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ASSIGNMENT SOLUTIONS GUIDE (2014-2015)

M.P.A.-17
E-Governance
Disclaimer/Special Note: These are just the sample of the Answers/Solutions to some of the Questions given in the
Assignments. These Sample Answers/Solutions are prepared by Private Teacher/Tutors/Auhtors for the help and Guidance
of the student to get an idea of how he/she can answer the Questions of the Assignments. We do not claim 100% Accuracy
of these sample Answers as these are based on the knowledge and cabability of Private Teacher/Tutor. Sample answers
may be seen as the Guide/Help Book for the reference to prepare the answers of the Question given in the assignment. As
these solutions and answers are prepared by the private teacher/tutor so the chances of error or mistake cannot be denied.
Any Omission or Error is highly regretted though every care has been taken while preparing these Sample Answers/
Solutions. Please consult your own Teacher/Tutor before you prepare a Particular Answer & for uptodate and exact
information, data and solution. Student should must read and refer the official study material provided by the university.
SECTION I
Q. 1. There are various e-governance models that can be used as a guide in designing e-government initiatives
discuss.
Ans. Models of E-governance: Based on different classes of information, their sources and frequency of updation
and exchange, various models of e-governance projects can be evolved. The National E-governance Action Plan of the
Government of India [NeGP] can act as a model for such projects. The models are classified in the following categories:
Broadcasting Model
Critical Flow Model
Comparative Analysis Model
E-Advocacy/Lobbying and Mobilization Model
Interactive Service Model
Now we will discuss these models separately:
Broadcasting Model: The model is based on broadcasting or dissemination of useful governance information which
already exists in the public domain into the wider public domain through the use of ICT and convergent media. The utility
of this model is that a more informed citizenry is better able to benefit from governance related services that are available
for them.
Critical Flow Model: The model is based on dissemination information of critical value (which by its very nature
will not be disclosed by those involved with bad governance practices) to targeted audience using ICT and convergent
media. Targeted audience may include media, opposition parties, judicial bench, independent investigators or the wider
public domain itself.
Comparative Analysis Model: Comparative Analysis Model is one of the least used, but a highly significant model
for developing a country which is now gradually gaining acceptance. The model can be used for empowering people by
matching cases of bad governance with those of good governance, and then analyzing the different aspects of bad governance
and its impact on the people.
E-advocacy Model/Mobilization and Lobbying Model: E-Advocacy/Mobilization and Lobbying Model is one of
the most frequently used Digital Governance Model and has often come to the aid of the global civil society to impact on
global decision-making processes. The strength of this model is in its diversity of the virtual community, and the ideas,
expertise and resources accumulated through this virtual form of networking.
Interactive Service Model: Interactive Service Model is a consolidation of the earlier presented digital governance
models and opens up avenues for direct participation of individuals in the governance processes. Fundamentally, ICT
have the potential to bring in every individual in a digital network and enable interactive (two-way) flow of information
among them.
Q. 2. Briefly describe the various components of ICT.
Ans. The computer hardware is the physical part of the computer system; it includes electronic devices, which have
the potential for performing the task of solving a problem. The computer hardware is composed of three main components,
namely:

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Central Processing Units (CPU)

Memory Units (Storage Devices)
Input/Output Devices
In addition, computer hardware is very important part because it handles the interconnection of each device. It is a set
of different computer parts such as motherboard, hard disk drive and cable wire connection, and also it is a main function
of the computer application or software and technically requirements needs.
The typical computer consists of following parts:
Motherboard: A motherboard is the central printed circuit board (PCB) in many modern computers and holds many
of the crucial components of the system, while providing connectors for other peripherals. The motherboard is sometimes
alternatively known as the main board or system board.
Central Processing Unit: The Central Processing Unit (CPU) is the portion of a computer system that carries out the
instructions of a computer programme and is the primary element carrying out the computers functions. The central
processing unit carries out each instruction of the Programmes in sequence, to perform the basic arithmetical, logical, and
input/output operations of the system. This term has been in use in the computer industry at least since the early 1960s.
The form, design and implemen-tation of CPUs have changed dramatically since the earliest examples, but their fundamental
operation remains much the same.
Random Access Memory: RAM is a form of computer data storage. Today, it takes the form of integrated circuits
that allow stored data to be accessed in any order (that is, at random). Random refers to the idea that any piece of data
can be returned in a constant time, regardless of its physical location and whether it is related to the previous piece of data.
Buses: In computer architecture, a bus is a subsystem that transfers data between computer components inside a
computer or between computers.
Early computer buses were literally parallel electrical buses with multiple connections, but the term is now used for
any physical arrangement that provides the same logical functionality as a parallel electrical bus. Modern computer buses
can use both parallel and bit-serial connections, and can be wired in either a multidrop (electrical parallel) or daisy chain
topology, or connected by switched hubs, as in the case of USB.
Storage Controllers: Hardware that keeps data inside the computer for later use and remains persistent even when
the computer has no power.
Video Display Controllers: Video Display Controller or VDC is an integrated circuit which is the main component
in a video signal generater, a device responsible for the production of a TV video signal in a computing or game system.
Some VDCs also generate an audio signal, but in that case its not their main function.
Computer Bus Controllers: They are used to connect the computer to external peripheral devices.
Removable Media Writer: CD (Compact Disc): The most common type of removable media, suitable for music
and data.
CD-ROM Drive: A device used for reading data from a CD.
CD Writer: A device used for both reading and writing data to and from a CD.
DVD (Digital Versatile Disc): A popular type of removable media that is the same dimensions as a CD, but stores up
to 12 times as much information. It is the most common way of transferring digital video, and is popular for data storage.
DVD-ROM Drive: A device used for reading data from a DVD.
DVD Writer: A device used for both reading and writing data to and from a DVD.
DVD-RAM Drive: A device used for rapid writing and reading of data from a special type of DVD.
Floppy Disk: An outdated storage device consisting of a thin disk of a flexible magnetic storage medium used today
mainly for loading RAID drivers.
Iomega Zip Drive: An outdated medium-capacity removable disk storage system, first introduced by Iomega in
1994. It is a flash memory data storage device integrated with a USB interface, typically small, lightweight, removable,
and rewritable. Capacities vary, from hundreds of megabytes (in the same ballpark as CDs) to tens of gigabytes (surpassing,
at great expense, Blue-ray discs).
Tape drive: A device that reads and writes data on a magnetic tape, used for long term storage and backups.
Internal Storage: Computer data storage, often called storage or memory, refers to computer components and recording
media that retain digital data used for computing for some interval of time. Computer data storage provides one of the
core functions of the modern computer, that of information retention. It is one of the fundamental components of all
modern computers. There are mainly two devices which are helpful in storing the data:

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Hard Disk: A Hard Disk Drive (HDD) is a non-volatile, random access device for digital data. It works on rotating
rigid platters on a motor-driven spindle within a protective enclosure. Data is magnetically read and written on the platter
by read/write heads that float on a film of air above the platters.
Disk Array Controller: A disk array controller is a device which manages the physical disk drives and presents them
to the computer as logical units. It almost always implements hardware RAID, thus it is sometimes referred to as RAID
controller. It also often provides additional disk cache.
Sound Card: A sound card (also known as an audio card) is a computer expansion card that facilitates the input and
output of audio signals to and from a computer under control of computer programmes. Typical uses of sound cards
include providing the audio component for multimedia applications such as music composition, editing video or audio,
presentation, education, and entertainment (games). Many computers have sound capabilities built in, while others require
additional expansion cards to provide for audio capability.
Networking: It is used in connecting Internet and also used to connect various computers together. It uses following
devices:
Modem: A modem modulates outgoing digital signals from a computer or other digital device to analog signals for a
conventional copper twisted pair telephone line and demodulates the incoming analog signal and converts it to a digital
signal for the digital device.
Network Card: A network card is an expansion card which installs into a computer and enables that computer to
physically connect to a local area network.
Other Peripherals: In spite of all these computer also contain following devices:
Input Devices: An input device is any peripheral (piece of computer hardware equipment) used to provide data and
control signals to an information processing system (such as a computer). Input and output devices make up the hardware
interface between computer as a scanner.
Output Devices: An output device is any piece of computer hardware equipment used to communicate the results of
data processing carried out by an information processing system (such as a computer) to the outside world.
Computer Software
Computer software, or just software, is the collection of computer programmes and related data that provide the
instructions telling a computer what to do and how to do it. We can also say software refers to one or more computer
programmes and data held in the storage of the computer for some purposes. Programmes software performs the function
of the programmes it implements, either by directly providing instructions to the computer hardware or by serving as
input to another piece of software. The term was coined to contrast to the old term hardware (meaning physical devices).
In contrast to hardware, software is intangible, meaning it cannot be touched. Software is also sometimes used in a
more narrow sense, meaning application software only. Sometimes the term includes data that has not traditionally been
associated with computers, such as film, tapes, and records.
Types of Computer Software: Different types of computer software are available in the global computer market.
Programming software, system software and application software are the three main types of computer software used in
computer networking. System software is the most commonly used variety types of software.
System software offers a protective shield to all software applications. It also provides support to the physical
components of computers. System software coordinates all external devices of computer system like printer, keyboard
etc.
Programmers use different software to develop the programming languages necessary to run computer software.
Compilers, interpreters, linkers and text editors are some of the basic tools used in Programming software.
Application software is used for commercial purpose. The Application software is widely used in educational,
business and medical fields. Computer games are the most popular forms of Application software. Industrial automation,
databases, business software and medical software prove to be of great help in the respective fields. Educational software
is widely used in educational institutes across the globe.
Local Area Network
Local Area Networks (LANs) are computer networks ranging in size from a few computers in a single office to
hundreds or even thousands of devices spread across several buildings. They function to link computers together and
provide shared access to printers, file servers, and other services. LANs in turn may be plugged into larger networks, such
as larger LANs or wide area networks (WANs), connecting many computers within an organization to each other and/or
to the Internet.
Because the technologies used to build LANs are extremely diverse, it is impossible to describe them except in the
most general way. Universal components consist of the physical media that connect devices, interfaces on the individual

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devices that connect to the media, protocols that transmit data across the network, and software that negotiates, interprets,
and administers the network and its services. Many LANs also include signal repeaters and bridges or routers, especially
if they are large or connect to other networks.
There are different types of Local Area Networks; like
Topology: Topology is the layout pattern of interconnections of the various elements (links, nodes, etc.) of a computer
network. Network topologies may be physical or logical. Physical topology means the physical design of a network
including the devices, location and cable installation. Logical topology refers to how data is actually transferred in a
network as opposed to its physical design.
Protocols: A protocol is a formal description of digital message formats and the rules for exchanging those messages
in or between computing systems and in telecommunications. Protocols may include signaling, authentication and error
detection and correction capabilities.
Media: Devices can be connected by twisted-pair wire, coaxial cables, or fibre optic cables. Some networks do
without connecting media altogether, communicating instead via radio-waves.
Wide Area Network
A Wide Area Network (WAN) is a geographi-cally dispersed telecommunications network. The term distinguishes a
broader telecommunication structure from a Local Area Network (LAN). A wide area network may be privately owned or
rented, but the term usually connotes the inclusion of public (shared user) networks. An intermediate form of network in
terms of geography is a Metropolitan Area Network (MAN). Internet is the largest WAN in the world.
Internet: The Internet, sometimes called simply the Net, is a worldwide system of computer networks a network
of networks in which users at any one computer can, if they have permission, get information from any other computer
(and sometimes talk directly to users at other computers). It was conceived by the Advanced Research Projects Agency
(ARPA) of the U.S. government in 1969 and was first known as the ARPANet. The main aim was to create a network that
would allow users of a research computer at one university to be able to talk to research computers at other universities.
A side benefit of ARPANets design was that, because messages could be routed or rerouted in more than one direction,
the network could continue to function even if parts of it were destroyed in the event of a military attack or other disaster.
Today, the Internet is a public, cooperative, and self-sustaining facility accessible to hundreds of millions of people
worldwide. Physically, the Internet uses a portion of the total resources of the currently existing public telecommunication
networks. Technically, what distinguishes the Internet is its use of a set of protocols called TCP/IP (for Transmission
Control Protocol/Internet Protocol). Two recent adaptations of Internet technology, the Intranet and the Extranet, also
make use of the TCP/IP protocol.
Satellite
In the context of spaceflight, a satellite is an object which has been placed into orbit by human endeavour. Such
objects are sometimes called artificial satellites to distinguish them from natural satellites such as the Moon. Satellites are
used for a large number of purposes. Common types include military and civilian earth observation satellites, communication
satellites, navigation satellites, weather satellites and research satellites. Space stations and human spacecraft in orbit are
also satellites. Satellite orbits vary greatly, depending on the purpose of the satellite.
Q. 3. Highlight the role of ICT in agriculture development.
Ans. ICT can play an important role in many aspects of rural development. It can also help to better govern various
aspects of rural development. The working definition (used by the British Council) emphasizes that Governance involves
interaction between the formal institutions and those in civil society. Governance refers to a process whereby elements in
society wield power, authority and influence and enact policies and decisions concerning public life and social upliftment.
The concept of good governance implies accountability, transparency, participation, openness and the rule of law.
According to World Bank, good governance is epitomized by predictable, open and enlightened policy-making, a
bureaucracy imbued with a professional ethos acting in furtherance of the public good, the rule of law, transparent
processes, and a strong civil society participating in public affairs. Poor governance (on the other hand) is characterized
by arbitrary policy-making, un-accountable bureaucracies, unenforced or unjust legal systems, the abuse of executive
power, a civil society unengaged in public life, and widespread corruption.
ICT can strengthen the role of each governance pillar in rural development and poverty reduction. It can facilitate
speedy, transparent, accountable, efficient and effective interaction between the public, citizens, business and other agencies.
This not only promotes better administration and better business environment, but also saves time and money in
transactions costs of government operations.

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There are many examples about the role of ICT in strengthening rural livelihood, providing market information and
lowering transaction costs of poor farmers and traders. One of them is the Grameen Bank. Grameen Bank, best known as
a micro-credit institution, has also pioneered in ICT related activities with the poor.
As poor people are often unaware of their rights, entitlements and the availability of various govern-ment schemes
and extension services, ICT can also improve their access to the information they need. Through info kiosks or with the
help of mobile phones farmers can access information on market prices or on extension services. Timing is often crucial
when it comes to the sale of produce. Workers can also get information on available jobs and minimum wages.
Essentials
The role of ICT is catalytic in the complex task of poverty reduction by leveraging the effects on earnings opportunities,
on educational and health services, on good governance and on promoting democracy. Since information exchange is part
of nearly every element of the economy, the impact of improvements in the capacity for information exchange will
depend critically on how the rest of the economy functions. This suggests the centrality of a holistic approach in evaluating
the impact of ICT. For example, the impact of improved ICT access on farm earnings through increased knowledge of
market prices will be muted if there are no roads to carry crops to markets, or there are no markets because of an
unreformed agricultural sector.
ICT Applications in Agriculture
The application of Information and Communi-cation Technology (ICT) in agriculture is increasingly important.
E-agriculture is an emerging field focusing on the enhancement of agricultural and rural development through improved
information and communication processes. More specifically, e-agriculture involves the conceptualization, design,
development, evaluation and application of innovative ways to use information and communication technologies (ICT) in
the rural domain, with a primary focus on agriculture. E-agriculture is a relatively new term and we fully expect its scope
to change and evolve as our understanding of the area grows.
E-agriculture is one of the action lines identified in the declaration and plan of action of the World Summit on the
Information Society (WSIS).
The main phases of the agriculture industry are: Crop cultivation, Water management, Fertilizer Application, Pest
management, Harvesting, Post-harvest handling, Transporting of food/food products, Packaging, Food preservation, Food
processing/value addition, Food quality manage-ment, Food safety, Food storage, Food marketing, etc.
All stakeholders of agriculture industry need information and knowledge about these phases to manage them efficiently.
Any system applied for getting information and knowledge for making decisions in any industry should deliver accurate,
complete, concise information in time or on time. The information provided by the system must be in user-friendly form,
easy to access, cost-effective and well protected from unauthorized accesses.
Information and Communication Technology (ICT) can play a significant role in maintaining the above mentioned
properties of information as it consists of three main technologies. They are: Computer Technology, Communication
Technology and Information Management Technology. These technologies are applied for processing, exchanging and
managing data, information and knowledge. The tools provided by ICT are having ability to
Record text, drawings, photographs, audio, video, process descriptions, and other information in digital formats.
Produce exact duplicates of such information at significantly lower cost.
Transfer information and knowledge rapidly over large distances through communication networks.
Develop standardized algorithms to large quantities of information relatively rapidly.
Achieve greater interactivity in communi-cating, evaluating, producing and sharing useful information and
knowledge.
National Institute of Agricultural Extension Management
The National Institute of Agricultural Extension Management (MANAGE) was started by the Ministry of Agriculture
with the assistance of World Bank in 1987, which was subsequently taken over by Government of India. The mandate of
the institute is serving agricultural extension management in public, private and NGO sectors in the country including
other developing nations. The major services of the institute are offered in the areas of research, training, management,
education, publication and dissemination and consultancy. The institute is located at Hyderabad.
The management education in MANAGE began in 1996 with the P.G. Diploma programmes on agri-business
management and agricultural extension management. The programme of P.G. Diploma in agri-business management is
one of the flagship programme of MANAGE which is approved by All India Council of Technical Education and rated
amongst the best sectoral schools in the country. The entry in this programme is open for agriculture and allied graduates.

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This programme, over the years is able to attract the best of the talent from the agriculture streams from across the country
representing large majority of state agricultural universities. Every year from past 14 years several gold medalists of the
universities are joining this programme to make satisfying career as professionals in agri-business sectors.
Village Knowledge Centres
For the development of agriculture in this rural area, farmers have to be motivated, guided, assisted, supported and
helped to have access to the latest research findings in the areas of agriculture, animal husbandry and fisheries by making
available all the information that is required in their village so that they may not waste their time, energy and meager
resources in transporting the inputs required and their produce to the different locations where the information of goods
that they seek is available. With this motive Village Knowledge Centres are established throughout the Islands at identified
locations which will function as Rural Knowledge Bureau for the respective area. They will have connectivity with the
computer systems to be set up in the Blocks by the IT Department as a part of IT Plan of Andaman and Nicobar
Administration. The information to be available in the Centres will include various Government schemes, contact persons
for getting services, technical information on agriculture, animal husbandry, fisheries, industries, information on disaster
management, civil supplies, social welfare pension schemes, health, education, meteorological, shipping services etc.
Wherein the Department of Agriculture will be the Nodal Department to run these centres and these centres will be
operationalized on community basis. Initially the centres will be operated by the Departmental staff during 2007-08,
under the plan scheme the department has kept provision to engage computer literate candidates to operate the computers
and other equipments set up in Rural Knowledge Centres.
ICT and Women Empowerment
While there is recognition of the potential of ICT as a tool for the promotion of gender equality and the empowerment
of women, a gender divide has also been identified, reflected in the lower numbers of women accessing and using ICT
compared with men.
Unless this gender divide is specifically addressed, there is a risk that ICT may exacerbate existing inequalities
between women and men and create new forms of inequality. If, however, the gender dimensions of ICT in terms of
access and use, capacity-building opportunities, employment and potential for empowermentare explicitly identified
and addressed, ICT can be a powerful catalyst for political and social empowerment of women, and the promotion of
gender equality. In the past few years, the global community has seen the gender issue come onto the agenda. Despite
economic and socio-cultural barriers to womens use of Information and Communication Technology (ICT), when women
are able to use them productively, they can substantially improve their lives and increase their income. They have proved
useful in health care delivery; distance education; enhancing rural productivity through access to market information and
access to finance; promoting empowerment and participation in national and international policy processes; improving
service delivery by governments; improving environmental monitoring and response systems; and facilitating environmental
activism. In general, women make up a small percentage of internet and computer users. This is changing in some
countriesgenerally those which have greater levels of development and gender equality. ICTs are potentially an important
knowledge resource for women, but a focus on access is insufficient. We need also to consider what kind of information
is being accessed? Who produced it? Who can use it? What is it used for? In sum, we need to view women not as passive
recipients of information, but active knowledge and technology developers.
To orient ICT projects so that they address these areas, ICT project planning and implementation for social development
and gender equality must take place in a context which consists of five main components:
(a) Creating an enabling environment which supports and encourages strategies to promote womens equal access to
and opportunity to benefit from ICT projects, as well as creating a regulation and policy environment which
supports womens use of ICTs.
(b) Developing content which speaks to womens concerns and reflects their local knowledge, and which is of value
for their daily lives, business enterprises, and family responsibilities.
(c) Supporting increased representation of women and girls in scientific and technical education, and using ICTs to
promote their increased participation in education at all levels.
(d) Promoting increased employment in the IT sector for women and the use of ICTs for womens SMEs.
(e) Implementing e-governance strategies which are accessible to women; and promoting womens lobbying and
advocacy activities.
SECTION II
Q. 4. Write a note on e-learning systems.
Ans. E-learning Systems: Virtual Learning Environment: A VLE will normally work over the Internet and provide
a collection of tools such as those for assessment (particularly of types that can be marked automatically, such as multiple
choice), communication, uploading of content, return of students work, peer assessment, administration of student groups,

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collecting and organizing student grades, questionnaires, tracking tools, etc. New features in these systems include wikis,
blogs, RSS and 3D virtual learning spaces. VLEs are often used in schools and other educational establishments in order
to make the learning experience more interactive.
While originally created for distance education, VLEs are now most often used to supplement traditional face-to-face
classroom activities, commonly known as Blended Learning. These systems usually run on servers, to serve the course to
students Multimedia and/or web pages.
In some programmes, such as elluminate, a virtual learning environment can be similar to a face-to-face classroom
environment in that it allows direct communication with the teacher. Students can use emotions to raise their hand,
show that they are confused, show that they understand what the teacher is saying, and even give applause for something
that the teacher says. Students are also able to talk to the teacher when called on. In many of these virtual learning
environments the students are able to write on the virtual classroom chalkboard. This allows them to show their work
for the rest of the class to see. Students can also be split up into groups in order to work with each other and discuss topics
that the teacher introduces. Many virtual learning environments give teachers the ability to share multimedia files such as
video and audio files as well as the ability to transfer important documents directly to students.
Todays use of virtual learning environment is not restricted to well-structured information spaces, but one expect
that this criterion will become more salient, as content management becomes a main issue for all teachers involved in
virtual learning environ-ments. Researchers have to develop a better under-standing of the functional relationship between
how information is structured and represented and how it can be used in learning activities and interactions.
A VLE should make it possible for a course designer to present to students, through a single, consistent, and intuitive
interface, all the components required for a course of education or training. Although logically it is not a requirement, in
practice VLEs always make extensive use of computers and the Internet. A VLE should implement all the following
elements:
The syllabus for the course.
Administrative information including the location of sessions, details of pre-requisites and co-requisites, credit
information, and how to get help.
A notice board for up-to-date course information.
Student registration and tracking facilities, if necessary with payment options.
Basic teaching materials. These may be the complete content of the course, if the VLE is being used in a distance
learning context, or copies of visual aids used in lectures or other classes where it is being used to support a
campus-based course.
Additional resources, including reading materials, and links to outside resources in libraries and on the Internet.
Self-assessment quizzes which can be scored automatically.
Formal assessment procedures.
Electronic communication support including e-mail, threaded discussions and a chat room, with or without a
moderator.
Differential access rights for instructors and students.
Production of documentation and statistics on the course in the format required for institutional administration
and quality control.
All these facilities should be capable of being hyperlinked together.
Easy authoring tools for creating the necessary documents including the insertion of hyperlinksthough it is
acceptable (arguably, preferable) for the VLE to be designed allowing standard word processors or other office
software to be used for authoring.
Q. 5. Bring out the benefits and limitations of e-commerce.
Ans. The benefits of e-commerce are:
E-commerce allows people to carry out businesses without the barriers of time or distance. One can log on to the
Internet at any point of time, be it day or night and purchase or sell anything one desires at a single click of the
mouse.
The direct cost-of-sale for an order taken from a website is lower than through traditional means (retail, paperbased), as there is no human interaction during the online electronic purchase order process. Also, electronic
selling virtually eliminates processing errors, as well as being faster and more convenient for the visitor.
E-commerce is ideal for niche products. Customers for such products are usually few. But in the vast market place
i.e. the Internet, even niche products could generate viable volumes.
Another important benefit of e-commerce is that it is the cheapest means of doing business.

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The day-to-day pressures of the marketplace have played their part in reducing the opportunities for companies to
invest in improving their competitive position. A mature market, increased competition have all reduced the
amount of money available to invest. If the selling price cannot be increased and the manufactured cost cannot be
decreased then the difference can be in the way the business is carried out. E-commerce has provided the solution
by decimating the costs, which are incurred.
Organizations
Due to the global reach of the Internet, business organizations are able to send messages worldwide, exploring new
markets and opportunities. This breaks down geographic limitations and reaches narrow markets that traditional businesses
have difficulties in accessing. Through the Internet, business now offers a wide range of choices and higher levels of
customer information and details for individuals to search and compare. Some build-to-order companies such as Dell
Computer Corp. can even provide a competitive advantage by inexpensive customization of products and services. In
terms of cost reduction, e-commerce helps organizations decrease costs in creating, processing, distributing, storing and
retrieving information. For example, the communication and advertising costs could be lower by sending e-mails and
using online advertising channels, than by using television commercials or the print media. In terms of online ordering
and online auction organizations, the costs could be lower than running an actual shop with the associated manpower.
Extended trading hours is another benefit, the 24 hours a day, 7 days a week in 365 days allows business always free
to open on the Internet without overtime and extra cost. Other advantages includes the up-to-date company material,
current inventories, improved customers service, better customers communication, increased operating and trading
flexibility.
Consumers
For customers, the advantages occur in the buying process, product research, evaluation and execution. E-commerce
provides customers with a platform to search product information through global markets with a wider range of choices,
which makes comparison and evaluation easier and more efficient. With the accessing of Internet, consumers can search
for shops or perform other transactions anytime in almost locations. Cheaper goods and services is one of the benefits for
consumers who purchase online. Furthermore, delivery time and costs can be saved by buyers when they purchase digital
goods and services. Examples are e-books, music and audio clips, software, games, and distance education delivered the
Internet.
Society
By tele-commumication, individuals can now-a-days work and do their purchasing at home rather than by travelling
around. This will result in less traffic and air pollution. For people in Third World countries, many services and products
are now available which were unavailable in the past; opportunities and higher education services are more achievable for
students. Non-profit organizations, including government services, also benefit from e-commerce by the online payment
system which supports the payment of tax refunds and pensions quickly and securely. Public services such as health care,
education and public social service also benefit from e-commerce. For example, rural doctors and nurses can access
professional information and the latest health care technologies. Overall, e-commerce makes products and services more
easily available without geographic limitations.
E-commerce: Limitations: Turban (2008) suggests the following are some of the limitations of e-commerce that are
classified as technological or non-technological:
Technical Limitations
Lack of universal standards for quality, security, and reliability.
The telecommunication bandwidth is insufficient, especially for m-commerce (electronic commerce via mobile
phones).
Difficulty in integrating e-commerce infrastructure with current organizational IT systems Many companies use
IT systems, which are old (i.e. legacy systems). These were developed to support different needs and different
kinds of software and appli-cations. These systems contain valuable business information, but have to be integrated
with new ones. In many occasions this is extremely difficult. When it comes to full integration with back-office
operations, for example, the cost of integrating legacy systems with modern ones may be greater than that of
actually scrapping them completely.
Non-Technical Limitations
Security and privacy concerns deter customers from buying.
Lack of trust in EC and in unknown sellers hinders buying.
Many legal and public policy issues, including taxation, have not yet been resolved.
Online fraud is increasing.
Some customers like to feel and touch products. Also, customers are resistant to the change from shopping at a
brick-and-mortar store to a virtual store.

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