Lecture Theory

Convergence of E-Commerce Technology

2009-02-17T02:54:00.002+08:00

Convergence

The growth of the Internet, computer telephony, electronic banking, interactive media services, mobile communications and related technologies, has paved the way for a new global network to emerge in the twenty-first century, subsuming the Internet and telephone networks.
Where in the twentieth century we had separate devices and transmission technologies for each communications function, nearly all data is now transmitted digitally, and there is increasing convergence between the devices used to connect to digital networks.

Mobile Communications

The voice and data communications industry is working to forge new technologies and standards to support mobile E-Commerce. These efforts are focusing on two key areas:
accessing information and services via the Internet from a phone other handheld device;
providing the necessary bandwidth to handle content in the fastest and most reliable way.

Product Code Technology

Some supermarkets, such as UK retailer Safeway, have already introduced do-it-yourself scanning to take the pressure off tills. Shoppers can:
- pick up a hand-held scanner on entering the supermarket;
- use it to monitor how much they are spending as they go along;
- print out an invoice when they have finished.

Content Providers

The global network’s content may increasingly be provided by media giants, providing entertainment, news and sports and there is likely to be a great deal of crossover with the retail sector, as consumers shopping for entertainment are persuaded to shop for other things.

Interactive TV

One of the big developments of the last few years has been the introduction of digital television, which in addition to providing a digital image has facilitated a range of interactive services, including:
- the provision of online programme information;
- interactive games on the television;
- the provision of pay-per-view programmes, such as big sporting events or recent films;
- the provision of online shopping services;
- an email service via your television.
All these services can be accessed using your remote control, although a special wireless ‘qwerty’ keyboard has also been developed to make use of the services easier.

Electronic Cash and Banking

Online banks are already appearing on the Internet, and established banks are having to adapt for the future. It has been possible for a while to manage your banking from software on a PC, but these types of facility are becoming enhanced and integrated with the emergent mobile technologies.

Voice Recognition and Disabled Access
Voice control is likely to become a viable alternative for Internet access as well as the control of domestic appliances.

Computer Telephony

By merging computer and telephone technologies, Computer Telephony Integration (CTI) can change the way we do business. Call centres and automated call reception are just the tip of the iceberg – CTI technology can be merged with Internet and web systems to create a customer interface.

Voice over IP (VoIP)

Voice over IP (VoIP) is voice delivered using the Internet protocol. This means sending voice information in digital form in discrete packets rather than in the traditional circuit-committed protocols of the Public Switched Telephone Network (PSTN). VoIP and Internet telephony avoid ordinary telephone charges.

Payment ......

2009-02-17T02:52:00.002+08:00

In this section we will examine the fulfillment process in terms of:
- Integrating online orders with back office systems;
- Distribution channels;
- Dispatch;
- Delivery;
- Handling customer returns.

Outsourcing the Fulfillment

As online sales move past the experimental phase, several factors combine to put new pressures on order fulfillment systems. These include:
- An expanded selection of products sold online;
- The need to move a large volume of small parcels;
- Rising customer expectations.

Activity

Retailers find that it’s relatively easy to distribute products in bulk through a wholesale, retailer, or distribution channel as compared to eCommerce distribution. However, difficulties can emerge when a company has many individual products that require distribution to the customer’s home, inventory control, and customer support.

Meeting Customer Expectations

There are a number of things that can be done to ensure that the fulfilment process provides a satisfactory conclusion to the whole purchasing cycle, including:

- Processing all orders at a line item level, so that each individual item ordered is clearly identified. This is particularly important where a multi-item order is placed and one or two of these are out of stock;

- Personalising orders so that the customer feels that full account has been taken of their individual needs. Specifying the actual name of the customer to whom the order should be delivered is particularly important in situations where it is being delivered to a business, otherwise it can be left lying around for days in reception waiting for the right person to come and collect it;

- Tracking the status of the order means that any customer enquiry can be resolved promptly and efficiently. Equally important is the fact that formal tracking of progress ensures that any problems arising out of non-delivery of the order are quickly identified and remedied;

- Communicating the order status to the customer is an excellent way of ensuring that they are kept fully informed of progress.

Payment

2009-02-17T02:49:00.002+08:00

Payment

Irrespective of the payment mechanism used, there are four key factors to consider at the outset when reviewing the possible options. These are:
- Acceptability: the payment system selected must be widely accepted by, and acceptable to merchants, thereby ensuring that the sale is processed without delay;
- Ease of integration: the website interface that is used by the user to input the payment details must be effective and integrated into the total network environment;
- Customer base: there must be enough users of the chosen payment system, and enough subsequent traffic, to justify the investment;
- Ease of use and ease of access: the payment system should be as easy to use and understand as possible, so that it caters for all potential levels of users.

Payment Options

- Shopping Cart and Payment Software
- Writing Your Own Interface
- Merchant Services
- Third Party Merchant Services
- Digital Cash
- Ecash
- Micropayments
- Purchasing Cards
- eCheques
- PayPal

E-payment methods:
1. Electronic payment cards (credit, debit, charge)
2. Virtual credit card
3. E-wallets ( or e-purse)
4. Smart cards
5. Electronic cash
6. Wireless payments
7. Stored-value card payments
8. Loyalty cards
9. Person-to-person payment methods
10. Payments made electronically at kiosks

Other method used primarily for B2B payments:
1. Electronic checks
2. Purchasing cards
3. Electronic letter of credit
4. Electronic funds transfer (EFT)
5. Electronic benefits transfer (EBT)
6. E-lines of credit

Applications of smart card
1. Loyalty cards
2. Financial applications
3. Information technology cards
4. Health and social welfare information cards
5. Transportation
6. Identification

Customer Confidence

One of the major problems that eCommerce has encountered in terms of end-user acceptance is the perception that many sites are insecure and the credit card detail of their customers are likely to be intercepted by hackers.

E-Marketing …

2009-02-17T02:47:00.002+08:00

Analysing website Visitors

When used effectively, site analysis software can provide you with valuable information about who is visiting your website and what pages they are viewing when they are there. Examples of the type of information that can be provided include:
- The sections of your site they are visiting;
- How long they stay on each individual page or in each section;
- The way that they navigate around your site;
- How they actually found your site.

Personalization

One of the great strengths of the Internet is the way in which it allows for the personalization of marketing techniques, so that the marketing message actually addresses individual needs. This is frequently referred to as one-to-one marketing. The concept relies on gathering information about the customer so that the right message can be sent at the right time to match their identified requirements.

This can be done via any of the following three options:
- Log files
- Forms
- Cookies

Customer Relationship Management

CRM is an information industry term for the overall strategy, incorporating methodologies, software, and Internet capabilities, which help a company, manage customer relationships in an organized way.

Customer Satisfaction

Recent research indicates that the following things can result in serious customer dissatisfaction:

1. The product they were trying to buy was out of stock – serious thought should be given to the levels of stock to hold. However, if an item is unavailable then the website should certainly inform the customers that this is so.

2. The purchased item wasn’t delivered on time – the key here is not to make delivery promises that can’t be met. It also highlights the need for the E-Commerce provider to work closely with any distribution company that they may use.

3. Delivery cost was too high – some E-Commerce providers entice customers by offering very low product prices and then look to claw back some of the margin by charging high delivery costs. This point confirms that such a practice should be avoided.

4. Connection trouble – the E-Commerce business should ensure that there is enough capacity to serve large volumes of customers at peak times. Nevertheless there are times when such problems may be related to the customer end and to general network congestion on the Internet.

5. Didn’t get a confirmation or status report – the order confirmation should be generated automatically after the order is received in the order database. Customers of all businesses expect to receive order and credit card confirmation..

Business to Consumer E-Commerce…..

2009-02-17T02:44:00.001+08:00

E-Marketing

Marketing is the effort of promoting goods and services and trying to sell them. It’s about trying to draw attention to your company’s products and services, to convince people to purchase them, and to turn first time purchasers into repeat purchasers.
The tools and techniques available to promote your website and products include:

- Online marketing tools;
- Search engine;
- Email promotion;
- Offline marketing activities.
All of these have a role to play and the optimum solution will probably employ a mix of them.

Domain names

Domain names are an enormous help in the branding of a company. Your domain name should be easy to remember, easy to spell, and should represent what your company is all about. If it is not found or remembered quickly, then potential customers will surf elsewhere and possibly find your competition. So it is essential to spend some time choosing the domain name that really reflects the business.

Getting the right domain name is also important in terms of branding the company. Research has shown that Internet users are busy and prefer to use a known brand as a short cut to obtain the goods and services they want as quickly as possible. Good brand names suggest something about the product and should help differentiate the product from competitors. The domain name should help to reinforce the brand and should, ideally, be short, memorable and easy to spell.

Online Marketing

There are a range of different tools and techniques available to enable you to undertake online marketing campaigns. Some of the most common that we will review in this section are:

- Banner adverts;
- Affiliate programs;
- Viral marketing;
- Exploiting newsgroups.

Search Engines

A search engine indexes pages automatically by using software known as spiders that explore the web and collect keyword information, which they store in huge databases. They potentially give a higher ranking to websites which have taken into consideration the needs of search engines in their structure and content;

Email Marketing

Email is the online equivalent of direct mail advertising. However email has at least three significant advantages over direct mail:
- There are no postal charges;
- It can easily provide more detailed information by directing recipients to the corporate website;
- It can be automatically individualized for specific users.

Marketing Overseas

The Internet offers companies large and small the opportunity to trade and compete in a global marketplace. However, before considering how to promote your offerings in other countries you need to have considered a variety of issues including logistics, trade laws, customs requirements, taxes, accepting payments etc.

Offline Marketing

Just as with online marketing, the goal of offline marketing is to attract visitors to your website. However, in this instance, there is not the scope for providing automatic hyperlinks that will direct visitors seamlessly to the site.
So, the focus of offline marketing has to be very firmly on promoting your web address. By highlighting the products and services you offer or the quality of the content, you are seeking to encourage the web user to log-on and type in your URL.
A major element of your offline marketing activity, therefore, is to incorporate your URL in all of your customer-facing literature. The URL should appear with just the same frequency as your company address and telephone number. Examples include:

- Letterheads;
- Business cards;
- Company brochures;
- Sales proposals;
- Details on the side of your company vehicles.

Business to Consumer E-Commerce…

2009-02-17T02:43:00.002+08:00

Building the Business Case

Just as with a business-to-business solution, a business case must be built before embarking on an implementation, which means:
- understanding your objectives;
- understanding the business model;
- balancing costs against profits.

In assessing the cost-effectiveness of a business-to-consumer application it is useful to make the distinction between:
- existing businesses taking advantage of the web;
- small-time entrepreneurs seeing an sales opportunity and setting up a small shop front;
- and new Internet start-up companies with innovative ideas.

Designing and Running an E-Commerce website

This section will cover some of the same ground as the ‘Developing a website’ unit, but will be much more oriented to E-Commerce issues.

Domain Names and Trade Marks

When you register a domain name, it is associated with the server on the Internet you designate during the period the registration is in effect. The domain name consists of the name (e.g. ‘mcdonalds’), followed by a suffix of one or more labels indicating the type and origin of the domain (e.g. .com or .co.uk).

Business to Consumer E-Commerce

2009-02-17T02:40:00.001+08:00

Introduction

The growth in the number of Internet users worldwide almost seems to have been matched by the number of innovative ways that have emerged for conducting electronic commerce over the Internet. Having a virtual presence not only minimizes (or indeed removes) the need for physical (and expensive) shop fronts, it also dramatically expands your potential customer base. A number of models for business-to-consumer
E-Commerce have emerged, and are outlined below. It should be remembered, however, that the potential is as broad as the human imagination. It should also be remembered that this is a very young market and that not all models are yet proven to make money – some are existing on market expectation.

Models for E-Commerce

Sales

The most obvious commercial use of the World Wide Web (WWW) was to use it as a shop window enabling people from all over the world to come and view your products and services. As confidence in the medium grew the potential for actually selling goods and taking money via websites became a reality. This sort of business originally flourished in the United States (which has a credit card culture) long before it did in the rest of the world and it is certainly the most common form of business-to- consumer
E-Commerce now in practice.

There are three routes into having an online sales presence:
- buying space on an internet ‘shopping mall’ and letting someone manage the service for you;
- buying an off-the-shelf shopfront/catalogue software package;
- building a system from scratch.

Interactive Options

There are a host of features available to today’s web designer now that browsing technology (and what it can support) has become more stable. These broaden the scope of how visitors can make use of a site, and therefore strengthen the E-Commerce solution. They empower the visitor to find out all the information they need before purchasing something – whether that be directly through information or from peer review.
Options include:
- password protected areas;
- chat rooms;
- bulletin boards/newsgroups;
- catalogues;
- credit card transactions.

Security
SSL vs SET
Confidentiality, Authentication, Integrity, Non-repudiation.

Business to Business E-Commerce…….

2009-02-17T02:39:00.001+08:00

The business considerations behind the development of B2B e-commerce

Assessing your Businesses Requirements

- Analysing the Information Flow
- Assessing Relationships with Trading Partners
- Reaching your Customer/End Consumer
- Expanding Your Business

The Business Case

- How to Calculate the Business Case
- Working in Tandem with Trading Partners
- Anticipated Costs
- Anticipated Benefits
- Anticipated Disruption During Implementation
- Planning for Future Developments

Project Management

- Internal Staff or External Consultants?
- A Multidisciplinary Team
- Project management
- Senior management
- Administration
- Finance
- Information technology
- Communications
- Marketing and sales

Business to Business E-Commerce

2009-02-17T02:37:00.001+08:00

Internet Option Introduction

This session will provide an overview of business-to-business and supply chain E-Commerce, outlining the business issues to be considered when implementing an E-Commerce solution.
E-Commerce Tools

Electronic Data Interchange (EDI)

EDI was developed to eradicate the need for re-keying in data, using agreed standards to enable computers to exchange electronic versions standard forms (such as purchase orders and invoices). National, international and industry specific standards exist.

- Batch EDI
- Financial EDI
- Interactive EDI
- Hybrid EDI
- Form-based EDI

Software

EDI software fulfils the following functions:
- data extraction;
- data encoding;
- data transmission;
- data receipt;
- data decoding;
- data insertion.
There may be a separate piece of software for each function, but it is more likely that one or two integrated applications will manage them.

The Impact on the Supply Chain

Much of what has been presented so far has been presented in the context of straight business-to-business trading relationships, and this may have disguised the considerable effect that E-Commerce has had on the supply chain.
The supply chain is the mechanism by which goods are moved between:
- suppliers of raw materials;
- manufacturers;
- wholesalers;
- retailers;
- finally to the end consumer.
It can involve a vastly complicated set of trading relationships and have equally complicated logistics implications

Impact of E-Commerce on Supply Chain Management
E-commerce impacts supply chain management in a variety of key ways. These
include:

Cost efficiency: E-commerce allows transportation companies of all sizes to exchange cargo documents electronically over the Internet. E-commerce enables shippers, freight forwarders and trucking firms to streamline document handling without the monetary and time investment required by the traditional document delivery systems. By using e-commerce, companies can reduce costs, improve data accuracy, streamline business processes, accelerate business cycles, and enhance customer service. Ocean carriers and their trading partners can exchange bill of lading instructions, freight invoices, container status messages, motor carrier shipment instructions, and other documents with increased accuracy and efficiency by eliminating the need to re-key or reformat documents. The only tools needed to take advantage of this solution are a personal computer and an Internet browser.

Changes in the distribution system: E-commerce will give businesses more flexibility
in managing the increasingly complex movement of products and information
between businesses, their suppliers and customers. E-commerce will close the link
between customers and distribution centers. Customers can manage the increasingly
complex movement of products and information through the supply chain.

Customer orientation: E-commerce is a vital link in the support of logistics and transportation services for both internal and external customers. E-commerce will help companies deliver better services to their customers, accelerate the growth of the e-commerce initiatives that are critical to their business, and lower their operating costs. Using the Internet for e-commerce will allow customers to access rate information, place delivery orders, track shipments and pay freight bills.

E-commerce makes it easier for customers to do business with companies: Anything that simplifies the process of arranging transportation services will help build companies' business and enhance shareholder value. By making more information available about the commercial side of companies, businesses will make their web site a place where customers will not only get detailed information about the services the company offers, but also where they can actually conduct business with the company.

Ultimately, web sites can provide a universal, self-service system for customers. Shippers can order any service and access the information they need to conduct business with transportation companies exclusively online. E-commerce functions are taking companies a substantial step forward by providing customers with a faster and easier way to do business with them.

Shipment tracking: E-commerce will allow users to establish an account and obtain real-time information about cargo shipments. They may also create and submit bills of lading, place a cargo order, analyze charges, submit a freight claim, and carry out many other functions. In addition, e-commerce allows customers to track shipments down to the individual product and perform other supply chain management and decision support functions. The application uses encryption technology to secure business transactions.

Shipping notice: E-commerce can help automate the receiving process by electronically transmitting a packing list ahead of the shipment. It also allows companies to record the relevant details of each pallet, parcel, and item being shipped.

Freight auditing: This will ensure that each freight bill is efficiently reviewed for accuracy. The result is a greatly reduced risk of overpayment, and the elimination of countless hours of paperwork, or the need for a third-party auditing firm. By intercepting duplicate billings and incorrect charges, a significant percent of shipping costs will be recovered. In addition, carrier comparison and assignment allows for instant access to a database containing the latest rates, discounts, and allowances for most major carriers, thus eliminating the need for unwieldy charts and tables.

Shipping Documentation and Labeling: There will be less need for manual intervention because standard bills of lading, shipping labels, and carrier manifests will be automatically produced; this includes even the specialized export documentation required for overseas shipments. Paperwork is significantly reduced and the shipping department will therefore be more efficient.

Online Shipping Inquiry: This gives instant shipping information access to anyone in the company, from any location. Parcel shipments can be tracked and proof of delivery quickly confirmed. A customer's transportation costs and performance can be analyzed, thus helping the customer negotiate rates and improve service.

The Technical Components of an E-Commerce System (continued)

2009-02-17T02:35:00.002+08:00

E-Commerce standards for both general and specific e-commerce applications.

Messaging Option

E-Commerce standards for both general and specific e-commerce applications.
• Fax Metaphor
• Email
• Value Added Networks - VANs
• X.400
• Electronic Faxes
• Voice Messaging
• Network Telephony (NCC: page. 49 - 50)

Internet Option

• A Brief History of the Internet
• The Internet began with ARPANET – a WAN started by the US Department of Defense for research into networking in 1969. One of the aims was to provide a way of connecting communications and intelligence centres in a robust way, so that if one was destroyed in war, or simply suffered machine failure, information could be automatically routed around the hole in the network.

• Many people contributed to the standards for communications protocols which made the network function. Researchers wrote their proposals in a paper called a ‘Request for Comments’ (RFC), and published it on the new medium itself. The first RFC (RFC0001) was written on 7 April 1969 and there are now well over 2000 RFCs.

• ARPANET was opened to non-military users later in the 1970s, primarily big universities – although at this stage it was still a research tool also used for file transfer and primitive email. The network started to expand internationally around 1972.

• It was not until the early to mid-1980s that the services we use most now started appearing on the Internet. Prior to 1984, all Internet addresses were strings of numbers (IP addresses). The mechanism by which servers are given names (e.g. ibm.com) was then introduced and email and other protocols followed. For example, RFC-822 describes the format for email headers.

• HTTP (Hyper-Text-Transfer-Protocol), the underlying mechanism of the World Wide Web was not invented until 1989, by Tim Berners-Lee. He was a physicist working at CERN, the European Particle Physics Laboratory, and wanted a way for physicists to share information about their research. Initially the web was text only, and web browsers were also editors, so people could work on each other’s documents.
o Graphics came later with a browser called NCSA Mosaic. The start-up company Netscape improved on this and the number of users grew dramatically with their free trial versions of their browser. Over 80% of web users were using Netscape’s product.

o The graphical interface, combined with advances in modem technology and growth in the number of ISPs opened up the Internet to vast numbers of novice users. Prior to this, home computer users were largely limited to using ‘bulletin boards’ which has their own proprietary interface. Companies like AOL and Compuserve, impressed with the rapid growth of the web, and fearful of being left behind, connected their networks to the Internet and offered their existing users access.

o Microsoft all but abandoned its own content network MSN and rapidly embraced the Internet, incorporating its own browser (Internet Explorer) into its Windows operating system

ISDN (Integrated Services Digital Network)

2009-02-17T02:31:00.003+08:00

As all modern telephone exchanges transmit data digitally anyway, why do we need modems at all? This is because the connection between the home or office and the local exchange is still typically by analogue signals along copper wires. This is called the 'subscriber loop'. ISDN (Integrated Services Digital Network) removes the need for a modem by replacing this last analogue link by a digital one.

Conventional telephone equipment will not work with an ISDN line without a special terminal adapter (TA).

ISDN telephones provide a much clearer voice signal and dialling is much faster. PCs equipped with a TA card can connect to the Internet, or another PC, in a fraction of a second and data transmission is faster than the best modems (64 or 128 Kbits/s). ISDN is available as basic rate (equivalent to the capacity of two phone lines or 128 Kbits/s) for domestic or small office use, or primary rate, which gives an aggregate bandwidth of over 2 Mbits/s in Europe. North American ISDN offers slightly different configurations and bandwidth.

ISDN has all sorts of applications in the world of eCommerce - its use really is dependent on the type of solution being looked at. A real-life example is its use to connect a remote (perhaps home) office to a main office computer network so that an executive can work remotely but have all the benefits of being in the main office. However, one of the drawbacks to using ISDN is that it is still essentially a dial-up service, and each channel is charged at normal telephone rates. So using both channels becomes quite expensive.

Broadband

The explosive growth in the numbers of business people working remotely from their head office (often in offices at home) coupled with the slower than expected take-up of ISDN has resulted in the demand for new services to provide faster Internet connections at more competitive rates.

Broadband services are based on a variety of transmission technologies:

• DSL (Digital Subscriber Line) services, that make use of existing telephony infrastructure;
• Cable Modem services, that make use of cable TV infrastructure;
• Metropolitan Area Ethernet services, that generally require the installation of new cable infrastructure, often based on fibre optic cabling, although some variants of this technology make use of DSL technology.

ADSL

The most common DSL service available is the ADSL service. The 'A' stands for 'Asymmetric', which means that the data transfer rates are not the same in both directions. The transmission rate from the subscriber to the Internet is lower than in the reverse direction; the idea here is that downloading large web pages will account for a high proportion of the use, whereas the volume of data that needs to be transmitted from the user to the network is generally smaller.

The data rates available with ADSL, and in fact the actual availability of ADSL, depend critically on the distance between the subscriber and the nearest digital telephone exchange, and also on the number of subscribers that are using the service. Typically the service offers up to 500 Kilobits/second for downloads, and up to 250 Kilobits/second for uploads. So, unlike leased lines, ADSL gives no guarantees as to the actual transmission rates that will be made available.

Cable Modems

The Cable Modem services offered by the cable TV companies are only available in those areas already served by a cable TV network. The data transmission rates available with these services are similar to ADSL, and as with ADSL, the number of subscribers sharing the infrastructure affects the transmission rates that are actually delivered. With both ADSL and Cable Modem services, it is a simple matter to connect the cable modem or the ADSL filter into an existing LAN, allowing the external Internet connection to be accessed by all of the PCs connected to the LAN. A router is used to achieve this. One side of the router connects to the LAN, and the other side to the cable modem or the ADSL filter.

Metropolitan Area Ethernet services
Where significantly higher data transmission rates are needed, Metropolitan Area Ethernet services are emerging that will allow data rates of up to 10 Gigabits/second to be achieved between the customer premises and the service provider, if suitable fibre optic cabling is available (or can be installed) in order to make this possible. This kind of approach might be used in order to allow a large company that was spread across a number of sites to interconnect their LANs, making them look like one single LAN from the point of view of the users.

Leased Lines

Telecoms operators offer a variety of options for permanent connections for data transmission. These include ISDN, but also higher capacity dedicated links and variable bandwidth links, where capacity is shared with other users. Connections are also available from 'network providers', companies which have private network capacity who lease some or all of their capacity from telecoms companies. Leased lines may be used to connect LANs into a WAN (e.g. head office to a branch) or for teleconferencing.

Wireless Networking

The majority of networking installations to date have been based on fixed cabling of one kind or another, from coaxial cables to twisted pair cabling and optical fibre. The problem with cable-based networking infrastructures is just that - they are cable-based, and so every device that needs to connect to the LAN has to have a cable trailing from it. Two relatively new networking technologies aim to change the way we think about constructing and using LAN installations:

• 802.11 Wireless LANs, sometimes known as 'Wi-Fi' (an adaption of the popular home entertainment term 'Hi-Fi');
• Bluetooth.

Wireless LAN
A wireless LAN, as the name implies, offers a wireless connection between a computer system and the LAN, via a wireless access point. The data transmission rates that can be achieved are relatively low when compared to the performance of the early 10 Megabits/second Ethernet LANs, but are more than adequate for connecting the average PC or laptop to a LAN, unless applications that demand high data rates are being used.
Wireless access points generally have an Ethernet port that allows them to be connected to a conventional wired LAN backbone, but for small business use, it is possible to network a number of PCs together using only a wireless access point.

Connecting a PC or laptop to the wireless LAN involves the use of a wireless LAN interface that will slot into the PCMCIA socket of a laptop, or plugs into a USB socket of a desktop PC. Increasingly, modern laptop computers are being manufactured with inbuilt wireless LAN capability, in anticipation that they will be used in this way. Assuming that the security features of the technology have been correctly set up, the wireless 'connection' between the computer and the wireless access point is established automatically when the two devices are within radio range. The range of transmission is variable, depending on the construction of the building that it is used in, but can cover distances of up to 100 metres under the right conditions. If it is necessary to use more than one wireless access point to achieve the necessary coverage within a building, a wireless-enabled PC will automatically connect to the access point that offers the best signal.

Bluetooth

Bluetooth is a technology that was originally conceived as a means of replacing the cables between a computer and its peripherals - for example, printers, scanners, and so on. The data transfer rates that it can achieve are adequate for this kind of use, but not for connecting a PC to a LAN. It is now starting to appear in conjunction with other kinds of devices as well - for example, to connect a palmtop computer to a host PC, or to connect a hands free kit to a mobile phone. The transmission range for Bluetooth is significantly shorter - tens rather than hundreds of metres, and as less power is needed to drive the radios in Bluetooth devices, this technology is more appropriate than Wi-Fi for use in smaller, low power devices.

Business to Consumer E-Commerce

2008-12-02T00:40:00.000+08:00

Introduction

The growth in the number of Internet users worldwide almost seems to have been matched by the number of innovative ways that have emerged for conducting electronic commerce over the Internet. Having a virtual presence not only minimizes (or indeed removes) the need for physical (and expensive) shop fronts, it also dramatically expands your potential customer base. A number of models for business-to-consumer

E-Commerce have emerged, and are outlined below. It should be remembered, however, that the potential is as broad as the human imagination. It should also be remembered that this is a very young market and that not all models are yet proven to make money – some are existing on market expectation.

Models for E-Commerce

Sales

The most obvious commercial use of the World Wide Web (WWW) was to use it as a shop window enabling people from all over the world to come and view your products and services. As confidence in the medium grew the potential for actually selling goods and taking money via websites became a reality. This sort of business originally flourished in the United States (which has a credit card culture) long before it did in the rest of the world and it is certainly the most common form of business-to- consumer
E-Commerce now in practice.

There are three routes into having an online sales presence:

buying space on an internet ‘shopping mall’ and letting someone manage the service for you;

buying an off-the-shelf shopfront/catalogue software package;

building a system from scratch.

Interactive Options

There are a host of features available to today’s web designer now that browsing technology (and what it can support) has become more stable. These broaden the scope of how visitors can make use of a site, and therefore strengthen the E-Commerce solution. They empower the visitor to find out all the information they need before purchasing something – whether that be directly through information or from peer review.

Options include:

password protected areas;

chat rooms;

bulletin boards/newsgroups;

catalogues;

credit card transactions.

Security

SSL vs SET

Confidentiality, Authentication, Integrity, Non-repudiation.

Business to Business E-Commerce…….

2008-11-12T00:35:00.000+08:00

Assessing your Businesses Requirements

Analysing the Information Flow
Assessing Relationships with Trading Partners
Reaching your Customer/End Consumer
Expanding Your Business

The Business Case

How to Calculate the Business Case
Working in Tandem with Trading Partners
Anticipated Costs
Anticipated Benefits
Anticipated Disruption During Implementation
Planning for Future Developments

Project Management

Internal Staff or External Consultants?
A Multidisciplinary Team
Project management
Senior management
Administration
Finance
Information technology
Communications
Marketing and sales

Topic Business to Business E-Commerce

2008-10-29T00:29:00.002+08:00

Internet Option Introduction

This session will provide an overview of business-to-business and supply chain E-Commerce, outlining the business issues to be considered when implementing an E-Commerce solution.

E-Commerce Tools

Electronic Data Interchange (EDI)

EDI was developed to eradicate the need for re-keying in data, using agreed standards to enable computers to exchange electronic versions standard forms (such as purchase orders and invoices). National, international and industry specific standards exist.

Batch EDI

Financial EDI

Interactive EDI

Hybrid EDI

Form-based EDI

Software

EDI software fulfils the following functions:

data extraction;

data encoding;

data transmission;

data receipt;

data decoding;

data insertion.

There may be a separate piece of software for each function, but it is more likely that one or two integrated applications will manage them.

The Impact on the Supply Chain

Much of what has been presented so far has been presented in the context of straight business-to-business trading relationships, and this may have disguised the considerable effect that E-Commerce has had on the supply chain.

The supply chain is the mechanism by which goods are moved between:

suppliers of raw materials;

manufacturers;

wholesalers;

retailers;

finally to the end consumer.

It can involve a vastly complicated set of trading relationships and have equally complicated logistics implications

Impact of E-Commerce on Supply Chain Management

E-commerce impacts supply chain management in a variety of key ways. These

include:

Cost efficiency: E-commerce allows transportation companies of all sizes to exchange cargo documents electronically over the Internet. E-commerce enables shippers, freight forwarders and trucking firms to streamline document handling without the monetary and time investment required by the traditional document delivery systems. By using e-commerce, companies can reduce costs, improve data accuracy, streamline business processes, accelerate business cycles, and enhance customer service. Ocean carriers and their trading partners can exchange bill of lading instructions, freight invoices, container status messages, motor carrier shipment instructions, and other documents with increased accuracy and efficiency by eliminating the need to re-key or reformat documents. The only tools needed to take advantage of this solution are a personal computer and an Internet browser.

Changes in the distribution system: E-commerce will give businesses more flexibility

in managing the increasingly complex movement of products and information

between businesses, their suppliers and customers. E-commerce will close the link

between customers and distribution centers. Customers can manage the increasingly

complex movement of products and information through the supply chain.

Customer orientation: E-commerce is a vital link in the support of logistics and transportation services for both internal and external customers. E-commerce will help companies deliver better services to their customers, accelerate the growth of the e-commerce initiatives that are critical to their business, and lower their operating costs. Using the Internet for e-commerce will allow customers to access rate information, place delivery orders, track shipments and pay freight bills.

E-commerce makes it easier for customers to do business with companies: Anything that simplifies the process of arranging transportation services will help build companies' business and enhance shareholder value. By making more information available about the commercial side of companies, businesses will make their web site a place where customers will not only get detailed information about the services the company offers, but also where they can actually conduct business with the company.

Ultimately, web sites can provide a universal, self-service system for customers. Shippers can order any service and access the information they need to conduct business with transportation companies exclusively online. E-commerce functions are taking companies a substantial step forward by providing customers with a faster and easier way to do business with them.

Shipment tracking: E-commerce will allow users to establish an account and obtain real-time information about cargo shipments. They may also create and submit bills of lading, place a cargo order, analyze charges, submit a freight claim, and carry out many other functions. In addition, e-commerce allows customers to track shipments down to the individual product and perform other supply chain management and decision support functions. The application uses encryption technology to secure business transactions.

Shipping notice: E-commerce can help automate the receiving process by electronically transmitting a packing list ahead of the shipment. It also allows companies to record the relevant details of each pallet, parcel, and item being shipped.

Freight auditing: This will ensure that each freight bill is efficiently reviewed for accuracy. The result is a greatly reduced risk of overpayment, and the elimination of countless hours of paperwork, or the need for a third-party auditing firm. By intercepting duplicate billings and incorrect charges, a significant percent of shipping costs will be recovered. In addition, carrier comparison and assignment allows for instant access to a database containing the latest rates, discounts, and allowances for most major carriers, thus eliminating the need for unwieldy charts and tables.

Shipping Documentation and Labeling: There will be less need for manual intervention because standard bills of lading, shipping labels, and carrier manifests will be automatically produced; this includes even the specialized export documentation required for overseas shipments. Paperwork is significantly reduced and the shipping department will therefore be more efficient.

Online Shipping Inquiry: This gives instant shipping information access to anyone in the company, from any location. Parcel shipments can be tracked and proof of delivery quickly confirmed. A customer's transportation costs and performance can be analyzed, thus helping the customer negotiate rates and improve service.

The Technical Components of an E-Commerce System (continued)

2008-10-24T02:08:00.003+08:00

E-Commerce standards for both general and specific e-commerce applications.

Messaging Option

E-Commerce standards for both general and specific e-commerce applications.

Fax Metaphor

Value Added Networks - VANs

X.400

Electronic Faxes

Voice Messaging

Network Telephony (NCC: page. 49 - 50)

Internet Option

A Brief History of the Internet
The Internet began with ARPANET – a WAN started by the US Department of Defense for research into networking in 1969. One of the aims was to provide a way of connecting communications and intelligence centres in a robust way, so that if one was destroyed in war, or simply suffered machine failure, information could be automatically routed around the hole in the network.

Many people contributed to the standards for communications protocols which made the network function. Researchers wrote their proposals in a paper called a ‘Request for Comments’ (RFC), and published it on the new medium itself. The first RFC (RFC0001) was written on 7 April 1969 and there are now well over 2000 RFCs.

ARPANET was opened to non-military users later in the 1970s, primarily big universities – although at this stage it was still a research tool also used for file transfer and primitive email. The network started to expand internationally around 1972.

It was not until the early to mid-1980s that the services we use most now started appearing on the Internet. Prior to 1984, all Internet addresses were strings of numbers (IP addresses). The mechanism by which servers are given names (e.g. ibm.com) was then introduced and email and other protocols followed. For example, RFC-822 describes the format for email headers.

HTTP (Hyper-Text-Transfer-Protocol), the underlying mechanism of the World Wide Web was not invented until 1989, by Tim Berners-Lee. He was a physicist working at CERN, the European Particle Physics Laboratory, and wanted a way for physicists to share information about their research. Initially the web was text only, and web browsers were also editors, so people could work on each other’s documents.

Graphics came later with a browser called NCSA Mosaic. The start-up company Netscape improved on this and the number of users grew dramatically with their free trial versions of their browser. Over 80% of web users were using Netscape’s product.

The graphical interface, combined with advances in modem technology and growth in the number of ISPs opened up the Internet to vast numbers of novice users. Prior to this, home computer users were largely limited to using ‘bulletin boards’ which has their own proprietary interface. Companies like AOL and Compuserve, impressed with the rapid growth of the web, and fearful of being left behind, connected their networks to the Internet and offered their existing users access.

Microsoft all but abandoned its own content network MSN and rapidly embraced the Internet, incorporating its own browser (Internet Explorer) into its Windows operating system

Technical Components of an E-Commerce System

2008-10-24T01:20:00.002+08:00

ISDN (Integrated Services Digital Network)

Conventional telephone equipment will not work with an ISDN line without a special terminal adapter (TA).

ISDN telephones provide a much clearer voice signal and dialling is much faster. PCs equipped with a TA card can connect to the Internet, or another PC, in a fraction of a second and data transmission is faster than the best modems (64 or 128 Kbits/s). ISDN is available as basic rate (equivalent to the capacity of two phone lines or 128 Kbits/s) for domestic or small office use, or primary rate, which gives an aggregate bandwidth of over 2 Mbits/s in Europe. North American ISDN offers slightly different configurations and bandwidth.

ISDN has all sorts of applications in the world of eCommerce - its use really is dependent on the type of solution being looked at. A real-life example is its use to connect a remote (perhaps home) office to a main office computer network so that an executive can work remotely but have all the benefits of being in the main office. However, one of the drawbacks to using ISDN is that it is still essentially a dial-up service, and each channel is charged at normal telephone rates. So using both channels becomes quite expensive.

Broadband

The explosive growth in the numbers of business people working remotely from their head office (often in offices at home) coupled with the slower than expected take-up of ISDN has resulted in the demand for new services to provide faster Internet connections at more competitive rates.

Broadband services are based on a variety of transmission technologies:

DSL (Digital Subscriber Line) services, that make use of existing telephony infrastructure;

Cable Modem services, that make use of cable TV infrastructure;

Metropolitan Area Ethernet services, that generally require the installation of new cable infrastructure, often based on fibre optic cabling, although some variants of this technology make use of DSL technology.

ADSL

The most common DSL service available is the ADSL service. The 'A' stands for 'Asymmetric', which means that the data transfer rates are not the same in both directions. The transmission rate from the subscriber to the Internet is lower than in the reverse direction; the idea here is that downloading large web pages will account for a high proportion of the use, whereas the volume of data that needs to be transmitted from the user to the network is generally smaller.

The data rates available with ADSL, and in fact the actual availability of ADSL, depend critically on the distance between the subscriber and the nearest digital telephone exchange, and also on the number of subscribers that are using the service. Typically the service offers up to 500 Kilobits/second for downloads, and up to 250 Kilobits/second for uploads. So, unlike leased lines, ADSL gives no guarantees as to the actual transmission rates that will be made available.

Cable Modems

The Cable Modem services offered by the cable TV companies are only available in those areas already served by a cable TV network. The data transmission rates available with these services are similar to ADSL, and as with ADSL, the number of subscribers sharing the infrastructure affects the transmission rates that are actually delivered. With both ADSL and Cable Modem services, it is a simple matter to connect the cable modem or the ADSL filter into an existing LAN, allowing the external Internet connection to be accessed by all of the PCs connected to the LAN. A router is used to achieve this. One side of the router connects to the LAN, and the other side to the cable modem or the ADSL filter.

Metropolitan Area Ethernet services

Where significantly higher data transmission rates are needed, Metropolitan Area Ethernet services are emerging that will allow data rates of up to 10 Gigabits/second to be achieved between the customer premises and the service provider, if suitable fibre optic cabling is available (or can be installed) in order to make this possible. This kind of approach might be used in order to allow a large company that was spread across a number of sites to interconnect their LANs, making them look like one single LAN from the point of view of the users.

Leased Lines

Telecoms operators offer a variety of options for permanent connections for data transmission. These include ISDN, but also higher capacity dedicated links and variable bandwidth links, where capacity is shared with other users. Connections are also available from 'network providers', companies which have private network capacity who lease some or all of their capacity from telecoms companies. Leased lines may be used to connect LANs into a WAN (e.g. head office to a branch) or for teleconferencing.

Wireless Networking

The majority of networking installations to date have been based on fixed cabling of one kind or another, from coaxial cables to twisted pair cabling and optical fibre. The problem with cable-based networking infrastructures is just that - they are cable-based, and so every device that needs to connect to the LAN has to have a cable trailing from it. Two relatively new networking technologies aim to change the way we think about constructing and using LAN installations:

802.11 Wireless LANs, sometimes known as 'Wi-Fi' (an adaption of the popular home entertainment term 'Hi-Fi');

Bluetooth.

Wireless LAN

A wireless LAN, as the name implies, offers a wireless connection between a computer system and the LAN, via a wireless access point. The data transmission rates that can be achieved are relatively low when compared to the performance of the early 10 Megabits/second Ethernet LANs, but are more than adequate for connecting the average PC or laptop to a LAN, unless applications that demand high data rates are being used.

Wireless access points generally have an Ethernet port that allows them to be connected to a conventional wired LAN backbone, but for small business use, it is possible to network a number of PCs together using only a wireless access point.

Connecting a PC or laptop to the wireless LAN involves the use of a wireless LAN interface that will slot into the PCMCIA socket of a laptop, or plugs into a USB socket of a desktop PC. Increasingly, modern laptop computers are being manufactured with inbuilt wireless LAN capability, in anticipation that they will be used in this way. Assuming that the security features of the technology have been correctly set up, the wireless 'connection' between the computer and the wireless access point is established automatically when the two devices are within radio range. The range of transmission is variable, depending on the construction of the building that it is used in, but can cover distances of up to 100 metres under the right conditions. If it is necessary to use more than one wireless access point to achieve the necessary coverage within a building, a wireless-enabled PC will automatically connect to the access point that offers the best signal.

Bluetooth

Bluetooth is a technology that was originally conceived as a means of replacing the cables between a computer and its peripherals - for example, printers, scanners, and so on. The data transfer rates that it can achieve are adequate for this kind of use, but not for connecting a PC to a LAN. It is now starting to appear in conjunction with other kinds of devices as well - for example, to connect a palmtop computer to a host PC, or to connect a hands free kit to a mobile phone. The transmission range for Bluetooth is significantly shorter - tens rather than hundreds of metres, and as less power is needed to drive the radios in Bluetooth devices, this technology is more appropriate than Wi-Fi for use in smaller, low power devices.

Introduction to E-Commerce

2008-10-21T13:48:00.000+08:00

Defining E-Commerce

E-commerce covers any form of business transaction or information exchange that is executed using any form of information and communications technology. This embraces business-to-business; business-to-consumer; and government-to-nation; as well as exchange of tools like the Internet and the World Wide Web, intranets, extranets, electronic mail and Electronic Data Interchange. (UK’s e-centre)

Brief history of E-Commerce;

§ look at what drives E-Commerce;

§ look at the components of an E-Commerce system;

§ list the range of E-Commerce techniques; identifying them within different business contexts;

§ start to look at the impact of E-Commerce on the organisation.

The application of advanced information technology to increase the effectiveness of the business relationships between trading partners. (Automotive Industry Action Group in North America)

The enablement of a business vision supported by advanced information technology improves efficiency and effectiveness within the trading process. (E-Commerce Innovation Centre at Cardiff University)

The development of E-Commerce in the context of technological developments of the IT world today.

As the current environment provides affordable, more powerful and user-friendly systems, this has promoted the need of a system as a tool provider for business.

The development of EDI (Electronic Data Interchange) brought about data to transfer from one system to another. EDI was widely used in the 1980s and early 1990s. The latter developments were of the X.400 and the Internet.

Electronic commerce (E-commerce)

The process of buying, selling, transferring, or exchanging products, services and/or information via computer networks, including the Internet

The origins of e-commerce first started with innovations such as electronic fund transfer (EFT) in which funds could be routed electronically form one organisation to another

Then came Electronic Data Interchange (EDI), a technology used to electronically transfer routine documents, which expanded electronic transfers from financial transactions to other types of transaction processing such as ordering

EDI required having expensive dedicated and private lines between the trading parties

Internet and WWW overcome the shortcomings of EDI

Electronic Business

A broader definition of EC, includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conduction electronic transactions within an organisation.

Types of EC organisations

Brick and mortar (old-economy) – perform most of their business off-line, selling physical products by means of physical agents

Virtual organization/pure-play/click and order – conduct their business, activities solely online

Click-and-mortar – conduct some e-commerce activities, but do their primary business in the physical world

World Wide Web

Created in the early 1990s Tim Berners-Lee

Software that allows users to exchange information as it was designed to help scientists share online information using a single, unified interface.

Mid-1993, Marc Andressen, an undergraduate of University of Illinois, wrote a program called Mosaic, which made using the web as easy as pointing and clicking at pictures and underlined words

Mosaic was the first graphical browser that was launched with 150 websites holding a few thousand web-pages.

1995 there were about 10,000 sites, a number that had grown to 4 - 5 m by mid-1999.

Commercial use of the Internet has skyrocketed, with companies using the Internet to communicate with each other, with their customers, with their partners and with their suppliers.

Electronic markets

Classification of EC by the nature of the transactions / interactions:

1. Business-to-business (B2B) – all of the participants are businesses or other organizations e.g suppliers

2. Business-to-Consumer (B2C) / e-tailing – includes retail transactions of products and services from businesses to individual shoppers

3. Business-to-business-to-consumer (B2B2C) – a business provides some product or service to a client business that maintain its own customers

4. Consumer-to-business (C2B) – individuals who use the Internet to sell products or services to organisations, or individuals seek sellers to bid on products or services they need

5. Consumer-to-consumer (C2B) - consumers ell directly to other consumers

6. Peer-to-peer applications – technology that enables networked peer computers to share data and processing with each other directly, can be used in C2C, B2B, and B2C ecommerce

7. Mobile-commerce (m-commerce) – e-commerce transactions and activities conducted in a wireless environment

8. Intra-business EC – includes all internal organisational activities that involve the exchange of goods, services, or information among various units and individuals in an organisation

9. Location-based commerce (l-commerce) – m-commerce transactions targeted to individuals in specific locations, at specific times

10. Business-to-employees (B2E) – organisations deliver services, information or products to its individual employees

11. Collaborative commerce (c-commerce) – individuals or groups communicate or collaborate online

12. E-learning – online delivery of information for the purposes of training or education

13. Exchange-to-exchange (E2E) – electronic exchanges formally connect to one another for the purpose of exchanging information

14. E-government – a government entity buys or provides goods services, or information to businesses (G2B)or individual citizens (G2C)

Benefits

· Global reach – expands the marketplace to national and international markets. With minimal capital outlay, a company can easily and quickly locate the best supplier, more customers, and the most suitable business partners worldwide.

Cost reduction – decrease the cost of creating, processing, distributing, storing, and retrieving paper-based information.

Supply chain Improvements – supply chain inefficiencies, such as excessive inventories and delivery delays can be minimized with EC.

Extended hours – 24/7/365 the business always open on the Web, with no overtime or other extra costs.

Limitations

costs of a technological solution

some protocols are not standardized around the world

reliability for certain processes

insufficient telecommunications bandwidth

software tools are not fixed but constantly evolving (ie. Netscape 3,4,4.7,4.75 etc.)

integrating digital and non-digital sales and production information

access limitations of dial-up, cable, ISDN, wireless

some vendors require certain software to show features on their pages, which is not common in the standard browser used by the majority

Difficulty in integrating e-Commerce infrastructure with current organizational IT systems

Technical Components of an E-commerce System

2008-10-20T13:57:00.008+08:00

The development of E-Commerce in the context of business developments.

Communication

1. Options:

· Telephone: dial-up or leased line

· ISDN: basic rate or primary rate

· Value Added Networks

· X.400: ISO standard secure messaging

· Networks: local area networks, wide area networks or intranets

· Internet: messaging, file transfer, Telnet, World Wide Web, XML

2. Standards:

· Standards are the means by which data is sent in an agreed format by eCommerce trading partners.

· In Electronic Data Interchange (EDI), standards pertain specifically to the syntax used to prepare messages for exchange. They enable, for example, one accounts system to understand an electronic version of an invoice sent out by another accounts system because the relevant pieces of data (e.g. invoice number) are always located in the same part of the message.

· In the case of EDI, these standards are generally nationally and

· The means which data is sent in an agreed format by E-commerce trading partners.

E.g.:

· EDI: syntax used to prepare message for exchange

· Gif and JPG: graphic standards

· World Wide Web:HTML, PERL, Javascript, Java, Software

3. The e-commerce software function includes:

· Data extraction from relevant application or data entry

· Data encoding to agreed standard format

· Data transmission to recipients.

· Data receipt by recipients.

· Data decoding for internal applications.

· Data insertion into relevant applications

Business-to-Business E-commerce

Key areas in B2B e-commerce:

Electronic Data Interchange (EDI)
Enhanced messaging: e-mail, voice-mail, fax
Teleconferencing
Integrated Systems: intranets/extranets, database publishing, workflow

Supply Chain E-commerce

Key areas in B2B e-commerce:

Stock control
Just-in-time delivery
Transportation
Warehouse management
Automatic Identification: Barcodes, Transponders

Business-to-Consumer E-commerce

B2C e-commerce application includes:

Database application
Kiosks
Internet store fronts
Downloadable software and software support
Internet auctions
Advertising on the Internet
Interactive TV

Impact of E-commerce on the Business

The impact of E-commerce to business includes:

Instantaneous means of data exchange
Exchange information efficiently and accurately
Convenience in time and geographic.
Reducing manual and paper-based operations
Re-thinking and simplifying the information flow
Using the information flow in new and dynamic ways.

Business Process Re-design

BPR focuses on radically changing the way internal processes are conducted in order to increase profitability and competitiveness.
E-commerce provides an opportunity to radically re-engineer business processes, even those that may have already been subject to such an activity.
Workflow is used to within the BPR project to help rationalise internal business procedures.
Flexible Working is an approach to organising the way people work together, from employees to top management and the way they interact with trading partners. It consist of:

Teleworking : Working a day or more from home and the rest at the office
Mobile working : Profession that requires the person to move from place to place and yet maintain contact with an office.
Virtual Teams : Teleworking extended to a group of people working on one task or project.

Computer Programming Methodology

2008-06-28T00:00:00.001+08:00

Variable, Control Structure and Calculation

Variable

Variable- a unit of storage that can be modified during programme execution, usually by assignment or read operations. A variable is generally denoted by an identifier or by name.

The name denotes a modifiable unit of storage.

Attributes of the variable:

The address in memory where the data is stored
The actual data stored which can change during the execution of the program
The name of the variable or identifier
Assignment statement: a fundamental statement of all programming languages (except declarative languages) that assigns a new value to a variable

Variable types :- Integer, Real, String, Character, Boolean, Date.

Identifier- a string of characters used to identify (or name) some element of a programme. The kind of elements that can be named depends on the programming language; it may be a variable, a data structure, a procedure, a statement, a higher-level unit, or the programme itself.

Name-a notation for indicating an entity in a programme or system.

Reserved word-a word that has a specific role in the context in which it occurs, and therefore cannot be used for other purposes.

Keyword-a symbol in a programming language that has a special meaning for the compiler or interpreter.

Compiler-a programme that translates high-level language into absolute code, or sometimes into assembly language

Interpreter-a language processor that analyses a line of code and then carries out the specified action, rather than producing a machine-code translation to be executed later.

Pseudocode- a form of representation used to provide an outline description of the specification for a software module.

Order of Precedence

The order in which a calculation is evaluated is very important since the end result can differ according to which operation is given precedence, i.e. performed before another.

Using the mathematical operations to construct programmes that calculate numerical values, e.g. ( ) brackets, / - division, * - multiplication, - - minus, + - plus

Use BODMAS formulation.

Range and types of complex programs:

A suit of programmes in a production control system in a large manufacturing company.

A simple database programme, which records the movement of stocks in a small video hire shop.

A programme to perform statistical analysis on experimental results.

A programme to display the contents of a database over the web and process orders and payments.

An interactive multimedia programme, which might be informational, e.g. encyclopaedia.

Need to know before writing a program,

What the user requires from the system (output)

What processes will be required to produce this output (process)

What data needs to be processed to create the output (input)

Software Lifecycle

Requirement analysis - an accurate and complete set of clients and user requirements is produced to determine the characteristics of an acceptable solution.

Design - describes how the solution will be built to satisfy the requirements specified at the previous stage.

Coding - produce the programmes that will make up the system based on the design.

Testing - when the programme is initially completed, all the separate modules are being tested. Then a full test of the programme according to the test plan will be conducted. Errors will be corrected and the test is repeated.

Implementation -Once the stages are completed, implementation of the system commences. User documentation or operating instructions may be required. After the installation of the system, it must be kept operational and maintained according to the needs of the users.

Importance of system Development

Documentation of each phrase is crucial regardless of the type of model chosen or devised for any application

Let other parties know how the progress of design and analysis works

Done in parallel with the development process

Computer Programming Methodology

2008-06-26T23:06:00.006+08:00

History of Programming

What is a Programming Language

Programming language is a set of words, symbols, and codes that enables a programmer to communicate a solution algorithm to a computer

It is needed to allow human begins and computers to talk to each other

A programmer can use a variety of programming languages to code a progr

A program development tool consists of user-friendly software products designed to assist both programmers and non-technical users with the creation of information system solutions.

Generation of Programming Langu

The first generation of language was the machine language. The machine language instruction uses a series of binary digits or a combination of numbers and letters that represents binary digits. Instructions and addresses were numerica

The second generation of language was the symbolic instructions or mnemonics and addresses. To convert the assembly language source programme into machine language, you use an assembler. Example, IBM, BAL and VAX macro.

The third generation language was the programmer concentration of structured programming and database management. It is a procedural language that requires the programme instruction to tell the computer what to accomplish and how to do it. Example, FORTRAN, ADA, COBOL, Pascal, C and BASIC.

The fourth generation (4GL) was the non-procedural type language. The programmer only specifies what the programme should accomplish without explaining how. Example. SQL, Postscript, and relational database orientation.

The fifth generation (5GL) was concerned on Artificial Intelligence and Fuzzy Logic.

Advantages and disadvantages of each generation of language

Readability of the language

Ease of writing the language

Reliability of the language

Cost of development

Syntax complexity

Language standards

Language Models

Imperative Languages

Functional Languages

Logic Programming

Object-oriented

Declarative

Scripting

Parallel

Object –Oriented Programming and Concepts

Introduction to Object Oriented Programming and concepts

What is OOP?

A revolutionary concept that changed the rules in computer programme development, object-oriented programming (OOP) is organised around "objects" rather than "actions," data rather than logic.

Object-orientation is a technique for system modeling.

Object oriented programming provides:

A system that can be constructed from a set of objects
New abilities to existing objects that can expand a system
Creating new objects can expand a system

Object:-is an entity able to save a state (information) and which offers a number of operations (behavior) to either examine or effect of this state.

Class:-represents a template for several objects and describes how these objects are structured internally. Objects of the same class have the same definition both for their operations and for their information structure.

An instance:-is an object created from a class. The class describes the structure of the instance, while the current state of the instance is defined by the operations performed on the instance.

Polymorphism means that the sender of a stimulus does not need to know the receiving instance’s class. The receiving instance can belong to an arbitrary.

Inheritance:- As objects do not exist by themselves but are instances of a CLASS, a class can inherit the features of another class and add its own modifications. (This could mean restrictions or additions to its functionality). Inheritance aids in the reuse of code. Classes can have 'Children' that is, one class can be created out of another class. The original or parent class is known as the SuperClass (or base class). The child class is known as the SubClass (or derived class).

Encapsulation (or information hiding):-is a principle, about hiding the details of the implementation of the interface. It is to reveal as little as possible about the inner workings of the Interface.

Operating System

2008-06-20T04:52:00.001+08:00

Chapter 1

Type of operating system

Batch System

Stacked job batch systems (mid 1950s – mid 1960s)

A batch system is one in which jobs are bundled together with the instructions necessary to allow them to be processed without intervention.

The basic physical layout of the memory of a batch job computer is shown below:

The monitor is system software that is responsible for interpreting and carrying out the instructions in the batch jobs. When the monitor starts a job, the entire computer is dedicated to the job, which then controls the computer until it finishes.

A sample of several batch jobs might look like this:

Often magnetic tapes and drums are used to store data and compiled programs, temporarily or permanent.

Advantages of batch systems

Move much of the work of the operator to the computer
Increased performance since it was possible for job to start as soon as the previous job finished

Disadvantages

Turn-around time can be large from user standpoint
More difficult to debug program

Due to lack of protection scheme, one batch job can affect pending jobs (read too many cards, etc)

A job could corrupt the monitor, thus affecting pending jobs

A job could enter an infinite loop

One of the major shortcomings of early batch systems is that there's no protection scheme to prevent one job from adversely affecting other jobs.

The solution to this brought a simple protection scheme, where certain memory (e.g. where the monitor resides) were made off-limits to user programs. This prevented user programs from corrupting the monitor.

To keep user programs from reading too many (or not enough) cards, the hardware is changed to allow the computer to operate in one of two modes: one for the monitor and one for the user programs. IO can only be performed in monitor mode, so that IO requests from the user programs are passed to the monitor. In this way, the monitor can keep a job from reading past it's on $EOJ card.

To prevent an infinite loop, a timer is added to the system and the $JOB card is modified so that a maximum execution time for the job is passed to the monitor. The computer will interrupt the job and return control to the monitor when this time is exceeded.

Spooling batch system (mid 1960s – late 1970s)

One difficulty with simple batch systems is that the computer still needs to read the the deck of cards before it can begin to execute the job. This means that the CPU is idle (or nearly so) during these relatively slow operations.

Since it is faster to read from a magnetic tape than from a deck of cards, it became common for computer centers to have one or more less powerful computers in addition to there main computer. The smaller computers were used to read decks of cards onto a tape, so that the tape would contain many batch jobs. This tape was then loaded on the main computer and the jobs on the tape were executed. The output from the jobs would be written to another tape which would then be removed and loaded on a less powerful computer to produce any hardcopy or other desired output.

It was a logical extension of the timer idea described above to have a timer that would only let jobs execute for a short time before interrupting them so that the monitor could start an IO operation. Since the IO operation could proceed while the CPU was crunching on a user program, little degradation in performance was noticed.

Since the computer can now perform IO in parallel with computation, it became possible to have the computer read a deck of cards to a tape, drum or disk and to write out to a tape printer while it was computing. This process is called SPOOLing: Simultaneous Peripheral Operation OnLine.

Spooling batch systems were the first and are the simplest of the multiprogramming systems.

One advantage of spooling batch systems was that the output from jobs was available as soon as the job completed, rather than only after all jobs in the current cycle were finished.

Multiprogramming systems (1960s – present)

As machines with more and more memory became available, it was possible to extend the idea of multiprogramming (or multiprocessing) as used in spooling batch systems to create systems that would load several jobs into memory at once and cycle through them in some order, working on each one for a specified period of time.

At this point the monitor is growing to the point where it begins to resemble a modern operating system. It is responsible for:

starting user jobs
spooling operations
IO for user jobs
switching between user jobs
ensuring proper protection while doing the above

As a simple, yet common example, consider a machine that can run two jobs at once. Further, suppose that one job is IO intensive and that the other is CPU intensive. One way for the monitor to allocate CPU time between these jobs would be to divide time equally between them. However, the CPU would be idle much of the time the IO bound process was executing.

A good solution in this case is to allow the CPU bound process (the background job) to execute until the IO bound process (the foreground job) needs some CPU time, at which point the monitor permits it to run. Presumably it will soon need to do some IO and the monitor can return the CPU to the background job.

Timesharing systems (1970s – present)

Back in the days of the "bare" computers without any operating system to speak of, the programmer had complete access to the machine. As hardware and software was developed to create monitors, simple and spooling batch systems and finally multi-programmed systems, the separation between the user and the computer became more and more pronounced.

Users, and programmers in particular, longed to be able to "get to the machine" without having to go through the batch process. In the 1970s and especially in the 1980s this became possible two different ways.

The first involved timesharing or timeslicing. The idea of multiprogramming was extended to allow for multiple terminals to be connected to the computer, with each in-use terminal being associated with one or more jobs on the computer. The operating system is responsible for switching between the jobs, now often called processes, in such a way that favored user interaction. If the context-switches occurred quickly enough, the user had the impression that he or she had direct access to the computer.

Interactive processes are given a higher priority so that when IO is requested (e.g. a key is pressed), the associated process is quickly given control of the CPU so that it can process it. This is usually done through the use of an interrupt that causes the computer to realize that an IO event has occurred.

Multitasking

Running two or more programs concurrently is called multitasking.

Allows threads in different processes to execute concurrently. Additionally, threads in the same process can run concurrently in different processors.

Multitasking is accomplished by context switching. With context switching, a thread executes until it is interrupted by the OS or must wait for resources. When a thread is interrupted, the system saves context of the thread (its register settings etc), loads the context of another thread and executes the new thread.

Real-time

A real-time computer is one that execute programs that are guaranteed to have an upper bound on tasks that they carry out. Usually it is desired that the upper bound be very small. Examples included guided missile systems and medical monitoring equipment. The operating system on real-time computers is severely constrained by the timing requirements.

Dedicated computers are special purpose computers that are used to perform only one or more tasks. Often these are real-time computers and include applications such as the guided missile mentioned above and the computer in modern cars that controls the fuel injection system.

Business Organisation

2008-06-19T04:03:00.010+08:00

WEEK 2

TOPIC : LEGAL STRUCTURE OF AN ORGANISATION

1.0 Introduction

· One of the most important decisions that has to be made by a manager is the choice of form of organisation.

· The choice depends on number of factors, like nature of business, size of business and the demand for the product.

· Some of the forms of business organisation ownership are listed below.

Classification of business organisation

2.0 Types of business organisation

· The business organisation found in this country can be divided into two sector or ownership.

· Within a mixed economy there are numerous organisations that have been created to satisfy the human demands for goods and services.

· There are differences between the public and private ownership.

· Under the private sector firms are normally owned by individuals or groups of individuals. Often these individuals work for, rely on, the firm for their living.

2.1 Types of Private ownership

2.1.1 Sole Trader

Sole trader is where a single person brings his own capitals, put in his own labour and enjoys the entire profit.

It is an organisation where the owner is only one, but may have many helpers.

2.1.1 (a) Characteristics of the sole trader

Characteristics

1 Provide the capital to run the business (though they may borrow from banks and

relative)

2. Work in the business by them. Though they may have other paid assistance (helpers).

3 .Make their own decision-though it would be wise to seek advice from numerous

organisations set up to help small business.

4. Bears an unlimited liability.

5. Sole trader are particularly successful in those undertakings for which neither a large

. capital nor great technical knowledge is required

Example : painters, mechanics, sundry shop owners and etc.

2.1.1 (b) Advantages and disadvantages of sole trader

ADVANTAGES

1. This simple form of organisation structure avoids the time consuming red tape that bedevils the larger organisations.

2. Direct supervision leads to efficient use of resources.

3. Good employer-employee relationship can be maintained.

4. They are able to provide a personalised service since the organisation is small enough to adapt to the individuals needs of the customers.

5. There are flexible i.e. able to change trading policies to suit the changing environ

6. There is less wastage of materials and manpower.

DISADVANTAGES

1. The limited amount of capital they can raise is an impediment to the growth of the business.

2. They have unlimited liability. They are responsible for the debts of the firm to the extent of their personal property.

3. The continuity of the business in uncertain.

4. They may not have an adequate knowledge of all aspects of the business and this may prove to be a handicap as the organisation grows more complex.

5. They have long hours of work and if they are not present to make decisions, the business slows down

6. Since the capital is provided by the proprietor himself, the size of the business is limited and expansion is not easy.

2.1.2 Partnership

· A partnership is an association of two or more persons who are co-owners of the business. It is also a business that consist minimum of two to 20 partners.

· This business is based on two or individuals agree to do business and share the profit.

· Each partner is an agent of the other partner and the partnership.

· There are few types of partners.

Active partners

They are the partners who contribute capital and also take any active part in the running of the business.

Sleeping partners

These partners invest their money in business but do not take an active part in the management.

Nominal partners

They are the people who allow their names to be used but take no active part in the management nor do they share in the profit.

· When a partnership is formed, it is wise to draw up a Partnership Agreement which sets out the terms and conditions.

2.1.2 (a) Partnership Agreement

The actual contents of the agreement may vary but basically they should cover such as:-

Partnership name and business address.

Names and address of the partners.
Duration of Partnership.
Nature of business.
Capital contributions of partners.
Duties of partners
Provisions for salaries or drawings.
Distribution of profits or losses.
Methods of resolving a conflict.
Procedures for dissolution of partnership.

2 1.3 (b) Characteristics

No. of members	2 to 20
Liability	Unlimited for all members
Powers	Each partner takes an active part in the business.
Profits	Shared among the partners according to the Partnership Agreement or Partnership Act.
Legal requirement	- Display the licence in the premise. - Renew the licence every year. - Partnership Agreement must be drawn.
Publishing of Annual Account	Not compulsory

2.1.3 (c) Advantages and disadvantages of Partnership

ADVANTAGES

1. Partners can share the worry of the business as well as the work load. The excessive hours and over work of a sole trader are no longer necessary.

2. Availability of more capital by pooling together resources from more than one person.

3. Good employer-employee relationship can be maintained.

4. A number of partnerships are more likely to produce new ideas on how to run the business and how to react to trading conditions than a sole trader.

5. A wider clientele will be available as each partner will have different contacts.

DISADVANTAGES

1. The limited amount of capital they can raise is an impediment to the growth of the business.

2. They have unlimited liability (they are responsible for the debts of the firm to the extent of their personal property).

3. The continuity of the business is uncertain. This can be due to disagreement among partners.

4. They may not have adequate knowledge of all aspects of the business and this may prove to be handicap as the organisation grows more complex

5. Slow decision-making. There is excessive discussion whereby decision may be reached only after a long discussion.

2.1.4 Private Limited Company

· It is also called as a Joint Stock Limited.

· A joint stock company is an artificial entity created by law, having a common seal and perpetual succession.

· There are two types of joint stock companies:

a) Private Joint-Stock Companies (Private Limited Companies).

b) Public Joint-Stock Companies (Public Limited Companies).

· These companies must be registered with the Registrar of Companies (ROC). After this, the Registrar will issue a ‘Certificate of Incorporation’.

2.1.3 (a) Characteristics of the Private Limited Companies

Number of members	2 to 50
Liability	Limited for all members
Power and control	Controlled by the BOD (Board of Directors) who are elected by shareholders.
Share transfer	Transfer of shares is restricted.
Profit	Divided among shareholders according to the type of shares held.
Legal requirements	Articles and Memorandum of Association must be registered with the ROC and a Certificate of Incorporation obtained before trading can begin.
Publication of Annual accounts	Not compulsory but must submit the annual account which has been certified and approved by the auditors to ROC.
Capital	Contributed by shareholders.

2.1.3 (b) Advantages and Disadvantages of Private Limited Companies

Advantages

The liabilities of the members are limited.
Since it has legal status and therefore has perpetual succession i.e. they can continue despite the death, retirement or bankruptcy of the owners.
It experiences larger economies of scale.
Management is divorced from ownership. Therefore, persons with organising ability but without financial resources can occupy positions of control.
The uncertainties and hazards of the business are spread over a large number of people.

6. Since there is restriction as to the transferability of shares, control of the company is restricted to the few shareholders and secure from take-over bids by other companies

Disadvantages

The administration costs of a company are higher that those of sole traders or partnership.
The formation expenses of a company are considerable.
The decision-making process is slow because of different levels of management and large size organisations.
It is difficult for companies to maintain close contacts with their customers and employees
Companies are subjected to many statutory rules and regulations.
There is no direct control for investors who are the shareholders. They have no direct control over the affairs of the company. The directors act as their trustees.

2.1.4 Public Limited Company

It is also called as Public Joint Stock.
The Registrar will issue a ‘Certificate of Incorporation’.
Before individual can start operating a Public Limited Company, they need to comply with other requirements and obtain a ‘Trading Certificate’.
Also, their company shares must be issued to the public and a sufficient volume must have been subscribed, to give the company an adequate capital.

2.1.5 (a) Characteristics

Number of members	Minimum of 2, no upper limit.
Liability	Limited for all members
Power and control	Controlled by the BOD (Board of Directors) who are elected by shareholders.
Share transfer	Shares are freely transferable.
Profit	Divided among shareholders according to the type of shares held.
Legal requirements	Articles and Memorandum of Association must be registered with the ROC and a Certificate of Incorporation and Trading Certificate obtained before trading can begin.
Publication of Annual accounts	Compulsory
Capital	May appeal to the public. Minimum authorised share capital is 50, 000.

2.1.6 (b) Advantages and Disadvantages of Public Limited Company

Advantages

1. The liabilities of the members are limited.

2 .Since it has legal status and therefore has perpetual succession i.e. they can continue despite the death, retirement or bankruptcy of the owners.

3. It experiences larger economies of scale.

4. Management is divorced from ownership. Therefore, persons with organising ability but without financial resources can occupy positions of control.

5. The uncertainties and hazards of the business are spread over a large number of people. .

6. The shares of public companies are easily marketable and attract a large number of investors.

7. Public companies can help the country economy to grow.

Disadvantages

1. The administration costs of a company are higher than those of sole traders or partnerships.

2. The formation expenses of a company are considerable

3. The decision-making process is slow because of different levels of management and large size organisations.

4. It is difficult for companies to maintain close contacts with their customers and employees.

5. Companies are subjected to many statutory rules and regulations

6. There is no direct control for investors who are the shareholders. They have no direct control over the affairs of the company. The directors act as their trustees.

7. Since there is no restriction as to the transferability of shares, control of the company is not secure of the take-over bids by other companies.

2.1.4 Franchise

It is an arrangement where one party (the franchiser) sells the right to another party (the franchisee) to market its product or service.

Kentucky Fried Chicken and Dunkin' Donuts were among the first chains to start selling franchises. But it was Ray Kroc, founder of McDonald's Corp., who saw in franchising the opportunity to build a national brand and in the 1950s traveled the United States selling franchise licenses for US$950.

2.1.5 (a) Characteristics

1.	Allow someone else to operate the business idea as their own business.
2.	Obtain the necessary capital yourself.
3.	Training and other assistance will be given by the franchisor.
4.	Advertisement and promotion and other marketing activities are centralised.

2.1.5 (b) Advantages and disadvantages of Franchise

Nos.	Advantages	Disadvantages
1.	Require less business experience.	Must be prepared to work hard to ensure profit.
2.	Training and other support are given.	A big amount of investment to start this business is required.
3.	Able to emphasise on business rather than other activities.	One mistake can cause the good name to be spoiled.
4.	Customers are more comfortable.
5.	Higher Statistical Success Rate of franchises over sole proprietorships

2.1.7 Co-operative Societies

· The object of the first co-operative was to provide cheap, unadulterated food for its members and to return any profit it made to them.

· It must be registered with the Registrar of Society.

· They do not fall into the conventional division of public or private sectors.

· They are not a nationalised (government sector) and they do not operate primarily for profit.

· I was realised that large firms has advantages of buying in bulk which were denied to the individual purchaser, but that these advantages were largely lost to the customer because they provided the profits for the owners.

· As such, cooperative is aimed to accrue the advantages of sales but to pass these to their members rather than to the owners of the firm.

· A cooperative society is a form of organisation wherein persons voluntarily join together for the promotion of their own economic interests.

· A person becomes a member of a co-operative by buying a share. This provides part of the society’s capital and entitles the holder to one vote at the society’s annual meeting.

· Cooperatives function both in the buying and retailing of goods (consumer cooperatives) and in the production and sales of goods (producer cooperatives).

· The principles laid down by the Pioneers still form the basis of the co-operative movement today. They include:

a. Open membership

b. Democratic control through a system of one member, one vote, regardless of how many shares are held

c. Distribution of any surpluses in proportion to purchases – the “dividend”

d. Promotion of education

e. Religious and political neutrality

· Open membership, true democratic management by the “one-man-one-vote principle, patronage dividends and cash trading o encourage thrift are some of the important features and advantages of a cooperative society over the joint-stock company.

· Inadequate capital, inefficiency management, lack of unity among members and lopsided development are its main defects.

2.2 Public Sector

· Public sector is the part of economy which is owned by the state or government.

· There are various types of public ownership.

Types of organisation	Characteristics
Nationalised Industries	· These industries are established by the parliament and controlled by the Parliament in the following ways – submission of annual accounts for security by the Public Accounts Committee or Select Committees, an annual Parliamentary debates which all relevant matters are discussed, and the appointment of a Minister to control the overall policy. · Some of these industries were actually private limited companies taken over by the state. · Any losses are made good from taxes and hence, the taxpayers are actually the risk-takers.
Public Corporation	· Slightly different between corporation and the nationalised industries. · A Public Corporation has a ‘charter’ from Parliament, which gives it a certain freedom of action for a prescribed period. · However, it is still State-owned and the taxpayer remains the risk-taker.
Local Government	· It is inappropriate for central government to provide such services as the local authorities or municipalities have been better knowledge of local conditions and opinions. · They are responsible for providing or managing the provision of various social services such as medical and educational services, social security and etc.
Central Government	Most major departments have a government Minister in charge of policy and in control of operations.

· There are various reasons for placing business organisation under the public ownership.

Nos.	Reasons	Explanation
1.	Natural rights	There are certain items that ought to belong collectively to the entire nation. For example land, river and lakes.
2.	Security	National security may have to protected because private enterprise is inappropriate to provide the services performed by the police, armed forces, fire brigades and post office.
3.	Fundamental importance	Some industries are of basic importance to the whole economy especially electricity and water.
4.	Social necessity	Many goods and services are part of the social needs of an advanced society. Example, education, public health controls, drainage and sewerage system.
5.	Natural monopolies	This is to take a monopoly of private ownership because it is impractical to allow competition in production and supply of certain goods and services. Example, electricity, water, and railway transport.
6.	Heavy capital cost	This is to save an ailing industry and project jobs. Example KLIA, PLUS and so on.
7.	Bad labour relations	Disputes over wages and working conditions can destroy the production certain goods and services that are of fundamental importance to the people.

· Like the private ownership, public ownership also has its advantages and disadvantages.

Nos.	ADVANTAGES	DISADVANTAGES
1.	Government has the resources to fund a vast industry, even if it is uneconomic.	Can over-cautious due to the fact that they are answerable to the public.
2.	Will ensure provision of essential services.	Bosses are politicians who may not have the necessary business expertise.
3.	Reduces possible duplication of equipment.	State monopoly can lead to inefficiency profit motive.
4.	Enables large sections of the economy to be planned towards a single strategy.	Losses have to be met by taxpayers.

Business Organisation

2008-06-11T22:39:00.000+08:00

week 1

Organisation

A. Learning Objectives:

The objectives of this week topic are to expose students to

What is organization and how it operates within the business environment.
How its operation differs from one place to another base on the types of economy.
Roles of government in helping business.

B. Learning Outcomes:

On successful completion of this topic students will be able to:

a. Recognize the general characteristics and purposes of an organization.

b. Illustrate how environment and business organization are interrelated.

c. Show the different economy that are available and their advantages and limitations.

d. Discover how the environment can affect the business organization.

e. Explain with examples how government can assist business organization.

C. Topic

1.0 Introduction

1.1 Definition

Business is a trading unit and it is a major economic activity.

“Production of goods and services to meet peoples wants”(Gabriel,V.1989)

It is an activity of buying and selling of product or services between customer and producer in order to satisfy each others purposes.

It is an exchange activity between two or more individuals.

There are two types of business activity – domestic business and international business.

Business activity does not only help meet humans’ basic needs but also contributes to a higher standard of living.

This exchange activity is normally done in an organisation.

Organisation is a collection of groups joined in a common mission.

1.2 Purpose of organisation

Organisation operates for various reasons. Some of the reasons that had been gathered are as the followings.

i) To make a profit;

ii) To enjoy social activities with like-minded people;

iii) To provide a service to the public or to raise money for the under-privileged;

iv) To survive and to grow in the business industry;

v) To give more job opportunities; and

vi) To improve the standard of living.

1.3 Types of business industry

Industries can be broadly categorized under three headings:

Primary. These are industries concerned with the extraction of raw materials and include agriculture, forestry, fishing, and mining.
Secondary. These industries are in any way concerned with the processing and manufacturing of products. They include such industries as iron and steel, motor vehicles and food processing.
Tertiary. The final group does not produce goods but supply and sell services. For this reason, they are termed as service industries. In this category are banking, education, tourism, and the distributive traders.

2.0 Types of economy

Business organisation operates differently. This is because it depends on the types of economy the country is practising.

There are three different type of economy available – planned economy, Market Free and Mixed Economy.

The above classifications appeared due to a question of who allocates the resources.

2.1 Planned economy

The principle behind the planned economy is that the government will provide allocate the resources.

Individuals do not own companies; instead the government runs all the business and then sells the goods to the population.

Cuba is an example of a Communist State or a Planned economy.

Advantage of operating in this type of economy is that the system can be shaped in such a way as to reflect the social and political wishes of a group of people.

Disadvantage of operating in this king of economy is that, it may stifle individual capabilities.

2.2 Market Free economy

The markets naturally decide the price. The price will be set using the demand and supply curve.
Government normally do not get themselves involved.
United States of America is an example of a country that practices this type of economy.
Advantage of operating in this type of economy is that the production surely will be reflecting the wishes of the consumer.
Disadvantage of this economy is that the community have to pay for resources used.

2.3 Mixed economy

· A mixed economy has a mixture of government supported or owned businesses and privately owned businesses.

· The balance between who will provide services is often determined by government policy.

· Advantage of operating in this type of economy is that a healthy competition can be encouraged.

· Disadvantage is that businesses are unable to operate freely.

3.0 Relationship between business and the economy

4.0 The role of the government in business

5.0 Provides basic framework for private organization.

6.0 Helps ruthless exploitation of child and female labour.

7.0 Good working environment for business.

8.0 Pass laws and enforcing regulations that can protect society and business.

9.0 Tax incentives used to entice industries to locate in certain areas to solve unemployment problems.

10.0 Give education and training to provide sufficient skills.

11.0 Subsidise medical care and cheap public housing through a system of taxes.

12.0 Do a proper economy planning to ensure that manpower requirements in all sectors of the economy are met.

13.0 The business environment

Business does not operate in a vacuum.
For an effective business, knowing the environment and changing accordingly the business activities helps business organisation survive longer.
The business environment can be classified into macro and micro environment.

13.1 Macro environment

· Legal and political

It is created by the government and powerful decision makers who are able to create laws, regulations and codes, as well as imposing taxes on organizations.

· Economic

Factors effecting the financial functioning of the organization such as the potential for growth or for retrenchment in the economy at large in relation to the market for the organisation’s products, or the value of money as it impacts on reward systems.

· Social

Factors affecting the supply of labour, such a demographic, ranges in terms of the age profile of the working population, numbers of people in the job market, and changing cultural norms of the behaviour and attitudes in society at large which influence people’s expectations and behaviour at work.

· Technology

It involves factors affecting the processes of production, such as changes in computer technology and communication, and the implications of new manufacturing processes.

13.1 Micro environment

· Competitors

It is the most important force that an organization confronts in its task environment.

· Customers

Changes in the number and types of customers or changes in customers taste and needs also can result in an opportunities or threats for a business.

· Distributors

If distributors are so large and powerful they can control customers access to a particular organisation’s goods and services, they can threaten the organization by demanding that it reduces the price of its goods or services.

· Suppliers.

They are very much important because the quality of their supply, the price and so on will affect the output that the organization produces.

14.0 References

1. Gabriel, V. 1989. Management. 2^nd Edition. Longman: Singapore.

2. NCC manual. Business Organisation.