Unit 3: Computer Software

3.6 Web-Based Software Applications

Introduction

In the contemporary business landscape, agility and accessibility are paramount. Traditional software, which required installation on individual computers, is rapidly being supplemented and replaced by a more flexible model: web-based software. Also known as web applications or “cloud-based software,” these applications run on remote servers and are accessed through a web browser. For business students, understanding web-based software is crucial as it forms the backbone of modern operations, collaboration, and service delivery across all functional areas of an organization.

What is Web-Based Software?

Web-based software is an application program that is stored on a remote server and delivered over the internet through a browser interface. Unlike traditional desktop applications that are installed and run from your local computer’s hard drive, web applications are accessed via a URL (e.g., https://mail.google.com).

Key Characteristics:

  • No Local Installation: Users do not need to install the software on their devices. The only requirement is a compatible web browser and an internet connection.
  • Centralized Data: All data is stored centrally on the provider’s servers, not on individual user computers. This facilitates collaboration and data consistency.
  • Cross-Platform Compatibility: Since they run in a browser, web applications are generally platform-independent. They work on Windows, macOS, Linux, and even mobile operating systems.
  • Automatic Updates: The software is maintained and updated by the provider on the server. Users always have access to the latest version without needing to perform manual updates.

How It Works: The Client-Server Model

Web applications operate on a client-server model:

  1. Server-Side: The application logic and data are stored and processed on powerful remote computers called servers. These servers are managed by the software provider.
  2. Client-Side: The user interacts with the application through their local device’s web browser (e.g., Chrome, Firefox, Safari), which acts as the client. The browser sends requests to the server and displays the information it receives back.

The SaaS (Software as a Service) Model

Most business-oriented web applications today are delivered through a Software as a Service (SaaS) model. This is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.

Instead of buying a software license outright, businesses pay a recurring fee (monthly or annually) to use the application. This model is highly attractive for businesses as it converts a large capital expenditure (buying software) into a predictable operational expenditure (subscribing to a service).

Examples of popular SaaS applications:

  • Google Workspace (Gmail, Docs, Sheets)
  • Microsoft 365 (Word, Excel, Teams online)
  • Salesforce (CRM)
  • Trello (Project Management)

Advantages and Disadvantages for Business

Advantages Disadvantages/Challenges
Accessibility & Flexibility Internet Dependency
Access from any device, anywhere, anytime. No internet connection means no access to the app.
Cost-Effectiveness Security & Data Privacy Concerns
Lower upfront costs (no large license fees). Data is stored on third-party servers.
Scalability Performance Issues
Easily add or remove users as the business grows. Can be slower than desktop apps, dependent on internet speed.
Simplified Maintenance Limited Customization
Provider handles all updates, backups, and security. Less control over features compared to custom-built software.
Enhanced Collaboration Vendor Lock-in
Multiple users can work on the same data simultaneously. Difficult and costly to switch to a different provider.

Business Applications Across Functional Areas

Web-based software is not limited to one department; it is integrated across the entire organization.

Finance and Accounting

Web-based applications streamline financial operations, improve accuracy, and provide real-time insights.

  • Online Accounting Software: Platforms like QuickBooks Online or Zoho Books allow accountants to manage ledgers, invoices, and payroll from anywhere.
  • Corporate Internet Banking: Businesses use web portals provided by banks to manage accounts, process payments, handle payroll, and view financial statements.
  • Expense Management: Tools like Expensify allow employees to submit expense reports online, simplifying reimbursement processes.

Human Resources (HR)

Cloud-based HR Management Systems (HRMS) automate and centralize HR functions.

  • Recruitment & Applicant Tracking Systems (ATS): Platforms like Greenhouse or Workday help HR managers post jobs, track applicants, and schedule interviews.
  • Payroll & Attendance Management: Web-based systems automatically calculate salaries, track leave, and ensure compliance with labor laws.
  • Employee Self-Service Portals: Employees can log in to view their payslips, request leave, and update personal information without needing to contact HR directly.

Operations and Supply Chain

Web applications are critical for managing the day-to-day operations of a business.

  • Customer Relationship Management (CRM): Systems like Salesforce or HubSpot help manage customer data, track sales pipelines, and automate marketing efforts.
  • Enterprise Resource Planning (ERP): Cloud ERPs like SAP S/4HANA Cloud or Oracle NetSuite integrate all core business processes—from manufacturing and inventory to sales and finance—into a single system.
  • Project Management: Tools like Asana, Trello, or Jira help teams plan, execute, and track projects, fostering collaboration and ensuring deadlines are met.

Marketing and Sales

Digital marketing heavily relies on web-based tools to reach and engage customers.

  • Social Media Management: Platforms like Hootsuite or Buffer allow marketers to manage multiple social media accounts, schedule posts, and analyze performance from a single dashboard.
  • Email Marketing Services: Tools like Mailchimp enable businesses to create and send professional email campaigns and track their effectiveness.
  • Web Analytics: Google Analytics provides deep insights into website traffic, user behavior, and conversion rates, helping businesses optimize their online presence.

Real-World Examples from Nepal

1. Digital Wallets: eSewa and Khalti (Finance & Operations)

eSewa and Khalti are leading digital payment service providers in Nepal. They are prime examples of web-based and mobile applications that have transformed how businesses and consumers handle transactions.

  • Business Application: For businesses (from small shops to large corporations), these platforms serve as a payment gateway. They can accept payments from customers online via their website or in-store using QR codes. This simplifies the sales process (Operations) and cash management (Finance). Businesses also use these platforms to pay suppliers, disburse salaries, and manage utility bill payments, integrating them deeply into their financial operations.

2. E-commerce Platform: Daraz Nepal (Marketing, Operations, Finance)

Daraz is Nepal’s largest online marketplace. Its entire business model is built upon a sophisticated web-based application that serves multiple stakeholders.

  • Business Application: For thousands of Nepali sellers, the Daraz Seller Center is a powerful web-based application. Through this portal, sellers can:
    • Manage Inventory and list products (Operations): Update stock levels, add new products, and set prices.
    • Process Orders (Operations): View incoming orders, print shipping labels, and track delivery status.
    • Run Marketing Campaigns (Marketing): Participate in sales events and promote their products on the platform.
    • Track Finances (Finance): Monitor their sales revenue, view payment statements, and manage their account balance.

3. Corporate Internet Banking (Finance)

Commercial banks in Nepal, such as Nabil Bank (NBank) or NIC Asia Bank (MoBank), offer robust web-based internet banking portals specifically for their corporate clients.

  • Business Application: These portals are essential tools for the finance departments of businesses. They move beyond simple balance inquiries and allow companies to perform critical financial tasks online, such as:
    • Bulk Salary Payments: Uploading a single file to pay all employees at once (an HR/Finance function).
    • Vendor Payments: Scheduling and making payments to suppliers.
    • Letter of Credit (LC) Applications: Applying for trade finance instruments required for international trade.
    • Real-time Reporting: Generating and downloading detailed account statements for auditing and reconciliation.

Key Takeaways

  • Web-based software is accessed via a web browser and does not require local installation.
  • It operates on a client-server model and is most commonly delivered via a SaaS (Software as a Service) subscription model.
  • Key advantages for businesses include lower costs, greater accessibility, scalability, and simplified maintenance.
  • Major challenges include dependency on internet connectivity and data security concerns.
  • Web-based applications are integral to all modern business functions, including Finance, HR, Operations, and Marketing, enabling efficiency and collaboration.

Review Questions

  1. What are the three main differences between traditional desktop software and web-based software?
  2. Explain the Software as a Service (SaaS) model and why it is financially attractive for a new startup business.
  3. Provide one example of a web-based application that would be used by a company’s HR department and explain its function.
  4. Using Daraz Nepal as an example, describe how a single web-based platform can serve multiple business functions (e.g., operations and marketing).
  5. What is the biggest risk a business faces when it relies heavily on web-based software, and how might it mitigate that risk?