ITGS student booklet covering topics in Section 2.1 Business and Employment

1. BUSINESS AND
EMPLOYMENT
Isabella Goldsbrough Guilherme Weber
Francisco Oliveira Francisco Zhan
André Miguel Benjon Hamal
Edson Sousa Mr. Brooke
Year 12 ITGS
St. Julian’s 2011

2. Glossary
Extranet: extended intranet. Information system connecting the intranets of two or more
business partners.
Real time processing : processing each transaction as it occurs
Secure Private Network : Physically attached intranets with private leased
phone lines. High security due to limited access but can be costly
Virtual Private Network : public network with special protocols that provide a
secure “tunnel” across the network for partners involved in the business.
Mobile commerce: the use of smart phones, PDAs, laptops and other portable
electronic devices to conduct commerce while moving
Outsourcing: Giving the responsibility for developing and operating their information
systems to another firm
Public network: uses public communications network such as the internet. Not ex-
pensive but low security only firewalls and username password protection
Customer relationship management (CRM): methodologies,
software, and internet capabilities used for managing customer relationships in an organized
way
GPS (Global Positioning System): a radio navigation system that allows
land, sea, and airborne user to determine their exact location and to determine certain routes to
reach desired destinations.

3. Glossary Traditional businesses
Batch processing: The gathering and manipulation of all data the to be processed
for a particular time period
Business to Business (B2B): when a company handles a transaction within This chapter addresses the mechanics of:
itslef
Business to Consumer (B2C): Transactions between a company and indi-  Banks including ATM (automatic teller ma-
vidual customers
chines)
Consumer to Consumer (C2C): transactions between consumers facilita-  EFT (electronic funds
ted with the use of a third party. For example, eBay
transfer)
Business to Employee: handling activities that take place within an organizati-  Hotels
on
 Supermarkets
EFT: Electronic Funds Transfer (EFT) is a system of transferring funds from one bank ac-
count directly to another by electronic means rather than conventional paper-based payment
 Travel agencies
methods. (traditional businesses)
e-business : use of information and communication technology in business activities The information was obtained through inde-
pendent research, and will thus be given refe-
e-commerce : the buying and selling of products over the internet or other electronic
systems rence to through links and bibliography.
Intranet: private network that is contained within an enterprise. Usually consist of vari- Image: https://files.pbworks.com/
ous interlinked LANs.

4. Banks Banks make use of various IT systems Images aligned to the right.
which have facilitated and revolutionized the
processes carried out in banking. Some of
this systems and channels to access their
banking and other services are:
 EFTPOS
 EDI (Electronic Data Interchange)
 MICR
 EFT (Electronic Funds Transfer)
 Online banking
 ATM
Banks provides a safe place for their customers’ money and to lend money to
business and customers. Today all types of banks make use of IT in various
ways, to makes their business more successful. Banks has all the detail infor-
mation of their customers stored in their computer, this allows banks to easily
find their customers account information and make changes to their account bal-
ance quickly and easily. They offer their customers services such as Credit
Cards, Personal Loans, Mutual Funds, Safe Deposit Boxes, Signature Guaran-
tees and many other services.
Sources and appendix.
Good details on Banking; http://meg-odeg.blogspot.com/2010/09/life-in-information-age-
banking-and.html

5. IT systems in cars
The use of IT systems in car has developed more in recent years. Every car that
Banks
Nowadays Online banking allows customers to make financial transactions on a secure
is being manufactured these days contains IT systems that maximize safety and website that is run by their virtual bank. One of the unique features of online banking is that
it allows customers to monitor all of their accounts in one place. Other common feature is
efficiency. Most cars contains computer or microprocessor that receives various
Personal financial management support, such as importing data into personal accounting
information from many different sensors, such as; the oxygen sensor, the air
software.
pressure sensor, the engine temperature sensor, the throttle position sensor, the
Common feature of online banking are;
Smart cars are widely used today. Microprocessors have been used in car en-  Transactional; such as an account to account transfer, paying a bill etc.)
gines since the 1960s and have increased in usage throughout the engine and
Payments to third parties.
drivetrain to improve stability, braking and general comfort. In 1990s devices
Investment purchase or sale
such as GPS navigation, reverse sensing systems and night vision were added.
The 2000s added Web and e-mail access, voice control, smart card activation Loan applications and transactions,
and systems that keep the vehicle a safe distance from cars and objects in its  Non-transactional (e.g., online statements, cheque links, cobrowsing, chat)
path. Viewing recent transactions
Downloading bank statements
Today’s car are built with lots of tech- Viewing images of paid cheques
nologies such as;  Financial Institution Administration
 Smart parking technology  Management of multiple users having varying levels of authority
 Transaction approval process
 Intelligent speed adaptation
Automated Teller Machines (ATMs)
 Radio Beacons Banks also operates a network of ATMs. They use mainframe computers to maintain their cus-
tomer accounts by dealing with transactions generated as a result of withdrawals and deposits.
Sources and appendix. ATMs are used to, Withdraw money from your account, Find your account balance, Change
http://armsitgs.wetpaint.com/page/Smart+Roads+and+Cars your pin, Make deposits, Order a cheque book etc..
The advantages of ATMs:

6. ATM
ATMs are frequently found in banks and shopping centres and are mainly used to do things like:
Traffic control systems
 Withdraw money from your account
Traffic lights and loudspeaker for blind pedestrians
 Find your account balance Traffic lights are signaling devices at road intersections,they help control the flow of traffic by
signaling a car to stop (red), prepare to stop before the intersection (yellow) or proceed in the
 Change your pin
correct direction (green).
 Make deposits
Benefits of ATMs to customers
 People can access their account whenever and wherever
they need it
 24 hour service suits the customers needs
 Fewer queues as ATM transactions are fast
Advantages of ATMs to banks
 Less staff needed
 Customers can only withdraw funds if they have money in their account
One of the major issues regarding automated teller machines is security
 ATMs are vulnerable to physical attack
 Susceptible to fraud – therefore data is encrypted
 Man-in-the-middle attack where criminals attach fake keypads or card readers to existing ma-
chines, leading to identity theft
 Shoulder surfing, where people look the PIN pressed by the customer – this has been prevent by
drawing privacy lines on the floor
 Stealing a customer’s card or trapping it in the ATM machine and waiting until they leave, then
using their card to withdraw money from their account – physical card theft can be prevent by us-
ing CCTVs in areas with ATMs
 Phising the customers bank account through emails

7. Traffic control systems
There are various traffic control systems. Some include:
ATM
 Radar detectors with GPS
 Red Light Camera
 Traffic lights and loudspeakers for blind pedestrians
 Intelligent parking
Radar detectors
GPS based radar detectors help you spot speed traps and tell
you when you’re approaching a red light. When a car surpas-
ses the speed limit it makes the approaching red-light go red.
Red-light Camera How ATMs work
An ATM is a data terminal which has to connect to and communicate with a host processor through tele-
These cameras help enforce traffic laws as they automatically phone networks before connecting to the bank computer.
take photographs of cars illegally passing a red-light.  The customer identifies himself with the bank by using a bank card
 This is done by inserting the card on the card reader, where it is read by a magnetic strip reader.
Intelligent Parking  A secret PIN must also be entered in the numeric keypad so that the person can authenticate them-
selves.
In parking lots such as in malls intelligent parking is
 The PIN is compared to the number in the card chip or to the one in the banks database.
used which signal free spaces with a green light and oc-
cupied spaces with a red light.  Once the PIN is approved the user is allowed to make a withdrawal request to the bank if they
have sufficient funds in their bank account
 Once the transaction is approved the ATM receives the authorization and dispenses the cash re-
quested.
Sources and appendix.
.

8. EFT
What is EFT?
Electronic Funds Transfer (EFT) is the process of
exchanging money from one account to another
through the use of electronic based systems.
How does it Work?
EFT allows for a bank to receive transaction information from one of their customers. Upon re-
ceiving the transaction information, the bank’s EFT system transfers the money from one ac-
count to another.
Electronic Funds Transfer Act
The EFT Act was passed by the U.S. Congress in 1978 in order to point out the right and liabil-
ities of users as well as other third parties involved in transfer.
Advantages of EFT
EFT has various advantages such as: no need to walk around with cash, which means people do
not need to carry large amounts of money with them meaning they could potentially be safer
and lose less money if they get robbed.
Another advantage is that the customer doesn’t need to go to bank or to an ATM to withdraw
some money.

9. Package tracking
What is Package Tracking?
POS
Package Tracking is the process by which
What is POS?
the current and past locations of a package or do- Point of Sale refers to the location in which a monetary transaction occurs.
cument are determined. This is done by scanning
and recording the package as it passes through a
large hub, and storing the data in a real-time data-
base. Some delivery services such as UPS and
EFTPOS
FedEx allow their customers to monitor the loca- EFTPOS, (the most common example is used in supermarkets) when a customer pays for their
tions of their orders online. Packages are identifi- products with a credit/debit card, the transaction is processed using EFT at Point of Sale.
ed by unique tracking numbers, which are gi-
ven to the customers in order for them to fol- Data about the locations of a package being
low their packages online. delivered by FedEx.
EFTPOS Steps
How does Package Packages are scanned and recorded at large 1. The cashier receives the card from the customer.
hub facilities along the route. Previously, this was
Tracking Work? done using RFID technology and matrix barcoding,
2. The cashier runs the card through a card reader, the customer enters the PIN and the cash-
ier then enters the price.
but nowadays smart labels are used. When a pack-
age is picked up, the driver uses a wireless comput-
3. The store’s EFT contacts the bank and the bank access’s the customer’s bank account and
er to scan the smart label (shown left). These
checks if the customer has enough money in their account.
smart labels contain information such as the pack-
age’s tracking number. As the package goes 4. The bank EFT system sends a message either confirming or rejecting.
through the hub facility, the data on the smart label
is scanned and read. Previously, RFID readers 5. The supermarker EFT system confirms the transaction and subtracts the products cost
were used to scan RFID tags, and barcode readers from the customer’s account and adds the subtracted money to the supermarket’s account.
scanner matrix barcodes. The scanned information
is then stored in a real-time database.
http://en.wikipedia.org/wiki/Electronic_Funds_Transfer
https://ib2012-itgs.wikispaces.com/Package+tracking http://en.wikipedia.org/wiki/Electronic_Funds_Transfer_Act
Tommorow’s Technology and You, George Beekman & Ben Beekman, p.480-481. http://en.wikipedia.org/wiki/Point_of_sale

10. Supermarkets Navigation
What is a supermarket? How satellite navigation works
Satellite navigation systems work through Trilateration. The-
re are three parts: the network of satellites, a control station
somewhere on Earth that manages the satellites, and the re-
ceiving device you carry with you.
Each satellite is constantly beaming out high-frequency, low-
Growth in developing countries power radio signals towards the Earth. The receiver picks up these signals and, if it can receive
signals from three or four different satellites, it can figure out your precise location (including
your altitude) by analysing the amount of time taken for the waves to travel.
There has been a rapid transformation of the food retail sector in developing countries, begin-
ning in the 1990s. This applies particularly to Latin America, South-East Asia, China and
South Africa. However, growth is being witnessed in nearly all countries. With growth, has co-
me considerable competition and some amount of consolidation.[12] The growth has been GPS: A radio navigation system that allows land, sea, and airborne users to determine their
driven by increasing affluence and the rise of a middle class; the entry of women into the
exact location, velocity, and time with the aid of a network of satellites.
workforce; with a consequent incentive to seek out easy-to-prepare foods; the growth in the use
of refrigerators, making it possible to shop weekly instead of daily; and the growth in car ow-
nership, facilitating journeys to distant stores and purchases of large
quantities of goods. The opportunities presented by this potential ha-
Trilateration: Where at least 3 satellites send out periodic time signals to a GPS, to de-
ve encouraged several European companies to invest in these mar- termine its position on the surface of the earth. The GPS calculates the distance between the de-
kets (mainly in Asia) and American companies to invest in Latin vice and each satellite based on the delays of the signal times.
America and China. Local companies also entered the market.[13]
Initial development of supermarkets has now been followed by
Sources and appendix.
www.wikipedia.org
.
Source http://www.explainthatstuff.com/howgpsworks.html
Further reading: http://www8.garmin.com/aboutGPS/
Trilateration: http://www.mio.com/technology-trilateration.htm

11. Navigation Supermarkets
GPS and other satellite navigation systems EFTPOS in Supermarkets Images aligned to
the right.
Supermarkets greatly rely on EFTPOS in order to satisfy a greater
There are three different satellite navigation systems used around the world, the best known of variety of customers. This is because most customers would rather
which is the Global Positioning System (GPS), which uses 24 satellites named NAVSTAR or- not carry cash in their pockets and handbags. Another reason this is
biting 18,000 km above Earth. Originally developed by the US military, GPS is now widely a widely used feature is that if there isn’t an ATM nearby, the cus-
tomers won’t have to travel far and wide in order to pick some cash
used for civilian purposes too (car-based satellite navigation devices).
up for paying the supermarket bills.
In Europe, a rival system called Galileo was launched in 2005 and the Russians have their own
system called GLONASS (Global Navigation Satellite System).
What can we use satellite navigation for?
Supermarket Database
The NAVSTAR sa- Most supermarkets rely on a private da-
tellites have atomic tabase in order to control stock, em-
clocks on board that ployee and loyalty card/client data.
make their time These are often backed up in a separate
signals accurate to facility. A program is installed on every
one second in checkout terminal for File I/O purposes
300,000 years. That and this program can add, edit, delete
means the military and print data.
versions of GPS re-
ceivers can pinpoint
things to within just 5
cm (2 inches).
Sources and appendix.
It can show ships, aircraft, and cars where they are. It can help farmers to monitor their crop
yields.

12. Online reservation systems
Steps Involved in Online Reservations.
1. Firstly the customer decide whether the flight will be a one way or if there will also be a
return flight.
2. Secondly the customer chooses from a list of airports where they will fly from and where
they will fly to.
3. Thirdly the customer can choose whether or not they want a direct flight to the desired lo-
cation.
4. Fourthly the customer then chooses the departure and return date.
5. Fifthly next the customer selects the number of adult passengers, children and babies that
will embark on the plane.
6. Finally the customer decides what section of the plane they wish to travel on, executive or
coach.
Online Processing
Online processing like direct processing is when data is processed seconds after it has been in-
put. The difference between online and direct processing is that online processing consists of
various processes cooperating together, for example when a customer chooses a flight from lo-
cation A to location B departing on X date and returning on Y data, the reservation system must
first check if there are any flight available between both locations on the certain dates. If there
are available seat on a plane for the criteria the booking process will continue, if not an error
message would be returned warning customers that no flights are available.
http://www.ehow.com/about_5122697_airline-reservation-systems.html
http://en.wikipedia.org/wiki/Airline_Reservation_System
http://en.wikipedia.org/wiki/Global_Distribution_System

13. Airline reservation systems Online businesses
(e-commerce)
History of ARS
SABRE, the first airline reservation
system was commissioned by
American Airlines in the late This chapter addresses working practices such
1950’s when they needed a system
that would allows real-time access
as teleworking and home working.
to flight details in all of their offic-
es and integration and automation
of its ticketing and booking pro- The information was obtained through inde-
cess.
Eventually, airline reservation sys- pendent research, and will thus be given refe-
tems evolved into the Computer
Reservation System (CRS) that along with a Global Distribution System (GDS), contain data
rence to through links and bibliography.
on: airline schedules, fare tariffs, passenger reservations and ticket records.
Image: http://www.chiefhomeofficer.com
Existing Systems
The major systems include SABRE, Worldspan, Galileo, Patheo and Abacus. American Airli-
nes now uses SABRE, also used by Expedia, Lastminute.com and Travelocity. Abacus is used
by more than 450 individual airlines and 80,000 hotels in dozens of Asian countries.

14. Teleworking Transportation
Telecommuting/ Images aligned to the right.
Teleworking
This chapter addresses the mechanics of:
Telecommuting or tele-
work is a work arrange-  Airline reservation systems
ment in which employ-
ees enjoy flexibility in
 Navigation
working location and  Package tracking
hours. In other words,
 Traffic control systems
the daily commute to a
central place of work is  IT systems in cars
replaced by telecommunication links.
The information was obtained through inde-
Many work from home, while others, occasionally also referred to as nomad workers or web pendent research, and will thus be given refe-
commuters utilize mobile telecommunications technology to work from coffee shops or other
locations. Telework is a broader term, referring to substituting telecommunications for any rence to through links and bibliography.
form of work-related travel, thereby eliminating the distance restrictions of telecommuting. A
person who telecommutes is known as a "telecommuter". A frequently repeated motto is that
Image: http://www.nlr.nl
"work is something you do, not something you travel to".
Sources and appendix.
Wikipedia.org

15. Teleworking
Estimates suggest that over fifty million U.S. workers (about 40% of the working population)
could work from home at least part of the time yet in 2008, only 2.5 million employees (not
including the self-employed)
considered their home their
primary place of business
Occasional tel- ecommuters—
those who work remotely
(though not necessarily at
home) — totaled 17.2
million in 2008.
Very few com- panies employ
large numbers of home-based
full-time staff. The is one nota-
ble exception to this; several
U.S.-based call centers employ thousands of home-based workers. For most employees, the
option to work from home is granted as an employee benefit; most do so only part of the time.
In 2009 the Office of Personnel Management reported that approximately 102,000 Federal em-
ployees telework.
Sources and appendix.

16. E-commerce E-commerce
What is e-commerce? Brick and Mortar Stores
Companies don’t necessarily sell their products online and the customer doesn’t always buy
E-commerce is the buying and selling of products over electro-
their products. However companies make websites that help the customer gather informati-
nic systems such as the internet and other computer networks.
on learning more about the company online
Types of e-commerce More Interaction
Customers leave the website without purchasing as they feel that they do not have enough in-
There are several types of e-commerce :
formation about it. Personal customization brings customer closer to the product as increases
 Business-to-business (B2B) - This is when a company handles a transaction within itslef. the likeliness that the customer will buy
For example, Wal-Mart buys the products it sells from its vendors over the internet.
 Business-to-Consumer (B2C) - This is when a company makes a transaction between the Data Mining in e-commerce
business itself and a consumer. For example, Amazon.com allows internet users tu pur-
chase items and have them delivered to their homes This is when a website looks at the
patterns in a customer’s usual product
 Business-to-Employee (B2E) - This is the handling of activities within the business and choices and does things like recom-
its employees. mendations in order to give the custo-
 Consumer –to-Consumer (C2C) - This is when transactions between consumers occur, mer more of what they want, increa-
being facilitated with the use of a third party. For example, eBay where people auction off sing sales. In amazon.com for exam-
items making it available to anyone else on the internet to purchase it. ple this occurs as they recommend al-
bums or films that are similar to the
ones you have previously purchased.