Unit 12
Applicability of ICT to Business
Digital Economy
• Digital Economy refers to an economy that is
based on digital technologies.
• The digital economy is also sometimes called the
Internet Economy, the New
• Economy, or Web Economy.
• Economies have evolved with new inventions
throughout the history of mankind.
• The Latest evolvement is because of the Internet.
• Internet is Global. Which makes it ideal for
• The Cloud concepts provide the infrastructure for
the digital economy.
• Connectivity Cloud
• Resource Cloud
• Social Cloud
New Business methods in digital economy
• Reverse Auctions
• Group Purchasing
• E-Marketplace
Reverse Auctions
In a reverse auction, the buyer puts up a request
for a required good or service. Sellers then place
bids for the amount they are willing to be paid for
the good or service, and at the end of the auction
the seller with the lowest amount wins.
Reverse auctions gained popularity with the
emergence of Internet-based online auction tools.
Group Purchasing
• Group purchasing is a process that allows several
individuals or businesses to come together for the
purpose of purchasing various types of goods and
services at discounted rates.
• Group buying websites have emerged as a major
role in online shopping business. Typically, these
websites feature a "deal of the day", with the deal
starting once a set number of people agree to buy
the product or service.
Eg:
www.grouponworks.com
E-Marketplace
• An e-marketplace is an internet location owned
by a company or consortium which allows other
companies or individuals to get new suppliers or
buyers for their products as well as develop
trading networks which makes negotiating,
settlement and delivery easier and more efficient.
• Eg: eBay, NASDAQ
Business Models
Types of Business Models
• Pure Brick
• Brick and Click
• Pure Click
Pure Brick
• Companies that have a physical presence
(A physical store) and offer face-to-face consumer
experiences.
• Eg: Cargills Food city
Brick and Click
• A company which integrates both online and
physical presences.
• It may offer a number of products or services
online, as well as face to face with the customer.
• Eg: Pizza hut, Sampath Bank
Pure Click
• Both parties will not have a physical presence.
• Eg: ebay
ICT in various business functions
• Accounting
• Human Resource
• Production
• Marketing and Sales
• Supply chain Management
• Business Communication
Accounting & IT
• Most firms have accounting software packages to
help produce statutory accounts and reports for
bankers and management, as well as to help with
the day-to-day control of its finances.
• The main components of an accounting system
would include modules such as:
Invoicing
Bought ledger (trade creditors)
Sales ledger (trade debtors)
Bank reconciliation
Cash flow forecasts
Producing draft accounts and trial balances
• Eg: Sage, QuickBooks
