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MANAGEMENT INFORMATION SYSTEMS NOTES COURSE CONTENTS

Definition of Management Information System and Components of MIS.........................................8

Significance of MIS......................................................................................................................9

Nature and Scope of MIS..........................................................................................................10

Objectives of Management information Systems (MIS)..................................................................10

Roles Played by Management Information System in an organization............................................11

Requirements of Management Information Systems.......................................................................12

Information System...................................................................................................................13

System.........................................................................................................................................13

Information................................................................................................................................13

Information, Knowledge and Business Intelligence.........................................................................13

Information/Data Collection Techniques.........................................................................................14

Interviews: Data is collected by the system analyst by following a rigid procedure and collecting the answers to a set of pre-conceived questions through personal interviews..............................14

Representation of Information.................................................................................................14

Organization of Information.....................................................................................................14

The Changing Face of Business Environment.....................................................................................15

Business information.................................................................................................................17

Business and Information Technology.....................................................................................18

Components of information systems........................................................................................19

Types of Decision Support System...............................................................................................25

Components of Decision Support System....................................................................................26

Components of DSS.......................................................................................................................26

7. Classification of Decision Support System...........................................................................28

Management Reporting System.......................................................................................................30

Accounting and Finance System:.....................................................................................................31

Comparison of Information System and Information Technology........................................32

Future of Information System and Information Technology.................................................33

Present Shock and Generation Y and their Impact on Society and Businesses............................34

Groupware...................................................................................................................................35

Internet and Porter’s Five Force Model.......................................................................................36

Internal Technology Framework: 7S Framework...........................................................................37

The Alignment of Technology and Corporate Planning.................................................................38

Organizational Structure..........................................................................................................39

WRITTEN AND COMPILED BY DR. MUCHELULE YUSUF , PhD

Systems and Organizational Productivity.....................................................................................40

What is Business Intelligence?..................................................................................................41

Information Technology as Driving Force for Innovation...................................................................42

Innovation and Information Technology.................................................................................43

Advantages.................................................................................................................................51

Disadvantages..............................................................................................................................51

SAP R/3 and B1:.............................................................................................................................52

LN/Baan..........................................................................................................................................52

Microsoft Dynamics NAV and AX 2009.........................................................................................53

Business Continuity Planning (BCP).....................................................................................................54

Project Management and Initiation..................................................................................................55

BCP Development Phase.................................................................................................................56

Decision-Making Process................................................................................................................57

Step 3: Principles for Judging the Alternatives.............................................................................58

Process and Modeling in Decision-Making.....................................................................................59

Sensitivity Analysis.........................................................................................................................60

Operations Research Techniques.....................................................................................................61

File Definition and Data Records.........................................................................................................62

Introduction...............................................................................................................................65

Example of an object oriented database model................................................................................71

9. Airline Reservation system: Same as railway reservation system, airline also needs DBMS to keep records of flights arrival, departure and delay status.........................................................73

General disadvantage of Data base Management system...........................................................75

Emerging Trends in Information Technology..................................................................................77

Edge Computing for Iota.................................................................................................................79

Characteristics of Data Mining:.......................................................................................................86

Non-volatile:................................................................................................................................90

Integrated:...................................................................................................................................90


INTRODUCTON TO MANAGEMENT INFORMATION SYSTEMS

Definition of Management Information System and Components of MISMIS is the use of information technology, people, and business processes to record, store and process data to produce information that decision makers can use to make day to day decisions. MIS is the acronym for Management Information Systems. MIS is a collection of systems, hardware, procedures and people that all work together to process, store, and produce information that is useful to the organization. Management information system is a system designed in an organization to provide right information at the right time to facilitate managerial decision making. The need for management information system has arisen because managerial decision making has become very complicated due to fast changing economic, political, social, and technological changes It is also known as the Information System, the Information and Decision System, the Computer- based information System.

MIS is defined as a system that consists of people, machines, procedures, data models and databases as the elements of the system. The system executes the followings:

1. Collection of data from internal and external sources of company2. Processing of data3. Proper flow of processed data or management of information to the managers to assist

them in the procedure of decision-makingThe MIS has more than one definition, some of which are given below.

The MIS is defined as a system which provides information support for decision making in the organization.

The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision making function in the organization.

The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization.

The MIS is defined as a Computer based Information System. Management Information System (MIS) is a combination of principles, theories

and practices of management, which play an important role in business organization in the planning and decision-making process. It provides information for the personnel at various levels of management for performing their respective jobs. The management information system can be compared with information technology (IT). IT can be considered as a sub-system of MIS.

Significance of MIS

MIS is defined as the field of management where timely and reliable information plays a very important role. This information is obtained through a logical and well-structured method of collecting information and processing of the collected information, which helps the decision-makers in carrying out the decisions. MIS is very significant these days because the term information is considered equally important to the three M have related to the business industry namely money, materials, men and machines.


The significance of a planned, analysed, designed and maintained MIS is as follows:

Helps in progress and growth of the business and management infrastructure in increasing business complexities by providing timely, useful and reliable information. This information is provided to the management for taking quick, rational and speedy decisions.

Helps in globalization and liberalization of the organizations that need to compete not only locally but globally too.

MIS assists decision-makers in organizations by providing Management Information (MI) at various stages of decision-making. Whereas MIS if in case is not maintained properly may provide inaccurate or irrelevant information that may prove costly to the organization.

Nature and Scope of MIS

MIS is supposed to have borrowed the management concepts from various disciplines such as accounting, computing, organizations, management and operations, because of this interdisciplinary nature of MIS, it is considered both as an art and a science.Components of MIS

The major components of a typical management information system are; People – people who use the information system Data – the data that the information system records Business Procedures – procedures put in place on how to record, store and analyze

data Hardware – these include servers, workstations, networking equipment, printers, etc. Software – these are programs used to handle the data. These include programs such

as spreadsheet programs, database software, etc.

Objectives of Management information Systems (MIS)1. Data Capturing: MIS capture data from various internal and external sources of

organization. Data capturing may be manual or through computer terminals. 2. Processing of Data: The captured data is processed to convert into required

information. Processing of data is done by such activities as calculating, sorting, classifying, and summarizing.

3. Storage of Information: MIS stores the processed or unprocessed data for future use. If any information is not immediately required, it is saved as an organization record, for later use.

4. Retrieval of Information: MIS retrieves information from its stores as and when required by various users.

5. Dissemination of Information: Information, which is a finished product of MIS, is disseminated to the users in the organization. It is periodic or online through computer terminal

Characteristics of Management Information System (MIS)1. System approach: MIS follows the system approach, which implies a step by step

approach to the study of system and its performance in the light of the objective for


which it has been constituted. It means taking an inclusive view at sub-systems to operate within an organization.

2. Management-oriented: The management-oriented characteristic of MIS implies that top-down approach needs to be followed for designing MIS. A top-down method says the initiation of system development determines management requirements as well as business goals. MIS implies the management dynamically to the system development towards the completion of management decision.

3. As per requirements: The design and development of MIS should be as per the information required by the managers. The required design and development information is at different levels, viz., strategic planning, management control and operational control. It means MIS should cater to the specific needs of managers in the hierarchy of an organization.

4. Future-oriented: The design and development of MIS should also be future purpose so that the system is not restricted to provide only the past information.

5. Integrated: A complete MIS is a combination of its multiple sub-components to provide the relevant information to take out a useful decision. An integrated system, which blends information from several operational areas, is a necessary characteristic of MIS.

6. Common data flows: This concept supports numerous basic views of system analysis such as avoiding duplication, combining similar functions and simplifying operations. The expansion of common data flow is a cost-effectively and logical concept.

7. Long-term planning: MIS should always develop as a long-term planning because it involves logical planning to get success of an organization. While developing MIS, the analyst should keep future oriented analysis and needs of the company in mind.

8. Relevant connection of sub-system planning: The MIS development should be decomposing into its related sub-systems. These sub-systems must be meaningful with proper planning.

9. Central database: It contains data in tabular form. The data base is responsible to operations like insertion, deletion, updating of records. This database covers information related to inventory, personnel, vendors, customers, etc. the data stored in the database.

Roles Played by Management Information System in an organization 1. Helps in Decision making: - Management Information System (MIS) plays a

significant Role in Decision making Process of any Organization. Because in Any organization decision is made on the basis of relevant Information and relevant information can only be Retrieving from the MSI.

2. Helps in Coordination among the Department: - Management information System is also help in establishing a sound Relationship among every persons of department to department through proper exchanging of Information’s.

3. Helps in Finding out Problems: - As we know that MIS provides relevant information about every aspect of activities. Hence, if any mistake is made by the management then Management Information Systems (MIS) Information helps in Finding out the Solution of that Problem.


4. Helps in Comparison of Business Performance: - MIS store all Past Data and information in its Database. That why management information system is very useful to compare Business organization Performance. With the help of Management information system (MIS) Organization can analyze his Performance means whatever they do last year or Previous Years and whatever business performance in this year and also measures organization Development and Growth.

5. Efficient operations: MIS improves operational flow by providing required information at right time. The managers are able to perform their tasks with higher ease and that improves the productivity of the business.

6. Better communication and connectivity: A central MIS help improve the entire communication channel and provide better connectivity throughout the organization across all levels.

7. Decision makers need information to make effective decisions. Management Information Systems (MIS) make this possible.

8. Record keeping – management information systems record all business transactions of an organization and provide a reference point for the transactions.

Requirements of Management Information Systems Essential requirements of an effective MIS include:

1. Qualified System and Management Staff: The prerequisite of an effective MIS is that it should be managed by qualified officers. These officers should have a mutual understanding about the roles and responsibilities of each other and be understand clearly the view of their fellow officers. For this, each organization should have two categories of officers: (a) System and Computer Experts who in addition to their expertise in their subject area, they should also be capable of understanding management concepts to facilitate the understanding of problems asked by concern. They should also be clear about the process of decision making and information requirements for planning. (b) Management experts who should also understand quite clearly the concepts and operations of a computer. This basic knowledge of computer will be useful will place them in a comfortable position, while working with systems, technicians in designing or otherwise, of the information system.

2. Futuristic Perspective: An effective MIS should be capable of meeting the future requirements of its executives as well. This capability can be achieved by regular monitoring and updating the MIS.

3. Support of Top Management: For a management information system to be effective, it must receive the full support of top management. The Reasons for this are: (a) Subordinate managers are usually lethargic about activities which do not receive the support of their superiors. (b) The resources involved in computer-based information system are larger and are growing larger and larger in view of importance gained by management information system.


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4. Common Database: It is an integrated collection of data and information which is utilized by several information subsystems of an organization. A common database may be defined as a super file which consolidates and integrates data records formerly stored in a separate data file. Such a database can be organized as an integrated collection of data records into a single super file or it can be organized as an integrated collection of several data file.

5. Control and maintenance of MIS: Control of the MIS means the operation of the system as it was designed to operate. Sometimes, users develop their own procedures or short cut methods to use the system which reduces its effectiveness

Information System

An information system, therefore, can be defined as set of coordinated network of components which act together towards producing, distributing and or processing information. An important factor of computer based information system is precision, which may not apply to other types of systems.System

In a system, network of components work towards a single objective, if there is lack of co-ordination among components, it leads to counterproductive results. A system may have following features:

Adaptability: some systems are adaptive to the exterior environment, while some systems are non-adaptive to the external environment. For example, anti-lock braking system in car reacts depending on the road conditions, whereas the music system in the car is independent of other happening with the car.

Limitation: every system has pre-defined limits or boundaries within which it operates. This limits or boundaries can be defined by law or current state of technology.

Information

Common definition of information is data. However, data is no true information. Data gets its meaning and significance if only it is information. Information is represented with data, symbols and letters.Information has following properties:

Objective: One of the key properties of information is its objectiveness. Objective information is a key component of any modern scientific research.

Subjective: Set of information which is useful to science may be abstract or irrelevant for others. Therefore, information is subjective also.

Temporary: Information is temporary with every update in the database.

Information, Knowledge and Business Intelligence

Professor Ray R. Larson of the School of Information at the University of California, Berkeley, provides an Information Hierarchy, which is:


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• Data - The raw material of information. • Information - Data organized and presented by someone. • Knowledge - Information read, heard, or seen, and understood. • Wisdom - Distilled and integrated knowledge and understanding.

Scott Andrews' explains Information Continuum as follows:

• Data - A Fact or a piece of information, or a series thereof. • Information - Knowledge discerned from data. • Business Intelligence - Information Management pertaining to an organization's

policy or decision-making, particularly when tied to strategic or operational objectives.

Information/Data Collection Techniques

The most popular data collection techniques include:

• Surveys: A questionnaires is prepared to collect the data from the field. • Secondary data sources or archival data: Data is collected through old records,

magazines, company website etc. • Objective measures or tests: An experimental test is conducted on the subject and the

data is collected. Interviews: Data is collected by the system analyst by following a rigid procedure and collecting the answers to a set of pre-conceived questions through personal interviewsRepresentation of Information

Information is represented with help of data, numbers, letters or symbols. Information is perceived in a way it gets represented. Decimal system and binary system are two ways of representing information. The binary circuits of computers are designed to operate under two states (0, 1).Organization of Information

The way in which information is organized directly affect the way the information is managed and retrieved. The simplest way of organizing information is through linear model. In this form, data is structured one after another, for example, in magnetic tapes, music tapes, etc.

In a binary tree model, data is arranged in an inverted tree format where it assumes two values.The hierarchy model is derived from a binary tree model. In this model, branch can assume multi-value data, for example in the UNIX operating system this model is used for its file system.The hypertext model is another way of organizing information; World Wide Web is an example of this model.


Random access model is another way of organizing information. This model is used for optimum utilization of available computer storage space. Here data is stored in specified location under direction of the operating system.Networking Information: Information is networked through network topology. The layout of all the connected devices, and it provides virtual shape or structure to the network is known as network topology. The physical structure may not be representative of network topology. The basic types of topology are bus, ring, star, tree and mesh. The above topologies are constructed and managed with help of Hubs, Switches, Bridges, Routers, Brouters and Gateways.Securing Information: Security of information as well as an information system is critical. Data back-up is on the way through which Information can be made secured. Security management for network and information system is distinct for different setup like home, small business, medium business, large business, school and government.The Changing Face of Business Environment

Biasness of InformationWhile choosing the appropriate method of communicating information a care has to be taken to see that is not biased. For example, while using the techniques of classification or filtering the information, it should not happen that certain information gets eliminated or does not get classified. That is, a deliberate bias in covering certain information is to be avoided. This bias enters because people try to block sensitive information which affects them. To overcome this problem, a formal structure of organization should be adopted and the type of information and its receiver should be decided by the top management. Information bias happens when key information is either measured, collected, or interpreted inaccurately. Information bias refers to bias arising from measurement error. Information bias is also referred to as observational bias and misclassification.Misclassification thus refers to measurement error. There are two types of misclassification in epidemiological research: non differential misclassification and differential misclassification. Non-differential misclassificationNon-differential misclassification is when all classes, groups, or categories of a variable (whether exposure, outcome, or covariate) have the same error rate or probability of being misclassified for all study subjects. Differential misclassificationDifferential misclassification occurs when the error rate or probability of being misclassified differs across groups of study subjects. For example, the accuracy of blood pressure measurement may be lower for heavier than for lighter study subjects.Preventing information biasness

1. Using standard measurement instruments e.g. questionnaires, automated measuring devices (for measurement of blood pressure etc.)

2. Collecting information similarly from the groups that are compared3. Use multiple sources of information e.g. postal/ online/ face-to-face via interview).


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https://en.wikipedia.org/wiki/Observation#Observational_bias

https://en.wikipedia.org/wiki/Observational_error

https://en.wikipedia.org/wiki/Bias_(statistics)

Types of Information The information can be classified in a number of ways provide to better understanding as outlined below:

Action Verses No-Action Information: The information which induces action is called action information. ‘No stock ‘reports calling a purchase action is action information. The information which communicates only the status is No-Action Information. The stock balance is no-action information.

Recurring Verses No-Recurring Information: The information generated at regular intervals is recurring information. The monthly sales reports, the stock statement, the trial balance, etc. are recurring information. The financial analysis or the report on the market research study is nonrecurring information.

Internal and external information: The information generated through the internal sources of the organization is termed as Internal Information, while the information generated through the govt. reports, the industry survey etc., termed as External Information, as the sources of the data are outside the organization.

The information can also be classified, in terms of its application: Planning Information: Certain standard norms and specifications are used in

planning of any activity. Hence such information is called the Planning Information. e. g. Time standard, design standard.

Control Information: Reporting the status of an activity through a feedback mechanism is called the Controlling Information. When such information shows a deviation from the goal or the objective, it will induce a decision or an action leading to control.

Knowledge Information: A collection of information through the library records and the research studies to build up a knowledge base as information is known as Knowledge Information.

Organization Information: When the information is used by everybody in the organization, it is called Organization Information. Employee and payroll Information is used by a number of people in an organization.

Functional/ Operational Information: When the information is used in the operation of a business it is called Functional/Operational Information.

Database Information: When the information has multiple use and application, it is called as database information. Material specification or supplier information is stored for multiple users.

Strategic Advantages of Information Technology Increases Production and Saves Time: Businesses today more than ever use

technology to automate tasks. A good example is a bakery which uses electronic temperature sensors to detect a drop or increase in room or oven temperature in a bakery. These sensors send information directly to the operator, reporting any temperature change. This temperature system saves the bakery time, and it also results in consistent higher quality products.

Improves Communication: With the help of communication technology tools like phones, video conferencing, electronic mail or instant messenger just to mention a few, movement of information within an organization or business has become


instantaneous. Employees can easily move data across departments without having any interruptions. Tools like electronic mail, e-fax, mobile phones and text messaging enhance the movement of information data among employees, customers, and business partners or suppliers, this allows for greater interconnectivity throughout internal and external structures.

Improves Data Storage, File Management, And Data Reporting/ Analysis: Businesses use cloud hosting services to store and backup business data. Also, it saves on paperwork and makes transfer and access to data possible remotely. With services like Dropbox.com, business owners can access their data anytime anywhere. Additionally, databases today allow for greater correlation of information, analysis of this data relationship can encourage better and more informed decision making, resulting in potential growth.

Improves Financial Management: Accounting software like Quick Books, Bookkeeper, Sage 50, and Account Edge perform various accounting tasks in a business. Business owners can easily balance their books with less experience in accounting because this software is well equipped with every tool needed in accounting. It allows for faster processing and calculation of financial information and the recording or storing of financial data that may need to be referenced in the future.

Improves Business to Consumer Relationship: Businesses have embraced the social technology to interact with their consumers and fans, creating a strong business to consumer relationship, and it results in business growth via customer loyalty and expansion. Information technology can be used to improve customer service in so many ways. For example, businesses can use their website or email to inform their customers about great deals and discounts. Making the customer aware of these offers can drive their desire to buy. Good customer service can be used as an excellent tool for any small business to gain the competitive advantage.

Improves Business Competitive Advantage: Companies have used technology to gain the competitive advantage over their competitors. Business that innovate and adopt technology to remain efficient and improve processes, typically have high customer loyalty rates. As they can consistently meet and exceed expectations of their customers.

Summary We have now come to the end of our presentation .In this presentation we have been able to introduce ourselves to MIS . We have been able to define MIS and the various concepts in MIS . We have also tackled objectives, characteristics , requirements of MIS and the roles played by MIS in an organization .In addition we have also discussed the various types of information and biasness of information .The presentation has also outlined the various methods of data collection and we have concluded with the strategic advantages of information Technology in business organization s.

Business information


The last decade has shown rapid development in the information technology and its application. This has helped changed the way we look at the world as well as the way business is conducted. Both business and trade have gained under the wave of information technology with improvement in efficiency, productivity and bottom line. Productivity improvement has facilitated speedy and accurate production in large volumes. Indian financial sector has also benefited from advancement in information technology.Business and Information Technology

Current global and competitive business environment constantly asks for innovation, existing knowledge base is getting obsolete, continuously thriving for advancement in process improvement. The learning curve is always put to test, and every company is striving to remain ahead of the curve. Due to this shift in the way business is getting conducted has thrown out new reality of ever shortening product and service life cycle. More and more companies are coming out with customized products and finding ways to differentiate from competition.A recent survey conducted has highlighted that the change in the business environment can be summarized with following:

Globalization and opening up of markets has not only increased competition but also has allowed companies to operate in markets previously considered forbidden.

Inclusion of information technology as integral part of business environment has ensured that companies are able to process, store and retrieve the huge amount of data at ever dwindling costs.

Globalization has encouraged free movement of capital, goods and service across countries.

Characteristics of Business Environment

To understand business environment and drivers of change, it is first important to study its characteristics. They are as follows.

Business environments are complex in nature as well as dynamic because they are dependent upon factors like political, economic, legal, technological, social, etc. for sustenance.

Business environment affects companies in different industries in its own unique way. For example, importers may favour lower exchange rate while exporters may favour higher exchange rate.

With change in the business environment, some fundamental effects are short term in nature while some are felt over a period of time.

Business Process Outsourcing

Business Process Outsourcing involves contracting one or many front end (customer related) or back end (finance, HR, accounting, etc.) activities within a company to a third party service provider. The number of jobs within BPO industry has increased exponentially in last decade. BPO is one of the new faces in business environment.


Outsourcing has help companies reduce their overhead expenses, improve productivity, shorten innovation cycles, and encourage new market penetration and also improving customer experience. India has seen tremendous growth in BPO industry within function like customer care, finance/accounts, payroll, high end financial services, human-resource, etc.Types of Information Systems - Components and Classification of Information SystemsIntroduction

An information system is integrated and co-ordinate network of components, which combine together to convert data into information.Components of information systems

An information system is essentially made up of five components hardware, software, database, network and people. These five components integrate to perform input, process, output, feedback and control. Hardware consists of input/output device, processor, and operating system and media devices. Software consists of various programs and procedures. Database consists of data organized in the required structure. Network consists of hubs, communication media and network devices. People consist of device operators, network administrators and system specialist. Information processing consists of input; data process, data storage, output and control. During input stage data instructions are fed to the systems which during process stage are worked upon by software programs and other queries. During output stage, data is presented in structured format and reports.Classification of Information System

In any given organization information system can be classified based on the usage of the information. Therefore, an information system in an organization can be divided into operations support system and management support system.

Operations support system: In an organization, data input is done by the end user who is processed to generate information products i.e. reports, which are utilized by internal and or external users. Such a system is called operation support system. The purpose of the operation support system is to facilitate business transaction, control production, support internal as well as external communication and update organization central database. The operation support system is further divided into a transaction-processing system, processing control system and enterprise collaboration system.

Process Control System: In a manufacturing organization, certain decisions are made by a computer system without any manual intervention. In this type of system, critical information is fed to the system on a real-time basis thereby enabling process control. This kind of systems is referred as process control systems.

Enterprise Collaboration System: In recent times, there is more stress on team effort or collaboration across different functional teams. A system which enables collaborative effort by improving communication and sharing of data is referred to as an enterprise collaboration system.

Management Support System: Managers require precise information in a specific format to undertake an organizational decision. A system which facilitates an efficient


decision making process for managers is called management support system. Management support systems are essentially categorized as management information system, decision support system, and expert system and accounting information system. Management information system provides information to manager facilitating the routine decision-making process. Decision support system provides information to manager facilitating specific issue related solution.

Transaction Processing System (TPS): In manufacturing organization, there are several types of transaction across department. Typical organizational departments are Sales, Account, Finance, Plant, Engineering, Human Resource and Marketing. Across which following transaction may occur sales order, sales return, cash receipts, credit sales; credit slips, material accounting, inventory management, depreciation accounting, etc. These transactions can be categorized into batch transaction processing, single transaction processing and real time transaction processing.

Uses of Transaction Processing System1. Custom business applications, including functions to access data.2. Perform inter computer communications.3. Design and manage the user interface.

Types of Transaction Processing System1. Batch processing: Processes several transactions at the same time, with a time delay.

Real-time processing: Deals with one transaction at a time and does not have a time delay.2. Real-time processing: Real time systems attempt to guarantee an appropriate

response to a stimulus or request quickly enough to affect the conditions that caused the stimulus. Each transaction in real-time processing is unique; it is not part of a group of transactions.

3. Transaction processing: A Transaction Processing System (TPS) is a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise. Transaction processing systems also attempt to provide predictable response times to requests, although this is not as critical as for real-time systems. Rather than allowing the user to run arbitrary programs as time-sharing, transaction processing allows only predefined, structured transactions. Each transaction is usually short duration and the processing activity for each transaction is programmed in advance.

Features of Transaction Processing System1. Rapid Response: The response time of a transaction processing system is important

because a business cannot afford to have their customers waiting for long periods of time before making a transaction.

2. Reliability: A good Transaction Processing System must be very reliable because if it were to break down businesses could lose a huge portion of revenue because customers would not be able to purchase their products.

3. Inflexibility: The Transaction Processing System must work the same way for every transaction as long as the TPS is being used. The formality and structure should never change.


4. Controlled processing: The Transaction Processing System must be able to allow authorized employees to be able to access it at any time.

5. Storing and Retrieving Data: A TPS must be able to easily be accessed by authorized employees so that information in the TPS can be retrieved. The information that goes through a Transaction Processing System must never be deleted so that there will not be any confusion of what orders have gone through it. It is a good idea to have a backup hard drive so that older information can still be stored, but will not slow down the server which houses the Transaction Processing System.

Process of Transaction Processing System1. Processing of Inquiries: The system process the inquiries made using the database.2. Processing the Transaction: Depending on the outcome of the inquiries, the system

processes the activity such as buying or selling.3. Making Decisions: The system uses application to support systems for planning, analysis

and decision-making. Decisions are made on the transaction e.g. at what price to sell.4. Update master file: They system then stores the information relating the transaction.5. Produce Reports: The system winds up by producing a report on the transaction.

6. Processing in a batch: Transactions may be collected and processed as in batch processing. Transactions will be collected and later updated as a batch when it's convenient or economical to process them. Historically, this was the most common method as the information technology did not exist to allow real-time processing.

7. Processing in real-time: This is the immediate processing of data. It provides instant confirmation of a transaction. It may involve a large number of users who are simultaneously performing transactions which change data. Because of advances in technology i.e. increase in the speed of data transmission and larger bandwidth, real-time updating is possible.

DECISION SUPPORT SYSTEM (DSS)A decision support system (DSS) is an interactive software based system that helps managers in decision making by accessing large volumes of information generated from various related information systems involved in organizational business processes. It can also be defined as a computerized program used to support determinations, judgments, and courses of action in an organization or a business. A DSS sifts through and analyses massive amounts of data, compiling comprehensive information that can be used to solve problems and in decision-making. Uses of Decision Support System (DSS)

1. It helps in decision-making, decision makers compile useful information from raw data, documents, personal knowledge, business models to identify and solve problems and make decisions.

2. Useful in speedy computations.3. Improved communication and collaboration.4. Increased productivity of group members.5. Improved data management.


6. Quality support.7. Overcoming cognitive limits in processing and storing information.8. It is used to solve problems and make right decisions, thus

Characteristics of a Decision Support System1. It supports managers at various managerial levels ranging from top executive to line

managers.2. It supports for intelligence, design, choice and implementation.3. Helps present information to the customer in an easy-to-understand way. A DSS

system is beneficial because it can be programmed to generate many types of reports, all based on user specifications. For example, the DSS can generate information and output its information graphically, as in a bar chart that represents projected revenue or as a written report.

4. As technology continues to advance, data analysis is no longer limited to large, bulky mainframe computers. Since a DSS is essentially an application, it can be loaded on most computer systems, whether on desktops or laptops. Certain DSS applications are also available through mobile devices.

5. It supports for a variety of decision process and style.6. It supports for interdependent/ sequential decision making.7. They are adaptive over time.8. The flexibility of the DSS is extremely beneficial for users who travel frequently. This

gives them the opportunity to be well-informed at all times, providing the ability to make the best decisions for their company and customers on the go or even on the spot.

Advantages of Decision Support System1. Time saving: The time savings that have been documented from using

computerized decision support are often substantial. Researchers, however, have not always demonstrated that decision quality remained the same or actually improved.

2. Enhance effectiveness: A Decision quality and decision making effectiveness are however hard to document and measure. Most researches have examined soft measures like perceived decision quality rather than objective measures. Advocates of building data warehouses identify the possibility of more and better analysis that can improve decision making.

3. Improve interpersonal communication: DSS can improve communication and collaboration among decision makers. In appropriate circumstances, communications- driven and group DSS have had this impact. Model-driven DSS provides a means for sharing facts and assumptions. Data-driven DSS make one version of the truth about company operations available to managers and hence can encourage fact-based decision making. Improved data accessibility is often a major motivation for building a data-driven DSS.

4. Competitive advantage: Vendors frequently cite this advantage for business intelligence systems, performance management systems, and web-based DSS. Although it is possible to gain a competitive advantage from computerized decision


support, this is not a likely outcome. Vendors routinely sell the same product to competitors and even help with the installation. Organizations are most likely to gain this advantage from novel, high risk, enterprise-wide, inward facing decision support systems. Measuring this is and will continue to be difficult.5. Cost reduction: Some researches and especially case studies have documented DSS

cost saving from labour savings in making decisions and from lower infrastructure or technology costs. This is not always a goal of building DSS.

6. Increase decision maker satisfaction: DSS may reduce frustrations of decision makers, create perceptions that better information is being used and/or creates perceptions that the individual is a "better" decision maker. Satisfaction is a complex measure and researchers often measure satisfaction with the DSS rather than satisfaction with using a DSS in decision making

7. Promote learning: This is brought about by learning of new concepts and the development of a better factual understanding of the business and decision making environment as DSS serves as "de facto" training tools for new employees.

8. Increase organizational control: Data-driven DSS often make business transaction data available for performance monitoring and ad hoc querying. Such systems can enhance management understanding of business operations and managers perceive that this is useful. What is not always evident is the financial benefit from increasingly detailed data.

3.4 Disadvantages of Decision Support System1. Monetary cost: The decision support system requires investing in information system

to collect data from many sources and analyse them to support the decision making. Some analysis for Decision Support System needs the advance of data analysis, statistics, and econometrics and information system.Assumption of relevance: The danger is that once Decision Support System becomes common in organizations, that managers will use them inappropriately. There is limited evidence that this occurs.

2. Transfer of power: Building Decision Support System, especially knowledge-driven Decision Support System, may be perceived as transferring decision authority to a software program. This is more a concern with decision automation systems than with Decision Support System. We advocate building computerized decision support systems because we want to improve decision making while keeping a human decision maker in the "decision loop

3. Obscuring responsibility: The computer does not make a "bad" decision, people do. Unfortunately some people may deflect personal responsibility to a Decision Support System. Managers need to be continually reminded that the computerized decision support system is an intermediary between the people who built the system and those who use the system

4. False belief in objectivity: Managers who use Decision Support System may or may not be more objective in their decision making. Computer software can encourage more rational action, but managers can also use decision support technologies to rationalize their actions


5. Status reduction: Some managers argue using a Decision Support System will diminish their status and force them to do clerical work. This perceptual problem can be a disadvantage of implementing a Decision Support System. Managers and IS staff who advocate building and using computerized decision support need to deal with any status issues that may arise. This perception may or should be less common now that computer usage is common and accepted in organizations.

6. Overemphasize decision-making: Clearly the focus of those of us interested in computerized decision support is on decisions and decision making. Implementing Decision Support System may reinforce the rational perspective and overemphasize decision processes and decision making. It is important to educate managers about the broader context of decision making and the social, political and emotional factors that impact organizational success.

7. Information overload: Too much information is a major problem for people and many Decision Support System increase the information load. Although this can be a problem, Decision Support System can help managers organize and use information. Decision Support System can actually reduce and manage the information load of a user. Decision Support System developers need to try to measure the information load created by the system and Decision Support System users need to monitor their perceptions of how much information they are receiving. The increasing ubiquity of handheld, wireless computing devices may exacerbate this problem and disadvantage.

4. Programmed and Non-programmed Decisions

There are two types of decisions - programmed and non-programmed decisions.

(a) Programmed decisions are basically automated processes, general routine work, where −

These decisions have been taken several times.

These decisions follow some guidelines or rules.

For example, selecting a reorder level for inventories is a programmed decision.

(b) Non-programmed decisions occur in unusual and non-addressed situations, so −

It would be a new decision.

There will not be any rules to follow.

These decisions are made based on the available information.

These decisions are based on the manger's discretion, instinct, perception and judgment.

For example, investing in a new technology is a non-programmed decision. Decision support systems generally involve non-programmed decisions. Therefore, there will be no exact report, content, or format for these systems. Reports are generated on the fly.5. Attributes of Decision Support System

Adaptability and flexibility High level of Interactivity


Ease of use Efficiency and effectiveness Complete control by decision-makers Ease of development Extendibility Support for modelling and analysis Support for data access Standalone, integrated, and Web-based

6. Benefits of Decision Support System

Improves efficiency and speed of decision-making activities.

Increases the control, competitiveness and capability of futuristic decision-making of the organization.

Facilitates interpersonal communication.

Encourages learning or training.

Since it is mostly used in non-programmed decisions, it reveals new approaches and sets up new evidences for an unusual decision.

Helps automate managerial processes.Types of Decision Support System

1. Status Inquiry System: It helps in taking operational, management level or middle level management decisions, for example daily schedules of jobs to machines or machines to operators.

2. Data Analysis System: It needs comparative analysis and makes use of formula or an algorithm, for example cash flow analysis, inventory analysis etc.

3. Information Analysis System: In this system data is analysed and the information report is generated. For example, sales analysis, accounts receivable systems, market analysis etc.

4. Accounting System: It keeps track of accounting and finance related information, for example, final account, accounts receivables, accounts payables, etc. that keep track of the major aspects of the business.

5. Model Based System: Simulation models or optimization models used for decision-making are used infrequently and creates general guidelines for operation or management.

6. Communication-driven DSS: Most communications-driven DSSs are targeted at internal teams, including partners. Its purpose are to help conduct a meeting, or for users to collaborate. The most common technology used to deploy the DSS is a web or client server. Examples: chats and instant messaging software, online collaboration and net-meeting systems.


7. Data-driven DSS: Most data-driven DSSs are targeted at managers, staff and also product/service suppliers. It is used to query a database or data warehouse to seek specific answers for specific purposes. It is deployed via a main frame system, client/server link, or via the web. Examples: computer-based databases that have a query system to check (including the incorporation of data to add value to existing databases.

8. Document-driven DSS: Document-driven DSSs are more common, targeted at a broad base of user groups. The purpose of such a DSS is to search web pages and find documents on a specific set of keywords or search terms. The usual technology used to set up such DSSs is via the web or a client/server system. Examples:

9. Knowledge-driven DSS: Knowledge-driven DSSs or 'knowledgebase' are they are known, are a catch-all category covering a broad range of systems covering users within the organization setting it up, but may also include others interacting with the organization - for example, consumers of a business. It is essentially used to provide management advice or to choose products/services. The typical deployment technology used to set up such systems could be silent/server systems, the web, or software running on stand-alone PCs.

10. Model-driven DSS: Model-driven DSSs are complex systems that help analyses decisions or choose between different options. These are used by managers and staff members of a business, or people who interact with the organization, for a number of purposes depending on how the model is set up - scheduling, decision analyses etc. These DSSs can be deployed via software/hardware in stand-alone PCs, client/server systems, or the web.

Components of Decision Support SystemComponents of DSS

The following are the components of the Decision Support System −

Database Management System (DBMS): To solve a problem the necessary data may come from internal or external database. In an organization, internal data are generated by a system such as TPS and MIS. External data come from a variety of sources such as newspapers, online data services, databases (financial, marketing, human resources).

Model Management System: It stores and accesses models that managers use to make decisions. Such models are used for designing manufacturing facility, analysing the financial health of an organization, forecasting demand of a product or service, etc.

Support Tools: Support tools like online help; pulls down menus, user interfaces, graphical analysis, error correction mechanism, facilitates the user interactions with the system.

DSS Database: It contains data from various sources, including internal data from the organization, the data generated by different applications, and the external data mined


form the Internet, etc. The decision support systems database can be a small database or a standalone system or a huge data warehouse supporting the information needs of an organization. To avoid the interference of decision support system with the working of operational systems, the DSS database usually contains a copy of the production database.

DSS Software System: It consists of various mathematical and analytical models that are used to analyse the complex data, thereby producing the required information. A model predicts the output in the basis of different inputs or different conditions, or finds out the combination of conditions and input that is required to produce the desired output. A decision support system may compromise different models where each model performs a specific function. The selection of models that must be included in a decision support system family depends on user requirements and the purposes of DSS. Note that the DSS software contains the predefined models (or routines) using which new models can be built to support specific type of decisions. Some of the commonly used mathematical and statistical models are as follows:-

Statistical Models: They contain a wide range of statistical functions, such as mean, median, mode, deviations etc. These models are used to establish, relationships between the occurrences of an event and various factors related to that event. It can, for example, relate sale of product to differences in area, income, season, or other factors. In addition to statistical functions, they contain software that can analyse series of data to project future outcomes.

Sensitivity Analysis Models: These are used to provide answers to what-if situations occurring frequently in an organization. During the analysis, the value of one variable is changed repeatedly and resulting changes on other variables are observed. The sale of product, for example, is affected by different factors such as price, expenses on advertisements, number of sales staff, productions etc. Using a sensitivity model, price of the product can be changed (increased or decreased) repeatedly to ascertain the sensitivity of different factors and their effect on sales volume. Excel spreadsheets and Lotus 1-2-3 are often used for making such analysis.

Optimization Analysis Models: They are used to find optimum value for a target variable under given circumstances. They are widely used for making decisions related to optimum utilization of resources in an organization. During optimization analysis, the values for one or more variables are changed repeatedly keeping in mind the specific constraints, until the best values for target variable are found. They can, for example, determine the highest level of production that can be achieved by varying job assignments to workers, keeping in mind that some workers are skilled and their job assignment cannot be changed. Linear programming techniques and Solver tool in Microsoft excel are mostly used for making such analysis.

Forecasting Models: They use various forecasting tools and techniques, including the regression models, time series analysis, and market research methods etc., to make statements about the future or to predict something in advance. They provide


information that helps in analysing the business conditions and making future plans. These systems are widely used for forecasting sales.

Backward Analysis Sensitivity Models: Also known as goal seeking analysis, the technique followed in these models is just opposite to the technique applied in sensitivity analysis models. In place of changing the value of variable repeatedly to see how it affects other variables, goal seeking analysis sets a target value for a variable and then repeatedly changes other variables until the target value is achieved. To increase the production level by 40 percent using the backward sensitivity analysis, for example, first, the target value for the production level can be set and then the required changes to made in other factors, such as the amount of raw material, machinery and tools, number of production staff, etc., to achieve the target production level.

DSS User Interface: It is an interactive graphical interface which makes the interaction easier between the DSS and its users. It displays the results (output) of the analysis in various forms, such as text, table, charts or graphics. The user can select the appropriate option to view the output according to his requirement.

7. Classification of Decision Support System

There are several ways to classify DSS. Hoi Apple and Whinstone classifies DSS as follows

Text Oriented DSS: It contains textually represented information that could have a bearing on decision. It allows documents to be electronically created, revised and viewed as needed.

Database Oriented DSS: Database plays a major role here; it contains organized and highly structured data.

Spreadsheet Oriented DSS: It contains information in spread sheets that allows create, view, modifies procedural knowledge and also instructs the system to execute self-contained instructions. The most popular tool is Excel and Lotus 1-2-3.

Solver Oriented DSS: It is based on a solver, which is an algorithm or procedure written for performing certain calculations and particular program type.

Rules Oriented DSS: It follows certain procedures adopted as rules.

Rules Oriented DSS: Procedures are adopted in rules oriented DSS. Export system is the example.

Compound DSS: It is built by using two or more of the five structures explained above.

FRAMEWORK OF DSSDSS systems require a structured approach. Such a framework includes people, technology, and the development approach. The challenges as discussed above shape up our view towards the development of an advanced and abstract framework for DSSs. It must be able to address these challenges in an open and dynamic decision environment, particularly with emphasis on


uncertain knowledge. This framework can be characterized by different views: a pillar-based view, a layered view, a decision theoretical view and a process view.

Intelligence – Searching for conditions that call for decision Design – Developing and analysing possible alternative actions of solution Choice – Selecting a course of action among those Implementation – Adopting the selected course of action in decision situation.

DSS technology levels may include: 1. The actual application that will be used by the user. This is the part of the application

that allows the decision maker to make decisions in a particular problem area. The user can act upon that particular problem.

2. Generator contains Hardware/software environment that allows people to easily develop specific DSS applications. This level makes use of case tools or systems such as Crystal, Analytical and think.

3. Tools include lower level hardware/software. DSS generators including special languages, function libraries and linking modules

Challenges of Framework Decision Support System Human challenges The human aspect cover challenges related to the people involved in the implementation of the DSS, which are both users and decision makers. This concerns the personal feelings that the actors pose toward the introduction of a new system. The initiative of making a separate team for the implementation is supposed to act proactively and solve problems before they arise, but this however comes with a set of challenges. According to Sprague (1980) the initiative of adopting a DSS often comes from the user area, and not from the management level in the organization. The consultant is usually in contact with the head of finance in the organization but the person with technical knowledge is located further down the hierarchy (Sprague, 1980). Therefore, a major challenge is to collect enough good knowledge from the right employee in order to provide the consultant with proper information. Organizations that are unfamiliar with the concept of DSS are having a hard time getting the user of the DSS to utilizing the full extent of its functionality (Cachet, 2000).

Conceptual challenges The conceptual factor refers to problems related to approaching the DSS from angles that are not fit or doable based on organizational structure. These problems arise when the wrong development approaches has been chosen, where for instance the phases prior to implementation do not fit the organization. These could be planning and business analysis or problems related with internal leadership (Cachet, 2000).

SummaryA decision support system (DSS) is an information system application that assists decision-making. DSS tends to be used in planning, analysing alternatives, and trial and error search for solution. The elements of the decision support system include a database, model base & software. The main application areas of DSS are Production, finance and marketing. DSS can be differentiated from MIS on the basis of processing the information. MIS processes data to


convert it into information. DSS processes information to support the decision making process of a manager. Decision support systems (DSS) are interactive software-based systems intended to help managers in decision-making by accessing large volumes of information generated from various related information systems involved in organizational business processes, such as office automation system, transaction processing system, etc. DSS uses the summary information, exceptions, patterns, and trends using the analytical models. A decision support system helps in decision-making but does not necessarily give a decision itself. The decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.

Management Reporting System

A management reporting system is a database designed to report on the finances and operations of all levels of management in an organization. A company's management reporting system is commonly used by middle managers to generate regular reports comparing current and past financial performance to determine financial growth and to track how the middle managers themselves are performing. Upper management uses the data generated by the reporting system to compare the company's current financial position and its efficiency of operations against its predetermined goals for the company.

Process Control System

A process control system monitors a business's physical or industrial processes such as metal fabrication, petroleum processing or automobile assembly. The control system is constantly collecting data and is programmed to generate regular reports on system performance. A manager looks to the process control reports to tell how often, over the course of a set period of time, a particular event occurs during the production process, or how often over that period of time the company deviated from a repetitive production process. This information is key to tracking the overall efficiency of production and the safety of machinery and employees.

Sales and Marketing System

A sales and marketing system supports management in executing and tracking the effectiveness of the organization's sales and marketing functions. These include:

developing products forecasting sales compiling and tracking the advertising outlets and schedules managing distribution channels pricing, discounts and promotions implementing effective advertising and sales promotions

Reports also tell managers which items are selling and which aren't and how well each individual product in the company's inventory is selling at each retail location.


Inventory Control System

The inventory control system tracks everything having to do with inventory, including sales, spoilage, theft, and inventory on hand, which allows management to determine when individual items are getting low and need restocking, either in the company's warehouse or in any of its individual retail locations. It tracks movement of inventory into the warehouse, from warehouse to store, store sales and returns.

Accounting and Finance System:

An accounting and finance system tracks an organization's assets and investments and compiles all data for financial reporting required by law for such functions as payroll, federal, state, and local taxes and pension funds. This system provides all the reports necessary for periodic financial audits and annual reports if the organization or institution produces them. The accounting and finance system also facilitates the daily posting of routine transactions such as sales income, returns and bank deposits and transfers. All monthly financial statements, such as the balance sheet and the profit and loss statement are generated from this system. These statements are necessary for middle and upper managers to track current financial success against past performance and against predetermined goals for future growth.

Human Resources Information System

A human resources information management system supports the daily management and tracking of employees and recruiting. These systems track some financial elements of human resources that overlap the accounting and finance system such as payroll, benefits and retirement, but the human resource system is much more than that. It can streamline communication between employees and HR by providing an electronic hub for HR policies, legal compliance notices and mandatory training events. It can automate employee timekeeping, track work attendance, calculate available and used leave and let employees request vacation or sick leave, all without a manager's physical involvement. The recruiting function is also automated through the human resources management system through resume collection and analysis for identifying qualified potential hires.

Office Automation/Enterprise Collaboration System

An office automation, or enterprise collaboration, information management system enables managers to control the flow of information throughout the organization. Any electronic communication device or medium used in the organization by managers to communicate with other managers, with their employees, or for employees to communicate with each other falls under the umbrella of the office automation information system. These devices and media can include land-line phones, cell phones, Internet, Intranet, multimedia, voice mail and email, file sharing and video conferencing

Artificial Intelligence (AI): The 21st century is the true manifestation of artificial intelligence for the masses. AI is making every device smarter and quite often easier to use.


See AI, virtual assistant and robot.Block chain: The latest craze is the block chain, which is the architecture of Bitcoin and many other digital currencies, some of which are 100% scams. Touted as revolutionary as the Internet, time will tell whether this changes the architecture of every financial system in the world. See Bitcoin.Virtual and Augmented Reality: Headset-based virtual reality (VR) games are bringing gaming to a new dimension. Augmented reality (AR) is used for both fun and information. See virtual reality and augmented reality.Big Data: Big data means making sense out of the huge amount of data companies have amassed over the years and continue to generate. Finding patterns in that data that leads to streamlining inventory, manufacturing, sales and marketing is the latest analytical chore for large organizations.

Information Systems vs Information TechnologyIntroduction: It is often observed that term information system and information technology are used interchangeably. In a literal sense, information technology is a subset of information systems. Information systems consist of people, processes, machines and information technology. The great advancement in information systems is due to development in information technology and introduction of computers.Information System: An information system can be defined as set of coordinated network of components, which act together towards producing, distributing and or processing information. An important characteristic of computer-based information systems information is precision, which may not apply to other types. In any given organization information system can be classified based on the usage of the information. Therefore, information systems in business can be divided into operations support system and management support system.Information Technology: Everyday knowingly or unknowingly, everyone is utilizing information technology. It has grown rapidly and covers many areas of our day to day life like movies, mobile phones, the internet, etc. Information technology can be broadly defined as integration of computer with telecommunication equipment for storing, retrieving, manipulating and storage of data. According to Information Technology Association of America, information technology is defined as “the study, design, development, application, implementation, support or management of computer-based information systems.” Information technology greatly enhances the performance of economy; it provides edge in solving social issues as well as making information system affordable and user friendly. Information technology has brought big change in our daily life be it education, life at home, work place, communication and even in function of government.Comparison of Information System and Information Technology

Information system and information technology are similar in many ways but at the same time they are different. Following are some aspects about information system as well as information technology.


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Origin: Information systems have been in existence since pre-mechanical era in form of books, drawings, etc. However, the origin of information technology is mostly associated with invention of computers.

Development: Information systems have undergone great deal of evolution, i.e. from manual record keeping to the current cloud storage system. Similarly, information technology is seeing constant changes with evermore faster processor and constantly shrinking size of storage devices.

Business Application: Businesses have been using information systems for example in form of manual books of accounts to modern TALLY. The mode of communication has also gone under big change, for example, from a letter to email. Information technology has helped drive efficiency across organization with improved productivity and precision manufacturing.

Future of Information System and Information Technology

Information technology has shown exponential growth in the last decade, leading to more sophisticated information systems. Today’s information technology has tremendously improved quality of life. Modern medicine has benefited the most with better information system using the latest information technology. Information systems have been known to mankind in one form or the other as a resource for decision making. However, with the advent of information technology information systems have become sophisticated, and their usage proliferated across all walks of life. Information technology has helped managed large amount of data into useful and valuable information.What is Information Overload?

We are drowning in a sea of information. We are inundated with news, views, opinions, facts, and information every time we log in to the internet or turn on the TV. This constant barrage of information thrown at us nonstop in a 24/7 cycle makes us weary and lost in this never-ending repetitive world. Therefore, it is very important for professionals, students, and anyone who wants to focus and concentrate to learn the art of separating the wheat from the chaff and to lead productive lives that are meaningful and deep.For instance, knowing what is happening all over the world instantaneously and uninterruptedly would produce a fatigue in our minds and lead to exhaustion that can drain productivity and lead to loss of focus. One does not need to know all the news and happenings on Twitter, Facebook, Blogs, and on TV all the time. Unless one learns the habit of separating what one wants from what is available, most likely one would end up with what has been called information overload that denotes the extraordinary amount of information that we are being bombarded with constantly.The Consequences of Information Overload

Many companies have banned social media sites and even internet sites in an attempt to make the employees focus on the work. Despite these measures, many employees still find ways and means to get updated and to log in to other sites much like addicts who would do anything for a fix. While we are not against getting facts and information from diverse sources in a bid to stay ahead of the curve, what we are advocating is the trend of being


constantly on the move by surfing continuously which can have adverse side effects. It must be remembered that this trend when it goes out of control is as bad as getting hooked on to psychotropic substances and much like that it can lead to shorter attention spans, need for instant gratification, and a general sense of being frazzled.The truly productive employees are those who do not multitask nor spend endless hours watching the big game scores or news and event updates from around the world. Indeed, one of the reasons investment bankers and consultants are much sought after is that they have learnt to distinguish between short term and ephemeral trends and instead, detect longer-term trends and extrapolations from existing information that is meaningful and makes business sense.Present Shock and Generation Y and their Impact on Society and Businesses

The present generation Y has grown up not knowing what it is like to live without the internet or the TV. This means that their attention to detail is as short as the cryptic SMS (Short Messaging Service) or the Tweet and therefore, many occupational and lifestyle experts are worried that this aspect would lead us to a situation where we lose sight of the longer and deeper narrative and instead, settle for the fleeting moment that leads us to a “Present Shock” where the immediacy is more important than the longer term and where the present overwhelms us leading to a general sense of disorientation. This is not the way businesses and institutions have been built in earlier decades and these constantly changing and ever flux-filled times are proving to be a challenge for marketers, policymakers, and business leaders.Managing Information Overload

Apart from this the crux of the issue is that when we are inundated with information overload, there is a danger that we might lose the essential information and instead, pick up drivel and nonsense from the information sources which would lead to situations where businesses make the wrong decisions based on faulty information and wrong assumptions. This is the danger that information overload poses to us and it is better sooner than later that we as individuals learn to “switch off” when needed and to master the art of managing too much information and develop the skill of finding the right data instead of paying attention to meaningless data.Communication Systems and Groupware - Information System Concepts that Apply in All Functional Areas of BusinessIntroduction

Information systems can be defined as set of co-ordinated network of components, which act together towards producing, distributing and or processing information. Information systems in conjunction with information technology have various applications in today’s business environment.Communication System:

The process of transmitting information from one place to another is called communication. The transfer of communication needs to be done in an efficient manner without any interference. The transfer of communication has to be reliable and secure. Communication


system is a network of components and devices, which interact with each other to accomplish the task of transmission of information. Components of a communication system are input device, transmitter, channel, receiver and output device.

Functions of communication system components are as follows:Input Device: Function of input device is to convert a message to a form suitable to that particular communication system.Transmitter: Function of the transmitter is to convert the message suitable to that particular communication channel.Channel: It is the medium through which message gets transmitted, for example, air, cable, fibre-optic, etc.Receiver: Function of the receiver is to convert the signal into form suitable for the output device to consume.Output Device: Function of the output device is to convert the signal into form suitable to the end user. Communication systems are of two types, digital communication and analogy communication systems. Some of the communication systems currently in use are email, voice mail, smart phone, telecommuting, e-commerce, global positioning system, fax, instant messaging, video conferencing, the internet, web, etc.Groupware

Groupware is a technology which provides support for work in a group. This technology is referred to as collaborative technology. This technology facilitates communication, cooperation, coordination, problem-solving and in negotiations among internal as well as with the external work group. Compared to earlier telephony systems, modern information systems use computer networks such as the internet, email, etc. to achieve collaboration.Groupware is primarily divided into two sub systems synchronous and asynchronous. In synchronous groupware; interaction between users is at real time where as in asynchronous groupware interaction between users is at a different time. Groupware is essential of all modern organizations. Groupware has a definite advantage over standalone user.Some examples of groupware are as follows:Newsgroup and mailing list: This groupware looks at collaboration beyond on 1on1 communication. It enables faster flow of information across organization.Workflow systems: This groupware allows smooth flow of documents and information across organization. For example, monthly time card, once entered by the employee is routed to the employee’s manager for approval, after manager’s approval time card is sent to the payroll department for monthly salary processing.Hypertext: This groupware system is used to link several documents on the web.Group Calendars: This groupware is essential part of the project management system. It provides information of project status, scheduling conflicts, etc.Shared Whiteboards: This groupware allows user located at different location access to a common whiteboard. Whiteboards are commonly used in informal conversation and brain storming session. Information systems concepts play an important part in today’s work environment. Collaboration and innovation are the mantra of success for today’s organization.


Impact of Internet Revolution in Business

Worldwide influence of the internet is well-established and acknowledged. Penetration rate of the internet has been phenomenal; almost 1/3rd of Human population are accessing the internet. The way business is conducted in this digital age has changed due to so many people logged on to the internet.Advancement in communication and information technology has further strengthened the role of the internet in business. The internet is widely used in organization for marketing and promotion of products and services. The internet is used to deliver customer support, share information and provide training to employees. With the internet becoming a powerful tool for employees, the impact on business is undeniable.Internet and Porter’s Five Force Model

Porter’s five force model is a framework for industry analysis, business strategy development and study competition. The five forces of the model are the threat from upcoming and future competition, threat from existing substitute, bargaining power of consumers, negotiating power of suppliers and threat of competition. Internet has great Impact on all five force of the model:Threat of new entrants: The internet has considerably lowered entry barrier in setting up new enterprise. The setting up of a new company does not require much capital investment, for example, online retail sites, etc. Ever increasing competition has lowered the margins.Threat of new substitute: The Internet has reduced the product life cycle; shelf life of products and encouraged innovation is customer serving.Bargaining power of customers: The internet has made the customer well informed about products and available substitute. Companies have to be careful in presenting differentiation and pricing.Bargaining power of suppliers: Suppliers are well informed about happening in the industry thanks to the internet.Threat of competition: The internet has made transparency and honest important factor in success of the company. Customers tend to know more about the company. The internet has lowered the cost of searching new available products.Internet and the way business is conducted

The internet has changed the face of business. It has opened up new avenues of conducting business. Below are some impacts of the internet on business:Communication: communication technology combined with the internet has given a new dimension to connectivity and dispersion of information. Employees are in constant touch through email, instant messaging, office intranet, etc.Collaboration: The internet has facilitated collaboration among employees of organization. Geographical boundaries no longer hamper project work and sharing of information.Business Transaction: The internet has encouraged the culture of online business or e-commerce. In recent years many players have opened shops through e-commerce. Internet banking, payment gateways, etc. are part of normal supply chain transaction.


Work Flexibility: The internet has enabled workers to log in from remote location and home. It has helped on the move employees by remaining in touch with happenings of work.Web based application: The internet has facilitated the development of concept like cloud computing, which has enabled process and storing of data in large proportion. The internet has helped reduce infrastructure cost of the company. The internet thus has made a big impact in the way the business gets conducted in both positive as well as a negative way. The internet has made many business obsolete example post offices. Online security issues like hacking, identity theft, etc. are a constant threat to internet users.

Internal Technology Framework: 7S FrameworkIntroduction

In the modern age of cutting-edge technology and continuous innovation, product life cycle is ever shortening. There is constant pressure on companies to differentiate from competition and earn customer satisfaction. In such a business environment, it is essential that internal organization network is strong and efficient to deal with any kind of changes.The 7S framework introduced by McKinsey is one of the ways through which analysis can be done to determine the efficiency of organization in meeting strategic objective.The 7S model is utilized to study and suggest areas within company which needs improvement, examine the effects with change in strategy, internal alignment with every merger and acquisition.7S Framework

The 7S framework constitutes of 7 factors, which affect organizational effectiveness. These 7 factors are strategy, organizational structure, IT systems, shared values, employee skills, management style and staff. These 7 factors can be broadly categorized into Hard Elements-Strategy, Structure, Systems and Soft Elements-Shared Values, Skills, Style and Staff. Hard elements highlighted above are the ones which are under direct control of management. Soft elements are not in direct control of management and are driven by internal culture.The 7 factors as per the framework can be defined as follows:

1. Strategy: It is defined as an action plan working towards the organizational defined objective.

2. Structure: It is defined as design of organization-employees interaction to meet defined objective.

3. Systems: It is defined as information systems in which organization has invested to fulfil its defined objective.

4. Staff: It is defined as workers employed by the organization.5. Style: It is defined as the approach adopted by the leadership to interact with

employees, supplier and customers.6. Skills: It is defined as characteristics of employees associated with the organization.7. Shared Values: It is the central piece of the whole 7S framework. It is a concept

based on which organization has decided to achieve its objective.Usage of 7S Framework


The basis of the 7S framework is that for organization to meet its objective it is essential all the seven elements are in sync and mutually balancing. The model is used to identify which out of 7 factors need to be balanced as to align with change in organization.7S framework is helpful in identifying the pain points which are creating a hurdle in organization growth.Technology and 7S Framework

In digital age, technology and technology-driven information systems both are game changer as far as meeting objective for organization is concerned. Companies are moving towards automation, cloud computing, etc. This has led to technology as central nervous system of the organization. The 7S framework is applicable across all industries and companies. It is one of the premier models used to measure organizational effectiveness. In this challenging environment, strategy of organization is constantly evolving. In such an environment, it is essential organization to look back upon its seven elements to identify the source which is hampering the growth. Organization can use the 7S framework to identify its position with existing strategy.The Alignment of Technology and Corporate PlanningIntroduction

In the digital age, information technology plays an important role in the success of an organization. Technology provides edge in this globalized world. Companies are facing competition not only from local companies but from international companies as well. In such a scenario, it is important that company invest in technology which is aligned with overall strategy of the company. This calls for technology strategy formulation.Technology Strategy Formulation

Technology strategy formulation talks about alignment between technology strategy and the overall strategy of the organization. Here the role of the Chief Information Officer comes into prominence. The CIO should have short term as well as long term vision of technology advancement. CIO should bridge implication of technology advancement and organization strategy. A clear communication of technology impact on organization needs to reach executive leadership.This alignment between CIO and CEO revolves around issues like:

CIO roles and involvement in overall strategy formulation of organization. Financial resources available to make investment in technology. Earlier results of alignment between technology and organization strategy. External business conditions.

CIO faces challenge to provide technology value adds for organization in achieving its objective.Planning

Corporate planning plays an important role in alignment of technology with organization strategy. In a perfect scenario CIO and CEO will have a same planning horizon. However, it is observed that the CEO and CIO do not share same vision, from


planning to execution. This introduces the concept of planning lead time. In some organization, strategy execution does not match to technology planning horizon and execution. By the time technology strategy is executed, more advancement is observed in that system, thus competitive edge is lost. In the above scenario, companies become reactive rather than pro-active. Companies need to adjust with challenges posed by market leaders and trend setters. A strong CIO-CEO relationship ensure organization develop understanding of technological challenges and its impact on overall organization.Organizational Structure

Organization needs to ensure that their structure is agile and flexible as to accommodate changes in the technology. They should be efficient and effective enough to deal demands of the market change. Organization needs to develop and maintain technology systems, which are flexible and adaptive. There are three types of technology infrastructure available with companies’ ERP, data warehousing and knowledge management. All three dimensions ERP, Data Warehousing and Knowledge Management provide cutting edge to the organization.Organizational Systems

Organization invests in technology looking at its present needs; future requirements and its capability to provide a competitive edge. Systems can be classified into three categories depending upon technology timeline, new systems, matured systems and declining systems. New systems have latest technology and provide a competitive edge. As time progresses system and technology are adopted by more companies, thus losing competitive edge. Finally, systems and technology reach the obsolete stage where its usage has declined and is to be phased out. Executive leadership of organizations is responsible to manage new systems range as to enjoy competitive edge. However, this requires substantial investment and clear vision of future technology state. Therefore, organization has to walk a tight rope in investment in new technology and phasing out the obsolete.Information System for Business EffectivenessIntroduction

In this digital age with fierce competition, it is essential that managers within organization are completely aware and receptive to evolving changes. One the quickest evolving change is within information systems. This change in information systems is contributed to advances in computing and information technology. Applying a concept that information system is strictly under the purview of IT department can lead to adverse situation for the company. Therefore, it is essential for organization to recognize information systems contribution in business effectiveness.Systems and Innovation Opportunities

Development in information systems has brought opportunities but also threats. The onus is on the organization to identify opportunity and implement it. Organization needs to develop strategies, which can best utilize information systems to increase overall productivity. The most common practice with regards to information systems is automation. Though automation is helpful, innovation using information systems give the organization a competitive edge.


Systems and Customer Delight

Organizations are fully aware that proliferation of information systems has reduced product life cycle, reduced margin and brought in new products. In such scenario customer satisfaction alone will not suffice, organization needs to strive for customer delight. Information systems with data warehousing and analytics capability can help organization collect customer feedback and develop products, which exceed customer expectation. This customer delight will lead to a loyal customer base and brand ambassador.Systems and Organizational Productivity

Organizations require different types of information systems to mitigate distinctive process and requirements. Efficient business transaction systems make organization productive. Business transaction systems ensure that routine process are captured and acted upon effectively, for example, sales transaction, cash transaction, payroll, etc. Further, information systems are required for executive decision. Top leadership requires precise internal as well as external information to devise a strategy for organization. Decision support systems are designed to execute this exact function. Business transaction systems and executive decision support systems contribute to overall organizational productivity.System and Workers Productivity

Information systems have facilitated the increase in workers’ productivity. With introduction of email, video conferencing and shared white board collaboration across organization and departments have increased. This increased collaboration ensures smooth execution and implementation of various projects across geographies and locations.Information systems as a Value Add for Organization

Organization use information systems to achieve its various strategy as well as short-term and long-term goals. Development of information systems was to improve productivity and business effectiveness of organization. Success of information systems is highly dependent on the prevalent organization structure, management style and overall organization environment. With correct development, deployment and usage of information systems, organization can achieve lower costs, improved productivity, growth in top-line as well as the bottom-line and competitive advantage in the market. The readiness of workers into accepting the information systems is the key in realizing the full potential of them. Development and deployment of information systems have revolutionized the way business is conducted. It has contributed to business effectiveness and increased in productivity.Information Technology and Business IntelligenceIntroduction

After 1990s there was a major transformation in the commercial world. All the organizations across industry sectors have started using information technologies to maximize their productivity and profitability. Organizations started using technologies like mainframes, PCs, telecommunications and the internet along with the goods and services which they offered to the consumers. This process has become the backbone of evolution of information


technology. There has been manifold increase in investments in information technology sector.A driving force of productivity:

The US economy has seen impressive growth in Gross Domestic Product in the past few years and it is in a state of expansion. There has been increased demand for labour and low inflation. The lack of increase in price has also flummoxed many economists. The traditional theories suggest that whenever there is growth in economy and decline in unemployment rate, there is an increased probability of price pressures.“Productivity” means the process of utilizing the productive inputs to generate output. If all the input resources like men, machine/technology and materials are effectively used, then the costs can be better managed and the organizations can offer goods and services at moderate prices to the end users.By combining the state-of-art information technology with business strategies, organizations can achieve increased productivity. Business strategy addresses various like identifying the target markets, consumer preferences and managing the process by which goods and services are produced/delivered to the end user.Information technology makes it possible for the business leaders and decision makers to devise various business strategies based on economic theories. This is done with the flow of information to decision makers and employees throughout an organization. By implementing effective IT, the following operations can be easily analysed by the managers. They are:

Production Marketing/advertising Customer relationship management Distribution Finance Human Resource Telecomm and network processes

Organizations have already started experiencing the enhancement of business efficiency through the use of information technology. Significant breakthroughs have also happened in information technology like increase in speed and memory of computers. This in-turn has opened the doors for high-powered, state-of-art software applications. The latest developments in the telecommunications technology is a value addition to the internet. The combination of all these technology has created a vast information network and this has become information pulse of an organization.What is Business Intelligence?

Business Intelligence (BI) refers to the tools and technique which is used to convert raw data into meaningful and useful information. Using these techniques, large amount of unstructured data is handled to identify and create new business opportunities.The main aim of business intelligence is to make the user easily interpret the data. Based on the insights provided by tools of business intelligence, organizations gain competitive market advantage and long-term stability.


When these unstructured or raw data is transformed into value-added information, it increases the knowledge of business to individuals of all categories in an enterprise. These data are used by decision makers to implement various business strategies based on economic theory. Resources also can be easily managed to cater the needs of the ultimate consumer.Functions of Business Intelligence

Common functions of BI are:-

1. Reporting2. Online analytical processing3. Analytics4. Data mining5. Process mining6. Business performance management7. Predictive analysis; &8. Prescriptive analysis

Information Technology as Driving Force for InnovationIntroduction

Last two decades have seen great stride in information technology. The development in information technology has changed the way business is getting conducted. One of the striking points about information technology is innovation. Information technology has been a driving force for product, service and process innovation.Innovation in Last Decades

It has brought forward capabilities, which previously were only considered as fiction novel material. Information technology has supported miniaturization of electronic circuits’ making many products’ portable, for example, computers, phones, etc. Information technology has helped development in communication technology by making it affordable. Penetration rate of mobile phone is higher than ever before with greater coverage and with ever lowering cost.The concept of big data has become reality, with development of high memory storage devices.Function of Information Technology

Information technology is a network of devices, which are connected with each other, which process data into useful and meaningful information. Information technology, therefore, has six broad functions around which innovation is driven. The six broad functions are as follows:

Capture: it is defined as a process to obtain information in a form which can be further manipulated. This input of information may be through keyboard, mouse, picture, etc.

Transmit: it is defined as a process through which captured information is sent from one system to another. This system could be within same geographical boundary or otherwise. For example, Radio, TV, email, telephone, fax, etc.


Store: it is defined as a process through which captured information is kept in safe and secure manner and, which can be further accessed when required. For example, hard disk, USB, etc.

Retrieval: it is defined as a process through which stored information can be called upon when required. For example, RAM, hard disk, USB, etc.

Manipulation: it is defined as a process through which captured and stored information can be transformed. This transformation could be the arrangement of data, calculation, presentation, etc., For example, computer software.

Display: it is defined as a process of projecting the information. For example, computer screen, printer, etc.

Innovation and Information Technology

The last two decades of development and evolution in information technology is around six functions. The innovation driven by information technology has been the by-product of the six functions. Some of the significant development which has been achieved is as follows:

Portability: advances in information technology have made portability of all electronic gadgets possible.

Speed: computing is now done at speed at which earlier generations of super computer were working.

Miniaturization: another innovation is in form of hand-held computing devices as well as an information system, like GPS, Smartphone, and IPad etc.

Connectivity: information technology has transformed communication capability. Entertainment: proliferation of multimedia and digital information has been

tremendous. User Interface: advancement in information technology has changed way users

interact with computing devices. The advent of touch screen has made computing intuitive and interactive.

INFORMATION MANAGEMENT STRATEGIES

IntroductionAn information management strategy describes your agency planned approach to information management to meet current and future organizational needs and regulatory requirements.Types of Information Systems

Operation support system Information system support


Executive Information

Decision Management Enterprise Processing of Control

Transaction

Management Support System Transaction Processing System (TPS)

Information System

Components of Information Management StrategiesData Integration

Data integration has become key to enterprise. Organizations continually recognize how critical it is to share data across business functions, and that suggests a continued need for increasing reliability, performance, and access speed for data integration, the data integration has the following aspects;

Data accessibility –. One key aspect of data integration is accessibility, and the information management framework going forward must provide connectors to that wide variety of data sources, including file-based, tree-structured data sets, relational databases, and even streamed data sources.

Data transformation, exchange and delivery – There must be a capability to transform the data from its original format into one that is suited to the target, with a means of verifying that the data sets are appropriately packaged and delivered.

Data replication and change data capture – Data replication techniques enable rapid bulk transfers of large data sets which can synchronize the process by trickle-feeding changes using a method known as change data capture that monitors system logs and triggers updates to the target systems as changes happen in the source.

Data VirtualizationData virtualization is an approach to data management that allows an application to retrieve and manipulate data without requiring technical details about the data such as how it’s formatted at source. It is capable of the following;

Federation – Is a group of computing or network providers agreeing upon standards of operation in a collective fashion.

Caching – This is reducing data latency, thereby increasing system performance. Consistency – It combines both federation and virtualization to bring validation,

cleansing and unification. Event Stream ProcessingIt is a technique that real-time monitoring of patterns and sequences of events flowing through streams of information hence enabling organization to rapidly respond to emerging opportunities.Data Quality ManagementThese are practices that help organizations improve the precision of identifying data flaws and errors as well as simplify the analysis and remediation of root causes of data flaws. Data GovernanceInformation management environment would be complete without the techniques for validating data rules and compliance with data policies hence this is supported with tools for managing the data policy life cycle.Roles of Information Management Strategies


Executive Information

Decision Management Enterprise Processing of Control

Transaction

Competitive Advantage of Information Technology (IT)It is a unique information technology advantage a company has over other companies who are offering same services. This has led to;

Dramatic reduction in the cost of obtaining, processing, transmitting information which has changed the way we do business.

Reduction of errors and complaints from clients due improved services and quality products.

Creates competitive advantage by giving companies new ways to outperform their rivals

Changes the industry structure hence altering rules of competition Spawns whole new business, often from within a company’s existing operations. Customer relation management.

System Development Life Cycle (SDLC)In general, a system development life cycle SDLC methodology follows these following steps:

Analysis: The existing system is evaluated. Deficiencies are identified. This can be done by interviewing users of the system and consulting with support personnel.

Plan and requirements: The new system requirements are defined. In particular, the deficiencies in the existing system must be addressed with specific proposals for improvement. Other factors defined include needed features, functions and capabilities.

Design: The proposed system is designed. Plans are laid out concerning the physical construction, hardware, operating systems, programming, communications and security issues.

Development: The new system is developed. The new components and programs must be obtained and installed. Users of the system must be trained in its use.

Testing: All aspects of performance must be tested. If necessary, adjustments must be made at this stage. Tests performed by quality assurance (QA) teams may include systems integration and system testing.

Deployment: The system is incorporated in a production environment. This can be done in various ways. The new system can be phased in, according to application or location, and the old system gradually replaced. In some cases, it may be more cost-effective to shut down the old system and implement the new system all at once.

Upkeep and maintenance: This step involves changing and updating the system once it is in place. Hardware or software may need to be upgraded, replaced or changed in some way to better fit the needs of the end-users continuously. Users of the system should be kept up-to-date concerning the latest modifications and procedures.

Other steps which may appear include project initiation, functional specifications, detailed specifications, evaluation, end-of-life and other steps that can be created by splitting previous steps apart further.

Advantages of SDLC Having a clear view of an entire project, workers involved, estimated costs and

timelines.


Gives project managers a projected base cost of the project. Goals and standards are clearly defined. Developers can move back a step if something does not go as expected.

Disadvantages of SDLC Due to assumptions made at the beginning of a project, if an unexpected circumstance

complicates the development of a system, then it may stockpile into more complications down the road. As an example, if newly installed hardware does not work correctly, then it may increase the time a system is in development, increasing the cost.

Some methods are not flexible. It can be complicated to estimate the overall cost at the beginning of a project. Testing at the end of development may slow down some development teams.

Operations To efficiently process business transactions control industrial process, support

enterprise communication and update corporate database. Deals with the support of business operations known as business operation support

system (OSS) produces variety of information products for external and internal use. Various operation support systems (OSS) are;

Transaction Processing System (TPS) Records and process data resulting from business transactions. Processes sales purchase inventory and other organization database. The database

provide them provide resources that can be processed and used by Decision Support System (DSS) and EIS.

TPs process transaction into two (2) ways; Batch processing.

Data is accumulated over a period of time and processed periodically. Real time processing.

Data is immediately processed after every transaction. Processing of Control System (PCS)

Decision about a physical production process is automatically made by complete through routine decisions that control operational process.

Enterprise Collaborate System (ECS) Uses a variety of information technology to help the personnel to work together.

PrototypingIs an early sample, model, release of product built to test a concept or process.Benefits

The software designer and implementer can get valuable feedback from the users early kin the project

The client and the contractor can compare if the software made matches the software specification according to which the software program is built


It allows the software engineer some insight into the accuracy of initial project estimates and whether the deadlines and milestones proposed can be successfully met

Steps in prototyping: decide on the goal of the project and its major components or categories choose one or two features to begin with (usually in the main category or home page) create a preliminary design on paper discuss the design with stakeholders with the aim of improving it repeat steps 3 & 4 to generate a simple design that all can agree on implement the design on the computer repeat the consultation / refinement process until the features are ‘good enough’ to

continue Add another feature and repeat the prototyping process of consultation and refinement

there are several important things to watch for during the process.Types of PrototypingA chart illustrates typical purposes for each kind of prototype.

Type of Prototype Typical Purpose General Characteristics When to Use

Concept Prototype Analyze system approaches

High-level, overall vision

Concept Definition Stage

Feasibility Prototype Determine feasibility of various solutions

Proof of concept for specific issues

Concept Definition Stage

Horizontal Prototype Clarify scope and requirements

Demonstrates outer layer of human interface only, such as windows, menus, and screens

Function Definition Stage

Vertical Prototype Refine database design, test key components early

Demonstrates a working, though incomplete, system for key functions

Later portion of Function Definition Stage

Functional Storyboarding

Determine useable sequences for presenting information

Demonstrates the typical order in which information is presented

Function Definition Stage

Reference

https://www.pcmag.com/encyclopedia/term/49886/prototyping

INFORMATION TECHNOLOGY INFRASTRUCTURE


https://www.pcmag.com/encyclopedia/term/49886/prototyping

Introduction

Various organizations operate on a platform in which information technology infrastructure is set to facilitate the ease with which objectives are to be met. In this presentation, we shall familiarize ourselves with the components of Information technology infrastructure, its importance and corresponding benefits to organizations.

Definition

IT Infrastructure is defined broadly as a set of information that are the foundation of an IT service; typically physical components (computer and networking hardware and facilities), but also various software and network components rely on IT infrastructure, and the ITIL framework was developed as a set of best practices with regard to IT infrastructure.

Enterprise IT infrastructure typically refers to components required for the existence, operation and management of an enterprise IT environment. It can be internal to an organization and deployed within owned facilities, or deployed within a cloud computing system, or a combination thereof. An IT infrastructure consists of a set of physical devices and software applications that are required to operate the entire enterprise.

All of the hardware, software, networks, facilities, etc., that are required to develop, test, deliver, monitor, control or support IT services. The term IT infrastructure includes all of the Information Technology but not the associated People, Processes and documentation. A mainframe is the central data repository, or hub, in a corporation's data processing centre, linked to users through less powerful devices such as workstations or terminals. The presence of a mainframe often implies a centralized form of computing, as opposed to a distributed form of computing.

Importance of information technology infrastructure

Enhances efficiency of the company: Infrastructure of data centre provides an insight into the assets of IT Company and realigns the physical infrastructure to improve efficiency of the company to the business needs.

Assessment of organization’s application: Application Infrastructure helps in the assessment of organization’s applications, mapping them to various underlying applications like databases, designing applications infrastructure of vendors.

Maximizing investments: Server Infrastructure management helps to maximize the investments made in the IT by standardizing and controlling the costs of a server. The servers are monitored 24/7, maintained by deleting the temporary files and updating the software versions to utilize the optimum benefits of servers. The overall concept of IT infrastructure management has been rapidly adapting in companies to meet the existing demands of the customers and the market. Business needs of the customers are met and in turn the


organization is adapting to give a user rich experience, enhancing and re-evaluating their resources and remodelling them to increase the substantial value of the organization.

Risk management: The Company’s assets are handled carefully to the changes in the technology, which in turn helps to overcome the risk and decreases the complexity of the problems. All the areas of infrastructure management are interlinked which mainly strive to adopt practices which are best in industry and increase the scalability of the enterprise and improve the focus of the business.

Reducing production cost: IT infrastructure management plays a key role in reducing the costs of a company, ensuring the quality of the service is maintained to a greater extent overcoming the risk. The operational efficiency of the organization will also rise to a new level, increasing the company’s revenue. Underlying principles of IT infrastructure and overall focus is to optimize the output, keeping the data safe and secure, bridging a communication between internal and external networks, meeting the demands of the customers and reducing the operating cost of a company.

This IT infrastructure forms the prominent backbone of the economy of a company, hence it is of utmost importance to monitor and manage them and overcome the challenges of the traditional system. It also helps to maintain the compliance with the government policies and regulations and in turn reducing the operating costs. Infrastructure management is also outsourced and monitored remotely (RIM) and provides all the necessary features to ensure its security. The cost benefits are optimized, efficient, scalable, service and security are improved. The major business challenges faced by an organization are subsided when IT infrastructure management plays a pivotal role in shaping the future, by providing improved processes, policies which are adhered to the standards, collecting efficient data, managing the networks , IT assets and the IT staff.

Enhances proper planning and increase revenue handling: Infrastructure management at several levels increases the company’s strategic planning and business revenues. There is an extreme need and importance for the infrastructure management in an organization which helps them to achieve higher targets.

Components of information technology infrastructure


Enterprise resource planning (ERP)

Is the integrated management of main business processes, often in real-time and mediated by software and technology? ERP is usually referred to as a category of business management software typically a suite of integrated applications that an organization can use to collect, store, manage, and interpret data from these many business activities.

ERP provides an integrated and continuously updated view of core business processes using common databases maintained by a database management system. ERP systems track business resources, cash, raw materials, production capacity and the status of business commitments: orders, purchase orders, and payroll. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data. ERP facilitates information flow between all business functions and manages connections to outside stakeholder.Importance of Enterprise Resource Planning

ERP creates a more agile company that adapts better to change. It also makes a company more flexible and less rigidly structured so organization components operate more cohesively, enhancing the business internally and externally.

ERP can improve data security in a closed environment. A common control system, such as the kind offered by ERP systems, allows organizations the ability to more easily ensure key company data is not compromised. This changes, however, with a more open environment, requiring further scrutiny of ERP security features and internal company policies regarding security

ERP provides increased opportunities for collaborations. Data takes many forms in the modern enterprise, including documents, files, forms, audio and video, and emails.


Often, each data medium has its own mechanism for allowing collaboration. ERP provides a collaborative platform that lets employees spend more time collaborating on content rather than mastering the learning curve of communicating in various formats across distributed systems.]

ERP offers many benefits such as standardization of common processes, one integrated system, standardized reporting, improved key performance indicators (KPI), and access to common data. One of the key benefits of ERP; the concept of integrated system, is often misinterpreted by the business. ERP is a centralized system that provides tight integration with all major enterprise functions be it HR, planning, procurement, sales, customer relations, finance or analytics, as well to other connected application functions. In that sense ERP could be described as "Centralized Integrated Enterprise System (CIES)

Advantages

The most fundamental advantage of ERP is that the integration of a myriad of business processes saves time and expense. Management can make decisions faster and with fewer errors. Data becomes visible across the organization. Tasks that benefit from this integration include

Sales forecasting, which allows inventory optimization? Chronological history of every transaction through relevant data compilation in every

area of operation. Order tracking, from acceptance through fulfilment Revenue tracking, from invoice through cash receipt Matching purchase orders (what was ordered), inventory receipts (what arrived), and

costing (what the vendor invoiced)

ERP systems centralize business data, which:

Eliminates the need to synchronize changes between multiple systems—consolidation of finance, marketing, sales, human resource, and manufacturing applications

Brings legitimacy and transparency to each bit of statistical data Facilitates standard product naming/coding Provides a comprehensive enterprise view (no "islands of information"), making real–

time information available to management anywhere, anytime to make proper decisions

Protects sensitive data by consolidating multiple security systems into a single structure

DisadvantagesCustomization can be problematic. Compared to the best-of-breed approach, ERP can be seen as meeting an organization’s lowest common denominator needs, forcing the organization to find workarounds to meet unique demands.


Re-engineering business processes to fit the ERP system may damage competitiveness or divert focus from other critical activities.

ERP can cost more than less integrated or less comprehensive solutions. High ERP switching costs can increase the ERP vendor's negotiating power, which

can increase support, maintenance, and upgrade expenses. Overcoming resistance to sharing sensitive information between departments can

divert management attention. Integration of truly independent businesses can create unnecessary dependencies. Extensive training requirements take resources from daily operations. Harmonization of ERP systems can be a mammoth task (especially for big

companies) and requires a lot of time, planning, and money. Critical challenges include disbanding the project team very quickly after

implementation, interface issues, lack of proper testing, time zone limitations, stress, offshoring, people's resistance to change, a short hyper-care period, and data cleansing

Types of Enterprise Resource PlanningEnterprise resource planning, or ERP, is a way of integrating organizational data and processes into a single system. ERP systems will generally have a hardware component, a software component and a process documentation component. ERP systems usually integrate with several aspects of an organization. For example, an ERP system may cover manufacturing, quality control, manufacturing engineering, parts ordering, accounts payable or human resources. The type of system best suited for your business will depend on the size of your business and the functions that will support your business requirements.

SAP R/3 and B1:

SAP is probably the best known supplier of ERP software. SAP offers two solutions. The first is the R/3 suite and the second is the B1 suite, sometimes called "business one." R/3 is an integrated software system that can support everything from very small companies to very large corporations. R/3 is customizable to meet your specific business needs. R/3 uses a client/server architecture that runs on a variety of platforms, including UNIX, Windows Server and OS/400. It can be implemented using a number of database packages, including Oracle, SQL Server, or DB2. B1 is targeted more at small and medium-sized businesses and offers pre-built modules for finance, warehousing, customer relationship management (CRM), e-commerce, purchasing and reporting.

LN/Baan

Baan ERP software was originally created by The Baan Corporation in The Netherlands. It was purchased by Infor Global Solutions in 2003. Baan ERP software is designed for manufacturing industries working on complex products with complex supply chains that work on different methodologies. Baan is especially suited for large made-to-order and engineering-to-order companies. Baan is used by companies like The Boeing Company, Ferrari, Solectron, Fiat, Flextronics, Evenfall, Navistar and British Aerospace & Engineering


Systems. Baan is highly customizable and supports flow chart based process and procedure documentation.

Microsoft Dynamics NAV and AX 2009

Microsoft offers two ERP software packages. Microsoft NAV is targeted toward small and medium-sized businesses and offers modules for analysis, e-commerce, CRM, supply chain management, manufacturing and finance. Microsoft AX 2009 is designed for medium to large organizations and has functions that are useful for companies doing business in multiple countries. It is focused on improving individual productivity and is best suited for service organizations, manufacturing companies, wholesalers and retail-oriented companies. AX 2009 is more customizable than NAV.

JD Edwards Enterprise One

Enterprise One from JD Edwards is an Oracle-based ERP system. Enterprise One is currently owned by the Oracle Corporation. Enterprise One offers pre-designed modules that focus on standards-based process engineering and deep understanding of different business processes and requirements. Available modules include, among others, analytics, capital asset management, CRM, finance management, human capital management, manufacturing, ordering systems and project management. Higher level modules can be added for specific industries like real estate, construction, and food and beverage production.

Oracle E-Business Suite Financials and PeopleSoft Enterprise

Oracle offers two other ERP products. The first is E-Business Suite Financials. The other is PeopleSoft. E-Business Suite Financials is an easy to use package targeted to the financial services industry. It supports distributed organizations and offers modules for financial and operational information, dynamic planning, and budgeting, forecasting and multidimensional profit analysis. PeopleSoft is a highly customizable suite that can support complex business requirements. It offers customizable modules for a wide range of business types and styles and runs on a wide range of database systems and hardware architectures

Characteristics

ERP systems typically include the following characteristics:

An integrated system Operates in (or near) real time A common database that supports all the applications A consistent look and feel across modules Installation of the system with elaborate application/data integration by the

Information Technology (IT) department, provided the implementation is not done in small steps

Deployment options include: on-premises, cloud hosted


BCP AND MANAGEMENT OF DECISION MAKING

Business Continuity Planning (BCP)

Business Continuity Planning (BCP) or Business Continuity and Resiliency Planning (BCRP) creates a guideline for continuing business operations under adverse conditions such as a natural calamity, an interruption in regular business processes, loss or damage to critical infrastructure, or a crime done against the business. It is defined as a plan that "identifies an organization's exposure to internal and external threats and synthesizes hard and soft assets to provide effective prevention and recovery for the organization, while maintaining competitive advantage and value system integrity." Understandably, risk management and disaster management are major components in business continuity planning.

Objectives of BCP Following are the objectives of BCP:

• Reducing the possibility of any interruption in regular business processes using proper risk management.

• Minimizing the impact of interruption, if any. • Teaching the staff their roles and responsibilities in such a situation to safeguard their

own security and other interests. • Handling any potential failure in supply chain system, to maintain the natural flow of

business. • Protecting the business from failure and negative publicity. • Protecting customers and maintaining customer relationships. • Protecting the prevalent and prospective market and competitive advantage of the

business. • Protecting profits, revenue and goodwill.

Setting a recovery plan following a disruption to normal operating conditions. Fulfilling legislative and regulatory requirements.

Traditionally a business continuity plan would just protect the data center. With the advent of technologies, the scope of a BCP includes all distributed operations, personnel, networks, power and eventually all aspects of the IT environment.

Phases of BCP The business continuity planning process involves recovery, continuation, and preservation of the entire business operation, not just its technology component. It should include contingency plans to protect all resources of the organization, e.g., human resource, financial resource and IT infrastructure, against any mishap. It has the following phases:

• Project management & initiation • Business Impact Analysis (BIA) • Recovery strategies


• Plan design & development • Testing, maintenance, awareness, training

Project Management and Initiation This phase has the following sub-phases:

• Establish need (risk analysis) • Get management support • Establish team (functional, technical, BCC - Business Continuity Coordinator) • Create work plan (scope, goals, methods, timeline) • Initial report to management • Obtain management approval to proceed

Business Impact Analysis This phase is used to obtain formal agreement with senior management for each time-critical business resource. This phase has the following sub-phases:

• Deciding maximum tolerable downtime, also known as MAO (Maximum Allowable Outage)

• Quantifying loss due to business outage (financial, extra cost of recovery, embarrassment), without estimating the probability of kinds of incidents, it only quantifies the consequences

• Choosing information gathering methods (surveys, interviews, software tools) • Selecting interviewees • Customizing questionnaire • Analyzing information • Identifying time-critical business functions • Assigning MTDs • Ranking critical business functions by MTDs

Reporting recovery options Obtaining management approval

Recovery Phase This phase involves creating recovery strategies are based on MTDs, predefined and management-approved. These strategies should address recovery of:

• Business operations • Facilities & supplies • Users (workers and end-users) • Network • Data center (technical) • Data (off-site backups of data and applications)


BCP Development Phase This phase involves creating detailed recovery plan that includes:

• Business & service recovery plans • Maintenance plan • Awareness & training plan • Testing plan

The Sample Plan is divided into the following phases:

• Initial disaster response • Resume critical business ops • Resume non-critical business ops • Restoration (return to primary site) • Interacting with external groups (customers, media, emergency responders)

Final Phase The final phase is a continuously evolving process containing testing maintenance, and training. The testing process generally follows procedures like structured walk-through, creating checklist, simulation, parallel and full interruptions. Maintenance involves:

• Fixing problems found in testing • Implementing change management • Auditing and addressing audit findings • Annual review of plan

Training is an ongoing process and it should be made a part of the corporate standards and the corporate culture.

Decision-Making

Concept of Decision-Making Decision-making is a cognitive process that results in the selection of a course of action among several alternative scenarios.

Decision-making is a daily activity for any human being. There is no exception about that. When it comes to business organizations, decision-making is a habit and a process as well.

Effective and successful decisions result in profits, while unsuccessful ones cause losses. Therefore, corporate decision-making is the most critical process in any organization.

In a decision-making process, we choose one course of action from a few possible alternatives. In the process of decision-making, we may use many tools, techniques, and perceptions.


In addition, we may make our own private decisions or may prefer a collective decision.

Usually, decision-making is hard. Majority of corporate decisions involve some level of dissatisfaction or conflict with another party.

Let's have a look at the decision-making process in detail.

Decision-Making Process Following are the important steps of the decision-making process. Each step may be supported by different tools and techniques.

Step 1: Identification of the Purpose of the Decision

In this step, the problem is thoroughly analyzed. There are a couple of questions one should ask when it comes to identifying the purpose of the decision.

• What exactly is the problem? • Why the problem should be solved? • Who are the affected parties of the problem? • Does the problem have a deadline or a specific time-line?

Step 2: Information Gathering

A problem of an organization will have many stakeholders. In addition, there can be dozens of factors involved and affected by the problem.


In the process of solving the problem, you will have to gather as much as information related to the factors and stakeholders involved in the problem. For the process of information gathering, tools such as 'Check Sheets' can be effectively used.

Step 3: Principles for Judging the Alternatives

In this step, the baseline criteria for judging the alternatives should be set up. When it comes to defining the criteria, organizational goals as well as the corporate culture should be taken into consideration.

As an example, profit is one of the main concerns in every decision making process. Companies usually do not make decisions that reduce profits, unless it is an exceptional case. Likewise, baseline principles should be identified related to the problem in hand.

Step 4: Brainstorm and Analyze the Choices

For this step, brainstorming to list down all the ideas is the best option. Before the idea generation step, it is vital to understand the causes of the problem and prioritization of causes.

For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-andEffect diagram helps you to identify all possible causes of the problem and Pareto chart helps you to prioritize and identify the causes with the highest effect.

Then, you can move on generating all possible solutions (alternatives) for the problem in hand.

Step 5: Evaluation of Alternatives

Use your judgment principles and decision-making criteria to evaluate each alternative. In this step, experience and effectiveness of the judgment principles come into play. You need to compare each alternative for their positives and negatives.

Step 6: Select the Best Alternative

Once you go through from Step 1 to Step 5, this step is easy. In addition, the selection of the best alternative is an informed decision since you have already followed a methodology to derive and select the best alternative.

Step 7: Execute the decision:

Convert your decision into a plan or a sequence of activities. Execute your plan by yourself or with the help of subordinates.

Step 8: Evaluate the Results:


Evaluate the outcome of your decision. See whether there is anything you should learn and then correct in future decision making. This is one of the best practices that will improve your decision-making skills.

Process and Modeling in Decision-Making There are two basic models in decision-making:

• Rational models • Normative model

The rational models are based on cognitive judgments and help in selecting the most logical and sensible alternative. Examples of such models include: decision matrix analysis, Pugh matrix, SWOT analysis, Pareto analysis and decision trees, selection matrix, etc.

A rational decision making model takes the following steps:

• Identifying the problem, • Identifying the important criteria for the process and the result, • Considering all possible solutions, • Calculating the consequences of all solutions and comparing the probability of

satisfying the criteria, • Selecting the best option.

The normative model of decision-making considers constraints that may arise in making decisions, such as time, complexity, uncertainty, and inadequacy of resources.

According to this model, decision-making is characterized by:

• Limited information processing - A person can manage only a limited amount of information.

• Judgmental heuristics - A person may use shortcuts to simplify the decision making process.

• Satisficing - A person may choose a solution that is just "good enough".

Dynamic Decision-Making Dynamic decision-making (DDM) is synergetic decision-making involving interdependent systems, in an environment that changes over time either due to the previous actions of the decision-maker or due to events that are outside of the control of the decision-maker.

These decision-makings are more complex and real-time.

Dynamic decision-making involves observing how people used their experience to control the system's dynamics and noting down the best decisions taken thereon.


Sensitivity Analysis Sensitivity analysis is a technique used for distributing the uncertainty in the output of a mathematical model or a system to different sources of uncertainty in its inputs.

From business decision perspective, the sensitivity analysis helps an analyst to identify cost drivers as well as other quantities to make an informed decision. If a particular quantity has no bearing on a decision or prediction, then the conditions relating to quantity could be eliminated, thus simplifying the decision making process.

Sensitivity analysis also helps in some other situations, like:

• Resource optimization • Future data collections • Identifying critical assumptions • To optimize the tolerance of manufactured parts

Static and Dynamic Models

Static models:

• Show the value of various attributes in a balanced system. • Work best in static systems. • Do not take into consideration the time-based variances. • Do not work well in real-time systems however, it may work in a dynamic system

being in equilibrium Involve less data. • Are easy to analyze. • Produce faster results.

Dynamic models:

• Consider the change in data values over time. • Consider effect of system behavior over time. • Re-calculate equations as time changes. • Can be applied only in dynamic systems.

Simulation Techniques Simulation is a technique that imitates the operation of a real-world process or system over time. Simulation techniques can be used to assist management decision making, where analytical methods are either not available or cannot be applied.

Some of the typical business problem areas where simulation techniques are used are:

• Inventory control • Queuing problem • Production planning


Operations Research Techniques Operational Research (OR) includes a wide range of problem-solving techniques involving various advanced analytical models and methods applied. It helps in efficient and improved decision-making.

It encompasses techniques such as simulation, mathematical optimization, queuing theory, stochastic-process models, econometric methods, data envelopment analysis, neural networks, expert systems, decision analysis, and the analytic hierarchy process.

OR techniques describe a system by constructing its mathematical models.

Heuristic Programming Heuristic programming refers to a branch of artificial intelligence. It consists of programs that are self-learning in nature.

However, these programs are not optimal in nature, as they are experience-based techniques for problem solving.

Most basic heuristic programs would be based on pure 'trial-error' methods.

Heuristics take a 'guess' approach to problem solving, yielding a 'good enough' answer, rather than finding a 'best possible' solution.

Group Decision-Making In group decision-making, various individuals in a group take part in collaborative decisionmaking.

Group Decision Support System (GDSS) is a decision support system that provides support in decision making by a group of people. It facilitates the free flow and exchange of ideas and information among the group members. Decisions are made with a higher degree of consensus and agreement resulting in a dramatically higher likelihood of implementation.

Following are the available types of computer based GDSSs:

• Decision Network: This type helps the participants to communicate with each other through a network or through a central database. Application software may use commonly shared models to provide support.

• Decision Room: Participants are located at one place, i.e. the decision room. The purpose of this is to enhance participant's interactions and decision-making within a fixed period of time using a facilitator.

• Teleconferencing: Groups are composed of members or sub groups that are geographically dispersed; teleconferencing provides interactive connection between two or more decision rooms. This interaction will involve transmission of computerized and audio visual information.


FILE ORGANISATION & DATABASE MANAGEMENT

INTRODUCTION TO FILE CONCEPTSComputer files

A file is a collection of related data or information that is normally maintained on a secondary storage device. The purpose of a file is to keep data in a convenient location where they can be located and retrieved as needed. The term computer file suggests organized retention on the computer that facilitates rapid, convenient storage and retrieval. As defined by their functions, two general types of files are used in computer information systems: master files and transaction files.

Master files

Master files contain information to be retained over a relatively long period. Information in master files is updated continuously to represent the status of the business. An example is an account receivable file. This file is maintained by companies that sell to customers on credit. Each account record will contain such information as account number, customer name and address, credit limit amount, the current balance owed, and fields indicating the dates and amounts of purchases during the current reporting period. This file is updated each time the customer makes a purchase. When a new purchase is made, a new account balance is computed and compared with the credit limit. If the new balance exceeds the credit limit, an exception report may be issued and the order may be held up pending management approval.

Transaction files

Transaction files contain records reflecting current business activities. Records in transaction files are used to update master files.

To continue with the illustration, records containing data on customer orders are entered into transaction files. These transaction files are then processed to update the master files. This is known as posting transaction data to the master file. For each customer transaction record, the corresponding master record is accessed and updated to reflect the last transaction and the new balance. At this point, the master file is said to be current.

File Definition and Data RecordsA file consists of records while records contain Group Item or Data Item. Data Item is the smallest component in a file.An employee file will contain records of employee. Each employee record may contain fields such as Employee No., Name, Address, Date of Birth, etc.Another important feature is the primary key. A primary key is a field that uniquely identifies one record from another.Records may be in fixed or variable length. Fixed Length Record


- It is easy to handle because they have the same size and format.e.g. Employee ID, IC Number, Postal District. Variable Length Record- The number and size of these items are not fixed.e.g. Name, Product Description, Address- Variable length records are complex as they contain pointers to items.

Types of Data Files Master files

Contains information that is more or less permanent in nature. Records must be kept current. File is used for referencing, updating and amending purpose. E.g. Employee, Customer.

Transaction/update files Contains information related to the activities of the business. The information is temporary and is required to update the master file. E.g. Order Received, Payments received.

Reference files Files that contain reference data. E.g. Price or Conversion Table or a set of descriptions. Changes may be made when price or conversion rate changes.

Archive/historical files Information is not required that often. It is stored off-line and may be kept at remote location. If enquiry is made on a particular record, it may take sometime as it is not kept

on the online system.Accessing Files

Files can be accessed

Sequentially - start at first record and read one record after another until end of file or desired record is found

o known as “sequential access”o only possible access for serial storage devices

Directly - read desired record directlyo known as “random access” or “direct access”

File Organization

Files need to be properly arranged and organised to facilitate easy access and retrieval of the information. Types of file organisation (physical method of storage) include:

Serial Sequential Indexed-Sequential


RandomAll file organisation types apply to direct access storage media (disk, drum etc.)

A file on a serial storage media (e.g. tape) can only be organised serially

Serial Organization

Each record is placed in turn in the next available storage space A serial file must be accessed sequentially implying

o good use of spaceo high access time

Usually used for temporary files, e.g. transaction files, work files, spool filesNote: The method of accessing the data on the file is different to its organisation

o E.g. sequential access of a randomly organised fileo E.g. direct access of a sequential file

Sequential organization

Records are organised in ascending sequence according to a certain key Sequential files are accessed sequentially, one record after the next Suitable

o for master files in a batch processing environmento where a large percentage of records (high hit-rate) are to be accessed

Not suitable for online access requiring a fast response as file needs to be accessed sequentially

Indexed Sequential

Most commonly used methods of file organisation File is organised sequentially and contains an index Used on direct access devices Used in applications that require sequential processing of large numbers of records but

occasional direct access of individual records Increases processing overheads with maintenance of the indices

Random organization

Records are stored in a specific location determined by a randomising algorithm o function (key) = record location (address)

Records can be accessed directly without regard to physical location Used to provide fast access to any individual record

e.g. airline reservations, online banking


Problems of traditional file based approach

Each function in an organisation develops specific applications in isolation from other divisions, each application using their own data files. This leads to the following problems:

Data redundancy o duplicate data in multiple data files

Redundancy leads to inconsistencies o in data representation e.g. refer to the same person as client or customero values of data items across multiple files

Data isolation — multiple files and formats Program-data dependence

o tight relationship between data files and specific programs used to maintain files

Lack of flexibilityo Need to write a new program to carry out each new task

Lack of data sharing and availability Integrity problems

o Integrity constraints (e.g. account balance > 0) become part of program codeo Hard to add new constraints or change existing ones

Concurrent access by multiple users difficulto Concurrent accessed needed for performanceo Uncontrolled concurrent accesses can lead to inconsistencieso E.g. two people reading a balance and updating it at the same time

Security problems

DATA BASE MANAGEMENT SYSTEM

IntroductionWe have introduced this topic with definition of terms where necessary and the scope that it covers. This lecture is meant to introduce you to Data base management system, its types, the advantages and disadvantages of data base management systems as well as we have attached pictorials for better understanding. Data Base Management SystemA database management system (DBMS) is a group of programs that manipulate a database and serve as an interface between a database, its user and other application programs. A DBMS is designed to define, create, manipulate, retrieve and manage data in a database. A DBMS generally manipulates the data, the data format, field names, record structure and file structure. It also defines rules to validate and manipulate this data. A DBMS is a software program which uses query languages such as SQL, MySQL, SQL Server, Oracle, dBase and FoxPro to interact with the database to frame programs for data query and data maintenance.


A database management system receives instruction from a database administrator (DBA) and instructs the database to execute those commands, which include tasks like load, retrieve, sort, or modify existing data in the database, independent of the manner in which the data is stored. On the other hand, storage mechanism and data format may be modified without modifying the DBMS program itself. There are four main structural types of database management systems:

Types of Database Management Systems

Over the years, to satisfy the needs of data storage, processing and retrieval, database models of varying degrees of sophistication were devised. Large enterprises needed to build many independent data files containing related and even overlapping data, often in quite different formats to fulfil different purposes. Data-processing activities frequently required the linking of data from several files necessitating designing data structures and database management systems that supported the automatic linkage of files. Four database models and their corresponding management programs were developed to support the linkage of records of these types. The following database models and their management systems are in common use:

1. Hierarchical databases.2. Network databases.3. Relational databases.4. Object-oriented databases

Hierarchical Database Management SystemA hierarchical database is a one in which the data elements have a one-to-many relationship (1: N). The schema for a hierarchy has a single root. This kind of database model uses a tree-like structure which links a number of dissimilar elements to one primary record – the "owner" or "parent". Each record in a hierarchical database contains information about a group of parent child relationships. The data are stored as records, each of which is a collection of fields containing only one value. The records are connected to each other through links. The structure implies that a record can have a data element repeated. Hierarchical models make the most sense where the primary focus of information gathering is on a concrete hierarchy such as a list of business departments, assets or people that will all be associated with specific higher-level primary data elements. They are very simple and fast. In the hierarchical database model the user must have some prior information about the database. Hierarchical databases were popular in early database design, in the era of mainframe computers.The idea behind hierarchical database models is useful for a certain type of data storage, but it is not extremely versatile. They are confined to some very specific uses. For example, where each individual person in a company may report to a given department, the department can be used as a parent record and the individual employees will represent secondary records, each of which links back to that one parent record in a hierarchical structure.

Advantage:


Hierarchical databases relate well to anything that works through a one-to-many relationship. They can be accessed and updated rapidly because in this model, the data structure is like that of a tree, and the relationships between records are defined in advance. These databases allow easy addition and deletion of records. These databases are good for hierarchies such as employees in an organization or an inventory of plant specimen in a museum. Data at the top of the hierarchy is accessed with great speed.

Disadvantage:

This type of database structure permits each child a relationship with only one parent, and relationships or linkages between children are not permitted, even if they make sense from a logical standpoint. This limitation is circumvented by a repetition of data, which adds to the size of the database. Searching for specific data requires the DBMS to run through the entire data from top to bottom until the required information is found, making queries very slow. The lower the required data in the hierarchy, the longer it takes to retrieve it. Adding a new field or record requires the entire database to be redefined.Example of a hierarchical database model

Network Database Management System:

A network database model is one in which multiple member records or files are linked to multiple owner files and vice versa. The network database model can be viewed as a net-like form where a single element can point to multiple data elements and can it be pointed to by multiple data elements.

The network database model allows each record to have multiple parents as well as multiple child records, which can be visualized as a web-like structure of networked records. By contrast, in the hierarchical model, a data member can only have many child records, but only a single parent record.

Actually, the network model is quite similar to the hierarchical model – the hierarchical model being a subset of the network model. However, instead of using a single-parent tree hierarchy, the network model uses set theory to provide a tree-like hierarchy with the exception that child tables are allowed to have more than one parent. It supports many-to-many relationships and can be visualized as a cobweb or interconnected network of records


Advantages: A Network database is conceptually simple and easy to design. The data access is easier and more flexible as compared to a hierarchical model. It does not allow a member to exist without a parent. The main advantage of a network database is that it can handle more complex data because of its many-to-many relationship. It allows for a more natural modelling of relationships between records or entities, as opposed to the hierarchical model. Because of its flexibility, it is easier to navigate and search for information in a network database. This kind of database structure isolates the management programs from the complex physical data storage details.

Disadvantages:

The main disadvantage is that all the records in the database need to be maintained using pointers, making the whole database structure very complex. The insertion, deletion and updating operations of any record require an adjustment of a large number of pointers. Network databases are difficult to use by first time users. Structural changes to the database are very difficult to implement. Difficulties are encountered while making alterations to the database because entering new data may necessitate altering the entire database

. Example

Relational Databases Management System:

A relational database is one in which data is stored in the form of tables, using rows and columns. This arrangement makes it easy to locate and access specific data within the database. It is “relational” because the data within each table are related to each other. Tables may also be related to other tables. In relational databases, tables or files containing data are called relations (tuples), and are defined by rows (or records), and columns (or attributes) referred to as fields. Each table has a key field that mainly identifies each record (row), and on the basis of which records in different tables are related (or linked).


This kind of a relational structure makes it possible to run queries that need to retrieve data from multiple tables simultaneously. An RDBMS may also provide a visual representation of the data. For example, it may display data in a spreadsheet-like table, allowing you to view and even edit individual data elements in the table. Some RDMBS programs allow you to create forms that can streamline entering, editing, and deleting data. Most well-known database management systems fall into the RDBMS category. Examples include Oracle Database, MySQL, Microsoft SQL Server, and IBM DB2. Some of these programs support non-relational databases, but they are primarily used for relational database management.

Currently, the relational database approach is the most popular. The older hierarchical data management systems are being replaced by relational database management. Relational DBMS software is available for large mainframe systems as well as workstations and personal computers. The need for more powerful and flexible data models to support scientific and business applications has led to extended relational data models in which table entries are no longer simple values but can be programs, text, unstructured data in the form of large binary, or in any other format which the end user needs.

Advantages:

Any data organized as tables consisting of rows and columns is much easier to understand. Data can be stored in separate tables or files containing logically related attributes, so that huge amounts of data are segmented, making management and retrieval easier and faster. Different tables from which information has to be linked and extracted can be easily managed. Security and authorization control can also be implemented more easily by moving sensitive data in a given database to a separate relation with its own authorization controls. Data independence is easily achieved in a relational database than in the more complicated tree or network structure. Redundancy and replication of data can be minimized. RDBMS offers the possibility of responding to queries by means of a language based on relational algebra and relational calculus. It offers logical database independence i.e. data can be viewed in different ways by the different users. Multiple users can access the database simultaneously which is not possible in other kinds of databases. RDBMS also offers better backup and recovery options.

Disadvantages:

A major constraint, and therefore disadvantage of RDBMS is its reliance on machine performance. If the number of tables between which relationships are to be established is large, then the performance in responding to the SQL queries is affected. The required hardware is complex and software expensive, increasing the overall cost of implementing


RDBMS.

Object-Oriented Database Management System:A recent development

in database technology is the incorporation of the object concept that has become significant in programming languages. In object-oriented databases, all data are objects. Objects may be linked to each other by an “is-part-of” relationship to represent larger, composite objects. For example, the data describing a truck may be stored as a composite of a particular engine, chassis, gear box, steering system, etc. Classes of objects may form a hierarchy in which individual objects may inherit properties from objects higher up in the hierarchy. For example, objects of the class “motorized vehicle” will all have an engine (a truck, a car or an airplane). Likewise, engines are also data objects, and the engine attribute of a particular vehicle will be a link to a specific engine object. Multimedia databases, in which voice, music, and video are stored along with the traditional textual information, provide a justification for viewing data as objects. Such object oriented databases are becoming increasingly important, since their structure is most flexible and adaptable. The same is true of databases of pictures, images, photographs or maps. The future of database technology is generally perceived to be an integration of the relational and object-oriented database models.

Advantages:

Object oriented databases combine the object oriented principle with the database management principle to give a hybrid system that is more powerful than the conventional relational database management system. The principles of object orientation like consistency, isolation, durability, and atomicity are supported along with the principles of database systems. In OODBMS, working with objects in the programming language is similar to


Example of an object oriented database model

working with objects in the database. Each object is the database is identified by an object identifier called the OID which is generated by the system. The OODBMS is more powerful than the RDBMS if you are used to object oriented programming. Another advantage of using the OODBMS is that when your application requests for an object, it is sent by the database to the memory, and you work with the in-memory object. Any update or deletion is done to the in-memory object and these changes can later be saved to the database. This helps to avoid the frequent access to the database while updating, deleting, etc.

Disadvantages:

A significant disadvantage of OODBMS is that it lacks a theoretical foundation which makes it comparable to pre-relational systems. The use of OODBMS is relatively limited because we do not yet have the level of experience that we have with traditional systems. There is reluctance to the acceptance of this technology because OODBMSs are still very much geared towards the programmer, rather than the naïve end-user. While the OODBMS is limited to a small niche market, this problem will continue to exist. The increased functionality provided by the OODBMS makes the system more complex than the traditional DBMSs. Currently, OODBMSs do not provide adequate security mechanisms – the database manager cannot grant access rights on individual objects or classes.

Example of an object oriented database model

Characteristics of Database Management System

Provides security and removes redundancy Self-describing nature of a database system Insulation between programs and data abstraction Support of multiple views of the data Sharing of data and multiuser transaction processing DBMS allows entities and relations among them to form tables. It follows the ACID concept (Atomicity, Consistency, Isolation, and Durability). DBMS supports multi-user environment that allows users to access and manipulate

data in parallel.


Application and Uses of Database Management System (DBMS)

Railway Reservation System: Database is required to keep record of ticket booking, train’s departure and arrival status. Also if trains get late then people get to know it through database update.

Library Management System: There are thousands of books in the library so it is very difficult to keep record of all the books in a copy or register. So DBMS used to maintain all the information relate to book issue dates, name of the book, author and availability of the book.

Banking: We make thousands of transactions through banks daily and we can do this without going to the bank. So how banking has become so easy that by sitting at home we can send or get money through banks. That is all possible just because of DBMS that manages all the bank transactions.

Universities and colleges: Examinations are done online today and universities and colleges maintain all these records through DBMS. Student’s registrations details, results, courses and grades all the information is stored in database.


1. Credit card transactions: For purchase of credit cards and all the other transactions are made possible only by DBMS. A credit card holder knows the importance of their information that all are secured through DBMS.

2. Social Media Sites: We all are on social media websites to share our views and connect with our friends. Daily millions of users signed up for these social media accounts like Facebook, twitter, Pinterest and Google plus. But how all the information of users are stored and how we become able to connect to other people, yes this all because DBMS.

3. Telecommunications: Any telecommunication company cannot even think about their business without DBMS. DBMS is must for these companies to store the call details and monthly post-paid bills.

4. Finance: Those days have gone far when information related to money was stored in registers and files. Today the time has totally changed because there are lots of thing to do with finance like storing sales, holding information and finance statement management etc.

5. Military: Military keeps records of millions of soldiers and it has millions of files that should be keeping secured and safe. As DBMS provides a big security assurance to the military information so it is widely used in militaries. One can easily search for all the information about anyone within seconds with the help of DBMS.

6. Online Shopping: Online shopping has become a big trend of these days. No one wants to go to shops and waste his time. Everyone wants to shop from home. So all these products are added and sold only with the help of DBMS. Purchase information, invoice bills and payment, all of these are done with the help of DBMS.

7. Human Resource Management: Big firms have many workers working under them. Human resource management department keeps records of each employee’s salary, tax and work through DBMS.

8. Manufacturing: Manufacturing companies make products and sales them on the daily basis. To keep records of all the details about the products like quantity, bills, purchase, supply chain management, DBMS is used.

9. Airline Reservation system: Same as railway reservation system, airline also needs DBMS to keep records of flights arrival, departure and delay status.

General advantage of Data base management system

1. Improved data sharing:

The DBMS helps create an environment in which end users have better access to more and better-managed data.

Such access makes it possible for end users to respond quickly to changes in their environment.

2. Improved data security:


The more users access the data, the greater the risks of data security breaches. Corporations invest considerable amounts of time, effort, and money to ensure that corporate data are used properly.

A DBMS provides a framework for better enforcement of data privacy and security policies.

3. Better data integration:

Wider access to well-managed data promotes an integrated view of the organization’s operations and a clearer view of the big picture.

It becomes much easier to see how actions in one segment of the company affect other segments.

4. Minimized data inconsistency:

Data inconsistency exists when different versions of the same data appear in different places.

For example, data inconsistency exists when a company’s sales department stores a sales representative’s name as “Bill Brown” and the company’s personnel department stores that same person’s name as “William G. Brown,” or when the company’s regional sales office shows the price of a product as $45.95 and its national sales office shows the same product’s price as $43.95.

The probability of data inconsistency is greatly reduced in a properly designed database.

5. Improved data access:

The DBMS makes it possible to produce quick answers to ad hoc queries. From a database perspective, a query is a specific request issued to the DBMS for data

manipulation—for example, to read or update the data. Simply put, a query is a question, and an ad hoc query is a spur-of-the-moment question.

The DBMS sends back an answer (called the query result set) to the application. For example, end users

6. Improved decision making:

Better-managed data and improved data access make it possible to generate better-quality information, on which better decisions are based.

The quality of the information generated depends on the quality of the underlying data.

Data quality is a comprehensive approach to promoting the accuracy, validity, and timeliness of the data. While the DBMS does not guarantee data quality, it provides a framework to facilitate data quality initiatives.

Increased end-user productivity


The availability of data, combined with the tools that transform data into usable information, empowers end users to make quick, informed decisions that can make the difference between success and failure in the global economy.

General disadvantage of Data base Management system

1. Increased costs:

Database systems require sophisticated hardware and software and highly skilled personnel.

The cost of maintaining the hardware, software, and personnel required to operate and manage a database system can be substantial. Training, licensing, and regulation compliance costs are often overlooked when database systems are implemented.

2. Management complexity:

Database systems interface with many different technologies and have a significant impact on a company’s resources and culture.

The changes introduced by the adoption of a database system must be properly managed to ensure that they help advance the company’s objectives. Given the fact that database systems hold crucial company data that are accessed from multiple sources, security issues must be assessed constantly.

3. Maintaining currency:

To maximize the efficiency of the database system, you must keep your system current.

Therefore, you must perform frequent updates and apply the latest patches and security measures to all components.

Because database technology advances rapidly, personnel training costs tend to be significant. Vendor dependence.

Given the heavy investment in technology and personnel training, companies might be reluctant to change database vendors.

4. Frequent upgrade/replacement cycles:

DBMS vendors frequently upgrade their products by adding new functionality. Such new features often come bundled in new upgrade versions of the software.

Some of these versions require hardware upgrades. Not only do the upgrades themselves cost money, but it also costs money to train database users and administrators to properly use and manage the new features.

Database Security, Integrity and ControlSecurity is the protection of data from accidental or deliberate threats, which might cause unauthorized modification, disclosure or destruction of data and the protection of the


information system from the degradation or non-availability of service. Data integrity in the context of security is when data are the same as in source documents and have not been accidentally or intentionally altered, destroyed or disclosed. Security in database systems is important because:

Large volumes of data are concentrated into files that are physically very small The processing capabilities of a computer are extensive, and enormous quantities of

data are processed without human intervention. Easy to lose data in a database from equipment malfunction, corrupt files, loss during

copying of files and data files are susceptible to theft, floods etc. Unauthorized people can gain access to data files and read classified data on files Information on a computer file can be changed without leaving any physical trace of

change Database systems are critical in competitive advantage to an organization

Some of the controls that can be put in place include:

1) Administrative controls – controls by non-computer based measures. They include:a. Personnel controls e.g. selection of personnel and division of responsibilitiesb. Secure positioning of equipmentc. Physical access controlsd. Building controlse. Contingency plans

2) PC controlsa. Keyboard lockb. Passwordc. Locking disksd. Traininge. Virus scanningf. Policies and procedures on software copying

3) Database controls – a number of controls have been embedded into DBMS, these include:

a. Authorization – granting of privileges and ownership, authenticationb. Provision of different views for different categories of usersc. Backup and recovery proceduresd. Checkpoints – the point of synchronization between database and transaction log

files. All buffers are force written to storage.e. Integrity checks e.g. relationships, lookup tables, validationsf. Encryption – coding of data by special algorithm that renders them unreadable

without decryptiong. Journaling – maintaining log files of all changes madeh. Database repair

4) Development controls – when a database is being developed, there should be controls over the design, development and testing e.g.


a. Testingb. Formal technical reviewc. Control over changesd. Controls over file conversion

5) Document standards – standards are required for documentation such as:a. Requirement specificationb. Program specificationc. Operations manuald. User manual

6) Legal issuesa. Escrow agreements – legal contracts concerning softwareb. Maintenance agreementsc. Copyrightsd. Licensese. Privacy

7) Other controls includinga. Hardware controls such as device interlocks which prevent input or output of data

from being interrupted or terminated, once begunb. Data communication controls e.g. error detection and correction.

Emerging Trends in Information Technology

21st century has been defined by application of and advancement in information technology. Information technology has become an integral part of our daily life. According to Information Technology Association of America, information technology is defined as “the study, design, development, application, implementation, support or management of computer-based information systems.” Information technology has served as a big change agent in different aspect of business and society. It has proven game changer in resolving economic and social issues. The recent explosion of information technology has seen few but significant emerging trends, for example, mobile platform for doing business, cloud computing, technology to handle a large volume of data, etc. These fresh technologies and platforms are offering numerous opportunities for companies to drive strategic business advantage and stay ahead of the competition. Companies need to work on new plans as to maintain flexibility and deliver customer satisfying products and services. Advancement and application of information technology are ever changing. Some of the trends in the information technology are as follows:

1. Cloud Computing

One of the most talked about concept in information technology is the cloud computing. Clouding computing is defined as utilization of computing services, i.e. software as well as hardware as a service over a network. Typically, this network is the internet. Cloud computing offers 3 types of broad services mainly Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS). Some of the benefit of cloud computing is as follows:


Cloud computing reduces IT infrastructure cost of the company. Cloud computing promotes the concept of virtualization, which enables server

and storage device to be utilized across organization. Cloud computing makes maintenance of software and hardware easier as

installation is not required on each end user’s computer.Some issues concerning cloud computing are privacy, compliance, security, legal, abuse, IT governance, etc.

2. Mobile Application

Another emerging trend within information technology is mobile applications (software application on Smart phone, tablet, etc.). Mobile application or mobile app has become a success since its introduction. They are designed to run on Smartphone, tablets and other mobile devices. They are available as a download from various mobile operating systems like Apple, Blackberry, Nokia, etc. Some of the mobile app are available free where as some involve download cost. The revenue collected is shared between app distributor and app developer.

3. User Interfaces

User interface has undergone a revolution since introduction of touch screen. The touch screen capability has revolutionized way end users interact with application. Touch screen enables the user to directly interact with what is displayed and also removes any intermediate hand-held device like the mouse. Touch screen capability is utilized in smart phones, tablet, information kiosks and other information appliances.

4. Analytics

The field of analytics has grown many folds in recent years. Analytics is a process which helps in discovering the informational patterns with data. The field of analytics is a combination of statistics, computer programming and operations research. The field of analytics has shown growth in the field of data analytics, predictive analytics and social analytics. Data an analytics is tool used to support decision-making process. It converts raw data into meaningful information. Predictive analytics is tool used to predict future events based on current and historical information. Social media analytics is tool used by companies to understand and accommodate customer needs. The every changing field of information technology has seen great advancement and changes in the last decade. And from the emerging trend, it can be concluded that its influence on business is ever growing, and it will help companies to serve customers better.

INTERNET OF THINGS (IOTs): is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction.Types of IOTsCloud computing for its: in this type, you basically push and process your sensory data over the cloud where you have an ingestion that stores data in a very large storage and where it can


https://en.wikipedia.org/wiki/Identifiers

be retrieved for processing where need be. Some challenges that I faced with cloud computing in Iota are:

-Use of proprietary platforms and enterprises being uncomfortable with having their data on --Google, Microsoft, Amazon’s properties

-Latency and network disruption issues

-Increased storage costs, data security and persistence

-Often big data frameworks aren’t enough to create a large ingestion module that can facilitate data needs

Fog Computing for IotaWith fog computing, we became a bit more powerful. Rather than sending your data all the way to cloud and waiting for the server to process and respond, we now use a local processing unit or a computer.

It isn’t very straightforward, there are many things you would need to know and understand. Building software, or what we do in Iota, is more straightforward and open. Also, when you place networking as a barrier it slows you down.

You need a very large team and multiple providers for such implementations. Often you will face vendor lock-in as well.

Edge Computing for IotaIoT is about capturing micro-interactions and responding as fast as you can. Edge computing brings us closest to the data source and allows us to apply machine learning at the sensor’s region. If you got caught up with the edge vs fog computing discussions, you should understand that edge computing is all about intelligence at the sensor nodes, whereas fog computing is still about local area networks that can provide computing power for data heavy operations.Industry giants like Microsoft and Amazon have release Azure IoT Edge and AWS Green Gas for facilitating machine intelligence on IoT gateways and sensor nodes that have decent computing power. While these are great solutions that makes your work very easy, it significantly alters the meaning of edge computing that we practitioners know and use. The real edge computing will happen over such neuromemristic devices that can be preloaded with a machine learning algorithm in them to serve a single purpose and responsibility

MIST Computing for IoTWe saw that we could do the following to facilitate data processing and intelligence for IoT:

Cloud based computer models Fog based computer models Edge computing models


https://www.simform.com/iot-edge-fog-computing/

Here’s a computing type that complements fog and edge computing and makes them even better without requiring us to wait for another decade. We could simply bring in the networking capabilities of IoT devices and distribute the workload and leverage dynamic intelligence models that neither fog nor edge computing provides. Setting up this new paradigm could bring in high speed data processing and intelligence extraction from devices that have a 256kb memory size and ~100kb/second data transfer rate.Characteristics of IOTs

Connectivity- devices need to be connected to each other and the internet Things- anything that can be tagged or connected Data- it is the main component of its. The first step towards action and intelligence Communication- devices get connected so they ca communicate data and this data can

be analysed.Benefits of IOTS to business organizationsIncrease Business Opportunities: IoT opens the door for new business opportunities and helps companies benefit from new revenue streams developed by advanced business models and services. IoT-driven innovations build strong business cases, reduce time to market and increase return on investments. IoT has the potential to transform the way consumers and businesses approach the world by leveraging the scope of the IoT beyond connectivity.Enhanced Asset Utilization: IoT will improve tracking of assets (equipment, machinery, tools, etc.) using sensors and connectivity, which helps organizations benefit from real-time insights. Organizations could more easily locate issues in the assets and run preventive maintenance to improve asset utilization.Efficient Processes: Being connected with a maximum number of devices to the internet, IoT allow businesses to be smarter with real-time operational insights while reducing operating costs. The data collected from logistics network, factory floor, and supply chain will help reduce inventory, time to market and downtime due to maintenance.Improved Safety and Security: IoT services integrated with sensors and video cameras help monitor workplace to ensure equipment safety and protect against physical threats. The IoT connectivity coordinates multiple teams to resolve issues promptly.Increase Productivity: Productivity plays a key role in the profitability of any business. IoT offers just-in-time training for employees, improve labour efficiency, and reduce mismatch of skills while increasing organizational productivity.Cost Saving: The improved asset utilization, productivity, and process efficiencies can save your expenditures. For example, predictive analytics and real-time diagnostics drive down the maintenance costs. IoT has reached the pinnacle of inflated expectations of emerging technologies. Even though IoT offers great potential value, organizations must overcome some significant challenges like data and information management issues, lack of interoperable technologies, security and privacy concerns, and the skills to manage Iota’s growing complexity. However, a professional IoT service provider can overcome these challenges and increase your return on investment. Moksha provides persuasive IoT solutions with innovative business models that improve productivity and operational excellence while achieving high-efficiency business value.Disadvantages of IOTS in an organization


Compatibility: -As of now, there is no standard for tagging and monitoring with sensors. A uniform concept like the USB or Bluetooth is required which should not be that difficult to do.Complexity: -There are several opportunities for failure with complex systems. For example, both you and your spouse may receive messages that the milk is over and both of you may end up buying the same. That leaves you with double the quantity required. Or there is a software bug causing the printer to order ink multiple times when it requires a single cartridge. Privacy/Security: - Privacy is a big issue with IoT. All the data must be encrypted so that data about your financial status or how much milk you consume isn’t common knowledge at the work place or with your friends. Safety: -There is a chance that the software can be hacked and your personal information misused. The possibilities are endless. Your prescription being changed or your account details being hacked could put you at risk. Hence, all the safety risks become the consumer’s responsibility.Areas of application for itsIota in Retail Industry: Retail Industry is the industry which has a large number of employees, customers and assets. With the implementation of IoT in the retail industry, store owners can monitor their premises anytime and anywhere to improve operational efficiency. With the temperature and environment sensors, one can set specific limits and receive real time notification and alerts, once it exceeds the desired set point, which directly results in enhancing better customer experience. The solutions which are IoT based are able to provide actionable business analytic for making smarter business decision.IoT in QSRs: With the technologies like IoT, it can help restaurants to connect with the customers, identify problems and controlling costs. IoT has completely changed the working of restaurants. The taste of food attracts customers at a restaurant but, a great dining experience makes them revisit the same. A great dining experience is a cumulative result of good food & multiple factors like hygiene, staff behavior, service, and overall safety. QSR owners need actionable insights & complete visibility over these factors to ensure that intelligent decisions are made for the same.IoT in hospitality: Intel estimated the number of connected devices to reach 200 billion by 2020. IoT is revolutionizing the hospitality industry in a better way. The main aim of hospitality industry is to provide better customer experience. Hospitality Industry is using IoT technology in providing Automated Guest Rooms, to improve the Quality of Air, providing Mobile Integration and to save the cost.

IoT in agriculture: With the continuous increase in world’s population, demand for food supply is extremely raised. Governments are helping farmers to use advanced techniques and research to increase food production. Smart farming is one of the fastest growing fields in IoT. Farmers are using meaningful insights from the data to yield better return on investment. Sensing for soil moisture and nutrients, controlling water usage for plant growth and determining custom fertilizer are some simple uses of IoT.


Energy Engagement: Power grids of the future will not only be smart enough but also highly reliable. Smart grid concept is becoming very popular all over world. The basic idea behind the smart grids is to collect data in an automated fashion and analyse the behaviour or electricity consumers and suppliers for improving efficiency as well as economics of electricity use. Smart Grids will also be able to detect sources of power outages more quickly and at individual household levels like nearby solar panel, making possible distributed energy system.

IOT in Healthcare: Connected healthcare yet remains the sleeping giant of the Internet of Things applications. The concept of connected healthcare system and smart medical devices bears enormous potential not just for companies, but also for the well-being of people in general. Research shows IoT in healthcare will be massive in coming years. IoT in healthcare is aimed at empowering people to live healthier life by wearing connected devices. The collected data will help in personalized analysis of an individual’s health and provide tailor made strategies to combat illness. The video below explains how IoT can revolutionize treatment and medical help.BIG DATABig data refers to the large, diverse sets of information that grow at ever-increasing rates. It encompasses the volume of information, the velocity or speed at which it is created and collected, and the variety or scope of the data points being covered. Big data often comes from multiple sources and arrives in multiple formats. It is a combination of structured, semi structured and unstructured data collected by organizations.Types of big data

1. Structured: By structured data, we mean data that can be processed, stored, and retrieved in a fixed format. It refers to highly organized information that can be readily and seamlessly stored and accessed from a database by simple search engine algorithms. For instance, the employee table in a company database will be structured as the employee details, their job positions, their salaries, etc., will be present in an organized manner.

2. Unstructured: Unstructured data refers to the data that lacks any specific form or structure whatsoever. This makes it very difficult and time-consuming to process and analyse unstructured data. Email is an example of unstructured data.

3. Semi-structured: Semi-structured data pertains to the data containing both the formats mentioned above, that is, structured and unstructured data. To be precise, it refers to the data that although has not been classified under a particular repository (database), yet contains vital information or tags that segregate individual elements within the data.

Characteristics of big data.1. Variety: Variety of Big Data refers to structured, unstructured, and semi structured

data that is gathered from multiple sources. While in the past, data could only be collected from spreadsheets and databases, today data comes in an array of forms such as emails, PDFs, photos, videos, audios, SM posts, and so much more.


https://www.investopedia.com/terms/d/datamining.asp

https://www.investopedia.com/terms/d/datamining.asp

2. Velocity: Velocity essentially refers to the speed at which data is being created in real-time. In a broader prospect, it comprises the rate of change, linking of incoming data sets at varying speeds, and activity bursts.

3. Volume: We already know that Big Data indicates huge ‘volumes’ of data that is being generated on a daily basis from various sources like social media platforms, business processes, machines, networks, human interactions, etc. Such a large amount of data is stored in data warehouses.

Advantages of big data Predictive analysis. -Big Data analytics tools can predict outcomes accurately,

thereby, allowing businesses and organizations to make better decisions, while simultaneously optimizing their operational efficiencies and reducing risks.

Improve customer experience -By harnessing data from social media platforms using Big Data analytics tools, businesses around the world are streamlining their digital marketing strategies to enhance the overall consumer experience. Big Data provides insights into the customer pain points and allows companies to improve upon their products and services.

Accuracy- Big Data combines relevant data from multiple sources to produce highly actionable insights.

Companies generate more sales- this would naturally mean a boost in revenue. Businesses are using Big Data analytics tools to understand how well their products/services are doing in the market and how the customers are responding to them. Thus, the can understand better where to invest their time and money.

stay a step ahead of your competitors.- You can screen the market to know what kind of promotions and offers your rivals are providing, and then you can come up with better offers for your customers.

Also, Big Data insights allow you to learn customer behaviour- this to understand the customer trends and provide a highly ‘personalized’ experience to them.

Disadvantages of big data. Privacy and Security Concerns: One of the notable disadvantages of Big Data

centres on emerging concerns over privacy rights and security. Even large business organizations such as Yahoo and Facebook have figured in numerous instances of data breach. Organizations seeking to develop and maintain Big Data capabilities also need to invest on protocols, processes, and infrastructure aimed at protecting data and mitigating security risks.

Technical Challenges and Requirements: Big Data requires both processing capabilities and technical proficiency. In other words, for an organization to have the capacity to mine large volumes of data, they need to invest in information technology infrastructure composed of large databases, processors with adequate computing power, and other IT capabilities. Furthermore, they need to have a certain degree of competency that would allow them to address more specific issues such as data storage and transportation, database management, data access and sharing, quality and validity assurance, and scalability of the infrastructure, among others. Note that these challenges and requirements necessitate substantial investment.


https://www.profolus.com/topics/right-to-privacy-101-basis-definition-and-purpose/

Issue over the Value of Big Data: Another problem with Big Data is the persistence of concerns over its actual value for organizations. As mentioned, resolving the challenges and responding to the requirements of its implementation involve investment. Not all organizations can afford these costs. Large organizations can easily develop Big Data capabilities, thus putting their smaller counterparts at a disadvantage. It appears that due to the costs, as well as the drawbacks and risks of Big Data, its advantageous applications only benefit large organizations, especially established businesses, while expanding further the competitive gap between them and smaller organizations.

Areas of application for big dataHealthcare: Big Data has already started to create a huge difference in the healthcare sector. With the help of predictive analytics, medical professionals and HCPs are now able to provide personalized healthcare services to individual patients. Apart from that, fitness wearables, telemedicine, remote monitoring – all powered by Big Data and AI – are helping change lives for the better.Academia: Big Data is also helping enhance education today. Education is no more limited to the physical bounds of the classroom – there are numerous online educational courses to learn from. Academic institutions are investing in digital courses powered by Big Data technologies to aid the all-round development of budding learners.Banking: The banking sector relies on Big Data for fraud detection. Big Data tools can efficiently detect fraudulent acts in real-time such as misuse of credit/debit cards, archival of inspection tracks, faulty alteration in customer stats, etc.Manufacturing: In the manufacturing sector, Big data helps create a transparent infrastructure, thereby, predicting uncertainties and incompetence’s that can affect the business adversely.IT: One of the largest users of Big Data, IT companies around the world are using Big Data to optimize their functioning, enhance employee productivity, and minimize risks in business operations. By combining Big Data technologies with ML and AI, the IT sector is continually powering innovation to find solutions even for the most complex of problems.

DATA MINING Data mining is a process used by companies to turn raw data into useful information. It involves exploring and analysing large blocks of information to glean meaningful patterns and trends. It can be used in a variety of ways, such as database marketing, credit risk management, fraud detection, spam Email filtering, or even to discern the sentiment or opinion of users.Data mining techniques

1. Tracking patterns. One of the most basic techniques in data mining is learning to recognize patterns in your data sets. This is usually recognition of some aberration in your data happening at regular intervals, or an ebb and flow of a certain variable over time. For example, you might see that your sales of a certain product seem to spike just before the holidays, or notice that warmer weather drives more people to your website.


https://www.investopedia.com/financial-edge/0512/the-most-common-types-of-consumer-fraud.aspx

2. Classification. Classification is a more complex data mining technique that forces you to collect various attributes together into discernible categories, which you can then use to draw further conclusions, or serve some function. For example, if you’re evaluating data on individual customers’ financial backgrounds and purchase histories, you might be able to classify them as “low,” “medium,” or “high” credit risks. You could then use these classifications to learn even more about those customers.

3. Association. Association is related to tracking patterns, but is more specific to dependently linked variables. In this case, you’ll look for specific events or attributes that are highly correlated with another event or attribute; for example, you might notice that when your customers buy a specific item, they also often buy a second, related item. This is usually what’s used to populate “people also bought” sections of online stores.

4. Outlier detection. In many cases, simply recognizing the overarching pattern can’t give you a clear understanding of your data set. You also need to be able to identify anomalies, or outliers in your data. For example, if your purchasers are almost exclusively male, but during one strange week in July, there’s a huge spike in female purchasers, you’ll want to investigate the spike and see what drove it, so you can either replicate it or better understand your audience in the process.

5. Clustering. Clustering is very similar to classification, but involves grouping chunks of data together based on their similarities. For example, you might choose to cluster different demographics of your audience into different packets based on how much disposable income they have, or how often they tend to shop at your store.

6. Regression. Regression, used primarily as a form of planning and modelling, is used to identify the likelihood of a certain variable, given the presence of other variables. For example, you could use it to project a certain price, based on other factors like availability, consumer demand, and competition. More specifically, regression’s main focus is to help you uncover the exact relationship between two (or more) variables in a given data set.

7. Prediction. Prediction is one of the most valuable data mining techniques, since it’s used to project the types of data you’ll see in the future. In many cases, just recognizing and understanding historical trends is enough to chart a somewhat accurate prediction of what will happen in the future. For example, you might review consumers’ credit histories and past purchases to predict whether they’ll be a credit risk in the future.

Characteristics of Data Mining:Data mining service is an easy form of information gathering methodology wherein which all the relevant information goes through some sort of identification process. And eventually at the end of this process, one can determine all the characteristics of the data mining process.


Increased quantities of data:In earlier days, the data mining system can be determined with the help of their clients and customers, but in today’s date, one can acquire any number of information without the help of those clients. Moreover, after this kind of revolution in the mining system, it also added one more problem and that is large quantities of work. With the help of this information technology, one can acquire a large number of information without any extra burden or trouble.

Provides incomplete data:Most of the people provide incomplete information about themselves in some of the survey conducted with the help of data mining systems. Therefore, people ignore the value of their information and that is why they provide incomplete information about themselves in those surveys conducted for the benefit of the mining systems. Moreover, these mining systems changed the perspective of people and because of that, people fear the exchange of their personal information.

Complicated data structure:Data mining is a form wherein which all the information is gathered and incorporated with the help of information collection techniques. These information collecting techniques are more of manual and rest is technological. Therefore, most of the understanding and determination of these mining can be a bit complicated than other structure of information technology.Advantages of data mining

It is helpful to predict future trends:Most of the working nature of the data mining systems carries on all the informational factors of the elements and their structure. One of the common benefits that can be derived with these data mining systems is that they can be helpful while predicting future trends. And that is quite possible with the help of technology and behavioural changes adopted by the people.

It signifies customer habits:

While working in the marketing industry one can understand all the matters of customer behaviour and their habits. And that is possible with the help of data mining systems. As these data mining systems handle all the information acquiring techniques. It is helpful in keeping track of customer habits and their behaviour.

Helps in decision making:There are some people who make use of these data mining techniques to help them with some kind of decision making. Nowadays, all the information about anything can be determined easily with the help of technology and similarly, with the help of such technology one can make a precise decision about something unknown and unexpected.


https://content.wisestep.com/how-to-make-good-decisions-quickly-steps/

https://www.brandwatch.com/blog/how-understand-influence-consumer-behavior/

https://www.brandwatch.com/blog/how-understand-influence-consumer-behavior/

Increase company revenue:As it has been explained earlier that data mining is a process wherein which it involves some sort of technology to acquire some information about anything possible. And this type of technology makes things easier for their profit earnings ratio. As people can collect information about the marketed products online, which eventually reduces the cost of the product and their services?

It depends upon market-based analysis:Data mining process is a system wherein which all the information has been gathered on the basis of market information. Nowadays, technology plays a crucial role in everything and that casualty can be seen in these data mining systems. Therefore, all the information collected through these data mining is basically from marketing analysis.

Quick fraud detection:Most parts of the data mining process are basically from information gathered with the help of marketing analysis. With the help of such marketing analysis, one can also find out those fraudulent acts and products available in the market. Moreover, with the help of it one can understand the importance of accurate information.

Limitations or Disadvantages of Data Mining Techniques:Data mining technology is something which helps one person in their decision making and that decision making is a process wherein which all the factors of mining is involved precisely. And while the involvement of these mining systems, one can come across several disadvantages of data mining and they are as follows.

It violates user privacy: It is a known fact that data mining collects information about people using some market-based techniques and information technology. And these data mining process involves several numbers of factors. But while involving those factors, data mining system violates the privacy of its user and that is why it lacks in the matters of safety and security of its users. Eventually, it creates Miss-communication between people.

Additional irrelevant information: The main functions of the data mining systems create a relevant space for beneficial information. But the main problem with these information collections is that there is a possibility that the collection of information processes can be a little overwhelming for all. Therefore, it is very much essential to maintain a minimum level of limit for all the data mining techniques.

Misuse of information: As it has been explained earlier that in the data mining system the possibility of safety and security measure are really minimal. And that is why some can misuse this information to harm others in their own way. Therefore, the data mining system needs to change its course of working so that it can reduce the ratio of misuse of information through the mining process.


Accuracy of data: Most of the time while collecting information about certain elements one used to seek help from their clients, but nowadays everything has changed. And now the process of information collection made things easy with the mining technology and their methods. One of the most possible limitations of this data mining system is that it can provide accuracy of data with its own limits.Applications of data mining.

Market Analysis and Management:The following mentioned are the various fields of the market where the data mining process is effectively used,

Customer Profiling Finding customer requirements Cross-market analysis Target marketing Determining customer purchasing pattern Provides summary information

Corporate Analysis and Risk Management:The following mentioned are the various fields of the corporate sector where the data mining process is effectively used,

Finance Planning Asset Evaluation Resource Planning Competition

Fraud Detection: Frauds and malware is one of the most dangerous threats on the internet. It is almost a kind of crime that is increasing day after day. The fraud detection process can be mainly used through credit card services and telecommunication. With the help of the services most of the important information like duration of the call, location, the time and day etc. can be acquired which helps in big time.DATA WAREHOUSING.

Data warehousing is defined as a technique for collecting and managing data from varied sources to provide meaningful business insights. It is a blend of technologies and components which aids the strategic use of data. It is electronic storage of a large amount of information by a business which is designed for query and analysis instead of transaction processing. It is a process of transforming data into information and making it available to users in a timely manner to make a difference.

Types of data warehouse


Enterprise Data Warehouse: Enterprise Data Warehouse is a centralized warehouse. It provides decision support service across the enterprise. It offers a unified approach for organizing and representing data. It also provides the ability to classify data according to the subject and give access according to those divisions.

Operational Data Store: Operational Data Store, which is also called ODS, are nothing but data store required when neither Data warehouse nor OLTP systems support organizations reporting needs. In ODS, Data warehouse is refreshed in real time. Hence, it is widely preferred for routine activities like storing records of the Employees.

Data Mart: A data mart is a subset of the data warehouse. It specially designed for a particular line of business, such as sales, finance, sales or finance. In an independent data mart, data can collect directly from sources.

Components of data warehouses

Load manager: Load manager is also called the front component. It performs with all the operations associated with the extraction and load of data into the warehouse. These operations include transformations to prepare the data for entering into the Data warehouse.

Warehouse Manager: Warehouse manager performs operations associated with the management of the data in the warehouse. It performs operations like analysis of data to ensure consistency, creation of indexes and views, generation of demoralization and aggregations, transformation and merging of source data and archiving and baking-up data.

Query Manager: Query manager is also known as backend component. It performs all the operation operations related to the management of user queries. The operations of these Data warehouse components are direct queries to the appropriate tables for scheduling the execution of queries.

End-user access tools: This is categorized into five different groups like Data Reporting, Query Tools, Application development tools, EIS tools, OLAP tools and data mining tools.

Characteristics of data warehouses

Subject-oriented:

It can perform in a particular subject area. It means the data warehousing prime-variant:

It discovers different time limits that modulate within the large amounts of data and holds in online transaction processing.

It means by time-variant when the data sent into the causes of the support of staging files.


It normally proceeds with the majority of data that handle by large tables containing updated facts.

Non-volatile:It encompasses the high quantity of data that enters into change within the selected quantity on logical business. It enumerates the analysis in the warehouse technologies. Non-volatility will make people understand what has occurred. It makes a clear sense of analysis that is done.

Integrated:It is similar to the subject orientation that made in a consistent format. It should resolve the problems and make the disparate problem. It has a finite number of procedures for issues such as naming conventions, conflicts, units of measure, inconsistent values. It manages a different subject related to warehouse information.

Advantages of Data Warehouse:

Data warehouse allows business users to quickly access critical data from some sources all in one place.

Data warehouse provides consistent information on various cross-functional activities. It is also supporting ad-hoc reporting and query.

Data Warehouse helps to integrate many sources of data to reduce stress on the production system.

Data warehouse helps to reduce total turnaround time for analysis and reporting. Restructuring and Integration make it easier for the user to use for reporting and

analysis. Data warehouse allows users to access critical data from the number of sources in a

single place. Therefore, it saves user's time of retrieving data from multiple sources. Data warehouse stores a large amount of historical data. This helps users to analyse

different time periods and trends to make future predictions.

Disadvantages of Data Warehouse:

Not an ideal option for unstructured data. Creation and Implementation of Data Warehouse is surely time confusing affair. Data Warehouse can be outdated relatively quickly Difficult to make changes in data types and ranges, data source schema, indexes, and

queries. The data warehouse may seem easy, but actually, it is too complex for the average

users. Despite best efforts at project management, data warehousing project scope will

always increase. Sometime warehouse users will develop different business rules.


Organisations need to spend lots of their resources for training and Implementation purpose.

Areas of application for data warehouses

Airline Banking services Healthcare Public sector Investment and Insurance sector Telecommunication Hospitality Industry Financial services Retail sectors Consumer goods Controlled manufacturing

Conclusion

There are a lot of modern technology trends that are emerging every day. As technology evolves it is having tonnes of advantages and disadvantages and people in the field of data science should come up with solutions that prevent damaging uses of information and modern technology. In the near future people will be required to have basic information technology knowledge because technology is the future in all fields of business.


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