops.
6. Security and trust: HTTPS/SSL, secure payment gateway, privacy policy, trust seals and clear return and refund policy.
7. Simple checkout: few steps, guest checkout, multiple payment options (cards, wallets, cash on delivery), order tracking.
8. Reliability and availability: the site must be up all the time and handle peak traffic.
9. Accessibility and language: readable fonts, alt text for images, support for local language (Nepali) where needed.
10. SEO and analytics friendliness: clean URLs, meta tags, sitemap, tracking of user behaviour.
11. Customer support and interactivity: contact details, live chat, feedback and personalization.
12. Scalability and maintainability: easy to add products, features and integrate with inventory and logistics systems.

Wireless Application Protocol (WAP) is an open standard (protocol suite) that allows mobile phones and other wireless devices with small screens, limited memory and low bandwidth to access internet content and services. Pages are written in WML (Wireless Markup Language) or XHTML Mobile Profile.

How it works

1. The user requests a URL from the WAP-enabled device (client) using its micro-browser.
2. The request is sent over the wireless network (GSM, GPRS, etc.) in encoded WAP form to the WAP gateway.
3. The gateway translates the WAP request into a normal HTTP request and sends it to the origin web server over the internet.
4. The web server returns WML/HTML content.
5. The gateway compiles/compresses the content into compact binary form and sends it back to the device.
6. The micro-browser interprets and displays the page.

Layered architecture of WAP

1. Application layer (WAE – Wireless Application Environment): the environment for applications and content, including micro-browser, WML, WMLScript and telephony interfaces.
2. Session layer (WSP – Wireless Session Protocol): manages sessions between client and server, supporting connection-oriented and connectionless services, suspend/resume.
3. Transaction layer (WTP – Wireless Transaction Protocol): provides lightweight, reliable request/response transactions over unreliable bearers.
4. Security layer (WTLS – Wireless Transport Layer Security): gives privacy, data integrity and authentication, similar to SSL/TLS but lighter.
5. Transport layer (WDP – Wireless Datagram Protocol): gives a consistent datagram interface to upper layers over different bearers, like UDP (with the Wireless Control Message Protocol for errors).
6. Bearer layer: the underlying wireless networks such as SMS, GSM, CDMA, GPRS and 3G.

The layering makes WAP independent of the network technology and lets each layer be used separately by other services.

Importance of web content in e-commerce

Web content is everything a customer sees or reads on the site. Since customers cannot touch the product, content is the "shop assistant" of the online store. It informs buyers, builds trust and credibility, supports search engine ranking (SEO), reduces support queries, creates brand identity and directly influences conversion and sales.

Types of web content

• Textual content: product descriptions, specifications, policies, FAQs, blogs and articles. Example: a detailed laptop specification table.
• Images and graphics: product photos, zoom views, banners, infographics. Example: multi-angle photos of a shoe.
• Audio/video: demonstration videos, unboxing, tutorials, podcasts. Example: video showing how a blender works.
• User generated content: ratings, reviews, comments, Q&A. Example: customer reviews on Daraz.
• Interactive content: calculators, product configurators, size guides, live chat, 360-degree views, quizzes.
• Dynamic/personalized content: recommendations, recently viewed items, offers based on the user's history.
• Downloadable content: catalogues, user manuals, e-books, coupons.

Cross-selling, up-selling and promotions through web content

• Cross-selling (suggesting related products): "Customers who bought this also bought", "Frequently bought together" showing a phone cover and screen guard on a mobile phone page.
• Up-selling (suggesting a higher-priced or better version): comparison tables and banners such as "Upgrade to 256 GB for only Rs 3,000 more" or premium-plan highlights.
• Promotions: homepage banners, flash sale countdowns, discount coupons, free-shipping messages, bundle offers, festival (Dashain/Tihar) campaigns, and personalized email or pop-up offers.

Properly placed, relevant and well-written content therefore raises average order value and customer retention.

E-commerce systems face threats such as hacking, malware, phishing, denial-of-service, data theft and fraud. Security needs a defence-in-depth strategy with several layers:

1. Security policy and risk assessment: identify assets, threats and vulnerabilities; define who may access what; train employees and keep an incident-response plan.
2. Access control and authentication: strong passwords, multi-factor authentication, role-based authorization, least privilege, biometric or token devices, account lockout.
3. Encryption: use SSL/TLS (HTTPS) for data in transit, encryption of stored data (card numbers, passwords hashed with salt), and symmetric/asymmetric cryptography.
4. Digital signatures and certificates: ensure integrity, authenticity and non-repudiation of messages and transactions, using a PKI and certification authority.
5. Firewalls: packet filtering, application-level firewalls and a DMZ separating the public web server from the internal network.
6. Intrusion detection/prevention systems (IDS/IPS): monitor traffic for suspicious patterns and block attacks; web application firewall (WAF) against SQL injection and XSS.
7. Anti-malware and patching: antivirus, anti-spyware, regular updates of OS, server software and plug-ins.
8. Secure payment mechanisms: PCI-DSS compliance, tokenization, 3-D Secure/OTP, secure payment gateways, fraud detection systems.
9. Availability protection: redundant servers, load balancing, DDoS mitigation, backups, disaster recovery and business continuity plans.
10. Secure coding and testing: input validation, parameterized queries, regular vulnerability scans and penetration testing.
11. Monitoring, logging and auditing: keep logs, review them and run periodic security audits.
12. Legal and physical measures: cyber laws (Electronic Transactions Act), physical protection of data centres, and customer awareness to avoid phishing.

Using preventive, detective and corrective controls together greatly reduces the chance and impact of attacks.

C2C (Consumer-to-Consumer) e-commerce: individuals sell goods or services directly to other individuals, usually through a third-party platform that provides the marketplace, listing, communication and sometimes payment services. The platform earns from commissions, listing fees or advertisements. Typical activities: classified ads, auctions, used-goods trading, peer-to-peer services.

• Examples: eBay, OLX, Hamrobazar, Facebook Marketplace.
• Features: low cost, wide reach, trust handled by ratings/reviews; risks include fraud and quality uncertainty.

B2B (Business-to-Business) e-commerce: transactions take place between businesses, such as manufacturer to wholesaler, wholesaler to retailer or supplier to manufacturer. Orders are usually large, with negotiated prices, contracts, credit terms and integration with ERP/EDI systems. Models include supplier portals, buyer-oriented marketplaces, and public B2B exchanges.

• Examples: Alibaba, IndiaMART, Dell selling to companies, Ariba procurement, a bakery buying flour online from a mill.
• Benefits: reduced procurement cost, faster order processing, automated supply chain, wider supplier choice.

Key difference: C2C connects individuals for small, occasional trades; B2B connects firms for high-volume, repeated, contract-based trade, and B2B's total value is far larger.

M-Commerce (mobile commerce) is the buying and selling of goods and services, and the conduct of financial and information transactions, using wireless handheld devices such as mobile phones and tablets over wireless networks. Examples: mobile banking, eSewa/Khalti payments, mobile ticketing, ordering via apps like Pathao or Daraz.

Benefits for organizations

• Reach customers anywhere, anytime and a bigger customer base.
• Lower marketing cost through SMS, push notifications and location-based offers.
• Faster order handling and payment, better customer engagement and loyalty.
• Access to personal and location data for targeted services.
• Improved employee productivity (field staff accessing data on the move).

Benefits for individuals

• Ubiquity and convenience: shopping, banking and bill payment at any time and place.
• Personalized, instant information and services.
• Saves time and travel cost; easy comparison of prices.
• Simple payment by wallets, QR and mobile banking.
• Entertainment, ticketing and communication in a single device.

Benefits for society

• Financial inclusion of people without bank branches nearby, especially in rural areas.
• Reduced travel and paper use, thus less pollution.
• Growth of jobs and new businesses (app developers, delivery, digital services).
• Faster delivery of government and public services (e-governance, emergency alerts).
• Supports cashless economy and transparency.

Wireless communication is the transfer of information between two or more points that are not connected by an electrical conductor (wire), using electromagnetic waves such as radio, microwave or infrared. Examples: mobile telephony, Wi-Fi, Bluetooth and satellite.

UMTS vs LTE

Enterprise applications are large integrated software systems that coordinate business processes across departments and with partners, so that information flows seamlessly through the whole organization. Main types and their uses:

1. Enterprise Resource Planning (ERP): integrates finance, accounting, human resources, manufacturing, inventory, sales and procurement on one database. Used to avoid duplicate data, give managers a real-time view of the business and standardize processes.
2. Supply Chain Management (SCM): coordinates suppliers, manufacturers, warehouses and distributors to plan demand, purchasing, production and delivery, reducing inventory and delays.
3. Customer Relationship Management (CRM): manages all customer interactions in sales, marketing and service, helping to retain customers, personalize offers and increase revenue.
4. Knowledge Management Systems (KMS): collect, store and share expertise and documents so employees can reuse organizational knowledge.
5. Enterprise collaboration systems: email, intranet, messaging and workflow tools.

Benefits in organizations: better coordination and communication, elimination of data redundancy, faster decisions through accurate real-time information, lower operating cost, improved customer service, easier regulatory reporting and support for global operations. Their challenges are high cost, complex implementation, organizational change and resistance of staff.

Digital signature is an electronic, cryptographic equivalent of a handwritten signature. It is created by applying the signer's private key to a message digest (hash) of the document, and it proves who signed the message and that it has not been changed.

Requirements in a secure transaction

• Authentication: the receiver must be able to confirm the identity of the signer (through a digital certificate issued by a certifying authority).
• Integrity: any change to the message after signing must be detectable.
• Non-repudiation: the signer cannot later deny having signed.
• Uniqueness/Unforgeability: the signature depends on the signer's private key and on the document content, so it cannot be copied to another document.
• The private key must be kept secret and the signature must be easy to generate and verify.

How it works

1. The sender computes a hash (digest) of the message using an algorithm such as SHA-256.
2. The digest is encrypted with the sender's private key; this encrypted digest is the digital signature.
3. The message, signature and the sender's certificate (public key) are sent to the receiver (the message can also be encrypted for confidentiality).
4. The receiver decrypts the signature with the sender's public key to get the original digest.
5. The receiver computes a new hash of the received message.
6. If both digests match, the signature is valid: the message is authentic and unaltered. Otherwise it is rejected.

Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates on a decentralized peer-to-peer network, usually based on blockchain technology, without a central bank or authority. New units are created by mining or protocol rules, and transactions are verified by network nodes and recorded in a public ledger. Examples: Bitcoin, Ethereum, Litecoin.

Legal provisions in Nepal: Nepal Rastra Bank (NRB) has declared cryptocurrency transactions illegal. In 2021 (Bhadra 2078) NRB issued a notice banning trading, mining and use of cryptocurrencies, and the Foreign Exchange Regulation Act and NRB Act do not recognize them as legal tender. Banks and financial institutions are barred from dealing with them, and the Assets (Money) Laundering Prevention Act and related laws allow action against those involved. Fines and imprisonment can apply, and people have been arrested for crypto trading.

Difference from virtual currency

Thus all cryptocurrencies are virtual currencies, but not all virtual currencies are cryptocurrencies.

Search Engine Optimization (SEO) is the process of improving the structure, content and external links of a website so that it ranks higher in the unpaid (organic) results of search engines such as Google for relevant keywords, thus increasing the quantity and quality of visitors.

Importance for the growth of a website

• More organic traffic: most users click on the first few results; a higher rank brings continuous visitors without paying for each click.
• Cost-effective marketing: it gives a high return compared with paid ads, and the results last long.
• Credibility and trust: users trust sites that rank at the top.
• Better user experience: SEO improves speed, mobile friendliness, navigation and content quality.
• Targeted visitors and higher conversion: people searching with specific keywords are more likely to buy or register.
• Brand visibility and awareness: appears in front of potential customers at the moment of need.
• Competitive advantage: a business that ranks above rivals captures their customers.
• Measurable results: tools like Google Analytics and Search Console track keywords, traffic and conversions.

Key techniques include keyword research, on-page optimization (titles, meta tags, headings, content), technical SEO (speed, sitemap, HTTPS) and off-page SEO (backlinks, social signals).

Security requirements of the Internet and e-commerce applications

1. Confidentiality (privacy): information such as card numbers and personal data must be seen only by authorized parties.
2. Integrity: data must not be altered in storage or transit without detection.
3. Authentication: both parties must prove their identity.
4. Authorization: each user may do only permitted actions.
5. Non-repudiation: neither party can deny a transaction.
6. Availability: the site and services must be accessible at all times.
7. Auditing/accountability: actions must be logged and traceable.

How they are fulfilled by hardware and software systems

• Confidentiality: encryption using SSL/TLS (HTTPS), VPNs, PGP, encrypted databases; for example the padlock in a browser while paying with a card.
• Integrity: hash functions (SHA), message authentication codes, digital signatures, checksum and database controls.
• Authentication: passwords, OTP, smart cards, tokens, biometric devices, digital certificates issued by a certification authority, two-factor authentication.
• Authorization: operating system and application access control lists, role-based access control, firewalls restricting ports and addresses.
• Non-repudiation: digital signatures with timestamps and certificate-based transactions, server logs.
• Availability: redundant servers, RAID storage, UPS and generators, load balancers, backup and recovery sites, anti-DDoS appliances.
• Perimeter and threat protection: hardware/software firewalls, DMZ, intrusion detection and prevention systems, antivirus and anti-malware, web application firewalls, regular patching.
• Payment security: secure payment gateways, PCI-DSS compliance, tokenization, 3-D Secure.
• Auditing: log servers, SIEM tools and vulnerability scanners.

Example: in an online purchase, the browser verifies the merchant's SSL certificate (authentication), encrypts the card data (confidentiality), a hash ensures nothing is modified (integrity), the bank asks for an OTP (strong authentication), and logs/digital receipts prevent denial (non-repudiation). Combining these layers gives a secure transaction environment.

Trend of cashless transactions in Nepal

Digital payments in Nepal have grown rapidly, driven by mobile banking, internet banking, digital wallets (eSewa, Khalti, IME Pay), QR payments (Fonepay, NepalPay QR), connectIPS, card payments through ATMs/POS, and the Covid-19 pandemic, which pushed people toward contactless payment. The number and value of mobile banking users, QR merchants and wallet transactions have increased every year, and Nepal Rastra Bank has supported this through the Payment and Settlement Act, licensing of payment service providers, interoperable QR and promotion of a cashless society. Utility bills, tickets, mobile top-up, education fees, taxes and online shopping are now commonly paid digitally. Cash is still dominant in rural areas.

Benefits of digital payments / cashless economy

• Convenience and speed: payments any time, anywhere.
• Lower cost of printing, handling and transporting cash.
• Transparency and reduced corruption, tax evasion and black money.
• Safer than carrying cash; transaction records are available.
• Financial inclusion of remote people; supports e-commerce growth.
• Better data for government planning and credit scoring.
• Cashback and rewards for users.

Downsides

• Cyber fraud, phishing, hacking and identity theft.
• Dependence on electricity, internet and mobile network, which are weak in remote regions.
• Digital illiteracy and lack of trust among elderly and rural people.
• Transaction charges, system failures and delayed refunds.
• Privacy concerns because transactions are tracked.
• Excludes people without bank accounts or smartphones; risk of overspending.

Conclusion: digital payment brings efficiency and transparency, but Nepal needs better infrastructure, security, consumer protection and digital literacy to benefit fully.

Evaluating the feasibility of an e-commerce project

A feasibility study checks whether the project is worth carrying out. It has these parts:

1. Technical feasibility: are the required hardware, software, hosting, internet, payment gateway and skills available? Can the site handle expected traffic and integrate with logistics?
2. Economic/financial feasibility: estimate setup and running costs (domain, hosting, development, inventory, marketing, delivery, staff) and expected revenue; use cost-benefit analysis, break-even point, payback period, NPV and ROI. For example, if investment is Rs 500,000 and annual net benefit is Rs 250,000, payback is 2 years.
3. Market feasibility: target customers, demand, competitors, pricing, size of internet and mobile-payment users.
4. Operational feasibility: can the organization manage procurement, order fulfilment, delivery, returns and customer service? Is the staff capable?
5. Legal and regulatory feasibility: company registration, VAT/PAN, Electronic Transactions Act, consumer protection, payment licences.
6. Schedule feasibility: can it be completed in a reasonable time?
7. Risk analysis: security, competition, supply, and fallback plans.

If benefits exceed cost and risks are manageable in all these dimensions, the project is feasible.

Funding techniques for a fresh graduate

• Personal savings and family or friends' support (bootstrapping).
• Bank loans and youth self-employment loans at subsidized rates (e.g. Youth and Small Entrepreneur Self-employment Fund).
• Angel investors and venture capital for scalable start-ups.
• Crowdfunding from many small contributors online.
• Incubators, accelerators and start-up competitions or grants.
• Microfinance and cooperatives (SACCOS).
• Partnerships with co-founders who invest capital.
• Supplier credit and pre-orders from customers to reduce working capital.
• Government schemes and donor-funded programs.

A graduate usually begins with low-cost options such as savings, family support and a small loan, using social media and marketplaces to start small, and then seeks outside investors as the business grows.

Location-based commerce (L-commerce) is a form of mobile commerce in which goods, services and information are delivered to users depending on their geographical location, determined at that moment. It helps online business by reaching the right customer at the right place and time.

Main idea: find where the mobile user is, and then offer relevant products, offers, directions or services nearby, so that businesses can attract nearby customers and customers get timely, personalized services.

Components

• Mobile devices: smartphones with GPS or location sensors.
• Positioning technology: GPS, cell-tower triangulation, Wi-Fi and Bluetooth beacons.
• Communication network: mobile and wireless networks (3G/4G/5G).
• Location content/GIS: digital maps, databases of shops, roads and landmarks.
• Service/application provider: the servers and apps that process location data and match it with offers.
• Payment and user-privacy mechanisms.

Applications

• Nearby restaurant, ATM or hotel search; navigation and ride hailing (Pathao, Uber).
• Location-targeted advertising and coupons when near a store (geofencing).
• Delivery tracking and fleet management.
• Emergency services, tourism guides, and finding friends.
• Local weather, traffic alerts and "check-in" offers.

Help to business: higher conversion through relevant offers, increased footfall to physical stores, better customer service, and useful data about customer movement. Concerns are privacy and accuracy.

Wireless communication is the transmission of information between devices without physical wires or cables, using electromagnetic waves such as radio frequency, microwaves and infrared.

Wi-Fi (IEEE 802.11 standards) is a wireless local area network technology that connects devices to the internet and to each other through an access point/router, usually within tens to hundreds of metres.

Features that made Wi-Fi so popular

• Mobility and convenience: users can move around within the coverage area and stay connected.
• No cabling: easy and cheap to install in homes, offices, campuses and public places.
• High speed: modern standards (802.11n/ac/ax) give hundreds of Mbps to Gbps.
• Low cost: operates on the unlicensed 2.4 GHz and 5 GHz bands, with inexpensive equipment.
• Scalability: more users and access points can be added easily.
• Wide device support: laptops, phones, TVs, printers and IoT devices have built-in Wi-Fi; the standard is interoperable (Wi-Fi Alliance certification).
• Hotspots: available in cafes, airports, hotels and universities.
• Security: WPA2/WPA3 encryption protects data.
• Flexibility to share one internet connection among many users.

Customer Relationship Management (CRM) systems capture and integrate customer data from all points of contact (sales, marketing, call centre, website, email, social media, stores) in one database, analyze it and give it to everyone who deals with the customer. They help businesses get closer to customers as follows:

• Single view of the customer: a complete history of purchases, complaints and preferences is available to every employee, so the customer does not repeat the same information.
• Personalization: analysis of buying behaviour supports targeted offers, recommendations and communication.
• Better customer service: call-centre and help-desk modules track queries, route and resolve them faster, increasing satisfaction.
• Sales force automation: managing leads, opportunities and follow-ups helps convert prospects.
• Marketing automation: campaign management, segmentation and measurement of response.
• Customer retention and loyalty: identify profitable and at-risk customers and run loyalty programs; this lowers the cost of acquiring new customers.
• Cross-selling and up-selling based on previous purchases.
• Feedback and analytics: surveys, social media listening and reports reveal customer needs and help improve products.

Thus CRM turns data into relationships, giving higher satisfaction, loyalty and profit.

Encryption is the process of converting readable data (plaintext) into an unreadable form (ciphertext) using an algorithm and a key, so that unauthorized persons cannot understand it. Decryption is the reverse process of converting ciphertext back to plaintext using the proper key.

Symmetric key encryption (secret key)

• The same single key is used by sender for encryption and by receiver for decryption.
• Fast and suitable for large amounts of data.
• Problem: secure distribution and management of the shared key; for n users, n(n-1)/2 keys are needed.
• Examples: DES, 3DES, AES, RC4.
• Process: Plaintext --(key K)--> Ciphertext --(same key K)--> Plaintext.

Asymmetric key encryption (public key)

• A pair of mathematically related keys is used: a public key (shared openly) and a private key (kept secret). Data encrypted with one can be decrypted only with the other.
• For confidentiality the sender encrypts with the receiver's public key, and only the receiver can decrypt with his private key. For digital signatures, the sender signs with his private key and anyone verifies with the public key.
• Solves the key-distribution problem, but is slower and needs longer keys.
• Examples: RSA, Diffie-Hellman, ElGamal, ECC.

In practice, both are combined: the asymmetric method securely exchanges a symmetric session key, which then encrypts the bulk data (as in SSL/TLS).

Virtual currency is a digital representation of value that is issued and used in an online or virtual environment, not issued by a central bank as legal tender. It exists only electronically and is used to buy virtual or sometimes real goods and services within a community or platform.

Types of virtual currencies

1. Closed (non-convertible) virtual currency: used only inside a specific game or platform and cannot be exchanged for real money. Examples: World of Warcraft gold, in-game coins and gems.
2. Virtual currency with one-way flow (unidirectional): can be bought with real money but not converted back, or can be redeemed only for platform goods. Examples: Amazon Coins, Facebook Credits, loyalty/reward points and airline miles.
3. Open (bidirectional, convertible) virtual currency: can be bought and sold against real currency and used for real goods and services. Examples: Bitcoin, Ethereum, Linden Dollars (Second Life).

Popular examples in the market

• Bitcoin (BTC): first and most valued cryptocurrency, a decentralized payment system.
• Ethereum (ETH): platform for smart contracts and decentralized applications.
• Litecoin, Ripple (XRP), Dogecoin and other altcoins.
• Stablecoins (Tether USDT, USDC), whose value is pegged to a currency such as the US dollar.
• Platform tokens and game currencies, such as Robux, V-Bucks, and Linden Dollars.

Virtual currencies offer fast and low-cost transfer, but price volatility, fraud and regulatory restrictions (for example, crypto is prohibited in Nepal) are concerns.

An e-commerce site needs promotion to attract visitors and convert them into buyers. Common ways are:

1. Search Engine Optimization (SEO): optimizing content, keywords, meta tags, speed and backlinks to rank high organically.
2. Search engine marketing / pay-per-click ads: Google Ads, where the site appears at the top for chosen keywords and the business pays per click.
3. Social media marketing: pages, groups, posts, reels and paid campaigns on Facebook, Instagram, TikTok, YouTube; influencer marketing.
4. Email marketing: newsletters, offers, cart-abandonment and personalized emails to subscribers.
5. Content marketing: blogs, videos, guides and customer stories that attract and educate users.
6. Banner and display advertising on other popular sites, and affiliate marketing, where partners earn a commission per sale.
7. Discounts, coupons, loyalty programs and festival sales (Dashain/Tihar offers, flash sales).
8. Mobile marketing: SMS, push notifications and apps.
9. Online PR, reviews and word of mouth: customer ratings, referral rewards, press releases.
10. Traditional media and offline: TV, radio, newspapers, hoardings, printing the URL on cards, packaging and vehicles; events and sponsorships.
11. Marketplace listing and partnerships with portals and payment providers.
12. Retargeting and analytics to track and improve campaigns.

A mix of these, with a consistent brand and good service, gives a strong market presence.

Definition: E-commerce (electronic commerce) is the buying, selling, marketing and servicing of products, services and information through electronic networks, mainly the internet. It includes online ordering, electronic payments, and electronic delivery or logistics.

Significance in today's business world

• Global reach, 24x7 availability with no geographical limitation.
• Lower operating costs (no physical shop, less staff, paperless).
• Wider choice, easy price comparison and convenience for customers.
• Faster transactions and supply-chain integration.
• Personalization and customer data analytics.
• Opens opportunity for small businesses, start-ups and rural producers; creates new jobs and business models.
• Supports cashless economy and gives firms a competitive advantage.
• Limitations: security and privacy risks, lack of physical inspection, delivery problems, digital divide.

Types (models) of e-commerce with examples

1. B2C (Business to Consumer): a business sells to individual customers. Examples: Daraz, Amazon, Sastodeal.
2. B2B (Business to Business): trade between businesses. Examples: Alibaba, IndiaMART.
3. C2C (Consumer to Consumer): individuals sell to individuals via a platform. Examples: eBay, OLX, Hamrobazar.
4. C2B (Consumer to Business): individuals offer products/services to firms, e.g. freelancers on Upwork, stock-photo sellers, or reverse auctions.
5. B2G (Business to Government): businesses supply goods or services to government through e-procurement, e.g. Nepal's Public Procurement Monitoring Office e-bidding.
6. G2C (Government to Citizen): government services online, e.g. tax filing, license renewal, passport application, bill payment.
7. M-commerce: transactions via mobile devices, e.g. eSewa, mobile banking.
8. Others: peer-to-peer (P2P), social commerce (Facebook shops), and L-commerce.

The statement is true because modern organizations handle huge volumes of data and operate in competitive, fast-changing markets. Information systems collect, process and present information at each management level, improving efficiency, control and decisions. Each system serves a different level.

1. Transaction Processing System (TPS)

• Serves the operational level; records and processes routine daily transactions such as sales, billing, payroll, order entry, reservations and bank deposits.
• Inputs are transactions; outputs are detailed reports and updated databases.
• Help: speed and accuracy of day-to-day operations, keeps records, and supplies data to all other systems.

2. Management Information System (MIS)

• Serves middle managers; summarizes TPS data into periodic, structured reports (daily, weekly sales summary, inventory status, exception reports).
• Help: monitoring, control and planning of performance against targets; routine decisions.

3. Decision Support System (DSS)

• Serves middle and senior managers for semi-structured and unstructured problems; combines data, analytical models and interactive tools (what-if analysis, simulation, forecasting).
• Example: planning delivery routes, evaluating pricing alternatives.
• Help: better analysis of alternatives and faster, more informed decisions.

4. Executive Support System (ESS)

• Serves senior executives for strategic, non-routine decisions; uses summarized internal data with external information (market trends, competitors) through dashboards and drill-down.
• Help: strategic planning, trend spotting, and monitoring overall performance.

Why they are a must: they make the data flow from operations to top management, reduce cost, improve customer service, support competitive strategy, ensure accuracy, and give quick information in the digital economy. Without them, organizations would make slow, uninformed decisions.

Ransomware is malicious software that encrypts a victim's files or locks the system and demands a ransom payment (usually in cryptocurrency) in exchange for the decryption key. Attacks grew during and after Covid-19 because of remote work, weakly secured home networks, more online services and unprepared organizations.

How it spreads: phishing emails and malicious attachments, infected downloads, exploit of unpatched vulnerabilities and weak remote desktop (RDP) credentials, drive-by downloads and infected USB devices.

Effects of attacks

• Loss of access to data and system downtime, stopping business operations.
• Financial loss from ransom, recovery and lost revenue.
• Data theft and exposure (double extortion), privacy and legal penalties.
• Loss of reputation and customer trust.
• Disruption of critical services such as hospitals and banks.

Types of ransomware

• Crypto ransomware: encrypts files (WannaCry, Locky, CryptoLocker).
• Locker ransomware: locks the device or screen without encrypting files.
• Scareware: fake warnings demanding payment.
• Doxware/leakware: threatens to publish stolen data.
• Ransomware-as-a-Service (RaaS): criminals rent ready-made ransomware (REvil, DarkSide).
• Mobile and wiper variants.

Ways to protect

• Regular offline/off-site backups, tested restoration.
• Keep OS and software patched; use up-to-date antivirus/EDR.
• Email filtering and staff awareness training on phishing.
• Strong passwords, multi-factor authentication, disable unused RDP.
• Least privilege, network segmentation, application whitelisting.
• Firewalls, intrusion detection and incident response plan.

What to do when attacked

1. Isolate infected machines from the network immediately.
2. Do not pay the ransom (no guarantee, encourages crime); consider legal advice.
3. Identify the ransomware type and inform the IT/security team, management and authorities (Nepal Police Cyber Bureau, CERT).
4. Remove the malware, restore data from clean backups after cleaning the systems.
5. Change all passwords, patch the entry point and investigate the cause.
6. Notify affected customers if data is leaked and review policy to prevent recurrence.

L-Commerce (location-based commerce) is the delivery of goods, services and information to mobile users according to their current geographical position, determined by GPS or network positioning. Examples: nearby restaurant search, location-based coupons, navigation and ride hailing, delivery tracking.

Limitations and barriers of e-commerce

Technical limitations

• Lack of universal security standards, and concerns over reliability and system failure.
• Insufficient bandwidth and slow internet, especially in rural areas.
• Integration problems with legacy systems and database; constantly changing software tools.
• Need for special web servers and infrastructure.

Non-technical limitations

• Security and privacy fears: fraud, card theft, phishing, and misuse of personal data cause lack of trust.
• Inability to touch and feel products; doubts about quality.
• Legal and regulatory issues: unclear cyber laws, taxation, jurisdiction and consumer protection across borders.
• Cost and ROI: high initial investment and difficulty measuring benefits.
• Logistics and delivery problems: address systems, delays and returns.
• Payment infrastructure: limited use of cards and online payment, and cash-on-delivery dependence.
• Digital divide and low literacy: many people lack internet, devices or skills.
• Resistance to change from customers and employees; cultural and language barriers.
• Intense competition and channel conflict with traditional business.

Supply Chain Management (SCM) is the planning, coordination and control of all activities that move materials, information and money from suppliers through manufacturers, distributors and retailers to the final customer. Its goal is to deliver the right product, at the right place, time and cost, with minimal inventory.

Nike sneaker supply chain

1. Suppliers (upstream): raw-material and component suppliers provide the laces, eyelets, uppers (fabric/leather/mesh) and soles (rubber, foam) to the factories. Their own suppliers provide cotton, rubber, chemicals and so on (tier-2 suppliers).
2. Procurement and planning: Nike forecasts demand for each model and size, plans purchasing of components and schedules production using SCM/ERP software, sharing forecasts with suppliers.
3. Manufacturing (contract factories): components are delivered to assembly factories, mainly in Asia (Vietnam, Indonesia, China). The upper is stitched, attached to the sole, eyelets and laces are fitted, then the shoe is quality tested and packed.
4. Logistics and distribution: finished shoes move by sea or air to regional distribution centres and warehouses, where inventory is tracked.
5. Retail and sales channels: distributed to Nike stores, partner retailers and online direct-to-consumer channels (website and app).
6. Customer and returns (downstream): the customer buys, and returns or feedback flow back (reverse logistics), giving demand data that updates the next forecast.

Information flows both ways in real time, so that stock of laces, eyelets, uppers and soles matches production plans, reducing inventory cost, shortages and lead time.

I-Way (Information Superhighway) is a term for a high-speed, high-capacity global digital communication network that integrates the internet, telephone, cable TV and satellite networks to carry voice, data, video and multimedia between people and organizations, enabling e-commerce, e-learning, e-governance and entertainment. The internet is considered the main basis of the I-Way.

Components of I-Way

1. Local on-ramps: the way users connect to the network, such as ISPs, telephone companies, cable TV operators, wireless/mobile and satellite providers, through modems, routers and access devices.
2. Global information distribution network (backbone): the high-capacity long-distance fibre-optic, microwave and satellite links, together with routers and switches that carry traffic between regions and countries.
3. Access devices: computers, mobile phones, set-top boxes, tablets, PDAs and smart TVs used by users.
4. Information content/services: the web servers, databases, digital libraries, video on demand, online shops, and other information providers.
5. Protocols and standards: TCP/IP, HTTP and related rules for communication.
6. Public policy and regulation: laws, security, privacy and pricing policies set by government and regulators.

(a) ACH (Automated Clearing House)

ACH is an electronic funds-transfer network that processes batches of credit and debit transactions between banks and financial institutions, without paper cheques or cash. Under rules set by an operator (NACHA in the USA; Nepal Clearing House Ltd. in Nepal), banks submit transactions in files, which are sorted, cleared and settled at set times.

• Types: ACH credit (payer pushes money, e.g. salary payment, vendor payment) and ACH debit (payee pulls money, e.g. utility bills, loan instalments, insurance premiums).
• Advantages: low cost, secure, automated, and suitable for bulk and recurring payments; used by e-checks.
• Disadvantage: settlement is slower (batch based, often 1-2 days) than card or real-time payments.

(b) Cryptography and its types

Cryptography is the science of securing information by converting it into an unreadable form so that only the intended recipient can read it. It provides confidentiality, integrity, authentication and non-repudiation.

Types:

1. Symmetric key (secret key) cryptography: one shared key encrypts and decrypts. Fast, e.g. DES, AES. Key distribution is a problem.
2. Asymmetric key (public key) cryptography: a public and private key pair; solves key distribution, used for digital signatures and key exchange, e.g. RSA, ECC. Slower.
3. Hash functions (hashing): one-way functions producing a fixed-length digest from data, used for integrity and password storage, e.g. MD5, SHA-256. No key and not reversible.

Bitcoin is the first and most widely known decentralized digital currency (cryptocurrency), introduced in 2009 by a person or group using the name Satoshi Nakamoto. It works on a peer-to-peer network without a bank or government; transactions are validated by miners using proof-of-work and recorded in a public ledger called the blockchain. The supply is limited to 21 million coins.

Advantages of using bitcoin for payment

• Decentralized, free from control of any central bank or government.
• Low transaction fees, especially for international transfers.
• Fast cross-border transfer, 24x7, with no intermediaries.
• Transparent and tamper-resistant records on the blockchain.
• Pseudonymous, giving privacy; no need to reveal card details, so no chargeback fraud for merchants.
• Open to the unbanked with only internet access.
• Limited supply makes it a potential store of value.

Disadvantages

• High price volatility, so unsuitable as stable payment.
• Transactions are irreversible; mistakes or theft cannot be recovered.
• Wallet and private key loss or hacking means permanent loss.
• Limited acceptance by merchants; slow confirmation and scalability limits.
• Used for illegal activities, money laundering; banned or restricted in many countries including Nepal.
• Mining consumes large amounts of energy.
• Lack of consumer protection and technical knowledge requirement.

Websites can be classified by their purpose as follows:

1. Static website: pages with fixed content written in HTML/CSS, same for every visitor and changed only by editing the code. Cheap and fast, but limited interactivity. Example: a small personal or company profile page.
2. Dynamic website: content generated from a database by server-side scripts (PHP, ASP.NET, Node.js) and can change per user or time. Example: news portals, social networks.
3. E-commerce website: sells products or services online with catalogue, shopping cart, secure payment and order tracking. Examples: Daraz, Amazon.
4. Portal website: gateway collecting information from many sources, with search, email, news, links and services in one place. Examples: Yahoo, government service portals.
5. Informational/educational website: gives information or learning material. Examples: Wikipedia, university sites, Education Nepal.
6. Blog / personal website: regularly updated posts or personal portfolio, in reverse chronological order.
7. Social networking / community website: users create profiles and interact, share content. Examples: Facebook, LinkedIn.
8. Corporate / business website: presents a company's products, services, contact and investor information.
9. Media / entertainment website: videos, music and news streaming. Examples: YouTube, Netflix.
10. Non-profit / government website: provides public services, information and donations. Example: nepal.gov.np.
11. Web application / wiki / forum websites: interactive tools such as online banking, Google Docs, discussion boards.

Wireless communication uses open air as the medium, so signals can be intercepted by anyone within range. The main security issues are:

1. Eavesdropping / sniffing: attackers capture unencrypted traffic and read passwords and card data.
2. Unauthorized access / rogue access points: an attacker installs a fake access point or connects to a poorly protected network and enters the internal network.
3. Evil twin and man-in-the-middle attacks: a fake hotspot with the same name tricks users into connecting, and the attacker intercepts or modifies messages.
4. Weak encryption and authentication: WEP is easily broken, default passwords and weak WPA keys can be cracked.
5. Denial of service and jamming: interference or flooding makes the network unavailable.
6. MAC spoofing and session hijacking: impersonating authorized devices.
7. War driving / war chalking: searching for open networks to exploit.
8. Malware and data theft from infected devices; theft or loss of mobile devices; Bluetooth attacks (bluejacking, bluesnarfing).
9. Privacy and location tracking of mobile users.

Countermeasures: use WPA2/WPA3 encryption, strong passphrases, disable SSID broadcast and default settings, MAC filtering, VPNs and HTTPS, firewalls, firmware updates, wireless intrusion detection, and avoid public Wi-Fi for sensitive transactions.

Search Engine Optimization (SEO) is the practice of improving a website's content, structure and external links so that it appears higher in the organic results of search engines for relevant search terms, to increase quality traffic.

The SEO cycle SEO is continuous and iterative:

1. Goal setting and analysis: define objectives (traffic, sales, leads), audit the present site, study competitors.
2. Keyword research: find the words and phrases the target audience searches (volume, competition, intent).
3. On-page optimization: write quality content, optimize titles, meta descriptions, headings, URLs, images (alt text), internal links and keyword placement.
4. Technical optimization: improve speed, mobile friendliness, HTTPS, sitemap.xml, robots.txt, structured data and fix broken links.
5. Off-page optimization / link building: earn backlinks, social signals, directory and guest-post listings.
6. Submission and indexing: submit sitemap to search engines so that bots crawl and index the pages.
7. Monitoring and analysis: track rankings, traffic, bounce rate and conversions with Google Analytics and Search Console.
8. Refinement: update content and strategy based on results and algorithm changes, then repeat.

Use of bots in SEO Search engine bots (also called crawlers or spiders, e.g. Googlebot) are automated programs that visit pages by following links, read their content and code, and store the information in the search index. They:

• discover new and updated pages and follow links (crawling);
• analyze content, keywords, tags and structure to understand the topic (indexing);
• supply data used by the ranking algorithm to decide the position of pages in results.

SEO specialists help bots by creating a sitemap, using a robots.txt file to allow or block certain pages, ensuring clean links and fast, accessible pages. SEO tools also use bots to audit sites, check broken links, and monitor competitors' rankings. Poor use, such as blocking important pages, makes them invisible to search engines.

Expert System: an expert system is an artificial intelligence based computer program that captures the knowledge of human experts in a specific narrow domain and uses it to give advice, diagnose problems or solve them, in the way a human expert would. Examples: MYCIN (medical diagnosis), XCON (computer configuration), loan approval and fault diagnosis systems.

Components

1. Knowledge base: the facts and rules (usually IF-THEN) obtained from experts in the domain.
2. Inference engine: the reasoning mechanism that applies rules to facts to reach conclusions, using forward chaining (data to goal) or backward chaining (goal to data).
3. User interface: lets the user enter queries and facts and receive advice, often in natural language or menus.
4. Explanation facility: shows how and why a conclusion was reached, which builds trust.
5. Knowledge acquisition facility: tools for the knowledge engineer to collect, enter and update expert knowledge.
6. Working memory (blackboard): holds the current facts and intermediate results of the case. (The people involved are the domain expert, knowledge engineer and the end user.)

Characteristics

• Expertise in a narrow, specific domain, with high performance.
• Uses symbolic reasoning and heuristic (rule-of-thumb) knowledge.
• Can handle uncertainty and incomplete information.
• Separates knowledge from the inference mechanism, so knowledge is easy to update.
• Gives explanations for its decisions.
• Consistent, available 24 hours, not affected by fatigue or emotion.
• Can learn and be improved by adding rules; but lacks common sense and creativity and works only within its domain.

(a) Intranet, Extranet and Internet

(b) Social network and social media types

A social network is an online platform or structure that lets people build profiles, connect with others and share information, messages, photos and videos, forming a network of relationships based on common interests, friendship or work. Examples are Facebook, LinkedIn and Instagram.

Types of social media

1. Social networking sites: keep people connected, e.g. Facebook, LinkedIn.
2. Media sharing sites: share photos and videos, e.g. YouTube, Instagram, TikTok.
3. Microblogging: short updates, e.g. X (Twitter).
4. Blogs and publishing platforms: e.g. WordPress, Medium.
5. Discussion forums and Q&A: e.g. Reddit, Quora.
6. Messaging and chat apps: e.g. WhatsApp, Viber, Messenger.
7. Social bookmarking/curation sites: e.g. Pinterest, Delicious.
8. Review and rating sites: e.g. TripAdvisor, Yelp.
9. Wikis/collaborative projects: e.g. Wikipedia.

Pure e-commerce means that all dimensions of the business (the product or service, the ordering and payment process, and the delivery agent) are digital. The entire transaction, including delivery, happens online.

Partial e-commerce means that at least one of these dimensions is physical; the ordering may be online, but the product or its delivery is physical.

Hence buying a Kindle e-book is pure e-commerce, while buying a printed book from the same website is partial e-commerce, since delivery is physical.

Security risks in wireless networks

• Eavesdropping/sniffing of unencrypted traffic, since radio signals travel through open air.
• Rogue access points and evil twin hotspots to trick users into connecting.
• Man-in-the-middle attacks altering or capturing transactions.
• Weak encryption (WEP) or poor passwords, allowing unauthorized access.
• Denial of service / jamming making the network unavailable.
• Session hijacking, MAC spoofing, malware and theft of data from unsecured devices.
• Phishing through fake login pages on public hotspots.

Protecting e-commerce transactions on wireless networks

• Use HTTPS/SSL/TLS so data is encrypted end to end; check the padlock and certificate.
• Use strong wireless encryption (WPA2/WPA3), strong passphrases, and change default router settings.
• Use a VPN on public Wi-Fi, or avoid sensitive transactions on open networks.
• Use two-factor authentication/OTP and secure payment gateways with tokenization.
• Keep devices, apps and browsers updated, with antivirus and firewalls.
• Use wireless intrusion detection, MAC filtering and hide SSID for business networks.
• Educate users to avoid unknown hotspots and suspicious links, and to log out after sessions.

E-commerce (EC) security requirements are the properties a system must guarantee so that online transactions can be trusted.

• Authentication: verifying the identity of users, merchants and servers (passwords, OTP, digital certificates, biometrics).
• Authorization: allowing an authenticated party to do only what it is permitted to do (role-based access control).
• Confidentiality (privacy): keeping card numbers, personal data and orders secret from unauthorised parties, using encryption such as SSL/TLS.
• Integrity: ensuring data is not altered in transit or in storage, using hashing and digital signatures.
• Availability: keeping the site and services running and reachable, resisting DoS attacks and failures (backups, redundancy, firewalls).
• Non-repudiation: ensuring a buyer or seller cannot later deny a transaction, using digital signatures and audit logs.
• Auditing and accountability: recording activity so that incidents can be traced.

Key difference. An Intrusion Detection System (IDS) is a passive monitoring tool: it watches a copy of the traffic, detects suspicious activity using signatures or anomaly analysis, and raises an alert. It does not block anything. An Intrusion Prevention System (IPS) is placed inline in the traffic path, so it can detect and also actively drop packets, block the source IP or reset connections.

How they complement each other in an e-commerce network. The IPS stops known attacks automatically at the perimeter (SQL injection, DoS floods, malware), while the IDS gives deeper visibility inside the network (internal servers, database segments) and logs evidence for forensic analysis. Alerts from the IDS help tune IPS rules, and the IPS reduces the volume of attacks the IDS analysts must handle.

Internet --> Firewall --> IPS (inline) --> Switch --> Web / App / DB servers
                                             |
                                       (mirror port)
                                             v
                                           IDS --> Alerts / Admin console

SEO (Search Engine Optimization) is the practice of improving a website's content, structure and links so that it ranks higher in the unpaid (organic) results of search engines such as Google.

Why it is crucial, especially for e-commerce:

• Most shoppers begin with a search; high ranking brings free, targeted traffic.
• Higher traffic from people already looking for a product means better conversion and more sales at lower cost than paid advertising.
• Top-ranked sites are seen as more credible and trustworthy.
• It is long-lasting and cost-effective compared with ads, which stop when payment stops.
• It improves user experience (fast loading, mobile-friendly, clear navigation), which also reduces bounce rate.
• It helps small online stores compete with larger ones through keywords for product niches.

Main techniques: keyword research, on-page optimization (titles, meta descriptions, headings, image alt text), quality content, backlinks (off-page SEO), site speed and mobile optimization, and a sitemap.

Differences

Contribution to E-Commerce connectivity

• ADSL: gives homes and small businesses always-on, inexpensive broadband, so customers can browse, order and pay online, and small sellers can run their web stores. Its high download speed suits shopping and media.
• WLAN: lets customers and staff connect wirelessly in shops, malls, warehouses and offices; it supports mobile POS devices, barcode scanners and inventory systems and allows m-commerce on smartphones.
• WMAN: links branches, offices and hotspots across a city without laying cable, giving businesses a backbone to reach servers and partners.
• WiMAX: provides broadband to rural and remote areas where cable or ADSL is unavailable, extending the e-commerce customer base and backhauling Wi-Fi hotspots.

Technical vs non-technical attacks

Examples of non-technical attacks

• Phishing: fake emails or sites that trick users into giving passwords or card numbers.
• Social engineering / pretexting: an attacker poses as a bank, supplier or help desk to obtain confidential information.
• Shoulder surfing and dumpster diving: watching someone enter a PIN or searching discarded papers for data.
• Insider misuse: a dishonest employee leaks or sells customer data.

Effect on e-commerce operations: stolen customer credentials and credit card data lead to fraud and chargebacks; accounts may be taken over and fake orders placed; the business suffers financial loss, legal penalties for data breaches, and damage to reputation and customer trust, which reduces sales; and operations are disrupted while systems are investigated and secured.

Funding options for a new online business

Key website design criteria for an online store

• Usability and easy navigation: clear menus, search, categories and few clicks to buy.
• Attractive, consistent layout: professional look, good colours, readable fonts, quality product images.
• Fast loading: optimised images and hosting.
• Mobile responsiveness: works on all screen sizes.
• Clear product information: descriptions, prices, availability, reviews.
• Simple checkout and multiple payment options: guest checkout, secure gateways, shipping and tracking details.
• Security and trust: SSL/HTTPS, privacy policy, return policy, trust badges.
• Customer support: contact details, FAQs, live chat.
• SEO-friendliness and accessibility.
• Scalability to handle more products and visitors.

E-Commerce (EC) is the buying and selling of goods and services, and the transfer of money, over the internet or other electronic networks. It covers transactions only.

E-Business is broader: it covers all electronic business activities, including EC plus internal processes such as supply chain management, customer service, collaboration with partners, ERP, CRM, e-learning and online recruiting.

Examples

• E-Commerce: a customer buys a mobile phone from Daraz and pays online.
• E-Business: a company uses ERP to manage inventory, payroll and production, exchanges orders with suppliers electronically and serves customers by CRM, in addition to selling online.

Supply Chain Management (SCM) is the coordination and management of the flow of materials, information and money across all parties involved in producing and delivering a product: suppliers, manufacturers, warehouses, distributors, retailers and customers. Its aim is to deliver the right product at the right time, place and cost while reducing inventory and delay.

Main components / stages

• Plan: forecast demand and plan production and inventory.
• Source: select suppliers and procure raw materials.
• Make: manufacture or assemble the product.
• Deliver: warehousing, order management, transport and distribution.
• Return: handle defective goods and returns.

Flows: the product flow (goods from supplier to customer), the information flow (orders, stock levels, delivery status), and the financial flow (payments, credit terms).

Benefits: lower inventory and operating costs, faster delivery, fewer stock-outs, better supplier relationships, better customer satisfaction. E-SCM using the internet and EDI makes information visible to all partners in real time and reduces the bullwhip effect.

Example: A noodle manufacturer in Nepal buys wheat and packaging from suppliers, produces noodles in its factory, and sends them to distributors, who deliver to retailers. Retailers' sales data is shared electronically with the factory, which then adjusts production and orders raw materials just in time, avoiding both stock-outs and overstock.

The most significant barrier for Location-Based Services is privacy and security (lack of trust).

Justification: LBS continuously collects a user's real-time location, from which a person's home, workplace, routines and movements can be inferred. Users fear tracking, stalking, unwanted targeted advertising, data being sold to third parties and leakage in a breach. Without clear consent, control and legal protection, they refuse to enable location sharing, so adoption and trust stay low. Technical barriers such as GPS accuracy, bandwidth and battery life, and cost, can be improved with technology, but the trust problem needs policy measures: explicit opt-in, anonymisation, encryption and transparent privacy policies.

WAP (Wireless Application Protocol) is a standard protocol suite that lets mobile phones and other small wireless devices access web content and internet services despite low bandwidth, small screens and limited memory.

WAP architecture (protocol stack)

1. Wireless Application Environment (WAE): the top layer; contains the microbrowser, WML (Wireless Markup Language) and WMLScript.
2. Wireless Session Protocol (WSP): manages sessions between client and gateway (a binary form of HTTP).
3. Wireless Transaction Protocol (WTP): provides lightweight, reliable request/response transactions.
4. Wireless Transport Layer Security (WTLS): provides encryption, authentication and data integrity.
5. Wireless Datagram Protocol (WDP): transport layer that adapts to bearers such as SMS, GSM, GPRS and CDMA.
6. Bearers: the underlying wireless networks.

Components: WAP client (mobile device with microbrowser), WAP gateway (translator), and the origin web/content server.

How WAP works

1. The user enters a URL or selects a link in the phone's microbrowser.
2. The request is encoded and sent over the wireless network (using WSP/WTP/WDP) to the WAP gateway.
3. The gateway decodes it and converts it into a normal HTTP request, which it sends to the web server over the internet.
4. The web server returns WML/HTML content.
5. The gateway compiles and compresses the content into compact binary form suitable for the device.
6. The gateway sends it back over the wireless network and the microbrowser displays the page.

a. VPN (Virtual Private Network)

A VPN creates a secure, encrypted tunnel over a public network such as the internet, so that remote users or branch offices can connect to a private network as if directly attached to it. Data is encapsulated and encrypted using protocols such as IPsec, SSL/TLS or L2TP, and users are authenticated. VPNs hide the user's IP address, protect data from eavesdropping and are far cheaper than leased lines. Types are remote-access VPN and site-to-site VPN. In e-commerce they connect staff, branches and business partners securely to company systems.

b. IPS (Intrusion Prevention System)

An IPS is a network security device or software placed inline in the traffic path that monitors traffic for malicious activity and automatically takes action, such as dropping packets, blocking the source IP or resetting the connection. It detects threats using signature-based, anomaly-based or policy-based methods. It is an active extension of an IDS, which only alerts. IPS protects e-commerce servers from attacks such as DoS, SQL injection, worms and exploits, although false positives may block legitimate traffic.

cPanel is a web-based hosting control panel with a graphical interface that lets website owners manage their hosting account without command-line knowledge. It provides tools for file management, FTP accounts, email accounts, domains and subdomains, databases (MySQL, phpMyAdmin), backups, SSL certificates and statistics.

Steps to upload an EC site to the web server

1. Buy a domain name and a hosting plan; point the domain's name servers to the host.
2. Log in to cPanel with the credentials provided by the host.
3. Create a database and a database user in MySQL Databases, assign the user to the database with privileges, and note the name, user and password.
4. Prepare the site locally: compress the site files into a ZIP and export the local database as a .sql file.
5. Open File Manager, go to the public_html folder (or the domain's root folder) and upload the ZIP (or use an FTP client such as FileZilla), then extract it.
6. In phpMyAdmin, import the .sql file into the new database.
7. Edit the site's configuration file (for example config.php or wp-config.php) with the new database details and site URL.
8. Install an SSL certificate (HTTPS) for secure checkout, and set up payment gateway settings and email accounts.
9. Test the site by browsing the domain: check pages, links, forms, cart and payment, and then take a backup.

EC defense strategy is the planned set of measures an organisation uses to protect its e-commerce systems and data. It covers the following steps: prevention and deterrence (access control, encryption, firewalls), detection (IDS, monitoring and audit logs), containment and damage limitation, recovery (backups, disaster recovery plans), correction (fixing vulnerabilities) and awareness and compliance (training, policies, laws). A layered, "defence in depth" approach is used, supported by risk assessment.

PKI (Public Key Infrastructure)

PKI is the framework of technologies, policies and people that manages digital certificates and public-private key pairs to give secure communication, authentication, integrity and non-repudiation.

Components

• Public and private keys: a key pair for asymmetric encryption. The public key is shared; the private key is kept secret.
• Digital certificate (X.509): binds a public key to an identity, signed by a CA.
• Certification Authority (CA): trusted party that issues, signs, renews and revokes certificates.
• Registration Authority (RA): verifies the identity of applicants for the CA.
• Certificate repository / CRL: stores certificates and lists of revoked ones.
• Key management: generation, storage, backup and expiry of keys.

How it works: the sender encrypts data with the receiver's public key, and only the receiver's private key can decrypt it (confidentiality). For a digital signature, the sender hashes the message and encrypts the hash with their private key; the receiver verifies it with the sender's public key from the certificate (authentication, integrity, non-repudiation). The certificate's validity is checked through the CA chain.

Uses: SSL/TLS for HTTPS, secure email, digital signatures, SET and online payments.

Business plan

A business plan is a written document that describes a business idea, its goals and how it will be achieved, covering marketing, operations and finance. It guides the owners and is used to obtain funding.

Components

• Executive summary: a short overview of the whole plan.
• Business description: mission, vision, products/services, legal structure.
• Market analysis: industry, target customers, competitors, trends.
• Marketing and sales strategy: pricing, promotion, distribution channels.
• Operations plan: technology, website, suppliers, logistics, staffing.
• Organisation and management: team and responsibilities.
• Financial plan: start-up costs, funding needs, revenue forecasts, break-even and profit projections.
• Risk analysis and appendices.

Website usability

Usability is how easily and efficiently users can achieve their goals on a site. Key aspects are:

• clear, consistent navigation and site structure;
• fast page load and a working search;
• readable layout, fonts and colours; clean design;
• helpful content and clear product details;
• simple forms and a short checkout;
• mobile-friendliness and accessibility;
• error handling, with helpful messages and no broken links;
• testing with real users and improving.

Website promotion

Promotion makes the site known and drives traffic.

• SEO: to rank in organic search results.
• Search engine marketing (paid ads): pay-per-click advertising.
• Social media marketing: Facebook, Instagram, TikTok, YouTube.
• Email marketing: newsletters and offers.
• Content marketing and blogs.
• Affiliate and referral programmes, banner advertisements.
• Offline promotion: adding the URL on cards, brochures, vehicles and media.
• Discounts, loyalty offers and customer reviews.

Website structures

Website structure is the way pages are organised and linked.

• Linear (sequential) structure: pages follow one after another in order (like slides). Simple, good for tutorials or checkout flows, but users have little freedom.
• Hierarchical (tree) structure: a home page branches into categories and then sub-categories and pages. Most common for e-commerce, as it is easy to understand and scales well. Navigation back to upper levels is needed.
• Web (network / random) structure: pages link freely to many other pages. Flexible and good for exploration, but users can get lost.
• Grid (matrix) structure: pages arranged in a table-like arrangement with links to neighbours, good for related content such as catalogues.
• Hybrid structure: a combination, for example a hierarchy with cross-links and a linear checkout.

Security issues in wireless communications

• Eavesdropping / interception: radio signals can be captured by anyone in range, exposing unencrypted data.
• Weak encryption: WEP can be cracked easily; WPA2/WPA3 is needed.
• Rogue access points and evil twin attacks: fake hotspots capture user data.
• Man-in-the-middle attacks: the attacker intercepts and alters communication.
• Unauthorised access and war driving: unsecured Wi-Fi gives free entry into the network.
• Denial of service / jamming: interference overloads or blocks the radio channel.
• Device theft or loss of phones and laptops containing data.
• Malware on mobile devices and unsafe applications.
• Session hijacking and weak authentication (default passwords, MAC spoofing).
• Privacy issues such as location tracking.

Countermeasures are strong encryption (WPA2/WPA3, VPN, HTTPS), strong passwords, hidden or filtered access points, disabling default settings, firewalls, IDS, regular updates and user awareness.

Components of an Expert System (1 mark)

An expert system has a knowledge base (facts and rules), an inference engine (applies the rules to the facts to reach conclusions), a user interface, an explanation facility, a knowledge acquisition facility, and a working memory/blackboard. The expert and the knowledge engineer build the knowledge base, and the user queries the system.

Role of the Decision Support System, Executive Information System and Transaction Processing System in a successful company

Transaction Processing System (TPS) (3 marks)

• Records the daily routine transactions, such as sales, orders, payments, payroll and inventory updates, accurately and quickly.
• It is the foundation: it supplies the data to other systems, and is used by operational staff.
• Ensures that customers are served on time, records are accurate and the business runs smoothly (for example point-of-sale billing, bank deposits).

Decision Support System (DSS) (3 marks)

• Helps middle and senior managers to make semi-structured and unstructured decisions, using data, models and analysis tools.
• Supports "what-if" analysis, forecasting, simulation and optimisation.
• Helps the company in pricing, production planning, budgeting and investment choices, leading to better and faster decisions with lower risk.

Executive Information System (EIS) (3 marks)

• Gives top executives a summary of key internal and external information through dashboards, graphs and drill-down reports.
• Focuses on key performance indicators, trends and exceptions for strategic planning and monitoring.
• Helps the top management to track company performance, spot problems and opportunities early, and set long-term strategy.

Together, the TPS collects the data, the DSS analyses it for managers, and the EIS summarises it for executives, so decision making at every level of the company is well informed.