INFORMATION - Knowledge that you get about something or someone.

COMMUNICATION - htransmission of ideas and emotions the Is between or among persons with the use
of verbal and non-verbal cues.

TECHNOLOGY - knowledge of tools, techniques, crafts, systems or methods of organization in order to

solve a Making, usage and problem or serve some purpose.

BUSINESS also known enterprise, an a as company or a firm is an organizational entity involved in the to
services provision of goods and consumers. The word "business" can particular organization or to an
entire market sector (for example, "the finance business" is "the financial sector") or to all economic
business sector") refer to a collectively ("the sectors Business

FORMS OF BUSINESS

 Sole proprietorship owned by one person and operates for their benefit
 Partnership - owned by two or more people Corporation can be either government- owned or
privately owned
 Cooperative - differs from a in that it has members, not shareholders
 Franchises - entrepreneurs purchase the rights to open and run a business from a larger
corporation. corporation.

APPLICATION (APPS)

Is a program that is created to assist users with a specific task. Programs particular computing problems.
that help us solve ers designed solve to programs problems such as those used in business, engineering
and scientific research.

TYPES OF APPS

 Package Programs

Commonly called Application Package

 Custom Programs

Specifically written for an organization or a single user using any programming language PHP and
others. These are user-developed C++ like Visual Basic, programs.
SOFTWARE

Refers components of the computer that are intangible in nature. Set of instructions that computer can
understand. the to non-physical

All applications are software, but not all software are applications.

B.A.S

Applications that enabling users to perform critical business functions as increasing productivity,
productivity, tasks and functions such measuring performing accurately. Most business applications are
built based on the requirements from the or users.

Common types of business software

 word processing programs

 business invoicing programs
 billing programs
 payroll software
 database software
 asset management software
 desktop publishing programs

All software applications need license in order to run software a There are three different types of
proprietary software licenses:

Common types of software licenses

1. PER DEVICE LICENSES usually for one installation of the software on a server computer, phone or
other device. This is the most common type of license for software. Some versions of this type of
license may require you to activate the software. This allows the supplier to check that the
software is installed on just one PC.

2. PER USER LICENSES are common where more than one person can use the software simultaneously.
The license is usually for a of users. specified maximum number

3. SITE LICENSES are much less restrictive. They typically allow as many users as you wish at one location.

OPEN SOURCE SOFTWARE

OPEN SOURCE LICENSE is made available under a license that allows you to modify, make copies and
pass the source code on to anyone. The software comes with its source code released -which you change
to meet your needs. There are pros and cons for this.

How to choose software for your business

1. Document your business processes can make documenting your business. Diagrams easier for
example, using boxes for processes and arrows to show documents, invoices etc, entering or
leaving processes Documenting your business in this way will help you: identify areas improve
your business processes explain your business and its requirements to potential suppliers when
buying software where could new
2. Shortlisting software solutions
3. Compare your list of requirements with the information that you have about each package.
4. Reject all packages that cannot have 'must meet your requirements. From the rest, select the
one that delivers the greatest number of your advantageous and 'nice to have features at a price
your business can afford.

ADDITIONAL COSTS

As well as the price of software, you should also consider support costs, future upgrade costs and the
need for hardware upgrades to use your software to full effect.

FUTURE SUITABILITY

You should also try to determine if this software would still be suitable as your business evolves. For
example, the system should be able to handle an increased workload should your customer base grow.

LICENSING

Make sure you buy licensed software and keep safe your proof of ownership, such as the original
distribution CDs or hologrammed certificate of authenticity.

There are many ways to get advice and support when choosing software including:

1. Professional and trade associations

2. Software or business consultants
3. software vendors - but keep in mind these
4. might not give unbiased advice.
5. Weekly and Computing can be a good way to
6. get information on the basic issues, so you
7. know the right questions to ask.
8. Get help with assessing your software requirements
E-commerce

Electronic Commerce

To many people the term electronic commerce, often shortened to e-commerce, is equivalent to
shopping on the web. It encompasses both web shopping and other business conducted electronically.

Banks have used ELECTRONIC FUNDS TRANSFERS (EFTS), also called wire transfers, for decades.

Businesses have been engaging in ELECTRONIC DATA INTERCHANGE for years. EDl occurs when one
business transmits computer readable data in a standard format to another business.

WHAT IS COMMERCE?

Commerce is a division of trade or production which deals with the exchange of goods and services from
producer to final consumer lt comprises the trading of something of economic value such as goods,
services, information, or money between two or more entities.

Commerce is based on the specialization of skills. Instead of performing all services and producing all
goods independently, people rely on each other for the goods and services they need.

Technology and Commerce

In order to understand how technology can aid commerce we need to understand traditional commerce.

Once we have identified what activities are involved in traditional commerce, we can consider how
technology can improve them. Note that technology does not always improve Commerce. Knowing
when technology will NOT help is also useful.

Traditional commerce

Although money has replaced bartering, the basic mechanics of commerce remain the same:

one member of society creates something of value that another member of society desires.

Commerce is a negotiated exchange of valuable objects or services between at least two parties

and includes all activities that each of the parties undertakes to complete the transaction.

Views of commerce

Commerce can be viewed from at least two different

perspectives:

1. The buyer's viewpoint

2. The seller's viewpoint

Both perspectives will illustrate that commerce involves a number of distinct activities, called business
processes.

Business processes

Business processes are the activities involved in conducting commerce.

Examples include:

1. Sending invoices
2. Transferring funds
3. Placing orders
4. Shipping goods to customers

The buyer's perspective

From the buyer's perspective, commerce involves the following activities:

1. Conduct market research to identify customer needs

2. Create a product or service to meet those needs

3. Advertise and promote the product or service

4. Negotiate a sales transaction including delivery logistics, inspection, testing, and acceptance

5. Ship goods and invoice the customer

6. Receive and process customer payments

7. Provide after sales support and maintenance

The seller's perspective

From the sellers' perspective, commerce involves the following activities :

1. Conduct market research to identify customer needs

2. Create a product or service to meet those needs

3. Advertise and promote the product or service

4. Negotiate a sales transaction including delivery logistics, inspection, testing, and acceptance

5. Ship goods and invoice the customer

6. Receive and process customer payments

7. Provide after sales support and maintenance

E-Commerce

Consist of buying and selling goods and services over an electronic systems such as the internet and

other networks.

E-Commerce is purchasing, selling and exchanging goods and services over computer networks

(Internet) through which transaction or terms of sales are performed electronically.

E-Commerce use of electronic data transmission to implement or enhance any business activity.

E-commerce is changing the way traditional commerce is conducted: Technology can help throughout
the process including promotion, searching, selecting, negotiating, delivery, and support.

Brief History Of E-Commerce

o 1970s: ELECTRONIC FUNDS TRANSFER (EFT) Used by the banking industry to exchange account
information over secured networks

o Late 1970s and early 1980s: ELECTRONIC DATA INTERCHANGE (EDI) for e-commerce within Companies
Used by businesses to transmit data from one business to another

o 199Os:the WORLD WIDE WEB on the Internet provides easy-to-use technology for information
publishing and dissemination

Cheaper to do business (economies of scale)

Enable diverse business activities (economies of scope

ELECTRONIC DATA INTERCHANGE

In the 1960s businesses realized that many of the documents they exchanged related to the shipping of
goods and contained the same set of information for each transaction. By sending the information
electronically in a standard format, the businesses could save money on printing, mailing, and re-entry of
data. Electronic transfer of data also introduces fewer errors than manual transfer.

Why Use E-Commerce

oLOW ENTRY CoST

o REDUCES TRANSACTION COSTs

o AccESS TO THE GLOBAL MARKET

o SEcURE MARKET SHARE

THE PROCESS OF E-COMMERCE

1. A consumer uses Web browser to connect to the home page of a merchant's Web site on the
Internet.
2. The consumer browses the catalogue of products featured on the site and selects items to
purchase. The selected items are placed in the electronic equivalent of a shopping cart.
3. When the consumer is ready to complete the purchase of selected items, she provides a bill-to
and ship-to address for purchase and delivery.
4. When the merchant's Web server receives this information, it computes the total cost of the
order
5. including tax, shipping, and handling charges--and then
6. displays the total to the customer.
7. The customer can now provide payment information, such as a credit card number, and then
submit the order.
8. When the credit card number is validated and the order is completed at the Commerce Server
site, the merchant's site displays a receipt confirming the customer's purchase.
9. The Commerce Server site then forwards the order to a Processing Network for payment
processing and fulfilment.

TYPES OF E-COMMERCE

BUSINESS-TO-BUSINESS (B2B)

B2B stands for Business to Business.

It consists of largest form of Ecommerce. This model defines that Buyer and seller are two different
entities. It is similar to manufacturer issuing goods to the retailer or wholesaler.

BUSINESS-TO-CONSUMER (B2C):
 lt is the model taking businesses and consumers interaction. The basic concept of this model is to sell
the product online to the consumers.

B2c is the direct trade between the company and consumers. It provides direct selling through online.

BUSINESS-TO-EMPLOYEE (B2E)

Business-to-employee (B2E) electronic commerce uses an intrabusiness network which allows

companies to provide products and/or services to their employees. Typically, companies use B2E
networks to automate employee-related corporate processes.

CONSUMER-TO-CONSUMER (C2C)

o There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell
thanks to online payment systems like PayPal where people can send and receive money online with
ease. eBay's auction service is a great example of where person-to-person transactions take place
everyday since 1995.

PROS AND CONS OF E-COMMERCE

Advantages of E-Commerce

For the seller:

1. . Increases sales/decreases cost

2. . Makes promotion easier for smaller firms
3. . Can be used to reach narrow market segments

For the buyer:

1. . Makes it easier to obtain competitive bids

2. . Provides a wider range of choices
3. . Provides an easy way to customize the level of detail in the information obtained
4. No checkout queues
5. Reduce prices
6. You can shop anywhere in the world
7. Easy access 24 hours a day
8. Wide selection to cater for all consumers

In general (Advantage):

1. Increases the speed and accuracy with which businesses can exchange information.
2. Electronic payments (tax refunds, paychecks, etc.) cost less to issue and are more secure.
 3. Can make products and services available in remote areas.
4. Enables people to work from home, providing scheduling flexibility.

Disadvantages of E-Commerce

1. Some business processes are not suited to e-commerce, even with improvements in technology
2. Many products and services require a critical mass of potential buyers (e.g.online grocers)
3. Costs and returns on e-commerce can be difficult to quantify and estimate
4. Cultural impediments: People are reluctant to change in order to integrate new technology
5. The legal environment is uncertain: Courts and legislators are trying to catch up
6. Unable to examine products personally
7. Not everyone is connected to the Internet
8. There is the possibility of credit card number theft
9. On average only 1/9th of stock is available on the net