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MIS PDF - Lecture notes 1-20

Business Taxation-I (University of the Punjab)

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Management
Information
Systems

Sahil Notes

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Week 1

Definition of Management Information Systems

 Basics. Management information systems refer to the practice of integrating computer systems, ...

 Descriptive Information. Descriptive information provided by a MIS gives a company ...

 Diagnostic Information. A MIS also provides companies with diagnostic information.

 Predictive Information. As indicated by its name, ...

2nd definition

A management information system (MIS) is an information system used for decision-making, and for
the coordination, control, analysis, and visualization of information in an organization. The study of the
management information systems involves people, processes and technology in an organizational context.

Types of Information System: TPS, DSS & Pyramid Diagram

A typical organization is divided into operational, middle, and upper level. The information requirements for users
at each level differ. Towards that end, there are number of information systems that support each level in an
organization.

This tutorial will explore the different types of information systems, the organizational level that uses them and
the characteristics of the particular information system.

In this tutorial, you will learn the different Classification of Information.

 Pyramid Diagram of Organizational levels and information requirements

 Transaction Processing System (TPS)
 Management Information System (MIS)
 Decision Support System (DSS)
 Artificial intelligence techniques in business
 Online Analytical Processing (OLAP)

Pyramid Diagram of Organizational levels and information requirements

Understanding the various levels of an organization is essential to understand the information required by the users
who operate at their respective levels.

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The following diagram illustrates the various levels of a typical organization.

Operational management level

The operational level is concerned with performing day to day business transactions of the organization.

Examples of users at this level of management include cashiers at a point of sale, bank tellers, nurses in a hospital,
customer care staff, etc.

Users at this level use make structured decisions. This means that they have defined rules that guides them while
making decisions.

For example, if a store sells items on credit and they have a credit policy that has some set limit on the borrowing.
All the sales person needs to decide whether to give credit to a customer or not is based on the current credit
information from the system.

Tactical Management Level

This organization level is dominated by middle-level managers, heads of departments, supervisors, etc. The users
at this level usually oversee the activities of the users at the operational management level.

Tactical users make semi-structured decisions. The decisions are partly based on set guidelines and judgmental
calls. As an example, a tactical manager can check the credit limit and payments history of a customer and decide
to make an exception to raise the credit limit for a particular customer. The decision is partly structured in the sense
that the tactical manager has to use existing information to identify a payments history that benefits the organization
and an allowed increase percentage.

Strategic Management Level

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This is the most senior level in an organization. The users at this level make unstructured decisions. Senior level
managers are concerned with the long-term planning of the organization. They use information from tactical
managers and external data to guide them when making unstructured decisions.

Transaction Processing System (TPS)

Transaction processing systems are used to record day to day business transactions of the organization. They are
used by users at the operational management level. The main objective of a transaction processing system is to
answer routine questions such as;

 How printers were sold today?

 How much inventory do we have at hand?
 What is the outstanding due for John Doe?

By recording the day to day business transactions, TPS system provides answers to the above questions in a timely
manner.

 The decisions made by operational managers are routine and highly structured.
 The information produced from the transaction processing system is very detailed.

For example, banks that give out loans require that the company that a person works for should have a
memorandum of understanding (MoU) with the bank. If a person whose employer has a MoU with the bank applies
for a loan, all that the operational staff has to do is verify the submitted documents. If they meet the requirements,
then the loan application documents are processed. If they do not meet the requirements, then the client is advised
to see tactical management staff to see the possibility of signing a MoU.

Examples of transaction processing systems include;

 Point of Sale Systems – records daily sales

 Payroll systems – processing employees salary, loans management, etc.
 Stock Control systems – keeping track of inventory levels
 Airline booking systems – flights booking management

Management Information System (MIS)

Management Information Systems (MIS) are used by tactical managers to monitor the organization's current
performance status. The output from a transaction processing system is used as input to a management information
system.

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The MIS system analyzes the input with routine algorithms i.e. aggregate, compare and summarizes the results to
produced reports that tactical managers use to monitor, control and predict future performance.

For example, input from a point of sale system can be used to analyze trends of products that are performing well
and those that are not performing well. This information can be used to make future inventory orders i.e. increasing
orders for well-performing products and reduce the orders of products that are not performing well.

Examples of management information systems include;

 Sales management systems – they get input from the point of sale system
 Budgeting systems – gives an overview of how much money is spent within the organization for the short
and long terms.
 Human resource management system – overall welfare of the employees, staff turnover, etc.

Tactical managers are responsible for the semi-structured decision. MIS systems provide the information needed
to make the structured decision and based on the experience of the tactical managers, they make judgement calls
i.e. predict how much of goods or inventory should be ordered for the second quarter based on the sales of the first
quarter.

Decision Support System (DSS)

Decision support systems are used by senior management to make non-routine decisions. Decision support systems
use input from internal systems (transaction processing systems and management information systems) and
external systems.

The main objective of decision support systems is to provide solutions to problems that are unique and change
frequently. Decision support systems answer questions such as;

 What would be the impact of employees' performance if we double the production lot at the factory?
 What would happen to our sales if a new competitor entered the market?

Decision support systems use sophisticated mathematical models, and statistical techniques (probability, predictive
modeling, etc.) to provide solutions, and they are very interactive.

Examples of decision support systems include;

 Financial planning systems – it enables managers to evaluate alternative ways of achieving goals. The
objective is to find the optimal way of achieving the goal. For example, the net profit for a business is
calculated using the formula Total Sales less (Cost of Goods + Expenses). A financial planning system will

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enable senior executives to ask what if questions and adjust the values for total sales, the cost of goods, etc.
to see the effect of the decision and on the net profit and find the most optimal way.
 Bank loan management systems – it is used to verify the credit of the loan applicant and predict the
likelihood of the loan being recovered.

Artificial intelligence techniques in business

Artificial intelligence systems mimic human expertise to identify patterns in large data sets. Companies such as
Amazon, Facebook, and Google, etc. use artificial intelligence techniques to identify data that is most relevant to
you.

Let's use Facebook as an example, Facebook usually makes very accurate predictions of people that you might
know or went with to school. They use the data that you provide to them, the data that your friends provide and
based on this information make predictions of people that you might know.

Amazon uses artificial intelligence techniques too to suggest products that you should buy also based on what you
are currently getting.

Google also uses artificial intelligence to give you the most relevant search results based on your interactions with
Google and your location.

These techniques have greatly contributed in making these companies very successful because they are able to
provide value to their customers.

Online Analytical Processing (OLAP)

Online analytical processing (OLAP) is used to query and analyze multi-dimensional data and produce information
that can be viewed in different ways using multiple dimensions.

Let's say a company sells laptops, desktops, and Mobile device. They have four (4) branches A, B, C and D. OLAP
can be used to view the total sales of each product in all regions and compare the actual sales with the projected
sales.

Each piece of information such as product, number of sales, sales value represents a different dimension

The main objective of OLAP systems is to provide answers to ad hoc queries within the shortest possible time
regardless of the size of the datasets being used.

There are various types of information systems, few of them are listed below:
 Transaction processing system
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 Decision support system

 executive information system

 Management information system

 Workflow system

 Enterprise resource planning and

 Expert systems.

The Role of Information Systems in Running the 21st Century Organization

Management Information Systems (MIS) focus on the use of Information and Communication Technologies (ICT)
in managing organizations. In the 21st century almost all organizations use Information and Communication
Technologies to efficiently manage their operations, to help managers make better decisions and achieve
competitive advantage, and to facilitate seamless internal and external communications with their employees,
customers, partners, and other stakeholders.
Businesses Pre-Information Systems

Until the 1990s, before the widespread adoption of personal computers and the Internet, companies were using
information systems to manage data processing and record-keeping activities associated with business transactions
like maintaining the general ledger (book keeping), payroll, billing, inventory management, etc. The focus was
mainly on maintaining files and databases related to day-to-day operations. Communications, both internal and
external, relied on paper, telephone, faxes, and other analog media. Information systems have evolved over the last

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40 years, including the move from the mainframe computer of the 1970s to personal computers becoming an
integral part of the tracking and organizational process in the 1980s. The arrival of the mainstream internet in the
1990s expanded business capabilities and the role of information systems to a global system of interaction.

Today, the main focus of companies is to stay globally competitive by leveraging the capabilities of modern
information and communication technologies (ICT). Companies can use ICT to provide products & services of the
highest quality at affordable prices and top-rated customer service, and help the companies to enter new markets
through e-commerce. Globalization, collaboration, and integration have become the new drivers in this competitive
arena. To remain competitive, companies are investing in modern information systems like Enterprise Resource
Planning (ERP) software, which integrate the different functional areas of the business, and provide consistent
real-time data for fast decision making. ERP systems help companies manage their operations seamlessly across
the globe.
Modern Day Use of Information Systems

In the past when a company received a customer order, whether it was for a service requested or for a product
purchased, the order needed to go through a process of paper-based workflow that was passed along to different
departments, inbox-to-inbox. Throughout this process, the order often had to be re-typed as it passed through
various departments, increasing the potential for human error. There was no accurate account order status because
there was no official tracking device to alert each department. In order to retrieve order status information,
customers were frequently directed to contact the company‘s warehouse for manual research!

Today, companies have eliminated the inaccuracy of paper-based tracking by implementing ERP systems. In a
recent study conducted by Panorama Consulting Solutions, 63 percent of companies used their ERP software to
eliminate inefficiencies in processes such as order tracking. Instead of standalone computer systems, ERP uses a
unified program that links various functional departments such as finance, HR, manufacturing, warehouse,
planning, purchasing, inventory, sales, and marketing. While each department may have its own set of software
modules, the software is interconnected so that information can be shared throughout the organization. Once one
department is finished updating and processing the order, it is automatically routed to the next department so that
everyone is alerted to changes made.
Adopting the Global Market

Many businesses have begun to participate in the global market, as it presents a chance for greater revenue and
larger business prospects.

Already, the global information systems market has seen consistent demands from several businesses. The
challenges vary depending on the size of businesses. For smaller businesses, controlling operations and storing
information are less complicated. As businesses grow, especially those intersecting with global relations,
information systems are used to manage operations accurately without growing the number of employees. The
growing supply chains require that software solutions be used in the following sectors:
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 Web-based ordering
 Customer relationship management
 Product configuration

The Future of Information Systems

As companies try to reduce costs, improve productivity, employers are looking to ERP systems to help them grow
and remain competitive globally. Information systems have enhanced productivity for businesses. A career in
managing information systems is ideal for those looking to advance in a Fortune 500 company. As businesses and
organizations today require more and more technical skills, companies are looking for employees who will help
manage and operate the various information-based tools.
Among the many degree and certificate programs available online at The University of Scranton are the two
programs pertaining to Enterprise Resource Planning (ERP). These programs provide hands-on experience in
utilizing SAP ERP, the market leader in ERP software today. The ERP programs offered at The University of
Scranton are: (i) a stand-alone, 4-course Graduate Certificate program; and (ii) an ERP specialization within the
MBA program.

Classification of Information System

 Operations support system. In an organization, data input is done by the end user which is processed to
generate information products i.e. ...

 Transaction Processing System (TPS) In manufacturing organization, there are several types of transaction
across department. ...

 Process Control System. ...

 Enterprise Collaboration System. ...

 Management Support System. ...

What is the classification of information? Into how many times it has been categorized?

Information can be classified in a number of ways and in this chapter; you will learn two of the most important
ways to classify information.

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Classification by Characteristic

Based on Anthony's classification of Management, information that is used in business for decision-making is
generally categorized into three types:

 Strategic Information: Strategic information deals with the objectives of a business with long term policy
decisions and checks whether these objectives are met up to their level or not. For example, acquiring a new
plant, a new product, diversification of business etc, comes under strategic information.
 Tactical Information: Tactical information deals with the information needed to control over business
resources, like budgeting, quality control, service level, inventory level, productivity level etc.
 Operational Information: Operational information deals with plant/business level information and is used to
handle proper conduction of specific operational tasks as planned/intended. Various operator specific, machine
specific and shift specific jobs for quality control checks comes under this category.

Classification by Application

In terms of applications, information can be categorized as:

 Planning Information: These are the information used in business organizations maintaining standard norms
and specifications. Everything is planned here. This information is used in strategic, tactical, and operation
planning of any activity. Examples of such information are time standards, design standards.

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 Control Information: This information is required for specific activities performed by the system in order to
attain their objectives. This information might be formal or informal. It is used for controlling attainment, nature
and utilization of important processes in a system. When this information did get any deviation from the
established standards, the system should develop a decision or an action leading to control the information
related to their objectives.
 Knowledge Information: Knowledge is defined as "information about information". Knowledge information
is acquired through experience and learning, and collected from archival data and research studies.
 Organizational Information: Organizational information deals with an organization's environment, where
organizational objectives are met. Karl Weick's Organizational Information Theory emphasizes that an
organization reduces its equivocality or uncertainty by collecting, managing and using these information
carefully. This information is used by everybody in the organization; examples of such information are
employee and payroll information.
 Functional/Operational Information: This is operation specific information where the organization assists to
perform its functions of day-day transactions. Mainly holds technical work For example, daily schedules in a
manufacturing plant that refers to the detailed assignment of jobs to machines or machines to operators. In a
service oriented business, it would be the duty roster of various personnel. This information is mostly internal
to the organization.
 Database Information: Database information as we know that it is a collection of related data that is stored,
retrieved and managed to form databases. It stores large quantities of information that has multiple usage and
application. For example, material specification or supplier information is stored for multiple users. It is a type
of software program.

/……………………………………………………….

Information as Discipline

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Information Systems (IS) is a professional and academic discipline concerned with the strategic, managerial and
operational activities involved in the gathering, processing, storing, distributing and use of information, and its
associated technologies, in society and organizations

IS Opportunities & Challenges

838 words (3 pages) Essay

6th Sep 2017 Information Systems Reference this

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Intro:

In this modern times, the world operates on numerous information systems. It is evolving rapidly and the
functionality of it is seemingly increasing and so information system is becoming a requirement and not a choice.

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Today, an electronic network which is the internet allows access to a vast amount of information sources. This
indicates every single individual and organisations can obtain information with no problems if the entity has
internet access. Currently, information is accessible from database, WAIS (Wide Area Information Servers),
gopher, and a wide variety of sites which contains information across the web. Every large company worldwide
that relies on e-commerce have been globalized through the internet and so companies such as Amazon, VF, Ebay
or Walmart are very successful in terms of marketing and sales. However, opportunities in a global scale presents
several challenges including culture and language, distance and time.

With the creation of the internet, the augmentation of global markets is feasible. There is an abundance in terms of
the number of business transactions that occurs each day through the internet globally. The use of information
technology provides support to business processes that allows operations such as business-to-customer or business-
to-business transaction to be easier.

Cultural challenge

The information system is conflicted internationally by cultural differences in various other countries and areas of
the world. Every country in the world has its own traditions and culture that may differ from and not accustomed
to other country. These dissimilarities form a cultural barrier in which affects companies that endeavor global
trade. The difficulties that businesses will encounter are managing people, tastes, issue with ethics, gestures and
specific groups averse to ―Westernisation‖. An American commercial fast-food franchise company such as
McDonalds may find it difficult to establish other franchisee in other continent like Asia due to preference of taste.
The technologies applied to entice the customers in the United States to McDonalds‘ taste of food could be
irrelevant as it may not work in Asia. Therefore, organisations managing food products must examine and alter the
taste of their food to ensure that they satisfy the local demands.

Language challenge:

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On the internet, the most common language used is English. However, there is only a fraction of 26.3 percent that
speaks English as opposed to 74.7 percent of non-English speaking countries.
(https://www.statista.com/statistics/262946/share-of-the-most-common-languages-on-the-internet/). There is a
seemingly an issue with the translation of information to other languages which causes a laborious process of
translating the precise meaning of the info from one language to another. Google has provided a solution in
translating dialogue, text, pictures, or real-time videos into 103 different languages.
(http://www.bgr.in/news/google-translate-turns-10-now-supports-103-languages-translates-100-billion-words-
every-day/). The challenge that large companies which retains international partners must decide on choosing a
common language. Information is required to be translated due to the lack of computers capability to accurately
translate words.

The Challenge of distance and time:

Time differences is a challenge for people to communicate with others that resides in a different part of the world.
The products may have a delivery time of days, weeks or even months to be received to other countries. This
creates delays and disruption with business transaction which causes employees and customers located in different
countries to have difficulty with getting connected. VF, an apparel manufacturer company has formed an idea of
constructing ―new communication tools that make it easier for everyone to work together‖. (reading review1) By
doing this, it allowed them to combat these challenges and provided a solution they need to increase the longevity
of their company.

Conclusion:

Looking at the global challenges in information system stated above shows us the overview of companies that uses
e-commerce must deal with. Modern technology and the use of internet is changing how Businesses and
organisations around the globe is operating. More and more are advertising their products online to effectively
make sales. Companies utitlise technology to ensure handling good teamwork is attained across geographical
boundaries. However, there is a concern for challenges that come with the development of technology in
information systems.

Week 2

Management Information Systems

Introduction

Introduction to Information Systems provides the basics of information systems, a requirement for everyone
working in various types of organizations today. Information technology is an extremely important and
increasingly complex component of business and professional organizations

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An Information System is a man-made system that facilitates an organization's operational functions and supports
management decision-making by providing information that managers can use to plan and control the activities of
the firm.

Role of Management Information Systems in Organizations

The role of management information systems in organization decision-making processes is key to helping
businesses reduce waste and increase profits. MIS reports can be used by individual managers and groups of
managers and can be shown to employees to highlight where they are performing well and where they need to
grow.

When management has an accurate report, they do not have to guess about who is doing well or what needs to
be improved or wonder where their blind spots are. The data help them see a clearer, less-biased picture than
they could come up with on their own.

Implementing Management Information Systems

Once management information systems are in place, implementing them into management workflow is vital to
their effectiveness. Management needs to be aware of how to access the data, run regular reports and find help
when they need it. Visual presentations and opportunities for hands-on exploration of the systems help managers
to get used to accessing data before they need to.

Help-desk personnel could choose to host a class or webinar that walks management through every step needed
to navigate through your company's MIS. Due to the importance of MIS data in decision making, it is imperative
that management has a thorough understanding of how and when to best use the system.

Importance of Decision Making

Managers regularly make decisions that impact the daily lives of their employees, so having accurate data is
important. Changes introduced by management have the power to alter someone's life by:

 Increasing or decreasing stress levels.

 Increasing or decreasing workload.
 Increasing or decreasing ease of job performance.
 Increasing or decreasing job task understanding.
 Giving or taking away livelihood.

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The large impact of managerial decisions on the everyday lives of people as well as on the company's bottom
line means that decisions cannot be made lightly or without adequate information.

Decision-Making Processes

Many companies train their managers to make decisions using a structured decision-making process. While these
processes vary slightly from organization to organization, a basic seven-step process is common:

1. Identify the problem.

2. Gather data related to the problem.
3. Identify possible solutions to the problem.
4. Consider pros and cons of each solution.
5. Choose the solution that minimizes risks while increasing benefits.
6. Execute your plan, adjusting as needed.
7. Review the effectiveness of your plan to help inform future decisions.

Importance of MIS in Decision Making

The importance of MIS in decision making can be seen throughout the typical corporate decision-making
process. MIS reports typically alert management about problems by highlighting poor performance, lower than
expected sales, problems in efficiency and so forth.

These same reports allow managers to gather data related to the problem by looking at trends over a certain
period of time and seeing where improvements can be made. This information empowers managers to brainstorm
a wide variety of possible solutions to the given problem so that they can consider the pros and cons of each
one. This makes it possible for management to choose and execute a plan to solve the problem.

Future MIS reports should show improvement in the problem areas so that managers can accurately evaluate the
success of their given plan and make adjustments going forward.

Proactive Versus Reactive Decision Making

The importance of MIS in decision making lies in its ability to help managers become proactive versus reactive
decision makers. Without proper data, crises can build in the background and then explode, causing managers
to go into survival mode and make reactive decisions that Band-Aid the problem rather than prevent it in the
first place.

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The role of management information systems in organization leadership is to give a heads up about growth areas
before major crises emerge so that they can make proactive decisions. This results in crisis prevention so that
the company can focus on growth.

Goal Setting and MIS

Because MIS provides a plethora of information that helps with proactive decision making, it is also helpful for
goal setting and review. When your management team sets goals for the week, month, quarter or year, those can
be programmed into your management information system. Then, it is easy to track actual performance against
your goals and then either increase or decrease your goals in the future to make them more probable and make
profit margins more accurate.

For instance, if your sales team sets a goal to do $25,000 in sales this month but is only able to come up with
$15,000 in sales when working efficiently, you can try setting a different goal next month. Maybe you set a goal
for $20,000 and then run a customer special to make that more achievable and find that your team does $19,000.

You know that the following month is busy for sales, and so that month your team does $21,000 in sales and can
be reasonably certain that $20,000 is a pretty accurate prediction of team sales going forward. The information
used to set these numbers and adjust them all comes from your MIS report showing total sales and employee-
performance trends.

Limitations of MIS in Decision Making

While the role of MIS in decision making is vital to the health of most businesses, it's not without limitations.
Management information systems measure data but cannot always accurately collect information on things like
team morale, job satisfaction and other abstract dynamics at play in the workplace. Human resources specialists,
corporate psychologists and good old-fashioned relationship building can help make up for the blind spots of
MIS.

MIS & Technology

Management information system (MIS) refers to a large infrastructure used by a business or corporation, whereas
information technology (IT) is one component of that infrastructure that is used for collecting and transmitting
data. A management information system helps a business make decisions and coordinate and analyze information

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Information Systems vs Information Technology

Introduction

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

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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.

 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.

MIS & Business

Management Information Systems (MIS) and Business Process Management (BPM)

Management Information Systems (MIS) focuses on the use of Information and Communication Technologies
(ICT) in managing organisations. In today‘s highly competitive and global economy, all organisations need to
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use ICT to efficiently manage their operations, help managers make better and faster decisions to achieve
competitive advantage, and facilitate seamless communications with employees, customers, partners, and other
stakeholders. Competencies in such areas as big data analytics, cloud computing, Internet of Things and
augmented reality have become essential to survival in the rapidly changing business environment.

Organisations are under intense pressure to remain competitive, decrease costs and increase productivity by
improving business processes. Business process management (BPM) helps managers improve organisational
performance by analyzing, designing, implementing, monitoring, controlling and modifying operational business
processes. BPM may include such continuous process improvement methodologies as Lean, Total Quality
Management and Six Sigma to enhance organisational efficiency and profitability.

5 Great MIS Careers

1. Computer Systems Analyst

2. Software Developer

3. Web Developer

4. Information Security Manager

5. Technical Support Specialist

MIS Opportunities

Top Jobs for Management Information Systems Degree Majors

 10 Careers for MIS Graduates. Management Information Systems (MIS) is a broad term for the
technological systems businesses use to manage their daily operations. ...
 Computer Systems Administrator. ...
 Search Engine Optimization Specialist. ...
 Database Administrator. ...
 Information Security Analyst. ...
 App Developer. ...
 Librarian. ...
 IT Manager.
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What are the challenges of MIS?

 • MIS requires a wide variety of knowledge areas including accounting, finance, marketing and manufacturing.
Therefore...

 • Both technology and technology-related products are emerging at very high pace. Consequently no one
possibly be...

 • Many terms used in MIS are inaccurate and controversial because of high pace of new hardware, software
and...

 • MIS problems are difficult to define. Some times a situation may be seen as a problem but in fact it may be
a symbol..

Week 3

STRTEGIC MANAGEMENT

 Strategic information is used for gaining competitive advantage and formulating business strategies by
organizations. It may deliver a service or product that is at a lower price, differentiated and mainly concentrates
on a demanding market section, or which is innovative.
Concept of Strategy

A strategy is considered as a long-term plan that relates the strategic advantages of an organization to the
challenges of the environment.

It involves the determination of the long-term objectives of the organization and the adoption of courses of
action. It also involves the allocation of resources necessary to achieve the objectives.

When defined this way, objectives are considered as part of strategy formulation. According to the definition
provided by Thompson and Strickland, the strategy is the means used to achieve the ends.

Here ‗means‘ refer to ways or actions and ‗ends‘ refer to objectives. Strategy expresses the intention of
management about the way to achieve objectives of the organization.

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Internal

External

External sources of information for strategic management

1. Academic and Professional journals: from time immemorial, academic and professional journals have always
been a...

2. Business directories: this is a pool of similar businesses with brief details about them. It can be online or
offline.

3. Databases (online and offline): the world that we now live in is not in short supply of databases that perfectly
fits...

4. Customers: customers are goldmine when it comes to getting information that can be used for..

Importance Of The External Environment

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Tan Chee Teik | General





March 1, 2013

To keep the business ahead of the competition, managers must continually adjust their strategies to reflect
the environment in which their businesses operate. This article looks at how to study the political, economic,
social, and technological conditions to help in formulating strategy.

THE external environment plays a critical role in shaping the future of entire industries and those of individual
businesses. To keep the business ahead of the competition, managers must continually adjust their strategies to
reflect the environment in which their businesses operate.

It is a useful exercise to do an external analysis at the start of the strategy review process. Gather your team together
to do a PEST analysis. After the analysis, you will get an overview of the environment that your business is in, the
factors that may affect it, and the issues that require attention in the strategy.During the discussion, the leader
should fill in the factors suggested by the team regarding the political, economic, social, and technological
conditions or PEST for short. On a flip chart, draw a large square with four parts as shown in Figure 1.

Figure 1: Flip Chart for PEST Brainstorming

POLITICAL ECONOMIC

SOCIAL TECHNOLOGICAL

Under political analysis, your team may want to consider the political stability of the region, what the chances of
military action are, the legal framework for contract enforcement, trade regulations and tariffs, intellectual property
protection, who the favoured trading partners are, and related topics.

Under economic analysis, discuss the types of economic system in the countries the company operates, the amount
of government intervention in the free market, the efficiency of the financial markets, infrastructure quality, the
skill level of the workforce, labour costs, and relevant factors.

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The various central banks can lower the reserve requirements of the country‘s banks so that in difficult times, they
don‘t have to keep high deposits at hand and this leads to freeing up more money for loans to companies.

For social analysis, look into the demographics, education, class structure, culture, entrepreneurial spirit, and health
and environmental consciousness. The values and attitudes that members of a firm bring to the workplace are
derived from sources such as religion, family, and social institutions. These are attitudes towards change, success,
work, risk-taking, use of time, competition, achievement motivation, and authority.

For the technological analysis, discuss the recent technological developments, the technology‘s impact on cost,
impact on the value chain structure, and the rate of technological diffusion.

PHOTOS: SS

Many technological innovations have change the way many

industries operate. Those that are too slow to change have no choice but to fold. For example, the MP3 music
format has changed the record industry. The sale of music albums have fallen drastically while the purchase of
single songs online has proliferated. The popularity of reading E-books has affected the sales of hard copies.

The PEST analysis is merely a checklist to ensure that you have analysed the salient factors. It is a great help to
guide the group through the initial analysis. When the team gets an accurate picture at the beginning of the strategic
process, it will lead them to adopt a successful strategy.

Some scholars have put forth other specific forces that will have an impact on business organisations. They include
the stockholders, customers, the public, financial institutions, material suppliers, competitors, and labour unions.

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Week 4

Role of information in organization

A Management Information System or MIS is used by businesses to gather, compile and analyze information.
Today, an MIS is highly integrated with a company's computer systems, usually involving databases with vast
amounts of data. While the type of information used can vary from one business to another and even between
departments, the role of management information systems is almost always the same: to improve operations,
strategies and decision-making.

The Role of MIS Today

The amount of information available to any business today can be overwhelming. How this information is
managed and therefore leveraged to better decisions depends on the goals and objectives of your business. Just
as no two people use their cell phones for the same things, no two businesses use MIS in the same way. To
understand the functions of management information systems in an organization, it's best viewed at four different
levels: transactions, operations, management and strategy.

The Role of MIS in Transactions

Information management begins at the transaction level, where the information is gathered and stored. This
means deciding which information is important enough to be collected and stored. For example, if your business
sells clothes online, you would probably record customer information, including names, addresses and purchase
history. Once this information is compiled, it would give you insight into your customers' demographics and
preferences. However, if you also recorded items they searched for, items they browsed for more than a few
seconds and items they removed from their shopping carts, you would have much more information that could
tell you how you can improve your sales.

Brought to you by Techwalla

Even at the transaction level, an MIS can have a vital role in your organization. Suppose a customer calls to ask
about an item. If the customer service representative has the customer's transaction history at his or her fingertips,
he or she could more easily assist by immediately knowing the customer's name, purchase history and returns
history. Knowing if the customer is calling from New York or Los Angeles, the representative can more easily
predict how long an item will take to be shipped.

MIS in Operations and Management

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Having accurate and timely information can help all operations in a company to make better decisions and to
ensure everything runs smoothly. Knowing exactly how many orders have been placed, the production
department will know how much work they have to do today.

Information used at the operations level often goes hand-in-hand with better management decisions. For
example, if the warehouse manager knows that 500 customers have pre-ordered an item that is due to arrive on
Friday, he may decide to have a few workers come in on Saturday to reduce Monday's workload. At the same
time, the accounting department will know that there will be an influx of cash when Monday's credit-card orders
are all processed. The marketing department will be able to determine which ad campaigns were responsible for
the bulk of those orders and which should be used again.

The Role of MIS in Business Strategy

A well-optimized management information system can pay off beyond operations and management decisions.
As the owner of a small company, you can review purchases over the past year to determine which markets to
explore next. For example, suppose your retail website originally sold dresses and other garments and last year
you began offering shoes at a good profit margin. Today, however, dresses account for very few sales and a high
percentage of returns. Sales of shoes have been steadily increasing. At the same time, your web developers have
pointed out that "handbags" and "belts" are now the most popular search items on your website. Based on this
information, you have the information you need to phase out dresses and begin offering these sought-after
accessories to your customers.

MANAGEMENT

Purpose of a Management Information System

How to Use a Management Information System

A Management Information System, or MIS, collects data from many different sources and then processes and
organizes that data to help businesses make decisions. These days, technology and data collection are so
prevalent that businesses large and small are using Management Information Systems to improve their outcomes.
A good MIS can give your business a competitive advantage because it turns thousands of data points into
helpful, usable information that can be used to tweak your strategy and increase profits.

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TL;DR (Too Long; Didn't Read)

A Management Information System collects all of business data from various sources, processes and organizes
it.

How a Management Information System Works

The term Management Information System sounds complicated, but actually the concept is quite simple when
you break it down. A business collects many different types of data. For example, a clothing retailer tracks
inventory, manufacturing, personnel, online and in-store sales and marketing, just to name a few. An MIS
collects all of this data from various sources, processes and organizes it. Next, the MIS takes all of this processed
data and generates a user-friendly report that management can consult while making decisions. Using the
clothing retailer example, a manager might look at an MIS report and learn that on Wednesdays, in-store business
is slow and, therefore, the store is overstaffed. The manager can now make the decision to cut back employee
hours on Wednesdays, keeping in line with demand. Ultimately, utilizing this data will help maximize profits
and ensure that business operations are running smoothly.

It‘s important to note that Management Information Systems don‘t have to be massive networks. A sole
proprietor using just one computer could set up an MIS. One example of this would be a doctor who uses an
MIS to track scheduling, wait times, patient data, billing, dealings with insurance companies and accounting.
Or, a freelancer might use an MIS to track their hours, invoicing, clients, marketing efforts and sales.

However, management must have the confidence that the data in an MIS is valid in order to make effective
decisions. If employees are not doing a good job at capturing the correct data, then management will be
unknowingly making decisions based on flawed information.

Types of Business Decisions

An MIS can be used to aid in the planning of many different functions of a business, such as marketing, logistics,
personnel, finance and accounting, information planning and upper management. Using marketing as an
example, an MIS helps forecast sales and analyzes the behaviors of customers. A report might reveal that your
potential customers are spending time shopping on your website, only to abandon their carts when they encounter
the checkout process. Now, you can tweak your checkout process or offer your customers other incentives for
completing their purchases, thus increasing sales. Some retail companies will go so far as to email customers
who have abandoned their carts and offer promotional codes. You can bet that these savvy companies are doing
so because their data showed that far too many customers were abandoning full carts, and this tactic works to
reel them back in.

Benefits to MIS
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Using a Management Information System is beneficial because it provides data for both the big and small picture
on operations, management, strategy and transactions. Knowledge is power. Understanding your business‘ data
helps you plan for operations and resource allocation in an organized and systematic way. With the rapid
development of technology and data systems, businesses that stay one step ahead remain competitive. A good
MIS helps businesses make small, incremental changes that can add up to large outcomes.

Six Major Types of Information Systems

A typical organization has six of information systems with each supporting a specific organizational level. These
systems include transaction processing systems (TPS) at the operational level, office automation systems (OAS)
and knowledge work systems (KWS) at the knowledge level, management information systems (MIS) and decision
support Systems (DSS) at the management level, and the executive support systems (ESS)at the strategic level.

Contents [show]

Transaction Processing Systems

Every firm needs to process transactions in order to perform their daily business operations. A transaction refers
to any event or activity that affects the organization. Depending on the organization‘s business, transactions may
differ from one organization to another. In a manufacturing unit, for example, transactions include order entry,
receipt of goods, shipping, etc., while in a bank, transactions include deposits and withdrawals, cashing of cheques
etc.

Is Drinking Too Much Coffee Bad for Your Health?

However, some transactions, including placing orders, billing customers, hiring employees, employee record
keeping, etc., are common to all organizations. To support the processing of business transactions, the transaction
processing systems (TPS) are used in the organizations.

Office Automation Systems

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An office automation system (OAS) is a collection of communication technology, computers and persons to
perform official tasks. It executes office transactions and supports official activities at every organizational level.
These activities can be divided into clerical and managerial activities.

Clerical activities performed with the help of office automation system include preparing written communication,
typesetting, printing, mailing, scheduling meetings, calendar keeping.etc. Under managerial activities, office
automation system helps in conferencing, creating reports and messages, and controlling performance
of organization. Many applications like word processing, electronic filing and e-mail are integrated in office
automation system.

Word Processing
Word processing is used for the preparation of documents like letters, reports, memos, or any type of printable
material by electronic means. The text is entered by keyboard and displayed on the computer‘s display unit. This
text can be edited, stored, and reproduced with the help of commands present in the word processor. Word
processors have facilities for spell checking, grammar checking, counting (character,lines, pages, etc.), automatic
page numbering, index creation, header and footer,etc.

READ Advantages and Disadvantages of Bureaucracy

Email
E-mail or electronic mail facilitates the transfer of messages or documents with the help of computer and
communication lines. This helps in speedy delivery of mails and also reduces time and cost of sending a paper
mail. E-mail supports not only the transfer of text messages but it also has options for sending images,audio, video,
and many other types of data.

Voice Mail
Voice mail, an important call service, allows recording and storing of telephone messages into the computer‘s
memory. The intended person can retrieve these messages any time.

Knowledge Work Systems

A knowledge work system (KWS) is a specialized system built to promote the creation of knowledge and to make
sure that knowledge and technical skills are proper integrated into business. It helps the knowledge workers in
creating and propagating new information and knowledge by providing them the graphics, analytical,
communications, and document management tools.

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The knowledge workers also need to search for knowledge outside the organization. Thus, knowledge work system
must give easy access to external databases. In addition, knowledge work systems should have user-friendly
interface to help users to get the required information quickly and easily.

Some examples of knowledge work systems are computer-aided design (CAD)systems, virtual reality systems,
and financial workstations.

Computer-aided design (CAD) systems: These systems are used for automating the creation and revision of
designs using computers and graphics software. The CAD software has the capability to provide design
specifications for tooling and manufacturing process. This saves much time and money while making a
manufacturing process.
Virtual Reality System: These systems have more capabilities than CAD systems for visualization, rendering and
simulation. They make use of interactive graphics software to build computer-generated simulations which almost
look like real. They can be used in educational, scientific and business work.
Financial Workstations: They are used to combine a wide range of data from internal as well as external sources.
This data includes contact management data, market data and research reports. Financial workstations help in
analyzing trading situations and large amount of financial data within no time. It is also used for portfolio
management.

Management Information Systems

Management information systems are especially developed to support planning, controlling, and decision-making
functions of middle managers. A management information system (MIS) extracts transaction data from underlying
TPSs, compiles them, and produces information products in the form of reports, displays or responses.

READ Strategic Management - Meaning, Features and Important Concepts

These information products provide information that conforms to decision-making needs of managers and
supervisors. Management information systems use simple routines like summaries and comparisons which enable
managers to take decisions for which the procedure of reaching at a solution has been specified in advance.

Generally, the format of reports produced by MIS is pre-specified. A typical MIS report is a summary report, such
as a report on the quarterly sales made by each sales representative of the organization. Another type of
management information system report is an; for example, exception report that specifies the exception conditions
the sales made by some sales representative is far below than expected.

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Usually, management information systems are used to produce reports on monthly, quarterly, or yearly basis.
However, if managers want to view the daily or hourly data, MIS enables them to do so. In addition, they provide
managers online access to the current performance as well as past records of the organization.

Decision Support Systems

A decision support system (DSS) is an interactive computer-based information system that, like MIS, also serves
at the management level of an organization. However, in contrast to MIS, it processes information to support
the decision making process of managers. It provides middle managers with the information that enables them to
make intelligent decisions. A decision support system in a bank, for example, enable a manager to analyze the
changing trends in deposits and loans in order to ascertain the yearly targets.

Decision support systems are designed for every manager to execute a specific managerial task or problem.
Generally, they help managers to make semi-structured decisions, the solution to which can be arrived at logically.
However, sometimes, they can also help in taking complex decisions. To support such decisions, they use
information generated by OASs and TPSs.

Decision support systems have more analytical power as compared to other information systems. They employ a
wide variety of decision models to analyze data or summarize vast amount of data into a form (usually form of
tables or charts) that make the comparison and analysis of data easier for managers. They provide interactive
environment so that the users could work with them directly, add or change data as per their requirements, and ask
new questions.

READ Components of Decision Support Systems (DSS)

Executive Support Systems

An executive support system (ESS) – an extension of MIS – is a computer based information system that helps ind
decision making at the top-level of an organization. The decisions taken with the help of executive support system
are non-routine decisions that effect the entire organization and, thus, require judgement and sight.

As compared to DSSs, ESSs offer more general computing capabilities, better telecommunications and efficient
display options. They use the advanced graphics software to display the critical information in the form of charts
or graphs that help senior executives to solve a wide range of problems. To make effective decisions, they use
summarized internal data from MIS and DSS as well as data from external sources about events like new tax laws,

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new competitors, etc. They filter, compress, and track data of high importance and make it available to the strategic-
level managers.

Executive support systems help to monitor performance, track activities of competitors, identify opportunities, and
forecast trends. They also assist senior managers in answering the following question:

• What business should we do?

• How are our competitors doing the business?

• Which units can be sold and which new units are to be bought?

Supporting Business Functions in an Enterprise with Information

The principal business functions in a business firm are:

1. Marketing and sales

2. Production

3. Accounting and finance

4. Human resources

Figure 12.1: Outlines a general view of information systems supporting a company's operations and
management. Emphasize that management support systems (MRS), decision support systems (DSS), and
executive information systems (EIS), rest on the foundation of transaction processing systems (TPS) that support
business operations. TPSs are the major source of data used by the higher-level systems to derive information.
Professional support systems (PSS) and office information systems (OIS), which support individual and group
knowledge work, are also a part of this foundation.

12.2 Marketing Information Systems [Figure 12.2 & Figure 12.3]

Marketing activities are directed toward planning, promoting, and selling goods and services to satisfy the needs
of customers and the objectives of the organization.

Marketing information systems support decision making regarding the marketing mix. These include:

1. Product

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2. Price

3. Place

4. Promotion

Figure 12.3 illustrates the structure of the entire marketing information system. In order to support decision
making on the marketing mix, a marketing information system draws on several sources of data and information.

Sources of Data and Information for Marketing: Boundary-Spanning and Transaction Processing
Subsystems

A marketing information system relies on external information to a far greater degree than other organizational
information systems. It includes two subsystems designed for boundary spanning - bringing into the firm data
and information about the marketplace.

The objective of marketing research is to collect data on the actual customers and the potential customers,
known as prospects. The identification of the needs of the customer is a fundamental starting point for total
quality management (TQM). Electronic commerce on the WEB makes it easy to compile statistics on actual
buyer behaviour.

Marketing research software supports statistical analysis of data. It enables the firm to correlate buyer behaviour
with very detailed geographic variables, demographic variables, and psychographic variables.

Marketing (competitive) intelligence is responsible for the gathering and interpretation of data regarding the
firm's competitors, and for the dissemination of the competitive information to the appropriate users. Most of the
competitor information comes from corporate annual reports, media-tracking services, and from reports
purchased from external providers, including on-line database services. The Internet has become a major source
of competitive intelligence.

Marketing Mix Subsystems

The marketing mix subsystems support decision making regarding product introduction, pricing, promotion
(advertising and personal selling), and distribution. These decisions are integrated into the sales forecast and
marketing plans against which the ongoing sales results are compared.

Marketing mix subsystems include:

1. Product subsystem

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2. Place subsystem

3. Promotion subsystem

4. Price subsystem

5. Sales forecasting

Product Subsystem

The product subsystem helps to plan the introduction of new products. Continually bringing new products to
market is vital in today's competitive environment of rapid change. The product subsystem should support
balancing the degree of risk in the overall new-product portfolio, with more aggressive competitors assuming
higher degrees of risk for a potentially higher payoff.

Although decisions regarding the introduction of new products are unstructured, information systems support
this process in several ways:

1. Professional support systems assist designers in their knowledge work

2. DSSs are used to evaluate proposed new products

3. With a DSS, a marketing manager can score the desirability of a new product.

4. Electronic meeting systems help bring the expertise of people dispersed in space and time to bear on the
problem

5. Information derived from marketing intelligence and research is vital in evaluating new product ideas.

Place Subsystem

The place subsystem assists the decision makers in making the product available to the customer at the right
place at the right time. The place subsystem helps plan the distribution channels for the product and track their
performance.

The use of information technology has dramatically increased the availability of information on product
movement in the distribution channel. Examples include:

1. Bar-coded Universal Product Code (UPC)

2. Point-of-sale (POS) scanning

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3. Electronic data interchange (EDI)

4. Supports just-in-time product delivery and customized delivery

Promotion Subsystem

The promotion subsystem is often the most elaborate in the marketing information system, since it supports both
personal selling and advertising. Media selection packages assist in selecting a mix of avenues to persuade the
potential purchaser, including direct mail, television, print media, and the electronic media such as the Internet
and the WEB in particular. The effectiveness of the selected media mix is monitored and its composition is
continually adjusted.

Database marketing relies on the accumulation and use of extensive databases to segment potential customers
and reach tem with personalized promotional information.

The role of telemarketing, marketing over the telephone, has increased. Telemarketing calls are well supported
by information technology.

Sales management is thoroughly supported with information technology. Customer profitability analysis help
identify high-profit and high-growth customers and target marketing efforts in order to retain and develop these
accounts.

Sales force automation, involves equipping salespeople with portable computers tied into the corporate
information systems. This gives the salespeople instantaneous access to information and frees them from the
reporting paperwork. This increases selling time and the level of performance. Access to corporate databases is
sometimes accompanied by access to corporate expertise, either by being able to contact the experts or by using
expert systems that help specify the product meeting customer requirements.

Price Subsystem

Pricing decisions find a degree of support from DSSs and access to databases that contain industry prices. These
highly unstructured decisions are made in pursuit of the companys pricing objectives. General strategies range
from profit maximization to forgoing a part of the profit in order to increase a market share.

Information systems provide an opportunity to finely segment customer groups, and charge different prices
depending on the combination of products and services provided, as well as the circumstances of the sale
transaction.

Sales Forecasting

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Based on the planned marketing mix and outstanding orders, sales are forecast and a full marketing plan is
developed. Sale forecasting is an area where any quantitative methods employed must be tempered with human
insight and experience. The actual sales will depend to a large degree on the dynamics of the environment.

Qualitative techniques are generally used for environmental forecasting - an attempt to predict the social,
economic, legal, and technological environment in which the company will try to realize its plans. Sales
forecasting uses numerous techniques, which include:

1. Group decision making techniques are used to elicit broad expert opinion

2. Scenario analysis in which each scenario in this process is a plausible future environment

3. Extrapolation of trends and cycles through a time-series analysis.

12.3 Manufacturing Information Systems

Global competitive pressures of the information society have been highly pronounced in manufacturing and have
radically changed it. The new marketplace calls for manufacturing that are:

1. Lean - highly efficient, using fewer input resources in production through better engineering and through
production processes that rely on low inventories and result in less waste.

2. Agile - fit for time-based competition. Both the new product design and order fulfilment are drastically
shortened.

3. Flexible - able to adjust the product to a customer's preferences rapidly and cost effectively.

4. Managed for quality - by measuring quality throughout the production process and following world standards,
manufacturers treat quality as a necessity and not a high-price option.

Structure of Manufacturing Information Systems [Figure 12.5]

Information technology must play a vital role in the design and manufacturing processes. Manufacturing
information systems are among the most difficult both to develop and to implement.

TPSs are embedded in the production process or in other company processes. The data provided by the
transaction processing systems are used by management support subsystems, which are tightly integrated and
interdependent.

Manufacturing information subsystems include:

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1. Product design and engineering

2. Product scheduling

3. Quality control

4. Facilities planning, production costing, logistics and inventory subsystems

Product Design and Engineering

Product design and engineering are widely supported today by computer-aided design (CAD) and computer-
aided engineering (CAE) systems. CAD systems assist the designer with automatic calculations and display of
surfaces while storing the design information in databases. The produced designs are subject to processing with
CAE systems to ensure their quality, safety, manufacturability, and cost-effectiveness. CAD/CAE systems
increasingly eliminate paperwork from the design process, while speeding up the process itself. As well, the
combined techniques of CAD/CAE and rapid prototyping cut time to market.

Product Scheduling

Production scheduling is the heart of the manufacturing information system. This complex subsystem has to
ensure that an appropriate combination of human, machinery, and material resources will be provided at an
appropriate time in order to manufacture the goods.

Production scheduling and the ancillary processes are today frequently controlled with a manufacturing
resource planning system as the main informational tool. This elaborate software converts the sales forecast for
the plants products into a detailed production plan and further into a master schedule of production.

Computer integrated manufacturing (CIM) is a strategy through which a manufacturer takes control of the
entire manufacturing process. The process starts with CAD and CAE and continues on the factory floor where
robots and numerically controlled machinery are installed - and thus computer-aided manufacturing (CAM) is
implemented. A manufacturing system based on this concept can turn out very small batches of a particular
product as cost-effectively as a traditional production line can turn out millions of identical products. A full-
fledged CIM is extremely difficult to implement; indeed, many firms have failed in their attempts to do so.

Quality Control

The quality control subsystem of a manufacturing information system relies on the data collected on the shop
floor by the sensors embedded in the process control systems.

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Total quality management (TQM) is a management technique for continuously improving the performance of
all members and units of a firm to ensure customer satisfaction. In particular, the principles of TQM state that
quality comes from improving the design and manufacturing process, rather than Ainspecting out@ defective
products. The foundation of quality is also understanding and reducing variation in the overall manufacturing
process.

Facilities Planning, Production Costing, Logistics and Inventory Subsystems

Among the higher-level decision making supported by manufacturing information systems are facilities planning
- locating the sites for manufacturing plants, deciding on their production capacities, and laying out the plant
floors.

Manufacturing management requires a cost control program, relying on the information systems. Among the
informational outputs of the production costing subsystem are labor and equipment productivity reports,
performance of plants as cost centers, and schedules for equipment maintenance and replacement.

Managing the raw-materials, packaging, and the work in progress inventory is a responsibility of the
manufacturing function. In some cases, inventory management is combined with the general logistics systems,
which plan and control the arrival of purchased goods into the firm as well as shipments to the customers.

12.4 Accounting and Financial Information Systems [Figure 12.9]

The financial function of the enterprise consists in taking stock of the flows of money and other assets into and
out of an organization, ensuring that its available resources are properly used and that the organization is
financially fit. The components of the accounting system include:

1. Accounts receivable records

2. Accounts payable records

3. Payroll records

4. Inventory control records

5. General ledgers

Financial information systems rely on external sources, such as on-line databases and custom produced reports,
particularly in the areas of financial forecasting and funds management. The essential functions that financial
information systems perform include:

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1. Financial forecasting and planning

2. Financial control

3. Funds management

4. Internal auditing

Financial Forecasting

Financial forecasting is the process of predicting the inflows of funds into the company and the outflows of funds
from it for a long term into the future. Outflows of funds must be balanced over the long term with the inflows.
With the globalization of business, the function of financial forecasting has become more complex, since the
activities in multiple national markets have to be consolidated, taking into consideration the vagaries of multiple
national currencies. Scenario analysis is frequently employed in order to prepare the firm for various
contingencies.

Financial forecasts are based on computerized models known as cash-flow models. They range from rather
simple spreadsheet templates to sophisticated models developed for the given industry and customized for the
firm or, in the case of large corporations to specify modeling of their financial operations. Financial forecasting
serves to identify the need for funds and their sources.

Financial Control

The primary tools of financial control are budgets. A budget specifies the resources committed to a plan for a
given project or time period. Fixed budgets are independent of the level of activity of the unit for which the
budget is drawn up. Flexible budgets commit resources depending on the level of activity.

Spreadsheet programs are the main budgeting tools. Spreadsheets are the personal productivity tools in use today
in budget preparation.

In the systems-theoretic view, budgets serve as the standard against which managers can compare the actual
results by using information systems. Performance reports are used to monitor budgets of various managerial
levels. A performance report states the actual financial results achieved by the unit and compares them with the
planned results.

Along with budgets and performance reports, financial control employs a number of financial ratios indicating
the performance of the business unit. A widely employed financial ratio is return on investment (ROI). ROS
shows how well a business unit uses its resources. Its value is obtained by dividing the earnings of the business
unit by its total assets.
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Funds Management

Financial information systems help to manage the organization's liquid assets, such as cash or securities, for high
yields with the lowest degree of loss risk. Some firms deploy computerized systems to manage their securities
portfolios and automatically generate buy or sell orders.

Internal Auditing

The audit function provides an independent appraisal of an organization's accounting, financial, and operational
procedures and information. All large firms have internal auditors, answerable only to the audit committee of
the board of directors. The staff of the chief financial officer of the company performs financial and operational
audits. During a financial audit, an appraisal is made of the reliability and integrity of the company's financial
information and of the means used to process it. An operational audit is an appraisal of how well management
utilizes company resources and how well corporate plans are being carried out.

12.5 Human Resource Information Systems

A human resource information system (HRIS) supports the human resources function of an organization with
information. The name of this function reflects the recognition that people who work in a firm are frequently its
most valuable resources. The complexity of human resource management has grown immensely over recent
years, primary due to the need to conform with new laws and regulations.

A HRIS has to ensure the appropriate degree of access to a great variety of internal stakeholders, including:

1. The employees of the Human Resources department in performance of their duties

2. All the employees of the firm wishing ti inspect their own records

3. All the employees of the firm seeking information regarding open positions or available benefit plans

4. Employees availing themselves of the computer-assisted training and evaluation opportunities

5. Managers throughout the firm in the process of evaluating their subordinates and making personnel decisions

6. Corporate executives involved in tactical and strategic planning and control

Transaction Processing Subsystems and Databases of Human Resource Information Systems

At the heart of HRIS are its databases, which are in some cases integrated into a single human resource database.
The record of each employee in a sophisticated employee database may contain 150 to 200 data items, including
the personal data, educational history and skills, occupational background, and the history of occupied positions,
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salary, and performance in the firm. Richer multimedia databases are not assembled by some firms in order to
facilitate fast formation of compatible teams of people with complementary skills.

Other HRIS databases include:

1. Applicant databases

2. Position inventory

3. Skills inventory

4. Benefit databases

5. External databases

Information Subsystems for Human Resource Management

The information subsystems of HRIS reflect the flow of human resources through the firm, from planning and
recruitment to termination. A sophisticated HRIS includes the following subsystems:

1. Human resource planning

2. Recruiting and workforce management

3. Compensation and benefits

4. Government reporting and labour relations support

Human Resource Planning

To identify the human resources necessary to accomplish the long-term objectives of a firm, we need to project
the skills, knowledge, and experience of the future employees.

Recruiting and Workforce Management

Based on the long-term resource plan, a recruitment plan is developed. The plan lists the currently unfilled
positions and those expected to become vacant due to turnover.

The life-cycle transitions of the firm's workforce - hiring, promotion and transfer, and termination - have to be
supported with the appropriate information system components.

Compensation and Benefits

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Two principal external stakeholders have an abiding interest in the human resource policies of organizations.
These are:

1. Various levels of government

2. Labor unions

12.6 Integrating Functional Systems for Superior Organizational Performance

Functional information systems rarely stand alone. This reflects the fact that the functions they support should, as
much as possible, connect with each other seamlessly in order to serve the firms customers. Customers expect
timely order delivery, often on a just-in-time schedule; quality inspection to their own standards; flexible credit
terms; post-delivery service; and often, participation in the product design process.

Information technology provides vital support for integrating internal business processes, cutting across
functional lines, and for integrating operations with the firm's business partners, its customers and suppliers.

Relationship Between Information Systems And Business Processes

in today‘s business. We also had chance to delve into what really can IT does to empower
the business processes. Additionally, in our opinions, these articles also illustrate very well how IT initiates,
facilicates, and enables business processes by using many examples. It makes these technical texts much easier to
understand and to digest. Here is the summary of Article 2 and 3 (we couldn‘t get in touch with the member who
is responsible for Article 1) 1. Article 2 – Information Technology...

The Business Value of Information Systems Introduction Business information management is essential to
organisations in order to support strategic decisions. Information adds value to organisations as it allows improving
products and services, reducing business costs and developing new innovations

Business value of IS

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· Information systems are used in order to manage business information in such a way that allows organisations to
increase profitability, to improve productivity and to gain other intangible benefits with the objective of achieving
sustainable competitive advantage and company success.

Business Value of Information in Management Information Systems

By Dinesh Thakur

From a managerial context the value of information is judged on the basis of the following parameters:

We’ll be covering the following topics in this tutorial:

 Timeliness
 Presentation
 Accuracy
 Context
 Expectation
Timeliness

Information is only valuable to management when it can result in some timely intervention/decision. The time
aspect of decision is very vital for any value to be attributed to it in management. Information of an event will
only be valuable to managers if they have time to react to it. If the reaction time is not there then the information
loses its managerial value.

Presentation
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Managerial information is valuable when presented in a way that facilitates decision-making. Information should
not only be given but presented in such a way that the decision-making aspect becomes obvious.

Accuracy

Any information to management is valueless unless accurate.

Context

Information for management is highly contextual. Information is valuable to a manger only if it has a decision-
making connotation to it. For example, for a finance manager any information about the competitor‘s product is
valueless.

Expectation

Information is generally more valuable to management when the information breaks an expected view or an
expected result or an expected‘ reaction. Any information that is unexpected carries a higher value. For example,
if a manager has made a marketing strategy expecting his competitor to launch a product A and before the launch
he gets information that the product to be launched by his competitor is not product A but product S, then this
information has got greater value for him as it is contrary to his expectation.

Week 5

Enhancing Management Decision Making

A decision support system (DSS) is an information system that aids a business in decision-making activities that
require judgment, determination, and a sequence of actions. The information system assists the mid- and high-
level management of an organization by analyzing huge volumes of unstructured data and accumulating
information that can help to solve problems and help in decision-making.

Types

Decision Support Systems (DSS)

A decision support system is an interactive computer-based system that serves the decision making needs of
managers. It provides managers with information that enables them to make both semi-structured and unstructured
decisions. A DSS employs various analytical models to perform a low-level analysis of data and produce
information.

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Just Be You Online, And You'll Be Happier Offline

A manager can apply his knowledge to the system generated information and get a more clear view of the problem.
The use of decision support systems usually increases the manager‘s ability to make correct and balanced
decisions.

A Decision support system possesses an interactive interface that makes it easier to use and provides real-time
response to user queries. The use of various DSS tools helps in each stage of the decision making process that
includes viewing a complex problem, designing the model to analyze the problem, developing alternatives to get
a solution, and choosing a solution from the available alternatives. While the use of DSS often increases with
the level of management, they are used at all levels and most often the users are also from the non-managerial
staff.

Contents [show]

Types of Decision Support Systems

The decision support systems can be broadly classified into two types, namely model-based DSS and data-based
DSS.

1. Model-Based DSS
These systems are standalone systems and they are not connected with other major corporate information systems.
The capability of analysis of these systems is supported by some strong theory (or model) along with a good user
interface that makes them easy to use.

READ Factors Affecting Decision-Making

The use of various models in these systems helps them to perform what-if and other similar analyses. They are
used for creating simulation models, performing production planning and scheduling, and creating statistical and
financial reports.

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2. Data-Based DSS
These systems can analyze huge amounts of data from different sources, such as organizational data, data from
enterprise systems, and data from the web. The data collected from different sources is stored in data warehouses.
A data warehouse is a database that can store present and past data extracted from various operational systems,
and provide certain reporting and query tools.

Using these systems, managers are able to extract information from a large pool of data that otherwise would have
remained hidden and unused. The extracted information helps managers in making better decisions. Note that the
corporate information systems are a major class of systems that use data-based decision support systems. The main
techniques that are mostly used in data-based DSS for analyzing the data are online analytical processing (OLAP)
and data mining.

o Online Analytical Processing (OLAP): It is based on queries and can provide fast answers to complex business
requests. It enables managers and analysts to interactively examine and manipulate the data available in the data
warehouse from different viewpoints.
o Data Mining: It helps in extracting useful information by finding patterns or rules from existing data. This
information is then used to predict future trends and behaviors.

Components of decision support systems

Components of a Decision Support System

The three main components of a DSS framework are:

1. Model Management System

The model management system S=stores models that managers can use in their decision-making. The models are
used in decision-making regarding the financial health of the organization and forecasting demand for a good or
service.

2. User Interface

The user interface includes tools that help the end-user of a DSS to navigate through the system.

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3. Knowledge Base

The knowledge base includes information from internal sources (information collected in a transaction process
system) and external sources (newspapers and online databases).

2nd
Types of Decision Support Systems

 Communication-driven: Allows companies to support tasks that require more than one person to work on
the task. It includes integrated tools such as Microsoft SharePoint Workspace and Google Docs.
 Model-driven: Allows access to and the management of financial, organizational, and statistical models.
Data is collected, and parameters are determined using the information provided by users. The information
is created into a decision-making model to analyze situations. An example of a model-driven DSS is
Dicodess – an open-source model-driven DSS.
 Knowledge-driven: Provides factual and specialized solutions to situations by using stored facts,
procedures, rules, or interactive decision-making structures like flowcharts.
 Document-driven: Manages unstructured information in different electronic formats.
 Data-driven: Helps companies to store and analyze internal and external data.
Components of group decision support systems

 A group decision support system (GDSS) is composed of 3 main components, namely hardware, software tools,
and people. Hardware: It includes electronic hardware like the computer, equipment used for networking,
electronic display boards and audiovisual equipment.

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Re

There are four defining characteristics of decision support systems that separates them in the world of software.
Namely, these types of systems turn data into decisions.

The core purpose of a decision support system is to provide useful information for making a decision. That is, the
system collects relevant information from the world, analyses it and then presents it to the decision maker. In this
way, the system tells the user something new about their world that they would not otherwise have known. The
four characteristics of decision support describe how this type of software collects and presents data in an insightful
way.

Four characteristics of decision support

Data is at the heart of every decision support system: every time, without exception. Data, data, data! Through
these four characteristics of decision support, you can turn your data into decisions.

One: Data collection

The first of the four characteristics of decision support is that the system must collect data. A familiar example of
a decision support system is daily weather report. This is a system that collects information about the temperature
throughout the world. There use a range of devices to collect measurements, such as the temperature. These gauges
become part of a massive decision support system that is useful for any person interested in the heat of the day. If
a decision support system is to be useful, it must first collect data that is relevant to your decision.

Two: Data Management

Once you have the data, you have to manage it. First and foremost, that means somewhere to store it. For example,
all of the measures of a temperature gauge needs to be stored so that it can be analysed. This usually means some
kind of database or data log. A system that provides decision support, also has a way to manage the data that it
collects.

Three: Data Analysis

The third of the characteristics of decision support system is when data becomes insight. By itself, raw data is
rarely useful. Rather, it must crunched to meet the needs of the people who may benefit from it. However, with
some high quality analysis, that data may become essential for making big decisions. This can be the difference

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between helping a farmer plan the next day‘s harvest or a pilot flying an airliner at 38,000 feet. Same source data,
but very different types of analysis. Therefore, analysis makes a world of difference when it comes to decision
support.

Four: Data Presentation

Data presentation is all about how you deliver your information to people. It is the interface and interaction between
data and user. This is the user interface, look and feel, column graph or pie chart.

How a system present information can make all the difference as to how useful a decision support system is. As
with temperate, you can represent today‘s maximum using a sun or snowflake icon. In this way, you immediately
know what the day is going to be like. This example, is decision support at it‘s best because it is relevant, timely
and useful!

Relevant and useful information

To sum up, a decision support system is a computer-based information technology with four characteristics:

1. data collection;
2. storage of data;
3. analysis of data; and
4. data presentation.

The characteristics enable a system to deliver relevant and useful information for making decisions. Together, they
enable people to turn data into decisions.
Tags:Decision Support System

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Week 6

Traditional systems vs information systems

Not found

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 System development is done in stages which include: Problem recognition and specification Information gathering
Requirements specification for the new system System design System construction System implementation
Review and maintenance.
 A traditional economy is a system that relies on customs, history, and time-honored beliefs. Tradition
guides economic decisions such as production and distribution. Societies with traditional economies
depend on agriculture, fishing, hunting, gathering, or some combination of them. They use barter instead
of money.

Impact of information systems vulnerability

Vulnerability exists in all levels and links of the information network. Once used by malicious actors, it will affect
the normal operation of the information system and its services, and may affect the reliable operation of the
information network through the CPS business, resulting in huge losses,

Information Technology Threats and Vulnerabilities

Audience: anyone requesting, conducting or participating in an IT risk assessment.

Introduction

A threat and a vulnerability are not one and the same. A threat is a person or event that has the potential for
impacting a valuable resource in a negative manner. A vulnerability is that quality of a resource or its environment
that allows the threat to be realized. An armed bank robber is an example of a threat. A bank teller is an example
of a valuable resource that may be vulnerable during a bank robbery. Bullet-proof glass between the robber and
the teller denies the robber the opportunity to shoot the teller. The threat remains present, but one of its harmful
effects (a gun shot) has been mitigated by a protection mechanism (the glass).

In system and network security, the threats remain present but are mitigated through the proper use of security
features and procedures. Mitigation is any effort to prevent the threat from having a negative impact, or to limit
the damage where total prevention is not possible, or to improve the speed or effectiveness of the recovery effort.

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Hardware and software systems and the data they process can be vulnerable to a wide variety of threats. The
selection of security features and procedures must be based not only on general security objectives but also on the
specific vulnerabilities of the system in question in light of the threats to which the system is exposed. It is possible
to over-protect, which only wastes resources and inconveniences users.

As you can see, there is a relationship between threats and vulnerabilities. Sometimes it is easier to examine each
potential threat and determine the extent to which you are vulnerable (e.g. fire, flood, earthquake). In other cases
it is easier to look for potential vulnerabilities with no particular threat in mind (e.g. improper mounting of
equipment, media failure, data entry error). In order to arrive at a complete risk assessment, both perspectives must
be examined. Threats and vulnerabilities are intermixed in the following list and can be referred to collectively as
potential "security concerns."

For ease of discussion and use, concerns can be divided into four categories. Environmental concerns include
undesirable site-specific chance occurrences such as lightning, dust and sprinkler activation. Physical concerns
include undesirable site-specific personnel actions, either intentional or unintentional, such as theft, vandalism and
trip hazards. Site-Support concerns include foundational site aspects such as electrical power, telephone service
and climate control. These three categories of concerns are generally not resolvable as part of system design and
administration - they are more appropriately addressed as part of facility design and maintenance, thereby
encompassing all systems present.

The final category, Technical concerns, includes insidious system-specific situations such as improper system
operation, malicious software and line tapping. The actual threats are few: untrained and nefarious users and system
calamities. It is far more useful to explore the many avenues (vulnerabilities) open to these users and events, and
to consider ways to prevent these occurrences and/or provide for rapid recovery.

The following list is meant to be used as a starting point in any IT risk assessment. Each potential concern must be
evaluated for a particular site or system to determine the extent to which it applies. The probability of its
occurrence, coupled with the projected impact of the event and the cost of the appropriate mitigation yields a
prioritized list of security concerns that should be addressed.

Environmental (undesirable site-specific chance occurrences)

 Fire
 Flood
 Tsunami
 Earthquake
 Volcanic Eruptions
 Lightning

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 Severe Weather
 Smoke
 Dust
 Insects
 Rodents
 Chemical Fumes
 Sprinkler Activation
 Water Leakage - pipe breakage, hole in roof, condensation
 Explosion - nearby gas line, chemical plant, tank farm, munitions depot
 Vibration - nearby railroad track, jet traffic, construction site
 Electromagnetic Interference - suggested by poor radio reception or jittery workstation displays
 Electrostatic Discharge - suggested by "sparking" to grounded objects

Physical (undesirable site-specific personnel actions)

 Unauthorized Facility Access

 Theft
 Vandalism
 Sabotage
 Extortion
 Terrorism / Bomb Threat
 Labor Unrest - employees and support contractors
 War / Civil Unrest
 Improper Transportation - equipment dropped, submerged, exposed to weather or X-rayed in transit
 Improper Mounting/Storage - equipment exposed to bumps, kicks or weather
 Spillage / Droppage - hazardous materials permitted near equipment (e.g. food, liquids)
 Magnets / Magnetic Tools - can erase data or damage sensitive equipment
 Collision - fork lift, auto, plane, wheelchair
 Trip Hazards / Falls - equipment poses personnel hazards
 Fire Hazards - flammable materials stored nearby

Site-Support (foundational site aspects)

 Power Outage
 Extreme / Unstable Temperatures
 Extreme / Unstable Humidity
 Unsafe Environment - unfit for human occupation

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 Facility Inaccessibility - blocked ingress

 Inability to Cut Power - during fire, flood, etc.
 Electrical Noise / Bad Ground - suggested by flickering lights or jittery workstation displays
 Improper Maintenance - unqualified support or preventive maintenance behind schedule
 Personnel Unavailability - inability to contact operations or support personnel
 Telephone Failure - inability to contact site from outside, inability to call out, service completely
unavailable
 Inappropriate Fire Suppression - water, foam, PKP, Halon
 Inappropriate Trash Disposal - sensitive data released in an unauthorized manner

Technical (insidious system-specific situations)

 Improper / Inadequate Procedure - foreseeable events not supported by complete and accurate
documentation and training
 Improper Operation - operating equipment beyond capacity or outside of manufacturer's constraints
 Improper Hardware Configuration - prescribed hardware configured in other than the prescribed manner
during installation
 Improper Software Configuration - prescribed software configured in other than the prescribed manner
during installation
 Unauthorized Hardware / Modification - adding other-than-prescribed hardware or making unauthorized
hardware modifications
 Unauthorized Software / Modification - adding other-than-prescribed software or making unauthorized
software modifications
 Unauthorized Software Duplication - creating copies of licensed software that are not covered by a valid
license
 Unauthorized Logical Access - acquiring the use of a system for which no access has been authorized (as
opposed to gaining physical access to the hardware)
 Malfeasance (exceeding authorizations) - acquiring the use of a system in excess of that which has been
authorized
 Unsanctioned Use / Exceeding Licensing - utilizing authorized system resources for unauthorized purposes
(resume, church bulletin, non-job-related e-mail or Internet browsing) or exceeding a user licensing
agreement
 Over- or Under-Classification - labeling of a resource at a higher or lower level of sensitivity than
appropriate
 Malicious Software - software whose purpose is to degrade system performance, modify or destroy data,
steal resources or subvert security in any manner
 Hardware Error / Failure [functionality] - hardware that stops providing the desired user services/resources
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 Hardware Error / Failure [security] - hardware that stops providing the desired security services/resources
 Software Error / Failure [functionality] - software that stops providing the desired user services/resources
 Software Error / Failure [security] - software that stops providing the desired security services/resources
 Media Failure - storage media that stops retaining stored information in a retrievable/intact manner

Why are information systems vulnerable?

 Information systems are vulnerable to destruction, error and abuse because they are susceptible to unauthorized
users who can gain access to company networks. Common threats against contemporary information can occur in
communication lines, with clients, communication lines, corporate servers and corporate systems

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Why Systems are Vulnerable. There are many reasons why systems are vulnerable to
attack:
Security is hard and expensive. It is not easy to design systems that resist penetration,
particularly in today's world where they are connected to open networks. It requires considerable
skill and investment of resources, often involving dozens of engineers and scientists and years of
work. Consequently, many systems have vulnerabilities which allow an intruder to bypass the
security controls. In many cases, the security controls themselves introduce weaknesses.
Security is a bottomless pit. It is often said that the only way to make a system secure is to pull
the plug. It is not practical, and usually impossible, to achieve 100% security. Not only is it too
expensive, it is unachievable because not all weaknesses and attacks can be anticipated.
Vulnerabilities can be found in even carefully designed products. New methods of attack are
continually being discovered. Thus, one settles for something less than perfect, say a 90% solution
aimed at preventing the simplest and most common attacks. However, this brings me to the next
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observation:
Security is complex and fuzzy. We speak about information security as though it were well-
defined and quantifiable. In fact, it is neither of these. Security policies are often complex,
imprecise, sometimes conflicting, and subject to human judgment.
Organizations are willing to take risks. Organizations generally do not demand perfect security
for their systems and information. They are willing to take risks, as they do with other assets and
technologies, in order to save time and money, to enjoy the benefits of the Internet and new services,
to boost productivity, and to ensure that their employees and customers are not denied legitimate
access. Many organizations connect to the internet knowing fully well that they may be vulnerable to
attack. Access to people, organizations, and information worldwide is considered well worth the risk.
Security is about risk management, not absolute prevention.
Developers and users have limited resources. System developers have limited resources to
spend on product development, and those resources have competing demands, including
functionality, performance, and customer support. Decisions are based on factors such as
marketability and profitability. Similarly, organizations have limited resources. Funds for security
management, products, and training are balanced with other needs of the organization. In many
organizations, the senior management do not view security as very important.
New technology is constantly emerging . New technologies, for example, to support World Wide
Web applications, bring forth new forms of vulnerabilities. In the rush to bring products to market and
increase connectivity, the security implications are not always thoroughly researched and
understood. Weaknesses are not discovered until after the products have been on the market
Security engineering lags behind the product development curve.
Security involves humans. Human beings are responsible for designing, configuring, and using
systems with security features. They make mistakes in judgment and in implementation. They take
shortcuts. They do not anticipate all possible failures. They can be conned by those wishing to
intrude.

Control for information systems vulnerabilities

Control systems are vulnerable to cyber attack from inside and outside the control system network. To
understand the vulnerabilities associated with control systems you must know the types of communications and
operations associated with the control system as well as have an understanding of the how attackers are using
the system vulnerabilities to their advantage.

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Vuluner threats, and Controls in Information Security

In an earlier post, I noted that one of the major goals of information security is to mitigate security risks. Another
major goal of information security as a discipline and as a profession is to try to protect valuable information assets.
In order to approach the study of methods of protecting these assets, we can adopt what is known as
a vulnerability/threat/control framework. To begin, consider a vulnerability, which is a weakness in some aspect
of an information system. If a vulnerability is exploited, then that exploitation has the potential to cause loss or
harm. A human being who intentionally exploits a vulnerability is perpetrating an attack on the system. An attack,
then, can be defined as an intentional exploitation of a system vulnerability. Next, we can consider a threat, which
is simply a set of circumstances that has the potential to cause loss or harm. As we will see shortly, threats and
vulnerabilities are very closely related. Finally, we have controls, which are things that we do or things that we
have which help to eliminate or reduce a vulnerability. Note that another name for a control is a countermeasure.

When first learning about information security, many people become confused regarding the difference between a
threat, a vulnerability, and a control. I will therefore provide a simple example that I hope will help you to
remember the difference between these three security concepts. Imagine that you are walking over a bridge.
Whenever you walk over a bridge there is always a certain threat to your safety; namely, that the bridge might
collapse underneath you.

Here, the possibility of the bridge collapsing is a threat to your safety. Now imagine that there is a weakness in the
bridge. For this example, let‘s say that the mortar between the blocks of stone from which the bridge is constructed
has begun to crumble or deteriorate.

The weaknesses in the mortar are vulnerabilities, and if those vulnerabilities were to be exploited, the threat of the
bridge collapsing would be actualized, and might cause you physical harm.

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A control, then, is something that we do or something that we have which helps us to eliminate or reduce a
vulnerability. In this example, we might apply bracing to reinforce the bridge or we might try to repair the cracks
in the concrete, thus reducing the possibility that the vulnerability will be exploited.

Technologies used to control information systems vulnerabilities

Not found

Week 7 and 8

Electronics Commerce

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Challenges

 Internet Technology



 What is Internet Technologies. 1. That group of technologies that allow users to access information and
communication over the World Wide Web (Web browsers, ftp, e-mail, associated hardware, Internet service
providers, and so forth).
 Internet technology is the ability of the Internet to transmit information and data through different
servers and systems. Internet technology is important in many different industries because it allows people
to communicate with each other through means that were not necessarily available.
 Advertisement
 The Internet is essentially a large database where all different types of information can be passed and
transmitted. It can be passively passed along in the form of non interactive websites and blogs; it can also
be actively passed along in the form of file sharing and document loading. Internet technology has lead to
a wealth of information available to anyone who is able to access the Internet. It has allowed people who
were accustomed to textbooks and libraries to learn anything they could want from the comfort of a
computer.
 Internet technology is constantly improving and is able to speed up the information highway that it has
created. With the technologies powering the Internet, speeds are faster, more information is available and
different processes are done that were not possible in the past. Internet technology has changed, and will
continue to change, the way that the world does business and how people interact in daily life.

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What is digital firm

hat is Digital Firm?

February 18, 2015 freeplrarticlespot Digital Firm

DEFINITION: ―A digital firm is one in which nearly all of the organization’s significant business relationships
with customers, suppliers, and employees are digitally enabled, and key corporate assets are managed through
digital means.”

When a firm goes digital, it‘s not about just adding a computer system to the mix but throwing a computer system
at outdated business processes is exactly the wrong thing to do. A truly digital firm has several characteristics that
distinguish it from most of the firms claiming to be digitized:

 Significant business relationships with customers, suppliers, and employees are digitally enabled and mediated.

 Core business processes are accomplished through digital networks and span the entire organization or link
multiple organizations.

 Key corporate assets — intellectual property, core competencies, and financial and human assets — are managed
through digital means.

 Internal and external environments are quickly recognized and dealt with.

And the number one reason digital firms experience greater opportunities for success and profits is because they
view information technology as the ―core of the business and the primary management tool.

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Advertisements

2nd Internet technology & The digital fimr

Internet technology and the digital firm.
1. 1. CHAPTER 4 INTERNET TECHNOLOGY AND THE DIGITAL FIRM.
2. 2. Reading notes for chapter 4 in the textbook. Chapter 4 is on the digital firm, electronic commerce and
business. We have to read entire chapter carefully and digest the material thoroughly. Internet is a widely
used technology today and there is no doubt that Internet and digital organization will shape every aspect
of our lives, personal as well as professional in the years ahead. Section 4.1 elaborates on the benefits of
Internet technology to the organizations of any kind. Read section 4.1 carefully and pay attention to Internet
business models and concepts like information asymmetry, richness, reach, dynamic pricing and portals.
Table 4.1 is a concise summary of Internet business models. Customer-centered retailing, business-to-
business electronic commerce, and electronic payment systems also deserve a close and critical look.
Marshall Industries is an interesting example of a virtual distribution network and gives us clues about
future business models. Examine figure 4.7 carefully.
3. 3. Reading notes for chapter 4 in the textbook. Section 4.3 explores how intranets support electronic
business and services like group collaboration, coordination and supply chain management that are vital
for any organization. Group collaboration at Internet has new dynamics and implications in product design
and delivery as well as organization‘s functional areas and supply chain management. Finally management
challenges and opportunities deserve careful scrutiny .
4. 4. <ul><li>Internet technology </li></ul><ul><li>Standardised communication architecture.
</li></ul><ul><li>Direct communication between related parties. </li></ul><ul><li>Reduced transaction
costs </li></ul><ul><ul><li>Airline ticket $8  $1 </li></ul></ul><ul><ul><li>Banking $1.08  $0.13
</li></ul></ul><ul><li>Infrastructure for electronic business. </li></ul><ul><li>Unbundling the
information from the product. </li></ul>
5. 5. Business model: An abstraction of what and how the enterprise delivers a product or service,showing
how the enterprise creates wealth .
6. 6. Changing Economics Of Information Information Asymmetry: Situation in which the relative bargaining
power of two parties in a transaction is determined by one party possessing more information essential to
the transaction than the other party. Richness: Measurement of the depth and detail of information that a
business can supply to the customer as well as information the business collects about the customer. Reach:
Measurement of how many people a business can connect with and how many products it can offer those
people .
7. 7. INTERNET BUSINESS MODELS Asia capacity Exchange Covisint E-steel Fibermarket Bid-ask
system where multiple buyers can purchase from multiple sellers. On-line exchange Shopnow.com
Dealernet Industrial mall Insure market Concentrates information about products and services from

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multiple providers at one central point.Purchases can search,comparison-shop,and sometimes complete the
sales transaction. Marketplace concentrator Amazon.com Wine.com, Wingspanbank.com Sells physical
goods or services on-line instead of through a physical storefront or retail outlet. Delivery of nondigital
goods and services takes place through traditional means. Virtual Store front Examples Description
Category
8. 8. Reverse auction Consumers submit a bid to multiple sellers to buy goods or services at a buyer specified
price. Priceline.com Importquote.com Aggregator Groups of people who want to purchase a particular
product sign up and then seek a volume discount from vendors. Mobshop.com Ebay Ubid Bigequip.com
Provides electronic clearinghouse for products where price and availability are constantly changing,
sometimes in response to customer actions Auction E*TRADE Ameritrade Buyers can view rates and
terms, but the primary business activity is to complete the transaction. Transaction broker Partnet
Travelocity Provides product, pricing, and availability information. Some facilitate transactions, but their
main value is the information they provide. Information broker
9. 10. Internet Business Models Dynamic pricing Pricing of items based on real time interactions between
buyers and sellers that determine what an item is worth at any particular moment. Portal Web site or other
service that provides an initial point of entry to the web or to internal company data. Banner ad Graphic
display on a web page used for advertising. The banner is linked to the advertiser‘s web site so that a person
clicking on it will be transported to the advertiser‘s web site. Syndicator Business aggregating content or
applications from multiple sources,packaging them for distribution,and reselling them to third-party web
sites. Pure-play Business model based solely on the internet. Clicks-and-mortar Business model where the
web site is an extension of a traditional bricks-and-mortar businesses.
10. 11. Electronic Commerce Business-to-Consumer(B2C)electronic commerce Electronic retailing of
products and services directly to individual consumers. Business-to-business(B2B)electronic commerce
Electronic sales of goods and services among businesses. Consumer-to-consumer(C2C)electronic
commerce Consumers selling goods and services electronically to other consumers. Mobile commerce



Business to consumer

The term business-to-consumer (B2C) refers to the process of selling products and services directly between
a business and consumers who are the end-users of its products or services. Most companies that sell directly
to consumers can be referred to as B2C companies.

What Is Business-to-Consumer (B2C)?

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The term business-to-consumer (B2C) refers to the process of selling products and services directly between a
business and consumers who are the end-users of its products or services. Most companies that sell directly to
consumers can be referred to as B2C companies.

B2C became immensely popular during the dotcom boom of the late 1990s when it was mainly used to refer to
online retailers who sold products and services to consumers through the Internet.

As a business model, business-to-consumer differs significantly from the business-to-business model, which refers
to commerce between two or more businesses.

KEY TAKEAWAYS

 Business-to-consumer refers to the process of businesses selling products and services directly to
consumers, with no middleman.
 B2C is typically used to refer to online retailers who sell products and services to consumers through the
Internet.
 Online B2C became a threat to traditional retailers, who profited from adding a markup to the price.
 However, companies like Amazon, eBay, and Priceline have thrived, ultimately becoming industry
disruptors.
Understanding Business-to-Consumer
Business-to-consumer (B2C) is among the most popular and widely known of sales models. The idea of B2C was
first utilized by Michael Aldrich in 1979, who used television as the primary medium to reach out to consumers.

B2C traditionally referred to mall shopping, eating out at restaurants, pay-per-view movies, and infomercials.
However, the rise of the Internet created a whole new B2C business channel in the form of e-commerce, or selling
goods and services over the Internet.

Although many B2C companies fell victim to the subsequent dot-com bust as investor interest in the sector
dwindled and venture capital funding dried up, B2C leaders such as Amazon and Priceline survived the shakeout
and have since seen great success.

Any business that relies on B2C sales must maintain good relations with their customers to ensure they return.
Unlike business-to-business (B2B), whose marketing campaigns are geared to demonstrate the value of a product
or service, companies that rely on B2C must elicit an emotional response to their marketing in their customers.

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Business-to-Consumer
B2C Storefronts Vs. Internet Retailers
Traditionally, many manufacturers sold their products to retailers with physical locations. Retailers made profits
on the markup they added to the price paid to the manufacturer. But that changed once the Internet came. New
businesses arose that promised to sell directly to the consumer, thus cutting out the middleman—the retailer—and
lowering prices. During the bust of the dotcom boom in the 1990s, businesses fought to secure a web presence.
Many retailers were forced to shutter their doors and went out of business.

Decades after the dotcom revolution, B2C companies with a web presence are continuing to dominate over their
traditional brick-and-mortar competitors. Companies such as Amazon, Priceline, and eBay are survivors of the
early dot com boom. They have gone on to expand upon their early success to become industry disruptors.

Online B2C can be broken down into 5 categories: direct sellers, online intermediaries, advertising-based B2C,
community-based, and fee-based.
B2C in the Digital World
There are typically five types of online B2C business models that most companies use online to target consumers.

1. Direct sellers. This is the most common model, in which people buy goods from online retailers. These may
include manufacturers or small businesses, or simply online versions of department stores that sell products from
different manufacturers.

2. Online intermediaries. These are liaisons or go-betweens who don‘t actually own products or services that put
buyers and sellers together. Sites like Expedia, Trivago, and Etsy fall into this category.

3. Advertising-based B2C. This model uses free content to get visitors to a website. Those visitors, in turn, come
across digital or online ads. Basically, large volumes of web traffic are used to sell advertising, which sells goods
and services. Media sites like the Huffington Post, a high-traffic site that mixes in advertising with its native content
is one example.

4. Community-based. Sites like Facebook, which builds online communities based on shared interests, help
marketers and advertisers promote their products directly to consumers. Websites will target ads based on users‘
demographics and geographical location.

5. Fee-based. Direct-to-consumer sites like Netflix charge a fee so consumers can access their content. The site
may also offer free, but limited, content while charging for most of it. The New York Times and other large
newspapers often use a fee-based B2C business model.

B2C Companies and Mobile

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Decades after the e-commerce boom, B2C companies are continuing to eye a growing market: mobile purchasing.
With smartphone apps and traffic growing year-over-year, B2C companies have been shifting attention to mobile
users and capitalizing on this popular technology.

Throughout the early 2010s, B2C companies were rushing to develop mobile apps, just as they were with websites
decades earlier. In short, success in a B2C model is predicated on continuously evolving with the appetites,
opinions, trends, and the desires of consumers.

Because of the nature of the purchases and relationships between businesses, sales in the B2B model may take
longer than those in the B2C model.

B2C Vs. Business-to-Business (B2B)

As mentioned above, the business-to-consumer model differs from the business-to-business (B2B) model. While
consumers buy products for their personal use, businesses buy products to use for their companies. Large
purchases, such as capital equipment, generally requires approval from those who head up a company. This makes
a business' purchasing power much more complex than that of the average consumer.

Unlike the B2C business model, pricing structures tend to be different in the B2B model. With B2C, consumers
often pay the same price for the same products. However, prices are not necessarily the same. In fact, businesses
tend to negotiate prices and payment terms.

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B to B

usiness-to-Business (B2B)

By JAMES CHEN

Reviewed By JULIUS MANSA

Updated May 29, 2020

What Is Business-to-Business (B2B)?

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Business-to-business (B2B), also called B-to-B, is a form of transaction between businesses, such as one involving
a manufacturer and wholesaler, or a wholesaler and a retailer. Business-to-business refers to business that is
conducted between companies, rather than between a company and individual consumer. Business-to-business
stands in contrast to business-to-consumer (B2C) and business-to-government (B2G) transactions.

KEY TAKEAWAYS

 Business-to-business (B2B) is a transaction or business conducted between one business and another, such
as a wholesaler and retailer.
 B2B transactions tend to happen in the supply chain, where one company will purchase raw materials from
another to be used in the manufacturing process.
 B2B transactions are also commonplace for auto industry companies, as well as property management,
housekeeping, and industrial cleanup companies.
 Meanwhile, business-to-consumer transactions (B2C) are those made between a company and individual
consumers.

1:12

Business-to-Business
Understanding Business-to-Business (B2B)
Business-to-business transactions are common in a typical supply chain, as companies purchase components and
products such as other raw materials for use in the manufacturing processes. Finished products can then be sold to
individuals via business-to-consumer transactions.

In the context of communication, business-to-business refers to methods by which employees from different
companies can connect with one another, such as through social media. This type of communication between the
employees of two or more companies is called B2B communication.

B2B E-Commerce
Late in 2018, Forrester said the B2B e-commerce market topped $1.134 trillion—above the $954 billion it had
projected for 2018 in a forecast released in 2017. That's roughly 12% of the total $9 trillion in total US B2B sales
for the year. They expect this percentage to climb to 17% by 2023. The internet provides a robust environment in
which businesses can find out about products and services and lay the groundwork for future business-to-business
transactions.

Company websites allow interested parties to learn about a business's products and services and initiate contact.
Online product and supply exchange websites allow businesses to search for products and services and initiate
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procurement through e-procurement interfaces. Specialized online directories providing information about
particular industries, companies and the products and services they provide also facilitate B2B transactions.

Special Considerations
Business-to-business transactions require planning to be successful. Such transactions rely on a company‘s account
management personnel to establish business client relationships. Business-to-business relationships must also be
nurtured, typically through professional interactions prior to sales, for successful transactions to take place.

Traditional marketing practices also help businesses connect with business clients. Trade publications aid in this
effort, offering businesses opportunities to advertise in print and online. A business‘s presence at conferences and
trade shows also builds awareness of the products and services it provides to other businesses.

Example of Business-to-Business (B2B)

Business-to-business transactions and large corporate accounts are commonplace for firms in manufacturing.
Samsung, for example, is one of Apple's largest suppliers in the production of the iPhone. Apple also holds B2B
relationships with firms like Intel, Panasonic and semiconductor producer Micron Technology.

B2B transactions are also the backbone of the automobile industry. Many vehicle components are manufactured
independently, and auto manufacturers purchase these parts to assemble automobiles. Tires, batteries, electronics,
hoses and door locks, for example, are usually manufactured by various companies and sold directly to automobile
manufacturers.

Service providers also engage in B2B transactions. Companies specializing in property management,
housekeeping, and industrial cleanup, for example, often sell these services exclusively to other businesses, rather
than individual consumers.

Consumer to consumer

What Is Customer to Customer (C2C)?

Customer to customer (C2C) is a business model whereby customers can trade with each other, typically in an
online environment. Two implementations of C2C markets are auctions and classified advertisements. C2C
marketing has soared in popularity with the arrival of the Internet and companies such as eBay, Etsy, and Craigslist.

KEY TAKEAWAYS

 Customer to customer (C2C) is a business model that enables customers to trade with each other, frequently
in an online environment.
 C2C businesses are a type of business model that emerged with e-commerce technology and the sharing
economy.
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 Online C2C company sites include Craigslist, Etsy, and eBay, which sell products or services through a
classified or auction system.
 Some C2C companies have problems, such as a lack of quality control and payment guarantees.
How Customer to Customer (C2C) Works
C2C represents a market environment where one customer purchases goods from another customer using a third-
party business or platform to facilitate the transaction. C2C companies are a type of business model that emerged
with e-commerce technology and the sharing economy.

Customers benefit from the competition for products and often find items that are difficult to locate elsewhere.
Also, margins can be higher than traditional pricing methods for sellers because there are minimal costs due to the
absence of retailers or wholesalers. C2C sites are convenient because there is no need to visit a brick-and-
mortar store. Sellers list their products online, and the buyers come to them.

The "Amazon effect" is named after the popular global online retailer and refers to the competitive gains e-
commerce businesses have made as more shoppers make purchases online instead of shopping at brick-and-mortar
stores.
Types of Customer to Customer (C2C) Businesses
Craigslist is an e-commerce platform that connects people advertising products, services, or situations. Craigslist
not only provides a platform for buying, selling, and trading products but posts monthly classified ads, such as
employment opportunities and property listings. Like many others, this platform requires the seller to ship items
directly to the buyer.

Etsy allows company owners to create their custom website on which to market their products to consumers. The
C2C site offers guidance and tools for growing a business that ranges in price according to a company's stage of
development. There's also a "Sell on Etsy" app that helps to manage orders, listings, and customer queries
efficiently.

eBay features two types of product listings: fixed-price items and auction items. Fixed price items can be purchased
quickly by selecting the Buy It Now button. Auction items feature a Place Bid button for entering bids and show
a current bid price. These items are open to bids for a predetermined time and are declared "sold" to the highest
bidder.

Revenue and Growth of the C2C Market

C2C websites and similar platforms make money from fees charged to sellers for listing items for sale, adding on
promotional features, and facilitating credit card transactions. These C2C transactions typically involve used
products sold through a classified or auction system.

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The C2C market is projected to grow in the future because of its cost-effectiveness. The cost of using third parties is
declining, and the number of products for sale by consumers is steadily rising. Retailers consider it to be
an essential business model because of the popularity of social media and other online channels. These channels
showcase specific products already owned by consumers and increase demand, which drives increased online
traffic to C2C platforms.

However, C2C has problems such as a lack of quality control or payment guarantees. In some cases, there is little
support for credit card transactions, although the emergence of PayPal and other such payment systems over the
years has helped simplify payments on C2C platforms.

Real World Example of Customer to Customer (C2C)

The C2C marketplace has increased over time, as more companies have entered the space to facilitate C2C
transactions. Many companies target niche markets and list specific products to attract unique consumers.

For example, Amit Lakhotia, former vice president of payments at Paytm, left his position in January 2016 to
pursue other ventures, one of which was Tokopedia, one of Indonesia's largest online marketplaces. Tokopedia is
a C2C retailer that provides a platform on which entrepreneurs can open small and midsize C2C enterprises (SME)
for free. Between the second quarter of 2018 and the second quarter of 2019, Tokopedia was Indonesia's top e-
commerce website, bringing in 140.4 million web visits.

The C2C marketplace is increasing in popularity among sellers looking to maximize their sales potential by
connecting with customers that they otherwise would not reach using traditional selling methods. Online platforms
such as Etsy and Craigslist appeal to customers who can locate mostly any product or service at a price they are
willing to pay.

Functional applications

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Challenges & opportunities

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Introduction

Strategic planning comprises the procedures of defining objectives and creating strategies to attain those
objectives. A strategy is a long term plan of action designed to achieve a particular goal, as differentiated from
tactics or immediate actions with resources at hand. The reason for strategic or long-range planning is to assist the
company in establishing priorities and to better serve the needs of the stakeholders.

An Introduction to Strategic Planning

Strategic planning is the process of documenting and establishing a direction of your small business—by assessing
both where you are and where you‘re going. The strategic plan gives you a place to record your mission, vision,
and values, as well as your long-term goals and the action plans you‘ll use to reach them. A well-written strategic
plan can play a pivotal role in your small business‘s growth and success because it tells you and your employees
how best to respond to opportunities and challenges.

Despite the benefits of having a strategic plan in place, a growing number of small business owners aren‘t focusing
on the long-term strategies of their businesses. In a 2018 Constant Contact survey of 1,005 small business owners,
63% said they plan only a year (or less) in advance.

If you‘re one of these small business owners, it‘s not too late to think differently. Your future success depends on
effective strategic planning. It‘s a process of looking ahead that should involve your entire business, and the
discussions can lead to meaningful changes in your business. Strategic planning consists of analyzing the business
and setting realistic goals and objectives. This leads to the creation of a formal document that lays out the
company‘s views and goals for the future.

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Good Planning: Characteristics # 1. A good plan is based upon clear, well-defined and easily understood
objectives. General objectives like improving morale or increasing profits are ambiguous in nature and do not lend
to specific steps and plans. If possible, objectives must be quantified for sake of simplicity

Six must-haves for successful strategic plans

Must-have 1: Senior management collectively owns the strategic plan

In most organizations each senior manager has a silo or line responsibility under his or her purview. In strategic
planning, however, the entire senior management team must come together to recognize their collective ownership
of the overall vision and strategic direction of the entire organization. To make this work, it‘s advisable to have
each senior manager‘s compensation or bonus structure be tied to the organization‘s execution of the plan as a
whole, not just that of an individual department or area.

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Must-have 2: The strategic plan is inclusive.

We often see strategic plans developed by CEOs or senior management teams and then cascaded down their
respective organizations. This approach rarely works because the people on the ground—those ultimately
responsible for executing the nuts and bolts of the plan—haven‘t had input along the way.

The best plans make space for employees to be heard and to contribute to the plan as management begins to design
tactics that will deliver on the vision. People respond better and feel ownership when they feel respected and
included. What‘s more, input from people on the front lines is invaluable because it grounds the strategic plan in
the practical realities of the workplace and culture.

Must-have 3: The strategic plan incorporates operational realities.

Many organizations struggle to acknowledge their challenges and weaknesses. Without a candid assessment of the
organization‘s landscape, a strategic plan will not be effective.

With strategic planning, there‘s an entire marathon between the starting blocks and the finish line. An
organization‘s operational realities will dictate the best way to run that marathon. If you don‘t know your
weaknesses, you will hit the wall before you even get to the five-mile marker.

Must-have 4: The strategic plan includes specific and tangible actions assigned to individuals.

We typically see an organization‘s senior management team go off-site and create grandiose strategic plans that
sound great in principle. However, when those same mangers get back to their desks, the operational realities of
their jobs take precedence. Day-to-day tasks sideline many of their inspired plans and ideas.

The best strategic plans are extremely detailed. They drill down to the specificity of who will do what by when—
and then not only hold those individuals accountable for delivery, but also provide them with the resources to do
so.

Must-have 5: The strategic plan incorporates specific measures to evaluate progress.

How will you know that your strategic plan is a success?

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It‘s amazing how many organizations don‘t ask themselves that question. In the majority of cases, organizations
have to spend a few years just laying a strong foundation—they may have to build or refine a team, put in place
systems, develop partnerships or more. This often means that monetary results don‘t come quickly. So, how do
you know you‘re on track? How do you appease a board of directors that might be looking at the bottom line as an
indicator of success?

The best strategic plans build in regular quantitative and qualitative measurements and milestones. In addition,
those milestones must take into account not just whether an action was completed, but that it was done well.

Must-have 6: The strategic plan is linked to the organization’s profit and loss statement.

To be effective, strategic plans must be grounded in economic realities: planning takes considerable time and
resources, embracing dramatic change can be expensive, and plans need to be funded and marketed to be
successful. All these factors have associated costs that affect the profit and loss of the organization over both the
short and long term. It‘s essential that organizations understand these costs when devising and approving goals
and actions.

Strategic planning Model ABCDE

 Many people find the ABCDE Model* to be a very useful model for understanding the flow of strategy from the
beginning to the end of a cycle of strategic planning/execution activities. The model is illustrated in the nearby
graphic and described below: A – Assessment of current situation. This element involves scanning the external
environment, competitive scanning, assessing the current situation; and clarifying perceptions of problems, needs,
and opportunities.

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Many people find the ABCDE Model* to be a very useful model for understanding the flow of strategy from the
beginning to the end of a cycle of strategic planning/execution activities. The model is illustrated in the nearby
graphic and described below:

A – Assessment of current situation. This element involves scanning the external environment, competitive
scanning, assessing the current situation; and clarifying perceptions of problems, needs, and opportunities. I
provided two useful ideas for this sensing environmental context in this earlier article.
B – Baseline the gap. This element involves identifying performance gaps, and evaluating trends.
C – Components of strategy. Example components of strategy include common concepts like core competencies,
values, mission, vision, metrics, goals and objectives, portfolios, and processes. Vision is the most important of
the components (in formulating and executing a strategic initiative). This describes the point where managers
would select and fund strategic initiatives as a ‗C‘ component.
D – Delivery of component. This is the delivery of the strategic initiative, as well as other programs, projects, and
operational work. As part of this, executives will formulate action plans; benefits capture plans, targets, standards,
and metrics.
E – Evaluation of progress. This includes review of progress, reporting, tweaking of goals, corrective actions, and
learning.

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Week 9

Category of Topology

Geometric representation of how the computers are connected to each other is known as topology. There are
five types of topology – Mesh, Star, Bus, Ring and Hybrid.

Types of Network Topology

Network Topology is the schematic description of a network arrangement, connecting various nodes(sender and
receiver) through lines of connection.

BUS Topology

Bus topology is a network type in which every computer and network device is connected to single cable. When
it has exactly two endpoints, then it is called Linear Bus topology.

Features of Bus Topology

1. It transmits data only in one direction.

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2. Every device is connected to a single cable

Advantages of Bus Topology

1. It is cost effective.
2. Cable required is least compared to other network topology.
3. Used in small networks.
4. It is easy to understand.
5. Easy to expand joining two cables together.

Disadvantages of Bus Topology

1. Cables fails then whole network fails.

2. If network traffic is heavy or nodes are more the performance of the network decreases.
3. Cable has a limited length.
4. It is slower than the ring topology.

RING Topology

It is called ring topology because it forms a ring as each computer is connected to another computer, with the last
one connected to the first. Exactly two neighbours for each device.

Features of Ring Topology

1. A number of repeaters are used for Ring topology with large number of nodes, because if someone wants
to send some data to the last node in the ring topology with 100 nodes, then the data will have to pass
through 99 nodes to reach the 100th node. Hence to prevent data loss repeaters are used in the network.

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2. The transmission is unidirectional, but it can be made bidirectional by having 2 connections between each
Network Node, it is called Dual Ring Topology.
3. In Dual Ring Topology, two ring networks are formed, and data flow is in opposite direction in them. Also,
if one ring fails, the second ring can act as a backup, to keep the network up.
4. Data is transferred in a sequential manner that is bit by bit. Data transmitted, has to pass through each node
of the network, till the destination node.

Advantages of Ring Topology

1. Transmitting network is not affected by high traffic or by adding more nodes, as only the nodes having
tokens can transmit data.
2. Cheap to install and expand

Disadvantages of Ring Topology

1. Troubleshooting is difficult in ring topology.

2. Adding or deleting the computers disturbs the network activity.
3. Failure of one computer disturbs the whole network.

STAR Topology

In this type of topology all the computers are connected to a single hub through a cable. This hub is the central
node and all others nodes are connected to the central node.

Features of Star Topology

1. Every node has its own dedicated connection to the hub.

2. Hub acts as a repeater for data flow.
3. Can be used with twisted pair, Optical Fibre or coaxial cable.

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Advantages of Star Topology

1. Fast performance with few nodes and low network traffic.

2. Hub can be upgraded easily.
3. Easy to troubleshoot.
4. Easy to setup and modify.
5. Only that node is affected which has failed, rest of the nodes can work smoothly.

Disadvantages of Star Topology

1. Cost of installation is high.

2. Expensive to use.
3. If the hub fails then the whole network is stopped because all the nodes depend on the hub.
4. Performance is based on the hub that is it depends on its capacity

MESH Topology

It is a point-to-point connection to other nodes or devices. All the network nodes are connected to each other. Mesh
has n(n-1)/2 physical channels to link n devices.

There are two techniques to transmit data over the Mesh topology, they are :

1. Routing
2. Flooding

MESH Topology: Routing

In routing, the nodes have a routing logic, as per the network requirements. Like routing logic to direct the data to
reach the destination using the shortest distance. Or, routing logic which has information about the broken links,
and it avoids those node etc. We can even have routing logic, to re-configure the failed nodes.

MESH Topology: Flooding

In flooding, the same data is transmitted to all the network nodes, hence no routing logic is required. The network
is robust, and the its very unlikely to lose the data. But it leads to unwanted load over the network.

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Types of Mesh Topology

1. Partial Mesh Topology : In this topology some of the systems are connected in the same fashion as mesh
topology but some devices are only connected to two or three devices.
2. Full Mesh Topology : Each and every nodes or devices are connected to each other.

Features of Mesh Topology

1. Fully connected.
2. Robust.
3. Not flexible.

Advantages of Mesh Topology

1. Each connection can carry its own data load.

2. It is robust.
3. Fault is diagnosed easily.
4. Provides security and privacy.

Disadvantages of Mesh Topology

1. Installation and configuration is difficult.

2. Cabling cost is more.
3. Bulk wiring is required.

TREE Topology

It has a root node and all other nodes are connected to it forming a hierarchy. It is also called hierarchical topology.
It should at least have three levels to the hierarchy.

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Features of Tree Topology

1. Ideal if workstations are located in groups.

2. Used in Wide Area Network.

Advantages of Tree Topology

1. Extension of bus and star topologies.

2. Expansion of nodes is possible and easy.
3. Easily managed and maintained.
4. Error detection is easily done.

Disadvantages of Tree Topology

1. Heavily cabled.
2. Costly.
3. If more nodes are added maintenance is difficult.
4. Central hub fails, network fails.

HYBRID Topology

It is two different types of topologies which is a mixture of two or more topologies. For example if in an office in
one department ring topology is used and in another star topology is used, connecting these topologies will result
in Hybrid Topology (ring topology and star topology).

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Features of Hybrid Topology

1. It is a combination of two or topologies

2. Inherits the advantages and disadvantages of the topologies included

Advantages of Hybrid Topology

1. Reliable as Error detecting and trouble shooting is easy.

2. Effective.
3. Scalable as size can be increased easily.
4. Flexible.

Disadvantages of Hybrid Topology

1. Complex in design.
2. Costly.

Transmission mode

Transmission mode refers to the mechanism of transferring of data between two devices connected over a
network. It is also called Communication Mode. These modes direct the direction of flow of information.

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Computer Network Transmission Modes

BY CHAITANYA SINGH | FILED UNDER: COMPUTER NETWORK

The data is transmitted from one device to another device through a transmission mode. The transmission mode
decides the direction of data in which the data needs to travel to reach the receiver system or node. The transmission
mode is divided in three categories:

1. Simplex
2. Half-Duplex
3. Full-Duplex

Simplex Mode

1. In simplex mode the data transmits in one direction only, from one system to another system.
2. The sender device that sends data can only send data and cannot receive it. On the other hand the receiver device
can only receive the data and cannot send it.
3. Television is an example of simplex mode transmission as the broadcast sends signals to our TV but never
receives signals back from our TV. This is a unidirectional transmission.

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Advantages of Simplex Mode:

The full capacity of the transmission medium is utilised as the transmission is one way and cannot have traffic
issues.

Disadvantages of Simplex Mode:

No bidirectional communication is possible. Two devices cannot communicate with each other using simplex
mode of transmission.

Half-Duplex Mode

1. In half duplex mode transmission can be done both ways which means if two systems are connected with half-
duplex mode of transmission, they both can send and receive data but not at the same time.
2. If one device is sending data then other device cannot send data until it receives the data which is already in
transmission. You can say that the communication is not simultaneous.
3. The radio communication device that our soldiers use at the battle fields are the examples of half duplex mode
transmission as they send message and then say over and then the person on other hand send his message and this
way they communicate but not simultaneously like we used to do on mobile.

Advantages of Half-Duplex mode:

Both devices can send and receive data.
Whole bandwidth can be utilised as at a time only one signal transmits.

Disadvantages of Half-Duplex mode:

The disadvantage in half duplex mode is that the other device cannot send data until it receives the data which is
already in transmission, this can cause delays to the communication.

Full Duplex Mode

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1. In full duplex mode both the connected devices can send and receive data simultaneously. The mobile phone
we use is an example of full duplex mode where we can communicate simultaneously.
2. Both the devices can send and receive the data at the same time.

Advantages of Full Duplex mode:

No delays in communication as both can send and receive data simultaneously.

Disadvantages of Full Duplex mode:

No proper bandwidth utilization as the same line is used for sending and receiving data at the same time.

Categories of network

Computer Networks fall into three classes regarding the size, distance and the structure namely: LAN (Local
Area Network), MAN (Metropolitan Area Network), WAN (Wide Area Network). Before we discussing about
type of network we can discuss about what is a network.

11 Types of Networks in Use Today

1. Personal Area Network (PAN)

The smallest and most basic type of network, a PAN is made up of a wireless modem, a computer or two, phones,
printers, tablets, etc., and revolves around one person in one building. These types of networks are typically found
in small offices or residences, and are managed by one person or organization from a single device.

2. Local Area Network (LAN)

We‘re confident that you‘ve heard of these types of networks before – LANs are the most frequently discussed
networks, one of the most common, one of the most original and one of the simplest types of
networks. LANs connect groups of computers and low-voltage devices together across short distances (within a
building or between a group of two or three buildings in close proximity to each other) to share information and
resources. Enterprises typically manage and maintain LANs.

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Using routers, LANs can connect to wide area networks (WANs, explained below) to rapidly and safely transfer
data.

3. Wireless Local Area Network (WLAN)

Functioning like a LAN, WLANs make use of wireless network technology, such as Wi-Fi. Typically seen in the
same types of applications as LANs, these types of networks don‘t require that devices rely on physical cables to
connect to the network.

4. Campus Area Network (CAN)

Larger than LANs, but smaller than metropolitan area networks (MANs, explained below), these types of networks
are typically seen in universities, large K-12 school districts or small businesses. They can be spread across several
buildings that are fairly close to each other so users can share resources.

5. Metropolitan Area Network (MAN)

These types of networks are larger than LANs but smaller than WANs – and incorporate elements from both types
of networks. MANs span an entire geographic area (typically a town or city, but sometimes a campus). Ownership
and maintenance is handled by either a single person or company (a local council, a large company, etc.).

6. Wide Area Network (WAN)

Slightly more complex than a LAN, a WAN connects computers together across longer physical distances. This
allows computers and low-voltage devices to be remotely connected to each other over one large network to
communicate even when they‘re miles apart.

The Internet is the most basic example of a WAN, connecting all computers together around the world. Because
of a WAN‘s vast reach, it is typically owned and maintained by multiple administrators or the public.

7. Storage-Area Network (SAN)

As a dedicated high-speed network that connects shared pools of storage devices to several servers, these types of
networks don‘t rely on a LAN or WAN. Instead, they move storage resources away from the network and place
them into their own high-performance network. SANs can be accessed in the same fashion as a drive attached to a
server. Types of storage-area networks include converged, virtual and unified SANs.

8. System-Area Network (also known as SAN)

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This term is fairly new within the past two decades. It is used to explain a relatively local network that is designed
to provide high-speed connection in server-to-server applications (cluster environments), storage area networks
(called ―SANs‖ as well) and processor-to-processor applications. The computers connected on a SAN operate as
a single system at very high speeds.

9. Passive Optical Local Area Network (POLAN)

As an alternative to traditional switch-based Ethernet LANs, POLAN technology can be integrated into structured
cabling to overcome concerns about supporting traditional Ethernet protocols and network applications such as
PoE (Power over Ethernet). A point-to-multipoint LAN architecture, POLAN uses optical splitters to split an
optical signal from one strand of singlemode optical fiber into multiple signals to serve users and devices.

10. Enterprise Private Network (EPN)

These types of networks are built and owned by businesses that want to securely connect its various locations to
share computer resources.

11. Virtual Private Network (VPN)

By extending a private network across the Internet, a VPN lets its users send and receive data as if their devices
were connected to the private network – even if they‘re not. Through a virtual point-to-point connection, users can
access a private network remotely.

If you have questions about which type of network is right for your organization, or want to learn more about
Belden‘s network solutions that improve uptime, maintain security, and help improve user access, click here.

OSI Model

The OSI Model (Open Systems Interconnection Model) is a conceptual framework used to describe the functions
of a networking system. The OSI model characterizes computing functions into a universal set of rules and
requirements in order to support interoperability between different products and software.

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What is the OSI model?

The Open Systems Interconnection (OSI) model is a conceptual model created by the International Organization
for Standardization which enables diverse communication systems to communicate using standard protocols. In
plain English, the OSI provides a standard for different computer systems to be able to communicate with each
other.

The OSI model can be seen as a universal language for computer networking. It‘s based on the concept of splitting
up a communication system into seven abstract layers, each one stacked upon the last.

Each layer of the OSI model handles a specific job and communicates with the layers above and below itself. DDoS
attacks target specific layers of a network connection; application layer attacks target layer 7 and protocol layer
attacks target layers 3 and 4.

Why does the OSI model matter?

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Although the modern Internet doesn‘t strictly follow the OSI model (it more closely follows the simpler Internet
protocol suite), the OSI model is still very useful for troubleshooting network problems. Whether it‘s one person
who can‘t get their laptop on the Internet, or a web site being down for thousands of users, the OSI model can help
to break down the problem and isolate the source of the trouble. If the problem can be narrowed down to one
specific layer of the model, a lot of unnecessary work can be avoided.

What are the seven layers of the OSI model?

The seven abstraction layers of the OSI model can be defined as follows, from top to bottom:

7. The Application Layer

This is the only layer that directly interacts with data from the user. Software applications like web browsers and
email clients rely on the application layer to initiate communications. But it should be made clear that client
software applications are not part of the application layer; rather the application layer is responsible for the
protocols and data manipulation that the software relies on to present meaningful data to the user. Application
layer protocols include HTTP as well as SMTP (Simple Mail Transfer Protocol is one of the protocols that enables
email communications).

6. The Presentation Layer

This layer is primarily responsible for preparing data so that it can be used by the application layer; in other words,
layer 6 makes the data presentable for applications to consume. The presentation layer is responsible for
translation, encryption, and compression of data.

Two communicating devices communicating may be using different encoding methods, so layer 6 is responsible
for translating incoming data into a syntax that the application layer of the receiving device can understand.

If the devices are communicating over an encrypted connection, layer 6 is responsible for adding the encryption
on the sender‘s end as well as decoding the encryption on the receiver's end so that it can present the application
layer with unencrypted, readable data.

Finally the presentation layer is also responsible for compressing data it receives from the application layer before
delivering it to layer 5. This helps improve the speed and efficiency of communication by minimizing the amount
of data that will be transferred.
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5. The Session Layer

This is the layer responsible for opening and closing communication between the two devices. The time between
when the communication is opened and closed is known as the session. The session layer ensures that the session
stays open long enough to transfer all the data being exchanged, and then promptly closes the session in order to
avoid wasting resources.

The session layer also synchronizes data transfer with checkpoints. For example, if a 100 megabyte file is being
transferred, the session layer could set a checkpoint every 5 megabytes. In the case of a disconnect or a crash after
52 megabytes have been transferred, the session could be resumed from the last checkpoint, meaning only 50 more
megabytes of data need to be transferred. Without the checkpoints, the entire transfer would have to begin again
from scratch.

4. The Transport Layer

Layer 4 is responsible for end-to-end communication between the two devices. This includes taking data from the
session layer and breaking it up into chunks called segments before sending it to layer 3. The transport layer on
the receiving device is responsible for reassembling the segments into data the session layer can consume.

The transport layer is also responsible for flow control and error control. Flow control determines an optimal speed
of transmission to ensure that a sender with a fast connection doesn‘t overwhelm a receiver with a slow connection.
The transport layer performs error control on the receiving end by ensuring that the data received is complete, and
requesting a retransmission if it isn‘t.

3. The Network Layer

The network layer is responsible for facilitating data transfer between two different networks. If the two devices
communicating are on the same network, then the network layer is unnecessary. The network layer breaks up
segments from the transport layer into smaller units, called packets, on the sender‘s device, and reassembling these
packets on the receiving device. The network layer also finds the best physical path for the data to reach its
destination; this is known as routing.

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2. The Data Link Layer

The data link layer is very similar to the network layer, except the data link layer facilitates data transfer between
two devices on the SAME network. The data link layer takes packets from the network layer and breaks them into
smaller pieces called frames. Like the network layer, the data link layer is also responsible for flow control and
error control in intra-network communication (The transport layer only does flow control and error control for
inter-network communications).

1. The Physical Layer

This layer includes the physical equipment involved in the data transfer, such as the cables and switches. This is
also the layer where the data gets converted into a bit stream, which is a string of 1s and 0s. The physical layer of
both devices must also agree on a signal convention so that the 1s can be distinguished from the 0s on both devices.

How data flows through the OSI model

In order for human-readable information to be transferred over a network from one device to another, the data must
travel down the seven layers of the OSI model on the sending device and then travel up the seven layers on the
receiving end.

For example: Mr. Cooper wants to send Ms. Palmer an email. Mr. Cooper composes his message in an email
application on his laptop and then hits ‗send‘. His email application will pass his email message over to the
application layer, which will pick a protocol (SMTP) and pass the data along to the presentation layer. The
presentation layer will then compress the data and then it will hit the session layer, which will initialize the
communication session.

The data will then hit the sender‘s transportation layer where it will be segmented, then those segments will be
broken up into packets at the network layer, which will be broken down even further into frames at the data link
layer. The data link layer will then deliver those frames to the physical layer, which will convert the data into a
bitstream of 1s and 0s and send it through a physical medium, such as a cable.

Once Ms. Palmer‘s computer receives the bit stream through a physical medium (such as her wifi), the data will
flow through the same series of layers on her device, but in the opposite order. First the physical layer will convert
the bitstream from 1s and 0s into frames that get passed to the data link layer. The data link layer will then

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reassemble the frames into packets for the network layer. The network layer will then make segments out of the
packets for the transport layer, which will reassemble the segments into one piece of data.

The data will then flow into the receiver's session layer, which will pass the data along to the presentation layer
and then end the communication session. The presentation layer will then remove the compression and pass the
raw data up to the application layer. The application layer will then feed the human-readable data along to Ms.
Palmer‘s email software, which will allow her to read Mr. Cooper‘s email on her laptop screen.

Transmission Media is broadly classified into the following types:

 Guided Media: It is also referred to as Wired or Bounded transmission media. ...

 (i) Twisted Pair Cable – ...
 (ii) Coaxial Cable – ...
 (iii) Optical Fibre Cable – ...
 Unguided Media: ...
 (i) Radiowaves – ...
 (ii) Microwaves – ...
 (iii) Infrared –

Classes of transmission media"— Presentation transcript:

1 Classes of transmission media

2 Transmission MediaGuided media, which are those that provide a conduit from one device to another.Examples:
twisted-pair, coaxial cable, optical fiber.Unguided media (or wireless communication) transport electromagnetic

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waves without using a physical conductor. Instead, signals are broadcast through air (or, in a few cases, water),
and thus are available to anyone who has a device capable of receiving them.

3 Guided Media There are three categories of guided media:

Twisted-pair cableCoaxial cableFiber-optic cable

4 Twisted-pair cableTwisted pair consists of two conductors (normally copper), each with its own plastic
insulation, twisted together.Twisted-pair cable comes in two forms: unshielded and shieldedThe twisting helps to
reduce the interference (noise) and crosstalk.

6 UTP and STP

7 Frequency range for twisted-pair cable

8 Unshielded Twisted-pair (UTP) cable

Any medium can transmit only a fixed range of frequencies!UTP cable is the most common type of
telecommunication medium in use today.The range is suitable for transmitting both data and video.Advantages of
UTP are its cost and ease of use. UTP is cheap, flexible, and easy to install.

9 The Electronic Industries Association (EIA) has developed standards to grade UTP.
Category 1. The basic twisted-pair cabling used in telephone systems. This level of quality is fine for voice but
inadequate for data transmission.Category 2. This category is suitable for voice and data transmission of up to
2Mbps.Category 3.This category is suitable for data transmission of up to 10 Mbps. It is now the standard cable
for most telephone systems.Category 4. This category is suitable for data transmission of up to 20 Mbps.Category
5. This category is suitable for data transmission of up to 100 Mbps.

10 Table 7.1 Categories of unshielded twisted-pair cables

CategoryBandwidthData RateDigital/AnalogUse

OR

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Transmission Impairments

Transmission Impairments. The signal received may differ from the signal transmitted. The effect will degrade
the signal quality for analog signals and introduce bit errors for digital signals. There are three types
of transmission impairments: attenuation, delay distortion, and noise.

Transmission Impairment in Data Communication

Last Updated: 06-10-2020

In communication system, analog signals travel through transmission media, which tends to deteriorate the quality
of analog signal, which means that the signal at the beginning of the medium is not the same as the signal at the
end of the medium. The imperfection causes signal impairment. Below are the causes of the impairment.

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Causes of impairment –

 Attenuation – It means loss of energy. The strength of signal decreases with increasing distance which
causes loss of energy in overcoming resistance of medium. This is also known as attenuated signal.
Amplifiers are used to amplify the attenuated signal which gives the original signal back and compensate for
this loss.

 Image Source – aviationchief

Attenuation is measured in decibels(dB). It measures the relative strengths of two signals or one signal at
two different point.

Attenuation(dB) = 10log10(P2/P1)
P1 is the power at sending end and P2 is the power at receiving end.

Some where the decibel is also define in terms of voltage instead of power.In this case because power is
proportional to the square of the voltage the formula is

Attenuation(dB) = 20log10(V2/V1)
V1 is the voltage at sending end and V2 is the voltage at receiving end.

 Distortion – It means changes in the form or shape of the signal. This is generally seen in composite signals
made up with different frequencies. Each frequency component has its own propagation speed travelling
through a medium. And thats why it delay in arriving at the final destination Every component arrive at
different time which leads to distortion. Therefore, they have different phases at receiver end from what they

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had at senders end.

 Noise – The random or unwanted signal that mixes up with the original signal is called noise. There are
several types of noise such as induced noise, crosstalk noise, thermal noise and impulse noise which may
corrupt the signal.
Induced noise comes from sources such as motors and appliances. These devices act as sending antenna and
transmission medium act as receiving antenna. Thermal noise is movement of electrons in wire which
creates an extra signal. Crosstalk noise is when one wire affects the other wire. Impulse noise is a signal
with high energy that comes from lightning or power lines

 To find the theoretical bit rate limit, we need to know the ration .The signal-to-noise ratio is defined as

SNR = AVG SIGNAL POWER / AVG NOISE POWER

Performance Network

Network performance refers to measures of service quality of a network as seen by the customer. There are many
different ways to measure the performance of a network, as each network is different in nature and design.

Performance of a Network

Last Updated: 10-06-2020

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Performance of a network pertains to the measure of service quality of a network as perceived by the user. There
are different ways to measure the performance of a network, depending upon the nature and design of the network.
The characteristics that measure the performance of a network are :

 Bandwidth
 Throughput
 Latency (Delay)
 Bandwidth – Delay Product
 Jitter
BANDWIDTH
One of the most essential conditions of a website‘s performance is the amount of bandwidth allocated to the
network. Bandwidth determines how rapidly the web server is able to upload the requested information. While
there are different factors to consider with respect to a site‘s performance, bandwidth is every now and again the
restricting element.
Bandwidth is characterized as the measure of data or information that can be transmitted in a fixed measure of
time. The term can be used in two different contexts with two distinctive estimating values. In the case of digital
devices, the bandwidth is measured in bits per second(bps) or bytes per second. In the case of analog devices, the
bandwidth is measured in cycles per second, or Hertz (Hz).

Bandwidth is only one component of what an individual sees as the speed of a network. People frequently mistake
bandwidth with internet speed in light of the fact that internet service providers (ISPs) tend to claim that they have
a fast ―40Mbps connection‖ in their advertising campaigns. True internet speed is actually the amount of data you
receive every second and that has a lot to do with latency too.
“Bandwidth” means “Capacity” and “Speed” means “Transfer rate”.
More bandwidth does not mean more speed. Let us take a case where we have double the width of the tap pipe,
but the water rate is still the same as it was when the tap pipe was half the width. Hence, there will be no
improvement in speed. When we consider WAN links, we mostly mean bandwidth but when we consider LAN,
we mostly mean speed. This is on the grounds that we are generally constrained by expensive cable bandwidth
over WAN rather than hardware and interface data transfer rates (or speed) over LAN.

Bandwidth in Hertz : It is the range of frequencies contained in a composite signal or the range of frequencies a
channel can pass. For example, let us consider the bandwidth of a subscriber telephone line as 4 kHz.
Bandwidth in Bits per Seconds : It refers to the number of bits per second that a channel, a link, or rather a network
can transmit. For example, we can say the bandwidth of a fast Ethernet network is a maximum of 100 Mbps, which
means that the network can send 100 Mbps of data.

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Note: There exists an explicit relationship between the bandwidth in hertz and the bandwidth in bits per second.
An increase in bandwidth in hertz means an increase in bandwidth in bits per seconds. The relationship depends
upon whether we have baseband transmission or transmission with modulation.
THROUGHPUT
Throughput is the number of messages successfully transmitted per unit time. It is controlled by available
bandwidth, the available signal-to-noise ratio and the hardware limitations. The maximum throughput of a network
may be consequently higher than the actual throughput achieved in everyday consumption. The terms ‗throughput‘
and ‗bandwidth‘ are often thought of as the same, yet they are different. Bandwidth is the potential measurement
of a link, whereas throughput is an actual measurement of how fast we can send data.
Throughput is measured by tabulating the amount of data transferred between multiple locations during a specific
period of time, usually resulting in the unit of bits per second(bps), which has evolved to bytes per second(Bps),
kilobytes per second(KBps), megabytes per second(MBps) and gigabytes per second(GBps). Throughput may be
affected by numerous factors, such as the hindrance of the underlying analog physical medium, available
processing power of the system components, and end-user behavior. When numerous protocol expenses are taken
into account, the useful rate of the transferred data can be significantly lower than the maximum achievable
throughput.

Let us consider: A highway which has a capacity of moving, say, 200 vehicles at a time. But at a random time
someone notices only, say, 150 vehicles moving through it due to some congestion on the road. As a result, the
capacity is likely to be 200 vehicles per unit time and the throughput is 150 vehicles at a time.
Example:
Input:A network with bandwidth of 10 Mbps can pass only an average of 12, 000 frames
per minute where each frame carries an average of 10, 000 bits. What will be the
throughput for this network?

Output: We can calculate the throughput as-

Throughput = (12, 000 x 10, 000) / 60 = 2 Mbps
The throughput is nearly equal to one-fifth of the bandwidth in this case.
For difference between Bandwidth and Throughput, refer.

LATENCY
In a network, during the process of data communication, latency(also known as delay) is defined as the total time
taken for a complete message to arrive at the destination, starting with the time when the first bit of the message is
sent out from the source and ending with the time when the last bit of the message is delivered at the destination.

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The network connections where small delays occur are called ―Low-Latency-Networks‖ and the network
connections which suffer from long delays are known as ―High-Latency-Networks‖.
High latency leads to creation of bottlenecks in any network communication. It stops the data from taking full
advantage of the network pipe and conclusively decreases the bandwidth of the communicating network. The effect
of the latency on a network‘s bandwidth can be temporary or never-ending depending on the source of the delays.
Latency is also known as a ping rate and measured in milliseconds(ms).

In simpler terms: latency may be defined as the time required to successfully send a packet across a network.

It measured in many ways like: round trip, one way, etc.

It might be affected by any component in the chain which is utilized to vehiculate data, like: workstation, WAN
links, routers, LAN, server and eventually may be limited for large networks, by the speed of light.

Latency = Propagation Time + Transmission Time + Queuing Time + Processing Delay

Propagation Time: It is the time required for a bit to travel from the source to the destination. Propagation time
can be calculated as the ratio between the link length (distance) and the propagation speed over the communicating
medium. For example, for an electric signal, propagation time is the time taken for the signal to travel through a
wire.
Propagation time = Distance / Propagation speed

Example:
Input: What will be the propagation time when the distance between two points is
12, 000 km? Assuming the propagation speed to be 2.4 * 10^8 m/s in cable.

Output: We can calculate the propagation time as-

Propagation time = (12000 * 10000) / (2.4 * 10^8) = 50 ms
Transmission Time: Transmission time is a time based on how long it takes to send the signal down the
transmission line. It consists of time costs for an EM signal to propagate from one side to the other, or costs like
the training signals that are usually put on the front of a packet by the sender, which helps the receiver synchronize
clocks. The transmission time of a message relies upon the size of the message and bandwidth of the channel.
Transmission time = Message size / Bandwidth

Example:
Input:What will be the propagation time and the transmission time for a 2.5-kbyte
message when the bandwidth of the network is 1 Gbps? Assuming the distance between
sender and receiver is 12, 000 km and speed of light is 2.4 * 10^8 m/s.

Output: We can calculate the propagation and transmission time as-

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Propagation time = (12000 * 10000) / (2.4 * 10^8) = 50 ms

Transmission time = (2500 * 8) / 10^9 = 0.020 ms

Note: Since the message is short and the bandwidth is high, the dominant factor is the
propagation time and not the transmission time(which can be ignored).
Queuing Time: Queuing time is a time based on how long the packet has to sit around in the router. Quite
frequently the wire is busy, so we are not able to transmit a packet immediately. The queuing time is usually not a
fixed factor, hence it changes with the load thrust in the network. In cases like these, the packet sits waiting, ready
to go, in a queue. These delays are predominantly characterized by the measure of traffic on the system. The more
the traffic, the more likely a packet is stuck in the queue, just sitting in the memory, waiting.
Processing Delay: Processing delay is the delay based on how long it takes the router to figure out where to send
the packet. As soon as the router finds it out, it will queue the packet for transmission. These costs are
predominantly based on the complexity of the protocol. The router must decipher enough of the packet to make
sense of which queue to put the packet in. Typically the lower level layers of the stack have simpler protocols. If
a router does not know which physical port to send the packet to, it will send it to all the ports, queuing the packet
in many queues immediately. Differently, at a higher level, like in IP protocols, the processing may include making
an ARP request to find out the physical address of the destination before queuing the packet for transmission. This
situation may also be considered as a processing delay.
BANDWIDTH – DELAY PRODUCT
Bandwidth and delay are two performance measurements of a link. However, what is significant in data
communications is the product of the two, the bandwidth-delay product.

Let us take two hypothetical cases as examples.

Case 1: Assume a link is of bandwidth 1bps and the delay of the link is 5s. Let us find the bandwidth-delay product
in this case. From the image, we can say that this product 1 x 5 is the maximum number of bits that can fill the
link. There can be close to 5 bits at any time on the link.

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Case 2: Assume a link is of bandwidth 3bps. From the image, we can say that there can be a maximum 3 x 5 = 15
bits on the line. The reason is that, at each second, there are 3 bits on the line and the duration of each bit is 0.33s.

For both the examples, the product of bandwidth and delay is the number of bits that can fill the link. This
estimation is significant in the event that we have to send data in bursts and wait for the acknowledgment of each
burst before sending the following one. To utilize the maximum ability of the link, we have to make the size of our
burst twice the product of bandwidth and delay. Also, we need to fill up the full-duplex channel. The sender ought
send a burst of data of (2*bandwidth*delay) bits. The sender at that point waits for the receiver‘s acknowledgment
for part of the burst before sending another burst. The amount: 2*bandwidth*delay is the number of bits that can
be in transition at any time.

JITTER
Jitter is another performance issue related to delay. In technical terms, jitter is a ―packet delay variance‖. It can

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simply mean that jitter is considered as a problem when different packets of data face different delays in a network
and the data at the receiver application is time-sensitive, i.e. audio or video data. Jitter is measured in
milliseconds(ms). It is defined as an interference in the normal order of sending data packets. For example: if the
delay for the first packet is 10 ms, for the second is 35 ms, and for the third is 50 ms, then the real-time destination
application that uses the packets experiences jitter.
Simply, jitter is any deviation in, or displacement of, the signal pulses in a high-frequency digital signal. The
deviation can be in connection with the amplitude, the width of the signal pulse or the phase timing. The major
causes of jitter are: electromagnetic interference(EMI) and crosstalk between signals. Jitter can lead to flickering
of a display screen, affects in the capability of a processor in a desktop or server to proceed as expected, introducing
clicks or other undesired impacts in audio signals, and loss of transmitted data between network devices.

Jitter is negative and causes network congestion and packet loss.

Congestion is like a traffic jam on the highway. In a traffic jam, cars cannot move forward at a reasonable
speed. Like the traffic jam, in congestion all the packets come to a junction at the same time. Nothing can get
loaded.

The second negative effect is packet loss. When packets arrive at unexpected intervals, the receiving system is
not able to process the information, which leads to missing information also called ―packet loss‖. This has negative
effects for video viewing. If a video becomes pixelated and is skipping, the network is experiencing jitter. The
result of the jitter is packet loss. When you are playing a game online, the effect of packet loss can be that a player
begins moving around on the screen randomly. Even worse, the game goes from one scene to the next, skipping
over part of the game play.

In the above image, it can be noticed that the time it takes for packets to be sent is not the same as the time in
which he will arrive at the receiver side. One of the packets faces an unexpected delay on its way and is received
after the expected time. This is jitter.

A jitter buffer can reduce the effects of jitter, either in a network, on a router or switch, or on a computer. The
system at the destination receiving the network packets usually receive them from the buffer and not from the
source system directly. Each packet is fed out of the buffer at a regular rate. Another approach to diminish jitter in
case of multiple paths for traffic is to selectively route traffic along the most stable paths, or to always pick the
path that can come closest to the targeted packet delivery rate.

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Attention reader! Don‘t stop learning now. Get hold of all the important CS Theory concepts for SDE interviews
with the CS Theory Course at a student-friendly price and become industry ready.

Week 10 and 11

Transaction Processing Systems

Financial information systems model:

A financial information system is an organized approach to collecting and interpreting information, which is
usually computerized. A well-run financial information system is essential to a business, since managers need
the resulting information to make decisions about how to run the organization.

Financial information system

June 22, 2020

A financial information system is an organized approach to collecting and interpreting information, which is
usually computerized. A well-run financial information system is essential to a business, since managers need
the resulting information to make decisions about how to run the organization. This system can be used in many
ways, including the following:

 Ensure that there are sufficient funds on hand to pay for obligations as they come due for payment

 Put excess funds to use in appropriate and reasonably liquid investments

 Determine which customers, products, product lines and subsidiaries are the most and least profitable
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 Locate the bottleneck areas within the business

 Determine the maximum amount of funds that can safely be distributed to investors in the form of dividends

 Determine the maximum debt load that the organization can sustain

There are a number of ways in which to extract information from a financial information system, including
structured reports that are run on a regular basis, ratio analyses, cash forecasts, and what-if analyses. A report
writer module is used to construct the more commonly-used reports, while less frequently used data is
downloaded through a query system.

______________---------------------------------------------------------------------------------

Submit

Characteristics of functional information systems

TABLE 2-1 Characteristics of Information Processing Systems

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Four major types of information system‘s

Types of Information System: TPS, DSS & Pyramid Diagram

A typical organization is divided into operational, middle, and upper level. The information requirements for users
at each level differ. Towards that end, there are number of information systems that support each level in an
organization.

This tutorial will explore the different types of information systems, the organizational level that uses them and
the characteristics of the particular information system.

In this tutorial, you will learn the different Classification of Information.

 Pyramid Diagram of Organizational levels and information requirements

 Transaction Processing System (TPS)
 Management Information System (MIS)
 Decision Support System (DSS)
 Artificial intelligence techniques in business
 Online Analytical Processing (OLAP)

Pyramid Diagram of Organizational levels and information requirements

Understanding the various levels of an organization is essential to understand the information required by the users
who operate at their respective levels.

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The following diagram illustrates the various levels of a typical organization.

Operational management level

The operational level is concerned with performing day to day business transactions of the organization.

Examples of users at this level of management include cashiers at a point of sale, bank tellers, nurses in a hospital,
customer care staff, etc.

Users at this level use make structured decisions. This means that they have defined rules that guides them while
making decisions.

For example, if a store sells items on credit and they have a credit policy that has some set limit on the borrowing.
All the sales person needs to decide whether to give credit to a customer or not is based on the current credit
information from the system.

Tactical Management Level

This organization level is dominated by middle-level managers, heads of departments, supervisors, etc. The users
at this level usually oversee the activities of the users at the operational management level.

Tactical users make semi-structured decisions. The decisions are partly based on set guidelines and judgmental
calls. As an example, a tactical manager can check the credit limit and payments history of a customer and decide
to make an exception to raise the credit limit for a particular customer. The decision is partly structured in the sense
that the tactical manager has to use existing information to identify a payments history that benefits the organization
and an allowed increase percentage.

Strategic Management Level

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This is the most senior level in an organization. The users at this level make unstructured decisions. Senior level
managers are concerned with the long-term planning of the organization. They use information from tactical
managers and external data to guide them when making unstructured decisions.

Transaction Processing System (TPS)

Transaction processing systems are used to record day to day business transactions of the organization. They are
used by users at the operational management level. The main objective of a transaction processing system is to
answer routine questions such as;

 How printers were sold today?

 How much inventory do we have at hand?
 What is the outstanding due for John Doe?

By recording the day to day business transactions, TPS system provides answers to the above questions in a timely
manner.

 The decisions made by operational managers are routine and highly structured.
 The information produced from the transaction processing system is very detailed.

For example, banks that give out loans require that the company that a person works for should have a
memorandum of understanding (MoU) with the bank. If a person whose employer has a MoU with the bank applies
for a loan, all that the operational staff has to do is verify the submitted documents. If they meet the requirements,
then the loan application documents are processed. If they do not meet the requirements, then the client is advised
to see tactical management staff to see the possibility of signing a MoU.

Examples of transaction processing systems include;

 Point of Sale Systems – records daily sales

 Payroll systems – processing employees salary, loans management, etc.
 Stock Control systems – keeping track of inventory levels
 Airline booking systems – flights booking management

Management Information System (MIS)

Management Information Systems (MIS) are used by tactical managers to monitor the organization's current
performance status. The output from a transaction processing system is used as input to a management information
system.

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The MIS system analyzes the input with routine algorithms i.e. aggregate, compare and summarizes the results to
produced reports that tactical managers use to monitor, control and predict future performance.

For example, input from a point of sale system can be used to analyze trends of products that are performing well
and those that are not performing well. This information can be used to make future inventory orders i.e. increasing
orders for well-performing products and reduce the orders of products that are not performing well.

Examples of management information systems include;

 Sales management systems – they get input from the point of sale system
 Budgeting systems – gives an overview of how much money is spent within the organization for the short
and long terms.
 Human resource management system – overall welfare of the employees, staff turnover, etc.

Tactical managers are responsible for the semi-structured decision. MIS systems provide the information needed
to make the structured decision and based on the experience of the tactical managers, they make judgement calls
i.e. predict how much of goods or inventory should be ordered for the second quarter based on the sales of the first
quarter.

Decision Support System (DSS)

Decision support systems are used by senior management to make non-routine decisions. Decision support systems
use input from internal systems (transaction processing systems and management information systems) and
external systems.

The main objective of decision support systems is to provide solutions to problems that are unique and change
frequently. Decision support systems answer questions such as;

 What would be the impact of employees' performance if we double the production lot at the factory?
 What would happen to our sales if a new competitor entered the market?

Decision support systems use sophisticated mathematical models, and statistical techniques (probability, predictive
modeling, etc.) to provide solutions, and they are very interactive.

Examples of decision support systems include;

 Financial planning systems – it enables managers to evaluate alternative ways of achieving goals. The
objective is to find the optimal way of achieving the goal. For example, the net profit for a business is
calculated using the formula Total Sales less (Cost of Goods + Expenses). A financial planning system will

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enable senior executives to ask what if questions and adjust the values for total sales, the cost of goods, etc.
to see the effect of the decision and on the net profit and find the most optimal way.
 Bank loan management systems – it is used to verify the credit of the loan applicant and predict the
likelihood of the loan being recovered.

Artificial intelligence techniques in business

Artificial intelligence systems mimic human expertise to identify patterns in large data sets. Companies such as
Amazon, Facebook, and Google, etc. use artificial intelligence techniques to identify data that is most relevant to
you.

Let's use Facebook as an example, Facebook usually makes very accurate predictions of people that you might
know or went with to school. They use the data that you provide to them, the data that your friends provide and
based on this information make predictions of people that you might know.

Amazon uses artificial intelligence techniques too to suggest products that you should buy also based on what you
are currently getting.

Google also uses artificial intelligence to give you the most relevant search results based on your interactions with
Google and your location.

These techniques have greatly contributed in making these companies very successful because they are able to
provide value to their customers.

Online Analytical Processing (OLAP)

Online analytical processing (OLAP) is used to query and analyze multi-dimensional data and produce information
that can be viewed in different ways using multiple dimensions.

Let's say a company sells laptops, desktops, and Mobile device. They have four (4) branches A, B, C and D. OLAP
can be used to view the total sales of each product in all regions and compare the actual sales with the projected
sales.

Each piece of information such as product, number of sales, sales value represents a different dimension

The main objective of OLAP systems is to provide answers to ad hoc queries within the shortest possible time
regardless of the size of the datasets being used.

Transaction processing systems

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A Transaction Processing System is a set of information which processes the data transaction in
database system that monitors transaction programs. The system is useful when something is sold over the
internet. It allows for a time delay between when an item is being sold to when it is actually sold.

Transaction Process System (TPS)

Last Updated: May 3, 2018

Definition - What does Transaction Process System (TPS) mean?

A transaction process system (TPS) is an information processing system for business transactions involving the
collection, modification and retrieval of all transaction data. Characteristics of a TPS include performance,
reliability and consistency.

TPS is also known as transaction processing or real-time processing.

Techopedia explains Transaction Process System (TPS)

A transaction process system and transaction processing are often contrasted with a batch process system and batch
processing, where many requests are all executed at one time. The former requires the interaction of a user, whereas
batch processing does not require user involvement. In batch processing the results of each transaction are not
immediately available. Additionally, there is a delay while the many requests are being organized, stored and
eventually executed. In transaction processing there is no delay and the results of each transaction are immediately
available. During the delay time for batch processing, errors can occur. Although errors can occur in transaction
processing, they are infrequent and tolerated, but do not warrant shutting down the entire system.

To achieve performance, reliability and consistency, data must be readily accessible in a data warehouse, backup
procedures must be in place and the recovery process must be in place to deal with system failure, human failure,
computer viruses, software applications or natural disasters.

Transaction process cycle

Featured snippet from the web
Transaction Processing cycle:- Transaction. ... Transaction processing systems generally go through a five-
stage cycle of 1) Data entry activities 2) Transaction processing activities 3) File and database processing 4)
Document and report generation 5) Inquiry processing activities.

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Transaction processing cycle

JULY 29, 2020 BY BADARUMOHAMMED

Transaction processing systems capture and processes business transactions. Then they update organizational files
and database and produce a variety of information for internal and external use. Transaction processing systems
generally consist of five stage cycle.

 Data entry

The input activity in transaction processing systems involves a data entry processes. In this processes, data is
captured, or collected by recording, coding, and editing activities. Then the data may be converted to a form that
can be entered into a computer system.

 Transaction processing

Transaction processing systems process data in two online processing, batch processing and real time processing.

 File and database processing

File and database processing are the basic activities of transaction processing systems. These are also known as
file and database maintenance which means that an organizations files and database must be maintained by its
transaction processing systems so that they are always correct and up-to-date.

 Document and report generation

The final stage in the transaction processing cycle is the generation of information products such as documents
and reports.
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 Inquiry processing

Many transaction processing allows to use internet and web browsers or database management query languages to
make inquiries and receive responses concerning the results of transaction processing activity. responses are
displayed in a variety of pre specified formats or screen.

Objectives of TPS

Organizations expect their TPS to accomplish a number of specific objectives such as: Process data generated by
and about transactions: The primary objective of TPS is to capture, gather, process, and store transactions and to
produce useful documents related to routine business activities to managers

OBJECTIVE OF TPS

 Process data generated by and about transactions

 Maintain a high degree of accuracy

 Ensure data and information integrity and accuracy

 Produce timely documents and reports

 Increase labor efficiency

 Help provide increased and enhanced service

 Help build and maintain customer loyalty

 Achieve competitive advantage

MAJOR CHARACTERISTICS OF TPS

 Large amounts of data are processed.

 The sources of data are mostly internal, and the output is intended mainly for an internal audience.

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 The TPS processes information on a regular basis: daily, weekly, monthly, etc.

 Large storage (database) capacity is required.

 High processing speed is needed due to the high volume.

 TPS basically monitors and collects past data.

 Input and output data are structured (i.e., standardized).

 Low computation complexity is usually evident in TPS.

 A high level of accuracy, data integrity, and security is needed.

 High reliability is required.

 Inquiry processing is a must.

Purpose of TPS

Process data generated by and about transactions: The primary objective of TPS is to capture, gather, process, and
store transactions and to produce useful documents related to routine business activities to managers

TPS Structure

A Transaction Processing System (TPS) is a type of information system that collects, stores, modifies and retrieves
the data transactions of an enterprise.

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A transaction process system (TPS) is an information processing system for business transactions involving the
collection, modification and retrieval of all transaction data. Characteristics of a TPS include performance,
reliability and consistency. TPS is also known as transaction processing or real-time processing.

TPS Method

Quick Definition. Synonymous with Lean Manufacturing and Lean Production, the Toyota Production System is
a manufacturing methodology developed over a 20 year period by Toyota of Japan. In the most simplistic definition
of TPS all manufacturing activities are divided into adding value or creating waste.

Or

It is an original manufacturing philosophy that aims to eliminate waste and achieve the best possible efficiency –
what is often called a ―lean‖ or ―just-in-time‖ system. TPS is based on two concepts: jidoka and just-in-time

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TPS Functions

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 system

Order Processing Systems

Order processing system

Featured snippet from the web

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An order processing system captures order data from customer service employees or from customers directly,
stores the data in a central database and sends order information to the accounting and shipping departments, if
applicable.

Week 12

Data base approaches

Advantages of Database Management System

 Reducing Data Redundancy. The file based data management systems contained multiple files that were stored in
many different locations in a system or even across multiple systems. ...
 Sharing of Data. ...

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 Data Integrity. ...

 Data Security. ...
 Privacy. ...
 Backup and Recovery. ...
 Data Consistency.

Database queries

A database query is a request for data from a database. Usually the request is to retrieve data;
however, data can also be manipulated using queries. The data can come from one or more tables, or even
other queries.

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Querying a Database

 Adding Data


 Relational Database Design


In database terms, a query is used to retrieve data from the database.

Queries are one of the things that make databases so powerful. A "query" refers to the action of retrieving data
from your database. Usually, you will be selective with how much data you want returned. If you have a lot of data
in your database, you probably don't want to see everything. More likely, you'll only want to see data that fits a
certain criteria.

For example, you might only want to see how many individuals in your database live in a given city. Or you might
only want to see which individuals have registered with your database within a given time period.

As with many other tasks, you can query a database either programatically or via a user interface.

Option 1: Programatically

The way to retrieve data from your database with SQL is to use the SELECT statement.

Using the SELECT statement, you can retrieve all records...

...or just some of the records:

The 2nd query only returns records where the value in the ArtistId column equals 1. So if there are say, three
albums belonging to artist 1, then three records would be returned.

SQL is a powerful language and the above statement is very simple. You can use SQL to choose which columns
you want to display, you could add further criteria, and you can even query multiple tables at the same time. If
you're interested in learning more about SQL, be sure to check out the SQL tutorial after you've finished this one!

Option 2: User Interface

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You might find the user interface easier to generate your queries, especially if they are complex.

Database management systems usually offer a "design view" for your queries. Design view enables you to pick
and choose which columns you want to display and what criteria you'd like to use to filter the data.

Designing a Query

Here's an example of a query in Design View in Microsoft Access.

When you run a query like this, the database system actually uses SQL (behind the scenes) to generate the
query.

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


Query Results

Regardless of the method you use to query the database, the results will usually be displayed in tabular
format.

Converting business question to queries

Normalization

Normalization is a systematic approach of decomposing tables to eliminate data redundancy(repetition) and

undesirable characteristics like Insertion, Update and Deletion Anomalies. It is a multi-step process that puts data
into tabular form, removing duplicated data from the relation tables.

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Normalization

o Normalization is the process of organizing the data in the database.

o Normalization is used to minimize the redundancy from a relation or set of relations. It is also used to
eliminate the undesirable characteristics like Insertion, Update and Deletion Anomalies.

o Normalization divides the larger table into the smaller table and links them using relationship.
o The normal form is used to reduce redundancy from the database table.

Types of Normal Forms

There are the four types of normal forms:

Normal Description
Form

1NF A relation is in 1NF if it contains an atomic value.

2NF A relation will be in 2NF if it is in 1NF and all non-key attributes are
fully functional dependent on the primary key.

3NF A relation will be in 3NF if it is in 2NF and no transition dependency

exists.

4NF A relation will be in 4NF if it is in Boyce Codd normal form and has no
multi-valued dependency.

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5NF A relation is in 5NF if it is in 4NF and not contains any join dependency
and joining should be lossles

Database administration

refers to the whole set of activities performed by a database administrator to ensure that a database is always
available as needed. Other closely related tasks and roles are database security, database monitoring and
troubleshooting, and planning for future growth.

Database administration refers to the whole set of activities performed by a database administrator to ensure that
a database is always available as needed. Other closely related tasks and roles are database security, database
monitoring and troubleshooting, and planning for future growth.

Database administration is an important function in any organization that is dependent on one or more databases.

Techopedia explains Database Administration

The database administrator (DBA) is usually a dedicated role in the IT department for large organizations.
However, many smaller companies that cannot afford a full-time DBA usually outsource or contract the role to a
specialized vendor, or merge the role with another in the ICT department so that both are performed by one person.

The primary role of database administration is to ensure maximum up time for the database so that it is always
available when needed. This will typically involve proactive periodic monitoring and troubleshooting. This in turn
entails some technical skills on the part of the DBA. In addition to in-depth knowledge of the database in question,
the DBA will also need knowledge and perhaps training in the platform (database engine and operating system)
on which the database runs.

A DBA is typically also responsible for other secondary, but still critically important, tasks and roles. Some of
these include:

 Database Security: Ensuring that only authorized users have access to the database and fortifying it against
any external, unauthorized access.
 Database Tuning: Tweaking any of several parameters to optimize performance, such as server memory
allocation, file fragmentation and disk usage.
 Backup and Recovery: It is a DBA's role to ensure that the database has adequate backup and recovery
procedures in place to recover from any accidental or deliberate loss of data.

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 Producing Reports from Queries: DBAs are frequently called upon to generate reports by writing queries,
which are then run against the database.

It is clear from all the above that the database administration function requires technical training and years of
experience. Some companies that offer commercial database products, such as Oracle DB and Microsoft's SQL
Server, also offer certifications for their specific products. These industry certifications, such as Oracle Certified
Professional (OCP) and Microsoft Certified Database Administrator (MCDBA), go a long way toward assuring
organizations that a DBA is indeed thoroughly trained on the product in question. Because most relational database
products today use the SQL language, knowledge of SQL commands and syntax is also a valuable asset for today's
DBAs.

Database security refers to the various measures organizations take to ensure their databases are protected from
internal and external threats. Database security includes protecting the database itself, the data it contains,
its database management system, and the various applications that access i

What is database security?

Database security encompasses a range of security controls designed to protect the Database Management System
(DBMS). The types of database security measures your business should use include protecting the underlying
infrastructure that houses the database such as the network and servers), securely configuring the DBMS, and the
access to the data itself.

Database security controls

Database security encompasses multiple controls, including system hardening, access, DBMS configuration, and
security monitoring. These different security controls help to manage the circumventing of security protocols.

System hardening and monitoring

The underlying architecture provides additional access to the DBMS. It is vital that all systems are patched
consistently, hardened using known security configuration standards, and monitored for access, including insider
threats.

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DBMS configuration

It is critical that the DBMS be properly configured and hardened to take advantage of security features and limit
privileged access that may cause a misconfiguration of expected security settings. Monitoring the DBMS
configuration and ensuring proper change control processes helps ensure that the configuration stays consistent.

Authentication

Database security measures include authentication, the process of verifying if a user‘s credentials match those
stored in your database, and permitting only authenticated users access to your data, networks, and database
platform.

Access

A primary outcome of database security is the effective limitation of access to your data. Access controls
authenticate legitimate users and applications, limiting what they can access in your database. Access includes
designing and granting appropriate user attributes and roles and limiting administrative privileges.

Database auditing

Monitoring (or auditing) actions as part of a database security protocol delivers centralized oversight of your
database. Auditing helps to detect, deter, and reduce the overall impact of unauthorized access to your DBMS.

Backups

A data backup, as part of your database security protocol, makes a copy of your data and stores it on a separate
system. This backup allows you to recover lost data that may result from hardware failures, data corruption, theft,
hacking, or natural disasters.

Encryption

Database security can include the secure management of encryption keys, protection of the encryption system,
management of a secure, off-site encryption backup, and access restriction protocols.

Application security

Database and application security framework measures can help protect against common known attacker exploits
that can circumvent access controls, including SQL injection.

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Why is database security important?

Safeguarding the data your company collects and manages is of utmost importance. Database security can guard
against a compromise of your database, which can lead to financial loss, reputation damage, consumer confidence
disintegration, brand erosion, and non-compliance of government and industry regulation.

Database security safeguards defend against a myriad of security threats and can help protect your enterprise from:
 Deployment failure
 Excessive privileges
 Privilege abuse
 Platform vulnerabilities
 Unmanaged sensitive data
 Backup data exposure
 Weak authentication
 Database injection attacks
Closed Vs Open Systems

An open system is one that interacts with its environment and thus exchanges information, material, or energy
with the environment, including random and undefined inputs. A closed system is one, which doesn't interact
with its environment

Differentiate between Open and Closed Systems

By Dinesh Thakur

An open system is one that interacts with its environment and thus exchanges information, material, or energy
with the environment, including random and undefined inputs. Open systems are adaptive in nature as they tend
to react with the environment in such a way organizing‘, in the sense that they change their continued existence.

Such systems are ‗self organizing‘, because they change their organization in response to changing conditions. A
closed system is one, which doesn‘t interact with its environment. Such systems, in business world, are rare. Thus
the systems that are relatively isolated from the environment but not completely closed are termed closed systems.

Redundant Array of Independent Disks

RAID (redundant array of independent disks) is a way of storing the same data in different places on multiple
hard disks or solid-state drives to protect data in the case of a drive failure. There are different RAID levels,
however, and not all have the goal of providing redundancy.

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What is RAID (Redundant Array of Inexpensive Disks)

RAID is a storage technology based acronym which stands for Redundant Array of Independent Disks or
Redundant array of Inexpensive disks. The letter ―I‖ stands for two words, which are mentioned above; but the
term ―Independent‖ sounds more appropriate and is far or less subjective to it and depends on the context of the
conversation.
From the layman‘s point of view, RAID can be termed as a confusing technical phrase, but if subjected to a good
explanation, it can be as simple as it is. RAID is configuration of two or multiple hard drives to work as a single
unit on a single computer system. Although, the configuration may vary, as per the intended use, but the main
concept of it is to provide high- availability installation, which has to isolate the whole data storage from situations
like system failures or infrastructure failures.
In the world of Information Technology, the term ―high-availability‖ is obtained by achieving redundancy. This
can be done, by deploying RAID arrays into the data center, which reduce the likelihood of system failures,
occurring due to hard drive failures. This prevents the properly configured disk arrays from failing and so, its
general operations will also be unaffected making users of data center, never experience downtime.
In this article, below mentioned technological terms will be repeated occasionally and so to simplify things to the
reader, the terms have been explained in brief.
Redundancy – Redundancy refers to having numerous components which offer the same function, so that the
system functioning can continue in the event of partial system failure.

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Fault Tolerance – fault tolerance means, in the event of a component failure, the system is designed in such a way
that a backup component will be available, in order to prevent loss of service.
Types of RAID
RAID technology deployment is possible by using a software as well as hardware.
Software Raid vs. Hardware Raid
Software RAID
– Most of the popular operating systems are coming up with software raid support and so, the cost of deployment
decreases a bit. However, software raid works on partition level and so it increases complexity if the number of
partitions is increased and at this stage hardware raid comes into affect. In case of power failure, software raid fails
completely, while in hardware raid, the battery back up continues with the pending writes. The software raid offers
high performance levels in Raid 0 and Raid 1 levels. But as the levels increase and in nested raid levels, the
performance decreases as it is dependent on CPU performance and current load. Hot swapping of disks is supported
in software raid, which means replacing of failed hard disk with a new one. Software RAID offers hot spare
support, where spare hard drives are installed in raid arrangement, which stay inactive until an active drive fails
and then automatically takes on the working of the fault disk to reduce downtime. Software Raid usage is seen in
no vendor lock-ins, single server workstations, in low cost solutions and is better for RAID 0 and RAID 1 levels
and is ideal for home and small businesses.
Hardware RAID
– The cost factor is a bit high, if an enterprise deploys hardware raid in its data center. But the factors such as
complexity in management are low and the back up caching is also available in this raid through battery backup.
The performance of hardware RAID is excellent and it supports disk hot swapping and hot spare support. Hardware
Raid supports higher write throughputs and offers faster reconstruction of data loss. Ideal for all mission critical
and performance oriented solutions.
Data storage in RAID architecture
It is a fact that RAID technology tricks the computer system into believing that it is a single hard disk, but the fact
is that it distributes the reproduced data across several hard disk drives. The distribution of data is done in two
ways, which are two generalized concepts. Mirroring is one of the ways, which offers replication of data on
another disk and the second concept is striping, where splitting of reproduced data takes place across the available
disk drives. Parity is a concept, which is also streamlined into RAID technology as another way of storage method.
It involves saving of information across the disk arrays, so that, the same information can be used to recreate or
reconstruct the affected data, which is otherwise filled with errors or data loss, when disk drive fails.
The concept of redundancy comes into affect, as soon as the disk drives fail, while rest of the disk arrays continue
to function. But the wise duty of the IT administrator is to solve the disk drive failure, as long as it is diminutive.
Its prolonged existence can make other drives vulnerable to failures. This can be done, by replacing the faulty
drives, without affecting the whole system and this terminology is called as hot swapping. But this type of
replacement flexibility, without affecting the whole system working is seen in only certain types of RAID types.

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So, the data recovery strictly depends on the RAID level, which is deployed on the data center. While planning the
RAID architecture, the hot swapping technique must be given utmost importance, in order to replace the faulty
drives without affecting the whole working system.
In order to ensure foolproof redundancy, enterprises opt for Nested RAID levels which constitute the combination
of two or more RAID configurations that offer advantages of both the methods. A paradigm is RAID 10, which is
a combination of RAID level 1 and RAID level 0, where RIAD level 1 configurations works on the RAID 0
technique.
Requirements for Deploying RAID
Hardware
– RAID can be deployed on hard drives which include SATA, ATA and SCSI. The number of hard disks, required
will be depending on selection of the RAID level configuration. It is always recommended for the use of matched
hard drives of same capacities. It is a fact that most of the arrays will be using the capacity of the smallest drive.
So, if a 250GB capacity drive is deployed in the RAID configuration, which has an 80GB hard disk drive, then the
170GB will be waste and will only be useful in JBOD Or just a bunch of disk raid level. Moreover, the hardware
drives must not only match in capacities, they must in terms of writing speeds, transfer rates and so on. RAID
controllers are deployed for SCSI, SATA and ATA hard disks and some systems also allow RAID arrays to be
operated across controllers of different formats.
For those who are ignorant about RAID technology, here is a detail. RAID controller is a hardware, through which
all the hard drives are connected and this is responsible for processing of data. It is similar to the motherboard
arrangement where typical drive connections are found.
The requirement for a hot swappable drive bay is also essential, in conditions, where a hard disk drive turns faulty
and needs to be replaced. It allows the replacement of failed hard drive from a live system by the simple method
of unlocking the drive cage out of the case and then sliding in the locked into a the place.
Software requirements
– RAID technology can be deployed on any modern operating system, if it has all appropriate drivers provided by
manufacturers of RAID controllers. The operating system and the software needs should be upgraded from the
beginning and prior to this step, all the data must be backed up, so that it can be restored on to the newly laid RAID
technology. If the RAID array is specifically maintained for data storage and not for any other operating system
run, then things get simple.
RAID Level Configurations
There are almost dozen RAID level schemes prevailing in RAID technology. But below only the most prevailing
RAID level schemes are summarized below.
RAID Level 0
– This RAID level 0 configuration doesn‘t provide redundancy and so it doesn‘t exactly fit into the arrays of RAID
technology. In this RAID level 0, two disks are used to write data to two drives in an alternating way, which is
striping. This can be explained with a paradigm. Let us assume, ten chunks of data say 1,2,3,4,5,6,7,8,9,10. From

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it 1, 3,5,7,9 will be written to drive one and the rest i.e. 2, 4, 6,8,10 will be written to second drive and that too in
sequential order. This splitting of data will allow doubling of speed of a single hard drive and will also enhance its
performance. But if one drive fails in this array, then data loss is incurred. The capacity of Raid 0 is equal to the
whole sum of the individual drives. That is, if two 80GB hard disks will be deployed into RAID, then the total
capacity will be around 160GB of the RAID 0 level.
RAID Level 1
– From this RAID level 1, the redundancy factor becomes influential. Minimum use of hard drives in this level
will be two and the data is written to both drives. It is like cloning or mirroring the data of the first drive to the
second one and making drive one identical to the second one. If the first drive fails, then the data backup will be
available from the drive 2. In this RAID level, the actual capacity of RAID 1 level array will be equal to half the
capacity of the sum of individual drives. That is, if two 160GB drives are deployed, then the total capacity will be
just 160GB only.
RAID Level 2
– In this form of RAID data is striped in a way that each sequential bit is on different drive. Each data word is
having its own hamming code and on each read, the Hamming code verifies the data accuracy and also corrects
the single disk errors. In this level, the array can recover from multiple and simultaneous hard drive failures.
Minimum two drives are required in this RAID level 2.
RAID Level 3
– In this level of RAID a minimum of three drives is required for implementation. The data block is split and is
written on data disks. Stripe parity is generated on writes and this writing is recorded on parity disks and can be
checked on reads. A raid 3 array can recover from hard drive failures and is deployed in environments where
applications need high speed throughputs, which can be video production, video editing and live streaming. In this
level the read/write speed is high.
RAID Level 4
– In this RAID level the requirement three drives is seen and in this level, the entire block is written on a disk.
Parity is generated in writes and recorded on parity disks and checked on reads. This level of RAID has high
reading speeds and is highly efficient.
RAID Level 5
– In this RAID 5 level, three drives are implemented and data block is written on a data disks and parity which is
generated from writes is distributed onto three drives and is checked on reads. In the situation of drive failure, the
reads can be calculated from the distributed parity and the drive failure is masked from the user. But in situations
of single drive failure, the performance of the entire array gets depleted.
RAID Level 6
– This level of raid 6 (corrected as RAID 6), offers fault tolerance in case of two drive failures and still the system
functions. In this level, block level stripping is observed along with double distributed parity. In case of data
recovery, the time for recovery takes place on the size of the disk drive. Double parity offers additional time for

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rebuilding the array without the data being at risk if single additional drive fails, while the data recovery through
rebuild is happening.
Now come the nested levels of RAID which are also known as Hybrid raid levels, structured by the conjugation
of two RAID levels.
RAID Level 10 (1+0)
– In this level of RAID minimum requirement of drives is 4. RAID 10 will also have fault tolerance and will also
have redundancy. It will have the splitting of data feature seen in RAID 0 level and will also have mirroring feature
seen in raid 1 level. RAID 10 array can recover from multiple and simultaneous hard drive failures and is ideal for
high end server applications.
RAID Level 0+1
– This level of RAID requires a minimum of 4 drives and multiple drive failures can be handled by this raid level.
This level is a combination of raid 0 and raid 1 level and is used in imaging applications meant file servers. It offers
high performance and reduces emphasis on reliability. In the raid 0+1 a second striped set to mirror the primary
set is created The array continues to operated with one or more drives failure in mirror set.
JBOD RAID
– This is an abbreviation of just a bunch of disks and is officially known as spanning. In this JBOD raid level, the
array of hard disks is made to appear as a single disk system. But there is no raid level implementation on it, which
results in lack of fault tolerance.
RAID Server Failures and RAID Recovery Software
RAID technology is to offer redundancy for the stored data, but sometimes the servers, which are having RAID as
protection, can also face failures and data loss issues. This is possible by the following ways-
 Hardware conflicts.
 Malware attacks caused by software corruption or operating system upgrades.
 Addition of incompatible hard drives.
 The whole configuration setup gets damaged or corrupted.
 Multiple hard drive failures at a time.
 Server crashes, which doesn‘t remount the array or volumes.
 RAID controller failure or when configuration is changed.

Data Dictionary

A data dictionary, or metadata repository, as defined in the IBM Dictionary of Computing, is a "centralized
repository of information about data such as meaning, relationships to other data, origin, usage, and format". Oracle
defines it as a collection of tables with metadata.

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A data dictionary contains metadata i.e data about the database. The data dictionary is very important as it contains
information such as what is in the database, who is allowed to access it, where is the database physically stored
etc. The users of the database normally don't interact with the data dictionary, it is only handled by the database
administrators.

The data dictionary in general contains information about the following −

 Names of all the database tables and their schemas.

 Details about all the tables in the database, such as their owners, their security constraints, when they were
created etc.
 Physical information about the tables such as where they are stored and how.
 Table constraints such as primary key attributes, foreign key information etc.
 Information about the database views that are visible.

This is a data dictionary describing a table that contains employee details.

Field Name Data Type Field Size for display Description Example

Employee Integer 10 Unique ID of each employee 1645000001

Number

Name Text 20 Name of the employee David Heston

Date of Birth Date/Time 10 DOB of Employee 08/03/1995

Phone Number Integer 10 Phone number of employee 6583648648

The different types of data dictionary are −

Active Data Dictionary

If the structure of the database or its specifications change at any point of time, it should be reflected in the data
dictionary. This is the responsibility of the database management system in which the data dictionary resides.

So, the data dictionary is automatically updated by the database management system when any changes are made
in the database. This is known as an active data dictionary as it is self updating.

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Passive Data Dictionary

This is not as useful or easy to handle as an active data dictionary. A passive data dictionary is maintained
separately to the database whose contents are stored in the dictionary. That means that if the database is modified
the database dictionary is not automatically updated as in the case of Active Data Dictionary.

So, the passive data dictionary has to be manually updated to match the database. This needs careful handling or
else the database and data dictionary are out of sync.

Week 13

Office automation systems

Introduction

Advantages of Office Automation Systems:

 Manipulation and storage of data: Storage of data means saving all confidential and important documents and
records related to the office. ...
 Management of data: ...
 Exchanging data: ...
 More accuracy: ...

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 Saves more time and even more resources: ...

 Reduces all costs:

Types of Office Automation

Types of functions integrated by office automation systems include (1) electronic publishing; (2) electronic
communication; (3) electronic collaboration; (4) image processing; and (5) office management. At the heart of
these systems is often a local area network (LAN) .

Types of Office Automation Tools :

Finance and Budgeting

Budgeting automation tools provide you with forward-thinking and planning on financial matters with more
transparency.

It weighs out every available resource with an integrated business planning approach. An automation tool crunches
your database and serves you with business insights for strategic and functional planning.

With a proper automation tool, your organization‘s finance department can establish and layout your long- and
short-term flexible financial goals adequately.

Some budgeting, planning, and forecasting automation solutions are:

1. Float
2. FreshBooks
3. PlanGuru
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4. Scoro
5. Xero

Recruitment
Automation in the HR department provides faster and accurate talent recognition and recruits without any biases.
You can automate job opening posts and evaluate available candidates.

It furthermore, upholds your reputation and unlocks a rich talent pool while creating a favorable candidate
experience.

Depending upon the requirement, an automation tool may also consist of a candidate tracking and assessment
system. It would even help in improved relationship management with applicants and interview scheduling.

5 office automation tools to help you with recruitment and selection process:

1. Beamery
2. HireHive
3. Indeed
4. Recruiterbox
5. Zoho Recruit

Also Read: 7 Ways to Improve the Recruitment and Selection Process

Cloud Infrastructure Automation

Having a sound cloud infrastructure automation system reduces toil and operational costs.

Even before the cloud migration, all of your system and network needs to be perfectly aligned to its configurational
needs.

You can free up your resources and time by automating the provisioning and configuration of any type of cloud
infrastructure, followed by proper management.

1. Ansible
2. Appcore
3. AWS CloudFormation
4. Kubernetes
5. Puppet

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Security
Securing your data from cyber-attacks, as well as any internal threats, is essential to protect any crucial information
from abuse.

So, to protect your office credentials and other data from malicious insiders and outsiders, it would be a wise
decision to invest in a sound security system for the office.

The vast data accumulated by a company can become a major security threat if left unattended.

With a security automation tool on hands, your security analysts do not need to perform any repetitive, time-
consuming actions, and thus can contribute their time on strategical, value-adding tasks.

Any type of negligence or vulnerabilities from employees or contractors becomes easily traceable and helps
address the issue on time.

Automation removes any possibility of a human error. It furthermore determines the security action needed to be
taken for any problems in the office workflow.

1. Duo
2. Intruder
3. Kali Linux
4. SolarWinds Security Event Manager
5. Splunk

Task/Project Management
The distribution of work and resources and the perfect skill sets necessary for a particular task becomes an added
time hoarding event, for the managers.

Automation evaluates, manages, and optimizes the procedures before and even during the process. Task
automation provides automated workflow data capture and better work collaboration add-ons.

These tools analyze the available metadata and determine a straightforward solution to the current business
processes. It also reports on how the team is performing on their individually assigned jobs.

1. ClickUp
2. Flow
3. com
4. Trello
5. Zapier

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Also Read: Top 5 IFTTT Apps That Could Boost Your Business

Procurement
Procurement automation frees your employees of redundant tasks and puts them to work that matches their skill
set.

It balances the staffing costs while providing transparency, a sufficient amount of time for strategic tasks,
streamlines spend management, healthy supplier relationships while looking out for any possible improvements
rigorously.

1. Coupa
2. e-Procure
3. Precoro
4. Procurify
5. Tradogram

SaaS Management
On average, a small-sized company uses 20 to 30 Software as a Service product.

With the growth of the company, the number of SaaS applications grows too.

This SaaS adoption requires real-time visibility and analysis across the organization, and that is done through
automation.

The SaaS app management automation reports on the overall usage and work done through those applications.

1. Torii
2. Blissfully
3. BetterCloud
4. Alpin
5. CloudExchange

Back-officeAutomation
Back-office automation tools provide better storage and documents access to the teams.

These tools deal with a variety of office operations simultaneously; data manipulation, exchange, and management
while saving them time and resources.

5 Best Back-Office Automation includes:

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1. Another Monday
2. Automation Anywhere
3. Blue Prism
4. Linx
5. UiPath

Front desk Automation

Applying some modern changes in the long-rooted traditional practices reacts like a catalyst to your office
workflow.

Now, it has become an indispensable part of customer relationship management to automate their interactions.

Front desk automation supports a variety of processes. The capabilities of every front-office automation tool or
software solution thus vary accordingly.

It may also include additional automation facilities for help-desk and call-center management, salesforce, product
configuration, and countless other operations.

1. Envoy
2. LobbyGuard
3. Sine
4. SwipedOn
5. Welkio

Communication
Employee, team, project, or client – all of them are inter-dependant in an organization.

For a constant flow of communication and collaboration, it‘s crucial to have a trustable uncomplicated inter-
connected networking facility. It helps in supervision and organization all the communication needs and ticketing
facilities.

Create a digital workplace environment that provides services like- NAS device access integration and distribution,
Social Intranet, private and group chat rooms, discussion forum, Issue ticketing, and tracking, and audio and video
conferencing.

1. 8×8
2. Slack
3. Uberconference
4. Workplace

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5. Yarooms

Facilities
Employ technology for general facility offerings and management for employees – like correct lighting, HVAC
(heating, ventilation, and air-conditioning), office inventory needs, and physical security.

You need a simple, robust automation software that is adaptive to build a productive and comfortable office
environment successfully.

1. Azzier
2. Corrigo CMMS
3. FMX
4. Hippo
5. Stockpile

Analytics and Reporting

Automation tools help gather insights on teams and ongoing or upcoming processes and provides an easy way to
monitor overall process flow.

Reporting software analyses provide useful information from the accumulated database for proper decision making
and visualization.

It also includes business intelligence, application performance, and enterprise reporting

1. Zoho Analytics
2. Tableau
3. Answer rocket
4. SAP Crystal
5. Izenda Reports

Remote Workforce
Office workplace mobility has now become an essential aspect of an organization and employee needs.

Once the office remote automation is completed, companies are ready to reap its advantages in multiple ways;
decreased operational costs, lower absenteeism and stress levels, low carbon footprint, and reportedly efficiency
boost of up to 30%.

1. BaseCamp
2. Google Drive

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3. KissFlow
4. ProofHub
5. Zapier

eSignature Solution
An e-signature tool helps the organization with legally binding e-signatures and signed user documents. These
software and tools help you in appending required signatures digitally.

Electronic signature tools help keep track and record any changes done after sealing in the document. It prevents
files and critical information from any unauthentic manipulations.

This speeds up the process with high transparency and security—this way, each individual has easy access to their
contracts and another documentation status.

1. Adobe Sign
2. DocuSign
3. HelloSign
4. Secured Signing
5. SignEasy

Over Automation

It‘s important to know what automation tools you require, rather than what is readily available in the market.

As much as automation is needed, it‘s crucial to figure out what really needs to be automated and what not. Learn
to differentiate between strategic tools and the strength of the human workforce.

Over-automation is not an option. For example, take considerations from a customer standpoint. Create touchpoints
for human supervision and intervention. Sometimes fully automating processes is not a viable option.

Week 14

Systems Development Life Cycle

The preliminary investigation is carried out to determine the scope and objectives of the new system and to
investigate whether there is a feasible solution. ... At this stage an analyst or small project team is authorized to
investigate the real potential of the new application.

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Requirements analysis

The most important phase of the SDLC is the requirement gathering and analysis phase because this is when the
project team begins to understand what the customer wants from the project ..... After the project team receives all
of the customer requirements or specifications, the team begins to analyze each requirement.

Requirements Analysis

Objective

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The objective of this phase is to define in more detail the system inputs, processes, outputs and interfaces. At the
end of this phase the system‘s processes will be defined at the functional level, meaning the functions to be
performed will be known, but not necessarily how they will be performed. Unless specifically constrained by
the Project Charter, Requirements Analysis should not consider the computer programs, files and data streams.

Requirements Analysis will identify and consider the risks related to how the technology will be integrated into the
standard operating procedures. Requirements Analysis will collect the functional and system requirements of the
business process, the user requirements and the operational requirements (e.g., when operational what is necessary
to keep the system up and running).

Entry Criteria

In order for Requirements Analysis to begin, there must be an approved Project Charter. The scope of the project
will be understood and stated in the Project Charter. The roles and responsibilities for the various activities in the
Development Life cycle will be known.

Roles & Responsibilities

Project Manager: The project manager is accountable for the success of this phase. The primary responsibility
of the Project Manager during Requirements Analysis is to ensure the Business Analyst(s) has access to the proper:
Subject Matter Experts, Business Process documentation, existing technology and potential technological solutions
as well as current and desired artifacts. A major impediment to successful requirements analysis is lack of exposure
to any of the previously listed items

Business Analyst – The BA must first develop a plan for how the requirements analysis activity will be
accomplished. The BA must then document the business process descriptions and collect the requirements of the
system from the Subject Matter Experts (SME‘s) in a manner which allows traceability to documents generated in
previous activities and creates a framework for future activities. All identified requirements should fall within the
constraints of the project scope and align with the customer‘s statement of needs. The BA will generate a
requirements traceability matrix which becomes the basis for the Design activity.

The BA constructs a logical model that describes the data and processes needed to support the requested
functionality. Processes are identified along with any of the associated data they use or create. The interactions
of dependent processes is also defined.

Because of the variability in scope of the projects intended to fall within the confines of this life cycle, it is expected
that the BA will need a flexible set of tools to properly elicit and document the business requirements. The BA
will work closely with the SME‘s to ensure a logical model showing processes, data structures and business
activities in an accurate, consistent and complete manner.

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The BA must also consider the current technical architecture, application software and data that is used to support
the business function to guarantee that no necessary functionality has been overlooked. The BA will also be aware
of considerations surrounding persons with disabilities and any other legal considerations. Some consideration
must also be paid to capacity and growth associated with the project.

Subject Matter Expert – The Subject Matter Expert understands the current business processes and any new
requirements that are to be satisfied by the project. They must work closely with the BA to transfer both stated
and tacit knowledge for inclusion in the Functional Requirements Documents

Designer – The Designer receives the Artifacts produced in the Requirements Analysis phase. Because of the
variability in scope of the projects intended to fall within the confines of this life cycle, it is expected that the
Designers will coordinate with the BA early on to ensure there is an agreed upon set of artifacts delivered.

Testing Lead – The Testing Lead is involved during this activity to ensure that the requirements identified by the
BA and accepted by the customer are measurable and that IT has the resources to complete adequate
testing. Having the Testing Lead involved at this step allows for proper scheduling and preparation for the various
stages of testing that occur during the SDLC.

Artifacts

Functional Requirements Document.dotx (FRD): This is a document that defines in more detail the system inputs,
processes, outputs and interfaces. Such detail can be provided in various formats. Usually no individual technique
or model is sufficient to express the requirements of a nontrivial system. Different types of projects and different
varieties of customers will find success using different techniques for collecting and representing the functional
requirements. Some of the optional techniques for the expression of functional requirements which could define
the contents of the FRD are shown in the italicized list below. Note that all of the techniques should be briefly
considered at the beginning of the Requirements Analysis and appropriate ones should be determined based on
type of project and customer. The FRD should ultimately contain a Requirements Traceability Matrix which will
be uniformly adopted as the main component of all FRDs. Note that none of the optional techniques listed are
technology dependent nor do they dictate specifics to the Designers of HOW process work and accomplish the
goals of the system.

 Entity-relationship diagrams (optional)

 process hierarchy diagrams (optional)
 process dependency diagrams (optional)
 logical model (optional)
 activity diagrams (optional)
 business algorithms (optional)
 entity life cycle diagrams (optional)

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 entity state change matrices (optional)

 Mockups (optional)
 Data Flow Diagrams: Intended to represent the flow of information around a system (optional)
 Requirements Traceability Matrix (included at end of FRD)

Review (Revision)

The completion of Requirements Analysis is signified by a presentation of the FRD to the Customer and the
Designers. At this point the Project Manager should also review the FRD for the time line for the remaining life
cycle phases, review of resource availability and a risk assessment organized to align with the remaining steps of
the life cycle.

Approval

When the customer signs off on the Business Requirements the solution designers can begin their system design
work. Depending on the technique of development there might be more than one visit to the Requirements
Analysis activity. It is important that the Business Analyst, Designers and Customer agree and understand the
expected iterations of Requirements analysis.

Exit Criteria

Requirements Analysis is complete when the customer signs off on the Functional Requirements Document.

Design of systems development of software

Systems development is the process of defining, designing, testing and implementing a new software application
or program For effective systems development, all of the following steps must be done: Preliminary analysis
| describe costs and benefits. Systems analysis, requirements defined | define project goals

he Seven Phases of the System-Development Life Cycle

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The system-development life cycle enables users to transform a newly-developed project into an operational one.

The System Development Life Cycle, "SDLC" for short, is a multistep, iterative process, structured in a methodical
way. This process is used to model or provide a framework for technical and non-technical activities to deliver a
quality system which meets or exceeds a business"s expectations or manage decision-making progression.

Traditionally, the systems-development life cycle consisted of five stages. That has now increased to seven phases.
Increasing the number of steps helped systems analysts to define clearer actions to achieve specific goals.

Similar to a project life cycle (PLC), the SDLC uses a systems approach to describe a process. It is often used and
followed when there is an IT or IS project under development.

The SDLC highlights different stages (phrases or steps) of the development process. The life cycle approach is
used so users can see and understand what activities are involved within a given step. It is also used to let them
know that at any time, steps can be repeated or a previous step can be reworked when needing to modify or improve
the system.

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systems testing

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System Testing is a type of software testing that is performed on a complete integrated system to evaluate the
compliance of the system with the corresponding requirements. In system testing, integration testing passed
components are taken as input.Aug 9, 2019

SYSTEM TESTING is a level of software testing where a complete and integrated software is tested. The purpose
of this test is to evaluate the system‘s compliance with the specified requirements.

ISTQB Definition

o system testing: The process of testing an integrated system to verify that it meets specified requirements.
Table of Contents
 Analogy
 Method
 Tasks
 Types
 Test Environment
 Confusion with System Integration Testing

Analogy

During the process of manufacturing a ballpoint pen, the cap, the body, the tail, the ink cartridge and the ballpoint
are produced separately and unit tested separately. When two or more units are ready, they are assembled and
Integration Testing is performed. When the complete pen is integrated, System Testing is performed.

Method

Usually, Black Box Testing method, in which the internal structure of the system under test is unknown, is used.
Tests are normally done manually but the trend of test automation, specially for Regression Testing, is picking up.

Tasks

o System Test Plan [Prepare >> Review >> Rework >> Baseline]

o System Test Cases/ Test Scripts/ Test Data [Prepare >> Review >> Rework >> Baseline]

o System Test [Execute >> Re-execute]

When is it performed?

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System Testing is the third level of software testing performed after Integration Testing and before Acceptance
Testing.

Who performs it?

Normally, independent software testers perform System Testing.

Types

System Testing is the most comprehensive level of testing and many types of tests are performed. Some of them
are mentioned below:

o Smoke Testing to ensure that the most important functions work and to decide whether the build is fit for further
testing.

o Functional Testing to ensure that features work as per the functional requirements.

o Regression Testing to ensure that changes (enhancements or defect fixes) to the software have not adversely
affected it.

o Usability Testing to determine if the system is easily usable from an end-user‘s perspective.

o Performance Testing to determine how the system performs in terms of responsiveness and stability under a certain
load.

o Security Testing to uncover vulnerabilities of the system and determine that its data and resources are protected
from possible intruders.

o Compliance Testing to determine the compliance of the system with internal or external standards.

Test Environment

Since System Testing involves testing the software as a whole, the goal should be to make the test environment as
close to the production environment as possible. Else, you will be hurled with production defects that the
sophisticated you failed to catch whereas the simple end-users instantly found. What an embarrassment!

Confusion with System Integration Testing

Sometimes, System Testing is confused with System Integration Testing, which is just a type of Integration Testing
focusing on the interactions and interfaces between systems. System Testing, on the other hand, takes a more
holistic approach and focuses on the entire system‘s ability to fulfill the business / software requirements.

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Implementation & Maintenance of system development life cycle

Maintenance includes all the activity after the installation of software that is performed to keep
the system operational. Maintenance also needed due to a change in the environment or the requirements of
the system. ...

System Implementation and Maintenance

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Implementation is a process of ensuring that the information system is operational. It involves −

 Constructing a new system from scratch

 Constructing a new system from the existing one.

Implementation allows the users to take over its operation for use and evaluation. It involves training the users to
handle the system and plan for a smooth conversion.

Training

The personnel in the system must know in detail what their roles will be, how they can use the system, and what
the system will or will not do. The success or failure of welldesigned and technically elegant systems can depend
on the way they are operated and used.

Training Systems Operators

Systems operators must be trained properly such that they can handle all possible operations, both routine and
extraordinary. The operators should be trained in what common malfunctions may occur, how to recognize them,
and what steps to take when they come.

Training involves creating troubleshooting lists to identify possible problems and remedies for them, as well as
the names and telephone numbers of individuals to contact when unexpected or unusual problems arise.

Training also involves familiarization with run procedures, which involves working through the sequence of
activities needed to use a new system.

User Training

 End-user training is an important part of the computer-based information system development, which must
be provided to employees to enable them to do their own problem solving.

 User training involves how to operate the equipment, troubleshooting the system problem, determining
whether a problem that arose is caused by the equipment or software.

 Most user training deals with the operation of the system itself. The training courses must be designed to
help the user with fast mobilization for the organization.

Training Guidelines

 Establishing measurable objectives

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 Using appropriate training methods

 Selecting suitable training sites

 Employing understandable training materials

Training Methods

Instructor-led training

It involves both trainers and trainees, who have to meet at the same time, but not necessarily at the same place.
The training session could be one-on-one or collaborative. It is of two types −

Virtual Classroom

In this training, trainers must meet the trainees at the same time, but are not required to be at the same place. The
primary tools used here are: video conferencing, text based Internet relay chat tools, or virtual reality packages,
etc.

Normal Classroom

The trainers must meet the trainees at the same time and at the same place. They primary tools used here are
blackboard, overhead projectors, LCD projector, etc.

Self-Paced Training

It involves both trainers and trainees, who do not need to meet at the same place or at the same time. The trainees
learn the skills themselves by accessing the courses at their own convenience. It is of two types −

Multimedia Training

In this training, courses are presented in multimedia format and stored on CD-ROM. It minimizes the cost in
developing an in-house training course without assistance from external programmers.

Web-based Training

In this training, courses are often presented in hyper media format and developed to support internet and intranet.
It provides just–in-time training for end users and allow organization to tailor training requirements.

Conversion

It is a process of migrating from the old system to the new one. It provides understandable and structured approach
to improve the communication between management and project team.

Conversion Plan

It contains description of all the activities that must occur during implementation of the new system and put it
into operation. It anticipates possible problems and solutions to deal with them.
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It includes the following activities −

 Name all files for conversions.

 Identifying the data requirements to develop new files during conversion.

 Listing all the new documents and procedures that are required.

 Identifying the controls to be used in each activity.

 Identifying the responsibility of person for each activity.

 Verifying conversion schedules.

Conversion Methods

The four methods of conversion are −

 Parallel Conversion

 Direct Cutover Conversion

 Pilot Approach

 Phase-In Method

Method Description Advantages Disadvantages

Provides fallback when Causes cost overruns.

new system fails.
Old and new systems are used New system may not
Parallel
simultaneously. Offers greatest security get fair trail.
Conversion
and ultimately testing
of new system.

Forces users to make No fall back if

Direct New system is implemented new system work problems arise with

Cutover and old system is replaced new system

Immediate benefit from
Conversion completely. new methods and Requires most
control. careful planning

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Allows training and A long term phasein

installation without causes a problem of

Supports phased approach that unnecessary use of whether conversion

Pilot
gradually implement system resources. goes well or not.
Approach
across all users Avoid large
contingencies from risk
management.

Provides experience Gives impression that

Working version of system and line test before old system is

implemented in one part of implementation erroneous and it is not

Phase-In organization based on reliable.

When preferred new
Method feedback, it is installed system involves new
throughout the organization all technology or drastic
alone or stage by stage. changes in
performance.

File Conversion

It is a process of converting one file format into another. For example, file in WordPerfect format can be converted
into Microsoft Word.

For successful conversion, a conversion plan is required, which includes −

 Knowledge of the target system and understanding of the present system

 Teamwork

 Automated methods, testing and parallel operations

 Continuous support for correcting problems

 Updating systems/user documentation, etc

Many popular applications support opening and saving to other file formats of the same type. For example,
Microsoft Word can open and save files in many other word processing formats.

Post-Implementation Evaluation Review (PIER)

PIER is a tool or standard approach for evaluating the outcome of the project and determine whether the project
is producing the expected benefits to the processes, products or services. It enables the user to verify that the
project or system has achieved its desired outcome within specified time period and planned cost.
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PIER ensures that the project has met its goals by evaluating the development and management processes of the
project.

Objectives of PIER

The objectives of having a PIER are as follows −

 To determine the success of a project against the projected costs, benefits, and timelines.

 To identify the opportunities to add additional value to the project.

 To determine strengths and weaknesses of the project for future reference and appropriate action.

 To make recommendations on the future of the project by refining cost estimating techniques.

The following staff members should be included in the review process −

 Project team and Management

 User staff

 Strategic Management Staff

 External users

System Maintenance / Enhancement

Maintenance means restoring something to its original conditions. Enhancement means adding, modifying the
code to support the changes in the user specification. System maintenance conforms the system to its original
requirements and enhancement adds to system capability by incorporating new requirements.

Thus, maintenance changes the existing system, enhancement adds features to the existing system, and
development replaces the existing system. It is an important part of system development that includes the activities
which corrects errors in system design and implementation, updates the documents, and tests the data.

Maintenance Types

System maintenance can be classified into three types −

 Corrective Maintenance − Enables user to carry out the repairing and correcting leftover problems.

 Adaptive Maintenance − Enables user to replace the functions of the programs.

 Perfective Maintenance − Enables user to modify or enhance the programs according to the users‘
requirements and changing needs.

SDLC Models

Software Development Life Cycle Process

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SDLC is a process which defines the various stages involved in the development of software for delivering a high-
quality product. SDLC stages cover the complete life cycle of a software i.e. from inception to retirement of the
product.

Adhering to the SDLC process leads to the development of the software in a systematic and disciplined manner.

Purpose:
Purpose of SDLC is to deliver a high-quality product which is as per the customer‘s requirement.

SDLC has defined its phases as, Requirement gathering, Designing, Coding, Testing, and Maintenance. It is
important to adhere to the phases to provide the Product in a systematic manner.

For Example, A software has to be developed and a team is divided to work on a feature of the product and is
allowed to work as they want. One of the developers decides to design first whereas the other decides to code first
and the other on the documentation part.
This will lead to project failure because of which it is necessary to have a good knowledge and understanding
among the team members to deliver an expected product.

SDLC Cycle
SDLC Cycle represents the process of developing software.

Below is the diagrammatic representation of the SDLC cycle:

SDLC Phases
Given below are the various phases:
 Requirement gathering and analysis
 Design
 Implementation or coding
 Testing
 Deployment
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 Maintenance
#1) Requirement Gathering and Analysis
During this phase, all the relevant information is collected from the customer to develop a product as per their
expectation. Any ambiguities must be resolved in this phase only.

Business analyst and Project Manager set up a meeting with the customer to gather all the information like what
the customer wants to build, who will be the end-user, what is the purpose of the product. Before building a product
a core understanding or knowledge of the product is very important.

For Example, A customer wants to have an application which involves money transactions. In this case, the
requirement has to be clear like what kind of transactions will be done, how it will be done, in which currency it
will be done, etc.
Once the requirement gathering is done, an analysis is done to check the feasibility of the development of a product.
In case of any ambiguity, a call is set up for further discussion.

Once the requirement is clearly understood, the SRS (Software Requirement Specification) document is created.
This document should be thoroughly understood by the developers and also should be reviewed by the customer
for future reference.

#2) Design
In this phase, the requirement gathered in the SRS document is used as an input and software architecture that is
used for implementing system development is derived.

#3) Implementation or Coding

Implementation/Coding starts once the developer gets the Design document. The Software design is translated into
source code. All the components of the software are implemented in this phase.

#4) Testing
Testing starts once the coding is complete and the modules are released for testing. In this phase, the developed
software is tested thoroughly and any defects found are assigned to developers to get them fixed.

Retesting, regression testing is done until the point at which the software is as per the customer‘s expectation.
Testers refer SRS document to make sure that the software is as per the customer‘s standard.

#5) Deployment
Once the product is tested, it is deployed in the production environment or first UAT (User Acceptance testing) is
done depending on the customer expectation.

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In the case of UAT, a replica of the production environment is created and the customer along with the developers
does the testing. If the customer finds the application as expected, then sign off is provided by the customer to go
live.

#6) Maintenance
After the deployment of a product on the production environment, maintenance of the product i.e. if any issue
comes up and needs to be fixed or any enhancement is to be done is taken care by the developers.

Software Development Life Cycle Models

A software life cycle model is a descriptive representation of the software development cycle. SDLC models might
have a different approach but the basic phases and activity remain the same for all the models.

#1) Waterfall Model

Waterfall model is the very first model that is used in SDLC. It is also known as the linear sequential model.
In this model, the outcome of one phase is the input for the next phase. Development of the next phase starts only
when the previous phase is complete.

 First, Requirement gathering and analysis is done. Once the requirement is freeze then only the System
Design can start. Herein, the SRS document created is the output for the Requirement phase and it acts as
an input for the System Design.
 In System Design Software architecture and Design, documents which act as an input for the next phase
are created i.e. Implementation and coding.
 In the Implementation phase, coding is done and the software developed is the input for the next phase i.e.
testing.
 In the testing phase, the developed code is tested thoroughly to detect the defects in the software. Defects
are logged into the defect tracking tool and are retested once fixed. Bug logging, Retest, Regression testing
goes on until the time the software is in go-live state.
 In the Deployment phase, the developed code is moved into production after the sign off is given by the
customer.
 Any issues in the production environment are resolved by the developers which come under maintenance.

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Advantages of the Waterfall Model:

 Waterfall model is the simple model which can be easily understood and is the one in which all the phases
are done step by step.
 Deliverables of each phase are well defined, and this leads to no complexity and makes the project easily
manageable.
Disadvantages of Waterfall model:
 Waterfall model is time-consuming & cannot be used in the short duration projects as in this model a new
phase cannot be started until the ongoing phase is completed.
 Waterfall model cannot be used for the projects which have uncertain requirement or wherein the
requirement keeps on changing as this model expects the requirement to be clear in the requirement
gathering and analysis phase itself and any change in the later stages would lead to cost higher as the
changes would be required in all the phases.
#2) V-Shaped Model
V- Model is also known as Verification and Validation Model. In this model Verification & Validation goes hand
in hand i.e. development and testing goes parallel. V model and waterfall model are the same except that the test
planning and testing start at an early stage in V-Model.

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a) Verification Phase:
(i) Requirement Analysis:
In this phase, all the required information is gathered & analyzed. Verification activities include reviewing the
requirements.

(ii) System Design:

Once the requirement is clear, a system is designed i.e. architecture, components of the product are created and
documented in a design document.

(iii) High-Level Design:

High-level design defines the architecture/design of modules. It defines the functionality between the two modules.

(iv) Low-Level Design:

Low-level Design defines the architecture/design of individual components.

(v) Coding:
Code development is done in this phase.

b) Validation Phase:
(i) Unit Testing:
Unit testing is performed using the unit test cases that are designed and is done in the Low-level design phase. Unit
testing is performed by the developer itself. It is performed on individual components which lead to early defect
detection.
(ii) Integration Testing:
Integration testing is performed using integration test cases in High-level Design phase. Integration testing is the
testing that is done on integrated modules. It is performed by testers.
(iii) System Testing:

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System testing is performed in the System Design phase. In this phase, the complete system is tested i.e. the entire
system functionality is tested.
(iv) Acceptance Testing:
Acceptance testing is associated with the Requirement Analysis phase and is done in the customer‘s environment.

Advantages of V – Model:
 It is a simple and easily understandable model.
 V –model approach is good for smaller projects wherein the requirement is defined and it freezes in the
early stage.
 It is a systematic and disciplined model which results in a high-quality product.
Disadvantages of V-Model:
 V-shaped model is not good for ongoing projects.
 Requirement change at the later stage would cost too high.
#3) Prototype Model
The prototype model is a model in which the prototype is developed prior to the actual software.

Prototype models have limited functional capabilities and inefficient performance when compared to the actual
software. Dummy functions are used to create prototypes. This is a valuable mechanism for understanding the
customers‘ needs.

Software prototypes are built prior to the actual software to get valuable feedback from the customer. Feedbacks
are implemented and the prototype is again reviewed by the customer for any change. This process goes on until
the model is accepted by the customer.

Once the requirement gathering is done, the quick design is created and the prototype which is presented to the
customer for evaluation is built.

Customer feedback and the refined requirement is used to modify the prototype and is again presented to the
customer for evaluation. Once the customer approves the prototype, it is used as a requirement for building the
actual software. The actual software is build using the Waterfall model approach.

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Advantages of Prototype Model:

 Prototype model reduces the cost and time of development as the defects are found much earlier.
 Missing feature or functionality or a change in requirement can be identified in the evaluation phase and
can be implemented in the refined prototype.
 Involvement of a customer from the initial stage reduces any confusion in the requirement or understanding
of any functionality.
Disadvantages of Prototype Model:
 Since the customer is involved in every phase, the customer can change the requirement of the end product
which increases the complexity of the scope and may increase the delivery time of the product.
#4) Spiral Model
The Spiral Model includes iterative and prototype approach.
Spiral model phases are followed in the iterations. The loops in the model represent the phase of the SDLC process
i.e. the innermost loop is of requirement gathering & analysis which follows the Planning, Risk analysis,
development, and evaluation. Next loop is Designing followed by Implementation & then testing.

Spiral Model has four phases:

 Planning
 Risk Analysis
 Engineering
 Evaluation

(i) Planning:
The planning phase includes requirement gathering wherein all the required information is gathered from the
customer and is documented. Software requirement specification document is created for the next phase.

(ii) Risk Analysis:

In this phase, the best solution is selected for the risks involved and analysis is done by building the prototype.

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For Example, the risk involved in accessing the data from a remote database can be that the data access rate might
be too slow. The risk can be resolved by building a prototype of the data access subsystem.
(iii) Engineering:
Once the risk analysis is done, coding and testing are done.

(iv) Evaluation:
Customer evaluates the developed system and plans for the next iteration.

Advantages of Spiral Model:

 Risk Analysis is done extensively using the prototype models.
 Any enhancement or change in the functionality can be done in the next iteration.
Disadvantages of Spiral Model:
 The spiral model is best suited for large projects only.
 The cost can be high as it might take a large number of iterations which can lead to high time to reach the
final product.
#5) Iterative Incremental Model
The iterative incremental model divides the product into small chunks.

For Example, Feature to be developed in the iteration is decided and implemented. Each iteration goes through
the phases namely Requirement Analysis, Designing, Coding, and Testing. Detailed planning is not required in
iterations.
Once the iteration is completed, a product is verified and is delivered to the customer for their evaluation and
feedback. Customer‘s feedback is implemented in the next iteration along with the newly added feature.

Hence, the product increments in terms of features and once the iterations are completed the final build holds all
the features of the product.

Phases of Iterative & Incremental Development Model:

 Inception phase
 Elaboration Phase
 Construction Phase
 Transition Phase
(i) Inception Phase:
Inception phase includes the requirement and scope of the Project.

(ii) Elaboration Phase:

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In the elaboration phase, the working architecture of a product is delivered which covers the risk identified in the
inception phase and also fulfills the non-functional requirements.

(iii) Construction Phase:

In the Construction phase, the architecture is filled in with the code which is ready to be deployed and is created
through analysis, designing, implementation, and testing of the functional requirement.

(iv) Transition Phase:

In the Transition Phase, the product is deployed in the Production environment.

Advantages of Iterative & Incremental Model:

 Any change in the requirement can be easily done and would not cost as there is a scope of incorporating
the new requirement in the next iteration.
 Risk is analyzed & identified in the iterations.
 Defects are detected at an early stage.
 As the product is divided into smaller chunks it is easy to manage the product.
Disadvantages of Iterative & Incremental Model:
 Complete requirement and understanding of a product are required to break down and build incrementally.
#6) Big Bang Model
Big Bang Model does not have any defined process. Money and efforts are put together as the input and output
come as a developed product which might be or might not be the same as what the customer needs.

Big Bang Model does not require much planning and scheduling. The developer does the requirement analysis &
coding and develops the product as per his understanding. This model is used for small projects only. There is no
testing team and no formal testing is done, and this could be a cause for the failure of the project.

Advantages of Big Bang Model:

 It‘s a very simple Model.
 Less Planning and scheduling is required.
 The developer has the flexibility to build the software of their own.
Disadvantages of the Big Bang Model:
 Big Bang models cannot be used for large, ongoing & complex projects.
 High risk and uncertainty.
#7) Agile Model
Agile Model is a combination of the Iterative and incremental model. This model focuses more on flexibility while
developing a product rather than on the requirement.

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In Agile, a product is broken into small incremental builds. It is not developed as a complete product in one go.
Each build increments in terms of features. The next build is built on previous functionality.

In agile iterations are termed as sprints. Each sprint lasts for2-4 weeks. At the end of each sprint, the product owner
verifies the product and after his approval, it is delivered to the customer.

Customer feedback is taken for improvement and his suggestions and enhancement are worked on in the next
sprint. Testing is done in each sprint to minimize the risk of any failures.

Advantages of Agile Model:

 It allows more flexibility to adapt to the changes.
 The new feature can be added easily.
 Customer satisfaction as the feedback and suggestions are taken at every stage.
Disadvantages:
 Lack of documentation.
 Agile needs experienced and highly skilled resources.
 If a customer is not clear about how exactly they want the product to be, then the project would fail.
Conclusion
Adherence to a suitable life cycle is very important, for the successful completion of the Project. This, in turn,
makes the management easier.

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Different Software Development Life Cycle models have their own Pros and Cons. The best model for any Project
can be determined by the factors like Requirement (whether it is clear or unclear), System Complexity, Size of the
Project, Cost, Skill limitation, etc.

Example, in case of an unclear requirement, Spiral and Agile models are best to be used as the required change
can be accommodated easily at any stage.
Waterfall model is a basic model and all the other SDLC models are based on that only.

Hope you would have gained immense knowledge of SDLC.

Recommended Reading
 Spiral Model - What is SDLC Spiral Model?
 What is SDLC Waterfall Model?
 What is Software Testing Life Cycle (STLC)?
 Software Testing QA Assistant Job
 10 BEST Custom Software Development Companies and Services in 2020
 Practical Software Testing - New FREE eBook [Download]
 Onsite - Offshore Model of Software Testing Projects (and How to Make It Work for You)
 Why Does Software Have Bugs?

Software maintenance

Software maintenance in software engineering is the modification of a software product after delivery to correct
faults, to improve performance or other attributes. A common perception of maintenance is that it merely involves
fixing defects. Wikip

Software maintenance is widely accepted part of SDLC now a days. It stands for all the modifications and
updations done after the delivery of software product. There are number of reasons, why modifications are
required, some of them are briefly mentioned below:

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 Market Conditions - Policies, which changes over the time, such as taxation and newly introduced
constraints like, how to maintain bookkeeping, may trigger need for modification.

 Client Requirements - Over the time, customer may ask for new features or functions in the software.

 Host Modifications - If any of the hardware and/or platform (such as operating system) of the target host
changes, software changes are needed to keep adaptability.

 Organization Changes - If there is any business level change at client end, such as reduction of
organization strength, acquiring another company, organization venturing into new business, need to
modify in the original software may arise.

Types of maintenance

In a software lifetime, type of maintenance may vary based on its nature. It may be just a routine maintenance
tasks as some bug discovered by some user or it may be a large event in itself based on maintenance size or nature.
Following are some types of maintenance based on their characteristics:

 Corrective Maintenance - This includes modifications and updations done in order to correct or fix
problems, which are either discovered by user or concluded by user error reports.

 Adaptive Maintenance - This includes modifications and updations applied to keep the software product
up-to date and tuned to the ever changing world of technology and business environment.

 Perfective Maintenance - This includes modifications and updates done in order to keep the software
usable over long period of time. It includes new features, new user requirements for refining the software
and improve its reliability and performance.

 Preventive Maintenance - This includes modifications and updations to prevent future problems of the
software. It aims to attend problems, which are not significant at this moment but may cause serious issues
in future.

Cost of Maintenance

Reports suggest that the cost of maintenance is high. A study on estimating software maintenance found that the
cost of maintenance is as high as 67% of the cost of entire software process cycle.

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On an average, the cost of software maintenance is more than 50% of all SDLC phases. There are various factors,
which trigger maintenance cost go high, such as:

Real-world factors affecting Maintenance Cost

 The standard age of any software is considered up to 10 to 15 years.

 Older softwares, which were meant to work on slow machines with less memory and storage capacity
cannot keep themselves challenging against newly coming enhanced softwares on modern hardware.

 As technology advances, it becomes costly to maintain old software.

 Most maintenance engineers are newbie and use trial and error method to rectify problem.

 Often, changes made can easily hurt the original structure of the software, making it hard for any subsequent
changes.

 Changes are often left undocumented which may cause more conflicts in future.

Software-end factors affecting Maintenance Cost

 Structure of Software Program

 Programming Language

 Dependence on external environment

 Staff reliability and availability

Maintenance Activities

IEEE provides a framework for sequential maintenance process activities. It can be used in iterative manner and
can be extended so that customized items and processes can be included.

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These activities go hand-in-hand with each of the following phase:

 Identification & Tracing - It involves activities pertaining to identification of requirement of modification

or maintenance. It is generated by user or system may itself report via logs or error messages.Here, the
maintenance type is classified also.

 Analysis - The modification is analyzed for its impact on the system including safety and security
implications. If probable impact is severe, alternative solution is looked for. A set of required
modifications is then materialized into requirement specifications. The cost of modification/maintenance
is analyzed and estimation is concluded.

 Design - New modules, which need to be replaced or modified, are designed against requirement
specifications set in the previous stage. Test cases are created for validation and verification.

 Implementation - The new modules are coded with the help of structured design created in the design
step.Every programmer is expected to do unit testing in parallel.

 System Testing - Integration testing is done among newly created modules. Integration testing is also
carried out between new modules and the system. Finally the system is tested as a whole, following
regressive testing procedures.

 Acceptance Testing - After testing the system internally, it is tested for acceptance with the help of users.
If at this state, user complaints some issues they are addressed or noted to address in next iteration.

 Delivery - After acceptance test, the system is deployed all over the organization either by small update
package or fresh installation of the system. The final testing takes place at client end after the software is
delivered.

Training facility is provided if required, in addition to the hard copy of user manual.

 Maintenance management - Configuration management is an essential part of system maintenance. It is

aided with version control tools to control versions, semi-version or patch management.

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Software Re-engineering

When we need to update the software to keep it to the current market, without impacting its functionality, it is
called software re-engineering. It is a thorough process where the design of software is changed and programs are
re-written.

Legacy software cannot keep tuning with the latest technology available in the market. As the hardware become
obsolete, updating of software becomes a headache. Even if software grows old with time, its functionality does
not.

For example, initially Unix was developed in assembly language. When language C came into existence, Unix
was re-engineered in C, because working in assembly language was difficult.

Other than this, sometimes programmers notice that few parts of software need more maintenance than others and
they also need re-engineering.

Re-Engineering Process

 Decide what to re-engineer. Is it whole software or a part of it?

 Perform Reverse Engineering, in order to obtain specifications of existing software.

 Restructure Program if required. For example, changing function-oriented programs into object-oriented
programs.

 Re-structure data as required.

 Apply Forward engineering concepts in order to get re-engineered software.

There are few important terms used in Software re-engineering

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Reverse Engineering

It is a process to achieve system specification by thoroughly analyzing, understanding the existing system. This
process can be seen as reverse SDLC model, i.e. we try to get higher abstraction level by analyzing lower
abstraction levels.

An existing system is previously implemented design, about which we know nothing. Designers then do reverse
engineering by looking at the code and try to get the design. With design in hand, they try to conclude the
specifications. Thus, going in reverse from code to system specification.

Program Restructuring

It is a process to re-structure and re-construct the existing software. It is all about re-arranging the source code,
either in same programming language or from one programming language to a different one. Restructuring can
have either source code-restructuring and data-restructuring or both.

Re-structuring does not impact the functionality of the software but enhance reliability and maintainability.
Program components, which cause errors very frequently can be changed, or updated with re-structuring.

The dependability of software on obsolete hardware platform can be removed via re-structuring.

Forward Engineering

Forward engineering is a process of obtaining desired software from the specifications in hand which were
brought down by means of reverse engineering. It assumes that there was some software engineering already done
in the past.

Forward engineering is same as software engineering process with only one difference – it is carried out always
after reverse engineering.

Component reusability

A component is a part of software program code, which executes an independent task in the system. It can be a
small module or sub-system itself.

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Example

The login procedures used on the web can be considered as components, printing system in software can be seen
as a component of the software.

Components have high cohesion of functionality and lower rate of coupling, i.e. they work independently and can
perform tasks without depending on other modules.

In OOP, the objects are designed are very specific to their concern and have fewer chances to be used in some
other software.

In modular programming, the modules are coded to perform specific tasks which can be used across number of
other software programs.

There is a whole new vertical, which is based on re-use of software component, and is known as Component
Based Software Engineering (CBSE).

Re-use can be done at various levels

 Application level - Where an entire application is used as sub-system of new software.

 Component level - Where sub-system of an application is used.

 Modules level - Where functional modules are re-used.

Software components provide interfaces, which can be used to establish communication among different
components.

Reuse Process

Two kinds of method can be adopted: either by keeping requirements same and adjusting components or by
keeping components same and modifying requirements.

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 Requirement Specification - The functional and non-functional requirements are specified, which a
software product must comply to, with the help of existing system, user input or both.

 Design - This is also a standard SDLC process step, where requirements are defined in terms of software
parlance. Basic architecture of system as a whole and its sub-systems are created.

 Specify Components - By studying the software design, the designers segregate the entire system into
smaller components or sub-systems. One complete software design turns into a collection of a huge set of
components working together.

 Search Suitable Components - The software component repository is referred by designers to search for
the matching component, on the basis of functionality and intended software requirements..

 Incorporate Components - All matched components are packed together to shape them as complete
software.

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Week 15

Executive Information systems

An executive information system (EIS) is a decision support system (DSS) used to assist senior executives in
the decision-making process. It does this by providing easy access to important data needed to achieve strategic
goals in an organization. An EIS normally features graphical displays on an easy-to-use interface.

Beside above, what is executive information system example? Examples of graphic base are: Time series charts,
scatter diagrams, maps, motion detectors, sequence charts, and bar charts. The fourth and final component for

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software is Model Base. The Executive Information Systems models contain routine and special statistical,
financial, and other quantitative analysis.

The Characteristics of Executive Information System (EIS)

 Summarizing, Filter, and obtain detailed data. ...

 Provides trend analysis, exception reporting and drill-down capabilities. ...
 Can integrate external and internal data.
 Easy to use. ...
 Can be directly used by Eksekuti. ...
 Presenting information in a variety bentu report.

Contrasting EIS & DSS

DSS are primarily used by middle and lower level managers to project the future, EIS's primarily serve the control
needs of higher level management. .... At the heart of an EIS lies access to the data

Difference between EIS and DSS

Last Updated: 25-08-2020

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1. Decision Support System (DSS) :

It‘s a computer based system that aids the process of decision making. It is an interactive, flexible and adaptable
computer system. It is especially developed for supporting the solution of a non-structured management problem
for improved decision making.
DSS are a specific class of computerized information system that supports business and organizational decision-
making activities.

Advantages :
 It saves time.
 Enhances efficiency.
 Reduces the cost.
 It improves personal efficiency.
 It increases the decision maker satisfaction.
Disadvantages :

 Information Overload.
 Status reduction.
 Over-emphasize decision making.
2. Executive Information System (EIS) :
EIS is defined as a system that helps the high-level executives to take policy decisions. This system uses high level
data, analytical models and user friendly software for taking decisions. It is a structured, automated tracking system
that operates continuously to keep everything managed. It provides exception and status reporting capabilities.

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Advantages :
 Easy to use.
 Ability to analyze the trends.
 Time management.
 Efficiency.
 Enhances business problem solving.
Disadvantages :
 Functions are limited.
 Difficult to keep current data.
 System can run slow.
 Less reliable.

Difference between DSS and EIS :

DSS EIS

It is used by professionals. It is used by executives.

It is required for day-to-day It is required for strategic plans and

operations. procedures.

It deals with semi and unstructured

data. It deals with only unstructured data.

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DSS EIS

It consists of only internal It consists of both internal and external

information. information.

It allows taking non-routines It allows taking decisions to meet the

decisions. strategic goals of the organization.

It is used with mainframes, micro and

distributed systems. It is used with distributed systems.

Development EIS

Executive information systems development in an emerging economy

Author links open overlay panelDavidArnottaWarapornJirachiefpattanabPeterO'Donnella

Show more

https://doi.org/10.1016/j.dss.2004.11.010Get rights and content

Abstract

This paper addresses executive information systems (EIS) development in an emerging economy. In particular, it
examines EIS development in Thailand, a nation that is more representative of the majority of emerging economies
in the South East Asian region than the four Asian Tigers (Singapore, Hong Kong, Taiwan and South Korea). Case

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studies of the development of four systems in large Thai organizations are presented. The analysis of the cases and
their comparison to a benchmark study gives rise to the concept of EIS cultural fit, a concept that adds to our
understanding of the reasons for the success and failure of EIS projects in emerging economies. The cases also
raise questions about using outsourcing as a development strategy for EIS in emerging economies.

 Previous article in issue

 Next article in issue
Executive information systems

Developing country

Systems development

David Arnott is the Professor of Information Systems at Monash University and Director of the Monash DSS
Lab. His main research areas evolutionary systems development methods and managerial information behaviours.
He is the author of over 60 scientific papers in the decision support area. He was Conference Chair of the 2004
IFIP International Conference on Decision Support Systems held near Florence, Italy.
Dr. Waraporn Jirachiefpattana is the Assistant Professor and the Head of Information Systems Management
Department, School of Applied Statistics, National Institute Development Administration (NIDA), Bangkok
Thailand. Her research interests include the development of business intelligence systems, and cultural impacts.
She is also consulted by various Thai government departments to develop Information Technology Master Plan.
Peter O'Donnell is a Lecturer in the Decision Support Systems Laboratory at Monash University in Melbourne,
Australia. His current research interests include conceptual modelling for decision support systems and the
usability of business intelligence interfaces. He maintains close links with the business intelligence industry in
Ch

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aracteristics of management rep

orting
systems
Week 16
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Expert Systems & Applied Artificial Intelligence

What is AI?

In the most basic sense, Artificial intelligence (AI) is a tool that makes it possible for machines to learn from
experience, adjust to new inputs and perform human-like tasks. While the hype created around this technology is
tremendous and unwarranted for as it is still in its early stages, But, AI has evolved to provide specific features
including:

Artificial Intelligence Characteristics

1. Deep Learning

Deep learning is a machine learning technique that teaches computers to do what comes naturally to humans, to
learn by example.
Innumerable developers are leveraging the latest deep learning innovative technologies to take their business to
the new high. There are large numbers of fields of Artificial Intelligence technology like autonomous vehicles,
computer vision, automatic text generation and the like, where the scope and use of deep learning are increasing.

Take an example of Self Driving feature in cars like Tesla(Autopilot), where Deep learning is a key technology
behind enabling them to recognize a stop sign or to distinguish a pedestrian from a lamppost.
2. Facial Recognition

Artificial Intelligence has made it possible to recognize individual faces using biometric mapping. This has lead
to pathbreaking advancements in surveillance technologies. However, this has also faced a lot of criticism for
breach of privacy.

For example, ClearView AI, an American technology company, offers surveillance technology for law agencies
to monitor entire cities with a network of CCTV Cameras exactly assigning each and every citizen with their Social
Credit Score in real-time.
3. Automate Simple and Repetitive Tasks

AI has the ability to execute the same kind of work over and over again without breaking a sweat. To understand
this feature better, let‘s take an example of Siri, a voice-enabled assistant created by Apple Inc. It can handle so
many commands in a single day!
From asking to take up notes for a brief, to rescheduling the calendar for a meeting, to guiding us through the
streets with navigation, the assistant has it all covered. Earlier, all of these activities had to be done manually which
used to take up a lot of time and effort. The automation would not only lead to increased efficiencies but also result
in lower overhead costs and in some cases a safer work environment.

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4. Data Ingestion

With every passing day, the data that we are all producing is growing exponentially, which is where AI steps in.
Instead of manually feeding this data, AI-enabled not just gather this data but also analyzes it with the help of its
previous experiences. AI, with the help of neural networks, analyzes a large amount of such data and helps in
providing a logical inference out of it.

5. ChatBots

Chatbots are software to provide a window for solving customer problems‘ through either audio or textual input.
Earlier the bots used to respond only to specific commands. If you say the wrong thing, it didn‘t know what you
meant. The bot was only as smart as it was programmed to be.

The real change came when these chatbots were enabled artificial intelligence. Now, you don‘t have to be
ridiculously specific when you are talking to the chatbot. It understands language, not just commands.

For example, Watson Assistant, an AI-powered assistant, developed by IBM which can run across various
channels like websites, messengers, and apps and requires zero human intervention once programmed.
There are a lot of companies that have moved on from voice process executives to chatbots to help customers solve
their problems. The chatbots not only offer services revolving around issues that the customers face but also
provides product suggestions to the users. All this, just because of AI.

6. Quantum Computing

AI is helping solve complex quantum physics problems with the accuracy of supercomputers with the help of
quantum neural networks. This can lead to path-breaking developments in the near future. For example, A pioneer
in this field is Google AI Quantum whose objective is to develop superconducting qubit processors and quantum
assisted optimization for varied applications.
7. Cloud Computing

Next Artificial Intelligence characteristics is Cloud Computing. With such a huge amount of data being churned
out every day, data storage in a physical form would have been a major problem. However, the advent of Cloud
Computing has saved us from such worries. Microsoft Azure is one of the prominent players in the cloud
computing industry. It offers to deploy your own machine learning models to your data stored in cloud servers
without any lock-in.

Artificial Intelligence Characteristics

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 Deep Learning. Deep learning is a machine learning technique that teaches computers to do what comes naturally
to humans, to learn by example. ...
 Facial Recognition. ...
 Automate Simple and Repetitive Tasks. ...
 Data Ingestion. ...
 ChatBots. ...
 Quantum Computing. ...
 Cloud Computing.

What are the Capabilities and Characteristics of the Expert Systems?

 Capturing of the expertise.

 Codifying the expertise.
 Duplicating the expertise.
 Transferring the expertise.
 Saving the human effort's time.
 Saving on the maintenance.
 Up – dating the knowledge base on the regular basis.

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Application of Expert Systems

The purpose of an expert system is to solve the most complex issues in a specific domain. The Expert System can
resolve many issues which generally would require a human expert. It is based on knowledge acquired from
an expert. It is also capable of expressing and reasoning about some domain of knowledge.

Roles in expert systems development

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Advantages
Advantages of Using Expert System:

 1] Providing consistent solutions: ...

 2] Provides reasonable explanations: ...
 3] Overcome human limitations: ...
 4] Easy to adapt to new conditions: ...
 1] Lacks common sense: ...
 2] High implementation and maintenance cost: ...
 3] Difficulty in creating inference rules: ...
 4] May provide wrong solutions:

Advantages, Disadvantages, Characteristics of Expert System in Artificial Intelligence

ER R S BANGER MARCH 17, 2019 LEAVE A COMMENT

Expert System is a computer program that imitates the judgment and behavior of a human or an organization that
has expert knowledge and experience in a particular field.

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Generally, there is a knowledge base in this type of system in which there is an accumulated experience and there
is a set of rules to base the basis of knowledge in each particular situation described for the program. Sophisticated
specialist systems can be enhanced with a knowledge base or addition of rules set.
Click Here – Expert System in Artificial Intelligence with Applications
Advantages of Expert System
There are many important benefits of expert system. All mention below such as
 Enhance delicious quality.
 Reduces the cost of consulting an expert for solving the problem.
 Provide a quick and efficient solution to a problem.
 Offers high reliability.
 It can tackle a very complex problem that is difficult for a human expert to solve.
 Gathers scare expertise and use it efficiently.
 Consistency – they provide consistent answers for repetitive decisions.
 The expert system is available 24/7 and is never on holiday or off sick when needed.
 The computer uses all the information it has, unlike a human expert who may forget and make mistakes.
 Capture expertise before it is lost.
 Reduce dependence upon one expert.
 Reduce/eliminate error and inconsistency.
 Allow non-experts to reach scientifically supportable conclusions.
 Knowledge sharing
 Automation and improve decisions.
 Dissemination expertise and normalization decisions.
Disadvantages of Expert System

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Click Here – Components and Architecture of Expert System

There are some limitations of expert system in various areas such as
 More expensive
 Taken more time
 Higher Consumption
 Not flexible
 No having common sense
 Having more bugs in its programs
 Not able to adapt to altering environments
 Difficult to maintain
 Having legal and ethical areas
 More expensive in development area
 Having narrow focus
 Required ground verification
 No capable to process for complex automation
 Require update manually
 Development for specific domain
Characteristics of Expert System
There are several feature and characteristics of expert system in artificial intelligence.
 Better reliable compare to human expert
 Better explanation ability like as human expert‘s capability.
 Expert system has adequate response time that means it is capable to perform any task with in small time period,
compare to human expert to chase the target point.
 Symbolic representations is used for knowledge (rules, networks or frames), and it is able to execute their inference
with using of symbolic computations which is closed resemble computations of natural language.
 Expert system has to link with metaknowledge that means it is known about themselves with own knowledge
limitations and abilities. Due to implementation of metaknowledge, it makes more interactive and simple for
several data representations.
 Expert system has better expert knowledge, so it is able to deliver accurate solution with applying of its knowledge.
 Expert system is very domain specific like as diagnostic expert system is designed to troubleshoot computers, and
it is able to perform all activities like as human expert.
 Expert system is able to justify reasoning that means, it allows you to ask expert system for justifying its generated
solution otherwise suggestion provided by it. Expert system offers to users entire rules and facts for using to chase
their answers.
 Expert system is able to explain that how to solve any specific by it, and due to this, user‘s confidence is getting
high.

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 Expert system is designed with using special programming languages like as LISP and PROLOG. These coding
languages are simpler for addition, elimination or substitution with using of current rules and memory management
abilities. These programming languages are offering few advantages to expert system such as – mix of integer and
real variables, better memory management procedures, Extensive data manipulation routines, Incremental
compilation, Tagged memory architecture, and more.
 Human experts like as perishable but other side of expert system like as permanent.
 It is capable to distribute the human‘s expertise.
 It has less cost of consulting an expert for several domains like as diagnostic expert system.
 Expert system has higher level of expertise, so it is able to solve any problem with better efficiency and accuracy.
 Better flexibility to solution of all problems.
 Separates knowledge from control
 Focuses expertise
 Reasons heuristically
 Limited to solvable problems

_Thanks for your motivation and ……………………………………….

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