Emerging Technologies for Business Processes MICROSOFT POWERPOINT

UNIT 3 OUTLINE  It is a presentation program available both

3.1 Office Application Tools Windows and Mac operating systems. It is a
3.2 Computing Technologies presentation-based program that uses
graphics, videos, etc. to make a presentation
3.3 Cloud Computing
more interactive and interesting.
3.4 Mobile Computing  BASIC FUNCTIONS:
3.5 Green Computing a. Home
3.6 Grid Computing b. Insert
3.7 Internet of Things (IOT) c.Design
3.9 Machine Learning d. Transition
3.8 Artificial Intelligence e. Animations
f. Slide show
3.10 Business Intelligence
g. Review
h.View
OFFICE APPLICATION TOOLS i. Help
 Office Application tools are among the most MICROSOFT OneNote
commonly used application tools in a  It is a free-form information gathering
business organization. Business program that allows a user to collaborate
organizations that use these tools generally with other OneNote users. The functions of
this computer program include creating
spend less and more versatile. Hence, these
notes in both typewritten and handwritten
tools are utilized by both small and large forms, clipping, and adding audio
organization and offices. commentaries.
MICROSOFT OFFICE MICROSOFT OUTLOOK
 Microsoft Office is a family of powerful  Many business organizations nowadays use
office applications that support various Microsoft Outlook as their default webmail
business processes. Office 365 offers major service. This computer program is included
features that were previously not available in in a Microsoft Office suite package. It
the Microsoft Office product line. allows users to share information in the form
MICROSOFT WORD of folders, forms, and so on.
 It is a processing program that is designated MICROSOFT PUBLISHER
for both Windows and Mac operating  Designed for entry-level desktop publishing.
systems. It allows users to perform many It focuses on page layout rather than text
tasks. composition. It is widely used for designing
 BASIC FUNCTIONS: banners, invitations, advertisements, and etc.
a. File MICROSOFT ACCESS
b. Home  This software is used to create a database
c. Insert whose main purpose is to organize, store,
d. Design maintain, and manage day and information
e. Layout for reporting and analysis. It helps store,
f. References analyze and manage large amounts of
g. Mailing information effectively.
h. Review  BENEFITS OF MICROSOFT ACCESS:
i. View a. Reduce redundancy and inconsistencies
j. Help b. Increase Productivity
MICROSOFT EXCEL c. Secure databases
 It is a spreadsheet program that includes d. Make better decisions
features such as the calculation, macro- OFFICE MOBILE
programming, and graphic tools.  Mobile technologies are popular in today's
 FUNCTIONS of MICROSOFT EXCEL: generation. A few years ago, Microsoft
a. Formulas Office can only be accessed using personal
b. Data computers. With the advent of technologies,
it can now be accessed using mobile phones
through a software called an application.
 Various operating systems control the b. Social Networking SaaS
overall operation of the mobile app such as  These are applications that are used
Android and iOS. by business organizations,
individuals, or groups of
COMPUTING TECHNOLOGIES individuals for the purpose of
networking and sharing of
COMPUTING information, videos, photos,
 is defined as the process of utilizing graphics, and others. Examples:
computer technology to complete a certain Facebook ,Twitter
task.
COMPUTER TECHNOLOGY PLATFORM as a SERVICE (PaaS)
 is associated with the activities of designing,  It refers to the ability to deploy applications
constructing, and programming computers. to the cloud infrastructure. This deployment
It is directly correlated with IT and could be customer-related and involve
encompasses different software programs acquired applications that are designed
and devices. through programming language or software
 Examples of Computer Technologies: tools that are supported by the provider.
Voice and Video Technology  Types of PaaS:
Under Voice and Video Technology we a. Social Application Platform
have:  This refers to a platform that provides third
a. Teleconferencing parties with full access and gives the
b. Computerized Teleconferencing opportunity to access and write
c. Videoconferencing functionalities that are available for all
users Example: Facebook
CLOUD COMPUTING b. Business Application Platform
 CLOUD refers to the Internet. In business o This refers to higher technical
perspective, CLOUD complexities that lead to
COMPUTING allows business transaction- based business
organizations data and information to be applications. This involves a
stored and accessed virtually. database, workflow, user
CLOUD COMPUTING AND THE INTERNET interface, and user integration. It
 With the help of the Internet, cloud also allows designers,
computing was introduced. CLOUD developers, and system analysts
COMPUTING refers to the use of to design and develop complex
technology that uses the Internet and remote business applications that could
servers to maintain data and applications. be customized later on. Example:
CLOUD COMPUTING SERVICE MODELS WOLF Frameworks
c. Computing Platform
SOFTWARE as a SERVICE (SaaS) o This refers to a service that
 It refers to the ability to use applications provides processors, storage, and
running on the cloud infrastructure made bandwidth. Therefore, if a user is
available by a service provider. These a developer, then he/ she can
applications can be accessed from different upload a traditional software
client devices through a client interface (e.g., stack, thereby allowing him/her
web browser and web-based email). to run an application using
a.Business Utility SaaS his/her own computing
 These are applications that are used infrastructure. Example: Amazon
by business organizations, web services
individuals, or groups of d. Web Application Platform
individuals to manage and collect o This refers to an application that
data, streamline collaborative provides API and other
processes, and provide organized functionalities to developers to
analysis. Examples: Customer build web applications that
Relationship Management (CRM), leverage their mapping or
Human Resources and Accounting calendar. Example: Google Apps
 information, and even devices are equally
INFRASTRUCTURE as a SERVICE (laaS) protected.
 This refers to the ability to provide  RISK OF MOBILE COMPUTING
processing, networks, storage, and other 1. Connectivity Issues
primary resources related to computing. 2. Security Issues and Concerns
This type of service model offers  ADVANTAGES OF MOBILE
customers the ability to deploy and run COMPUTING
essential or arbitrary software. It may 1. Connectivity
include operating systems and 2. Personalization
applications. In addition, this service 3. Social Engagement
model puts a business organization's IT 4. Marketing
operations into the hands and power of
a third party. Example: High- GREEN COMPUTING
performance computing  Business organizations focus not only on
social responsibility but also their greater
CLOUD DEPLOYMENT MODEL responsibility to the environment. An
approach that can be applied by business
Private Cloud organizations to their computer and
 refers to the cloud infrastructure that is used communication systems is to reduce, reuse,
and operated by only one organization. and recycle to save the environment. This is
Community Cloud referred to as GREEN COMPUTING.
 refers to the cloud infrastructure that is  It is popularly known as GREEN IT. It is
shared by many business organization and considered the environmentally responsible
support certain communities that share the method used by business organizations to
same sentiment and concerns reduce, reuse, recycle, as well as dispose of
Public Cloud technological resources
 refers to the cloud infrastructure that is STAGES OF GREEN COMPUTING
made available to alarge industry group or 1. DESIGN
to the general public.  This stage considers not only the utility of
Hybrid Cloud the devices but also their longevity and
 refers to the cloud infrastructure that is future disposal.
combined with two or more clouds. 2. MANUFACTURE
 In green manufacturing, waste materials
MOBILE COMPUTING during the production stage of computers
 is a term used to describe various devices and other systems are minimized to mitigate
that allows people to access, retrieve, the harmful environmental effects of
delete, and view data or information manufacturing activities.
wherever they are in the world. It allows 3. USE
users to transfer data, videos, photos, and  Green use refers to the eco-friendly and
audio over a specific network through a cost-efficient utilization of computers or
mobile device. It also allows users to other peripheral devices.
transmit data from one remote location to 4. DISPOSAL
another.  Green disposal simply equates to the reuse,
 BENEFITS of MOBILE COMPUTING recycle, or appropriate discarding of used
 Increase Productivity computing devices or unwanted electronic
 Improvement in Flexibility equipment.
 Better Cost Control GREEN COMPUTING APPROACHES THAN
 Better Communication CAN BENEFIT BUSINESSES
MOBILE COMPUTING SECURITY 1. Virtualization - Many IT experts believe that for
 Mobile Computing has also designed a every single penny invested in business servers,
mechanism for it's security. Increased another penny is needed to keep them running and
mobile Computing security means cooled.
businesses can provide employees with 2. Use of Multifunction Devices - Many business
mobile devices or technology and be organizations nowadays allow their employees to
confident that business network, data,m share multifunction devices.
3. Use of Cloud Applications - Business E. Engineering Services
organizations are encouraged to use energy-efficient F. Collaborative Games
notebook or iPads instead of traditional desktop
computers to save electricity for their operations. INTERNET OF THINGS (IOT)
4. Disposal and Replacement of Old Devices or  People are surrounded by impressive
Equipment - Business organization should also technologies that are purposely designed to
follow the rules set forth by the government in terms change their lives, business and reality.
of the disposal of e-waste and consult with IT These impressive technologies are called
professionals who could guide the proper Internet Of Things (IOT).
replacement of old devices and procurement of new A. COMMON IOT APPLICATIONS
computing equipment most suitable for their needs.  Smart home devices
5. Introduction to Telecommunicating - Green  Wearable technology
computing encourages business organizations to let  Iot healthcare devices
their employees work at home to increase flexibility  Connected cars
and productivity.  Smart transportation
B. IOT IN BUSINESS
GRID COMPUTING  Equipment
 has emerged as the next useful stage in  Shelf and warehouse management
distributed computing. The main objective
 Warehouse automation and robotics
of grid computing, particularly a
 Smart store
computational grid, is to make all computing
resources available all day every day.  Data analytics
IMPORTANCE OF GRID COMPUTING IOT CAN CHANGE THE FINANCIAL
SERVICES INDUSTRY
 GRID COMPUTING is emeging because
modern businesses have viable technologies  The financial services industry inside and
and IT resources that can be used and outside the Philippines are putting efforts in
implemented to gain more profit and investing more on its IoT solutions. The IoT
productivity. Simply put, the concept allows in the financial sector transforms businesses
the problem to be brought to the computer into the modern world of physical and
(or grid), and a solution is obtained based on digital environments. It provides never
the identified problem. ending opportunities to the financial sector
BENEFITS OF GRID COMPUTING to increase efficiency and productivity.
 It allows detached departments to be part of
ARTIFICIAL INTELLIGENCE
a virtual organization that allows the sharing
of data and resources.  Popularly known as AI, has been a great
contribution in the world. AI is the ability of
 It improves business productivity and
a certain machine to use algorithms to
collaboration within virtual organizations.
interpret, learn, and use data to make
 It supports the creation of robust, flexible,
decisions. It also refers to a machine's
and resilient operational business
capability to analyze enormous amounts of
infrastructures
information at a time.
 It provides immediate access to enormous
 First AI Invention by Warren McCulloch
computing and data resources.
and Walter Pitts in 1943
 It leverages existing capital expenditures SOME APPLICATIONS OF AI
(CAPEX) and operational expenditures
(OPEX), which would help ensure the ROBOTICS - Robots are among the common
optimal utilization and costs of computing technologies being used to help or replace human
resources and capabilities. workers to increase efficiency, productivity, and
 It keeps businesses from incurring expensive quality.
operating costs or excess costs. SPEECH RECOGNITION- The process of
GRID COMPUTING IN MAJOR BUSINESS converting spoken language into text
AREAS CYBER PROTECTION AGAINST THREATS -
A. Higher Education Cybersecurity is the most important AI tool for online
B. Financial Services transaction. It is used in bank systems among others
C. Life Sciences to ensure secure transaction online.
D. Government Services
MACHINE LEARNING UNIT 4 E-Business, E-Commerce, and M-
 Having smart assistant for your business. It Commerce
is a type of technology that enables
computers to learn from data and improve E-Business
their performance at tasks without being  refers to any online-run business. It is also
explicitly programmed. considered as a technique used by business
 In computer science, it is the field that organizations to:
focuses on program development that allows a. Improve business strategy
computers to learn automatically without b. Be more productive
human assistance and intervention. Current c. Profitable through the use of
machine learning devices are equipped with Information Technology
the capability to make models for businesses
Internet (International Network)
according to their organizations input data
and goal.  is a large network used by business
organizations to establish e-business and e-
BUSINESS INTELLIGENCE commerce websites.
 According to The Data Warehouse Institute  Computers connect to each other through the
(2022), this refers to the processes, internet.
technologies, and tools required to convert
 It provides business organizations
data into information, information into
knowledge, and knowledge into plans that opportunities to build relationships with
derive profitable business actions. It their customers and suppliers to help
encompasses data warehousing, business improve services and customer retention.
analytics, and knowledge management  Customers and suppliers are encouraged to
EXAMPLES OF BUSINESS INTELLIGENCE use e-business services as a new and
1. Analytics- refers to a program that builds
convenient channel to do business
quantitative processes for organizations or
businesses to arrive at the most favorable transactions online
decisions and perform business knowledge World Wide Web (WWW)
discovery.  provides unrestricted access to and
2. Enterprise Reporting- refers to a program publishing of information over the internet
that builds infrastructure specifically for using web browsers.
strategic reporting to support the strategic Computer Networks
management of a business.
3. Measurement- refers to a program that  refers to the connection between computers
creates performance metrics and performs to share information and resources.
benchmarking that aid business leaders in Types of Computer Networks:
determining how to progress toward certain a. Personal Area Network (PAN)
business goals.  refers to a computer network that is used to
4. Collaboration Platform- program that allow communication between devices close
initiates and obtains inputs from various
areas to work and collaborate with each to each other. The allowable distance for
other by data sharing or electronic data these devices to connect ranges from 20 to
interchange. 30 feet or approximately six to nine meters
5. Knowledge Management- refers to a away from each other.
program that makes a business data-driven. b. Local Area Network (LAN)
It uses strategies and practices identify,  this one is the most commonly used
create, build, distribute, and adopt true
computer networks that cover a small area
knowledge.
such as a house, room, or building.
c. Campus Area Network (CAN)
 this type of computer network is specifically
used for academic institutions where LANs
are interconnected in a limited geographical
area.
 d. Metropolitan Area Network (MAN) This may include detailed information about
 this type of computer network is within the a certain product which includes the product
area of a town or city where it connects two name, description, price, and availability.
or more LANs or CANs.  AFFILIATION
e. Wide Area Network (WAN) -refers to the effectiveness of the linkages
 this type of computer network is used within between business organizations. For
regional or national areas example, Google, Yahoo!, and eBay have
f. International Network (Internet) tremendously and successfully formed
 this is considered as the largest computer partnerships that provide them diverse
network that allows users to access without information, thus making them the leading
restrictions online businesses today.
Networks Used For E-Business
E-Commerce (Electronic commerce)
 refers to commercial transactions executed
online using the internet. E-commerce is
displayed through technologies such as:
o Automated data collection systems
o Electronic funds transfer
o Electronic data interchange
o Internet marketing
o Inventory systems
o Online transaction processing
o Mobile commerce
o Supply chain management
 E-commerce uses the World Wide Web
E-Business Opportunities (WWW) for its transactions.
 with the use of e-business, small and large Buy-Side and Sell-Side E-Commerce
business organizations are provided with  The difference between buy-side e-
great opportunities to compete in the global commerce and sell-side e-commerce is that
market. E-business has the ability to transmit
the former focuses on supplier, and the latter
and transform business information and use
it to achieve competitive advantage. It is focuses on the consumers or customers.
designed to meet the needs of a business  Sell-side e-commerce has four types of
organization’s customers. online presence and each type has its own
 According to a research study conducted by objective and market.
Evans and Wurster entitled Strategies and a. Transactional and E-commerce
the New Economics of Information (1997), websites
there are three basic characteristics of
b. Portal or Media websites
information when combined with the
internet technologies, namely, REACH, c. Brand Building websites
RICHNESS, AND AFFILIATION. d. Service Oriented websites
 REACH ADVANTAGES OF E-COMMERCE
-refers to the potential number of local and  Efficient transactions done anytime and
international customers of a business anywhere.
organization that can interact with each  Quick electronic funds transfer.
other through the use of the internet. This  Convenient buying or selling from home or
includes catalogues, websites, and so on. place of business.
 RICHNESS  Reduced cost and time of order processing.
-refers to the information that business  Simpler, faster, and cheaper supply chain
organizations can share to their consumers. management.
  Quick reaching of target customers for BUSINESS MODELS OF E-COMMERCE
small-and medium-sized enterprises
(SMEs). BUSINESS-TO-BUSINESS (B2B)
 User-friendly ordering systems.  is a marketing type of business wherein
businesses for the productions of goods,
DISADVANTAGES OF E-COMMERCE business operations, or reselling of products.
 Lack of privacy of e-transactions.  Examples of B2B websites in the
 Unsecured use of the Internet (presence of Philippines:
viruses, hackers, and so on.) a. Philippine Companies – Filipino
 Depersonalized shopping. Business Directory
THREATS b. Pinoy Listing
 Servers containing important files and c. Yalwa
customer information being stolen. BUSINESS-TO-CONSUMER (B2C)
 Impostors duplicating e-commerce sites to  is the type of commercial transaction in
steal customers’ money. which businesses sell products or services
 Hackers attempting to steal customer directly to consumers.
information or mess up the site.  In the Philippines, the following are the top
 Authorized users with hidden motives e-commerce websites:
attacking e-commerce systems and/or selling a. Lazada Philippines
information to competitors. b. Shopee Philippines
c. Zalora Philippines
FEATURES OF E-COMMERCE d. Metrodeal
UBIQUITY e. Globe Online Shop
 this means that the marketable transaction or f. eBay Philippines
activity is accessible at any time, anywhere CONSUMER-TO-CONSUMER (C2C)
in the world  is used similarly as the classified advertising
GLOBAL REACH AND SECURITY section of a local newspaper or an auction
 also known as worldwide access, is the page.
maximum number of possible consumers a  is a convenient way for consumers to buy
business can reach. and sell goods without physically going to a
UNIVERSAL STANDARDS store.
 refers to a website that can be operated on a BUSINESS-TO-GOVERNMENT (B2G)
standard platform which follows identified  is a business model that refers to a business
methods and systems. that sells products, services, or information
RICHNESS to governments and/or government agencies.
 refers to the volume of the content of the GOVERNMENT-TO-BUSINESS (G2B)
website and the way it is used by consumers.  refers to government agencies that provide
Ensuring a site’s richness, by providing a services or information to a business
combination of messages and means to organization.
improve customer experience, is essential  Examples of G2B model websites are those
for business. that support AUCTIONS, as well as
INTERACTIVITY BENDER AND APPLICATION
 refers to the relationship between a SUBMISSIONS.
consumer and an e-commerce website.  Examples of G2B model websites are those
INFORMATION DENSITY that support AUCTIONS, as well as
 refers to the amount of products that can fit BENDER AND APPLICATION
on a computer screen. SUBMISSIONS.
GOVERNMENT-TO-CITIZEN (G2C) 5.PRIVACY –the degree of privacy is higher
 is being used by the government to approach compared to a desktop PC.
and communicate with citizens in general. 6. AVAILABILITY –users can freely access
 This model implements provides services them at any time of the day.
such as: M-COMMERCE FORCES
a. Birth registration • Fourth (4th) and Third (3rd) Generation
b. Marriage and death certificates Technologies
from the Philippine Statistics • Wireless Application Protocol (WAP)
Authority (PSA) • iMode Access Platforms
c. Car registration from the Land • Personalized Services
Transportation Office (LTO) DIFFERENCES BETWEEN E-BUSINESS AND
E-COMMERCE SECURITY SYSTEMS E-COMMERCE
AUDITABILITY  E-commerce and e-business are two
• data should be documented in such a way evolving methods of conducting business
that can be audited for the real requirements. that are gaining importance with the passage
AUTHENTICITY of time.
 there should be procedures to authenticate a  IBM defined e-business as “the
user before giving him/her access to the transformation of key business processes
required information . through the use of internet technologies.”
AVAILABILITY  On the other hand, e-commerce is best
 it is a requirement that information must be described as the buying and selling of goods
available anytime and anywhere, and it must around the web, which is commonly known
be bound by a time limit. as online transactions.
CONFIDENTIALITY  The main difference between the two are the
 information should be kept and not be end-user and integration.
accessible by an unauthorized user. It should
not be interrupted during the transmission. Basis for E- E-Business
ENCRYPTION Comparison Commerce
 information must be secured through the
encryption and decryption of an authorized Definition Trading of Running a
user. merchandise business
INTEGRITY over the using the
 information must not be modified during its internet internet
transmission over a network. Honesty and
Focus on Yes No
strong moral principles must be applied.
monetary
NON-REPUTATION
transactions
 there should be assurance that someone
cannot rebuff on something. Type of Commercial Business
transactions transactions transactions
BENEFITS OF MOBILE TECHNOLOGIES: carried out
1. UBIQUITY –they allow users access
Requirement Website or Website,
anywhere.
s mobile app computer
2. REACHABILITY –users are easy to reach.
relationship
3. CONVENIENCE –there is no need for
management,
users to have fixed-line connection.
enterprise
4. SECURITY –they ensure that user
resource
information is free from the risk of loss or
planning,
theft through authentication.
 supply chain invention for its public disclosure for a
management limited period of time.
 Copyright –it protects works of authorship,
Required Internet Internet, such as writings, music, and works of art,
network Intranet, and that have been tangibly expressed.
Extranet SHIPPING RESTRICTIONS
 shipping companies have different
restrictions on products or goods. Doing
research will help identify which shipping
companies could best serve a business.
 The following are products typically
restricted for shipping:
a. Air bags
b. Animals
c. Perishable materials, such as fresh
fruits and vegetables and alcohol
d. Hazardous materials, such as
aerosols, ammunition, cigarettes,
dry ice, explosives, nail polish,
perfumes, and poisons.
INVENTORY
 there are certain rules and prohibitions that
align with lease, deed, or zoning codes when
GUIDELINESS AND LAWS GOVERNING E- it comes to stock inventory for businesses.
COMMERCE BUSINESS RESTRICTIONS
The following are challenges that may interfere with  different types of insurance exist for small
starting an online business: businesses such as general, product,
TAXES professional, and commercial liability
 Every state and/or country has different insurances and hone-based insurance. The
rules and laws regarding taxes. Therefore, insurance depends on the location and nature
conducting research and understanding your of a business.
target market are necessary to avoid LICENSES AND PERMITS
problems about taxation.  a license is needed to sell products or
TRADEMARKS, PATENTS, AND services. Licenses are dependent on the
COPYRIGHTS location of a business and are distributed by a
 there are misconceptions about the local licensing department.
definitions of the three above-mentioned PAYMENT CARD INDUSTRY (PCI)
words, especially with each one of them COMPLIANCE
having different legal implications. The  PCI compliance serves as protection for
United States Patent and Trademark Office online businesses, especially software-as-a-
provides the following definitions for the service (SaaS) e-commerce platforms, from
three words: problems such as data theft.
 Trademark –it is a distinguishing word,
phrase, symbol, and/or design that identifies
the uniqueness of a product or service of one
part from the others.
LAWS AND LEGAL REQUIREMENTS
 Patent –it is a property right granted by the
REGARDING THE SECURITY OF
US Patent and Trademark Office to an
CUSTOMER INFORMATION
 1. REPUBLIC ACT 8792 – ELECTRONIC 1.Amazon - it is an American e-commerce
COMMERCE ACT OF 2000 - this covers website that gives users an opportunity to
the mandates of the Philippine government buy products online worldwide.
in terms of executing online transactions 2. eBay - it is an American e-commerce
locally or internationally. website that provides various services to
2. REPUBLIC ACT 10173 – DATA consumers such as auctions, online
PRIVACY ACT OF 2012 - this prohibits payments, and online shopping.
the communication and sharing of written, 3. Alibaba - it is a well-known Chinese
electronic, and recorded information by an company that is now part of the global
individual to another. market of e-commerce. It specializes in
- The law involves the following three (3) retail, the internet, and technology.
main individuals: M-COMMERCE WEBSITES:
a. Data Subject –refers to an individual 1. Mobile vouchers - Purchasing of a gift
whose personal information is being voucher using a mobile app.
processed. 2. eToro Mobile - it is a platform that can be
b. Personal Information Controller –refers used to invest in stocks or trading.
to an individual, person, or business
organization that controls, holds, and UNIT 5 FUNCTIONAL AND ENTERPRISE
processes personal information and instructs SYSTEMS
another individual, person, or business
organization to control, hold, and process MANAGEMENT INFORMATION SYSTEM
the personal information on his/her behalf. (MIS)
c. Personal Information Processor –refers  According to the Eller College of
to a juridical person qualified to take action Management website a management
under the act. information system or MIS studies people,
3. CONSUMER PROTECTION technology, and organizations.
REGULATION – TRANSACTIONS  IS are useful for businesses of varying nature
THROUGH E-COMMERCE - the and purpose. Employees of different levels
Department of Trade and Industry (DTI), and roles make use of these systems. For
with the participation of other government example, a grocery store uses a computerized
agencies, issued a consumer protection database for identifying the best and worst
regulation that provides protection to selling products; on the other hand, a
consumers when buying and selling products boutique (e.g., Penshoppe) uses a database
and services through the use of e-commerce. system to sell products online.
4. TAX GUIDELINES FOR E-  MIS students are taught how to retrieve and
COMMERCE TRANSACTIONS IN store information that could help businesses
THE PHILIPPINES - on August 05, 2013, have better management and operations. IS
the Bureau of Internal Revenue issued are used for databases, networks, security,
Revenue Memorandum Circular No. 55- and more to ease the tasks of customers, staff,
2013, Reiterating Taxpayers’ Obligations in and managers.
Relation to Online Business Transactions. AN OVERVIEW OF MANAGEMENT
INFORMATION SYSTEM
 MIS is defined as the integrated machine
system that providesrelevant information in
order to support business operations,
REAL-WORLD EXAMPLES OF E-
management, and decision-making.
COMMERCE AND M-COMMERCE
 This MIS utilizes the following in order to
E-COMMERCE WEBSITES: meet its purpose:
a. A computer hardware and software
 b. Certain clear procedures (manual programmable if and only if the rules of instantly
procedures) recognizable decisions rules have been specified in
c. Appropriate models for certain advanced.
operations like analysis, decision- 2. Unstructured or nonprogrammable decisions
making, and more - A decision can be considered unstructured or
d. A database nonprogrammable if there was no pre-established
 MIS has subsystems that are approached decision procedure or rule. It is uncommon to justify
according to the following: the organizational cost in the preparation of the
a. Organizational functions procedure possibly because the decision procedure is
b. Managerial activities unclear or unpredictable.
 The following are some examples of ADVANTAGES OF MANAGEMENT
functional subsystems of MIS and its uses: INFORMATION SYSTEM
1. Management or top management- MIS  MIS communicates effectively with
is used by the top management mainly for stakeholders of businessorganizations. MIS
strategic planning. However, many top produces reports that are used to evaluate the
management officials use it for resource performance of employees, machines, and
allocation as well. investments for the management to make
2. Logistics- MIS is used for planning, decisions for the future.
control, and distribution.  MIS compares plans and budgets to the
3. Marketing- MIS is used for planning, actual performance of a business. This will
sales forecast, or sales or customer analysis. allow the management to take appropriate
4. Human Resources- MIS is used to plan actions based on the current situation of a
relevant employee requirements, analyze business.
employee performance, or administer  MIS produces reports that would identify the
salaries. strengths of business organizations which
5. Finance and Accounting- MIS is used in could lead to the availment of opportunities.
financial analyses, cost analyses, and so on.  MIS allows for the smooth flow and
USERS OF MANAGEMENT INFORMATION transition of data in various levels of
SYSTEM IN RELATION TO ITS ACTIVITIES business organizations.
1. Clerical staff- It refers to the users that  When it comes to accounting, MIS is the
handle direct transactions, process the main source of information about the
inputs, and answer various inquiries. financial health and situation of business
2. Managers (first level)- It refers to users organizations.
that obtain data related to operations and  MIS helps in cost and management control
assist in scheduling, planning, or making by taking away risks that are involved in
decisions. decision-making at the managerial level.
3. Information specialists- They refer to
users that would analyze information and TRANSACTION PROCESSING
assist in planning and reporting. INFORMATION SYSTEM (TPIS)
4. Top management- It refers to users that  A transaction processing system (TPS) is an
would check and Analyze reports regularly, IS that captures and processes a company's
retrieve requests, and assist in the business transactions necessary to update
identification of problems and opportunities data and support its basic operations. It plays
and decision-making. a significant role in recording, collecting,
MANAGEMENT INFORMATION SYSTEM storing, modifying, validating, manipulating,
FOR DECISION-MAKING processing, and retrieving diverse data
1. Structured or programmable decisions - A transactions. A TPS should be accurate,
decision can be considered structured or
 reliable, and user-friendly and should have expensive than batch processing, and its database
good performance. is always up to date.
 Transactions take place in business
organizations daily. Examples of Data Processing Activities of a Transaction
fundamental business operations that Processing System
involve transactions are customer orders; illustrates the data processing activities that take
payments; invoices; receipts; payroll; place in a TPS. The following steps are provided to
accounts receivable; accounts payable; order further explain how a TPS processes data:
entries; inventory; shipments; customer a. Basic data entry.
record updates; and data collection, editing, b. Data validation.
manipulation, and storage. c. Data verification.
Functions of a Transaction Processing System d. Data process.
illustrates the four functions of a TPS, namely, the e. Data storage.
input, process, output, and storage functions. f. Report of information.
1. Input Transaction Processing System Qualifiers
2. Output For a TPS to be qualified, the transactions processed
3. Storage by the system must pass the four stages of the ACID
4. Process test as follows:
Features of a Transaction Processing System 1. Atomicity
 Reliable transaction processing is essential 2. Consistency
for a business organization's success. 3. Isolation
Companies have to assure that customer 4. Durability
needs are promptly served and payments for CUSTOMER RELATIONSHIP MANAGEMENT
partners and suppliers are met. Transaction (CRM)
processing systems provide efficient and  Customer relationship management or CRM
organized methods of data processing and refers to the strategies and technologies used
analysis for increased performance and by business organizations to manage and
progress of business organizations. A TPS is analyze data from their stakeholders, current
characterized as follows: customers, and potential customers.
1. Controlled Access Businesses need to employ CRM in order to
2. Rapid Processing improve business-customer relationships,
3. Reliability which could result in customer retention,
4. Standardization increase in sales, and attraction of new
Types of Transaction Processing System customers.
 Every business is unique. Businesses require  A CRM system helps business organizations
different transaction processing systems for reach out to and stay connected with their
their operations and strategies depending on customers, improve profitability, and
their purpose. The following are the three streamline processes. It is the best way to
main types of transactions a TPS could allow different areas of business
perform: organizations to interact and build strong
1. Batch Processing - A business organization relationships with external stakeholders.
collects data from transactions, which
accumulate over a period of time, puts them
together in a group or batch, and allows the CUSTOMER RELATIONSHIP MANAGEMENT
system to process the entire batch all at once. (CRM)
2. Online and Real-time Processing - This  Demonstrates how a customer orders using
involves data being processed immediately upon the online and inventory management
entry or if a transaction occurs. It is more system. The customer must log-in to the
 system, check the status and availability of 2. Interaction- A DSS is devised to support
the product that he/she wants to buy, place interaction and operations controlled by employees
an order in the system, verify the order, and who are part of a decision-making group of a
pay for the order. When a customer places company.
an order in the system, the system will 3. Ancillary- A DSS can be used as a guide for
produce a payment receipt for the customer. decision-making by any employee of a company, but
 The Sales and Inventory Management it does not serve as a replacement for decision-
System can produce many useful reports that makers.
can be generated directly from the system 4. Repeated use- A DSS is designed for numerous
which include the following: repeated operations. A DSS can be customized for
a. status report routine or specific use depending on the need and
b. analysis and margin report purpose.
c. forecasting report 5. Identifiable- A DSS can be an independent system
d. inventory ageing report that gathers and reproduces information from other
e. sales summary report systems or subsystems.
f. sales report per product and product type 6. Task-oriented- A DSS is designed to fulfill
g. sales report per customer or customer various tasks that help in decision-making such as
group intelligence and analysis; classification, production,
h. stock inventory report and choosing of alternative decisions; and
DECISION SUPPORT SYSTEM (DSS) implementation of the decision.
1. Communication-driven DSS - Focusing on the 7. Decision impact- With the help of a DSS,
internal aspect of a company, a communication- decisions are more accurate, appropriate, and
driven DSS provides a platform for people to meet effective, owing to the system's ability to analyze and
and/or collaborate. simplify information.
2. Data-driven DSS - This type of DSS is used for 8. Supports individual and group decision-
seeking answers from a given database. Managers, making- A DSS can provide information access to all
staff, and suppliers use the Internet, a main frame users or employees and, at the same time, give each
system, or a client/server link to access databases. of them the ability to construct their own content
3. Document-driven DSS - This type of DSS is the regarding a decision.
most common. This system uses the Internet and a 9. Comprehensive data access- Simultaneous access
client/server system. to data using a DSS is possible using different
4. Knowledge-driven DSS - This type of DSS has a sources. This gives companies the freedom to choose
broad range of users, from employees of a company which data warehouse would serve their interests and
and its customers to third-party entities. It is used to needs best.
spread management instructions or to choose 10. Easy to develop and deploy - A DSS is designed
products and/or services. to manage and store large amounts of data that can be
5. Model-driven DSS - This is a complex system accessed multiple times. This allows companies to
used by staff and managers to analyze and make use stored data repeatedly for different projects or
decisions regarding a business. Different models are decisions.
used depending on their intended purpose. This DSS 11. Integrated software- A DSS enables employees
uses a PC software and hardware, the internet, and and IT professionals to construct data models,
client/server systems. analyses, and reports for different purposes.
. 12. Flexibility- A DSS is a versatile tool that can be
customized according to the purpose it serves.
Characteristics of a Decision Support System
1. Facilitation- A DSS can assist in a company's
decision-making process and activities. Objectives for Using a Decision Support System
The following are the objectives for using a DSS:
1. Make decision-making processes easier and more  Financial Systems. These computerize the
effective operations of a business relating to finance,
2. Assist a decision-maker, but not replace him/her such as accounting and budgeting.
3. Improve decisions made for a company  Operational systems. Also known as service
Components of a Decision Support System systems, these control the business.
DSS components may be classified as follows:  Strategic systems. These combine business
1. Inputs strategies with computer strategies.
2. User knowledge and expertise The application of IT allows these systems to aid the
3. Outputs development of business strategies.
4. Decisions Characteristics of a Strategic Information System
Advantages and Disadvantages of Using a The following are some of the characteristics of an
Decision Support System SIS:
The following are the advantages of using a DSS: 1. Main task. It should use business strategies
1. Time-saving to gain competitive advantage.
2. Enhanced effectiveness 2. Key objective. It must aim to maximize
3. Improved interpersonal communication opportunities with the integration of IS and
4. Increased competitive advantage business strategies.
5. Reduced costs 3. Direction. The direction should come from
6. Increased decision-maker satisfaction the command of executives and employees
7. Promotes learning and should reinforce the integration of the
8. Improved personal efficiency management with IS.
The following are the disadvantages of using a DSS: 4. Main approach. The SIS should be
1. Monetary cost entrepreneurial and multiple.
2. Overemphasized decision-making Types of Transaction Processing System
3. Assumption of relevance Hybrid Processing - This is a combination of two
4. Transfer of power methods, batch and online and real-time processing.
5. Unanticipated effects It collects data upon entry but processes them in a
6. Obscuring responsibility specific period of time or in intervals.
7. False belief in objectivity
8. Status reduction Business organizations expect TPSs to do
9. Information overload the following:
Applications of Decision Support System  Maintain a high degree of data integrity and
A DSS can be applied in the following disciplines: accuracy,
 Medical diagnoses  Perform transactions in an organized
 Business and management manner.
 Agricultural production  Produce timely relevant reports and
 Forest management documents.
TRATEGIC INFORMATION SYSTEM (SIS)  Improve business organizations in terms of
 In 1982, Dr. Charles Wiseman introduced labor efficiency and fast transactions.
the SIS, which had the primary purpose of  Help provide quality service to clients and
gaining competitive advantage for customers.
businesses. An SIS uses an IS that analyzes  Help build harmonious relationships and
business initiatives to create strategies. maintain customer loyalty.
These systems are used by companies for  Help attain competitive advantage.
more efficient, effective, and controlled
operations.
Types of Strategic Information System 5.6 VENDOR MANAGEMENT SYSTEM (VMS)
SIS may be categorized into the following types:
A vendor management system (VMS) is defined as  Time sheets or time records are available in
the web- based procurement application that allows one particular place.
business organizations to directly manage the process  Overtime can be checked, capped, and
of procurement for both temporary and permanent approved.
staff and contract and contingent staff. Benefits of Vendors
 Staff approval is easy and fast.
A VMS includes:  Invoices are accurate and presented faster in
 Job requisition a standardized manner.
 Tracking services  Errors found in reports are minimized.
 Billing automation  They can access staffing requirements faster
 Functionalities of business intelligence (BI) at any time.
 Management reporting 5.7 ACCOUNTING INFORMATION SYSTEM
 Approval of procedures and processes (AIS)
 Workflow engine  A computerized accounting system is a
Advantages of Using a Vendor Management software that helps maintain account
System records, automatically generate financial
 The hiring of staff is only applicable if statements, calculate billing amounts, and
selected from the list of approved staff. more.
Competitive bidding will arise if the vendors  The use of an accounting information
will bid for their staff to be hired. Standard system (AIS) in business organizations is
job descriptions are created by the not only for accounting but also for
purchaser. improving management control. The AIS
 All staff information and specific details are architectural model simply shows that it
available in one particular system, and the focuses on both financial and management
system can rank proposals based on the accounting and connects them with each
given requirements of the purchaser. other.
 A workflow engine is centralized and made AIS is organized into three levels or subsystems
available to manage the processes 1. Basic level. It refers to elementary data that
effectively. are produced by business processes related
 A tracking system is available. All to simple daily business operations. This
questions, interviews, or even rejections can level is for operational accounting systems
be tracked, and they are recorded and noted. or transaction processing systems.
 Most staff rates are low because of the 2. Intermediate level. It refers to elementary
competitive environment. data that are reorganized in order to respond
 The entire process is faster, and there is no to the standards set by financial accounting
time spent in reviewing staff that are too to produce financial statements and other
costly related financial reports, balance sheet,
Management of Staff with the Use of a Vendor statement of cash flows, and so on. This
Management System level basically refers to financial accounting
 All staff use the same time cards, and they systems, financial reporting systems, or
are being hired with the same rates and general ledgers.
expenses. 3. Top level. It refers to both operational and
financial data that are processed in order to
 The reporting schedules and time for all
produce relevant information and knowledge
consultants are the same.
to support either managerial or strategic
 Staff utilization is being observed. The
management decisions such as budgeting.
system maintains accurate data for staff
This level basically refers to management
utilization, such as the loss of staff.
accounting systems.
General Model of an Accounting Information Functions of an Accounting Information
System System
1. End users. AISS have end users that are The following are the functions of an AIS:
typically divided into two types: internal and 1. Identify business processes and capture
external users. relevant accounting data
2. Data sources. AISS allow data to enter the 2. Record accounting data whether from
system through data sources such as manual or computer-based records
financial transactions These data coming 3. Observe internal control processes
from financial transactions could either be 4. Process, classify, summarize, and
from internal or external sources. consolidate raw accounting data
3. Data collection. The first operational level 5. Generate internal and external report
of an AIS collects data from various sources IMPORTANCE OF AN ACCOUNTING
and ensures that these data are accurate, INFORMATION SYSTEM TO
valid, complete, and free from any errors. ACCOUNTANTS
This is also the most crucial stage of an AIS Accountants play a vital role in using AISS.
because of the concept of garbage-in, They can serve as the following:
garbage-out (GIGO). 1. Users of AISS
4. Data processing. Data must be processed to 2. Members of the AIS design and
be transformed into useful information. implementation team
5. Data management. The database is the main 3. AIS auditors
repository of any IS of a business organization. Types of Accounting Information System
6. Information generation. This is a process AISs have different types that are commonly
where relevant information is compiled, used by business organizations. Business
arranged, formatted, and presented to users. organizations can choose the appropriate AIS
 Storage allows users to add new records in they want to implement depending on the
an AIS and store them in a certain place in a following:
database. A. The size of the business organizations
 Retrieval allows users to locate and extract B. The nature of its business processes
existing records from a database and process C. The extent of computerization
them accordingly. D. The management's philosophy
 Deletion allows users to permanently delete THREE TYPES OF AIS:
records from a database 1. Manual system
Using Accounting Information System in 2. Legacy system
Business Processes 3. Modern and Integrated IT Systems
Business processes refer to the sequence of 5. 8 Human Resource Management System
performed tasks that produces a desired output  A human resource management system
for a business organization. It is an event that has (HRMS) is a human resource software
a beginning and an end. that handles various human resource
The following are some examples of business modules, binding human resource
processes: management and technology together
1. revenue process sales processes, sales Human resource management (HRM) is
return processes, and cash collection a discipline that merges technology with
processes its HR processes.
2. expenditure process - purchasing processes  An HRMS is a system that combines
and purchase return processes HRM and IT processes to automate
3. conversion process - planning processes human resource activities within a
4. administrative process-investment business organization One of the many
processes tasks of HRMS is to keep track of all
 business organizations' employees and A CRM system primarily allows employees to
their information. The automation of efficiently access and organize customer data. It can
human resource management tasks and also record customer activity through various means,
processes keeps valuable employees organize workflow processes, and allow senior
focused on their core functions in the employees to track operations and performance.
organization. 1. Marketing automation
Advantages of Human Resource Management 2. Salesforce automation
System 3. Contact center automation
1. Paperless HR department. 4. Geolocation technology or location-based services
2. Efficient HR department. 5. Workflow automation 6. Lead management
3. Less task performance time. 7. Human resource management
4. Simple performance management. 8. Analytics
5. Planning and analysis. 9. Artificial intelligence
6. Quick analysis of HR issues.
7. Quick and accurate retrieval of information.
In addition, HRMSs can also be run in various web-
based methods such as the following: Customer Relationship Management Examples in
a. Intranet. An HRMS could use an intranet where Practice
system operation is limited only within the business 1. Contact center.
organization. 2. Social CRM
b. Extranet. An HRMS could use an extranet where 3. Mobile CRM
system operation could be shared outside the business 4.Business-to-Business (B2B) Practices
organization.
c. Portals. They offer various links to business 5. 9 Enterprise Resource Planning (ERP)
internal information and can also access the internet.  Enterprise resource planning or ERP is an
integrated software tool that uses, maintains,
Figure 5.8 shows how the CRM system analyzes and and manages enterprise data. It helps
processes customer information. It shows how a business organizations manage the supply
CRM system allows a business organization to chain, production, human resources,
perform the following tasks: customer orders, and other important
 Record and store the contact information of business functions.
current and prospective customers.  The ERP system is a package business
 Identify and analyze sales opportunities. software that allows business organizations
 Collect, store, and solve customer service to automate and integrate business
issues. processes. It allows information to be shared
 Manage and monitor marketing campaigns. across an enterprise and produce relevant
output in a real-time environment. The main
A CRM system records the interactions and purpose of ERP is to integrate enterprise-
conversations taking place between customers and wide business information that would
business organizations daily. With a CRM system, support business processes related to
everyone in a business organization can see the finance, human resources, production,
communication between the customer and the logistics, manufacturing, sales, and so on. It
company, their purchase, their preferences, the time provides a strong enterprise database where
of purchase, the method of payment, and so on. data in all business transactions are entered,
processed, and reported.
Components of a Customer Relationship
Management System
Benefits of Enterprises Resource Planning in a
Business Organization
The following are some benefits of ERP
 Faster response time
 Improved interaction in every corner of the
enterprise
 Improved order management
 Improved interaction with clients and
customers
 Reduced operating costs and financial
responsibilities
 Reduced IT cost
 Improved productivity
 Improved standardized processes and
systems
ERP provides an integrated database where each
functional unit in an organization can create,
maintain, update, and report any business or
transaction-related information to its own database.
For example, employee database, customer database,
supplier database, product database, and so on. These
integrated databases can share common data and be
maintained in one central database in the ERP
system.
The advantages of these integrated databases are:
 Data can be shared anytime.
 Data redundancy is reduced.
 Data consistency is maintained and
improved.
 Data independence is observed.
 Data integrity is improved.

SAP is the leading software for ERP in various

sectors such as manufacturing, distribution, service,
and more.

 Systems Applications and Products (SAP)

is a German company and market leader in
ERP. It is considered the third largest
software company in the world. SAP
solutions cater mostly to small- and
medium-sized enterprises (SMEs).