Information Technology in Accountancy – I-munotes

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INTRODUCTION TO COMPUTERS
Unit Structure
1.0 Objectives
1.1 Computer Definition
1.2 History of Computers
1.3 Basic structure of PC
1.4 Parts of a Computers
1.5 Input Devices
1.6 Output Devices
1.7 Central Processing Unit (CPU)
1.8 Computer Memory
1.9 Computer Software
1.10 Networking
1.0 OBJECTIVES
By the end of this module, you should be able to :
1) Identify and name computer parts, other type of computers
2) Define basic concepts used in computer
3) Describe the functions of computer hardware
4) Use of computer software
5) Identify the memory and storage devices and various functions of it
6) Identify the networks and topologies
1.1 COMPUTER DEFINITION
The simple meaning of a computer is a machine that can calculate.
However, modern computers are not just a calculating device anymore.
They can perform a variety of tasks. In simple terms, a computer is a
programmable electronic machine used to store, retrieve, and process data. munotes.in

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2 "A computer is a programmable electronic device that takes data,
perfor ms instructed arithmetic and logical operations, and gives the
output."
Whatever is given to the computer as input is called 'data', while the
output received after processing is called 'information'.
A computer is a general purpose electronic device that can be programmed
to carry out a set of arithmetic or logical operations.
Computers can be categorized in several ways. For example, computers
can be analog or digital based on their data representation. Some
computers are designed for use by one person, s ome are meant to be used
by groups of people. Computers can also be categorized by their speed at
which they operate and types of tasks they can perform.
The computer not only processes data, but also stores it. It uses various
electronic means for data an d information storage. This stored data can be
modified by the computer using its instructions and can transform the data
into information. The data stored on digital computers is in tiny units
called bits. The stored data is measured using these units. Th e data is
stored, processed and given out to the user using its different parts.
1.2 HISTORY OF COMPUTERS
The term 'Computer' was first introduced in 1640 and referred to as 'one
who calculates'. It was derived from the Latin word 'computare', which
meant 'to calculate'. In 1897, it was known as the 'calculating machine'.
Later in 1945, the term 'computer' was introduced as 'programmable
digital electronic computer, which is now called a 'computer'.
When the computers were introduced, they were large and c ould fill an
entire room. Some computers were operated using large -sized vacuum
tubes. In 1833, Charles Babbage (known as the father of the computer)
invented an early calculator, which was named as the ' difference engine '.
Later in 1837, he introduced the first mechanical, general -purpose
computer ' Analytical Engine' . Over time, computers became powerful in
performance and small in size.
1.2.1 Generations of Computer
A generation of computers refers to the specific improvements in
computer technology with time. In 1946, electronic pathways called
circuits were developed to perform the counting. It replaced the gears and
other mechanical parts used for counting in previous computing machines.
In each new generation, the circuits became smaller and more adva nced
than the previous generation circuits. The miniaturization helped increase
the speed, memory and power of computers.

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3 There are five generations of computers which are described below :
First Generation (1946 - 1959) : The first generation (1946 -1959)
computers were slow, huge and expensive. In these computers, vacuum
tubes were used as the basic components of CPU and memory. These
computers mainly depended on a batch operating system and punch cards.
Magnetic tape and paper tape were used as output and input devices in this
generation.
Some popular first generation computers are :
ENIAC (Electronic Numerical Integrator and Computer)
EDVAC (Electronic Discrete Variable Automatic Computer)
UNIVACI (Universal Automatic Computer)
IBM -701
IBM -650
Second Generation (1959 - 1965) : The second generation (1959 -1965)
was the era of the transistor computers. These computers used transistors
which were cheap, compact and consuming less power; it made transistor
computers faster than the first generation comput ers. In this generation,
magnetic cores were used as the primary memory and magnetic disc and
tapes were used as the secondary storage. Assembly language and
programming languages like COBOL and FORTRAN, and Batch
processing and multiprogramming operating systems were used in these
computers.
Some of the popular second generation computers are :
IBM 1620, IBM 7094, CDC 1604, CDC 3600, UNIVAC 1108
Third Generation (1965 - 1971) : The third generation computers used
integrated circuits (ICs) instead of transi stors. A single IC can pack a huge
number of transistors which increases the power of a computer and
reduces the cost. The computers also became more reliable, efficient and
smaller in size. These generation computers used remote processing, time -
sharing, and multi -programming as operating systems.
Some of the popular third generation computers are :
IBM -360 series, Honeywell -6000 series, PDP(Personal Data Processor),
IBM -370/168, TDC -316
Fourth Generation (1971 - 1980) : The fourth generation (1971 -1980)
computers used very large scale integrated (VLSI) circuits; a chip
containing millions of transistors and other circuit elements. These chips
made this generation of computers more compact, powerful, fast and
affordable. These generation computers used re al time, time sharing and
distributed operating systems. The programming languages like C, C++,
DBASE were also used in this generation. munotes.in

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4 Some of the popular fourth generation computers are :
DEC 10, STAR 1000, PDP 11, CRAY -1(Supercomputer)
Fifth Generatio n (1980 - Present) : In fifth generation (1980 -till date)
computers, the VLSI technology was replaced with ULSI (Ultra Large
Scale Integration). It made possible the production of microprocessor
chips with ten million electronic components. This generation of
computers used parallel processing hardware and AI (Artificial
Intelligence) software. The programming languages used in this
generation were C, C++, Java, .Net, etc.
Some of the popular fifth generation computers are :
Desktop, Laptop, NoteBook, Ult raBook, ChromeBook
1.2.2 Type of Computers

A) On the basis of size, computers can be of five types :
1) Supercomputer
Supercomputers are the biggest and fastest computers. They are
designed to process huge amounts of data. A supercomputer can process
trillions of instructions in a second .
It has thousands of interconnected processors. Supercomputers are
particularly used in scientific and engineering applications such as
weather forecasting, scientific simulations and nuclear energy research.
The firs t supercomputer was developed by Roger Cray in 1976 .

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5 Characteristics or applications of supercomputers :
● It has the ability to decrypt passwords to enhance protection for
security reasons.
● It produces excellent results in animations.
● It is used for virtua l testing of nuclear weapons and critical medical
tests.
● It can study and understand climate patterns and forecast weather
conditions.
● It helps in designing the flight simulators for pilots at the beginner
level for their training.
● It helps in extracting useful information from data storage centres or
cloud systems.
● It helps in the diagnosis of various critical diseases and in producing
accurate results in brain injuries, strokes, etc.
● It helps in scientific research areas by accurately analysing data
obtained from exploring the solar system, satellites, and movement
of Earth.
● It is also used in a smog control system where it predicts the level of
fog and other pollutants in the atmosphere.
2) Mainframe Computer
Mainframe computers are designed to support hundreds or thousands of
users simultaneously . They can support multiple programs at the same
time. It means they can execute different processes simultaneously. These
features of mainframe computers make them ideal for big organizations
like banking and t elecom sectors, which need to manage and process a
high volume of data that requires integer operations such as indexing,
comparisons, etc.
Characteristics of Mainframe Computers :
● It can process huge amounts of data, e.g. millions of transactions in a
second in the banking sector.
● It has a very long life. It can run smoothly for up to 50 years after
proper installation.
● It gives excellent performance with large scale memory management.
● It has the ability to share or distribute its workload among other
processors and input/output terminals. munotes.in

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6 ● There are fewer chances of error or bugs during processing in
mainframe computers. If any error occurs it can fix it quickly without
affecting the performance.
● It has the ability to protect the stored data and other ong oing exchange
of information and data.
Applications of mainframe computers :
● In health care, it enabled hospitals to maintain a record of their
millions of patients in order to contact them for trea2tment or related
to their appointment, medicine updates o r disease updates.
● In the field of defence , it allows the defence departments to share a
large amount of sensitive information with other branches of defence.
● In the field of education , it helps big universities to store, manage and
retrieve data related t o their courses, admissions, students, teachers,
employees and affiliated schools and colleges.
● In the retail sector , the retail companies that have a huge customer
base and branches use mainframe computers to handle and execute
information related to thei r inventory management, customer
management, and huge transactions in a short duration.
3) Minicomputer
It is a midsize multiprocessing computer . It consists of two or more
processors and can support 4 to 200 users at one time . Miniframe
computers are used in institutes and departments for tasks such as billing,
accounting and inventory management. A minicomputer lies between the
mainframe and microcomputer as it is smaller than the mainframe but
larger than a microcomputer.
Characteristics of miniframe or minicomputer :
● It is light weight that makes it easy to carry and fit anywhere.
● It is less expensive than mainframe computers.
● It is very fast compared to its size.
● It remains charged for a long time.
● It does not require a controlled operational environmen t.
Applications of minicomputers :
● Process control : It was used for process control in manufacturing. It
mainly performs two primary functions that are collecting data and munotes.in

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7 feedback. If any abnormality occurs in the process, it is detected by the
minicompu ter and necessary adjustments are made accordingly.
● Data management : It is an excellent device for small organizations
to collect, store and share data. Local hospitals and hotels can use it to
maintain the records of their patients and customers respecti vely.
● Communications Portal : It can also play the role of a
communication device in larger systems by serving as a portal between
a human operator and a central processor or computer.
4) Workstation
Workstation is a single user computer that is designed f or technical or
scientific applications . It has a faster microprocessor, a large amount of
RAM and high speed graphic adapters. It generally performs a specific
job with great expertise ; accordingly, they are of different types such as
graphics workstation , music workstation and engineering design
workstation.
Characteristics of workstation computer :
● It is a high -performance computer system designed for a single user
for business or professional use.
● It has larger storage capacity, better graphics, and a m ore powerful
CPU than a personal computer.
● It can handle animation, data analysis, CAD, audio and video creation
and editing.
Any computer that has the following five features, can be termed as a
workstation.
1) Multiple Processor Cores : It has more proces sor cores than simple
laptops or computers.
2) ECC RAM : It is provided with Error -correcting code memory that can
fix memory errors before they affect the system's performance.
3) RAID (Redundant Array of Independent Disks) : It refers to multiple
internal hard drives to store or process data. RAID can be of different
types, for example, there can be multiple drives to process data or
mirrored drives where if one drive does not work then the other starts
functioning.
4) SSD : It is better than conventional ha rd-disk drives. It does not have
moving parts, so the chances of physical failure are very less.
5) Optimized, Higher end GPU : It reduces the load on CPU. E.g., the
CPU has to do less work while processing the screen output. munotes.in

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8 5) Microcomputer
Microcomputer is also known as a personal computer. It is a general -
purpose computer that is designed for individual use. It has a
microprocessor as a central processing unit, memory, storage area, input
unit and output unit. Laptops and desktop computers are examples o f
microcomputers. They are suitable for personal work that may be making
an assignment, watching a movie, or at the office for office work.
Characteristics of a microcomputer :
● It is the smallest in size among all types of computers.
● A limited number of s oftware can be used.
● It is designed for personal work and applications. Only one user can
work at a time.
● It is less expensive and easy to use.
● It does not require the user to have special skills or training to use it.
● Generally, it comes with a single sem iconductor chip.
● It is capable of multitasking such as printing, scanning, browsing,
watching videos, etc.
B) On the basis of type of data handling capabilities, computers can
be of three types :
1) Analogue Computer
It is particularly designed to proces s analogue data. Continuous data that
changes continuously and cannot have discrete values is called analogue
data. So, an analogue computer is used where we don’t need exact values
or need approximate values such as speed, temperature, pressure etc.
It can directly accept the data from the measuring device without first
converting it into numbers and codes.
It measures the continuous changes in physical quantity.
It gives output as a reading on a dial or scale. For example speedometer,
mercury thermomet er etc.
2) Digital Computer
Digital computers are designed in such a way that it can easily perform
calculations and logical operations at high speed. It takes raw data as an
input and processes it with programs stored in its memory to produce the
final o utput. It only understands the binary input 0 & 1, so the raw input
data is converted to 0 and 1 by the computer and then it is processed by munotes.in

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9 the computer to produce the result or final output. For example all modern
computers like laptops, desktops includi ng smartphones.
3) Hybrid Computer
It is made by combining both analog and digital computers. They are fast
like an analog computer and have memory and accuracy like a digital
computer, so it has the ability to process both continuous and discrete data.
It is widely used in specialized applications where both analog and digital
data is required to be processed. For example, A processor which is used
in petrol pumps that converts the measurements of fuel into quantity and
price.
C) On the basis of purpose, c omputers can be of two types :
1. General Purpose
General computers can do various everyday tasks such as writing a word
processing letter, document preparation, recording, financial analysis,
Printing documents, creating databases, and calculations with accuracy
and consistency.
The size, storage capacity, and cost of such computers are mainly less.
The ability of these computers is limited in performing specialized tasks.
Still, it is versatile and useful for serving people’s basic needs at home or
in the workplace in the environment.
For example, Desktops, laptops, smartphones, and tablets are used on a
daily basis for general purposes.
2. Special Purpose
These computers are designed to perform a particular or specialized task.
The size, storage capacit y, and cost of such computers mainly depend on
the nature and size of the work.
The function of these computers is consistent with any particular task. The
special computer needs specific input and devices as well as a compatible
motherboard with the processor to conduct work efficiently.
These computers are used for special purposes in weather forecasting,
space research, agriculture, engineering, meteorology, sa tellite operation,
traffic control, and research in chemical sciences.
For example, Automatic teller machines (ATM), Washing machines,
Surveillance equipment, Weather -forecasting simulators, Traffic -control
computers, Defense -oriented applications, Oil -exploration systems,
Military planes controlling computers.
1.3 BASIC STRUCTURE OF PC
The whole computer system is made up of different components that differ
with respect to its functionality and form. The three major components
comprise of the hardware, so ftware and data. munotes.in

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10 Hardware is any part of the computer you can touch. It is made up of
interconnected electronic devices. The hardware of a computer system
consists of mechanical devices to insert data, store it, process it and give
the output in various fo rms.
Software is a set of instructions that makes the computer perform tasks.
The software of a computer system supports the hardware devices in their
respective activities.
Data consists of individual facts or pieces of information. The computers’
prima ry job is to process this data into useful information. This
information in a computer system can be in various forms like, simple
text, graphics, videos etc.

The above figure represents the structure of a simple computer system.
Several types of input devices are used to insert the data in the computer
system. This data is stored on memory devices in the system. To process
the data, the central processing unit communicates with the available
memory devices.
To display the data to the users, various out put devices are used that form
the part of the computer system.
1.4 PARTS OF A COMPUTERS
There are five main computer components that are given below :
1) Input Devices
2) CPU
3) Output Devices
4) Primary Memory
5) Secondary Memory

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11 1.4.1 Operations of co mputer components
1) Inputting : It is the process of entering raw data, instructions and
information into the computer. It is performed with the help of input
devices.
2) Storing: The computer has primary memory and secondary storage to
store data and in structions. It stores the data before sending it to the CPU
for processing and also stores the processed data before displaying it as
output.
3) Processing: It is the process of converting the raw data into useful
information. This process is performed by the CPU of the computer. It
takes the raw data from storage, processes it and then sends back the
processed data to storage.
4) Outputting: It is the process of presenting the processed data through
output devices like monitor, printer and speakers.
5) Con trolling: This operation is performed by the control unit that is part
of the CPU. The control unit ensures that all basic operations are executed
in the right manner and sequence.
1.5 INPUT DEVICES
These are external hardware devices of a computer system that are used to
insert data inside the computer system. The data can be in the form of text,
images, video or command signals.
Some of the popular input devices are explained below :
1.5.1 Keyboard - it is a basic input device that is used to enter data into a
computer or any other electronic device by pressing keys. It has different
sets of keys for letters, numbers, characters, and functions. Keyboards are
connected to a computer through USB
or a Bluetooth device for wireless communication.
Types of keyboards : There can be different types of keyboards based on
the region and language used. Some of the common types of keyboards
are as follows :
1) QWERTY Keyboard :
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12 It is the most commonly used keyboard with computers in modern times.
It is named after the first six letters of the top row of buttons and is even
popular in countries that do not use Latin -based alphabet.
2) AZERTY Keyboard :

It is considered the standard French keyboard. It is d eveloped in France as
an alternative layout to the QWERTY layout and is mainly used in France
and other European countries.
Its name is derived from the first six letters that appear on the top left row
of the keyboard. The Q and W keys in the AZERTY keybo ard are
interchanged with A and Z keys in the QWERTY keyboard.
Furthermore, in the AZERTY keyboard the M key is located to the left of
the L key.
AZERTY keyboard differs from QWERTY keyboard not only in the
placement of letters but also in many other ways , e.g., it gives emphasis on
accents, which is required for writing European languages like French.
3) DVORAK Keyboard :

This type of keyboard layout was developed to increase the typing speed
by reducing the finger movement while typing. The most freque ntly used
letters are kept in a home row to improve typing.
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1.5.2 Mouse - The mouse is a hand -held input device which is used to
move cursor or pointer across the screen. It is designed to be used on a flat
surface and generally has left and right butt ons and a scroll wheel between
them. Laptop computers come with a touchpad that works as a mouse. It
lets you control the movement of cursor or pointer by moving your finger
over the touchpad.
Types of mouse :
1) Trackball Mouse:

It is a stationary inp ut device that has a ball mechanism to move the
pointer or cursor on the screen. The ball is half inserted in the device and
can be easily rolled with finger, thumb or the palm to move the pointer on
the screen. The device has a sensor to detect the rotati on of the ball. It
remains stationary; you don't need to move it on the operating surface. So,
it is an ideal device if you have limited desk space as you don't need to
move it like a mouse.
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14 2) Mechanical Mouse:

It has a system of a ball and several rol lers to track its movement. It is a
corded type of mouse. A mechanical mouse can be used for high
performance. The drawback is that they tend to get dust into the
mechanics and thus require regular cleaning.
3) Optical Mouse :

An optical mouse uses optic al electronics to track its movement. It is more
reliable than a mechanical mouse and also requires less maintenance.
However, its performance is affected by the surface on which it is
operated. Plain non -glossy mouse mat should be used for best results. T he
rough surface may cause problems for the optical recognition system, and
the glossy surface may reflect the light wrongly and thus may cause
tracking issues.
4) Cordless or Wireless Mouse :

As the name suggests, this type of mouse lacks cable and uses wireless
technology such as IrDA (infrared) or radio (Bluetooth or Wi -Fi) to munotes.in

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15 control the movement of the cursor. It is used to improve the experience of
using a mouse. It uses batteries for its power supply.
1.5.3 Scanner – The scanner uses the pictures a nd pages of text as input.
It scans the picture or a document. The scanned picture or document is
then converted into a digital format or file and is displayed on the screen
as an output. It uses optical character recognition techniques to convert
images i nto digital ones.
Types of Scanner :
1) Flatbed Scanner :

It has a glass pane and a moving optical CIS or CCD array. The light
illuminates the pane, and then the image is placed on the glass pane. The
light moves across the glass pane and scans the docu ment and thus
produces its digital copy.
2i) Handheld Scanner :

It is a small manual scanning device which is held by hand and is rolled
over a flat image that is to be scanned. The drawback in using this device
is that the hand should be steady while sc anning; otherwise, it may distort
the image. One of the commonly used handheld scanners is the barcode
scanner which is seen in shopping stores.
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16 3) Sheetfed Scanner :

In this scanner, the document is inserted into the slot provided in the
scanner. The m ain components of this scanner include the sheet -feeder,
scanning module, and calibration sheet. The light does not move in this
scanner. Instead, the document moves through the scanner. It is suitable
for scanning single page documents, not for thick obje cts like books,
magazines, etc.
4) Drum Scanner :

Drum scanner has a photomultiplier tube (PMT) to scan images. It does
not have a charge -coupled device like a flatbed scanner. The
photomultiplier tube is extremely sensitive to light. The image is placed on
a glass tube, and the light moves across the image, which produces a
reflection of the image which is captured by the PMT and processed.
These scanners have high resolution and are suitable for detailed scans.
5) Photo Scanner :
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17 It is designed to sca n photographs. It has high resolution and color depth,
which are required for scanning photographs. Some photo scanners come
with in -built software for cleaning and restoring old photographs.
1.5.4 Light pen -

A light pen is a computer input device that looks like a pen. The tip of the
light pen contains a light -sensitive detector that enables the user to point to
or select objects on the display screen. Its light sensitive tip detects the
object location and sends the corresponding signals to the CPU . It is not
compatible with LCD screens, so it is not in use today.
1.5.5 Digital Camera –

It is a digital device as it captures images and records videos digitally and
then stores them on a memory card. It is provided with an image sensor
chip to capture images, as opposed to film used by traditional cameras.
Besides this, a camera that is connected to your computer can also be
called a digital camera.
It has photosensors to record light that enters the camera through the lens.
When the light strikes the photosensors, each of the sensors returns the
electrical current, which is used to create the images.
1.5.6 Microphone – The micro phone is a computer input device that is
used to input the sound. It receives the sound vibrations and converts them
into audio signals or sends them to a recording medium. The audio signals
are converted into digital data and stored in the computer. The m icrophone munotes.in

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18 also enables the user to telecommunicate with others. It is also used to add
sound to presentations and with webcams for video conferencing.
1.5.7 Gesture recognition devices -

These devices take human gestures as input. There are many such d evices
that respond to gestures. For example, Kinect is one such device that
observes the movement of a player's body and interprets these movements
as inputs to video games. This feature is also available in certain tablets
and smartphones where you can p erform certain tasks such as taking
pictures using finger gestures such as swiping, pinching, etc.
1.5.8 Touch Screen :

It is the display screen of a device such as a smartphone, tablet, etc., that
allows users to interact or provide inputs to the device by using their
finger. Today, most electronic devices come with touchscreen as an
alternative to a mouse for navigating a graphical user interface. For
example, by touching, you can unlock your phone, open emails, open files,
play videos, etc. Besides thi s, it is used in lots of devices such as Camera,
Car GPS, Fitness machine, etc.
1.5.9 Webcam -
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19 Any camera which is connected to a computer is called a webcam. The in -
built camera provided on a computer can also be considered a webcam. It
is an input dev ice as it can take pictures, and can be used to record videos
if required. The pictures and videos are stored in the computer memory
and can be displayed on the screen if required. Although it wor ks almost
the same as the digital camera, it is different from a digital camera, as it is
designed to take compact digital photos that can be uploaded easily on the
webpages and shared with others through the internet.
1.5.10 Biometric Devices - it refers to a process in which a person is
identified through his or her biological features such as fingerprints, eye
cornea, face structure, etc. It is done by using biometric devices, which
can be of different types based on their scanning features and abilities such
as face scanner, hand scanner, fingerprint scanner etc.
1.6 OUTPUT DEVICES
The output device displays the result of the processing of raw data that is
entered in the computer through an input device. There are a number of
output devices that display output in different ways such as text, images,
hard copies, and audio or video.
Some of popular output devices are described below :
1.6.1 Monitor – The monitor is the display unit or screen of the computer.
It is the main output device that displays the processed data or information
as text, images, audio or video.
Types of monitor
1) CRT Monitor -

CRT monitors are based on the cathode ray tubes. They are like vacuum
tubes which produce images in the form of video signals. Cathode rays
tube produces a beam of electrons through electron guns that strike on the
inner phosphorescent surface of the screen to produce images on the
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20 and blue color. These dots start to glow when struck by el ectron beams
and this phenomenon is called cathodoluminescence.
The main components of a CRT monitor include the electron gun
assembly, deflection plate assembly, fluorescent screen, glass envelope,
and base.The front (outer surface) of the screen onto whi ch images are
produced is called the face plate. It is made up of fiber optics.
There are three electron beams that strike the screen: red, green, and blue.
So, the colors which you see on the screen are the blends of red, blue and
green lights. The magnet ic field guides the beams of electrons. Although
LCDs have replaced the CRT monitors, the CRT monitors are still used by
graphics professionals because of their color quality.
2) LCD Monitor -

The LCD monitor is a flat panel screen that is compact and li ght-weight as
compared to CRT monitors. It is based on liquid crystal display
technology which is used in the screens of laptops, tablets, smart phones,
etc. An LCD screen comprises two layers of polarized glass with a liquid
crystal solution between them. When the light passes through the first
layer, an electric current aligns the liquid crystals. The aligned liquid
crystals allow a varying level of light to pass through the second layer to
create images on the screen.
The LCD screen has a matrix of pixel s that display the image on the
screen. Old LCDs had passive -matrix screens in which individual pixels
are controlled by sending a charge. A few electrical charges could be sent
each second that made screens appear blurry when the images moved
quickly on t he screen.
Modern LCDs use active -matrix technology and contain thin film
transistors (TFTs) with capacitors. This technology allows pixels to retain
their charge. So, they don't make the screen blurry when images move fast
on the screen as well as are mor e efficient than passive -matrix displays.



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21 3) LED monitor -

The LED monitor is an improved version of an LCD monitor. It also has a
flat panel display and uses liquid crystal display technology like the LCD
monitors. The difference between them lies i n the source of light to
backlight the display. The LED monitor has many LED panels, and each
panel has several LEDs to backlight the display, whereas the LCD
monitors use cold cathode fluorescent light to backlight the display.
Modern electronic devices such as mobile phones, LED TVs, laptop and
computer screens, etc., use a LED display as it not only produces more
brilliance and greater light intensity but also consumes less power.
4) Plasma Monitor -

The plasma monitor is also a flat panel display tha t is based on plasma
display technology. It has small tiny cells between two glass panels. These
cells contain mixtures of noble gases and a small amount of mercury.
When voltage is applied, the gas in the cells turns into a plasma and emits
ultraviolet li ght that creates images on the screen, i.e., the screen is
illuminated by a tiny bit of plasma, a charged gas. Plasma displays are
brighter than liquid crystal displays (LCD) and also offer a wide viewing
angle than an LCD.
Plasma monitors provide high res olutions of up to 1920 X 1080, excellent
contrast ratios, wide viewing angle, a high refresh rate and more. Thus,
they offer a unique viewing experience while watching action movies,
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22 1.6.2 Printer - A printer produces hard copies of the processed data. It
enables the user to print images, text or any other information onto the
paper.
Types of Printer :
1) Impact Printers - The impact printer uses a hammer or print head to
print the character or images onto the paper. The hammer or p rint head
strikes or presses an ink ribbon against the paper to print characters and
images.
Types of impact printer :
A) Character Printer - Character printer prints a single character at a
time or with a single stroke of the print head or hammer. It does not print
one line at a time. Today, these printers are not in much use due to their
low speed and because only the text can be printed.
Types of character printer :
i) Dot Matrix Printer -

Dot Matrix Printer is an impact printer. The characters and im ages printed
by it are the patterns of dots. These patterns are produced by striking the
ink soaked ribbon against the paper with a print head. The print head
contains pins that produce a pattern of dots on the paper to form the
individual characters. To p roduce color output, the black ribbon can be
changed with color stripes. The speed of Dot Matrix printers is around
200-500 characters per second.
ii) Daisy Wheel Printer
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23 It consists of a wheel or disk that has spokes or extensions and looks like a
daisy , so it is named Daisy Wheel printer. At the end of extensions,
molded metal characters are mounted. To print a character the printer
rotates the wheel, and when the desired character is on the print location
the hammer hits the disk and the extension hits the ink ribbon against the
paper to create the impression. It cannot be used to print graphics and is
often noisy and slow, i.e., the speed is very low, around 25 -50 characters
per second.
B) Line Printers - It is also a bar printer, prints one line at a time. It is a
high-speed impact printer as it can print 500 to 3000 lines per minute.
Types of Line Printer :
i) Drum Printer -

Drum printer is a line printer that is made of a rotating drum to print
characters. The drum has circular bands of character s on its surface. It has
a separate hammer for each band of characters. When you print, the drum
rotates, and when the desired character comes under the hammer, the
hammer strikes the ink ribbon against the paper to print characters. The
drum rotates at a very high speed and characters are printed by activating
the appropriate hammers. Although all the characters are not printed at a
time, they are printed at a very high speed. These printers are known to be
very noisy due to the use of hammering techniques .
ii) Chain Printer -
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24 Chain printer is a line printer that uses a rotating chain to print characters.
The characters are embossed on the surface of the chain. The chain rotates
horizontally around a set of hammers, for each print location one hammer
is provided, i.e., the total number of hammers is equal to the total number
of print positions.
The chain rotates at a very high speed and when the desired character
comes at the print location, the corresponding hammer strikes the page
against the ribbon and character on the chain.They can type 500 to 3000
lines per minute. They are also noisy due to the hammering action.
2) Non -Impact Printer : They print characters and images without direct
physical contact between the paper and the printing machinery. These
printers can print a complete page at a time, so they are also known as
page printers.
Types of Non -Impact printer :
i) Laser Printer :

A laser printer is a non -impact printer that uses a laser beam to print the
characters. The laser beam hits the dru m, which is a photoreceptor and
draws the image on the drum by altering electrical charges on the drum.
The drum then rolls in toner, and the charged image on the drum picks the
toner. The toner is then printed on the paper using heat and pressure. Once
the document is printed, the drum loses the electric charge, and the
remaining toner is collected. The laser printers use powdered toner for
printing instead of liquid ink and produce quality print objects with a
resolution of 600 dots per inch (dpi) or more .
ii) Inkjet Printer :
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25 The inkjet printer is a non -impact printer that prints images and characters
by spraying fine, ionized drops of ink. The print head has tiny nozzles to
spray the ink. The printer head moves back and forth and sprays ionized
drops o f ink on the paper, which is fed through the printer. These drops
pass through an electric field that guides the ink onto the paper to print
correct images and characters.
An inkjet printer has cartridges that contain ink. Modern inkjet printers are
color printers that have four cartridges containing different colors: Cyan,
Magenta, Yellow, and Black. It is capable of printing high -quality images
with different colors. It can produce print objects with a resolution of at
least 300 dots per inch (dpi).
1.6.3 Projector

A projector is an output device that enables the user to project the output
onto a large surface such as a big screen or wall. It can be connected to a
computer and similar devices to project their output onto a screen. It uses
light and lense s to produce magnified texts, images, and videos. So, it is
an ideal output device to give presentations or to teach a large number of
people.
Modern projects (digital projectors) come with multiple input sources such
as HDMI ports for newer equipment and VGA ports that support older
devices. Some projectors are designed to support Wi -Fi and Bluetooth as
well. They can be fixed onto the ceiling, placed on a stand, and more and
are frequently used for classroom teaching, giving presentations, home
cinemas, e tc.
1.6.4 Speakers
For audio output from a computer, devices like speakers are connected to
it. The computer processes the digital signals to analog and sends it to the
speakers.
1.7 CENTRAL PROCESSING UNIT (CPU)
It is also called a processor, central pro cessor, or microprocessor. It carries
out all the important functions of a computer. It receives instructions from
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26 It stores all important programs like operating systems and applicati on
software.
CPU also helps Input and output devices to communicate with each other.
Owing to these features of the CPU, it is often referred to as the brain of
the computer.
The clock speed of a CPU refers to the number of instructions it can
process in a second. It is measured in gigahertz. For example, a CPU with
a clock speed of 4.0 GHz means it can process 4 billion instructions in a
second.
CPU is installed or inserted into a CPU socket located on the motherboard.
Furthermore, it is provided with a h eat sink to absorb and dissipate heat to
keep the CPU cool and functioning smoothly.
Generally, a CPU has three components :
1) ALU (Arithmetic Logic Unit) - It is the arithmetic logic unit, which
performs arithmetic and logical functions. Arithmetic funct ions include
addition, subtraction, multiplication division, and comparisons. Logical
functions mainly include selecting, comparing, and merging the data.
2) Control Unit - It is the circuitry in the control unit, which makes use of
electrical signals to instruct the computer system for executing already
stored instructions. It takes instructions from memory and then decodes
and executes these instructions. So, it controls and coordinates the
functioning of all parts of the computer. The Control Unit's mai n task is to
maintain and regulate the flow of information across the processor. It does
not take part in processing and storing data.
3) Memory or Storage Unit - It is called Random access memory
(RAM). It acts as a temporary storage area that holds the d ata temporarily,
which is used to run the computer. It stores the data in binary format.
Binary format uses two symbols as 0 and 1, also known as bits. The
computer memory and computer data size is measured in bytes.
The following table shows a few measur ement units used in the digital
world.
1 bit Binary digit
8 bits 1 byte
1024 bytes 1 Kilo Byte (KB)
1024 KB 1 Mega Byte (MB)
1024 MB 1 Giga Byte (GB)
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27 1024 TB 1 Peta Byte (PB)
1024 PB 1 Exa Byte (EB)
1024 EB 1 Zetta Byte (ZB )
1024 ZB 1 Yotta Byte (YB)
1024 YB 1 Bronto Byte
1024 Bronto Byte 1 Geop Byte
* Geop Byte is the highest memory.
1.8 COMPUTER MEMORY

The computer memory holds the data and instructions needed to process
raw data and produce output. The computer mem ory is divided into a large
number of small parts known as cells. Each cell has a unique address
which varies from 0 to memory size minus one.
Computer memory is of two types :
1) Volatile (Random Access Memory) - It is a volatile memory, meaning
it does not store data or instructions permanently. When you switch on the
computer the data and instructions from the hard disk are stored in RAM.
CPU utilizes this data to perform the required tasks. As soon as you shut
down the computer the RAM loses all the da ta.
2) Non-volatile (Read Only Memory) - It is a non -volatile memory. It
means it does not lose its data or programs that are written on it at the time
of manufacture. So it is a permanent memory that contains all important
data and instructions needed to perform important tasks like the boot
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28 The secondary memory (hard disk) is referred to as storage not
memory.
1.8.1 RAM

RAM is a volatile memory, which means it does not store data or
instructions permanently. When you switch on the computer the data and
instructions from the hard disk are stored in the RAM, e.g., when the
computer is rebooted, and when you open a program, the operating system
(OS), and the program are loaded into RAM, generally from an HDD or
SSD. CPU utilizes this data to perfor m the required tasks. As soon as you
shut down the computer, the RAM loses the data. So, the data remains in
the RAM as long as the computer is on and lost when the computer is
turned off. The benefit of loading data into RAM is that reading data from
the RAM is much faster than reading from the hard drive.
RAM comes in the form of a chip that is individually mounted on the
motherboard or in the form of several chips on a small board connected to
the motherboard. It is the main memory of a computer. It is f aster to write
to and read from as compared to other memories.
A computer's performance mainly depends on the size or storage capacity
of the RAM. If it does not have sufficient RAM to run the OS and
software programs, it will result in slower performance. So, the more
RAM a computer has, the faster it will work.
Types of RAM :
1) Static RAM (SRAM) - The word static indicates that the memory
retains its contents as long as power is being supplied. However, data is
lost when the power gets down due to volat ile nature. SRAM chips use a
matrix of 6 -transistors and no capacitors.
Transistors do not require power to prevent leakage, so SRAM need not be
refreshed on a regular basis.
There is extra space in the matrix, hence SRAM uses more chips than
DRAM for the same amount of storage space, making the manufacturing
costs higher.
SRAM is thus used as cache memory and has very fast access.
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29 Characteristic of Static RAM are :
1) Long life
2) No need to refresh
3) Faster
4) Used as cache memory
2) Dynamic Ram (DRAM ) - DRAM, must be continually refreshed in
order to maintain the data. This is done by placing the memory on a
refresh circuit that rewrites the data several hundred times per second.
DRAM is used for most system memory as it is cheap and small. All
DRAMs are made up of memory cells, which are composed of one
capacitor and one transistor.
Characteristics of Dynamic RAM :
1) Short data lifetime
2) Needs to be refreshed continuously
3) Slower as compared to SRAM
4) Used as RAM
5) Smaller in size
1.8.2 ROM

ROM stands for Read Only Memory. The memory from which we can
only read but cannot write on it. This type of memory is non -volatile. The
information is stored permanently in such memories during manufacture.
A ROM stores instructions that are required to s tart a computer. This
operation is referred to as bootstrap.
ROM chips are not only used in the computer but also in other electronic
items like washing machines and microwave ovens.
Types of ROM :
1) PROM (Programmable Read only Memory) - PROM is a blank
version of ROM. It is manufactured as blank memory and programmed
after manufacturing. It is kept blank at the time of manufacturing. You can
purchase and then program it once using a special tool called a
programmer.To write data onto a PROM chip; a devi ce called PROM
programmer or PROM burner is used. The process or programming a
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30 cannot be modified later, so it is also called a one -time programmable
device.
For example, cell phones, video game consoles, medical devices etc.
2) EPROM (Erasable and Programmable Read Only Memory) -
EPROM is a type of ROM that can be programmed and erased many
times. The method to erase the data is very different; it comes with a
quartz window through which a specific frequency of ultraviolet light is
passed for around 40 minutes to erase the data. So, it retains its content
until it is exposed to ultraviolet light.
It needs a special device called a PROM programmer or PROM burner to
reprogram the EPROM.
For ex ample, It is used in some micro -controllers to store programs.
3) EEPROM (Electrically Erasable and Programmable Read Only
Memory) - ROM is a type of read only memory that can be erased and
reprogrammed repeatedly, up to 10000 times. It is also known as Fl ash
EEPROM as it is similar to flash memory. It is erased and reprogrammed
electrically without using ultraviolet light. Access time is between 45 and
200 nanoseconds. The data in this memory is written or erased one byte at
a time; byte per byte, whereas, in flash memory data is written and erased
in blocks. So, it is faster than EEPROM. It is used for storing a small
amount of data in computer and electronic systems and devices such as
circuit boards.
For example, the BIOS of a computer is stored in this memory.
1.8.3 Secondary Memory
The secondary storage devices which are built into the computer or
connected to the computer are known as a secondary memory of the
computer.
The secondary memory is accessed indirectly via input/output operations.
It is non -volatile, so it permanently stores the data even when the
computer is turned off or until this data is overwritten or deleted. The CPU
can't directly access the secondary memory. First, the secondary memory
data is transferred to primary memory then the C PU can access it.
Some of the secondary memory devices are as follows :
1) Hard Disk :
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31 The hard disk is also known as a hard drive. It is a rigid magnetic disc that
stores data permanently, as it is a non -volatile storage device. The hard
disk is located within a drive unit on the computer's motherboard and
comprises one or more platters packed in an air -sealed casing. The data is
written on the platters by moving a magnetic head over the platters as they
spin. The data stored on a computer's hard drive g enerally includes the
operating system, installed software, and the user's files and programs,
including pictures, music, videos, text documents, etc.
2) Solid -state Drive :

SSD (Solid State Drive) is also a non -volatile storage medium that is used
to ho ld and access data. Unlike a hard drive, it does not have moving
components, so it offers many advantages over SSD, such as faster access
time, noiseless operation, less power consumption, and more.
As the cost of an SSD has come down, it has become an ide al replacement
for a standard hard drive in desktop and laptop computers. It is also
suitable for notebooks, and tablets that don't require lots of storage.
3) Pen drive :

Pen drive is a compact secondary storage device. It is also known as a
USB flash d rive, thumb drive or a jump drive. It connects to a computer
via a USB port. It is commonly used to store and transfer data between
computers. For example, you can write a report using a computer and then
copy or transfer it in the pen drive. Later, you ca n connect this pen drive to
a computer to see or edit your report. You can also store your important
documents and pictures, music, videos in the pen drive and keep it at a
safe place.
Pen drive does not have movable parts; it comprises an integrated circu it
memory chip that stores the data. This chip is housed inside a plastic or
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32 ranges from 2 GB to 128 GB. Furthermore, it is a plug and play device as
you don't need additional drives, s oftware, or hardware to use it.
4) SD Card :

SD Card stands for Secure Digital Card. It is most often used in portable
and mobile devices such as smartphones and digital cameras. You can
remove it from your device and see the things stored in it using a computer
with a card reader.
There are many memory chips inside the SD card that store the data; it
does not have moving parts. SD cards are not created equal, so they may
differ from each other in terms of speed, physical sizes, and capacity. For
example, standard SD cards, mini SD cards, and micro SD cards.
5) Compact Disk (CD) :

Compact Disk is a portable secondary storage device in the shape of a
round medium disk. It is made of polycarbonate plastic. The concept of
CD was co -developed by Philips and Sony in 1982. The first CD was
created on 17 August 1982 at the workshop of Philips in Germany.
In the beginning, it was used for storing and playing sound recordings,
later it was used for various purposes such as for storing documents, audio
files, video s, and other data like software programs in a CD.
6) DVD :

DVD is short for digital versatile disc or digital video disc. It is a type of
optical media used for storing optical data. Although it has the same size
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33 for storing and viewing movies and to distribute software programs as
they are too large to fit on a CD. DVD was co -developed by Sony,
Panasonic, Philips, and Toshiba in 1995.
Types of DVDs :
1) DVD -ROM (Read -Only) : Thes e types of DVDs come with media
already recorded on them, such as movie dvds. As the name suggests, data
on these discs cannot be erased or added, so these discs are known as a
read-only or non -writable DVD.
2) DVD -R (Writable) : It allows you to record or write information to the
DVD. However, you can write information only once as it becomes a
read-only DVD once it is full.
3) DVD -RW (Rewritable or Erasable) : This type of discs can be erased,
written, or recorded multiple times.
1.8.4 Cache Memory
Cache memory is a high -speed memory, which is small in size but faster
than the main memory (RAM). The CPU can access it more quickly than
the primary memory. So, it is used to synchronize with high -speed CPUs
and to improve its performance.
Cache memory can on ly be accessed by CPU. It can be a reserved part of
the main memory or a storage device outside the CPU. It holds the data
and programs which are frequently used by the CPU. So, it makes sure
that the data is instantly available for the CPU whenever the CP U needs
this data.
In other words, if the CPU finds the required data or instructions in the
cache memory, it doesn't need to access the primary memory (RAM).
Thus, by acting as a buffer between RAM and CPU, it speeds up the
system performance.
1.9 COMPUT ER SOFTWARE
Software, which is abbreviated as SW or S/W, is a set of programs that
enables the hardware to perform a specific task.
All the programs that run the computer are software.
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34 The software can be of two types :
1) System Software : The system software is the main software that runs
the computer. When you turn on the computer, it activates the hardware
and controls and coordinates their functioning. The application programs
are also controlled by system software.
Examples of System Software :
Operating System : An operating system is the system software that
works as an interface to enable the user to communicate with the
computer. It manages and coordinates the functioning of hardware and
software of the computer. The commonly used operating s ystems are
Microsoft Windows, Linux etc.
Some other examples of system software include:
BIOS : It stands for basic input output system. It is a type of system
software, which is stored in Read Onl y Memory (ROM) located on the
motherboard. However, in advanced computer systems, it is stored in flash
memory. BIOS is the first software that gets activated when you turn on
your computer system. It loads the drivers of the hard disk into memory as
well as assists the operating system to load itself into the memory.
Boot Program : Boot refers to starting up a computer. When you switch
on the computer, the commands in the ROM are executed automatically to
load the boot program into memory and execute its i nstructions. The BIOS
program has a basic set of commands that enables the computer to perform
the basic input/output instructions to start the computer.
Assembler : It plays the role of a converter as it receives basic computer
instructions and converts t hem into a pattern of bits. The processor uses
these bits to perform basic operations.
Device driver : This system software controls hardware devices
connected to a computer. It enables the computer to use the hardware by
providing an appropriate interface . The kernel of a Computer's CPU
communicates with different hardware through this software. Operating
systems generally come with most of the device drivers.
2) Application Software - Application software is a set of programs
designed to perform a specifi c task. It does not control the working of a
computer as it is designed for end -users. A computer can run without
application software. Application software can be easily installed or
uninstalled as required. It can be a single program or a collection of s mall
programs. Microsoft Office Suite, Adobe Photoshop, and any other
software like payroll software or income tax software are application
software.
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35 Examples of Application Softwares :
1. Utility Software - It assists the Operating System to manage, org anize,
maintain and optimize the functioning of the computer system. Some of
the notable examples of utility software are anti -virus software,
compression tools, file management tools, disk management tools, etc.
2. Presentation Software - Presentation so ftware is one such category of
application program mainly used to create sequences of words and
pictures mainly used to conduct a public presentation of information.
Presentation software could be business presentation software and general
multimedia autho ring software, but it’s overall about tools that allow users
to create both professional -looking business presentations and general
multimedia presentations.
3. Spreadsheet Software - it is capable of organizing, storing and
analyzing data in tabular form. Often known as a spreadsheet program or
spreadsheet application, the software has succeeded in replacing several
paper -based systems, especially in the business world.
4. Database Software - The next in line among the different types of
software is the d atabase software. Popular examples of databases include
Oracle, MySQL, Microsoft SQL Server, PostgreSQL, MongoDB, and
IBM Db2.
5. Multimedia Software - It is one consisting of Photo editing, media
player, and video editing programs. In general multimedia software do
come pre -installed on some operating systems, are also available free
online, or taught in classrooms.
6. Word Processors - Word processor software is used to create text -
based documents. These types of software are mainly used to create
memos , faxes and letters, this software can be even considered for creating
reports and personalized pages on the web. Some of the popular examples
of Word Processing software are Google Docs, Microsoft Word, WordPad
and Notepad.
7. Web Browsers - Everyone who uses a computer, must know or know
about web browsers. Web browsers are an essential part because these
programmes allow you to browse the internet. They assist users in locating
and accessing info on the internet.
For example, Google Chrome, Internet Exp lorer, Microsoft Edge, Firefox,
Opera etc.
1.10 NETWORKING
1.10.1 Computer Network
Computer Network is a group of computers connected with each other
through wires, optical fibres or optical links so that various devices can
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36 The aim of the computer network is the sharing of resources among
various devices.
In the case of computer network technology, there are several types of
networks that vary from simple to complex level.
1.10.2 Components Of Computer Network

1) NIC(National interface card) - NIC is a device that helps the
computer to communicate with another device. The network interface card
contains the hardware addresses to identify the system on the network so
that it transfers the data to the correct d estination.
Types of NIC :
A) Wireless NIC : All the modern laptops use the wireless NIC. In
Wireless NIC, a connection is made using the antenna that employs the
radio wave technology.
B) Wired NIC : Cables use the wired NIC to transfer the data over the
medium.
2) Hub - Hub is a central device that splits the network connection into
multiple devices. When a computer requests for information from a
computer, it sends the request to the Hub. Hub distributes this request to
all the interconnected computers.
3) Switches - Switch is a networking device that groups all the devices
over the network to transfer the data to another device. A switch is better
than Hub as it does not broadcast the message over the network, i.e., it
sends the message to the device for which it belongs. Therefore, we can
say that the switch sends the message directly from source to the
destination.
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37 There are three types of cables :
A) Twi sted pair cable : It is a high -speed cable that transmits the data
over 1Gbps or more.
B) Coaxial cable : Coaxial cable resembles a TV installation cable.
Coaxial cable is more expensive than twisted pair cable, but it provides a
high data transmission spe ed.
C) Fibre optic cable : Fibre optic cable is a high -speed cable that
transmits the data using light beams. It provides high data transmission
speed as compared to other cables. It is more expensive as compared to
other cables, so it is installed at the government level.
5) Router - Router is a device that connects the LAN to the internet. The
router is mainly used to connect the distinct networks or connect the
internet to multiple computers.
6) Modem - Modem connects the computer to the internet over th e
existing telephone line. A modem is not integrated with the computer
motherboard. A modem is a separate part on the PC slot found on the
motherboard.
1.10.3 Uses Of Computer Network
1) Resource sharing : Resource sharing is the sharing of resources such
as programs, printers, and data among the users on the network without
the requirement of the physical location of the resource and user.
2) Server -Client model : Computer networking is used in the server -
client model. A server is a central computer used t o store the information
and maintained by the system administrator. Clients are the machines used
to access the information stored in the server remotely.
3) Communication medium : Computer networks behave as a
communication medium among the users. For exa mple, a company
containing more than one computer has an email system which the
employees use for daily communication.
4) E-commerce : Computer networks are important in businesses because
businesses need the internet. For example, amazon.com is doing thei r
business over the internet.
1.10.4 Transmission modes
The way in which data is transmitted from one device to another device is
known as transmission mode .
The transmission mode is also known as the communication mode.
Each communication channel has a di rection associated with it, and
transmission media provide the direction. Therefore, the transmission
mode is also known as a directional mode.
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38 The Transmission mode is divided into three categories :


A) Simplex mode :

In Simplex mode, the communicat ion is unidirectional, i.e., the data flows
in one direction.
A device can only send the data but cannot receive it or it can receive the
data but cannot send the data.
This transmission mode is not very popular as mainly communications
require the two -way exchange of data. The simplex mode is used in the
business field as in sales that do not require any corresponding reply.
For example, the radio station is a simplex channel as it transmits the
signal to the listeners but never allows them to transmit bac k, Keyboard
and Monitor are the examples of the simplex mode as a keyboard can
only accept the data from the user and monitor can only be used to display
the data on the screen.
B) Half -Duplex mode :

In a Half -duplex channel, direction can be reversed, i .e., the station can
transmit and receive the data as well.
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39 The entire bandwidth of the communication channel is utilized in one
direction at a time.
In half -duplex mode, it is possible to perform the error detection, and if
any error occurs, then the receiver requests the sender to retransmit the
data.
For example, a Walkie -talkie is an example of the Half -duplex mode. In
Walkie -talkie, one party speaks, and another party listens. After a pause,
the other speaks and the first party listens. Speaking simultaneously will
create a distorted sound which cannot be understood.
C) Full -duplex mode :

In Full duplex mode, the communication is bi -directional, i.e., the data
flow in both the directions.
Both the stations can send and receive the message simultaneously.
Full-duplex mode has two simplex channels. One channel has traffic
moving in one direction, and another channel has traffic flowing in the
opposite direction.
The Full -duplex mode is the faste st mode of communication between
devices.
For example, telephone networks are an example of full duplex mode,
when two people are communicating with each other by a telephone line,
both can talk and listen at the same time.
1.10.5 Connections
Two or more d evices connected to a link are called a network. A link is a
communication channel that transfers data from one device to another.
Types of connections :
A) Point -to-point - It provides a dedicated link between two devices. For
example, a computer connecte d to a printer.
B) Multi -point - More than two specific devices share a single link, also
known as multi -drop configuration. The networks having multipoint
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40 1.10.6 Computer Network Architecture
Computer Network A rchitecture is defined as the physical and logical
design of the software, hardware, protocols, and media of the transmission
of data. Simply it is how computers are organized and how tasks are
allocated to the computer.
Types of network architectures :

1) Peer -To-Peer network
Peer-To-Peer network is a network in which all the computers are linked
together with equal privilege and responsibilities for processing the data.
Peer-To-Peer network is useful for small environments, usually up to 10
computers.
Peer-To-Peer network has no dedicated server.
Special permissions are assigned to each computer for sharing the
resources, but this can lead to a problem if the computer with the resource
is down.

Advantages :
It is less costly as it does not contain any dedicated server.
If one computer stops working, other computers will not stop working.
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41 Disadvantages :
In the case of the Peer -To-Peer network, it does not contain the centralized
system . Therefore, it cannot back up the data as the data is different in
different locations.
It has a security issue as the device is managed itself.
2) Client/Server Network
Client/Server network is a network model designed for the end users
called clients, to access the resources such as songs, video, etc. from a
central computer known as Server.
The central controller is known as a server while all other computers in the
network are called clients. A server performs all the major operations such
as security a nd network management.
A server is responsible for managing all the resources such as files,
directories, printer, etc.
All the clients communicate with each other through a server. For
example, if client1 wants to send some data to client 2, then it first sends
the request to the server for the permission. The server sends the response
to client 1 to initiate its communication with client 2.

Advantages :
A Client/Server network contains the centralized system. Therefore we
can back up the data easily.
A Client/Server network has a dedicated server that improves the overall
performance of the whole system.
Security is better in Client/Server network as a single server administers
the shared resources.
It also increases the speed of sharing resources.
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42 Disa dvantages :
Client/Server network is expensive as it requires the server with large
memory.
A server has a Network Operating System(NOS) to provide the resources
to the clients, but the cost of NOS is very high.
It requires a dedicated network administrato r to manage all the resources.
1.10.7 Physical Topology
The Topology defines the structure of the network of how all the
components are interconnected to each other.

1) Bus Topology :

It is a multipoint, one long cable that acts as a backbone to link all the
devices on a network. It transmits data in only one direction and every
device is connected to a single cable. A dropline is a connection running
between the device and the main cable.
Advantages :
Low -cost cable : Nodes are directly connected to the cable without
passing through a hub. Therefore, the initial cost of installation is low.
Moderate data speeds : Coaxial or twisted pair cables are mainly used in
bus-based networks that support upto 10 Mbps.
Familiar technology : Bus topology is a fami liar technology as the
installation and troubleshooting techniques are well known, and hardware
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43 Limited failure : A failure in one node will not have any effect on other
nodes.
Disadvantages :
Extensive cabling : A bus topo logy is quite simple, but still it requires a
lot of cabling.
Difficult troubleshooting : It requires specialized test equipment to
determine the cable faults. If any fault occurs in the cable, then it would
disrupt the communication for all the nodes.
Signal interference : If two nodes send the messages simultaneously,
then the signals of both the nodes collide with each other.
Reconfiguration is difficult : Adding new devices to the network would
slow down the network.
Attenuation : Attenuation is a loss of signal that leads to communication
issues. Repeaters are used to regenerate the signal.
2) Ring Topology :

Each device has a dedicated point -to-point connection with only the two
devices on either side of it. A signal is passed along a ring in one
direction, from device to device, until it reaches its destination.
Each device in a ring incorporates a repeater. When a device receives a
signal intended for another device its repeater regenerates the bits and
passes them along.
Advantages :
Network Manag ement : Faulty devices can be removed from the network
without bringing the network down.
Product availability : Many hardware and software tools for network
operation and monitoring are available.
Cost : Twisted pair cabling is inexpensive and easily av ailable. Therefore,
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44 Reliable : It is a more reliable network because the communication
system is not dependent on the single host computer.
Disadvantages :
Difficult troubleshooting : It requires specialized test equipmen t to
determine the cable faults. If any fault occurs in the cable, then it would
disrupt the communication for all the nodes.
Failure : The breakdown in one station leads to the failure of the overall
network.
Reconfiguration is difficult: Adding new devic es to the network would
slow down the network.
Delay : Communication delay is directly proportional to the number of
nodes. Adding new devices increases the communication delay.
3) Star Topology :

Star topology is an arrangement of the network in which e very node is
connected to the central hub, switch or a central computer.
The central computer is known as a server , and the peripheral devices
attached to the server are known as clients . Hubs or Switches are mainly
used as connection devices in a physical star topology . Star topology is
the most popular topology in network implementation.
Advantages :
Efficient troubleshooting : Troubleshooting is quite efficient in a star
topology as compared to bus topology. In a bus topology, the manager has
to inspect the kilometers of cable. In a star topology, all the stations are
connected to the centralized network. Therefore, the network administrator
has to go to the single station to troubleshoot the problem.
Network control : Complex network control features can be easily
implemented in the star topology. Any changes made in the star topology
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45 Limited failure : As each station is connected to the central hub with its
own cable, therefore failure in one cable will not affect the enti re network.
Familiar technology : Star topology is a familiar technology as its tools
are cost -effective.
Easily expandable : It is easily expandable as new stations can be added
to the open ports on the hub.
Cost effective : Star topology networks are cos t-effective as it uses
inexpensive coaxial cable.
High data speeds : It supports a bandwidth of approx 100Mbps.
Disadvantages :
A Central point of failure : If the central hub or switch goes down, then
all the connected nodes will not be able to communica te with each other.
Cable : Sometimes cable routing becomes difficult when a significant
amount of routing is required.
4) Tree Topology :

Tree topology combines the characteristics of bus topology and star
topology.
A tree topology is a type of structur e in which all the computers are
connected with each other in hierarchical fashion.
The top -most node in tree topology is known as a root node, and all other
nodes are the descendants of the root node. There is only one path between
two nodes for the data transmission. Thus, it forms a parent -child
hierarchy.
Advantages :
Support for broadband transmission : Tree topology is mainly used to
provide broadband transmission, i.e., signals are sent over long distances
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46 Easily expandable : We can add the new device to the existing network.
Therefore, we can say that tree topology is easily expandable.
Easily manageable : In tree topology, the whole network is divided into
segments known as star networks which can be easily managed and
main tained.
Error detection: Error detection and error correction are very easy in a
tree topology.
Limited failure : The breakdown in one station does not affect the entire
network.
Point -to-point wiring : It has point -to-point wiring for individual
segments.
Disadvantages :
Difficult troubleshooting : If any fault occurs in the node, then it
becomes difficult to troubleshoot the problem.
High cost : Devices required for broadband transmission are very costly.
Failure : A tree topology mainly relies on the mai n bus cable and failure
in the main bus cable will damage the overall network.
Reconfiguration is difficult : If new devices are added, then it becomes
difficult to reconfigure.
5) Mesh Topology :

Mesh technology is an arrangement of the network in which computers are
interconnected with each other through various redundant connections.
There are multiple paths from one computer to another computer, every
device has a dedicated point -to-point link to every other device, dedicated
means that the link carri es traffic only between two devices it connects.
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47 For example, the Internet is an example of mesh topology, it is mainly
used for wireless networks.
Advantages :
Reliable : The mesh topology networks are very reliable as if any link
breakdown will not affect the communication between connected
computers.
Fast Communication : Communication is very fast between the nodes.
Easier Reconfiguration : Adding new devices would not disrupt the
communication between other devices.
isadvantages :
Cost : A mesh topology contains a large number of connected devices
such as a router and more transmission media than other topologies.
Management : Mesh topology network s are very large and very difficult
to maintain and manage. If the network is not monitored carefully, then
the communication link failure goes undetected.
Efficiency : In this topology, redundant connections are high that reduces
the efficiency of the net work.
Exercise Questions
Multiple Choice Questions.
1) _________________ is also known as a personal computer which is
used for general purpose.
a) Microcomputer b) Minicomputer c) Workstation
d) Mainframe
2) One of the following is not an input device.
a) Printer b) Scanner c) Biometrics d) Microphone
3) One of the following is not an output device.
a) Printer b) Speaker c) Light pen d) Projector
4) RAM is a _____________ memory.
a) non volatile b) vola tile c) software d) hardware
5) __________ is a device that helps the computer to communicate with
other devices.
a) NIC b) Hub c) Switch d) Modem
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48 True or False.
1) Router is a device that connects the LAN to the internet.
2) In Simplex mode communication is bi -directional.
3) Secondary memory is a non -volatile memory which stores data
permanently.
4) Clock speed of the CPU is measured in KB.
5) Special purpose computers are designed to perform general tasks.
Short answer or define.
1) Compute r
2) Memory
3) System software
4) Hub
5) Topology
Long answer questions.
1) Write a short note on generations of computers.
2) What are the types of computers?
3) Explain the basic structure of a PC.
4) What are the types of keyboard?
5) Explain types of s canners.
6) Write a short note on output devices.
7) Explain in brief types of memory.
8) What are the types of software?
9) Define computer networks.
10) What are the components of a data communication system?
11) Write a short note on :
a) Bus Top ology
` b) Ring Topology
c) Star Topology
d) Mesh Topology
12) What are transmission modes in networks?
13) Write a short note on peer to peer architecture.

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49 References :
1. www.geeksforgeeks.or g
2. www.tutorialspoint.com
3. www.javatpoint.com
4. www.computerhope.com
5. www.wikihow.com
6. homepage.cs.uri.edu
7. www.computerhistory.org
8. www.toppr.com




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50 2
OFFICE PRODUCTIVITY TOOLS
Unit Structure
2.0 Objectives
2.1 MS Word
2.2 MS Excel
2.3 Power Point
2.4 Use of Tools in Accounting
2.0 OBJECTIVES
By the end of this module, you should be able to :
1) Identify and name MS word toolbar
2) Create, save, e xport, format & print documents
3) Work with mail merge
4) Create & copy worksheets, create formulae
5) Work with different types of charts & print worksheet
6) Create presentations, adding animation in presentations
7) Apply themes, insert images and eff ects of animations
8) Identify & define vouchers, invoice, reports
2.1 MS WORD
1 Microsoft Word :
Microsoft Word 2016 is a word processing application that allows you to
create a variety of documents , including letters, resumes, and more.
1.1 The Word i nterface :
When we open Word for the first time, the Start Screen will appear. From
here, we will be able to create a new document , choose a template , and
access your recently edited documents .
From the Start Screen , locate and select the Blank document to access
the Word interface.
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1.2 Working with the Word environment
Like other recent versions, Word 2016 continues to use features like the
Ribbon and the Quick Access Toolbar where we will find commands to
perform common tasks in Word as well as Backst age view .
1.2.1 The Ribbon
Word uses a tabbed Ribbon system instead of traditional menus. The
Ribbon contains multiple tabs , which we can find near the top of the
Word window.

Each tab contains several groups of related commands . For example, the
Font group on the Home tab contains commands for formatting text in our
document.
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52 Some groups also have a small arrow in the bottom -right corner that we
can click for more options.

Showing and hiding the Ribbon :
If we find that the Ribbon takes up too much s creen space, we can hide it.
To do this, click the Ribbon Display Options arrow in the upper -right
corner of the Ribbon, then select the desired option from the drop -down
menu:

Auto -hide Ribbon : Auto -hide displays our document in full -screen mode
and co mpletely hides the Ribbon from view. To show the Ribbon, click
the Expand Ribbon command at the top of the screen.
Show Tabs : This option hides all command groups when they're not in
use, but tabs will remain visible. To show the Ribbon, simply click a ta b.
Show Tabs and Commands : This option maximizes the Ribbon. All of
the tabs and commands will be visible. This option is selected by default
when you open Word for the first time.

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53 1.3 Tell me feature :
The Tell Me feature works just like a regular sear ch bar : Type what we
want looking for, and a list of options will appear. We can then use the
command directly from the menu without having to find it on the Ribbon.

1.4 The Quick Access Toolbar
Located just above the Ribbon, the Quick Access Toolbar lets access
common commands no matter which tab is selected. By default, it shows
the Save , Undo , and Redo commands, but we can add other commands
depending on our needs.
To add commands to the Quick Access Toolbar :
1) Click the drop -down arrow to the right of the Quick Access
Toolbar .



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54 2) Select the command we want to add from the menu.



3) The command will be added to the Quick Access Toolbar.


1.5 The Ruler
The Ruler is located at the top and to the left of our document. It makes it
easier to adjust our document with precision. If we want, we can hide the
Ruler to create more screen space.
To show or hide the Ruler:
1) Click the View tab.


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55 2) Click the checkbox next to Ruler to show or hide the Ruler.


1.6 Backstage view
Backstage view gives you various options for saving, opening a file,
printing, and sharing your document. To access Backstage view, click the
File tab on the Ribbon .

Following options are available under File tab.

1.7 Create a new blank document :
When beginning a new project in Word, we will start with a new blank
document.
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56 1) Select the File tab to access Backstage view .


2) Select New , then click Blank document .

3) A new blank document will appear.
1.8 To create a new document from a template :
A template is a predesig ned document we can use to create a new
document quickly. Templates often include custom formatting and
designs , so they can save a lot of time and effort when starting a new
project.
1) Click the File tab to access Backstage view , then select New .
2) Seve ral templates will appear below the Blank document option.
We can also use the search bar to find something more specific. In our
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3) When we find something we like, select a template to preview it.
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58 4) A preview of the template will appear. Click Create to use the selected
template.

5) A new document will appear with the selected template .
1.9 Saving Document :
When we create a new document in Word, we need to know how to save it
so we can access and edit i t later.
A) Save and Save As :
Word offers two ways to save a file : Save and Save As .
These options work in similar ways, with a few important differences.
i) Save : When we save a file, we only need to choose a file name and
location the first time. Af ter that, we can click the Save command to save
it with the same name and location.
ii) Save As : It is used to create a copy of a document while keeping the
original. When we use Save As, we need to choose a different name
and/or location for the copied v ersion.
B) AutoRecover :
Word automatically saves our documents to a temporary folder while we
are working on them. If we forget to save our changes or if Word crashes,
we can restore the file using AutoRecover .
1) Open Word. If autosaved versions of a fil e are found, the Document
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59 2) Click to open an available file. The document will be recovered .

3) By default, Word autosaves every 10 minutes. If we are editing a
document for less than 10 minutes, Word may not creat e an autosaved
version.
4) If we don't see the file we need, we can browse all autosaved files from
Backstage view .
5) Select the File tab, click Manage Versions , then choose Recover
Unsaved Documents .

C) Exporting documents :
By default, Word documents are saved in the .docx file type. However,
there may be times when we need to use another file type , such as a PDF
or Word 97 -2003 document . It's easy to export our document from Word
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60 To export a document as a PDF file :
Export ing our document as an Adobe Acrobat document , commonly
known as a PDF file , can be especially useful if we are sharing a
document with someone who does not have Word. A PDF file will make it
possible for recipients to view but not edit the content of our document.
1) Click the File tab to access Backstage view , choose Export , then select
Create PDF/XPS .


2) The Save As dialog box will appear. Select the location where we want
to export the document, enter a filename , then click Publish.

To export a doc ument to other file types :
It may also find it helpful to export our document to other file types, such
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61 older version of Word or as a .txt file if we need a plain -text version of
our docu ment.
1) Click the File tab to access Backstage view , choose Export , then select
Change File Type .


2) Select a file type, then click Save As.

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62 3) The Save As dialog box will appear. Select the location where we want
to export the document, enter a filename , then click Save .
4) We can also use the Save as type drop-down menu in the Save As
dialog box to save documents to a variety of file types.

1.10 Compatibility Mode :
Sometimes we need to work with documents that were created in earlier
versions of Microsoft Word, such as Word 2010 or Word 2007. When we
open these types of documents, they will appear in Compatibility Mode .
Compatibility Mode disables certain features, so we will only be able to
access commands found in the program that was used to c reate the
document. For example, if we open a document created in Word 2007 we
can only use tabs and commands found in Word 2007.

To exit Compatibility Mode, we need to convert the document to the
current version type.
To convert a document :
If we want access to all Word 2016 features, we can convert the document
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63 1) Click the File tab to access Backstage view, then locate and select the
Convert command.

2) A dialog box will appear. Click OK to confirm the file upgrade.


3) The document will be converted to the newest file type.
1.11 Formatting documents :
Formatting documents include basic tasks such as add, delete, move text,
cut, copy, paste, adjusting text including font, size, color, text alignment,
find & replace in our document.
Using the insertion point to add text - The insertion point is the
blinking vertical line in our document. It indicates where we can enter text
on the page.
Blank document : When a new blank document opens, the insertion point
will appear in the top-left corner of the page. If we want, we can begin
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64

Adding spaces : Press the spacebar to add spaces after a word or in
between text.

New paragraph line : Press Enter on our keyboard to move the insertion
point to the next paragraph line.

Manual placement : Once we begin typing, we can use the mouse to
move the insertion point to a specific place in our document. Simply click
the location in the text where we want to place it.
Arrow keys : we can also use the arrow keys o n our keyboard to move the
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65 characters on the same line, while the up and down arrows will move
between paragraph lines . We can also press Ctrl+Left or Ctrl+Right to
quickly move betw een entire words. In a new blank document, we can
double -click the mouse to move the insertion point anywhere on the page.
To delete text : There are several ways to delete or remove text.
1) To delete text to the left of the insertion point, press the Backspace key
on our keyboard.
2) To delete text to the right of the insertion point, press the Delete key on
our keyboard.
3) Select the text we want to remove, then press the Delete key.
Copying and moving text : Word allows us to copy text that's already i n
our document and paste it in other places, which can save a lot of time and
effort. If we want to move text around in our document, we can cut and
paste.
1) Select the text you want to copy.

2) Click the Copy command on the Home tab. Alternatively, we can press
Ctrl+C on your keyboard.

3) Place the insertion point where we want the text to appear.
4) Click the Paste command on the Home tab. Alternatively, we can press
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5) The text will appear.

To cut and paste text :
1) Se lect the text you want to cut.

2) Click the Cut command on the Home tab. Alternatively, we can press
Ctrl+X on your keyboard.

3) Place your insertion point where you want the text to appear.
4) Click the Paste command on the Home tab. Alternatively, we can press
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5) The text will appear.

Undo and Redo : If we are working on a document and accidentally
delete some text. Word allows us to undo our most recent action when
we make a mistake like this.
To do this, locate and selec t the Undo command on the Quick Access
Toolbar. Alternatively, we can press Ctrl+Z on our keyboard. We can
continue using this command to undo multiple changes in a row.

By contrast, the Redo command allows us to reverse the last undo. We
can also access this command by pressing Ctrl+Y on your keyboard.

Symbols :
If we need to insert an unusual character that's not on our keyboard, such
as a copyright (©) or trademark (™) symbol, we can usually find them
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68 1) Place the insertion point where you want the symbol to appear.

2) Click the Insert tab.

3) Locate and select the Symbol command, then choose the desired
symbol from the drop -down menu. If we don't see the one we want, select
More Symbols .


4) The symbol will appear in the document.

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69 Change the font size :
1) Select the text you want to modify.

2) On the Home tab, click the Font size drop -down arrow. Select a font
size f rom the menu. If the font size we need is not available in the menu,
you can click the Font size box and type the desired font size, then press
Enter .




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70 3) The font size will change in the document.


4) We can also use the Grow Font and Shrink Font commands to change
the font size.

To change the font :
By default, the font of each new document is set to Calibri. However,
Word provides many other fonts to customize text.
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2) On the Home tab, click the drop -down arrow next to the Font box. A
menu of font styles will appear.
3) Select the font style we want to use.

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72 4) The font will change in the document.


When creating a professional document or a document that contains
multiple paragraphs, we need to select a font that's easy to read. Along
with Calibri, standard reading fonts include Cambria, Times New Roman,
and Arial.
To change the font color :
1) Select the text you want to modify.
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73 2) On the Home tab, click the Font Color drop-down arrow. The Font
Colo r menu appears.


3) Select the font color we want to use. The font color will change in the
document.

Our color choices aren't limited to the drop -down menu that appears.
Select More Colors at the bottom of the menu to access the Colors dialog
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The Bold, Italic, and Underline commands :
The Bold, Italic, and Underline commands can be used to help draw
attention to important words or phrases.
1) Select the text we want to modify.

2) On the Home tab, click the Bold ( B), Italic (I), or Underline ( U)
command in the Font group. In our example, we'll click Bold.


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75 3) The selected text will be modified in the document.


To change text case :
When we need to quickly change a text case, we can use the Change Ca se
command instead of deleting and retyping text.
1) Select the text we want to modify.
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76 2) On the Home tab, click the Change Case command in the Font group.
3) A drop -down menu will appear. Select the desired case option from the
menu.

4) The text case will be changed in the document.

To highlight text :
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77 1) Select the text you want to highlight.

2) From the Home tab, click the Text Highlight Color drop-down arrow.
The Highlight Color menu appears.


3) Select the desired highlight color . The selected text will then be
highlighted in the document.
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78 To remove highlighting, select the highlighted text, then click the Text
Highlight Color drop-down arrow, and Select No Color from the drop -
down menu.

To change text alignment :
By default, Word aligns text to the left margin in new documents.
However, there may be times when we want to adjust text alignment to the
center or right.
1) Select the text you want to modify.

2) O n the Home tab, select one of the four alignment options from the
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3) The text will be realigned in the document.

Justify : Justified text is equal on both sides. It lines up equally to the
right and left margins. Many newspapers and magazines use full
justification.
Find & Replace : When we are working with longer documents, it can be
difficult and time consuming to locate a specific word or phrase. Word can
automatically search our docu ment using the Find feature, and it allows us
to quickly change words or phrases using Replace.
To find text :
1) From the Home tab, click the Find command. Alternatively, you can
press Ctrl+F on your keyboard.

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80 2) The navigation pane will appear on the left side of the screen.
3) Type the text we want to find in the field at the top of the navigation
pane. In our example, we'll type the word we're looking for.

4) If the text is found in the document, it will be highlighted in yellow and
a preview of t he results will appear in the navigation pane. Alternatively,
you can click one of the results below the arrows to jump to it.


5) When you are finished, click the X to close the navigation pane. The
highlight will disappear.


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81 To replace text :
1) Fro m the Home tab, click the Replace command. Alternatively, you can
press Ctrl+H on your keyboard.

2) The Find and Replace dialog box will appear.
3) Type the text we want to find in the Find what: field.
4) Type the text we want to replace it with in the Replace with: field. Then
click Find Next.

5) Word will find the first instance of the text and highlight it in gray.
6) Review the text to make sure you want to replace it. In our example, the
text is part of the title of the paper and does not need to be replaced. We'll
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7) If we want to replace it, we can click Replace to change individual
instances of text. Alternatively, we can click Replace All to replace every
instance of the text throughout the document.
8) The text will be replaced.
9) When you're done, click Close or Cancel to close the dialog box.
Bulleted and numbered lists : It can be used in our documents to outline,
arrange, and emphasize text.
1) Select the text you want to format as a list.
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83 2) On the Home tab, click the drop -down arrow next to the Bullets
command. A menu of bullet styles will appear.


3) Move the mouse over the various bullet styles. A live preview of the
bullet style will appear in the document. Select the bullet s tyle you want to
use.

4) The text will be formatted as a bulleted list.

To create a numbered list : When we need to organize text into a
numbered list, Word offers several numbering options. We can format
your list with numbers, letters, or Roman numer als.
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84 1) Select the text you want to format as a list.

2) On the Home tab, click the drop -down arrow next to the Numbering
command. A menu of numbering styles will appear.

3) Move the mouse over the various numbering styles. A live preview of
the numbe ring style will appear in the document. Select the numbering
style you want to use.

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85 4) The text will format as a numbered list.

Restart a numbered list : If we want to restart the numbering of a list,
Word has a Restart at 1 option. It can be applied to numeric and
alphabetical lists.
1) Right -click the list item you want to restart the numbering for, then
select Restart at 1 from the menu that appears.
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86 2) The list numbering will restart.

Customizing bullets : Customizing the look of the bullets in our list can
help us emphasize certain list items and personalize the design of our list.
Word allows us to format bullets in a variety of ways. We can use symbols
and different colors, or even upload a picture as a bullet.
1) Select an existing list y ou want to format.

2) On the Home tab, click the drop -down arrow next to the Bullets
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3) The Define New Bullet dialog box will appear. Click the Symbol
button.

4) The Symbol dialog box will ap pear.
5) Click the Font drop -down box and select a font. The Wingdings and
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88 6) Select the desired symbol, then click OK.

7) The symbol will appear in the Preview section of the Define Ne w
Bullet dialog box. Click OK.
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89 8) The symbol will appear in the list.

To change the bullet color :
1) Select an existing list you want to format.
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90 2) On the Home tab, click the drop -down arrow next to the Bullets
command. Select Define New Bullet from the drop -down menu.

3) The Define New Bullet dialog box will appear. Click the Font button.
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91 4) The Font dialog box will appear. Click the Font Color drop -down box.
A menu of font colors will appear.
5) Select the desired color, then click OK.

6) The bullet color will appear in the Preview section of the Define New
Bullet dialog box. Click OK.

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92 7) The bullet color will change in the list.

Adding hyperlinks : Adding hyperlinks to text can provide access to
websites and email addresses directly from our document. There are a few
ways to insert a hyperlink into our document.
Hyperlinks have two basic parts : the address (URL) of the webpage and
the display text . For example, the address could be
http://www.popsci .com , and the display text could be Popular Science
Magazine .
When we create a hyperlink in Word, we would be able to choose both the
address and the display text.
Word often recognizes email and web addresses as we type and will
automatically format the m as hyperlinks after we press Enter or the
spacebar .
1) Select the text you want to format as a hyperlink.
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93 2) Select the Insert tab, then click the Hyperlink command.
(Alternatively, you can open the Insert Hyperlink dialog box by right -
clicking the sel ected text and selecting Hyperlink... from the menu that
appears.)


3) The Insert Hyperlink dialog box will appear. Using the options on the
left side, you can choose to link to a file, webpage , email address ,
document , or a place in the current document .
4) The selected text will appear in the Text to display : field at the top.
We can change this text if we want.
5) In the Address : field, type the address we want to link to, then click
OK.
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94 6) The text will then be formatted as a hyperlink.


Editing and removing hyperlinks : Once we have inserted a hyperlink,
we can right -click the hyperlink to edit, open, copy, or remove it.

To remove a hyperlink, right -click the hyperlink and select Remove
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1.12 Page Layout :
Word offers a variety of page layout and formatting options that affect
how content appears on the page. We can customize the page orientation,
paper size, and page margins depending on how we want our document to
appear.
Page orientation
Word offers t wo page orientation options : landscape and portrait .
1) Landscape means the page is oriented horizontally .
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96 2) Portrait means the page is oriented vertically .


To change page orientation :
1) Select the Layout tab.
2) Click the Orientation command in the Page Setup group.



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97 3) A drop -down menu will appear. Click either Portrait or Landscape to
change the page orientation.


4) The page orientation of the document will be changed.
Page size :
By default, the page size of a new document is 8.5 inches by 11 inches.
Depending on our project, we may need to adjust our document's page
size.
Word has a variety of predefined page sizes to choose from.
1) Select the Layout tab, then click the Size command.

2) A drop -down menu will appear. The current page size is highlighted.
Click the desired predefined page size .

3) The page size of the document will be changed.
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98 To use a custom page size :
Word also allows you to customize the page size in the Page Setup dialog
box.
1) From the Layout tab, click Size. Select More Paper Sizes from the
drop-down menu.

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99 3) Adjust the values for Width and Height , then click OK.

4) The page size of the document will be changed.

Page margins :
A margin is the space between the te xt and the edge of your document.
By default, a new document's margins are set to Normal , which means it
has a one -inch space between the text and each edge. Depending on our
needs, Word allows us to change our document's margin size.
Word has a variety of predefined margin sizes to choose from.
1) Select the Layout tab, then click the Margins command
.
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100 2) A drop -down menu will appear. Click the predefined margin size you
want.

3) The margins of the document will be changed.
To use custom margins :
Word also allows us to customize the size of our margins in the Page
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101 1) From the Layout tab, click Margins . Select Custom Margins from the
drop-down menu.

2) The Page Setup dialog box will appear.
3) Adjust the values for each margin, then click OK. munotes.in

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4) The margins of the document will be changed.
Alternatively, we can open the Page Setup dialog box by navigating to the
Layout tab and clicking the small arrow in the bottom -right corner of the
Page Setup group.



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103 1.13 Printing documents :
Once we have created our document, we may want to print it to view and
share our work offline . It's easy to preview and print a document in Word
using the Print pane.
1) Select the File tab. Backstage view will appear.

2) Select Print . The Print pane wi ll appear. We can also access the Print
pane by pressing Ctrl+P on your keyboard.



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104 To print a document :
1) Navigate to the Print pane, then select the desired printer .

2) Enter the number of copies we want to print.
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105 3) Select any additional settin gs if needed.

4) Click Print .


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106 Custom printing :
Sometimes we find it unnecessary to print our entire document, in this
case custom printing is more suitable for us. Word allows us to specify
exactly which pages we would like to print.
If we would lik e to print individual pages or page ranges, we need to
separate each entry with a comma (1, 3, 5 -7, or 10 -14 for example).
1) Navigate to the Print pane.
2) In the Pages: field, enter the pages we want to print.

3) Click Print .


1.14 Mail merge
Mail M erge is a useful tool that allows us to produce multiple letters,
labels, envelopes, name tags, and more using information stored in a list,
database, or spreadsheet. When performing a Mail Merge , we will need a
Word document (we can start with an existing one or create a new one)
and a recipient list , which is typically an Excel workbook .
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107 2) From the Mailings tab, click the Start Mail Merge command and
select Step -by-Step Mail Merge Wizard from the dr op-down menu.

3) The Mail Merge pane will appear and guide us through the six main
steps to complete a merge. The following example demonstrates how to
create a form letter and merge the letter with a recipient list .
Step 1 : From the Mail Merge task pan e on the right side of the Word
window, choose the type of document we want to create. In our example,
we'll select Letters. Then click Next: Starting document to move to Step 2.
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108 Step 2 : Select Use the current document, then click Next: Select
recipient s to move to Step 3 .

Step 3 : Now we need an address list so Word can automatically place
each address into the document. The list can be in an existing file, such as
an Excel workbook, or we can type a new address list from within the
Mail Merge Wizard .
1) Select Use an existing list , then click Browse to select the file.
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109 2) Locate your file, then click Open .

3) If the address list is in an Excel workbook, select the worksheet that
contains the list, then click OK.

4) In the Mail Merge Recipients dialog box, we can check or uncheck
each box to control which recipients are included in the merge. By default,
all recipients should be selected. When we are done, click OK.
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110 5) Click Next: Write your letter to move to Step 4.

If we don't have an exist ing address list, we can click the Type a new list
button and click Create , then type our address list manually.
Step 4 : Now we are ready to write our letter. When it's printed, each copy
of the letter will basically be the same; only the recipient data ( such as the
name and address) will be different. We will need to add placeholders for
the recipient data so Mail Merge knows exactly where to add the data.
To insert recipient data :
1) Place the insertion point in the document where you want the
informati on to appear.
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111 2) Choose one of the placeholder options. In our example, we'll select the
Address block .

3) Depending on your selection, a dialog box may appear with various
customization options. Select the desired options, then click OK.

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112 4) A place holder will appear in your document (for example, «Address
Block» ).


5) Add any other placeholders we want. In our example, we'll add a
Greeting line placeholder just above the body of the letter.







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113 6) When we are done, click Next: Preview your le tters to move to Step 5.

Step 5 : Preview the letters to make sure the information from the
recipient list appears correctly in the letter. We can use the left and right
scroll arrows to view each version of the document.


If everything looks correct, click Next: Complete the merge to move to
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114


Step 6 : Click Print to print the letters.
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115
1) A dialog box will appear. Decide if we want to print All of the letters,
the current document (record), or only a select group, then click OK. In
our exa mple, we'll print all of the letters.


2) The Print dialog box will appear. Adjust the print settings if needed,
then click OK. The letters will be printed.






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116 2.2 MS EXCEL
Microsoft Excel is an office use application designed by Microsoft.
It is one of the most suitable spreadsheet programs that help us to store
and represent the data in tabular form, manage and manipulate data, create
optically logical charts, and more.
Excel provides a worksheet to create a new document in it. We can save
the Excel file with the .xls extension.
2.1 Features of Microsoft Excel :
1) AutoFormat : It allows the Excel users to use predefined table
formatting options.
2) AutoSum : AutoSum feature helps us to calculate the sum of a row or
column automatically by in serting an additional formula for a range of
cells.
3) List AutoFill : It automatically develops cell formatting when a new
component is added to the end of a list.
4) AutoFill : This feature allows us to quickly fill cells with a repetitive or
sequential record such as chronological dates or numbers and repeated
documents. AutoFill can also be used to copy functions. We can also alter
text and numbers with this feature.
5) AutoShapes : AutoShapes toolbar will allow us to draw some
geometrical shapes, arrow s, flowchart items, stars, and more. With these
shapes, we can draw our graphs.
6) Wizard : It guides us to work effectively while we work by displaying
several helpful tips and techniques based on what we are doing. Drag and
Drop feature will help us to r eposition the record and text by simply
dragging the data with the help of the mouse.
7) Charts : This feature will help you to present the data in graphical form
by using Pie, Bar, Line charts, and more.
8) PivotTable : It flips and sums data in seconds a nd allows us to execute
data analysis and generate documents like periodic financial statements,
statistical documents, etc. We can also analyze complex data relationships
graphically.
9) Shortcut Menus : The shortcut menu helps users to get the work done
through shortcut commands that need a lengthy process.

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117 2.2 Excel Interface :
It is the main interface of an Excel worksheet, where we work and store
our data. This interface contains various components.

Quick Access Toolbar : It contains some common an d most used
commands of Excel, which users repeatedly need while working with
Excel. By default, Save, Undo, and Repeat commands are added in the
quick access toolbar.
It provides fast access to its users by adding most -used commands in it.
This quick acc ess toolbar is customizable. It means you can add other
commands, whichever you need most.
Add commands to the Quick Access toolbar :
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2) Select the command you wish to add in the q uick access toolbar from
the drop -down menu.

For more commands, which are not available here, click on More
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119 3) Here, we have selected the command Print Preview and Print that has
been added to the Quick Access toolbar alon g with other commands.

Excel Ribbon : Excel 2016 utilizes a tabbed Ribbon system instead of
traditional menus. The Ribbon includes multiple tabs, each with several
groups of commands. We will use these tabs to perform the most common
function in Excel.
File, Home, Insert, Page Layout, Formula, Data, Review, View, and
Help are the tabs consisting of the Excel ribbon.

Each tab of Excel Ribbon contains its related operations list. For
example , the formula tab contains all the mathematical, logical, text,
string, finance, Date, and time functions.
To minimize and maximize the Ribbon : The Ribbon is designed to
respond to our current function, but we can choose to minimize it if we
find that it takes up too much screen space.

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120 1) To click the Ribbon Display Options arrow in the upper -right corner of
the Ribbon.

2) Select the desired minimizing options from the drop -down menu.
Auto -hide Ribbon : Auto -hide shows our workbook in full -screen mode
and hides the Ribbon completely. To show the Ribbon , click the E xpand
Ribbon command at the top of the screen.
Show Tabs : This option hides all command groups when not in use, but
tabs will remain there. To show the Ribbon , simply click on any of the
tabs.
Show Tabs and Commands: This option maximizes the Ribbon. All of
the tabs and commands will always be visible to the user. This option is
selected by default when we open Excel for the first time.
Customize the Ribbon in Excel 2016 :
1) Right -click the Ribbon and then choose Customize the Ribbon from
the drop -down me nu.

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121 2) The Excel Options Dialog box will occur. Locate and select New Tab
or New group , whichever you want to add.

3) Now, select a command from the left panel and click the Add button to
the new customized tab/group. You can also drag the commands di rectly
into a group.
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122 4) When you are done adding commands, click OK. The commands will
be added to the Ribbon in a new tab like this.

Formula Bar : In the formula bar, we can enter or edit data, a formula, or
a function that will occur in a specific ce ll. It allows us to write the
function and formulas to manipulate the data.
In the image below, cell C1 is selected, and 2000 is entered into the
formula bar.

Name Box : The Name box presents the location or "name" of a selected
cell.
In the image below , cell B4 is selected. Note that cell B4 is where column
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The Backstage View (The File Menu) : Click the File tab on the Ribbon.
The Backstage view will emerge.

It is the backstage view of MS Excel and information about the option s it
contains.
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124 The Worksheet Views : Excel 2016 has a variety of displaying options
that change how our workbook is shown. We can choose to view any
workbook in the Normal view, Page Layout view, or Page Break view.
These views can be useful for several tasks, especially if we're planning to
print the spreadsheet.
To change the worksheet views, locate and choose the desired worksheet
view command in the bottom -right corner of the Excel window.

Zoom Control : To use a Zoom control, click and drag the sli der. The
number to the right of the slider reverses the zoom percentage. It is
presented at the bottom right corner of the Excel worksheet.

2.3 Creating Worksheet
We can choose to create a new worksheet either with a blank worksheet or
a predesigned tem plate or open an existing worksheet.
Create a new workbook :
1) Select the File tab. Backstage view will appear.

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125 2) Select New , then click Blank workbook .


3) A new blank workbook will appear.
To open existing worksheet :
1) Navigate to the Backstage view , then click Open .

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126 2) Select Computer , then click Browse . Alternatively, you can choose
OneDrive to open files stored on your OneDrive .

3) The Open dialog box will appear. Locate and select your workbook,
then click Open .


4) If we have opened the desired workbook recently, we can browse your
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To pin a workbook :
If we frequently work with the same workbook , we can pin it to
Backstage view for faster access.
1) Navigate to the Backstage view , then c lick Open . Your recently
edited workbooks will appear.

2) Hover the mouse over the workbook you want to pin. A pushpin icon
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3) The workbook will stay in Recent Workbooks. To unpin a workbook,
simply click the pushpin icon again.


Using templates :
A template is a predesigned spreadsheet we can use to create a new
workbook quickly. Templates often include custom formatting and
predefined formulas , so they can save our lot of time and effort when
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129 1) Click the File tab to access Backstage view .

2) Select New . Several templates will appear below the Blank workbook
option.
3) Select a template to review it.

4) A preview of the template will appear, along with additional
information on how the template can be used.
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6) A new workbook will appear with the selected template .
2.4 Rename a Worksheet
To rename our worksheet with a customized and appropriate name we can
follow below steps.
1) Right -click on the sheet tab for which you wish to change the name.
2) The toolbar window will appear. Choose the Rename option.

3) Type your preferred name. For instance, in the below screenshot, we
have renamed 'Sheet1' to Sales 2021.

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131 2.5 Copy a Worksheet
While working many times, the Excel users require copying and pasting
the data of one worksheet to another and making some changes. Excel
provides easy steps to copy the data of one worksheet to another.
1) Right -click on the sheet tab tha t we want to copy.
2) The toolbar window will appear. Click on the 'Move or Copy' option.

3) The 'Move or Copy' dialog box will be displayed. In the Before Sheet
section, select the ' move to end' option and make sure to check in the
'create a copy'.

4) Click OK. Our data will be copied to the new worksheet.

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132 2.6 Creating Formulae
One of the most powerful features in Excel is the ability to calculate
numerical information using formulas. Just like a calculator, Excel can
add, subtract, multiply, and div ide.
Excel uses standard operators for formulas, such as a plus sign for addition
(+), a minus sign for subtraction ( -), an asterisk for multiplication (*), a
forward slash for division (/), and a caret (^) for exponents.
All formulas in Excel must begin w ith an equals sign (=). This is because
the cell contains, or is equal to, the formula and the value it calculates.
While we create simple formulas in Excel using numbers (for example,
=2+2 or =5*5), most of the time we will use cell addresses to create a
formula. This is known as making a cell reference. Using cell references
will ensure that our formulas are always accurate because we can change
the value of referenced cells without having to rewrite the formula.
For example, In the formula below, cell A3 adds the values of cells A1
and A2 by making cell references:

When you press Enter, the formula calculates and displays the answer in
cell A3:

If the values in the referenced cells change, the formula automatically
recalculates:

By combining a mathe matical operator with cell references, we can create
a variety of simple formulas in Excel. Formulas can also include a
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To create a formula : In our example below, we'll use a simple f ormula
and cell references to calculate a budget.
1) Select the cell that will contain the formula. In our example, we'll select
cell D12.

2) Type the equals sign (=). Notice how it appears in both the cell and the
formula bar.
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134 3) Type the cell address of the cell we want to reference first in the
formula: cell D10 in our example. A blue border will appear around the
referenced cell.

4) Type the mathematical operator we want to use. In our example, we'll
type the addition sign (+).
5) Type the cell ad dress of the cell you want to reference second in the
formula: cell D11 in our example. A red border will appear around the
referenced cell.


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135 6) Press Enter on our keyboard. The formula will be calculated, and the
value will be displayed in the cell. If we select the cell again, the cell
displays the result, while the formula bar displays the formula.

7) If the result of a formula is too large to be displayed in a cell, it may
appear as pound signs (#######) instead of a value. This means the
column is not wide enough to display the cell content. Simply increase the
column width to show the cell content.
To create a formula using the point -and-click method : Instead of
typing cell addresses manually, we can point and click the cells we want to
include i n our formula. This method can save a lot of time and effort when
creating formulas. For example, we'll create a formula to calculate the cost
of ordering several boxes of plastic silverware.
1) Select the cell that will contain the formula. In our example , we'll select
cell D4.
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136 2) Type the equals sign (=).
3) Select the cell you want to reference first in the formula: cell B4 in our
example. The cell address will appear in the formula.

4) Type the mathematical operator you want to use. In our example, we'll
type the multiplication sign (*).
5) Select the cell you want to reference second in the formula: cell C4 in
our example. The cell address will appear in the formula.

6) Press Enter on your keyboard. The formula will be calculated, and the
value wi ll be displayed in the cell.
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137 Copying formulas with the fill handle : Formulas can also be copied to
adjacent cells with the fill handle, which can save a lot of time and effort if
we need to perform the same calculation multiple times in a worksheet.
The fill handle is the small square at the bottom -right corner of the
selected cell(s).
1) Select the cell containing the formula you want to copy. Click and drag
the fill handle over the cells you want to fill.

2) After you release the mouse, the formula w ill be copied to the selected
cells.

2.7 Various Formulae/Functions used in Excel :
1) SUM : The SUM() function, as the name suggests, gives the total of the
selected range of cell values. It performs the mathematical operation
which is addition.
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138 2) A VERAGE : The AVERAGE() function focuses on calculating the
average of the selected range of cell values. As seen from the below
example, to find the avg of the total sales, you have to simply type in
“AVERAGE(C2, C3, C4)”.

3) COUNT : The function COUNT() counts the total number of cells in a
range that contains a number. It does not include the cell, which is blank,
and the ones that hold data in any other format apart f rom numeric.

4) SUBTOTAL : The SUBTOTAL() function returns the subtotal in a
database. Depending on what you want, you can select either average,
count, sum, min, max, min, and others.

In the example above, we have performed the subtotal calculation on cells
ranging from A2 to A4. As you can see, the function used is
“=SUBTOTAL(1, A2: A4), in the subtotal list “1” refers to average.
Hence, the above function will give the average of A2: A4 and the answer
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139 Similarly, “=SUBTOTAL(4, A2: A4)” selects the cell with the maximum
value from A2 to A4, which is 12. Incorporating “4” in the function
provides the maximum result.

5) MODULUS : The MOD() function works on returning the remainder
when a particular number is divided by a divisor.

6) POWER : The function “Power()” returns the result of a number raised
to a certain power.

7) CEILING : Next, we have the ceiling function. The CEILING()
function rounds a number up to its nearest multiple of significance.


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140 8) FLOOR : Contrary to the Ceiling function, the floor function rounds a
number down to the nearest multiple of significance.

The nearest lowest multiple of 5 for 35.316 is 35.
9) CONCATENATE : This funct ion merges or joins several text strings
into one text string. In this example, we have operated with the syntax
=CONCATENATE(A25, " ", B25)

10) LEN : The function LEN() returns the total number of characters in a
string. So, it will count the overall ch aracters, including spaces and special
characters.

2.8 Creating Charts
It can be difficult to interpret Excel workbooks that contain a lot of data.
Charts allow us to illustrate our workbook data graphically, which makes
it easy to visualize comparisons and trends.
2.8.1 Types of charts : Excel offers many charts to represent the data in
different manners, such as - Pie charts, Bar charts, Line charts, Stock
charts, Surface charts, Radar charts, and many more. We can use them
according to our data and ana lysis.
Column Charts : A column chart is basically a vertical chart that is used
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141 types of data, but it is usually used for comparing the information. Excel
offers 2D and 3D column charts.

Line Chart : Line charts are most useful for showing trends. Using this
chart, you can easily analyze the ups and downs in your data over time. In
this chart, data points are connected with lines.

Bar chart : Bar charts are horizontal bars that work like column charts.
Unlike column charts, Bar charts are horizontally plotted. Or we can say
that bar charts and column charts are just opposite to each other.
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142 Area chart : Area charts are just like line charts. Unlike the line charts,
gaps are fil led with color in area charts. Area charts are easy to analyze the
growth in business as it shows ups and downs through line.

Pie chart : A pie chart is a rounded shape graph that is divided into slices
of pie. Using this chart, you can easily analyze da ta that is divided into
slices. It makes the data easy to compare the proportion. Pie chart is also
known as Doughnut chart.

Surface chart : Surface chart is actually a 3D chart that helps to represent
the data into a 3D landscape. These charts are best to use with a large
dataset. This chart allows displaying a variety of data at the same time. A
large dataset is not easy to represent using other charts. Surface charts
solve this problem that allows displaying large datasets using this 3D
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2.8.2 Insert Chart for data :
1) Select the cells you want to chart, including the column titles and row
labels. These cells will be the source data for the chart. In our example,
we'll select cells A1:F6.

2) From the Insert tab, click the desired Chart comm and. In our example,
we'll select Column.

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144 3) Choose the desired chart type from the drop -down menu.

4) The Selected chart will be inserted into the worksheet.

2.8.3 Chart Layout Styles
Excel allows you to add chart elements such as chart titles, le gends, and
data labels to make your chart easier to read.
To add a chart element, click the Add Chart Element command on the
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To edit a chart element, like a chart title, simply double -click the
placeholder and begin typing.


If we don't want to add chart elements individually, we can use one of
Excel's predefined layouts.
Simply click the Quick Layout command, then choose the desired layout
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146

Excel also inclu des several chart styles, which allow us to quickly modify
the look and feel of our chart.
To change the chart style, select the desired style from the Chart styles
group. We can also click the drop -down arrow on the right to see more
styles.

To change the chart type : If we find that our data isn't well suited to a
certain chart, it's easy to switch to a new chart type.
In our example, we'll change our chart from a column chart to a line chart.
1) From the Design tab, click the Change Chart Type comman d.

2) The Change Chart Type dialog box will appear. Select a new chart type
and layout, then click OK. In our example, we'll choose a Line chart.
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147

3) The selected chart type will appear.

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148 2.9 Using Tools
2.9.1 Flash fill : Flash fill in Excel automa tically combines data. Flash
only works when it recognizes a pattern.
Example 1 : Use flash fill in Excel to extract the numbers in column A
below.
1) First, tell Excel what you want to do by entering the value 4645 into
cell B1.

2) On the Data tab, in t he Data Tools group, click Flash Fill (or press
CTRL + E).

Result:

Example 2 : Use flash fill in Excel to join the last names in column A
below and the first names in column B below to create email addresses.
1) First, tell Excel what you want to do by entering a correct email address
in cell C1.
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149 2) On the Data tab, in the Data Tools group, click Flash Fill (or press
CTRL + E).

Result:

2.9.2 Sorting Data : Content can be sorted alphabetically, numerically,
and in many other ways.
Types of sorting : When sorting data, it's important to first decide if we
want the sort to apply to the entire worksheet or just a cell range.
Sort sheet organizes all of the data in our worksheet by one column.
Related information across each row is kept together when th e sort is
applied. In the example below, the Contact Name column (column A) has
been sorted to display the names in alphabetical order.

Sort range sorts the data in a range of cells, which can be helpful when
working with a sheet that contains several ta bles. Sorting a range will not
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150

To sort a sheet :
1) Select a cell in the column you want to sort by. In our example, we'll
select cell C2.

2) Select the Data tab on the Ribbon, then click the A -Z command to sort
A to Z, or the Z -A command to sort Z to A. In our example, we'll sort
A to Z.
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151 3) The worksheet will be sorted by the selected column. In our example,
the worksheet is now sorted by last name.

To sort a range :
1) Select the cell range you want to sort. In our example, we'll select cell
range G2:H6.

2) Select the Data tab on the Ribbon, then click the Sort command.
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152 3) The Sort dialog box will appear. Choose the column we want to sort by.
In our example, we want to sort the data by t he number of T -shirt orders,
so we'll select Orders.

4) Decide the sorting order (either ascending or descending). In our
example, we'll use Largest to Smallest.
5) Once we are satisfied with your selection, click OK.

6) The cell range will be sorted b y the selected column. In our example,
the Orders column will be sorted from highest to lowest. Notice that the
other content in the worksheet was not affected by the sort.

2.9.3 Filtering Data : Filters can be used to narrow down the data in your
worksh eet, allowing you to view only the information you need.
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153 To filter data :
In our example, we'll apply a filter to an equipment log worksheet to
display only the laptops and projectors that are available for checkout.
1) In order for filtering to work corr ectly, our worksheet should include a
header row , which is used to identify the name of each column.

2) Select the Data tab, then click the Filter command.


3) A drop -down arrow will appear in the header cell for each column.
4) Click the drop -down arr ow for the column we want to filter. In our
example, we will filter column B to view only certain types of equipment.

5) The Filter menu will appear.
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154

7) Check the boxes next to the da ta you want to filter, then click OK.
In this example, we will check Laptop and Projector to view only these
types of equipment.

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155 8) The data will be filtered , temporarily hiding any content that doesn't
match the criteria. In our example, only laptops and projectors are visible.

Filters are cumulative , which means we can apply multiple filters to help
narrow down our results.
2.9.4 Conditional Formatting : it provides another way to visualize data
and make worksheets easier to understand.
It allows us to automatically apply formatting such as colors , icons , and
data bars to one or more cells based on the cell value . To do this, we
need to create a conditional formatting rule.
For example, we have a worksheet containing sales data, and we'd like to
see which salespeople are meeting their monthly sales goals. The sales
goal is $4000 per month, so we'll create a conditional formatting rule for
any cells containing a value higher than 4000.
1) Select the desired cells for the conditional formatting rule.
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156 2) From the Home tab, click the Conditional Formatting command. A
drop-down menu will appear.
3) Hover the mouse over the desired conditional formatting type , then
select the desired rule from the menu that appears. In our example, we
want to highlight cells that are greater than $4000.

4) A dialog box will appear. Enter the desired value(s) into the blank
field.
In our example, we'll enter 4000 as our value.
5) Select a formatting style from the drop -down menu. In our example,
we'll choose Green Fill with Dark Green Text , then click OK.

6) The conditional formatting will be applied to the selected cells. In our
example, it's easy to see which salespeople reached the $4000 sales goal
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2.9.5 Freeze Pane : Excel includes several tools that make it easier to
view content from different parts of our workbook at the same time,
including the ability to freeze panes and split our worksheet.
We want to see certain rows or columns all the time in our worksheet,
especially header cells. By freezing rows or columns in place, we'll be
able to scroll through our content while continuing to view the frozen
cells.
1) Select the row below the row(s) we want to freeze. In our example, we
want to freeze rows 1 and 2, so we'll select row 3.





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158 2) On the View tab, select the Freeze Panes command, then choose
Freeze Panes from the drop -down menu.

3) The rows will be frozen in place, as indicated by the gray line. We can
scroll down the worksheet while continuing to view the frozen rows at the
top. In our exam ple, we've scrolled down to row 18.


2.10 Printing Review & Set up
When we want to print a workbook to view and share our data offline, we
will choose our page layout settings. To access the Print pane:
1) Select the File tab. Backstage view will appear.
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159 2) Select Print. The Print pane will appear.










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160 3) Navigate to the Print pane, then select the desired printer.

4) Enter the number of copies we want to print.
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161 5) Select any additional settings if needed.

6) Click Print.

Choosing a print a rea : Before we print an Excel workbook, it's
important to decide exactly what information we want to print.
A) To print active sheets : Worksheets are considered active when
selected.
1) Select the worksheet we want to print. To print multiple worksheets ,
click the first worksheet, hold the Ctrl key on our keyboard, then click any
other worksheets we want to select.
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162 2) Navigate to the Print pane.
3) Select Print Active Sheets from the Print Range drop -down menu.

4) Click the Print button.

B) To prin t the entire workbook :
1) Navigate to the Print pane.
2) Select Print Entire Workbook from the Print Range drop -down menu.

3) Click the Print button.
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163
C) To print a selection : In our example, we'll print the records for the
top 40 salespeople on the Central worksheet.
1) Select the cells we want to print.

2) Navigate to the Print pane.
3) Select Print Selection from the Print Range drop -down menu.

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164 4) A preview of your selection will appear in the Preview pane.

5) Click the Print button to print the selection.


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165 2.3 POWER POINT
PowerPoint, is a software program developed by Microsoft to produce
effective presentations. It is a part of Microsoft Office suite.
The program comprises slides and various tools like word processing,
drawing, graphin g and outlining. Thus it can display text, table, chart,
graphics and media in the slides.
We can save powerpoint files with the .pptx extension.
3.1 Creating Presentation
When beginning a new project in PowerPoint, we want to start with a new
blank presen tation.
1) Select the File tab to go to Backstage view .


2) Select New on the left side of the window, then click Blank
Presentation .

3) A new presentation will appear.

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166 3.2 Creating Slides
Every PowerPoint presentation is composed of a series of sli des.
When you insert a new slide, it will usually have placeholders to show us
where content will be placed. Slides have different layouts for
placeholders, depending on the type of information we want to include.
Whenever we create a new slide, we’ll nee d to choose a slide layout that
fits our content.

Placeholders can contain different types of content, including text, images,
and videos. Many placeholders have thumbnail icons we can click to add
specific types of content.
In the example below, the sl ide has placeholders for the title and content.
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167 To insert a new slide :
Whenever we start a new presentation, it will contain one slide with the
Title Slide layout. We can insert as many slides as we need from a variety
of layouts.
1) From the Home tab, click the bottom half of the New Slide command.

2) Choose the desired slide layout from the menu that appears.

3) The new slide will appear. Click any placeholder and begin typing to
add text. We can also click an icon to add other types of content, su ch as a
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168

Organizing Slides : The Slide Navigation pane on the left side of the
screen makes it easy to organize our slides. From there, we can duplicate,
rearrange, and delete slides in our presentation.

Duplicate slides : If we wan t to copy and paste a slide quickly, we can
duplicate it. To duplicate slides, select the slide we want to duplicate ,
right -click the mouse, and choose Duplicate Slide from the menu that
appears. We can also duplicate multiple slides at once by selecting t hem
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Move slides : It's easy to change the order of our slides. Just click and
drag the desired slide in the Slide Navigation pane to the desired position.

Delete slides : If we want to remove a slide from our presentation, we can
delete it. Simp ly select the slide we want to delete, then press the Delete
or Backspace key on our keyboard.
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170 Customizing slide layouts : Sometimes we may find that a slide layout
doesn't exactly fit our needs. PowerPoint makes it easy to adjust slide
layouts as needed.
Adjusting placeholders : Hover the mouse over the edge of the
placeholder and click (you may need to click the text in the placeholder
first to see the border). A selected placeholder will have a solid line
instead of a dotted line.

To move a placeholde r : Select the placeholder, then click and drag it to
the desired location.

To resize a placeholder : Select the placeholder we want to resize. Sizing
handles will appear. Click and drag the sizing handles until the
placeholder is the desired size. We ca n use the corner sizing handles to
change the placeholder's height and width at the same time.

To delete a placeholder : Select the placeholder we want to delete, then
press the Delete or Backspace key on our keyboard.
To add a text box : Text can be ins erted into both placeholders and text
boxes. Inserting text boxes allows us to add to the slide layout. Unlike
placeholders, text boxes always stay in the same place, even if you change
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171 1) From the Insert tab, select the Text Box command.

2) C lick and drag to draw the text box on the slide.

3) The text box will appear. To add text, simply click the text box and
begin typing.

Using blank slides : If we want even more control over our content, we
may prefer to use a blank slide, which contain s no placeholders. Blank
slides can be customized by adding our own text boxes, pictures, charts,
and more.
1) To insert a blank slide, click the bottom half of the New Slide
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172


To play the presentatio n : Once we have arranged our slides, we may
want to play our presentation.
1) Click the Start From Beginning command on the Quick Access
Toolbar to see our presentation.


2) The presentation will appear in full -screen mode.
3) We can advance to the nex t slide by clicking your mouse or pressing
the spacebar on our keyboard. Alternatively, we can use the arrow keys
on our keyboard to move forward or backward through the presentation.
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173
To change the slide siz e : By default, all slides in PowerPoint 2013 use a
16-by-9 or widescreen aspect ratio. Widescreen slides will work best with
widescreen monitors and projectors.
1) Select the Design tab, then click the Slide Size command. Choose the
desired slide size fr om the menu that appears, or click Custom Slide Size
for more options.


To format the slide background : By default, all slides in our
presentation use a white background. Backgrounds can have a solid,
gradient, pattern, or picture fill.
1) Select the Design tab, then click the Format Background command.

2) The Format Background pane will appear on the right. Select the
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174 In our example, we'll use a Solid fill with a light gold color.

3) The background style of the selected slide will update.
4) If we want, we can click Apply to All to apply the same background
style to all slides in our presentation.


3.3 Themes
Themes give us a quick and easy way to change the design of our
presentation. They control our primary color palette, basic fonts, slide
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175 work well together, which means we won't have to spend as much time
formatting our presentation.
Each theme uses its own set of slide layouts. These layouts contr ol the
way our content is arranged, so the effect can be dramatic. Different
themes also use different slide layouts, which can change the arrangement
of our existing placeholders.
1) Select the Design tab on the Ribbon, then click the More drop -down
arrow to see all of the available themes.

2) Select the desired theme .

3) The theme will be applied to our entire presentation .

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176 To apply Transitions : A transition can be as simple as fading to the next
slide or as flashy as an eye -catching effect. Powe rPoint makes it easy to
apply transitions to some or all of our slides, giving our presentation a
polished, professional look.
There are three categories of unique transitions to choose from, all of
which can be found on the Transitions tab.
1) Subtle : These are the most basic types of transitions. They use simple
animations to move between slides.


2) Exciting : These use more complex animations to transition between
slides. They are more visually interesting than Subtle transitions.

3) Dynamic Conten t : If we're transitioning between two slides that use
similar slide layouts, dynamic transitions will move only the placeholders,
not the slides themselves. When used correctly, dynamic transitions can
help unify our slides and add a further level of poli sh to our presentation.



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177 To apply a transition :
1) Select the desired slide from the Slide Navigation pane. This is the slide
that will appear after the transition.

2) Click the Transitions tab, then locate the Transition to This Slide group.
By def ault, None is applied to each slide.
3) Click the More drop -down arrow to display all transitions.



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178 3) Click a transition to apply it to the selected slide. This will
automatically preview the transition.


5) We can use the Apply To All command in the T iming group to apply
the same transition to all slides in our presentation.

To preview a transition : We can preview the transition for a selected
slide at any time using either of these two methods:
1) Click the Preview command on the Transitions tab.



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179 2) Click the Play Animations command in the Slide Navigation pane.

To modify the transition duration :
1) Select the slide with the transition we want to modify.
2) In the Duration field in the Timing group, enter the desired time for the
transition . In this example, we'll decrease the time to half a second or
00.50 to make the transition faster.


To add sound :
1) Select the slide with the transition we want to modify.
2) Click the Sound drop -down menu in the Timing group.
3) Click a sound to appl y it to the selected slide, then preview the
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180


Slide Views : PowerPoint includes several different slide views, which are
all useful for various tasks. The slide view commands are located in the
bottom -right of the PowerPoint window.
There are four main slide views.
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181 1) Normal view : This is the default view, where we create and edit slides.
We can also move slides in the Slide Navigation pane on the left.

2) Slide sorter view : In this view, we’ll see a thumbnail version of each
slide. We can drag and drop slides to reorder them quickly.

3) Reading view : This view fills the PowerPoint window with a preview
of our presentation. It includes easily accessible navigation buttons at the
bottom -right.
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182 4) Slide show view : This command will begin the presentation from the
current slide. We can also press F5 on our keyboard to start from the
beginning. A menu will appear in the bottom -left corner when we move
the mouse. These commands allow ou to navigate through the slides an d
access other features, such as the pen and highlighter.


Outline view : Outline view shows our slide text in outline form. This
allows us to quickly edit our slide text and view the content of multiple
slides at once. We could use this layout to review the organization of our
slide show and prepare to deliver our presentation.
1) From the View tab, click the Outline View command.

2) An outline of your slide text will appear in the slide navigation pane.
3) You can type directly in the outline to make changes to your slide text.

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183 3.4 Insert Image
Adding pictures can make our presentations more interesting and
engaging. We can insert a picture from a file on our computer onto any
slide. PowerPoint even includes tools for finding online pictures and
adding screenshots to our presentation.
1) Select the Insert tab, then click the Pictures command in the Images
group.

2) A dialog box will appear. Locate and select the desired image file, then
click Insert.

3) The picture will appear on the currently s elected slide.

Inserting screenshots : Screenshots are basically snapshots of our
computer screen. We can take a screenshot of almost any program,
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184 of an entire window or a screen cl ipping of part of a window in our
presentation.
1) Select the Insert tab, then click the Screenshot command in the Images
group.
2) The Available Windows from our desktop will appear. Select the
window we want to capture as a screenshot.


3) The screensh ot will appear on the currently selected slide.






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185 To insert a screen clipping :
1) Select the Insert tab, click the Screenshot command, then select Screen
Clipping.


2) A view of other open windows will appear. Click and drag to select the
area we want to capture as a screen clipping.

3.5 Animation
In PowerPoint, we can animate text and objects such as clip art, shapes,
and pictures. Animation or movement on the slide can be used to draw the
audience's attention to specific content or to make the slide easier to read.
Types of Animation :
1) Entrance : These control how the object enters the slide. For example,
with the Bounce animation the object will "fall" onto the slide and then
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186

2) Emphasis: These animations occur whil e the object is on the slide,
often triggered by a mouse click . For example, we can set an object to
spin when we click the mouse.


3) Exit : These control how the object exits the slide. For example, with
the Fade animation the object will simply fade a way.


4) Motion Paths : These are similar to Emphasis effects, except the
object moves within the slide along a predetermined path, like a circle .
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187 To apply an animation to an object :
1) Select the object you want to animate.
2) On the Animations tab, click the More drop -down arrow in the
Animation group.

3) A drop -down menu of animation effects will appear. Select the desired
effect.


4) The effect will apply to the object. The object will have a small
number next to it to show that it has an anima tion. In the Slide pane, a
star symbol also will appear next to the slide.


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188 5) At the bottom of the menu, we can access even more effects.

Effect options : Some effects will have options we can change. For
example, with the Fly In effect we can contro l which direction the object
comes from. These options can be accessed from the Effect Options
command in the Animation group.

To remove an animation :
1) Select the small number located next to the animated object.

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189 To preview animations : Any animation effects we have applied will
show up when we play the slide show. However, we can also quickly
preview the animations for the current slide without viewing the slide
show.
1) Navigate to the slide we want to preview.
2) From the Animations tab, click the Preview command. The animations
for the current slide will play.

3.6 Print Review & Set -up
PowerPoint presentations are designed to be viewed on a computer, there
may be times when we want to prin t them. We can even print custom
versions of a presentation, which can be especially helpful when
presenting our slide show. The Print pane makes it easy to preview and
print your presentation.
Print layouts : PowerPoint offers several layouts to choose fr om when
printing a presentation. The layout we choose will mostly depend on why
we are printing the slide show. Types of print layouts :
1) Full Page Slides : This prints a full page for each slide in your
presentation. This layout is most useful if we nee d to review or edit a
printed copy of our presentation.

2) Notes Pages : This prints each slide, along with any speaker notes for
the slide. If we have included a lot of notes for each slide, we could keep a
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190

3) Outline : This prints an overall outline of the slide show. We could use
this to review the organization of our slide show and prepare to deliver our
presentation.

4) Handouts : This prints thumbnail versions of each slide, with optional
space for notes. This layout is especially useful if we want to give our
audience a physical copy of the presentation. The optional space allows
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191

To access the Print pane :
1) Select the File tab. Backstage view will appear.


2) Select Print. The Print pane will appear.

3) Click the buttons in the interactive below to learn more about using the
Print pane. munotes.in

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4) We can also access the Print pane by pressing Ctrl+P on our keyboard.
To print a presentation :
1) Select the File tab. Backstage view will appear.


2) Select Print. The Print pane will appear.

3) Choose the desired printer and print range.
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5) When we are done modifying the settings, click Print.


2.4 USE OF TOOLS IN ACCOUNTING
4.1 Vouchers
A Voucher is an internal document used for supporting the entries in
accounting books.
It is treated as a redeemable transaction bond, has monetary value and is
useful for specific purposes.
Types of Accounting Vouche rs :
1) Cash Voucher – These vouchers get prepared by a firm solely for cash
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194 It can be a Debit Voucher that a firm prepares only for cash payments to
suppliers or vendors to purchase raw materials and semi -finished goods
for production, purchase of assets or payments of expenses.
It can also be a Credit Voucher that a firm prepares only for cash receipts
from customers or vendors to sell goods to the customer, sale of assets or
receipt of income.
2) Non -Cash Vouche r – These vouchers are also known as transfer
vouchers, and they are prepared for credit transactions only.
Examples of such transactions are credit purchase or sale of goods,
purchase or sale of fixed assets on credit, etc.
The preparation of vouchers de pends on how a transaction gets recorded
in the account books. Based on the complexity of a transaction, the
vouchers can be classified as follows :
A) Transaction Voucher – It is a voucher prepared by the firm when one
account gets debited and another acc ount gets credited for a transaction.
B) Compound Voucher – It is a voucher prepared by the firm for two
types of transactions. The first type is where more than one account gets
debited, but only one account gets credited for a transaction. And the
second type is where more than one account gets credited, but only one
account gets debited for a transaction.
C) Complex Voucher – It is a voucher prepared by a firm when multiple
accounts are debited and credited for a transaction.
4.1.1 Preparation of Voucher s
Vouchers includes various supporting documents, which are as follows :
1) The invoice that the supplier receives from the firm
2) The details of the supplier like name, address and contact number
3) The details of the payment like the amount, discounts or the due date of
payment
4) The details related to the initial purchase order that the company had
made with the supplier
5) The receipt with details of the transaction confirming that the company
had received the goods or the services as mentioned in th e invoice
6) The details of the ledger accounts related to the particular transaction
7) The signature of the company’s authorised signatory validating the
purchase of goods or services along with receipt of the payment
8) The proof of the payment that is in the documentation for the voucher
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195 4.1.2 Steps involved in the preparation of vouchers
1) The company gets in touch with the supplier to place an order for raw
materials or semi -finished goods. If the supplier agrees with the order’s
specifications and the amount, then the firm places the order with them.
2) The supplier prepares and sends the order consignment to the firm.
There is a quality control check to see if there are no defective or damaged
items in that consignment. The person/s responsible fo r quality control
also checks if the order matches the specifications.
3) After the firm is satisfied with the order, it creates a voucher for the
transaction with the relevant details and supporting documents.
4) The voucher and the supporting documents g et thoroughly checked by
both parties to ensure zero errors. Post that, the company pays the supplier
for the consignment.
4.2 Invoices
An invoice is a document given to the buyer by the seller to collect
payment. It includes the cost of the products purch ased or services
rendered to the buyer. Invoices can also serve as legal records, if they
contain the names of the seller and client, description and price of goods
or services, and the terms of payment.
4.2.1 Functions of invoices
Companies need to deliv er invoices in order to demand payments.
An invoice is a legally binding agreement showing both parties' consent to
the quoted price and payment conditions.
Other benefits of invoices :
1) Maintaining records : The most important benefit of an invoice is the
ability to keep a legal record of the sale. This makes it possible to find out
when a good was sold, who bought it, and who sold it.
2) Payment tracking : An invoice is an invaluable tool for accounting. It
helps both the seller and the buyer to keep track of their payments and
amounts owed.
3) Legal protection : A proper invoice is legal proof of an agreement
between the buyer and seller on a set price. It protects the merchant from
fraudulent lawsuits.
4) Easy tax filing : Recording and maintaining all sale invoices helps the
company report its income and ensure that it's paid the proper amount of
taxes.
5) Business analytics : Analyzing invoices can help businesses gather
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196 popular products, peak buying times, and more. This helps to develop
effective marketing strategies.
Example : Payment Voucher

4.2.2 Creating Invoice in Excel
1) Our invoice template is 3 columns wide. Column A: 417 pixels.
Column B: 70 pixels. Column C: 90 pix els. Click on the right border of a
column header to change the column width.






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197 2) Enter some data.

3) On the Home tab, in the Font group, we can use the different commands
to change font sizes, font styles, add borders, change background colors,
etc.
4) To remove the gridlines, select all cells by clicking on the square above
row 1 and to the left of column A and change the background color to
white.
5) On the Home tab, in the Alignment group, you can use the different
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6) Select the range C13:C32 and change the number format to Accounting.
7) Enter the TODAY function into cell C4.
8) Enter the SUM function into cell C32. To achieve this, select cell C32,
type =SUM(, select the range C13:C31, close with a ")" and press Enter. munotes.in

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4.3 Reports
Reports are financial documents that are integral to the success of any
business, large or small. Preparing accounting reports allows us to track
our financial history, project future revenue and have accurate records for
tax purposes. Many companies create accounting reports monthly and
some create additional reports for specific purposes.
4.3.1 Types of Reports
1) Income statement : It is a report that details overall e xpenses and
revenue to determine a company's overall net profit. Sometimes an income
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200 To prepare an income statement, accountants use data from ledgers and
accounting journals. The statement includes both prima ry and secondary
sources of income to get an accurate number. Similarly, primary and
secondary expenses are included in the income statement.
2) Cash flow statement : It shows where cash is coming from (cash flow
sources) and where cash is going (cash flow expenditures). This helps a
business see how well they are generating cash. Executives and decision -
makers can use this report to see where cash is coming from and then
where it is going, which could include : Business operations, Financing,
Investments
A cash flow statement measures the cash flow between two dates. To
prepare a cash flow statement, an accountant looks at the cash flow in
every account, which may include equity accounts, liability accounts,
expense accounts, revenue accounts and asset acco unts.
3) Balance sheet : It shows an ending balance at one specific point in
time. It often includes balances for assets, liability and equity. The balance
sheet gives the business an opportunity to evaluate its financial reserves as
well as liquid assets. It also helps potential investors or lenders see the
financial state of the company.
4.4 Calculation of interest
Interest refers to the cost of money borrowed from a lender. Usually a
percentage of the principal amount borrowed, interest can be either si mple
or compound.
Simple interest = principal * rate * terms;

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Explanation of FV function : FV function calculates compound interest
and returns the future value of an investment. To configure we need the
rate, the number of periods, the periodic payment, the present value.
To get the rate we use annual rate/periods or C6/C8.
To get the number of periods we use term * periods or C7 * C8.
There is no periodic payment, so we use 0.
The present value(pv) is input as a negative value, since $1000 ‘leaves our
wallet’ and goes to the bank during the term.
4.5 Calculation of Depreciation
Depreciation is defined as the reduction of the recorded cost of a fixed
asset in a systematic manner until the value of the asset b ecomes zero or
negligible.
Excel offers five different depreciation functions.
We consider an asset with an initial cost of $10,000, a salvage value
(residual value) of $1000 and a useful life of 10 periods (years).
1) SLN : The SLN (Straight Line) funct ion is easy. Each year the
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The SLN function performs the following calculation. Depreciation Value
= (10,000 - 1,000) / 10 = 900.00. If we subtract this value 10 times, the
asset depreciates from 10,000 to 1000 in 10 years

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203 2) SYD : The SYD (Sum of Years' Digits) function is also easy. As we
can see below, this function also requires the period number.

The SYD function performs the following calculations. A useful life of 10
years results in a sum of years of 10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 =
55. The asset loses 9000 in value. Depreciation value period 1 = 10/55 *
9000 = 1,636.36. Deprecation value period 2 = 9/55 * 9000 = 1,472,73,
etc. If we subtract these values, the asset depreciates from 10,000 to 1000
in 10 years (figure after SLN)
4.6 Calculation of TDS
Tax Deducted at Source or TDS is the amount which is deducted from the
income of an individual by an authorised deductor and deposited to the IT
department.
For example, ABC Pvt Ltd has to make payment of Rs 1,00,000 to Mr.
XYZ for professional fees. TDS rate specified on professional fee is 10%.
TDS required to be deducted = 10% on Rs 1,00,000 = Rs 10,000
Net payment to Mr. XYZ = Gross Amount – TDS Deducted = Rs 1,00,000
– Rs 10,000 = Rs 90,000
TDS to be d eposited to Government by ABC Pvt Ltd = Rs 10,000
4.7 Calculation of Salary
Basic Salary is the base part of the total salary which doesn’t include any
other allowances. Overtime, bonus, medical allowance, etc. are not part of
the basic salary. Adding all other allowances to the basic salary comes out
the total salary received by an employee. So, the basic salary is a fixed
amount for an employee of a company.
CTC : CTC means ‘Cost To Company’ which indicates the total amount
of expenses a company spends o n an employee including the Gross Salary
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204 Pf : PF (Provident Fund) refers to the amount which is deducted from the
salary and put away in a PF account. It is designed to ensure enough funds
are saved to get an employee through retirement adequately.
Gross salary : is aggregate of the total amount of pay that an employee
will get in every month, it includes all the allowances including basic pay.
The simple definition of gross salary is basi c salary plus allowances like
dearness allowances, house rent allowances, medical allowances,
conveyance allowances, and special allowances, etc.
Example to calculate salary from Gross Salary :
1) Suppose, we have a data set of the Gross Salary of the empl oyers of a
company and the percentage of Gross Salary which will denote the Basic
Salary of the employees.

2) Enter formula for salary = gross salary * basic salary percentage or C5
* D5.


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205 3) Click ENTER and the desired output will come.

4) Now we c an drag the formula to every cell so that will get the basic
salary of every employee.

Similarly we can calculate salary from CTC, deducting pf etc.
4.8 Calculation of Taxes
In some regions, income tax is taken by the company accountant from
your income.
We can keep all details of our income, expenses, and expenditure in an
Excel worksheet.
From there we can easily calculate the income tax on the stored data.
Income tax is a tax taken by the central government on your income
earned during the financial year. This financial year starts from April 1
and ends on March 31 every year.
Income tax is a direct tax imposed on an individual or business,
Individual's income or business's profit.
Gross income & taxable income : Gross income is the income coming
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206 taxable income is extracted from the gross income by excluding
exemptions and deductions.
Example :
1) Open the Excel worksheet that contains the income details of someone.
We are usin g the following income dataset.

2) As we want to calculate the taxable income and tax. So, create two
rows: one for the taxable value and another for the tax.

3) Select a cell where you want to place the calculated result and subtract
the expenses (exe mptions and deduction) from the gross income. Write the
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4) Taxable income is now extracted from gross income, which is 2,19,000.
"Taxable income is on which we apply the tax."

"Tax is 5% on income below 2,50,000." As the taxable value is between
1.5 to 2.5 lakhs so that 5% will apply to income.
5) Now, calculate the tax on extracted taxable value. Apply the following
formula in cell
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6) Press the Enter key and get the inco me tax value calculated on the
taxable income. See that the returned tax value is 10,950.

Conclusion : Now, for this income, this user needs to pay 10950 rupees as
the income tax.
4.9 Calculation of Inventory
Inventory is basically products, goods, raw material which are not utilized
by the business and expected to be used. So basically, businesses produce
goods to sell in the market and the products which are still lying with the
business are part of the inventory.
Inventory is part of a company’s bala nce sheet and is categorized under
current assets. The reason is that it is expected that it will be sold in the
coming months.
If a company has too much inventory, it means that the company is not
able to sell the products and it can result in cash flow p roblems and
eventual losses because inventory will become obsolete.
On the other hand if it is very less, it means that business is not able to
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209 Another key point to keep in mind is that Inventory is reported at its cost
and not at its selling price.
Simple Example for inventory calculation : Let say company A has an
opening inventory balance of 50,000 for the month of July. During the
remaining financial year, the company has ma de purchases amounting
20,000 and during that time, on the company’s income statement, the cost
of goods sold is 40,000.

Ending Inventory = Beginning Inventory + Inventory Purchases –
Cost of Goods Sold

Ending inventory = 50,000 + 20,000 – 40,000
Endi ng inventory = 30,000
4.10 Calculation of Reconciliation
A bank reconciliation statement (BRS) is a statement of the document
which measures and compares the cash balance (respective company’s
balance sheet) to the corresponding amount on the respective b ank
statement. The main purpose to compare those accounts, i.e., to reconcile
those accounts is to identify whether there is any need for accounting
changes.
Bank reconciliation will be measured and closed at the regular interval of
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210 It helps the com pany or an organization to make sure that all their cash
records are correct. Thus, it is easy for a company to detect in case of any
cash manipulation or even fraud.
In simple words, a bank reconciliation statement (BRS) is a document that
will be prepare d for reconciling the dissimilarities between the balance as
per the passbook given respective date and cash books bank column.
Example : Let’s consider a company XYZ. XYZ has a balance as per the
passbook of $2000 as of 30th April 2021. It has a balance a s per the cash
book as of 30th April 2021 of $2150. Additional details are given below.
1) A cheque worth $500 was deposited. But it was not collected by the
bank.
2) Recorded – $100 as bank charge in the passbook. But it is not recorded
in the cash book.
3) $300 cheque worth has been processed and issued. But it is not
presented for payment.
4) Recorded – $150 as bank interest in a passbook. But it is not recorded
in the cash book.
Solution:




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211 Exercise Questions
Multiple Choice Questions.
1) The _____ ________ feature in MS word works just like a regular
search bar.
a) Tell me b) Show tabs c) Rular d) Backstage view
2) By default, word documents are saved in the _____________ file type.
a) .rtf b) .docx c) .txt d) .pdf
3) By default, exce l documents are saved in the _____________ file type.
a) .rtf b) .docx c) .xls d) .pdf
4) ____________ can provide access to websites and email addresses
directly from documents.
a) Hyperlink b) Page size c) mail merge d) margin
5) One of t he following is not a type of chart.
a) Line b) Bar c) Area d) Flash fill
True or False.
1) Charts in MS Excel help us to present data in graphical form.
2) The Ruler is located at the top and to the left of our document.
3) We cannot change the bu llet colors in MS Word.
4) Widescreen slides work best with monitors & projectors.
5) Voucher is a document given to the buyer by the seller to collect
payment.
Short answer or define.
1) Mail merge
2) AutoFill in MS excel
3) Formulae in MS excel
4) Condit ional formatting
5) Invoice
Long answers.
1) How to create a document in MS Word and save it?
2) Explain Mail Merge.
3) How to print documents?
4) What are features of MS Excel?
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212 6) Write a short note on inbuilt fu nctions.
7) How to create charts in MS Excel?
8) What are the types of charts?
9) How to sort & filter data?
10) Write a short note on conditional formatting in MS Excel.
11) Write a short note on :
a) Calculation of Salary
` b) TDS
c) Reconciliation & Inventory
d) Taxes
12) Write a short note on Presentations.
13) How to apply themes in presentations?
14) Write a short note on transitions.
15) What are the views of presentations?
16) How to insert images in slides?
17) How to appl y animations in slides?
18) Write a short note on vouchers, invoices & reports.
References :
1. https://edu.gcfglobal.org/en/
2. www.geeksforgeeks.org
3. www.tutorialspoint.com
4. www.javatpoint.com
5. www.udemy.com
6. www.computerhope.com
7. www.wikihow.com
8. www.techonthenet.com
9. www.investopedia.com
10. www.wallstreetmojo.com
11. www.accountingtools.com
12. www.profitbooks.net
13. www.zoho.com
14. www.datapine.com

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213 3
WEB
Unit Structure
3.0 Objectives
3.1 What is Internet? Definition, Uses, Working, Advantages and
Disadvantages
3.2 World Wide Web
3.3 What is Web Browser?
3.4 Information Searching Tools
3.5 Downloading
3.6 Create New email ID
3.7 Sending Data through e mail
3.8 Search Engine Optimisation
3.9 Exercise Questions
3.10 References
3.0 OBJECTIVES
After studying this chapter you should be able to understand.
 The difference between Internet and WWW
 Working and type of web browsers
 The different searching tool s
 Steps to download data from internet
3.1 WHAT IS INTERNET? DEFINITION, USES,
WORKING, ADVANTAGES AND
DISADVANTAGES
Internet is the foremost important tool and the prominent resource that is
being used by almost every person across the globe. It connects millions
of computers, webpages, websites, and servers. Using the internet we can
send emails, photos, videos, messages to our loved ones. Or in other
words, the internet is a widespread interconnected network of computers
and electronics devices(that supp ort internet). It creates a communication
medium to share and get information online. If your device is connected to
the Internet then only you will be able to access all the applications,
websites, social media apps, and many more services. Internet nowad ays
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214 Origin Of Internet: The internet came in the year 1960 with the creation
of the first working model called ARPANET (Advanced Research
Projects Agency). It allowed multiple compu ters to work on a single
network that was their biggest achievement at that time. ARPANET use
packet switching to communicate multiple computer systems under a
single network. In October 1969, using ARPANET first message was
transferred from one computer t o another. After that technology continues
to grow.
How is the Internet set up?
The internet is set up with the help of physical optical fiber data
transmission cables or copper wires and various other networking
mediums like LAN, WAN, MAN, etc. For access ing the Internet even the
2g, 3g, and 4g services and the wifi require these physical cable setup to
access the Internet. There is an authority named ICANN (Internet
Corporation for Assigned Names and Numbers) located in the USA which
manages the Internet and protocols related to it like IP addresses.
How does the internet works?
The actual working of the internet takes place with the help of clients and
servers. Here the client is a laptop that is directly connected to the internet
and servers are the comp uters connected indirectly to the Internet and they
are having all the websites stored in those large computers. These servers
are connected to the internet with the help of ISP (Internet Service
Providers) and will be identified with the IP address. Each website has its
Domain name as it is difficult for any person to always remember the long
numbers or strings. So, whenever you search any domain name in the
search bar of the browser the request will be sent to the server and that
server will try to find t he IP address from the Domain name because it
cannot understand the domain name. After getting the IP address the
server will try to search the IP address of the Domain name in a Huge
phone directory that in networking is known as a DNS server (Domain
Name Server). For example, if we have the name of a person and you can
easily find the Aadhaar number of him/her from the long directory as
simple as that.
So after getting the IP address the browser will pass on the further request
to the respective server an d now the server will process the request to
display the content of the website which the client wants. If you are using
a wireless medium of Internet like 3g and 4g or other mobile data then the
data will start flowing from the optical cables and will fir st reach to towers
from there the signals will reach your cell phones and Pc’s through
electromagnetic waves. And if you are using routers then optical fiber
connecting to your router will help in connecting those light -induced
signals into electrical sign als and with the help of ethernet cables internet
reaches your computers and hence the required information.

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215 What is an IP address?
IP address stands for internet protocol address. Every PC/Local machine is
having an IP address and that IP address is pr ovided by the Internet
Service Providers (ISP’s). These are some sets of rules which govern the
flow of data whenever a device is connected to the Internet. It
differentiates computers, websites, and routers. Just like human
identification cards like Aadha ar cards, Pan cards, or any other unique
identification documents. Every laptop and desktop has its own unique IP
address for identification. It’s an important part of internet technology. An
IP address is displayed as a set of four -digit like 192.154.3.29 . Here each
number on the set ranges from 0 to 255. Hence, the total IP address range
from 0.0.0.0 to 255.255.255.255.
You can check the IP address of your Laptop or desktop by clicking on the
windows start menu ->then right click and go to network ->in t hat go to
status and then Properties their you can see the IP address. There are four
different types of IP addresses are available:
1. Static IP address
2. Dynamic IP address
3. Private IP address
4. Public IP address
3.2 WORLD WIDE WEB
The worldwide web is a collect ion of all the web pages, web documents
that you can see on the Internet by searching their URLs (Uniform
Resource Locator) on the Internet. For example, www.geeksforgeeks.org
is a URL of the GFG website and all the content of this site like webpages
and a ll the web documents are stored on the worldwide web. Or in other
words, the world wide web is an information retrieval service of the web.
It provides users a huge array of documents that are connected to each
other by means of hypertext or hypermedia lin ks. Here, hyperlinks are
known as electronic connections that link the related data so that users can
easily access the related information and hypertext allows the user to pick
a word or phrase from text, and using this keyword or word or phrase can
acces s other documents that contain additional information related to that
word or keyword or phrase. World wide web is a project which is created
by Timothy Berner’s Lee in 1989, for researchers to work together
effectively at CERN. It is an organization, name d World Wide Web
Consortium (W3C), which was developed for further development in the
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216 Difference between World Wide Web and Internet
Internet WWW
The Internet allows you to link
your computer to any other
computer on the planet. The World Wide We b is a
collection of information
accessible through the Internet.
The Internet is a worldwide
network of interconnected
computer networks that connect
devices using the TCP/IP
protocol. The World Wide Web refers to
HTML -formatted online material
that may be accessed using the
HTTP protocol.
The Internet can be compared
to a large bookstore. The web can be considered as a
store with a collection of books.
Internet is superset of WWW. The World Wide Web is a subset
of the Internet.
It first appeared in the late
1960s. Tim Berners -Lee, an English
scientist, created the World Wide
Web in 1989.
The Internet is mostly based on
hardware. In comparison to the Internet, the
WWW is more software -oriented.

Uses of the Internet
Some of the important usages of t he internet are:
1. Online Businesses (E -commerce): Online shopping websites have
made our life easier, e -commerce sites like Amazon, Flipkart, Myntra are
providing very spectacular services with just one click and this is a great
use of the Internet.
2. Cashles s transactions: All the merchandising companies are
offering services to their customers to pay the bills of the products online
via various digital payment apps like Paytm, Google pay, etc. UPI
payment gateway is also increasing day by day. Digital paymen t industries
are growing at a rate of 50% every year too because of the INTERNET.
3. Education: It is the internet facility that provides a whole bunch of
educational material to everyone through any server across the web. Those
who are unable to attend physi cal classes can choose any course from the
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217 home. High -class faculties are teaching online on digital platforms and
providing quality education to students with the help of the Inte rnet.
4. Social Networking: The purpose of social networking sites and
apps is to connect people all over the world. With the help of social
networking sites, we can talk, share videos, images with our loved ones
when they are far away from us. Also, we can c reate groups for discussion
or for meetings.
5. Entertainment: The Internet is also used for entertainment. There
are numerous entertainment options available on the internet like watching
movies, playing games, listening to music, etc. You can also download
movies, games, songs, TV Serial, etc., easily from the internet.
Advantages of the Internet
1. Online Banking and Transaction: The Internet allows us to
transfer money online by the net banking system. Money can be credited
or Debited from one account to the other.
2. Education, online jobs, freelancing: Through the Internet, we are
able to get more jobs via online platforms like Linkedin and to reach more
job providers. Freelancing on the other hand has helped the youth to earn a
side income and the best part i s all this can be done via INTERNET.
3. Entertainment: There are numerous options of entertainment online
we can listen to music, play games can watch movies, web series, listening
to podcasts, youtube itself is a hub of knowledge as well as entertainment.
4. New Job roles: The Internet has given us access to social media,
and digital products so we are having numerous new job opportunities like
digital marketing and social media marketing online businesses are
earning huge amounts of money just because the inter net being the
medium to help us to do so.
5. Best Communication Medium: The communication barrier has
been removed from the Internet. You can send messages via email,
Whatsapp, and Facebook. Voice chatting and video conferencing are also
available to help you to do important meetings online.
6. Comfort to humans: Without putting any physical effort you can
do so many things like shopping online it can be anything from
stationeries to clothes, books to personal items, etc. You can books train
and plane tickets onl ine.
7. GPS Tracking and google maps: Yet another advantage of the
internet is that you are able to find any road in any direction, areas with
less traffic with the help of GPS in your mobile.
Disadvantages of the Internet
1. Time wastage: Wasting too much time on the internet surfing on
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218 than wasting time on scrolling social media apps one should utilize that
time in doing something skillful and even more productive.
2. Bad impacts on health : Spe nding too much time on the internet
causes bad impacts on your health physical body needs some outdoor
games exercise and many more things. Looking at the screen for a longer
duration causes serious impacts on the eyes.
3. Cyber Crimes: Cyberbullying, spam, v iruses, hacking, and stealing
data are some of the crimes which are on the verge these days. Your
system which contains all the confidential data can be easily hacked by
cybercriminals.
4. Effects on children: Small children are heavily addicted to the
Intern et watching movies, games all the time is not good for their overall
personality as well as social development.
5. Bullying and spreading negativity: The Internet has given a free
tool in the form of social media apps to all those people who always try to
spread negativity with very revolting and shameful messages and try to
bully each other which is wrong.
Can You Use the Web Without the Internet?
It's not really possible to browse the web without using the internet. To
access a web resource (like a website) that's on another server, you have to
use the internet to connect to it. Otherwise, your device has no connection
to the network that the other device is on.
The Web is distinguished from other systems by its use of HTTP
(Hypertext Transfer Protocol), whic h in turn is just a system for
standardizing the use of HTML (HyperText Markup Language). HTML is
the language of the Web, and HTTP is the grammar rules for using it. In
the same way that English is the language of business or French the
language of love, HTML is the language of the Web.
Accessing the Web requires a Web browser (like Internet Explorer,
Chrome, Safari or Firefox) to make sense of HTML and allow Web pages
to display properly.
3.3 WHAT IS WEB BROWSER?
Web Browsers are software installed on yo ur PC. To access the Web, you
need a web browser, such as Netscape Navigator, Microsoft Internet
Explorer or Mozilla Firefox.
On the Web, when you navigate through pages of information, this is
commonly known as web browsing or web surfing.
There are some leading web browsers − Edge, Chrome, Firefox, and
Safari, but there are many others browsers available.
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219
Internet Explorer
Internet Explorer (IE) is a product from software giant Microsoft. This is
the most commonly used browser in the universe. This was introduced in
1995 along with Windows 95 launch and it has passed Netscape
popularity in 1998.
Google Chrome
This web browser is developed by Google and its beta version was first
released on September 2, 2008 for Microsoft Windows. Today, chrome is
known to be one of the most popular web browsers with its global share of
more than 50%.
Mozilla Firefox
Firefox is a new browser derived from Mozilla. It was released in 2004
and has grown to be the second most popular browser on the Internet.
Safari
Safari is a web browser developed by Apple Inc. and included in Mac OS
X. It was first released as a public beta in January 2003. Safari has very
good support for latest technologies like XHTML, CSS2 etc.
Opera
Opera is smaller and faster than most other browser s, yet it is full -
featured. Fast, user -friendly, with keyboard interface, multiple windows,
zoom functions, and more. Java and non Java -enabled versions available.
Ideal for newcomers to the Internet, school children, handicap and as a
front -end for CD -Rom and kiosks.
Konqueror
Konqueror is an Open Source web browser with HTML 4.01 compliance,
supporting Java applets, JavaScript, CSS 1, CSS 2.1, as well as Netscape
plugins. This works as a file manager as well as it supports basic file
management on local UNIX filesystems, from simple cut/copy and paste
operations to advanced remote and local network file browsing
What is a Web browser? [Definition]
A web browser is basically a client program that connects with
the webserver for any information as per the request of the user. After the
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220 and later it displays the results on the screen of the user. In the
background, the brow ser sends a request to the Web servers all across the
internet by using HTTP - Hypertext Transfer Protocol.
Features of Web Browser
These are most common features of web browsers.
1. Home button : The home button helps you to go to the predefined
homepage of any website.
2. Refresh button : You can reload the web pages of any website by
using the refresh button. At times due to the caching mechanism, you are
unable to know the updated information. In such cases, when you hit the
refresh button, you are able to see that particular information.
3. Stop button : if you wish to disconnect the connection between
the web browser and the server you can use the stop button. For instance,
if there is any outside at tack of malicious content on the browser, you can
protect yourself with the help of this button.
4. Web address bar : the space where you enter any web address is
known as the web address bar.
5. Bookmarks : bookmarks help you to save a particular website on
your device for later use.
6. Tabbed browsing : you can access multiple websites in a single
window with the help of tabbed browsing. For instance, whenever you
search for a topic on your browser, you get a list of options in front of you.
You can open several tab s by clicking right on every link. This is tabbed
browsing.
What is URL?
Every website has a unique address that is known as a uniform resource
locator or URL. It is like the address of your house, but instead of land, it
is on the internet. Whenever you t ype any URL in the address bar of the
browser and hit enter, the browser redirects you to the page tagged along
with that URL. For instance, www.abc.com.
A URL consists of the following:
● To access any resource, it uses the HTTP protocol.
● A fragment identif ier is used.
● It defines the location of any server with the help of IP addresses.
History of Web Browsers
The first -ever web browser was WORLD WIDE WEB, developed by Tim
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221 named the Lynx bro wser was launched. It had several limitations, for
instance, it was unable to display the graphical content.
Moving forward, in the year 1993, the first popular browser in the world
was introduced known as Mosaic. After improvising a few aspects,
Netscape Navigator came into the picture, in the year 1994. Then came the
Internet Explorer, launched by the tech giant Microsoft, in the year 1995.
A few years later in 2003, Apple launched its own browser known as
Safari, specially built for Mac computers. Later in 2004, Mozilla launched
Firefox. In 2008, the most popular browser of today, Google Chrome was
invented. After that, Opera Mini, a mobile -based browser, was released in
2011. In 2015, the Microsoft Edge browser entered the market.
Different types of web browser
There is an ample list of web browsers available for your use, but the most
common ones are here with an elaborated explanation. For instance,
Internet Explorer, Mozilla Firefox, Google Chrome, Safari, and Microsoft
Edge.
1. Internet Explorer
The soft ware giant Microsoft launched this product back in 1995. Internet
Explorer ruled the market at one time. It was one of the most popularly
used web browsers.
Features :
i. Smart search suggestion
ii. Enhanced performance
iii. 33 language support
iv. Reader mood to view a webpage
Microsoft has currently discontinued Internet Explorer.
2. Mozilla Firefox
Mozilla Firefox has managed to be on the list of most popular browsers
over the internet. It was launched in 2004. You can avail of this web
browser on Windows, Mac, as well as Linux operating systems.
Features :
i. High security and performance
ii. Fast page loading
iii. 75 language support
iv. Inbuilt download manager
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222 3. Google Chrome
Google Chrome is a web browser that has brought a tremendous
revolution in the history of web browsers. At present, it is the most widely
used browser. It is known for its strong browser performance.
Features :
i. Theme support
ii. Extremely fast and secure
iii. Fast page loading
iv. 50 language support
v. Incognito mode and new tabs
4. Safari
Apple Inc. invente d this web browser. By default, this web browser is
present on all Apple devices. Safari supports the latest technologies like
XHTML, CSS2, etc.
Features :
i. Smart address bar
ii. Full-screen video and geolocation
iii. Extended support for HTML5
iv. Tabbed browsing
v. Private browsing
5. Microsoft Edge
Microsoft Edge was invented by the tech giant Microsoft in 2015. It
replaced internet explorer as the default web browser on all its devices.
Features :
1) Implementation of Cortana
2) Reading view
3) Doodle on a web page
4) Integrated sha re panel
5) Newsfeed on the startup page
6. Opera
Opera is a powerfully packed full -featured web browser. It is smaller than
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223 smartphones. It uses the Java ME platform which is ideal for eve ryone as
it is user -friendly and fast.
7. Netscape Navigator
Netscape Navigator was released in 1994 by Netscape. Once internet
explorer hit the market, the usage of Netscape sharply decreased.
8. Tor browser
Tor works on the concept of onion routing. Onion rout ing has nested
layers that are responsible to encrypt data multiple times.
Features :
i. Cross -platform availability
ii. Anonymous usage of servers
iii. You can visit locked websites
iv. Does not reveal the IP of the source
v. Portable
3.4 Information Searching Tools
Intern et has in offer a variety of search tools such as search engines,
search directories to locate the information on web.
A search on web is a simple process and can be conducted by simply
issuing a query to the search tool. The search tool in return will loo k for
the information in its web based information databases and retrieves those,
which are relevant to the query. Searching is an iterative process i.e. one
needs to keep working on their query unless the exact information is
located.
The very first tool used for searching on the Internet was Archie. The
name stands for “archive” without the “v.” It was created in 1990 by Alan
Emtage, a student at McGill University in Montreal. Veronica (Very Easy
Rodent -Oriented Net -wide Index to Computerised Archives) an d Jughead
(Jonsy’s Universal Gopher Hierarchy Excavation And Display) were two
other popular search programs.
There are three basic types of search tools that most people use to find
what they are looking for on the Web: Search Engines, Subject Directories
and Meta Search Tools.
SEARCH ENGINES
Search engine is a tool for locating information from a collection. Search
engines uses information about the information (such as metadata,
catalogue) stored in the database to locate information. Sometimes they
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224 The search is done on pattern matching algorithm whether it is a database
or full text.
TYPES OF SEARCH TOOLS
Search Directory
Search directories are classified collections of documents. They are good
for searching with a context. These directories are good for browsing. In
subject directories, documents are pre classified by a person. Librarians’
Internet Index; Google Directory; Yahoo!; dmoz are some of the examples
of subjec t directories.
There are two basic types of directories:
❖ Academic and Professional Directories: These are often created and
maintained by subject experts to support the needs of researchers.
INFOMINE, from the University of California, is a good example of an
academic directory.
❖ Commercial Directories: These cater to the needs of general public.
Directories of Yahoo! and Google are examples of commercial directories.
Search Engines
World Wide Web is a network of several information databases. In recent
years, an exponential growth in these databases has made it difficult to
locate a particular piece of information. Internet offers a powerful tool
known as search engine to manage, filter and retrieve the information for
their users.
Search engines are automat ed tools for searching information from a
collection using metadata stored in the database of search engine. In other
words, it is an information retrieval system and assists in locating
information on web.
Google and Yahoo! are most popular search engines .
Meta -search Engines
Meta Search engines are online tools (search engines) which performs
simultaneous search on more than one search engine at a time. These
search engines aggregates the results into a single list and displays them
according to their sou rce. e.g. Dogpile is a metasearch engine and gets its
results from Google, Yahoo, MSN Search, Ask , About, MIVA,
LookSmart, and more.
Example: Dogpile, WebCrawler, Browsys
FEATURES OF SEARCH TOOLS
The searching tools follows pattern matching algorithm. The re are many
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225 Keyword Search
When searching is done using a keyword it is known as Keyword
searching. Keyword may occur at any place in the document or in the
metadata field. This kind of search has higher recall value.
Boolean Search
Logical AND, OR and NOT are known as Boolean operators. When
Boolean operators are used for searching it is known as Boolean search.
The operators are used for combining more than one word with c ertain
conditions. These kind of searching also known as Combinatorial search.
❖ AND
This operator will retrieve all the documents which contains all the
keywords occurring at both ends of the AND operator.
Syntax:

AND
Example : Library AND Information
Output:
1) The above query will retrieve only those documents which contains
both the terms
Library and Documentation
2) The precision in search is more. The number of documents retrieved
will be less hence less is the recall valu e.
❖ OR
This operator will retrieve all the documents which contains all the
keywords occurring at both ends of the OR operator.
Syntax: OR
Example: Library OR Information
Output:
1) The above query will retrieve all documents which contains both the
terms Library and Documentation
2) The recall in search is more. The number of documents retrieved will be
more but the precision in retrieved documents will be less.
❖ NOT or AND NOT
These operators increase the precision of the sea rch result. The query can
be made more specific by using these operators. Using the capitalised
AND NOT operator preceding a search term eliminates documents that
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226 Syntax
AND NOT
Example:
If user is looking for information on Drivers and do not want documents
that include information relating to the Screw Drivers the query could be
“Driver” AND NOT Screw.
Search Engine Components
Generally there are three basic components of a search engin e as listed
below:
Web Crawler
Database
Search Interfaces
Web crawler
It is also known as spider or bots. It is a software component that traverses
the web to gather information.
Database
All the information on the web is stored in database. It cons ists of huge
web resources.
Search Interfaces
This component is an interface between user and the database. It helps the
user to search through the database.
Search Engine Working
Web crawler, database and the search interface are the major component
of a search engine that actually makes search engine to work. Search
engines make use of Boolean expression AND, OR, NOT to restrict and
widen the results of a search. Following are the steps that are performed
by the search engine:
● The search engine looks for the keyword in the index for predefined
database instead of going directly to the web to search for the keyword.
● It then uses software to search for the information in the database.
This software component is known as web crawler.
● Once web crawler fi nds the pages, the search engine then shows the
relevant web pages as a result. These retrieved web pages generally
include title of page, size of text portion, first several sentences etc.
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227

Architec ture and Main components of Standard Search Engine Model

Following are the several search engines available today:
Search Engine Description
Google It was originally called BackRub. It is the most popular
search engine globally.
Bing It was launched in 2009 by Microsoft. It is the latest web -
based search engine that also delivers Yahoo’s results.
Ask It was launched in 1996 and was originally known as Ask
Jeeves. It includes support for match, dictionary, and
conversation question.
AltaVista It was lau nched by Digital Equipment Corporation in
1995. Since 2003, it is powered by Yahoo technology.
AOL.Search It is powered by Google.
LYCOS It is top 5 internet portal and 13th largest online property
according to Media Matrix.
Alexa It is subsidiary of Am azon and used for providing website
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228 3.5 DOWNLOADING
What is downloading?
Downloading is the transmission of a file or data from one computer to
another over a network, usually from a larger server to a user device.
Download can refer to the general transfer of data or to transferring a
specific file. It can also be called to download, DL or D/L.
All internet use requires downloading data. While browsing websites or
using apps, the computer or mobile device is downloading data. This dat a
could be the text, images or videos used on the pages or apps that users
visit. Most of this data is only kept for long enough for it to be used once
and then removed from the device.
When users want to keep the data on their device, they download the da ta
to it. This could be a file, document or app that they want to keep
permanently. When they download it, users make a copy of the data from
what is on the central computer, called the server.
In general use, the word download is used for both the process of copying
the data and for the resulting file. Download is also mostly used in the
context of copying data from a larger central server. While not a hard -and-
fast rule, if the data is moving between two peer client devices or between
two pieces of local data storage, such as from a compact disc to a hard
disk drive, it would be called transferring data and not downloading.
Taking data or a file from a client device and copying it to a server is
called an upload.
What is download speed?
Download speed is a measure of how much data can be transferred from
an arbitrary internet location to a user's device in a second. It is typically
measured in megabits per second (Mbps). The higher the number, the
faster the connection. The maximum capacity to transfer data of a wired or
wireless network in a certain amount of time is referred to as bandwidth.
For most home or personal internet connections, the upload speed is lower
than the download. This is because, for most people, they need to
download far more data than they need to upload, so downloads are
prioritized by the internet service provider (ISP). Businesses may benefit
from having the same upload speed as their download; this is called
having a symmetrical internet connection.
An ISP will advertise the fastes t possible theoretical download speed, but
many factors can affect real -world download speed. Older home
networking or Wi -Fi routers may not be able to provide fast enough
connections to support modern internet connections. Poor cellphone or
Wi-Fi signal s trength also results in slow downloads. In addition, the
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229 For example, large companies have many servers with exceptionally fast
internet connections that can support many devic es downloading at high
speed simultaneously. But smaller companies may only have one server
that is easily overwhelmed by many people trying to download something,
and the resulting download is slow.
What is the difference between download, cache and strea m?
When transferring a file to a device, such as for music or a video, users
may have the option to download, cache or stream it. While there is not a
hard-and-fast rule for how different companies use these terms, in general,
a download is a permanent cop y, a cache is a temporary copy and a stream
is only copied as it is used.
To download the data means to have a permanent copy. The full data is
kept on a local device. Usually, end users manage the copy and have
access to use it as much as they want. They may be able to copy it to
another device. An example download would be to save a copy of a
document to a device so it is always available.
A cached copy is generally a whole copy that is on the device, but it is
managed by the program and not the user. It may not be complete and may
require that the service be contacted before it can be used again. The
program decides how long the cache copy will exist and may delete it as
needed. Having cached data is beneficial because less data needs to be
transferred an d it makes the content available faster. Usually, the user will
not be able to use the data outside the program. An example of a cache
would be a music service having a cache so the songs don't need to
transfer data each time they are played or so that the y can be available for
offline playback.
A streamed copy is when the data is only sent to the device just before it
is needed and is not kept after it has been used. This is most often used for
music and movies. Often, only a few moments ahead of what is b eing
viewed is sent to the end -user device. The data is kept in a temporary
buffer before it is shown. Once the content is finished, the data is deleted.
If the person wants to view it again, another copy needs to be streamed
from the server. An example of a stream is when an online video service
sends the video data as it is needed, but if the internet is removed, the
stream ends.
Ways to download
There are a variety of ways to download data, including the following.
1. Hypertext Transfer Protocol (HTTP) downloads use the same
protocol as browsing websites to send the file data. It is the most popular
way to download files from the internet. All web browsers use this to
download files directly. HTTP does not support pausing or resuming
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230 2. File Transfer Protocol (FTP) is one of the oldest protocols for
downloading files. It is used by a dedicated program to log on to an FTP
server to browse and download. It can be used with passwords and be
encrypted by using FTP Secure.
3. Peer -to-peer (P2P) downloads use special clients and protocols to send
and receive files without a central host. A popular P2P protocol is
BitTorrent.
Download an app, file, or program from the Internet
How to download on a computer using different browsers ?
1) To i nitiate a download from a website, you must first click a
download link. A link is usually denoted by different -colored text with an
underline, but it may also be an icon or button.
2) After clicking a file link, the browser starts the download or asks
what t o do, depending on the browser you're using.
Below is additional information on how each modern browser handles
downloads.
✔ Google Chrome
1) After the download is completed, a prompt appears in the lower -left
corner of the browser window.

2) Click the downloade d file to open it.
✔ Mozilla Firefox
1) After the download has completed, a prompt appears in the center of
the browser window. Click Save File and select where to save the file on
your computer.
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231 2) After the file is saved, click the downloads progress icon in the
upper -right corner of the browser window, and then click the downloaded
file to open it.

Alternatively, press Ctrl+J to open the Downloads section of the Library.
3) In the Library window, double -click the downloaded file to open it.

✔ Internet Explore r
1) After the download is completed, a prompt appears at the bottom of
the browser window in the middle. Choose Run or Save to open the
downloaded media.




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232 2) Press Ctrl+J to view your downloads.

3) Click Run to open any of the downloaded files.
✔ Microsoft Ed ge
1) After the download has completed, press Ctrl+J to view your recent
downloads.

2) Click the downloaded file to open it.
✔ Opera
1) After clicking a download link, you are prompted to choose a
location where the file should be saved. Select a location and click Save.
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233 2) When the download completes, press Ctrl+J to view your recent
downloads.
3) In the window that appears, locate your downloaded file and click
the Run button to open it.

✔ Safari
1) Upon clicking a download link, you may be asked if you want to
allow dow nloads from the website. Click Allow.

2) After the download has completed, click the Downloads app in the
Dock, usually located next to the Trash app, to view your downloads.

3) Double -click the downloaded file to open it.
How to download on a smartphone or tablet ?
Depending on the type of phone or tablet follow the instructions given
below.
✔ Android phone or tablet
1) Open the Chrome browser.
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234 3) Tap and hold your finger on the file's download link unti l a menu of
options appears, then release your finger.
4) Tap the Download link or Download image option in the menu.
5) If necessary, tap the Download option again, which may be required
for some files to complete the download.
6) Open the Downloads or My Files ap p on your Android phone to
view the downloaded files.
✔ iPhone or iPad
1) Open the Safari browser.
2) Navigate to a web page containing a file you want to download.
3) Tap and hold your finger on the file's download link until a menu of
options appears, then release your finger.
4) Tap the Download Linked File option in the menu.
5) If a small window appears asking if you want to download the file,
tap Download.
6) To view the downloaded files, click the blue circle icon with a down -
pointing arrow inside, located to the right of the address bar.
7) A list of downloaded files is displayed. If compatible with the
iPhone, you can tap a file name to view it or execute the file.
3.6 CREATE NEW EMAIL ID
What is an Email Address?
An email address is the identification of an electronic ma ilbox. It has two
parts, namely, a local part and the domain. The local part usually contains
the username of the user while the domain name depends on what email
service provider you are using. The local part can contain words, numbers,
or periods while t he domain name depends on what kind of service
provider you are using.
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235 The topmost popular email providers are:
● G-mail
● Yahoo Mail
● Microsoft Outlook
● GMX Mail
● Zoho Mail
● iCloud
● AOL Mail
● ProtonMail
Here we will be talking about Gmail which is the most used email service.
It provides 15 GB of free storage. Each email sent can be of max 25 MB
size, including attachments. Attachment includes documents, photos, and
videos. If the total attachment size is more than 25 MB then they get
uploaded to Google drive the n their link is generated and gets written in
the message.
How to create your Email Address?
Step 1: Open Google Chrome on your desktop. Click on Gmail at the top
right corner under the bookmarks bar.
Step 2: Click on “ Create Account “.
Step 3: Fill in the credentials and click “ Next “.
Step 4: Provide your mobile number and click on “ Next “.
Step 5: Enter the verification code sent on the number provided. Click on
“Verify “.
Step 6: Fill in the details. Click on “ Next “.
Step 7: Click on “ Yes, I’m in “.
Step 8: Your email ID is now ready to use.
3.7 Sending Data through email.
Taking Gmail for reference :
On Desktop / Laptop
1.Open Gmail . Go to https://www.gmail.com/ in your computer's web
browser. This will open your Gmai l inbox if you're logged in.
● If you aren't logged into your Gmail account, enter your email
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236

2. Click “Compose” . It's in the upper -left side of your Gmail inbox.
Doing so opens a "New Message" window in the lower -right corner of the
page.
● If you're using the old version of Gmail, you'll click COMPOSE
here instead.

3. Enter the other person's email address . Click the "To" or
"Recipients" text box at the top of the New Message window, then type in
the email address of the person to whom you want to send your email.
● To add multiple email addresses, type in the first email address,
press Tab ↹, and repeat with the other email addresses.
● If you want to CC or BCC someone on the email, click either the Cc
link or the Bcc link in the far -right side of the "To" text field, then type the
email address you want to CC or BCC into the "Cc" or "Bcc" tex t field,
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237

4. Add a subject . Click the "Subject" text field, then type in whatever
you want the subject of the email to be.
● Typically speaking, an email subject describes the gist of the email's
message in a few words.




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238 5. Enter your email mes sage. In the large text box below the
"Subject" text box, type in whatever you want for your email message.

6. Format your email's text if needed . If you want to apply
formatting to your text (e.g., bolding, italics, or bullet points), highlight
the text to which you want to apply the formatting, then click one of the
formatting options at the bottom of the email window.
● For example, to bold a section of text, you would highlight the text
and then click B at the bottom of the email.

7. Attach a file if you li ke. To add a file from your computer, click the
"Attachments" pin icon at the bottom of the window, then select the file(s)
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239 ● You can add photos in this way, or you can upload photos directly to
the ema il's body by clicking the "Photos" icon at the bottom of the
window, clicking Upload , clicking Choose photos to upload , and
selecting photos as needed.


8. Click Send. It's a blue button in the bottom -left corner of the email
window. Doing so will send your email to the specified email address(es).

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240 On Mobile
1. Open Gmail. Tap the Gmail app icon, which resembles a red "M"
on a white background. This will open your Gmail inbox if you're logged
in.
● If you aren't logged in, select your account and/or enter your email
address and password to log in.

2. Tap the "Compose"
icon. It's in the bottom -right corner of the
screen. Doing so brings up a new message window.


3. Enter an email address. Tap the "To" text box, then type in the email
address of the person t o whom you want to send an email. munotes.in

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241 ● If you want to CC or BCC anyone on the email, tap
on the far -
right side of the "To" text box, tap either Cc or Bcc, and type in the email
address you want to use.


4. Enter a subject. Tap the "Subject" text box, then e nter the subject you
want to use.
● Generally, a subject summarizes the email in a few words.


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242 5. Enter your email's message. Tap the "Compose email" text box, then
type in whatever you want to use for your email.

6.Add files or photos if necessary. If you want to place a file or photo in
your email, do the following:
● Tap
at the top of the screen.
● Tap Camera roll (iPhone) or Attach file (Android).
● Select the photo or file you want to use.


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243 7. Tap the "Send"
icon. It's a paper plane -shaped icon in th e top -
right corner of the screen. Your email will be sent.

3.8 SEARCH ENGINE OPTIMISATION.
Search engine optimization (SEO) is the process of improving the ranking
(visibility) of a website in search engines. The higher (or more frequently)
a website is displayed in a search engine list (like Google), the more
visitors it is expected to receive.
SEO considers how search engines work, what people search for, and
which search terms (words) are typed. Optimizing a website may involve
editing the content to i ncrease its relevance to specific keywords.
Promoting a site to increase the number of links, is another SEO tactic.
Effective search engine optimization may require changes to the HTML
source code of a site and to the site content. SEO tactics should be
incorporated into the website development and especially into the menus
and navigation structure.
Why is SEO important?
1. To help gain more visitors: majority of users click on only the top
4-5 web pages appearing in search results, so it’s very important for a
website to appear in the top results of a search engine.
2. Important for social promotion of a website: if a website appears
in top results of a search engine such as Google, Bing, etc. then it gains
instant popularity and to some extent trust of a user.
3. It plays an important role in improving the business of a
commercial site: if two websites are selling the same product, for
example, both Myntra and Koovs focus on selling fashion clothing, then
the site having a better position in the search result of a search engine has
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244 4. Improving user experience: SEO doesn’t focus only on improving
search results but also on improving the user experience and usability of a
website so that a website is more appealing to a user.
Basic principles in the working of a Search Engine
Following are majority steps involved in the working of a search engine:
1. Crawling: Process of fetching all the web pages linked to a website.
This task is performed by a software, called a craw ler or a spider (or
Googlebot, in the case of Google).
2. Indexing: Process of creating index for all the fetched web pages
and keeping them into a giant database from where it can later be
retrieved. Essentially, the process of indexing is identifying the wo rds and
expressions that best describe the page and assigning the page to particular
keywords.
3. Processing: When a search request comes, the search engine
processes it, i.e. it compares the search string in the search request with the
indexed pages in the d atabase.
4. Calculating Relevancy: It is likely that more than one page
contains the search string, so the search engine starts calculating the
relevancy of each of the pages in its index to the search string.
5. Retrieving Results: The last step in search engin e activities is
retrieving the best matched results. Basically, it is nothing more than
simply displaying them in the browser.
3.9 EXERCISE QUESTIONS
Multiple Choice Questions.
1) The ______________ is a collection of all the web pages, web
documents that you can see on the Internet by searching their URLs on the
Internet.
a) worldwide web b) IP address c) Internet d) SEO
2) The Internet cannot be used for one of the following.
a) social network ing b) transactions c) education d) raining
3) Chrome is a w eb browser developed by ____________.
a) Google b) Mozilla c) Apple d) Microsoft
4) All the information on the web is stored in ______________.
a) database b) hard disk c) pendrive d) SSD
5) Download speed is measured in _________.
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245 True or False.
1) IP address is provided by the Internet Service Providers.
2) The Internet is a subset of WWW.
3) Safari is a web browser developed by google.
4) Downloading is the transmission of a file or data from one computer to
anoth er over a network.
5) FTP is a protocol for browsing the data.
Define or short answer.
1) IP address
2) Web browser
3) URL
4) Search Engine
5) Web crawler
Long answer.
1) What are the advantages & disadvantages of the internet?
2) What is meant by email ad dress and how to create it?
3) Write a short note on Search engine optimization.
4) Explain basic principles in search engines.
5) What are different types of web browsers?
3.10 REFERENCES :
1. www.geeksforgeeks.or g
2. www.makeuseof.com
3. www.pageonepower.com
4. www.tutorialspoint.com
5. www.monovm.com
6. www.egyankosh.ac.in
7. www.techtarget.com
8. www.computerhope.com
9. www.wikihow.com
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246 4
INTRODUCTION TO INTERNET AND
OTHER EMERGING TECHNOLOGIES
Unit Structure
4.0 Objectives
4.1 Introduction
4.2 Internet Components
4.3 Electronic Commerce
4.4 E -Commerce Applications
4.5 Electronic Data Exchange (Interchange) - EDI
4.6 Extranet
4.7 Electron ic Payment Systems
4.8 Risks and Security Considerations
4.9 Legal Issues
4.10 Other emerging technologies
4.11 Multiple Choice Questions.
4.12 References
4.0 OBJECTIVES
After studying this chapter you should be able to understand
● The basic of internet an d its components
● The use of ecommerce and security and risk associated with it
● The importance of Electronic Data Interchange
● The working of Electronic Payment System
4.1 INTRODUCTION
The Internet is at once a world -wide broadcasting capability, a mechanism
for information dissemination, and a medium for collaboration and
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247 The Internet is a global network of computers that allows people to send
email, view web sites, downl oad files such as mp3 and images, chat, post
messages on newsgroups and forums and much more.
The Internet was created by the Advanced Research Projects Agency
(ARPA) of the U.S. government in 1960's and was first known as the
ARPANet. At this stage the In ternet's first computers were at academic
and government institutions and were mainly used for accessing files and
to send emails. From 1983 onwards the Internet as we know it today
started to form with the introduction of the communication protocol
TCP/IP to ARPANet. Since 1983 the Internet has accommodated a lot of
changes and continues to keep developing. The last two decades has seen
the Internet accommodate such things as network LANs and ATM and
frame switched services. The Internet continues to evolv e with it
becoming available on mobile phones and pagers and possibly on
televisions in the future.
4.2 INTERNET COMPONENTS
There are three basic components of the internet.
1. Client : The data interaction primarily occurs between the client and
the server. The client requests data from the server. The client and server
may be situated very far from each other but are linked via a network.
2. Server : The main job of a server is to respond to the request of the
client. The device or programme is set up in the wa y that they provide the
appropriate information to the client. This functionality of client and
server works on a model called – call and response. The server performs
several tasks in order to deliver the right information for each request.
From investiga ting the client’s permission of data access to formatting
numerous responses in order to fetch the most accurate information, the
server performs so many functions within seconds.
3. Protocols : In the language of networking, protocols can be defined
as a set of rules that guide data transmission between computing devices.
These rules make sure that the data request is sent and received by the
client without any problem. The most important internet protocols are –
Transmission Control Protocol (TCP) and Intern et Protocol (IP).
Every single commuting device has its own unique IP address. These
unique addresses make it easier for computers to recognize each other.
The TCP/IP protocols make the data request and receiving possible
between two computers via server.
4.3 ELECTRONIC COMMERCE
Electronic commerce or e -commerce has been defined as the ability to
perform transactions involving the exchange of goods or services between
two or more parties using electronic tools and technique. Consumers can
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248 E-commerce uses key standards and technologies including Electronic
Data Interchange (EDI), Technical Data Interchange (TDI), Hypertext
Markup Language (HTML), Extensible Mark -up Language (XML ), and
the Standard for Exchange of Product model data (STEP). E -commerce is
made possible through the expanded technologies of the Internet, the
World Wide Web, and Value -Added Networks.
E-commerce transaction model can be in terms of business to business
(B2B), business to customer (B2C) or customer to customer (C2C).
4.4 E -COMMERCE APPLICATIONS
Most Common Applications of Ecommerce:
1. Retail and Wholesale
Ecommerce has numerous applications in this sector. E -retailing is
basically a B2C, and in some ca ses, a B2B sale of goods and services
through online stores designed using virtual shopping carts and electronic
catalogs. A subset of retail ecommerce is m -commerce, or mobile
commerce, wherein a consumer purchases goods and services using their
mobile de vice through the mobile optimized site of the retailer. These
retailers use the E -payment method: they accept payment through credit or
debit cards, online wallets or internet banking, without printing paper
invoices or receipts.
2. Online Marketing
This r efers to the gathering of data about consumer behaviors, preferences,
needs, buying patterns and so on. It helps marketing activities like fixing
price, negotiating, enhancing product features, and building strong
customer relationships as this data can be leveraged to provide customers
a tailored and enhanced purchase experience.
3. Finance
Banks and other financial institutions are using e -commerce to a
significant extent. Customers can check account balances, transfer money
to other accounts held by them or others, pay bills through internet
banking, pay insurance premiums, and so on. Individuals can also carry
out trading in stocks online, and get information about stocks to trade in
from websites that display news, charts, performance reports and analys t
ratings of companies.
4. Manufacturing
Supply chain operations also use ecommerce; usually, a few companies
form a group and create an electronic exchange and facilitate purchase and
sale of goods, exchange of market information, back office information
like inventory control, and so on. This enables the smooth flow of raw
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249 5. Online Booking
This is something almost every one of us has done at some time – book
hotels , holidays, airline tickets, travel insurance, etc. These bookings and
reservations are made possible through an internet booking engine or IBE.
It is used the maximum by aviation, tour operations and hotel industry.
6. Online Publishing
This refers to the digital publication of books, magazines, catalogues, and
developing digital libraries.
7. Digital Advertising
Online advertising uses the internet to deliver promotional material to
consumers; it involves a publisher, and an advertiser. The advertiser
provides the ads, and the publisher integrates ads into online content.
Often there are creative agencies which create the ad and even help in the
placement. Different types of ads include banner ads, social media ads,
search engine marketing, retargeting, po p-up ads, and so on.
8. Auctions
Online auctions bring together numerous people from various
geographical locations and enable trading of items at negotiated prices,
implemented with e -commerce technologies. It enables more people to
participate in auction s. Another example of auction is bidding for seats on
an airline website – window seats, and those at the front with more leg
room generally get sold at a premium, depending on how much a flyer is
willing to pay.
4.5 ELECTRONIC DATA EXCHANGE
(INTERCHANGE) - EDI
Electronic Data Exchange is the direct exchange of data and important
business documents through the Internet and in a very professional
manner. Two different companies sitting at the extreme corners of the
world can very easily interchange informati on or documents (like sales
orders, shipping notices, invoices, etc) with the help of EDI.
EDI Documents:
The most common documents exchanged via EDI are:
Invoices
Purchase Orders
Financial Information letters
Transaction Bills
Shipping requests and notifi cations
Acknowledgment and feedback
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250 Claims
Business Correspondence letters
EDI Users:
Central and state government agencies
Industry
Banking
Retailing
Manufacturing
Insurance
Healthcare
Automotive
Electronics
Grocery
Transportation
How EDI work s?
The data or the information that one company sends the other first gets
prepared to be sent, then the information/document is translated into EDI
format. The document is then connected and transmitted to the other
business, the connection is direct and point to point.



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251 Advantages of EDI:
There are several advantages to Electronic Data Interchange:
1. The paper usage reduced : The expense of storing, printing, recycling,
reduces up to the maximum amount due to the EDI.
2. Improved quality of Data : The data entry errors are reduced due to
EDI.
3. Speed Increases : The best advantage is the increase in the speed of the
data interchange. With everything going online, the speed of the
information transfer increases exponentially.
4. Security : By following th e Protocols and the standard rules, the
security of all the important documents is always secure and safe.
5. Information accuracy : Since the information exchanged is based on
standards agreed by the sender and receiver both, the correct
information is alw ays transferred regardless of where they belong to.
6. Less Cost : With very less errors, fast response time, every thing
becoming automated, and no use of paper, the cost automatically
reduces.
Disadvantages of EDI:
1. The initial setup of the EDI is very Tim e-consuming.
2. EDI standards keep on changing after some amount of time.
3. A very systematic and proper back up is required as the entire data
relies on EDI.
4. The setup and maintenance of the EDI is very Expensive.
4.6 EXTRANET
An extranet is a private network that enterprises use to provide trusted
third parties -- such as suppliers, vendors, partners, customers and other
businesses -- secure, controlled access to business information or
operations.
Some use cases for extranets include the following examples:
● exchanging large volumes of data using electronic data interchange;
● sharing product catalogs exclusively with wholesalers;
● collaborating with other companies on joint development projects;
● jointly developing and using training programs with other companies;
● providing services to a group of other companies, such as an online
banking application managed by one company on behalf of affiliated
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252 What are the advantages of using an extra net?
Extranets offer significant benefits for enterprises, employees and external
partners:
● Enhanced engagement and communication. Extranets provide a
platform for communicating important updates, making announcements or
sharing important news relevant to all stakeholders. This approach can
lead to increased participation and engagement from employees and
external partners.
● Enhanced efficiency. Businesses of all sizes, including startups,
often work with multiple partners and external vendors to develop
products and complete tasks. An extranet helps manage these workflows.
● Enhanced collaboration and knowledge sharing. Before the
emergence of popular team collaboration tools, like Asana, Trello and Jira,
companies mostly depended on extranets and intranets to improve
collaboration. This approach ensured seamless document sharing and real -
time updates, while providing a secure environment to work with sensitive
company data or project data.
What are the disadvantages of using an extranet?
Extranets also come wi th some drawbacks:
● Capital expenditure. Setting up and maintaining an extranet can be
resource -intensive. The price includes the cost of on -premises hardware
and software, as well as the costs associated with hiring information
technology staff who must bu ild it and maintain it. As a result, an extranet
may not the best option for companies that do not have the financial
resources to set up and manage it. Alternatively, managed or cloud -hosted
extranets, such as Microsoft SharePoint, can help mitigate some of these
upfront expenses.
● Data security. Using an extranet requires steps to mitigate risk. If
security measures are lax, unauthorized users can potentially get in and
access sensitive data. This may lead to the loss of proprietary or
confidential data an d competitive advantage. As such, extranets are best
managed by in -house professionals who can help mitigate the risk of data
leaks.
4.7 ELECTRONIC PAYMENT SYSTEMS
Type 1: Payment Through an Intermediary - Payment Clearing
Services
In order to be used as a substitute for face -to-face payments, online
payment systems must incorporate all or some of these stages within their
payment functions. The lack of face -to-face interaction also leads to more
secure methods of payment being developed for electronic com merce, to
deal with the security problems for sensitive information and uncertainty
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253 intermediaries to provide security, identification, and authentication as
well as payment support.
Figure 4.7.1 shows a stylized transaction for online commerce using an
intermediary. In this model, the intermediary not only settles payments, it
also takes care of such needs as confirming seller and buyer identities,
authenticating and verifying ordering and payment information and other
transactional requirements lacking in virtual interactions. In the figure,
two boxes delineate online purchasing and secure or off -line payment
clearing processes. Payment settlement in this figure follows the example
of the traditional electronic funds transfer model which uses secured
private value networks. The intermediary contributes to market efficiency
by resolving uncertainties about security and identity and relieving
vendors of the need to set up duplicative hardw are and software to handle
the online payment clearing process. The payment information transmitted
by the buyer may be one of three types. First, it may contain only
customer order information such as the identity of the buyer and seller,
name of the prod uct, amount of payment, and other sale conditions but no
payment information such as credit card numbers or checking account
numbers. In this case, the intermediary acts as a centralized commerce
enabler maintaining membership and payment information for b oth sellers
and buyers. A buyer need only send the seller his identification number
assigned by the intermediary. Upon receiving the purchase order, the
intermediary verifies it with both the buyer and seller and handles all
sensitive payment information o n behalf of both.

Figure 4.7.1: Transactions with an intermediary
The key benefit of this payment clearing system is that it separates
sensitive and nonsensitive information and only non -sensitive information
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254 seen as a serious barrier to online commerce. In fact, First Virtual does not
even rely on encryption for messages between buyers and sellers. A
critical requisite for this system to work is the users' trust in the
intermedi aries.
Type 2: Payment Based on EFT - Notational Funds Transfer
The second type of payment systems does not depend on a central
processing intermediary. Instead, sensitive payment information (such as
credit card or bank account number) is transmitted al ong with orders,
which is in effect an open Internet implementation of financial electronic
data interchange (EDI) (see Figure 4.7.2). An electronic funds transfer
(EFT) is a financial application of EDI, which sends credit card numbers
or electronic check s via secured private networks between banks and
major corporations. To use EFTs to clear payments and settle accounts, an
online payment service will need to add capabilities to process orders,
accounts and receipts. In its simplest form, payment systems may use
digital checks —simply an image of a check — and rely on existing
payment clearing networks. The Secure Electronic Transaction (SET)
protocol - a credit card based system supported by Visa and MasterCard -
uses digital certificates, which are digita l credit cards. We call this type of
payment system as notational funds transfer system since it resembles
traditional electronic fund transfers and wire transfers which settle
notational accounts of buyers and sellers.

Figure 4.7.2: Notational funds t ransfer system
Notational funds transfer systems differ from payment clearing services in
that the 'payment information' transferred online contains sensitive
financial information. Thus, if it is intercepted by a third party, it may be
abused like stolen credit cards or debit cards. A majority of proposed
electronic payment systems fall into this second type of payment systems.
The objective of these systems is to extend the benefit and convenience of
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255 Internet is open and not as secure as private value added networks
(VANs). The challenge to these systems is how to secure the integrity of
the payment messages being transmitted and to ensure the interoperability
between different sets of paymen t protocols.
Type 3: Payment Based on Electronic Currency
The third type of payment systems transmit not payment information but a
digital product representing values: electronic currency. The nature of
digital currency mirrors that of paper money as a m eans of payment. As
such, digital currency payment systems have the same advantages as paper
currency payment, namely anonymity and convenience. As in other
electronic payment systems, here too security during transmission and
storage is a concern, althoug h from a different perspective, for digital
currency systems doubles pending, counterfeiting, and storage become
critical issues whereas eavesdropping and the issue of liability (when
charges are made without authorization) are important for notational fun ds
transfers. Figure 4.7.3 shows a digital currency payment scheme.

Figure 4.7.3: Digital Currency Payment Scheme
The only difference from Figure is that the intermediary in Figure 4.7.3
acts as an electronic bank which converts outside money, into insid e
money (e.g. tokens or e -cash) which is circulated within online markets.
However, as a private monetary system, digital currency will have wide
ranging impact on money and monetary system with implications
extending far beyond mere transactional efficien cy. Already digital
currency has spawned many types of new businesses: software vendors for
currency server systems; hardware vendors for smart card readers and
other interface devices; technology firms for security, encryption and
authentication; and new banking services interfacing accounts in digital
currency and conventional currency.
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256 4.8 RISKS AND SECURITY CONSIDERATIONS
Common Security Threats to Ecommerce
1. Financial frauds
There are two common frauds that are used to target the e -commerce
indust ry: credit card frauds and fake returns.
● Credit card fraud happens when a criminal uses stolen credit card
data to purchase goods or services on an e -commerce store. When
payment authorisation based solely on passwords and security questions
does not verif y a person’s identification. If someone else obtains our
credentials, this might result in a fraud prosecution. This allows the third
party to effortlessly take money.
● Fake returns are unauthorized transactions made to false requests for
returns. Businesse s reimburse unlawfully obtained merchandise or
damaged goods in refund fraud, which is a typical financial scam.
2. Phishing
Phishing is a cybercrime that aims at stealing user’s confidential data —
login and passwords. This is achieved via mass email camp aigns run on
behalf of popular brands, as well as personal messages inside of the
various services like social networks.
Messages often contain a direct link on a fake website that looks exactly
like the real one, or on a website that redirects the user so mewhere else.
When the user lands on a fake page, cybercriminals try to make the user
enter his login and password that he uses to access a specific website,
which allows villains to get access to bank accounts.
3. Spam
Emails are recognized for being a po werful medium for increasing sales,
but they are also one of the most often utilized channels for spamming.
Nonetheless, leaving infected URLs in comments on your blog or contact
forms is an open invitation for internet spammers to damage you. They
frequen tly send them through your social media inbox and wait for you to
click on them. Furthermore, spamming not only compromises the security
of your website, but it also slows it down.
4. Bots
Bots are automated software applications programmed to perform spec ific
tasks. Web crawlers, probably the most known type of bots, are those that
define websites’ rankings by systematically browsing all the exiting pages
on the internet.
However, there are bots specifically created to crawl websites for their
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257 change the pricing of your online store, or to garner the best -selling
inventory in shopping carts, resulting in a decline in sales and revenue.
5. DDoS Attacks
DDoS (distributed denial of service ) assaults have evolved from a small
annoyance that may have caused modest harm to a huge security risk that
is easily damaging and shutting down the business continuity of the
world’s largest and most powerful corporations.
A DDoS assault aims to prevent a company from operating until the attack
is effectively prevented or the attacker ceases. This attacks can harm your
website or app by generating a large number of requests which eventually
can crash the whole system and make it unavailable for the end -user. This
eventually disrupts your site and affects sales.
6. Brute Force Attacks
The brute force attack is one of the most common password -cracking
techniques. This approach presupposes that a hacker tries to use as many
character combinations as possible in order to figure out the correct
password.
7. SQL Injections
SQL injection is a cyber -attack aimed to entry your website’s database by
targeting your query submission forms. Hackers inject malicious code into
your database to read, delete, change, collec t or add data.
8. Cross -Site Scripting (XSS)
Cross -site scripting is an attack that comes in the form of a piece of
browser code script (HTML). When the attacked user opens the browser
and the website, the malicious script starts running and receives acces s to
the various types of user’s sensitive data that must be protected.
9. Trojan horses
Malware, a program usually downloaded by customers as legitimate
software, is called a trojan horse. To this category belong programs that
can gather data about credit or debit cards, transfer this information to the
hacker, as well as crash users’ computers or use PC resources for hacker’s
goals without permission of the user. These programs get any sensitive
data with ease and may also infect your website.
10. Man in the middle
A cybercriminal may eavesdrop on the communication between a store
consultant and a customer. If the client is connected to a vulnerable Wi -Fi
or network, hackers can take advantage of that to steal sensitive data.

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258 E-commerce security solution s
1. HTTPS and SSL certificates
SSL certificate is one of the ways to protect user’s personal data on the
internet.
You may have seen that there are two types of browser addresses —
HTTP and HTTPS. Both abbreviations stand for communication protocol.
The protocol is a set of rules that defines data exchange between browser
and server, what kind of information should exist there and what to do
with that data.
HTTPS is a protected version of HTTP. It’s an SSL protocol, that gets
activated after SSL -certifica te is set and encrypts personal data before the
information is transferred to the e -commerce website or app owner.
This kind of protection is really useful when you have transactions to be
done on your website. Whenever customers enter their credit card
information it can be stolen by hackers and used by them later on. Thus,
using an SSL certificate will make payments on your website secure and
clients won’t be afraid of scams.
2. Anti -malware
Anti-malware is software that detects and deletes computer virus es, as
well as other undesirable or harmful programs. Anti -malware also
reestablishes files that have already been harmed by viruses and prevent
further file or software modification that can be done by malicious code.
Anti-malware is used against worms, v iruses, and Trojan horses.
3. Secure server and the admin panel
Using passwords that contain different characters and are hard to guess is
a key. You should also change them frequently. Another good practice is
restricting user access and defining user rol es. Let everyone perform only
what they have to on the admin panel. Making the panel notify you if a
foreign IP tries to access it is an extra step for your security.
4. Secure payment gateway
Don’t store clients’ credit card information on your database.
Alternatively, use Stripe and PayPal as a third party to manage the
payment transactions away from your website.
5. Deploy firewall
A firewall is a network security system that controls and filters network
traffic (incoming and outgoing) according to defin ed rules and eliminates
e-commerce security threats.
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259 6. Additional e -commerce security measures
● Tell your clients to use resources that are familiar to them, clic k on
saved links, use the official internet banking app and check out where
they get their messages from.
● Make scanning your website from malware your constant routine.
● Increase your data protection by using multi -layer security and
backing up your data.
● Use efficient plugins for e -commerce security and update your systems
often.
4.9 LEGAL ISSUES
Legal Issues Associated with E -commerce
1. Contracts
The ability for parties to make genuine and legally enforceable contracts
online is at the heart of e -commerce . As parties replace paper documents
with electronic equivalents, basic problems arise about how e -contracts
may be made, performed, and enforced. The Information Technology Act
of 2000 governs contractual elements of electronic record use, including
attribution, acknowledgment, dispatch time and location, and reception.
The IT Act, however, should be read in connection with the Indian
Contracts Act, 1872, because it is just an enabling Act. The Contract Act
requires three key factors for the formation of e very contract. There must
be an offer, which must be accepted without alteration, and there must be
some kind of remuneration for the contract. E -contracts would benefit
from these elements.
Additionally, this will require certain types of contracts and th e
impossibility of determining the true consumer’s age, with the standard
age to enter into contracts set at 18. As a result, it’s critical that an online
business portal considers this possibility and includes a form on its
website saying that the person with whom it’s dealing or entering into an
e-contract has reached the age of majority.
2. Privacy and Data Protection
The privacy of its users is a vital factor for every e -commerce company.
Individuals and organisations can easily get personal and sensiti ve
information thanks to breakthrough technology and a lack of safe
processes. When it comes to internet enterprises, privacy is a big concern
that may lead to issues for both the company and its consumers.
Consumers exchange personal information with comp anies via the internet
and expect the sellers to keep it private. When an e -commerce firm caters
to customers in other countries, those countries may have laws that render
the e -commerce corporation accountable for infringing the privacy rights
of the fore ign customer. For example, if Company A in India collects
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260 in the United States, it may be accountable for infringing on the
customer’s privacy rights. When it comes to internet enterp rises, privacy is
a big concern that may lead to issues for both the company and its
consumers. Consumers exchange personal information with companies via
the internet and expect the sellers to keep it private.
3. Intellectual Property Rights
All trademark s and copyrights for the items, words, and symbols to be
utilised must be protected. India, on the other hand, has a well -defined
legal and regulatory framework for the protection of intellectual property
rights. Furthermore, the regulations have yet to be entirely updated for
total efficiency in the virtual world. For example, there is no law against
the misrepresentation and abuse of domain names.
Using content from another firm while creating material for your e -
commerce website might be a serious legal issue. This might mark an end
to your e -business. There are several royalty -free websites that allow you
to access their information and photos. You may utilise those websites to
generate online content for your company’s website.
E-commerce websites are o ften built and administered by third companies
that are experts in the sector. A third party is frequently in charge of the
material. Thus, unless the parties agreement expressly states that IP rights
are protected, there is a risk of trademark, copyright, or patent
infringement on an online platform.
4. Jurisdictional Issues
In India, there is a scarcity of jurisprudence on questions of jurisdiction in
the e -commerce sector. Due to the occurrence of several transactions,
resolving disputes in the B2C secto r is particularly difficult. Aside from
the design of the corporate structure, judgments must be made on the
jurisdiction in which the corporate structure should be located since this
will decide the scope of any responsibility that may emerge against the
website. Apart from the form of the corporate structure, decisions must be
taken on the jurisdiction in which it should be based since this will
determine the scope of any liability that may arise against the website.
This means that you can be sued in a f oreign court even if you are not
physically present in that nation, as long as your website has just a
minimum connection to that nation. As a result, a business should include
an applicable choice of law and forum provisions in its online contract,
identi fying the jurisdiction to which the contractual parties would be
subject. In general, much local legislation allows for a long -arm
jurisdiction, which means that the execution of such local laws has
extraterritorial applicability if an act or omission has resulted in some
illegal or adverse consequence inside the country’s territory.

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261 4.10 OTHER EMERGING TECHNOLOGIES
1. AI (Artificial Intelligence) for a personalized shopping experience
With this tech trend, when a visitor comes online, then AI bot vets ou t the
customer’s profile and information, and quickly finds out the relevant
insights to shape up the users’ shopping journey.
It goes through transaction history, previous interaction, product
preference, and location to suggest the ideal products. but it doesn’t stop
here and creates and delivers product recommendations through widgets,
pop-ups, and ads. This enables visitors to get a personalized feel and set
their foot forward in the right direction.
2. Blockchain for fraud detection
To start with, Bloc kchain technology was developed and designed
primarily for bitcoin transactions, and other cryptocurrency -related affairs.
But over the period of time, its capabilities found an extension, and have
now become purposeful for the eCommerce sector as well.
Since blockchain works, sans any centralized authority, it enables
everyone to access all the information within while being unable to alter
any details. And this very characteristic of this tech -trend is used primarily
in the eCommerce sector to enhance the process of product traceability.
Further, it also supports offering a shield against online fraud, and protects
and prevents cyberattack on users’ account or card details.
3. Internet of Things for improved tracking
The very concept of IoT - the Internet o f Things has let different devices
communicate with each other. And this technology has opened a floodgate
of opportunity to share information and relay commands for offering
better coordination for tracking.
IoT for eCommerce helps in improving inventory management. Further,
the inclusion of RFIDs and sensors enable customers to closely monitor
to-be delivered products in real -time and let not the quality get
compromised.
On the other hand, the warehouse staff can keep a check on the available
stock, and k eep the space for upcoming products. It also streamlines the
coordination between sellers and customers, by offering accurate location
and real -time information of the package.
4. Chatbots for an enhanced user experience
The intelligent AI -powered chatbots have gradually turned out to be a
never -stopping support system. These bots are trained to handle customer
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262 With the constant advancement made in artificial in telligence and NLP,
the ecosystem that runs behind the chatbots has also turned smarter, and
capable of handling complex customer interactions.
They mimic human emotions and empathize with the customers to give
them a most human -like experience while chatt ing. These bots are the
most incredible piece of technology, that has the potential to engage
visitors to influence and enhance their shopping experience.
5. VR for a futuristic shopping
The digital kiosk and digital driving are some of the most prominent use
cases of VR in the eCommerce industry. Today, shopping through the
futuristic mode of VR is the need of the hour, and addressing the demand
of millennials effortlessly.
4.11 EXERCISE QUESTIONS
Multiple Choice Questions.
1) __________________ technolog y was developed and designed
primarily for bitcoin transactions, and other cryptocurrency -related
affairs.
a) Blockchain b) AI c) IoT d) SEO
2) The ability for parties to make genuine and legally
enforceable contracts online is at the heart of ________ ________.
a) software b) e-commerce c) hardware d) computer
3) Malware, a program usually downloaded by customers as legitimate
software, is called a ____________________.
a) Google b) avast c) trojan horse d) Microsoft
4) ____________ are automated s oftware applications programmed to
perform specific tasks.
a) DDoS b) spam c) extranet d) Bots
5) __________ certificates are one of the ways to protect user’s personal
data on the internet.
a) SSL b) FTP c) SMTP d) HTTP
True or False.
1) Anti -malwa re is software that detects and deletes computer viruses, as
well as other undesirable or harmful programs.
2) An extranet is a private network that enterprises use to provide trusted
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263 3) Online Publishing refers to the digital publication of books, magazines,
catalogues, and developing digital libraries.
4) Online Marketing refers to the gathering of data about consumer
behaviors, preferences, needs, buying patterns and so on.
5) TheDDoS attack is one of the most common password -cracking
techniques.
Define or short answer.
1) E-commerce
2) Electronic data exchange
3) Phishing
4) Contracts
5) Blockchain
Long answer.
1) Write a short note on extranet.
2) What are common security threats to e -commerce?
3) Explain electronic payment systems.
4) Ex plain security solutions for e -commerce.
5) What are applications of e -commerce?
4.12 REFERENCES:
1. www.geeksforgeeks.com
2. www.medium.com
3. www.lawcorner.in
4. www.thenexttech.com



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264 5
E-COMMERCE
Unit Structure
5.0 Learning Objectives
5.1 Meaning of Ecommerce
5.2 The Benefits o f E-Commerce (Advantages)
5.3 The Limitations of E -Commerce
5.4 Role of Strategy in Ecommerce - Technology and Marketing Strategy
5.5 Value Chain in E -Commer ce
5.6 Infrastructure for Ecommerce - Requirements
5.7 Web Based Tools for Ecommerce
5.8 Ecommerce Software
5.9 Security Threats to Ecommerce
5.10 Implementing Security for ECommerce
5.11 Electronic Payment System
5.12 Strategies for Marketing
5.13 Elect ronic Market
5.14 Business Plan for implementing Electronic Commerce
5.15 Exercise Questions
5.16 References
5.0 OBJECTIVES
After studying this chapter you should be able to understand
 E-commerce and E -business
 Infrastructure requirements of Ecommerce
 Threats to Ecommerce
 Plan to implement Ecommerce




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265 5.1 MEANING OF ECOMMERCE
5.1.1 What is Ecommerce ?
Electronic commerce or e -commerce has been defined as the ability to
perform transactions involving the exchange of goods or services between
two or mor e parties using electronic tools and technique. Consumers can
easily buy products or services like magazines and airlines tickets via
Internet.
DEFINITION
The word commerce is the basic concept for electronic commerce,
pertaining to buying and selling of g oods while ‘commercial’ denotes
business practice and activities intended to make profits. Electronic
commerce, like any other business, deals with the exchange of money for
soft or hard goods and services.
Electronic Commerce (e -commerce) is electronic b usiness. It’s using the
power of computers, the Internet and shared software to send and receive
product specifications and drawings; bids, purchase orders and invoices;
and any other type of data that needs to be communicated to customers,
suppliers, empl oyees or the public.
E-commerce is the new, profitable way to conduct business which goes
beyond the simple movement of information and expands electronic
transactions from point -of-sale requirements, determination and
production scheduling, right through to invoicing, payment and receipt.
E-commerce uses key standards and technologies including Electronic
Data Interchange (EDI), Technical Data Interchange (TDI), Hypertext
Markup Language (HTML), Extensible Mark -up Language (XML), and
the Standard for Exch ange of Product model data (STEP). E -commerce is
made possible through the expanded technologies of the Internet, the
World Wide Web, and Value -Added Networks.
E-commerce includes purchases of goods, services and other financial
transactions in which the interactive process is mediated by information or
digital technology at both locationally separate, ends of the interchange.
E-commerce transaction model can be in terms of business to business
(B2B), business to customer (B2C) or customer to customer (C2C ).





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266 5.1.2 FEATURES OF E -COMMERCE TECHNOLOGY
SEVEN UNIQUE FEATURES OF E -COMMERCE TECHNOLOGY
Dimension of E -commerce
Technology Significance in Business
Ubiquity
Internet/Web technology is
available every where: at work, at
home, and elsewhere via mobile
devices, anytime.
The marketplace is extended beyond
traditional boundaries and is
removed from a temporal and
geographic location.
“Marketspace” is created; shopping
can take place anywhere. Customer
convenience is enhanced, and
shopping costs are reduced.
Global Reach

The technology reaches across
national boundaries, around the
earth.
Commerce is enabled across cultural
and national boundaries seamlessly
and without modification.
“Marketspace” includes potentially
billions of consumers and millions of
businesses worldwide.
Universal Standards
There is one set of technology
standards, namely internet
standards. There is one set of technical media
standards across the globe.
Richness
Video, audio, and text messages
are possible. Video, audio, and text marketing
messages are integrated into a single
marketing message and consuming
experience.
Interactivity

The technology works through
interaction with the users. Consumers are engaged in a dialog
that dynamically adjusts the
experience to the individual, and
makes the consumer a coparticipant
in the process of delivering goods to
the market.
Information Density

The technology reduces
information costs Information processing, storage, and
communication costs drop
dramatical ly, while currency,
accuracy, and timeliness
and raises quality. improve greatly. Information
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267 Personalization / Customization
The technology allows
personalized messages to be
delivered to individuals as well as
groups. Personalization of marketing
messages and customization of
products and services are based on
individual characteristics.

5.1.3 NEED FOR E -COMMERCE
The global business environment is moving faster than ever before.
Increased competition at home and abroad means quality as well as
profitability must be preserved by corporate houses. This pressure has led
to a reappraisal of the accepted existing business practice in the search for
greater efficiently.
Traditionally, the response in the fac e of competitive threat has been to
reduce costs by L rationalizing production, shedding labour and
restructuring business, coupled with investments in .technology to
improve productivity and generate profit.
Whether business to business (B2B) or busines s to customer (B2C) there
are benefits to all parties, customers or suppliers. A reduction in
acquisition times and costs, lower prices for goods and services, an
expanded number and quality of suppliers, an increase in buyer
productivity. Better managemen t information and better inventory control
is possible. A Reduction time to market is also achievable giving
improved operating efficiencies and improved product quality at reduced
cost. The payment process can also be improved and finally and most
importa ntly a greatly expanded customers base. B2B e -commerce was
born out of an attempt to solve an administrative problem. It developed a
new computer standard to handle these needs, which became known as
EDI, Electronic Data Interchange. Today its descendant, XML, a lighter,
simpler data interchange standard is used by B2B sites. Simple e -
commerce sites first appeared in 1992. The early e -commerce sites were
virtual catalogues, simply listing products for sale. Ordering was off -line,
through e -mail, phone or f ax. By 1996 the technology had advanced
greatly to produce virtual stores with shopping carts, client accounts and,
with the development of protocols such as Secure Socket Layer (SS L),
enabled customers to order and pay for their purchase on -line directly
by credit card.
E-commerce quickly became popular with consumers and suppliers. For
customers, it was fast, easy and efficient, allowing them to compare
products, price and service before purchase. For suppliers, it allowed them
to reach an unlimit ed international audience, 24 hours a day, 7 days a
week at reduced costs. Today e -commerce is widely used and growing
fast. B2B is the largest, fastest growing and most profitable market.
According to IDC, this year, it is expected to account for two thir ds of
world wide e -commerce. B2C is also expected to grow, boosted by
Broadband (high -speed) Internet access to more online households. Future
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268 help users find what they are looking fo r. Sites can work with fulfilment
centres providing customers with excellent service and suppliers with
information, and can support the newest trend for human interaction in E -
commerce customer service. The Internet is creating unprecedented and
seeming infinite opportunities for both customers and businesses. Yet it
one of its major problems is that it is changing so fast that both parties are
overwhelmed by the speed of change and the sheer number of choices
available to them. In addition web businesses win by following rules quite
different than those which traditional businesses may follow.
E-commerce appears to be exempt from the kinds of constraints that have
limited companies historically. An e -commerce environment handled in a
proper manner, with the right customisation of products and services, in
innovative ways, can lead to win -win situations. The customers can get the
right product at the right time and for the right price, companies can set
new standards in efficiency and profitability.
5.1.4 LEVELS OF E -COMMERCE
There are five major segments under the broader category of e -business.
However, the following are some popular e -commerce models used by
companies engaged in ecommerce: -
• Business to business e -commerce (B2B)
• Business to consumer s e-commerce (B2C)
• Consumers to consumers e -commerce (C2C}
• Business to employees e -commerce (B2E) and
• Consumer to business e -commerce (C2B)
5.1.4.1 Business to Business E -commerce (B2B)
E-business is the process of conducting business on the Intern et. In a B2B
transaction, the interaction is between businesses. For example, a website
that is catching for the steel industry might have a facility for buyers and
sellers to list their requirements and post their products. It helps them in
quickly closin g the transactions and the buyer can get quality, material and
can choose from different suppliers.
Business to Business e -commerce provides small and medium enterprises
(SMES) with an excellent opportunity to access new markets, improve
customer service and reduce costs.
In this form of e -commerce, a business firm places orders for supplies with
another business firms directly over the Internet. Paperwork and time
required for processing the order and delivery of the goods are thus
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269 5.1.4.2 Business to Consumers E -commerce (B2C)
B2C e -commerce involves selling of goods and services to consumers or
end users. It allows them to browse the product catalogue, select products
or services and complete the order online.
For example , the most popular site is amazon.com, which is the first
online bookseller which has proved a potential competitor to the
traditional bricks and mortar booksellers such as Barrens and Noble.
In this category of e -commerce, businesses use the internet to o ffer to
consumers sales and services around the world 24 hours a day, seven days
a week and 365 days a year, The sites Amazon, Rediff and Uphar are
among those belonging to this category. These websites are meant for
selling goods directly to consumers thr ough the internet. The twoway
accessibility of the internet enables operating companies to directly
ascertain customer preference and buying trends. Businesses are using
these consumer insights to formulate marketing strategies and offer to the
customers w hat they want and when they want. E -business in this mode
significantly reduces the costs associated with intermediaries, service
centres and mass marketing campaigns. Since e -commerce makes just in
time delivery possible, the supplier does not have to sto re the goods. He
can procure them from the suppliers as and when he gets the order from
the buyer through the internet.
5.1.4.3 Consumer to Consumer E -commerce (C2C)
Here interaction is between consumer to consumer. For example, in sites
like e -Buy Bid o r Buy.com, Baazi.com which are auction sites, one can
virtually sell and buy any goods (either used or new ones).
This form of e -commerce is nothing but the cyber version of the good old
auction houses. If anyone wants to sell anything, all one has to do is post a
message on the site, giving details of the product and the expected price
and wait for an interested customer to turn up and buy it. The buyer gets in
touch with the seller through the Internet and the deal is crossed once the
amount is finalise d. Online message boards and barters are also examples
of C2C e -commerce.
5.1.4.4 Consumer -to-Business E -commerce (C2B)
E-commerce, by empowering the customer, has been strategically
redefining business. An example of C2B model of e -commerce is the site
Price line.Com, which allows prospective airline travellers, tourists in
need of hotel reservations etc. to visit its websites and indicate their
preferred price for travel between any two cities. If an airline is willing to
issue a ticket on the customers offered price, the consumer can then travel
to the mentioned destination at his terms.

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270 5.1.4.5 Business to Employees E -commerce (B2E)
This is concerned more with marketing a corporation's internal processes
more efficiently. Customer care and support activities also hold ground.
The requirement is that are all self -service with applications on the web
that the employees can use themselves.
5.2 THE BENEFITS OF E -COMMERCE (Advantages)
The global nature of the technology, low cost, opportunity to reac h
hundreds of millions of people, interactive nature, variety of possibilities,
and resourcefulness and growth of the supporting infrastructure (especially
the web) result in many potential benefits to organisations, individuals,
and society.
5.2.1 Benef its to Organizations
The benefits to organizations are as follows:
• Electronic commerce expands the market lace to national and
international market with minimal capital outlay, a company can easily
and quickly locate more customers, the best suppliers, and the most
suitable business partners worldwide.
• Electronic commerce decreases the cost of creating, processing,
distributing, storing, and retrieving paper -based information. For
example, by introducing an electronic procurement system, companies
can cut the purchasing administrative costs by as much as 85 percent.
• Ability for creating highly specialized businesses. For example, dog
toys which can be purchased only in pet shops or department and
discounts stores in the physical world are sold now in a specialized
www.dogtoys.com (also see www.cattoys.com).
• Electronic commerce allows reduced inventories and overhead by
facilitating “pull” type supply chain management. In a pull -type
system the process starts from customer orders and uses just -in-time
manufacturing.
• The pull -type processing enables expensive customization of products
and services which provides competitive advantage to its
implementers.
• Electronic commerce reduces the time between the outlay of capital
and the receipt of products and services.
• Electronic commerce initiates business processes reengineering
projects By changing processes, productivity of salespeople,
knowledge workers, and administrators can increase by 100 percent or
more.
• Electronic commerce lowers telecommunic ation cost the internet is
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271 • Other benefits include improved image, improved customer service,
new found business partners, simplified processes, compressed cycle
and delivery time, increased productivity, eliminatin g paper,
expediting access to information, reduced transportation costs, and
increased flexibility.
5.2.2 Benefits to Consumers
The benefits of E -Commerce to consumers are as follows:
• Electronic commerce enables customers to shop or do other
transacti ons 24 hours a day, all year round, from almost any location.
• Electronic commerce provides customers with more choices; they can
select from many vendors and from many more products.
• Electronic commerce frequently provides customers with less
expensive p roducts and services by allowing them to shop in many
places and conduct quick comparisons.
• In some cases, especially with digitized products, E -Commerce allows
quick delivery.
• Customers can receive relevant and detailed information in seconds,
rather th an days or weeks.
• Electronic commerce makes it possible to participate ate in virtual
auctions.
• Electronic commerce allow customers to interact with other customers
in electronic communities and exchange ideas as well as compare
experiences.
• E-commerce facilitates competition, which results in substantial
discounts..
. 5.2.3 Benefits to Society
The benefits of E -Commerce to society are as follows:
• Electronic commerce enables more individuals to work at home and to
do less traveling for shopping, re sulting in less traffic on the roads and
lower air pollution.
• Electronic commerce allows some merchandise to be sold at lowest
prices, so less affluent people can buy more and increase their standard
of living.
• Electronic commerce enables people in thir d world countries and rural
areas to enjoy products and services that otherwise are not available to
them.
• Electronic commerce facilitates delivery of public services, such as
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272 at a re duced cost and/or improved quality. Health care services, e.g.,
can reach patients in rural areas.
5.3 THE LIMITATIONS OF E -COMMERCE
The limitations of E -Commerce can be grouped into two categories which
are:
• Technical limitations and
• Non-technical l imitations
5.3.1 Technical Limitations of E -COMMERCE
The technical limitations of E -Commerce are as follows:
• There is a lack of s stem security, reliability, standards and
communication protocols.
• There is insufficient telecommunication bandwidth.
• The software e development tools are still evolving and changing
rapidly.
• It is difficult to integrate the Internet and E -Commerce software with
some existing applications and databases.
• Vendors may need special Web servers and other infrastructures in
addition to the network servers.
• Some E -Commerce software might not fit with some hardware or may
be incompatible with some operating systems or other components.
• As time passes, these limitations will lessen or be overcome;
appropriate planning can minimi ze their impact.
5.3.2 Non-technical Limitations
Of the many non -technical limitations that slow the spread of E -
Commerce, the following are the major ones:
1) Lack of Awareness
The single most important challenge today pertains to increasing
awareness of the benefits of e -commerce to potential customers, educate
the market and the customers will themselves opt for these services. So,
the e -commerce fraternity should accept the fact that the customers are
extremely demanding and that they should be geare d up towards this end
and surpass the expectations of customers. .
2) Lack of Infrastructure
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273 happening and inf rastructure will grow. The high cost of infrastructure
development for e -business is also including the cost of leased lines.
3) Lack of Confidence
The people in India still show hesitancy in buying through the Net. Lack
of quality products, timely deliver y of products as some of them tend to go
out of stock, lack of solutions security are the potential reasons for not
developing e -commerce. People do not understand this new way of buying
and selling products, i.e. the services in a digital environment whic h are
available online.
4) Skeptic Attitude
Though the Internet is continuing to grow at a rapid rate, along with e -
commerce transactions, the shoppers are still skeptical about safety and
have not been quick to trust sending personal information such as credit
card numbers or address over the Net. The risk adverse attitude of the
people is conspicuous and waiting for others to lead is also another
attitude.
5) Credit Cards Frauds
The bigger problem is that of security. All credit cards related transaction s
are approved offline and given the high incidence of frauds, the banks are
extremely wary of approving them. In -fact, there are some unconfirmed
reports of a multi -national bank refusing to approve credit card
transactions carried out by a large Indian p ortal.
6) Absence of Tax Laws
E-commerce over the Net has effectively eliminated national borders. This
has posed an important question as to tax on the transactions over the
internet. Net business posed many peculiar technological and legal
problems makin g it difficult to impose tax and formulate a sound taxation
policy. The following are the various tax implications of ecommerce:
• There is no fixed physical location for the internet.
• It is difficult to monitor or prevent transmissions of information or
electronic cash across the Net.
• Neither the users, administrators nor intermediaries have any control
on the type of information, either transactions or cybercash and
traveling through their networks.
• There is no emphasis on national boundaries, and m essages travel
across the boundaries of several countries globally. So, it means no
difference, whether the information or electronic money sought to be
transmitted are within one jurisdiction or between several.
• A person's location and identity is neces sary for tax purposes. Since
these two are difficult, the anonymity on the Net would pose a big
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274 • Electronic commerce eliminates intermediaries or middlemen. Though
it is an advantageous feature, it also has negative effects because t hey
could have served as leverage points for collection of tax also as
information sources for transactions entered by the customers.
• In addition to technology problems, certain legal hurdles may also be
encountered with reference to international taxati on laws.
• The difficulties in defining service incomes as distinguished from sale
of products, income or royalties cannot be ignored.
So, it is desirable that the Net be turned as a potential free trade zone.
7) Cyber Laws
Another important problem is l ack of comprehensive cyber laws so as to
ensure safety and protection. There should not be any legal regulations, or
barriers to faster and increased development of e -commerce. The crying
need of the hour is urgent action to be taken by the Government to e nact
cyber laws including electronic fund transfer, and amendments of official
Secrets Act.
In addition to them, the fear regarding the security aspects of online
transactions without proper government directives and the existing policy
machinery contri bute to cyber criminality. Adding to them, separate cyber
laws and amendments are also required to many existing laws like
Companies Act, Evidence Act, Copyright Act, Bankers Book Evidence
Act, Indian Penal Code, Contract Act etc. The country entered into a cyber
space and documents through the computers should be made acceptable in
a court of law.
8) Stock Dilemma
A key source of dissatisfaction is the out of stock dilemma. In most cases,
advertised products or services are not available. The options of fee dback
and not receiving suggestions are also reasons for annoyance.
9) Internet Outrage
Failures in networks and the Net itself can play havoc. We read of
frequent press reports of internet outrages. The IT industry is not yet
attempting to improve network reliability to prevent these outrages.
Reliability is a major issue in net business that needs to be attended.
10) Inadequate Government Role
The government is not taking a serious view of e - commerce related
information technology in terms of its promotio n. Spreading awareness,
imparting education, of the benefits of e -commerce, enacting new cyber
laws, amendments to existing commercial laws, developing strong,
communication infrastructure are the key domestic roles for the
government to play.
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275 11) Inactive Indian Software Houses
Software houses particularly in India are not devoted to ensuring strong
expertise in the supply chain and distribution management solutions.
Efforts are lacking to ensure strategic working on development of systems
which will provi de a comprehensive open e -business solutions
environment, comprising of enterprise applications, internet applications
and service and a special technology to enable companies to participate in
the emerging online economy.
12) Difficulty of Reengineering
The web business structure will have to undergo a drastic change and be
reengineered. It is not just about having a website or about sticking a web
address on conventional advertising or transferring a few people to a new
division and designation. It is abou t breaking free and creating new web
services to satisfy the existing customers.
13) Blocking and Censorship
People worldwide are under virtual slavery. It has been ISS reported in
some media that many countries are blocking their citizens from accessing
the Net, either partially or wholly. Censorship is enforced by some
countries by stopping either a total ban on the Net or controlling the access
traffic or installing filters blocking access to websites. Indian citizens
enjoy unprecedented degree of freedom of speech and therefore may
constitute a threat to the government. Development in any field may prove
detrimental if it does not appreciate the code of ethics.
E-commerce has yet to take off in India, because Indian consumers are
wary of leaving their c redit card numbers on the Net. They eye the
neighbourhood shopkeeper with suspicion and drive a hard bargain. So, e -
commerce websites are losing thousands of customers.
5.4 ROLE OF STRATEGY IN ECOMMERCE -
TECHNOLOGY AND MARKETING STRATEGY
In today’s inf ormation -intensive environment, where complex marketing
processes are generating new distribution and communication channels,
multiple pricing options, and customized products and services, the
traditional marketing mix strategies using product, price, pla ce and
promotion are not sufficient. Organizations have to use the technology to
be enabled to dynamically allocate marketing resources to those activities
that generate the best return and have to consider the following issues:
1. How marketing challenges such as global competition can be faced
through technology?
2. What should be the technology infrastructure and technology
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276 3. How information can affect the decision making and marketing
strategies?
4. How can technology he lp to reduce the complexity and to lower the
cost while the firm expands into new market?
5. What cost effective strategies can be used to market and advertise
effectively?
For developing marketing strategy in reference to above mentioned issues
with the ap plication of technology, organizations can look at the
following:
1) Marketing Decision Support Systems
The increased competition and changing market structure have led the
shortening of a product life cycle and for the survival and profitability,
organizat ions require new product innovations. For this, detailed, accurate
and timely information relevant to the product is needed.
• Data Mining and Decision Support: Data mining is an
emerging solution for marketing decision support in
organizations to get opti mum performance by knowledge
workers. It enables to access and manipulate data easily, and
knowledge workers can use the data creatively.
• In general, data in the data warehouse has certain characteristics that
Customer Order – Planning, Forecasting and F ulfillment: To
know what, when, and where the customer demand the products to be
delivered, order processing system is examined. It helps in managing
all parts of the supply chain. Improved inventory control by
understanding this customer order processing system helps the
organizations to meet customers’ needs. So, the business firms can
reduce the inventory costs through improved stock control by
understanding customer ordering and can result in effective planning,
forecasting and fulfillment of customer o rder.
• Customer Relationship Management (CRM): CRM is a marketing
function and has a strong impact on marketing strategies. To know the
wants and preferences of customers in a well defined manner, and the
level of reliability of information, management can use technology.
Business firms also use this technology to analyze the global trends
and for understanding why breaking down of sales cycle has
happened.
• Trend Analysis: With the use of data mining technology
organizations can precisely be able to know t he classification of sales
which would help in predicting some items experiencing low turn and
others high. This classification trend analysis also help in sales and
profit mix planning and inventories can be adjusted accordingly.
• Channel Management: Tech nology allowing business organization to
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277 ultimately affect the supply chain. Better customer values can only be
provided through a marketing mix strategy that contributes to lower
system cost s or improved differentiation for the entire supply chain. So
channel management provides a new impetus for integrating marketing
processes, distribution, and manufacturing.
differentiate data mining from the conventional operational systems.
These inclu de:
o Data is not organized for a specific process or application, but as per
the managers desire to view it. So the data is subject oriented. oData
from many sources where it is usually inconsistent is transferred to
the data warehouse and integrated thro ugh a consistent naming
convention.
o Data should be collected and organized over time for identifying
trends and forecasting. So the data must be time variant.
o Data in the data warehouse is nonvolatile and neither updated nor
changed, but only accessed an d reloaded.
2) Marketing Decision Support Applications
The applications can be classified as follows:
5.5 VALUE CHAIN IN E -COMMERCE
A business model that outlines the entire process of creating new products
or services is known as a value chain. The stages involved in moving a
product from conceptualization to distribution, and just about everything
in between, like obtaining raw materials, manufacturing operations, and
marketing activities make up a value chain for an organisation. The
purpose of a value c hain is to increase the value of a product at each stage
before it is supplied to customers.
5.5.1 There are 5 aspects to primary activities
● Inbound logistics: Receiving, storage, and inventory management are
all part of inbound logistics.
● Operations: Procedures for transforming raw materials into a final
product are included in operations.
● Outbound logistics: It refers to the activities involved in getting a
finished product to a customer.
● Marketing and Sales: Advertising, promotion, and pricing are al l
strategies used in marketing and sales to increase visibility and target
the right customers.
● Services: Customer service, servicing, restoration, refund, and
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278 5.5.2 Primary activity explained using Example
1) Inbound Logistics
Products supplied through Amazon's own fulfillment services, as well as
data center resources that power Amazon Web Services (AWS), are the
company's key inputs. Ama zon can make use of its size as a major
company to cut the cost per unit of items by outsourcing.
2) Operations
Amazon can go beyond in -house distribution capabilities thanks to co -
sourcing and outsourcing from various local companies. Robotics is used
at Amazon's 109 fulfillmentcenters to provide quick and cost -effective
warehousing labor.
3) Outbound Logistics
This is the point at which Amazon converts its inputs into outputs.
Amazon's fundamental product, its ecommerce marketplace, provides a
secure ven ue for both users and merchants to conduct e -commerce
transactions. Their two -day delivery is a significant advantage over
competitors.
4) Marketing And Sales
Amazon spent billions on advertising and marketing in the last decade or
so, demonstrating the ec onomic power of a large corporation to preserve
its position among the most recognized brands in the world. Amazon is
noted for its straightforward and easy return process, including its client
satisfaction scores for AWS cloud services.
5.6 INFRASTRUCTURE FOR ECOMMERCE -
REQUIREMENTS
1. Marketing. Of all the infrastructure elements, marketing may be the
most important. To succeed, your website must be found. Once visitors are
on your site, you need to keep them there and compel them to buy from
you. That’s the job of your marketing team. Whether it’s website design,
social media, search marketing, merchandising, email, or other forms of
advertising, it’s all about marketing.
2. Facilities. A key competitive advantage that ecommerce businesses
have over bric k-and-mortar stores is not having to invest in physical
facilities. In many cases, you can run your business out of a home office,
basement, or garage. If you drop ship or outsource fulfillment, you may be
able to do that for a long period of time. Even wi th many employees, you
can set up your offices in class B or C space, as you have no need for a
fancy store in a high -traffic location.
3. Customer service. There are many choices today for delivering high -
quality customer service. You can manage those act ivities in -house or
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279 activities can be handled using email and, for more extensive needs, phone
support. A customer -management system will make those activities easier,
but for smal ler companies, it is not a requirement.
4. Information technology. Choosing an ecommerce platform is one of
the most important decisions you will make in your business. Do you want
to build and host your own system, outsource the development and then
manag e the system going forward, or use a hosted, software -as-a-service
platform that is turn -key and externally managed?
If you build and host your own system, you may need more cash upfront
and skilled administrators and developers on your staff. By using a S aaS
platform, you will not need to host or manage the system in -house, but
you may still need web developers on staff. Choosing to outsource the
development and hosting will reduce your staffing costs, but you will
incur higher costs for any future enhance ments or changes to your
websites.
5. Fulfillment. Another key decision is whether you will manage your
own inventory or outsource those activities to a fulf illment house or
through drop shipping arrangements with your suppliers.
Managing your own inventory will provide a high level of control, but you
will tie up cash in warehouse space and fulfillment staff. In some
industries — such as the jewelry supply in dustry that my previous
business was in — managing your own inventory was the most logical
choice. We had no alternative for drop shipping, and most items were
purchased in bulk and were very small. We did not trust preparation and
fulfillment to an outsid e service.
6. Finance and administration. You can manage your finance and
administration activities in -house, outsource them, or use a hybrid of the
two. If your ecommerce platform is tightly integrated into your accounting
system, you may have very little need for an in -house bookkeeper. If you
use separate systems for your website, order management, and accounting,
you may need more help for data entry and making sure that the
information is properly managed.
7. Human Resources. Many small -business owners avoid the human
resources function. Recruiting, setting up compensation, maintaining
compliance, and other HR activities are specialized and time -consuming.
You may choose to bring the resources in -house. But, should you
outsource, there are many individu als and agencies well equipped to do
the job.
5.7 WEB BASED TOOLS FOR ECOMMERCE
1. An e -commerce platform
The first and most important tool for a successful e -commerce enterprise is
the platform itself. Platforms such as Shopify and WooCommerce were
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280 preloaded with a slew of tools and services to help you manage your
business. Each platform has its own themes and included services.
2. Digital payment processing systems
You can convert mor e business by making your products or services
purchasable on your website. Thankfully, several third -party payment
providers make online transactions trouble -free and easy to
manage. PayPal and Stripe are two of the most popular solutions available
today. Nearly all e -commerce platforms can integrate these payment
solutions into their website infrastructure.
3. Email marketing platforms and print marketing
To let new and existing customers know about products, you can turn to
email marketing. This is a gre at way to get the word out about your brand.
Another effective way to spread the word about your brand is through
direct mail. With direct mail, you can break through the constant digital
noise and land in your target customers’ hands.
4. Advanced analytic s and tracking
Once your e -commerce site is up and running, you need to track and
analyze all pertinent sales information for your company.
5. Shipping service integrations
All online businesses need to have a solid understanding of how to handle
their log istics efforts.
6. Social media management solutions
Every successful company needs to maintain its social media presence.
That being said, keeping social media profiles updated regularly is
extremely time -consuming, especially for smaller teams. With the
integration of social media management solutions for your e -commerce
storefront, you can keep customers engaged while automating the legwork
required to do so.
7. Customer relationship management software
Regardless of all the tools and services you use to benefit your e -
commerce setup, nothing is more important than your customers’
satisfaction.
5.8 ECOMMERCE SOFTWARE
5.8.1 Types
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281 1. On-Premise. Installed on a local server or computer and managed
on-site by a team that handles manual updates, fix problems, and do
general troubleshooting. Online sellers early on initially went with
on-premise solutions because they allowed greater hands -on
management compare d to hosted solutions.
2. Software as a Service. SaaS or hosted solutions are technically the
hands -off option since all updates, patches, and newly -released
features are done automatically or with one -click integrations. Hosted
ecommerce software has evolved dramatically to allow wide
customization and flexibility, previously exclusive to on -premise,
making it now a sufficient solution for most online retailers.
Furthermore, SaaS software can be launched quickly and comes in
affordable packages.
5.8.2 What do es ecommerce software do?
1. Manage customers and orders. Managing a customer’s order from
product selection to payment, to checkout and delivery is vital.
eCommerce software takes care of managing orders, check order
status, and making quick changes if neede d. It can handle payment
processing, keep transaction records, manage customer information,
create billing and invoicing, undertake accurate accounting, provide
analytics and reporting, among others.
2. Manage products and inventory. You get product specifics and
variations (size, color, quantity) to names and images, allowing you to
organize and catalog items. You’re also notified and made aware if
stocks are low and what particular items are fast -moving and need
replenishing.
3. Simplify marketing. Built -in SEO (Search Engine Optimization)
allows online stores to rank higher in organic search engines for
increased online discovery and presence as well as lower customer
acquisition costs.
4. Automates shipping and taxation. Printing shipping labels,
calculating sales taxes based on customer location, and sending
notification emails to customers can be done automatically and more
accurately.
5. Enhance customer experience. ecommerce software is meant to
enable customers quickly and efficiently find what they need in your
store. Hosted solutions offer service -level agreements to guarantee
100% uptime and simple but robust website management, allowing
you to provide your customers with the best online shopping
experience.
5.8.3 How does ecommerce software work?
1. A shopper vis its your website which displays products and categories
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282 2. The customer uses a shopping cart to add items and creates an account
with all information saved in the database.
3. Once the customer is in the checkout s tage, the website normally goes
into secure mode displaying a lock symbol and using an SSL
certificate.
4. While in checkout the website may utilize third -party software or
services to provide the customer with delivery options, shipping rates,
and expected d elivery date.
5. When the customer enters the credit card number, the information is
sent to a payment processor or payment gateway such as PayPal.
6. The customer order is now completed and all sensitive information is
stored with the payment processor (not wit h the ecommerce website).
7. You can have the payment deposited in your merchant account (a
service usually provided by a payment gateway) or transferred to your
bank account.
5.9 SECURITY THREATS TO ECOMMERCE
NOTE : Already discussed in Module / Unit 4. Refe r to 4.8
5.10 IMPLEMENTING SECURITY FOR ECOMMERCE
NOTE : Already discussed in Module / Unit 4. Refer to 4.8
5.11 ELECTRONIC PAYMENT SYSTEM
NOTE : Already discussed in Module / Unit 4. Refer to 4.7
5.12 STRATEGIES FOR MARKETING
NOTE : Already discussed in Module / Unit 5. Refer to 5.4
5.13 ELECTRONIC MARKET
An electronic market is an inter -organizational information system they
allow the participating buyers and sellers to exchange information about
prices and product offerings. The firm operating the syste m is referred to
as the intermediary, which may be a market participant - a buyer or seller,
an independent third party, or a multi -firm consortium.
Electronic markets are the foundation or of electronic commerce. They
potentially integrate advertising, pro duct ordering, delivery of products,
and payment systems. Many electronic markets also offer additional
services, such as payment or logistics services that help members
complete a transaction. They may also support community activities like
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283 research on customer demand or industry forecasts for components and
raw materials.
5.13.1 Functions of E -Markets: -
E-markets serve three particular functions:
1. They act as an exchange for business transactions -not only purchasing
but also for checking price and stock availability, invoicing and order
chasing.
2. They manage catalog content, converting product information into a
common format understood by all parties.
3. They provide additional services to support the trading process such as
shipping, payment, tendering and determining a company’s financial
status.
Other functions performed by the e -markets: -
● E-markets provide an electronic or online method to facilitate
transactions between buyers and sel lers. They present ideal structures
for commercial exchange, because of market efficiency attained by
tightening and automating the relations between sellers and buyers of
products and services.
● Electronic markets bring together their member companies into trading
communities united by common business interest, thus improving
speed and efficiency. They offer both buyers and sellers forums to
reduce transaction costs, to enhance sales, to streamline distribution
processes, to deliver and consume value -added services, and to
streamline customer management.
● Electronic markets minimize the inefficiency by tightening the
relationships between supplier and buyer, promoting price
transparency, reducing supply chain costs, and increasing the reach of
suppliers.
● By b ringing buyers and sellers together online, electronic markets play
the role of digital intermediaries. For example, demand and supply
information can be aggregated and disseminated, and buyers and
sellers can be matched in electronic markets.
● E-markets al so provide the possibility of forwarding and reverse
auctions. The forward auction brings together many buyers and on a
seller. By this model, the price can only increase. It is most beneficial
for companies that are looking to unload surplus inventory. Th e
reverse auction model brings together many sellers and few buyers.
The buyer drives the price, so in this model, prices are driven
downwards.
● E-markets provide an efficient and cost -effective means of conducting
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284 process and thus have evolved as new channels for corporate
purchasing. For example, buyers can save a significant amount of time
and money on simplified product searches through online catalogs.
They can create online requests for p roposals to solicit service
providers and these providers can respond to potential buyers at a low
cost.
● E-markets provide open transaction networked when a large number of
potential buyers and sellers are able to participate without the
restrictions of ti me and space. Automated transactions save on
communication and people cost and result in fewer ordering errors.
● E-markets also assist order tracking, payments, and collections as well
as easy reordering and product replenishment.
5.14 BUSINESS PLAN FOR IMP LEMENTING
ELECTRONIC COMMERCE
1. Strategic business planning and roadmaps – Strategy is about
making the right choices that will help reach the stated business
objectives.
There should to be a clear cut vision, mission and objective about what
will be achi eved, in how much time, within what budget, identification of
the right resources for and constraints in the face of execution of the
strategy mentioned in the business plan, and what elements will be
considered for roadmap.
Knowledge and deep understandin g of the digital marketing tools and
techniques that will help in reaching and acquiring customers is required.
Your business must reach out to customers who are online across multiple
dimensions and devices.
2. Customer acquisition – Online or popular dig ital marketing
encompasses multiple tools for reaching out to the new generation of
customers, who are actively engaged in using multiple devices, through
search engine optimization, search engine marketing (paid advertisement
that includes both cost per c lick and cost per thousand impressions), social
media marketing (that includes both cost per click and cost per thousand
impressions), email campaigns, display advertisements using various ad
networks, referral programs and re -targeting campaigns.
3. Custo mer engagement – Customers these days are actively seeking to
engage with brands to understand the core benefits and unique value
proposition that the brand offers, discount and offers during special
seasons, a robust support mechanism for queries/clarific ations regarding
the products displayed and interaction with customer support executives to
know more about policies on returns and exchange, etc.
4. Customer retention –With the advent of sophisticated e -commerce
technologies, new age retailers will be ab le to leverage an almost one -to-
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285 5. Optimization based on key metrics – Some of the key metrics to
measure the health of an ecommerce venture are the total revenue
generated, cost of customer acquisition, % of customers converted, and %
of customers entering the website through various channels.
5.15 EXERCISE QUESTIONS
Multiple Choice Questions.
1) In a __________ transaction, the interaction is between businesses.
a) B2B b) B2C c) C2B d) SEO
2) _________ is a marketing function and has a strong impact on
marketing strategies.
a) CRM b) e-commerce c) hardware d) computer
3) A business model that outlines the entire process of creating new
products or services is known as a ______ _______ chain.
a) value b) block c) net d) tech
4) __________________ is an inter -organizational information system
that allows the participating buyers and sellers to exchange information
about prices and product offerings.
a) DDoS b) CRM c) electron ic market d) Bots
5) ____________ refers to the activities involved in getting a finished
product to a customer.
a) Services b) Operation s c) Outbound logistics d) Inbound logistics
True or False.
1) E-business is the process of conducting business on th e Internet.
2) In C2C, interaction is between consumer and business.
3) Electronic commerce decreases the cost of creating, processing,
distributing, storing, and retrieving paper -based information.
4) E -markets provide an electronic or online method to f acilitate
transactions between buyers and sellers.
5) The purpose of a value chain is to increase the quality of a product at
each stage before it is supplied to customers.
Define or short answer.
1) E-commerce
2) B2B e -commerce
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286 3) Strategic business plan ning and roadmaps for e -commerce
4) E-market
5) E-commerce softwares
Long answer.
1) Discuss functions performed by e -markets..
2) What are web based tools for e -commerce?
3) Explain levels of e -commerce.
4) How can e -commerce softwares be used?
5) What ar e requirements for e -commerce?
5.16 REFERENCES :
1) www.clickpost.ai
2) www.practicalecommerce.com
3) www.mimeo.com
4) www.financesonline.com
5) www.solutionweb.in
6) www.embitel.com

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