Understanding E-commerce and ERP Systems

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Executive summary
Over the years the numbers of businesses competing in the market have grown. This has made it
challenging for any organization to survive and have a competitive edge compared to other
companies. For better production rates, many businesses have indulged themselves in adopting
new techniques and technology to perform their transactions.
Before jumping into new methodologies, it is necessary for the involved parties to have a better
comprehension of what they are all about. One of these technologies includes computer-based
systems such as the Enterprise Resource Planning System. The report is aimed at ensuring that it
will portray the detail concerned in this system. Other technologies that have been discussed
include E-commerce; the report will guide the ready to understand how E-commerce works.
It is also necessary that the challenges associated with these methodologies be addressed. Form
the report the challenges have been addressed and the protocols to mitigate the consequences
associated with them. After going through this report, the reader will also have an understanding
of the transaction cycles in Business Accounting.

Contents
Introduction.................................................................................................................... 3
Transaction cycles............................................................................................................ 3
Financial reporting system.................................................................................................. 6
Management reporting system............................................................................................. 6
E-commerce................................................................................................................... 7
Risk of e-commerce.......................................................................................................... 8
Security protocols in e-commerce......................................................................................... 9
Risks associated with computer based/ erp systems...................................................................9
Role of ethics and other internal control processes..................................................................10
Bell studio uml diagrams................................................................................................. 11
Weakness From The system.............................................................................................. 14
Conclusion................................................................................................................... 15
Reference.................................................................................................................... 16

Introduction
The report is aimed at giving a better comprehension of the business factor. This report points
out the meaning of E-commerce, discussing the processes and also the types of E-commerce that
are exercised. In addition, it also discusses the shortcomings that are brought about by practising
E-commerce. The security protocols also implemented to reduce the incidence of cyber-attacks
have also been outlined.
The report also discusses the various types of transaction processes. The business processes in
each transaction cycle have also been stated thus providing a better comprehension. The report
also outlines the introduction of the computer-based system in business environments. The
challenges that come with these systems have also been stated with great reference to the
Enterprise Resource Planning (ERP) System (Lytras and Pablos, 2009).The diagrams in this
report shows the UML diagram for Bell Studios the organization for specific business processes
to be completed.
Transaction cycles
In business accounting, transaction cycles are a group of business processes that work together to
achieve a specific task. Majority of the business processes can be aggregated to function such as
payment of the organisation staff, sale of products, payment of lenders and payment of the
supplier of the raw materials (Maas, van Fenema, and Soeters, 2014). The type of transaction
cycles include
1. The Payroll Cycle
The payroll cycle is a collection of all the processes involved in managing the wages and salaries
of the staff within an organization. The typical processes that are involved include:
 Gathering the information of the time spent by each staff
 Performing benefits and deduction based on the employee time
 And lastly performing a fair distribution of the salaries and wages
While some companies may rely on outsourcing the payroll processing system, others have
already installed systems that perform the above-stated processes (Payroll Software Systems).
The processes involved in this transaction cycle may seem easy to perform but require a