MANAGEMENT INFORMATION SYSTEM

UNIT – 1

Information System Meaning

An Information System is a combination of Software, hardware, and telecommunication

network to collect useful data, especially in an Organization.

Data

 Data includes raw facts that must be turned into information in order to be useful and
valuable
 Data can be described as unprocessed facts and figures. Plain collected data as raw facts
cannot help in decision-making. However, data is the raw material that is organized,
structured, and interpreted to create useful information systems.
 Data is defined as 'groups of non-random symbols in the form of text, images, voice
representing quantities, action and objects'.
Information Meaning
Information is the product of data processing. Information is interrelated data.
Information is equivalent to finished goods produced after processing the raw material. The
information has a value in decision making. Information brings clarity and creates an intelligent
human response in the mind.
Information Definition
According to Davis and Olson : “Information is a data that has been processed into a form that
is meaningful to recipient and is of real or perceived value in the current or the prospective
action or decision of recipient.”

Difference between data and Information ( refer in notes)

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 Classification of Information

Information

Characteristic Application

 Strategic Information  Planning Information

 Tactical Information  Control Information
 Operational Information  Knowledge Information
 Organizational Information
 Operational Information
 Database Information

Classification by Characteristic

Based on Anthony’s classification of Management, information used in business for decision-

making is generally categorized into three types −

 Strategic Information − Strategic information is concerned with long term policy decisions
that defines the objectives of a business and checks how well these objectives are met. For
example, acquiring a new plant, a new product, diversification of business etc, comes under
strategic information.
 Tactical Information − Tactical information is concerned with the information needed for
exercising control over business resources, like budgeting, quality control, service level,
inventory level, productivity level etc.
 Operational Information − Operational information is concerned with plant/business level
information and is used to ensure 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.

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Classification by Application

In terms of applications, information can be categorized as −

 Planning Information − These are the information needed for establishing standard norms
and specifications in an organization. This information is used in strategic, tactical, and
operation planning of any activity. Examples of such information are time standards, design
standards.
 Control Information − This information is needed for establishing control over all business
activities through feedback mechanism. This information is used for controlling attainment,
nature and utilization of important processes in a system. When such information reflects a
deviation from the established standards, the system should induce a decision or an action
leading to control.
 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, culture in the light of its objectives. Karl Weick’s Organizational Information
Theory emphasizes that an organization reduces its equivocality or uncertainty by collecting,
managing and using these information prudently. 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. 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 construes large quantities of information that
has multiple usage and application. Such information is stored, retrieved and managed to
create databases. For example, material specification or supplier information is stored for
multiple users.

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Importance of Information System

1. Store and Analyze Information

Most information systems function as delivery vehicles for data stored in databases.
Databases support the operations and management aspects of a business. With a database, the
collected data is stored and organized. Examples of databases include employee records and
product catalogues. When it comes to analyzing collections of stored data, data warehouses are
built by information systems from a number of data sources to analyze the data. These archival
data are mined for relevant information to develop and launch new products, reach out to
potential customers as well as to serve the existing customers with accuracy and efficiency.

2. Simplify Business Processes

The integration of information systems in a business enables easier management of

certain business processes so as to save on time and labour. For instance, buyers can have a
seamless shopping experience at an online retailer as they can select a particular product display
based on best-selling items, price range and customer ratings. With the help of information
systems, these products are neatly organised which enhances the shopping experience. Besides
that, business managers can utilise information systems for inventory management. That way,
they can determine the inventory needed, reorder with their suppliers in addition to track and
receive shipments in a timely and systematic manner.

3. Facilitate Decision-Making

In terms of decision-making, information systems such as group decision support systems

(GDSS), video conferencing and Internet-based networks assist in connecting business owners
and stakeholders regardless of location. As a sub-category of information systems, management
information systems (MIS) also aid in the decision-making process by providing relevant,
accurate and complete information. Basically, MIS is created to present an overview of the
situation or to highlight a missing piece of information. MIS features such as self-checking and
cross-checking can reduce errors. Enterprises that use management information systems ensure

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that all decision-makers can work from the same set of data together and make their decisions
based on identical information. For business owners who want to track performance to see if it is
aligned with present business goals, it is good to explore all the features of management
information systems to know where the business stands among competitors in the same
marketplace.

4. Access to Full Data Control

Companies can easily access a pool of data collected and control with full autonomy for
business purposes. As information systems store a large amount of private data and facilitate
thousands of business transactions on these data every day, a business must have a robust
security system that secures the information systems against external threats. If not careful,
company and customer data will be misused by unauthorised third-parties. Hence, companies
and organisations should consider hiring graduates of information system course programmes,
especially those who possess a masters in information systems or other postgraduate levels.

Components of Information System (refer in notes)

Resources of Information system

There are 5 resources of information system which are given below:

1. Hardware:
The system components which can physically touch – the system unit (tower, desktop,
laptop), internal devices and peripheral devices (keyboards and monitors) – are called
hardware and it is important to remember that basic definition: The hardware are the parts of
the computer that are tangible and can be touched.
Peripheral devices are provided in many other ways, but think of them as hardware that
surrounds the system unit. These peripherals devices may be connected by wired or wireless
technology to the system unit. Generally peripherals devices communicate with the interior
components of the system unit via installed software. The software itself is intangible and can’t
be touched physically.

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2.Software:
We know that, the hardware needs to know what to do, and that is the role of software.
The software may be divided into two types: first system software and second application
software. Primary piece of system software is the operating system, such as Windows or iOS,
which manages the hardware’s operation. Application software is perform for specific tasks,
such as handling a spreadsheet, creating a document, or designing a Web page.
3.People:
The human element is the most important component of information system and the
people that are needed to run the system and the procedures they follow so that the knowledge
in the huge databases and data warehouses can be turned into learning that can interpret what
has happened in the past and guide future action
4.Data:
Data is one of the most important component which is generally store in form of
information in a database system and a database is a place where data is collected and from
which it can be retrieved by querying it using one or more specific criteria.All types of data
store in warehouse without knowing whatever form that an organization needs. The databases
and data warehouses have assumed even greater importance in information systems with the
emergence of “big data, ” a term for the truly massive amounts of data that can be collected
and analyzed.
5.Network:
The network is defined as a system in which more than the system is connected through a
transmission media. It provides an interface to receive a piece of information or send an
information. It is also one of the best resources in the information system.

Management Information System(MIS)

Meaning: Management Information System (MIS) is the study of People, Technology,
Organization and the relationship among them.

Definition: Management Information System (MIS) is a planned system of collecting, Storing

and dissemination data in the form of information needed to carry out the functions of
Management

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Importance of MIS

 Management Information system is very important for decision-making in professional

and personal life.
 For the functioning of organizational decision-making is important.
 Today there is a cut-throat competition and it is imperative to take effective decisions for
that manager needs accurate information to beat the competition.
 MIS facilitates the better flow of information.
 MIS is implemented at all levels of the organization.
 Collection of data, processing of information and controlling of information is done by
the MIS applications.
 MIS is needed for the functioning role, for performance role, and for support.
 Management Information system helps in planning, programming, controlling and
decision-making.
 If you want to make your career in MIS then it is a great opportunity.
 Nowadays no firm can work efficiently without the MIS application.
 The training of MIS is necessary before joining any company.
 MIS training is based on advance basic excel, VBA and dashboard, MS access and
payroll processing

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 UNIT -2

System meaning

System is an information system used for decision making and for the co-ordination,
control, analysis and visualization of information in an Organization

Characteristic of a system

1. Organization:

 It implies structure and order.

 It is the arrangement of components that helps to achieve objectives.

 For example : Computer System ;Organization of various components like input

devices, output devices, and Storage devices

2. Interaction:

 It refers to the manner in which each component functions with other components
of the system.

 For example: The main memory hold the data that has to be operated by the ALU
(Arithmetic logic Unit)

3. Interdependence:

 It means that parts of the organization or computer system depend on one another.

 They are coordinated and linked together according to a plan.

 One subsystem depends on the output of another subsystem for proper

functioning.

4. Integration:

 It refers to the holism of systems. It is concerned with how a system is tied

together.

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 5. Central Objective:

 A system should have a central objective.

 Objectives may be real or stated.

 Although a stated objective may be the real objective, it is not uncommon for an
organization to state one objective and operate to achieve another.

 The important point is that users must know the central objective of a computer
application early in the analysis for a successful design and conversion.

Components of System Approach (Refer diagram in notes)

The system approach envisions the organization as made up five components:

 Inputs - Raw Materials, Human Resources, Capital, Information, Technology

 A Transformational Process - Employee Work Activities, Management Activities,

Operations Methods

 Outputs - Products or Services, Financial Results, Information, Human Results

 Feedback - Results from outputs influence inputs.

 The Environment - These components make up internal and external factors that affect
the system.( Consumer, competitors, Government, Suppliers)

Types of System

1.Conceptual Systems
a. Are theoretical and explanatory in the nature.
b. Provide the much needed clarification.
c. Provide theoretical framework for which there may or may not be any real life counterpart.
d. E.g. of such systems can be philosophy, theology etc.
2.Empirical Systems
a. Are very practical, specific and also very operational in the nature.
b. Can be based on the conceptual system.
c. Examination system, surgery act as very good examples of the empirical systems.

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3. Open Systems
a. Involve continuous interaction with the environment.
b. So exchanges the information, material, energy with the environment.
c. Is open and also self organizing in the nature.
d. Is also adoptive or adaptive to the changing environment as it is flexible.
4. Closed Systems
a. Shuns any kind of the exchange with the environment.
b. Is rigid in nature.
c. Is not at all amenable to the change.
d. Is also self contained.
e. Is somewhat isolated in the nature.
f. Is having a well defined boundary.
g. Is not at all adaptive in the nature.
5. Natural Systems
a. Such Systems exist and also abound in the nature.
b. Are also not at all the results of the human endeavors.
c. Rivers, mountains, minerals etc. are the major examples of the natural Systems.
6. Artificial Systems
a. Are manufactured (man made).
b. Examples of such Systems are dams, canals, roads, machines, factories etc.
7. Probabilistic Systems
a. Based on the predictability of the behavior or the outcome.

8. Deterministic Systems
a. In such Systems, the interaction of the elements is known.
b. As the behavior of the elements is pre determined, it becomes possible to work upon the
reaction well in the advance.

System Development life Cycle

1. Problem identification
2. Requirement analysis

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 3. System design
4. Implementation
5. Testing
6. Deployment
7. Maintenance

1) Problem identification

This is the first and initial phase of SDLC. In this phase, the analyst, identify the actual
problem for which they want a solution or create a system. The main concern of this phase is to
recognize the real problem, if the problem is significant then the solution will be useful otherwise
the solution will not be fruitful or it will be useless. If the experts work on the unrealistic
problem then the solution is a waste of time, efforts, costs, etc. So, the problem must be realistic.
To identify the problem, the analyst pays more attention to it.

2) Requirement analysis

After getting the problem identification, the next step is to work on requirement analysis. In
requirement gathering, the analyst thinks about the solution to a problem. The requirement
analysis is a detailed analysis which includes the answer to different questions like –

 What is the problem?

 What is the solution?
 Is solution feasible?
 How much time required solving the problem?
 How it will be resolved?
 How many resources will be required?
 Do we have sufficient resources to solve the problem?
 What kind of environment required by solution?

These are the few key questions for which an analyst finds real solutions. It shows the proper
planning to get all solutions in our hands before solving the actual problem. Without proper

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planning or without knowing the actual problem to work upon its solution or implement a system
always fails.

3) System design

System design is a blueprint of the solution. It is similar to before making a car the
designers make a sketch of the car and then connect all parts of the car according to its
predefined design.

The process follows the steps i.e. first creates logical design and gets design confirmation
by top management or decision-makers of the company. During the designing process, if any
changes required, analysts redesign it. The changes are easily done because the logical design
reflects on papers. So, it is good to make the required changes on papers rather than the physical
system. Changes in the physical system always make losses to the company in terms of wastage
of time, resources, money, etc. So, logical design is the most important concept of designing.
Once they confirm the logical design then the analyst looks after on its physical design.

Physical designing shows the proper connection of different components of the system
according to its logical system.

4) Implementation

The implementation shows the final integration of the system. Implementation describes
how the product will get converted it into its final form. There are different components
associated with the system and during the implementation process, all parts of the system are
linked with one another according to a proper plan so that they can work properly and fulfill the
objective of the system.

5) Testing

Testing is a process to validate the objective of the system through various steps. It is a
mechanism that makes sure that the system is working properly or not. After the implementation
of the system, it is tested on different aspects. Different inputs are given and test the output

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accuracy. The system is also tested on different parameters like accuracy rate, system feasibility,
system performance, load balancing, etc.

The testing phase is one of the most important phases of SDLC. Once, experts are 100%
sure about the system’s smooth-running process, performance, accuracy, etc then only they
forward it on the next phase.

6) Deployment

After successful testing of the developed system, it is deployed to the concern candidate
or company for which it has designed. Deployment is a process to deploy the new one designed
system at clients/customers end.

7) Maintenance

Maintenance is the last and one of the most important phases of SDLC. Maintenance of
the system gives long life to the new system. After the successful deployment of the system at
clients end, it is compulsory to maintain it from time to time. As, if any system maintains
properly then the life cycle of the system increases and the organization can utilize the system for
a long time which will be profitable to the companies.

SYSTEM ANALYSIS

 System analysis plays a certain role in the development of the MIS

 System analysis helps to achieving the objectives.
 The system analysis begin with the output design which itself ensures that the
information needs are consider.

 It is a process of collecting and interpreting facts, identifying the problems, and

decomposition of a system into its components.

 System analysis is conducted for the purpose of studying a system or its parts in order
to identify its objectives. It is a problem solving technique that improves the system
and ensures that all the components of the system work efficiently to accomplish their
purpose.

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  Analysis specifies what the system should do.

OBJECTIVES OF SYSTEM ANALYSIS

1. System analysis helps in discovering means to design systems where sub-system may have
apparently conflicting objectives.

2. It helps in achieving inter compatibility and unity of purpose of sub-systems.

3. It offers a means to create understanding of the complex structures.

4. System analysis helps in placing each sub-system in its proper perspective and context, so that
the system as a whole may best achieve its objectives with minimum available resources. It, thus
creates synchronization between systems and objectives.

5. System analysis means to tradeoff between functional requirements of a sub-system

(components) and its immediately related sub-systems.

6. It helps in understanding and comparing functional impacts of sub-systems to the total system.

TOOLS AND TECHNIQUES OF SYSTEM ANALYSIS

1. Grid Charts:
Grid charts are used to represent the relationship between two sets of factors in a tabular
method. A grid chart analysis is helpful in eradicating unnecessary reports or unnecessary data
items from reports. It can also be used for identifying the responsibilities of various managers for
a particular sub-system. Grid chart can be very effectively used to trace the flow of various
transactions and reports in the organization.

2. System Flow Chart:

A system flowchart is a pictorial or diagrammatic representation of the logical flow of
operations and information of an organization. It depicts the clear relationship between input
processing and output considering the entire system. A set of standard symbols are commonly
used for the construction of system flow charts.

3. Decision Tree:
Some decisions involve a series of steps. The outcome of the first decision guides the
second; the third decision depends on the outcome of the second, and so on. In such type of

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situations of decision making uncertainty surrounds each step, so we face uncertainty, piled on
uncertainty.

Decision trees are the model to deal with such kind of problems. They are also very
important in decision making in a probabilistic situation where various opinions (or alternatives)
can be drawn (as if they are the branches of a tree) and the final outcomes can be understood.

4. Simulation:
The simulation model describes the operation of the system in terms of individual events,
components of the system. Mainly, it involves the development of a model which is mostly
mathematical in nature rather than directly describing the behavior of the overall system.

In particular, the system is divided into elements whose behavior is predicted in terms of
probability distributions.

The inter-relationships between the elements also are built into the model. Thus,
simulation provides a means of dividing the model building job into smaller component parts and
then combining these parts in their natural order and allowing the computer to present the effect
of their interaction on each other.

Simulation is nothing more or less than the technique of performing sampling

experiments on the model of the system. The experiments are done on the model rather than on
the real system itself only because the experiments on the real system would be too inconvenient,
expensive and time-consuming.

5. Decision Tables:
Decision tables are a graphical method of representing a sequence of logical decisions. It
is prepared in a tabular form. It lists all possible conditions and associated set of actions. A
decision table consists of the four parts-condition stub, condition entries, action stub, and action
entries.

SYSTEM DESIGN

 System design refers to the process of defining the architecture, modules, interfaces,
data for a system to satisfy specified requirements.

 It is a multi-disciplinary field that involves trade-off analysis, balancing conflicting

requirements, and making decisions about design choices that will impact the overall
system.

 System Design is the process of designing the architecture, components, and interfaces
for a system so that it meets the end-user requirements.
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  System Design for tech interviews is something that can’t be ignored! Almost every
IT giant whether it be Facebook, Amazon, Google, Apple or any other ask various
questions based on System Design concepts such as scalability, load-balancing,
caching, etc. in the interview.

 This specifically designed System Design tutorial will help you to learn and master
System Design concepts in the most efficient way from basics to advanced level.

SOME STEPS FOR APPROACHING A SYSTEM DESIGN :

1. Understand the requirements: Before starting the design process, it is important to

understand the requirements and constraints of the system. This includes gathering
information about the problem space, performance requirements, scalability needs, and
security concerns.
2. Identify the major components: Identify the major components of the system and how they
interact with each other. This includes determining the relationships between different
components and how they contribute to the overall functionality of the system.
3. Choose appropriate technology: Based on the requirements and components, choose the
appropriate technology to implement the system. This may involve choosing hardware and
software platforms, databases, programming languages, and tools.
4. Define the interface: Define the interface between different components of the system,
including APIs, protocols, and data formats.
5. Design the data model: Design the data model for the system, including the schema for the
database, the structure of data files, and the data flow between components.
6. Consider scalability and performance: Consider scalability and performance implications of
the design, including factors such as load balancing, caching, and database optimization.
7. Test and validate the design: Validate the design by testing the system with realistic data
and use cases, and make changes as needed to address any issues that arise.
8. Deploy and maintain the system: Finally, deploy the system and maintain it over time,
including fixing bugs, updating components, and adding new features as needed.

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STEPS IN IMPLEMENTING SYSTEM
1. Identify your stakeholders.

If you’ve appointed an executive sponsor for the system implementation, that person can
support the project manager in identifying stakeholders.

Key stakeholders might be:

 Someone from your information technology (IT) department

 A member of your business systems team
 Representatives from any team whose operations will be impacted by this new system

2. Get everyone on board.

Critical to the implementation of anything new is getting buy-in from key stakeholders
and users. If employees who will use this system aren’t bought into the need for the system, or
the system itself, implementation won’t stick.

How do you gain buy-in? By understanding what stakeholders are looking for.

For example, your CFO may want to know what the business case is for this
implementation. What will the ROI be? Your IT or business systems teams may be curious about
integrations or technical details. Your operations team may care about how the implementation
of this new system will impact their existing workflows.

Come prepared with resources and documentation to help each of these stakeholders feel
more confident. Give them time to read these resources and ask questions to better understand
the decision they’re making.

3. Anticipate resistance.

While change is often necessary, it’s not always readily accepted. Successful change
management factors in resistance.

As early as possible, senior leadership should communicate the “why” behind the system
implementation. Change can be difficult—particularly for people who are behaviorally-wired to
not jump right into new ideas.

Transparency is critical. Share the answers to the following questions with your workforce:

 Why are you making these changes?

 What results do you expect to see?
 What happens if you maintain the status quo?

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4. Identify champions for change.

Internal champions play a key role in change initiatives. They help to socialize ideas and
gain buy-in at an individual level.

System implementation champions could be employees with a high patience drive. They
tend to look at change from different angles and evaluate it fully before committing. Recruit their
help in supporting teammates who may be resistant or unhappy with the change.

5. Create a customized communication plan.

This new system is going to tie together data points or streamline processes. But that
doesn’t mean everyone’s going to be gung-ho about this change to business process.

Tailor your communication according to each employee’s Reference Profile or behavioral

pattern. Employees with a high degree of formality may want all the details about how this
system will work, what it will integrate with, and how it will impact current business processes.
By sharing a document of the implementation plan, you can ease their concerns.

You might also be strategic about which channels you use for communication. For
example, those same high formality employees may love walking through your project
requirements spreadsheet. However, more highly extraverted employees may want to have a
meeting to talk through the new system and its implications on their work.

6. Provide adequate training.

The final step to system implementation is to ensure employees know when and how to
use this new system.

Be explicit in defining who should be using this system and for which purposes. Ensure
there are thorough and diverse learning resources employees can use to onboard. This may
include user manuals, hands-on training, and access to digital learning for the system (e.g.,
Salesforce’s Trailhead).

SYSTEM ANALYST

The system analyst is overall responsible for the development of a software. He is the
crucial interface between users, programmers and MIS managers. He conducts a system’s study,
identifies activities and objectives and determines a procedure to achieve the objective. He has a
very important role in the development of a system.

A Systems analyst is a person who is overall responsible for development of a software.

He is the computer professional charged with analyzing, designing and implementing computer

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based information systems. He is the crucial interface among users, programmers and MIS
managers. A Systems analyst can be defined as follows:

A Systems analyst is a computer specialist who translates business problems and

requirements into information systems and acts as liaison between IS (Information Systems)
department and rest of the organization.
The analyst conducts a systems study, identifies activities and objectives and determines
a procedure to achieve the objectives. He is the key member of both MIS organization and the
software project team. He is a person with unique skills, experience, personality and common
sense. His role has been emerging with advances in technology.

FUNCTIONS OF SYSTEM ANALYST

1. Defining user requirements

A systems analyst has the responsibility of observing users and their requirements from a
system. This can be done through conversational interviews with the users and anticipating the
new needs of users from already existing systems. This helps in identifying the requirements
from new systems via examination of current systems and updating configurations for new
systems.

2. Prioritizing requirements

Systems analysts use social and analytical skills in prioritizing system specifications.
Most enterprise systems have a lot of requirements but these are frequently constrained due to a
lack of resources.

Different users in an organization have different needs from a system, but a systems
analyst helps to prioritize the user’s needs in accordance with the available resources. This helps
to ensure that maximum productivity is obtained from a working system.

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3. Problem analysis

Systems analysts tend to observe data and facts about an operating business. They use
technological techniques in identifying problems and removing unnecessary details so as to
enable the fulfillment of real needs from a system.

4. Drawing specifications

Systems analysts also assign the relevant responsibilities of managing system

requirements to the right individuals and team members. They specify programming tasks to
programmers and managerial tasks to managers. They also document these system tasks in
detail, using specification documents, and review the output to ensure that it matches the
required specification.

5. System design and evaluation

Systems analysts guide the development of every system in an organization, from the
specification of requirements to the designing of the system itself. They ensure that the built
systems correspond to the system specifications by carrying out system evaluation. They also test
the performance of the built system to ensure that it meets the required performance as specified.

6. Keeping up to date with technological advancements

Systems analysts are real agents of change in the use of technology in an organization.
They tend to observe the overall use of technology in an organization and work to keep up with
evolving technological demands by replacing outdated technologies with the latest ones.

They frequently encounter the challenge of having the users accept the changes and,
therefore, involve the users in the development process. They do this by conducting interviews
with the systems’ users and identifying possible user needs and requirements in order to integrate
the latest technology for users. From time to time, systems analysts check to make sure that an
organization is working with the latest technological systems, thus giving rise to high
productivity and output.

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 UNIT – 3

TRANSACTION PROCESS SYSTEM MEANING

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.

IMPORTANCE OF TPS

 ATPS allows for the user/customer to have a level of reliability and confidence during
transactions.
 The TPS keeps a stable database and reduces risk of loss of user information in the
occurrence of terminal or network failure.
 TPS is swift and cost-effective.
 The TPS is able to effectively recover from operating system failure and also handle
system failures depending on what stage the transaction was in when the system failure
occurred.
 The TPS can process large amount of data in real time or batches.
 TPS is available in both batch and real time process
 The use of TPS in organizations is a key feature in improving customer service and
satisfaction.
 The use of TPS in businesses minimizes the occurrence of error during data transactions.
 TPS can function anywhere. This means that location, geography, language, or methods
are a barrier to using a transaction processing system.
 The TPS is designed to be user friendly.
 It is versatile as it encourages the use of online payment system in real time and increases
more payment methods.

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COMPONENTS OF TPS

1. Inputs

An input is an original request for a product or payment that an outside party sends to a
company's TPS. If your company uses batch processing, its TPS stores groups of inputs and then
processes them at a later time. In comparison, if your company uses a real-time system, it
processes each input as it arrives.

Inputs typically include:

 Invoices
 Bills
 Coupons
 Custom orders

2. Processing system

The processing system reads each input and creates a useful output, such as a receipt. This
element can help you define the input data and what the output should be. Based on the kind of
TPS your company is using, processing times can vary.

3. Storage

The storage component of TPS refers to where a company keeps its input and output data. Some
companies store these documents in a database. The storage component ensures the organization,
security and accessibility of every document for later use.

For example, if a vendor would like to confirm that your company has paid an invoice, you can
check your system's storage to find the invoice and determine if you delivered a payment.

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4. Outputs

TPS outputs are documents the system generates once it completes processing all inputs, such as
receipts the company stores in its records. These documents can help validate a sale or
transaction and provide important reference information for tax and other official purposes.

For example, if a vendor sends your company an invoice, you can pay the invoice and send the
vendor confirmation of your payment. Then, you can amend the original invoice and mark it as
"paid" in the company's TPS.

DECISION MAKING MEANING

 Decision-making is a cognitive process that results in the selection of a course of action

among several alternative scenarios.

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

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

 In a decision-making process, we choose one course of action from a few possible

alternatives. In the process of decision-making, we may use many tools, techniques, and
perceptions.

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

 Usually, decision-making is hard. Majority of corporate decisions involve some level of

dissatisfaction or conflict with another party.

Types of Decision Making

The managers or non-managers have to make decisions at some point to get their organizational
goals done. These decisions are categorized further. The types of decision making in an
organization are as follows:

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1. Programmed And Non-Programmed Decisions:

Programmed decisions are routine and repetitive in nature. These decisions deal with
common and frequently occurring problems in an organization such as buying behaviour of
consumers, sanctioning of different types of leave to employees, purchasing decisions, salary
increment, etc.
Non-programmed decisions are not routine or common in nature. These are related to
exceptional situations in which guidelines or routine management is not set. For example,
problems arising from a decline in market share, increasing competition in the business
environment. The majority of the decisions taken by managers do fall in this non programmed
category.
2. Operational and Strategic Decisions:

Operational decisions are just the normal functioning of the organization. These decisions
do not require much time and take a shorter time as compared to other decisions taken. Ample of
responsibilities are delegated to subordinates. The main decision is to create harmony in an
organization and to see whether the management is proper or not.
Strategic decisions include all present issues and problems. The main idea is to achieve
better working conditions, better equipment, and efficient use of existing equipment, etc. These
all fall under this category. Usually, strategic decisions are taken by top-level management.
3. Organizational and Personal Decisions:

If the decision is taken collectively keeping in mind the organizational goal, it is known as the
organization goal, and if the manager takes any decision in the personal capacity (affecting
his/her life). It is known as personal decisions. These decisions may sometimes affect the
functioning of the organization as well. For example, if the employee has decided to leave the
organization, it may affect the organization. The authority of taking personal decisions cannot be
delegated and is dependent on the individual itself.
4. Major and Minor Decisions:

These are classified as the type of decision-making in management where decision-related to

purchase of new premises is a major decision. These are taken by top management whereas the
purchase of stationery is a minor decision. Minor decisions can be taken by the superintendent.

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5. Individual and Group Decisions:

When the decision is taken by an individual, it is categorized as an individual decision.

Usually, routine decisions are taken by individuals within the policy framework of the
organization.
Group decisions are taken by a group of individuals in the form of a standing committee.
Generally, important types of decisions in management are shifted to this committee. The main
aim of a group decision is to involve the maximum number of individuals in the process of
decision making.
6. Tactical and Operational Decisions:

Decisions that are pertaining to various policy matters in the organization are known as
policy decisions. These are taken by top management and do have a long-term impact on the
organization. For example, decisions regarding the location of the plant or volume of production.
These are tactical decisions
Operational decisions are all day-to-day decisions that need to be taken for the proper
functioning and operation of the organization. These can be taken by middle or lower-level
managers. For example, the Calculation of bonuses given to each individual is an operational
decision and is performed by middle or lower-level managers.
These were the types of managerial decisions that are performed by top, middle and lower-level
management in the organization to get things done in alignment and to achieve the organizational
goal effectively and efficiently.

DECSION SUPPORT SYSTEM

Decision support systems (DSS) are interactive software-based systems intended to help
managers in decision-making by accessing large volumes of information generated from various
related information systems involved in organizational business processes, such as office
automation system, transaction processing system, etc.

DSS uses the summary information, exceptions, patterns, and trends using the analytical
models. A decision support system helps in decision-making but does not necessarily give a
decision itself. The decision makers compile useful information from raw data, documents,
personal knowledge, and/or business models to identify and solve problems and make decisions.
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Characteristics of a DSS

 Support for decision-makers in semi-structured and unstructured problems.

 Support for managers at various managerial levels, ranging from top executive to line
managers.
 Support for individuals and groups. Less structured problems often requires the
involvement of several individuals from different departments and organization level.
 Support for interdependent or sequential decisions.
 Support for intelligence, design, choice, and implementation.
 Support for variety of decision processes and styles.
 DSSs are adaptive over time.

Components of a DSS

Following are the components of the Decision Support System −

 Database Management System (DBMS) − To solve a problem the necessary data may
come from internal or external database. In an organization, internal data are generated by
a system such as TPS and MIS. External data come from a variety of sources such as
newspapers, online data services, databases (financial, marketing, human resources).
 Model Management System − It stores and accesses models that managers use to make
decisions. Such models are used for designing manufacturing facility, analyzing the
financial health of an organization, forecasting demand of a product or service, etc.
Support Tools − Support tools like online help; pulls down menus, user interfaces,
graphical analysis, error correction mechanism, facilitates the user interactions with the
system.

EXPERT SYSTEM MEANING

 An expert system is an advanced computer application that is implemented for the

purpose of providing solutions to complex problems, or to clarify uncertainties through
the use of non-algorithmic programs where normally human expertise will be needed.

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  Expert systems are most common in complex problem domain and are considered as
widely used alternatives in searching for solutions that requires the existence of specific
human expertise.

 The expert system is also able to justify its provided solutions based on the knowledge
and data from past users.

 Normally expert systems are used in making business marketing strategic decisions,
analyzing the performance of real time systems, configuring computers and perform
many other functions which normally would require the existence of human expertise.

Components of Expert System

An expert system has many core system components to function and interfaces with
individuals of various roles. The following diagram displaying expert system components and
human interfaces.

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 The major components of expert system are:

 Knowledge base – a set of rules as representation of the expertise, mostly in IF THEN

statements.
 Working storage – the data which is specific to a problem being solved.
 Inference engine – the code at the core of the system which derives recommendations from the
knowledge base and problem-specific data in working storage.
 User interface – the code that controls the dialog between the user and the system.

APPLICATIONS OF EXPERT SYSTEM

 There are several major application areas of expert system such as agriculture, education,
environment, law manufacturing, medicine power system etc.
 Expert system is used to develop a large number of new products as well as new
configurations of established products.
 When established products are modified to include an expert system as a component or
when an established product item is replaced with an expert system, the expert system
supported entity is called intelligent.
 Expert systems are designed and created to facilitate tasks in the fields of accounting,
medicine, process control, financial service, production, education etc.
 The foundation of a successful expert system depends on a series of technical procedures
and development that may be designed by certain related experts.

Expert System in Education

In the field of education, many of the expert system’s application are embedded inside
the Intelligent Tutoring System (ITS) by using techniques from adaptive hypertext and
hypermedia. Most of the system usually will assist student in their learning by using adaptation
techniques to personalize with the environment prior knowledge of student and student’s ability
to learn. Expert system in education has expanded very consistently from micro computer to web
based and agent based technology. Web based expert system can provide an excellent alternative
to private tutoring at any time from any place where internet is provided. Agent based expert
system will help users by finding materials from the web based on the user’s profile. Expert

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system also had tremendous changes in the applying of methods and techniques. Expert system
are beneficial as a teaching tools because it has equipped with the unique features which allow
users to ask question on how, why and what format. When it is used in the class environment,
surely it will give many benefit to student as it prepare the answer without referring to the
teacher. Beside that, expert system is able to give reasons towards the given answer. Expert
system had been used in several fields of study including computer animation, computer science
and engineering, language teaching business study etc.

Expert system in Agriculture

The expert system for agriculture is same as like other fields. Here also the expert system uses
the rule based structure and the knowledge of a human expert is captured in the form of IF-
THEN rules and facts which are used to solve problems by answering questions typed at a
keyboard attached to a computer. For example, in pest control, the need to spray, selection of a
chemical to spray, mixing and application etc. The early, state of developing the expert systems
are in the 1960’s and 1970’s were typically written on a mainframe computer in the
programming language based on LISP. Some examples of these expert systems are MACSYMA
developed at the Massachusetts Institute of Technology (MIT) for assisting individuals in solving
complex mathematical problems. Other examples may be MYCIN, DENDRAL, and CALEX
etc. The rises of the agricultural expert system are to help the farmers to do single point
decisions, which to have a well planning for before start to do anything on their land. It is used to
design an irrigation system for their plantation use. Also some of the other functions of
agricultural expert system are:

® To predict the extreme events such as thunderstorms and frost.

® To select the most suitable crop variety.

® Diagnosis of liver stock disorder and many more.

Expert System for a particular decision problem

The expert system can be used as a stand alone advisory system for the specific
knowledge domain. It also can provide decision support for a high level human expert. The main
purposes, the rises of the expert system are as a delivery system for extension information, to
provide management education for decision makers and for dissemination of up-to-date scientific

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information in a readily accessible and easily understood form, to agricultural researchers,
advisers and farmers. By the help of an expert system, the farmers can produce a more high
quality product to the citizen.

Expert System for Text Animation (ESTA)

The idea behind creating an expert system is that it can enable many people to benefit
from the knowledge of one person – the expert. By providing it with a knowledge base for a
certain subject area, ESTA can be used to create an expert system for the subject:

ESTA + Knowledge base = Expert System

Each knowledge base contains rules for a specific domain. A knowledge base for an
expert system to give tax advice might contain rules relating marital status, mortgage
commitments and age to the advisability of taking out a new life insurance policy. ESTA has all
facilities to write the rules that will make up a knowledge base. ESTA has an inference engine
which can use the rules in the knowledge base to determine which advice is to be given to the
expert system user. ESTA also features the ability for the expert system user to obtain answers to
questions such as “how” and “why”. ESTA is used by a knowledge engineer to create a
knowledge base and by the expert system user to consult a knowledge base

ARTIFICIAL INTELLIGENCE (AI)

Artificial intelligence (AI), the ability of a digital computer or computer-

controlled robot to perform tasks commonly associated with intelligent beings. The term is
frequently applied to the project of developing systems endowed with the intellectual processes
characteristic of humans, such as the ability to reason, discover meaning, generalize, or learn
from past experience. Since the development of the digital computer in the 1940s, it has been
demonstrated that computers can be programmed to carry out very complex tasks—as, for
example, discovering proofs for mathematical theorems or playing chess—with great
proficiency. Still, despite continuing advances in computer processing speed and memory
capacity, there are as yet no programs that can match human flexibility over wider domains or in
tasks requiring much everyday knowledge. On the other hand, some programs have attained the
performance levels of human experts and professionals in performing certain specific tasks, so

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that artificial intelligence in this limited sense is found in applications as diverse as
medical diagnosis, computer search engines, and voice or handwriting recognition.

UNIT-4

OFFICE AUTOMATION SYSTEM

It is a type of system generally intended to provide a greater degree of office automation.
This is accomplished through a combination of hardware and software solutions. The primary
goal is to allow data to be shared and manipulated with or without the need for human
intervention. In other words, office automation equipment and software will help to streamline
the workflow within a business environment.

It also addresses the other obvious concerns of quality, accuracy, security, and
transparency. Now that we have taken a quick look at some basic principles, it is a good idea to
examine the advantages of office automation in greater detail. You will then be able to make an
informed choice based on the needs of your growing enterprise.

“Human error is just a part of life, but it can be hugely costly especially in an office
environment. We’ve put automation systems in place in order to ensure we eliminate the risk
involved, leaving us with clear and accurate data.”

THE ADVANTAGES OF OFFICE AUTOMATION

1. Targeted Data Storage & Handling Solutions

2. Accurately Managing Data
3. Streamlined Information Sharing
4. Second-to-None Levels of Accuracy
5. Cost Effective
Technology has improved the automation process in many ways and while some of the
advantages outlined below may appear to be rather obvious, others might come as a bit of a
surprise. Either way, there is no doubt that the following metrics will apply to your organisation.
Let’s take a closer look.

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Targeted Data Storage and Handling Solutions
Any modern document management system is engineered with several purposes in mind.
Once again, the main intention is to replace legacy systems while offering a greater degree of
end-user control. Here are some of the most common benefits:

 To create files and documents

 To edit information when needed
 To save and share any changes with applicable stakeholders
Whether referring to standard documents, PDF files, spreadsheets, or images, the ability to
automate common office tasks is critical. It can involve a massive amount of data that needs
to be stored, retrieved or shared. A document management system reduces (or eliminates) the
need for more traditional in-house systems that might already be outdated.

Accurately Managing Data

Knowing how to automate office work will also involve data management techniques.
Keep in mind that this is different from creating and/or manipulating information. It
instead facilitates managers to have practical oversight within real-time settings. Ticker systems,
invoicing, task delegation, and team reminders are a handful of examples of what office
automation can provide.

These factors apply equally to large or small organisations who may not possess the in-
house time or resources to accurately keep abreast of what needs to be accomplished. This
ultimately leads to costly errors and in some cases, the brand reputation of the firm itself may be
called into question. On a final note, it should be stressed that greater degrees of oversight will
help to ensure higher levels of customer satisfaction.

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Streamlined Information Sharing

The advantages of office automation can also be seen in the ability to share information
with the click of a button. Applications specifically designed to transfer data between two or
more parties have become essential within the modern workplace. Critical from a collaborative
point of view, this type of document workflow automation can likewise be used to share archived
documents, perform departmental audits and identify any pain points that might need to be
corrected.

Office Automation for Second-to-None Levels of Accuracy

Even the smallest of mistakes can have profound consequences within today’s office
environment. This is when targeted automation solutions rise head and shoulders above
traditional approaches. Computers and dedicated software programs are always more precise
than their human counterparts. From calculating the ROI of a specific project to analysing big
data, the simple fact of the matter is that this level of precision would hardly be possible
otherwise.

Cost-Effective Solutions
Time is money. So, it only stands to reason that modern office automation packages will help
to dramatically reduce costs. Complex tasks that might have required a dedicated in-house team

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can now be outsourced to automation software. Several unique advantages should also be
considered:

 Network communications reduce the need to travel to far-off locations.

 Hard copies are becoming redundant (advantageous in terms of saving office space
while also protecting the environment).
 The need to procure additional resources is reduced.
 The user-friendly nature of these packages ensures that training times are kept to a
minimum.
Businesses using bespoke office automation equipment are much more likely to reduce their
expenditures and enjoy higher profit margins over time.

EXECUTIVE INFORMATION SYSTEM

EIS is an information system based on computer which generally serves the

information needs of the top level management of an organization. Check Complete details for
EIS System like – What is Executive Information System?, Components of Executive
Information System, Advantages of Executive Information System, Application of Executive
Information System etc. Now scroll down below n check more details for “Executive
Information System”

COMPONENTS OF EIS

 USER INTERFACE: User Interface allows the users to communicate with the EIS.
User interface must be easy to use and understand. Users should not be required to
understand the complex query languages and other mathematical or statistical formulas.
 HARDWARE: Hardware refers to devices by which users give input, data processing
and the output is received. Users may give input via keyboard and mouse and CPU may
be used for processing and output may be received on monitor or from printer.

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  SOFTWARE: Software is required for various calculations, providing graphical view to
the management, storing data in the form of Information, etc. Software allows user to get
information in the form it is actually required.
 TELECOMMUNICATION: In today’s world the most important thing is
communication. Users may require transferring information from one point to another
point. The information might be a little confidential in nature. The secrecy of the
information should be well maintained.
ADVANTAGES

 EIS is easy for use and saves time of the top level management of the organization.
 EIS provide access to timely information in a rapid manner.
 EIS provides extensive online analysis tools.
 EIS can easily be given a DSS support.
FUNCTIONAL INFORMATION SYSTEM
Functional Information System is based on the various business functions such as
Production, Marketing, Finance and Personnel etc. These departments or functions are
known as functional areas of business. Each functional area requires applications to perform
all information processing related to the function. The popular functional areas of the
business organization are:

 Financial Information System

 Marketing Information System

 Production/Marketing Information System

 Human Resource Information System

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Financial Information System

Financial information system is a sub-system of organizational management information

system. This sub-system supports the decision-making process of financial functions at the level
of an organization.

Marketing Information System

This sub-system of management information system provides information about various

functions of the marketing system of an organization. Marketing is another functional area of
the business organization, which is engaged in marketing (selling) of its products to its
customers.

Important functions of the marketing process include the following.

• The marketing identification function

• The purchase motivation function.
• The product adjustment function
• The physical distribution function
• The communication function
• The transaction function
• The post-transaction function

Production /manufacturing Information System

Manufacturing or production information system provides information on production

/operation activities of an organization and thus facilitates the decision-making process of
production managers of an organization. The main decisions to be taken in manufacturing
system are:

• Product Design

Human Resources Information System

This functional information system supports the functions of human resource management
of an organization. The human resource management function, in its narrow sense, it also

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known as personnel management .The function involves:

 Manpower planning
 . Staffing
 Training and development
 Performance evaluation, and
Separation activities

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 UNIT-5

TELECOMMUNICATION REVOLUTION

A revolution in wireless communication began in the first decade of the 20th century with
the pioneering developments in radio communications by Guglielmo Marconi, who won the
Nobel Prize in Physics in 1909, and other notable pioneering inventors and developers in the
field of electrical and electronic .

At the 1932 Plenipotentiary Telegraph Conference and the International Radiotelegraph

Conference in Madrid, the two organizations decided to merge to form the International
Telecommunication Union (ITU).[11] They defined telecommunication as "any telegraphic or
telephonic communication of signs, signals, writing, facsimiles and sounds of any kind, by wire,
wireless or other systems or processes of electric signaling or visual signaling (semaphores)."

The definition was later reconfirmed, according to Article 1.3 of the Radio
Regulations (RR), telecommunication, which defined it as "Any transmission, emission or
reception of signs, signals, writings, images and sounds or intelligence of any nature by wire,
radio, optical, or other electromagnetic systems".

E-MAIL

Electronic mail (email or e-mail) is a method of transmitting and receiving messages

using electronic devices. It was conceived in the late–20th century as the digital version of, or
counterpart to, mail (hence e- + mail). Email is a ubiquitous and very widely used
communication medium; in current use, an email address is often treated as a basic and necessary
part of many processes in business, commerce, government, education, entertainment, and other
spheres of daily life in most countries.

Email operates across computer networks, primarily the Internet, and also local area
networks. Today's email systems are based on a store-and-forward model. Email servers accept,
forward, deliver, and store messages. Neither the users nor their computers are required to be
online simultaneously; they need to connect, typically to a mail server or a webmail interface to
send or receive messages or download it.

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 Originally an ASCII text-only communications medium, Internet email was extended
by Multipurpose Internet Mail Extensions (MIME) to carry text in other character sets and
multimedia content attachments. International email, with internationalized email addresses
using UTF-8, is standardized but not widely adopted.

Email (electronic mail) is the exchange of computer-stored messages from one user to
one or more recipients via the internet. Emails are a fast, inexpensive and accessible way to
communicate for business or personal use. Users can send emails from anywhere as long as they
have an internet connection, which is typically provided by an internet service provider.

Email is exchanged across computer networks, primarily the internet, but it can also be
exchanged between both public and private networks, such as a local area network. Email can be
distributed to lists of people as well as to individuals. A shared distribution list can be managed
using an email reflector. Some mailing lists enable users to subscribe by sending a request to the
mailing list administrator. A mailing list that's administered automatically is called a list server.

The TCP/IP suite of protocols provides a flexible email system that's built on basic
protocols, including Simple Mail Transfer Protocol (SMTP) for sending mail, and Post Office
Protocol 3 (POP3) for receiving mail. Alternatively, the Internet Message Access Protocol
(IMAP) can be used for receiving mail, as it enables access to email from any device, anywhere.
With POP3, the email message is downloaded from the email service and stored on the
requesting device and can only be accessed using the same device.

Email messages are usually encoded in American Standard Code for Information
Interchange (ASCII) format. However, users can also send non-text files -- such as graphic
images and sound files -- as file attachments. Email was one of the first activities performed over
the internet and is still the most popular use. A large percentage of the total traffic over the
internet is email.

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INTERNET

Internet is a network of networks and has different types of internet. It consists of

public, private, academic, business, and government networks of local to global scope, linked by
a comprehensive arrangement of electronic, wireless, and optical networking technologies.

TYPES OF INTERNET

There are many types of internet, a few are discuss below:

Digital subscriber line (DSL) Internet:

DSL is a form of broadband communication in a wired form that transfers data. It may
use phone lines and fiber-optic cables for transmission. This service is deliver through your
phone landline. You have to subscribe to a broadband service company and pay a monthly fee
for its access.

Cable Internet:

Local Cable Company gets your Internet service via the cable rather than your phone
line. This is another type of broadband service, and it’s relatively fast. Check with your cable
company for monthly fees.

Satellite Internet:

In few areas, satellite Internet providers may be the only option left for access to the
Internet. This requires that you install a satellite dish to have access to the internet in your area.
DISH and Comcast are two providers of satellite connections to check into.

Wireless hotspots/ Wi-Fi Internet:

Wireless hotspots and Wi-Fi both are wireless connections to the Internet. They don’t
need wires and cables to give access to the internet to the devices. It is a very common type of
internet type these days. Wireless hotspots and Wi-Fi connections are use in many public places,

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such as airports, cafes, and hotels. Access to Wi-Fi will be automatically detected by your phone
or other device and can get benefited from it.

Phone Sim Internet (2G/3G/4G):

Smartphone gives you the option to connect to the Internet. You can have access To the
Internet through your phone provider’s 3G or 4G network. Some tablets which have a mobile
sim card port can also have access to the 3g 4g internet. Users can also buy add-on devices that
allow other computers to use a cell phone network too.

Internet Service Provider (ISP)

Internet service providers connect to your device for access to the internet. Devices include a
laptop, mobile phone, computer, and tab, etc. Every device can get access to the internet via the
ISP. It plays a very useful role to have access to an internet connection. Without ISP the device
cannot get connect to the internet. When selecting an ISP, make sure you fulfill all the
requirements of the ISP. You should consider:

 The type of internet service

 The speed of the internet
 The charges of internet
 The quality of services
 The number of users to connect an internet connection
 The location of the users
 The bandwidth capacity

Advancements of Internet

The Internet gives a capacity so amazing and general that it very well may be utilized for
practically any reason that relies upon data, and it is open by each person who associates with
one of its constituent organizations. It upholds human correspondence through social media,
electronic mail (email), “visit rooms,” newsgroups, and sound and video transmission and
permits individuals to work cooperatively in various areas. It upholds admittance to
computerized data by numerous applications, including the World Wide Internet. The Internet

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has ended up being a producing ground for an enormous and developing number of “re-
organizations” (counting auxiliaries of conventional “blocks and cement” organizations) that do
a large portion of their deals and administrations over the Internet.

Eliminated All the Communication Barriers

The progressions in the friendly correspondence are of specific importance. Albeit simple
apparatuses still have their place in certain areas, new advances are proceeding to make strides
each day, changing our correspondence practices and potential outcomes — especially among
more youthful individuals. The Internet has taken out all correspondence obstructions. On the
internet, the regular requirements of existence vanish and there is a bewilderingly wide scope of
open prospects. The effect of social media applications has set new ways of communication; a
user can only enjoy them when they are aware of what is internet? The advancement of the
Internet today is being formed transcendently by moment, versatile interchanges. The versatile
Internet is a new upset. Far-reaching Internet availability through cell phones and tablets is
prompting an inexorably portable reality: we are not attached to any single explicit gadget, and
everything is in the cloud.

Permits to Stay in Touch

The Internet has essentially made our lives more straightforward and helpful. The world
is readily available now, on account of the web. At the point when we perceive how it has
changed the situation of the cutting-edge world, we can’t resist the urge to see its significance. It
is utilized in all circles of life now. I think the genuine worth of online media is that you can
keep in contact from one second to another with individuals who truly make a difference to you.
Web-based media let you share encounters and data; they get individuals and thoughts in contact
in a split second, without wildernesses. Kinship, companionship, and fortitude — social
peculiarities that have been around however long humankind itself — have been liberated from
the regular limitations of reality and would now be able to flourish in a rich assortment of ways.

Knowledge Awareness
The development of the Internet on the planet gives numerous chances to many
individuals throughout the planet in various ways. At the point when understudies are thought of,

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 the utilization of the Internet is primarily for social and amusement purposes. Nonetheless, it is
unmistakable that the Internet gives social association and amusement, yet additionally scholarly
and logical data too. Also, the Internet can be utilized as an instrument to become familiar with
the most recent news from one side of the planet to the other just as getting any sort of data that
fills various needs like learning more data about a leisure activity or wellbeing. In this way, one
might say that the Internet is the wellspring of spreading data rapidly to an enormous crowd and
of going past the restriction of reality.

INTRANET

An intranet can be defined as a private network used by an organization. Its primary

purpose is to help employees securely communicate with each other, to store information, and to
help collaborate. Modern intranets use social intranet features that allow employees to create
profiles and to submit, like, comment, and share posts.

USES OF AN INTRANET

An intranet software is primarily used by organizations as a tool to:

 Share organizational updates

 Store files
 Connect employees
 Collaborate with teams across borders
 Increase productivity
 Give employees a voice in the organization

EXTRANET

An extranet is an organization’s private network and its available only for selected users. It’s a
way to connect to third parties like vendors, customers, and partners in a secure and controlled
way. The users typically have a login mechanism such as username and password to access the
network. Extranet in simple terms provides a secure network for an organization to share
information with relevant people outside the organization. It is part of an organization’s
intranet divided via a firewall.

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Examples:
1. An e-commerce site exchanges information with its retailers, a supplier’s through an
extranet network.
2. Multinational organizations handle their project information, clients and communicate with
another organization over an extranet network.
3. University provides an e-learning platform for their students over the extranet network.

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DIFFERENCE BETWEEN INTERNET, INTRANET AND EXTRANET

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TELECONFERENCING
Teleconferencing is essentially a live, interactive audio or audio-visual meeting that ensues
between geographically dispersed participants. Here, participants communicate via
telecommunication networks using their tablets, mobile phones, laptops, desktop computers, and
even specially designed tech-enabled meeting rooms.

TYPES OF TELECONFERENCING

There are several types of teleconferencing, including:

 Audio teleconferencing: A voice-only option. You can use your own three-way-calling
service for this or third-party teleconferencing services.
 Electronic whiteboarding: You’ll need a data and audio telecommunication connection for
this. This was initially designed to assist with distance learning by creating a believable-
looking digital classroom.
 Video teleconferencing: A live, visual connection that uses the internet to transmit crystal-
clear audio with full-motion images between various locations.
 Computer teleconferencing: Written communication between two or more computers, using
keyboard inputs and a common application.

BENEFITS OF TELECONFERENCING FOR COMPANIES

 Better Integration: Enjoy improvements like advanced calendar integration features. Use
event tags to help you categorize event types with this.
 Simplified Scheduling: Use scheduling features that let clients schedule time with you,
according to your availability.
 Greater Streamlining: Screen sharing helps streamline presentations given during
teleconferencing, as you’ll be able to demonstrate better and share data more effectively.
 Enhanced Collaboration: Use group chat to simultaneously and instantly collaborate with
multiple attendees.
 Improved Communication: Attendees can also share whiteboards for enhanced
communication. Use chat to forward instant messages, a communication tool more effective
than email.

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  Added Security: Companies can enjoy highly secured meetings with participant access
codes. These codes are crucial to prevent unauthorized people from accessing confidential
meetings.
 Greater Inclusivity: Share files, slide presentations, pictures, text documents, and both visual
and audio files with your fellow attendees through web sharing.

VIDEO CONFERENCING

Video conferencing is a type of virtual, online meeting where two or more people talk
through a video and audio call in real-time. Video conferencing has been around for years, but it
skyrocketed in popularity as school and work shifted into the home during the 2020 pandemic. If
video calling is still relatively new in your world, don’t fret.

Types of Video Conferencing

A video conference can be:

 Point-to-point. A one-on-one conversation involving two participants in different locations. A

video call with a client or a customer service rep, for example, is point-to-point video
conferencing.
 Multi-point. Also called “group video conferencing” or “group calls,” this is a conversation that
involves three or more people in at least two locations. It could be a business meeting with some
participants at the office and others remote, or a webinar where a person streams to viewers in
several locations.
What Is Required for Video Conferencing?

To join or host any basic video conference, you need:

 A desktop or laptop computer

 A web camera

 A microphone

 Speakers or headphones

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 High-speed internet access

 An account with a video conferencing service

 Most laptops come with a camera, microphone and speakers built in, and those are sufficient for
basic conferencing. For more privacy, you can connect headphones, which usually also include a
microphone. For a sharper picture, purchase a third-party webcam.

What Is a Virtual Office?

A virtual office gives businesses a physical address and office-related services without
the overhead of a long lease and administrative staff. With a virtual office, employees can work
from anywhere but still have things like a mailing address, phone answering services, meeting
rooms, and videoconferencing.

ENTERPRISE RESOURCE PLANNING (ERP)

Enterprise resource planning (ERP) is a type of software system that helps organisations
automate and manage core business processes for optimal performance. ERP software
coordinates the flow of data between a company’s business processes, providing a single source
of truth and streamlining operations across the enterprise. It’s capable of linking a company’s
financials, supply chain, operations, commerce, reporting, manufacturing and human resources
activities on one platform.

Most companies have a finance and operational system in place, but siloed systems can’t
go beyond everyday business processes or help with future business growth. As companies
expand and their needs change, their systems should keep up with them. In this article, you’ll
learn what ERP is and why having software in place that keeps up with your needs can help run a
more agile and efficient business.

BENEFITS OF ENTERPRISE RESOURCE PLANNING

1. Real Time Information

One of the main enterprise resource planning advantages is the availability of real time
information in your workflow. With an ERP you can connect your office and your field instantly
to enable instant access of reports and documentation. Real time information enables you to send
instant notifications/reminders and keep on top of any discrepancies in your workflow.

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 With real time information you can more accurately schedule your technicians and view
live status updates of your current jobs. The benefits of an ERP system will ensure that business
functions are kept up to date. There is nothing worse than dealing with out-of-date information
and making easily avoidable mistakes because of it. Out-of-date information will cause gaps in
your schedule and create chaos amongst your team. When you have the power of real time
information you can increase efficiency and keep everyone on the same page.
2. Centralised System
With a centralised system in your hands, you gain full visibility over all your day-to-day
running’s. You can instantly access inventory management from the field to check on a part
number or access asset history with just a click. With increased efficiency and data accuracy in
your business, you can streamline your business with a centralised system.
3. Boosted Efficiency in Your Workflow
With an ERP system, you can save on the amount of time that goes into entering and
analyzing data. As a part of your business plan, you need to have efficiency amongst your team.
With ERP solutions you can cut admin time by up to 24%. When you don’t have to handle pesky
double data entry and excessive paperwork you can streamline your workflow and boost your
efficiency.
4. Improved CRM
Not only will an ERP solution benefit your business, but your customers will love it too.
Your customer relationship management or CRM is vital in keeping consistent and ongoing
work from your customers.
The advantage of an ERP software helps your team concentrate on nurturing long lasting
customer relationships through real time information and fast customer reporting. When you
have a centralised database, you can send your clients information with just a click and ensure
they are kept in the loop. With automation in your ERP software, you can meet customer
expectations from quote to invoice and everything in between.
Information is key and when you have provided your customers with the information they need
for their assets, they will be more likely to stay with your business longer.
5. Consistency in Your Business Processes
In the field service industry, it is important to have consistency in your business. The
benefits of an ERP solution mean that you have access to up-to-date information, checklists and

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templates. In the field your technicians can access checklists that you have created to ensure
every maintenance test is performed accurately.
It can be all too easy to lose track of information while in the field and with a centralised
ERP system, you can be assured that all your data is in the one easy to access place.
With consistency in your workflow, you can better predict asset trends and workflow
patterns. When you can predict when an asset might need new parts or when your quiet periods
are, you can take measures to avoid low performance.
6. Better Safety and Compliance
With the ability to access SWMS in your ERP solution, you can ensure your regulatory
compliance is kept up to speed across all your job sites.
With the amount of regulatory compliance and safety measures that are necessary on high-risk
sites, it is vital that your technicians have up to date SWMS in the field. Not only does SWMS
and compliance keep your team safe on site but helps to avoid fines from auditors and site
managers.
The benefit of an ERP software is the availability of templates and safety checklists for
your technicians in the field. When you can set up safety measures and hazard reduction
practices for your team, you can ensure to keep everyone on site safe and sound. With the
centralised software of an ERP, technicians can also update any new hazards while in the field
(without the pesky trip back to the office).
7. More Opportunities for Growth
When you have high visibility over all your current jobs, budgets and projections, you
can better prepare for your future. With ERP systems, you can help to reduce equipment
downtime and wasted double data entry in your business. When you have more control over
every aspect of your business and you move your workflow from Chaos Town to Smart Town,
you can prepare to scale up and grow your business.
You gain more opportunities for growth with an ERP system with the ability to grow
your customer relationships, expand your job management and cut down on wasted time and
money. With an ERP system you can save 10+ hours a week that would have been lost on
wasted travel time, double data entry and chasing your tail. This can easily grow to saving up to
520 hours a year – that’s a lot of extra time to have on your hands.

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8. Smoother Supply Chain Management
ERP software will smooth out your supply chain management and shorten your sales
cycle to be more efficient. When you have the ability to streamline your workflow with an ERP
solution, you can be more decisive in your sales cycle and get paid faster. With tools like status
triggered notifications and messaging, you can ensure as soon as your technician has completed
the job, an invoice will be sent to your customer – no more forgetting paperwork or putting it off
until Monday.

CHALLENGES OF AN ERP SYSTEM

1. Your Initial Cost

Do you know how much it costs for an initially implemented solution vs a cloud-based
ERP software? Enterprise resource planning systems provide a major investment for businesses,
but it comes at a cost. Depending on what type of ERP platform you choose, you may end up
paying a subscription or an upfront cost. For many on premises automating processes, there is
usually a large upfront cost for your software. On the other hand, cloud-based software uses a
subscription type fee and can be upgraded or downgraded over time as needed.
2. Upgrades and Maintenance
Just like your assets, your software will also require maintenance and upgrades from time
to time. This is often a forgotten cost for many businesses and can end up being an unpleasant
surprise.
Similar to your maintenance checklist for your assets, you need to ensure that your ERP
systems are running at peak performance and up to date with the latest enterprise solution
software updates. Your maintenance costs for breakdowns or bug fixes can vary over time. You
need to ensure that the software you have chosen has the ability to grow with your business and
evolve with the latest modern ERP software updates.
3. Over Complicated Systems
While the list of complex systems for ERP grows, you may feel overwhelmed with your
available choices. Consider the old saying, “If it’s not broke don’t fix it”. Does your business
have space and time for complicated systems that sometimes take up more time and energy than
they are worth?

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 Implementing ERP software can be a long and complicated process if you don’t have the
right tools on hand. ERP software requires a lot of time and consideration for successful
implementation and this needs to be taken into account before you choose your ERP platform.
With most ERP systems, you will find that you have to hire ERP consultants to assist in your
implementation and deployment if you don’t have the right in-house skills.
4. Time Consuming Customisation
While customisation is a great feature of many ERP vendors and can give your business a
competitive advantage over other businesses in the field, it can also be a challenge. ERP software
requires time to be implemented and part of this process is customising your software to suit
your business operations. Management software can be both a blessing and a curse with the
ability to specifically tailor your software to suit your business needs you can ensure you are
capturing the right information that you need.

ELECTRONIC PAYMENTS
An electronic payment is a digital transaction between two parties, with e-
payment types including ACH, cards, bank transfers, digital wallets, mobile pay, and
more.

Any number of different factors can guide businesses toward the types of
electronic payment that might work optimally for them. There are pros and cons for
each of the common electronic payment types, and it’s sometimes tricky for financial
decision makers to identify the type of e-payments that works best for their processes.

TYPES OF ELECTRONIC PAYMENTS

1. Credit Cards

Modern cards date to 1950 with the introduction of the Diners Club card. The primary
intention was for business travel and entertainment expenses, where the card holders would pay
for charges incurred that month. These charge cards are also referred to as non-revolving credit
cards, because the balance would have to be paid in full at the end of each billing period.

Today, credit cards from providers like Visa, Mastercard, and American Express function in a
variety of ways for businesses. In comparison to charge cards, credit cards have revolving credit

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lines where card holders have the option to pay the balance in full at the end of each billing
cycle. That is, based upon the card issuers terms.

Merchant accounts and payment gateways function as the traditional one-two punch for business
credit payments. First, money arrives in the merchant account, a holding zone where money sits
before being disbursed to individual bank accounts. Payment gateways connect businesses with
these merchant accounts.

There are also all-in-one tools, such as PayPal, that combine merchant accounts and payment
gateways. Simplified processing tools such as Stripe offer competitive rates and generally no
setup or monthly fees, with easy enrollment.

2. Virtual Payment Cards

In Stampli and Treasury Webinars’ payments study, just 4% of companies preferred to pay their
suppliers with virtual cards for business or ghost cards. All the same, for those in the know,
this form of payment is a great way to pay suppliers.

3. Bank Transfers

It’s gotten easier for customers to pay by means of bank transfer thanks to the internet. At the
time of payment, they simply provide their bank routing and account numbers, which allows
sufficient funds to be withdrawn from their accounts.

The procedure for businesses to do this on a customer’s behalf is straightforward, with the
business providing the bank with a reference number that is then factored into the transaction.
Sometimes, the business will have a different bank than their customer. In these instances, the
transaction is processed through a clearing house.

Bank transfers can include any sort of electronic transfer, be it ACH, wire, and so on. It’s a
versatile and secure means of payment.

4. eChecks via the Automated Clearing House, or ACH

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People might be familiar with the Automated Clearing House, or ACH as the method for direct
deposit of paychecks, with more than 90 percent of workers preferring to get paid this way. But
employee direct deposit is not the only use for ACH.

These days, electronic checks, or eChecks, also use ACH to get funds where they need to go.
With the help of the clearing house, eChecks process safely, securely, and quickly, generally via
the internet, but also sometimes via telephone or fax.

Using eChecks requires finding an eCheck provider, and businesses will recognize some benefits
from using eChecks.

5. Digital Wallet

Digital wallets are becoming ubiquitous, with nearly 30 billion payments made with eWallets
in a recent year.

There are several reasons for the number of payments made via eWallet. As Merchant
Maverick notes, “Digital wallet is a broad term covering software that electronically stores credit
card numbers, debit card numbers, loyalty card numbers, etc. on your laptop, tablet, phone, or the
cloud.”

eWallet offers an array of functionality, including: the ability to pay at stores; make peer-to-peer
payments; make online payments; hold funds, coupons, and loyalty cards; and store IDs and
transit tickets.

6. Mobile Pay

The proliferation of smartphones in recent years has also coincided with a dramatic rise in
mobile payments. Juniper Research projects that the number of mobile contactless payments
made will exceed 49 billion in 2023, having grown 92% over the preceding two years.

Mobile pay functions like an actual wallet in every respect except that they keep a person from
having to schlep around cash. Otherwise, credit card and banking information can be keyed into

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them and the wallets can function seamlessly and securely. Mobile pay may be easier to use than
traditional wallets.

As smartphone adoption continues to grow in developing nations, the number of mobile

payments should keep growing.

CLOUD COMPUTING

 Cloud computing is the delivery of different services through the Internet, including data
storage, servers, databases, networking, and software.
 Cloud storage has grown increasingly popular among individuals who need larger
storage space and for businesses seeking an efficient off-site data back-up solution.
 Cloud-based storage makes it possible to save files to a remote database and retrieve
them on demand.
 Services can be both public and private—public services are provided online for a fee
while private services are hosted on a network to specific clients.
 Cloud security has become an increasingly important field in IT.

TYPES OF CLOUD COMPUTING

Cloud computing is not a single piece of technology like a microchip or a cellphone. Rather, it's
a system primarily comprised of three services: software-as-a-service (SaaS), infrastructure-as-
a-service (IaaS), and platform-as-a-service (PaaS).

1. Software-as-a-service (SaaS) involves the licensure of a software application to

customers. Licenses are typically provided through a pay-as-you-go model or on-
demand. This type of system can be found in Microsoft Office's 365.1
2. Infrastructure-as-a-service (IaaS) involves a method for delivering everything from
operating systems to servers and storage through IP-based connectivity as part of an on-
demand service. Clients can avoid the need to purchase software or servers, and instead
procure these resources in an outsourced, on-demand service. Popular examples of the
IaaS system include IBM Cloud and Microsoft Azure.12

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 3. Platform-as-a-service (PaaS) is considered the most complex of the three layers of
cloud-based computing. PaaS shares some similarities with SaaS, the primary difference
being that instead of delivering software online, it is actually a platform for creating
software that is delivered via the Internet. This model includes platforms like
Salesforce.com and Heroku.3 4

ADVANTAGES OF CLOUD COMPUTING

Cloud-based software offers companies from all sectors a number of benefits, including
the ability to use software from any device either via a native app or a browser. As a result,
users can carry their files and settings over to other devices in a completely seamless manner.

Cloud computing is far more than just accessing files on multiple devices. Thanks to
cloud computing services, users can check their email on any computer and even store files
using services such as Dropbox and Google Drive.56 Cloud computing services also make it
possible for users to back up their music, files, and photos, ensuring those files are immediately
available in the event of a hard drive crash.

It also offers big businesses huge cost-saving potential. Before the cloud became a
viable alternative, companies were required to purchase, construct, and maintain
costly information management technology and infrastructure. Companies can swap costly
server centers and IT departments for fast Internet connections, where employees interact with
the cloud online to complete their tasks.

The cloud structure allows individuals to save storage space on their desktops or laptops.
It also lets users upgrade software more quickly because software companies can offer their
products via the web rather than through more traditional, tangible methods involving discs or
flash drives. For example, Adobe customers can access applications in its Creative Cloud
through an Internet-based subscription.7 This allows users to download new versions and fixes
to their programs easily.

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DISADVANTAGES OF THE CLOUD COMPUTING

With all of the speed, efficiencies, and innovations that come with cloud computing,
there are, naturally, risks.

Security has always been a big concern with the cloud especially when it comes to
sensitive medical records and financial information. While regulations force cloud computing
services to shore up their security and compliance measures, it remains an ongoing issue.
Encryption protects vital information, but if that encryption key is lost, the data disappears.

Servers maintained by cloud computing companies may fall victim to natural disasters,
internal bugs, and power outages, too. The geographical reach of cloud computing cuts both
ways: A blackout in California could paralyze users in New York, and a firm in Texas could
lose its data if something causes its Maine-based provider to crash.

As with any technology, there is a learning curve for both employees and managers. But
with many individuals accessing and manipulating information through a single portal,
inadvertent mistakes can transfer across an entire system.

BIG DATA

 Big data is a great quantity of diverse information that arrives in increasing volumes and
with ever-higher velocity.
 Big data can be structured (often numeric, easily formatted and stored) or unstructured
(more free-form, less quantifiable).
 Nearly every department in a company can utilize findings from big data analysis, but
handling its clutter and noise can pose problems.
 Big data can be collected from publicly shared comments on social networks and websites,
voluntarily gathered from personal electronics and apps, through questionnaires, product
purchases, and electronic check-ins.
 Big data is most often stored in computer databases and is analyzed using software
specifically designed to handle large, complex data sets.

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