ICT-Information & Communication Technologies

Subject Code-TA223
Sk Mahmudur Rahman
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Q-Information system (IS)

Information system (IS) “An Information System is a combination of hardware, software, infrastructure
& trained personnel organized to facilitate planning, control, coordination & decision making in an
organization.

Q -Why Information Systems important to business?

Information systems help decision-makers at a business to make informed decisions for the company.
Information technology helps get prepared data on all areas of the business as it offers current data,
background, & trend analysis.

Efficient functioning: In order to achieve higher profitability for business, it is essential to improve the
efficiency of business operations continually. This is possible to do by continuously storing the correct
amount of stock so that firm can always give consumers what they want.

New products, services, & business models: For businesses to make new products & services, information
systems play a crucial role. I.S systems also help create new business models, & these can describe how a
company produce, design, & sell their products.

Behavioral changes: The information system can also help to communicate better between the employers
& the employee. It works better as it stores information systematically, including the documents & files
in folders that can be easily accessed & shared by the employees. This way, it oversees the flow of
information between the management & the lower-level employees.

Better decision making: Information systems assist managers in creating informed decisions with the help
of real-time data. Continuously making informed decision improves decision power & avoid wastage of
time looking for information.

Q-How Information Systems are Transforming Business?

Changes in technology & new innovative business models have transformed social life & business
practices. Smartphones, social networking, texting, emailing, & Webinars have all become essential tools
of business because that’s where customers, suppliers, & colleagues can be found.

Businesses are using information technology to sense & respond to rapidly changing customer demand,
reduce inventories to the lowest possible levels, & achieve higher levels of operational efficiency. Supply
chains have become more fast-paced, with companies of all sizes depending on just-in-time inventory to
reduce their overhead costs & get to market faster.

As newspaper print readership continues to decline, more than 168 million people read a newspaper
online, & millions more read other news sites. About 83 million people watch a video online every day, 66
million read a blog, & 25 million post to blogs, creating an explosion of new writers & new forms of
customer feedback that did not exist five years ago. Businesses are starting to use social networking tools
like Zoom, & Skype to connect their employees, customers, & managers worldwide. Many Fortune 500
companies now have Facebook pages, Twitter accounts, & Tumblr sites.

E-commerce & Internet advertising continues to expand. Google’s online ad revenues surpassed $17
billion in 2013, & Internet advertising continues to grow at more than 15 percent a year, reaching more
than $43 billion in revenues in 2013.
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Q-Business processes & information systems

Business processes & information systems are related because they share several similarities. The first
relationship between the business processes & the information systems is their purpose in achieving
business objectives. For instance, organizations use information systems to enhance the efficiency of their
operations & processes by improving the flow of information. Similarly, organizations use business
processes to enhance the efficiency of their operations by improving the flow of materials to improve
production.

Another connection between business processes & information systems is that they involve different
inputs that are processed to produce a specific output. Finally, information systems are necessary for
enhancing the execution of business processes by allowing various departments to perform tasks
simultaneously.

Q-The Relationship between IT & Business Processes

Business processes are used by organizations to coordinate, monitor & organize work activities,
information, & knowledge that is necessary for producing products or services.

Design effective business processes can be a source of competitive strength for a company if it is used to
innovate or perform better than its competitors. On the other hand, poorly designed or executed business
processes can be a liability & it can reduce efficiency & create bottlenecks & frustration between
employees.

Effective business processes & IT systems share the same goals, to improve efficiency, reduce cost,
enhance customer service & provide objective data to make educated business decisions. Therefore,
aligning the requirements of business processes & the capabilities of IT technology is crucial in achieving
the business goals & its strategic objectives.

But to do that, we need to first understand & document our processes. Conducting a process analysis
provides a good insight on how information moves between departments, what are the checkpoints or
decision-making points, interaction between different departments, customers’ requirements capturing
procedure, customer communication & interaction procedure, etc.

Once process analysis is completed, we can then make a better decision on to how to align our IT with our
business processes & whether we need to upgrade or improve our IT system. The new or upgraded IT
system should aim to improve business processes performance by removing bottlenecks, automating
repetitive tasks, increasing flexibility, enhancing accuracy, reducing errors & providing objective data for
decision making, etc.

For example, if process analysis shows that some of the check points in business process ask for approval
from multiple decision makers located in different geographical areas, by implementing a new
collaboration technology, you can decrease complexity & speed up the whole process.
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Q-Importance/Role of Information Systems for Businesses

1. Store & analyze Information: Most information systems function as delivery vehicles for data stored in
databases. Databases support the operations & management aspects of a business. With a database, the
collected data is stored & organized. Examples of databases include employee records & 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 & launch new products, reach out to potential customers as well as
to serve the existing customers with accuracy & 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 & labor. 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 & customer ratings. With the help of information systems, these
products are neatly organized which enhances the shopping experience. Besides that, business managers
can utilize information systems for inventory management. That way, they can determine the inventory
needed, reorder with their suppliers in addition to track & receive shipments in a timely & systematic
manner.

3. Facilitate Decision-Making: In terms of decision-making, information systems such as group decision

support systems (GDSS), video conferencing & Internet-based networks assist in connecting business
owners & 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 &
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 & cross-checking can reduce errors.
Enterprises that use management information systems ensure that all decision-makers can work from the
same set of data together & make their decisions based on identical information.

4. Access to Full Data Control: Companies can easily access a pool of data collected & control with full
autonomy for business purposes. As information systems store a large amount of private data & 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 & customer data
will be misused by unauthorized third-parties.

Q-A Successful Information Systems/Requirement of a Successful IS

It is difficult to define a successful information system, but in generally, a successful IS should be accurate,
reliable, used widely & work as intended. The whole quality of the organization should be promoted with
a good IS. A successful IS will do the following:

 Realize the business goals of users;

 Create the corresponding value for the company with proper costs;
 Meet the defined standards;
 Have accurate & reliable output;
 Be easy for users to learn & use;
 Be flexible.
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Q-Tools & Technologies for Collaboration & Social Business:

Many new systems for interacting with other employees, managers, vendors, & customers have been
developed.

E-mail & instant messaging: billions of messages flow every day between employees, managers, suppliers,
& investors by Emailing

Social networking: more than just a way to socialize among friends, these tools give corporations another
way for users to share ideas & collaborate with each According to its Forrester Research survey of 1,217
business decision makers worldwide late last year, 95% use social networks to some extent.

Virtual worlds: able to house online meetings, training sessions, & lounges, this type of tool is gaining
popularity as a way to meet, interact, & exchange

Virtual Meeting Systems: With a virtual meeting system users can hold strategy sessions once or twice a
week instead. Users would feel like all of their teammates are physically located in the same place if they
use telepresence anyone can share ideas & documents in real-time. Best of all, no need to travel hassles.

Google Apps & Google sites: One of the most widely used free online services for collaboration is Google
Apps/Google Sites. Google Sites allows users to quickly create online, group- editable Web sites. Google
Sites users can design & populate Web sites in minutes and, without any advanced technical skills, post a
variety of files including calendars, text, spreadsheets, & videos for private, group, or public viewing &
editing. Google Apps works with Google Sites & includes the typical desktop productivity office software
tools (word processing, spreadsheets, presentation, contact management, messaging, & mail).

Microsoft SharePoint: SharePoint is a browser-based collaboration & document management platform,

combined with a powerful search engine that is installed on corporate SharePoint has a Web-based
interface & close integration with everyday tools such as Microsoft Office desktop software products.
SharePoint software makes it possible for employees to share their Office documents & collaborate on
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Q-Challenges of strategic information system

The Humanistic Factors

 Administrators & consumers need knowledge because they are unsure about what they expect &
what information they need.
 A lack of knowledge of users' needs by designers
 A lack of knowledge from managers & customers about the designer team's coordination process.
 The administrators & consumers were not included in the machine architecture.
 Administrators in software & information technology had a lack of comprehension.

Organizational Considerations Include

 A lack of study of current structures & processes prior to device construction

 A lack of assessment of existing capacity
 Education of specialist forces is in poor condition.
 A lack of protocols, methodology, & stages in the system's growth.
 A lack of environmental assessment of management information systems.

Q-What is a Homograph attack (HAWS) in cyber security?

The internationalized domain name (IDN) homograph attack is a way a malicious party may deceive
computer users about what remote system they are communicating with, by exploiting the fact that many
different characters look alike (i.e., they are homographs, hence the term for the attack, although
technically hemolymph.

Q-Five Moral Dimensions of the Information Age/ Major ethical, social, & political issues
The major ethical, social, & political issues raised by information systems include the following moral
dimensions:
 Information rights & obligations. What information rights do individuals & organizations possess
with respect to information about themselves? What can they protect? What obligations do
individuals & organizations have concerning this information?
 Property rights & obligations. How will traditional intellectual property rights be protected in a
digital society in which tracing & accounting for ownership are difficult & ignoring such property
rights is so easy?
 Accountability & control. Who can & will be held accountable & liable for the harm done to
individual & collective information & property rights?
 System quality. What standards of data & system quality should we demand to protect individual
rights & the safety of society?
 Quality of life. What values should be preserved in an information-and knowledge-based society?
Which institutions should we protect from violation? Which cultural values & practices are
supported by the new information technology?
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Q-SOCIAL, ETHICAL & POLITICAL ISSUES RAISED BY INFORMATION SYSTEM

Information Technology has both dark & bright sides. On one end, IT has revolutionized our lives,
especially IT eases the doing of business. With the use of IT, businesses are able to increase sales & profit
& had a wide reach of potential customers. But on the other end, IT had given birth to different issues
which can ultimately result in crime.

SOCIAL, POLITICAL, & ETHICAL ISSUES

The main ethical, social, & political issues raised by an information system are:

 Information Rights & Obligations

 Accountability & Control
 System Quality
 Quality of Life
 Property Rights & Obligations

KEY TECHNOLOGY TRENDS THAT RAISE ETHICAL ISSUES

IT has heightened ethical concerns & made some laws obsolete or severely crippled. There are four key
technological trends responsible for these ethical issues:
 DOUBLING OF COMPUTER POWER: The doubling of computer power every 18 months has made it possible
for more organizations to depend on information systems for their core production processes. This has
increased our vulnerability to system errors & poor data quality.
 RAPIDLY DECLINING DATA STORAGE COSTS: Advances in data storage techniques & declining storage costs
have been responsible for increase in databases of individual employees, customers & suppliers. These
advances have made the routine violations to individual privacy both cheap & effective.
 ADVANCES IN DATA ANALYSIS TECHNIQUES: Advances in data analysis techniques for large pools enables
companies & government agencies to find out highly detailed personal information about individuals.

Q-What Is Mobile Commerce?

Mobile commerce, also known as m-commerce, involves using wireless handheld devices like cellphones &
tablets to conduct commercial transactions online, including the purchase & sale of products, online
banking, & paying bills.

M-Commerce vs. E-Commerce Electronic commerce (e-commerce) refers to the buying & selling of goods
& services over the internet. E-commerce may be conducted via a desktop computer, laptop, smartphone,
or tablet. However, e-commerce is typically associated with a computer in which a user has to find a
location with an internet connection.

Conversely, m-commerce specifically refers to transactions done via a smartphone or mobile device. With
m-commerce, users can transact anywhere provided there's a wireless internet provider available in that
area.

M-commerce transactions tend to be done with a few clicks, while e-commerce done via a tablet, laptop,
or desktop might involve more time & exploring a company's website.
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Q-Here are key benefits that m-commerce for business:

 Ease of Access: Customers can use mobile applications to quickly access their preferred retail stores,
offering one of the fastest shopping experiences to date. There’s no need to travel to a store while
mobile apps & websites are generally much quicker desktop sites, saving the customer time & effort
that is invaluable to the modern consumer. There are few things more convenient than having access
to online shopping the tip of fingers.
 Usability: Mobile applications typically offer a better user experience for customers. They’re
optimized to offer a fast & streamlined shopping experience that is easy to navigate & only requires
a few clicks, making sales & leads easier to achieve as the consumer has a much more enjoyable
experience compared to other methods.
 Marketing: M-commerce platforms offer a new marketing channel that should be taken advantage
of. For instance, with a mobile application you have a direct connection to end users, giving an
invaluable marketing channel where you can sell products directly to the consumer via their mobile
device. From push notifications with the latest deals to creating a newsfeed with information above
the latest products & prices, there are various tailor-made marketing functions available on m-
commerce platforms that allow you to better target customers.
 Lower Costs & Higher Productivity: Using a mobile app to connect to customers quickly can save
money on marketing campaigns with less impressive results. Better still, social media integration can
further reduce social media marketing costs, utilizing customers to help spread the brand. Moreover,
the costs of developing & maintaining an application are typically much lower compared to other e-
commerce platforms, saving more money & freeing up resources. For example, an app often costs as
little as 20% of it’s development price to operate.
 Attracting New Customers: The great thing about ecommerce is that you can always target new
customers. Anyone that comes across the website may be converted into a sale, & this is no different
with m-commerce platforms.

Q-Objective of file organization

 It contains an optimal selection of records, i.e., records can be selected as fast as possible.
 To perform insert, delete or update transaction on the records should be quick & easy.
 The duplicate records cannot be induced as a result of insert, update or delete.
 For the minimal cost of storage, records should be stored efficiently.
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Q-Information Management Challenges/Challenges of Managing IT/data & information management

issues

1- Lack of Unified Best Practices: The lack of unified practices is among the top information management
challenges organizations face. If there is no enterprise-wide information management strategy,
individuals will often apply what they regard as correct, resulting in information that is poorly managed &
making locating & collaborating on it nearly hard.

2- Digitizing Information: Any company must undergo digital transformation & it is now imperative to
incorporate digital technologies into all divisions in order to radically alter how they do business. Apart
from having the right information management plan, organization-wide strategy, & change management
vision, having the right tool that can help organizations digitize their data & reach high levels of ROI is the
most critical consideration for the success of transitioning to digital.

3- Automating Processes: The role of information management is to deliver the correct information to the
right audience at the right time & place in order for them to respond fast & make educated business
decisions. That is only possible if operating procedures are seamless & efficient. Automation is the
ultimate technique to ensure that processes run smoothly. When procedures are automated, company
can complete activities more quickly, respond to client demands more effectively, & boost productivity.

4- Securing Information: We all have sensitive information that only authorized individuals should have
access to, & the corporate world is no exception. To reduce data breaches & retain a good reputation,
sensitive information such as customer information, employee information, & financial reports should be
safeguarded & only authorized persons should have access to them.

05- Regulatory Compliance: Most businesses operate in a regulated industry, & noncompliance with such
rules & regulations can cost them money in the form of fines & penalties.

Q-What are the principal components of telecommunications networks & key networking
technologies?

A simple network consists of two or more connected computers. Basic network components include
computers, network interfaces, a connection medium, network operating system software, & either a hub
or a switch.

The networking infrastructure for a large company includes the traditional telephone system, mobile
cellular communication, wireless local area networks, videoconferencing systems, a corporate Web site,
intranets, extranets, & an array of local & wide area networks, including the Internet.

Contemporary networks have been shaped by the rise of client/server computing, the use of packet
switching, & the adoption of Transmission Control Protocol/Internet Protocol (TCP/IP) as a universal
communications standard for linking disparate networks & computers, including the Internet.

Protocols provide a common set of rules that enable communication among diverse components in a
telecommunications network.
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Q-What Does IT Infrastructure Mean?

IT infrastructure refers to the composite hardware, software, network resources & services required for
the existence, operation & management of an enterprise IT environment.

IT infrastructure allows an organization to deliver IT solutions & services to its employees, partners and/or
customers & is usually internal to an organization & deployed within owned facilities.

Typically, a standard IT infrastructure consists of the following components:

Hardware: This is the “physical” part of an IT infrastructure, & comprises all the elements necessary to
support the basic functioning of the machines & devices constituting the infrastructure itself.

Servers, computers, storage & data centers, switches, hubs & routers, as well as all other equipment such
as the power, cooling, cabling & dedicated rooms.

Software: It refers to all the applications used by the enterprise both for internal purposes & to provide
its services to customers. Software includes web servers, Enterprise resource planning (ERP), customer
relationship management (CRM), productivity applications & the operating system (OS).

The OS is the most important software component & is responsible for managing the hardware itself &
connect the physical resources to the network infrastructure.

Network: Although is not strictly necessary for an IT infrastructure to function, the network is essential to
establish internal & external communication of all elements & devices.

The network part includes all the hardware & software elements necessary to ensure network
enablement, internet connectivity, firewall & security. It ensures that personnel get access to stored &
transferred data only from strictly controlled access points to reduce the risk of data theft or damage.

Meatware: Since they contribute to constituting the enterprise environment & guarantee its functions,
associated personnel & processes such as ITOps or DevOps are also part of an IT infrastructure.

Human users, such as network administrators (NA), developers, designers & end users with access to any
IT appliance or service are also part of an IT infrastructure, specifically with the advent of user-centric IT
service development.
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Q-What are the current trends in computer hardware & software platforms? Described the involving
mobile platform, grid computing & cloud computing.

Current trends in hardware & software include the increasing use of reduced instruction-set computing,
movement to the UNIX operating system, the development of large software libraries, microprocessor-
based smart terminals that allow remote validation of data, speech synthesis & recognition, application
generators, now in fourth-generation languages, computer-aided software engineering, object-oriented
technologies, & artificial intelligence.

The computer industry & its products continue to undergo dynamic change. Software development
continues to lag behind hardware, & its high cost is offsetting the savings provided by hardware.

The future of hardware is quite shaky because of the troubles between software & hardware computer
engineers & now that software could not keep up with hardware, hardware may be declining as the
software will take over.

For example, we always see the upgrade of software & and hardware still the same. The more software
upgrade becomes easier to use & maintained.

Mobile Platform: A mobile platform is an operating system that controls a mobile device or information
appliance similar in principle to an operating system such as Windows, Mac OS, or Linux that controls a
desktop computer or laptop. However, they are currently somewhat simpler, & deal more with the
wireless versions of broadband & local connectivity, mobile multimedia formats, & different input
methods.

Examples of devices running a mobile operating system are smartphones, personal digital assistants
(PDAs), tablet computers & information appliances, or what are sometimes referred to as smart devices,
which may also include embedded systems, or other mobile devices & wireless devices.

More & more business computing is moving from PCs & desktop machines to mobile devices like cell
phones & smartphones. Data transmissions, Web surfing, e-mail & instant messaging, digital content
displays, & data exchanges with internal corporate systems are all available through a mobile digital
platform. Netbooks, small low-cost lightweight subnotebooks that are optimized for wireless
communication & Internet access, are included.

Grid computing: It involves connecting geographically remote computers into a single network capable of
working in parallel on business problems that require short-term access to large computational capacity.
Meaning rather than purchase huge mainframes or super computers, firms can chain together thousands
of smaller desktop clients into a single computing grid.

Most computers in the world are being idle & at night they are sleeping. What if combine all the idle time
of hundreds or thousands of computers into a continuous, connected computing capacity to capture,
process, manage, store, & retrieve data? The firm does not need to purchase super computers to realize
this capability & capacity. Just have to turn on grid computing.

Cloud computing: This is a model of computing where firms & individuals obtain computing power &
software applications over the Internet, rather than purchasing their own hardware & software. Data are
stored on powerful servers in massive data centers, & can be accessed by anyone with an Internet
connection & standard Web browser.
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Q-Types of file organization:

File organization contains various methods. These particular methods have pros & cons on the basis of
access or selection. In the file organization, the programmer decides the best-suited file organization
method according to his requirement.

 Sequential file organization: This method is the easiest method for file organization. In this
method, files are stored sequentially. This method can be implemented in two ways 01. Pile File
Method 2. Sorted File Method:
 Heap file organization: It is the simplest & most basic type of organization. It works with data
blocks. In heap file organization, the records are inserted at the file's end. When the records are
inserted, it doesn't require the sorting & ordering of records. In the file, every record has a unique
id, & every page in a file is of the same size
 Hash file organization: Hash File Organization uses the computation of hash function on some
fields of the records. The hash function's output determines the location of disk block where the
records are to be placed. When a record has to be received using the hash key columns, then the
address is generated, & the whole record is retrieved using that address.
 B+ file organization: B+ tree file organization is the advanced method of an indexed sequential
access method. It uses a tree-like structure to store records in File. It uses the same concept of
key-index where the primary key is used to sort the records. For each primary key, the value of
the index is generated & mapped with the record.
 Indexed sequential access method (ISAM): ISAM method is an advanced sequential file
organization. In this method, records are stored in the file using the primary key. An index value
is generated for each primary key & mapped with the record.
 Cluster file organization: When the two or more records are stored in the same file, it is known as
clusters. These files will have two or more tables in the same data block, & key attributes which
are used to map these tables together are stored only once. This method reduces the cost of
searching for various records in different files.
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Q-What are the components of an organizational framework for security & control?

 General controls: govern the design, security, & use of computer programs & the security of data
files in general throughout the organization's information tech infrastructure. Apply to all
computerized apps & consist of a combo of hardware, software, & manual procedures that create
an overall control environment.
 Application controls: specific controls unique to each computerized application, such as payroll or
order processing. Include both automated & manual procedures that ensure that only authorized
data are completely & accurately processed by that app.
 Software controls: monitor the use of system software & prevent unauthorized access & use of
software programs, system software, & computer programs
 Hardware controls: ensure that computer hardware is physically secure & check for equipment
malfunction. Organizations that are critically dependent on their computers also must make
provisions for backup or continued operation to maintain constant service.
 Computer operations controls: oversee the work of the computer department to ensure that
programmed procedures are consistently & correctly applied to the storage & processing of data.
They include controls over the setup of computer processing jobs & backup & recovery
procedures for processing that ends abnormally.
 Data security controls: Ensure that valuable business data files maintained internally or by an
external hosting service are not subject to unauthorized access, change, or destruction while they
are in use or in storage
 Implementation controls: audit the systems development process at various points to ensure that
the process is properly controlled & managed
 Administrative controls: formalize standards, rules, procedures, & control disciplines to ensure
that the organization's general application controls are properly executed & enforced.
 Risk assessment: determines the level of risk to the firm if a specific activity or process is not
properly controlled. Helps determine which assets require protection & the extent to which these
assets are vulnerable. Helps determine the most cost-effective set of controls for protecting
assets.
 Security policy: consists of statements ranking info risks, identifying acceptable security goals, &
identifying the mechanisms for achieving these goals.
 Information systems audit: examines the firms overall security environment as well as controls
governing individual information systems. They should trace the flow of sample transactions
through the system & perform tests, using, if appropriate, automated audit software. May also
examine data quality
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Q-What are the most important tools & technologies for safeguarding information resources?

Businesses have an array of technologies for protecting their information resources. They include tools
for managing user identities, preventing unauthorized access to systems & data, ensuring system
availability, & ensuring software quality.

1. Identity Management & Authentication: Midsize & large companies have complex IT infrastructures &
many systems, each with its own set of users. Identity management software automates the process of
keeping track of all these users & their system privileges, assigning each user a unique digital identity for
accessing each system. It also includes tools for authenticating users, protecting user identities, & control-
ling access to system resources.

2. Firewalls, Intrusion Detection Systems, & Anti-malware Software: Without protection against
malware & intruders, connecting to the Internet would be very dangerous. Firewalls, intrusion detection
systems, & antimalware software have become essential business tools.

3. Securing Wireless Networks: The initial security standard developed for Wi-Fi, called Wired Equivalent
Privacy (WEP), is not very effective because its encryption keys are relatively easy to crack. WEP provides
some margin of security, however, if users remember to enable it. Corporations can further improve Wi-
Fi security by using it in conjunction with virtual private network (VPN) technology when accessing internal
corporate data.

6. Ensuring System Availability: As companies increasingly rely on digital networks for revenue & opera-
tions, they need to take additional steps to ensure that their systems & applications are always available.
Firms such as those in the airline & financial services industries with critical applications requiring online
transaction processing have traditionally used fault-tolerant computer systems for many years to ensure
100 percent availability. In online transaction processing, transactions entered online are immediately
processed by the computer. Multitudinous changes to databases, reporting, & requests for information
occur each instant.

7. Security Issues for Cloud Computing & the Mobile Digital Platform: Although cloud computing & the
emerging mobile digital platform have the potential to deliver powerful benefits, they pose new
challenges to system security & reliability. We now describe some of these challenges & how they should
be addressed.

8. Ensuring Software Quality: In addition to implementing effective security & controls, organizations can
improve system quality & reliability by employing software metrics & rigorous software testing. Software
metrics are objective assessments of the system in the form of quantified measurements. Ongoing use of
metrics allows the information systems department & end users to measure the performance of the
system jointly & identify problems as they occur. Examples of software metrics include the number of
transactions that can be processed in a specified unit of time, online response time, the number of payroll
checks printed per hour, & the number of known bugs per hundred lines of program code. For metrics to
be successful, they must be carefully designed, formal, objective, & used consistently
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Q-Here are some more major reasons to understand why cyber security is important for
companies:
Rise of Cyber Crimes: Be it a large scale or a small scale firm, hackers & cyber criminals spare no one.
Rather, they lookout for opportunities to exploit data & get money out of these firms. Over the past year,
the average cost of cybercrime for an organization has increased 23% more than last year—US$11.7
million, according to the report. Also, the average number of security breaches has risen significantly & it
is now $3.86 million, as per the report. With the introduction of new technologies, the chances of cyber
threats & risks are also rapidly increasing. Cyber criminals have advanced their attempts of deploying
cyber-attacks with the evolution of technology.

Growth of IoT Devices: With the mission to create smart cities with smart devices, our dependency to
connect everything to the internet has increased too. The introduction of IoT technology i.e. Internet of
Things, has not only simplified & speed up our tasks but has also created a pit of new vulnerabilities for
hackers to exploit. No matter how advanced security measures we take, cyber criminals will always stay
one step ahead to attempt cybercrimes. If these internet-connected devices are not managed properly
then they can provide a gateway to business to hackers or cyber criminals!

Bridge to Security Gap: Human resources & IT resources have always been one of the most important
aspects of any organization. Regardless of their dependency on each other, there has always been a
security gap between both aspects. In order to bridge this gap, it is important to provide individuals
working in an organization with the right cyber security awareness training. Training for employees is
necessary to bridge the gap of cyber security skills & to create a cyber-resilient working culture in the
organization.

Cost of Cyber Risks: Cyber-attacks today are not only multiplying in numbers but are also multiplying in
the cost of damage created. These cyber-attacks can prove to be extremely expensive for any organization
to endure if not taken proper security measures. With more business infrastructures connecting, it is
predicted, cybercrime to cost the world $10.5 trillion annually by 2025, says the report. Besides, it is not
just the financial damage that could cost but also the reputation of the firm along with loss of customer
trust in the business.

Security of Data: When it comes to data security, it can be clearly seen how organizations are getting
highly comfortable in keeping their information online. With the alarming number of data breaches &
information leaks making news headlines almost every day, it can be seen how vulnerable the data left is
online. Moreover, cyber-attack vectors such as ransomware, phishing, cyber scams, risk of removable
media, etc. leave no room for data exploitation & publicizing of any vulnerable data. Implementation of
the right cyber security solutions is a must to avoid any future cyber risks related to the sensitive data of
an organization.
 15

Q-Types of Computer Networks

 Personal Area Network (PAN) Local Area Network (LAN)

 Wide Area Network (WAN) Wireless Local Area Network (WLAN)
 Campus Area Network (CAN) Metropolitan Area Network (MAN)
 Storage Area Network (SAN) System-Area Network (SAN)
 Enterprise Private Network (EPN) Virtual Private Network (VPN)

1. Personal Area Network (PAN): PAN is the most basic type of computer network. This network is
restrained to a single person, that is, communication between the computer devices is centered only to
an individual’s workspace. PAN offers a network range of 10 meters from a person to the device providing
communication.

Examples of PAN are USB, computer, phone, tablet, printer, PDA, etc.

2. Local Area Network (LAN): LAN is the most frequently used network. A LAN is a computer network that
connects computers together through a common communication path, contained within a limited area,
that is, locally. A LAN encompasses two or more computers connected over a server. The two important
technologies involved in this network are Ethernet & Wi-fi.

Examples of LAN are networking in a home, school, library, laboratory, college, office, etc

3. Wide Area Network (WAN): WAN is a type of computer network that connects computers over a large
geographical distance through a shared communication path. It is not restrained to a single location but
extends over many locations. WAN can also be defined as a group of local area networks that
communicate with each other.

The most common example of WAN is the Internet

4. Wireless Local Area Network (WLAN): WLAN is a type of computer network that acts as a local area
network but makes use of wireless network technology like Wi-Fi. This network doesn’t allow devices to
communicate over physical cables like in LAN but allows devices to communicate wirelessly.

The most common example of WLAN is Wi-Fi.

5. Campus Area Network (CAN): CAN is bigger than a LAN but smaller than a MAN. This is a type of
computer network which is usually used in places like a school or college. This network covers a limited
geographical area that is, it spreads across several buildings within the campus.

Examples of CAN are networks that cover schools, colleges, buildings, etc.
 16

Q-What Are the Steps in Database Design?

A working database is crucial for internal business operations. & one crucial part of that database is its
design. Not sure where to start? No problem. Here are five database design steps to help.

Determine the purpose of the database: The very first thing must do is decide the purpose of database.
Need to determine what it will be used for, how to use it, who will use it, etc. This will help to develop a
mission statement & prepare for the remaining steps.

Find & organize the information: After figured out the purpose of database, need to gather the data that
needs to be stored there. After gather the necessary information, its need to organize it. It’s usually easiest
to organize the information by breaking each piece into its smallest useful parts.

Create tables for the information: Once the information is organized, need to divide up the information
into tables. Separate the data into major entities or subjects. Then, each subject will become a table. Label
each table with the subject within that table.

Establish relationships between the tables: Look at each table & decide how the data in one table is related
to the data in other tables. Add fields to tables or create new tables to clarify the relationships, as
necessary.

Refine design: Analyze design for errors. Create the tables & add a few records of sample data. See if users
can get the results they want from the tables. Make adjustments to the design, as needed.

Apply the normalization rules: Apply the data normalization rules to see if the tables are structured
correctly. Make adjustments to the tables, as needed.

Q-What IS MIS

Management information systems (MIS) provide data to inform company decision making, reduce waste
& increase profits. MIS in company management provides a broad picture of company performance, acts
as a planning tool, emphasizes strengths & weaknesses, helps improve performance & illuminates levels
of organizational efficiency. All levels of management, departments & even customers can use the
information generated through various MIS data to inform decisions like buying, hiring, reorganizing,
pricing, marketing & budgeting.
 17

MIS application in business

MIS application in business falls into several different categories that provide information on all forms of
functioning within an organization. Executives & departments within an organization could obtain any of
the following forms of data:

 Business Intelligence System: In BI, all levels of management & executives can print data & graphs
showing information or trends relating to growth, costs, strategic control, efficiency, risk &
performance.

 Executive Information System: An EI system provides the same information as a BI system, but
with greater attention to detail & more confidential information, designed to help top-level
executives make choices that impact the entire organization.

 Marketing Information System: MI systems provide data about past marketing campaigns so that
marketing executives can determine what works, what does not work & what they need to change
in order to achieve the desired results.

 Transaction Processing System: TPS handles sales transactions & makes it possible for customers
to sort search results by size, color or price. This system can also track trends related to sales &
search results.

 Customer Relationship Management System: Keeping up with customers is key to overall

success, & CRMS helps companies know when & how to follow up with customers in order to
encourage an ongoing sales relationship with them.

 Sales Force Automation System: Gone are the days when sales teams must do everything
manually. SFA systems automate much of what must be done for orders & to obtain customer
information.

 Human Resource Management System: HRM systems track how much employees are paid, when
& how they are performing. Companies can use this information to help improve performance or
the bottom line.

 Knowledge Management System: Customers with questions want answers right away &
knowledge management systems allow them to access frequently asked questions or
troubleshoot on their own timetable.

 Financial Accounting System: Financial accounting systems help to track accounts receivable &
accounts payable, in order to best manage the cash flow of a company.

 Supply Chain Management System: SCM systems record & manage the supply of finances, goods
& data from the point of origin domestically or abroad, all the way to its destination in the hands
of a customer.
 18

Q-What are ERP modules? How do these modules help business growth?

ERP is ubiquitous in businesses of all sizes. The modular design of ERP provides data & supports the
processes that help employees manage their daily tasks. Each module is integrated into the system to
ensure a single source of accurate data in the organization.

These are some basic modules of ERP software:

 Finance & Accounting Human Capital Management

 Procurement Manufacturing
 Order Management Inventory Management
 Warehouse Management Supply Chain Management
 Customer Relationship Management Ecommerce

1. Finance & Accounting: This module allows manufacturers to understand the current financial state &
future outlook of the organization. The major features in this module include general ledger, accounts
payable, accounts receivable, & taxation.

The Finance & Accounting module in ERP automates billing tasks, account reconciliation, vendor
payments, & more. Financial planning & analysis data help to prepare key reports such as Profit & Loss
statements.

2. Human Capital Management: This module promotes an approach for managing, recruiting, &
developing human resources (employees). The Human Capital Management software module is the
repository for employee data. It helps Human Resource departments with the onboarding process &
ensures education about the organization is shared with all employees.

From payroll to taxes, time-off requests, agreements, etc., are all available in ERP. Functions of the Human
Capital Management module include talent management, workforce management, compliance
management, & maintenance of employee data.

3. Procurement: Also known as purchasing, this module helps an organization manage & safeguard goods
required to manufacture or sell products. The Procurement ERP software module helps automate, track,
& analyze quotes. Once a quote is accepted, this module helps the purchasing department prepare & send
a purchase order.

4. Manufacturing: The first version of ERP was designed for manufacturers. MRP or Material Requirement
Planning was the earliest version of ERP that helped businesses estimate quantities of raw materials to
schedule on-time deliveries.

Modern ERP for manufacturers offers functionality such as Material Requirement Planning (MRP),
Advanced Planning & Scheduling (APS), & Manufacturing Execution System (MES).

5. Order Management: Order Management provides a single platform to manage orders from all sales
channels, from receipt to delivery. It tracks their status as they are shipped to customers. This ensures on-
time delivery of orders & that no orders are lost.
 19

Order Management provides a single platform for increased efficiency, better customer experience, &
management of all sales channels. From tracking orders to managing people & data connected to the
orders, the Order Management module delivers visibility & service availability.

6. Inventory Management: Inventory Management allows manufacturers to gain real-time inventory

information & manage all aspects of the business on one platform. This includes finance, planning,
logistics, & operations.

The Inventory Management ERP module provides just-in-time (JIT) inventory, real-time goods receipts, &
inventory levels, valuation of inbound & outbound inventory, ABC item analysis, inventory audits,
accurate forecasting, direct drop shipment, & more.

7. Warehouse Management: Warehouse Management software manages high-volume warehouse

operations & guides employees throughout the operation, from put away to picking, packing, & shipping.
It is a crucial module for manufacturing organizations.

Warehouse Management reduces cycle times & overhead costs while increasing inventory turns. It lets
you automatically coordinate & record the movement of inventory. When this module is integrated into
an ERP solution, employees can easily locate the right products to ensure timely delivery to customers.

8. Supply Chain Management: Supply Chain Management tracks every step in the supply chain process. It
ensures the availability of the right inventory, in the right place, & at the right time. This module also
manages man, materials, & refunded products or replacement orders.

9. Customer Relationship Management: Customer Relationship Management (CRM) helps manufacturers

manage the customer lifecycle, from initial contact to sales, production, & post-sale maintenance &
support services. You can find information about customers & prospects, their communication history, &
purchase history.

ERP CRM helps you create & manage service & warranty agreements efficiently & provide faster response
to service calls. It enables you to automate operations such as generating accounts receivables, sending
notifications, filling out purchase orders, & more.

10. E-commerce: An Ecommerce module integrated with ERP software provides a feature-rich
eCommerce platform for B2B & B2C manufacturers. It ensures a shared database of payment, order, &
inventory information.

The Ecommerce module ensures automation, real-time information, data consistency, & eliminates data
redundancy. It saves time & eliminates the possibility of manual data entry errors.
 20

Q-Challenges of ERP implementation in Bangladesh

ERP projects are very expensive & challenging. If an ERP project is not managed properly, it will take
longer than expected time, cost will be unexpectedly high & business will be in danger after
implementation. Here are some challenges of ERP implementation facing by Bangladeshi manufacturing
companies.

Proper ERP project planning & budgeting: Without proper planning, ERP project cost will be hundred times
more than the budget & project time line will be longer than expected time line since ERP project implies
big change & covers many business processes, people, cultures & technologies. To make a proper planning
& budgeting, a company must have to consider all business areas, people, required resources, current &
upcoming obstacles, available technologies, software vendors & consultants etc. A proper plan of those
can minimize the risk of failure. But most of the companies in Bangladesh fail to make a proper project
plan & budget.

ERP project ownership by organization: Maximum Bangladeshi companies depend on software vendor &
don’t take the ownership of projects & for that reason ERP failure rate is very high. But ERP success
depends on the implementation strategies that must be taken by a company. Without taking project
ownership, how a company will make strong strategies. Full project plan must have to be done by the
company instead of Depending On Software Company. If software vendors get the ownership, they will
take you as a gold mine of money & make money more than thousands of times of budget. Always
remember that software vendors never ensure success but you can by taking ownership of the project.

Management alignment with ERP project goal: Majority percentage of Bangladeshi companies’
management don’t know about ERP. Most of them think that ERP is a software. So, buy it & implement in
overnight. They are not aligned with project goal. But to success in ERP project implementation, all
management level people must have to be aligned with project goal. They must need to know about the
ERP, how it works, what can be achieved from it. They also need to contribute in ERP project. Because
they are the internal customers of ERP in the company. In this case company have to arrange training on
ERP to get alignment of management level people.

Organizational changes & setup for ERP preparation: ERP requires many changes in business processes,
people & technologies. Also, company needs a new setup for ERP preparation. But in Bangladesh we see
different scenarios. Companies buy ERP software & try to implement those without required changes &
setup & at the end ERP software becomes a burden to them. But before implementing successful ERP, a
company must need to perform all changes & setup on organizational structure, business processes &
people. After ERP implementation, it is very costly & risky to change organizational structure & business
setup.

Actual & complete business requirements identification & integration with software: Most of the
Bangladeshi companies fail to get expected results from ERP implementation as their software don’t
satisfy the business requirements. But Without integration of Business processes with ERP software, a
company can’t get the expected result of ERP implementation. To get success in ERP implementation, a
company must need to identify the actual business requirements & ensure that all those requirements
are satisfied by ERP software.
 21

Business friendly software selection: ERP software must be business friendly with company’s business
processes. Otherwise, it needs to be made huge changes in software which required lots of customizations
(change on program) & modifications on configuration (change software set up). For that company needs
a huge money to make it. Therefore; a company should select a business compatible software. But in
Bangladesh, most of the companies fail to select business friendly software.

Maintenance Cost: It has maintenance costs attached, which takes a toll on overall expenses & eventually
pulverize plans. A successful ERP implementation often needs periodic maintenance, including system
management, infrastructure, software, & human resources.

Lack of skillful people for ERP: ERP requires lot of business analysis. To analyze business processes &
integrate it with software, lots of analysis, thinking & brainstorming are required. For that it’s required
smart people who can analyze any business process & integrate with software to ensure success. But in
Bangladesh, those types of smart people are not available in all companies. Few companies develop those
types of people.

People Barrier: ERP requires lots of changes in business processes & technologies. Organizational people
must need to adopt those changes. Otherwise, ERP implementation will not be succeeded. But in
Bangladesh, most of the companies’ people don’t want to accept changes in processes & technologies.
Most of them are traditional mentalities & naysayers to changes. They have lots of excuses & complains
on new things & create obstacles on improvements. If organizational people fail to absorb new changes,
a company never be able to get success in ERP implementation. In this case, companies need to fire people
or change their responsibilities & hire new smart people who can take changes.

External software consultants’ dependency: Maximum Bangladeshi companies depend on software

consultants on ERP implementation. They think that software consultants can ensure success which is
wrong. External consultants are very expensive & therefore they are hired for short time period (2-3
months). So, it’s not possible for them to understand all business scenarios, company’s cultures & people
behaviors within that time. Therefore, most to the time they fail to integrate business process. At the end,
ERP does not provide expected results.

Conclusion: To overcome all challenges & obstacles, each & every company should take the ownership of
the project. It should a plan to control the software consultants instead of controlling by them. Companies
need to choose ERP implementation strategy & business friendly software. Also need to invest on internal
people to develop them & train management level people so that they can contribute on ERP
implementation & can generate their requirements to get from ERP software.
 22

Q-What methods can be used for selecting & evaluating information systems projects & aligning them
with the firm’s business goals?

Companies typically are presented with many different projects for solving prob-lems & improving
performance. There are far more ideas for systems projects than there are resources. Firms will need to
select the projects that promise the greatest benefit to the business. Obviously, the firm’s overall business
strategy should drive project selection.

1. Management Structure for Information Systems Projects: At the apex of this structure is the corporate
strategic planning group & the in-formation systems steering committee. The corporate strategic planning
group is responsible for developing the firm’s strategic plan, which may require the devel­opment of new
systems. Often, this group will have developed objective measures of firm performance (called key
performance indicators, introduced in Chapter 2 & Chapter 12) & choose to support IT projects that can
make a substantial improvement in one or several key performance indicators. These performance
indicators are reviewed & discussed by the firm’s board of directors.

The information systems steering committee is the senior management group with responsibility for
systems development & operation. It is com-posed of department heads from both end-user &
information systems areas. The steering committee reviews & approves plans for systems in all divi-sions,
seeks to coordinate & integrate systems, & occasionally becomes in-volved in selecting specific
information systems projects. This group also has a keen awareness of the key performance indicators
decided on by higher-level managers & the board of directors.

The project team is supervised by a project management group composed of information systems
managers & end-user managers responsible for overseeing specific information systems projects. The
project team is directly responsible for an individual systems project. It consists of systems analysts,
specialists from the relevant end-user business areas, application programmers, & perhaps database
specialists. The mix of skills & the size of the project team depend on the specific nature of the system
solution.
 23

2. Linking Systems Projects to the Business Plan: In order to identify the information systems projects that
will deliver the most business value, organizations need to develop an information systems plan that
supports their overall business plan & in which strategic systems are incorporated into top-level planning.
The plan serves as a road map indicating the direction of systems development (the purpose of the plan),
the rationale, the state of current systems, new developments to consider, the management strategy, the
implementation plan, & the budget

The plan contains a statement of corporate goals & specifies how informa-tion technology will support
the attainment of those goals. The report shows how general goals will be achieved by specific systems
projects. It identifies specific target dates & milestones that can be used later to evaluate the plan’s
progress in terms of how many objectives were actually attained in the time frame specified in the plan.
The plan indicates the key management decisions, technology, & required organizational change.

3. Portfolio Analysis: Once strategic analyses have determined the overall direction of systems
de-velopment, portfolio analysis can be used to evaluate alternative systems projects. Portfolio analysis
inventories all of the organization’s information sys­tems projects & assets, including infrastructure,
outsourcing contracts, & licenses. This portfolio of information systems investments can be described as
having a certain profile of risk & benefit to the firm similar to a financial portfolio.

Each information systems project carries its own set of risks & benefits. Firms would try to improve the
return on their portfolios of IT assets by balanc-ing the risk & return from their systems investments.
Although there is no ideal profile for all firms, information-intensive industries (e.g., finance) should have
a few high-risk, high-benefit projects to ensure that they stay current with technology. Firms in non-
information-intensive industries should focus on high-benefit, low-risk projects.

4. Scoring Models: A scoring model is useful for selecting projects where many criteria must be considered.
It assigns weights to various features of a system & then calcu-lates the weighted totals. Using Table 14.2,
the firm must decide among two alternative enterprise resource planning (ERP) systems. The first column
lists the criteria that decision makers will use to evaluate the systems. These cri-teria are usually the result
of lengthy discussions among the decision-making group. Often the most important outcome of a scoring
model is not the score but agreement on the criteria used to judge a system.
 24

Q-What Is a Blockchain?

A blockchain is a distributed database or ledger that is shared among the nodes of a computer network.
As a database, a blockchain stores information electronically in digital format. Blockchains are best known
for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure & decentralized
record of transactions. The innovation with a blockchain is that it guarantees the fidelity & security of a
record of data & generates trust without the need for a trusted third party.

There are 4 types of blockchain:

1. Public Blockchain: These blockchains are completely open to following the idea of decentralization.
They don’t have any restrictions, anyone having a computer & internet can participate in the network.

 As the name is public this blockchain is open to the public, which means it is not owned by anyone.
 Anyone having internet & computer with good hardware can participate in this public blockchain.

Advantages:

Trustable: There are algorithms to detect no fraud. Participants need not worry about the other nodes in
the network

Secure: This blockchain is large in size as it is open to the public. In a large size, there is greater distribution
of records

Anonymous Nature: It is a secure platform to make transaction properly at the same time, you are not
required to reveal name & identity in order to participate.

Decentralized: There is no single platform that maintains the network, instead every user has a copy of
the ledger.

Disadvantages:

Processing: The rate of the transaction process is very slow, due to its large size. Verification of each node
is a very time-consuming process.

Energy Consumption: Proof of work is high energy-consuming. It requires good computer hardware to
participate in the network

Acceptance: No central authority is there so governments are facing the issue to implement the
technology faster.

Examples of public blockchain are Bitcoin, Ethereum.

2. Private Blockchain: These blockchains are not as decentralized as the public blockchain only selected
nodes can participate in the process, making it more secure than the others. These are not as open as a
public blockchain & are operated in a closed network.

Advantages:

Speed: The rate of the transaction is high, due to its small size. Verification of each node is less time-
consuming.
 25

Scalability: We can modify the scalability. The size of the network can be decided manually.

Privacy: It has increased the level of privacy for confidentiality reasons as the businesses required.

Balanced: It is more balanced as only some user has the access to the transaction which improves the
performance of the network.

Disadvantages:

Security- The number of nodes in this type is limited so chances of manipulation are there. These
blockchains are more vulnerable.

Centralized- Trust building is one of the main disadvantages due to its central nature. Organizations can
use this for malpractices.

Count- Since there are few nodes if nodes go offline the entire system of blockchain can be endangered.

example of private blockchains is Hyperledger, Corda.

3. Hybrid Blockchain

It is the mixed content of the private & public blockchain, where some part is controlled by some
organization & other makes are made visible as a public blockchain.

 It is a combination of both public & private blockchain.

 Permission-based & permissionless systems are used.
 Even a primary entity owns a hybrid blockchain it cannot alter the transaction

Advantages:

Ecosystem: Most advantageous thing about this blockchain is its hybrid nature. It cannot be hacked as
51% of users don’t have access to the network

Cost: Transactions are cheap as only a few nodes verify the transaction. All the nodes don’t carry the
verification hence less computational cost.

Architecture: It is highly customizable & still maintains integrity, security, & transparency.

Operations: It can choose the participants in the blockchain & decide which transaction can be made
public.

Disadvantages:

Efficiency: Not everyone is in the position to implement a hybrid Blockchain. The organization also faces
some difficulty in terms of efficiency in maintenance.

Transparency: There is a possibility that someone can hide information from the user. If someone wants
to get access through a hybrid blockchain it depends on the organization whether they will give or not.

Ecosystem: Due to its closed ecosystem this blockchain lacks the incentives for network participation.

Examples of Hybrid Blockchain are Ripple network & XRP token.

 26

4. Consortium Blockchain

It is a creative approach that solves the needs of the organization. This blockchain validates the transaction
& also initiates or receives transactions.

 Also known as Federated Blockchain.

 Some part is public & some part is private.
 In this type, more than one organization manages the blockchain.

Advantages:

Speed: A limited number of users make verification fast. The high speed makes this more usable for
organizations.

Authority: Multiple organizations can take part & make it decentralized at every level. Decentralized
authority, makes it more secure.

Privacy: The information of the checked blocks is unknown to the public view. But any member belonging
to the blockchain can access it.

Flexible: There is much divergence in the flexibility of the blockchain. Since it is not a very large decision
can be taken faster.

Disadvantages:

Approval: All the members approve the protocol making it less flexible. Since one or more organizations
are involved there can be differences in the vision of interest.

Transparency: It can be hacked if the organization becomes corrupt. Organizations may hide information
from the users.

Vulnerability: If few nodes are getting compromised there is a greater chance of vulnerability in this
blockchain
 27

Q-The Fourth Industrial Revolution & the Impact on Banking & Finance (Challenges & Opportunities)

As with all industrial revolutions, the fourth industrial revolution is set to change everything: from the way
we live & work to the way we communicate & relate to each other.

The first mechanized production with water & steam. The second created mass production with
electricity. The third is automated production with IT & electronics, & the current, fourth one is set to
increase production productivity with smart technology.

The fourth industrial revolution is becoming known as “the transition from a time when people worked
with computers to a time when computers work without humans” & is digitally transforming industries
through the power of digital automation.

What impact is the fourth industrial revolution having on the finance sector?

“The process of digitalization in the banking sector is, besides the great advantages for banks & their
clients, also bringing with it certain challenges that banks need to take care of.” – ResearchGate

The finance sector is divided when it comes to the fourth industrial revolution. Some say that
“technological innovations will be at the heart & blood of the banking industry for many years to come”
(Brett King) & others fear that “the big banks that are using big tech will use their lobbying muscle to avoid
regulation & play by different rules.” (The Guardian).

Major challenges the fourth industrial revolution is bringing to banking & finance

Security risks & cyber-crime: “Cyber risk refers to the threat of financial losses, disruption and/or
reputational damage from a malicious breach of an entity’s information systems.” – RBA

If concerns over cybercrime is a red-hot topic in most (if not every) industry, it’s a white-hot burning one
in banking & finance.

Cyber threats are getting more & more sophisticated, with terrifying tales of ransomware, phishing, and
information leaks & data breaches in the news every day. And, with the fourth industrial revolution
bringing an increased use of technology into the banking & finance industry, the risk of companies
suffering from a cyber-attack is growing.

Building trust & rapport: Trust in banking is imperative: 95% of customers say that trusting a company
increases their loyalty to it. But trust is hard-earned. It takes time, effort & a human touch to build rapport,
earn trust & build strong, long-lasting relationships.

But, with the fourth industrial revolution & the move towards a world where everything is digitalized &
nothing will involve human contact, building that trust will start to become more & more difficult.
Computers & connected technology can’t offer customers much emotion, creativity, imagination,
empathy or intuition.

Increased competition: “Banks are at risk of loss which can be almost a third of their profit. The next, even
more, rigorous phase of digital transformation will further reduce the banks’ profit in the upcoming years,
which will be a consequence of even greater competition & the continuation of the decline in banks’
margins.” – ResearchGate
 28

Q-Opportunities the fourth industrial revolution is bringing to banking & finance

Despite the major challenges the fourth industrial revolution is bringing to banking & finance, it isn’t all
doom & gloom. The opportunities it presents are equally as game-changing.

Enhanced customer experiences: Technology is making it possible for companies to enhance their
customers experience tenfold. It’s making it possible for them to offer intuitive, personal & connected
experiences. With big data, companies have more access to in-depth insights into how their customers
behave, what they like, what they don’t like, & what they want than ever before. & the huge advances in
AI have given them the ability to tailor their customer’s experiences, reach them at crucial touchpoints &
change their products & services accordingly, without much effort.

It’s worth noting that when choosing a banking or finance company, 70% of customers see connected
processes as a key requirement & 59% see tailored & contextualised engagement based on previous
interactions as key.

Increased security & efficiency: : Digital money (or cryptocurrency) is an inevitable consequence of the
fourth industrial revolution, & one of the biggest trends to come out of it is Blockchain.

“Blockchain is a secure, decentralized, & transparent way of recording & sharing data, with no need to
rely on third-party intermediaries.” – Salesforce

Added flexibility: Thanks to the fourth industrial revolution, organisations across all industries are under
more & more pressure to respond to customers & situations instantly, 24/7. As the banking sector is
constantly evolving, this means that banks & financial organisations need to be as flexible & as agile as
possible. A tricky concept to pull off if you’re a large, cumbersome financial corporation.

To conclude: Like with its predecessors, the fourth industrial revolution is improving industry practices &
processes with Research & Development & innovation. The banking & finance sector especially is thriving
with new digital innovations & technologies which are improving customer experiences, increasing
security & allowing them to become more agile. But, if organizations within the sector want to stay afloat,
they must pay attention to & deal with security threats, increased competition & maintaining their
customers trust & loyalty.
 29

Q-Positive Effects of Computers in Business

From the early mainframe servers to iPads, computers have become workplace mainstays. They play a
role in how businesses communicate internally & externally, manage their employees, run their
production lines & track their customers. Businesses have been able to justify their computer investments
because of the positive effects on profitability, strategic & operational flexibility, employee productivity
& organizational learning.

Profitability: Computers increase business profitability. By computerizing data processing, invoicing,

payroll & various other processes, businesses are able to reduce their cost structure. Computers are at
the core of new distribution channels such as online stores, which have led to the creation of new market
opportunities worldwide. Sales growth & reduced costs generally means higher profits, which is why
businesses keep investing in computers. Information technology investment per employee has risen even
though computers have become less expensive, according to analysis done by MIT principal scientist
Andrew McAfee.

Flexibility: Computers facilitate strategic & operational flexibility. Computers make businesses nimble.
Internet connectivity, high-speed data transmission & powerful databases have allowed senior
management to make strategic decisions to outsource significant portions of their operations worldwide.
Enterprise resource planning systems aggregate data from operational processes such as production &
payroll, allowing managers to make real-time decisions on resource allocations for personnel, marketing
& production. Computers have shortened the time-to-market for new products: Businesses can prototype
new concepts using software & hardware simulation tools, conduct online focus groups on possible
market appeal, make rapid product design adjustments & launch new products to keep pace with
competitor product offerings.

Productivity: Computers increase worker productivity. Employees are able to do more in less time. From
software spreadsheet calculations to high-speed data communications to databases for storing &
accessing vast amounts of data, computers allow employees to focus more on value-added tasks & less
on routine tasks. This also means a more interesting work experience for employees, a fact confirmed for
Canadian workers in a 2002 Human Resources & Skills Development Canada study. Employees who enjoy
their work experience tend to stay with their employers longer & work harder.

Learning: Computers enhance organizational learning. The most significant contributor in this respect has
been networking technologies that link together computers across geographical locations. Using
corporate blogs, virtual meetings & social media, employees worldwide can share data, collaborate on
projects & learn from each other in real time. There is no need to fly trainers from one part of the world
to another to train salespeople on a new product because the information can be posted online & viewed
24/7. This saves time & money, while enhancing employee development & corporate learning.
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Q. What is the impact of information systems on organizations?

Economic impact

From an economic point of view, there are three types of changes we can see.
 The relative cost of capital & the cost of information are changed by IT.
 It is viewed as a factor of production that can be substituted for traditional capital & labor
 It also affects the cost & quality of the information.

Organization & behavioral impacts

 IS flattens organizations

Now, most of the decision making done by lower levels. There is no need for many managers. Only
fewer managers can do this .having technological development, large organizations are reducing
their employees & number of business levels. The managers are received accurate information on
time. They are going faster than previously at making their decision. Management costs are
declining day by day. The percentage of revenues & hierarchy becomes more efficient.
 Understanding organizational resistance to change

Sometimes, Organizations are affected by organizational politics. Because, it can influence the key
resources like who does what to whom, where, when, why, how, etc. one can visualize the
organizational resistance. There are four factors that suggest innovating the organization.

 The nature of the IT innovation

 The structure of the organizations
 The culture of the organization
 Tasks impacted by the innovation

Moreover, organizational task management, structure, & people are influenced by technology. In
this model, you need to change the technology, structure, people, procedures, tasks, &
management. Organizational resistance is very hard to change. Because it is so powerful

 The internet & organizations

The internet increases some factors like the accessibility, storage, & distribution of information &
knowledge for organizations. The internet can greatly lower costs. Businesses are growing rapidly
because of access to internet technology. It is a key component of the business infrastructures.
Now, organizations enjoy lower costs, fewer employees, & better production & efficiency.
 31

Q-Network protocol:

A network protocol is an established set of rules that determine how data is transmitted between different
devices in the same network. Essentially, it allows connected devices to communicate with each other,
regardless of any differences in their internal processes, structure, or design. Network protocols are the reason
an individual can easily communicate with people all over the world, & thus play a vital role in modern digital
communications.

Q-How Network Protocols Work

Network protocols take large-scale processes & break them down into small, specific tasks or functions. This
occurs at every level of the network, & each function must cooperate at each level to complete the larger task
at hand. The term protocol suite refers to a set of smaller network protocols working in conjunction with each
other.

Q-Types of Wireless Communication Protocols in IOT

 Wi-Fi: Wi-Fi (Wireless Fidelity) is the most popular IOT communication protocol for wireless local area
networks (WLAN) that utilizes the IEEE 802.11 standard through 2.4 GHz UHF & 5 GHz ISM frequencies.
Wi-Fi provides Internet access to devices that are within the range of about 20 - 40 meters from the
source. It has a data rate up to 600 Mbps maximum, depending on the channel frequency used & the
number of antennas.
 Bluetooth: Bluetooth is a technology used for exchanging data wirelessly over short distances & is
preferred over vaouros IOT network protocols. It uses short-wavelength UHF radio waves of frequency
ranging from 2.4 to 2.485 GHz in the ISM band
 Cellular: The cellular network has been in use since the last 2 decades & comprises of GSM/GPRS/EDGE
(2G)/UMTS or HSPA(3G)/LTE(4G) communication protocols. This protocol is generally used for long-
distance communications. The data can be sent of large size & with high speeds compared to other
technologies.

Q-What Are the Types of Information Security Controls?

 Physical access controls. This includes restrictions on physical access such as security guards at
building entrances, locks, close circuit security cameras, & perimeter fences.

 Cyber access controls. These are cybersecurity controls & policies such as up-to-date firewalls,
password policies, & software applications that alert cybersecurity risks like ransomware attacks &
phishing.

 Procedural controls. This includes security awareness education, security framework compliance
training, & incident response plans & procedures put in place to enhance network security.

 Technical controls. Increasingly common are controls such as multi-factor user authentication at login,
& also granting internal access to IT systems on a need-to-know basis.

 Compliance controls. This means adherence to privacy laws & cybersecurity frameworks & standards
designed to minimize security risks. These typically require an information security risk assessment, &
impose information security requirements.
 32

Q-What is the principal risk factors in information systems projects, & how can they be managed?

1. Dimensions of Project Risk

Systems differ dramatically in their size, scope, level of complexity, & organizational & technical
components. The level of project risk is influenced by project size, project structure, & the level of
technical expertise of the information systems staff & project team.

Although the difficulty of the technology is one risk factor in information systems projects, the other
factors are primarily organizational, dealing with the complexity of information requirements, the scope
of the project, & how many parts of the organization will be affected by a new information system.

2. Change Management & the Concept of Implementation

The introduction or alteration of an information system has a powerful behavioral & organizational
impact. Changes in the way that information is defined, accessed, & used to manage the organization’s
resources often lead to new distributions of authority & power. This internal organizational change breeds
resistance & opposition & can lead to the demise of an otherwise good system.

A very large percentage of information systems projects stumble because the process of organizational
change surrounding system building was not properly addressed. Successful system building requires
careful change management

3. Controlling Risk Factors

Various project management, requirements gathering, & planning methodologies have been developed
for specific categories of implementation problems. Strategies have also been devised for ensuring that
users play appropriate roles throughout the implementation period & for managing the organizational
change process. Not all aspects of the implementation process can be easily controlled or planned.
However, anticipating potential implementation problems & applying appropriate corrective strategies
can increase the chances for system success.

The first step in managing project risk involves identifying the nature & level of risk confronting the
project. Implementers can then handle each project with the tools & risk management approaches geared
to its level of risk. Not all risks are identifiable in advance, but with skillful project management, most are.
Frequent communication & a culture of collaboration will help project teams adapt to unforeseen
problems that arise (Browning & Ramasesh, 2015; Laufer et al., 2015; McFarlan, 1981).

4. Designing for the Organization

Because the purpose of a new system is to improve the organization’s performance, information systems
projects must explicitly address the ways in which the organization will change when the new system is
installed, including the installation of mobile & web applications. In addition to procedural changes, trans-
formations in job functions, organizational structure, power relationships, & the work environment should
be carefully planned.

Areas, where users interface with the system, require special attention, with sensitivity to ergonomics
issues. Ergonomics refers to the interaction of people & machines in the work environment. It considers
the design of jobs, health issues, & the end-user interface of information systems
 33

5. Project Management Software Tools

Commercial software tools that automate many aspects of project management facilitate the project
management process. Project management software typically features capabilities for defining & ordering
tasks, assigning resources to tasks, establishing starting & ending dates to tasks, tracking progress at both
individual & team levels, & facilitating modifications to tasks & resources. Many automate the creation of
Gantt & PERT charts & provide communication, collaboration, & social tools.

Some of these tools are large sophisticated programs for managing very large projects, dispersed work
groups, & enterprise functions. These high-end tools can manage very large numbers of tasks & activities
& complex relationships. The most widely used project management tool today is Microsoft Project, but
there are also lower-cost tools for smaller projects & small businesses. Many project management
applications are now cloud-based to enable project team members to access project management tools
& their data wherever they are working. The Interactive Session on Technology describes some
capabilities of cloud-based Microsoft Project Online.

Q-What is meant by information system planning?

Information System Planning (ISP) is a structured approach developed by IBM to assist organizations in
establishing a plan to satisfy their short & long term information requirements.

Q-Data Warehouse VS Data Mining

 34

Q-What Is Financial Technology (Fintech)?

Financial technology (better known as Fintech) is used to describe new tech that seeks to improve &
automate the delivery & use of financial services. At its core, fintech is utilized to help companies, business
owners, & consumers better manage their financial operations, processes, & lives by utilizing specialized
software & algorithms that are used on computers and, increasingly, smartphones. Fintech, the word, is
a combination of "financial technology."

Example:

 Payments apps like PayPal, Bkash, Nagad, & CashApp make it easy to pay individuals or businesses
online & in an instant.
 Investment apps like Robinhood make it easy to buy & sell stocks, ETFs, & crypto from mobile
device, often with little or no commission

Q-Main Advantages & Disadvantages of ERP System

The advantages presented by the ERP are:

1. Optimization of business processes.

2. Accurate & timely access to reliable information.
3. The ability to share information between all components of the organization.
4. Reduction of time & costs of litigation.
5. To improve performance & save time, optimize the control & analysis of management decisions
there in the long term, reduced costs for the company.
6. Another obvious advantage is in terms of customer service, because the response time is reduced
attention to them.

Disadvantages of ERP are:

1. The installation of the ERP system is costly. ERP consultants are very expensive take approximately
60% of the budget.
2. The success depends on the skills & experience of the workforce, including education & how to
make the system work properly.
3. Resistance in sharing internal information between departments can reduce the efficiency of the
software.
4. The systems can be difficult to use.
5. Change of staff, companies can employ administrators who are not trained to manage the ERP
system of the employing company, proposing changes in business practices that are not
synchronized with the system.
 35

A database management system (DBMS) is a software or tool which can be used for managing and
maintaining the data within the database.

The major capabilities of DBMS are listed below −

 Data Storage Data Retrieval

 Data Update Security

 Data Independence

Explanation

Generally, a person has to work with a huge amount of information every day. In order to interact with
the large amount of data we need a system where we can store, manipulate, security, sharing the
information all over the world. It is a core reason the industries are maintaining database management
tools.

Powerful Relational DBMS

The relational DBMS is more powerful because of the reasons explained below −

 In the RDBMS model the data will be stored in the form of tabular format, whereas, table is
nothing but a collection of rows and columns.

 The RDBMS model will provide high level security by using authentication and authorization.

 RDBMS maintains accuracy and consistency of the data with the help of data integrity mechanism.

 RDBMS supports the data manipulations by using DML commands.

 RDBMS provides faster rate retrieving the data by using index mechanism.

Q-Why are information policy, data administration, and data quality assurance essential for managing
the firm’s data resources?

Setting up a database is only a start. In order to make sure that the data for business remain accurate,
reliable, and readily available to those who need them, business will need special policies and procedures
for data management.

1. Establishing an Information Policy

Every business, large and small, needs an information policy. Firm’s data are an important resource, and
firm don’t want people doing whatever they want with them. Firm need to have rules on how the data
are to be organized and maintained and who is allowed to view the data or change them.

An information policy specifies the organization’s rules for sharing, acquiring, standardizing, classifying,
and inventorying information. Information policy lays out specific procedures and accountabilities,
identifying which users and organizational units can share information, where information can be
distributed, and who is responsible for updating and maintaining the information. For example, a typical
information policy would specify that only selected members of the payroll and human resources
department would have the right to change and view sensitive employee data, such as an employee’s
 36

salary or social security number, and that these departments are responsible for making sure that such
employee data are accurate.

In a small business, the information policy would be established and implemented by the owners or
managers. In a large organization, manag-ing and planning for information as a corporate resource often
require a formal data administration function. Data administration is responsible for the specific policies
and procedures through which data can be managed as an orga-nizational resource. These responsibilities
include developing an information policy, planning for data, overseeing logical database design and data
dictionary development, and monitoring how information systems specialists and end- user groups use
data.

2. Ensuring Data Quality

A well-designed database and information policy will go a long way toward ensuring that the business has
the information it needs. However, additional steps must be taken to ensure that the data in
organizational databases are accurate and remain reliable.

What would happen if a customer’s telephone number or account balance were incorrect? What would
be the impact if the database had the wrong price for the product firm sold or sales system and inventory
system showed different prices for the same product? Data that are inaccurate, untimely, or inconsistent
with other sources of information lead to incorrect decisions, product recalls, and financial losses. Some
of these data quality problems are caused by redundant and inconsistent data produced by multiple
systems feeding a data warehouse. For example, the sales ordering system and the inventory
management system might both maintain data on the organization’s products. However, the sales
ordering system might use the term Item Number and the inventory system might call the same attribute
Product Number. The sales, inventory, or manufacturing systems of a clothing retailer might use different
codes to represent values for an attribute. One system might represent clothing size as “medium,”
whereas the other system might use the code “M” for the same purpose. During the design process for
the warehouse database, data describing entities, such as a customer, prod-uct, or order, should be
named and defined consistently for all business areas using the database.

If a database is properly designed and enterprise-wide data standards are established, duplicate or
inconsistent data elements should be minimal. Most data quality problems, however, such as misspelled
names, transposed numbers, or incorrect or missing codes, stem from errors during data input. The
incidence of such errors is rising as companies move their businesses to the web and allow customers and
suppliers to enter data into their websites that directly update internal systems.

Data quality problems are not just business problems. They also pose se-rious problems for individuals,
affecting their financial condition and even their jobs. For example, inaccurate or outdated data about
consumers’ credit histories maintained by credit bureaus can prevent creditworthy individu­als from
obtaining loans or lower their chances of finding or keeping a job. And as the Interactive Session on
Organization describes, incomplete or inaccurate databases also pose problems for criminal justice and
public safety.
 37

Q-Ways in which Technology is making the Banking Industry More Efficient

1. The World at Fingertips

A lot of people will be able to relate to this because in some way or the other, all of us are being
effected by technology. From ordering food or shopping for clothes, everything is only a tap away. You
also do not have the need to carry cash in hand, you can just make a digital payment from E-Wallet.
Similarly, through net banking, one is allowed to transfer money from one account to another, order for
cheque books, check the balance, make payments, create Fixed Deposits, and so on.
2. Less Errors and Better Data Protection
In the olden days when banking was completely dependent on human accuracy and skill, mistakes and
errors were more apparent. As human capabilities have a limit, they are prone to skip certain things or
make calculation errors. With the introduction of computers, the frequency of errors has reduced to
almost nil. Also, another important perspective to this, is that it can protect the data much more
efficiently. Today’s technology provides complete security of transactions and safety of data that there
are very rare occasions on which the data is misused.
3. Better Customer Experience
The ancient system of banking was extremely tiring and lengthy that resulted in poor customer
experiences. This was because one had to stand in long queues, file a lot of papers and be physically
present. The advent of net banking and mobile banking has reduced the time you spend for banking-
related tasks and has also ensured hassle-free customer service even from a remote location.
4. Business Intelligence to Drive Profitability
RBI has encouraged all the Indian Banks to adapt Business Intelligence (BI) to increase the overall
profitability in the industry. Business intelligence system provides data for historical, current and future
trends. This data aids the banks in a way that they are able to take accurate decisions and thereby can
bring an overall increase in the productivity, efficiency and profitability.
 38

Q- Challenges of Database Management

In the last few years, data volumes have grown and the way we use data has changed. Here are
five of the top database management challenges companies face.

1. Growing complexity in landscape

We alluded to this earlier. As the database market evolves, many companies are finding it
difficult to evaluate and choose a solution. There are relational databases, columnar databases,
object-oriented databases, and NoSQL databases. Not to mention the plethora of vendors
offering their own spin on each.

2. Limits on scalability

The fact is, all software has scalability and resource usage limitations, including database
servers. Forward thinking companies concerned about transaction processing capacity know that
cataloging components, database architecture, and even operating systems and hardware
configuration all affect scalability.

3. Increasing data volumes

As the amount of data generated and collected explodes, companies are struggling to keep up.
Research shows that we’ve created more data in the past two years than in the entirety of the
human race. Yet, a 10% increase in data accessibility could generate more than $65 million
additional net income for a typical Fortune 1000 company.

4. Data security

Databases are the hidden workhorses of many companies’ IT systems, storing critical public and
private data. Lately there has been an understandable and high-profile focus on data security. A
data breach typically costs a company $4 million, not to mention loss of reputation and goodwill.

5. Decentralized data management

Although there are benefits to decentralized data management, it presents challenges as well.
How will the data be distributed? What’s the best decentralization method? What’s the proper
degree of decentralization? A major challenge in designing and managing a distributed database
results from the inherent lack of centralized knowledge of the entire database.
 39

Q-How to Choose the Right Database Management Solution for Business

So, in the face of numerous challenges, how can companies select the best management solution
for their business? Here are a few recommendations.

Establish decision criteria.

The first step is to create an objective standard by which to evaluate options. Of course each
company will have different criteria. Some important considerations include cost of ownership,
ease of use, functionality, ease of database administration, and scalability. Perhaps most
important for businesses with long range projects, will the solution be around in 10 years?

Match the solution to your business goals.

Choice of database technology should take into account on business goals. How much data are
firm collecting? How fast do they collect it? How to access and analyze it? Each business is
different, thus there is no one-size-fit-all answer here.

Does it work with your existing technology?

Of course you want to avoid ending up with sprawling systems and disparate platforms. So an
important consideration is whether your solution will “play nice” with existing software and
hardware components.

Workload on hardware resources.

Whatever DBMS you select will be judged on database performance, or how fast it supplies
information to users. It is important to remember that workload can fluctuate dramatically by the
day, hour or even minute.

Take for example, the database of a retailer during a holiday shopping event. Under those
conditions, the processing demands placed on the system may tax the hardware and software
tools at the disposal of the system. The goal should be enabling the largest possible workload to
be processed without resource upgrades.