Ch Atif Sarwar, bin.zourain@yahoo.

com

Use of Information Technology in

E-Commerce
A cquisition, processing, storage and dissemination of vocal,
pictorial, textual and numerical information by a
microelectronics-based combination of computing and
telecommunications is called Information Technology (IT). And when we
buy and sell products with the help of computer devices and computer
enabled networks this is called E-commerce.
It is very clear that there is a direct relation between I.T and e-
commerce. I.T provides a framework, a coordinate and interrelated base
for conducting e-commerce. As we briefly discuss the use of I.T in e-
commerce, it may divide into different categories. Information
Technology provides three types of technologies for E-commerce.
 Computer software
 Computer hardware
 Telecommunication networks

These three types of technologies work in a coordinating and

interdependent system. It enable companies to perform different functions
of e-commerce like enterprise resource planning systems (ERP), data
mining and data warehousing, trading of goods and services virtually.

Computer Software

Computer software is a collection of computer programs and

related data that provide the instructions telling a computer what to do
and how to do it. We can also say software refers to one or more
computer programs and data held in the storage of the computer for some
purposes. In other words software is a set of programs, procedures,
algorithms and its documentation. Program software performs the
function of the program it implements, either by directly providing
instructions to the computer hardware or by serving as input to another
piece of software. The term was coined to contrast to the old term
hardware (meaning physical devices). In contrast to hardware, software is
intangible, meaning it "cannot be touched". Software is also sometimes
used in a more narrow sense, meaning application software only.
Sometimes the term includes data that has not traditionally been

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associated with computers, such as film, tapes, and records. There are
two main types of computer software used in e-commerce.
a) System Software
System software includes operating systems, which govern
computing resources. Today large applications running on remote
machines such as Websites are considered to be system software, because
the end-user interface is generally through a graphical user interface, such
as a web browser. When companies create there websites they can
establish a direct contact with their customers. Companies offer their
products and services on these websites. These websites are a example of
complete user interface that attract, guide and satisfy the customer.
b) Application Software
Application software includes end-user applications of computers
such as Decision making software, Database and Business software for
organizations. Typically organizations get customized application
software according to their needs and requirements.
Decision making software (DMS) is a term integrating decision
analysis tools to facilitate person's decision making process, which results
in a choice of a course of action or a variant among several alternatives.
DMS belongs to the class of Decision Support Systems used to structure
information, identify and solve problems and make decisions.
A database is a system intended to organize, store, and retrieve
large amounts of data easily. It consists of an organized collection of data
for one or more uses, typically in digital form. One way of classifying
databases involves the type of their contents, for example: bibliographic,
document-text, statistical. Digital databases are managed using database
management systems, which store database contents, allowing data
creation and maintenance, and search and other access.
Business software is generally any software programs that help
business increase productivity or measure their productivity. The term
covers a large variation of uses within the business environment, and can
be categorized by using a small, medium and large matrix: The small
business market generally consists of home accounting software, and
office suites such as Microsoft Office. The medium size, or SME, has a
broader range of software applications, ranging from accounting,
groupware, customer relationship management, human resources
software, outsourcing relationship management, loan origination
software, shopping cart software. The last segment covers enterprise level
software applications, such as those in the fields of enterprise resource
planning, enterprise content management (ECM), business process
management (BPM) and product lifecycle management.

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Computer Hardware

A computer is made up of multiple physical components of

computer hardware, upon which can be installed a system software called
operating system and a multitude of software applications to perform the
organization’s desired functions. Computer hardware used in e-commerce
is mini-computers, network servers, mainframe systems, input devices,
output devices, data storage devices modems and other connecting
devices.
Computer systems that organizations use consist of high processor
power, modern graphics interface and storage devices with large memory.
As these systems are used to control networks.
Information technology is providing more innovative and improved
hardware for companies that they can run their businesses more
efficiently and effectively. As being globalize organizations are seeking
systems with more storage, speed, convenience and durability and I.T
enables all of it.

Telecommunication Networks

A telecommunications network is a collection of terminals, links

and nodes which connect together to enable telecommunication between
businesses to businesses, businesses to customers, customers to
customers. Examples of telecommunications networks are:

a) Internet
Internet is a worldwide network of computers and networks.
Internet is the very main use for businesses to conduct their activities
electronically. It provides facilities like World Wide Web on which
companies can create their websites to sell and promote their products.
Internet also provides facility of e-mail, which is a speedy and reliable
contact network between companies and their officials.

b) Intranet
An intranet is a private computer network that uses Internet
Protocol technology to securely share any part of an organization's
information or network operating system within that organization. The
term is used in contrast to internet, a network between organizations, and
instead refers to a network within an organization. Sometimes the term
refers only to the organization's internal website, but may be a more
extensive part of the organization's information technology infrastructure.

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It may host multiple private websites and constitute an important
component and focal point of internal communication and collaboration.
c) Extranet
An extranet is a computer network that allows controlled access
from the outside, for specific business or educational purposes. An
extranet can be viewed as an extension of a company's intranet that is
extended to users outside the company, usually partners, vendors, and
suppliers. It has also been described as a "state of mind" in which the
Internet is perceived as a way to do business with a selected set of other
companies (business-to-business, B2B), in isolation from all other
Internet users. In contrast, business-to-consumer (B2C) models involve
known servers of one or more companies, communicating with
previously unknown consumer users. An extranet is like a DMZ in that it
provides access to needed services for channel partners, without granting
access to an organization's entire network.

d) Telephone Network
Telephone network in modern world has three main types and are
being used in e-commerce. First is a fixed line network where the
telephones must be directly wired into a single telephone exchange. This
is known as the public switched telephone network or PSTN. 2nd is
wireless network where the telephones are mobile and can move around
anywhere within the coverage area. And third is private network where a
closed group of telephones are connected primarily to each other and use
a gateway to reach the outside world. This is usually used inside
companies and call centers and is called a private branch exchange
(PBX).

e) Global Telex Network

The global Telex network is a switched network of teleprinters
similar to a telephone network, for the purposes of sending text based
messages. It is used in selling and marketing department of a
organization. Sale officers and direct customer contact officers use this
network.

END