Commerce ePathshala NOTES
(IGNOU)
Important Questions & Answers
IGNOU
: BCOM
BCOS
184 :
E - COMMERCE
Q – What is E-Commerce ?
State It’s Advantages & Disadvantages.
Ans.
As
is obvious, the term e-commerce is
an abbreviated term for ‘electronic commerce’, which refers to the process of
undertaking business transactions over internet. Almost anything - ranging from
basic items such as breads or soaps, to high end expensive products such as
computers or cars and even highly specialised services such as sale of
second-hand products to purchase of property, are all available on the related
e-commerce web-portals.
Depending on the products and services available,
e-commerce web-portals could be understood to be ‘Generic’ and ‘Specific’.
Examples of generic ecommerce portals are ‘Flipkart’, ‘Amazon’, where one could
buy any product, ranging from furniture to flowers. On the other hand ‘Big
Basket’ could be termed as a specific e-commerce web portal as the customer can
order for only grocery related products on this web portal.
ADVANTAGES
AND DISADVANTAGES OF E-COMMERCE
There are no doubts in the minds of the stakeholders of
e-Commerce about its ability to make businesses more profitable due to its
capacity to sell goods, services online. At the same time, there are multiple
factors to keep in mind too.
1.
Accelerated
buying process for saving time: One of the problems
conventional stores face is the delay in buying by a consumer during the
problem of accessing a physical store which may or may not be available.
E-Commerce overcomes this hurdle by aiding the consumer avail the specific
product at their own pace and with ease. It helps the consumer choose from a
wide range of products by making available goods from other chained stores as
well, widening the net of available goods as well fast forward the process to
process payments.
2.
Personalised
store as per Consumer preference: A major asset of
conducting online business is the enhanced shopping experience. As each user is
introduced to a different first page based on their location and advanced
search for conducting a purchase. The consumer's history of purchases also
reflects in the personalized experience of online commerce. This allows
consumers to avail special services like benefits and discounts due to their
loyalty, order history and so on, hence fulfilling customer expectations.
3.
Reduce
recurring cost while hiring virtual support resources:
One of the key factors that aids in reducing cost when it comes to e-commerce
is the outsourcing of tasks to even different countries or employees for use to
many other e-commerce businesses. This makes the presence of a company possible
in multiple locations possible at a fraction of the cost of physical presence.
4.
Customers
retargeting is easier: Retargeting a customer is a key part
of retaining a customer base. Below are some of the techniques which can be
used to retarget customers:-
· It
is a good strategy to share a coupon when customers leave the checkout page.
· By
sending emails which are pitching upsell and cross-sell.
· By
redirecting the consumer to the desired web page or targeted advertisement
based on Consumer data.
5.
Easier
to encourage an impulse buy: Impulse buying is an
important tool in the arsenal of the sellers where it works as a path for
consumers to act as per their choices towards particular products. It plays on
the psychological behaviour of humans where some of us have personality traits
that encourage impulse buying. It is often because of the urge to feel good,
and at the same time the attempt at deriving emotional value from certain
products makes them feel good; or things that have an emotional value.
6.
Reviews
Available: The review system allows the consumer to make
decisions as well as pass judgement on a wide range of variables. The presence
of positive comments or a higher rating of one's business not only adds value,
it also builds trust of the consumer on the product as well as the business.
This not only projects the business as transparent, it helps the consumer to
voice their opinion about their choices in products.
7.
Detailed
information available for the consumer: The availability of
detailed information is one of the key strengths of e-commerce. All consumers
are always seeking detailed insights into the product they are interested in as
it aids them in making an informed decision. The availability of information
allows the consumer to gauge the relevance and value of the product or service
according to their needs. It is the detailed description of the product that
helps the consumer to make a confident choice according to their requirements.
8.
Quality
service at reasonably low operation cost: Operational costs
are a major expenditure when it comes to asserting the physical presence of any
businesses. Usually for a business to maintain a physical presence, they have
to pay a lot of money in the form of rent, salaries for employees, maintenance
and other expenses. E-Commerce plays an important role in reducing the cost of
operations significantly by eliminating a significant part of that expense as
the business does not have to rely on a physical presence to provide quality
service.
9.
Quick
and affordable marketing: E-commerce provides a cost effective
way to businesses for marketing anything effectively. This is in contrast to
the expensive and time consuming processes used in physical marketing
practices.
10. E-Commerce has flexibility with 24/7
service capability: Flexibility in terms of both accessibility
and affordability are major areas where Ecommerce is powerful than conventional
stores and retail spaces as it allows the service to consumer 24/7. It is not
only the capability of providing a shopping option round the clock, E-Commerce
also helps consumers with chat support, provide recommendations and identify
products being sought by the consumer at any time and place.
Disadvantages
of E-Commerce
The various disadvantages of E-Commerce are discussed
below:
1.
Lack of personal touch: One of the thing that play a huge
role in consumer satisfaction is the ability to personally view and touch any
product. It is an important factor when it comes to customer satisfaction as
even the best detailed, expressed and explained products can fail to convince
and attract the consumer.
2.
Unsure about the quality: When it comes to purchasing products
online, it is difficult for the consumer to determine its quality. It is also
common knowledge that there has been malpractice when it comes to fake reviews
to artificially boost sales and of a low quality or faulty product.
3.
Late Delivery: One of the assurances of businesses
practicing ECommerce is the delivery time of the product. There are a whole
range of issues that can arise when it comes to the delivery of the purchased
product; hence businesses avoid giving exact delivery dates and try providing
windows for the same. Many times, this results in the consumer waiting for the
product for more than the assured period of time.
4.
Difficulty in purchasing some products: Some precious products
such as gold and customised products like made-to-order furniture (because of
measurement issues) are difficult to be purchased online. Trust is an important
factor when it comes to these products, and the lack of ability to verify them
physically could serve as a hindrance in purchasing such products online.
5.
Site crash issues: There is still some uncertainty when it
comes to the functioning of servers and the availability of round the clock and
quality internet service. This can create a lot of hindrance from sales
perspective, and can result in loss of consumers as they might have to wait for
an unspecified period of time to proceed with transactions.
6.
Cybercrime and Data privacy issues: Last but not the least,
ecommerce is prone to cyber security threats as well as data breaches typical
to the cyber world. E-commerce web portals than any other online information,
as these sites/portals store users’ data including financial and other personal
details of the buyers and the sellers. Hence there is a constant challenge of
securing this data from a wide range of security challenges including malware,
hacking, ransom ware as well as misuse of personal sensitive information /
preferences for targeted marketing / campaigning etc.
Q – State the Types of
E-Commerce.
Ans.
TYPES OF E-COMMERCE
Many different models of electronic transactions exist
in the world of e commerce today. Generally, these are classified as B2B
(Business-to Business), B2C (Business-to-Consumer), C2C (Consumer to consumer),
C2B (Consumer-to-Business), B2G (Business-to-Government/Administration), C2A
(Consumer to Administration), P2P ( Peer 2 Peer), Direct to consumer (D2C)
1.
B2B:
Business-to-Business Model of E-Commerce
In business-to-business (B2B) type of
e-commerce system, companies that are
involved in the supply chain, such as a manufacturer selling a product to a
wholesaler, the wholesaler selling the product to a retailer, all come together
to conduct business with each other using a common portal. In such an instance,
the manufacturer could have a website / web portal that could also be used by
the wholesaler to place orders for the product; this order could then be
processed and sent to the wholesaler. The Wholesaler could further use the same
portal to advertise the product or take orders from a retailer for the same.
2.
B2C:
Business-to-Consumer Model of E-Commerce
This model of e-commerce is understood
to be the process where a company or business sells their goods, services and
products directly to the buyer using Internet. The buyer has the liberty of
browsing through the Internet to filter, check and view products and then order
them. After receiving an order, the company proceeds to process and send the
order directly to the buyer.
Popular examples of B2C are ‘Amazon’,
and ‘Flipkart’. It is important to note that majority of the e-commerce
companies do not manufacture products or produce these services, but rather
list them on their website/ web portal for payments.
3.
C2C:
Consumer-to-Consumer Model of E-Commerce
This form of e-commerce is understood
to be a model where consumers sell goods, services and products to another
consumer using web technologies and the internet. This model comprises the
selling of a wide range of products including movable assets and properties.
Companies such as ‘Quicker’, ‘OLX’ and
so on are some examples of this model of C2C e-commerce.
4.
C2B:
Consumer-to-Business Model of E-Commerce
Unlike ‘B2C’ model, it is a type of
commerce where consumers themselves provide goods, services and products to an
organization (or business) as illustrated below.
There is another version of this
model; in this version, the consumer create and utilize their own social media
profiles (blogs etc.) to link back to the product sold on the company's
ecommerce website / web portal, thereby consumers facilitates the sale of
company’s products and are usually rewarded by these companies for doing so.
5.
B2G:
Business-to-Government Model of E-Commerce
Business-to-government, also known as
business-to-administration, refers to trade between the business sector as a
supplier and a government body as a customer. This kind of e-commerce refers to
the situation where businesses conduct commerce with the government; it is
essentially a part of the ‘B2B’ model.
The business network provides a platform
to businesses to bid on government opportunities such as auctions, tenders and
application submission and so on for various services etc. These activities are
increasingly being conducted through the internet using real time bidding. “
Government e-MarketPlace - GEM” portal by Government of India, is an example of
the same
6.
C2A:
Consumer-to-Administration Model of E-Commerce
The model refers to the e-commerce
process followed by the consumers when interacting directly with the government
agencies. This may be in the form of payments, information access requests or
feedback to various agencies among other things. Consumer to
government/administration model for e-commerce is the ideal answer for
establishing communication between the consumers and the government.
Examples of ‘C2A’ models include
e-government applications such as payment of utility bills including
electricity and water, tax payments, health insurance payments made using web
and mobile applications.
7.
P2P:
Peer-to-Peer Model of E-Commerce
P2P model is essentially a networked
model of commerce without any intermediary. It is therefore a distributed
platform enabling different individuals to partake in transactions with each
other without an in-between third party. This model of network arrangement is
different from the client server model where communication takes place from the
central server.
These services may be operated as free
non-profit services or generate revenue by advertising to users or by selling
users data. Some examples of ‘P2P’ services are open-source software, online
marketplaces, crypto currency and Block-chain, ridesharing and so on.
8.
D2C:
Direct-to-Consumer Model of E-Commerce
Direct-to-consumer refers to selling
products in a straight line to customers, bypassing any third-party retailers,
wholesalers, or any other middlemen.
Direct-to-consumer companies are
transforming how people shop. In the progression, these brands, spanning
everything from detergent to sneakers, are radically changing consumer
preferences and expectations. In addition to establish a direct relationship
with customers, these brands are building a community of ambassadors on social
media.
D2C brands are usually sold online
only and specialize in a specific product category: Casper, Warby Parker,
Everlane, Harry’s, Outdoor Voices, AWAY, and Dollar Shave Club.
Q – State the Key Elements of
a Business Model.
Ans.
KEY ELEMENTS OF A BUSINESS MODEL
To ensure that all these basic questions are adequately
addressed, following are some simple steps to create a strong business model.
1.
Identify your specific audience: Targeting a wide audience
won’t allow a business to identify the right customers, who truly need and want
the product or service. Instead, when creating a business model, narrow down
the audience (expected buyers) number to two or three and do detailed study of
the buyer personas. Outline each persona’s demographics, common challenges and the
solutions of the company that it will offer.
2.
Establish business processes: Before the business can
go live, make a clear understanding of the activities required to make the
business model work. It is important to determine the key business activities
to establish a proper business process. The first step is to identify the core
aspects of the business’s offering.
3.
Record key business resources: What does a company need
to carry out during daily processes, find new customers and reach business goals?
Document essential business resources to ensure the business model is
adequately prepared to sustain the needs of the business. Common example that a
business may need includes a website, capital for the business to start
running, warehouses, intellectual property and the customer lists.
4.
Develop a strong, preferably a unique value proposition:
For standing among other competitors a company needs to provide some additional
value proposition to the customers in the form of an innovative service, or a
revolutionary product. Value proposition is about giving the value to the
business and how it stands out from other businesses in the market. Once the
business has got a few value propositions, then it is important to link each of
them to a service or product delivery system to determine how the business
would remain valuable to the customers over time.
5.
Determine key business partners: No business can function
properly (let alone reach established goals) without key partners that donate
to the business’s ability to serve customers. While building a business model
it is significant to choose the key partners like for example suppliers,
strategic alliances, or advertising partners.
Keeping these five elements in mind, will lead to the
creation of a solid business model capable of fuelling the success of a new
business entity.
Q – State the impact of a
pandemic on E-commerce businesses.
Ans. IMPACT OF COVID ON e-COMMERCE
The corona virus pandemic has considerably changed the
shopping behaviour of consumers for two valid reasons- firstly the shopping
sprees got reduced due to lockdowns and secondly the downward spiral of economy
curtailed the expenditures.
However, in this transition, online stores became more
popular. Even those who had not gone online to shop now realised that they
could buy essential commodities from the safe confines of their homes. These
FTUs (First Time Users) on e-commerce sites also suddenly became aware of
massive discounts/ bargain deals available online, which probably would have
never come their notice earlier. As a result, quite a lot of consumers have
switched from shops, supermarkets, and shopping malls to online portals for the
purchase of products, ranging from basic commodities to branded goods, even
when the covid-imposed lockdowns have been lifted.
However, this is just the tip of the ice-berg- COVID
and Digitilisation have more to unfold in e-commerce sector than what we can
see now. Only future would tell.
Q – What are e-Commerce
revenue models? Explain their various types.
Ans.
E-COMMERCE REVENUE MODELS
E-commerce not only involves doing business over the
internet, it is also about designing new profitable business models. After we have
understood some of the important implementation strategies for e-commerce
businesses, we would move on to understand possible modes of income generation
in ecommerce implementation. This is best explained by the revenue model
defining the e-commerce implementation.
1. Advertising Revenue Model:
Revenue in e-commerce businesses could be primarily generated by hosting
advertisements of other products/ services on online stores; this is the most
basic model of revenue generation referred as Advertising Revenue Model.
This model provides content and
services like email, chat, etc. mixed with advertising messages in the form of
banner ads. The advertising model only works when the volume of viewer traffic
is large or high. The banner ads may be the major or sole source of revenue for
the broadcaster.
2. 2. Affiliate Revenue Model:
It is a very popular variation to the
advertising revenue model that is based on pay-for-performance Concept.
In this concept the sellers put advertisement of their products as ‘links’ on
websites of their partners, also called affiliates. Payments are made to the
sellers when the links are clicked, and orders are placed and in return the
partners/ affiliates get some part of the revenue.
3. Transaction Fee Revenue Model:
There are certain e-commerce sites, such as OLX, e-bay who charge a transaction
fee from its users. This transaction could be either fixed or could be in terms
of percentages of the volume of transactions undertaken.
4. Sales Revenue Model:
Sale of products/ services itself generates revenues for the sellers (who could
be a retailer or wholesaler) who sell their products online.
Q – State the Essential
Technology Features Required in E-Commerce.
Ans.
ESSENTIAL TECHNOLOGY FEATURES REQUIRED IN E-COMMERCE
Essential features of technology required while
designing e-Commerce are explained as follows:
1.
Ubiquity: E-commerce is ubiquitous i.e. it can be accessed from
everywhere and at anytime. It is not restricted to any physical space and makes
it possible to shop anytime, anywhere using any electronic device
(laptop/desktop/mobile phone/tablet) having internet connectivity.
2.
Global Reach: The technology has eliminated the national
boundaries. In e-commerce businesses, potential market size is almost equivalent
to the global population.
3.
Universal Standards: Another obvious unusual feature of
e-commerce technologies is there is one set of technical standards of the
internet that is universal standards. The Internet is shared at the global
level by all nations, it enables any computer to link with any other computer
regardless of the technology platform used by each one of them. Using the
universal standards files can be easily exchanged with any remote device across
globe.
4.
Richness: Advertising and branding are an important part of
commerce. E-commerce can deliver video, audio, animation, billboards, signs and
etc like traditional commerce. Information and the contents are rich can be
delivered without sacrificing the reach.
5.
Interactivity: E-commerce technologies allow for
interactivity, meaning they enable two-way communication between the merchant
and the consumer.
6.
Information Density: Ecommerce technology reduces the
information collection, storage, communication, and processing cost. At the same
time, it has increased the accuracy of quality information, making information
more useful and important than ever.
7.
Personalization: E-commerce technology allows for
personalization. On the basis of name, interests, and past purchase behavior
products can be customized and personalized, further, this collected
information could be used for sending marketing and promotional messages to the
targeted customers.
Q – State the Advantages of
employing digital technologies in Governance.
Ans.
1. Fast and convenient service to citizens: Citizens can have
easy and quick access to the related information regarding to all the public
services by applying for any service online on web portal/ apps developed by
the government. Further he/she can get documents easily in electronic form or
hard copy as per the requirement, so there is no more waiting in the long
queues. In other words, citizens can take advantage of many other online
services just on a click of mouse and the public services are available to them
at their doorsteps by minimising their transaction costs and travelling costs.
2.
Reduction in delays, red tapism, and corruption:
Implementation of e-government ande-governance lowers several other related
bureaucratic problems such as long processes, personal grudges of the delivery
officers and so on. With implementation of digital technologies, there is
improvement in transparency in public processes and clear accountability of the
government functionary in charge of that process. It not just fastens the
processes but also reduces corruption that could come up in manual processes.
3.
Effective utilization of resources: Resource utilization is
optimised through effective implementation of digital technologies in public
domain due to the speed and efficiency provided by digital technologies. This
kind of utilization is not possible with manual paperwork and manual processes,
otherwise used in government organisations.
4.
Enhanced citizen participation: In a democratic system,
citizen participation is one of the key components of decision-making process.
The use of Internet based technologies raises the possibility for largescale
citizen participation in policy making process of government, despite the
distances and diversity of the population.
5.
Integration of public services of offered by different departments:
By using digital technologies, different departments and different functions
could be connected. This integration of public services offered by state and
central government provides ease of access of public services to the citizens.
Indeed, the growth of e-governance and e-government has
been one of the most striking and noticeable developments in governance and it
would be interesting to understand how different public organisations or even a
country evolves from the most basic stage of employing digital technologies in
governance to the higher stages. This is explained in the next section by
referring to the Gartner’s evolution model of e-government.
Q – State the Merits of
e-Payment System.
Ans.
MERITS OF E-PAYMENT SYSTEM
E-payment systems are made to facilitate the acceptance
of electronic payments for online transactions. With the growing popularity of
online shopping, e-payment systems became a must for online consumers — to make
shopping and banking more convenient. It comes with many benefits, such as:
· Reaching
more clients from all over the
world, this result in more sales.
· More effective and efficient
transactions — It’s because transactions are made in
seconds (with one-click), without wasting customer’s time. It comes with speed
and simplicity.
· Convenience.
Customers can pay for items on an e-commerce website at anytime and anywhere.
They just need an internet connected device. As simple as that!
· Lower transaction cost
and decreased technology costs.
· Expenses control for customers,
as they can always check their virtual account where they can find the
transaction history.
· Today
it’s easy to add payments to a website,
so even a non-technical person may implement it in minutes and start processing
online payments.
· Payment
gateways and payment providers offer highly effective security and anti-fraud tools to make transactions
reliable.
Q – State the Types of Payment Methods. Explain.
Ans.
TYPES OF PAYMENT METHODS
There are various types of payment gateways consumers
are using. It can be possible in brick-and-mortar which we usually call
physical stores and shopping online which we call click-and-mortar stores. In
physical stores, payment gateways consist of the point of sale (POS) terminals
used to accept payments by card or by phone. In online stores, payment gateways
are the “checkout” portals used to enter credit card information or credentials
for services such as Google Pay, Amazon Pay, Facebook Pay and WhatsApp Pay.
Using multiple gateways make great business sense when you considering the
flexibility it gives to your team. There are various kinds of Epayment present
in a market, some are mentioned below:
· Automated
clearing house.
· Wire
transfers.
· Item
processing.
· Remote
deposit capture.
· FedLine
Access Solutions.
· Automated
Teller Machines.
· Card
Services (ATM, credit, debit, prepaid)
· Mobile
payments
· Crypto
currency
On the other hand
E-payment methods could be further classified into two areas, credit payment
systems and cash payment systems which we usually called Pre Paid & Post
Paid E-Payment System.
Prepaid refers to the
scheme in which you buy credit in advance before availing services. Post-paid
is defined as a scheme in which the customers are billed at the end of the
month for the services availed by them. Examples include plastic card, on-line
transactions, concerned bank, performed by phones or by filling form on the
website, Cyber Cash, encrypted payment, Internet Cheques, cheques for deposit,
Process them internally, and clear and settle between banks, cheques
handwriting signatures.
Credit
Cards
Credit card is a plastic card which is issued by a
bank. It is issued to customers of high credit ranking, the necessary
information is stored in magnetic form on the card. A card holder can purchase
the item from the shop or the showrooms and need not pay cash. He has to flash
the card in machine at the place where he is making purchases. Banks issue
credit card to the customers up to a certain limit. The customers can purchase
goods/services from the authorized showrooms without carrying physical cash
with them. The bills are presented by the showroom to the authorized branch.
This bill is presented by the paying branch to the issuing branch.
Cyber
Cash
Unlike Credit card, Cyber Cash is not directly involved
in handling funds. In Cyber cash system, after deciding what is to be purchased
the customer makes payment to the merchant through credit card without
disclosing the credit card number to him. The credit card number is sent to the
merchant in encrypted form. The merchant forward the encrypted payment with his
private key to the bank's Cyber Cash gateway server. The bank's Cyber Cash
gateway server decrypts the information, processes the transaction and forward
it to the merchant's bank.
Internet
Cheques
A cheque is a signed paper document that orders the
signer's bank to pay an amount of money to a person specified on the cheque or
bearer from the signer's account on or after a specified date. Cheques pass
directly from the payer to the payee, so that the timing or the purpose of the
payment is clear to the payee. The payee can deposit the cheque in an account
of his choice or cash it. Banks operate extensive facilities to accept cheques
for deposit Process them internally and clear and settle between banks.
Smart
card
It is a plastic card with a microprocessor that can be
loaded with funds to make transactions; also known as a chip card.
E-wallet
It is clear that mobile wallets are slowly making a
mark as a form of payment method, but cash still remains to be an imperative
necessity for consumers.
Q – Comment on the Following
a)ACH b)RTGS c)IMPS
d)UPI
Ans.
a) AUTOMATED CLEARING HOUSE
Automated Clearing House (ACH) is a computer-based
electronic network that coordinates electronic payments and automated money
transfers i.e processes transactions, usually domestic low value payments,
between participating financial institutions. ACH is a way to move money
between banks without using paper checks, wire transfers, credit card networks,
or cash. ACH and EFT payments are similar in that they are both forms of
electronic payments. However, EFT refers to all digital payments, whereas an
ACH is a specific type of EFT. An ACH payment occurs when money moves from one
bank to another bank. This money moves electronically, through the Automated
Clearing House Network. In India National Automated Clearing House, or NACH,
introduced by National Payments Corporation of India, is a centralized clearing
service that aims at providing interbank high volume, low value transactions
that are repetitive and periodic in nature. Most people already use ACH
payments, although they might not be familiar with the technical jargon. When
employers pay wages through direct deposit or consumers pay bills
electronically out of checking accounts, the ACH network is often responsible
for those payments. These computerized payments have benefits for both
merchants and consumers as explained below:
1. Lower costs: ACH payments use fewer resources than
traditional paper checks. There’s no need for paper, ink, fuel to transport
checks, time and labor to handle and deposit checks, and so on.
2. Recordkeeping Convenience: Electronic transactions
make it easy to keep track of income and expenses. With every transaction,
banks create an electronic record. Accounting and personal financial management
tools can also access that transaction history.
3. Convenience: ACH is more convenient and easier to
use as compared to the other methods of payment.
4. Customer’s preference: ACH is preferred because of
security, reduced human error and increase time savings, Faster processing
time.
b)
RTGS (Real Time Gross Settlement)
Money can be transferred from one bank to another on a
real-time basis using Real Time Gross Settlement or RTGS method. There is no
maximum transfer limit, but the minimum is Rs. 2 lakhs. The transactions are
processed throughout the RTGS business hours. Usually, the amount is remitted
within 30-minutes. To be able to transfer money through RTGS, it is required
for the sender and the receiver bank branch to be RTGS enabled. It costs a
little more than NEFT. But still, it will not cost you more than Rs. 30 for
transactions up to Rs. 5 lakhs. The fee varies from one bank to another.
Various requirements for conducting a RTGS are:
· Amount
to be sent
· Account
number of the remitter or sender
· Name
of the recipient or beneficiary
· Account
number of the beneficiary
· Beneficiary’s
bank and branch name
· IFSC
code of the receiving branch
· Sender
to receiver information, if any
c)
IMPS (Immediate Payment Service)
An IMPS sends instant payments. The money is
transferred instantaneously through mobile phones using this interbank electronic
fund transfer service. You can make the transactions 24x7x365 across banks
including all weekends and bank holidays. The money can be transferred using
phones, ATMs, Mobile Money Identifier (MMID) and internet banking. The idea is
simple to allow users to make payments with the mobile number of the
beneficiary. Various requirements for conducting IMPS are:
· MMID
of the Recipient
· 7
Digit MMID Number
· MMID
of the receiver
· Name
of the beneficiary
· Beneficiary’s
mobile number
· Account
Number of the recipient
· IFSC
Codes of the beneficiary bank
d)
UPI
Unified Payments Interface is an instant real-time
payment system developed by National Payments Corporation of India facilitating
inter-bank transactions. The interface is regulated by the Reserve Bank of
India and works by instantly transferring funds between two bank accounts on a
mobile platform.
Unified Payments Interface is a real time payment
system that allows sending or requesting money from one bank account to
another. Any UPI client app may be used and multiple bank accounts may be
linked to single app. Money can be sent or requested with the following
methods:
· Virtual
Payment Address (VPA) or UPI ID: Send or request money from/to bank account
mapped using VPA.
· Mobile
number: Send or request money from/to the bank account mapped using mobile
number.
· Account
number & IFSC: Send money to the bank account.
· Aadhar:
Send money to the bank account mapped using Aadhar number.
· QR
code: Send money by QR code which has enclosed VPA, Account number and IFSC or
Mobile number.
Q – State the differences
between HTTP and HTTPs.
Ans.
Following are the difference between HTTP and HTTPS.
|
HTTP |
HTTPS |
|
The full form of HTTP is Hypertext
Transfer Protocol. |
The full form of HTTPS is Hypertext
Transfer Protocol Secure. |
|
An HTTP URL begins with http:// |
An HTTPS URL begins with https:// |
|
It uses port number 80. |
It sends the data over port number
443. |
|
HTTP is an application layer
protocol. |
HTTPS is a transport layer protocol. |
|
Less secure and vulnerable to
hacking attacks. |
It is highly secure. |
|
It does not contain an SSL
certificate. |
HTTPS contains an SSL certificate. |
|
HTTP websites do not use data
encryption. |
HTTPS websites use data encryption. |
|
It is fast. |
It is slower than HTTP. |
|
HTTP does not help in improving
search rankings. |
HTTPS provides SEO advantages as
Google gives the preferences to websites that use HTTPS. |
Q – What is web hosting? What
are the various types of web hosting?
Ans.
WEBSITE HOSTING
A web hosting service is a type of Internet hosting
service that allows individuals and organizations to make their website
accessible via World Wide Web. Web hosts are companies that rent out their
services and technologies to host websites on the internet.
A space on a web server is allocated to store the files
by the hosting provider. Web hosting makes the files available for viewing
online. Web hosting provides services and infrastructure to develop, store, and
deploy globally available websites and web apps in the cloud so startups can
focus on applications and users.
Types
of Website Hosting
Various types of web hosting services are explained in
detail below:
1. Shared hosting:
Shared hosting is perfect for entry-level website hosting. With a shared hosting
plan, all domains share the same server resources, such as RAM (Random Access
Memory) and CPU (Central Processing Unit). However, because all resources are
shared, the costs of shared hosting plans are relatively low, making them an
excellent option for website owners in their beginning stages. Although shared
hosting provides website owners with a more simplistic approach to the web.
This means that surges in usage can ultimately affect the website’s user
experience.
2. Virtual private server (VPS) hosting: A
VPS hosting plan is the ultimate middle ground between a shared server and a
dedicated server. It is ideal for website owners, who need more control, but do
not necessarily need a dedicated server. VPS hosting is unique because each
website is hosted within its own space on the server, though it still shares a
physical server with other users. VPS hosting provides website owners with more
customization and storage space.
3. Dedicated server hosting:
Dedicated hosting gives website owners the most control over the server on
which their website is hosted. Dedicated servers’ cost is one of the most
expensive web hosting options. They are mostly used by website owners with high
levels of website traffic, and those who are in need of complete control of their
servers. In addition, a high level of technical expertise is required for the
installation and ongoing management of the server.
4. Cloud hosting:
Cloud hosting is the current buzzword of the technology industry. In Web
hosting, it means many computers working together, running applications using
combined computing resources. This allows users to employ as many resources as
they need without having to build and maintain their own computing
infrastructure. The resources that are being used are spread across several
servers, reducing the chance of any downtime due to a server malfunction.
5. Managed hosting:
The user gets his or her own Web server but is not allowed full control over it
(user is denied root access for Linux/administrator access for Windows); however,
they are allowed to manage their data via FTP or other remote management tools.
The user is disallowed full control so that the provider can guarantee quality
of service by not allowing the user to modify the server or potentially create
configuration problems.
6. Co-location web hosting service:
Co-location web hosting service is similar to the dedicated web hosting
service, but the user owns the co-server; the hosting company provides physical
space that the server takes up and takes care of the server. This is the most
powerful and expensive type of web hosting service. In most cases, the
co-location provider may provide little to no support directly for their
client's machine, providing only the electrical, Internet access, and storage
facilities for the server.
7. Clustered hosting:
Cluster hosting allows multiple servers hosting the same content for better
resource utilization. Clustered servers are a perfect solution for
high-availability dedicated hosting, or creating a scalable web hosting
solution. A cluster may separate web serving from database hosting capability.
Usually, web hosts use clustered hosting for their shared hosting plans, as
there are multiple benefits to the mass managing of clients.
8. Grid hosting:
Grid hosting is a service that provides grid computing Capabilities to its
clients This form of distributed hosting is adopted when a server cluster acts
like a grid and is composed of multiple nodes. Much like cluster hosting, grid
hosting makes it less likely that a spike in resource needs will take site
offline.
Q – What are the Strategies
for developing e-commerce websites?
Ans.
STRATEGIES FOR DEVELOPING ECOMMERCE WEBSITES
The commerce industry is growing with rapid speed as
growth rate is continuously increasing. The process of e-commerce website
development project are categories into seven major steps which are as follows:
1.
Identify the product/service, and the customer:
The first step for ecommerce website development is to identify the
products/services which the company wants to sell in the market to the target
population. As it is essential to identify which products are to be sold and to
whom.
2.
Know your e-commerce customer: KYeC is vital for any
business to understand who their customer is for success in the long run. So,
they can allure them in the best possible way. One way to obtain this is by
evaluating the customers of the competitors.
3. Choose the right e-commerce website
development platform: Appropriate e-commerce platform is a software suite
that aids build the e-commerce store where marketers make their products
available, and customers can process transactions. Choosing the right
e-commerce platform is vital to any online business as it is the very
foundation of the business.
4.
Choose the right e-commerce website hosting platform:
Business success and failure choice of server and hosting are a crucial factor.
It determines the website’s accessibility and performance efficiency. Costs
cutting are an important factor while deciding about website hosting and
support; outsourcing can be exercised.
5.
Choose the right e-commerce development partner:
Choosing for e-commerce technology development partners or e-commerce vendors
can be very difficult. The market is very crowded with service providers and
with each one claiming to offer the services which suit best to company needs.
6.
E-commerce website testing: After completion of the website
development, the next crucial step is e-commerce website testing. Testing
checks usability, customer convenience, checks for bugs, and is important to
providing a good shopping experience. Testing is usually implemented in various
browsers, across platforms, and across devices. Websites can be tested
manually, or automatically, or a combination of the two followed by feedback.
7.
Effective marketing: E- marketing plays a crucial role at this
stage, it is important to advertise it to people. For advertising the website,
marketers need to have a promotional plan drafted out including all means of
advertising. In a crowded market of business owners competing for customers’
attention, it is hard to get new customers or sustain existing ones without
proper marketing.
Q – What are utility
programs? What are the different types of utility programs?
Ans.
Utility
program is a system application that executes a specific task, generally
pertaining to optimal maintenance or operation of the system resources.
Operating systems such as Windows, macOS and Linux come with their own set of
utility programs to maintain and execute different utility functions such as
formatting, compressing, scanning, exploring and much more. Utility programs
also assist with the management of computer functions, resources and files. one
can ensure complete password protection and keep systems virus free using
different utility programs.
Types
of Utility Programs
Various functions are executed by a utility program to
make the system’s operations smoother and more efficient. Overall, utility
programs can be broadly categorized into four parts:
1. System Utilities: Some of the system utility
programs are memory manager, antivirus and firewall, registry checker and
cleaner, package installer and explorer. Also, with the help of such system
utility programs, users can execute functions that are crucial for smooth
running of an operating system.
2. File Management Utilities: File management utilities
include tools such as data archives, software backup tools, file compression
tools and managers. With the help of these, users can manage their data in the
form of files and folders. These utilities help users to sort out, store and
categories files according to the requirement.
3. Storage Device Management Utilities: Storage device
management utility programs provide solutions for enhancing disk capacity, such
as disk clean-up, partition management, formatting, disk space allocation,
defragmentation, etc. With the help of this utility program, users can
compartmentalize systems and external drives for efficient management of
programs and files that are stored within.
4. Miscellaneous Utilities: Apart from these three
utility program categories, there are various other programs that help in
managing business operations. Some of these programs include data generators,
HTML checkers and hex editors, to name a few.
Q – What is an operating
system? Explain the two most commonly used operating systems.
Ans.
OPERATING SYSTEM
In our preceding course BCOS-183 we had elaborately
defined the term Operating system. An Operating System (OS) is an interface
between computer user and computer hardware. The foundational software on a
server is the operating system. Commonly speaking, it is the basis on which
everything else you use runs. Without an operating system, the server is just a
collection of electronics that does not identify how to communicate with the
rest of the humankind. An operating system is software which performs all the
basic tasks like file management, memory management, process management,
handling input and output, and controlling peripheral devices such as disk
drives and printers. A web Server software must match with Operating System.
Windows
Microsoft Windows, commonly referred to as Windows, is
a group of several proprietary graphical operating system families, all of
which are developed and marketed by Microsoft. Each family caters to a certain
sector of the computing industry. If you use The Official Microsoft ASP.NET
Site, MS SQL or Access databases you need Windows hosting because those
technologies are not available on other platforms. The support for traditional
Asp is better on Windows and ColdFusion hosting is most common on Windows
servers, even though ColdFusion runs just as nice on Linux. On the downside,
Windows servers are more exposed to viruses and hacker attacks. Windows hosting
is also more expensive, and Windows servers tend to crash a bit more often.
Windows also takes more server resources than Linux, resulting in fewer hosting
accounts on each server and higher prices.
Linux
With Linux, one get a stable server platform with high
security and no threatening viruses. Linux is free, and does not take as much
server resources as Windows, so Linux hosting is cheaper.
It provides a good selection of scripting languages
(most are also supported by Windows servers). The most common database solution
for Linux is MySQL, which also is open source and works great. PostGreSQL is on
its way to Windows, but not quite there yet. And with the great selection of
free online resources, Linux hosting is the best choice for most self-taught
webmasters and businesses too. Ubuntu or Fedora was the most common choice.
Q – What is a mail server?
What are different types of E-mail servers?
Ans. A mail server (sometimes
also referred to an e-mail server) is a server that handles and delivers e-mail
over a network, usually over the Internet. A mail server can receive e-mails
from client computers and deliver them to other mail servers. A mail server can
also deliver e-mails to client computers.
Types
of E-mail Server
When we use the term email server in the sense of
services or we can separate email servers into 2 main categories: outgoing
email servers and incoming email servers.
1.
SMTP: Outgoing email servers are called
SMTP servers. for Simple Mail Transfer Protocol. guidelines that allow software
to transmit an electronic mail over the internet. It is a program used for
sending messages to other computer users based on e-mail addresses.
2.
POP3: Incoming email servers are known
by the acronyms POP3 (Post Office Protocol). In computing, the Post Office
Protocol is an application-layer Internet standard protocol used by email
clients to retrieve e-mail from a mail server. POP version 3 is the version in
common use.
3.
3. IMAP (Internet Message Access
Protocol): IMAP (Internet Message Access Protocol) is a standard email protocol
that stores email messages on a mail server, but allows the end user to view
and manipulate the messages as though they were stored locally on the end
user's computing device(s).
In general, IMAP is more
complex and flexible than POP3. With IMAP, messages are stored on the server
itself. While with POP3, messages are usually kept on the device, that is, on
your computer or cell phone.
Q – Why is Cyber security
Important?
Ans.
In today’s attached world, one and all benefits from advanced cyber defense
programs. At an individual level, a cyber-security attack can upshot in
everything from identity theft, to extortion attempts, to the loss of important
data like family photos. Each person relies on critical infrastructure like
power plants, hospitals, and financial service companies. Securing these and
other organizations is essential for keeping our society functioning. On the
other hand educating the public on the significance of cyber security, and
build up open source tools which will make the Internet safer for everyone.
Q – What do you understand by
Cyber Threats? Explain It’s Various Types.
Ans.
Cyber Threats For a cyber-security expert, the Oxford
Dictionary definition of cyber threat is a little lacking it’s given as the
"the possibility of a malicious attempt to damage or disrupt a computer
network or system." This definition is incomplete without including the
attempt to access files and infiltrate or steal data. In this definition, the
threat is defined as a possibility. However, in the cyber security community,
the threat is more closely identified with the actor or adversary attempting to
gain access to a system. Or a threat might be identified by the damage being
done, what is being stolen or the Tactics, Techniques and Procedures (TTP) being
used.
Type
of Cyber Threats
In our modern technology-driven age, keeping our
personal information private is becoming more difficult. The truth is, highly
classified details are becoming more available to public databases, because we
are more interconnected than ever. Our data is available for almost anyone to
shift through due to this interconnectivity. This creates a negative stigma
that the use of technology is dangerous because practically anyone can access
one’s private information for a price. Technology continues to promise to ease
our daily lives; however, there are dangers of using technology. One of the
main dangers of using technology is the threat of cybercrimes.
1.
Computer Viruses: A computer virus is a program written to
alter the way a computer operates, without the permission or knowledge of the
user. A virus replicates and executes itself, usually doing damage to the
computer in the process. It is perhaps the most well-known computer security
threat. Carefully evaluating free software downloads from peerto-peer file
sharing sites, and emails from unknown senders are crucial to avoiding viruses.
Most web browsers today have security settings which can be ramped up for
optimum defense against online threats. But, single most-effective way
offending off viruses is up-to-date antivirus software from a reputable
provider.
2.
Spyware Threats: A serious computer security threat,
spyware is any program that monitors your online activities or installs
programs without the consent for profit or to capture personal information.
While many users won't want to hear it, reading terms and conditions is a good
way to build an understanding of how your activity is tracked online. And of
course, if a company don't recognize is advertising for a deal that seems too
good to be true, be sure that we have an internet security solution in place
and click with caution.
3.
Hackers and Predators: Hackers and predators are programmers
who victimize others for their own gain by breaking into computer systems to
steal, change, or destroy information as a form of cyber-terrorism. These
online predators can compromise credit card information, lock you out of your
data, and steal your identity. As we may have guessed, online security tools
with identity theft protection are one of the most effective ways to protect
yourself from this brand of cybercriminal.
4.
Phishing: Phishing attacks are some of the most successful
methods for cybercriminals looking to pull off a data breach. Masquerading as a
trustworthy person or business, phishes attempt to steal sensitive financial or
personal information through fraudulent email or instant messages. Antivirus
solutions with identity theft protection can be used to recognize phishing
threats in fractions of a second.
Q – What are the various Security Barriers faced
by the companies? How MSSPs can help solve them ?
Ans.
SECURITY BARRIERS
While there are hard costs associated with security
incidents in terms of lost data or ransom paid, executive leadership also needs
to be prepared for other business impacts such as brand erosion, loss of
customer goodwill, shareholder disappointment and earnings volatility, all of
which can incur costs months and even years after an initial security incident.
Everyone knows that they need to secure their networks and systems, but
enterprises which are lacking IT resources, dwindling budgets and the sheer
volume of risk to manage; handling security nowadays has become a seemingly
insurmountable task. Consequently, more and more businesses are looking towards
Managed Security Service Providers (MSSP) for help. Here are three common
security challenges companies face and how MSSPs can help solve them.
1. Specialized talent shortage:
There is a shortage of qualified IT security staff, making it difficult for
management to attract and recruit qualified personnel. Escalating salary
requirements further complicate the situation. Consequently, many companies
skip some of the security management basics simply because they don’t have the
time or staff required to implement these practices, making them prime hacking
targets. An MSSP (Managed Security Service Provider) can operate in a variety
of capacities and fill in whatever security gap a company may have. This
includes not only devising a security and compliance strategy for networks and
devices but taking over daily security management. By partnering with an MSSP,
not only do you have access to a dedicated and specialized workforce, but you
also benefit from a team of experts that understands the dynamic security
landscape and the latest threats. Just as you would depend on a CPA (Certified
Public Accountant) to manage your tax filing because of their knowledge of tax
law, an MSSP can provide a level of security expertise that is hard to obtain
on your own.
2.
Prioritizing
risk: There’s no such thing as perfect protection, rather,
it’s a matter of appropriately managing risk and making a conscious decision
about what to do, and perhaps more importantly, what not to do. For example,
while you may be dedicated to building a digital fortress with multiple levels
of security, the sheer volume and variety of threats make it difficult to
assess your current vulnerabilities and to plan an appropriate course of
action. An MSSP can identify your security vulnerabilities and compliance
requirements and help you implement a plan that’s unique to your organization
and business situation. From there, you have two options. Your IT team can
execute the security plan or you can leverage the MSSP to manage your
day-to-day security needs. For example, at Century Link, we help our customers
efficiently manage risk by creating a customized security plan, including
threat intelligence, detection and response for a myriad of security concerns.
3.
Managing
security expenses: While buyers are spending more than ever
on security-related hardware and software, many companies are still exposed and
inadequately prepared for a security incident. Simultaneously, buyers are also
under pressure from management to reduce spending and provide more predictable
operating expenses. But, there is good news. Effective preventive measures
aren’t necessarily cost prohibitive. An MSSP can help you spend your security
dollars smarter by focusing your spending on the priorities that will have the
most impact on your security and compliance posture. With a managed security
approach, you transfer the cost of ownership, thereby reducing the need for
capital investments. You’ll gain a predictable OpEx model that is easier to
forecast and budget, especially important when IT budgets are expected to
remain flat.
Q – Differentiate between the
following:
i)
Digital Signature and Electronic Signature
Ans. i) E-SIGNATURE AND DIGITAL SIGNATURE
The IT Act of India discusses two types of signatures:
• Electronic
Signature, and
• Digital Signature.
Important
points for comparison have been summarised below:
· Section
2(1) (ta) of the IT Act 2008 defines Electronic Signature as: “electronic
signature means authentication of any electronic record by a subscriber by
means of the electronic technique specified in the Second Schedule and includes
digital signature”. The section 2(1) (p) of the IT Act 2000 talks about Digital
Signatures and defines it as “digital signature means authentication of any
electronic record by a subscriber by means of an electronic method or procedure
in accordance with the provisions of section 3” of the Information Technology
Act.
· Electronic
Signatures are technologically neutral and the act does not specify any
particular technology for the purpose of creation of electronic signature while
digital signature follows specific technologybased approach. For example, usage
of hash functions, use of public key cryptography system, etc.
· Electronic
Signature can be biometric, name typed at the end of a mail, digitalized
version of conventional signature. Digital signature uses two-way protection
system with encryption and decryption.
· Digital
Signatures are more authentic than electronic signatures.
· Electronic
signatures are used for the purpose of verification of document while Digital
Signatures are used for securing the document.
· Digital
Signatures have limited validity of maximum three years, while electronic
signatures have no such limits on validity.
Q – What is E-tailing?
Explain its advantages & Disadvantages for retailers.
Ans. E-TAILING
Retail is the process of selling consumer goods or
services to customers through multiple channels of distribution to earn a
profit. Retailers satisfy demand identified through a supply chain. The term
"retailer" is typically applied where a service provider fills the
small orders of many individuals, who are end-users, rather than large orders
of a small number of wholesales, corporate or government clientele. Thus, Retail
is the sale of goods on a physical location where the seller and the buyer meet
in person. Whereas etail is the sale of goods on the internet where the
transaction happens in a digital environment. Various popular players of
E-tailing are Amazon, Flipkart, Zomato, Swiggy, MakemyTrip etc, and for
retailers are Walmart, Mcdonalds, Big Bazaar etc.
Advantages of E-tailing for retailers:
1. Location utility: Location is utmost important for
the conventional retailing process to provide convenience utility to its
consumers. However, in e-tailing location is not important. Retailers and
customers need internet for e-tailing and transaction can happen from anywhere
from within the country or overseas.
2. Less expensive: As compare to organised retailing,
e-tailing is less expensive as it saves wages of salesmen and premises cost and
maintenance. These expenditures are low as compare to internet cost.
3. High Reach: Integration with customers is high in
e-tailing as customers can be local, national and international. Through
internet, e-tailers can reach to large audience.
4. 24*7 businesses: The time utility for customers is
high in e-tailing as customers can buy the products and services from anywhere
and anytime.
5. Feedback: It’s easy to manage customer relationship
management in etailing on the basis of feedback of consumers.
Disadvantages
of E-tailing for retailers
1. Lack to infrastructure: The issues of accessibility
and connectivity of internet causes problems in functioning of e-tailing
activities. Also, the initial investment cost is very high in e-tailing.
2. Lack of technological expertise: To start an online
retailing project it is important to have technological expertise and not all
retailers have it.
3. Complex logistic management: Intrinsic and extrinsic
challenges increase the complexities in e-tailing logistics. Like cash on
delivery increases the operational cycle, managing high rates of returns, poor
logistic management in rural areas and problems in cross-nation shipments.
4. Customers’ expectations: In terms of flexibility in
delivery, detailed product descriptions, cost and security of delivery, flexible
payment options sets high expectations of customers.
5. Lack of personal touch: The lack of face-to-face
interaction, persuasion and handling the customers’ query is a major
disadvantage in e-tailing.
6. High competition: E-tailers have to compete with
other e-tailers as well as the organised and unorganised retailers in the
market that increase the competitions for them.
Q – What do you mean by
E-Services? State the It’s Benefits.
Ans.
E-service is also known as an online service refers to any
information and service provided over the Internet. These services not only
allow subscribers to communicate with each other, but they also provide
unlimited access to information. These services may be free or paid. Thus,
E-Service comprises of the online services available on the Internet, whereby a
suitable transaction of buying and selling is achievable, as opposed to the
long-established websites, whereby only explanatory information are available,
and no online transaction is made possible. Thus, e-service may also include
e-Commerce, although it may also include non-commercial services (online).
BENEFITS
OF E-SERVICES
There are assured benefits of using online services and
these services which can give organisation an edge in making available numerous
benefits both tangible and intangible in nature.
We can easily list a number of benefits e-services can
provide to vendors and consumers and could be fruitful in both the aspects such
as;
•
Accessing a greater customer base
•
Accessing a greater customer base.
•
Alternative communication channel to
customers
•
Alternative communication channel to
customers
•
Broadening market reach
•
Broadening market reach.
•
Cost savings.
•
Enhancing perceived company image
•
Enhancing transparency
•
E-services can provide flexibility to Save
your changes and return later to complete your submission.
•
Faster delivery of products.
•
Gaining competitive advantages
•
Global access, 24 hours a day, 7 days a
week.
•
Improved client service through greater
flexibility.
•
Increased professionalism.
•
Increasing services to customers
•
Less paper waste.
•
Lowering of entry barrier to new markets
and cost of acquiring new customers
•
Lowering of entry barrier to new markets
and cost of acquiring new customers.
Q – State the Technologies
used by FINTECH Companies.
Ans. Technologies Used By FinTech
Within the financial services industry, some of the
used technologies include artificial intelligence (AI), big data, robotic
process automation (RPA), and block-chain. A brief about all of these
technologies in FinTech is explained below:
1. Artificial Intelligence:
Artificial Intelligence is a general term for many different technologies. In
terms of the "FinTech" industry, AI is used in various forms. AI
algorithms can be used to predict changes in the stock market and give insight
into the economy.
2. Chatbots: A
chatbot is a software application used to conduct an on-line chat conversation
via text or text-to-speech, in place of providing direct contact with a live
human agent. A chatbot is a type of software that can automate conversations
and interact with people through messaging platforms. Chatbots are another
AI-driven tool that banks and FinTech industries are using these days to help
with customer service.
3. Big Data:
Big Data is another technology that financial institutions can utilize. In the
finance sector, big data can be used to predict client investments and market
changes and create new strategies and portfolios.
4. Robotic Process Automation:
Robotic Process Automation is an artificial intelligence technology that
focuses on automating specific repetitive tasks. In terms of FinTech, RPA is
used to perform manual tasks that often are repetitive and completed daily.RPA
helps to process financial information such as accounts payable and receivable
more efficiently than the manual process and often more accurately. RPA can be
used to increase the productivity of the financial company.
5. Block-chain:
Blockchain is another financial technology that is being used in the industry.
Out of all the "FinTech" technologies, block-chain was developed for
the purposes of finance.The main feature of Blockchain in financial services is
decentralization where it is not required to trust a third party to execute
transactions. Though block-chain is still an emerging technology, many
companies recognize the impact that it will have and are investing accordingly.
In a nutshell, FinTech is the root of innovation operating at the intersection
of financial services and technology.
6. Other
forms of FinTech technologies act to supplement and enhance existing financial
services. These include services such as transferring funds between banks by
companies such as Plaid (company) and augmenting payroll services for consumers
by companies such as Clair.
Q – Describe the various
steps of an App development process.
Ans. STEPS FOR APP DEVELOPMENT
Development of an app is a comprehensive task involving
various steps, a brief of all the important steps which needs to be followed
while developing any app is described below:
1. Defining Mobile App Objectives
To clearly set and define the
objectives for which App is being made is an important part of the App making
process. Following points are important to consider before App designing is
defined –
· What
is the main purpose of making App?
· What
are the main features of App that will be useful for customers? .
· How
this App will be useful in solving problems of the customers?
Predefined App features
are very useful in assessing the total development budget of the App. However,
research indicates that app design should prioritize user involvement over
proprietary offerings when it comes to prioritizing features.
2.
Preliminary
Design
Deciding about preliminary design is
the first step of an app development, it is important to take time to design an
app's fundamental structure. Before the next step, it is always advisable to
spend enough time to design the App preliminary. The concept building for
production of clear understanding of each and every small element of the app is
important. This phase does not take much time for simple app design, but will
take time in case of complex applications design.
3.
Market
Research
There might be several innovative apps
to start various business projects, but before you move into design and
development, it is always better to do research work in terms of market
requirement. A small research project with the following questions can support
the project much before planning and development work begins –
· What
are marketing plans for this App?
· Who
are target audience for this App?
· How
do you want your customers to use your app?
· Which
software platform and framework will be used to make it?
· Which
mobile app development language will be used?
4. Market Analysis
A market analysis is a quantitative
and qualitative assessment of a market. It looks into the size of the market
both in volume and in value, the various customer segments and buying patterns,
the competition, and the economic environment in terms of barriers to entry and
regulation. The market for mobile apps is growing rapidly like never before.
Due to the pandemic, the number of apps downloaded has increased a lot.
5. Collection of Users Feedback
After the App is ready, share it with
friends and relatives and co-workers to get their feedback and modify the App
accordingly. Following questions may be asked during this feedback –
· Is
this app useful?
· Will
this app be used?
· What
is the tentative cost of this App?
· Is
there anything which can be added to it to make it more useful?
6. Financial and Technical Feasibility
It is always necessary to check the
financial and technical viability of the entire plan before developing app. It
is required to verify whether this software can be developed and whether
existing technology funding is available to develop this application.
Financial Feasibility:
Financial analysis is an essential activity in order to achieve financial
viability. It is important to understand App's fixed cost, to estimate profit
from consumers. The financial plan should also cover publicity, advertisement
and web hosting expenses. Rental fee for App Store should be included as well.
A balanced financial plan must be established in advance.
Technical Feasibility:
Technical feasibility means checking the possibility if App can be developed by
using the latest technology or not. It is important to check if organization is
capable enough to use the latest technology or not. After the financial
evaluations, there may be some technical questions to answer as well.
7. Testing of App Prototype
This is an important stage in the
lifecycle of app development. After completing the App with exciting graphics
and text, it is important for the app to be thoroughly tested and corrected under
a range of real-world scenarios. Link to your original records of design and
planning and check all functions.
8. Launching the App
The process of releasing an app in the
market is extremely critical, as it is largely dependent on the success of this
application. For branding and marketing the App, it is always advisable to hire
a good marketing agency who will make efforts to launch the App in a very
professional manner. Marketing is also one of the most critical activities to
get involved at an early stage in the process. The Digital Marketing Team
supports keyword analysis, important for SEO and App Store Optimism (ASO), both
crucial to discovery. The next step is the submission of the mobile app for
sale in different markets. Before starting this phase, high-quality screenshots
of the application and promotional video and/or demo must be ready for better
results.
9. Official Release
Up until this point, App's official
release date should be the climax of app marketing efforts. Influential
bloggers and journalists could write some papers and articles to apprise the
people who showed interest in the App before the launch. There could also be a
promotional e-mail drive to attract downloads and raise momentum. If the app is
published, try keeping user of the app committed by announcing a special deal
or promotion using push notifications so that users open the app.
Build a simple collaborative feedback channel and
respond to users' comments and concerns. Updating your customers quickly will
work wonderful. Make sure you evaluate and track those KPIs that identify your
marketing goals effectively.
No comments:
Post a Comment