Business Applications

TANMAY ROY
ID: 6204437012
SUBJECT: EMIS-514 (AUDITING, TAXATION & IT)
SEMESTER: SPRING-2021
MBA(EVENING)
DEPARTMENT OF MANAGEMENT INFORMATION
SYSTEMS
UNIVERSITY OF DHAKA
Business Applications
A business application is a software solution or a set of programs that provide business
functionality. They're also used to enhance and monitor productivity throughout the organization.
Business applications can be used externally, internally, or with other business apps.
They can be built in-house or be purchased as off-the-shelf solutions. Which type of software a
business chooses depends on their specific needs and budget.
Types of Business Applications
1. E-commerce
2. Electronic Data Interchange
3. Point of Sale
4. Electronic Banking
5. Electronic Fund Transfer
6. Image Processing
7. Artificial Intelligence
8. Expert System
1. E-commerce

E-Commerce or Electronic Commerce means buying and selling of goods, products, or services
over the internet. E-commerce is also known as electronic commerce or internet commerce.
These services provided online over the internet network. Transaction of money, funds, and data
are also considered as E-commerce.
 Types of E-Commerce Models
Electronic commerce can be classified into four main categories. The basis for this simple classification is the parties that are
involved in the transactions. So the four basic electronic commerce models are as follows,
1. Business to Business
This is Business to Business transactions. Here the companies are doing business with each other. The final consumer is not
involved. So the online transactions only involve the manufacturers, wholesalers, retailers etc.
2. Business to Consumer
Business to Consumer. Here the company will sell their goods and/or services directly to the consumer. The consumer can
browse their websites and look at products, pictures, read reviews. Then they place their order and the company ships the
goods directly to them. Popular examples are Amazon, Flipkart, Jabong etc.
3. Consumer to Consumer
Consumer to consumer, where the consumers are in direct contact with each other. No company is involved. It helps
people sell their personal goods and assets directly to an interested party. Usually, goods traded are cars, bikes, electronics
etc. OLX, Quikr etc. follow this model.
4. Consumer to Business
This is the reverse of B2C, it is a consumer to business. So the consumer provides a good or some service to the company.
Say for example an IT freelancer who demos and sells his software to a company. This would be a C2B transaction.
 Process of E-commerce
When you log into our Amazon and purchase a book, this is a classic example of an e-commerce
transaction. Here we interact with the seller (Amazon), exchange data in form of pictures, text,
address for delivery etc. and then we make the payment.

Example:
Amazon, Flipkart, Shopify, Myntra, Ebay, Quikr, Olx are examples of E-commerce websites
2. Electronic Data Interchange
Electronic Data Interchange (EDI) is the electronic interchange of business information using a
standardized format; a process which allows one company to send information to another
company electronically rather than with paper. Business entities conducting business
electronically are called trading partners.
Components of EDI
A device on which to transmit the data.
An application or an outsourcing company that translates the data into a standardized EDI
format.
A connection between the sender and the recipient.
Users to send and receive data.
 Process of EDI
Suppose your company’s information is stored within your ERP system, such as details related to purchasing,
inventory levels, invoicing and billing, shipping and so on. EDI solutions like Mapadoc or Edisoft integrate with your
Sage ERP system, accessing and using the information needed to create the documents you need to do business
with other companies.
Both your suppliers and your clients have specific requirements as to how they do business. Things like ship-to
addresses, unique pricing, and so on, that are determined when a deal is made and have to be taken into account
when transactions take place. This is the data that gets used by EDI solutions to facilitate trading between
businesses.
EDI uses the standard of data (ANSI or EDIFACT) to ensure requests from one party are compatible with the
supplier’s information system so that the supplier can fulfill orders placed. It helps companies doing businesses
with each other, particularly suppliers that can consistently meet the requirements and terms of their clients, like
retailers and distributors.
This is all organized during the implementation of EDI software, when fields are mapped to each other so that the
relevant data is used. When a request is received, the data is converted to fit the system of the recipient and
crucial information for the transaction is used to generate all incoming and outgoing documents.
Example of EDI
Common examples include purchase orders (EDI 850), shipping statuses (EDI 214), invoices
customs information, payment confirmations (EDI 820), and inventory documents.
3. Point of Sale
A point of sale system, or POS, is the place where your customer makes a payment for products
or services at your store. Simply put, every time a customer makes a purchase at your store,
they're completing a point of sale transaction.
 Key features to look for in a POS
system
• Billing and order processing.
• Sales monitoring and reporting.
• Inventory and stock management.
• Cross channel returns management.
• Customer relationship and experience.
• Employee management.
• Loyalty programs and gift cards.
Process of POS
A POS system is made up of hardware and software that works together to process sales and
payment transactions at the point of purchase. It performs all the basic cash registers functions
like ringing up items by department, tracking sales, adding taxes, and creating receipts.

Example
Restaurants, retail businesses, and grocery stores all have their specialties and that is why they
need a POS system that meets their specific needs.
4. Electronic Banking
Electronic banking is a form of banking in which funds are transferred through an exchange of
electronic signals rather than through an exchange of cash, checks, or other types of paper
documents. Transfers of funds occur between financial institutions such as banks and credit
unions. They also occur between financial institutions and commercial institutions such as stores.
Whenever someone withdraws cash from an automated teller machine (ATM) or pays for
groceries using a debit card (which draws the amount owed to the store from a savings or
checking account), the funds are transferred via electronic banking.
 Elements of e-banking
• Banking Software

Software which provide different transaction facilities.

• Communication Network

A network is required for communication between client and employees and manager for which radio
communication and telephone are used

• Delivery channels

There are number of different Delivery channels to facilitate for example SWIFT, Banksy etc

• Switching System

To transfer transactions in their right place and at right time switching systems are used.
 Process of E-banking
• First you need to register your bank account with net banking facility.
• After that, you will get a Customer ID (User ID) and password.
• Log on to the bank portal using user id and password.
• Do the required transactions using computer.
• Log out the session.
 Example of E-Banking
• Online Banking.
• ATM and Debit Card Services.
• Phone Banking.
• Sms Banking.
• Electronic Alert.
• Mobile Banking.
• Fund Transfer Services.
• Point of Sales Banking.
5. Electronic Fund Transfer
Electronic Funds Transfer (EFT) is a system of transferring money from one bank account directly
to another without any paper money changing hands. One of the most widely-used EFT
programs is direct deposit, through which payroll is deposited straight into an employee's bank
account. However, EFT refers to any transfer of funds initiated through an electronic terminal,
including credit card, ATM, Fedwire and point-of-sale (POS) transactions. It is used for both credit
transfers, such as payroll payments, and for debit transfers, such as mortgage payments.
 Types of EFTs
The most common types of EFTs include:
• Direct deposit: Enables businesses to pay employees. During the employee onboarding process, new
employees typically specify the financial institution to receive the direct deposit payments.
• Wire transfers: Used for non-regular payments, such as the down payment on a house.
• Automated Teller Machines (ATMs): Allows cash withdrawals and deposits, fund transfers and checking of
account balances at multiple locations, such as branch locations, retail stores, shopping malls and airports.
• Debit cards: Allows users to pay for transactions and have those funds deducted from the account linked
to the card.
• Pay-by-phone systems: Allows users to pay bills or transfer money over the phone.
• Online banking: Available via personal computer, tablet or smartphone. Using online banking, users can
access accounts to make payments, transfer funds and check balances.
 How EFT works
Transactions are processed by the bank through the Automated Clearing House (ACH) network, the
secure transfer system that connects all U.S. financial institutions. For payments, funds are transferred
electronically from one bank account to the billing company's bank, usually less than a day after the
scheduled payment date.
The ACH Network operates as a batch processing system. Financial institutions accumulate ACH
transactions throughout the day, which are handled via batch processing later on. According to
NACHA, which creates payment and financial messaging rules and standards, the ACH Network
handles 24 billion EFTs each year, accounting for more than $41 trillion transferred. The ACH Network
is one of the largest and most reliable payment systems in the world, according to the association.
• To complete an EFT, the receiving party must provide the following information:
• The name of the bank receiving funds
• The type of account receiving funds (e.g., checking or savings)
• The bank’s ABA routing number
• The recipient’s account number
Example of EFT
Online peer-to-peer payment apps like PayPal and Venmo. Pay-by-phone systems. Wire transfers.
Online or mobile banking.
6. Image Processing
Image processing is a method to perform some operations on an image, in order to get an
enhanced image or to extract some useful information from it. It is a type of signal processing in
which input is an image and output may be image or characteristics/features associated with that
image.
 Categories of Image Processing
Most of the common image processing functions available in image analysis systems can be
categorized into the following four categories:
• Preprocessing.
• Image Enhancement.
• Image Transformation.
• Image Classification and Analysis.
Process of Image Processing
Image processing basically includes the following three steps: Importing the image via image acquisition
tools; Analysing and manipulating the image; Output in which result can be altered image or report that is
based on image analysis.

Example
• Pixelmator.
• Inkscape.
• Fireworks.
• GIMP.
• Photoshop.
7. Artificial intelligence
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are
programmed to think like humans and mimic their actions. The term may also be applied to any
machine that exhibits traits associated with a human mind such as learning and problem-solving.
 Key Elements of Artificial Intelligence
There are four foundational elements to understand:
• Categorization
• Classification
• Machine learning and
• Collaborative filtering.
These four pillars also represent steps in an analytical process.
 How AI works
AI works by combining large amounts of data with fast, iterative processing and intelligent algorithms, allowing the software to learn automatically
from patterns or features in the data. AI is a broad field of study that includes many theories, methods and technologies, as well as the following
major subfields:

• Machine learning automates analytical model building. It uses methods from neural networks, statistics, operations research and physics to find
hidden insights in data without explicitly being programmed for where to look or what to conclude.

• A neural network is a type of machine learning that is made up of interconnected units (like neurons) that processes information by responding to
external inputs, relaying information between each unit. The process requires multiple passes at the data to find connections and derive meaning
from undefined data.

• Deep learning uses huge neural networks with many layers of processing units, taking advantage of advances in computing power and improved
training techniques to learn complex patterns in large amounts of data. Common applications include image and speech recognition.

• Cognitive computing is a subfield of AI that strives for a natural, human-like interaction with machines. Using AI and cognitive computing, the
ultimate goal is for a machine to simulate human processes through the ability to interpret images and speech – and then speak coherently in
response.  

• Computer vision relies on pattern recognition and deep learning to recognize what’s in a picture or video. When machines can process, analyze
and understand images, they can capture images or videos in real time and interpret their surroundings.

• Natural language processing (NLP) is the ability of computers to analyze, understand and generate human language, including speech. The next
stage of NLP is natural language interaction, which allows humans to communicate with computers using normal, everyday language to perform
tasks.
 Example of Artificial intelligence
• Google Maps and Ride-Hailing Applications
• Face Detection and Recognition
• Text Editors or Autocorrect
• Search and Recommendation Algorithms
• Chatbots
• Digital Assistants
• Social Media
• E-Payments
8. Expert systems
An expert system is a computer system emulating the decision-making ability of a human expert.
Expert systems are designed to solve complex problems by reasoning through bodies of
knowledge, represented mainly as if–then rules rather than through conventional procedural
code.
 Components of expert systems
There are 5 Components of expert systems:
• Knowledge Base.
• Inference Engine.
• Knowledge acquisition and learning module.
• User Interface.
• Explanation module.
 Process of Expert System
• Step One: Define All Deliverables
• Step Two: Lay Out the Process
• Step Three: Determine the Optimal Level of Expertise for Each Step
• Step Four: Control for Consistency
• Step Five: Map Out the Key Components of Your Expert System to Refine First
• Step Six: Each Quarter Reevaluate Your Expert System to Prioritize the Next Block to Enhance
and Refine
 Example of Expert System
Following are the Expert System Examples:
• MYCIN: It was based on backward chaining and could identify various bacteria that could
cause acute infections. It could also recommend drugs based on the patient's weight. It is one of
the best Expert System Example.
• DENDRAL: Expert system used for chemical analysis to predict molecular structure.
• PXDES: An Example of Expert System used to predict the degree and type of lung cancer
• CaDet: One of the best Expert System Example that can identify cancer at early stages