Cloud Computing & Business

1. Scalability
One of the primary benefits of cloud computing is its inherent scalability. For example, being able to easily (and
quickly) scale an IT solution is something that can have an immediate and far-reaching impact on business.
Scaling an environment on-demand simply wasn’t possible in the past – organizations were restricted to the size
and processing power of their hardware setup. With the cloud, this limitation has ceased to exist. The cloud has
truly revolutionized the way businesses can manage technical resources.

2.  Innovation

Innovation is directly tied to business growth. Using legacy technologies can hinder an organization’s ability to
both experiment with new solutions, and actually deploy those solutions at a scalable level. Fighting back-end
performance issues can be a major struggle, especially in the realm of web applications. Using the cloud as an
infrastructure base for innovation can lead to improved performance, lowered costs, and increased agility

3. Cost-effectiveness i

It is one of the primary reasons why cloud computing is important for business. While cloud migration can be
expensive, the right way to approach the issue of cost isn’t by looking at how much money you might save from
migration. Rather, consider how much your organization is currently spending on its IT services as opposed to
how much you will be spending on the cloud.

4. Improved DevOps

The main benefit of DevOps is an increase in the quality and pace of innovative solution deployments. This is
achieved through a flexible communication process that allows for traditionally isolated teams to work together
throughout the entire development cycle. The ability to add new functionalities while also maintaining stability is
the core reason why so many organizations have moved to a DevOps model.

5. Enhanced Compliance & Security

Major cloud service providers are enterprise-level organizations that employ stringent security, compliance, and
data protection standards. One of the main concerns business leaders have about cloud computing is
transferring vital apps (as well as company and/or customer data) to the cloud. However, it’s important to realize
that all major cloud service providers dedicate vast amounts of resources to developing advanced security
protocols, and follow strict regulatory/compliance requirements. Organizations that are in tightly-regulated
industries such as healthcare, government, pharma, and defense, all need to follow countless industry-specific
compliance requirements to ensure application and data integrity.

6. Flexibility

Flexibility is an oft-cited reason why cloud computing is important for business. Infrastructure is more flexible on
the cloud – that much is obvious. However, flexibility also refers to cloud computing’s inherently future-proof
model. Tech is an ever-evolving industry – one where adaptation is not only needed for survival but is required
for business growth. In the past, business expansion was a costly endeavor and one that typically involved
dedicating large amounts of human and financial capital to one singular project (that may or may not end up
generating business growth). Fast forward to today, and organizations have the technical ability to scale on-
demand as the market changes. This on-demand flexibility of scaling capabilities is possible through the flexibility
of cloud computing technology.

7. Multiple Services Offering

There are four main cloud deployment models: public, private, hybrid, and community. The different advantages
and disadvantages of cloud deployment models should be considered early on in your cloud strategy. The
emerging trend in the cloud computing industry is leading towards most organization’s using a hybrid approach,
rather than being locked in with one service provider.

Additionally, there are three main cloud service models: SaaS, PaaS, and IaaS.

SaaS (Software as a Service) examples include industry giants such as Dropbox, Google Apps, Slack,
or Gmail – any type of software that can be used through the internet.
 PaaS (Platform as a Service) examples include Google App Engine and IBM Cloud Foundry. Simply
put, PaaS providers allow organizations to develop custom technical solutions via the cloud. Organizations use
PaaS to develop web applications – minus the infrastructure requirements traditionally required during a
development lifecycle.

It’s common for certain SaaS applications (e.g. CRM and SCM apps) to also have PaaS functionality –
used for custom app extension development. Additionally, many cloud computing service providers offer both
PaaS and IaaS functionality.

IaaS (Infrastructure as a Service) examples include MS Azure, AWS (Amazon Web Services), and
Cisco Metapod. Without getting too technical, IaaS providers offer cloud-based computing resources at scale –
servers, data storage, networking, virtualization, disaster/data recovery, etc.
DISADVATNAGES

 Requires constant internet connection

 Does not work well with slow internet large bandwidth requirement
 Limited features - powerpoint offers more features than online google slides
 Security concerns
 Lack of local backup data can be lost
 Each cloud system has different protocols and APIs
Elements of IT system Setup:

Input - Process -Output 

Hardware - These are all the physical aspects of a computer system. They are tangible, i.e. you can see and
touch them. Input - output - processing - storage

 Software - Software is nothing but a set of programmes (computer instructions), which helps the user to do a set
of specific tasks. It helps the user interact with the computer system with the help of hardware. Software, as you
can imagine, is the intangible aspect of the computer system.

Operating - application - Utility - Language - System - Connectivity

People: The people interacting with the computer system are also an element of it. We call this element the
Liveware. They are the ultimate “users” of the computer systems. There are three types of people that interact
with the system, namely

Programmers: Professionals who write the computer programs that allow users to interact with the
computer. They must have technical knowledge of computers and computer languages.
 System Analyst: They mainly design data processing systems, and solve problems that arise in data
processing

End-Users: Also known as operators, they are the people who interact with the computer system.

Procedures: These are a set of instructions, written in code, to instruct a computer on how to perform a task, run
a software, do calculations etc. There are three types of procedures in a computer They are,

Hardware-Oriented Procedure: Instructs the hardware components of the system, ensures they work
smoothly

Software Oriented Procedure: Provides instructions to launch and run software programs

Internal Procedures: Directs the flow of information and sequences the data

Data: Data is essentially the raw facts and figures that we input in the computer. The data gets processed via the
computer system and becomes information, which is processed and organized data. Information can then be
used for decision-making purposes.

Connectivity:  This is when the computers are linked to a network. It facilitates sharing of information, files, and
other facilities. Computers can connect to a network via LAN cables, Bluetooth, Wi-Fi, satellites etc. The internet
is the most obvious example of connectivity in a computer system.

Databases & Datawarehouse: This component is where the “material” that the other components work with
resides. A database is a place where data is collected and from which it can be retrieved by querying it using one
or more specific criteria. A data warehouse contains all of the data in whatever form that an organization needs.
Databases and data warehouses have assumed even greater importance in information systems with the
emergence of “big data,” a term for the truly massive amounts of data that can be collected and analyzed.

Role of It function in an organisation: 

Information technology is able to analyse specific data and help to plan the business journey accordingly using
the trends and information presented in data. IT can also efficiently equip businesses with plentiful tools which
can solve challenging business obstacles and help to plan the future growth of the company.

The Function of Communication

Communication has always been an important aspect of business, even long before information technology
came along. However, with the rise of computers and the internet, communication has been redefined. As a
result, communication is one of the most important IT roles in the organization. It has now become possible to
contact anyone no matter what part of the world they are in. When it comes to business, this capability is quite
useful.

Email - Video Conferencing - Collaboration Software - Social Media

The Function of Data Management

This is another one of the IT department functions that make it indispensable. With the increasing complexity of
the world of business comes an increasing amount of data that businesses have to deal with. This data also
comes in multiple dimensions. A business will see traffic in many different kinds of data, including text data, audio
data, and video data, among others. In order to control this data, a business will need an IT department to run
something called a database. The database will allow the business to do three things:

Store Data - Manage Data - Access Data

The Function of Marketing

Marketing has been a core aspect of business for as long as businesses have been around. With the rise of
computers and the internet, marketing campaigns are becoming increasingly digital. The IT department can help
with the marketing functions of a business in numerous ways:

Content Creation - Online Advertising - Ecommerce - Marketing Research

The Function of Process Improvement

It can prove to be quite important in the improvement of processes and efficiency in order to save the company
money. A small business could save on printing and copying costs by relying purely on paperless
communication. Collaboration software and video conferencing would save on logistics expenses which would
have been incurred every time different teams needed to meet and work together. It would also save on time as
not much time would be wasted on transit.

The Function of Enterprise Resource Planning

Enterprise resource planning is all about linking the different functions of an organization, such as accounting,
human resources, manufacturing, and sales, using software systems. These systems can help in operations as
well as strategic decision making. For a small business, the reduced complexity means these systems can be
installed one module at a time and can be scaled, as the need arises.

Inventory management - CRM - Management Information System

ERP - Suyash
DATA WAREHOUSE AND DATA MART

Types of data base

1. Operational database - RDBMS
2. Data warehouse
3. Big data

RDBMS - collection of files that store data- oracle, DB2, SQL Server
DBMS defines, creates and maintains a database

DBMS components - hardware, software, data,users,procedures

DBMS has - query engine, query optimizer, storage management, transaction managment

Data warehouse -
A data warehouse is a collection of data that statisticians can use for reporting and
analysis. You can create a data warehouse by extracting data from multiple sources,
such as databases and flat files

Characteristics -

Subject oriented
Scrubbed so that data from heterogeneous sources are standardized
Time series; no current status
Nonvolatile
Read only
Summarized
Not normalized; may be redundant
Data from both internal and external sources is present
Data Mart
A data mart is a database that can hold a subset of data from a larger database. Typically, data marts are
suitable for storing data on a specific subject or area, such as sales or customer data. Data marts can give users
specific data regarding one of the organization's departments or an aspect of the business.

3 mian types -
INdependent data mart
Not connected to enterprise data warehouse, can supplement warehouse or act as standalone datat store

Dependent data mart

Created from existing data warehouse
Subset of data in data warehouse 

Hybrid data mart

Flexible, manage large quantities integrated data with existing data warehouse and external sources

Differences between data warehouse and data mart

The key differences between data warehouse and data mart are:

 A data mart depends on a department that uses it for decision-making purposes, whereas a data
warehouse is an independent application system.
 All data within a data warehouse is in a centralized archive, while a data mart stores it in a decentralized
manner.
 Data marts use a bottom-up approach, focusing on specific data for their purpose, while data
warehouses use the top-down approach, centralizing large amounts of data and later deciding on how
to use it.
 A data mart has summarized data, while a data warehouse has detailed data.
 Data warehouses typically last longer and are more information-oriented and easier to manipulate,
whereas data marts usually have a shorter lifespan, are project-oriented and restricted.

Advanced Filters in Excel

The Advanced Filter gives you the flexibility to extract your records to another location on the same worksheet or
another worksheet in your workbook. It also allows the use of an "OR" statement in your Filters. (Example: Which
sales were less than $400 "OR" greater than $600). Excel’s AutoFilter filters things in place and doesn't allow you
to do complex filtering. To learn the basics of Advanced Filtering follow the steps below:

Styles - What are Styles?

Built-in styles are combinations of formatting characteristics that you can apply to text to quickly change its
appearance. For example, applying the Heading 1 style might make text bold, Arial, and 16 point, and applying
the Heading 2 style makes text bold, italic, Arial, and 14 point.

Styles application means easy Table of Contents generation

Styles cascade and so when you make one change to a document you have made them all

Styles allow you to use Out line View

Restrict formatting changes

Templates are much more efficient and kinder to others if they're based on styles

What if Analysis
In Excel, What-if analysis is a process of changing cells' values to see how those changes will affect the
worksheet's outcome. You can use several different sets of values to explore all the different results in one or
more formulas. What-if Excel is used by almost every data analyst and especially middle to higher management
professionals to make better, faster and more accurate decisions based on data. What-if analysis is useful in
many situations, such as:

You can propose different budgets based on revenue.

You can predict the future values based on the given historical values.

If you expect a certain value due to a formula, you can find different sets of input values that produce
the desired result.

To enable the what-if analysis tool go to the Data menu tab and click on the What-If Analysis option under the
Forecast section.

Scenario Manager: 

Goal Seek

Data Tables

Data Tables and Scenarios take sets of input values and project forward to determine possible results. Goal seek
differs from Data Tables and Scenarios in that it takes a result and projects backward to determine possible input
values that produce that result.

Scenario Analysis:

1. Scenario Manager

A scenario is a set of values that Excel saves and can substitute automatically in cells on a worksheet. Below are
the following key features, such as:

You can create and save different groups of values on a worksheet and then switch to any of these new
scenarios to view different results.

A scenario can have multiple variables, but it can accommodate only up to 32 values.

You can also create a scenario summary report, which combines all the scenarios on one worksheet.
For example, you can create several different budget scenarios that compare various possible income levels and
expenses, and then create a report that lets you compare the scenarios side-by-side.

Scenario Manager is a dialog box that allows you to save the values as a scenario and name the scenario.

Go to Data Tab –> Data Tools –> What-If Analysis –> Scenario Manager

In the Scenario Manager dialogue box, click on Add

In the Add Scenario dialogue box, fill in the following details:

Scenario name: Worst Case

Changing cells: $B$2,$B$3,$B$5 (you can also select it by pressing the CONTROL button and using
mouse left-click).

Comment: Any comment you wish you add. You can also leave this blank.

Click OK. This opens the Scenario Values dialogue box.

In the Scenario Values dialogue box, fill in the following values (since this is the worst case scenario,
enter the values accordingly

You can create a summary of all scenarios by clicking summary tab

2. Goal Seek
Goal Seek is useful if you want to know the formula's result but unsure what input value the formula needs to get
that result. For example, if you want to borrow a loan and know the loan amount, tenure of loan and the EMI that
you can pay, you can use Goal Seek to find the interest rate at which you can avail of the loan.

Goal Seek can be used only with one variable input value. If you have more than one variable for input values,
you can use the Solver add-in.

Goal Seek is a What-If Analysis tool that helps you to find the input value that results in a target value that you
want. Goal Seek requires a formula that uses the input value to give the result in the target value. Then, by
varying the formula's input value, Goal Seek tries to solve the input value.

Goal Seek works only with one variable input value. If you have more than one input value to be determined, you
have to use the Solver add-in. Below are the following steps to use the Goal Seek feature in Excel.

Step 1: On the Data tab, go What-If Analysis and click on the Goal Seek option.

Step 2: The Goal Seek dialog box appears.

Step 3: Type C9 in the Set cell box. This box is the reference for the cell that contains the formula that
you want to resolve.

Step 4: Type 57000 in the To value box. Here, you get the formula result.

Step 5: Type B9 in the By changing cell box. This box has the reference of the cell that contains the
value you want to adjust.

Step 6: This cell that the formula must reference goal Seek changes in the cell that you specified in the
Set cell box. Click Ok.

Mail Merge:

Mail merge lets you create a batch of documents that are personalized for each recipient. For example, a form
letter might be personalized to address each recipient by name. A data source, like a list, spreadsheet, or
database, is associated with the document. Placeholders--called merge fields--tell Word where in the document
to include information from the data source.

You work on the main document in Word, inserting merge fields for the personalized content you want to include.
When the mail merge is complete, the merge document will generate a personalized version of itself for each
name in the data source.

Word provides tools for incorporating your data into the following kinds of documents. Follow the links for details
about each type:

Letters that include a personalized greeting. Each letter prints on a separate sheet of paper. Create and
print a batch of personalized letters 

Email where each recipient's address is the only address on the To line. You'll be sending the email
directly from Word.

Envelopes or Labels where names and addresses come from your data source.

Create and print a batch of envelopes for mailing

Create and print sheets of mailing labels

Directory that lists a batch of information for each item in your data source. Use it to print out your contact list, or
to list groups of information, like all of the students in each class. This type of document is also called a catalog
merge.

Consolidate Data

To summarize and report results from separate worksheets, you can consolidate data from each sheet into a
master worksheet. The sheets can be in the same workbook as the master worksheet, or in other workbooks.
When you consolidate data, you assemble data so that you can more easily update and aggregate as necessary.
For example, if you have an expense worksheet for each of your regional offices, you might use consolidation to
roll these figures into a master corporate expense worksheet. This master worksheet might also contain sales
totals and averages, current inventory levels, and highest selling products for the entire enterprise

There are two ways to consolidate data, either by position or category.

Consolidation by position: The data in the source areas has the same order, and uses the same labels. Use this
method to consolidate data from a series of worksheets, such as departmental budget worksheets that have
been created from the same template.

Consolidation by category: When the data in the source areas is not arranged in the same order but uses the
same labels. Use this method to consolidate data from a series of worksheets that have different layouts but
have the same data labels.

E-COMMERCE
What are different stages of growth of e-business?

The three stages of the ecommerce business lifecycle

Stage 1 – Start-up & fast growth

Stage 2 – Plateauing growth or consolidation

Stage 3 – Renewed growth by implementing change (new platforms, features, resources/people or strategies)

These stages are akin to the way a gazelle jumps. There is a steep forward jump and then rest, before leaping
forward again. The same goes for the growth patterns of ecommerce businesses; growing fast and then
plateauing (resting).

Stage 1: Start-up & fast growth

Most ecommerce businesses go through an initial period of fast and in some cases unexpected growth. This is
usually to do with the popularity of the product they sell or market demand rather than the implementation of their
ecommerce platforms. Many businesses will choose platforms such as BigCommerce, Shopify or Magento. It’s
important that your business stays agile and responds quickly to change.

You don’t want to get caught up in complicated systems or handcuffed by too much process. Brands often enjoy
quick impact in this honeymoon period, before growth slows down and progression is halted by a kind of invisible
ceiling. This sees businesses moving into the second stage of the ecommerce lifecycle, which is a growth
plateau.

Stage 2: Plateauing growth or consolidation

I’ve found that many businesses reaching this second stage of the ecommerce lifecycle tend to panic and look for
quick-fix solutions to perceived issues. You need to understand that it’s natural for there to be a levelling off of
growth after the early spike. Once your business has gained traction, brand awareness and initial momentum, it’s
time to reflect on your progress, analyse your data and gain key insights to make measured and strategic
changes to your ecommerce website and your marketing.

It’s important for business owners to assign ample time and resources to research, to systemise and strategise to
work out the best ways to move to the next level and start achieving renewed growth.

Stage 3: Renewed growth

As I mentioned, many business owners think that the solution to the issue of plateauing growth is a quick fix or a
swift change of direction, which can be an ecommerce platform move or, perhaps, the recruitment of a new
ecommerce manager.

This is not necessarily thinking strategically. A replatforming project might indeed be the answer – perhaps to a
more advanced or modern ecommerce platform, like BigCommerce – but you need to make a clear business
case (including extensive research and risk assessments) before deciding to migrate platforms. Check out Space
48’s golden rules of replatforming blog to learn more.
In this third stage of the ecommerce lifecycle, the attempts to reinvigorate your company’s momentum and
growth should always be strategic. In my experience, the solution to plateauing growth may only require
realigning your business goals with changing customer trends, keeping up-to-date with new technology and
channel strategies.

Research and analysis is required to optimise processes and improve customer experience. This will steer your
strategy. Research may reveal issues and you might find you need to replatform, but there needs to be sound
reasoning behind decisions to implement technology and tools.

How is e-Governance different from e-Commerce?

Explain the growth of IT in India with specific emphasis on Rural India.

There has been a 45 per cent growth in ‘active internet users' in rural India since 2019, according to a study by
Nielsen, a global company for audience measurement, data and analytics.

The Bharat 2.0 Internet report said that female active internet users grew by 61 per cent since 2019. The report
said that India has 646 million active Internet users aged 2 years and above as of December 2021.

Rural India has 352 million internet users--almost 20 per cent higher than urban. The study also revealed that
almost 60 percent of the rural population is still not actively using the internet, paving headroom for further
growth. Urban India on the other hand has registered a 59 per cent penetration growth with 294 million active
internet users.
https://www.bain.com/insights/innovation-in-indias-rural-economy/
Multiple enablers are priming the rural economy for future growth:

Rural digitisation and technology affordability. Rural India is becoming digitally savvy, with smartphone and
internet usage increasing 30%+ CAGR in the last four to five years. In 2020, there were ~300 million internet
users in rural India. The Prime Minister Wi-Fi Access Network Interface scheme is delivering broadband services
to rural areas, with a goal to create 2 million public Wi-Fi access points by the end of 2021—up from 550,000
existing access points. Online classes during the pandemic were a major catalyst for digital adoption amongst
rural populations because they forced many new users to explore advanced functionalities.

There has been a significant decline in the cost of technology access as well. Data costs decreased 64% over
the last three years, from INR 18.5/GB in 2018 to ~INR 6.7 in 2021. Lower-cost smartphone devices are
improving access as well. A Jio-Google partnership introduced a smartphone priced at ~INR 6.5K, for example.

Financial inclusion initiatives. Aadhaar and Aadhaar-enabled banking and payments systems boosted rural
financial inclusion. The system eased documentation requirements for processes like opening bank accounts and
availing the benefits of government schemes and subsidies. Access to formal banking also increased significantly
with the introduction of PMJDY. Roughly 43.76 Cr bank accounts have been opened as of October 2021. The
Reserve Bank of India set up an INR 345 Cr Payment Infrastructure Development Fund to create 30 lakh digital-
payment touchpoints every year. According to Bain-CII estimates, about 30% of the rural ecosystem is adopting
digital payment and digital commerce solutions through UPI apps like PhonePe and Google Pay.

Community empowerment. Traditionally, FPOs and farmer producer companies (FPCs) have been developed
to increase bargaining power and provide economies of scale. These organisations often serve as important and
trusted connection points between farmers and the public and private sectors. The government introduced the
Model Contract Farming Act in 2018 to empower communities to enter into contract farming agreements with
bulk purchasers (e.g., exporters, agro-industries) on behalf of farmers. To facilitate online trading, the
government also allowed FPOs and FPCs to act as aggregators on the National Agriculture Market (eNAM)
platform so they can trade from their collection centres.

Improved infrastructure and access. Physical connectivity to rural areas continues to improve through road
and railway infrastructure projects. In 2000, the Pradhan Mantri Gram Sadak Yojana was introduced to provide
all-weather road connectivity to rural villages. About 225,000 kilometres of new roads have been built in the last
five years, bringing the total of new roads to 681,000 kilometres. Railway infrastructure has also been expanding,
with around 800 new trains launched in the last five years.

Investor focus. Investments in the agri-tech space have skyrocketed in the last four years, growing at more than
50% p.a. to aggregate ~INR 6.6K Cr till 2020. Investors have focused on opportunities that address systemic
issues, building sustainable systems, and ensuring inclusive growth. Similarly, finance technology has recently
attracted investors. Significant domestic and international investments are being pumped into the sector to
improve efficiency and access to credit.

Surge of start-ups. These ecosystem developments have drawn multiple new players into the market to offer
technology-based solutions like offtake marketplaces, storage and transportation services, and agronomy
advisory services. Large traditional players are adopting technology to reduce operational costs and scale, either
by developing in-house solutions or by partnering with emerging players. Several global tech giants (e.g., IBM,
Microsoft) see this space as a new growth opportunity and are investing in innovative solutions for crop health
monitoring and yield estimation.

e-Choupal is an initiative of ITC Limited, a conglomerate in India, to link directly with rural farmers via the
Internet for procurement of agricultural and aquaculture products like soybeans, wheat, coffee, and prawns. e-
Choupal tackles the challenges posed by Indian agriculture, characterized by fragmented farms, weak
infrastructure and the involvement of intermediaries.[1] The programme installs computers with Internet access in
rural areas of India to offer farmers up-to-date marketing and agricultural information

What do you think are the impediments in harvesting the benefits accruing from IT in India?

Digital India is an outcome of many innovations and technological advancements. The 'Digital India' programme,
is an initiative of honourable Prime Minister Mr. Narendra Modi. The vision of the programme is focus on three
areas : creation of digital infrastructure ,delivery of governance and services on demand and digital
empowerment of citizens. The Digital India drive is a dream project of the Indian Government to remodel India
into a knowledgeable economy and digitally empowered society, with good governance for citizens by bringing
synchronization and coordination in public accountability, digitally connecting and delivering the government
programs and services to mobilize the capability of information technology across government departments.
There are many roadblocks in the way of its successful implementation like digital illiteracy ,poor infrastructure,
low internet speed, lack of coordination among various departments, issue pertaining to taxation etc. These
challenges need to be addressed in order to realize the full potential of this programme.

ICT is evolving at a very fast pace. Our grandparents grew up in a society with no telephone; our parents in a
society in which the radio was the first and television was the last source of information. We live in a world of
internet and the new generation in the wireless world. As a result the world around us also has changed
dramatically over the years. This dramatic change in the field of ICT is a result of innovations in the field of
science, defense and business. These innovations have reduced the size of the technological tools and
increased the speed in which they operate to process data and communicate information.
Digitalization is one of the most fundamental period of transformation we have ever witnessed. The literal
meaning of digitalization gives an apparent idea of development and technology dependent world. Digital India is
a programme based on technology with a vision to transform India to a digitally empowered society and
knowledge economy. Digital India was launched under the flagship of the Prime Minister of India Narendra Modi
on 1 July 2015 with an objective of connecting rural areas with high-speed Internet networks and improving
digital literacy.Digital India symbolizes the Government of India's vision for connecting and empowering 125 crore
citizens; creating unprecedented levels of transparency and accountability in governance; and leveraging
technology for quality education, health care, farming, financial inclusion and empowering citizens. Under the
'Digital India' Programme, technology will play a central role to achieve easy, effective and economical
governance.

Generic vs specific IT applications:

Generic Software-

There are some major benefits to choosing generic IT products instead of industry-focused software. In fact,
many small business owners we reached out to were proponents of general solutions specifically because they'd
had negative experiences with niche products.

In addition to having more robust customer service, general products tend to have larger user bases, which often
translates into more learning resources and online support. For example, an estimated 75 million websites are
powered by WordPress. That's a lot of users - and a lot of use cases. It’s unlikely that any SME will have a
WordPress scenario or problem that is new or unique, which leads to quicker solutions.

Furthermore, most software experts agree that generic systems often offer a smaller upfront cost. However, they
also caution retailers to consider any additional costs that might be tacked on as the business grows and requires
different features.

The initial purchase cost is only one of the possible price considerations for off-the-shelf software because
upgrades, software support, monthly or annual licensing fees, per-website or installation licenses, and per-seat
costs can all inflate expenditure to considerably higher levels. Over time these fees may actually exceed the
costs of a customized solution without any of the advantages.

Pros

 Lower up-front cost

 Feature rich
 May meet most of your business needs
 Support is often included or can be added with a maintenance contract
 User communities across the internet and forums provides self-help support
 Quick to deploy
 All design, development, QA/testing is handled by vendor

Cons

 May come with upgrade costs, licensing fees, or per-seat costs

 Will likely not meet all business needs - a square peg for a round hole
 May include features and functions that are not wanted
 You may have to change business processes to match the software functionality
 Will be variably out-of-sync with your business vernacular
 May include security or technical solutions that do not conform to internal business guidelines
  May have infrastructure/platform requirements that your business cannot support, or can with additional
cost
 High customization costs, or impossible to customize
 Feature requests will likely go unheard and future enhancements may not be relevant to your business
 Obsolescence is possible. Slow to evolve with your business or industry, so your business may need to
keep processes matching the software, change software in the future, or introduce additional systems to
bridge the gap between software and future processes

 Industry Specific-

Industry leaders buy industry products. Many of the business owners we asked stated that they chose an
industry-specific solution in order to gain a competitive advantage or at least keep up with their biggest
competitors. A one-size fits all solution would miss out on key industry features and provide a solution that would
be less cost-effective in the long-term.

One of the benefits of using industry-specific software is familiarity; many developers generally have a greater
understanding of industry needs and procedures. In addition, those systems usually contain industry-specific
features that help businesses of all sizes streamline their processes.

Software companies that develop industry-specific software have made substantial financial investments, plus
years of software development efforts to understand the industry vertical-market requirements and incorporate
unique productivity tools, which provide business advantages over generic software products that cater to a mass
audience.

When general software solutions are designed, they're created with the most popular use cases in mind, and
some industries may have to make substantial customizations to make generic solutions work for them. In
addition to honing the product to meet a specific type of user's needs, industry-specific solutions often have fewer
overall settings and options, allowing for a streamlined design that's less overwhelming. Having a limited set of
features and settings can make the implementation process faster and it can even improve the user experience.

While the starting costs for industry-specific solutions vary widely according to feature set and business focus
(Enterprise vs. SME), they generally tend to be more expensive than their broad-use counterparts.

Pros

 You can start with the core-essentials and add features and functions later
 A solution tailored to match business needs, processes, and security requirements
 Easier to orientate staff to the software, because it follows your business practices and vernacular
 Can be developed using a software language and infrastructure/platform matching your business needs
vs. those of a ‘mass market’ nature
 Possible integration with legacy and additional systems
 You own the software
 Possible competitive advantage
 Direct vendor support ultimately provides for an extensible, evolving solution that can stay current with
your business
 No obsolescence and investment in updates and enhancements is 100% controlled
 Changes can be made quickly
 Often without any additional licensing fees

Cons

 Higher upfront costs

 Change and feature requests may be billable
 Requires developer sources (with inherited risks)
 Requires developer communication during the software development cycle: requirements, design,
development, QA/testing, and training will require business involvement
 No user community to provide self-help (but direct relationship with vendor negates need for this)