Chapter 2

Global E-Business and Collaboration

Components of a Business
Business: A business is an activity or organization that produces or sells goods or services to
earn profit. Example: A coffee shop that sells coffee, snacks, and drinks to customers is a
business because it provides products and earns money from selling them.

Four Basic Business Functions

1. Manufacturing and Production: This function is responsible for making the product or
providing the service. It includes activities like designing, producing, assembling, and
maintaining quality. Example: A shoe factory producing shoes—cutting leather, stitching, and
assembling shoes—is part of manufacturing and production.
2. Sales and Marketing: This function helps the business promote and sell the product. It
includes advertising, market research, pricing, and customer service. Example: A company
creating Facebook ads to promote new shoes, or a salesperson convincing customers to buy the
shoes, is doing sales and marketing.

3. Finance and Accounting: This function deals with money—managing cash, recording
transactions, budgeting, and making financial decisions. Example: An accountant preparing
monthly profit reports or a finance manager planning the budget for buying new machinery is
doing finance and accounting.
4. Human Resources (HR): HR manages the people in the business. This includes hiring
employees, training them, evaluating performance, and maintaining a good work environment.
Example: An HR manager hiring new workers for the shoe factory or arranging employee
training is doing human resources work.

Five Basic Business Components

1. Suppliers: Suppliers are the people or companies that provide raw materials or products to
a business. Example: A restaurant buying vegetables, meat, and spices from a wholesale
market—the wholesale market is the supplier.
2. Customers: Customers are the people who buy the products or services from a business.
Example: People who come to the restaurant to eat food are the customers.
3. Employees: Employees are the people who work for the business. They help run operations,
serve customers, produce goods, and manage activities. Example: Chefs, waiters, cleaners, and
managers working in the restaurant are the employees.
4. Invoices / Payments: Invoices and payments represent the financial transactions—bills,
receipts, and the money the business receives or pays. Example: When a customer pays for

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their meal and gets a bill (invoice), or when the restaurant pays the supplier for vegetables,
these are payments/invoices.

5. Products and Services: Products are physical goods, while services are actions provided to
satisfy customer needs. Example: In a restaurant: 1. The food is the product, 2. The service of
serving and preparing the food is the service

Major Features of a Business Important for Understanding

Information Systems
1. Organizational Structure: Businesses have different levels—top management, middle
management, and operational staff. Information systems must deliver the right information to
each level (e.g., reports for managers, transaction data for workers). Example: A POS system
in a shop records daily sales for staff, while managers get monthly sales reports.

2. Business Processes: These are step-by-step activities needed to complete tasks (e.g.,
ordering, manufacturing, selling). Information systems help automate, speed up, and improve
these processes. Example: An online order system automatically sends orders to the warehouse
and updates stock.

3. Culture and Policies: Each business has its own rules, values, and ways of doing things.
Information systems must fit the company’s culture—for example, whether it uses strict
approvals or flexible workflows. Example: A company that values transparency uses an IS that
shows shared dashboards for all employees.

4. Business Environment: This includes customers, competitors, suppliers, government, and

market conditions. Businesses use information systems to track changes in the environment
and make decisions. Example: A company uses IS to monitor competitor prices or customer
feedback on social media.

5. Organizational Politics: Different departments may have different goals or power struggles.
Information systems affect how information flows, so understanding politics helps avoid
conflict when implementing new systems. Example: Sales might want a simple CRM, while
finance prefers a detailed one. IS must balance both needs.

6. Management Decision Making: Managers take decisions—operational, tactical, strategic.

Information systems provide data, reports, and analytics to support good decisions. Example:
A manager uses an MIS report to decide which product to discontinue.

7. Organizational Assets (People & Technology): A business runs with people, equipment,
technology, and skills. IS must support these assets and improve their productivity. Example:
Employees use HR systems to track attendance, performance, or training.
8. Products, Services & Customers: A business exists to provide products or services.
Information systems help design, improve, deliver, and support products. Example: An e-
commerce site uses IS for online orders, product displays, and customer support.

Business Processes
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Business Processes: A business process is a logically related set of tasks that shows how a
specific business activity is done. It explains that what tasks employees perform, in what order
they perform them, on what schedule (daily, weekly, monthly).

Types of Business Processes

1. Business Processes: Logically Related Tasks: Business processes are a set of logically
connected tasks that show how specific business activities are performed. They explain what
tasks employees perform, in what order, and on what schedule. This helps a business run
smoothly and efficiently. Example: In the employee hiring process, steps like posting a job,
reviewing applications, interviewing candidates, and selecting the final employee are all part
of one business process.

2. Functional Area Processes: Some business processes belong to a specific department or

functional area of a business. These processes support the goals of that particular department
and help it operate effectively. Example: In sales and marketing, identifying potential
customers by collecting data, analyzing customer needs, and targeting the right audience is a
process tied to this department.

3. Cross-Functional Processes: Some processes require multiple departments to work

together. These are called cross-functional processes. They connect different parts of the
business to complete one task from start to finish. Example: Fulfilling a customer order
involves sales (taking the order), warehouse (checking stock), accounting (verifying payment),
and shipping (delivering the product). Since many departments are involved, this is a cross-
functional process.

Business Processes Steps

1. Order Processing: Order processing is the step-by-step activity that takes place when a
customer places an order. It includes checking product availability, confirming the order,
preparing the item, and arranging delivery. Modern information systems help automate this
entire process, making it faster and more accurate. Example: When a customer buys a product
from Daraz, the system automatically updates inventory, sends a confirmation message, and
alerts the warehouse to pack and ship the item.
2. Inventory Management: Inventory management is the process of tracking and controlling
a company’s stock—what’s available, what’s running out, and what needs to be ordered. Digital
systems help businesses avoid overstocking or running out of products. Example: A
supermarket uses barcode scanners and software to monitor stock levels. When an item is
almost finished, the system alerts the manager to reorder it.

3. Customer Relationship Management (CRM): CRM focuses on managing a company’s

interactions with customers. Businesses use CRM systems to store customer data, track
communication, and improve customer service. This helps companies understand customer
needs and build long-term relationships. Example: A mobile company (like Grameenphone)
stores customer complaints and service history, allowing customer care agents to solve
problems faster.

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4. Supply Chain Management: Supply chain management covers the flow of goods from
suppliers → manufacturers → warehouses → retailers → customers. Information systems help
coordinate each stage, reducing delays and improving efficiency. Example: A clothing brand
tracks its shipment from the fabric supplier to the factory, then to the warehouse, and finally to
the retail shop.

5. Human Resource Management (HRM): HRM deals with hiring employees, training them,
tracking attendance, and evaluating performance. HR systems automate these tasks and help
managers make better decisions. Example: A company uses an HR software where employees
can apply for leave, view their salary slip, or complete training online.

6. Financial Reporting: Financial reporting is the process of recording all financial

transactions and preparing reports like income statements, budgets, and profit analysis.
Information systems make calculations faster, more accurate, and more transparent. Example:
A business uses accounting software (like Tally or QuickBooks) to generate monthly profit and
loss statements automatically.

7. Marketing and Promotion: This process includes market analysis, advertising, pricing, and
promotions. Digital information systems help businesses reach targeted customers and track
marketing results. Example: A restaurant runs Facebook ads and uses analytics tools to see
how many people clicked the ad and visited the restaurant.

Managing a Business and Firm Hierarchies

Businesses organize their employees in a hierarchy to coordinate work and make decisions
efficiently. In a hierarchy, authority is concentrated at the top and flows downward. Each level
of employees has different responsibilities and different information needs.

1. Senior Management: Top-level managers make strategic decisions about the company’s
future, such as goals, expansion, and major investments. They need summary reports, trends,
forecasts, and overall performance metrics. Example: The CEO of a retail chain reviews total
annual sales, profits, and market trends to plan expansion into new cities.

2. Middle Management: Middle managers implement the strategies of senior management

and coordinate between top-level and operational staff. They need detailed reports,
performance data, and progress updates to monitor departments. A regional manager checks
monthly sales reports of each store and guides store managers to achieve targets.

3. Operational Management: Operational managers supervise daily activities and ensure

tasks are done correctly. They need real-time operational data, schedules, and workflow
updates. Example: A store manager tracks daily sales, inventory levels, and staff attendance to
manage store operations smoothly.

4. Knowledge Workers: Knowledge workers analyze information, make decisions, and solve
problems. They use their expertise to improve business processes. They need access to
databases, analytical tools, and current information. Example: A market analyst studies
customer purchase patterns to suggest new products for the company.

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5. Data Workers: Data workers collect, process, and store data for the company. They need
accurate and structured data input forms and systems. Example: A clerk entering daily sales
into the company’s accounting software.

6. Production or Service Workers: These are the employees who produce goods or provide
services directly. They need task instructions, schedules, and immediate feedback. Factory
workers follow a daily production plan or restaurant staff follow customer orders to prepare
meals.

The Business Environment

Business Environment: The business environment is the combination of internal and external
factors that affect how a business operates, makes decisions, and achieves its goals. These
factors can be global or immediate (local).

1. Global Environment Factors

These are broad factors that affect businesses around the world.

• Technology and Science: Advances in technology and scientific research can improve
products, production methods, and services. Example: Companies using AI to automate
customer support or production lines.
• Economy: Global economic conditions, like inflation, exchange rates, or trade policies,
influence business decisions. Example: A global recession may reduce customer
demand for luxury goods.

• Politics: Political stability, government policies, and international relations affect

business operations. Example: Changes in trade policies or tariffs impact import/export
businesses.

• International Change: Global trends, events, and cultural shifts can affect business
strategies. Example: Growing environmental awareness leads companies worldwide to
adopt sustainable practices.

2. Immediate Environment Factors

These are factors closer to the business that directly influence day-to-day operations.

• Customers: The people or organizations who buy products or services. Example: A

restaurant adjusts its menu based on customer preferences.
• Suppliers: Companies or individuals providing materials or services needed for
business. Example: A bakery relies on flour suppliers for daily production.
• Competitors: Other businesses offering similar products or services. Example: Two
coffee shops in the same area compete for customers.

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 • Regulations: Laws and rules businesses must follow. Example: Food safety
regulations for restaurants or tax rules for all businesses.

• Stockholders: People or entities who invest in the business and expect returns.
Example: Shareholders of a company influence decisions through voting or board
meetings.

The Role of Information Systems in a Business

Firms invest in information systems in order to:
1. Achieve Operational Excellence: Firms use information systems to improve efficiency and
productivity in their operations. Streamlined processes reduce costs and save time, helping the
business run smoothly. Example: A supermarket uses an automated inventory system to track
stock, reduce errors, and speed up checkout.

2. Develop New Products and Services: Information systems help businesses analyze
customer needs, trends, and data to create innovative products and services. Example: A tech
company uses customer feedback and market data to design a new smartphone feature.

3. Attain Customer Intimacy and Service: Businesses use information systems to understand
their customers better and provide personalized services, which strengthens customer
relationships. Example: An online store tracks purchase history to recommend products
tailored to each customer.

4. Improve Decision Making: Information systems provide accurate, timely, and relevant
information that helps managers make informed decisions. Example: A manager uses a
dashboard showing real-time sales data to decide which products to promote.

5. Promote Competitive Advantage: Businesses use information systems to stand out from
competitors by improving products, services, and efficiency. Example: A logistics company
uses route optimization software to deliver faster than competitors.

6. Ensure Survival: In today’s digital world, companies rely on information systems to adapt
to changes and stay in business. Example: A retail company implements e-commerce systems
to survive the shift from offline to online shopping.

Systems for Management Decision Making and Business

Intelligence
1. Systems for Business Intelligence: These systems support decision-making at all
management levels. They provide accurate and timely information to help managers make
better strategic, tactical, and operational decisions.

• Management Information Systems (MIS): Provide regular reports based on TPS data
to help managers monitor and control operations.
• Decision Support Systems (DSS): Help managers make non-routine, complex
decisions using data models and analysis tools.

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 • Executive Support Systems (ESS): Provide senior executives with summaries and
dashboards for strategic decision-making.

Example: A manager uses MIS reports to track monthly sales trends, a DSS to decide on new
product launch strategies, and an ESS dashboard to review overall company performance for
board meetings.

2. Transaction Processing Systems (TPS): Transaction processing systems keep track of the
basic activities and transactions of an organization. They serve operational managers by
answering routine questions and monitoring the flow of transactions. TPS also track internal
operations and the firm’s relationship with the external environment, making them central to
business functioning.

Transaction Processing Systems are information systems that serve operational managers by
handling day-to-day business transactions. They are essential for the smooth functioning of a
business.

• Serve Operational Managers: TPS support managers by providing information about

routine activities and helping manage daily operations.

• Answer Routine Questions and Track Transactions: They handle standard queries
and track the flow of transactions through the organization, such as checking inventory
or granting customer credit.

• Monitor Internal Operations and External Relationships: TPS keep track of the
status of internal processes and the company’s interactions with suppliers, customers,
and other external parties.

• Produce Information for Other Systems: TPS generate the foundational data used by
other systems like MIS, DSS, and ESS for higher-level decision-making.
• Central to Business Operations: They are critical to business functioning, as almost
all operational activities rely on TPS for accuracy, efficiency, and reliability.

Example:

• Inventory Management: A TPS tracks product stock levels and updates them with
each sale.
• Banking Transactions: A TPS processes customer deposits, withdrawals, and account
balance updates in real time.

Tyes:
• Point of Sale (POS) Systems in Retail: POS systems are a type of transaction
processing system (TPS) used in retail stores to handle sales transactions. They record
customer purchases, update inventory, and process payments in real time, helping stores
manage operations efficiently. Example: A supermarket’s POS system records each
item a customer buys. When the cashier scans a product, the system updates the
inventory, processes the payment, and keeps a record of the sale immediately.

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 • ATM Transaction Processing in Banking: ATMs are TPS used by banks to handle
customer banking transactions automatically. They allow customers to withdraw cash,
deposit money, check balances, and more, while updating the bank’s records in real
time. Example: When a customer uses an ATM to withdraw money, the TPS verifies
the account balance, updates it with the new amount, and provides a confirmation to
the customer instantly.

3. Management Information Systems (MIS): Management Information Systems are

information systems that provide middle managers with reports on the organization’s
performance. They help managers monitor operations and predict future performance.

• Summarize and Report Operations: MIS takes data from transaction processing
systems (TPS) and organizes it into useful summaries and reports.

• Periodic Reporting: MIS typically provides weekly, monthly, or annual reports, but
can sometimes allow managers to look into daily or hourly data.

• Limited Flexibility: These systems are usually not very flexible and have limited
analytical capabilities, focusing mainly on reporting rather than complex analysis.

Example: A retail chain uses MIS to generate monthly sales reports for each store, helping
managers monitor sales trends and plan inventory for the next month.

Types:

• Customer Relationship Management (CRM) Systems: CRM systems store and

manage customer information, track interactions, and analyze customer data to improve
customer relationships, identify sales opportunities, and support marketing efforts.
Example: A sales team uses a CRM to follow up on leads, identify potential sales, and
tailor marketing efforts based on each customer’s purchase history.
• Business Intelligence (BI) Systems: BI systems analyze business data to provide
insights into operations and performance, enabling managers and leaders to make data-
driven strategic decisions and improve business efficiency. Example: A retail company
uses BI software to analyze sales trends, monitor key performance indicators (KPIs),
and identify areas for improvement to make informed business decisions.

4. Decision Support Systems (DSS): DSS are designed to help middle managers make non-
routine and complex decisions by analyzing data from multiple sources, including TPS, MIS,
and external information. They provide interactive tools and models to evaluate different
scenarios and options.

• Serve Middle Managers: DSS assist managers in planning, problem-solving, and

decision-making beyond routine tasks.
• Support Non-Routine Decisions: These systems help answer "what-if" questions.
Example: A manager asks, “What will happen to the production schedule if December
sales double?” and DSS provides insights.

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 • Use of Data: DSS often combine internal data (from TPS and MIS) with external
information to make informed decisions.

• Types of DSS:

o Model-Driven DSS: Uses mathematical or simulation models. Example:

Voyage-estimating systems for shipping logistics.
o Data-Driven DSS: Focuses on analyzing large datasets. Example: Intrawest’s
marketing analysis system for tourism trends.
Area:

• Inventory Management: DSS are used in inventory management to monitor stock

levels, predict inventory needs, and optimize stock based on historical data and demand
patterns. This helps businesses reduce holding costs and avoid stockouts. Example: A
retail business uses DSS to track sales trends, seasonal demand, and regional
preferences. The system recommends reorder quantities and identifies slow-moving
items, helping the store maintain optimal stock levels.
• Pricing and Revenue Management: DSS help businesses set optimal prices and
manage revenue by analyzing demand, market trends, and competitor pricing. This
ensures maximum revenue while maintaining efficiency. Example: Airlines and hotels
use DSS for dynamic pricing. By analyzing booking patterns, customer demand, and
competitor rates, the system suggests optimal prices to maximize revenue while
balancing occupancy or load factors.

5. Executive Support Systems (ESS): ESS are designed to help senior managers address
strategic issues, analyze long-term trends, and make nonroutine decisions. They provide
summarized, high-level information from internal and external sources in an easy-to-
understand format.
• Serve Senior Managers: ESS support top executives in strategic planning and
decision-making.

• Address Strategic Issues and Long-Term Trends: Help answer questions like, “What
products should we produce in five years?”

• Nonroutine Decision Making: ESS assist in decisions that are complex, unstructured,
and unique.

• Generalized Computing Capacity: Provides flexible computing tools that can be

applied to a wide variety of problems.

• Data Sources: Draws summarized information from MIS, DSS, and external data
sources.

• Presentation: Typically uses a web portal or digital dashboard to present information

clearly and interactively.

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Example: A company’s executive team uses a digital dashboard to review market trends,
financial forecasts, and competitor data to decide on new product lines and long-term
investment strategies.

7. Digital Dashboard: A digital dashboard is an interactive visual display that shows key
information, metrics, and performance indicators of a business in real time. It helps managers
and executives monitor operations and make informed decisions quickly. Example: A
company’s sales dashboard shows daily sales, top-selling products, regional performance, and
inventory levels on one screen, allowing managers to track performance and respond
immediately to changes.

MIS vs DSS
Feature Management Information System Decision Support System (DSS)
(MIS)
Purpose Provides regular reports to monitor Helps managers make non-routine,
and control operations complex decisions
Users Middle managers Middle or higher-level managers
Type of Routine and structured Non-routine and unstructured
Decisions
Data Sources Mainly internal data from TPS Internal data (TPS/MIS) + external
data
Flexibility Less flexible, generates Highly flexible, supports interactive
standardized reports analysis and modeling
Example Monthly sales report of all stores Scenario analysis for production if
December sales double

DSS vs ESS
Feature Decision Support System Executive Support System (ESS)
(DSS)
Purpose Helps managers analyze Supports senior executives in strategic,
complex, non-routine problems long-term decision-making
and make decisions
Users Middle or upper-level managers Top-level executives
Type of Semi-structured or unstructured Strategic, unstructured, long-term
Decisions
Data Internal data (TPS/MIS) + Summarized internal reports (MIS/DSS)
Sources external data; model-driven or + external market, industry, and
data-driven competitor data

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 Flexibility Flexible; supports what-if Highly flexible; provides dashboards,
analysis, simulations, scenario portals, and graphical summaries
modeling
Example Analyzing the impact on Reviewing market trends and competitor
production if December sales actions to decide which products to
double launch in the next five years

TPS and MIS

Feature Transaction Processing Management Information System
System (TPS) (MIS)
Purpose Records and processes day-to- Summarizes and organizes data from
day routine transactions TPS to provide reports for monitoring
and controlling
Users Operational managers and Middle managers
frontline employees
Type of Structured, routine operational Tactical and monitoring decisions
Decisions decisions
Data Raw data from business Processed data from TPS
Sources transactions (sales, payments,
inventory)
Flexibility Less flexible; focuses on Moderately flexible; produces
accurate and fast transaction predefined reports with some ability to
processing drill down
Example POS system in a supermarket Monthly sales report showing total sales
recording sales and updating by product and region
inventory

Systems for Linking the Enterprise

These systems help a business integrate processes across departments, improve coordination,
and support decision-making at all management levels. They ensure that information flows
seamlessly throughout the organization.

• Enterprise Applications: These are information systems that span functional areas,
focus on executing business processes across the firm, and support all levels of
management.

Four Major Types of Enterprise Applications

1. Enterprise Systems: Enterprise systems are designed to integrate core business processes
across functional areas and all levels of management. They help organizations standardize and

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streamline operations across the entire enterprise. Example: A multinational company uses an
enterprise system to coordinate finance, HR, and production processes across all its global
branches, ensuring consistent operations and reporting.

2. Supply Chain Management (SCM) Systems: SCM systems manage the flow of goods,
information, and finances from suppliers to customers. They help businesses coordinate
production, inventory, and distribution efficiently. Example: A manufacturing company uses
SCM software to track raw materials from suppliers, monitor production schedules, and ensure
timely delivery to retailers.

3. Customer Relationship Management (CRM) Systems: CRM systems store and manage
customer information, track interactions, and analyze customer data to improve relationships
and increase sales. Example: A sales team uses a CRM to follow up on leads, identify sales
opportunities, and tailor marketing campaigns based on each customer’s purchase history.
4. Knowledge Management (KM) Systems: KM systems capture, store, and share
organizational knowledge and expertise to improve decision-making and innovation. They help
employees access information and best practices across the firm. Example: A consulting firm
uses a KM system to provide consultants with access to case studies, project templates, and
expert advice from previous projects.

Enterprise Systems (ERP Systems)

Enterprise systems, also called Enterprise Resource Planning (ERP) systems, are designed to
integrate data from key business processes into a single system. They speed up communication,
improve accuracy, and enable managers to get an overall view of operations.

• Integrate Key Business Processes: Combine functions like finance, HR, production,
inventory, and sales into one system.

• Improve Communication: Information flows faster across departments, reducing

delays and errors.

• Increase Flexibility and Accuracy: Helps respond to customer requests quickly and
fulfill orders accurately.

• Provide Overall Operational View: Managers can monitor performance and make
informed decisions.

Example Platform: Oracle NetSuite is a cloud-based ERP that integrates financials, CRM,
inventory management, e-commerce, and more.

Example: In the order fulfillment process, when a customer places an order, the ERP system
updates inventory, notifies the warehouse, processes billing, and schedules shipping
automatically, ensuring smooth and accurate order delivery.

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Supply Chain Management (SCM) Systems
SCM systems are designed to manage relationships with suppliers, purchasing firms,
distributors, and logistics companies. They help businesses coordinate the flow of products,
information, and finances across the supply chain to improve efficiency and reduce costs.

• Manage Shared Information: Track orders, production, inventory levels, and

shipments to ensure smooth operations.

• Goal: Deliver the right amount of product from the source to the customer as quickly
and cost-effectively as possible.

• Inter-Organizational System: Automates the flow of information across different

organizations, linking suppliers, manufacturers, and distributors.

Example Platform/Company: Walmart uses advanced SCM technology to maintain product

availability, reduce costs, and improve efficiency.

Key Applications at Walmart:

• Vendor Management via SCM: Walmart’s Retail Link system connects suppliers with
real-time inventory data, enabling efficient restocking.

• Inventory Tracking: Using RFID and barcodes integrated with SCM, Walmart tracks
products from suppliers to distribution centers and retail stores.

Example Process: When inventory is low at a store, suppliers are automatically notified via
Retail Link, allowing timely replenishment without overstocking or stockouts.

Customer Relationship Management (CRM) Systems

CRM systems help businesses manage relationships with customers by coordinating processes
in sales, marketing, and customer service. They are designed to optimize revenue, improve
customer satisfaction, increase retention, and identify the most profitable customers.

• Coordinate Customer-Related Processes: Integrates sales, marketing, and service to

provide a consistent experience.
• Goals:

o Optimize revenue
o Improve customer satisfaction
o Increase customer retention
o Identify and retain the most profitable customers

Example Platform/Company: Amazon uses advanced CRM systems integrated with data
analytics, AI, and machine learning to enhance customer relationships.

Example Process: Amazon’s CRM tracks customer behavior, including search history, past
purchases, and browsing patterns. AI algorithms provide personalized product

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recommendations, such as suggesting yoga mats or protein supplements to a customer who
buys fitness equipment, improving the shopping experience and increasing sales.

Knowledge Management (KM) Systems

KM systems help businesses capture, store, and apply knowledge and expertise to improve
business processes and decision-making. They ensure that relevant knowledge is available
wherever and whenever needed and can also link the firm to external sources of knowledge.

• Manage Knowledge Processes: Capture, organize, and apply expertise across the
organization.

• Improve Business Processes: Make knowledge accessible to enhance efficiency and

support better management decisions.

• External Knowledge Links: Connect internal knowledge with external insights,

trends, and best practices.

Example Platform/Company: Microsoft uses SharePoint as a centralized platform for

knowledge management, collaboration, and information sharing.

Example Process: SharePoint acts as a central repository where employees can store, search,
and retrieve documents, reports, manuals, and other knowledge assets. For instance, a
developer in one region can access product design documents, training materials, or code
snippets uploaded by another team, reducing redundancy and promoting knowledge reuse.

Intranets and Extranets

These are technology platforms that increase integration and speed up the flow of information
within and across organizations. They help improve communication, collaboration, and
operational efficiency.

1. Intranets: Intranets are internal networks based on Internet standards. They are often private
sections of a company’s website, accessible only to employees, and are used for internal
communication, information sharing, and collaboration. Example: The Walt Disney Company
uses the My Disney Experience intranet for its employees (Cast Members). Employees use it
to receive company updates, announcements, and policies, ensuring everyone stays informed
about organizational changes, upcoming events, or training sessions.

2. Extranets: Extranets are company web platforms accessible only to authorized vendors,
suppliers, or partners. They facilitate collaboration and information sharing with external
stakeholders. Example: Walmart uses the Retail Link extranet to share information with
suppliers. Suppliers can access:

• Real-time inventory levels

• Sales performance metrics for their products
• Forecasting and replenishment information
• Alerts about low stock or out-of-stock situations

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This allows suppliers to restock efficiently, plan production, and improve supply chain
coordination.

Topic Intranet Extranet

Meaning A private network used inside an A private network that allows outsiders
organization. (like customers, suppliers) to access
selected parts.

Users Only employees of the company. Employees plus trusted outsiders.

Access Accessible only within the company Accessible from outside but with
(or with secure login). special permission.

Purpose To share internal information like To share information with partners,

policies, notices, internal buyers, suppliers—for business
communication. collaboration.

Security Very high (strictly internal). High, but access is partially open to
Level outsiders.

Example A company’s internal HR portal for A supplier login portal where vendors
employees to check salary, leave, check orders, delivery schedules.
notices.

E-Business, E-Commerce, and E-Government

These terms describe the use of digital technologies and the Internet to conduct business, trade,
and government activities.

1. E-Business: E-business involves using digital technologies to conduct all aspects of business
processes, including internal operations, supply chain management, and customer interactions.
Example: A company like Amazon uses e-business systems to manage inventory, track orders,
handle payments, and coordinate logistics, integrating technology into nearly every part of its
operations.

2. E-Commerce: E-commerce refers specifically to buying and selling goods and services
online. It focuses on the transactional aspect of business using digital platforms. Example:
eBay allows individuals and businesses to buy and sell products online, enabling transactions
without a physical store.

3. E-Government: E-government uses digital technology to provide government services and

information online, making it easier for citizens to access services and communicate with
government agencies. Example: The Bangladesh Government’s National Portal allows citizens
to apply for licenses, pay taxes, and access official documents online without visiting
government offices physically.

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What Is Collaboration?
Collaboration is the process of working together with others to achieve common goals, share
knowledge, and solve problems. It has become increasingly important in modern business due
to changes in work, organizations, and technology.
Growing Importance of Collaboration:
• Changing Nature of Work: Work has shifted from routine tasks to more complex,
knowledge-based activities requiring teamwork.

• Growth of Professional Work: Increasing number of jobs require specialized expertise

and coordination among professionals.

• Changing Organization of the Firm: Firms are becoming flatter and more networked,
emphasizing cross-functional teamwork.

• Changing Scope of the Firm: Companies now operate globally, often requiring
collaboration across geographies.

• Emphasis on Innovation: Innovation requires sharing ideas and collective problem-

solving.

• Changing Culture of Work and Business: Modern workplaces value communication,

teamwork, and collaboration more than hierarchical structures.

Example: A software development company uses collaborative tools like Microsoft Teams or
Slack to allow developers, designers, and project managers to work together in real-time, share
updates, and solve problems efficiently, regardless of location.

Business Benefits of Collaboration and Teamwork

Collaboration and teamwork allow employees to work together, share knowledge, and make
decisions collectively, which improves productivity, innovation, and overall business
performance.

Key Benefits:

• Improved Sales and Marketing: Teams can share customer insights, coordinate
campaigns, and respond faster to market trends.

• Enhanced Research and Development: Collaboration helps combine expertise,

accelerate innovation, and solve complex problems more efficiently.

• Better Communication: Modern teamwork reduces silos compared to older

hierarchical “command and control” structures.

• Increased Efficiency: Teams at all levels can make faster decisions, adapt to change,
and respond to customer needs more effectively.

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Example: A pharmaceutical company forms cross-functional teams of researchers, marketing
specialists, and regulatory experts to develop and launch a new drug faster, improving time-to-
market and coordination.

Tools and Technologies for Collaboration and Teamwork

Collaboration tools and technologies help employees communicate, share information, and
work together effectively, regardless of location. They support teamwork, knowledge sharing,
and faster decision-making.
Key Tools and Technologies:
• E-mail and Instant Messaging (IM): Allow quick communication and sharing of
messages, files, and updates in real time.

• Social Networking: Platforms like LinkedIn or internal social networks connect

employees and support collaboration, networking, and knowledge sharing.

• Wikis: Collaborative websites where teams can create, edit, and share content
collectively, such as project documentation or guidelines.
• Virtual Worlds: Simulated environments where teams can meet, interact, and
collaborate in a 3D or virtual space.
• Internet-Based Collaboration Environments: Platforms that integrate multiple tools
for teamwork:

o Virtual Meeting Systems (Tele-presence): Enable video conferences and

remote meetings with high-quality audio and video.
o Google Apps / Google Sites: Cloud-based tools for document sharing, project
management, and collaboration.
o Microsoft SharePoint: Centralized platform for document management,
information sharing, and collaboration within the organization.
o Lotus Notes: Software for email, calendars, databases, and collaborative
applications to support teamwork.

Example: A global marketing team uses Microsoft SharePoint to store campaign documents,
track progress, and communicate with team members across different countries, enabling
seamless collaboration despite geographical distances.

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