01 Fismgt302 Notes
01 Fismgt302 Notes
REVENUE MANAGEMENT
(FISMGT302)
MR. E. CHINYERERE
(HONOURS FINANCE & BANKING; MSC CORPORATE FINANCE
AND INVESTMENT MANAGEMENT)
+263712392021
INTRODUCTION TO COMPUTER APPLICATIONS IN
REVENUE MANAGEMENT
• COMPUTERS: COMPUTERS ARE ELECTRONIC DEVICES CAPABLE OF RECEIVING,
STORING, PROCESSING, AND OUTPUTTING DATA ACCORDING TO PROGRAMMED
INSTRUCTIONS.
• THEY CONSIST OF HARDWARE COMPONENTS SUCH AS THE CENTRAL
PROCESSING UNIT (CPU), MEMORY (RAM), STORAGE DEVICES (HARD DRIVES,
SOLID-STATE DRIVES), INPUT DEVICES (KEYBOARD, MOUSE, TOUCHSCREEN),
OUTPUT DEVICES (MONITOR, PRINTER, SPEAKERS), AND VARIOUS PERIPHERALS
(SUCH AS USB DEVICES, NETWORK ADAPTERS).
DATA
• DATA REFERS TO RAW, UNORGANIZED FACTS AND FIGURES THAT LACK
CONTEXT AND MEANING ON THEIR OWN.
• CHARACTERISTICS:
• RAW: DATA IS UNPROCESSED AND IN ITS ORIGINAL FORM.
• OBJECTIVE: DATA IS NEUTRAL AND DOES NOT CARRY ANY INTERPRETATION OR
MEANING.
• QUANTIFIABLE: DATA CAN BE MEASURED OR REPRESENTED NUMERICALLY.
• STRUCTURED OR UNSTRUCTURED: DATA CAN BE ORGANIZED IN A STRUCTURED
FORMAT (E.G., DATABASES WITH ROWS AND COLUMNS) OR UNSTRUCTURED (E.G.,
TEXT DOCUMENTS, IMAGES, VIDEOS).
CON’D
• EXAMPLES OF DATA:
• NUMERIC VALUES (E.G., TEMPERATURES, SALES FIGURES)
• TEXT STRINGS (E.G., NAMES, ADDRESSES)
• MULTIMEDIA FILES (E.G., IMAGES, VIDEOS)
• SENSOR READINGS (E.G., TEMPERATURE READINGS, GPS
COORDINATES)
INFORMATION
• SENSITIVITY
• CONFIDENTIALITY
• CRITICALITY
• REGULATORY COMPLIANCE
IMPLEMENTATION
• POLICY DEVELOPMENT
• LABELING AND MARKING
• ACCESS CONTROL
• TRAINING AND AWARENESS
DATABASES
• DATABASES ARE ORGANIZED COLLECTIONS OF DATA THAT ARE
STRUCTURED TO FACILITATE EFFICIENT STORAGE, RETRIEVAL,
AND MANIPULATION. THEY SERVE AS THE BACKBONE OF
INFORMATION SYSTEMS, ENABLING BUSINESSES AND
ORGANIZATIONS TO MANAGE LARGE VOLUMES OF DATA
AND SUPPORT VARIOUS APPLICATIONS AND PROCESSES.
• KEY COMPONENTS OF DATABASES:
• DATA
• DATABASE MANAGEMENT SYSTEM (DBMS)
• SCHEMA
• TABLES
• INDEXES
• QUERIES
• TRANSACTIONS
• SECURITY
• BACKUP AND RECOVERY
TYPES OF DATABASES
• RELATIONAL DATABASES: EXAMPLES INCLUDE MYSQL, ORACLE DATABASE,
MICROSOFT SQL SERVER, AND POSTGRESQL.
• NOSQL DATABASES: EXAMPLES INCLUDE MONGODB, CASSANDRA,
COUCHBASE, AND REDIS.
• DATA WAREHOUSES:
• GRAPH DATABASES: EXAMPLES INCLUDE NEO4J, AMAZON NEPTUNE, AND
MICROSOFT AZURE COSMOS DB.
• IN-MEMORY DATABASES: EXAMPLES INCLUDE SAP HANA, ORACLE
TIMESTEN, AND REDIS.
• DATABASES CAN BE DESIGNED TO SUPPORT EITHER REAL-
TIME PROCESSING OR BATCH PROCESSING, EACH WITH ITS
OWN ADVANTAGES AND TRADE-OFFS.
REAL-TIME PROCESSING
• PROBLEM SOLVING
• WRITING CODE
• TESTING AND DEBUGGING
• OPTIMIZATION
• DOCUMENTATION
• DEPLOYMENT AND MAINTENANCE
PROGRAMMING LANGUAGES
• PROGRAMMING LANGUAGES PROVIDE A STRUCTURED
AND STANDARDIZED WAY FOR PROGRAMMERS TO WRITE
INSTRUCTIONS THAT COMPUTERS CAN EXECUTE.
• THEY ARE DESIGNED TO EXPRESS ALGORITHMS AND
LOGIC IN A HUMAN-READABLE FORMAT, WHICH IS THEN
TRANSLATED INTO MACHINE-READABLE CODE BY
COMPILERS OR INTERPRETERS.
• EXAMPLES OF PROGRAMMING LANGUAGES INCLUDE:
• HIGH-LEVEL LANGUAGES (PYTHON, JAVA, C++, AND JAVASCRIPT)
• LOW-LEVEL LANGUAGES (USED FOR SYSTEM-LEVEL PROGRAMMING AND PERFORMANCE-
CRITICAL APPLICATIONS)
• GLOBAL CONNECTIVITY
• SECURITY AND PRIVACY (ENCRYPTION, FIREWALLS, VPNS)
• EVOLUTION AND INNOVATION (IOT, AI, ETC)
SERVICES THAT ARE FOUND ON THE INTERNET
• SERVICES FOUND ON THE INTERNET ENCOMPASS A WIDE RANGE
OF OFFERINGS THAT PROVIDE VARIOUS FUNCTIONALITIES,
RESOURCES, AND CAPABILITIES TO USERS ACROSS THE GLOBE.
• THESE SERVICES CAN BE CATEGORIZED INTO SEVERAL BROAD
CATEGORIES BASED ON THEIR FUNCTIONALITIES AND PURPOSES.
• SOME EXAMPLES OF SERVICES COMMONLY FOUND ON THE
INTERNET INCLUDE:
• COMMUNICATION SERVICES
• SOCIAL MEDIA PLATFORMS
• ENTERTAINMENT SERVICES
• E-COMMERCE SERVICES
• INFORMATION AND SEARCH SERVICES
• CLOUD COMPUTING SERVICES
INTERNET-BASED TOOLS AND
RESOURCES
FAQ (FREQUENTLY ASKED QUESTIONS)
FAQ (FREQUENTLY ASKED QUESTIONS)
• A WAN COVERS A LARGER GEOGRAPHICAL AREA AND CONNECTS MULTIPLE LANS OR OTHER
NETWORKS OVER LONG DISTANCES.
• WANS OFTEN RELY ON TELECOMMUNICATIONS INFRASTRUCTURE, SUCH AS LEASED LINES,
FIBER-OPTIC CABLES, AND SATELLITE LINKS, TO TRANSMIT DATA BETWEEN DISTANT LOCATIONS.
• THE INTERNET IS THE LARGEST EXAMPLE OF A WAN, CONNECTING MILLIONS OF DEVICES AND
NETWORKS WORLDWIDE.
• ADVANTAGES OF WIDE AREA NETWORK (WAN):
• GLOBAL CONNECTIVITY.
• SCALABILITY.
• REMOTE ACCESS
• CENTRALIZED MANAGEMENT
• DISADVANTAGES OF WIDE AREA NETWORK (WAN):
• COSTLY
• COMPLEXITY
• RELIABILITY
• SECURITY RISKS
WIRELESS NETWORKS
• WIRELESS NETWORKS USE RADIO WAVES OR INFRARED SIGNALS TO
TRANSMIT DATA BETWEEN DEVICES WITHOUT THE NEED FOR PHYSICAL
CABLES.
• WI-FI IS A COMMON WIRELESS NETWORKING TECHNOLOGY USED IN
HOMES, OFFICES, PUBLIC SPACES, AND BUSINESSES TO PROVIDE INTERNET
ACCESS TO LAPTOPS, SMARTPHONES, TABLETS, AND OTHER WIRELESS
DEVICES.
• OTHER WIRELESS TECHNOLOGIES INCLUDE BLUETOOTH FOR SHORT-RANGE
COMMUNICATION BETWEEN DEVICES AND CELLULAR NETWORKS FOR MOBILE
COMMUNICATION.
• ADVANTAGES OF WIRELESS NETWORKS:
• MOBILITY
• EASY DEPLOYMENT
• SCALABILITY
• CONVENIENCE
• DISADVANTAGES OF WIRELESS NETWORKS:
• INTERFERENCE
• SECURITY VULNERABILITIES
• LIMITED RANGE
• SPEED AND BANDWIDTH
INTERNET OF THINGS (IOT) NETWORKS
• ADVANTAGES OF TELECONFERENCE:
• ENABLES VIRTUAL MEETINGS AND COLLABORATION AMONG
PARTICIPANTS LOCATED IN DIFFERENT GEOGRAPHIC LOCATIONS.
• REDUCES THE NEED FOR TRAVEL, SAVING TIME AND EXPENSES
ASSOCIATED WITH IN-PERSON MEETINGS.
• SUPPORTS REAL-TIME AUDIO, VIDEO, AND SCREEN-SHARING
CAPABILITIES, FOSTERING COMMUNICATION AND COLLABORATION
AMONG REMOTE TEAMS.
• DISADVANTAGES OF TELECONFERENCE:
• MAY SUFFER FROM TECHNICAL ISSUES SUCH AS POOR AUDIO OR
VIDEO QUALITY, LATENCY, AND CONNECTIVITY PROBLEMS.
• MAY LACK THE PERSONAL INTERACTION AND NONVERBAL CUES
PRESENT IN FACE-TO-FACE MEETINGS, POTENTIALLY LEADING TO
COMMUNICATION CHALLENGES AND MISUNDERSTANDINGS
AMONG PARTICIPANTS.
ELECTRONIC DATA INTERCHANGE (EDI)
• THERE IS NEED TO IMPLEMENT ROBUST SECURITY MEASURES AND BEST PRACTICES TO MITIGATE THESE
SECURITY AND PRIVACY ISSUES, INCLUDING:
• USING STRONG PASSWORDS AND IMPLEMENTING MULTI-FACTOR AUTHENTICATION.
• KEEPING SOFTWARE AND SYSTEMS UP-TO-DATE WITH SECURITY PATCHES AND UPDATES.
• DEPLOYING ANTI-MALWARE SOFTWARE AND FIREWALLS TO PROTECT AGAINST THREATS.
• EDUCATING USERS ABOUT CYBERSECURITY BEST PRACTICES AND RAISING AWARENESS ABOUT COMMON THREATS SUCH AS
PHISHING.
• IMPLEMENTING ACCESS CONTROLS, ENCRYPTION, AND DATA LOSS PREVENTION MEASURES TO SAFEGUARD SENSITIVE
INFORMATION.
• CONDUCTING REGULAR SECURITY AUDITS, RISK ASSESSMENTS, AND INCIDENT RESPONSE DRILLS TO IDENTIFY
VULNERABILITIES AND RESPOND TO SECURITY INCIDENTS PROMPTLY.
INFORMATION SYSTEMS
• HARDWARE: PHYSICAL DEVICES SUCH AS COMPUTERS, SERVERS, STORAGE DEVICES, AND NETWORKING EQUIPMENT.
• SOFTWARE: PROGRAMS AND APPLICATIONS THAT ENABLE DATA PROCESSING AND MANIPULATION, INCLUDING
OPERATING SYSTEMS, DATABASE MANAGEMENT SYSTEMS (DBMS), AND VARIOUS APPLICATION SOFTWARE.
• DATA: RAW FACTS AND FIGURES THAT ARE PROCESSED BY COMPUTERS TO GENERATE MEANINGFUL INFORMATION.
• PROCEDURES: STANDARDIZED METHODS AND GUIDELINES FOR OPERATING AND USING THE INFORMATION SYSTEM
EFFECTIVELY.
• PEOPLE: USERS, DEVELOPERS, ADMINISTRATORS, AND OTHER STAKEHOLDERS INVOLVED IN THE DESIGN,
IMPLEMENTATION, AND UTILIZATION OF THE SYSTEM.
TYPES OF INFORMATION SYSTEMS
• TRANSACTION PROCESSING SYSTEMS (TPS): HANDLE ROUTINE TRANSACTIONS SUCH
AS SALES, INVENTORY, AND PAYROLL PROCESSING.
• MANAGEMENT INFORMATION SYSTEMS (MIS): PROVIDE MIDDLE MANAGEMENT WITH
REPORTS AND SUMMARIES DERIVED FROM TRANSACTIONAL DATA.
• DECISION SUPPORT SYSTEMS (DSS): ASSIST MANAGERS IN MAKING SEMI-
STRUCTURED DECISIONS BY PROVIDING ACCESS TO ANALYSIS TOOLS AND MODELS.
• EXECUTIVE INFORMATION SYSTEMS (EIS): PROVIDE TOP-LEVEL EXECUTIVES WITH
SUMMARIZED REPORTS AND ACCESS TO KEY PERFORMANCE INDICATORS (KPIS) FOR
STRATEGIC DECISION-MAKING.
• ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS: INTEGRATE VARIOUS
BUSINESS FUNCTIONS AND PROCESSES ACROSS AN ENTIRE ORGANIZATION.
• CUSTOMER RELATIONSHIP MANAGEMENT (CRM) SYSTEMS: MANAGE
INTERACTIONS WITH CUSTOMERS AND PROSPECTS TO IMPROVE BUSINESS
RELATIONSHIPS.
• KNOWLEDGE MANAGEMENT SYSTEMS (KMS): CAPTURE, STORE, AND
DISSEMINATE KNOWLEDGE WITHIN AN ORGANIZATION TO FACILITATE
DECISION-MAKING AND INNOVATION.
ROLE OF COMPUTERS IN INFORMATION SYSTEMS
• COMPUTERS SERVE AS THE PRIMARY PROCESSING UNITS IN INFORMATION
SYSTEMS, EXECUTING SOFTWARE APPLICATIONS TO PERFORM VARIOUS TASKS.
• THEY PROVIDE STORAGE CAPABILITIES FOR DATA AND INFORMATION IN VARIOUS
FORMS, RANGING FROM DATABASES TO FILES AND DOCUMENTS.
• NETWORKING TECHNOLOGIES ENABLE COMPUTERS TO COMMUNICATE AND
SHARE INFORMATION ACROSS LOCAL AND WIDE-AREA NETWORKS, FACILITATING
COLLABORATION AND DATA EXCHANGE.
• SPECIALIZED HARDWARE COMPONENTS SUCH AS SERVERS, ROUTERS, AND
SWITCHES ARE USED TO SUPPORT SPECIFIC FUNCTIONS WITHIN INFORMATION
SYSTEMS, SUCH AS HOSTING DATABASES OR ROUTING NETWORK TRAFFIC.
CHALLENGES AND CONSIDERATIONS:
• SECURITY: PROTECTING SENSITIVE DATA FROM UNAUTHORIZED ACCESS, THEFT, OR
TAMPERING IS A CRITICAL CONCERN IN INFORMATION SYSTEMS.
• INTEGRATION: ENSURING SEAMLESS COMMUNICATION AND DATA SHARING
AMONG DIFFERENT COMPONENTS AND SYSTEMS WITHIN AN ORGANIZATION.
• SCALABILITY: DESIGNING SYSTEMS THAT CAN ACCOMMODATE GROWTH IN DATA
VOLUME, USER BASE, AND FUNCTIONAL REQUIREMENTS OVER TIME.
• USABILITY: CREATING USER-FRIENDLY INTERFACES AND WORKFLOWS TO ENHANCE
PRODUCTIVITY AND USER ADOPTION.
• MAINTENANCE AND SUPPORT: PROVIDING ONGOING MAINTENANCE,
TROUBLESHOOTING, AND SUPPORT SERVICES TO KEEP INFORMATION SYSTEMS
OPERATIONAL AND EFFICIENT.
ADVANTAGES OF INFORMATION SYSTEMS
• IMPROVED EFFICIENCY
• ENHANCED DECISION-MAKING
• BETTER COMMUNICATION
• DATA STORAGE AND RETRIEVAL
• IMPROVED CUSTOMER SERVICE
• STRATEGIC ADVANTAGE
• COST SAVINGS
• GLOBAL REACH
DISADVANTAGES OF INFORMATION SYSTEMS
• SECURITY RISKS
• COMPLEXITY AND MAINTENANCE
• DEPENDENCY ON TECHNOLOGY
• PRIVACY CONCERNS
• COMPATIBILITY ISSUES
• DATA OVERLOAD
• TRAINING AND RESISTANCE
• ETHICAL CONCERNS
EXAMPLES OF INFORMATION SYSTEMS
• E-BUSINESS ENCOMPASSES A BROADER RANGE OF ACTIVITIES BEYOND JUST BUYING AND SELLING
PRODUCTS OR SERVICES ONLINE.
• INVOLVES THE USE OF ELECTRONIC TECHNOLOGIES TO CONDUCT VARIOUS BUSINESS PROCESSES,
INCLUDING CUSTOMER RELATIONSHIP MANAGEMENT, SUPPLY CHAIN MANAGEMENT, PROCUREMENT,
INVENTORY MANAGEMENT, MARKETING, AND MORE.
• E-BUSINESS SYSTEMS ENABLE ORGANIZATIONS TO STREAMLINE INTERNAL PROCESSES, IMPROVE
COLLABORATION WITH PARTNERS AND SUPPLIERS, ENHANCE CUSTOMER SERVICE, AND ULTIMATELY
DRIVE EFFICIENCY AND PROFITABILITY.
• EXAMPLES OF E-BUSINESS SYSTEMS INCLUDE ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS,
CUSTOMER RELATIONSHIP MANAGEMENT (CRM) SYSTEMS, SUPPLY CHAIN MANAGEMENT (SCM)
SYSTEMS, AND VARIOUS COLLABORATION TOOLS.
E-COMMERCE SYSTEMS
• DATA COLLECTION:
• ANALYSIS OF HISTORICAL DATA:
• SELECTION OF FORECASTING METHODS:
• DEVELOPMENT OF FORECASTING MODELS:
• VALIDATION AND CALIBRATION:
• SCENARIO ANALYSIS:
• MONITORING AND UPDATING FORECASTS:
CHALLENGES AFFECTING BUSINESS FORECASTING
• BUSINESS FORECASTING IS A CRITICAL PROCESS FOR ORGANIZATIONS TO
ANTICIPATE FUTURE TRENDS, PLAN RESOURCES, AND MAKE INFORMED
DECISIONS.
• H/WEVER, SEVERAL CHALLENGES CAN AFFECT THE ACCURACY AND
RELIABILITY OF BUSINESS FORECASTING.
• SOME OF THESE CHALLENGES INCLUDE:
• DATA QUALITY AND AVAILABILITY
• UNCERTAINTY AND VOLATILITY
• COMPLEXITY AND DYNAMICS
• ASSUMPTIONS AND BIAS
• MODELING LIMITATIONS
• LACK OF COLLABORATION AND COMMUNICATION
• SHORT-TERM FOCUS AND OVERRELIANCE ON HISTORICAL DATA
• TECHNOLOGY AND INFRASTRUCTURE CONSTRAINTS
REVENUE FORECASTING METHODS
• REVENUE AND BUSINESS FORECASTING METHODS ARE CRUCIAL FOR
ORGANIZATIONS TO ANTICIPATE FUTURE TRENDS, PLAN RESOURCES
EFFECTIVELY, AND MAKE INFORMED STRATEGIC DECISIONS.
• REVENUE FORECASTING METHODS INCLUDE:
• TIME SERIES ANALYSIS
• REGRESSION ANALYSIS
• MARKET RESEARCH AND SURVEYS
• SALES PIPELINE ANALYSIS
• FINANCIAL MODELING
• SCENARIO PLANNING
• ECONOMETRIC MODELS
• MACHINE LEARNING AND ARTIFICIAL INTELLIGENCE (AI)
• EXPERT JUDGMENT
• COMPOSITE FORECASTING
BUSINESS VALUE OF USING EXCEL APPLICATION IN
REVENUE FORECASTING