IT Application Tools

in Business
Prof. Roden Magat
Internet of Things (IoT)
IoT is a network of physical devices
that are connected, embedded, or
equipped with sensors, electronics,
and other transfer mechanisms that
enable them to connect,
communicate, and exchange data
and resources whether through
wired or wireless networks.
Common IoT Applications
The following are applications of the IoT currently making waves in the market:

1. Smart Home devices – Theses are devices or appliances installed in modern homes which can often be remotely
controlled by the owner using a mobile app. These IoT-based devices can also operate together with other home
devices. Example: washing machines, refrigerators, televisions, air conditioning units, and lighting devices.

2. Smart Home Security devices – are also gaining more attention in the market. Examples: indoor or outdoor security
cameras, doorbell cameras, smart door locks, flood lights which could all be connected to and controlled by a
smartphone of the homeowner.

3. Wearable technology – These are electronic devices that can be worn as accessories, implanted on user’s body, or
embedded in clothing. Among the early devices that caught on with customers were fitness devices, followed by
wristwatches with screens and mobile applications, Bluetooth headsets, smartwatches, virtual and augmented reality
headsets and other personal devices that receive data from Wi-Fi Networks.
Common IoT Applications
The following are applications of the IoT currently making waves in the market (continued):

4. IoT healthcare devices – These are medical devices that are made more capable through their connectivity. These
devices gather patient data and receive inputs from medical practitioners. When working together, these devices
communicate with each other and make intelligent decisions such as alerting healthcare providers when a patient has
reached a condition that needs immediate medical attention. Examples: devices are smartwatches that monitor heart
rate, control diabetes, and detect seizures, insulin pens, smart glucose monitors that track blood sugar levels; and
ingestible sensors which travel through a patients gut and send data such as pH levels and temperature to wearable
device that sends data to an app, which helps the doctors monitor whether or not the patient has taken his/ her medicine.

5. Connected cars – These are vehicles with access to the Internet or the cloud. These automobiles allow devices, both
inside and outside, to communicate with each other. These cars may contain sensors and computers inside, whereas
devices outside the cars may be part of houses, infrastructure and other vehicles.
 Common IoT Applications
The following are applications of the IoT currently making waves in the market (continued):

6. Smart transportation – It relies on data sent between vehicles and different transportation infrastructures such as
railways, buses, and airports which are collected and communicated via satellite technology in order to provide real time
information. Among the shared information are weather and traffic conditions, location of vehicles and available parking
spaces. Examples of smart transportation are intelligent transport systems smart parking sensors and advanced traffic
managements systems.
 IoT in Business
Through the kind of connectivity that the IoT offers, IoT applications and devices have also found their way into the retail
industry, transforming and innovating the ways through which organizations do their business.

Example:

● Radio frequency identification (RFID)

● Inventory Tracking Chips
● Smart Stores
● Digital Smart Kiosks
● IoT powered supply chain
● Wi-Fi Tracking systems
● Mobile apps intended for tracking financial conditions and manufacturing activities
 IoT in Business
The following are also some of the ways to leverage the potential of the IoT in the retails industry:

● Equipment maintenance prognostics – With IoT applications, equipment maintenance is easier to perform because these
applications can predict future failure or detect equipment issues. An IoT-enabled retail equipment is capable of
providing real-time monitoring and can notify users in case of probable malfunction

● Shelf and warehouse management – Smart shelving is achieved with the use of weight and pressure sensitive shelves
integrated with RFID and barcode scanning for goods. Modern warehouses use RFID technology or barcode scanning to
allow for next-generation tracking instead of manually tracking goods. With IoT all behaviors such as receiving,
shelving, picking and releasing of goods from the warehouse can be recorded and the inventory updated in real-time.

● Warehouse automation and robotics – Robotic devices integrated with IoT technology and self-organizing pallets do
more than just assemble orders and facilitate organization; they also allow employees to focus on their task of handling
customer. In the future, with the help of the IoT, warehouses could become open spaces that run based on rea-time
customer demand.
 IoT in Business
The following are also some of the ways to leverage the potential of the IoT in the retails industry (continued):

● Smart store – In the past, business owners would run expensive surveys to understand and determine if stores were
responsive to customer needs and if their customer service is acceptable.

○ Real-time shopping – A smart store allows customer to view product details and purchase goods
at their convenience using their mobile phones.

○ Customer feedback – With a smart store, it is easier to collect feedback from customers about
their shopping experience right after their purchase through their mobile devices. In return,
businesses could provide more efficient and accurate customer service.

○ Data analytics – Data analytics is also instrumental for business in terms of improving
customers shopping experience by coming up with solutions directly concerning consumer
needs.
Business Intelligence
It refers to the processes,
technologies and tools required to
convert data in to information,
information into knowledge and
knowledge into plans that derive
profitable business actions. It
encompasses data warehousing,
business analytics and knowledge
management.
In other words, it allows business
organizations to use and manage
data strategically in response to
challenges and issues that would
drive profitable business actions.
 BI Applications in an Organization or Enterprise
BI can be applied in numerous business organizations for various purposes as follows.

1. Analytics – It refers to a program that builds quantitative processes for organizations or businesses to arrive at the most
favorable decisions and perform business knowledge discovery.

2. Enterprise reporting – It refers to a program that builds infrastructure specifically for strategic reporting to support the
strategic management of a business. It may involve executive information systems, online analytical processing
(OLAP) and data visualization

3. Measurement – It refers to a program that creates performance metrics and performs benchmarking that aid business
leaders in determining how to progress toward certain business goals.

4. Collaboration platform – It refers to a program that initiates and obtains inputs from various areas both from inside and
outside of business to work and collaborate with each other by data sharing or electronic data interchange.

5. Knowledge management – It refers to a program that makes a business data-driven. It uses strategies and practices to
identify, create, build, distribute and adopt true business knowledge.
E-Business
The Internet (international network)
is a large network used by business
organizations to establish e-business
and e-commerce websites.

The WWW provides unrestricted

access to and publishing of
information over the Internet using
web browsers.
E-Business
E-business refers to any online-run
business. It also considered as a
technique used by business
organizations to improve business
strategy and be more productive and
profitable through the use of IT.
 Computer Networks
A computer network refers to the connection between computers to share information and resources.
The different types of computer networks are as follows.

1. Personal Area Network (PAN) – This refers to a computer network that is used to allow communication between
devices close to each other. Example: printers, scanner, barcode scanners, personal digital assistants and game
consoles.

2. Local Area Network (LAN) – This is one of the most commonly used computer networks that cover a small area such
as a house, room, or building.

3. Campus Area Network (CAN) – This type of computer network is specifically used for academic institutions where
LANs are interconnected in a limited geographical area.

4. Metropolitan Area Network (MAN) – This type of computer network is within the area of a town or city where it
connects two or more LANs or CANs.

5. Wide Area Network (WAN) – This type of computer network is used within regional or national areas.

6. International Network (Internet) – This is considered as the largest computer network that allows users to access
without restrictions.
Networks used for E-business
1. Intranet – It refers to the internal network of a business organization meaning only authorized users can access the
network through the internet. It uses web browsers and file transfer applications, which are under the supervision and
control of the business organizations.

2. Extranet – It refers to the network of a business organization has a limited scope, giving access only to trusted entities.
Example: a business organization may build an extranet by letting its customers gain access to a portion of their
intranet.

3. Internet – it is the largest network consisting of interconnected government, private, public, academic and business
entities linked by various technologies ranging from electronic and wireless to fiber optic. This connection is offered
and managed by service providers.
E-Business Opportunities
1. Reach – It refers to the potential number of local and international customer of a business organization that can interact
with each tother through the use of internet. (refers to the extent and magnitude of an online platform's ability to
connect with a large audience or customer base). Examples: Social media: Facebook, X and Instagram.

2. Richness – It refers to the information that business organizations can share to their consumers. (refers to the depth and
quality of interactions that an online platform or communication medium can provide). This may include detailed
information about a certain product which includes the product name, description, price and availability. Example: Live
chat support on a website provides a richness in customer service by allowing real-time interactions between customers
and support agents. Webinars or virtual events offer a rich communication experience, allowing businesses to deliver
detailed information and engage with participants.

3. Affiliation – It refers to the effectiveness of the linkages between business organizations. In terms of online
partnerships, the business organizations with more linkages to other organizations are able to gain more influence and
reach. Example: Google, Yahoo and eBay have tremendously and successfully formed partnerships that provide them
diverse information.
Risks and Barriers to E-Business Adoption
1. Security Risks – Data breaches and Cyber Attacks

2. Technology Risks – System Failures and Dependency on Third party providers.

3. Financial Risk – High Costs, fluctuating operating costs.

4. Poor customer service

5. Slow connection

6. Privacy and data protections

7. Problems with online orders.

E-Commerce
Electronic commerce, also known
as e-commerce, refers to
commercial transactions executed
online using the internet.

E-commerce is displayed through

technologies such as:
● Automated data collection systems
● Electronic funds transfer
● Electronic data interchange
● Internet marketing
● Inventory systems
● Online transaction processing
● Mobile Commerce
● Supply chain management
Buy-side and Sell-Side e-commerce
The difference between buy-side e-commerce and sell-side e-commerce is that
the former focuses on suppliers, and the latter focuses on the consumers or
customers.

● Buy-side e-commerce is about the procurement process, where businesses

purchase goods and services from suppliers electronically.
● Sell-side e-commerce is the more traditional form, involving businesses selling
products or services directly to end consumers or other businesses.
Advantages of E-Commerce
● Efficient transactions done anytime and anywhere

● Quick electronic funds transfer

● Convenient buying or selling from home or place of business

● Reduced cost and time of order processing

● Simpler, faster, and cheaper supply chain management

● Quick reaching of target customers for small and medium sized enterprises

● User-friendly ordering systems

Disdvantages of E-Commerce
● Lack of privacy of e-transactions

● Unsecured use of the internet (presence of viruses, hackers, and so on)

● Depersonalized shopping
Threats of E-Commerce
● Servers containing important files and customer information being stolen

● Impostors duplicating e-commerce sites to steal customers money

● Hackers attempting to steal customer information or mess up the site

● Authorized users with hidden motives attacking e-commerce systems and/or

selling information to competitors
Features of E-commerce
1. Ubiquity – This means that the marketable transaction or activity is accessible
at anytime, anywhere in the world.

2. Global Reach and Security – Global reach also known as worldwide access, is
the maximum number of possible consumers a business can reach. Security is
essential when working globally; therefore, customer information and privacy
must be protected and ensured when using e-commerce platform.

3. Universal Standards – This refers to a website that can be operated on a

standard platform which follows identified methods and systems. This
employs easy to use e-commerce website with a simple design and content
Features of E-commerce
4. Richness – This refers to the volume of the content of the website and the way it is used
by consumers. Ensuring a sites richness, by providing a combination of messages and means
to improve customer experience, is essential for business. Videos, pictures, texts, sounds and
links can be used to improve customer experience.

5. Interactivity – This refers to the relationship between a consumer and an e-commerce

website. It provides face-to-face customer meetings when conducting business transactions.
Increase interactivity allows for the establishment of an emotional connection between
consumers and the business, thus helping build brand trust and loyalty.

6. Information Density – This refers to the amount of products that can fit on a computer
screen.
Business Models of E-Commerce
1. Business-to-Business (B2B) – is a marketing type of business wherein businesses
provide products or services to other businesses for the production of goods, business
operations, or reselling of products. Example: is a wholesaler selling products to retailer.

Examples of B2B websites:

● Philippines Companies (Filipino Business Directory) – launched in 2007 by EACOMM
Corporation. Its objective is to help people get answers for daily life questions such as list of all
coffee shops in Manila or list of schools in Intramuros.

● Pinoy Listing – free listing of Filipino businesses ranging from markets and restaurants to
embassies and organizations including businesses that deliver products and services to homes.

● Yalwa – (2006) it is a global website that provides a descriptive directory of businesses of varying
industries. yalwa.com(international) and yalwa.ph(local)
Business Models of E-Commerce
2. Business-to-Consumer (B2C) – type of commercial transaction in which businesses sell
products or services directly to consumers.

B2C is the most popular form of e-commerce. It is the second largest model of e-commerce.
Originated in e-retail where in a customer visits a website and purchases products online. It
reduces transaction costs, increases the number of consumers, and allows consumers to find
the most competitive price of a certain product. Most Popular B2C model is Amazon.com

Top e-commerce website in the Philippines

● Lazada
● Shopee
● Zalora
● Metro deal
● Globe Online Shop
● eBay
Business Models of E-Commerce

3. Consumer-to-Consumer (C2C) – is used similarly as the classified advertising section of a

local newspaper or an auction page. Is a convenient way for consumers to buy and sell
goods without physically going to store. Also stands for Customer-to-Customer.

4. Business-to-Government (B2G) – is a business model that refers to business that sells

products, services or information to governments and/or government agencies. This model
provides a means for businesses to bid on government projects or products that are needed
for their organizations, such as Land transportation Office (LTO) with their license cards
and plate numbers. Commissions on Elections (COMELEC) with their PCOS machines
used during elections.
Business Models of E-Commerce
5. Government-to-Business(G2B) – This business model refers to government agencies that
provide services or information to business organization. A B2G model website is used by
government to approach and communicate with business organizations. Examples of G2B
model websites are those that support auctions, as well as bender and application
submissions.

Other Examples:
● Online information and advisory services
● Government contracting
● Digital procurement marketplaces
● Business licenses, permits, and regulation updates
● Electronic auctions
● Tax, social insurance payments, and reporting
● Electronic forms
● Online application submission functionalities
● Virtual business dispute resolution
● Online startup registering
Business Models of E-Commerce
6. Government-to-Citizen (G2C) – This model is being used by government to approach and
communicate with citizens in general. The type of website this model implements provides
services such as birth registration, the acquisition of marriage and death certificates from
Philippine Statistics Authority (PSA), or car registration from the Land Transportation
Office (LTO), and others.

The main purpose of the G2C model is to reduce the average time needed to fulfilling
citizens requests for various government services.
E-Commerce Security Systems
The following are indispensable conditions for safe e-payments and/or transactions.

1. Auditability – data should be documented in such as way that it can be audited for real
requirements.
2. Authenticity – there should be procedures to authenticate a user before giving him/her access to the
required information.
3. Availability – information must be available anytime and anywhere, and must be bound by a time
limit.
4. Confidentiality – information should be kept and not be accessible by an unauthorized user.
5. Encryption – information must be secured through the encryption and decryption of an authorized
user.
6. Integrity – information must not be modified during its transmission over a network. Honesty and
strong moral principles must be applied.
7. Non-reputation – there should be assurance that someone cannot rebuff on something. It is to certify
that a person involved in the contract or in communication cannot refute the authenticity of their
signature on document.
M-Commerce
Mobile Commerce refers to the use
of wireless handheld devices, such
as mobile phones to conduct
business-related transactions online.
M-Commerce transactions conquer
online business transactions, which
include the purchasing and selling
of a wide range of products and
services, online banking, bills
payment, and information delivery.
M-Commerce
The following are benefits of mobile technologies:

1. Ubiquity – They allow users to access anytime anywhere.

2. Reachability – Users are easy to reach.
3. Convenience – There is no need for users to have fixed-line connections.
4. Security – They ensure that user information is free from the risk of loss or
theft through authentication.
5. Privacy – The degree of privacy is higher compared to desktop PC.
6. Availability – Users can freely access them at any time of the day.
M-Commerce
Top M-Commerce Applications in the Philippines.

1. Lazada
2. Shopee
3. Zalora
4. Amazon
5. AliExpress
6. BeautyMnl
7. eBay
8. Sephora
9. Alibaba
10. Althea
Guidelines and Laws Governing E-Commerce
The following are challenges that may interfere with starting an online business:
1. Taxes – Every state and/or country has different rules and laws regarding
taxes. Therefore, conducting research and understanding your target market
are necessary to avoid problems about taxation.
2. Trademarks, Patents and Copyrights – There are misconceptions about
definitions of the three words.

● Trademarks – It is a distinguishing word, phrase, symbol and/or design that identifies

the uniqueness of a product or service of one party from the others
● Patent – It is a property right granted by the US Patent and Trademark office to an
invention for its public disclosure for a limited period of time
● Copyright – It protects works of authorship. Such as writings, music and works of art
that have been tangibly expressed.
Guidelines and Laws Governing E-Commerce
(continued)

The following are challenges that may interfere with starting an online business:

3. Shipping Restrictions – shipping companies have different restrictions on

products or goods. The following are products typically restricted for shipping:

● Air bags
● Animals
● Perishable materials, such as fresh fruits and vegetables and alcohol
● Hazardous materials, such as aerosols, ammunition, cigarettes, dry ice,
explosives, nail polish, perfumes and poisons.

some companies allow the shipment of the items above but require additional fees
and documents.
Guidelines and Laws Governing E-Commerce
(continued)

The following are challenges that may interfere with starting an online business:

4. Inventory – There are certain rules and prohibitions that align with lease, deed,
or zoning codes when it comes to stock inventory for businesses.

5. Business Restrictions – different type of insurance exist for small businesses

such as general, product, professional and commercial liability insurances and
home-based insurance. The insurance depends on the location and nature of a
business. Example: the product liability insurance is meant for companies that are
liable for the safety of the products they manufacture, wholesale, distribyte and
retail.
Guidelines and Laws Governing E-Commerce
(continued)

The following are challenges that may interfere with starting an online business:

6. Licenses and Permits – A license is needed to sell products or services.

Licenses are dependent on the location of a business and are distributed by a local
licensing department.

7. Payment Card Industry (PCI) Compliance – PCI serves as protection for online
businesses, especially software-as-a-service(SaaS) e-commerce platforms from
problems such as data theft.
Guidelines and Laws Governing E-Commerce
The following are some of the relevant laws and legal requirements in the country
concerning customer security:

1. Republic Act 8792 – Electronic Commerce Act of 2000 – covers the mandates
of the Philippine Government in terms of executing online transactions
locally or internationally.

2. Republic Act 10173 – Data Privacy Act of 2012 – This prohibits the
communication and sharing of written, electronic and recorded information
by an individual to another. Information can be from documents, e-books,
electronic data messages, and so on.
Guidelines and Laws Governing E-Commerce
The following are some of the relevant laws and legal requirements in the country
concerning customer security:

3. Consumer Protection Regulation – Transaction through E-Commerce – The Department

of Trade and Industry (DTI), with the participation of other government agencies, issued a
consumer protection regulation that provides protection to consumers when buying and
selling products and services through the use of e-commerce.

4. Tax Guidelines for E-Commerce Transactions in the Philippines – On August 5, 2013, the
BIR issued Revenue Memo Circular No.55-2013, Reiterating Taxpayers Obligations in
Relation to Online Business Transactions. The purpose is to remind individuals and business
organizations to handle sales and taxes properly when conducting online transactions.