Business Studies January 1, 2012

Chapter 10
Computers in Business
Meaning E-Commerce is the buying and selling of products and services by businesses and consumers through an electronic medium, without using any paper documents. E-commerce is widely considered the buying and selling of products over the internet, but any transaction that is completed solely through electronic measures can be considered e-commerce. Opportunities in E-Commerce a) B2C stands for Business to Consumer as the name suggests, it is the model taking businesses and consumers interaction. Online business sells to individuals. The basic concept of this model is to sell the product online to the consumers. b) B2c is the indirect trade between the company and consumers. It provides direct selling through online. For example: if you want to sell goods and services to customer so that anybody can purchase any products directly from suppliers website. c) B2B stands for Business to Business. It consists of largest form of Ecommerce. This model defines that Buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler. Dell deals computers and other associated accessories online but it is does not make up all those products. So, in govern to deal those products, first step is to purchases them from unlike businesses i.e. the producers of those products. Benefits of E-Commerce a) b) c) d) e) f) g) h) i) j) k) l) m) n) Improvement of productivity Less Clerical work Secure and safe work Reduction in manpower requirement Fastest processing of transactions Business is on-line and near real time Lower cost Better marketing Gaining new customers Affordability Reduced Time Reduced inventories Better quality Brand image

Business Studies January 1, 2012 Resources Needed for Implementation of E-Commerce a) b) c) d) e) Hardware Software Requirements Network Service Infrastructure Trained Workforce

Accounting Packages a) General Purpose Accounting Packages: These type of softwares can be used by any industry and is the most widely used package. They are standard packages that adhere to the norms that are set by the government. The most common features available are: Creation of ledgers Preparing trial balance Preparing balance sheet Printing of vouchers b) Special Purpose Accounting Package: These are accounting packages that are developed by the company exclusively for their use. They use the accounting packages to maintain records such as payroll accounting and inventory accounting. They might have their own parameters for evaluating items. To build such packages, organizations will have a separate wing to develop or have it outsourced to a software development company. Role of Accountant in IT Field Accountant is a person who understands the implications of a particular transaction. The role of an accountant can be elaborated as follows: a) Preparing, analyzing and verifying various financial documents. b) Assists in the development of application packages that not only helps corporate houses but also small and medium scale businesses. c) Tests effectiveness of accounting package d) Applying analytical review procedures, transactions or balance details may be reviewed and reports printed. e) Provide for backup of certain files that are not retained for a longer duration DBMS (Database Management System) A database is an organized collection of data for one or more purposes, usually in digital form. The data are typically organized to model relevant aspects of reality (for example, the availability of rooms in hotels), in a way that supports processes requiring this information (for example, finding a hotel with vacancies). This definition is very general, and is independent of the technology used. A database management system (DBMS) is a software package with computer programs that control the creation, maintenance, and use of a database. The different types of DBMS software available are MS-Access, Sybase, Oracle, MS-SQL etc

Business Studies January 1, 2012 Previous Year Questions on this Chapter SECTION A 1. 2. 3. 4. 5. 6. Give the meaning of E-commerce. (Mar-08, 11, Jun-09) List any two resources needed for implementation of e-commerce. (Mar-07) What is meant by accounting package? (Mar-10, Jun-10) What is the role of accountants in IT field? (Jun-11) What is database management? (Jun-09,10) Expand B2B. (Mar-11)

SECTION B 1. Define e-commerce. (Jun-11) 2. State any four contents of accounting package. (Jun-06) SECTION C 1. State the resources required for successful implementation of e-commerce. (Jun-08, 10, 11)