Quick-Revision-Notes

Monday, July 8, 2024 9:11 PM

UNIT – 1
Business informatics, also known as business information systems or management information
systems, is a field that combines business knowledge with information technology. It focuses
on the use of technology to improve business processes, support decision-making, and achieve
organizational goals.

Business informatics involves the study, design, development, implementation, and

management of information systems in a business context. It covers a wide range of topics such
as database management, business intelligence, data analytics, enterprise resource planning
(ERP) systems, e-commerce, and information security.

Organizational Structure and Design

Any operating organization should have its own structure in order to
operate efficiently. For an organization, the organizational structure is a
hierarchy of people and its functions.
The organizational structure of an organization tells you the character of
an organization and the values it believes in. Therefore, when you do
business with an organization or getting into a new job in an organization,
it is always a great idea to get to know and understand their
organizational structure.
Depending on the organizational values and the nature of the business,
organizations tend to adopt one of the following structures for
management purposes.
Although the organization follows a particular structure, there can be
departments and teams following some other organizational structure in
exceptional cases.
Sometimes, some organizations may follow a combination of the following
organizational structures as well.

Organizational Structure Types

Following are the types of organizational structures that can be observed
in the modern business organizations.
Bureaucratic Structures
Bureaucratic structures maintain strict hierarchies when it comes to people
management. There are three types of bureaucratic structures:
1 - Pre-bureaucratic structures
This type of organizations lacks the standards. Usually this type of
structure can be observed in small scale, start-up companies. Usually the
structure is centralized and there is only one key decision maker.
The communication is done in one-on-one conversations. This type of
structures is quite helpful for small organizations due to the fact that the
founder has the full control over all the decisions and operations.
2 - Bureaucratic structures
These structures have a certain degree of standardization. When the
organizations grow complex and large, bureaucratic structures are required
for management. These structures are quite suitable for tall
organizations.
3 - Post-bureaucratic Structures
The organizations that follow post-bureaucratic structures still inherit the
strict hierarchies, but open to more modern ideas and methodologies. They
follow techniques such as total quality management (TQM), culture
management, etc.

Functional Structure
The organization is divided into segments based on the functions when
managing. This allows the organization to enhance the efficiencies of
these functional groups. As an example, take a software company.
Software engineers will only staff the entire software development
department. This way, management of this functional group becomes easy
and effective.
Functional structures appear to be successful in large organization that
produces high volumes of products at low costs. The low cost can be
achieved by such companies due to the efficiencies within functional
groups.
In addition to such advantages, there can be disadvantage from an
organizational perspective if the communication between the functional
groups is not effective. In this case, organization may find it difficult to
achieve some organizational objectives at the end.

Divisional Structure
These types of organizations divide the functional areas of the
organization to divisions. Each division is equipped with its own resources
in order to function independently. There can be many bases to define
divisions.
Divisions can be defined based on the geographical basis,
products/services basis, or any other measurement.
As an example, take a company such as General Electrics. It can have
microwave division, turbine division, etc., and these divisions have their
own marketing teams, finance teams, etc. In that sense, each division can
be considered as a micro-company with the main organization.

Matrix Structure
When it comes to matrix structure, the organization places the employees
based on the function and the product.
The matrix structure gives the best of the both worlds of functional and
divisional structures.
In this type of an organization, the company uses teams to complete
tasks. The teams are formed based on the functions they belong to (ex:
software engineers) and product they are involved in (ex: Project A).
This way, there are many teams in this organization such as software
engineers of project A, software engineers of project B, QA engineers of
project A, etc.

Integrating Technology With Business Environment

Integration of technology in business is not anymore an alternative but rather a
must. Failure to adopt and integrate modern technology used in business in these
days of digital disruption means they perish with time. The significance of
technology integration cannot be overemphasized because it enables firms to
control operations better, improve efficiency, and maintain competitive
advantage over others.
Companies can tap into new opportunities for increased customer satisfaction,
growth, and innovation by incorporating frontiers such as digital marketing or
customer relationship management systems into all aspects of their work
processes. This ranges from automation of repetitive duties to digging into
insights derived from data accumulation by utilizing tools operating on a data-
driving model. It is thus true that tech integration with other facets allows
informed decision-making by organizations using resources optimally.

Advantages of Technology Integration in Business:-

Enhance Operational Efficiency: Automation plus digital tool usage can reduce
manual labor significantly hence minimizing mistakes leading towards maximizing
productivity plus saving costs.
Improve Decision-Making: Valuable insights are made possible through data
analytics and business intelligence tools which inform company decisions based
on data instead of encouraging strategic growth while mitigating risk
management.
Foster Collaboration and Communication: Use cloud-based platforms or
collaborative instruments to encourage seamless communication and
collaboration among remote groups thus enhancing connectedness and
employee engagement.
Deliver Superior Customer Experiences: With customer relationship
management (CRM) systems and other technologies, businesses can deliver
personalized marketing, predict clients' needs, and offer exceptional service
leading to higher satisfaction levels and loyalty.
Drive Innovation: Tech integrations provide an opportunity for more innovation,
allowing organizations to invent new products or services in ways that may
disrupt industries while opening up additional revenue streams through product
development and research and development.

Challenges of Technology Integration in Business:-

Resistance to Change:

Cybersecurity Risks: As businesses become more reliant on technology, they

also become more vulnerable to cyber threats, such as data breaches, malware
attacks, and unauthorized access, raising concerns about privacy.

Integration complexity: Linking the current framework with developing

infrastructure may be cumbersome from extensive planning through testing
before compatibility is established creating seamless technical integrations in
practice.

Skill Gaps:

Cost Considerations:

What is a corporate strategy?

A corporate strategy is a long-term plan that outlines clear goals for a company.
While the objective of each goal may differ, the ultimate purpose of a corporate
strategy is to improve the company. A company's corporate strategy may be to
focus on sales, growth or leadership. For example, a business might implement a
corporate strategy to expand its sales to different markets or consumers. It may
also use corporate strategy to prioritize resources. Another purpose of corporate
strategy is to create company value and to motivate employees to work toward
that value or set of goals.

Types of corporate strategies:-

Here are some types of corporate strategies you can implement into your
business:

Growth
A growth strategy is a plan or goal for the company to create considerable
growth in different areas. It could refer to overall growth, but it could also
encompass only specific areas, such as sales, revenue, following or company
size. Companies can accomplish growth strategies through concentration or
diversification. Concentration refers to a company developing the core of its
business, such as a bookstore investing in selling more books. Diversification is
when a company enters new markets to expand its business.

Stability
Stability strategies refer to a company staying within its current industry or
market because it's already succeeding in its current situation. This strategy
maintains the company's success by continuing practices that work for the
company. To do this, the company might invest in areas in which they're doing
well, such as customer satisfaction. For example, the marketing team might
create advertisements with coupons on them to send to customers to further
improve customer appraisal.

Retrenchment
The retrenchment strategy encourages the company to change paths to improve
the business. This might mean switching business models or changing markets.
The goal of this is to reduce or manage parts of the business that don't work for
the company. A company might achieve this by either switching the business's
pathway or by removing parts of the business. For example, if a product line is
decreasing company sales, the product management team might remove the line
to save profit.

Reinvention
Reinvention strategies are when a company reinvents, or redesigns, an aspect of
the business that may be old or irrelevant. The company might update it with
new designs, technologies or products. To accomplish this strategy, a project
manager could reinvent a function by significantly changing a good or service. An
example of this could be converting a physical store into an online store.

How to evaluate a corporate strategy:

1. Check for consistency

2. Evaluate resources
Evaluating your resources refers to deciding whether they're relevant. It can also mean seeing if your
company is using all of its resources to increase growth or profits.

3. Analyze the involved risk

4. Examine the timeline

How Technology Gives You Competitive Advantage?

The first point to note is that there are many different types of competitive
advantages. They are not merely limited to a few processes that you may
execute better than a competitor. It could be operational excellence or product
leadership, for example. Or your offering may deliver superior customer
personalization.
Regardless of your specific competitive advantage, it's crucial to note that most
are unsustainable. That is, they will only last for a period of time. For instance,
a first-to-market product only holds an inherent advantage until a competitor
either creates something extraordinarily similar or the patent runs out.

In contrast, sustainable competitive advantages are gained when a specific

aspect of your business has an unfair advantage set to last well into the future.
Warren Buffett has a keen eye for companies that have built such competitive
advantages, describing these enterprises as having a "moat" around them.
He dismisses so-called benefits such as "first-mover advantage." He looks
deeper into investment opportunities for tangible advantages that cannot be
replicated, such as unrivaled industry knowledge (trade secrets) or a
technological advantage.

Why Technology Holds The Key To Business Succes

As the distinction between those who make technology and those who utilize it
vanishes, it will be the companies that use technology for a sustainable
competitive advantage that will leave rivals trailing in their wake. With the
onset of the internet of things (IoT) and big data gathering powered by cloud
technology, early adopters will gain an advantage that could be developed into
a sustainable edge over the competition.
Moving forward, I believe information will be the key to success. Gathering,
analyzing and implementing insights from information developed by cutting-
edge technological solutions will help companies operating in even the most
analog industries to forge a path to success.

UX Design As A Competitive Advantage

Automating Processes As A Competitive Advantage

Leveraging Data Analytics As A Competitive Advantage

Machine Learning As A Competitive Advantage

UNIT - 2
What is e-commerce?
E-commerce (electronic commerce) is the buying and selling of goods and
services, or the transmitting of funds or data, over an electronic network,
primarily the internet. These e-commerce transactions typically fall within four
types: business-to-business (B2B), business-to-consumer (B2C), consumer-
to-consumer or consumer-to-business.

Objectives of E Commerce
The Objectives of E Commerce revolve around leveraging digital platforms to achieve various
business goals. Here are some key objectives:
Increase Sales: E-commerce aims to boost sales by providing a convenient and accessible
platform for customers to browse, choose, and purchase products or services online.
Global Reach: The objective is to overcome geographical limitations and reach a global
audience. E-commerce allows businesses to transcend borders and cater to customers
worldwide.
Cost Efficiency: E-commerce seeks to reduce operational costs associated with traditional
brick-and-mortar stores, such as rent, utilities, and staffing. It aims for efficient and
streamlined processes.
24/7 Availability: E-commerce platforms are designed to operate 24/7, providing
customers with the flexibility to shop at any time. The goal is to eliminate time constraints
and cater to diverse time zones.
Enhance Customer Experience: E-commerce focuses on providing a seamless and user-
friendly experience. This includes easy navigation, secure transactions, and personalized
recommendations to improve overall customer satisfaction.
Data-driven Decision Making: E-commerce businesses aim to gather and analyze data
from customer interactions to make informed decisions. Understanding customer behavior
helps in tailoring marketing strategies and improving products or services.
Expand Customer Base: E-commerce seeks to attract new customers and retain existing
ones. Marketing efforts, such as targeted promotions and social media engagement,
contribute to expanding the customer base.
Build Brand Reputation: Creating a positive online presence is a key objective. E-
commerce businesses aim to build a strong brand reputation through quality products,
excellent customer service, and positive reviews.
Adaptability and Innovation: E-commerce thrives on innovation. Businesses aim to stay
ahead by adopting new technologies, implementing innovative features, and adapting to
changing market trends.
Efficient Inventory Management: The objective is to maintain optimal inventory levels,
reduce stockouts, and avoid overstock situations. E-commerce businesses use technology to
manage inventory efficiently.
Facilitate Secure Transactions: Security is a paramount objective in e-commerce.
Ensuring secure transactions and protecting customer data from breaches is critical to
building trust.
Drive Customer Loyalty: E-commerce businesses aim to foster loyalty by offering rewards
programs, personalized discounts, and excellent customer service. Repeat business is crucial
for long-term success.
Cost-effective Marketing: E-commerce leverages digital marketing channels for cost-
effective promotions. The objective is to reach a targeted audience through channels like social
media, email marketing, and search engine optimization.
Diversification of Revenue Streams: E-commerce businesses often explore multiple
revenue streams, such as subscriptions, partnerships, or affiliate marketing, to diversify
income sources.

7 Key Components of Ecommerce

1. Dynamic Pricing
2. Supply Chain and Management
3. Customer Engagement
4. Video and other types of rich content
5. Shipping and returns
6. Product Quality
7. Loyalty and marketing programs

Models of E-Commerce
The main types of e-commerce business models include the following:
B2B. This refers to the electronic exchange of products, services or
information between businesses rather than between businesses and
consumers. Examples include online directories and exchange websites that
let businesses search for products, services or information and initiate online
transactions through e-procurement interfaces.
B2C. These transactions are when businesses sell products, services or
information to consumers. There are typically intermediaries or middlemen that
handle shipping, delivery and customer service, however. The term was
popular during the dot-com boom of the late 1990s, when online retailers and
sellers of goods were a novelty.
Today, there are innumerable virtual stores and malls on the internet selling all
types of consumer goods. Amazon is the most recognized among these sites,
dominating the B2C market.
Direct-to-consumer (D2C). This is where a business that manufactures or
produces goods and services sells directly to consumers online without any
middlemen or distributors involved, in contrast to B2C e-commerce.
Consumer-to-consumer (C2C). This is a type of e-commerce in which
consumers trade products, services and information with each other online.
These transactions are generally conducted through a third party that provides
an online platform in which the transactions are carried out.
Online auctions and classified advertisements are two examples of C2C
platforms. EBay and Craigslist are two well-known examples of these
platforms. Because eBay is a business, this form of e-commerce could also be
called consumer-to-business-to-consumer. Platforms like Facebook
marketplace and Depop -- a fashion reselling platform -- also enable C2C
transactions.
Consumer-to-business (C2B). This is a type of e-commerce in which
consumers make their products and services available online for companies to
bid on and purchase. This is the opposite of the traditional commerce model of
B2C.
A popular example of a C2B platform is a market that sells royalty-free
photographs, images, media and design elements, such as iStock. Another
example would be a job board.
Business-to-administration (B2A). This refers to transactions conducted
online between companies and public administration or government bodies.
Many branches of government are dependent on various types of e-services
or products. These products and services often pertain to legal documents,
registers, Social Security, fiscal data and employment. Businesses can supply
these electronically. B2A services have grown considerably in recent years as
investments have been made in e-government capabilities.
Consumer-to-administration (C2A). This refers to transactions conducted
online between consumers and public administration or government bodies.
The government rarely buys products or services from individuals, but
individuals frequently use electronic means in the following areas:
• Social Security. Distributing information and making payments.
• Taxes. Filing tax returns and making payments.
• Health. Making appointments, providing test results or information about
health conditions and making health services payments.
Mobile commerce. Also known as m-commerce, mobile commerce refers to
online sales transactions using mobile devices, such as smartphones and
tablets. It includes mobile shopping, banking and payments. Mobile chatbots
facilitate m-commerce, letting consumers complete transactions using voice or
text conversations.
E-commerce applications
Many e-commerce apps use online marketing strategies to improve the
customer experience and get customers to use the platform. These include
email, online catalogs, shopping carts, Electronic Data Interchange (EDI), file
transfer protocol, web services and mobile applications.
These approaches are used in B2C and B2B e-commerce activities, as well as
other types of outreach. They include emailing targeted ads and e-newsletters
to subscribers and sending text messages to mobile devices. Sending
unsolicited emails and texts is generally considered spam, so more companies
now try to entice consumers online, using tools such as digital coupons, social
media marketing and targeted advertisements.
Another area of focus for e-commerce companies is security. Developers and
admins should consider customer data privacy and security, data governance-
related regulatory compliance mandates, personally identifiable information
privacy rules and information protection protocols when developing e-
commerce applications. Some security features are added during the design of
an application, while others must be continually updated to address evolving
threats and new vulnerabilities.
E-MARKETING
E-marketing is a process of planning and executing the conception,
distribution, promotion, and pricing of products and services in a
computerized, networked environment, such as the Internet and the
World Wide Web, to facilitate exchanges and satisfy customer
demands. It has two distinct advantages over traditional marketing.
E-marketing provides customers with more convenience and more
competitive prices, and it enables businesses to reduce operational
costs.
What Does Electronic Customer Relationship Management
Mean?
Electronic customer relationship management (E-CRM) is the application of Internet-
based technologies such as emails, websites, chat rooms, forums and other channels to
achieve CRM objectives. It is a well-structured and coordinated process of CRM that
automates the processes in marketing, sales and customer service.
An effective E-CRM increases the efficiency of the processes as well as improves the
interactions with customers and enables businesses to customize products and services
that meet the customers’ individual needs.

E-supply chain management

E-Supply Chain Management involves incorporating digital technology to manage
diverse supply chain activities. Supply chain management involves managing
numerous tasks from procurement of raw materials to distribution of the finished
products. The use of advanced technology helps optimise every step of the process. It
guarantees increased efficiency, improves coordination between all parties involved,
expedites the process, lowers total costs, and more. According to a recent poll, 31%
of participants stated that they are now in the process of integrating digital supply
chain analytics, while 60% of respondents stated they currently use the tool.

E-Governance

E-governance, meaning ‘electronic governance’ is using information and communication technologies (ICTs)
(such as Wide Area Networks, the Internet, and mobile computing) at various levels of the government and the
public sector and beyond, for the purpose of enhancing governance. The application of ICT to transform the
efficiency, effectiveness, transparency and accountability of exchange of information and transaction:
1. between Governments,
2. between Government agencies,
3. between Government and Citizens, and
4. between Government and businesses

UNIT-3
What is an EFT payment?
An electronic funds transfer (EFT), or direct deposit, is a digital money movement from one
bank account to another. These transfers take place independently from bank employees.
As a digital transaction, there is no need for paper documents. EFT has become a
predominant method of money transfer since it is a simple, accessible, and direct payment
or transfer of funds. As businesses increase their usage of EFT, paper checks become
obsolete due to expense, slower expedition, and overall effort.
E-cash
eCash, also known as electronic cash, is a form of digital currency that allows for the
secure, anonymous, and untraceable transfer of funds. It uses complex encryption
algorithms to ensure that transactions are secure and cannot be intercepted or
tampered with.
One of the critical advantages of eCash is that it allows for anonymous transactions,
meaning that users can transfer funds without revealing their personal information.
This can be useful for individuals who value privacy and want to keep their financial
information private.
eCash is also decentralized, which means it is not controlled and supervised by a
central authority such as a government or a bank. This can be useful for people who
do not trust traditional financial institutions or live in countries where the
government needs a better track record of handling financial transactions.

What Is an Electronic Check (E-Check)?

An electronic check, or e-check, is a form of payment made via the Internet, or
another data network, designed to perform the same function as a conventional
paper check. Since the check is in an electronic format, it can be processed in fewer
steps.
Additionally, it has more security features than standard paper checks including
authentication, public key cryptography, digital signatures, and encryption, among
others.

Digital Token
In simple words, digital tokens (and all other words) are digital assets that represent a certain
value and can be used for different purposes. They are often compared to plastic casino chips
that can be used for gambling but at the same time, they have their own value as they are
equivalent to a certain sum of money.

Digital tokens are often used in the context of blockchain technology, where they can be used
to track ownership and facilitate secure transactions. They can be created and exchanged
easily, making them a popular option for businesses looking to streamline their operations and
increase efficiency.

What is 'E-wallets'
Definition: E-wallet is a type of electronic card which is used for transactions made online
through a computer or a smartphone. Its utility is same as a credit or debit card. An E-wallet
needs to be linked with the individual’s bank account to make payments.

Descriptions: E-wallet is a type of pre-paid account in which a user can store his/her money for
any future online transaction. An E-wallet is protected with a password. With the help of an E-
wallet, one can make payments for groceries, online purchases, and flight tickets, among
others.

E-wallet has mainly two components, software and information. The software component stores
personal information and provides security and encryption of the data. The information
component is a database of details provided by the user which includes their name, shipping
address, payment method, amount to be paid, credit or debit card details, etc.

For setting up an E-wallet account, the user needs to install the software on his/her device, and
enter the relevant information required. After shopping online, the E-wallet automatically fills in
the user’s information on the payment form. To activate the E-wallet, the user needs to enter
his password. Once the online payment is made, the consumer is not required to fill the order
form on any other website as the information gets stored in the database and is updated
automatically.

Types of Security Attacks in E-Commerce

E-commerce attacks can come in many forms that can disrupt your ecommerce platform and
your customers’ accounts and data. Earning the trust of your customers requires a consistent
awareness of the evolving types of fraud and cyberattacks to help you ensure solutions are in
place across your sales funnel.
1. Financial fraud
Financial fraud takes several forms. It involves hackers gaining access to your customer's
personal information or payment information, then selling that information on the black market.
It also involves fraudsters using stolen credit card information to make illegitimate purchases
from your e-commerce store.
2. Phishing
Your customers are the target in a phishing scam, where a fraudster sends messages or emails
pretending to be you with the goal of obtaining their private information. These messages may
contain logos, URLs, and other information that appears to be legitimate, but it won't be you
sending it. They'll ask customers to verify their account by logging in and then use the
information to steal personal data.
3. Spamming
In an attempt to obtain personal information—or to affect your website's performance—
spammers may leave infected links in their comments or messages on your website, such as on
blog posts or contact forms. If you click on the links, they can take you to a spam website that
exposes you to malware.
4. Malware
Malware refers to malicious programs such as spyware, viruses, trojan horses, and
ransomware. Hackers install it on your computer system and spread it to your customers and
administrators, where it might swipe sensitive data on their systems and from your website.
5. Bad bots
People are generally aware that bots are all over the Internet, obtaining information about our
habits and behaviours. Your competition, however, could use bots to gather information about
your inventory and prices. They then use that information to change their prices. Or hackers can
send malicious bots to e-commerce checkout pages to buy large amounts of a product and scalp
it for up to 10 times the list price.
6. Distributed denial of service (DDoS) attacks
Distributed denial of service attacks happens when your servers receive an overwhelming
amount of requests from various IP addresses—usually untraceable—that cause your server to
crash. That means your e-commerce store isn't available to visitors, which disrupts your sales.
7. Fake return and refund fraud
Fraudsters can obtain money from you by committing fake returns and refund fraud in many
ways. Some use a stolen credit card to purchase merchandise, then claim that the card is closed
and request a refund to another card. Others use counterfeit receipts to request refunds for
items they haven't purchased.
8. Man-in-the-middle attacks
With technology evolving, so are hackers' schemes. Man-in-the-middle attacks allow the hacker
to listen in on the communications of e-commerce website users. These users are tricked into
using a public wireless network, enabling hackers to access their devices and see their
browsing history. They can also access credit card information, passwords, and usernames.
E-Commerce Security Solutions
The above e-commerce security threats might be scary, but there are ways to prevent them
from impacting your e-commerce marketplace. Some require fancy software, but others don't
take a lot of extra work to implement. And beyond protecting your online shop, your customers
will be happy that their personal data and information is kept private.
Address Verification Systems
An address verification system compares the customer's billing address against the credit card
issuer's information on file. If the addresses don't match, the system prevents the transaction
from going through.
Stronger passwords
Many e-commerce businesses don't require their users to provide strong passwords, making
client accounts easy to hack. Implement a system that requires your customers to use strong
passwords with letters, numbers, and symbols to make their accounts difficult to hack into.
While you're at it, make sure you and your administration have secure passwords, and ensure
user access is restricted to those who need it. When employees are terminated, revoke all
system access immediately.
Payment gateways
Rather than being responsible for storing and securing your clients' information, use a third
party such as PayPal or Stripe to handle payment transactions separately from your website.
This keeps your customers' information safer and makes you less attractive to hackers.
HTTPS
Many e-commerce businesses still use HTTP protocols, which are vulnerable to attacks. HTTPS
is more secure and protects sensitive information. Before switching to HTTPS, you'll need an up-
to-date SSL certification from your hosting company. It's worth it to give your customers peace
of mind and protect their information—and your business.

Cyber Laws
Cyber law, also known as internet law or digital law, signifies the legal regulations and
frameworks governing digital activities. It covers a large range of issues, including online
communication, e-commerce, digital privacy, and the prevention and prosecution of
cybercrimes. As the internet has become a fundamental part of our daily lives, cyber law has
become crucial in ensuring digital space's orderly and secure functioning.

UNIT-4
What Is Enterprise Resource Planning (ERP)?
Enterprise resource planning (ERP) is a platform companies use to manage and
integrate the essential parts of their businesses. Many ERP software applications are
critical to companies because they help them implement resource planning by
integrating all the processes needed to run their companies with a single system.
An ERP software system can also integrate planning, purchasing inventory, sales,
marketing, finance, human resources, and more.
Understanding Enterprise Resource Planning (ERP)
You can think of an enterprise resource planning system as the glue that binds
together the different computer systems for a large organization. Without an ERP
application, each department would have its system optimized for its specific tasks.
With ERP software, each department still has its system, but all of the systems can be
accessed through one application with one interface.
ERP applications also allow the different departments to communicate and share
information more easily with the rest of the company. It collects information about
the activity and state of different divisions, making this information available to other
parts, where it can be used productively.
ERP applications can help a corporation become more self-aware by linking
information about production, finance, distribution, and human resources together.
Because it connects different technologies used by each part of a business, an ERP
application can eliminate costly duplicates and incompatible technology. The process
often integrates accounts payable, stock control systems, order-monitoring systems,
and customer databases into one system.
How Enterprise Resource Planning Platforms Work
ERP has evolved over the years from traditional software models that made use of
physical client servers and manual entry systems to cloud-based software with
remote, web-based access. The platform is generally maintained by the company that
created it, with client companies renting services provided by the platform.
Businesses select the applications they want to use. Then, the hosting company loads
the applications onto the server the client is renting, and both parties begin working
to integrate the client's processes and data into the platform.
Once all departments are tied into the system, all data is collected on the server and
becomes instantly available to those with permission to use it. Reports can be
generated with metrics, graphs, or other visuals and aids a client might need to
determine how the business and its departments are performing.
A company could experience cost overruns if its ERP system is not implemented
carefully.
Types of ERP Systems
There's a number of different ERP solutions that can meet a variety of business
needs. This list is not meant to list every single type of ERP, though the list is pretty
comprehensive. Any business considering implementing an ERP system should be able
to find value in some of these types of systems, and multiple systems may be relevant
in any given situation.
On-Premise ERP
On-premises ERP systems involve purchasing the software licenses and installing the
ERP system directly onto a company's own servers. Companies have full control over
the system and data, as it resides within their premises. Customization and
integration with existing systems can be more extensive, and this type of ERP usually
requires dedicated IT resources for maintenance, updates, and security.
Cloud ERP
Cloud ERP systems are hosted on remote servers and accessed through the internet.
Cloud ERPs like SaaS products offer better scalability, allowing businesses to easily
adjust resources and features as needed without significant upfront investment in
hardware. Cloud ERP systems typically have a subscription-based pricing model, and
updates/maintenance are managed by the ERP provider (not the company itself).
Industry-Specific ERP
Industry-specific ERP systems are tailored to meet the unique needs and
requirements of particular industries. These systems often include industry-specific
modules, functionalities, and best practices to address the complexities of the
industry. For example, consider a manufacturing firm that is heavily reliant on
inventory, supply chain management, and distribution of goods. That type of ERP will
be vastly different than a client-based ERP such as a financial institution's ERP.
Open-Source ERP
An open-source ERP system (or any open-source software, for that matter) provides
users with access to the source code. This means a company can customize, modify,
or redistribute the ERP to better meet the company's needs. Implementing and
maintaining open-source ERP systems may require more technical expertise and
resources compared to commercial ERP solutions.
Small Business ERP
On the other hand, small business ERP systems are designed specifically for the needs
of small and medium-sized businesses (SMBs). These types of ERP systems try to offer
balance between being slightly niche while offering essential functionalities at a more
affordable price point. Because they are less robust, small business ERP solutions are
often easier to implement and require less customization compared to enterprise-
level ERP systems.
Tiered ERP
Tiered ERP systems offer different levels of functionality and scalability to cater to
businesses of varying sizes and complexity. Companies can choose the tier that best
matches their current needs and budget, with the option to upgrade or customize as
their requirements evolve. This would entail adding on modules as they become
relevant (i.e. a company that is scaling to international operations may wait to
implement foreign current modules).
Benefits of ERP
Businesses employ enterprise resource planning (ERP) for various reasons, such as
expanding, reducing costs, and improving operations. The benefits sought and realized
between companies may differ; however, some are worth noting.
Improves Accuracy and Productivity
Integrating and automating business processes eliminates redundancies and improves
accuracy and productivity. In addition, departments with interconnected processes
can synchronize work to achieve faster and better outcomes.
Improves Reporting
Some businesses benefit from enhanced real-time data reporting from a single source
system. Accurate and complete reporting help companies adequately plan, budget,
forecast, and communicate the state of operations to the organization and interested
parties, such as shareholders.
Increases Efficiency
ERPs allow businesses to quickly access needed information for clients, vendors, and
business partners. This contributes to improved customer and employee satisfaction,
quicker response rates, and increased accuracy rates. In addition, associated costs
often decrease as the company operates more efficiently.
ERP software also provides total visibility, allowing management to access real-time
data for decision-making.
Increases Collaboration
Departments are better able to collaborate and share knowledge; a newly synergized
workforce can improve productivity and employee satisfaction as employees are
better able to see how each functional group contributes to the mission and vision of
the company. Also, menial and manual tasks are eliminated, allowing employees to
allocate their time to more meaningful work.
ERP Weaknesses
An ERP system doesn't always eliminate inefficiencies within a business or improve
everything. The company might need to rethink how it's organized or risk ending up
with incompatible technology.
ERP systems usually fail to achieve the objectives that influenced their installation
because of a company's reluctance to abandon old working processes. Some
companies may also be reluctant to let go of old software that worked well in the
past. The key is to prevent ERP projects from being split into smaller projects, which
can result in cost overruns.
Employing change management principles throughout the ERP life cycle can prevent
or reduce failures that compromise full implementation.
ERP vs. CRM
ERP and customer relationship management (CRM) platforms are two different types
of software systems used in business. At their core, ERP focuses on internal business
processes and operations, while CRM is centered around managing interactions with
customers and prospects.
ERP systems are designed to integrate and automate core business functions. In
contrast, CRM systems are dedicated to managing customer relationships and
interactions. This can range from things like sales leads, marketing campaigns,
customer service inquiries, and contact management. While the goal of ERPs is to
streamline processes, the goal of CRMs is to enhance customer engagement,
satisfaction, and loyalty.
Despite their distinct focus areas, ERP and CRM systems often overlap in certain
areas. Many modern ERP systems include CRM functionalities. This integration
enables businesses to synchronize customer information, such as contact details,
purchase history, and communication logs, between ERP and CRM systems. For
example, a CRM would traditionally host a customer's purchase history. By looping
that into a broader ERP system, a company can predict when the customer will re-
order, make sure it has sufficient quantity on hand at a specific time, and make sure it
has enough personnel on hand at a specific time to fulfill the potential order.
ERP Solutions Providers
Some familiar names are leaders in ERP software. Oracle Corp. (ORCL) originally
supplied a relational database that integrated with ERP software developed by SAP
(SAP) before entering the broader enterprise market in a big way in the early 2000s.1
Microsoft (MSFT) has long been an industry leader, with many customers using
multiple software applications from the company.2
As cloud-based solutions have grown in popularity in recent years, the traditional ERP
industry leaders have seen challenges from upstarts such as Bizowie and
Workwise.34
ERP Examples
Fulton & Roark
Men's grooming product maker Fulton & Roark successfully implemented enterprise
resource planning to better track inventory and financial data. Like many other
businesses, the North Carolina company used spreadsheets to track inventory and
accounting software to record financial data.5
As the company grew, its processes lagged. Their antiquated inventory tracking
system did not account for changing costs, and the accounting software could not
record the metrics needed for key financial statements. These breakdowns created
manual processes, which further compromised time and resources.5
To eliminate unnecessary processes and centralize work, they chose the Oracle
NetSuite ERP system. Immediately, Fulton & Rourk was better able to identify
accounting errors related to inventory, eliminate costs from employing third parties
to evaluate their financial records, and better report financial positions.6
Cadbury
Cadbury, a global confectioner and maker of the popular chocolate Cadbury egg, also
successfully implemented an ERP system. The company had thousands of systems but
could not keep pace with its rapid growth and used ineffective warehouse
management systems.7
It implemented a system that integrated its thousands of applications, standardized
processes, and restructured warehouse management systems—breaking down silos
for seamless, integrated coordination of work.8
Tips for Choosing an ERP System
When selecting an ERP system, there's many things for you to consider. Here are
some key features to consider during your decision-making process:
• Ensure that the ERP system can scale with your business as it grows and evolves.
It should accommodate increasing transaction volumes, users, and data without
significant disruption or performance issues.
• Seek an ERP solution that allows for customization to adapt to your unique
business processes and requirements. You can get customizable workflows,
fields, forms, and reports from ERP systems fairly easily.
• Consider the ERP system's ability to integrate seamlessly with other software
applications you may already be using. Think about your CRM, e-commerce
platforms, payroll systems, and business intelligence tools. If it's important to
you, your ERP can likely communicate with each of them.
• If you plan on using your ERP often, choose an ERP system with an intuitive and
user-friendly interface that makes it easy to use. A well-designed interface can
help people buy into the software as well as simply make it more intuitive on
how to capitalize on all of the ERP features.
• If it's relevant to you, opt for an ERP solution that offers mobile accessibility.
Mobile access allows you to perform key tasks, access information, and make
decisions in more flexible ways which may be important based on how your
business operates.
• Prioritize data security and compliance features to protect sensitive business
information. Look for ERP systems with robust security measures, encryption
capabilities, access controls, audit trails, and compliance certifications. Note
that ERPs can be industry-specific, so some security measures may be more
relevant to your industry.
• Evaluate the ERP system's analytical capabilities. This means taking a look at its
built-in reporting tools, dashboards, and advanced analytics features. You may
 also want to think about how real-time information can be pulled in, if that's
important to your business.
• As you work through the selection process, assess the level of support and
maintenance provided by the ERP vendor. You'll want to make sure you get
technical support, software updates, patches, and documentation.
• Last, consider the total cost of ownership of the ERP system over its lifecycle.
This is not just the upfront implementation cost. Think about ongoing
maintenance fees, training costs, and potential hidden costs like "charge per
transaction" instances. You can also think through what future growth and
adding additional modules will cost.
What Is Enterprise Resource Planning?
Enterprise resource planning, or ERP, is an interconnected system that aggregates and
distributes information across a company. The goal of an ERP system is to
communicate relevant information from one area of a business to another. For
example, an ERP system could automatically notify the purchasing department when
the manufacturing department begins to run low on a specific type of raw material.
What Is the Importance of Enterprise Resource Planning?
Enterprise resource planning software offers single-system solutions that integrate
processes across the business. These applications allow users to interact within a
single interface, share information, and enable cross-functional collaboration. They
increase productivity, collaboration, and efficiency.
What Are the 5 Components of ERP?
The components of an ERP system depend on the organization's needs. However,
there are key features that each ERP should include. Generally, packages include
finance, human resource, logistics and manufacturing, supply chain management, and
customer relationship management.
What Are the 2 Main ERP Applications?
Which ones are the main applications depends on the business and the industry it
operates in. Most companies can benefit from supply chain management, logistics,
and financial applications to help them streamline their operations and expenses.
The Bottom Line
Enterprise resource planning (ERP) manages and integrates business processes
through a single system. With a better line of sight, companies can better plan and
allocate resources. Without ERP, companies tend to operate in silos, with each
department using its own disconnected system.
ERP systems promote the free flow of communication and sharing of knowledge
across an organization, the integration of systems for improved productivity and
efficiencies, and increased synergies across teams and departments. However,
moving to an ERP system will be counterproductive if the company's culture does not
adjust to the change and the company does not review how the structure of its
organization can support it.

UNIT-5
Information system, an integrated set of components for collecting, storing,
and processing data and for providing information, knowledge, and digital
products. Business firms and other organizations rely on information systems
to carry out and manage their operations, interact with their customers and
suppliers, and compete in the marketplace. Information systems are used to
run interorganizational supply chains and electronic markets.

Components of information systems

Computer hardware
Computer software
Telecommunications
Databases and data warehouses
Human resources and procedures

Open and closed systems

The main difference between them is the level of control over system access.
Closed systems have specific controls and procedures in place to ensure data
integrity.
Moreover, open systems must comply with these requirements and require
additional measures such as encryption and digital signature standards.
Management Information System (MIS)
Management Information System (MIS) is one of the five major
Computer Based Information Systems (CBIS). Its purpose is to meet the
general information needs of the managers in firm or organization. MIS is a
computer based system that makes information available to users with similar
needs. Management Information System (MIS) consists of following three
pillars: Management, Information, and System. These are explained as
following below.
1. Management: art of getting things done through and with the people of
in formally organized groups. Managerial functions:
(i) Planning
(ii) Organizing
(iii) Staffing
(iv) Directing
(v) Controlling
1. Information: data that have a meaning with a context ,where data is raw
facts about an entity (entity is the object of interest).
2. System: set of inter-related components with a clearly defined boundary
working together to achieve a common goal.
Why one should study MIS: It may be a student aspiring to become a
manager in some organisation, an entrepreneur or a professional. Information
system and information technology is a vital component of any successful
business and is regarded as a major functional area like any other functional
area of a business organization like marketing, finance, production, human
resources (HR) etc. Information systems play following 3 vital roles for a
business organisation:
1. Supports the business processes and operations of an organisation.
2. Support of decision making by employees and managers of an
organisation.
3. Support the strategies of an organisation for competitive advantage.
Advantages of MIS:
• Improves quality of an organization or an information content by
providing relevant information for sound decision making.
• MIS change large amount of data into summarize form and thereby avoid
confusion which may an answer when an information officer are flooded
with detailed fact.
• MIS facilitates integration of specialized activities by keeping each
department aware of problem and requirements of other departments.
• MIS serves as a link between managerial planning and control. It
improves the ability of management to evaluate and improve
performance.
Disadvantages:
• Too rigid and difficult to adapt.
• Resistance in sharing internal information between departments can
reduce the effectiveness.
• Hard to quantify benefit to justify implementation of MIS.
• Quality of output of an MIS is directly proportional to quality of input and
processes.
Major System in an Organizational Systems: Organizational
information system are logical rather than physical way of thinking about MIS.
The following are the management levels:
1. Strategic Planning Level: Plan
2. Management Control Level: Organize
3. Operational Control Level: Direct
Operational control level includes:
1. Marketing: It is the area in which considerable effort as spent in
describing how the computer could be applied to the entire range of
marketing operations.
2. Finance: It does not embrace title of financial information system
although computer based information system in that area are common.
For ex-payroll, taxation.
3. Human Resource: It represents area where most current attention is
being focused. Terms Human Resource Information System (HRIS), and
Human Resource Management System (HRMS) are common.
4. Manufacturing: It describes how the computer could be applied to the
entire range of information collection.
5. Information Resource: It also embraced computer processing and
applied the technology as both conceptual information system and
 physical manufacturing system. For example: quality control, cost
control.

6.

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PYQ's
What Is Data?
Data represents raw elements or unprocessed facts, including numbers and symbols to
text and images. When collected and observed without interpretation, these elements
remain just data—simple and unorganized. When these pieces are analyzed and
contextualized, they transform into something more meaningful.
Data comes in various forms:
Quantitative data, like an item’s weight, volume, or cost, is provided numerically.
Qualitative data is descriptive but non-numerical, such as a person’s name and sex.

What Is Information?
You get information when data is processed, organized, interpreted, and structured. The
comprehensible output derived from raw data helps inform decisions, strategies, and
actions. Information is essentially data made valuable and accessible—an integral
component of decision-making.
For instance, if data points include daily temperature readings over a year, information is
recognizing the trend of temperatures, understanding seasonal changes, and predicting
future weather conditions.

Expert Systems
Expert systems are computer programs designed to mimic a human expert's decision-
making abilities in a specific domain, utilised in applications requiring continuous
monitoring and decision-making, such as process control, fault diagnosis, and medical
diagnosis. The underlying idea behind these systems is that a human expert's knowledge
and expertise can be captured and encoded in a computer program, allowing the expert
system to mimic the expert's decision-making process.

What are the Types of e-Commerce Payment

Systems?
Credit Card
Debit Card
E-wallet
Smart Card Smart cards are similar to debit and credit cards in terms of
appearance. However, they have a microprocessor chip embedded in them. This
chip can store money, as well as a person’s personal and work-related
information. Smart cards provide faster processing at lower rates.
Net banking
Electronic funds transfer
BNPL
Cryptocurrency
Prepaid cards
What is enterprise application integration?
The solution to the lack of communication between enterprise apps is enterprise application
integration (EAI), the implementation of technologies that facilitate communication between
enterprise applications. Enterprise application integration establishes a middleware framework
that helps data flow freely between applications without significant changes to database
configurations or the applications themselves, leading to a streamlined process and increased
data availability.

What is online analytical processing?

Online analytical processing (OLAP) is software technology you can use to analyze business data from different
points of view. Organizations collect and store data from multiple data sources, such as websites, applications,
smart meters, and internal systems. OLAP combines and groups this data into categories to provide actionable
insights for strategic planning. For example, a retailer stores data about all the products it sells, such as color,
size, cost, and location. The retailer also collects customer purchase data, such as the name of the items
ordered and total sales value, in a different system. OLAP combines the datasets to answer questions such as
which color products are more popular or how product placement impacts sales.

Why is OLAP important?

Online analytical processing (OLAP) helps organizations process and benefit from a growing amount of digital
information. Some benefits of OLAP include the following.
Faster decision making
Businesses use OLAP to make quick and accurate decisions to remain competitive in a fast-paced economy.
Performing analytical queries on multiple relational databases is time consuming because the computer system
searches through multiple data tables. On the other hand, OLAP systems precalculate and integrate data so
business analysts can generate reports faster when needed.
Non-technical user support
OLAP systems make complex data analysis easier for non-technical business users. Business users can create
complex analytical calculations and generate reports instead of learning how to operate databases.
Integrated data view
OLAP provides a unified platform for marketing, finance, production, and other business units. Managers and
decision makers can see the bigger picture and effectively solve problems. They can perform what-if analysis,
which shows the impact of decisions taken by one department on other areas of the business.