Electronic Document Management System (EDMS)

Does your organization deal with a huge number of documents? Is your document control too
complex to function smoothly? Then you would require an Electronic Document Management
System (EDMS) implemented within your organization.

For organizations that have intensive and complex business processes, EDMS should be
implemented for effectiveness. Document control is very important to ensure that no out-dated
documents are used and only the latest, correct, and approved documentation are used in
circulation within the organization.

Out-dated and incorrect documents can cause confusion and affect business operations in terms
of work quality, efficiency, and costs. These issues can bring in negative consequences like
client loss, confusion within departments, and legal issues.

Internal and external auditors are employed to ensure that there is no non-compliance to avoid
such situations. Because handling corporate and legal documents is so important, companies
invest heavily in specialized software programs to keep such flow of documents in control.
These software and systems are called the EDMS systems and are usually integrated with the
organization’s existing systems.

EDMS is a software system used to create, manage, track, and store important documents and
information. It keeps a track of the different versions modified by authorized personnel over a
period of time. It involves the digitalization of information, standardizing document workflow
systems, and records management systems.

It aims to get rid of the hard copy papers which consumes space and time. Zoe Talent Solutions
has designed this training program for participants that belong to departments and functions
that oversee back-office processes or involved in a lot of repetitive documentation processes.
Implementing EDMS is a kick-start to digital transformation goals within a company. Going
digital with processes heads towards automation, analytics, and modernized technological
business operations.
1. The definition of ‘document’ and ‘document management

In common language the word document usually means a container of information (usually on
paper) containing written or drawn information for a particular purpose in a structured way.
Traditionally, a document is a piece of paper or a collection of papers, for instance, a memo, a
letter, a mission statement, a bill of materials or a customer invoice. Central to the idea of a
document is usually that it can be easily transferred, stored and handled as a unit. “the word
document usually means an information carrier (usually on paper) containing written or drawn
information for a particular purpose” (Löwnertz 1998). Over the last decade, the term document
has undergone a radical change in definition. This change is partly due to IT. Thus a large part
of the documents handled in today’s business world are stored as individual computer files and
are treated as units by the operating and email systems.

Information technology is now capable of producing a new electronic document, which can
house graphics, text, CAD, and multimedia objects, (i.e. audio or video clips). Documents are
processed and stored in electronic form not as physical objects but as digital ones. The
Document is no longer the place where words are put on a page, but rather a collection of
elements or objects related to a particular topic, brought together. Therefore, a new definition
of a document in electronic age emerges. “An electronic document is an information container
in electronic form, which gathers together information from a variety of sources, in a number
of formats, around a specific topic to meet the needs of a particular individual” (Björk 2001).

2. Evolution of Document Management

Documents in the construction sector have not undergone major changes since the middle of
the 20th century. Plan drawings, bills, specifications, etc., look as they did some decades ago.
The technology for producing, managing, duplicating, and distributing such documents has,
however, undergone many fundamental changes (Björk 2001). Firstly, the introduction of
photocopying in the 60’s reduced the cost of duplicating information. Afterwards, the
introduction of technological innovation such as persona l computing for the dayto-day work
during the 80’s, and the mass utilization of CAD-systems, word-processing and other software,
helped to reuse information. In the 80’s the fax became also a popular data transfer method and
was used to handle offers, send graphics, etc., but was not useful for larger drawings or
documents. Finally, in the late 80’s and early 90’s Internet made possible the document transfer
via mail which was a great step for document management. Nevertheless, on most sites the
receipt, creation, authorization and distribution of incoming, outgoing and internal documents,
are handled by a manual system totally dependent on the photocopier, often slow, inefficient
and at worst unmanaged, uncontrolled and error-prone. Currently, it’s nearly 10 years after the
beginning of the mass commercialization of Internet, the media that have progressed in an
exponential way.

3. The failure of traditional Document Management

Traditional Document Management is known as passive management of files where documents

reside when the user has finished with them. Most users bypass or ignore the organizational
rules about filing documents with the records centre file rooms. Once users have obtained the
documents important to their activity, they tend to hoard the information. At most, they will
wrap up all the records associated with a project at the conclusion of the activity. There is no
value added in request, receipt, and disposition systems for documents in file folders that are
not accessible or retrievable. Moreover, traditional Document Management is paper-based, with
the consequent nontraceability, possible loss, information fragmentation, and not accessibility
of the information.

4. Electronic Document Management Systems

Any company will one day feel a need for some kind of Electronic Document Management
System (EDMS) to control their ever-increasing number of various documents and drawings.
Companies often resist ‘this urge’ and are deterred by the costs and complexity involved in
implementing an EDMS. Using an EDMS effectively, requires a major change in working
practices, although most technical aspects are resolved by the adoption of low cost databases
and easier integration with the Windows environment. A useful EDMS should not only control
documents but also provide access to them throughout the company and even to clients or other
participants of the project via Internet or Extranet. An EDMS should also centralize data in an
easily accessible environment, allowing users to store, access, and modify information easily
and fast. Furthermore, the task of managing all the information needed to design and construct
any major facility is a real challenge, and many believe that more efficient information
management is a primary mechanism for the construction industry to increase its productivity
(Egan 1998). The standard features of a good system should still include the following
functionalities: searching facility, viewing without the use of the original application, red-lining
and marking-up feature, printing and plotting, workflows and document life cycles, revision
and version control, document security, document relationships, status reporting,
issue/distribution management and remote access. The goal of document management is to
share information by making documents secure, accessible, retrievable, and interchangeable.
The solution to this situation is Electronic Document Management Systems.

5. Advantages of EDMS

Many companies use DMS to standardize the way information is for anybody with correct
privileges to find and access the document they want. An EDMS helps users to perform their
work easier and provides the company with security, data reliability, and work process
management. Many of these features eventually save time, simplify work, protect the
investment made in creating these documents, enforce quality standards, enable an audit trail
and ensure accountability. EDMS have the following advantages:

· Generally efficient location and delivery of documentation

· Ability to manage documents and data regardless

of originating system or format ·

· The ability to integrate computerized and paper-based systems ·

· Control of access, distribution and modification of documents

· Provision of document editing and mark-up tools

6. Limitations of EDMS

On the other hand, there are also drawbacks. The teething problems and change in working
culture and practices, which is required initially, very often deters the users.

· Achieving the kind of targets that are needed in today's environment requires major change
in the organization, including practices, systems, processes, and workflows. Right strategies
and implementation plans have to be developed, communicated and brought to life. And
because this is not easy, issues such as getting 'buy in', defining a strategy, selecting a system,
developing a training programme, defining operating procedures, modifying organizational
structures, reviewing use, extending use, etc., need to be thoroughly researched.
· EDMS technology and markets are changing fast, so it is worth researching for good ways
to keep up-to-date with new applications, new vendors, new uses, and new implementation
approaches. It is not easy to evaluate, select and use EDMS, and options for data storage,
increased networking capabilities, powerful desktop computing, software support, and
implementation should not be ignored. Business and organizational issues such as start-up costs,
payback maximization and analysis, cost justification and savings, should also be addressed.

· All the information (letters, reports, databases, drawings, etc.) must be in electronic
format, which is either created electronically or scanned in from a paper version. This includes
hand written notes and sketches as well as large maps and complex drawings. Much effort is
wasted in interfacing with non-compatible systems, particularly paper-based ones.

· Information exchange is at the level of the drawing as a single unit of information, rather
than the components depicted within the drawing.

· They do not allow concurrent working, where several designers work simultaneously on
the same drawing

BUSINESS PLAN

1. MEANING AND NATURE OF BUSINESS PLAN

Business Plan is a written document that describes the business idea and all the relevant internal
and external elements involved in launching a new venture. It describes the nature and context
of the business opportunities and the plans to exploit the opportunity. It is Wusually an
integration of functional plans in finance, marketing, manufacturing, and human resources. It
serves as a road map for the entrepreneur. The business plan is prepared by the entrepreneur in
consultation with lawyers, accountants, consultants, engineers, etc.
Investors, venture capitalists, bankers, and suppliers read the business plan. Each group reads
it for a different purpose. The focus and contents of the business plan will differ from one
venture to another depending on its nature and size.

Three main perspectives must be considered in every business plan.

(1) The perspective of the entrepreneur who must articulate what the venture is all about.
(2) Marketing perspective.
(3) Investors perspective.
Business plan is the blue print that provides a clear view of what the entrepreneur wants to do
and key variables influencing success. It must describe where you are, where you want to go
and how you propose to get there.
A business plan is a blue print or roadmap for building a business. It is a word picture of what
the entrepreneurial dream is, why the dream can be economically viable for those involved
and how the dream will be realized. A business plan is an operating document. Starting a new
enterprise is highly risky. If the venture fails, it can spoil career, wealth, reputation, family
and even life. Therefore, through thinking and planning is needed before starting.

2. IMPORTANCE OF BUSINESS PLAN

The business plan is a valuable document for the entrepreneur, potential investors and even
for the employees. The business plan is important to these people due to the following
reasons:
1. It helps determine the viability of the venture in a target market.
2. It guides the entrepreneur in starting the enterprise.
3. The thinking involved in the preparation of the business plan makes the entrepreneur aware
of the issues that could impede the venture’s success.
4. It serves as a guide to investors and thereby helps in obtaining finance.
5. Writing the business plan forces the founders to think about all aspects of the venture.
6. A clear business plan articulates the vision and goals of the founders.
7. A business plan communicates to all stakeholders. They can judge the venture’s future on
the basis of the business plan.
8. The business plan helps identify the important variables that will determine the success or
failure of the firm.
9. The business plan is used as a selling document to outsiders.

3. SIGNIFICANCE OF WRITING THE BUSINESS PLAN/PROJECT

PROPOSAL

Business Plan is a formal documentation which contains the set of business goals which are
attainable for the business. It can be regarded as significant because of the following reasons:
1. Helps in Setting Objectives for Managers: A detailed business plan helps in setting short
and long range objectives for the business. Specific objectives can be set and appropriate
strategies can be built around within a limited time frame.
2. Managing Workforce: With business plans the managers have the luxury to pre-determine
the requirements of the organizations in terms of the total manpower required. The rationale
for hiring people should be there in the business plan.
3. Creating a New Business: A business plan is a must have document when an entrepreneur
is planning to have an entirely new business in place. What could be the right steps in starting
a business, what are the pre-requisites and what are the resources which need to be arranged
should be necessary part of a business plan.
4. Providing Credibility: A good business plan converts a good business into a credible,
understandable and attractive business.

5. Makes Prospects Familiar: The business world is dynamic and diverse at the same time. A
good business plan brings in familiarity for people who do not know much about the business.

4. CONTENTS OF BUSINESS PLAN

The content of business plan depends upon the objectives and goals set for the business
undertaking. A business plan should include a market plan, financial plan, human plan, resource
plan, etc.
1. Title Page and Table of Contents: A business plan is a professional document and should
contain a title page with the company’s name, logo, and address as well as the name and contact
information of the company’s founders. Many entrepreneurs also include the copy number of
the plan and the date on which it was issued on the title page.
2. Executive Summary/Management Summary: It will usually contain a brief statement of the
problem or proposal covered in the major documents, background information, concise analysis
and main conclusions. It is intended as an aid to decision making by managers. Executive
summary should be concise a maximum of two pages and should summarize all of the relevant
points of the business venture.
3. Business Description, Vision & Mission Statement: Business description summarizes the key
technology, concept, or strategy on which the business is based. The mission statement clearly
states the company’s long- term mission. In the mission statement the use words should be such
that which would help direct the growth of the company. For example McDonald’s mission
statement reads like this- “To provide the fast food customer food
prepared in the same high-quality manner would world-wide that has consistent taste, serving
time, and price in a low-key décor and friendly atmosphere.
4. Business and Industry Profile: In industry analysis future outlook and trends of the industry
needs to be looked into. A proper analysis of the competitors in the market and industry should
also be carried out properly and the results should reflect in the business plan drafted.

5. Description of the Company’s Product or Service: The business plan should include the
overall description of what the company is going to offer to its customers in terms of
product/services on offer. Product/service detail should be written in a terminology-free style
so that it is easy for others to understand.

6. Market Analysis: The most important section in the business plan, the market analysis
section should include conclusive information of how the company will react to changes in
the market, generate sales, and explain why the company should be invested in. The market
analysis section should include:
a- Market opportunity
b- Competition analysis
c- Marketing strategy
d- Market research
e- Sales forecasts.

7. Management Team: The management team section should share in detail the management
team, as investors usually invest in people not their ideas. Included within this section should
be:
a- Management Talent and Skills
b- Organizational chart
c- Policy and strategy for employees
d- Board of Directors and Advisory Board
8. Managerial and Structural Aspects: In this the entrepreneur needs to decide which kind of
organization structure should be adopted. Further, the authority responsibility relationship
also needs to be planned out. It is also necessary for the organization to specify the type of
business process being followed.
9. Technical Analysis: In technical analysis the results of the technical feasibility carried out
earlier is drafted. In this generally the requirements of the plant and machinery, plant capacity
utilization, location of the plant etc. is analyzed and drafted.
10. Production Analysis: In this a comprehensive budgetary proposal with sub-budgets for all
necessary elements is drafted. In addition to this the quality control system of the
organization and inventory control systems detail should be there in the business plan.

11. Financial Plan: In this the source of capital whether it be fixed or working capital is
elaborated. Secondly, the capital structure in a broad based manner should also be a part of the
financial plan. Thirdly, schemes and strategies to ensure financial control and financial
discipline needs to be drafted firsthand. Other details such as agreements or Memorandum of
Undertakings (MOU) with banks, financial institutions, underwriters etc. should also be a part
pf the financial plan.
12. Human Resource Plan: The manpower planning and the need of human resource for the
organization should be analyzed and assessed. Business would do well to draft the procedures
for recruitment, selection, placement, career advancement plans, training and development
programmes, system of personnel compensation etc. in the business plan to draw in clarity about
the priorities of the business.

5. BUSINESS PLAN FORMAT

Every business plan is unique, reflecting its own elements and circumstances.

However, certain elements are universal and commonly followed.

1. Executive Summary (should not exceed 2 pages)

A. Name, Address, Contact Information of the Company,
B. Contact details of key people of the organization
C. Description of the business, its products and services, and the customer problems being
solved
D. Description of the market for the products and services on offer
E. Overview of the venture’s competitive advantages
F. Mentioning the brief description of managerial and technical expertise of key people

G. Highlighting financial forecasts through charts and graphs.

2. Vision and Mission Statement
3. Company history (if venture is existing)
4. Business and Industry Profile

A. Industry Analysis
• Industry background and overview
• Significant trends
• Rate of growth
• Essential success factors in the industry
B. Outlook of the Future stages of growth
C. Goals and objectives of the venture
• Operational Goals
• Financial Goals
• Other Goals

5. Business Strategy
A. Desired Image and Position in the Market
B. SWOT Analysis
• Strengths
• Weaknesses
• Opportunities
• Threats
C. Competitive Strategy
• Cost Leadership
• Differentiation
• Focus

6. Company Products and Services

A. Description
B. Patent or Trademark Protection
C. Description of Production Process
D. Future Product Offerings

7. Marketing Strategy
8. Location and layout of the Plant (if applicable)
9. Analysis of the Competitor
10. Management Team Description
11. Plan of Operation
12. Financial Forecasts
13. Loan or Investment proposal

6. ERRORS TO BE AVOIDED IN WRITING A WRITING PLAN

1. Submitting a “rough copy”, perhaps with coffee stains on the pages and crossed out words
in the text, tells the banker that the owner does not take his idea seriously.
2. Outdated historical financial information, or industry comparisons will leave doubts about
the entrepreneur’s planning abilities.
3. Unsubstantiated assumptions can hurt a business plan, the business owner must be prepared
to explain the “whys” of every point in the plan.
4. Too much “blue sky”- a failure to consider prospective pitfalls- will lead the banker to
conclude that the idea is not realistic.

5. A lack of understanding of the financial information is a drawback. Even if an outside source

is used to prepare the projections, the owner must fully comprehend the information.
6. Absence of any consideration of outside influences is a gap in a business plan. The owner
needs to discuss the potential impact of competitive factors as well as the economic
environment prevalent at the time of request.
7. No indication that the owner has anything at stake in the venture is a particular problem. The
lender will expect the entrepreneur to have some equity capital invested in the business.

E-commerce
In the emerging global economy, e-commerce and e-business have increasingly become a
necessary component of business strategy and a strong catalyst for economic development.

In the emerging global economy, e-commerce and e-business have increasingly become a
necessary component of business strategy and a strong catalyst for economic development.
The integration of information and communications technology (ICT) in business has
revolutionized relationships within organizations and those between and among organizations
and individuals. Specifically, the use of ICT in business has enhanced productivity, encouraged
greater customer participation, and enabled mass customization, besides reducing costs.

With developments in the Internet and Web-based technologies, distinctions

between traditional markets and the global electronic marketplace-such as business capital size,
among others-are gradually being narrowed down.

What is e-commerce?

Electronic commerce or e-commerce refers to a wide range of online business activities for
products and services It also pertains to “any form of business transaction in which the parties
interact electronically rather than by physical exchanges or direct physical contact.

E-commerce is usually associated with buying and selling over the Internet, or conducting any
transaction involving the transfer of ownership or rights to use goods or services through a
computer-mediated network. Though popular, this definition is not comprehensive enough to
capture recent developments in this new and revolutionary business phenomenon. A more
complete definition is: E-commerce is the use of electronic communications and digital
information processing technology in business transactions to create, transform, and redefine
relationships for value creation between or among organizations, and between organizations
and individuals.

Is e-commerce the same as e-business?

While some use e-commerce and e-business interchangeably, they are distinct concepts. In e-
commerce, information and communications technology (ICT) is used in inter-business or
inter-organizational transactions (transactions between and among firms/organizations) and in
business-to-consumer transactions (transactions betweenfirms/organizations and individuals).

In e-business, on the other hand, ICT is used to enhance one’s business. It includes any process
that a business organization (either a for-profit, governmental or non-profit entity) conducts
over a computer-mediated network. A more comprehensive definition of e-business is: "The
transformation of an organization’s processes to deliver additional customer value through the
application of technologies, philosophies and computing paradigm of the new economy."
Three primary processes are enhanced in e-business:

1. Production processes, which include procurement, ordering and replenishment of stocks;

processing of payments; electronic links with suppliers; and production control processes,
among others.

2. Customer-focused processes, which include promotional and marketing efforts,selling over

the Internet, processing of customers’ purchase orders and payments, and customer support,
among others.

3. Internal management processes, which include employee services, training,internal

information-sharing, video-conferencing, and recruiting. Electronic applications enhance
information flow between production and sales forces to improve sales force productivity.
Workgroup communications and electronic publishing of internal business information are
likewise made more efficient

What are the different types of e-commerce?

The major different types of e-commerce are: business-to-business (B2B); businessto-

consumer (B2C); business-to-government (B2G); consumer-to-consumer (C2C); and mobile
commerce (m-commerce).

What is B2B e-commerce?

B2B e-commerce is simply defined as e-commerce between companies. This is the type of e-
commerce that deals with relationships between and among businesses. About 80% of e-
commerce is of this type, and most experts predict that B2B ecommerce will continue to grow
faster than the B2C segment. The B2B market has two primary components: e-frastructure and
e-markets. Efrastructure is the architecture of B2B, primarily consisting of the following :

● logistics - transportation, warehousing and distribution (e.g., Procter and Gamble).

● application service providers - deployment, hosting and management of packaged software

from a central facility (e.g., Oracle and Linkshare).
● outsourcing of functions in the process of e-commerce, such as Web-hosting, security and
customer care solutions (e.g., outsourcing providers such as eShare, NetSales, iXL Enterprises
and Universal Access).

● auction solutions software for the operation and maintenance of real-time auctions in the
Internet (e.g., Moai Technologies and OpenSite Technologies).

● content management software for the facilitation of Web site content management and
delivery (e.g., Interwoven and ProcureNet).

● Web-based commerce enablers (e.g., Commerce One, a browser-based, XML enabled

purchasing automation software).

E-markets are simply defined as Web sites where buyers and sellers interact with each other
and conduct transactions.

What is B2C e-commerce?

Business-to-consumer e-commerce, or commerce between companies and consumers, involves

customers gathering information; purchasing physical goods (i.e., tangibles such as books or
consumer products) or information goods (or goods of electronic material or digitized content,
such as software, or e-books); and, for information goods, receiving products over an electronic
network.

It is the second largest and the earliest form of e-commerce. Its origins can be traced to online
retailing (or e-tailing).13 Thus, the more common B2C business models are the online retailing
companies such as Amazon.com, Drugstore.com, Beyond.com, Barnes and Noble and
ToysRus. Other B2C examples involving information goods are E-Trade and Travelocity.

The more common applications of this type of e-commerce are in the areas of purchasing
products and information, and personal finance management, which pertains to the management
of personal investments and finances with the use of online banking tools.

What is B2G e-commerce?

Business-to-government e-commerce or B2G is generally defined as commerce between

companies and the public sector. It refers to the use of the Internet for public procurement,
licensing procedures, and other government-related operations. This kind of e-commerce has
two features: first, the public sector assumes a pilot/leading role in establishing e-commerce;
and second, it is assumed that the public sector has the greatest need for making its
procurement system more effective.

Web-based purchasing policies increase the transparency of the procurement process (and
reduces the risk of irregularities). To date, however, the size of the B2G ecommerce market as
a component of total e-commerce is insignificant, as government e-procurement systems
remain undeveloped.

What is C2C e-commerce?

Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals

or consumers. This type of e-commerce is characterized by the growth of electronic
marketplaces and online auctions, particularly in vertical industries where firms/businesses
can bid for what they want from among multiple suppliers. It perhaps has the greatest
potential for developing new markets.

This type of e-commerce comes in at least three forms:

●auctions facilitated at a portal, such as eBay, which allows online real-time bidding on items
being sold in the Web.

● peer-to-peer systems, such as the Napster model (a protocol for sharing files between users
used by chat forums similar to IRC) and other file exchange and later money exchange
models.

● classified ads at portal sites such as Excite Classifieds and eWanted (an interactive, online
marketplace where buyers and sellers can negotiate and which features “Buyer Leads & Want
Ads.

Consumer-to-business (C2B) transactions involve reverse auctions, which empower the

consumer to drive transactions. A concrete example of this when competing airlines gives a
traveler best travel and ticket offers in response to the traveler’s post that she wants to fly
from New York to San Francisco.
There is little information on the relative size of global C2C e-commerce. However, C2C
figures of popular C2C sites such as eBay and Napster indicate that this market is quite large.
These sites produce millions of dollars in sales every day.

What forces are fueling e-commerce?

There are at least three major forces fuelling e-commerce: economic forces, marketing and
customer interaction forces, and technology, particularly multimedia convergence.

1. Economic forces. One of the most evident benefits of e-commerce is economic efficiency
resulting from the reduction in communications costs, low-cost technological infrastructure,
speedier and more economic electronic transactions with suppliers, lower global information
sharing and advertising costs, and cheaper customer service alternatives.

2. Market forces ; Corporations are encouraged to use e-commerce in marketing and

promotion to capture international markets, both big and small. The Internet is likewise used
as a medium for enhanced customer service and support. It is a lot easier for companies to
provide their target consumers with more detailed productand service information using the
Internet.

3.Technology forces : The development of ICT is a key factor in the growth of ecommerce.
For instance, technological advances in digitizing content, compression and the promotion of
open systems technology have paved the way for the convergence of communication services
into one single platform. This in turn has made communication more efficient, faster, easier,
and more economical as the need to set up separate networks for telephone services, television
broadcast, cable television, and Internet access is eliminated. From the standpoint of
firms/businesses and consumers, having only one information provider means lower
communications costs.

What are the components of a typical successful e-commerce transaction loop?

E-commerce does not refer merely to a firm putting up a Web site for the purpose of selling
goods to buyers over the Internet. For e-commerce to be a competitive alternative to
traditional commercial transactions and for a firm to maximize the benefits of e-commerce, a
number of technical as well as enabling issues have to be considered. A typical e-commerce
transaction loop involves the following major players and corresponding requisites:
The Seller should have the following components:

● A corporate Web site with e-commerce capabilities (e.g., a secure transaction server).

● A corporate intranet so that orders are processed in an efficient manner.

● IT-literate employees to manage the information flows and maintain the e-commerce
system.

Transaction partners include:

● Banking institutions that offer transaction clearing services (e.g., processing credit card
payments and electronic fund transfers.

● National and international freight companies to enable the movement of physical goods
within, around and out of the country. For business-to-consumer transactions, the system must
offer a means for cost-efficient transport of small packages (such that purchasing books over
the Internet, for example, is not prohibitively more expensive than buying from a local store).

● Authentication authority that serves as a trusted third party to ensure the integrity and security
of transactions.

Consumers (in a business-to-consumer transaction) who:

● Form a critical mass of the population with access to the Internet and disposable income
enabling widespread use of credit cards; and

● Possess a mindset for purchasing goods over the Internet rather than by physically inspecting
items.

How is the Internet relevant to e-commerce?

The Internet allows people from all over the world to get connected inexpensively and reliably.
As a technical infrastructure, it is a global collection of networks, connected to share
information using a common set of protocols.23 Also, as a vast network of people and
information the Internet is an enabler for e-commerce as it allows businesses to showcase and
sell their products and services online and gives potential customers, prospects, and business
partners access to information about these businesses and their products and services that would
lead to purchase.

Before the Internet was utilized for commercial purposes, companies used private networks-
such as the EDI or Electronic Data Interchange-to transact business with each other. That was
the early form of e-commerce. However, installing and maintaining private networks was very
expensive. With the Internet, e-commerce spread rapidly because of the lower costs involved
and because the Internet is based on open standards.

E-COMMERCE APPLICATIONS

Various applications of e-commerce are continually affecting trends and prospects for business
over the Internet, including e-banking, e-tailing and online publishing/online retailing..
A more developed and mature e-banking environment plays an important role in ecommerce
by encouraging a shift from traditional modes of payment (i.e., cash, checks or any form of
paper-based legal tender) to electronic alternatives (such as epayment systems), thereby closing
the e-commerce loop

What are the existing practices in developing countries with respect to buying and
paying online?
In most developing countries, the payment schemes available for online transactions are the
following:
1. Traditional Payment Methods :
● Cash-on-delivery. Many online transactions only involve submitting purchase orders online.
Payment is by cash upon the delivery of the physical goods.
● Bank payments. After ordering goods online, payment is made by depositing cash into the
bank account of the company from which the goods were ordered.
Delivery is likewise done the conventional way.

2. Electronic Payment Methods :

● Innovations affecting consumers, include credit and debit cards, automated teller machines
(ATMs), stored value cards, and e-banking.
● Innovations enabling online commerce are e-cash, e-checks, smart cards, and encrypted
credit cards. These payment methods are not too popular in developing countries. They are
employed by a few large companies in specific secured channels on a transaction basis.
● Innovations affecting companies pertain to payment mechanisms that banks provide their
clients, including inter-bank transfers through automated clearing houses allowing payment
by direct deposit.

What is an electronic payment system? Why is it important?

An electronic payment system (EPS) is a system of financial exchange between
buyers and sellers in the online environment that is facilitated by a digital financial instrument
(such as encrypted credit card numbers, electronic checks, or digital cash) backed by a bank, an
intermediary, or by legal tender.
EPS plays an important role in e-commerce because it closes the e-commerce loop. In
developing countries, the underdeveloped electronic payments system is a serious impediment
to the growth of e-commerce. In these countries, entrepreneurs are not able to accept credit card
payments over the Internet due to legal and business concerns. The primary issue is transaction
security.
The absence or inadequacy of legal infrastructures governing the operation of epayments is also
a concern. Hence, banks with e-banking operations employ service agreements between
themselves and their clients.
The relatively undeveloped credit card industry in many developing countries is also a barrier
to e-commerce. Only a small segment of the population can buy goods and services over the
Internet due to the small credit card market base. There is also the problem of the requirement
of “explicit consent” (i.e., a signature) by a card owner before a transaction is considered valid-
a requirement that does not exist in the U.S. and in other developed countries

What is e-banking?

E-banking includes familiar and relatively mature electronically-based products in developing

markets, such as telephone banking, credit cards, ATMs, and direct deposit. It also includes
electronic bill payments and products mostly in the developing stage, including stored-value
cards (e.g., smart cards/smart money) and Internetbased stored value products.
What is the status of e-banking in developing countries?
E-banking in developing countries is in the early stages of development. Most banking in
developing countries is still done the conventional way. However, there is an increasing
growth of online banking, indicating a promising future for online banking in these countries.
Below is a broad picture of e-banking in three ASEAN countries.

The Philippine Experience

In the Philippines, Citibank, Bank of the Philippine Islands (BPI), Philippine National Bank,
and other large banks pioneered e-banking in the early 1980s. Interbank networks in the country
like Megalink, Bancnet, and BPI Expressnet were among the earliest and biggest starters of
ATM (Automated Teller Machines) technology.
BPI launched its BPI Express Online in January 2000. The most common online financial
services include deposits, fund transfers, applications for new accounts, Stop Payment on issued
checks, housing and auto loans, credit cards, and remittances.

The Singapore Experience

In Singapore, more than 28% of Internet users visited e-banking sites in May 2001.36
Research by NetValue (an Internet measurement company) shows that while the number of
people engaging in online banking in Singapore has increased, the average time spent at sites
decreased by approximately four minutes from March 2001 to May 2001. This decline can be
attributed to the fact that more visitors spend time completing transactions, which take less
time than browsing different sites. According to the survey, two out of three visitors make a
transaction.All major banks in Singapore have an Internet presence. They offer a wide range
of products directly to consumers through proprietary Internet sites. These banks have shifted
from an initial focus on retail-banking to SME and corporate banking products and services.
Among the products offered are:
● Fund transfer and payment systems.
● Integrated B2B e-commerce product, involving product selection, purchas order, invoice
generation and payment.
● Securities placement and underwriting and capital market activities.
● Securities trading.
● Retail banking.

The Malaysian Experience

E-banking in Malaysia emerged in 1981 with the introduction of ATMs. This was
followed by tele-banking in the early 1990s where telecommunications devices were connected
to an automated system through the use of Automated Voice Response (AVR) technology. Then
came PC banking or desktop banking using proprietary software, which was more popular
among corporate customers than retail customers. On June 1, 2000, the Malaysian Bank
formally allowed local commercial banks to offer Internet banking services. On June 15, 2000,
Maybank (www.maybank2U.com), one of the largest banks in Malaysia, launched the
country’s first Internet banking services. The bank employs 128-bit encryption technology to
secure its transactions. Other local banks in Malaysia offering e-banking services are Southern
Bank, Hong Leong Bank, HSBC Bank, Multi-Purpose Bank, Phileo Allied Bank and RHB
Bank. Banks that offer WAP or Mobile banking are OCBC Bank, Phileo Allied Bank and
United Overseas Bank. The most common e-banking services include banking inquiry
functions, bill payments, credit card payments, fund transfers, share investing, insurance, travel,
electronic shopping, and other basic banking services.

What market factors, obstacles, problems and issues are affecting the growth of
ebanking in developing countries?

Human tellers and automated teller machines continue to be the banking channels of choice in
developing countries. Only a small number of banks employ Internet banking. Among the
middle- and high-income people in Asia questioned in a McKinsey survey, only 2.6% reported
banking over the Internet in 2000. In India, Indonesia, and Thailand, the figure was as low as
1%; in Singapore and South Korea, it ranged from 5% to 6%. In general, Internet banking
accounted for less than 0.1% of these customers’ banking transactions, as it did in 1999. The
Internet is more commonly used for opening new accounts but the numbers are negligible as
less than 0.3% of respondents used it for that purpose, except in China and the Philippines
where the figures climbed to 0.7 and 1.0%, respectively.
This slow uptake cannot be attributed to limited access to the Internet since 42% of respondents
said they had access to computers and 7% said they had access to
the Internet. The chief obstacle in Asia and throughout emerging markets is security. This is the
main reason for not opening online banking or investment accounts. Apparently, there is also a
preference for personal contact with banks.
Access to high-quality products is also a concern. Most Asian banks are in the early stages of
Internet banking services, and many of the services are very basic.

What are the trends and prospects for e-banking in these countries?
There is a potential for increased uptake of e-banking in Asia. Respondents of the McKinsey
survey gave the following indications:
1. Lead users: 38% of respondents indicated their intention to open an online account in the
near future. These lead users undertake one-third more transactions a month than do other
users, and they tend to employ all banking channels more often.
2. Followers: An additional 20% showed an inclination to eventually open an
online account, if their primary institution were to offer it and if there would be no
additional bank charges.
3. Rejecters: 42% (compared to the aggregate figure of 58% for lead users and
followers) indicated no interest in or an aversion to Internet banking. It is important to note
that these respondents also preferred consolidation and simplicity, i.e., owning fewer banking
products and dealing with fewer financial institutions.
Less than 13% of the lead users and followers indicated some interest in conducting complex
activities over the Internet, such as trading securities or applying for insurance, credit cards,
and loans. About a third of lead users and followers showed an inclination to undertake only
the basic banking functions, like ascertaining account balances and transferring money
between accounts, over the Internet.
 IMRaD

What is an IMRaD report?

“IMRaD” format refers to a paper that is structured by four main sections: Introduction,
Methods, Results, and Discussion. This format is often used for lab reports as well as for
reporting any planned, systematic research in the social sciences, natural sciences, or
engineering and computer sciences.

1. Introduction

a) Introduce the problem underlying your research question.

b) Explain the significance. c) Review of background or known information on your topic

d) Provide a paragraph that covers the research questions and logically presents hypotheses.

e) Refer to the CARS Model here for further guidance.

f) Literature reviews are often integrated as a section of the introduction before the methods

2. Methods

a) Participants and Design

i) Participants: How many?

Did you do a power analysis?

What were the ages, genders, and ethnicities (if applicable)?

ii) Design: What were your independent variables and dependent variables? How was the
experiment counterbalanced (if applicable)?

b) Materials

i) What were your stimuli?

ii) Explain what materials were used to measure your independent and dependent variables.
Cite if necessary, but mostly if you need to give credit to those who assembled to scale/stimuli
or to justify choices that might raise a red flag for reviewers.
iii) There should be little to no overlap between the Materials and Procedure sections.

c) Procedure

i) What did you do? This should be written in a clear and specific way, so that a reader could
do at least a partial replication of your work after reading this section.

ii) Cite where needed, such as when decisions about time or procedure need to be
corroborated by previously published research.

3. Results

a) Describe what you found out from your research, but this is not the place to discuss the
implications of your findings.

b) Start by discussing data cleaning (if necessary).

c) This is where you present the analysis. It should be clear why you used your analytical
approach.

d) If you analyze the data with more than one technique, it should be clear how each of those
approaches supports your initial RQs/hypotheses and the justification for the chosen order of
analyses.

4. Discussion

a) Explain the significance of your findings.

b) Describe how they support your thesis.

c) Discuss limitations of your research—suggest what future research would address those
limitations (but keep any studies you plan right now as hold-back info).

d) End with a paragraph that highlights the importance/contributions of your research. The last
thing the reader should
 Be an Entrepreneur

You’ve entered the workforce. You’ve probably been there for quite some time now and you’ve

learned a few things. YOU DON’T LIKE IT! You don’t like working for a corporation with no

soul. You don’t like being invisible and unappreciated. You don’t like not making a difference

in the world. And you don’t like that you’re going down the same path as your parents. You

already know the end result… laid off, fired, no retirement, no benefits, nosecurity and certainly

no comfort..

Remember, you wanted to make the world a better place. You are finding that you are just

making the world more of the same… and the same isn’t good.

So what is a person to do? Should a person rally the corporation they work at, get the CEO to

change course? Should the person change the CEO’s priorities to caring about theemployees

and the world more than the bottom line and shareholders? Or…Should a person take control

of their own life? Should the person change the world byfirst changing themselves? Improve

the world by improving themselves? Should a person realize that if they want to work for a

company that cares about the world and shares thesame values as themselves that they might

have to be the one to build that company?Should a person take on the responsibility of being

self-made? Let’s explore that possibility.Opportunity is everywhere. Opportunity is all the time.

It does not disappear in thedifficult times, in fact its greater. As the world offers more problems

to solve, the person with the ability, knowledge or creativity to solve problems will see more

opportunities than ever. In addition, with the creation and emergence of the digital world, a

single person armed with the power of a laptop can become a force overnight. Opportunity is

everywhere and the ability to capitalize on these opportunities exists through the laptop, tablets

and smart phones.

So there is opportunity and ability. All you need now is an idea. Well, an idea and the courage

to act on it.
Can Anyone Be an Entrepreneur?

anyone can be an entrepreneur. Being an entrepreneur is not that special. He did not want the

idea of being an entrepreneur to go to our heads. He did not want us looking down on anyone

or thinking we were better than other people if we became successful entrepreneurs.

Anyone can be an entrepreneur. Your neighborhood babysitter is an entrepreneur. So was Henry

Ford, founder of the Ford Motor Company. Anyone with a little initiative can be an

entrepreneur. So don’t think entrepreneurs are special or better than other people. Your job is

to decide which entrepreneur you most want to be like— the babysitter or Henry Ford? They

both provide a valuable product or service. Both are important to their customers. Yet they

operate in very different spectrums, different bandwidths of entrepreneurship. It’s like the

difference between sandlot football, high school football, college football, and professional

football

The most important job of an entrepreneur is to design the business before there is a business.

lesson #1: “A successful business is created before there is a

business.”

Designing Your Business

Most new entrepreneurs get excited about a new product or an opportunity they think will make

them rich. Unfortunately, many of them focus on the product or opportunity rather than invest

the time designing the business around the product or opportunity. Before quitting your job, it

might be a good idea to study the lives of entrepreneurs and the different types of businesses

they created. You might also want to find a mentor who has been an entrepreneur. All too often,
people ask business advice from people who have business experience as an employee, but not

as an entrepreneur.

Explaining the B-I Triangle

The B-I Triangle was very important because it gave structure to your ideas. There are many

people with great ideas but few people with great fortunes. The B-I Triangle has the power to

turn ordinary ideas into great fortunes. The B-I Triangle is the guide to taking an idea and

creating an asset.” It represents the knowledge required to be successful on the B and I side of

the CASHFLOW Quadrant.